HomeMy WebLinkAbout2715 Purchase of Goods, Services, Equipment and SuppliesCITY OF PORT TOWNSEND
ORDINANCE NO. ~,7 '7 / 5~
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, ESTABLISHING A COMPREHENSIVE POLICY FOR THE
PURCHASE OF GOODS, SERVICES, EQUIPMENT, SUPPLIES, AND PROPERTY
FOR THE CITY OF PORT TOWNSEND; ADOPTING A NEW CHAPTER 3.46
PTMC, "PURCHASE OF GOODS, SERVICES, EQUIPMENT AND SUPPLIES;"
REPEALING RESOLUTION 95-93; AND ESTABLISHING AN EFFECTIVE DATE
SECTION 1. FINDINGS
1. The City of Port Townsend owns public property, acquired for various public needs
and purposes. The City Council, acting in a legislative, proprietary capacity, has the discretion and
authority to determine-the best management practices for the City's public property. In making these
decisions, the Council acts as stewards of public property, and considers the long-term needs and
interests of the public.
2. This Ordinance adopts a new Chapter 3.46 PTMC, establishing legislative policies for
the purchase of goods, services, equipment and services. The Council finds that in the management
of public funds through the purchase of goods, services, equipment and supplies, the City has a
fimdamental obligation to use best management practices and to ensure full compliance with
Washington law.
3. This Ordinance is intended to set legislative parameters for the Administration, while
delegating tb the City Manager the administrative tasks of implementing policy direction established
herein. It is therefore the intent of the City Council that in reviewing and approving all purchases of
goods, services, equipment and supplies, the Council will require a demonstration of compliance
with the legislative policy set forth in Chapter 3.46 PTMC, and leave the administrative,
management practices in implementing the Council's policies to the professional judgment of the
City Manager, in accordance with Chapter 35A. 13 RCW.
NOW, THEREFORE, BASED UPON THE FINDINGS set forth in Section 1, the City
Council of the City of Port Townsend ordains as follows:
SECTION 2. A new Chapter 3.46 PTMC, "Purchase of Goods, Services, Equipment and
Supplies," is hereby ADOPTED and shall be codified by the Code Reviser to read as follows:
Chapter 3.46
PURCHASE OF GOODS, SERVICES, EQUIPMENT AND SUPPLIES
Sections:
3.46.010
3.46.020
3.46.030
3.46.040
3.46.045
3.46.050
3.46.060
3.46.070
3.46.080
3.46.090
3.46.100
3.46.110
Purpose.
Definitions.
Administration.
Local Vendors.
Taxes.
Formal Bidding.
Architectural and Engineering Services.
Electronic Data Processing and Telecommunications Systems.
Competitive Bidding Procedures.
Exemptions to Competitive Bidding Requirements.
Prohibited Practices.
Authorization.
3.46.010 Purpose.
By adopting this Chapter 3.46 PTMC, the City Council intends to ensure that the City conduct all
purchasing and public works contracting activities in full compliance with Washington law and
locally adopted procedures. The intent of this Chapter is to provide maximum assurances to the
public and to all contractors, consultants and vendors, that Port Townsend's purchasing and
contracting practices provide maximum fairness and value in the expenditure of public funds.
3.46.020 Definitions. Unless the context requires otherwise, the terms as used in this
chapter 3.46 PTMC shall have the following meaning:
"Adequate Appropriation Balance:" Sufficient fund balance existing in the appropriation
item against which the purchase order is to be charged.
"Bid:" An offer, submitted by a bidder to furnish supplies materials, 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.
"Bidding:" Procedure used to solicit quotations on price and delivery from various
prospective suppliers of supplies, materials, equipment, and other City property.
"Capital Equipment." Any equipment of the City having an initial value of one thousand
dollars ($1000) or more and an estimated useful life of three (3) or more years.
"City Manager:" The Port Townsend City Manager or his/her duly appointed designee.
The City Manager is authorized to delegate any functions and responsibilities set forth in this
chapter 3.46 to administrative staff.
"Contractual Services:" Professional and nonprofessional service contracts including but
riot limited to engineering, animal control, janitorial and other contracts entered into for the
accomplishments of a particular project or limited period of time.
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"Emergency:" For the purpose of enabling the City to suspend compliance with public
bidding and purchasing policies and requirements, an emergency is an event or set of
circumstances which demands immediate action to preserve public health, protect life, protect
public property, or to provide relief to the community overtaken by such occurrences.
"Life Cycle Cost:" The total cost of an item to the City over its estimated useful life,
including cost of selection, acquisition, operation, maintenance, and where applicable, disposal,
as far as these costs can reasonably be determined, minus the salvage value at the end of its
estimated useful life.
