Chapter 3.05
PUBLIC CONTRACTING
Sections:
3.05.030 Exemptions from competitive procurement.
3.05.040 Personal services contracts rules.
3.05.050 Disposition of surplus personal property.
Legislative history: Ord. 688.
3.05.010 Adoption of rules.
The following (hereinafter “these rules”) shall be public contracting rules for the city of Myrtle Creek. Except as provided within these rules, public contracting by the city shall be governed by the public contracting code and the model rules. The Myrtle Creek city council is the city’s contract review board (board). Except as otherwise provided in these rules, the powers and duties of the contract review board will be exercised by the city council and the powers and duties given or assigned to contracting agencies will be exercised by the city council. The city council may, through formal action, from time to time delegate its powers to conduct certain procurements to various members of its staff.
The city administrator is authorized to contract for personal, professional and consulting services and to purchase goods and services pursuant to this chapter without prior approval of the city council when the amount of the contract is less than $25,000. [Ord. 854, 2023; Ord. 11-005, 2011; Ord. 739 § 1, 2005].
3.05.020 Definitions.
As used herein, the following phrases have the following meanings. (All words and phrases not defined herein shall have the meanings ascribed to them in the public contracting code or in the model rules.)
“Contracting agency” means the city and includes any person authorized by the city council to conduct a procurement on behalf of the city.
“Personal services contract” means a contract for services that require specialized technical, artistic, creative, professional or communication skills or talent, unique and specialized knowledge, or the exercise of discretionary judgment skills, and for which the service depends on attributes that are unique to the service provider, other than contracts for an architect, engineer, land surveyor or provider of related services as defined in ORS 279C.100. Contracts for personal services include but are not limited to the following contracts or classes of contracts:
(1) Accountants and auditors;
(2) Appraisers;
(3) Computer consultants;
(4) Lawyers;
(5) Insurance consultants;
(6) Training consultants;
(7) Investigators;
(8) Management system consultants. [Ord. 854, 2023; Ord. 739 § 2, 2005].
3.05.030 Exemptions from competitive procurement.
The following contracts and classes of contracts are exempt from the competitive procurement requirements of the public contracting code and the model rules and may be awarded as provided herein, or otherwise in any manner which the contracting agency deems appropriate including by direct appointment or purchase:
(1) Contracts up to $25,000. Any procurement of goods or services or any combination thereof not exceeding $25,000 may be awarded in any manner deemed practical or convenient by the contracting agency, including by direct selection or award. Procurements shall not be artificially divided or fragmented so as to constitute a smaller procurement than specified in this section.
(2) Contracts up to $250,000. Any procurement of goods or services or any combination thereof, other than public improvement contracts, exceeding $25,000 but not exceeding $250,000, may be awarded using the following procedures for informal solicitation in lieu of the procedures set forth in the model rules:
(a) Solicitation of Offers. When authorized by these regulations, an informal solicitation may be made by general or limited advertisement to a certain group of vendors, by direct inquiry to persons selected by the contracting agency, or in any other manner which the contracting agency deems suitable for obtaining competitive quotes or proposals. The contracting agency shall deliver or otherwise make available to potential offerors a written scope of work, a description of how quotes or proposals are to be submitted and description of the criteria for award.
(b) Award. The contracting agency shall attempt to obtain a minimum of three written quotes or proposals before making an award. If the award is made solely on the basis of price, the contracting agency shall award the contract to the responsible offeror that submits the lowest responsive quote. If the award is based on criteria other than, or in addition to, price, the contracting agency shall award the contract to the responsible offeror that will best serve the interest of the city, based on the criteria for award.
(c) Records. A written record of all persons solicited and offers received shall be maintained. If three offers cannot be obtained, a lesser number will suffice; provided, that a written record is made of the effort to obtain the quotes.
(3) Equipment Repair. Contracts for equipment repair or overhauling may be awarded without competition, provided the service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing.
(4) Sole Source Contracts. Contracts for goods or services which are available from a single source may be awarded without competition.
