ATTACHMENT 1 RESOLUTION 16-29

Transcription

1 ATTACHMENT 1 Resolution Page 1 of 5 RESOLUTION A RESOLUTION OF THE LAKE OSWEGO CITY COUNCIL REPEALING THE 2005 LAKE OSWEGO PUBLIC CONTRACT RULES; ADOPTING THE 2016 LAKE OSWEGO PUBLIC CONTRACT RULES, INCLUDING CLASS EXEMPTIONS; AND RE-DELEGATING AUTHORITY TO THE CITY MANAGER TO AWARD CERTAIN CONTRACTS AND INTERGOVERNMENTAL AGREEMENTS. WHEREAS, ORS 279A.065(5) and 279A.070 authorizes a public contract review board to adopt and from time to time amend rules of procedures that a public contracting agency will use for public contracts, which may modify portions of the model rules of public contracting adopted by the Oregon Attorney General (OAR 137, Divisions -046, -047, -048, and -049) (Model Rules); and except where amended, the Model Rules apply; WHEREAS, the Lake Oswego City Council is the Public Contract Review Board for the City of Lake Oswego, pursuant to ORS 279A.060; WHEREAS, the 2005 (LOPCRs) were adopted in lieu of the Model Rules but were in large part based upon the Model Rules because it was found there were administrative, legal and financial advantages to maintaining public contract procedural rules similar to the Model Rules, and further that potential bidders are also benefited if the public contract procedural rules for the City of Lake Oswego are similar to the Model Rules; WHEREAS, there have been annual modifications to the Model Rules since 2005; WHEREAS, the City Council finds that maintaining separate public contracting rules that are similar, but not identical to the Model Rules results in bidder uncertainty as to what substantive modifications may exist in the LOPCRs as compared to the Model Rules, and results in staff time maintaining separate, but similar public contracting rules, and that it would be more convenient to staff and more transparent to bidders to adopt specific Lake Oswego public contracting rules to modify the Model Rules only when necessary to address specific concerns, in a form that is easy for the bidder to ascertain modifications from the Model Rules; WHEREAS, the Lake Oswego City Council, acting as the Lake Oswego Local Public Contract Board, may adopt class special procurement rules, to establish a contracting procedure that differs from the contracting procedures established by ORS 279B.055, -.060, 065, and -070 over time for a specified class of goods or services, subject to at least one public notice of the approval process being given in a newspaper of general circulation, pursuant to ORS 279B.060(4) and 279B.055(4); WHEREAS, pursuant to ORS 279C.335(4) and other related statutes, public notice of a public hearing for the consideration of the adoption of this Resolution, and the accompanying 2016 LOPCRs, was given on June 10, 2016 (a date not less than 14 days prior to the date of the hearing), in the Portland Daily Journal of Commerce, a trade newspaper of general statewide circulation; and

2 WHEREAS, a public hearing was held on the date of adoption of this resolution, and persons had the opportunity to appear and present comment; and WHEREAS, the City Council finds that repealing the current LOPCRs and re-adopting only those rules: That have specific Lake Oswego purposes, e.g., existing contract class exemptions (LOPCR [2016]), with one proposed amendment to the class exception construction when concurrent with privately-funded improvements (adding public utility construction to existing street construction)(lopcr (2)(b) [2016]), or When deemed to add certainty to the public contracting process that is not found currently in the Model Rules, would result in improved transparency of the public contracting process, resulting in greater competition, and award of contracts to qualified contractors at a competitive price; and WHEREAS the City Council finds that the City Manager should continue to be authorized to enter into: Contracts with governmental entities for goods, materials, services, personal services, public improvements, and public works the same as if the contract was made with private vendors and service providers; and Mutual aid agreements with other governmental entities, provided service within the City is not significantly impacted; and Agreements with other governmental entitles to implement Council polices, for the expenditure or receipt of grant funds, and contracts which are at no or minimal cost to the City. BE IT RESOLVED as follows: Section 1. Findings. a. The above recitals are adopted as findings in support of this resolution. b. The Council s prior findings regarding class exemptions adopted in 2005, attached as Exhibit A, are readopted because the class exemptions from competitive bidding for certain public contracts are being reorganized but retained in exact wording from the 2005, with one minor modification (see subsection c below). c. As to the modification to add public utility to the existing class exemption from competitive solicitation for public improvement work that is occurring concurrent with privately-funded street work, LOPCR (2)(b) / (2)(b) (LO), the Council finds that for the same reasons that public street work being performed concurrently with adjacent private street work by the same contractor was found not likely to encourage favoritism in the awarding of public improvement contracts or substantially diminish competition for public improvement contracts, and result in substantial cost savings, the addition of public utility Resolution Page 2 of 5

