Chapter 5.55
PROCUREMENT, PURCHASING AND CONTRACTING
Sections:
5.55.080 Consultant roster and roster procedures.
5.55.090 Conflicts of interest.
5.55.110 Compliance evaluation.
5.55.120 Formal competitive sealed bid.
5.55.010 Policies adopted.
The procurement, purchasing and contracting policies, both the former and the updated policies, attached to the resolution codified in this chapter as Exhibits A and B and incorporated herein by this reference, are hereby adopted to provide a uniform system to procure goods and services, as well as undertake contracting for the Sewer District. [Res. 977 § 1, 2020; Res. 884 § 1, 2014.]
5.55.020 Implementation.
The General Manager is directed to oversee the implementation of the procurement, purchasing and contracting policies adopted in this chapter. [Res. 977 § 2, 2020; Res. 884 § 2, 2014.]
5.55.030 Purpose.
The purpose of this policy is to establish consistent policies for purchasing materials, supplies, equipment, goods, contracts and professional services, excluding training. [Res. 977 § 1 (Exh. A § 1), 2020; Res. 884 § 1 (Exh. A § 1), 2014.]
5.55.040 Goals.
(1) Provide a uniform system to procure goods and services as efficiently and economically as possible.
(2) Maintain public confidence in the procedures followed by the District in purchasing materials, supplies and equipment. [Res. 977 § 1 (Exh. A § 2), 2020; Res. 884 § 1 (Exh. A § 2), 2014.]
5.55.050 Scope.
All employees of the District must comply with this policy. [Res. 977 § 1 (Exh. A § 3), 2020; Res. 884 § 1 (Exh. A § 3), 2014.]
5.55.060 Controlling laws.
(1) The purchasing of materials, supplies and equipment is governed by RCW 39.04.190 and 57.08.050 and other applicable Washington law.
(2) The purchasing of materials, supplies and equipment is governed by applicable District resolutions, policies and procedures.
(3) Purchasing of any services for maintaining of District assets is a prevailing wage job and requires following the prevailing wage law. [Res. 977 § 1 (Exh. A § 4), 2020; Res. 884 § 1 (Exh. A § 4), 2014.]
5.55.070 Policy.
(1) The following procedures must be followed when purchasing materials, supplies, goods, equipment, or services, excluding training.
(2) A purchase requisition (PR) order form is used as the first step in the purchasing procedure for goods or services, excluding training, over $500.00 up to $2,499. A PR form should be submitted to the employee’s department supervisor or manager or, in their absence, the General Manager for authorization prior to the time the materials, supplies, equipment, goods, contracts and professional services are needed to allow adequate time for review. The signed PR must be submitted to the District’s staff member responsible for accounts payable with the packing slip and written quotes when applicable.
A PR is an internal form that communicates the need to make a purchase and must not be provided to a vendor. The person initiating the requisition is responsible for ensuring that it is complete and accurate.
(3) All purchases of $2,500 up to $4,999 shall require a purchase order (PO) to be filled out. The person initiating the PO is responsible for ensuring that it is complete and accurate and it must be cosigned by the department supervisor or General Manager.
(a) A signed copy of the PO must go to the vendor.
(b) The signed original PO must be submitted to the District’s staff member responsible for accounts payable, along with the packing slip and written quotes when applicable.
(c) When quotes are required, they must be secured in writing from the provider. Electronically is acceptable.
(4) The General Manager or his/her designee is authorized to purchase materials, supplies, equipment, goods, contracts and professional services, excluding training, between $5,000 and $34,999 that are not budgeted items.
(a) At least three price quotes must be secured in writing from vendor (electrically is allowed) and must be attached to the original PO.
(b) A PO must be signed prior to purchase.
(c) The signed original PO must be submitted to the District’s staff member responsible for accounts payable.
(5) Any purchase of materials, supplies, equipment, goods, contracts and professional services, excluding training, with an estimated cost between $30,000 and $49,999 shall require at least three written quotes secured electronically or by mail. The purchase must adhere to the contract and must be authorized by the Board of Commissioners. Bid award or rejection of all bids must be determined by the Board of Commissioners.
