HomeMy WebLinkAboutReg 2020-12-07 Item 5G - Resolutions / Ordinance - Financial Policies / Purchasing Policy / Repeal Ord 2245 Section Related to Bids and Unbudgeted Equipment or Fixed Asset ItemsITEM INFORMATION
STAFF SPONSOR: LAUREL HUMPHREY ORIGINAL AGENDA DATE: 11/23/20
AGENDA ITEM TITLE Financial Policy Updates: Resolution adoping Financial Policies, Resolution adopting
Purchasing Policy, Ordinance repealing TMC 3.32.030 and 3.32.040.
CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date 11/23/20 Mtg Date Mtg Date 12/7/20 Mtg Date 12/7/20 Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor HR DCD Finance Fire TS P&R Police PW
SPONSOR’S
SUMMARY Staff is seeking Council approval of a resolution adopting financial policies, a resolution
adopting a purchasing policy, and an ordinance to remove 3.32.030 and 3.32.040 from the
Municipal Code.
REVIEWED BY Trans&Infrastructure CommunitySvs/Safety Finance Com Planning/Economic Dev.
LTAC Arts Comm. Parks Comm. Planning Comm.
DATE: 11/9/20 COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN.
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
11/23/20
12/7/20
MTG. DATE ATTACHMENTS
11/23/20 Info memo dated 11/3/20
Table of proposed Financial Policies
Proposed resolution adopting Financial Policies
Proposed resolution adopting Purchasing Policy
Proposed ordinance repealing 3.32.030 and 3.32.040
Proposed repeals: Resolution 1919, Resolution 1950, TMC 3.32.030 and 3.32.040
Minutes from the 11/9/20 Finance Committee
12/7/20 Resolution adopting Financial Policies
Resolution adopting Purchasing Policy (in strike-thru underline per 11/23 C.O.W.)
Ordinance repealing 3.32.030 and 3.32.040
COUNCIL AGENDA SYNOPSIS
----------------------------------Initials --------------------------------- ITEM NO.
Meeting Date Prepared by Mayor’s review Council review
11/23/20 LH
12/7/20 LH 5.G.
105
106
City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING FINANCIAL POLICIES,
AND REPEALING RESOLUTION NOS. 1919 AND 1950.
WHEREAS, the City Council is committed to the highest standard of financial
management; and
WHEREAS, financial policies adopted by the legislative body are a best practice to
provide written guidance for how local government officials and staff should approach
fiscal issues and core financial areas; and
WHEREAS, financial polices outline a clear vision of how the City of Tukwila will
manage its financial resources to provide the best value to the community; and
WHEREAS, periodically updating and revising financial policies are important steps
toward ensuring consistent and rational financial management; and
WHEREAS, financial policies have traditionally existed in many different documents
and the City Council desires to minimize confusion and eliminate redundancies or
conflicts by consolidating financial policy direction to the extent feasible;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Financial Policies attached hereto as Exhibit A are adopted.
Section 2. The Financial Policies shall be reviewed on at least a biennial basis and
updated as necessary.
Section 3. Repealer. Resolution Nos. 1919 and 1950 are hereby repealed.
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
day of ,2020.a Regular Meeting thereof this
ATTEST/AUTHENTICATED:
De’Sean Quinn, Council PresidentChristy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Filed with the City Clerk:__
Passed by the City Council:
Resolution Number:______
Office of the City Attorney
Attachment: Exhibit A - Financial Policies
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Financial Policies 11-30-20 Page 1 of 5
Financial Policies
Section 1. Purpose
a. The City of Tukwila is accountable to the public and shall maintain the fiscal
integrity of its operating, debt service, and capital budgets while providing an
appropriate level of public services within the City’s fiscal responsibility.
b. The City’s Financial Policies are intended to provide guidelines for the financial
planning and internal financial management of the City.
Section 2. Budgeting
Cross references: TMC Chapter 3.30
a. The City of Tukwila shall prepare and adopt a biennial budget in accordance with
RCW Chapter 35A.34, and Tukwila Municipal Code (TMC) Chapter 3.30. Fiscal
years begin January 1 and end December 31.
b. The budget shall be prepared with a priority-based approach that enables
resources to be allocated to the programs and services that provide the greatest
value to the community.
c. The budget must be developed in accordance with the policies and priorities set
forth in long-term policy documents including the Equity Policy, Strategic Plan,
Comprehensive Plan, City Council and community priorities, and federal and state
laws.
d. Within each budget cycle, the budget should be structurally balanced, which
means that ongoing expenditures shall be provided for by anticipated ongoing
revenue and one-time revenue should only be used for one-time expenditures
unless explicitly authorized by the City Council.
e. The City shall maintain a six-year Capital Improvement Program and update it
with each budget cycle to ensure that all costs are addressed.
f. As part of each biennial budget process, the City shall prepare six-year
expenditure and revenue forecasts for the principal operating and capital funds.
Revenues will be estimated on a conservative basis.
g. The City Council may informally approve mid-year budget amendments by motion
prior to the submission of a comprehensive formal budget amendment at the end
of the fiscal year.
Section 3. Revenues
Cross references: TMC Title 3
a. The City will maintain a diversified and stable revenue system to shelter it from
short-term fluctuations.
b. The City shall develop and maintain a comprehensive schedule of fees and
charges, which should be reviewed biennially.
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Financial Policies 11-30-20 Page 2 of 5
Section 3. Revenues (continued)
c. The City shall develop and maintain a Revenue Guide that describes major
revenue sources available to the City of Tukwila.
d. Revenue sources should be reviewed in off-budget years to account for inflation,
to stay in line with market, or to ensure cost recovery at a prescribed level
depending on the revenue source.
Section 4. Expenditures
Cross references:
- Purchasing Policy (Resolution TBD)
- Procurement Card Policy (Resolution No. 1750)
- Expense Reimbursement Policy (Resolution No. 1874)
a. The City shall maintain expenditure categories according to state statute and
administrative regulation known as the State Auditor’s Budgeting, Accounting,
and Reporting System (BARS).
b. Operating expenditures within funds must be supported by the operating
revenues generated by that fund.
c. Purchasing will be conducted with appropriate internal controls, observe fair and
ethical business practices, and use wise and prudent judgement in the
expenditure of public funds.
Section 5. Grants
Cross references: Grant Policy/Procedure in progress
a. The City shall, whenever practical and advantageous, pursue grant funding. All
potential grants shall be examined carefully for matching requirements, and to
determine whether programs must be continued with local resources after grant
funds are exhausted.
b. Staff shall obtain approval from the appropriate City Council Committee before
applying for grants requiring a local match, and staff shall obtain City Council
approval prior to accepting grant agreements in amounts above the Mayor’s
signing authority.
Section 6. Capital Improvement Program (CIP)
a. Transportation improvements will be coordinated with related improvements such
as utility, landscaping, sidewalks, etc.
b. Whenever feasible, capital improvements shall be coordinated with related
improvements of adjacent jurisdictions.
c. Capital Improvement Program projects shall, whenever possible, take advantage
of grants, loans or other financing external to the City. If the proposed grants or
mitigation are either not funded or are reduced, the City Council will reevaluate
the respective project on the basis of its value and priority level placement in the
Capital Improvement Program.