3 work would similarly not encourage favoritism or substantially diminish competition, and likely result in substantial cost savings. Section 2. Repeal of 2005 Lake Oswego Public Contracting Rules, Sections ; Adoption of the 2016 Lake Oswego Public Contracting Rules, including modifications of the Oregon Attorney General Model Public Contracting Rules as applied to the public contracting procedures for the City of Lake Oswego. The Lake Oswego City Council, acting as the Lake Oswego Public Contract Review Board, pursuant to ORS 279A.065, hereby: a. Repeals the 2005, Sections 101, 102, 103, and 104, effective for all public contracts first advertised, but if not advertised then entered into, on or after August 1, 2016; b. Adopts the 2016, Divisions 46 (LO), 47 (LO), 48 (LO), 49 (LO) and 50 (LO) attached as Exhibit B, as modifying and supplementing the Oregon Attorney General Model Public Contracting Rules (OAR , -047, -048, and -049). c. Acknowledges that the Oregon Attorney General Model Public Contracting Rules (OAR , -047, -048, and -049), shall become effective as the public contracting rules of the City of Lake Oswego on the date stated in subsection (a) above, except as modified and supplemented by the 2016, Divisions 46 (LO), 47 (LO), 48 (LO), and 49 (LO). Section 3. Delegation of Authority to Award Contracts and Contract Amendments. The Lake Oswego City Council hereby continues its delegation of authority to the City Manager, or City Manager s designee, to award contracts and amendments to contracts, as set forth in the attached LOPCR (see Div (LO)). Section 4. Intergovernmental Agreements and Grants. The Lake Oswego City Council hereby continues it delegation of authority to the City Manager, or City Manager s designee, to execute the following types of intergovernmental agreements and contracts with other governmental entities: a. Intergovernmental Agreements for the budgeted purchase of materials, supplies, equipment, vehicles, services, personal services, public improvements, and assets, when a Public Contracting Officer would be authorized to award a contract under the LOPCRs and Model Rules to a non-governmental vendor or provider of service, if the contract had been solicited to private vendors and service providers. [This delegation of authority may be reflected in the LOPCR (LO) for ease of reference by the City Manager or City Manager s designee, however that does not render intergovernmental agreements thereby subject to the requirements of the Oregon Public Contracting Code or the LOPCRs. i.e., grants, including intergovernmental grants, are exempt from the application of the Public Contracting Code by ORS 279A.010(1)(z) and 279A.025(2)(d)]. Resolution Page 3 of 5

4 b. Intergovernmental Agreements for allocation of existing equipment and personnel, such as mutual aid agreements or involvement in dedicated task forces, if such agreement does not significantly impact the City s ability to provide services within its own boundaries. c. Intergovernmental Agreements implementing Council policy decisions. d. Grant Agreements for which the funds are included in the budget and includes grants where the city will either donate or receive funds. The City Manager or City Manager s designee may submit applications to receive grants. e. Contracts by which the City receives materials or services at no or minimal costs, such as Americorp, Work Study, or Job Corps programs. Section 5. Power of City Recorder to make editorial changes to City of Lake Oswego Contracting and Purchasing Procedures, when approved by the City Attorney. The Lake Oswego City Council, acting as the Lake Oswego Public Contract Review Board, empowers the City Recorder to make certain editorial changes and corrections in the LOPCRs, provided such changes are approved by the City Attorney, and further provided that such changes shall not alter the sense, meaning, affect, or substance of any rule or procedure. Said changes and corrections may include the following: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Numbering and re-numbering sections and parts of sections of rule or procedure, either as enacted or as codified; Changes in the wording of headnotes; Rearrangements of sections; Changes of reference numbers to agree with renumbered chapters, sections and statutes; Substitutions of the proper subsection, section, chapter, or other division numbers; Omission of figures or words which are merely repetitious; Changes of capitalization and punctuation for purposes of uniformity; Correction of manifest clerical or typographical errors; Update changes in references resulting from a change in the statutory number or subsection in the Oregon Revised Statutes or Oregon Admininistrative Rules; Update cited statutory or administrative rule language set forth by footnote. Section 6. This Resolution shall become effective July 5, // // Resolution Page 4 of 5

5 Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 5 th day of July, AYES: NOES: EXCUSED: ABSTAIN: ATTEST: Kent Studebaker, Mayor Anne-Marie Simpson, City Recorder APPROVED AS TO FORM: David D. Powell, City Attorney Resolution Page 5 of 5

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16 EXHIBIT B-1 TO RESOLUTION LAKE OSWEGO PUBLIC CONTRACT RULES 2016 Division 46 (LO) GENERAL PROVISIONS RELATED TO PUBLIC CONTRACTING (LO) (LO) Definitions for the Rules (LO) Public Contracting Officer s Policies and Guidelines (LO) Class Special Procurement Exemptions (LO) Awarding Authority for Contracts, Amendments and Intergovernmental Agreements Page 1 - Division 46

