Fort Walton Beach Resolution — 2012-17 Amends FIN 9 Purchasing Policies — reading text

RESOLUTION 2012 -17 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA; APPROVING THE REVISED ADMINISTRATIVE POLICY FIN -09, PURCHASING POLICIES, SETTING COUNCIL APPROVAL FOR EQUIPMENT AND VEHICLE PURCHASES OVER CERTAIN AMOUNTS; AND SETTING AN EFFECTIVE DATE. WHEREAS, pursuant to section 4. 01. 023, of the Code of Ordinances, all purchases must be made in accordance with approved and accepted procedures, and WHEREAS, the City finds it is in its best interest to amend the current Code of Ordinances for administrative practices for certain purchases and purchase amounts, and WHEREAS, pursuant to section 4. 01. 025, of the Code of Ordinances, the administrative practices used for purchases above the established threshold amounts of $20, 000 and 25, 000 for equipment and vehicle repairs requires council action, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA AS FOLLOWS: The City Council hereby approves the revised administrative practices for these purchases as set forth in Administrative Policy FIN -09, Purchasing. This Resolution shall take effect immediately upon approval by the City Council. Adopted: 04er If qol A dbAll. 0 4 Mike Anderson, Mayor Attest: Approved for form and legal sufficiency: Helen Spend6r, City Clerk and Dyke , City A ney CITY OF FORT WALTON BEACH ADMINISTRATIVE POLICY NUMBER —FIN -09 SUBJECT: Purchasing REVISIONDATE: Augustl4. 2012 ORIGINAL EFFECTIVE DATE: September 10, 2001 APPROVED: Michael D. Beedie, Acting City Manager 1. 1. Section 4. 01. 02 of the City of Fort Walton Beach Code of Ordinances authorizes the establishment of a Central Purchasing Department to coordinate purchases for the requirements of all City agencies. Regulations for purchases by this department shall be as prescribed from time to time by the City Council or the City Manager. 1. 2. The City Council of the City of Fort Walton Beach recognizes centralized purchasing as a necessary function of effective government, and, therefore, declares that it shall be the responsibility of the Purchasing Division to centralize the purchase of all supplies, equipment, services and construction for the departments and divisions of the City, the basic objective of which is to obtain the best total value consistent with operational needs, while maintaining fair and open competition. 1. 3. Since mles and regulations are necessary for the proper operation of the purchasing function and since it is essential that all who are involved in the purchasing operation be well informed, this Administrative Policy will govern the purchasing process and provide direction to all employees directly or indirectly associated with the function of purchasing. 2. BACKGROUND and DEFINITIONS 2. 1. The purchasing function involves the procurement of materials, supplies, equipment, and services at the lowest possible cost, consistent with the quality needed to meet the required standards established by the City. This act is the sole responsibility of the Purchasing Division, whose goal is the promotion of the best interest of the City through intelligent action and fair dealings, resulting in obtaining maximum savings for the City. 2. 2. The objectives of the Purchasing Division of the City of Ft. Walton Beach are as follows: 2.2. 1. Deal fairly and equitably with all vendors wishing to do business with the City.  2. 2. 2. Provide professional procurement services for all departments and divisions within the City. 2. 2.3. Assure adherence to all laws, regulations, and procedures related to City procurement. 2. 2. 4. Maximize competition for all procurements of the City. 2. 2. 5. Obtain maximum savings through innovative buying practices and application of value analysis techniques. 2. 2. 6. Administer and negotiate Contracts for the City. 2. 2. 7. Purchase goods and services from capable vendors at the lowest price, consistent with the quality, performance, and delivery requirements of the City. 2.3. Addendum — a document or other information attached or added to clarify, modify, or support the information in the original bid document. 2.4. Change Order — a modification to an executed contract due to unanticipated conditions or developments relating to that contract. 2.5. City Official —a publicly elected representative serving as Mayor or member of the City Council. 2. 6. City Personnel — employees of the City, including the City Manager and the City Clerk. 2.7. Certified Minority Business Enterprise — merchants who are certified by the Florida Office of Supplier Diversity and that meet the criteria outlined by F. S. 288. 2.5. Competitive Procurement — method of procurement used for all purchases greater than or equal to $ 1, 000 and less than $20, 000. 2.9. Competitive Solicitation — any of three formal methods of procurement for purchases equal to or greater than $ 20,000. 2. 10. Cone of Silence — the period from the time of issuance of the competitive solicitation until the time the award is made, in which no Evaluation Committee Member or City Employee is permitted to be in contact with bidders regarding an outstanding solicitation, with the exception of the Purchasing Division. 