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HomeMy WebLinkAbout08-118 RESOLUTION NO. 08-118 (øpv k;.' n~d~l~ {II14---6 , +- .ha.Att.L ì\i4,~ A RESOLUTION AMENDING THE ST. LUCIE COUNTY MANUAL OF PURCHASING REGULATIONS BY AMENDING SECTION 14 OF THE PURCHASING MANUAL TO CHANGE THE DEADLINES FOR PAYMENT OF INVOICES FOR BOTH CONSTRUCTION AND NON-CONSTRUCTION SERVICES TO COMPLY WITH STATE STATUTE; CHANGE THE PROCEDURES FOR RESOLVING CONFLICTS BETWEEN VENDORS AND THE COUNTY WITH REGARD TO INVOICES TO COMPLY WITH STATE STATUTE; ADD RETAINAGE PROCEDURES TO COMPLY WITH STATE STATUTES; CHANGE THE PERSON TO COMMUNICATE WITH A VENDOR IN THE EVENT OF AN INVOICE DISPUTE; AND CHANGE THE PERSON WHO RESOLVES INVOICE DISPUTES; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of St. Lucie County, Florida, has made the following determinations: 1. On October 7, 1985, the Board of County Commissioners for St. Lucie County, (the "Board") adopted Resolution No. 85-212 which established the purchasing regulations and procedures for St. Lucie County, Florida, as set forth in the St. Lucie County Manual of Purchasing Regulations and Procedures (the "Purchasing Manual"); and since that date the Purchasing Manual has been amended from time to time, most recently by Resolution No. 06- 183. 2. Sections 218.73 and 218.735, Florida Statutes, also known as the "Local Government Prompt Payment Act," set out the timelines and procedures for payment of non- construction and construction services, respectively. The deadlines for payment of invoices for both construction and non-construction services have been changed to comply with state statute. 3. The procedures for resolving conflicts between vendors and the County with regard to invoices have been changed to comply with state statute. 4. Retainage procedures have been added to comply with state statutes. 5. The person to communicate with a vendor in the event of an invoice dispute has been changed from "Finance Director" to "County Project Manager"; and, 6. The person who resolves invoice disputes has been changed to reflect what is written in our contract form - from "Office of Management and Budget Director" to "County Administrator." NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of St. Lucie County, Florida: 1. The St. Lucie County Manual of Purchasing Regulations and Procedures is hereby amended as shown in the attached Exhibits "A". 2. This resolution shall become effective upon adoption. After motion and second the vote on this resolution was as follows: Commissioner Joseph E. Smith, Chairperson Commissioner Paula Lewis, Vice Chairperson Commissioner Doug Coward Commissioner Charles Grande Commissioner Chris Craft Aye Aye Aye Aye Aye PASSED AND DULY ADOPTED this 8th day of April, 2008. ATTEST: ~~,':~' :'-'1}.', .,:,l ~,--~'- '\ \ : \. (, \~ \l~r6 \_;)/, ~,,~<' ; Q(~;".~;,\~ BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA B~VL . ,URMAN APPROVED AS TO LEGAL FORM AND CORRECTNESS: ~, 'iL EXHIBIT "A" PURCHASING MANUAL EFFECTIVE DATE: April 8.2008 SECTION 14 - PAYMENT PROCEDURES 14,1 PAYMENT AUTHORIZATION To initiate payment for a received order from an outside vendor, the Department will submit the receiving report and the invoice for the order to the Finance Department. a. After receiving the completed receiving report and the invoice for a completed order, the Department's Requisitioner will authorize payment by signing receiving report, and then submit it to the Finance Department. b. If the order was incomplete, and only a partial shipment was accepted, the Department shall; 1. As shipments are recei"v'ed, the Department will authorize the partial payment on one of the copies made of the receiving report and submit to the Finance Department. e:- The remaining copies will be held until future shipments come in, d-:-Upon receipt of last shipment, the original copy should be marked "Final Invoice," authorized for payment, and submitted to the Finance Department. e. c. See Section 5,3 for payment of items using Check Request Form. 14.2 CONSTRUCTION CONTRACT PAYMENT AUTHORIZATION All payments for Construction_Contracts will be initiated by a Department by utilizing a REQUEST FOR PAYMENT FORM. a. A Department will requisition periodic payments for a Construction Contract on a REQUEST FOR PAYMENT FORM. b. To authorize the final payment for Construction Contract, the Department must obtain a Release of All Liens from the Contractor, 1. Upon completion of the construction, but prior to final payment, the appropriate Department Director shall be responsible for obtaining a Release of Liens from all Subcontractors and sworn statement from the General Contractor that all persons, firms, and corporations who have furnished services, labor or materials in the construction of the premises have been paid and that there are no outstanding monies owed on the contract by the General Contractor. The Release of Liens will be submitted to the County Attorney for review. 