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ORD 2004-05 CONTRACT APPROVALS OVER $10,000ORDINANCE NO. 2004-05 AN ORDINANCE of the City of Bainbridge Island, Washington, relating to contracts for services other than public works; amending Section 3.72.020; repealing Section 3.72.140; and adding a new Chapter 3.70 to the Bainbridge Island Municipal Code. THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. follows: Section 3.72.020 of the Bainbridge Island Municipal Code is amended as A. No formal or informal bidding shall be required for the purchase of supplies, materials, or equipment that are not part of a public works project. B. Staff shall continue on an ongoing basis to obtain the lowest practical price for supplies, materials, and equipment purchased pursuant to this section. C. Except as specifically provided in subsection D of this section, all purchases of supplies, materials and equipment equal to or in excess of $10,000 shall be by contract approved by the city council. Nothing in this subsection shall be construed to permit the division of a purchase into more than one phase or unit for purposes of avoiding this limitation. D. Any capital equipment that has been budgeted for in the city's then- current annual budget, the cost of which does not exceed $35,000 total, may be purchased by staff at auction or via an internet offering without prior council approval; provided, that staff has made a good faith determination that (1) the capital equipment may be acquired at auction or via the internet at a price lower than or competitive with the purchase price that substantially equivalent capital equipment would fetch on the conventional market; and (2) seeking prior council approval of the purchase would effectively exclude staff from bidding or otherwise participating in the auction or internet offering. For any capital equipment purchased pursuant to this subsection D, staff shall, within 20 days of such purchase, provide the city council with a summary report of the purchase, which report shall include the date, nature and mechanism of the purchase and the total purchase price paid for the capital equipment. Section 2. Section 3.72.140 of the Bainbridge Island Municipal Code is repealed. Section 3. follows: A new Chapter 3.70 is added to the Bainbridge Island Municipal Code as 947001 a031272151.0415tzrOl!.DOC (3/25/04) - 1- Chapter 3.70 CONTRACTS FOR SERVICES OTHER THAN PUBLIC WORKS 3.70.010 Applicability This chapter shall govern all city contracts for professional and nonprofessional services. 3.70.020 services. Contract requirements for professional and nonprofessional A. All professional and nonprofessional services to be performed for or on behalf of the city by persons other than city employees shall be by contract and shall be subject to the requirements set forth herein. B. Except as set forth in BIMC 3.70.030 or as otherwise governed by Chapter 3.72 BIMC, relating to public works, no formal or informal bidding shall be required for the purchase of professional or nonprofessional services. C. Staff shall continue on an ongoing basis to obtain the lowest practical price for professional and nonprofessional services pursuant to this section. D. All contracts for professional or nonprofessional services with a value of $10,000 or more a year, or with a value likely to meet or exceed $10,000 a year, shall be approved by the city council. Nothing in this subsection shall be construed to permit the division of'a contract for professional or nonprofessional services into more than one phase or unit for purposes of avoiding this limitation. E. Contracts for professional or nonprofessional services with a value of less than $10,000 a year, or with a value which is not likely to meet or exceed $10,000 a year, shall be approved by the mayor or designee; provided, that the funds for such contracts have been appropriated in the subject budget. If the funds for any such contract have not been appropriated in the budget, such contract shall be approved by the council, irrespective of the value of the contract. F. For purposes of this section, a contract shall be deemed to have a value of $10,000 or more if the contract on its face requires a city expenditure of $10,000 or more in any year, or if pursuant to the terms of the .contract, it is likely that the city's expenditures will meet or exceed $10,000 in a year. 947001103 ]272151.0415tzr01~.DOC (3/25/04) -2- 3.70.030 Contract procedures for architectural or engineering services. A.. Once each Calendar year, the public works director shall publish in the official newspaper, or a newspaPer of general circulation, an announcement stating the city's projected requirements for certain.categories or types of architectural and engineering services. The announcement shall state concisely the general scope and nature of the project(s) or work for which the services are required and shall provide the city's address. B. For the purposes of this section, "architectural and/or engineering services" shall mean professional services rendered by any persons, otherthan as an employee of the city, contracting to perform activities within the general definition of professional practice in Chapters 18.08, 18.43 and/or 18.96 RCW.' C. If the city requires any architectural and/or engineering services not contained in the city's annual announcement, the public works director shall publish additional announcements on each occasion. An additional announcement for architectural and/or engineering services shall be published in the official newspaper not less than two weeks prior to the closing date for receipt Of requests for qualifications. D.~ In the procurement of architectural and/or engineering services, the public works director shall encourage firms engaged in the lawful practice of their profession to submit annually a statement of qualifications and performance data. E. Firms responding to the annual or additional announcements shall submit to the public works director: 1. A proposed scope of services; 2. Performance data; and 3. A letter of interest that includes statements regarding the availability of the firm to complete the work within the stated time period, current references, the firm's insurance coverage and the firm's financial stability. F. The public works director shall evaluate current statements of qualifications-and performance data on file, together with those that may be submitted by other firms regarding the proposed project, and shall conduct discussions with one or more firms regarding anticipated concepts and the relative utility of alternate methods of approach for furnishing the required services. 9470011031272151.0415tzrOX ~. DOC (3/25/04) -3- G. The public works director shall select from the firms responding to the city's annual or additional announcements, based upon the criteria and guidelines established by the public' works director, the firm deemed to be the most highly qualified to provide the services required for the proposed project. H. After the public works director has determined the firm most highly qualified to provide the services required, the public works director shall negotiate a contract with that firm for the services at a price which the public works director determines to be fair and reasonable. In making the determination, the public works director shall take into account the estimated value of the services to be rendered, as well as the scope, complexity, and professional nature thereof. If the public works director is unable to negotiate a satisfactory contract with the firm selected at a price the director determines to be fair and reasonable, negotiations with that firm shall be formally terminated and the public works director shall select other firms in accordance with this section, until an agreement is reached or the process is terminated. I. Once the public works director has negotiated a satisfactory contract for architectural and/or engineering services, the city .council shall review and approve the contract. J. The city shall not be required to comply with this section when an emergency situation exists. In cases of emergency, contracts for architectural and/or engineering services may be awarded pursuant to the procedures set forth in BIMC 3.72.130. Section 3. This ordinance shall take effect and be in force five days from and after its passage, approval and publication as required by law. PASSED by the City Council this 24th day of March; 2004. APPROVED by the Mayor this 25th day of March, 2004. ATTEST/AUTHENTICATE: S~~per~, 'Ci~ Darlene Kordonowy, Mayor 9470011031272151.0415tzr01~.DOC (3/25/04) -4- FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO: 2004-05 February 12, 2004 March 24, 2004 March 31, 2004 April 5, 2004 947001103 ] 272151.0415tzr0~:DOC (3/25/04) -5-