HomeMy WebLinkAboutItem 3: Ordinance on Public Contracting Regulations Changes
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: An Ordinance Concerning Public Contracting Provisions; Repealing Section
2.150 of the Eugene Code, 1971; Amending Sections 2.1420 and 2.1430 of that Code;
and Adding a New Section 2.1447 to that Code
Meeting Date: May 27, 2008 Agenda Item Number: 3
Department: Central Services Staff Contact: Jeff Perry
www.eugene-or.gov Contact Telephone Number: 682-5408
ISSUE STATEMENT
The proposed ordinance adds and deletes sections of Eugene City Code concerning public contracting.
The changes modify the Eugene Code to reflect bills approved through the 2007 Oregon Legislative
session as defined in the Oregon Public Contracting Code and consolidates specific sections of code.
BACKGROUND
On May 19,2008, a public hearing was held on the proposed ordinance. There were no members of the
public signed up to comment on the ordinance.
At the May 19 meeting, Councilor Bettman requested that the term “City Manager or Manager’s
Designee” is referenced instead of “Purchasing Agent” in regards to establishing authority for
emergency contracts. Eugene Code 2.1420 defines the “Purchasing Agent” as “the City Manager or
designee appointed to perform all or any of the duties of the Purchasing Agent…” Changing the name
from Purchasing Agent to City Manager or Manager’s Designee would create terminology
inconsistencies within the City’s Public Contracting Code.
Councilor Bettman also expressed concern that the proposed ordinance removed notification to the
council when an emergency contract has been awarded by the Purchasing Agent. Section 2.1430 (7) of
the proposed ordinance was modified to specifically reflect changes to ORS 279 B and C. The intent of
the change is to maintain consistency with Oregon Revised Statutes for awarding emergency contracts.
City staff has not identified an emergency public improvement contract in recent history and removal of
the notification requirement to the council should be a minimal change.
The City of Eugene is subject to the Public Contracting Laws of the State of Oregon. In order to
maintain compliance with Oregon Revised Statutes (“ORS”) 279 A, B and C it will be necessary to
amend Eugene Code.
The proposed ordinance concerning public contracting modifies code 2.1420 and 2.1430 and replaces
2.150 with 2.1447. The modifications require approval from the council, acting as the contract review
board. The sections modifying the code provisions by this ordinance are as follows with a brief
description.
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2.150 - Labor Contract Conditions. The ordinance consolidates language required for all public
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contracts concerning labor conditions by deleting 2.150 and adding 2.1447 related to public
contracting.
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2.1420 - Public Contract – Definitions. The ordinance modifies the definitions of “Emergency”,
“Public Contract” and “Public Improvement” to maintain consistency with the definitions
described in ORS 279A.010.
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2.1430 - Public Contracts – Solicitation Methods for Classes of Contracts.
- The term “Disabled Individuals” is changed to “Individuals with Disabilities” as described
within ORS 279A.025 .
- The competitive bid threshold for Transportation related projects is increased to
$100,000 consistent with Non-Transportation projects as defined by ORS 279C.335.
- Contracts Required by Emergency Circumstances is modified to reflect ORS 279B.080.
RELATED CITY POLICIES
None.
COUNCIL OPTIONS
The council has the following options:
1. Adopt the ordinance as drafted in Attachment A. Changes are in legislative format.
2. Adopt the ordinance as amended by Councilor Bettman's motions.
3. Make other amendments to the ordinance and adopt the amended ordinance.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends adoption of the ordinance proposed on May 19, 2008.
SUGGESTED MOTION
Move to adopt an ordinance concerning public contracting provisions; repealing Section 2.150 of the
Eugene Code, 1971; amending sections 2.1420 and 2.1430 of that code; and adding a new Section
2.1447 to that code.
ATTACHMENTS
A. Proposed Ordinance
FOR MORE INFORMATION
Staff Contact: Jeff Perry
Telephone: 682-5408
Staff E-Mail: jeff.j.perry@ci.eugene.or.us
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ATTACHMENT A
ORDINANCE NO. ___________
AN ORDINANCE CONCERNING PUBLIC CONTRACTING
PROVISIONS; REPEALING SECTION 2.150 OF THE
EUGENE CODE, 1971; AMENDING SECTIONS 2.1420
AND 2.1430 OF THAT CODE; AND ADDING A NEW
SECTION 2.1447 TO THAT CODE.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1.
Section 2.150 of the Eugene Code, 1971, is repealed.
[2.150 Labor Contract Conditions.
All contracts executed by the city wherein
labor is required, except contracts for the purchase of materials and
supplies, shall contain the following provisions:
(a)
A statement that the contract will comply with all provisions required by
the statutes of the state, of contractors on a "public contract," as
defined in ORS 279.310(1).
(b)
A statement that the contractor will comply with all of the requirements
of sections 4.615 to 4.655.
(c)
A statement that the contractor shall, in the event the contractor willfully
violates the provisions of this section, or knowingly files false affidavits
of compliance, waive for a period of one year any right to bid upon any
public works project let by the city.