"Local Bidder:" A firm or individual who regularly maintains a place of business and
transacts business in, or maintains an inventory of merchandise for sale in, and is licensed by the
City of Port Townsend.
"Public Property:" Any item of real or personal property owned by the City.
"Public Work:" The term "public work" shall have'the meaning set forth in RCW
39.04.010, as now adopted and hereafter amended.
"Purchase Order:" Official document used in authorizing the encumbrance of City funds
toward the purchase of supplies, materials, equipment and other property.
"Purchasing Agent:" The City Manager or City employee designated by the City Manager
to serve as a Purchasing Agent. For ~routine departmental purchases of supplies, in accordance
with the City Manager's administrative policy, each department director may designate one or
more departmental purchasing agent(s).
"Responsible Bidder:" A bidder who has proven 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 on which he/she bids. A "responsible
bidder" has not violated or attempted to violate any provisions of this chapter 3.46 PTMC.
"Responsive Bidder:" A bidder who has complied with all requirements contained in the
invitation to bid, including the bid packet and specifications, and who has submitted all required
documentation, information and bid bond by the deadline for acceptance of bids.
"Requisition:" 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.
3.46.030 Administration. Under direction of the City Manager, the purchasing system
provided herein shall be administered in accordance with applicable state statutes, this chapter,
and by other applicable laws. The City Manager or designee(s) shall have the responsibility and
accountability to purchase and dispose of City property as follows:
A. Administer and maintain the purchasing system according to the rules and regulations
established or authorized by this chapter or other applicable ordinances and statutes.
B. Coordinate the negotiation, purchase and disposition of all City supplies, materials and
equipment in consultation with Department Heads, division managers and other responsible City
agents, and in conformance with chapter 3.44 PTMC (Disposition of Surplus Property).
C. Seek to obtain as full and open competition as possible either by bidding or negotiation
on all City purchases.
-3- Ord. No.
D. Keep departments informed of current developments in the field of purchasing, i.e.,
prices, market conditions, new products, etc.
E. Prescribe and maintain such administrative policies, procedures and forms as are
reasonably necessary to the operation of Port Townsend's purchasing system.
F. Coordinate the inspection of all City purchased equipment to assure conformance with
specifications.
G. See that bidders' lists, vendors' catalog files and other records needed for the efficient
operation of the purchasing system are maintained.
H. Establish and maintain the property inventory and fixed asset systems of the City.
I. Determine with the appropriate Department Head the need for any routine preventive
maintenance contracts on equipment items. Establish and maintain needed maintenance
contracts.
J. Periodically prepare a comprehensive list of surplus, worn out or obsolete City-owned
equipment and dispose of such property in accordance with chapter 3.44 PTMC.
K. Promulgate such rules and policies as needed to implement this chapter.
3.46.040 Local Vendors. Bids and price quotations shall be solicited from Port Townsend
vendors whenever possible. However, pursuant to Washington law, the City may not favor local
businesses in the award of contracts. Upon the City Manager's adoption of an appropriate
administrative procedure, in accordance with RCW 39.30.040, local sales tax and other locally
generated tax revenues may be considered in determining the lowest bid for the purchase of
supplies, materials and equipment.
3.46.045 Taxes. For purposes of calculating limits in this chapter, sales tax is included in
the amount to determine the sum.
3.46.050 Formal Bidding. Formal bidding shall be used whenever a public works
projects exceeds the sum of thirty thousand dollars ($30,000) if more than one craft or trade is
involved with the public works, or twenty thousand dollars ($20,000) if a single craft or trade is
involved with the public works or if the public works project is street signalization or street
lighting; provided, however, formal bidding shall not be required for small works roster projects
as provided for in subsection C. Bid packets shall be prepared for all formal bids, and shall
include an Invitation to Bid notice, Instructions to Bidders, General Conditions, Special Bid
Conditions (if any), Terms and Conditions, and a bid proposal form indicating the type of
response desired from a bidder.
A. For all public works which require formal public bidding, the City Manager shall follow
the requirements set forth in this chapter 3.46 PTMC.
B. Purchases of Material or Equipment Between $7,500 and $15,000. Material or
equipment, the cost of which is between seven thousand five hundred dollars ($7,500) and fifteen
thousand dollars ($15,000), may be procured through telephone and/or written quotations or bids
on forms prescribed by the City Manager. Where possible, three quotations shall be sufficient to
determine a competitive price for any such purchase except for items which, for a practical
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matter, can only be obtained from a single source. Said purchases shall be awarded to the lowest
responsive, responsible bidder.
