Ordinance 07-004 Amending Purchasing Policy CITY OF SPOKANE VALLEY
SPOKANE COUNTY WASHINGTON
ORDINANCE NO.07-004
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON, AMENDING
CERTAIN REGULATIONS PERTAINING TO PURCHASING FOR THE CITY OF SPOKANE
VALLEY PURSUANT TO SPOKANE VALLEY MUNICIPAL CODE CHAPTERS 3.35, 3.40,
3.45, AND 3.50, AND PROVIDING FOR OTHER MATTERS PROPERLY RELATED
THERETO.
WHEREAS, RCW Title 39 authorizes a city to adopt policies and procedures within its
jurisdiction for contracting and purchasing; and
WHEREAS, the City of Spokane Valley previously adopted Code provisions to provide for
contracting and purchasing on behalf of the City; and
WHEREAS, the City has determined that it is appropriate and necessary from time to time to
review and revise Code provisions to reflect changes in state law and to attempt to increase efficiency;
and
WHEREAS, it will further the City's health, safety and welfare to make revisions to the City's
contracting and purchasing Code provisions.
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
amend Spokane Valley Municipal Code Chapters 3.35,3.40,3.45,and 3.50 to comply with state law.
Section 2. SVMC 3.35 to be amended. Spokane Valley Municipal Code Chapter 3.35 shall
be amended as follows:
Sections:
3.35.005 Definitions
3.35.010 Contract Authority.
3.35.050 Rules and policy.
3.35.005 Definitions.
"Change orders and requests for additional work" means a request for additional services
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. The scope of the work,
procurement or service may be modified to serve the best interest of the City. Extra work may be
ordered by the city manager in order to accomplish the purpose and intent of the contract with the
City.
"City Manager"means the city manager or designee.
Ordinance 07-004 Amending Purchase Code Page 1 of 10
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 contract
amendments or change orders do not exceed$200,000,except as set forth in subsection C,below.
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 fifteen percent of the original contract amount, or up to $200,000,
whichever is less.
D. The Finance Committee of the City Council is authorized to approve change orders on
short notice that are in excess of the amounts authorized in subsection C, above, 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.
3.35.050 Rules and policy.
The city manager may develop rules,policies,and procedures to implement this chapter.
Section 3. SVMC 3.40 to be amended. Spokane Valley Municipal Code Chapter 3.40 shall
be amended as follows:
Sections:
3.40.010 Definitions.
3.40.020 Administration.
3.40.030 Local vendors.
3.40.040 Competitive bidding—public works.
3.40.050 Exemptions to competitive bidding requirements.
3.40.060 Prohibited practices.
3.40.070 Disposition of public property.
3.40.010 Definitions.
Unless the context requires otherwise, the terms used in this chapter shall have the following
meanings:
"Adequate appropriation balance" means budgeted funds are still available in the fund
budget.
"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 security as approved in advance by the City.
Ordinance 07-004 Amending Purchase Code Page 2 of 10
"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 is registered
or licensed by,the City.
"Bidding" means the procedure used to solicit quotations on price and delivery from
prospective suppliers of contractual services, materials, goods, equipment, and other City
property,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$5000.00 or
more and an estimated useful life of three or more years.
"City Manager"means the city manager or designee.
"City property" means any item of real or personal property owned by the City.
"Contractual services" means professional and general service contracts to accomplish a
particular project or service.
"Purchase" means the acquisition of supplies, materials, goods or equipment and other
property.
"Purchase order" means a document used to authorize the encumbrance of City funds toward
the purchase of supplies, materials,goods, equipment and other property.
"Purchasing agent" means the finance director or designee who will purchase 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 has proven 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 provisions of this policy.
3.40.020 Administration.
Under direction of the finance director, the purchasing procedure shall be administered in
accordance with this chapter and other applicable laws. The.finance director or designee(s) shall
have the responsibility to:
A. Administer and maintain 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 competition by bidding or negotiation on all City purchases.
D. Prescribe and maintain such administrative policies, procedures and forms as are
reasonably necessary to implement this chapter.
