Chapter 3.12
PURCHASING POLICY
Sections:
3.12.050 Architectural and engineering services.
3.12.070 Exemptions to competitive bidding requirements.
3.12.080 Prohibited practices.
3.12.090 Disposition of public property.
3.12.010 Definitions.
Unless the context requires otherwise, the terms as used in this chapter shall have the following meaning:
(a) “Contractual services” means professional and nonprofessional service contracts including but not limited to engineering, animal control, janitorial and other contracts entered into for the accomplishment of a particular project or limited period of time.
(b) “Bidding” means a procedure used to solicit quotations on price and delivery from various prospective suppliers of supplies, materials, equipment, and other city property.
(c) “Bid” means an offer, submitted by a bidder to furnish supplies, materials, equipment and other property in conformity with the specifications, delivery terms and conditions, and other requirements included in the invitation for bids or otherwise required by the city.
(d) “Local bidder” means a firm or individual who regularly maintains a place of business and transacts business in, or maintains an inventory of merchandise for sale in, and is licensed by the city of Fircrest.
(e) “Responsible bidder” means a bidder who has proven by experience or information furnished to the satisfaction of the city manager or his/her designee that current financial resources, production or service facilities, service reputation and experience are adequate to make satisfactory delivery of supplies of acceptable quality, equipment or contractual services on which he/she bids; and who has not violated or attempted to violate any provisions of this policy.
(f) “Purchasing coordinator” means the city manager or any city employee designated by the manager to serve as purchasing coordinator.
(g) “Requisition” means a standard form providing detailed information as to quantity, description, estimated price, possible vendors, fund account, signature and other information necessary to make purchasing decisions.
(h) “Purchase order” means an official document used in authorizing the encumbrance of city funds toward the purchase of supplies, materials, equipment and other expenditures.
(i) “Adequate appropriation balance” means a sufficient balance existing in the appropriation line item against which the purchase order is to be charged.
(j) “Public property” means any item of real or personal property owned by the city.
(k) “Capital equipment” means any equipment of the city having an initial value of $1,000 or more and an estimated useful life of more than one year. (Ord. 1127 § 1, 1996).
3.12.020 Administration.
Under direction of the city manager, the purchasing system provided herein shall be administered in accordance with applicable state statutes, this chapter, and by other applicable laws.
The city manager and his/her designee(s) shall have the responsibility and accountability to purchase and dispose of city property as follows:
(a) Administer and maintain the purchasing system according to the rules and regulations established or authorized by this policy or other applicable ordinances and statutes.
(b) Coordinate the negotiation, purchase and disposition of all city supplies, materials and equipment in consultation with department heads, division managers and other responsible city agents.
(c) Seek to obtain full and open competition either by bidding or negotiation on all city purchases.
(d) Keep departments informed of current developments in the field of purchasing, i.e., prices, market conditions, new products, etc.
(e) Prescribe and maintain such administrative policies, procedures and forms as are reasonably necessary to the operation of said purchasing system.
(f) Coordinate the inspection of all city-purchased equipment to assure conformance with specifications.
(g) See that bidders’ lists, vendors’ catalog file and other records needed for the efficient operation of the purchasing system are maintained.
(h) Maintain the property inventory and fixed asset systems of the city.
(i) Determine with the appropriate department head the need for any routine preventative maintenance contracts on equipment items. Establish and maintain needed maintenance contracts.
(j) Prepare annually a comprehensive list of surplus equipment. Items which cannot be used or reassigned to another department shall be recommended to the manager for disposal at a public auction, unless the cost of said surplus property exceeds $5,000, in which case the manager shall hold a public hearing prior to disposal pursuant to RCW 39.33.020. (Ord. 1127 § 1, 1996).
3.12.030 Local vendors.
Bids and price quotations shall be obtained from Fircrest vendors whenever possible. (Ord. 1127 § 1, 1996).
