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HomeMy WebLinkAbout3264ORDINANCE NO. 3264 AN ORDINANCE of the City of Port Angeles, Washington, amending the procedure to be followed in approving purchase orders and signing checks, and amending Ordinance No. 2628 and Chapter 3.05 of the Port Angeles Municipal Code, and consolidating various resolutions regarding purchasing. WHEREAS, the current Purchasing Ordinance was last updated in 1991 and is outdated and in need of revision, WHEREAS, the City wishes to update and incorporate into a uniform purchasing policy several policies adopted previously by resolution; NOW, THEREFORE, THE CITY COUNCIL OF PORT ANGELES, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Ordinance 2628 and Chapter 3.05 PAMC are hereby amended to read as follows: PURCHASEING POLICIES ORDER AND PROCEDURES AND CREDIT CARD Sections: 3.05.010 Review and Approval of Purchase Orders. 3.05.020 Preparation of Claims. 3.05.030 Validity of Checks. 3.05.040 Approval of Payment of Claims. 3.05.050 Lowest Responsible Bidder 3.05.060 Authorit to Enter into Contracts Leases or Rental A reements. 3.05.070 Small Purchase Contracts. 3.05.080 Small Works Roster. 3.05.090 Limited Public Works Process. 3.05.100 Public Inspection of Purchase, Small Works Roster, or Limited Public Works Awards. 3.05.110 Change Orders on Construction Contracts 3.05.056120 Definition of Credit Card. 3.05.060130 Issuance, Use and Control of Credit Cards. -1- • • 3.05.010 Review and Approval of Purchase Orders. It shall be the responsibility of each Department Head of the City to review and approve or disapprove all purchase orders for claims against his or her Department. It shall be the responsibility of the Finance Director o-f to review and approve or disapprove all purchase orders in excess of $5,000.00 in accordancc with the City's purchasing policy. All Maclrcro i • and .All purchase orders in excess of $15,000 shall be approved by the City Manager or designee. All purchase orders in excess of $25,000 shall be approved by the City Council. 3.05.020 Preparation of Claims. . - . - Id - � . . 1 i .1 i .: • 11 •• • q .• ■ • . . • • - - . � .1 1 no claim shall be paid without suLirtenhcatro n. All claims for payment shall be submitted to the Finance Department with documentation certifying that (1) the materials have been furnished, the services rendered, or the labor performed as described, and (2) the claim is a just, due and an unpaid obligation against the City. 3.05.030 Duman Validity of Checks. To be valid, all checks in payment of claims must be signed by both the City Manager and the Finance Director. 3.05.040 Approval of Payment of Claims. It shall be the duty of the Finance Director of to present not less frequently than once each month a list showing all claims paid and the date of such payment for approval of the City Council and to enable the City Council to make inquiry on any item appearing thereon. Upon the satisfaction of such inquiry, if any, the City Council shall by motion approve the report of claims paid as hcrcin providcd and order the same filed as a permanent record. 3.05.050 - Lowest Res. onsible Bidder. When the Cit receives bids or . uotes and it is necessa to determine the lowest res onsible bidder the followin shall a 1 A. into consideration the For a contract for .urchase of su ..lies material or e•ui.ment the Cit ma take ualit of the articles ro.osed to be su lied their conformi with the s.ecifications the .0 .oses for which re uired and the times of delive B. Whenever there is reason to believe that the lowest acceptable bid is not the best price obtainable, all bids may be rejected and new bids may be obtained or direct negotiations may be entered into to achieve the best possible price. C. In determining "lowest res onsible bidder" in addition to .rice the followin elements shall be given consideration: -2- • • 1. the ability, capacity, and skill of the bidder to perform the contract; 2. the character, integrity, reputation, judgment, experience, and efficiency of the bidder; 3. whether the bidder can perform the contract within the time specified; 4. the quality of performance of previous contracts; 5. the previous and existing compliance by the bidder with laws relating to the contract; 6. such other information as may be secured having a bearing on the decision to award the contract; 7. tax revenue that the City would receive from purchasing the supplies, materials, or equipment from a supplier located within the City's boundaries, so that the purchase contract would be awarded to the lowest bidder after such tax revenue has been considered. The tax revenues that the City may consider include sales taxes that the City imposes upon the sale of such supplies, materials, or equipment, from the supplier to the City, provided that if the City considers such tax revenues that it would receive from the imposition of taxes upon a supplier located within its boundaries, the City shall also consider tax revenues it would receive from taxes it imposes upon a supplier located outside its boundaries; 8. whether the products are made from recycled materials or may be recycled or reused. D. Immediately after the award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by written, telephonic, or electronic request. 