Chapter 3.16
CONTRACTS Revised 9/24
3.16.000 Chapter Contents
Sections:
3.16.010 Purpose. Revised 9/24
3.16.020 City Council Approval. Revised 9/24
3.16.030 City Manager Approval. Revised 9/24
3.16.040 City Manager Authorized to Delegate Certain Execution Authority. Revised 9/24
3.16.050 City Manager Authority--Rules and Regulations for Contracting. Revised 9/24
3.16.055 Documents to be Filed with the City Clerk. Revised 9/24
3.16.060 Small Works Roster Established. Revised 9/24
3.16.070 Method of Establishment of Small Works Roster. Revised 9/24
3.16.080 Procedure for Utilization of Small Works Roster. Revised 9/24
3.16.090 Posting of Small Works Roster Awards. Revised 9/24
3.16.100 Public Works Construction Contracts--Change Order Level of Authority. Revised 9/24
3.16.120 Public Works Construction Contracts--Bond Reduction. Revised 9/24
(Ord. 7402 §1, 2024; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005, Repeal Chapter 3.16 and created New Chapter 3.16).
3.16.010 Purpose Revised 9/24
The purpose of this chapter is to establish a uniform practice for approval and execution of City of Olympia contracts, ensure City Council review of important and legally required contracts and other legal instruments, provide for efficient, streamlined preparation and execution of other contracts not requiring Council review, while also ensuring accountability by limiting the number of individuals authorized to execute contracts on the City’s behalf. In addition, the purpose is to delegate to the City Manager authority to establish rules for competitive bidding where required by law and the acquisition of goods, services, and materials so long as such rules are with sound management practices and designed to secure the best quality for a fair price. The final purpose is to provide procedures for the creation and operation of a small works roster.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005).
3.16.020 City Council Approval Revised 9/24
The following documents and instruments shall be presented to the City Council for approval prior to their execution by the City Manager:
A. Interlocal agreements: All contracts, agreements, memoranda of understanding, or other documents between the City of Olympia and any other governmental agency or agencies that are entered into pursuant to the supplemental authority for the City to contract in Chapter 39.34 RCW.
B. Instruments pertaining to real property: any contract, agreement, lease, easement, bill of sale, or other instrument pertaining to the City’s use, disposition, conveyance, or acquisition of real property.
Exceptions:
(1) An acceptance by the City in its regulatory capacity of a dedication from a development is not subject to Council approval.
(2) Temporary construction licenses are not subject to Council approval.
(3) The City Manager is authorized to sign the following without further City Council approval: All instruments pertaining to the City’s use, disposition, conveyance, or acquisition of real property by whatever method, provided that such transaction is associated with a capital improvement project that has been previously approved by Council.
C. Any contract, agreement, or other document with a cost over $350,000.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 7186 §1, 2019; Ord. 7000 §1, 2016; Ord. 6840 §1, 2013; Ord. 6656 §1, 2009; Ord. 6364 §1, 2005).
3.16.030 City Manager Approval Revised 9/24
A. The City Manager or the City Manager’s designee, is authorized to approve and execute on behalf of the City of Olympia any contract, agreement, or document not otherwise subject to OMC 3.16.020 and costing up to, and including, $350,000.
B. The City Manager or the City Manager’s designee, is authorized to:
1. declare any public work an emergency, if it meets the criteria outlined under RCW 39.04.280. A written finding of the emergency must be filed with the City Clerk no later than two weeks following contractor award of such work.
2. make written policies governing the waiver of competitive bidding requirements, provided the purchase or project qualifies for waiver under RCW 39.04.280, or other state or local law. Immediately following contract award, the contract and the factual basis for the exemption from public bidding must be recorded and open for public inspection.
3. make a final decision to deem a contractor not-responsible and/or to reject bids for any public works project that falls within the City Manager’s contract authority under this chapter.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005).
3.16.040 City Manager Authorized to Delegate Certain Execution Authority Revised 9/24
The City Manager is authorized, but not required, to delegate to an Assistant City Manager or their designee; or a department director or their designee; the authority to approve and execute on behalf of the City of Olympia any contract, agreement or document not otherwise subject to OMC 3.16.020 and with an amount equal to or less than the amount delegated to the City Manager.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6656 §1, 2009; Ord. 6364 §1, 2005).