E. Coordinate the inspection of all City-purchased equipment to assure conformance with
specifications.
Ordinance 07-004 Amending Purchase Code Page 3 of 10
F. Ensure that bidders' lists, vendors' catalog files 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 with appropriate City staff 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 at a public auction.
3.40.040 Competitive bidding—public works.
For public work contracts where the small works process in SVMC 3.50 is not used, the
following competitive bid process shall be used:
A. Publication of Notice. Sealed bids shall be invited by a single publication in a newspaper
of general circulation at least fifteen days before the date and time set for opening 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 finance director 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, the
finance director may negotiate the purchase with a vendor at the lowest cost possible to the City.
C. Performance Bonds. Before entering into a contract, the finance director may require a
performance bond in such amount as is reasonably necessary to protect the best interests of the
City and to ensure complete, proper, and full performance of the contract. A performance bond
shall be required on all public works construction projects, as set forth in RCW 39.08.010 - .030,
as adopted or amended..
D. Bid Bonds. The finance director may require as a condition of bidding a bid bond in the
amount of five percent (5%) of the bid amount. Such bid bond shall be required on all formally
bid public works 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 finance
director and placed in the City file relating to the transaction.
3.40.050 Exemptions to competitive bidding requirements.
The following types of purchases are exempt from competitive bidding requirements:
A. Sole Source. 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. The city manager shall have previously adopted
written policies, which require setting forth the contract and factual basis for this exemption,
which must then be recorded with the city clerk and open to public inspection.
Ordinance 07-004 Amending Purchase Code Page 4 of 10
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. The city manager shall have previously adopted written policies,
which require setting forth the contract and factual basis for this exemption, which must then be •
recorded and open to public inspection
C. Auction, Closeout, Bankruptcy Sales. If it is determined that supplies, materials, or
equipment can be purchased through public auction, closeout sale, bankruptcy sale or other
similar sale at a cost below the market cost, the finance director may authorize said purchase(s)
up to $200,000.00.
D. Exchanges. The City may by agreement exchange supplies, materials or equipment with
other public agencies.
E. Interlocal Agreements in Letting of Contracts for Commodities, Equipment or Services.
The city manager may enter into joint purchase agreements with any and all other public agencies
within the state for the purchase of any commodity, equipment or service as permitted by state
law,where it is determined by the city manager to be in the best interest of the City.
F. Emergency Purchases. In the event that an emergency should arise after office hours,
which emergency requires immediate action on the part of the City department involved for the
protection of the best interests of the City, or should such a situation arise on a Saturday, Sunday
or holiday and where it is not possible or convenient to reach the city manager, any necessary
purchase shall be made by the City department for which the purchase is necessary. The purchase
shall be reported to the finance director the next business day. Publication notices may be waived
for emergency purchases as provided by law.
G. Petty Cash. The finance department may maintain a petty cash/change fund of up to
$1,500 to help eliminate the issuance of purchase orders and claims vouchers for small items
needed immediately from vendors not having open purchase orders. No single petty cash
purchase shall exceed $100.00. All requests for petty cash funds or reimbursement of petty
expenditures shall be reconciled by a receipt or paid invoice, or a completed petty cash form.
Reimbursements and reconciliations of petty cash funds shall be made within 30 days of the
transaction.No personal checks shall be cashed out of the petty cash fund.
H. Real Property. Acquisition of real property is exempt from the competitive bidding
requirements set forth in this chapter. Upon approval of the city council, the city manager may
proceed to acquire real property through negotiation. Such negotiations 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 with prior city council approval, or except as may be approved by the
Washington State Department of Transportation on behalf of the City for road construction
projects.
