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HomeMy WebLinkAboutCity Council Committees - Operations Committee - 05/15/2018 (2) Unless otherwise noted, the Operations Committee meets at 4 p.m. on the first and third Tuesday of each month in Kent City Hall, Council Chambers East, 220 Fourth Avenue South, Kent, WA 98032. For additional information please contact Bonnie Peterson at 253-856-5705, or via email at BPeterson@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk’s Office at 253-856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 1-800-833-6388. Operations Committee Agenda Chair - Les Thomas Councilmembers - Bill Boyce, Dennis Higgins Derek Matheson, Chief Administrative Officer Tuesday, May 15, 2018 4:00 p.m. Item Description Action Speaker Time 1. Call to Order Chair Thomas 01 MIN. 2. Roll Call Chair Thomas 01 MIN. 3. Changes to the Agenda Chair Thomas 01 MIN. 4. Excused Absence for Councilmember Thomas - Approve YES William Boyce 5. Approval of Minutes dated May 1, 2018 YES William Boyce 6. Approval of Check Summary Report dated 04/16/2018 - 04/30/2018 YES Aaron BeMiller 05 MIN. 7. Lobbyist Consultant Services Agreement - Recommend YES Derek Matheson 15 MIN. 8. Update Purchasing and Contracting Code Provisions – Ordinance YES Tammy White 05 MIN. 9. Adjournment Chair Thomas 01 MIN. OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: May 15, 2018 TO: Operations Committee SUBJECT: Excused Absence for Councilmember Thomas - Approve MOTION: Move to approve excused absences for Councilmember Thomas for the meetings of May 1, 2018 and May 15, 2018. 4 Packet Pg. 2 OPERATIONS COMMITTEE Derek Matheson, Chief Administrative Officer 220 Fourth Ave S Kent, WA 98032 256-856-5712 DATE: May 15, 2018 TO: Operations Committee SUBJECT: Approval of Minutes dated May 1, 2018 MOTION: Move to approve the minutes dated May 1, 2018 ATTACHMENTS: 1. May 1 2018 Minutes Temp (PDF) 5 Packet Pg. 3 Operations Committee Minutes Approval Pending Page 1 of 3 Date: May 01, 2018 Time: 4:00 p.m. Place: Chambers East Attending: Bill Boyce, Dennis Higgins, Toni Troutner Agenda: 1. Call to Order Council President Bill Boyce called the meeting to order at 4:00 2. Roll Call Councilmember Les Thomas had an excused absence 3. Changes to the Agenda No changes 4. Excused Absence for Councilmember Thomas No motion, see minutes of May 15, 2018. 5. Approval of Meeting Minutes dated April 17, 2018. Councilmember Toni Troutner moved to approve the minutes dated April 17, 2018. Boyce seconded the motion, which passed 2-0 6. Approval of Check Summary Reports dated 4/1/18 thru 4/15/18. Troutner moved to approve the check summary report dated 4/1/18 thru 4/15/18 Boyce seconded the motion, which passed 2-0. 7. School Zone Traffic Safety Camera Program Fund Expenditures. Police Chief Ken Thomas presented the car per officer program. This program will allow for better recruitment and retention of staff. Chief Thomas explained that a car per officer is the industry standard and this will allow Kent to be more competitive in recruiting new police officers. The funds to purchase the cars will be provided from the School Zone Traffic Safety Camera Program. Kent City code requires funds derived from the use of traffic safety cameras be used first to cover the cost of administering the program and excess funds to be used for criminal justice related purposes. The current balance of the fund is $876,000. This balance will allow for the initial 14 cars to be purchased. The department intends to complete outfitting of the fleet over a three year period of time. Chief Thomas discussed various benefits, most importantly the ability 5.a Packet Pg. 4 At t a c h m e n t : M a y 1 2 0 1 8 M i n u t e s T e m p ( 1 2 2 4 : A p p r o v a l o f M i n u t e s d a t e d M a y 1 , 2 0 1 8 ) Operations Committee Minutes Approval Pending Page 2 of 3 to rapidly respond to critical incidents. The program will also free up much needed parking spaces at police headquarters. Troutner commented that this is a one-time expenditure Boyce asked who would get the cars first. Chief Thomas explained he would start with sergeants first and on down by seniority. Troutner Recommend Council authorize the expenditure of $868,000 from the School Zone Traffic Safety Camera Fund, amend the budget, and authorize the Mayor to sign all documents necessary to purchase 14 police vehicles in order to initiate a car-per-officer program, subject to final terms acceptable to the Police Chief and City Attorney. Boyce Seconded the motion, which passed 2-0 8. CORE Networking Routing Contract for Technical hardware Upgrade James Endicott, Information Technology Technical Services Manager reported that on March 1, 2018 CORE network routers failed, which created an emergent need to order a replacement. IT purchased the routers under the state Department of Enterprise Services (DES) contract instead of the purchasing with Allied Telesis who is currently under contact with the city. Endicott explained how the support the city is receiving from their current vendor isn’t meeting contract obligation and moving forward with replacement of the system on the DES contract was a necessity to maintain the city CORE Networking System. Boyce asked if we have an Service Level Agreement (SLA) with Allied Telesis. Endicott said they do have an SLA but CORE is not the only system that the SLA supports. The CORE only represents about ten percent of that cost. Boyce asked about the stability of the other networks in the city. J. Endicott explained the edge network will need to be replaced but they plan to do the replacements in phases starting with the CORE. Troutner Recommend the City Council authorize the Mayor to purchase technology equipment through the cooperative purchasing agreement the state Department of Enterprise Services has with Cisco Systems, Inc., if those purchases are within the City’s established budgets and made during the term of the state contract, which is current through May 31, 2019 and any later contract extensions the state may authorize. Councilmember Dennis Higgins seconded the motion, which passed 3-0. 9. Finance Director’s Report, Including the March 2018 Financial Report 5.a Packet Pg. 5 At t a c h m e n t : M a y 1 2 0 1 8 M i n u t e s T e m p ( 1 2 2 4 : A p p r o v a l o f M i n u t e s d a t e d M a y 1 , 2 0 1 8 ) Operations Committee Minutes Approval Pending Page 3 of 3 Finance Director Aaron BeMiller presented his First Quarter report he summed up by saying “steady as she goes and nothing alarming.” BeMiller had three additional items 1. His department is working on central services cost allocation plan – it is a Federally compliant plan that will allow each department to allocate for services they provide to clients. Higgins commented that this will help bring clarity to the citizens of Kent around the general fund. By doing this type accounting we will be able to go back to the public and represent to them properly items that come out of the general fund. 2. State Auditors are now on site doing 2017 audit 3. BeMiller expressed appreciation for his finance staff and their work on the 2017 year-end report A. Adjournment The meeting was adjourned at 4:38 by Council President Bill Boyce. Bonnie Peterson Interim Operations Committee Secretary 5.a Packet Pg. 6 At t a c h m e n t : M a y 1 2 0 1 8 M i n u t e s T e m p ( 1 2 2 4 : A p p r o v a l o f M i n u t e s d a t e d M a y 1 , 2 0 1 8 ) FINANCE DEPARTMENT Aaron BeMiller, Finance Director 220 Fourth Avenue South Kent, WA 98032 253-856-5264 DATE: May 15, 2018 TO: Operations Committee SUBJECT: Approval of Check Summary Report dated 04/16/2018 - 04/30/2018 MOTION: Move to approve the