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Home My WebLink AboutReg 2013-07-15 Item 3E - Interlocal Agreement - Master Contract Usage Agreement with WA State Department of Enterprise Services (State Purchasing)COUNCIL AGENDA SYNOPSIS Meetin Date 07/15/13 Mayor's review Council review ITEM INFORMATION ITEM NO. 3.E. 35 STAFF SPONSOR: BOB GIBERSON ORIGINAL AGENDA DATE: 07/15/13 AGENDA ITEM TITLE Inter Master local Agreement for State Purchasing Contract Usage Agreement with the State of Washington CATEGORY j Discussion Mtg Date Motion Date 07/15/13 E Resolution Mtg Date r Ordinance Mtg Date LI Bid A2vard Mtg Date Public Hearing Mtg Date E Other Mtg Date 6,1 Mtg SPONSOR T Council 11 Major El HR E DCD E Finance E Fire L IT E P&R fl Pollee Z P117 SPONSOR'S In the past, the City was able to access the State of Washington's cooperative purchasing SUMMARY through the state contracts. The state has recently replaced General Administration with the Department of Enterprise Services and has changed the cooperative purchasing contract to a Master Contract Usage Agreement. There is now no cost to participate in the purchasing cooperative. Council is being asked to approve the interlocal Master Contract Usage Agreement with the State of Washington. REVIEWED BY E COW Mtg. E CA&P Cmte E F&S Cmte Z Transportation Cmte LI Utilities Cmte E Arts Comm. I1 Parks Comm. E Planning Comm. DATE: 07/09/13 COMMITTEE CHAIR: KATE KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Public Works Department Majority Approval; Forward to Regular Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 07/15/13 MTG. DATE ATTACHMENTS 07/15/13 Informational Memorandum dated 7/05/13 Master Contract Usage Agreement Purchasing from Washington State Contracts Master Contracts Usage Agreement FAQ Sheet Master Contracts Fee Change Minutes from the Transportation Committee meeting of 07/09/13 35 36 TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL �� nn�n v��n�n��n n��n�x~��~ u�n�~nmn��n=��n��nmn Mayor Haggerton Transportation Committee FROM: Bob Gibergon, Public Works Director BY: Pat Brodin, Operations Manager DATE: July 5, 2013 SUBJECT: Inter local Agreement for State Purchasing WA State Master Contract Usage Agreement ISSUE Approve the Master Contract Usage Agreement (MCUA) with the State of Washington's Department of Enterprise Services to continue using state contracts as a purchasing resource. BACKGROUND Through the state's bid list, the City was able to access cooperative purchasing through state contracts. State government has undergone a reconfiguration resulting in an elimination of the General Administration Department, which administered the Washington State Purchasing Cooperative and state contracts. The Department of Enterprise Services was created to replace General Administration. In addition, the entire state contract purchasing cooperative has been revamped. At the end of June 2013, all membership in the state purchasing cooperative ended. If the City would like to continue using state contracts, which provide numerous purchasing efficiencies including the P-card system, the new Master Contract Usage Agreement will need to be in effect. FINANCIAL IMPACT Under the old state contract system, the City paid an annual fee to participate in the purchasing cooperative. With the new MCUA SVSt8Dl, there is no cost to the City of Tukwila to use state contracts; with an annual savings of $2,000 to the 501 Equipment Rental Fund. RECOMMENDATION The Council is being asked to authorize the Mayor to sign the Master Contract Usage Agreement with the State of Washington Department of Enterprise Services and consider this item on the Consent Agenda of the July 15, 2013 Regular meeting. Attachments: Master Contrac Usage Agreement Purchasing from Washington State Contracts Master Contracts Usage Agreement FAQ sheet Master Contracts Fee Change W: \Shareo Copy o"ly\T=pu"m Memo mco» State Bid List o7-o 'naoc, 38 MASTER CONTRACT USAGE AGREEMENT This Master Contract IJsage Agreement (the ^ ) is made pursuant to Chapter 39.34 of the Revised Code of Washington, and other applicable laws, by and between the state of Washington (the "State"), acting by and through the Department of Enterprise Services ("DES"), an agency of the State, and CITY OF TUKWILA Entity Name a state agency, or local or federal agency or entity, or public benefit nonprofit corporation, or any tribe located in the State ("Buyer"). 1. Purpose: The purpose ofthe Agreement Agreement is to estabiish the terms and conditions for when Buyer purchases or acquires goods and services for its direct use under contracts entered into by DES that perrnit such use ("Master Contracts"). 2. Duration: This Agreement will become effective on date of execution, and will continue in full force and effect until thirty (30) days following receipt ofwritten notice from either party canceiiing this Agreement. 