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10/12/1988 Meeting
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10/12/1988 Meeting
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10/12/1988
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<br />e State or local level. As a matter of practice, however, the City does go <br /> through some form of competitive selection process. <br /> Mr. Wong said as the Public Contracts Review Board, the council has chosen to <br /> exempt classes of contracts from the Public Contract Law bid process (e.g., <br /> library materials and objects of art). <br /> Mr. Wong said in Chapter 16 of the City Charter, the City Manager is given <br /> the authority to conduct the City's business in terms of procuring materials, <br /> personnel, etc. . . He said the council can be directly involved in the <br /> contract process through its involvement in the budgeting process, by <br /> establishing policies, and by requesting an audit to check compliance with <br /> the Public Contract Law. Mr. Wong said the audit recently requested by the <br /> council will occur for FY89 activities. <br /> Mr. Wong said the issue underlying the AFSCME letter has to do with whether <br /> services provided by corporations are done by staff or by contractor. He <br /> said the issue of whether a service is provided in-house or contracted out is <br /> a management decision and a budgetary decision. Mr. Wong said as part of an <br /> agreement with AFSCME, if the City were to consider contracting for a service <br /> currently being provided by staff, the City will notify AFSCME and discuss <br /> the consequences of the change on employees with the group. He said there <br /> have been very few instances of this in the last several years. Mr. Wong <br /> said before this step is taken, a detailed cost-benefit analysis is <br /> undertaken and staff looks at the quality of services. <br />e Mr. Holmer asked if there is a City standard used to determine whether a <br /> particular service should be performed by staff. Mr. Wong said there is not <br /> a specific dollar threshold; staff does look at the margin between providing <br /> the service in-house versus contracting for it. He said if the margin were <br /> greater than 10-15 percent, staff would look seriously at the options. Mr. <br /> Gleason said staff constantly conducts cost-of-service analyses. Mr. Wong <br /> said liability issues as well as State and Federal regulations are also <br /> considered when deciding whether to provide a service in-house or contract <br /> for it. <br /> David Biedermann, Finance staff, said there are five major steps in any <br /> procurement process no matter how formal or informal cit is: defining the <br /> need, defining the marketplace, selecting the appropriate process for the <br /> procurement, carrying out the procedures, and executing the contract. <br /> Mr. Biedermann described the steps in a formal bid process. He said the <br /> first step is to define the need. This is done by meeting with those who <br /> will be using the product or who will be affected by procurement of the <br /> product. This helps ensure that the product will meet the needs of the <br /> users. Next, staff refines the wording of the specifications to be certain <br /> it reflects the type of product wanted. When the wording is refined, a <br /> requisition is issued. Mr. Biederman said that staff continually consults <br /> with suppliers at this stage of the process to find out what is available in <br /> the market and what products would best meet the City.s needs. <br />e MINUTES--Eugene City Council October 12, 1988 Page 5 <br />
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