MEMO TO: Members of the City Council
FROM: Mayor John Marchione
SUBJECT:
title
Approval of Purchasing Policy Revisions to Bidding Requirements and Signing Authorizations
a. RESOLUTION NO. 1503: A Resolution Revising Procurement Policies and Establishing Contract Approval Authority, and Establishing an Effective Date
b. ORDINANCE NO. 2929: An Ordinance Repealing RMC 2.86, Selection of Architectural and Engineering Consultants
I. RECOMMENDED ACTION
recommendation
Approve purchasing policy revisions to bidding requirements and signing authorizations.
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II. DEPARTMENT CONTACTS
Malisa Files, Finance Director 425-556-2166
Kelley Wood, Fiscal Services Manager 425-556-2160
III. DESCRIPTION/BACKGROUND
Per the discussion that began in 2017, the Purchasing Division of the Finance Department has updated and revised City procurement policies and procedures. As part of that process, the Department is seeking Council’s approval to increase competitive bidding requirements for certain items; match state statutes for public work projects; and increase the Mayor’s approval authority.
The proposed Purchasing Policy and resolution clarify the City’s bidding requirements for general operating supplies and equipment, operating services, repair and maintenance, general services and professional services where no State statute dictates specific levels. The policy and resolution also bring the City’s policies in line with state statutes for the bidding requirements for public works or contracting for architectural and engineering services and allows for the policy to incorporate changes to those levels if state statutes are updated.
Within the Purchasing Policy and resolution, approval authority for the Mayor has been raised from $25,000 to $50,000 for professional services, and architectural and engineering services. For public work projects the Mayor’s approval authority has been raised from $200,000 to $300,000 consistent with state statute.
Additionally, a repeal of Ordinance No. 2549 for Redmond Municipal Code Chapter 2.86, for the Selection of Architectural and Engineering Consultants is proposed as it is procedural in nature, duplicative of the RCW governing contracting and purchasing for those services as well as the proposed purchasing policies. Staff has been reviewing the Redmond Code when these types of changes occur to make sure that it is kept up to date and remains consistent with current policy.
IV. PREVIOUS DISCUSSIONS HELD
The suggested changes to competitive bidding and approval authority were presented to Council at the May 22, 2018 and August 28, 2018 Finance Administration and Communications Committee meetings and the June 12, 2018 study session. At the June 12th study session, Council gave direction to proceed with bringing the proposed changes and related documentation to a future Council meeting for adoption.
At the August 28th meeting, Council asked to be able to review the changes again and contact staff if they had any additional comments or questions. As of the writing of this memo there has been no further discussion.
V. IMPACT
A. Service/Delivery:
The proposed changes will bring City policies in line with state requirements for contracting and bidding for public works projects and architectural and engineering services.
Revising the City’s policy that notes when bids are required to purchase general operating supplies and equipment, operating services, repair and maintenance, general services and professional services; where no State statute dictates specific levels, will provide staff more flexibility to manage the purchasing process. Bids will still be encouraged to ensure the City obtains the best pricing possible.
Increased signing authority for the Mayor will allow items to be processed in a timely manner.
B. Fiscal Note:
No fiscal impact.
VI. ALTERNATIVES TO STAFF RECOMMENDATION
1) Adopt the changes as proposed.
2) Do not adopt the proposed changes.
3) Request a revision to the policies to be brought back to Council at a later date.
VII. TIME CONSTRAINTS
No time constraints.
VIII. LIST OF ATTACHMENTS
Attachment A: Draft Resolution
Attachment B: Draft Ordinance to Repeal Ordinance 2549
Attachment C: Bidding and Approval Matrix
Attachment D: Draft Policy