3. Agreement Contact Information: Contact person to whorn contract documents and related communications are to be mailed or faxed. Organization Name: CITY OF TUKWILA Tax Identification Number: 91-6001519 Unified Business Identifier Required for Non-Profit: Contact Name: PAT BRODIN Title: OPERATIONS MANAGER Address: 14000 INTERURBAN AVENUE SOUTH City: ruxVVIm State: WA Zip: 98168 Phone Number: (206) 433-1861 Email Address: PAT onoo/mmTummLAWA oov 4. Cancellation of Agreement: This agreement can be terminated by either party upon 30 days written notice provided to DES at: Email to: mcua@des.wa.gov OR Mail to: WA Dept of Enterprise Services MCUA, Attn: Kris Gorgas P.O. Box 41409 Olympia, WA 98504-1409 5. Financial Responsibility: Buyer wiil deal directly with the Master Contract contractor, supplier, or service supplier ("Contractor") for any purchases Buyer makes pursuant to this Agreement and under a Master Contract DES does not accept any responsibili financial or otherwise, for any purchase Buyer makes under a Master Contract. VegbOakdaiv AWL' 6. Compliance with Other Laws: Each o[the parties niUconlyvvhballapp|icub\ohx\cra, state, and local law and regulations governing its own purchases. 7. Master Contract Audits: Buyer agrees to cooperate with DES, the Office ofthe State Auditor, federal officials, or any third party authorized by law, rule, regulation or contract, in any audit conducted by such party related to any Master Contract(s) that Buyer has made purchases from pursuant to this Agreement, including providing records related to any purchase from a Master Contract. In addition, Buyer agrees to provide, upon request from DES, documentation to confirm its eligibility to use Master Contracts. 8. Dispute Resolution: If there are any disputes between Buyer and a Contractor, Buyer agrees to (a) provide DES written notice ofthe nature ofthe dispute; and (b) unless otherwise provided in the Master Contract or as set forth below, work in good faith with the Contractor to resolve the dispute without the involvement ofDES. DES may, upon request, review and assist in the resolution of a dispute, and if DES chooses to do so, the Buyer will cooperate with DES in that resolution process. In its sole discretion, DES may, but is not obligated to, upon written notice to Buyer, resolve disputes with a Contractor on behalfofBuyer and all other state, local, and federal agencies, local governments, and public benefit nonprofit corporations with similar or related disputes with such Contractor. 9. No Separate Entity: No separate lega or administrative entity is intended to be created by or for the administration of, this Agreement. 10. Hold Harmless: Each party agrees to defend, i and hold the other party harmless from any claim arising from such party's sole negligent, reckless, or willful misconduct. 11. Entire Agreement: This Agreernent sets forth the entire agreement between the parties, and supersedes any other prior written agreements between the parties, with respect to the subject matter hereof. IN WTTNESS WHEREOF the parties having read this Agreement, agree to it in each and every particular, and have executed it below. APPROVED APPROVED WASHINGTON STATE DEPARTMENT OF ENTERPRISE SERVICES Entity Name CITY OF TUKWILA Entity Name Signature Signature Roselyn Marcus, Assistant Director Name/Title JIM HAGGERTON, MAYOR Name/Title Date Date 40 Washington State Departrrtent of Enterprise Services Purchasing from Washington State Contracts All membership to the Washington State Purchasing Cooperative (Co -op) will end as of June 30, 2013. This program will cease to function as of July 1, 2013 and be replaced by the Master Contracts Usage Agreement (MCUA). Customers who wish to make purchases off of Washington State Contracts need to have signed the following agreements: • For purchases made before July 1, 2013, an Inter -local agreement or amendment for membership in the Washington State Purchasing Co- operative (Co -op). • For purchases made after July 1, 2013, a Master Contracts Usage Agreement (MCUA). Before July 1, 2013 After July 1, 2013 Purchasing Cooperative Members (Co -op) Master Contract Customers Inter -local agreement or amendment for membership in the Master Contracts Usage Agreement (MCUA) Washington State Purchasing Co- operative (Co -op) To use state contracts entities become Co -op members. To use state contracts entities sign a Master Contracts Usage Agreement Members include: • State Agencies • State Boards • State Commissions • Higher Education Institutions • Offices of Separate Elected Officials Entities that can join by agreement: • Local Government Agencies • Federal Agencies • Washington State Tribal Entities • Public Benefit Nonprofit Corporations Entities that can join by agreement: • State Agencies • State Boards • State Commissions • Higher Education Institutions • Offices of Separate Elected Officials • Local Government Agencies • Federal Agencies • Washington State Tribal Entities • Public Benefit