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Financial Policies 11-30-20 Page 3 of 5
Section 6. Capital Improvement Program (CIP) (continued)
d. Residential streets with safety issues, high traffic volumes, high pedestrian activity
and poor roadway conditions will be considered the highest priority projects.
e. Residential street designs will follow basic designs for arterials, collectors, and
local access streets. Designs to accommodate individual properties shall be
avoided.
f. Design of connecting streets is strongly encouraged.
g. For City-scheduled projects located on residential streets, the City will require the
undergrounding of new electrical and communication facilities pursuant to TMC
Chapter 11.28.
h. Street and road improvement projects on slopes will include roadside plantings
wherever feasible to help mitigate the land used for roadway and sidewalk
improvements.
i. Donation of the property needed for rights-of-way and easements shall be
pursued.
j. Latecomer agreements, where appropriate, shall be considered an acceptable
means of funding capital projects, improvements and replacements, in whole or
in part.
k. Right-of-way agreements for cable and electrical services should be utilized to
discourage excessive wiring throughout the City.
l. Current arterial street improvements determined in the six-year CIP may be
funded through a Local Improvement District (LID) or financing external to the
City. The City may participate using operating revenues, grants or bonds based
on health and safety needs or public benefit. The City may participate in the
funding by financing the preliminary engineering design and professional service
costs associated with planning and creating the LID.
m. A majority of property owners on a street may petition the City to set up an LID to
pay for residential street improvement projects, sidewalks and undergrounding of
utilities. The City will evaluate the possibility of paying for the design, preliminary
engineering, construction engineering, and LID formulation. The residents will
pay for undergrounding utilities in the street, undergrounding from the street to
their residence, the actual construction costs, and any improvements on private
property such as rockeries, paved driveways, or roadside plantings.
n. Non-transportation capital projects and improvements should be funded by
operating revenues, grants or bonds as determined in the six-year Financial
Planning Model.
o. Pursuant to TMC Chapters 3.56 and 3.60, the first 1/4 cent Real Estate Transfer
Tax (REET) shall be dedicated to park and open space land acquisition, and the
second 1/4 cent shall be used for arterial streets, along with the parking tax,
unless the City Council enacts other priorities consistent with state law distribution
of REET funds.
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Financial Policies 11-30-20 Page 4 of 5
Section 6. Capital Improvement Program (CIP) (continued)
p. Street and road improvement projects shall be evaluated for the inclusion of
features that support the City’s “Walk and Roll Plan” in order to encourage
walking, bicycling, and use of public transit.
q. Policies will be reviewed annually and in concert with the adoption of growth
management policies to ensure continuity.
r. Transportation impact fees shall be collected so that “growth may pay for growth”
and growth-caused improvements may be constructed.
Section 7. Enterprise Funds
a. Utility fund expenditures shall be fully supported by their own rates, fees, and
charges and not subsidized by the General Fund.
b. Utility rates should be structured to ensure adequate infrastructure development
and replacement.
c. Each Enterprise Fund shall be reviewed bi-annually to ensure a rate structure
adequate to meet its operations, maintenance, and long-term capital
requirements.
d. Enterprise Fund rate increases shall be small, applied frequently, and staggered
to avoid an overly burdensome increase and undue impact in any given year.
e. Enterprise Fund rate increases of external agencies will be passed through to the
customer.
f. Infrastructure improvements such as water reuse should consider conservation of
resources such as water and electricity.
Section 8. Debt
Cross references: Debt Policy (Resolution No. 1840)
a. Appropriate management of debt is an important factor in measuring the City’s
financial performance and condition.
Section 9. Reserves
a. Prudent financial management dictates that some portion of funds available to the
City be reserved for future use.
b. At the close of each fiscal year, the General Fund unassigned balance shall equal
or exceed 18% and the Contingency Fund reserve balance shall equal or exceed
10% of the previous year General Fund revenue, exclusive of significant non-
operating, non-recurring revenues such as real estate sales or transfers in from
other funds.
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Financial Policies 11-30-20 Page 5 of 5
Section 9. Reserves (continued)
c. At the close of each fiscal year, the unrestricted balances of the Enterprise Funds
shall equal or exceed 20% of the previous year revenue, exclusive of the effects
of GASB Statement 68, as well as significant non-operating, non-recurring
revenues such as real estate sales, transfers in from other funds or debt proceeds.
d. Use or draw down of minimum balances shall occur only upon recommendation
of City Administration and approval by City Council through a resolution. Should
use or draw down occur, the City Administration shall establish a plan, no later
than the end of the fiscal year following the year of decline, to restore the fund
balance to the prescribed minimum level. The plan shall be presented to and
approved by the City Council.
e. A One-time Revenue Reserve shall be established and maintained in the
Contingency Fund. The One-time Revenue Reserve shall be credited annually
with 10% of the prior year one-time revenues to the extent General Fund surplus
for the year is sufficient to cover the reserve funding. Use of the reserve shall
occur only upon recommendation by City Administration and approval by City
Council resolution.
f. The City shall maintain a reserve in each of its self-insured health care funds in
an amount equal to 1.5 times, or 150%, of the actuarially determined IBNR
(incurred but not reported) balance. Use of the reserve shall occur only upon
recommendation by City Administration and approval by City Council resolution.
Section 10. Investments
(Cross references: TMC 3.28, Resolution 1828,
a. The City will strive to maximize the return on its investments with the primary
objective of preserving capital in accordance with city policy and prudent
investment practices.
Section 11. Minimum Reporting Requirements
a. The Finance Director shall provide a financial status update at least quarterly.
b. City Administration shall provide the City Council with financial reports that reflect
actual performance in various expenditures and revenues.
c. City Administration shall provide the City Council with a quarterly report of all
newly-executed contracts, including the amount, responsible department, scope
of work, and expiration date.
d. Once the annual audit is complete, City Administration shall provide a report to
the City Council showing compliance with the Financial Reserve Policy.
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City of Tukwila
Washington
Resolution No.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITYOF TUKWILA, WASHINGTON, ADOPTING A
PURCHASING POLICY.
WHEREAS, the City Council is committed to the highest standard of financial
management; and
WHEREAS, the expenditures of publicfundsfor the purchase of and contracting for
goods, services, supplies, and materials must comply with all applicable state and local
requirements; and
WHEREAS, a comprehensive purchasing policy helps ensure that publicfunds are
spent in the most economical and transparent way possible; and
WHEREAS, the City Council desires to minimize confusion and eliminate
redundancies or conflicts by consolidating and updating the City’s procurement policies;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. The Purchasing Policy attached hereto as Exhibit A is adopted.
Section 2. City of Tukwila Administrative Policies 100-09, 300-002, 300-03, 300-07,
300-11, 900-03, are superceded.
Section 3. The Purchasing Policy shall be reviewed on at least a biennial basis and
updated as necessary.
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
day of , 2020.a Regular Meeting thereof this
ATTEST/AUTHENTICATED:
De’Sean Quinn Council PresidentChristy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Filed with the City Clerk:__
Passed by the City Council:
Resolution Number:______
Office of the City Attorney
Attachment: Exhibit A - Purchasing Policy
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i
CITY OF TUKWILA
PURCHASING POLICY
TABLE OF CONTENTS
1. Procurement Policy Table ................................................................................................1
2. Administration .................................................................................................................2
A. Purpose
B. Controlling Laws
C. Compliance with Policy
D. Signing Authority and Approval
3. Determining Total Cost ....................................................................................................2
A. Anticipated Cost
B. Prohibition on “Bid Splitting”
C. Total Costs to Include
4. Vendor Relations ..............................................................................................................3
A. Ethics of Procurement
B. Buy Local
C. Environmental Sustainability
D. Social Equity
5. Grants and Federal Funding.............................................................................................4
A. General Rule
B. Purchases of Goods or Service Reimbursable from a Federal Grant
6. Controlled Commodities ..................................................................................................6
7. Types of Projects and Contract Approval Levels .............................................................6
A. Public Works
B. All Other Types of Purchases
8. Threshold Cost Negotiation Requirements .....................................................................6
A. $10,000 or Less: Direct negotiation
B. $10,000-$50,000: 3 quotes needed
C. $50,000 or More: Competitive bids
Text in track changes (Pgs. ii, 6, 9 and 13) show revisions made after the 11/23/20 C.O.W. meeting.
