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Home My WebLink About2000-14 Exempt BidsRESOLUTION NO. 2000- 93-35 Recitals: A. The city council sitting as the Local Contract Review Board adopted competitive bidding rules in 1993 which have not been significantly updated sinca that time. B. Amendments to competitive bidding statutes Oregon Revised Statutes Chapter 279, effective in the latter part of 1999, significantly changed the method and manner of competitive bidding. C. ORS 279.049(5) provides that cities may adopt rules of procedure for public contracts which may include portions of the model rules adopted by the Attorney General (the "model rules"). THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The following rules are adopted as the city's public contracting rules. The following rules take precedence over the model rules: 1. DEFINITIONS: For purposes of these rUles, unless the context requires otherwise, the following words and phrases mean: 1.1. Administrator means the City Administrator, 1.2. Advertising contracts mean contracts for securing announcements in newspapers or magazines, dudng telecommunications broadcasts, upon billboards, through distribution of handbills, by direct mail, or through other mass media. To the extent that the model rules for competitive bidding allow more than this definition for advertising contracts, the model rules do riot apply to the city. 1.3. City means the City of Ashland. 1.4. Council means the Ashland Ci!Y Council. 1.5. Emergency means circumstanCes that were not reasonably foreseen by the Council or city administrator and that create a substantial dsk of loss, damage or interruption of essential services; a threat to public health, safety or the environment that requires prompt execution of a contract to remedy the condition. 1.6. Model rules mean the rules adbpted by the State of Oregon Attorney General pursuant to ORS 279.049. 2. STATUTORY EXEMPTIONS: As provided by ORS 279.015, all public contracts shall be based upon competitive bids except: PAGE 1-RESOLUTION (F:\USER~PAUL\qRD~LCRBVeviSe bidding rule~ projectS00 revision Of LCRB rules 00 ~nal.wpd) 2.1. Contracts made with other public agencies or the Federal Government. 2.2. Contracts made with qualified nonprofit agencies providing employment opportunities for disabled individuals. 2.3. A contract for products, services or supplies if the value of the contract is less than $5,000. 2.4. Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and 414.145. 2.5. When emergency conditions require prompt execution of the contract. 2.6. If a project is competitively bid and all responsive bids from responsible bidders exceed the city's cost estimate, the Purchasing Agent may negotiate with the lowest responsive, responsible bidder, pd0r to awarding the contract, in order to solicit value engineering and other options to attempt to bring the project within the city's cost estimate. A negotiation with the lowest res, ponsive, responsible bidder pursuant to this paragraph shall not result in the award of the contract to that bidder if the scope of the project is significantly changed from the original bid proposal. Notwithstanding any other provision of law, the records of a bidder used in contract negotiation pursuant to this paragraph are not subject to public inspection until after the negotiated contract has been awarded or the negotiation process has been terminated. Regardless of whether a contract is exempt from bidding or not, no services or work may be performed and no goods, supplies or equipment may be delivered, until a city purchase order has been issued or a fullyexecuted wdtten contract has been delivered to the city. This requirement may be waived, however, when circumstances exist that create substantial risk of loss. damage, inlerruption of services or threat to public health or safety and that require prompt action to protect the interests of the city. 3. ADDITIONAL EXEMPTIONS: The Council finds the following contracts exempt from competitive bids upon these findings: It is Unlikely such exemptions will encourage favoritism or substantially diminish competition. The Council also finds that the awarding of public contracts pursuant to the exemptions will result in substantial cost savings. 3.1. Contracts under $75.000. Contracts not to exceed $75,000 for the purchase of goods, materials, supplies and services if the Purchasing Agent has determined that the awarding of the contract without formail competitive bidding will result in cost savings and the following conditions are complied with: 3.1.1. The contract is for a single project, and is not a component of or related to any other project; 3.1.2. When the amount of t~e contract is more than $5,000, but less than $75,000, a minimum of three competitive quotes shall be obtained. The Purchasing Agent shall keep a writ en record of the source and amount of the quotes received. If three quotes are not available, a lesser number will suffice provided that a wdtten record is made of the effort to obtain the quotes; 3.2. Contracts for Pdce Regulated tems or Supplier Regulated Items. Contracts for the purchase of goods or services where the rate or pdce for the goods or services being purchased is established by federal, state or local regulating authority. PAGE 2-RESOLUTIO N (~:~USSR~.AU,~q.m. CRSW,~L-. ~i~ .