Chapter 3.35
CONTRACT AUTHORITY

Sections:

3.35.005    Definitions.

3.35.010    Contract authority.

3.35.020    Rules and policy.

3.35.030    Administration.

3.35.040    Prohibited practices.

3.35.005 Definitions.

The terms defined in SVMC 3.35.005 shall apply to Chapters 3.35, 3.36, 3.40, 3.41, 3.42, 3.45, 3.46, 3.47, 3.48, and 3.49 SVMC and shall have the following meanings:

“Architectural and engineering services” means professional services rendered by any person, other than an employee of the City, contracting to perform activities within the scope of the general definition of professional practice in Chapter 18.08, 18.43, or 18.96 RCW.

“Bid” means an offer submitted by a bidder to furnish services, labor, supplies, materials, goods, 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.

“Bid bond” means a bond or other appropriate bid proposal deposit as approved in advance by the City, the purpose of which is to provide security to the City in the event the successful bidder fails to enter into a contract with the City.

“Bidder” means a firm or individual who regularly maintains a place of business, transacts business, solicits business, or maintains an inventory of merchandise for sale in, and whose business is registered with, the City and who submits or has submitted a bid to the City.

“Bidding” means the procedure used to solicit quotations on price and delivery from prospective suppliers of contractual services, materials, goods, and equipment which can be through either a formal or informal competitive bid process.

“Capital equipment” means any equipment of the City having an initial value of $5,000 or more and an estimated useful life of three or more years.

“Change orders” and “requests for additional work” mean a request for additional or alternative services, work or procurement where there are changed conditions, a requirement that extra work or service be performed, or such other circumstances that necessitate a modification to the contract, and where such additional or alternative services, work, or procurement is in the best interest of the City.

“City manager” means the city manager or designee.

“City property” means any property or equity interest in real or personal property held or owned by the City.

“Consultant” means any person providing professional services to the City who is not an employee of the City.

“Contractual services” means services provided by professional and general service contracts to accomplish a particular project or service.

“Federal micro-purchase threshold” means the dollar amount at or below which the City may purchase property or services using federal micro-purchasing procedures pursuant to 2 CFR 200.320 and Chapter 3.36 SVMC. Under no circumstance can the City’s federal micro-purchase threshold exceed the dollar values established in 48 CFR Part 2, Subpart 2.1 (micro-purchase threshold), $10,000; except as follows:

1. For acquisitions of construction subject to 40 U.S.C. Chapter 31, subchapter IV, Wage Rate Requirements (Construction), $2,000;

2. For acquisitions of services subject to U.S.C. Chapter 67, Service Contract Labor Standards, $2,500;

3. For acquisitions of supplies or services that, as determined by the city manager, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; or to support response to an emergency or major disaster (42 U.S.C. 5122), as described in 13.201(g)(1), except for construction subject to 40 U.S.C. Chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903), $20,000;

4. For acquisitions of supplies or services from institutions of higher education (20 U.S.C. 1001(a)) or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutes, $10,000, or such higher threshold as determined appropriate by the city manager consistent with clean audit findings under 31 U.S.C. Chapter 75, Requirements for Single Audits; an internal City risk assessment; or Washington State law.

“Federal simplified acquisition threshold” means the dollar amount below which the City may purchase property or services using small purchase methods to expedite purchase of items at or below the federal simplified acquisition threshold while using federal funding. In no circumstances can the City’s threshold exceed the dollar values established in 48 CFR Part 2, Subpart 2.1 (simplified acquisition threshold), $250,000; except the dollar value is $800,000 for acquisitions of supplies or services that, as determined by the city manager, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; or to support response to an emergency or major disaster (41 U.S.C. 1903, 42 U.S.C. 5122).

“Lowest responsible bidder” means the responsible bidder who submits the lowest bid; or, if all of the criteria set forth in RCW 35.23.352(2) are met, the responsible bidder who submits the second lowest bid, provided the bid is within five percent of the lowest bid and the second lowest bidder meets the same criteria as the lowest bidder.

“Person” means any individual, organization, group, association, partnership, firm, joint venture, corporation, or any combination thereof.

“Public work” has the meaning set forth in RCW 39.04.010, as adopted or may be amended.

“Purchase” means the acquisition of supplies, materials, goods or equipment, and other property.

“Purchase order” means a written authorization calling on a vendor or supplier to furnish supplies, materials, goods, equipment, and other personal property to the City with a promise for payment to be made later.

“Purchasing agent” means a person who purchases supplies, materials, goods, equipment, and other property on behalf of the City.

“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.

“Responsible bidder” means a bidder who meets the requirements set forth in RCW 39.04.350 as adopted or may be amended. Additionally, a bidder shall prove by experience or information furnished to the satisfaction of the city manager 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 and who has not violated or attempted to violate any provision of Chapter 3.35 SVMC. In addition to price, the City shall take into account the following when determining the responsible bidder:

1. The ability, capacity, and skill of the bidder to perform the contract or provide the service required;

2. The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

3. Whether the contractor can perform the required work within the time specified by the City;

4. Quality of the contractor’s performance under previous contracts with the City or other governmental entity; and

5. The previous and existing compliance by the contractor with laws relating to contracts or services with the City.

The five supplemental criteria described above shall be included in the documents for all bids so prospective bidders may be aware of such supplemental criteria. The City may include additional supplemental criteria as provided in RCW 39.04.350 for particular projects as is determined necessary. (Ord. 23-013 § 2, 2023; Ord. 19-021 § 2 (Exh. A), 2019; Ord. 17-012 § 1, 2017; Ord. 15-022 § 4, 2015).

