It is the purpose of this chapter to provide guidelines for the purchase of goods and services by the City in order to maintain an efficient and accountable purchasing process. It is also the purpose of this chapter to allow for the flexible application of these guidelines for more efficient and cost-effective purchases where their strict application would not be in the City's best interest, such as, for example, in those instances where requests for bids or quotations would not be appropriate due to a sole source supplier or where negotiations with a particular supplier would be more appropriate due to a specialized need of the City.
(Ord. 4934 § 3 (part), 2005; Ord. 4975 § 1, 2006)
Any contract, written or oral, for the purchase of materials, supplies, equipment or services or the lease or rental of equipment shall be subject to the provisions of this chapter; provided, that except for the requirements set forth in BMC § 2.76.100 and § 2.76.110 relating to authorization by the Mayor and City Council, the limitations contained in this policy do not apply to:
(a) 
Public works or improvement contracts which shall be entered into pursuant to RCW 35.22.620 as currently enacted and as hereinafter amended.
(b) 
Contracts for architectural and engineering services governed pursuant to Chapter 39.80 RCW as currently enacted and as hereinafter amended.
(c) 
Purchases of materials at auctions conducted by the United States Government or any agency thereof, or by the State of Washington and any of its political subdivisions.
(Ord. 4934 § 3 (part), 2005)
For the purposes of this chapter, the following definitions will apply:
(a) 
"Best bid"
shall mean a bid that is the best value to and in the best interests of the City when considering items such as price, available discounts, the product or service purchased, including any alterations or modifications thereto, shipping, time of delivery, warranty and other terms of purchase, and any other factors relevant to the purchase. "Best bid" does not necessarily mean lowest price.
(b) 
"Bid"
shall mean an offer or quotation to provide goods and/or services at a specified price.
(c) 
"Contract" or "contract for purchase"
shall mean a purchase from a wholesaler, retailer or dealer, or other similar transaction for the purchase of goods and services.
(d) 
"Director"
shall mean the director of the department for which the contract for purchase is made, authorized purchasing agent, or his or her designee.
(e) 
"Director of Financial and Administrative Services"
shall mean Director of the Department of Financial and Administrative Services, or his or her designee.
(f) 
"Emergency"
shall mean any situation where the public health, safety and welfare are endangered.
(g) 
"Purchase of goods and services"
shall mean a contract to supply materials, supplies, equipment, the lease or rental of equipment, and/or the performance of work or labor.
(h) 
"Written bid" or "written request for bid"
shall include email and facsimile transmittals.
(Ord. 4934 § 3 (part), 2005; Ord. 5507 § 6, 2025)
Requests for bids required in this section shall be solicited for the purpose of establishing comparable and competitive bid pricing and the best price for the proposed purchase. Bids received in response to such requests for bids shall be documented and submitted, along with any other relevant material, to the approving authority as set forth in BMC § 2.76.100. Bids for purchases shall be obtained as follows:
(a) 
Purchases of Ten Thousand Dollars ($10,000) or Less. Any contract for which the estimated cost to purchase goods or services is ten thousand dollars ($10,000) or less shall be entered into pursuant to such terms and conditions as may be authorized by the Director. Purchases under this subsection are not required to be entered into pursuant to solicitation or requests for bids and may be entered into through direct negotiations.
