Chapter 2.70
PROCUREMENT AND DISPOSITION OF GOODS AND SERVICES
Sections:
2.70.010 General provisions – Applicability and exemptions.
2.70.020 Authority of the mayor.
2.70.030 Sole source procurement.
2.70.040 Emergency procurements.
2.70.050 Special procurements.
2.70.060 Contract award and approval authorization.
2.70.070 Prohibited practices.
2.70.080 Petty cash and change funds.
2.70.100 Disposition of city property.
2.70.110 Disposition of unclaimed or lost property.
2.70.010 General provisions – Applicability and exemptions.
A. This chapter applies to every expenditure of public moneys by this city irrespective of its source, including federal assistance moneys, except that this chapter does not apply to grants or intergovernmental cooperative purchasing agreements between this city and other governments. This chapter also applies to the disposal of city property, including equipment and real property. Nothing in this chapter shall prevent the city from complying with the terms and conditions of any grant, gift, bequest or cooperative agreement.
B. The provisions of this chapter are not applicable to contracts for professional witnesses if the purpose of such contracts is to provide for services or testimony relating to an existing or probable judicial proceeding in which this city is or may become a party or to contracts for special investigative services for law enforcement purposes.
C. Agreements negotiated by the city attorney in settlement of litigation or threatened litigation are exempt from the provisions of this chapter.
D. The purchases of materials for resale in a concession operation are exempt from the provisions of this chapter. However, such purchases shall be in accordance with procedures prescribed by the mayor.
E. The award of financial participation agreements, master operating agreements, memoranda of understanding, and community development block grants are exempt from this chapter. Such contracts shall be awarded in accordance with the applicable requirements of those agreements or programs.
F. The provisions of this chapter are not applicable to contracts for various local improvement districts and related formations. Such contracts shall be awarded in accordance with applicable state law governing the district. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.020 Authority of the mayor.
Except as otherwise provided in this chapter, the mayor is hereby authorized to adopt and implement administrative policies, procedures, and forms, consistent with this chapter and state and federal laws, governing the procurement and management of all materials, services and construction to be procured by the city and the disposal of personal and real property. The mayor shall designate an exempt employee of the city to serve as the chief contract officer (CCO) of the city. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.030 Sole source procurement.
A contract may be awarded without competition when the CCO determines in writing, after conducting a good faith review of available sources, that there is only one source for the required material, service, or construction item. The using department requesting sole source procurement shall provide written evidence to support a sole source determination. The CCO may require that negotiations are conducted as to price, delivery, and terms. The CCO may require the submission of cost or pricing data in connection with an award under this section. Sole source procurement shall be avoided, except when no reasonable alternative sources exist. A record of sole source procurements shall be maintained as a public record. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.040 Emergency procurements.
Notwithstanding any other provisions of this chapter, the CCO may make or authorize others to make emergency procurements of materials, services, or construction items when there exists a threat to public health, welfare, or safety or if a situation exists which makes compliance with this chapter contrary to the public interest; provided, that such emergency procurements shall be made with such competition as is practicable under the circumstances. An emergency procurement shall be limited to those materials, services, or construction necessary to satisfy the emergency need. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. All waivers of competitive bidding under this section shall be in accordance with RCW 39.04.280. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.050 Special procurements.
A. Notwithstanding any other provisions of this chapter, the CCO or his designee may make procurements when, due to unusual or special circumstances, it would be in the best interest of the city to accomplish the procurement without compliance with the provisions of this chapter. Any special procurement under this section shall be limited to those materials, services, or construction necessary to satisfy the city’s need and shall be made with sound fiscal discretion, and shall be in compliance with all state and federal laws. A written determination by the CCO of the basis for the special procurement and for the selection of the particular contractor shall be included in the contract file. The determination and the award shall be made in accordance with internal procedures ensuring that the procurement is in the public interest, fair, honest, prudent and a wise exercise of discretion.