I. Non-public work purchases or contracts for services, and public work purchases less than
$50,000. Non-public work purchases or contracts for services, and public work purchases of less
than $50,000 are not subject to a formal competitive bidding process. At least twice per year,the
City shall publish in a newspaper of general circulation a notice of the existence of vendor lists
for purchases of supplies, materials, goods or equipment, and solicit the names of vendors for the
lists. The City shall establish by resolution a procedure to ensure that a competitive price is
established and for awarding the contracts for the purchases to the lowest responsible bidder as
defined in SVMC 3.50.040(C). Immediately after the award is made, the bid quotations obtained
shall be recorded, open to public inspection, and shall be available by telephone inquiry. A
• contract awarded pursuant to this subsection need not be advertised.
Ordinance 07-004 Amending Purchase Code Page 5 of 10
3.40.060 Prohibited practices.
The following types of purchasing practices are hereby prohibited and may result in
disqualification of the bid:
A. Collusion Among Bidders. Any agreement or collusion among bidders or prospective
bidders to either buy or sell or fix prices in restraint of free competition. Such bidders may be
subject to exclusion from future bidding with the City when determined by the finance director to
be in the best interest 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 this section 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 vendor or contractor,or prospective 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"described in RCW 42.23.
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 said
materials have been declared surplus and disposed of as provided herein.
3.40.070 Disposition of City property.
City property shall be disposed of in the following manner:
A. Definition. "City property" as defined herein means any property or equity interest in real
or personal property held or owned by the City.
B. Surplus Property. The decision to declare property surplus shall rest solely with the city
council. Upon recommendation of the finance director, the City Council may declare property
surplus upon one or more of the following criteria:
1. The City has or anticipates no practical,efficient,or appropriate use for the property.
2. The purpose served by the property can be accomplished by use of a better, less costly,
or more efficient alternative.
3. The purpose served by the property no longer exists as determined by a change of
policy or practice.
4. The property is damaged, inoperable or obsolete and the cost of repairing the same is
uneconomical or impractical.
C. Sale of Property. Following passage of a resolution by the city council declaring property
surplus,the finance director is authorized to sell surplus property in the following manner:
1.Upon a finding by a department director that the property is surplus to City use, the
finance director shall provide notice of potential disposition to other City departments. If any
department director desires to acquire and use the proposed surplus property,the property may be
transferred to the requesting department director, or other authorized representative.
2. If no request for use of proposed surplus property is received, the finance director may
proceed to dispose of the same by public auction,bid, or other method of sale on terms deemed to
be in the best interest of the City.
Ordinance 07-004 Amending Purchase Code Page 6 of 10
3. Surplus personal property which is unsellable because of obsolescence, wear and tear,
or other reasons may be dismantled, if necessary, and sold as scrap. Surplus personal property
which has no marketable value or use may be discarded as refuse.
4. If the proposed surplus property is real property, notice of the proposal to declare the
same surplus shall be given to the city council.
5. If the city council declares the real property as surplus,the finance director shall secure
a market value appraisal of the property and proceed to sell the same by public auction or through
the formal bidding procedures the city manager deems to be in the best interest of the City.
D. Trade of Real Property. Real property may be traded under the following conditions:
1. If the finance director 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 finance director may invite prospective purchasers to tender consideration of cash and
property. Upon receipt of a bid tendering consideration in kind, and prior to accepting such bid,
the finance director shall make a report setting forth the benefits of such a transaction. This report
shall be made to the city council at a regular council meeting and the report shall be open to
public inspection.
2. Before accepting any bid containing in-kind consideration, an adequate appraisal must
have been made by a qualified independent appraiser.
3. If the city council finds that the bid containing the in-kind consideration has more
value or benefit to the City than any other bid submitted, the finance director may accept the bid
containing in-kind consideration.
E. Lease of Public Property. When specifically provided for in the City.budget, 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 interest 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 4. SVMC 3.45 to be amended. Spokane Valley Municipal Code Chapter 3.45 shall
be amended as follows:
Sections:
3.45.005 Definitions
3.45.010 Architectural and engineering services.
3.45.020 Procurement of architectural and engineering services.
3.45.030 Emergency and limitation.
3.45.005 Definitions.
"Architectural and engineering services" means professional services rendered by any
person, other than as an employee of the City, contracting to perform activities within the
scope of the general definition of professional practice in RCW 18.08, 18.43, or 18.96.
