Exh 7C~,
AGENDA Y'~EM NO.
DATE• 1 / ' z 2 - 49
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Ordinance No. 5-99-32 amending The City of Atlantic Beach Code of
Ordinances
SUBMITTED BY: Nelson Van Liere, Finance Director
DATE: November 13, 1999
BACKGROUND: Section 2-313 amended -The 1999/2000 Annual Operating Budget of the
City of Atlantic Beach was adopted for the first time in years by an
ordinance as is required by the City Charter. Section 2-313 entitled:
Transfers of Appropriation, indicates that the budget may be amended by
resolution, however, because the budget was adopted by ordinance, this
provision of the code must be amended. The attached changes to the code
require that amendments to the budget that increase, decrease or transfer
the appropriations from one department to another requiring City
Commission approval be done by ordinance.
The staffwould prefer to adopt the Annual Operating Budget by
resolution, thus only needing resolutions to amend, but this would require a
change in the City's Charter.
Section 2-318 deleted -This section of the code directs the Finance
Director to establish a reserve account for Fire Department revenue
generated by CPR classes. The City contracted to the City of Jacksonville
for the Fire Services, making this provision of the code obsolete.
The following recommended changes to Section 2 of the City's Code of
Ordinances are intended to accomplish the following:
To eliminate the different bid thresholds for enterprise funds
($5,000) and other funds ($2,500) and raise them to a uniform limit
of $10,000.
To grant the city manager the authority to procure goods and
services up to $10,000 without further commission involvement
using the same guidelines as the requirements for procurement of
goods and services not requiring a bid.
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To grant the city manager the authority to procure goods and
services for items over $10,000 if those goods or services are
already exempted from the formal bid process as listed in section
2-336 of the code.
Examples of these types of goods and services are:
Goods or services purchased off the state contract, -police vehicles
Sole Source items such as Utilities, -electric and phone charges
Professional services related to a contract, -city attorney
Emergency purchases -vacuum truck service for sewer overflow
Annual maintenance contracts on equipment by manufacturer or
authorized agent - HTE software maintenance agreement
Purchase and contracts for data processing or reproduction -Copy
machine lease agreements with additional copy fees.
Section 2-331 amended -This section sets the dollar threshold for which
the City requires a bid. These changes will require the City to procure
goods and services with a bid when the estimated cost exceeds $10,000.
Currently, there are two limitations; $5,000 for enterprise funds: (Water,
Sewer, Sanitation and Storm Water) and $2,500 for all other funds.
The staff feels that the time and expense involved in the bid process
exceeds the benefit from bidding items of such a small amount. Raising
the bid threshold to $10,000 would enable the city manager to procure
items of a routine nature without the extra step of city commission
approval. Please keep in mind that verbal, faxed and written quotes are a
part of the process of procuring items under the bid threshold and this
practice would continue. The number of quotes obtained before a
purchase varies depending on the dollar amount of the item. On a per item
purchase or for large quantities of like items, the number of quotes
obtained would be as follows:
Up to $500.
From $501 to $2,500
From $2,501 to $5,000
From $5,001 to $10,000
Over $10,000
None required
One additional quote
Two Additional quotes
Three additional quotes
Bid required unless exempted by
section 2-336
Section 2-337 amended -This section called "Open market procedures"
also relates to the bid threshold and assigns the responsibility to the city
manager the requirement to document the purchases which fall below the
bid threshold. This section also is amended to set the threshold at less
than $10,000 from less than $2,500.
Making this amendment also eliminates the inconsistent limits of the
enterprise funds not having to go to bid if items were under $5,000 but not
giving them the authority to by-pass the procedures prescribed in section
2-331 for items between $2,500 and $5,000. The recommendations
eliminate this confusion.
Section 2-338 (1) amended -This section sets the scope of purchasing
authority for the city manager. In order for the city manager to be able to
proceed with the procurement of goods or services below the bid
threshold, it is necessary to grant the city manager the authority to award
contracts and issue purchase orders for those items below the bid
threshold.
The current language in section 2-338 contains the same inconsistency as
the open market procedures section does with respect to the authority of
the city manager to approve purchase orders for items between $2,500 and
$5,000. Raising this limit to less than $10,000 also eliminates this
inconsistency.
Section 2-338 (10) added -This section grants the city manager the
authority to sign and approve purchase orders and contracts for goods and
services in excess of $10,000 without going to the city commission only
when that good or service has been exempted from the bid process as
listed in section 2-336 attached.
BUDGET: No budget impact
RECOMMENDATION:
The City Commission approve the Ordinance amending Section 2 of the
City of Atlantic Beach Code of Ordinances.
ATTACHMENTS: Ordinance amending Section 2 of City f Atlantic Beach Code.
