HomeMy WebLinkAboutItem 10 Proposed Updates to Municipal Code 2.700 through 2.718 and Adding Section 2.709 AGENDA ITEM SUMMARY Meeting Date: 11/5/2012
Meeting Type:Regular Meeting
Staff Contact/Dept.: Bob Duey/Jayne
McMahan// FIN
Staff Phone No: Ext 3740//3708
Estimated Time: 5 minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE:
PROPOSED UPDATES TO MUNICIPAL CODE 2.700 THROUGH 2.718 AND
ADDING SECTION 2.709
ACTION
REQUESTED:
Conduct a public hearing and first reading on the following ordinance:
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SPRINGFIELD
AMENDING SECTIONS 2.700 THROUGH 2.718., "PUBLIC CONTRACTS" OF
THE SPRINGFIELD MUNICIPAL CODE AND SPECIFICALLY SECTIONS
2.702, 2.703, 2.704, 2.706, 2.708, 2.712 AND ADDING SECTION 2.709 TO THE
SPRINGFIELD MUNICIPAL CODE.
ISSUE
STATEMENT:
Following the October 8, 2012 Work Session the changes to the municipal code
2.700 through 2.712 and added section 2.709 are being recommended as set forth in
the attached draft ordinance.
The State of Oregon Legislature passed HB3316 which requires the City to update
our Municipal Code surrounding how we select certain consultants for engineering,
surveying and architectural professional services. The changes also present the
Council with choices as to whether to adopt certain cost savings and process
improvement by updating the dollar threshold for the formal solicitation process,
and include the use of electronic means for solicitations and contract execution.
ATTACHMENTS:
Attachment 1 - Council Briefing Memorandum
Attachment 2 - Ordinance
Attachment 3 - Municipal Code Changes
DISCUSSION/
FINANCIAL
IMPACT:
During the Oct. 8th Work Session the Council considered the following updates to
the municipal code:
1. HB3316 passage requires the use of a qualifications based selection process
only (price cannot be an evaluation criteria) for any solicitation hiring a
consultant for engineering, surveying and architectural professional services
where the anticipated fee is over $100,000.00.
2. Cost savings and process improvements
a. Increase the purchasing threshold for formal procurement to
$100,000.00
b. Allow the use of electronic means in Contracts and Solicitations
For further details see attached Council Briefing Memo.
Attachment 1, Page 1 of 3
M E M O R A N D U M City of Springfield
Date: 11/5/2012
To: Gino Grimaldi COUNCIL
From: Bob Duey and Jayne McMahan BRIEFING
Subject: Proposed updates to Municipal Code 2.700
through 2.718
MEMORANDUM
ISSUE:
Following the October 8, 2012 Work Session the changes to the municipal code 2.700 through
2.712 and added section 2.709 are being recommended as set forth in the attached draft
ordinance.
The State of Oregon Legislature passed HB3316 which requires the City to update our
Municipal Code surrounding how we select certain consultants for engineering, surveying and
architectural professional services. The changes also present the Council with choices as to
whether to adopt certain cost savings and process improvement by updating the dollar threshold
for the formal solicitation process, and include the use of electronic means for solicitations,
processing and contract execution.
COUNCIL GOALS/
MANDATE: Financially Responsible and Stable Government Services
LEGISLATIVE CHANGE
With the Oregon State Legislature 2011 Session passage of HB3316 requiring all public
agencies to use a Qualification Based Selection (QBS) process for the procurement of engineers,
architects, land surveyors, photogrammetrists, and transportation planners our Municipal Code
sections 2.700 through 2.718 will need to be updated.
The current Municipal Code sections 2.700 through 2.718 provide the City the opportunity to
use price as a primary evaluation criteria for the selection of engineers, architects, land
surveyors, photogrammetrists, and transportation planners. With the passage of HB3316 “price”
can no longer be used as an intial primary criterion in the selection process for those
professional services when the cost of those services exceeds $100,000. The City can use other
criteria for the selection process such as previous experience in “like projects”, specialized
experience, proposed approach and methodology to meet the project requirements, staff
experience, firm ownership and employment practices, project management techniques, firm
availability to the locale, and firm familiarity with project locale. Only after the City selects the
most qualified consultant can the City consider and negotiate “price”. If the City is unable to
negotiate a “price” that they feel is fair and reasonable then the City will negotiate with next best
qualified consultant. The proposed changes to the Municipal Code sections 2.700 through 2.708
remove element of price as a primary criterion in the above services and new section 2.709 has
been created to comply with the HB3316. See Attachment 1 for the proposed code and the new
section 2.709.
STAFF INITIATED PROCESS IMPROVEMENT
City staff recommended Council review the purchasing thresholds for the formal procurement
process to implement process improvement and cost savings.
Attachment 1, Page 2 of 3
Increasing Threshhold on Intermediate Purchases
The current purchasing process within our Municipal Code follows three primary limits of
authority. They are:
• Small Informal – up to $4,999.99. The City staff gathers quotes from a minimum of
three qualified suppliers via telephone, email or web services. The City documents the
quotes and the bid is awarded to the lowest bidder.
• Intermediate Bids – $5,000. to $34,999.99. Bids are solicited or gathered in writing and
ust
000 to $149,999 with each individual
are required for all contracts from $5,000.01 and $34,999.99. Bids for contracts that
are less than $35K may be awarded by the City Manager or his or her designee.
• Formal Sealed - $35,000 and above. Offers are advertised, and gathered in sealed
packets on a specific date and time opened. All bids for contracts $35K and over m
be awarded by formal action of the City Council.