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ii
9. Public Works Projects ......................................................................................................7
A. Defining Project Costs
B. City Labor
C. Bid Requirements
D. Small Works Roster
E. Limited Public Works Process
F. Prevailing Wages
G. Bid Deposit, Performance Bond, and Payment Bond
H. Retainage
I. Public Works over $1 Million
J. Alternative Public Works Contracting Procedures
10. Competitive Bidding Process ...........................................................................................9
A. Public Notice
B. Bid Specifications
C. Award
D. Cancellation
E. Bid Submittal
F. Bid Security
G. Non-Collusion Affidavit
11. Service Categories ............................................................................................................11
A. Professional Architectural and Engineering Services
B. Personal Services
C. Purchased Services
12. Materials, Supplies, Equipment (unrelated to Public Works, Services, A&E) ................13
13. Exceptions to the Competitive Process ...........................................................................13
14. Disposal of Surplus Property ...........................................................................................14
A. Policy Statement
B. Definitions
C. Procedures
15. Additional Considerations ...............................................................................................16
A. Certificates of Insurance
B. State Contractor’s License
C. City Business License
16. References ........................................................................................................................16
17. Glossary .........................................................................................................................17
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City of Tukwila Purchasing Policy 11-30-2020
1. PROCUREMENT POLICY TABLE
PROJECT TYPE CITY/TOWN COMPETITIVE BIDDING REQUIREMENTS
Public Works
Project
Same
Requirement
for ALL cities
If your project is: <$75,500 $75,500 -
$350,000 >$350,000
Type of Bidding
Required:
Minimal
Competition
Process
Small Works
Roster
Formal
Competitive
Bidding
Agencies may
seek quotes
directly from
individual
vendors. No
competitive
bidding required.
List of qualified
contractors who
can bid for an
eligible project
below $350,000.
(RCW 35.04.155).
Requires local
agencies to
award PW
contracts to
responsible
bidder with
lowest
responsive bid.
Purchase of goods,
equipment,
supplies, or
materials (not
connected with PW
project)
Cities under
20,000
population
If your purchase
is: <$7,500 $7,500-$15,000 >$15,000
Type of Bidding
Required:
Minimal
Competition
Process
Vendor List
Formal
Competitive
Bidding
Agencies may
seek quotes
directly from
individual
vendors. No
competitive
bidding required.
List of vendors
who are
interested in
selling
equipment,
materials and
supplies to the
city. (RCW
39.04.190)
Required to
advertise the
solicitation, but
there is no
required method
or timeframe.
Sealed bids and
public bid
opening
required.
Cities over
20,000
population
Type of Bidding
Required:
State law does not establish any specific bid limits or
competitive processes that first-class cities or code cities
over 20,000 must follow for purchases. You should
establish bid limits and competitive processes in policy.
Professional
Services
Same
Requirement
for ALL cities
Type of Bidding
Required:
All local governments must follow the same qualifications-
based selection (QBS) process outlined in RCW 39.80. You
must solicit competitive bids and evaluate them based on
qualifications, without regard to cost.
Personal Services
Same
Requirement
for ALL cities
Type of Bidding
Required:
State law does not require any thresholds or processes for
personal services contracting. If your project receives any
federal funding, must comply with federal competitive
requirements.
Purchased Services
Same
Requirement
for ALL cities
Type of Bidding
Required:
State law does not prescribe any thresholds or processes
for purchased services contracting. However, some
purchased services may require payment of prevailing
wages.
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2. ADMINISTRATION
A. Purpose
This policy is intended to direct the purchase of goods and services at a reasonable cost. An open, fair, and
competitive process is to be used whenever reasonable and possible. It is the City’s policy to follow state
requirements regarding the expenditure of public funds, to provide a fair forum for those interested in
bidding on public contracts and to help ensure that public contracts are performed satisfactorily and
efficiently at the least cost to the public while avoiding fraud and favoritism.
B. Controlling Laws
The expenditures of public funds for the purchase of and contracting for goods, services, supplies, and
materials shall comply with all applicable state law requirements as set forth in the Revised Code of
Washington (RCW) and the Washington Administrative Code (WAC), in addition to other applicable local
and federal laws and regulations. The City Attorney shall be consulted when questions regarding potential
conflicts arise.
C. Compliance with Policy
The City’s department heads shall implement, monitor, and enforce these policies. In the event of any
conflict in procurement requirements or questions about proper procedure or other requirements, the
matter shall be referred to the Finance Director. Willful or intentional violations of public procurement
requirements may result in personal penalties, financial liabilities, and/or discipline per RCW 39.30.020.
D. Signing Authority and Approval
1) Per RCW 35A.11.010, the City’s authority to contract, and be contracted with, is vested in the
City Council. City Council has delegated authority to the Mayor to execute contracts and
contract modifications that meet the criteria of this Policy.
2) Any City staff member purchasing goods on behalf of the City without proper authorization
may be personally liable to the vendor and the City, and subject to disciplinary action.
3) Electronic signatures of authorized City staff may be accepted pursuant to the City’s
Electronic Signature Policy.
4) All work or any purchase authorized with a particular vendor, consultant, or contractor that
cumulatively is expected on a particular project to exceed an annual amount of $20,000 must
be in writing, and approved according to the authority provided for within Section 7.
3. DETERMINING TOTAL COST
A. Anticipated Cost
The anticipated annual need for a good or service (when it can reasonably be projected) shall be used to
determine the cost of that good or service, and thus which contract approval level, cost threshold, and other
related purchasing requirements apply.
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City of Tukwila Purchasing Policy 11-30-2020
B. Prohibition on “Bid Splitting”
The breaking of any project into units, or accomplishing any project by phases, is prohibited if it is done for
the purposes of avoiding compliance with bidding statutes. RCW 35.23.352(1).
To avoid bid splitting:
1) Combine all phases of a public work project when estimating cost.
2) Combine the total of foreseen identical items purchased at the same time or within a
calendar year’s time, in which the cost exceeds competition limits (i.e. office supplies, laundry
services, janitorial paper products, etc.)
3) Items that are designed, or intended to be used together (i.e., water meters and covers), and
the cost exceeds competition limits, should be bid together.
C. Total Costs to Include
Include costs such as taxes, freight, and installation charges when determining which cost threshold applies. Do
not include the value of a trade-in. Trade-in value should be considered, however, to determine the lowest bid
when competitive bidding is used.
Further requirements for the total quantity of an item (when they can be reasonably projected) should be
considered when determining which cost threshold and related purchasing requirements apply.
Finally, if a project is to be completed in phases, the total accumulated cost for all phases should be considered
when determining which cost threshold applies.
4. VENDOR RELATIONS
A. Ethics of Procurement
The City is committed to providing a very fair, transparent and equitable process to our purchases. We ask all
staff participating in a solicitation and/or award process to be thoughtful of any perceived or actual conflicts of
interest. See Tukwila Municipal Code (TMC) Section 2.95.030 (“Code of Ethics for Employees and Appointed
Officials”) for more information.
