HomeMy WebLinkAbout4934
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ORDINANCE NO. 4934
AN ORDINANCE of the City Council of the City of
Bremerton, Washington, repealing and replacing. Chapter 2.76 of
the Bremerton Municipal Code entitled "Purchasing Procedures"
and Chapter 2.79 entitled "Personal Property Disposal" with a new
Chapter 2.76 entitled "Procurement and Disposal Code" relating to
updated procedures for the purchase of materials, supplies,
equipment or services or the lease or rental of equipment and for
the disposal of property.
WHEREAS, the current provisions of Chapter 2.76 of the Bremerton Municipal
Code relating to purchasing procedures often results in inefficient purchasing of goods and
services such as delays in purchasing and the inability to take advantage of discounted products
and unique purchases; and
WHEREAS, the City Council desires to update the provisions of Chapter 2.76 of
the Bremerton Municipal Code by repealing said chapter in its entirety and replacing it with a
new chapter providing for updated purchasing procedures for more efficient purchasing practices
while at the same time providing for accountability for said purchases; and
WHEREAS, the City Council also desire to update the provisions of Chapter 2.79
of the Bremerton Municipal Code relating to the disposal of property and consolidate these
provisions with the updated purchasing provisions; NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2.76 ofthe Bremerton Municipal Code entitled
"Purchasing Procedures" is hereby repealed in its entirety.
SECTION 2. Chapter 2.79 of the Bremerton Municipal Code entitled "Personal
Property Disposal" is hereby repealed in its entirety.
SECTION 3. There is hereby created a new Chapter 2.76 of the Bremerton
Municipal Code entitled" Procurement and Disposal Code" to read as follows:
CHAPTER 2.76
PROCUREMENT AND DISPOSAL CODE
2.76.010 PURPOSE. It is the pll1-pose of this policy to provide guidelines for the
purchase of goods and services by the City in order to maintain an efficient and accountable
purchasing process. It is also the purpose of this policy to allow for the flexible application of
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Procurement and Disposal Code
these guidelines for more efficient and cost effective purchases where their strict application
would not be in the City's best interest, such as, for example, in those instances where requests
for bids or quotations would not be appropriate due to a sole source supplier or where
negotiations with a particular supplier would be more appropriate due to a specialized need of
the City.
2.76.020 APPLICABILITY. Any contract, written or oral, for the purchase of
materials, supplies, equipment or services or the lease or rental of equipment shall be subject to
the provisions of this chapter; provided that, except for the requirements set forth in Sections
2.76.100 and 2.76.110 below relating to authorization by the mayor and city council, the
limitations contained in this policy do not apply to:
(a) Public works or improvement contracts which shall be entered into pursuant to
RCW 35.22.620 as currently enacted and as hereinafter amended.
(b) Contracts for architectural and engineering services governed pursuant to Chapter
39.80 RCW as currently enacted and as hereinafter amended.
(c) Purchases of materials at auctions conducted by the United States government or
any agency thereof, or by the State of Washington and any of its political subdivisions.
2.76.030 DEFINITIONS.
For the purposes ofthis chapter, the following defInitions will apply:
(a) "Best bid" shall mean a bid that is the best value to and in the best interests of the
city when considering items such as price, available discounts, the product or service purchased
including any alterations or modifications thereto, shipping, time of delivery, warranty and other
terms of purchase, and any other factors relevant to the purchase. Best bid does not necessarily
mean lowest price.
(b) "Bid" shall mean an offer or quotation to provide goods and/or services at a
specifIed price.
(c) "Contract" or "Contract for purchase" shall mean a purchase from a wholesaler,
retailer or dealer, or other similar transaction for the purchase of goods and services.
(d) "Director" shall mean director of the department for which the contract for
purchase is made, authorized purchasing agent, or his or her designee.
(e) "Director of Financial Services" shall mean director of the Department of
Financial Services, or his or her designee.
(f) "Emergency" shall mean any situation where public health, safety and welfare are
endangered.
(g) "Purchase of goods and services" shall mean a contract to supply materials,
supplies, equipment, the lease or rental of equipment, and/or the performance of work or labor.
