Chapter 2.96
PURCHASING AND CONTRACTS1
Sections:
2.96.050 Professional service contracts.
2.96.080 Cooperative purchasing.
2.96.120 Materials, supplies and equipment – Sole source procurement.
2.96.130 Emergency procurements.
2.96.150 Public work or improvement – Small works roster.
2.96.160 Limited public works.
2.96.170 Bids to comply with regulations.
2.96.200 General standards for determining lowest responsible bidder.
2.96.230 Administrative guidelines, policies and procedures – Purchases for special events.
2.96.250 Compost procurement requirements.
2.96.010 Purpose.
The purpose of this chapter is to protect and advance the public interest by providing for the fair and equitable treatment of all persons involved in the purchasing process, by maximizing the purchasing value of public funds and by providing safeguards for maintaining a purchasing system of quality and integrity. (Ord. 3076, 2001).
2.96.020 Application.
This chapter applies to the award of contracts by the city for: (A) public works and improvements and (B) purchases of materials, supplies, and equipment. This chapter does not apply to the reimbursement of business expenses incurred by employees as governed by Chapter 2.92 MVMC as now or hereafter amended. This chapter does not apply to the purchase of real estate. (Ord. 3076, 2001).
2.96.030 Federal funds.
When a purchase involves the expenditure of federal funds, purchasing shall be conducted in accordance with any applicable federal law or regulation, which applicable federal law or regulation shall supersede the provisions of this chapter. For the purposes of this section, the term “federal law or regulation” shall include those rules and regulations adopted by any state agency and made applicable to the city, or made applicable to a particular purchase to be made by the city, in order to conform either with federal law or to enable the city or the state to remain eligible for federal grant funding. (Ord. 3076, 2001).
2.96.040 Grants.
A. Nothing in this chapter shall prevent the city from complying with the terms and conditions of any grant, gift or bequest, which is otherwise consistent with law.
B. The mayor or his/her designee is authorized to apply for grants in any amount, and to execute grant contracts for grants of not more than $15,000. The mayor or his/her designee shall notify the city council periodically of such grant contracts. (Ord. 3076, 2001).
2.96.050 Professional service contracts.
Contracts for professional services, including contracts for architectural, engineering, legal, financial, insurance, and similar consulting services, are not subject to the requirements of this chapter. The mayor or his/her designee shall promulgate procedures and standards for the approval of such contracts. Contracts for architectural, engineering, and land surveying services, as those services are defined in RCW Title 18, shall be awarded in accordance with Chapter 39.80 RCW. For purposes of this section, “professional services” are those services involving skill, education and special knowledge and where the work is predominately mental, intellectual, or artistic, rather than physical and mechanical. (Ord. 3076, 2001).
2.96.060 Lease agreements.
Lease agreements for materials, supplies and equipment are not subject to the requirements of this chapter, but shall be subject to such procedures as are established by the mayor or his/her designee. All such agreements in excess of $15,000 must, however, be approved by the city council. Lease agreements shall comply with any applicable state law regarding debt capacity. (Ord. 3076, 2001).
2.96.080 Cooperative purchasing.
To the greatest extent allowed by law, the finance director is hereby authorized to join in cooperative purchasing arrangements with other public agencies that are similarly authorized to join in cooperative purchasing arrangements, when the best interests of the city would be served thereby. Cooperative purchasing arrangements entered into under the authority of Chapter 39.34 RCW, Interlocal Agreements, shall comply with the requirements of that chapter. Any other cooperative purchasing agreement shall set forth fully the purposes, powers, rights, objectives and responsibilities of the contracting parties and shall be governed by the requirements of state law in regard to competitive bidding when applicable. An interlocal agreement that establishes a small works roster or rosters to be used by the parties to the agreement shall clearly identify the lead entity that is responsible for implementing the provisions of Chapter 39.34 RCW. (Ord. 3076, 2001).
2.96.120 Materials, supplies and equipment – Sole source procurement.
A contract for the purchase of materials, supplies or equipment may be awarded without complying with the bidding requirements of this chapter when the finance director determines in writing, after conducting a good faith review of available sources, that there is only one source for the required materials, supplies or equipment. The finance director shall conduct negotiations, as appropriate, as to price, terms, and delivery time. A record of sole source procurements shall be maintained that lists each contractor’s name, the amount and type of each contract, and a listing of the item(s) procured under each contract. (Ord. 3076, 2001).
