Chapter 2.75
CITY CONTRACTING

Sections:

2.75.010    Purpose.

2.75.020    City Manager authorization.

2.75.030    Definitions.

2.75.040    General provisions.

2.75.050    Purchase of goods, materials, supplies or equipment (not related to public works).

2.75.060    Public works projects.

2.75.070    Services contracts.

2.75.080    Contracts in the event of an emergency.

2.75.010 Purpose.

The purpose of these policies is to ensure the purchase of goods and services at a reasonable cost, using an open, fair, documented, and competitive process in compliance with State and local laws. To effectuate this purpose, the City’s policies seek to remain compliant with laws pertaining to code cities with a population over 20,000. The City seeks to establish consistent and effective practices for price solicitations and contracting to promote equitable treatment for those who deal with the City. In addition, the City seeks to obtain the best quality for the best value, to establish appropriate authorization for the execution of contracts, and to guide City employees who are responsible for procuring goods, supplies, materials, equipment and services for the City. All purchases are to be made within budgetary limitations as established within the various departmental and project funds approved in the City’s annual budget.* (Ord. O-10-406 § 1).

*Code reviser’s note: The City now has a biennial budget, as established by Ord. O-16-596. See Chapter 3.01 MVMC.

2.75.020 City Manager authorization.

A. The City Manager has authority to develop administrative procedures to implement these policies. Procedures should ensure the fiscal responsibility of the City in expending resources for goods, supplies, materials, equipment and services for the City. The procurement procedures of the City shall be based on the requirements of State law and local law, and by the guidelines established by the State Auditor.

B. The City Manager is authorized to execute contracts for the procurement of goods, materials, supplies, equipment, nonprofessional and professional services, and public works, without Council approval for an amount not to exceed $35,000. The City Manager is further authorized to execute severance agreements without Council approval for an amount not to exceed $10,000. The City Manager is further authorized to execute change orders for public works projects wherein the change order is within the total project budget, including the contingency amount. See MVMC 2.75.060, Public works projects. The authority granted to the City Manager may be delegated by the City Manager to department directors as set forth in MVMC 2.75.040, General provisions. (Ord. O-19-661 § 1; Ord. O-10-406 § 1).

2.75.030 Definitions.

A. “Architectural and engineering services” means professional services rendered by any person, other than a City employee, to perform activities within the scope of the professional practice of architecture (Chapter 18.08 RCW), professional practice of engineering and land surveying (Chapter 18.43 RCW), and/or professional practice of landscape architecture (Chapter 18.96 RCW).

B. “Bid,” “call for bid,” or “invitation to bid” means a process to request bids from vendors, suppliers, or contractors. The call for bid may be a formal competitive bid as defined in subsection (F) of this section, or may be sought by invitation to bid from select contractors on the MRSC Small Works Roster according to the process established in Resolution R-08-628 as amended by R-09-698 for a small work or limited public work.

C. “Change order” means a written authorization executed by the City and the contractor, under a public works contract, that specifies work to be performed that is beyond the original scope and/or specifications for the project and details all costs associated with such work.

D. “Craft” or “trade” refers to a trade or occupation for which prevailing wage categories are established by the Department of Labor and Industries of the State of Washington in the locality of the City’s projects or purchases.

E. “Emergency” means unforeseen circumstances beyond the control of the City that either present a real, immediate threat to the proper performance of essential functions or will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

F. “Formal competitive bid” is the process of advertising and receiving sealed written bids from prospective service providers for public works in an amount over $300,000 or for purchases over $35,000.

G. “Goods” includes materials, supplies and equipment and has its ordinary meaning, i.e., articles of trade, wares, merchandise.

H. “Informal competitive quotes” are price quotes from vendors that are not obtained by formal competitive bid.

I. “Interlocal agreements” are the exercise of governmental powers in a joint or cooperative undertaking with another public agency pursuant to Chapters 35A.35 and/or 39.34 RCW and/or RCW 35A.11.040.

