2014-3895 Ordinance ORDINANCE NO. 2014-3895
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY
CODE, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE VI,
ENTITLED "PROCUREMENT," BY AMENDING DVISION 3, ENTITLED
"CONTRACT PROCEDURES," BY REPEALING SECTION 2-372,
ENTITLED "PROCEDURE TO PROVIDE PREFERENCE TO MIAMI
BEACH-BASED VENDORS IN CONTRACTS FOR GOODS AND
CONTRACTUAL SERVICES"; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
WHEREAS, Section 2-372 of the City Code provides that Miami Beach-Based vendors
be provided a preference in contracts for goods and contractual services; and
WHEREAS, with the exception of a few industries (primarily tourism and entertainment
related), the ability of local vendors to supply the goods and services required by the City of
Miami Beach is very limited, and,
WHEREAS, given the reduced industry base within the City, a very small percentage of
the City's contracts for goods and services are awarded to local vendors resulting in very little
impact of the local preference ordinance on the City's local economy; and
WHEREAS, an unintended consequence of local preference ordinances is that they tend
to discourage non-local vendors from participating in the City's procurement projects as
evidenced, especially in construction procurements, by limited competition for many of the
competitive etitive solicitations (despite significant outreach efforts to increase competition); and
WHEREAS, to address the lack of competition concerns in construction procurement
projects, the Administration has been working with the Associated Builders and Contractors —
Florida (ABC), the local chapter of the national trade association for the construction industry;
and
WHEREAS, ABC has reported to the City that many of its member companies are
averse to participating in competitive solicitations that include local preference requirements and
are issued by municipalities in which the vendor does not have a local office; and
WHEREAS, both the National Institute of State Procurement Officials (NASPO) and the
National Institute of Governmental Procurement (NIGP) have opposed local preferences laws
as impediments to the cost effective procurement of goods, services and construction in a free
enterprise system; and
WHEREAS, the Administration believes that, while well-intentioned, the City's local
preference procedure creates challenges to maximizing competition on City procurement
projects; and
WHEREAS, at its February 21, 2014, the Finance and Citywide Projects Committee (the
"Committee") endorsed the recommendation by the Administration to implement certain
revisions to the City's Procurement Code, including a recommendation to repeal Section 2-372
of the City Code, entitled "Procedure to Provide Preference to Miami Beach-Based Vendors in
Contracts for Goods and Services"; and
WHEREAS, on April 23, 2014, the City Commission accepted the Committee's
recommendation and authorized the Administration to implement the Procurement Code
revisions, which include repeal of Section 2-372 of the City Code.
NOW, THEREFORE, DE IT DULY ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. That Section 2-372 of Division 3, Article VI, of Chapter 2 of the Miami Beach City
Code is hereby repealed in its entirety as follows:
CHAPTER 2
ADMINISTRATION
ARTICLE VI — PROCUREMENT
DIVISION 3—CONTRACT PROCEDURES
(b) Mian7i BeaGh based ven6or- means a biddeF that (i) has a valid busine6s ta*
��n..TUa 7�e-VTR hid, whinh a thnrize said yend9F to nrnvide the c ubj
and/nr nnntFaGt, al Geniinec• + ;d (ii) has, fnr at lea t nne yeaF nrinr to the
�i.T
,
final.
2
eF state law mandates to the Ge_ntFaFy t
BeaGh based + whe as within five peFGent ef the lewe6t and best t
ethe ' , lal With FespeGt te quality and seFViGe, then the awaFd shall bee
BeaGh based vendeF6 have the same numbeF ef its eFnpleyee6 that aFe MiaMi
BeaGh Fesidents, then the awaFd shall be made to the Miami BeaGh bas
business ent
i
l��n tanGes ��,here SUGh aGtien ha6 been delegated to the Earl. gerl in
Ti-1�� i7L7TrT7LrJ�Jta G7T—Q'�'G /+
+
deteFMiRiRg, +ging the evaluatien- m.
seleGtieR GFfte er f-aGtnr6 deterr►�iner) by the Gait" to be�tC t
+ t + + +
Of SUGh evaluation + +
I,+rJerl �e,ithin the DCD DCr1 OF DCI I d9G+ meR
+ + /
and give an additienal five peint6 (wheFe the evaluation methedelegy 66 based
t 9F an additieRal five peFGent (wheFe the
+
+ appliGable,
+ t
Fespense y and fitness of all t
R, as appliGable,
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
3
SECTION 3. SEVERABILITY.