3.05.060 - Authority to Enter into Contracts, Leases or Rental Agreements. The City Manager or his designee is hereby authorized to enter into contracts and leases or rental agreements provided that the following conditions are met: A. The contract does not obligate the City to expend in excess of Twenty Five Thousand Dollars ($25,000). B. The .articular ex.enditure of Cit funds has been a•.roved in the Cit Budget as approved by the City Council. C. The lease or rental a•reement is for a •eriod that does not exceed one ear and involves a total rental amount or value that does not exceed $25,000. As deemed appropriate by the Cit Manager the Cit Council's Real Estate Committee ma be consulted •riorto executin any such lease or rental agreement. D. The Cit Mana er or his desi nee shall noti the Council in writin of contracts entered into pursuant to this section. -3- • • 3.05.070 - Small Purchase Contracts. A. Whenever the reasonably anticipated purchase price of supplies, material and equipment, except for public work or improvement, is more than $7,500 but less than $15,000, advertisement and formal sealed bidding for their purchase may be dispensed with if the uniform procedure provided in RCW 39.04.190 and in this section is followed. At least twice per year, the City Clerk shall publish in a newspaper of general circulation within the City a notice stating the existence of vendor lists and soliciting the names of vendors for the lists. C. Each City department that desires to award contracts for the purchase of supplies, material or equipment pursuant to this process shall do the following: 1. Obtain at least three written or telephone quotations from different vendors of the supplies, material or equipment to be purchased. 2 Transmit the quotes to the City Manager or designee, accompanied by a recommendation for award of the purchase contract to one of the vendors, who shall be the lowest responsible bidder as defined in RCW 43.19.1911 and in section 050 of this Cha.ter. 3. If less than three quotes are obtainable due to factors beyond the control of the de s artment the recommendation to the Cit Mana er or deli nee shall be accom s anied by an explanation of the reasons for the lower number of quotes. 3.05.080 - Small Works Roster. A. In lieu of the formal bidding procedures for public works projects as set forth in RCW 35.23.352(1), the City may use the small works roster process provided in RCW 39.04.155 and in this section to award public works contracts with an estimated value of $200,000 or less. B. The City may create a single general small works roster or may create small works rosters for different categories of anticipated work. The small works roster or rosters shall be created as follows: 1. At least once a year the City Clerk shall publish in a newspaper of general circulation within the City a notice stating the existence of the small works roster or rosters and soliciting the names of contractors for such roster or rosters. In addition responsible contractors shall be added to an a s ro . riate roster or rosters at an _ time the submit a written re e uest and necessary records. 2. The small works roster or rosters shall consist of all responsible contractors who have re . uested to be on the list and are s ro s erl licensed or re istered to . erform such work in this state. - 4 - • • C. Each City department that desires to use the small works roster process without advertising for bids shall do the following: 1. Invite written or telephone quotations from all contractors on the general small works roster, or a specific small works roster for the appropriate category of work, to assure that a competitive price is established and to award contracts to the lowest responsible bidder as defined in RCW 43.19.1911 and section 050 of this Chapter. 2. As an alternative, quotations may be invited from at least five contractors on the appropriate small works roster in a manner that will equitably distribute the opportunity among the contractors on the appropriate roster and that will not favor certain contractors over others. 3. If the estimated cost of the work is from $100,000 to $200,000 and the City department chooses to solicit bids from less than all of the appropriate contractors on the a . • ro . riate small works roster then the Cit must not the remainin contractors that • uotations are being sought. At the City' s sole option, such notice may be by (a) publishing notice in a legal newspaper in general circulation in the City; (b) mailing a notice to those contractors; or (c) sending notice to those contractors by facsimile or other electronic means. 4. 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. 5. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by written, telephonic, or electronic request. 