LCRB Resolution No. 20-01 CITY OF TIGARD, OREGON
TIGARD LOCAL CONTRACT REVIEW BOARD
RESOLUTION NO. 20-01
A RESOLUTION AMENDING THE CITY OF TIGARD PUBLIC CONTRACTING RULES
WHEREAS,the City of Tigard's Public Contracting Rules (PCRs),adopted pursuant to Tigard Municipal Code
(TMC) 2.46,provide for the processes and procedures of public contracting in the City;and
WHEREAS, the City Council amended TMC 2.46 to move some provisions out of code and into the PCRs;
and
WHEREAS,the city manager's signature authority of$100,000 is less than many surrounding jurisdictions and
the efficiency of contracting at the City could be increased by raising that signature authority;and
WHEREAS, the City wishes to clarify the process and findings required for an alternative contracting method,
such as construction manager/general contractor to comply with state law;and
WHEREAS,the City Council determines that the PCRs,as revised,better suit the needs of the City that the
Attorney General Model Rules (Model Rules).
NOW,THEREFORE,BE IT RESOLVED by the Tigard Local Contract Review Board that:
SECTION 1: The City's Public Contracting Rules are amended as shown in the attached Exhibit A
(additional language is underlined and deleted text is shown in st4et#re ).
SECTION 2: This resolution is effective immediately upon passage.
PASSED: This_131d day of 2020.
Mayor-City of Tigard
ATTEST:
City Recorder-City of Tigard
RESOLUTION NO.20-0 1
Page 1
EXHIBIT A
CITY OF TIGARD —
LOCAL CONTRACT REVIEW BOARD PUBLIC CONTRACTING RULES
June 2020
PCR 5.000—MISCELLANEOUS
5.010 DELEGATION OF AUTHORITY TO OBLIGATE THE CITY
A. The Local Contract Review Board (I.CRB) delegates authorite to the City Manager to:
1. Award and execute contracts without specific LCRB approval whenever the contract
amount is$250.000 or less.
2. Award and execute price ag eements without specific LCRB al i2roval if the Vearly
estimated cost to the Cite is 5100.000 or less.
3. Authorize and execute amendments for contracts and price agreements under PCR
10.075 B. or as specifically authorized by the LCRB.
5.015 AUTHORIZATION TO ADVERTISE
The Cite Manager is authorized to approve advertising for all bids or Proposals.
5.020 DUTIES OF CONTRACTS AND PURCHASING
A. For contracts covered by the PCRs.Contracts and Purchasing;will:
_1. Establish and maintain a centralized system for the purchase, contract, and sale of
propert}• and services.
_2. Adol)t forms, procedures, and administrative rules for all City purchases of goods
and services regardless of the amount.
5.025 PURCHASING FROM CITY EMPLOYEES
A. The purchase of ant supplies, materials. equipment. labor, or services—including personal and
professional services—from any Cit1 emplo}ee, or business with which a Cite emplo)-ee is
associated is subiect to prior written approval b�: the Cit�rManager. Such approval will be based
ul2on findings that:
1. The purchase will be the least cost to the Citi:
2. The purchase will result in the most efficient method to accomplish the Cijy's
ose•
3. The purchase is unlikely to lead to any alleged violations of thepersonnel rules:
4. The approval of the purchase is unlikeli to lead to an adverse employer-eml_plo`�ee
relationship should the contract be unsatisfactorilyperformed;and
5. All rules adopted by the LCRB have been satisfied.
B. For purposes of this section "ani business with which a Cit' employees is associated" means
ani business for which the emploNee is a director, officer, owner or employee, or any corporation
in which the Cin- eml-)lo;ee owns or has owned ten percent or more of ani- class of stock at an)7
time in the l)receding calendar}'ear.
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PCR 10.000—COMPETITIVE PROCESS REQUIRED,EXEMPTIONS
10.010 COMPETITIVE PROCESS, EXEMPTIONS AND DEFINITIONS
B. 5. "bat's"means calendar days,including weekday:s,weekends and holidat s.
10.105 USE OF ALTERNATIVE CONTRACTING METHODS FOR PUBLIC
IMPROVEMENT CONTRACTS INP 0ANG SIGN-OR
GONST TION-NLAN+k EM4ENT
ORS 279C requires a competitive bidding process for Public Improvement Contracts unless a
statutory exception applies, a class of Contracts has been exempted from Competitive Bidding,or
an individual Contract has been exempted from Competitive Bidding. in accordance with ORS
279C.335. The City may enter into public improvement contracts without competitive bidding by
use of an alternative contracting method if processes as described in PCR 10.108 are followed.
