Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Agenda 12/10/2013 Item #17J
12/10/2013 17.J. EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners enacts a new Purchasing Ordinance, and that until a Purchasing Manual is approved by the Board, that the present Purchasing Policy with respect to all purchases under $50,000 continue in full force and effect, as amended by this Ordinance. OBJECTIVE: To enact a new Purchasing Ordinance. CONSIDERATIONS: This item has its genesis in an Executive Summary brought by Commissioner Hiller during the February 12, 2013 Board meeting. The Board's direction was for the County Attorney to work with Staff and the Clerk and bring back a Purchasing Ordinance for the Board's review and consideration. Numerous meetings and discussions have been held since that time. The process was as follows. First, I took the entire current Purchasing Policy and simply put it into Ordinance form. Accordingly, the great bulk of the Purchasing Ordinance is the current Purchasing Policy. Thereafter, both County staff and members of the Clerk's Office made a number of changes,the majority of which were agreed to. The Board held its first reading of this Ordinance on November 12th. A number of items of disagreement were aired between staff and the Clerk. A copy of the transcript of the Board's discussion is attached. In keeping with Board direction, I made the following substantive changes to the proposed Ordinance, and advertised the ordinance for this hearing: SECTION SEVEN: Purchases in General. The Board shall, prior to payment, approve all expenditures with a finding that such expenditures serve a valid public purpose. SECTION EIGHT: Purchases under$50,000 The process for making purchases under $50,000 shall be set forth in detail in the Purchasing Manual. At a minimum: 1. A purchase shall not be artificially divided or split so as to qualify under this or any other section of this Purchasing Ordinance. Purchases under $1,000 will generally be processed using a regular purchase order, or, a purchasing card in accordance with Section 27 of this Purchasing Ordinance. 2. Operating department staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not available, staff will procure the highest quality items or services at the least expense to the County after approval by the Purchasing Director. Only the Board's Purchasing staff may issue a qualification based solicitation. Packet Page-2721- 12/10/2013 17.J. _ • I' • 111 in the Purchasing Manual. At a minimum, a purchase shall not be artificially divided or split so as to qualify under this or any other section of this Purchasing Ordinance. Operating department staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not available, staff bvill pfec- - -- -•_ - - -- - • - . - •- . process: quotation a f llow;: 1.Minimum Number Quotes: Open market purchases or sales in excess of$3,000 but less than or equal to $50,000 shall be based on a good faith effort under 2.Solicitation of Quotes: Open market sale or price quotes may be solicited in tendered or confirmed in writing or electronically by the vendor prior to purchase. Quote information will be reviewed and approved by the Purchasing Director . 3.Public Record: The Purchasing Director shall maintain records of all open market quotes according to public records law. Such records shall be open for public inspection after award has been made. B.The requirements for requesting quotes from three (3) or more sources may be waived by the Board of County Commissioners to the extent authorized by law for: 9 . . - - - -•- . . . . . . . . . - 2.Professional services; and, in instances where commodities or services are purchased directly from the owner of a cepyright or patent, a governmental agency, a recognized educational institution, or when there are no other identifiable sources available. single source purchases. 2 Packet Page-2722- 12/10/2013 17.J. '1.Valid public emergencies or other exigent instances deemed by the County Manager pursuant to Section 25. 5.Purchasc of services from experts or consultants by or through the Office of the County Attorney for purposes of preparing for or defending against imminent or pending civil litigation or administrative proceedings. SECTION TWENTY-FIVE: Exigent Circumstances, Emergency and Board Absence Purchases. In case of an exigent circumstance, which is defined as any circumstance requiring immediate action or attention, valid public emergency or during the Board's extended recess session(s) whereby a purchase may exceed the threshold outlined in Section 9 the County Manager shall authorize the Purchasing Director to secure by open market procedure as herein set forth, any commodities or services. The County Manager shall have the authority to take actions including, but not limited to the issuance of contracts, change orders, and/or supplemental agreements. Any action shall be reported at the first available meeting of the Board of County Commissioners. The County Manager under the same consultations noted above shall further be authorized to approve payment(s) to vendors at the time of or shortly after purchase should the circumstances warrant. These payments shall be reported at the first available meeting of the Board. This section in no way constrains the provisions of Collier County's Civil Emergency ordinances or powers and authority pursuant to Fla. Stat. ch. 252, Emergency Management. ************************************************************* With respect to the Local Vendor Provision, after speaking with the Chair, I eliminated staff's proposed alternative. The proposed Ordinance thus contains the Board's current approved local vendor policy. Any future proposed changes to this policy can be brought forth in the customary manner. Eliminating both provisions as directed by the Board would have meant that the County would not have any Local Vendor Policy in place until future action, which I do not believe was the Board's intent. If that was indeed the Board's intent, the provision can be eliminated on motion. After forwarding all parties the Ordinance as revised above, additional discussions between staff and the Clerk's Office were held. A copy of the Ordinance showing additional changes requested by the Clerk, together with staff comments, is attached. All agreed upon points were then included within the proposed Ordinance. There remained a number of other requested changes that were not agreed to by staff. Of these, there are two provisions that remain contentious. The first provision is as follows: 3 Packet Page-2723- 12/10/2013 17.J. SECTION TWENTY-SEVEN: Purchasing Card Program. D. Sales Tax Compliance: Pursuant to Section 212.08(6), F.S., County purchases transacted with vendors within the State of Florida are exempt from the state sales and use tax. In such instances, it is the responsibility of the cardholder to provide the vendor with the appropriate tax exemption information when the card is presented to the vendor. In the event that the cardholder fails to provide the vendor with the appropriate tax exemption information when the card is presented the cardholder may be responsible for payment of the tax. It is the position of the Board that it is not cost effective or in the public interest to require a cardholder to seek a credit for sales tax collected when the total sale does not exceed $300. In the event that the total sale exceeds $300, the cardholder's Director is responsible to ensure the tax is returned to the County for the purchase. In all such instances, the Purchasing Director shall ensure that the purchase has been approved subject to all other provisions of this policy. All fixed assets purchased using a purchasing card shall be properly reported to the Fixed Assets Section of the Clerk of Courts Finance Division so that it can be properly recorded. There is no need for this provision to be in an Ordinance. Accordingly, I have removed it. If staff and/or the Clerk feel the need to address this issue (and Sales Tax is purely a matter of State Statute, so it need not be addressed), then the issue can be restated and made part of the Purchasing Manual. The second provision is as follows: SECTION SIXTEEN: Payment of Invoices. B. The County Manager shall establish and maintain procedures that authorize minor payment variances between the purchase order and invoice where warranted. The authority to pay such variances shall not exceed 5% of the purchase order amount or$500, whichever is less. There is no need for this provision to be in an Ordinance either. Accordingly, I have removed it. If staff and/or the Clerk feel the need to address this issue, then the matter can be restated and made part of the Purchasing Manual. FISCAL IMPACT: May require additional Purchasing staff to implement. GROWTH MANAGEMENT IMPACT: None. Amok 4 Packet Page-2724- 12/10/2013 17.J. RECOMMENDATION: That the Board of County Commissioners enact the proposed Purchasing Ordinance, and that until a Purchasing Manual is approved by the Board, that the present Purchasing Policy with respect to all purchases under $50,000 continue in full force and effect, as amended by this Ordinance. Prepared by: Jeffrey A. Klatzkow, County Attorney Attachment: Proposed Ordinance, Transcript of November 12th Board Discussion. 5 Packet Page-2725- 12/10/2013 17.J. COLLIER COUNTY Board of County Commissioners Item Number: 17.17.J. Item Summary: Recommendation that the Board of County Commissioners enacts a new Purchasing Ordinance, and that until a Purchasing Manual is approved by the Board,that the present Purchasing Policy with respect to all purchases under$50,000 continue in full force and effect, as amended by this Ordinance. Meeting Date: 12/10/2013 Prepared By Name:NeetVirginia Title: Legal Assistant/Paralegal,County Attorney 12/2/2013 12:35:53 PM Approved By Name: KlatzkowJeff Title: County Attorney Date: 12/4/2013 3:08:59 PM Name: KlatzkowJeff Title: County Attorney Date: 12/4/2013 3:28:33 PM Name: IsacksonMark Title: Director-Corp Financial and Mgmt Svs,CMO Date: 12/4/2013 3:38:17 PM Name: OchsLeo Title: County Manager Date: 12/4/2013 4:46:25 PM Packet Page-2726- 12/10/2013 17.J. ORDINANCE NO. 2013 - AN ORDINANCE REPEALING ORDINANCE 87-25 AS AMENDED, WHICH ORDINANCE ESTABLISHED THE COLLIER COUNTY PURCHASING DEPARTMENT AND ADOPTED A PURCHASING POLICY, AND REPLACING IT WITH THIS NEW ORDINANCE, TO BE KNOWN AS THE COLLIER COUNTY PURCHASING ORDINANCE, WHICH ORDINANCE SETS FORTH ITS PURPOSE AND APPLICABILITY; PROVIDES FOR DEFINITIONS; ESTABLISHES AND SETS FORTH THE DUTIES OF A PURCHASING DEPARTMENT AND PURCHASING DIRECTOR; PROVIDES FOR A PURCHASING MANUAL; PROVIDES FOR PURCHASES UNDER $50,000, AND FOR PURCHASES OVER $50,000; PROVIDES FOR A COMPETITIVE BID PROCESS, THE PROCUREMENT OF PROFESSIONAL SERVICES, COMPETITIVE PROPOSALS, AND PROCUREMENT OF DESIGN-BUILD CONTRACTS; ESTABLISHES POLICIES FOR SMALL AND DISADVANTAGED MINORITY AND WOMEN BUSINESS ENTERPRISES AND FOR PREFERENCE TO LOCAL BUSINESSES; PROVIDES FOR PAYMENT OF INVOICES AND ADVANCE PAYMENTS FOR GOODS AND SERVICES; PROVIDES FOR PROCUREMENTS BASED ON STANDARDIZATION, COOPERATIVE PURCHASING ORGANIZATIONS AND GOVERNMENT CONTRACTS; SETS FORTH A PROCEDURE FOR CONTRACT ADMINISTRATION AND FOR BONDS; PROHIBITS UNAUTHORIZED PURCHASES INCLUDING SUBDIVIDING PURCHASES; SETS FORTH A PROCEDURE FOR BID PROTESTS AND CONTRACT CLAIMS; PROVIDES FOR PURCHASES DURING EXIGENT CIRCUMSTANCES, EMERGENCIES AND BOARD RECESS PERIODS; PROVIDES FOR INSPECTING AND TESTING; PROVIDES FOR SURPLUS PROPERTY; PROVIDES FOR A PURCHASING CARD PROGRAM; PROHIBITS CONFLICT OF INTERESTS; SETS FORTH A PROCEDURE FOR THE DEBARMENT AND SUSPENSION OF VENDORS; AUTHORIZES THE BOARD TO WAIVE THESE PROVISIONS WHEN APPROPRIATE; AND LASTLY PROVIDES FOR CONFLICT AND SEVERABILITY, INCLUSION INTO THE CODE OF LAWS AND ORDINANCES,AND AN EFFECTIVE DATE. WHEREAS,the Board of County Commissioners (the Board) desires to seek the maximum value for the County by procuring the best value in obtaining commodities and contractual services; and WHEREAS, the Board must approve all purchases for valid public purpose and approve all expenditures; and WHEREAS, obtaining as full and open competition as possible on all purchases and contracts and maximizing volume discounts by consolidating purchases and buying "in bulk" when practical serves to further the County's goals and is in the best interest of the taxpayers of Collier County: and 1 Packet Page-2727- 12/10/2013 17.J. WHEREAS, the Board of County Commissioners desires to ensure the County receives all tax exemptions to which it is entitled; and WHEREAS, it is in the best interests of the County for all its agencies and departments to cooperate so as to secure maximum efficiency. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA,that: SECTION ONE: Title and Citation. This Ordinance shall be known and may be cited as the "Collier County Purchasing Ordinance" or "Purchasing Ordinance." SECTION TWO: Purpose. The purpose of this Purchasing Ordinance is to codify and formalize Collier County's Purchasing Policy, to provide for the fair and equitable treatment of all persons involved in public purchasing by the County, to maximize the purchasing value of public funds in procurement, and to provide safeguards for maintaining a procurement system of quality and integrity. Any provision of this Ordinance in conflict with statute is null and void as to the conflict. SECTION THREE: Applicability. (a) This Purchasing Ordinance applies to the procurement of goods and services by the County after the effective date of this Purchasing Ordinance. This Purchasing Ordinance shall apply to all expenditures of public funds by the Board of County Commissioners for public purchasing, irrespective of the source of the funds. Nothing in this section shall prevent the County from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with law. (b) Nothing contained herein shall be construed as requiring Collier County's Constitutional Officers (Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector), Court Administration, State Attorney, Public Defender or the Collier County Metropolitan Planning Organization non-county funds to be covered by the provisions of this Purchasing Ordinance. However, the services of the Collier County Purchasing Department and Purchasing Director may be made available for consultation. SECTION FOUR: Definitions. Agency shall mean all departments, divisions, units and offices under the Board of County Commissioners, including the Collier County Redevelopment Agencies, the Collier County Airport 2 Packet Page-2728- 12/10/2013 17.J. Authority, Collier County Water Sewer District and all departments under the auspices of the -- County Manager. Change Order shall mean a written order by a project manager, approved by the Purchasing Director and the Board of County Commissioners, directing the contractor to change a contract's amount, requirements, or time. All changes must be within the original scope of the contract and in accordance with the Board approved contract's changes clause or,if no such clause is set forth within the agreement, in accordance with this Purchasing Ordinance. Consultant/Contractor/Supplier/ Vendor shall mean a provider of goods or services to the County agency. These terms may be used interchangeably. Continuing Contract shall mean a contract for professional services with no time limitation except that the contract must include a termination clause. Continuing contracts must contain sufficient details of goods and services to be procured for proper audit. County shall mean Collier County. County Manager shall mean the County Manager or County Administrator of Collier County, or designee, as defined in the County Administration Law of 1974, Ch. 125, Part III, Florida Statutes. Disadvantaged Business Enterprise shall mean a small business concern certified by the of Transportation to be owned and controlled by socially and economically disadvantaged individuals as defined by the Surface Transportation and Uniform Relocation Act of 1987. Extension shall mean an increase in the time allowed for the contract period due to circumstances which make performance impracticable or impossible, or which prevent a new contract from being executed. An extension must be in writing, and may not change the contract's amount or requirements unless provided for in the original solicitation, contract, or as otherwise stated in this Ordinance. Fixed Term Contract is one in which the purchase of commodities or services are available for use Countywide by all agencies as deemed necessary in instances where it is impracticable to establish definitive quantities, ordering schedules, or the details of the specific work to be performed in advance of establishing the contracts(s). Typically, the term and fee schedules are fixed for a period of time. These contracts are often implemented by purchase orders or work orders and may be awarded to multiple firms. Invitation to Bid shall mean a written or electronic solicitation for sealed competitive bids with the title, date, and hour of the public bid opening designated and specifically defining the commodity, group of commodities, or services for which bids are sought. It includes instructions prescribing all conditions for bidding and will be distributed to registered bidders simultaneously. The invitation to bid shall be used when the agency is capable of specifically defining the scope of work for which a contractual service is required or when the agency is capable of establishing precise specifications defining the actual commodity or group of commodities required. 3 Packet Page-2729- 12/10/2013 17.J. Invitation to Negotiate shall mean a written or electronically posted solicitation for competitive scaled replies to select one or more vendors with which to commence negotiations before the procurement of commodities or contractual services. The invitation to negotiate is a solicitation used by an agency which is intended to determine the best method for achieving a specific goal or solving a particular problem and identifies one or more responsive vendors with which the agency may negotiate in order to receive the best value. Lowest responsive bid shall mean a bid submitted by the apparent lowest, qualified and responsive bidder whose bid response meets the needs of the County, as set forth in the invitation to bid. Minority business enterprise shall have the same definition as set forth in Florida Statutes Sec. 288.703, as amended from time-to-time, which presently means any small business concern as defined below which is organized to engage in commercial transactions, which is domiciled in Florida. and which is at least 51-percent-owned by minority persons who are members of an insular group that is of a particular racial, ethnic, or gender makeup or national origin, which has been subjected historically to disparate treatment due to identification in and with that group resulting in an underrepresentation of commercial enterprises under the group's control, and whose management and daily operations are controlled by such persons. For purposes of this definition, "small business" means an independently owned and operated business concern that employs 200 or fewer permanent full-time employees and that, together with its affiliates, has a net worth of not more than $5 million or any firm based in this state which has a Small Business Administration 8(a) certification. As applicable to sole proprietorships, the $5 million net worth requirement shall include both personal and business investments. Purchase or procurement shall mean the acquisition of goods or services. Purchasing Card shall mean a credit card officially assigned to specific employees under the purview of the Board of County Commissioners for the purpose of transacting small and/or strategic purchases. Purchase Order shall mean a contract which encumbers appropriated funds and which is directed to a single vendor to furnish or deliver commodities or services to the County. Purchasing Director is the Purchasing Director of Collier County. Purchasing Manual shall mean the Board of County Commissioners' adopted administrative procedures for implementing this Purchasing Ordinance. Purchasing Policy or Policies shall mean the purchasing practices and procedures outlined in this Purchasing Ordinance. Qualified proposer shall mean a proposer who has the capability to perform the services outlined in the request for proposal, and has the integrity and reliability which will assure good faith performance. 4 Packet Page-2730- 12/10/2013 17.J. Renew al shall mean contracting with the same contractor for an additional contract term, only if pursuant to contract terms specifically providing for such renewal and prior to the expiration of the prior term. Request for Proposal shall mean a written or electronic solicitation for sealed proposals with the title, date, and hour of the submission deadline designated. A request for proposal includes, but is not limited to, general information, applicable laws and rules, functional or general specifications, statement of work, proposals instructions, and evaluation criteria. An agency shall use a request for proposals when the purposes and uses for which the commodity, group of commodities, or contractual service being sought can be specifically defined and the agency is capable of identifying necessary deliverables. Various combinations or versions of commodities or contractual services may be proposed by a responsive vendor to meet the specifications of the solicitation document. Responsive bidder or proposer shall mean a person or entity that has submitted a bid or proposal which conforms in all material respects to the invitation to bid, request for proposals, or other methods of formal solicitation. Single source refers to situations in which only one vendor is chosen to provide the goods or services because of its specialized or unique characteristics. Sole source is when there is only one vendor capable of providing a good or service. Standardization shall mean the adoption or selection of a common commodity (commodities), service(s), or a system(s) to be used by one or more County agencies to promote the cost-effective delivery of services. Woman Business Enterprise shall have the same definition as Minority business enterprise, excepting that the small business concern is at least 51-percent-owned by a woman or women. Work Order is a contract instrument issued under the terms and conditions of an approved continuing or fixed term agreement,which authorizes a contractor or consultant to perform a specific task within the broader scope of the master agreement. Nothing in the work order shall conflict with the terms and conditions of the fixed term contract, and all work done must fall within the scope and term of the underlying agreement. SECTION FIVE: Establishment of Purchasing Department and Purchasing Director. 1. There is hereby established the Collier County Purchasing Department, which shall be a distinct administrative department under the direction of the County Manager. 2. The Purchasing Director of the Purchasing Department shall have the authority to negotiate all purchases for all Agencies except as required by State, Federal or Local Law. In keeping with Chapter 125, Florida Statutes, this Purchasing Ordinance grants to the Purchasing Director only those powers and duties which are ministerial in nature and does not delegate any governmental power imbued in the Board of County Commissioners as the governing body of the County pursuant to Fla. Const. Art. VIII, § 1(e). To this end, the below specifically enumerated powers are 5 Packet Page-2731- 12/10/2013 17.J. to be construed as ministerial in nature, for the purpose of carrying out the Board's directives and policies. SECTION SIX: Duties of Purchasing Department. Within the constructs of this Ordinance, the Purchasing Department shall be responsible for: 1. Seeking Maximum Value: Acting to procure for the County the highest quality commodities and contractual services at least expense to the County. 2. Encouraging competition: Endeavoring to obtain as full and open competition as possible on all purchases, services and sales. 3. Purchasing Analysis: Keeping informed of current developments in the field of purchasing, prices, market conditions and new products, and securing for the County the benefits of research conducted in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition, and by private business and organizations. 4. Purchasing Manual: Preparing and recommending for adoption by the Board of County Commissioners administrative procedures for the Agency known as a Purchasing Manual for the implementation of this Purchasing Ordinance. In keeping with Ord. No. 2004-66, such procedures shall be made part of the Collier County Administrative Code, with all adoptions, amendments, additions, revisions, or modifications made by resolution of the Board. The Purchasing Manual shall be maintained and published on-line for the benefit of the public. �. Forms: Prescribing and maintaining such forms to implement this Purchasing Ordinance and Purchasing Manual. 6. Non-Contract Purchases: Reviewing non-contract purchases under $50,000 to determine if an aggregated contract approach may provide value and offer pricing advantages to the County. 7. Tax Exemption: Procuring items for the County to exercise its tax exemption status when eligible. 8. Suspension and Debarment of Vendors: Overseeing and facilitating the suspension and/or debarment of vendors as set forth below. 9. Inquiry and Control: Full authority to: a. Question the quality, quantity, and kinds of items requisitioned in order that the best interests of the County are served; b. Ensure the timely, proper and orderly acquisition of services to the various operating departments; c. Ensure purchases are consistent with the Purchasing Ordinance; 6 Packet Page-2732- 12/10/2013 17.J. d. Determine if specific purchases should be approved by the Board prior to the Arok purchase; and, e. Delegate Purchasing Director authority granted by this Purchasing Ordinance in whole or in part to Purchasing Department staff members. SECTION SEVEN: Purchases in General. The Board shall, prior to payment, approve all expenditures with a finding that such expenditures serve a valid public purpose. SECTION EIGHT: Purchases under$50,000 The process for making purchases under $50.000 shall be set forth in detail in the Purchasing Manual. At a minimum: 1. A purchase shall not be artificially divided or split so as to qualify under this or any other section of this Purchasing Ordinance. Purchases under $1,000 will generally be processed using a regular purchase order, or, a purchasing card in accordance with Section 27 of this Purchasing Ordinance. 2. Operating department staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not available, staff will procure the highest quality items or services at the least expense to the County after approval by the Purchasing Director. Only the Board's Purchasing staff may issue a qualification based solicitation. SECTION NINE: Formal Competitive Threshold (Purchases in Excess of$50,000). A It is the intent of the Board of County Commissioners to establish an amount of fifty thousand dollars ($50,000) as the County's threshold for formal competitive purchases. All such purchases shall be accomplished by competitive sealed bid, by competitive selection and negotiation (per Section 11) or by competitive proposals (per Section 12). Award of contracts shall be made by the Board to the lowest, qualified responsive bidder except where otherwise provided for in this Purchasing Ordinance or unless an exception is granted by the Board. Bid limits for requirements utilizing federal or state funds will be those required by said agency granting the funds or the County's requirements, whichever is more restrictive. All formal competition shall be procured under the supervision of the Purchasing Director. B. The requirement for formal competition may be waived by the Board of County Commissioners where permitted by law, under the following circumstances: 1. Purchase of library books, education and/or personnel tests, similar audio visual materials, periodicals, printed library cards, or other statutorily authorized exceptions. 7 Packet Page-2733- 12/10/2013 17.J. 2. Sole source purchases or single source purchases (pursuant to subsection D). 3. Valid public emergencies (pursuant to Section 25). 4. Where it is determined to be in the best interests of the County to do so. C. All purchases subject to formal competition shall be awarded by the Board of County Commissioners. D. Exemption For Single Source Commodities: Purchases of commodities and services from a single source may be exempted by the Board of County Commissioners from formal competition upon certification by the Purchasing Director of one the following conditions: 1. The item(s) is the only one available that can properly perform the intended function(s); 2. The recommended vendor/contractor is the only one ready, willing and able to meet the County's requirements; or 3. The requested exemption is in the County's best interest. E. Use of Past Performance Data: In order to promote the quality delivery of commodities and services. County departments shall record and consider the past performance of vendors in the award of contracts exceeding the competitive threshold. This objective shall be accomplished as follows: 1 . The Purchasing Department shall be responsible for each of the following: a. Developing, implementing and maintaining administrative procedures, instructions and technologies necessary to collect past vendor perfoiinance data. b. Ensuring that relevant past performance data is properly gathered and considered prior to award of subsequent contracts. 2. Operating departments shall be responsible for each of the following: a. Conducting periodic performance evaluations of vendors under contract with the County pursuant to the procedures established in subsection 9.E.1 a. b. Considering the past performance of vendors during the evaluation of bids and proposals pursuant to the procedures established in subsection 9.E.1 b. F. Bidders and proposers competing for a prospective award (and their agents/representatives) will not be permitted to publicly or privately address the Board or individual Board members regarding a prospective purchase prior to the time of award unless requested to do so by the Purchasing Director or by a majority vote of the Board. 8 Packet Page-2734- 12/10/2013 17.J. SECTION TEN: Competitive Bid Process. lA, A. Notice Inviting Bids: 1. Announcement: Notice inviting bids shall be publicly posted by the Purchasing Department in a consistent public location at least ten(10) days preceding the last day established for the receipt of bid proposals. Specific projects or grants may require longer posting periods, in those instances the specific requirements would be used. Bids may be solicited and/or received in one or more steps as permitted by law and deemed appropriate by the Purchasing Director. 2. Scope of Notice: The public notice required shall include a general description of the commodities/services to be purchased or sold, the bid instructions and specifications, and the time and place for opening bids. 3. Bidders' List: The Purchasing Director shall also solicit sealed bids from qualified prospective vendors/contractors who have registered their names on the Collier County Purchasing Department vendor database, which will electronically send them a notice of the proposed purchase or sale. Notices sent to the vendors/contractors on the Collier County Purchasing Department vendor database shall be limited to commodities or services that are similar in character and ordinarily handled by the trade group to which the notices are sent. Vendors/contractors are responsible for maintaining their company information profiles in the database to ensure proper notifications are received. Vendors/contractors may be suspended from the database by the Purchasing Director for continual non-response to formal solicitations and violations of the Purchasing Ordinance. The Purchasing Director may continue to issue formal solicitations and accept formal bids, proposals and other tenders using paper where appropriate. 4. Bid Deposits: When deemed necessary by the Purchasing Director, bid deposits shall he prescribed in the public bid notices. Said deposits shall be in the amount equal to five percent of the bid offer submitted unless a greater amount is required. The Purchasing Director shall have the authority to return the deposits of all bidders upon award and approval of the contract by the Board of County Commissioners. A successful bidder shall forfeit any deposit required by the Purchasing Director upon failure on the vendor's part to enter into a contract within ten (10) working days after v ritten notice of award. 5. Bid Addenda: An addendum to a specification shall be defined as an addition or change in the already prepared specifications for which an invitation has been issued for formal quotations or an announcement has been posted for a formal sealed bid. Any addendum to a request for formal sealed bids shall be approved by the Department Purchasing Director. The addendum shall clearly point out any addition or change to the invitation for bids. The Purchasing Department shall be responsible for assuring that addenda are available on the on-line bidding website and that all prospective bidders who have downloaded specifications are notified of the addendum prior to opening of bids. 9 Packet Page -2735- 12/10/2013 17.J. B. Procedure for Bids: 1. Sealed Bids: Sealed bids shall be submitted manually or electronically to the Purchasing Director. 2. Opening: Bids shall be opened publicly at the time and place stated in the public notices and shall be opened and witnessed by the Purchasing Department. 3. Tabulation: A tabulation of all bids received shall be made either electronically or manually by the Purchasing Department and shall be available for public inspection pursuant to Fla. Stat. Sec. 119.07. C. Tie Bids: Where there are low tie bids, the award process shall first be subject to Fla. Stat. Sec. 287.087. In the event that all of the tied bidders comply with Fla. Stat. Sec. 287.087, the Purchasing Department shall determine if any of the bidders would be considered a local business as defined under Section 15 of this Purchasing Ordinance. If one (and only one) of the bidders is determined to be a local business, then award of contract shall be made to that bidder. In the event that two or more local bidders are tied thereafter, award of contract shall be made in accordance with Section 15 (2)(b) of this Purchasing Ordinance. D. Rejection of Bids and Negotiation: 1. The Board of County Commissioners shall have the authority to reject any and all bids. 2. Subsequent to applying the procedures set forth under Section 15(2) (b) (where applicable), if the lowest, responsive bid exceeds the budgeted amount and, if the purchase is not funded in whole or in part with interagency grant dollars, the Purchasing Director may negotiate changes with the apparent lowest qualified and responsive bidder that will bring prices into budgeted limits subject to the final approval and acceptance of the Board. If the budgeted amount includes grant funds, the Purchasing Director shall be authorized to conduct such negotiations provided said actions are not prohibited by law or the grant conditions. 3. If no bid is received, the Board of County Commissioners may authorize the Purchasing Director to purchase by negotiation under conditions most favorable to the public interest and when said purchase will result in the lowest ultimate cost of the commodities or services obtained. E. Waiver of Irregularities: The Board of County Commissioners shall have the authority to waive any and all irregularities in any and all formal bids within lawful guidelines. F. Award of Contract: The Chair or Vice Chair in the Chair's absence, when authorized by majority vote of the Board.. shall execute formal contracts having a binding effect upon the County. A formal contract shall be awarded by the Board of County Commissioners to the lowest, qualified responsive bidder. In addition to price the following may be considered: 10 Packet Page-2736- 12/10/2013 17.J. Aomok 1. The ability, capacity and skill of the bidder to perform the contract. 2. The ability of the bidder to perform the contract within the time required or the least time, if appropriate, without delay or interference. 3. The experience and efficiency of the bidder. 4. The quality and performance of previous contracts awarded to the bidder. 5. The previous and existing compliance by the bidder with laws and ordinances relating to the proposed contract. 6. The quality, availability and adaptability of the commodities or contractual services to the particular use required. 7. The ability of the bidder to provide future maintenance and service (where applicable). 8. Prior litigation or administrative proceedings against the County where the bidder or the bidder's principal was a party. 9. Prior litigation or administrative proceedings involving the bidder or bidder's principal. All recommendations for award for contracts will be reviewed and approved by the Purchasing Director prior to presentation to the Board of County Commissioners. SECTION ELEVEN: Procurement of Professional Services. A. Consultants' Competitive Negotiation Act. 1. Contracts for professional architectural, engineering, landscape architectural or surveying and mapping services shall be procured in accordance with Fla. Stat.§287.055, referred to as the Consultants' Competitive Negotiation Act(CCNA). 2. Continuing contract. The County is authorized to enter into a continuing contract for CCNA services in accordance with the CCNA, whereby the firm provides professional services to the County for projects in which construction costs do not exceed $2,000,000, for study activity if the fee for each individual study under the contract does not exceed $200,000; or for work of a specified nature as outlined in the contract required by the County, with the contract being for a fixed term or with no time limitation, except that the contract must provide a termination clause. 3. Ranking affirms. The County, through the competitive proposal process, shall make a finding that the firm or individual to be employed is duly qualified to render the required 11 Packet Page-2737- 12/10/2013 17.J. service. The evaluation committee shall review statements of qualifications and performance data submitted in response to the public solicitation and shall select, in order of preference, no fewer than three firms deemed to be the most highly qualified, if at least three firms respond to the solicitation. If less than three firms respond, and after meeting due diligence, it is decided by the Purchasing Director that every effort was made to comply with CCNA requirements, the County will conduct discussions with, and may require public presentations by. the responding firms regarding their qualifications, approach to the project and ability to furnish the required services. 4. Evaluation criteria. Pursuant to the CCNA, the evaluation criteria for ranking shall include factors such as: ability of firm and its professional personnel; firm experience with projects of a similar size and type; firm's willingness and ability to meet the schedule and budget requirements; volume of work previously awarded by the county; effect of the firms recent/current and projected workload; minority business status; location; past performance and when required, the public presentation. For continuing contracts, ranking and award shall be based on the criteria identified in the RFP document. For non-continuing contracts or project specific contracts, public presentation may be required. �. Public presentation. The evaluation criteria for public presentation shall include factors such as the firm's understanding of the project, ability to provide required services within the schedule and budget, qualifications and approach to the project. 6. Contract negotiations. The ranking of firms for all CCNA contracts shall be presented to the Board of County Commissioners for consideration and approval. Upon Board approval of firm rankings, staff shall negotiate a contract with the most qualified firm (number one ranked firm) for professional services for compensation which is deemed to be fair and reasonable. Detailed discussions must be held by the firm and the County to establish the scope of the project and the exact services to be performed by the firm. Should the County and the firm fail to agree upon the terms of an acceptable contract, negotiations with the top firm shall be terminated and negotiations with the second ranked firm shall commence. If again unsuccessful, the process is repeated with the next ranked firm. This process is continued until a mutually agreeable contract is concluded or the project is abandoned, or the procurement process is otherwise terminated. B. Other Professional Services. Because differences in price may only be a minor concern compared to qualitative considerations, professional services that fall outside the scope of the CCNA except as otherwise provided by law and outlined below, may be exempted by the Purchasing Director from the competitive bidding process. Instead, professional services will be typically acquired through one of the following methods: I. Competitive Selection and Negotiation as set forth immediately above; or 2. Competitive Proposals (pursuant to Section 12). 3. In addition to the definition set forth in the CCNA, a professional service shall be defined as assistance obtained in support of County operations from an independent contractor in one or more of the following professional fields: 12 Packet Page -2738- 12/10/2013 17.J. Ask a. Appraisal Services - real and personal property appraisers. b. Audit and Accounting Services - auditors and accountants (excepting the selection of the annual auditor which shall be conducted as per Section 11.45, F.S.). c. Consultants - planning, management, technological or scientific advisors. d. Financial Services - bond counsel, rating and underwriting, financial advisor, and investment services. e. Legal Services- attorneys and legal professionals. f. Medical Services - medicine, psychiatry, dental, hospital, and other health professionals. 4. Final selection of the professional service provider (award of contract) shall be made by the Board of County Commissioners. 5. Requests for outside legal services will be consistent with both this Purchasing Ordinance and the County Attorney's Ordinance (Ord. No. 2013-34). The retention of services from experts or consultants for purposes of preparing for or defending against imminent or pending litigation or administrative proceedings shall be exempt from all competitive requirements of this Purchasing Ordinance, and must first be approved by the Board. SECTION TWELVE: Competitive Proposals. A. The Competitive Proposals process is a method of contract selection that may be utilized by the Purchasing Director under circumstances where one or more of the following conditions exist: 1. Where qualitative considerations are of equal or greater concern than pricing considerations. 2. Where the conditions of the purchase do not lend themselves to the formal sealed bid process or the award of a firm, fixed fee contract. 3. Where the County is incapable of specifically defining the scope of work for which the commodity(s) or service(s) is required and where the vendor is asked to propose a commodity(s) or service(s) to meet the needs of the County. 4. Where the County desires to enter into a single contract for the design and construction of a public construction project(s). 13 Packet Page -2739- 12/10/2013 17.J. B. For purchases in excess of the formal competitive threshold and where appropriate or required by law, the competitive solicitation process will be utilized. The process will be conducted in a manner similar to the sealed bid process as set forth under Section 10 except where otherwise stated in this section. The competitive proposals process shall proceed as follows: 1. A Request for Proposals (RFP) will be prepared and distributed. Notice of said request(s) shall be publicly posted by the Purchasing Department at least 21 calendar days preceding the last day established for the receipt of proposals. 2. Each Request for Proposals shall identify the evaluation procedures and criteria to be applied to the selection of the best proposal among the respondents. Each RFP pertaining to the award of a design/build contract(s) shall be subject to the requirements of Fla. Stat. Sec. 287.055 and section thirteen below. 3. Prior to the announcement and distribution of the RFP, a selection committee shall be appointed by the County Manager to evaluate the proposals received. 