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98-R-13RESOLUTION NO. 98-R-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, MODIFYING THE PURCHASING POLICY AND PROCEDURES; REPEALING ALL RESOLUTIONS IN CONFLICT HEREWITH AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council of Edgewater acknowledges the Purchasing Regulations was adopted on April 15, 1996. WHEREAS, City Council and Staff has reviewed and determined the need to modify the existing Purchasing Policy and Procedure Manual in an effort to bring consistency to the existing policies and procedures. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Edgewater, Florida: Section 1. City of Edgewater, Purchasing Policy and Procedures are attached hereto and incorporated by reference as Exhibit "A" shall be binding upon the City Council and all agencies, boards, committees, departments, and employees responsible to the City Council as set forth herein. Section 2. The "Purchasing Policy and Procedures" may be amended from time to time as deemed appropriate by the City Council upon adoption of a resolution approving such amendments. Section 3. All resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed. Section 4. This resolution shall take effect upon adoption. 98-R-13 After motion by Councilman Gornto and second by Councilwoman Lichter, the vote on this resolution is as follows: Mayor Randy G. Allman AYE Councilman Jim Gornto AYE Councilman Myron F. Hammond ABSENT Councilman Gary W. Roberts AYE Councilwoman Judy Lichter AYE PASSED AND DULY ADOPTED this 16th day of November, 1998. CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA By. Ra dy G. Allman Mayor APPROVED FOR FORM AND CORRECTNESS: i' WUNiI. a"� Nikki Clayton City Attorney 98-R-13 2 EXHIBIT "A" CITY OF EDGEWATER POLICY SUBJECT: PURCHASING POLICY AND PROCEDURES POLICY DATE: APRIL 15, 1996 REVISION DATE: NOVEMBER 1998 Whereas, the City Council of the City of Edgewater, Florida has determined that fair and open competition is a basic tenet of public procurement; that such competition reduces the appearance and opportunity for favoritism and inspires public confidence that the contracts are awarded equitably and economically; that documentation of the acts taken and effective monitoring mechanisms are important means of curbing any improprieties and establishing public confidence in the process by which commodities and contractual services are procured; that it is essential to the effective and the ethical procurement of commodities and contractual services that there be a system of uniform procedures to be utilized by the City in managing and procuring commodities and contractual services; that detailed justification of decisions in the procurement of commodities and contractual services be maintained; and that adherence by the City and the contractor to specific ethical considerations be required, and, Whereas, the City Council has previously adopted purchasing regulations to meet the basic tenet of fair and open competition, and, Whereas, the City Council has determined it to be in the best interest to revise its current Purchasing Regulations, Now, therefore, be it resolved, that the City's existing Purchasing Regulations me hereby rescinded in its entirety and that there is hereby established a new Purchasing Policy as follows: 1. DEFINITIONS -The following definitions shall apply. a. "Commodity" means any of the various supplies, materials, goods, merchandise, equipment, and other personal property. CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES b. "Competitive Sealed Bids" or "Competitive Sealed Proposals" refers to the receipt of one or more sealed bids or proposals submitted by responsive and qualified bidders or offerers. c. "Contractor" means a person who contracts to sell commodities or contractual services to the City. d. "Contractual Services" means the rendering by a contractor of its time and effort rather than the furnishing of specific commodities. e. "Purchasing Policy" means the policy governing purchasing as adopted by the City Council. f. "Purchasing Procedures and Practices" means the procedures, practices, rules, regulations, or other administrative functions which may be changed from time to time by the City Manager to implement and adhere to the Purchasing Policy. 2. APPLICABILITY This purchasing policy shall be binding on the City Council and all agencies, boards, committees, departments, and employees responsible to the City Council as established herein. This policy shall be deemed supplemental to any applicable requirements of State law. 3. IMPLEMENTATION AND ENFORCEMENT The City Manager shall be responsible, through and in conjunction with the Finance Director, for implementing and enforcing the Purchasing Policy on a Citywide basis. Each Department Head shall be responsible for implementing and enforcing these Purchasing Policies within his department. Violation of the Purchasing Policy may be grounds for disciplinary action, up to and including discharge. 4. GENERAL PURCHASING POLICY Normally, purchases of materials, supplies, equipment and services from outside vendors will be acquired through competitive quotations or bidding. The City Manager can approve cooperative purchasing agreements which include, but is not limited to, GSA, SICOP Bids, State of Florida Bids or SNAPS contracts, Florida Sheriffs Association Bids, or any other entity's bid provided that the entity has such language written in their bid documents, and the awarded vendor agrees to the purchase. CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 5. MINIMUM STANDARDS The following minimum standards are hereby established: Value of Purchase Pricing Mechanism Authority to Approve Under $2,000 One Verbal Quote Department Head $2,001 to $5,000 Three Written Quotes Finance Director $5,001 to $15,000 Three Written Quotes City Manager Over $15,000 Formal Invitation to City Council Bid or Request for Proposal All contracts or agreements awarded or approved by the City Council shall be signed by the City Manager upon review and approval by the City Attorney. 