Resolution No. 77-05 CITY OF TIGARD, OREGON
RESOLUTION No. 77-_t
A RESOLUTION ADOPTING CITY OF TIGARD CONTRACT REVIEW BOARD RULES PURSUANT
TO CHAPTER 771 OREGON LAWS 1975.
WHEREAS, the City of Tigard has designated the City Council as a
Local Contract Review Board pursuant to Chapter 771, Oregon Laws 1975; and
WHEREAS, the City Council, acting as the Tigard Contract Review
Board has caused the creation of proposed Tigard Contract Review Board
Rules and after having published notice of intent to adopt said rules
and notice of a public hearing in a newspaper of local circulation on
December 29, 1976 and January 5, 1977; and
WHEREAS, at a public hearing held on January 10, 1977, the City Council
acting as the Tigard Contract Review Board did take testimony from any and
all who wished to appear on this matter; and
WHEREAS, the testimony offered was fully considered by the City Council
acting as the Tigard Contract Review Board; and
WHEREAS, based upon the material considered, the City Council acting
as the Tigard Contract Review Board finds that the attached Rules which
prescribe procedures, rules and certain exemptions relating to public
contracts are appropriate and that it is unlikely that the adoption of
the attached Rules will encourage favoritism in the awarding of public con-
tracts and that adoption of the attached Rules will Likely assure cost
savings to the City of Tigard.
NOW, THEREFORE,
BE IT RESOLVED by the City Council of Tigard acting as the Tigard
Contract Review Board
Section 1: The attached City of Tigard Contract Review Board Rules
are hereby adopted in their entirety.
Section 2: The adopted Rules shall become effective immediately upon
passage and approval of this resolution.
PASSED: This — day of ./n. k ce , 1977.
Mayor
ATTEST:
City Ref Y
-y w. RESOLUTION No 77-
CITY OF TIGARD
CONTRACT REVIEW BOARD RULES
Section 1. Purpose. These rules are promulgated by the Local
Contract Review Board, as designated by ordinance No. 76-3 pursuant
to the authority granted to that board by QRS Chapter 279, for
the purpose of establishing the rules and procedures for contracts
entered into the City of Tigard.
Section 2. Definitions. The following words and phrases mean:
Board. The City Contract Review Board as established by ordinance
No.
Competitive Bidding. The solicitation of competitive offers which
follow the ormal process for advertising, bid and bid opening
required by ORS Chapter 279 and applicable rules of the board.
Competitive Quotes. The solicitation of offers from competing
vendors. The solicitation may be by aavertisement or a request
to vendors to Leake an offer. The solicitation and the offer may be
in writing or oral.
Public Contract. Any purchase, lease or sale by the City of personal
property, pu c improvements or services other then agreements
which are exclusively for personal services.
Public Contracting Officer. The council or the person or persons
designated by the council to negotiate public contracts for the
city.
Section 3. Competitive Bids: Exemptions. All contracts shall be
basedupon competitive bids except:
(l Contracts with ublic a encies. Contracts made with,
or the cost of which is provided by, other public agencies or
the federal government.
(2) Personal service contracts. Contracts which are exclusively
for persona services. Such contracts may include incidental
materials such as written reports or opinions, architectural or
engineering renderings, and other supplemental materials required
for providing the services.
(3) Contracts under $2,500. Contracts for purchase or sale
wt-are the amount does not exceed $2,500.
(a) Where contracts are for more than $500 but less
than $2,500, competitive quotes may be obtained where
practicable.
(b) No contractor may be awarded, in the aggregate, within
the fiscal year, contracts in excess of $20,000 under this
subsection-without competitive bidding. In computing the
aggregate under this subsection, awards under $500 need not be
included.
(4) Contracts forcrice re lated items. Contracts for the
purchase of goods or serees where the rate or price for the goods
or services being purchased is established by federal, state or
local regulatory authority.
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(5) Allocated petroleum products. Contracts for the purchase
of petroleum products if such purchase is required to be made from
a particular supplier as a result of a federal allocation or if f
purchase from other than an established supplier could jeopardize
- an allocation or future supply of such petroleum products. 4
(6) Cc ri hted materials. Contracts for the purchase �
copyrighted ma eraa s where t ere is only one supplier available
for such goods.