The City seeks to avoid situations that involve conflicts of interests or the appearance of such conflicts based on
inappropriate opportunities to influence the solicitation and/or award process. The City uses the measures of
how a reasonable person would perceive the situation. A reasonable person standard might consider how the
situation would appear if covered by a news story or viewed from the perspective of a public interest group.
Common questions to ask are: Could you comfortably explain your actions? Would taxpayers believe you
were acting in their best interest?
City staff should refuse gifts, meals and invitations to events such as concerts or sporting events, that could be
reasonably perceived as: improperly influencing performance of your official duties; a reward for awarding a
contract; or offered or given to influence, find favor, or with a reasonable expectation of creating an obligation
to the giver. Vendors are prohibited from offering gifts during the solicitation and ensuing contract award
process. Contact the City Attorney for assistance if you encounter unusual situations.
Finally, contact the City Attorney before initiating a contract with a former City employee to determine if doing
so would create an actual conflict of interest or the appearance of a conflict of interest.
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City of Tukwila Purchasing Policy 11-30-2020
B. Buy Local
It is the City’s policy to take affirmative steps to encourage local businesses to apply to participate in the
procurement process. Further, to the extent legally possible, the City will consider the use of those local
businesses in order to support and enhance the local economy.
C. Environmental Sustainability
The City is committed to the protection of the environment and has taken steps towards becoming more
sustainable. Accordingly, departments are strongly encouraged to purchase recycled and other
environmentally preferable products whenever practicable and to encourage this of their contractors.
However, nothing in this policy shall be construed as requiring the purchase of products that do not perform
adequately or are not available at a reasonable price.
D. Social Equity
The City shall endeavor to contract with minority-owned businesses and contractors and materials suppliers
pursuant to the goals outlined in the City’s Equity Policy, which provides guidance to City elected officials, staff,
boards and commissions, partners, residents, businesses and guests on how to actively promote equitable
access to opportunities and services.
5. GRANTS AND FEDERAL FUNDING
A. General Rule
Not all grant funded projects are covered by this policy because many of the grants have their own
procurement requirements. Grant Managers are responsible for grant purchases, but shall consult with
Finance Director or designee prior to initiating any grant purchases. Grant managers are responsible for
ensuring all grant purchases comply with grant procurement requirements.
B. Purchases of Goods or Service Reimbursable from a Federal Grant
When spending federal funding, the City complies with the Uniform Administrative Requirement, Cost
Principals, and Audit Requirements for Federal Awards (Uniform Guidance) published in Title 2 of the Code of
Federal Regulations (2 CFR 200), specifically 2 CFR 200.318 through 200.326, which can be accessed HERE.
Please note that all grants are different, so one size does not fit all. Some grants simply require you to use your
own procurement rules, while others require you to insert their contracting clauses into your contract.
However, some general guidelines from the Uniform Standards are outlined below:
1) Section 200.62 of the Uniform Guidance requires and defines internal control over compliance
requirements for federal awards to mean a process implemented by the City designed to provide
reasonable assurance regarding the achievement of the following objectives for Federal awards:
a. Transactions are properly recorded and accounted for, in order to:
i. Permit the preparation of reliable financial statements and Federal reports;
ii. Maintain accountability over assets; and
iii. Demonstrate compliance with Federal statutes, regulations, and the terms and conditions
of the Federal award;
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City of Tukwila Purchasing Policy 11-30-2020
b. Transactions are executed in compliance with:
i. Federal statutes, regulations, and the terms and conditions of the Federal award that
could have a direct and material effect on a Federal program; and
ii. Any other Federal statutes and regulations that are identified in the Compliance
Supplement; and
iii. Funds, property, and other assets are safeguarded against loss from unauthorized use or
disposition.
2) Section 200.320 of the Uniform Guidance requires the City to ensure that purchases are procured in
accordance with the following guidelines:
a. Procurement of $3,000 and under: To the extent practicable, the City must distribute these
purchases equitably among qualified suppliers. Purchases may be awarded without soliciting
competitive quotations if the City considers the price to be reasonable.
b. Procurement between $3,000 and $150,000: Price or rate quotations must be obtained from an
adequate number of qualified sources.
c. Procurement above $150,000: Sealed Bids or Competitive Proposals or Sole Source:
i. Sealed Bids – Bids are publicly solicited and a fixed price contract (lump sum or unit price)
is awarded to the responsible bidder whose bid, conforming with all the material terms
and conditions of the invitation for bids, is the lowest in price.
ii. Competitive Proposals – Used when more than one source has submitted an offer, and
either a fixed price or cost-reimbursement type contract is awarded. It is generally used
when conditions are not appropriate for the use of sealed bids.
3) Appendix II to Part 200 – Contract provisions for city contract under federal awards requires the City
to verify that all contractors are not suspended or debarred from Federal funding. Prior to executing
a federal-aid agreement, the City must verify status with the System for Award Management (SAM)
at https://www.sam.gov/SAM/pages/public/searchRecords/search.jsf to determine if the
contractor/consultant has been excluded from bidding on a federal aid contract. SAM is the
electronic version of the Lists of Parties Excluded from Federal Procurement and Non-Procurement
Programs (Lists), which identifies those parties that have been suspended, debarred, otherwise
excluded from bidding on federal contracts or consultants that will not be eligible for federal aid
reimbursement.
4) Pursuant to the Washington Secretary of State Local Government Records Retention Schedule,
financial records pertaining to the purchase must be retained in accordance with the applicable
Washington State Records Retention schedule. Further, each City Department awarded grant
services shall maintain records of all purchases and be responsible for following grant requirements.
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6. CONTROLLED COMMODITIES
If the cost of the following item(s) is over $75.00, purchase of the item requires approval from the Tukwila
Technology and Innovation Services Department Director or designee:
A. Computers and related equipment, fax machines, printers, scanners and copiers, cell phones,
telephone equipment, pagers, software or systems.
B. Anything the Tukwila Technology and Innovation Services Department is requested or required to
install, connect, and/or service.
7. TYPES OF PROJECTS AND CONTRACT APPROVAL LEVELS
The following types of projects and contract approval levels are intended to be for projects with previously
allocated funds approved by City Council.
A. Public Works:
1) $20,000 or less ........... Approved by Public Works Department Director
2) $20,001 to $39,999 .... Approved by Mayor, provided the project is in the Capital Improvement
Program (CIP).
3) $40,000 or more ......... Approved by City Council
All public works projects must be within the CIP budget. If additional funds are required, the
request must be approved by City Council.
B. All other types of purchases (professional services, personal services, purchased services,
materials/supplies/equipment):
Professional services provided by a consultant that fall under architecture, engineering, land
surveying, or landscape architecture. Contract approval levels:
1) $20,000 or less ............ Approved by Department Director
2) $20,001 to $39,999 .... Approved by Mayor
3) $40,000 or more ......... Approved by City Council
Cost modifications that, either singly or combined with all previous modifications, increase the
total contract amount from under to over the $40,000 signature threshold shall be approved by
City Council.
8. THRESHOLD COST NEGOTIATION REQUIREMENTS
The following cost thresholds apply for purchases of supplies, equipment, and non-professional services.
Non-professional services include routine and continuing functions predominately related to physical
activities.
The cost thresholds below do not apply to purchase constituting public works or professional services
(including architectural or engineering services). Refer to Section 1213 for situations involving sole source
or emergency purchases.
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A. $10,000 or Less: Direct negotiation
Purchases in this price range may be entered into through direct negotiation. Competition is not required,
though departments should still make every effort to receive the best price possible. Documentation on all
quotes should be retained.
