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Study Session

Minutes
Monday, March 15, 2010

MINUTES FOR CITY COUNCIL STUDY SESSION

Monday, March 15, 2010

Siskiyou Room, 51 Winburn Way

 

 

Mayor Stromberg called the meeting to order at 5:30 p.m. in the Siskiyou Room.

 

Councilor Navickas, Silbiger, Jackson, Voisin and Chapman were present.  Councilor Lemhouse was absent.   

 

1.     Look Ahead Review

City Administrator Martha Bennett reviewed the items on the Council Look Ahead. 

 

2.     Discussion regarding revising the public contracting code and personal services code.

Assistant City Attorney Megan Thornton gave a presentation that included:

·Public Contracting Code

·Focus

·Definition of Public Contract

·Types of Contracts

o        Buying goods and services (Procurement)

o        Building stuff (Public Improvements/Works)

o        Buying special services (Personal Services)

·State Law Provide a framework for Procuring Goods and Services

o        Public Contracting Code

o        Attorney General Model Rules

·Basics of Public Contracting

·Authority to Adopt Public Contracting Code

·Default under State Law

·Assumption

·GOALS:  Simple, Efficient and Fair

 

Staff clarified the proposal would adopt rules that worked for the City and Council would determine limits.  The rules would be the same as State code with added safeguards for specific procedures.

 

·Staff Recommends

o        Adopt the Oregon public contracting code ORS 279A (General), 279B (Procurement) and 279C (Public Improvement)

o        Adopt the Attorney General model rules OAR 137-046 (General), 137-047 (Procurement) and 137-049 (Public Improvements)

·Do not adopt 137-048 (Architects, Engineers, Surveyors, etc.)

 

Staff explained the reason for not adopting 137-048 was the code treated Architects, Engineers and Surveyors differently.  The City would formally opt out of this procedure in the proposed ordinance.

 

·Procurement ORS 279B & OAR 137-47

o        General Rule:  Formal competitive sealed bids (ITB) or competitive sealed proposals (RFP) are required to procure goods and services, unless there is an exemption.

·Exemptions:  By adopting the ORS 279B and OAR 137-47, the City will adopt the model rules for all procurement methods, including the exemptions, such as small procurements.

·Does Council wish to use the small procurement exemption to the formal process to the extent authorized by law?

o        Small Procurement Exemption (informal process) generally allows a direct award of a contract up to $5,000.

o        Intermediate Procurement Exemption (informal process) requires three informally solicited competitive quotes and a written record and allowed for contracts $5,000 - $150,000.

o        Proposed Ordinance incorporates additional safeguards into the process in AMC 2.50.100.

 

Currently the City limit for purchasing Goods is $75,000 and $50,000 for Personal Services.  The State statute would increase both amounts to $150,000.  The minimum bid amount for competitive quotes is three but could be more. 

 

·Additional Safeguards for Exemptions AMC 2.50.100

o        Required written findings showing grounds for an exemption exists.

o        Sign off by Legal on Contract.

o        Sign off by Finance on Budgeted Funds.

o        Right of City Attorney, City Administrator or Local Contract Review Board (LCRB) to compel competitive bid or proposal process.

 

Council expressed concern raising reporting limits to $150,000 and briefly discussed lowering the current $75,000 reporting limitation.  Staff noted lowering the amount would affect a department’s ability for immediate purchase by adding an additional two weeks to incorporate a City Council meeting.  The vendor would not guarantee price quotes. 

 

·PP Public Improvements:  Building Public Infrastructure and Facilities.

o        By adopting ORS 279C and OAR 137-49, the City will adopt the model rules for all procurement methods, including the exemptions, such as small procurements and sole source procurements.

·Does Council wish to use the small procurement exemption to the formal process to the extent authorized by law?

o        Intermediate Procurement Exemption (informal process) requires three informally solicited competitive quotes and a written record and allowed for contracts $5,000-$100,000.

o        Proposed Ordinance incorporates additional safeguards into the process in AMC 2.50.100.

·Personal Services Contracts are services that are provided by a highly educated, or registered, or licensed professional.

o        Currently personal services are governed by AMC 2.52.

o        Proposal is to use the same rules for personal services used for other goods and services under ORS 279B and OAR 137-047, with a few exceptions.

o        Proposal is not to use OAR 137-048, which is the model rules for procuring architectural, engineering, and land surveying services.

·Personal Service Contracts:  Does Council wish to allow direct award of personal services contracts greater than $5,000?

o        Model Rules allow direct award of personal service contracts up to $50,000 (OAR 137-048-0200).

o        Proposed Ordinance incorporates additional safeguards into the process in AMC 2.50.100.

·Personal Service Contracts - Current Process $5,000 - $50,000.

o        2.52.070 A. – three competitive written proposals from prospective contractors.

·Personal Service Contracts - Current Process over $50,000.

o        2.52.070 C.

o        For personal service contracts that will cost $50,000 or more, the Department Head shall award the contract based on AMC 2.50.090 (Formal RFP Process).

·Example:  RFP – Engineering Services.

1.       Writing Scope of Work.

2.       Formal Advertising.

3.       One month to answer questions and give proposers time to prepare and submit proposals

4.       Pre-proposal Meetings.

5.       Bid Closing.

6.       3-6 Staff members and other agencies to review proposals – normally takes a couple of weeks.

7.       Additional time to allow for contesting award of bid.

·Personal Service Contracts – Benefits of the new process:

o        Projects begin sooner – it takes 2-5 months to prepare a project for award using the current formal bidding procedure.

o        Reduces costs: it takes approximately $7,000 in staff time and advertising to complete the bid process.  Based on an average of 10 projects a year, the expense of the RFP process amounts to $70,000 per year.

o        Conserves staff time.

 

Staff summarized the proposal for Personal Service contracts would allow a direct award up to $50,000 with three or more solicitations in writing for projects $50,000-$100,000 and a formal RFP process for projects over $100,000.  Council discussed changing the limitation to $75,000 instead of $100,000.

 

The proposed thresholds for Goods and Services and Public Improvements would allow a direct award up to $5,000, three or more bids for projects $5,000-$100,000 and a formal RFP for projects over $100,000.  Council thought the limitation should be $75,000 and discussed the possibility of requiring three or more bids for projects in the $5,000-$75,000 range with an RFP for projects over $75,000.

 

Staff will prepare options and ranges for Council to review at a future meeting.

 

Meeting adjourned at 7:05 p.m.

 

 

Respectfully submitted,                                   

Dana Smith

Assistant to the City Recorder

 

 

 

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