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Home My WebLink AboutFS 2015-03-03 Item 2D - Ordinance - TMC Chapter 3.32 "Unbudgeted Equipment or Fixed Assets" UpdateCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance & Safety Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: February 25, 2015 SUBJECT: Remove Section 3.32.040 "Unbudgeted Equipment or Fixed Assets" from Tukwila Municipal Code and Repeal Ordinance Nos. 2245, 2010, and 1817 ISSUE Remove section 3.32.040 "Unbudgeted Equipment or Fixed Assets" from the Tukwila Municipal Code (TMC) and repeal Ordinance Nos. 2245, 2010, and 1817. BACKGROUND In November 1997, City Council adopted Ordinance No. 1817 establishing section Chapter 3.32 Budget Provisions, which included section 3.32.040 "Unbudgeted Equipment or Fixed Asset ". This section requires the approval of the Mayor and three affirmative votes of the respective Council Committee to approve the purchase of unbudgeted capital equipment or fixed asset item, including components or services of items related to capital equipment of fixed assets. Fixed asset items were defined as costing at least $1,000 and having a useful life of at least two years. Ordinance No. 2010, adopted in December 2002, changed the minimum limit for capital equipment from $1,000 to $5,000. Ordinance No. 2245 simply added section 3.32.050 "Emergency Procurement" to the chapter. DISCUSSION It is the City's responsibility to utilize taxpayers' dollars in the most effective and efficient way possible while adhering to applicable laws and regulations. In order to ensure that taxpayers' dollars are used appropriately, it is necessary for internal control processes and procedures to be in place and that they are followed. Section 3.32.030 "Bids" allows for the Mayor, when provided for in the budget, to call for bids on public works projects or procure goods or professional services when the project or procurement does not exceed $40,000. All purchases, whether budgeted or not, that are $40,000 or higher require Council approval. The control outlined in Section 3.32.030 "Bids" ensures that there is adequate oversight and control for all major purchases. Additionally, internal control over purchasing is also included in the City's Administrative Purchasing Policies. Section 3.32.040 "Unbudgeted Equipment or Fixed Asset Items" is specific to only one type of purchase and only when it is not included in the current adopted budget. With the exception of the lower dollar amount, Section 3.32.030 "Bids" covers unbudgeted equipment and fixed asset items. FIN INFORMATIONAL MEMO Page 2 Section 3.32.030 "Bids" provides appropriate control over large purchases; both budgeted and unbudgeted. Control over expenditures extends to capital assets purchases and are considered sufficient. Additionally, special treatment of capital asset purchases is not considered necessary or adds value to the internal control process over purchasing. Therefore, in an ongoing effort to streamline administrative policies, we are recommending that section 3.32.040 " Unbudgeted Equipment or Fixed Assets" be removed from the TMC. RECOMMENDATION Council is being asked to approve the Ordinance to repeal Ordinance Nos. 2245, 2010, and 1817. This item is scheduled for the March 9, 2015 Committee of the Whole, and March 16, 2015 Regular Council Meeting. ATTACHMENTS Ordinance to repeal Ordinance Nos. 2245, 2010, and 1817 Copy of Ordinance No. 2245 Copy of Ordinance No. 2010 Copy of Ordinance No. 1817 42 C: \Users\christy\AppData \Local \Microsoft \Windows \Temporary Intemet Files\Content.Outlook \H94XRZJM \Info Memo - TMC- Remove FA section.doa AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING REGULATIONS RELATING TO UNBUDGETED CAPITAL EQUIPMENT; REPEALING ORDINANCE NO. 2245, AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.32; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Tukwila Municipal Code Section 3.32.040 requires that any unbudgeted capital equipment or fixed asset item, including components and services of items, be approved by the Mayor and three affirmative votes of the respective Council committee assigned to the requesting City department; and WHEREAS, it is not a requirement of state law to outline approval requirements in the City's municipal code; and WHEREAS, the City of Tukwila believes it is more appropriate for policies relating to purchasing and approval for the purchase of unbudgeted capital equipment to be uncodified; and WHEREAS, controls over expenditures extend to capital asset purchases and are sufficient, and WHEREAS, special treatment of capital asset purchases is unnecessary and does not add any additional internal control value; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Chapter 3.32 Amended. Ordinance No. 2245, as codified at Tukwila Municipal Code Chapter 3.32, "Budget Provisions," is hereby amended to read as follows: W: Word Processing \Ordinances \Unbudgeted capital equipment 2 -6 -15 VC:bjs Page 1 of 3 43 3.32.010 Transfers Pursuant to RCW 35A.33.120, transfers within a department or division of the separate funds of the ann, ial biennial 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 biennial 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 — Procurement — Contracts When provided for in the anal - biennial budget, the Mayor is authorized to call for bids on public works projects or to procure goods or professional services when the project- 4)f-procurement, or service, including change orders or amendments, does not exceed $40,000 per calendar year. 3. 