check summary report dated 04/16/2018 - 04/30/2018 6 Packet Pg. 7 OFFICE OF THE MAYOR Derek Matheson, Chief Administrative Officer 220 Fourth Avenue South Kent, WA 98032 253-856-5710 DATE: May 15, 2018 TO: Operations Committee SUBJECT: Lobbyist Consultant Services Agreement - Recommend MOTION: Recommend council authorize the Mayor to sign a consultant services agreement with Gordon Thomas Honeywell Government Affairs, subject to final terms and conditions acceptable to the Chief Administrative Officer and City Attorney. SUMMARY: After 19 years of distinguished service to the City of Kent, Doug Levy of Outcomes by Levy ended his contract for state legislative lobbying services at the end of April. Following discussions with Levy and consultation with members of Kent’s legislative delegation, the Mayor’s Office recommends Briahna Murray of the Tacoma firm Gordon Thomas Honeywell Government Affairs as the city’s new contract lobbyist. Murray currently represents the cities of Tacoma and Bellevue as well as several smaller cities, including nearby Covington and SeaTac. She uses a team approach in which she is the lead for most of her larger clients’ issues (to include Kent’s issues) and her staff is the lead for most of her smaller clients’ issues. The Chief Administrative Officer entered into a short-term contract for May and June to ensure no gap in services while the city works on time-sensitive issues like streamlined sales tax mitigation and State Route 509 funding. The attached draft contract is for July 2018 through December 2019. It is nearly identical in scope to the contract with Outcomes by Levy and has the same annual fee. BUDGET IMPACT: $72,000 per year SUPPORTS STRATEGIC PLAN GOAL: Innovation Government, Authentic Connectivity and Communication, Thriving Neighborhoods and Urban Centers, Sustainable Funding, Inclusive Community ATTACHMENTS: 1. Lobbyist Consultant Services_Agreement (PDF) 7 Packet Pg. 8 CONSULTANT SERVICES AGREEMENT - 1 (Over $20,000) CONSULTANT SERVICES AGREEMENT between the City of Kent and Gordon Thomas Honeywell Government Affairs LLC THIS AGREEMENT is made between the City of Kent, a Washington municipal corporation (hereinafter the "City"), and Gordon Thomas Honeywell Government Affairs LLC organized under the laws of the State of Washington, located and doing business at 1201 Pacific Ave. #2100, Tacoma, WA 98402, (253) 620-6474 (hereinafter the "Consultant"). I. DESCRIPTION OF WORK. Consultant shall perform the following services for the City in accordance with the following described plans and/or specifications: Scope of Work: The following outlines the scope of work under this Agreement. Specific work plans shall be developed mutually and reviewed on a regular basis. • Assist with issue identification and legislative agenda development through internal meetings with Department heads and senior staff, and Kent-area legislative delegation contacts prior to each Legislative Session. • Continue to monitor and identify problems and opportunities for Kent with issues under consideration by the State Legislature and state agencies, including transportation, fiscal resources, infrastructure needs, flood control and levee issues, and environmental matters. • Monitor and report legislation of concern to Kent during Legislative Sessions, working with the Mayor’s Office to provide regular status reports and to advocate for Kent on relevant issues. • Assist city staff in developing fallback and compromise positions when appropriate. • Assist with pursuit of funding for Kent projects, particularly through the state budgets. • If requested by the city, assist Kent on regional issues that intersect with the city’s state legislative issues. • If requested by the City, inquire into federal issues that impact the City of Kent. However, GTHGA would not be expected to register as lobbying for the City at the federal level. • If requested by the city, assist Kent in working through issues and problems with state regulatory issues. Reporting and Communication: The Consultant shall communicate with designated staff regarding work under this Agreement. During the legislative session, the consultant shall provide a weekly legislative report, and at other times through the legislative interim as necessary. Consultant further represents that the services furnished under this Agreement will be performed in accordance with generally accepted professional practices within the Puget Sound region in effect at the time those services are performed. 7.a Packet Pg. 9 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) CONSULTANT SERVICES AGREEMENT - 2 (Over $20,000) II. TIME OF COMPLETION. The parties agree that work will begin on the tasks described in Section I above immediately upon the effective date of this Agreement. Consultant shall complete the work described in Section I on December 31, 2019. III. COMPENSATION. A. The City shall pay the Consultant, based on time and materials, an amount not to exceed $108,000, plus applicable Washington State sales tax, for the services described in this Agreement. This is the maximum amount to be paid under this Agreement for the work described in Section I above, and shall not be exceeded without the prior written authorization of the City in the form of a negotiated and executed amendment to this agreement. The Consultant agrees that the hourly or flat rate charged by it for its services contracted for herein shall remain locked at the negotiated rate(s) for a period of one (1) year from the effective date of this Agreement. The Consultant's billing rates shall be as delineated in Exhibit A. B. The Consultant shall submit monthly payment invoices to the City for work performed, and a final bill upon completion of all services described in this Agreement. The City shall provide payment within forty-five (45) days of receipt of an invoice. If the City objects to all or any portion of an invoice, it shall notify the Consultant and reserves the option to only pay that portion of the invoice not in dispute. In that event, the parties will immediately make every effort to settle the disputed portion. IV. INDEPENDENT CONTRACTOR. The parties intend that an Independent Contractor- Employer Relationship will be created by this Agreement. By their execution of this Agreement, and in accordance with Ch. 51.08 RCW, the parties make the following representations: A. The Consultant has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. B. The Consultant maintains and pays for its own place of business from which Consultant’s services under this Agreement will be performed. C. The Consultant has an established and independent business that is eligible for a business deduction for federal income tax purposes that existed before the City retained Consultant’s services, or the Consultant is engaged in an independently established trade, occupation, profession, or business of the same nature as that involved under this Agreement. D. The Consultant is responsible for filing as they become due all necessary tax documents with appropriate federal and state agencies, including the Internal Revenue Service and the state Department of Revenue. E. The Consultant has registered its business and established an account with the state Department of Revenue and other state agencies as may be required by Consultant’s business, and has obtained a Unified Business Identifier (UBI) number from the State of Washington. F. The Consultant maintains a set of books dedicated to the expenses and earnings of its business. V. TERMINATION. Either party may terminate this Agreement, with or without cause, upon providing the other party thirty (30) days written notice at its address set forth on the signature block of this Agreement. After termination, the City may take possession of all records and data within the Consultant’s possession pertaining to this project, which may be used by the City without restriction. If the City’s use of Consultant’s records or data is not related to this project, it shall be without liability or legal exposure to the Consultant. 