(5) Renewals. Contracts that are being renewed in accordance with their terms are not considered to be newly awarded contracts and are not subject to competitive procurement procedures.
(6) Temporary Extensions or Renewals. Contracts for the temporary extension or renewal of a single period of one year or less of an expiring and nonrenewable, or recently expired, contract, other than a contract for public improvements, are not subject to competitive procurement procedures.
(7) Contracts Required by Emergency Circumstances.
(a) In General. When an official with authority to enter into a contract on behalf of the contracting agency determines that immediate execution of a contract within the official’s authority is necessary to prevent substantial damage or injury to persons or property, the official may execute the contract without competitive selection and award, but, where time permits, the official shall attempt to use competitive price and quality evaluation before selecting an emergency contractor.
(b) Reporting. An official who enters into an emergency contract shall, as soon as possible, in light of the emergency circumstances, (i) 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 contracting agency and the public; and (ii) notify the city council of the facts and circumstances surrounding the emergency execution of the contract.
(c) Emergency Public Improvement Contracts. A public improvement contract may only be awarded under emergency circumstances if the contracting agency has made a written declaration of emergency. Any public improvement contract award under the emergency conditions must be awarded within 60 days following the declaration of an emergency unless the contracting agency grants an extension of the emergency period. Where the time delay needed to obtain a payment or performance bond for the contract could result in injury or substantial property damage, the contracting agency may waive the requirement for all or a portion of required performance and payment bonds.
(8) State Law Exemptions. There shall be an exemption for any other contract or class of contract exempted by the public contracting code or the model rules.
(9) Other Exemptions Adopted in Future. There shall be an exemption for any other contract or class of contracts expressly exempted from competitive procurement requirements pursuant to procedures permitted by the public contracting code or the model rules.
(10) Public Improvements. Public improvement contracts estimated by the contracting agency not to exceed $100,000, or not to exceed $50,000 in the case of a contract for a highway, bridge or other transportation project, may be awarded by competitive quotes under the following procedures:
(a) The contracting agency shall informally solicit at least three price quotes from prospective contractors. If three prospective contractors are not available, then fewer quotes may be solicited, and the contracting agency shall maintain records of the attempts to obtain quotes.
(b) The contracting agency shall award the contract to the prospective contractor whose quote will best serve the interests of the contracting agency, taking into account price and other applicable factors, such as experience, specific expertise, past record of performance and conduct, availability, familiarity with local area and access to local resources, project understanding, contractor capacity, and contractor responsibility. If the contract is not awarded on the basis of the lowest price, the contracting agency shall make a written record of the basis for the award.
(c) A procurement may not be artificially divided or fragmented to qualify for the informal contract award procedures provided by this section. [Ord. 854, 2023; Ord. 11-005, 2011; Ord. 739 § 3, 2005].
3.05.040 Personal services contracts rules.
Personal services contracts (other than a personal services contract for an architect, engineer, land surveyor or provider of related services) are subject to the rules established by this section:
(1) All personal services contracts shall contain all contract provisions mandated by state law. These provisions may be incorporated in the personal services contract by reference to state law, unless state law provides otherwise. The attorney for contracting agency when requested will prepare model contract provisions for use in personal services contracts.
(2) The following procedures shall be observed in the selection of personal services contractors:
(a) For personal services contracts involving an anticipated fee of $25,000 per annum, the contracting agency may negotiate a contract for such services with any qualified contractor the contracting agency selects.
(b) For personal services contracts involving an anticipated fee of more than $25,000 per annum, the contracting agency shall solicit prospective contractors who shall appear to have at least minimum qualifications for the proposed assignment, notify each prospective contractor in reasonable detail of the proposed assignment, and determine the prospective contractor’s interest and ability to perform the proposed assignment.
(c) The contracting agency may arrange for any or all interested prospective contractors to be interviewed for the assignment by an appropriate employee or by an interview committee.
