City Auditor - City Recorder - City Code - Title 05 - Revenue & Finance (December 2005 version)

In addition to funds created in accordance with the provisions of the Charter, there shall be the funds set forth in this Chapter and such other funds as from time to time may be provided for by ordinance.

(Amended by Ordinance No. 173369, effective May 12, 1999.) The Sundry Trusts Fund, created by Ordinance No. 118746, passed by the Council July 1, 1964, shall contain accounts for trust monies which neither belong in the Trustees’ Fund nor require an individual trust fund. The following accounts are authorized for the Sundry Trusts Fund:

A. Animals for zoo account. (Repealed by Ordinance No. 150375; passed and effective Sept. 11, 1980.)

B. Civic Emergency Account. This account shall receive the City’s share of the annual allocation from the Civic Emergency Fund under ORS 463.170. Expenditures shall be limited to athletic, recreational, educational, or charitable purposes. The Mayor and the Auditor are authorized to draw on this account when requisitions are presented approved by the Mayor, and one other Commissioner;

C. Elephant Purchase Account. (Repealed by Ordinance No. 150375; passed and effective Sept. 11, 1980.)

D. Health Protection Account. (Repealed by Ordinance No. 150375; passed and effective Sept. 11, 1980.)

E. Recreation Account. (Repealed by Ordinance No. 150375; passed and effective Sept. 11, 1980.)

F. Rose Test Garden Account. This account shall be administered in accordance with Ordinance No. 110776; passed by the Council September 23, 1959. The Mayor and the Auditor are authorized to draw checks on this account when requisitions are presented approved by the Commissioner In Charge of the Bureau of Parks;

G. Oaks Pioneer Park Museum Account. This account shall be administered in accordance as hereinafter provided:

All monies received from charges arising out of the operation of Oaks Pioneer Park Museum, under contract or otherwise, shall be deposited with the Treasurer of the City. The Treasurer shall hold all such funds so received in the Oaks Pioneer Park Museum Account. Disbursements shall be made in accordance with budgetary procedures upon requisition approved by the Commissioner In Charge of the Bureau of Parks and shall be limited to maintenance, operational costs, and improvement of the Oaks Pioneer Park Museum. The Mayor and Auditor are authorized to draw warrants on this account when requisitions are presented and approved by the Commissioner In Charge of the Bureau of Parks.

H. Drake Property Account. Until such time as the Council may determine, this account shall receive all rentals and related revenues derived from the property on the east side of the Willamette River and north of the Sellwood Bridge known as the Drake Property which was purchased by the City under Ordinance No. 128587, passed February 20, 1969, for the Willamette Parkway System. Expenditures from this account other than those required in connection with rentals derived from the property, shall be limited to the improvement and expansion of the property. This account shall be administered by the Commissioner In Charge of the Bureau of Parks.

I. Portland Shipbuilding Property Account. Until such time as the Council may determine, this account shall receive all rentals and related revenues derived from the property on the west side of the Willamette River at the foot of S.W. Nebraska Street known as the Portland Shipbuilding Property, which was purchased by the City under Ordinance No. 128623; passed February 26, 1969. Expenditures from this account other than those required in connection with rentals derived from the property, shall be limited to the improvement and expansion of the property. This account shall be administered by the Commissioner In Charge of the Bureau of Parks.

J. Officer Friendly Account. (Repealed by Ordinance No. 135666; passed and effective December 6, 1972.)

K. Willamette Oaks Park Account. Until such time as the Council may determine, this account shall receive all rentals and related revenues derived from the property in Willamette Oaks Park purchased by the City from Leonard and Ruth Steele under authority of Ordinance NO. 130097; passed November 19, 1969, for the Willamette Parkway System (Lots 1,2 and 42 Willamette Oaks Park Addition). Expenditures from this account other than those required in connection with rentals derived from the property, shall be limited to the improvement and expansion of the property. This account shall be administered by the Commissioner In Charge of the Bureau of Parks.

L. Portland Zoo Hospitalization and Research Account. (Repealed by Ordinance No. 150375; passed and effective Sept. 11, 1980.)

There is hereby created a Trustees’ Fund which shall be credited with all cash and securities deposited with the City Treasurer to protect the City against loss on account of certain obligations, and with all money and/or securities deposited with the City Treasurer pending information or accrual of time for its application. The City Treasurer shall receive into such fund installment payments on municipal assessments against real property, including payments which are too small to be entered on the Lien Docket as a credit, it being provided that a payment shall be too small for such entry when it is less than one-third of the total amount to be paid as shown on the open lien docket. When such deposits in the Trustees’ Fund make an amount sufficient for entry the Treasurer shall make application thereof as a payment on such assessment, make a proper entry thereof in his books, and the Auditor shall make a proper entry thereof in his books. The amounts deposited in the Trustees’ Fund shall be applied as provided in the receipt showing the terms of deposit. The City Treasurer shall upon receiving a deposit under the provisions of this Section issue a receipt therefor, a copy of which shall be filed with the City Auditor and be credited to the Trustees’ Fund. No cash or collateral securities shall be returned by the City Treasurer without written approval of the City Auditor. The City Treasurer upon returning cash or collateral securities shall take a receipt from the depositor in duplicate, the original of which shall be filed with the City Auditor, who is hereby authorized to credit the City Treasurer with the amount of the receipt. In cases where deposits are made by persons interested in local improvements no refund shall be made unless the contemplated improvement is not made or the owner of the property for account of which the deposit was made promptly pays or bonds the assessment. If the improvement is made and the owner fails to pay and/or bond the assessment within twenty (20) days after its entry in the open lien docket the deposit shall be applied to a payment pro tanto of the assessment and the Treasurer and Auditor shall make proper book entries thereof.

The Parking Meter Fund is hereby created and the Treasurer of the City is hereby directed to deposit to the credit of the fund all fees or money received on account of collections from present or future installations of parking meters. All disbursements from such fund shall be in conformance to regular budget procedure.

Whenever the City Treasurer shall deem it advisable to dispose of slugs and tokens received in collections from the City’s parking meters and which are not lawful monies of the United States, he shall sell, cash, redeem or destroy the slugs and tokens and shall deposit all sums so realized to the credit of the Parking Meter Fund.

A fund to be known and designated as the Golf Fund is hereby created. All revenues derived from the operation of the municipal golf links shall be credited to the Golf Fund, and all disbursements from the fund shall be in conformance with regular budget procedure.

The Bonded Debt Interest and Sinking Fund is hereby created to which shall be credited the proceeds from the tax levy of the City for interest on bonded indebtedness of the City and the tax levy to provide for the purchase of securities as an investment and/or payment of redemptions of the bonded indebtedness of the City together with such other receipts as may be realized in connection with the administration of the bonded debt of the City but not limited to interest on investments. Expenditures from the fund shall be for the payment of the principal and interest on bonded debt of the City to be paid from ad valorem taxes and for any other expenditures authorized to be paid from tax levies for general obligation bonds of the City.

The Parking Facilities Fund is hereby created into which shall be deposited all fees, rentals and charges received by the City from the operation of the off-street parking facility at S.W. 2nd Avenue and Jefferson Street and from which expenses of operation and maintenance of the facility shall be paid all in accordance with Ordinance No. 128235, passed December 18, 1968.

The Parking Facilities Bond Redemption Fund is hereby created into which shall be paid the accrued interest from the sale of the bonds, plus an amount capitalized from bond principal which will in the aggregate together with interest to be received from investments provide for the interest payments on the revenue bonds due August 1, 1969, February and August 1, 1970, and February 1, 1971, the net revenues of the Parking Facilities Fund and amounts from net parking meter revenues required for the reserve amount, if any; and from which shall be paid the principal of and the interest on the outstanding revenue bonds, and the principle, interest and premium, if any, on any revenue bonds issued on a parity therewith, all in accordance with Ordinance No. 128235, passed December 18, 1968.

(Repealed by Ordinance No. 160515 effective Mar. 28, 1988.) See Sections 5.04.400 - 460.

(Added by Ordinance No. 135516; passed and effective Nov. 2, 1972.) The Revenue Sharing Fund is hereby created for the receipt and expenditure of monies received from the federal government under the State and Local Fiscal Assistance Act of 1972. Into this Fund shall be deposited all payments received from the federal government under the Act, interest earned thereon while in this Fund and any other monies which are appropriate revenues of this Fund. The monies shall be expended only for purposes authorized under the Act.

(Added by Ordinance No. 145065; passed and effective Jan. 19, 1978.) The State Revenue Sharing Fund is hereby created for the receipt and expenditure of monies received from the State of Oregon under Senate Bill 11 (Engrossed) effective July 27, 1977. All payments received from the State of Oregon under this Act, interest earned thereon while in this Fund and any other monies which are appropriate revenues of this Fund shall be deposited to this Fund. The monies shall be expended only for purposes authorized under this Act.

(Added by Ordinance No. 161018, amended by Ordinance Nos. 163837, 176003 and 178797, effective October 6, 2004.)

A. The CityFleet Operating Fund is hereby created as a working capital fund within the Bureau of General Services, described in Section 3.15.080 of this Code. The major operating funds for this Fund shall be generated by Interagency Agreements with the City bureaus and others using the services of the Bureau of General Services. Other receipts of the Fund shall include service charges to users, interest earned by the Fund and any other monies which are appropriate revenues. Expenditures from the Fund shall be in accordance with appropriations made by the Council.

B. Short-term loans from the General Fund to the CityFleet Operating Fund, which are to be repaid in the same fiscal year in which the loan is made, are hereby authorized without interest to provide temporary working capital, as needed, provided that each loan is first approved in writing by the Commissioner of Finance and Administration.

(Added by Ordinance No. 163837; amended by Ordinance No. 176003, effective October 10, 2001.)

A. The Facilities Services Operating Fund is hereby created (by Ordinance 163156, June 27, 1990) as a working capital fund within the Bureau of General Services, described in Section 3.15.080 of this Code. The major operating funds for this Fund shall be generated by Interagency Agreements with the City bureaus and others using the services of the Bureau of General Services. Receipts of the Fund shall include proceeds of these Interagency Agreements, service charges to users, interest earned by the Fund, and any other monies which are appropriate revenues. Fees shall be collected and deposited into this Fund for all property management related services involving leases, and for the purchase and sale of City owned real property. Expenditures from the Fund shall be in accordance with appropriations made by the Council.

B. The costs of repair, maintenance, taxes or any other expense incurred by the Bureau of General Services in providing any property management services, shall be the responsibility of the bureau or agency using or responsible for the property. All net revenues (defined as revenue, less all appropriate expenses) from rents, leases or sales shall accrue to the bureau or agency using or responsible for the property.

C. Any property that is not specifically used or the responsibility of any bureau or agency is defined as “unassigned property,” and shall be the responsibility of the General Services Bureau, Administrative Services Division (General Fund). Net revenue for these properties shall be considered total revenue from the rent and sale of all these properties, less total expenses for all these properties. Any net revenue from these properties, shall be transferred to the General Fund at the end of each fiscal year.

D. Any property acquired by the City from any source shall be inventoried with the Bureau of General Services.

E. Short-term loans from the General Fund to the Facilities Services Operating Fund, which are to be repaid in the same fiscal year in which the loan is made, are hereby authorized to provide temporary working capital, as needed, provided that each loan is first approved in writing by the Commissioner of Finance and Administration.

(Added by Ordinance No. 161018; amended by Ordinance Nos. 163837, 176003 and 177852, effective September 3, 2003.)

A. The Communications Service Operating Fund is hereby created as a working capital fund within the Bureau of Technology Services, described in Section 3.15.060 of this Code. The major operating funds for this Fund shall be generated by Interagency Agreements with the City bureaus, and others, using the services of the Bureau of Technology Services. Other receipts of the Fund shall include service charges to users, interest earned by the Fund and any other monies which are appropriate revenues. Expenditures from the Fund shall be in accordance with appropriations made by the Council.

B. Short-term loans from the General Fund to the Communications Services Operating Fund, which are to be repaid in the same fiscal year in which the loan is made, are hereby authorized to provide temporary working capital, as needed, provided that each loan is first approved in writing by the Commissioner of Finance and Administration.

(Added by Ordinance No. 161018; amended by Ordinance Nos. 163837 and 176003, effective October 10, 2001.)

A. The Printing and Distribution Services Operating Fund is hereby created as a working capital fund within the Bureau of General Services, described in Section 3.15.080 of this Code. The major operating funds for this Fund shall be generated by Interagency Agreements with the City bureaus, and others, using the services of the Bureau of General Services. Other receipts of the Fund shall include service charges to users, interest earned by the Fund and any other monies which are appropriate revenues. Expenditures from the Fund shall be made in accordance with appropriations made by the Council.

B. Short-term loans from the General Fund to the Printing and Distribution Services Operating Fund, which are to be repaid in the same fiscal year in which the loan is made, are hereby authorized to provide temporary working capital, as needed, provided that each loan is first approved in writing by the Commissioner of Finance and Administration.

(Added by Ordinance No. 139574; passed and effective March 13, 1975.) The Improvement Warrant Sinking Fund is hereby created. Funds obtained from the issuance of general obligation improvement warrants issued pursuant to statute and authorized by the Council shall be placed in this Fund and expended only for payments duly authorized for the construction of public improvements. All proceeds from the collection of unbonded assessments, the sale of improvement bonds, and the foreclosure of improvement liens for unbonded assessments, realized from the improvement with respect to which such general obligation improvement warrants are issued, shall be placed in the fund to be applied to the call and payment of such warrants as rapidly as funds are available as provided by statute.

(Added by Ordinance No. 140900; passed and effective Nov. 20, 1975.) The Economic Development Trust Fund is hereby established for receipt and accountability for the assets of the Trust for economic development in the model cities neighborhood established by the agreement between the City and MEDIA authorized by Ordinance No. 132652, passed May 6, 1971. The City succeeded the Metropolitan Economic Development Industrial Alliance as trustee, and this Fund shall be administered by the City in accordance with the terms of the trust, set forth in the agreement and by Resolution No. 31575, adopted May 28, 1975.

This Fund shall receive the assets turned over to the City by MEDIA and shall also receive principal and interest on loans receivable, interest on invested capital, proceeds from sale of investments and any other income of the Trust. Expenditures shall be in accordance with appropriations made by the Council for purposes of the Trust.

(Added by Ordinance No. 142290; amended by Ordinance Nos. 150375 and 176003, effective October 10, 2001.)

A. The Insurance and Claims Operating Fund is hereby created as a working capital fund under the Bureau of General Services, described in Section 3.15.080 of this Code. Receipts of the Fund shall include service charges to user funds for administrative and legal expenses, insurance premiums and loss reserves, interest earned by the Fund and any other monies which are appropriate revenues. Expenditures from the Fund shall be in accordance with the appropriations made by the Council.

B. Expenditures and encumbrances shall be limited to the balance in the Fund at the time and to purposes for which there is an appropriation or other source of reimbursement authorized at the time.

(Added by Ordinance No. 144762; amended by Ordinance Nos. 150375 and 176003, effective October 10, 2001.) The Workers’ Compensation Self Insurance Operating Fund is hereby created as a working capital fund under the Bureau of General Services, described in Section 3.15.080 of this Code. Receipts of the Fund shall include service charges to user funds for administrative and legal expenses, insurance premiums, expected and unanticipated loss reserves, interest earned by the Fund and any other monies which are appropriate revenues. Expenditures from the Fund shall be made in accordance with appropriations made by the Council. Expenditures and encumbrances shall be limited to the balance in the Fund at the time and to purposes for which there is an appropriation or other source of reimbursement authorized at the time.

(Added by Ordinance No. 147298; passed and effective Feb. 28, 1979.) The System Development Charge Sinking Fund is hereby created. Funds obtained from the issuance of General Obligation Bancroft Bonds issued pursuant to statute and authorized by the City Council for this purpose shall be placed in this Fund and expended only for payments duly authorized for construction or expansion of systems development. All proceeds from the collection of Bonded Assessments, realized from System Development Charge Assessments with respect to such General Obligation Bancroft Bonds are issued, shall be placed in the fund to be applied to the call and payment of General Obligation Bancroft Bonds pursuant to the call schedule set forth in the offer and as provided by statute.

(Added by Ordinance No. 148968; passed Dec. 26, 1979, effective Jan. 26, 1980.) The Washington County Water Supply Construction Fund is hereby created. Contributions from other water purveyors and the City of Portland and receipts obtained from the issuance of general obligation bonds, payable from water revenues, issued for the purpose of constructing a water supply line to Washington County shall be placed in this fund and expended only for duly authorized payments for the oversizing of the southeast Water Supply Line and the Washington County Water Supply Line. Upon completion of the supply line to Washington County and after all liabilities for the construction thereof have been satisfied, any balance remaining in this Fund shall be transferred to the Washington County Water Supply Bonded Debt Service Sinking Fund and this Fund shall be discontinued.

(Added by Ordinance No. 148986; passed Dec. 26, 1979, effective Jan. 26, 1980.) The Washington County Water Supply Bonded Debt Service Sinking Fund is hereby created. Water revenues in the form of contributions from other water purveyors and the City of Portland shall be placed in this Fund and expended only for duly authorized payments of principal and interest for bonds issued for the purpose of constructing a water supply line to Washington County. Upon payment of all principal and interest of said bond issue, any balance remaining in this Fund shall be returned, on a prorated basis, to the contributors and this Fund shall be discontinued.

(Added by Ordinance No. 153288; May 26, 1982.) The Water Growth Impact Charge Trust Fund is hereby created. Revenues received by the City for growth impact charges from other water purveyors shall be placed in this Fund and expended only for duly

authorized payments for expansion of the total water system capacity. Should this Fund become unnecessary, due to changes in the water sales contracts with other water purveyors, any remaining funds at that time shall be paid to the Water Fund.

(Added by Ordinance No. 156178; effective July 21, 1984.) The Bull Run Fund is hereby created. Receipts received by the City resulting from the sale of items promoting the City water system, such as, but not limited to, bottled water, posters and books, shall be placed in this Fund and expended only for duly authorized payments to directly promote or advertise the City water system to attract development within the City. Should this Fund become unnecessary for any reason, any remaining money remaining in this Fund at the time it is discontinued shall be paid to the Water Fund.

(Added by Ordinance No. 160973 effective July 23, 1988.) The St. Johns Landfill End Use Plan Fund is hereby created. Revenues received by the City from the Metropolitan Service District which are designated for implementation of the St. Johns Landfill End Use Plan per Section 9 of the City-Metro Agreement adopted by Ordinance No. 158522 and other contributions and revenues designated for implementation of the End Use Plan shall be placed in this Fund. Monies from this Fund, including interest earned by the Fund, shall be expended only for duly authorized payments to cover the costs of implementing the St. Johns Landfill End Use Plan. Should this Fund become unnecessary any monies remaining in this Fund shall be paid to the Refuse Disposal Fund.

(Added by Ordinance No. 166407, Apr. 7, 1993.) The Sewer Revolving Loan Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt of monies derived from transfers made to the Fund from the Sewer System Operating Fund, and monies derived from the re-payment of loans made to properties participating in the Private Plumbing Revolving Loan Program. Monies from this Fund, including interest earned by the Fund, shall be used for making loans to certain owners of single-family residential property located in the Mid-Multnomah County Sewer System Project, and shall be expended only for duly authorized payments to cover the costs of implementing the Private Plumbing Revolving Loan Program. Money in the Sewer Revolving Loan Fund may be commingled with other City money for investment purposes. Should this Fund become unnecessary any monies remaining in this Fund shall be paid to the Sewer System Construction Fund.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The Sewer System Operating Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt and expenditure of monies associated with operation and maintenance of the sewer system, including sanitary and drainage services. Monies in the Sewer System Operating Fund may be transferred to the Sewer System Debt Redemption Fund, the Sewer System Construction Fund, or the Sewer System Rate Stabilization Fund. Money in the Sewer System Operating fund may be commingled with other City money for investment purposes.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The Sewer System Construction Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt and expenditure of monies associated with construction of sewerage facilities, including sanitary and drainage facilities. Money in the Sewer System Construction Fund may be commingled with other City money for investment purposes.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The Sewer System Debt Redemption Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt and expenditure of monies associated with the retirement of debt incurred by the sewer system. Money in the Sewer System Debt Redemption Fund may be commingled with other City money for investment purposes.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The Sewer System Debt Proceeds Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt of monies derived from the issuance of Sewer System debt. Monies in the Sewer System Debt Proceeds Fund shall be transferred to the Sewer System Construction Fund for expenditure and to the Sewer System Operating Fund for reimbursement of costs associated with the issuance of debt and to the Sewer System Debt Redemption Fund for the retirement of debt. Money in the Sewer System Debt Proceeds Fund may be commingled with other City money for investment purposes.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The Sewer System Rate Stabilization Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt of monies transferred from the Sewer System Operating Fund. Monies in the Sewer System Rate Stabilization Fund shall be transferred to the Sewer System Operating Fund for expenditure. Money in the Sewer System Rate Stabilization Fund may be commingled with other City money for investment purposes.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The Sewer System Safety Net Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt of monies derived from loans made to the Fund from the State Assessment Deferral Revolving Loan Fund, and monies derived from the payment of deferred assessments by properties participating in the Sewer Safety Net Program. Monies in the Sewer System Safety Net Fund shall be paid to the Local Improvement District Construction Fund for payment of sewer assessments for properties participating in the Sewer Safety Net Program, and shall be used to retire loans received from the State Assessment Deferral Revolving Loan Fund.

(Added by Ordinance No. 160515 effective Mar. 28, 1988.) The funds described in Portland City Code Sections 5.04.400 through 5.04.450 shall in the aggregate constitute the Sewage Disposal Fund, and shall be used for only those Sewage Disposal Fund purposes authorized by the Charter of the City of Portland, Oregon. If any of the funds associated with operation, maintenance, construction or debt management of the Sewer System become unnecessary or for any reason are dissolved and discontinued, then any remaining balances in that fund or funds shall be transferred to the Sewer System Operating Fund. If the Sewer System Operating Fund is dissolved and discontinued, then any remaining balances in that fund shall be transferred to the City’s General Fund. However, in no case shall any funds be transferred to the City’s General Fund until all outstanding debt of the sewer system is repaid according to terms and conditions of related bond and note ordinances.

(Added by Ordinance No. 168683, Apr. 12, 1995.) The Portland Police Fitness Room Trust Account is hereby created. Into this fund shall be deposited monies received from fitness room membership dues (through payroll deduction), the City of Portland and other contributors. Disbursements shall be made upon a requisition request from a Police Bureau’s Fitness Room Committee with signature approval by either the Chief of Police or an Assistant Chief. Monies from this fund by either the Chief of Police or an Assistant Chief. Monies from this fund shall be used for maintenance and repairs of equipment, equipment replacement, and new fitness room equipment.

(Added by Ordinance No. 170223, July 1, 1996.) The Property Management License Fund is hereby made a part of the Code of the City of Portland, Oregon, for the receipt of any revenues derived from assessments levied under the former downtown Economic Improvement District created by Ordinance No. 164665, together with all revenues generated by the Downtown Property Management License program (City Code Chapter 6.06.) Monies derived from proceeds of the Downtown Property Management License program and delinquent Economic Improvement District assessments, as well as from interest earned on that money, shall be spent only for the services described in Section 6.06.010 of the Code of the City of Portland and for any costs of the City’s administration of the Downtown Property Management License program.

(Added by Ordinance No. 172612, amended by Ordinance No. 172810, effective November 4, 1998.) There is hereby created a City of Portland graffiti nuisance abatement trust fund. Any donations in support of graffiti abatement will be placed into the fund, together with any monies received in connection with voluntary nuisance abatement consent forms. Expenditures from this fund may occur upon the approval of any two of the following: (1) the Mayor; (2) the Commissioner-in-Charge of the Office of Neighborhood Involvement; and (3) the Graffiti Abatement Manager. Such expenditures shall be limited to: the payment of the cost of removal of graffiti; the purchase, acquisition, operation and maintenance of graffiti removal equipment and supplies; the costs of administering the graffiti nuisance abatement ordinance; and such other public purposes as may be approved by the City Council.

(Added by Ordinance No. 176003; amended by 177852, effective September 3, 2003.) The Information Technology Services Fund is hereby created as a working capital fund (by Ordinance 164360, June 26, 1991) under the Bureau of Technology Services as described in Section 3.15.060 of this Code. The purpose of this Fund is to receive and record expenditures related to the management, operation and delivery of a variety of information technology services to City bureaus and offices. The Fund also supports facilitation of multi-year funding of major information technology initiatives. The Fund is supported primarily by charges to City bureaus for corporate and bureau-specific services.

5.08.105 Reimbursement to Employees in Educational Programs Authorized by Council.

All officers and employees of the City shall be paid for time earned and allowed under provisions of this Code. Such payments shall be biweekly. A pay period shall hereafter comprise 14 calendar days. Thursday, October 1, 1953, will be the first day and Wednesday, October 14, 1953, will be the last day of the first pay period; thereafter, each pay period will commence on Thursday and extend through the Wednesday of the second week.

(Amended by Ordinance No. 136888, and 147197; passed Feb. 7, effective March 10, 1979.)

A. It shall be the duty of the head of each appropriation unit to cause to be prepared, to approve, and to certify biweekly time reports for employees whose time deviates from standard biweekly hours and standard cost centers or when an employee is not to be paid, and cause the same to be transmitted to Central Payroll.

Biweekly time reports are not necessary for employees who worked their standard hours and whose time gets charged to the standard cost center. A payroll warrant will be automatically written for active employees whose standard time gets charged to their standard cost centers. However, each bureau manager shall submit a certification to the Accounting Division to the effect that all employees who will be paid and for whom no time report is submitted, did in fact, render the services to be paid.

B. Such biweekly time reports shall contain a statement of each applicable employee of the hours on duty, including overtime which has been approved by the Commissioner In Charge, or the Auditor as to his department; and the hours of duty, including vacation, holidays, sick leave, compensatory time off; and other leaves of absence with pay. A notation shall also be made of the number of days absent because of injury in the line of duty. A notation shall also be made of sick leave used or disability or pension benefits paid as a result of an injury by a third party.

C. In addition to the above, the biweekly time reports covering a member of the Bureau of Fire assigned to a 56-hour week shall carry a notation as to the number of regular duty hours worked in excess of the average of 112 hours biweekly. Such excess hours shall be accumulated and credited to those normal work periods that do not provide for an average biweekly accumulation of 112 hours.

D. The biweekly time reports shall be transmitted to the Auditor not later than the Friday following each pay period; provided, if the Thursday or Friday is a holiday, an additional day shall be allowed.

E. (Added by Ordinance No. 132896; passed June 24, effective July 26, 1971.) In the event of error or omission requiring payroll adjustment as a result of any provision of a labor agreement such as failure to notify an employee of a change of shift schedule, assignment to duty of an employee not entitled to such assignment under contractual requirements, or other error or omission which can appropriately be adjusted by an adjustment on the biweekly time report, the biweekly time report shall carry a notation concerning the error or omission which is the basis of such adjustment.

The daily rate for all employees except those of the Bureau of Fire assigned to a 56-hour week shall be determined by dividing the biweekly rate by the number 10 and the hourly rate by dividing such daily rate by 8. The daily rate for the employees of the Bureau of Fire assigned to a 56-hour week shall be determined by dividing the biweekly rate by the number 14 and the hourly rate shall be determined by dividing such daily rate by 8.

(Amended by Ordinance Nos. 136887, 160146 and 173369 effective May 12, 1999.) When the biweekly time report shall have been approved by the head of the appropriation unit as being correct and by the Personnel Director that the employees were employed according to law, then the Auditor shall prepare the payroll records and draw and deliver checks not later than the second Friday following the end of each pay period or at such time as required by applicable federal or state law in accordance with Chapter 5.08.120 of the City Code in payment of salaries of officers and employees for payroll so certified; provided, that where such Friday is a holiday, checks shall be delivered the day previous.

Safety glasses shall be worn by employees working in an area where a continuous eye hazard exists, subject to the conditions set forth in this Section.

A. The Employee Relations Office shall investigate units in which there may be continuous eye hazards and shall report the findings, and make recommendations to the Commissioner of Finance. The Commissioner of Finance, subject to the approval of the Commissioner In Charge of the unit concerned shall authorize a safety glasses program for a unit or for employees within a unit who may perform duty which is a continuous hazard to the eyes;

B. Safety glasses with safety frames and uncorrected lenses (planos) will be supplied by the City without cost to the employee. Employees who need corrective lenses will obtain the prescription for their lenses at their own expense from a doctor of their own choosing. In addition, such employees will also bear the cost of the ground lenses and frames. However, if corrective lenses and frames are obtained through the City, the City will allow as a credit the amount which the City pays for planos with standard safety frames;

C. Payment for corrective lenses and frames will be made to the supplier by the City, which in turn will collect such cost from the employee, less the allowance for planos with standard frames. Such collections shall be turned over to the City Treasurer to be credited to the appropriate revenue account;

D. The expenditure of City funds for safety glasses shall be limited to those units where a continuous eye hazard exists;

E. Corrective glasses will be property of the employee. Planos will be the property of the City. Replacement of broken glasses will be made on the same basis as the originals were obtained;

F. Once issued, safety glasses are to be worn at all times while in the hazardous work area as a condition of employment.

(Amended by Ordinance No. 131329, and 141241; passed and effective Jan. 29, 1976.) Each employee of the Bureau of Police or the Bureau of Fire who is to receive an annual clothing allowance as provided in Section 3.20.170 or Section 3.22.100 shall be paid such clothing allowance as follows:

A. The clothing allowance shall be at the rates specified in the current contracts with the Portland Fire Fighters Association Local 43 IAFF and the Portland Police Association.

B. The clothing allowance shall be payable on or after July 1 of each year from funds budgeted for this purpose. Eligibility for such payment and the amount of the payment for each eligible employee shall be dependent on the assignment of the employee and the duration of such assignment during the previous fiscal year.

C. An employee who has served for less than a full year in a position for which a clothing allowance is authorized shall receive an allowance prorated for the number of full calendar months served. For the purpose of this Section, time served shall not include leave without pay, nor time on sick leave and/or disability benefits in excess of a total of 30 days during the fiscal year.

D. An eligible employee who separates from the City service shall receive a prorated allowance at the time of separation. The rate of such payment shall be the same as that paid during the fiscal year of separation.

“Year” means the fiscal year, from July 1 to June 30 inclusive, as established by ORS 294.095 and 293.605, unless otherwise expressly indicated in this Code.

5.08.105 Reimbursement to employees in Educational Programs Authorized by the Council.

(Added by Ordinance No. 133632; passed and effective Nov. 10, 1971.) Whenever the Council has authorized an off-duty educational program for employees on an individual basis to improve professional skills and has provided for reimbursing the employee for specific expenditures upon his successful completion of a course in accordance with the requirements for the program, reimbursement will be made upon requisition to the City Auditor approved by the City Personnel Officer. For employees on a General Fund payroll, the reimbursement shall be charged to the General Fund. Reimbursement for an employee on a special fund payroll shall be charged to that special fund.

