Chapter 4.80
PURCHASING, BIDDING AND CONTRACTING FOR GOODS AND SERVICES

Sections:

4.80.010    Bidding requirement generally.

4.80.020    Notice of bids.

4.80.030    Bid opening – Council action.

4.80.040    Obligations of vendor in submitting bids.

4.80.050    Vendor – Qualifications.

4.80.060    Disqualification.

4.80.070    Performance and payment bond.

4.80.080    Maintenance bond.

4.80.090    Assurances required for nonpublic work contract.

4.80.100    Purchase orders required – Liabilities in excess of appropriation.

4.80.110    Execution of contracts.

4.80.115    Use of credit cards.

4.80.120    Aggregating orders.

4.80.010 Bidding requirement generally.

A. Except as may otherwise be required by law, any purchase of supplies, material, or equipment, except for public work or improvement, shall be made pursuant to written city policy and procedures.

B. Any “public work” or improvement (including supplies, material and equipment in connection therewith), as defined herein, shall be made upon call for bids when required by applicable state law.

C. As an alternative to subsection (B) of this section, for public works or improvements of up to the maximum amount allowed pursuant to state law or less there may be established one or more “small works rosters” to be used in lieu of formal sealed bidding, as follows:

1. There may be created small works rosters for one or more categories of work and for one or more dollar thresholds.

2. Each roster shall consist of all responsible contractors who have requested to be on the list and who are properly licensed or registered to perform such work.

3. At least once a year, if practicable, the city shall publish in a newspaper of general circulation within the jurisdiction of notice of the existence of the roster(s) and solicit the names of contractors for such roster(s).

4. There shall be established a procedure for securing written or faxed price quotes from contractors on a roster, and the contract shall be awarded to the lowest responsible bidder.

5. Invitations for price quotes shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. Detailed plans and specifications do not need to be included; however, this does not eliminate other requirements for architectural or engineering approvals as to quality and compliance with building codes.

6. Whenever possible at least five contractors shall be invited to submit bids. If there are not five contractors available or remaining on the roster, quotes may be requested from fewer than five or from contractors from which quotes have been previously obtained.

7. A contract awarded pursuant to the small works process need not be advertised; however, immediately after the award is made, the quotations shall be open to public inspection and available by telephone inquiry.

D. The term “public work” as used herein, means as defined in RCW 39.04.010, as currently enacted or hereinafter amended.

E. The following shall also be exempt from the formal bid process:

1. Consultant service, professional service and personal service contracts, provided solicitation of proposals may be undertaken when necessary to ensure competitive prices or when required by applicable state law or city policy;

2. Where patents require the procurement of a particular brand to ensure compatibility with existing equipment and the prices for such item are fixed;

3. Where, after due inquiry, the purchasing superintendent determines that a sole source of supply exists, thereby rendering the bidding process futile, provided the purchasing superintendent shall append to the requisition a statement setting forth the facts which verify the conclusion that a single source of supply exists;

4. Where formal bids have been solicited and no response is received;

5. Contracts awarded due to an emergency as defined by RCW 39.04.280, as may be amended; provided, however, that the city council finds in a written resolution that an emergency existed and that council passes the resolution no later than two weeks following the award of the emergency contract;

6. Purchases of items for which the State Department of Purchasing or other governmental entity has established a price by the solicitation of bids and which have been authorized for use by municipalities. [Ord. 2002-06-043; Ord. 1998-04-016; Ord. 10671 § 1, 1995; Ord. 9799, 1988; Ord. 8884 § 4, 1980].

4.80.020 Notice of bids.

Where formal bidding is required, the purchasing manager shall advertise a notice for bids at least once no less than two weeks in advance of the bid opening in the city’s official newspaper and such other publications as may be appropriate. Such advertisement shall state the general nature and plan of the work, or kind of property to be purchased, where the plans and specifications may be seen or obtained, and a specified hour and date when such bids shall be opened. The notice as well as the bid documents shall state that the city reserves the right to reject all bids, and to waive any irregularities or informalities that do not materially affect the substance of the bid itself. [Ord. 8884 § 5, 1980].

4.80.030 Bid opening – Council action.

At the time and place indicated, the purchasing manager or his designee shall open the bids, and as soon as is practicable, shall submit a department synopsis of the bids and a staff recommendation to the mayor. The mayor will then forward his recommendation to the council. The council may accept the mayor’s recommendation, determine independently which constitutes the lowest and best bid, or reject any or all of the bids. [Ord. 9064 § 1, 1982; Ord. 8884 § 6, 1980].

