Chapter 3.20 PURCHASING POLICY

Chapter 3.20
PURCHASING POLICY

Sections:

3.20.005 Authority and procedures generally.

3.20.010 Purpose—City purchasing agent.

3.20.020 General.

3.20.030 Purchasing guideline.

3.20.040 Materials, supplies and equipment.

3.20.050 Request for proposals (RFP).

3.20.060 Competitive negotiation.

3.20.070 Public works.

3.20.080 Exemptions.

3.20.090 Protests.

3.20.100 Professional and personal services.

3.20.110 Surplus.

3.20.005 Authority and procedures generally.

The exercise of the powers, duties and procedures relative to purchasing by the city shall comply with the statutes of the state as codified in the Revised Code of Washington. (Ord. 426 § 11, 1986)

3.20.010 Purpose—City purchasing agent.

The purpose of this chapter is to fix and coordinate all powers, duties and procedures relative to purchasing by the city in the office of the mayor or designee, who shall function as the city’s purchasing agent. The mayor or designee may create written purchasing policies for the city which shall comply with the laws of the state of Washington. Any and all city purchasing policies shall be approved by the Ocean Shores city council. All city employees shall follow the provisions of the city purchasing policy. (Ord. 864 § 1, 2009; Ord. 805 § 1, 2006: Ord. 37 § 1, 1971)

3.20.020 General.

A. Purpose. The city of Ocean Shores is a noncharter code city; ... “the legislative body of a code city may exercise any of its powers or perform any of its functions including purchasing, and participate in the financing thereof, jointly or in cooperation, as provided for in Chapter 39.34 RCW.” This chapter establishes guidelines and clarifies the policies and procedures for purchasing supplies and materials and contracting for services by the city of Ocean Shores. The procedures set forth in subsequent sections of this chapter are designed to assure the citizens, the city council and city administrative staff that the city of Ocean Shores is receiving maximum value for each tax and utility dollar expended, and to enhance and assure fiscal responsibility in the procurement process.

The manual codified in this chapter is effective immediately upon issuance and receipt by all departments and supersedes all previous purchasing instructions and directives.

B. Mission. The city’s mission for contracting, purchasing, and property disposal includes:

1. Implementing the policies of state laws, local ordinances and administrative procedures, thereby assuring the legality of the purchasing process.

2. Coordinating a uniform procurement system to supply city operations with an uninterrupted flow of materials and services.

3. Buying competitively and wisely to obtain maximum value for the public dollars spent.

4. Promoting good, continuous vendor relations, as well as reliable alternate sources of supply.

5. Keeping inventory losses at a minimum.

In performing these services, the city promotes competition, impartiality, conservation of funds, and fair and open operations done in a manner that ensures accountability, while seeking to realize the maximum value of every dollar.

C. Purchasing Code of Ethics. The public must have confidence in the integrity of its government. The purpose of this code of ethics is to give guidance to all city employees so that they may conduct themselves in a manner that will be compatible with the best interest of the city. Proper purchasing procedure requires that:

1. Actions of city employees be impartial and fair.

2. Government decisions and policies are made in the proper channels of government structure.

3. Public employment is not to be used for personal gain. City employees may not solicit, accept, or agree to accept any gratuity for themselves, their families or others that would or could result in personal gain. Purchasing decisions must be made impartially. The following are examples of items not considered gratuities:

a. Discounts or concessions realistically available to the general population;

b. Items received that do not result in personal gain;

c. Samples to the city used for general city use.

Questions regarding particular problems/events should be referred to the employee’s department head.

D. Controlling Laws. The exercise of the powers, duties and procedures relative to purchasing by the city shall comply with the statutes of the state as codified in the Revised Code of Washington, the Washington Administrative Code and all other local, state and federal laws and regulations (see Section 3.20.005). If there is a conflict between local, state or federal law, contact the purchasing coordinator.

E. Proper Authorization. Only authorized employees may obligate the city in the acquisition of goods and services. Any employees purchasing goods on behalf of the city without proper authorization may be personally liable to the vendor and the city, and subject to disciplinary action.

Purchase orders commit city funds for the acquisition of goods or services. The mayor or designee and the purchasing coordinator are authorized to issue purchase orders on behalf of the city in accordance with this policy.

F. Monitoring and Compliance. The purchasing coordinator and the department heads will enforce this policy. In the event of disagreement, the matter shall be referred to the finance director for further action.

All city officers and employees should be aware of possible personal penalties, termination, and financial liability for intentional and willful violation of competitive bidding laws. RCW 39.30.020 provides:

In addition to any other remedies or penalties contained in any law, municipal charter, ordinance, resolution, or other enactment, any municipal officer by or through whom or under whose supervision, in whole or in part, any contract is made in willful and intentional violation of any law, municipal charter, ordinance, resolution or other enactment requiring competitive bidding upon such contract shall be held liable to a civil penalty of not less than three hundred dollars and may be held liable, jointly and severally, with any other such municipal officer for all consequential damages to the municipal corporation. If, as a result of a criminal action, the violation is found to have been intentional, the municipal officer shall immediately forfeit his office. For purposes of this section “municipal officer” shall mean an “officer” or “municipal officer” as those terms are defined in RCW 42.23.020(2).

(Ord. 864 § 2, 2009; Ord. 805 § 3 (part) (Exh. A § 1), 2006)

3.20.030 Purchasing guideline.

When procuring under a federal award, the city of Ocean Shores will follow the federal awards purchasing procedures or city of Ocean Shores purchasing procedures, whichever is stricter.

