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HomeMy WebLinkAbout4474 ORDINANCE NO.4474 AN ORDINANCE of the City Council of the City of Kent, Washington, amending various sections of Chapter 3.70 of the Kent City Code, entitled "Public Contracting and Procurement" to add options for the procurement of public works; to recodify Showare Center purchasing authority for clarity; to delegate the authorization of certain software renewals to the Mayor; and to delegate the authorization of insurance contracts and renewals to the Mayor. RECITALS A. Washington public agencies are authorized by RCW 39.34.030 to use another agency's bid award to streamline public purchasing while still utilizing a competitive process to obtain the lowest price. This ordinance removes a restriction on utilizing other agency's bid award on public works projects, giving the City an additional procurement option when appropriate. B. The contracting authority currently delegated to the operator of the Showare Center is codified as a competitive bidding exemption, despite it technically delegating contract approval authority. This ordinance partially reassigns this provision to Part 4 of Chapter 3.70 in order to clarify this delegation of authority. C. The City often enters into software contracts that allow for indefinite periods of renewal for subscription or maintenance fees. Currently, 1 Amend KCC 3.70 - Re: Public Contracting and Procurement once these renewals cumulatively reach the contract amendment thresholds identified in Part 4 of Chapter 3.70, the City's Information Technology Department must request additional authorization from the City Council, despite the costs for these renewals being included within Council's approved budget. This ordinance allows the Mayor to authorize contract renewals so long as there are sufficient funds budgeted to cover those contract costs. D. The City generally renews its liability and property insurance policies semiannually. The timing of these insurance renewals requires the City to act quickly to authorize these agreements in order to maintain coverage. This ordinance allows the Mayor to authorize and sign contracts to purchase or renew insurance coverage within established budgets. However, this approval would be conditioned upon the Risk Manager reporting to Council at a future public meeting any changes in coverage or deductibles. 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: 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 2 Amend KCC 3.70 - Re: Public Contracting and Procurement 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. 3 Amend KCC 3.70 - Re: Public Contracting and Procurement 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 weeks after the contract is awarded. If an emergency procurement or contract exceeds $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 4 Amend KCC 3.70 - Re: Public Contracting and Procurement brokerage services, third-party administrator services for liability claims, and third-party administrator services for workers' compensation claims. 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 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. E. 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 5 Amend KCC 3.70 - Re: Public Contracting and Procurement KCC 3.70.080, but may be entered into through direct negotiations with the city. F. 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 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. G. Use of another public agency's bidding procedures. The competitive bidding procedures established in this chapter shall not apply to purchases or the procurement of public works 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. z� n„ ii rites i .., . crd-St^vn- n�-ry . However, bid ffecess is satisfied undeF this 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. 6 Amend KCC 3.70 - Re: Public Contracting and Procurement H. 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 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 otherwise complies with the contract approval requirement of KCC 3.70.210(D) GeRte . 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 7 Amend KCC 3.70 - Re; Public Contracting and Procurement comply with any required competitive bid process applicable to the city for the public work. I. 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 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. J. 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. K. 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: 8 Amend KCC 3.70 - Re: Public Contracting and Procurement 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 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 year under this competitive bid exception do not exceed $2 per resident or $25,000, whichever amount is greater. L. 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. M. 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. N. Lodging tax grant awards. If the city is awarded a grant by city council through the lodging tax advisory committee process for the purchase of goods, materials, equipment, or services, not included within a public work, that purchase is not required to follow the competitive bidding requirements provided in KCC 3.70.080, and a contract for such purchase may be entered 9 Amend KCC 3.70 - Re: Public Contracting and Procurement into through direct negotiations. The procurement of architectural, engineering, and land surveying services, however, remains subject to the requirements provided in KCC 3.70.070. 