4.80.040 Obligations of vendor in submitting bids.

In the case of public works contracts, other than those entered into pursuant to the small works roster process, bids filed shall be accompanied with a certified check, cash, cashier’s check or bid bond payable to the city in an amount of five percent of the estimated cost of the work. If a bid is accepted, then all checks or bid bonds shall be returned to the bidders, except that of the accepted bidder, which shall be retained until a contract is entered into. If the bidder fails to enter into such contract in accordance with his bid within 20 days from the date upon which he or she is notified that he or she is the successful bidder, the check, cash or bond shall be forfeited to the city, to the credit of the fund from which the contract was to be paid. [Ord. 1998-04-016; Ord. 8884 § 7(A), 1980].

4.80.050 Vendor – Qualifications.

Any person bidding on contracts for provision of work, services, or materials, supplies or equipment to the city may be required to submit to the city, upon demand and prior to the award of contract, satisfactory evidence that he or she has sufficient means, plans, equipment, and experience to undertake and successfully complete the contract. [Ord. 1998-04-016; Ord. 8884 § 7(B), 1980].

4.80.060 Disqualification.

Failure to submit the required information, or should it in the judgment of the director of public works reveal the prospective bidder is not sufficiently equipped or qualified to enter into or perform the contract, will disqualify the bidder or bidders. The director of public works will forthwith notify the bidder of that fact prior to the award of contract. [Ord. 88884 § 7(C), 1980].

4.80.070 Performance and payment bond.

When required by law or funding regulation for a public works contract, the contractor will be required to deliver to the city a surety bond or bonds for contract performance and payment of laborers and materialmen in the amount of 100 percent of the contract price, which shall comply with all requirements for such bonds enumerated in Chapter 39.08 RCW. [Ord. 9064 § 2, 1982; Ord. 8884 § 7(D), 1980].

4.80.080 Maintenance bond.

The successful bidder, prior to final acceptance of the work, may be required to submit a maintenance bond in an amount determined by the appropriate department head, but in no case less than 25 percent of the total contract price. The bond is to be issued by a person or corporation authorized to do business as a surety in the state of Washington, and shall be acceptable to the mayor and city attorney in substance and form.

Maintenance bonds:

A. May be required where state or other applicable regulations make a one-year maintenance bond mandatory or optional; and

B. In the case of projects involving landscaping, two-year maintenance bonds may be required.

C. Where a maintenance bond is used, the requirement will be stated in the contract documents. [Ord. 9064 § 3, 1982; Ord. 8884 § 7(E), 1980].

4.80.090 Assurances required for nonpublic work contract.

Where formal bidding is required, but the work does not qualify as a public work, bidders may be required to submit the five percent deposit described in BMC 4.80.040 if deemed to be in the city’s interest by the purchasing manager. All such requirements shall be specified in the “Invitation to bid” documents. [Ord. 8884 § 8, 1980].

4.80.100 Purchase orders required – Liabilities in excess of appropriation.

A. City employees or agents are prohibited from ordering goods or services in behalf of the city until a purchase order has been issued, unless specifically exempted by city policy.

B. Liabilities incurred by any department, in excess of any budget appropriations for the current year, shall not be a liability of the city. The city shall approve no claim, nor issue a check for an expenditure in excess of budget appropriations except upon an order of a court of competent jurisdiction, specific authorization therefor by the city council, or except for emergencies when such emergency has been provided for in the manner provided by law. [Ord. 2004-08-058; Ord. 1998-04-016; Ord. 9064 § 4, 1982; Ord. 8884 § 9, 1980].

4.80.110 Execution of contracts.

A. A formal written contract, signed by the mayor and attested by the finance director, shall be required as follows:

1. For public works or improvements where the cost thereof exceeds $5,000;

2. For contracts for services in excess of $10,000.

B. In cases of purchases of supplies, material or equipment, a purchase order shall be sufficient to document the transaction.

C. In all other cases, a document (on a form acceptable to the city) representing the terms of agreement between the contractor or vendor and the city shall be executed by the contractor or vendor and the head of the department for whom the work is being performed. The mayor and finance director are hereby authorized to delegate to such department head authority to sign such document. Such document shall be accompanied by an insurance certificate naming the city as an additional insured. [Ord. 2009-09-058; Ord. 2004-07-048; Ord. 1998-04-016; Ord. 9878, 1988; Ord. 8884 § 10, 1980].

4.80.115 Use of credit cards.

City departments are authorized to use credit cards for official purchases and acquisitions on condition that the finance department has promulgated necessary rules and policies governing their use, including but not limited to:

A. Policies and procedures for distribution, authorization, and credit limits of credit cards; and

B. A system for control of credit card funds and payment of amounts due.

The finance department shall establish and maintain all credit arrangements with appropriate vendors or credit card companies. There shall be no cash advances on credit cards. [Ord. 1998-04-015].

4.80.120 Aggregating orders.

The purchasing manager is directed to aggregate orders of similar or identical items where practical and advertise the same for bid if required. The purchasing manager is further prohibited from fragmenting orders of items which should be anticipated to be needed over the course of the budget year to circumvent the need for and intent of the public bidding process. [Ord. 8884 § 11, 1980].