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Ordinance 15-022 Purchasing CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 15-022 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING SPOKANE VALLEY MUNICIPAL CODE (SVMC) 3.30.030 RELATING TO A PETTY CASH; REPEALING CHAPTERS 3.35, 3.40, 3.45, AND 3.50 SVMC; ADOPTING CHAPTER 3.35 SVMC RELATING TO GENERAL CONTRACT AUTHORITY, ADOPTING CHAPTERS 3.40, 3.41, AND 3.42 SVMC RELATING TO CONTRACTING FOR PUBLIC WORK; ADOPTING CHAPTERS 3.45 AND 3.46 SVMC RELATING TO CONTRACTING FOR PROFESSIONAL SERVICES; ADOPTING CHAPTERS 3.47 AND 3.48 SVMC RELATING TO PURCHASE OF GOODS; ADOPTING CHAPTER 3.49 SVMC RELATING TO ACQUISITION/DISPOSITION OF REAL PROPERTY AND DISPOSITION OF PERSONAL PROPERTY; AND OTHER MATTERS RELATING THERETO. WHEREAS,Title 39 RCW authorizes a city to adopt policies and procedures within its jurisdiction for contracting and purchasing; and WHEREAS, the City of Spokane Valley previously adopted provisions in the Spokane Valley Municipal Code(SVMC)to provide for contracting and purchasing on behalf of the City;and WHEREAS,following an extensive analysis and reorganization of all City Code and administrative provisions relating to purchasing, the City has determined that it is appropriate and necessary to revise the SVMC provisions to reflect changes in state law and to increase efficiency for both staff and the public with which the City contracts. NOW THEREFORE, the City Council of the City of Spokane Valley, Washington, ordains as follows: Section 1. Intent. The City of Spokane Valley declares that the intent of this Ordinance is to repeal chapters 3.35, 3.40, 3.45, and 3.50 SVMC in their entirety; to amend SVMC 3.30.030; and adopt new chapters 3.35,3.40,3.41, 3.42, 3.45, 3.46, 3.47, 3.48,and 3.49 SVMC. Section 2. Repealing Chapters 3.35,3.40,3.45, and 3.50 SVMC. Chapters 3.35, 3.40,3.45,and 3.50 SVMC are hereby repealed in their entirety. Section 3. Amending SVMC 3.30.030. SVMC 3.30.030 is amended as follows: 3.30.030 General fund petty cash account established. The City Manager is hereby authorized to establish a general fund petty cash account in such amounts as the City Manager may from time-to-time, in writing, determine necessary for the efficient handling of the purposes for which the account is established, but not to exceed $1,000. This account is established to facilitate minor authorized disbursements and the making of change. The account shall be administered in accordance with adopted administrative policies. Ordinance 15-022 Page 1 of 16 Section 4. Adopting chapter 3.35 SVMC. A new chapter 3.35 SVMC is hereby adopted as follows: 3.35.005 Definitions. The terms defined in this section shall apply to SVMC 3.35,3.40,3.41,3.42,3.45,3.46,3.47,3.48, and 3.49 and shall have the following meanings: "Architectural and engineering services"means professional services rendered by any person,other than an employee of the City, contracting to perform activities within the scope of the general definition of professional practice in Chapter 18.08, 18.43, or 18.96 RCW. "Bid" means an offer submitted by a bidder to furnish services, labor, supplies, materials, goods, equipment,and other property in conformity with the specifications,delivery terms,and conditions, and other requirements included in the invitation for bids or otherwise required by the City. "Bid bond"means a bond or other appropriate bid proposal deposit as approved in advance by the City,the purpose of which is to provide security to the City in the event the successful bidder fails to enter into a contract with the City. "Bidder"means a firm or individual who regularly maintains a place of business,transacts business, solicits business, or maintains an inventory of merchandise for sale in, and whose business is registered with the City and who submits or has submitted a bid to the City. "Bidding" means the procedure used to solicit quotations on price and delivery from prospective suppliers of contractual services, materials, goods, and equipment which can be through either a formal or informal competitive bid process. "Capital equipment" means any equipment of the City having an initial value of$5,000 or more and an estimated useful life of three or more years. "Change orders" and "requests for additional work" mean a request for additional or alternative services, work or procurement where there are changed conditions, a requirement that extra work or service be performed,or such other circumstances that necessitate a modification to the contract, and where such additional or alternative services,work,or procurement is in the best interest of the City. "City Manager"means the City Manager or designee. "City property" means any property or equity interest in real or personal property held or owned by the City. "Consultant"means any person providing professional services to the City who is not an employee of the City. "Contractual services" means services provided by professional and general service contracts to accomplish a particular project or service. "Person" means any individual, organization, group, association, partnership, firm,joint venture, corporation, or any combination thereof. "Public work"has the meaning set forth in RCW 39.04.010, as adopted or may be amended. Ordinance 15-022 Page 2 of 16 "Purchase"means the acquisition of supplies, materials, goods or equipment, and other property. "Purchase order"means a written authorization calling on a vendor or supplier to furnish supplies, materials,goods,equipment,and other personal property to the City with a promise for payment to be made later. "Purchasing agent"means a person who purchases supplies,materials,goods,equipment,and other property on behalf of the