C. Small Works Roster.
1. The City Manager may establish a Small Works Roster, in accordance with the
requirements set forth in RCW 35.22.620 and adopted administrative policies and procedures, for
contracts within the dollar amounts set forth in RCW 39.04.155 and as hereafter amended.
2. At least once each year, the City Manager shall publish in the official newspaper a notice
of existence of the Small Works Roster, soliciting the names of contractors for inclusion in the
roster. The published notice shall identify all small works projects approved in the adopted
Capital Improvement Program which are likely to be scheduled for bid awards off the Small
Works Roster during the next twelve-month period. The application and opportunity of
contractors to be added to the Small Works Roster shall remain open continuously without regard
to the date the notice is published.
3. The City Manager shall adopt administrative procedures for securing telephone or written
quotations from the contractors on the small works roster, to assure that a competitive price is
established and to award contracts to the lowest responsive, responsible bidder. The
administrative procedures shall require that wherever possible, at least five contractors shall be
invited to submit bids, and that once a contractor has been afforded an opportunity to submit a
proposal, that contractor shall not be offered another opportunity until all other appropriate
contractors have been afforded an opportunity to submit a proposal on a contract.
3.46.060 Architectural and Engineering Services; Other Professional Services.
A. Architectural and Engineering Services. Contracts for architectural and engineering
services require conformance with RCW 39.80.010-060. The statute requires advance
publication of the requirement for professional services (RCW 39.80.030); evaluation of
qualifications and performance data of firms (RCW 39.80.040); and negotiations with firms in
accordance with adjudged qualifications (RCW 39.80.050).
B. Other ProfeSsional Services. The City Manager shall take appropriate steps to ensure that
the best possible professional services are procured at the most competitive price for the
particular service and that such services are procured pursuant to the City Manager's
administrative procedures. Former city employees are prohibited from rendering professional
services on behalf of the City for a period of five years after terminating employment with the
City, unless such services are approved by the City Council.
C. Selection of contractors off the small works roster. The selection of contractors off the
small works roster shall be handled by City employees only. Non-employee consultants or
contractors may select small works contractors only upon the prior consent of the City Council,
approved by resolution.
D. Legal services exempt. Legal services, contracts or retainer agreements for services
rendered by outside legal counsel are exempt from this section 3.46.060. All contracts or retainer
agreements for legal services shall be approved by the City Manager, after consultation with the
City Attorney.
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3.46.070 Electronic Data Processing and Telecommunications Systems. Due to the
unique aspects of electronic data processing and telecommunication systems and the importance
of these systems for the effective administration of local government, a unique acquisition system
for these systems is appropriate. All purchases of overall electronic data processing and
telecommunication systems, including equipment, software, and services, shall be made pursuant
to thc competitive negotiation process, rather than through competitive bidding, as authorized
and described in RCW 39.04.270, as now adopted and hereafter amended. For thc purchase of
individual components (versus overall systems), standard purchasing policies for equipment,
supplies and services shall apply.
3.46.080 Competitive Bidding Procedures. The City Manager shall call for competitive
bids where required.
A. Publication of Notice.
1. As provided in RCW 35.23.352(1), public works contracts shall be bid upon posting notice
calling for sealed bids upon the work.
2. Such notice thereof shall be posted in a public place by the City Clerk and by publication in
the official newspaper of the City at least thirteen (13) days before the date fixed for opening the
bids. The notice shall generally state the nature of the work to be done, that plans and
specifications therefore shall then be on file in the City, and that bids be sealed and filed with the
City within the time specified therein.
B. Rejection of Bids, The City Manager may reject without cause all bids and may
re-advertise for bids pursuant to the procedureS herein described. If no responsive bids are
received, the City Manager, with approval of the City Council, may negotiate the purchase with a
vendor at the lowest cost possible to the City.
C. Performance Bonds. A performance bond shall be required on all public works
construction projects in accordance with RCW 39.08.010 and hereafter amended.
4. Bid Bonds.
1. The City Manager shall require as a condition of bidding a bid bond or a cashier's check in
lieu thereof in the amount of 5 percent (5%) of the amount bid. Such bid bond shall be required
on all formally bid public works construction projects.
2. When the contract is let, all bid bonds shall be returned to the bidders except that of the
successful bidder which shall be retained until a contract is entered into and a bond to perform
the work furnished as provided above. If the successful bidder fails to enter into the contract in
accordance with the bid and furnish such bond with ten days from the date at which the bidder is
notified of bid award, the bid bond shall be forfeited.
E. Award of Bid. Except as otherwise provided herein, the City shall accept the bid of the
lowest responsive, responsible bidder.
