§ 2-8.1.4. Sherman S. Winn Prompt Payment Ordinance.

(1)

Purpose and policy.

(a)

The purpose of this section [Ordinance No. 94-40] is:

1.

To provide for prompt payments by County agencies and the Public Health Trust;

2.

To provide for expedited payment to small businesses;

3.

To provide for interest payments on late payments made by the County and the Public Health Trust;

4.

To create a dispute resolution process for payment of County and Public Health Trust obligations.

(b)

It is the policy of this County that payment for all purchases by County agencies and the Public Health Trust be made in a timely manner.

(2)

Definitions. As used in this section:

(a)

Proper invoice means an invoice which conforms with the present requirements of the County departments listed in section (8) below or the Public Health Trust, and any rules promulgated from time to time by administrative order of the County Manager. A proper invoice shall include a statement by the vendor waiving claims for extra direct and indirect costs or time associated with work preceding the date of the invoice, or a statement in sufficient detail containing all rights reserved for work already performed. All present requirements or future rules pertaining to the execution of a proper invoice must be made available to vendors in a timely manner.

(b)

Purchase means the purchase of goods or services, the purchase or lease of personal property, or the lease of real property.

(c)

Minority and women business enterprises means any business enterprise certified by Miami-Dade County in accordance with (a) Section 2-8.2 of the Code of Miami-Dade County or any other ordinance of Miami-Dade County addressing racial, gender or ethnic discrimination against Black, Hispanic or Women-owned businesses, or (b) the Disadvantaged Business Enterprise Program of the United States Department of Transportation.

(d)

Small business means a small business as defined in Section 2-222 of the County Code, as presently written and as may hereafter be amended.

(e)

Vendor means any person who sells goods or services, sells or leases personal property, or leases real property to the County.

(3)

Timely payment. The time at which payment for a purchase by the County or the Public Health Trust is due shall be calculated from:

(a)

The date on which a proper invoice is received by the County or the Public Health Trust, after approval by the Board of County Commissioners or the Trust; or

(b)

If a proper invoice is not received by the County or the Public Health Trust, the date:

1.

On which delivery of personal property is accepted by the local government entity;

2.

On which services are completed;

3.

On which the rental period begins; or

4.

On which the County or the Public Health Trust and the vendor agree in a contract which may provide dates relative to payment periods;

whichever date is latest.

(4)

Procedures for calculation of payment due dates.

(a)

The County Manager, by administrative order, shall establish procedures whereby each invoice received by the County or the Public Health Trust shall be marked as having been received on the date on which it is first delivered into the hands of an agent or employee of the County or the Public Health Trust, or is first delivered to a facility or office of the County or the Public Health Trust. The date so marked shall be the date on which the invoice is received.

(b)

The time at which payment shall be due from the County or the Public Health Trust shall be forty-five (45) days from the date specified in section (3) above.

(c)

The time at which payment shall be due to small businesses and minority and women business enterprises shall be thirty (30) days from the date specified in section (3) above.

(d)

If the terms under which a purchase is made allow 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 submission of such invoice in the same manner as provided in section (3) above.

(e)

All payments due from the County or the Public Health Trust, and not made within the time specified by these sections shall bear interest from thirty (30) days after the due date at the rate of one (1) percent per month on the unpaid balance. The vendor must invoice the County or the Public Health Trust for any interest accrued in order to receive the interest payment. 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.

(5)

Mandatory interest. No contract between the County or the Public Health Trust and a vendor shall prohibit the vendor from invoicing for late payment interest charges allowed under this part.

(6)

Improper invoice; resolution of disputes.

(a)

In any case in which an improper invoice is submitted by a vendor, the County or the Public Health Trust shall, within ten (10) days after the improper invoice is received by it, notify the vendor that the invoice is improper and indicate what corrective action on the part of the vendor is needed to make the invoice proper.

(b)

In the event a dispute occurs between a vendor and the County or the Public Health Trust concerning payment of an invoice, such disagreement shall be finally determined as provided in this section. Proceedings to resolve the dispute shall be commenced not later than forty-five (45) days after the date on which the proper invoice was received by the County or the Public Health Trust, and shall be concluded by final written decision of the County Manager, or his or her designee(s), not later than sixty (60) days after the date on which the proper invoice was received by the County or the Public Health Trust. The proceedings shall be recorded or transcribed, at the expense of the County or the Public Health Trust, and shall be conducted on an informal basis, with hearsay evidence being admissible.

If the dispute is resolved in favor of the County or the Public Health Trust, interest charges shall begin to accrue on the sum contained in the Manager's, or his or her designee's decision, fifteen (15) days after the Manager or his or her designee's final decision. If the dispute is resolved in favor of the vendor, then interest shall begin to accrue as of the original date the payment became due.

(7)

Payment by federal funds. Where the County or the Public Health Trust intend to pay for a purchase with federal funds, the purchase shall not be made without reasonable and written assurance that federal funds will cover the cost thereof. Where payment or the time of payment is contingent on receipt of federal funds or federal approval, any contract and any solicitation to bid shall clearly state such contingency.

(8)

Report of interest. The County Finance Department, Aviation Department, Department of Housing and Urban Development, the Public Health Trust, and the Water and Sewer Authority, shall, during December of each year, report to the Board of County Commissioners or the Trust, as applicable, the number of interest payments made by each during the preceding fiscal year, the total amount of such payments made pursuant to this ordinance and the Florida Prompt Pay Act, and an explanation as to each such interest payment made.

(9)

Inclusion in contracts; applicability to subcontracts. All county contracts and contracts of the Public Health Trust shall contain the provisions of this section [Ordinance No. 94-40] as presently written and as may hereafter be amended. The County Manager shall develop and include appropriate language in all County contracts and contracts of the Public Health Trust to require the prime vendor to issue prompt payment and have dispute resolution procedures in place in the event of disputed payments to small businesses. Failure of the prime vendor to issue prompt payment to a small business, or to adhere to its dispute resolution procedures, may be cause for suspension, termination, and debarment, in accordance with the terms of the County contract or Public Health Trust contract and the debarment procedures of the County.

(Ord. No. 94-40, § 1, 3-17-94; Ord. No. 94-106, § 1, 6-9-94)