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The following solicitation methods and exempt classes of contracts are hereby established by the city council.

(1) Requests for Proposals for Public Improvement Contracts. The city may utilize a formal request for proposal (RFP) solicitation method for public improvement projects, in accordance with rules adopted by the purchasing agent for the use of RFPs and contracts awarded thereunder.

(2) City funded privately-constructed public improvements. The city may contribute funding to a privately constructed public improvement project (commonly known as a “PEPI”) without subjecting the project to competitive solicitation requirements if all of the following conditions are met with respect to the entire public improvement project:

(a) The city’s contribution to the project may not exceed 25% of the total cost of the project;

(b) The city must comply with all applicable laws concerning the reporting of the project to the Bureau of Labor and Industries as a public works project;

(c) The general contractor for the project must agree in writing to comply with all applicable laws concerning reporting and payment of prevailing wages for the project;

(d) The funds contributed to the project may not provide a pecuniary benefit to the owner of the development for which the project is being constructed, other than benefits that are shared by all members of the community;

(e) The performance of the general contractor and the payment of labor for the project must be secured by performance and payment bonds or other cash-equivalent security that is acceptable to the purchasing agent to protect the city against defective performance and claims for payment, unless the city’s obligation to make a payment is conditioned upon final completion of the public improvement and proof of, or security for payment that is acceptable to the purchasing agent; and,

(f) The contract for construction of the project must be amended, as necessary, to require the general contractor to maintain adequate workers compensation and liability insurance and to protect and provide indemnification to the city for all claims for payment, injury or property damage arising from or related to the construction of the project.

(3) Hybrid Contracts. The following classes of contracts include elements of construction of public improvements as well as personal services and may be awarded as described below and subject to rules adopted by the purchasing agent.

(a) Design/build contracts. Contracts for the construction of public improvements using a design/build construction method shall be awarded under a request for proposals. The determination to construct a project using a design/build construction method must be approved by the city manager or the city manager’s designee, upon application of the solicitation agent, in which the solicitation agent submits facts that support a finding that the construction of the improvement under the proposed method is likely to result in cost savings, higher quality, reduced errors, or other benefits to the city.

(b) Energy savings performance contracts. Unless the contract qualifies for award under another classification in this section 2.1430, contractors for energy savings performance contracts shall be selected under a request for proposals.

(c) Construction Manager/General Contractor (CM/GC) contracts. Contracts for the construction of public improvements using a Construction Manager/General Contractor Construction Method shall be awarded pursuant to ORS 279C.337 and Attorney General Model Rules adopted thereunder.

(4) Special Procurement Class Exemptions. Subject to regulation under rules adopted by the purchasing agent, the following classes of contracts may be awarded in any manner which the solicitation agent deems appropriate to the city’s needs, including by direct appointment or purchase.

(a) Advertising. Contracts for the placing of notice or advertisements in any medium.

(b) Amendments. Contract amendments shall not be considered to be separate contracts if made in accordance with rules adopted by the purchasing agent.

(c) Animals. Contracts for the purchase of animals.

(d) Copyrighted and library materials. Contracts for the acquisition of materials entitled to copyright, including, but not limited to, works of art and design, literature, music and library lending materials.

(e) Equipment repair. Contracts for equipment repair or overhauling, provided the service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing.

(f) Fuel and oil. Contracts for gasoline, diesel fuel, heating oil, lubricants and asphalt, subject to an intermediate procurement process.

(g) Goods for resale. Contracts for goods purchased for resale to consumers.

(h) Government regulated items. Contracts for the purchase of items for which prices or selection of suppliers are regulated by a governmental authority.

(i) Insurance. Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and 414.145, and liability insurance contracts.

(j) Manufacturer direct supplies. Contracts for goods purchased directly from the manufacturer, subject to rules adopted by the purchasing agent.

(k) Non-owned property. Contracts or arrangements for the sale or other disposal of used abandoned property or other personal property not owned by the city.

(l) Renewals. Contracts that are being renewed in accordance with their terms are not considered to be newly issued contracts and are not subject to competitive procurement procedures.

(m) Sole source contracts. Contracts for goods or services which are available from a single source may be awarded without competition. Pursuant to ORS 279B.075, the purchasing agent shall adopt rules under which a determination of sole source availability may be made.

(n) Sponsorship agreements. Sponsorship agreements, under which the city receives a gift or donation in exchange for recognition of the donor.

(o) Structures. Contracts for the disposal of structures located on city-owned property, other than structures suitable for residential use.

(p) Temporary extensions or renewals. Contracts for a single period of one year or less, for the temporary extension or renewal of an expiring and non-renewable, or recently expired, contract, other than a contract for public improvements.

(q) Temporary use of city-owned property. The city may negotiate and enter into a license, permit or other contract for the temporary use of city-owned property without using a competitive selection process if:

1. The contract results from an unsolicited proposal to the city based on the unique attributes of the property or the unique needs of the proposer;

2. The proposed use of the property is consistent with the city’s use of the property and the public interest; and

3. The city reserves the right to terminate the contract without penalty, in the event that the city determines that the contract is no longer consistent with the city’s present or planned use of the property or the public interest.

(r) Used property. A solicitation agent, for procurements up to $20,000, and the purchasing agent, for procurements in excess of $20,000 may contract for the purchase of used property by negotiation if such property is suitable for the city’s needs and can be purchased for a lower cost than substantially similar new property. For this purpose the cost of used property shall be based upon the life-cycle cost of the property over the period for which the property will be used by the city. A record shall be made of the findings that support any purchase over $10,000.

(s) Utilities. Contracts for the purchase of steam, power, heat, water, telecommunications services, and other utilities, including in-kind telecommunications services pursuant to EC 3.415(6).

(5) Contracts Required by Emergency Circumstances. The purchasing agent may declare that an emergency exists pursuant to ORS 279B.080. The purchasing agent shall notify the city council of the declaration of emergency for contract awards over the applicable intermediate procurement threshold.

(6) Surplus Property. The purchasing agent shall adopt rules for the disposal of all surplus property. The purchasing agent’s rules shall include rules under which nonprofit corporations may lease or purchase structures suitable for use as residential buildings that are declared surplus property and must be removed from city-owned property. The rules shall give preferences to nonprofit corporations who will use the structure to provide housing for persons of low income, or who are otherwise disadvantaged.

(7) Concession Agreements. The purchasing agent shall adopt rules for the award of concession agreements.

(Section 2.1430 added by Ordinance No. 20341, enacted and effective March 2, 2005; amended by Ordinance No. 20409, enacted May 27, 2008, effective June 30, 2008; and Ordinance No. 20542, enacted October 27, 2014, effective November 30, 2014.)