3.35.010 Contract authority.

A. The city manager is authorized to enter into contracts, contract modifications, or change orders without city council approval when the aggregate amount of the contract and all existing contract amendments or change orders does not exceed the amount set forth in RCW 39.04.155 for small works, as adopted or amended; subject to any increases authorized, pursuant to SVMC 3.35.010(C).

B. Any contract, contract amendment, and/or change order in excess of the city manager’s authority shall require prior approval of the city council.

C. On contracts for which prior city council approval is required and received, the city manager shall have authority to execute any amendments or change orders which, when aggregated, are less than 15 percent of the original contract amount, or up to the amount set forth in RCW 39.04.155 for small works, as adopted or amended, whichever is less.

D. The city council finance committee is authorized to approve change orders on short notice that are in excess of the amounts authorized in SVMC 3.35.010(C), in circumstances where such a change order is necessary to avoid a substantial risk of harm to the City. In such an event, the city manager shall provide appropriate information to the city council at its next regular meeting setting forth the factual basis for the action.

E. Change orders shall only be approved if they are for additional or alternative services, work or procurements that are within the scope of purpose and intent of the original bid and contract. (Ord. 19-021 § 2 (Exh. A), 2019; Ord. 17-012 § 1, 2017; Ord. 15-022 § 4, 2015).

3.35.020 Rules and policy.

The city manager may develop rules, policies, and procedures to implement Chapters 3.35 through 3.49 SVMC. (Ord. 19-021 § 2 (Exh. A), 2019; Ord. 17-012 § 1, 2017; Ord. 15-022 § 4, 2015).

3.35.030 Administration.

Under the direction of the city manager, the contracting and purchasing procedures shall be administered pursuant to Chapters 3.35 through 3.49 SVMC and other applicable laws, including all applicable state and federal laws. The city manager shall have the responsibility to:

A. Administer and maintain the contracting process and the purchasing system according to the rules and regulations established or authorized by applicable ordinances and statutes.

B. Coordinate the negotiation, purchase, and disposition of all City supplies, materials, and equipment in consultation with City staff.

C. Seek to obtain a competitive price on all City contracts or purchases by bidding, submitting requests for proposals and qualifications, using a small works roster, consultant roster, and vendor list, or negotiating on such contracts or purchases as appropriate, unless otherwise specifically excluded in Chapters 3.35 through 3.49 SVMC.

D. Prescribe and maintain such administrative policies, procedures, and forms as are reasonably necessary to implement Chapters 3.35 through 3.49 SVMC.

E. Coordinate the inspection of all City-purchased equipment to ensure conformance with specifications.

F. Ensure that the small works roster(s), consultant roster(s), vendors list(s), and other records needed for the efficient operation of the purchasing system are maintained.

G. Maintain the property inventory and fixed asset systems of the City.

H. Determine the need for any routine preventive maintenance contracts on various pieces of equipment, and establish and maintain said maintenance contracts.

I. Periodically prepare a comprehensive list of surplus, worn out, or obsolete City-owned equipment. Items which cannot be used or reassigned to another department shall be recommended for disposal pursuant to SVMC 3.49.020. (Ord. 19-021 § 2 (Exh. A), 2019; Ord. 17-012 § 1, 2017; Ord. 15-022 § 4, 2015).

3.35.040 Prohibited practices.

The following types of purchasing and bidding practices are hereby prohibited and may result in disqualification of the bid, proposal, or procurement quote:

A. Collusion among Bidders. Any agreement or collusion among bidders, prospective bidders, vendors or prospective vendors to either buy or sell or fix prices in restraint of free competition. Such bidders or vendors may be subject to exclusion from future bidding or procurement processes with the City when determined by the city manager to be in the best interests of the City.

B. Disclosure of Formal Bid Contents. Any disclosure of information contained in the sealed bid prior to bid opening, unless otherwise required pursuant to law. Notwithstanding anything herein to the contrary, all bids submitted by bidders taking advantage of any information revealed contrary to SVMC 3.35.040 shall become null and void.

C. Gratuities. In accordance with high standards of behavior, the acceptance of any gift or gratuity in the form of cash, merchandise, or any other thing of value by an official or employee of the City from any bidder, vendor or contractor, or prospective bidder, vendor, or contractor.

D. Employee-Owned Businesses. Obtaining City goods or services from businesses in which City officials, employees, or their immediate family members have a majority ownership interest or otherwise exceed the “interests” standards pursuant to Chapter 42.23 RCW.

E. Sale of Materials and Supplies. The City acquiring goods or services for any private party, or selling its materials or supplies to City officials, employees or the public except when such materials have been declared surplus and disposed of pursuant to Chapter 3.49 SVMC. (Ord. 19-021 § 2 (Exh. A), 2019; Ord. 17-012 § 1, 2017; Ord. 15-022 § 4, 2015).