2003-3390 OrdinanceORDINANCE NO. 2003-3390
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE
CODE OF THE CITY OF MIAMI BEACH ENTITLED
"ADMINISTRATION"; BY AMENDING ARTICLE VI THEREOF
ENTITLED "PROCUREMENT"; BY AMENDING DIVISION 3 ENTITLED
"CONTRACT PROCEDURES"; BY AMENDING SECTIONS 2-367 AND
2-369; SAID AMENDMENTS RESPECTIVELY: 1) PROVIDING THE
CITY MANAGER WITH THE AUTHORITY TO REJECT ALL BIDS
WITHIN CERTAIN PARAMETERS; 2) PROVIDING FOR THE
ADMINISTRATION TO NEGOTIATE ON CONSTRUCTION PROJECTS
WHEREBY THE LOWEST AND BEST BIDDER EXCEEDS THE
BUDGETED AMOUNT; AND 3) PROVIDING THE CITY MANAGER
WITH THE AUTHORITY TO APPROVE PURCHASES OF
COMMODITIES, MATERIALS, SUPPLIES OR OTHER ITEMS ON A
CONTINUING BASIS FROM CONTRACTS AWARDED BY THE
SCHOOL BOARD OF MIAMI-DADE COUNTY; ALSO PROVIDING FOR
REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.
WHEREAS, the Administration, in conjection with the City Attorney's
Office, has been working on certain amendments to the City's Procurement
Ordinance, as codified in Article VI, Division 1, Sections 2-311 through 2-410,
that would serve to expedite the day to day implementation the City's
procurement process, while safeguarding the integrity of the overall competitive
bidding process.
WHEREAS, at its regular meeting on December 20, 2002, the
Community Affairs Committee reviewed and discussed certain procurement
process initiatives and enhancements, and recommended the following
amendments to the City Code.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows:
SECTION 1: That Chapter 2 of the Code of the City of Miami Beach entitled
"Administration"; Article VI thereof entitled "Procurement"; Division 3 entitled
"Contract Procedures", and Sections 2-367 and 2-369 are all respectively
amended as follows:
ARTICLE VI. PROCUREMENT
DIVISION 3. CONTRACT PROCEDURES
Sec. 2-367. Rejection of bids; negotiation; waiver of competitive bidding.
(a) Except as further provided under subsections 2-367 (b) and 2-367 (c)
below, generally, i~,f a bid is $25,000.00 or less, the City Manager shall have the
authority to reject any and all bids. Except as further provided under subsections
2-367 (b) and 2-367 (c) below, generally, i[f the bid is in excess of $25,000.00,
the City Commission shall have the authority to reject any and all bids.
(b) Where only one bid response is received, and/or the bid exceeds the
budgeted amount, the City Manager, without any action by the City Commission,
shall have the power to select one of the fo lowing options:
(i) Reject the bid and, if he determines that same is in the best interest
of the City, readvertise the item for bidding; or
(ii) Request that the City Commission make additional funds available
and proceed to negotiate an agreement with the sole bidder.
(c) Notwithstanding subsection 2-367 (b) above, in bids for municipal
construction proiects, where the lowest and best bid exceeds the budgeted
amount allocated toward the construction cost of the project, the City Manager,
without any action by the City Commission, shall have the power to negotiate an
agreement with the lowest and best bidder exceeding the budgeted amount of
the work. If the City Manager is unable to successfully negotiate an agreement
with the lowest and best bidder, the City Mana.qer may terminate ne.qotiations
with such bidder and commence negotiations with the second lowest and best
bidder. If the City Manager is unable to successfully negotiate an agreement
with the second lowest and best bidder, the City Mana.qer may terminate
negotiations with the second bidder and commence negotiations with the third
lowest and best bidder.
/"~/,~ The procurement director, with approval of the city manager, for contracts
of $25,000.00 dollars or less, or the city commission, by simple majority vote, for
contracts, in excess of $25,000.00, shall have the power to negotiate those
contracts and purchases where only one bid r~cpcr, cc:
eP, ly-e¢~ source for the product or service is evident. A sole-source purchase
shall be defined as goods and/or services for which the availability of multiple
vendors who could compete as bidders is precluded. Before any sole-source
purchase can be made, the using agency shall submit justification in writing,
together with all supporting documentation, to the procurement director, stating
that the proposed supplier is the only source of supply of the desired goods
and/or services, and that there is no other supplier or authorized repaidservice
center (as applicable). The supporting documentation shall include a written
quotation with terms and conditions of sale. In addition, the using agency shall
obtain the written determination from an industry expert or consultant that the
item or service is the only one available to fulfill the city's need. For purposes of
this article, trademarks alone, and commodity type products, lacking
differentiating characteristics from similar products, shall not be considered for
sole-source purchases.