B. $10,000 to $50,000: 3 quotes needed
For purchases in this price range, at least three quotes shall be obtained. Quotes may be obtained by
telephone or in writing. Documentation on all quotes will be retained. The documentation will include the
date, time, vendor contact name, phone number, email (if applicable), price quoted and any reasons for
acceptance or refusal of the quote.
C. $50,000 or More: Competitive Bids
For purchases in this price range, competitive bids shall be obtained from at least 3 vendors. Bids do not
need to be sealed but shall be in writing. See Section 10 on competitive bidding for a detailed description
of the procedures to be followed.
9. PUBLIC WORKS PROJECTS
Public works projects are defined by RCW 39.04.010 to include but are not limited to work, construction,
alteration, repair, or improvement (other than ordinary maintenance, engineering analysis, and design and
other professional services) executed at the City’s cost, or which is by law a lien or charge on any property
therein. If the City contracts out for maintenance or repairs, the work is a public work for bidding and prevailing
wage purposes.
A. Defining Project Costs
The cost of a public works project includes the costs of materials, supplies, equipment, and labor on the
construction of that project. It is important to determine the estimated total construction of each project in
order to correctly apply bid limit dollar amounts to determine if the public works project must be competitively
bid. If the total project amount is over the bid thresholds, then all contracts, no matter the individual dollar
amount, must be procured through the bid process. The estimate may be prepared by an outside third party;
however, the final cost estimate must be validated by the City.
B. City Labor
The City may use Public Works staff to perform and execute all projects not exceeding $116,155 (multiple crafts), or
not exceeding $75,000 (single craft). RCW 35.23.352. These projects include equipment, material, supplies, and
labor costs. However, the City must provide a report to the state auditor of the costs of all public works in excess of
$5,000 that are not let by contract. For any project using City workers that costs in excess of $25,000, the City must
publish a description of the project and its estimated cost in its official newspaper at least 15 days before beginning
the work. RCW 39.04.020.
C. Bid Requirements
Washington State law requires the City to call for bids whenever the cost of a public work will exceed $116,155,
if more than one craft or trade is involved. If only a single craft or trade is involved, or if the project is for street
signalization or street lighting, bids must be called for if the cost is greater than $75,000. The City has
established the following additional guidelines for the bidding process:
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1) Public Works Projects $0 to $500: No competitive bidding is needed.
2) Public Works Projects $501 to $2,500: Solicit 3 informal quotes by telephone or in writing.
3) Public Works Projects $2,501 to $10,000: Solicit 3 informal quotes by telephone or in writing,
preferably from the Small Works Roster.
4) Public Works Projects $10,001 to $35,000: Solicit 3 quotes from the Small Works Roster.
5) Public Works Projects $35,001 to $150,000: Solicit quotes from at least five contractors on the Small
Works Roster in a manner that will equitably distribute opportunities.
6) Public Works Projects $150,001 to $300,000: Solicit 5 quotes from Small Works Roster and notify the
remaining contractors on the Roster that quotes on the work are being sought.
7) Exceptions. If the public works project is $250,000 or greater and is funded in whole or in part
with federal funds, a formal bid process is required. This threshold is set by the federal government
at 2 CFR § 200.88 and 48 CFR § 2.101 (“Simplified acquisition threshold”) and is subject to periodic
adjustment for inflation pursuant to 41 U.S.C. § 1908.
8) Public Works Projects More than $300,000: Advertise and call for bids using the formal bid
process.
All contracts are to be awarded to the lowest responsible bidder. RCW 39.04.350 outlines criteria that a bidder
must meet in order to be considered responsible.
D. Small Works Roster
If the public works contract is less than $350,000, state law authorizes cities to use a small works roster process
rather than the general competitive bidding requirements to award public contracts. The City has contracted with
MRSC (Municipal Research and Services Center) for the use of a statewide electronic database for small public
works contractors, consulting services, and vendors.
E. Limited Public Works Process
The limited public works process is a type of small works roster process that applies only to contracts estimated to
cost less than $50,000. While no advertisement is required, the City must still solicit electronic or written
quotations from a minimum of three contractors from the appropriate Small Works Roster. This process is
described in RCW 39.04.155(3) and allows the City to waive the payment and performance bond requirements of
Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW. However, prevailing wage affidavits
and insurance are still required. Consult with the City Attorney for prior approval when waiving both of these
requirements.
F. Prevailing Wages
The City is required by RCW 39.12.040 to require contractors to pay prevailing wages on all public works contracts.
A “Statement of Intent to Pay Prevailing Wages” must be received from a contractor before any payment is made,
and an “Affidavit of Wages Paid” must be received following final acceptance of the work.
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G. Bid Deposit, Performance Bond, and Payment Bond
The City may require a bid deposit when soliciting competitive quotes or bids. The bid deposit can be in the form of
a certified check or bid bond in an amount equal to and not less than 5% of the total bid and shall be specified in
the call for bids. All public works contractors shall furnish a performance bond and a payment bond in an amount
equal to the total amount of the contract on a form approved by the City Attorney. In lieu of a performance bond
on contracts of $150,000 or less, a contractor may request to have 10% of the contract retained for a period of 30
days after the date of final acceptance. The request will be evaluated and accepted or rejected by the City
Attorney.
H. Retainage
Chapter 60.28 RCW outlines the requirements related to retainage. The intent of the retainage is to guarantee that
laborers and material suppliers will be protected for payment of any claims arising under the contract and with
respect to taxes, increases, penalties or liens related to a public improvement project (RCW 60.28). Retainage may
also be used to satisfy tax claims by the Department of Revenue and/or the City, prevailing wage related claims by
the Department of Labor and Industries, unemployment compensation related claims by the Employment Security
Department, and contract performance claims by the City itself. State law requires the City to withhold up to 5% of
the contract price for retainage purposes.
I. Public Works over $1 Million
RCW 39.30.060 specifies that in order for their bid to be considered responsive, every bidder for a public works
contract of over $1 million must submit (either with their bid or within one hour of the bid submittal time) the
names of all subcontractors that will be used for heating, ventilation and air conditioning, plumbing and electrical
work.
J. Alternative Public Works Contracting Procedures
Chapter 39.10 RCW permits alternative public works contracting procedures. The State legislature finds
that the traditional process of awarding public works contracts in lump sum to the lowest responsible
bidder is a fair and objective method of selecting a contractor. However, under certain circumstances,
alternative public works contracting procedures may best serve the public interest if such procedures are
implemented in an open and fair process based on objective and equitable criteria. If the City desires to
utilize the alternative procedures, it shall follow the requirements set out in RCW 39.10.
10. COMPETITIVE BIDDING PROCESS
A. Public Notice
RCW 35.23.352(1) sets out the advertising requirements for the public works bidding process. For all contracts
that require bids, notice shall be published in the official newspaper at least 13 days prior to the due date for
bids.
B. Bid Specifications
Bid specifications should incorporate a clear and accurate description of the technical requirements for the
material, product, or service to be purchased. Such descriptions should not contain features that unduly restrict
competition.
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When it is impractical or uneconomical to make clear and accurate description requirements, a “brand name or
equal” description may be used. The responsibility of demonstrating to the City’s satisfaction that a product is
“equal” to that specified shall be on the vendor proposing the substitution.
Requests for approval of substitutions must be made with sufficient time to allow the City to adequately review
the proposal, including time for vendors to respond to questions and requests for additional information or
clarification. The City has no obligation to accept proposed substitutions.
