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Resolution 1561RESOLUTION NO. 1561 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, TO REPEAL AND REPLACE THE CITY OF EDMONDS CONTRACTING AND PURCHASING POLICIES AND PROCEDURES WITH A COMPREHENSIVE UPDATE THERETO. WHEREAS, the City of Edmonds periodically reviews and amends its Contracting and Purchasing Policies and Procedures ("Policies") to incorporate necessary changes based on new laws or the adoption of new or revised internal procedures; and WHEREAS, the Policies have not undergone a comprehensive update in many years; and WHEREAS, recent updates to Washington State law impact the Policies; and WHEREAS, the City Council has reviewed the proposed comprehensive update to the Policies and has determined it to be appropriate to adopt the proposed Policies to reflect the updates to state law and otherwise provide updated, expanded, and clarified procurement guidance to City staff; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHING TON, DO RESOLVE AS FOLLOWS: Section 1. That all previous versions of the Contracting and Purchasing Policies and Procedures, including those adopted by Resolution 1387 and amended by Resolution 1485, are hereby repealed in their entirety. Section 2. That the Contracting and Purchasing Policies and Procedures set forth in Attachment A to this Resolution are hereby adopted in their entirety. RESOLVED this 22 nd day of October 2024. APPROVED : ~~ ATTEST/AUTHENTICATED: 2 FILED WITH THE CITY CLERK: October 17, 2024 PASSED BY THE CITY COUNCIL: October 22, 2024 RESOLUTION NO. 1561 City of Edmonds Contracting and Purchasing Policies and Procedures October 2024 City of Edmonds Purchasing Policies October 2024 Table of Contents 1.0 OVERVIEW 1 1.1 Purpose 1 1.2 Objectives 1 1.3 Scope 1 1.4 Controlling Laws 2 1.5 Compliance with Policies 2 2.0 ETHICS OF PROCUREMENT 3 2.1 Conflicts of Interest 3 2.2 Gifts 3 2.3 Former Employees as Vendors/Consultants/Contractors 3 3.0 ACCOUNTABILITY AND COMMUNICATIONS 4 3.1 Record Retention Requirements 4 3.2 Public Disclosure and Documentation of the Procurement Process 4 3.3 Maintaining Confidentiality 4 3.4 Fair, Prudent, and Thorough Evaluation 4 4.0 CONTRACTING AUTHORITY 6 4.1 Contract Approval Levels and Signature Authority 6 4.2 Authority and Parameters 6 4.3 Effect of Contract Modifications on Approval and Signature Authority 6 5.0 DETERMINING CONTRACT VALUE/PURCHASE COST 7 5.1 Use Anticipated Cost 7 5.2 Include Total Quantity Needed and Costs 7 5.3 Multi-Phase and Multivendor Projects 7 5.4 No “Bid Splitting” 7 6.0 GRANTS AND FEDERAL FUNDING 9 7.0 TYPES OF PROCUREMENT 10 7.1 Categories 10 7.2 Exclusive Contract Agreements 10 8.0 PROCUREMENT OF PRODUCTS 11 8.1 Purchase of Goods, Supplies, Materials, and Equipment 11 8.2 Procurement of Vehicles and Equipment 12 8.3 Procurement of Electronic Data Processing (Computer) and Telecommunications Equipment, Software, or Services 12 8.4 Procurement of Products at Auction 12 8.5 Procurement of Products from Governmental Agencies 12 City of Edmonds Purchasing Policies October 2024 Table of Contents (con’t) 9.0 PROCUREMENT OF SERVICES 13 9.1 Purchased Services 13 9.2 Personal Services 15 9.3 Architectural, Engineering and Land Surveyor Services (A/E) 16 10.0 PROCUREMENT OF PUBLIC WORKS 18 10.1 Authorized Public Works Contracting Procedures 18 10.2 Generally Applicable Provisions 18 10.3 Contract or Day Labor Without Bids 20 10.4 Small Works Roster 20 10.5 Unit Priced Contracts 21 10.6 Job Order Contracting 23 10.7 Advertised bids 23 10.8 Change Orders on Public Works Construction Contracts 30 10.8 Final Acceptance of Public Works Projects 30 11.0 PROCUREMENT USING FEDERAL FUNDS 31 11.1 Single Audit Act 31 11.2 Closure 31 11.3 Code of Conduct for Federal Purchases 31 11.4 Product Procurement Thresholds 32 11.5 Services Procurement Thresholds 33 11.6 Public Works Procurement Thresholds 35 12.0 GRANT AGREEMENTS 36 13.0 INTERLOCAL AGREEMENTS 37 14.0 REAL PROPERTY 38 15.0 SOLE SOURCE, SPECIAL MARKET CONDITIONS, AND EMERGENCIES 39 15.1 Sole Source 39 15.2 Special Market Conditions 39 15.3 Emergencies 39 16.0 SALE OR DISPOSAL OF CITY PROPERTY 40 16.1 Authorization 40 16.2 Sale / Disposal / Donation 40 16.3 Trade-Ins 40 16.4 Public Notice of Sale 40 16.5 Conflict of Interest 40 16.6 Inventoried Items 40 City of Edmonds Purchasing Policies October 2024 Table of Contents (con’t) 17.0 MISCELLANEOUS 41 17.1 Budget Adjustments 41 17.2 Forms and Templates 41 17.3 Recyclables 41 17.4 Reimbursement of Travel and Meal Expenses 41 17.5 Store-Issued Charge Cards 41 17.6 Purchase Cards 41 17.7 Quick Checks 41 17.8 Early Release 41 17.9 Petty Cash 41 17.10 Finance Committee 41 EXHIBIT 1 – Conflict of Interest Disclosure Form 42 City of Edmonds Purchasing Policies October 2024 1 1.0 OVERVIEW The integrity, efficiency, and effectiveness of the City’s purchasing functions are critical elements of sound government. These Contracting and Purchasing Policies and Procedures (Purchasing Policies) are based on Revised Code of Washington (RCW) minimum standards, Edmonds City Council adopted resolutions and ordinances, rules and guidelines from the State Auditor’s Office (SAO), and recommendations from Municipal Research Services Center (MRSC). They are intended to direct the procurement of goods and services at a reasonable cost and within an open, fair, and documented process, utilizing competitive standards as required by law. 1.1 Purpose The Purchasing Policies explain the responsibilities and establish the rules, procedures, and practices for all employees to follow to procure supplies, materials, equipment, and services. The City of Edmonds will purchase goods and services for the benefit of the public in a manner that results in the best quality for the best value with the most efficient delivery of the same. The Purchasing Policies are intended solely for the benefit of the City. Nothing herein shall be interpreted to create any specially benefited or protected class of persons, or any private cause of action against the City. Adherence to the Purchasing Policies will ensure that public purchases and contracts are open, fair, and at the least cost to the public for value received. To avoid conflicts of interest, procurement will be impartial. Purchases will be made within budget limits and to meet goals and objectives approved in the City’s budget. Potential purchases that are not within budget limits will be pre-approved through a budget amendment process unless emergency procurement procedures apply. 1.2 Objectives The objectives of the City’s purchasing program are: • To provide a uniform system to obtain supplies, materials, equipment, and services in an efficient and timely manner; • To facilitate responsibility and accountability with the use of City resources; • To ensure equal opportunity and competition among suppliers and contractors; • To promote effective relationships and clear communication between the City and its suppliers and contractors; • To comply with the comprehensive State and Federal procurement statutes which govern expenditures of public funds; • To promote the use of recycled materials and products, and dispose of surplus and scrap materials , with regards to cost savings and the environment to the extent financially feasible. 1.3 Scope The Purchasing Policies apply to purchases of and contracting for: • Supplies, materials, and equipment; • Professional services (including architectural and engineering design services); • Purchased services (non-professional services); • Public works projects. The Purchasing Policies do not apply to the acquisition, sale, or lease of real property, except as described in Section 14.0. If grant or debt funding is involved in the proposed purchase, applicable requirements should be obtained from the funding agency. Such requirements may be more restrictive than the Purchasing Policies. City of Edmonds Purchasing Policies October 2024 2 1.4 Controlling Laws Purchases will comply with all relevant Federal, State and City laws, regulations, and policies. If such laws, regulations, or policies – or applicable grant, debt, or other requirements – are more restrictive than the Purchasing Policies, such laws, regulations, policies, and grant, debt, or other requirements should be followed. In the event any bid threshold or other dollar value limits provided in the RCW are different from the values listed within the Purchasing Policies, the RCW limits will control. The City Attorney’s Office will be consulted when questions regarding potential conflicts between laws arise. Applicable laws and regulations will be cited throughout the Purchasing Policies. On a case-by -case basis, the City Council may waive any requirement contained in the Purchasing Policies as long as the result complies with applicable state laws. 1.5 Compliance with Policies A violation of any of the provisions of the Purchasing Policies may result in discipline to the individual involved where, in the opinion of the Mayor (in the case of employees) or the City Council (in the case of an elected official or Mayor), such discipline is in the interest of the public and good governmen t. Officers and employees should be aware of possible personal penalties, termination, and financial liability for intentional or willful violation of competitive bidding laws. RCW 39.30.020 states (emphasis added): In addition to any other remedies or penalties contained in any law, municipal charter, ordinance, resolution, or other enactment, any municipal officer by or through whom or under whose supervision, in whole or in part, any contract is made in willful and intentional violation of any law, municipal charter, ordinance, resolution, or other enactment requiring competitive bidding or procurement procedures for consulting, architectural, engineering, or other services, upon such contract shall be held to a civil penalty of not less than three hundred dollars and may be held liable, jointly and severally with any other such municipal officer, for all consequential damages to the municipal corporation. If, as a result of criminal action, the violation is found to have been intentional, the municipal officer shall immediately forfeit his or her office. For purposes of this section “municipal officer” means an “officer” or “municipal officer” as those terms are defined in RCW 42.23.020(2). City of Edmonds Purchasing Policies October 2024 3 2.0 ETHICS OF PROCUREMENT The City is committed to providing a transparent and equitable process for procurement. Employees participating in a solicitation/award process will be thoughtful of any perceived or actual conflict of interest. Situations defined as prohibited conduct in the Personnel Policies may arise in the procurement context. 2.1 Conflicts of Interest The City maintains the following standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts. No employee or elected official of the City may participate in the selection, award, or administration of a contract supported by a Federal award if they have a real or apparent conflict of interest. Such a conflict of interest would arise when the employee or elected official, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The City will not accept donations of materials or services in return for a commitment to initiate or continue a purchasing agreement. No employee will participate in a procurement when they are aware of a conflict of interest. See also RCW 42.23.030 and Chapter 3.70 ECC. Employees participating in the selection, award, or administration of a contract supported by a Federal award must complete and sign a Conflict of Interest Disclosure Form, attached as Exhibit 1. Reasonable Person Standard. The City seeks to avoid situations that involve conflicts of interest or the appearance of such conflicts based on inappropriate opportunities to influence the solicitation and/or award process. The City uses the measure 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. Questions an employee might ask themselves: Could I comfortably explain my actions? Would taxpayers believe I was acting in their best interest? 2.2 Gifts Employees and elected officials must neither solicit nor accept gifts, gratuities, favors, or anything of monetary value from existing or potential vendors, contractors , or parties to subcontracts in return for a commitment to initiate or continue a purchasing relationship. However, in accordance with Section 10.15 of the City Personnel Policies, this requirement is waived if the benefit received is not substantial or is of nominal value. These standards of conduct provide for disciplinary actions to be applied for violations of such standards. Employees and elected officials should also refuse offered gifts, meals and invitations to events such as concerts or sporting events, that could reasonably be perceived as: improperly influencing performance of his or her 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 awar d process. City employees may neither solicit, accept, nor agree to accept any gratuity for themselves, their families, or others that results in their personal gain which may affect their impartiality in making decisions on the job. Discounts or concessions realistically available to the general population, items received that do not result in personal gain, and samples provided for general City use are examples of items that are not considered to be gratuities. Personal judgment should be used and questions regarding particular circumstances should be referred to the employee’s manager. Contact the City Attorney’s Office for assistance if unusual or unfamiliar circumstances are encountered. 2.3 Former Employees as Vendors/Consultants/Contractors Contact the City Attorney’s Office before initiating a contract with former City employees for assistance in determining if doing so would create an actual conflict of interest or the appearance of a conflict of interest. City of Edmonds Purchasing Policies October 2024 4 3.0 ACCOUNTABILITY AND COMMUNICATIONS City staff involved in procurement and specification development must carefully consider conflicts of interest and other public accountability rules. Consider each of the following: 3.1 Record Retention Requirements The City must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. All quote/bid documents must be retained as indicated in the State of Washington Retention Schedule and be available for public inspection. 3.2 Public Disclosure and Documentation of the Procurement Process The City’s procurement process, including submittals, materials, information, decisions and related written documentation may be public records subject to public disclosure under the Washington Public Records Act (PRA), Chapter 42.56 RCW. 3.2.1 Submittals are subject to disclosure. Certain state law exemptions may apply to documents related to the evaluation and award decision. 3.2.2 Written documentation created by City staff may be subject to disclosure if it pertains to the City’s official business, processes, and decisions. Employees should not include remarks or comments in such materials that they would not be comfortable sharing with a public audience. 3.2.3 Keep those written materials that help to document the process and decisions, and clearly organize them so they can be understood in the future. 3.2.4 Important written materials that are significant to documenting the decision and process should be kept pursuant to state records retention laws. If a records request is made, documentation must be retained even if the retention period for said documentation has lapsed. 3.2.5 The City is not required to create summaries or new public records in response to a PRA request. The City is not required to do research or analysis for vendors under the PRA. However, summaries or analyses are subject to disclosure if the City has already created such records. 3.2.6 Further information regarding public disclosure may be obtained from the Public Records Officer and the City Attorney’s Office. 3.3 Maintaining Confidentiality Documents, decisions, information and opinions are generally to be kept confidential, except as required to be disclosed under the Public Records Act. Do not share information other than with City staff who are directly involved in the evaluation and selection process. Project managers may contact respondents to City solicitations seeking additional information and clarification regarding vendor submittals, as well as to negotiate a contract. However, conversations or contact with respondents regarding details of the evaluation process should otherwise be limited, and care must be taken to maintain the objectivity of the evaluation process. The City shall take reasonable measures to safeguard protected, personally identifiable information and other information the Federal awarding agency or pass -through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, state, local and tribal laws regarding privacy and obligations of confidentiality. 