If any section, sentence, clause or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect
the validity of the remaining portions of this ordinance.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this ordinance shall become and be made a part of the
Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or
re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section,"
"article," or other appropriate word.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect the as day of 2014.
PASSED and ADOPTED this /0 day of 2o�etw btoc�� , 2014.
ATTEST:
•o
PHILIP LEVINE,'4M
RAFAIEL E. GRANA O, CITY CLERK
Underline denotes additions
denotes
�. • QA
a :INCORP ORX ED:
2 b
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
City Attorney ID a
4
COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Of The Mayor And City Commission Of The City Of Miami Beach,Florida,Amending Chapter 2 Of
The City Code, Entitled"Administration,"By Amending Article VI,Entitled"Procurement,"By Amending Dvision 3,
Entitled"Contract Procedures,"By Repealing Section 2-372,Entitled"Procedure To Provide Preference To Miami
Beach-Based Vendors In Contracts For Goods And Contractual Services";Providing For Repealer,Severability,
Codification, And An Effective Date Second Reading).
Key Intended Outcome Supported:
Supporting Data (Surveys, Environmental Scan,etc: N/A
Item Summa /Recommendation:
Section 2-372 of the City Code requires a preference to be awarded in City competitive solicitations for Miami
Beach based bidders.While the local preference is well-intentioned, it also creates some challenges. First,with
the exception of a few industries (primarily tourism and entertainment related), the ability of local vendors to
supply the goods and services required by the City is very limited;therefore,a very small percentage of the City's
contracts for goods and services are awarded to local vendors.As a result,the local preference requirement has
very little impact on the City's industry base.Second,an unintended consequence of local preference ordinances
is that they tend to discourage non-local vendors from participating in the City's competitive solicitations.In recent
years,the City has experienced limited competition for many of the competitive solicitations it receives despite
significant outreach efforts to increase competition. This reality is especially true for competitive solicitations
relating to construction projects. To address the lack of competition concerns in construction contracting, the
Administration has been working with the Associated Builders and Contractors—Florida(ABC),the local chapter
of the national trade association for the construction industry. ABC has reported to the City that many of its
member companies are averse to participating in competitive solicitations that include local preference
requirements and are issued by municipalities in which the vendor does not have an office because of the time
and effort that is required of these solicitations and the likelihood that the solicitation will be awarded to a local
vendor.
Accordingly,competition on competitive solicitations becomes limited and,overtime,may result in a very limited
pool of bidders. For these reasons, both the National Institute of State Procurement Officials(NASPO)and the
National Institute of Governmental Procurement(NIGP)have opposed local preferences laws as impediments to
the cost effective procurement of goods, services and construction.
At its February 21, 2014, the Finance and City-Wide Projects Committee (the "Committee") endorsed the
recommendation by the Administration to repeal Section 2-372 of the City Code, entitled"Procedure to Provide
Preference to Miami Beach-Based Vendors in Contracts for Goods and Services." On April 23, 2014, the City
Commission authorized the Administration to implement the procurement ordinance revisions approved by the
Committee,which included repeal of Section 2-372 of the City Code.
CONCLUSION
To improve competition on the City's competitive solicitations and allow the City to cooperate with other local
municipalities on joint procurements for like items in an effort to maximize aggregated volume discounts, the
Administration recommends eliminating local preference requirements. In its alternative, the City Commission
may, on a case-by-case basis, consider implementing local preference when it has been determined that a
sufficient number of potential local bidders are available to compete on a given procurement solicitation.