7.a Packet Pg. 10 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) CONSULTANT SERVICES AGREEMENT - 3 (Over $20,000) VI. DISCRIMINATION. In the hiring of employees for the performance of work under this Agreement or any subcontract, the Consultant, its subcontractors, or any person acting on behalf of the Consultant or subcontractor shall not, by reason of race, religion, color, sex, age, sexual orientation, national origin, or the presence of any sensory, mental, or physical disability, discriminate against any person who is qualified and available to perform the work to which the employment relates. Consultant shall execute the attached City of Kent Equal Employment Opportunity Policy Declaration, Comply with City Administrative Policy 1.2, and upon completion of the contract work, file the attached Compliance Statement. VII. INDEMNIFICATION. Consultant shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Consultant's performance of this Agreement, except for that portion of the injuries and damages caused by the City's negligence. The City's inspection or acceptance of any of Consultant's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, agents and volunteers, the Consultant's duty to defend, indemnify, and hold the City harmless, and Consultant’s liability accruing from that obligation shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event Consultant refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Consultant’s part, then Consultant shall pay all the City’s costs for defense, including all reasonable expert witness fees and reasonable attorneys’ fees, plus the City’s legal costs and fees incurred because there was a wrongful refusal on the Consultant’s part. The provisions of this section shall survive the expiration or termination of this Agreement. VIII. INSURANCE. The Consultant shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in Exhibit B attached and incorporated by this reference. IX. EXCHANGE OF INFORMATION. The City will provide its best efforts to provide reasonable accuracy of any information supplied by it to Consultant for the purpose of completion of the work under this Agreement. X. OWNERSHIP AND USE OF RECORDS AND DOCUMENTS. Original documents, drawings, designs, reports, or any other records developed or created under this Agreement shall belong to and become the property of the City. All records submitted by the City to the Consultant will be safeguarded by the Consultant. Consultant shall make such data, documents, and files available to the City upon the City’s request. The Consultant acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington. As such, the Consultant agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act. The City’s use or reuse of any of the documents, data, and files created by Consultant for this project by anyone other than Consultant on any other project shall be without liability or legal exposure to Consultant. 7.a Packet Pg. 11 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) CONSULTANT SERVICES AGREEMENT - 4 (Over $20,000) XI. CITY'S RIGHT OF INSPECTION. Even though Consultant is an independent contractor with the authority to control and direct the performance and details of the work authorized under this Agreement, the work must meet the approval of the City and shall be subject to the City's general right of inspection to secure satisfactory completion. XII. WORK PERFORMED AT CONSULTANT'S RISK. Consultant shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. All work shall be done at Consultant's own risk, and Consultant shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. XIII. MISCELLANEOUS PROVISIONS. A. Recyclable Materials. Pursuant to Chapter 3.80 of the Kent City Code, the City requires its contractors and consultants to use recycled and recyclable products whenever practicable. A price preference may be available for any designated recycled product. B. Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. C. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties’ performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the City's right to indemnification under Section VII of this Agreement. D. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. E. Assignment. Any assignment of this Agreement by either party without the written consent of the non-assigning party shall be void. If the non-assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. F. Modification. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Consultant. G. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement. However, should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, the terms of this Agreement shall prevail. H. Compliance with Laws. The Consultant agrees to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to 7.a Packet Pg. 12 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) CONSULTANT SERVICES AGREEMENT - 5 (Over $20,000) Consultant's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. I. Public Records Act. The Consultant acknowledges that the City is a public agency subject to the Public Records Act codified in Chapter 42.56 of the Revised Code of Washington and documents, notes, emails, and other records prepared or gathered by the Consultant in its performance of this Agreement may be subject to public review and disclosure, even if those records are not produced to or possessed by the City of Kent. As such, the Consultant agrees to cooperate fully with the City in satisfying the City’s duties and obligations under the Public Records Act. J. City Business License Required. Prior to commencing the tasks described in Section I, Contractor agrees to provide proof of a current city of Kent business license pursuant to Chapter 5.01 of the Kent City Code. K. Counterparts and Signatures by Fax or Email. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. Further, upon executing this Agreement, either party may deliver the signature page to the other by fax or email and that signature shall have the same force and effect as if the Agreement bearing the original signature was received in person. IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. All acts consistent with the authority of this Agreement and prior to its effective date are ratified and affirmed, and the terms of the Agreement shall be deemed to have applied. CONSULTANT: By: (signature) Print Name: Its (title) DATE: CITY OF KENT: By: (signature) Print Name: Dana Ralph Its Mayor DATE: NOTICES TO BE SENT TO: CONSULTANT: Briahna Murray, Vice President Gordon Thomas Honeywell Government Affairs 1201 Pacific Ave. #2100 Tacoma, WA 98402 (253) 620-6474 (telephone) [Insert Fax Number] (facsimile) NOTICES TO BE SENT TO: CITY OF KENT: Derek Matheson, Chief Administrative Officer City of Kent 220 Fourth Avenue South Kent, WA 98032 (253) 856-5700 (telephone) (253) 856-6700 (facsimile) APPROVED AS TO FORM: Kent Law Department ATTEST: Kent City Clerk P:\Consultants\Lobbyist\Briahna-Gordon Thomas Honeywell/ConsultantServicesAgreement-Over20K 7.a Packet Pg. 13 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) EXHIBIT A BILLING RATES $6,000 per month. In addition, the City shall reimburse the Consultant for expenses incurred while doing business on the City’s behalf, which shall be limited to communication expenses (i.e. cell phone), mileage at the State of Washington’s standard reimbursement rate, and other travel and conference/meeting expenses where such attendance is directed by the City. Where such expenses are incurred in connection with work on legislative or regulatory issues affecting the Contractor’s other relevant clients, these expenses shall be pro-rated to the maximum extent practicable. 