3.4 Fair, Prudent, and Thorough Evaluation Evaluations of bids and proposals must be fair to all respondents and be thoughtful and deliberative in order to preserve the integrity of the public procurement process. 3.4.1 The project manager and City staff invited to assist in specification development, solicitation efforts, and/or award processes must be considerate of conflicts of interest and other public accountability rules. City of Edmonds Purchasing Policies October 2024 5 3.4.2 In the event a member of an RFQ/RFP selection committee has a conflict of interest, they must immediately withdraw from the process. If an employee has a conflict or perceived conflict of interest, they should consult with the City Attorney’s Office. 3.4.3 Employees should use caution: (a) when discussing any aspect of, or any opinion they might have of, the solicitation process, vendors, bids, or results until the award is complete; and (b) to avoid actions that give, or may be perceived to give, preferential treatment to any vendor. City of Edmonds Purchasing Policies October 2024 6 4.0 CONTRACTING AUTHORITY 4.1 Contract Approval Levels and Signature Authority The City’s authority to contract and be contracted with is vested in the City Council.1 The City Council has delegated some of that authority to the Mayor and to Department Directors to procure and execute contracts and amendments at the levels outlined in Sections 8.0, 9.0 and 10.0, below. These approval levels are designed for contracts whose costs are covered by budget appropriations previously approved by the City Council. Contracts requiring additional appropriations must be approved by the Council. 4.2 Authority and Parameters Only authorized employees acting within the scope of their authority may obligate the City in the acquisition of goods and services. A Department Director (or designee), acting within their department budget, is authorized to provide for supplies, materials, equipment, and services purchases within the dollar-value range limits of their contracting authority. Dollar-value ranges indicated pertain to each purchase (including tax, freight, handling and set up costs, if applicable). Purchases may not be broken into multiple purchases to avoid compliance with the Purchasing Policies or state statutes. Procurement of goods or services specifically identified and approved by the City Council during the budget process will not require further Council approval. Employees are prohibited from making purchases for personal use and charging any City vendor account. Any contract that extends beyond the approved budget cycle or which has continuing provisions (indemnities) which impose obligations beyond the budget cycle must receive City Council authorization; provided, that the Mayor (or designees) shall be authorized to execute contracts with indemnity provisions that survive expiration or termination of the contracts if the following conditions are met: (1) City Attorney determines that the indemnity provision is in a standard form that assigns risks in a manner consistent with the costs and purposes of the contract; and (2) the dollar value of the contract is $150,000 or less . 4.3 Effect of Contract Modifications on Approval and Signature Authority If contract cost modifications (i.e., contract amendments, renewals, extensions, change orders), either singly or combined with all previous modifications, pushes the total contract amount over the next authority limit, the contract modification must be approved by that authority. For example, if a Professional Services Agreement is amended to add additional services, which modification increases the contract amount from $85,000 to $151,000, the contract modification will need to be approved by the City Council, which may authorize the Mayor to sign such amendment. In the event contract time only is increased, with no impact to contract cost, City staff are authorized to do so without prior Council approval. In the event the costs approved for an executed contract are reduced by $100,000 or more below the authorized amount, either through one or more amendments to the scope of work or when such reduction is determined to have occurred during contract closeout, the responsible Director must provide notice of such reduction to the City Council. 1 RCW 35A.11.010. City of Edmonds Purchasing Policies October 2024 7 5.0 DETERMINING CONTRACT VALUE / PURCHASE COST 5.1 Use Anticipated Cost The anticipated annual need for a good or services (when it can be reasonably projected) should 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. Contract value refers to the total aggregate value of the contract including all base periods, plus potential renewal periods. • Example #1: A three-year contract for $40,000 per year is considered a $120,000 contract. • Example #2: A contract is originally routed as a one-year $46,000 contract. If an extension is negotiated for an additional year for another $30,000, the aggregate value of the contract becomes $76,000, which will require a higher level of authorization. • Exception: Computer hardware/software maintenance agreements are treated as stand -alone agreements and do not need to be aggregated to the original hardware/software purchase agreement. 5.2 Include Total Quantity Needed and Costs 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. 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. 5.3 Multiphase and Multi-Vendor Projects It is the intent of the City Council to retain oversight of project costs that may reasonably be expected to exceed the Mayor’s contracting authority dollar threshold over the course of the project. If a project (e.g., office remodel) is to be completed in phases and/or by multiple vendors, the total accumulated cost for all phases, goods, and services should be considered when determining which cost threshold applies. The standard for determining what would be considered a “project” for this purpose is what a reasonable person would conclude when considering the goods and/or services procured within the context of such procurement. 5.4 No “Bid Splitting” Requirements for goods and services will not be divided into separate units for the purpose of obtaining a lower total cost in order to avoid contract approval levels or competition requirements. For the procurement of goods, if one item being purchased requires another item to “make a whole,” the total accumulated costs of the two items (when they can be reasonably projected) should be considered together to determine which approval level and cost threshold apply, unless the two items are not available from a single vendor. State law prohibits municipalities from breaking public works projects into separate phases or parts for the purpose of avoiding compliance with bidding statutes.2 For public works projects, all supplies, materials, and equipment purchased separately but as part of a public works project are considered part of the aggregate cost of all phases of a project when determining the applicable bid process to be used. Although state statutes only refer to public works when prohibiting bid splitting, the State Auditor’s Office (SAO) has expressed that neither projects nor purchases should be artificially split so that the cost of each contract is below the bid threshold. The SAO has also indicated that the entity should not disaggregate purchases solely for the purpose of getting the individual purchases below bidding requirements.3 2 RCW 35.23.352(1). 3 See 2024 MRSC City Bidding Book, Washington State at page 17. City of Edmonds Purchasing Policies October 2024 8 The Washington Supreme Court 4 has held that a city may not break a public work into phases for the purpose of estimating the cost of a public works project, even though those phases are performed at different intervals of time. Instead, a city, while completing the actual project in phases, must total the cost of all phases of the public work or purchase. If the aggregate cost exceeds the applicable bid limit, the city must bid each phase of the project even though a single phase may cost less than the bid limit. To avoid bid splitting: • Combine all phases of a public works project when estimating cost. • Combine the total of foreseen identical goods 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). • For items that are designed or intended to be used together (i.e., water meters and covers), and the cost exceeds competition limits, these items should be bid together. The law regarding bid splitting is concerned with the avoidance of competitive bidding requirements. Completing projects in phases is not itself prohibited. Public works and other projects that are clearly delineated, such as those separated by years, are listed in the CIP as different projects, etc., will not be considered one project for the purpose of cost estimates. For example, for phases of an ongoing project, such as a street overlay, each year’s project phase is handled separately because of budget constraints, rather than to avoid bidding requirements. In addition, if a portion of a project concerns professional services, which are not subject to competitive bidding, that portion would not be included in the cost estimate for the public works project. Provided that the separation of a project into phases is not being done to avoid competitive bidding requirements, such separation would not be in violation of state law. 4 National Electrical Contractors Assoc. v. City of Bellevue, 1 Wn.App. 81 (1969). City of Edmonds Purchasing Policies October 2024 9 6.0 GRANTS AND FEDERAL FUNDING If procurement involves any type of grant or federal funding, consult the appropriate section of the Purchasing Policies before moving forward. These types of purchases often have their own procurement requirements. All grants are different and one size does not fit all. Some grants simply require the City to use its own procurement rules, while others require insertion of their contracting clauses into City contracts. Section 11.0 provides detailed information on the requirements for City procurement when using federal funds. Contact the City Attorney’s Office as needed for advice on how to proceed. City of Edmonds Purchasing Policies October 2024 10 7.0 TYPES OF PROCUREMENT 7.1 Categories Local government procurement generally falls into the following categories: 7.1.1 Products: Purchases of goods, supplies, materials, equipment, vehicles, and data processing and telecommunications equipment or software that are not connected with a public works project. 7.1.2 Services: • Purchased Services – Services provided by vendors for the routine, necessary, and continuing functions of a local agency, mostly related to physical work. Examples include janitorial, security, delivery, and courier services; herbicide application; recycling and garbage services; data entry; computer hardware and software maintenance; and vehicle inspection, lubrication, and repair. • Professional Services – Includes services considered to be Personal Services and A/E Services: o Personal Services – Services provided by a consultant to accomplish a specific study, project, task, or other work statement, not including professional A/E services. Examples include accounting and financial advising; real estate services; economic analysis and consultation; comprehensive plan consultation not involving A/E services; legal services; utility rate studies; public relations and marketing; and meeting facilitation and training. o Architectural, engineering, and land surveyor services (A/E) – Services provided by consultants for architecture, engineering, land surveying, and landscape architecture services. 7.1.3 Public Works: All work, construction, alteration, repairs, or improvements to physical property, other than ordinary maintenance, that are paid for by a municipality. 7.2 Exclusive Contract Agreements The City may enter into an exclusive contract with a vendor in order to ensure the lowest prices on goods and/or services that are unrelated to A/E services or public works projects requiring competitive bidding. All departments must use the exclusive vendor unless special circumstances occur. For example, in case of emergency or if the vendor does not carry the exact product needed. Exclusive contracts should not be confused with Sole Source procurement (see Section 15.0). City of Edmonds Purchasing Policies October 2024 11 8.0 PROCUREMENT OF PRODUCTS 8.1 Purchase of Goods, Supplies, Materials, and Equipment 8.1.1 Summary Estimated Cost Approval/Signing Authority Procurement Process Notes $0 – $19,999 Department Director or designee Direct negotiations Obtain a detailed invoice $20,000 – $35,000 Department Director or designee Obtain at least three (3) telephonic or electronic quotes from vendors, unless only two possible vendors can be found, and complete a vendor quote form Obtain a detailed invoice; quotes not required if sole source procedures apply (only one vendor can be found) $35,001 – $75,000 Department Director or designee Obtain at least three (3) written quotes from vendors, unless only two possible vendors can be found Obtain a detailed invoice; quotes not required if sole source procedures apply $75,001 – $150,000 Department Director and Mayor or designees Obtain at least three (3) written quotes from vendors, unless only two possible vendors can be found Obtain a detailed invoice; quotes not required if sole source procedures apply Over $150,000 City Council Competitive bidding is required, unless sole source procedures apply City Council must authorize the call for bids and award the contract 8.1.2 Procedures 8.1.2.1 Purchasing decisions for the purchase of goods, supplies, materials, and equipment that are not connected with a public works project must be approved by a Department Director (or designee), a Department Director and the Mayor (or designees) or the City Council as noted above for each cost range. 8.1.2.2 Purchases costing less than $20,000 do not require quotes; however, the price must be considered fair and reasonable and, to the extent practicable, purchases should be distributed equitably among suppliers. Detailed invoices and documentation of purchasing decisions will be kept in department files. 8.1.2.3 Purchases costing $20,000 to $35,000 require at least three (3) telephone or electronic quotes from vendors (unless available only from one vendor, then use sole source procedures), and completion of the vendor quote form. The number of vendors contacted may be reduced if the item sought is only available from a smaller number of vendors. When fewer than three quotes are requested, or if there are fewer than three replies, a written explanation will be maintained in department files, along with detailed invoices. 8.1.2.4 Purchases costing more than $35,000 up to $75,000 require written quotations from, if possible, at least three (3) vendors (unless the items are from a sole source vendor or if only two possible vendors can be found). The written quotes and detailed invoices will be kept in department files. 8.1.2.5 Purchases costing more than $75,000 up to $150,000 require written quotations from, if possible, at least three (3) vendors (unless the items are from a sole source vendor or if only two possible vendors can be found). The written quotes and detailed invoices will be kept in department files. 8.1.2.6 Purchases costing more than $150,000 must be bid competitively (unless the items are from a sole source vendor). See Bidding Requirements below. If the purchase is not part of a project listed in the most current City Council approved budget or CIP, the City Council must authorize the call for bids for a purchase estimated more than $150,000, as well as award the contract. City of Edmonds Purchasing Policies October 2024 12 8.1.2.7 Refer to the guidelines on sole source or emergency procedures, as needed. 