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HomeMy WebLinkAbout2009-056 City - County Interlocal Purchasing Services Agreement and Budget AppropriationORDINANCE .NO 2009 -56 AN ORDINANCE amending the 2009 budget for the City of Yakima; and making appropriations of $18,259 within the 000 — General Fund for expenditure during 2009 to provide for the City to perform purchasing functions for Yakima County WHEREAS, the City of Yakima and Yakima County have entered into a Interlocal Agreement to which provides that effective November 1, 2009 the City of Yakima shall administer the County's purchasing functions to be, and WHEREAS, the amount of $18,259 must be appropriated within the 000 — General Fund for expenditure during 2009 to provide for the operating costs associated with the City providing purchasing services to Yakima County, and WHEREAS, at the time of the adoption of the 2009 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35 33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA. Section 1 The amount of $18,259 is hereby appropriated from the Unappropriated Fund Balance in the 000 - General Fund to the following accounts as a 2009 appropriation Resources: Yakima County Interlocal Agreement --000- 000 -632- 0000 - 33819 -PUR - $18,259 Expenditures: Permanent Salaries-Purchasing -------- 000 - 019 -632- 0000 -51840 -111 - $18,259 Section 2: This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter PASSED BY THE CITY COUNCIL, signed and roved this 17'h da of November, 2009 David Ed1er, Mayor ATTEST First Reading: November 3, 2009 Publication Date. November 20, 2009 Effective Date November 20, 2009 Cje Purchasing Consolidation Approp Ord 11/18/2009 L` J • • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No 2-1 For•Meeting Of November 17. 2009 ITEM TITLE Consideration of legislation regarding purchasing services to Yakima County- A. A Resolution authorizing the City Manager to execute an Interlocal Agreement between the City of Yakima and Yakima County for the provision of purchasing services to Yakima County; and B. An Ordinance amending the 2009 budget and making an $18,259 appropriation in the 000 - General Fund, Purchasing Division (Read ordinance by title only, second reading scheduled for November 17, 2009) SUBMITTED BY Dave Zabell, Assistant City Manager CONTACT PERSONITELEPHONE. Dave Zabell, Assistant City Manager Sue Ownby, Purchasing Manager /576 -6695 SUMMARY EXPLANATION: In an effort to improve efficiencies, the City /County Intergovernmental Committee undertook an effort to evaluate the potential advantages of consolidating the City and County purchasing operations. A preliminary study conducted in 2008 by the National Institute of Governmental Purchasing (NIGP) indicated that a consolidation could benefit both the City and the County by centralizing purchasing operations and taking advantage, of economies of scale. A more detailed review was then conducted earlier this year by the Kirkland, Washington consulting firm FCS Group, which confirmed that a consolidation would provide a better level of service for the County while still allowing the City to maintain the high standards that that it had established for its purchasing functions. Resolution X Ordinance X Other (Specify) Funding Fu PROVED FOR SUBMITTAL. \<- Ya S (continued on next page) Phone STAFF RECOMMENDATION A. Adopt Resolution B Read the attached Ordinance by title only at the November 3, 2009 meeting. Pass ordinance after second reading at the November 17, 2009 Council Meeting BOARD /COMMISSION RECOMMENDATION: The Intergovernmental Committee recommends proceeding approval of the City /County Purchasing Services and Interlocal Agreement. COUNCIL ACTION A. Resolution adopted November 3, 2009 R- 2009 -148 The FCS Group was also tasked to work with the City and County in developing an implementation plan for consolidation For several reasons, the FCS Group study 41 recommended that the City Purchasing Division be expanded to provide purchasing services for both agencies. This effort required considerable effort and coordination on the part of the City and County, which in part has led to the success of the effort. Subsequent to the completion of the FCS Group study, the City Council and Board of County Commissioners directed their respective staffs to develop and Interlocal agreement (ILA) As proposed in the ILA, the City will administer purchasing services for the County operating out of City Hall. This consolidation of City and County purchasing operations is unique, and in fact, is the first such consolidation in Washington State and nationally is the first of its kind in over three decades_ As the consolidation will be effective November 1, 2009, attached for your consideration is a balanced appropriation amending the purchasing budget $18,259 to provide for additional salaries for the two new staff positions required for the consolidation of purchasing services for two months to the end of the year, along with the additional revenue to