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Agenda 09/08/2015 Item #16K 49/8/2015 16.K.4. EXECUTIVE SUMMARY Recommendation to authorize the County Attorney to advertise an ordinance for future consideration which would amend Section Fifteen of the Board's Purchasing Ordinance (Ordinance No. 2013 -69, as amended), to conform the County's Preference to Local Businesses in County contracts to recent changes in Florida law. OBJECTIVE: To conform the County's Preference to Local Businesses in County contracts to Florida law by adding the following provision to the County's Purchasing Ordinance: This Policy shall not be utilized with respect to any competitive solicitation for construction services in which 50 percent or more of the cost will be paid from state - appropriated funds which have been qppropriated at the time of the competitive solicitation. CONSIDERATIONS: This past Session the Legislature enacted SB 778, "prohibiting local ordinances and regulations from restricting competition for the award of a contract for construction services based upon certain conditions." The proposed change tracks the language of this new legislation. A copy of SB 778 is included as back -up. Staff has advised me that due to the multiple funding streams applied to many construction projects and the attendant administrative burden of determining on an individual project basis whether 50 percent or more of cost will be paid from state - appropriated funds, staff will remove local vendor preference language from construction solicitations in order to insure compliance with the new legislation. FISCAL IMPACT: None GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: The proposed amendment has been drafted by the County Attorney and is legally sufficient for Board action. This item requires majority vote. — JAK RECOMMENDATION: That the Board approves the proposed amendment to the Purchasing Ordinance and authorizes the County Attorney to advertise this amendment and return to the Board for approval. Prepared by: Jeffrey A. Klatzkow, County Attorney Packet Page -3467- 9/8/2015 16.K.4. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.K.16.K.4. Item Summary: Recommendation to authorize the County Attorney to advertise an ordinance for future consideration which would amend Section Fifteen of the Board's Purchasing Ordinance (Ordinance No. 2013 -69, as amended), to conform the County's Preference to Local Businesses in County contracts to recent changes in Florida law. Meeting Date: 9/8/2015 Prepared By Name: NeetVirginia Title: Legal Assistant/Paralegal, CAO Office Administration 8/11/2015 1:50:55 PM Submitted by Title: County Attorney, Name: KlatzkowJeff 8/11/2015 1:50:56 PM Approved By Name: KlatzkowJeff Title: County Attorney, Date: 8/12/2015 9:05:42 AM Name: IsacksonMark Title: Division Director - Corp Fin & Mgmt Svc. Office of Date: 8/13/2015 11:05:50 AM Name: KlatzkowJeff Title: County Attorney, Date: 8/14/2015 4:28:46 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 8/19/2015 4:08:12 PM Packet Page -3468- 9/8/2015 16.K.4. Packet Page -3469- ENROLLED 2015 Legislature 1 9/8/2015 16.K.4. CS for CS for SB 778, 2nd Engrossed 2015778er 2 An act relating to local government construction 3 preferences; creating s. 255.0991, F.S.; defining 4 terms; prohibiting local ordinances and regulations 5 from restricting competition for the award of a 6 contract for construction services based upon certain 7 conditions; requiring a state college, county, 8 municipality, school district, or other political 9 subdivision of the state to make specified disclosures 10 in competitive solicitation documents; providing 11 applicability; providing an effective date. 12 13 Be It Enacted by the Legislature of the State of Florida: 14 15 Section 1. Section 255.0991, Florida Statutes, is created 16 to read: 17 255.0991 Contracts for construction services; prohibited 18 local government preferences. - 19 (1) For purposes of this section, the term: 20 (a) "Competitive solicitation" has the same meanina as in 21 s. 255.248. 22 (b) "State- appropriated funds" means all funds appropriated 23 in the General Appropriations Act, excluding federal funds. 24 (2) For a competitive solicitation for construction 25 services in which 50 percent or more of the cost will be paid 26 from state - appropriated funds which have been appropriated at 27 the time of the competitive solicitation, a state college, 28 county, municipality, school district, or other political 29 subdivision of the state may not use a local ordinance or Page 1 of 2 CODING: Words -z are c Packet Page - 3470 -ds underlined are additions. ENROLLED 9/8/2015 16.K.4. 