HomeMy WebLinkAboutO-083480ROINAWCE AMENbI 1C , :4EC'rttO�t '
Ttln cot* Or Tilt, Ci'31Or', MIAMI
f;tt�-i'{t�'7 `t'tiV,0 "t.1ETn0D dF S F.CUPI ZiC COMt'i1 I'II'rI VE
IzT b1).1: t,to cTh1 c' '.i'C Pj1rTS votl t'i0Pr 1'H:�t1 b1,1
i loasi \Nb DOLLARS; t;>:t.: E; '!i'I OI38 ". y' I1'1' Rt:.r ODI--
:[ ti!3 \D'J8t7`I I SEME TS FOP ' A . CF ILI.IIG 13t t) F 0R
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DCTht,AIRS t
WHEREAS, the present One ;'Thousand Dol lau s ($ 1 , 000 .00)
eei t111C was established in 1945; and
WHEREAS, the previous ceiling of One Thousand Dollars
($1,000.00) is not a realistic figure; and
WHEREAS, the City of Miami could realize a yearly
saving in excess of Twelve Thousand Dollars _ ($12, 000.00) in
advertising and salary costs;
NOW, TIIEP EEO1tE , BE IT ORDAINED BY THE : COMMISSION OF
tfEU1 CITY OF i•MIA2•MI , FLORIDA:
Section 1. Section 16-21 of the, Code of the City of
Miami i, s hereby amended to read: 1/'
Sec. 16-21. Method of securing competitive bidding on
contracts for more than ene-tiaeKeand forty-five
hundred dollars; exceptions;
Except for contracts for local improvements;
under section 56 and sections114 through 129,
inclusive, of the Charter, all contracts for
more than ese-te4Isalia forty-five hundred dollars.
shall be advertised .t least once in a newspaper
of general circulation in the city• Such advertise-
ment shall state that sealed bids will be received
i,y the city manager and city clerk, and shall further
state ate that the city manager shall have the power to
reject al'L bids and advertise again. Where such
aaverti.sement is for work expected to cost more than
eee..k;iekia;iAA forty-five hundred dollars but less
tlian i±=yN-4=1ia sc seventv-live hundred dollars,
the date :;et for [:hc:receiving of sealed bids shall
bo not nar1.ier then five days from the date such
.c.rt i
„, .,sme1�. t appears in the newspaper, and where
advertisement
the work is expected to coat ,seventy-five
hundred dollars or inoro, the date set for the receivtng
of „;c3aled .Iaid:. 14)10.1 t)e not earlier than ten days from
the date such t ►ier,r t i :,n ent: ap[aaour s ill the newspapers.
Sec:ticdn 2, It is _tho intention of the City
eoI! Wi t4si on and it: is hereby ordained that: this section of
1.-21. shall become and be made a part Of the Code of the ei,t.
or Miami,
Scctioil 3,
The neco.c:;i Ly of three competitive
bids be, and is, hereby, eliminated.
Section. 4 : The provisi ens of this ordinance
shall become effective on
PASSED AND ADOPTED this
. 1974:,
Attest:
City Clerk
PREPARED AN
Mikele Carter
Assistant City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
ohn S. Lloyd.
City Attorney.
Words stricken through shall be deleted. Under. scored words,
constitute the amendment proposed. Remaining provisions are
now in effect and remain unchanged.
' MIAMI fteVlEW
•A 1b 6AtL' , fit cofib
PatWhet bail, t eiit shd
Legal 110 iJa .t _ .
bade Cbiiiity, Florida
#Air€ of fti nibA •
Obintil of bAbt
Before the' Undersiggned authority personally • AP.
DOOM' Ruth Glitter, who on bath says that She 13
ASAtstaht„ to, the Publisher, of the Miami ReView Arid
D5lly Record,, a daily6b(except Saturday, Sunday..and
LegaldCounty. Florida sfh t,the attached ccopy of advert•
tiserrlent., being a Legal Advertisement or Notice In;
- the Metter bf
City of Miami
Ott INANCt No .
F1otida
8348
wash the In Said newspaper In the Issues ofu�
Ja.ritX
Aitlant further says that the said Miami 'Review
end Daily Record is a newspaper published at MIemi,
in Said Dade County, Florida, and that the said news-
paper
e a County, Floriida,teachtday (etxceptbSaturday
Sunday and Legal Holidays) and hat been entered as
Second class mail matter at the post office In Warn!,
in said Dade County, Florida. 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 nor promised any person, firm
,or corporation any discount, rebate, commission or
refund for the purpose •y(� curing this advertisement
for publication In�he-sTi�aper.
Nss'Sworn`1 to and subs bed- fore mo, this .
�t
30th oday br Janytrr
(. '�•, Nlarlotie"T St1lth
N�t pobtic St 1n o Iorida
(SEAL).• . Etlt•
My Commission exphatsSapt ber 1, 1977.
e j at Large.
Vitt OP MIAME
bAt1! tOticite r't.brttiiA
t.t hAt, NOttr1:
Ali thtereetari tvitl lake' hotice
that nh the 2.1rd'dny nt Johuei .
19i5 the CninhiriAlnh nt the Citt
of ltitnrnt.' t n tad adopttti nti
ntdihnhce entitl- .
AN •' bRb1NANCF AMtJNh-
lit•, SEet'IOM,. _ i6-21 OF
THE CObt, OF. THE CITY
OF' MtIANtt " F: TtTt.F:b
"atFTilob OF SECGRING
CONiriv~1'T1VE " $tbbiNf
Mont ° tliA:d' O!4i ,'rt1OU'
SAD bO?.LAt1St , F:)iCF:t'+
TtONS", . $Y .F3EQ,i11f1INn
Abi>F.RTtSEitti rg, FOR A
CEILING'
TRACTS FOR 11tORy: THAN
FORTY -Ft- 11t;!r0bRFb
bOLJ.:1RSt':
which .1a denInnnted Otdinn♦ter•
F3•tS.
if, fi, 56etttERN
C1TV C1.FR)C
C1TY' OF MIAM1,
FLORIDA •
PublientS' n nt thin nntiro r,n
the 31:ith tidy of innttnr%•. -1975.
1/n9 'At 11115
I, E Cy i\' L
A.11 interested :ill ttik.e notice that- on the 23rd cdLy,
ah'1at'J 1575 the Commission of the City of :•Iiaiiii FiodS1a adopted an
` e:=
0:�:1i,turic.e e,"it1tl
' -�a. 'OF .� (:(;r)'r: ,t"1S'
fj Fits p
,, •") o F' s E �. Lh.' OY i:,'t -L'f.L �� i',
I�:`:.f.'.i:'.�i,`,il ''i•1:�`ti;..i� . 'i,iF21:i, , C ,
O ORL '1,; rj Ca';:
I�'.C.171?:Ca.: 'I CC?`i=;=�-,,r�[=;;, a•':7C i�F_ � i:'e.
+ L;•�`r,?' 13.S ; ?ti:`tiC't� ''t',CC7i-• S
,t,Ii7li:,t�i .. , rr1� •, t.,.
? : ;TS FOR A Ci t LI 1.i6 i t rl i' :}°C
,`,r ,; ^ TOR V, 7.1.E l It..7\ i OR t t'«F i ty is I F 1:1iDR-i'.'iD
Winch is designated Ordinance No. 8348.
H.D. SOUTI{EPN
CITY CLERIC
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 COM7IITTEE' S
-R'C'1'^.MG9OATIONS. THANKS FOR YOU/ COoPE?ATIvc:‘:.
'tF3ARDS.
GERALD Z FORI'
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