2. The properly executed Release of Liens and a written certification by the Department Director that the project has been completed per plans and specifications will be forwarded to the County Administrator for review and approval. 14.3 PAYMENT FOR CONSTRUCTION SERVICES a. "Construction Services" is defined as all labor. services. and materials provided in connection with the construction. alteration. repair. demolition. reconstruction. or any other improvements to real property. b, It shall be County policy that vendors should mail Invoices directly to the Finance Department. Invoices mailed to any other Department shall be considered improper. All invoices shall be marked as to the date of receipt. 1. If Vendor Invoices. Credit Memos. Monthly Statements. are inadvertently mailed to a Department, the Department should forward them to the Finance Department immediately. Invoices are not considered proper until they are received bY the Finance Department. 2. The Finance Department will maintain all invoices on file for use in processina pavments for orders. 3. Anv Invoices, Credit Memos, or Monthlv Statements forwarded bv the Finance Department to the Department for review and/or verification shall be returned to the Finance Department within five (5) davs of receipt. c. Pavment shall be made within twentv-five (25) business davs of receipt of a proper Invoice bv the Finance Department. d. If the invoice is improper, it shall be rejected within twentv (20) business davs of receipt. The rejection must be in writina, bv the Countv Project Manaaer or Desianee, and must specifv the deficiencv in the invoice and the action necessary to make the invoice proper. e. If anv portion of the invoice is undisputed, the undisputed portion shall be paid within twentv-five (25) business davs of receipt bv the Finance Department. The Countv Project Manaaer or Desianee shall submit a memorandum to the Finance Department indicatina which portion of the invoice is undisputed and the Finance Department shall timelv remit pavment for that portion. If necessary for that Contract. the Countv Project Manaaer or Desianee shall include in the memorandum a corrected calculation of retainaae to be withheld from the partial pavment. e. If the invoice is reiected as improper under subsection (d) and the Contractor submits a corrected invoice which corrects the deficiencv, the corrected invoice must be paid or rejected on the later of: 1) Ten (10) business davs after the date the corrected invoice is stamped as received bv the Finance Department; or 2) If the Board of Countv Commissioners must approve the pavment. the first business dav after the next reaularlv scheduled meetina of the Board held after the corrected invoice is stamped as received bv the Finance Department. f. If the second invoice submitted bv the Contractor is still improper or if the dispute between the Countv and the Contractor still cannot be resolved, the dispute shall be resolved in accordance with the dispute resolution procedure prescribed in the Contract between the Countv and the Contractor. e. The Finance Department shall timelv pav anv proper invoices which are submitted subseauent to an improper invoice, even if the dispute reaardina the improper invoice has not vet been resolved. 14.4 RETAINAGE PROCEDURES FOR CONSTRUCTION SERVICES CONTRACTS a. If a Construction Services Contract is for more than two hundred thousand dollars ($200,000.00), the Countv mav withhold retainaae from each proaress pavment in an amount not exceedina ten percent (10%) of the pavment until Fifty Percent Completion of such services, b. The term "Fiftv Percent Completion" shall be defined in each Contract. c. After Fiftv Percent Completion of the Construction Services have been completed pursuant to the Contract. the Countv must reduce to five percent (5%) the amount of retainaae withheld from each subseauent proaress pavment made to the Contractor, unless it is notified to do otherwise bv the Contractor, 14.35 PAYMENT FOR ORDERS AND NONCONSTRUCTION SERVICES After receiving a receiving report or payment request, the Finance Department will process it for payment in accordance with the appropriate procedure for processing invoices. a. Payment checks will be issued by the Finance Department weekly on Tuesday. 1. To have a check issued for an order, the receiving report/payment request and invoice must be submitted to the Finance Department by noon on the preceding Thursday. b. It shall be County policy that vendors should mail original Invoices w'ith duplicate copies directly to the Finance Department. All invoices shall be marked as to the date of receipt. 1. If Vendor Invoices, Credit Memos, Monthly Statements, are inadvertently mailed to a Department, the Department should promptly forward them to the Finance Department within five (5) days of receipt. 2. The Finance Department will maintain all invoices on file for use in processing payments for orders. 