State statutes allow the Intermediate Bids to range from $5,
City then able to determine their own dollar threshold for requiring the change to a Formal
Sealed process. Currently Springfield Municipal Code has the City operating on the lower end
of the continuum by requiring bids of $35,000 or more to require Council approval.
Common Practices
The City looks to process improve and to standardize across the organization. That would
whereby Springfield and Eugene staff conducting business on
.
process has many steps and State Statutes to follow that is time
ld develop
.
include leveling processes and policies with Metropolitan Wastewater Management
Commission (MWMC) as well.
WMC has adopted model rulesM
its behalf have a threshold for formal sealed bids that require approval of the Commission on
any procurement above $150,000. Springfield staff currently working on the fire merger are
looking to standardize policies and procedures with the City of Eugene as well. The City of
Eugene’s Municipal Code 2.1430 requires formal bidding for purchases greater than $100,000
enchmarking other municipalities of our size: Bend -purchases greater than $100,000 must be B
formally bid, Gresham - purchases greater than $50,000 must be formally bid (Gresham is
looking to raise their threshold to $100,000), and Corvallis- purchases of greater than $50,000
must be formally bid.
he formal solicitation T
consuming for the bidding private sector community, City Staff, and the City Attorney. The
formal solicitation process has a lengthy timeline from the time the advertisement of the
opportunity is published to when the contract is signed after Council approval. With a shorter
process to solicit goods and services, the City would benefit from the cost savings in terms of
staff resources, advertising and printing costs. All departments across the City would benefit
from the cost savings including CMO. The City would also benefit from the shorter timelines
from solicitation to acquisition for the needed goods and services. The private sector would be
able to submit bis and proposals with less committement of staff and resources.
A streamlined process would continue to be a competitive process. The City wou
standardized bidding templates and guidelines for staff to follow to ensure bonafide bids are
being solicited. Informality does not dispense with the requirements for documentation and
accountability. Further, the process would remain a fair and transparent process as it is today
These intermediate procurements would continue to be posted on the City’s website, as well as,
sent to those in our supplier database. These measures would thus ensure the continued public
confidence in the objectivity, transparency and the procurement of goods and services at the
lowest price.
Attachment 1, Page 3 of 3
Recommendation
ity Staff recommends that Springfield increase the threshold of intermediate procurements
00,000. (The State Statute gives us the authority to raise this threshold to
purchasing process follows three primary limits of authority.
untability in the
g authority for contracts from $50,000 to $100,000
in
C
from $35,000 to $1
$150,000.)
The proposed
• Small Informal – up to $5,000.
• Intermediate Bids – $5,000 to $99,999.99. To ensure continued acco
process contract award and signin
would go to the City Manager. Contracts from $5,000 to $49,999.99 would be signed
and awarded by Department Directors. This graduated authority will be implemented
the purchasing guidelines will provide additional oversight and accountability .
• Formal Sealed - $100,000 and above. All bids for contracts $100,000 and over must be
awarded by formal action of the City Council.
Electronic Contracting
The final area of Municipal Code update that staff recommended is around the area of electronic
ignatures. In the current business environment the need for an
N ORDINANCE OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDING
bidding and signatures.
Currently the City has a small paragraph, 2.712 Electronic Publications, in the Municipal Code
that addresses the publicizing bids and requests for proposals but it doesn’t address solicitation,
ubmittal and electronic ss
electronic contracting process has become almost a necessity. In adopting a code that gives staff
the ability and flexibility to use electronic solicitation and submission, we would be addressing
the needs to expedite contract execution, clip wrap or click through acceptance on electronic
applications that require an individual to click “ok” to accept terms and conditions, and
appropriate retention of electronically stored documents based on State requirements. The state
statute allows us the ability to have a Code that legally recognizes electronic and electronic
contracts. Further, the use of electronic process feeds nicely into the Governor’s Green
Executive Order 3-03 requiring State agencies to develop policies and practice to make Oregon
a more sustainable state, as well as, Oregon Sustainability Act ORS.184.421. This would also
result in a cost savings, staff time as staff would no longer have to prepare documents to mail,
UPS or Fed Ex, savings on paper and printing, and mailing costs. Lastly, the environment would
benefit by reduced greenhouse gases from moving the documents physically in trucks or planes.
This electronic process would be used at the discretion of staff and not in all instances.
RECOMMENDED ACTION: Conduct a public hearing and first reading on the following
ordinance:
A
SECTIONS 2.700 THROUGH 2.718., "PUBLIC CONTRACTS" OF THE SPRINGFIELD
MUNICIPAL CODE AND SPECIFICALLY SECTIONS 2.702, 2.703, 2.704, 2.706, 2.708,
2.712 AND ADDING SECTION 2.709 TO THE SPRINGFIELD MUNICIPAL CODE.
No further action. First reading only.