(b) 
Purchases over Ten Thousand Dollars ($10,000) but Not Exceeding Twenty-Five Thousand Dollars ($25,000). If it appears that the estimated cost of a contract to purchase goods or services, other than professional and consulting services, will be over ten thousand dollars ($10,000) but not exceeding twenty-five thousand dollars ($25,000), the Director may contract as follows:
(1) 
Telephone and/or Written Bids. Solicit, obtain and document telephone and/or written comparable bids for each purchase from at least three (3) sources. If less than three (3) vendors are available for bids after reasonable attempts, then such shall be documented and bids may be obtained from the available sources;
(2) 
Bid Lists. For regularly made purchases, a list of comparable bids may be maintained and updated periodically and purchases made from that list without soliciting bids for each such purchase;
(3) 
Written Request for Bids. Request in writing, and obtain from at least three (3) sources, written comparable bids for each purchase. Requests for bids should be in writing and contain appropriate specifications and terms of purchase as may be applicable. If less than three (3) vendors are available for bid after reasonable attempts, then such shall be documented and bids may be obtained from the available sources; or
(4) 
Advertised Request for Bids. Publish notice calling for bids in a newspaper of general circulation most likely to bring responsive bids at least ten (10) days before entering into that contract. The notice shall generally state the nature of the contemplated purchase and the description or specifications thereof, and it shall require that the bids be filed with the City Clerk or other designated office of the City within the time specified therein.
(c) 
Purchases over Twenty-Five Thousand Dollars ($25,000). If it appears that the estimated cost of a contract to purchase goods or services, other than professional and consulting services, will be over twenty-five thousand dollars ($25,000), the Director may contract for purchase as follows:
(1) 
Written request for bids pursuant to subsection (b)(3) of this section; or
(2) 
Advertised request for bids pursuant to subsection (b)(4) of this section.
(d) 
Award of Contract on Best Bid. Subject to the authorization requirements set forth in BMC § 2.76.100, the Director may:
(1) 
Award a contract for purchase to the best bid as defined in BMC § 2.76.030(a) in response to a solicitation or request for bid pursuant to this section;
(2) 
Reject any and all bids; and/or
(3) 
Enter into direct negotiations with a bidder to modify the product or service to be purchased or to obtain a more favorable price or terms for the City.
If an award of a contract for goods and services is made to a supplier who is not the lowest bidder, then the reason for awarding the contract to another supplier shall be documented (delivery time, warranty, the bid did not meet the product or service requirements of the City, or specific product line preferred for uniform equipment fleet, etc.).
(e) 
Local Preference Purchase for Goods. When reviewing bids for purchase, all things being equal when considering factors such as product quality, delivery, warranty or service provided, there is a preference to purchase from a local supplier. A local supplier is a supplier having an office or facility located in Kitsap County and licensed to do and doing business in the County.
(f) 
Contracts with Other Public Entities. In lieu of the requirements for requests for bids pursuant to this section, the City may, pursuant to an interlocal agreement with another public entity which has entered into a contract with a supplier pursuant to an advertised request for bid, contract with said supplier on similar terms for the purchase of materials, supplies or equipment.
(Ord. 4934 § 3 (part), 2005; Ord. 4975 § 2, 2006)
In lieu of the requirements for requests for bids pursuant to BMC § 2.76.040, requests for proposals may be utilized when deemed appropriate under such terms and conditions determined suitable to meet the needs and requirements of the particular purchase.
(Ord. 4934 § 3 (part), 2005)
This section shall apply to professional and/or technical service consultant contracts in which the City enters into an agreement to purchase consultant services for City government from a corporation, firm, agency, individual, or group of individuals based on their recognized experience and knowledge within a specialized area of expertise. Contracts for professional and consultant services are not required to follow the purchasing requirements set forth in BMC § 2.76.040, but may be entered into through direct negotiations.
(Ord. 4934 § 3 (part), 2005)
In lieu of requesting bids for each purchase or maintaining bid lists, the City may solicit bids or proposals for a supply contract for a specific term or issue a blanket purchase order for the supply of goods, materials, supplies, equipment or services on an as-needed basis in those instances where the specific service or product in a product line or volume of units is undetermined, such as the City's needs and use of office supplies.
(Ord. 4934 § 3 (part), 2005)
To determine the cost of a contract for the purpose of establishing the appropriate purchasing procedures under this chapter, when the contract has no definite term or unit amount such as a supply contract or blanket purchase order, the amount of each individual purchase shall determine the appropriate purchasing procedures. Contracts may not be split to avoid the bidding and authorization requirements set forth in this chapter. Bid splitting includes the inappropriate division of a purchase into separate units for purchase and/or over a period of time merely for the purpose of avoiding the required approval processes. Bid splitting does not include the purchase of goods or services by different City departments or offices for unrelated projects or purposes.
