Loading...
HomeMy WebLinkAboutOrdinance No. 19574ORDINANCE NO. 19574 AN ORDINANCE REGULATING PUBLIC CONTRACTS; AMENDING SECTIDNS 2.1200, 2.1205, 2.1210, AND 2.1215 OF THE EUGENE CODE, 1971; ADDING SECTIONS 2.1220, 2.1225, 2.1230, 2.1240, 2.1245, 2.1250 AND 2.1255 TO THAT CODE; AND DECLARING AN EMERGENCY. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Based upon the record and findings before the Council Sections 2.1200, 2.1205, 2.1210, and 2.1215 of the Eugene Code 1971 are hereby amended, and Sections 2.1220, 2.1225, 2.1230, 2.1240 2.1245 2.1250 s > and 2.1255 added thereto, to read and provide: Public Contracts 2.1200 Public Contracts - Council Desi Hated Local Board. The council is hereby designated the local contract review board for the cit and as provided in sections 2.1200 to y ' 2.1255 of this code, shall exercise all powers and duties granted to a local contract review board b state law. y 2.1205 Public Contracts - Cit Mang er and Cit Contracts. The cit mana er or the mana er's d ~ y g g es~gnee shall be the contracting and purchasing agent for the c7ty, and ~s hereby authorized to award all cit contracts for which there is an a ro ~ ~ y pp pr~at~on. The award of city public con- tracts shall conform to this code and to the mandates of state law relatin to the awardin of ublic contracts, g g p 2.1210 Public Contracts - Purchasin A ent Re ulations. The purchasing agent may develop forms and promulgate rules, re u- lations, rocedures and modific t' g p a ions thereto reasonably necessary to accar~- plish the purposes of sections 2.1200 to 2.1255 of this code and re ulatio adopted thereunder, In rom g ns p ulgating such rules, regulations and procedures, the purchasing agent shall: ~a} Establish procedures that do not encourage favoritism or substantially diminish competition; fib} Determine that there wi l 1 be a substanti al cost soul n s to the cit and g Y~ ~c} Consider other factors such as the public policy encour- ag~ng compet7t7an; the type, cast and amount of the contract; the number of persons available to bid; market realities; and modern or innovative contracting and purchasing methods. Ordinance - 1 2.1215 Public Contracts - Council Re ulatians. ~1} Sections 2.1200 to 2.1255 declare the regulations and policies of the council regarding: ~a} Public contracts or classes of public contracts exempt from competitive bidding; ,fib} The use of brand name, mark, manufacturer or seller in public contract specifications; ~c} Exemption and waiver of bid security or performance bonds on public contracts or classes of contracts; ~d} Hearing and determination of appeals from the decision of the city manager regarding disqualification of bidders far public contracts; and, fie} Other policy matters relating to the award of public contracts where rulemaking discretion is imposed by law upon the council . ~2} Before adopting the regulations and policies required by sub- sect~on ~1} of this section or any modification thereto, the proposed ordi- nance shall be placed on a regular council meeting agenda and public testi- mony invited thereon. After which, the council shall adopt, modify, or reject the ordinance. ~3} As part of the city's annual audit the city manager's a li- cation and erformance of the ' ' ~ ~ ~ pp p council s regulations and pol~c~es regarding city contracts and of the purchasing agent's rules, regulations and roce- dures shat 1 be reviewed, p 2.1220 Public Contracts - Definitions. As used in sections 2.1204 to 2.1255: Bid. A competitive offer in which price, delivery for pro- Oect camplet~on} and conformance to specifications will be the predominant award criteria; or a competitive proposal in which other criteria in addition to price, delivery and conformance to specification are the dominant award criteria. Formal bid. R procedure i n which written sealed bids are solicited by advertising using bidding instructions, specifica- tions, and are opened at an announced place, date and time. Formal notation. A procedure in which written bids are soli- cited by advertising or other writing stating the quantity and quality of goads or services to be acquired, and which bids are received by the city on ar before a stated date. Goads. Except for works of art, any tangible personal prop- erty including but not 1 i mi ted to materials, supplies and equip-~ ment. lnfarmal quotation. A procedure in which written or verbal bids are gathered by correspondence, te1e hone or ersana] contact. p p Lowest res ons~ble bid. The bid that ~s found to be the most acceptable vn the basis of: ~a} Provision of the goads or services that substan- tially comply with all prescribed pubic bidding procedures and requirements, and bid specifications; fib} Provision of the goods or services at the lowest cost to the city of those bids which meet ~a}; ~c} Vendor qualifications to execute and perform the Ordinance - 2 contract to supply those goods or services; ~d} Conformance to Other published criteria which will be the dominant criteria used in evaluating the bids