ORDINANCE NO. ___________ (General)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SPRINGFIELD AMENDING SECTIONS 2.700
THROUGH 2.718., "PUBLIC CONTRACTS" OF THE SPRINGFIELD MUNICIPAL CODE AND
SPECIFICALLY SECTIONS 2.702, 2.703, 2.704, 2.706, 2.708, 2.712 AND ADDING SECTION
2.709 TO THE SPRINGFIELD MUNICIPAL CODE
WHEREAS, the 76th Oregon Legislative Assembly 2011 Regular Session enacted House Bill
3316;
WHEREAS, HB 3316 imposes a qualification based selection (QBS) process for hiring for
architectural, engineering, photogrammetric mapping, transportation planning services for
projects that require compliance with the national Environmental Policy Act or land surveying;
WHEREAS, HB 3316 provides that a contracting agency shall select consultants to provide
architectural, engineering, photogrammetric mapping, transportation planning services involving
NEPA compliance or land surveying on the basis of a consultant's qualifications for the type of
professional service required;
WHEREAS, HB 3316 provides that a contracting agency may solicit or use pricing policies and
proposals or other pricing information including the number of hours proposed for the services
required, expenses, hourly rates, and overhead to determine consultant's compensation only
after the contracting agency has selected a candidate;
WHEREAS, City Finance Department, its office of Procurement and Contracts, and the Office of
City Attorney have thoroughly reviewed its requirements and consulted with respective City of
Springfield departments regarding its implementation;
WHEREAS, Sections 2.700 through 2.718 of the Springfield Municipal Code require adjustment
and amendment and the addition of a new section 2.709 in order to comply with the
requirements of qualification based selection and other amendments arising out of or related to
the qualification based selection;
WHEREAS, the City wishes to provide for the conduct of transactions involving city procurement
and contracts for services, equipment, facilities and public infrastructure construction by
electronic means by the addition of section 2.712; and
WHEREAS, the City wishes to provide for adjustment in the purchasing thresholds of the
purchasing process for formal bids and formal sealed bids but after such adjustment shall
remain within the range mandated by ORS 279B.070.
NOW, THEREFORE, based on the foregoing recitals, the Council of the City of Springfield does
ordain as follows:
1. Springfield Municipal Code Sections 2.700 through Sections 2.710 attached hereto and
incorporated herein by reference are hereby adopted.
Attachment 2, Page 1 of 2
Attachment 2, Page 2 of 2
2. The proposed amendments to Springfield Municipal Code Sections 2.700 through Section
2.718 and new section 2.709, "Public Contracts", attached hereto and incorporated herein by
reference are hereby adopted.
3. The City Manager and his/her designee, the City Finance Director, and City Procurement
and Contracts Manager are authorized to take all necessary action to implement HB 3316 as set
forth in the amendments to Springfield Municipal Code Sections 2.700 through 2.718.
4. The City Manager and his/her designee, the City Finance Director, and City Procurement
and Contracts Manager are authorized to take all necessary actions to implement Springfield
Municipal Code Sections 2.709 regarding City procurement and contracts for goods, services,
equipment, facilities and public infrastructure construction by electronic means.
5. The City Manager and his/her designee, the City Finance Director, and the City
Procurement and Contracts Manager are authorized to take all necessary actions to implement
the adjustment in the purchasing process thresholds for formal and sealed bids.
This Ordinance adopted by the Common Council of the City of Springfield this ______ day of
____________________, 2012, by a vote of ______ for and ______ against.
________________________________
Christine L. Lundberg, Mayor
________________________________
Amy Sowa, City Recorder
PUBLIC CONTRACTS
2.700 Authority.
(1) Except as provided herein, the Model Rules adopted by the Attorney General under ORS
subchapters 279A, 279B and 279C (the “Model Rules”) do not apply.
(2) As expressly provided otherwise herein, or by subsequent ordinance or resolution, the
Model Rules, Divisions 46, 47, 48 and 49, adopted by the Attorney General under ORS subchapters
279A, 279B and 279C as they now exist, and as they may be amended in the future, and in the Springfield
Municipal Code, are hereby adopted as the city’s public contracting rules. Words and phrases used by
these rules that are defined in ORS subchapters 279A, 279B and 279C and in the Model Rules have the
same meaning as defined in ORS subchapters 279A, 279B and 279C and the Model Rules. In the event
that rules adopted by the local contract review board do not address a particular situation, the Model
Rules apply. [Section 2.700 added by Ordinance No. 6115, enacted February 22, 2005; amended by
Ordinance No. 6181, enacted July 17, 2006.]
2.701 Contract Review Board/Contracting Agency.
The common council of the city of Springfield is designated and shall continue as the local
contract review board under the state of Oregon Public Contracting Code. The contract review board may,
from time to time, delegate its powers and responsibilities consistent with the Oregon Public Contracting
Code, the Model Rules, or the Springfield Code. Except as may be specified in this chapter, the city
manager, or his/her designee, and the finance director of the city of Springfield’s finance department are
designated as the city’s “contracting agency” for purposes of contracting powers and duties assigned to
the city of Springfield as a “contracting agency” under the state of Oregon Public Contracting Code or the
Model Rules. Except as otherwise provided in these rules, the powers and duties of the local contract
review board, under the Public Contracting Code, shall be exercised and performed by the common
council of the city of Springfield and all powers and duties given or assigned to contracting agencies by
the Public Contracting Code shall be exercised or performed by the city manager or his/her designee or
the finance director. [Section 2.701 added by Ordinance No. 6115, enacted February 22, 2005; amended
by Ordinance No. 6181, enacted July 17, 2006.]
2.702 Definitions.
As used in this chapter, the following words or phrases shall have the following meanings. All
words and phrases not defined in this section shall have the meanings ascribed to them in the Public
Contracting Code or the Model Rules adopted by the Oregon Attorney General thereunder (“Model
Rules”):
(1) Formal Quote. Procedure pursuant to which written offers are solicited by advertising or
other writing stating the quantity and quality of goods or services to be acquired, and which offers are
received by the contracting agency on or before a stated date. In soliciting formal quotes, the contracting
agency shall seek quotes from a sufficiently large number of potential offerors to insure sufficient
competition to meet the best interest of the city. An award based on less than three formal quotes may be
made provided the contracting agency makes a written record of the effort to obtain quotes.
(2) Informal Quote. Procedure pursuant to which written or verbal offers are gathered by
correspondence, telephone, email or personal contact stating the quantity and quality of goods or services
to be acquired. In soliciting informal quotes, the contracting agency shall seek quotes from a sufficiently
ATTACHMENT 3
Attachment 1 to the Ordinance
large number of potential offerors to insure sufficient competition to meet the best needs of the city. An
award based on less than three quotes may be made, provided the contracting agency makes a written
record of the effort to obtain quotes.
