Agenda 09/22/2020 Item #16E12 (Advertise an Ordinance amending the Procurement Ord.)09/22/2020
EXECUTIVE SUMMARY
Recommendation to authorize the County Attorney to advertise an ordinance amending
Procurement Ordinance No. 2013-69, as amended, to incorporate references pertaining to the
County's Direct Materials Purchase cost -savings program.
OBJECTIVE: To authorize the County Attorney to advertise an amendment to Ordinance No. 2013-69,
as amended, commonly known as the Collier County Procurement Ordinance.
CONSIDERATIONS: On December 10, 2013, the Board adopted Ordinance No. 2013-69, which was
subsequently amended through the adoption of Ordinance No. 2015-37, Ordinance No. 2015-51,
Ordinance No. 2016-11, Ordinance No. 2016-19, and Ordinance No. 2018-38.
Staff is now seeking Board authorization to advertise an amendment to the Procurement Ordinance to
expressly adopt a Direct Materials Purchase Program, to formally incorporate a cost savings measure in
the procurement of goods and materials on County projects through the sales tax exemption savings. This
approach is considered a procurement best practice implementation. Staff has informally applied the
sales tax exemption in FY19 and FY20 with a total costs savings of approximately $953,036. The
proposed amendment seeks to adopt the following revisions:
SECTION THREE: Applicability and Approved Thresholds.
5. The Board of County Commissioners encourages the implementation of cost savings measures,
processes, and procedures as part of its various adopted procurement methods including but not limited to
Direct Material Purchase (DMP), P-Card purchases, and bulk purchases as may be in the best interest of
the County. In furtherance of implementing cost saving measures, such as Direct Material Purchases and
the Board of County Commissioner's other adopted methods of procurement, the Board delegates to the
Coun , Manager or his designee, the authority to manage and administer the procedures, processes and
measures necessary to maximize the purchasing value of public funds expended in the procurement of
materials.
SECTION FOUR: Definitions.
Direct Material Purchase is a cost savings measure to achieve sales tax savings through the Count,
sales tax exemption by purchasing materials directly with a supplier or vendor. Other savings may be
achieved in the Direct Materials Purchase process through the use of Purchasing Cards, rebates,
discounts, and other cost savings measures.
SECTION SIX: Duties of Procurement Services Division.
7. Tax Exemption: Procuring items for the County to exercise its tax exemption status when
eligible, to include:
a. Establishing and administering of a Direct Materials Purchasing Program that includes
processes and procedures to encourage implementation of such savings programs and the
gpplication of such related cost savings measures where it is in the best interest of the
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County.
b. Developing and implementing other tax saving and cost saving_ opportunities and means
related to purchasing and procurement.
SECTION EIGHT: Exemptions from Competitive Process.
13. Direct purchase orders issued when it is in the best interest of Collier County. Collier
County may make direct purchases of goods and services when the County can procure these items at a
lower cost and/or realize a tax or delivery savings. Direct Material Purchase Orders derived out of Direct
Material Purchases and/or other cost savings measures may be administered through contracts procured
through Requests for Quote RFQ), Invitation to Bid (ITB), Construction Invitation to Bid (ITB), Request
for Proposals (RFP), Invitation for Qualifications (IFQ), Construction Manager at Risk (CMAR , Design
Build, Progressive Design Build, and Invitation to Negotiate ITN, as mabpplicable and or available.
SECTION SIXTEEN: Payment of Invoices.
Agencies under the purview of the Board of County Commissioners shall be in
compliance with F.S. § 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:
d. Direct Material Purchases.
Staff recommends that the Board authorize the County Attorney to advertise the attached proposed
Amendment, which incorporates the above identified revisions, to promote cost -savings in the
procurement of materials on County projects and increase the efficiency and ease of administration in
implementing such purchases.
FISCAL IMPACT: The only negative fiscal impact will be the expense in advertising the amendment
to the Ordinance. The County will see a significant savings as the program continues to expand through
the agency during this period of extensive capital construction.
