Chapter 3.42
PUBLIC WORK CONTRACTS
Sections:
3.42.020 Public work equal to or less than $25,000.
3.42.030 Exception to selection processes.
3.42.040 Performance and payment bonds.
3.42.010 Public work equal to or less than $75,000 for one trade and $116,155 for two or more trades and greater than $25,000.
Except as required by federal law or Chapter 3.36 SVMC, the following requirements apply:
When entering into a contract for public work equal to or less than $75,000 if only one trade or craft is involved, or $116,155 if two or more trades are involved, or such other maximum amounts as set forth in RCW 35.23.352 as adopted or may be amended, but greater than $25,000, the responsible department shall obtain three or more proposals for the public work required, select the lowest responsible proposal, and maintain a record of the process followed. Alternatively, the department may utilize the small works roster and process pursuant to Chapter 3.41 SVMC. If less than three proposals are received, City staff shall not be required to resubmit for additional proposals, but shall select from the proposals submitted. If no proposals are received, City staff shall not be required to resubmit for additional proposals, but may negotiate with any available contractor. (Ord. 23-013 § 2, 2023; Ord. 19-021 § 5 (Exh. A), 2019; Ord. 17-012 § 4, 2017; Ord. 15-022 § 7, 2015).
3.42.020 Public work equal to or less than $25,000.
Except as required by federal law or Chapter 3.36 SVMC, when entering into a contract for public work in an amount equal to or less than $25,000, the responsible department is encouraged, but is not required, to use a competitive bidding process, including obtaining three proposals pursuant to SVMC 3.42.010, or using the small works roster and process pursuant to Chapter 3.41 SVMC. If a competitive process is not utilized, the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. (Ord. 23-013 § 2, 2023; Ord. 19-021 § 5 (Exh. A), 2019; Ord. 17-012 § 4, 2017; Ord. 15-022 § 7, 2015).
3.42.030 Exception to selection processes.
If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.42.010 and 3.42.020, the selection procedures set forth in Chapter 3.42 SVMC may, with prior approval of the city manager, be waived by the department director, and the contract may be awarded without following the procedures set forth in SVMC 3.42.010 and 3.42.020. The circumstances giving rise to such waiver shall be documented in writing. (Ord. 19-021 § 5 (Exh. A), 2019; Ord. 17-012 § 4, 2017; Ord. 15-022 § 7, 2015).
3.42.040 Performance and payment bonds.
Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure complete, proper and full performance of the contract and full payment of all laborers, mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects, pursuant to and in the manner set forth in RCW 39.08.010 through 39.08.030, as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions.
Pursuant to RCW 39.08.010, for public works and works by contract on which prevailing wage is required to be paid, at the contractor’s option, the City may, in lieu of requiring payment and performance bonds, retain a percentage of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed pursuant to Chapter 60.28 RCW. This option is only available for contracts at the amount set forth in RCW 39.08.010 as adopted or hereafter amended. The amount retained by the City shall be the amount as set forth in RCW 39.08.010. Retainage in lieu of payment and performance bonds may only be used by the City for contracts when the requirement of bonds substantially increases the cost of the contract. (Ord. 19-021 § 5 (Exh. A), 2019; Ord. 17-012 § 4, 2017; Ord. 15-022 § 7, 2015).