City. "Requisition" means a standard form providing detailed information as to quantity, description, estimated price,possible vendors,fund account,signature,and other information necessary to make purchasing decisions. "Responsible bidder"means a bidder who meets the requirements set forth in RCW 39.04.350 as adopted or may be amended. Additionally, a bidder shall prove by experience or information furnished to the satisfaction of the City Manager that current financial resources, production or service facilities, service reputation and experience are adequate to make satisfactory delivery of supplies of acceptable quality, equipment, or contractual services and who has not violated or attempted to violate any provision of this Chapter. In addition to price, the City shall take into account the following when determining the responsible bidder: 1.The ability,capacity,and skill of the bidder to perform the contract or provide the service required; 2. The character, integrity, reputation,judgment, experience, and efficiency of the bidder; 3. Whether the contractor can perform the required work within the time specified by the City; 4. Quality of the contractor's performance under previous contracts with the City or other governmental entity; and 5. The previous and existing compliance by the contractor with laws relating to contracts or services with the City. The five supplemental criteria described above shall be included in the documents for all bids so prospective bidders may be aware of such supplemental criteria. The City may include additional supplemental criteria as provided in RCW 39.04.350 for particular projects as is determined necessary. 3.35.010 Contract authority. A. The City Manager is authorized to enter into contracts,contract modifications,or change orders without City Council approval when the aggregate amount of the contract and all existing contract amendments or change orders does not exceed $200,000, except pursuant to SVMC 3.35.010(C). B. Any contract, contract amendment, and/or change order in excess of the City Manager's authority shall require prior approval of the City Council. C. On contracts for which prior City Council approval is required and received,the City Manager shall have authority to execute any amendments or change orders which,when aggregated,are less than 15 percent of the original contract amount, or up to$200,000,whichever is less. Ordinance 15-022 Page 3 of 16 D. The City Council Finance Committee is authorized to approve change orders on short notice that are in excess of the amounts authorized in SVMC 3.35.010(C), in circumstances where such a change order is necessary to avoid a substantial risk of harm to the City. In such an event,the City Manager shall provide appropriate information to the City Council at its next regular meeting setting forth the factual basis for the action. E. Change orders shall only be approved if they are for additional or alternative services,work or procurements that are within the scope of purpose and intent of the original bid and contract. 3.35.020 Rules and policy. The City Manager may develop rules, policies,and procedures to implement this chapter. 3.35.030 Administration. Under the direction of the City Manager, the contracting and purchasing procedures shall be administered pursuant to chapters 3.35 through 3.49 SVMC and other applicable laws, including all applicable state and federal laws. The City Manager shall have the responsibility to: A. Administer and maintain the contracting process and the purchasing system according to the rules and regulations established or authorized by applicable ordinances and statutes. B. Coordinate the negotiation, purchase, and disposition of all City supplies, materials, and equipment in consultation with City staff. C. Seek to obtain a competitive price on all City contracts or purchases by bidding, submitting requests for proposals and qualifications, using a Small Works Roster, Consultant Roster, and Vendor List, or negotiating on such contracts or purchases as appropriate, unless otherwise specifically excluded in chapters 3.35 through 3.49 SVMC. D. Prescribe and maintain such administrative policies, procedures, and forms as are reasonably necessary to implement chapters 3.35 through 3.49 SVMC. E. Coordinate the inspection of all City-purchased equipment to ensure conformance with specifications. F. Ensure that the Small Works Roster(s),Consultant Roster(s),Vendors List(s),and other records needed for the efficient operation of the purchasing system are maintained. G. Maintain the property inventory and fixed asset systems of the City. H. Determine the need for any routine preventive maintenance contracts on various pieces of equipment, and to establish and maintain said maintenance contracts. I. Periodically prepare a comprehensive list of surplus, worn out, or obsolete City-owned equipment. Items which cannot be used or reassigned to another department shall be recommended for disposal pursuant to SVMC 3.49.020. Ordinance 15-022 Page 4 of 16 3.35.040 Prohibited practices. The following types of purchasing and bidding practices are hereby prohibited and may result in disqualification of the bid, proposal, or procurement quote: A. Collusion Among Bidders. Any agreement or collusion among bidders, prospective bidders, vendors or prospective vendors to either buy or sell or fix prices in restraint of free competition. Such bidders or vendors may be subject to exclusion from future bidding or procurement processes with the City when determined by the City Manager to be in the best interests of the City. B. Disclosure of Formal Bid Contents. Any disclosure of information contained in the sealed bid prior to bid opening. Notwithstanding