Meter readers of the Bureau of Water Works shall be paid additional compensation over and above their salary as an allowance for bus fare while traveling in the line of duty is such bus fare has not been paid directly by the Bureau of Water Works. The additional compensation to be paid each meter reader shall be at the rate of $17.50 per month, which shall be prorated for any part of a month in which the employee has not been required to pay his own bus fare.

Whenever it becomes necessary to pay for labor or overtime at other than the specified times indicated by this Chapter, time reports shall be certified as soon as may be required and transmitted to the Auditor for payment.

(Amended by Ordinance No. 173369, effective May 12, 1999.) When the payroll of any bureau or department is made up of persons whose salaries are chargeable to more than one fund, such salaries may be paid by checks drawn on one such fund in the manner provided for regular payrolls provided that in such cases the bureau or department head shall draw an interdepartmental bill at the end of each month, charging the appropriation of the proper fund and crediting the revenue of the fund from which payment was made.

(Replaced by Ordinance No. 172205; amended by 172562, 173326, 176426, 177833, 179023 and 179643, effective November 4, 2005.)

A. Salary and wage deductions, other than Public Employees Retirement System, Worker’s Compensation Self-Insurance and assignments or garnishments prescribed by law or authorized by an employee, shall be made on the biweekly payrolls. Only the employee may authorize voluntary deductions or changes in exemptions for tax withholding purposes. Each authorization bearing the signature of the employee shall be kept on file by the Office of Finance and Administration.

27. City Treasurer Trustee Fund for Benefit of Portland Police Contributions Committee-Police Special Contributions

B. Each entity or agency authorized by Subsection A. to receive money through the use of the payroll deduction system, except those agencies or entities referred to in Subsection C., shall pay to the City a fee of 50 cents for each payroll deduction that is made from an employee’s paycheck.

C. The entities or agencies whose names are preceded by the numbers described herein shall not be required to pay the fee described in Subsection B: 1., 2., 3., 4., 5., 6., 10., 11., 12., 13., 14., 15., 16., 17., 18., 19., 20., 21., 22., 23., 24., 25., 26., 31., 32., 35. and 36.

Whenever salaries chargeable to the State Tax Street Fund are paid on payrolls charged to the General Fund, the Commissioner of Public Works may at the beginning of each month, estimate the amount of service to be charged during the ensuing month and transfer such amount from the State Tax Street Fund to the General Fund by departmental bill. At the end of each month, when the exact amount chargeable to the State Tax Street Fund is determined the amount transferred must be correct by departmental bill.

(Amended by Ordinance Nos. 133986 and 173369, effective May 12, 1999.) Delivery of checks payable to any person employed by the City, or payable to any person receiving disability or retirement benefits from the City, shall be made in the following manner upon the death of such person:

A. Where the person’s estate is admitted to probate in any county in Oregon, delivery shall be made to the representative thereof after the Auditor has been furnished a certified copy of letters testamentary or letters of administration;

B. Where the person’s estate is admitted to probate outside this state, delivery shall be made as provided in Subdivision A of this Section, except that the Auditor shall first notify the Department of Revenue of the total amount to be paid. Delivery of checks shall not be made less than 30 days after notice to the department of revenue and 90 days after death;

C. Where the person’s estate is not probated, and the heir or next of kin making claim for checks is a resident of Oregon, delivery shall be made to that heir or next of kin after that individual has furnished the Auditor a hold harmless agreement as provided in Section 5.08.170;

D. Where the person’s estate is not probated, and the heir or next of kin making claim for checks is not a resident of Oregon, delivery shall be made to that heir or next of kin after that individual has furnished the Auditor a hold harmless agreement as provided in Section 5.08.170 and if the amounts total more than $200 a bond, underwritten by a surety authorized to do business in this State, to defend and indemnify the City, its officers, agents and employees against any claim, suit, action or judgment arising out of the delivery or payment of the checks;

E. Checks payable to deceased employees, or to persons entitled to disability or retirement benefits prior to their death, shall be drawn in the usual course of business only, and shall be delivered by the Auditor as provided by this Section, without further action of Council;

F. The Auditor shall attach to each check issued under this Section an authorization for transfer in the following form:

That . . . . . . (name of applicant) has applied for transfer of Check No. . . . . . . dated . . . . . . 19 . . ., payable to . . . . . (name of payee), deceased, as . . . . . . . . . (Heir, next of kin, executor or administrator of the estate), that pursuant to Title 5 of the Code of the City of Portland, as amended, I am authorized to deliver said check to . . . . . . . . . . . . (name of applicant) and the Treasurer of the City of Portland is directed to cash the same upon.. . . . . . . . . . . . . . . . endorsement thereof.

The Auditor shall furnish the Treasurer a copy of all authorizations for transfer he issues, and the Treasurer shall honor all checks described in the authorizations for transfer when endorsed by the applicant named therein.

(Amended by Ordinance No. 173369, effective May 12, 1999.) Hold harmless agreements required by subdivisions C and D of Section 5.08.160 shall be in the following form:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .who died . . . . . . . . . . . . . .. . . . , 19 . . . . , the sum of $ . . . . . . . . . . . . . .representing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and the Auditor of the City of Portland holds said sum in the form of checks drawn payable to the said deceased; and

WHEREAS there will be no probate of the decedent’s estate and I, as . . . . . . . . . . . . . . . . . . . . . . . (heir, next of kin) of the deceased, have applied to the Auditor of the City of Portland for delivery of these checks according to the provisions of Title 5 of the Portland Municipal Code, as amended, whereby the Auditor may deliver these checks to me, as . . . . . . . . . . . . . . . . . . . . . , (heir, next of kin) only upon condition that I first release and discharge the City of Portland, its officers, agents and employees from all liability with respect to delivery of these checks and payment thereof, and agree to defend and indemnify the City of Portland, its officers, agents and employees therefrom;

NOW, THEREFORE, in consideration of the payment to me of said sum, I hereby release and discharge the City of Portland, its officers, agents and employees from all liability arising from or consequent upon the payment to me of said sum and I hereby assume and agree to and with said City, its officers, agents and employees that I will defend and indemnify them against any claim, suit, action or judgment in consequence of the delivery of checks for, or payment of, said sum.

A. The Auditor shall recognize no power of Attorney or assignment of wages, salary, disability or retirement benefits, reimbursement of expenses or contributions, or any other monies owing a person by virtue of past or present employment with the City, after the death of that person, notwithstanding Section 5.12.030.

B. If the Auditor receives notice of garnishment (except from the State Tax Commission of Oregon) or an order for payment of money into any federal or state court in Oregon, which notice or order applies to wages, salary or other monies due an employee of the City, and the employee is deceased or dies at any time before return is made thereon, the Auditor shall hold all monies pending further order of court and shall immediately notify the City Attorney of the notice or order and of the employee’s death. Upon receipt of this notice the City Attorney shall file a supplemental pleading in the case wherein the garnishment or levy was undertaken, to advise the court of the employee’s death and to obtain an order of court as to what disposition should be made of the monies held by the Auditor. The procedure authorized herein shall be followed notwithstanding Section 5.12.050.

C. The Auditor shall make a return upon any notice of levy issued by the United States Treasury Department and any notice of garnishment issued by the State Tax Commission of Oregon, of wages, salary or other monies due an employee of the City, if the employee is living at the time the notice is served. If the employee is deceased at the time the notice is served, the Auditor shall:

1. Make payment as provided in Section 5.08.160, advising the recipient thereof, in writing, of the existence of the tax lien; and

2. Notify the taxing authority, in writing, of the fact and date of the employee’s death, the date and amount of the payment, the name and address of the recipient thereof, and the recipient’s relationship to the deceased. The procedure authorized herein shall be followed notwithstanding Section 5.12.050.

A. The City of Portland, Oregon (City), maintains a deferred compensation plan authorized by Section 457 of the Internal Revenue Code that was originally adopted by City Council on December 17, 1981 and became effective January 1, 1982.

B. Name of Plan. This Plan shall be known as the City of Portland Governmental 457(b) Plan.

C. Effective Date. The effective date of this Plan, as amended, shall be August 11, 2005.

D. Investment Providers. As of August 11, 2005, the investment providers offered by the Plan are:

(Amended by Ordinance No. 179417, effective August 11, 2005.) As used in this Chapter, unless the context otherwise requires:

A. “Account” means the bookkeeping account or accounts maintained for each Participant reflecting the cumulative amount of the Participant's Deferred Compensation, including any income, gains or losses attributable to the investment of the Participant's Deferred Compensation, and further reflecting any distributions to the Participant or the Participant's Beneficiary and any fees or expense charged against such Participant's Deferred Compensation, which are maintained by the Participant’s Investment Providers. Account also includes appropriate rollover accounts under 5.09.150 D. that must be segregated.

B. “Acknowledgement” means the document that highlights some of the terms of the Plan and contains the Participant’s acknowledgement and understanding of the terms of the Plan.

C. “Beneficiary” means the person(s) designated by the Participant to receive any benefits payable under the plan in the event of the Participant's death. The term Beneficiary includes the Participant's estate.

D. “Beneficiary Designation” means a document specifying the Beneficiary/Beneficiaries who is/are to receive any part of the Participant's Account in the event of the Participant's death.

E. “City Treasurer” means the City employee that manages the Treasury Division of the Bureau of Financial Services.

G. “Compensation” means the total annual remuneration for employment payable by the City that would be included in the Federal gross income of the Participant but for the Participant's election to participate in the Plan.

H. “Deferred Compensation” means the amount of Compensation otherwise payable to the Participant that the Participant and the City mutually agree shall be deferred in accordance with the provisions of the Plan.

I. “Employee” means an elected official of the City, or a full-time or part-time City Employee who is eligible for benefits offered by the City. Independent contractors and leased employees are not eligible.

J. “lncludable Compensation” means the remuneration for service performed for the City which is currently includable in gross income (such amount will not include any amounts excluded from gross income pursuant to this Chapter). Severance pay, vacation payoffs, sick payoffs are excluded.

K. “Investment Providers” means the financial institutions that have contracts with the City to provide investment services to Participants consistent with the terms of the Plan.

L. “Normal Retirement Age” means age 70-1/2 or that age selected in writing by a Participant in accordance with this Subsection. A Participant’s Normal Retirement Age determines the period during which a Participant may defer those amounts described in Section 5.09.050 C. Once a Participant has to any extent utilized the “catch up” provisions of Section 5.09.050 C, the Participant’s Normal Retirement Age may not be changed. As an alternative to age 70-1/2, a Participant may, at any time prior to Severance from Employment or prior to utilization of the “catch up” provisions of Section 5.09.050 C., designate his or her Normal Retirement Age to be any of the following:

a. Not earlier than the earliest age at which the Participant has the right to retire and receive immediate and unreduced retirement benefits from the pension plan of which the Participant is a member (i.e., the Fire and Police Disability, Retirement and Death Benefit Plan for fire fighters and police officers who are members of that Plan and the Public Employee's Retirement System (PERS) for all other Participants); and

2. For a Participant who continues in the service of the City after attaining age 70-1/2 not having previously elected an alternate Participant’s Normal Retirement Age pursuant to 1, above, the Normal Retirement Age shall not be later than the Participant’s mandatory retirement age, if any, or the age at which the Participant actually severs from employment with the City.

M. “Participant” means any Employee who fulfills the eligibility and enrollment requirements of this Chapter.

N. “Participation Agreement” means an agreement between the City and a Participant, on a form prescribed by the City, that provides for the deferral of Compensation due a Participant to a future date for service currently rendered by the Participant to the City.

O. “Plan” means the program established by this Chapter which has as its purposes the deferral of Compensation to Participants and the deferral of income taxation on the Deferred Compensation.

P. "Plan Administrator" means the City Treasurer, or his or her designee, who prepares and provides documents, materials and support services required to administer the Plan.

R. “Records” means the materials and forms maintained in files for each Participant in the Deferred Compensation Plan.

S. “Settlement and Payment Election Agreement” means an agreement between the City and a Participant on a form prescribed by the City that allows the Participant to elect and change the manner in which the value of the Participant’s Account is paid.

T. “Severance from Employment” means the severance of the Participant’s employment with the City. A Participant shall be deemed to have severed his employment with the City when, in accordance with the established practices of the City, the employment relationship is considered to be terminated.

U. 1. “Unforeseeable Emergency” means severe financial hardship to the Participant resulting from

a. a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Section 152a of the Internal Revenue Code) of the Participant,

c. the need to pay for the funeral expenses of the participant's spouse or dependent (defined in code section 152(a),) or

d. other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

2. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved;

b. By liquidation of the Participant's assets to the extent the liquidation of such assets would not itself cause severe financial hardship; or

Examples of what are not considered to be unforeseeable emergencies include the need to send a Participant's child to college or the desire to purchase a home.

The purpose of this Chapter is to establish a program that has as its purpose the deferral of Compensation to eligible Employees and the deferral of income taxation on the Deferred Compensation. The program established by this Chapter is limited to the terms contained in the Chapter, and as such no other plan provisions are to be implied or assumed, even if such provisions would be permissible under the Internal Revenue Code. Except as specifically set forth otherwise, in the event the terms or provisions of any Component Plan, summary or description of this Plan or of any other instrument are interpreted as being in conflict with the provisions of this Plan, the provisions of this Plan shall be controlling.

(Amended by Ordinance Nos. 176426 and 179417, effective August 11, 2005.) This Chapter shall be administered by a Deferred Compensation Advisory Committee (the Committee) with the assistance of the Bureau of Financial Services. The Committee shall consist of the Chief Administrative Officer of the Office of Management and Finance or his or her designee, the City Treasurer, and the Director of the Bureau of Financial Services. The City Treasurer shall serve as Chairperson. The Committee shall study all matters connected with providing a deferred compensation plan on the best basis possible with relation both to the welfare of the Participants and the City. The Committee shall have authority to devise specifications for deferred compensation plans, advertise for responses and bids, and analyze responses. The City Treasurer, or his or her designee, at the direction of the Committee, is authorized to negotiate and execute all contracts, including contracts with Investment Provides. The terms of any contract with the Plan may authorize the assessment of fees to be charged against Investment Providers or other contractors that may be necessary to fund the administration of the Plan. The City Treasurer, or his or her designee, at the direction of the Committee, is further authorized to prepare and provide any other documents, materials and support services that may be required to administer the Plan. The Committee members may participate in the Plan established herein if otherwise eligible, but shall not be entitled to participate in decisions relating solely to their own participation.

The Committee shall review, approve and implement the marketing and education of employees about the Plan. All promotional and City sponsored employee marketing and education efforts relating to the Plan may be coordinated with other similar efforts sponsored by the Employee Benefits Division of the Bureau of Human Resources. The Committee shall not offer investment advice to employees or plan Participants.

A. Eligibility. Employees shall be eligible to enroll as Participants in the Plan, as provided in this Section, on the first day of the month following the month in which they will have completed 30 days in a paid status. A Participant who terminates his or her employment with the City and then returns to City employment after the expiration of 12 calendar months following said termination date must comply with the eligibility waiting period applicable to such person upon his or her return before being eligible to participate in the Plan again. A Participant's right to participate and to have his or her salary reduced in connection with the Plan shall cease in the event the Participant takes a leave of absence without pay, but any such Participant may continue full participation in the Plan upon returning to pay status with the City. A Participant’s right to participate and to have his or her salary reduced in connection with the Plan shall cease while the Participant is receiving distributions in accordance with, and subject to, the restrictions of sections 5.09.070, 5.09.080, 5.09.090, and 5.09.110.

B. Enrollment in the Plan. An eligible Employee may become a Participant and defer Compensation not yet earned by executing a written Participation Agreement, and delivering it to the Bureau of Financial Services, Treasury Division. Compensation will be deferred for any calendar month only if a Participation Agreement providing for such deferral has been entered into by the 15^th of the preceding month

C. The Participation Agreement shall be on a form provided by the City, which shall include the following:

4. Other relevant statements necessary and appropriate for carrying out the purposes of this Chapter.

D. When an eligible Employee executes a Participation Agreement, an Acknowledgement and a Beneficiary Designation shall also be completed. A Participant may change the Beneficiary Designation at any time by completing a new Beneficiary Designation and delivering it to the Bureau of Financial Services, Treasury Division. A change of Beneficiary Designation shall become effective on the date received by the Bureau of Financial Services, Treasury Division.

E. The City, upon written request of an eligible Employee, will reduce each pay period the salary of the eligible Employee by an amount of money designated by that Employee in the Employee's Participation Agreement. The City may pay that amount to the Investment Provider designated in the Employee's Participation Agreement.

F. Once per month, a Participant may modify his or her Participation Agreement as to the amount of Compensation not yet earned to be deferred during each Plan Year. Any modification as to the amount of Compensation to be deferred by a Participant must be made in writing, and received by the Bureau of Financial Services, Treasury Division, by the 15^th of the month prior to the month in which said modification is to become effective.

G. A Participant may revoke the Participation Agreement at any time with respect to any pay period by written notification, which must be received by the Bureau of Financial Services, Treasury Division, at least 2 weeks prior to the date upon which the Participant desires the revocation to be effective.

H. A Participant who has severed his or her employment or who has revoked the Participation Agreement may again participate in the Plan, provided that he or she is eligible, by executing a new Participation Agreement.

I. For purposes of Plan administration, a revocation of a Participation Agreement will be considered a Participation Agreement modification. The most recent Participation Agreement shall be controlling with respect to all accounts, including amounts deferred under prior agreements.

A. The amount of Compensation which may be deferred by a Participant shall be subject to the following limits:

2. The maximum amount of Compensation which may be deferred during a plan year shall be in accordance with the following schedule:

1982-1997	$7,500 or 33.33% of Participant’s Includable Compensation
1998-2000	$8,000 or 33.33% of Participant’s Includable Compensation
2001	$8,500 or 33.33% of Participant’s Includable Compensation
2002	$11,000 or 100% of Participant’s Includable Compensation
2003	$12,000 or 100% of Participant’s Includable Compensation
2004	$13,000 or 100% of Participant’s Includable Compensation
2005	$14,000 or 100% of Participant’s Includable Compensation
2006	$15,000 or 100% of Participant’s Includable Compensation
2007 thereafter:	Amount shall be administered to reflect changes in accordance with sections 457(e)(15) and 415(d) of the Internal Revenue Code

A. Three year catch-up provision: Notwithstanding the language of Section 5.09.050 A. 2, during each of a Participant’s last 3 taxable years ending before the Participant attains Normal Retirement Age, the maximum amount deferred shall be in accordance with the following schedule:

For the Year:	The lesser of:
2002	$22,000
2003	$24,000
2004	$26,000
2005	$28,000
2006	$30,000 or the sum of the maximum allowed under Section 5.09.050 A. 2. for the current taxable year plus so much of the maximum established for purposes of Section 5.09.050 A. 2. for prior taxable years as has not previously been deferred under Section 5.09.050 A. 2.

For the purposes of this section, a prior year shall be taken into account only if such year began after December 31, 1981, and the participant was eligible to participate in the plan during all or a portion of the year. Participant may only make this election once with respect to any code section governmental 457(b) deferred compensation plan of the employer.

B. Age 50 catch-up provision: All Participants who are eligible to make elective deferrals under the Plan and who have attained age 50 before the close of the calendar year shall be eligible to make catch-up contributions in accordance with Schedule A, and subject to the limitations of Sections 414(v) and 414(v)(6)(c) of the Code. Additional deferrals under this section of the Plan may be made except during the three years prior to normal retirement age while utilizing the catch-up provision provided for in Section 5.09.055 A. of the Plan. Age 50 catch-up contributions will not be taken into account for purposes of determining a participant's underutilized amounts under the three year catch-up provision.

For the Year:	Additional deferral amount:
2002	$1,000
2003	$2,000
2004	$3,000
2005	$4,000
2006	$5,000

C. Coordination with other plans. If a Participant participates in more than one deferred compensation plan authorized under Section 457 of the Internal Revenue Code (IRC), the maximum deferral under all such plans shall not exceed the applicable deferral limits described in Section 5.09.050, as adjusted by the Secretary of the Treasury (subject to modification by the catch-up limitations described in Section 5.09.055), which also shall apply to all IRC Section Governmental 457(b) Plans in which the Participant participates. If a Participant participates in a plan described in Section 403 (b), 401 (k), 408 (k) or 501 C (18) of the IRC, amounts deferred by the Participant to such plan(s) and excluded from the Participant’s gross income in any taxable year under such plan(s) shall not reduce the limitation described in Section 5.09.050 of this Section and the catch-up limitation described in Section 5.09.055.

D. Uniform Service Provision. This Plan shall be administered in accordance with Section 414(u) of the Internal Revenue Code of 1986, as amended, for employees who return to work after absences from employment due to military service. Accordingly, notwithstanding the provisions of this section limiting the amount of compensation which may be deferred under the Plan, a Participant who is entitled to reemployment pursuant to the terms of the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) may defer an additional amount under the Plan as provided in that Act for the years of his or her service in the uniformed services (as defined in USERRA). Any such deferrals will not be subject to the annual limits on deferrals set forth in this section in the year in which deferred, but shall be subject to the limits for the year to which such deferrals relate. This subsection shall apply retroactively to December 12, 1994.

(Added by Ordinance No. 179417, effective August 11, 2005.) A Participant who participates in the Plan and another Governmental 457(b) Plan of another employer shall be responsible for complying with the deferral limits. In the event of an excess amount, the Participant shall notify the Committee so that the excess may be distributed as soon as practicable after the Committee determines that the amount is an excess deferral.

A. The City shall maintain records necessary and appropriate to the efficient administration of this Chapter, and such records shall be maintained by the City until a Participant or his or her designated Beneficiaries have received the payment of such amounts as they are entitled to receive under the terms of the applicable Settlement and Payment Election Agreement.

B. All amounts of Compensation deferred pursuant to this Chapter, shall be held in a trust, custodial account or contract described in Internal Revenue Code Section 457(g). Any change in the net value of the assets of a Participant invested under the Plan shall result in a commensurate change in the total amount distributable to the Participant or the Beneficiary of the Participant and shall not result in any increase or decrease in the net worth of the City.

C. As to those amounts held in trusts, notwithstanding any contrary provision of the Plan, in accordance with section 457(g) of the Internal Revenue Code, all amounts of compensation deferred pursuant to the Plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights shall be held in trust for the exclusive benefit of Participants and Beneficiaries under the Plan. Any trust under the Plan shall be established pursuant to a written agreement that constitutes a valid trust under the law of the State of Oregon. All amounts of compensation deferred under the Plan shall be transferred to a trust established under the Plan within a period that is not longer than is reasonable for the proper administration of the accounts of Participants.

D. As to those amounts held in annuity contracts, notwithstanding any contrary provision of the Plan, including any annuity contract issued under the plan, in accordance with section 457(g) of the Internal Revenue Code, all amounts of compensation deferred pursuant to the Plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights shall be held in one or more annuity contracts, as defined in section 401(g) of such Code, issued by an insurance company qualified to do business in the State of Oregon, for the exclusive benefit of Participants and Beneficiaries under the Plan. For this purpose, the term "annuity contract" does not include a life, health or accident, property, casualty, or liability insurance contract. All amounts of compensation deferred under the Plan shall be transferred to an annuity contract described in section 401(f) of the Internal Revenue Code within a period that is not longer than is reasonable for the proper administration of the accounts of Participants.

E. As to those amounts held in custodial accounts, notwithstanding any contrary provision of the Plan, in accordance with section 457(g) of the Internal Revenue Code, all amounts of compensation deferred pursuant to the Plan, all property and rights purchased with such amounts, and all income attributable to such amounts, property, or rights shall be held in one or more custodial accounts for the exclusive benefit of Participants and Beneficiaries under the Plan. For purposes of this paragraph, the custodian of any custodial account created pursuant to the Plan must be a bank as described in section 408(n) of the Internal Revenue Code, or a person who meets the nonbank trustee requirements of paragraphs (2)-(6) of section 1.408-2(e) of the Income Tax Regulations relating to the use of nonbank trustees. All amounts of compensation deferred under the Plan shall be transferred to a custodial account described in section 401(f) of the Internal Revenue Code within a period that is not longer than is reasonable for the proper administration of the accounts of Participants.

F. When a Participant agrees to participate in the Plan, the Participant may indicate his or her preference with respect to the investment or deposit option to be used in investing or depositing the Participant's deferred income hereunder, but the Participant's choice shall not be binding on the City.

A. Subject to the restrictions on the distribution of benefit payments appearing in Sections 5.09.080, 5.09.090, 5.09.100 and 5.09.110, the options available to a Participant or Beneficiary for distributing the value of the Participant's Account are:

2. Substantially equal monthly, quarterly, semi- annual or annual installments until the Account is exhausted.

3. Substantially equal monthly, quarterly, semi- annual or annual payments for a designated period.

4. Periodic payments for the life of the Participant with continuation of the payments or a percentage of the payments for the lifetime of the Participant's spouse.

5. Payments equal to payments made by the issuer of a retirement annuity policy.

6. Such other option as the Participant chooses, and as authorized by this Plan.

B. A Participant or Beneficiary must select a payment option at least 30 days before the payment of benefits is to commence.

A. With respect to distributions under the Plan made for calendar years beginning on or after January 1, 2002, the Plan will apply the minimum distribution requirements of section 401(a)(9) of the Internal Revenue Code in accordance with the regulations under section 401(a)(9) that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary. This amendment shall continue in effect until the end of the last calendar year beginning before the effective date of final regulations under section 401(a)(9) or such other date as may be specified in guidance published by the Internal Revenue Service.

B. Distribution of a Participant’s Account to a Participant or a Beneficiary shall be made in accordance with the manner and method of payments selected in the Settlement and Payment Election Agreement, which election may be changed by a Participant or Beneficiary, subject to the restrictions of the Plan.

C. At the time distribution to a Participant commences, such distribution shall be made in a manner in which the Participant will receive a minimum portion of the amount payable with respect to the Participant during the life expectancy of the Participant (as determined as of the commencement of the distribution). Therefore, distributions to a Participant must be made in accordance with the distribution tables promulgated by the Secretary of the Treasury pursuant to Section 457(d)(2)(B)(i)(I) of the Internal Revenue Code of 1986, as amended.

D. A minimum amount shall be distributed during each calendar year. The required minimum distribution for each calendar year shall be determined by dividing the Account balance (as determined under Section 1.104(a)(9)-1, Q&A F-5 of the proposed Federal income tax regulations or any successor to such regulations) by the lesser of the applicable life expectancy (as determined under Q&A F-1A(d) of Section 1.104(a)(9)-1 of the proposed Federal income tax regulations or any successor to such regulations) or the applicable divisor (as determined under Q&A-4 of Section 1.104(a)(9)-2 of the proposed Federal income tax regulations or any successor to such regulations).

E. Notwithstanding the provisions of subsection (D), distribution of a Participant’s Account may be made through an annuity contract that is purchased from an insurance company, with funds from the Participant’s Account. Any annuity contract so purchased must satisfy the applicable minimum distribution requirements of Section 1.401(a)(9)-1 of the proposed Federal income tax regulations (and any successor regulations) and the applicable minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2 of the proposed Federal income tax regulations (and any successor regulations). In the event such an annuity contract is purchased, the amount of the annuity payments shall be determined under the annuity contract.

F. In no event shall the distribution of a Participant’s Account commence earlier than:

3. when the Committee approves a distribution pursuant to an Unforeseeable Emergency of a Participant.

G. Distribution of a Participant’s Account to a Participant may commence no later than April 1 of the calendar year following the calendar year in which the Participant attains age 70-1/2 or actually severs from employment.

H. Notwithstanding Section 5.09.080(J), distributions of a Participant’s Account shall cease if the Participant is re-employed by the City.

I. All distributions hereunder shall be made in accordance with the regulations under Section 401(a)(9) of the Internal Revenue Code of 1986 (IRC), as amended, including Section 1.401(a)(9)-2 of the Federal income tax regulations and such other provisions as are prescribed by the Commissioner of Internal Revenue. Accordingly, no distribution shall be made under any option that does not satisfy IRC Section 401(a)(9), including Section 401(a)(9)(G).

J. Participants may elect changes to existing irrevocable election dates and/or payment amounts, except for selections made pursuant to Section 5.09.070 A.5. Participants may elect changes to election dates and/or payment amounts, except for selections made pursuant to Section 5.09.070 A.5.

K. Voluntary In-Service Distribution: Notwithstanding anything in this chapter to the contrary, a Participant who is an active employee of the City shall receive a distribution of the total amount payable to the Participant under the Plan if the following requirements are met:

1. the total amount payable to the Participant under the Plan does not exceed $5,000 (or the dollar limit under section 411(a)(11) of the Internal Revenue Code, if greater),

2. the Participant has not previously received an in-service distribution of the total amount payable to the Participant under the Plan pursuant to Section 5.09.080 I.

3. no amount has been deferred under the Plan with respect to the Participant during the two-year period ending on the date of the in-service distribution; and

L. Distribution of a Participant's Account shall commence no earlier than thirty-one (31) days following Severance from Employment.

(Replaced by Ordinance No. 177367; amended by 179417, effective August 11, 2005.)

A. Effective January 1, 2002, court ordered distributions in the form of QDROs are recognized and allowed by the Plan. The Plan administrator shall adopt reasonable procedures to determine the qualified status of domestic relations orders and to administer the distributions hereunder. If administered by the City, QDROs must be submitted in a form acceptable to the City, and may order Participant Plan assets be divided into a separate account for the benefit of an Alternate Payee. Distribution of those assets may be allowed as provided in 5.09.090 B. and C. All state and federal taxes on distributions from the Alternate Payee's account will be the responsibility of the Alternate Payee and not to the Plan Participant. The Alternate Payee's account shall be subject to the Internal Revenue Code and Regulations, state law, and the City Plan.

B. If administered by the City, the responsibility for the fees provided for under ORS 243.507 shall be apportioned to the Participant and the Alternate Payee based on the fraction of the plan assets received by the Participant and the Alternate Payee at the time the Alternate Payee's interest in the Plan is established. The apportioned fees shall be immediately paid to the City out of the distributions to the Participant and out of the distributions to the Alternate Payee until their respective obligations are paid.

C. Any QDRO submitted to and accepted by the City Plan may provide that an Alternate Payee may take an immediate distribution of some or all of the assets established in the separate account or make any distribution election from the payout options available to Plan Participants, or may elect to leave the separate account in the Plan, in which case, the Alternate Payee shall have the same rights as a beneficiary under the Plan.

A. Upon the death of a Participant, Former Participant or Alternate Payee, the Plan Administrator shall direct that the deceased Participant’s, Former Participant’s or Alternate Payee’s Participant Account, be distributed to the Beneficiary in accordance with the provision of this Section 5.09.100.

B. The designation of a Beneficiary shall be made on a form satisfactory to the Plan Administrator. A Participant, Former Participant, or Alternate Payee may at any time revoke his designation of a Beneficiary or change his Beneficiary by filing written notice of such revocation or change with the Plan Administrator. In the

event no valid designation of Beneficiary exists at the time of the Participant’s, Former Participant’s, or Alternate Payee’s death, the death benefit shall be payable to the Participant’s, Former Participant’s, or Alternate Payee's estate.