(3) Personal Services Contract.
(a) General. A contract to retain the services of an independent contractor as set forth in
Section 2.708. The contract shall be predominantly for services requiring special training or
certification, independent judgment, skill and experience.
(b) Quality Based Selection (“QBS”). Certain architectural, engineering, photogrammetric
mapping, transportation planning services for projects that require compliance with the National
Environmental Policy Act, or land surveying services procured under ORS 279C.105 or 279C.110
and related services procured under ORS 279C.120 as set forth in Section 2.709.
(4) Sole Source Procurement. A contract for goods or services, or a class of goods or
services, available from only one source.
(5) Work of Art. All forms of original creations of visual art, including, but not limited to:
(a) Painting. All media, including both portable and permanently affixed or integrated works
such as murals;
(b) Sculpture. In the round, bas-relief, high relief, mobile, fountain, kinetic, electronic, etc.,
in any material or combination of materials;
(c) Miscellaneous Art. Prints, clay, drawings, stained glass, mosaics, photography, fiber and
textiles, wood, metal, plastics and other materials or combination of materials, calligraphy, and
mixed media, any combination of forms of media, including collage. [Section 2.702 added by
Ordinance No. 6115, enacted February 22, 2005; amended by Ordinance No. 6181, enacted July 17,
2006.]
2.703 Exempt Contracts.
Except as may be modified by this chapter, the following classes of public contracts are hereby
exempted from competitive procurement:
(1) Any contract exempted by the state of Oregon Public Contracting Code or Model Rules,
including, but not limited to, the following classes of contracts specifically exempted by the state of
Oregon Public Contracting Code or Model Rules: ORS 279A.025, “Application of Public Contracting
Code”; ORS 279A.180, “Purchases Through Federal Programs”; ORS 279A.190, ORS 279C.335, “All
Public Improvement Contracts under $5,000”; ORS 279B.065, “Goods and Services Contracts under
$5,000”; ORS 279C.335, “Certain Contracts in Response to a Declared Emergency”; ORS 279C.335,
“Energy Savings Performance Contracts,” (an energy savings performance contract is defined as a public
contract between a public agency and a qualified energy service company for the identification,
evaluation, recommendation, design and construction of energy conservation measures, including a
design-build contract that guarantees energy savings or performance); OAR 137-046-0130, “Transfers of
Fire Protection Equipment Between Fire Department”; ORS 279A.200 et seq., “Cooperative
Procurement”; and, ORS 279A.220; “Interstate Cooperative Procurements”; QRF requirements; ORS
279.835-279.855; contracts where state or federal funding requirements require other than competitive
procurement;
ATTACHMENT 3
Attachment 1 to the Ordinance
(2) Contracts for goods or services, or a class of goods or services, which are available from
only one source. To the extent reasonably practical, the contracting agent shall negotiate with the sole
source to obtain contract terms advantageous to the city. The determination of a sole source must be based
on written findings that may include:
(a) That the efficient utilization of existing goods requires the acquisition of compatible
goods or services,
(b) That the goods or services required for the exchange of software or data with other public
or private agencies are available from only one source,
(c) That the goods or services are for use in a pilot or experimental project,
(d) Other findings that support the conclusion that the goods or services are available from
only one source, or
(e) Sole source contracts for goods or services, or classes of goods or services, which are
available from only one source but do not exceed $100,000.00 must be approved by the contracting
agent. Sole source contracts for goods or services, or classes of goods or services, which are
available from only one source which exceed $100,000.00 must be approved by the local contract
review board;
(3) A special procurement provided that the contracting agency adheres to the requirements
of ORS 279B.085;
(4) A development agreement entered into between the city of Springfield and a person or
entity responsible for carrying out conditions of approval of a land use decision of the city of Springfield.
The term “land use decision” has the meaning provided by ORS 197.015;
(5) Notwithstanding any exemption to competitive bidding provided for in Oregon statute, in
the event of an emergency involving an immediate hazard to the public health, safety, or welfare, the city
manager, finance director or public works director may secure necessary goods and/or services without a
formal competitive selection process, provided that the local contract review board at a regularly
scheduled meeting within 30 days of the procurement is furnished with a full report of the circumstances
and costs of the materials and/or services secured, and the method used for the selection of the particular
contractor;
(6) Contracts for the purchase of copyrighted materials where there is only one supplier
available within a reasonable purchase area for such goods;
(7) Contracts for the purchase of advertising, including that intended for the purpose of
giving public or legal notice;
(8) Contracts for the purchase of services, equipment or supplies for maintenance, repair or
conversion of existing equipment if required for efficient utilization of such equipment;
(9) Contracts for the purpose of investment of public funds or the borrowing of funds;
(10) Purchases of goods or services pursuant to a requirements contract which was established
by a formal competitive selection process. Purchases may also be made at prices established by a
requirement contract or other agreement between another public body and a contractor if the requirements
contract was established by a formal competitive selection process;
(11) Contracts for purchase or sale of services, materials or products traditionally provided by
the city;
ATTACHMENT 3
Attachment 1 to the Ordinance
(12) Contracts for the purchase of goods or services where the rate or price for the goods or
services being purchased is established by federal, state or local regulating authority;
(13) Any other contract (including brand name specification contracts) where the public
interest would be promoted by exempting the contract from the competitive bidding process, provided
that the contract review board adheres to the Public Contracting Code and the Model Rules in making the
exemption. [Section 2.703 added by Ordinance No. 6115, enacted February 22, 2005; amended by
Ordinance No. 6181, enacted July 17, 2006.]