2.11. Cooperative Procurement— combining of the requirements of two ( 2) or more public agencies to obtain the advantages of volume purchases, improved specifications, reduced administrative costs, and increased intergovernmental cooperation. 2. 12. Designee — City employee who has received prior written approval by the Department Director and the Finance Director to act in the place of the Department Director in specific purchasing functions. 2. 13. Direct Payment form — alternate method of requesting a purchase from a vendor not already established in the City' s accounting system and to which the purchase is non -recurring. 2. 14. Emergency purchase — situation that prompts a purchase when one of the following is occurring: 2. 14. 1. Public health, welfare, or safety is threatened 2. 14. 2. Critical City operations are severely adversely affected  2. 14. 3. Delay in the procurement of goods /services is against the public interest 2.15. Gratuity —A favor or gift, usually in the form of money, given in return for service. 2. 16. Immediate Family —spouse, brother, sister, parents, children, in -laws. 2. 17. Invitation to Bid ( ITB) — a method of soliciting bids for the acquisition of goods and/ or services when specification requirements are precise and stated in fairly exact terms, including the terms and conditions of the bid document. The responses to an ITB must be returned to a specific location at a specific time, in accordance with the bid document, and all responses received by the time and date set forth must be opened and read aloud in public. 2. 18. Local Merchant — A merchant whose primary place of business is located within the City of Fort Walton Beach and who has possessed a valid City of Fort Walton Beach Business Tax Receipt for a minimum of one ( 1) year prior to the issuance of the procurement mechanism. 2. 19. Lowest bidder— the bidder with the lowest price. 2.20. Minority Business Enterprise — business certified by the Office of Supplier Diversity and that meets the criteria outlined by F. S. 288. 703. 2.21. Non- Competitive Purchases ( Sole Source) — award of contracts for goods /services available from only one source, such as unique, patented, proprietary, or franchised supplies, or by the unique nature of the requirement or vendor, the impracticality of obtaining competition, or market conditions. 2. 22. Petty Cash —method of payment governed by Administrative Policy FIN03. 2. 23. Purchase Order — the official legal record of contract between the City and a vendor. 2.24. Piggyback — a method of procuring goods or services via utilizing a bid or contract issued by another public agency that has fulfilled the requirements of competitive solicitation. 2.25. Purchasing Card — method of payment whereby charges are paid based on receipts or invoices at month end utilizing a credit card and not requiring a purchase order. 2.26. Purchase Requisition —an electronic document detailing the goods or services being requested, and from which quotes will normally be obtained and a purchase order subsequently issued. This is the preferred mechanism for requesting a purchase. 2. 27. Request for Proposal ( RFP) — a competitive procurement method used when the specifications or scope of work which the commodities or contractual service requires cannot be specifically defined, and/ or when a qualified bidder is requested to propose commodities or contractual services to meet the desired outcome described in the solicitation. 2.28. Request for Qualifications ( RFQ) — a competitive procurement method used when the required service is of a professional and/ or highly technical nature and is issued and evaluated in accordance with F. S. 287. 055. Focuses on determining qualifications of bidders or providers of professional services.  2.29. Responsible bidder —a bidder who has the capability, in all respects, to fully perform the contract requirements and the integrity and reliability to assure good faith in performance. 2. 30. Responsive bidder —a bidder who is responsible and conforms in all material respects to the requirements of the solicitation. 2. 31. Scope of Services — detailed description of the service requested to be performed in a contract. 2. 32. State Contract — a contract for goods or services issued by the Florida Department of Management Services for use by all state agencies. 2.33 Task Order — supplementary contractual and obligating documents that usually include task description, task schedule, and a budget scope for the completion of a specific task under a broader contract for professional services. 3. POLICY /PROCEDURES 3. 1. Code of Ethics and Standards of Conduct 3. 1. L All City personnel and officials engaged in purchasing and related activities shall conduct business dealings in a manner above reproach in every respect. 3. 1. 2. All City personnel and officials engaged in the purchasing cycle are bound by the standard of conduct for public officers and