01-03-84 v MINUTES OF THE COMMITTEE OF THE WHOLE MEETING OF THE ATLANTIC BEACH
CITY COMMISSION HELD AT THE CITY HALL ON JANUARY 3, 1984 AT 7: 15 P.M.
PRESENT: William S. Howell, Mayor-Commissioner
Robert B. Cook, Sr.
William I. Gulliford, Jr.
John W. Morris, Jr. , Commissioners
AND: A. William Moss, City Manager
Claude L. Mullis, City Attorney
Adelaide R. Tucker, City Clerk
ABSENT: Catherine G. Van Ness, Commissioner
Mayor Howell called the meeting to order at 7: 15 p.m. for the purpose of dis-
cussing the proposed "Purchasing Ordinance" which was presented to the Commis-
sion on December 12, 1983. A general discussion was held on the entire Ordinance.
Problem areas were considered item by item as follows:
Article II- Section 1.Formal Contract Procedure - increase the limit of $1,000
to $2,500 before going to bid was left as submitted. (This will protect non-
recurring emergency repairs and/or purchased.)
Article II-Section 1.A. 1- add to the word newspaper "the widest general
circulation in the area". "Mail out invitations to bid" should be listed in
this section also. Notice of five (5) days left in as submitted.
Article II - Section 1.B.Bid Deposits- Suggested that bid deposits should not
be required on the city's purchase of capital items. Perhaps letter of credit.
Article II - Section 1.C.Bid Opening - Suggestion was made to change back to
the old procedure to open bids at Commission meetings. Commissioner Gulliford
moved to recommend to the Commission that we return to the old method that bid
openings will be held at Commission meetings. 3. Tabulation- after the word
"bidders" add "upon request".
Article II - Section D.Award of Contract- Add "those bids over $2,500". Change
the phrase "City Manager shall consider" to"City Commissions shall consider".
Article II -Section D.2. Delete.
Article II - Section D. 3ATie Bids - Delete. Local vendors and rewrite B.Outside Vendors
Article II - Section D. 4- rewrite to comply with the State Law.
Article II - Section E.- Change "Exceptions to Formal Contract Procedure" to read
"Exceptions to Formal Bidding Procedure". Move item 7 up to the top. Change the word
"When" to "If" the City Commission Item 1 - delete the word "economically"
on second line.
Article II - Section 3.Fifth line -"The City Manager shall retain such records as
required by the State Law that constitutes public records and good accounting procedures"
Article II - Section 4.A. first line - delete "and other law". 4.C. Delete. 4.J.Delete.
Article II - Section 4.K. The City Attorney stated that under the State Law contracts
are counter signed by the Director of Finance that the funds are available and
appropriated for the purpose of making the payments thereunder.
PAGE TWO
MINUTES-COM.OF THE WHOLE
JANUARY 3, 1984
The Mayor requested the City Attorney to search the Charter for provisions on
who signs on behalf of the City in order for amendments to be made simultaneously.
There being no other business to come before the Commission,the Mayor declared
the meeting adjourned at 9:15 p.m.
/ /
William . Howell
Mayor-Commissioner
ATTEST:
Adelaide R. Tucker
City Clerk
CITY OF
, tEa tic 'each - 9101.ea'a
716 OCEAN BOULEVARD
< — —— P.O.BOX 25
ATLANTIC BEACH,FLORIDA 32233
TELEPHONE(904)249-2395
•
December 12, 1983
MEMORANDUM
TO: The Honorable Mayor and City Commission
FROM: A. William Moss, City Manager
SUBJECT: Proposed Ordinance Prescribing Rules and Regulations
for the Purchase or Contract for Supplies, Materials,
Equipment, Services, and Public Improvements
Section 70 of the City Charter (attached) authorizes the City Manager to
purchase supplies, materials and equipment pursuant to rules established
by ordinance. Section 71 requires competitive bidding under rules and
regulations prescribed by ordinance. Section 72 requires any
improvement costing $1,000 or more be made by contract to the lowest
responsible bidder after such notice and competition as may be
prescribed by ordinance. Section 8-4 through 8-10 of the Code
(attached) establish several rules and regulations for purchasing.
The existing rules and procedures established by charter and ordinance
have several shortcomings. These include:
1. Lack of rules regarding the notice and advertising
of bids.
2. Lack of requirement for sealed, competitive bids with
public opening of bids.
3. Lack of definition of "lowest responsible bidder".
4. Absence of bid opening procedure.
5. Lack of allowable exceptions to the former contract
procedure.
