HomeMy WebLinkAbout2012-006RESOLUTION NO. 2012-006
WHEREAS, adopted Resolution 2010-015 which approved a set of , a
procedures and commitment authority on _ • •
WHEREAS, the City desires to update its purchasing procedures to be consistent with the
requirements of the Washington State Auditor's Office; and
WHEREAS,desires to update•Authorization Summary to be
requirementsconsistent with the of -Auditor's Office.
ContractSection 1. Purchasing Procedures & Contract Authorization Summary Approved.
The City Council hereby approves the Procedures (Exhibit A), and
, • :revised_
AP OV1','D by the Mayor Pro Tem and City Council of the City of Arlington this
— day of , I , . a .2012.
CITY OF ARLINGTON
r � ,�-
Barbara Tolbert
Mayor
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Banfielct°I
St r ell .1. t: C'1 C
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Exhibit A
CITY OF ARLINGTON
PURCHASING PROCEDLYCLE
Sections:
I. Purpose.
11. Policy statement.
III. Definitions.
IV. General provisions.
V. Purchase of materials, supplies or equipment.
VI. Public works projects.
VIL Services.
VIII, Interlocal joint purchasing agreements.
IX. Real property acquisition.
1. Purpose.
This policy is intended to direct the purchase of goods and services at a reasonable cost, using an
oVa-fair documented and com(ietitive Corocess whenever reasonable and (i,,ossible. The integrit�v
efficiency, and effectiveness • Arlington's procurement functions are critical elements of sound
••
11. '• statement.
A. The city desires a fair and •f" process :• procurement •: goods and services that is free
from the potential for bias and conflict • interest. In addition, the city • consistent
and appropriate practices • solicitations and contracting. ♦ procurements • goods and
services shall provide the city with the best quality and best value. All purchases are to be
made within budgetary limitations and for the purpose of the goals and objectives
approved in the city's budget. Any purchase made that is not within budgetary limits and
the City's commitment authority shall be pre -approved through a budget amendment
process. All purchases made by the city shall ultimately be approved by the city council
through the voucher approval process.
B. All City • Arlington departments shall make a good faith effort to purchase ••1 within
the city when they are available and suitable to city needs at a price that is competitive.
Departments are expected to procure goods and services that are of high quality and that
perform for their intended purpose, and to use good •• during the procurement
process. Items will be purchased locally if they are less than $2,500 and within 10% of
the lowest price available at the time quotes are received. Items that are valued over
$2,500 will • purchased • a competitive basis.
C. The finance department is charged with developing administrative procedures to
implement this •• Procedures should ensure the fiscal responsibility of the city in
expending resources for goods and services for city operations. The procurement
procedures of the city shall be based on guidelines provided in the Revised Code of
Washington, by the State Auditor's Office, and by Municipal Research Services Center,
D. The purchasing procedures of this policy govern the purchase of supplies, materials and
equipment, nonprofessional and professional services, and public works contracts. These
policies .i . small works•- process toaward public •contracts. The small
works rosterprocedures established • . by the city, pursuant • '
3 5A.40.2 10 and Chapter 3 9.04 RCW. Leases of equipment or other personal property
shall follow procedures for purchase of goods, with the aggregate of lease payments used
in lieu of purchase price. Purchase • lease of real estate, franchise agreements, a
intergovernmental or interlocalagreements will be entered into in accordance
E. Each City Department purchases specialtyand items that
are purchased just in time to make necessary repair or to keep equipment and amenities in
safe a •••• working order. All department directors will make ••ta faith effort• utilize
a central purchasing for purchases of consumable good and reoccurring purchases. This
will enable by combining orders and purchasing in bulk on in larger
quantities when possible.
A. "Architectural and engineering services" means professional services rendered by any
person, other than a city employee, to perform activities within the scope of the
professional practice of • - 'c is ' professional practice •
engineering and land(Chapter'CW), and/or professional practice o
landscape architecture (Chapter 18.96 RCW).