3. Any Invoices, Credit Memos, or Monthly Statements forwarded by the Finance Department to the Department for review and/or verification shall be returned to the Finance Department within five (5) days of receipt. c, Payment shall be made within forty-five (45) days of receipt of the Invoice by the Finance Department. d. If a proper invoice is not received by the County, payment shall be made within forty-five (45) days from the date: 1. On which delivery of personal property is accepted by the County; 2. On which services are completed; 3. On which the rental period begins; or 4. On which the County and the vendor agree in a contract which may provide dates relative to payment periods. e. If the terms under which a purchase is made allows for partial deliveries and a proper invoice is submitted for such a partial delivery, then the time for payment for such partial delivery shall be calculated from the time of such partial delivery and the submission of such invoice as provided above in Section 14.3(d). f. All payments due from the County not made within the time specified within this section shall bear interest from thirty (30) days after the due date at a rate of one percent (1%) per month on the unpaid balance. Any overdue period of less than one (1) month shall be considered as one (1) month in computing interest. Unpaid interest shall compound monthly. With respect to each past due payment, interest shall cease to accrue after interest on that payment has accrued for twelve (12) months. For purposes of this section, one (1) month shall constitute a period beginning on any day of one (1) month and ending on the same day of the following month. g. No Contract between the County and a vendor shall prohibit the vendor from invoicing the County for late payment interest allowable under this section. h, Any dispute involving an Invoice shall be resolved in the following manner: 1. In any case in which an improper invoice is submitted by a vendor, the rinance Director County Project Manaqer or Desiqnee, within ten (10) days of receipt of the improper invoice, shall notify the vendor that the invoice is improper and indicate what corrective action on the part of the vendor is needed to correct the invoice, 2. In the event a dispute occurs between the rinance Director County Project Manaqer and a vendor, the vendor may appeal the decision of the rinance Director County Project Manaqer to the Director of Management & Oudget County Administrator or Designee no later than forty-five (45) days after receipt of the proper invoice by the Finance Department. The appeal shall be filed with the Office of Management & Oudget County Administrator or Desiqnee in writing and shall state the nature of the dispute and the vendor's requested relief. Within five (5) days of receipt of the appeal by the vendor, the rinance Director County Project Manaqer shall provide the Office of Management & Oudget County Administrator or Desiqnee with a written report on the dispute. The Office of Management & Oudget County Administrator or Desiqnee may request additional information from the vendor and the rinance Director County Project Manaqer as he/she feels necessary. The Office of Management & Oudget County Administrator or Desiqnee shall issue a written decision on the dispute within sixty (60) days of the date of the receipt of the proper invoice by the Finance Department. 3. If the Office of Management & Oudget County Administrator or Desiqnee resolves the dispute in favor of the County, interest charges shall begin to accrue fifteen (15) days after the issuance of the Office of Management & Oudget County Administrator or Desiqnee's final decision. If the dispute is resolved in favor of the Vendor, interest shall begin to accrue as of the original date the payment became due. 4. During December of each year, the Office of Management & Budget shall report to the Board of County Commissioners the number of interest payments made by the County under this section during the preceding fiscal year and the total amount of such payments. 14.4 6 PAYMENT LIMITS The Finance Department may not make any payment on any purchase that exceeds the payment limit on a Purchase Order or the contract amount of a Contract. a. For a Purchase Order only, the amount of the Purchase Order plus 10% or $100.00 whichever is less, is the payment limit. b. For a Contract, the Contract amount is the firm payment limit. c. When an excess payment over the payment limit or contract amount is invoiced by the vendor, the Finance Department will notify the Purchasing Department and Department concerned. d. If the Department wishes to pay the excess amount, it must prepare and submit a PURCHASE ORDER CHANGE FORM, as per Section 12.3, and/or a Contract Change Order approved by the Board of County Commissioners as per Section 8.7 of this manual. e. After the Purchase or Contract Amount has been increased to the appropriate figure for the higher than expected invoice, the Finance Department may then make payment up to the appropriate amount. f. If the Purchase or Contract Amount is not increased, the Finance Department may make payment only up to the originally authorized payment limit or Contract Amount.