(14) Any contract exempted by the specific provisions of this Code, "Public Contracting",
Section 2.700 through Section 2.718, including specifically, but not limited to, Section 2.709.
2.704 Contracting Authority and Responsibilities.
Administrative staff and department have contracting authority and responsibilities as follows:
(1) The city manager (or designee) and department heads are authorized to:
(a) Enter into city contracts not to exceed $100,000.00 without additional authorization of
the contract review board;
(b) Recommend that the contract review board approve or disapprove contract awards in
excess of the amount specified in Springfield Municipal Code sections 2.706(2) and (3);
(c) Consistent with this chapter, adopt forms, computer software, procedures, and
administrative policies for all city purchases.
(2) Purchases of goods from city employees shall require authorization of the city manager
or designee. Provision of services by city personnel shall be in accordance with the city of Springfield
personnel policies, and other applicable law.
(3) All contracting by departments shall be according to approved city purchasing procedures
adopted by the contracting agency or the contract review board.
(4) Each department shall operate within its budget, or seek supplemental budgetary
authority from city council with respect to the contract.
(5) Each department shall plan purchase requirements sufficiently in advance so that orders
can be placed in economical quantities.
(6) Purchases and contracts shall be negotiated on the most favorable terms in accordance
with this chapter, other adopted ordinances, state laws, policies and procedures.
(7) The city manager, his/her designee or finance director is authorized to perform all acts
necessary to implement this public contracts ordinance, including specifically the terms and conditions set
forth herein.
(8) The contract review board or the contracting agency may reject all offers, proposals and
all bids in accordance with OAR 137-047-0650.
(9) The contract review board or the contracting agency may cancel a procurement
solicitation in accordance with OAR 137-047-0660. [Section 2.704 added by Ordinance No. 6115,
enacted February 22, 2005; amended by Ordinance No. 6181, enacted July 17, 2006.]
ATTACHMENT 3
Attachment 1 to the Ordinance
2.706 Public Contracts for Goods and Services.
This section applies to public contracts that are not contracts for personal services (Springfield
Municipal Code section 2.708) or contracts for public improvements (Springfield Municipal Code section
2.710). A public contract shall not be artificially divided or fragmented to qualify for a different award
procedure than that provided by this section.
(1) Except as may be permitted by this chapter, all public contracts for goods and services
shall be awarded by the council based on competitive sealed bids or competitive sealed proposals
pursuant to the Public Contracting Code.
(2) The following classes of public contracts for goods and services and respective award
procedures are created:
(a) Public contracts valued at not exceeding $5,000.00. Notwithstanding any exception to
competitive bidding provided for by Oregon statute, a public contract for an amount which is valued
at $5,000.00 or less shall be awarded by the contracting agency based on informal quotes.
(b) Public contracts valued in excess of $5,000.00 but not exceeding $100,000.00. A public
contract for an amount which is valued in excess of $5,000.00 but not exceeding $100,000.00 shall
be awarded by the contracting agency based on formal quotes.
(c) Public contracts in excess of $100,000.00. A public contract for an amount which is
valued in excess of $100,000.00 shall be awarded by the city council based on competitive sealed
bidding (ORS 279B.055) or competitive sealed proposals (ORS 279B.060) pursuant to the Public
Contracting Code.
(3) Amendments to the contracts must fall within the scope of the original contract or
solicitation or proposal. Contract amendments must be in writing. Amendments to public contracts valued
at $5,000.00 or less may not cause the contract price to increase in excess of 50 percent. Amendments for
public contracts for goods and services valued at in excess of $5,000.00 but not exceeding $100,000.00
may not cause the contract price to exceed an amount that is greater than 30 percent of the original
contract price. Amendments for public contracts for goods and services valued at in excess of
$100,000.00 may not cause the contract price to exceed an amount that is greater than 30 percent of the
original contract price. Amendments shall not be used to circumvent rules establishing approvals at
certain monetary levels.
(4) Amendments to contracts exceeding the limits in subsection (3) of this section may occur
if the city council determines that it is not reasonably feasible to require additional competitive
procurement to complete the purpose of the contract; otherwise, the council shall direct additional
competitive procurement and the competitive procurement procedure required for the amendment.
[Section 2.706 added by Ordinance No. 6115, enacted February 22, 2005; amended by Ordinance No.
6181, enacted July 17, 2006.]
2.708 General Personal Services Contracts.
(1) Except as may be specifically provided in Section 2.709, Section 2.708 does not apply to
personal services contracts for QBS services as defined in Section 2.702(3)(b).
(2) Except as may be permitted by this chapter, all general personal services contracts shall
be awarded by the council based on competitive sealed bids or competitive sealed proposals pursuant to
the Public Contracting Code.
ATTACHMENT 3
Attachment 1 to the Ordinance
(3) The following procedures shall apply to the award of general personal services contracts:
(a) General personal services contracts will be used to retain the services of independent
contractors. A personal services contract shall not be artificially divided or fragmented to qualify for
a different award procedure than that provided by this section. Nothing in this section shall apply to
the employment of regular city employees.
(b) General personal service contracts valued at not exceeding $5,000.00. A public contract
for an amount which is valued at $5,000.00 or less shall be awarded by the contracting agency based
on informal quotes.
(c) General personal service contracts valued at in excess of $100,000.00 but not exceeding
$100,000.00.00 Personal services contracts involving an anticipated fee valued at in excess of
$5,000.00 but not exceeding $100,000.00 per fiscal year shall be awarded by the contracting agency
following solicitation of offers for personal services by written invitation or advertisement in
sufficient number to provide a choice for the city from among qualified service providers. The
contracting agency shall determine the selection criteria to be included in the written invitation or
advertisement and shall have authority to negotiate and enter into the contract.