B. Auction, Closeout, and Bankruptcy Sales. If the CCO or designee determines that supplies, material, or equipment can be purchased by any public auction, closeout sale, bankruptcy sale or other similar sale, and makes a finding that a purchase at any such auction or sale will be made at a cost below the market cost, the CCO may authorize said purchases.
C. Real Property. The acquisition of real property is exempt from competitive bidding. Upon approval of the city council, the mayor may proceed to acquire real property through negotiation. Such negotiations shall be based upon an independent fee appraisal of the property when the negotiated price will exceed $500,000. The mayor shall not agree to pay more than fair market value for any real property without prior council approval. If the property is acquired in part or in whole with federal funds, such acquisition shall additionally comply with the Uniform Real Property Acquisition and Relocation Assistance Act of 1970, as amended. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.060 Contract award and approval authorization.
A. The city council authorizes the mayor or designee (including CCO) to enter into and execute on behalf of the city certain types of contracts without individual approval of each contract by the city council. This authority is granted only if the contract is consistent with the approved annual budget for the city, and the city’s liability under the contract does not exceed available fund balances. All contracts must be reviewed and “approved as to form” by the city attorney in order to be approved by this process. The contract types authorized under this section include:
|
Contract Type |
Maximum Annual Contract Amount* |
Mayor (or designee) with Review of City Attorney |
|
Leases for city property for fair market value when the leased space is less than 2,500 square feet and the term is less than 10 years |
N/A |
Yes |
|
Goods, services, supplies, materials, or equipment, including capital equipment |
$25,000 or $50,000 with prior notice to council |
Yes |
|
Maintenance contracts |
$50,000 |
Yes |
|
Public works contracts |
$100,000 or $250,000 with prior notice to council |
Yes |
|
Professional service or consultant agreements |
$50,000 |
Yes |
|
Lease agreements for materials, supplies or equipment |
$25,000 |
Yes |
|
Routine contract extensions for contracts that have been approved by the city council when such extensions are under substantially similar terms and are within the adopted budget |
N/A |
Yes |
|
Contract which carries out or implements a provision of this code or established city policy, e.g., maintenance or performance bonds for plat improvements |
N/A |
Yes |
|
Any project or purchase that is specifically listed or described with specificity in the approved budget |
N/A |
Yes |
* Not including sales or use tax – if applicable.
1. Contracts not consistent with the above table, or are to be paid with unappropriated funds, must be preapproved by the city council.
2. The breaking down of any purchase or contract into units or phases for the purpose of avoiding the maximum dollar amounts is prohibited. The amount of the contract includes all amendments; however, amendments that do not exceed in total 10 percent of the contract amount up or $25,000, whichever is larger, may be entered into without prior city council approval.
B. All contracts presented for signature by the mayor or designee shall be signed by the city attorney as to form and legality.
C. The mayor or designee in his or her discretion may present any contract to the city council for prior approval, even if the contract is allowed to be approved without prior city council approval.
D. Interlocal agreements shall be presented to the city council for prior approval.
E. For the purpose of this chapter, “contract” means any agreement creating a legal relationship between the city and another person or entity, or any amendment thereto. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.070 Prohibited practices.
The following types of procurement practices are hereby prohibited:
A. Collusion Among Bidders. Any agreement or collusion among bidders or prospective bidders to either buy or sell, in restraint of freedom of competition, be it agreement to bid a fixed price, or otherwise, shall render the bids of such bidders void. Such bidders may be subject to possible exclusion from future bidding with the city when determined by the CCO to be in the best interest of the city.
B. Disclosure of Formal Bid Contents. Any disclosure in advance of the opening bids, of any information contained in the sealed or formal bid, made or permitted by a city officer or employee may render each bid void either by the city or the parties submitting bids. Appropriate disciplinary action shall be taken against both the persons revealing the information and the persons using the information. Notwithstanding anything herein to the contrary, all bids submitted by bidders taking advantage of any information revealed contrary to this section shall at once become null and void.
C. Gratuities. With the exception of normal business and social courtesies, or donations publicly given and accepted, the acceptance of any gift or gratuity in the form of cash, merchandise or any other thing of significant value by an official or employee of the city from any vendor or contractor, or prospective vendor or contractor, shall be prohibited.