Acceptance of a substitute product proposed as an “equal” to that specified will be made in writing. If this
acceptance occurs prior to the bid, other bidders will be notified to the extent practical.
C. Award
The contract will be awarded to the lowest responsive and responsible bidder whose bid meets the
requirements and criteria included in the invitation for bids, or all bids will be rejected. RCW 39.04.350 outlines
criteria that a bidder must meet in order to be considered responsible. The City also requires that the contractor
must:
Have or agree to obtain a current City business license
Be current with all applicable licenses, taxes, and fees owed to the City of Tukwila
In addition, the City adopts the following supplemental criteria which may be used in connection with specified
projects:
The ability, capacity, and skill of the bidder to perform the contract or provide the service required
The character, integrity, reputation, judgment, experience, and efficiency of the bidder
Whether the bidder can perform the contract within the time specified
The quality of performance of previous contracts or services
The previous and existing compliance by the bidder with laws relating to the contract or services
Such other information as may be secured having a bearing on the decision to award the contract
When using the supplemental criteria described above, the City will include the supplemental criteria in the
bidding documents, together with a basis for evaluation, deadline for bidder to submit required
documentation, and deadline for bidder to appeal a “not responsible” determination.
When a trade-in option exists and is in the City’s best interest, the price offered on the trade-in will be
considered when determining the lowest responsive and responsible bid.
RCW 39.30.040 allows any local sales tax revenue generated by the purchase to be considered in determining
the lowest responsive and responsible bid. Other preferences favoring local businesses are not permitted.
D. Cancellation
An invitation for bids may be cancelled. Additionally, the City (at is sole discretion) may choose to reject any or
all bids, in whole or in part. A resolution is the preferred method for rejecting all bids; examples may be
found in the City’s Digital Records Center or by contacting the City Clerk’s Office.
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E. Bid Submittal
Bids will be submitted as specified in the Invitation for Bid by the appointed date and time listed in the
invitation. Each bid will be dated, and time stamped as it is received. Late bids will not be accepted. If the bid
is for a sealed bid process, all qualified bids will be opened and read aloud publicly at the appointed time.
No City representative shall inform a contractor of the terms or amount of any other contractor’s bid for the
same project prior to the bid opening date and time. Once bids have been submitted (and opened, if the bids
are sealed), the City may not negotiate with bidders. The contract must be awarded to the lowest responsive
and responsible bidder, or else all bids must be rejected.
A written record shall be made of each contractor’s bid on a project and of any conditions imposed on the bid.
Immediately after an award is made, the bid quotations shall be recorded, open to public inspection, and
available by telephone inquiry.
F. Bid Security
RCW 35.23.352(1) provides that each bid must be accompanied by a bid proposal deposit in the form of a cashier’s
check, postal money order, or surety bond to the City Council for at least 5% of the bid amount, including sales tax.
The statute adds that “no bid shall be considered unless accompanied by such bid proposal deposit.”
G. Non-Collusion Affidavit
Each bidder shall be required to warrant that their bid is genuine, and that they have not entered into collusion
with other bidders, by submitting with their bid an executed and notarized affidavit on a form approved by the
City Attorney.
11. SERVICE CATEGORIES
There are several different categories of services, so it is important to determine what service you need
because that may guide the manner of solicitation.
A. Professional Architectural and Engineering Services
Professional architectural and engineering (A&E) services are services provided by any person, other than
an employee of the agency, that fall under the general statutory definitions of:
Chapter 18.08 RCW (Architects)
Chapter 18.43 RCW (Engineers and Land Surveyors)
Chapter 18.96 RCW (Landscape Architects)
1) Purchase of A&E services.
By law, A&E consultants are first selected based upon their qualifications as opposed to price. See Chapter
39.80 RCW. This statute says that a city may not consider price in the selection process for professional
A&E services. Rather, the City must select the most qualified firm and then negotiate a price for the work
contemplated.
There are two ways to select an A&E consultant:
Use a Request for Proposal (RFP). This requires the City to draft a written scope of the
project and list the criteria used to select the consultant from the City’s MRSC architectural,
landscape architectural, and engineering service roster pursuant to the process in Chapter
39.80 RCW.
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Use a Request for Qualifications (RFQ). This requires following the formal RFQ process in
Chapter 39.80 RCW.
Once consultants have submitted their proposals or qualifications, as applicable, the City will negotiate a
contract with the most qualified firm at a price the City deems fair and reasonable. In making its
determination, the City will take into account the estimated value of the services to be rendered as well as
the scope, complexity, and professional nature of the service to be provided. If the City is unable to
negotiate a satisfactory contract with the firm selected at a price that is determined fair and reasonable,
negotiations with that firm will be formally terminated. Another firm will then be selected, and the process
continued until an agreement is reached or the process terminated.
2) Publication.
RCW 39.80.030 requires that the City shall publish in advance the City's requirement for professional
services. The City may comply with this section by: (1) publishing an announcement on each occasion
when professional services provided by a consultant are required by the City; or (2) announcing generally to
the public its projected requirements for any category or type of professional service to create a Consultant
Roster. Advertising for the Consultant Roster must be done at least once a year by MRSC on the City's
behalf. The MRSC Consultant Roster will distinguish between professional architectural and engineering
services as defined in RCW 39.80.020 and other consulting services. Firms or persons providing consulting
services shall be added to the appropriate Roster at any time they submit a written request and necessary
records. The City reserves the right to publish an announcement on each occasion when professional
services or other consulting services are required.
B. Personal Services
Personal services are those provided by independent consultants that require specialized knowledge,
advanced education, and/or professional licensing to provide intellectual service. This includes but is not
limited to accountants, attorneys, strategic planners, studies/analysis, and trainings.
Purchases of Personal Services. Personal services can be purchased in a variety of ways. The City
can send a written solicitation to qualified firms or individuals describing the needed services.
This solicitation should request prices, schedules, and qualifications. If helpful, utilize the MRSC
Consultant Roster. Alternatively, develop a formal RFP and advertise for the services desired.
C. Purchased Services
Purchased services include those provided by vendors for routine, necessary and continuing functions of
the City. These services are usually repetitive, routine, or mechanical in nature, support the agency’s day-
to-day operations, involve the completion of specific tasks or projects, and involve minimal decision-
making. There are a number of purchased services, however, that hover over that thin gray line between
purchased services and public works contracting. For example, the Department of Labor and Industries
considers some service contracts, such as HVAC maintenance or road striping, to be public works projects
and subject to public bidding requirements. If a particular contract is very near the gray line, the
conservative approach is to consider it a public works contract.
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Purchases of Purchased Services. Similar to personal services, purchased services can be
procured in a variety of ways. The City can obtain quotes, or use a formal bid, or an RFP. If
obtaining quotes, include request for price, schedules, and qualifications. Evaluate proposals
received and determine the lowest responsive bidder.
12. MATERIALS, SUPPLIES, EQUIPMENT (UNRELATED TO PUBLIC WORKS, SERVICES, A&E)
Distinguishing between public works and materials, supplies, and equipment not used in public works is
important because different bidding requirements apply to each. Some “materials, supplies, and
equipment” not used in connection with a public works project or improvement are fairly easy to identify
(rubber bands, fire trucks, copy machines), as well as many “services.” Some materials, supplies, and
equipment are more ambiguous. Other materials, including telecommunications, data processing, and
software have specific purchasing guidelines established in state law.