(Ord. 4934 § 3 (part), 2005; Ord. 4975 § 3, 2006)
The requirements set forth in BMC § 2.76.040 for requests for bids may be waived by a written determination by the Director that either the materials, supplies, equipment or services are clearly and legitimately limited to a single source of supply, or that the materials, supplies, equipment or services are subject to special market conditions, involve special facilities or services, or that a bid would otherwise not be practicable or in the City's best interests under the circumstances, in which instances the purchase price may be best established by direct negotiation. The written determination shall also recite why this situation exists.
(Ord. 4934 § 3 (part), 2005)
(a) 
Mayor/Director Approval. Any contract which is one hundred thousand dollars ($100,000) or less intended for the purchase, lease or rental of supplies, material, equipment or services must be approved by the Mayor or Director or his or her designee to become effective and binding upon the City. Such authorization must coincide with BMC § 3.02.020 and not cause an overexpenditure of any budget category group and must also be in accordance with BMC § 3.02.030.
(b) 
Council Approval. Any contract which is over one hundred thousand dollars ($100,000) intended for the purchase, lease or rental of supplies, material, equipment or services must be approved by the City Council to become effective and binding upon the City. Such authorization must coincide with BMC § 3.02.020 and not cause an overexpenditure of any budget category group and must also be in accordance with BMC § 3.02.030.
(Ord. 4934 § 3 (part), 2005; Ord. 5452 § 1, 2022; Ord. 5475 § 1, 2023)
(a) 
Amendments or change orders to contracts requiring City Council approval under this chapter may be administratively approved by the Mayor if the changes are:
(1) 
Within the scope of the project;
(2) 
Consistent with an initial bid process, if any;
(3) 
Executed in writing; and
(4) 
An increase of the contract award amount (CAA) as follows:
Contract Award Amount
Percentage Increase in CAA (the Greater Of)
Limits
Less than $100,000*
30%* or minimum
Min.
$0
Max.
$30,000*
$100,000 to $500,000
20% or minimum
Min.
$30,000
Max.
$100,000
Greater than $500,000
10% or minimum
Min.
$100,000
Max.
$200,000
* if percent change results in the CAA remaining at $100,000 or less, it does not need City Council approval
(b) 
The value of all change orders will be aggregated. When any single change order, or combined change orders on the same project or single purchase exceeds the value limit, the change must be approved by the City Council, except in the following instances:
(1) 
On service contracts used to accomplish an ongoing City program as opposed to completing a short-term project or purchase, change order rules, including the aggregate rule, shall be applied on an annual basis.
(2) 
Where the size of the contract and the exhausting of change order authority make further change order authorization impractical, the City Council may, upon recommendation of the Mayor, extend the aggregate limits of subsection (a)(4) of this section for specific contracts.
(c) 
A work change directive may be used to:
(1) 
Authorize and direct work that will result in an increase in contract price within the administrative authority of the Mayor as provided in subsection (a) of this section for specific contracts. Work change directives that affect the contract price shall be incorporated into a change order.
(2) 
Authorize and direct work that will result in an increase in contract price in excess of the administrative authority of the Mayor as provided in subsection (a) of this section:
(i) 
Where unforeseen conditions necessitate an immediate change to avoid a contractor's claim against the City for delays; or
(ii) 
Due to an emergency as defined in BMC § 2.76.030(f).
In such circumstances, the work change directive shall be incorporated into a change order and presented to the City Council at its next regularly scheduled public meeting, subject to scheduling.
(Ord. 4934 § 3 (part), 2005; Ord. 5475 § 2, 2023)
Nothing in this chapter shall prohibit the City from preferentially purchasing products made from recycled materials or products that may be recycled or reused.
