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ORDINANCE NO. 3309
AN ORDINANCE of the City of Port Angeles, Washington, amending
Ordinance No. 3264, as amended, and Chapter 3.05 of the Port Angeles
Municipal Code to amend the requirements for the lowest responsible
bidder and to comply with recent changes to RCW 39.04.
WHEREAS, Substitute House Bill 2010 added criteria for being considered a "responsible
bidder" for purposes of public works contracts and became effective July 22, 2007, and;
WHEREAS, the City wishes to comply with the recent legislation;
NOW, THEREFORE, THE CITY COUNCIL OF PORT ANGELES, WASHINGTON,
DO ORDAIN AS FOLLOWS:
Section 1. Ordinance 3264, as amended, and Chapter 3.05 PAMC are hereby amended
'to read as follows:
PURCHASING POLICIES AND PROCEDURES
Sections:
3.05.005 Definitions.
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.
3.05.055 Bid Inspection.
3.05.060 Authority to Enter into Contracts, Leases or Rental Agreements.
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.
3.05.120 Definition of Credit Card.
3.05.130 Issuance, Use and Control of Credit Cards.
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3.05.005 Definitions. The definitions in RCW 39.04.010 are adopted by this reference.
3.05.010 Review and Approval of Purchase Orders. It shall be the responsibility of each
Department Head or the Department Head's designee to review and approve or disapprove all
purchase orders for his or her Department. It shall be the responsibility of the Finance Director to
review and approve or disapprove all purchase orders in excess of $5,000.00. 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. 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 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 to
present not less frequently than once each month a list showing all claims paid and the date of
such payment 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 and order the same filed as a permanent record.
3.05.050 - Lowest Responsible Bidder.
A. Before award of a .ublic works contract a bidder must meet the followin'
res onsibili criteria to be considered a responsible bidder and .ualified to be awarded a .ublic
works project. The bidder must:
1. At the time of bid submittal have a certificate of re istration in com.liance
with chapter 18.27 RCW;
2. Have a current Washington state unified business identifier number
3. If a..licable have industrial insurance covera e for the bidder's em lo ees
workin in Washington as required in Title 51 RCW; and em lo ment securi de.artment
number as re uired in Title 50 RCW• and a state excise tax re • istration number as re • uired in
Title 82 RCW; and
4. Not be disqualified from bidding on any public works contract under RCW
3.06.010 or 39.12.065(3).
B. Su..lemental criteria: In addition to the bidder res onsibili criteria in subsection
A. above, wWhen the City receives bids or quotes and it is necessary to determine the lowest
responsible bidder, the following shall apply:
Al. For a contract for purchase of supplies, material or equipment, the City may
take into consideration the quality of the articles proposed to be supplied, their conformity with
the specifications, - .. - . ' - : , and the times of delivery.
B. Whenever there is reason to believe that the lowest acceptable bid is not the
may be entered into to achieve the best possible price.
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G2. In determining "lowest responsible bidder ", in addition to price, the
following elements shall be given consideration:
4-a. the ability, capacity, and skill of the bidder to perform the contract;
2b. the character, integrity, reputation, judgment ability, experience,
and efficiency of the bidder;
3-c. whether the bidder can perform the contract within the time
specified;
4d. the quality of performance of previous contracts;
5e. 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
7_41 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;
8g. if products are available that meet the contract specifications and
re uirements and that are made from rec cled materials or ma be rec cled whether the products
specified in the bid are made from recycled materials or may be recycled or reused...; and
h. other criteria applicable to the particular contract and provided in
the invitation to bid.
3. Su. .lemental criteria for determinin' bidder res.onsibilit includin• the
basis for evaluation and the deadline for appealing a determination that a bidder is not
responsible, must be provided in the invitation to bid or biddin: documents.
4. In a timel manner before the bid submittal deadline, a .otential bidder
ma re uest that the Cit modi _ the supplemental criteria. The Cit must evaluate the
information submitted by the potential bidder and respond before the bid submittal deadline. If
the evaluation results in a chan • e of the criteria the Cit must issue an addendum to the biddin •
documents identifying the new criteria.
5. If the bidder fails to su..1 information re uested concernin • res onsibili
within the time and manner specified in the bid documents, the City may base its determination of
res.onsibility upon any available information related to the supplemental criteria or ma find the
bidder not responsible.
6. If the Ci determines a bidder to be not res onsible the Ci must . rovide
in writing, the reasons for the determination. The bidder may appeal the determination within the
time .eriod specified in the biddin documents b _presenting additional information to the Cit
The Cit must consider the additional information before issuing its final determination. If the
final determination affirms that the bidder is not responsible, the City may not execute a contract
with an other bidder until two business da s after the bidder determined to be not responsible has
received the final determination.