anything herein to the contrary,all bids submitted by bidders taking advantage of any information revealed contrary to SVMC 3.35.040 shall become null and void. C. Gratuities. In accordance with high standards of behavior,the acceptance of any gift or gratuity in the form of cash,merchandise,or any other thing of value by an official or employee of the City from any bidder,vendor or contractor, or prospective bidder, vendor,or contractor. D. Employee-Owned Businesses. Obtaining City goods or services from businesses in which City officials, employees, or their immediate family members have a majority ownership interest or otherwise exceed the"interests"pursuant to chapter 42.23 RCW. E. Sale of Materials and Supplies. The City acquiring goods or services for any private party, or selling its materials or supplies to City officials, employees or the public except when such materials have been declared surplus and disposed of pursuant to chapter 3.49 SVMC. Section 5. Adopting chapter 3.40 SVMC. A new chapter 3.40 SVMC is hereby adopted as follows: 3.40.010 Competitive bidding—Public work in excess of$300,000. For public work contracts in excess of$300,000, the following competitive bid process shall be used. When using federal funds, the City shall also comply with all mandatory federal requirements. A. Publication of Notice. Sealed bids shall be invited by a single publication in a newspaper of general circulation at least 13 days before the date and time set for receiving such bids, and shall include an estimate of the probable cost,together with a description of the work,and shall state that plans/specifications may be obtained from the City, and include the manner, place, date,and time for submitting a bid to the City. The City Clerk shall also post notice of the request in a public place. B. Rejection of Bids. The City Manager may reject,without cause, any and all bids and may re- advertise for bids pursuant to the procedures herein described. If no bids are received on the first call or any subsequent re-advertisement, the City Manager may negotiate a contract with a contractor at the lowest cost possible to the City. C. Performance and Payment Bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure Ordinance 15-022 Page 5 of 16 complete, proper and full performance of the contract and full payment of all laborers,mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects pursuant to RCW 39.08.010 through 39.08.030, as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions. For public works and works by contract on which prevailing wage is required to be paid under $35,000, solely at the contractor's option, the City may, in lieu of requiring payment and performance bonds, retain 50% of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed pursuant to chapter 60.28 RCW. Retainage in lieu of payment and performance bonds shall only be used for contracts where the requirement of bonds substantially increases the cost of the contract. D. Bid Bonds. As a condition of bidding, a bid bond in the amount of five percent of the bid amount shall be required. Such bid bond shall be required on all formally bid public work construction projects, and shall be due at such time as the bid is submitted to the City. When the contract is let, all bid bonds shall be returned to the bidders except that of the successful bidder, which shall be retained until a contract is entered into and a bond to perform the work furnished as provided above. If the successful bidder fails to enter into the contract in accordance with the bid within 10 days from the date at which the bidder is notified of bid award, the bid bond shall be forfeited. E. Award of Bid. Except as otherwise provided herein, the City will accept the bid of the lowest responsible bidder. F. Award to Other Than Low Bidder. When the bid award is not given to the lowest responsible bidder, a full and complete statement of the reasons shall be prepared by the City Manager and placed in the City file relating to the transaction. 3.40.020 Exemptions to competitive bidding requirements. The following types of purchases are exempt from competitive bidding requirements. The factual basis for any purchase deemed exempt pursuant to SVMC 3.40.020(A)-(C) shall be filed with the contract with the City Clerk and shall be open to public inspection. A. Sole Source or Equipment Repair. Purchases which by their nature are not adapted to competitive bidding,such as purchases which are clearly and legitimately limited to a single source, and contracts to repair equipment owned by the City which may be more efficiently accomplished by a certain person or firm with previous experience on the equipment. B. Special Facilities or Market Conditions. Purchases involving special facilities or market conditions that generally relate to acquisition of unique facilities that may be specially manufactured or not otherwise generally available. Special market conditions may require immediate acquisition based upon a favorable offer, including,but not limited to, liquidation sales, public or private party offers, and similar circumstances where the acquisition can be obtained at below-market value. C. Emergency Public Work Projects. In the event that an emergency should arise which requires immediate action on the part of the City to protect the health, safety, or welfare of the citizens of Ordinance 15-022 Page 6 of 16 the City and where it is not possible to timely adhere to the bidding practices set forth above, the person authorized by state law or otherwise designated by the City Council to act in the event of an emergency may declare an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts to address the emergency situation. If