Purchases of Goods and Equipment	Purchasing Process	Other Requirements	Contract Authorization
Under $1,500	None	Field order
Between $1,500 and $7,500	No formal requirement; quotes desirable	Purchase order	None required but may be advisable
Between $7,500 and $15,000	Must either: bid; use vendor list; state contract; interlocal	Purchase order	Mayor or designee awards
Over $15,000	Must either: bid; state contract; interlocal	If bid: advertise 13 days; noncollusion affidavit; bidder’s qualifications; bid deadline; purchase order	If purchase was previously authorized by city council under budget adopted pursuant to Section 3.02.010, then mayor or designee may award and execute contract

Public Works Project	Purchasing Process	Other Requirements	Contract Authorization
Projects costing less than $7,500	No formal process required; no contract required	Prevailing wage; may waive performance bond and retainage; insurance; wage compliance; exemption list; city business license	Purchase signature authorization of individual employee
Public works— Limited works $50,000	Limited works roster process required; LWR contract	Prevailing wage; may waive performance bond or retainage (up to $50,000); insurance; exemption list; city business license	Mayor or designee awards and executes contract
Public works—Single craft/ multi craft ($75,000/ $116,155)	Single craft/multi craft contract; advertise if over $25,000	Prevailing wage; performance bond or 10% retainage; insurance; wage compliance; exemption list; city business license	Mayor or designee awards and executes contract up to $50,000 otherwise city council approval
Small works roster (up through $350,000)	Small works roster process; small works contract	Prevailing wage; payment and performance bond; retainage or retainage bond; notice of award; notice to proceed; insurance; wage compliance; exemption list; city business license	Mayor or designee awards and executes contract up to $50,000 otherwise city council approval
Projects over $350,000	Bid (advertise minimum of 13 days in paper of record, bid bond, noncollusion, bidder qualifications, deadline for bid); contract	Prevailing wage; performance bond; retainage or retainage bond; bid bond; notice of award; notice to proceed; insurance; wage compliance; exemption list; city business license	City council awards, authorizes mayor or designee to execute contract

Professional Services Contract (A&E)	Contracting Process	Other Requirements	Authorization
Under $5,000	No formal requirement	Purchase order; insurance
Between $5,000 and $30,000	No formal requirement	Purchase order; professional services agreement; insurance	Mayor or designee to negotiate and execute contract
Over $30,000	Professional services roster or RFP; must advertise for SOQ if federal funding	Purchase order; professional services agreement; insurance	Council authorization for mayor or designee to negotiate and execute contract or otherwise provided by Ocean Shores Municipal Code

Professional Services Contract (non-A&E)	Contracting Process	Other Requirements	Authorization
Under $5,000	No formal requirement	Purchase order; insurance
Between $5,000 and $30,000	No formal requirement	Purchase order; professional services agreement; insurance	Mayor or designee to negotiate and execute contract
Over $30,000	RFP or bid; must advertise for SOQ if federal funding	Purchase order; professional services agreement; insurance	Council authorization for mayor or designee to negotiate and execute contract or as otherwise provided by Ocean Shores Municipal Code

A. Determining the Cost of the Purchase.

1. Annual Cost. The anticipated annual need for a particular good or service should be used to determine the appropriate purchasing process. Projects and purchases shall not be split in order to avoid the required competitive bidding process. Closely related goods will be considered as one purchase on an annual basis when determining which purchasing process applies.

2. Total Cost. The total cost of goods or services, including any applicable taxes, freight, set-up, or die charges, shall be considered when determining which purchasing process applies.

3. Total Quantity. Requirements for the total quantity of an item shall be considered together when determining which purchasing process applies.

Example: If one pump is to be purchased now at an estimated cost including sales tax and delivery of eight thousand nine hundred fifty-nine dollars, but a total of three pumps are expected to be purchased during the year at an aggregate cost of twenty-six thousand eight hundred seventy-seven dollars (eight thousand nine hundred fifty-nine dollars times three), then the procurement of the first pump falls within the over-fifteen-thousand- dollar category, and must be competitively bid.

4. Items Used in Conjunction. If two or more items are designed or intended to be used in conjunction with each other, the total annual accumulated cost of all such items shall be considered together to determine which purchasing process applies, unless these components are not available from a single supplier.

B. Purchase Requisition. The purchase requisition is the first step in the purchasing procedure. The requisition should be submitted to purchasing in a timely fashion to allow adequate time for review, price quotations if necessary, and the preparation of a purchase order. The length of time needed to obtain an item will depend upon the characteristics of the product or service sought, the number of alternative vendors or contractors, availability of the product, etc.

A purchase requisition is an internal instrument that communicates a department’s needs to purchasing. It is not to be conveyed directly to a vendor. Purchase requisitions must be signed by the appropriate department head/designee, to approve purchases for a specific budget. It is the department head’s responsibility to ensure that total annual expenditures do not exceed the authorized budget appropriation.

If you have questions regarding how to complete the purchase requisition, contact the purchasing coordinator.