(h) "Written bid" or "Written request for bid" shall include e-mail and facsimile
transmittals.
2.76.040 REQUESTS FOR BIDS AND BID LISTS. Requests for bids required
in this section shall be solicited for the purpose of establishing comparable and competitive bid
pricing and the best price for the proposed purchase. Bids received in response to such requests
for bids sh~ 11 be doc1L11lented and subl11itted, ::Ilong with any other relevant material, to the
approving authority as set forth in Section 2.76.060. Bids for purchases shall be obtained as
follows:
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Procurement and Disposal Code
(a) Purchases of $10.000 or less. Any contract, for which the estimated cost to
purchase goods or services, is ten thousand dollars ($10,000.00) or less shall be entered into
pursuant to such terms and conditions as may be authorized by the Director. Purchases under this
subsection are not required to be entered into pursuant to solicitation or requests for bids and
may be entered into through direct negotiations.
(b) Purchases over $10.000 but not exceeding $25.000. If it appears that the
estimated cost of a contract to purchase goods or services, other than professional and consulting
services, will be over ten thousand dollars ($10,000.00) but not exceeding twenty-five thousand
dollars ($25,000.00), the Director may contract as follows:
(1) Telephone and/or written bids. Solicit, obtain and document telephone
and/or written comparable bids for each purchase from at least three (3) sources. If less than
three (3) vendors are available for bids after reasonable attempts, then such shall be documented
and bids may be obtained from the available sources,
(2) Bid lists. For regularly-made purchases, a list of comparable bids may be
maintained and updated periodically and purchases made from that list without soliciting bids for
each such purchase,
(3) Written request for bids. Request in writing and obtain from at least three
(3) sources, written comparable bids for each purchase. Requests for bid should be in writing and
contain appropriate specifIcations and terms of purchase as may be applicable. If less than three
(3) vendors are available for bid after reasonable attempts, then such shall be documented and
bids may be obtained from the available sources, (or)
(4) Advertised request for bids. Publish notice calling for bids in a newspaper
of general circulation most likely to bring responsive bids at least ten (10) days before entering
into that contract. The notice shall generally state the nature of the contemplated purchase and
the description or specifIcations thereof, and it shall require that the bids be filed with the city
clerk or other designated office of the city within the time specified therein.
(c) Purchases over $25.000. If it appears that the estimated cost of a contract to
purchase goods or services, other than professional and consulting services, will be over twenty-
five thousand dollars ($25,000.00), the Director may contract for purchase as follows:
(1) Written request for bids pursuant to subsection (b)(3) above, (or)
(2) Advertised request for bids pursuant to subsection (b)( 4) above.
(d) Award of contract on best bid. Subject to the authorization requirements set forth
in Section 2.76.100, the Director may:
(1) A ward a contract for purchase to the best bid as defined in Section
2.76.030(a) in response to a solicitation or request for bid pursuant to this section,
(2) Reject any and all bids, and/or
(3) Enter into direct negotiations with a bidder to modify the product or
service to be purchased or to obtain a more favorable price or terms for the City.
If an award of a contract for goods and services is made to a supplier who is not
the lowest bidder, then the reason for awarding the contract to another supplier shall be
documented (delivery time, warranty, the bid did not meet the product or service requirements of
the City, or specific product line preferred for uniform equipment fleet etc.).
(e) Local preference purchase for goods. When reviewing bids for purchase, all
tp;ngs being eqn~l when consideri..ng factors such as product qmtlity, delivery, wa...rra...nty or
service provided, there is a preference to purchase from a local supplier. A local supplier is a
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Procurement and Disposal Code
supplier having an office or facility located in Kitsap County and be licensed to and doing
business in the county.
(f) Contracts with other public entities. In lieu of the requirements for requests for
bids pursuant to this section, the City may, pursuant to an interlocal agreement with another
public entity which has entered into a contract with a supplier pursuant to an advertised request
for bid, contract with said supplier on similar terms for the purchase of materials, supplies or
equipment.
2.76.050 REQUESTS FOR PROPOSALS. In lieu ofthe requirements for
requests for bids pursuant to Section 2.76.040, requests for proposals may be utilized when
deemed appropriate under such terms and conditions determined suitable to meet the needs and
requirements of the particular purchase.