3.16.050 City Manager Authority--Rules and Regulations for Contracting Revised 9/24
The City Manager is authorized to establish written rules and regulations for the construction/acquisition of public works, and the procurement of goods, services, and materials by the City. Such rules and regulations shall be governed by sound management practices designed to secure the best quality at a fair price and comply with applicable state and federal laws and regulations. As such rules and regulations are established, copies shall be sent to the City Council; provided, however, that inadvertent failure to send such rules and regulations to the City Council shall not be grounds to invalidate any action by the City Manager or the City Manager’s designee which is otherwise lawful. The City Manager is authorized to revise the rules and regulations from time to time as circumstances change or as the City Manager may, in the City Manager’s discretion, deem appropriate.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 7187 §3, 2019; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005).
3.16.055 Documents to be Filed with the City Clerk Revised 9/24
One (1) original of any document governed by OMC 3.16.020 through 3.16.040 shall be filed with the City Clerk; provided, however, that failure to so file any such document shall not invalidate or excuse performance of any obligations contained therein.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005).
3.16.060 Small Works Roster Established Revised 9/24
The City Engineer or the City Engineer’s designee (collectively hereafter Engineer) is authorized and directed to establish a City construction contractor’s small works rosters comprised of all contractors who request to be on the rosters and who are, where required by law, properly licensed or registered and bonded to perform contracting work in the State of Washington.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 7187 §3, 2019; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005).
3.16.070 Method of Establishment of Small Works Roster Revised 9/24
The City of Olympia may establish the small works roster through contract with the Municipal Research and Services Center of Washington (MRSC) to adopt for City use those statewide electronic databases for small public works rosters developed and maintained by MRSC. At least once per year, on behalf of the City, MRSC shall 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. Responsible contractors shall be added to appropriate MRSC Roster(s) at any time that they submit a written request and necessary records. The City may require master contracts to be signed that become effective when a specific award is made using a small works roster.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6693 § 1, 2010; Ord. 6364 § 1, 2005).
3.16.080 Procedure for Utilization of Small Works Roster Revised 9/24
A. The small works roster may be utilized, in lieu of advertising or requesting formal bids, as follows:
1. Whenever the City seeks to construct any public work project in which the total estimated cost, including costs of materials, supplies, labor, and equipment is within the threshold defined in RCW 39.04.152(1).
2. When the small works roster is utilized, the City shall invite written or electronic proposals from all appropriate contractors on the appropriate small works roster. The City Engineer shall establish procedures for securing telephone, written, or electronic quotations.
3. The invitation to the contractor on the small works roster shall include an estimate of the scope and nature of the work to be performed, materials and equipment to be furnished, and time required for completion. However, detailed plans and specifications need not be included in the invitation. This subsection does not eliminate other requirements for architectural or engineering approvals as to quality and compliance with building codes.
4. When awarding a contract for work under the small works roster, the City shall award the contract to the contractor submitting the lowest responsive, responsible bid; provided, however, that the City reserves its right under applicable law to reject any or all bids, and to waive procedural irregularities.
5. A contract awarded from a small works roster under this section need not be advertised.
6. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by at least one of the following: telephone or electronic request.
B. The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the small works roster process.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 7187 §3, 2019; Ord. 6840 §1, 2013; Ord. 6656 §1, 2009; Ord. 6364 §1, 2005).
3.16.090 Posting of Small Works Roster Awards Revised 9/24
When the City utilizes the small works roster procedure as established in OMC 3.16.080 to award contract for public works projects, the City shall post a list of the contracts awarded under OMC 3.16.080. The list shall contain the name of the contractor awarded the contract, the amount of the contract, a brief description of the type of work performed, and the date of the award, and shall be posted on the City’s electronic web page.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord. 6364 §1, 2005).
3.16.100 Public Works Construction Contracts--Change Order Level of Authority Revised 9/24
The City Manager or the City Manager’s designee is authorized to approve change orders with a cumulative total of $350,000 or less for any project. Council approval is required for cumulative change orders totaling over $350,000 for a project, except when such approval is deemed “urgent” by the City Manager. An “urgent” change order is defined as one where delay in implementation could cause environmental or property damage or endanger public safety, as determined by the City Manager. An “urgent” determination may also be made when delays are estimated to cost the City of Olympia $1,000 or more per day.
(Ord. 7402 §1, 2024; Ord. 7255 §1, 2020; Ord. 7250 §3, 2020; Ord. 6840 §1, 2013; Ord 6656 §1, 2009; Ord. 6364 §1, 2005).
3.16.120 Public Works Construction Contracts--Bond Reduction Revised 9/24
As authorized by RCW 39.08.030(1)(a), the City may, at its option, reduce the amount of a performance bond to not less than 25 percent of the total contract amount for public works contracts.
(Ord. 7402 §1, 2024).