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HomeMy WebLinkAboutCOW 2009-07-13 Item 5G - Ordinance - Bid Procedures and Add Emergency Procurement ProceduresC \"I'NGORV' Discussion Motion lltg Date 07/13/09 i\ltg Date REVIEWED BY Fund Source: Comments': ExPI'N1)ITURI RI?()UIR111) MTG. DATE 7/13/09 MTG. DATE 7/13/09 COUNCIL AGENDA SYNOPSIS Initials tVleetinu Date Prepared by 1 Mayor's review Council review 07/13/09 SH 1 A' 07/20/09 SH ITEM INFORMATION n COW Mtg. Utilities Cmte n Resolution Altg Date CA &P Cmte Arts Comm. ORIGIN.U. AGENDA DATE: JULY 13, 2009 CAS NUmber 09-100 \(;I.1N1).\ ITEM TITEI1 An ordinance amending regulations regarding bid procedures to increase the authorized expenditure amount and adding emergency procurement procedures. Ordinance 1 1 Bicl Award 1 1 Public Hearing 1 Other Mtg Date 07/20/09 Mtg Date SP( )NS( )R ā¯‘Counci !Mayor Adm SV6s DCD Finance Fire Legal PeR Police 1 PlV SPONSOR'S SU'IML \Rl" The ordinance would increase the authorized expenditure amount for items that must come to Council for approval from $25,000 to $40,000. The ordinance would also add a provision to the TMC allowing for the declaration of an emergency and waiver of competitive bidding requirements for qualifying events, as defined in RCW 39.04.280(3). The Council is being asked to approve the ordinance amending and adding to the TMC. F &S Cmte Parks Comm. DATE: 7/7/09 RECOMMENDATIONS: SP()NS()R /ADMIN. Finance Department CONIMITM1 No consensus on dollar amount; Forward to C.O.W. COST IMPACT FUND SOURCE AMOUNT BUDGETED RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 6/29/09 Ordinance in Draft Form RCW 39.04.280 Minutes from Finance and Safety Committee meeting of 7/7/09 ITEM No. 5 CD Alts Date Mtg Date Transportation Cmte Planning Comm. APPROPRIATION REQUIRED TO: FROM: DATE: SUBJECT: ISSUE BACKGROUND DISCUSSION City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee Shawn Hunstock, Finance Director June 29, 2009 Change to Authorized Purchase Amount Jim Haggerton, Mayor The dollar amount above which items must go to City Council for approval has not changed for decades. The Finance and Safety Committee members requested at the last meeting that Administration review that dollar amount and propose a change, if needed. Also, the City does not currently have a mechanism in TMC that allows for emergency purchases. The attached Code changes address both issues. In accordance with Tukwila Municipal Code Chapter 3.32.030, the Mayor is authorized to call for bids or procure goods and services so long as the amount does not exceed $25,000. Currently any purchase of $25,000 or more must go to City Council for approval. The dollar amount referenced in TMC 3.32.030 has remained unchanged for many years. The attached TMC changes provide for an increase in the dollar amount above which items must come to City Council for approval. The Legislature recently enacted ESHB 1847, which changes the bid limit amount to $40,000 for single craft public works contracts ($65,000 for multiple crafts). The new law takes effect July 26, 2009. While the law only addresses public works contracts, the $40,000 amount is recommended for all purchases for consistency and to prevent confusion in the purchasing process. The Tukwila Municipal Code does not provide a mechanism for the declaration of an emergency and waiver of competitive bid requirements when an event occurs that meets the definition of an emergency. Should a natural disaster or similar event occur, it would be necessary to solicit bids from multiple vendors, and it may also be necessary to call a special meeting of the City Council to approve the purchase. Adding a new section to the TMC will allow for the declaration of an emergency if an event occurs that meets the definition of an emergency contained in RCW 39.04.280(3). The Council would then need to meet within fourteen days of the declaration to certify that the emergency situation existed and approve the purchase. This would enable departments INFORMATIONAL MEMO Page 2 to respond to natural disasters and other events in a timely and efficient manner, particularly at a time when it might be difficult to assemble Council members to act on a purchase request in the case of a widespread event. RECOMMENDATION The Council is being asked to approve the attached changes to Tukwila Municipal Code Chapter 3.32. The changes would provide for the following: Increase the dollar amount, above which purchases must go to City Council for approval, to $40,000 for all types of purchases (public works projects and purchased good and services). Add Chapter 3.32.050 to allow for the declaration of an emergency by the Mayor, or City Administrator, if the requirements of RCW 39.04.280(3) are met. This item is scheduled to be discussed at the July 7, 2009 Finance and Safety Committee meeting, the July 13, 2009 Committee of the Whole meeting and subsequent July 20, 2009 Regular Meeting. ATTACHMENTS Draft Ordinace RCW 39.04.280 C:ltemp\XPg rpwise\I n foMe moPurchaseAmou nt.doc DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING REGULATIONS REGARDING BID PROCEDURES AND ADDING EMERGENCY PROCUREMENT PROVISIONS; REPEALING ORDINANCE NOS. 2010 AND 1817, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.32; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila seeks to establish an authorized level of procurement which allows for effective and efficient operation of the City's business by the Mayor and department directors; and WHEREAS, the authorized level of purchasing by the Mayor has remained at the same amount since 1997; and WHEREAS, the City of Tukwila seeks to establish an emergency purchasing policy consistent with State law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regulations Amended. Tukwila Municipal Code Chapter 3.32, "Budget Provisions," is hereby amended to read as follows: 3.32.010 Transfers. Pursuant to RCW 35A.33.120, transfers within a department or division of the separate funds of the annual budget shall be by formal motion of the City Council. 3.32.020 Salary Increase. No salary shall be increased above the amount provided therefor in the annual budget and specified in the adopted salary plan of the City. Salaries may be increased subsequent to salary plan changes formally approved by the City Council. 3.32.030 Bids. When provided for in the annual budget, the Mayor is authorized to call for bids on public works projects or procure goods or professional services when the project or procurement, including change orders or amendments does not exceed $25,000 $40,000. 3.32.040 Unbudgeted Equipment or Fixed Asset Items. Any unbudgeted capital equipment or fixed asset item, including components or services of items, shall be approved by the Mayor and three affirmative votes of the respective Council committee assigned to the requesting department. "Fixed asset" items are defined as costing at least $5,000 and having a useful life of at least two years. W \Word Processing \Ordinances \Budget Provisions Title 3.32.doc SH:ksn 07/02/2009 Page 1 of 2 3.32.050 Emergency Procurement. The Mayor or City Administrator is hereby authorized to waive competitive bidding requirements in the event of an emergency, as defined by RCW 39.04.280(31. Such an emergency will be declared in writing by the Mayor or City Administrator. The City Council will meet within two weeks following the award of the contract to consider adoption of a resolution certifying that the emergency situation existed and for approval of the procurement. Section 2. Repealer. Ordinance Nos. 2010 and 1817, as codified at Tukwila Municipal Code Chapter 3.32, "Budget Provisions," are hereby repealed. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this clay of 2009. ATTEST/ AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney W: \Word Processing \Ordinances\Budget Provisions Title 3.32.doc SH ksn 07/02/2009 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 2 of 2 RCW 39.04.280: Competitive bidding requirements Exemptions. Page 1 of 1 RCW 39.04.280 Competitive bidding requirements Exemptions. This section provides uniform exemptions to competitive bidding requirements utilized by municipalities when awarding contracts for public works and contracts for purchases. The statutes governing a specific type of municipality may also include other exemptions from competitive bidding requirements. The purpose of this section is to supplement and not to limit the current powers of any municipality to provide exemptions from competitive bidding requirements. (1) Competitive bidding requirements may be waived by the governing body of the municipality for: (a) Purchases that are clearly and legitimately limited to a single source of supply; (b) Purchases involving special facilities or market conditions; (c) Purchases in the event of an emergency; (d) Purchases of insurance or bonds; and (e) Public works in the event of an emergency. (2)(a) The waiver of competitive bidding requirements under subsection (1) of this section may be by resolution or by the terms of written policies adopted