8.1.2.8 Refer to the federal procurement guidelines if any federal funds will be used for the procurement of products. When soliciting quotes, the City will not inform a vendor of other vendors’ quotes. A written record will be made by the City representative of each vendor’s quote on the goods, equipment, supplies, or materials, and of any conditions imposed on the quote by such vendor. It is allowable to use criteria other than cost (e.g., qualifications, available staff, delivery timelines, return policies) in making an award to determine whether the vendor is a “responsible” bidder. All quotes/bids must be awarded to the lowest responsible bidder. Whenever there is a reason to believe that the lowest acceptable quote is not the best price attainable, all quotes may be rejected and the City may obtain new quotes. 8.2 Procurement of Vehicles and Equipment 8.2.1 The Mayor (or designee) is authorized to approve the purchase of new vehicles and equipment with a value of less than $250,000 per purchase, provided funds specific to the equipment or vehicle have been budgeted by the City Council. 8.2.2 The City may purchase vehicles and equipment from a cooperative if the City enters into an Interlocal Agreement with the cooperative, and the cooperative has followed all necessary and proper bidding requirements (see Interlocal Agreements at Section 13.0). 8.3 Procurement of Electronic Data Processing (Computer) and Telecommunications Equipment, Software, or Services Recognizing the unique aspects of computer and telecommunications systems, the Washington State legislature established an alternative process for making such purchases that is both competitive and compatible with the needs of municipalities. RCW 39.04.270 allows purchases through use of an alternative competitive negotiation process requiring, at a minimum, the following steps: • A request for proposals (RFP) must be prepared and submitted to an adequate number of qualified sources as determined by the City at its discretion to permit reasonable competition consistent with the requirements of the procurement. • Notice of the 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. • The RFP must identify significant evaluation factors, including price, and their relative importance. • The City must provide reasonable procedures for technical evaluation of the proposals received, identification of qualified sources, and selection for awarding the contract. • The award must be made to the qualified bidder whose proposal is “most advantageous” to the City with price and other factors considered. • The City may reject all proposals for good cause and request new proposals. 8.4 Procurement of Products at Auction RCW 39.30.045 allows for the purchase of any supplies or equipment at auction rather than through competitive bidding, if the items can be obtained at a competitive price. This authority allows the City to make a purchase on an internet-based auction service, such as eBay, as well as through in-person auctions. The City may also use federal, state, or local governmental auctions. 8.5 Procurement of Products from Governmental Agencies RCW 39.33.010 allows for the purchase of surplus property from other governmental agencies without regard to bid laws. The City may acquire such property from another governmental entity on mutually agreeable terms without soliciting bids/quotations. City of Edmonds Purchasing Policies October 2024 13 9.0 PROCUREMENT OF SERVICES The first step in successfully contracting for services is to determine the category of service that the City will be contracting for, as there are distinct differences between service types and the manner of solicitation. Distinguishing between services and public works is also important, as services may have different bidding requirements. MRSC uses the terms “purchased services”; “personal services”; and “architecture and engineering services” in its contracting guidelines. Each type is detailed below. Each Department Director (or designee) is authorized to determine the needs of their department in the procurement of services within their budget. Two or more departments may contract with a services vendor or consultant simultaneously, provided that each department meets the procurement obligations set forth in the Purchasing Policies. When soliciting information from potential service providers, the City may solicit a Request for Qualifications (RFQ) as an initial informational submission or together with a Request for Proposals (RFP) in connection with a formal solicitation for services. An RFQ asks an individual or company to submit their general capabilities, list of principal employees, previous projects, and other qualifications to perform a type of service. An RFP asks an individual or company to submit both their qualifications and a proposed scope of services for a specific project, including information on the fee, schedule and deliverables. An RFP should include: • Detailed scope of work describing the project tasks • Estimated budget • Estimated schedule • Evaluation criteria • Instructions regarding submittal information (page limitations, number of copies to be submitted) • Proposal deadline • Copy of agreement for services A Department Director (or designee) may evaluate proposals for smaller projects (less than $100,000), but a review panel of at least three (3) employees is recommended for more complex projects. City staff should review all submittals that were timely received (prior to the proposal deadline) to ensure they comply with the requirements of the RFP. The Director or review panel should then use the evaluation criteria to evaluate each proposal. Once a service provider is selected, City staff may negotiate directly with the service provider on the applicable terms and enter into a Professional Services Agreement for the services. 9.1 Purchased Services Purchased Services refers to services provided by a vendor to accomplish routine, continuing and necessary functions, mostly related to physical activities that: • Follow established or standardized procedures; • Contribute to the day-to-day business operations; • Require completion of assigned and specific tasks; • Require only routine or perfunctory decisions; and • May require payment of prevailing wages. These services are usually repetitive, routine, or mechanical in nature. Purchased Services include but are not limited to delivery and courier services; janitorial services; grounds keeping; pest control; moving services; fire extinguisher inspection; vehicle inspection and repair services; elevator or equipment inspection (but not repair); office furnishings installation and repair services; vehicle towing; services for equipment maintenance and repair (unless considered a public work); operation of a physical plant; security; computer hardware and software maintenance; data entry; key punch services; and computer time-sharing, contract programming, and analysis. City of Edmonds Purchasing Policies October 2024 14 For most purchased services, the main determinant of award is price and there are no bid limits or requirements for advertising, bonds and/or retainage, or depending on the specific facts, prevailing wages. Contractors whose work includes only observing, directing, verifying, and reporting would not have a prevailing wage requirement . There are a number of purchased services, however, that fall into the gray area between purchased services and public works contracting. Purchased service contracts require, on the whole, much less paperwork than public works contracts. If a particular contract falls in the gray area, the conservative approach is to consider it a public works contract. The Washington State Department of Labor & Industries (L&I) considers some service contracts, such as HVAC system maintenance or road striping, to be public works and subject to public works bidding requirements. 9.1.1 Summary Estimated Cost Approval/Signing Authority Procurement Process Notes $0 – $75,000 Department Director or designee must approve and, provided funds have been budgeted, is authorized to sign the contract Invitation to Bid when price will be primary basis of award RFP if price plus additional qualifications, such as expertise, experience, and schedule will be considered Requires completion of a purchased services contract that describes services to be performed and purchase price $75,001 – $150,000 Department Director and Mayor or designees must approve and, provided funds have been budgeted, the Mayor is authorized to sign the contract Invitation to Bid when price will be primary basis of award RFP if price plus additional qualifications, such as expertise, experience, and schedule will be considered Requires completion of a purchased services contract that describes services to be performed and purchase price Over $150,000 City Council to approve contract and authorize Mayor’s signature RFP and competitive evaluation process to ensure vendor has the necessary expertise If not part of a project listed in budget or CIP, a summary of the RFP must be approved by Council prior to advertisement 9.1.2 Procedures Procurement of purchased services requires completion of a City purchased services agreement that describes services to be performed and purchase price and adherence to the following procedures: 9.1.2.1 The Department Director (or designee) must approve procurement of purchased services costing up to $75,000, and provided funds have been budgeted, is authorized to sign the contract. 9.1.2.2 The Department Director and the Mayor (or their designees) must approve procurement of purchased services costing more than $75,000 up to $150,000. The Mayor is authorized to sign the contract provided funds have been budgeted. 9.1.2.3 Procurement of purchased services with an estimated fee of over $150,000 requires a focused public solicitation (formal bid / RFP process) to ensure the vendor has the necessary expertise. If the services are not part of a project listed in the most current City Council approved budget or CIP, a summary of the public solicitation must be put on the City Council agenda for approval prior to advertisement. The City Council must approve purchased services contracts costing more than $150,000 and authorize the Mayor to sign the contract. 9.1.2.4 Refer to the guidelines on sole source or emergency procedures, as needed. 9.1.2.5 Refer to the federal procurement guidelines if any federal funds will be used for the procurement of services. City of Edmonds Purchasing Policies October 2024 15 9.2 Personal Services Personal Services are provided by independent consultants with specialized knowledge, advanced education, professional licensing or certification, and where the primary service provided is mental or intellectual, involving the consistent exercise of judgment and discretion. Personal services involve professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement. The term encompasses disciplines not specifically related to A/E, including but not limited to attorneys and bond counsel, computer programmers, financial analysts, artists, strategic planners, real estate appraisers and other consultants, and professional trainers. 9.2.1 Summary Estimated Cost Approval/Signing Authority Procurement Process Notes $0 – $75,000 Department Director or designee must approve and, provided funds have been budgeted, is authorized to sign the contract Direct negotiations; Expertise, experience, including prior experience with the city, timeframe for completing projects, and the value of a negotiated agreement are to be considered when choosing a consultant/firm Requires completion of a professional services agreement that describes services to be performed and total cost $75,001 – $150,000 Department Director and Mayor or designees must approve and, provided funds have been budgeted, the Mayor is authorized to sign the contract Direct negotiations; Expertise, experience, including prior experience with the city, timeframe for completing projects, and the value of a negotiated agreement are to be considered when choosing a consultant/firm Requires completion of a professional services agreement that describes services to be performed and total cost Over $150,000 City Council to approve contract and authorize Mayor’s signature Requires focused public solicitation (Request for Proposals / RFP) to ensure consultant has the necessary expertise, unless prior relationship with City established If not part of a project listed in budget or CIP, a summary of the RFP must be approved by Council prior to advertisement 9.2.2 Procedures 9.2.2.1 Services anticipated to cost up to $150,000 may be procured through direct negotiations with consultants. Services anticipated to cost more than $150,000 must be procured through a formal bid / RFP process. 9.2.2.2 If negotiating directly, send a written solicitation to one or more qualified firms or individuals describing the needed services. The MRSC Consultant Roster can be used if desired. Request prices, schedules, and qualifications. 9.2.2.3 Expertise, experience, including prior experience with the City, timeframe for completing projects, and the value of a negotiated agreement will be considered when choosing a consultant to perform personal services. 9.2.2.4 Procurement of personal services requires completion of a City professional services agreement that describes services to be performed and purchase price. 9.2.2.5 The Department Director (or designee) must approve procurement of personal services costing up to $75,000, and provided funds have been budgeted, is authorized to sign the contract. 9.2.2.6 The Department Director and the Mayor (or their designees) must approve procurement of personal services costing more than $75,000 up to $150,000. The Mayor is authorized to sign the contract provided funds have been budgeted. City of Edmonds Purchasing Policies October 2024 16 9.2.2.7 Procurement of personal services with an estimated fee of over $150,000 requires a focused public solicitation (formal proposal / RFP process) to ensure the consultant has the necessary expertise; provided, that in the event that the City has established an ongoing relationship with a consultant and has a basis to determine from experience that the consultant has the necessary expertise, the formal proposal / RFP process need not be undertaken. If the work is not part of a project listed in the most current City Council approved budget or CIP, a summary of the public solicitation must be approved by the City Council prior to advertisement. The City Council must approve personal services contracts costing more than $150,000 and authorize the Mayor to sign the contract. 9.2.2.8 When one project requires contracts with multiple consultants, the purchasing limits apply to the estimated fees for each contract, rather than the cumulative total of all consultants working on the project. 9.2.2.9 Refer to the guidelines on sole source or emergency procedures, as needed. 9.2.2.10 Refer to the federal procurement guidelines if any federal funds will be used for the procurement of services. 