C. The Plan Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of the value of the Participant Account of a deceased Participant, Former Participant, Alternate Payee or Beneficiary, as the Plan Administrator may deem appropriate. The Plan Administrator’s determination of death and of the right of any person to receive payment shall be conclusive.

D. Death benefits payable to a Beneficiary shall be made in a form as selected by the Beneficiary in accordance with the available options. In the event a Beneficiary fails to make an election as to a benefit distribution option, any benefit payable to such Beneficiary shall be distributed in a lump sum payment in accordance with Code Section 401(a)(9). The terms of any annuity contract purchased and distributed by the Plan to a Beneficiary shall comply with the requirements of the Plan.

E. Notwithstanding any provision in the Plan to the contrary, distributions upon the death of a Participant or Former Participant, shall be made in accordance with the following requirements and shall otherwise comply with Code Section 401(a)(9) and the Regulations thereunder.

F. In accordance with the Beneficiary’s election, if minimum payments under Code Section 401(a)(9) have not begun upon the death of a Participant or Former Participant and the designated Beneficiary is not the Participant’s surviving spouse, death benefit payments must:

1. begin to be distributed to the designated Beneficiary no later than the December 31 of the calendar year immediately following the calendar year of the Participant’s or Former Participant’s death payable over a period not to exceed the life expectancy of the Beneficiary; or

2. be distributed no later than the December 31 of the calendar year containing the fifth anniversary of the Participant’s or Former Participant’s death.

G. In accordance with the Beneficiary’s election, if the designated Beneficiary is the Participant’s or Former Participant’s surviving spouse and minimum payments under Code Section 401(a)(9) have not begun upon the death of a Participant or Former Participant, minimum payments to the surviving spouse as the designated Beneficiary must begin by the later of the:

1. December 31 of the calendar year immediately following the calendar year in which the Participant or Former Participant dies, or

2. December 31 of the calendar year in which the Participant or Former Participant would have attained 70 ½.

The payments to the surviving spouse as the designated Beneficiary must be made over a period not to exceed the surviving spouse’s life expectancy. Notwithstanding the foregoing, for purposes of this subsection, an Alternate Payee who is a spouse or former spouse will be treated as a Participant’s or Former Participant’s surviving spouse.

H. If there is no designated Beneficiary as of September 30 of the year following the year of the Participant’s or Former Participant’s death, the Participant’s or Former Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s or Former Participant’s death.

I. If the Participant or Former Participant dies on or after the date distributions begin and there is a designated Beneficiary, distributions shall be based on the longer of the remaining life expectancy of the Participant or Former Participant or the remaining life expectancy of the Participant’s or Former Participant’s designated Beneficiary.

J. Life expectancies calculations will be computed using the factors in the Single Life Table set forth in Section 1.401(a)(9)-9, A-1 of Regulations, as follows:

1. The Participant’s or Former Participant’s remaining life expectancy is calculated using the age of the Participant or Former Participant in the year of death, reduced by one for each subsequent year.

2. If the Participant’s or Former Participant’s surviving spouse is the Participant’s or Former Participant’s sole, primary designated Beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant’s or Former Participant’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year.

3. If the Participant’s or Former Participant’s surviving spouse is not the Participant’s or Former Participant’s sole, primary designated Beneficiary, the designated Beneficiary’s remaining life expectancy is calculated using the age of the Beneficiary in the year following the year of the Participant’s or Former Participant’s death, reduced by one for each subsequent year.

4. If the Participant or Former Participant dies on or after the date distributions begin and there is no designated Beneficiary as of September 30 of the year after the year of the Participant’s or Former Participant’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant’s or Former Participant’s death is the quotient obtained by dividing the Participant Account by the Participant’s or Former Participant’s remaining life expectancy calculated using the age of the Participant or Former Participant in the year of death, reduced by one for each subsequent year.

(Amended by Ordinance No. 179417, effective August 11, 2005.) A Participant may apply on a form supplied by the City Treasurer, or his or her designee, for payment prior to Severance from Employment or Retirement from City employment but such applications may be granted only if the Participant is experiencing an Unforeseeable Emergency which would cause undue hardship if payment were denied. If the City Treasurer, or his or her designee, finds that a Participant is experiencing an Unforeseeable Emergency, he or she may approve an amount reasonably needed to satisfy the unforeseen emergency be made to the Participant. Payment will be made within 90 days of the date of such approval. Participants who request and are granted a hardship withdrawal from their deferred compensation account may not have their salaries reduced under the terms of this Chapter for a period of 6 months following such hardship withdrawal. If the City Treasurer, or his or her designee, denies the application for payment, said denial shall be in writing. A Participant may appeal the decision to the Committee. An appeal must be in writing and received by the City Treasurer within 30 days of the date of denial. The committee shall issue a written decision within 90 days of receipt of the appeal by the City Treasurer. Any decision of the Committee is final.

(Amended by Ordinance No. 177367, effective April 1, 2003.) Neither the Participant, nor the Participant's Beneficiary shall have any right to commute, sell, assign, transfer, or otherwise convey the right to receive any payment which may be due the Participant under the plan, which payments and rights thereto are expressly declared to be nonassignable and nontransferable. Nor shall any amounts deferred pursuant to this Chapter be subject to attachment, garnishment, or execution or be transferable by operation of law in the event of bankruptcy or insolvency unless otherwise required by law. The preceding paragraph prohibiting the assignment or alienation of benefits shall not apply to Qualified Domestic Relations Orders as set forth in 5.09.090 which may be issued pursuant to a court decree of annulment or dissolution of marriage or of separation, or the terms of any court order or court approved property settlement agreement incident to any court decree of annulment or dissolution of marriage or of separation which is determined by the City Treasurer or his or her designee to satisfy the requirements of ORS 243.507. The City Treasurer or his or her designee shall establish written procedures to determine whether the above described decrees or the property settlement agreements incident to such decrees satisfy ORS 243.507 and to administer distributions under such orders.

A. The City may terminate the Plan provided for in this Chapter at any time. Upon such termination, the Participants in the Plan will be deemed to have withdrawn from the Plan as of the date of such termination and their full Compensation on a non-deferred basis will be thereupon restored. In the event the City terminates the plan, the value of all Accounts shall be distributed to the Participants or their Beneficiaries in accordance with the method of payment designated by the Participant on a Settlement and Payment Election Agreement.

B. The City may amend the provisions of this Plan at any time, provided, however, that all amendments are in compliance with the Internal Revenue Code and that no amendment shall affect the rights of any Participant or Beneficiary to the receipt of benefits accrued under the Plan prior to such amendment.

(Amended by Ordinance No. 179417, effective August 11, 2005.) This Plan shall accept for transfer those amounts of compensation previously deferred by a Participant pursuant to another eligible plan of deferred compensation maintained under Section 457 of the Internal Revenue Code of 1986, as amended, by another employer.

A. On or after July, 1, 2002, Participants may elect to rollover assets to the Plan from an IRA or qualified retirement plan pursuant to Sections 401(a), 403(b), and 401(k) of the Internal Revenue Code. The Investment Providers shall hold and segregate all rollover assets within the Participant’s Account in accordance with the provisions of the Internal Revenue Code. A Participant may choose to receive a distribution from his 457(b) transfer account and non-Governmental 457(b) rollover account prior to a distributable event.

B. Notwithstanding any other provisions of this Chapter relative to the commencement of benefits upon Severance from Employment, if a Participant severs from City employment or becomes employed by or performs services for another employer which maintains an qualified retirement plan pursuant to Sections 401(a), 401(k), 403(B) and 457 of the Internal Revenue Code, or any qualified individual retirement account (IRA), all or any portion of the Participant’s Account and his or her assets in this Plan shall, at the Participant's election, be transferred directly from this Plan to such other eligible retirement or deferred compensation plan, provided such other eligible plan will accept the transferred amount and obligation.

(Added by Ordinance No. 179417, effective August 11, 2005.) Prior to Severance from Employment, a Participant may elect to allow the Plan to transfer assets from the Participant’s account with the Plan to a designated government defined benefit plan for the purchase of permissible service credits pursuant to Section 457(e) (17), provided, however, that the designated defined benefit plan will accept such a transfer of assets.

In the event the Plan has assets of Participants or their Beneficiaries who, after the Participants’ Severance from Employment, cannot be located so as to properly distribute assets to the Participant or Beneficiary under the terms of the Plan, the Plan Administrator shall make all reasonable efforts to locate said Participants and Beneficiaries. If after such efforts, the Participant or Beneficiary cannot be located, the Plan Administrator shall designate such assets as unclaimed property, and thereby abandoned, and shall transfer said assets to the State of Oregon according to the Uniform Disposition of Unclaimed Property pursuant to ORS 98.302, et seq., as amended, if such assets remain unclaimed for two years after said designation.

A. Neither the City nor the Committee shall be liable for the investment decisions made by Participants.

B. Neither the City nor the Committee manages the Participants’ Accounts, and is therefore not responsible or liable for the performance and accuracy of Participant’s Accounts.

A. “Charitable organization” means any entity described in Internal Revenue Code section 501(c)(3) (26 USC § 501(c)(3)) and exempt from federal income tax under Internal Revenue Code section 501(a) (26 USC § 501(a)) and supported in part by voluntary contributions from the public and which, unless exempt, is registered with the Attorney General of Oregon or the Oregon Secretary of State as a charitable corporation or non-profit organization.

B. “Umbrella organization” means an entity serving as the agent of a group of member charitable organizations to which it disburses funds or products or an entity that grants funds or products to charitable organizations. An umbrella organization shall endorse the program objectives of its member or recipient charitable organizations and shall ensure that such charitable organizations comply with all the requirements of this Chapter. The umbrella organization shall be a charitable organization. Any charitable organization may, under the provisions of this Chapter and in conjunction with nine other charitable organizations, form an umbrella organization.

C. “Annual Charity Drive” means the annual fund- raising campaign conducted by umbrella organizations that have been approved by the Council pursuant to this Chapter. The Annual Charity Drive will occur between September 1 and November 1 each year and at that time approved umbrella organizations will be permitted to engage in fund-raising activities on the City’s premises and receive pledges of financial aid which may be paid through the payroll deduction system.

D. “Committee” means the Charitable Campaign Committee created by Section 5.10.020 of this Chapter.

(Amended by Ordinance No. 165770, Aug. 26, 1992.) There is hereby created a Charitable Campaign Committee, which shall consist of five members, all of whom must be employees of the City. Each Commissioner and the Mayor shall appoint one member to the Committee. Members shall be appointed for terms of two years. Upon the occurrence of a vacancy on the Committee a successor shall be appointed by the person whose absence creates the vacancy. Members shall serve at the discretion of their appointing Commissioner or Mayor. All members shall serve without additional compensation. No member may serve on the Committee more than six consecutive years. The Committee shall select by majority vote a chairperson and vice-chairperson. The Mayor or the Mayor’s designee shall appoint a recording secretary from his department who shall be responsible for keeping the record of the Committee.

The Committee shall annually review and establish rules and regulations for the Annual Charity Drive, which shall be available after January 1. The Committee shall consider all new applications and statements of intent to continue participation for the Annual Charity Drive after April 1. The Committee shall meet at least twice annually in order to administer this Chapter.

The Mayor or the Mayor’s designee shall provide staff assistance in support of the Committee.

In order to be eligible to participate in the Annual Charity Drive, an umbrella organization must apply for and receive approval from the Council.

(Amended by Ordinance No. 165770, Aug. 26, 1992.) Umbrella organizations shall submit applications to participate in the Annual Charity Drive on forms provided by the Committee, which shall be available at the Office of the Mayor or the Mayor’s designee. Each application shall be filed with the Office of the Mayor or Mayor’s designee between January 1 and April 1 of each year in order for the applicant to be eligible to participate in the Annual Charity Drive.

If the umbrella organization has been deemed eligible for a two-year period, application need not be made for participating in the Annual Charity Drive for the second year of eligibility. Each umbrella organization shall, however, provide the Committee with a written notice of intent that it wishes to continue its participation in the Annual Charity Drive between January 1 and April 1 of each year. The notice of intent shall be accompanied by a notarized statement that the questions and supporting documentation contained in the original application remain correct and accurate. Any changes from the original application should be detailed and supporting documentation provided. The Committee reserves the right to request a new application be completed.

A. The name and address of the Umbrella Organization applying for permission to participate in the Annual Charity Drive.

B. The name(s) and address(es) of the person(s) who will be directly responsible for conducting the fund-raising activities.

C. A full statement of the character and extent of the charitable work being done by the umbrella organizations as well as the geographic region or location where the charitable work is done.

D. A statement to the effect that, if the application is approved, such approval will not be used or represented to be an endorsement by the City of the applicant.

E. Such other information as may be required by the Committee to carry out its duties under this Chapter.

(Amended by Ordinance No. 168638, Apr. 5, 1995.) The Committee shall recommend to the Council that Umbrella Organizations satisfying the following requirements be authorized to conduct fund-raising activities on City premises and receive donations through the City’s payroll deduction system.

A. Umbrella organizations must disburse or grant funds or products to at least nine charitable organizations and must demonstrate proof of such disbursements in the calendar year prior to its application. Each charitable organization receiving funds or products from an umbrella organization must meet all of the requirements of this Chapter.

B. Charitable organizations and umbrella organizations must have a policy and procedure of nondiscrimination in regard to race, religion, national origin, handicap, age, marital status, sex or sexual orientation applicable to persons

served by the charitable organization, applicable to charitable organization staff employment, and applicable to membership on the charitable organization’s governing board.

C. Funds contributed to charitable organizations by City employees must be used for the announced purposes. An umbrella organization’s fund raising and administrative expenses shall not exceed 25 percent of its unrestricted income as demonstrated by its annual financial reports. Designated contributions by employees shall not constitute restricted income.

D. An umbrella organization must have the express written permission of each charitable organization it represents to use said charitable organization’s name in the Annual Charity Drive.

E. Charitable organizations must conduct their fund-raising activities for the direct good or benefit of the public, located in the State of Oregon, the national community or the international community in the fields of health and human services, education, the environment, or the arts.

F. Umbrella organizations must provide documented proof of at least one year of operation. Both charitable and umbrella organizations shall satisfy all other criteria contained in this Chapter.

G. Both charitable and umbrella organizations must be governed by a Board of Directors which serves without compensation.

The Committee shall recommend to the Council that permission to participate in the Annual Charity Drive be granted to those umbrella organizations that it finds have satisfied the requirements contained in section 5.10.050. Umbrella organizations recommended for approval shall be presented to the Council no later than the first day of August preceding the Annual Charity Drive in which the Organization seeks to participate.

If the Council finds that the provisions of this Chapter have been satisfied by an umbrella organization requesting permission to participate in the Annual Charity Drive, it shall approve the application of the umbrella organization.

Approval by the Council of an umbrella organization’s application under this Chapter shall not constitute an endorsement by the City of Portland of the umbrella organization or any charitable organization represented by an applicant. No charitable organization or umbrella organization shall represent in any way that such approval constitutes an endorsement by the City of Portland.

A. The Committee may recommend that the Council revoke its decision that an umbrella organization be permitted to participate in the City of Portland’s Annual Charity Drive for violation of the provisions of this Chapter.

B. In the event that an umbrella organization fails to receive donations through the payroll deduction system from at least 25 employees, or total donations of at least $2,500, in any Annual Charity Drive, such organization will be ineligible to participate in the Annual Charity Drive for the following year. After its year of ineligibility expires, an umbrella organization may reapply to participate in the Annual Charity Drive.

C. In the event that the Council finds that a charitable organization or umbrella organization is or has been in violation of the provisions of this Chapter, the Council shall revoke its authorization for any such organization to participate in the Annual Charity Drive.

A. The Committee shall be responsible for establishing rules and regulations for the conduct of the City of Portland’s Annual Charity Drive. The Committee shall annually publish these rules and regulations no later than August 1 of each year.

B. Only umbrella organizations approved by the City Council are authorized to participate in the Annual Charity Drive.

C. The Annual Charity Drive shall be conducted in a manner which permits voluntary giving. No employee should feel in any way coerced to contribute.

D. The Annual Charity Drive authorized by this Chapter shall occur between September 1 and November 1 of each year.

E. The City may contract for the organization and management of the Annual Charity Drive.

F. Workplace solicitations of employees may occur only during the Annual Charity Drive and only in accordance with procedures established by the Committee. The collection of contributions in the form of personal checks shall be processed as determined by the Committee.

A. Umbrella organizations shall prepare and submit by April 1 of each year an annual report to the Committee which includes a full description of the umbrella organization’s solicitation activities, the names of its chief administrative personnel, a full disclosure of the source and use of contributions, and a financial report which shall be certified by an independent certified public accountant, at no cost to the City. The same information must also be available to the general public and the charitable organizations represented by the umbrella organization.

B. Charitable organizations receiving funds or products through a participating umbrella organization shall submit a special report containing such information as may be requested by the Committee to determine compliance with this Chapter.

(Amended by Ordinance Nos. 164381, 168638 and 177833, effective August 27, 2003.)

A. All administrative costs associated with the Annual Charity Drive shall be shared by all participating umbrella organizations in direct proportion to the total contributions received by the umbrella organization.

B. The Office of Finance and Administration will provide each umbrella organization with a monthly total of pledges made and pledges received. The City will not be liable for any uncollectible pledges.

C. In addition to the administrative costs referred to in Subsection B., each umbrella organization shall pay the 50 cents transaction fee referred to in Section 5.08.140.

A. The Office of Finance Administration shall deduct from each employee’s biweekly paycheck the amount(s) designated by the employee. Deductions shall be made either from the employee’s first paycheck of the month, second paycheck of the month, or both. All deductions shall be sent to the umbrella organization in the manner designated by the employee. The distribution of funds to each charitable organization represented by an umbrella organization shall be the responsibility of the umbrella organization.

It is unlawful for any person or employee rendering services to the City and having a salary or wage claim against the City to make an assignment of the claim for salary or wages, whether earned or unearned, except as provided in Section 5.12.030.

The Auditor of the City is hereby directed not to recognize any assignment or attempted assignment of a salary or wage claim against the City, except as provided in Section 5.12.030.

A. Any officer or employee may, with the approval of his Commissioner, assign his salary or wages to the Retail Credit Association of Portland, Oregon;

B. Nothing contained herein shall prohibit a City employee from executing a power of Attorney to Portland Employees’ Credit Union, an Oregon corporation, whereby the salary or wages, or any part thereof, of the employee is assigned to the corporation. The Auditor and Treasurer are hereby authorized to recognize all of the powers of Attorney to make on the payrolls any deductions required thereby, and to pay the Portland Employees’ Credit Union any sums authorized by the powers of Attorney.

C. Nothing contained herein shall prohibit a City employee from executing a power of Attorney to the Firemen’s Relief Association of the Firemen’s Beneficiary Association of Portland, an Oregon corporation, or to the Portland Police Beneficiary Association, an Oregon corporation, whereby the salary or wages, or any part thereof, of the employee is assigned to either of said corporations. The Auditor and Treasurer are hereby authorized to recognize all of the powers of Attorney.

Any officer or employee of the City who shall sell or assign, or attempt to sell or assign, any salary or wages in violation of the provisions of this Chapter shall thereby be deemed to have committed an act which is hereby declared sufficient cause for his removal.

(Amended by Ordinance Nos. 146745, 154642, 155429 and 173369, effective May 12, 1999.) Whenever any salary, wage or credit in possession of the City, belonging or owed to any person, firm or corporation whatsoever is garnished or levied upon, subject to the City Attorney’s approval of the original garnishment or levying documents, the Office of Fiscal Administration, Accounting Division, shall thereafter process such garnishments as follows:

A. With respect to the garnishment of City employees’ salaries of wages, the amount of garnishment shall be deducted from the employees’ salary or wages as a voluntary deduction through the computer process. The total amount of garnishment deducted for all employees whose wages are being garnished shall be transmitted to the Treasurer’s Office account by an authorization notice accompanied by a Garnishment Report in the form of a deduction register. The Garnishment Report will document the name(s) of the payee(s) according to the Notice of Levies or Writs of Garnishment received. The Treasury Division will then draw one or more checks, depending on the number of levies or writs received for each employee, against such office account in favor of the payee designated on the Notice of Levy/Writ of Garnishment.

B. With respect to Notices of Levy or Writs of Garnishment not affecting the salary or wages of a City employee and any Notice of Levy or Writs of Garnishment received after the biweekly payroll cutoff, the procedure for processing such Notices of Levy/Writs of Garnishment shall be as stated in this Subsection. The Office of Fiscal Administration, Accounting Division, shall place upon any check issued for such salary, wages or credit and an endorsement:

1. Noting that such salary, wages or credit has been garnished or levied upon as the case may be, together with identification of such garnishment or levy;

4. Directing the payment of the balance of money due on such warrant, if any, to the payee thereof.

The Office of Fiscal Administration, Accounting Division, shall then deliver such warrant to the Treasurer and the Treasurer shall deposit such warrant to the account of the City and draw one or more checks against such account in the amounts directed and in favor of the person or persons designated by the endorsement upon such warrant.

(Amended by Ordinance Nos. 168313, 169321 and 173369, effective May 12, 1999.) Emergency checks are hereby authorized to be issued under special circumstances. Such emergency checks shall be for the following specified purposes:

B. In payment of earned salaries or wages of employees compelled to leave the City by reason of death of a relative or other extraordinary circumstances;

C. In payment of loans or for the purchase of bonds by the City Treasurer where interest charges can be stopped or saved to the City, or for the purchase of postage;

D. In payment of commissions or assessments on property sold for the benefit of the Assessment Collection Fund;

E. In payment of any obligation where interest penalty charges or discounts on current expenses can be saved to the City.

Emergency checks may be authorized by the Bureau Manager or designee for any of the aforementioned purposes and no other authorization is needed.

(Amended by Ordinance Nos. 136544, 169321 and 173369, effective May 12, 1999.) Should an extraordinary condition arise not otherwise provided for by this Chapter, the Commissioner-In-Charge of the department requesting the issuance of an emergency check, or any person in such department so authorized by the Commissioner-In-Charge in writing filed with the City Auditor, shall present a signed requisition, accompanied by a statement in writing giving his/her reasons for so doing, which shall be authorization for issuance of an emergency check. The Commissioner-In-Charge, the Mayor and the City Auditor shall approve emergency checks for extraordinary circumstances provided for in this Section.

A. The Commissioner of Finance and Administration is hereby designated to supervise the preparation of the budget document.

B. The preliminary budget estimates of expenditures for the departments and bureaus for the ensuing year shall be prepared and submitted by the department heads to the Commissioner of Finance and Administration in the manner prescribed by him.

C. The Commissioner of Finance and Administration is hereby designated the Chairman of the budget Committee.

D. The capital expenditure limit is established at $5,000 to be adjusted annually based on the average inflation rate for the Portland Metropolitan Area, as determined from U.S. Department of Labor Statistics as certified by the City Auditor and shall be rounded to the nearest $100.

A. Reimbursable expenditures account budgeted in the General Fund is limited to reimbursable projects which were not anticipated when the budget was prepared. An estimate of revenue in an equal amount is also budgeted in the Reimbursable Revenues Account. Expenditures for such a reimbursable project shall be charged to the function which will execute the project, and the appropriation for reimbursable expenditures will be provided by transfer from the Reimbursable Expenditure Account. Receipts for reimbursements shall be credited to an appropriate revenue account other than the Reimbursement Revenues Account. A memorandum credit only will be made in the Reimbursement Revenues Account.

B. A transfer of appropriation shall not be made from the Reimbursable Expenditure Account if the proposed expenditure is already included in the budget of an appropriation other than reimbursable expenditures, either directly or indirectly, or if the reimbursement is already included in estimated revenues other than reimbursement revenues, either directly or indirectly. This appropriation shall not be used to increase the budget of a bureau or function when some item of estimated revenue is over-realized.

1. A transfer of appropriation shall not be made until it has been determined by the Commissioner In Charge of the bureau affected or by the Commissioner of Finance and Administration for other budgets that a deposit has been made to cover the estimated cost of the project or that payment is assured.

C. Transfers of appropriation for reimbursable projects may be made without special ordinance upon written authorization by the Commissioner of Finance and Administration and the Commissioner In Charge of the bureau affected. If no bureau is affected, then such transfer may be made upon written authorization of the commissioner of Finance and Administration.

D. If a reimbursable project is completed during the same year in which the transfer was made to set up the project and if there is a remaining balance of the appropriation transferred, the unused appropriation may be transferred back to the Reimbursable Expenditures Account without special ordinance on written authorization of the Commissioner of Finance and Administration.

The Auditor shall install and maintain suitable loose-leaf systems in keeping bonded lien accounts and other such bookkeeping accounts which are required to be kept by the provisions of the Charter. Such loose-leaf accounts shall be kept in lock binders and shall be placed in lock book form upon completion of the record of such account. Such loose-leaf system installed in binders shall be deemed a permanent record for all purposes required by the Charter of the City.

Each month the Auditor shall transmit to the head of each department a statement showing the unencumbered balance in each appropriation.

5.30.180 Waste, Improvements to the Property, and Nuisance Abatement Procedures.

This Chapter establishes a process for collecting delinquent liens and foreclosing delinquent liens on properties. The emphasis of the collection program will be to maintain good communication with property owners. However, the City bears responsibility for recovering its costs associated with collecting delinquent liens. Incentives and penalties are established to encourage payment. In addition, special payment plans are provided for persons having difficulties paying liens. Foreclosure should be used as a last resort in most circumstances, to protect the interests of bondholders and taxpayers of the City, and to recover costs incurred by the City in providing services.

The terms used in this Chapter shall be defined as provided in this Section, unless the content requires otherwise.

A. “Adjusted Prime Rate” means the interest rate as calculated by the higher of either the prime interest rate set by the City’s bank on December 31st of the previous year plus 300 basis points (3%), or twelve percent (12%) per annum.

B. “Bonded lien” means a lien which has been financed under the provisions of state law, City Code or City Charter.

C. “City lien docket” means the official City record maintained by the City Auditor for the entry of fees, charges, penalties or assessments as authorized by state law, City Code or City Charter. The fees, charges, penalties or assessments include, but are not limited to, costs related to the construction of economic or public improvements or for other improvements or purposes authorized by state law, systems development charges, costs of sidewalk repairs, costs of nuisance abatement, penalties assessed by the Code Hearings Office and fees associated with code enforcement.

D. “Collection costs” means the costs associated with the collection of liens, including but not limited to staff, mailing costs, billing and rebilling fees.

E. “Delinquent lien” means a bonded lien that is unpaid more than 30 days after the installment payment due date, or an unbonded lien which has not been paid within 30 days after entry upon the city lien docket.

F. “Foreclosure list” means a list of properties for foreclosure sale. The list contains, at a minimum, a description of each lien and a description of the property on which the lien is assessed.

G. “Foreclosure sale” means the legal process of selling real property, which allows the City to foreclose and to sell a delinquent lien through notice and sale.

H. “Lien” means an entry upon the city lien docket in favor of the City of fees, charges, penalties or assessments as authorized by state law, City Code or City Charter.

I. “Open lien” means a lien that has not been or cannot be financed, and that requires payment in full.

J. “Redemption” means the right of the property owner or any person with an interest in the property, excluding the purchaser in a foreclosure sale, to repurchase the foreclosed property by payment of the redemption price during the redemption period.

K. “Redemption period” means one year from the date of a foreclosure sale, commencing on the day after the sale and ending at 5:00 p.m. (PST) on the 365th day thereafter, unless the 365th day falls on a Saturday, Sunday or legal holiday specified in ORS 187.010 (2001), in which case the last day for redemption shall be 5:00 p.m. (PST) on the next working day.

L. “Redemption price” means the sales price plus redemption interest and redemption penalties accrued during the redemption period.

M. “Sales costs” means all costs, direct and indirect, associated with a foreclosure sale by the City, including but not limited to: county recording fees, title reports or other means of identifying persons with interest in the property, title insurance, service and notification, publication and advertising, posting, sale, and staff salaries, including benefits and overhead.

N. “Sales price” means the sum of the lien principal, interest and penalties, together with all collection costs and sales costs associated with the foreclosure sale.

A. The provisions of this Chapter apply to delinquent liens. This Chapter shall not apply to delinquent Sewer Safety Net liens, which are governed by Chapter 5.31.

B. The City shall not be limited to the foreclosure process in this Chapter. The City may elect to use other methods for foreclosure or sale of properties as authorized by the Charter, City Code or state law.

A. The Auditor shall maintain the City lien docket; maintain the records related to liens; process bonding contracts; and bill and collect open and bonded liens. As set forth elsewhere in this Chapter, the Auditor is also responsible for processing and approving or denying applications for the Catch-up Payment Program and the Hardship Payment Program; administering the foreclosure process; preparing foreclosure lists; and transmitting the foreclosure lists to the City Council for its review and approval.

B. The Treasurer shall administer the foreclosure sale process; withhold or withdraw property from foreclosure sale for purchase by the City; administer the redemption process; and execute deeds conveying the property sold. As provided under Section 3.08.030, the Treasurer may delegate this authority or such other authority as may be assigned under this Chapter.

C. Unless otherwise specifically directed by Council, the Bureau of General Services shall manage, maintain, rent or market for sale properties purchased by the City under this Chapter.

A. The Auditor shall establish a collection process for delinquent liens and shall be authorized to:

1. Establish written rules and procedures to carry out the provisions of this Chapter;

2. Establish fees, including a billing fee and rebilling fee, to recover billing costs and the costs of collecting delinquent lien amounts; and

3. In addition to the penalties and interest otherwise provided in this Section, establish increases in penalty amounts and the interest rate to encourage early payment of delinquent liens.

B. The Auditor shall impose a penalty each month until the delinquent lien is brought current, paid in full or the property owner signs a payment plan. The penalty will be calculated as follows:

1. Open delinquent liens shall be charged a penalty equal to one-quarter of one percent (.0025) of the total outstanding principal balance.

2. Bonded delinquent liens shall be charged a penalty equal to five percent (5.00%) calculated on the total amount of the installment that is delinquent.

C. The Auditor shall add interest to delinquent liens based on the following methods:

1. For a delinquent open lien, interest shall be assessed at the adjusted prime rate, calculated on the unpaid balance from the assessment date. The annual interest rate shall not be less than 12% for an open lien, except in the Hardship Payment Program. Lien payments made during the 30-day period following the assessment date shall not be charged this interest.

2. For a delinquent bonded lien, interest shall be calculated daily based on the amount of the unpaid principal balance and the interest rate set by the installment payment contract.

D. As liens become delinquent, the Auditor shall provide notice of the delinquency to the property owner. Notice(s) shall be sent by registered or certified mail. Notice(s) shall identify the property, the amount owing (principal, interest, penalties and collection costs) and estimate the sales costs that will be charged to the account. In addition, the notices shall identify the type of the delinquent lien account and the fact that the property will be placed on the foreclosure list unless the property owner elects to pay under the Catch-up Payment Program or brings the account current.