3.12.040 Formal bidding.
Formal bidding shall be used whenever a public works project estimated cost exceeds the sum of $65,000 if more than one craft or trade is involved with the public work or $40,000 if a single craft or trade is involved with the public work or the public works project is street signalization or street lighting, or in such amount as is set forth in RCW 35.23.352 as amended. Bid packets shall be prepared for all formal bids, and shall include an invitation to bid notice, instructions to bidders, general conditions, special bid conditions (if any), terms and conditions, and a bid proposal form indicating the type of response desired from a bidder.
(a) Small Works Roster.
(1) The city manager or designee may establish a small works roster for contracts with an estimated cost of $300,000 or less, or in such amount as is set forth in RCW 39.04.155 as amended.
If a small works roster is established, then:
(A) The city manager or designee shall publish in the official newspaper twice each year for two consecutive weeks a notice of establishment of the small works roster.
(B) A list of contracts awarded through this process shall be posted at least once every two months and shall contain the name of the contractor, a brief description of the work performed, and date the contract was awarded. The list will also state the location where the bid quotations are available for public inspection.
(C) Proposals will be solicited from at least five qualified contractors on the small works roster and whenever possible include a qualified minority or woman contractor. (Ord. 1534 § 1, 2013; Ord. 1437 § 1, 2007; Ord. 1127 § 1, 1996).
3.12.050 Architectural and engineering services.
Contracts for architectural and engineering services require conformance with RCW 39.80.010 through 39.80.060. The statute requires advance publication of the requirement for professional services (RCW 39.80.030); evaluation of qualifications and performance data of firms (RCW 39.80.040); the affording of opportunity to minority and women-owned firms to compete for contracts (RCW 39.80.040); and negotiations with firms in accordance with adjudged qualifications (RCW 39.80.050). (Ord. 1127 § 1, 1996).
3.12.060 Competitive bidding.
The city manager shall call for competitive bids when required.
(a) Publication of Notice.
(1) For nonpublic works projects, sealed bids may be invited by a single publication in the official newspaper at least 13 days prior to bid opening and by mailing invitations to interested bidders who have requested their names to be included on a bidder’s list for the type of purchase to be made.
(2) Such notice thereof shall be by publication in the official newspaper of the city 13 days before the date fixed for opening the bids. The notice shall state the title of the project, the nature of the work to be done, that plans and specifications shall be on file in the city available for inspection, the date and time set for the opening of the bids and that bids must be sealed and filed with the city within the time specified therein.
(b) Rejection of Bids. The city manager may reject without cause any and all bids and may readvertise for bids pursuant to the procedures herein described. If no bids are received, the city manager, with approval of the city council, may negotiate the purchase with a vendor at the lowest cost possible to the city.
(c) Performance Bonds. Before entering into a contract, the city manager may require a performance bond in such amount as is reasonably necessary to protect the best interests of the city and to assure complete, proper, and full performance of the contract. A performance bond shall be required on all public works construction projects.
(d) Bid Bonds.
(1) The city manager may require as a condition of bidding a bid bond or a cashier’s check in lieu thereof in the amount of five percent of the amount bid. Such bid bond shall be required on all formally bid public works construction projects.
(2) When the contract is let, all bid bonds shall be returned to the bidders except that of the successful bidder which shall be retained until a contract is entered into and a bond to perform the work furnished as provided above. If the successful bidder fails to enter into the contract in accordance with the bid and furnish such bond within 10 days from the date at which the bidder is notified of bid award, the bid bond shall be forfeited.
(e) Award of Bid.
(1) Except as otherwise provided herein, the city shall accept the bid of the lowest responsible bidder.
(2) Bid awards for contracts and purchases over $20,000 require approval and award of the city council.
(f) Award to Other Than Low Bidder. When the bid award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the city manager and filed with the other papers relating to the transaction. (Ord. 1127 § 1, 1996).
3.12.070 Exemptions to competitive bidding requirements.
(a) Purchases which by their nature are not adapted to competitive bidding, such as purchases of repairs and purchases of items which may, as a practical matter, only be purchased from a single source, and purchases for repairs or additions to equipment owned by the city which may be more efficiently added to by a certain person or firm, shall not be subject to the competitive bidding requirements of this policy.