J. “Limited public works process” refers to the process adopted in Resolution R-08-628 as amended by R-09-698, or as hereafter amended, that may be used to award a contract for work, construction, alteration, repair, or improvement projects estimated to cost less than $35,000, as provided in RCW 39.04.155, as written or hereafter amended.

K. “MRSC” means Municipal Research and Services Center.

L. “Nonprofessional services” are services that are purchased by the City wherein the contractor does not meet the definition of “architectural and engineering services” or “professional services” as defined herein.

M. “On-call contract” means a contract that is awarded with general provisions for the services to be rendered, the term of which will not exceed 36 months. As services are needed, specific task orders are initiated by City staff, to be completed by the vendor.

N. “Ordinary maintenance” is work not performed by contract and that is performed on a regularly scheduled basis (e.g., daily, weekly, seasonally, semiannually, but more 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. See WAC 296-127-010(7)(b)(iii), adopted by reference as if set forth in full herein.

O. “Professional services” are services provided by consultants that provide highly specialized expertise to solve a problem or render professional opinions, judgments, or recommendations. The labor and skill involved to perform these types of services are predominantly mental or intellectual, rather than physical or manual. Examples include graphics design, advertising, analysis, financial expertise, accounting, artists, attorneys, bond brokers, computer consultants, insurance brokers, economists, planners, real estate services, etc. This term does not include “architectural and engineering services” as defined herein.

P. “Public work,” as defined in RCW 39.04.010, includes all work, construction, alteration, repair or improvement other than ordinary maintenance, executed at the cost of the City or which is by law a lien or charge on any City property. Public work projects include the related materials, supplies and equipment to complete the project, and may include sales tax depending on the type of project. Public works include contracts for maintenance of City facilities or real property.

Q. “Request for proposals (RFP)” is an invitation to an individual, firm or other entity to submit a written proposal on a specific commodity.

R. “Request for qualifications (RFQ)” is an invitation to an individual, firm or other entity to submit a written statement of qualification which may include performance data.

S. “Small works roster” is a roster of qualified contractors maintained for use in a modified bid process pursuant to RCW 39.04.155 as written or hereafter amended. The City has adopted the small works roster process in Resolution R-08-628 as amended by R-09-698, or as hereafter may be amended. (Ord. O-10-406 § 1).

2.75.040 General provisions.

A. Policies Governing. These policies shall govern the procurement of goods, supplies, materials, equipment, nonprofessional and professional services, and public works. The City utilizes the MRSC Shared Small Works and Consultant Services Roster programs in compliance with RCW 39.04.155 and 39.80.030 and Resolution R-08-628 as amended by R-09-698. Lease of equipment or other personal property shall follow procedures herein for the purchase of goods, with the aggregate of lease payments used in lieu of purchase price.

B. Legal Authorization Required. Only authorized individuals may legally obligate the City to the payment of expenditures for goods and services, including expenditures obligated by purchase order. Individuals purchasing goods, supplies, materials and equipment on behalf of the City without proper authorization may be personally liable to the vendor and the City, and may be subject to discipline, including termination.

C. Federal or State Funds. When a purchase or contract involves the expenditure of federal or State funds or the receipt of federal or State grants, purchasing shall be conducted in accordance with any applicable federal or State laws or regulations. If the appropriate and relevant federal or State laws or regulations vary from these guidelines, such laws or regulations should be followed. Questions regarding potential conflicts shall be addressed by the City Attorney.

D. Breaking Down or Splitting Purchases (“Bid Splitting”). The breaking down, or splitting, of any purchase or contract into units or phases for the purpose of avoiding the maximum dollar amount is prohibited.

E. Contract Amendments.

1. Amendments must always be written and prepared as an amendment to the original contract, utilizing the City’s standard amendment forms.

a. Amendments whose purpose is to change the contract expiration date (duration or term) may be administratively approved by the City Manager.

b. Amendments that result in the amended contract amount being in excess of the City Manager’s purchasing authority ($35,000) must be authorized by the City Council.

c. Amendments whose purpose is to change the scope of work may be administratively approved by the City Manager if the original contract was a contract approved under the City Manager’s authority; otherwise, the amendment must be presented to the City Council for approval.