9.3 Architectural, Engineering and Land Surveyor Services (A/E) Procurement of A/E services will be in accordance with Chapter 39.80 RCW if no federal funds will be used for the procurement of these services . The statute requires advance notice of the need for professional services (RCW 39.80.030), evaluation of firms’ qualifications and performance (RCW 39.80.040), and negotiation with firms in accordance with adjudged qualifications (RCW 39.80.050). If A/E services will be procured using any federal funds, procurement will be in accordance with the more restrictive requirements of 2 CFR 200, and the federal procurement guidelines must be followed (see Section 11.0). A/E purchases will be coordinated through the Department Director to ensure compliance with all applicable Federal and State statutes. Professional architecture and engineering (A/E) services are services provided by any person, other than an employee of the City, that fall under the general statutory definitions of: • Architecture – Chapter 18.08 RCW • Engineering – Chapter 18.43 RCW • Land surveying – Chapter 18.43 RCW • Landscape architecture – Chapter 18.96 RCW 9.3.1 Summary Estimated Cost Approval/Signing Authority Procurement Process Notes $0 – $75,000 Department Director or designee must approve advertising of Requests for Qualifications (RFQs) and procurement of services and, provided funds have been budgeted, is authorized to sign the contract Procurement is made through the MRSC A/E Consultant Roster according to the requirements of Chapter 39.80 RCW Requires completion of a professional services contract that describes services to be performed and purchase price $75,001 – $150,000 Department Director and Mayor or designees must approve advertising of RFQs and procurement of services and, provided funds have been budgeted, the Mayor is authorized to sign the contract Procurement is made through the MRSC A/E Consultant Roster according to the requirements of Chapter 39.80 RCW Requires completion of a professional services contract that describes services to be performed and purchase price Over $150,000 City Council to approve contract and authorize Mayor’s signature Requires focused public solicitation (RFQ) to ensure consultant has the necessary expertise, unless prior relationship with City established If not part of a project listed in budget or CIP, a summary of the RFQ and project details must be approved by Council prior to advertisement City of Edmonds Purchasing Policies October 2024 17 9.3.2 Procedures 9.3.2.1 A/E consultants are initially selected based on their qualifications, rather than price. The defining characteristic of Chapter 39.80 RCW is its strict insistence on qualification-based selection (QBS) of A/E professionals. In contrast to other contracts, an agency cannot consider price in the selection process for A/E services. It must instead select the most qualified firm, and then negotiate a price for the contemplated work. 9.3.2.2 There are two ways to select an A/E firm based on their qualifications: • MRSC Roster: This process requires the City representative to develop a summary of A/E services to be provided and the criteria used to select the consultant. Selection can be made after reviewing qualifications of Consultants on the MRSC Consultant roster, following the procedures of 39.80 RCW. • RFQ Process: If the project manager does not choose to use the appropriate roster, then a formal Request for Qualifications (RFQ) process must be followed, following the procedures of 39.80 RCW. 9.3.2.3 After the identification of the most qualified A/E consultant, the City will negotiate a contract for a price that the City determines to be fair and reasonable. In making this 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 work. If the City is unable to negotiate a satisfactory contract with the consultant at a price the City determines to be fair and reasonable, negotiations will be terminated and the City will begin negotiations with the next highest qualified consultant. 9.3.2.4 Department Directors (or designees) are designated the authority to approve advertising Requests for Qualifications (RFQ) for A/E services when the estimated consultant contract fee up to $75,000, and to approve proceeding with procurement of A/E services using the A/E Consultant Roster, provided funds have been budgeted by the City Council. 9.3.2.5 Department Directors and the Mayor (or their designees) must approve consultant contracts when the estimated consultant contract fee of more than $75,000 up to $150,000 and, provided funds have been budgeted, the Mayor is authorized to sign the contract. 9.3.2.6 Per Resolution 1155 the City utilizes the A/E Consultant Roster maintained by MRSC. Selection of an A/E consultant from the MRSC Consultant Roster may be made if the estimated consultant fee is $150,000 or less. 9.3.2.7 All projects with an estimated A/E consultant fee over $150,000, and projects that are sufficiently complex/unique will require a focused public solicitation advertised as a Request for Qualifications (RFQ) to ensure the A/E consultant has the necessary expertise; provided, that in the event that the City has established an ongoing relationship with a consultant and has a basis to determine from experience that the consultant has the necessary expertise, the formal bid / RFP process need not be undertaken. If the project is not listed in the City’s current City Council Approved budget or CIP, a summary of the RFQ and project details must be put on the City Council agenda for approval prior to advertising the RFQ. The City Council must approve A/E Professional Service contract s costing more than $150,000 and authorize the Mayor to sign the contract. 9.3.2.8 A selection panel, with a minimum of three (3) employees, shall be used to select an A/E consultant when the estimated consultant fee exceeds $1 50,000. A selection panel is optional when the A/E consultant fee is estimated to be $150,000 or less. 9.3.2.9 Purchase of A/E services require completion of a City professional service agreement that describes services to be performed and consultant fee. City of Edmonds Purchasing Policies October 2024 18 10. PROCUREMENT OF PUBLIC WORKS As defined in RCW 39.04.010, “public works” include 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. This includes most work done on City owned structures and facilities. WAC 296-127- 010(7)(b)(ii) defines “ordinary maintenance” as “maintenance work performed by the regular employees of” the City. This means that every time the City calls in a carpenter, plumber, electrician, painter, roofer, elevator repair technician, tree trimmer, fencing company, HVAC repair technician, or equipment operator, the purchase falls under public works procurement rules. In other words, if the City contracts out for maintenance or repairs, the work is a public work for bidding and prevailing wage purposes. 10.1 Authorized Public Works Contracting Procedures Washington State law authorizes cities to enter into public works contracts according to certain limited and defined procedures (see RCW 35A.40.200), each of which is detailed below: • Contract or day labor (City employees) without calling for bids – RCW 35.23.352(1). • Small Works Roster – RCW 35.23.352(4) and RCW 39.04.151-.154. • Unit Priced Contracts – RCW 35.23.352(13). • Job Order Contracting – RCW 39.10.420. • Advertised Bids – RCW 35.23.352(1). Category Cost Approval/Signing Authority Notes Contract or Day Labor Without Bids $0 – $75,500 (single craft) $0 – $150,000 (multiple craft) Department Director or designee may approve use of day labor or contract and may sign contracts within budget Work performed by City employees or by contract negotiated directly by Department Director or designee Small Works Roster $0 – $350,000 Dependent upon cost of contract and budget authority Contract to be awarded to lowest responsible bidder Unit Priced Contracts Applicable cost for initial term not to exceed three years, plus possible one year extension Dependent upon cost of contract and budget authority Contract to be awarded to lowest responsible bidder Job Order Contracting $500,000 maximum per work order Department Director or designee is authorized to sign contracts within budget Procurement pursuant to RCW 39.10.420 Formal Advertised Bidding Over $350,000 City Council to approve contract and authorize Mayor’s signature If not part of a project listed in budget or CIP, the Council must approve advertising of call for bids 10.2 Generally Applicable Provisions 10.2.1 Prevailing Wages. Public works projects are governed by prevailing wage requirements, regardless of contract amount. 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 fi nal acceptance of the work. 10.2.2 Bid Bond Required. Pursuant to RCW 35.23.352 and RCW 35A.40.200, each bid must be accompanied by a bid proposal deposit in the amount of no less than five percent (5%) of the amount of the bid. Acceptable forms of deposit are surety bond provided by a surety company authorized to do business in Washington state, cashier’s check, or postal money order. NOTE: The City may waive the bid proposal deposit on bids obtained using the Small Works Roster procedure. City of Edmonds Purchasing Policies October 2024 19 10.2.3 Performance and Payment Bonds Required. RCW 39.08.010 mandates that the City require payment and performance bonds for every public works contract, except as described below. This ensures that the job will be completed and that all workers, vendors, and subcontractors will be paid. Therefore , the City requires a good and sufficient bond in an amount equal to one hundred percent (100%) of the price specified in the contract, with a surety company authorized to do business in Washington State as surety, conditioned that the winning bidder shall comply with all the statutory requirements of Chapter 39.08 RCW, including the faithful performance of all provision of the contract; the payment of all laborers, materialpersons, mechanics, and subcontractors; and the payment of all taxes, increases, and penalties incurred on the project. For public works contracts of One Hundred Fifty Thousand Dollars ($150,000) or less, the City may, at the option of the contractor, in lieu of the bond, retain ten percent (10%) of the contract amount for thirty (30) days after final acceptance, or until receipt of all necessary releases from the Department of Revenue, Department of Labor & Industries, and Employment Security Department, and settlement of any liens filed under Chapter 60.28 RCW, whichever is later. RCW 39.08.010(3). The intent of this exception is to assist small contractors who may have difficulty securing bonds. RCW 39.08.015 subjects the City to the claims of laborers, material persons, mechanics, and subcontractors if the required performance and payment bonds are not obtained. 10.2.4 Retainage Required. The City contracts must provide, and the City must reserve, retainage not to exceed five percent (5%) of the contract amount per RCW 60.28.011. The retainage is a trust fund for the protection of workers and the payment of taxes and penalties. Exception: the City may waive the retainage requirements of RCW 60.28.011, thereby assuming liability for contractor’s nonpayment of labor, taxes and penalties, for projects awarded under the small works roster process. NOTE: RCW 60.28.011 prohibits agencies from withholding retainage on public works projects funded in whole or in part by federal transportation funds. Instead, agencies must rely on the contractor’s bond. 10.2.5 Non-Collusion Affidavit Required . Each bidder is 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’s Office. 10.2.6 Determining Lowest Responsible Bidder. The City must either reject all bids or award the contract to the lowest responsible bidder, meaning the bidder who is a registered and/or licensed contractor; who meets the bidder responsibility criteria of RCW 39.04.350 and any supplementary criteria pre-established by the City; and who submitted the lowest responsive bid; provided, that if the City issues a written finding that the lowest bidder has delivered a project to the City within the last three (3) years that was late, over budget, or did not meet specifications, and the City does not find in writing that such bidder has shown how they would improve performance to be likely to meet project specifications, then the City may choose the second lowest bidder whose bid is within five percent (5%) of the lowest bid and meets the same criteria as the lowest bidder. (RCW 35.23.352(2)). If the City awards a project to the second lowest bidder under this section, the City must make an annual report to the department of commerce that includes the total number of bids awarded to certified minority or women contractors and describing how notice was provided to potential certified minority or women contractors. RCW 35.23.352(14). If all bids are rejected, the City may call for new bids. 10.2.7 Award. For contracts up to $150,000, the Mayor (or designee) shall have the authority to award and execute public works contracts that are within the applicable budget. For contracts over $150,000, the City Council must approve the award of a public works contract and authorize the Mayor’s signature thereon. 10.2.8 Federal Funding. If a 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 Section 200.88 and 48 CFR Section 2.101 (“Simplified acquisi tion threshold”) and is subject to periodic adjustment for inflation pursuant to 41 U.S.C. Section 1908. See the Federal Procurement Requirements at Section 11.0 if the public works project is funded, even in part, by federal funds. City of Edmonds Purchasing Policies October 2024 20 10.3 Contract or Day Labor Without Bids The City may construct any public work by contract or day labor (City employees) without calling for bids whenever the estimated cost of the work or improvement, including the cost of materials, supplies, and equipment, will not exceed $150,000 if more than one craft or trade is involved, or $75,500 if a single craft or trade is involved5 or the project is street signalization or street lighting. The City may not divide the project into units of work or classes of work for the purpose of qualifying for j ob order contracting. The City may, without a contract, have employees perform work which is an accepted industry practice under prudent utility management (meaning utilizing material of a worth not exceeding $300,000, not including equipment as it is defined in RCW 35.23.352(1)). Note that contracting authority dollar limits apply to all City contracts. Work performed within the City by other public employees under an interlocal agreement will be included in the above limits. The City is required to provide a report to the State Auditor’s Office (SAO) of the costs of all public works in excess of $5,000 that are not procured by contract (RCW 35A.40.200 and RCW 35.23.352(5)). For any project using City employees in excess of $25,000, the City must publish a description of the project and its estimated cost in the official newspaper at least fifteen (15) days before beginning the work, unless the work is done under a declared emergency , in which case the publication of the description and estimate may be made within seven (7) days after the commencement of the work. (RCW 39.04.020). 10.4 Small Works Roster Resolution 1155, passed November 5, 2007 established a small works roster process to award public works contracts. The City’s Small Works Roster process will follow the provisions of RCW 39.04.151 through .154. Department Directors, the Mayor, or their designees, are authorized to proceed with procurement from the Small Works Roster within their contracting authority, provided funds have been budgeted by Council. For any public works project estimated to cost $350,000 or less 6, the City may use the Small Works Roster procedure. The City of Edmonds has entered into an agreement with MRSC, under which they will maintain the City’s Small Works Roster. Use of the Small Works Roster allows the City to preclude the advertisement requirements and sealed bidding procedures of the formal competitive process. All other bidding procedures and requirements not in conflict remain the same. For all purposes under this section, contractors are considered to be “on the appropriate small works roster” if they are on such roster before the time that the bid solicitation closes. The following small works roster procedures are established for use by the City pursuant to RCW 39.04.15 2: 10.4.1 Cost. The City need not comply with formal sealed bidding procedures for the construction, building, renovation, remodeling, alteration, repair, or improvement of real property where the estimated cost does not exceed Three Hundred Fifty Thousand Dollars ($350,000.00), which includes the costs of labor, material, equipment and sales and/or use taxes as applicable. Instead, the City may use the Small Works Roster procedures for public works projects as set forth herein. The breaking of any project into units or accomplishing any projects by phases is prohibited if it is done for the purpose of avoiding the maximum dollar amount of a contract that may be let using the Small Works Roster process. 10.4.2 Publication. At least once a year, on behalf of the City, MRSC will publish in a newspaper of general circulation within the jurisdiction, and provide the office of minority and women’s business enterprises’ directory of certified firms, a notice of the existence of the roster and solicit the names of contractors for the roster. Responsible contractors will be added to appropriate MRSC roster at any time that they submit a written request and necessary records. 10.4.3 Documentation. The City will document its good faith efforts to comply with RCW 39.04.152 as follows: (a) After an award is made, the bid quotations obtained will be recorded, publicly available, and available by request; and (b) Annually, the City will publish a list of small works contracts awarded and contractors contacted for direct negotiation pursuant to RCW 39.04.200. 5 These thresholds are set by state law (RCW 35.32.352) and are subject to adjustment. The threshold in effect at the time of bid sol icitation will apply. 