REVIEWED BY CITY MANAGER:
ORDINANCE NO.5-99-32
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
AMENDING CHAPTER 2, ADMIhIISTRATION, ARTICLE VII,
FINANCE, DIVISION 1. GENERALLY, TO PROVIDE THAT
AMENDMENTS TO THE CITY'S OPERATING BUDGET SHALL BE
AUTHORIZED BY ORDINANCE, AND DELETING SEC. 2-318
_- RESERVE ACCOUNT FOR FIRE DEPARTMENT REVENUE;
AMENDING DIVISION 2. PURCHASING TO APPROVE CERTAIN
CHANGES IN THE CITY' S PURCHASING PROCEDURES, AND
PROVIDING AN EFFECTIVE DATE
BE IT ENACTED BY THE CITY COMMISSION ON BEHALF OF THE
PEOPLE OF THE CITY OF ATLANTIC BEACH, AS FOLLOWS:
DIVISION 1. GENERALLY
SECTION 1.
Sec. 2-311. Fiscal year.
The fiscal year of the city is hereby established to begin on October first of each year and
end on September thirtieth of the following year.
Sec. 2-312. 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 budget 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 such income.
Sec. 2-313. Transfers of appropriations.
The city manager may at any time transfer any unencumbered appropriation balance, or
portion thereof, between general classifications of expenditures within an office, department or
agency. At the request of the city manager, the city commission by Sian ordinance may at
any time transfer any unencumbered appropriation balance, or portion thereof, from one office,
department or agency to another office, department or agency.
Sec. 2-314. When contracts and expenditures prohibited.
No officer, department or agency shall, during any budget year, expend or contract 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 pursuant to this
Code. Any contract, verbal or written, made in violation of this Code 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 employment. 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 services for a period exceeding the budget year in which the contract
is made, when the contract is permitted by law.
Sec. 2-315. Encumbrances.
(a) An appropriation shall be obligated for expenses properly chargeable against it as
soon as the expense, or the liability therefor, is incurred. The director of finance shall establish an
encumbrance system where appropriate, as required by the National Committee on Governmental
Accounting, that will accomplish this obligation and shall prescribe methods of documentation
so that an adequate audit trail is available as to the placing, modification and satisfaction or
release of encumbrances. Once encumbered, appropriated funds shall be considered obligated
and unavailable for expenditures (except to satisfy the encumbrance), transfer or reappropriation,
and obligated balances of appropriations remaining undisbursed at the close of the fiscal year
shall be treated as provided in subsection (b). An encumbrance may be modified either to
increase or decrease the amount of funds encumbered by it, but no increase in an encumbrance
shall be larger than the amount of unobligated funds then remaining in the appropriation account.
An encumbrance may be released, in whole or in part, to the extent that the funds so released are
not needed to pay the expense for which they were encumbered, and the funds thus released shall
become unobligated funds in the appropriation account, except funds released from an
encumbrance which is carried over from a prior fiscal year, which shall be treated as provided in
subsection (b).
(b) The encumbered balance of an appropriation account at the end of the fiscal year shall
be carried over to and become a part of the appropriation account for the ensuing fiscal year,
provided that the encumbrances outstanding at year end represent the estimated amount of the
expenditures ultimately to result if unperformed obligations in process at year end are completed.
The carryover of an encumbered balance shall not release or discharge the encumbrances, but it
shall be subject to the provisions of subsection (a) in the ensuing fiscal year, provided that funds
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released from an encumbrance which carried over shall become unappropriated funds in the
beginning fund balance for the ensuing fiscal year. Encumbered balances carried over to the
ensuing fiscal year shall not be reported as expenditures for the previous fiscal year, but as
reservations of fund balance for subsequent fiscal year expenditures.
Sec. 2-316. 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.
Sec. 2-317. Dishonored checks.
The director of finance shall add a service fee of twenty dollars ($20.00) or five (5)
percent of the face amount of the check, draft or order, whichever is greater, for the collection of
a dishonored check, draft or other order for the payment of any licenses, fees, taxes, utility
charges, commissions or charges of any sort authorized to be made under the laws of the state
and this Code or other ordinances of the city. The service fee shall be in addition to all other
penalties imposed by law.
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Secs. 2-319--2-330. Reserved.
DIVISION 2. PURCHASING
SECTION 2.
Sec. 2-331. Bids--When required.
All supplies and contractual services, ,
' ' ' ,when the estimated cost thereof shall exceed ~____ ~,_ _______ ~ r__.. L____ ~___
ten thousand dollars ($10,000) shall be purchased by formal, written contract
from the lowest responsible bidder after due notice inviting proposals. ,
Sec. 2-332. Same--Notices inviting.
Notice of inviting bids shall be published once in at least one (1) newspaper of general
circulation at least five (5) days preceding the last day set for the receipt of proposals. The notice
shall include a brief description of the services or supplies and shall state where bidding
information may be secured and the time and place of opening bids.
