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Item U03 U.3 Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS �� Mayor David Rice,District 4 The Florida Keys � Mayor Pro Tem Craig Cates,District I y Michelle Coldiron,District 2 James K.Scholl,District 3 Ij Holly Merrill Raschein,District 5 County Commission Meeting July 20, 2022 Agenda Item Number: U.3 Agenda Item Summary #10823 BULK ITEM: No DEPARTMENT: County Attorney's Office TIME APPROXIMATE: STAFF CONTACT: Pedro Mercado (305) 292-3470 N/A AGENDA ITEM WORDING: Approval of a Resolution delegating additional purchasing authority to the County Administrator for Direct Purchase items of $50,000.00 and greater that provide tax savings for the Key West International Airport Concourse A and Terminal Improvements construction project. ITEM BACKGROUND: The County's purchasing policy and procedures delegates purchasing authority to the Department Directors for purchases between $.01 - $19,999.99, and to the County Administrator, Assistant County Administrator or Purchasing Director for purchases of$20,000.00 - $49,999.99. Purchases of$50,000.00 and greater are required to be approved by the BOCC. The County has contracted with NV2A for the new terminal construction project utilizing the CMAR construction delivery method. As part of the delivery method, NV2A is required to identify materials, supplies and equipment that the County can purchase directly thereby realizing significant tax savings on the construction costs for the project. In order to obtain the tax savings, the County has to issue purchase orders directly to the vendor. By delegating the additional purchasing authority to the County Administrator, the County will be able to avail itself of every tax savings opportunity available that might otherwise be lost by the delay required by placing a Direct Purchase item on the agenda for board approval. PREVIOUS RELEVANT BOCC ACTION: None CONTRACT/AGREEMENT CHANGES: new resolution STAFF RECOMMENDATION: Approval. DOCUMENTATION: Resolution - Delegation of Purchase Order authority v2 clean Packet Pg. 1748 U.3 FINANCIAL IMPACT: Effective Date: Upon execution Expiration Date: Delegation of additional purchase authority limited to New Terminal Project. Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: N/A Budgeted: N/A Source of Funds: N/A CPI: N/A Indirect Costs: N/A Estimated Ongoing Costs Not Included in above dollar amounts: N/A Revenue Producing: N/A If yes, amount: Grant: County Match: Insurance Required: no Additional Details: REVIEWED BY: Bob Shillinger Completed 07/12/2022 12:01 PM Pedro Mercado Completed 07/12/2022 12:02 PM Purchasing Completed 07/12/2022 12:12 PM Budget and Finance Completed 07/12/2022 1:37 PM Brian Bradley Completed 07/12/2022 1:41 PM Lindsey Ballard Completed 07/12/2022 2:05 PM Board of County Commissioners Pending 07/20/2022 9:00 AM Packet Pg. 1749 U.3.a RESOLUTION NO. -2022 A RESOLUTION BY THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS DELEGATING SIGNATURE 0 AUTHORITY TO THE COUNTY ADMINISTRATOR FOR ALL OWNER DIRECT PURCHASE ORDERS FOR THE KEY WEST INTERNATIONAL AIRPORT CONCOURSE A AND 0 TERMINAL IMPROVEMENTS PROGRAM CONSTRUCTION PROJECT (Project). WHEREAS, Monroe County (County) has contracted with a construction contractor (NV2A) employing a Construction Manager at Risk project delivery method; and WHEREAS, as a political sub-division of the State of Florida, purchases, including construction materials, supplies and equipment, made by the County are exempt from state 0 taxation; and U) WHEREAS, the tax exemption provides the County with an opportunity for significant savings in construction costs; and c� WHEREAS, under the terms of the pre-construction and construction phase services contract, NV2A is required to identify Direct Purchase materials, supplies and equipment items to be used on the Project that can be purchased by the County; and a� WHEREAS,in order to obtain the tax exemption/savings on the purchase of the materials, 0 supplies and equipment items for the project, the County has to issue a County Purchase Order c� directly to the vendor; and 4- 0 WHEREAS, the County has a Board approved Purchasing Policy, which sets forth purchasing authority thresholds and delegates purchasing authority to,the Department Director or their designees for purchases of $.01 - $19,999.99, and to the County Administrator, Assistant 2 County Administrator or Purchasing Director for purchases of$20,000.00 - $49,999.99; and WHEREAS, the Purchasing Policy requires that purchases of$50,000.00 and greater be 0 approved by the Board; and WHEREAS, the County anticipates that the dollar value of many of the purchase orders for the project will exceed the purchase authority of the County Administrator under current purchasing policies and procedures; and Packet Pg. 1750 U.3.a WHEREAS,the County anticipates that the delay engendered in placing a Direct Purchase Item on the agenda for approval at a regularly scheduled Board of County Commissioners' meeting < will result in the loss of the opportunity to realize significant tax savings on the Project; 0 611, NOW THEREFORE, BE IT RESOLVED THAT THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, HEREBY: 0 1. Finds it to be in the best interests of the County to avail itself of all possible opportunities for savings on the Project. U) 2. In addition to the delegated authority set forth in the Purchasing Policy, delegates to the County Administrator or his designee purchase and signature authority for all Direct Purchase items on the Project of$50,000.00 and over that will provide a tax savings on the Proj ect. 3. Directs the Director of Airports to include, in the airports monthly change order report, a U) listing of all Direct Purchase Orders issued by the County Administrator for the preceding month on the project. c� PASSED AND ACCEPTED by the Board of County Commissioners of Monroe County, > Florida, at a meeting of said Board held on the day of , 2022. Mayor David Rice Mayor Pro Tem Craig Cates Commissioner Michelle Coldiron 0 U) Commissioner James K. Scholl Commissioner Holly Raschein a� 4- 0 (SEAL) BOARD OF COUNTY COMMISSIONERS 2 Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FL 0 By By As Deputy Clerk Mayor David Rice NROE GOU'N7Y ATTORNEY ° A. HOVE FORM �..,, �,,� 1 �-,mow, A8SISTAD Cr8UN d A RNEY Date_ 7/12/22 Packet Pg. 1751