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PROC'f nurI, FOR I,%1'i;tlT7:C TORI�5 " (.'.f i P114 ;'
r:LF"i'iiEi:i 1lU ifRrP i mt..,Ai:L>'', .11`i 17.sTt\1;f,TSTItmG
A. WPM C:i::rLING OrFORTY-P 7VL , fit tI1)12t D
nor T, uu; 1.'C)R C4F.Ni RAL CO .'I'RT C'r . T'ROCL;T)URES ;
1'ItoJI: DT 0G i\N l FF'ECTt Vv DATE..
WHEREAS, the present One Thousand Five. Hundred
Millers ($1,500.00) ceiling was established in 1945: and
WHEREAS, the 'previous ceiling of One Thousand Five
Hundred bollars ($1, 500.00) is not a realistic figure: and
WHEREAS , the City_ of Miami . could realize a, yearly
saving in excess of Twelve Thousand ($12,,000) Dollars in
advertising and salary costs;
NOW,. THEREFORE , BE IT ORDAINED BY 'TIE COMMISSION
OF. TfIE CITY 'bF MIAb1I , FLORIDA
Section 1. Suction 16-20 of the Code of the City
of I•iiami is hereby amend: d to read: 1/
.Sec. 16-20. Gen'eral.Contract Procedure for ex-
penditures exceeding €i€teen forty-five.'
hundred dollars.
All expenditures for supplies, materials,
equipment or contractual, services, except
professional services, amounting to more
" than 'else-tliwieaed-five four thousand five
hundred dollar: shall be made on the basis
'of sealed competitive bids and a written
contract or purchase order as awarded by the
city commission.
i
Scc:tion 2 It is the itltohtioh of the City
Commission sand it is hereby' ordaihect that this :,nc't.ion of
16-20 shalt become _ and be made a part of the code of the City
of Miami
•Section) . .The pr. oVisions Of' this ordinance
shall become effective on._re
-� ^--`_.:.- --- `-7� 't• / ,1!
/ �"a -,,, :�f L .• _ 1.9V..
.�
_PASSED AND.ADOPTED.-this l/
r..
MAYOR
Attest -
City Clerk
PREPARED AND APPROVED BY:
Mikele Carter
Assistant City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
ohn S.:L1oyd
City Attorney
1/ Words, stricken through shall be deleted. Vnderscovecl. words
----- constitute the,.
amendment• proposed. Remaining provisions:
are now in effect and remain unchanged.
•
ORbI NANO �'
Ap 0I2I) . PI CIS AMgMbIN( I'A1tAcRtP11
. i4O, .1.,` S1:C`I'tON" J. G-20'. 01' TI[E CObt Ot. `1 ttt .
01TV OI' t1tr MI _ i;Niq.rrtd:II ''GLNEPJ ri CONmftA
11R00000 FOR ;XtENbi'I'URf6. CXCOLntNC
P:PTPA t1UUbR1 b C STAnti.g 11.Nd
A NEW: C1 ftjING VbRTY41.VE HUNDREb
I)0LLi\RS t Olt GENrRAI, CoN`I'R11cT .'ROCFI)tJRts t
P120Vi t ItJC AN FFFECTI Vi i)t'ri a
WHEREAS, the present one Thousand Five Hundred
bollars ($1,500.00) ceilincl was established in 1945; and.
Wi1EREA8, the previous ceiling of One Thousand rive
•
Hundred Dollars ($1,500.00) is not a realistic figure; and
WHEREAS, the City of Miami coUlcl realize'a yearly
saving in excess of Twelve Thousand ($12,000)'Dollars in
advertising and salary costs;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION
• OF THE CITY OF MIAMI; FLORIDA:
Section 1. Section 16-20 of the Code of the City
of Miami,is hereby amended to read:'1/
Sec. 16-20, General Contract Procedure for ex
penditures exceeding fiftee+ forty-five
hundred dollars. •
All expenditures for supplies, materials,
equipment'or contractual services, except
professional services, amounting to more
than ene-thekieand-five four thousand five
hundred dollars shall be made on -the basis
of sealed competitive bids and a written
contract or purchase order as awarded by the
city. commission.
Section 2= It is the intention of the City
Commission and it is hereby ordained that this sec'tionof
16 =-20 shall. become and be made a part of the Code of the City.
of Miami,
shall become effective on
! ty t.