(6) Any materials, supplies, equipment, goods, contracts and professional services, excluding training, exceeding $50,000 must be authorized by the Board of Commissioners prior to calling for bids. A minimum of five bids is required. District employees will use their knowledge of supplies, products required, quality, services, delivery dates, and vendor’s costs as well as expert advisor information and advice to purchase needed items.
(a) Purchases must be made as economically as possible with respect to dollar value of the order for materials, supplies, equipment, goods, contracts and professional services.
(b) Bid specifications must incorporate a clear and accurate description of the technical requirements for the materials, supplies, equipment, goods, contracts and professional services, excluding training, to be procured. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equal” description may be used.
(c) Bid award or rejection of all bids over $35,000 must be by the Board of Commissioners.
(7) Sole Source or Proprietary Purchase. When the purchase of a particular brand, over $5,000 in value, is necessary to meet the District’s operational requirements, and there is only one source capable of supplying the subject matter in a timely fashion, purchases may be made directly from the sole source vendor without soliciting formal sealed bids. If a product is available from only one supplier, written documentation must be prepared establishing that advertising for bids would be nonproductive and would produce only one bid. Sole source purchases must be approved by the Board of Commissioners.
(8) Purchases from Formal Bids of Other Agencies. The Board of Commissioners may authorize purchases based on the low bid obtained through the formal bidding process of other governmental agencies. As often as is practicable, the District will include language in its bid specifications that allows other public agencies to purchase from District bids; provided, that the other agencies allow similar rights and reciprocal privileges to the District and provide the bids they have received to the District in writing.
(9) Where applicable, MRSC (Municipal Research and Services Center, www.mrsc.org, www.mrscrosters.org) rosters and procedures may be utilized to meet the requirement of these policies where applicable. However, all purchase cost ranges in the policy sections herein shall apply as now written, unless modified by future resolution and/or requirements of State law except where local adopted policy cost ranges are more limiting. [Res. 977 § 1 (Exh. A §§ 5.1 – 5.9), 2020; Res. 884 § 1 (Exh. A §§ 5.1 – 5.14), 2014.]
5.55.080 Consultant roster and roster procedures.
(1) Contracts for professional architectural, landscape architecture, surveying and engineering services require quality based selection (QBS) and an advertising and negotiation process in accordance with Chapter 39.80 RCW. Advance publication of consultant contracts is required by RCW 39.80.030. This RCW provides two options that may be used to comply with the “advance publication” requirement for procurement of professional services: (a) publishing an announcement on each occasion when professional services provided by a consultant are required by the agency; (b) announcing generally to the public its projected requirements for any category or type of professional services (contract from established consultant roster). These contracts may be amended from time to time to provide for specific scopes of work in addition to the general levels of service as determined by District need and requirement. The District utilizes both methods under specific circumstances based on the estimated fee for the proposed project.
Look at: http://www.mrsc.org/pubworks/construct/conman2.htm
(2) Purchase of Other Consulting Services.
(a) Consultants, such as legal, financial and environmental, must be solicited through the request for qualifications (RFQ), interview, and contract negotiation procedures. These contracts may be amended from time to time to provide for specific scopes of work in addition to the general levels of service as determined by District need and requirement.
(b) Contracts for other professional services (defined as activities such as consulting that have a primarily intellectual final product) may or may not require an advertising and negotiation process, depending on District needs and management requirements and/or Board of Commissioner determinations.
(3) Professional Services and Consulting Services Reviews. Each contract must be reviewed and evaluated at least every three years, but may be reviewed and evaluated more frequently at the discretion of the Board of Commissioners. The General Manager may annually review professional and consulting services to determine satisfactory performance and adequacy and may make recommendations to the Board of Commissioners for contract modifications, level of satisfaction or need for termination and replacement of these services. The Board of Commissioners may extend or renegotiate the existing contract for services or may elect to proceed with quality based selection (QBS) processes or requests for proposals (RFPs). [Res. 977 § 1 (Exh. A § 5.10), 2020; amended during 2014 recodification; Res. 884 § 1 (Exh. A § 5.15), 2014.]