2. Change orders that are executed as part of a public works contract are not considered a contract amendment. See MVMC 2.75.060, Public works projects, for policies regarding change orders.

F. Change Orders for Public Works Contracts. Change orders for public works projects shall follow the procedures outlined in MVMC 2.75.060, Public works projects.

G. Procurement Methods.

1. Allowable procurement methods include the use of purchase orders, direct purchases, personal reimbursement, petty cash, credit cards, and contracts, as long as those procurement methods are used in compliance with these policies. With appropriate security and internal controls these procurement methods may be used electronically.

2. Pursuant to the requirements of Chapter 39.34 RCW and RCW 35A.11.040, as written or hereafter amended, the City may enter into an agreement for the purchase of goods, supplies, materials, equipment and services, by entering into a written intergovernmental cooperative purchasing agreement (interlocal agreement).

H. Signature Authority.

1. City Council approval is required for the procurement of goods, supplies, materials, equipment, nonprofessional and professional services, and public works when the contract amount exceeds $35,000, even when a specific appropriation has been authorized in the City’s budget*. If the contract is funded by an existing adopted budget, no resolution is required, but City Council approval is still required.

2. The City Manager is authorized to execute all contracts for the procurement of goods, supplies, materials, equipment, nonprofessional and professional services, and public works in an amount not to exceed $35,000. If, however, there are no funds in the existing budget, or no existing funds available in the budget to reallocate, City Council approval is required. Such approval, authorizing the City Manager to execute the contract, shall be sought by way of resolution and budget amendment.

3. Pursuant to Chapters 35A.35, 35A.79 and/or 39.34 RCW and/or RCW 35A.11.040, as applicable, the City Council shall also approve all agreements for the acquisition of real property and shall approve all interlocal or cooperative agreements with other governmental or quasi-governmental agencies, again by resolution.

4. The City Manager is authorized to execute severance agreements in an amount not to exceed $10,000.

5. The City Manager may delegate signature authority to other department directors for purposes of efficiency, in an amount up to $10,000. Such delegation shall be in writing, and filed with the City Clerk with a copy to the Finance Director. The City Clerk’s copy shall be placed in the director’s personnel file. The authority delegated to a department director shall be for the purpose of making purchases and letting contracts for items, programs and services appropriated by fund in the adopted annual budget.* (Ord. O-19-661 § 2; Ord. O-10-406 § 1).

*Code reviser’s note: The City now has a biennial budget, as established by Ord. O-16-596. See Chapter 3.01 MVMC.

2.75.050 Purchase of goods, materials, supplies or equipment (not related to public works).

A. Threshold Limit for Competitive Bids. For the purchase of goods, materials, supplies and equipment costing more than $35,000 and not to be used in connection with any public work, the City will call for formal competitive bids or may opt to use a State bid. For items priced under $35,000, see subsection (B) of this section. Pricing must include sales tax, delivery and installation charges, etc. Bid splitting, for purposes of remaining below the threshold for formal competitive bids, is prohibited.

B. Informal Competitive Quotes. For purchases under $35,000, telephone or written quotes shall be obtained from no less than three prospective vendors whenever possible.

C. Purchase of Electronic Data Processing and Telecommunications Systems. The City may follow a competitive negotiation process as an alternative to the bid process for electronic data processing and telephone systems pursuant to RCW 39.04.270.

D. Exceptions to Competitive Quotes or Bids – Not an Emergency. The City Manager is authorized to approve purchases within the scope of the City Manager’s authority as set forth herein without obtaining the required competitive quotes or bids under the following conditions. See MVMC 2.75.080, Contracts in the event of an emergency, for policies relating to an emergency.

1. Purchases Involving Special Facilities or Market Conditions.

a. Surplus or Distress Sale. When it is possible to procure obvious bargains through the procurement of surplus or distress material, supplies, or equipment.

b. Items for Quick Delivery. When obtaining competitive bids or quotations will cause delay resulting in an appreciable loss to the City.