2.76.060 PROFESSIONAL AND CONSULTANT CONTRACTS. This section
shall apply to professional and/or technical service consultant contracts in which the city enters
into an agreement to purchase consultant services for city government from a corporation, fIrm,
agency, individual, or group of individuals based on their recognized experience and knowledge
within a specialized area of expertise. Contracts for professional and consultant services are not
required to follow the purchasing requirements set forth in Section 2.76.040, but may be entered
into through direct negotiations.
2.76.070 SUPPLY CONTRACTS AND BLANKET PURCHASE ORDERS. In
lieu of requesting bids for each purchase or maintaining bid lists, the city may solicit bids or
proposals for a supply contract for a specific term or issue a blanket purchase order for the
supply of goods, materials, supplies, equipment or services on an as needed basis in those
instances where the specific service or product in a product line or volume of units is
undetermined such as the city's needs and use of office supplies.
2.76.080 DETERMINING COST OF CONTRACT. To determine the cost ofa
contract for the purpose of establishing the appropriate purchasing procedures under this chapter,
when the contract has no defInite term or unit amount such as a supply contract or blanket
purchase order, the amount of each individual purchase shall determine the appropriate
purchasing procedures. Contracts may not be split to avoid the bidding and authorization
requirements set forth in this chapter.
2.76.090 SOLE SOURCE PURCHASES. The requirements set forth in Section
2.76.040 for requests for bids may be waived by a written determination by the Director that
either the materials, supplies, equipment or services are clearly and legitimately limited to a
single source of supply, or that the materials, supplies, equipment or services are subject to
special market conditions, involve special facilities or services, or that a bid would otherwise not
be practicable or in the city's best interests under the circumstances, in which instances the
purchase price may be best established by direct negotiation. The written determination shall also
recite why this situation exists.
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2.76.100 CONTRACT APPROVAL REQUIRED.
(a) Mayor/Director aporoval. Any contract which is twenty-five thousand dollars
($25,000.00) or less intended for the purchase, lease or rental of supplies, material, equipment or
services must be approved by the mayor or director or his or her designee to become effective
and binding upon the city.
(b) Council approval. Any contract which is over twenty-five thousand dollars
($25,000.00) intended for the purchase, lease or rental of supplies, material equipment or
services must be approved by the City Council to become effective and binding upon the city.
(c) Prior Council Consideration. When the council has specifIcally considered and
approved by formal action a particular program or matter in which the amount of the contract
and the contracting parties have been identifIed, such as awards of bids, funding of certain
programs, authorization to purchase or to negotiate for the purpose of a particular item or
service, or other similar program or matter, such consideration and approval shall constitute
council authorization for the purpose of this section.
2.76.110 AMENDMENTS AND CHANGE ORDERS - APPROVAL.
(a) Amendments or change orders to contracts requiring City Council approval under
this chapter may be administratively approved by the Mayor if the changes are:
(1) Within the scope of the project;
(2) Consistent with an initial bid process, if any;
(3) Executed in writing; and
(4) An increase of the contract award amount (CAA) as follows:
Contract Award Percentage Increase in Limits
Amount CAA (the greater of)
Less than $100,000 30% or minimum Min $0
Max $30,000
$100,000 to $500,000 20% or minimum Min $30,000
Max $100,000
Greater than 10% or minimum Min $100,000
$500,000 Max $200,000
(b) The value of all change orders will be aggregated. When any single change order,
or combined change orders on the same project or single purchase exceeds the value limit, the
change must be approved by City Council, except in the following instances:
(1) On service contracts used to accomplish an ongoing City program as
opposed to completing a short term project or purchase, change order rules, including the
aggregate rule, shall be applied on an annual basis.
(2) Where the size of the contract and the exhausting of change order
authority make further change order authorization impractical, the City Council may, upon
reco1rilllendation of the ~v1ayor, extend the aggregate li..mts of subsection (a)( 4) for specific
contracts.
(c) A work change directive may be used to:
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Procurement and Disposal Code
(1) Authorize and direct work that will result in an increase in contract price
within the administrative authority of the Mayor as provided in subsection (a) for specific
contracts. Work change directives that affect the contract price shall be incorporated into a
change order.