a contract is awarded pursuant to this subsection without bidding due to an emergency, a written finding of the existence of an emergency shall be made by the governing body or its designee and duly entered of record no later than two weeks following the award of the contract. For purposes of this subsection,an emergency means unforeseen circumstances beyond the control of the City 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. D. Auction. The purchase of supplies, materials, or equipment not exceeding a cost of$200,000 through auctions conducted by the government of the United States or any agency thereof, any agency of the state of Washington, any municipality or other government agency, or any private party, may be authorized by the City Manager if the item may be obtained at a competitive cost. E. Exchanges. By mutual agreement, the City may exchange supplies, materials, services, or equipment with other public agencies. Section 6. Adopting chapter 3.41 SVMC. A new chapter 3.41 SVMC is hereby adopted as follows: 3.41.010 Small Works Roster. The City Clerk shall maintain one or more Small Works Rosters comprised of contractors who(1) have requested to be on the roster,and(2)are properly licensed or registered to perform contracting work in the state of Washington. A Small Works Roster may be used in lieu of formal sealed competitive bid procedures to award contracts for public work where the estimated cost of the Work is $300,000 or less. Small Works Rosters shall be maintained pursuant to the laws of the state of Washington as now enacted or hereafter amended. 3.41.020 Creation of separate Small Works Rosters. The City may elect to establish Small Works Rosters for different specialties or categories of anticipated work with such rosters making distinctions between contractors based upon such specialties or work. 3.41.030 Maintenance of Small Works Roster. Small Works Rosters shall be maintained as follows: A. At least once per year,the City Clerk shall publish in a newspaper of general circulation a notice of the existence of the Small Works Roster(s)and soliciting the names of contractors for such Small Works Roster(s). The City Clerk shall place on each Small Works Roster the names of qualified contractors who respond to the published notice requesting to be included on each Small Works Roster. Thereafter,the City Clerk shall add to each Small Works Roster the names of contractors who submit a written request and appropriate records. Ordinance 15-022 Page 7 of 16 B. In order to be included on a Small Works Roster,the contractor shall supply information on a contractor qualification form developed by the City. The contractor qualification form shall include, at a minimum, the name, address, e-mail address and phone number of the contractor,the contractor's Washington registration number,the contractor's insurance company,the contractor's bonding company, and the contractor's area or areas of work. 3.41.040 Use of Small Works Rosters. A. The City may utilize a Small Works Roster when seeking to construct any public work or improvement with an estimated cost including labor, material, supplies, and equipment, of $300,000 or less. B. Procedures shall be established for securing quotations from contractors on the appropriate Small Works Roster to ensure that a competitive price is established and to award contracts to the lowest responsible bidder,as provided in SVMC 3.41.040(C). Invitations for bids shall include the scope and nature of the work to be performed as well as materials and equipment to be furnished. Detailed plans and specifications need not be included in the invitation. Quotations shall be invited from all appropriate contractors on the appropriate Small Works Roster. C. When awarding a contract for work from a Small Works Roster,the City shall award the contract to the lowest responsible bidder. However,the City reserves the right under applicable law to reject any or all bids and to waive procedural irregularities in the bid or bidding process. D. The City may receive bids in writing, which may be submitted electronically. The time and date of receipt shall be recorded to ensure all bids are presented in a timely fashion for review and consideration. After expiration of the time and date for submission of all bids or quotations, the City shall review the bids submitted and either offer a contract to perform the public work or reject all bids. E. The City shall post on the City's website a list of the contracts awarded pursuant to chapter 3.41 SVMC at least once every year. The list 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 it was awarded. The list shall also state the location where the bid quotations for these contracts are available for public inspection. F. A contract awarded from a Small Works Roster under this Chapter need not be advertised in a legal newspaper of general circulation. Immediately after an award is made, the bid quotations shall be recorded, open to public inspection, and available by telephone inquiry. G. Performance and Payment Bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure complete, proper and full performance of the contract and full payment of all laborers,mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects,as provided for and in the manner set forth in RCW 39.08.010 through 39.08.030,as adopted or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions. For public works and works by contract on which prevailing wage is required to be paid under $35,000, solely at the contractor's option, the City may, in lieu of requiring payment and Ordinance 15-022 Page 8 of 16 performance bonds, retain 50% of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed pursuant to chapter 