ORD 2003-23 PUBLIC WORK PROCEDURES ORDINANCE NO. 2003-23
AN ORDINANCE of the City of Bainbridge Island, Washington,
relating to the procedures for public work or improvemem
contracts or purchases by the city; amending Sections 3.72.010,
3.72.020, 3.72.050, 3.72.060, 3.72.070, 3.72.080, 3.72.100,
3.72.110, 3.72.120 and 3.72.130; adding a new Section
3.72.140; and repealing Sections 3.72.030, 3.72.040, 3.72.090
of the Bainbridge Island Municipal Code.
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DO ORDAIN AS FOLLOWS:
Section 1. The Title of Chapter 3.72 of the Bainbridge Island Municipal Code is
amended as follows:
Purchasing and Public Works Procedures
Section 2. Section 3.72.010 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.010 Applicability.
This chapter shall govern the procedures for all public works projects
and purchases by the city. For purposes of this chapter, the term "public
works" shall include all work, construction, building, alteration, repair or
improvement other than ordinary maintenance, executed at the cost of the city,
or which is by law a lien or charge on any property therein, except when such
work is performed pursuant to a contract exempted by state law from the public
works process. For purposes of evaluating the costs of public works projects
hereunder, such costs shall include the costs of all materials, supplies,
equipment and labor associated with the public works project. For purposes of
this chapter, "public works director" shall mean the director of public works or
the director's designee.
Section 3. Section 3.72.020 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.020 Purchases.
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.
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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 below, all
purchases 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 twenty
(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 4. Section 3.72.030 of the Bainbridge Island Municipal Code is repealed.
Section 5. Section 3.72.040 of the Bainbridge Island Municipal Code is repealed.
Section 6. Section 3.72.050 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.050 Purchase by government contract.
Nothing in this chapter shall be construed as limiting or otherwise
compromising the city's authority to contract with the state or any other
municipality, special purpose district or political subdivision for the right to
purchase, under the same terms and conditions negotiated by the other entity,
any supplies, materials, equipment or services for which the other entity has
performed a formal or informal bidding process.
Section 7. Section 3.72.060 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.060 Public works - Limitations on work by city employees.
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A. As limited by subsection B of this section, the city may have
public works performed by city employees in any budget period; provided, that
the collective cost of such public works shall not exceed ten percent of the
public works construction budget, including any amount in a supplemental
public works construction budget, for that budget period. Once the city has
exhausted the maximum percentage rate set forth herein for employee-
performed public works projects in any budget period, all further public works
projects for that budget period must be performed by contract pursuant to the
applicable bidding process set forth in this chapter.
B. In addition to the percentage limitation provided in subsection A
of this section, the city shall not have city employees perform a public works
project if the cost of the project exceeds $50,000 if more than one craft or trade
is involved with the project, or in excess of $30,000 if a single craft or trade is
involved with the project or the project is street signalization or street lighting.
C. Effective January 1, 2010, the craft limits set forth in this section
shall be increased to $40,000 for single crafts and $65,000 for multiple crafts.
D. Nothing in this section shall be construed to permit the division of
a public works project into units of work or classes of work to avoid the
restriction on work that may be performed by day labor on a single project.
Section 8. Section 3.72.070 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.070 Public works - Formal bids.
Whenever the estimated costs of a public works project, including
materials, supplies, equipment and associated labor, will exceed the limitations
set forth in RCW 39.04.155, as now existing or as hereafter amended, the same
shall be done by contract awarded pursuant to the following formal bid
procedure:
A. Staff shall prepare bid specifications for completion of the public
works project upon prior authorization by the city council.
B. Calls for sealed bids shall be published in the official newspaper,
or a newspaper of general circulation most likely to bring responsive bids, at
least 13 days prior to the last date upon which bids will be received.
C. Calls for sealed bids will be posted in the same manner as
ordinances.
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D. Calls for bids shall contain the following information:
1. The general nature of the work;
2. A statement that the plans and specifications for the work
are on file and available for public inspection at the city hall;
3. Instructions that bids must be sealed and filed with the
city before a specified date;
4. Instructions that bids must be accompanied by a bid
deposit of at least five percent of the amount of the bid in the form of a cashier's
check, postal money order or surety bond made payable to the city. Calls for
bids shall specify that no bids will be considered without the required deposit.
E. Bids shall be opened on the date and time and at the place
specified in the bid specifications, advertisements and public notices.
F. Staff shall prepare bid tabulation sheets and shall recommend that
the contract be awarded to the bidder determined to be the lowest responsible
bidder who meets the terms of the specifications, conditions and qualifications
of the call for bids. Alternatively, staff may recommend the rejection of any or
all bids received.
G. The city council shall review the bids, specifications and related
materials, together with the staff recommendation, and may award the contract
to the lowest responsible bidder. Alternatively, the city council may reject any
or all submitted bids and may make a further call for bids in the same manner as
the original call.