6. EXCEPTIONS TO MINIMUM STANDARDS When it is determined to be in the best interest of the City, the minimum standards contained in (5) above may be waived on a case -by -case basis. Authority to waive the minimum standards are as follows: a. The City Manager may waive the minimum standards for any commodity or contracted service which does not exceed $15,000 in value. b. The City Council may waive the minimum standards for any commodity or contracted services over $15,000. c. Purchases made from State Contracts, Snaps Contracts, Sicop Bids, GSA Bids, other Entities Bids or RFPs and Sheriffs Bids are exempt from the pricing mechanism, but still need the approval of the City Council. 98-R-13-Exhibit-A CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 7. EMERGENCY PURCHASES Emergency purchases valued at not more than $2,000 may be made without quotes, upon Department Head approval. Emergency purchases valued at more than $2,000 which affect the health, welfare or safety of the public may be made with the approval of the City Manager who shall be notified as soon as the Department Head is aware of the emergency situation. The City Manager shall notify the City Council of the purchase and the circumstances involved as soon as possible after the occurrence of the event when the purchase is over $15,000. S. MASTER BIDDERS FILE The Finance Department shall maintain a Master Bidder File comprised of vendors that have requested the opportunity to bid on City purchases. The Master Bidders File shall be used for formal written quotations and sealed bids. The City is not limited to the use of vendors in the Master Bidder Files, but may solicit bids or quotations from other vendors if it is deemed in the best interest of the City to do so. The Master Bidder Files will be purged annually at the beginning of the fiscal year. 9. PROCEDURES AND PRACTICES The City Manager is hereby given authority to establish a system, or amend the existing system, of uniform procurement procedures and practices to implement this policy. Additions, deletions or amendments to these procedures and practices shall be at the sole discretion of the City Manager. 10. EFFECTIVE DATE The Purchasing Policy shall become effective immediately upon its adoption. 98-R-13-Exhibit-A CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 1. Purchases under $2,000. Departments should get at least one verbal quote 2. Purchase Orders from $2,001 to $5,000. Departments must get three written quotes and submit them along with the Purchase requisition to the Finance Director. 3. Purchase Orders from $5,001 to $15,000. Departments must get three written quotes and submit them along with the Purchase requisition to the Finance Director. 4. Purchases over $15,000. All requests for goods or services that exceed $15,000 will require a formal Bid or Request For Proposal. The City Manager is authorized to advertise for Formal Bids or RFPs. *The requirement for quotes, bids or RFPs will be waived if the goods or services are available on State Contracts, State of Florida SNAPS agreements, Florida Sheriffs Bids, GSA contracts, Sicop Bids, or through other governmental entities bids or RFPs that specify that other entities may purchase from their bids or RFPs. Departments must submit a detailed description of the commodity or services they wish to purchase. Bids and RFPs can have a long lead time, so requests should be submitted at least 90 days prior to any expected delivery or start dates. 5. Bids or RFPs a. Notice of bids or RFPs shall be published at least once in a newspaper of general circulation, and at least seven (7) days prior to the receiving deadline. b. Notice shall state commodity (ies) or service (a) in the Bid or RFP invitation. c. Bid or RFP notice may be sent to qualified bidders from the Master Bidders File located in the Finance Department. d. A copy of the Bid or RFP, or a copy of the legal notice will be made available to all interested bidders. There may be a cost associated with the distribution of Bids or RFP documents. 98-R-13-Exhibit-A CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 6. Single/Sole Source Purchase. Single or sole source purchase requests must be accompanied by a Single/Sole source memo signed by the Department Head. The memo must state why the purchase can only be made through one particular vendor, or why a department is requesting a certain make or model. These forms are available in the Finance Department. If it is in the City's best interest to standardize on certain makes or models, Finance Director approval will be required. If single or sole source purchases from a single vendor will exceed $15,000 on an annual basis, City Council approval will be required. See Attachment C: Single/Sole Source Memo. 7. Blanket Purchase Order - At the request of a Department Head or several Department Heads the Finance Department issues the Blanket Purchase Order to a vendor and is used to process multiple releases of the same general Purchase Order each fiscal year. The same Purchase order number is used throughout the fiscal year but each payment is distinguished by a Release Number (2-digit suffix to the PO number). 8. Emergency Purchase Orders. All Department Heads can make an after hours Emergency Purchase up to $2,000. A justification memo and supporting documentation is due within five calendar days to the Finance Department for Purchase Order Processing. The City Manager may authorize emergency purchases for any amount when the health, safety, or welfare of the citizens or employees may be affected. The City Manager shall file with the City Council a memo detailing the emergency and a detailed expenditure report in the event the purchase exceeds $15,000. 