F. Award to Other Than Low bidder. When the bid award is not given to the lowest bidder, a
full and complete statement of the reasons for placing the order elsewhere shall be prepared by
the City Manager and filed with the other papers relating to the transaction.
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3.46.090 Exemptions to Competitive Bidding Requirements.
A. Sole source purchases and special market conditions. Purchases which by their nature are
not adapted to competitive bidding, such as purchases of repairs and purchases of items which
may, as a practical matter, 0nly be purchased from a single source, shall not be subject to the
competitive bidding requirements of this chapter. Purchases for materials, supplies, equipment or
repairs which are made under special market conditions, e.g. where the item is offered to the City
at a highly favorable price and will be sold before the City has the time to comply with formal
bidding requirements, or where the City must act quickly or through a specific channel to take
advantage of special circumstances to achieve a lower cost, shall not be subject to the
competitive bidding requirements of this chapter. Where the City makes sole source purchases
or special market condition purchases without formal bidding compliance, the City Council shall
pass a resolution, or City Manager shall prepare a statement in cases within the Manager's
authority, reciting the situation and setting forth the reasons for invoking this section.
B. Auctions, Closeout and Bankruptcy Sales. If an authorized purchasing coordinator
determines that supplies, material, or equipment can be purchased by any public auction, closeout
sale, bankruptcy sale or other similar sale, and makes a finding that a purchase at any such
auction or sale will be made at a cost below the market cost, the City Manager may authorize
said purchases.
C. Exchanges. The City may by agreement exchange supplies, materials or equipment with
other public agencies.
D. Interlocal Agreements in Letting of Contracts for Commodities or Services. In
accordance with RCW 47.24.050, RCW 35.77.020, RCW 36.75.200, and RCW 39.34.080, the
City Manager may enter into joint purchase agreements with any and all other public agencies
within the state for the purchase of any commodity or service as permitted by state law, where it
is determined by the Manager to be in the best interest of the City, without individual approval of
the City Council, and so long as the contract is consistent with the approved annual budget. Prior
to commencing a bid process for significant purchases, the City Manager shall make reasonable
efforts to find opportunities for joint purchases with other public agencies in accordance with this
section.
E. Emergency Purchases. Under emergency conditions as provided herein, the public
bidding requirements are suspended. Publication notices may be waived for emergency
purchases and other contracts as provided by law. However, where the conditions allow
sufficient time, authorized employees shall demonstrate a reasonable effort to contact two or
more vendors for price quotations, and/or to follow bidding procedures to the best extent possible
under the circumstances.
1. Emergencies occurring after regular business hours. In the event that an emergency should
arise after office hours, which emergency requires immediate action on the part of the City
department involved for the protection of the best interests of the City, or should such a situation
arise on a Saturday, Sunday or holiday and where it is not possible or convenient to reach the
City Manager, any necessary purchase shall be made by the City department for which the
purchase is necessary. The purchase shall be reported to the City Manager at the first of the next
business day.
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2. Other emergencies. In the event of a natural disaster or man-made disaster or emergency, and
where it is necessary to the health, safety or welfare of the community that immediate action and
execution of a public work be undertaken, public bidding requirements shall be suspended during
the pendency of the emergency condition.
3. City Council action. Where public works projects are undertaken in emergency conditions,
and without public bidding compliance, the City Manager shall report the condition to the City
Council as soon as practicable. As soon as practicable, the' City Council shall pass a resolution
declaring the emergency, reciting the facts constituting the emergency, and waiving the public
bidding requirements.
F. Petty Cash.
1. Petty cash purchase shall not exceed one hundred dollars ($100) per project, except in
emergencies. All requests for petty cash funds or reimbursement of petty expenditures shall be
reconciled by a receipt or paid invoice along with a completed petty cash form.
2. Reimbursements and reconciliations of petty cash funds shall be made within 30 days of the
transaction. No personal checks shall be cashed out of the Petty Cash Fund.
3. Purchasing Cards. Purchasing cards may be used for purchases; provided, however
purchasing cards shall not be used until the City Manager adopts policies and procedures
governing their use, in accordance with Washington law.
G. Real Property. Acquisition of real property is exempt from the competitive bidding
requirements of this policy. Upon approval of the City Council, the City Manager may proceed
to acquire real property through negotiation. The City Council shall authorize all real property
purchases. Negotiations to purchase real property shall be based upon an independent appraisal
of the property. The City shall not pay more than fair market value for any real property without
prior Council approval. All property acquisition negotiations shall be conducted in accordance
with the City's property acquisition policies and procedures and shall comply with Chapter 8.26
RCW (the State Uniform Relocation and Real Property Acquisition Act, as amended).