(d) Following a review of the qualifications and interview, where conducted, of the interested prospective contractors, the contracting agency shall select the prospective contractor, and shall prepare a personal services contract.
(3) Some or all of the following criteria shall be considered in the evaluation and selection of a personal services contractor:
(a) Experience in the type of work to be performed.
(b) Familiarity with the local area and access to local resources.
(c) Capacity and capability to perform the work, including any specialized services within the time limitations for the work.
(d) Educational and professional record, including past record of performance on contracts with governmental agencies and private parties with respect to cost control, quality of work, ability to meet schedules, and contract administration, where applicable.
(e) Any other factors relevant to the particular contract.
(4) The above provisions regarding selection procedures and criteria do not apply to renewals, amendments or modifications of existing personal services contracts.
(5) The selection procedures described in this section may be waived by the contracting agency at its discretion where an emergency exists that could not have been reasonably foreseen and requires such prompt execution of a contract to remedy the situation that there is not sufficient time to permit utilization of the selection procedures. [Ord. 854, 2023; Ord. 739 § 4, 2005].
3.05.050 Disposition of surplus personal property.
Disposition of surplus personal property may be made, at the discretion of the contracting agency, under provisions of the public contracting code or the model rules or under the provisions of this section:
(1) General Methods. Surplus property may be disposed of by any of the following methods upon a determination by the contracting agency that the method of disposal is in the best interest of the city. Factors that may be considered by the contracting agency include costs of sale, administrative costs, and public benefits to the city. The contracting agency shall maintain a record of the reason for the disposal method selected, and the manner of disposal, including the name of the person to whom the surplus property was transferred.
(a) Governments. Without competition, by transfer or sale to another city department or public agency.
(b) Auction. By publicly advertised auction to the highest bidder.
(c) Bids. By publicly advertised invitation to bid.
(d) Liquidation Sale. By liquidation sale using a commercially recognized third-party liquidator selected in accordance with rules for the award of personal services contracts.
(e) Fixed Price Sale. The contracting agent may establish a selling price based upon an independent appraisal or published schedule of values generally accepted by the insurance industry, schedule and advertise a sale date, and sell to the first buyer meeting the sales terms.
(f) Trade-In. By trade-in, in conjunction with acquisition of other price-based items under a competitive solicitation. The solicitation shall require the offer to state total value assigned to the surplus property to be traded.
(g) Donation. By donation to any organization operating within or providing a service to residents of the city which is recognized by the Internal Revenue Service as an organization described in Section 501(c) of the Internal Revenue Code of 1986, as amended.
(2) Disposal of Property With Minimal Value. Surplus property which has a value of less than $500.00, or for which the costs of sale are likely to exceed sale proceeds, may be disposed of by any means determined to be cost-effective, including by disposal as waste. The official making the disposal shall make a record of the value of the item and the manner of disposal.
(3) Restriction on Sale to City Employees. City employees shall not be restricted from competing, as members of the public, for the purchase of publicly sold surplus property, but shall not be permitted to offer to purchase property to be sold to the first qualifying bidder until at least three days after the first date on which notice of the sale is first publicly advertised. [Ord. 854, 2023; Ord. 739 § 5, 2005].
3.05.060 Negotiations.
If bids or quotes are solicited for a public improvement contract, and all bids or quotes exceed the budget for the project, the contracting agency may, prior to contract award, negotiate for a price within the project budget under the following procedures:
(1) Negotiations will begin with the lowest responsive and responsible bidder or proposer. If negotiations are not successful, then the contracting agency may begin negotiations with the second lowest responsive bidder or proposer, and so on.
(2) Negotiations may include value engineering and other options to attempt to bring the project cost within the budgeted amount.
(3) A contract may not be awarded under this section if the scope of the project is significantly changed from the description in the original solicitation or bid documents.
(4) The contracting agency will adhere to the provisions of ORS 279C.340 in applying this section. [Ord. 854, 2023; Ord. 739 § 6, 2005].