3.05.090 - Limited Public Works Process. A. In lieu of the small works roster process set forth in Section 080 of this Chapter, the City may award a contract for work, construction, alteration, repair, or improvement project estimated to cost less than $35,000 using the limited public works process provided in RCW 39.04.155 and in this Section. B. For limited public works projects, the City shall solicit electronic or written quotations from a minimum of three contractors from the appropriate small works roster and shall award the contract to the lowest responsible bidder as defined under RCW 43.19.1911 and in Section 050 of this Chapter. After an award is made, the quotations shall be open to public inspection and available by written, telephonic, or electronic request. C. The City shall attempt to distribute opportunities for limited public works •ro'ects equitably among contractors willing to perform in the City. D. For limited public works projects, the City may waive the payment and • erformance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW, thereby assuming the liability for the contractor's non - payment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed under Title 82 RCW that -5- • • may be due from the contractor for the limited public works project. However, the City shall have the right of recovery against the contractor for any payments made on the contractor's behalf. 3.05.100 - Public Inspection of Purchase, Small Works Roster, or Limited Public Works Awards. A. Each department that makes an award for a purchase contract under the informal bidding process in Section 070 of this Chapter or a public works project award under the small works roster process in Section 080 of this Chapter or the limited public works process in Section 090 of this Chapter shall provide the City Clerk with the name of the contractor or vendor awarded the contract, the amount of the contract, a brief description of the type of work performed or items purchased under the contract, and the date it was awarded. B. The City Clerk shall post a list of the contracts awarded under Section 070 of this Chapter at least once every two months. The City Clerk shall make available a list of the contracts awarded under Section 080 of this Chapter at least once every year. The City Clerk shall make available a list of the contracts awarded under Section 090 of this Chapter, which list shall include all contracts awarded during the previous 24 months under the limited public works process. The lists shall contain the name of the contractor or vendor awarded the contract, the amount of the contract, a brief description of the type of work performed or items purchased under the contract, and the date the contract was awarded. The lists shall also state the location where the bid • uotations for these contracts are available for • ublic ins . ection. The • uotations shall be available by written, telephonic, or electronic request. 3.05.110 - Change Orders on Construction Contracts A. In accordance with the terms and conditions of this section, the City Manager and the Director of Public Works and Utilities are hereby authorized to approve and sign construction contract chan ' e orders on construction contracts, if the chan ' e order does not substantiall change the sco •e of the project and if the total contract amount as ad'usted b the chan, e order is within the amount budgeted for the project. B. If the total amount of the change orders for a project is $5,000 or less, the Director of Public Works and Utilities may approve the change orders. C. If the amount of the change order is between $5,000 and $100,000, it must also be approved and signed by the City Manager provided that 1. The total of all change orders for a project costing less than $100,000 shall not exceed $15,000. 2. The total of all chan ' e orders for a project costing $100,000 or more ma be issued for 15% of the original contract amount, not to exceed $100,000. -6- • D. If the amount of the change order is in excess of the City Manager's authority, it must be approved by the City Council. E. When the City Manager or Director of Public Works and Utilities approves change orders according to the conditions stated in paragraphs A and B above, he shall forward the change order to the City Council for its information within thirty (30) days of the signing of the change order. 3.05.950 120 Definition of Credit Card. As used in this Chapter, "credit card" means a card or device issued under an arrangement pursuant to which the issuer gives to a cardholder the privilege of obtaining credit from the issuer. 3.05.060 130 Issuance, Use and Control of Credit Cards. The City Council hereby adopts the following system for the issuance, use and control of credit cards by City officials and employees: A. The Finance Department shall implement the following system for the distribution, authorization, control, credit limits and payment of bills related to the use of credit cards by City officials and employees: 1. Distribution. Credit cards will be distributed to those City officials and employees who have job responsibilities which would be facilitated by the use of a credit card and the credit card use would benefit the City. This shall include the City Council, City Manager, Department Heads, Division Managers, and other officials and employees as determined by the City Manager. 2. Authorization and Control. The Finance Department shall develop the implementation guidelines and accounting controls to ensure the proper usage of credit cards and credit card funds. 3. Credit Limits. The Finance Department shall set credit limits on each credit card issued. The credit limit shall not exceed $2,500 without written approval of the City Manager. 4. Payment of Bills. The Finance Department shall establish and implement a written procedure for the payment of all credit card bills. 