9. Unauthorized Purchases. Employees purchasing items without appropriate authorization shall be solely and personally responsible for the payment of said items, and may face disciplinary action up to and including termination. 98-R-13-Exhibit-A CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES Purchasing objectives are essential to the implementation and administration of a meaningful, viable and successful purchasing program. Purchasing objectives spell out what is expected of the program and of the individuals who administer and participate in it. Purchasing objectives also serve as a set of guidelines to be used by management, operating personnel and the Finance Department in reaching responsible and intelligent decisions relative to the day to day administration of the purchasing program. Over the long run, purchasing objectives provide management with a set of general standards against which to gauge the effectiveness and success of the purchasing program. These objectives are as follows: 1. Establish an on -going Purchasing Program capable of providing daily service and support on an organization wide basis. 2. Introduce a greater measure of responsibility and accountability. 3. Assist management at all levels in reaching responsible, cost effective decisions in the procurement of quality supplies and services for the City's use. 4. Assure realization of the principles of competitive procurement. 5. Formulate policy and procedures designed to enhance the efficiency of the City's procurement process and assure procurement in a timely and proper manner. 6. Promote good will and clear communication in City -Vendor relationships and inter - organization relationships relative to the Finance Department. 7. Promote the realization of equal opportunity policies through procurement relations with vendors. 98-R-13-Exhibit-A CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 1. Purchasing. It is the policy of the City of Edgewater to authorize Department Heads to carry out the purchasing policies and procedures set forth in the Purchasing Policy. The Finance Director or his/her designee is responsible for the oversight of all purchases and shall report to the City Manager any matters which deviate from the Purchasing Policy. 2. Source of Supply. The Department Heads shall select source of supply. This shall be accomplished with a view toward creating good vendor relations and promoting the best interest of the City. As a general policy, purchases shall be awarded on the basis of (1) availability, (2) best price, (3) delivery, (4) capability, integrity and reliability of the vendor, (5) quality, (6) safety factors, (7) repair and warranty work (if applicable), (8) and any other special factors deemed important by the Department Head. 3. Commitments. The Department Heads shall conduct and conclude all negotiations affecting vendor selection, prices, terms, delivery, etc. Commitments and orders, to be valid, shall be authorized by the completion of a purchase requisition with valid purchase order number, followed by a purchase order appropriately signed by the Finance Director (or his/her designee) and the City Manager, if applicable. In some commitments, a letter of intent, agreement or contract shall be signed by the City Manager. 4. Interdepartnent Relations. The purchasing system cannot function properly without the cooperation and assistance of all City Departments. It shall be the policy of the City to promote an intelligent and harmonious relationship between the Finance Department and other Departments relative to procurement. The Finance Director has the authority to request reconsideration of specifications and quantity or material if in his/her opinion the interest of the City is better served. However, the final determination of quality and quantity will remain the prerogative of the requisitioning department as long as the cost is within that departments budget. 5. Purchasing Ethics. The City strives to maintain strong and enduring relationships with vendors of proven ability and those who desire to meet its needs. To accomplish this, purchasing activities will be conducted so that vendors will place a high value on City Business and make every effort to meet these requirements on the basis of quality, service and price. The avoidance of actual or apparent conflict of interest is a prime requisite to the efficient and sound operation of the City and the maintenance of the public trust. 98-R-13-Exhibit-A CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES Conduct and business relations with vendors will be as follows: a. During interviews with vendors, no employee may commit on preference for any product or service or provide information regarding performance or price which might in any way give one vendor an advantage over another vendor or embarrass the City. b. All vendors will be given a full, fair, prompt, and courteous hearing. c. An open and competitive environment will be maintained. d. Consistent buying policies and principles will be maintained. e. The confidence of the vendor and his company as to proprietary information will be respected where applicable. f The City will not obligate itself to any vendor. g. Purchasing must provide vendors an equal opportunity to submit quotes on a competitive basis. Care shall always be taken to avoid imposing on a supplier's time when it is known that bids will be requested and open to all. 6. Preference to Vendors. Preference may be given to bidders only when tie bids are involved and all other options are equal. In that case, the bidder that has provided a drug free workplace certification may be awarded the business. If a tie still exists, the City may award the bid to the bidder whose business is located the closest to the City. 7. Gifts and Gratuities. Employees are required to comply with Section XI of the City of Edgewater's Personnel Policies and Procedures Manual and Florida Statutes Chapter 112, Part III, Code of Ethics for Public Officers and Employees. 