6. Absence of clearly defined responsibilities and scope of
authority to contract for supplies, services and public
improvements.
7. Absence of procedures governing emergency purchase of
supplies and services.
.
8. Unreasonable limitation of $1,000 bid limit established
for public improvements by charter,5 years ago.
Ordinance No. 5-83-12 is presented for consideration by the City
Commission. It is your City Manager's opinion that the ordinance
establishes those controls necessary and appropriate to help ensure
standardization of purchasing procedures, effective operating
procedures, and public confidence in the expenditure of public funds.
Respectfully,
/(f• /1-441--A/L
A. William Moss
City Manager
AWM:jl
ORDINANCE NO. 5-83-12
AN ORDINANCE PRESCRIBING RULES AND REGU-
LATIONS FOR THE PURCHASE OR CONTRACT FOR
SUPPLIES, MATERIALS, EQUIPMENT, SERVICES,
AND PUBLIC IMPROVEMENTS; REPEALING SECTION
72 OF THE CHARTER ENTITLED "CONTRACTS FOR
CITY IMPROVEMENTS", AND ARTICLE II, SECTION
8-4 THROUGH 8-8 OF THE CODE OF ORDINANCES
ENTITLED "PURCHASING"
WHEREAS, Section 70 of the Charter of the City of Atlantic Beach
provides that the City Manager, pursuant to rules and regulations
established by ordinance shall contract for, purchase, store and
distribute all supplies, materials and equipment required by any office,
department or agency of the City government, and
WHEREAS, Section 71 of the Charter of the City of Atlantic Beach
provides that before the City Manager or his appointed purchasing agent
makes any purchase or contract for supplies, materials or equipment, he
shall give ample opportunity for competitive bidding, under such rules
and regulations, and with such exception, as the Commission may
prescribe by ordinance, and
WHEREAS, the City Commission of the City of Atlantic Beach finds
that it is in the best interest of the City to establish rules and
procedures for the purchase of supplies, materials, equipment, and
improvements, and
WHEREAS, the City of Atlantic Beach is a home rule municipality
pursuant to the Constitution of the State of Florida and the Municipal
Home Rule Power Act,
NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF ATLANTIC
BEACH, FLORIDA, AS FOLLOWS:
Section 1. Section 72 of the Charter of the City of Atlantic
Beach, entitled "Contracts for City Improvements", is hereby deleted in
its entirety.
Section 2. Article II, Section 8-4 through 8-8 of the Code of
Ordinances of the City of Atlantic Beach be repealed and the following
provisions substituted therefor:
ARTICLE II
Section 1. Formal Contract Procedure. All supplies
and contractual services, except as otherwise provided
herein, when the estimated cost thereof shall exceed
two thousand five hundred dollars ($2,500) , shall be of -
responsible
purchased by formal, written contract from the lowest
bidder after due notice inviting proposals.
A. Notice Inviting Bids
1. Newspaper. Notice of inviting bids shall
be published once in at least one news-
paper at least five (5) days preceding the
last day set for the receipt of proposals.
Such notice shall include a brief des-
cription of such services or supplies
and shall state where bidding informa-
tion may be secured and the time and
place of opening bids. ,p
B. Bid Deposits. Bid deposits or bid bonds shall be a^ '
required on all public works contracts with the
dollar amount in excess of two thousand five 110,5;e4.1)/
hundred dollars ($2,500) except for maintenance V
contracts. When bid bonds or bid deposits are144:141
required, said requirement shall be prescribed in
the public notices inviting bids. Unsuccessful
bidders shall be entitled to return of surety
pursuant to the requirements set forth in the
public notice inviting bids. Further, a success-
ful bidder may be required to forfeit any surety
required by the City upon failure on such bidder's
part to enter a contract within ten (10) days
after the award of said contract or as is otherwise
required in the bidding documents.
C. Bid Opening Procedure.
1. Seal. Bids shall be submitted sealed to the
City Manager and shall be identified as bids
on the envelope.
2. Opening. Bids shall be opened in public at
the time and place stated in the public
notice.
