The following classes of public contracts and the method(s) that are approved for the award of each of the classes are hereby established by the City Council.
(A) Purchases from nonprofit agencies for disabled individuals. The city shall give a preference to goods, services and public improvements available from qualified nonprofit agencies for disabled individuals in accordance with the provisions of ORS 279.835 through 279.850.
(B) Public improvement contracts.
(1) Any public improvement. Public improvement contracts in excess of $500 to be made by a private contractor shall be let to the lowest responsible bidder for the contract and shall be done in accordance with plans and specifications approved by the Council.
(2) Alternate contracting methods. Alternate contracting methods as design-build, energy savings performance contracts, and construction manager/general contractor are not accepted forms of contracting methods under the City Charter. The model rules providing for alternate contracting methods, OAR 137-049-0630 to 137-049-0690, are not adopted as public contracting rules for the city.
(3) City-funded privately-constructed public improvements. The city may contribute funding to a privately-constructed public improvement project without subjecting the project to competitive solicitation requirements if all of the following conditions are met with respect to the entire public improvement project:
(a) The city's contribution to the project may not exceed 25% of the total cost of the project;
(b) The city must comply with all applicable laws concerning the reporting of the project to the Bureau of Labor and Industries as a public works project;
(c) The general contractor for the project must agree in writing to comply with all applicable laws concerning reporting and payment of prevailing wages for the project;
(d) The funds contributed to the project may not provide a pecuniary benefit to the owner of the development for which the project is being constructed, other than benefits that are shared by all members of the community;
(e) The performance of the general contractor and the payment of labor for the project must be secured by performance and payment bonds or other cash-equivalent security that is acceptable to the Purchasing Manager to protect the city against defective performance and claims for payment; and
(f) The contract for construction of the project must be amended, as necessary, to require the general contractor to maintain adequate workers compensation and liability insurance and to protect and provide indemnification to the city for all claims for payment, injury or property damage arising from or related to the construction of the project.
(C) Personal services contracts.
(1) Any personal services contract. Personal services contracts in any amount may be awarded under a publicly advertised request for competitive sealed proposals.
(2) Personal service contracts not exceeding $150,000. Contracts for personal services for which the estimated contract price does not exceed $150,000 may be awarded using an informal solicitation for proposals.
(3) $75,000 award from qualified pool. Contracts for personal services for which the estimated contract price does not exceed $75,000 may be awarded by direct appointment without competition from a qualified pool.
(4) Personal service contracts not exceeding $25,000 per year. Contracts for which the Solicitation Agent estimates that payments will not exceed $25,000 in any fiscal year or $150,000 over the full term, including optional renewals, may be awarded under any method deemed in the city's best interest by the Solicitation Agent, including by direct appointment.
(5) Personal service contracts for continuation of work. Contracts of not more than $150,000 for the continuation of work by a contractor who performed preliminary studies, analysis or planning for the work under a prior contract may be awarded without competition if the prior contract was awarded under a competitive process and the Solicitation Agent determines that use of the original contractor will significantly reduce the costs of, or risks associated with, the work.
(D) Contracts for goods and services.
(1) Any procurement. The procurement of goods or services, or goods and services in any amount may be made under either an invitation to bid or a request for proposals.
(2) Procurements up to $150,000. The procurement of goods or services, or goods and services, for which the estimated contract price does not exceed $150,000 may be made under an informal solicitation for either quotes or proposals.
(E) Contracts subject to award at Solicitation Agent's discretion. The following classes of contracts may be awarded in any manner which the Solicitation Agent deems appropriate to the city's needs, including by direct appointment or purchase. Except where otherwise provided, the Solicitation Agent shall make a record of the method of award.
(1) Advertising. Contracts for the placing of notice or advertisements in any medium.
(2) Amendments. Contract amendments shall not be considered to be separate contracts if made in accordance with the public contracting regulations.
(3) Animals. Contracts for the purchase of animals.
(4) Contracts up to $5,000. Contracts of any type for which the contract price does not exceed $5,000 without a record of the method of award.
(5) Copyrighted materials; library materials. Contracts for the acquisition of materials entitled to copyright, including, but not limited to works of art and design, literature and music, or materials even if not entitled to copyright, purchased for use as library lending materials.
(6) Equipment repair. Contracts for equipment repair or overhauling, provided the service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing.
(7) Government regulated items. Contracts for the purchase of items for which prices or selection of suppliers are regulated by a governmental authority.