received. Personal services contract. A contract with an independent contractor predominantly for services requiring special training or certification, independent judgment, skill and experience. it may include but is not limited to a contract for the services of professionals, performing artists, visual artists, consultants, researchers, and computer programmers. Public contract. Any purchase, lease or sale by the city of personal property, public improvements or services except personal service contracts. Public improvement. Projects for construction, recanstruc- t~on or mayor renovation on real property by or for the city. "Public improvement" does not include emergency work, minor altera- t~on, ordinary repair, or maintenance necessary in order to pre- serve a pub1~c improvement. "Public improvement" also does not include improvements mandated by the city when it issues a permit for work affecting the public way as ,defined in section 7.290 of this code or when it sells or leases real property and retains no right to occupy the real property except upon default of the pur- chaser ar except by easement. Purchasin a ent. The city manager or the manager's designee. visual artists. Practitioners in the visual arts who are gen- erally recognized by critics and peers as professionals of serious intent, and who produce works of art. Works of art. All forms of original creations of visual art, including but not limited to: Paintin : all media, including both portable and perman- ently affixed or integrated works such as murals. Scut ture: in the round, bas-relief, high relief, mobile, fountain, kinetic, electronic, etc. in any material or combina- tion of materials. Prints, clay, drawings, stained glass, mosaics, photogra- phy, fiber and textiles, wood, metal, plastics and other materials ar combination of materi a1 s, calligraphy, and mixed media, any combination of forms of media, including collage. 2.1225 Public Contracts - Cam etitive 8iddin . ~1} Except as provided in sections 2.1220 to 2.1255, al] public contracts sha11 be based upon competitive bids and awarded to the lowest responsible bidder. ~2} The purchasing agent shall maintain a record of all public contracts awarded including those exempt under section 2.1230. Except for contracts under $2,500, the record shall include the bids solicited and re- ceived and determinations made by the purchasing agent. 2.1230 Public Contracts - Exem bons and Classifications. . ~1}, The following classes of public contracts are exempt from com- pet~t~ve b~dd~ng as public contracts that do not encourage favoritism or Ordinance - 3 substantially diminish competition and that result in substantial cost sav- ings: ~a} Contracts made with other governmental agencies; fib} Contracts made with qualified nonprofit agencies provid- ing employment opportunities for the handicapped; ~c} Contracts determined by the purchasing agent to be avail- able only through a sole supplier of gaols, services, or both; ~d} Contracts for which the prices or suppliers are estab- lished by governmental regulatory authorities; fie} Contracts far the purchase or commissioning of works of art; ~f} Contracts for the purchase of library materials, includ- ing but not l~m~ted to books, periodicals, sound or video record- ings, films, film strips, maps and other printed or published materi a1 s , fig} Contracts for the purchase of personal property, public improvements or services that are based upon contracts currently in farce awarded by any other public agency that is governed by state competitive bidding requirements. ~h} Contracts far insurance, including emp]oyee benefit in- surance. ~i} Contract amendments for additional goods, services, or both, ar for changes in the original specifications which increase the original contract price, provided: 1. The original contract terms and conditions apply to the performance of the amendments; or 2. The cost of all amendments does not exceed 10°/~ of the original contract price. This 10°le limitation may be increased an add~t~onal 10°/~ upon determination by the purchasing agent that it is not reasonably feasible to require additional bid- ding to complete the purpose of the contract. ~d}. 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 testin . g ~k} Contracts far goods purchased for resale to consumers. ~2} The following classes of public contracts are hereby created and when the procedure for each class is followed such contracts do not encourage favoritism nor substantially diminish competition and do result in substantial cost savings: ~a} Contracts under $2,500. The purchasing agent shall estab- lish the procedures for awarding contracts less than $2,500 in value for goods, services, or both, or for public improvements; fib} Contracts $2,500 to $10,000. All contracts for an amount which ~s valued $2,500 or more but less than $10,000 shall be based on informal quotations unless in the discretion of the purchasing agent the nature of the proposed contract requires formal quota- tions or