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$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 entered into over $25,000 and report those contracts to the city clerk. 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(G); (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 10 Amend KCC 3.70 - Re: Public Contracting and Procurement attorney has determined the contract between the bidding agency and the awarded contractor or vendor sufficiently protects the interests of the city. C. Estimated procurement costs. When determining whether director, mayoral, or council approval is required for any contract, and the total cost of the contract is unknown because a definite term or unit amount cannot be reasonably determined, the procurement cost, for the purpose of establishing appropriate contract approval procedure, is the estimated annual cost of the procurement, including any estimated sales tax. D. Approval of ShoWare Center contracts. Contracts for goods and services entered into by the ShoWare Center operator are otherwise exempt from the authority requirements within Part 4 of this chapter, provided that contracts over $25 000 must first be approved by the chief administrative officer. The operator will also provide the mayor and council with a monthly audit report documenting financial activities at the ShoWare Center. SECTION 3. - 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 $100,000 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. 11 Amend KCC 3.70 - Re: Public Contracting and Procurement B. Change orders or contract amendments. The mayor is authorized to approve and sign change orders or contract amendments that collectively are within 20 percent or $200,000 of the original contract amount, including any applicable taxes, whichever amount is greater, if sufficient funds remain within the existing project or city 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 $100,000 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 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 12 Amend KCC 3.70 - Re: Public Contracting and Procurement by the city under the terms of the agreement, or any resources dedicated by the city to the cooperative effort, does not exceed $100,000, and any payment or dedicated resource obligation under the agreement may be paid through the existing budget. 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. 3. To accept land, attachments, fixtures, improvements, appurtenances, and other real or personal 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. 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 13 Amend KCC 3.70 - Re: Public Contracting and Procurement collection company, may be approved and signed by the mayor, subject to prior review by the city attorney. G. 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. H. 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. I. Contracts with temporary staffing firms. Temporary staff may be retained through staffing firms that provide temporary employees to work for the city. The mayor is authorized to sign contracts with staffing firms for temporary employees for technical, programming, and project support professionals, as well as architects, engineers, and other professionals when the contract term does not exceed 18 months and the contract value does not exceed $200,000. Funding for contracts approved by the mayor under this section shall be within the contracting department's established budget. In the event a contract was signed by the mayor under this section, and it is later determined that the length or cost of the contract will exceed the 14 Amend KCC 3.70 - Re: Public Contracting and Procurement time or amount provided in this section, the mayor's change order or amendment authority shall not apply and the department director shall bring the matter before the city council for consideration of ratification. Nothing in this section shall limit the authority of department directors or the mayor as provided in other sections of this chapter. J. Contracts for software renewals with periodic subscription or maintenance. The mayor is authorized to sign renewals of software contracts that utilize periodic subscription fees for use or maintenance of the contracted service if there are funds available within existing budgets to pay the associated contract cost. Any initial agreement to purchase software or software as a service must still be authorized in accordance with Part 4 of this chapter. K. Insurance coverage contracts for city property and interests. The mayor is authorized to sign agreements to purchase or renew insurance coverage for the City so long as funds are available within established budgets to pay the associated premium costs. Subsequent to any insurance purchase or renewal whose premium exceeds $100,000, the City's Risk Manager or designee will make an informational presentation to the City Council reporting the purchased coverage, the cost of that coverage, and any change in deductible amounts or coverage. SECTION 4. - Severability. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. 