4. Proposals may be solicited and/or received in one or more steps as permitted by law and deemed appropriate by the Purchasing Director. Unless otherwise prohibited by law, the Purchasing Director shall have the discretion to solicit and conduct simultaneous or concurrent negotiations with one or more firms. SECTION THIRTEEN: Procurement of Design-Build Contracts. A. Procurements for the design and construction of public construction projects may he obtained through a single contract with a design-build firm selected in a manner permitted under Fla. Stat. Sec. 287.055 and the procedures set forth in this section. B. Upon completion of the Design Criteria Package, procurements of Design/Build services shall be processed in a manner consistent with Section 12 hereof entitled "Competitive Proposals." C. The Board of County Commissioners may declare a public emergency, where appropriate and authorize the using Agency to negotiate an agreement for Board approval with the best qualified design-build firm available at that time. SECTION FOURTEEN: Small and Disadvantaged Minority and Women Business Enterprises. A. Policy Statement: Collier County stands committed to providing equal opportunities to small businesses and disadvantaged business enterprises (DBE), minority business enterprises (MBEs) and women business enterprises (WBEs) as well as to all vendors, consultants, contractors and subcontractors who seek to do business with the County. Pursuant to this policy, Collier County encourages its vendors, consultants, contractors and subcontractors to provide qualified small businesses and DBE's with an equal opportunity to 14 Packet Page -2740- 12/10/2013 17.J. participate in the formal competitive processes for the procurement of commodities and services by the County. The Policy is not intended to require or to allow partiality toward or discrimination against any small business or DBE. MBE. WBE, or any other vendor, consultant, contractor or subcontractor on the basis of gender. race or national origin, or other such factors, but rather to create an opportunity for small businesses and DBEs, MBEs, WBEs, and all qualified vendors, consultants, contractors and subcontractors to participate in the County's formal competitive processes. Nothing in this Policy shall be construed to provide for or require any preference or set-aside based on gender, race, national origin or any other such factor. B. Implementing Measures: In an effort to implement this policy, the County may undertake the following measures: 1. Designate the Purchasing Director to administer this policy. 2. Utilize outreach programs to identify, register and educate small businesses and DBEs, MBEs and WBEs to participate in the procurement/contract process which may include: a. Attending trade fairs which include representatives from these enterprises. b. Attending meetings and social events wherein these enterprises are present. c. Utilizing publications aimed at reaching these enterprises. d. Utilizing Purchasing Directories and other reference sources that list these enterprises. e. Publicizing this Policy to encourage these enterprises to participate in the County's procurement process. f. Other actions designed to identify opportunities for these enterprises who seek to provide commodities and services to the County. 3. Maintain a list of these enterprises. 4. Disseminate information regarding competitive opportunities with the County in order to allow qualified small businesses and DBEs. MBEs and WBEs to participate in the County's procurement process. C. Conformity with Applicable Law: The provisions of this section shall be construed in conformity with applicable state and federal law. To the extent that state law conflicts with federal law, federal law shall supersede such state law. 15 Packet Page-2741- 12/10/2013 17.J. SECTION FIFTEEN: Procedure to Provide Preference to Local Businesses in County Contracts. Except where otherwise provided by federal or state law or other funding source restrictions or as otherwise set forth in this Purchasing Ordinance, purchases of commodities and services shall give preference to local businesses in the following manner: (1) "Local Business"defined Local business means the vendor has a current Business Tax Receipt issued by the Collier County Tax Collector for at least one year prior to bid or proposal submission to do business within Collier County, and that identifies the business with a permanent physical business address located within the limits of Collier County from which the vendor's staff operates and performs business in an area zoned for the conduct of such business. A Post Office Box or a facility that receives mail, or a non-permanent structure such as a construction trailer, storage shed, or other non-permanent structure shall not be used for the purpose of establishing said physical address. In addition to the foregoing, a vendor shall not be considered a "local business" unless it contributes to the economic development and well- being of Collier County in a verifiable and measurable way. This may include, but not be limited to, the retention and expansion of employment opportunities, support and increase to the County's tax base, and residency of employees and principals of the business within Collier County. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to be eligible for consideration as a "local business" under this section. A vendor who misrepresents the Local Preference status of its firm in a proposal or bid submitted to the County will lose the privilege to claim Local Preference status for a period of up to one year. (2) Preference in purchase of commodities and services by means of competitive bid, request for proposals, qualifications or other submittals and competitive negotiation and selection. Under any such applicable solicitation, bidders/proposers desiring to receive local preference will be invited and required to affirmatively state and provide documentation as set forth in the solicitation in support of their status as a local business. Any bidder/proposer who fails to submit sufficient documentation with their bid/proposal offer shall not be granted local preference consideration for the purposes of that specific contract award. Except where federal or state law, or any other funding source, mandates to the contrary, Collier County and its agencies and instrumentalities, will give preference to local businesses in the following manner: (a) Competitive bid (local price match option). Each formal competitive bid solicitation shall clearly identify how the price order of the bids received will be evaluated and determined. When a qualified and responsive, non-local business submits the lowest price bid, and the bid submitted by one or more qualified and responsive local businesses is within ten percent of the price submitted by the non-local business, then the local business with the apparent lowest bid offer (i.e., the lowest local bidder) shall have the opportunity to submit an offer to match the price(s), less one (1) dollar, offered by the overall lowest, qualified and responsive bidder. In such instances, staff shall first verify if the lowest non-local bidder and the lowest local bidder are in fact qualified 16 Packet Page-2742- 12/10/2013 17.J. and responsive bidders. Next, the Purchasing Department shall determine if the lowest local bidder meets the requirements of Fla. Stat. Sec.287.087 (Preferences to businesses with drug-free workplace programs). If the lowest local bidder meets the requirements of Fla. Stat. Sec. 287.087, the Purchasing Department shall invite the lowest local bidder to submit a matching offer, less one (1) dollar, within five (5) business days thereafter. If the lowest local bidder submits an offer that fully matches the lowest bid, less one (1) dollar, from the lowest non-local bidder tendered previously, then award shall be made to the local bidder. If the lowest local bidder declines or is unable to match the lowest non-local bid price(s), then award will be made to the lowest overall qualified and responsive bidder. If the lowest local bidder does not meet the requirement of Fla. Stat. Sec 287.087, and the lowest non-local bidder does, award will be made to the bidder that meets the requirements of the reference state law. (b) Request for proposals, qualifications or other submittals and competitive negotiation and selection. For all purchases of commodities and services procured through the Competitive Proposals (Section 12) or Competitive Selection and Negotiation (Section 1 1) methods not otherwise exempt from this local preference section, the RFP solicitation shall include a weighted criterion for local preference that equals 10 percent of the total points in the evaluation criteria published in the solicitation. Purchases of professional services as defined and identified under subsection IIB.2 (which are subject to Section 287.055, F.S.) and subsection 11B.3 (which are subject to Section 11.45, F.S.) shall not be subject to this local preference section. (3) Waiver of the application of local preference. The application of Local Preference to a particular purchase or contract may be waived upon approval of the Board of County Commissioners. (4) Comparison of qualifications. The preferences established herein in no way prohibit the right of the Board of County Commissioners to compare quality of materials proposed for purchase and compare qualifications, character, responsibility and fitness of all persons, firms or corporations submitting bids or proposals. Further, the preferences established herein in no way prohibit the right of the County Commission from giving any other preference permitted by law instead of the preferences granted herein. (5) Reciprocity. In the event Lee County, or any other Florida county or municipality ("local government") deemed appropriate by the Collier County Board of Commissioners, extends preferences to local businesses, Collier County may enter into an interlocal agreement with such local government wherein the preferences of this section may be extended and made available to vendors that have a valid occupational license issued by that specific local government to do business in that local government that authorizes the vendor to provide the commodities and services to be purchased, and a physical business address located within the limits of that local government. Post Office Boxes are not verifiable and shall not be used for the purpose of establishing said physical address. In addition to the foregoing, a vendor shall not be considered a "local business" unless it contributes to the economic development and well-being of the. said local government whichever is applicable, in a verifiable and measurable ,00440, way. This may include, but not be limited to, the retention and expansion of employment 17 Packet Page-2743- 12/10/2013 17.J. opportunities,the support and increase to that local government's tax base, and residency of employees and principals of the business located within the limits of that local government. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to be eligible for consideration as a "local business" under this section. In no event shall the amount of the preference accorded other local government firms exceed the amount of preference that such local government extends to Collier County firms competing for its contracts. (6) Purview and administration of this Local Preference Policy. This policy shall apply to all departments and units under the direct purview of the Board of County Commissioners. For purchases of $50,000 or less, the Purchasing Department shall systematically encourage departments to include local vendors when soliciting quotations in accordance with this policy. SECTION SIXTEEN: Payment of Invoices. A. Agencies under the purview of the Board of County Commissioners shall be in compliance with Fla. Stat. Sec. 218.70, otherwise known as the "Local Government Prompt Payment Act." Pursuant to this, the requirements of this section shall apply to the following transactions: 1. The purchase of commodities and services; 2. The purchase or lease of personal property; 3. The lease of real property. B. The County Manager shall establish and maintain a process that authorizes the payment of freight and delivery charges that are not specifically identified on the purchase order of less than $500. C. It shall be the responsibility of the County Manager, in consultation with the Clerk's Finance Director and operating departments, to establish procedures for the timely payment of all transactions as defined under subsection 16.A hereof. Such procedures shall include, but are not limited to the following: 1. Formally defining the County's requirements for the content and submission of a proper invoice, codifying the County's payment requirements and notifying each vendor of their availability. 2. Steps required for the receipt of all invoices and the prompt return of improper invoices. 3. Steps required for the resolution of payment disputes between the County and a vendor. 18 Packet Page-2744- 12/10/2013 17.J. D. Each December, the Purchasing Director and the Clerk of the Courts Finance Director shall submit a report to the Board listing the number and total dollar amount of interest penalty payments made during the preceding fiscal year pursuant to Florida Statute 218. SECTION SEVENTEEN: Advanced Payments for Goods and Services. Procedures for the pre-payment of goods and services with County funds including, but not limited to, dues and membership, insurance, maintenance agreements, subscriptions, travel arrangements. postage, and other purchases as prescribed by the Department of Financial Services through their Administrative Rules. As provided for in Fla. Stat. Sec. 28.235, the Clerk of the Circuit Court is authorized to make advanced payments on behalf of the County for goods and services based on those established procedures. SECTION EIGHTEEN: Standardization, Cooperative Purchasing Organizations and Governmental Contracts A. Where standardization is determined to be desirable by the Board of County Commissioners or included in the Purchasing Manual, the purchase of commodities may be made by negotiation with the approval of the purchase by the Board. B. Annually, the Board of County Commissioners will approve a list of authorized purchasing cooperative organizations and governmental schedules and contracts. The Purchasing Director may approve purchases using these approved cooperative organizations, agreements and contracts with no further action required by the Board providing that funds have been budgeted for these specific purposes. Additionally, the Purchasing Director may join other public agencies in cooperative purchasing organizations and/or agreements if is determined to be in the County's best interest, and if the consortium agreement has not had prior Board approval. The use of any new cooperative agreement must be approved by the Board prior to the use of the agreement. SECTION NINETEEN: Contract Administration. A. Contract Document: Every procurement of contractual services or commodities shall be evidenced by a written document containing all provisions and conditions of the procurement. Said document shall include, but not be limited to: I. A listing of the scope of services to be performed or commodities to be purchased. 2. A provision specifying the criteria and the final date, or number of days, by which such criteria must be met for completion of the work. 3. A provision specifying the terms of cancellation by the County and where applicable, a provision specifying the terms of renewal. 19 Packet Page-2745- 12/10/2013 17.J. 4. Where applicable, a provision establishing the appropriate types and levels of insurance to be carried by the vendor. Said provision shall be employed in a manner consistent with minimum insurance standards approved by the Board of County Commissioners. 5. A provision requiring the contractor/vendor to inform the County if he/she has been convicted of a public entity crime subsequent to July 1, 1989. A purchase order that embodies these provisions shall be sufficient documentation of the procurement. Except as otherwise provided in this Purchasing Ordinance, the Purchasing Director shall determine the circumstances under which a Board approved purchase order (and all documents included by reference) shall serve as the contract document. B. Contract Manager: Every procurement of services shall be administered by the requesting Agency/Department. C. Contract Chances: Notices issued under a purchase order or contract may be authorized and executed by the Purchasing Director, except notices that terminate a Board-approved purchase or contract in its entirety. Modifications to a Board approved purchase or contract, including but not limited to change orders, direct material purchases, notices to proceed or non-compliance, stop work notices. use of approved allowances between line items, supplemental agreements, amendments and changes by letter may be authorized and executed by the Purchasing Director provided that the change is not more than ten (10) percent of the current Board approved dollar amount. Such changes shall he reported monthly to the Board for approval by ratification. All material changes in scope of agreements must be approved by the Board in advance. The proviso at the end of the previous paragraph shall not be applicable to term contracts or blanket purchase orders where the County desires to procure commodities and/or services on an as needed basis without having to obligate itself to a total contract amount. Rather, such purchases shall be based on fixed unit prices or other predetermined pricing methods and shall be limited in quantity by the amount of funds appropriated in the budget of the operating department(s). Such purchases shall he subject to all other provisions of this Purchasing Ordinance. Notices that terminate an entire purchase or contract that was Board approved and contract modifications that increase the total contract amount beyond the limits set forth above as applicable, shall require the approval of the Board of County Commissioners. The Board shall have broad authority, within the limits of the law, to evaluate and approve any recommended contract modification without requiring further competition. D. Contract Extension: Extension(s) of a Board-approved contract for commodities or non- construction services may be requested by the contract manager to the Purchasing Director in writing for a period not to exceed six (6) months (cumulatively) and shall be subject to the same terms and conditions set forth in the contract, if the extension period is provided for in the Board approved contract. The Purchasing Director shall have the authority to authorize and execute all such extensions, which must be issued prior to the expiration of the contract. Any extension(s) that exceed six months (cumulatively) shall be approved by the Board of County Commissioners. 20 Packet Page-2746- 12/10/2013 17.J. E. Contract Renewal: The Purchasing Director shall authorize and execute renewals of contracts for commodities and/or services subject to the following conditions: 1. That the Contractor has performed in a satisfactory manner and that the Purchasing Director has received a request to renew from the Contract or Project Manager verifying the Contractor's satisfactory performance. 2. That the Board approved agreement provided for a renewal and is renewed subject to the terms and conditions set forth in the initial contract. Cost and term modifications are addressed in the original solicitation document and/or resultant contract. 3. That the renewal is done for a set period of time identified in the solicitation document and/or contract, commencing at the end of the contract period. Proposed renewals that fail to meet one or more of the conditions set forth herein will require the approval of the Board of County Commissioners. F. Contract Approval: All contracts for commodities and services shall be authorized by the Board of County Commissioners. G. Work Orders: The Purchasing Director may execute any work order if the work order is equal to or below such Board approval parameters for work orders as are set forth in the Board approved term contract for services under which the work order is generated. Work orders must be in sufficient detail to audit according to the approved contract. H. Consent to Assignments of Contract: For all contracts, the Board of County Commissioners shall approve all assignments of contracts requested by the predecessor contracting party. L Authority Limitation and Delegation; Promulgation of Procedures: The Purchasing Director may delegate to one or more Purchasing Department employees any or all aspects of the authority vested in the Purchasing Director. All authority to execute documents that is vested pursuant to this Section 19 in the Purchasing Director or any other person shall be subject to the limits of any applicable federal, state or other law. J. Payments to Contractors. Vendors and Consultants Prior to the execution of a formal contract subject to this Purchasing Ordinance, the Purchasing Director shall establish a formal payment schedule and payment terms within the agreement. Such terms and conditions shall be consistent with the requirements of all applicable laws and the formal solicitation documents. 21 Packet Page-2747- 12/10/2013 17.J. In accordance with Fla. Stat. Sec. 218.735(8), the Purchasing Director may establish, subject to Board approval, procedures to reduce to 5% the amount of retainage withheld from each subsequent progress payment issued to a contractor where applicable. The Purchasing Director may establish, in writing, a schedule(s) to further reduce the percentage of cumulative retainage held throughout the course of the project schedule where warranted and according to law. Recommendation to reduce the percentage of cumulative retainage shall be subject to the following: 1. That the term "cumulative retainage" is defined to mean "the dollar total of the funds retained from all payments issued under the contract divided by the gross dollar total of all monthly pay requests (or the total of all payment amounts deemed allowable by the project manager, whichever is less)". 2. That any decision to reduce retainage shall be formally communicated in a letter to the Contractor's representative and that the letter affirmatively states that the Contractor has performed the contract work in a satisfactory manner. 3. That the cumulative retainage not be adjusted until at least 50% of the work has been completed and payment has been issued. 4. That the Purchasing Director's letter expressly sets forth the percentage of cumulative retainage to be held for the remaining pay requests. The Purchasing Director may authorize the partial release or payment of contract retainage to the contractor prior to final completion of all project work provided that: 1. The contractor has performed in a satisfactory manner to date as verified in writing by the Project Manager. 2. The total aggregate work under the agreement is at least 50% completed and accepted (i.e.; payments equaling at least 50% of the contract amount less retainage have been issued). 3. The retainage dollar amount to be released is based upon and consistent with the prevailing percentage of cumulative retainage being held at the time that the retainage is released. SECTION TWENTY: Performance and Payment Bonds. A contractor or vendor shall provide a surety bond from a surety company to guarantee full and faithful performance of a contract obligation and the payment of labor and material expended pursuant to a contract whenever, and in such amounts, as required by statute or otherwise as deemed necessary by the Purchasing Director. An irrevocable letter of credit from a financial institution operating within the State of Florida (or other alternative forms of surety as permitted under Florida law) may be sufficient in place of the performance bond if so provided for in the bid and contract documents. All such bonds or letters of credit shall be approved as to form by the County Attorney, and held by the Clerk's Board Minutes and Records Department. 22 Packet Page-2748- 12/10/2013 17.J. SECTION TWENTY-ONE: Unauthorized Purchases. All purchases made shall be consistent and in compliance with the Purchasing Ordinance. Any purchase or contract made contrary to the provisions hereof and contrary to Florida law shall not be approved and the County shall not be bound thereby. SECTION TWENTY-TWO: Prohibition against Subdivision. No contract or purchase shall be subdivided to avoid the requirements of this Purchasing Ordinance or of State law. SECTION TWENTY-THREE: Protest of Bid or Proposal Award. The purpose of this section is to accommodate legitimate protests concerning formal competitive invitations to bid or requests for proposals and recommended contract awards above the formal competitive bid or proposal thresholds prior to award of a contract by the Board of County Commissioners. A. Any actual or prospective bidder or respondent to an Invitation to Bid or a Request for Proposal, who has a substantial interest and alleges to be aggrieved in connection with the solicitation or award of a contract, (hereafter referred to as "the protesting party") may protest to the Purchasing Director, who shall serve as the sole recipient of any and all notices of intent to protest and all formal protests. B. With respect to a protest of the terms, conditions and specifications contained in a solicitation, including any provisions governing the methods for evaluation of bids, proposals or replies. awarding contracts, reserving rights for further negotiation or modifying or amending any contract, the protesting party shall file a notice of intent to protest within three (3) days. excluding weekends and County holidays, after the first publication, whether by posting or formal advertisement of the solicitation. The formal written protest shall be filed within five (5) days of the date the notice of intent is filed. Formal protests of the terms, conditions and specifications shall contain all of the information required for formal protests of recommended contract awards as set forth under subsection C. The Purchasing Director, shall render a decision on the formal protest and determine whether postponement of the bid opening or proposal/response closing time is appropriate. The Purchasing Director's decision shall be considered final and conclusive unless the protesting party files an appeal of the Purchasing Director's decision. C. Any actual or prospective bidder or respondent to an Invitation to Bid or a Request for Proposal who desires to protest a recommended contract award shall submit a notice of intent to protest to the Purchasing Director within two (2) calendar days, excluding weekends and County holidays. from the date of the initial posting of the recommended award. D. All formal protests with respect to a recommended contract award shall be submitted in writing to the Purchasing Director for a decision. Said protests shall be submitted within five (5) 23 Packet Page-2749- 12/10/2013 17.J. calendar days, excluding weekends and County holidays, from the date that the notice of intent to protest is received by the Purchasing Director, and accompanied by the fee, as set forth below. The protesting party must have standing as defined by established Florida case law to maintain a protest. The formal protest shall contain,but not be limited to the following information: l. Name and address of County Agency affected and the solicitation number and title. 2. The name and address of the protesting party. 3. A statement of disputed issues of material fact. If there are no disputed material facts,the written letter must so indicate. 4. A concise statement of the ultimate facts alleged and of any relevant rules, regulations, statutes, and constitutional provisions entitling the protesting party to relief. 5. The protesting party's entitled demand for the relief. 6. Such other information as the protesting party deems to be material to the issue. The formal protest shall contain all arguments, facts or data supporting and advancing the protestor's position. Under no circumstances shall the protestor have the right to amend, supplement or modify its formal protest after the filing thereof. Nothing herein shall preclude the County's authority to request additional information from the protesting party or other bidders or proposers in conjunction with the review and rendering of decisions on the protest, including any subsequent appeal. E. In the event of a timely protest of contract award consistent with the requirements of this section. the Purchasing Director shall not proceed further with the award of the contract until all appropriate administrative remedies as delineated under this section have been exhausted or until the Board of County Commissioners makes a determination on the record that the award of a contract without delay is in the best interests of the County. During this process, the protesting party shall limit their communications with the County to the Office of the County Attorney, and neither the protesting party, their agents or their representatives shall have any private contact or discussions with individual County Commissioners, the County Manager, other County employees, or any independent hearing officer (where applicable) regarding the protest except such communications as may be required or permitted during a hearing, if applicable, or a meeting of the County Commission wherein the solicitation or award is to be considered. F. The Purchasing Director shall review the merits of each timely protest and in consultation with the contract manager and other appropriate County staff, issue a decision stating the reasons for the decision and the protesting party's rights of appeal under this section. Said decision shall be in writing and mailed or otherwise furnished to the protesting party. The decision of the Purchasing Director shall be final and conclusive unless the protesting party delivers a subsequent written notice of appeal to the Purchasing Director within two (2) calendar days, excluding weekends and County holidays from the date of receipt of the decision. In filing a written objection to the Purchasing 24 Packet Page -2750- 12/10/2013 17.J. Director's decision, the protestor shall not introduce new arguments or alter in any other way their Aft protest submission. An appeal of the Purchasing Director's decision shall be limited to a review of the grounds set forth in the formal protest, and no new grounds or arguments will be introduced or considered. G. In the event of a subsequent appeal pursuant to subsection F, the County Manager shall determine whether to appoint an independent Hearing Officer to review the formal protest and the Purchasing Director's decision. The Hearing Officer's review shall be limited to the grounds set forth in the formal protest, and shall be for the purpose of determining whether the County's intended action is arbitrary, capricious, illegal, dishonest or fraudulent. The protesting party shall have the burden of proof. The Hearing Officer shall consider the formal protest, the Purchasing Director's decision, and supporting documents and evidence presented at the hearing. In any hearing, irrelevant, immaterial or unduly repetitious evidence shall be excluded. All other evidence of a type commonly relied upon by reasonably 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. The Hearing Officer may grant the motion of any person having standing under Florida law to intervene in the proceedings. Persons or parties shall have the right to be represented by counsel in the proceedings, to call witnesses, and present evidence; provided, however, that the Hearing Officer shall not have the right to compel attendance of witnesses or to permit or compel any discovery. The Hearing Officer will have a maximum of 60 days to schedule and conduct a hearing into the matter and issue a recommended finding of fact and an opinion in writing to the County Manager or designee for submission to the Board of County Commissioners. Should the Hearing Officer find in favor of the County, the protesting party pay, in full, the costs of the Hearing Officer. if the Hearing Officer's recommended decision is in favor of the protesting party, then the County will assume this cost. The County Manager's discretion as to whether to appoint a Hearing Officer shall in no way afford the protestor the right to demand such an appointment or hearing. The decision of a Hearing Officer on a protesting party's appeal shall be submitted to the Board for its consideration as part of a final award decision. Nothing herein shall be construed as creating a right of judicial review of the Hearing Officer's decision, nor shall such decision be binding upon the Board. Additionally, nothing herein shall be construed as limiting the Board's right to reject any and all bids or proposals. H. Decisions of the Purchasing Director and Hearing Officer (where applicable) will be provided to the protestor and other interested parties prior to the award recommendation being presented to the Board of County Commissioners. Neither the County Manager's decision nor the Hearing Officer's recommended decision shall be construed as an award recommendation triggering additional rights of protest pursuant to this policy. Notwithstanding anything set forth herein to the contrary, the Board of County Commissioners shall retain the authority to make the final award decision. I. Failure to file a formal protest within the time and manner prescribed by this policy shall constitute a waiver of the right to protest by any protesting party as defined by subsection "A" of this policy. Atmot 25 Packet Page-2751- 12/10/2013 17.J. J. As a condition of filing a formal appeal to the Purchasing Director's initial finding, the protesting party shall submit a non-refundable filing fee for the purpose of defraying the costs of administering the protest. The filing fee shall be submitted with the formal protest. Failure to pay the filing fee shall result in the denial of the protest. The amount of the filing fee shall be as follows: Estimated Contract Amount Filing Fee $250,000 or less $500 $250,000.01 to $500,000 $1,000 $500,000.01 to $5 million $3,000 $5 million or more $5,000 This fee may be modified by Resolution of the Board of County Commissioners. SECTION TWENTY-FOUR: Contract Claims. All actual or prospective claims arising against the County from contractors, vendors or any other party in direct privity with the County to provide goods or services shall first be directly addressed by the parties' administrative representatives in a manner consistent with the agreement between the parties and in accordance with the County's procedures Manual. For any prospective or actual claims or disputes arising under any contract entered into by the County, the Purchasing Director must determine the facts of the dispute. All contract claims should be reported to the County Attorney's Office and Clerk's Finance for proper documentation and recording and to the Board for determining action. SECTION TWENTY-FIVE: Exigent Circumstances, Emergency and Board Absence Purchases. In case of an exigent circumstance, which is defined as any circumstance requiring immediate action or attention, a valid public emergency, or during the Board's extended recess session(s) (all efforts should be made to obtain Board approval prior to anticipated recesses) whereby a purchase is necessary, the County Manager shall authorize the Purchasing Director to secure by open market procedure as herein set forth, any commodities or services. The County Manager shall have the authority to take actions including, but not limited to the issuance of contracts, change orders, and/or supplemental agreements. Any action shall be reported at the first available meeting of the Board of County Commissioners. The County Manager under the same consultations noted above shall further be authorized to approve payment(s)to vendors at the time of or shortly after purchase should the circumstances warrant. These payments shall be reported at the first available meeting of the Board. This section in no way constrains the provisions of Collier County's Civil Emergency ordinances or powers and authority pursuant to Fla. Stat. ch. 252, Emergency Management. 26 Packet Page-2752- 12/10/2013 17.J. SECTION TWENTY-SIX: Inspection and Testing. rr= The Purchasing Director shall inspect, or supervise the inspection of, or cause to he inspected, all deliveries of commodities or services to determine their conformance with the specifications set forth in an order or contract. A. Inspection by Operating Department: The Purchasing Director shall authorize operating departments to inspect all deliveries made to such operating departments under rules and regulations which the Purchasing Director shall prescribe. B. Testing: The Purchasing Director shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. In the performance of such tests, the Purchasing Director shall have the authority to make use of laboratory facilities of any Agency of the County or of any contracted outside laboratory. SECTION TWENTY-SEVEN: Purchasing Card Program. The Purchasing Director shall be responsible for the overall management and operation of the County's purchasing card program. For the purpose of this Purchasing Ordinance, a purchasing card is a credit card officially assigned to specific employees under the purview of the Board of County Commissioners' agency for the purpose of transacting small and/or strategic, contract, travel related. and other purchases made according to Section Eight. The Purchasing Director shall be authorized to assign cards to employees for these purchases. The Purchasing Director shall be responsible for establishing the following dollar limits for each assigned card: A. Single Transaction Limit: Not to exceed $1,000 per card unless otherwise authorized by the Purchasing Director. 13. Monthly Spending Limit: Not to exceed $10,000 per card unless otherwise authorized by the Purchasing Director. C. Strategic Purchases: The Purchasing Director may utilize (or delegate the authority to other Agency staff to utilize) a purchasing card to place orders that exceed the limits set forth under this section in instances where one or more of the following is true: 1. Where the purchase is to address a valid public emergency; or 2. Where the County will earn revenue through card program rebates; or Where a vendor is requiring the County to order by purchasing card. 27 Packet Page-2753- 12/10/2013 17.J. SECTION TWENTY-EIGHT: Conflict of Interest. When procuring commodities or services using County funds, each entity and employee under the purview of the Board of County Commissioners shall comply with all applicable state and federal laws concerning ethics and conflict of interest. For state or federally funded projects, County entities and employees shall comply with all legal requirements, including the requirements of Part 85. Section 36(b)(3) of the Housing and Urban Development Code. SECTION TWENTY NINE: Debarment and Suspension. The County Manager may suspend and/or debar vendors, contractors, consultants and other interested and affected persons from active participation in obtaining County contracts upon approval of the Board. The purpose of any such action shall be to protect the County's interests and the inte urity of the County's contracting process. The suspension and debarment processes shall be considered to be separate from and in addition to the award evaluation and vendor performance evaluation processes authorized elsewhere in this Purchasing Ordinance A. Definition of Terms: For the purposes of this section, the following terms have been defined as follows: 1. Affiliate refers to associated business entities or individuals that control or could control the contractor or are controlled by the contractor or could be controlled by the contractor. 2. Civil Judgment refers to a judgment or finding of a civil offense by any court of competent jurisdiction. 3. Contractor means any individual or legal entity that: a. Directly or indirectly (e.g.; through an affiliate), submits offers for or is awarded, or reasonably may be expected to submit offers for or be awarded, a County contract for construction or for procurement of commodities and services, including professional services; or b. Conducts business, or reasonably may be expected to conduct business, with the County as an agent, surety, representative or subcontractor of another contractor. 4. Conviction means a judgment or conviction of a criminal offense, felony or misdemeanor, by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere. 5. Debarment means action taken by the County to exclude a contractor from County contracting and County-approved subcontracting for a reasonable, specified period as provided herein. 28 Packet Page-2754- 12/10/2013 17.J. 6. Preponderance of the Evidence means proof by information that, compared with that Alb opposing it, leads to the conclusion that the fact at issue is more probably true than not. 7. Subcontractor: Any individual or legal entity that offers or agrees to provide commodities or services to a party deemed to be a contractor under this section. 8. Suspension refers to action taken by the Purchasing Director to temporarily disqualify a contractor from County contracting or County-approved subcontracting pending action of the Board. B. Suspension: The Purchasing Director shall have the authority to recommend to the Board the suspension of a contractor, subcontractor or person from consideration for award of contracts if there appears to be a reasonable basis for debarment as set forth herein. If a suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. The suspension period shall not exceed three months without the approval of the County Manager. C. Debarment: 1. Causes for Debarment: The prospective causes for debarment include one or more of the following: a. Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract, or in the performance of such contract or subcontract. b. Conviction under state or federal law of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently, seriously and directly affects responsibility as a contractor. c. Conviction under state or federal antitrust laws arising out of the submission of bids, proposals or other competitive offers. d. Violation(s) of County contract(s) provisions, which is (are) deemed to be serious and to warrant debarment, including the failure, without good cause,to perform in accordance with the terms, conditions, specifications, scope, schedule or any other provisions of the contract(s). e. Refusal to provide bonds, insurance or other required coverage and certifications thereof within a reasonable time period. f. Refusal to accept a purchase order, agreement or contract, or perform accordingly provided such order was issued timely and in conformance with the solicitation and offer received. Amok 29 Packet Page -2755- 12/10/2013 17.J. g. Presence of principals or corporate officers in the business of concern, who were principals within another business at the time when the other business was suspended or debarred within the last three years under the provisions of this section. h. Violation of the ethical standards set forth under applicable state or county laws. Debarment of the contractor by another public agency. .i. Any other cause deemed to be so serious and compelling as to materially affect the qualifications or integrity of the contractor. 2. Procedure: a. The county department requesting the suspension or debarment action shall submit to the Purchasing Director a written complaint setting forth the reason(s) for seeking debarment and shall identify a recommended debarment period. b. The Purchasing Director shall review the complaint, verify whether it is compliant with the provision of this Purchasing Ordinance, direct any appropriate changes and forward the complaint to the contractor. c. The contractor shall review the complaint and shall provide a written response (with supporting documentation) to each allegation. The response shall be provided to the Purchasing Director within ten (10)business days of receipt of the notice of allegations. In the event that the contractor fails to respond to the complaint within the prescribed time period, the complaint, as forwarded to the contractor, shall become an effective suspension or debarment decision without further appeal. d. In the event that the contractor files a timely and complete response to the complaint and the suspension or debarment action is based upon a conviction, judgment or other event(s) where there is no significant dispute over material facts, the Purchasing Director shall determine the period of recommended suspension or debarment on the basis of the undisputed material information set forth or referenced in the complaint, the contractor's reply and the parameters set forth in this section. In the event that the Contractor objects to the Purchasing Director's recommendation, the Contractor shall have a maximum of three business days to file an appeal of the debarment decision with the Purchasing Director. The appeal will be forwarded to and considered by the County Manager, who will review the record compiled by the initiating department and the contractor. Should the County Manager overturn the Purchasing Director's decision; the County Manager shall formally cite the reasons for doing so. 30 Packet Page-2756- 12/10/2013 17.J. e. In the event that the contractor files a timely and complete reply to the Ask complaint and where the facts are in dispute, the Purchasing Director will convene a committee (hereinafter referred to as "the committee") consisting of at least three individuals who will review the complaint and the contractor's reply. The County Manager shall formally appoint the committee, which will generally consist of county employees, none of whom shall be a member of the department initiating the complaint. At the discretion of the County Manager, a member from private industry with a particular area of relevant expertise may be appointed to the committee,provided that this member is not a direct or indirect competitor of the firm in question. The Office of the County Attorney shall appoint a representative to attend the hearing. The representative shall not be considered a voting member of the committee, but shall be available to provide legal counsel to the committee as necessary. All members appointed to serve on the debarment committee shall disclose, to the Purchasing Director any actual or prospective conflicts of interest at the time of appointment or at the time in which the member becomes aware of the actual or prospective conflict. f. The Purchasing Director shall chair the committee and serve as the Purchasing Department's representative to the committee. The Purchasing Director shall preside over and facilitate the deliberations of the committee as a non-voting member and serve as the County's liaison to the Contractor. All voting committee members are prohibited from having any communication regarding the issue outside the committee deliberations with any of the parties involved in the specific suspension or debarment or their representatives until after the committee decision has been issued or, in the event of an appeal of that decision by the contractor, until the conclusion of the appeal process. All committee deliberations are subject to Section 286.011 Fla. Stat. g. Where the material facts are in dispute, the committee shall evaluate the evidence, judge the credibility of witnesses and base its decision upon the preponderance of the evidence. Should the contractor fail to appear at the hearing, the contractor shall be presumed to be unqualified and or non- responsive and shall be subject to suspension or debarment. The committee decision shall be by a majority vote of those voting members in attendance. The committee shall be the sole trier of fact. In the event that the committee decides to impose suspension or debarment, the decision will formally include, but not be strictly limited to the following information: 1) The specific reasons for the action; 2) The scope of the suspension or debarment; and 3) The period of suspension or debarment, including the effective and expiration dates. The committee's decision shall be issued in writing within 20 business days of the conclusion of the hearing unless the committee extends this period for ,00401 good cause. 