(Ord. 1049 § 1, 2019; Ord. 864 § 3, 2009; Ord. 805 § 3 (part) (Exh. A § 2), 2006)

3.20.040 Materials, supplies and equipment.

A. Purchases—Less Than One Thousand Five Hundred Dollars.

1. Petty Cash. The purchase of small incidental items may be made using petty cash.

2. Field Orders—Thirty-Five to One Thousand Five Hundred Dollars. Field orders allow authorized users to purchase items under one thousand five hundred dollars without going through the purchase requisition/purchase order process. Field order books contain twenty-five field order forms, and will be issued only to employees authorized by the department head. The field order is a multiple NCR form and should be distributed as follows:

a. White copy—Submitted to vendor;

b. Yellow copy—Submitted to accounts payable/purchasing;

c. Pink copy—Remains in the book for the permanent file.

The field order number must be on the vendor’s invoice for the invoice to be processed for payment. New field order books will be issued when the previously issued book is returned to purchasing.

B. Purchases—One Thousand Five Hundred to Seven Thousand Five Hundred Dollars. When the purchase is over one thousand five hundred dollars, purchasing will attempt to obtain the lowest practical price for such goods and services, and will issue a purchase order to the vendor. A goldenrod copy of the purchase order will be returned to the requesting department. Once the goods or services are received, the department will verify the order is complete, attach the packing slip to the goldenrod copy of the purchase order and return it to accounts payable for payment processing. If a partial order is received, stamp the packing slip with the A/P stamp, write the purchase order number on it, and forward it to accounts payable. Attach the goldenrod copy of the purchase order only when the order is complete and final payment is approved.

In response to receipt of a properly authorized purchase requisition that includes clear, concise written specifications, purchasing will use its knowledge of supplies, vendors, costs, and the market to issue purchase orders as appropriate. Purchasing will see that goods and services are obtained as economically as possible, even if the procurement is small.

C. Vendor List Purchases—Seven Thousand Five Hundred to Fifteen Thousand Dollars.

1. RCW 39.04.190 allows purchasing of materials, supplies or equipment not connected to a public works project, to be awarded by a vendor list process. The city has adopted this process by resolution (Resolution No. 500, 2004).

2. At least twice a year, per RCW 39.04.190(2), the city shall publish, in the city’s official newspaper, notice of the existence of a roster of vendors for materials, supplies, and equipment, and shall solicit names of vendors for the roster.

3. The city shall use the following process to obtain telephone and/or written quotations from vendors for the purchase of materials, supplies, or equipment:

a. The requesting department shall draft a written description of the specific materials, supplies, or equipment to be purchased, including the number, quantity, quality, and type desired, the proposed delivery date, and any other significant terms of purchase on a purchase requisition;

b. The mayor/designee or appropriate department head/designee will approve all requisitions expected to exceed seven thousand five hundred dollars;

c. Purchasing shall make a good faith effort to contact at least three of the vendors on the roster to obtain telephone or written quotations for the required materials, supplies, or equipment;

d. The quotations from one vendor shall not be shared with other vendors solicited for the quote on the materials, supplies, or equipment;

e. A written record shall be made of each vendor’s quote on the material, supplies, or equipment, and of any conditions imposed on the quote by such vendor;

f. Purchasing shall present all quotations and a recommendation for award of the purchase to the mayor or designee.

4. Award. The mayor or designee will award qualifying vendor list purchases. Purchasing will issue a purchase order to the successful bidder. A goldenrod copy of the purchase order will be returned to the requesting department. Once the goods or services are received, the receiving department will verify that the order is complete, attach the packing slip to the goldenrod copy of the purchase order and return it to accounting for payment processing. If a partial order is received, stamp the packing slip with the A/P stamp, write the purchase order number on it, and forward it to accounting. Attach the goldenrod copy of the purchase order only when the order is complete and final payment is approved.

D. Invitation to Bid—Fifteen Thousand Dollars or More.

1. A call for bids will be sought in response to a properly authorized purchase requisition submitted to purchasing that includes clear, concise written specifications. Such requisitions will include approval by the mayor or designee or the appropriate department head/designee. The mayor or designee shall approve all vehicle requisitions. Once approved, purchasing will solicit sealed bids. Bid specifications should incorporate a clear and accurate description of the technical requirements for the material or product to be purchased. Such descriptions should not contain features that unduly restrict competition. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equal” description may be used. The city has no obligation to accept proposed substitutions or engage outside consultants or experts to evaluate proposed substitutions. Acceptance of a substitute product proposed as an “equal” to that specified will be made in writing and, if made prior to bid, other bidders will be notified if practical and convenient.

2. At least one notice of the call for bids shall be published in the city’s official newspaper or a newspaper of general circulation a minimum of thirteen days prior to bid opening. Other methods may be used to attract potential bidders in addition to, but not in place of, publication in the newspaper. For example, notices may be placed on the city’s website, or advertised in trade papers or magazines.

3. Sealed bids will be submitted to the purchasing coordinator at the location specified in the invitation or call for bids. At the appointed time, all bids will be opened and read aloud in the presence of the bidders or their representatives.