E. The Auditor may waive interest, penalties and collection costs on delinquent liens under the following conditions:

1. A delay in receiving payment or installment payment contract which is caused by a documented oversight, omission or error by City staff;

2. A one-time failure in making a payment by the property owner which is caused by a documented financial emergency; or

3. The sale or transfer of a property that is subject to a delinquent lien to a non-profit organization or government program satisfying the goals of an expressed public purpose.

A. The Auditor may evaluate individual delinquent open liens to develop recommendations on revising the payment amount of the lien and the payment terms. The Auditor’s recommendation shall be based upon the factors set forth in Subsection 5.30.060 D. Delinquent bonded liens may not be reviewed or adjusted.

B. The Collections Committee shall be comprised of four members, consisting of a representative from two members of the City Council, one representative from the Bureau of Development Services and one representative from the Office of Management and Finance. These four offices shall each designate their representative to the Committee.

C. The Committee shall meet from time to time, as necessary, to review and consider the Auditor’s recommendations. The Collections Committee shall make a written determination accepting, revising or rejecting the Auditor’s recommendations on adjusting the delinquent open lien payment amount and terms. The Collections Committee’s written determination shall be based upon the factors listed in Subsection 5.30.060 D. The Auditor shall notify the property owner in writing of the Collections Committee’s determination.

D. The factors to be considered when adjusting the payment amount and terms of delinquent open liens include, but are not limited to, the following:

1. Whether the property owner has committed any prior City Code violation, or has other delinquent liens, regardless of whether any administrative, civil, or criminal proceeding occurred;

2. The history of the property owner in taking all feasible steps or procedures necessary or appropriate to correct the violation or resolve any delinquencies;

6. Whether the violation was due to unavoidable accident, other conditions or circumstances beyond the property owner’s reasonable control, negligence, or an intentional act of the property owner;

7. The opportunity and degree of difficulty to correct the violation or resolve any delinquencies;

8. The economic or financial benefit accrued or likely to accrue to the property owner as a result of the violation;

9. The property owner’s cooperativeness and efforts to correct the violation for which the lien was assessed;

10. The costs to the City of investigation, enforcement and correction or attempted correction of the violation;

11. The total costs to the City for principal, penalty, billing, interest and collection charges; and

E. If the property owner accepts the Collections Committee’s determination on adjusting the delinquent open lien amount and payment terms, the owner shall enter into a written agreement prepared by the Auditor that contains the adjusted delinquent open lien amount and payment terms.

F. If the property owner rejects the Collection Committee’s determination, the owner may appeal the determination on adjusting the delinquent open lien amount and payment terms to the Code Hearings Officer as provided for in Chapter 22.10. However, if the owner has previously appealed the lien or the related code violations to the Code Hearings Officer, there shall be no right of appeal.

A. Under the Catch-up Payment Program, a property owner is allowed to bring a delinquent bonded lien current or pay in full by the end of an established period by increasing the monthly amount, or to pay a delinquent open lien in full by the end of an established period.

B. Qualifications. Any property owner with a delinquent lien may participate in the Catch-up Payment Program.

1. For a delinquent bonded lien, the minimum monthly payment must be equal to the scheduled regular payment, plus an amount necessary to repay the arrears by the end of the individual payment plan. At the conclusion of an individual payment plan, the Auditor shall bill any property owner who has a bonded lien and has complied with the individual payment plan, but has not paid the account in full, according to the Auditor’s standard billing procedures. The maximum period under this Program shall not exceed five years.

2. For a delinquent open lien, the minimum monthly payment must be equal to an amount necessary to pay the account in full by the end of the term of the individual payment plan. The maximum payment period under this Program shall not exceed five years. Interest shall be calculated at the prime interest rate set by the City's bank on December 31^st of the previous year plus 300 basis points (3%) per annum. The recalculated interest rate shall be applied to each individual payment plan on the first billing date following December 31^st of each year.

3. A payment for the specified amount in the Catch-up Payment Plan Agreement (CPPA) must be received in the Auditor's Office with the signed CPPA.

D. If a property owner fails to make any monthly payment before the completion of an individual catch-up plan, the Auditor may place the property on the foreclosure list in accordance with the priorities in Section 5.30.100.

A. Under the Hardship Payment Program, a property owner may pay only interest and billing charges for a period not to exceed 12 months.

B. Qualifications. A property owner may qualify for the Hardship Payment Program if they meet all of the following criteria:

3. The property owner is temporarily unable to make monthly payments due to catastrophic financial circumstances. These circumstances may include illness, loss of income or a temporary disability.

2. Applicants must complete a written request form and provide sufficient written documentation to support a determination that the applicant is experiencing catastrophic financial circumstances. Documentation may consist of records such as a lay-off-notice, proof of unemployment or other evidence of loss of income.

3. The Auditor shall review and approve or deny applications for individual payment plans under the Hardship Payment Program.

4. If the Auditor determines that a property owner is qualified to participate in the Program, the Auditor shall allow the qualified property owner to make a minimum monthly payment equal to the monthly interest accruing to the delinquent lien, plus the monthly billing charge. Interest shall be calculated at the prime interest rate set by the City's bank on December 31^st of the previous year plus 200 base points (2%) per annum. The recalculated interest rate shall be applied to each individual payment plan on the first billing date following December 31^st of each year.

5. The Auditor shall periodically review each individual payment plan to verify the qualifications of the participant.

6. At the conclusion of an individual payment plan, the Auditor shall bill any property owner who has complied with the individual payment plan, but has not paid the account in full, according to the Auditor’s standard billing procedures.

7. A payment for the specified amount in the Hardship Payment Plan Agreement (HPPA) must be received in the Auditor's Office with the signed HPPA.

D. If the property owner fails to make a monthly payment before the completion of the plan, the Auditor may place the property on the foreclosure list, unless the Auditor finds there is an additional or continuing emergency. In that event the Auditor may authorize a new plan or reinstate the existing plan.

If the Auditor declares a bonded lien payment contract void prior to the property being placed on the foreclosure list, the property owner and the Auditor may negotiate new installment payment arrangements. If the Auditor offers a new installment payment contract, the terms and conditions must protect the City’s financial condition and assure the repayment of associated municipal bonds. The Auditor shall set the interest rate on the negotiated contract at a rate greater than or equal to the interest rate of the original installment payment contract. The Auditor shall prepare a form of agreement for negotiated installment payment contracts.

A. The Auditor shall be responsible for preparing the proposed foreclosure list. No property shall be placed on the proposed foreclosure list unless:

2. It is a bonded lien which is at least one year past the installment due date.

3. The City has provided the property owner or their predecessor in interest at least two written delinquency notices within a three-month period prior to the sale.

B. The Auditor shall prioritize which delinquent liens to include on the proposed foreclosure list. Priority shall be given to properties that have the potential to significantly reduce the delinquency rate or help to solve a City public health, safety or welfare objective. Priority may also be given based on factors including, but not limited to, the total amount of delinquency; property owners with multiple delinquencies for one or more properties; or multiple nuisance abatement action by the City.

C. The Auditor may determine the number of properties to be placed on the proposed foreclosure list based on current City staffing resources, complexity of accounts, and time and resources necessary to complete timely processing of foreclosing the delinquent liens.

2. Submit a report to the Council that identifies the properties recommended for purchase by the City from the proposed foreclosure list. The report shall identify the property and the source of the funds to be used to purchase the property; and

3. Determine whether any properties on the proposed foreclosure list are also delinquent in the payment of property taxes. The Auditor shall identify those properties which are likely to be foreclosed upon by the County

prior to the City’s foreclosure sale and shall make a recommendation to the Council regarding whether any of these properties should be purchased and removed from the foreclosure list.

A. The Council shall decide which properties to include on the foreclosure list and which properties should be purchased by the City. The Council shall approve the foreclosure list by ordinance. The ordinance shall state the provisions for redemption of properties by the prior owners, as provided by state law or City ordinance. After the foreclosure list is approved by Council, the only payment option is to make payment in full.

B. The foreclosure list shall be transmitted to the Treasurer by the Council Clerk.

Upon Council approval, the City may purchase property on the foreclosure list before, during or after the sale subject to the following conditions:

A. Money for purchase has been transferred to the proper City fund for payment of the delinquent lien amount;

B. In the case of property purchased before the sale, any person having an interest in the property is given an opportunity to pay the lien in full including collection and sales costs, and thereby remove the property from the foreclosure list as provided by Section 5.30.150; and

C. Any person having an interest in the property may redeem the property as provided by Section 5.30.210.

A. The Treasurer shall record a notice of foreclosure sale for each property listed on the foreclosure list in the County records in which the property is located before ordering a foreclosure report and before giving notice as required by Section 5.30.140. The recorded notice shall contain the ordinance number approving the foreclosure list; the address and legal description of the property; the time, date and place of the sale; the types and amounts of liens; and, that the property will be sold unless the account is paid in full including all interest, penalties, collection costs and sales costs to date. The recorded notice shall also state a contact name, address and phone number for obtaining additional information from the City.

B. Any property which is an asset of a bankruptcy estate shall either be removed from the sale or the City Attorney shall be requested to first seek relief from stay in the Bankruptcy Court.

As provided below, the Treasurer shall provide notice to all persons known to have a recorded interest in the properties on the foreclosure list.

1. The Treasurer shall mail a notice of foreclosure sale to all persons known to have a recorded interest in the property and to all persons having recorded a request for copy of notice of sale. Notice shall be sent at least 60 days prior to the sale by registered or certified mail.

2. The mailed notice shall state that a foreclosure sale will be held and it shall specify the date, time and place. It shall contain the following information: the names of the owners of the property; the legal description of the property; the street address; the amount of the delinquent lien stating both the principal and interest due as well as any penalties and collection costs; the type of the delinquent account; and, the name of the Treasurer and contact information. The notice shall also state that there shall be an additional charge for sales costs to date.

1. The Treasurer shall have printed in a daily newspaper of general circulation a notice of foreclosure sale once a week for four successive weeks.

2. The notice shall contain the information required in Subsection 5.30.140 A.2.

3. A copy of the first of the four published newspaper notices shall be sent to the owner and to the occupant by registered or certified mail.

1. The Treasurer shall have notice of foreclosure sale posted on the property at least once, no less than four weeks before the sale.

2. The posted notice shall contain the information required in Subsection 5.30.140 A.2.

D. Other notice. Notice shall be given to the Internal Revenue Service by registered or certified mail, at least 25 days prior to the sale.

At any time prior to the foreclosure sale, a person with a recorded interest in the property may remove the property from the foreclosure list by paying in full the amount of the delinquent lien with penalties, interest, collection costs and sales costs incurred to date. If requested, notice that the property has been removed from the foreclosure sale shall be recorded in the County records in which the property is located.

A bidder purchases the property “as is.” The City will not provide an opportunity for on-site inspection of the land or buildings.

A. The Treasurer shall prepare rules governing the conduct of the foreclosure sale. The rules shall be available at least 60 days prior to the foreclosure sale.

C. Only bids in the amount of the sales price for a property are acceptable. In situations where there are two or more acceptable bids, the successful bidder shall be determined by lot. In the event there is more than one acceptable bid and the successful bidder fails to pay, sale of the property shall again be determined by lot. However, if there is only one remaining acceptable bid, the property will be sold to that bidder.

D. Property which is not sold may again be offered for sale. The steps in Sections 5.30.130 through 5.30.240 shall be followed.

5.30.180 Waste, Improvements to the Property and Nuisance Abatement Procedures.

A. The City shall not bear any responsibility or liability for damage or waste to the property or to any structures or fixtures during the redemption period. The purchaser shall assume all risk of such damage or waste.

B. Any improvements or maintenance to the property made by a purchaser during the redemption period shall be made under a contractual agreement with the owner. The contract shall specifically state the amount owing and the rate of interest, if any.

C. In the event the property becomes a public nuisance, the City may enforce any applicable nuisance abatement regulations. Nuisance abatement may result in additional assessments against the property, which may become the liability of the purchaser.

A. After a foreclosure sale, the Treasurer shall promptly deliver a certificate of sale to the purchaser. The certificate of sale embodies the right to own the property at the end of the redemption period. The holder of a certificate of sale has no ownership rights and no possessory interest in the property prior to the completion of the redemption period and holds the certificate of sale subject to the rights of all persons having an interest in the property to redeem it, the right of the City to place additional liens on the property and the right of another unit of government to foreclose upon the property. All liability remains with the persons having an interest in the property until the City issues a deed at the end of the redemption period.

B. The certificate of sale shall include the following information: a description of the delinquent account for which the property was sold; a description of the property; a statement of the amount for which it was sold; the redemption interest rate and the amount of the redemption penalty; the name of the purchaser; and, a statement that the property is being sold subject to the right of redemption within one year from the date of sale.

C. The Treasurer shall send to the property owner and all persons known to have a recorded interest in the property a notice of the sale by registered or certified mail, within 10 working days after the sale. The notice shall contain the following information: the name of the purchaser; the right of redemption; the date the redemption period expires; the redemption price; and, the basis for calculating interest and penalties during the redemption period.

D. It shall be the responsibility of the purchaser to maintain a current address on file with the Auditor.

A. The Treasurer shall return to the Auditor the foreclosure list with all collections and sales noted on it within three business days after the sale.

B. The Auditor shall enter the collections and foreclosure sales in the City lien docket. Thereafter, no transfer or assignment of any certificate of sale is valid unless such transfer or assignment is reported to the Auditor and recorded in the City lien docket.

A. Only persons having a recorded interest in the property, or their legal representative, may redeem the property within the redemption period. Purchasers have no redemption rights.

B. Property which has been sold at a foreclosure sale is not eligible for installment payments or a payment plan. Property may be redeemed only by payment in full. Redemption shall be subject to the payment to the Treasurer of the redemption price. The only acceptable form of payment shall be United States legal currency or cashier’s check.

C. The Treasurer shall issue a receipt to the person redeeming the property and shall report the redemption to the Auditor. Redemption discharges the property from the effect of the sale.

D. If redemption is made by a lien creditor, the amount paid for redemption shall thereafter be deemed a part of the judgment, decree, mortgage or tax lien and shall bear like interest and may be enforced and collected as a part thereof.

E. Upon receipt of the redemption price, the Treasurer shall issue a check for the sales price amount paid by the holder of the certificate of sale as shown on the lien docket plus any accrued redemption interest. The check shall be delivered to the address provided to the City by the purchaser or any transferee or assignee.

F. The interest charged during the redemption period shall be set by ordinance. The redemption interest rate shall be set at a level which attracts bidders. The penalty charged during the redemption period shall also be set by ordinance. The redemption penalty shall be set at a rate to encourage payment by delinquent property owners.

G. If a property is redeemed at any time during the redemption period, the redemption period automatically terminates.

A. Upon expiration of the redemption period, the Treasurer shall execute a deed conveying the foreclosed property. The deed conveys to the grantee the legal and equitable title in fee simple excepting only the liens of the City or of other persons or entities which were not included in the foreclosure sale or other liens as provided by state law. The deed, however, shall not guarantee free or clear title.

B. The deed shall contain the following information: a description of the property; the date of sale; a statement of the amount of the delinquent account for which the property was sold; that the account was unpaid at the time of sale; and, that no redemption has been made.

C. The grantee shall be entitled to immediate possession upon delivery of the deed.

Property subject to delinquent property taxes may be sold by the County at a sheriff’s sale. In the event the property is sold, the purchaser may lose all interest in the property. Any purchaser of property having delinquent property taxes may elect to pay the property taxes. There shall be no reimbursement from the City in the event of redemption by the property owner.

A. Any property purchased by the City from the foreclosure list may be sold as directed by the Council in the manner provided by Charter, Code or State law. Proceeds from the sale shall be used to reimburse the fund from which the property was purchased, any liens paid or other expenses incurred. Any remaining proceeds shall be placed in the assessment collection fund unless otherwise designated by Council.

B. In selling property as described in Subsection 5.30.240 A., except in situations where the purchaser agrees to accept a quit claim deed, the Treasurer shall purchase title insurance as a precondition of sale and shall pay the cost of the policy.

The purpose of this Chapter is to establish a process for the collection of delinquent assessment liens and for the foreclosure of liens on properties which have delinquent Safety Net Loan Program accounts. The emphasis of the collections program will be to maintain good communication with property owners. Persons having an interest in the property may bring the account current until the time of the sale. After the sale, any person redeeming the property must pay the account in full. This Chapter provides the authority for the City to recover its costs associated with the collection of delinquent accounts and establishes penalties and other incentives to encourage payment. Foreclosure is viewed as a last resort. It is the intent of the City to use foreclosure to protect the interests of the State of Oregon.

1. “Assessment lien” means a lien placed upon certain real property for its proportionate share of costs incurred in the construction of the sewer system or for the connection of the property to the sewer system.

2. “Collection costs” means the costs associated with the collection of the assessment such as billing and rebilling charges.

3. “Delinquent assessment lien” means an assessment installment payment which has not been paid within 30 days after the installment payment due date.

4. “Department of Environmental Quality” means the State of Oregon, Department of Environmental Quality.

5. “Foreclosure sale” means a legal process which allows the City to foreclose and to sell property to liquidate a delinquent lien.

6. “Foreclosure sale list” means a list of properties with delinquent assessments which the City will see at a foreclosure sale.

7. “Redemption period” means the one-year period during which a person with an interest in the property may redeem the property which has been sold at a foreclosure sale to satisfy a delinquent assessment.

8. “Redemption price” means the sales price plus interest and penalties.

9. “Sales costs” means costs associated with the sale including the cost of advertising, sale direct and indirect costs related to notification such as the cost of any reports required to determine the names of persons having an interest in the property or the status of the property, printing, postage, advertising, posting of the property, title insurance and staff salaries, benefits and overhead costs directly expended to complete the sale.

10. “Sale price” means the amount owning on the principle, interest, penalties, collection costs and sales costs.

11. “Sewer safety net participating property”: A property on which the assessment or connection charge has been funded by the City of Portland, Sewer Safety Net Loan Program.

A. The provisions of this Chapter apply to delinquent assessment liens on Sewer Safety Net participating properties. The provisions of this Chapter do not apply to delinquent bonded liens or delinquent open liens. The foreclosure procedures applicable to these types of liens are set forth in Chapter 5.30.

B. The City shall not be limited to the foreclosure process in this Chapter. The City may elect to use a Judicial Foreclosure process or to sell the property as provided in the Charter, City Code or state law.

A. The Auditor shall maintain the records related to Sewer Safety Net assessment liens, bill and collect lien accounts, administer the preforeclosure collection process, prepare a preforeclosure list, and transmit the preforeclosure list to the City’s Bureau of Environmental Quality and the Commissioners for informal review and prepare a final foreclosure list for review by the Council. The Auditor shall also renegotiate loans, reduce amount of liens, terminate foreclosure proceedings or eliminate liens as directed by the Department of Environmental Quality.

B. The Council shall review the final foreclosure list and adopt an ordinance which lists the properties subject to foreclosure and subject to purchase.

C. The Treasurer shall administer the foreclosure sale process, purchase property identified by the Department of Environmental Quality and Council for purchase by the City, administer the redemption process and execute deeds conveying the property sold. There shall be at least one sale held annually.

D. The Bureau of General Services shall manage, maintain, rent or market for sale properties purchased by the Treasurer for collection of delinquent assessments.

A. The Auditor shall establish a collections process and shall be authorized to:

1. Establish in writing, rules and procedures to carry out provisions of this Section. Maintain a record of the rules and procedures and make the rules available to the public.

2. Establish fees including a billing and rebilling fee to recover the cost of collecting the delinquent lien amount;

3. Establish penalties and increases in the interest rate to encourage early payment of delinquent lien accounts; and

4. Report delinquent lien accounts to a credit rating bureau to encourage payment if directed by the Department of Environmental Quality and the Council.

B. The Auditor will notify the Bureau of Environmental Services when an account becomes 60 days past due. The collection process shall begin after the account becomes 90 days past due. The Bureau of Environmental Services may delay the collection process up to 12 months if it notifies in writing to the Auditor and the Department of Environmental Quality. Such notification will include the account number, the principal balance, the past due amount, and the extenuating circumstances that would justify a delay in the collection process. The collections process at a minimum shall include the following steps:

1. The property owner and mortgage holder shall be notified of the delinquent assessment or connection charge for each of three months prior to the sale.

2. The notice shall state that if the account is not brought current, the property will be sold at a foreclosure sale.

3. The Department of Environmental Quality shall be given a copy of the foreclosure list at least three months before the sale.

C. A one-time penalty equal to one-half of one percent (.005) of the principal balance shall be added to the amount due at the date any assessment or installment payment becomes delinquent. The penalty accumulates with each installment payment until the lien is brought current or paid in full.

D. Interest shall be added to delinquent liens and shall be calculated daily based on the amount of the unpaid principal balance and the interest rate set by the installment contract.

E. The Auditor may waive delinquent interest, penalties and charges if a delay in receiving payment is caused by an oversight, omission or error by City staff.

F. The Auditor is authorized to void the installment payment provisions of a sewer safety net contract, as follows:

1. After a sewer safety net assessment becomes delinquent and prior to the Auditor placing the property on the foreclosure list, the Auditor may void the installment payment provisions and require the property owner to renegotiate new installment payment arrangements.

2. After a sewer safety net assessment becomes delinquent and the Auditor has placed the property on the foreclosure list, the Auditor shall void the installment payment provisions and require the property owner to renegotiate new installment payment arrangements.

(Added by Ordinance No. 167655, May 11, 1994.) When the Auditor declares the installment payment provisions of a sewer safety net contract void, the property owner may renegotiate new provisions to pay in installments the unbilled principal portion of the sewer safety net account. The Auditor shall offer new installment contract terms and conditions which protect the City’s financial condition and assure the repayment of the sewer safety net account. The Auditor shall set the interest rate on the renegotiated contract at a rate greater than or equal to the interest rate of the original installment payment contract. The renegotiated installment contract shall be in the same form as required by Chapter 17.12 of this Code for assessment installment payment contracts. The property owner or other interested party shall pay all delinquent assessment installments before the City will accept the renegotiated installment payment contract.

A. At the conclusion of the collection process, the Auditor shall prepare a list of delinquent lien accounts. No property shall be placed on the list unless the payment is at least one year past due. There shall be a sale at least once a year.

B. The Auditor shall determine whether any properties on the delinquent accounts list are also delinquent in the payment of property taxes. The Auditor shall identify those properties which are likely to be foreclosed upon by the County prior to the City’s foreclosure sale .

C. The Auditor shall review the list of properties to be foreclosed upon by the County and shall make a recommendation to the Bureau of Environmental Services and Department of Environmental Quality regarding any properties which should be purchased. The determination of whether to pay the taxes shall be based on whether the total amount of the liens and taxes on the property is less than the market value of the property or, if the property has been sold, whether the sale price received by the County was enough to pay the amount of the City liens upon resale. The Department of Environmental Quality by written letter shall direct the Treasurer on which properties shall be purchased by the City.

D. The Treasurer shall remove from the County foreclosure list and notify the Auditor to add the total amount paid to the County to the lien against the property. The Treasurer shall pay the County from funds designated and provided by the Department of Environmental Quality.

A. All delinquent properties satisfying the requirements of this Chapter shall be placed on the preforeclosure list, unless a delay in the collections process has been authorized pursuant to Section 5.31.025 B above.

B. No property on the preforeclosure list shall be placed on the final foreclosure list until the following steps have been taken:

1. The current property owners have been determined. The record shall state how the property ownership status was determined.

2. The property owner has received at least two written delinquency notices within a three-month period prior to the sale. The notice shall be sent certified mail, return receipt requested and by first class mail. The notice shall identify the property, the amount owing (principal, interest, penalties, and collection costs) and state the costs of the sale that will be charged to the account. In addition, the notice shall identify the type of the delinquent lien account and the fact that the property will be placed on the foreclosure list unless the account is brought current. The record shall contain a copy of the notice and the returned receipts.

A. The Auditor shall transmit a copy of the final foreclosure list to each Commissioner and to the Department of Environmental Quality for review. Any comments shall be transmitted to the Auditor within 15 working days from the date the Auditor sends the final foreclosure list to the Commissioners and Department.

1. Review the final foreclosure list and shall make a report to the Auditor regarding whether each step in the preparation of the final foreclosure list, as set forth in City Code 5.31.025 B and 5.31.035 B has been applied correctly.

2. Review the list of properties which have been on the final foreclosure list but for which no bids were received and make a recommendation on each property to the Department of Environmental Quality regarding how the property should be handled in order to liquidate the lien; and

3. Transmit to the Auditor the instructions from the Department of Environmental Quality regarding how to handle each property which has been placed on the final foreclosure list but not sold.

1. Prepare a report to the Council which identifies properties which have been deleted from the list based on the recommendations of the Commissioners;

2. Transmit to the Council a list of properties which have twice been on final foreclosure lists and which have not sold together with the directions from the Department of Environmental Quality and Commissioners regarding how each property shall be handled; and

3. Prepare a revised final foreclosure list for submission to the Council for Council action.

A. The Council shall review the final foreclosure list and reports submitted by the Auditor to determine:

1. Whether each step in the collection process as set forth in City Code 5.31.025 B and 5.31.035 B has been applied correctly; and

2. The Council shall act by ordinance and shall identify for the Auditor and Treasurer which properties should be placed on the final foreclosure list and as directed by the Department of Environmental Quality and the Council which properties on the list should be purchased by the City in the event no bids are received on those properties, and the source of the funds to be used to purchase the property.

B. The final foreclosure list shall be transmitted to the Treasurer by the Council Clerk. After list is submitted to the Treasurer, the only payment option is to bring the account current.

C. The Treasurer shall record a Notice of Foreclosure and Sale for each property listed on the final foreclosure list in the County records in which the property is located before ordering a foreclosure report and before giving notice as required by City Code 5.30.065. The notice shall contain the ordinance number adopting the final foreclosure list; the address and legal description of the property, the time, date and place of the sale, the types and amounts of assessments and that the property will be sold unless the account is brought current and all interest, penalties, collection costs and sales costs to date are paid. It shall also state the name of the person and address and phone number where additional information is available.

D. The Treasurer shall determine the names and addresses of all persons having an interest in the sale including lien holders and whether the property is part of a bankruptcy estate. This may be done by purchasing a report from a title company.

E. Any property which is part of a bankruptcy estate shall be removed from the sale or the City Attorney should be requested to seek relief from the stay from the Bankruptcy Court.

1. The Treasurer shall mail a “Notice of Foreclosure” to all persons having an interest in the property and to all persons requesting notice. It shall be sent at least 60 days prior to the sale by certified mail, return receipt requested.

2. The notice shall state that a foreclosure sale will be held and it shall specify the date, time and place. It shall contain the following information: the names of the owners of the property, the legal description of the property, the street address, the amount of the delinquent account stating both the principal and interest due as well as any penalties and collection charges, the type of the delinquent account, and the name of the Treasurer. It shall also state that there shall be an additional charge.

1. The Treasurer shall have printed in a daily newspaper of general circulation the notice of sale once a week for four successive weeks.

3. A copy of the first of the four published newspaper notices shall be sent to the owner and to the occupant by certified mail, return receipt requested and a copy of the notice shall be retained in the file.

1. The Treasurer shall have notice posted on the property at least once, no less than four weeks before the sale. Proof of posting shall be maintained in the property foreclosure file.

3. The Treasurer shall prepare an affidavit of posting and a copy of the affidavit shall be retained in the file.

1. Notice shall be given to the Internal Revenue Service by certified mail, return receipt requested, at least 25 days prior to the sale.

A. The City may purchase property on the final foreclosure list for City properties before, during or after the sale subject to the following conditions:

1. The Department of Environmental Quality and the Council have directed the purchase of the property in the ordinance adopted under City Code 5.31.050 B, and the money has been transferred to the proper assessment fund;

2. In the case of property purchased before the sale, any person having an interest in the property is given an opportunity to bring the account current and pay the collection and sales costs, and thereby remove the property from the list as provided by City Code 5.31.065 A; and

3. Any person having an interest in the property may redeem the property as provided by City Code 5.31.085.

A. A person with an interest in the property may remove the property from the foreclosure list by paying the amount of the delinquent assessment with penalties, interest, collection costs and sales costs incurred to date any time prior to the sale. In addition, in the case of installment payments, the Auditor shall void the installment provision of the sewer safety net contracts and require the property owner or interested person to renegotiate new installment payment arrangements as provided the this Chapter. Payment plans as provided by PCC 5.30.035 may not be initiated as a means to bring the account current. If requested, notice that the property has been removed from the sale, shall be recorded in the County records in which the property is located.

B. A bidder purchases the property “as is.” There shall be no opportunity for an on site inspection of the land or buildings unless the bidder has permission from the owner.

A. The Treasurer shall prepare rules governing the conduct of the sale. The rules shall be available at least 60 days prior to the sale.

B. Each piece of property shall be sold separately . The sales price shall be the amount owing on the principle, interest, penalties, collections costs and sales.

C. The interest charged during the redemption period shall be set by ordinance. The interest rate shall be set at a level which attracts bidders, but shall be equal to or greater than the interest rate established for the Sewer Safety Net loans.

D. The penalty charged during the redemption period shall be set by ordinance. It shall be set at a rate to encourage payment by delinquent property owners.

E. In situations where there are two or more bids, the successful bidder shall be determined by lot.

F. Property which is not sold may again be offered for sale. The steps in City Code 5.31.050 (D) through City Code 5.31.105 shall be followed.

G. In the event there is more than one bidder and the successful bidder fails to pay, the property shall be sold to the other bidder or in the event there were more than two bidders, the successful bidder shall be determined by lot.

A. The Treasurer shall immediately deliver a certificate of sale to the purchaser. The certificate of sale is a right to own the property at the end of the redemption period. The holder of a certificate of sale has no ownership rights and no possessory interest in the property prior to the completion of the redemption period and holds the certificate of sale subject to the rights of all persons having an interest in the property to redeem it, the City to place additional liens on the property and the right of the right of another unit of government to foreclose upon the property. All liability remains with the persons having an interest in the property until a deed is given to the purchaser.

B. The certificate of sale shall include the following information: a description of the delinquent account for which the property was sold, a description of the property, a statement of the amount for which it was sold, the interest rate and the amount of the penalty, the name of the purchaser, and a statement that the property is being sold subject to the right of redemption within one year from the date of sale.

C. The Treasurer shall send to the property owner and all persons known to have an interest in the property a “Notice of the Sale” by certified mail, return receipt requested and by first class mail, within 10 working days after the sale. Notice shall be sent to any persons known to have acquired an interest in the property since initial notice was given unless a notice was recorded. The notice shall contain the following information: the name of the purchaser, the right of redemption, the date the redemption period expires, the redemption price, and the basis for calculating interest and penalties during the redemption period.

D. It shall be the responsibility of the purchaser to keep the purchaser’s current address on file with the Treasurer.

A. The Treasurer shall return to the Auditor the final foreclosure list with all collections and sales noted on it within three business days after the sale.