17 DIVISION 46 (LO) General Provisions Relating to Public Contracting (LO) [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] (1). The consist of the divisions of the Oregon Administrative Rules (OAR) Chapter 137 listed in subsection (2) below ( Model Rules ), except as amended or supplemented by LOPCR Rules. The Model Rules and LOPCR Rules set forth the rules of procedure for public contracting of the City of Lake Oswego and the Lake Oswego Redevelopment Agency. (2). The Model Rules consist of the following divisions of the Oregon Administrative Rules (OAR) Chapter 137 ( Model Rules ) then current at the time of the act: a. Division 46 General Provisions Relating to Public Contracting b. Division 47 Public Procurement for Goods or Services c. Division 48 Consultant Selection: Architectural, Engineering, Land Surveying, and Related Services (including Transportation Planning and Photogrammetric Mapping) d. Division 49 General Provisions Related to Public Contracts for Construction Services, (3). The amendment or supplement of a Model Rule is shown by redline revisions to the text of the rule; new text is shown by double underline, and deleted text is shown by strikethrough. (4) The Model Rules shall prevail, except when a LOPCR amends or supplements a Model Rule. (5). References in the Model Rules applicable to State Contracting Agency, are not applicable to either the City of Lake Oswego or to the Lake Oswego Redevelopment Agency. (6). Identification of Model Rules Amended or Supplemented. a. Sections of the Model Rules that are amended or supplemented are identified by reference to its Division and Section number. Example: LOPCR Definitions amends and supplements OAR Ch. 137, Division 46, Section 0110 [OAR ]. b. A Lake Oswego Public Contract Rule that is not amending or supplementing a Model Rule, but is in addition to the Model Rules, is identified by (LO) following the Section number. Example: LOPCR (LO) Public Contracting Officer s Policies and Guidelines. (7). Citation to Rules. a. Citation to a Model Rule may be referred to by its Oregon Administrative Rule reference number. Example: OAR Page 2 - Division 46

18 b. Citation to an amendment or supplement to the Model Rule may be referred to by its Lake Oswego Public Contract Rule ( LOPCR ) reference number. Example: LOPCR c. When a Rule cites to a Model Rule, and the cited Model Rule has been amended or supplemented by these rules, the citation to the Model Rule shall be deemed to include any amendments or supplements to it under these Rules. (8). Disposition of Surplus Personal Property. LOPCR Division 50 describes procedures for sale of surplus personal property owned by City. (9). The City Recorder shall make the publicly available by compiling the LOPCR rules and Model Rules in such manner as the City Recorder deems to be informative to the public. (10) These Rules become effective and apply to Public Contracts first advertised, but if not advertised then entered into, on or after August 1, (LO) Definitions for the Rules [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] The definitions in OAR apply to the Model Rules and to these LOPCR Rules, unless (a) the context of a specifically applicable definition in these rules, the Model Rules, or the Public Contracting Code requires otherwise, or (b) the definition of the term is modified below. These definitions superseded the same word s definition in the Model Rules. (1) Board or Local Contract Review Board means the Lake Oswego City Council, acting as the Lake Oswego Public Contract Review Board or the Lake Oswego Redevelopment Agency Public Contract Review Board, as applicable. (2) Contracting Agency or Local Contracting Agency shall means, as applicable: 1. The City of Lake Oswego, in regards to any contract solicited or awarded by the City of Lake Oswego; or 2. The Lake Oswego Redevelopment Agency ( LORA ), in regards to any contract solicited or awarded by LORA. When a rule requires an act is to be performed by the Contracting Agency, i.e., issue Solicitation Documents, evaluate bids and proposals, award Contracts that are within the authority of the City Manager or LORA Executive Director, or designee, per LOPCR , make written findings, issue forms, the act shall be performed by the PCO of the Contracting Agency. (3) Contract Review Authority, means the Board. (4) Emergency means circumstances that: a. Create a substantial risk of loss, damage or interruption of services or a substantial threat to property, public health, welfare or safety; and b. Require prompt execution of a contract to remedy the condition. (5). Model Rules are the Oregon Administrative Rules (OAR) Chapter 137, Divisions (See LOPCR (2)). (6). Personal Services Contract or Contract for Personal Services means: Page 3 - Division 46

19 a. A Contract or member of a class of Contracts that the Board has designated as a personal services contract pursuant to ORS 279A.055; or b. A contract or member of a class of contracts, other than a Contract for the services of an Architect, Engineer, Land Surveyor, or Provider of Related Services (as defined in ORS 279C.100), whose primary purpose is to acquire specialized skills, knowledge and resources in the application of technical or scientific expertise, or the exercise of professional, artistic or management discretion or judgment, including, without limitation, a contract for the services of: i. accountant; attorney; educator, land use planner; appraiser or surveyor, physician or dentist; commercial pilot; aerial photographer; information technology consultant, or other consultant, or ii. broadcaster or artist (including a photographer, filmmaker, painter, weaver or sculptor). The PCO shall have discretion to determine whether a particular type of contract or service falls within the foregoing definitions. (7) Public Contracting Officer or PCO means the City Manager of the City or the Executive Director of LORA, as applicable, and such additional persons who have been delegated contracting authority by the City Manager or Executive Director, respectively, in regards to the proposed or awarded Contract (LO) Public Contracting Officer s Policies and Guidelines [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] (1) Unless specifically exempted, no purchases and contracts for goods and services, public improvements, or public works shall be authorized unless conducted pursuant to the formal competitive bidding requirements. (2) All notifications required under these procedures shall be made to publicize anticipated purchases or Contracts to potential bidders. (3) No purchase shall be contracted for or made unless sufficient funds have been budgeted in the year and for which funds have been appropriated. (4) When it is advantageous to the City, annual contracts for personal property and services regularly purchased should be initiated. (5) All purchases and contracts must be approved by the PCO. (6). No payment or partial payment for goods and services, public improvements, public works shall be made without approval of the operating department and the PCO. (7). All contracts for personal property, public improvements, services, or personal services shall be approved as to form by the Attorney for the Contracting Agency. (8). The City may jointly bid with other governmental agencies, provided procedures used substantially comply with the purpose of these regulations and the intent of the Oregon public contracting laws. The PCO shall determine compliance with these laws and regulations. (9) It shall be the responsibility of the PCO to: Page 4 - Division 46

