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Ordinance 2015-37 ORDINANCE NO. 2015 - 37 AN ORDINANCE AMENDING ORDINANCE 2013-69, KNOWN AS THE COLLIER COUNTY PURCHASING ORDINANCE, BY SPECIFICALLY AMENDING SECTION THREE, APPLICABILITY; SECTION FIVE, ESTABLISHMENT OF PURCHASING DEPARTMENT AND PURCHASING DIRECTOR; SECTION SEVEN, PURCHASES IN GENERAL, SECTION EIGHT, INFORMAL COMPETITION (PURCHASES EXCEEDING $3,000 BUT NOT GREATER THAN $50,000); SECTION FIFTEEN, PROCEDURE TO PROVIDE PREFERENCE TO LOCAL BUSINESSES IN COUNTY CONTRACTS; SECTION SIXTEEN, PAYMENT OF INVOICES; SECTION EIGHTEEN, STANDARDIZATION, COOPERATIVE PURCHASING AGREEMENTS AND GOVERNMENT CONTRACTS; SECTION NINETEEN, CONTRACT ADMINISTRATION; SECTION TWENTY- SEVEN, PURCHASING CARD PROGRAM; AND LASTLY PROVIDING 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, to better effectuate this desire, on December 10th, 2013, the Board adopted Ordinance No. 2013-69, known as the Collier County Purchasing Ordinance; and WHEREAS, issues have arisen with respect to the County Manager's authority to enter into agreements or purchases under $50,000, and the County Commission desires to clarify that the County Manager and the Procurement Services Director, and their designees, have had, and will continue to have, the authority to enter into such agreements; and WHEREAS, the Board of County Commissioners hereby makes a formal legislative finding that power to make purchases and enter into agreements and contracts under $50,000 are administrative and ministerial and promote the efficient administration of County government, and that having the County Manager and Procurement Services Director make purchases and enter into contracts under $50,000 is in the best interest of the County and secure the maximum efficiency for the benefit of the public; and WHEREAS, the Board of County Commissioners seek additional changes to the Purchasing Ordinance to increase efficiency and ease of administration; and WHEREAS, in keeping with the above, the Board of County Commissioners wishes to amend this Ordinance as follows. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA,that: The Collier County Purchasing Ordinance is hereby amended as follows: Words Underlined are added;Words Struck Through are deleted. Page 1 of 11 SECTION ONE: Section Three of the Purchasing Ordinance is hereby amended as follows: SECTION THREE: Applicability and Approved Thresholds. (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) or the Collier County Metropolitan Planning Organization 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. (c) The Board of County Commissioners hereby delegates the County Manager and Procurement Services Director or designees, the authority to make purchases and enter into contracts for purchases or awards in an amount not to exceed $50,000. (d) Following formal action taken by the Board of County Commissioners on purchases greater than the formal competitive threshold, the Board delegates to the County Manager or designee the authority to carry out the administrative and ministerial actions necessary to effectuate the Board's action, including but not limited to the subsequent issuance of Work or Purchase Orders. SECTION TWO: Section Five of the Purchasing Ordinance is hereby amended as follows: SECTION FIVE: Establishment of Purchasing Department Procurement Services Division and Purchasing Procurement Services Director. 1. There is hereby established the Collier County Purchasing Department Procurement Services Division, which shall be a distinct administrative department under the direction of the County Manager. 2. The Purchasing Procurement Services 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 Procurement Services Director only those powers and duties which are administrative and 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 be construed as administrative and ministerial in nature, for the purpose of carrying out the Board's directives and policies. The Procurement Services Director may delegate to one or more Purchasing Services Division employees any and all aspects of the authority vested in the Procurement Services Director. Words Underlined are added; Words Struck ou h are deleted. Page 2 of 11 3. Any reference throughout this Ordinance to Purchasing Ordinance shall be amended and revised to Procurement Ordinance, the Purchasing Department to Procurement Services Division, the Purchasing Director shall be amended and revised to refer to the Procurement Services Director, and to the Purchasing Manual shall be amended and revised to the Procurement Manual. SECTION THREE: Section Seven of the Purchasing Ordinance, Purchases in General, is hereby deleted in its entirety and replaced with the following: SECTION SEVEN: Small Purchases (Purchases $3,000 or less). A purchase shall not be artificially divided or split so as to qualify under this or any other section of this Purchasing Ordinance. All small purchases will generally be processed using a regular purchase order, or, a purchasing card in accordance with Section 27 of this Purchasing Ordinance. Operating Division 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 Procurement Services Director. Only the Board's Procurement Services staff may issue a qualification based solicitation. SECTION FOUR: Section Eight of the Purchasing Ordinance, Purchases under $50,000, is hereby deleted in its entirety and replaced with the following: SECTION EIGHT: Informal Competition (Purchases Exceeding $3,000 but Not Greater Than $50,000). A purchase shall not be artificially divided or split so as to qualify under this or any other section of this Purchasing Ordinance. Operating Division staff should make all reasonable efforts to purchase goods and services under Board approved contracts. In the event a contract is not available, or staff demonstrates that the price under contract exceeds the price on a non-contract, staff will procure the highest quality items or services at the least expense to the County by using the following informal competition process: A. Purchases exceeding $3,000 but not greater than $50,000 may be solicited by quotation as follows: 1. Minimum Number Quotes: Open market purchases or sales in excess of$3,000 but not greater than $50,000 shall be based on a good faith effort under direction of the Procurement Services Division to obtain at least three (3) competitive quotes. Awards shall be made to the lowest, qualified and responsive quote in accordance with the standards set forth in this Purchasing Ordinance. 