Nonprofit Corporations Membership fees apply No membership fee Typically an Inter -local or interagency agreement or amendment required Membership agreements periodically renewed or amended No termination date of agreement A Master Contracts Usage Agreement required More information • Information about the fee program • Print a Master Contract Usage Agreement • Information about eligibility to use State Master Contracts • View a current list of Master Contract Customers • Find a searchable list of Master Contracts • View the Guidelines for Placing Orders from State Master Contracts • Find a list of Department of Enterprise Services contracts staff If you have questions, please contact us at (360) 407 -2214 or MCUA @des.wa.gov. 41 /15 VV4sh 1g torl Dtpal,ti 'It Of Enterprise Services Master Contracts Usage Agreement What 15 the MCUA? The Master Contracts Usage Agreemen (MCw) ma one-time agreement necessary to rneet statutory reqLiirernents aliowing qualifying organizations to use Washington State master contracts Cooperative purchaSing through state contracts provides organizations thal have agreed to terms and conditions the opporturiity to save mil!ions of doflars annually by pooling resources ID Ieverage the rnarket through volume discounts. Authorized organizations are provided access to more than 700 contracts for goods and services to meet all the business needs of their organization at no cost. Legislation • vwACzoo* -060 • vmCzn0-3m-0m • now39.zo.osu • RCW43.19 How much does it cost? There is no cost for the Master Contracts Usage Agreernent Who can sign a MCUA? • State Agencie • State Boards • State Commissions • Higher Education Institutions • Offices of Separate Elected Officials • Local Government Agencies • Federal Agencies • \Jashington State Tribal Entities • Public Benefit Non-profit (pBmp) Oiganzation wtb 501)C)3 tax status that have Bed Powp status with the Secretary m State. For filing information, onto ,mvv=ww.sns°m.yvwm,ps/. More information about purchasing agreements wim Public Benefit won-nmm ROW ns3w.u55. More information about Public Benefit Non-profit designation: RCW 24.03.490. How do [}o|n7 First, check the signed agreement list. If YOLJ are not on this lisI. • Download and print the Master Contracts Usage Agreement (MCUA) • Fill out and sign MCUA Scan and email signed copy of MCUA to MCUAgdes.wa.gov Or Mail signed copy to. DES MCuxaon: Kris Gomw po Box ^woo Olympia. mmn8m04-/4uy A fully executed copy will be scanned and returned to you via email, n you have questions. please cal! the Master Agreement Service Desk 3604072214 or emal MouA�ueam.gov. What can I buy? You can purch ueawmevamatymomdsaouee*imm. Contracts are searchable The following are a few examples 01 the most-used contracts: 42 Contact Information MCUA po Box w*uy Olympia, mw985n4-won (360) 407-2214 • Vehicles (heav dLlty arid passenger) • Copiers • Office equipment and suppUes • Purchasing card • Infant formula • Radio equipment • Fuel • Pharmaceuticals • Furniture • Food • Emission inspection sery e ` Industrial supplies • Travel service • Landscaping equ/pmeot • Faint (various kinds) • Electronic monitoring services • Electrical supplies • Janitorial services How do make a purchase with a state contract? First, check the signed agreernent list, Once you have a current signed MCUA: • Use our contract search 10 Fnd a contract or leam aboLit special purchasing prograrns • Identify a vendor on the contract you wish to use • Contact the vendor citing the contract number you wish to use. contract name and provide your customer number. What if I have additional questions? • Call (360)^or-2zwo, email Mcuxgdes.wa.onv • Please reference the Master Contracts Usage Agreement when asking your question. Services The following services are available as pad of the MCUA • Training and events • WEBS Access to Master contracts • Access to the VVestern States Contracting AIIince (V'JSCA) • Join Purchasing mai!ing Iist to receive email broadcast buUetins • Purchase Authority • 1 Brokering and Procurement Consultation • 11 Master Contracts ` Tier xContract Fee for Janitorial Services • Contract Oversight • Portion of the Personnel Services Charge • OMWBE *Some contracts may not be available for use by all MCUA. See review individual contract summary for who Is eHgible to use the contract, 44 Washington State Department of Enterprise Services Master Contracts �� Change ,��~�� "~�� "�mmange The consolidation of dozens of activities from five agencies into the Department of Enterprise Services (DES) provided an opportunity to streamline the rate structure for our services. In the summer of 2012, the Department conducted a review to confirm the kind of rate structure it should use to cover the costs of the services we provide. The review began with setting principles that guided DES in establishing rates, researching how other service organizations structure their rates, and developing alternatives. The