3. Tabulation. Tabulation of all bids received
shall be available for public inspection ,incl;
shall be furnished to all bidders.' iP
D. Award of Contract.
1. Lowest Responsible Bidder. Contract shall be
awarded to the lowest responsible bidder. In ��
determining "lowest responsible bidder", ins. _
addition to price, the City Melia-ger- shall
consider:
a. The ability, capacity and skill of
the bidder to perform the contract or
provide the service required;
b. Whether the bidder can perform the
contract or provide the service
promptly, or within the time speci-
fied, without delay or interference;
c. The character, integrity, reputa-
tion, judgment, experience and
efficiency of the bidder;
d. The quality of performance of
previous contract or services;
e. The previous and existing compli-
ance by the bidder with laws and
ordinances relating to the con-
tract or service;
f. The sufficiency of the financial
resources and ability of the bidder
to perform the contract or provide
the service;
g. The quality, availability and
adaptability of the supplies or
contractual services to the parti-
cular use required;
h. The ability of the bidder to provide
future maintenance and service for
the use of the subject of the contract;
2. Awar o Other Than Low Bidder. to ��
is not gi n to the lowest bidder, a full and
complete stat nt of the reasons for placing
the order eigewhe shall be prepared by the
City Manager and filed w t e other papers
related to the transaction.
3. Tie Bids.
a. Local Vendors. If all bids received
are for the same total amount or unit
price, quality'tdservice being o '^"
equal, the contract shall be awarded
to a local bidder.
b. Outside Vendors. When subsection 3a
is not in effect the City Manager /11);)ri(
shall award the contract to one of the
tie bidders by drawing lots in public.
4. Performance and Labor and Material Payment Bonds.
The City Manager shall require a performance
bond and a labor and material payment -
bond before entering a contract in such c/4)amount as he shall find necessary to pro
r.1\
Yom',i'"('4"4"
tect the best interest of the City, except the
City Manager may waive such bonds in accordance
with Florida Statutes. ,
E. Exceptions to Formal -Gent -t on Procedure. The formal
...
contract procedure as defined in this section is not
required
•
1. When the goods or services to be procured are
eaelafamie-=71; procurable from only one source,
such as contracts for telephone service,
electrical energy, and other public utility
services; books, pamphlets, periodicals,
specifically designed business and research
equipment and related supplies.
2. Where the services required are for professional,
artistic skills or insurance, pursuant to a
written contract.
3. In emergencies involving public health, safety
or where immediate expenditure is necessary for
repairs to City property in order to protect
against further loss of or damage to the City
property to prevent or minimize serious
destruction of City services.
4. Contracts for the maintenance or servicing of
equipment which are made with the manufacturer
or authorized service agent of equipment when
the maintenance or servicing can best be performed
by the manufacturer or authorized service agent
where such a contract would otherwise be
advantageous to the City.
5. When the goods or services are procured from other
governmental agencies or their contracts.
6. Purchase and contracts for the use or purchase of
data processing equipment or data processing
systems software and reproduction equipment.
1 ,
7. .Ac the City Commission, by a vote of the majority
of those members present, waives a formal contract
procedure.
Section 3. Open Market Procedures. All purchases of supplies
and contractual services of less than the estimated value of two
thousand five hundred dollars ($2,500) may be made in the open market
without newspaper advertisement and without observing the procedure
prescribed by Section 2 for the award of formal contracts. The City
Managex_shall keel a- record of all open market orders and orders- for--the
purchase-of su lles- and services. Of/ qf:T�� C/R..
Section 4. Scope of Purchasing Authority. The City Manager
shall have the authority:
A. To award contracts within the purview of this ordinance,a&,
441-h :. Provided, however, that no purchase order or con-
tract for an amount in excess of two thousand five hundred
dollars ($2,500) be executed without City Commission
approval unless there is an emergency involving public
health, safety or where immediate expenditure is necessary
for repairs to City property in order to protect against
further loss of or damage to the City property to prevent
or minimize serious destruction of City services. In that
event, the City Manager shall report the action taken and
expense incurred to the City Commission.
B. To prepare purchase procedures necessary for the function
of purchasing.
C-'Fo"s�1±-e.r-_dispc s-e_o£ all obsolete or unusable-personal
property in accordance with the "laws of the Sta.te,or tl-e
ordinances or resolutions of the City.. 4.,.�,c,„...,
D. To act or procure for the City the highest quality in supplies
and contractual services at least expense to the City.
E. To discourage uniform bidding and endeavor to obtain as full
and open competition as possible on all purchases and sales.
F. To establish all rules and regulations authorized by this
ordinance and any others necessary to its operation.
G. To prescribe and maintain such forms as he shall find
reasonably necessary to the operation of this ordinance.
H. To prepare and adopt standard purchasing nomenclature for
using agencies and suppliers.
I. To exploit the possibilities of buying in bulk so as to
take full advantage of discounts.