4. Contract forms shall be reviewed and approved by the city attorney.

5. Award.

a. City council will make all sealed bid awards. Once an award is made, purchasing will issue a purchase order to the successful bidder. Such purchase orders will be signed by the purchasing coordinator and reference city council’s award. A goldenrod copy of the purchase order will be returned to the requesting department. Once the goods or services are received, the department will verify the order is complete, attach the packing slip to the goldenrod copy of the purchase order, and return it to accounts payable for payment processing.

b. The contract will be awarded to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. RCW 43.19.1911(9) states:

In determining “lowest responsible bidder,” in addition to price, the following elements shall be given consideration:

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

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

c. Whether the bidder can perform the contract within the time specified;

d. The quality of performance of previous contracts or services;

e. The previous and existing compliance by the bidder with laws relating to the contract or services;

f. Such other information as may be secured having a bearing on the decision to award the contract: PROVIDED, that in considering bids for purchase, manufacture, or lease, and in determining the “lowest responsible bidder,” whenever there is reason to believe that applying the “life cycle costing” technique to bid evaluation would result in lowest total cost to the city, first consideration shall be given by city purchasing activities to the bid with the lowest life cycle cost that complies with specifications. “Life cycle cost” means the total cost of an item to the city over its estimated useful life, including costs 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. The “estimated useful life” of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner.

c. Any recommendation that uses life cycle costing to determine the lowest responsive and responsible bidder shall be approved by the finance director. Local taxes generated by the purchase may be considered when determining the lowest responsive and responsible bid as permitted by RCW 39.30.040. When a trade-in option is in the city’s best interests, the price offered on the trade will be considered when determining the lowest responsive and responsible bid.

E. Rejection of Bids. The city reserves the right to reject any bid not in substantial compliance with the bid documents, or all prescribed public bidding procedures and requirements and may reject for good cause any or all bids upon a finding of the city that it is in the public interest to do so.

F. Open Purchase Order. Open purchase orders may be established when there are a sufficient number of small purchases from a single supplier. City employees should contact purchasing to inquire about establishing open purchase orders.

G. Local Business Open Accounts. The city has established open accounts at certain local businesses. Purchases on these accounts may be made by authorized employees up to the individual limits established annually through the purchasing signature authorization process. Once the goods are purchased, the receipt should be stamped with the A/P stamp, coded and signed by the authorized purchaser, and forwarded to accounts payable. Open purchase orders may also be established by departments on these accounts. When purchasing on an open purchase order, the receipt is forwarded to accounts payable upon completion of the purchase; no further coding or signature is required.

H. Credit Cards. Some suppliers accommodate the city by providing the use of a supplier-specific credit card. All such credit cards are held in purchasing. Before an eligible employee can use a credit card, the employee is required to obtain a signed form from his or her supervisor authorizing the use of the card. The form details what will be bought and sets a dollar limit. Purchasing will not release a credit card without this preauthorization. Supervisors will be notified if there are any discrepancies between the preauthorization and the store receipt.

I. Procurement Card. Purchasing holds a procurement card that can be used to acquire items when a purchase order is either impractical or not available. Before an authorized employee can use a procurement card, the employee is required to obtain a signed and dated form from his or her supervisor authorizing the use of the card. The form details what will be bought and sets a dollar limit. Purchasing will not release a procurement card without this preauthorization. Supervisors will be notified if there are any discrepancies between the preauthorization and the store receipt. For additional information see the procurement card procedure manual.

(Ord. 864 §§ 4—7, 2009; Ord. 805 § 3 (part) (Exh. A § 3), 2006)

3.20.050 Request for proposals (RFP).

A. Request for Proposals—Materials, Equipment and Supplies. Request for proposals can be used as an alternative to the competitive bidding procedures set forth in Section 3.20.040(D), when it is determined in writing that the use of competitive bidding is neither practicable nor advantageous to the city. City council approval of a call for proposals will be sought in response to the submittal of a properly authorized purchase requisition that includes a description of the requirements and identifies significant evaluation factors and their relative importance. Once approved, purchasing will solicit sealed proposals. Such requisitions will include approval by the mayor or designee or the appropriate department head/designee.

At least one notice of the request for proposals shall be published in the city’s official newspaper, or a newspaper of general circulation, a minimum of thirteen days prior to proposal deadline. Other methods may be used to attract potential proposers in addition to, but not in place of, publication in the newspaper. For example, notices may be placed on the city’s website, or advertised in trade papers or magazines.

Sealed proposal responses will be submitted to the purchasing coordinator. At the appointed time, a register of proposals shall be prepared containing the name of each proposer and a description identifying the item offered.

City council will make awards pursuant to a request for proposals. When an award is made, a contract and/or a purchase order will be issued to the successful proposer. In general, contracts and purchase orders are issued when services are predominant and purchase orders are issued when goods are predominant. Such purchase orders will be signed by the purchasing coordinator and reference city council’s award.

(Ord. 864 § 8, 2009; Ord. 805 § 3 (part) (Exh. A § 4), 2006)

3.20.060 Competitive negotiation.

A. Telecommunication Systems/Services.

1. Competitive negotiation can be used as an alternative to the competitive bidding procedures for the acquisition of electronic data processing and telecommunications systems; energy-saving or energy-related equipment or services; or when it is determined in writing that the use of competitive bidding is neither practical nor advantageous to the city.

2. “Electronic data processing” includes, but is not limited to, systems that comprise a combination of equipment or units to provide input of source data, and storage and processing of data and output in predetermined form, including a central processing unit (CPU) or mainframe (RCW 36.92.020 (1967)). In other words, hardware, software, firmware, “smart cards” or any combination thereof.

3. Eligible purchases (RCW 39.35A.030 (1985)) are those for “equipment, materials, or supplies that are expected, upon installation, to reduce the energy use or energy cost of an existing building or facility, and the services associated with the equipment, materials, or supplies, including but not limited to design, engineering, financing, installation, project management, guarantees, operations, and maintenance.” (RCW 39.35A.020(1) (1985)). The procurement may be structured on a performance basis, rather than a design specification, so that the city may specify a result, rather than the type or model of equipment (RCW 39.35A.020(3) (1985)).