(d) General personal service contracts having an anticipated fee valued at in excess of
$100,000.00 shall be awarded by the city council based on competitive sealed bids or competitive
sealed proposals pursuant to the city’s public contracting rules and any other selection criteria which
may be required by the contracting agency or the city council before offers are solicited.
(e) The following contracts or classes of contracts for personal services shall not be subject
to the provisions of this section or the Model Rules unless provided in this subsection: accountants,
appraisers, artists for the creation of a work of art, computer programmers, communications
consultants, consultants, data processing consultants, investment insurance consultants, lawyers,
psychologists, management systems consultants, marketing consultants, public relations consultants,
training consultants, transportation planning services for projects not requiring compliance with the
National Environmental Policy Act and any other personal service contracts entered into for
positions which may be considered as city counsel/public officer type positions, including, but not
limited to, city prosecutor, city attorney, city bond counsel, city benefits consultant, financial
advisor, temporary management consultants or similar city counsel or public official type positions;
and, provided further, nothing herein shall be construed as prohibiting the contract review board or
contracting agency from determining to require that a particular contract for personal services
though listed in this subsection shall be subject to other provisions of this section. Nevertheless, the
requirements of subsections (4), (5) through (10) of this section shall apply, and all such contracts
having an anticipated fee exceeding $100,000.00 shall be awarded by the city council.
(4) The following criteria shall be considered in the evaluation and selection of a general
personal services contractor. This section does not preclude the use of other additional criteria:
(a) Total cost to the agency for delivery of services;
(b) Expertise of the contractor in the required area of specialty;
(c) References from completed projects managed by the contractor;
(d) Capacity and capability to perform the work, including any specialized services within
the time limitations for the work;
(e) Educational and professional record, including past record of performance on contracts,
including past record of performance on contracts with governmental agencies and private parties
with respect to cost control, quality of work, ability in these schedules and contract administration,
where applicable;
ATTACHMENT 3
Attachment 1 to the Ordinance
(f) Availability to perform the assignment and familiarity with the area in which the specific
work is located, including knowledge of designer techniques peculiar to it, where applicable;
(g) Utilization of locally procured goods, services, or personnel;
(h) Other services provided by the contractor not specifically listed in the request for
proposal;
(i) Timeliness of delivery of services;
(j) Other criteria specially listed in the solicitation document on a case by case basis.
(4) Direct contracts for services of architects, engineers, and land surveyors. The contract
review board or the contracting agency may enter into an architectural, engineering or land surveying
services contract directly with a consultant if the project described in the contract consists of work that
has been substantially described, planned or otherwise previously studied or rendered in an earlier
contract with a consultant that was awarded under a personal services contract as set forth in this section
and the new contract is a continuation of that project. When entering into a contract under this section, the
local contracting agency shall consider the criteria set forth in subsections (3)(a), (b), (d) through (f) and
(i) of this section and in the criteria set forth in ORS 279C.110.
(5) Unless otherwise approved by the city manager, or designee, all general personal services
contracts shall require the following provisions:
(a) The contractor to defend, indemnify and hold harmless the city, its officers, agents and
employees against and from any and all claims for damages of any kind arising out of or connected
in any way with the contractor’s performance there under and shall include a waiver of contractor’s
right to ORS 30.285 and ORS 30.287, Indemnification and Defense;
(b) A provision requiring the independent contractor to obtain and maintain liability
insurance coverage in at least the amount of the city’s tort liability limits, name the city as an
additional named insured during the life of the contract and where appropriate additional insurance
provisions, including, but not limited to, errors and omissions coverage;
(c) Provisions requiring the contractor to maintain all contract provisions mandated by state
law and the Springfield Municipal Code which may be incorporated in the personal service contract
by reference to state law.
(6) The selection procedures described in this section may be waived by the city manager, at
his/her 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.
(7) The city manager, or designee, the contracting agency and the department heads are
delegated the authority to sign all personal service contracts.
(8) Nothing contained in this section shall preclude the city from complying with provisions
of federal or state law that require the city to utilize a different selection or contracting procedure.
(9) Amendments to general personal services contracts shall comply with the Public
Contracting Code section 2.706(3) or (4).
(10) General personal service contract proposals may be modified or withdrawn at any time
prior to the conclusion of discussions with an offeror. [Section 2.708 added by Ordinance No. 6115,
enacted February 22, 2005; amended by Ordinance No. 6181, enacted July 17, 2006.]
ATTACHMENT 3
Attachment 1 to the Ordinance
2.709 Qualified Based Selection (QBS). Personal Services Contracts for architectural, engineering,
photogrammetric mapping, transportation planning services for projects that require compliance with the
National Environmental Policy Act, or land surveying services procured under ORS 279C.105 or
279C.110 and related services procured under ORS 279C.120.
(1) Definitions:
(a) “QBS Consultant” means an Architect, Engineer, Photogrammetrist, Transportation
Planner, Land Surveyor or provider of Related Services. A Consultant includes a business entity that
employs Architects, Engineers, Photogrammetrists, Transportation Planners, Land Surveyors or providers
of Related Services, or any combination of the foregoing. Provided, however, when a Contracting
Agency is entering into a direct Contract under OAR 137-048-0200(1)(c) or (d), the “Consultant” must be
an Architect, Engineer, Photogrammetrist, Transportation Planner or Land Surveyor, as required by ORS
279C.115(1).