31 Packet Page-2757- 12/10/2013 17.J. h. The Purchasing Director shall forward the committee's decision to the contractor and affiliates involved. Should the contractor object to the committee's decision, the contractor shall have a maximum of three business days to file an appeal of the decision with the Purchasing Director. The appeal will be forwarded to and considered by the County Manager, who will review the record compiled by the initiating department, the contractor and the committee. Should the County Manager overturn the committee's decision; the County Manager shall formally cite the reasons for doing so. Final recommendation for debarment shall be approved by the Board. 3. Debarment Period: a. The committee shall recommend the period of debarment. The debarment period shall be commensurate with the severity of the cause(s) and approved by the Board. b. The committee (having the same or different composition) may recommend to the Board a reduction in the debarment period upon a written request from the contractor to do so, based on one or more of the following reasons: 1) Newly discovered material evidence; 2) A reversal of the conviction, civil judgment or other action upon which the debarment was based; 3) Bona fide change in ownership or management; 4) Elimination of other causes for which the debarment was imposed; or 5) Other reasons that the committee might deem appropriate. The contractor's request shall be submitted to the Purchasing Director in writing and shall be based on one or more of the aforementioned reasons. c. The decision of the Board regarding a reduction of the debarment period is final and not subject to appeal. 4. The Effects of Debarment: a. Debarred contractors are excluded from receiving County contracts. Departments shall not solicit offers from, award contracts to, or consent to subcontractors with debarred contractors, unless the County Manager in consultation with the Board Chair or Vice-Chair determines that emergency or single source conditions exist and grants written approval for such actions. Debarred contractors are excluded from conducting business with the County as agents, representatives, subcontractors or partners of other contractors. 32 Packet Page-2758- 12/10/2013 17.J. b. The Purchasing Department shall notify all Board departments of the final debarment decision and the effects of that decision with regard to conducting business with the debarred entity(ies) during the debarment period. 5. Continuation of Current Contracts: a. Departments may not renew or otherwise extend the duration of current contracts with debarred contractors in place at the time of the debarment unless the Board determines that it is in the best interests of the County to allow the contractor to continue or finish the work within an additional, limited period of time. b. Debarment shall constitute grounds for terminating an open agreement with a contractor. However, the contract manager may, with Board approval, permit completion of an open contract(s) provided that the debarred contractor has performed in a satisfactory manner to date under the open contract(s) unless otherwise directed by the Purchasing Director. 6. Restrictions on Subcontracting: a. When a debarred contractor is proposed as a subcontractor for any subcontract subject to County approval, the department shall not consent to subcontracts with such contractors unless the County Manager in consultation with the Chair or Vice-Chair determines that emergency or single source conditions exist, thus justifying such consent and approves such decision. b. The County shall not be responsible for any increases in contract costs or other expenses incurred by a contractor as a result of rejection of proposed subcontractors pursuant to subsection 6.a provided that the subcontractor was debarred prior to the submission of the applicable bid or proposal offer. 7. The Scope of Debarment: Debarment applies to all officers, Directors, Managers, principals. Purchasing Directors, partners, qualifiers, divisions or other organizational elements of the debarred contractor, unless the debarment decision is limited by its terms to specific divisions, organizational elements or commodity/services. The committee's decision includes any existing affiliates of the contractor if they are specifically named and are given written notice of the proposed debarment and an opportunity to respond. Future affiliates of the contractor are subject to the pre- existing terms of the committee's decision. SECTION THIRTY: Waiver of Ordinance. The Board of County Commissioners shall have the authority to waive any and all Purchasing Ordinance provisions within lawful guidelines and upon formal Board action. 33 Packet Page-2759- 12/10/2013 17.J. SECTION THIRTY-ONE: Conflict and Severability. In the event this Purchasing Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of the Purchasing Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THIRTY-TWO: Inclusion in the Code of Laws and Ordinances. The provisions of this Purchasing Ordinance shall become and be made a part of the Code of Laws and Ordinance of Collier County, Florida. The sections of the Purchasing Ordinance may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to `'section." "article," or any other appropriate word. SECTION THIRTY-THREE: Effective Date. This Purchasing Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County. Florida, this day of , 2013. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk GEORGIA A. HILLER, ESQ. CHAIRWOMAN Approved as to form and legality: Jeffrey A. Klatzkow County Attorney 34 Packet Page-2760- 12/10/2013 17.J. ORDINANCE NO.2013- AN ORDINANCE REPEALING ORDINANCE 87-25 AS AMENDED,WHICH ORDINANCE ESTABLISHED THE COLLIER COUNTY PURCHASING DEPARTMENT AND ADOPTED A PURCHASING POLICY, AND REPLACING IT WITH THIS NEW ORDINANCE,TO BE KNOWN AS THE COLLIER COUNTY PURCHASING ORDINANCE, WHICH ORDINANCE SETS FORTH ITS PURPOSE AND APPLICABILITY; PROVIDES FOR DEFINITIONS; ESTABLISHES AND SETS FORTH THE DUTIES OF A PURCHASING DEPARTMENT AND PURCHASING DIRECTOR; PROVIDES FOR A PURCHASING MANUAL; PROVIDES FOR �,Lb {Comment,[Al]:Change accepted i UNDER$50,000,AND FOR PURCHASES OVER$50,000; PROVIDES FOR A COMPETITIVE BID PROCESS, THE PROCUREMENT OF PROFESSIONAL SERVICES, COMPETITIVE PROPOSALS, AND PROCUREMENT OF DESIGN-BUILD CONTRACTS; ESTABLISHES POLICIES FOR SMALL AND DISADVANTAGED MINORITY AND WOMEN BUSINESS ENTERPRISES AND FOR PREFERENCE TO LOCAL BUSINESSES; PROVIDES FOR PAYMENT OF INVOICES AND ADVANCE PAYMENTS FOR GOODS AND SERVICES; PROVIDES FOR PROCUREMENTS BASED ON STANDARDIZATION, COOPERATIVE PURCHASING ORGANIZATIONS AND GOVERNMENT CONTRACTS; SETS FORTH A PROCEDURE FOR CONTRACT ADMINISTRATION AND FOR BONDS; PROHIBITS UNAUTHORIZED PURCHASES INCLUDING SUBDIVIDING PURCHASES; SETS FORTH A PROCEDURE FOR BID PROTESTS AND CONTRACT CLAIMS; PROVIDES FOR PURCHASES DURING EXIGENT CIRCUMSTANCES, EMERGENCIES AND BOARD RECESS PERIODS; PROVIDES FOR INSPECTING AND TESTING; PROVIDES FOR SURPLUS PROPERTY; PROVIDES FOR A PURCHASING CARD PROGRAM; PROHIBITS CONFLICT OF INTERESTS; SETS FORTH A PROCEDURE FOR THE DEBARMENT AND SUSPENSION OF VENDORS; AUTHORIZES THE BOARD TO WAIVE THESE PROVISIONS WHEN APPROPRIATE; AND LASTLY PROVIDES FOR CONFLICT AND SEVERABILITY, INCLUSION INTO THE CODE OF LAWS AND ORDINANCES,AND AN EFFECTIVE DATE. WHEREAS,the Board of County Commissioners(the Board)desires to seek the maximum value for the County by procuring the best value in obtaining commodities and contractual services; and WHEREAS.the Board must approve all purchases for valid public purpose and approve all expenditures;and --{Comment[AZ):Change accepted WHEREAS, obtainine as full and open competition as possible on all purchases and contracts and maximizing volume discounts by consolidating purchases and buying"in bulk"when practical serves to further the County's goals and is in the best interest of the taxpayers of Collier County;and 1 Packet Page -2761- 12/10/2013 17.J. WHEREAS,the Board of County Commissioners desires to ensure the County receives all tax exemptions to which it is entitled:and WHEREAS,it is in the best interests of the County for all its agencies and departments to cooperate so as to secure maximum efficiency. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY,FLORIDA,that: SECTION ONE: Title and Citation. This Ordinance shall be known and may he cited as the 'Collier County Purchasing Ordinance"or"Purchasing Ordinance." SECTION TWO: Purpose. The purpose of this Purchasing Ordinance is to codify and formalize Collier County's Purchasing Policy, to provide for the fair and equitable treatment of all persons involved in public purchasing by the County,to maximize the purchasing value of public funds in procurement,and to provide safeguards for maintaining a procurement system of quality and integrity. Any provision of this Ordinance in conflict with statute is null and void as to the conflict. SECTION THREE: Applicability. (a) This Purchasing Ordinance applies to the procurement of goods and services by the County after the effective date of this Purchasing Ordinance.This Purchasing Ordinance shall apply to all expenditures of public funds by the Board of County Commissioners for public purchasing, irrespective of the source of the funds. Nothing in this section shall prevent the County from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with law. (h)Nothing contained herein shall he construed as requiring Collier County's Constitutional Officers (Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector), Court Administration, State Attorney, Public Defender or the Collier County Metropolitan Planning Organization jion-eounty'finds to be covered by the provisions of this 1 Comment(A31 Changeacceated Purchasing Ordinance. However, the services of the Collier County Purchasing Department and Purchasing Director may be made available for consultation. SECTION FOUR: Definitions. Agency shall mean all departments, divisions, units and offices under the Board of County Commissioners, including the Collier County Redevelopment Agencies,the Collier County Airport Authority, Collier County Water Sewer District and all departments under the auspices of the {comment IA41:Change accepted I County Manager. Change Order shall mean a written order by a project manager,approved by the Purchasing Director and the Board of County Commissioners, directing the contractor to change a contract's 2 Packet Page-2762- 12/10/2013 17.J. Amok amount,requirements,or time. All changes must be within the original scope of the contract and in accordance with the Board approved contract's changes clause or,if no such clause is set forth within the agreement,in accordance with this Purchasing Ordinance. Consultant/Contractor/Supplier/I'endor shall mean a provider of goods or services to the County agency. These terms may be used interchangeably. Continuing Contract shall mean a contract for professional services with no time limitation except that the contract must include a termination clause. Continuing contracts must contain sufficient details of goods and services to he procured for proper audit. County shall mean Collier County. County Manager shall mean the County Manager or County Administrator of Collier County,or designee.as defined in the County Administration Law of 1974,Ch. 125,Part Ill,Florida Statutes. Disadvantaged Business Enterprise shall mean a small business concern certified by the Department of Transportation to he owned and controlled by socially and economically disadvantaged individuals as defined by the Surface Transportation and Uniform Relocation Act of 1987. Extension shall mean an increase in the time allowed for the contract period due to circumstances which make performance impracticable or impossible, or which prevent a new contract from being executed. An extension must be in writing, and may not change the contract's amount or requirements unless provided for in the original solicitation, contract, or as otherwise stated in this Ordinance. Fixed Term Contract is one in which the purchase of commodities or services are available for use Countywide by all agencies as deemed necessary in instances where it is impracticable to establish definitive quantities,ordering schedules,or the details of the specific work to be performed in advance of establishing the contracts(s). Typically, the term and fee schedules are fixed for a period of time. These contracts are often implemented by purchase orders or work orders and may be awarded to multiple firms. Invitation to Bid shall mean a written or electronic solicitation for sealed competitive bids with the title, date, and hour of the public bid opening designated and specifically defining the commodity, group of commodities, or services for which bids are sought. It includes instructions prescribing all conditions for bidding and will he distributed to registered bidders simultaneously. The invitation to hid shall be used when the agency is capable of specifically defining the scope of work for which a contractual service is required or when the agency is capable of establishing precise specifications defining the actual commodity or group of commodities required. Invitation to Negotiate shall mean a written or electronically posted solicitation for competitive sealed replies to select one or more vendors with which to commence negotiations before the procurement of commodities or contractual services. The invitation to negotiate is a solicitation used by an agency which is intended to determine the best method for achieving a 00111141 Packet Page -2763- 12/10/2013 17.J. specific goal or solving a particular problem and identifies one or more responsive vendors with which the agency may negotiate in order to receive the best value. Lowest responsive bid shall mean a bid submitted by the apparent lowest, qualified and responsive bidder whose bid response meets the needs of the County,as set forth in the invitation to bid. Minority business enterprise shall have the same definition as set forth in Florida Statutes Sec. 288.703, as amended from time-to-time,which presently means any small business concern as defined below which is organized to engage in commercial transactions, which is domiciled in Florida,and which is at least 51-percent-owned by minority persons who are members of an insular group that is of a particular racial, ethnic, or gender makeup or national origin, which has been subjected historically to disparate treatment due to identification in and with that group resulting in an underrepresentation of commercial enterprises under the group's control,and whose management and daily operations are controlled by such persons. For purposes of this definition, "small business" means an independently owned and operated business concern that employs 200 or fewer permanent full-time employees and that.together with its affiliates,has a net worth of not more than $5 million or any firm based in this state which has a Small Business Administration 8(a) certification. As applicable to sole proprietorships, the $5 million net worth requirement shall include both personal and business investments. Purchase or procurement shall mean the acquisition of goods or services. Purchasing Card shall mean a credit card officially assigned to specific employees under the purview of the Board of County Commissioners for the purpose of transacting small and/or strategic purchases. Purchase Order shall mean a contract which encumbers appropriated funds and which is directed to a single vendor to furnish or deliver commodities or services to the County. Purchasing Director is the Purchasing Director of Collier County. Purchasing Manual shall mean the Board of County Commissioners' adopted administrative procedures for implementing this Purchasing Ordinance. Purchasing Policy or Policies shall mean the purchasing practices and procedures outlined in this Purchasing Ordinance. Qualified proposer shall mean a proposer who has the capability to perform the services outlined in the request for proposal,and has the integrity and reliability which will assure good faith performance. Renewal shall mean contracting with the same contractor for an additional contract term, only if pursuant to contract terms specifically providing for such renewal and prior to the expiration of the prior term. 4 Packet Page-2764- 12/10/2013 17.J. oak Request,for Proposal shall mean a written or electronic solicitation for sealed proposals with the title,date,and hour of the submission deadline designated.A request for proposal includes,but is not limited to, general information, applicable laws and rules, functional or general specifications. statement of work.proposals instructions,and evaluation criteria. An agency shall use a request for proposals when the purposes and uses for which the commodity, group of commodities, or contractual service being sought can be specifically defined and the agency is capable of identifying necessary deliverables. Various combinations or versions of commodities or contractual services may be proposed by a responsive vendor to meet the specifications of the solicitation document. Responsive bidder or proposer shall mean a person or entity that has submitted a bid or proposal which conforms in all material respects to the invitation to bid, request for proposals, or other methods of formal solicitation. Single source refers to situations in which only one vendor is chosen to provide the goods or services because of its specialized or unique characteristics. Sole source is when there is only one vendor capable of providing a good or service. Standardization shall mean the adoption or selection of a common commodity (commodities).service(s), or a system(s)to be used by one or more County agencies to promote the cost-effective delivery of services. Woman Business Enterprise shall have the same definition as Minority business enterprise, excepting that the small business concern is at least 51-percent-owned by a woman or women. Work Order is a contract instrument issued under the terms and conditions of an approved continuing or fixed term agreement.which authorizes a contractor or consultant to perform a specific task within the broader scope of the master agreement.Nothing in the work order shall conflict with the terms and conditions of the fixed term contract,and all work done must fall within the scope and term of the underlying agreement. SECTION FIVE: Establishment of Purchasing Department and Purchasing Director. 1. There is hereby established the Collier County Purchasing Department, which shall be a distinct administrative department under the direction of the County Manager. 2. The Purchasing Director of the Purchasing Department shall have the authority to negotiate all purchases for all Agencies except as required by State, Federal or Local Law. In keeping with Chapter 125. Florida Statutes, this Purchasing Ordinance grants to the Purchasing Director only those powers and duties which are ministerial in nature and does not delegate any governmental power imbued in the Board of County Commissioners as the governing body of the County pursuant to Fla.Const.Art. VIII, § 1(e). To this end,the below specifically enumerated powers are to he construed as ministerial in nature, for the purpose of carrying out the Board's directives and policies. SECTION SIX: Duties of Purchasing Department. 5 Awow Packet Page-2765- 12/10/2013 17.J. Within the constructs of this Ordinance,the Purchasing Department shall he responsible for: Seeking Maximum Value: Acting to procure for the County the highest quality commodities and contractual services at least expense to the County. 2. Encouraging competition: Endeavoring to obtain as full and open competition as possible on all purchases,services and sales. 3. Purchasing Analysis: Keeping informed of current developments in the field of purchasing, prices, market conditions and new products, and securing for the County the benefits of research conducted in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition, and by private business and organizations. 4. Purchasing Manual: Preparing and recommending for adoption by the Board of County Commissioners administrative procedures for the Agency known as a Purchasing Manual for the implementation of this Purchasing Ordinance. In keeping with Ord. No.2004-66, such procedures shall he made part of the Collier County Administrative Code, with all adoptions, amendments, additions, revisions, or modifications made by resolution of the Board. The Purchasing Manual shall be maintained and published on-line for the benefit of the public. 5. Forms: Prescribing and maintaining such forms to implement this Purchasing Ordinance and Purchasing Manual. 6. purchases: Reviewing nen-een.tr-ac-t—purchases under S50.000 to --Comment[A53:Change net accepted.There is determine if an aggregated contract approach may provide value and offer pricing no competed ticontractpurchasesastheyere advantages to the County. 7. Tax Exemption: Procuring items for the County to exercise its tax exemption status when eligible. 8. Suspension and Debarment of Vendors: Overseeing and facilitating the suspension and/or debarment of vendors as set forth below. 9. Inquiry and Control: Full authority to: a. Question the quality,quantity, and kinds of items requisitioned in order that the best interests of the County are served; b. Ensure the timely,proper and orderly acquisition of services to the various operating departments; c. Ensure purchases are consistent with the Purchasing Ordinance; Comment[AG]:Change not accepted.Based on Purchasing Director authority granted by this Purchasing Ordinance in agreed to procedure of using disbursement Unto obtain approval,it should still be in the purview of whole or in part to Purchasing Department staff members. the Purchasing Director to require pre-approval. 6 Packet Page-2766- 12/10/2013 17.J. SECTION SEVEN: Purchases in General. The Board shall, prior to payment, approve all expenditures with a finding that such expenditures serve a valid public purpose. SECTION EIGHT: Purchases under$50,000 The process for making purchases under$50,000 shall be set forth in detail in the Purchasing Manual.At a minimum: 1. A purchase shall not be artificially divided or split so as to qualify under this or any other section of this Purchasing Ordinance. Purchases under $1.000 will generally he processed using a regular purchase order, or, a purchasing card in accordance with Section 27 of this Purchasing Ordinance. 2. Operating department staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not available,staff will-procure the highest quality items or services at the least expense to the County after approval by the I Purchasing Director and the Board. Only the Boards Purchasing staff may issue a qualification - -Comment(An:change not accepted.Based 1 based soli.citation. ---" ` upon agreed to procedure,approval will be I obtained via disbursement report poor to Issuing payment,not before.procurement. 1 SECTION NINE: Formal Competitive Threshold(Purchases in Excess of S50,000). A It is the intent of the Board of County Commissioners to establish an amount of fifty thousand dollars ($50,000) as the County's threshold for formal competitive purchases. All such purchases shall be accomplished by competitive sealed bid,by competitive selection and negotiation (per Section 11)or by competitive proposals(per Section 12). Award of contracts shall be made by the Board to the lowest.. qualified responsive bidder except where otherwise provided for in this Purchasing Ordinance or unless an exception is granted by the Board. Bid limits for requirements utilizing federal or state funds will he those required by said agency granting the funds or the County's requirements,whichever is more restrictive. All formal competition shall be procured under the supervision of the Purchasing Director. B. The requirement for formal competition may be waived by the Board of County Commissioners where permitted by law,under the following circumstances: 1. Purchase of library books, education and/or personnel tests, similar audio visual materials.periodicals.printed library cards,or other statutorily authorized exceptions. 2. Sole source purchases or single sourcepurchases(pursuant to subsection D). j Comment[A81:Change accepted. j 3. Valid public emergencies(pursuant to Section 25). 4. Where it is determined to be in the best interests of the County to do so. 7 Packet Page-2767- 12/10/2013 17.J. C. All purchases subject to formal competition shall be awarded by the Board of County Commissioners. D. Exemption For Sinele Source Commodities: Purchases of commodities and services from a single source may be exempted by the Board of County Commissioners from formal competition upon certification by the Purchasing Director of one the following conditions: 1. The item(s) is the only one available that can properly perform the intended function(s); 2. The recommended vendor/contractor is the only one ready, willing and able to meet the County's requirements;or 3. The requested exemption is in the County's best interest. E. Use of Past Performance Data: In order to promote the quality delivery of commodities and services.County departments shall record and consider the past performance of vendors in the award of contracts exceeding the competitive threshold. This objective shall he accomplished as follows: 1. The Purchasing Department shall be responsible for each of the following: a. Developing, implementing and maintaining administrative procedures, instructions and technologies necessary to collect past vendor performance data. b. Ensuring that relevant past performance data is properly gathered and considered prior to award of subsequent contracts. 2. Operating departments shall he responsible for each of the following: a. Conducting periodic performance evaluations of vendors under contract with the County pursuant to the procedures established in subsection 9.E.1 a. b. Considering the past performance of vendors during the evaluation of bids and proposals pursuant to the procedures established in subsection 9.E.1 b. F. Bidders and proposers competing for a prospective award(and their agents/representatives) will not be permitted to publicly or privately address the Board or individual Board members regarding a prospective purchase prior to the time of award unless requested to do so by the Purchasing Director or by a majority vote of the Board. SECTION TEN: Competitive Bid Process. A. Notice Inviting Bids: 1. Announcement: Notice inviting bids shall be publicly posted by the Purchasing Department in a consistent public location at least ten(10)days preceding the last day established for the receipt of bid proposals. peci c praiects br grants may require .. -{Comment.[AO Change accepted. j longer posting periods, in those instances the specific requirements would be used. 8 Packet Page-2768- 12/10/2013 17.J. Bids may be solicited and/or received in one or more steps as permitted by law and deemed appropriate by the Purchasing Director. 2. Scope of Notice: The public notice required shall include a general description of the commodities/services to be purchased or sold.the bid instructions and specifications, and the time and place for opening bids. 3. Bidders' l.,ist: The Purchasing Director shall also solicit sealed bids from qualified prospective vendors/contractors who have registered their names on the Collier County Purchasing Department vendor database,which will electronically send them a notice of the proposed purchase or sale. Notices sent to the vendors/contractors on the Collier County Purchasing Department vendor database shall be limited to commodities or services that are similar in character and ordinarily handled by the trade group to which the notices are sent. Vendors/contractors are responsible for maintaining their company information profiles in the database to ensure proper notifications are received. Vendors/contractors may be suspended from the database by the Purchasing Director for continual non-response to formal solicitations and violations of the Purchasing Ordinance. The Purchasing Director may continue to issue formal solicitations and accept formal bids, proposals and other tenders using paper where appropriate. 4. Bid Deposits: When deemed necessary by the Purchasing Director,hid deposits shall he prescribed in the public bid notices. Said deposits shall be in the amount equal to five percent of the bid offer submitted unless a greater amount is required. The Purchasing Director shall have the authority to return the deposits of all bidders upon award and approval of the contract by the Board of County Commissioners. A successful bidder shall forfeit any deposit required by the Purchasing Director upon failure on the vendor's part to enter into a contract within ten(10)working days after written notice of award. 5. Bid Addenda: An addendum to a specification shall be defined as an addition or change in the already prepared specifications for which an invitation has been issued for formal quotations or an announcement has been posted for a formal sealed bid. Any addendum to a request for formal sealed bids shall be approved by the Department Purchasing Director. The addendum shall clearly point out any addition or change to the invitation for bids. The Purchasing Department shall be responsible for assuring that addenda are available on the on-line bidding website and that all prospective bidders who have downloaded specifications are notified of the addendum prior to opening of bids. B. Procedure for Bids: Sealed Bids: Sealed bids shall be submitted manually or electronically to the Purchasing Director. 2. Openine: Bids shall be opened publicly at the time and place stated in the public notices and shall be opened and witnessed by the Purchasing Department. 9 eiss Packet Page-2769- 12/10/2013 17.J. 3. Tabulation: A tabulation of all bids received shall be made either electronically or manually by the Purchasing Department and shall be available for public inspection pursuant to Fla.Stat.Sec. 119.07. C. Tie Bids: Where there are low tie bids, the award process shall first be subject to Fla. Stat. Sec. 287.087. In the event that all of the tied bidders comply with Fla. Stat. Sec. 287.087, the Purchasing Department shall determine if any of the bidders would be considered a local business as defined under Section 15 of this Purchasing Ordinance, If one (and only one) of the bidders is determined to be a local business, then award of contract shall be made to that bidder. In the event that two or more local bidders are tied thereafter,award of contract shall he made in accordance with Section 15(2)(b)of this Purchasing Ordinance. D. Rejection of Bids and Negotiation: 1. The Board of County Commissioners shall have the authority to reject any and all bids. 2. Subsequent to applying the procedures set forth under Section 15(2) (b) (where applicable), if the lowest, responsive bid exceeds the budgeted amount and, if the purchase is not funded in whole or in part with interagency grant dollars, the Purchasing Director may negotiate changes with the apparent lowest qualified and responsive bidder that will bring prices into budgeted limits subject to the final approval and acceptance of the Board. If the budgeted amount includes grant funds. the Purchasing Director shall be authorized to conduct such negotiations provided said actions are not prohibited by law or the grant conditions. 3. If no bid is received, the Board of County Commissioners may authorize the Purchasing Director to purchase by negotiation under conditions most favorable to the public interest and when said purchase will result in the lowest ultimate cost of the commodities or services obtained. he;.negotiated contract will:be approved by the Board; ... Comment[AIC]:ehange net accepted CnnLSttaAProval process defined irtContract AdminSection Nome d fo repeat E. Waiver of Irregularities: The Board of County Commissioners shall have the authority to waive any and all irregularities in any and all formal bids within lawful guidelines. F. Award of Contract: The Chair or Vice Chair in the Chair's absence, when authorized by majority vote of the Board,shall execute formal contracts having a binding effect upon the County. A formal contract shall be awarded by the Board of County Commissioners to the lowest,qualified responsive bidder. In addition to price the following may be considered: 1. The ability.capacity and skill of the bidder to perform the contract. 2. The ability of the bidder to perform the contract within the time required or the least time,if appropriate,without delay or interference. 3. The experience and efficiency of the bidder, 10 Packet Page-2770- 12/10/2013 17.J. 4. The quality and performance of previous contracts awarded to the bidder. 5. The previous and existing compliance by the bidder with laws and ordinances relating to the proposed contract. 6. The quality,availability and adaptability of the commodities or contractual services to the particular use required. 7. The ability of the bidder to provide future maintenance and service (where applicable). 8. Prior litigation or administrative proceedings against the County where the bidder or the bidder's principal was a party. 9. Prior litigation or administrative proceedings involving the bidder or bidder's principal. All recommendations for award for contracts will he reviewed and approved by the Purchasing Director prior to presentation to the Board of County Commissioners. SECTION ELEVEN: Procurement of Professional Services. A. Consultants'Competitive Negotiation Act. 1. Contracts for professional architectural, engineering, landscape architectural or surveying and mapping services shall be procured in accordance with Fla. Stat.§287.055, referred to as the Consultants'Competitive Negotiation Act(CCNA). 2. Continuing contract. The County is authorized to enter into a continuing contract for CCNA services in accordance with the CCNA, whereby the firm provides professional services to the County for projects in which construction costs do not exceed$2,000,000, for study activity if the fee for each individual study under the contract does not exceed $200.000; or for work of a specified nature as outlined in the contract required by the County, with the contract being for a fixed term or with no time limitation, except that the contract must provide a termination clause. 3. Ranking of firms. The County,through the competitive proposal process.shall make a finding that the firm or individual to be employed is duly qualified to render the required service. The evaluation committee shall review statements of qualifications and performance data submitted in response to the public solicitation and shall select, in order of preference, no fewer than three firms deemed to be the most highly qualified, if at least three firms respond to the solicitation.If less than three firms respond,and after meeting due diligence.it is decided by the Purchasing Director that every effort was made to comply with CCNA requirements,the County will conduct discussions with,and may require public presentations by.the responding firms regarding their qualifications,approach to the project and ability to furnish the required services. 11 Packet Page-2771- 12/10/2013 17.J. 4. Evaluation criteria. Pursuant to the CCNA, the evaluation criteria for ranking shall include factors such as: ability of firm and its professional personnel; firm experience with projects of a similar size and type; firm's willingness and ability to meet the schedule and budget requirements;volume of work previously awarded by the county; effect of the firms recent/current and projected workload; minority business status; location; past performance and when required,the public presentation.For continuing contracts,ranking and award shall be based on the criteria identified in the RFP document. For non-continuing contracts or project specific contracts,public presentation may be required. 5. Public presentation. The evaluation criteria for public presentation shall include factors such as the firm's understanding of the project, ability to provide required services within the schedule and budget,qualifications and approach to the project. 6. Contract negotiations. The ranking of firms for all CCNA contracts shall be presented to the Board of County Commissioners for consideration and approval. Upon Board approval of firm rankings,staff shall negotiate a contract with the most qualified firm (number one ranked firm)for professional services for compensation which is deemed to he fair and reasonable.Detailed discussions must be held by the firm and the County to establish the scope of the project and the exact services to be performed by the firm. Should the County and the firm fail to agree upon the terms of an acceptable contract.negotiations with the top firm shall he terminated and negotiations with the second ranked firm shall commence. If again unsuccessful, the process is repeated with the next ranked firm. This process is continued until a mutually agreeable contract is concluded or the project is abandoned,or the procurement process is otherwise terminated. B. Other Professional Services. Because differences in price may only be a minor concern compared to qualitative considerations,professional services that fall outside the scope of the CCNA except as otherwise provided by law and outlined below, may be exempted by the Purchasing Director from the competitive bidding process. Instead, professional services will be typically acquired through one of the following methods: 1. Competitive Selection and Negotiation as set forth immediately above:or 2. Competitive Proposals(pursuant to Section 12). 3. In addition to the definition set forth in the CCNA, a professional service shall he defined as assistance obtained in support of County operations from an independent contractor in one or more of the following professional fields: a. Appraisal Services-real and personal property appraisers. b. Audit and Accounting Services - auditors and accountants (excepting the selection of the annual auditor which shall be conducted as per Section 1 1.45, F.S.). c. Consultants-planning.management.technological or scientific advisors. 12 Packet Page-2772- 12/10/2013 17.J. d. Financial Services-bond counsel, rating and underwriting, financial advisor, and investment services. e. Legal Services-attorneys and legal professionals. f: Medical Services - medicine, psychiatry, dental, hospital. and other health professionals. 4. Final selection of the professional service provider(award of contract)shall be made by the Board of County Commissioners. 5. Requests for outside legal services will be consistent with both this Purchasing Ordinance and the County Attorney's Ordinance(Ord.No.2013-34).The retention of services from experts or consultants for purposes of preparing for or defending against imminent or pending litigation or administrative proceedings shall be exempt from all competitive requirements of this Purchasing Ordinance, and must first be approved by the Board. SECTION TWELVE: Competitive Proposals. A. The Competitive Proposals process is a method of contract selection that may be utilized by the Purchasing Director under circumstances where one or more of the following conditions exist: 1. Where qualitative considerations are of equal or greater concern than pricing considerations. ? Where the conditions of the purchase do not lend themselves to the formal sealed bid process or the award of a firm,fixed fee contract. 3. Where the County is incapable of specifically defining the scope of work for which the commodity(s)or service(s)is required and where the vendor is asked to propose a commodity(s)or service(s)to meet the needs of the County. 4. Where the County desires to enter into a single contract for the design and construction of a public construction project(s). B. For purchases in excess of the formal competitive threshold and where appropriate or required by law. the competitive solicitation process will be utilized.The process will be conducted in a manner similar to the sealed bid process as set forth under Section 10 except where otherwise stated in this section. The competitive proposals process shall proceed us follows: 1. A Request for Proposals (RFP) will be prepared and distributed. Notice of said request(s)shall be publicly posted by the Purchasing Department at least 21 calendar days preceding the last day established for the receipt of proposals. 13 Packet Page-2773- 12/10/2013 17.J. 2. Each Request for Proposals shall identify the evaluation procedures and criteria to be applied to the selection of the best proposal among the respondents. Each RFP pertaining to the award of a design/build contract(s) shall be subject to the requirements of Fla.Stat.Sec.287.055 and section thirteen below. 3. Prior to the announcement and distribution of the RFP,a selection committee shall be appointed by the County Manager to evaluate the proposals received. 4. Proposals may he solicited and/or received in one or more steps as permitted by law and deemed appropriate by the Purchasing Director. Unless otherwise prohibited by law, the Purchasing Director shall have the discretion to solicit and conduct simultaneous or concurrent negotiations with one or more firms. the final selection of the firm and contract will be Improved by the Board.i........ . ....__ ._ _-_--. Comment(All] Change not accepted AD formal competed contracts go to the Board.No -need.In nspeat SECTION THIRTEEN: Procurement of Design-Build Contracts. A. Procurements for the design and construction of public construction projects may be obtained through a single contract with a design-build firm selected in a manner permitted under Fla. Stat. Sec.287.055 and the procedures set forth in this section. B. Upon completion of the Design Criteria Package, procurements of Design/Build services shall he processed in a manner consistent with Section 12 hereof entitled"Competitive Proposals." C. The Board of County Commissioners may declare a public emergency, where appropriate and authorize the using Agency to negotiate an agreement for Board approval with the best qualified design-build firm available at that time. SECTION FOURTEEN: Small and Disadvantaged Minority and Women Business Enterprises. A. Policy Statement: Collier County stands committed to providing equal opportunities to small businesses and disadvantaged business enterprises(DBE),minority business enterprises(MBEs)and women business enterprises (WBEs) as well as to all vendors, consultants, contractors and subcontractors who seek to do business with the County. Pursuant to this policy, Collier County encourages its vendors, consultants, contractors and subcontractors to provide qualified small businesses and DBE's with an equal opportunity to participate in the formal competitive processes for the procurement of commodities and services by the County. The Policy is not intended to require or to allow partiality toward or discrimination against any small business or DBE. MBE, WBE, or any other vendor, consultant, contractor or subcontractor on the basis of gender, race or national origin,or other such factors,but rather to create an opportunity for small businesses and DBEs. MBEs, WBEs, and all qualified vendors, consultants. contractors and subcontractors to participate in the County's formal competitive processes. Nothing in this Policy shall be construed to provide for or require any preference or set-aside based on gender, race, national origin or any other such factor. 