be paid by Yakima County For 2010, the County shall reimburse the City fifty percent (50 %) of the purchasing budget which is $207,087, which is less $19,049 for temporary salaries Per the ILA, reimbursement shall be billed to the County monthly in 12 equal installments. • i RESOLUTION NO. R -2009- A RESOLUTION authorizing and directing the City Manager of the City of Yakima to execute a City /County Purchasing Services and Interlocal Agreement between the City of Yakima and Yakima County for the provision of providing purchasing services to Yakima .County. WHEREAS, RCW Chapter 39.34 authorizes the City of Yakima and Yakima County to enter into a contract for purchasing services that specifies the responsibilities of each party; and WHEREAS, the City and County have studied the possibility of consolidating purchasing services to reduce costs and increase the effectiveness of procurement in their respective jurisdictions; and WHEREAS, the City and County have determined there are significant economic, operational and strategic advantages to such a merger; and WHEREAS,. the City and County have considered the anticipated costs of a consolidated purchasing function and the corresponding potential for efficiencies and savings; and WHEREAS, the City and County have determined that with cost sharing by the County, the City Purchasing Division possesses the human and administrative infrastructure and capacity to successfully fulfill the purchasing needs of both agencies; and isWHEREAS, the City and County consolidation of purchasing functions is unique and will not only be the first consolidation of its type in Washington State, but the first identified in the nation over the past 30 years; and WHEREAS, the City and County consolidation is intended to serve as an example of inter - governmental cooperation; and WHEREAS, the Intergovernmental Committee has reviewed and is in support of a consolidated purchasing operation; and WHEREAS, the City Council deems it to be in the best interest of both entities to affect such relationship, in accordance with the terms and conditions of the attached City /County Purchasing Services and Interlocal Agreement, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager of the City of Yakima is hereby authorized and directed to execute the attached and incorporated City /County Purchasing Services and Interlocal Agreement between the City of Yakima and Yakima County. ADOPTED BY THE CITY COUNCIL this 3`d day of November, 2009. 40 ATTEST: City Clerk David Edler, Mayor CITY /COUNTY PURCHASING SERVICES AND INTERLOCAL AGREEMENT THIS PURCHASING SERVICES AGREEMENT ( "Agreement') is entered into by and between the City of Yakima ( "City"), a municipal corporation, and the County of Yakima ( "County"), a Washington State political subdivision, under the authority and in conformance with RCW 39.34, the Interiocal Cooperation Act. WHEREAS, the City and County have studied the possibility of consolidating purchasing services as a means to reduce costs and increase the effectiveness of procurement in their respective jurisdictions; and WHEREAS, the City and County have. determined there are significant economic, operational and strategic advantages to such a consolidation; and WHEREAS, the City and County have considered the anticipated costs of a consolidated purchasing function and the corresponding potential for efficiencies and savings; and WHEREAS, the City and County have determined that with cost sharing by the County, the City Purchasing Division possesses the human and administrative infrastructure and capacity to successfully fulfill the purchasing needs of both agencies; and WHEREAS, the Intergovernmental Committee has reviewed and is in support of a consolidated purchasing operation as provided for herein; and WHEREAS, the City Council and County Board of Commissioners deem it to be in the best interest.of both entities to affect such relationship; NOW, THEREFORE, in consideration of the mutual promises and conditions contained herein, the parties hereto agree as follows: 1. PURPOSE. The purpose of this Agreement is to set forth the terms and conditions upon which the parties agree to consolidate their individual purchasing services and. to enumerate other related provisions that contribute to their mutual benefit. 2. DURATION. This Agreement shall become effective on November 1, 2009 and shall remain in effect until terminated by either party, in accordance with Section 16 of this Agreement. 