(b) “Estimated Fee” means Contracting Agency’s reasonably projected fee to be paid for a
Consultant’s services under the anticipated Contract, excluding all anticipated reimbursable or other non-
professional fee expenses. The Estimated Fee is used solely to determine the applicable Contract
solicitation method and is distinct from the total amount payable under the Contract. The Estimated Fee
shall not be used as a basis to resolve other Public Contracting issues, including without limitation, direct
purchasing authority or Public Contract review and approval under ORS 291.047.
(c) “Price Agreement” means for purposes of this Section 2.709 is limited to mean an
agreement related to the procurement of Architectural, Engineering, Photogrammetric Mapping,
Transportation Planning or Land Surveying Services, or Related Services, under agreed-upon terms and
conditions, including, but not limited to terms and conditions of later work orders or task orders for
Project-specific Services, and which may include Consultant compensation information, with:
aa) No guarantee of a minimum or maximum purchase; or
bb) An initial work order, task order or minimum purchase, combined with a
continuing Consultant obligation to provide Architectural, Engineering, Photogrammetric Mapping,
Transportation Planning or Land Surveying Services or Related Services in which the Contracting
Agency does not guarantee a minimum or maximum additional purchase.
(d) "Engineer" means a person who is registered and holds a valid certificate in the practice
of land surveying in the State of Oregon, as provided under ORS 672.002 to 672.325, and includes
all terms listed in ORS 672.002(2).
(e) "Land surveyor" means a person who is registered and holds a valid certificate in the
practice of land surveying in the State of Oregon, as provided under ORS 672.002 to 672.325, and
includes all terms listed in ORS 672.002 (2).
(f) "Photogrammetric mapping" has the meaning given that term in ORS 672.002.
(g) "Photogrammetrist" has the meaning given that term in ORS 672.002.
(h) "Transportation planning services" means transportation planning services for projects
that require compliance with the National Environmental Policy Act, 42 U.S.C. 4321 et seq.
ATTACHMENT 3
Attachment 1 to the Ordinance
(i) "Project" means all components of a Contracting Agency's planned undertaking that
gives rise to the need for a Consultant's Architectural, Engineering, Photogrammetric Mapping,
Transportation Planning or Land Surveying Services, or Related Services, under a Contract.
(2) QBS Consultant Selection:
(a) The City shall select consultants to provide architectural, engineering, photogrammetric
mapping, land surveying, or transportation planning services on the basis of the consultant's
qualifications for the type of professional service required. Upon selection of the most qualified
consultant, the City may solicit or use price proposals, pricing policies, or pricing information as set
forth in Section 2.709(2)(c) and (d). This provision does not apply to contracts of less than
$5,000.00. ORS 279B.065
(b) When selecting the most qualified consultant, the City shall follow the applicable
selection procedure under OAR 137-048-0200 (Direct Appointment), OAR 137-048-0210 (Informal
Selection) or OAR 137-048-0220 (Formal).
(c) In selecting consultants pursuant to 2(a) and 2(b), the City shall consider the respective
criteria set forth in OAR 137-048-200, 210 and 220.
(d) If the screening and selection procedures for review of the qualifications set forth in 2(b)
result in City's determination that two or more candidates are equally qualified, the City will select a
candidate through a process, which is not based on the candidate's pricing policies, proposals or
other pricing information.
(e) After consideration of the qualifications as set forth in 2(c) and/or 2(d) hereinabove, the
City shall determine a selected candidate to mutually discuss and refine the scope of the services for
the project and shall negotiate conditions including, but not limited to, compensation level and
performance schedule based on the scope of services. The City shall be the sole determiner as to
whether the compensation is reasonable and fair to the City.
(f) The City shall solicit or use pricing policies and proposals and other pricing information
including the number of hours proposed for the service required, expenses, hourly rates, and
overhead to determine consultant compensation only after the City has selected a candidate.
(g) The City may adjust the procedures to accommodate the City's scope, schedule, or
objective for a particular project if the City’s estimated cost of the consultant services for the project
does not exceed $250,000.00.
(h) If the City and the selected candidate are unable, for any reason, to negotiate a contract at
a compensation level that is reasonable and fair to the City, the City shall formally terminate
negotiations with the selected candidate. The City may then negotiate with the next most qualified
candidate. The negotiation process may continue in this manner through successive candidates until
an agreement is reached or the City terminates the consultant contracting process.
(6) The requirement set forth in SMC 2.708(5), (6), (7), (8), (9), and (10) regarding General
Personal Services Contracts shall also apply to the Personal Services Contracts in this Section 2.709.
2.710 Public Improvement Contracts.
A public improvement contract is defined pursuant to the Public Contracting Code and does not
include contracts for minor alterations, ordinary repair and maintenance of public improvements,
ATTACHMENT 3
Attachment 1 to the Ordinance
contracts for projects for which no funds of the city are directly or indirectly used except for participation
that is incidental or related primarily to project design or inspection, and does not include any other
construction contract that is not defined as a public improvement under the Public Contracting Code. A
public improvement contract shall not be artificially divided or fragmented to qualify for a different
award procedure than that provided by this section.
(1) Except as may be permitted by this chapter, all public improvement contracts shall be
awarded by the council based on competitive sealed bids or competitive proposals pursuant to the Public
Contracting Code.
(2) Exemptions. The requirements of subsection (1) of this section do not apply to the
following classes of public improvement contracts.