4. The approval requirements found in Section 3.20.040(D) also apply to procurement by competitive negotiation. The approving officer (e.g., mayor or designee, or department head/designee, depending upon the anticipated procurement cost) shall determine in writing that competitive bidding is either not practical or not advantageous to the city.

5. Requisitions for electronic data processing systems shall be routed through and approved by the computer services manager or contracted IT services provider for compatibility certification prior to purchase. This will allow for the appraisal of the present supply of devices, and the possible elimination of an unnecessary expenditure of city funds.

6. A request for proposals should be prepared and submitted to enough qualified sources to permit reasonable competition consistent with the requirements of the purchase. The request for proposal should identify significant evaluation factors, including price, and their relative importance. The city reserves the right to determine the number of sources considered to be adequate.

7. The city will provide procedures for technical evaluation of the proposals received, identification of qualified sources, and selection criteria for awarding the contract.

B. Award. The city may select the qualified vendor whose proposal is most advantageous to the city, with price and other factors considered. If the city is unable to negotiate a contract successfully, the city may terminate negotiations and proceed to negotiate with the second most advantageous proposer, and so on.

C. Rejection of Bids. The city reserves the right to reject any bid not in substantial compliance with the bid documents, or all prescribed public bidding procedures and requirements and may reject for good cause any or all bids upon a finding of the city that it is in the public interest to do so.

(Ord. 864 § 9, 2009; Ord. 805 § 3 (part) (Exh. A § 5), 2006)

3.20.070 Public works.

Public works are defined by state law and city ordinance. RCW 39.04.010 defines the term “public work” as follows: “The term public work shall include all work, construction, alteration, repair or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or that is by law a lien or charge on any property therein.” WAC 296-127-010(7)(b)(iii) defines “ordinary maintenance” as: “Work not performed by contract and that is performed on a regularly scheduled basis (e.g., daily, weekly, monthly, seasonally, semiannually, but not less frequently than once per year), to service, check, or replace items that are not broken; or work not performed by contract that is not regularly scheduled but is required to maintain the asset so that repair does not become necessary.”

A. Limited Public Works Projects under Seven Thousand Five Hundred Dollars.

1. If a work, construction, alteration, repair or improvement project is estimated to cost less than seven thousand five hundred dollars, the department or purchasing may solicit a quote from a qualified contractor, preferably on the small works roster.

2. For limited public works projects, purchasing may solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster and the contract shall be awarded to the lowest responsible bidder as defined under RCW 43.19.1911(9). After an award is made, the quotations shall be open to public inspection and available by electronic request.

3. For limited public works projects, the city may elect to waive the payment and performance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW. In waiving such requirements the city assumes the liability for the contractor’s nonpayment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed under RCW Title 82. However, the city shall have the right of recovery against the contractor for any payments made on the contractor’s behalf. Prevailing wage and insurance requirements are not waived for limited public works projects. For projects under seven thousand five hundred dollars, the Labor and Industries combined intent and affidavit prevailing wage form is required from the contractor upon project completion. Purchasing will send the blank form to the contractor along with the insurance requirements with the notice of award, before project commencement.

B. Limited Public Works Process—Seven Thousand Five Hundred Dollars to Fifty Thousand Dollars.

1. If a work, construction, alteration, repair, or improvement project is estimated to cost less than fifty thousand dollars, the city may award such a contract using the limited public works process provided under RCW 39.04.155(3).

2. For limited public works projects, purchasing will solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster and the contract shall be awarded to the lowest responsible bidder as defined under RCW 43.19.1911(9). After an award is made, the quotations shall be open to public inspection and available by electronic request.

4. The city shall maintain a list of the contractors contacted and the contracts awarded during the previous twenty-four months under the limited public works process, including the name of the contractor, the contractor’s registration number, the amount of the contract, a brief description of the type of work performed, and the date the contract was awarded.

5. Purchasing shall present all quotations/bids and recommendation for award of the contract to the lowest responsible bidder to the mayor or designee. Whenever there is a reason to believe that the lowest acceptable bid is not the best price obtainable, all bids may be rejected and the city may call for new bids.

6. Award. The mayor or designee shall have the ability to award all limited public works contracts of fifty thousand dollars or less to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If there are questions or concerns regarding whether a bidder is responsible, refer to subsection (C) of this section and the purchasing coordinator for guidance.

7. Rejection of Bids. The city reserves the right to reject any bid not in substantial compliance with the bid documents, or all prescribed public bidding procedures and requirements and may reject for good cause any or all bids upon a finding of the city that it is in the public interest to do so.

8. Exception. Code cities with a population of fewer than twenty thousand are released from the requirements of the bid laws if no responsive bids are received (RCW 35.23.352(1)). The mayor or designee may talk to contractors or suppliers and negotiate with them, or the city may perform the project using city employees.

C. Small Works Roster under Three Hundred Fifty Thousand Dollars.

1. The city need not comply with formal sealed bidding procedures under subsection (D) of this section for the construction, building, renovation, remodeling, alteration, repair, or improvement of real property where the estimated cost does not exceed three hundred fifty thousand dollars, including the costs of labor, material, equipment and sales and/or use taxes as applicable. Instead, the city may use the small works roster procedures for public works projects as set forth herein. 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.

2. The small works roster shall consist of all responsible contractors who have requested to be on the roster, and where required by law are properly licensed or registered to perform such work in this state. As a condition of being placed on the roster, contractors shall keep current records of any applicable licenses, certifications, registrations, bonding, insurance, or other appropriate matters on file with the city.