~. ,~'~00 ~i~i~ <~ LCRS ~ 0o ,.a,..~) 3.3. CoDvdqhted matedais. Contracts for the purchase of copydghted matedais where there is only one supplier available within a reasonable purchase area for such goods. 3.4. Advertisina Contracts. ContraCts for the purchase of advertising including that intended for the purpose of giving public or legal notice. 3.5. ReQuirements Contracts. Purchases of goods or services pursuant to a requirements contract which was established by competitive bidding. Purchases may also be made at pdces established by a requirements contract or other agreement between another public body and a contractor if the requirements contract or other agreement was established by competitive bidding. 3.6. Investment Contracts. Contracts for the purpose of investment of public funds or the borrowing of funds. 3.7. Single Seller or Pdce or ProduCt Required. Contracts for purchase where there is only one seller or pdce of a product of the quality required available within a reasonable purchase area. 3.8. RePair or Conversion Contracts for the purchase of services, equipment or supplies for maintenance, repair or conversion of existing equipment if required for efficient utilization of such equipment. 3.9. Contract Amendments. Any contract amendment including change orders, extra work, field orders, or other change in the odginal specffications which changes the odginal contract pdce or alters the work to be performed, may be made with the contractor subject to the following conditions: 3.9.1. The odginal contract imposes and binding obligation on the parties covedng the terms and conditions regarding changes in the work; or 3.9.2. The amended contract does not substantially alter the scope or nature of the project; or 3.9.3. If the amendment has the effect of substantially altering the scope or nature of the project, the amount of the aggregate cost change resulting from all amendments creating such new}obligations shall not exceed 20% of the initial contract. 3.10. Bankinq Services. Contracts for the prccurement of banking services. 3.11. City Services. Matedais and Products. Contracts for purchase or sale of water, electricity, cemetery lots, cable anc~ telecommunication services and the sale of telecommunication materials or products Or other services, materials or products traditionally provided by the City. 3.12. Surplus Property. The sale of surplus property if the number, value and net revenue. 4. ReQuest for Proposals. The Purchasing Agent may use request-for-proposal com- petitive procurement methods subject to the following conditions: 4.1. Contractual requirements are Stated cleady in the solicitation document. 4.2. Evaluation cdteda to be applied in awarding the contract and the role of an evaluation committee are stated cleady In the solicitation document. Cdteria used to identify the proposal may include but are nOt limited to cost, quality, service, compatibility, product reliability, operating efficiency and expansion potential. PAGE 3-RESOLUTI ON (F:%USER~PAUL~(3RDM. CRBVevise bidding rates projecffiXI revision of LCRB plies 00 final.wpd) 4.3. Solicitation document cleady States all complaint processes and remedies available. 4.4. Solicitation document states the provisions made for vendors to comment on any specifications which they feel limit competition. 4.5. The selection process shall not inhibit competition or encourage favoritism and will result in cost savings to the city. 5. EMERGENCY CONDITIONS: The Council, by resolution, may exempt any contract from competitive bidding if emergency conditions require prompt execution of the contract. The Council shall, in the resolution, state with specfficity the emergency conditions necessitating the prompt execuiion of the contract. 5.1. The administrator, by declaration, may exempt any contract under $50,000 from competitive bidding if emergency codditions require prompt execution of the contract. The administrator shall make written findings describing the emergency conditions necessitating prompt execution', of the contract. 5.2. If an emergency is declared, a~ty contract awarded under this rule must be awarded within 60 days following the declaration of the emergency unless the Council grants an extension. 6. CONTRACT REVIEW BY DIRECTOR OF FINANCE: The Director of Finance shall establish internal procedures for the review, processing and listin9 of all contracts, whether competitively bid or exempted from bidding. Such review shall include a method for determining compliance with these rules. The Director of Finance may exempt certain classes of contracts from t~e requirements of this rule if the Director determines that such contracts are insignificant or would not materially affect the purpose of this rule. This resolution was read by title only in accordance with Ashland Municipal Code PASSE~d~~~ §2.~ ADOPTED this ~ day of ~ Barbara Christensen, City Recorder ,2000. SIGNED and APPROVED this Paul Nolte, City Attomey day 0f ~ ,2000. · Shaw, Mayor PAGE 4-RESOLUTION (F:\USER%PAUL\ORD~LCRB~revise bidding rules project00 revision Of LCRB lules 00 final,wpd)