formal bids. The purchasing agent shall seek quotations from a sufficiently large number of potential bidders to Insure sufficient competition to meet the best interests of the city and shall award the contract after receiving at least three responsive quotes. An award based on receiving less than three quotes may be made only on a.determination by the purchasing agent that potential bidders were given a reasonable opportunity to submit quotes. Ordinance - 4 ~c} Contracts $10,000 to $50,000. A]1 contracts for an amount which is valued $I0,000 or more but less than $50,000 shall be based on formal quotations unless in the discretion of the purchas- ing agent the nature of the proposed contract requires formal bids. Unless the purchasing agent determines that mai]ed invitations wi11 notify a sufficiently large number of potential bidders to insure sufficient competition to meet the interests of the city ar that an invitation published in a trade journal will give better notice to potential bidders, the solicitation of formal quotations shall be published at least once in a newspaper of general circulation in the Eugene area. ~d} Contracts over $50,000. All contracts for $50,000 value or more shall be based an formal bids. The solicitation for bids shall be published at least once in a newspaper of general circula- tion in the Eugene area and if the proposed contract is for a public improvement, the solicitation shall also be published in a trade newspaper of general state-wide circulation. The purchasing agent shall avoid purchasing practices which segregate a public contract ~nta contracts of lesser amounts for the sole purpose of avoiding the regulations of this subsection. ~3} The council may exempt from competitive bidding a certain public contract after considering: ~a} The nature of the project; fib} The estimated cost of the project; ~c} The cost savings anticipated by the exemption and the reasons competitive bidding would be inappropriate; ~d} Proposed alternative contracting and purchasing practices to be employed; and fie} The estimated date by which it would be necessary to let the contract; and after determining that granting the exemption is unlikely to encoura e favoritism or subst g ant~ally dim~n~sh competition for public contracts and will result in substantial cost savings to the city. ~4}, ~a} As used in this subsection: "advertised" means any public notice reasonably calculated to inform the prospective purchasers most likely to pay the highest price; and a "liquidation sale" occurs when the purchasing agent establishes a fixed sale price and terms far each item based on current market value, when the item is sold to the first qualified buyer meeting the sale terms, and when the personal property is displayed at a retail business open to the public during retail shopping hours or at a location which has been advertised as the place of the liquidation sale. fib} when it is declared surplus by the purchasing agent, all personal property which the city has acquired shall be: 1. Traded in on the purchase of replacement equipment or goads; 2. Sold to highest bidder at an advertised public auc- tion or after an advertised call for bid; 3. Sold at liquidation sale if the price of each item is $2,500 or less; or 4. In default of bids from others, sold at private sale without further advertising or taking of bids. The purchasing agent shall select the method of disposa] which maximizes the Ordinance - 5 value the city will realize from disposal of the surplus property. ~5} When the purchasing agent finds an emergency exists because of circumstances that could not have been reasonably foreseen which require prompt action and that prompt acquisition of goods, services or both is necessary or desirable for. the safety, well bung or preservation of life or property, ~s}he may waive any Of the requirements of sections 2.1220 to 2.1245 when awarding a public contract. when a contract for $25,000 or more is awarded after such a waiver, at the next meeting of the council following the waiver, the purchasing agent shall submit a written report stating with specificity the emergency conditions necessitating prompt execution, the pro- visions waived, the public contracts far $25,000 or more awarded under this subsection, and the length of time the emergency conditions are expected to persist. Upon rece~v~ng the purchasing agent's report required by this sub- sect~on, the council may modify or reject the decisions of the purchasing agent. 1n any event, any contract awarded under this subsection must be awarded within 60 days following the declaration of the emergency by the pur- chasing agent, unless the council grants an extension. Furthermore, the cost of contracts awarded under this subsection shall not exceed the unexpended appropriation for operating contingencies. At the conclusion of emergency authorization, the purchasing agent shall submit to the council another written report of the public contracts awarded under waivers for $25,OV0 or more during the emergency. 