14 Packet Page-2774- 12/10/2013 17.J. B. Implementing Measures: In an effort to implement this policy, the County may undertake the following measures: 1. Designate the Purchasing Director to administer this policy. 2. Utilize outreach programs to identify, register and educate small businesses and DBEs. MBEs and WBEs to participate in the procurement/contract process which may include: a. Attending trade fairs which include representatives from these enterprises. b. Attending meetings and social events wherein these enterprises are present. c. Utilizing publications aimed at reaching these enterprises. d. Utilizing Purchasing Directories and other reference sources that list these enterprises. e. Publicizing this Policy to encourage these enterprises to participate in the County's procurement process. f. Other actions designed to identify opportunities for these enterprises who seek �* to provide commodities and services to the County. 3. Maintain a list of these enterprises. 4. Disseminate information regarding competitive opportunities with the County in order to allow qualified small businesses and DBEs,MBEs and WBEs to participate in the County's procurement process. C. Conformity with Applicable Law: The provisions of this section shall be construed in conformity with applicable state and federal law. To the extent that state law conflicts with federal law,federal law shall supersede such state law. SECTION FIFTEEN: Procedure to Provide Preference to Local Businesses in County Contracts. Except where otherwise provided by federal or state law or other funding source restrictions or as otherwise set forth in this Purchasing Ordinance. purchases of commodities and services shall give preference to local businesses in the following manner: (1) "Local Business"defined Local business means the vendor has a current Business Tax Receipt issued by the Collier County Tax Collector for at least one year prior to bid or proposal submission to do business within Collier County. and that identifies the business with a permanent physical business 15 Packet Page-2775- 12/10/2013 17.J. address located within the limits of Collier County from which the vendor's staff operates and performs business in an area zoned for the conduct of such business. A Post Office Box or a facility that receives mail, or a non-permanent structure such as a construction trailer, storage shed, or other non-permanent structure shall not be used for the purpose of establishing said physical address. In addition to the foregoing, a vendor shall not be considered a "local business" unless it contributes to the economic development and well- being of Collier County in a verifiable and measurable way. This may include, but not be limited to,the retention and expansion of employment opportunities,support and increase to the County's tax base, and residency of employees and principals of the business within Collier County. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to be eligible for consideration as a"local business" under this section. A vendor who misrepresents the Local Preference status of its firm in a proposal or bid submitted to the County will lose the privilege to claim Local Preference status for a period of up to one year. (2) Preference in purchase of commodities and services by means of competitive bid, request for proposals, qualifications or other submittals and competitive negotiation and selection. Under any such applicable solicitation, bidders/proposers desiring to receive local preference will be invited and required to affirmatively state and provide documentation as set forth in the solicitation in support of their status as a local business. Any bidder/proposer who fails to submit sufficient documentation with their bid/proposal offer shall not he granted local preference consideration for the purposes of that specific contract award. Except where federal or state law,or any other funding source,mandates to the contrary, Collier County and its agencies and instrumentalities, will give preference to local businesses in the following manner: (a) Competitive bid (local price match option). Each formal competitive hid solicitation shall clearly identify how the price order of the bids received will he evaluated and determined. When a qualified and responsive, non-local business submits the lowest price bid, and the bid submitted by one or more qualified and responsive local businesses is within ten percent of the price submitted by the non-local business,then the local business with the apparent lowest bid offer(i.e.,the lowest local bidder) shall have the opportunity to submit an offer to match the price(s),less one(I)dollar,offered by the overall lowest,qualified and responsive bidder. In such instances,staff shall first verify if the lowest non-local bidder and the lowest local bidder are in fact qualified and responsive bidders. Next, the Purchasing Department shall determine if the lowest local bidder meets the requirements of Fla. Stat. Sec.287.087 (Preferences to businesses with drug-free workplace programs). If the lowest local bidder meets the requirements of Fla. Stat. Sec. 287.087, the Purchasing Department shall invite the lowest local bidder to submit a matching offer, less one (1) dollar, within five (5) business days thereafter. If the lowest local bidder submits an offer that fully matches the lowest bid, less one (1) dollar, from the lowest non-local bidder tendered previously, then award shall be made to the local bidder. If the lowest local bidder declines or is unable to match the lowest non-local bid price(s), then award will be made to the lowest overall qualified and responsive bidder. If the lowest local bidder does not meet the requirement of Fla. Stat. Sec 287.087, and the lowest non-local bidder does, award will be made to the bidder that meets the requirements of the 16 Packet Page-2776- 12/10/2013 17.J. Amok reference state law. (b)Request for proposals. qualifications or other submittals and competitive negotiation and selection. For all purchases of commodities and services procured through the Competitive Proposals(Section 12) or Competitive Selection and Negotiation (Section 11) methods not otherwise exempt from this local preference section, the RFP solicitation shall include a weighted criterion for local preference that equals 10 percent of the total points in the evaluation criteria published in the solicitation. Purchases of professional services as defined and identified under subsection 11B.2 (which are subject to Section 287.055, F.S.) and subsection 118.3 (which are subject to Section 11.45,F.S.)shall not be subject to this local preference section. (3) Waiver of the application of local preference. The application of Local Preference to a particular purchase or contract may be waived upon approval of the Board of County Commissioners. (4)Comparison of qualifications. The preferences established herein in no way prohibit the right of the Board of County Commissioners to compare quality of materials proposed for purchase and compare qualifications, character, responsibility and fitness of all persons, firms or corporations submitting bids or proposals.Further,the preferences established herein in no way prohibit the right of the County Commission from giving any other preference permitted by law instead of the preferences granted herein. AMMitt (5) Reciprocity. In the event Lee County, or any other Florida county or municipality ("local government") deemed appropriate by the Collier County Board of Commissioners, extends preferences to local businesses, Collier County may enter into an interlocal agreement with such local government wherein the preferences of this section may be extended and made available to vendors that have a valid occupational license issued by that specific local government to do business in that local government that authorizes the vendor to provide the commodities and services to be purchased, and a physical business address located within the limits of that local government. Post Office Boxes are not verifiable and shall not be used for the purpose of establishing said physical address. In addition to the foregoing,a vendor shall not be considered a "local business" unless it contributes to the economic development and well-being of the said local government whichever is applicable, in a verifiable and measurable way. This may include, but not be limited to, the retention and expansion of employment opportunities,the support and increase to that local government's tax base, and residency of employees and principals of the business located within the limits of that local government. Vendors shall affirm in writing their compliance with the foregoing at the time of submitting their bid or proposal to he eligible for consideration as a"local business"under this section. In no event shall the amount of the preference accorded other local government firms exceed the amount of preference that such local government extends to Collier County firms competing for its contracts. (6) Purview and administration of this Local Preference Policy. This policy shall apply to all departments and units under the direct purview of the Board of County Commissioners. For purchases of $50,000 or less, the Purchasing Department shall systematically encourage 17 Avow Packet Page-2777- 12/10/2013 17.J. departments to include local vendors when soliciting quotations in accordance with this policy. SECTION SIXTEEN: Payment of Invoices. A. Agencies under the purview of the Board of County Commissioners shall be in compliance with Fla. Stat. Sec. 218.70, otherwise known as the "Local Government Prompt Payment Act." Pursuant to this,the requirements of this section shall apply to the following transactions: 1. The purchase of commodities and services; 2. The purchase or lease of personal property; 3. The lease of real property. r . .e CommentjAiZ]:Change notaccePted, o ... ,...'rx.-_. .... - ---- authorization will°be made lY BCC during disbursement appnnal..It-is not efficient to GB. The County Manager shall establish and maintain a process that authorizes the payment of tndwduauYtake these issues to the BCC freight and delivery charges that are not specifically identified on the purchase order of less than 5% of the purchase order or$500 whichever is less, commentjnl3):Change not accepted.This would not be manageable on small dollar orders and could result In bills not being timely paid. 44C. It shall be the responsibility of the County Manager.in consultation with the Clerk's Finance Director and operating departments, to establish procedures for the timely payment of all transactions as defined under subsection 16.A hereof. Such procedures shall include, but are not limited to the following: 1. Formally defining the County's requirements for the content and submission of a proper invoice, codifying the County's payment requirements and notifying each vendor of their availability. 2. Steps required for the receipt of all invoices and the prompt return of improper invoices. Steps required for the resolution of payment disputes between the County and a vendor. 1=t}. Each December. the Purchasing Director and the Clerk of the Courts pittance Director shall ••{comment1Alal:change accepted j submit a report to the Board listing the number and total dollar amount of interest penalty payments made during the preceding fiscal year bursuant to Florida Statute 218 {commenttAisl:Change accepted j SECTION SEVENTEEN: Advanced Payments for Goods and Services. Procedures for the pre-payment of goods and services with County funds including. but not limited to, dues and membership, insurance. maintenance agreements, subscriptions, travel arrangements, postage, and other purchases as prescribed by the Department of Financial Services 18 Packet Page-2778- 12/10/2013 17.J. khrouaht their Administrative Rules. - : ': -. - . :.: {commentlA1el:change accepted ) . - • - - "• - _ • - As provided for in Fla. Stat. Sec. 28.235, the Clerk of the Circuit Court is authorized to make advanced payments on behalf of the County for goods and services based on those established procedures. SECTION EIGHTEEN: Standardization, Cooperative Purchasing Organizations and Governmental Contracts A. Where standardization is determined to be desirable by the Board of County Commissioners or included in the Purchasing Manual, the purchase of commodities may be made by negotiation with the approval of the purchase by the Board. B. Annually,the Board of County Commissioners will approve a list of authorized purchasing cooperative organizations and governmental schedules and contracts. The Purchasing Director may approve purchases using these approved cooperative organizations, agreements and contracts with no further action required by the Board providing that funds have been budgeted for these specific purposes. Additionally, the Purchasing Director may join other public agencies in cooperative purchasing organizations and/or agreements if is determined to be in the County's best interest�as approved by the Board, :,- - • - _ comment IA17]:Change not accepted.Too . •' -L - _ ., -. y vague.prefer the proposed language which.requires BCC approval before using any contracts. SECTION NINETEEN: Contract Administration. A. Contract Document: Every procurement of contractual services or commodities shall he evidenced by a written document containing all provisions and conditions of the procurement. Said document shall include,but not be limited to: 1. A listing of the scope of services to he performed or commodities to be purchased. 2. A provision specifying the criteria and the final date, or number of days, by which such criteria must he met for completion of the work. 3. A provision specifying the terms of cancellation by the County and where applicable. a provision specifying the terms of renewal. 4. Where applicable, a provision establishing the appropriate types and levels of insurance to be carried by the vendor. Said provision shall he employed in a manner consistent with minimum insurance standards approved by the Board of County Commissioners. 5. A provision requiring the contractor/vendor to inform the County if he/she has been convicted of a public entity crime subsequent to Jul • I, 1989. A purchase order that embodies these provisions shall be sufficient documentation of the procurement. Except as otherwise provided in this Purchasing Ordinance, the Purchasing Director 19 Amok Packet Page-2779- 12/10/2013 17.J. shall determine the circumstances under which a Board approved purchase order(and all documents included by reference)shall serve as the contract document. B. Contract Manager: Every procurement of services shall be administered by the requesting Agency/Department. C. Contract Changes: Notices issued under a purchase order or contract may be authorized and executed by the Purchasing Director, except notices that terminate a Board-approved purchase or contract in its entirety. Modifications to a Board approved purchase or contract, including but not limited to change orders,direct material purchases,notices to proceed or non-compliance,stop work notices,use of approved allowances between line items. supplemental agreements.amendments and changes by letter may be authorized and executed by the Purchasing Director provided that the total of all changes In the as reeate in a contract is uiot more than ten (10)percent of the current Board :Comment jassl:c.nsenat&ceptalttaer approved dollar amount. Such changes shall be reported monthly to the Board for approval by C rC°feoarts.Ai x"ng"'"tibeieporetl1othe ° BCC etthet Vie report orindividuity as per current ratification. All material changes in scope of agreements must be approved by the Board in advance. Practice The proviso at the end of the previous paragraph shall not he applicable to term contracts or blanket purchase orders where the County desires to procure commodities and/or services on an as needed basis without having to obligate itself to a total contract amount. Rather, such purchases shall be based on fixed unit prices or other predetermined pricing methods and shall he limited in quantity by the amount of funds appropriated in the budget of the operating department(s). Such purchases shall be subject to all other provisions of this Purchasing Ordinance. Notices that terminate an entire purchase or contract that was Board approved and contract modifications that increase the total contract amount beyond the limits set forth above as applicable, shall require the approval of the Board of County Commissioners. The Board shall have broad authority, within the limits of the law, to evaluate and approve any recommended contract modification without requiring further competition. D. Contract Extension: Extension(s) of a Board-approved contract for commodities or non- construction services may be requested by the contract manager to the Purchasing Director in writing for a period not to exceed six(6) months(cumulatively)and shall be subject to the same terms and conditions set forth in the contract, if the extension period is provided for in the Board approved contract. The Purchasing Director shall have the authority to authorize and execute all such extensions, which must be issued prior to the expiration of the contract. Any extension(s) that exceed six months(cumulatively)shall be approved by the Board of County Commissioners. E. Contract Renewal: The Purchasing Director shall authorize and execute renewals of contracts for commodities and/or services prior to the expiration of the contractkt.nd subject to the comment Dun change notateepted.His understood that there Is nothing to renew if the following conditions: contract expired. I. That the Contractor has performed in a satisfactory manner and that the Purchasing Director has received a request to renew from the Contract or Project Manager verifying the Contractor's satisfactory performance. 20 Packet Page-2780- 12/10/2013 17.J. 2. That the Board approved agreement provided for a renewal and is renewed subject to the terms and conditions set forth in the initial contract. Cost and term modifications are addressed in the original solicitation document and/or resultant contract. 3. That the renewal is done for a set period of time identified in the solicitation document and/or contract,commencing at the end of the contract period. Proposed renewals that fail to meet one or more of the conditions set forth herein will require the approval of the Board of County Commissioners. F. Contract Approval: All contracts for commodities and services e - °, " ;shall be authorized by the Board of Commentja201:Change accepted.Aadedthat County Commissioners. - = - - • .- - -- . . -- . - -- aproaeddrewtnbedeve topeaforeffldendq • obtaining EICCapproval for snob purchase the Count) Attorne; staff and signed h) the Purchasing Director. contr as, G. Work Orders: The Purchasing Director may execute any work order if the work order is equal to or below such Board approval parameters for work orders as are set forth in the Board approved term contract for services under which the work order is generated. Work orders must be in sufficient detail to audit according to the approved contract. I-I. Consent to Assignments of Contract: For all contracts,the Board of County Commissioners shall approve all assignments of contracts requested by the predecessor contracting party. I. Authority Limitation and Delegation:Promulgation of Procedures: The Purchasing Director may delegate to one or more Purchasing Department employees any or all aspects of the authority vested in the Purchasing Director. All authority to execute documents that is vested pursuant to this Section 19 in the Purchasing Director or any other person shall be subject to the limits of any applicable federal, state or other law. J. Payments to Contractors. Vendors and Consultants Prior to the execution of a formal contract subject to this Purchasing Ordinance, the Purchasing Director shall establish a formal payment schedule and payment terms within the agreement. Such terms and conditions shall be consistent with the requirements of all applicable laws and the formal solicitation documents. In accordance with Fla. Stat. Sec. 218.735(8). the Purchasing Director may establish, subject to Board approval,procedures to reduce to 5%the amount of retainage withheld from each subsequent progress payment issued to a contractor where applicable.The Purchasing Director may establish,in writing, a schedule(s) to further reduce the percentage of cumulative retainage held throughout the course of the project schedule where warranted and according to law. Recommendation to reduce the percentage of cumulative retainage shall be subject to the following: 21 Packet Page-2781- 12/10/2013 17.J. 1. That the term "cumulative retainage" is defined to mean "the dollar total of the funds retained from all payments issued under the contract divided by the gross dollar total of all monthly pay requests(or the total of all payment amounts deemed allowable by the project manager,whichever is less)". 2. That any decision to reduce retainage shall be formally communicated in a letter to the Contractor's representative and that the letter affirmatively states that the Contractor has performed the contract work in a satisfactory manner. 3. That the cumulative retainage not be adjusted until at least 50%of the work has been completed and payment has been issued. 4. That the Purchasing Director's letter expressly sets forth the percentage of cumulative retainage to be held for the remaining pay requests. The Purchasing Director may authorize the partial release or payment of contract retainage to the contractor prior to final completion of all project work provided that: 1. The contractor has performed in a satisfactory manner to date as verified in writing by the Project Manager. 2. The total aggregate work under the agreement is at least 50%completed and accepted (i.e.; payments equaling at least 50%of the contract amount less retainage have been issued). 3. he retainage dollar amount to be released is based upon and consistent with the prevailing percentage of cumulative retainage being held at the time that the retainage is released. SECTION TWENTY: Performance and Payment Bonds. A contractor or vendor shall provide a surety bond from a surety company to guarantee full and faithful performance of a contract obligation and the payment of labor and material expended pursuant to a contract whenever,and in such amounts,as required by statute or otherwise as deemed necessary by the Purchasing Director. An irrevocable letter of credit from a financial institution operating within the State of Florida(or other alternative forms of surety as permitted under Florida law) may he sufficient in place of the performance bond if so provided for in the bid and contract documents.All such bonds or letters of credit shall be approved as to form by the Count)•Attorney, I and held by the Clerk's-Fri;an entBtaar'd'Minutes'•and Records Department {comment(auk:Change accepted. j SECTION TWENTY-ONE: Unauthorized Purchases. All purchases made shall be consistent and in compliance with the Purchasing Ordinance. Any purchase or contract made contrary to the provisions hereof and contrary to Florida law Oall {Comment[A22I:change accepted. not tcc:warily be approved and the County shall not be bound thereby. 22 Packet Page-2782- 12/10/2013 17.J. _ ._ • ---� Comment[A231 Changeaccepted tic - _ .. .. .:• _... .• -- ._ undbrainodtl+at'the Board can waive ltc policy If a •, mistakewaa made to authorize{a legitimate purchase and thlswouid only apply to tl legal pure& j SECTION TWENTY-TWO: Prohibition against Subdivision. No contract or purchase shall be subdivided to avoid the requirements of this Purchasing Ordinance or of State law. SECTION TWENTY-THREE: Protest of Bid or Proposal Award. The purpose of this section is to accommodate legitimate protests concerning formal competitive invitations to bid or requests for proposals and recommended contract awards above the formal competitive bid or proposal thresholds prior to award of a contract by the Board of County Commissioners. A. Any actual or prospective bidder or respondent to an Invitation to Bid or a Request for Proposal, who has a substantial interest and alleges to be aggrieved in connection with the solicitation or award of a contract,(hereafter referred to as"the protesting party")may protest to the Purchasing Director,who shall serve as the sole recipient of any and all notices of intent to protest and all formal protests. B. With respect to a protest of the terms, conditions and specifications contained in a solicitation, including any provisions governing the methods for evaluation of bids, proposals or replies, awarding contracts, reserving rights for further negotiation or modifying or amending any contract, the protesting party shall file a notice of intent to protest within three(3) days, excluding weekends and County holidays, after the first publication, whether by posting or formal advertisement of the solicitation. The formal written protest shall be filed within five(5)days of the date the notice of intent is filed. Formal protests of the terms, conditions and specifications shall contain all of the information required for formal protests of recommended contract awards as set forth under subsection C. The Purchasing Director,shall render a decision on the formal protest and determine whether postponement of the bid opening or proposal/response closing time is appropriate. The Purchasing Director's decision shall he considered final and conclusive unless the protesting party files an appeal of the Purchasing Director's decision. C. Any actual or prospective bidder or respondent to an Invitation to Bid or a Request for Proposal who desires to protest a recommended contract award shall submit a notice of intent to protest to the Purchasing Director within two (2) calendar days, excluding weekends and County holidays,from the date of the initial posting of the recommended award. D. All formal protests with respect to a recommended contract award shall be submitted in writing to the Purchasing Director for a decision. Said protests shall be submitted within five (5) calendar days. excluding weekends and County holidays, from the date that the notice of intent to 23 Packet Page-2783- 12/10/2013 17.J. protest is received by the Purchasing Director,and accompanied by the fee,as set forth below.The protesting party must have standing as defined by established Florida case law to maintain a protest. The formal protest shall contain,but not be limited to the following information: 1. Name and address of County Agency affected and the solicitation number and title. ?. The name and address of the protesting party. 3. A statement of disputed issues of material fact. If there are no disputed material facts,the written letter must so indicate. 4. A concise statement of the ultimate facts alleged and of any relevant rules, regulations,statutes, and constitutional provisions entitling the protesting party to relief. 5. The protesting party's entitled demand for the relief. 6. Such other information as the protesting party deems to be material to the issue. The formal protest shall contain all arguments, facts or data supporting and advancing the protestor's position. Under no circumstances shall the protestor have the right to amend, supplement or modify its formal protest after the filing thereof. Nothing herein shall preclude the County's authority to request additional information from the protesting party or other bidders or proposers in conjunction with the review and rendering of decisions on the protest,including any subsequent appeal. E. to the event of a timely protest of contract award consistent with the requirements of this section, the Purchasing Director shall not proceed further with the award of the contract until all appropriate administrative remedies as delineated under this section have been exhausted or until the Board of County Commissioners makes a determination on the record that the award of a contract without delay is in the best interests of the County.During this process.the protesting party shall limit their communications with the County to the Office of the County Attorney,and neither the protesting party, their agents or their representatives shall have any private contact or discussions with individual County Commissioners,the County Manager,other County employees, or any independent hearing officer (where applicable) regarding the protest except such communications as may be required or permitted during a hearing,if applicable.or a meeting of the County Commission wherein the solicitation or award is to he considered. F. The Purchasing Director shall review the merits of each timely protest and in consultation with the contract manager and other appropriate County staff,issue a decision stating the reasons for the decision and the protesting party's rights of appeal under this section. Said decision shall be in writing and mailed or otherwise furnished to the protesting party. The decision of the Purchasing Director shall he final and conclusive unless the protesting party delivers a subsequent written notice of appeal to the Purchasing Director within two(2) calendar days, excluding weekends and County holidays from the date of receipt of the decision. In filing a written objection to the Purchasing Director's decision, the protestor shall not introduce new arguments or alter in any other way their 24 Packet Page-2784- 12/10/2013 17.J. protest submission. An appeal of the Purchasing Director's decision shall be limited to a review of the grounds set forth in the formal protest,and no new grounds or arguments will he introduced or considered. G. In the event of a subsequent appeal pursuant to subsection F. the County Manager shall determine whether to appoint an independent Hearing Officer to review the formal protest and the Purchasing Director's decision. The Hearing Officer's review shall be limited to the grounds set forth in the formal protest, and shall be for the purpose of determining whether the County's intended action is arbitrary, capricious, illegal, dishonest or fraudulent. The protesting party shall have the burden of proof. The Hearing Officer shall consider the formal protest, the Purchasing Director's decision,and supporting documents and evidence presented at the hearing.In any hearing, irrelevant, immaterial or unduly repetitious evidence shall be excluded.All other evidence of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs shall he admissible whether or not such evidence would be admissible in a trial in the courts of Florida. The Hearing Officer may grant the motion of any person having standing under Florida law to intervene in the proceedings. Persons or parties shall have the right to he represented by counsel in the proceedings, to call witnesses, and present evidence; provided, however, that the Hearing Officer shall not have the right to compel attendance of witnesses or to permit or compel any discovery. The Hearing Officer will have a maximum of 60 days to schedule and conduct a hearing into the matter and issue a recommended finding of fact and an opinion in writing to the County Manager or designee for submission to the Board of County Commissioners. Should the Hearing Officer find in favor of the County.the protesting party pay, in full,the costs of the Hearing Officer. If the Hearing Officer's recommended decision is in favor of the protesting party.then the County will assume this cost. The County Manager's discretion as to whether to appoint a Hearing Officer shall in no way afford the protestor the right to demand such an appointment or hearing. The decision of a Hearing Officer on a protesting party's appeal shall he submitted to the Board for its consideration as part of a final award decision. Nothing herein shall be construed as creating a right of judicial review of the Hearing Officer's decision,nor shall such decision be binding upon the Board.Additionally,nothing herein shall be construed as limiting the Board's right to reject any and all bids or proposals. H. Decisions of the Purchasing Director and Hearing Officer (where applicable) will be provided to the protestor and other interested panics prior to the award recommendation being presented to the Board of County Commissioners. Neither the County Manager's decision nor the Hearing Officer's recommended decision shall he construed as an award recommendation triggering additional rights of protest pursuant to this policy. Notwithstanding anything set forth herein to the contrary. the Board of County Commissioners shall retain the authority to make the final award decision. I Failure to file a formal protest within the time and manner prescribed by this policy shall constitute a waiver of the right to protest by any protesting party as defined by subsection"A"of this policy. J. As a condition of filing a formal appeal to the Purchasing Director's initial finding, the protesting party shall submit a non-refundable filing fee for the purpose of defraying the costs of 25 Packet Page-2785- 12/10/2013 17.J. administering the protest.The filing fee shall be submitted with the formal protest.Failure to pay the filing fee shall result in the denial of the protest.The amount of the filing fee shall be as follows: Estimated Contract Amount Filing Fee $250.000 or less $500 5250.000.01 to$500,000 $1,000 $500,000.01 to$5 million $3,000 $5 million or more $5,000 This fee may be modified by Resolution of the Board of County Commissioners. SECTION TWENTY-FOUR: Contract Claims. All actual or prospective claims arising against the County from contractors, vendors or any other party in direct privity with the County to provide goods or services shall first be directly addressed by the parties' administrative representatives in a manner consistent with the agreement between the parties and in accordance with the County's procedures Manual. For any prospective or actual claims or disputes arising under any contract entered into by the County,the Purchasing Director bust determinethe facts ct'f1he dispute 1-•:. •. - : .- Comment TAM:Changes accepted. threshold limits of this policy All contract claims should he reported to the County Attorney's Office and Clerk's Finance for/roper documentation and recording and to the Board for determining action.: SECTION TWENTY-FIVE: Exigent Circumstances, Emergency and Board Absence Purchases. In case of an exigent circumstance, which is defined as any circumstance requiring immediate action or attention, a valid public emergency, or during the Board's extended recess session(s) ka11efforts.should be made:Ito obtain Board approval prior_to anticipated_recesses) ..• {Comment IA253:Changes accepted j whereby a purchas • - - • - .. . is necessary, the County Manager shall authorize the Purchasing Director to secure by open market procedure as herein set forth, any commodities or services. The County Manager shall have the authority to take actions including, but not limited to the issuance of contracts, change orders, and/or supplemental agreements. Any action shall be reported at the first ai fable-meeting of the Board of County -.Comment(P.261 Change notaccapted t Commissioners. The County Manager under the same consultations noted above shall further be Available is mints°designate a meeting et which action can be taken. authorized to approve payment(s) to vendors at the time of or shortly after purchase should the circumstances warrant. These payments shall he reported at the first available-meeting of the Board. This section in no way constrains the provisions of Collier County's Civil Emergency ordinances or powers and authority pursuant to Fla.Stat.ch.252.Emergency Management. 26 Packet Page-2786- 12/10/2013 17.J. Alow SECTION TWENTY-SIX: Inspection and Testing. The Purchasing Director shall inspect, or supervise the inspection of, or cause to be inspected, all deliveries of commodities or services to determine their conformance with the specifications set forth in an order or contract. A. Inspection by Operating Department: The Purchasing Director shall authorize operating departments to inspect all deliveries made to such operating departments under rules and regulations which the Purchasing Director shall prescribe. B. Testing: The Purchasing Director shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. In the performance of such tests, the Purchasing Director shall have the authority to make use of laboratory facilities of any Agency of the County or of any contracted outside laboratory. SECTION TWENTY-SEVEN: Purchasing Card Program. The Purchasing Director shall be responsible for the overall management and operation of the County's purchasing card program. For the purpose of this Purchasing Ordinance, a purchasing card is a credit card officially assigned to specific employees under the purview of the Board of Commissioners'agency for the purpose of transacting small and/or strategic,contract.travel related, and other purchases made according to Section Eight and approved by the Board,. The eommentjA273:changenoteaeptea. Purchasing Director shall be authorized to assign cards to employees for these purchases. The ApprovaiWiU be obtatned through agreed upon Purchasing Director shall be responsible for establishing the following dollar limits for each p'D0°dun apvloaburxmtntu5e j assigned card: A. Single Transaction Limit: Not to exceed$1.000 per card unless otherwise authorized by the Purchasing Director. B. Monthly Spending Limit: Not to exceed 510.000 per card unless otherwise authorized by the Purchasing Director. C. Strategic Purchases: The Purchasing Director may utilize(or delegate the authority to other Agency staff to utilize) a purchasing card to place orders that exceed the limits set forth under this section in instances where one or more of the following is true: I. Where the purchase is to address a valid public emergency:or 2. Where the County will earn revenue through card program rebates:or 3. Where a vendor is requiring the County to order by purchasing card. D. Sales Tax Compliance: Pursuant to Section 212.08(6), F.S.. County purchases transacted with vendors within the State of Florida are exempt from the state sales and use tax. In such 27 Packet Page-2787- 12/10/2013 17.J. instances, it is the responsibility of the cardholder to provide the vendor with the appropriate tax exemption information when the card is presented to the vendor. In the event that the cardholder fails to provide the vendor with the appropriate tax exemption information when the card is presented the cardholder may be responsible for payment of the tax. ! - ..• Cornmeal/420 Change not accepted.At the . s test meeting the SCCagreed to this sndfurtbe,' agreed that lt#s.not a valid purpose to spend mom Ct:ent that the total sale exceeds$300,the cardholder's Director is responsible to ensure the tax is ,nonMinedminiet ration that the+/aweofthe -- • • ,expepoltors ., The Purchasing Director shall ensure that the purchase has been approved subject to all other provisions of this policy. All fixed assets purchased using a purchasing card shall be properly reported to the Fixed Assets Section of the Clerk of Courts Finance Division so that it can be properly recorded. SECTION TWENTY-EIGHT: Conflict of Interest. When procuring commodities or services using County funds, each entity and employee under the purview of the Board of County Commissioners shall comply with all applicable state and federal laws concerning ethics and conflict of interest. For state or federally funded projects,County entities and employees shall comply with all legal requirements, including the requirements of Part 85.Section 36(b)(3)of the Housing and Urban Development Code. SECTION TWENTY NINE: Debarment and Suspension. The County Manager may suspend and/or debar vendors, contractors, consultants and other interested and affected persons from active participation in obtaining County contracts upon approval of the Board. The purpose of any such action shall be to protect the County's interests and the integrity of the County's contracting process. The suspension and debarment processes shall be considered to be separate from and in addition to the award evaluation and vendor performance evaluation processes authorized elsewhere in this Purchasing Ordinance A. Definition of Terms: For the purposes of this section,the following terms have been defined as follows: 1. Affiliate refers to associated business entities or individuals that control or could control the contractor or are controlled by the contractor or could be controlled by the contractor. 2. Civil Judgment refers to a judgment or finding of a civil offense by any court of competent jurisdiction. 3. Contractor means any individual or legal entity that: a. Directly or indirectly (e.g.: through an affiliate), submits offers for or is awarded, or reasonably may be expected to submit offers for or be awarded, 28 Packet Page-2788- 12/10/2013 17.J. a County contract for construction or for procurement of commodities and services,including professional services;or b. Conducts business,or reasonably may be expected to conduct business,with the County as an agent, surety, representative or subcontractor of another contractor. 4. Conviction means a judgment or conviction of a criminal offense, felony or misdemeanor, by any court of competent jurisdiction. whether entered upon a verdict or a plea,and includes a conviction entered upon a plea of nolo contendere. 5. Debarment means action taken by the County to exclude a contractor from County contracting and County-approved subcontracting for a reasonable,specified period as provided herein. 6. Preponderance of the Evidence means proof by information that,compared with that opposing it.leads to the conclusion that the fact at issue is more probably true than not. 7. Subcontractor: Any individual or legal entity that offers or agrees to provide commodities or services to a party deemed to be a contractor under this section. 8. Suspension refers to action taken by the Purchasing Director to temporarily disqualify a contractor from County contracting or County-approved subcontracting pending action of the Board. B. Suspension: The Purchasing Director shall have the authority to recommend to the Board the suspension of a contractor.subcontractor or person from consideration for award of contracts if there appears to be a reasonable basis for debarment as set forth herein. If a suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. The suspension period shall not exceed three months without the approval of the County Manager. C. Debarment: t. Causes for IDebarment: The prospective causes for debarment include one or more of the following: a. Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a public or private contract or subcontract. or in the performance of such contract or subcontract. b. Conviction under state or federal law of embezzlement.theft. forgery.bribery, falsification or destruction of records.receiving stolen property, or any other offense indicating a lack of business integrity or business honesty which currently,seriously and directly affects responsibility as a contractor. 29 Packet Page-2789- 12/10/2013 17.J. c. Conviction under state or federal antitrust laws arising out of the submission of bids,proposals or other competitive offers. d. Violation(s) of County contract(s) provisions, which is (are) deemed to be serious and to warrant debarment,including the failure,without good cause,to perform in accordance with the terms, conditions, specifications, scope, schedule or any other provisions of the contract(s). e. Refusal to provide bonds, insurance or other required coverage and certifications thereof within a reasonable time period. f. Refusal to accept a purchase order, agreement or contract, or perform accordingly provided such order was issued timely and in conformance with the solicitation and offer received. g. Presence of principals or corporate officers in the business of concern, who were principals within another business at the time when the other business was suspended or debarred within the last three years under the provisions of this section. h. Violation of the ethical standards set forth under applicable state or county laws. i. Debarment of the contractor by another public agency. j. Any other cause deemed to be so serious and compelling as to materially affect the qualifications or integrity of the contractor. 2. Procedure: a. The county department requesting the suspension or debarment action shall submit to the Purchasing Director a written complaint setting forth the reason(s)for seeking debarment and shall identify a recommended debarment period. b. The Purchasing Director shall review the complaint, verify whether it is compliant with the provision of this Purchasing Ordinance, direct any appropriate changes and forward the complaint to the contractor. c. The contractor shall review the complaint and shall provide a written response (with supporting documentation) to each allegation. The response shall be provided to the Purchasing Director within ten(10)business days of receipt of the notice of allegations. In the event that the contractor fails to respond to the complaint within the prescribed time period, the complaint, as forwarded to the contractor, shall become an effective suspension or debarment decision without further appeal. 