Alternative contracting methods for public improvement are as follows: if-the-eern"aets-iftyelve
design-e e6ffi tier-management -Peq e-;E-pertise-beysftdftsteaetiefter }ess
emetnp+-ender"seffie ethef-eget $reeess-Abe-esed:--9rle-e€+he
€elle,*itcgspeei€te-preeesses aewed
A. Construction Manager/General Contractor
The City may select a person or firm to act as a Construction Manager/General Contractor
(CM/GC) to construct public improvements by means of a competitive proposal process.
1. A CM/GC performs specified Construction Manager services in addition to traditional
General Contractor services. A CM/GC contract shall require full performance within a
negotiated Guaranteed Maximum Price (GMP). The basis for payment shall be reimbursable
direct costs plus a fee constituting full payment for work and services rendered, which
together shall not exceed the GMP.
2. The solicitation documents shall include:
a. A description of the evaluation process and criteria and weighting. The criteria may
include cost, quality, experience, availability, commitment to timely completion, and
other factors.
b. As part of the selection process, if the City chooses to hold interviews the scoring from
the interviews will be combined to the other evaluation criteria to arrive at a proposer's
final score and ranking.
c. State that any savings the construction manager/general contractor realizes in
performing the contract will accrue to the City, unless the contract provides otherwise.
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d. Specify terms and conditions that govern how the fixed price, guaranteed maximum
price or other maximum price set forth in the contract will be determined and whether
the price includes or is based on unit pricing or allows for work that is constructed in
phases.
e. State that the City will not pay any amount that exceeds a fixed price, guaranteed
maximum price or other maximum price specified in the contract unless the amount
results from material changes to the scope of work set forth in the contract and the
parties to the public improvement contract agree in writing to the material changes.
f. Specify deadlines and time periods for the procurement that allow prospective
contractors a reasonable opportunity to submit proposals,including but not limited to:
1) The date and time by which the City must receive proposals;
2) The dates on which or the time periods during which the City will conduct
interviews,if the City chooses to hold interviews;and
3) The time period which the City will meet with those proposers not selected, if a
proposer requests a meeting to discuss the procurement.
g. A description of the circumstances under which any of the following activities may be
authorized and undertaken for compensation prior to establishing the GMP, but only
after unit prices are established:
1) Early procurement of materials and supplies;
2) Early release of bid packages for such things as site development;and
3) Other advance work related to critical components of the project.
3. The contract documents shall include:
a. A description of the method by which the CM/GC shall competitively select contractors
and subcontractors or the portions of subcontract work that may waive the qualification
and selection process.
b. Either the maximum guaranteed price or a process for establishing a guaranteed
maximum price.
c. A description of the situations in which the CM/GC may perform the work of the
improvement without subcontracting, including any requirement that the CM/GC
compete with others to do the work and the work that the CM/GC may perform
directly without a competitive process.
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d. The standards or factors under which changes or additional work that warrants an
increase in the GMP, as well as criteria for decreasing the GMP. The GMP shall not be
increased without a concomitant increase to the scope of the GMP.
e. The disposition of any cost savings resulting from completion of the work below the
GMP, including the CM/GC share, if any, in those cost savings. Normally, the cost
savings should accrue to the City. For purposes of this Section "savings" means a
positive difference between a fixed price, guaranteed maximum price or other maximum
prices set forth in the contract and the actual cost of the work,including costs for which
the City reimburses the CM/GC and fees or profits the CM/GC earns.
f. The items or categories of items are eligible for cost reimbursement within the GMP.
g. A provision for a final audit adjustment and process.
h. A fee that is inclusive of profit, overhead and all other indirect or non-reimbursable
costs. Costs determined to be included within the fee should be expressly defined
wherever possible. The fee, first expressed as a proposed percentage of all reimbursable
costs, shall be identified during and become an element of the selection process. It shall
subsequently be expressed as a fined amount when the GMP is established.
i. Any economic incentives, the specific criteria that apply and their relationship to other
financial elements of the Contract(including the GMP).