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with
this action.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority
vote for Board approval. -SRT
RECOMMENDATION: To authorize the County Attorney to advertise an amendment to Ordinance
No. 2013-69, as amended, commonly known as the Collier County Procurement Ordinance and direct
staff to bring the amended ordinance back for the Board's consideration at a future meeting. (See Copy
of proposed Ordinance, attached)
Prepared by: Sandra Herrera, Director, Procurement Services Division
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ATTACHMENT(S)
1. Ordinance Amending Procurement Ordinance No. 2013-69 (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.12
Doe ID: 13472
Item Summary: Recommendation to authorize the County Attorney to advertise an ordinance
amending Procurement Ordinance No. 2013-69, as amended, to incorporate references pertaining to the
County's Direct Materials Purchase cost -savings program.
Meeting Date: 09/22/2020
Prepared by:
Title: Manager - Procurement — Procurement Services
Name: Sandra Herrera
09/04/2020 10:05 AM
Submitted by:
Title: Manager - Procurement — Procurement Services
Name: Sandra Herrera
09/04/2020 10:05 AM
Approved By:
Review:
Procurement Services
Procurement Services
Administrative Services Department
Administrative Services Department
County Attorney's Office
Office of Management and Budget
County Attorney's Office
Office of Management and Budget
County Manager's Office
Board of County Commissioners
Opal Vann
Level 1 Purchasing Gatekeeper
Sandra Herrera
Additional Reviewer
Paula Brethauer
Level 1 Department Reviewer
Len Price
Level 2 Department Head Review
Scott Teach
Level 2 Attorney Review
Debra Windsor
Level 3 OMB Gatekeeper Review
Jeffrey A. Klatzkow Level 3 County Attorney's Office Review
Laura Wells
Additional Reviewer
Nick Casalanguida Level 4 County Manager Review
MaryJo Brock
Meeting Pending
Completed
09/04/2020 10:08 AM
Completed
09/04/2020 10:10 AM
Completed
09/04/2020 11:48 AM
Completed
09/08/2020 4:40 PM
Completed
09/09/2020 9:48 AM
Completed
09/09/2020 11:23 AM
Completed
09/09/2020 11:56 AM
Completed
09/09/2020 1:05 PM
Completed
09/16/2020 8:57 AM
09/22/2020 9:00 AM
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ORDINANCE NO.2020 -
AN ORDINANCE AMENDING ORDINANCE NO.2013-69, AS AMENDED, NOW
KNOWN AS THE COLLIER COUNTY PROCUREMENT ORDINANCE, BY
SPECIFICALLY AMENDING SECTION THREE, "APPLICABILITY AND
APPROVED THRESHOLDS," TO ADOPT A DIRECT MATERIALS
PURCHASE PROGRAM; SECTION FOUR, "DEFINITIONS," TO INCLUDE
THE DEFINITION FOR A DIRECT MATERIAL PURCHASE; SECTION SIX,
"DUTIES OF PROCUREMENT SERVICES DIVISION," TO ADD
CLARIFICATION TO THE TAX EXEMPTION PROVISION AS IT PERTAINS
TO THE DIRECT MATERIALS PURCHASE PROGRAM; AND SECTION
SIXTEEN, "PAYMENT OF INVOICES," TO INCLUDE A REFERENCE TO
DIRECT MATERIAL PURCHASES; PROVIDING FOR CONFLICT AND
SEVERABILITY; PROVIDING FOR INCLUSION INTO THE CODE OF LAWS
AND ORDINANCES, AND PROVIDING FOR 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, to better effectuate this desire, on December 10, 2013, the Board adopted
Ordinance No. 2013-69, now known as the "Collier County Procurement Ordinance"; and
WHEREAS, the Board subsequently amended Ordinance No. 2013-69 through its adoption of
Ordinance No. 2015-37, Ordinance No. 2015-51, Ordinance No. 2016-11, Ordinance No. 2016-19, and
Ordinance No. 2018-38; and �4
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WHEREAS, the Board now seeks to further amend Ordinance No. 2013-69 to adopt a Direct N
Materials Purchase Program, to provide for and promote a formal cost savings measure in the
Procurement Ordinance for County projects through the application of the sales tax exemption on the
County's direct purchase of materials.
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that Ordinance No. 2013-69, as amended,
is further amended as follows:
SECTION ONE: AMENDMENT TO SECTION THREE OF THE COLLIER COUNTY
PROCUREMENT ORDINANCE.
Section Three is hereby amended to add subparagraph number 5, as follows:
SECTION THREE: Applicability and Approved Thresholds
5. The Board of Coun Commissioners encourages the implementation of cost sayings measures
processes.,...and procedures as part of its various adopted procurement methods includin but not limited to
Words Underlined are added; Words cfmek T4 fough are deleted.