6 This threshold is set by state law (RCW 39.04.152) and is subject to adjustment. The threshold in effect at the time of bid solicitation will apply. City of Edmonds Purchasing Policies October 2024 21 10.4.4 Invitation for Quotations. The City may contract for Small Works projects by inviting and securing written or electronic quotations from contractors on the appropriate Small Works Roster to assure that a competitive price is established and to award contracts to the responsible bidder with the lowest responsive bid. Contractors must meet the mandatory bidder responsibility criteria in RCW 39.04.350(1) and any pre - established supplementary bidder criteria under RCW 39.04.350(3). A contract awarded from a Small Works Roster need not be advertised. Invitations for quotations must include, at a minimum, an estimate for the scope of work, including the nature of the work to be performed as well as materials and equipment to be furnished. Detailed plans and specifications need not be included. Templates for bid invitations, bidding, and contracting made available by the Department of Enterprise Services or MRSC may be used. Quotations will be invited from all appropriate contractors on the appropriate Small Works Roster that have indicated interest in performing work in the applicable geographic area. 10.4.5 Direct Contracting with Small, Minority, Women and Veteran-Owned Businesses. Pursuant to RCW 39.04.152(4)(b), f or small public works projects with an estimated cost of less than $150,000, not including sales tax, to increase the utilization of small, minority, women, and veteran-owned businesses, direct contracting with small businesses as defined in RCW 39.04.010, before direct contracting with other contractors on the appropriate Small Works Roster, without a competitive process, is hereby authoriz ed as follows: 10.4.5.1 If there are six (6) or more contractors meeting the definition of small business on the applicable roster, the City must direct contract with one of those small businesses on the applicable roster that have indicated interest in performing work in the applicable geographical area. The City must rotate through the contractors on the appropriate small works roster and must, when qualified contractors are available from the roster who may perform the work or deliver the services within the budget described in the invitation for quotations, utilize different contractors on different projects. 10.4.5.2 If there are five (5) or fewer contractors meeting the definition of small business on the applicable roster, the City may direct contract with any contractor on the applicable roster. 10.4.5.3 The City must notify small, minority, women, or veteran-owned businesses on the applicable roster when direct contracting is utilized. 10.4.5.4 In engaging in direct contracting, the City may not favor certain contractors on the appropriate small works roster by repeatedly awarding contracts without documented attempts to direct contract with other contractors on the appropriate small works roster. 10.4.6 Small Public Works under $5,000. For small public works contracts under $5,000, there is no requirement for retainage or performance bonds. Otherwise, Small Works contracts are subject to the performance bond requirements of Chapter 39.08 RCW and the retainage requirements of Chapter 60.28 RCW; provided, however, that the City may reduce or waive retainage requirements set forth in RCW 60.28.011(1)(a), thereby assuming the liability for the contractor's nonpayment of: (a) laborers, mechanics, subcontractors, materialpersons, and suppliers; and (b) taxes, increases, and penalties pursuant to Titles 50, 51, and 82 RCW that may be due from the contractor for the project. Any such waiver will not affect the rights of the City recover against the contractor for any payments made on the contractor's behalf. For small public works contracts awarded through an invitation for quotation, notice of any retainage reduction or waiver must be provided in the invitation. 10.5 Unit Priced Contracts 10.5.1 General. RCW 35.23.352(13) allows the City to procure public works services with unit priced contracts. A unit priced public works contract, sometimes called an “on -call” public works contract, is a competitively bid contract in which public works are anticipated on a recurring basis to meet the business or operational needs of the City, under which a contractor agrees to a fixed period indefinite quantity delivery of work, at a defined unit price for each category of work. Unit priced contracts must be executed for an initial contract term not to exceed three (3) years, with the City having the option to extend or renew for one (1) additional year. City of Edmonds Purchasing Policies October 2024 22 While traditional public works contracts are awarded for specific projects/scopes with a specific total dollar value, unit priced contracts are not associated with a particular project, do not guarantee any amount of work, and do not establish a total dollar value (although the contract will cap the dollar value at a certain level over the life of the contract). Instead, the City agrees to pay a defined hourly rate or unit price for certain types of anticipated, but unplanned, work or trades over a certain time period. The prices for different tasks may be based upon different units. Commonly used units include: • Weight, such as tons • Surface area, such as square feet or acres • Volume, such as gallons or cubic yards • Length/depth, such as linear feet or vertical linear feet • Time, such as hours • Quantity of items • Lump sum per task. When a specific project is identified, individual work orders are authorized based upon either a “not to exceed” time and materials basis, or a negotiated lump sum amount using the previously established unit prices. During the course of a contract, there may be occasions when the original unit prices do not address particular work items that are needed. In those situations, new line items may be added by contract addendum. Unit priced contracts must be awarded to the lowest responsible bidder. Whenever possible, the City must invite at least one proposal from a certified minority or woman contractor who otherwise qualifies. Unit price contractors shall pay prevailing wages for all work that would otherwise be subject to the requirements of chapter 39.12 RCW. Prevailing wages for all work performed pursuant to each work order must be the prevailing wage rates in effect at the beginning date for each contract year. Unit priced contracts must have prevailing wage rates updated annually. Intents and affidavits for prevailing wages paid must be submitted annually for all work completed within the previous 12-month period of the unit priced contract. 10.5.2 Bidding a Unit Priced Contract. The City may use the formal bid or Small Works Roster procedures applicable to the estimated total aggregate “not to exceed” value of the contract. The invitation to bid must: • Include, for purposes of the bid evaluation, estimated quantities of the anticipated types of work or trades. • Specify that the contract will expire when the work orders total the estimated total aggregate “not to exceed” value, including Washington state sales tax, or the contract term expiration date, whichever occurs first. • Specify how work orders will be issued and include a sample work order. • State that there is no minimum volume of work guaranteed. • Specify that prevailing wage rates in effect at the beginning date of the contract year must be applied. • Specify that prevailing wage rates must be updated and Intents and Affidavits submitted to L&I annually (per 12-month contract period). 10.5.3 Unit Priced Systemwide Maintenance and Repair Contracts. Some systemwide maintenance and repair contracts, sometimes referred to as “on call contracts,” actually fall under traditional public works contracting as long as the scope is clearly and properly defined. To qualify as a traditional public works contr act instead of an on call contract, a systemwide maintenance or repair contract must cover specific activities planned in advance and budgeted (as opposed to on call contracts which cover activities that are not specifically planned and have no set budget). Examples include: • Sewer or storm drain “jetting” (cleaning) up to a certain budget amount, but not an exact number of linear feet • Sidewalk/trail construction or reconstruction in relation to the City’s pedestrian master plan (not necessarily a fixed quantity), up to a certain budget amount • Storm pond maintenance • Annual contracts for pavement crack sealing, chip seals, overlays, etc. City of Edmonds Purchasing Policies October 2024 23 These contracts can be structured so that they qualify as public works projects with readily determinable quantities and costs related to a fixed scope. Systemwide maintenance and repair contracts should not cover unanticipated projects or emergency repairs, which would fall under on call contracting. 10.6 Job Order Contracting A “job order contract” is a contract in which the contractor agrees to a fixed period, indefinite quantity delivery order contract, which provides for the use of negotiated, definitive work orders for public works. Pursuant to RCW 39.10.420, all public bodies of the state of Washington are authorized to award job order contracts and use the job order contracting procedure. The City Council has determined that the use of job order contracts will benefit the public by providing an effective means of reducing the total lead time and cost for the construction of public works projects for repair and renovation required at public facilities through the use of unit price books and work orders by eliminating time consuming, costly aspects of the traditional public w orks process, which requires separate contracting actions for each small project. The maximum total dollar amount that may be awarded under a job order contract is Four Million Dollars ($4,000,000) per year for a maximum of three (3) years. Any unused capacity from the previous year may be carried over for one year and added to the imme diately following year’s limit. Job order contracts may be executed for an initial contract term of not to exceed two (2) years, with the option of extending or renewing the job order contract for one (1) year. The City may have no more than three (3) job order contracts in effect at any one time. The maximum dollar amount for each work order issued under a job order contract is Five Hundred Thousand Dollars ($500,000), excluding Washington state sales and use tax. All work orders issued for the same project will be treated as a single work order for purposes of the dollar limit on work orders. The City will adhere to all requirements of Chapter 39.10 RCW with regard to its Job Order Contracting program. 10.7 Advertised Bids 10.7.1 Bidding Requirements The competitive bid process is generally (although not exclusively) used for public works projects. Dollar-value ranges indicated pertain to each purchase or public work (including tax, freight, handling and set up costs, if applicable). Purchases and public works cannot be broken into multiple segments to avoid compliance with State statutes or City policies and procedures. Negotiations on bids are not permitted. Depending on the dollar amounts involved, the City has options as to the procedure for soliciting bids. 10.7.2 Bid Procedures for Advertised Bids. A. Authorization for Bids Authorization to call for bids will be approved by the Department Director (or designee) for public works projects estimated at up to $75,000; and by the department director and the Mayor (or their designees) for a public works project costing over $75,000 up to $150,000. If the project is not included in the current City Council Approved budget or CIP, the City Council must authorize the call for bids for a project estimated at over $150,000. B. Publication of Notice RCW 35.23.352(1) sets out the advertising requirements for the public works bidding process. For all contracts that require bids, notice calling for sealed bids will be published in the official newspaper, or a newspaper of general circulation most likely to bring responsive bids at least thirteen (13) days prior to the due date for bids. After proper authorization, the requesting Department Director (or designee) will publish the Advertisement for Bids in the official newspaper. C. Notice Contents Notice (or advertisement) for bids should contain definite specifications and procedures for bidders to use to estimate their bids. A bid notice for public work should include: City of Edmonds Purchasing Policies October 2024 24 • Project title; • Nature and scope of the work to be done / goods sought ; • Location(s) where contract documents (plans and specifications) can be reviewed or obtained; • Cost, if any, to obtain a set of contract documents; • Place, date, and time that the sealed bids are due; • Place, date, and time that sealed bids will be opened (if different from above); • Statement that a bid bond must accompany the bid for public works projects; and • Statement that the City retains the right to reject any and all bids and to waive minor irregularities in the bidding process. In addition, the City may provide evaluation criteria; minimum qualification expectations; date, time, and location of pre-bid conference (if applicable); and name, address, and telephone number of the project contact to assist bidders in preparing responsive submittals. D. 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. 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. E. Bid Submittal and Opening Bids will be submitted as specified in the invitation for bids by the appointed date and time listed in the invitation. Bids are submitted to the City Clerk’s Office, where they are time and date stamped and processed. No bids will be opened prior to the predetermined date and time. No bid submitted after the appointed date and time will be accepted. If the bid is a sealed bid, all qualified bids will be opened and read aloud publicly at the appointed time. No City representative will 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. A written record will 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 will be recorded, open to public inspection, and available by telephone inquiry. Original specifications and the original bid responses will be retained for review and audit as required. Pursuant to RCW 39.04.105, within two (2) business days of the bid opening on a public works project that is the subject of competitive bids, the City must provide, if requested by a bidder, copies of the bids the City received for the project. The City must then allow at least two (2) full business days after providing bidders with copies of all bids before executing a contract for the project. F. Evaluation of Bids The requesting Department Director (or designee) will document all bids received and determine the lowest responsible bidder, if any, or may reject all bids. G. Bid Award Unless all bids are rejected, and unless the circumstances of RCW 35.23.352(2) are present, then a winning bid must be awarded to the lowest responsive and responsible bidder by the Department Director (or designee) for a public works project costing less than $75,000; and by the Department Director and the Mayor (or their designees) for a public works project costing $75,000 or more but less than $150,000. The City Council must award bids of $150,000 or more. The City may choose to reject all bids for any reason. The City may not negotiate with any of the bidders. City of Edmonds Purchasing Policies October 2024 25 RCW 35.23.352(2) allows the City to award the contract to the second lowest bidder whose bid is within five percent (5%) of the lowest bid and meets the same criteria as the lowest bidder if the City issues a written finding that: • the lowest bidder has delivered a project to the City within the last three years which was late, over budget, or did not meet specifications, and • the City does not find in writing that such bidder has shown how they would improve performance to be likely to meet project specifications. If the City awards a project to the second lowest bidder under this section, the City must make an annual report to the Washington State Department of C ommerce that includes the total number of bids awarded to certified minority or women contractors and describing how notice was provided to potential certified minority or women contractors. RCW 35.23.352(14). H. Considerations for Bid Solicitations The following considerations apply to bid solicitations: • Selection of a responsible bidder is based primarily on low bid, after factoring whenever possible such costs as maintenance and operations over the expected period of use. Consideration, however, may also be given for the following: o