20 (a). Ensure that all purchases and contracts for service comply with these regulations; (b). Review and approve all purchases; (c). Make recommendations to the Board concerning purchase regulations and amendments to rules set forth herein; (d). Maintain accurate and sufficient records concerning all purchases and contracts for services; (e). Provide the Board adequate staff assistance in the performance of its duties; and maintain a list of contractors for public improvements and personal services who have made themselves known to the Contracting Agency and are interested in responding to Solicitations. (10). Solicitation Methods. (a). Policy. It is the policy of the Contracting Agency to encourage open and impartial competition in public contracting. Competition exists not only in prices, but in a Contractor s ability to perform, technical competence, ability to provide timely deliveries, and quality and performance of products and services. While an Invitation to Bid pursuant to Competitive Bidding is a common method of procurement, it is not always the most advantageous or practical solicitation method. However pursuant to policy, the PCO must make every effort to construct public improvements at the least cost. (b) Types of Solicitation Methods. (i). The PCO may encourage meaningful competition through a variety of solicitation methods. The PCO shall choose the solicitation method that is most likely to encourage bids representing optimal value. (ii). The PCO may use an Invitation to Bid if the PCO believes optimal value will be received by selecting the lowest priced offer that meets the technical requirements of the Specifications. (iii). The PCO may use a Request for Proposal if the PCO believes optimal value will be received: 1. By selecting a Proposal using both price and non-price related factors; or 2. By selecting a Proposal using both price and non-price related factors and permitting negotiations. (iv). The PCO may permit negotiations under a Request for Proposal when: 1. The PCO is willing to consider alternative terms and conditions to reduce PCO cost or enhance the value of the product or service requested; or 2. The PCO finds negotiation is required to effect a successful procurement (e.g. the specifications are complex and the PCO expects numerous queries as to the proper interpretation of the specification; the work requires a high level of technical or managerial competence that cannot be defined adequately in the specifications; or the PCO believes Page 5 - Division 46

21 (c). (d). discussions are necessary to gauge the Proposer s understanding of complex specifications). If using an Invitation to Bid for Competitive Bidding, the PCO shall set forth objective evaluation criteria in the Invitation to Bid. Examples of such criteria include, but are not limited to, conversion costs, transportation cost, volume weighing, trade-in allowances, cash discounts, depreciation allowances, cartage penalties, ownership or life-cycle cost formulas, performance history on other private and public contracts, experience of key personnel, adequacy of equipment and physical plant, financial wherewithal, sources of supply, references and warranty provisions. Evaluation criteria need not be precise predictors of actual future costs; but, to the extent possible, such evaluation factors shall be reasonable estimates based upon information the PCO has available concerning future use; If using a Request For Proposal, the PCO shall set forth selection criteria in the Request for Proposal. The criteria shall be as objective as possible. Evaluation factors need not be precise predictors of actual future costs and performance; but to the extent possible, such evaluation factors shall be reasonable estimates based on information available to the PCO. The Request for Proposal shall also describe the following: (i). If the PCO is willing to negotiate terms and conditions of the Contract, the PCO must identify the specific terms and conditions that are subject to negotiation and authorize Proposers to propose certain alternative terms and conditions in lieu of the terms and conditions the PCO has identified as authorized for negotiation; and (ii). Evaluation criteria and relative importance of the criteria. Examples of evaluation criteria include price or cost, quality of a product or service, past performance, management capability, personnel qualification, prior experience, compatibility, reliability, operating efficiency, expansion potential, experience of key personnel, adequacy of equipment and/or physical plant, financial wherewithal, sources of supply, references and warranty provisions (LO) Class Special Procurement Exemptions [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] The following classes of contracts, in addition to other classes of contract authorized in these rules, i.e., small procurement, intermediate procurement, emergency procurement, in OAR and , are exempt from the competitive bidding procurement requirements of these Rules to the extent provided: (1) GOODS AND SERVICES (a) Equipment Repair and Overhaul. A Contract may be awarded for equipment repair or overhaul if service and/or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing. The Page 6 - Division 46