60.28 RCW. Retainage in lieu of payment and performance bonds shall only be used for contracts where the requirement of bonds substantially increases the cost of the contract. Section 7. Adopting chapter 3.42 SVMC. A new chapter 3.42 SVMC is hereby adopted as follows: SVMC 3.42.010 Public work equal to or less than $40,000 for one trade and $65,000 for two or more trades and greater than$15,000. When entering into a contract for public work equal to or less than $40,000 if only one trade or craft is involved, or $65,000 if two or more trades are involved, but greater than $15,000, the responsible department shall obtain three or more proposals for the public work required,select the lowest responsible proposal, and maintain a record of the process followed. Alternatively, the department may utilize the Small Works Roster and process pursuant to chapter 3.41 SVMC. If less than three proposals are received, City staff shall not be required to resubmit for additional proposals, but shall select from the proposals submitted. If no proposals are received, City staff shall not be required to resubmit for additional proposals, but may negotiate with any available contractor. SVMC 3.42.020 Public work equal to or less than $15,000. When entering into a contract for public work in an amount equal to or less than $15,000, the responsible department is encouraged, but is not required, to use a competitive bidding process, including obtaining three proposals pursuant to SVMC 3.42.010, or using the Small Works Roster and process pursuant to chapter 3.41 SVMC. If a competitive process is not utilized,the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. SVMC 3.42.030 Exception to selection processes. If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.42.010 and SVMC 3.42.020, the selection procedures set forth in chapter 3.42 SVMC may,with prior approval of the City Manager, be waived by the department director, and the contract may be awarded without following the procedures set forth in SVMC 3.42.010 and 3.42.020. The circumstances giving rise to such waiver shall be documented in writing. SVMC 3.42.040 Performance and payment bonds. Before entering into a contract for any public work or work by contract on which prevailing wage is required to be paid, regardless of the amount of such contract except as provided below, a performance bond and a payment bond shall be required in such amounts as are reasonably necessary to protect the best interests of the City and to ensure complete, proper and full performance of the contract and full payment of all laborers, mechanics, and subcontractors and material suppliers. A performance bond and a payment bond shall be required on all public work projects, pursuant to and in the manner set forth in RCW 39.08.010 through 39.08.030, as adopted Ordinance 15-022 Page 9 of 16 or amended. Performance and payment bonds shall be released upon completion of all necessary performance and payment conditions. For public works and works by contract on which prevailing wage is required to be paid under $35,000, solely at the contractor's option, the City may, in lieu of requiring payment and performance bonds, retain 50% of the contract amount until the later of 30 days after final acceptance or until receipt of all necessary releases from the Washington State Department of Revenue, the Employment Security Department, and the Washington State Department of Labor and Industries and settlement of any labor, material, or tax liens filed pursuant to chapter 60.28 RCW. Retainage in lieu of payment and performance bonds shall only be used for contracts where the requirement of bonds substantially increases the cost of the contract. Section 8. Adopting chapter 3.45 SVMC. A new chapter 3.45 SVMC is hereby adopted as follows: 3.45.010 Consultant Roster for Architectural and Engineering Services. Annually, or in response to specific projects or work as set forth below, the City shall encourage, through notice published in a newspaper of general circulation,architectural and engineering firms to submit a statement of qualifications and performance data which can be used to select firms that provide services to the City. The City Clerk shall maintain the Consultant Roster for Architectural and Engineering Services, to be called the "Consultant Roster for Architectural and Engineering Services" or such other title as may be appropriate, and shall further maintain all statements of qualifications submitted, all of which shall be available for public inspection. The City Manager shall establish procedures for the maintenance and use of the Consultant Roster. 3.45.020 Selection Process — Consultant Roster for Architectural and Engineering Services for contracts up to$100,000; Request for Qualifications for contracts over$100,000. A. For contracts up to $100,000, the City may use the Consultant Roster for Architectural and Engineering Services, or may use the formal request for qualifications process pursuant to SVMC 3.45.020(B),to select a consultant. B. For contracts over$100,000,the City shall,at least 13 days prior to contracting for architectural or engineering services, publish a notice stating the specific project or scope of work or announce generally the category or type of professional services required. The notice shall contain the name and address of a City representative who can provide information and details on the request for qualifications or request for proposals. 