Ordinance 18-028 Bidding regs amended CITY OF SPOKANE VALLEY
SPOKANE COUNTY,WASHINGTON
ORDINANCE NO. 18-028
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON, AMENDING SVMC 3.40.010 RELATING TO FAILING TO RECEIVE A
RESPONSIVE BID FOR A PUBLIC WORK PROJECT IN EXCESS OF $300,000; AMENDING
SVMC 3.41.040 RELATING TO FAILING TO RECEIVE A RESPONSIVE BID FOR A PUBLIC
WORK PROJECT BELOW$300,000; AND OTHER MATTERS RELATING 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 in 2015; and
WHEREAS, the City has determined that there are times when, after compliance with all legal
requirements for soliciting proposals for a public work project,the City does not receive any bids. Rather
than continuing to put out unsuccessful bid requests, the City should be able to more efficiently engage a
contractor at that point to get the project done; and
WHEREAS, RCW 35.23.352(1)allows for this type of circumstance, stating"If no bid is received
on the first call the council or commission may readvertise and make a second call, or may enter into a
contract without any further call or may purchase the supplies,material or equipment and perform the work
or improvement by day labor."
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 SVMC
3.40.010 and SVMC 3.41.040 relating to negotiating a contract in circumstances where the City fails to
receive a responsive bid for a public work project.
Section 2. Amending SVMC 3.40.010. SVMC 3.40.010 is amended 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 arc 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.
Ordinance 18-028 Amending SVMC 3.40.010 and SVMC 3.41.040 Page 1 of 4
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
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.
Pursuant to RCW 39.08.010, for certain public works and works by contract on which prevailing
wage is required to be paid, at the contractor's option, the City may, in lieu of requiring payment
and performance bonds, retain a percentage 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. This option is only available for contracts at the amount set forth in RCW 39.08.010 as
adopted or hereafter amended. The amount retained by the City shall be the amount as set forth in
RCW 39.08.010, Retainage in lieu of payment and performance bonds may only be used by the
City for contracts when 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. If no proposals are received, City staff shall not be required to resubmit for
additional proposals, but may negotiate with any available contractor.
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.
Section 3. Amending SVMC 3.41.040. SVMC 3.41.040 is amended as follows:
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
Ordinance 18-028 Amending SVMC 3.40.010 and SVMC 3.41.040 Page 2 of 4
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. If no proposals are received, City staff shall not be required to resubmit for additional
proposals, but may negotiate with any available contractor.
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 Chapter 3.41 SVMC 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.
Pursuant to RCW 39.08.010, for certain public works and works by contract on which prevailing
wage is required to be paid, at the contractor's option, the City may, in lieu of requiring payment
and performance bonds, retain a percentage 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. This option is only available for contracts at the amount set forth in RCW 39.08.010 as
adopted or hereafter amended. The amount retained by the City shall be the amount as set forth in
RCW 39.08.010. Retainage in lieu of payment and performance bonds may only be used by the
City for contracts when the requirement of bonds substantially increases the cost of the contract.
Section 4. Severability. If any part of SVMC 3.40.010 or 3.41.040 is declared unenforceable, it shall not
affect the remainder.
Section 5. Effective Date. This Ordinance shall become five days after the City shall publish the
Ordinance,or a summary thereof, in the official newspaper of the City.
Ordinance 18-028 Amending SVMC 3.40.0I0 and SVMC 3.41.040 Page 3 of 4
Adopted this 18th day of December, 2019.
ATTES City�rf Ss
, Valley
(7 'k / — � eitWiel ,
Kristine Bainbridge, City Clerk L.R. Hig_MAW
VV
Approved as to Form:
i S
O icetl e Cir, A rrney
Date o Publication:/,2 -62/ ; _ebic9
Effective Date: j 2i 1 22O,,S
Ordinance 18.028 Amending SVMC 3.40.010 and SVMC 3.41.040 Page 4 of 4