B. The Auditor shall make the proper entries of the collections and sales in the appropriate lien docket.

A. Any person having an interest in the property, or their legal representative, may redeem the property within one year from the date of sale. The one-year period is computed as follows. The date of the sale shall not be counted. The period shall

begin to run the day after the sale. The last day of the one-year period shall be the 365th day at 5 p.m. on the next working day. Purchasers have no redemption rights.

B. Redemption shall be subject to the payment to the Treasurer of the amount of the property sale price , the interest to date and the penalty to date. Property which has been sold at a foreclosure sale is not eligible for installment payments. Property may be redeemed only by payment in full.

C. The Treasurer shall issue a receipt to the person redeeming the property and shall report the redemption to the Auditor. Redemption discharges the property from the effect of the sale.

E. Upon deposit of the sum in redemption, the Treasurer shall issue a check or warrant for the amount paid to the holder of the certificate of sale shown o the lien docket for the amount of the delinquent account, costs and interest.

A. Upon expiration of the redemption period, the Treasurer shall execute a deed conveying the property sold. The deed conveys to the grantee the legal and equitable title in fee simple.

B. The deed shall contain the following information: a description of the property, the date of sale, a statement of the amount of the delinquent account for which the property was sold, that the account was unpaid at the time of sale and that no redemption has been made.

C. The deed conveys title in fee simple excepting only for the liens of the City which were not included in the foreclosure sale or other liens as provided by state law. The deed, however, does not guarantee clear title.

D. The grantee shall be entitled to immediate possession upon delivery of the deed.

5.31.095 Waste, Improvements to the Property, Nuisance Abatement Procedures.

A. The City shall not be responsible for damage to the property during the redemption period. The purchaser assumes all risk.

B. Any improvements or maintenance to the property made by a purchaser during the redemption period shall be made by a contractual agreement with the owner. The contract shall specifically state the amount owing and the rate of interest, if any.

C. In the event the property becomes a public nuisance, the City reserves the right to enforce its nuisance abatement code provisions which may result in additional assessments against the property and which may become the liability of the purchaser.

A. Property subject to delinquent property taxes may be sold by the County at a sheriff’s sale. In the event the property is sold, the purchaser may lose all interest in the property. Any purchaser of property having delinquent property taxes may elect to pay the property taxes. There shall be no reimbursement from the City in the event of redemption by the property owner.

A. Any property purchases by the City from the foreclosure list may be sold as directed by the Council by the Bureau of General Services in the manner provided by the Charter or state law. The proceeds from the sale shall be used to reimburse the fund from which the property was purchased, any liens paid or other expenses incurred. Any remaining proceeds shall be placed in the Assessment Referral Account unless otherwise designated by Council.

B. Except in situations where the purchaser agrees to accept a quit claim deed, the Treasurer shall purchase title insurance as a precondition of sale and shall pay the cost of the policy.

C. In cases where the title report shows a defect in title, the defect shall be referred to the City Attorney. The City Attorney shall take the steps necessary to clear the title.

5.33.070 Purchasing Goods, Services and Public Improvements from City Employees.

5.33.730 Protests and Judicial Review of Solicitation Documents and the Procurement Process.

A. The following definitions apply to the City of Portland’s Purchasing Authority, Policies and Rules as contained in this Chapter.

1. Addendum or Addenda: Additions or deletions to, material changes in, or general interest explanations of the City’s Solicitation Documents.

2. Advantageous: In the City’s best interests, as assessed according to the judgment of the City.

3. Affected Person/Offeror: A Person or Offeror whose ability to participate in a Procurement or Public Improvement Contract is adversely affected by the City.

4. Authorized Representative: The owner of a sole proprietorship, a partner in a firm or partnership, or, a person authorized to bind a corporation’s board of directors.

5. Award: The decision of the City to enter into a Contract with an Offeror.

7. Bid or Proposal Bond/Bid or Proposal Security/Offer Security: A means of securing execution of an Awarded Contract.

8. Bidder: An Offeror who submits a Bid in response to the City’s Invitation to Bid.

10. Closing: The date and time announced in the City’s Solicitation Document as the deadline for submitting Offers.

11. Competitive Bidding: A selection process that involves an advertised public notice, issuance of a Written Solicitation Document inviting Persons to submit Written, signed, and sealed Bids that are received in the Bureau of Purchases and publicly opened at a designated time and place.

12. Competitive Negotiation: A method of Contracting in which Proposal evaluation and Contract Award result from an open and competitive procedure, typically through the Request for Proposal process, in which evaluation criteria in addition to price are considered in Contractor selection.

13. Competitive Range: The number of Proposers the City will conduct discussions or negotiate if the City intends to conduct discussions or negotiations in accordance with Chapter 5.33 or Chapter 5.34.

14. Construction Manager/General Contractor (CM/GC): An alternative contracting method, or a Person selected pursuant to that method, to perform a Public Improvement project. The method typically requires a Contractor to undertake design phase involvement, constructability reviews, value engineering, scheduling, estimating and acquiring subcontracting services, establishing a GMP to complete the Contract Work, acting as General Contractor, coordinating and managing the building process, and providing General Contractor expertise.

16. Contract Amount: The total of the Awarded Bid or Proposal amount, including any approved alternates. The “original” Contract Amount is, depending on the context, the maximum amount that the City will pay for work performed pursuant to the Contract or an estimated amount when the amount is based on unit prices. The “final” Contract Amount is the amount that the City actually pays the Contractor after execution of change orders, Contract amendments, or variations in unit prices, which cause the original Contract price to increase or decrease.

17. Contract Execution: Contract Execution occurs when the Contract is signed by any mark, word, or symbol, in ink, by an Authorized Representative of an Offeror and the City.

19. Cost Estimate: The City’s most recent pre-Bid, good faith assessment of anticipated Contract costs, consisting of either the estimate of an architect, engineer or other qualified professional, or confidential cost calculation worksheets, where available, or formal planning or budgetary documents.

20. Days: Calendar days, including weekdays, weekends and holidays, beginning at midnight and ending at midnight twenty-four hours later, unless otherwise specified by these rules or the Solicitation Document.

21. Descriptive Literature: Informational materials concerning available products or services submitted by Offerors in response to the City’s Solicitation Document.

22. Electronic: Any means of transmission of information by Electronic device, including but not limited to Electronic mail or Facsimile. A Facsimile or fax is a document that has been transmitted to the City over telephone lines and received by the City in a hard copy form by a device commonly known as a Facsimile machine.

23. Electronic Advertisement: A notice of the City’s request for Offers, qualifications or information, or a request for price quotations, available over the Internet by:

b. the City’s Electronic Procurement System. An Electronic Advertisement may include a Solicitation Document.

24. Electronic Offer: A response to the City’s request for Offers or request for price quotations submitted to the City by email or through the City’s Electronic Procurement System.

25. Electronic Procurement System: An information system that Persons may access through the Internet or that Persons may otherwise remotely access through a computer, that enables the City to post Electronic Advertisements, receive Electronic Offers, and conduct other activities related to a Procurement.

b. create a substantial risk of loss, damage or interruption of services or a substantial threat to property, public health, welfare or safety; and

27. Equal Employment Opportunity (EEO): A certification program administered by the City, Certification by Contractors is required for in order to obtain most City Contracts as required by PCC Chapter 3.100.

28. Facsimile: A document that has been transmitted to and received by the City in a format that is capable of being received by a device commonly known as a facsimile machine. A facsimile machine allows hard copy documents to be sent over telephone lines and be printed in another location.

29. Goods and services/Goods or Services: Supplies, equipment, materials and services other than personal services designated under ORS 279A.055 or Chapter 5.68 and any personal property, including tangible and intellectual property and rights and licenses in relation thereto, that the City or other contracting agency is authorized by law to procure. “Goods and Services” or “Goods or Services” include combinations of any of the items identified in this paragraph.

30. Invitation to Bid (ITB): A Solicitation Document calling for Bids.

31. Life Cycle Costing: A determination of the cost of a product for its estimated useful life, including without limitation acquisition costs, operation and maintenance costs, and disposal.

36. Opening: The date, time and place announced in the Solicitation Document for the public Opening of Written, sealed Offers.

38. Person: An individual, corporation, business trust, estate, partnership, limited liability company, association, joint venture, governmental agency, public corporation or any other legal or commercial entity.

39. Prequalification: Depending on the context, either the process followed by the City to determine the qualifications of an Offeror or the process to determine the suitability of particular goods.

40. Price Agreement: A Public Contract for the Procurement of Goods or Services at a set price with

b. An initial order or minimum purchase combined with a continuing Contractor obligation to provide Goods or Services, in which the City or other contracting agency does not guarantee a minimum or maximum additional purchase.

41. Procurement: The act of purchasing, leasing, renting or otherwise acquiring Goods or Services. Procurement includes each function and procedure undertaken or required to be undertaken by the City to enter into a Public Contract, administer a Public Contract and obtain the performance of a Public Contract under the State Public Contracting Code.

42. Product Sample: A representative specimen of the item offered by the Offeror in response to the Solicitation Document. Unless otherwise provided in the Solicitation Document, the Product Sample shall be the exact product or a representative portion of that product offered by the Offeror.

44. Proposer: A Person who submits a Proposal in response to the City’s Request for Proposals.

45. Public Contract: A sale or other disposal, or a purchase, lease, rental or other acquisition, by the City of personal property, services, including personal services, Public Improvements, public works, minor alterations, or ordinary repair or maintenance necessary to preserve a Public Improvement, but does not include “grants.”

46. Public Improvement: A project for construction, reconstruction or major renovation on real property by or for the City. Public Improvements do not include 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 or Emergency work, minor alteration, ordinary repair or maintenance necessary to preserve a Public Improvement.

47. Purchasing Agent: The individual designated by the Portland City Council to act as the City’s Purchasing Agent or the individual to whom the Purchasing Agent has delegated the powers of the Purchasing Agent.

48. Qualified Rehabilitation Facility (QRF): A nonprofit community rehabilitation program or a vocational service provider whose purpose is to assist and encourage disabled individuals and which:

a. During the fiscal year employs disabled individuals for not less than 75 percent of the hours of direct labor required for the manufacture or provision of its products or services.

b. Shall be either a community rehabilitation program certified through the Oregon Vocational Rehabilitation Division or a vocational service provider certified through the Oregon Mental Health Division of the Department of Human Resources;

d. Shall be currently certified by the Oregon Department of Administrative Services (ODAS) as a QRF; i.e., is listed as a current certificate holder in the annual QRF Directory, published by ODAS.

49. Request for Proposals (RFP): All documents used for soliciting Proposals. In accordance with these rules, or when permitted by PCC Chapter 5.34.

51. Resident Bidder: A Bidder that has paid unemployment taxes or income taxes in this state during the 12 calendar months immediately preceding submission of the Bid, has a business address in this state and has stated in the Bid whether the Bidder is a “Resident Bidder” as this is defined.

52. Responsible Offeror, Bidder or Proposer: A Person that has submitted an Offer, Bid or Proposal and that meets the standards set forth in PCC Section 5.33.500 and has not been debarred, disqualified and who has not failed to prequalify when Prequalification is required by the Solicitation Document.

53. Responsive Offer, Bid or Proposal: An Offer, Bid or Proposal that substantially complies in all material respects with applicable Solicitation procedures and requirements and the Solicitation Document.

54. Scope: The range and attributes of the Goods or Services described in the applicable Procurement document.

55. Solicitation: A request by the City for prospective Contractors to submit Offers.

56. Solicitation Document: An Invitation to Bid, Request for Proposals or other document issued to invite Offers from prospective Contractors pursuant to ORS Chapter 279B or 279C. All documents referenced by the Solicitation Document are included in, and part of, the Solicitation Document.

57. Specification: A description of the physical or functional characteristics, or of the nature of a supply, service or construction item, including any requirement for inspecting, testing or preparing a supply, service or construction item for delivery and quantities or qualities of materials to be furnished under a Contract. Specifications generally will state the result to be obtained and may, on occasion, describe the method and manner of doing the Work to be performed.

58. Subcontractor: A Person, other than the Contractor’s employee, hired by the Contractor to perform a portion of the Work required by the Contract.

59. Work: The furnishing of all materials, equipment, labor, and incidentals necessary to successfully complete any individual item in a Contract or, in context, the entire Contract and the timely successful completion of all duties and obligations imposed by the Contract.

60. Writing/Written: Conventional paper documents, whether handwritten, typewritten or printed, in contrast to spoken words. It also includes Electronic transmissions or Facsimile documents when required by applicable law or permitted by a Solicitation Document or Contract.

A. Pursuant to ORS 279A.055, the City Council is designated as the Local Contract Review Board for the City. The City Council shall exercise all the powers and duties conferred upon it by State law, except to the extent that such powers and duties have been delegated by these rules, or by a separate ordinance,

to others. In order to carry out its powers and duties, the City of Portland’s Purchasing Authority, Policies and Rules, PCC Chapter 5.33, and PCC Chapter 5.34 are hereby adopted by City Council.

B. The procedural rules of the City Council sitting as the Local Contract Review Board are the same as those regulating City Council as provided by PCC Chapter 3.02.

C. The Attorney General Model Public Contracting Rules do not apply to the City’s Procurement of goods, services, and certain construction services. Instead, the rules contained in PCC Chapter 5.33 apply to those Procurements. Similarly, the Attorney General Model Public Contracting rules for Construction do not apply. Instead the Rules contained in PCC Chapter 5.34 apply to those Public Improvements and construction services. It is the intent of these rules to permit the City to act to the full extent permitted by State law. To the extent that the rules adopted in PCC Chapters 5.33 and 5.34 appear to give the City less authority than State law, then State law shall prevail and the City may act to the full extent permitted by State law.

D. The City Council reserves to itself the authority to authorize Contract amendments in excess of 25% for Contracts whose original Contract Amount was $500,000 or more or whose total Contract price after an amendment would exceed $500,000.

E. The City Council shall authorize all intergovernmental agreements by ordinance pursuant to ORS Chapter 190.

A. PCC Chapter 5.33 is applicable to the purchase of Goods and Services, but is not applicable to the following:

1. Contracts or agreements to which the State Purchasing Code, ORS Chapters 279A, 279B and 279C, does not apply;

2. Contracts, intergovernmental and interstate agreements executed pursuant to ORS Chapter 190 between the City and other public contracting agencies;

4. Contracts pursuant to 10 U.S.C. § 381 (relating to law enforcement equipment suitable for counter-drug activities through the Department of Defense), the Electronic Government Act of 2002 (relating to automated data processing equipment, including firmware, software, supplies, support equipment, and services from federal supply schedules), or other federal law that the City Council determines are similar to those Acts in effectuating or promoting transfers of property to the City;

5. Contracts, agreements or other documents entered into, issued or established in connection with:

a. The incurring of debt by a public body, including but not limited to the issuance of bonds, certificates of participation and other debt repayment obligations, and any associated Contracts, agreements or other documents, regardless of whether the obligations that the Contracts, agreements or other documents establish are general, special or limited;

b. The making of program loans and similar extensions or advances of funds, aid or assistance by a public body to a public or private body for the purpose of carrying out, promoting or sustaining activities or programs authorized by law; or

c. The investment of funds by a public body as authorized by law, and other financial transactions of a public body that by their character cannot practically be established under the competitive Contractor selection procedures of PCC Sections 5.33.100 through 5.33.225;

6. Professional, technical and expert Contracts governed by PCC Chapter 5.68, and any other Contract specifically designated as a Personal Service Contract by the City Council;

(1) the City receives moneys, property or other assistance, including, but not limited to, federal assistance that is characterized by federal law or regulations, loans, loan guarantees, credit enhancements, gifts, bequests, commodities, or other assets;

(2) The assistance received by the City is from a grantor for the purpose of supporting or stimulating a program or activity of the City; and

(3) No substantial involvement by the grantor is anticipated in the program or activity other than involvements associated with monitoring compliance with grant conditions; or

(1) The City provides moneys, property or other assistance, including by not limited to federal assistance that is characterized as a grant by federal law or regulations, loans, loan guarantees, credit enhancements, gifts, bequests, commodities or other assets;

(2) The assistance is provided to a recipient for the purpose of supporting or stimulating a program or activity of the recipient; and

(3) No substantial involvement by the City is anticipated in the program or activity of the recipient other than involvement associated with monitoring compliance with the grant conditions.

9. Sole source expenditures when rates are set by law or ordinance for purposes of these rules concerning source selection;

10. Revenue Generating Contracts: Contracts whose primary purpose is generating revenue and are typically Awarded to the Offeror proposing the most Advantageous or highest monetary Offer to the City, or both, except to the extent of the Purchasing Agent’s authority as stated in PCC Section 5.33.040. The City Council may designate a particular Contract as a revenue-generating Contract;

11. Contracts for Sale of Advertising in City Publications. The right to advertise in City publications may be sold without Competitive Bidding. The City may utilize this exclusion when it publishes material and wants to recoup part of the cost by selling advertising to be placed in that publication. The revenue generated from the sale of advertising shall be applied to the cost of the publication;

12. Contracts for Public Improvements, which are governed by PCC Chapter 5.34.

A. For Contracts covered by PCC Chapters 5.33 and 5.34, and for revenue producing Contracts, the Purchasing Agent is authorized to:

1. Advertise for Bids or Proposals for Goods and Services without specific authorization from City Council, when the proposed purchase is included within the current fiscal year budget.

2. Award and execute Contracts for the purchase or lease of Goods and Services, and revenue producing services, without specific authorization by ordinance of City Council whenever the Contract Amount is $500,000 or less.

3. Award and execute Price Agreements for the purchase or lease of Goods and Services, including revenue producing services, if the yearly estimated cost to the City, or the yearly estimated revenue or value is $500,000 or less.

4. Recommend the Award of a Contract for Goods and Services, including revenue producing services by a report to City Council for Contracts in excess of $500,000. If the City Council adopts the recommendation, it shall approve the Award by ordinance.

5. Authorize and execute Contract amendments for Contracts for Goods and Services that were originally executed in accordance with PCC Chapters 5.33 and 5.34 as follows:

b. Contract amendments exceeding 25% of the original Contract Amount, provided that the amended Contract Amount does not exceed $500,000 and the director of the bureau in whose behalf of the Contract was issued concurs.

c. Contract amendments whenever an ordinance approved by the City Council grants additional authority to the Purchasing Agent beyond that stated in these rules.

6. Authorize final payment for a Contract for Goods and Services after confirming that all Work is completed and accepted by the City, as follows:

a. Whenever the final Contract Amount does not exceed 25% of the original Contract Amount; or

b. Whenever the final Contract Amount exceeds 25% of the original Contract Amount, provided that the final Contract Amount is less than $500,000 and the Director of the Bureau on whose behalf the Contract was issued concurs.

7. Adopt forms, procedures, and administrative rules for all City purchases of Goods and Services regardless of amount. The City shall use the forms, procedures and administrative rules unless they conflict with the City Code.

8. Establish a procedure providing appropriate financial control over the authorization provided by PCC Sections 5.33.055 and 5.33.060.

9. Revoke or place conditions on the authority of appropriation unit managers, directors and officers to issue limited purchase orders obligating the City for purchase of materials or services not to exceed $5,000, in the event of violations of these rules.

10. Perform such other duties as directed by the Portland City Code, City Council or the Commissioner-in-Charge of the Bureau of Purchases.

11. Delegate the Purchasing Agent’s authority under this Chapter in accordance with City practices.

12. Resolve protests of Contract Award decisions and other matters as required by City Code.

B. The Purchasing Agent is responsible for and shall make all purchases in accordance with State law, City Charter, and the City of Portland’s Purchasing Authority, Policies and Rules, PCC Chapter 5.33 and PCC Chapter 5.34.

C. The Purchasing Agent may execute Intergovernmental Agreements only with specific authorization by City Council.

A. The Director of Portland Parks and Recreation is authorized to execute a Contract for concessions in the parks of the City for the sale of refreshments and notions and for the performance of public service, upon such terms and conditions, and using evaluation criteria as the Director of Portland Parks and Recreation may deem to be in the public interest.

B. When the Purchasing Agent advertises for Bids or Proposals, and the Parks Director believes there is no acceptable Bid or Proposal received for a concession, a concession Contract may be granted to any entity upon such terms and conditions, including terms and conditions that are different from those advertised, as the Director of Portland Parks and Recreation deems to be in the best interest of the City. The Director of Portland Parks and Recreation may renew any concession Contract or concession permit upon request of the concessionaire without calling for Bids for a total term not to exceed the five (5) year limitation imposed by City Charter Section 2-105(a)(3).

C. Concessions at the City’s golf courses may be Awarded in the following manner: The Purchasing Agent shall advertise for Bids or Proposals for golf concessions Contracts based on evaluation criteria authorized by the Director of Portland Parks and Recreation. A selection advisory committee appointed by the Director of Portland Parks and Recreation shall review all Offers. The selection advisory committee shall screen qualifications and Proposals, and shall recommend the most Advantageous Bid or Proposal to the Director of Portland Parks and Recreation. The advisory committee may reserve the right to interview prospective concessionaires after submission of Offers.

D. The Director of Portland Parks and Recreation is authorized to execute Contracts for golf concessions for food service operation, merchandise sales, cart rentals, golf instruction and other functions normal to clubhouse operations and for performance of public services, for a period not to exceed five (5) years, at the golf courses owned by the City, upon such terms and conditions as the Director of Portland Parks and Recreation deems to be in the best interest of the City, subject to approval by the City Council.

E. Renewal of any golf concession Contract upon request of the concessionaire and upon the recommendation of the Director of Portland Parks and Recreation may be authorized by the City Council without calling for new Bids or Proposals, for a term not to exceed the five year limitation imposed by City Charter Section 2-105(a)(3).

A. Appropriation unit managers are authorized to obligate the City for purchases of Goods and Services for use by those managers in an amount not to exceed $5,000 for a single transaction as specified in PCC Section 5.33.180. Amendments to those Contracts shall be authorized only by the Purchasing Agent in advance of any additional Procurement of Goods and Services.

B. Purchases under $5,000 shall be made by using a credit card authorized by the Bureau of Purchases known as the “Procurement” (“P”) card, or by way of a document known as a Limited Purchase Order.

C. State law prohibits Procurements from being artificially divided or fragmented so as to constitute Procurements under $5,000.

A. Execute Contracts to the same extent as appropriation unit managers as provided in PCC Section 5.33.055;

B. Execute Contract amendments for Goods and Services Contracts covered by this Chapter:

1. Up to 25% of the original Contract Amount, regardless of the original Contract Amount;

2. More than 25% of the original Contract Amount, provided that the amended Contract Amount does not exceed $500,000 and the Purchasing Agent concurs.

C. Execute Contracts whenever an ordinance approved by the City Council grants additional authority to a Bureau Director beyond that stated in these rules.

D. The authority granted by this section regarding amendments is conditioned on the existence of an original valid Contract between the parties that was executed in conformance with City Code and State law.

5.33.070 Purchasing Goods, Services and Public Improvements from City Employees.

A. Purchasing From City Employees. The Purchasing Agent shall not make any purchase of Goods and Services from any City employee, or any business with which a City employee is associated, except as follows:

3. When approved in Writing by the Mayor, or the person performing the Mayor’s duties, under those Chapters.

B. “Business with which a City employee is associated” means any business in which the City employee is a director, officer, owner or employee, or any corporation in which the City employee owns or has owned 10 percent or more of any class of stock at any point in the preceding calendar year.

C. In any situation in which the Purchasing Agent believes that a purchase would cause an appearance of impropriety, regardless of whether the purchase is authorized by this or any other code provision, the Purchasing Agent may forward the proposed purchase to Council for approval.

A. Pursuant to ORS 279A.100, the City may limit competition on Public Contracts for Goods and Services, or on other Public Contracts with an estimated cost of $50,000 or less to carry out affirmative action policies, in accordance with policies and procedures established by the City.

B. Pursuant to ORS 279A.105, the City may require a Contractor to Subcontract some part of a Contract to, or to obtain materials to be used in performing the Contract from:

1. A business enterprise that is certified under ORS 200.055 as an emerging small business; or

b. Is located in or draws its workforce from economically distressed areas, as designated by the Oregon Economic and Community Development Department (OECDD).

C. A Subcontractor certified under ORS 200.055 as an emerging small business is located in or draws its workforce from economically distressed areas if:

1. Its principal place of business is located in an area designated as economically distressed by the OECDD pursuant to administrative rules adopted by the OECDD; or

2. The Contractor certifies in Writing to the City that a substantial number of the Subcontractor’s employees or Subcontractors that will manufacture the goods or complete the services under the Contract reside in an area designated as economically distressed by the OECDD pursuant to administrative rules adopted by OECDD. For the purposes of making the foregoing determination, the City shall determine in each particular instance what proportion of a Contractor’s Subcontractor’s employees or Subcontractors constitute a substantial number.

3. The City shall include in each Solicitation Document a requirement that Offerors certify in their Offers in a form prescribed by the City, that the Offeror has not and will not discriminate against a Subcontractor in the Awarding of a subcontract because the Subcontractor is a minority, women or emerging small business enterprise certified under ORS 200.055.

D. The City may disqualify a Person from consideration of Award of the City’s Contracts under ORS 200.065(5) or suspend a Person’s right to be on or participate in any Public Contract pursuant to ORS 200.075(1) after providing the Person with notice and a reasonable opportunity to be heard in accordance with these rules.

1. "Alternative Environmentally Preferable Paper" is paper with environmental attributes beyond those of the U.S. Environmental Protection Agency's (EPA) Comprehensive Procurement Guidelines (CPG). These attributes include paper that is unbleached or is bleached without the use of chlorine compounds, goes beyond the EPA CPG post-consumer recycled content standard, is not derived from genetically modified organisms, or is made with fibers that come from certified, well managed forests, agricultural residues, sustainably-produced tree-free crops, or recycled non-tree fibers.

2. "Biodegradable" means capable of being broken down, especially into innocuous products, by the action of living things such as microorganisms.

3. "Energy Star^® compliant" products mean products that meet or exceed the U.S. Environmental Protection Agency's (EPA) Energy Star^® criteria for energy efficiency.

4. "Environmentally Preferable" means products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same

purpose. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product or service.

5. "Industrial Oil" means any compressor, turbine or bearing oil, hydraulic oil, metal-working oil or refrigeration oil.

6. "Life Cycle Analysis" means the comprehensive examination of a product’s environmental and economic aspects and potential impacts throughout its lifetime, including raw material extraction, transportation, manufacturing, use, and disposal.

7. "Lubricating Oil" means any oil intended for use in an internal combustion crankcase, transmission, gearbox or differential or an automobile, bus, truck, vessel, plane, train, heavy equipment or machinery powered by an internal combustion engine.

8. "Post-Consumer Waste," means a finished material that would normally be disposed of as solid waste, having completed its life cycle as a consumer item. “Post-consumer waste” does not include manufacturing waste.

9. "Price Premium Payback Period" means the number of years it takes for the savings in operating costs to offset any additional upfront price of the product versus a lower price, less-energy efficient model. It is calculated by dividing the price premium by the annual savings in operating costs.

10. "Readily Biodegradable" shall be defined according to the Organisation for Economic Cooperation and Development's (OECD) measurement guidelines.

11. "Reblended Latex Paint" or consolidated latex paint, contains 100 percent post-consumer content from good-quality surplus with no virgin materials such as resins and colorants added.

12. "Recyclable Product" means a product that, after its intended end use, can demonstrably be diverted from the solid waste stream for use as a raw material in the manufacture of another product, preferably higher value uses.

13. "Recycled Latex Paint," or reprocessed latex paint, means latex paint with a post-consumer recycled content level that at a minimum meets the requirements specified by the Environmental Protection Agency's (EPA) Recovered Materials Advisory Notice (RMAN) for reprocessed latex paint.

14. "Recycled Material" means any material that would otherwise be a useless, unwanted or discarded material except for the fact that the material still has useful physical or chemical properties after serving a specific purpose and can, therefore, be reused or recycled.

15. "Recycled Oil" means used oil that has been prepared for reuse as a petroleum product by refining, reclaiming, reprocessing or other means provided that the preparation or use is operationally safe, environmentally sound and complies with all laws and regulations.

a. Fifty percent of its fiber weight consisting of secondary waste materials; or

17. “Recycled PETE” means post-consumer polyethylene terephthalate material.

18. “Recycled Product” means all materials, goods and supplies, not less than fifty percent of the total weight of which consists of secondary and post-consumer waste with not less than ten percent of its total weight consisting of post-consumer waste. “Recycled product” includes any product that could have been disposed of as solid waste, having completed its life cycle as a consumer item, but otherwise is refurbished for reuse without substantial alteration of the product’s form.

19. "Retreaded Tire" means any tire that uses an existing casing for the purpose of vulcanizing new tread to such casing that meets all performance and quality standards in the Federal Motor Vehicle Safety Standards determined by the United States Department of Transportation.

20. "Reusable Product" means a product, such as a washable food or beverage container or a refillable ballpoint pen, that can be used several times for an intended use before being discarded.

21. “Secondary Waste Materials” means fragments of products or finished products of a manufacturing process that has converted a virgin resource into a commodity of real economic value. “Secondary waste materials” includes post-consumer waste. “Secondary waste materials” does not include excess virgin resources of the manufacturing process. For paper, “secondary waste materials" does not include fibrous waste generated during the manufacturing process such as fibers recovered from waste water or trimmings of paper machine rolls, mill broke, wood slabs, chips, sawdust or other wood residue from a manufacturing process.

22. "Used Oil" means a petroleum-based oil which through use, storage or handling has become unsuitable for its original purpose due to the presence of impurities or loss of original properties.

23. "Virgin Oil" means oil that has been refined from crude oil and that has not been used or contaminated with impurities.

24. "VOC" (Volatile Organic Compound) means an organic compound characterized by a tendency to readily evaporate into the air, contributing to indoor air pollution and photochemical smog.

B. Environmentally Preferable Procurement General Policy. In developing plans, drawings, work statements, specifications, or other product descriptions, the City shall insure, to the maximum extent economically feasible, the purchase of environmentally preferable products or services that comply with the City's Sustainable City Principles. This includes, but is not limited to, products that are durable, recyclable, reusable, readily biodegradable, energy efficient, made from recycled materials, and nontoxic. Furthermore, the City shall purchase products and services based on long-term environmental and operating costs, and find ways to include environmental and social costs in short-term prices.

1. In accordance with ORS 279A.125, notwithstanding provisions of law requiring the City to award a contract to the lowest responsible bidder or best proposer or provider of a quotation, and subject to PCC Section 5.33.080 C.2., the City shall give preference to the procurement of goods manufactured from recycled materials.

2. In comparing goods from two or more Bidders or Proposers, and at least one Bidder or Proposer offers goods manufactured from recycled materials, and at least one Bidder or Proposer does not, the City shall select the Bidder or Proposer offering goods manufactured from recycled materials if each of the following conditions exits:

c. The recycled product can be substituted for a comparable non-recycled product;

d. The recycled product's costs do not exceed the costs of non-recycled products by more than five percent, or higher if a written determination is made by the City and set forth in the Solicitation Document. For purposes of making the foregoing determination, the City shall consider the costs of the goods following any adjustments the City makes to the price of the goods for purposes of evaluation pursuant to PCC Section 5.33.610; and

e. Offerors, when required in the Solicitation Document, certify in their submitted Offers the minimum, if not exact, percentage of post-consumer waste and total recovered materials content in the products offered.