(8) Insurance. Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and 414.145.
(9) Non-owned property. Contracts or arrangements for the sale or other disposal of abandoned property or other personal property not owned by the city.
(10) Sole source contracts. Contracts for goods or services which are available from a single source may be awarded without competition.
(11) Specialty goods for resale. Contracts for the purchase of specialty goods by the city for resale to consumers.
(12) Sponsor agreements. Sponsorship agreements, under which the city receives a gift or donation in exchange for recognition of the donor.
(13) Structures. Contracts for the disposal of structures located on city-owned property.
(14) Renewals. Contracts that are being renewed in accordance with their terms are not considered to be newly issued contracts and are not subject to competitive procurement procedures.
(15) Temporary extensions or renewals. Contracts for a single period of one year or less, for the temporary extension or renewal of an expiring and non-renewable, or recently expired, contract, other than a contract for public improvements.
(16) Temporary use of city-owned property. The city may negotiate and enter into a license, permit or other contract for the temporary use of city-owned property without using a competitive selection process if:
(a) The contract results from an unsolicited proposal to the city based on the unique attributes of the property or the unique needs of the proposer;
(b) The proposed use of the property is consistent with the city's use of the property and the public interest; and
(c) The city reserves the right to terminate the contract without penalty, in the event that the city determines that the contract is no longer consistent with the city's present or planned use of the property or the public interest.
(17) Used property. A Solicitation Agent, for procurements up to $20,000, and the Purchasing Manager, for procurements in excess of $20,000 may contract for the purchase of used property by negotiation if such property is suitable for the city's needs and can be purchased for a lower cost than substantially similarly new property. For this purpose the cost of used property shall be based upon the life-cycle cost of the property over the period for which the property will be used by the city. The Purchasing Manager shall record the findings that support the purchase.
(18) Utilities. Contracts for the purchase of steam, power, heat, water, telecommunications services, and other utilities.
(F) Contracts required by emergency circumstances.
(1) In general. When an official with authority to enter into a contract on behalf of the city determines that immediate execution of a contract within the official's authority is necessary to prevent substantial damage or injury to persons or property, the official may execute the contract without competitive selection and award or City Council approval, but, where time permits, the official shall attempt to use competitive price and quality evaluation before selecting an emergency contractor.
(2) Reporting. An official who enters into an emergency contract shall, as soon as possible, in light of the emergency circumstances, (1) document the nature of the emergency; the method used for selection of the particular contractor and the reason why the selection method was deemed in the best interest of the city and the public, and (2) notify the City Council of the facts and circumstances surrounding the emergency execution of the contract.
(3) Emergency public improvement contracts. A public improvement contract may only be awarded under emergency circumstances if the purchasing agent has made a written declaration of emergency. Where the time delay needed to obtain a payment or performance bond for the contract could result in injury or substantial property damage, the
Purchasing Agent may waive the requirement for all or a portion of required performance and payment bonds.
(G) Federal purchasing programs. Goods and services may be purchased without competitive procedures under a local government purchasing program administered by the United States General Services Administration ("GSA") as provided in this division.
(1) The procurement must be made in accordance with procedures established by GSA for procurements by local governments, and under purchase orders or contracts submitted to and approved by the Purchasing Agent. The Solicitation Agent shall provide the Purchasing Manager with a copy of the letter, memorandum or other documentation from GSA establishing permission to the city to purchase under the federal program.
(2) The price of the goods or services must be established under price agreements between the federally approved vendor and GSA.
(3) The price of the goods or services must be less than the price at which such goods or services are available under state or local cooperative purchasing programs that are available to the city.
(4) If a single purchase of goods or services exceeds $150,000, the Solicitation Agent must obtain informal written quotes or proposals from at least two additional vendors (if reasonably available) and find, in writing, that the goods or services offered by GSA represent the best value for the city. This paragraph does not apply to the purchase of equipment manufactured or sold solely for military or law enforcement purposes.
(H) Cooperative procurement contracts. Cooperative procurements may be made without competitive solicitation as provided in the Oregon Public Contracting Code.
(I) Surplus property.
(1) General methods. Surplus property may be disposed of by any of the following methods upon a determination by the Solicitation Agent that the method of disposal is in the best interest of the city. Factors that may be considered by the Solicitation Agent include costs of sale, administrative costs, and public benefits to the city. The Solicitation Agent shall maintain a record of the reason for the disposal method selected, and the manner of disposal, including the name of the person to whom the surplus property was transferred.