H. If no bids are received on the first call, the city council may elect
to re-advertise and make a second call for bids or may enter into a contract
without any further call or may perform the work or improvement by day labor.
I. Amendments or change orders.
1. Amendments or change orders to contracts requiring City
Council approval under this chapter may be administratively approved by the
Mayor if the changes are:
a. Within the scope of the original contract;
b. Consistent with an initial bid process, if any;
c. Executed in writing;
d. Within the budgeted amount for the projects; and
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e. An increase of the contract award amount (CAA)
as follows:
Contract Award Amount Percentage Increase Limits
in CAA (the greater
of:)
Less than $100,000 30% or minimum Min $ 0
Max $ 30,000
$100,000 to $500,000 20% or minimum Min $ 30,000
Max $100,000
Greater than $500,000 10% or minimum Min $100,000
Max $ 250,000
2. The value of all change orders to a single contract shall be
aggregated. When any single change order, or combined change orders to the
same project or single purchase exceeds the value limit, the change must be
approved by City Council, except in the following instances:
a. On service contracts used to accomplish an ongoing City
program as opposed to completing a short term project or purchase, change
order rules, including the aggregate rule, shall be applied on an annual basis.
b. Where the size of the contract and the exhausting of
change order authority make further change order authorization impractical, the
City Council may, upon recommendation of the Mayor, extend the aggregate
limits of subsection I. 1. for specific contracts.
c. The public works director shall provide reports on public
works project change orders to the City Council during the normal budget
process..
3. A work change directive may be used to:
a. Authorize and direct work that will result in an increase in
contract price within the administrative authority of the Mayor as provided in
subsection I. 1. for specific contracts. Work change directives that affect the
contract price shall be incorporated into a change order.
b. Authorize and direct work that will result in an increase in
contract price in excess of the administrative authority of the Mayor as provided
in subsection I 1. where unforeseen conditions necessitate an immediate change
to avoid a contractor's claim against the City for delays. The work change
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directive shall be incorporated into a change order and presented to the City
Council as soon thereafter as practicable.
c. Authorize and direct emergency work that may result in
an increase in contract price in excess of the administrative authority of the
Mayor as provided in subsection I 1, where public health, safety and welfare are
endangered. The work change directive shall be incorporated into a change
order and presented to the City Council as soon thereafter as practicable.
The City Council will be notified of work change
directives issued in excess of the administrative authority of the mayor as soon
as practicable.
Section 9. Section 3.72.080 of the Bainbridge Island Municipal Code is
amended as follows:
3.72.080 Public works--Small works roster established.
A. A single general small works roster shall be established. The
small works roster shall be maintained by the public works director and shall
consist of all responsible contractors who have requested to be on the roster, and
who, where required by law, are properly licensed to work in the state and in
the city, and who keep current records of applicable licenses, certifications,
registrations, bonding, insurance or other appropriate matters on file with the
public works director.
B. At least once each year, the public works director shall publish in
the official newspaper or a newspaper of general circulation within the city a
notice of the existence of the small works roster. The notice shall solicit the
names of contractors for the small works roster.
C. Responsible contractors shall be added to the small works roster
at any time they submit to the public works director a written request to be
added to the small works roster and provide copies of the records required
herein.
Section 10. Section 3.72.090 of the Bainbridge Island Municipal Code is repealed.
Section 11. Section 3.72.100 of the Bainbridge Island Municipal Code is amended as
folloWs:
3.72.100 Public works-- Small works roster use.
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As permitted pursuant to this chapter, and as an alternative to the
procedures set forth in BIMC 3.72.060 and 3.72.070, a small works roster and
award of a contract thereunder may be used for public works projects where the
estimated cost of such projects does not exceed the amount authorized by RCW
39.04.155, as now existing or as hereafter amended.
Section 12. Section 3.72.110 of the Bainbridge Island Municipal Code is amended as
follows:
Section 3.72.110 Public works - Small works roster procedure.
Whenever the city uses the small works roster for a public works project
with an estimated cost below the small works roster threshold authorized by
RCW 39.04.155, as now existing or hereafter amended, the city shall follow the
following procedure:
A. To ensure that a competitive price is established and that the
public works contract is awarded to the lowest responsible bidder, the public
works director shall secure written or electronic proposals from the appropriate
contractors on the roster. Proposals may be invited from all contractors on the
roster. Alternatively, proposals may be invited from at least five contractors on
the roster who have indicated the capability of performing the kind of work
being contracted, in a manner that will equitably distribute opportunity among
the contractors; provided, that if the estimated cost of the work is from
$100,000 to $200,000 and proposals are invited from less than all of the
appropriate contractors on the small works roster, the public works director
shall notify the remaining appropriate contractors that proposals on the work are
being sought. The public works director, at the director's option, shall notify
the remaining appropriate contractors by:
1. Publishing notice in the official newspaper or a newspaper
of general circulation in the city;
2. Mailing notice to the remaining appropriate contractors;
or
3. Sending a notice to the remaining appropriate contractors
by facsimile or other electronic means.