PASSED AND ADOPTED this .r • clay, of
%t1
M A. Y OR
Attest:..
City. Clerk
`s . prOVisionS,of this ordinance
l g.7_.
PREPARED AND APPROVED BY:
Mikele Carter
Assistant City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
ohn S. Lloyd
City Attorney.
0 beed. Remaining.1Jderscoproved words
Words stricken through shall be deleted.Underscored words.
ns
1 / constitute the amendment•P P
are now in effect andremain unchanged.
2
/.7.
, 19747-
f tti• 'lit' MtA:ttt.
fAtft: tiff' Ctt; €'f.i)ftttf ►
Ntitit't
All ihtr'te5t+4 take hotter,
that an tl:lr 23rd tiny t•t .1nliu$ i .
1976 thO Cnrnrnlertnh nt the City
or Minrni. Flniidn . ndohied; ah
oftiaishhe entitled "
A14 oitbiSiA ci AMEND-
INd pARAr tAri) No. i,
sEctroN16-24 or rti
COnb: OF r11T OTC' OF
MMIAMt) • ENtiTLi b '" (1EN,
tRAL CONTRACT•i'itoCb-
TUttEs AXCt.F L)IN(.1
TEEN 11UNt)1 f D bah,
CARS". BY- tSTABLIS111Nct
A NF W r C`FIL1No. : OF
r O R.r-Y-Fli' 11UNbR£D
DO).LARS FOR G1:i F:RAL
CONTRACT Pitot:EDtJRt:s:
i'RO '1l)1N is "AT3' ' Et1 tC-
t1v1 nAri: , z;
which it deFignnted','Ordihnnr'
No. 834 1"..:.
it i). sOUT11ERN
crrY ct.tr):
CITY 01'.111>1A)t,
FLOR1nA
Publication Of thisbotlen on
the 30th day of 'Jnry nhu. 1976.
t 1,3n •I 11114
1
MIAMI REVIEW
ANB BAIL%- ft 8 B
Fetid bd�i� tcept 5aia�$aq;fdtiid� arsr#
Lrigat fields
Mi bads tat*, naiad
Ii Ali 6f MAMA
16A
eatorty o bAbt i
•
§etore the. Undersigned adtbofit• faitillY eD
�$tt5d Ruth (hatter . w d oii dith sylys that She s
Asaistaht.„ to the Pu61ishet of the Mlerrti Review find
Daily Record, a daily,sb(except_ Saturday. ,Sundaylt . attd
n
Dade totoihtyFloiida; that athepattached bony, f 'edvI ef
• tlftrne Matter being a Legal Advertisement of Notice In •
Gigs .of Miatii r'lotida
47
in the XR lour:.
was published in said newspaper In the Issues of
t7aritiaty 3 b 1 1578
Affient further says' that ,the said Miarni' Ftevlaw
and Daily Record is a newspaper published at Miami.
In said Dade County, Monde, and that the Said news-
paper has heretofore been continuously published in
said Dyade County; Florida, each day (except Saturday.
as r
second classlmail matter at the pnd ost officeein Miemi,
In said Dade County, Flotida, for a period of one year
next preceding the first publication of the attached
copy of. advertisement: and affiant further says, that
she has neither paid not promised any person, firm
or corporation any discount, rebate, commission or
refund for the purpose of securing. this advertisement
tot publication In faze e paper.
30th
(SEAL) , I
My Comritisslon e
•
ore me this
197.r�.....
th
orida at Large..
er 1, 1977.
L E O A L F b t I C t
All interested will take tiotioe that: on the 23rd day of
January, 1975, the Commission of the City .of. ffl ami r riortda adopted aft
ordihande ehtitled
j
AM' .onthAt;c8 no .. ,18CTt oar 1. G- 20 ' c , ;'rr rl . CODE or 'rng
C:rrr . OF tIrAMI n TTTLEL' `'(%E[vERAt. CONTR?iC"`
PR OCCOU1;I; PoR E P8liD1rI.sul;I S txCEED=. -
'c•':CL',Y8EN }IU::+ nr,D DOL` \RS" , : I3Y ITITAEi,181- NG
11 KEi': CE1I.I 0.0I' p:OR.I'—FIVE !UNDREt)
DOLLiAI?S FOP OE,_ ERAL .CONTRACT PnOCE1UR111S 3
PROV �.OING An'tFnCrPIVS OATS
which is designated Ordinance No. 8347.