2.96.130 Emergency procurements.
Notwithstanding any other provisions of this chapter, the mayor or his/her designated agent may make or authorize others to make emergency procurements of materials, supplies, or equipment, without complying with the requirements of this chapter when there exists a threat to public health, welfare, or safety or where the city may suffer a substantial monetary loss by reason of the time required to follow regular purchasing procedures; provided, that such emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file. As soon as practicable, a record of each emergency procurement shall be made and shall set forth the contractor’s name, the amount and type of the contract, and a listing of the item(s) procured under the contract, which shall be reported to the city council at the next subsequent meeting. (Ord. 3076, 2001).
2.96.150 Public work or improvement – Small works roster.
A. The city may utilize a small works roster process as authorized pursuant to Chapter 39.04 RCW for the award contracts for the construction, building, renovation, remodeling, alteration, repair, or improvement of real property. The small works roster provisions as described in this section and in Chapter 39.04 RCW may be used in lieu of other procedures to award contracts for such work with an estimated cost of $300,000 or less. The finance director or public works director may create a single general small works roster, or may create a small works roster for different specialties or categories of anticipated work. The city may contract with a third party to create and maintain a shared roster or rosters as allowed to the city and other public agency members by RCW 39.04.155 and Chapter 39.80 RCW, respectively.
B. Where applicable, small works rosters may make distinctions between contractors based upon different geographic areas served by the contractor. The small works roster or rosters shall consist of all responsible contractors who have requested to be on the list, and where required by law are properly licensed or registered to perform such work in this state.
C. The finance director or public works director may require eligible contractors desiring to be placed on a roster or rosters to keep current records of any applicable licenses, certifications, registrations, bonding, insurance, or other appropriate matters on file with the city as a condition of being placed on a roster or rosters.
D. At least once a year, the finance director or public works director shall cause to be published in the official newspaper of the city a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters; provided however, that in lieu of or in addition to the publication of the existence of the roster or rosters, the city, the finance director or public works director may contract with a third party to publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters. In addition, responsible contractors shall be added to an appropriate roster or rosters at any time they submit a written request and necessary records. Master contracts may be required to be signed that become effective when a specific award is made using a small works roster.
E. The finance director or public works director shall establish procedures for securing telephone, written, or electronic quotations from contractors on the appropriate small works roster to assure that a competitive price is established and to award contracts to the lowest responsible bidder, as defined in RCW 39.04.010. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However, detailed plans and specifications need not be included in the invitation. Quotations may be invited from all appropriate contractors on the appropriate small works roster. As an alternative, quotations may be invited from at least five contractors on the appropriate small works roster who have indicated the capability of performing the kind of work being contracted, in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster. However, if the city elects to solicit bids from less than all the contractors on the appropriate small works roster and the estimated cost of the work is from $150,000 to $300,000, then the finance director or public works director shall also notify the remaining contractors on the appropriate small works roster that quotations on the work are being sought. The finance director or public works director has the sole option of determining whether this notice to the remaining contractors is made by:
1. Publishing notice in the city’s legal newspaper in general circulation in the area where the work is to be done;
2. Mailing a notice to the affected contractors; or
3. Sending a notice to these contractors by facsimile or other electronic means.
For purposes of this subsection E, “equitably distribute” means that the city may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services.
F. A contract awarded from a small works roster under this section need not be advertised.
G. A written record shall be made of each contractor’s bid on the project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. (Ord 3549 § 1, 2011; Ord. 3480 § 1, 2010; Ord. 3076, 2001).
2.96.160 Limited public works.
A. In lieu of awarding contracts under MVMC 2.96.150, the city may award a contract for a public work, construction, alteration, repair, or improvement project estimated to cost less than $35,000 using the limited public works process provided under this section.
B. Public works projects awarded under this section are exempt from the requirement that contracts be awarded after advertisement as provided under RCW 39.04.010.
C. For limited public works projects, the city shall solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster established pursuant to MVMC 2.96.150, and shall award the contract to the lowest responsible bidder as defined under RCW 43.19.1911. After an award is made, the quotations shall be open to public inspection and available by electronic request.