3.45.030 Procurement of architectural and engineering services. A. The City shall utilize the following process for procurement of architectural and engineering services: 1.If the City elects to use the Consultant Roster for Architectural and Engineering Services, the City shall review the current statements of qualifications on file with the City Clerk, and shall conduct discussions with one or more firms regarding anticipated scope of services and the consultant's ability to provide such services. If the City elects to use a combination of consultants from the Consultant Roster for Architectural and Engineering Services and a more formal request for qualifications process, the City shall review both Ordinance 15-022 Page 10 of 16 current statements on file and statements submitted in response to the notice for the request for qualifications. 2. If the City elects to use the more formal request for qualifications process,the City shall review statements submitted in response to the notice pursuant to SVMC 3.45.020(B) and shall conduct discussions with one or more firms regarding anticipated scope of services and the consultant's ability to provide such services. 3. The City may conduct interviews with the top three qualified consultants on non- federally funded projects. The City shall conduct interviews with the top three qualified consultants on federally funded projects. B. The City shall select the most highly qualified firm to provide the services based upon the criteria set forth below and in the request. The evaluation criteria include, but are not limited to: 1. The ability of the firm to provide the requested services; 2. The scope of work or methods to furnish the services; 3. Qualifications, experience, and references; 4. Performance under previous contracts with the City; and 5. Such other information as deemed relevant. After identification of the most highly qualified firm,the City shall request a fee proposal from the firm and thereafter proceed to negotiate a contract at a price which is determined by the City to be fair and reasonable. In making this determination, the City shall evaluate the estimated value of the services, the scope, complexity, and nature of the request. If the City is unable to negotiate a fair and reasonable price for services, negotiations shall be terminated and the next most qualified firm shall be selected. C. When the parties have reached a fair and reasonable price, and depending upon the amount of the contract, the City Manager, or when appropriate the City Council, shall review and, if they so choose, authorize the contract. During the negotiation process, the selected firm shall not contact any member of the City Council to discuss the fee for services unless otherwise authorized. The City reserves the right to cancel any request for qualifications or proposals. The request for qualifications or proposals shall not be deemed an offer of contract nor shall any firm be entitled to recover any cost associated with preparing a response. 3.45.040 Emergency and limitation. Nothing contained herein shall limit or prevent the City from procuring architectural or engineering services in the event of an emergency. Chapter 3.45 SVMC shall be expressly limited to the professional services identified herein. Ordinance 15-022 Page 11 of 16 Section 9. Adopting chapter 3.46 SVMC. A new chapter 3.46 SVMC is hereby adopted as follows: SVMC 3.46.010 Contracts for Services. A. Chapter 3.46 SVMC shall not apply to architectural and engineering services, the procurement of which is governed by SVMC 3.45. B. When entering into a contract for services where the contract is expected to exceed $100,000 or is expected to be effective for more than one year,a competitive selection process shall be used. This process may include a "Request for Qualifications" or "Request for Proposals" process or formal competitive bidding procedures pursuant to SVMC 3.40.010. C. When entering into a contract for services where the contract is not expected to exceed $100,000, is expected to be greater than $15000, and is not expected to be effective for more than one year,the responsible department shall obtain three or more proposals for the services required, select the lowest responsible proposal, and maintain a record of the process followed. The responsible department may use the Consultant Roster pursuant to SVMC 3.46.020 to obtain proposals. When contracting for services which have historically and traditionally been considered professional services, such as attorneys and accountants, the responsible department may, when determined to be in the best interest of the City, obtain such services by negotiation without obtaining three proposals. D. When entering into a contract for services where the contract is not expected to exceed $15,000 and is not expected to be effective for more than one year,the responsible department is encouraged, but is not required, to use a competitive selection process, such as obtaining three proposals pursuant to SVMC 3.46.010(C). If a competitive process is not utilized,the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. SVMC 3.46.020 Consultant Roster for Non-Architectural and Engineering Services. Annually, or in response to specific projects or work as set forth above, the City shall encourage, through notice published in a newspaper of general circulation, non-architectural and engineering firms to submit a statement of qualifications which can be used to select firms that provide services to the City. The City Clerk shall maintain the Consultant Roster for Non-Architectural and Engineering Services, to be called the "Consultant Roster for Non-Architectural and Engineering Services" or such other title as may be appropriate, and further shall maintain all statements of qualifications submitted, all of which shall be available for public inspection. The City Manager shall establish procedures for the maintenance and use of the Consultant Roster for Non- Architectural