II.D. SOUTIHERN,
CITY CLERK
CITY OF MIAMI,. FLORIDA .
TO
FROM
CITY or rLORID A
INTER -OFFICE MEMORANDUM
l-Ionoral)le Members of
The City Commission
/efrkotat4-01.s.4.4.
P. W. Andrews
City Manager
UAfE
SUDJEC.1.
fit- FERENCES
E.NCLO3URES:
hEC 1 0 1974
Proposed Adjustment in the
Formal Bid Ceiling
As a matter of convenience,. I am transmitting copies of previous
correspondence, reference the proposed adjustment in the formal
bid ceiling.
cc:
Honorable Maurice A. Ferre, Mayor
Honorable J. L. Plummer, Jr., Vice Mayor
Honorable Theodore R. Gibson
Honorable Rose Gordon
Honorable Manolo Reboso
FILE
Ctii o MtAMti, fLts#IbA
INtER-Dr rIcE MEMOrIANf UM
Honorable :Members of
the City Commission
P. W. Andrews
City Manager
bAtEt
611nJEett
Zvi` $ 1 1974
P.aising the Formal Bid Ceiling
and the Elimination of Three Bid
Solicitation
REirtRENCE!t:
ENcLOlURE3t
Fact Sheet (1)
Fact Sheet (2)
Recent analysis in the Finance Department by one of the Manage-
ment Analyst Intern Tarns revealed additional information
previously unrecognized with regard to the need for raising the
formal bid ceiling above the current $1, 500 level. This analysis
also revealed that considerable cost avoidance opportunity exists
in the current procedure of processing purchases of a low cost
nature ($25 or less) which require the same handling as do pur-
chases of far greater value e.g., $900 purchase.
Substantiating information contained in the two Fact Sheets attached
to this memorandum outlines the cost avoidances and benefits which
would accrue to the City of Miami by (1) raising the formal bid
ceiling from $i, 500 to at least $4, 500 with a cost of living clause
based on the Consumer Price Index to be included; and, (2) elim-
inating the soliciting of a minimum of three bids on purchases of
$25 or less.
The cost avoidances realized through raising the formal bid ceiling
to at least S4, 500 would conservatively be $12, 000 per year; and
should the Purchasing Division no longer be required to solicit a
minimum of three bids on purchases of $25 or less, a minimum
cost avoidance of $5, 500 annually could reasonably be expected.
I am requesting that the City Attorney prepare the necessary ordi-
nances, for the Commission's consideration, for raising the formal
bid ceiling and eliininating the three bid requirement.
cc: City Attorney
Director of Finance
FACT SHEET (1)
1tAISING. THE FORMAL BID CEILING,
i. ,The Increasing Numuer of Purchases Which Must Be Processed Through.
the Formal. Bid Procedure is Gonr,urnin r Valuable Staff Time and Causing
Expensive Delays at the Department Level,
This increase, in the number of purchases which must be processed through
the formal bid procedure, is largely clue to the higher cost of supplies,
materials, and equipment. Unfortunately, the formal bid ceiling has not been
in step with increase s •in the cost of living. As shown in the following example,
the increase in the number of formal bids.has been dramatic --over 100%
during the past four years.
Fiscal Year Formal Bids
1970-71 80
1971-72 110
1972-73 137
1973-74 175
1974-75 204 (estimated)
The Consumer Price Index (base year 1967 = 100) has risen from 53. 9 in 1945,
when the current $1, 500 ceiling was adopted by the City of Miami, to 151.9 in
September, 1974, nearly a 200% increase. Although this in itself is a convincing
argument, there are still other considerations which reinforce the need for an
increase in the bid ceiling to at least $4, 500 including:
It is forecasted that 42. 3% or 87 of this year's Formal bids will fall
between $1, 500 and $4, 500
•
•
Advertising costs alone are $60 per bid
Cost avoidance in advertising and manhours required would be in
excess of $12, 000 per year
There would be a considerable reduction in the amount of time
required by the City and the City Commission to process formal bids
Departments will benefit through more expeditious delivery of
purchases in the $1, 500 to $4, 500 range
More competition between bidders would occur as smaller companies
could submit informal. bids. Many small vendors who could fill
orders cannot afford the bid security
Page 1 of 2
The forrnal bid procedure requests that vendors guarantee this
quoted price for a period of 90 days. Consequently) many
vendors are refusing to submit bids) frequently resulting, in
only one or no vendors making a bid,
,A $5, 000 bicl ceiling is recommended by the International City
1vi,`!na ger'S Association 6?:h t'klitio'll of "Mutucip l Finance Admin.-
istration" published in 1962.