2.1240 Public Contracts - S ecificatians; Use of Brand Name or Mark. ~~} Unless the product is exempt under subsection 2.12402} or ~3}, spec~f~cat~ons for public contracts shall not expressly or im licitl p y require any product by brand name or mark, nor the product of any particular manufacturer ar seller. ~2} Specifications far pubic contracts may require a product by brand name or mark, ar the product of a particular manufacturer or seller if: ~a} The product is copyrighted; fib} There is only one manufacturer or seller of the product of the quality required; or ~c} The efficient use of existing equipment or supplies re- qu7res acqu~s~t~on of compatible equipment or supplies, ~3} Specifications for public contracts may require a product by brand name or mark, or the product of a particular manufacturer or seller if the purchasing agent finds: ~a} It is unlikely that the exemption will encourage favor- ~tism ~n awarding the public contract yr substantially diminish competition for public contracts; and fib} The specification yields substantial savings to the city. ~4} A prospective bidder may, up to five days before the deadline for receiving bids, appeal ~n writing to the council any specification adopted pursuant to subsection ~3}. The notice of appeal shall state the reasons for the protest and any proposed changes to the specifications. Unless the appellant and the council agree to a longer period, an appeal shall be heard within 15 days of the receipt of the notice of intent to appeal. At least 10 days before the hearing, the city manager shall mail notice of the time and location of the hearing to the appellant. The council shall hear and deter- mine.the appeal on.the basis of the appellant's written statement, the pur- chas~ng agent's written report of his or her findings and the praduct~s} Ordinance - 6 specified, and any additional evidence the council deems appropriate, The council may permit the appellant to present testimony and oral argument. The bid apen~ng date shall be extended if necessary to a11ow consideration of the appeal and issuance of addenda to bid documents. 2.1245 Public Contracts - Exem tion and waiver of Bid and Performance Bonds, ~1} The purchasing agent may require bid security and a good and sufficient performance and payment bond even though the contract is of a class previously exempted from the requirement. ~2} Except as provided in subsections 2.12453} to 2.12455}, all public contracts are exempt from the requirements for bid security and good and sufficient band to secure performance of the contract and payment of the obligations incurred in the performance. ~3} All public improvement contracts for $50,000 or more shall require bid security. ~4} All public improvement contracts for $10,000 ar more shall require good and sufficient bands to assure performance of the contract and payment of the obligations incurred in the performance. Far public improve- ment contracts awarded under subsection 2.12305}, the purchasing agent may waive the requirements of this subsection 2.12454} unless upon receiving the purchasing agent's report regarding the emergency conditions the council requires otherwise. 2.1250 Determination of Dis ualification. The purchasing agent shall determine the sufficiency of qualifications far all bidders. This determination may be done anytime prior to awarding the contract. 2.1255 Public Contracts - A eals of Dis ualificatian. ~1} Any person disqualified by decision of the purchasing agent may appeal the disqualification to the council upon written notice of appeal filed with the city manager. The notice shall be filed within three business days after receipt of the notice of disqualification and shall state specifi- cally wherein there was error by the purchasing agent. ~2} The council or its designee shall conduct a de novo hearing on the appeal pursuant to sections 2.392 to 2.400. 1f a designee of the council conducts the hearing, ~s}he shall prepare a written report far the council containing the hearing record and proposed findings and a recommended action. Upon review of the designee's report the council shall act on the appeal. The council shall not be bound by the designee's findings or recom- mendations. The council shall decide the appeal within 20 days after the city manager receives the notice of appeal, and shall set forth reasons for its decision in writing. The time limit in this subsection may be extended with the consent of the appellant and the council. ~3} The council may affirm, reverse, or modify the decision of the purchasing agent, specifying in writing the reasons for its decision. Section 2. The City Recorder, at the request of, or with the concur- Ordinance - l rence of the City Attorney, may administratively correct any reference errors in this Ordinance ar other provisions of the Eugene Code, 1971, to the provisions amended or added herein. Section 3. Any contract awarded under Sections 2.1200 to 2.1215 of the Eugene Code, 1911 and Ordinance No. 19301 or under state public contract law is not void or voidable because of the provisions of this Ordinance if the bid ar quotation an the contract is solicited before the effective date of this Ordinance and the public contract is awarded thereon within 120 days of the effective date of this Ordinance. Section 4. That matters concerning public contracts and personal ser- vices contracts affect the health, safety and welfare of the citizens of the City, and in order to insure the orderly implementation of the provisions contained herein, an emergency is hereby declared to exist, and this Ordi- nance sha11 became effective immediately upon its passage by the Council and approval by the Mayor. Passed by the City Council this Toth day of August, 1958 ~--- ~9.