30 Packet Page -2790- 12/10/2013 17.J. d. In the event that the contractor tiles a timely and complete response to the complaint and the suspension or debarment action is based upon a conviction, judgment or other event(s)where there is no significant dispute over material facts, the Purchasing Director shall determine the period of recommended suspension or debarment on the basis of the undisputed material information set forth or referenced in the complaint, the contractor's reply and the parameters set forth in this section. In the event that the Contractor objects to the Purchasing Director's recommendation, the Contractor shall have a maximum of three business days to file an appeal of the debarment decision with the Purchasing Director. The appeal will be forwarded to and considered by the County Manager.who will review the record compiled by the initiating department and the contractor. Should the County Manager overturn the Purchasing Director's decision: the County Manager shall formally cite the reasons for doing so. e. In the event that the contractor files a timely and complete reply to the complaint and where the facts are in dispute, the Purchasing Director will convene a committee(hereinafter referred to as"the committee")consisting of at least three individuals who will review the complaint and the contractor's reply. The County Manager shall formally appoint the committee,which will generally consist of county employees, none of whom shall be a member of the department initiating the complaint. At the discretion of the County Manager, a member from private industry with a particular area of relevant expertise may be appointed to the committee,provided that this member is not a direct or indirect competitor of the firm in question. The Office of the County Attorney shall appoint a representative to attend the hearing. The representative shall not he considered a voting member of the committee, but shall be available to provide legal counsel to the committee as necessary. All members appointed to serve on the debarment committee shall disclose,to the Purchasing Director any actual or prospective conflicts of interest at the time of appointment or at the time in which the member becomes aware of the actual or prospective conflict. f. The Purchasing Director shall chair the committee and serve as the Purchasing Department's representative to the committee. The Purchasing Director shall preside over and facilitate the deliberations of the committee as a non-voting member and serve as the County's liaison to the Contractor. All voting committee members are prohibited from having any communication regarding the issue outside the committee deliberations with any of the parties involved in the specific suspension or debarment or their representatives until after the committee decision has been issued or. in the event of an appeal of that decision by the contractor, until the conclusion of the appeal process. All committee deliberations are subject to Section 286.011 Fla.Stat. g. Where the material facts are in dispute, the committee shall evaluate the evidence, judge the credibility of witnesses and base its decision upon the preponderance of the evidence. Should the contractor fail to appear at the 31 Packet Page -2791- 12/10/2013 17.J. hearing, the contractor shall be presumed to be unqualified and or non- responsive and shall be subject to suspension or debarment. The committee decision shall be by a majority vote of those voting members in attendance. The committee shall be the sole trier of fact. In the event that the committee decides to impose suspension or debarment, the decision will formally include,but not be strictly limited to the following information: 1) The specific reasons for the action; 2) The scope of the suspension or debarment;and 3) The period of suspension or debarment, including the effective and expiration dates. The committee's decision shall be issued in writing within 20 business days of the conclusion of the hearing unless the committee extends this period for good cause. h. The Purchasing Director shall forward the committee's decision to the contractor and affiliates involved. Should the contractor object to the committee's decision, the contractor shall have a maximum of three business days to file an appeal of the decision with the Purchasing Director. The appeal will be forwarded to and considered by the County Manager, who will review the record compiled by the initiating department, the contractor and the committee. Should the County Manager overturn the committee's decision;the County Manager shall formally cite the reasons for doing so. Final recommendation for debarment shall be approved by the Board. 3. Debarment Period: a. The committee shall recommend the period of debarment. The debarment period shall be commensurate with the severity of the cause(s) and approved by the Board. b. The committee(having the same or different composition)may recommend to the Board a reduction in the debarment period upon a written request from the contractor to do so,based on one or more of the following reasons: 1) Newly discovered material evidence; 2) A reversal of the conviction,civil judgment or other action upon which the debarment was based; 3) Bona fide change in ownership or management: 4) Elimination of other causes for which the debarment was imposed;or 5) Other reasons that the committee might deem appropriate. The contractor's request shall be submitted to the Purchasing Director in writing and shall be based on one or more of the aforementioned reasons. 32 Packet Page -2792- 12/10/2013 17.J. oak c. The decision of the Board regarding a reduction of the debarment period is final and not subject to appeal. 4. The Effects of Debarment: a. Debarred contractors are excluded from receiving County contracts. Departments shall not solicit offers from, award contracts to, or consent to subcontractors with debarred contractors, unless the County Manager in consultation with the Board Chair or Vice-Chair determines that emergency or single source conditions exist and grants written approval for such actions. Debarred contractors are excluded from conducting business with the County as agents.representatives,subcontractors or partners of other contractors. b. The Purchasing Department shall notify all Board departments of the final debarment decision and the effects of that decision with regard to conducting business with the debarred entity(ies)during the debarment period. 5. Continuation of Current Contracts: a. Departments may not renew or otherwise extend the duration of current contracts with debarred contractors in place at the time of the debarment unless the Board determines that it is in the best interests of the County to allow the contractor to continue or finish the work within an additional, limited period of time. b. Debarment shall constitute grounds for terminating an open agreement with a contractor. However,the contract manager may,with Board approval,permit completion of an open contract(s) provided that the debarred contractor has performed in a satisfactory manner to date under the open contract(s) unless otherwise directed by the Purchasing Director. 6. Restrictions on Subcontracting: a. When a debarred contractor is proposed as a subcontractor for any subcontract subject to County approval, the department shall not consent to subcontracts with such contractors unless the County Manager in consultation with the Chair or Vice-Chair determines that emergency or single source conditions exist.thus justifying such consent and approves such decision. b. The County shall not be responsible for any increases in contract costs or other expenses incurred by a contractor as a result of rejection of proposed subcontractors pursuant to subsection 6.a provided that the subcontractor was debarred prior to the submission of the applicable bid or proposal offer. 7. The Scope of Debarment: Debarment applies to all officers, Directors. Managers. principals,Purchasing Directors.partners.qualifiers.divisions or other organizational elements of the debarred contractor, unless the debarment decision is limited by its 33 Packet Page-2793- 12/10/2013 17.J. terms to specific divisions, organizational elements or commodity/services. The committee's decision includes any existing affiliates of the contractor if they are specifically named and are given written notice of the proposed debarment and an opportunity to respond. Future affiliates of the contractor are subject to the pre- existing terms of the committee's decision. SECTION THIRTY: Waiver of Ordinance. The Board of County Commissioners shall have the authority to waive any and all Purchasing Ordinance provisions within lawful guidelines and upon formal Board action. SECTION THIRTY-ONE: Conflict and Severability. In the event this Purchasing Ordinance conflicts with any other ordinance of Collier County or other applicable law,the more restrictive shall apply. If any phrase or portion of the Purchasing Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THIRTY-TWO: Inclusion in the Code of Laws and Ordinances. The provisions of this Purchasing Ordinance shall become and be made a part of the Code of Laws and Ordinance of Collier County, Florida. The sections of the Purchasing Ordinance may be renumbered or relettered to accomplish such, and the word `ordinance" may be changed to "section,""article,"or any other appropriate word. SECTION THIRTY-THREE: Effective Date. This Purchasing Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County,Florida,this day of .2013. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK,Clerk COLLIER COUNTY.FLORIDA By: By: ,Deputy Clerk GEORGIA A.HILLER,ESQ. CHAIRWOMAN Approved as to form and legality: 34 Packet Page-2794- 12/10/2013 17.J. Jeffrey A. Klatzkow County Attorney 35 Packet Page -2795- 12/10/2013 17.J. November 12, 2013 program so that staff can go out and be prepared to take advantage of opportunities that may present themselves. But I think this whole thing is upside down, I think we're trying to justify buying a piece of property. May well be a good one, but I think we've got a w le process backwards. CHAIRWOMAN HILLER: Well,just in conclusion, . t mi. going to call the question, Commissioner Henning and C m, er Coyle are both correct. And at this point in time there •e no � � further action on this item. But Commissioner Coy : ally Commissioner Coyle and Commissioner Nance :, -y tam ect on the back side and that is that staff should be eval go,. ^ _ . y available lands for sale in light of the various projects tha ebvi additional space. Whether it's the evidence room or ', m A isor of election or any other project out there where we e a ' eed for land. So nothing that we're voti g m a A :? precludes staff from, you know, looking at site option ?vi . , - t projects that have site needs and bringing a list of a u ' sba ` to us. Whether that does or doesn't include this site �' .taff s determination, because it has to be financially feasib -. . , And so we have a motion and a second on the tab II 34 i And with that, : in vor? COM,4 ' I I l FIALA: Aye. COM ot S *.:, ER HENNING: Aye. CH A% JbNERNANCE I.' WIRMAN HILLER: Aye. C;r : Aye. opposed? i t< ISSIONER COYLE: Aye. AIRWOMAN HILLER: Motion carries 4-1 with Commissioner Coyle dissenting. Item #12A Page 69 Packet Page-2796- 12/10/2013 17.J. November 12, 2013 Aosiso AUTHORIZING THE COUNTY ATTORNEY TO ADVERTISE AND BRING BACK FOR A FUTURE PUBLIC HEARING A PURCHASING ORDINANCE — DISCUSSED AND CONTINUED TO AFTER THE LUNCH BREAK a MR. OCHS: Commissioners, that takes you to your 11,4 . time certain. It's Item 12.A on your agenda. It's a reco • , ,• that the Board of County Commissioners authorizes th; lia,0 0 A Attorney to advertise and bring back for a future p .g t ,ing a purchasing ordinance. N lk MR. KLATZKOW: Briefly, Commissi• • - overview mostly to the public, as you're all aware o 1 -"s asked to work with the Clerk's Office and staff to come u t • , .„.urchasing ordinance. What I did was I took our . _ en.purchasing policy and I put it into ordinance form. Staff h.. l - changes they wanted, Clerk has some changes that he w.k , e . • ose changes were agreed ' i ”" upon and are part of the purc r _ :f • a• n a c e being presented. There are a number o , owever, that despite I think really good efforts by both th- ,people and staff, they were unable to come to agreeme At '',;,:j «F ith the best of intentions on both pa rti es. Therefore, v-, w think they should be set up is talk about the areas o t, •i I, `'' ence1.i. to focus on that and get Board direction from you as to w'-: yob' ant in your purchasing ordinance. C . i, OMAN HILLER: All right, thank you S• r - y all we're going to address as part of this discussion is rve is a difference of position within the proposed ordinance, an e e going to support where staff and the Clerk's Office are in agrees, _, . t, and there will be no further discussion on that, since it's pulled from the policy which we support historically. COMMISSIONER FIALA: Let me ask a question. CHAIRWOMAN HILLER: Yes. COMMISSIONER FIALA: We were just handed this. I haven't Page 70 Asok Packet Page-2797- 12/10/2013 17.J. November 12, 2013 been able to look through it or see anything. Is this the same as what's in here or is it a new document? MR. BROCK: It is my talking point. COMMISSIONER FIALA: Pardon me? MR. BROCK: It is the power point of my talking points.'- I mean, Commissioners, you know, so we can narrow t W '- from the perspective of the Clerk, your purchasing policy.' %. purchase policy, not mine. My role is separate and dis r :',,in the Board of County Commissioners as the Clerk of th-. r�..' Court. r .urchasin The problem I have with the current practi gin Collier County is its attempt to delegate discr-, ' recisions to tY P g staff, which by both my reading of the Fl. *a are . d the Ti Attorney General's reading of the Florida '`6 F- ‘'.1 of be done. And as a consequence of that, my focus is - -do :.nantly almost exclusively with regard to you c. ' • •t you're attempting to do. And the Clerk's Office as a c' s ,�• : - - a,'t pay the bills. g ( The thing that -- and the l eason at I'm really here is from . the perspective of I want tf -N k ith the Board and try to work out a solution that works for 4 - o E-. County staffs position is one of well, we just ca ;• . • :111!'' - ithout having that discretion. And, you know, when I'm co Rent- i. with that, you know, you put me between a rock and h: - •lac-. You 0 ‘ t"-,thing that brought this to my attention was I'm sitting a t . - .t ,required ethics conference that all elected officials are now h tgo to, and the president of the Senate stands at a lu '� wit- - a key note speech and makes the astute observation that thecler the Circuit Court in Okaloosa County is living in disgrace as a c equence of him not following the law. I sent to you a copy of the Attorney General's opinion with regard to their audit of that situation in Okaloosa County. The scenario there was basically that the Board had delegated its responsibility to others. And as a consequence, what transpired was Page 71 Packet Page-2798- 12/10/2013 17.J. November 12, 2013 the Tourist Development Council coordinator was buying houses all over the place, buying yachts in which the bill came through defined as advertising. When this was discovered, the legislative --joint legislative auditing committee directed the Auditor General go audit them. Shortly after this particular audit report came out they s t them out on another task to audit the additional items and to :'• i e Clerk's Office with regard to their activity. I don't know about anybody else, but nobody has - : 1 e but once and I get the message. We won't be doing thi ° ' , • e: in Collier County. The Clerk will follow the law. ;'-. ,', There are ways to do this that minimize -4 ct on everyone. When I look through the process that has 1 n .ted by county staff, the common thread or theme or man = t is going to cost us so much money to do this Well, I m-- , ye , I mean, if you have an objective out there to try to make it,01/.. much as possible, yeah, you're going to run into those<, ; • can't g g b 4,-ms. But cost can t circumvent the law. But they,-; ays to �o this in such a way as to minimize the impact and s1 's. oi t the taxpayers. That's my objective here, and that'. tot •.%,e` we're going to be coming from. And I'm goii§ 'r} , • I u some of the things that have been going on in this cou li the we have caught, we have dealt with. And you have oe 44' ing '". •m the Board today that I asked to be pulled with regard Ala t ist development contract for advertising in which the langu. in le proposal that is being submitted says we're going to dele t,°, 310 e Tourist Development Council -- 6 SIONER HENNING: We know. N . ROCK: -- through some language the authority to enter into t ontract. Commissioners, you know, the problem with that is that's not authorized either by state statute and that has been not recognized by this Board in as late as 2013 in the passage of the County Administrator's Act in which you basically regurgitated in your Page 72 Packet Page-2799- 12/10/2013 17.J. November 12, 2013 ordinance the language right out of the statute. And we'll go from there and I'll let them present. MR. OCHS: Commissioners, I have a fundamental and serious concern with the Clerk's position on your purchasing policy. Vhat he said to you a minute ago was you can't do what you're attempffils to do. What we're attempting to do is no different than what w.: ' en the past 30 ears. In my conversation 't , doing for at least p y Y Clerk, he has told me that your policy is illegal based • :E . interpretation of a provision in a Florida statute tha 1 • ;: ed in 1974. Almost 40 years ago. that statute that he's referring. ,s ! e statute that Ironically, , the legislature adopted establishing a co a• 7• ' . .tor position in the State of Florida, specifically to allow t t z ..* `- .,t.stator to run the day-to-day operations of the county a'AI to a ow the Board of County Commissioners to focus on their • o' i "Objectives of setting public policy and taking care of co situ= • ry e P Y g .- I don't know how you c• ' . , at ~our current policy is illegal lb '''''' when you look in your ex:, , E mmary and the person that you pay to give you le.al a• t=� � you that the current policy is not illegal. t t So we have th '- c°' n•" ` ental difference. And if it's illegal based on a provis' a n the ',74 statute and yet there's been disbursements of hundreds ,f mi tOns of dollars over that period of time, I don't know at °, •- 'nt it got illegal today when we have been operating as a co. �` , e that policy, which by the way is very similar to ktfeig - ,-ry other policy that we've reviewed across the State of Floc, da.% St$ f it was illegal in 1974, I don't know how we waited 'til 2013 to have this debate. I will say that with regard to if you do modify this policy, I will in fact need more resources. This policy provision as adopted, or proposed, I should say, by the Clerk, in my view doesn't add any value Page 73 Packet Page-2800- 12/10/2013 17.J. November 12, 2013 Amok to either the taxpayers or your vendors. In fact, it's going to create .; additional expense because I'm going to need more people in my purchasing department to take care of all of the solicitation and the paperwork and the reporting to the Board and the executive summaries and the other things that are going to be required ipu accept the proposition that in an $887 million corporation th. the board of directors can approve any purchase at any level .rit '' convene in public to do that in advance. And I'll leave ill t, ma'am. CHAIRWOMAN HILLER: If I may, befo - we've got two commissioners that would like to speak, Co ! ' '4 , -r enning and Commissioner Fiala. Is there a presentation that you were • ake? MR. BROCK: Yes. 46, CHAIRWOMAN HILLER: old the questions 'til both the Clerk and the County M.I ,a ` '=it respective presentations to the extent that they would .'' -..\\ 'ould at be acceptable or would you like -- COMMISSIONE G: I just have one question that Leo -- Leo you menti r;ol t µ•."d have to have more staff for these solicitations. You so `'tin it now under the bids, right, on the ., g � g $50,000 t s ? '. MR. • S. es, sir. But the Clerk wants us to bring all of those indi ' t u• , if they're not on a standard contract before the Board :• ins ires an executive summary. ... C. SIONER HENNING: Okay. Well, it's not going to be an, o ti- olicitations than it is now because you're required to get three s. That's a solicitation. MR. OCHS: Yes, we get three quotes -- COMMISSIONER HENNING: Three quotes. MR. OCHS: -- below $50,000, yes, sir. COMMISSIONER HENNING: Okay. So the only added Page 74 Ask Packet Page-2801- 12/10/2013 17.J. November 12, 2013 expense would be to create an executive summary to bring it back to the Board; is that a correct statement? MR. OCHS: No, sir. And the staff has that as part of their evaluation if we're allowed to present it and they can go into ore detail on that. COMMISSIONER HENNING: Yeah, I would. CHAIRWOMAN HILLER: So let's go ahead with ,, presentations. Who would like to begin? � k MR. BROCK: I'll let them go. They a n a l y z e . , what they analyzed. MS. PRICE: Good morning, Commissi• �b.; he record, Len Price, Administrative Services Division A -II ti t• I'm just going to go through the differ, - : . suggested by our County Attorney, and we can answer of r questions as we go along. Now, I have to tell you at F' '' t e we put this item on the agenda 'til today, I think that IN. oh,- i a few more of these differences. ; s„ CHAIRWOMAN ,.. ►:; :; : . Well, I would like you to only focus on what you hay-K .or .1,,1 :,-4`-' . MS. PRICE: ''., of '=� y. CHAIN '+ A ILLER: Do not address anything you have -- MS. P ' : E: . bsolutely. C .:,k ° 'i` 4 MAN HILLER: -- agreed to. Nit ,,Tv, And I just need to double check with Crystal and/or L .' ma e sure that my understanding that we've come to an ag - f,is accurate. Because we did spend countless hours trying to ge x ''narrow it down to just -- CHAIRWOMAN HILLER: And I really want to say -- MR. BROCK: You know, this has not been a knock-down drag-out. We worked cooperatively -- CHAIRWOMAN HILLER: Yeah, you have. Page 75 Packet Page-2802- 12/10/2013 17.J. November 12, 2013 Amok MS. PRICE: Absolutely. CHAIRWOMAN HILLER: And I think the Board recognizes that staff, the County Attorney's Office and the Clerk's Office have all worked very hard and in a very cooperative spirit to try to -- MR. BROCK: Don't throw Jeff in here. CHAIRWOMAN HILLER: I'm throwing him in. All r' forget Jeff, let's get going. MS. PRICE: This was all us. CHAIRWOMAN HILLER: Let's get going. MR. OCHS: Commissioner,just one quic +'`_a W at's reflected in our analysis is based on the sub -'.,• `• your backup of the proposed ordinance by the Clerk's Of' - -1a , at we're reacting to. CHAIRWOMAN HILLER: Co, 4 we egin with what you believe you now agree to and just .44k that and take that off the table so we can focus on the ,, 1 " MS. PRICE: I'll just to ,e .ne a a time. CHAIRWOMAN HI = i ' • I right, go ahead. MS. PRICE: Just don't think I could remember them all out of order. ; r, `4 CHAIRWO ER: Okay, go ahead. MS. P' .,!. Th irst area, the Clerk's Office wanted us to say that only th- ➢oahas the authority to enter into any contracts. We prefer to ; ° t`' ;language from the statutes that says that the Com ' •'' adopts ordinances in the exercise of its powers. This i et mg I'm going to fall on my sword over except to say that them arc ntracts that oftentimes need to be signed in between Board meetihe that failure of staff to be able to sign some of these will cause delays. I'm talking about things like obtaining truck cans through Waste Management, times where we've approved the purchase of software but then need to sign the user agreement. There's probably about 200 different instances in which staff has signed those Page 76 Packet Page-2803- 12/10/2013 17.J. November 12, 2013 contracts under the set of parameters given to us in the purchasing policy. It would be my preference that so long as we are operating within a very I'll call it a box, and I guess here's where the fundamental difference between the Clerk's interpretation of delegation and staffs interpretation lies. And that is clearly th atutes say that the Board can't delegate its authority. However, I 1)::' z , hat if you tell me to operate within the black lines of a box, •e _ ,a,,,-°•t accepting delegated authority, I'm not using independe mF ' 2 , ,-tion, I am simply using your interpretation and staying wi r r " .fines. If I'm going to cross outside the lines, I need to co 1 , to you for approval. And that to me is what we've been.. en we've made ,z . purchases under $50,000 all this time T ,; f it is under 50,000, over 3,000, we get three quotes, wr• ,• ' e lRowest quote, unless there's any good reason for qu.. 'r p x•oses, and then we look for quality. , I would like to point outto • V,, P ' y ut this chart up here, the whole pie is all the County , h. spe ' `a ing. The piece that we're speaking about right now '. r - j- le piece of the pie. CHAIRWOMAN Can we get that on the overhead so everyone in the a:44! ti . e , ee that, please. MR. OCHS: -a ha4 = to get the camera from the control room to pan behind , e ,'Y, MS. P E: ° s o I'm really addressing that little red piece of the big pie an o " to efficiently operate within there. And again, it is my be ' "Mo.,:.a • ong as we stay within the thick black lines of your 4 ., at we're not exercising discretion, we are operating g p g a•' 'ni alively following your guidelines. MISSIONER FIALA: Can you tell me what it says for that little piece of the pie? I can't read it. MS. PRICE: It's $17.5 million and it's about 12 percent -- MR. OCHS: Eight percent. MS. PRICE: I'm sorry, eight percent. I can't read it either. Page 77 Packet Page-2804- 12/10/2013 17.J. November 12, 2013 COMMISSIONER FIALA: You can't read it either. COMMISSIONER COYLE: The audience -- MS. PRICE: There you have it. COMMISSIONER COYLE: Well, don't you have a co of that in the presentation? MS. PRICE: I do. 4 % COMMISSIONER COYLE: Why don't you show • t . ,. MR. OCHS: There it is. MS. PRICE: There it is right there. Eight perc I apologize it was 12, almost 13,000 individual tr. ► ... . ns. And that's where the cost comes in If those independe , '' ions, even to the degree that we can consolidate a few • w ill couldn't bring it down to too much less than maybe 7J, I 0 ansactions. Those are executive summaries that have to e you, t ey're going to have to be reviewed two or three t' -* 44 4 ore they get there, work their way through the Sire a ; • + 4 pu! of your packet to include all the copies of the • that 'ou can see what you're voting on COMMISSIONS: '` R,: So what you actually said was there were 12,692 tran .c 7 1 n *l`lved with this eight percent and that we're talking about:', n• e other part that says contract, there are 5,412 trans cti.1.4. speeding $201 million, which is 92 percent of our spending. MS. 6 - : That's correct. C*C . 4 6 ',A.r°ONER FIALA: Okay, I just wanted to -- because I c -- " av rthe audience can see this either. Thank you \M PRICE: Moving back to the areas where we are -- have our majors ferences. And here's item number one, small purchases. Our current purchasing ordinance and the ordinance that we support would allow staff with one quote to spend under $3,000. The cost of obtaining those quotes, the time involved doesn't equal taking those items individually to the Board. While we do a lot of our purchasing Page 78 Packet Page-2805- 12/10/2013 17.J. November 12, 2013 through contracts and bids, through RFPs, there are a wide variety of times when we just need to be able to do something. And the thought crossed my mind earlier today when I was having a problem with my iPad that we buy a service pack when we buy the iPads, but there's a $50 deductible, if you will, if we need to make a repair on it. If I needed a repair under a new ordinance, I would hay ii down, find out is it reparable? Yes. Do I have to spend i.e` , es, I do. Come back, write an executive summary, bring i -,iii. :::oard. As soon as you guys approved it then we could tak- - 'I-Z w down to the Apple store so they could send it out to be W ; •n. That's just one small example of times where things com.. • ,, in order to operate quickly it behooves us to be able V . .i, . ,bin the black box that I referred to where we have the ab , :" , •' 7 dmmister your policy. From three to $50,000 we ha =- ' . s gone and had three quotes. Purchasing reviews ,m o °'', 4.,-7, • • es and we cut a purchase order to the lowest quote. We have opposed -- I z.I , ' r d that the Clerk and their staff have some questions . 1 . ' ,`1 s about no quotes. There are times when we can't ge i it If • b •te. What we've proposed to increase accountability is th w e there's a no quote that would have to go ty y q g to the pure :si. ; dire .•r to have it reviewed to ensure that there is in fact no othe ,: '-at could quote. So the new policy would say if you can't ',- ..ti a.-a quotes from the first three you ask, keep on going until y•.¢ = ' t ee solid quotes. And if you truly can't find i '$. :,then you're going to have to have Joanne look at it and say ye ,in ",;.c` there is no other service provider out there who can or will -- so ``,- mes they aren't interested in proposing on something that's, you know, very low in dollars, do that work. That would give I think a little bit of extra control that the finance is looking for and we've got no objections to doing that. But in order to take each of those items to the Board, again, Page 79 Packet Page-2806- 12/10/2013 17.J. November 12, 2013 you're talking about considerable amount of time, of energy, of paper, of approvals. You were talking earlier about another item where you said gee, it seemed like it took an awful lot of money to put this item the agenda. We would be talking about doing that at least 10,000 ore times a year We've always had the ability to waive the quotes w y ty - . .� •le source or a single provider under $50,000. That was s•,; : ' that was removed in the Clerk's proposed -- or I say thearoposed ordinance, and he is correct, he did not propose . - • ance. We showed him one and he and his staff looked • , •,.1-,,,• ade some revisions. So I want to fix those words, 1),-,„,1 u -„ ii er squirming over there, and she's right to do so. This `”° -1 ..:•roposed change to our proposed ordinance. But we still -1 that there are a number of times where it would just be aimi . I% -ly effective to allow ill purchasing staff to make tho c%,. r. • ° an taking it to the Board. There's about 200 of those e.l,~ Under the cooperativ r •, le .ing, I believe that we may have come to an agreement • - , ', I just -- I just need to verify. We talked about the s°` . 'a 1 • ual basis, and there's an accompanyin• item er- e're asking to do this, would authorize staff to use,po• ;''ratio ►purchasing agreements, state purchasing agreements t" z ,4.bility to piggyback with other agencies that have done corn A a 't ,c procurements. And we think that that might be a way to l4 n`'these endeavors. 41',--- , ire we disagreed is that we felt that that provided the un• ly I g approval of the Board, and finance department wanted us to bri _ each purchase under those agreements back to you individually. And to my way of thinking, that sort of takes out the benefit of having the underlying contract. Now, we go out on an -- every three years, every four years for an office supplies contract. And essentially it says for all office Page 80 Packet Page-2807- 12/10/2013 17.J. November 12, 2013 supplies that we need, we're going to use this contract and departments buy whatever office supplies they need off of those contracts throughout the year without having to come back and ask each time and get an approval for each purchase order. I would say th use of these cooperative purchasing agreements is basically the samay. You know, we've got a budget that's been approved by the B,,w` Once these contracts are in place, that would help us at l . s ,,7M towards not having to bring all these executive summ. f ` i to the Board, places additional work on our staff behind t k"' 74,, to validate all of those contract amounts, but at lea :�: , �uldn't be coming to the Board each time. That was the f;= =Y•' F e I think that we had disagreement on how we would u st • ° e . MR. BROCK: Can I address a -- '1 MS. PRICE: Yes, please. ,;-'A MR. BROCK: -- couple oft - i u-,,,? P �. Let's start out with her A. , It., •4' t our complaint. I'm not suggesting to you, them or . • ' - - the someone bring every purchase to the Board of '' �, i*e •mmissioners. That's not what the law requires and it's for .. ical purposes nonsensical. What I'm suggesting to yo s ' .'4 o lan and you make a determination of the things thatyou go • to need and you enter into a master contract th ermpa �ses those. And you issue P.O.'s off of those based upon Nat the Board has approved. Ther e o requirements for the Board to make: One is you must • :-1 etermination that the expenditure has a public p ;4,-,- •kay That's one of the required determinations that you as the"disc -t onary body in this county. o, you then must make a determination of the expenditure. You can do that with a master contract. You do it with office supplies every day. You can do it with all sorts of different broad categories of contract. All you have to do then is issue a P.O. off of that contract and you have -- assuming you have made the determination that it Page 81 t. Packet Page-2808- 12/10/2013 17.J. November 12, 2013 Auk serves a public purpose, which you can do through your budget, you can do through approval of project, you can do through any process you want to use as long as you give me the guidance. I look to you for the guidance. I have to have direction from you as to how to udit, what is it that I am auditing to, what is it I'm looking to. ,. The first determination that the courts have determined rk must make is what is it the Board has approved. That's PP , ��. determination. If I can't determine what it is you've ap P.F '- obviously then I've got a problem in making the pa ' ' ; With regard to the iPad, very simple. You . T ' 7 e to the Mac store and you enter into a collective agreeme a ''' e. Board so chooses, you get their catalog and say thi £� 5, can pay. How you make that determination is none of m cc l' ' • ■ as long as I can look to what you're directing me to d 'm l`3•king or direction from you as the discretionary body. - Then she made the obs ,v. „ii i 1 , y u know, if you put it in a box and they do it, that ough _-c,. .'-�:s" •d e ough. And that is absolutely correct, as Ions atox excludes all discretion. For example, you say :o b d •, i , Y, Z and you bid it And you bring back X, Y, Z, ba i,,, ;• e't r-' owest bid, lowest price. Nothing else, lowest price. You e ni s accomplished something that's eliminated .11 . " retie . When you put into it reasonableness of the bid then yo veserted an element of discretion. The law says, and I will o ou momentarily, you're the only discretionary body here. !;,;,° ? have to look to the law in making the determination of ,, ` - can pay. That's totally different from what you do. I don't ha` - a aloa lem working with them and refining the process to make it easel . •erational. But that's not what they want. They want absolute and total discretionary autonomy. That I cannot pay. One more was the state contracts or these contracts that you go out there on -- the state has out there. I mean, I'm not sure who she's been talking to on my staff. She certainly hasn't been talking to me Page 82 Packet Page-2809- 12/10/2013 17.J. November 12, 2013 that would suggest that once you approve the contract, the state contract or any other agency contract that has purchasing authority, we want you to bring it back to the Board. I mean, as long as the Board has through some process made the determination tha what they're expending it for is for a public purpose, you don't have bring it back for the Board. And this is the reason why I pulled thi y. . Let's think about that The state contract, for exam• 1 ,t going to show you some detail later on, that state contr t there on the Internet for everybody in the world to see. I ` �'t beat that 90 plus percent of the proposals that are out there 4 " ou send out, you must be sending them to idiots. Because 'r, li. w what the contract price is under the state. So all the ..e s o is just undercut it a little and they're going to get "v . • •sal -- get the bid. So, you know -- and I'm going to sho , ., ou . comparative here in a little bit with regard to that. All I'm trying to say to u ►'1 's " s ;,i ners, is you cannot delegate discretion. If you h. d t '_'parameters so that all dimk discretion has been elimin: AM, o it I'm happy. As long as you've told me what I'm to au• .3. k0 r Go ahead. % ' MR. OCHS: • • to presume that the current policy doesn't do that? MR. B `° C You're absolutely correct, it does not. Absolutely gib"... not I'll s �• u an example of where it did occur. t To Okay. 4g ,. • • E: Then I would say that this is an area that we don't ha', co a Mete approval of. We're in agreement. " 5'`. OCHS: Well said. Exactly. CHAIRWOMAN HILLER: As they say, you agree to disagree. MS. PRICE: We agree to disagree. The next area deals with contract administration, and what we're asking for here, and I believe that we do have agreement here, and that Page 83 Packet Page-2810- 12/10/2013 17.J. November 12, 2013 Mk is to go back to the way that we have been handling change orders so ` `" that we -- change orders under 10 percent we handle administratively and bring back to you in a report, as opposed to having to stop work and wait until we can bring it to the Board. I believe that we ll agreed that within those parameters, providing that you were ' ling to accept the fact that there's some risk involved, we will ha v%,1, dy tioq done the work and you'd be approving it after the fact. We- operating this way for at least the 10 years that I've be= �, J he county, and I don't believe that we've had any that z- ,��� 't resolve, you know, favorably for everybody. Even the f- . .''^'p -mss that one has been pulled for some more questions, we've : ;;44;,-,, ND been able to answer those questions so we have not ha orders that we issued administratively under these rules t 'Mr , . p l were not able to approve. MR. BROCK: My only obje .i h this was you've got to put it in the bid that you can spe to • t -'''''°Ilercent. And it has to be included in the contract. If R + `°. ` se to things, I don't have a Y , ,�. g problem. You've already ,` i 4, it. .., MS. PRICE: It's i . e. So if that's t t that we've got an agreement to work reverting back to th. . ay eve been handling contract changes. CHA ILLER: The provision -- where does it provide wh. .-Jwi It just said? Because in C it doesn't provide for that. h RI ti - . It's actually in the contracts. When we put out the t %.- C r,,. RWOMAN HILLER: But as a matter of this purchasing ordin r' 'e, it should provide that these contract changes will -- in other words, any of the changes that are approved will be changes that fall within the scope identified in the original contract. We're not engaging in contract amendments, we're doing what is within the scope of the contract and we're willing to spend up to 10 percent more Page 84 w�¢ Packet Page -2811- 12/10/2013 17.J. November 12, 2013 on that scope. We're not changing the scope of the contract and changing the price. Because that is a material difference. MR. BROCK: And that was my only objection to this was it's not in the contract -- I mean, it's not in the policy. It has to b a send -- assuming you're going out with a bid, it has to be included i e bid so that everybody's playing on a level playing field. ate�. z. CHAIRWOMAN HILLER: It has to be. O therwise . MR. BROCK: And two, it must be included in th; • 4 ct language that you approve. I'm looking to you for u • ' ion. Y pp That's all I'm doing, I'm looking for you. ,. CHAIRWOMAN HILLER: I'm not rea iy wording to provide for that. lib, , MR. BROCK: I didn't either. MS. PRICE: The last sentence s al ,f4 aterial changes in scope of agreements must be approved b ,.... liii 'and in advance. CHAIRWOMAN HIL . ' '_e. ' "R: that's not the issue. We're not talking about material ch• '-_„: the c ange has to be within -- in other words, the dollar amp, F,.. ;`: out has to be for work that falls within the scope of whav • • MS. PRICE. ► •.• rrw that's not going to be possible, Commissioners. °•. ` avAInforeseen conditions that come up from time to time. CHAI O N HILLER: That's still within the scope of what was bid. ; - •t `er words, the specific project as to A, B, C, you know, if doi I 'As that you dig a deeper hole and that's going to • 4 _ - - gour`cost by two percent, that's still within -- *RICE: Then we're in agreement. z° `AIRWOMAN HILLER: -- the scope of the contract. The issue is, is where you now add, you know, services or, you know, change the design or something like that that the Board did not agree to and you increase the price of the project for this new scope where you've got a problem. Page 85 Packet Page-2812- 12/10/2013 17.J. November 12, 2013 Aft MS. PRICE: And I have no disagreement with what you're 4,. saying. CHAIRWOMAN HILLER: I see a foot making its way out. Did you want to say something? MS. PRICE: It's a matter of how you define scope. CHAIRWOMAN HILLER: Well, let's define it Beca \--. MS. PRICE: If we're building a road and everythin' i , . e ' o build the road is part of scope, even if we find changes ••: -hums or what have you, then I don't think there's a proble m '= building a road, we're building a road. We're not going is ;i.; swimming pool. You know, I mean a road -- CHAIRWOMAN HILLER: We're '. •'` ,• e• MS. PRICE: I'm not sure that -- MR. OCHS: Don't go there. .m MS. PRICE: Let's just don't os a _, CHAIRWOMAN HIL -4141 ou want to say something? Because this is rai, -:.;.• r ar= . . The wording as prese L - c '` -, I think you are in agreement. I just don't think the wor•' ` , • : y expresses your mutual understanding. e k..., MR. BROCK?' • ick says anything other than what we discussed i ith , I' going to go over there and start wailing on him. 4 MR. wy LANGUIDA: For the record, Nick Casalanguida. VC-0 1tli;. tai -- Dwight and Crystal and I went over a Gantt chart .4-g- 'Nike 4 about changes and work orders. It's that narrow laiTggag *hen you say scope. A road project is 24 to 36 months. So when approve the contract, they begin work, they dig up a hole. If your interpretation is we find check valve or drainage system when we dig it up to be a little different than the line item that's within the scope of the contract but the broader scope is to repair or replace the drainage system and we can tell a vendor no, don't put in pipe A, B, C, Page 86 Packet Page-2813- 1 2/1 0/201 3 17.J. November 12, 2013 put in pipe C, D, E, because it's a better product or there's an issue with pipe B, C, E, and that's not a line item within the contract, I just -- as long as we can understand that the broader scope we're complying with that. But I don't want to get hung up with a particular line item. ' ;. COMMISSIONER HENNING: All you have to do is • ' e contract unforeseen circumstances, and have a dollar val I 71. at's c:4,1 , -- the Board approves that cont ract. MR. CASALANGUIDA: That's right. `"' MR. BROCK: Absolutely. And that's all I ! •. COMMISSIONER HENNING: So let's , -. ` ► imple stupid and move on to the next item. CHAIRWOMAN HILLER: It's calle • ,, gency. But it needs to be clearly expressed because, $at i - I of provided in here. Contingencies within the sametscoc - permissible up to 10 percent. And then ratified after the fay . a 0 ,� : a i ication has to occur before the Clerk pays, and th := t - ether r sue. MR. BROCK: Let a ut one additional thing here that may be getting missed.,„ I'm going to ,• • , • approval at the point in time that that bill comes across m _a es'`-'or payment. When you approve it is not germane t• < he Z.ue. think Mr. Klatzkow will tell you there's a case in Escambi.`' ' •u ` .. that said you can retroactively approve things, so long as it :,'r -nted formally to the Board of County Commissioners and th- •r• ... • t ounty Commissioners is made fully aware of the • regard to it. So, you know, any of those little things can be de ,wIth n that particular manner. But all you have to do is insert that Iriguage. I then have the direction of what I'm to audit to. And that's all I'm asking for. CHAIRWOMAN HILLER: So can the County Attorney just afterwards take a minute to clarify the wording to reflect the discussion that both parties agreed to? Page 87 Packet Page -2814- 12/10/2013 17.J. November 12, 2013 MS. PRICE: I'm sure that we can add something in there. And for the record, that specific language is in the bid documents and in the contract as well. CHAIRWOMAN HILLER: Let's get it in here. MR. OCHS: Well, are we going to try to amend two dod ents into one on the fly here today? Is that the goal? CHAIRWOMAN HILLER: No. , COMMISSIONER HENNING: Not on the fly. T r". o come back. ‘4,4 CHAIRWOMAN HILLER: The particular ' - I mean, if you can't resolve it and bring it back toda , y.:; 40 ing it back in December with respect to where you hay.. r:.r nd bring back the wording just specifically on that issue 3 N,. MR. OCHS: Thank you. ^,, CHAIRWOMAN HILLER:y ' just want the County f , Attorney to clarify. ,0„„,,,,, So this issue we do hav y Netzite nt MS. PRICE: Yes, yep; ' _-ve we do. CHAIRWOMAN - 4, : Great. MS. PRICE �n 't r proval under 50,000, we clearly do not have any kind of agme ,:. whatsoever. I guess we're just going to talk about tat ,E 11 her as we move out Under the emergencies, I think we've got amen that we would add the language exigent circumsta ,that it doesn't have to rise to the level of a valid public emer g", ee to act in between Board meetings and then bring so --thi g to the Board for approval. BROCK: And Commissioners, I don't care who approves it. I mean, the only reason that I'm -- I threw that language in there, the chairman or the vice-chairman should be consulted at the point in time when that's done. You know, it says it has to be brought back within the next Board -- next available Board meeting for consideration by Page 88 Packet Page-2815- 12/10/2013 17.J. November 12, 2013 the Board. All I'm suggesting is you do this knowing the risk you are taking, because if it does not get approved, I suspect that vendor may be looking to you personally for the problems that has been created by you not approving it. Okay? All I'm trying to do is say, you know, go into this understanding and accepting the issues that are there. MS. PRICE: For that reason, obviously we would exp this would be a procedure that would be used sparingly and p etStr hen absolutely necessary. My concern is that if-- if the p k1 ordinance is approved in such a manner that the sta :'a : Ilt, ability to make purchases, off contract purchases under 5 1 _ at this process might become the rule and not the exception. -- e just so many instances where while we would love to b • , s',. ` {a out everything that we do, it is absolutely not feasible to • v. . '4 Additionally, there are a number,, , pu ases 'hat we make only one time in a year If we attemmte• ;:.