3. PURCHASING SERVICES. The parties agree that the most effective way to consolidate purchasing services is for Yakima County to cease all purchasing operations as set forth in this agreement and for the City of Yakima to assume providing such services to the County. Therefore, the parties agree that at midnight on October 31, 2009, the County will cease its purchasing operations and confer sole responsibility for monitoring, supervising, and in all other respects its purchasing services to the City. 4. TRANSFER OF COUNTY EMPLOYEES. Candidates for new positions created as a result of this agreement shall be required to compete per the _City of Yakima Charter Civil Service Rules. No transfer of employees is provided for in this agreement. Page 1 of 7 5. CONTRACTUAL PAYMENT. In exchange for and in consideration of the services to be performed by the City pursuant to this Agreement, for the first year of this agreement, the County agrees to pay the City fifty percent (50 %) of the City's annual purchasing budget, less the cost of a temporary Department Assistant Il that will be hired in 2010 to conduct manual data entry in lieu of an E- Procurement system, and less the amount for an E- Procurement system. For 2010, the fifty percent (50 %) County payment shall be Two Hundred Seven Thousand Eighty Seven Dollars ($207,087) which amount shall be paid to the City in twelve (12) equal installments of Seventeen Thousand Two Hundred Fifty Seven. Dollars and Twenty Five Cents ($17,257.25). The City shall submit an invoice to the County for services provided within thirty (30) days of the conclusion of each month in 2010. The County shall make payment to the City no later than thirty (30) days following receipt of the invoice. For years 2011 and beyond, the parties agree to confer during 2010 and develop cost-sharing methodology reflective of actual costs. In addition, as the consolidation becomes effective November 1, 2009, the County shall pay fifty percent (50 %) of the additional salaries for 2009, for the two new staff positions required for the consolidated operation during the period between November 1, 2009 and December 31, 2009, in the amount of Eighteen Thousand Two Hundred Fifty Nine Dollars ($18,259) which shall be due and payable before December 31, 2009. This amount may be adjusted, depending upon when the new employees actually start work. 6. COUNTY PURCHASING OFFICE EQUIPMENT AND FILES. All purchasing office files and the two existing County purchasing computers shall become the property of City Purchasing on November 1, 2009. All real and personal property that is acquired through this agreement shall be and remain the property of the City. 7. &PROCUREMENT. At such time as the parties agree to acquire an E- Procurement system, said acquisition shall be subject to a contractual agreement that is mutually acceptable to the Parties. 8. CITY RESPONSIBILITIES. • Meet the Mission/Vision/Goals established (EXHIBIT A, copy attached); • Perform as the lead agency for purchasing services and ensure compliance with all legal purchasing requirements for the County; • Provide all necessary personnel, equipment and facilities to provide the services described herein. • Establish and maintain excellent communications with County staff utilizing the purchasing services provided through this agreement 9. COUNTY RESPONSIBILITIES. • Decentralize purchasing below Five Thousand Dollars ($5,000); • Establish Satellite Buyers; • Institute a P -Card program; • Participate in the E- Procurement system per Section 7; 10. . RE- NEGOTIATIONS. The City and County representatives agree to meet annually at least thirty (30) days prior to the anniversary date of this Agreement to review the Purchasing Budget and to assess whether additional consideration is merited for the continued performance under this Agreement, or whether adjustments to level of service provided through this agreement are necessary. In the event that additional consideration is deemed merited by mutual agreement of the Parties, an agreement setting forth the results of such re- negotiations Page 2 of 7 shall be in writing and executed by the parties as an addendum to this Agreement The City Manager has the authority to execute such an addendum on behalf of the City. During re- negotiations, the terms of this Agreement shall remain in full force and effect 11. DATA TRANSFER. Upon execution of this Agreement, the City will begin working with' the County to effectuate the transfer of data necessary for City to perform its obligations under this Agreement. The use of County data by the City shall be pursuant to any and all applicable laws and regulations, including laws and regulations pertaining to . confidentiality of data transferred from the County to the City pursuant to this Agreement Information that is prohibited from public disclosure shall be kept in full confidence by the City and shall not be revealed to any other person, firm, organization, or entity, except as required by law. 12. IMPLEMENTATION. The County and the City shall be jointly responsible for implementation and proper administration of this Agreement. The Procurement Manager will be responsible to oversee implementation of this Agreement, however, resolution of unresolved implementation issues may require action by the goveming bodies. 