(e) The city commission, upon written recommendation of the city manager,
may by resolution adopted by a five-sevenths vote of the city commission waive
competitive bidding when the city commission finds such waiver to be in the best
interest of the city. In the event of such a waiver the city commission may
authorize the execution of a negotiated contract.
(Code 1964, § 31^-10; Ord. No. 96-3065, § 1, 12-18-96; Ord. No. 2001-3290, §
1, 1-31-01)
Sec. 2-369. Award of contract.
All contracts, when the sum is $10,000.00 or less, shall be awarded by the
procurement director to the lowest and best bidder. All contracts, when the sum
is in excess of $10,000.00 and not exceeding $25,000.00 shall be awarded by
the city manager, or his designee, to the lowest and best bidder. When the
amount of a contract is in excess of $25,000.00, the city commission shall award
the contract to the lowest and best bidder, or may delegate to the city manager
the power to award such contract to the lowest and best bidder; however, the
purchase of commodities, materials, supplies or other items on a continuing
basis from Metropolitan-Dade County; or from the School Board of Miami-Dade
County, or from state or federal general services administration bid lists may be
approved by the city manager without any action by the city commission, even
though the total cost of such commodities, materials, supplies or other items may
exceed $25,000.00 over a one-year period. In determining the lowest and best
bidder, in addition to price, there shall be considered the following:
(1) The ability, capacity and skill of the bidder to perform the contract.
(2)
Whether the bidder can perform the contract 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 contracts.
(5) The previous and existing compliance by the bidder with laws and
ordinances relating to the contract.
(Code 1964, §§ 31A-12, 31A-19; Ord. No. 2001-3290, § 1, 1-31-01)
SECTION 2. 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 part of the Code of the City of Miami Beach, Florida. The sections of
this ordinance may be renumbered or relettered to accomplish such intention,
and the word "ordinance" may be changed to "section", "article", or other
appropriate word.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 4. SEVERABILITY.
If any section, subsection, sentence, clause, phrase or portion of this Ordinance
is, for any raason, held invalid or unconstitutional, such portion shall be deemed
a separate, distinct and independent provision and such holding shall not affect
the validity or constitutionality of the remaining portions of this Ordinance.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the
which is 10 days after adoption.
PASSED and ADOPTED this 5th
15th ~ of
/~TTEST:
City Clerk
WORDS STRICKEN THROUGH SHALL BE
CONSTITUTE THE AMENDMENT PROPOSED.
EFFECT AND REMAIN UNCHANGED.
February ,2003
~a:ry , 2003.
/
DELETED. WORDS UNDERSCORED
REMAINING PROVISIONS ARE NOW IN
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APPROVED A~ TO
FORM & LANGUAGE
& FOR EXECUTION
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Amending Chapter 2 of the City Code entitled "Procurement", as follows: 1 ) Provides the
City Manager with the Authority to Reject all Bids within Certain Parameters; 2) Provides for the
Administration to Negotiate on Any Construction Project Whereby the Lowest and Best Bidder Exceeds the
Budgeted Amount; and 3) Provides the City Manager with the Authority to Approve Purchases of
Commodities, Materials, Supplies or Other Items on a Continuing Basis from Contracts Awarded by the
School Board of Miami-Dade County.
~$$Ue:
IShall the City Commission Approve the Proposed Amendments to Chapter 2 of the City Code?
Item Summary/Recommendation:
The proposed amendments are designed to: 1 ) expedite the issuance of a new bid; 2) reduce the number
of items referred to City Commission which can be addressed by the City Manager without compromising
the formal bidding requirements; and 3) ensure that the City obtains the lowest possible cost, and that
there are no delays in the completion of construction projects.
Advisory Board Recommend=_t!on:
IThe proposed amendments were discussed and recommended for adoption by the Community Affairs
Committee at their December 20, 2002 meeting. Additionally, the proposed amendments were approved
on first reading by the Mayor and City Commission at its meeting of January 8, 2003.
Financial Infom~ation:
Source of Amount Account Approved
Funds: 1
2
3
4
Finance Dept. Total
City Clerk'e Office Legislative Tracking:
I Gus Lopez, extension 6641.