• j. ..ut a formal solicitation for that one time, we wouldn't g as . • •. J it itting bids for it It's small dollars and it's -- it's a ,:p = ffa `''. When people -- when vendors put forth a propos,f •-:$.a _a'• offer, it takes time and money for them to do so. And the . e`.:. y won't do something like that for a four or $500 or $ .91i0 1 c e. And so I'm concerned that if this becomes a routine , e which we get work accomplished in the county, it i.', •olt to b very cumbersome on the County Manager to make himse' .-:. vaikble for all of those approvals and for us to make sure that .,-°, i e he's given approval that we've got the docu . .'oiathat we need to bring it back to you so it doesn't rile fal 'through the cracks. As I say, for your standard unfd, ese situation that comes up a couple of times a year, I think this :,-,0„i excellent process that would serve us well and it would serve you well. But as a standard way of operating in between Board meetings, I think it's very cumbersome upon everybody involved and can -- will become very difficult for us to operate under. CHAIRWOMAN HILLER: So where are we on emergencies? Page 89 Packet Page-2816- 12/10/2013 17.J. November 12, 2013 oismtk Do we agree or disagree? MS. PRICE: To the extent that this language was written, I think the Clerk has no objection to this little bit of rewrite. We've made it the County Manager who would do the approval, we added t e words ds exigent circumstance as well as valid public emergency. And t n'f believe that we've got any disagreements on how to use that. really just how often this is going to be used, based on so' 4 • t • e other factors that we're going to have to come to some ate , y •n on. CHAIRWOMAN HILLER: Well, I think firs . ' . , igent circumstances should be defined. And then it doe, •me the burden of the County Manager to approve it and bri :< :oard for ratification before it goes to the Clerk for )f 1. -. And again, one thing that's missing frt L;-A 4, '`$.olicy is that, you know, the ratification has to occur be w ;e it °&'es to e Clerk for payment. And as long as the co . . - .ger has the discretion, I mean, we will defer to the C. nik 4 .4� . :e °for, you know, properly administering the decision to urc' .se which falls under an exigent circumstance. Bu " d 4;,ne it Can that be defined? MR. KLATZKOW• ,1,11. -- -- t? You could use the dictionary definition. I mea S CHAIRWO 1 tER: Come up with -- so there has to be some corn n'.n ,' ders ding as to, you know, what is considered extreme to.) :'ifyggering this CO t„ .A q=:� ONER FIALA: Like for instance one of the pipes that bl- .',- "''#•_4 d-rground in the water department, that was -- L,.`4, IR OMAN HILLER: Like for example -- right, like ex''_a;nt Y. • id be something that compromises public health and safe ,.A- MR. BROCK: That's an emergency under the statute. COMMISSIONER FIALA: I was going to say -- CHAIRWOMAN HILLER: Right. MR. BROCK: All of the purchasing policy statutes have the Page 90 Aimowk Packet Page-2817- 12/10/2013 17.J. November 12, 2013 emergency. The only thing that is important in this to me is that it gets approved by the Board when the bill comes to me. CHAIRWOMAN HILLER: So again, so let's just add, ou know, the statutory definition of emergency, and then make s that we add that it comes to the Board for ratification prior to goi e Clerk for payment. And then that resolves that issue, do- n because it gives the County Manager the discretion to `y.• Y p at issue as it arises and then the Board ratifies your ju• 5 MR. OCHS: Yes, ma'am. As long as your � at it's -- COMMISSIONER NANCE: Doesn't ,: ' . • ommonly do this with the County Manager when the • 't °_;•batical over the summer on numerous decisions, not pa ' . . re ated to spending? MR. OCHS: Yes, sir. Your h ' ,•olicy says in effect that if there's an emergency purch. - ` . . - 7+ have the authority to do that and bring it back for Bo. , . a -.tio at the next available meeting. CHAIRWOMAN 1 ; ; ', : So it basically -- so there should be no problem, ther-7" ., `. : An disagreement on this issue. We're just, you know, making '.a"le. ° s to -- MS. P `- Correct. CHAI O N HILLER: -- the timing and the definition of an emergencw.. Iii _ ` I don't know about -- if the payment issue has e . • • ornot. \M'' PRICE: Well, we were certainly aware that by bringing it to the 1' - vailable Board meeting we'd be bringing it as soon as we possibly can. More often than not it would be well within time to make the payment. The only time that that would be an issue would be during the Board's recess which we've managed to deal with for the last umpty ump years, so I'm sure we can continue with that. Page 91 Packet Page-2818- 12/10/2013 17.J. November 12, 2013 Avek Like I say, my only issue with this item is that if every purchase under 50,000 becomes exigent -- CHAIRWOMAN HILLER: But that's not possible, because there's a clear definition of what exigent is. And it's -- *‘. MR. BROCK: Emergency. I'm not aware of anything o r than a dictionary definition of exigent. That was -- state wanted t , thrown in there, and it certainly doesn't bother me. MS. PRICE: The next area, actually the Clerk s . e agree that this does not belong in the purchasing ordinanc ` '11 bsolutely nothing to do with purchasing and it's our reco tion that we take it out of here and that I work with the C• •rney to write a resolution that deals specifically with the . v • `=o •tion of surplus goods. MR. BROCK: The only reason -. MS. PRICE: I have no idea - .t kound up in here to begin with MR. BROCK: The only ,`ry : ev commented on this particular provision was i Milkr;hasing policy currently showed up there and when I starte• ..• 1 at it I saw a trend that there seemed to be certain not-fo # • g ere getting a large amount of the what do you call it, su o•`�';h and I thought the a g g e Board should at least take a look t This as nothing to do with me. CHAP: 0 £ N HILLER: So remove this item from the purchasin A •;. 'ance and have a separate ordinance regarding the sale of su . o ,^ �► ' 1- E: Correct. RWOMAN HILLER: Okay. So let's go ahead -- ISSIONER FIALA: Let me ask a question on that. CHAIRWOMAN HILLER: Okay go ahead. COMMISSIONER FIALA: If you don't mind. CHAIRWOMAN HILLER: No, go ahead. COMMISSIONER FIALA: For something simple, like for Page 92 Packet Page-2819- 12/10/2013 17.J. November 12, 2013 instance we have a surplus of-- MR. BROCK: Computer equipment. COMMISSIONER FIALA: No, I don't want to go that big, I just want to talk about library -- MR. BROCK: But there's just a ton of computer equipm ,t that goes to what seemingly is one particular person or entity get t 4. all of them. That's what was puzzling to us. COMMISSIONER FIALA: Is that a not-for-prof _. . who then distributes it to families in need or something 1. bn,., MR. BROCK: I did not go behind that tra . All I did was I saw on the list -- what was the name of it, CI.� _;-; COMMISSIONER HENNING: Lo. ' . <�t ';,A s -- MR. BROCK: Inglesia. �M1R „ 4r J MR. OCHS: That has nothing t• ^o w 'y -- COMMISSIONER HENNIN _. Ali should be auctioned off. COMMISSIONER FIN_ "'_� ' , .■f be there are times when it would be -- can we ever take "- • 1 ucti.n on things? MR. BROCK: We d f '" ma . es, Commissioner. MS. PRICE: We •.e ' • axes. COMMISSI ` "1'j 'it I ^ '` A: Oh, yeah, that's right. Sorry about that. °;z But b ere ``°x.rganizations that cannot obtain these things in any other w-t -an e find that there's no use for them. MR. , to, K: And that has been done. My only -- C, ..a TONER FIALA: You don't have a problem with that, M = . BROCK: -- point for pointing this out was to bring to your atten' t ', you go look at -- and we prepared the surplus list and who it goes to. If you go and look at it, Inglesia something seems to be getting almost all of the computer equipment. Now, it's not universal, but it just seems to be a lot more than anybody else. And we touched on does the public know that they are entitled to come get this if you Page 93 Packet Page-2820- 12/10/2013 17.J. November 12, 2013 were a not-for-profit? What process do you use to make them aware of it? And, you know, and that's your issue, not mine. Leave me out of it. MS. PRICE: This is all covered by statute, so we can bang you an ordinance that would address it specifically. And then I tht we can address all of those issues. rti. CHAIRWOMAN HILLER: I want to see this -- MR. BROCK: There's no suggestion on my part 're not totally complying with statute price. CHAIRWOMAN HILLER: Great. ,41(t) M A N.4 S. PRICE: No, no, I understand that CHAIRWOMAN HILLER: So just -1- .n a. ' k. . --ping notes because I have to summarize all of this at t :°R • we know what we're doing -- MS. PRICE: Right, so we -- 14.. CHAIRWOMAN HIL ' - . .• a , ; t we're not doing. MS. PRICE: We woul• ` �` we ' e it out. "` CHAIRWOMAN HI +- . i n surplus we're going to pull this f out of this ordinance . A 'r oing to address it by a separate ordinance. And y 4: - a , , .this issue of this -- MS. PRICE: Ws. C - r i*I-IILLER: -- church -- MS. P'` J E: es. CH A OMAN HILLER: -- who got all this equipment -- :.° , • Yes. z. AIR' OMAN HILLER: -- and tell us how they were sel"cte• .s"an example. So that could be brought back for example at the limber meeting as an agenda item. MS. PRICE: Absolutely. CHAIRWOMAN HILLER: Okay, so that takes care of that. So that's for the December meeting. Next? Page 94 Packet Page-2821- 12/10/2013 17.J. November 12, 2013 MS. PRICE: Next is our purchasing card program. If we are to use current contracts and get approval for the use of the P card in advance, essentially we have shut down the purchasing card program. It can't function in that manner. We had specifically designed 3 it not to use our contracts to be certain that out in the field the staff mebers who are making a purchase against a contract item would kn at those contract terms are If we issue contracts, we use p c °•ers to buy off of those contracts. The P cards were for sm `'` 'r+ases that were off contract. We use them for Internet pu F ` a we use them for travel. They are a wide number of uses . .- ave approximately 9,000 small transactions each _,,-- 'Z a e purchasing cards. In order to get approval in advanc; A, , =f k`: o hese, there -- CHAIRWOMAN HILLER: Can I as' % fe, question? Of the 12,000 -- A it COMMISSIONER HENNIN I want to ask questions too. N.,; CHAIRWOMAN HILL " Iv, ahead, go ahead. I was just going to ask on that 1 1. 1 v sus the 9,000. MS. PRICE: 9,00! e �_�-,:h .-e 12,000 are -- COMMISSI 4 t 's `4 ING: Are you saying you're buying purchases with the 4"�'`ar• `'`-gat we have a contract, existing contract P g for? MS. P ` #* E: 1o, no, we do not CO ;' 41 , ONER HENNING: Do not, okay. Because it was very c• _ ,:r - at you're -- ` 4 - • y`vCE: I apologize. I've been up here for a long time, I think.,I'll probably confused. N COMMISSIONER HENNING: And it's travel that you're doing and we don't have to approve that? MS. PRICE: Travel is one of the uses for the P cards. There's a number of others, but not for contract purchases. Page 95 Packet Page-2822- 12/10/2013 17.J. November 12, 2013 COMMISSIONER FIALA: Okay, let me ask about that. Because today I'm leaving after this meeting in a company car, along with another employee, to drive up to the Florida Association of Counties conference as representing Collier County at that c• ference. I have no idea how much gas you've put into this thing, and o =.•urse when you get up there how much gas do you need to get bac :41k,," w, I don't keep a P card. I don't really have one But they to v 5 s 1,-:,'', a when I travel up there. Is there some -- MS. PRICE: That's actually a gas card that w L tally approved by the Board for the use of purchase o !.' n.. 'ne products. So you're fine with that That's really not p �-7K we're talking about here. =: COMMISSIONER FIALA: Okay. A 4ike when we get to the hotel, you have to present your card ten em'`m, d then, you know -- now, if you have any extra purcha ,.. •urse you present your own, but I never have any extra p I 1j t there to do my thing and leave. So is there a problem f., 1 E© :',-? sktow MS. PRICE: If we h. 5 • • :t pre-approval for all of our P card uses, then my answer , Italie to be yes. COMMISSI,A 1 I ` A: So then does that mean that I can't go today or -- MS. PRI No,' If course not. COM r, SI ER FIALA: -- I just don't understand. MS. .`.ki Today you can go. You've got your -- Cr, 4 'wt*TONER HENNING: As long as you have someone 't,. you'll be -- M.M PRICE: -- policy and practice. MISSIONER FIALA: Debbie White is taking me. MR. BROCK: There's no one suggesting that you can't use the credit card to buy your gas. COMMISSIONER FIALA: Well, I don't know because we were just talking about it. Page 96 Packet Page-2823- 12/10/2013 17.J. November 12, 2013 MR. BROCK: That is specifically provided for by statute. I don't have a -- no, I take that back. I have a credit card in my organization that is issued in my name as the Clerk of the Circuit Court. I have one credit card. I don't keep it. It is held by purchasing director, and she gives it out as the need arises an e use it for those types of purchases such as travel, making reserv. travel. Those are all defined by statute, so no, you don't -- ,, COMMISSIONER FIALA: Okay, I just wanted sure that I'm still going today. Okay. ,S-14AZI And I do have a big question, but I'll wait. - k another question? CHAIRWOMAN HILLER: Relate•°y , �,� Because we want to stay focused. COMMISSIONER FIALA: No >._late, to purchasing card,just about purchasing in general. CHAIRWOMAN HIL ,,ait for the general question after -- COMMISSIONER F = .► *_urew CHAIRWOMAN - -- because we want to go through and eliminate, yo.-74 everyone agrees to and what they don't agree to. ` Can I , kz Y uest` n2 I mean, the statement you made, Len, is of concern to ry" A Be fuse where we talk about the discretionary -- the delegation • cretionary spending authority and you highlighted that it 1atetsc t at piece of the pie worth about, what did you say, 18 a 'tlHon thereabouts, and you said there were 12,000 transactions, nevey ' e went wow, 12,000 transactions. Now you're saying of ..: Y Y g that 00 transactions 9,000 of those transactions, approximately -- MS. PRICE: Approximately 9,000 -- CHAIRWOMAN HILLER: Approximately. MS. PRICE: And that comes to approximately two million of that. Page 97 Packet Page-2824- 12/10/2013 17.J. November 12, 2013 CHAIRWOMAN HILLER: Okay. So $2 million is 9,000 transactions on P cards. MS. PRICE: Correct. CHAIRWOMAN HILLER: And then -- so 3,000 trans tions -- or 3,000 transactions is the balance of-- is that 18 million? F much is that? ilk MS. PRICE: 17.5. CHAIRWOMAN HILLER: So let's say 18 milli• tt. z S p6 F +asically 16 million is 3,000 transactions MS. PRICE: Approximately, yes. tli CHAIRWOMAN HILLER: That char_ a r .cussion about the discretionary spending materially. Bet, s �, . obvious is that, you know, if we look at the -- at least the %, • side where you were talking about executive summar.- . . I ,..ou change how you give out P cards and you, you know st.i . • ing the way you handle these P card transactions, yo0. Y w - , ple, these blanket contracts like, you know, co ' • , a s pplier, you know, like an Office Depot or a Home ) - a or'w oever, you're going to eliminate a lot of these transactio, It •11 said would take a lot of time to get h, approval for. r' MS. PRICE: . er. ` speaking, wi h t the exception of I think hardware, ° phi f any others. Those transactions are unique transactions -., a :'de variety of different things. Hardware we had actually c., ; 0,the Board and gotten approval to use retail hardware outlets N , ja 9.4 e last time that we tried to get a hardware contract y— -.- ,e major retailers chose to submit proposals. So some of that wo.= d . ardware. . -`side of that, these are unique, different types of transactions that there may or may not be a contract. CHAIRWOMAN HILLER: But when we reviewed these transactions together, it seemed that there weren't that many unique transactions that a lot of these transactions could have been, you Page 98 Packet Page-2825- 12/10/2013 17.J. November 12, 2013 know, rolled into master contracts and been acquired under these master contracts. So I'm not sure -- I mean, it sounds to me like maybe we have more P card transactions than we actually need to have, and maybe there aren't as many employees that should have P ca I s as have P cards. So maybe evaluating the P card program woul• ' ; a good idea, which would eliminate at least the volume of tran +s as being an issue. tto, On the other hand, with the 3,000 transactions re f; 'F i we'll address those separately, because that just goes to t. . 1 discretionary spending. And that is a significan . ;-: - ler volume than what we understood earlier as like the to + 70. million. So basically 3,000 transactions cover 16 mill . a .. -s to the discretionary spending. And I think we do . ` f oo at that, but later on. : : COMMISSIONER HENNIN . �' . e a question. CHAIRWOMAN HIL ' o = `. -a' COMMISSIONER HE - ; Wh- are we going to take a lunch? Are we going to • ; r,. 'MI_I this item first or are we -- CHAIRWOMAN I ` '": Well, that -- I'd like to ask the Board. Because -'s -1414 It the time and we are now at 12:13. So w. COM I`'`. •NER HENNING: Yeah, I'd like to finish this after lunch, if the er'' •oesn't mind. CH • 'tat:WOMAN HILLER: Is that acceptable? N : That's acceptable to me. I mean, your pleasure. 0, R * OMAN HILLER: What are our time certains beyond the '_- ave a 2:30 time certain, I believe. \• ` . OCHS: You have a 2:30, ma'am. You have your public comment section at 1 :00 and then you have 2:30 time certain, and you have three, four now, advertised public hearing items that begin sometime after 1 :30. CHAIRWOMAN HILLER: So why don't we -- Page 99 Packet Page-2826- 12/10/2013 17.J. November 12, 2013 COMMISSIONER HENNING: Take public comment. CHAIRWOMAN HILLER: -- take public comment, if that's acceptable. Maybe you can start working together on some of the issues that we've already started addressing. , MR. BROCK: I'm going to run through these real quick, you have questions predominantly I'm going to let you ask the ' I q P Y g g Y mean, my presentation is sort of like a sore thumb. , 1 NV CHAIRWOMAN HILLER: I don't think we can . `` W ugh this I don't think that's acceptable. I think Commi 1 enning is correct, I think we're going to have to take a bred, fill ,.,,e public comment and then come back right after •ub ,.-, ,11 ,71 -nt.,t How many -- do we have public speakers signed up k O P. . 1 ment? MR. MILLER: At this point I have ' `'' • ` . ere• public speakers for public comment. CHAIRWOMAN HILLER: •• e f everyone could be back here by 1 :14. Is that acce t e • .' Y p MR. OCHS: Pleasure o m - ' +' d, adam Chair. CHAIRWOMAN HI < en we could have the two public speakers and then =o s to this agenda item which we should have cons • °a • 1` the next time certain, which is at 2:30. MR. BROCK: : 1 bµ=--` ere. CHA 4" ' • ILLER: Thank you very much. MR. S: 'A. es, ma'am. (Lu -' o ecess) M S: Madam Chair, you have a live mic. ,t,446 1MYJ Ite # lik 4' y, . PUBLIC COMMENTS ON GENERAL TOPICS NOT ON THE CURRENT OR FUTURE AGENDA CHAIRWOMAN HILLER: Thank you. Page 100 Packet Page-2827- 12/10/2013 17.J. November 12, 2013 COMMISSIONER HENNING: So, I mean, he's doing it because of perception and not reality. So I commend him for that. So I won't bring that up at the end of the meeting. MR. OCHS: Thank you, sir. CHAIRWOMAN HILLER: Thank you very much for to g the initiative to do what you're supposed to do. MR. OCHS: Yes, ma'am. MR. MILLER: And you have no further public c u . ii. 10, Item #12A — Continued from earlier in the meet' e 'aiihN. AUTHORIZING THE COUNTY ATTO , .. . DVERTISE AND BRING BACK FOR A FUTURE P OH"°`. ,EARING A PURCHASING ORDINANCE - TH r. 0 TY ATTORNEY, COUNTY MANAGER, STAFF • , !! E CLERK ARE TO WORK TOGETHER TO B tm. 6''''-iv •¢.' • A PURCHASING ORDINANCE, A PURCHA`. i s° • N1 AL WITH PROCESSES AND PROCEDURES, A .a , ' 4, • S THE PROCEDURE FOR THE P-CARDS AND ' Na b.. HRESHOLDS AND BRING BACK AT THE r , k . ,. ' 10, 2013, BOARD MEETING — APPROVED MR. Cow, ommissioners that brings you back to 12.A. I believe y•, ;r ed to try to -- C : �' 9` • N HILLER: Yes, back to the Clerk of Courts. 'IF-, 0 S: I think Ms. Price was just finishing up her -- ' C14RWOMAN HILLER: We were on the P card program talkingabout the number of transactions that were out of the -- that total pie that involves the delegated discretionary spending, that 9,000 transactions out of the 12,000 transactions were P card related for about two million. MS. PRICE: If you would indulge me for just a moment, the Page 110 Packet Page-2828- 12/10/2013 17.J. November 12, 2013 purchasing director has some more solid data I think that can help put this into better perspective for you. I'm going to ask her to do that while I queue up the presentation back to where we were. MS. MARKIEWICZ: Joanne Markiewicz, Interim Purasing Director. I do have a few comments I want to make sure are on t s,c9rd.` First of all, I want you to know, in fiscal year 2012 t 'w 2,300 unique suppliers. Approximately 62 percent oft 6k. • b■ ase orders that we issued in fiscal year 12 went to local , -4'' M 600 contracts, or approximately 560 vendors, had pr- ,+r-_ ;7 contracts for construction services, architect and en:.in-,r ask. *_ ; ices, office supplies, booths and a number of other go R • ' - ces used by the county. Use of the county contracts are v':.,•ro and aggressive. Use of other contracts, for example, U.S. L.;• sties, WISKA and the State of Florida, are selectively usa• • `1 e n . And what I mean by sel sed, if we're buying one item, generally those contracts • AZ so that they're guaranteed best pricing. If we're using - - - •uying multiple items, frequently we'll go out for b. i x• �- -, .n't use the State of Florida contract or a U.S. Community cow, ac is what's in the best interest of the county. Those 'P.,� i c acts -- and many of you are business people, those 600 - is took care of 92 percent of the county spent. For busine i,• t e rule of them is 80/20. Oftentimes when we go out x�="l tli 1 out 80 percent of our supplies, at least 80 percent of our • su ie-, ometimes we don't get bids from vendors. Sometimes we find s ' elves with obscure parts, sprinkler supplies, pesticides that we only use in extremely hot conditions or extremely wet conditions. Those sometimes are missed on some of the bids that we do. EMS or animal vaccines that are recently developed, those aren't included in bids and sometimes we use those for off-- or we have Page 111 Atiok Packet Page-2829- 12/10/2013 17.J. November 12, 2013 those off contract purchases as well. And there are times when vendors have not submitted pricing for some of our line item bids; therefore, we need to go off contract. We have used the credit card for contract purchases an. non-contract purchases. We've sparingly used the credit card contract purchases because our colleagues have told us, the of ;.' , Office has told us it's sometimes been hard to reconcile ti' . 1 :-transactions. We've used them sparingly -- we've used , 4 -.ry sparingly, and when we do we assure that those co ' • ,, ;chases are made in accordance with the contract. Now, let tr- ,, -. e just a second CHAIRWOMAN HILLER: Someo ° - 8 • %, their phone off, please. )4,4,, - MEMBER OF THE AUDIENC r k I di 't know it wasn't off. MR. OCHS: Push. la CHAIRWOMAN HIL N.• . ` _►ment, please. Everyone, can you mak; - r p``one is silenced? I mean, just as an afterthought. W:,,, ';. start every meeting with that, you know, please silence y• ..i Sounds like a movie theater. Silence your pho t.. w popcorn on the floor as you're din:these pro �7� _ . Goa . - MS. *`,: ;:;:) WICZ: Purchasing cards. Commissioner Fiala, you brou%k . travel. We often think of purchasing cards being used for tra tt. 1!& r- really is only one portion of why we use purchasing I •,r A i,,slxet me remind the Board, the average size transaction on a purchti g card is $236. We use purchasing cards for subscriptions, for registrations, for classes, for books, for miscellaneous hardware supplies, for minor computer supplies like covers for iPads and iPhones. We do that because it's streamlined, it saves us money, it saves Page 112 Packet Page-2830- 12/10/2013 17.J. November 12, 2013 the taxpayer money. Our goal in these smaller purchases is not to usurp anyone's authority but rather to provide efficient and streamlined services, not only for the county but for the vendors. Our goal for cooperative purchases is not to usurp or to for higher prices or make it easy. It's just to have an available set tools in our tool cabinet if we need to use those. Commissioners, I just want to remind you, there are of checks and balances in place. Have we made mistakes • -,c utely. Will there be mistakes in the future? Probably. Bu & checks and balances. And let me just highlight a couple e aiLitz e. Our operating departments are stren• heA. • fiscal staff. Their operating department directors or s3 •r «1 .ff officers review every transaction. Central purchase ' •- it s every transaction before it goes to a vendor. And last but not least, our Cl-,, . z,f •urts performs pre-audits and post-audits for us. Our al,; . et to usurp anybody's authority. w: One final comment I . , eel` • make on donations. In addition to the Inglesia Church, , : o donated computers that are really scrap metal, Co 1%,} e ' r because we've removed the hard drive and the memory ou • th-` --to to the New Life Apostolic Church to the Messia L eran' hurch, to the Shelter For Abused Women, to Guardian A - ite to Centers for Learning, Catholic Church Charities,,,, ,• just recently received a request from the Wounded Warri• '14, %; •n ' '' ce we see their 501 c3 status, they also will become a n1.-- `-of t `at portfolio. " S_ o-� j•st wanted to review that data before we get back into the form resentation. And thank you. CHAIRWOMAN HILLER: Let's hold off on any discussion about no surplus 'til we bring that back before the Board and the Board has the opportunity to review the transactions and ask questions of staff. Page 113 Amok Packet Page-2831- 12/10/2013 17.J. November 12, 2013 COMMISSIONER HENNING: Just a simple question just on -- could you forward me -- forward your notes to me so I can fully comprehend that, please? MS. MARKOWITZ: Yes, sir. COMMISSIONER HENNING: If you have wifi. Thank NF. MS. PRICE: I think we had run down the purchasing c ',,„'f . matter. Like I say, the issue here was whether or not we -` • g to require pre-approval for each of the purchases on theca J"`a' ,;whether or not we were going to use these for contract or fo tract. It is my strong preference that using them f• ` r,,.� act purchases creates problems for us and opens up a pleth• • a • ,ortunities for failure. ilL ,. We did come to agreement with the , s ourts to leave in the policy the fact that if a person is c' gee' ales tax for a sale under $300, that sales tax comes to aapr• .v $18. Takes us between two and three hours to try a $ g -a ,,. :i n`, refunded. It's been in our current policy for the last , :k _. tha if at first we don't succeed in getting that refunded, w "Mt,i send a lot of time trying to have that done. ,4_ We found t Iii. ' , , three times a year where we have this situation, and in s °'in rth the Clerk, he agreed that this is de P g � l�' minimis watt to - problematic. So I think that that resolved that piece o And 2, *,_11 and to the rebates, we have traditionally put the rebate s - i ,:al c into the general fund. The time and energy to go .'. = s, 4: 00 transactions to determine the funds that were expended ar=-• e -ns ous. We receive about $35,000 annually in revenue from our d program, and we would prefer to just allow the Board when we receive that money to allow the Board to put it into the general fund. That takes care of all the areas where we have differences with the Clerk of Courts. And I think we probably need to really talk that Page 114 Packet Page-2832- 12/10/2013 17.J. November 12, 2013 .rte.,; through. But I just want to make sure that before I forget we address this one thing dealing with the local vendor preference. We put into your policy two options, and we're going to need you at the end of today to tell us which of the two options you w t us to put into our policy. ` The first is basically what we do right now with the loc. IL-- or preference, which is a price match. So long as a local ve• • • -s within 10 percent of a non-local vendor's bid, we offer ., a ,, . .1 vendor the opportunity to match that price. This h• • allenged once or twice and so we're providing you with 137. r,•: a second option that would be going for a best and fin. ;,7404r e would take the lowest -- provided it was within 10 pe. - ', j: , id take the lowest non-local bid, the lowest local bid . y 1'em for a best and final offer. That has been working w ,.. in a 'umber of other counties and has withstood challenges. So - - : 12/10/2013 17.J. November 12, 2013 Yes, ma'am. CHAIRWOMAN HILLER: No, no, Jeff needs to comment on that. MR. KLATZKOW: Yeah, I agree with the Clerk. COMMISSIONER FIALA: Yeah, I do too. I think there\re ,.,e sometimes some crazy thing comes up like for instance you ' o -- I've only traveled a couple times a year for the county and v - Mt .ys take along our tax exempt thing and you hand it to the 74 ., '- :z;ho checks you in They put it with your stuff, right, a o'!--oillr-1 to check out and you say you have my tax exempt? Yes,,,,,,z: .4.,t And you're driving home and you see that they didn't -- t 1 - you tax anyway. IIIP t Now, the first time that happened to - " ; .°°'t realize 'til the next day. They said it would take me: ! da to ge that back. And I said but it was just last night. Wel ' v w. too bad. But the next time ' I didn't leave the hotel until ., :'';'f- en though I checked with , them, it was still added. So I : =-, ' k to e thing and said you didn't do that, and I got it ' le--ean, sometimes crazy things like that do happen. And I ' t ns the only thing they're talking about is just in a circu you do your best and still they didn't do their best. MR. • -" :Id all I'm saying is, you know, that needs to be Y g Y dealt with i 4,.- ally as opposed to in a policy statement. And I think Jeff agree—. _i e. C lgiH i,', I AN HILLER: So can the policy be modified to e `v than, statement, please? As part of the directions. Thank you G `ead, sir. 1 . BROCK: Okay. You have in front of you a slide presentation that we will go through. Real quick, this is Attorney General opinion, 2001.29, which I can find absolutely nothing which has interpreted the law any different to this. You read it, it says -- it was basically -- the Clerk asked you Page 116 Packet Page-2834- t 12/10/2013 17.J. November 12, 2013 whether or not the county could pay -- the Clerk could pay a bill in a non-chartered county that had not been approved by the Board. And it was very succinct in my opinion that the Clerk of Court in a non-chartered county is not authorized to pay a county bill t t has not been previously approved for payment by the county commiss . Okay? Sort of hard to get around that one But there are of e ` • k.- :That talk about the Board has to approve the public purpose ,,:,g ,i. county expenditure. The next slide is an excerpt from an additi• s orney General's opinion. The Attorney General's O• • . In the absence of the statutory authority, and I h 1 , , ' ted, I'm unable to conclude the power to execute contracts Ilk o the County Commission may be delegated to a c•�.. qty a iiinistrator. Okay, I find absolutely nothing that changes the.,.. Then if you turn to the RIO NI%`: S . e this 1974 statute that has been modified man times a . u 1 se h t thy � �o see the county administrator, in subsectio . S�`� s his purpose or function is to administer and ca ou ' • =<<-c'tives and policy of the Board of County Commiss ; s ,-: force all ordinances, resolutions, regulations to the B`!, d t•` nsure they are fully executed. g Y Y Negotte ses,' •ntracts and other agreements including consultants ;. Y_ice or the county subject to approval by the Board. That's the - ing I'm asking that take place is that the Board • �.:.�, approv '' d make recommendations concerning the nature and •`-_ county improvements. Th next section of that particular statute which clearly enum tes the legislative intent: It is the intent of the legislator -- this is subsection two, it's not highlighted. I know, go back one to the statute. Okay. Go to section two, right under the highlighted portion -- it is the intent of the legislature -- this is the legislative intent as enumerated by the statute -- to grant to the county administrator only Page 117 Packet Page-2835- 12/10/2013 17.J. November 12, 2013 those powers and duties which are administrative or ministerial in nature and not to delegate any governmental power imbued to the Board of County Commissioners practice as the governing body of the county prudent to the constitution. To that end, these above specifically enumerated powers a to be construed as administrative in nature and in any exercise` governmental power the administrator shall only be pert*. r• duty of advising the Board of County Commissioners. ` Now, that's the 1974 statute which has been a ",`' any times since. 2013 and 2013-40, that's this year, ladies .,t . •"5- tlemen, this Board of County Commissioners adopted the r .,• dministrator's Ordinance which says in keeping with Fl• ; A a . a' = 2959, grants to the county administrator only those power: °, ;•`N 'es which are administrative in nature and not to de gate a•y governmental power imbued to the Board of County C. s'.''k•ner pursuant to the a tyC sp constitution. ; ° �� One, they have authorize r • o u hie authorized to delegate to negotiate leases is basicall ; It e language right out of the statute. They can negotiate the '. • r them out All they have to do is work them out to o i-a• @ you to give them this number, okay? And that's purely a . ' is ecision that you must make. The n - t —t e is. he P activity card, or P card activity. In 2011 we had 5,91 - an .1 ctions. In 2012 we had 10,224. If I'm not mistaken, , ` 'k it directly from the county's numbers. We didn't calcula 1/4- •Irk -rate this ourselves. e'Ti '' --._.ota- dollars was about $2.4 million. CHAIRWOMAN HILLER: If I understand correctly, are you � Y sayin , ' at you actually had a transaction on a purchasing card? And a P card is a purchasing card. It's a credit card. MR. BROCK: Correct. CHAIRWOMAN HILLER: For almost $20,000? MR. BROCK: We're going to get to that in just a minute, okay? Page 118 , Packet Page -2836- 12/10/2013 17.J. November 12, 2013 Anios You've got the total number of county employees in this county. There's 1,800 employees. Based upon the information that they've provided us, they have 450 P cards or credit cards out there that your county staff is buying off of. That's a limit of$1,000 per transaction for $10,000 per month times 450 employees. Now, we checked, the Sheriffs Department has zero cry , ' ds; is that correct, Crystal? Zero credit cards. I have one, it' c 7), d exclusively. You've got 450. Now, if you multiply the ,. .- '- .a exposure that we have out there from the P cards, 7%11,times 10,000 per month, or $4 million a month. -iplt CHAIRWOMAN HILLER: Four milli. I -..F,110 • onth. CHAIRWOMAN HILLER: Okay,j t„,,,,,„, A Now, these -- pardon my comment, b ! re t ings that you all never see. Have you all ever -- ev=> thoilgh you ve approved them, have you ever thought about pote . 14. al ramifications that could be created as a consequence o; • , om people you know nothing about that you've ap• '. rou ° a policy? You've approved it, okay. Think • t a t, ladies and gentlemen. Under the current ; y*_ t• e next one Under the current process, purchas- , W bard approval in zero to $3,000 comes to 4.2 in 2012. From r 00 50,000 is 14 million, 811. For a total of $19,54,47:;; '. is b-`° ically transactions that you never see. You do not approve:;;..' st ink, that's -- between 53.4 percent and 59.6 percent wish... b‘ hases up to $50,000, this Board of County Com ' 'Fs e hich is the only discretionary body in this county, d , s P oes not approve. That's not legal, I would suggest to you.., It ltimately the responsibility of the Clerk to determine the lega1itobf the expenditure, and I will not pay them in the future. I want to work with you to come to an amicable solution that works for us all. Now, this can be done in a multitude of ways. For example, you can adopt a project budget. By doing that, you have then determined the public purpose. You can, through the process of Page 119 Packet Page-2837- 12/10/2013 17.J. November 12, 2013 whatever means you want to do it, identify how you wish to expend the funds. I don't care how you do it, as long as I know you have determined that there is a public purpose. But I'm going to be looking to you to give me that direction, not somebody else. And then you can adopt broad contracts. Just like you do r office supplies, you can do it for small stores. You can do it r, anything. All you have to do is manage a little bit and fi +t ,.- where you're going and do it in that particular manner. a And then all you have to do is issue a purchas-. , . t becomes a relatively ministerial function to issue that pur *rder, based upon the contracts you do. For example, I do not care. This is p+. 71 • • + yY question that you have to answer as elected officials. Y• ''4 1 }• o allow the county staff to go over to Home Depot and p has:..t Home Depot. Your policy and your approval process _a; I •u can go over to Home Depot and purchase anythin_ ti -.o - 0 ‘ •ot sells at the price that they have posted or charge y• ' =.• That _ ves me the direction of the Board. Then all you've go ± • �'` have to know what project or what the public pu os • ` h expenditure is That is totally up to you, not to me. '77t i I just need dir-" 'on ./'`Y'to what I'm supposed to audit to to ensure compliant vi our directive. If you' ►,ek a e next slide, which is purchases of zero to r,. $3,000, t e' ,. ist of purchases or vendors that we have purchased from ze `_ ' ' 0. Okay? Now, in 2011 we purchased $42,000. .2`, - tl t by three, we've got, what, a minimum of eight purchases. Ys' 1''. by the time we get to the second, it looks like somebody figur ; -"tut that we probably ought to figure out a way to competitively do that. But that is the problem that we are experiencing. The same thing with the rest of these. The reason the three are highlighted is because they're also purchased -- the next page is just a Page 120 Packet Page-2838- 12/10/2013 17.J. November 12, 2013 continuation of the list. But then you go over to Page 14 and you will see there is an additional purchase of 3 to $50,000. And we have $281,000, okay? With Communications International, Inc. Looks like somebody would have figured out that, you know, we neid their goods and services quite frequently, maybe we ought to be bi ng. When I saw this when my staff brought this to me, I wey,fitly IT Department, okay. And I said to them, I want you to ce . .Mt.1 purchasing card purchases that I'm seeing here, becaus some relatively large computer contracts at the end of las want you to pull out the items that we can identify as corn A 'R= ,-lated that you can find. -, lik And what we went to was the state c, F r :D WG, okay. And we bid those items. Out of those that 4 . •; ., e paid a total -- and this was over four contracts that cou pull i ems out of. And Commissioners, I'm not trying to s =o you that this is a representative sample. It's n. ,a .'c i •` random several. It's certainly not a statistical sam,k • upon some statistical model. I mean, it was just me want' i what was going on The extended cost,,_ ems that we could pull out of CDWG was $85,555.58, . We then w n e t 7 the - orida State Contract for CDWG and pulled the items o oti ere. 'k. d out of that, it was $109,000. We then went to the Flori o':;'.to contract for CDWG and pulled the items out of there. A µ u , 1 f that it was $109,000. $109,520. That's the differe Asa. b .s going out for bid from the state contract. .� :,b •omt I'm trying to make here is twofold: One is everybody in tip wtr"• knows what the state contract is All you have to do to get a}titer deal is to go to the marketplace. Because all of the vendors can go look and they know that governments are going -- have the ability to buy off the state contract, if you want. So, you know, underprice it. That's the one point I'm trying to make there. Page 121 Packet Page-2839- 12/10/2013 17.J. November 12, 2013 But the other point is you have an item on the agenda today. And that's for cooperative agreements. What page? Page 12? Okay, go to Page 12. If you look at that, the -- I'm assuming that this is a list of the cooperative purchases that they made last year. Okay, yo414 take the 21.9 percent that we save by competitively bidding those,Nt with CDWG. And please, I do not want anybody to think that this tpi anything other than I'm just going in and looking. This i random sample. We've not used any, you know, precis'>$Npiliting techniques to do this But the differential was 21.9 •; a : If we apply that across the entire board, yo ' '� -. - mg about over a million dollars, okay? That is the point of t : :.-s. Page 13, go to 13. You can see it, it' _ ` r .`.'ust with what they've listed that they've purchased over c ''• . ye contracts. Not my numbers, I'm pulling them from ,, • . You then have on 14 the corn- - now, the process that you use in your budget today is u p,_ •` r d. All you have is that budget by fund. There's no d - it. I c. of glean from the purchase from which you.!,, :• „-t 'i ay anything with regard to what you're approving as a p - • . . ose. There's no project in here. You do some project .it- ,, it it's very limited. If you go and a r` e audit report from Okaloosa County, gs P tY, there was •vR a r�-I lute scathing report with regard to the county activity the .:4 •r ct using project budgeting. Okay. That,,itye'' e the direction that I need to determine public purpo l e k:n-• "ce you've approved that general contract, I'm cool, I cR - a problem, okay? .Th other slide on 16 is just an example of the detail that's in the book. ` ;n t it's never approved by the Board. And that doesn't give us the -- you've just got operating expenses; you need to break that down a little better for me to know what to pay, okay. We went to -- you know, when I began looking at what was the position of the county, the position was one of oh, we're going to have Page 122 Packet Page-2840- 12/10/2013 17.J. November 12, 2013 a hire a lot of new people. But you've got 17 plus employees in purchasing. You've got fiscal people, probably hundreds of them, in the various and sundry departments. All I'm saying is you do what you're tell me you do now, and all you have to do is bring it the Board and get them to bless it. That is the only thing that I a ying. That's the only thing that the law allows. Or that's the only t iNs3. e law requires. So think about what you're doing here today, Co ers. Why are you sitting here in the Sunshine'? The p ' do government's business before the people, not in v.co, ' ate rooms. And what you have essentially done is with a ,-e,,,- ransactions ii,that are being handled off the Board's app zc a n delegating that to be done outside of the public purvie - 4 that's almost $19 million. With regard to the cooperativ-.;,. e �i ents that you're going to be considering today, one of th- ;Ti' t .,und most amusing, and the only reason I was asking .t' 4„ pulled off last time was for it to be discussed in conjunctio m --entire purchasing policy. I mean, I just could not let it go ¢ . ,,p k comment. You know, y� ,. . a,tie agenda item on 10.8 that we discussed to be pulled, okay, " ays ` •licitations are in fact competitive in the market wit- pr g o y "-red being guaranteed the lowest price for the quantity. e!q= st lined process for vendor community. Tod.;::AL a_.-nda said will divert staff from using local vendors. I felt th. E .,' .