J. In addition to the authority otherwise c -erred in this
article, the City Manager shall have e authority:
1) To declare vendors who def It on their quota-
tions irresponsible bid rs and to disqualify
them from receiving a business from the munici-
pality for a statederiod of time.
2) To reject all bids, pats of bids, or all bids
from any one ,cat more suppliers for contractual
services ityluded in the proposed contract when
the public interest will be served thereby.
3) To r ect the bid of a contractor or supplier who
i in default on the payment of taxes, licenses, or
004 V":e(ltdilA/4)(;)VS
qied'efr 'fv,r4>1"*°
1;4;11/ p4;01fr
CA911:"14'
ather-mone to the
K. To sign on behalf of the City any contract authorized by the
City Commission, excepting where the City Commission directs
that some other officer or officers shall do so.
Section 5. This ordinance shall become effective immediately
upon its final passage.
* * < * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Passed by the City Commission on First Reading
Passed by the City Commission on Second & Final Reading
ATTEST:
(SEAL) Adelaide R. Tucker
City Clerk
E 65 At1.,ntic P a+ch City Code § 69
Sec . _65 . Allotments constitute basis of expenditures and are
subject to revision .
The city manager shall authorize all expenditures for the offices, departments
and agencies to be made from the appropriation on the basis of approved allotments
and not otherwise. An approved allotment may be revised during the budget year in, •
the same manner as the original allotment was made. If, at any time during the hid-
get year, the city manager shall ascertain that the available income, plus balances,
for the year will be less than the total appropriations, he shall reconsider.the work
program and allotments of the several offices, departments and agencies and revise
the allotments so as to forestall the making of expenditures in excess of the said in-
cum e.
Sec . 66 . Transfers of appropriations .
The city manager may at any time transfer any unencumbered appropriation bal-
ance, or portion thereof, between general classifications of expenditures within an
office, depai tn,ent or agency. At the request of the city manager, the city commis-
sion by resolution may at any time transfer any unencumbered appropriation balance,
or portion thereof, from one office, department or agency to another office, depart-
ment or agency. (Sp. Acts 1961, ch. 61-1863. )
Sec . 67 . When contracts and expenditures prohibited.
No officer, department, or agency shall, during any budget year, expend or con-
tract to expend any money or incur any liability, or enter into any contract which by
its terms involves the expenditure of money, for any purpose, in excess of the amounts
appropriated for that general classification of expenditure pursuant to this Charter.
Any contract, verbal or written, made' in violation of this Charter shall be null and
void. Any officer or employee of the city who shall violate this section shall be guilty
of a misdemeanor and, upon conviction thereof, shall cease to hold his office or em-
ployment. Nothing in this section contained, however, shall prevent the making of
contracts or the spending of money for capital improvements to be financed in whole
or in part by the issuance of bonds, nor the making of contracts of lease or for ser-
vices for a period exceeding the budget year in which such contract is made, when
such contract is permitted by law.
Sec . 68 . Appropriations lapse at end of year.
All appropriations shall lapse at the end of the budget year to the extent that
they shall not have been expended.
Sec . 69 . Fees shall be paid to city government.
All fees received by an officer or employee shall belong to the city government
and shall be paid daily to the- city treasury.
24
•
' § 70 The Charter § 73
Sec . 70 . Division of purchases .
The city manager or his appointed purchasing agent, pursuant to rules
and regulations established by ordinance , shall contract for, purchase, store
and distribute all supplies, materials and equipment required by any office,
department or agency of the city government. The purchasing agent shall. also
have power and shall be required to:
(1) Establish and enforce specifications with respect to supplies,
materials, and equipment required by the city government;
(2) Inspect or supervise the inspection of all deliveries of supplies,
materials, and equipment, and determine their quality, quantity and confor-
mance with specifications;
(3) Have charge of such general storerooms and warehouses as the
commission may provide by ordinance;
(4) Transfer to or between offices, departments or agencies.
Sec . 71 . Competitive bidding .
Before the city manager or his appointed purchasing agent makes any
purchase of or contract for supplies, materials or equipment, he shall give ample
opportunity for competitive bidding, under such rules and regulations, and with
such exceptions, as the commission may prescribe by ordinance.
Sec . 72 . Contracts for city improvements .
Any _city improvement costing more than one thousand dollars shall be
executed by contract, except where such improvement is authorized by the com-
mission to be executed directly by a city department in conformity with detailed
plans, specifications and estimates. All such contracts for more than one
thousand dollars shall be awarded to the lowest responsible bidder after such
public notice and competition as may be prescribed by ordinance, provided the
city manager, with approval of the city commission, shall have the power to re-
ject all bids and advertise again. Alterations in any contract may be made when
authorized by the commission upon the written recommendation of the city
manager.