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Direct Material Purchase (DMP), P-Card purchases, and bulk purchases as mAy be in the best interest of
the County. In furtherance of implementing cost saying measures, such as Direct Material Purchases and
the Board of Coupjy Commissioner's other adopted methods of procurement, the Board delegates to the
CouM Manner or his designee, the authoriy to manage- and administer the procedures, processes and
measures necessmy to maximize the purchasing value of public funds ex ended in the procurement of
materials.
SECTION TWO: AMENDMENT TO SECTION FOUR OF THE COLLIER COUNTY
PROCUREMENT ORDINANCE,
Section Four is hereby amended to add the following additional definition:
SECTION FOUR: Definitions
Direct Material Purchase is a cost savings measure to achieve sales tax savings through the Coun 's
sales tax exemption by purchasingmaterials directly with a..supplier or vendor. Other savings. m4y be
achieved in the Direct Materials Purchase process through the use of Purchasing Cards rebates
discounts and other cost savings measures.
SECTION THREE: AMENDMENT TO SECTION SIX OF THE COLLIER COUNTY
PROCUREMENT ORDINANCE.
Section Six, subparagraph 7, is hereby amended as follows:
SECTION SIX: Duties of Procurement Services Division
Within the constructs of this Ordinance, the Procurement Services Division shall be responsible
for:
7. Tax Exemption: Procuring items for the County to exercise its tax exemption status
when eligible, to include:
a. Establishing and administering a Direct Materials Purchasing Program that includes
processes and procedures to encourage the implementation of such savings programs -and
the application of such related cost savings measures where it is in the best interest of the
Coun .
Words Underlined are added, Words Struok ThFengh are deleted.
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b. Developing and implementing other tax saving and cost saving opportunities and
means related to purchasing and procurement.
SECTION FOUR: AMENDMENT TO SECTION EIGHT OF THE COLLIER COUNTY
PROCUREMENT ORDINANCE.
Section Eight, subparagraph 13, is hereby amended as follows:
SECTION EIGHT: Exemptions from Competitive Process
13. Direct purchase orders issued when it is in the best interest of Collier County. Collier
County may make direct purchases of goods and services when the County can procure these items at a
lower cost and/or realize a tax or delivery savings. Direct Material Purchase Orders derived out of Direct
Material Purchases and/or other cost savings measures may be administered through contracts procured
through Requests for Quote RF Invitation to Bid (ITB), Construction Invitation to Bid ITB Request
for Pro osals (RFP), Invitation for Oualifications Ip Construction Mana er at Risk CMAR Design
Build Progressive Design Build, and Invitation to Negotiate (ITN) as may be applicable and or available.
SECTION FIVE: AMENDMENT TO SECTION SIXTEEN OF THE COLLIER COUNTY o
ME
PROCUREMENT ORDINANCE. r
0
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Section Sixteen, subparagraph 1, is hereby amended to add subsection "d," as follows:
SECTION SIXTEEN: Payment of Invoices
1. Agencies under the purview of the Board of County Commissioners shall be in
compliance with F.S. § 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:
a. The purchase of commodities and services;
b. The purchase or lease of personal property;
C. The lease of real property.
d. Direct Material Purchases.
Words Underlined are added; Words Strac ^ T-hfou^h are deleted.
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SECTION SIX: CONFLICT AND SEVERABILITY.
In the event this Ordinance conflicts with any other ordinance of Collier County or other
applicable law, the more restrictive shall apply. If any phrase or portion of this 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 SEVEN: INCLUSION IN THE CODE OF LAWS AND ORDINANCES.
The provisions of this Ordinance shall become and be made a part of the Code of Laws and
Ordinance of Collier County, Florida. The sections of the 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 EIGHT: EFFECTIVE DATE.
This Ordinance shall apply to the procurement of goods and services by the County as of the
below date of adoption by the Board of County Commissioners, and shall be effective upon filing with
the Department of State.
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PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Z
Florida, this day of
ATTEST:
Crystal K. Kinzel, Clerk of Courts
& Comptroller
M.
, Deputy Clerk
Approved as to form and legality:
Scott R.Teach
Deputy County Attorney
2020. U
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BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA 0-
By:
BURT L. SAUNDERS, CHAIRMAN
Words Underlined are added; Words del' Through are deleted.
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