5.55.090 Conflicts of interest.
(1) No District employee shall engage in any act that conflicts with or creates an appearance of conflict with the performance of their employment responsibilities. Any employee is deemed to have a conflict of interest if the employee:
(a) Receives or has any financial interest in any sale to the District or any knowledge that the District intended to purchase such property or obtain such service.
(b) Engages in, accepts private employment from or renders services for private interest when such employment or service is incompatible with the proper discharge of their employment responsibilities or would tend to impair independence of judgment or action in the performance of their employment responsibilities.
(c) Discloses or uses, without legal authorization, confidential information concerning the property or affairs of the District to advance a private interest with respect to any contract or transaction which is or may be the subject of official action of the District.
(d) Uses their position with the District to make recommendations to the public regarding private contractors where they have a financial interest in the firm or company.
(e) Solicits, accepts or seeks anything of economic value over $25.00 on an occasional basis as a gift, gratuity or favor from any person, firm or corporation involved in a contract or transaction which is or may be the subject of official action of the District.
(2) The following are considered appropriate actions by District personnel:
(a) Attendance of an employee at a meal when it is provided in connection with a meeting directly related to the conduct of District business or where the employee attends the meeting or a meal as a staff representative.
(b) An award publicly presented in recognition of public service.
(c) Any gift which would have been offered or given to the employee if he or she were not a District employee.
(d) Advertising novelties not exceeding $25.00 in value which are widely distributed to others under essentially the same business relationship with the donor.
(e) Company product models and pictures made generally available under customer and public relations programs. [Res. 977 § 1 (Exh. A § 5.11), 2020; Res. 884 § 1 (Exh. A § 5.16), 2014.]
5.55.100 Emergencies.
Formal competitive bidding shall not be required in the instance of a purchase made or contract for public works entered into pursuant to a resolution by the Board of Commissioners declaring an emergency pursuant to RCW 39.04.280 or as such statute may be modified or amended. If the emergency is of such urgency to preclude any delay, the General Manager may authorize purchases made and contracts entered into so long as a resolution declaring an emergency to exist is brought before the Board of Commissioners as soon as possible. An emergency resolution must declare the emergency, recite the facts constituting the emergency, enumerate the purchases and their costs, and waive the bid requirements within two weeks, or next scheduled Board meeting, of finding that an emergency existed. An emergency can be declared where it is essential to the health, safety, or welfare of the public that immediate action be taken. Emergency procurements are to be made with such competition as is practicable under the circumstances. Emergency items and services less than $50,000 with documentation and explanation must be provided at the soonest possible Board meeting. [Res. 977 § 1 (Exh. A § 5.12), 2020; Res. 884 § 1 (Exh. A § 5.17), 2014.]
5.55.110 Compliance evaluation.
The General Manager shall be responsible for monitoring and evaluating compliance with this policy. Upon discovery of a deviation from this policy, the General Manager will first attempt to resolve it with the department head in question. In the event this is unsuccessful, the problem must be referred to the Board of Commissioners. [Res. 977 § 1 (Exh. A § 5.13), 2020; Res. 884 § 1 (Exh. A § 5.18), 2014.]
5.55.120 Formal competitive sealed bid.
(1) Public works projects of more than $350,000 will be awarded by formal competitive sealed bid process and subject to provisions of Washington State law as is then current or may be amended. The specific terms and requirements of the process must be included in the bid documents for the specific projects as prepared by the District Engineers or appropriate expert advisor and approved by the Board of Commissioners. The usual terms and requirements of this formal competitive bidding process will generally follow the process outlined below in this section.1
(2) The Board of Commissioners shall approve the call for bids. Once approved, the District Engineer(s) or appropriate expert advisor(s) will obtain sealed bids in response to written plans and specifications. Specifications should not contain features that unduly restrict competition.
(3) At least one notice of the call for bids must be published in a newspaper of local circulation. Advertisement must occur a minimum of 13 days prior to bid opening. Other methods may be used to attract potential bidders in addition to, but not in place of, publication in a newspaper of local circulation. For example, notices may be placed on the District’s website or advertised in trade papers or magazines.
(4) Sealed bids will be submitted to the General Manager, District Engineer or department designee. At the appointed time, all bids will be opened and read aloud in the presence of the bidders or their representatives.