B. Desiai-Build Contracts
1. A design-build contract is one in which a single entity designs and constructs a public
improvement. Design-build contracts shall only be used if City staff has the expertise and
experience to administer a design-build contract.The design-build process may be used to:
a. Obtain through a Design-Build team, engineering design, plan preparation, value
engineering, construction engineering, construction, quality control and required
documentation as a fully integrated function with a single point of responsibility;
b. Integrate value engineering suggestions into the design phase, as the construction
contractor joins the project team early with design responsibilities under a team
approach,with the potential of reducing contract changes;
c. Reduce the risk of design flaws,misunderstandings and conflicts inherent in construction
contractors building from designs in which they have had no opportunity for input,with
the potential of reducing contract claims;
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d Shorten project time as construction activity (early submittals, mobilization,
subcontracting and advance work) commences prior to completions of a "biddable"
design, or where a design solution is still required (as in complex or phased projects); or
e. Obtain innovative design solutions through the collaboration of the contractor and
design team, which would not otherwise be possible if the contractor had not yet been
selected.
2. A design-build contractor must have an Oregon licensed design professional(s) on staff that
will be assigned to the City's project. The design-build contractor must disclose in its
proposal the name of the Oregon licensed design professional(s) and verify that the
professional(s)will be the one(s) providing primary design services to the City.
3. A design-build contractor awarded a contract shall provide additional security as required by
ORS 279C.380(1)(a). The obligation is not intended to be a substitute for professional
liability insurance and does not include errors and omissions or latent defects coverage.
4. The level or type of design services required must be clearly defined within the solicitation
documents and contract, along with a description of the level or type of any design services
previously performed for the project. The services to be performed shall be clearly
delineated as either design specifications or performance standards.
5. The contract will clearly identify the liability of design professionals, shall include
requirements for professional liability insurance,and shall clearly identify the extent of any
indemnity or warranty.
C. Contracts for EneW, Savings Performance Projects
The Ci - ma• enter into energy savings performance contracts without following the
Comlpetitive Bidding requirements of ORS 279C. "Ener• Savings Performance Contract"
means a public contract between a contracting agency and a iqualified energy service company
for the identification evaluation. recommendation. desi_qi and construction of energy
conservation measures including a desi ii-build contract that guarantee energy savings or
i>erformance.
!n ffiftfty, sivafttiafts,ifte�ddiiag these prejeets that r-equire ft higher thftft nafemftl level of e
.
eenstit-attees-at least 7�52A-ef he-tataley:al ifttia rseare. itt searing- the east c ete the _.a_�- -
--r—r
5
the laweRt eost. For &Eftffiple' if the seare faf the east &efaf is 80, the lowest east
the seare tedtteed by-19 pereent(8 paitifs),fa 72.
10.108 Findings. Notice and Hearin.
A. The LCRB may exempt a Contract from the requirements of Competitive Bidding for Public
Improvement Contracts if it makes the following findings:
1. It is unlikely, that the exemption will encourage favoritism or substantially diminish
competition in awarding; the public improvement contract.
2. The exemption will likely result in substantial cost savin rs and other substantial benefits to
the City in accordance with ORS 279C.335 f 2)(b'}.
3. As an alternative to the findings re€yarding substantial cost savings, the City mU make a
finding that identifies the �ro'ect as a -ilot _,ro'ect for which the Circ,- intends to determine
whether the use of the Alternative Contracting Method actually!_results in substantial cost
savings to the City.
B. The LCRB ma° consider the i e cost and amount of the Contract the number of persons
available to bid and other such factors as mai be deemed appropriate in declaring: the
exemption.