D. Employee-Owned Businesses. City goods or services shall not be obtained from businesses in which city officials, employees or their immediate family members have a majority ownership interest, except where such purchase is the result of an open and competitive procurement process in which the business is determined by the CCO to be the lowest responsible bidder.
E. Sale of Materials and Supplies. The city shall not use its purchasing power or lend its credit to acquire goods or services for any private party, nor shall the city sell its materials or supplies to city officials, employees, or the public except when said materials have been declared surplus and are properly disposed of as provided by law. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.080 Petty cash and change funds.
The office of financial services may maintain petty cash and/or change funds of up to $1,000 each for general government, the police department, and the court, to help eliminate the issuance of purchase orders and claims vouchers for small items needed immediately from vendors not having open purchase orders, and for travel. No single petty cash purchase shall exceed $100.00, except in emergencies. All requests for petty cash funds or reimbursement of petty expenditures shall be reconciled by a receipt or paid invoice along with a completed petty cash form. Reimbursements and reconciliations of petty cash funds shall be made within 30 days of the transaction. No personal checks shall be cashed out of any petty cash or change fund. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.090 Credit cards.
A. Pursuant to RCW 43.09.2855, the following policies shall govern the distribution, authorization, use and control of credit cards by city officials and employees:
1. Unless otherwise authorized by resolution of the city council, the city will maintain only one general credit card account, one purchasing card account, and one credit card account for fleet services. Said accounts shall not be used for cash advances.
a. For purposes of this section, a “purchasing card” is a “credit card” as defined in RCW 43.09.2855(4).
2. Credit cards and/or purchasing cards may be temporarily distributed to those city officials and employees who, in the opinion of the mayor, have job responsibilities which would be facilitated by the use of such a card and that use would benefit the city.
3. The CCO, in cooperation with the chief financial officer, shall develop and implement guidelines and accounting controls to ensure the proper usage of credit and purchasing cards, and the payment of all credit and/or purchasing card bills.
4. The CCO shall set reasonable spending limits on each credit and/or purchasing card issued. The credit limit on each of the credit card or purchasing card accounts shall not exceed $15,000 without approval of the city council.
5. Any employee using a city-issued credit or purchasing card for noncity business shall be billed for all charges on the credit or purchasing card, and the mayor or his/her designee is directed and authorized to take all necessary legal actions to recover any unauthorized charges.
B. Corporate Cards. In lieu of an open purchase order with vendors with which the city does frequent business, the mayor or CCO may authorize the use of a vendor’s corporate card. Cards may be issued only to those city employees who have purchasing responsibilities which would be facilitated by the use of a corporate card, and the use would benefit the city. The CCO, in cooperation with the chief financial officer, shall develop and implement guidelines and accounting controls to ensure the proper usage of corporate cards. (Ord. 1709 § 10, 2023; Ord. 1345 § 1, 2010; Ord. 1310 § 1, 2009; Ord. 1251 § 1, 2007).
2.70.100 Disposition of city property.
A. Definition. “City property” shall mean any property or equity interest in real or personal property held or owned by the city except for mortgages taken or released to secure the installation of development improvements.
B. Surplus Property Disposal. Upon recommendation of the department head, the chief financial officer may declare property surplus upon a finding of one or more of the following criteria:
1. The city has or soon will have no practical, efficient, or appropriate use for the property, nor will it have such a use for the property in the near future.
2. The purpose served by the property can be accomplished by use of a better, less costly, or more efficient alternative.
3. The purpose served by the property or its use no longer exists as determined by a change of policy evidenced by an ordinance or resolution of the city council.
4. The property is damaged, worn out or otherwise inoperable and the cost of repairing the same is unwise or impractical.
C. Sale of Surplus Property Not Belonging to City Utility. The CCO is authorized to sell surplus property not belonging to a city utility in the following manner:
1. If a department head has city property under his or her control or supervision which is deemed surplus to use, said employee shall notify the CCO, who shall in turn notify interested department heads, supervisors or other city representatives and give them an opportunity to review their need for the same. If any of such persons desire to acquire and use the proposed surplus property, unless the CCO disagrees, the property may be transferred to the requesting department head or other authorized representative.