and Engineering Services. SVMC 3.46.030 Exception to selection processes. If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.46.010, the selection procedures set forth in this chapter may,with prior approval of the City Manager,be waived by the department director, and the contract may be awarded without following the procedures set forth in SVMC 3.46.010. The circumstances giving rise to such waiver shall be documented in writing within 14 days. Ordinance 15-022 Page 12 of 16 Section 10. Adopting chapter 3.47 SVMC. A new chapter 3.47 SVMC is hereby adopted as follows: SVMC 3.47.010 Purchases of goods greater than$40,000. A. When making a purchase of goods, equipment, or supplies in excess of $40,000, the responsible department shall, at least 13 days prior to purchasing such goods, publish a notice of request for bids stating the written specifications of the goods required and desire of the City to purchase such goods. The notice shall contain the written specifications, the date for submitting bids, and name and address of the City representative who can provide information on the request for bids. Upon receipt of the written bids, the City shall select and purchase the goods from the vendor submitting the lowest bid; provided that such bid meets all specifications provided in the notice. When determining the lowest bid, the City may take into account sales tax revenues received by the City, shipping, and transportation costs. All purchases of goods in the amount of $1,000 or more shall comply with SVMC 3.48.030. B. For purposes of SVMC 3.47.010, the threshold limits shall only apply to a single good, piece of equipment, or supply item. SVMC 3.47.020 Purchases of goods equal to or less than $40,000 and greater than $15,000. A. When making a purchase of goods, equipment, or supplies equal to or less than $40,000, but greater than $15,000, the responsible department shall obtain three or more quotes for the goods, equipment, or supplies required, select and purchase the goods from the vendor submitting the lowest quote,and maintain a record of the process followed. Alternatively,the department may utilize the Vendor List and process set forth in chapter 3.48 SVMC. The department may consider quotes by any vendor with which the City has a vendor account as one of the three required quotes. City staff may take verbal quotes and reduce them to writing. When determining the lowest quote, the City may take into account local sales tax revenues, shipping, and transportation costs. If less than three quotes are received,City staff shall not be required to resubmit for additional quotes,but shall select from the quotes submitted. All purchases of goods in the amount of$1,000 or more shall also comply with SVMC 3.48.030. B. For purposes of this section,the threshold limits shall only apply to a single good,piece of equipment, or supply item. SVMC 3.47.030 Purchases of goods equal to or less than$15,000. When purchasing goods, equipment, or supplies in an amount equal to or less than $15,000, the responsible department is encouraged, but is not required, to use a competitive selection process, including obtaining three quotes pursuant to SVMC 3.47.020,or using the Vendor List and process set forth in chapter 3.48 SVMC. The responsible department shall contact vendors at least once annually to establish prices on common items that may be purchased in bulk. Such prices may be used when determining the threshold limits for purposes of chapter 3.47 SVMC. A City department may aggregate a group of common items so long as each of such items individually are less than $15,000. Any individual items greater than $15,000 shall be bid pursuant to SVMC 3.47.010 or SVMC 3.47.020. If a competitive process is not utilized,the responsible department shall seek to achieve maximum quality at minimum cost by making an award based on its experience and knowledge of the market. All purchases of goods in the amount of$1,000 or more shall also comply with SVMC 3.48.030. Ordinance 15-022 Page 13 of 16 SVMC 3.47.040 Exception to purchase processes. If a situation should arise which requires immediate action on the part of the City to protect the best interests of the City or the health, safety or welfare of the citizens of the City, and where it is not possible to timely adhere to the procedures set forth in SVMC 3.47.010 through SVMC 3.47.030, the purchasing procedures set forth in this chapter may, with prior approval of the City Manager, be waived by the department director, and the purchase may be made without following the procedures pursuant to SVMC 3.47.010 through 3.47.030. The circumstances giving rise to such waiver shall be documented in writing within 14 days. Section 11. Adopting chapter 3.48 SVMC. A new chapter 3.48 SVMC is hereby adopted as follows: 3.48.010 Use of Vendor List. A Vendor List is authorized and maintained for the purchase of goods, equipment, and supplies in an amount less than $40,000. The Vendor List shall be maintained by the City Clerk. 