2. Auctions. RCW 39.30.045, as written or hereafter amended, authorizes the City to acquire supplies, materials, and equipment through an auction conducted by the United States or any agency thereof, an agency of the State of Washington, a municipality or other government agency, or any private party, without quotations or bids, if the items to be purchased can be obtained at a competitive price.

3. Interlocal Cooperative Purchasing Agreements. Goods, materials, equipment, and supplies may be purchased under the process established by RCW 35A.11.040 and 39.34.080 using cooperative purchasing agreements with a city, county, state, or other public agency. In order to utilize this exception, the interlocal cooperative purchasing agreement must have already been approved by the City Council.

4. Sole Source Procurement. When there is only one source of the required goods, materials, supplies, or equipment, the City may engage in direct negotiations with that vendor. Similarly, the City may engage in direct negotiations with a particular vendor in order to maintain compatibility or consistency with existing systems, or in other unique circumstances. Utilizing this provision should be done in consultation with the City Attorney. The written determination as to sole source will be placed in the contract file maintained by the City Clerk.

5. No Bids or Quotations Received. When no bids or quotations are received in response to an invitation to bid or request for informal competitive quotes, staff is authorized to procure the required item through direct negotiations with a vendor or to rebid as appropriate.

6. Insurance or Bonds. The City may obtain insurance or purchase bonds without complying with the competitive bid process when it is advantageous to the City to do so.

E. Purchasing in the Event of an Emergency. See MVMC 2.75.080, Contracts in the event of an emergency. (Ord. O-10-406 § 1).

2.75.060 Public works projects.

A. General Provisions. See MVMC 2.75.030 for the definition of “public work.”

1. Pursuant to RCW 35.23.352, 35A.40.210, and 35.22.620:

a. As limited by subsection (A)(1)(b) of this section, the City may have public works performed by City employees in any annual or biennial budget period equal to a dollar value not exceeding 10 percent of the public works construction budget, including any amount in a supplemental public works construction budget, over the budget period. The amount of public works that the City has a county perform for it under RCW 35.77.020 shall be included within this 10 percent limitation. Whenever the City has had public works performed in any budget period up to the maximum permitted amount for that budget period, all remaining public works within that budget period shall be done by contract pursuant to public notice and call for competitive bids.

b. City employees may be used for any multiple craft or trade project that does not cost more than $90,000, and on any single craft or trade project that does not cost more than $45,000, or when the public works project is street signalization or street lighting. Whenever the cost of a public work or improvement, including materials, supplies and equipment, will exceed these amounts, the same shall be done by contract. In determining the cost for a public works project, applicable materials, supplies, equipment, labor and sales tax must be included. A public works project is a complete project. The restrictions in this section do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project.

2. The small works roster process in subsection (B) of this section shall be utilized for projects with a cost exceeding the dollar thresholds as provided in this subsection (A), up to a maximum price of $300,000.

3. Projects with a cost in excess of the maximum dollar threshold of $300,000 as provided in RCW 39.04.155, as written or hereafter amended, require a formal competitive bid process. See “formal competitive bid” in MVMC 2.75.030.

4. Bond Requirement. Consistent with Chapter 39.08 RCW, whenever the City of Maple Valley shall contract with any person or corporation to do any work for the City, a good and sufficient bond shall be required from such person or corporation, and with a surety, as surety, conditioned that such person or persons shall faithfully perform all the provisions of such contract and pay all laborers, mechanics, and subcontractors and material suppliers, and all persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, which bond shall be filed with the City Clerk, and any person or persons performing such services or furnishing such material to any subcontractor shall have the same right under the provisions of such bond as if such work, services, or material was furnished to the original contractor; provided, however, that on contracts of $35,000 or less, at the option of the contractor the City may, in lieu of the bond, retain 50 percent of the contract amount for a period of 30 days after date of final acceptance, or until receipt of all necessary releases from the Department of Revenue and the Department of Labor and Industries and settlement of any liens filed under Chapter 60.28 RCW, whichever is later; provided further, that for contracts of $100,000 or less, the City may accept a full payment and performance bond from an individual surety or sureties; and provided further, that the surety must agree to be bound by the laws of the State of Washington and subjected to jurisdiction of the State of Washington.