Sec. 2-333. Same--Deposits or bonds.
Bid deposits or bid bonds shall be required on all public works construction contracts
with the dollar amount in excess of twenty-five thousand dollars ($25,000.00) except for
maintenance contracts. Bid deposits or bid bonds may be required on all other contracts or
purchase orders. When bid bonds or bid deposits are required, the 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
successful bidder may be required to forfeit any surety or bid deposit required by the city upon
failure on the bidders part to enter a contract within ten (10) days after the award of a contract or
as is otherwise required in the bidding documents.
Sec. 2-334. Same--Opening procedure.
Bids shall be submitted sealed to the city manager and shall be identified as bids on the
envelope. Bids shall be opened in public at the time and place stated in the public notice.
Tabulation of all bids received shall be available for public inspection and shall be filrnished to
all bidders upon request.
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Sec. 2-335. Same--Award of contract.
(a) Lowest responsible bidder. Contract shall be awarded to the lowest responsible
bidder. In determining the lowest responsible bidder, in addition to price, the city commission
shall consider:
(1) The ability, capacity and skill of the bidder to perform the contract or provide the
service required;
(2) Whether the bidder can perform the contract or provide the service promptly, or
within the time specified, without delay or interference;
(3) The character, integrity, reputation, judgment, experience and efficiency of the
bidder;
(4) The quality of performance of previous contract or services;
(5) The previous and existing compliance by the bidder with laws and ordinances
relating to the contract or service;
(6) The sufficiency of the financial resources and ability of the bidder to perform the
contract or provide the service;
(7) The quality, availability and adaptability of the supplies or contractual services to
the particular use required;
(8) The ability of the bidder to provide future maintenance and service for the use of
the subject of the contract.
(b) Tie bids. If all bids received are for the same total amount or unit price, quality and
service being equal, then the contract shall be awarded to one of the bidders by drawing lots in
public.
(c) 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 for a public
improvement as required by Florida Statutes.
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Sec. 2-336. Same--Exceptions.
The formal bid procedure as defined in this division is not required in the following
cases:
(1) When the city commission, by a vote of the majority of those members. present,
waives a formal bid procedure;
(2) When the goods or services to be procured are 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;
(3) Where the services required are for professional, artistic skills or insurance,
pursuant to a written contract;
(4) 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;
(5) 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;
(6) When the goods or services are procured from other governmental agencies or
their contracts;
(7) Purchase and contracts for the use or purchase of data processing equipment or
data processing systems software and reproduction equipment.
(8) When the goods or services are procured from government-related state-wide or
national associations.
Sec. 2-337.Open market procedures.
All purchases of supplies and contractual services of less than the estimated value of-t~
ten thousand dollars ($10,000 may be made in the
open market without newspaper advertisement and without observing the procedure prescribed
by section 2-331 et seq. for the award of formal contracts. The city manager shall keep a record
of all open market orders and orders for the purchase of supplies and services in accordance with
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the Public Records Act of the state and generally accepted accounting internal control
procedures.
Sec. 2-338. Scope of purchasing authority.
The city manager shall have the authority to:
(1) Award contracts within the purview of this division. Provided, that no purchase
order or contract for an amount in excess of
{',fis~60:-66j ten thousand dollars ($10,000) 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 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;
(2) Prepare purchase procedures necessary for the function of purchasing;
(3) Act or procure for the city the highest quality in supplies and contractual services
at least expense to the city;
(4) Discourage uniform bidding and endeavor to obtain as full and open competition
as possible on all purchases and sales;
(5) Establish all rules and regulations authorized by this division and any others
necessary to its operation;
(6) Prescribe and maintain such forms as he shall find reasonably necessary to the
operation of this division;
(7) Prepare and adopt standard purchasing nomenclature for using agencies and
suppliers;
(8) Exploit the possibilities of buying in bulk so as to take full advantage of
discounts;
(9) 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.
(10) A t~ rove purchase orders and contracts in excess often thousand dollars x$10,000)
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when the services or ~?oods are related to items also exempted to the formal bid
procedures as listed in Sec 2-336, except for professional, artistic skills or
insurance, which are in excess of $10,000.
Sec. 2-339. Payments.
Upon receipt of an invoice, confirmed by an approved purchase order and proof that the
materials, supplies or equipment have been received or work completed, the director of finance
shall pay such indebtedness, taking advantage of all discounts allowed.
Secs. 2-340--2-355. Reserved.
SECTION 3. This Ordinance shall take effect immediately upon its final passage and adoption.
PASSED by the City Commission on first reading this day
of , 1999
PASSED by the City Commission on second and final reading
this day of , 1999
JOHN S. MESERVE
Mayor/Presiding Officer
Approved as to form and correctness:
ALAN C. JENSEN, ESQUIRE
City Attorney
ATTEST:
MAUREEN KING
Certified Municipal Clerk
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