1. The City shall procure recycled content paper and other alternative environmentally preferable paper according to the City's Sustainable Paper Use policy (Resolution No. 36146).

2. In accordance with the City's Sustainable Paper Use Policy, the City shall procure printers, copiers, and fax machines that, at a minimum, have duplex capability.

1. Preference for Oil Products with Greater Recycled Content: The City shall require that purchases of lubricating oil and industrial oil be made from the vendor whose oil product contains the greater percentage of recycled oil, unless a specific oil product containing recycled oil is:

a. Not available within a reasonable period of time or in quantities necessary to meet the City’s needs;

b. Not able to meet the performance requirements or standard recommended by the equipment or vehicle manufacturer, including any warranty requirements; or

c. Available only at a cost that exceeds the price preference established in PCC Section 5.33.080 C.

2. In accordance with ORS 279B.240 the City shall ensure that its procedures and specifications for the procurement of lubricating oil and industrial oil do not exclude recycled oils and do not require oils to be manufactured from virgin materials.

1. All tires for use on the non-steering wheels of City vehicles shall be equipped with retreaded tires unless one of the following exceptions applies:

c. The vehicles are passenger-carrying vehicles with a gross weight rating of one ton or more; or

d. The cost per mile differential of the retreaded tires exceeds the five percent preference set forth in PCC Section 5.33.080 C.

1. As available, the City shall procure products that meet or exceed Energy Star^® criteria for energy efficiency. This applies to:

b. products that indirectly impact energy use, such as, but not limited to, windows, doors and skylights.

2. City procurement language for such products described in 5.33.080 G.1 shall request from vendors:

a. Evidence that the equipment meets or exceeds the Energy Star^® criteria for energy efficiency; and

b. Savings analyses including: energy (kWh/yr, therms/yr, gallons of gasoline/yr, etc.), operating costs ($/yr), and the price premium payback (years).

3. Price Differential and Payback Period: While many Energy Star^® compliant products are currently available for no price premium, should a price differential exist, the City will apply a simple life cycle cost analysis. Purchases where the price premium payback period is within five years or less shall be encouraged. Where the price premium payback period is longer than five years, Energy Star^® compliant products may still be used; however, the City shall not be obligated to purchase and use Energy Star^® compliant products in those circumstances.

1. All paint must be low-VOC by complying with the current standards set forth by the California South Coast Air Quality Management District Rule 1113 for Architectural Coatings or the VOC and chemical component limits of Green Seal's Standard GS-11, section 4.1.

2. Recycled or reblended latex paint with low-VOC properties, as demonstrated by periodic tests conducted by the manufacturer, shall be given preference and used whenever feasible to the extent that the price differential between the recycled or reblended and virgin latex paint does not exceed the five percent price preference set forth in PCC Section 5.33.080 C.

3. To reduce waste and support the recycled latex paint market, all surplus latex paint shall be recycled using a local latex paint recycling program. Surplus paint includes all latex paint in excess of quantities stored for touch-up purposes. Latex paint stored for touch-up purposes may not exceed 5 percent or 5 gallons, whichever is smaller, by volume, to the nearest gallon.

(Amended by Ordinance No. 179802, effective December 7, 2005.) If the City Awards a Price Agreement or executes a requirements contract that will allow the City to purchase whatever quantity it needs from a Contractor, then City Bureaus shall make their purchases from that Contract unless the Purchasing Agent grants an exemption to that requirement.

A. The City shall Award a Public Contract for Goods and Services covered by this Code using any method authorized by State law or City Code. Such different methods are called methods of “source selection.” Source selection methods

include Cooperative Procurements, Competitive Sealed Bidding, Competitive Sealed Proposals and small, intermediate, sole source, Emergency and Special Procurements.

B. State law requires the City to use the services of Qualified Rehabilitation Facilities (QRF’s) in certain instances. When required, the City shall use a QRF pursuant to PCC Section 5.33.110 before proceeding with a purchase through other methods of source selection.

C. Once the appropriate source selection method has been chosen, the City may consider the best process of selecting a Contractor within the source selection method it has chosen.

D. The City may employ methods of Contractor selection for the Procurement of Goods and Services by using any process authorized by State law, including multi-tiered processes as set forth in PCC Section 5.33.210 B.6.d., including, but not limited to:

2. Discussions leading to best and final Offers in which the City may not disclose private discussions leading to best and final Offers;

3. Discussions leading to best and final Offers, in which the City may not disclose information derived from Proposals submitted by competing Proposers;

6. Multiple-tiered competition designed to identify, at each level, a class of Proposers that fall within a Competitive Range or to otherwise eliminate from consideration a class of lower ranked Proposers;

7. A multi-step Request for Proposals requesting the submission of un-priced technical submittals, and then later issuing a Request for Proposals limited to the Proposers whose technical submittals the City had determined to be qualified under the criteria set forth in the initial Request for Proposals; or

8. Any combination of methods described in PCC Sections 5.33.100 D.1 - 7. or as otherwise adopted by the City Council by ordinance.

E. The methods of Contractor selection identified in PCC Section 5.33.100 D. shall conform to the procedures identified in these rules.

F. The Purchasing Agent is authorized, but not required, to waive any nonconformity with the rules of Contractor selection if the Purchasing Agent determines that the defect was minor and likely would not have had an effect on the outcome of the selection process.

1. “Price” means the cost to the City of the products and services under Contracts procured under the program created by ORS 279.835 to 279.850 as determined by this rule.

2. “Procurement List” means a listing of those nonprofit agencies for Disabled Individuals that currently are qualified to participate in the program created by ORS 279.835 to 279.850 and includes a list of the products and services offered by QRFs and determined by the State Procurement Office to be suitable for purchase by the City.

3. “Qualified Rehabilitation Facility” (“QRF”) means an activity center or rehabilitation facility, certified as a community rehabilitation program or as a vocational service provider through the Oregon Department of Human Services, that the State Procurement Office has determined to be qualified to participate in the program created by ORS 279.835 to 279.850.

4. “QRF Contract” means a Contract entered into under the program created by ORS 279.835 to 279.850.

B. Policy: It is the policy of the City to encourage and assist Disabled Individuals to achieve maximum personal independence through useful and productive gainful employment by assuring an expanded and constant market for sheltered workshop and activity center products and services, thereby enhancing their dignity and capacity for self-support and minimizing their dependence on welfare and need for costly institutionalization. An essential element of this policy is to support sheltered employment to the fullest extent provided by law by contracting for needed Goods and services available from QRFs. The City shall identify contracting opportunities within the organization and Award appropriate Contracts to QRFs in accordance with this rule.

1. When the City intends to procure a product or service that is listed on the Procurement List, it shall procure that product or service, at the Price determined by the State Procurement Office, from a Qualified Rehabilitation Facility if the product or service is of Specifications appropriate to the City’s Procurement needs and is available within the time required by the City.

2. The City shall enter into and renew QRF Contracts only for the specific products or services that are on the Procurement List.

3. If a QRF is removed from the Procurement List, the City shall not Award or renew a QRF Contract, and the removal from the Procurement List shall constitute sufficient grounds for the City to terminate any outstanding QRF Contract.

4. No placement of a product or service on the Procurement List shall act to displace a Contractor under an existing Contract with the City for the same product or service prior to the expiration or other termination of the Contractor’s Contract with the City. However, where a product or service is on the Procurement List, no existing Contract shall be renewed for such a product or service.

5. If a QRF submits a Competitive Bid, Proposal, price quotation or other Offer in a competitive Procurement for a Public Contract, then regardless of whether the Offer was accepted, that QRF may not, at any time during the initial term of the Contract for which the QRF submitted a Bid, Proposal or Offer, make any claim to the City that the product or service that was the subject of the Offer is on the Procurement List. If, during the Solicitation process, a QRF claims the product or service that is the subject of the Procurement is on the Procurement List, then, if the product or service is determined to have been on the Procurement List at the time the Solicitation Document was issued, the Solicitation process shall be terminated so long as a Contract has not been fully executed at the time the claim is made.

1. When a product or service on the Procurement List is offered by more than one QRF, the City may purchase the required product or service from any QRF without competition between QRFs.

2. The City may use the formal selection procedure similar to that described in PCC Section 5.33.050 to select a QRF to provide a service on the Procurement list, provided that:

a. The Solicitation shall not request any information concerning price and price shall not be a consideration in making the Award.

c. Notice of the Solicitation may be given to those QRFs offering the service on the Procurement List.

d. After selection of a QRF the price will be determined in accordance with PCC Section 5.33.110 D.3.

a. Price for products or services where the Price is listed. For products or services on the Procurement List where the Price is listed, the Contract shall provide that the City will pay the Price that is listed.

b. Price for services where the Price is not listed. For services for which no Price is listed on Procurement List, the City shall proceed as follows:

(1) The City shall request that the QRF submit its proposed Price to the City based on the volume or Scope of the Work and Specifications provided by the City as prescribed in the proposed Contract between the QRF and the City. For janitorial and security services where a Fair Wage is required to be paid, the Specifications shall state the wage required to be paid.

(2) In submitting its proposed Price to the City, the City shall require the QRF to make full disclosure of known costs. The disclosure must include documentation, on a form prescribed by the State Procurement Office, that the costs proposed will result in a Price that will permit the QRF to recover the amounts prescribed in ORS 279.845(1)(a). The City shall require that an authorized officer of the QRF certify that the costs claimed are, to the best of the officer’s knowledge, reasonable and adequate, and that the proposed Price will permit the QRF to recover the amounts prescribed in ORS 279.845(1)(a).

(3) If the QRF and the City agree on the terms and conditions of a proposed Contract and the price for the services to be provided under the proposed Contract, the Department shall present the proposed Contract (including the agreed Price) to the State Procurement Office for review and approval of the Price. If the QRF and the City cannot agree on the price, the parties shall present the issue of price to the State Procurement Office for determination.

(4) The City shall not execute or implement any Contract under the program created by ORS 279.835 to 279.850 until the State Procurement Office has transmitted notice of the Price approved determined by the State Procurement Office to the City and the QRF.

c. Re-determinations of Price. The Price established by the State Procurement Office shall apply for the initial term or period of the Contract unless otherwise approved by the State Procurement Office. The State Procurement Office may re-determine a Price at the request of a QRF or City, or at the discretion of the State Procurement Office. Until the State Procurement Office approves a new Price, the QRF shall continue to provide, at the established Price, the service or product in accordance with the Scope of Work that was the basis for establishing the existing Price.

d. The City shall not pay or agree to pay a QRF any amount other than the Price approved by the State Procurement Office. Any Price established by the State Procurement Office for a product or service shall remain in effect until the State Procurement Office approves a new Price.

E. The City shall not make material changes (changes that affect the cost of providing the products or services in more than a negligible manner) to the Specifications of a QRF Contract under ORS 279.835 to 279.850 unless the changes are in Writing and have been submitted to the State Procurement Office for a re-determination of Price. If the City wishes to make a material change to the Specifications from the most recent Solicitation for the product or service, the City shall notify the QRF in Writing of the specific changes in the Scope of Work or other conditions which will be required during the new Contract period. No agreement making a material change in the Specifications shall be executed until State Procurement Office re-determines the Price.

A. Generally. The City may Award a Public Contract without competition as a Sole Source Procurement if the Purchasing Agent or Council, depending on the amount of the Contract, makes a Written finding that:

1. Efficient utilization of existing Goods or Services requires the acquisition of compatible Goods or Services;

2. The Goods or Services required for the exchange of software or data with other public or private agencies are available from only one source;

4. Any other findings that support the conclusion that the Goods or Services are available from only one source.

B. Negotiation with a sole source Contractor is desirable. The City is entitled to negotiate with any sole source Contractor to obtain a favorable price, terms or conditions.

C. Public Notice. The City shall give notice of the determination that the Goods or Services or class of Goods or Services are available from only one source when the Contract is estimated to be greater than $50,000 by publishing a notice on the Bureau of Purchases’ website at least seven (7) Days before the Contract is Awarded.

A. The City may Award a Public Contract as an Emergency Procurement without the use of competitive sealed Bidding or competitive sealed Proposals as authorized by ORS 279B.050(2) when the requirements of ORS 279B.080 and this rule are met.

B. The Council, or person authorizing the Emergency Procurement, shall document the nature of the Emergency and describe the method used for the selection of the particular Contractor. The City shall encourage competition for Emergency Procurements to the extent reasonable under the circumstances.

C. The authority to declare an Emergency and authorize an Emergency Procurement shall be as follows:

1. The Purchasing Agent may declare the existence of an Emergency and authorize the City or any of its bureaus to enter into an Emergency Procurement Contract under $150,000.

2. A bureau director may declare the existence of an Emergency and authorize the bureau to enter into an Emergency Procurement Contract under $150,000 only if the Purchasing Agent or person to whom the powers of the Purchasing Agent have been delegated, is not available when the Procurement needs to be made.

3. A Commissioner-in-Charge of a bureau may declare the existence of an Emergency and authorize the City and the bureaus of which the Commissioner has responsibility to enter into an Emergency Procurement Contract not exceeding $500,000.

4. A Commissioner-in-Charge of a bureau may declare the existence of an Emergency and authorize the City and the bureaus of which the Commissioner has responsibility to enter into an Emergency Procurement Contract exceeding $500,000 subject to the following procedures:

a. Following the declaration of Emergency the Commissioner shall immediately prepare an ordinance for approval of the Emergency Procurement Contract by the City Council at its next regularly scheduled session or as soon as possible thereafter. That Contract shall be added to the regular agenda of the Commissioner without the need for approval for inclusion on the agenda by other Commissioners.

b. If the Council adopts the ordinance, the City will pay for the Work required by the Contract. If Council disapproves the ordinance, the City only will pay for Work performed prior to the date that the Council considered the ordinance for approval. If for any reason presentation of the ordinance to the Council is delayed, the City still will only be liable for Work performed prior to the time when the ordinance first was presented to the Council.

D. All documentation of Emergency Procurements shall be sent to the Purchasing Agent for record keeping purposes.

E. All Emergency Procurement Contracts Awarded when there was no Emergency or reasonable perception of Emergency are void unless the Contract was otherwise valid under another portion of the City’s Purchasing Rules.

F. After the Award of an Emergency Procurement Contract, the City shall execute a Written Contract with the Contractor as soon as possible, and in no event later than 60 Days after the Award.

G. All such Contracts, whether or not signed by the Contractor, shall be deemed to contain a termination for convenience clause permitting the City to immediately terminate the Contract at its discretion and, unless the Contract was void, the City shall pay the Contractor only for Work performed prior to the date of termination plus the Contractor’s unavoidable costs incurred as a result of the termination. In no event will the City pay for anticipated lost profits or consequential damages as a result of the termination.

A. The City may participate in, sponsor, conduct or administer Joint Cooperative Procurements to establish Contracts or Price Agreements for Goods or Services, as defined in these rules, that use source selection methods substantially equivalent to those set forth in PCC Sections 5.33.200, 5.33.210 or 5.33.220.

B. The City may participate in, sponsor, conduct or administer Permissive Cooperative Procurements to establish Contracts or Price Agreements for the acquisition of Goods or Services, as defined in these rules, that use source selection methods substantially equivalent to those set forth in PCC Sections 5.33.200 or 5.33.210.

C. The City may participate in, sponsor, conduct or administer Interstate Cooperative Procurements to establish Contracts or Price Agreements for the acquisition of Goods or Services, as defined in these rules, that use source selection methods substantially equivalent to those set forth in PCC Section 5.33.200 or 5.33.210.

D. A Solicitation and Award process uses source selection methods substantially equivalent to those identified in PCC Section 5.33.200, 5.33.210 or 5.33.220 if the Solicitation and Award process:

1. Calls for Award of a Contract on the basis of a lowest Responsible Bidder or a lowest and best Bidder determination in the case of Competitive Bids, on the basis of a determination of the Proposer whose Proposal is most Advantageous based on evaluation factors set forth in the Request for Proposals in the case of competitive Proposals;

2. Does not permit the application of any geographic preference that is more favorable to Bidders or Proposers who reside in the jurisdiction or locality favored by the preference than the preferences provided in ORS 279A.120(2); and

3. Uses reasonably clear and precise Specifications that promote suitability for the purposes intended and that reasonably encourage competition.

E. The City shall determine, in Writing, whether the Solicitation and Award process for an Original Contract arising out of a Cooperative Procurement is substantially equivalent to those identified in PCC Section 5.33.200, 5.33.210 or 5.33.220 in accordance with PCC Section 5.33.140.

F. Protests. Protests regarding the use of all types of Cooperative Procurements shall be governed by the applicable provisions of PCC Section 5.33.700 et seq.

G. For purposes of PCC Section 5.33.140 through 5.33.170 the following definitions are applicable:

1. “Administering Contracting Agency” means a Contracting agency that solicits and establishes the original Contract for Procurement of goods, services or Public Improvements in a Cooperative Procurement.

2. “Cooperative Procurement” means a Procurement conducted by or on behalf of one or more Contracting agencies. “Cooperative Procurement” includes but is not limited to multiparty Contracts and Price Agreements.

3. “Cooperative Procurement Group” means a group of Contracting agencies joined through an intergovernmental agreement for the purposes of facilitating Cooperative Procurements.

4. “Interstate Cooperative Procurement” means a permissive Cooperative Procurement in which the Administering Contracting Agency is a governmental body, domestic or foreign, that is authorized under the governmental body’s laws, rules or regulations to enter into Public Contracts and in which one or more of the participating agencies are located outside this state.

5. “Joint Cooperative Procurement” means a Cooperative Procurement in which the participating Contracting agencies or the Cooperative Procurement group and the agencies’ or group’s Contract requirements or estimated Contract requirements for Price Agreements are identified.

6. “Original Contract” means the initial Contract or Price Agreement solicited and Awarded during a Cooperative Procurement by an Administering Contracting Agency.

7. “Permissive Cooperative Procurement” means a Cooperative Procurement in which the Purchasing Contracting Agencies are not identified.

8. “Purchasing Contracting Agency” means a Contracting agency that procures goods, services or Public Improvements from a Contractor based on the Original Contract established by an Administering Contracting Agency.

1. It may charge a fair and reasonable fee to purchasing Contract agencies that represent the excess costs of administering the Contract in light of the Purchasing Contracting Agencies use of that Contract; and

2. Determine whether the purchasing Contract agency must enter into a Written agreement with it.

B. If the City is a Purchasing Contracting Agency it is authorized to pay a fee to the Administering Contracting Agency that the Purchasing Agent determines is fair and reasonable in light of all the circumstances surrounding the Procurement, including the savings that may be obtained if a Cooperative Procurement is used, the cost of the Procurement in relationship to the fee, and other factors as may be considered. If a fee is paid, it will be borne by the Bureau or portion of the City on whose behalf the Procurement is being made.

A. A Joint Cooperative Procurement is a Cooperative Procurement in which the Contracting Agencies or the Cooperative Procurement Group and the Agencies’ or Group’s Contract requirements or estimated Contract requirements for Price Agreements are identified in the Solicitation Document.

2. The Administering Contracting Agency’s Solicitation and the Original Contract or Price Agreement identifies the Cooperative Procurement group or each participating Purchasing Contracting Agency and specifies the estimated Contract requirements; and

3. No material change is made in the terms, conditions or prices of the Contract between the Contractor and the Purchasing Contracting Agency from the terms, conditions and prices of the Original Contract between the Contractor and the Administering Contracting Agency.

C. A Joint Cooperative Procurement may not be a Permissive Cooperative Procurement.

A. A Permissive Cooperative Procurement is a Cooperative Procurement in which the Purchasing Contracting Agencies are not identified in the Solicitation Document.

2. The Administering Contracting Agency’s Solicitation and Award process for the original Contract is allow the City to establish contracts or price agreements under the terms, conditions and prices of the original contract;

3. The Contractor agrees to extend the terms, conditions and prices of the original contract to the Purchasing Contractor Agency; and

4. No material change is made in the terms, conditions or prices of the contract or price agreement between the Contractor the Purchasing Contracting Agency from the terms, conditions and prices of the original contract between the Contractor and the Administering Contracting Agency.

C. If the City wishes to enter into a Contract or Price Agreement arising out of a Permissive Cooperative Procurement it must publish notice of its intent to do so if it is estimated that the City will spend in excess of $250,000, on Goods and Services acquired under the Contract or Price Agreement.

1. The City’s Contract or Price Agreement arising out of the Permissive Cooperative Procurement expressly provides that the City will make payments over the term of the Contract or Price Agreement that will, in aggregate, exceed $250,000, whether or not the total amount or value of the payments is expressly stated;

2. The City’s Contract or Price Agreement arising out of the Permissive Cooperative Procurement expressly provides for a guaranteed maximum price, or a maximum not to exceed amount in excess of $250,000; or

3. The City reasonably contemplates, based on historical or other data available to the Purchasing Contracting Agency, that the total payments it will make for Goods or Services under the Contract or Price Agreement will, in aggregate, exceed $250,000 over the anticipated duration of the Contract or Price Agreement.

E. The notice of intent required by this rule shall contain the following information:

4. A time, place and date by which comments must be submitted to the City regarding the intent to establish a Contract or Price Agreement through a Permissive Cooperative Procurement;

F. Time: The City shall advertise the notice in the same manner as provided in PCC Section 5.33.300 A. The City shall give the notice required by this rule no fewer than seven (7) Days before the deadline for submitting comments regarding its intention to establish a Contract or Price Agreement through a Permissive Cooperative Procurement.

G. An Administering Contracting Agency that intends to establish a Contract or Price Agreement arising out of the Permissive Cooperative Procurement it administers may satisfy the notice requirements set forth in this rule by including the information required by PCC Section 5.33.160 D., in the Solicitation Document related to the Permissive Cooperative Procurement, and including instructions in the Solicitation Document to potential Offerors describing how they may submit comments in response to the Administering Contracting Agency’s intent to establish a Contract or Price Agreement through the Permissive Cooperative Procurement. The content and timing of such notice shall comply in all respects with ORS 279A.215(2), ORS 279A.215(3) and these Rules.

H. If the City receives comments on the intent to establish a Contract or Price Agreement through a Permissive Cooperative Procurement, the City shall make a Written determination that establishing a Contract or Price Agreement is in the best interest of the City before executing the Contract or using the Price Agreement.

A. An Interstate Cooperative Procurement is a Permissive Cooperative Procurement in which the Administering Contracting Agency is a governmental body, domestic or foreign, that is authorized under the governmental body’s laws, rule or regulations to enter into Public Contracts and in which one or more of the participating agencies are located outside the State of Oregon.

B. The City may procure Goods and Services through an Interstate Cooperative Procurement if:

2. The Administering Contracting Agency’s Solicitation and the Original Contract allows other governmental bodies to establish Contracts or Price Agreements under the terms, conditions and prices of the Original Contract; and

3. The Administering Contracting Agency permits the Contractor to extend the use of the terms, conditions and prices of the Original Contract to the Purchasing Contracting Agency; and

a. was listed in the Solicitation of the Administering Contract Agency as a party that may establish Contracts or Price Agreements under the terms, conditions and prices of the Original Contract and the Solicitation was advertised in Oregon, or

b. is a member of a Cooperative Procurement Group and the Group was listed in the Solicitation of the Administering Contracting Agency as a party that may establish Contracts or Price Agreements under the terms, conditions and prices of the Original Contract and the Solicitation was advertised in Oregon; or

c. publishes a Notice of intent to establish a Contract or Price Agreement in the manner required by 5.33.170 C below.

C. Notice of Intent. If the City is required by this rule to publish a notice of intent to establish a Contract or Price Agreement through an Interstate Cooperative Procurement, the notice shall include:

4. A time, place and date by which comments must be submitted to the City regarding its intent to establish a Contract or Price Agreement through an Interstate Cooperative Procurement.

D. The City shall give public notice at least seven (7) Days before the deadline for submission of comments regarding its intent to establish a Contract or Price Agreement through an Interstate Cooperative Procurement.

E. If the City receives comments within seven (7) Days after publication of its notice, the City shall make a Written determination that establishing a Contract or Price Agreement through an Interstate Cooperative Procurement is in the best interest of the City and provide a copy of the Written determination to any vendor that submitted comments before a Contract or Price Agreement may be established.

A. For Procurements of Goods and Services not exceeding $5,000 the City may Award a Public Contract as a Small Procurement pursuant to ORS 279B.065 and this rule. The City may choose any method of selecting such Contractors, including, but not limited to, offering the Contract to only one firm or conducting a competition for the Contract.

B. State law prohibits a Procurement from being artificially divided or fragmented so as to constitute a small Procurement under this section.

C. Notwithstanding any other provisions of the City Code, small Procurements shall not be amended beyond $5,000 without prior approval of the Purchasing Agent before the additional Goods or Services are provided.

A. Generally. For Procurements of Goods and Services not exceeding $150,000, the City may Award a Public Contract as an Intermediate Procurement pursuant to ORS 279B.070. A Procurement shall not be artificially divided or fragmented so as to constitute an intermediate Procurement under this section.

1. Oral Price Quotations: For Procurement of Goods and Services not exceeding $50,000, the City may Award a Public Contract after seeking three oral price quotations.

2. Written Price Quotations: For Procurements of Goods or Services anticipated to exceed $50,000 but not exceeding $150,000, the City may Award a Contract after seeking three Written price quotations.

B. For all intermediate Procurements, the City shall seek at least three informally solicited competitive price quotations or competitive Proposals from prospective Contractors, and shall keep Written records of the sources of the quotations or Proposals received. If three quotations or Proposals are not reasonably available, the City may proceed with the Procurement but only after making a Written record of the effort made to obtain the quotations or Proposals.

C. Negotiations: The City may negotiate with an Offeror to clarify its price quotation or Proposal or to effect modifications that will make the price quotation or Proposal acceptable or more Advantageous to the City, provided that all Offerors contacted are offered the same opportunity in order to compete on the same basis.

A. The City may procure Goods and Services by Competitive Sealed Bidding as set forth in ORS 279B.055. An Invitation to Bid (ITB) is used to initiate a competitive sealed Bid Solicitation and shall contain the information required by PCC Section 5.33.200 B. Public Notice of the Competitive Sealed Bidding Solicitation shall be provided as required by PCC Section 5.33.300.

a. A time and date by which the Bids must be received and a place at which the Bids must be submitted;

b. The name and title of the person designated for the receipt of Bids and the person designated by the City as the contact person for the Procurement, if different;

d. A time, date, and place that Prequalification applications, if any, must be filed and the classes of Work, if any, for which Bidders must be prequalified in accordance with ORS 279B.100 and PCC Section 5.33.510;

e. A statement that the City may cancel the Procurement or reject any or all Bids in accordance with ORS 279B.100 and PCC Section 5.33.645;

f. A statement that requires the Contractor or Subcontractor to possess an asbestos abatement license, if required under ORS 468A.710;

(2) Whether attendance at the conference will be mandatory or voluntary; and

(3) That statements made by the City’s representatives at the conference or elsewhere are not binding upon the City unless confirmed by Written Addendum;

i. The form and submission of Offers and any other special information, e.g., whether Offers may be submitted by Electronic means;

k. The office where the Specifications for the Goods or Services may be reviewed;

l. A statement that each Bidder to an ITB must identify whether the Bidder is a “Resident Bidder,” as defined in PCC Section 5.33.010 A.51.;

m. Contractor’s certification of nondiscrimination in obtaining required Subcontractors in accordance with ORS 279A.110(4). (See PCC Section 5.33.075); and

n. How the City will notify Offerors of Addenda and how the City will make Addenda available. See PCC Section 5.33.430; and

o. That Bidders may be required to obtain a Business License and may be required to be EEO certified.

2. City Need. The character of the Goods or Services the City is purchasing including, if applicable, a description of the acquisition, Specifications, delivery or performance schedule, inspection and acceptance requirements;

a. The anticipated Solicitation schedule, deadlines, protest process, and evaluation process, if any;

b. Evaluation criteria, including the relative value applicable to each criterion, that the City will use to determine the Responsible Bidder with the lowest Responsive Bid and the evaluation criteria the City will use to determine acceptability of any Goods or Services to be purchased;

c. If the City intends to Award Contracts to more than one Bidder, the City must identify in the Solicitation Document the manner in which it will determine the number of Contracts it will Award. The criteria shall require the City to purchase the lowest priced goods, services or personal service available from the multiple Contracts; and

d. The City shall set forth objective evaluation criteria in the Solicitation Document in accordance with the requirements of ORS 279B.055(6)(a). Evaluation criteria need not be precise predictors of actual future costs, but to the extent possible, such evaluation factors shall be reasonable estimates based on information the City has available concerning future use.

4. Preference for Goods manufactured from Recycled Materials under PCC Section 5.33.080 and ORS 279A.125;

5. Unless otherwise provided in the Contract, the Contractor shall not assign, sell, dispose of, or transfer rights, nor delegate duties under the Contract, either in whole or in part, without the City’s prior Written consent. Unless otherwise agreed by the City in Writing, such consent shall not relieve the Contractor of any obligations under the Contract. Any assignee or transferee shall be considered the agent of the Contractor and be bound to abide by all provisions of the Contract. If the City consents in Writing to an assignment, sale, disposal or transfer of the Contractor’s rights or delegation of Contractor’s duties, the Contractor and its surety, if any,

shall remain liable to the City for complete performance of the Contract as if no such assignment, sale, disposal, transfer or delegation had occurred unless the City otherwise agrees in Writing.

A. General. The City may use multi-step Competitive Sealed Bids pursuant to ORS 279B.055(12).

B. Phased Process. Multi-step Bidding is a phased process which seeks necessary information or un-priced technical Offers in the initial phase and regular competitive sealed Bidding, inviting Offerors who submitted technically acceptable Offers in the initial phase, to submit competitive sealed price Bids on the technical Offers in the final phase. The Contract shall be Awarded to the lowest Responsible Bidder. If time is a factor, the City may require Offerors to submit a separate sealed price Bid during the initial phase to be opened after the technical evaluation.

C. Public Notice. Whenever multi-step sealed Bids are used for Contracts over $150,000, Public Notice for the first phase shall be given in accordance with PCC Section 5.33.300. Public Notice is not required for the second phase. However, the City shall give notice of subsequent phases to all Bidders and inform Bidders of the right to protest Addenda issued after initial Closing pursuant to PCC Section 5.33.430 and inform Bidders excluded from the subsequent phases of the right, if any, to protest exclusion pursuant to PCC Section 5.33.720.

D. Procedures Generally. In addition to the procedures set forth in PCC Sections 5.33.300 through 5.33.340, the City shall use the procedures set forth in this rule for multi-step Bidding:

1. Solicitation protest. Prior to the Closing of Phase one, the City shall provide an opportunity to protest the Solicitation pursuant to ORS 279B.405 and PCC Section 5.33.730.

2. Addenda Protest. The City may provide an opportunity to protest any Addenda issued during phase two pursuant to PCC Section 5.33.430.