3.48.020 Advertising for Vendor List. At least annually, the City shall publish in a newspaper of general circulation a notice of the existence of a Vendor List for purchases of goods, equipment, and supplies and solicit the names of vendors who wish to be added to the list. The City Manager shall establish policies and procedures to ensure that a competitive price is established and for purchasing from the Vendor List. 3.48.030 Purchase orders. Purchase orders shall be used for the purchase of goods,equipment,and supplies with a cumulative cost of $1,000 or more per purchase. The responsible department shall receive prior written approval from the City Manager for the use of a purchase order to purchase goods,equipment, and supply items in an amount greater than$20,000. All purchase orders shall be accompanied by any applicable vendor bid or quote documentation. No purchase order is required for the purchase of assets or consumable goods when required as part of pre-approved projects, for services, or for utility payments by the City. The City Manager shall establish policies and procedures governing the use of purchase orders. Section 12. Adopting chapter 3.49 SVMC. A new chapter 3.49 SVMC is hereby adopted as follows: 3.49.010 Acquisition of real property. The City Manager is authorized to negotiate the purchase of real property, which shall be based upon a fair-market value appraisal of the property. The City shall not pay more than fair-market value for any real property, except as may be approved by the Washington State Department of Transportation on behalf of the City for road construction projects. Final approval of any purchase of real property shall be obtained from City Council prior to purchase; provided City Council may delegate authority for approval and purchase to the City Manager or City staff as may be appropriate. Ordinance 15-022 Page 14 of 16 3.49.020 Disposition of City property. A. Declaring Real and Personal Property Surplus. The decision to declare City property surplus shall rest solely with the City Council. Personal property with a value of less than $10.00 is declared to be of de minimis value and exempt from this provision. Employees of the City shall not be allowed to purchase surplus property from the City. 1. Upon a finding by a department director that the City property is surplus to departmental use, the City Manager shall provide notice of potential disposition to other City departments. If any department director desires to acquire and use the proposed surplus City property, the property may be transferred to the requesting department director, or other authorized representative. 2. If no request for the use of proposed surplus property is received from staff, notice and recommendation of the proposal to declare the City property surplus shall be given to the City Council. The City Council may pass a resolution declaring the City property surplus. 3. The City Council may declare City property surplus upon one or more of the following criteria: a. The City has or anticipates no practical, efficient, or appropriate use for the property. b. The purpose served by the property can be accomplished by use of a better, less costly or more efficient alternative. c. The purpose served by the property no longer exists as determined by a change of policy or practice. d. The property is damaged, inoperable or obsolete and the cost of repairing the same is uneconomical or impractical. B. Sale of Property. Following passage of a resolution declaring City property surplus, City property shall be sold or disposed of in accordance with the following: 1. The City Manager may dispose of surplus personal property by public auction, bid, or other method of sale on terms deemed to be in the best interests of the City. 2. Surplus personal property which is unsellable because of obsolescence, wear and tear, or other reasons may be dismantled, if necessary, and sold as scrap. 3. For surplus real property, the City Manager shall secure a market value appraisal and proceed to sell the same by public auction or through other procedures the City Manager deems to be in the best interests of the City. C. Trade of Real Property. Real property may be traded under the following conditions: 1. If the City Manager determines that the disposal of real property declared surplus under this section could realize greater benefit to the City through consideration other than cash, the City Manager may invite prospective purchasers to tender consideration of cash and/or property. Upon receipt of a bid or offer tendering in-kind consideration, and prior to Ordinance 15-022 Page 15 of 16 accepting such bid or offer,the City Manager shall make a report setting forth the benefits of such a transaction. This report shall be made to the City Council at a formal meeting and shall be open to the public. 2. Before accepting any bid or offer containing in-kind consideration, an adequate appraisal shall have been made by a qualified independent appraiser. 3. If the City Council finds that the bid or offer containing the in-kind consideration has more value or benefit to the City than any other bid or offer submitted, the City Manager may accept the bid or offer containing in-kind consideration. D. Lease of Public Property. The City Manager may authorize the lease or sublease of any property, including real property, under such terms and conditions as the City Manager may deem desirable, fair and appropriate, either by use of negotiations or bidding in the best interests of the City. Leases of real property shall not be granted for a period of more than five years, unless otherwise authorized by the City Council. Section 13. Severability.If any part of SVMC 3.30.030,or chapters 3.35,3.40,3.41,3.42,3.45,3.46,3.47, 3.47, 3.48, or 3.49 SVMC is declared unenforceable, invalid, or unconstitutional, such unenforceability, invalidity, or unconstitutionality shall not affect the enforceability, validity, or constitutionality of the remainder. Section 14. Effective Date. This Ordinance shall become effective on May 1,2016, before which the City shall publish the Ordinance, or a summary thereof, in the official newspaper of the City. Adopted this 18`x'day of November, 2015. City of Spokane Valley I''rafos, Mayor A75-191 nn ,�I Christine Bainbridge, City Clerk Approved as to Form: 1- &Offic of the City Attorney Date of Publication: // Effective Date: May 1, 2016 Ordinance 15-022 Page 16 of 16