A. Telecommunications, Data Processing and Software. The State Legislature, recognizing the
unique aspects of computer and telecommunication systems, established an alternative process for making
such purchases. RCW 39.04.270, which is available to all municipalities, allows purchases through use of an
alternative competitive negotiation process requiring, at a minimum, the following steps:
1) A request for proposals (RFP) must be published in a newspaper of general circulation at least
13 days before the last date on which the proposals will be received.
2) The RFP must identify significant evaluation factors, including price, and their relative
importance.
3) The City must provide reasonable procedures for technical evaluation of the proposals,
identification of qualified sources, and selection for awarding the contract.
4) The award must be made to the qualified bidder whose proposal is “most advantageous” to
the City.
5) The City may reject all proposals for good cause and request new proposals.
B. Additional guidance regarding purchases of materials, supplies and equipment can be found in
Section 8. Refer to the Procurement Policy Table in Section 1 of this policy, and ask questions if you are
uncertain.
13. EXCEPTIONS TO THE COMPETITIVE PROCESS
State law provides for exceptions to the bidding requirements outlined in above sections. These exceptions
only waive the competitive bidding requirements, not the contractual requirements, approvals, or
insurance requirements. City staff may not use personal preference as the basis for claiming a single source
of supply.
Exceptions to the competitive bidding requirements include:
Purchases that are clearly and legitimately limited to a single source of supply such as:
o Licensed or patented good or service
o Items that are uniquely compatible with existing equipment, inventory, systems, programs or
services
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o Meets City standards (i.e. water meters)
o Factory-authorized warranty services
A resolution is the preferred method for sole source purchases; examples may be found in the
City’s Digital Records Center or by contacting the City Clerk’s Office.
Purchases involving special facilities or market conditions
o Item is of special design, shape or manufacture that matches or fits with existing equipment,
inventory, systems
o Item will be sold before the City can conduct the bid process when over bid thresholds
Purchases in an emergency (see TMC Chapter 2.57, “Emergency Management”)
A resolution is the preferred method for declaring an emergency as a prerequisite to purchases
during an emergency; examples may be found in the City’s Digital Records Center or by contacting
the City Clerk’s Office.
Inter-Governmental Cooperative Purchases
Purchases of insurance or bonds
Pollution control facilities and some neighborhood “self-help” projects may be exempt from bidding
requirements
Cities may hire the state or county to do road projects without going out for bids
Real property. Acquisition of real property is exempt from the competitive bidding requirements of this
policy. Upon approval of the City Council, the City Administrator may proceed to acquire real property
through negotiation. Such negotiations shall be based upon an independent fee appraisal of the
property.
14. DISPOSAL OF SURPLUS PROPERTY
A. Policy Statement
City assets in excess of $500 that are no longer useable, are no longer of value to the City, or are surplus to
the City’s needs may not be removed from City ownership, sold, or in any other way disposed without a
declaration by resolution of the City Council. Similarly, items in excess of $100 that are no longer useable,
are no longer of value to the City, or are surplus to the City’s needs may not be removed from City
ownership, sold, or in any other way disposed without approval by the Mayor or City Administrator. All
items of $100 or less may be disposed in accordance with the direction of department directors.
B. Definitions
City Asset means any tangible item purchased with City funds valued in excess of $100.
TIS Asset means computers and related equipment, fax machines, printers, scanners and copiers, cell
phones, telephone equipment, pagers, software or systems, and anything the Tukwila Technology and
Innovation Services Department is requested or required to install, connect, or service.
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C. Procedures
1) Disposal of City property valued less than $499 shall follow this process:
When a City department determines an item of this value is surplus to its needs, the
department shall notify the Mayor’s Office and all other City departments of the item’s availability, seeking
first to reassign its use to another City department. TIS Assets shall be exempt from this notification
requirement to City departments other than the Mayor’s Office.
If no other departments are interested in the item, it may be disposed in the method
seen most prudent by the department director. The director should first notify the Mayor’s Office and
Finance Department of the intended method of disposal prior to finalizing the process for disposal.
2) Disposal of City property valued at $500 or more shall follow this process:
Reassignment of Assets. When a City department makes a determination that a City or
TIS Asset with a value of $500 or more is surplus to its needs, the department shall notify the Mayor’s
Office. The Mayor’s Office shall assess whether the City Asset can be reassigned within another City
department where it can be of use or value. TIS Assets shall be exempt from the requirement to be
reassigned to other City departments.
Minimum Requirements. If it is not possible to reassign the City Asset or the item is a TIS
Asset, the Mayor’s Office shall prepare the asset for a declaration of surplus by the City Council. Each asset
requiring a declaration of surplus must have a value assigned and a recommended method of disposal.
Methods of Disposal. The primary method of disposal to the general public is by sale.
Recognized methods of sale include direct sale, sealed bid, trade-in or auction. Other methods of disposal
to the general public must be clearly detailed in writing and must have the consent of the City Council.
Transfer to Another Public Agency. The City Council may transfer a surplus asset to another
public agency upon written request and a determination that it is in the public interest to do so. Such request
shall specify the asset and the inability of the other public agency to otherwise afford to buy it. The City Council
may elect to trade assets, authorize the Mayor to negotiate payment or transfer the asset without compensation.
A resolution is the preferred method for surplussing of City property; examples may be found
in the City’s Digital Records Center or by contacting the City Clerk’s Office.
3) Additional Requirements:
Assets over $50,000. If the value of the asset is estimated to be more than $50,000, and
if the sale or conveyance is to another governmental entity, the provisions of RCW Section 39.33.020 shall
apply. This includes several requirements, including a public hearing and certain notice provisions.
Utility Assets. If the asset was originally purchased for utility purposes, the provisions of
RCW Section 35.94.040 shall apply. This includes several requirements, including a resolute and public
hearing.
Trade-Ins: Trade-in of old equipment to upgrade similar or reasonably related equipment is
permitted when it is in the best interest of the City. The requesting Department Director shall be responsible for
the sale, trade, or other disposition of surplus property and scrap belonging to the City of Tukwila when used for
a trade-in. Trade-ins must be negotiated, documented at “Fair Market Value” by the Department Director, and
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declared surplus ahead of time by the City. Fair Market Value can be determined by finding comparable units
that have been sold at online auctions.
Other: If the asset proposed as surplus is evidence released by the Court, seized assets or
unclaimed property, the Mayor’s Office shall review the appropriate statutes prior to asking the City
Council to declare it surplus.
4) Final Determination of Value
When disposal is made to the general public through direct sale, sealed bid or auction, final
determination of value shall be the highest responsible bid or offer.
5) Prohibited Benefit
It is recognized that City Council members and Mayor are prohibited by state law from benefiting
from the disposal of public assets of the City. Great care should be taken to assure that a perception of benefit
to employees and others doing business with the City does not occur.
6) Delegation of Authority
The City Council may elect to delegate the task of declaring items surplus to the Mayor by amending
or adding to this policy and identifying the conditions thereof within this policy. If such a delegation is made, the
prohibition of benefiting from the disposal of public assets is extended to the Mayor and his/her immediate
staff.
15. ADDITIONAL CONSIDERATIONS
A. Certificates of Insurance
The contractor or consultant may be required to provide the City with a Certificate of Insurance, naming the City
as a primary and noncontributory additional insured with an additional attached endorsement. Insurance
requirements are determined by WCIA (Washington Cities Insurance Authority) and the City Attorney.