3. Exclusion Protest. The City may, but is not required, provide an opportunity for a Bidder to protest exclusion from the second round of multi-step sealed Bids as set forth in PCC Section 5.33.720.

4. Administrative Remedy. Proposers may submit a protest to any Addenda or to any action by the City that has the effect of excluding the Bidder from the second phase of multi-step Bidding to the extent such protests are provided for in the Solicitation Document required by this section. Failure to protest shall be considered the failure to pursue an administrative remedy made available to the Bidder by the City.

5. Award Protest. An Affected Person may protest the Notice of Intent to Award issued by the City pursuant to these rules. If the City did not provide an opportunity to protest a Bidder’s exclusion from the second or later phases of multi-step Bidding or an Addendum issued following initial Closing, the Bidder may do so following the issuance of the Notice of Intent to Award within the same time frame as an Affected Person.

1. Form. Multi-step sealed Bidding shall be initiated by the issuance of an Invitation to Bid in the form required for competitive sealed Bids except as hereinafter provided. In addition to the requirements of PCC Section 5.33.200 B., the multi-step Invitation to Bid shall state:

b. whether priced Bids are to be submitted at the same time as un-priced technical Offers; if they are, such priced Bids shall be submitted in a separate sealed envelope;

c. that it is a multi-step sealed Bid Procurement, and priced Bids will be considered only in a subsequent phase and only from those Bidders whose un-priced technical Offers are found acceptable in the first phase;

e. that the City, to the extent it finds necessary, may conduct oral or Written discussions of the un-priced technical Offers;

f. that Bidders may designate those portions of the un-priced technical Offers which contain trade secrets or other proprietary data which are to remain confidential; and

g. that the Goods or Services being procured shall be furnished generally in accordance with the Bidder’s technical Offer as found to be finally acceptable and shall meet the requirements of the Invitation to Bid; and

h. Whether Bidders excluded from subsequent phases have a right to protest the exclusion before the notice of Intent to Award. Such information can be given or changed by Addenda.

2. Addenda to the Invitation to Bid. After receipt of un-priced technical Offers, Addenda to the Invitation to Bid shall be distributed only to Offerors who submitted un-priced technical Offers.

3. Receipt of Handling of Un-priced Technical Offers. Un-priced technical Offers need not be opened publicly.

4. Evaluation of Un-Priced Technical Offers. The un-priced technical Offers submitted by Offerors shall be evaluated solely in accordance with the criteria set forth in the Invitation to Bid. The un-priced technical Offers shall be categorized as:

b. Potentially eligible; that is, reasonably susceptible of being made eligible; or

c. Ineligible. The City shall record in Writing the basis for finding a Bid ineligible and make it part of the Procurement file. The City may initiate Phase Two of the procedure if, in the City’s opinion, there are sufficient eligible un-priced technical Offers to assure effective price competition in the second phase without technical discussions. If the City finds that such is not the case, the City shall issue an Addendum to the Invitation to Bid or engage in technical discussions as set forth in PCC Section 5.33.205 E.5.

5. Discussion of Un-priced Technical Offers. Clarification of its technical Bid may be conducted by the City with any Bidder who submits an eligible, or potentially eligible technical Bid. During the course of such discussions, the City shall not disclose any information derived from one un-priced technical Offer to any other Bidder. Once discussions are begun, any Bidder who has not been notified that its Offer has been finally found ineligible, may submit supplemental information amending its technical Offer at any time until the date and time established by the City. Such submission may be made at the request of the City or upon the Bidder’s own initiative.

6. Notice of Ineligible Un-priced Technical Offer. When the City determines a Bidder’s un-priced technical Offer to be eligible, such Bidder shall not be afforded an additional opportunity to supplement technical Offers.

7. Mistakes During Multi-Step Sealed Bidding. Mistakes may be corrected or Bids may be withdrawn during Phase One:

c. when responding to any amendment of the Invitation to Bid by Addendum. Otherwise mistakes may be corrected or withdrawal permitted in accordance with PCC Section 5.33.490.

a. open priced Bids submitted in Phase One (if priced Bids were required to be submitted) from Bidders whose un-priced technical Offers were found to be eligible; or

b. if priced Bids have not been submitted, technical discussions have been held, or amendments to the Invitation to Bid have been issued by Addendum, invite each eligible Bidder to submit a priced Bid.

2. Conduct. Phase Two shall be conducted as any other competitive sealed Bid Procurement except:

b. no public notice need be given of this invitation to submit priced Bids because such notice was previously given.

A. City may procure Goods and Services by Competitive Sealed Proposals as set forth in ORS 279B.060 and this rule. A Request for Proposal is used to initiate a competitive sealed Proposal Solicitation and shall contain the information required by PCC Section 5.33.210 B. The City shall provide Public Notice of the Competitive Sealed Proposal Solicitation as provided in PCC Section 5.33.300.

B. Mandatory provisions in RFP Solicitation Documents. The RFP shall include the following:

a. A time, date and location when the sealed Proposals must be submitted and received;

b. The name and title of the person designated for the receipt of Proposals and the person designated by the City as the contact person for the Procurement, if different;

e. A statement that the City may cancel the Procurement or reject any or all Proposals in accordance with ORS 279B.100 and PCC Section 5.33.645;

f. A statement that requires the Contractor or Subcontractor to possess an asbestos abatement license, if required under ORS 468A.710;

g. All Contractual terms and conditions applicable to the Procurement, including warranties and bonding requirements, if necessary. If the City intends to allow discussions or negotiations regarding terms and conditions it must either specify the terms and conditions subject to negotiation or the subject matter reasonably related to the terms and conditions that it will negotiate;

(2) Whether attendance at the conference will be mandatory or voluntary; and

(3) That statements made by the City’s representatives at the conference or elsewhere are not binding upon the City unless confirmed by Written Addendum;

i. The form and submission of Offers and any other special information, e.g., whether Offers may be submitted by Electronic means;

k. The location where the Specifications for the Goods or Services may be reviewed;

l. Contractor’s certification of nondiscrimination in obtaining required Subcontractors in accordance with PCC Section 5.33.075; and

m. How the City will notify Offerors of Addenda and how the City will make Addenda available.

a. The anticipated Solicitation schedule, deadlines, protest process, and evaluation process, if any;

b. Evaluation criteria, including the relative value applicable to each criterion;

c. The City shall set forth selection criteria in the Solicitation Document in accordance with the requirements of PCC Section 5.33.210. Evaluation factors need not be precise predictors of actual future costs and performance, but to the extent possible, such factors shall be reasonable estimates based on information available to the City;

d. If the City intends to Award Contracts to more than one Proposer, the City must identify in the Solicitation Document the manner in which it will determine the number of Contracts it will Award. The City shall also include the criteria it will use to determine how the City will endeavor to achieve optimal value, utility and substantial fairness when selecting a particular Contractor to provide Goods or Services from those Contractors Awarded Contracts; and

4. Preference for Goods manufactured from Recycled Materials under PCC Section 5.33.080 and ORS 279A.125;

a. That certain identified Contractual terms or conditions that the City is reserving for negotiation with Proposers;

b. That Proposers propose Contractual terms and conditions that relate to subject matter reasonably identified in the Request for Proposals;

c. The form of Contract that the City will accept, or suggested Contract terms and conditions that nevertheless may be the subject of negotiations with Proposers;

d. That the method of Contractor selection may include negotiations with the highest ranked Proposers, Competitive Negotiations, multiple-tiered competition designed to identify a class of Proposers that fall within a Competitive Range or to otherwise eliminate from consideration a class of lower ranked Proposers, or any combination of these methods;

e. That the City may conduct site tours, demonstrations, individual or group discussions and other informational activities with Proposers before or after the Opening of Proposals for the purpose of clarification to ensure full understanding of, and responsiveness to, the Solicitation’s requirements or to consider and respond to requests for modifications of the Proposal requirements.

f. If the optional provision in PCC Section 5.33.210 B.6.e. is used, the City shall use procedures designed to accord Proposers fair and equal treatment with respect to any opportunity for discussion and revision of Proposals.

A. Competitive Range. When the City’s Solicitation process conducted pursuant to PCC Section 5.33.210 calls for the City to establish a Competitive Range at any stage in the Procurement process, it shall do so as follows:

a. The City shall establish a Competitive Range after evaluating all Responsive Proposals in accordance with the evaluation criteria set forth in the Request for Proposals. After evaluation of all Proposals in accordance with the criteria set forth in the Request for Proposals, the City shall determine and rank the Proposers in the Competitive Range.

b. The City may increase the number of Proposers in the Competitive Range if the City’s evaluation of Proposals establishes a natural break in the scores of Proposers indicating a number of Proposers greater than the initial Competitive Range are closely competitive, or have a reasonable chance of being determined the most Advantageous Proposer. The City may decrease the number of Proposers in the initial Competitive Range only if the excluded Proposers have no reasonable chance to be the most Advantageous Proposer.

2. Protesting Competitive Range. The City shall provide Written notice to all Proposers identifying Proposers in the Competitive Range. The City may provide an opportunity for Proposers excluded from the Competitive Range to protest the City evaluation and determination of the Competitive Range in accordance with PCC Section 5.33.720.

3. Intent to Award; Discuss or Negotiate. After determination of the Competitive Range and after any protest period provided in accordance with PCC Section 5.33.215 A.2., or after the City has provided a final response to any protest, whichever date is later, the City may either:

a. Provide Written notice to all Proposers in the Competitive Range of its intent to Award the Contract to the highest-ranked Proposer in the Competitive Range.

(1) An unsuccessful Proposer may protest the City’s intent to Award in accordance with PCC Section 5.33.740.

(2) After the protest period provided in accordance with PCC Section 5.33.740 expires, or after the City has provided a final response to any protest, whichever date is later, the City shall commence negotiations in accordance with PCC Section 5.33.215 A.3. with Proposers in the Competitive Range; or

b. Engage in discussions with Proposers in the Competitive Range and accept revised Proposals from them as set forth in PCC Section 5.33.215 B.2. and following such discussions and receipt and evaluation of revised Proposals, conduct negotiations as set forth in PCC Section 5.33.215 C. of this rule with the Proposers in the Competitive Range.

B. Discussions; Revised Proposals. If the City chooses to enter into discussions with and receive best and final Offers (See PCC Section 5.33.215 D.) the City shall proceed as follows:

1. Initiating Discussions. The City shall initiate oral or Written discussions with all Proposers submitting Responsive Proposals or all Proposers in the Competitive Range (collectively “eligible Proposers”) regarding their Proposals with respect to the provisions of the RFP that the City identified in the RFP as the subject of discussions. The City may conduct discussions for the following purposes:

b. Notifying eligible Proposers of parts of their Proposals for which the City would like additional information; or

c. Otherwise allowing eligible Proposers to develop revised Proposals that will allow the City to obtain the best Proposal based on the requirements and evaluation criteria set forth in the Request for Proposals.

2. Conducting Discussions. The City may conduct discussions with each eligible Proposer necessary to fulfill the purposes of PCC Section 5.33.215 B., but need not conduct the same amount of discussions with each eligible Proposer. The City may terminate discussions with any eligible Proposer at any time. However, the City shall Offer all eligible Proposers the same opportunity to discuss their Proposals with the City before the City notifies eligible Proposers of the date and time pursuant to PCC Section 5.33.215 D. that best and final Proposals will be due.

(1) Shall treat all eligible Proposers fairly and shall not favor any eligible Proposer over another;

(2) Shall disclose other eligible Proposer’s Proposals or discussions only in accordance with ORS 279B.060(6)(a)(B) or (C);

(3) May adjust the evaluation of a Proposal as a result of a discussion under this section. The conditions, terms, or price of the Proposal may be altered or otherwise changed during the course of the discussions provided the changes are within the Scope of the Request for Proposals.

(2) Terminate discussions with a particular eligible Proposer and continue discussions with other eligible Proposers; or

(3) Conclude discussions with all remaining eligible Proposers and provide notice pursuant to PCC Section 5.33.215 D. to the eligible Proposers requesting best and final Offers.

1. Initiating Negotiations. The City may commence serial negotiations with the highest-ranked eligible Proposers or commence simultaneous negotiations with all eligible Proposers as follows:

b. After initial determination of the Competitive Range in accordance with PCC Section 5.33.215 A.; or

c. After conclusion of discussions with all eligible Proposers and evaluation of revised Proposals (See PCC Section 5.33.215 B.).

(2) The Contract Price as it is affected by negotiating the statement of Work; and

(3) Any other terms and conditions reasonably related to those expressly authorized for negotiation in the Request for Proposals or Addenda thereto. Accordingly, Proposers shall not submit, and the City shall not accept, for negotiation any alternative terms and conditions that are not reasonably related to those expressly authorized for negotiation in the Request for Proposals or Addenda thereto.

b. Terminating Negotiations. At any time during discussions or negotiations that the City conducts in accordance with PCC Sections 5.33.215 B. and C., the City may terminate discussions or negotiations with the highest-ranked Proposer, or the Proposer with whom it is currently discussing or negotiating, if the City reasonably believes that:

(2) Further discussions or negotiations with the Proposer will not result in the parties agreeing to the terms and conditions of a final Contract in a timely manner.

3. Continuing Serial Negotiations. If the City is conducting serial negotiations and the City terminates negotiations with a Proposer in accordance with PCC Section 5.33.215 C.2.b., the City may then commence negotiations with the next highest scoring Proposer in the Competitive Range, and continue the process described in PCC Section 5.33.215 C. until the City has either:

a. Determined to Award the Contract to the Proposer with whom it is currently discussing or negotiating; or

b. Completed one round of discussions or negotiations with all Proposers in the Competitive Range, unless the City provided for more than one round of discussions or negotiations in the Request for Proposals, in which case the City has completed all rounds of discussions or negotiations.

4. Competitive Simultaneous Negotiations. If the City chooses to conduct Competitive Negotiations, the City may negotiate simultaneously with competing Proposers. The City:

a. Shall treat all Proposers fairly and shall not favor any Proposer over another;

b. May disclose other Proposer’s Proposals or the substance of negotiations with other Proposers only if the City notifies all of the Proposers with whom the City will engage in negotiations of the City’s intent to disclose before engaging in negotiations with any Proposer.

5. Any oral modification of a Proposal resulting from negotiations under this section shall be reduced to Writing by the Proposer.

D. Best and Final Offers. If best and final Offers are required, the City shall establish a common date and time by which Proposers must submit best and final Offers. Best and final Offers shall be submitted only once; provided, however, the City may make a Written determination that it is in the City’s best interest to conduct additional discussions, negotiations or change the City’s requirements and require another submission of best and final Offers. Otherwise, no discussion of or changes in the best and final Offers shall be allowed prior to Award. Proposers shall also be informed if they do not submit notice of withdrawal or another best and final Offer, their immediately previous Offer will be construed as their best the final Offer. The City shall evaluate Offers as modified by the best and final Offer. The City shall conduct evaluations conducted as described in PCC Section 5.33.610. The City shall not modify evaluation factors or their relative importance after the date and time that best and final Offers are due.

A. General. The City may procure Goods and Services by using multi-step Competitive Sealed Proposals pursuant to ORS 279B.060 (6)(b)(G).

B. Phased Process. The use of Multi-step Proposals is a phased process that seeks necessary information, or un-priced technical Proposals, in the initial phase and regular competitive sealed Proposals, inviting Offerors who submitted technically acceptable Proposals in the initial phase, to submit competitive sealed price Bids on the technical Proposals in the second or subsequent phases. The Contract shall be Awarded to the Responsible Proposer submitting the most Advantageous Proposal in accordance with the terms of the Solicitation Document applicable to the final phase. If time is a factor, the City may require Proposers to submit a separate sealed price Proposal during the initial phase to be opened after the technical evaluation.

C. Public Notice. Whenever multi-step sealed Proposals are used, Public Notice for the first phase shall be given in accordance with PCC Section 5.33.300. Public Notice is not required for the second or subsequent phases. However, the City shall give notice of the subsequent phases to all Proposers and inform any Proposers excluded from the subsequent phases of the right, if any, to protest exclusion pursuant to PCC Section 5.33.720.

1. Form. Multi-step sealed Proposals shall be initiated by the issuance of a Request for Proposal in the form and manner required for competitive sealed Proposals except as provided by this rule. In addition to the requirements set forth in PCC Section 5.33.215, the multi-step Request for Proposal shall state:

b. whether price Proposals are to be submitted at the same time as un-priced technical Proposals; that if they are, such price Proposals shall be submitted in a separate sealed envelope;

c. that the Solicitation is a multi-step sealed Proposal Procurement, and priced Proposals will be considered only in subsequent phases from those Proposers whose un-priced technical Proposals are found qualified in the first phase;

e. that the City, to the extent it finds necessary, may conduct oral or Written discussions of the un-priced technical Proposals;

f. that the Goods or Services being procured shall be furnished generally in accordance with the Proposer’s technical Proposal as found to be finally qualified and shall meet the requirements of the Request for Proposals; and

g. whether Proposers excluded from subsequent phases have a right to protest the exclusion. Such information can be given or changed through Addenda.

2. Addenda to the Request for Proposal. After receipt of un-priced technical Proposals, Addenda to the Request for Proposal shall be distributed only to Proposers who submitted un-priced technical Proposals.

3. Receipt and Handling of Un-priced Technical Proposals. Un-priced technical Proposals need not be opened publicly.

4. Evaluation of Un-Priced Technical Proposals. The un-priced technical Proposals submitted by Proposers shall be evaluated solely in accordance with the criteria set forth in the Request for Proposal. The un-priced technical Proposals shall be categorized as:

b. Potentially qualified; that is, reasonably susceptible of being made qualified; or

c. Unqualified. The City shall record in Writing the basis for finding a Proposal unqualified and make it part of the Procurement file. The City may initiate phase two of the procedure if, in the City’s opinion, there are sufficient qualified or potentially qualified un-priced technical Proposals to assure effective price competition in the second phase without technical discussions. If the City finds that such is not the case, the City may issue an Addendum to the Request for Proposal or engage in technical discussions as set forth in Phase One above, or take any other action permitted by these rules.

5. Discussion of Un-priced Technical Proposals. The City may seek clarification of a technical Proposal of any Proposer who submits a qualified, or potentially qualified, technical Proposal. During the course of such discussions, the City shall not disclose any information derived from one un-priced technical Proposal to any other Proposer. Once discussions are begun, any Proposer who has not been notified that its Proposal has been found unqualified may submit supplemental information amending its technical Proposal at any time until the Closing date and time established by the City. Such submission may be made at the request of the City or upon the Proposer’s own initiative.

6. Notice of Unqualified Un-priced Technical Proposal. When the City determines a Proposer’s un-priced technical Proposal to be unqualified, such Proposer shall not be afforded an additional opportunity to supplement its technical Proposals.

7. Mistakes During Multi-Step Sealed Proposals. Mistakes may be corrected or Proposals may be withdrawn during Phase One:

c. when responding to any Addendum issued in regard to the Request for Proposals; or

a. open the price Proposals submitted in Phase One (if prices were required to be submitted) from Proposers Offeror whose un-priced technical Proposals were found to be qualified; or

b. if price Proposals have not been submitted, technical discussions have been held, or Addenda to the Request for Proposals have been issued, invite each qualified Proposer to submit price Proposals.

2. Conduct. Phase two shall be conducted as any other competitive sealed Procurement except:

b. No public notice need be given of the request to submit price Proposals because such notice was previously given.

A. The City may Award a Public Contract as a Special Procurement pursuant to the requirements of this section, which permits class Special Procurements. Such Procurements allow the City to enter into a series of Contracts over time pursuant to the authorization provided in regard to the Special Procurement and without necessarily following the requirements of Competitive Sealed Bidding, Competitive Sealed Proposals or Intermediate Procurements.

B. For purposes of PCC Section 5.33.220 the following definitions are applicable:

1. “Class Special Procurement” means a contracting procedure that differs from the procedures described in PCC Sections 5.33.180, 5.33.190, 5.33.200 and 5.33.210 and is for the purpose of entering into a series of contracts over time for the acquisition of a specified class of Goods or Services.

2. “Contract-Specific Special Procurement” means a contracting procedure that differs from the procedures described in PCC Sections 5.33.180, 5.33.190, 5.33.200 and 5.33.210 and is for the purpose of entering into a single Contract or a number of related Contracts for the acquisition of specified Goods or Services on a one-time basis or for a single project.

3. “Special Procurement” means, unless the context requires otherwise, a class special Procurement, a contract-specific special Procurement or both.

1. Manufacturer Direct Supplies: The City may purchase goods directly from a manufacturer if a large volume purchase is required and the cost from the manufacturer is the same or less than the cost the manufacturer charges to its distributor(s). Procurements of this type are made on a Contract-by-Contract basis and are not Price Agreements.

2. Advertisements: Except as provided by City Charter Section 8-101, the City may purchase advertising in newspapers and Written publications.

3. Copyrighted Materials: The City may purchase copyrighted materials where there is only one known supplier available for such goods. This includes, but is not limited to, new books, periodicals, curriculum materials, reference materials, audio and visual media, and non-mass marketed software from a particular publisher or its designated distributor.

4. Financial Products: The City may directly purchase financial products such as bond insurance, surety bonds for City bond reserves and liquidity facilities such as letters of lines of credit.

5. Employee Benefit Contracts: Contracts relating to employee benefits may be Awarded directly to a Contractor after the City obtains a consultant pursuant to PCC Chapter 5.68 to conduct a competitive process to acquire such contractors. Such contracts include administrators of employee Flexible Spending Account Administration and Medical Claims Third Party Administration. The City will hire a consultant to advise it on firms available to provide the Work and the consultant is authorized to solicit firms pursuant to a Request for Proposal process as well as assist the City in placing advertisements in specific publications likely to reach the attention of such contractors. The City may then negotiate or enter into the Contract that appears most Advantageous to the City without further advertisement or issuance of its own Request for Proposals.

6. Insurance Contracts: Contracts for insurance, including Employee Benefit insurance, may be Awarded directly to an insurer after the City obtains Proposals from an insurance consultant. The consultant shall be selected pursuant to PCC Chapter 5.68. Among the services to be provided by the consultant is the securing of competitive Proposals from insurance carriers for all coverages for which the insurance consultant is given responsibility and advice to the City about the costs and benefits of the various Proposals. The City may then negotiate or enter into the insurance Contract that appears most Advantageous to the City without advertisement or issuance of its own Request for Proposals.

7. Purchase of Used Personal Property or Equipment: The City may directly purchase used personal property and equipment. Used property and used equipment is property or equipment that has been placed in use by a previous owner or user for a period of time, and which is recognized in the relevant trade or industry, if there is one, as qualifying the personal property or equipment as “used”. Used personal property or equipment generally does not include property or equipment if the City was the previous user, whether under a lease, as part of a demonstration, trial or pilot project or similar arrangement.

8. Hazardous Material Removal and Oil Clean-up. The City may directly purchase services to remove or clean up hazardous material or oil from any vendor when ordered to do so by the Oregon Department of Environmental Quality pursuant to its authority under ORS Chapter 466. In doing so, the following conditions apply:

a. To the extent reasonable under the circumstances, encourage competition by attempting to obtain informal price quotations or Proposals from potential suppliers of Goods and Services;

b. The Bureau responsible for managing or coordinating the clean-up shall submit a Written description of the circumstances that require it and a copy of the DEQ order for the cleanup to the Bureau of Purchases together with a requisition authorizing the Contract.

c. The Bureau of Purchases shall record whether there was time for competition, and, if so, the measures taken to encourage competition, the amount of the price quotations obtained, if any, and the reason for selecting the Contractor to whom Award is made; and

d. The timeline for cleanup does not permit the use of intermediate Procurement procedures.

9. Amendments to Contracts and Price Agreements: The City may execute Contract amendments, as follows:

b. Unit prices or “add alternates” were provided in the Solicitation Document that established the cost basis for the additional Work or product or in a lump sum Contract the Contractor has provided an estimate of the additional cost which has been verified by the Bureau seeking the amendment; and

d. Emergency: The original Contract was let pursuant to a declaration of Emergency, in accordance with PCC Section 5.33.130; or

e. Unplanned Environmental Cleanup: The additional Work is required by reason of existing regulations or ordinances of federal, state or local agencies, dealing with the prevention of environmental pollution and the preservation of natural resources, that affect performance of the original Contract and such regulations or ordinances either were not cited in the original Contract or were enacted or amended after submission of the successful Bid or Proposal.

a. Authorization. The City may renegotiate and amend existing Contracts with incumbent Contractors only if it is in the best interest of the City.

b. Process and Criteria. The City may renegotiate various items of the Contract, including but not limited to: price, term, delivery and shipping, order size, item substitutions, warranties, discounts, on-line ordering systems, price adjustments, product availability, product quality, and reporting requirements. The City must meet the following conditions in its Renegotiations with incumbent Contractors:

(1) Favorable Result. The City must determine that, with all things considered, the renegotiated Contract is at least as favorable to the City as the Original Contract and document this in the Procurement File. For example, the City and the Contractor may adjust terms and conditions within the Original Contract to meet different needs;

(2) Within the Scope. The Supplies and Services provided under the renegotiated Contract must be reasonably related to the Original Contract’s Solicitation. For example, the City may accept functionally equivalent substitutes for any Supplies and Services in the Original Contract’s Solicitation.

(3) Optional Term or Condition. If a Contractor offered to the City during the original Solicitation a term or condition that was rejected at that time, the City may not renegotiate for a lower price based on this rejected term or condition as a mandatory term or condition in the renegotiated Contract. If, however, a Contractor offers a lower price pursuant to a rejected term or condition without additional consideration from the City and as only an option to the City, then the City may accept the option of a lower price under the rejected term or condition. For example, if the City initially rejected a Contractor’s proposed condition that the price required a minimum order, any renegotiated Contract may not mandate this condition; but the City may agree to the option to order lesser amounts or receive a reduced price based upon a minimum order; and

(4) Market. In order to avoid encouraging favoritism or diminishing competition, the City may research the accepted competitive practices and expectations of Offerors within the market for the specific Contract(s) or Classes of Contracts to be renegotiated (Market Norm). If the City researches the Market Norm, then the City must document its results in the Procurement File. Based upon this information, the City shall confirm that, if the City follows the Market Norm, favoritism is not likely to be encouraged, competition is not likely to be diminished, and substantial cost savings may be realized. Under no condition may the City accept or follow any Market Norm that likely encourages favoritism or diminishes competition, even if it is accepted or expected in the market.

11. Reverse Auctions, pursuant to the process established in PCC Section 5.33.350.

12. Software and Hardware Maintenance and Upgrades. The City may directly enter into a Contract or renew existing Contracts for information technology hardware or software maintenance and upgrades without Competitive Solicitation where the maintenance and upgrades are either available from only one source or, if available from more than one provider, are obtained from the City's current provider in order to utilize the pre-existing knowledge of the vendor regarding the specifics of the City's hardware or software system. The City shall document in the Procurement File the facts that justify either that maintenance and upgrades were available from only one source or, if from more than one source, from the current vendor.

D. Notice. The City shall give Public Notice of its approval of an Individual or Class Special Procurement on its website as provided in PCC Section 5.33.300 A.3. The Public Notice shall describe the Goods or Services or class of Goods or Services to be acquired through the Special Procurement. If the Special Procurement leads to a Solicitation Document, then the City will post a Notice of Intent to Award the contract pursuant to PCC Section 5.33.650.

E. If the City plans to conduct a competitive special Procurement, it shall give notice of intent to Award to all prequalified Offerors who sought the Award of a Contract in the manner provided for competitive sealed Bids.

A. Notice and Solicitation Fee. The City shall furnish public notice of every Solicitation Document in accordance with PCC Section 5.33.300 B. The City may give additional notice using any method it determines appropriate to foster and promote competition, including:

1. Mailing notice of the availability of Solicitation Document to Persons that have expressed an interest in the City’s Solicitations; or

2. Placing Notice on the Oregon Department of Administrative Services’ Electronic Procurement System known as “ORPIN” (Oregon Procurement Information Network) or a successor Electronic system; or

B. Advertising. The City shall advertise every notice of a Solicitation Document as follows:

1. The City shall publish the advertisement for Offers in accordance with the requirements of ORS 297.055(4)(a) an d(b); or

2. Because the City finds that it would be cost effective to Electronically post notice of Bids and Proposals, the City may publish the advertisement for Offers by Electronic Advertisement in accordance with the requirements established by PCC Section 5.33.340.

c. The interval between the first date of notice of the Solicitation Document given in accordance with PCC Section 5.33.300 B. and Closing which shall not be less than fourteen (14) Days for an Invitation to Bid and 21 Days for a Request for Proposals, unless the City determines that shorter interval is in the public’s interest, and that a shorter interval will not substantially affect competition. However, in no event shall the interval between the first date of notice of the Solicitation Document given in accordance with PCC Section 5.33.300 B. and Closing be less than seven (7) Days as set forth in PCC Section 5.33.200. The City shall document the specific reasons for the shorter public notice period in the Procurement file;

d. The date that Persons must file applications for Prequalification if Prequalification is a requirement and the class or classes of Goods or Services for which Persons must be prequalified;

e. The office where Contract terms, conditions and Specifications may be reviewed;

f. The name and title of the person designated for the receipt of Bids and the person designated by the City as the contact person for the Procurement, if different;

C. Posting Advertisement for Offers. The City shall post a copy of each advertisement for Offers at the Bureau of Purchases. An Offeror may obtain a copy of the advertisement for Offers upon request.

D. The City may charge a fee or require a deposit for the Solicitation Document.

E. The City shall provide potential Offerors notice of any Addendum to a Solicitation Document in accordance with PCC Section 5.33.430.

B. The City may consult with technical experts, suppliers, prospective Contractors and representative of the industries with which the City will Contract. The City shall take reasonable measure to ensure that no person who prepares or assists in the preparation of Solicitation Documents, Specifications, plans or Scopes of Work (collectively, “documents”), and that no business with which the person is associated realizes a material competitive advantage in a Procurement that arises from the City’s use of those documents.

C. A “brand name or equal” Specification may be used when it is Advantageous to the City. The brand name describes the standard of quality, performance, functionality and other characteristics of the product needed by the City. The City’s determination of what constitutes a product that is equal or superior to the product specified is final. Unless otherwise specified, the use of a brand name shall mean “brand name or equal.”

D. A “brand name” Specification may be used requiring a Contractor to provide a specific brand only if the Purchasing Agent, or designee, makes a Written determination finding that the brand name will meet one or more of the following needs:

1. The use of a brand name Specification is unlikely to encourage favoritism in the Awarding of a Public Contract or substantially diminish competition for Public Contracts; or

2. The use of a brand name Specification would result in a substantial cost savings to the City; or

3. There is only one manufacturer or seller of the product of the quality, performance or functionality required; or

4. Efficient utilization of existing goods requires the acquisition of compatible Goods or Services.

E. The City's use of a brand name specification is subject to protest and review only as provided in PCC Section 5.33.730.