(2) Authorize and direct work that will result in an increase in contract price
in excess ofthe administrative authority of the Mayor as provided in subsection (a);
i) where unforeseen conditions necessitate an immediate change to
avoid a contractor's claim against the City for delays, or
ii) due to an emergency as defined in 2.76.030(f) above.
In such circumstances, the work change directive shall be incorporated into a
change order and presented to the City Council at its next regularly scheduled public meeting,
subject to scheduling.
2.76.120 EXCEPTION FOR RECYCLED PRODUCTS. Nothing in the chapter
shall prohibit the city from preferentially purchasing products made from recycled materials or
products that may be recycled or reused.
2.76.130 EMERGENCIES. When any emergency requires the immediate
execution of any contract to purchase, lease or rent as described in this chapter, upon the fmding
of the existence of such an emergency, the mayor shall have the power to make and enter into
such contract without strict compliance with the purchasing requirements set forth in this
chapter. The designated department director shall issue a written basis for the emergency
determination accompanied by a description and/or specifIcation and cost estimate of the
contract at the time of or as soon as practicable after the commencement of the purchase.
2.76.140 CREDIT/PURCHASE CARD USE.
(a) The Director of Financial Services shall implement and maintain the following
system for the distribution, authorization and control of credit/purchase cards issued to or for the
benefIt of the City and used by City officials and employees.
(1) Distribution. Credit cards may be distributed to those City officials and
employees who, in the opinion of the Director of Financial Services, have job responsibilities
that would benefIt or otherwise be facilitated by use of credit/purchase cards.
(2) Authorization and Control. The Director of Financial Services shall
develop specifIc administrative guidelines and accounting controls to ensure the proper usage of
credit/purchase cards and related funds. Credit/purchase cards are to be used when it is in the
best interest of City administrative affairs.
(3) Application. The individual holder, upon prior approval of the Director of
Financial Services, shall use each credit/purchase card in a responsible manner.
(4) Credit Limits. The Director of Financial Services shall set credit/purchase
limits on each card issued subject to fmal approval by the Mayor. Individual purchases shall not
exceed five thousand dollars ($5,000.00) and in no event shall the credit/purchase card limit
exceed ten thousand dollars ($10,000.00) for any individual credit/purchase card account without
pre-approval of the Director of Financial Services.
r'\\ Credit Card Restriction. The follo-wing \vill be considered an unauthorized
\-'J transaction, purchase or use of any City credit/purchase card:
(i) Cash advances;
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Procurement and Disposal Code
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(ii) Payment of invoices or statements;
(iii) Purchases where an open charge account would be utilized;
(iv) Personal purchases of any kind; and/or
(v) Obtaining cash refunds for goods purchased with a City
credit/purchase card.
(6) Disallowed Charges. Disallowed charges or charges not properly
identifIed will be paid by the employee before the charge card/purchase billing is due. Failure to
do so will render the employee personally liable where the City shall have a prior lien against
and a right to withhold any and all funds payable or to become payable to the employee up to the
unpaid amount, plus interest and/or fees at the rate charged by the bank that issued the card.
Employee shall not use the credit/purchase card if any disallowed charges are outstanding.
The act of obtaining a City credit/purchase card does not indicate pre-approval of expenditures.
(7) Return of CreditJPurchase Card. The employee shall return all City
credit/purchase cards at the request of the Director of Financial Services, or upon separation of
employment. Final paycheck will be held until all outstanding City property has been returned.
(b) The Mayor and/or Director of Financial Services are authorized to implement any
additional policies or administrative procedures necessary to implement the provisions of this
section.
2.76.150 PERSONAL PROPERTY DISPOSAL.
(a) Surplus personal property oftwentv-five thousand dollars ($25.000.00) or less in
value. Approval of the City Council is not required for the sale or disposition of any City-owned
surplus personal property with an estimated value of twenty-fIve thousand dollars ($25,000.00)
or less. When such personal property has been certified for disposition by a Director, sale or
disposition shall be made by the Director in accordance with methods described in subsection (c)
below. Items having a nominal value may be disposed of in any reasonable and prudent manner or
the Mayor may donate the item to a specifIc bona fIde charitable organization which is tax exempt
pursuant to Internal Revenue Code Sec. 501 (c )(3).