B. State Contractor’s License
It is unlawful for the City to hire anyone to perform public work on our property that does not have a valid State
of Washington Contractor’s License. If someone is not properly licensed, DO NOT HIRE THEM. You may look up
a contractor to determine if they have a valid Contractor’s License at via the Washington State Department of
Labor and Industry’s website: https://lni.wa.gov/licensing-permits/contractors/hiring-a-contractor/verify-
contractor-tradesperson-business
C. City Business License
A City of Tukwila business license may be required for any person or business working inside the city limits. See
TMC Title 5, “Business Licenses and Regulations” for specifics.
16. REFERENCES
Revised Code of Washington (RCW) 39.80 (Contracts for Architectural and Engineering Services)
RCW 39.04 (Public Works)
RCW 39.34 (Interlocal Cooperation Act)
RCW 35A.40 (Fiscal Provisions applicable to Code Cities), 35.23 (Second Class Cities)
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Municipal Research Services Center (MRSC) publication: “City Bidding Book—Washington State”
Federal Office of Management and Budget (OMB) Uniform Guidance CFRs: Title 2 CFR 200. et al
City of Tukwila Grants Policy (TBD)
Procurement Card (Pcard) User Manual
City of Tukwila Administrative Policy - Equity Policy
City of Tukwila Administrative Policy 400-05 – Processing of Contracts/Agreements
City of Tukwila Capital Improvement Program Policies and Procedures
17. GLOSSARY
Amendment – Written modification or addition to a purchase order or contract authorized by the appropriate
authority.
Bid – The executed document submitted by a bidder in response to a notice inviting bids, a proposal, or a
request for qualifications.
Bid Bond – A bond or deposit submitted with a bid, for a sum not less than 5% of the bid amount (including sales
tax). Designed to help ensure that a bid has been made in good faith and that the bidder will enter into a contract
if a bid is accepted.
Bidder – A person or legal entity who submits a bid in response to a solicitation.
Competitive Bidding – The submission of prices by individuals or firms competing for a contract, privilege, or
right to supply merchandise or services.
Contract – A verbal or written, legally binding mutual promise between at least two parties.
Designee – A duly authorized and appointed representative of an employee that holds a superior position to
the person appointed to represent him or her.
Emergency – Unforeseen circumstances beyond the City’s control that present a real, immediate threat to the
proper performance of essential functions, or that will likely result in material loss to property, bodily injury, or
loss of life if immediate action is not taken.
“Equitably distribute” – Means 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.
Lowest (Responsive and) Responsible Bidder – The bidder submitting the lowest price that is also capable of
performing the proposed contract. See also “responsive bidder” and “responsible bidder.”
Non-Professional Services or Purchased Services – Services provided by vendors for routine, necessary and
continuing functions of a local agency, relative to a physical activity. Examples include, but are not limited to:
Courier services
Janitorial services
Disposal services
Vehicle inspection, repair or up-fitting
Office furnishing installation
HVAC system maintenance
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Ordinary Maintenance – Work not performed by contract and that is performed on a regular basis (daily,
weekly, monthly – but not less than once per year) to service, check or replace items that are not broken. Also
defined as work not performed by contract that is not regularly scheduled, but is required to maintain an asset
so that repair does not become necessary.
Prevailing Wages – The hourly wages, usual benefits, and overtime paid in the largest city in each county to the
majority of workers, laborers, and mechanics. Prevailing wages are established by the Washington State
Department of Labor and Industries for each trade and occupation employed in the performance of public
work. They are established separately for each county, and are reflective of local wage conditions.
Professional Services – Services which provide professional or technical expertise to accomplish a specific study,
project, task, or other work statement. Examples include, but are not limited to:
Architectural, engineering or design services
Accounting and auditing
Bond or insurance brokerage
Consulting services
Legal services
Real estate appraisals or title abstracts
Relocation assistance
Surveying
Soils analysis or core testing
Water quality monitoring
Public Work – All work, construction, 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.
Quotation – A statement of price, terms of sale, and description of goods or services offered by a prospective
seller to a prospective purchaser, usually for purchases below the amount requiring formal bidding. For
professional service contracts, quotes would typically include the qualifications of the provider and may or may
not include pricing information depending on the situation.
Request for Proposal (RFP) – All documents, whether attached or incorporated by reference, utilized for
soliciting competitive proposals. The RFP procedure permits negotiation of proposals and prices, as distinguished
from competitive bidding and a notice inviting bids. The procedure allows changes to be made after proposals
are opened and contemplates that the nature of the proposals and/or prices offered will be negotiated prior to
award.
Request for Qualification (RFQ) – A document generally used for obtaining a summary of qualification from
prospective providers of professional services.
Responsible Bidder – A person or legal entity who has the capability in all respects to perform in full the
contract requirements, and the integrity and reliability which will assure good faith performance.
Responsive Bidder – A person or legal entity who has submitted a bid conforming in all material respects to the
terms and conditions, specifications and other requirements in a request for bids.
Sealed Bid – A bid which has been submitted in a sealed envelope to prevent its contents from being revealed
before the deadline for the submission of all bids.
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Sole Source – An award for a purchase to the only reasonably known capable vendor due to the unique nature
of the requirement, the vendor, or market conditions.
Specifications – A description of what the purchaser seeks to buy or accomplish – and consequently what a
bidder must be responsive to in order to be considered for award of a contract. May be a description of the
physical or functional characteristics, or the nature of a supply or service. May also include a description of any
requirements for inspecting, testing, or preparing a supply or service item for delivery.
Surplus property – Any tangible, personal property owned by the City that is no longer needed or usable,
presently or in the foreseeable future.
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City of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NO.
2245 §1 (PART), AS CODIFIED AT TUKWILA MUNICIPAL
CODE SECTIONS 3.32.030, “BIDS,” AND 3.32.040,
“UNBUDGETED EQUIPMENT OR FIXED ASSET ITEMS;”
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, the process for unbudgeted equipment or fixed asset items was
originally adopted in 2002 and the City Council routinely reviews processes and
procedures to validate their efficacy; and
WHEREAS, the expenditure of publicfundsfor the purchase of and contracting for
goods, services, supplies, and materials shall comply with all applicable state law
requirements as set forth in the Revised Code of Washington (RCW)and the Washington
Administrative Code (WAC); and
WHEREAS, a comprehensive overhaul of the City’s Purchasing Policy has recently
been completed by a cross-departmental team including the City Attorney’s Office; and
WHEREAS, appropriate controls, including City Council authority, are captured in
this revised Purchasing Policy, which is intended to be the authoritative source for the
expenditure of public funds in the City of Tukwila and separately adopted by the City
Council by resolution; and
WHEREAS, elimination of Sections 3.32.030 and 3.32.040 from the Tukwila
Municipal Code will clarify the consolidation of direction in the revised Purchasing Policy;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Sectionl. Repealer. Ordinance No. 2245 §1 (part), as codified atTukwila Municipal
Code (TMC) Sections 3.32.030, “Bids,” and 3.32.040, “Unbudgeted Equipment or Fixed
Asset Items,” is hereby repealed, thereby eliminating TMC Sections 3.32.030 and
3.32.040.
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Section 2. Corrections by City Clerk or Code Reviser Authorized. 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 3. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance orits 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 ofthis ordinance or its application to any other person or situation.
Section 4. Effective Date. This ordinance ora summary thereof shall be published
in the official newspaperof 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
day of ,2020.a Regular Meeting thereof this
ATTEST/AUTHENTICATED:
Allan Ekberg, MayorChristy O’Flaherty, MMC, City Clerk
Filed with the City Clerk:__
Passed by the City Council:
Published:_____________
Effective Date:__________
Ordinance Number:______
APPROVED AS TO FORM BY:
Office of the City Attorney
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