8. Bid Deposits. Bid deposits or surety may be prescribed in the public notices inviting bids. Unsuccessful bidders, shall be entitled to the return of that deposit or surety. A successful bidder, upon failure on his/her part to enter into a contract within the specified time after written notification of the bid award, shall forfeit any surety deposit with the City of Edgewater. 9. Performance and Labor & Material Bonds. The City may require a performance, material and labor bond before entering a bid -based contract, and in such amounts as shall be found necessary to protect the best interests of the City of Edgewater. 98-R-13-Exhibit-A 9 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 10. Bid Protest Bond. The City requires a protest bond when a formal bid protest is registered in reference to a City bid or request for proposal. 1. Definitions. The following is a list of definitions of purchasing terms. These terms are defined herein so as to provide a common understanding by all. Agreement A written statement accepting certain conditions and approved by the City Manager or City Council. Agreements are usually reviewed in advance by the City Attorney. Bid A quotation of price for commodity or service in response to an invitation to offer a price for commodity or service. These quotations may be formal or informal as defined herein, or by telephone. City Is the City of Edgewater, Florida. City Department Is any Department of the City. Confirming Purchase Order A purchase order issued after a purchase requisition has been completed and signed by a designated buyer and signed by the Finance Director or his/her designee. Commodity Any of the various supplies, materials, goods, merchandise, equipment and other personal property. Contract An agreement between two or more parties, and approved by the City Manager or City Council. Contracts are usually reviewed in advance by the City Attorney. 98-R-13-Exhibit-A 10 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES Designated Buyer An employee of the City authorized to make purchases. Emergency Purchase A purchase made prior to the issuance of a purchase order outside the normal purchasing procedures because of circumstances that were unforseen and could not have been anticipated. Fixed Assets Typically referred to as land, buildings, equipment, and improvements other than buildings acquired by a government for use in the provision of goods or services to citizens. These items should have a useful life of at least two years following the date of acquisition and a cost of over $1,000 per individual item. Formal bid A written quotation of price for commodity or service submitted in response to a written invitation or legal advertisement to offer a price for said commodity or service. Such quotations are submitted in a sealed envelope and opened at a specified time and place. GSA Stands for General Services Administration (Federal). Informal Bid A written quotation of price for commodity or service in response to a written or verbal "Request for Quotation" to offer a price for said commodity or service for purchases under $15,000. Invoice An itemized list submitted by a vendor showing goods and/or services rendered, date of delivery of said goods and/or services and specifying price for same. Lease A contract or agreement for rental of a commodity for a specified time and price. 98-R-13-Exhibit-A 11 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES Lease/Purchase AKA Capital lease. A contract or agreement for purchase of a commodity for a specified time. The ownership of the commodity is usually transferred to the City at the end of the term. Piggy Back The ability of one governmental entity to take advantage of another governmental entity's bid, RFP or RFQ or legally ascertained cost or professional acquisition with the consent of the vendor receiving the award. Purchase order A formal written agreement between the City and the seller to acquire goods and/or services specifying the price for same. Purchase Requisition A form completed by a designated buyer to have commodities or services purchased. Request for Proposals A written request for proposals or qualifications from interested vendors that may or may not ask for pricing information. Request for Quotation A verbal request or letter sent by a City Department to prospective vendor on contemplated purchases under $15,000 asking for price quotations. SICOP Stands for Six County Cooperative Purchasing (Lake, Volusia, Osceola, Seminole, Orange and Brevard. SNAPS Stands for State Negotiated Agreement Purchasing Schedule (State). Specifications A clear, complete and accurate statement of the technical requirements descriptive of an item and if applicable, the procedure to be followed to determine if the requirements have been met. 98-R-13-Exhibit-A 12 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES State of Florida bid Means a bid procured and awarded by the State of Florida for various commodities which Cities and Counties can purchase off of. Surplus Property Item(s) which are obsolete, junk or in excess which will be disposed of periodically by auction, salvage, trade-in, or destruction 98-R-13-Exhibit-A 13 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES This section of the manual outlines the City's purchasing procedure and the forms designed to complete it. This procedure is designed to make the procurement procedure as efficient as possible. In this regard the City Manager, Finance Director and Department Directors play important and key roles. 