a. The bond required by the preceding subsection shall be in an amount equal to the full contract price agreed to be paid for such work or improvement, and shall be to the City of Maple Valley; provided, the same shall not be for a less amount than 25 percent of the contract price of any such improvement, and may designate that the same shall be payable to the City and all persons mentioned in the preceding subsection shall have a right of action in his, her, or their own name or names on such bond for work done by such laborers or mechanics, and for materials furnished or provisions and goods supplied and furnished in the prosecution of such work, or the making of such improvements; provided, that such persons shall not have any right of action on such bond for any sum whatever, unless within 30 days from and after the completion of the contract with an acceptance of the work by the affirmative action of the City Council, the laborer, mechanic or subcontractor, or material supplier, or person claiming to have supplied such materials, provisions or goods for the prosecution of such work, or the making of such improvement, shall present to and file with the City Clerk a notice in writing in substance as set forth in RCW 39.08.030(1), as written or hereafter amended. Such notice shall be signed by the person or corporation making the claim or giving the notice, and said notice, after being presented and filed, shall be a public record open to inspection by any person, and in any suit or action brought against such surety or sureties by any such person or corporation to recover for any of the items hereinbefore specified, the claimant shall be entitled to recover in addition to all other costs, attorney’s fees in such sum as the court shall adjudge reasonable; provided, however, that no attorney’s fees shall be allowed in any suit or action brought or instituted before the expiration of 30 days following the date of filing of the notice hereinbefore mentioned; provided further, that the City may avail itself of the provisions of RCW 39.08.010 through 39.08.030, notwithstanding any charter provisions in conflict herewith; and provided further, that the City may impose any other or further conditions and obligations in such bond as may be deemed necessary for its proper protection in the fulfillment of the terms of the contract secured thereby, and not in conflict herewith.

b. Every person, firm, or corporation furnishing materials, supplies, or provisions to be used in the construction, performance, carrying on, prosecution, or doing of any work for the City shall, not later than 10 days after the date of the first delivery of such materials, supplies, or provisions to any subcontractor or agent of any person, firm, or corporation having a subcontract for the construction, performance, carrying on, prosecution, or doing of such work, deliver or mail to the contractor a notice in writing stating in substance and effect that such person, firm, or corporation has commenced to deliver materials, supplies, or provisions for use thereon, with the name of the subcontractor or agent ordering or to whom the same is furnished and that such contractor and his or her bond will be held for the payment of the same, and no suit or action shall be maintained in any court against the contractor or his or her bond to recover for such material, supplies, or provisions or any part thereof unless the provisions of this section have been complied with.

B. Small Works Roster. There is established for the City of Maple Valley a small works roster process for public works projects with an estimated value threshold as provided under RCW 39.04.155, as written or hereafter amended (see threshold amounts in subsection (B)(1) of this section). The City Council, in Resolution R-08-628, as amended by R-09-698, has authorized the use of the Municipal Research Service Center (MRSC) of Washington electronic database for small works and consulting services.

1. Projects with a cost up to the maximum threshold of $300,000, including sales tax, shall use the small works roster process.

C. Limited Public Works. The City may use the limited public works process, as defined in MVMC 2.75.030, to award public works projects as provided under RCW 39.04.155, as written or hereafter amended. The limited public works process is set forth in Resolution R-08-628, as amended by R-09-698, or as may hereafter be amended. This procedure may only be utilized for projects with dollar amounts less than $35,000, including sales tax.

D. Formal Competitive Bid. For public works not using a small works roster or limited public works process, the formal competitive bid process shall be used. All public works in excess of $300,000 must utilize the formal competitive bid process.

E. Bid Bond, Bid Deposit, Noncollusion Affidavit, and Retainage for Public Works Improvement Projects.

1. Bid Bond/Bid Deposit. Whenever a formal competitive bid is sought, the bidder must make a deposit in the form of a certified check or bid bond in an amount not less than five percent of the total bid, which percentage shall be specified in the call for bids. As part of any bid submitted, the bidder shall be required to warrant that the bid is a genuine bid, and that he/she has not entered into collusion with any other bidder or any other person. These requirements will be specified in the call for bids. See subsection (E)(2) of this section.