B. • Authorization outlines the levels at which managers,directors, 1
Mayorthe ay commit the City to . contract. Attached as ExhibitB.
C. "Formal competitive bid" is the process of advertising and receiving sealed written bids
from perspective vendors. The selection of the vendor is primarily based on the lowest
cost from a responsible vendor.
D. "Informal competitive quotes" are price quotes from vendors that are obtained using a
variety of mediums• • or writing. Results must be f•
The selection of the vendor is primarily based on the lowest cost from a responsible
vendor.
E. "Interlocal agreements" are the exercise of governmental powers in a joint or cooperative
undertaking with another public agency.
F. "Life cycle cost" means the total cost of an item to the city over its estimated useful life,
including costs of selection, acquisition, operation, maintenance, and where applicable,
disposal, as far as these costs can reasonably be determined, minus the salvage value at
the end of its estimated useful life.
G. "Nonprofessional services" are services that are purchased by the city for which the
contractor receives specific instructions and guidance from the city and does not meet the
definition of professional services, architectural and engineering services, or public works
projects. Examples include machine repair, debt collection services, temporary service
agencies, credit card services, equipment service agreements, auctioning services,
delivery services, inspections, advertising, etc.
Purchasing Policy 2
Revised 6-18-12
Purchasing Policy 3
Revised 6-18-12
ii. Where the size of the contract makes it probable that administrative
change order authority will be quickly exhausted, the city council may,
upon recommendation • the mayor, extend the aggregate limits of
subsection (D)(a)(iii) of this section upon award of the particular contract.
E. Signature Authority. The Mayor may delegate his/her signature authority to • city
employees (City Administrator, Department Director, Division Manager) as deemed
appropriate.
Purchasing Policy 4
Revised 6-18-12
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requested or if there are fewer than three replies, an explanation shall be placed in
the procurement file.
b. Whenever possible, quotes will be solicited on a lump sum or fixed unit price
basis.
c. At the time quotes are solicited, the city representative shall not inform a vendor
of any other vendor's quote.
d. A written record shall be made by the city representative of each vendor's quote
on the materials, supplies, or equipment, and of any conditions imposed on the
quote by such vendor.
e. All of the quotes shall be collected and presented at the same time to the
appropriate designee as appropriate for consideration, determination of the lowest
responsible vendor and award of purchase.
f. Whenever there is a reason to believe that the lowest acceptable quote is not the
best price obtainable, all quotes may be rejected and the city may obtain new
quotes or enter into direct negotiations to achieve the best possible price. In this
case, the department shall document, in writing, the basis upon which the
determination was made for the award.
g. All purchases of over $2,500 will have a completed and approved Capital Outlay
Form submitted to the finance department prior to the purchase of materials,
supplies, or equipment is executed.
Formal Competitive Bid — Materials, Supplies, or Equipment over $7,500
a. General. Unless otherwise specifically approved by the city council, all contracts
relating to the purchase of materials, equipment, or supplies shall be in
accordance with the Commitment Authority.
b. Invitation for Bids. An invitation for bids shall be issued which shall include the
specifications and the contractual terms and conditions applicable to the
procurement.
c. Public Notice. Public notice of the invitation for bids shall be published at least
once in a newspaper of general circulation within the city, not less than 13
calendar days prior to the date set forth therein for the opening of bids, unless for
good cause shown, the city council authorizes a different period of time. The
public notice shall state the date and time of bid opening. Bids not received by the
date and time stated for bid opening will not be accepted or considered.
d. Bid Opening. Bids shall be opened publicly and recorded at the time and place
designated in the invitation for bids.
e. Withdrawal of Bids - Cancellation of Awards. Bids may be modified or the bid
may be withdrawn by written notice received in the office designated in the
invitation for bids prior to the time set for opening. After bid opening, withdrawal
of bids shall be permitted only to the extent that the bidder can show by clear and
convincing evidence presented in a sworn affidavit or declaration submitted no
later than 5:00 p.m. on the first business day after bid opening, that a clerical
mistake was made and not a mistake in judgment, and the bid price actually
intended. All decisions to permit the withdrawal of bids after bid opening, or to
cancel awards or contracts based on bid mistakes, shall be made by the mayor
after consulting with legal counsel.