RECOMMENDATION
Approve the Ordinance.
Advisory Board Recommendation:
At its February 21, 2014, the Finance and City-Wide Projects Committee approved the recommendation.
Financial Information:
Source of Amount Account
Funds: 1 N/A N/A
2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Alex Denis, Extension 6641
Sign-Offs:
De art Director Assistant, er City er
AD MT JLM
TAAGENDA\2014\July\ rocurement\Repeal Local Preference SUM RY.docx.doc
101AMIBEACH AGENDA ITEM
DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSI MEMORANDUM
TO: Mayor Philip Levine and Members of a City Co ission
FROM: Jimmy L. Morales, City Manager
DATE: September 10, 2014
SUBJECT: AN ORDINANCE OF THE MAYO AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AME DING CHAPTER 2 OF THE CITY CODE,
ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE VI, ENTITLED
"PROCUREMENT," BY AMENDING DVISION 3, ENTITLED "CONTRACT
PROCEDURES," BY REPEALING SECTION 2-372, ENTITLED "PROCEDURE TO
PROVIDE PREFERENCE TO MIAMI BEACH-BASED VENDORS IN CONTRACTS
FOR GOODS AND CONTRACTUAL SERVICES"; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE (SECOND
READING).
BACKGROUND
Section 2-372 of the City Code requires a preference to be awarded in City competitive
solicitations for Miami Beach based bidders. While the local preference is well-intentioned, it
also creates some challenges. First, with the exception of a few industries (primarily tourism
and entertainment related), the ability of local vendors to supply the goods and services
required by the City is very limited; therefore, a very small percentage of the City's contracts
for goods and services are awarded to local vendors. As a result, the local preference
requirement has very little impact on the City's industry base. Second, an unintended
consequence of local preference ordinances is that they tend to discourage non-local vendors
from participating in the City's competitive solicitations. In recent years, the City has
experienced limited competition for many of the competitive solicitations it receives despite
significant outreach efforts to increase competition. This reality is especially true for
competitive solicitations relating to construction projects. To address the lack of competition
concerns in construction contracting, the Administration has been working with the Associated
Builders and Contractors — Florida (ABC), the local chapter of the national trade association
for the construction industry. ABC has reported to the City that many of its member companies
are averse to participating in competitive solicitations that include local preference
requirements and are issued by municipalities in which the vendor does not have an office
because of the time and effort that is required of these solicitations and the likelihood that the
solicitation will be awarded to a local vendor.
Accordingly, competition on competitive solicitations becomes limited and, over time, may
result in a very limited pool of bidders. For these reasons, both the National Institute of State
Procurement Officials (NASPO) and the National Institute of Governmental Procurement
(NIGP) have opposed local preferences laws as impediments to the cost effective
procurement of goods, services and construction.
Commission Memorandum—Repeal of Local Preference Ordinance
September 10, 2014
Page 2
At its February 21, 2014, the Finance and City-Wide Projects Committee (the "Committee")
endorsed the recommendation by the Administration to repeal Section 2-372 of the City Code,
entitled "Procedure to Provide Preference to Miami Beach-Based Vendors in Contracts for
Goods and Services." On April 23, 2014, the City Commission.authorized the Administration to
implement the procurement ordinance revisions approved by the Committee, which included
repeal of Section 2-372 of the City Code.
CONCLUSION
To improve competition on the City's competitive solicitations and allow the City to cooperate
with other local municipalities on joint procurements for like items in an effort to maximize
aggregated volume discounts, the Administration recommends eliminating local preference
requirements. In its alternative, the City Commission may, on a case-by-case basis, consider
implementing local preference when it has been determined that a sufficient number of
potential local bidders are available to compete on a given procurement solicitation.
RECOMMENDATION
Approve the ordinance.
JLM / MT/AD
T:\AGENDA\2014\September\Procurement\Repeal Local Preference MEMO(2ND READING).doc
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