1. Blanket Purchase Order. Used by one department or several departments to make purchases. A Blanket Purchase Order Number is issued at the beginning or during the fiscal year for those vendors used every month for the commodities that the vendor provides. Blankets are usually issued to vendors who are sole source, convenient, contract or lease and used every month. Blankets normally should not exceed $3,000 per month. Blankets exceeding $3,000 per month will require justification. 2. Purchase Requisition. The requisition initiates the procurement cycle. The ordering department completes the requisition with all necessary information and designated buyer, Department Head, Finance Director, and/or City Manager authorization as required. If the minimum standards for the purchase have been followed and funds are available within the ordering department's budget, the designated buyer or Department Head can call the Finance Department for a purchase order number. After receiving the purchase order number from Finance, the buyer can place the order. Within two (2) days of receiving the Purchase Order Number the requisition should be turned into the Finance Department. See Attachment A: Purchase Requisition Sample and Distribution list. 3. Purchase order. The receipt of a requisition with the necessary information and required approvals gives the authority for each specific purchase and the generation of the Confirming Purchase Order. The Confirming Purchase Order will include all the information from the purchase requisition. A confirming purchase order will not be processed unless the requisition has the proper authorizations. The confirming purchase order must have the signature of the Finance Director or his/her designee. See attachment B: Purchase Order Sample and Distribution list. The Confirming Purchase Order is a legal contract. It represents an "agreement of terms" between buyer and seller. No Purchase Order will be issued without a properly assigned Purchase Order number. All purchases whether for single or multiple items will require a purchase order number. It shall be prohibited for any City Department Head or employee to order the purchase of any supplies or services, or make any contract without an authorized purchase order number. Any purchases or contracts made contrary to the provisions herein shall not be binding on the City. (Exception: Emergency Purchases.) Contracts or agreements specifically approved by the City 98-R-13-Exhibit-A 14 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES Council take precedence where conflicts exist All material returned or exchanged by a department, either for defects or for non performance, shall be directed to the Finance Department in the form of a change order with the proper paper work attached. 4. Purchases under $2,000 require one verbal quote and authority to approve rests with the Department Head. S. Request for Quotation. All purchases from $2,001 to $5,000 will require three written quotes obtained by the requesting department from qualified vendors offering the supplies, equipment, materials or services to the City. If three quotes cannot be obtained, the reason for less than three shall be documented as part of the requisition. If only one quote can be obtained, a Single/Sole Source memo must accompany the requisition. Authority for approval rests with the Finance Director. 6. Request for Quotation. All purchases from $5,001 to $15,000 requires three written quotes from at least three qualified vendors for the supplies, equipment, materials or services requested. Written request for quotation is exempt from publication of legal advertising and preparation of detailed specifications unless required by the City Manager. If less than three quotes can be obtained, the reason for less than three quotes shall be documented as part of the requisition. If only one quote can be obtained, a Single/Sole source memo must accompany the requisition. Authority for approval rests with the City Manager. 7. Competitive Sealed Bidding. A. Invitation for Bids. Where competitive sealed bidding is utilized, an Invitation for Bids shall be issued which shall include a purchase description and all contractual terms and conditions applicable to the procurement. All bids shall be submitted to the City Clerk no later than the date and time designated in the bid documents. The envelope containing the bid shall be sealed and marked according to the instructions. The City Clerk will date and time stamp each bid as it is received and file the bid unopened in a secure place until the time designated for the opening. Bids received after the designated time shall be returned unopened to the sender by the City Clerk. B. Public Notice 1. Adequate Public Notice of the Invitation for Bids shall be given a minimum of seven (7) calendar days prior to the date set forth therein for 98-R-13-Exhibit-A 15 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES the opening of bids. Such notice will include publication in a newspaper of general circulation. 2. Where it can be demonstrated that an urgent requirement for supplies or services exists, the requirement for public notice may be waived by the City manager. C. Bid Opening Bids shall be opened publicly by the City Clerk and recorded in the presence of two or more witnesses at the time and place designated in the Invitation for Bid. The amount of each bid, and such other relevant information as may be specified in the Invitation for Bid, together with the name of each bidder, shall be recorded. Bids and bid file shall be available for public inspection after ten days, or notice of award, whichever is sooner. The purpose of the bid opening is to record the bids received, not to analyze them. D. Bid Acceptance Bids shall be unconditionally accepted, except as authorized in paragraph 7E, or as outlined specifically in the bidding documents. E. Correction or withdrawal of bids Correction or withdrawal of inadvertently erroneous bids shall be permitted up to the time of bid opening. After bid opening, no changes in bid prices or other provisions shall be permitted; provided, however, the City reserves the right to reject any and all Bids, to waive technicalities, and to accept any Bid that it may deem to be in the best interest of the City. Bid evaluation and award 1. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability, such as inspection, testing, quality, workmanship, delivery and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs and total or life cycle costs, etc. The Invitation for Bids shall set forth the evaluation criteria to be used. No 98-R-13-Exhibit-A 16 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES criteria may be used in bid evaluations that are not set forth in the Invitation for Bids. 2. The contract shall be awarded to the lowest responsible and responsive Bidder whose bid meets the requirements and criteria set forth in the Invitation for Bids. In determining "lowest responsible bidder', in addition to the bid evaluation criteria above, the following may be considered. a. The ability and skill of the bidder to perform the contract. b. Whether the bidder can perform the contract or provide the supplies/services promptly, without delay or within the time specified. C. The quality of performance of previous contracts or services G. Multi -step bidding. When it is considered impractical (due to insufficient data, uncertain requirements, etc.) to initially prepare a purchase description to support an award based on price, an invitation for proposals may be issued requesting the submission of unpriced offers to be followed by an Invitation for Bids limited to those bidders whose proposals have been qualified under the criteria set forth in the invitation for bids. H. Contract Change Orders. The City Manager is authorized to issue a change order to any contract not to exceed the lesser of ten percent of the original contract amount or $15,000. Changes made to the contract that exceed ten percent of the original contract will require City Council approval. 8. Competitive Sealed Proposals. Determination of use. When the Department Head determines that the use of competitive sealed bidding is either not practical or not advantageous to the City, due to existing market conditions or the type of service/supply required, a contract may be entered into through receipt of competitive sealed proposals. Competitive sealed proposals may also be used for the procurement of professional services. 98-R-13-Exhibit-A 17 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES b. Request for proposals. Competitive sealed proposals shall be solicited through a request for proposal. C. Public Notice. Public notice of the request for proposals shall be given in the same manner as provided for competitive sealed bids. d. Receipt of proposals. Proposals shall be opened as provided in section 7C. C. Evaluation factors. The request for proposals shall state relative importance of price and other evaluation factors. I. Discussion with responsible bidders and revisions to proposals. As provided in the request for proposals, discussions may be conducted with responsible bidders who submit proposals determined to be reasonably acceptable for the purpose of clarification and to assure full understanding of, and responsiveness to, the solicitation requirements. Bidders shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submission prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing bidders, except as may be required by the Florida Public Records Law, Chapter 119, Florida Statutes. g. Award. Award shall be made to the most responsive and responsible offerer whose proposal is determined to be the most advantageous to the City, taking into consideration the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award was made. 9. Open Market Purchases Where it is determined, by policy established by the City Manager, that it is either not practical or not advantageous to the City to conduct competitive sealed bidding or competitive sealed proposals procedures, purchases may be made in the open market without newspaper or other advertisement and without strictly observing the procedures as prescribed in Section 7, Competitive Sealed Bids. Minimum number of bids -all open market purchases shall, whenever 98-R-13-Exhibit-A 18 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES feasible, be based on at least three (3) competitive bids. b. Notice inviting bids. Bids shall be solicited by: 1. Direct mail request to prospective vendors; 2. Telephone; or 3. Public notice posted in the City Clerk's office of City Hall. C. Recording. The City Clerk shall keep a record of all open market orders and the bids submitted in competition thereon and such records shall be available for public inspection after opening. d. Purchase from Federal, State, County and other Government Entity Contracts. The Department Head with the authorization of the Finance Director, City Manager or City Council as applicable, shall have the authority to purchase directly from Federal, State Bid or SNAPS contracts, County contracts, Florida Sheriffs Association contracts, Sicop Bids, or from other governmental entities contracts for cooperative purchasing. 