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f. Award. The City Council shall award purchases for amounts greater than or equal
to the limits as identified in the Commitment Authority. The award of bid shall be
made to the lowest responsible bidder whose bid meets the specifications and
evaluation criteria set forth in the invitation for bids. The city may reject all bids
at its discretion.
g. All purchases of over $2,500 will have a completed and approved Capital Outlay
Form submitted to the finance department prior to the purchase of materials,
supplies, or equipment.
E. Lowest Responsible Vendor. The following factors, in addition to price, may be taken
into account by the city in determining the lowest responsible vendor; these criteria
shall also apply in selecting products or services either offered with, or associated
indirectly with, City programs or facilities:
a. Any preferences provided by law to local products and vendors;
b. The ability, capacity, and skill of the vendor to perform the contract;
c. The character, integrity, reputation, judgment, experience, and efficiency of the
vendor;
d. Whether the vendor can perform the contract within the time specified;
e. The quality of performance of previous contracts or services;
f. The previous and existing compliance by the vendor with laws relating to the
contract;
g. Such other information as may be secured having a bearing on the decision to
award the contract.
F. Life Cycle Costing. In considering the purchase of materials, equipment, supplies,
whenever there is a reason to believe that applying the "life cycle costing" method
quote evaluation would result in the lowest total cost to the city, first consideration
shall be given to purchases with the lowest life cycle cost which complies with the
specifications.
& Recycled Products. The city shall also seek to maximize purchase of products usin
recycled materials and products suitable for recycling, unless the purchase will res
in an unreasonable increase in price or degradation of quality or performance over
comparable products. I
VI. Public works projects.
A. Purchasing Procedures. Procedures for any public work or improvement shall be
governed by RCW 35.23.352. At such time as the City's population exceeds twenty
thousand, purchases shall be governed by RCW 35.22.620.(RCW 35A.40.210) Cost
for a public works project includes all amounts paid for materials, supplies,
equipment, and labor on the construction of that project which is inclusive of sales
tax, unless exempted by law.
B. Purchasing Limitations. The mayor may authorize the purchase and execution of
public works projects equal to or less than the dollar threshold for small works
projects as provided under RCW 39.04.155 as amended.
C. Competitive Bids. "Craft" or "trade" means a recognized construction trade or
occupation for which minimum wage categories are established by the Department•
Labor and Industries of the State of Washington in the locality of the city's projects•
purchases.
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a. Projects for • craft • multiple crafts with a reasonably anticipated price
equal to or less than the dollar thresholds as provided under RCW 35.23.352, as
amended, do not require the use of competitive quotes or bids.. All purchases
require an executed •
b. Projects for single craft or multiple crafts with a reasonably anticipated price
• than the r• thresholds as provided under RCW 35.23.352, as amended,
up to the limits set forth by RCW 39.04.155 as amended shall either use the small
• • or a formal competitive bid procurement process. All purchases
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small works roster to assure that a competitive price is established and to award
contracts to the lowest responsible bidder as follows:
i. A contract awarded from a small works roster need not be advertised.
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 includet
in the invitation. This paragraph does not eliminate other requirements for
architectural or engineering approvals as to quality and compliance with
building codes.
ii. Quotations may be invited from all appropriate contractors on the
appropriate small works roster. As an alternative, quotations may be
invited from at least five contractors on the appropriate small works roster
who have indicated the capability of performing the kind of work being
contracted, in a manner that will equitably distribute the opportunity
among the contractors on the appropriate roster. If the estimated cost of
the work is $200,000 or more but less than or equal to the dollar threshold
for small works projects as provided under RCW 39.04.155, as amended,
the city may choose to solicit bids from less than all the appropriate
contractors on the appropriate small works roster but must also notify the
remaining contractors on the appropriate small works roster that
quotations on the work are being sought. The city has the sole option of
determining whether this notice to the remaining contractors is made by:
1. Publishing notice in a legal newspaper in general circulation in the
area where the work is to be done;
2. Mailing a notice to these contractors; or
3. Sending a notice to these contractors by facsimile or other
electronic means.