~. o~,ZCCi y Recorder Ordinance - S Approved by the Mayor this FINDINGS IN SUPPORT OF PROPOSED PUBLIC CONTRACTING ORDINANCE (SECTIONS 2.1200 TO 2.1255 OF THE EUGENE CODE, 1971} All references herein, unless otherwise noted are to the Eu ene Code 1971. g ' 1. Because of the fallowing situations certain city contracts identified in the proposed Subsection ~.1230~1} are found to be exem t from com eti ' biddin and in ro o p p t~ve g p p sed Subsection ~.1230~2} found to be exempt from formal compet~t~ve b~dd~ng procedures because strict compliance with the ublic con- tract law ~s l~kel to result in ~ p Y, e unnecessary expense to the City without furthering the public policy of encouraging com etition: p ~a} When goads and services of the quality desired are available only through a single source. To avoid unnecessar Bela in rocurement rocedures and y y p p to allow the Council to focus on policy rather than ad- m~n~strat~ve detail, the investigation and determination that there is only a single source shall be the responsibility of the urchasin Because of the b ' ~ ~ p g agent. pu lac policy supporting compet~t~on and because com eti- t~on generally exists ~n the market p place, the use of the sole source exemption should be limited. fib} Goods and services for which prices are set b overnment 1 regulation. For exam le: ~ ~ .y g ~ a p procurement of utility services and inter- state freight services which are subject to local, state or federal regulation. ~c} Works of art. Because of aesthetic jud ments re uired wh g q en purchasing works of art and because of the uni ue talents of artis ~ nvo] ved the Ci t ~ q is y has established a reasonable procedure for urchas- ~ng or comm~ss~on~n works of r p g a t ~n Sect~ans 2.638 to 2.648. ~d} Library materials for the 1 i brary cal 1 ecti on. Because o co ri ht 1 f py .g aw and other factors that control the market far librar materials and because of the uni ue y q obl~gat~on to select library mater- ials that match the community need and patron interest the mast libr ~ ~ purchase of ary materials for the 1~brary collection ~s not com at~ble with competitive biddin , p g ,fie} Public contracts by other government a encies sub'ect to ubl ~c contract 1 w ~ g ~ P, a . When ~t ~s to the City's advantage to use current bids received by another public agency that is sub'ect to and ' ubl i c bid ' ~ ~ ab~ ded by p ding requirements, there is na need for the Cit to en a e in additional ubl~c biddin fo ~ y, g g P g r ~dent~cal items. By basing its contracts far the purchase of personal property, public im rovements or s ' erv~ ces on contracts awarded by other public agencies, the City saves the expense of public b~dd~ng and may enjoy quantity discounts. At the same time, competition is not substantially diminished. ~f} Insurance services and contracts. Ac uisition of insurance ~ ncl ud~ n em 1 ~ q ~ ' g p oyee benefits insurance, requires unique methods of gathering proposals, analysis and comparison of rvviders. Because p Findings - 1 personal service by the insurance company to the City and its em to ees is such a critical fact p .y or, the purchase of insurance ~s not compatible with standard competitive bidding procedures. Use of an a ent of . g record or requ~r~ng a spec~f~c insurance contract is a reasonable common practice in the insurance industry that provides an efficient and effective process for gathering information about service, cost and adm~n~strat~on. ' alternative methods of selecting the provider or administrator result in stronger management of cast and service and therefore greater benefit far dollars spent, ,fig} Contract changes. During the course of performin some ubl~c contracts whe g p. n ~t becomes apparent that changes in the spe- c~f~cations or quantities are required or that modifications to the work being performed are required and that it is less costl to the ubl~c to ad ust the e ' y p ~ x~sting public contract rather than suspend the work and call for new bids the purchasing agent needs within limits some flexibility for adjusting public contracts at a time the work is being performed. Further, before some public contracts are undertaken it is impossible to fully ascertain the nature of the gaols and services required. Therefore, within limits, it