(a) Public improvement contracts valued at not exceeding $5,000.00. Notwithstanding any
exemption from competitive bidding provided for by Oregon statute, public improvement contracts
valued at $5,000.00 or less shall be awarded by the contracting agency based on informal quotes;
(b) Public improvement contracts valued in excess of $5,000.00 but not exceeding $-
100,000.00_ Public improvement contracts valued at in excess of $100,000.00 but not exceeding
$100,000.00 shall be awarded by the contracting agency based on formal quotes;
(c) Notwithstanding any exemption from competitive bidding provided for by Oregon
statute, emergency public improvement contracts may be exempted from competitive bidding if the
contracting agency determines that an emergency exists and that conditions require the prompt
execution of a contract. Emergency public improvement contracts shall be awarded in accordance
with the Public Contracting Code. The contracting agency shall provide the council with a written
statement indicating the nature of the emergency and stating with particularity the emergency
conditions and why they pose an imminent threat to the public health, safety or welfare. The
contracting agency shall not declare the same emergency more than two times in any 90-day period;
(d) By resolution, the city council may exempt from competitive bidding a public
improvement contract or class of public improvement contracts not otherwise exempt under this
section pursuant to ORS 279C.335.
(3) A request for proposal shall comply with the provisions of ORS 279C.400.
(4) If all responsive offers on a public improvement contract exceed the budget for the
project, the contracting agency may, prior to contract award, negotiate for a price within the budget under
the following procedures:
(a) Negotiations shall start with the lowest responsive, responsible offeror. If negotiations are
not successful, then the contracting agency may negotiate with the second lowest responsive,
responsible offeror, and so on.
(b) Negotiations may include value engineering and other options to attempt to bring the
project cost within the budgeted amount.
(c) 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 documents.
(d) The records of an offeror used in contract negotiations under this section are not subject
to public inspection until after the negotiated contract has been awarded or the negotiation process
has been terminated.
(5) The contract review board or the contracting agency may reject all offers, proposals and
all bids.
ATTACHMENT 3
Attachment 1 to the Ordinance
(6) Amendments to public improvement contracts shall comply with the Public Contracting
Code section 2.706(3) or (4).
(7) The performance and payment bonds requirements and exceptions of the Public
Contracting Code shall apply to all public improvement contracts. [Section 2.710 added by Ordinance No.
6115, enacted February 22, 2005; amended by Ordinance No. 6181, enacted July 17, 2006.]
2.712 Electronic Proposals/Bidding
(1) The City of Springfield may conduct transactions involving City procurement and
contracts for services, equipment, facilities and infrastructure construction including notices of requests
for proposals and requests for bids by electronic means or create or retain an electronic record of such a
transaction. The Procurement and Contracts Manager may recommend and the City may establish
purchasing guidelines to implement this electronic transactions process.
(2) The Procurement and Contracts Manager may determine that a procurement or
contracting process shall be conducted solely through electronic process, solely through non-electronic
process, or utilizing the availability of both electronic and non-electronic process.
(3) (a) A record or signature may not be denied legal effect or enforceability solely because
it is in electronic form.
(b) A contract may not be denied legal effect or enforceability solely because an
electronic record was used in its formation.
(c) If a law requires a record to be in writing, an electronic record satisfies the law.
(d) If a law requires a signature, an electronic signature satisfies the law.
(4) If a law requires a signature or record to be notarized, acknowledged, verified or made
under oath, the requirement is satisfied if the electronic signature of the person authorized to perform
those acts, together with all other information required to be included by other applicable law, is attached
to or logically associated with the signature or record.
(5) If parties have agreed to conduct a transaction by electronic means and a law requires a
person to provide, send or deliver information in writing to another person, the requirement is satisfied if
the information is provided, sent or delivered, as the case may be, in an electronic record capable of
retention by the recipient at the time of receipt. An electronic record is not capable of retention by the
recipient if the sender or its information processing system inhibits the ability of the recipient to print or
store the electronic record.
(6) Electronic transactions are subject to all other applicable substantive law requirements
including, but not limited to, ORS 279, 279A, 279B and 279C as well as City of Springfield public
contracting requirements.
(7) The applicable provisions of the Uniform Electronic Transactions Act. ORS 84.001 et
seq. shall apply to all electronic transactions undertaken by the City of Springfield.
ATTACHMENT 3
Attachment 1 to the Ordinance
ATTACHMENT 3
Attachment 1 to the Ordinance
2.714 Disposition of Surplus Property.
The contracting agency shall have the authority to dispose of surplus property by any means
determined to be in the best interest of the city with due regard for the value the city will receive from the
disposal of the surplus property, including, but not limited to:
(1) Sold to the highest qualified buyer meeting the sale terms and the sale has been
advertised at least once in a newspaper of general circulation in the Springfield area not less than one
week prior to the sale;
(2) Traded in on the purchase of replacement equipment or supplies;
(3) Sold at public auction advertised at least once in a newspaper of general circulation in the
city of Springfield not less than one week prior to the auction. The published notice shall specify the time,
place and terms upon which the personal property shall be offered and a general description of the
personal property to be sold;
(4) Sold at a fixed price retail sale;
(5) Contracted for use, operation or maintenance by one or more private or public entities.
Prior to approval of such a contract, the city manager shall determine that the contract will promote the
economic development of the city;
(6) Recycle, destroy or otherwise dispose of the property when it is determined that the value
and the condition of the property does not warrant the cost of sale;
(7) All personal property sold pursuant to this section shall be sold as is without any
warranty, either expressed or implied, of any kind;
(8) Sales of surplus personal property may be conducted electronically. [Section 2.714 added
by Ordinance No. 6115, enacted February 22, 2005; amended by Ordinance No. 6181, enacted July 17,
2006.]
2.718 Purchasing Policies.
The contracting agency may adopt appropriate purchasing policies dealing with contracting and
bidding, procedures, ethics, environmental considerations and the like, subject to review and modification
by the contract review board. [Section 2.700 added by Ordinance No. 6115, enacted February 22, 2005;
amended by Ordinance No. 6181, enacted July 17, 2006.]
2.722 Reserved.