Examples of bid ceilings in other Florida cities are:
Fort Lauderdale
Jacksonville
Pornpan'o' Beach
- North Mimi
Tampa ' ' •
$5, 000
$4, 000
$5, 000
$5,000
$2, 500 (Being raised to $5, 000)
2. For the Foregoing Reasons it is Recommended That the Formal Bid Ceiling
Be Raised to $4,'500 with a Cost of Liv .ng Clause to be Included
It may appear that increasing the ceiling from $1, 500 to $4, 500 and the •
inclusion of a cost of living clause is a bold step; it is, but it certainly is not
one without precedent. Nor is it believed that there will be any loss in con-
trol, quite the contrary;- for it should provide: •
Better competition
More rapid processing of bids
Reduce 'costs
Provide expeditious delivery of purchases
It should he remembered that the City Manager's approval will continue to be
required for all purchases in excess of $1, 000. Furthermore, all purchases,
except in the most unusual circumstances, have already been approved by
the City Commission's adoption of the budget.
".%,a aa[~IrtlaMeNtiWacd; z r r, x
Page 2 of 2
•
FACT SHEET (2)
ELIMINATION OF' _THREE IiID SOLICITATION
Elimination of Quotes on Requisitions Amounting to $25 or Less Would
Reduce Man Hours Required for Telephoning and Expedite the Purc'tia:;i.nr,
Process
Approximately one third of all requisitions are for items of low unit cost and
low volume nature, e.g., desk pad ink blotters. It is not uncommon for
these requisitions to be for a. total amount of $25 or less.. Frequently these
requisitions amount to only a few cents. However, the requirements are
such that it is expected that at least three vendors be contacted for price
quotes. This does not necessarily infer that only three vendors be contacted
as some vendors may not stock or have on hand the desired item. Under the
present circumstances it is necessary for two purchasing employees to work
full time and a third employee, half of his time, to contact vendors for price
quotes.
Three price quotes are required for these low
cost, low volume purchases under the present system
Approximately 1/3 of all requisitions are for $25
or less
It is recommended that only those requisitions for more than $25 require the
obtaining of a minimum of three quotes.
Anticipated benefits are:
The number of calls for bids would be reduced by at
least 25%
•
More expeditious processing of requisitions would
result from the elimination of quotes for those of low
unit cost and low volume
Cost avoidance because of man hours saved is estimated
to be at least $5, 500 annually
Page 1 of 1
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TM5.: k'ONPARTXSAN VOLUNTA'?Y CITIZ! S' ACTION COtl'MITTE ' TO
FIT I'N'~L ATION HAS PECO,Mm!F.:!,nED a 1O-"OI?,T PROGRAM WHICH I
PLAN T1 PASS ON TO THE NATION) IN A TELEVISED SPEECH IN KANSAS
CITY 'rt}ESDAY OF THEIR RECOMM�'DATIONS
It;PLEME9TE'0 BY STATE AND LOCAL AUTHO'?ITIES:
(1) CO9SE�VE !E?CY h•Y ':''FORC??'.3 TrT'' 55-MILE PER HOUR SPEED
' I:' IT AND (2) T.•t T`nIN.1TE O'JTMO"''� ar•- J1-►�''TQ'IJ THAT KEEP COSTS
2_7 r)r'nS AND SEA �r7';H A"}i)rE3ULAiIONS T}!A,
'\')V'{`!CE 'EFFICIENCY, HEATH A';^ SAFETY. THE CO?VITTEE ALSO
ACKE!) '1E TO CALL !'PON A! L GOVEZ.')O 3S, r?AYO2S AND OTHER
LOCAL :OFFICIALS TO SET 'IP SI"!IL t? ? VOL'J?,TA ZY CITIZ'+:')S' ACTION
C7:�:IITTEES TO FIGHT INFLATION I'' TF!E STATES AND COMMUNITIES.
I '.Z) w YOU TO ASSIST PY PRO"2 T ACTIO') ON THE COM71ITTEE' S
-R'C'1'^.MG9OATIONS. THANKS FOR YOU/ COoPE?ATIvc:‘:.
'tF3ARDS.
GERALD Z FORI'
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