7.a Packet Pg. 14 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) EXHIBIT B INSURANCE REQUIREMENTS No insurance is required. 7.a Packet Pg. 15 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) EEO COMPLIANCE DOCUMENTS - 1 DECLARATION CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY POLICY The City of Kent is committed to conform to Federal and State laws regarding equal opportunity. As such all contractors, subcontractors and suppliers who perform work with relation to this Agreement shall comply with the regulations of the City’s equal employment opportunity policies. The following questions specifically identify the requirements the City deems necessary for any contractor, subcontractor or supplier on this specific Agreement to adhere to. An affirmative response is required on all of the following questions for this Agreement to be valid and binding. If any contractor, subcontractor or supplier willfully misrepresents themselves with regard to the directives outlines, it will be considered a breach of contract and it will be at the City’s sole determination regarding suspension or termination for all or part of the Agreement; The questions are as follows: 1. I have read the attached City of Kent administrative policy number 1.2. 2. During the time of this Agreement I will not discriminate in employment on the basis of sex, race, color, national origin, age, or the presence of all sensory, mental or physical disability. 3. During the time of this Agreement the prime contractor will provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 4. During the time of the Agreement I, the prime contractor, will actively consider hiring and promotion of women and minorities. 5. Before acceptance of this Agreement, an adherence statement will be signed by me, the Prime Contractor, that the Prime Contractor complied with the requirements as set forth above. By signing below, I agree to fulfill the five requirements referenced above. By: ___________________________________________ For: __________________________________________ Title: _________________________________________ Date: _________________________________________ 7.a Packet Pg. 16 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) EEO COMPLIANCE DOCUMENTS - 2 CITY OF KENT ADMINISTRATIVE POLICY NUMBER: 1.2 EFFECTIVE DATE: January 1, 1998 SUBJECT: MINORITY AND WOMEN SUPERSEDES: April 1, 1996 CONTRACTORS APPROVED BY Jim White, Mayor POLICY: Equal employment opportunity requirements for the City of Kent will conform to federal and state laws. All contractors, subcontractors, consultants and suppliers of the City must guarantee equal employment opportunity within their organization and, if holding Agreements with the City amounting to $10,000 or more within any given year, must take the following affirmative steps: 1. Provide a written statement to all new employees and subcontractors indicating commitment as an equal opportunity employer. 2. Actively consider for promotion and advancement available minorities and women. Any contractor, subcontractor, consultant or supplier who willfully disregards the City’s nondiscrimination and equal opportunity requirements shall be considered in breach of contract and subject to suspension or termination for all or part of the Agreement. Contract Compliance Officers will be appointed by the Directors of Planning, Parks, and Public Works Departments to assume the following duties for their respective departments. 1. Ensuring that contractors, subcontractors, consultants, and suppliers subject to these regulations are familiar with the regulations and the City’s equal employment opportunity policy. 2. Monitoring to assure adherence to federal, state and local laws, policies and guidelines. 7.a Packet Pg. 17 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) EEO COMPLIANCE DOCUMENTS - 3 CITY OF KENT EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE STATEMENT This form shall be filled out AFTER COMPLETION of this project by the Contractor awarded the Agreement. I, the undersigned, a duly represented agent of Company, hereby acknowledge and declare that the before-mentioned company was the prime contractor for the Agreement known as that was entered into on the (date), between the firm I represent and the City of Kent. I declare that I complied fully with all of the requirements and obligations as outlined in the City of Kent Administrative Policy 1.2 and the Declaration City of Kent Equal Employment Opportunity Policy that was part of the before-mentioned Agreement. By: ___________________________________________ For: __________________________________________ Title: _________________________________________ Date: _________________________________________ 7.a Packet Pg. 18 At t a c h m e n t : L o b b y i s t C o n s u l t a n t S e r v i c e s _ A g r e e m e n t ( 1 2 2 6 : L o b b y i s t C o n s u l t a n t S e r v i c e s A g r e e m e n t - R e c o m m e n d ) OFFICE OF THE CITY ATTORNEY Pat Fitzpatrick, City Attorney 220 Fourth Avenue South Kent, WA 98032 253-856-5770 DATE: May 15, 2018 TO: Operations Committee SUBJECT: Update Purchasing and Contracting Code Provisions – Ordinance MOTION: Recommend Council adopt an ordinance that creates a competitive bid exception for technology contracts, clarifies authority concerning contract amendments, removes reporting requirements for some contracts and leases, and makes other minor housekeeping revisions. SUMMARY: This proposed ordinance seeks to make four primary revisions to the City’s current contracting code provisions: 1. Technology Exception. Creates an exception to the competitive bid requirement for technology contracts. Currently, technology contracts are subject to the same competitive bid requirements that apply to other purchases. However, technology must integrate with the City’s existing operating system and programs. Often times, a particular product from a particular manufacturer is needed or preferred—the purchase is simply not interchangeable. While technology purchases will be exempt from competitive bidding, staff will still be required to use reasonable efforts to obtain the best price available under the circumstances, and the resulting contract must be approved by Council if it is over $65,000. 2. Contract Amendments. Existing code grants director authority on all change orders that are individually less than $20,000 and cumulatively no more than 10% of the original contract amount. In application, this threshold is low for small contracts ($500 on a $5,000 contract), but high on larger contracts ($300,000 on a $3 million contract). If funds exist within the budget to cover the contract amendment, this ordinance would seek to level the authority uniformly for all contracts: Director: Contract ≤ $1.5 Million Greater Of: • Individually $20,000 or less; OR • Collectively ≤ 10% of contract amount (collective cap of $150,000) 8 Packet Pg. 19 Contract > $1.5 Million Collectively ≤ 10% of original contract amount (individual CO cap of $150,000; collective CO cap may exceed $150,000 if within 10% of original contract amount). Mayor: Collectively within 20% of original contract amount 3. Reporting Requirement. Removes the current reporting requirement to Council of contracts greater than $25,000, and leases valued at $25,000 or less, that are signed by the Mayor and within the authority granted by Council through Chapter 3.70 KCC. 4. Housing-keeping Changes. (a) Clarifies piggybacking and purchasing cooperatives; (b) addresses signing authority for amendments to union agreements. BUDGET IMPACT: None SUPPORTS STRATEGIC PLAN GOAL: Innovation Government, Authentic Connectivity and Communication ATTACHMENTS: 1. 