- .F • e:to being a little bit inconsistent. --- = ` •e: ex" one -- the first one was aggregate buying power of public agency, okay. next one is the cost of an item will be eclipsed by the administrative cost of the transaction. The one that we asked to be pulled back in October, generally more timely buying event. The one today says will delay receipt of goods and services. Page 123 Packet Page-2841- 12/10/2013 17.J. November 12, 2013 Appears to be just a little bit inconsistent. More favorable terms to the county which respect to freight and shipping. The one today is may result in additional freight and shipping costs. Streamlining process for both purchasing and operating s Xf. The one today says will still require significant oversight b it:‘,.. ,., purchasing to review the methods used to invalidate the i `'' these purchases, okay. CHAIRWOMAN HILLER: Can I just ask a q,,4.. A ; stion? Who prepared this? MR. BROCK: Who prepared what, my � k CHAIRWOMAN HILLER: Leo -- !. . ...red the executive summary that took the descripti s s ' a 1 .erative agreements on 10.8 and literally turn :fit on 'ts heal in 11.12? MR. OCHS: Commissioners ow that it got turned on its head. You know, you ha :l' i., • «: a aas usual being pulled out of context and being used to i h-° e. I mean, if you want u e back with some complete analysis, I'll be ha. .y t®.. . • 't;` we need some time to respond. CHAIRWO '''.% "' - R: I think it would be worth your while to look into that. .. ' MR. t; ` An !►you're comparing cooperative purchasing agreements h Y -«O ink purchases for small dollars, maybe two separate t r .•ut -- C A ` 0 • N HILLER: It would be good to get clarification Mi ,. CHS: That's fine. 06 MISSIONER FIALA: May I ask, how much have they -- how much of our total budget every year, the taxpayer money that comes in, how much of that goes to the County Manager's Office and how much, say, goes to the Sheriffs Office, being that you mentioned Sheriff a couple times. How much of that? Is it like 17 percent or 19 Page 124 Packet Page -2842- 12/10/2013 17.J. November 12, 2013 percent comes to the County Manager's Office and is it about 43 percent that goes to the Sheriffs Office? Anybody know that? MR. OCHS: I beg your pardon, Commissioner. COMMISSIONER FIALA: You haven't been weighin on every one of my words, Leo? MR. OCHS: Could you ask it again, please. COMMISSIONER FIALA: Yes. Of the total budget es to the county from the taxpayers every year, just to the :. " . not to the school board or anything else, not to MSTUs, j unty, of that budget, how much of that budget comes to, • •ge-wise, comes to the County Manager's Office and he ' ; goes to, say, percentage-wise, goes to the Sheriffs Of `'°®7 •;, ' e the Clerk mentioned the Sheriffs Office a couple ti MR. OCHS: Well, I think abou • pe -"m.ent o the tax bill comes to the County Commission and th- + .lit that up. COMMISSIONER FIA .!h & total tax bill? MR. OCHS: Yes, ma'a �-. �.� •"`.{ w en ou split that up between -- COMMISSIONER F k A :.m that 29 percent? How much then goes to -- MR. OCHS." • , . ' 4 " think to your agency, 13 to the Constitutionals, the eeing the bi gg est recipient of your general fund. COMz SI ER FIALA: Yes. Okay, fine. 497. The on:I'm asking that is I was just wondering, being that we don't purchasing or anything, or taxpayer dollars that ` does everybody have to report to the Clerk of Courts and do th=' als : Piave to go through this rigorous routine so that everybody has t` 'ame criteria what they're purchasing and before they get paid and so forth. MR. BROCK: I'll be more than happy to answer that for you, Commissioner. COMMISSIONER FIALA: Okay. Page 125 Amok Packet Page-2843- 12/10/2013 17.J. November 12, 2013 MR. BROCK: The answer to that is the Clerk of the Circuit Court is directed by statute to employ the statutes related to the Board of County Commissioners and auditing expenditures of the Board, not to any other agency, either the Constitutional officers, the sc ool board, the independent district -- COMMISSIONER FIALA: Who does that? i, " MR. BROCK: That is a decision that was made by ' . legislature. So if you get elected to that you can chang • we'll play by a different rule book. COMMISSIONER FIALA: No, but what ant to know is being that we have a pretty small part of the ,A be +oes oversee all of that, or who do they you know, for a y -- y , • � � :� • ' Brent purchases and everything, who oversees th '_ .• of the other departments? COMMISSIONER HENNIN II of on the agenda. COMMISSIONER FI • COMMISSIONER HE "`°I ,. It's t on the agenda. MR. BROCK: I'm a Vt,. • , hat the Sheriff follows the laws regarding the Sheriffs 1 ;a _ but I don't know that I have no idea. That's not r J • ' :` COMMISSIO R • LA: Okay, I just wanted to know that. And by t ay, e just got this handed to us as we were -- as you started s 'ect, so I'm sorry but I have not been able to study it or anyt ' . ou know, I'll take it home with -- V-IVl 4 ' - lk If you have any questions, I'll be more than happy parrs them as we go through. It's not really complicated. -' CC ` VIISSIONER FIALA: Okay. MR. BROCK: The next one, 19. I'm just going to show you some examples of what we deal with, okay. Board of County Commissioners, okay, entered into a contract to engage in trenching a water system and rehabilitation services. Okay, the Board -- this goes to your question, Commissioner Henning. The Board entered into the Page 126 Packet Page-2844- 12/10/2013 17.J. November 12, 2013 contract. We then get bills submitted to us for items that were not in your contract. So what transpired into -- bring this down to a very simplistic explanation of what transpired was after we discov red that they were trying to get us to pay for things that you had not ap oved in your contract, they then went to Boca Raton and tried to f „vi . contract over there with the items that they were trying t• ,_6, . pay for in the contract. It didn't work either. But this was I.ad been submitted to us before they ever went to Boca Rato And how do we know that? Because we c• -=° ' ca Raton and talked to the people over there. Any questions? Ite444: '44 - (No response) ' ” MR. BROCK: Next. Suncoast �« liver This county had entered into a contract with multiple vend•. 4 oving, okay, and had delineated the process by wh ' \ .,' = I be chosen. At the end of the contra• : ' .- ' -the '1•unty staff decided now you had approved the cont,z lb t them, you had approved the contract. During the c• - t -nod county staff decided that they wanted to enter i 11 k * e I intact for moving and went to Suncoast Movers. Now, h4p4r, e q 0: stioned staff with regard to this, we were told that oh, we it Zit for bid and all of the people that were on contract with the co ad an opportunity to bid. eG on't know the truth of the matter with regard with u 6,z-1 but we contacted the vendors. And one of the vendors toles 1?a I'm the only person that does this, we never saw it. But they ee=red into a contract to pay more than what you had already authorized in your contract. And we refuse to pay any more than what was already authorized in the contract. Okay, any questions? (No response) Page 127 Packet Page-2845- 12/10/2013 17.J. November 12, 2013 MR. BROCK: Next. CHAIRWOMAN HILLER: Wait, Commissioner Fiala? COMMISSIONER FIALA: Yeah, I was just talking to the CRA people. You know, you've been here most of the day and it 1 oks like we're never going to get to it. And it was just a report to just t us how the CRAs are doing, I'm pretty proud of you, but I don't, ' ou should have to stay any longer. How does the rest -- we ‘ l that off the agenda. Because it was my idea to put it o first place. If that meets with everybody's approval, we ese people -- yes, ma'am? -, ,. MS. JOURDAN: I have one more item ''< . :,ends. . COMMISSIONER FIALA: Oh, ok., Thank you I'm sorry to change the subject there ,1 • I ent. MR. BROCK: No problem. } The next item on Page 21 is • , ' card transactions to Best Buy for computer stuff Loo , T , 1.,,.%'- ,gib figure out some point in time that we're going to be b 'a. I pu -r stuff and get a master jr contract for all that, as op a - •';°ust going out to Best Buy and buying it CDWG, we' . -en the example that I showed you with regard to my purch ` g. `-” The Pet yo a got 68 plus thousand dollars to FGCU for education obur ployees that to my knowledge you've never approved. c ., have, I stand corrected. But I'm totally unaware of. You h I i11 from Wal-Mart, Old Marco Lodging, Print House. ti ; u examples of your P card transactions. 4it °we have Paradise invoice for photography, okay? ? A IRWOMAN HILLER: Why are we paying $6,000? MR. BROCK: I'm sorry? CHAIRWOMAN HILLER: Why are we paying for the Destination Marketing Association meeting? MR. BROCK: That's a tourism expenditure? Page 128 t Packet Page -2846- 12/10/2013 17.J. November 12, 2013 Amok l COMMISSIONER HENNING: Yes. MR. BROCK: I have no idea. Okay? Paradise inventory for photography, okay. You have a contract out there that, you know, quite frankly, you know, I can't figure out what it is you've aroved, but we've been paying it. Let's give you the example with regard to what transpir, . '-'_ Okaloosa County. In Okaloosa County the tourist devel•,• manager purchased a yacht for him and had the vendor t yacht in his name and put it for advertising, okay? Now, to give you a very recent scenario of 4�-, 'k encountered a similar thing here in Collier County, do you r;, ,��,- : .i e airport? There was a -- what was it we were looki w o' =:.airport? The dirt? What was it called? No, no, what waa 4 . ,•rt that we were looking for with the fill dirt -- the en_'., ers ere supposed to do a -- what's that -- what was it called? (Commissioner Hennin L ,e '� ,-..':o rdroom) MR. BROCK: Anyway p+ - re s posed to do analysis of how much dirt came out o q t • Well, when we got to looking at it, what it amounted to �� �►=.''"e out almost to the penny to what was in the contra 'Il r .`` ould find nothing where an engineer had gone out there and = -asu 4 how much dirt was removed from the hole. The :: -xitt 1 ing - know, we get a copy of a document, I cannot remember t'°. ' a --. of that document. But I mean, it's a term of art. And whenft INtre beginning to look at that, we're going well, this is the sa hat was on the contract too. S the vendor, and the vendor sends me a copy of the paq eq . And all they were doing was comparing what was subm` "d as a bill to the contract, but the contract with the engineer or the agreement with the engineer was we're going to put on it and call it this term of art, even though it's really not what it is. So ladies and gentlemen, you can get anybody to put anything you want to on something. That is my problem with it not being aired Page 129 Packet Page-2847- 12/10/2013 17.J. November 12, 2013 in public. One of the other criticisms in Okaloosa was that the vendor was in fact making the determination of what should be purchased. We've got a very similar situation in Collier County. When we beg-. looking at this, we determined that the county was paying for ` . wardrobe costing almost $6,000, so we immediately began i 4 ` * :, well, where's the wardrobe? And we discovered at that p•i4` e, oh, we will get it for you. Well, then they couldn't get ' • ,. e later discovered that oh, we gave it away. Okay? But catering costs of$6,000 charged with 1 akz. ' •t. When we began looking at this, we discovered that obv'' Pit a talent is not as valuable as East Coast talent. I mean, % - .. , . o twice the cost for them to hire East Coast models over ;,,® . models. So we went to the people to ask _ - m w y they did that, and we were told, Paradise told us to 1In fused to pay and they reduced their bills by $19,801k % e", t r:.- problems I encounter on a daily basis, okay. . µ . A You have an agenda 'y fro y dealing with a tourism contract for AVIA reps. The a:n • m. i'. . itself says, ladies and gentlemen, that the Collier C ,‘=s. n• s Bureau, not the Collier County Board of County Commis er `' ey're asking you to approve a contract for the Col runty isitors Bureau. Now, n wg first got that particular agenda item, it had in there that i4s� done by the tourism director, not the purchasing departs mt:, rc`hasing department didn't have anything to do with it 7-,_ agenda item today, that language is not there. i OTC':i - /•1, ? ' h is the original. Purchasing staff was not included. Go to 4„: the o `` or today. MS. KINZEL: It's side by side. MR. BROCK: Oh, okay. It's not there. But this is a three-year contract. And the language says that the tourism director will create the contract. So I'm assuming -- now, this Page 130 Packet Page -2848- 12/10/2013 17.J. November 12, 2013 ow is a $50,000 contract for a three-year period, which is by my calculations $150,000. And the tourism director is going to establish what it is that they contracted for by developing the contract himself and entering into the contract with the Collier County Visito Bureau? Hm. If he does, let me assure you, ladies and gentle n, the bill won't get paid. Next. If you look at the transmittal sheet, it says that thi•' - ough the purchasing department, okay? When in fact b• ?• ; all of the information that we received from purchasing, i . , -I•t. It went to the TDC and they stood before the TDC and !4i.,, `fi k didn't. And if you look at the TDC agenda, they ackn e• t`t ,t it didn't. You're not seeing it and it's put on the con da, okay? CHAIRWOMAN HILLER: An. o• did you see this? Did you see that they Y took out -- MS. MARKIEWICZ: a Mild it, ma'am, it had the language from the purchasin• . , it. CHAIRWOMAN HI:r •. d then it was deleted? Leo, who would h '0 a fed it? MR. OCHS.-' r1 ;.,1 as an original draft by Joanne and then it goes through sev- y o routings, including mine. Now, this a • rchasing for under $50,000, so there are different ruap ' d to procurements below 50 than there are over 50. . C.' • r 9 AN HILLER: But they deleted Joanne's remarks. 1=, 0 S: Commissioner, it's not unusual for drafts to be a , ; de fore they get to final form and printed on the agenda. ' = ''AIRWOMAN HILLER: So if I understand correctly, purchasing looks at something and subsequently thinks -- and she signs off on it and then subsequently staff can go back and modify what she's approved? MR. OCHS: No, I can go back and modify what's she's Page 131 Packet Page-2849- 12/10/2013 17.J. November 12, 2013 approved, or her division administrator can modify if it's been routed to her. CHAIRWOMAN HILLER: Then she shouldn't be signing off on this. Because if she signs off on something, she's signing offQ n a version and we're assuming -- you know, purchasing is a -- I an, g Y P she has responsibilities. And when she signs off, we're assu r gat it meets with her compliance as presented. And very cle 1 *:I?', w't, based on her comment in here. She -- I mean, if-- di, MR. OCHS: Commissioner, if we're going to - 71; ng draft documents now prepared a week before the fins a and prepare those for final product -- COMMISSIONER HENNING: Thi x ',r 1,- was on the TDC's agendas MR. OCHS: Yes, sir. COMMISSIONER HENNIN • mean, written verbatim it was on the TDC. So -- MR. OCHS: Okay. J\ . COMMISSIONER t`at: 'n : that's what they approved. And in fact there was a t"' _ail,'' pack there. MR. OCHS.' I ` a CHAIRWO '','"4 FriZ,ER: What was on the TDC agenda? Just out of curi, .i .a COM S ER HENNING: Well, I mean, I -- C • MAN HILLER: With or without Joanne's remarks? Cr + t , . ENTER HENNING: No, not with her remarks. It „ ". •e purchasing staff was not involved in the solicitation due to the yep . ent's conduct of their own informal process. However, giventlht the contract is near the Board's competitive threshold of 50,000, staff believes that it meets the best interest to seek the Board's approval. CHAIRWOMAN HILLER: Where is that? COMMISSIONER HENNING: Well, that was on the TDC's Page 132 Packet Page-2850- 12/10/2013 17.J. November 12, 2013 oak mot agenda, Tourist Development Council. I mean, if you want to see it, but I want it back. But here's all the backup for the TDC. There's actually a contract -- CHAIRWOMAN HILLER: For how many years? COMMISSIONER HENNING: -- back here for you to s But we're going to be dealing with this. That's coming ..- .. consent agenda, so we're going to be dealing with that I , t a copy of it, I'll direct Camden to print it -- CHAIRWOMAN HILLER: Yeah, go ahead. ; COMMISSIONER HENNING: -- forwar• :,:a :, MR. BROCK: The next item on Pas 2• * I ; now this was actually an award for copy. Now, you sees . t "* award category A, black-and-white/color copyin_' ' . 4 r Print platforms, one color, carbonless. Primary aware,,' Int: w, . Next one is category D, c`for „A• �,' inting, rack, brochures, booklets, newspapers and po er . . , d is Intech, okay. That's what was approved. Now, the next page, , got them color coded. Category A goes to Cecil's Copy e . is yellow, okay. They just bought from whoever th= r ■ - ' P e ... And it does not meet what was approved. Next one, s isking a lot too long. There's another contract you approv ;W° T is a contract for paint, basically. The last item in the agendwi°; for miscellaneous percent discount for all other paint relate. ,. 'e get a bill. Bill is the next item. This is -- the ��e;` .. '-. g is what we discovered, okay'? '' No , if you look in here, it was 40 percent discount, okay. We get th, •ill, it didn't have a 40 percent discount. And this was their response: The pricing on some of our spray equipment is sold just above cost and cannot be discounted. If you need those items to show a 40 percent discount, we will have to raise the price accordingly. COMMISSIONER NANCE: Haven't you ever bought a car? Page 133 Packet Page -2851- 12/10/2013 17.J. November 12, 2013 MR. BROCK: I mean, this one was almost more than I could take when my staff showed me this one. I have -- we have a -- the going out for bid, okay, we discovered they're letting the bid to the greatest discount, not the lowest •rice. So we've got a $100 item with a 20 percent discount which you c. :et it for 80 bucks. But the same item, if you could get it for $70 • ` : T' percent discount, it would only cost you 63. But we wer- ;it submitted as the lowest bidder based upon the lowest I 'It 171ti without taking into consideration the item. Commissioners, you know, here's the botto •` you know, I want to work in conjunction with this Board. . : e a totally different role than the Clerk of the Circui -,• Ilikti • I created that way for a purpose by our forefathers in the ' • r tion. And it has been fostered through the statutes for tlif sa ,- purpose. It is as a check and balance. I want to work with yo • * ''° ith you to develop the least costly process to compl g ° ,t la . But two things. And all future expenditures in this " ill meet the following two•T_ requirements: One is y n . public purpose determination by the Board through so 4 e L lo, And that's certainly -- if you take that to mean you have to bi i g e•ti"`ry item to the Board, you know, that's nonsensica 'sno�what that means. You've got to do it in some formal rode th ou make the determination of what has a public P P purpose - • � • ��....��xTt. at you must approve the expenditures. County staff effict%bOate, can recommend, can bring it to you, but you're the ones thathaNr.'e tb make the determination. The law tells me the first thing I do be anything else is I must make the determination that the Board has approved it. And in addition to that there is a statute, ladies and gentlemen, which says that if you approve an unlawful expenditure, knowing that to be so, you are personally liable for it, or you have the potential for Page 134 Packet Page-2852- 12/10/2013 17.J. November 12, 2013 being personally liable for it. CHAIRWOMAN HILLER: Okay. Well, Commissioner Fiala and Commissioner Henning. Commissioner Fiala, you wanted to make a comment first? COMMISSIONER FIALA: Well, I was going to say tha e've been able to -- we've been able to work very closely with the over these many years, and have been able to pay most o t i 'ngs. I wish we could have known about all of this before s. : ,- ld have changed it years ago. We've been paying these bill ,r;v ''''&i ears and never realized we weren't paying them legally :. -n again, I think the other 66 counties already -- pay just as w-, ,... . !. - r'e going to be the only one that changes in the State of " i ' t that's what the Clerk insists on, then we're going to have tk ' I just wish we would have known about it a little -- R knee, a few years earlier. CHAIRWOMAN HILLER . EE+ stoner Henning? COMMISSIONER HEN £' ; : .k I don't know where to start. We're purchasing Appl zy ow, .roducts all the time I would imagine it's under c s =-ct -kI don't know why we don't have a repair contract with Ap 1.,-. But $19 mill t•n 1 o .t i money. And I'm sure that we can find duplicate vendors o. '" th- y ears that we should do the checks and balances f wNe getting the best value. That's the ultimate goal is the b' It va 'qe. And I question whether we're getting the best value. In t, idence shows that we're not getting the best value. I unders . tp rchasing cards are being used for existing contracts --, al owed to do (sic). NMI ROCK: I don't have a problem with that bffMMISSIONER HENNING: The Board approves the budget PP g at a macro level, not a micro level. Because within the budget you have budget numbers within a fund such as travel, okay. However, we also approve large amounts in the budget for capital improvements that come to the Board; road projects or buildings or whatever. Page 135 Packet Page-2853- 12/10/2013 17.J. November 12, 2013 I would like to direct the County Manager to bring back a proposed tightened purchasing policy and tell us how he's going to provide a system to where if we're using an item year after year after year how can we be assured that we're getting the best value\Arici the only way you're going to do that is if it goes out to bid. Now, I understand there's unforeseen things. And I thi we can create a policy to identify those unforeseen things. B t � . ow, let's work a little smarter. It might take a little bit more; ' , ' might take a lot more effort; however, I think that we can er job, provide a better product to the citizens. MR. BROCK: Commissioner, alone th• `' "..,e` commit to you that -- and I'll do it right now, I direct the • : ment people to get with the purchasing department and co ' ':kA 'th the least costly way we can figure out how to comply, ith t •se two statutory requirements to make it work too t - �,t of the taxpayer. That's what those are designed to d. ' Xx a -s end to make it unpalatable for you to do any -• =.er t` to get the best deal for the taxpayer. COMMISSIONE: a 1G: And that's what the Florida statutes -- MR. BROCK: eq '' e. COMJI •N HENNING: -- require is the best value, the lowest price Exa ;. what it says. So we don't know if we're getting the lowes '_ 'c 'f we're continuing to do the same thing, that's all. C 2 :,z'a.` ''MAN HILLER: Commissioner Nance? SIONER NANCE: Yes. You know, I think we have -- I t k eBoard of County Commissioners makes policy at a number of di nt levels. And each one of those policy arenas is designed to set the tone on down the road. For example, you know, we just went through the budgetary process. It was a first for me. And of course you need to plan your spending. And of course in the budgetary arena the spending is Page 136 Packet Page-2854- 12/10/2013 17.J. November 12, 2013 Amik planned relative to the revenue that's anticipated you have. And of course it's allocated by division, account and project and so on and so forth with various levels of detail, I guess depending on where you are. The Board of County Commissioners doesn't see a lot ofthat detail. In my view the amount of detail that's present for the p= en called upon to spend that money does indeed frame that ..tic, ,t determines the intent of the Board as the Board approve;: 4.ud g et. Down a notch, not only do you have to plan fo p. , •► g but you have to plan for purchasing. That's where we g- iT.-`'-. bi. and contract processes. For projects, for large pu ,,,,ii. 74,luidelines and thresholds, delegation of authority down , -` ;1 ;• , that make the decisions on a daily basis because the nece ,,r s,-ndmg that's approved requires decision-making. ;.l d vi•'- versa, decision-making requires the necessary spending to P 14 . e decisions into action. So, you know, we've se- - - o ay from the Clerk requesting that all these puree ex. -`pie be put under contracts, Ask be they fixed term or pure r operatives, when indeed the evidence shows that th• ,- -If chasing cooperatives may not be indeed delivering to us t ,s t it -'. So we're on the horns of a dilemma here. Because as wetru ' 'tire our process to meet some of these requirement, find iat the process itself may well be eliminating us from the bit deal. So I " ' ink you can eliminate human decision-making from this pr• . ink if you do there's going to be a tremendous cost f i think it's actually probably easiest on these small purchases. I think d term contracts for a lot of these small P urchases is prob e. -r the easiest way to go. And I will agree, I do believe that the purchasing card program can indeed be tightened up and you can have some more guidelines and framework. But I'm not certain that relying upon purchasing cooperatives and fixed term contracts as an out to reaching these Page 137 ANINk Packet Page-2855- 12/10/2013 17.J. November 12, 2013 points that the Clerk is suggesting we need to get to is necessarily going to meet the requirements to give us the lowest price. So, you know, perhaps we need to have as many different fixed term contracts and purchase cooperatives that we can thereb compare one against the other, take into account our local purchasing g P preference which I'm sure is driving a lot of this. I don't per--: , for one minute think that we have county employees that are • ='T4 trying to do anything except getting the lowest price. I -i r, •on't believe that. There may be a little of that floating • - , 9t t I don't believe that's an issue that this Board needs to add; - - don't think that's the case at all I'm not suggesting that. ' 7 But, you know, we've got to be cares : h. •- ocess doesn't drive us to spend $5.00 to try to save a dol 3% .' .1 1, I hope we can get there. I don't know exactly what the e- � is. I would just encourage everybody to go back and re e s4`;�. . •e' said today. And I have no doubt that, you know, we •'-'nst.0 ces where the results are � Y not what we want to do. W ' em ` mg thousands and thousands of purchases here and they ' .a" , , many people involved with purchases on beh �L • fri 4 my and the citizens at many, many levels. So you can 7 ai take potshots at people and nobody likes to see that. r: u erst. �t I that. I get it. I get it. So wh•'w;' e ,ve to do is try to do the very best to come back and minimize Silk- -°,•rt that we have doing this. Perhaps it needs to be done b ,- , a ieople, I don't know. .d." A IR OMAN HILLER: Okay, I'm going to go ahead and try to ,.r`ze. `'' t of all, purchasing is county government's Achilles heel when it comes to fraud and waste. I mean, obviously if we don't have good purchasing practices and if we don't have good controls over the approval of the purchases made, I mean, we very, very reasonably can anticipate that we're going to have, you know, both those problems. Page 138 Packet Page-2856- 12/10/2013 17.J. November 12, 2013 Ask So to go over and summarize what we've agreed to here today, with respect -- and staff and the County Attorney, can you take notes so you know what to work on to get -- MR. KLATZKOW: I'm taking the transcript. THE WITNESS: You'll take the transcript? MR. KLATZKOW: It's as good as your notes are, ma'. F think the transcripts are better. CHAIRWOMAN HILLER: Okay, skip the notes _ ight to the transcripts. :b. Court reporter, do your best job possible, b- Qi.. _" these guys are going to ultimately look to you for guidance. All right, with respect to contract ad i + •oth the Clerk and the county are in agreement. The only •t needs to be defined is that the 10 percent in addit'%,'al e ,y•enses for contingencies are contingencies which would fal 1,.,the overall scope of the contract as approved by the , • . k With respect to emerge .{,,�- -4,di es, you know, look to the Anok statute for the definition o ,^ k> ,•s •w, emergency. And again -- and also with respect to the ! k'4. a administration, as with emergencies, the expenditure hdL.K i • : t to the Board for approval prior to requesting the Clerk r pa• or approval. So you've got agreement on emergenci:+ ate•,:ell. -7 With r'Y z4Iect ',s surplus, we're not dealing with that here today. You're g o.-1.1...?. taping that back separately and we'll deal with how to deal with . position of surplus property. mgc two issues that clearly remain open, and really they overlap, be see lie issue is one in the same, is the P card program and basic purchases under 50,000. From 0 to three and then three to 50. And they're -- what the Clerk is saying simply is that these expenditures have to have a Board approved public purpose and the expenditure has to be approved by the Board before it's presented for Page 139 Agook Packet Page-2857- 12/10/2013 17.J. November 12, 2013 payment to the Clerk. And that can be achieved by I think reducing -- I mean, for one, you can certainly work on the P card program and reduce the number of cards you have distributed. I mean, 450 cards is a lot of cards to manage. And the process for approval of expenditures on those c. `" is in most corporations, you know, for example, the employee sa going to g o out and buy something, the supervisor signs . okay, and then ultimately it goes to Leo and, you kno - ' ::.- • ,•proves it, you know, it's bundled and, you know, sent in a ,, .7h to the Board, you know, with a detail as a schedule an. r.ckup. I mean, that can easily be simplified so you don't hay: _ -m.E, ,• em with respect to the 9,000 transactions equaling • 4,0 0 � 'llion. And then with respect to the balance s 100 transactions equaling about 16 million, what's s fr looking at the detail, I mean, a lot of these transactions I' e' .,-late to existing contracts that for some reason should vet, • - ° o' •orated as a master contract. Like if you look at %, •s l• :king at that as one example -- if you bear wit r 's` a0d I'll just take the 2011 numbers, because they were suit e Dell for transactions in 2011 under -- between zero and % I a _ - 1,000, and between 3,000 and 50,000 was 180,000. So in *_41 +'.0 spent 220,000 on Dell. I'm sure you had additi•, .1 trac with Dell. If that was all, you know, consolidates. ; d stu had some sort of an agreement with Dell that said, you l 'ncluding purchase such as with the following price of X, Y . 1ti .`.�t : ou could just go out and have that authorization by theiN. touy from Dell that would then allow the Clear to pay and it vouldi*be, you know, relatively a simple process. i think on the purchases up to 50,000 which are being made with staff discretion and without Board approval, I think that needs to be revisited. Because obviously the Clerk has made it clear that he's just not going to pay that anymore. MR. OCHS: Well, Chair, there's a question between whether it's Page 140 Packet Page-2858- 12/10/2013 17.J. November 12, 2013 illegal and whether the Clerk isn't going to pay on it, so -- CHAIRWOMAN HILLER: It sounds -- I mean, and this is, you know, reading this as I have today, it sounds like it's illegal. I mean -- MR. OCHS: Your County Attorney, Madam, you can k him. CHAIRWOMAN HILLER: I know, but I'm reading the Itute straight up. I mean, I'm just -- I'm reading what was present today. MR. OCHS: Well, what that presented were two ' Ay. General's opinion in a couple -- �-4r : CHAIRWOMAN HILLER: And the statu :fir" s: Negotiated leases, contracts and other agreements, inclu• . _ ant services for the county, subject to the approval of ` MR. OCHS: Right. Negotiate. Ther ''7) g n egotiated about three quotes and paying the low quot- •kay CHAIRWOMAN HILLER: • • o, but it's -- MR. OCHS: And that'Sbun � Fa•`° s l i kw.- prescribed by the Board Allk as a policy matter. ,- CHAIRWOMAN HI k `�'- ell, I think any purchase -- MR. OCHS: No, r • what it says, Ma'am. CHAIRWO ,lk Li., R: -- is a contract. I mean, if they -- MR. OCHS: 's C ILLER: -- agree to buy something, I mean, whether iH 's r or. ontract to buy services, to buy product. I mean, Y Y every tim •ak3 use my credit card and buy something, you know, from a q o s a type of contract. It may be a little contract but -- � tYp Y ' ' E: But certainly -- y:;.C ' s• "' WOMAN HILLER: -- it's a contract. . PRICE: -- it's been negotiated. CHAIRWOMAN HILLER: I'm sorry? MS. PRICE: And I think that's the distinction we're trying to -- THE COURT REPORTER: I'm sorry, I didn't catch the first part of your statement. Page 141 Aft Packet Page-2859- 12/10/2013 17.J. November 12, 2013 MS. PRICE: I said I don't see where that is negotiated. If we walk in to Wal-Mart and purchase some item -- CHAIRWOMAN HILLER: So what you're saying is -- MS. PRICE: -- it's not negotiated, it's a price. CHAIRWOMAN HILLER: -- if something has a stated 'ce that it's okay for an employee to buy it, and the Board hasn't >3 " + ed the public purpose, the Board hasn't approved the expen•• P P rP .-. MS. PRICE: Within the framework of the purch. ,. • icy, that is my position, that is the black box that I refs ,t,1-- • , ore that we get to operate in administratively. You give ''ya e guidance, and then we don't negotiate, we don't really u '_ r•,.) ent other than to purchase or not to purchase. And we foil• t`'•se'r• 'rv•selines just like every other county does and as a matter o "} e way the state allows state employees. , MR. BROCK: Commissions ,,. ''v=;,•eard that's every other county. We actually contac . ‘'•' t- s, and they're all over the board, okay? IT But I will be willing .• after the Okaloosa County Auditor General and the s ` 3`'' 1g called before the Joint Legislative Audit Committee ' ` . 11 .", a that we will begin to see changes in that. r .t A But b-� h.0 it y, Commissioners, I have to make a determinate s w "•f • Y- legality of the expenditure. That's -- and as the Supreme ; says, that's my discretionary call. And Attorney Genera . i k.'a ris have acknowledged that, court cases have i' dge: that The Attorney General has specifically acknow�,-dged that, and inquiries that I have made, that I'm the one that 11. .. 'o make that call and nobody else. But I guess, ladies and gentlemen, there's another alternative. You know, you want to throw down the gauntlet, throw down the gauntlet. We did that for seven years, now where did that one get you? Okay, I want to work -- Page 142 Packet Page-2860- 12/10/2013 17.J. November 12, 2013 Awok MR. OCHS: Commissioners, I am not interested in throwing `" M.. down the gauntlet. Whatever you decide as a policy matter is obviously your discretion. I just don't want you deciding to change your policy because someone says it's illegal. If you want tohange it to get more efficient or more competitive or whatever other poly decision you have, I respect that. But, you know, again, I'll say it for the third time, lop executive summary and tell me where it says the polic , »•u've been operating under is illegal. And I'm not saying that, your County Atto I ites the legal considerations for you, not me. % COMMISSIONER HENNING: In ', 12 7k1 it doesn't give the authority of the county administrator to'fe'. ;t, • any contract, all right. So tell me where it says in law - 4 t it `_'yes the administration to approve contract. I'm disappointe• .< • "tip,•p: that you feel a purchase is a contract } MR. OCHS: No, sir, th.“,&°& stir p• ition. Appktk COMMISSIONER P r Well, that's what I just heard. CHAIRWOMAN : I said that COMMISSI 4 .' ,.. P\1 ING: Okay. A purchase of an item is A � a contract between coin and whoever we're purchasing from. MR MR. Afit, Th. 's what we've been told, sir. COM SER HENNING: Okay. Well, that's what I just heard up flew. S ' M CIYes, sir. • SSIONER HENNING: However, I think that we can pra ' yde o e guidance with the purchasing. If, you know, you all feel it is a� ontract, I think we could provide some parameters to do that, okay. But yeah, it's -- I think you're going to bring something back that is going to be a lot less than the thresholds that were provided, so -- CHAIRWOMAN HILLER: Well, again, you know, what the Page 143 Packet Page-2861- 12/10/2013 17.J. November 12, 2013 statute says is what staff can do is limited to what's administrative or ministerial in nature. MR. OCHS: And the Board has the discretion to determine what that is. COMMISSIONER FIALA: But then what happens whe ey're out like repairing some of these things in the hallway or in o ' ' 1 e or whatever and they don't have a tool or they don't have - • w ; •ils. Do they have to wait to finish the repair 'til they can g-.1 .,, • al to use their P card to go buy the nails? ,p' MR. BROCK: No, Commissioner, you do 'M ,. to approve ri every paperclip either. COMMISSIONER FIALA: Well, I ' .• t - - where is the distinction then? MR. BROCK: That is an often . .-d c -'-he of absurdity. And let's talk about the contracts, Corn T, • r. You go purchase an item from Home Depot or anybo e y r'>zy o •kay. What you have done is you have said to Ho * I yo give me that item and the county will pay you after.tb ilik-= approval by the Clerk. That's a contract. Any way o ;;..i that's a contract. COMMISSI r4 ��� "c I ���'-A: So I don't know how you just " . answered me. Tell w y ou're -- MR. •;• et' 1 : The answer to is you can take anything to the point of abs 6,4 ity commissioners. That's not what we're trying to do. You kno ; "._ � ojust enter into a blanket contract for small stores. r. Easy w > :t all it. !n�� ,. ..4"' SIONER FIALA: Well, that's what I asked was how we d 4 A Ithandle this So you -- BROCK: Same way you do it with office supplies. And you then have a -- and you can do it as simply as saying you can go down to Home Depot and buy at the off-shelf price. That then gives me direction as to what to audit to. COMMISSIONER NANCE: So let me understand, sir. What Page 144 Packet Page -2862- 12/10/2013 17.J. November 12, 2013 .4 0141 Illt you're saying is that if we have -- if the Board of County Commissioners together with staff is to arrive at a pre-approved list of vendors that will be used for accounts and their divisions for those purchases that can't be covered by'a fixed term account or a purchasing cooperative, then you'd be satisfied with that? ' . MR. BROCK: As long as they're expending it for an it iitO you have determined to be a public purpose. l' COMMISSIONER NANCE: So if it falls within trek' dgeted accounts -- MR. BROCK: If you have it line item de . where I can determine that you have budgeted it, yes. - `-� , Is) MR. OCHS: That's another new rule 'r. o 1- need a line item detail budget that's about this big -- COMMISSIONER NANCE: W t a s= ond, m talking about a list of accounts in your different as• -4 isative divisions. I mean, you probably have a short list of c ',s ,'`.' ch one of them used, do %they not? ' `" "' a i. . MS. PRICE: Comm "cera e've got 2,300 vendors that we use. CHAIRWO 4. A` �:� f R: Can I give an example? COMMISSIO . 1:R NCE: No, wait a second, wait a second. You o w.4n your budgeting when you go through and make up your budge sc' s.tkice, how many accounts do you have in your division t r • 're assigning cost to? ' Twenty, maybe 25. You're talking about line i • C r:. ISSIONER NANCE: Yes, yes. M . PRICE: Probably 20 or 25 different line items. COMMISSIONER NANCE: So if somebody was to go from your division and make a purchase and assign it to line -- you know, account number X, Y, Z, which is administrative materials and it goes to a pre-approved vendor, is that going to be sufficient for the Clerk? Page 145 Packet Page-2863- 12/10/2013 17.J. November 12, 2013 MR. BROCK: Yeah. As long as you have identified for me that it's being expended for a public purpose. If you have identified the method by which they're purchasing it and what I can audit back to to ensure that they're complying with what you directed, I'm a l , ppy camper. That answer your question? CHAIRWOMAN HILLER: It's very easy to do. MR. BROCK: It's very easy. CHAIRWOMAN HILLER: It's extremely easy. M.�e not a real complicated -- -., 3:, you MR. BROCK. This is p ,..� y know, this is a battle over discretion. This is not .- 1 •licated x, process. CHAIRWOMAN HILLER: Not at . • , • : to give you an example, let's say for example we make re i<F r ' d our buildings and we need to buy basic supplies, w-, y n o ° of nails. You have a list of approved vendors that the b' a►;•roves to purchase nails; Home Depot, Lowe's, Ace ,'°d • ,;-, ,e • vi at you're allowed to purchase, you know, nails or, •w, • • ically building supplies to _ make improvements to co ' ,•r 2 erty, purchasing from any of those three vendors, hypothe The bottom gtis 1:i- as to be some sort of evidence that these employees ar akr these purchases for a valid public purpose and are no u3t4g lik--,•rills to take home to build a boat. And that's where you e toave some sort of control. MR. : And we do, Commissioners. C u � N HILLER: But let me give you an example -- - . ' .�...1 . 0* -IS: You can't expect 12 ideas or 12 anecdotal incidents the ,;: an: •ver the last seven or eight years and conclude that your pure g policy is out of control -- CHAIRWOMAN HILLER: No, no. MR. OCHS: -- and I resent that. CHAIRWOMAN HILLER: And I don't believe that anyone is drawing that conclusion. What's very clear is that controls over P card Page 146 Packet Page-2864- 12/10/2013 17.J. November 12, 2013 oak purchases and consolidation of, you know, identified vendors that the county should be buying from for, you know, certain purposes needs to be tightened up. MR. OCHS: I agree. CHAIRWOMAN HILLER: And to give you an exampl - MR. OCHS: I agree. CHAIRWOMAN HILLER: -- computers. Right. �t MR. OCHS: I agree. But that's a far cry from sa ,. -, every single purchase made here has to come in front of t i Cr-a to get pre-approval. And that's the basic bottom line • -• it. MR. BROCK: And I never said that COMMISSIONER HENNING: Ye. is ng our nose out . of joint here. -- I think what was said, a•.•.,it is ovided under each of the fund (sic) is the more micro b - • i `...that your budget department has, travel, you v.,o% ,1 .',- ``' land things of that nature. So it's already there. He's jus 1- • at Are approve it However, I don't kn. ,' .; a we're going with this We can,just like Commissioner Hil ' '•, s real simple. Let's get a policy contract or a poli k%' `a . , -. &an go to Home Depot, you can go to Lowe's or you can• .``o •''-e Hardware. Howe <-r, ,' - ha °"a contract with Ace Hardware to do purchases and it was 1 " .erc .t over cost or something like that I don't know if that's still - .ct or not. We should try to get that. B.,! -: 1, we could still get there, you okay? And I'm lad Y . _ .... let s try to provide best value, best pricing. So in the m=. • t - think that we can do those general purchases through okay,`' a can go to Wynn's Market and buy sandwiches for volunteers or something like that, you know, in the purchasing. MR. BROCK: You know, I heard during the discussions about this that, you know, what do we do if an employee wants to go to 7-Eleven and purchase a soda at lunch? I mean, the first thing that I Page 147 Packet Page-2865- 12/10/2013 17.J. November 12, 2013 thought about when I heard that was wait, why would an employee be purchasing that at lunch? And so we went and looked, see if we could find any employees purchasing a soda at lunch, and we couldn't, okay. COMMISSIONER COYLE: Did you check beers? MR. BROCK: No, we didn't check beers. But, you know, there is a way to get there that is much onerous that gives us the ability to do our legal job as the a, us to do it, you know, with regard to P card purchases. You know, P cards are a new event here in Col nty. We were able to get along without P cards for a lon• x "` And now they have become something that we just can't liv- But let me give you an example of t at type of lack of control creates. And we have not gotten , ttom of this completely, so -- I mean, but we see • z rge mber of$15 membership purchases to Sam's C • ill, ean, it was just a huge number of them. And we're =,Gift • ' So we called Sam's. No ` . as --and I'm not telling you we have gotten to the bottom =-s ;,;e t, I mean, this causes us some concern. They say o ., ' • ` a membership that is a corporate membership that <, s a' •ny card members as you want on that membership. The • , li `''station is it has to be paid by a business credit card r .': sines check. But there's another one that you can buy a $15 be : iip and you don't have to pay for it with a company rqd and or a company check. So what's the first thing that - ' r mind, Commissioners? x m` SIONER HENNING: I didn't get one 4v ry ROCK: Are we paying for somebody's ability to go to Sam'shd purchase their personal stuff? If we are, that causes me some concern. So we will be looking at that further. But that's the type of stuff we're constantly trying to chase down. CHAIRWOMAN HILLER: Well, one of the concerns you raised was the ethics, right? And for example, one of the things that, Page 148 Packet Page-2866- 12/10/2013 17.J. November 12, 2013 you know, we're prohibited from doing for example is selecting a vendor who's a family remember to purchase something from them as opposed to going to, you know, let's say the lowest priced vendor out there. So if you have these very -- you know, if you have a 1' it of up to, you know, 10,000 per month or 1,000 per transaction, an a loyee could be going to purchase stuff from their brother's business* : , opposed to, you know, the lowest priced business out the . is 4 , these are just things you just want to avoid. MR. BROCK: It becomes much more than 'u CHAIRWOMAN HILLER: I understand. , , e -- MR. BROCK: Business associates. CHAIRWOMAN HILLER: -- botto=; . i vg - 'iok, the bottom line is it's very simple. The purchasing ors ' ould simply state the following: That the Board of Co - N C c? missioners shall approve all expenditures and shall pprove that all these expenditures serve a valid p mt •-..., • e '. d that's it And then with respect tot ' 1,ohcy •```zero to 50 being discretionary, that is come ., -' .minated. And then a policy -- an internal procedure is deve • ` between staff and the Clerk's Office to determine how t• l i..