13. INDEPENDENT CONTRACTOR. The City shall be solely responsible for compensating its employees; and for paying all related taxes, deductions, and assessments, including but not limited to, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury, and other deductions from income which may be required by law or assessed against either party as a result of this Agreement. The County understands and expressly agrees that 'the County, the County Purchasing Department, and the County's employees, officials, and agents are not City employees and the County shall make no claim of employment nor shall claim against the City any employment benefits, social security, and/or retirement benefits. 14. COMPLIANCE WITH LAW. Parties to this Agreement shall comply with applicable federal, state and local laws, rules and regulations in carrying out the terms and conditions of this Agreement. 15. LIABILITY a. To the maximum extent permitted by law, the County shall protect, defend, indemnify, and hold harmless the City of Yakima, its elected officials, officers, employees, and agents from any and all claims, demands, losses, liens, liabilities, penalties, fines, lawsuits, litigation, and other proceedings, and all judgments, awards, costs and expenses, including attomeys' fees and disbursements, arising out of or in connection with the negligent acts or omissions of Yakima County or its agents. b. To the maximum extent permitted by law, the City shall protect, defend, indemnify, and hold harmless Yakima County, its elected officials, officers, employees and agents from any and all claims, demands, losses, liens, liabilities, penalties, fines, lawsuits, litigation, and other proceedings, and all judgments, awards, costs and expenses, including attomeys' fees and disbursements, arising out of or in connection with the negligent acts or omissions of the City or its agents. c. If any claims, demands, losses, liens, liabilities, penalties, fines, lawsuits, litigation, or other proceedings, arise out of or in connection with the negligent acts and/or omissions of both Yakima County and the City of Yakima °or their agents pursuant to this Agreement, each party shall be responsible for its proportionate share of for any Page 3 of 7 resulting judgments, awards, costs and expenses, and for its attorneys' fees and disbursements,. d. Notwithstanding any provision to the contrary, the terms of this section shall survive any expiration or termination of this Agreement. 16. TERMINATION. Termination of this Agreement by either party may be accomplished on one hundred eighty (180) days written notice to the other party of the intent to terminate the Agreement. All costs that have accrued up to the date of termination shall be allocated according to the terms of this agreement. Further, actual costs associated with termination and separation of merged purchasing services shall be reasonably allocated and reimbursed by the parties. 17. DISPUTE RESOLUTION. Any claim, dispute or other matter in question arising out of or related to this Agreement shall be subject to mediation as a condition precedent to litigation in a court of competent jurisdiction. The City and County shall endeavor to resolve claims, disputes and other matters in question between them by mediation which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with mediation procedures in effect on the date of the Agreement. A request for mediation shall be made in writing, delivered to the other party to the Agreement, and filed with the person or entity administering the mediation. The request may be made concurrently with the filing of a complaint but, in such evens, mediation shall proceed in advance of other proceedings, which shall be stayed pending mediation for a period of ninety (90) calendar days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. The parties shall share the mediator's fee and any filing fees equally. The mediation shall be held in Yakima, Washington. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. If the parties do not resolve a dispute through mediation pursuant to this Section the dispute shall be resolved through litigation in a court of competent jurisdiction. 18. INTEGRATION, SUPERSESSION, AND MODIFICATION. This Agreement sets forth all of the terms, conditions, and agreements of the parties relative to the subject matter hereof and supersedes any and all prior negotiations, discussions, agreements, and understandings between the parties as. to the subject matter hereof. There are no terms, conditions, or agreements with respect thereto, except as herein provided and no amendment or modification of. this Agreement shall be effective unless reduced to writing and executed by the parties. 19. NONDISCRIMINATION PROVISION Neither party shall discriminate against any person on the grounds of race, creed, color, religion, national origin, sex, age, marital status, political affiliation, sexual orientation, or belief of the presence of any sensory, mental or physical handicap in violation of the Washington State Law Against Discrimination (RCW chapter 49.60) or the Americans with Disabilities Act (42 USC 12110 et seq.). In the event of the violation of this provision, the other party may terminate this Agreement immediately. 