3.70-TechException_ChangeOrders_CBAs-04-18-2018_DRAFT (PDF) 8 Packet Pg. 20      1 Amend Ch. 3.70 KCC Re: Procurement and Contracting ORDINANCE NO. AN ORDINANCE of the City Council of the City of Kent, Washington, amending Chapter 3.70 of the Kent City Code, entitled “Public Contracting and Procurement,” to: (1) create a competitive bid exception for technology contracts; (2) clarify authority concerning contract change orders and amendments; (3) remove reporting requirements for some contracts and leases; and (4) make other minor housekeeping amendments. RECITALS A. In 2015, the City revised its code provisions concerning competitive bidding and contract approval. In the years that have since passed, it was discovered that several provisions could benefit from clarification, particularly those concerning contract change orders and amendments. In an effort to bring equity between small dollar and multi- million dollar contracts, this ordinance clarifies the authority Council has delegated to department directors and the Mayor when a contract change order or amendment is required. B. It is also appropriate to exempt technology purchases from current competitive bid requirements, including purchases of hardware, software, maintenance, and associated technical support, training, and licensing. When technology purchases are made, the City’s focus in on finding a product that best meets the City’s needs and can be implemented in the existing technological ecosystem and interface with existing programs and systems. Often times, a particular product from a 8.a Packet Pg. 21 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      2 Amend Ch. 3.70 KCC Re: Procurement and Contracting particular manufacturer is needed or preferred—the purchase is simply not interchangeable as it is for purchases of office supplies or furniture. While technology purchases will be exempt from competitive bidding, staff will still be required to use reasonable efforts to obtain the best price available under the circumstances. In addition, these technological purchases will still be subject to the exiting contract approval process, which requires Council approval of all contracts greater than $65,000. C. The 2015 ordinance also established two reporting requirements that required City Administration to report to Council, on a quarterly basis, all contracts the Mayor entered into that were greater than $25,000, or real property leases that were valued at $25,000 or less. Having made these reports over the past 3 years, it has been determined that the benefit the reports conferred on Council was not worth the effort expended by staff to create them. For that reason, this ordinance removes these reporting requirements. D. Finally, other housekeeping amendments were made to clarify and more clearly distinguish between when the City is making a purchase through a purchasing cooperative and when the City is piggybacking on another agency’s competitive bid process to satisfy the City’s local competitive bid process. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE SECTION 1. – Amendment – KCC 3.70.110. Section 3.70.110 of the Kent City Code, entitled “Exceptions to competitive bidding requirements,” is amended as follows: 8.a Packet Pg. 22 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      3 Amend Ch. 3.70 KCC Re: Procurement and Contracting Sec. 3.70.110. Exceptions to competitive bidding requirements. The competitive bidding requirements set forth in KCC 3.70.080 and 3.70.090 shall not apply to those instances set forth in this section. Nothing in this section can act to waive the authorization requirements established in Part 4 of this chapter, KCC 3.70.210 through 3.70.240. A. Waiver for purchases. The mayor may waive the bidding requirements for the purchase of goods, materials, equipment, or services that are not part of a public work upon a finding that: 1. The purchase is clearly and legitimately limited to a single source of supply within the near vicinity; or 2. The purchase is subject to special market conditions, or involves special facilities or services; or 3. The bidding requirements would otherwise not be practicable or in the city’s best interests under the circumstances. If a waiver is appropriate, the director shall prepare a memo to the mayor outlining the reasons for the requested waiver. If the mayor authorizes the waiver, the purchase may be completed by direct negotiation. The document evidencing the waiver granted by the mayor shall be maintained with the contract on file with the city clerk’s office in accordance with KCC 3.70.050. B. Waiver in emergency. When any emergency, including a public work emergency, requires the immediate execution of any contract, or authorization of any purchase, work, or change order or amendment to an existing contract, the mayor shall have the power to waive competitive bidding requirements and award all contracts necessary to address the emergency situation. 1. Emergency defined. An emergency, as that term is used in this section, shall have the same meaning as provided in RCW 39.04.280(3), as the same may be later amended. 8.a Packet Pg. 23 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      4 Amend Ch. 3.70 KCC Re: Procurement and Contracting 2. Emergency declared. If the competitive bidding requirements of this chapter are waived due to an emergency, the mayor shall issue a written finding of the existence of an emergency. This written finding, along with the resulting contract, shall be on file with the city clerk’s office and available for public inspection no later than two (2) weeks after the contract is awarded. If an emergency procurement or contract exceeds sixty-five thousand dollars ($65,000), the city council shall be subsequently notified, but formal council ratification is not required. C. Professional and technical consultant contracts. Contracts entered into with professional or technical service consultants are not required to follow the competitive bidding requirements provided for in KCC 3.70.080, but may be entered into through direct negotiations. In contracting with professional or technical service consultants, it is incumbent on staff to seek the best price available under the circumstances, acting not only under existing market conditions, but also as a cautious steward of city resources. The following is a nonexclusive list of the type of professional or technical service consultants to which this subsection is intended to apply: 1. Licensed consultants. Consultants whose practice is certified or licensed by the state Department of Licensing, other state board, or similar agency, including, without limitation, real estate appraisers and brokers, attorneys, and accountants. This exception, however, does not apply to consultants who perform architectural, engineering, and land surveying services, which are subject to the provisions of KCC 3.70.070. 2. Health care and investment contracts. Contracts entered into by the city to provide employee health care insurance coverage, or to provide employee investment services. 3. Administration services for liability claims and workers’ compensation claims. Contracts entered into by the city for insurance brokerage services, third-party administrator services for liability claims, and third-party administrator services for workers’ compensation claims. 