5. Unauthorized Charges. No employee shall use the City- issued credit card for non -City business use. Any employee who violates this policy by using a City- issued credit card for non -City business shall be subject to disciplinary action and shall be billed for all charges on the credit card. The City Manager or his/her designee is authorized and directed to make payroll deductions to recover any unauthorized charges. 6. Cash Advances. Cash advances on credit cards are prohibited. B. The Finance Department is authorized to adopt any additional procedures or policies necessary to implement the provisions of this section. -7- • • Section 2. Ordinance 2480 and Chapter 2.06, City Meeting and Customer Service Expenses, of the Port Angeles Municipal Code are hereby amended to read as follows: 2.06.010 Purpose. The purpose of this Chapter is to establish a policy for the payment of necessary expenses for meals and refreshments at certain meetings of City government and for refreshments in the lobby of City Hall. Payment of such expenses is necessary and appropriate due to the increasing necessity to conduct important City business at City meetings that have to be scheduled at normal meal times or for an extended duration, particularly during late evening hours, and in order to encourage citizens transacting business at City Hall to review important information about the permitting process and other aspects of City government, and to facilitate positive communication, particularly when citizens have to wait for service. 2.06.020 Policy Established. It shall be City policy to pay expenses for meals or refreshments, which shall in no event include alcoholic beverages, as may be specifically approved from time to time by the City Council or City Manager, in the following circumstances: A. When City meetings have to be scheduled by the City Council at normal meal times so that City officials and employees will be precluded from having meals on their own time, meals may be provided for such officials and employees as approved by the City Council for payment by the City Manager or his designee, provided that the cost of such meals shall not exceed the amount specified in the Personnel Policies and Procedures; and B. When City meetings will extend over a number of hours and refreshments will assist participants' mental and physical faculties to function optimally and thereby facilitate meaningful participation in, and contribution to, the process of open government, refreshments may be provided for such participants and paid for by the City Manager or his designee, provided that the cost of such refreshments shall not exceed $25 per meeting. C. In the lobby of City Hall at a location which will encourage citizens transacting business, such as obtaining permits or paying utility bills, to review important information about the permitting process and other aspects of City government, provided that the cost of such refreshments shall not exceed $25 per week. D. The City Manager is hereby authorized to spend City funds at periodic functions, such as award ceremonies em i to ee reco nition events and related events involvin all levels and departments of City government, and at special functions, such as dedication, ceremonial, and special recognition events, involving the general •ublic and all levels of Cit government . rovided that such Cit funds have been bud eted and do not exceed 3 500 er function. Section 3 - Repealer. Resolutions 4 -91, 28 -95, 6 -96, 7 -99, 7 -01, and 1 -02 are hereby repealed. - 8 - • • Section 4 - Severability. If any provisions of this Ordinance or its applications to any person or circumstances is held to be invalid, the remainder of the Ordinance or application of the provisions of the Ordinance to other persons or circumstances is not affected. Section 5 - Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's /clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 6 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. PASSED by the City Council of the City of Port Angeles at a regular meeting of said ]iecember Council held on the 5th day ofNo-vombe�, 2006. A TEST: A ROVED 4gTO FORM: ir iam E. Bloor, City Attorney Becky J. Us •n,' ity Cler PUBLISHED: nErPmhPr 1 n , 2006 By Summary G1Legal_Backup \ORDINANCES &RESOLUTIONS \2006- 21.Amending Purchasing Level Authorization. 110806.wpd (November 9, 2006) -9- Summaries of Ordinances Adopted by the Port Angeles City Council on December 5, 2006 Ordinance No. 3264 This Ordinance of the City of Port Angeles, Washington, amends the procedure to be followed in approving purchase orders and signing checks, and amends Ordinance No. 2628 and Chapter 3.05 of the Port Angeles Municipal Code, and consolidates various resolutions regarding purchasing. Ordinance No. 3265 This Ordinance of the City of Port Angeles, Washington, revises water service connection fees and charges, water rates, and amends Chapters 3.70, 13.32, 13.44, and 13.69 of the Port Angeles Municipal Code. This Ordinance shall take effect on January 1, 2007. Ordinance No. 3266 This Ordinance of the City of Port Angeles, Washington, amends the 2006 budget, adopts the 2007 budget, and provides for a cost of living increase for certain city employees. The full texts of the Ordinances are available at City Hall in the City Clerk's office or will be mailed upon request. Office hours are Monday through Friday from 8:00 a.m. to 5:00 p.m. Unless otherwise stated, these Ordinances shall take effect five days following the date of publication by summary. Becky J. Upton, CMC City Clerk Publish: December 10, 2006