*ii. For purposes of this policy, "equitably distribute" means that the city may
not favor certain contractors on the appropriate small works roster over
other contractors on the appropriate small works roster who perform
similar services. At the time bids are solicited, the city representative shall
not inform a contractor of the terms or amount of any other contractor's
bid for the same project.
iv. A written record shall be made by the project manager of each contractor's
bid on the project and of any conditions imposed on the bid. Immediately
after an award is made, the bid quotations obtained shall be recorded, open
to public inspection, and available by telephone inquiry.
v. At least once every year a list of the contracts awarded under this process
are to be furnished to the city council and made available to the general
public. 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.
EDetermining Lowest Responsible Bidder. Where bidders have not been prequalified,
the city shall award the contract for the public works project to the lowest responsible
bidder; provided, all bids may be rejected and the city may call for new bids.
F. Cancellation of Invitations for Quotations or Bids. An invitation for quotations or
bids may be canceled at the discretion of the department director. The reasons shall
be made part of the contract file. Each invitation for quotations or bids issued by the
city shall state that the invitation may be canceled. Notice of cancellation shall be sent
to all parties that have been provided with a copy of the invitation. The notice shall
identify the invitation for quotations or bids and state briefly the reasons for
cancellation.
G Limited Public Works Process. The city may use the limited public works process to
award public works proj ects as provided under RCW 3 9.04.15 5, as amended.
H Formal Competitive Bid. For public works not using a small works roster, the formal
competitive bid process, as defined by RCW, shall be used.
1. Bid Deposit, Performance Bond and Noncollusion Affdavit for Public Works
Improvement Projects. Whenever competitive quotes or bids are required, a bidder
may be required make a deposit in the form of a certified check or bid bond in an
amount equal to not less than five percent of the total bid, which percentage shall be
specified in the call for bids. As part of any bid submitted, the bidder shall be require4
to warrant that the bid is a genuine bid, and that he/she has not entered into collusion
with any other bidder or any other person. All public works contractors shall furnish a
performance bond in an amount equal to the total amount of the contract and an
executed and notarized noncollusion affdavit on a form approved by the city attorney.
In lieu of a performance bond on contracts of $35,000 or less, per RCW 39.08.010, a
contractor may choose to have 50 percent of the contract retained for a period of 30
days after the date of final acceptance.
VM Contracts and Agreements for Services.
A. Purchasing Limitations. Purchase limitations apply to the cost related to the
acquisition of services to fill a specific business need. Cost is inclusive of any
required sales tax and related expenses.
i. All initial agreements with governmental agencies require council approval;
annual renewal or extension of existing contracts and agreements require the
mayor's approval.
Contracts and Agreements under $20,000 can be executed by department
directors or designee; and contracts/agreements above $20,000 can be
executed by the Mayor or designee.
It. On -Call Service Contracts. On -call service contracts will be procured with the
processes identified in subsection C below. Individual task orders of on -call servic*
contracts shall not exceed $50,000.
51 �_§ f_
i. Architectural, Landscape Architectural, and Engineering Services Contracts.
Procedures set forth in Chapter 39.80 RCW shall be followed for contracts for
architectural and engineering services, as defined in RCW 39.80.020.
1. Roster. Annually the city will publish in advance the anticipated city's
requirements for architectural, landscape architectural, and engineering
Purchasing Policy 10
Revised 6-18-12
services and its acceptance of statements of qualifications for
contractors interested in providing these services.