Ability, capacity, expertise and skill of the bidder to perform the contract. o Character, integrity, reputation, judgment, experience, and efficiency of bidder. o Ability to perform within time specified. o Quality of performance of previous contract(s). o Other information having a bearing on the decision to award the contract. • Minimum qualifications must be provided to ensure respondents are reasonably qualified. Minimum qualification requirement should be compared against the marketplace to ensure they are not overly restrictive. • To ensure consistency and fair process, the City will use standard forms, documents, contracts, and terms and conditions, when practical. The Public Works and Finance Departments will maintain templates for bid-related documents for use by departments. The City may use an evaluation selection committee to promote an open and proper selection. The requesting Department Director will appoint committee members to act in an advisory capacity. • When practical, the City will conduct a pre -bid conference to allow a thorough discussion of the City’s expectations, intent, scope, specifications, and terms. Interested companies should be encouraged to attend. • Every bidder for a public works contract that is expected to cost One Million Dollars ($1,000,000) or more must submit as part of the bid, or within one (1) hour after the published bid submittal time, the names of the subcontractors with whom the bidder, if awarded the contract, will subcontract for performance of the work of: HVAC (heating, ventilation, and air conditioning); plumbing as described in chapter 18.106 RCW; and electrical as described in chapter 19.28 RCW, or to name itself for the work. The bidder shall not list more than one subcontractor for each category of work identified, unless subcontractors vary with bid alternates, in which case the prime contract bidder must indicate which subcontractor will be used for which alternate. Failure of a bidder to submit as part of the bid the names of such subcontractors or to name itself to perform such work or the naming of two or more subcontractors to perform the same work shall render the bid nonresponsive and, therefore, void. RCW 39.30.060. • If no responsive bid is received on the first call the City may re-advertise and make a second call, or without any further call, it may enter into a negotiated contract, purchase the supplies, material or equipment or perform the work or improvement using its own employees. City of Edmonds Purchasing Policies October 2024 26 10.7.3 Responsible Bidder Criteria A. Mandatory responsible bidder criteria. RCW 39.04.350 outlines the criteria a bidder must meet in order to be considered responsible. 1. The bidder responsibility criteria set forth in this section applies to all public works contracts, no matter the size of the contract or what process is used. The criteria herein shall be used by the responsible Department to establish the minimum requirements for all contractors and subcontractors bidding on City contracts for public work (as those terms are defined in RCW 39.04.010). The bid documents shall set forth the documentation to be submitted by bidders to demonstrate their compliance with the mandatory responsible bidder criteria. 2. To be considered a responsible bidder and qualified to be awarded a City contract for public work, the bidder must: • At the time of bid submittal, have a certificate of contractor registration in compliance with chapter 18.27 RCW, a plumbing contractor license in compliance with Chapter 18.106 RCW, an elevator contractor license in compliance with Chapter 70.87 RCW, or an electrical contractor license in compliance with Chapter 19.28 RCW, as required under the provisions of those chapters; • Have a current state unified business identifier (UBI) number; • If applicable, have: o industrial insurance coverage for the bidder’s employees working in Washington as required in Title 51 RCW; o a state employment security department number as required in Title 50 RCW; and o a state excise tax registration number as required in Title 82 RCW; • Not be disqualified from bidding on any public works contract under RCW 39.06.010 or RCW 39.12.065(3); and • If bidding on a public works project subject to the apprenticeship utilization requirements in RCW 39.04.320, not have been found out of compliance by the Washington State Apprenticeship and Training Council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under Chapter 49.04 RCW for the one-year period immediately preceding the date of the bid solicitation. • Have received training on the requirements related to public works and prevailing wage under Chapters 39.04 and 39.12 RCW as required in RCW 39.04.350(1)(f). The bidder must designate a person or persons to be trained on these requirements. The training must be provided by the Department of Labor and Industries or by a training provider whose curriculum is approved by the Department. The Department, in consultation with the prevailing wage advisory committee, must determine the length of the training. Bidders that have completed three (3) or more public works projects and have had a valid business license in Washington for three (3) or more years are exempt from this subsection. The Department of Labor and Industries must keep records of entities that have satisfied the training requirement or are exempt and make the records available on its web site. Responsible parties may rely on the records made available by the Department regarding satisfaction of the training requirement or exemption; and • Within the three (3) year period immediately preceding the date of the bid solicitation, not have been determined by a final and binding citation and notice of assessment issued by the Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction to have willfully violated, as defined in RCW 49.48.082, any provision of chapter 49.46, 49.48, or 49.52 RCW. Before award of a public works contract, a bidder shall submit to the city a signed statement in accordance with Chapter 5.50 RCW verifying under penalty of perjury that the bidder is in compliance with the responsible bidder criteria requirement of this section. The City may award a contract in reasonable reliance upon such a sworn statement. City of Edmonds Purchasing Policies October 2024 27 3. A bidder must verify mandatory responsibility criteria for each first-tier subcontractor, and a subcontractor of any tier that hires other subcontractors must verify mandatory responsibility criteria for each of its subcontractors. Verification shall include that each subcontractor, at the time of subcontract execution, meets the responsibility criteria listed in RCW 39.04.350(1) and ECC 18.00.060. This verification requirement, as well as the mandatory responsibility criteria, must be included in every public works contract and subcontract of every tier. B. Supplemental responsible bidder criteria. 1. In addition to the mandatory bidder responsibility criteria set forth in RCW 39.04.350 and ECC 18.00.060(A), the responsible Department may adopt in connection with a particular project relevant supplemental bidder responsibility criteria which the bidder must meet. Those supplemental criteria, including the basis for evaluation and the deadlines for requesting modification of the supplemental bidder responsibility criteria and for appealing a determination that a low bidder is not responsible under the supplemental bidder responsibility criteria, shall be provided in the invitation to bid or bidding documents. 2. As relevant to a particular project, supplemental bidder responsibility criteria may be included to require that: • The bidder shall not owe delinquent taxes to the Washington State Department of Revenue without a payment plan approved by the Department of Revenue; • The bidder shall not currently be debarred or suspended by the federal government; • The bidder shall have complied with all applicable minority and women’s business enterprises, disadvantaged business enterprises, or other similar utilization requirements or goals on federally - funded public works projects with such requirements completed by the bidder within three (3) years of the bid submittal date, unless there are extenuating circumstances acceptable to the City; • The bidder shall not be listed as an ineligible contractor on the federal GSA Excluded Parties List System (EPLS); • If bidding on a public works project subject to the apprenticeship utilization requirements in ECC 18.00.050, the bidder: o shall not have been found out of compliance with apprenticeship requirements of ECC 18.00.050 unless otherwise excepted or waived in writing by the Mayor or the Mayor’s designee pursuant to that section for a one (1) year period immediately preceding the date of the bid submittal deadline; and o shall have complied with apprenticeship utilization goals on public works projects having such requirements that were completed by the bidder within a three (3) year period immediately preceding the date of the bid submittal deadline, unless there are extenuating circumstances acceptable to the City; • The bidder shall not have been convicted of a crime involving bidding on a public works contract within five (5) years from the bid submittal deadline; • The bidder’s standard subcontract form include the subcontractor responsibility language required by RCW 39.06.020, and the bidder have an established procedure which it utilizes to validate the responsibility of each of its subcontractors. The bidder’s subcontract form shall also include a requirement that each of its subcontractors shall have and document a similar procedure to determine whether the sub-tier subcontractors with which it contracts are also “responsible” subcontractors as defined by RCW 39.06.020; • The bidder shall not have a record of excessive claims filed against the retainage or payment bonds for public works projects during the previous three (3) years that demonstrate a lack of effective management by the bidder of making timely and appropriate payments to its subcontractors, suppliers, and workers, unless there are extenuating circumstances acceptable to the City; City of Edmonds Purchasing Policies October 2024 28 • The bidder shall have successfully completed projects of a similar size and scope as required by the contract documents for the project. In evaluating whether projects were successfully completed, the City may check owner references for previous projects and evaluate the owner’s assessment of bidder performance, including but not limited to quality control, safety record, timeliness of performance, use of skilled personnel, management of subcontractors, availability of and use of appropriate equipment, compliance with contract documents, and management of submittals process, change orders and close-out; • The bidder shall not have had any public works contract terminated for cause by a government agency during the five (5) year period immediately preceding the bid submittal deadline for the project, unless there are extenuating circumstances acceptable to the City; • The bidder shall not have judgments entered by a court of law against the bidder within five (5) years of the bid submittal date that demonstrate a pattern of failing to meet the terms of contracts, unless there are extenuating circumstances acceptable to the City; and • The bidder shall not have a documented pattern of prevailing wage complaints filed against it within five (5) years of the bid submittal date that demonstrates a failure to pay workers prevailing wages, unless there are extenuating circumstances acceptable to the City. 3. Supplemental bidder responsibility criteria may include any other criteria determined by the City to be relevant to the particular project being bid, including but not limited to the ability, capacity and skill of the bidder to perform, the experience and efficiency of the bidder, the financial situation of the bidder, and the performance of the bidder on previous contracts or services. 4. In a timely manner before the bid submittal deadline, a potential bidder may request that the City modify the supplemental bidder responsibility criteria. The City must evaluate the information submitted by the potential bidder and respond before the bid submittal deadline. If the evaluation results in a change of the criteria, the City must publish an addendum to the bidding documents identifying the modified criteria. 5. If the bidder fails to supply information requested concerning responsibility within the time and manner specified in the bid documents, the City may base its determination of responsibility upon any available information related to the supplemental criteria or may find the bidder not responsible. 6. If the City determines a bidder to be not responsible, the City must provide, in writing, the reasons for the determination. The bidder may appeal the determination within the time period specified in the bidding documents by presenting additional information to the City. The City must consider the additional information before issuing its final determination. If the final determination affirms that the bidder is not responsible, the City may not execute a contract with any other bidder until two (2) business days after the bidder determined to be not responsible has received the final determination. 7. The invitation to bid or bidding documents shall specify the times, manner and means of communications, deadlines and determinations required by this section. 10.7.4 Apprentice Requirements The City’s apprenticeship requirements will comply with the requirements of RCW 39.04.320. A. Definitions. 1. “Apprentice” means an apprentice enrolled in a state -approved apprenticeship training program. 2. “Contractor” means a person, corporation, partnership, limited liability company, or joint venture entering into a contract with the City to construct a public work. 3. “Labor hours” means the total number of hours worked by workers receiving an hourly wage who are directly employed on the site of the public work and who are subject to state or federal prevailing wage requirements. “Labor hours” shall also include hours worked by workers employed by subcontractors on the site of the public work, and shall include additional hours worked as a result of a contract or project adjustment or pursuant to an agreed-upon change order. City of Edmonds Purchasing Policies October 2024 29 4. “Estimated cost” means the anticipated cost of a public work, as determined by the City, based upon the expected costs of materials, supplies, equipment, and labor, but excluding taxes and contingency funds. 5. “Public work” refers to all City funded construction projects that constitute a public work pursuant to RCW 39.04.010 as now or hereafter amended and estimated to cost $1,000,000 or more. 6. “State-approved apprenticeship training program” means an apprenticeship program approved or recognized by the Washington State Apprenticeship and Training Council. 7. “Subcontractor” means a person, corporation, partnership, limited liability company, or joint venture that has contracted with the contractor to perform all or part of the work to construct a public work by a contractor. B. Apprentice utilization. Apprentices shall be utilized for the construction of public works by contractors and subcontractors in accordance with this section. 1. Apprenticeship utilization program requirements. As of July 1, 2024, for all public works contracts awarded with an estimated cost of Two Million Dollars ($2,000,000) or more, all specifications must require that no less than fifteen percent (15%) of the labor hours be performed by apprentices. For contracts advertised for bid on or after July 1, 2026, for all public works contracts awarded with an estimated cost of One Million Five Hundred Thousand Dollars ($1,500,000) or more, all specifications must require that no less than fifteen percent (15%) of the labor hours be performed by apprentices. For contracts advertised for bid on or after July 1, 2028, for all public works contracts awarded with an estimated cost of One Million Dollars ($1,000,000) or more, all specifications must require that no less than fifteen percent (15%) of the labor hours be performed by apprentices. 2. Contract requirements. Contract documents for such public works construction projects shall include provisions detailing the apprentice labor requirements. There must be a specific line item in the contract specifying that apprenticeship utilization goals should be met, monetary incentives for meeting the goals, monetary penalties for not meeting the goals, and an expected cost value to be included in the bi d associated with meeting the goals. All contracts must include a provision that a contractor or subcontractor may not be required to exceed these apprenticeship utilization requirements. 