22 selection of the Contractor shall be based upon the Contractor s knowledge and experience of working with the specific equipment, including type or brand, reliability, warranties, basic hourly rates for service, estimated parts cost (to the extent it is know what parts will need to be replaced), anticipated service time and availability, ability to provide replacement vehicle during service period, and such other factors as convenient to expedite the repair or overhaul. If the contract exceeds $75,000, the PCO shall document in the procurement file the reasons why competitive bids were deemed to be impractical. (Note: if service and/or parts required are for sophisticated equipment for which specially trained personnel are required and such personnel are available from only one source, see Section (Sole-Source Procurements)). (b) Cooperative Agreements. Cooperative Agreements entered into pursuant to ORS 279A.200 et seq. and OAR of this Rule. (c). Donated Goods and Services. A Contract may be awarded to a person to perform services, or provide goods, or a combination of good and services, regardless of dollar amount, if: (i) The person has agreed to donate all or a significant portion of the goods, or has agreed to donate all or a significant portion of the services; and (ii) The person enters into a Contract whereby the person agrees to comply with the public contract requirements applicable to the particular project and any requirements that the PCO deems necessary or beneficial to protect the Contracting Agency. (d). Concession and Franchise Contracts. A concession or franchise contract may be awarded without competitive procurement pursuant to these Rules regardless of dollar amount. For the purposes of this subsection a "concession contract" or "franchise" means that the Contracting Agency authorizes the use of its property or facilities for a private commercial purpose in return for a fee or a percentage of revenue from the operation. (e). Advertising. Contracts for the placing of notice or advertisements in any medium. (f). Animals. Contracts for the purchase of animals. (g). Copyrighted Materials; Library Materials. Contracts for the acquisition of materials entitled to copyright, including but not limited to works of art and design, literature and music, or materials even if not entitled to copyright, purchased for use as library lending materials. (h). Government Regulated Items / Utilities. Contracts for the purchase of items or utilities for which prices or selection of suppliers are regulated by governmental authority. (i). Insurance. Insurance and service contracts as provided in ORS , , , and Page 7 - Division 46

23 (j). Non-Owned Property. Contracts or arrangements for the sale or other disposal of abandoned property or other personal property not owned by the Contracting Agency. (k). Sponsorship Agreements. Sponsorship agreements, under which a gift or donation is received in exchange for recognition of the donor, which may also include additional benefits to the donor related to the event as a part of the sponsorship. (l). Temporary Use of Contracting Agency-Owned Property. The PCO may negotiate and enter into a license, permit or other contract for the temporary use of Contracting Agency-owned property without using a competitive selection process if: (i). The contract results from an unsolicited proposal based on the unique attributes of the property or the unique needs of the proposer; (ii). The proposed use of the property is consistent with the Contracting Agency s use of the property and the public interest; and (iii). The right is reserved to terminate the contract without penalty, in the event that the PCO determines that the contract is no longer consistent with the present or planned use of the property or the public interest. (m). Federal Purchasing Programs. (ORS 279A.180). Goods and services may be purchased without competitive bidding procedures under the local government purchasing program administered by the United States General Services Administration (GSA) as provided in this subsection: (i). The procurement must be made in accordance with procedures established by GSA for procurements by local governments, and under purchase orders or contracts submitted to and approved by the PCO. (ii). The price of goods or services must be established under price agreements between the federally approved vendor and GSA. (iii). The price of goods or services must be less than the price at which such goods or services are available under state or local cooperative purchasing programs that are available to the Contracting Agency. (iv). If a single purchase of goods or services exceeds $150,000, the PCO must obtain informal written quotes or proposals from at least two additional vendors (if reasonably available) and find, in writing, that the goods or services offered by GSA represent the best value. This subsection does not apply to the purchase of equipment manufactured or sold solely for military or law enforcement purposes. (n). Personal Use Items. An item (or indivisible set) of specialized and personal use, other than police officer s handguns, with current value of less than $100 may be sold to the employee or retired or terminated employee for whose use it was purchased. These items may be sold for fair market value without bid and by a process deemed most efficient by the PCO. (2) PUBLIC IMPROVEMENT Page 8 - Division 46

24 (a) Donated Public Improvement. The PCO may authorize a person to construct a public improvement without competitive bidding or other competitive process and regardless of dollar amount, if: (i) The person has agreed to donate all or a significant portion of the materials or services necessary to construct the public (ii) improvement or perform the service; and The person enters into a Contract whereby the person agrees to comply with the public contract requirements applicable to the particular project and any requirements that the PCO deems necessary or beneficial to protect the Contracting Agency. (b) Public Improvement Contract Concurrent with Privately-Funded Improvements to Public Right-of-Way or Public Utility. Public Improvement Contracts for a street, roadway, alley, other public right-of-way, or public utility, and related streetscape projects made with a Contractor that is simultaneously undertaking the construction, reconstruction, or substantial modification of the same public right-of-way or public utility for development or improvement of adjacent or nearby real property, or that is adjacent to and in the construction area of the street, roadway, alley, other public right-of-way, or public utility. (3) GOODS AND SERVICES and/or PUBLIC IMPROVEMENT (a). Additional Capacity or Shared Purchase Contracts. The Contracting Agency may contract with an Owner or Developer to construct or improve a public improvement or public work, or acquire and/or install goods without competitive bidding in the following circumstances: (i). An Owner or Developer: 1. Elects to construct or improve a public improvement or public work, or acquire and/or install goods to improve or enhance private property, 2. Has been required to construct or improve a public improvement, or public work, or acquire and/or install goods as a condition of development, or 3. Is otherwise modifying or effecting a public improvement, public work, or goods as a result of development; and (ii). The PCO makes written findings that it would be likely to result in a cost savings and is in the best interests of the Contracting Agency to enter into an agreement with the Owner or Developer to add to, extend, expand or increase the capacity of the improvement beyond what is otherwise required to serve the purposes of the Owner or Developer, or to contribute a portion of the cost of construction, improvement, or acquisition and/or installation, and the findings are retained in the PCO s project file; and Page 9 - Division 46