2. Contracts Less Than $ 100,000. Contracts that have an estimated cost
of less than $100,000 can be procured using an informal request for
qualification process. This process requires the city representative to
develop a written scope of the project and any criteria used to select
the service provider and then select a qualified contractor from the
city's architectural, landscape architectural, and engineering service
roster. If the city representative does not choose to use the appropriate
roster, then a formal request for qualification process must be
followed.
3. Contracts Greater Than $ 100,000. Contracts that have an estimated
cost in excess of $100,000 must use a formal request for qualification
(RFQ) process. The development of an RFQ along with the proper
public notification shall be made in accordance with procedures
adopted by the finance department in the it interest of the city;
provided, however, that the mayor may in the following circumstances
waive the RFQ process for contracts greater than $100,000, and allow
the acquisition of services from the city's architectural, landscape
architectural and engineering services roster:
a. It is deemed in the best interest of the city to expedite the
acquisition of services; or
b. It can be demonstrated that there are sufficient consultants on
the roster that possess the required qualifications to perform the
scope of work; or
c. A consultant on the city's roster has previously provided
satisfactory service to the city, has previously provided
services related to the specific project, and has the
qualifications to perform the scope of work.
4. Contract Required. A contract is required to purchase architectural,
landscape architectural, and engineering services.
Professional and Nonprofessional Services (Services which are not
Architectural, Landscape Architectural, and Engineering Services).
I . Contracts Less Than $100,000. Contracts that have an estimated cost
of less than $ 100,000 can be procured using an informal request for
proposal process. This process requires the city representative to
develop a written scope of the project and any criteria used to select
the service provider. The city representative will use this information
when selecting the contractor to provide the services. Multiple
proposals are optional and at the discretion of the department director.
If multiple proposals are used to make a selection, a standard process
must be used for obtaining all proposals.
2. Contracts in Excess of $100,000. Contracts that have an estimated cost
in excess of $100,000 shall be procured using a formal request for
proposal (R-FP) process. The development of an RFP along with the
Purchasing Policy 11
Revised 6-18-12
proper public notification shall be made in accordance with procedures
adopted by the finance department in the best interest of the city.
3. Contract Required. A contract is required to purchase professional and
nonprofessional services.
D. Sole Source Procurement. A contract for the provision of services may be awarded
without complying with the bidding requirements • this r• when the department
director determines in writing, subject to the approval of the mayor, after conducting
a good faith review of available resources, that there is only one source of the
required materials, supplies, or equipment. The department director or his/her
designee shall conduct negotiations, as appropriate, as to price, terms, and delivery
time. To comply with RCW 39.04.020, a record of sole source procurement shall be
recorded with the County Auditor that lists each contractor's name, the amount and
type of each • and a listing of the itern(s) procured under each contract.
VIII. • • purchasing .:•
A. Cooperative Purchasing. The city may enter into interlocal governmental cooperative
purchasing arrangements with other public agencies similarly authorized •- RCW
39.34.030 when the best interests of the city of Arlington would be served thereby.
Any cooperative purchasing agreement shall set forth fully the purposes, powers,
rights, objectives and responsibilities of the contracting parties and shall be governed
• the requirements • state law in regard to competitive bidding, when applicable.
The competitive bid process of the original jurisdiction shall substitute for
Arlington's. ♦ • • purchasing agreements shall be presented to the city
• for prior approval.
IX. Real property acquisition.
A. Real Property - Mayor's Acquisition Authority. The mayor or designee is authorized,
in the following instances, to accept by gift or acquire dedications, easements, rights -
of -way, fee estates or other interests in real property for use by or on behalf of the city
or any department of the city:
i. Minor Acquisitions. Any such acquisition where the estimated value is less
than $ 10,000.
ii. All other real property acquisitions will be submitted to the council for
approval.
B. Real Property Mayor's Leasing Authority.
i. The mayor or designee is authorized to execute leases of real property on
behalf of the city where the to of the lease does not exceed one year and the
consideration does not exceed $ 10,000 per year as budgeted by the council.
ii. A lease that exceeds the limits stated in subsection (B)(i) of this section, shall
be submitted to the council for approval.