(b) RCW 39.30.045, Permits to Purchase, Auction, Closeout, Bankruptcy Sales. If an authorized purchasing coordinator determines that supplies, material, or equipment can be purchased at 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 market cost, the city manager may authorize said purchase.
(c) Exchanges. The city may by agreement exchange supplies, materials or equipment with other public agencies.
(d) Interlocal Agreements in Letting of Contracts for Commodities or Services. The city manager may enter into joint purchase agreements (piggybacking) with any and all other agencies for the purchase of any commodity or service as permitted by state law, and where it is determined by the manager to be in the best interest of the city.
(e) Emergency Purchases. In the event that an emergency should arise after office hours, which emergency requires immediate action on the part of the city department involved for the protection of the best interests of the city, or should such a situation arise on a Saturday, Sunday or holiday and where it is not possible or convenient to reach the city manager, any necessary purchase shall be made by the city department for which the purchase is necessary. The purchase shall be reported to the city manager at the first of the next business day. Publication notices may be waived for emergency purchases as provided by law. However, authorized employees must demonstrate a reasonable effort to contact two or more vendors for price quotations.
(f) Real Property. Acquisition of real property is exempt from the competitive bidding requirements of this policy. Upon approval of the city council, the city manager may proceed to acquire real property through negotiation. Such negotiations shall be based upon an independent fee appraisal of the property. The city shall not 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.
(g) Purchases Between $7,500 and $15,000. Any purchase of supplies, material, or equipment except for public work or improvement, where the cost thereof exceeds $7,500, shall be made upon call for bids.
Bids shall be called annually and at a time and in the manner prescribed by ordinance for the publication in a newspaper of general circulation in the city of all notices or newspaper publications required by law. The contract shall be awarded to the lowest responsible bidder.
For advertisement and formal sealed bidding to be dispensed with as to purchases between $7,500 and $15,000, the council or commission must authorize by resolution use of the uniform procedure provided in RCW 39.04.190. (Ord. 1657 § 1, 2020; Ord. 1127 § 1, 1996).
3.12.080 Prohibited practices.
(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 void. Such bidders may be subject to possible exclusion from future bidding with the city when determined by the city manager to be in the best interest of the city.
(b) Disclosure of Formal Bid Contents. Any disclosure in advance of 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 donation 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 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.
(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 disposed of as provided herein. (Ord. 1127 § 1, 1996).
3.12.090 Disposition of public property.
(a) Definition. “Public property” as defined herein means 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. Upon recommendation of the department head, the city manager may declare property surplus upon 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, otherwise inoperable and the cost of repairing the same is unwise or impractical.
(c) Sale of Property.
(1) If a department head or authorized city representative has city property under his or her control or supervision which is deemed surplus to use, said employee shall notify the city manager, 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 manager disagrees, the property may be transferred to the requesting department head, or other authorized representative.
(2) If no request for use of proposed surplus property is received, the city manager may then proceed to direct the disposal of the same by public auction, bid or other method of sale on terms the manager deems to be in the best interest of the city.
(3) Surplus personal property which is unsalable because of obsolescence, wear and tear, or other reasons may be dismantled, if necessary, and sold as scrap.
(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 councilmembers.
(5) The decision to declare surplus real property shall rest solely with the city council. If the city council votes to declare the real property as surplus, the city manager shall secure an independent fee appraisal of the property. The city council shall then determine by resolution the procedure for sale of the property by any one of the following options:
(A) By public auction; or
(B) Through the formal bidding procedures set forth in FMC 3.12.040 as the manager deems to be in the best interest of the city; or
(C) By resolution, council may approve a negotiated disposition of real property, or provide for the conditions of disposition of any such properties.
(d) Trade of Real Property.
(1) If the city manager 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 manager 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 manager considers such bid to be the best offer made, prior to accepting such a bid the manager 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 manager may accept the bid containing in-kind consideration.
(e) Lease of Public Property. When specifically provided for in the city budget, the city manager may authorize the lease or sublease of any property, including real property, under such terms and conditions as the manager 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. (Ord. 1329 § 1, 2003; Ord. 1127 § 1, 1996).