32.040 I (nbudgeted Equipment or Fixed Asset items. --- of items, shall be approved by the MayeF and thFee affirmative votes of the "Foxed asset" items are defiRed as GG6tiRg at least $5,000 and haviRg a useful life of at least two yeaFs. 3.32.0540 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(3). 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 No. 2245, as codified at Tukwila Municipal Code Chapter 3.32, "Budget Provisions," is hereby repealed. Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 4. 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. W: Word Processing \Ordinances \Unbudgeted capital equipment 2 -6 -15 vc:bjs Page 2 of 3 .. Section 5. 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 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 day of 12015. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Unbudgeted capital equipment 2 -6 -15 Vc:bjs Page 3 of 3 45 m 2 c� 1908 City of Tukwila Washington Ordinance No. ,-), �t � r� 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 $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 07114/2009 Page 1 of 2 47 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(3). 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 TUfWILA, WASHINGTON, at a Regular Meeting thereof this ;:�O T)4 day of J ti -2009. ATTEST /A 11A) Christy O'Flaherty, CMC, City C e-rk APPROVED AS M BY: Of ' o the City At me WAWord Processing \Ordinances \Budget Provisions Title 3.32.doc SKksn 07/142009 EN J Ji aggerton, or Filed with the City Clerk: _9 - 16 C� Passed by the City Council: Published: Effective Date: 9 ,V- C Ordinance Number.: ) q --,5 Page 2 of 2 JF�J'IA' �Yq k :' Repealed by 2245 ° Z J i ycP''•. i 2 yA, ............. .' 1908 Ci ty of Tukwila Washington Ordinance No. o D /0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 1817, AS CODIFIED AT TUKWILA MUNICIPAL CODE 3.46, TO INCREASE THE FIXED ASSET MINIMUM TO $5,000; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council desires to implement the new accounting reporting requirements; and WHEREAS, the City Council desires to assist in achieving this goal and wishes to increase the minimum limit for capital equipment from $1,000 to $5,000; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance No. 1817, as codified at Tukwila Municipal Code Chapter 3.46.040, is hereby amended to read as follows: 3.46.040 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. Section 2. 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 3. 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 (5) days after passage and publication as provided by law. PASSED BY THE CITY COUPIC,IOF THE OF WASHINGTON, at a Regular Meeting thereof this /t/D day of &I wd� " 2002. Steven M. Mullet, Mayor ATTEST/AUTHENTICATED: Jpe E. Cantu, CMC, City Clerk FILED WITH THE CITY CLERK: A;? - -F- APPROVED AS TO FORM: PASSED BY THE CITY COUNCIL. -,/ /6 -Q PUBLISHED: d By EFFECTIVE DATE: --ZS- O Offi e of the ' y Attorney ORDINANCE NO.: 0?0 /6 Fixed Asset Minimum.doc 11126102 1 49 50 i � Jiffy / rte._ • � City of Tukwila Washington Ordinance No. I g / 7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, PROVIDING FOR TRANSFERS, SALARY INCREASES, BIDS, AND UNBUDGETED EQUIPMENT OR FIXED ASSET ITEMS AT CHAPTER 3.46 OF THE TUKWILA MUNICIPAL CODE; REPEALING ORDINANCES 1319 AND 1554; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council desires to consolidate within one ordinance authority regarding transfers, salary increases, bids, and unbudgeted equipment or fixed asset items; and WHEREAS, the City Council desires to increase the minimum limit for capital equipment from $500 to $1,000; and WHEREAS, the City Council desires to clarify unbudgeted capital purchasing authority; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Tukwila Municipal Code Chapter 3.46, Budget Provisions, is hereby amended to read as follows: 3.46.010 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. 3.46.020 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. 3.46.030 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 does not exceed $25,000. 3.46.040 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 $1,000 and having a useful life of at least two years. Section 2. Repealer. Ordinance Nos. 1319 and 1554 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. TRSFRETC.DOC 10130197 1 51 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 (5) days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF ICITY OF TUKWILA,1 WASHINGTON, at a Regular Meeting thereof this _-g 1--lAt day of 1997. Jo .Rants, Mayor ATTEST /AUTHENTICATED: s e E. Cantu, City Clerk APPROVE12AS-T-9�FORM: FILED WITH THI�OTY CLERK: /0/30/9 % PASSED BY THE CITY COUNCIL: PUBLISHED: /1/7 % 7 EFFECTIVE DA4E `< <;Z /c/ 7 ORDINANCE NO.: / / 7 l TRSFRETC.DOC 10130197 2 52