25 (iii). The contract shall require the Owner s or Developer s contract with the contractor or vendor for the construction, improvement, or acquisition and/or installation comply with any applicable mandatory public contract provisions, including payment of prevailing wage (LO) Awarding Authority for Contracts, Amendments and Intergovernmental Agreements [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] (1). When a rule states that the Contracting Agency is authorized to award a contract, the council, board, or person authorized to award the Contract on behalf of the Contracting Agency shall be as provided in this section. (2). The Lake Oswego City Council shall award all public contracts for the City of Lake Oswego unless otherwise provided by this section, or by resolution of the Council. (3). The Board of the Lake Oswego Redevelopment Agency shall award all public contracts for the Lake Oswego Redevelopment Agency unless otherwise provided by this section, or by resolution of the Board. (4). The Lake Oswego City Council, as the governing body of the City and LORA, hereby delegates authority to the PCO to Award Contracts and Amendments to Contracts, and to enter into Intergovernmental Agreements and Amendments to Intergovernmental Agreement as follows, and the PCO is hereby designated as the Awarding Authority and Change Order Authority, for the following classes of Contracts: Contract Awardable By PCO Special Limitations Maximum Amount / Scope Goods or services (excepting Generally $100,000 personal service contracts), Public Improvements, and Public Works Donated Public Improvement None Architect, Engineer, Land Surveyor, or Provider of Related Services Architect, Engineer, Land Surveyor, or Provider of Related Services Contract expense fully offset by fees, charges, donations, or funds raised for services or programs offered through City Concession and Franchise Donated Goods and Services Architect, Engineer, Land Surveyor, or Provider of Related Services $100,000 Annual Gross Sales expected to exceed $ 100,000. None Formatted: No underline Formatted: No underline Page 10 - Division 46

26 Contract Awardable By PCO Special Limitations Maximum Amount / Scope Contracts for goods or services Amendment of Contract Amount $100,000 (excepting personal service Amendment to alter scope of work or time for None contracts), Public Improvements, performance and Public Works: Personal Service Amendment of Contract Amount $100,000 Intergovernmental Agreements Authorized to be Executed by PCO Purchase of Goods and Services (materials, supplies, equipment, vehicles, services), Public Improvements, and Public Works Generally $100,000 Donated Public Improvement None Personal services - Generally $100,000 Contract expense fully offset by fees, $100,000 charges, donations, or funds raised for services or programs offered through City Donated Goods and Services None Allocation of existing equipment and personnel, such as mutual aid agreements or involvement in dedicated task forces. Agreement does not significantly affect the City s ability to provide services within its own boundaries. None (3) Contracts, Amendments to Contracts, and Intergovernmental Agreements exceeding the above amounts shall be awarded or rejected by the City Council, following an evaluation and recommendation by the PCO, and the City Council is hereby designated as the Awarding Authority and Change Order Authority for such classes of contracts. Page 11 - Division 46

27 EXHIBIT B-2 TO RESOLUTION LAKE OSWEGO PUBLIC CONTRACT RULES 2016 Division 47 (LO) PUBLIC PROCUREMENTS FOR GOODS OR SERVICES GENERAL PROVISIONS Intermediate Procurements (LO) Personal Services Procurements Availability of Award Decisions... 3 Page 1 - Division 47

28 Intermediate Procurements [Amendment or supplement of Model Rule is shown by redline revisions to the text of the rule; new text is shown by double underline, and deleted text is shown by strikethrough.] (1) Generally. For Procurements of Goods or Services greater the dollar amount stated in ORS 279B.065 and less than or equal to the higher dollar amount stated in ORS 279B.070, the Contracting Authority may Award a Contract as an intermediate Procurement pursuant to ORS 279B.070. Written Solicitations. For Intermediate Procurements equal to or exceeding $75,000, a PCO shall use a Written solicitation to obtain quotes, Bids or Proposals. (2) Negotiations. The PCO may negotiate with a prospective Contractor who offers to provide Goods or Services in response to an intermediate Procurement to clarify its quote or Offer or to effect modifications that will make the quote or Offer more Advantageous to the Contracting Agency. (3) Amendments. The Contract Agency may amend a Contract Awarded as an intermediate Procurement in accordance with OAR , but the cumulative amendments shall not increase the total Contract Price to a sum that exceeds the higher dollar amount stated in ORS 279B.100 or one hundred twenty-five percent (125%) of the original Contract price, whichever is greater. (4) Written Solicitations. For Intermediate Procurements equal to or exceeding $75,000, a PCO shall use a Written solicitation to obtain quotes, Bids or Proposals (LO) Personal Services Procurements [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] (1) Generally. A Contract for Personal Services may be awarded without competitive bidding or solicitation of quotations, except as hereafter provided in subsection (4) below. The PCO shall take into account the Selection Factors in subsection 3 below in selecting the Contractor. (2) Exceptions. (a) Architectural, engineering, land surveying, transportation planning and photogrammetric mapping and related services - See Division 48.. (b) If the Contract Price of the Contract for Personal Services is greater than $100,000, the PCO shall comply with the requirements of subsection (4) below. (3) Selection Factors. The Contractor shall be selected based on an evaluation of the services needed, the abilities of the contractors, the uniqueness of the service, the general performance of the contractor, cost, residency (see OAR ), and other factors set forth by the PCO. The Contract need not be awarded to the Contractor submitting the least costly proposal. However, if a contract is not awarded to the lowest contractor, the PCO shall prepare and place in the project file a written statement of the reasons for the award. (4) When the Contract Price of the Contract for Personal Services is in excess of $100,000 (including any non-discretionary renewal by the City), the PCO shall prepare a Request for Page 2 - Division 47