3.46.100 Prohibited Practices.
A. Collusion Among Bidders. Any agreement or collusion among bidders or prospective
bidders to either buy or sell, in restraint of freedom of competition, be it agreement to bid a fixed
price, or otherwise, shall render the bids of such bidders void. Such bidders may be subject to
possible exclusion from future bidding with the City when determined by the City Manager to be
in the best interest of the City.
B. Disclosure of Formal Bid Contents. Any disclosure in advance of the opening bids, of
any information contained in the sealed or formal bid, made or permitted by a City Officer or
employee may render each bid void either by the City or the parties submitting bids. Appropriate
disciplinary action shall be taken against both the persons revealing the information and the
persons using the information. Notwithstanding anything herein to the contrary, all bids
submitted by bidders taking advantage of any information revealed contrary to this section shall
at once become null and void. The City Manager shall adopt policies and procedures to ensure
that all bids remain secure and confidential prior to bid opening.
C. Gratuities. With the exception of normal business and social courtesies, or donations
publicly given and accepted, the acceptance of any gift or gratuity in the form of cash,
merchandise or any other thing of significant value, as determined by the Attorney General's
Revised 6/19/00
opinion, by an official or employee of the City from any vendor or contractor, or prospective
vendor or contractor, shall be prOhibited.
D. Employee or City Official-Owned Businesses. In accordance with Chapter 42.23 RCW
(the "Code of Ethics for Municipal Officers -- Contract Interests") City goods or services shall
not be obtained from businesses in which City officials, employees or their immediate family
members have a majority ownership interest, or inany situation where the City official or
employee shall be beneficially interested, directly or indirectly, in any contract or transaction.
This prohibition is subject to all exceptions pursuant to RCW 42.23.030.
E. Sale of Materials and Supplies. Except as provided by state law, including RCW
35.21.275, the City shall not use its purchasing power or lend its credit to acquire goods or
services for any private party, nor shall the City sell its materials or supplies to the public except
when said materials have been declared surplus and disposed of as provided in chapter 3.44
PTMC.
3.46.110 Authorization
A. The City Council authorizes the City Manager, or Manager's designee, to enter into and
execute on behalf of the City the following contracts without individual approval of each
contract by the City Council, so long as the contract is consistent with the approved annual
budget for the City, and the City's liability under the contract does not exdeed the available
fund balance:
1. Contracts for purchase of goods, supplies, materials, postage or equipment involving a
cost or fee of less than Thirty Thousand Dollars ($30,000). However, these types of
contracts which specifically implement the annual budget may exceed Thirty Thousand
Dollars ($30,000) provided that such contracts result directly from the aggregation of
approved budgetary programs and services for the current year.
2. Professional services contracts, including contracts for architectural, engineering, legal,
and consulting services involving a cost or fee of less than Ten Thousand Dollars
($10,000).
3. Maintenance contracts involving a cost or fee of less than Ten Thousand Dollars
($10,000) per year.
4. Public Works projects involving a cost or fee of less than Thirty-Five Thousand
Dollars ($35,000), involving multiple trades, and Twenty Thousand Dollars ($20,000)
involving a single trade.
5. The City Manager shall be authorized to approve change orders in a cumulative total
amount not to exceed 10% of the contract award, including tax, provided that the total
cost remains within the budget authorization.
6. Lease Agreements for materials, supplies, and equipment where the expenditure or fee
does not exceed Ten Thousand Dollars ($10,000) per year.
7. Emergency Contracts.
Revised 6/19/00
B. All interlocal agreements shall be presented to the City Council for prior approval
except for interlocal agreements that create no direct liability or expense to the City, for
example, interlocal purchasing agreements.
SECTION 3. Repeal of Previous Legislative Policy. Effective upon the effective date
of this Ordinance, Resolution 95-93 and all other previously adopted policies and procedures
which are inconsistent with this Ordinance are hereby repealed to the extent of such
inconsistency.
SECTION 4. City Manager to Adopt Policies and Procedures. Prior to June 1, 2000,
the City Manager shall adopt policies and procedures to implement the legislative direction set
forth in this Ordinance.
SECTION 5. Severability. If any provision of this Ordinance or its application to any
person or circumstance is held invalid, the remainder of the ordinance, or the application of the
provision to other persons or circumstances is not affected.
SECTION 7. Effective Date. This ordinance shall take effect on ?c,c¥ 3 , 2000.
PASSED AND APPROVED this ! q day of .._T~.c. ., 2000 at a regular meeting of
the City Council of the City of Port Townsend.
, Mayor
Attest:
Approved as to Form:
Pam Kolacy, City Clerk
John Watts, City Attorney
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Revised 6/19/00