10. Appeal of Award Decision (Protest) Any actual or prospective bidder, proposer, offerer or contractor who is aggrieved in connection with a solicitation or award of bid or contract may protest to the City Manager within seven (7) calendar days after such aggrieved person knows or should have known of the facts giving rise thereto. Said protest shall be in writing and shall state with specificity the grounds therefore and also the action requested of the City Manager. The protest shall be accompanied by a certified check or cash protest bond equal to five percent (5%) of the aggrieved vendor's bid made payable to the City of Edgewater. If the protest is rescinded, the protest bond is returned. b. The City Manager shall attempt to settle or resolve protests, with or without a hearing at the option of the City Manager. The City Manager shall render a decision, in writing, within seven (7) calendar days following receipt of the protest. No bid award will be made during this time. The decision of the City Manager shall be final and shall represent the position of the City. C. Timely filing of the protest and/or appeals is jurisdictional. If the appeal is 98-R-13-Exhibit-A 19 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES taken to court and the City's decision is reversed, the protest bond will be returned. If the appeal is taken to court and the City's decision is upheld, the protest bond is forfeited to the City as damages. d. In the event of a timely protest and/or appeal, the City shall not proceed further with the solicitation or with the award of the bid/contract unless the City Manager, after consultation with the head of the using Department, forwards to the City Manager a written request to award the contract without delay in order to protect the public health, welfare or safety. 11. Convicted Vendor All Invitations to Bid as defined by Section 287.012 (11), Florida Statutes, Request for Proposals, as defined by Section 287.012 (16), Florida Statutes, and any contract document described by Section 287.058, Florida Statutes (or any of these referenced Statutes as they may be amended from time to time) shall contain a statement informing persons of the provision of paragraph (2)(a) of Section 287.133, Florida Statutes, which reads as follows: "A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity, may not submit a bid or a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, for CATEGORY TWO (currently $15,000) for a period of 36 months from the date of being placed on the convicted vendor list". All Vendors who submit a Bid or Request for Proposal to the City of Edgewater, - are guaranteeing that they have read the previous statement, and by signing the bid documents, are qualified to submit a bid under Section 287.133, (2) (a) Florida Statutes. 12. Authority to Debar or Suspend a. Authority. After reasonable notice to the person involved and reasonable opportunity for that person to be heard, the City Manager, after consultation with 98-R-13-Exhibit-A 20 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES the City Attorney or his/her designee, shall have authority to suspend/debar a person/company from consideration for award of bids/contracts if there is sufficeint cause. The suspension shall not exceed a maximum period of three (3) years. b. Causes for deparment or suspension. The causes for debarment or suspension include, but are not limited to the following: 1. Conviction or commission of a criminal offense incident to obtaining or attempting to obtain a public or private contract or subcontract or incident to performance of such contract or subcontract. 2. Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving of stolen property or any other offense indicating a lack of business integrity or business honesty which currently, seriously and directly affects responsibility as a City contractor or potential City contractor. 3. Conviction under state or federal antitrust statutes arising out of the submission of bids or proposals. 4. Violation of bid/contract provisions, as set forth below, of a character which is regarded by the City Manager to be so serious as to justify suspension or debarment. a. Deliberate failure without good cause to perform in accordance with the specification or within the time limit provided in the bid/contract, or b. A recent record of failure to perfrom or of unsatisfactory performance in accordance with the terms of one or more bids/contracts, provided that failure to perform or unsatisfactory performance caused by acts beyond the control of the person or company shall not be considered to be a basis for suspension/debarment. 5. Any other cause/material factor which adversely affects the responsibility of a person as a City contractor or potential City contractor, including suspension/debarment by another governmental entity for any of the causes listed in this section. 98-R-13-Exhibit-A 21 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 6. Refutation of a bid/contract by failure to provide bonds, insurance, or other required certificates within a reasonable time period. 7. Refusal to accept an addendum, agreement or contract, or to perform thereon, provided such adendum, agreement or contract was issued timely and in conformance with the bid received. 8. Overall performance of a construction contract which has been evaluated in writing as "poor" or `unsatisfactory". 9. Presence of principals or corporate officers in the business or concern, who were principals or corporate officers within another business at the time when the other business was suspended or debarred within the last five (5) years under the provisions of this section. 10. Violation of the ethical standards set forth in the City, State and Federal law. C. Decision. A decision to suspend or debar shall be in writing and shall: 1. State the period of suspension/debarment. 2. State the reasons for the action taken. 