Chapter 2.112
CONTRACT APPROVAL AUTHORIZATION

Sections:

2.112.010    Contract approval authorization.

2.112.015    Limited public works process contracts.

2.112.020    Emergency contracts.

2.112.030    Purchasing policy.

2.112.040    Acceptance of public works projects.

2.112.010 Contract approval authorization.

A. The city council authorizes the mayor, city administrator and department directors to enter into and execute on behalf of the city certain types of contracts without individual approval of each contract by the city council. This authority is granted only if the contract is consistent with the approved biennial budget for the city, and the city’s liability under the contract does not exceed available fund balances. The contract types authorized by the council include:

Contract Type

Maximum Annual Contract Amount*

Mayor/City Administrator – Jointly

Department Director

Settlement (claims/suits)

$15,000

Yes

No

Severance agreement

$15,000

Yes

No

Capital equipment purchase

$300,000

Yes

No

Real property acquisition

$15,000

Yes

No

Routine agreements

$100,000

Yes

Yes – Up to $15,000

Public works contracts

$300,000**

Yes

Yes – Up to $40,000 (single craft)

Up to $65,000 (multiple craft)

Goods, services, supplies, materials or equipment

$100,000

Yes

Yes – Up to $15,000

Professional service agreements

$100,000

Yes

Yes – Up to $15,000

Lease agreements for materials, supplies or equipment

$15,000

Yes

Yes

Contracts which carry out or implement a provision of this code or established city policy, e.g., maintenance or performance bonds for plat improvements

Yes

No

Amendments*** – Service contracts

Up to $75,000 or 5% of the original contract, whichever is less

Yes

Yes – Up to 5% of the original contract or an accumulated total of $35,000, whichever is less

Amendments*** – Public works contracts

Up to $75,000 or 5% of the original contract, whichever is less

Yes

Yes – Up to 5% of the original contract or an accumulated total of $35,000, whichever is less

* Including sales or use tax – if applicable.

** May extend over a multi-year period.

*** The amount of a contract includes all amendments.

1. Contracts not consistent with the above table, or are to be paid with unappropriated funds, must be preapproved by the city council.

2. The breaking down of any purchase or contract into units or phases for the purpose of avoiding the maximum dollar amounts is prohibited.

B. All contracts presented for signature by the mayor and city administrator shall be signed by the city attorney as to form and legality.

C. The mayor or city administrator in his or her discretion may present any contract to the city council for prior approval, even if the contract is allowed to be approved without prior city council approval.

D. Interlocal agreements shall be presented to the city council for prior approval.

E. Other than the mayor, no elected or appointed official has the authority to purchase or enter into contracts on behalf of the city. For the purposes of this section, a purchase does not include approved travel, training or per diem reimbursements consistent with the personnel policies.

F. For the purpose of this chapter, “contract” means any agreement creating a legal relationship between the city and another person or entity, or any amendment thereto. (Ord. 2630 § 1 (part), 2018: Ord. 2559 § 1 (part), 2016)

2.112.015 Limited public works process contracts.

A. For projects under $35,000, RCW 39.04.155(3) allows a limited process of soliciting bids from at least three contractors on the roster.

B. Bid guarantees are optional. The contract must be awarded to the lowest responsible bidder.

C. Retainage and performance and payment bonds may be waived, but limited public works projects are still subject to normal prevailing wage requirements. (Ord. 2630 § 1 (part), 2018: Ord. 2597 § 1, 2017)

2.112.020 Emergency contracts.

A. The city council authorizes the mayor or designee to enter into emergency contracts for purchase of materials, supplies, equipment or services using unappropriated funds in emergency situations.

B. “Emergency” means a set of unforeseen circumstances that either:

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

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

3. For public works projects, may result in a substantial loss to the city if the contract is not immediately entered into.

C. Emergency procurements shall be made with such competition as is practical under the circumstances.

D. A written determination of the basis for the emergency and for the selection of the particular contractor/vendor shall be included in the contract file.

E. A record of each emergency procurement shall be made and shall set forth the contract’s name, the amount and type of the contract, and listing of the item(s) procured under the contract, which shall be reported to the council at the next subsequent meeting.

F. If a contract is awarded without competitive bidding due to a declared emergency, the city council must adopt a resolution certifying the emergency situation existed no later than two weeks following the award of the contract. (Ord. 2630 § 1 (part), 2018: Ord. 2559 § 1 (part), 2016)

2.112.030 Purchasing policy.

The mayor and city administrator are authorized to develop internal purchasing policies that are consistent with this chapter and state competitive bidding laws. (Ord. 2630 § 1 (part), 2018: Ord. 2559 § 1 (part), 2016)

2.112.040 Acceptance of public works projects.

For public works projects under $40,000 (single craft) or $65,000 (multiple craft), the acceptance date shall be the completion date (as set forth by the APWA Standard Specifications). For public works projects with a total project cost over $40,000 (single craft) or $65,000 (multiple craft), the city administrator is authorized to accept as complete the public works and improvements performed under any contract awarded hereunder after determining that such work has been satisfactorily completed in accordance with the contract terms thereof. (Ord. 2630 § 1 (part), 2018)