3. Monitoring. The City will include an Apprenticeship Utilization Form for contractors to complete when submitting their bid documents, which identifies the intended usage of apprentices by the contractor and any subcontractors. This document will require the identification of individual apprentices by name and Washington State apprenticeship registration number, an estimate of the total apprentice labor hours, and the identification of apprentice hours to be worked by minorities, women, persons with disabili ties and disadvantaged youth. This provision is not intended and shall not be used to discriminate against any applicant for training. In addition, the City will require the submittal of an Apprenticeship Verification Form by the contractor at the conclusi on of the public works project that will identify the actual work performed by apprentices for the contractor and subcontractors. The City must report apprentice utilization by contractor and subcontractor to the supervisor of apprenticeship at the Department of Labor & Industries by final project acceptance. 4. Failure to meet utilization goal. Failure by a contractor to comply with established apprenticeship requirements, unless otherwise adjusted or waived in writing as set forth below, may be deemed a breach of contract for which the City shall be entitled to all remedies allowed by law under the contract. Failure to comply with the apprenticeship requirements may also be considered evidence bearing on a contractor’s qualification for award of future contracts with the City. 5. Adjustment and waiver. The responsible Department Director, or designee, may adjust or waive the requirements of this section for a specific project at any time for the following reasons: • The demonstrated lack of availability of apprentices in specific geographic areas; • A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation; • A participating contractor has demonstrated a good faith effort to comply with the requirements of City of Edmonds Purchasing Policies October 2024 30 RCW 39.04.320; or • Other criteria the City deems appropriate that are not inconsistent with the purpose and goals of this section, which are subject to review by the City Council. 10.8 Change Orders on Public Works Construction Contracts Approval of change orders on Public Works Construction Contracts shall be in accordance with the following requirements: 1. City Council members shall be notified by e-mail of any change order in excess of $75,000. 2. City Council approval shall be required for: • any change order in excess of $150,000; and • any change order which puts the total of change orders on a project over the designated management reserve. If City Council approval is required for a change order, but circumstances require a speedier approval, the Mayor is authorized to approve the required work provided that the change order and a written statement of the special circumstances requiring speedier approval is placed on the next City Council agenda for review. 10.9 Final Acceptance of Public Works Projects The Mayor (or designee) is authorized to accept public works projects as complete, and to declare that Final Acceptance has been achieved, after the contractor has completed all tasks and furnished to the City all documentation required by the public works contract and by applicable law. City of Edmonds Purchasing Policies October 2024 31 11.0 PROCUREMENT USING FEDERAL FUNDS When procuring property and services under a Federal award, the City will follow 2 CFR §200.318 General procurement standards through §200.326 Contract provisions or City of Edmonds Purchasing Policy procedures, whichever is more restrictive. Contracts for more than the federal simplified acquisition threshold currently set at $250,000 must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms and provide for such sanctions and penalties as appropriate. For questions on appropriate remedies, sanctions and penalties, contact the City Attorney’s Office. Contracts and sub-grants of amounts in excess of $250,000 require that the City comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act. The City will monitor procurements to avoid duplicative purchases and will continue to enter into inter -entity agreements to realize cost savings for shared goods and services when possible. The tables set forth below outline procurement requirements when using Federal funds in different procurement situations. The City will verify and document that vendors are not suspended or debarred from doing business with the Federal government. Federal guidelines require grant recipients to ensure vendors with contracts or purchases exceeding $25,000 are not suspended or d ebarred from participating in federal programs. All City purchases and contracts issued from federal resources that exceed $25,000 are subject to these guidelines. Before initiating any purchases or contracts with federal funds that exceed or may potentially exceed $25,000 within the fiscal year, the responsible administrator will verify that the vendor is not listed on the System for Award Management (SAM) exclusion list by checking at www.sam.gov. If the vendor is listed on the exclusion list, the administrator will not complete the purchase or contract with the vendor. If the exclusion list shows no records for the vendor, the administrator will print the screen, retain a copy in the department files, and proceed to process the purchase or contract. NOTE: Washington State Department of Enterprise Services (DES) does not check for suspension or debarment on State bid contracts. 11.1 Single Audit Act – The City, as a recipient of Federal funds, will adhere to the Federal regulations outlined in 2 CFR §200.501 as well as all applicable Federal and State statutes and regulations. 11.2 Closure – A project agreement end date will be established in accordance with 2 CFR §200.309. Any costs incurred after the project agreement end date are not eligible for Federal reimbursement. 11.3 Code of Conduct for Federal Purchases 11.3.1 Purpose – The purpose of the Code of Conduct is to ensure the efficient, fair and professional administration of federal grant funds in compliance with 2 CFR §200.112, 2 CFR §200.318 and other applicable Federal and State standards, regulations and laws. 11.3.2 Application – This Code of Conduct applies to all elected officials, employees or agents of the City of Edmonds engaged in the award or administration of contracts supported by federal grant funds. 11.3.3 Requirements – No elected official, employee or agent of the City of Edmonds will participate in the selection, award or administration of a contract supported by federal grant funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the following has a financial or other interest in the firm selected for the award: City of Edmonds Purchasing Policies October 2024 32 • The City elected official, employee, or agent; or • Any member of their immediate family; or • Their partner; or • An organization that employs, or is about to employ, any of the above. The City of Edmonds’ elected officials, employees or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from contractors, potential contractors or subcontractors. 11.3.4 Remedies – To the extent permitted by federal, state or local laws or regulations, violation of these standards may cause penalties, sanctions or other disciplinary actions to be taken against the City of Edmonds’ elected officials, employees or agents, or the contractors, potential contractors, subcontractors or their agents. Any potential conflict of interest will be disclosed in writing to the federal awarding agency or pass-through entity in accordance with applicable federal awarding agency policy. 11.4 Product Procurement Thresholds – If any federal funds are used to procure products, the more restrictive of the federal and state or local procurement thresholds must be used as set forth in Table 1: TABLE 1 Product Procurement Method Thresholds Very Small Purchase (Federal “micro-purchase”) Procedures – No required quotes. However, must consider prices reasonable, and to the extent practicable, distribute equitably among suppliers 2 CFR 200.320(a) City: Under $20,000 Federal: $10,000 or less MUST USE more restrictive $10,000 federal threshold Small Purchase Procedures (Telephone) – Obtain/document telephonic quotes from at least three (3) qualified vendors 2 CFR 200.320(b) City: $20,000 up to $35,000 Federal: Under $250,000 MUST USE more restrictive City threshold instead of “under $250,000” federal threshold Small Purchase Procedures (Written) – Obtain/document written quotes from a reasonable number of qualified vendors (at least three (3)). 2 CFR 200.320(b) City: More than $35,000 but less than $100,000 Federal: Under $250,000 MUST USE more restrictive City threshold instead of “under $250,000” federal threshold Sealed Bids / Competitive Bids (Formal) 2 CFR 200.320(c)(1-2) *Cost analysis required before receiving bids or proposals – 2 CFR 200.323 City: More than $100,000 Federal: $250,000 or more For bids between $100,000 and $249,999, MUST USE more restrictive City threshold instead of “$250 or more” federal threshold For bids $250,000 or more MUST USE more restrictive federal threshold* City of Edmonds Purchasing Policies October 2024 33 11.5 Services Procurement Thresholds – If any federal funds are used to contract for the services, the more restrictive requirements of 2 CFR Sec. 200 apply as set forth in Table 2: TABLE 2 Services Procurement Method Federal Requirements Very Small Purchase (Federal “micro-purchase”) Procedures (For Purchased Services) 2 CFR 200.320(a) For Purchased Services costing under $10,000, no quotes are required. However, must consider price as reasonable, and to the extent practicable, distribute equitably among vendors. Small Purchase Procedures (For Purchased Services) 2 CFR 200.320(b) For Purchased Services costing more than $10,000 up to $100,000: MUST USE more restrictive federal requirements for procurement of purchased services For procurement of Purchased Services, must obtain/document quotes from a reasonable number of qualified sources (at least three (3)). Sealed / Formal Bids (For Purchased Services) 2 CFR 200.320(c)(1-2) *Cost analysis required before receiving bids or proposals (2 CFR 200.323) For Purchased Services costing between $100,000 and $250,000: MUST USE more restrictive $100,000 City threshold for procurement of Purchased Services, rather than $250,000 federal threshold. For Purchased Services costing $250,000 or more: MUST USE more restrictive $250,00 federal threshold* Competitive Proposals (For Personal Services) Selection is based on a determination of the “most qualified firm” For Personal Services costing up to $250,000: MUST USE more restrictive City selection criteria. For Personal Services costing $250,000 or more: MUST USE more restrictive $250,000 federal threshold. For procurement of Personal Services, the following tasks must be undertaken: • Must publicize request for proposals soliciting from an adequate number of qualified sources; • Must maintain written method for conducting technical evaluations; • Contract must be awarded to the responsible firm whose proposal is most advantageous to the program City of Edmonds Purchasing Policies October 2024 34 Competitive Proposals (For A/E Services) Selection is based on a determination of the “most qualified firm” For procurement of all A/E services with federal funds, the following tasks must be undertaken: • Must publicize request for proposals soliciting from an adequate number of qualified sources; • Must maintain written method for conducting technical evaluations; • Contract must be awarded to the responsible firm whose proposal is most advantageous to the program Non-Competitive Proposals Appropriate only when: • Available only from a single source; or • Public emergency exists; or • Expressly authorized by awarding or pass- through agency in response from written request from City of Edmonds; or • After soliciting a number of sources, competition is deemed inadequate. City of Edmonds Purchasing Policies October 2024 35 11.6 Public Works Procurement Thresholds – If the City will be applying any federal funds to contract for public works projects, the City must follow the more restrictive of the federal and state or local procurement thresholds as set forth in Table 3: TABLE 3 Public Works Procurement Method Thresholds Federal “micro-purchase” Procedures No required quotes. However, must consider price as reasonable, and to the extent practicable, distribute equitably among suppliers 2 CFR 200.320(a) Project cost = $10,000 or less MUST USE federal procurement requirements Limited Public Works Process Procedures – (RCW 39.04.155(3)) – Invite electronic or written quotations from a minimum of three (3) qualified contractors from the appropriate small works roster 2 CFR 200.320(b) Project cost = Between $10,000 and $50,000 MUST USE more restrictive City threshold instead of “under $250,000” federal threshold Small Works Roster Procedures – Invite electronic or written quotations from a minimum of five (5) qualified contractors from the appropriate small works roster 2 CFR 200.320(c)(1-2) Project cost = Between $50,000 and $250,000 MUST USE more restrictive “under $250,000” federal threshold Small Works Roster Procedures – Invite electronic or written quotations from a minimum of five (5) qualified contractors from the appropriate small works roster AND City must also notify the remaining contractors on the appropriate small works roster that quotations are being sought. Refer to “Small Works Roster” section for notice requirements 2 CFR 200.320(c)(1-2) Cost analysis is required before receiving bids or proposals (2 CFR 200.323) Project cost = Between $250,000 and $350,000 MUST USE more restrictive $250,000 federal threshold instead of City’s $350,000 threshold Sealed Bids / Competitive Bids (Formal) 2 CFR 200.320(c)(1-2) If cost is above $250,000, cost analysis is required before receiving bids or proposals (2 CFR 200.323) $350,000 or less (optional) More than $350,000 (required) MUST USE more restrictive $250,000 federal threshold instead of City’s $350,000 threshold City of Edmonds Purchasing Policies October 2024 36 12.0 GRANT AGREEMENTS The Mayor is authorized to execute grant agreements for capital projects where the City Council previously authorized the project in the current Capital Improvement Program (CIP) and, for growth-related projects, where the scope of the project is substantially consistent with the project description in the Capital Facilities Plan (CFP). All other grant agreements must be approved by the City Council before execution. Once a grant agreement has been properly executed as provided above, the Department Director (or designee) overseeing the capital project may execute documents necessary to implement the grant agreement, including documents necessary for the City to be reimbursed by the granting agency. The Federal Highway Administration, through the State, sometimes authorizes Federal transportation funding to the City of Edmonds for transportation projects. The Code of Federal Regulations, 2 CFR 200.415(a) requires that final fiscal reports or vouchers requesting payment under Federal agreements include the following certification, which, under the this policy, may be signed by the Mayor, Director, or City Engineer, who are hereby authorized to legally bind the City, for the sole purpose of requesting reimbursement for Federally funded transportation projects, to terms that are consistent with the applicable grant agreement: “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).” City of Edmonds Purchasing Policies October 2024 37 13.0 INTERLOCAL AGREEMENTS RCW 39.34.030 allows the City to join with other governmental agencies for the purchase of supplies, equipment, or services. This is done by entering into a written Intergovernmental Cooperative Purchasing Agreement (also known as an “Interlocal Agreement”). All Interlocal Agreements must comply with the requirements of Chapter 39.34 RCW and must be either filed with the County Auditor or posted on the City’s website or other electronically retrievable public source (RCW 39.34.040). All Interlocal Agreements must be approved by the City Council. Amendments to an Interlocal Agreement that simply extend the term of