C. The LCRB shall require and approve additional finding>s in the follomd" areas in order to
declare the exeml)tion:
1. How mam-persons are available to bid:
2. The construction budget and the projected operating costs for the completed public
imnrovrment;
3. Public benefits that ma-y result from granting the exemption,
4. Whether value eW*neering techniques ma• decrease the cost of the public
improvement;
5. The cost and availabiliuv of specialized expertise that is necessary for the public
improvement,
6. Am-likely increases in_public safety
7. Whether granting the exemption mar reduce risks to the CiLy or the public that are
related to the public improvement:
8. Whether canting the exemption will affect the sources of funding for the public
improvement;
9. Whether Franting; the exemption will better enable the Citi to control the impact that
market conditions ma- have on the cost of and time necessa-tv to complete the public
imlrovement;
10. Whether granting the exemption will better enable the Circ• to address the size and
technical complexity, of the public improvement;
11. Whether the -,ublic improvement involves new construction or renovates or remodels
an existing structure;
12. Whether the public im rovement will be occupied or unoccupied during construction
13. Whether the public improvement will re wire a single phase of construction work or
multiple phases of construction work to address specific project conditions,• and
14. Whether the Cit • has or has retained under contract and will use Citpersonnel,
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consultants and legal counsel that have necessan- expertise and substantial experience
in alternative contracting; methods to assist in developinf the alternative contractin};
methods that the Cin- will use to award the 12ublic improvement contract and to heli
negotiate, administer and enforce the terms of the 12ublic improvement contract.
D. If a particular factor set forth in this section doesn't apply to the pardctilar public improvement
for which an exemption is sought. the LCRB does not need to consider that factor,and the ity
is not required to address the factor, other than to state why the factor has no apl}lication to the
the
articular public im)rovement.
E. The Cit,- shall hold a public hearing before final adoption of the findings and a declaration of
the exemption. Notification of the public hearing shall be published in at least one trade
newspaper of general statewide circulation a minimum of 14 Days before the heari .
F. The notice must state that the public hearing is for the purpose of taking comments on the
draft findings for an exemption from Coml)etidve Bid",. At the time of the notice, copies of
the draft findings must be made available to the public.
G. At the public hearing, the Cir.' shall offer an olportunit;- for any interested laersons to Q near
and1)resent comment.
H. Notice of the hearing maybe published simultaneously with the City's solicitation when the
Ciiv is required to act prompd� due to circumstances beyond the Ciry's control that do not
constitute and emergency as long as responses to the solicitation are due at least five 5 Days
after the meeting and a 3.roval of the findings
PCR 15.000 - PRICE AGREEMENTS
*****NO CHANGE*****
PCR 20.000 -BRAND NAMES OR MARKS
*****NO CHANGE*****
PCR 25.000—MINORITY OWNED,WOMAN OWNED. EMERGING SMALL
BUSINESSES AND SERVICE-DISABLED VETERAN OWNED BUSINESSES
*****NO CHANGE*****
PCR 30.000 -FORMAL COMPETITIVE PROCESSES
*****NO CHANGE*****
PCR 40.035 - CONTRACT CANCELLATION PROCEDURES
40.040 B. 2 De;�osit in Interest-Bearing Accounts
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Upon written request of the contractor, or an cirize the contract price exceeds $500,000. the
City shall deposit any amounts withheld as retainage in an interest-bearing account in a bank,
savings bank, trust company, or savings association for the benefit of the City. Interest
earned on such account shall accrue to the contractor. If `` ftet price eReeed:;
$590,000 and the eafitfaeter eleets to the Gity depagit ea .!a an hnteres
the contractor deposits bonds, securities, or other instruments in lieu of
cash retainage, the City shall accept the contractor's alternative retainage method in lieu of
depositing the retainage in an interest-bearing escrow account, subject to the limitations and
requirements of ORS 279C.560.
PCR 50.000—WAIVER OF SECURITY BID PERFORMANCE AND PAYMENT
BONDS
(Also see PCR 30.055)
*****NO CHANGE*****
PCR 60.000 - PROPERTY DISPOSITION
*****NO CHANGE*****
PCR 70.000- PERSONAL SERVICES CONTRACTS
70.016 B.2. B. 3) L p to The three (3) highest ranked prospective contractors from the RFP
process described above will be asked to provide price proposals to the City,in which not more than
fifteen (15) percent of the overall weight of the evaluation criteria can be assigned.
PCR 80.000 EMERGENCY CONTRACTS, SPECIFIC EXEMPTION
RE UIREMENTS• BOARD EXCEPTION- PROCEDURES•TEMPORARY
EXEMPTIONS
*****NO CHANGE*****
PCR 90.000—RECYCLABLE RECYCLED AND SUSTAINABLE PURCHASING
GUIDELINES
*****NO CHANGE*****
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