29 Proposal ( RFP ), specifying the nature of the service needed, a detailed description of the work to be performed, the minimum qualifications of contractors and any other relevant information on which a selection can be made. The PCO shall solicit and shall obtain at least three competitive proposals based on the RFP, unless three proposals are not available. The PCO may place appropriate notices and advertisements in at least one trade magazine and/or newspaper of general circulation Availability of Award Decisions [Amendment or supplement of Model Rule is shown by redline revisions to the text of the rule; new text is shown by double underline, and deleted text is shown by strikethrough.] (1) Contract Documents. To the extent required by the Solicitation Document, the Contracting Agency shall deliver to the successful Offeror a Contract, Signed purchase order, Price Agreement, or other Contract documents as applicable. (2) Availability of Award Decisions. A Person may obtain tabulations of Awarded Bids or evaluation summaries of Proposals for a minimal charge upon payment of the amount charged for production of public records by the Contracting Agency, as specified by resolution in its Master Fee Schedule or other resolution, or by ordinance, in person or by submitting to the Contracting Agency a Written request accompanied by payment. The requesting Person shall provide the Solicitation Document number and enclose a self-addressed, stamped envelope. In addition, the Contracting Agency may make available tabulations of Bids and Proposals through the Electronic Procurement System of the Contracting Agency or the Contracting Agency's website. (3) Availability of Procurement Files. After notice of intent to Award, the Contracting Agency shall make Procurement files available in accordance with applicable law. Page 3 - Division 47

30 EXHIBIT B-3 TO RESOLUTION LAKE OSWEGO PUBLIC CONTRACT RULES 2016 Division 48 (LO) CONSULTANT SELECTION: ARCHITECTURAL, ENGINEERING, LAND SURVEYING, PHOTOGRAMMETRIC, AND TRANSPORTATION PLANNING SERVICES AND RELATED SERVICES CONTRACTS Table of Contents List of Interested Consultants; Performance Record (LO) Establishing Reasonable Time in Informal Selection Procedure (OAR ) and Formal Selection Procedure (OAR ) List of Interested Consultants; Performance Record [Amendment or supplement of Model Rule is shown by redline revisions to the text of the rule; new text is shown by double underline, and deleted text is shown by strikethrough.] (1) (a) Public Notice to Create List of Interested Consultants. Contracting Agency shall give public notice that there is an opportunity for consultants engaged in the lawful practice of their profession and who are interested in providing Architectural, Engineering, Photogrammetric Mapping, Transportation Planning or Land Surveying Services or Related Services to place their names on a list maintained by the Contracting Agency for the purpose of selecting consultants through the Direct Appointment Procedure (OAR ) or Informal Selection Process (OAR ). (b). The Notice shall state (i) the information to be submitted, which shall include the information in subsection (2) below, (ii) the categories or specialties of types of lists of consultants to be compiled,(iii) the duration of the list (up to two years), and (iv) the manner and deadline for submission of the information. The deadline shall be not less than 30 days after the date of first publication of the Notice. (c). The Notice shall be published at least once in a newspaper of general circulation in the Portland metropolitan area, i.e., Oregonian or Daily Journal of Commerce, and in a newspaper of general circulation in the Lake Oswego area, i.e., Lake Oswego Review. (d). After the deadline for the submission of the statements, the Contracting Agency s Engineering Dept. shall list the names and contact information of the interested consultants, and the list shall be publicly available upon request. (2) Consultants who are engaged in the lawful practice of their profession and who are interested in providing Architectural, Engineering, Photogrammetric Mapping, Transportation Planning or Land Surveying Services or Related Services, may annually submit a statement Page 1 Division 48 (LO)