(d)
If a contractor or subcontractor violates the provisions of this section,
the city manager may use the option to terminate said contract or
subcontract and said contractor or subcontractor in such event shall
forfeit all rights under the contract except to payment for actual labor
and materials furnished to the city. The city manager may waive in
whole or in part any forfeitures or sanctions provided in subsection (c)
above.]
Section 2.
The definitions of “Emergency,” “Public contract,” and “Public
improvement,” set forth in Section 2.1420 of the Eugene Code, 1971, are amended to
provide as follows:
2.1420 Public Contracts – Definitions.
The following terms used in sections
2.1400 to 2.1450 shall have the meanings set forth below.
Emergency.
Circumstances that could not have been reasonably
forseen; create a substantial risk of loss, damage or interruption of services
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or a substantial threat to property, public health, welfare or safety; and
require prompt execution of a contract to remedy the condition.
Public contract.
A sale or other disposal, or a purchase, lease, rental or
other acquisition by the city of personal property, services, including personal
services, public improvements, public works, minor alterations, emergency
construction or repair work or ordinary repair or maintenance necessary to
preserve a public improvement.
Public improvement.
A project for construction, reconstruction or major
renovation on real property by or for the city. “Public improvement” does not
include:
(a) Projects for which no funds of the city are directly or indirectly used,
except for participation that is incidental or related primarily to
project design or inspection; or
(b) Emergency construction or repair work, minor alteration, ordinary
repair or maintenance necessary to preserve a public improvement.
Section 3.
Subsections (1), (2)(b), and (7) of Section 2.1430 of the Eugene
Code, 1971, are amended to provide as follows:
2.1430 Public Contracts - Solicitation Methods for Classes of Contracts.
The
following solicitation methods and the classes of contracts that may be
awarded under such methods are hereby established by the city council.
(1) Purchases from Nonprofit Agencies for [Disabled] Individuals
with
.
Disabilities When available, the city shall purchase goods, services
and public improvements from qualified nonprofit agencies for [disabled]
individuals with disabilities in accordance with the provisions of ORS
279.835 through 279.850 and rules adopted by the purchasing agent.
(2)Public Improvement Contracts.
(b) [Non-transportation p]Public improvements up to $100,000. Public
improvement contracts [other than contracts for a highway, bridge
or other transportation project] for which the estimated contract
price does not exceed $100,000 may be awarded using an informal
solicitation for quotes in accordance with rules adopted by the
purchasing agent.
(7)Contracts Required by Emergency Circumstances.
[(a) In general. When t]The purchasing agent [determines that
immediate execution of a contract is necessary] may declare that
an emergency exists in order to prevent substantial damage or
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injury to persons or property. [, the city may execute the contract
without competitive selection and award.] The purchasing agent
shall ensure competition for a contract for the emergency
work that is reasonable and appropriate under the emergency
circumstances. The purchasing agent shall set a solicitation
time period that the purchasing agent determines to be
reasonable under the emergency circumstances and issue
written or oral requests for offers or make direct appointments
without competition in cases of extreme necessity. The
[solicitation] purchasing agent shall 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. Any contract
awarded under emergency conditions must be awarded within
60 days following the declaration of an emergency.
[(b) 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.
The purchasing agent shall notify the city council of the declaration
of emergency, if made, and the facts and circumstances
surrounding the emergency execution of the contract, as soon as
possible, in light of the emergency circumstances. Any public
improvement contract awarded under emergency conditions must
be awarded within 60 days following the declaration of an
emergency unless the city council grants an extension of the
emergency period. When the delay required to obtain a payment
or performance bond would result in injury or substantial property
damage, the purchasing agent may waive, wholly or in part, the
requirement for a payment or performance bond.]
Section 4.
A new Section 2.1447 is added to the Eugene Code, 1971, to provide
as follows:
2.1447 Public Contracts - Labor Contract Conditions. All public contracts
executed by the city wherein labor is required, except contracts for the
purchase of goods, shall contain the following provisions:
(a) A statement that the contractor will comply with all provisions
legally required of contractors on a public contract.
(b) A statement that the contractor will comply with all of the
requirements of sections 4.615 to 4.655 of this code.
(c) A statement that, in the event of a willful violation of subsection (a)
or (b) of this section, the city will penalize the contractor by
debarring the contractor for one year as permitted by state law.
(d) A statement that if a contractor or subcontractor violates the
provisions of subsections (a) or (b) of this section, the city
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manager may terminate the contract. Payment upon termination
shall be made by the city according to rules adopted by the city
manager.
Section 5.
The City Recorder, at the request of, or with the concurrence of the
City Attorney, may administratively correct any reference errors contained herein, or in
other provisions of the Eugene Code, 1971, to the provisions added, amended or
repealed herein.
Passed by the City Council this Approved by the Mayor this
____ day of _____________, 2008 ____ day of ______________, 2008
____________________________ _____________________________
City Recorder Mayor
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