by the municipality, at the option of the governing body of the municipality. If the governing body elects to waive competitive bidding requirements by the terms of written policies adopted by the municipality, immediately after the award of any contract, the contract and the factual basis for the exception must be recorded and open to public inspection. If a resolution is adopted by a governing body to waive competitive bidding requirements under (b) of this subsection, the resolution must recite the factual basis for the exception. This subsection (2)(a) does not apply in the event of an emergency. (b) If an emergency exists, the person or persons designated by the governing body of the municipality to act in the event of an emergency may declare an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts on behalf of the municipality to address the emergency situation. If a contract is awarded without competitive bidding due to an emergency, a written finding of the existence of an emergency must be made by the governing body or its designee and duly entered of record no later than two weeks following the award of the contract. (3) For purposes of this section "emergency" means unforeseen circumstances beyond the control of the municipality that either: (a) Present a real, immediate threat to the proper performance of essential functions; or (b) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken. [1998 c 278 11 http: /apps.leg.wa.gov /RCW /default.aspx ?cite= 39.04.280 06/27/2009 FINANCE AND SAFETY COMMITTEE Meeting Minutes July 7, 2009, 5:00 p.m.; Conference Room #3 CALL TO ORDER: Chair Linder called the meeting to order at 4:59 p.m. I. PRESENTATIONS No presentations. City of Tukwila Finance and Safety Committee PRESENT Councilmembers: Pam Linder, Chair; Joan Hernandez (sitting in for Joe Duffle) and De' Sean Quinn Staff: Shawn Hunstock, Nick Olivas, Don Tomaso, Mary Miotke, Don Lincoln, Rhonda Berry and Kimberly Matej Guests: Chuck Parrish and Jeremy Eide II. BUSINESS AGENDA A. Ordinance Amending TMC Section 3.32 Increase in Purchasing Limits and Allow for Declarations of Emeraencv Based on a request made by the Finance Safety Committee (see minutes dated June 2, 2009), staff is returning to Committee seeking full Council approval of an ordinance amending and adding to the Tukwila Municipal Code (TMC) in the following two areas: 1) Amend TMC 3.32.030 increasing the City purchasing limit, any amount above which, will require Council approval; 2) Add TMC 3.32.050 allowing for declaration of an emergency per the requirements of the Revised Code of Washington (RCW) 39.04.280(3). In regards to the amendment (number 1 above), the TMC currently requires that any City expenditure over $25,000 be approved by the City Council. This amount has remained unchanged since 1978. Staff is recommending that this amount be increased to $40,000 in order to streamline City financial processes. Shawn Hunstock reviewed additional checks and balances, limits and audit guidelines that will continue to ensure City financial processes are secure and transparent (i.e.: Mayoral approval of all purchases over up to $25,000, or $40,000, if changed; and continued voucher review by Councilmembers). Additionally, as of July 26, 2009, certain public works bid laws will take effect, increasing bid limits to $40,000. Increasing the City limit for all purchases to $40,000 from the current $25,000 will assist in encouraging consistency and preventing confusion in the purchasing process. The second item above, is an addition to the TMC, which will allow for appropriate purchases over the TMC required amount for Council approval when an emergency situation occurs as defined by RCW 39.04.280(3). Specifically, this will allow City departments to respond to natural disasters and other such emergencies efficiently without the requiring prior Council approval to make respective purchases, etc. Committee members were supportive of the addition to the TMC regarding emergency declarations (item number 2). However, they felt additional full Council discussion was needed for increasing the limit of purchases requiring Council approval. Therefore, this item will move forward to Council without a Committee recommendation. UNANIMOUS APPROVAL. FORWARD TO JULY 13 COW FOR DISCUSSION. B. Cascade Water Alliance Bond Sale Resolution and Continuing Disclosure Agreement Staff is seeking full Council approval of a resolution authorizing the Mayor to sign two certificates relating to the 2009 Cascade Water Alliance (CWA) bond.