(a) Governments. Without competition, by transfer or sale to another city department or public agency.
(b) Auction. By publicly advertised auction to the highest bidder.
(c) Bids. By public advertised invitation to bid.
(d) Liquidation sale. By liquidation sale using a commercially recognized third-party liquidator selected in accordance with rules for the award of personal services contracts.
(e) Fixed price sale. The Solicitation Agent may establish a selling price based upon an independent appraisal or published schedule of values generally accepted by the insurance industry, schedule and advertise a sale date, and sell to the first buyer meeting the sales terms.
(f) Trade-in. By trade-in, in conjunction with acquisition of other price-based items under a competitive solicitation. The solicitation shall require the offer to state the total value assigned to the surplus property to be traded.
(g) Donation. By donation to any organization operating within or providing a service to residents of the city which is recognized by the Internal Revenue Service as an organization described
in section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
(2) Disposal of property with minimal value. Surplus property which has a value of less than $500, or for which the costs of sale are likely to exceed sale proceeds may be disposed of by any means determined to be cost-effective, including by disposal as waste. The official making the disposal shall make a record of the value of the item and the manner of disposal.
(3) Personal-use items. An item (or indivisible set) of specialized and personal use, other than police officer's handguns, with a current value of less than $100 may be sold to the employee or retired or terminated employee for whose use it was purchased. These items may be sold for fair market value without bid and by a process deemed most efficient by the Purchasing Manager.
(4) Police officers' handguns. Upon honorable retirement from service with the city, a police officer may purchase the handgun that she or he was using at the time of retirement. The purchase price shall be the fair market value of the handgun as determined by an independent appraisal performed by a qualified weapons appraiser. An officer electing to exercise this option shall notify the city at least 30 days prior to his or her expected retirement date and request an appraisal of the handgun. Upon receipt of the appraisal fee from the officer, the city shall arrange for the appraisal. A copy of the completed appraisal shall be provided to the officer, who shall have up to 30 days from the date of retirement to purchase the handgun for the appraised fair market value.
(5) Restriction on sale to city employees. City employees shall not be restricted from competing, as members of the public, for the purchase of publicly sold surplus property, but shall not be permitted to offer to purchase property to be sold to the first qualifying bidder until at least three days after the first date on which notice of the sale is first publicly advertised.
(6) Conveyance to purchaser. Upon the consummation of a sale of surplus personal property, the city shall make, execute and deliver, a bill of sale signed on behalf of the city, conveying the property in question to the purchaser and delivering possession, or the right to take possession, of the property to the purchaser.
(J) Concession agreements.
(1) General. No part of a concession agreement shall contain or constitute a waiver of any generally applicable rules, code provisions or requirements of the city concerning regulation, registration, licensing, inspection, or permit requirements for any construction, rental or business activity.
(2) Classes of contracts eligible for award without competition. The following concession agreements may be awarded by any method deemed appropriate by the Solicitation Agent, including without limitation, by direct appointment, private negotiation, from a qualified pool, or using a competitive process.
(a) Contracts under $5,000. Contracts under which the Solicitation Agent estimates that receipts by the city will not exceed $5,000 in any fiscal year and $50,000 in the aggregate.
(b) Single event concessions. Concessions to sell or promote food, beverages, merchandise or services at a single public event shall be awarded based on any method determined by the Purchasing Manager to provide a fair opportunity to all persons desiring to operate a concession, but in which the promotion of the public interest and success of the event shall be of predominant importance.
(3) Competitive award. Concession agreements solicited by the city for the use of designated public premises for a term greater than a single event shall be awarded as follows:
(a) Small concessions. For concession agreements for which the concessionaire’s projected
annual gross revenues are estimated to be $500,000 or less, the Purchasing Manager has discretion to use either an informal solicitation or formal request for proposals process applicable to contracts for personal services. If the proposals received indicate a probability that the concessionaire's annual gross revenues will exceed $500,000, the Solicitation Agent may, but shall not be required to, reissue the solicitation as a request for proposals.
(b) Major concessions. Concession agreements for which the concessionaire's projected annual gross revenues under the contract are estimated to exceed $500,000 annually shall be awarded using a request for proposals.
(Ord. 2104, passed 3-28-05; Am. Ord. 2129, passed 1-22-07)