3. At least once a year, the city shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster and solicit the names of contractors for such roster. Responsible contractors shall be added to the roster at any time that they submit a written request and necessary records. The city may require contractors to sign a master contract that takes effect when a small works roster award is made. An interlocal contract or agreement between the city of Ocean Shores, Washington, and other local governments establishing a small works roster or rosters to be used by the parties to the agreement or contract shall clearly identify the lead entity that is responsible for implementing the small works roster provisions.

4. The city shall obtain written or electronic quotations for public works contracts from contractors on the appropriate small works roster to assure that a competitive price is established and that contracts are awarded to the lowest responsible bidder, as defined in RCW 43.19.1911(9). Such quotations shall be obtained as follows:

a. A contract awarded from a small works roster need not be advertised. Invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. 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.

b. Quotations may be invited from all appropriate contractors on the appropriate small works roster. If the estimated cost of the work is from one hundred fifty thousand dollars to three hundred fifty thousand dollars, the city may choose to solicit bids from fewer than all the appropriate contractors on the appropriate small works roster but shall also notify the remaining contractors on the appropriate small works roster that quotations on the work are being sought. The city has the sole option of determining whether this notice to the remaining contractors is made by:

i. Publishing notice in a legal newspaper in general circulation in the area where the work is to be done;

ii. Mailing a notice to these contractors; or

iii. Sending a notice to these contractors by facsimile or other electronic means.

c. For purposes of this chapter, “equitably distribute” means that the city may not favor certain contractors on the appropriate small works roster over other contractors on the appropriate small works roster who perform similar services. At the time quotes are solicited, the city representative shall not inform any contractor of the terms or amount of any other contractor’s quote for the same project.

d. Purchasing shall keep a written record of each contractor’s bid on the project and of any conditions imposed on the bid. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry.

5. For all public works projects in excess of fifty thousand dollars, the mayor or designee shall present all quotations/bids and recommendation for award of the contract to the lowest responsible bidder to the city council. The city council shall award the contract for the public works project to the lowest responsible bidder. Whenever there is a reason to believe that the lowest acceptable bid is not the best price obtainable, all bids may be rejected and the city council may call for new bids. RCW 43.19.1911(9) states:

In determining “lowest responsible bidder,” in addition to price, the following elements shall be given consideration:

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

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

c. Whether the bidder can perform the contract within the time specified;

d. The quality of performance of previous contracts or services;

e. The previous and existing compliance by the bidder with laws relating to the contract or services;

D. Competitive Sealed Bid.

1. Public works of more than seventy-five thousand dollars for one craft or trade or one hundred sixteen thousand one hundred fifty-five dollars for more than one craft or trade or as may be amended by the Washington State Legislature will be awarded by competitive sealed bidding unless a small works roster is used (RCW 35.23.352(1)).

2. The city council shall approve the call for bids. Once approved, purchasing will obtain sealed bids in response to written plans and specifications. Specifications should not contain features that unduly restrict competition. Purchases in this dollar range are usually handled by the competitive sealed bidding method. Exceptions require council action.

3. At least one notice of the call for bids shall be published in the city’s official newspaper. Advertisement will occur a minimum of thirteen days prior to bid opening. Other methods may be used to attract potential bidders in addition to, but not in place of, publication in the city’s official newspaper. For example, notices may be placed on the city’s website, or advertised in trade papers or magazines.

4. Sealed bids will be submitted to the purchasing coordinator or department designee. At the appointed time, all bids will be opened and read aloud in the presence of the bidders or their representatives.

5. RCW 39.30.060 specifies that every bidder for a public works contract over one million dollars shall submit, with the bid or within one hour of the published bid submittal time, the names of all the subcontractors with whom the bidder will subcontract for heating, ventilation and air conditioning, plumbing and electrical work. When a bidder is successfully awarded the contract, he/she is obligated to use these subcontractors named on the list. If such a list is not provided, the bid will be considered nonresponsive (this amendment was included in Chapter 94, Laws of 1995).

6. Bid bonds are required on public works projects to help ensure that a bid has been made in good faith and that the bidder will enter into a contract if the bid is accepted. RCW 35.23.352(1) requires that each bid shall be accompanied by a bid proposal deposit in the form of a cashier’s check, money order, or surety bond made payable to the city in a minimum amount of five percent of the bid amount, including sales tax. Pursuant to state law, “no bid shall be considered unless accompanied by such bid proposal deposit.”

7. RCW 39.08.010 provides that a municipality shall require a performance bond whenever it enters into a public works contract, to ensure that the job will be completed and that all workers, subcontractors, and suppliers will be paid. This performance bond requirement applies to all public works contracts, whether or not let pursuant to competitive bids. A failure to obtain such a bond subjects the city to all claims of persons performing the contract (RCW 39.08.015).

8. Public works contracts shall contain a provision requiring the local government to retain an amount not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and collection of claims by any persons arising under the contract and the state with respect to taxes that may be due from the contractor. The money so reserved shall be, at the option of the contractor:

a. Retained in a fund by the public body;

b. Deposited in an interest-bearing account in a bank, mutual savings bank, or savings and loan association;

c. Placed in escrow with a bank or trust company.

9. Interest on these moneys shall be paid to the contractor (RCW 60.28.011).

10. The city attorney shall review the contract and general and special conditions form. Contracts shall be signed by the mayor or designee.