For purposes of this subsection, "equitably distribute" shall mean
that the city shall not favor certain contractors on the small works roster over
other contractors on the small works roster who perform similar services.
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B. The invitation for proposals 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.
C. A contract awarded from the small works roster need not be
advertised.
D. The public works director shall award the contract to the lowest
responsible bidder.
E. Immediately after an award is made pursuant to the small works
roster procedure, the public works director shall record the bid proposals
obtained for the contract. The bid proposals shall be open to public inspection
and shall also be available to the public by telephone inquiry.
F. The public works director shall post a list of the contracts
awarded using the small works roster at least once a year. The list shall contain
the names of the contractors awarded the contracts, the amount of the contracts,
a brief description of the type of work performed under the contracts, and the
date the contracts were awarded. The list shall also state the location where the
bid proposals for the contracts are available for public inspection.
G. Nothing in this section shall be construed to permit the division of
a public works project into units of work or classes of work to avoid the
maximum dollar amount of a contract that may be awarded using the small
works roster process.
Section 13. Section 3.72.120 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.120 Public works-- Limited Public Works Projects Process.
A. In lieu of awarding contracts under BIMC 3.72.110, the public
works director may award a contract for a public works project estimated to cost
less than $35,000 pursuant to the limited public works process set forth in this
section. Public works projects awarded under this section are exempt from the
other requirements of the formal bidding and small works roster process set
forth in this chapter.
B. For any limited public works project, the public works director
shall solicit electronic or written quotations from a minimum of three
appropriate contractors from the small works roster.
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C. The public works director shall award the contract to the lowest
responsible bidder.
D. After an award is made, the quotations shall be open to public
inspection and available by electronic request.
E. The public works director shall attempt to distribute opportunities
for limited public works projects equitably among contractors willing to perform
in the geographic area of the work.
F. The public works director shall maintain a list of the contractors
contacted and the contracts awarded during the previous 24 months under the
limited public works project process, including the name of the contractor, the
contractor's registration number, the amount of the contract, a brief description
of the type of work performed, and the date the contract was awarded.
G. For limited public works projects, the public works director may
waive the payment and performance bond requirements of Chapter 39.08 RCW,
and the retainage requirements of Chapter 60.28 RCW; provided, however, that
such waiver shall not compromise or limit the city's right of recovery against
the contractor for any payments made by the city on the contractor's behalf.
H. Nothing in this section shall be construed to permit the division of
a public works project into units of work or classes of work to avoid the
maximum dollar amount of a contract that may be awarded using the limited
public works process.
Section 14. Section 3.72.130 of the Bainbridge Island Municipal Code is amended as
follows:
3.72.130 Waiver of bidding procedures in cases of emergency.
A. The bidding requirements of this chapter for public works
contracts shall not apply in cases of emergency. If an emergency exists, the
mayor shall declare that an emergency situation exists, recite the facts
constituting the emergency, waive competitive bidding requirements, and award
all necessary contracts on behalf of the city. If a contract is awarded without
competitive bidding due to an emergency, the mayor shall report to the city
council such emergency expenditures within seven days of the declaration of
emergency. The city council shall by resolution make and duly enter a written
finding of the existence of an emergency no later than fourteen days following
the award of the contract.
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B. For the purposes of this section, "emergency" means unforeseen
circumstances beyond the control of the city that either present a real and
immediate threat to the proper performance of essential functions or will likely
result in material loss or damage to property, bodily injury or loss of life if
immediate action is not taken.
Section 15. A new Section 3.72.140 is added to the Bainbridge Island Municipal
Code as follows:
3.72.140 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 engineering
services" shall mean professional services rendered by any persons, other than
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,
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current references, the f~'rn'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 fn'ms regarding anticipated concepts and the
relative utility of alternate methods of approach for furnishing the required
services.
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 prior to execution of the contract by the mayor.
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 16. 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 9th day of July, 2003.
APPROVED by the Mayor this 1 lth day of July, 2003.
Ordinance No. 2003-23, Procedures for PW or Improvement Contracts
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~)arlen~ Kord~no~wy, Mayor
ATTEST/AUTHENTICATE:
--'/c~/,~t-~.~,~i:'~t~ e~4c~ ~ ~1:
Susan P. Kaspei, City (~lerk'
APPROVED AS TO FORM:
Rod P. Kaseguma, City Attorney
Filed with the City Clerk: June 20, 2003
Passed by the City Council: July 9, 2003
Published: July 16, 2003
Effective Date: July 21, 2003
Ordinance Number 2003-23
H:\RANDY~Ord 2003-23 Purchasing-markupq)61203.DOC
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