(7) Advetisin contracts. Contracts for the purchase of adver-
tising, including That rr
eed for the purpose of giving public
notice. t
(a) Investment contracts. Contracts for the purpose of invest- !
ment of public funds or the borrowing of funds.
(9) Requirements contracts. Purchases of goods or services
from a supplier when the pr ce of the goods and services has been
established under a previously competitive bid requirements contract
whereby it is agreed to purchase requirements or an anticipated need
at a predetermined price.
(10) Sin le seller or rice of roduct re uired. Contracts
for purchase w ere re s on y one se er or price of a product of
the quality required available within a reasonable purchase area.
(11) Data processing contracts. Contracts for purchase or acquisit-
ion of data processing thardware or software) may be let without
competitive bid subject to the following conditions:
(a) Prior to selection of the contractor, reasonable
efforts have been made to solicit proposals from all known
vendors. If the amount of the contract exceeds $10,000,
written proposals shall be solicited from the appropriate
vendors appearing on the list composed by the Data Systems
Division of the Executive Branch of the State of Oregon
or by publication of an advertisement in a major trade
publication of general circulation.
(b) The contractor is selected on the basis of the most
competitive offer in both the cost and quality of the product .
to be purchased or acquired.
(a) Whenever a contract for data processing let pursuant
to this exemption exceeds $5,000, a written report shall be
submitted to the board. The report shall include: .
(i) The name of the company and, if applicable,
the name of the retail vendor;
(ii) The reasons why competitive bidding was
not appropriate; and
(iii) A description of the reasons why the contractor
was selected and other proposals rejected.
(12) Insurance contracts. Contracts for employee benefit in-
surance.
(13) Contract amendments. Any contract amendment, including
h` change orders, extra work, =eld orders, or other change in the original
specifications which changes the original contract price or alters
the work to be performed, may be made with the contractor subjsct to
the following conditions:
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(a) The original contract imposes a binding obligation 1
t on the parties covering the terms and conditions regarding
changes in the work:
(b) The amended contract does not substantial [
ly alter
the scope or nature of the project; or
(c) If the amendment has the effect of substantially
of the project, the amount of the
altering the scope or nature
aggregate cost change resulting from all amendments creating
such new obligations shall not exceed 10;b of the initial
contract.
(14) Equipment maintenance. Contracts for the purchase
repair
of services, equipment or supplies for the maintenance,,
or conversion of existing equipmentthe
are exempt if required for
efficient utilization of the equipment. Where practicable,
competitive quotes shall be obtained.
(15) As haltic concrete and rock. for the purchase
Contracts
of asphaltic concre a an roc where the material is to be used
for maintenance. Where practicable, competitive quotes shall be
obtained.
(16) Bids obtained by the State for same materials. Contracts
for the purchase of materials where competitive bids for the same
materials have been obtained by the State of Oregon, and the
aarded same or lower thanrty that tstathat
with,
is that
paid by the state.
(17) Sale of personal pro erty. Personal property may be
disposed of wit out competitive bidding under any of the following
conditions:
(a) There are specific statutory or ordinance procedures
for the sale of the type of property involved, and the
propert is disposed of according to those procedures;
(b� The property has a value of less than 9500 unless
otherwise provided by statute or ordinance; or
(c) The public contracting officer finds that competitive
bids would be inappropriate for the type of proTerty involved.
A report of all sales made under this subsection shall be
made to the board and shall include the reasons that competitive
bids were deemed inappropriate.
(18) Franchise a reements. Where practicable competitive
quotes sha 1 e o a ned.
Section 4. Exem tions for Additional Contracts. The board may,
by r—"esoltztion exemp o her con racts from competitive bidding if
it finds:
(1) The lack of bids will not result in favoritism or substant-
ially diminish competition in awarding the contract; and
(2) The exemption will result in substantial cost savings.
In making such findings, the board may consider the type, cost,
sucount of h othertfactorsrastthe board mayypersons
appropriate. bid, and
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Section 5. Emergency Contracts. A contract may also be exempted
r -competiTive icdding council, by majority vote of
ambers present, determines that emergency conditions require prompt
execution of the contract. A determination of such an emergency
shall be entered into the record of the meeting at which the deter- €.
a mination is made. t
Section 6. Brand Name Specification in Contracts. Specifications
for contracts shal not requ re any product y any brand name or
mark, nor the product of any patticular manufacturer or seller,
unless the product of any particular manufacturer or seller,
unless the product is exempt from this requirement under the
provisions of subsection (1) or (2). However, this section shall
not be construed to prevent reference in the specifications to
a particular product as a description of the type of item required.