11. Award. The city council shall award the contract to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. If there are questions or concerns regarding whether a bidder is responsible, refer to subsection (D) of this section and the purchasing coordinator for guidance.

12. Rejection of Bids. The city reserves the right to reject any bid not in substantial compliance with the bid documents, or all prescribed public bidding procedures and requirements and may reject for good cause any or all bids upon a finding of the city that it is in the public interest to do so.

13. Exception. Code cities with a population of fewer than twenty thousand are released from the requirements of the bid laws if no responsive bids are received (RCW 35.23.352(1)). They may talk to contractors or suppliers and negotiate with them or city employees may perform the project.

(Ord. 1049 §§2—9, 2019; Ord. 864 §§ 10—13, 2009; Ord. 805 § 3 (part) (Exh. A § 6), 2006)

3.20.080 Exemptions.

A. Cooperative Purchasing Agreement (“Interlocal”).

1. Pursuant to Chapter 39.34 RCW, the city may join with the state of Washington, other states or political subdivisions for the purchase of material, equipment, supplies, or services. This is accomplished by entering into a written intergovernmental cooperative purchasing agreement that requires compliance with the state’s or the political subdivision’s applicable procurement law. In addition, the city may make a bid call with another government entity as a joint purchase complying with the bid requirements of the participating jurisdictions. The mayor or designee is authorized to join in cooperative purchasing arrangements with other public agencies similarly authorized, whenever the best interests of the city would be served thereby. Any cooperative purchasing agreement shall set forth fully the purposes, powers, rights, objectives and responsibilities of the contracting parties and shall be governed by the requirements of state law in regard to competitive bidding, when applicable.

2. Such purchases may be made without advertising in the city’s official newspaper. Approval and authority for entering into an interlocal cooperative purchasing agreement will be determined by the anticipated cost of the procurement. When practical, the city should include language in its solicitations that allows other public agencies to purchase from the city’s bids or quotations.

B. Sole Source or Proprietary Procurements.

1. Occasions may arise when competition among potential vendors is not possible for a particular procurement. These situations may occur:

a. When there is clearly and legitimately (RCW 39.04.280(1)(1998)) only one source capable of supplying the subject matter in a timely fashion;

b. When there are special facilities or market conditions that result in only one source;

c. In the event of emergencies; and

d. When there is only one source capable of supplying the products in a timely fashion and that seeking competitive prices would be impractical.

2. Purchases may be made directly from a sole source vendor without soliciting other bids or quotes.

3. In the event the material, equipment, supplies, or services are available from only one supplier, written documentation demonstrating the appropriateness of sole source procurement should be submitted to and approved by the purchasing coordinator. Except in the event of an emergency, the contract and the basis for the exception from competitive procurement shall be recorded and open to public inspection immediately after its award (RCW 39.04.280 (1998)).

4. When the purchase exceeds seventy five thousand dollars, the city council may determine by resolution that there is only one source and authorize the purchasing coordinator to conduct negotiations as appropriate as to price, delivery, and terms. The resolution will recite the factual basis for the exception from competitive procurement. Such justification is subject to the approval of the mayor/designee and the city attorney.

C. Emergencies.

1. Competitive bidding is not required when an emergency exists; however, in making emergency purchases, an effort will be made to include the level of competition that is practical under the circumstances.

2. The mayor or designee is authorized to make emergency purchases upon a finding, duly entered of record, of the existence of an emergency. Such emergencies may include but are not limited to:

a. Any breakage or loss of equipment or in other circumstances in that necessary service is interrupted or is about to be interrupted; or

b. Situations where the city may suffer a substantial loss by reason of the time required for following the regular purchasing procedures that shall be reported to the city council at the next meeting.

3. If an emergency exists, the mayor or designee is authorized to act and will seek a resolution from the council that will:

a. Declare an emergency situation exists;

b. Waive competitive bidding requirements; and

c. Award, on behalf of the city, contracts necessary to address the emergency situation (including, but not limited to, architectural and engineering services).

(Ord. 864 §§ 14, 15, 2009; Ord. 805 § 3 (part) (Exh. A § 7), 2006)

3.20.090 Protests.

Vendors may appeal or protest a proposal solicitation or award of contract issued by the city of Ocean Shores; provided, that the vendor strictly follows the procedures described below.

Prior to the deadline for submitting bids or proposals, vendors may appeal or protest specifications, terms, or requirements. After the deadline for submission of bids or proposals, vendors may appeal or protest the award or pending award to the apparent low bidder or the selection of the apparently most advantageous proposal.

A. Procedures for Initial Appeal or Protest. The appeal or protest shall:

1. Be in writing; and

2. Explicitly identify itself as an appeal or protest; and

3. Explicitly identify the bid/project/ request being appealed or protested; and

4. Explicitly state all reasons and bases in law and fact supporting the appeal or protest, including, but not limited to, identification of any and all specifications, terms, requirements, or conditions to which the vendor objects; and

5. Include any and all supporting documents; and

6. Be filed with the city clerk.

B. Deadline for Filing Initial Appeal or Protest. If a vendor appeals or protests a purchase specification, term, condition, or requirement, any and all appeals and protests shall be filed with the city clerk no later than seven calendar days prior to the deadline for submission of bids or proposals. If the vendor appeals or protests an award or pending award, the appeal or protest shall be filed with the city clerk no later than five business days after the bidder is awarded the contract or a vendor’s proposal is selected as most advantageous to the city. In no event will appeals or protests be heard or considered if these deadlines are not met. The city reserves the right to proceed with the purchase without notice to the appellant or protestor, including execution of contracts, notwithstanding the pendency of any appeal or protest.