Purchasing Policy 12
Revised 6-18-12
EXHIBIT B
CITY OF ARLINGTON CONTRACT AUTHORIZATION SUMMARY
Assumes all expenditures are included in adopted operating and capital improvement budgets. If the expenditure is not adopted in
operating and capital improvement budgets, Council authorization of budget amendment is required pn'or to contract.
ICONTRACT DOLLR BID PROCESS SIGNATURE COUNCIL TYPE I LIMIAT I AUTHORITY APPROVAL
1Wn11ff9ky=
"Public Works -- single trade or craft
Department Director
Tublic Works --_sing�le ir—ade o_r craft
ver $20,000
!Yes
,Public Works -- multi trade or craft
under $30,000
iNo
C irector
Tublic Works -- multi trade or craft
ver $30,000
-Small Works Roster
Small Works Roster up to $30,000 under $30,000 No Departhnent Director No
Small Works Roster from $30,000 up to
$300,000 over $30,000 No IMayor Yes
Materials. SUDDlieS. eouinment
�'Materials, supplies, equipment
d
between $3,000 and
$7,500
o; Requires a
W,
;Department Director
i�Materials, supplies, equipment
��=Mayor*
with vendor list
I
with government bid
-- ---- - -----
M ayor*
Maintenance & non-professional services I
No; anything over
$3,000 requires a
Maintenance & non-professional services
under $30,000 minimum of 3 quotes
Department Director
No
Maintenance & non-professional services
over $30,000 Yes
Mayor
Yes
* All capital purchases over $500 require
approval of Capital Outlay Request form
by Finance Director Executive Department 2
EXHIBIT B
CITY OF ARLINGTON CONTRACT AUTHORIZATION SUMMARY
CONTRACT
TYPE
=am
DOLLIMIT I LAR BID PROAHOUREY I
CESS I SIGNATI COUNCIL
UTRITAPPROVAL
Consulting / professional on -call services
Legal, human
(legal, human resources, design,
resources - ongoing
development review services)
contracts;
not to exceed $50,000
Development review,
design services -
from consultant
roster
Mayor
Yes
up to $20,000 per
instance
No
Department Director
No
over $20,000 per
instance
No
I Mayor
Yes
Consulting professional services
(comprehensive planning, feasibility
under $20,000
Chosen from
studies, preliminary design)
consultant roster
De2artment Director
No
Chosen from
over $20,000
consultant roster
Mayor
Yes
Consulting / professional services
Chosen from
(construction projects)
under $20,000
consultant roster
Department Director
No
Chosen from
over $20,000
consultant roster
Mayor
Yes
* All capital purchases over S500 require
approval of Capital Outlay Request form
EXHIBIT B
CITY OF ARLINGTON CONTRACT AUTHORIZATION SUMMARY
Assumes all expenditures are included in adopted operating and capital improvernent budgets. If the expenditure is not adopted in
operating and capital improvement budgets-, Council authorization of budget amendment is required p I -jior to contract.
CONTRACT
TYPE
WfffflliN�
DOLLAR BID PROCESS SIGNATURE COUNCIL
LIMIT I AUTHORITY APPROVAL
Less than 5% of the
contract AND less
Department Director &
Change Orders than $20,000
I N o
City Administrator
No
-
More than 5% of the
contract OR more
Change Orders than $20,000
No
IMayor
Yes
Cumulative Chamse Orders shall not exceed 10% of the total cost of a project without Council approval.
lChanue Orders will be reported to the City Administrator and (-'itN Council montlih on all projects with value over S20.000
Mitigation Funds
by Council if not
included in an
on funds lall funds Isee bid limits Isee bid limits
No; unless specified
in grant
Approval to apply for grant
all grants No
Mayor
requirements
Approval to accept grant
all grants NT AD
Mayor
Yes
* All capital purchases over $500 require
approval of Capital Outlay Request form
by Finance Director Executive Department