(1) A contract shall be exempt from the requirement of this
section under any of the following conditions:
(a) The specification is for a specific copyrighted .
product. This exemption does not include patented or
trade mark goods.
(b) If there is only one manufacturer or seller of a
product of the quality required, or if the efficient utilization g
of the existing equipment or supplies requires a compatible x
product of a particular manufacturer of seller, a contract may
specify such particular product subject to the following
condJdons: F
(i.) The rroduct is selected on the basis of k
-s' the most competitive offer considering quality and cost.
The term "cost" includes not only the product price but
also other items of expense such as costs related to
quality or conversion;
Y` (ii) Prior to awarding the contract, reasonable
efforts have been made to notify all known vendors of
k' competing or comparable products of the intended
specifications; and such vendors have been invited to
submit competing proposals. If the amount of the purchase
{ does not exceed $5,000, such notice and invitation may be
informal. If the amount of the purchase exceeds #5,000,
such notice shall include advertisement in at least one
i; newspaper of general circulation in the area where the con-
:< tract is to be performed and shall be timed to allow $;
competing vendors a reasonable opportunity to make proposals;
a and
(iii) If the amount of the purchase exceeds $2,500
and the contract is not also pursuant to the data processing ¢
exemption in Section 3 (9), the public contracting officer r
shall notify the board of the specification. The notice
shall be written and include a brief description of the
proposed contract, a detailed description of the reasons
why the product and/or seller was selected and any
competing products and/or sellers that were rejected.
The description shall also include the efforts made to
notify and invite proposals from competing vendors.
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(c) When it is impractical to create specific design
or performance specif'cations for a type of product to be
purchased, a li. t of approved products by reference to particular
manufacturers or sellers may be specified in accordance with the
following product prequalification procedure:
(i) Reasonable efforts shall be made to notify
all known manufacturers or vendors of competitive
products of the intention to accept applications for
inclusion in the list of prequalified products. Notification
shall include advertisement in a trade journal or
statewide distribution when possible. In lieu of
advertising, notification may be made to vendors and
manufacturers appearing on the appropriate list maintained
by the Department of General Services of the State of
Oregon.
(ii) Applications for prequalifica.tion-of similar
products are permitted up to 15 days prior to
advertisement for bids on the products.
(iii) If an application for inclusion in a list of
prequalified products is denied, or an existing pre-
qualification revoked, the applicant shall be notified
in writing. The applicant may, within three days after
receipt of the notice, appeal the denial or revocation
to the board according to the procedure in Section 9.
(2) The board may by resolution exempt certain additional
products or classes of products upon any of the following
findings:
(a) It is unlikely that such exemption will encourage
favoritism in the awarding of the contract or substantially
diminish competition.
(b) The specification of a product by brand name or
mask, or the product of a particular manufacturer or seller,
r would result in substantial cost savings.
(c) There is only one manufacturer or seller of the
product of the quality required.
(d) Efficient utilization of existing equipment or
supplies require the acquisition of compatible equipment or
supplies.
Section 7. Bidder Disqualification.
(1) The public contracting officer may disqualify any person
as a bidder on a contract if:
(a) The person does not have sufficient financial ability
to perform the contract. Evidence that the person can acquire
a surety bond in the amount and type required shall be sufficient
to establish financial ability. If no performance bond is
required, the public contracting officer may require such In-
formation as he deems necessary to determine the bidder's i
financial ability;
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(b) The person does not have equipment available to perform
the contract;
(c) The person does not have personnel of sufficient
experience to perform the contract; or
(d) The person has repeatedly breached contractual
obligations to public and private contracting agencies.
(2) A bidder who has been disqualified shall, within three
business days after receiving notice of disqualification, in
r writing notify the public contracting officer that he wishes to
appeal his riisqualification.
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Section 8. . Bid Rejection. The public contracting officer may
reject any bid not in compliance with all prescribed public bidding
procedures and requirements, and may reject all bids if it is in
the public interest to do so.
Section 9. A eals. The procedures for appeals shall be as follows:
w " — k ) No ices of appeal need not be in any particular form
so long as they are in writing addressed to the public contracting
officer.