2. If no request for use of a piece of proposed surplus property is received, and the value of the proposed item to be surplussed is less than $1,000, the CCO may then proceed to direct the disposal of the same by public auction, bid, or other method of sale on terms the CCO deems to be in the best interest of the city. If the value of the item exceeds $1,000, the item shall be declared surplus by resolution of the city council; provided, however, if the value of said surplus property is estimated to exceed $50,000, a hearing shall be held prior to disposal in accordance with RCW 39.33.020. Public auctions may be conducted on site or electronically. Unless otherwise provided, all proceeds from sale or auction of surplus property will be deposited into the city’s general fund. Proceeds from sale of utility, grant or other special designation property will be reimbursed, less prorated selling expenses, to the appropriate fund, after completion of each sale.
3. Surplus personal property which has only nominal value because of obsolescence, wear and tear, or other reasons may be dismantled, if necessary, and sold as scrap. Surplus personal property which has no marketable value or use may be discarded as refuse.
4. If the proposed surplus property is real property, notice of the proposal to declare the same surplus shall additionally be given to all city council members. The decision to declare surplus real property shall rest solely with the city council. If the value of said surplus property is estimated to exceed $50,000, a hearing shall be held prior to disposal in accordance with RCW 39.33.020. If, following a public hearing, the city council votes to declare the real property as surplus, the CCO shall secure an independent fee appraisal of the property and proceed to sell the same by public auction or through the formal bidding procedures set forth herein as the CCO deems to be in the best interest of the city.
5. In addition, for property that is worth less than $1,000, the property may be donated under the following circumstances:
a. To a nonprofit organization that provides support to people who are low income and/or who are disabled within the greater Bonney Lake area; or
b. If the CCO determines that the cost of sale or disposal of the property will exceed the fair market value of the property, it may be donated to any nonprofit organization.
D. Special Requirements for City Utility Property. As required by RCW 35.94.040, whenever the city council shall determine, by resolution, that any lands, property, or equipment originally acquired for public utility purposes is surplus to the city’s needs and is not required for providing continued public utility service, then the city council by resolution and after a public hearing may cause such lands, property, or equipment to be leased, sold, or conveyed. Such resolution shall state the fair market value or the rent or consideration to be paid and such other terms and conditions for such disposition as the council deems to be in the best public interest.
E. Trade of Real Property. Real estate may be traded under the following conditions:
1. If the CCO determines that the real property declared surplus under this section could be sold for a greater consideration or benefit to the city if something other than cash were taken as consideration, then the CCO may invite prospective purchasers to tender consideration, either cash or in kind or a combination of both. Upon receipt of a bid tendering consideration in kind, and if the CCO considers such bid to be the best offer made, prior to accepting such a bid the CCO shall make a report setting forth reasons for thinking the in-kind bid has the most value to the city. This report shall be made to the city council at a regular council meeting and the report shall remain open to public inspection.
2. Before accepting any bid containing in-kind consideration, an adequate appraisal must have been made by a qualified independent appraiser.
3. If the city council finds that the bid containing the in-kind consideration has more value or benefit to the city than any other bid submitted, the CCO may accept the bid containing in-kind consideration.
F. Lease of Public Property. When specifically provided for in the adopted city budget, the mayor may authorize the lease or sublease of any property, including real property, under such terms and conditions as the mayor may deem desirable, fair and appropriate, either by use of negotiations or bidding in the best interest of the city. Leases of real property shall not be granted for a period of more than five years unless approved by the city council. (Ord. 1685 §§ 1, 2, 2023; Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).
2.70.110 Disposition of unclaimed or lost property.
The city, through the police department, shall dispose of unclaimed or lost property as outlined in Chapter 63.32 RCW. (Ord. 1709 § 10, 2023; Ord. 1251 § 1, 2007).