"City Manager"means the city manager or designee.
"Consultant" means any person providing professional services who is not an employee
of the agency for which the services are provided.
Ordinance 07-004 Amending Purchase Code Page 7 of 10
"Person" means any individual, organization, group, association, partnership, firm,joint
venture,corporation,or any combination thereof.
3.45.010 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 qualifications and data shall be maintained in
the office of the city clerk and be available for public inspection.
3.45.020 Procurement of architectural and engineering services.
A. For contracts up to $100,000 the City may choose to only select firms from the list, as
stated under 3.45.010 above, based on the information that has been submitted in response to the
annual publication.
B. For contracts over $100,000 the City shall, at least 15 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 proposal.
C. The City shall review the current statements of qualifications on file with the city clerk,
and/or the statements submitted in response to the notice as may be required by sections A and
B, and shall conduct discussions with one or more firms regarding anticipated concepts and the
relative utility of alternative methods for furnishing the requested services. The City may request
interviews and presentations from firms.
D. 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 includes:
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 another firm shall be
selected in accordance with the above process.
E. When the parties have reached a fair and reasonable price, and depending upon the amount
of the contract, the city council or city manager shall review the contract for authorization.
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
shall not be deemed an offer of contract nor shall any firm be entitled to recover any cost
associated with preparing a response.
3.45.030 Emergency and limitation.
Nothing contained herein shall limit or prevent the City from procuring architectural
or engineering services in the event of an emergency. This chapter shall be expressly
limited to the professional services identified herein.
Ordinance 07-004 Amending Purchase Code Page 8 of 10
Section 5. SVMC 3.50 to be amended. Spokane Valley Municipal Code Chapter 3.50 shall
be amended as follows:
Sections:
3.50.010 Small works roster.
3.50.020 Creation of separate rosters.
3.50.030 Maintenance of roster.
3.50.040 Use of roster.
3.50.010 Small works roster.
The city clerk shall maintain a small works roster 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. The 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 $200,000 or less. The small works roster is created and maintained pursuant to the laws
of the state of Washington as now enacted or hereafter amended.
3.50.020 Creation of separate 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.
3.50.030 Maintenance of roster.
The small works roster shall be maintained as follows:
A. At least once per year,the City shall publish in a newspaper of general circulation a notice
of the existence of the small works roster(s) soliciting the names of contractors for such roster(s).
The City shall place on the small works roster(s)the names of qualified contractors who respond
to the published notice with a request to be included on the roster(s). Thereafter, the City shall
add to the roster(s) the names of contractors who submit a written request and appropriate
records.
B. In order to be included on the 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.
3.50.040 Use of roster.
A.The City may utilize the small works roster when seeking to construct any public work or
improvement with an estimated cost including labor, material, supplies and equipment of
$200,000 or less.
B. Procedures shall be established for securing telephone, written, or electronic 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 defined in SVMC
3.50.040(D). 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. However, 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 the small works roster, the City shall award the
contract to the lowest responsible bidder; provided, 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.
Ordinance 07-004 Amending Purchase Code Page 9 of 10
In addition to price, the City shall take into account the following when determining the
"lowest 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.
D. The City may receive bids telephonically, in writing or 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 manager shall review the same and either offer.a contract to perform the public work or
submit the same to the city council for authorization.
E. The City shall post a list of the contracts awarded under SVMC 3.50 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.
Section 6. Severability. If any section, subsection, sentence or clause of this chapter is for
any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this
chapter.
Section 7. Effective date. This Ordinance shall be in full force and effect thirty (30) days
after publication of this Ordinance or a summary thereof occurs in the official newspaper of the City as
provided by law.
Passed this 10th day of April, 2007.
Mayor, Diana Wilhite
A
( ' I
City Clerk,Christin Ba bridge ft—
Approved As To Form:
_/
Office of the City Attorney
Date of Publication: Q 'f 2
Effective Date: — a -
Ordinance 07-004 Amending Purchase Code Page 10 of 10