15 Amend KCC 3.70 - Re; Public Contracting and Procurement 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. SECTION 6. - Effective Date. This ordinance shall take effect and be in force thirty days from and after its passage as provided by law. November 21, 2023 DANA RALPH, MAY Date Approved ATTEST: LU-W � W November 21, 2023 KIMBERLEY 6 KOMOTO, CITY CLERK Date Adopted November 24, 2023 Date Published APPR AS O FORM: T P1W H ITE, CITY ATTORNEY 16 Amend KCC 3.70 - j Re: Public Contracting and Procurement Kent Reporter Affidavit of Publication State of Washington) County of King ) ss Rudi Aleott being first duly sworn, upon oath deposes and says: that he/she is the legal representative of the Kent Reporter a weekly newspaper. The said newspaper is a legal newspaper by order of the superior court in the county in which it is published and is now and has been for more than six months prior to the date of the first publication of the Notice hereinafter referred to, published in the English language continually as a weekly newspaper in King County, Washington and is and always has been printed in whole or part in the Kent Reporter and is of general circulation in said County, and is a legal newspaper, in accordance with the Chapter 99 of the Laws of 1921, as amended by Chapter 213, Laws of 1941, and approved as a legal newspaper by order of the Superior Court of King County, State of Washington, by order dated June 16, 1941, and that the annexed is a true copy of KEN987743 ORDS 4474- as it was published in the regular and entire issue of said paper and not as a supplement form thereof for a period of 1 issue(s), such publication commencing on 11124/2023 and ending on 11/24/2023 and that said newspaper was regularly distributed to its subscribers during all of said period. The amount of the fee for such publication is 5244.17. Subscribed and sworn before me on this day of �{� q EXP NaTA R N ry Public in and for the State of ( 1. • P AC QZ�; Washington. }4 y` ' C2 . City oFKcnL Cin•Clerk-LEG.\LADS i 5033133' .` KluKomoro or WASN� ,�` Classified Proof CITY OF KENT NOTICE OF ORDINANCES PASSED BY THE KENT CITY COUNCIL The following are sum- maries of ordinances passed by the Kent City Council on November 21.2023. ORDINANCE NO.4474 -AN ORDINANCE of the City Council of the City of Kent, Washington, amending various sec- tions of Chapter 3.70 of the Kent City Code,enti- tled "Public Contracting and Procurement'to add options for the procure- ment of public works; to recodify ShoWare Cen- ter purchasing authority for clarity; to delegate the authorization of cer- tain software renewals to the Mayor,and to dele- gate the authorization of insurance contracts and renewals to the Mayor. This ordinance shall take effect and be in force thirty days from and after its passage as pfmided by law. ORDINANCE NO. 4475 -AN ORDINANCE of the City Council of the City of Kent,Washington,ap- proving the consolidating budget adjustments made between Juir 1, 2023 and September 30, 2023,reflecting an over- all budget increase of $4,079,264. This ordi- nance shall take effect and be in force fire days after publication,as pro- vided by law. ORDINANCE NO. 4476 -AN ORDINANCE of the City Council of the City of Kent, Washington, amending the Kent Comprehensive Plan and its Capital Facilities Element to reflect a s x- Proofed by Jennifer Tribbett,02/20/2024 02:22:45 pm Page:2 Classified Proof year plan for capital im- provement projects, the six-year Capital Im- provement Plan of the Puget Sound Regional Fire Authority, and the six-year Capital Facilities Plans of the Kent, Au- bum, Federal Way, and Highline School Districts (2024-2029). This ordi- nance shall take effect and be in force 30 days from and after its pas- sage, as provided by law. ORDINANCE NO. 4477 -AN 1=1 NANCE of the City Council of the City of Kent, Washington, amending Sections 12.13.040, 12.13.130, 12,13.160, 12.13.170. and 12.15.040,and add- ing new section 12.15.130 of the Kent City Code to adjust the school and fire impact fee schedules_This ordi- nance shall take effect and be in force 30 days from and after its pas- sage, as provided by law ORDINANCE NO.4478 -AN ORDINANCE of the City Council of the City of Kent, Washington, levying 2023 property taxes for the second year of the 2023-2024 biennial budget for the City of Kent. This ordi- nance shall take effect and be in force five days after the date of its publi- cation as provided for by RCVJ 35A.11.090 and RCW 35A.12.130; how- ever, the property tax levied through this ordi- nance shall not be as- sessed for collection un- blJanuary 1,2024- ORDINANCE NO. 4479 -AN ORDINANCE of the City Council of the City of Kent,Washington.re- Eating to the mid biennial review and modification of the 2023-2024 biennF at budget as required by RCW 35A.34.130 and Ordinance No. 4451; adopting certain modif- cations to the 2024 bud- get;and establishing an effective date.This ordi- nance shall take effect and be in force five days after the date of its publi- cation as provided for by RCW 35A.1 1.090 and RCW 35A.12.130: how- ever,the budget author- ized through this ordi- nance shag be effective January 1,2024. A copy of the complete text of any ordinance will be mailed upon request of the City Clerk. Kimberley A. Komoto, City Clerk KkomntoCcr KentWA.goy 253-856-5725 tf987743 1112423 Proofed by Jennifer Tribbett,02/20/2024 02:22:45 prn Page:3