31 describing their qualifications and related performance information to Contracting Agencies' Engineering Department s office addresses. Contracting Agencies shall use this information to create a list of prospective Consultants for the purpose of selecting consultants through the Direct Appointment Procedure (OAR ) or Informal Selection Process (OAR ) until the next notice and compilation of a list of interested consultants. The Contracting Agency and shall update this list at least once every two years. (23) Contracting Agencies may compile and maintain a record of each Consultant's performance under Contracts with the particular Contracting Agency, including information obtained from Consultants during an exit interview. Upon request and in accordance with the Oregon Public Records Law (ORS through ), Contracting Agencies may make available copies of the records. (34) State Contracting Agencies shall keep a record of all Contracts with Consultants and shall make these records available to the public, consistent with the requirements of the Oregon Public Records Law (ORS through ). State Contracting Agencies shall include the following information in the record: (a) Locations throughout the state where the Contracts are performed; (b) Consultants' principal office address and all office addresses in the State of Oregon; (c) Consultants' direct expenses on each Contract, whether or not those direct expenses are reimbursed. "Direct expenses" include all amounts that are directly attributable to Consultants' services performed under each Contract, including personnel travel expenses, and that would not have been incurred but for the services being performed. The record must include all personnel travel expenses as a separate and identifiable expense on the Contract; and (d) The total number of Contracts awarded to each Consultant over the immediately preceding 10-year period from the date of the record (LO) Establishing Reasonable Time in Informal Selection Procedure (OAR ) and Formal Selection Procedure (OAR ). [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] (1). In the Informal Selection Procedure (OAR ) and Formal Selection Procedure (OAR ) rules, when the rule states that a reasonable time shall be provided for negotiation or selection of a consultant, reasonable time shall be the time period established by the Contracting Agency in its sole discretion, through its selection or evaluation person or panel. The selection or evaluation person or panel shall consider the time available for negotiation with each perspective Consultant and the time available for the entire Consultant selection phase of the Project. The time period established shall be communicated to each affected prospective Consultant not less than 2 business days prior to the expiration of the deadline. (2). The time period may be extended by the selection or evaluation person or panel when it determines it is in the best interest of the Contracting Agency to do so. Page 2 Division 48 (LO)

32 EXHIBIT B-4 TO RESOLUTION LAKE OSWEGO PUBLIC CONTRACT RULES 2016 Division 49 (LO) GENERAL PROVISIONS RELATED TO PUBLIC CONTRACTS FOR CONSTRUCTION SERVICES Pre-Offer Conferences (LO) Waiver of Requirement for Bid Security, Performance and Payment Bonds Pre-Offer Conferences [Amendment or supplement of Model Rule is shown by redline revisions to the text of the rule; new text is shown by double underline, and deleted text is shown by strikethrough.] (1) Purpose. A Contracting Agency may hold pre-offer conferences with prospective Offerors prior to Closing, to explain the Procurement requirements, obtain information or to conduct site inspections. (2) Required attendance. The Contracting Agency may require attendance at the pre- Offer conference as a condition for making an Offer. Unless otherwise specified in the Solicitation Document, a mandatory attendance requirement is considered to have been met if, at any time during the mandatory meeting, a representative of an offering firm is present. (3) Scheduled time. If a Contracting Agency holds a pre-offer conference, it shall be held within a reasonable time after the Solicitation Document has been issued, but sufficiently before the Closing to allow Offerors to consider information provided at that conference in no event less than 7 days prior to the Closing Date.. (4) Statements Not Binding. Statements made by a Contracting Agency's representative at the pre-offer conference do not change the Solicitation Document unless the Contracting Agency confirms such statements with a Written Addendum to the Solicitation Document. (5) Contracting Agency Announcement. The Contracting Agency must set forth notice of any pre-offer conference in the Solicitation Document in accordance with OAR (1)(a)(B) (LO) Waiver of Requirement for Bid Security, Performance and Payment Bonds [This LOPCR is in addition to the Model Rules; it does not revise a Model Rule.] Pursuant to ORS 279C.390 and OAR (1), the requirements for bid security, performance and payment bonds for following classes of Public Improvement Contracts are waived, unless the PCO elects to require such bonds, but in such event the PCO shall not exercise such discretion to discourage competition: Page 1 - Division 49 (LO)

33 (1). Public Improvement Contracts with a Contract Price equal to or less than $100,000 or, in the case of Contracts for highways, bridges and other transportation projects, more than $50,000, except as may be otherwise required by these rules. Page 2 - Division 49 (LO)

34 EXHIBIT B-5 TO RESOLUTION LAKE OSEWGO PUBLIC CONTRACT RULES 2016 DIVISION 50 (LO) PROPERTY DISPOSITION (LO) Applicability (LO) Definitions (LO) Auction Sales of Personal Property (LO) Sales of Personal Property (LO) Liquidation Sales of Personal Property (LO) Donations of Personal Property (LO) Applicability [The Model Rules do not address disposition of personal property; this LOPCR does not revise a Model Rule.] (1) These Division 50 rules implement ORS Chapter 279B, Public Procurements and apply to the Sale of Personal Property (LO) Definitions [The Model Rules do not address disposition of personal property; this LOPCR does not revise a Model Rule.] (1) Personal Property means tangible personal property as defined in ORS (LO) Auction Sales of Personal Property. [The Model Rules do not address disposition of personal property; this LOPCR does not revise a Model Rule.] Personal property may be sold at auction if the PCO determines that the auction contemplated will probably result in a higher net return than if the property were sold by competitive written bid (LO) Sales of Personal Property. [The Model Rules do not address disposition of personal property; this LOPCR does not revise a Model Rule.] (1) The PCO may sell personal property, including recyclable or reclaimed materials and forfeited property, without formal competitive bidding if the PCO has determined that a negotiated sale will result in increased net revenue and the following are met. (2) When the current market value per item is deemed to be less than $1,000, the PCO may establish a selling price, schedule and advertise a sale date, and sell to the first qualified buyer meeting the sale terms. (3) When the current value per item is deemed to exceed $1,000: (a) The personal property must be offered for sale by one of the following methods: Page 1 - Division 50 (LO)