HomeMy WebLinkAbout2010-0315 Study Session MIN
CITY COUNCIL STUDY SESSION
March 15, 2010
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MINUTES FOR CITY COUNCIL STUDY SESSION
Monday, March 15,2010
Siskiyou Room, 51 Winburn Way
Mayor Stromberg called the meeting to order at 5 :30 p.m. in the Siskiyou Room.
Councilor Navickas, Silbiger, Jackson, Voisin and Chapman were present. Councilor Lemhouse was
absent.
1. Look Ahead Review
City Administrator Martha Bennett reviewed the items on the Council Look Ahead.
2. Discussion regarding revising the public contracting code and personal services code.
Assistant City Attorney Megan Thornton gave a presentation that included:
. Public Contracting Code
. Focus
. Definition of Public Contract
. Types of Contracts
o Buying goods and services (Procurement)
o Building stuff (Public ImprovementslWorks)
o Buying special services (Personal Services)
. State Law Provide a framework for Procuring Goods and Services
o Public Contracting Code
o Attorney General Model Rules
. Basics of Public Contracting
. Autbority to Adopt Public Contracting Code
. Default under State Law
. Assumption
. GOALS: Simple, Efficient and Fair
Staff clarified the proposal would adopt rules that worked for the City and Council would determine limits.
The rules would be the same as State code with added safeguards for specific procedures.
. StatTRecommends
o Adopt the Oregon public contracting code ORS 279A (General), 279B (Procurement) and
279C (Public Improvement)
o Adopt the AttorneyGeneral model rules OAR 137-046 (General), 137-047 (Procurement)
and 137-049 (Public Improvements)
. Do not adopt 137-048 (Architects, Engineers, Surveyors, etc.)
Staff eXplained the reason for not adopting 137-048 was the code treated Architects, Engineers and
Surveyors differently. The City would formally opt out of this procedure in the proposed ordinance.
. Procurement ORS 279B & OAR 137-47
o General Rule: Formal competitive sealed bids (ITB) or competitive sealed proposals
(RFP) are required to procure goods and services, unless there is an exemption.
. Exemptions: By adopting the ORS 279B and OAR 137-47, the City will adopt the model
rules for all procurement methods, including the exemptions, such as small procurements.
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March 15, 2010
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. Does Council wisb to use the small procurement exemption to the formal process to the extent
authorized by law?
o Small Procurement Exemption (informal process) generally allows a direct award of a
contract up to $5,000.
o Intermediate Procurement Exemption (informal process) requires three informally solicited
competitive quotes and a written record and allowed for contracts $5,000 - $150,000.
o Proposed Ordinance incorporates additional safeguards into the process in AMC 2.50.100.
Currently the City limit for purchasing Goods is $75,000 and $50,000 for Personal Services. The State
statute would increase both amounts to $150,000. The minimum bid amount for competitive quotes is
three but could be more.
. Additional Safeguards for Exemptions AMC 2.50.100
o Required written findings showing grounds for an exemption exists.
o Sign off by Legal on Contract.
o Sign off by Finance on Budgeted Funds.
o Right of City Attorney, City Administrator or Local Contract Review Board (LCRB) to
compel competitive bid or proposal process.
Council expressed concern raising reporting limits to $150,000 and briefly discussed lowering the current
$75,000 reporting limitation. Staff noted lowering the amount would affect a department's ability for
immediate purchase by adding an additional two weeks to incorporate a City Council meeting. The vendor
would not guarantee price quotes.
. PP Public Improvements: Building Public Infrastructure aniJ Facilities.
o By adopting ORS 279C and OAR 137-49, the City will adopt the model rules for all
procurement methods, including the exemptions, such as small procurements and sole
source procurements.
. Does Council wish to use the small procurement exemption to the formal process to the extent
authorized by law?
o Intermediate Procurement Exemption (informal process) requires three informally solicited
competitive quotes and a written record and allowed for contracts $5,000-$100,000.
o Proposed Ordinance incorporates additional safeguards into the process in AMC 2.50.100.
. Personal Services Contracts are services that are provided by a highly educated, or
registered, or licensed professional.
o Currently personal services are governed by AMC 2.52.
o Proposal is to use the same rules for personal services used for other goods and services
under ORS 279B and OAR 137-047, with a few exceptions.
o Proposal is not to use OAR 137-048, which is the model rules for procuring architectural,
engineering, and land surveying services. .
. Personal Service Contracts: Does Council wish to allow direct award of personal services
contracts greater than $S,OOO?
o Model Rules allow direct award of personal service contracts up to $50,000 (OAR 137-
048-0200).
o Proposed Ordinance incorporates additional safeguards into the process in AMC 2.50.100.
. Personal Service Contracts - Current Process $5,000 - $50,000.
o 2.52.070 A. - three competitive written proposals from prospective contractors.
. Personal Service Contracts - Current Process over $50,000.
o 2.52.070 C.
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March 15, 2010
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o For personal service contracts that will cost $50,000 or more, the Department Head shall
award the contract based on AMC 2.50.090 (Formal RFP Process).
. Example: RFP - Engineering Services.
1. Writing Scope of Work.
2. Formal Advertising.
3. One month to answer questions and give proposers time to prepare and submit proposals
4. Pre-proposal Meetings.
5. Bid Closing.
6. 3-6 Staff members and other agencies to review proposals - normally takes a couple of
weeks.
7. Additional time to allow for contesting award of bid.
. Personal Service Contracts - Benefits of the new process:
o Projects begin sooner - it takes 2-5 months to prepare a project for award using the current
formal bidding procedure.
o Reduces costs: it takes approximately $7,000 in staff time and advertising to complete the
bid process. Based on an average of 10 projects a year, the expense of the RFP process
amounts to $70,000 per year.
o Conserves stafftime.
Staff summarized the proposal for Personal Service contracts would allow a direct award up to $50,000
with three or more solicitations in writing for projects $50,000-$100,000 and a formal RFP process for
projects over $100,000. Council discussed changing the limitation to $75,000 instead of$IOO,OOO.
The proposed thresholds for Goods and Services and Public Improvements would allow a direct award up
to $5,000, three or more bids for projects $5,000-$100,000 and a formal RFP for projects over $100,000.
Council thought the limitation should be $75,000 and discussed the possibility of requiring three or more
bids for projects in the $5,000-$75,000 range with an RFP for projects over $75,000.
Staff will prepare options and ranges for Council to review at a future meeting.
Meeting adjourned at 7:05 p.m.
Respectfully submitted,
Dana Smith
Assistant to the City Recorder