(Ord. 4934 § 3 (part), 2005)
When any emergency requires the immediate execution of any contract to purchase, lease or rent as described in this chapter, upon the finding of the existence of such an emergency, the Mayor shall have the power to make and enter into such contract without strict compliance with the purchasing requirements set forth in this chapter. The designated department director shall issue a written basis for the emergency determination accompanied by a description and/or specification and cost estimate of the contract at the time of or as soon as practicable after the commencement of the purchase.
(Ord. 4934 § 3 (part), 2005)
(a) 
The Director of Financial and Administrative Services shall implement and maintain the following system for the distribution, authorization and control of credit/purchase cards issued to or for the benefit of the City and used by City officials and employees.
(1) 
Distribution. Credit cards may be distributed to those City officials and employees who, in the opinion of the Director of Financial and Administrative Services, have job responsibilities that would benefit or otherwise be facilitated by use of credit/purchase cards.
(2) 
Authorization and Control. The Director of Financial and Administrative Services shall develop specific administrative guidelines and accounting controls to ensure the proper usage of credit/purchase cards and related funds. Credit/purchase cards are to be used when it is in the best interest of City administrative affairs.
(3) 
Application. The individual holder, upon prior approval of the Director of Financial and Administrative Services, shall use each credit/purchase card in a responsible manner.
(4) 
Credit Limits. The Director of Financial and Administrative Services shall set credit/purchase limits on each card issued subject to final approval by the Mayor. Individual purchases shall not exceed five thousand dollars ($5,000) and in no event shall the credit/purchase card limit exceed ten thousand dollars ($10,000) for any individual credit/purchase card account without pre-approval of the Director of Financial and Administrative Services.
(5) 
Credit Card Restriction. The following will be considered an unauthorized transaction, purchase or use of any City credit/purchase card:
(i) 
Cash advances;
(ii) 
Payment of invoices or statements;
(iii) 
Purchases where an open charge account would be utilized;
(iv) 
Personal purchases of any kind; and/or
(v) 
Obtaining cash refunds for goods purchased with a City credit/purchase card.
(6) 
Disallowed Charges. Disallowed charges or charges not properly identified will be paid by the employee before the charge card/purchase billing is due. Failure to do so will render the employee personally liable where the City shall have a prior lien against and a right to withhold any and all funds payable or to become payable to the employee up to the unpaid amount, plus interest and/or fees at the rate charged by the bank that issued the card. The employee shall not use the credit/purchase card if any disallowed charges are outstanding.
The act of obtaining a City credit/purchase card does not indicate pre-approval of expenditures.
(7) 
Return of Credit/Purchase Card. The employee shall return all City credit/purchase cards at the request of the Director of Financial and Administrative Services, or upon separation of employment. Final paycheck will be held until all outstanding City property has been returned.
(b) 
The Mayor and/or Director of Financial and Administrative Services are authorized to implement any additional policies or administrative procedures necessary to implement the provisions of this section.
(Ord. 4934 § 3 (part), 2005; Ord. 5507 § 7, 2025)
(a) 
Surplus Personal Property of Twenty-Five Thousand Dollars ($25,000) or Less in Value. Approval of the City Council is not required for the sale or disposition of any City-owned surplus personal property with an estimated value of twenty-five thousand dollars ($25,000) or less. When such personal property has been certified for disposition by a Director, sale or disposition shall be made by the Director in accordance with methods described in subsection (c) of this section. Items having a nominal value may be disposed of in any reasonable and prudent manner or the Mayor may donate the item to a specific bona fide charitable organization which is tax exempt pursuant to Internal Revenue Code Section 501(c)(3).
(b) 
Surplus Personal Property over Twenty-Five Thousand Dollars ($25,000) in Value. Disposition of surplus personal property with an estimated value over twenty-five thousand dollars ($25,000) must be approved by the City Council. The City Council may:
(1) 
Approve the disposition;
(2) 
Approve the disposition with conditions; or
(3) 
Disapprove the proposed disposition, whereupon it shall give the Director directions for further action.