2. Solicitation of Quotes: Open market sale or price quotes may be solicited in writing or electronically using available bidders' and supplier lists and must be tendered or confirmed in writing or electronically by the vendor prior to purchase. Words Underlined are added;Words Struck Through are deleted. Page 3 of 11 Only the Board's Procurement Services staff may issue a qualification based solicitation. Quote information will be reviewed and approved by the Procurement Services Director. 3. Public Record: The Procurement Services Director shall maintain records of all open market quotes according to public records law. Such records shall be open for public inspection after an award has been made. B. The requirements for requesting quotes from three (3) or more sources may be waived by the Procurement Services Director to the extent authorized by law for: 1. Purchase of library books, education and/or personnel tests, similar audio visual materials, periodicals, and printed library cards. 2. Professional services; and, in instances where commodities or services are purchased directly from the owner of a copyright or patent, a governmental agency, a recognized educational institution, or when there are no other identifiable sources available. 3. Purchases that the Procurement Services Director has determined to be legitimate sole or single source purchases. 4. Valid public emergencies or other exigent instances deemed by the County Manager pursuant to Section 25. 5. Purchase 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 FIVE: Section Fifteen: Procedure to Provide Preference to Local Businesses in County Contracts is hereby amended to add the following: (2) (c) Should a tie bid occur between a non-local bidder and a local bidder, the County shall award the contract to the local bidder. Should a tie occur between two local bidders, the County will "flip a coin" between the two lowest bidders. The coin toss winner will be awarded the contract upon approval by the Board of County Commissioners. SECTION SIX: Section Sixteen of the Purchasing Ordinance, Payment of Invoices, is hereby amended as follows: 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; Words Underlined are added; Words Struck-Through are deleted. Page 4 of 11 2. The purchase or lease of personal property; 3. The lease of real property. 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. freight and delivery charges that are not specifically identified on the purchase order of less than $500. C. 17 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. D. It shall be the responsibility of the County Manager, in consultation with the Clerk's Finance Director and operating Divisions, to establish, procedures for the timely payment of all transactions as defined under subsection 16.A. 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. E. D: Each December, the Procurement Services Purchasing Director and the Clerk of the Courts 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. F. Prior to payment, the Board shall approve all expenditures with a finding that such expenditures serve a valid public purpose. SECTION SEVEN: Paragraph A of Section Eighteen of the Purchasing Ordinance is hereby amended by adding the following clause: SECTION EIGHTEEN: Standardization, Cooperative Purchasing Agreements 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 in accordance with Section Words Underlined are added;Words Strttck—Through are deleted. Page 5 of 11 9; or if under the Formal Competitive Threshold, with approval of the purchase by the Procurement Services Director. SECTION EIGHT: Section Nineteen of the Purchasing Ordinance is hereby amended as follows: 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: 1. 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. 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 Procurement Services 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 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 change is not more than ten (10) percent of the current Board approved dollar amount. Such changes shall be reported monthly to the Board for Board in advance. Words Underlined are added; Words Struck StruelE-Thfaugh are deleted. Page 6 of 11 The proviso at the end of the previous paragraph shall not be applicable to term contracts or 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 applicable, shall require the approval of the Board of County Commissioners. The Board shall C. Contracts: Notices that terminate in its entirety a Board-approved purchase or contract must be approved by the Board of County Commissioners prior to its termination. 1. Modifications to Work Orders, Change Orders, and Amendments issued under a purchase order or contract that exceed ten (10%) of the current Board approved aggregate amount, or twenty percent (20%) of the current Board approved number of days; must be approved by the Board. 2. Modifications to Work Orders, Change Orders, and Amendments issued under a purchase order or contract that do not exceed ten (10%) of the current Board approved aggregate amount, or twenty percent (20%) of the current Board approved number of days; will be reported on the Procurement Services Administrative Ratification Report and presented to the Board for approval. 