2. Noncollusion Affidavit. All public works contractors shall furnish a signed and notarized noncollusion affidavit on a form approved by the City Attorney.

3. The provisions of Chapter 60.28 RCW shall apply to all public works contracts.

F. Contract Contingencies and Change Orders. A provisionary dollar amount shall be held in reserve to offset unforeseen costs incurred under a public works contract (“contingency”). The contingency shall be allocated to all approved public works projects at the time of bid award by the City Council.

1. Amount of Contingency. If the bid award is equal to or less than $300,000, the contingency amount shall be a minimum of 10 percent and no greater than 20 percent. If the bid award is greater than $300,000 the contingency amount shall be a minimum of 10 percent and no greater than 15 percent.

2. The City Manager or his/her designee shall execute change orders for public works projects wherein the change order is within the contingency amount. If a change order would exceed the contingency amount, the City Council shall approve the change order.

G. Project Manager Responsibilities. The designated project manager for the public works project shall be responsible for monitoring the contractor’s work under the scope of work and according to the bid specifications, and for monitoring the budget expenditures for the project. The project manager shall be responsible for project closeout according to Resolution R-09-720, as written or hereafter amended, and according to any applicable administrative orders. (Ord. O-12-511 § 1; Ord. O-10-406 § 1).

2.75.070 Services contracts.

A. Contract Amount. The cost of services must be inclusive of any required sales tax and related expenses, such as mileage, and other reimbursables.

B. Contract Required. All services performed on behalf of the City require that the City enter into a contract for that service, with the exception of temporary employment agency services, auto repair, title reports, printing and messenger/process services, and other similar, one-time limited services. For questions on the type of service that does not require a services contract, contact the City Attorney.

C. On-Call Service Contracts. On-call service contracts will be procured with the process identified in subsection (D) of this section.

D. Architectural, Engineering, Landscape Architectural and Land Survey.

1. Architectural, engineering, landscape architectural, and land survey contract procedures are set forth in Chapter 39.80 RCW, as written or hereafter amended, and those procedures shall be followed for all contracts for these services. The City representative is to develop a written scope of the project and any criteria to be used to select the service provider and then select a qualified contractor from the MRSC Consultant Roster for purposes of attempting to negotiate a contract. If the City representative does not choose to use the MRSC roster, then a request for qualifications process must be followed.

2. Professional and nonprofessional services (excluding architectural, engineering, landscape architectural, and land survey services) will be procured using the MRSC Consultant Roster. If the City representative does not choose to use the MRSC Consultant Roster, then a request for proposal process must be followed. (Ord. O-10-406 § 1).

2.75.080 Contracts in the event of an emergency.

A. Competitive bidding is not required when an emergency exists, pursuant to RCW 39.04.280, as written or hereafter amended; however, in making emergency purchases, an effort will be made to include the level of competition that is practical under the circumstances. An “emergency” is defined in RCW 39.04.280(3) and means unforeseen circumstances beyond the control of the municipality that either:

1. Present a real, immediate threat to the proper performance of essential functions; or

2. Will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

B. When an emergency exists, the City Manager, or his/her designee, in coordination with the Mayor, will proclaim a local emergency, pursuant to the City’s adopted Emergency Operations Plan (EOP). The City Manager’s authority to act on behalf of the City in an emergency is set forth in the EOP. To the extent that the EOP lacks specificity pertaining to contracting and purchasing, these policies will serve to supplement the EOP. If possible, following the proclamation of a local emergency, the City Manager shall seek a resolution from the City Council that will: (1) waive competitive requirements; and (2) award, or authorize the City Manager, or his/her designee, to award on behalf of the City, contracts necessary to address the emergency situation (including, but not limited to, architectural and engineering services). If, due to loss of life or other circumstances that make it impossible to obtain a Council quorum for purposes of obtaining the resolution, the City Manager will forego obtaining a resolution in advance of taking action and will later seek a resolution ratifying his/her actions. (Ord. O-10-406 § 1).