9r4 (2) Immediately upon receipt of such written notice of appeal,
the public contracting officer shall inform the board.
(3) Upon receipt of notice of appeal, the board shall
,,. notify the person appealing of the time and place of the hearing.
(4) The board shall conduct the hearing according to the
provisions of ORS 279.045(3) and decide the appeal within 10
days after receiving the notification and shall set forth in writing
the reasons for its decisions.
Section10. Mandatory Prequalification. Persons desiring to bid
or contracts to perform the classes of public improvements
? described in (1) below shall submit a completed prequalification
{, statement to the public contracting officer. This requirement
shall ap ly only where the public improvement contract amount
r, d
exceed25
s ,000.
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(1) The classes of work for which prequalification is
required are as follows:
x , Highway, road and street improvements
Concrete paving and flatwork
Rock crushing
Bituminous oiling
n„ Bituminous paving
Reinforced concrete construction
xf Bridge and overcrossing construction P
Dredging and piledriving
Excavation and grading
Sewer construction
Sewage treatment plants
Sewage pumping stations
Water lines
Water reservoirs
Water tanks - steel
Water tanks,;-;concrete
Mea trical wi ring'. -
Traffic signalization
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Outdoor illumination_
-,u_lding construction
Building alteration and repair
Demolition and related excavation and clearing
Painting and decorating
Plumbing
Heating
Roofing
Air corditioning
Irrigation and sprinkling systems
Drainage
Landscaping
(2) Applications for prequalification shall be submitted on
the forms provided by the board at the times designated by the board
for such prequalification.
(3) Upon establishment of the applicant's qualification,. the
public contracting officer shall issue a qualification statement.
The statement shall inform the applicant of any conditions which may
be imposed on the qualification and advise the applicant to notify
the public coi,tracting officer promptly if there has been any sub-
stantial change of conditions or circumstances which would make any
statement contained in the prequalification application no longer
applicable or untrue. The qualification statement shall also inform
the applicant that if he desires to appeal the conditions of the
prequalification varying his application, written notice must be
giver, to the public contracting officer within three business days
after receipt of the notice.
(4) If the public contracting officer does not qualify an
applicant, he shall give written notice to the applicant stating the
.reasons that prequalification has been denied and informing the
applicant of his right to appeal the decision within three business
days after receipt of the notice.
(5) Upon discovery that a person prequalified is no longer
qualified, the public contracting officer shall send notification
of proposed revocation of qualification to the person. The notice
shall state the reason for revocation and inform the person that
the revocation will be effective 10 days from the date of the
notice unless evidence that the deficiency has been corrected or
notice of intent to appeal the revocation has been filed with
the public contracting officer within 10 days.
Section 11. Retainage on Public Contracts
(1) The approved securities which shall be acceptable in lieu
of retainage fees are as follows:
(a) Bills, certificates, notes or bonds of the
United States.
(b) Other obligations of the United States or its
agencies.
(c) Obligations of any corporation wholly owned by the
federal government.
(d) Indebtedness of the Federal National Mortgage
Association.
(e) General obligation bonds of the State of Oregon or
'r
any political subdivision thereof.
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(f) Time certificates of deposit or savings account
passbooks issued by a comm�rci.al bank, savings and loan
absociation or mutual savings bank duly authorized to do
business in Oregon.
(g) Corporate bonds rated °A° or better by a recognized
x.: rating service.
(2) Deposits in lieu of retainage fees on public contracts
shall be allowed as follows:
(a) When a contractor elects to deposit securities with
a baric or trust company in lieu of 'retainage on public contracts,
G`F the securities shall be held by the custodian in fully
transferable form and under the control of the city.
(b) Non-negc.tiable securities so deposited shall have
proper .instruments attached to enable the city to effect
transfer of title should the contractor be unable to fulfill
r"G the contract obligation.
(c) The custodian_ bank or trust company shall issue a safe-
keeping receipt for the securities to the city. The receipt
shall describe the securities, the par value, the name of s
the contractor, and project number or other project identification.
(d) Unless otherwise mutually agreed, the value placed
upon said securities shall be market value.
(e) Securities deposited in the manner described above
shall be released by the bank or trust company only upon
the written instructions and authorization of the city.
(f) In lieu of the above, an escrow agreement mutually
acceptable to the contractor and the city and the bank or trust
company may be used.
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