20. ASSIGNMENT This Agreement, or any interest herein, or claim hereunder, shall not be assigned or transferred in whole or part by the County or City to any other person or entity without the prior to Page 4 of 7 ®written consent of both parties. In the event that such prior written consent to an assignment is granted, then the assignee shall assume all duties, obligations, and liabilities of the assignor as are stated herein. 21. AMENDMENT This Agreement shall be amended only by written mutual consent of the parties. Amendments to this agreement may be initiated by either of the parties and shall become final after agreement by all parties and appropriate signatories are attached. 22. NON - WAIVER The failure of either party to insist upon strict performance of any provision of this Agreement or to exercise any right based upon. a breach thereof or the acceptance of any performance during such breach shall not constitute a waiver of any right under this agreement. 23. SEVERABILITY If any portion of this Agreement is changed per mutual written agreement of the parties, or if any portion of this Agreement is held invalid, the remainder of the Agreement shall remain in full force and effect 24. INTEGRATION This written document constitutes the entire Agreement between the City and the County. There are no other written agreements between the parties as to the subjects covered herein. No changes or additions to this Agreement shall be valid or binding upon either party unless such change or addition are in writing and executed by both parties. 25. NOTICES. Unless stated otherwise herein, all notices and demands shall be in writing and sent or hand - delivered to the parties to their addresses as follows: City of. Yakima Richard A. Zais, City Manager 129 N. 2 "d Street Yakima, WA 98901 Yakima County: Craig Warner, Budget Director 128 N. 2nd. Street Yakima, WA 98901 or to such other addresses as the parties may hereafter designate in writing. Notices and /or demands shall be sent by registered or certified mail, postage prepaid, or hand - delivered. Such notices shall be deemed effective when mailed or hand- delivered to the named representatives at the addresses specified above. 26. GOVERNING LAW AND VENUE This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. Litigation necessary to resolve disputes not otherwise decided in accord with the provisions of Section 17, above, shall be decided in the Yakima County Superior Court. 27. APPROVAL Each party shall approve this Agreement as specified by the laws and ordinances of the ® governing body of each party. The attested signatures of the City Manager 'and the Yakima Page 5 of 7 County Commissioners below shall constitute a presumption that such approval was properly obtained. CITY OF YAKIMA R.A. Zais, Jr., City Manager Date: ATTEST: City Clerk City Contract No. Resolution No. Approved as to form: City Attorney YAKIMA COUNTY J. Rand Elliott, Chairman Michael D. Leita, Commissioner Kevin J. Bouchey, Commissioner Constituting the Board of County Commissioners for Yakima County, Washington Date: ATTEST: Christina S. Steiner Clerk of the Board Approved as to form: Deputy Prosecuting Attorney Page 6 of 7 0 L' I � 11 e-*"- 'VISIO'N • Use a cooperative, collaborative approach in understanding customers' needs while helping to expedite purchasing processes. • Ensure processes are consistent, timely, efficient, seamless, and promote legal compliance and fiscal responsibility. • Provide easy to use tools and accessible information which allows customers to provide services to the public. Provide services in a professional, knowledgeable, and respectful manner. • Look for opportunities to be innovative and resourceful and to leverage the combined purchasing power of the City and County. • Ensure public funds are responsibly ` spent in a transparent and fair manner. Purchasing facilitates the timely procurement of goods and services to help customers fulfill their missions by providing cost effective opportunities to purchase quality goods and services at the best value while conducting business in a legal, fair, open, and competitive manner. COALS • Maintain and expand relationships with vendors and purchasing organizations, and promote fair and equitable opportunities for vendors. • Educate City and County departments on the services provided by Purchasing and their legal requirements and obligations. • Develop seamless procurement processes and procedures that comply with each jurisdiction's legal requirements. • Develop and utilize cost - effective methods for purchasing using best management practices and technological tools, where appropriate. • Maximize the efficiency and effectiveness of administrative policies, internal operations, and public information. • Create and maintain a positive and cooperative culture that respects employees, customers and vendors. Hire and retain professional, well trained, and knowledgeable employees. Page 7 of 7 I_1