C. Subcontractors. A .ublic works contractor must veri res.onsibilit criteria for
each first tier subcontractor, and a subcontractor of any tier that hires other subcontractors must
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verify responsibility criteria for each of its subcontractors. Verification shall include that each
subcontractor, at the time of subcontract execution, meets the responsibility criteria listed in
subsection A. and .ossess an electrical contractor license if required b chapter 19.28 RCW or
an elevator contractor license if required b chapter 70.87 RCW. This verification requirement
as well as the responsibility criteria, must be included in every public works contract and
subcontract of every tier.
D.
The Director
of Public Works & Utilities shall apply the criteria established in this Section 050 and determine
whether a bidder is responsible. An appeal, as provided in B3 above shall be heard and
determined by the City Manager, whose decision shall be final.
3.05.055 - Bid Ins.ection. Immediatel after the award is made the bid . uotations
obtained shall be recorded o.en to .ublic ins.ection and available b written tele.honic 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 particular expenditure of City funds has been approved in the City Budget as
approved by the City Council.
C. The lease or rental agreement is for a period that does not exceed one year and
involves a total rental amount or value that does not exceed $25,000. As deemed appropriate by
the City Manager, the City Council's Real Estate Committee may be consulted prior to executing
any such lease or rental agreement.
D. The City Manager or his designee shall notify the Council in writing of contracts
entered into pursuant to this section.
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.
B. 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.
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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 Chapter.
3. If less than three quotes are obtainable due to factors beyond the control of
the department, the recommendation to the City Manager or designee shall be accompanied 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 appropriate roster or rosters at any time they submit a written request and
necessary records.
2. The small works roster or rosters shall consist of all responsible contractors
who have requested to be on the list and are properly licensed or registered to perform such work
in this state.
C. Each City department that desires to use the small works roster process without
advertising for bids shall do the following:
1. Invite written, electronic, 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 13.19.1911 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
appropriate small works roster, then the City must notify the remaining contractors that quotations
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.
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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 projects
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 . - : - . • . . - : 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 projects
equitably among contractors willing to perform in the City.
D. For limited public works projects, the City may waive the payment and
performance 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
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 quotations for these contracts are available for public inspection. The quotations
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 or Deputy Director of Public Works and Utilities are
hereby authorized to approve and sign construction contract change orders on construction
contracts, if the change order does not substantially change the scope of the project and if the total
contract amount as adjusted by the change order is within the amount budgeted for the project.
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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. If the total amount of the change
orders for a project is $1,000 or less, a Deputy 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 change orders for a project costing $100,000 or more may
be issued for 15% of the original contract amount, not to exceed $100,000.
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 or Deputy
Director of Public Works and Utilities approves change orders according to the conditions stated
in paragraphs A and B above, he or she shall forward the change order to the City Council for its
information within thirty (30) days of the signing of the change order.
3.05.120 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.
3.05.130 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.
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B. The Finance Department is authorized to adopt any additional procedures or
policies necessary to implement the provisions of this section.
Section 2 - 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 3 - 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 4 - 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
Council held on the 4th day of December, 2007.
ATTEST:
APPROVED AS TO FORM:
Becky J. U n,`6iity Cler1F William E. Bloor, City Attorney
PUBLISHED: December 9 , 2007
By Summary
G:\Legal_ Backup\ ORDINANCES &RESOLUTIONS \ORDINANCES .2007\2007- 29.Responsible Bidder -3.05 PAMC.082707.wpd
November 30, 2007
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Summaries of Ordinances Adopted by the
Port Angeles City Council
on December 4, 2007
Ordinance No. 3309
This Ordinance of the City of Port Angeles, Washington, amends Ordinance No. 3264, as
amended, and Chapter 3.05 of the Port Angeles Municipal Code to amend the requirements for
the lowest responsible bidder and to comply with recent changes to RCW 39.04.
Ordinance No. 3310
This Ordinance of the City of Port Angeles, Washington, amends the 2007 budget, adopts the
2008 budget for the fiscal year ending December 31, 2008, and provides for a cost of living
increase for certain city employees.
Ordinance No. 3311
This Ordinance of the City of Port Angeles, Washington, establishes a conservation fund for the
administration of funds used in the conservation programs which may be authorized by the City
Council, and creates a new Chapter 3.25 of the Port Angeles Municipal Code.
Ordinance No. 3312
This Ordinance of the City of Port Angeles, Washington, revises taxes levied on
telecommunications businesses by amending Chapter 5.80 of the Port Angeles Municipal Code.
This Ordinance shall take effect January 1, 2008.
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 above, these Ordinances shall take effect five days following the date of
publication by summary.
Becky J. Upton, CMC
City Clerk
Publish: December 9, 2007