(c) 
Methods of Disposition. Permissible methods of disposition of surplus personal property include, but are not limited to:
(1) 
Public auction;
(2) 
Solicitation of bids;
(3) 
Negotiated sale for approximate fair market value; or
(4) 
Transfer to another agency of government pursuant to subsection (d)(4) of this section.
(d) 
Statutory Conditions/Exceptions. Certain provisions of the Revised Code of Washington impose special conditions or procedures for the disposition of municipal personal property. When required, the Director shall comply with those laws, and when authorized the Director may utilize said laws, treating them as limited exceptions to the extent inconsistent with the requirements of this chapter. These laws include, but are not limited to, the following as currently enacted and hereinafter amended:
(1) 
Chapter 35.94 RCW - Sale or Lease of Municipal Utilities;
(2) 
Chapter 63.32 RCW - Unclaimed Property in Hands of City Police;
(3) 
RCW 35.21.088 - Equipment rental fund;
(4) 
Chapter 39.33 RCW - Intergovernmental Disposition of Property;
(5) 
Chapter 39.34 RCW - Interlocal Cooperation Act;
(6) 
Chapter 63.21 RCW - Lost and Found Property;
(7) 
RCW 35.21.730 through 35.21.755 - Transfers to public corporations; and
(8) 
RCW 46.55.230 and 46.55.240 - Disposition of junk vehicles.
(Ord. 4934 § 3 (part), 2005)
The Mayor is authorized to establish and implement policies and procedures deemed appropriate for the administration of this chapter. These policies and procedures shall be set forth in City Policy No. 1-20-03.
(Ord. 4975 § 4, 2006)
(a) 
Definitions. For the purposes of this section, the definitions set forth in RCW 43.19A.010 shall apply, unless the context clearly requires otherwise.
(b) 
When planning government-funded projects or soliciting and reviewing bids for such projects, City departments shall identify whether compost products can be utilized in the project. In the event that compost products can be utilized, City departments shall require purchase of compost products for use in the project.
(c) 
City departments shall plan for the use of compost products in any of the following categories that are applicable to their operations and project types:
(1) 
Landscaping projects;
(2) 
Construction and postconstruction soil amendments;
(3) 
Applications to prevent erosion, filter stormwater runoff, promote vegetative growth, or improve the stability and longevity of roadways; and
(4) 
Low-impact development and green infrastructure to filter pollutants or to keep water on site or both.
(d) 
Notwithstanding subsections (b) and (c) of this section, City departments are not required to use compost products if:
(1) 
Compost products are not available within a reasonable time or distance from the project;
(2) 
Compost products that are available do not comply with existing purchasing standards;
(3) 
Compost products that are available do not comply with federal, state or local health, quality and safety standards; or
(4) 
Compost purchase prices are not reasonable or competitive.
(e) 
City departments shall give priority to purchasing compost products from companies that:
(1) 
Produce compost products locally;
(2) 
Are certified by nationally recognized organization such as, but not limited to, the US Composting Council;
(3) 
Produce compost products that are derived from municipal solid waste compost programs and meet quality standards comparable to standards adopted by the Department of Transportation or adopted by rule by the Department of Ecology.
(f) 
Beginning December 2024, City departments that use compost shall report the following information to the designated employee by each December 15th:
(1) 
The volume and cost of compost purchased by the City department in that year; and
(2) 
The source or sources of the compost purchased by the City department in that year.
(g) 
To the extent required by RCW 43.19A.150(4), the City will develop strategies to inform residents about the value of compost and how the City uses compost in its operations.
(h) 
By December 31, 2024, and each December 31st of even-numbered years thereafter, the City shall submit a report covering the previous year's compost procurement activities to the Department of Ecology that contains the following information:
(1) 
The total tons of organic material diverted throughout the year;
(2) 
The volume and cost of compost purchased throughout the year; and
(3) 
The source or sources of the compost.
(Ord. 5466 § 1, 2022)