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981ORDINANCE NO. AN ORDINANCE ESTABLISHING A SYSTEM OF PURCHASING BY FORMAL ADVERTISING AND COMPETITIVE NEGOTIATIONS BY THE CITY OF EDGEWATER, FLORIDA: REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES A ®����® IN CONFLICT HEREWITH AND PROVIDING AN A EFFECTIVE DATE THEREFOR. WHEREAS, a determination has been made by the City Council of the City of Edgewater, Florida, that a more definitive purchas- ing ordinance should be utilized by the City of Edgewater, Florida, in the procurement of materials, supplies, equipment, and certain contractual services. NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF EDGEWATER, FLORIDA: SECTION 1. That this Ordinance shall be entitled as the "Purchasing Ordinance of Edgewater, Florida." SECTION 2. That the purpose of this Ordinance is to prescribe the manner in which the City of Edgewater shall control the purchase of materials, supplies, equipment, and certain contractual services of the City. SECTION 3. For the purposes of this Ordinance, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the content, words used in the present tense include the future; words used in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always man- datory and not merely directory. City is the City of Edgewater, Florida. City council is the City Council of the City of Edgewater, Florida. Contractual services shall mean and include all telephone, gas, water, electric light and power service, towel and cleaning service, insurance, leases and concessions, demolition of buildings, rental, repair or maintenance of equipment, machinery, and other city -owned property, and other like services. The term services shall not include professional services which are unique in their nature and not subject to competition. 9Ja/ SECTION 4. Formal contract procedure.- It is the intent of the City of Edgewater to utilize competitive bidding for contractual services whenever possible. Therefore, all supplies, equipment, and contractual services, except as otherwise provided herein, when the estimated cost thereof shall exceed two thousand dollars ($2,000.00) shall be purchased by formal, written contract and/or purchase order from the lowest and best responsible bidder after due notice inviting proposals; provided, however, that the city council shall have the authority to waive execution of formal contract in cases where it deems it advisable to do so. All sales of personal property (except trade-in personal property) which has become obsolete and unusable, when the estimated value shall exceed two thousand dollars ($2,000.00), shall be accomplished by formal contract to the highest responsible bidder, after due notice inviting proposals has been published as required by law. (a) Notice inviting bids. (1) Newspaper. Notice inviting bids shall be published once in at least one official newspaper having general distribution in the city and at least five (5) working days preceding the last day set for the receipt of proposals. (2) Scope of notice. The newspaper notice required herein shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. (3) Bidders' list. The city shall also solicit sealed bids from all responsible prospective suppliers who have requested their names to be added to a "bidders' list" which the city shall maintain, by sending them a copy of such newspaper notice or such other notice as willacquaint them with the proposed purchase or sale. In any case, invitations sent to the vendors on the bidders' list shall be limited to commodities that are similar in character and ordinarily handled by the trade group to which the invitations are sent. - 2 - r n (b) Bid deposits. When deemed necessary by the city, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be'entitled to return of surety where the city has required such. A successful bidder shall forfeit any surety required by the city upon failure on his part to enter a contract within ten (10) days after the award. (c) Sealed bids. Bids shall be submitted sealed to the city and shall be identified as bids on the outside of the envelope. (d) Opening. Bids shall be opened in public at the time and place stated in the public notices and shall be witnessed and certified. (e) Tabulation. A tabulation of all bids received shall be made and shall be available for public inspection. (f) Exception for single source commodities. Purchases of supplies, equipment and contractual services from a single source may be excepted from bid requirements upon certification by the city council stating the conditions and circumstances re- quiring the purchase. This certification shall set forth the purpose and need and why the item is the only one that will produce the desired results. (g) Award of contracts. All contracts, when the sum is two thousand dollars ($2,000.00) or less, shall be awarded by the City Clerk to the lowest and best bidder. All contracts, when the sum is in excess of two thousand dollars ($2,000.00) shall be awarded by the city council to the lowest and best bidder. In determining the lowest and best bidder, in addition to price, there shall be considered the following: 1. The ability, capacity and skill of the bidder to perform the contract. 2. Whether the bidder can perform the contract within the time specified, without delay or interference. 3. The character, integrity, reputation, judgment, experience and efficiency of the bidder. 9. The quality of performance of previous contracts. 5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract. - 3 - 6. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service. 7. The quality, availability and adaptability of ' the supplies, or contractual services to the particular use required. S. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract. (h) Award to other than lowest bidder. Tie bids. When the award of a contract is not given to the lowest bidder, a full and complete statement of the reason for placing the contract elsewhere shall be prepared by the city clerk and approved by the city council. Award of all tie bids shall be made by the city council. SECTION 5. Purchases by negotiation - It is the intent of the City of Edgewater to utilize formal contract procedures as set out in Section 4 above. However, purchases of contractual services by negotiation is a recognized method of purchasing and may be utilized when certain requirements have been met. SECTION 6. General requirements for purchases by negotiation. (a) No purchase in excess of $2,000.00 shall be made by negotiation if the use of formal advertising is feasible and practicable under the existing conditions and circumstances. (b) No contract shall be entered into as a result of nego- tiation unless or until the following requirements have been satisfied: (1) The contemplated purchase comes within one of the circumstances permitting negotiation as set forth in Section 7 below. (2) Any necessary determinations and findings have been made by the City Council. (3) The prospective contractor has been determined to be responsible. - 4 - (c) whenever contractual services are to be procured by negotiation, proposals shall be solicited from the maximum number of qualified sources, including small business concerns, consistent with the nature of and requirements for the supplies or services to be procured, to the end that the procurement will be made to the best advantage of the city, price and other factors considered. Proposals shall be supported by statements and analyses of estimated costs or other evidence of reasonable prices and by such information concerning other vital matters as is deemed necessary. (d) Negotiated purchases shall be on a competitive basis to the maximum practical extent. SECTION 7. Circumstances permitting negotiations - Purchases may be effected by negotiation under any one of the following exceptions: (a) Public exigency - Purchases and contracts may be nego- tiated without formal advertising if the public exigency will not admit of the delay incident to advertising. In order for this authority to be used, the need must be compelling and of unusual urgency, as when the city would be seriously injured, financially or otherwise, if the property or services to be purchased or contracted for were not furnished by a certain time, and when they could not be procured by that time by means of formal advertising. This applies irrespective of whether that urgency could or should have been foreseen. For example, this authority may be used when property or services are needed at once because of a fire, flood, explosion or other disaster. (b) Purchases not in excess of $2,000.00 - Purchases and contracts may be negotiated without formal advertising if the aggregate amount involved does not exceed $2,000.00. Competitive purchasing shall be utilized to the maximum extent possible even if the purchase does not exceed $2,000.00. (c) Personal or professionalservices - Purchases and contracts may be negotiated without formal advertising if for personal or professional services. This authority shall be used only when all - 5 - C of the following conditions have been satisfied: (1) If personal services, they are required to be performed by an individual contractor in person (not by a concern); if professional services, they may be performed either by an individual contractor in person or a concern; (2) The services are of a professional nature, or are to be performed under city supervision and paid for on a time basis. (c) Impracticable to secure competition by formal adver- tising - Purchases and contracts may be negotiated without formal advertising if for property or services for which it is impracticable to secure competition. The following are illustrative of circum- stances with respect to which this authority may be used: (1) When property or services can be obtained from only one person or firm. (2) When competition is precluded because of the existence of patent rights, copyrights, secret processes, control of basic raw material, or similar circumstances. (3) When bids have been solicited pursuant to formal advertising and no responsive bid has been received from a responsible bidder. (4) When bids have been solicited pursuant to the requirements of formal advertising and the responsive bid or bids do not cover the quantitative requirements of the invitation for bids, in which case, negotiation is permitted for the remaining requirements. (5) When the contemplated procurement is for electric power or energy, gas (natural or manufactured), water, or other utility services or when the contemplated procurement is for construction of a part of a utility system and it would not be practicable to allow a contractor other than the utility company itself to work upon the system. (6) When the contemplated procurement is for technical nonpersonal services in connection with the assembly, installation, or servicing of equipment of a highly technical or specialized nature. (7) When the contemplated procurement involves maintenance, repair, alteration, or inspection and the exact nature or amount of the work to be done is not known. (8) When it is impossible to draft for an invitation for bids, adequate specifications or any other adequately detailed description of the required property or services. SECTION 8: That all Ordinances or parts or Ordinances, and all Resolutions or parts of Resolutions of the City of Edgewater, Florida, that are in conflict with this Ordinance be and the same are hereby repealed. SECTION 9: That the City Clerk is hereby directed to adver- tise this Ordinance as required by law. SECTION 10: This Ordinance shall become effective immediately upon its final passage as provided by law. The first reading of the above Ordinance was read in full and passed by votes of the City Council of the City of Edgewater, Florida, at the meeting of said Council held on the ""3ay of p�, , 1977, and approved as provided by law. The second reading of said Ordinance to be at the meeting of the City Council to be held on the _=day of 1977. Roll Call vote as follows: ATTEST . mayor Courf ilwom n FIRST READING Councilman Counci Coun i man 7 - Ma or U�L�✓ SECOND READING CourV lwoman Councilman Counc _ r Counc man This Ordinance prepared by Judson I. Woods, Jr., City Attorney