8.a Packet Pg. 24 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      5 Amend Ch. 3.70 KCC Re: Procurement and Contracting 4. Professional training and employee recruitment. Contracts entered into by the city to provide professional development or other training to city employees, volunteers, or elected officials, or to recruit for high level or specialized employee positions. D. Technology contracts. In consultation with the City’s technology department, purchases of hardware, software, maintenance, and associated technical support, training, and licensing, may be made without regard to the bidding requirements provided for in KCC 3.70.080 and KCC 3.70.090 and may be entered into through direct negotiations. However, staff shall make reasonable efforts to obtain the best price available under the circumstances. ED. Cultural performances, events, and public art. The performers and artists selected by the cultural programs division of the city’s parks, recreation, and human services department to perform at various events, to create public art for the city, or the contractors and vendors hired to provide services and equipment related to those performances, events, and art are solicited based on artistic quality, balance of genres, prominence, marketability, technical requirements, and ability to coordinate those events with minimum city staff involvement. Given the unique nature of these performers and artists and the need for multiple individuals and contractors to work together to successfully coordinate and conduct each performance or event, contracts to retain performance or artistic services or to conduct a performance or other cultural event, including without limitation support services provided by sound technicians, caterers, or other similar trades, are not required to follow the competitive bidding requirements provided for in KCC 3.70.080, but may be entered into through direct negotiations with the city. FE. Interlocal agreements or cooperative purchase agreements. The bidding procedures for purchases established under this chapter need not apply to interlocal agreements or cooperative purchase agreements with 8.a Packet Pg. 25 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      6 Amend Ch. 3.70 KCC Re: Procurement and Contracting another public agency or agencies for joint or cooperative action. Interlocal agreements should, however, include the minimum standards provided for in Chapter 39.34 RCW. While this exception waives any competitive bid process, the interlocal agreement or cooperative purchase agreement must still be authorized in accordance with Part 4 of this chapter, unless the city attorney is consulted and advises otherwise. GF. Use of another public agency’s bidding procedures. The competitive bidding procedures established in this chapter shall not apply to purchases made from a contractor or vendor who was awarded a contract using another public agency’s established procurement process for substantially the same purchase. The city’s reliance on the other public agency’s process shall constitute compliance with the bid requirements of this chapter. 1. Public works exclusion. Another public agency’s bidding process cannot be relied upon for public works projects above the bid threshold provided in KCC 3.70.090(B), including goods, materials, or equipment procured for inclusion in a public work. 2. Interlocal agreement recommended. The city and the public agency upon whose bid the city intends to rely should enter into an interlocal agreement that allows the city to piggyback or buy off of the other public agency’s awarded contract. 23. Contract and authorization required. Once any competitive bid process is satisfied under this section, a contract between the city and the awarded contractor or vendor is required and must be authorized in accordance with Part 4 of this chapter, unless the city attorney is consulted and advises otherwise. HG. Delegated purchasing authority. 1. Purchases. Purchases made by a third party under purchasing authority delegated to it through a contract approved by the city council are not required to follow the competitive bidding requirements provided for in KCC 3.70.080. As an example, this waiver would apply to an 8.a Packet Pg. 26 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      7 Amend Ch. 3.70 KCC Re: Procurement and Contracting operator the city has entered into a contract with to operate and maintain a public facility. Under this waiver, if the operator’s contract provided the operator was to purchase all paper or catering supplies, that purchase would not be subject to the competitive bid process set forth in KCC 3.70.080. 2. Kent Special Events Center (ShoWare Center). Management and operation of the ShoWare Center is unique to city operations. Efficient management requires flexibility to move quickly to respond to market requirements for concerts, sporting events, and other offerings. The ShoWare Center operator, a national company that operates similar venues throughout the United States, also has access to special pricing and conditions that otherwise might not be available if the city operated as a stand-alone enterprise. Based on this unique venue and with the continuing obligation that the operator always obtain the best available pricing on all purchases of goods or services, the ShoWare Center operator is authorized to purchase goods or services as needed so long as the operator does not exceed the established budget and so long as purchases over twenty-five thousand dollars ($25,000) are first approved by the chief administrative officer or his or her designee. In addition to any contract obligation, the operator will also provide the mayor and council with a monthly audit report documenting financial activities at the ShoWare Center. 3. Public works. While council may delegate in a contract the authority for a third party to procure a public work, the third party shall comply with any required competitive bid process applicable to the city for the public work. IH. Pass-through grant agreements. Contracts the city enters into with community-based social and human service providers, including subrecipients of grant funds received from the Community Development and Block Grant (CDBG) Program, are not required to follow the competitive bidding requirements provided for in KCC 3.70.080 for 8.a Packet Pg. 27 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      8 Amend Ch. 3.70 KCC Re: Procurement and Contracting purchases, but may be entered into through direct negotiations with the city, or in accordance with any competitive process required under federal or state law as a condition of the grant. JI. Pass-through fee contracts – No financial impact to city. Service contracts entered into at no or a nominal cost to the city, but result in any associated fee or charge being passed through to a party other than the city, including but not limited to an agreement with a collection company, need not comply with the competitive bidding requirements provided for in KCC 3.70.080 and may be entered into through direct negotiations with the city. KJ. Community service organizations. The city may enter into contracts with community service organizations without regard to the bidding requirements provided for in KCC 3.70.080. If the community service organization will perform a public work or improvement project, the value of the community service organization’s contribution will not be included within the public work’s bidding threshold under KCC 3.70.090 only if