(b) Surplus personal property over twenty-fIve thousand dollars ($25.000.00) in
value. Disposition of surplus personal property with an estimated value over twenty-five
thousand dollars ($25,000.00) must be approved by the City Council. The City Council may:
(1) Approve the disposition;
(2) Approve the disposition with conditions; or
(3) Disapprove the proposed disposition, whereupon it shall give the Director
directions for further action.
(c) Methods of disposition. Permissible methods of disposition of surplus personal
property include, but are not limited to:
(1) Public auction;
(2) Solicitation of bids;
(3) Negotiated sale for approximate fair market value; or
(4) Transfer to another agency of government pursuant to subsection (d)( 4) below.
(d) StatutOry conditions/exceptions. Certain provisions of the Revised Code of
Washington impose special conditions or procedures for the disposition of municipal personal
property. When required, the Director shall comply with those laws, and when authorized the
Director may utilize said laws treating them as limited exceptions to the extent inconsistent with
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the requirements of this chapter. These laws include, but are not limited to, the following as
currently enacted and hereinafter amended:
(1) RCW 35.94 - Sale or Lease of Municipal Utilities;
(2) RCW 63.32 - Unclaimed Property in Hands of City Police;
(3) RCW 35.21.088 - Equipment rental fund;
(4) RCW 39.33 - Intergovernmental Disposition of Property;
(5) RCW 39.34 - Interlocal Cooperation Act;
(6) RCW 63.21 - Lost and Found Property; and
(7) RCW 35.21.730 through 755 - Transfers to public corporations; and
(8) RCW 46.55.230 and 240 - Disposition of junk vehicles.
SECTION 4. Severability. If anyone or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SECTION 5. Effective Date. This ordinance shall take effect and be in force ten
(10) days from and after its passage, approval and publication as provided by law.
PASSED by the City Council the 16th day of March, 2005
Approved this C::;":I Ad.. day of ~.A~.J ./
AP AS TO FORM:
TON, ity Clerk GER A. LUBOVICH,
PUBLISHED 1:hecl./d, day of ~' ~ ' 2005
, 2005
EFFECTIVE the diMi day of l12
ORDINANCE NO. J.1':;\~Lj
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Procurement and Disposal Code
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. (AFFIDAVIT OF PUBLICATION
No. Ad # 100145204
STATE OF WASHINGTON
COUNTY OF KITSAP
I, Dina Christensen, being first duly sworn on oath, deposes and says: That she is now, and at all times
embraced in the publication herein mentioned was the principal clerk of the printers and publishers of THE
KITSAP SUN; that said newspaper has been approved as a legal newspaper by order of the Superior Court
of the County of Kitsap, in which County it is published and is now and has been for more than six months
prior to the date of the publication hereinafter referred to, published in the English language continually as
a daily newspaper in Bremerton, Kitsap County , Washington, and is now and during all of said time, was
printed in an office maintained in the aforesaid place of publication of said newspaper March 21st, 2005,
and that such newspaper was regularly distributed to its subscribers during all of said period. That the full
amount of the fee chargee). for the foregoing publication j the sum of $32.38 which amount has not been
paid.
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Subscri!ed an<WWotna0rnef~~~e this day of March 28th, 2005.
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ORDINANCE 49j~ III \
AN ORDINANCE of the City Council of the City of Bremerton, Washington, repealing and replacing
Chapter 2.76 of the Bremerton Municipal Code entitled "Purchasing Procedures" and Chapter 2.79 entitled
"Personal Property Disposal" with a new Chapter 2.76 entitled "Procurement and Disposal Code" relating
to updated procedures for the purchase of materials, supplies, equipment or services or the lease or rental of
equipment and for the disposal ofproperty.-
PASSED by the City Council the 16th day of March, 2005.-
The full text of this ordinance is available from the City Clerk's Office, 345 6th Street, Suite 600,
Bremerton, WA 98337.-
March 21, 2005"#100145204-