C. Consideration of Initial Appeal or Protest. A vendor’s initial appeal or protest will be reviewed by the purchasing coordinator, the city attorney, the department head of the procuring department, and the finance director, or their designees. The initial appeal or protest will be decided based upon the written appeal or protest, supporting documents, and other information obtained by those reviewing the appeal or protest. A meeting or conference with the appellant or protestor will occur only if the finance director, at his or her sole discretion, determines that a meeting or conference with the appellant or protestor would materially assist the city in making its decision. Only those issues raised by the appellant or protestor in its initial written appeal or protest filed with the city clerk will be considered. The finance director or designee will issue a written decision no later than ten business days after the filing of the initial appeal or protest with the city clerk. The finance director may exercise discretion to extend the time for decision if more time is needed.

D. Appeal from Denial of Initial Appeal or Protest. An appellant or protestor may only appeal the finance director’s decision by following the procedures described in this section. The appeal will be decided by the city council. The appellant or protestor shall file its appeal in writing with the city clerk no later than seven calendar days after the date of the finance director’s written decision. The appeal shall state the basis in law and fact for the appeal, include a copy of the initial appeal or protest and the decision from which the appellant or protestor appeals, and state whether the appellant requests time to appear before council to present its appeal. Council will not consider any issues not raised in the initial appeal or protest. At its sole discretion, council may decide to allow the appellant to make any presentation in addition to appellant’s written submission if council finds that such presentation would materially aid its decision. Council may form a committee of less than the entire council to consider the appeal and recommend a decision to the entire council. The council’s decision shall be final and binding.

(Ord. 805 § 3 (part) (Exh. A § 8), 2006)

3.20.100 Professional and personal services.

Professional or personal services are those services involving specialized skill, education, and special knowledge. These services include, but are not limited to, architectural, engineering, design services, accounting, art, bond brokerage, insurance brokerage, legal, real estate appraisal, relocation assistance, title abstracts, surveying, soils analysis, and core testing.

A competitive process is not required for professional or personal services, other than professional engineering or architectural services for the design of city improvements.

Procurement and administration of such contracts are usually the responsibility of the mayor or designee or the department head. The mayor or designee may sign professional or personal service contracts where sufficient funding exists in the annual budget or plans and systems ordinance. The purchasing coordinator or city attorney should be consulted to determine whether a particular contract requires council approval.

A. Architectural, Engineering and Design Services. Professional engineering or architectural services should be selected either from a prequalified list or by advertising a request for qualifications for the specific project. The prequalified list is maintained by purchasing.

B. Advertisement.

1. Professional engineering or architectural services requirements should be published in advance in the official city newspaper and in any other media reasonably likely to attract sufficient numbers of potential service providers. The announcement should state concisely the general scope and nature of the project or work requiring the services, and the address of a city representative who can provide further details.

2. Announcements should occur either by: (a) advertising an announcement for a specific project on each occasion when professional engineering or architectural services are required; or (b) advertising a general announcement for the city’s projected requirements for any category or type of engineering or architectural services (RCW 39.80.030 (1981)).

3. The city encourages architectural and engineering firms to submit a statement of qualifications and performance data annually. When services are needed, the city will evaluate current statements of qualifications and performance data on file with the city, together with those that may be submitted by other firms regarding the proposed project.

C. Contract Negotiations.

1. Discussions will be conducted with one or more firms regarding anticipated concepts and the relative utility of alternative methods of furnishing the required services. Using criteria established by the city for the project, category, or type of services needed, a professional/personal services contractor will be selected that is deemed to be the most highly qualified to provide the services required for the proposed project.

2. The city will negotiate a contract with the most qualified firm at a price that the city determines is fair and reasonable. In making its determination, the city will take into account the estimated value of the services to be rendered as well as the scope, complexity, and professional nature of the services to be provided. If the city is unable to negotiate a satisfactory contract with the firm selected at a price that is determined to be fair and reasonable, negotiations with that firm will be terminated in writing. Another firm will then be selected and the process continued until an agreement is reached or the process is terminated (RCW 39.80.050 (1981)).

(Ord. 864 § 16, 2009; Ord. 805 § 3 (part) (Exh. A § 9), 2006)

3.20.110 Surplus.

The city council may authorize the sale of personal property belonging to the city if it determines that the property is not and will not be needed for city purposes and gives notice of intention to sell as provided in this section. All sales shall be public, except for scrap or sales to other government entities, which may be by private sale. Sales to other government entities shall be at fair market value unless otherwise declared by council to be in the best interests of the public. Scrap may be sold by private sale at prices established by current market conditions. Scrap is any equipment or material that cannot serve its original purpose. Trade-ins of old equipment to upgrade equipment of the same or reasonably related kind are permitted when it is in the best interests of the city. The purchasing coordinator shall be responsible for the sale, trade, or other disposition of surplus personal property and scrap belonging to the city of Ocean Shores.

A. Public Notice. The notice of intent to sell surplus or scrap at a public sale shall be published once a week for two consecutive weeks in the city official newspaper immediately prior to the sale. The notice shall state the time and place of the sale.

B. Inventoried Items. Any inventoried item that is going to be scrapped, surplused, or traded in will be signed off by the employee responsible and approved by his/her supervisor.

(Ord. 805 § 3 (part) (Exh. A § 10), 2006)