the requirements of RCW 35.21.278, as the same may be later amended, are met, including: 1. The organization is a chamber of commerce; a service organization; a community, youth, or athletic association; or other similar association located and providing service in the immediate neighborhood; 2. The work the organization will perform involves drawing design plans, making improvements to a park or public square, installing equipment or artwork, or providing facility maintenance services as a community or neighborhood project; 3. The value of the benefit the city receives from the public work or improvement is at least equal to three (3) times that of the city’s payment to the organization to reimburse the organization for its expenses; and 4. All payments made by the city to qualifying service organizations in any one (1) year under this competitive bid exception 8.a Packet Pg. 28 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      9 Amend Ch. 3.70 KCC Re: Procurement and Contracting does not exceed two dollars ($2) per resident or twenty-five thousand dollars ($25,000), whichever amount is greater. LK. Auctions. The city may purchase supplies, equipment, or materials at auctions conducted by the United States government or any of its agencies, or by the state of Washington and any of its political subdivisions, without being subject to the bidding requirements of this chapter. ML. Recycled products. Nothing in this chapter shall prohibit the city from preferentially purchasing products made from recycled materials or products that may be recycled or reused, pursuant to Chapter 3.80 KCC or Chapter 43.19A RCW. SECTION 2. – Amendment – KCC 3.70.210. Section 3.70.210 of the Kent City Code, entitled “Contract required and approval necessary,” is amended as follows: Sec. 3.70.210. Contract required and approval necessary. After complying with the competitive bidding process provided for within Part 2 or Part 3 of this chapter, all work or any purchase authorized with a particular vendor, consultant, or contractor that cumulatively is expected on a particular project to exceed an annual amount of twenty thousand dollars ($20,000) must be in writing, and approved according to the authority provided for within this Part 4. The thresholds provided in this section are to be evaluated based upon the total cost of the purchase or work, including applicable sales tax. A. Contract log. The city clerk will maintain a log of all new contracts executed by the city and delivered to the city clerk’s office in accordance with KCC 3.70.050. Each department must confirm that all contracts are routed to the city clerk’s office. The operator of the Kent Special Events Center (ShoWare Center) will also maintain a record of all contracts 8.a Packet Pg. 29 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      10 Amend Ch. 3.70 KCC Re: Procurement and Contracting entered into over twenty-five thousand dollars ($25,000) and report those contracts to the city clerk. The city clerk will provide a quarterly report of all new contracts executed by the city during the prior quarter that are greater than twenty-five thousand dollars ($25,000) and not previously approved by council. B. Exception to contract requirement. If sufficient funds exist in the approved budget, a written contract may not be required if: (1) another agency’s bid process was relied upon as authorized under KCC 3.70.110(F); (2) contracts bid or negotiated by another agency allow the city to receive under that contract on substantially the same terms; and (3) the city attorney has determined the contract between the bidding agency and the awarded contractor or vendor sufficiently protects the interests of the city. SECTION 3. – Amendment – KCC 3.70.220. Section 3.70.220 of the Kent City Code, entitled “Director approval,” is amended as follows: Sec. 3.70.220 Director Approval. Directors may approve work or purchases, and have signatory authority to execute any requisite contract, for the following: A. Contracts – $20,000 or less. All purchases or work authorized by a director and valued at $20,000 or less should be memorialized in a written contract. Any contract or procurement in the amount of $20,000 or less, which can be paid from the originating department’s existing annual budget, may be approved and signed by the director. B. Change orders or contract amendments. The director is authorized to approve and sign the following contract change orders or amendments: 1. Change orders or contract amendments that involve only an extension of time for the contractor to perform. 2. For contracts with an original contract amount of $1,500,000 or less, Individual change orders or contract amendments that individually 8.a Packet Pg. 30 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      11 Amend Ch. 3.70 KCC Re: Procurement and Contracting are not do not exceed the original contract amount by more than $20,000, or cumulatively are within 10 percent or $65,000 of collectively are not the original contract amountmore than ten percent of the original contract amount, whichever amount is greater. 3. For contracts with an original contract amount greater than $1,500,000, change orders or contract amendments that collectively do not exceed the original contract amount by more than ten percent. If, however, any individual change order exceeds $150,000, the director’s change order authority is limited to $150,000,. whichever amount is greater, if: This change order approval authority may only be exercised if sufficient funds remain in the approved project or department budget to pay the change order or amendment amount. C. Grant applications, award agreements, bequests, donations, or other gifts – $25,000 or less. The director may approve and sign all grant applications, unless the application itself requires otherwise. The director may also accept any grant, bequest, donation, or other gift in the total amount of $25,000 or less, and is authorized to approve and sign all documents necessary to receive the grant, bequest, donation, or other gift. In determining the total grant, bequest, donation, or gift amount for application of this section, the cost of any matching funds and the cost of fulfilling all conditions placed on the city’s acceptance of the grant, bequest, donation, or gift must be included in the calculation. In order for the director to have the authority granted by this section, any matching funds required to obtain the grant, bequest, donation, or gift must be available within the director’s existing budget. Upon the city’s receipt of the grant, bequest, donation, or gift funds in the total amount of $25,000 or less, the finance director is authorized to amend the department director’s budget and authorize expenditure of the funds. The finance director may then include these funds in the budget adjustment ordinance. 