rate principles set by DES are: • The rate is clear, easy to understand and easy to exptain • Customers feel confident about the accuracy of the charges • Customers feel the rate structure will ensure they are paying a fair and equitable share of the total cost • Charges are predictable, consistent and timely • Rates should not create disincentives or barriers for the robust use of enterprise systems or services or enterprise policy when they would be in the state's best interest The curren master contracting fee structure 5 very complicated, with some vendor fees that are set dollar amounts, and others are based on varying percentages of sales. Some fees are by agency allocation and some are agency transaction fees. Yet other fees charge local governments based on the amount of their annual budgets. To simplify this, DES is adopting a single vendor management fee model for all contracting activity. There are no variable percentages and tiers; it is fair and equitable for all contract users. State contract vendors will pay the state .74% of the total spent on contracts. Vendor management fees are a common practice in the public and private sector (19 other states currently have vendor management fees). The new fee model will take effect July 1, 2013. By moving from the current complicated and confusing model to a single management fee for contract use, DES is meeting the rate principles and agency mission to deliver innovative business solutions to meet the needs of those we serve. By removing barriers to contract use like the current complicated rateo, more state agencies and local governments will utilize master oontracte, increasing the potential sales p001 for contract holders. DES is making the process of reporting sales consistent with the process most contract holders are currently familiar with, while making improvements to the system. Tr@iniDgwiUb8prOvdad to those not familiar with the online sales reporting system. For more information contact: Sen/ondoPatonC]8O>4O7-83SO Business Summary — March 2013 46 TRANSPORTATION COMMITTEE - Meeting Minutes July 9, 2013 — 5:15 p.m. — Conference Room #1 City of Tukwila Transportation Committee PRESENT Councilmembers: Kate Kruller; Chair, Dennis Robertson (Absent: Joe Duffle) Staff: Bob Giberson, Frank Iriarte, Cyndy Knighton, Gail Labanara, Lynn Miranda, Robin Tischmak, Pat Brodin, Laurel Humphrey CALL TO ORDER: The meeting was called to order at 5:15 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Tukwila Urban Center — Transit Center Staff is seeking Council approval of an agreement between King County, Tukwila, Burien, SeaTac, and Renton for the design, construction, ownership, and maintenance of the F Line RapidRide Fiber Optic Project. As part of the new infrastructure required by the F Line, fiber optic cables are being installed along the entire route. Additional strands beyond those required for F Line communication needs are being allocated to the five jurisdictions and others for uses to be determined by the cities. This agreement defines how the agencies will work together in implementation of this project, detailing ownership, and maintenance responsibilities. Staff confirmed for Committee members that future maintenance will likely be very minimal and much can be performed by the City. MAJORITY APPROVAL. FORWARD TO JULY 22, 2013 C.O.W. B. Contract Supplement — Services related to the Supplemental Environmental. Impact Statement (SE1S), for Tukwila's Urban Center Plan Staff is seeking Council approval of a contract supplement with Fehr & Peers in the amount of $5,500 in order to complete an air quality impact analysis for the Southcenter Subarea Plan, as part of the Supplemental Environmental Impact Statement (SEIS). This additional funding is required because the original scope of the contract assumed that the consultant team would be able to leverage prior work to assess air quality impact, but the consultant found nothing comparable that would be useful. The SEIS, including this contract supplement, is fully funded by the federal Tukwila Urban Center /Transit Oriented Development grant. MAJORITY APPROVAL. FORWARD TO JULY 15, 2013 REGULAR CONSENT AGENDA. C. Interlocal Agreement — State Purchasing Staff is seeking Council approval of the Master Contract Usage Agreement (MCUA) with the State of Washington's Department of Enterprise Services to continue using state contracts as a purchasing resource. The State's General Administration Department, who previously administered the Washington State Purchasing Cooperative, has been replaced by the Department of Enterprise Services. Existing membership in the purchasing cooperative ended in June 2013, and in order to continue using state contracts, the City must sign a new agreement with the Department of Enterprise Services. MAJORITY APPROVAL. FORWARD TO JULY 15, 2013 REGULAR CONSENT AGENDA. H: \Committee Minutes \Transportation \Trans 070913.docx 47