is in the public interest to a11ow amendments, change orders or modifications to public contracts previously awarded rather than to terminate work on public contracts long enough to allow going throu h a com etitive bid rocess . Al i o ' g p p wing adjustment of contract work not to exceed 10% of the contract amount is a common and reasonable standard in man public a encies. Further h v' ~ y g a Ong the purchasing agent review the situation before exceeding the 10% limit assures administrative accountability and protects the public interest without burdenin the council with more s ecial m ~ • ~ g p eet~ngs and adm~n~strat~ve detail and delaying performance of public contracts. ~h} Certain repair contracts. when the City's a ui ment must be re aged and o q p p verhauled, the cost and nature of the repair often cannot be determined without extensive preliminary dismantlin of the a ui ment. Further g q p specially trained personnel may be required who are available from only one source, Therefore, it is in the publ ~ c interest to avoid the delay and useless ex ense involved i n a com etitive .p p bldd~ng process for equipment repa~,r contracts when the nature of the malfunction or worn parts cannot be ascertained prior to beginning the work, ~i} Contracts for less than $2,504. ORS 279,015 d authorizes ~} a public agency to exclude from compet~t~ve bidding all cantracts for supplies with a value less than $2,500, if formal com etitive bids based on detai 1 ed p spec~ficat~ons and advertised solicitation of bid were used to award all public cantracts under $2,500, the cost of procurement would be disproportionate to any benefit received from competitive bids. Beyond the classification of public contracts set forth herein, the purchasing agent is qualified to establish roce- dures for such contract p s that reasonably balance the value of compe- titive bids with the administrative costs. ~ Purchases for resale. When acquiring goods for resale Findings - 2 to consumers ~e.g. specialty and novelty goods for public events or depicting public facilities or environs of a locality, supplies far classes offered by the City}, the City's ability to purchase quality goods far specific events or purposes requires the purchasing agent to act promptly without competitive bids. ~k} Because of the public cast of preparing, soliciting, and awarding public contracts, the farmal7ty required in obtaining compe- titive bids may be adjusted according to the estimated contract price. The classifications in proposed Subsection 2.12302} represent a rea- sonable balance of the cost of administration and the cost of the con- tract and the benefit. Nothing in the proposed classifications prevents the purchasing agent from requiring greater formalities in bidding when the public interest so dictates. Because of the foregoing situations, the classes of contracts described in the proposed Subsections 2.12301} and 2.12302} are unlikely to encourage favoritism in the awarding of public contracts or substantially diminish com~ petition for public contracts and further that the awarding of such public contracts should result in substantial cost savings to the City. In making these determinations the Council has considered the type, cost, amount of the contract, the number of persons available to bid, the City's historic contracting practices and experience. 2; There exists an on-going need for the City to dispose of its surplus goods ~n a convenient, ~nexpens~ve procedure that does not require the Council's attention. The methods of disposal set forth in the proposed Sub- section 2.12304} are intended to give broad latitude to the ways the pur- chasing agent conducts the statutorily approved liquidation sales and to authorize other methods of disposal and marketing which may be unique to individual pieces of surplus goods without burdening the Council in admin- istrative matters. This,propased subsection also encourages competition, does not encourage favor~t~sm, reduces costs, and reflects market realities. More revenues or net cost savings should be realized if the purchasing agent may take into account the nature of the personal property to be sold and the market that will yield the highest return to the City when determining the method of disposal of surplus goods. The purchasing agent is qualified to select the established method for disposal of City personal property. 3. Mast emergency situations arise at a time when it is difficult to assemble the Council in a timely manner to authorize waiver of the public contract law. To facilitate emergency work that must be done, the purchasing agent needs authority to act and then provide the Council with an accounting of the actions taken, as provided in the proposed Subsection 2.12305}. Eugene Code, 1971. 4. Proposed Subsection 2.1240~Z}~a} exempts copyrighted material since the only way to clearly identify such material is by the name given the material . Adopted by the Council the 14th day of August, 1988. ~_ ~i' City Recorder Findings -- 3