024-18 - Resolution - Acknowledging and Correcting Past Contract Procurement and Contract Management Policy DeficienciesRESOLUTION NO. 024-18
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, BOTH
ACKNOWLEDGING AND CORRECTING PAST CONTRACT PROCUREMENT AND
CONTRACT MANAGEMENT POLICY AND PROCEDURE DEFICIENCIES.
WHEREAS, on December 20, 2016, pursuant to the results of the FY 2015 Audit, the Port
Orchard City Council adopted Resolution No. 086-16 (Standards of Conduct and Written
Procedures), thereby acknowledging the City's need to update previously written contract
procurement policies and procedures, including policies where federal funding rules are
applicable, and describing the methods and procedures to be followed moving forward that are in
accordance with both state and federal funding standards; and
WHEREAS, on March 30, 2017, the City Clerk's Office developed new, written contract
procurement and management policies and procedures on selecting, preparing and processing
contracts, change orders, and contract amendments, which include procedures on effectively
managing contracts prior to their expiration date; and
WHEREAS, on April 25, 2017, the Port Orchard City Council adopted Resolution No. 019-
17, thereby adopting the City's official contract procurement and management policies and
procedures guidance document, which clearly establishes all forms of appropriate contract
procurement and management policies and procedures, including procurement authority limits
and procedures to assure that bid laws are adhered to and the City's assets are safeguarded
from unauthorized expenditures; and
WHEREAS, on September 18, 2017, it was brought to the Public Works Department's
attention, during the Project Management Review (PMR) process performed by the WSDOT
Highways/Local Programs Office for both the Tremont Street Widening and Bay Street
Pedestrian Pathway Projects, that certain time periods of contracts associated with those
projects had lapsed, bringing to light that the City lacked adequate contract management
procedures; and
WHEREAS, on September 18, 2017, during the same PMR review, it was also brought to
the City's attention that the City lacked an appropriate contract procurement policy during the
initial securing of contracts for the Tremont Street Widening and Bay Street Pedestrian Pathway
Projects; and
WHEREAS, via proposed amendments to the referenced contracts, and by following the
now established internal contract management procedures, the City will correct the contract
lapse concerns; and for future contract awards, the City will follow the now clearly established
and appropriate procurement and management policies and procedures for all forms of
contract procurement; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
Resolution No. 024-18
Page 2 of 2
THAT: The City has corrected the contract procurement concerns raised by
the PMR review process by adopting contract procurement policies and
procedures for all forms of City contract procurement.
FURTHER THAT: The City has corrected the contract lapse concerns raised
by the PMR review process by establishing internal procedures for managing
all City contracts.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 22nd day of May 2018.
insuu, Mayor
ATTEST:
Brandy Rinearson, MMC, City Clerk