8.a Packet Pg. 31 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      12 Amend Ch. 3.70 KCC Re: Procurement and Contracting 1. Grant reimbursement requests. Once a grant agreement is approved as provided for in this chapter, the director or designee is authorized to sign any grant reimbursement request or voucher, annual or final fiscal report, or any certification statement that may be required by the federal, state, or other local agency awarding or administering the grant. This delegation of authority specifically includes without limitation the certification required by 2 CFR 200.415, as currently enacted or hereafter amended or recodified. D. Collective bargaining agreements. Unless the terms of a collective bargaining agreement provide otherwise, the director of Human Resources or the director’s designee is authorized to sign all agreements, or subsequent amendments to those agreements, with the City’s bargaining units if the financial impact of the agreement or amendment is valued at $65,000 or less, and sufficient funds remain in the budget to cover that financial impact. SECTION 4. – Amendment – KCC 3.70.230. Section 3.70.230 of the Kent City Code, entitled “Mayor Approval,” is amended as follows: Sec. 3.70.230. Mayor Approval. The mayor has signatory authority and may approve the following: A. Contracts – Over $20,000. All purchases or work valued at an amount in excess of $20,000 must be memorialized in a written contract and signed by the mayor. Any contract valued at an amount of $65,000 or less may be signed by the mayor without city council approval if funds are available within the existing budget to pay the associated contract costs. B. Change orders or contract amendments. The mayor is authorized to approve and sign: (1) individual change orders or contract amendments that do not exceed the original contract amount by more than $65,000, and (2) cumulativelycollectively are within 20 percent or $130,000 of the 8.a Packet Pg. 32 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      13 Amend Ch. 3.70 KCC Re: Procurement and Contracting original contract amount , whichever amount is greater, if sufficient funds remain within the existing project budget. C. Grant acceptance, award agreements, bequests, donations, or other gifts. The mayor is authorized to approve and sign any application requesting grant funds for various city purposes if the grant application requires. The mayor may also accept any grant, bequest, donation, or other gift in the amount of $65,000 or less, and is authorized to sign all documents necessary to receive the grant, bequest, donation, or other gift. In determining the total grant, bequest, donation, or gift amount for application of this section, the cost of any matching funds and the cost of fulfilling all conditions placed on the city’s acceptance of the grant, bequest, donation, or gift must be included in the calculation. In order for the mayor to have the authority granted by this section, any matching funds required to obtain the grant, bequest, donation, or gift must be available within the existing budget. Upon the city’s receipt of the grant, bequest, donation, or other gift funds as provided in this section, the finance director is authorized to amend the budget and authorize expenditure of the funds. The finance director may then include these funds in the budget adjustment ordinance. All reimbursement requests, vouchers, reports, or certification statements are to be signed by the director or designee in accordance with KCC 3.70.220(C)(1). D. Interlocal agreements. The mayor may approve and sign any agreement between the city and another public agency, including those entered into under the Interlocal Cooperation Act, Chapter 39.34 RCW, without council approval, so long as any money that may be paid or received by the city under the terms of the agreement, or any resources dedicated by the city to the cooperative effort, does not exceed $65,000, and any payment or dedicated resource obligation under the agreement may be paid through the existing budget. 8.a Packet Pg. 33 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      14 Amend Ch. 3.70 KCC Re: Procurement and Contracting E. Real property interests. The mayor is specifically authorized to do the following: 1. To acquire and convey rights-of-way and other property interests by lease or purchase when the city council has dedicated sufficient funds for the lease or purchase within the existing annual budget or project budget. 2. To enter into any lease or other agreement conveying an interest in real property where the total annual amount paid or received under the agreement, or the total annual fair market value of the real property interest conferred, is $25,000 or less. However, no authority delegated under this section shall authorize approval of a lease or other agreement conveying an interest in real property for a term greater than two years, including all options to renew, without express approval of the city council. The mayor, chief administrative officer, or appropriate department director will report to the applicable council committee or to the full council, at least quarterly, a record of any lease or other agreement entered into pursuant to this subsection. 3. To accept land, appurtenances, and other real property interests that are dedicated to the city as a condition of a private developer’s development permit or regulatory approval, or to release the same as part of such development approval, subject to prior review and approval by the city attorney. F. Surplus. Except for real property, or utility equipment and property as provided for in RCW 35.94.040, as the same may be later amended, or property that is sold to another governmental entity that is valued over $50,000 as provided for in RCW 39.33.020, as the same may be later amended, the mayor, upon a director’s recommendation, is authorized to surplus equipment or property the mayor determines is surplus to the city’s needs, and the mayor may sell or otherwise dispose of such surplused equipment or property for fair market value or as otherwise allowed by law. 8.a Packet Pg. 34 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      15 Amend Ch. 3.70 KCC Re: Procurement and Contracting G. Pass-through fee contracts. Service contracts entered into at no or a nominal cost to the city, but that result in any associated fee or charge being passed through to a party other than the city, such as an agreement with a collection company, may be approved and signed by the mayor, subject to prior review by the city attorney. H. Emergency. If an emergency exists as provided for in KCC 3.70.110(B), the mayor may sign all documents and take all actions necessary to address the emergency. If council approval would have been required by KCC 3.70.240, the city council shall be subsequently notified, but formal ratification is not required. I. Collective bargaining agreements. Unless the terms of a collective bargaining agreement provide otherwise, the Mayor is authorized to sign all agreements, or subsequent amendments to those agreements, with the City’s bargaining units if the financial impact of the agreement or amendment is valued at $130,000 or less, and sufficient funds remain in the City’s budget to cover that financial impact. If the financial impact is greater than $130,000, or if sufficient funds do not exist within the budget to cover the financial impact, Council authorization must first be obtained before the Mayor is authorized to sign the agreement or amendment. SECTION 5. – Corrections by City Clerk or Code Reviser. Upon approval of the city attorney, the city clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. / / / / / / 8.a Packet Pg. 35 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –      16 Amend Ch. 3.70 KCC Re: Procurement and Contracting SECTION 6. – Effective Date. This ordinance shall take effect and be in force thirty days from and after its passage as provided by law. DANA RALPH, MAYOR Date Approved ATTEST: KIMBERLY A. KOMOTO, CITY CLERK Date Adopted Date Published APPROVED AS TO FORM: ARTHUR “PAT” FITZPATRICK, CITY ATTORNEY P:\Civil\Ordinance\3.70-TechException_ChangeOrders_CBAs-04-18-2018_DRAFT.docx 8.a Packet Pg. 36 At t a c h m e n t : 3 . 7 0 - T e c h E x c e p t i o n _ C h a n g e O r d e r s _ C B A s - 0 4 - 1 8 - 2 0 1 8 _ D R A F T ( 1 2 2 7 : U p d a t e P u r c h a s i n g a n d C o n t r a c t i n g C o d e P r o v i s i o n s –