Sec . 73 . Accounting control of purchases .
All purchases made and contracts executed by the city manager or his
appointed purchasing agent shall be pursuant to a written requisition from the
head of the office, department or agency whose appropriations will be charged,
and no contract or order shall be issued to any vendor unless there is to the
credit of such office, department or agency a sufficient unencumbered appro-
25
Supp . 47, 5-78
• 6 8-4 Finance and Taxation § • 8--8
any other purpose other than for the protection against fallout or other disaster
shall be assessed the same as all other real property within the city . (Ord. No.
30-61-1, § 2.)
Article H. Purchasing.4
Sec . 8 - 4 . Two or more bids required for purchases over
one thousand dollars ; exception .
Two or more bids shall be required on all purchases of supplies, ma-
terials and equipment in excess of one thousand dollars; except, that under
special conditions the commission may waive this requirement. (Ord. No. 5-
57-2, § 1; Ord. No. 5-79-6, § 1.)
Sec . 8- 5 . City improvements of over one thousand dollars
to be executed by contract ; exceptions .
Any city improvement costing in excess of one thousand dollars shall be
executed by contract, except where such improvement is authorized by the city
commission to be executed by a city department in conformity with detailed
plans, specifications and estimates. (Ord . No. 5-57-2, § 2.)
• Sec . 8- 6 . Contracts to be awarded lowest responsible
bidder .
All contracts shall be awarded to the lowest responsible bidder that can
best serve the interest of the city. (Ord. No. 5-57-2, § 3.)
Sec . 8- 7 . Rejection of bids and readvertisement .
The city manager, with the approval of the city commission, shall have
the power to reject all bids and advertise again. (Ord. No. 5-57-2, § 4.)
Sec . 8- 8 . Alterations in contracts .
Alterations in any contract may be made when authorized by the city com-
mission upon the written recommendation of the city manager. (Ord. No. 5-57-
2 , § 5.)
•
4. For charter provision authorizing city,commis-
sion to provide rules and regulations for pur-
chases and sales made on behalf of city, see
Char. , § 9(13). As to purchasing generally,
see Char. , §§ 70 to 74.
93
Supp. #8, 10-79
.,. 5 ,,S-9, Atl;intic Beach City Code 5 8-11
Sec . 8 - 9 . Authc,rity of purchasing agent to make purchases
not exceeding one thousand dollars .
The purchasing agent, with approval of the city manager, may make purchases
not to exceed one thousand dollars for any one purchase upon written requisition of
a department head when the chargeable budget account has an adequate unencum-
bered balance. (Ord. No. 5-57-2, § 6; Ord. No. 5-79-6, § 6.) •
Sec . 8- 10 . Payments .
•
Upon receipt of an invoice, confirmed by an approved purchase order and proof
that the materials, supplies or equipmenthave been received or work completed, the
city treasurer shall pay such indebtedness, taking advantage of all discounts allowed.
(Ord. No. 5-57-2, § 7.)
Article III. Cigarette Tax. S
Se_c . 8 - 11 . Imposed ; amount.
An excise or privilege tax, in addition to all other taxes of every kind imposed
by law, is hereby levied and imposed upon the sale, receipt, purchase, possession,
consumption, handling, distribution and use of cigarettes in the city for cigarettes of
standard dimensions as defined by the general law of the state in the following amounts:
(a) (1) Upon all cigarettes four inches long or less, five and one-half mills on
each cigarette;
(2) Upon all cigarettes more than four inches long and not more than six
inches long, eleven mills on each cigarette; and,
(3) Upon all cigarettes more than six inches long, twenty-two mills on each
cigarette.
(b) The description of cigarettes contained in subsection (a) of this section are
hereby declared to be standard as to dimensions for taxing purposes, as provided in
this article, and should any cigarette be received, purchased, possessed, sold, offered
for sale, given away or used of a size other than of standard dimensions, the same
shall be taxed at the rate of one cent on each such cigarette. -
(c) Where cigarettes described in subsection (a) (1) of this section are packaged
in varying quantities of twenty cigarettes or less, the following rate shall govern:
(1) Packages containing ten cigarettes or less require a five-and one-half-
cent. tax.
(2.) Packages containing more than ten but not more than twenty cigarettes
require an eleven-cent tax.
5. For state law prohibiting city from levying tax on sale of
cigarettes, see Fla. Stats. , § 210. 03.
►� 94
Supp. L8, 10-79
A