3. Modifications to Board approved purchases or contracts by the issuances of the following, but not limited to, direct material purchases, notices to proceed or non- compliance, stop work notices, authorization for the use of approved allowances and re- allocation of funds between line items, supplemental agreements, and changes by letter may be authorized and executed by the Procurement Services Director without further approval by the Board. 4. All material changes in scope of contracts must be approved by the Board in advance. 5. Sections one (1) through three (3) 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 Division(s). Such purchases shall be subject to all other provisions of this Purchasing Ordinance. Words Underlined are added;Words Struck Through are deleted. Page 7 of 11 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 Procurement Services 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 Procurement Services 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 Procurement Services 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 Procurement Services Director has received a request to renew from the Contractor or Project Manager verifying the Contractor's satisfactory performance. 2. That the Board-approved contract pursuant to Section 9 Formal Competitive Threshold, 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. 4. That a contract under the formal competitive threshold with multiple renewal year option terms may be approved annually by the Procurement Services Director. 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 exceeding Section Nine: Formal Competitive Threshold shall be authorized by the Board of County Commissioners. Once approved, subsequent purchase orders referencing those Board approved contracts may be issued by the Procurement Services Director. Contracts below Section Nine: Formal Competitive Threshold shall be subject to the review and approval by the County Attorney staff and signed by the Procurement Services Director. Purchase orders may be issued by the Procurement Services Director. G. Work Orders: The Purchasing Procurement Services Director may execute any work order if the work order is equal to or below such Board approval parameters for work orders as Words Underlined are added;Words Struck Through are deleted. Page 8 of 11 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 Board approved 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 Procurement Services Director may delegate to one or more Procurement Services Division employees any or all aspects of the authority vested in the Purchasing Procurement Services Director. All authority to execute documents that is vested pursuant to this Section 19 in the Purchasing Procurement Services 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 Procurement Ordinance, the Purchasing Procurement Services 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 Procurement Services 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 Procurement Services 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. Words Underlined are added;Words Struck Through are deleted. Page 9 of 11 4. That the Purchasing Procurement Services Director's letter expressly sets forth the percentage of cumulative retainage to be held for the remaining pay requests. The Purchasing Procurement Services 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 NINE: Section Twenty-Seven of the Purchasing Ordinance, is hereby amended as follows: SECTION TWENTY-SEVEN: Purchasing Card Program. The Purchasing Procurement Services Director shall be responsible for the overall management and operation of the County's purchasing card program in conformance with the Collier County Administrative Practices and Procedures Manual. 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 purchases. The Purchasing Procurement Services Director shall be authorized to assign cards to employees for these purchases. The Purchasing Procurement Services Director shall be responsible for establishing the following dollar limits for each assigned 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 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. Words Underlined are added; Words Struck Through are deleted. Page l0 of l In all such instances, the Procurement Services 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 TEN: 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 ELEVEN: 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 TWELVE: Effective Date. This 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 23 rek day of June, 2015. ATTEST a• x! O � BOARD OF COUNTY COMMISSIONERS DWIGH 5:E:'11ROC : lerk COLLIER COUNTY, FLORIDA BY . T. a Asa& By: / /� �� Attest as t'"µ' `P eptt' •lerk'lli' TIM NANCE, CHAIRMAN signature 0 ' ;' Appro d '''��;`- rm"an• legality: Oil It........_ . Jeffrey A 1.1'-kow, County Attorney I This ordinance filed with the q '1 ¢crdary of S�ate's Offjce the "�of uve ` °l 5 and acknowledgement_ f that fill . received this day of t) , 1 ay I A ..i.11, : Words Underlined are added;Words Struck Through are deleted. Page 11 of 11 ii- • ---'-' 4401k 4rynKF 1 .. FLORIDA DEPARTMENT Of STATE , RICK SCOTT KEN DETZNER Governor Secretary of State June 25, 2015 Honorable Dwight E. Brock Clerk of the Circuit Court Collier County Post Office Box 413044 Naples, Florida 34101-3044 Attention: Ms. Martha Vergara, BMR Senior Clerk Dear Mr. Brock: Pursuant to the provisions of Section 125.66, Florida Statutes,this will acknowledge receipt of your electronic copy of Collier County Ordinance No. 2015-37,which was filed in this office on June 25, 2015. Sincerely, Ernest L. Reddick Program Administrator ELR/lb R. A. Gray Building • 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270 • Facsimile: (850) 488-9879 www.dos.state.fl.us