Sign-Offs:
I De:~ent Director
Assistant City Manager [
I MDB~~~MO
City Manager
T: AGENDa 2003\feb0503\regular SummaryProcurementOrdinance.doc
AGENDA ITEM
DATE ~"~
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 · ~
www.ci.miami-bea ch .fl .us ~
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: February 5, 2003
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez
City Manager
SECOND READING - PUBLIC HEARING
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI
BEACH ENTITLED "ADMINISTRATION"; BY AMENDING ARTICLE V! THEREOF
ENTITLED "PROCUREMENT"; BY AMENDING DIVISION 3 ENTITLED "CONTRACT
PROCEDURES"; BY AMENDING SECTIONS 2-367 AND 2-369; SAID AMENDMENTS
RESPECTIVELY: 1) PROVIDING FOR THE CITY MANAGER WITH THE AUTHORITY TO
REJECT ALL BIDS WITHIN CERTAIN PARAMETERS; AND 2) PROVIDING FOR THE
ADMINISTRATION TO NEGOTIATE ON ANY CONSTRUCTION PROJECT WHEREBY
THE LOWEST AND BEST BIDDER EXCEEDS THE BUDGETED AMOUNT; AND 3)
PROVIDING THE CITY MANAGER WITH THE AUTHORITY TO APPROVE PURCHASES
OF COMMODITIES, MATERIALS, SUPPLIES OR OTHER ITEMS ON A CONTINUING
BASIS FROM CONTRACTS AWARDED BY THE SCHOOL BOARD OF MIAMI-DADE
COUNTY; PROVIDING FOR REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Adopt the Ordinance.
ANALYSIS:
On December 20, 2002, the Community Affairs Committee reviewed and discussed
procurement process initiatives, enhancements, and proposed amendments to the City Code.
Additionally, the Mayor and City Commission at its January 8, 2003 meeting, approved on first
reading, the attached proposed Ordinance which is designed to: 1 ) expedite the issuance of a
new bid; 2) reduce the number of items referred to City Commission which can be addressed
by the City Manager without compromising the formal bidding requirements; 3) ensure that the
City obtains the lowest possible cost, and that there are no delays in the completion of
construction projects.
1. Authority to reject bids.
Current Process: Pursuant to Section 2-367 of the City Code, if the RFP, RFQ, or Bid results
are in excess of $25,000, the City Commission has the authority to reject any and all
proposals, qualifications, or bids. This requires the preparation of a commission memorandum
and resolution prior to issuance of a new bid, which delays the re-issuance of a new bid by 2-4
weeks.
Proposed Chanqe: Amend the City Code to allow for the City Manager to reject any and all
bids, within the following parameters:
a. Lowest and best bid exceeds the budget; and/or
b. Only one bid or proposal was submitted.
2. Authority to Negotiate with the Lowest and Best Bidder.
Current Process: Pursuant to Section 2-367 of the City Code, if the lowest and best bid
exceeds the budgeted amount allocated towards the construction cost of the work which has
been competitively bid in major municipal projects, the City Manager or his designee with
approval of the City Commission shall have the power to negotiate an agreement with the
lowest and best bidder exceeding the budgeted amount of the work. The City Code defines
major municipal projects as those projects whose project costs exceed $5 million.
Proposed Change: Delete reference to "major municipal projects" in order to allow the
Administration to negotiate all bids whereby the lowest and best bid exceeds the budgeted
amount. This will provide the Administration with an opportunity to deliver projects in a timely
manner within the budgeted amount, thus saving taxpayers dollars. If the Administration is
unsuccessful in negotiating the project within the budgeted amount, and should no additional
funds be made available, then rejection of all bids will be referred to the City Commission.
3. Utilization of the School Board of Miami-Dade County contracts pursuant to Section
2-369 of the City Code.
Current Process: The City Manager may without action by the City Commission, purchase
commodities, materials, supplies, or other items, on a continuing basis from Miami-Dade,
State, or Federal General Services Administration (GSA) bid lists.
Proposed Change: Including the School Board of Miami-Dade County, the fourth largest
public education system in the United States, as part of the agencies that may be utilized
pursuant to Section 2-369 of the City Code, for the purchase of commodities, materials,
supplies, or other items on the bid lists.
The proposed amendments were discussed and recommended for adoption by the
Community Affairs Committee at their December 20, 2002 meeting.
The attached Ordinance was approved on first reading on January 8, 2001, and scheduled for
a second hearing for the City Commission meeting of February 5, 2003.
The Administration recommends that the Mayor and City Commission adopt the attached
Ordinance.
JMG:MDB:GL
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