D. The city shall attempt to distribute opportunities for limited public works projects equitably among contractors on the appropriate small works roster.
E. The finance director shall maintain a list of the contractors contacted and the contracts awarded during the previous 24 months under the limited public works process, including the name of the contractor, the contractor’s registration number, the amount of the contract, a brief description of the type of work performed, and the date the contract was awarded.
F. For limited public works projects, the city may waive the payment and performance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW, thereby assuming the liability for the contractor’s nonpayment of laborers, mechanics, subcontractors, material men, suppliers, and taxes imposed under RCW Title 82 that may be due from the contractor for the limited public works project; however, the city shall have the right of recovery against the contractor for any payments made on the contractor’s behalf. (Ord. 3076, 2001).
2.96.170 Bids to comply with regulations.
All bids offered by persons, associations or corporations desiring to sell or supply material, equipment, or supplies to, or to construct a public work or improvement for, the city, shall comply strictly with the terms of the notice of invitation for bids and the specifications and evaluation criteria issued or published by the city in connection therewith, together with all relevant state laws, the terms of which shall be deemed included in such specifications whether or not they are expressly set out therein. (Ord. 3076, 2001).
2.96.200 General standards for determining lowest responsible bidder.
The city shall award the contract for the public works project to the lowest responsible bidder; provided, that the city may reject all bids and call for new bids. A responsible bidder shall be a registered and/or licensed contractor who meets the mandatory bidder responsibility criteria established by Chapter 39.04 RCW and who meets any supplementary bidder responsibility criteria established by the city. (Ord. 3549 § 2, 2011; Ord. 3076, 2001).
2.96.230 Administrative guidelines, policies and procedures – Purchases for special events.
The mayor or his/her designee may promulgate procedures to govern the purchase of supplies, such as food, beverages, decorations and awards for public events and employee activities, including employee of the year recognition, volunteer recognition and ceremonial openings of public facilities. (Ord. 3076, 2001).
2.96.240 Other contracts.
The mayor or his/her designee may promulgate procedures for the approval of all other contracts not otherwise covered by this chapter. These contracts shall include, but shall not be limited to, nonprofessional service contracts, maintenance agreements and contracts, instructor contracts, entertainment contracts and any other personal service contract. (Ord. 3076, 2001).
2.96.250 Compost procurement requirements.
A. When planning government-funded projects or soliciting and reviewing bids for such projects, the city shall consider whether compost products can be utilized in the project. If compost products can be utilized in the project, the city shall use compost products to the extent required by law, including, without limitation, RCW 43.19A.120(2).
B. To the extent required by RCW 43.19A.150(3), the city shall plan for the use of compost in the following categories:
1. Landscaping projects;
2. Construction and postconstruction soil amendments;
3. Applications to prevent erosion, filter stormwater runoff, promote vegetation growth, or improve the stability and longevity of roadways; and
4. Low-impact development and green infrastructure to filter pollutants or keep water on site, or both.
This plan will be reassessed each December 31st of even-numbered years, beginning in 2024 and thereafter as part of the reporting obligations in subsection D of this section.
C. To the extent required by RCW 43.19A.150(4), the city will develop strategies to inform residents about the value of compost and how the city uses compost in its operations.
D. To the extent required by RCW 43.19A.150(5), by December 31, 2024, and each December 31st of even-numbered years thereafter, the city shall prepare a report for the Department of Ecology covering the previous year’s compost procurement activities, including the following information:
1. Total tons of organic material diverted each year;
2. The volume and cost of compost purchased each year; and
3. The source(s) of the compost purchased.
E. To the extent required by RCW 43.19A.150(6), the city shall give priority to purchasing compost products from companies that produce compost products locally, are certified by a nationally recognized organization, and produce compost products that are derived from municipal solid waste compost programs and meet quality standards comparable to standards adopted by the Department of Transportation or adopted by rule by the Department of Ecology.
F. In accordance with RCW 39.30.040(1), the city may allow for the preferential purchase of compost to meet the requirements of RCW 43.19A.120. (Ord. 3863 § 1, 2022).
Code reviser’s note: Ordinance No. 3076 adds these provisions as Chapter 2.94. The chapter has been editorially renumbered to prevent duplication of numbering.