the agreement may be approved by the Mayor without prior City Council approval. Solicitation of bids/quotations is not required when purchases of materials, supplies, or equipment are made under State standard contracts or similar contracts executed by and through other local governments (also known as “piggybacking”). Prior to making a purchase under such an agreement, the City must ensure that the agency that originally awarded the bid, proposal, or contract followed its own bid law requirements. The originating agency must also have fulfilled one of two additional public notice requ irements: (1) posted the bid or solicitation notice on a web site established and maintained by a public agency, purchasing cooperative, or similar service provider, for purposes of posting public notice of bid or proposal solicitations ; or (2) provided an access link on the state's web portal to the notice. The City may also make a bid call with another government entity as a joint purchase that complies with the procurement requirements of both jurisdictions. Neither solicitation of bids/quotations nor an Interlocal Agreement is required when purchasing materials, supplies, or equipment from or through the United States of America or any agency thereof. (RCW 39.32.070). All internal procurement approval requirements must be observed, and the process must comply with state statutory requirements. City of Edmonds Purchasing Policies October 2024 38 14.0 REAL PROPERTY Contracts and agreements that relate to real property, other than as described below, must be approved by the City Council. The Mayor is authorized to enter into leases of real property where the rent does not exceed $50,000 total over the term of the lease; provided, that the City Council’s approval is required for all leases of real property that are for a term of more than five (5) years. The Mayor, Director of Public Works, Director of Parks, Recreation and Human Services, and Director of Planning and Development are authorized to accept dedications, easements, rights-of-way, fee estates, or other interests in real property for use by or on behalf of the City. Pursuant to this authority, the Mayor and designated Directors are each authorized to sign and accept delivery of real property acquisition documents on behalf of the City. Surplus of Real Property. There are few statutory requirements regarding the disposal of surplus real property . However, Chapter 39.33 RCW addresses intergovernmental property transfers and the transfer of real property originally acquired for public utility purposes. Otherwise, depending on the situation and any relevant requirements of the Edmonds City Code, real estate sale methods to surplus real property may include Requests for Proposals, sealed bids, auction, direct negotiations, real estate brokers/agents, or multiple listing services. See also, Section 16.0 Sale or Disposal of City Property. City of Edmonds Purchasing Policies October 2024 39 15.0 SOLE SOURCE, SPECIAL MARKET CONDITIONS, AND EMERGENCIES Situations may occur when competition among multiple vendors is not practical. These situations, as outlined in RCW 39.04.280 (Competitive bidding requirements – Exemptions), include: • There is clearly and legitimately only one source capable of supplying the good or service in a timely fashion. • There are special circumstances or market conditions that result in only on e appropriate source. • Purchases of insurance or bonds. • Purchases or public works needed in the event of an emergency. 15.1 Sole Source Purchases may be made from a sole source vendor without soliciting other quotes or bids. Sole source purchases are those that are clearly and legitimately limited to a single source of supply, such as licensed or patented goods or services; items that are uniquely compatible with existing equipment, inventory, systems, programs or services; items that meet City standards (such as water meters); and factory authorized warranty services. If, after conducting a good faith review of available resources, the req uesting Department Director determines that there is only one source of the required materials, supplies, equipment or service (including public works), a purchase may be awarded without complying with established bid requirements. If the determination of sole source is not clear, the City Attorney’s Office should be consulted with regard to whether a vendor can legitimately be defined as sole source. The requesting department will submit a written request for sole source procurement with negotiated contract price, terms, conditions and delivery for approval. The vendor must certify that the City is getting the lowest price offered as compared to similarly situated clients, terms and conditions. Department Directors can approve Sole Source purchases up to $75,000, the Department Director and the Mayor can approve sole source purchases costing over $75,000 up to $150,000. Council must approve sole source purchases costing more than $150,000. Immediately after the award of any sole source purchase, the factual basis for awarding the same must be recorded and open to public inspection. 15.2 Special Market Conditions The City may waive established bidding requirements if an opportunity arises to purchase favorably -priced supplies, materials or equipment unrelated to public works projects that will be sold before the City can conduct the bid process. The City may waive such requirements for contracts for the procurement of parts and services for equipment, and technical support for computer software and hardware, that the City is already using. Other costs associated with a potential purchase, such as the need for additional staff training, may also be considered. Waiver will be authorized by the Mayor (or designee). Immediately after the award of any special market conditions contract, the contract and the factual basis for awarding the same must be recorded and open to public inspection. 15.3 Emergencies In case of unforeseen circumstances beyond the control of the City that present a real and immediate threat to the City’s ability to properly perform essential functions, or to City property or the safety of citizens and/or staff, the Mayor (or designee) may waive bid requirements to purchase supplies, materials, equipment or services to stabilize the emergency condition. Purchases must be properly documented as an emergency as soon as possible following the event. Pursuant to the provisions of RCW 39.04.280, within two (2) weeks of confirming the emergency existed, the City Council will adopt a resolution certifying the existence of the emergency. All emergency procurements under this section shall be considered to be in full force and effect until the City Council acts otherwise. City of Edmonds Purchasing Policies October 2024 40 16.0 SALE OR DISPOSAL OF CITY PROPERTY 16.1 Authorization The Mayor may authorize the sale or disposal of City property, provided that the property is no longer needed and that notice of intention to sell is given as provided in this section. The property will be deemed as surplus or scrap. The Mayor (or designee) is authorized to surplus vehicles and equipment designated for replacement or disposal in accordance with state law, without reference to the provisions of Chapter 3.01 ECC. Permission must be obtained from the grantor before selling or disposing of any property which was purchased with grant funding. Failure to obtain permission could obligate the City to repay grant funding used to purchase the property. 16.2 Sale / Disposal / Donation Sales of surplus items to other governmental agencies may occur via private sale. Other sales of surplus items will be sold via public auction. It is the City’s policy to utilize third -party auction services rather than conduct the auction directly. Scrap may be sold via public auction, via private sale at prices established by current market conditions, or may be disposed of if there is not a viable market. The Mayor is authorized to donate items with a nominal value to a charitable organization which is tax exempt pursuant to Internal Revenue Code Section 501(c)(3). 16.3 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 will be responsible for the sale, trade, or other disposition of surplus property and scrap belonging to the City when used for a trade-in. 16.4 Public Notice of Sale If the City opts not to use a third-party auction service and decides to conduct an auction directly, the notice of intent to sell surplus or scrap property at a public sale must be published once a week for two (2) consecutive weeks in the City’s official newspaper immediately prior to the sale. The notice will state the time and place at which the property will be sold. Any other reasonable means to attract potential buyers to the sale may be used in conjunction with the notice posted in the official newspaper. 16.5 Conflict of Interest Because City employees have more information than the general public about City property to be auctioned, and an appearance of fairness is necessary to maintain the public trust, employees, their spouses, and their agents are not permitted to bid on or buy any property auctioned or sold directly by the City. 16.6 Inventoried Items Surplus, scrap, or trade-in of any inventoried item will be confirmed by the employee responsible and approved by the Department Director. Documentation of the transfer of inventoried items will be provided to the Finance Department. Each department will be responsible for storing and retaining an inventory of such property until issued disposition instructions. City of Edmonds Purchasing Policies October 2024 41 17.0 MISCELLANEOUS 17.1 Budget Adjustments Department Directors (or designees) must ensure that purchases are initiated only when departmental appropriations are sufficient to cover the anticipated cost. Expenditures that exceed departmental appropriations require approval via the Budget Amendment Process. 17.2 Forms and Templates Purchasing forms and templates may be retained in a public directory. 17.3 Recyclables, Noncompostable Food Service Containers, Single-Use Plastic Utensils Every effort will be made to use products made from recycled materials if such products are available, of acceptable quality, and generally priced the same as similar, non-recycled products (Resolution 766). City staff and all parties who contract with the City for provision of public events must comply with Chapter 6.90 ECC (“Noncompostable Food Service Containers Prohibition”) and Chapter 6.95 ECC (“Single -Use Plastic Utensils – Prohibition”). 17.4 Reimbursement of Travel and Meal Expenses Reimbursement of travel and meal expenses is governed by the City Personnel Policies, Chapter IX. 17.5 Store-Issued Charge Cards It is sometimes necessary to use store-issued charge cards. Department Directors will request prior approval from the Finance Director or designee before establishing an account. 17.6 Purchase Cards Purchase cards can be issued with the approval of the Finance Director. They are to be used solely for City- authorized business purposes. See Credit Card Policy. 17.7 Quick Checks Quick checks may be issued to avoid incurring penalties, interest, or late charges. Submit requests for quick checks to the Finance Department. Quick checks will be approved by the Finance Director (or designee). Departments should avoid requests for quick checks by informing vendors of invoice deadlines and payment schedules. 17.8 Early Release Any checks requiring an early release must be approved by the Finance Director (or designee). Departments should avoid requests for early release by informing vendors of invoice deadlines and payment schedules. 17.9 Petty Cash Petty cash funds cover minor disbursements. Employees may be reimbursed from petty cash funds for authorized purchases that total less than the established petty-cash limit. 17.10 Finance Committee The Finance Committee, composed of two Council members and the Finance Director, will review and recommend updates to the City’s purchasing and accounts payable policies and procedures, as necessary. City of Edmonds Purchasing Policies October 2024 42 EXHIBIT 1 City of Edmonds, WA CONFLICT OF INTEREST DISCLOSURE FORM FOR CITY COUNCIL MEMBERS, MAYOR, DIRECTORS, and STAFF Name (please print) Date Position It is the policy of the City of Edmonds to address how issues of actual, potential and perceived conflicts of interest involving elected officials, directors, and employees of the City should be identified, disclosed and managed. This form is designed to identify and disclose known conflicts in an effort to properly manage them. I have read the City of Edmonds’s Conflict of Interest policy and understand that as an employee/Elected Official of the City of Edmonds it is my obligation to act in a manner which promotes the best interests of the City and to avoid conflicts of interest when making decisions and taking actions on behalf of the City of Edmonds. My answers to this disclosure form are correctly stated to the best of my knowledge and belief. Should a possible conflict of interest arise in my responsibilities to the City of Edmonds, I recognize that I have the obligation to notify, based on my position, the appropriate designated individual (Director, Mayor, City Council member), and to abstain from any participation in the matter until the City of Edmonds can determine whether a conflict exists and how that conflict shall be resolved. If any relevant changes occur in my affiliations, duties, or financial circumstances, I recognize that I have a continuing obligation to file an amended “Conflict of Interest Disclosure Form” with the appropriate designated department. I understand that the information on this form is solely for use by the City of Edmonds and is considered confidential information. Release to external parties will be only when required by law. Signature Date Please complete the following questions and submit this form to the Human Resources Director of the City of Edmonds. 1. Are you or a member of your immediate family an officer, director, trustee, partner (general or limited), employee or regularly retained consultant of any company, firm or organization that presently has business dealings with the City of Edmonds or which might reasonably be expected to have business dealings with the City of Edmonds in the coming year? Yes No If yes, please list the name of the company, firm or organization, the position held, and the nature of the business which is currently being conducted with the City of Edmonds or which may reasonably be expected to be conducted with the City of Edmonds in the coming year: 2. Do you or does any member of your immediate family have a financial interest, direct or indirect, in a company, firm or organization which currently has business dealings with the City of Edmonds or which may reasonably be expected to have such business dealings with the City of Edmonds in the coming year? Yes No If yes, please list the name of the company, firm or organization, the nature of the interest and the name of the person holding the interest, and the nature of the business which is currently being conducted with the City of Edmonds or which may reasonably be expected to be conducted with the City of Edmonds in the coming year: City of Edmonds Purchasing Policies October 2024 43 EXHIBIT 1 3. Do you or does any member of your immediate family have a financial or personal interest in an entity in which the City of Edmonds has a financial or other vested interest. Yes No If yes, please provide details below: 4. Have you or an immediate family member accepted gifts, gratuities, lodging, dining, or entertainment that might reasonably appear to influence your judgment or actions concerning the business of the City of Edmonds? Yes No If yes, please provide details below: 5. Do you have any other interest or role in a firm or organization, where that interest or relationship might reasonably be expected to create an impression or suspicion among the public having knowledge of your acts that you engaged in conduct in violation of your trust as a trustee, officer, Director or staff member? Yes No If yes, please provide details below: Please use additional pages as needed. If any material changes to the responses provided on this disclosure form occur, the trustee, officer or employee is required to update the information on this form in writing and submit the update to the City of Edmonds Human Resources Director. Form reviewed by: Remedial Action(s) to be taken: The City of Edmonds will follow up on all recommended actions to ensure compliance.