(5) Every bidder for a public works contract over $350,000 must submit, with the bid or within one hour of the published bid submittal time, the names of all the subcontractors with whom the bidder will subcontract. When a bidder is successfully awarded the contract, he/she is obligated to use these subcontractors named on the list. If such a list is not provided, the bid will be considered nonresponsive.2
(6) Bid bonds are required on public works projects to help ensure that a bid has been made in good faith and that the bidder will enter into a contract if the bid is accepted. RCW 35.23.352(1) requires that each bid shall be accompanied by a bid proposal deposit in the form of a cashier’s check, money order or surety bond made payable to the District for a minimum amount of five percent of the bid amount, including sales tax. Pursuant to State law, “no bid shall be considered unless accompanied by such bid proposal deposit.”
(7) RCW 39.08.010 provides that a municipality shall require a performance bond whenever it enters into a public works contract to ensure that the job will be completed and that all workers, subcontractors and suppliers will be paid. A failure to obtain such a bond subjects the District to all claims of persons performing the contract.3
(8) Public works contracts must contain a provision requiring the local government to retain an amount not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and collection of claims by any persons arising under the contract and the State with respect to taxes that may be due from the contractor. The money so reserved must be, at the option of the contractor:
(a) Retained in a fund by the public body;
(b) Deposited in an interest-bearing account in a bank, mutual savings bank or savings and loan association;
(c) Placed in escrow with a bank or trust company.
(9) Interest on these moneys must be paid to the contractor.4
(10) District Counsel shall review the contract and general and special conditions form. Contracts must be awarded by the Board of Commissioners and signed by the President of the Board. [Res. 977 § 1 (Exh. A § 5.15), 2020; Res. 884 § 1 (Exh. A § 5.20), 2014.]
5.55.130 Award.
The District Commission shall award the contract based on expert information and recommendation to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If there are questions or concerns regarding whether a bidder is responsible, refer to District Counsel and/or appropriate expert advisor for guidance. [Res. 977 § 1 (Exh. A § 6.1), 2020; amended during 2014 recodification; Res. 884 § 1 (Exh. A § 6.4.1), 2014.]
5.55.140 Rejection of bids.
The District reserves the right to reject any bid not in substantial compliance with the bid documents or all prescribed public bidding procedures and requirements, and may reject for good cause any or all bids upon a finding of the District that it is in the public interest to do so.
|
REF |
PURCHASE AMOUNT |
PURCHASING PROCESS |
OTHER REQUIREMENTS |
CONTRACT AUTHORIZATION |
|---|---|---|---|---|
|
5.55.070(1) |
Up to $499 |
Exempt – None |
Receipt to accounts payable |
None |
|
5.55.070(2) |
Over $500 |
Purchase requisition |
PR signed by Manager or designated lead of department or General Manager |
Requisition to be preauthorized by Manager, designated lead or General Manager |
|
5.55.070(3) |
Over $2,500 |
Purchase Order |
Department supervisor or General Manager |
Contract might be advisable, to be determined by General Manager |
|
5.55.070(4) |
Over $5,000 |
At least 3 electronic or written price quotes from vendors list or applicable MRSC roster |
Written general scope of work. Original PO attached and signed |
Contract may be advisable, to be determined by General Manager |
|
5.55.070(4) |
Items included in annual budget |
General Manager okayed |
If included in annual budget guidelines of current year |
General Manager or designee |
|
5.55.070(5) |
Over $30,000 |
5 written quotes required vendor lists, District roster, or MRSC roster |
Scope of work required. Contract required. |
Board awarded |
|
5.55.070(6) |
$50,000 and up |
At least 5 formal competitive sealed bids, bid documents required. Notice to all appropriate contractors on roster. |
Contract required |
Board preauthorization. Board awarded based on expert information. |
|
Emergency under $50,000 |
Formal competitive bid scope and bid documents required |
Contract required |
Board preauthorization. Board awarded based on expert information. |
[Res. 977 § 1 (Exh. A § 6.2), 2020; Res. 884 § 1 (Exh. A § 6.4.2), 2014.]
RCW 35.23.352(1).
This amendment was included in Chapter 94, Laws of 1995.
RCW 39.08.015.
RCW 60.28.011.