$'.; at objective so that you can pay that bill.. MR. I%':1 : .` • that is all I'm saying here today. CHAIIO ■ • HILLER: And that's all you need to do. That doesn't h. tote in the actual purchasing ordinance. How that is satisfi .=,1. •,-I cedural issue between purchasing -- you know, the t° : � �-,. '�bviously would -- you know, approval by the County - .g-'', and the Clerk so that he can sign off on these. And quite frank ` V don't think it's that difficult to do, I really don't. MR. OCHS: Madam Chair, forgive me, I promised at 3:00 that I would advise you that your court reporter is -- CHAIRWOMAN HILLER: Yes. All right, we're done. MR. OCHS: Wait a minute. We're done? Page 149 Amok Packet Page-2867- 12/10/2013 17.J. November 12, 2013 CHAIRWOMAN HILLER: Yeah. I think we're done. Because here's my suggestion. Like I said, we have certain things that we have agreed to that is going to be brought back with modification, so we're directing that the County Attorney and staff, like I said, addr s the definition of scope and contract administration. Otherwise everything's fine. Address the definition of emergency in -- you know e cy payments. Otherwise everything's fine. That as a blanket rule that everything has to be. , -d by the Board before submission to the Clerk. And that as a blanket rule the Board has • ': e that any expenditure that's made serves a valid pus 8 . CIS y - And that's basically it. COMMISSIONER FIALA: Tal. '. g aJ +ut the nails again, right? CHAIRWOMAN HILLER ,,1 r it is. And then we don't need a specific procedure -- e 44: 't ,.specific ordinance on P cards. You need to come up ',a tern -- f COMMISSIONER N4 We're going to develop a policy for that? CHA I RWO R: Our policy is really simple. The internal procedure NP C.•-•s will be developed by staff in conforman - • i the policy that we are adopting. The procedure for expenditure .,fr• d- : 0,000 will be adopted by staff in conformance with the p '. e're adopting. And how you do that procedurally, you cam ,; : h the Clerk so he can help you and say yeah, that sa'ti i , you're done. And then you just work out those details. M . BROCK: I'm a happy camper. That's all I need. COMMISSIONER NANCE: I just have one concern, and I will say it. I wanted to get -- you know, we've gone down and crawled around in the mud on some these different examples and so on and so forth, and that's good, I appreciate it and your message is received clearly. But these people have to be able to work on a day-to-day Page 150 Packet Page-2868- 12/10/2013 17.J. November 12, 2013 oak basis. If we come up with a policy so onerous that we can't get people CHAIRWOMAN HILLER: It's not an onerous policy. You're mistaken. MR. OCHS: We have resources to get it done. COMMISSIONER NANCE: Just let me finish. We can't have something that so onerous that we c. p't z th it and our vendor development suffers because of it. S, irao • .T- we can work together in that spirit. Because we have to be .f• -in ork on a day-to-day basis. If we can't, all the rest of the 1- '3 you can shoot it out the window, because the public is goinv =_ i ,, ensed because we're wasting their money. dr. CHAIRWOMAN HILLER: You're n n, to waste money and it can be done effectively and eff..•-ntl You know, I think now that we have a new purchasin dirt, 14 4 o is, you know, committed to, you know, improving the , .i ;s f know, getting things done right with the help of th f- : `: d - ieryone working in a cooperative spirit setting t r_ . F Fr d and allowing them -- or the policy, I should sa an _w Wem develop the procedure to be in conformance real 446 "-', 7, g9 g to have a negative effect. I mean, the Clerk has already 7:e rdbmmendations to staff which were very reasonable •" ould ' how for efficiencies to continue. Yes, si ` `' o 4 a issioner? CO "i1 ONER COYLE: I just have one question. And I think t is -e-ds to have the answer to this question in order to d e policy. Asp example, let's suppose we go to Home Depot and negotiate the p asing agreement. That gives us a good price for whatever it is we want to buy there. And a workman needs a tool and the workman goes there to buy it. We've satisfied the two problems of price and contract. Who makes a determination that that tool serves a valid public purpose before he purchases it? The Board of County Page 151 Packet Page-2869- 12/10/2013 17.J. November 12, 2013 Commissioners. So what he's got to do under your proposal is to get that approved by the Board of County Commissioners or we delegate that -- CHAIRWOMAN HILLER: No. COMMISSIONER COYLE: -- decision to the County ager. CHAIRWOMAN HILLER: No. You know how it's dq ? COMMISSIONER COYLE: Wait a minute, I have `` ''• ! 12/10/2013 17.J. November 12, 2013 And as I said, contract administration, definition of scope; emergency, definition of emergency; and that surplus will be brought back separately. The only remaining issue that we haven't addressed is lcai vendor preference. And I think we should have a separate dis sion on that to make sure that's properly being addressed and im. ed. And we do have to have that codified in order for it to be. . , lik;. we should bring that back as a separate agenda item and h. a.L .arate discussion, because there are alternatives. So just s ' - ‘ni at for another meeting. MS. PRICE: Did you want it to be a sep ' lIt'sf nance or -- CHAIRWOMAN HILLER: No, it s. • .: - of the purchasing ordinance and we'll just amend I'- asmg ordinance to include the local vendor preference a . e as . ove i 'after we have a discussion on the Board with resp-. , • t. pt. But we won't address that today, so just leave that , 1..., q 3.. 4.w it would be approved. MR. OCHS: Commissi rD No Id yl u enlighten me on the process that the Board wil 4, to„. clare what I believe to be a new requirement now, to ha -." u`- Clare a public purchase in advance of any purchase? I krcN 1- irk is required to determine that as part of his pre-audit befT di .r rsement, but we seem to now invent a new process to - in}" d load that -- CHAI ` a;O ' N HILLER: No, there's no -- MR. ., a : I don't see any reference in the statute to that C ,, v LO AN HILLER: Everything, every expenditure we -,4keta,Trit,ma er of law has to serve a valid public purpose. There's cap lay. M R. OCHS: Subject to the audit,1 of the Clerk, yes. CHAIRWOMAN HILLER: Wait a minute, it's not him determining that it has a valid public -- MR. OCHS: Yes, it is. CHAIRWOMAN HILLER: We are the first -- Page 153 Packet Page-2871- 12/10/2013 17.J. November 12, 2013 MR. OCHS: Through your budget, yes. CHAIRWOMAN HILLER: -- threshold determining whether something has a valid public purpose. He is second. And what he does is he tests through his pre-audit that it serves a valid pubic purpose. But that is determined by what we say and what we I}-&with respect to approval of that expenditure and then actually, yo what we're going to apply those funds to. So -- MR. BROCK: And may I add one additional thi *Arts have given me guidance as to how I make my determina ' . : • that is absent -- proof beyond a reasonable doubt. I fol !_ - our determination of public purpose. lit **CHAIRWOMAN HILLER: Right. a,,,' • : k. to give you an example, Leo, when we make expenditure-7!‘i . ple, for tourism, when we expend tourist dollars, we a , .,.ys , you know, this serves tourism. So we're defining that th • ►k. '' .urpose of the expenditure of those tourist dollars is valley : a' '`,. ism. And we don't have to sa .. i eves valid public purpose. Whenever Jeff, you know legal underwriting, he basically 4,.., says and the expenditu -- you know, it's like legally sufficient, serves ' id; `dub purpose. So satisfying ref i" rement is done by us every single time we are approv' g ontra. , every time we are approving a lease, every time we app . e -.' MR. r, ` : Yes, and now it will done another 10,000 times or howevt- ,, -: �� 't akes. ''‘'..A. Rv OMAN HILLER: No, it's not going to be done any di ' y -- ' w . OCHS: Yes, it is, ma'am. CHAIRWOMAN HILLER: No. MR. OCHS: Excuse me, it is. COMMISSIONER COYLE: It will. CHAIRWOMAN HILLER: No, I don't think, so. Page 154 Packet Page-2872- 12/10/2013 17.J. November 12, 2013 COMMISSIONER COYLE: And then let me raise a question. The guidance that has been given to the County Manager clearly says that the determination concerning the public purpose will be determined prior to submission of the invoice to the Clerk. To me that seems to be putting the horse before the cart - r the cart before the horse. We should be making that determinate - {^. re the expenditure is made. You can't have someone go ma,e' `� expenditure and then when you're getting ready to ma , "'A e. invoice bring it to the Board of County Commissio . • e1: "-y that it was -- it serves a valid public purpose. We sho . .,P • - at in advance. And if we do that in advance, it is going to b- u ly cumbersome. But there's no question about which .- 1 i ing to go. So you've got to do it the way the majority wi ► . t t you. MR. OCHS: Yes, sir. .. . CHAIRWOMAN HILLER: ay, that's the motion. And let's just keep it as simple as •a COMMISSIONER HE '� ' Is t re a second to the motion? CHAIRWOMAN HI r ;, don't know, I'm waiting. COMMISSIONE 1 1 G: Okay, would you accept a friendly amendm t:" * . COMMISSIONER `" LA: Why aren't you looking this way? CHAIR " ; • N HILLER: Because he's talking to me. Unless you want to ` MR. Z �� Madam Chair? CA ) vIAN HILLER: Do y ou want to second? 91 SIONER FIALA: No you -- C 't • IRWOMAN HILLER: No, he just said he wanted to amend it. COMMISSIONER HENNING: Yeah, here's my thought. I think there's a value to the P cards, but I think there could be a policy for the Board to consider on what the P cards are used for. I think there's a value of staff entering into agreements for contracts as long as Page 155 Packet Page-2873- 12/10/2013 17.J. November 12, 2013 there's a clear guidance in the policy. And those should be determined on what is being brought back with a cooperative effort between the County Attorney, County Manager's agency and the Clerk's Office. So that's my friendly amendment to your motion. CHAIRWOMAN HILLER: So for purposes of adopting\e ordinance, putting in there that, you know, that there has to • approval by the Board and a valid public purpose and th- . 9711k: o pp Y that that as to P cards, that you want -- you want to bas'ill a{r incorporate the procedure in the law -- COMMISSIONER HENNING: Correct. HILLER: -- for P card COMMISSIONER HENNING: Co t 1 at can be expended. Such as existing contracts, suc ": . 1 for staff, okay? Because we don't approve -- MR. BROCK: From myer - i -„ ou have an existing contract that's been approve. .y ` " • You can use your P cards, no problem. COMMISSIONER : Right, but we have not approved things like travel. MR. BROC , 4lis approved by statute. MR. OCHS: tra 1 -- per diems are approved by statute. " - P PP Y The proces-=b .tl�° hich .0 procure travel is not spelled out in the statute. CO L it °w ONER HENNING: So yeah, those things I think betwe- r and the County Manager can be done. Y` the same thing with smaller purchases. $50,000 and if we take a 1` t- at an average of$19,000 -- 19 -- I'm sorry, $16 million a year,"w1, that's a lot of purchases.we CHAIRWOMAN HILLER: 19 million. COMMISSIONER HENNING: Between the P card and the -- MR. OCHS: It's eight percent of your purchases. COMMISSIONER HENNING: Right, eight percent of the Page 156 Packet Page-2874- 12/10/2013 17.J. November 12, 2013 purchases. I think there's some room for some improvements there. And that's my friendly amendment. MR. BROCK: Commissioner, I'm of the opinion, you :'ve staff direction, you bid it and you award it based solely on price wt 'tit discretion, it's a ministerial act. All you have to do then is d.*r=' . 'wa e the public purpose. It's when you start interjecting thing o � ; .n price into it that cause -- for discretion with county sta E e . u create the problems that I'm having to deal with I . . Ia county staff this. CHAIRWOMAN HILLER: I don't -- I' ll ,. • , o make the amendment, I don't have a problem with i-7, n . , know why we need to strap Leo's hands with -- because r : ,- e basically saying is as long as what's used on the P car. --rve ,- vali• public purpose and as long as that expenditure is tit • by the Board, it's an okay lb method to purchase. , MR. BROCK: And he . p op -,c t`'e policy -- ° CHAIRWOMAN HI r ' d let him develop the procedure on how that end is achi- *on't think you necessarily want to put that procedure in (Q- e ou want to say okay, the only people t ha t ca n h av e P cars' for' is upper level management to make emeren urc ,ses, but otherwise everything has to go through pur*sin I mean, you know, you could incorporate somethin• 'k e that. Bat ; s ally think that if you set the broad parameter, you're ki • �''° enough -- you're setting enough of a control in place to al ,,, t `'�County Manager to develop the internal purchasing practices to core er the efficiency operation his o eration as well as ensuring that the g expenditure is done in a way that the Clerk will reimburse and that we haven't breached our fiduciary duty either. COMMISSIONER HENNING: Yeah, I think we're saying the same thing. Page 157 Amok Packet Page-2875- 12/10/2013 17.J. November 12, 2013 MR. BROCK: We can -- within the broad framework that she set out, okay, we can then work with county staff for them to establish the procedure by which they implement that, that we feel comfortable with. COMMISSIONER HENNING: Well, and I think the Bo needs to bless that MR. BROCK: And that's fine, but they can bring t t •1 ,R -W you in terms of the policy for the purchasing. The onl iii. 'm looking for -- k ` COMMISSIONER FIALA: Let's just ask g;'.- -' MR. BROCK: -- is for county staff-- B .,„I,. .� ounty Commissioners to make those two determ ,..ti.) COMMISSIONER FIALA: -- extra .. - . ..,use first of all, you never pay anything unless you aid; it • way. MR. BROCK: Oh, I do it all ,' ->._i COMMISSIONER FI • ' ,- it ':it before he pays? He audits it again after he pays. ► . seems like another step to audit before you spend anythingu e, oesn't pay it anyway until after he audits it It seems like F* ng through a long, long process when we already still ha e' ,, q r• 'tdures in place audited before and audited afterwards, t °• h- '•oesn't pay unless the audit comes out fine with him. ifiu on't ii< derstand why we're going through all of this stuff. MR. ;�•'��� K: You don't like my audits yet, do you? C.t- 'n'I.l -)) NER FIALA: No, that's fine with me. '`. IR! OMAN HILLER: We have a -- if I may, we have a lot oeop g Vwaiting and we're long overdue our 2:30. I mean, it's one hour "` and that. So I think -- COMMISSIONER NANCE: We have to take a break for the reporter. CHAIRWOMAN HILLER: We have to take a break for the court reporter, we've got people waiting, we really need to move on. Page 158 Packet Page-2876- 12/10/2013 17.J. November 12, 2013 Amok But this is a very serious issue and one that needs to be addressed. So unfortunately the extra time was necessary. How would you like to modify that amendment again? I mean, what's the amendment again? COMMISSIONER HENNING: The amendment is to dirV staff to work with the Clerk agency, with the assistance of the Co Attorney to bring back a purchasing ordinance and provide policies under what can be purchased under a P card -- COMMISSIONER NANCE: Procedures. INNIJ CHAIRWOMAN HILLER: The procedur- - ' cards. COMMISSIONER HENNING: Correc And set a threshold for in what staff = i eshold, I should say -- in what staff can enter into an agree ' 4•urchase. I think that $50,000 is -- it was a time when as . opted, Commissioner, when we were making large puurch •t of purchases. We had what they call vufers (sic) w-,• ei, •''a p c money that staff created these things that, you know, r. &led. to But anyways, I don't ' `:. t kW re's a need for it right now CHAIRWOMAN : Okay. COMMISSI vIzi lir ING: And I feel confident in the County Mana.er's f t .?ke a look at the expenditures and find out what we c• t ,-*- • get est value. CHAI `xy 0 A N HILLER: Jeff, can I ask a quick question? Can we have a„%anket ordinance that addresses the general policy like I state u1 we separately have purchasing rules which address th e like what Commissioner Hiller -- I mean Commissioner He'i in' is drilling down to? I'm like NOMMISSIONER HENNING: I'm not going to adopt her. COMMISSIONER FIALA: Everybody starts with age, right? Could that be done so that -- MR. KLATZKOW: I set up the purchasing coordinates -- CHAIRWOMAN HILLER: Right. Page 159 Packet Page-2877- 12/10/2013 17.J. November 12, 2013 MR. KLATZKOW: -- to specifically provide for a purchasing manual. CHAIRWOMAN HILLER: Okay, perfect. MR. KLATZKOW: There's no reason why this can't b art of your purchasing manual. CHAIRWOMAN HILLER: So let's do that, if you don'llili Commissioner Henning. Because what I would like to d. i-- `- •. Ft eo the flexibility. Because let's say they sit down, they a f ies of procedures today, they refine the procedures, they G s ging those sc procedures. And -- you know what I'm saying? COMMISSIONER HENNING: Right. CHAIRWOMAN HILLER: Okay. '= b.u4s, Nhe recommendation -- I will adopt the amend * I •e by Commissioner Henning modifying it . .brines_'ng back a -- you know, the recommended procedures with ., - to these purchases under 50,000 and the P cards whic w' - ".i w' e in the purchasing manual and will serve as guidance fo se nsactions will be executed. MR. KLATZKOW: R,,, ► a1 u1d recommend that the purchasing manual co 'illks . . along with the purchasing ordinance at the same time, Iritul 're going to have to mesh. CHAIRWO 1 ER: Yeah. And that's fine. So we'll P ut the broad policyz policy n the°1 rdinance and have the details in the purchasingiiu. nd direct staff to bring both back say the first meeting - ,-41 ,the second meeting in January? CC` ',E " INER HENNING: I don't know if I'd give it a time t°,--k. 11. OCHS: Yeah, we need -- .' AIRWOMAN HILLER: Well, we have to, because the Clerk is not going to pay if we don't adopt the ordinance. MS. PRICE: I would hope that so long as we're working and moving forward that the Clerk would give us some leeway. CHAIRWOMAN HILLER: We have to adopt the ordinance. I Page 160 Packet Page-2878- 12/10/2013 17.J. November 12, 2013 Amok mean, we haven't -- MR. OCHS: We've been paying it for 22 years this way. I don't know why we have to change it -- CHAIRWOMAN HILLER: Well, he said he's not goin to pay. MR. OCHS: Why now? MR. BROCK: You adopt the ordinance and we'll wor liv -- CHAIRWOMAN HILLER: The details. Itt MR. BROCK: -- details. �� MR. OCHS: There's no ordinance on the floo Ith, COMMISSIONER HENNING: No, later • r: , on when it comes back. - iii COMMISSIONER COYLE: Yeah, , S • , .ens between now and then? COMMISSIONER HENNING: othi . Everything business as usual. , CHAIRWOMAN HIL Ning -- MR. BROCK: I'm han• : r ere'now. I don't know that a little more is going to kill CHAIRWOMAN - N , : Bring the ordinance back to the December meeti 4 Abe modifications to the ordinance, you know, where the di en `y are basically being addressed, bring that back. And erring ` -e manual back after. Because the manual does not ha o cane concurrent with the ordinance, given that the manual c. q.- I.e veloped after the fact once the ordinance is establi, ,.. : , ause the manual has to conform to the ordinance, and ti µ_" a nceis broad enough. ROCK: Let me say this with the following caveat: If I see i ation of attempts to go out there and enter into all these contracts from county staff, you know, all the -- yeah, I mean, we'll put a stop to it. And that's understood. But, you know, business as usual, let's move on. Let's get this solved so that we all feel comfortable with it so that we all are able to Page 161 Packet Page-2879- 12/10/2013 17.J. November 12, 2013 work and get our job done. I'm not trying to, you know, bring the county to its knees. That's not my objective. I'm simply trying to clean up what I perceive to be a mess. COMMISSIONER FIALA: Are you going to pay the bil . now? MR. BROOK: Yes. CHAIRWOMAN HILLER: Let's bring the ordinan a . � g . modified based on the four issues that we discussed to MR. OCHS: Hold on, hold on. Because I -- Commissioner, I'm sorry, this is important. I di... ar Commissioner Henning second -- CHAIRWOMAN HILLER: I'm wa7 r.m }'sJ. L . MR. OCHS: -- the same motion that : r e, particularly as it relates to small purchases. He said h antsy lower threshold, if I understood him. COMMISSIONER HE I I t. COMMISSIONER NAP 'fir .- That s a suggestion. CHAIRWOMAN HI - L.' So you can work that out as part of the manual. Because a tal MR. OCHS. r.., '• fundamental difference between what Commissioner He g sZiti and the Clerk has been saying since the beginning r t .7--'disc ion. CHAI k , ' 0 • N HILLER: Commissioner Henning is now saying th , - '� nts discretionary spending at a lower threshold. He just sa t' ' 41 A ' BLOCK: Commissioners, I sat in a meeting with county sta. l a 6i-e or so ago and we had a discussion. And the discussion went -c- ething like this: You know, there are imprest funds all over this county. I see absolutely no authorization in this statute for imprest funds. But it has worked everywhere. I see absolutely no authorization for credit cards, but it's worked all over. We can continue that within the confines. You get with my staff and work out Page 162 Packet Page-2880- 12/10/2013 17.J. November 12, 2013 Oft something that we can all deal with. And we have not heard word one. We're willing to work. They are just -- I don't know what it is, but I mean, we want to work with them, but we want the con ols in place that gives you the ability to approve the purchases. Tha oesn't mean that you have to approve every one of them, you can d ' i multitude of ways and I will work with county staff to ac o , k ' that CHAIRWOMAN HILLER: Again, the purpo ' ° 4" : ordinance is to set the policy, and the procedures can corn- ; — 1 manual to follow through with that ilL COMMISSIONER HENNING: Ye: `, u- to correct the threshold, it's not a blanket, it's to set a poi at can be done under a smaller threshold. It's not a btl. • et proval. CHAIRWOMAN HILLER: 1'e •od. No, I understand. So can we -- do you w. t . ; •1 cf the ordinance or do you want that as part of the manu MR. 00HS: Commi '.,. - - COMMISSIONE: 1G: You know, the format of the two documents, 1 , t s my attorney that works with that all the time CHA R :-# ANHILLER: Doesn't it make more sense to have it as part of` ti m ` al so that as time changes we don't have to amend the ordin. _-, ich is a much more difficult process? M ;*,TLKOW: My view is like -- " s ,I . O S: I'm sorry, but -- M..% LATZKOW: -- you have a GMP and an LDC. MISSIONER FIALA: Exactly. MR. KLATZKOW: Okay? And that your purchasing ordinance should be like the GMP -- CHAIRWOMAN HILLER: Correct. MR. KLATZKOW: -- there's the general rules, and the minutia Page 163 Packet Page-2881- 12/10/2013 17.J. November 12, 2013 goes in the purchasing manual. CHAIRWOMAN HILLER: Right. MR. KLATZKOW: In my view. CHAIRWOMAN HILLER: So in terms of Commissio er Henning's position, where would his concern about the P card the purchasing threshold practices be? Would that be in the ord. or in the manual? MR. KLATZKOW: It could go either place. CHAIRWOMAN HILLER: What would be -- COMMISSIONER HENNING: It would • MR. BROCK: Can I make a suggestio 91- 740 tli:COMMISSIONER HENNING: It ' 3 • erence within the ordinance. MR. BROCK: To give county s-•. th-' .bility to work with changing circumstances -- CHAIRWOMAN HIL • :;,• i e e -- RT"`'' • 4, . ' ve t'o conversations going on. THE COURT REPO , g g MR. BROCK: I'm s cu', ;> To give coun st. x - � ity to deal with changing circumstances, if • tt t '; an ordinance, there is time requirements, a dve 7. n g -q uirements and all of those other thing s. CHA a> "4 A ILLER: Right. MR. B .4 C "" If you just put it in a policy, it's a much easier change. direct that that policy be brought to you, but you don't , 5 -3 through those formal statutory requirements of ry re q -`-' P ' an ordinance. -4y C A RWOMAN HILLER: Right. And that's why the actual proce.r. "`es should be developed by the County Manager in the purchasing manual. MR. KLATZKOW: Correct. Approved by the Board. COMMISSIONER FIALA: County Manager is trying to show us something right here. Maybe you want to see it. Page 164 Packet Page-2882- 12/10/2013 17.J. November 12, 2013 MR. OCHS: This is out of Florida Statute. I'm drawing your attention to 125-.74(I). These are county administrator powers and duties. Develop, install and maintain centralized budgeting personnel, legal and purchasing procedures. So I would hope I would be allowed to carry out that responsibility. CHAIRWOMAN HILLER: Absolutely. And agai for example, it says develop, install and maintain centraliz.,i • • eting. Well, we adopt the budget. MR. OCHS: Yes, you do. a :y CHAIRWOMAN HILLER: So to the s.*r tzt that you put it together, we adopt it And to the same ex f, can you help -- does that mean that we should not even ',, • ed in the purchasing procedures? MR. KLATZKOW: No, no, u. r analogy with the budgeting was spot on You t' 1 • • •er developments the budget. It then goes through • and '`ou approve it He will develop the personnel poi . •urchasing policies and it will come back to you MR. OCHS. i' �.44._ procedures, Commissioners. I don't develop policy.. -Y CHAR • ILLER: Right, we'll develop the policy as we are right'' e w ough the purchasing ordinance. You develop the procedure:. • ,,ou bring it back. J e • • approve those procedures? 1-6 - • TZKOW: I think you should. C ' RWOMAN HILLER: Okay. Okay. KLATZKOW: I mean, you have an administrative code too, you know, ordinance that says that all this stuff goes to you for approval. I don't know what the difference is. CHAIRWOMAN HILLER: Okay. Got it. MR. OCHS: That's -- Page 165 Ank Packet Page-2883- 12/10/2013 17.J. November 12, 2013 CHAIRWOMAN HILLER: Is that acceptable -- MR. OCHS: -- specific. CHAIRWOMAN HILLER: -- Commissioner Henning? COMMISSIONER HENNING: (Nods head affirmativ .) CHAIRWOMAN HILLER: All right, so we have a mot' and a second on the table. Is there any further discussion? COMMISSIONER FIALA: Yeah, just -- CHAIRWOMAN HILLER: Go ahead. COMMISSIONER FIALA: -- let me say, ommissioner Henning's suggestion then a friendly way to • ;, it, was that the one that we are now adopting'? CHAIRWOMAN HILLER: Yes. COMMISSIONER FIALA: Th 's be so much talk I don't even know anymore. CHAIRWOMAN HIL o nt me to repeat the motion? COMMISSIONER F o, that's all right. Just I wanted to know what -- � COMMISSI( L4 1 CE: Get it out of the transcript. CHAIRWO i ER: Don't make me laugh. Oh, my God. MS. Pl Commissioners, if I might -- CHAI O N HILLER: Yes. MS `' --just for a moment. I'm not sure if I heard correctr1, = Clerk said that staff has been unwilling to move and taad eased controls. I just want to make sure that that wasn't michar cterized. We actually talked about reducing the thresholds if we th t that we could get a better handle on things. We laid out a list of about six or seven different improved controls that we think are important to get a better handle on such things as the P cards and some of the other combining purchases to try -- you know, to try and put them together. Page 166 Packet Page-2884- 12/10/2013 17.J. November 12, 2013 Aiok I just want to make sure that there's no misunderstanding that there hasn't been a good cooperative working relationship between the two parties. MR. BROCK: If anybody could -- is of the opinion tha ..I said that this has not been a collaborative effort, let me clear that ,. We have worked together. The only comment was, you know, . - ere going through with the P cards, you know, I tried to get •,.e9% mii 4 r with our staff to figure out a way that would work for t we didn't get any feedback with regard to that That's t•.``°3 hing that I have any question about was, you know, I wish f, t d worked with us after the meeting. But other than that, I w. ,rn.• ` ,• '; and the efforts that the purchasing and Leo's office did $ *4 4 ith us. CHAIRWOMAN HILLER: Thank y ing that So -- and then bring -- so the mo .'.*n is ,n the table , we have a second to be brought back at the I), . °- meeting for approval, and then Leo can work on the pro - , uent to that, once that ordinance has been adopted. e a MR. KLATZKOW: ' , - u ant me to advertise it CHAIRWOMAN na Yes, absolutely. So we have '° on at. a second. MR. OCHS: 'd die What are we advertising? CO L .I ON " HENNING: The ordinance. CHAI ' :; 0 N A N HILLER: The ordinance. MR. 0.. k. : Because normally an ordinance is a two-step proces '° A R ,. OMAN HILLER: Right, we're going to -- MI . d CHS: It comes to the Board on the agenda -- AIRWOMAN HILLER: Right. MR. OCHS: -- for approval and then it gets advertised at the second scheduled hearing for the actual adoption. Is that what we're following here as our standard process? CHAIRWOMAN HILLER: What we're -- Page 167 Packet Page-2885- 12/10/2013 17.J. November 12, 2013 COMMISSIONER HENNING: It's on our agenda today. CHAIRWOMAN HILLER: Right. And it's going to be brought back. The advertised format will be brought back in December with the first advertising in December, and then the second advert' ing at the first meeting in January. MR. KLATZKOW: No, no, no, no. One advertising. COMMISSIONER FIALA: I'm sorry? ' Vki MR. KLATZKOW: We do one advertising. Da Y.. ` it -- my question is -- a CHAIRWOMAN HILLER: Oh, I didn't -- r, ,s . • t you did two. MR. KLATZKOW: No, City ofNa•les ° 1,,af,), we do one CHAIRWOMAN HILLER: Okay, , .1111i MR. KLATZKOW: Do you want me , ` - ise? I mean, I've got the title. It's in your packet. Tha ' he t' e. CHAIRWOMAN HILLER: ' L A MR. KLATZKOW: A .. 1• ' 414-, r- t of the ordinance you can change on the floor. �» `� So the question I have - se the item was to ask you to direct whether or not y•;. Y, ° -.s to advertise this CHAIRWO 4►:,.l L R: Yeah. I mean, the changes are like I said, you agree on tra dministration; you're adding the definition of scope; y � ee o mergency; you're adding the definition of exigent; o � ell 'natin surplus; you're eliminating contracts under der 50; you're 4 ating P card; you're not including the local vendor becau a a . . e that a modification in the future; and you're adding • . ., 04,;.�Y r that basically provides it has to be approved by the Board an• 7, o' rd has to find a valid legal purpose. . BROCK: You're not suggesting that they have to not use P cards. CHAIRWOMAN HILLER: No, that's -- for the 25th time, I'm saying that how you make a purchase will be determined in the purchasing manual by staff. If they want to use P cards, they can use Page 168 Packet Page-2886- 12/10/2013 17.J. November 12, 2013 Alik P cards. If they want to not use P cards, they cannot use P cards. If they want to use half the P cards for only certain purchases, that's up to Leo. And whatever he comes up with as his procedure he will bring back to the Board for our ratification after he develops the maual. So he can work with you on that process. All we're doing in the ordinance is setting the global po conform with the law and then the details will be in the ma :°' developed by Leo with your support ratified by us in a _ step that has nothing to do with the ordinance down the _ er than to conform with the objective of the ordinance. MR. BROCK: I'm a happy camper. :-° CHAIRWOMAN HILLER: Is that . ,, - • b!--MR. BROCK: Yes, ma'am. y CHAIRWOMAN HILLER: Jefklo MR. KLATZKOW: I'll brin k ordinance. These two are not going to agree on it, but ith CHAIRWOMAN HILL "` .t the rdinance will be really simple. Again, it's going t^ , :to all these -- MR. KLATZKO • A ; "ing you right now, you're not going to get those two t. a=.e,i, • t. MR. OCHS: .. 4 -.da hair, my only question is did the second agree to th•. • f wh you just read where you're eliminating all purchases b;,,,-w '.5Q,000? CHW 1 MAN HILLER: Yeah, because you're going to come back at,.. • vop a policy on that Or a procedure on that `" k 1° . KLATZKOW: No, no, no, no We're not eliminating purcases under 50,000. I think what I heard was that you're going to devela procedure for purchase on your P cards. CHAIRWOMAN HILLER: And for purchases under 50,000. COMMISSIONER HENNING: Yes. With a lower threshold. CHAIRWOMAN HILLER: But that's up to him in his procedures. There doesn't have to be -- Page 169 Packet Page-2887- 12/10/2013 17.J. November 12, 2013 MR. OCHS: Will the lower threshold -- CHAIRWOMAN HILLER: -- any ordinance. MR. OCHS: -- allow staff to make procurements under your new policy under that lower threshold. N. COMMISSIONER HENNING: Right. MR. BROCK: With approval of the Board. imi\ MR. OCHS: That's not what he said. COMMISSIONER HENNING: Right. I mean, tr...a -- the specific policy, yes. And it's -- but the individual p . no As long as we have a policy of what, when and ho Aii`'` CHAIRWOMAN HILLER: Right. COMMISSIONER HENNING: -- t`> • t COMMISSIONER NANCE: Which < going to develop at your discretion. CHAIRWOMAN HILLER: itii 1 ou an example -- MR. OCHS: Yes, I undrs • ,,issioners. I don't believe that's the intent of your Cler ' CHAIRWOMAN HI .. ell, we will work with him so that he understands that it i Like to give • . x ,� ple, purchases for repairs and maintenances unde.7,1,0# i can be made at the following vendors for the followi , • lic p u .ose, and you list out, you know, to repair the building, da Y da, owever you want to define it MR. L-t, b. K: I have no problem. Cr' i%aA '•NER HENNING: I'll help you -I;_, - .kw.. IR' OMAN HILLER: I'll help you too. We'll all help you, Le MISSIONER HENNING: We're here to help. CHAIRWOMAN HILLER: We're the government and we're here to help. COMMISSIONER HENNING: Aye. CHAIRWOMAN HILLER: All right. So there's a motion, Page 170 Packet Page-2888- 12/10/2013 17.J. November 12, 2013 there's a second. Jeff will bring back the ordinance, the advertised ordinance, at the December meeting for approval. MR. KLATZKOW: Yes, ma'am. CHAIRWOMAN HILLER: Okay. MR. BROCK: Thank you. MR. KLATZKOW: You still need to vote. °R COMMISSIONER NANCE: Let's vote. CHAIRWOMAN HILLER: Commissioner Coy!;7;° °0, u want to speak? COMMISSIONER COYLE: No, I'm only ,•t o tell you that I'm going to vote no, because I don't have the ' • what is going to happen here and I don't believe a , • • 11 :'n this room does either. But go ahead and do it, and I 7 • : it turns out okay. CHAIRWOMAN HILLER: So • I. COMMISSIONER FIALA ving the same problem. I just didn't -- you know, it's b ye-n •. very time everyone adds, they add something different : d& `don't -wen know where we're going anymore. So it was M. me to vote yes when I'm not sure. When Commissio' - e mg said his thing before that was fine. Then it seemed t• ` ( t ; = it seemed to change. I don't know where we are anym• el' r. MS. P Anddmy concern is that if you adopt it in December before we'v r __ ri * those policies, you've made some bro -- you ��� know, yo - Nig to have a very broad purchasing ordinance. But until I havin •pportunity to work with the County Manager to get t s" `• e•tires in place, I've got a policy that I can't act on. C • RWOMAN HILLER: That's not true. Because once it's _ adop'r = ' ou can be working -- you know what the policy is now, as we had our discussion here. Once that is adopted, you develop your procedures accordingly. I mean, you know what the law requires you to do. COMMISSIONER FIALA: That sounds like the Obamacare Page 171 Packet Page-2889- 12/10/2013 17.J. November 12, 2013 thing, we'll find out what it is after we vote on it. COMMISSIONER COYLE: That's right. CHAIRWOMAN HILLER: It's not. COMMISSIONER NANCE: Just what Commissioner oyle just got done saying. CHAIRWOMAN HILLER: No, that's not true, that's n `" And the difference here is, it's the role of the Board of C•. „, Commissioners to set policy. It's the role of staff to de i."± e ^e procedures to implement that policy once it's been • ,'': . .y the Board. This is no different than all other policy " ,•n we give. There is no difference. COMMISSIONER COYLE: Could • s r e other -- CHAIRWOMAN HILLER: Yeah. COMMISSIONER COYLE: -- ' of vice? ou're going to advertise an ordinance without�ev- - ,•o ,.'ng what it is we're going to be changing and how we're gel • • s. • ging it And as the County Attorney says, well, you can Litt 4, , 4 ge i ` uring the meeting. Can you imagine? If you thi misting has been confusing, just wait 'til you have that meeti 0... CHAIRWO ;►• t L :- R: Can I make it really -- COMMISSIO R YLE: The wa ro er to do this, and I'll p P Y only say it c' s to ` :t y to the County Manager take a look at your ordinance -- tavq< a look at your purchasing policies and procedures and see w a'' " ,,. ', , can do to modify them to deal with the problems that th- -ems to have If you're able to do that, give us an a j gym` i t o its impact on your organization and we will then make a deSiorta to what we do and we will advertise for an ordinance to ire t make o change and it will be concurrent with the purchasing manual. That is the proper way to proceed with this stuff. But we've already got a motion on the floor, so let's vote on it. CHAIRWOMAN HILLER: All right, we have a motion on the floor and we have a second. Page 172 Packet Page-2890- 12/10/2013 17.J. November 12, 2013 There being no further discussion, all in favor. COMMISSIONER HENNING: Aye. CHAIRWOMAN HILLER: Aye. COMMISSIONER NANCE: Aye. CHAIRWOMAN HILLER: Any opposed? COMMISSIONER COYLE: Aye. it CHAIRWOMAN HILLER: Commissioner Fiala? COMMISSIONER FIALA: Oh, I voted aye with 'ssioner Coyle. CHAIRWOMAN HILLER: Nay? Okay. So motion carries 3-2 with Commission- , ,r,• ?1 b Commissioner Coyle dissenting. ` �.. COMMISSIONER FIALA: And bef• `` 'j•=- ' -ave, I'm supposed to be leaving on a trip at 2:30, I don't 'nk ade i , and driving up to represent Collier County at the Fl•, ':elk , ociation of Counties. I'm on the board of directors for e V., s •ciation of Counties. But now after all of this, can I pl r app oval to use the P card when I get there? COMMISSIONS�4.... In February. COMMISSI t ; P sli . A: No, right now today. CO + MMISSIO ``R ' YLE: I don't think that serves a valid public p • ;se wa, COM F' SI R FIALA: They didn't want it to reduce the pay. "'` Madam chair, the court reporter needs a break. ItmtcIR i OMAN HILLER: We need a take a break for the court re. :, e a d then after that we have to go to the 2:30. . OCHS: How long, Madam Chair, 10 minutes? CHAIRWOMAN HILLER: What does the court reporter need? THE COURT REPORTER: Just a bit longer, please? CHAIRWOMAN HILLER: Yeah, can we -- 15 minutes, please. MR. OCHS: Thank you. Page 173 Packet Page-2891- 12/10/2013 17.J. November 12, 2013 CHAIRWOMAN HILLER: Thank you. (Recess) MR. OCHS: Madam Chair, you have a live mic. Commissioner Fiala -- you know, we have people waiti• _, Commissioner Fiala, for a time certain. But I understand you . t to listen to the travel issue, the agenda item that relates to trave °'M, - COMMISSIONER FIALA: Yeah, but after the 2:31 t ; certain. CHAIRWOMAN HILLER: All right. So let' d with the 2:30 time certain. COMMISSIONER FIALA: Thank ou _ ; c MR. OCHS: Madam Chair, is there :b and that that you want to reprioritize? ` CHAIRWOMAN HILLER: Ye e h we to '`We have -- Mr. Yovanovich is here representing w 'R 1 •°,,•ject? Could you come to"14 the podium? MR. YOVANOVICH ; . ,.'b, o o he comp. plan amendments: One's for N4 ` -erve and one is for Olde Florida. CHAIRWOMAN -4. , 6 ' : Can you tell me the agenda items? MR. YOVA ,, ft,, :, believe they're Item 9, right? MR. OCHS: A.7!9. a'am. COM 'II' 0-1\1 ". HENNING: Well, let's deal with the Animal Control Ors ° c- •efore that. CH • = VCOMAN HILLER: We have -- hang on a second. 9.A and wh - 1,r Y• ANOVICH: They're both under 9.A. ,C 'RWOMAN HILLER: Oh, both under 9.A? t OCHS: The Animal Control Ordinance is 9.C. CHAIRWOMAN HILLER: And -- COMMISSIONER FIALA: Comp. plan amendments shouldn't be a problem anyway. CHAIRWOMAN HILLER: No, I don't see either one of those as Page 174 Packet Page-2892- 12/10/2013 17.J. November 12, 2013 Ask an issue. I think what we need to do, because we made some commitment, so I think we have to go from Isles of Capri to 9.A to 9.C. And Commissioner Fiala, what was the one you wante o hear? COMMISSIONER FIALA: 12.B -- wait a minute. Now, hat 1:::). was it? Was it 12.B? I had taken it off consent. MR. OCHS: Yes, ma'am, it's 12.B. COMMISSIONER FIALA: Right. CHAIRWOMAN HILLER: Okay. So we'll g. hear the Isles of Capri, then 9.A, 9.0 and 12.B. N COMMISSIONER FIALA: Thank you CHAIRWOMAN HILLER: Leo, ca o f e,:x orward the next agenda item, which is the 2:30 time certain \, Item #11 C : N, RESULTS OF A PUBLIC O1°A-. I1 SU EY REGARDING PROVISION OF FIRE S • ' ':Or IN THE ISLES OF CAPRI FIRE DISTRICT AND PRO ,; , `� _ ` DIRECTION DEEMED APPROPRIATE t �r CAPRI TO CONTINUE WORKING WITH ENFD; TH -C `: THE COUNTY ACCEPTS THE SURVEY " TS, 0 BRING BACK THE MANAGEMENT AGREEM I ' A FUTURE BOARD MEETING, AND DIRECTL E BCC CHAIRWOMAN TO WRITE THE STATE DELE t - APPROVED ' M .. d CHS: Yes, ma'am, thank you It's Item 11.0 on your agendtommissioners. This is a recommendation to accept the results of a public opinion survey regarding provision of fire services in the Isles of Capri Fire District and provide any direction deemed appropriate. Ms. Price will present. Page 175 AANNK Packet Page-2893- 12/10/2013 17.J. • • 'N A P L ES D Al LY NEWS e Wednesday,November 27,'2013.R 23D NOTICE OF MEETING NOTICE OF MEETING NOTICE OF INTENT TO CONSIDER AN ORDINANCE Notice is hereby given that on December 10, 2013 in the Boardroom, 3rd Floor, Administration Building, Collier County Government Center, 3299 East Tamiami. Trail, Naples, Florida, the Board of County Commissioners will consider the enactment of a County Ordinance. The meeting will commence at 9:00 A.M. The title of the proposed Ordinance is as follows: AN ORDINANCE REPEALING ORDINANCE 87-25 AS AMENDED,WHICH ORDINANCE ESTABLISHED THE COLLIER COUNTY PURCHASING DEPARTMENT AND ADOPTED A PURCHASING POLICY, AND REPLACING IT WITH THIS NEW.ORDINANCE, TO BE ORDINANCE KNOWN PURPOSE AND APPLICABILITY;RPROVIDES WHICH ORDEFINITIONS; ESTABLISHES AND PURCHASING DIRECTOR F PROVIDES OR IASPURCHASING MANUAL;PROM ES FOR SMALL PURCHASES UNDER$3000,FOR PURCHASES EXCEEDING$3000,BUT UNDER $50,000, AND FOR PURCHASES OVER$50,000; PROVIDES FOR A COMPETITIVE BID PROCESS, THE PROCUREMENT OF PROFESSIONAL SERVICES, COMPETITIVE PROPOSALS, AND PROCUREMENT OF DESIGN-BUILD CONTRACTS; ESTABLISHES POUCIES FOR SMALL AND DISADVANTAGED MINORITY AND WOMEN BUSINESS ENTERPRISES AND FOR PREFERENCE TO LOCAL BUSINESSES; PROVIDES FOR PAYMENT OF INVOICES AND ADVANCE PAYMENTS FOR GOODS AND SERVICES; PROVIDES FOR PROCUREMENTS BASED ON STANDARDIZATION, COOPERATIVE PURCHASING ORGANIZATIONS AND GOVERNMENT CONTRACTS; SETS FORTH A PROCEDURE FOR CONTRACT ADMINISTRATION AND FOR BONDS; PROHIBITS PROCEDURE Z FOR BID PROTESTS AND SUBDIVIDING CON(TRACT PURCHASES;PROVIDES FOR PURCHASES DURING EXIGENT CIRCUMSTANCES, EMERGENCIES AND BOARD RECESS PERIODS; PROVIDES FOR INSPECTING AND TESTING; PROVIDES FOR CONFLIICT OF PROPERTY;INTERESTS;PROVIDES. PURCHASING ETS FORTH A PROCEDURECFOR THE DEB RMENT AND SUSPENSION OF VENDORS; AUTHORIZES THE BOARD TO WAIVE THESE PROVI- SIONS WHEN AND LASTLY PROVIDES FOR CONFLICT AND SEVERABIUTY INCLUSIONRINTOITHE CODE OF LAWS AND ORDINANCES,AND AN EFFECTIVE DATE., A copy of the proposed Ordinance is on file with the Clerk to the Board and is available for inspection. All interested parties are invited to attend and be heard. • • NOTE: All persons wishing to speak on any agenda item must register with the• County administrator prior to presentation of the agenda item to be addressed. Individual speakers will be limited to 3 minutes on any item. The selection of an individual to speak on behalf of an organization or group is encouraged. If recognized by the Chairman, a spokesperson for a group or organization may be allotted 10 minutes to speak on an item. Persons wishing to have written or graphic materials included in the Board agenda packets must submit said material a.minimum of 3 weeks prior to the respective public hearing. In any case, written materials intended to be considered by the Board shall be submitted to the appropriate County staff a minimum of seven days prior to the public hearing. All material used in presentations before the Board will become a permanent part of the record. Any person who decides to appeal a decision of the Board will need a record of the• proceedings pertaining thereto and therefore, may need to ensure that a verbatim • record of the proceedings is made, which record includes the testimony and • evidence upon which the appeal is based. If you are•a person with a disability who needs any accommodation in order to participate in this proceeding, you are entitled, at no cost to you to the provision of certain assistance. Please contact the. Collier County Facilities Management Department, located at 3335 Tamiami Trail East, Suite 101, Naples; FL 34112-5356, (239) 252-8380, at least two days prior to the meeting. Assisted listening devices for the hearing impaired are available in the Board of County Commissioners Office. BOARD OF COUNTY COMMISSIONERS • COLDER COUNTY,FLORIDA GEORGIA A.HILLER,ESQ.,CHAIRWOMAN DWIGHT E.BROCK,CLERK By: Martha Vergara,Deputy Clerk (SEAL) No.2008215 November 27 2013 Packet Page-2894-