2015 Legislature CS for CS for SB 778, 2nd Engrossed 2015778er 30 regulation that provides a preference based upon: 31 (a) The contractor's maintaining an office or place of 32 business within a particular local jurisdiction; 33 (b) The contractor's hiring employees or subcontractors 34 from within a particular local jurisdiction; or 35 (c) The contractor's prior payment of local taxes, 36 assessments, or duties within a particular local jurisdiction. 37 (3) For any competitive solicitation that meets the 38 criteria in subsection (2), a state college, county, 39 municipality, school district, or other political subdivision of 40 the state shall disclose in the solicitation document that any 41 applicable local ordinance or regulation does not include any 42 preference that is prohibited by subsection (2). 43 (4) Except as provided in subsection (2), this section does 44 not prevent a state college, county, municipality, school 45 district, or other political subdivision of the state from 46 awarding a contract to a contractor in accordance with 47 applicable state laws or local ordinances or regulations. 48 Section 2. This act shall take effect July 1, 2015. Page 2 of 2 CODING: Words s= are c Packet Page -3471-:ds underlined are additions. 9/8/2015 16.K.4. ORDINANCE NO. 2015 - AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO. 2013 -69, AS AMENDED, KNOWN AS THE COLLIER COUNTY PURCHASING ORDINANCE, BY AMENDING SECTION FIFTEEN, "PROCEDURE TO PROVIDE PREFERENCE TO LOCAL BUSINESSES IN COUNTY CONTRACTS," IN ORDER TO CONFORM WITH RECENT CHANGES IN FLORIDA LAW; PROVIDING FOR CONFLICT AND SEVERABILITY, PROVIDING FOR INCLUSION INTO THE CODE OF LAWS AND ORDINANCES, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on December 10, 2013, the Board of County Commissioners (Board) adopted Ordinance No. 2013 -69, known as the Collier County Purchasing Ordinance; and WHEREAS, the Board subsequently amended the Collier County Purchasing Ordinance through its adoption of Ordinance No. 2015 -37; and WHEREAS, the Florida Legislature recently enacted SB 778, "prohibiting local ordinances and regulations from restricting competition for the award of a contract for construction services based upon certain conditions;" and WHEREAS, the Board wishes to amend its Purchasing Ordinance to conform the County's Preference to Local Businesses in County contracts to these changes in Florida law. NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: Amendment to Section Fifteen of Ordinance No. 2013 -69, as Amended. 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 - pennanent structure such as a construction trailer, storage shed, or other non- pennanent 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 Words Underlined are added; Words Struck Threug" are deleted. Packet Page -3472- 9/8/2015 16.K.4. 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 and responsive bidders. Next, the Purchasing Department shall determine if the lowest local bidder meets the requirements of F.S. § 287.087 (Preferences to businesses with drug -free workplace programs). If the lowest local bidder meets the requirements of F.S. § 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 F.S. § 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 fog° 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 Words Underlined are added; Words Stfuel- T" .,...a,, are deleted. Packet Page -3473- 9/8/2015 16.K.4. 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 I IB.2 (which are subject to F.S. § 287.055) and subsection 1113.3 (which are subject to F.S. § 11.45) shall not be subject to this local preference section. (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. (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 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 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 Words Underlined are added; Words Stfuek T4..., ugh are deleted. Packet Page -3474- 9/8/2015 16.K.4. Commissioners. For purchases of $50,000.00 or less, the Purchasing Department shall systematically encourage departments to include local vendors when soliciting quotations in accordance with this policy. (7) This Policy shall not be utilized with respect to any competitive solicitation for construction services in which 50 percent or more of the cost will be paid from state - appropriated funds which have been appropriated at the time of the competitive solicitation. SECTION TWO: 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 THREE: 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 FOUR: 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 day of , 2015. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA wo Deputy Clerk Approved as to form and legality: Jeffrey A. Klatzkow County Attorney ma TIM NANCE, CHAIRMAN Words Underlined are added, Words Stf-dek Through are deleted. Packet Page -3475-