3. Inform the suspended or debarred person involved of his/her right to administrative or judicial review as provided in this section. d. Notice of Decision. A copy of the decision under this section shall be mailed or otherwise furnished immediately to the suspended or debarred person and any other affected party C. Maintenance of List of Debarred and Suspended Persons. The Finance Department shall maintain and update a list of debarred and suspended persons. All political subdivisions of the State may be supplied with this list and the Finance Department may send updates of this list to all political subdivisions of the State as necessary. Such list shall be available to the public upon request. 98-R-13-Exhibit-A 22 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 13. Hearing procedure for debarment and suspension of person. A. Right of Appeal. A decision of the City Manager to debar/suspend a contractor may be appealed to the City Council. Within seven (7) calendar days from the receipt of the decision by the City Manager, a written request may be submitted to the City Clerk requesting a hearing before the City Council. B. Hearing Date. Within thirty (30) calendar days from the receipt of the notice of appeal, the City shall schedule a hearing before the City Council, at which time the person shall be given the opportunity to demonstrate why the decision of the City Manager should be overturned. C. Hearing Procedure. The procedure for any hearing required by this article shall be as follows: 1. The City shall cause to be served upon the person a notice of hearing stating the time and place of the hearing. The notice of hearing shall be sent by certified mail, return receipt requested, to the mailing address of the person. 2. The person shall have the right to be represented by counsel, to call and examine witnesses, to introduce exhibits and to cross-examine opposing witnesses. 3. In any hearing before the City Council, irrelevant, immaterial or unduly repetitious evidence shall be excluded. All other evidence of a type commonly relied upon by reasonable prudent persons in the conduct of their affairs shall be admissible whether or not such evidence would be admissible in a trial in the courts of Florida. D. Notice of Decision. A copy of the City Council's decision under this section shall be mailed or otherwise furnished immediately to the person and any other affected party. E. Finality of Decision. Any decision under this section shall be final and conclusive upon the person. Authority to resolve contract and breach of contract controversies. 98-R-13-Exhibit-A 23 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES 1. Applicability. This section applies to controversies between the City and a Contractor which arise under or by virtue of a contract between them. This includes, without limitation, controversy based upon breach of contract, mistake, misrepresentation or other cause for contract modification or recision. 2. Authority. a. The City Manager shall settle or resolve controversies arising under this section. b. Nothing in this policy shall be construed to restrict the City Manager from simultaneously resolving controversies arising under this section and suspending/debarring a contractor. 3. Right to Appeal -The procedure for appeal of decisions of the City Manager under this section shall be the same as that set forth in section 13. G. Other Remedies. Nothing in this section shall limit the City from pursuing other legal or contractual rights or remedies against the person. 14. Florida Statutes References (Current and as may be amended from time to time. Amended Statutes will take precedence over the following descriptions.) A. Section 286.011, Florida Statutes -Florida government in the Sunshine Law requires meetings be open to the public. Selection committee for award of bids or proposals established by City Council are governed by this law. B. Section 218.80, Florida Statutes -The Public Bid Disclosure Act states that any City or County permits or fees which are not disclosed in the bid or proposal or contract document shall not be accessed or collected after the contract is let. The City or County cannot halt or delay construction in order to collect any permits or fees which were not provided for or specified in the bidding proposal or contract documents C. Section 287.055, Florida Statutes. "Consultants Competitive Negotiation Act". D. Public Entity Crimes: Sections 287, 132-133, Florida Statutes. Required the Florida Department of Management to maintain and make available to other political entities a "convicted vendor" list consisting of persons and affiliates who are disqualified from public contracting and purchasing process because they have been found guilty of a 98-R-13-Exhibit-A 24 CITY OF EDGEWATER PURCHASING POLICIES AND PROCEDURES public entity crime, with or without adjudication of guilt, in any federal or state trial court of record relating to, but not limited to any bid or contract for goods or services provided to any public entity or with an agency or political subdivision and involved antitrust, fraud, theft, bribery, collusion, racketerring, conspiracy, or material misrepresentation. By law no public entity shall accept any bid from, award any contract to, or transact any business in excess of the threshold amount provided in Section 287.017, Florida Statutes, for category two (currently $15,000) with any person affiliate on the convicted vendor list for a period of 36 months from the date that person or affiliate has been removed from the list pursuant to section 287.133, Florida Statute. Therefore, before submitting a bid, a request for proposal or request for qualifications, each bidder acknowledges reading the Public Entity Crimes Statute, and verifies that their company is eligible to submit a bid or request for proposal or qualifications. A copy of this statute shall accompany each bid request for proposal or qualification. 98-R-II-Exhibit-A 25