A. Offer and Acceptance. A Bid, Proposal or Price Quotation is an Offer to enter into a Contract. The Offer is a “Firm Offer,” i.e., the Offer shall be held open by the Offeror for the City’s acceptance for the period specified in PCC Section 5.33.495. The City’s Award of the Contract constitutes acceptance of the Offer and binds the Offeror to the Contract.

B. Responsive Offer. The City may Award a Contract only to a Responsible Offeror with a Responsive Offer.

C. Contingent Offers. Except to the extent an Offeror is authorized to propose certain terms and conditions pursuant to PCC Section 5.33.215 a Proposer shall not make its Offer contingent upon the City’s acceptance of any terms or conditions (including Specifications) other than those contained in the Solicitation Document.

D. Offeror’s Acknowledgment. By signing and returning the Offer, the Offeror acknowledges it has read and understands the terms and conditions contained in the Solicitation Document and that it accepts and agrees to be bound by the terms and conditions of the Solicitation Document. If the Request for Proposals permits alternative terms under PCC Section 5.33.215, the Proposal includes the nonnegotiable terms and conditions and any proposed terms and conditions offered for negotiation upon and to the extent accepted by the City in Writing.

A. City Authorization. The Purchasing Agent may authorize Offerors to submit Facsimile Offers. If the City determines that a Bid or Proposal Security is or will be required, the City should not authorize Facsimile Offers unless the City has another method for receipt of such security. Prior to authorization, the City must determine whether the City’s equipment and personnel are capable of receiving the size and volume of anticipated Offers within a short period of time and establish administrative procedures and controls:

1. For receiving, identifying, recording, and safeguarding Facsimile Offers, and

B. Provisions To Be Included in Solicitation Document. In addition to all other requirements, if the City authorizes a Facsimile Offer, the City will include in the Solicitation Document provisions substantially similar to the following:

1. A “Facsimile Offer,” as used in this Solicitation, means an Offer, modification of an Offer, or withdrawal of an Offer that is transmitted to and received by the City via a Facsimile machine.

2. Offerors may submit Facsimile Offers in response to the Solicitation. The entire response must arrive at the place and by the time specified in this Solicitation Document.

4. The City reserves the right to Award the Contract solely on the Facsimile Offer. However, upon the City’s request the apparently successful Offeror shall promptly submit its complete original Signed Offer.

5. The data and compatibility characteristics of the City’s receiving Facsimile machine as follows:

b. Compatibility characteristics, e.g., make and model number, receiving speed, communications protocol.

6. The City is not responsible for any failure attributable to the transmission or receipt of the Facsimile Offer including, but not limited to the following:

A. The City may conduct all phases of a Procurement, including without limitation the posting of Electronic Advertisements and the receipt of Electronic Offers, by Electronic methods if and to the extent the City specifies in a Solicitation Document, a request for quotes, or any other Written instructions on how to participate in the Procurement.

B. The City shall open an Electronic Offer in accordance with Electronic security measures in effect at the City at the time of its receipt of the Electronic Offer. Unless the City provides procedures for the secure receipt of Electronic Offers, the Person submitting the Electronic Offer assumes the risk of premature disclosure due to submission in unsealed form.

C. The City’s use of Electronic Signatures shall be consistent with applicable statutes and rules. The Purchasing Agent may limit the use of Electronic methods of conducting a Procurement as Advantageous to the City.

D. If the City determines that Bid or Proposal Security is or will be required, the Purchasing Agent will not authorize Electronic Offers unless the City has another method for receipt of such security.

E. Rules Governing Electronic Procurements. The City shall conduct all portions of an Electronic Procurement in accordance with these rules, unless otherwise set forth in this rule.

F. Preliminary Matters. As a condition of participation in an Electronic Procurement the Purchasing Agent may require potential Contractors to register with the City before the date and time on which the City will first accept Offers, to agree to the terms, conditions, or other requirements of a Solicitation Document, or to agree to terms and conditions governing the Procurement, such as procedures that the City may use to attribute, authenticate or verify the accuracy of an Electronic Offer, or the actions that constitute an Electronic Signature.

G. Offer Process. The Purchasing Agent may specify that Persons must submit an Electronic Offer by a particular date and time, or that Persons may submit multiple Electronic Offers during a period of time established in the Electronic Advertisement. When the Purchasing Agent specifies that Persons may submit multiple Electronic Offers during a specified period of time, the City must designate a time and date on which Persons may begin to submit Electronic Offers, and a time and date after which Persons may no longer submit Electronic Offers. The date and time after which Persons may no longer submit Electronic Offers need not be specified by a particular date and time, but may be specified by a description of the conditions that, when they occur, will establish the date and time after which Persons may no longer submit Electronic Offers. When the City will accept Electronic Offers for a period of time, then at the designated date and time that the City will first receive Electronic Offers, the City must begin to accept “real time” Electronic Offers on the City’s’ Electronic Procurement System, and shall continue to accept Electronic Offers in accordance with 5.33.340 H.2 until the date and time specified by the City, after which the City will no longer accept Electronic Offers.

1. When the City conducts an Electronic Procurement that provides that all Electronic Offers must be submitted by a particular date and time, the City shall receive the Electronic Offers in accordance with these rules.

2. When the City specifies that Persons may submit multiple Offers during a period of time, the City shall accept Electronic Offers, and Persons may submit Electronic Offers, in accordance with the following:

a. Following receipt of the first Electronic Offer after the Day and time the City first receives Electronic Offers the City shall post on the City’s Electronic Procurement System, and updated on a real time basis, the lowest Electronic Offer price or the highest ranking Electronic Offer. At any time before the date and time after which the City will no longer receive Electronic Offers, a Person may revise its Electronic Offer, except that a Person may not lower its price unless that price is below the then lowest Electronic Offer.

b. A Person may not increase the price set forth in an Electronic Offer after the Day and time that the City first accepts Electronic Offers.

c. A Person may withdraw an Electronic Offer only in compliance with these rules. If a Person withdraws an Electronic Offer, it may not later submit an Electronic Offer at a price higher than that set forth in the withdrawn Electronic Offer.

I. Failure of the E-Procurement System. In the event of a failure of the City’s Electronic Procurement System that interferes with the ability of Persons to submit Electronic Offers, protest or to otherwise participate in the Procurement, the City may cancel the Procurement in accordance with PCC Section 5.33.660, or may extend the date and time for receipt of Electronic Offers by providing notice of the extension immediately after the Electronic Procurement System becomes available.

A. Conditions for use. When the City determines that online Solicitation is an Advantageous Procurement method, a Public Contract may be entered into by competitive online Bidding, subject to the provisions of Competitive Sealed Bidding or Competitive Sealed Proposals.

B. Offer process. The Solicitation must designate both an Opening date and time and a Closing date and time. The Closing date and time need not be a fixed point in time, but may remain dependant on a variable specified in the Solicitation. At the Opening date and time, the City must begin accepting real time Electronic Offers. The Solicitation must remain open until the Closing date and time. The City may require Offerors to register before the Opening date and time and, as a part of that registration, to agree to the terms, conditions, or other requirements of the Solicitation. Following receipt of the first Offer after the Opening date and time, the lowest Offer price or, if Proposals are accepted, the ranking of each Proposer, must be posted Electronically to the Internet and updated on a real time basis. At any time before the Closing date and time, an Offeror may lower the price of its Offer or revise its Proposal except that after Opening date and time, an Offeror may not lower its price unless that price is below the then lowest Offer. Offer prices may not be increased after Opening. Except for Offer prices, Offers may be modified only as otherwise allowed by these rules or the Solicitation Document. An Offer may be withdrawn only in compliance with these rules. If an Offer is withdrawn, no later Offer submitted by the same Offeror may be for a higher price. If the lowest Responsive Offer is withdrawn after the Closing date and time, the City may cancel the Solicitation or reopen the Solicitation to all pre-

existing Offerors by giving notice to all pre-existing Offerors of both the new Opening date and time and the new Closing date and time. Notice that Electronic Solicitation will be reopened must be given as specified in the Solicitation Document.

C. Failure of the Electronic Procurement System. In the event of a failure of the Electronic Procurement System that interferes with the ability of Offerors to submit Offers, protest, or to otherwise meet the requirements of the Procurement, the City may cancel the Solicitation or may extend the Solicitation by providing notice of the extension immediately after the System becomes available.

(Amended by Ordinance No. 179802, effective December 7, 2005.) Every Public contract shall contain the conditions required by ORS 279B.220, 225, 230 and 235.

A. Instructions. An Offeror shall submit and Sign its Offer in accordance with the Solicitation Document. Unless otherwise instructed, or unless Electronic Offers are permitted, signatures shall be in ink. An Offeror shall initial and submit any correction or erasure to its Offer prior to the Opening in accordance with the requirements for submitting an Offer under the Solicitation Document.

B. Forms. An Offeror shall submit its Offer on the form(s) provided in the Solicitation Document, unless an Offeror is otherwise instructed in the Solicitation Document.

C. Documents. An Offeror shall provide the City with all documents and Descriptive Literature required under the Solicitation Document. If the Solicitation Document instructs Offerors not to include documents or literature, such as warranty provisions, the City is entitled to disregard those documents in determining whether the Offer is responsive to the City’s request.

D. Electronic Submissions. If the Solicitation Document permitted Electronic Offers under PCC Section 5.33.340 an Offeror may submit its Offer Electronically. The City shall not consider Electronic Offers unless authorized by the Solicitation Document.

A. Offer Security, not to exceed 10 percent of the Offer, is not required for Contracts other than Public Improvement Contracts unless the Purchasing Agent determines otherwise. If required, the purpose of Offer Security is to guarantee acceptance of the Award of the Contract. This requirement shall be stated in the Solicitation Document.

B. The Purchasing Agent may require Offer Security from any Offeror, even if the City has exempted a class of Solicitations from Offer Security.

C. The Offer Security shall be forfeited if the Offeror fails to execute the Contract promptly and properly after the City has Awarded the Contract, unless the Purchasing Agent determines forfeiture is not in the City’s best interest.

E. Return of Offer Security. The Offer Security of all unsuccessful Offerors shall be returned or released after a Contract has been executed and evidence of insurance and a performance bond provided (if insurance or performance bond is required by the Solicitation Document), or after all Offers have been rejected. The City may return the Offer Security of unsuccessful Offerors after Opening, but prior to Award, if the return does not prejudice Contract Award and provided that the security of at least the two lowest Bidders, or the two highest scoring Proposers, is retained pending the Award and execution of a Contract.

F. Form of Bid or Proposal security. The City may accept only the following forms of Bid or Proposal security:

1. A surety bond, signed by the surety’s authorized Attorney in Fact, that is authorized to do business in the State of Oregon and is duly listed in the United States Treasury list as published in the Federal Register, or is otherwise approved by the City Attorney. The surety company’s seal shall be affixed to the bond and a Power of Attorney for the Attorney in Fact shall be submitted. The City Attorney has the authority to waive the requirement of corporate seal; or

2. A signed irrevocable letter of credit issued by an insured institution as defined in ORS 706.008(12); or

4. An annual surety bond filed with the City (except for Public Improvement Contracts) that meets all the requirements of PCC Section 5.33.410 F.1. above.

A. Purpose. The City may hold pre-Offer conferences with prospective Offerors prior to Closing, to explain the Solicitation requirements, obtain information, or to conduct site inspections.

B. Required Attendance. The City may require attendance at the pre-Offer conference as a condition for making an Offer. A prospective Offeror who fails to attend a mandatory conference is not eligible to make an Offer. If an Offer is made it will be rejected as nonresponsive.

C. Scheduled Time. If the City holds a pre-Offer conference, it shall be held within a reasonable time after the Solicitation Document has been issued, but sufficiently before the Closing to allow Offerors to consider information provided at that conference.

D. Statements Not Binding. Statements made by a City representative at the pre-Offer conference or elsewhere about the proposed Contract or Solicitation Document do not change the Solicitation Document unless the Bureau of Purchases confirms such statements with a Written Addendum to the Solicitation Document.

E. City Announcement. The City must set forth notice of any pre-Offer conference in the Solicitation Document in accordance with PCC Section 5.33.300.

A. Issuance; Receipt. A Solicitation Document may be changed only by a Written Addendum. An Offeror shall provide Written acknowledgment of receipt of all issued Addenda with its Offer, unless the City otherwise specifies in the Addenda or Solicitation Document. If an Offeror submits an Offer and the Solicitation Document states that the Offeror is bound by all Addenda published in accordance with these rules, then the Offeror shall be bound to the terms contained in all Addenda so issued.

B. Notice and Distribution. The City shall notify prospective Offerors of Addenda consistent with the standards of Notice set forth in PCC Section 5.33.300. The Solicitation Document shall specify how the City will provide notice of Addenda and how the City will make the Addenda available. For example, the City may state: “City will not mail notice of Addenda, but will publish notice of any Addenda on City’s Web site. Addenda may be downloaded off the City’s Web site. Offerors should frequently check the City’s Web site until Closing, i.e., at least once weekly until the week of Closing and at least once daily during the week of the Closing.”

1. The City shall issue Addenda within a reasonable time to allow prospective Offerors to consider the information contained in the Addenda in preparing their Offers. The City should extend the Closing if the Purchasing Agent determines prospective Offerors need additional time to review and respond to Addenda. Except to the extent that the Purchasing Agent determines that the public interest requires it, the City shall not issue an Addendum less than 72 hours before the Closing unless the Addendum also extends the Closing. For purposes of computing this time, the Addendum shall be deemed issued to occur when it is first posted on the City’s web site or upon mailing, whichever is applicable. If both occur, the notification is complete when the first of these two events occur.

2. Notwithstanding PCC Section 5.33.430 C.1., an Addendum that modifies the evaluation criteria, selection process or procedure for any tier of competition under a multi-step sealed Bid or a multi-tiered or multi-step sealed Proposal issued in accordance with PCC Sections 5.33.205 and 5.33.210 through 5.33.217 must be issued no fewer than five (5) Days before the beginning of that tier or step of competition, unless the City determines that a shorter period is sufficient to allow Offerors to prepare for that tier or step of competition. The City shall document the factors it considered in making that determination, which may include, without limitation, the Scope of the changes to the Solicitation Document, the location of the remaining eligible Proposers, or whether shortening the period between issuing an Addendum and the beginning of the next tier or step of competition favors or disfavors any particular Proposer or Proposers.

D. Request for Change or Protest. Unless a different deadline is set forth in the Addendum, an Offeror must submit a Written request for change or protest to the Addendum, as provided in PCC Section 5.33.730, by the close of the City’s next business Day after issuance of the Addendum. The City shall consider only an Offeror’s request for change or protest to the Addendum; the City shall not consider a request for change or protest to matters not added or modified by the

Addendum. Notwithstanding any provision of this paragraph, the City is not required to provide a protest period for Addenda issued during a multi-tier or multi-step Procurement process conducted pursuant to PCC Section 5.33.200 or 5.33.210.

A. Time for submission of request for change. Unless otherwise provided in the Solicitation Document, an Offeror shall deliver any request for change of the Solicitation Document, Specifications or Contract provisions to the City in Writing within seven (7) Days prior to Bid or Proposal Closing. Requests for change in regard to Addenda shall be submitted in accordance within the time permitted by PCC Section 5.33.430 D.

B. Any request for change shall include a detailed statement of the legal and factual reasons for the request for change; any proposed changes to Specifications or Contract provisions; and a description of any prejudice to the Offeror; and, a statement of the form of relief requested. No request for change of the content of the Solicitation Document, Specifications or Contract provisions shall be considered after the deadline established for submitting such request. The City shall notify the Offeror if the City entirely rejects the request. If the City agrees with the request, in whole or in part, the City shall either issue an Addendum reflecting the change or cancel the Solicitation.

C. Extension of Closing date. If any request for change is timely received in accordance with these rules the Closing may be extended by the Purchasing Agent if it is determined that an extension is necessary to allow consideration of the request or issuance of any Addendum to the Solicitation Document.

D. Identification of request for change. Envelopes containing requests for change or protests of the Solicitation Document, Specifications or Contract provisions shall be marked with the following information:

E. A Proposer may request a change to add alternate terms and conditions for negotiation if the Solicitation Document permits negotiation. In this circumstance, the request for change procedure shall be governed by the Solicitation Document and PCC Section 5.33.215 C.

F. Clarification. Prior to the deadline for submitting a request for change, an Offeror may request in Writing that the City clarify any provision of the Solicitation Document or Contract. The City’s clarification, whether oral or in Writing, does not change the Solicitation Document or Contract and is not binding on the City unless the City amends the Solicitation Document or Contract by Written Addendum.

A. Product Samples and Descriptive Literature. Product Samples or Descriptive Literature may be required if it is necessary or desirable to evaluate the quality, features or characteristics of the offered items. The City will dispose of Product Samples, return, or make available for return, Product Samples to the Offeror in accordance with the Solicitation Document.

1. To ensure proper identification and handling, Offers shall be submitted in a sealed envelope appropriately marked or in the envelope provided by the City, whichever is applicable. If the City permits Electronic Offers in the Solicitation Document, the Offeror may submit and identify Electronic Offers in accordance with the Solicitation Document.

2. The City is not responsible for Offers submitted in any manner, format or to any delivery point other than as required in the Solicitation Document.

3. Receipt of Offers. The Offeror is responsible for ensuring the City receives its Offer at the Bureau of Purchases prior to the stated Closing time for Offers, regardless of the method used to submit or transmit the Offer. Offers not so received are late as provided in PCC Section 5.33.480 and shall be returned unopened. If a late Offer is opened inadvertently, the procedure provided by PCC Section 5.33.480 shall apply except the submission shall be returned to the Offeror.

A. Modifications. An Offeror may modify its Offer in Writing prior to the Closing. Unless otherwise provided in the Solicitation Document, any modifications shall be prepared on the Offeror’s letterhead, signed by an Authorized Representative of the Offeror, state that the new document supersedes or modifies the prior Offer and be submitted in a sealed envelope, appropriately marked. The City may accept modifications Electronically only if it has authorized Electronic submittal of the Offer in the Solicitation document. The Offeror shall mark the submitted modification as follows:

2. Solicitation Number or other identification as specified in the Solicitation Document.

1. An Offeror may withdraw its Offer by Written notice submitted on the Offeror’s letterhead, Signed by an Authorized Representative of the Offeror, delivered to the location specified in the Solicitation Document or to the Bureau of Purchases if no location is specified, and received by the specific location or to the Bureau of Purchases, as appropriate, prior to the time and date set for Closing.

2. The Offeror or Authorized Representative of the Offeror may withdraw its Offer in person prior to the Closing, upon presentation of appropriate identification and satisfactory evidence of authority. Because of the chance for error or misidentification, the City reserves the right to reject a purported withdrawal if in the judgment of the City, sufficient identification is not provided.

3. The City may release an unopened Offer withdrawn under PCC Section 5.33.460 B.1. to the Offeror or its Authorized Representative, after voiding any date and time stamp mark or otherwise by appropriately marking the envelope in which the Offer was received.

b. Solicitation Number or other identification as specified in the Solicitation Document.

c. Documentation. The City shall include all documents relating to the modification or withdrawal of Offers in the appropriate Solicitation file.

A. Receipt. The Bureau of Purchases shall Electronically or mechanically time-stamp or hand-mark each Offer and any modification upon receipt. The Offer or modification shall not be opened, but shall be stored in a secure place until Opening. If an Offer or modification is inadvertently opened prior to the Opening, the City shall reseal and store the opened Offer or modification for Opening. That action shall be documented and placed in the appropriate Solicitation file. (E.g. “City inadvertently opened the Offer due to improper identification of the Offer.”)

B. Opening and recording. Offers shall be opened publicly, including any modifications made to the Offer pursuant to PCC Section 5.33.460.

1. In the case of Invitations to Bid, to the extent practicable, the name of each Bidder shall be read aloud as well as the Bid price(s), and such other information as the City considers appropriate.

2. In the case of Requests for Proposals, the City will not read Proposals aloud, but will only disclose the name of each Proposer.

C. Availability. After Opening, Offers will be available for public inspection except for those portions of an Offer that the Offeror designates as trade secrets or as confidential proprietary data in accordance with applicable law. See ORS 192.501(2); ORS 646.461 to 646.475.

1. To the extent such designation is not in accordance with applicable law, the City shall make those portions available for public inspection. The Offeror shall separate information designated as confidential from other non-confidential information at the time of submitting its Offer.

2. Prices, makes, model or catalog numbers of items offered, scheduled delivery dates, and terms of payment are not confidential, and shall be publicly available regardless of an Offeror’s designation to the contrary. The Purchasing Agent may determine the appropriate charge to be paid for copies made pursuant to public records requests and may request payment for such copies before they are released.

3. Notwithstanding anything contrary above, the City is not required to disclose the contents of Proposals until after the City posts a Notice of Intend to Award pursuant to PCC Section 5.33.650.

A. Any Offer received after Closing is late. An Offeror’s request for withdrawal or modification of an Offer received after Closing is late. The City shall not consider late Offers, withdrawals or modifications

B. For manual submissions of Offers, the Bureau of Purchases’ time clock shall be the clock of record and the date and time imprint of that clock on an Offer shall determine the timeliness of the submission. Late manual submissions shall be returned to the Offeror unopened with a copy of the envelope containing the Bureau’s time stamp on the Offer retained for the Solicitation file

C. For Electronic submissions, when permitted, the time shown by the City as to the date of arrival of the Electronic submission shall determine the timeliness of the submission. Late Electronic submissions shall be deleted from the City’s files, returned Electronically to the Offeror and the time of the submission and the time of return shall be documented in the Solicitation file.

D. For Facsimile submissions, when permitted, the time recorded at the top of the last page of the submission shall determine the timeliness of the submission. Late Facsimile transmissions shall be returned to the Offeror after keeping a copy of the last page of the transmission for the Solicitation file.

E. Failure to properly return or dispose of a late submission does not mean an Offer or submission arrived on time.

A. General. To protect the integrity of the competitive Solicitation process and to assure fair treatment of Offerors, the City should carefully consider whether to permit a waiver, correction or withdrawal for certain mistakes.

B. Treatment of Mistakes. The City shall not allow an Offeror to correct or withdraw an Offer for an error in judgment.

C. If the City discovers certain nonjudgmental mistakes in an Offer after Opening, but before Award of the Contract, the City may waive, or permit an Offeror to correct, a minor informality. A minor informality is a matter of form rather than substance that is evident on the face of the Offer, or an insignificant mistake that can be waived or corrected without prejudice to other Offerors. Examples of minor informalities include an Offeror’s failure to:

1. Return the correct number of Signed Offers or the correct number of other documents required by the Solicitation Document;

2. Sign the Offer in the designated block, provided a Signature appears elsewhere in the Offer, evidencing an intent to be bound;

3. Acknowledge receipt of an Addendum to the Solicitation Document, provided it is clear on the face of the Offer that the Offeror received the Addendum and intended to be bound by its terms;

4. The correction is not prejudicial to the interest of the public or the other Offerors.

D. The City may correct a clerical error if the intended Offer and the error are evident on the face of the Offer, or other documents submitted with the Offer, and the Offeror confirms the City’s correction in Writing. A clerical error is an Offeror’s error in transcribing its Offer. Examples include typographical mistakes, errors in extending unit prices, transposition errors, arithmetical errors, instances in which the intended correct unit or amount is evident by simple arithmetic calculations (for example a missing unit price may be established by dividing the total price for the units by the quantity of units for that item or a missing, or incorrect total price for an item may be established by multiplying the unit price by the quantity when those figures are available in the Offer). In the event of a discrepancy, unit prices shall prevail over extended prices.

E. The City may permit an Offeror to withdraw an Offer based on one or more clerical errors in the Offer only if the Offeror shows with objective proof and by clear and convincing evidence:

2. That the error is not a minor informality under this subsection or an error in judgment;

4. That the Offeror acted in good faith in submitting an Offer that contained the claimed error and in claiming that the alleged error in the Offer exists;

5. That the Offeror acted without gross negligence in submitting an Offer that contained a claimed error;

6. That the Offeror will suffer substantial detriment if the City does not grant it permission to withdraw the Offer;

7. That the City’s or the public’s interest has not changed so significantly that relief from the forfeiture will work a substantial hardship on the City or the public it represents; and

F. The criteria in PCC Section 5.33.490 E. shall determine whether the City will permit an Offeror to withdraw its Offer after Closing. These criteria also shall apply to whether the City will permit an Offeror to withdraw its Offer without forfeiture of its Bid Bond (or other Bid Security), or without liability to the City based on the difference between the amount of the Offeror’s Offer and the amount of the Contract actually Awarded by the City, whether by Award to the next lowest Responsive and Responsible Bidder or the best Responsive and Responsible Proposer, or by resort to issuing a new Solicitation.

G. Rejection for Mistakes. The City shall reject any Offer in which a mistake is evident on the face of the Offer and the intended correct Offer is not evident or cannot be substantiated from documents accompanying the Offer, i.e., documents submitted with the Offer.

A. An Offeror’s Offer is a Firm Offer, irrevocable, valid and binding on the Offeror for not less than 30 Days from Closing unless otherwise specified in the Solicitation Document. After 30 Days the Offer shall lapse unless extended. The extension may occur after the expiration of the 30-Day period.

B. An Offer may be extended beyond 30 Days if the Offeror and the City so agree. If agreement is reached the time period for extension shall be reduced to Writing and the Offer will remain valid, irrevocable and binding on the Offeror for the agreed-upon extension period.

A. Contracts shall be Awarded only to Responsible Offerors. Pursuant to ORS 279B.110, the City shall consider whether the Offeror has:

1. Available the appropriate financial, material, equipment, facility and personnel resources and expertise, necessary to indicate the capability of the prospective Offeror to meet all Contractual responsibilities;

2. A satisfactory record of performance. The City shall document the record of performance of a prospective Offeror if the City finds the prospective Offeror nonresponsible under this paragraph;

3. A satisfactory record of integrity. The City shall document the record of integrity of a prospective Offeror if the City finds the prospective Offeror nonresponsible under this paragraph;

4. Qualified legally to Contract with the City. The Bureau of Purchases may determine that such an Offeror is not legally qualified if:

b. The Offeror failed to make payments required by Title 7 of the City Code and has failed to make appropriate payment arrangements with the Bureau of Licenses within seven (7) Days of the receipt of a Bid or Proposal, unless the City waives that requirement and decides to pursue collection through retention of Contract funds, or through other means.

5. Supplied all necessary information in connection with the inquiry concerning responsibility. If a prospective Offeror fails to promptly supply information requested by the City concerning responsibility, the City shall base the determination of responsibility upon any available information or may find the prospective Offeror nonresponsible;

6. Not been debarred by the City under ORS 279B.130, PCC Section 5.33.530 or 5.33.540.

B. In the event the City determines an Offeror is not Responsible it shall prepare a Written determination of non-responsibility as required by ORS 279B.110.

A. City Bureaus may develop and maintain a qualified products list when it is necessary or desirable to test or examine goods before initiating a Procurement. “Goods” includes products that have associated or incidental service components, such as supplier warranty obligations or maintenance service programs.

B. When any Bureau begins the initial development of a qualified products list, the Purchasing Agent shall give public notice in accordance with PCC Section 5.33.300 of the opportunity for potential Contractors, sellers or suppliers to submit goods for testing and examination to determine their acceptability for inclusion on the list.

1. The Purchasing Agent may also solicit in Writing representative groups of potential Contractors, sellers or suppliers to submit goods for the testing and examination.

2. Any potential Contractor, seller, or supplier, even though not solicited, may offer its goods for consideration.

C. The determination of whether a particular good satisfies the Bureau’s needs is entirely within the Bureau’s sole discretion.

1. The Purchasing Agent shall determine the types of forms, the method of submitting applications and the information required to be a prequalified Offeror for Goods or Services.

2. Prospective Offerors shall submit the application on the form required by the Purchasing Agent.

3. Upon receipt of the application, the City shall investigate the prospective Offeror as necessary to determine whether the Prequalification should be granted.

4. If an early Prequalification decision is requested, the City shall make that decision in less than 30 Days, if practicable.

5. The Purchasing Agent shall notify prospective Offerors whether or not they have been prequalified If a prospective Offeror is not prequalified, the Purchasing Agent shall specify which of the standards of responsibility listed in PCC Section 5.33.500 the prospective Offeror failed to meet.

B. If the City determines that a prequalified Offeror is no longer qualified the Purchasing Agent may revoke or revise the Prequalification upon reasonable notice, except that a revocation or revision is invalid as to any Contract for which an advertisement for Bids or Proposals has already been issued.

C. Notwithstanding the prohibition against revocation of Prequalification generally in ORS 279B.120(3), the City may determine that a prequalified Offeror is not Responsible for any given Contract prior to Contract Award.

A. The City may Debar prospective Offerors pursuant to ORS 279B.130 and this rule.

B. The City may debar a prospective Offeror from consideration for City Contracts for a period up to three (3) years if:

1. The Offeror has been convicted of a criminal offense as an incident in obtaining or attempting to obtain a public or private Contract or Subcontract or in the performance of such Contractor or Subcontract;

2. The Offeror has been convicted under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property or any other offense indicating a lack of business integrity or business honesty that currently, seriously and directly affects the Offeror’s responsibility as a Contractor;

4. The Offeror has committed a violation of a Contract provision and debarment for such a violation was listed in the Contract terms and conditions as a potential penalty. A violation may include, but is not limited to, a failure to perform the terms of a Contract or an unsatisfactory performance in accordance with the terms of the Contract. However, a failure to perform or an unsatisfactory performance caused by acts beyond the control of the Contractor may not be considered to be a basis for debarment; or

5. The Offeror does not carry workers’ compensation or unemployment insurance as required by Oregon Law.

1. Issue a Written decision that states the reasons for the action taken and informs the Offeror of the appeal rights under ORS 279B.435 and PCC Section 5.33.760; and

D. Notwithstanding the limitation on the term for Debarment in ORS 279B.130(1)(b) and this rule, the City may determine that a previously Debarred Bidder or Proposer is not Responsible for a given Contract prior to Contract Award.

E. Imputed Knowledge. The City may attribute improper conduct of a Person or its affiliate having a Contract with a prospective Offeror to the prospective Offeror for purposes of debarment where the impropriety occurred in connection with the Person’s duty for or on behalf of, or with the knowledge, approval, or acquiescence of, the prospective Offeror.

F. Limited participation. The City may allow a Debarred Person to participate in solicitations and Public Contracts on limited basis during the Debarment period upon Written determination that participation is Advantageous to the City. The determination shall specify the factors on which it is based and define the extent of the limits imposed.

A. The City may disqualify or suspend a Person’s right to submit an Offer or to participate in a Contract (e.g., act as a Subcontractor) as follows:

1. For a DBE disqualification pursuant to ORS 200.065 the City may disqualify a Person upon finding that the Person engaged in any of the activities made unlawful by ORS 200.065, or if the Person has been disqualified by another Contracting Agency pursuant to ORS 200.065.

2. For a DBE disqualification pursuant to ORS 200.075, the City may suspend a Person upon finding that the Person engaged in any of the acts prohibited by ORS 200.075((a) through (c).

B. The City may disqualify or suspend a Person’s right to submit Offers or participate in Public Contract only for the length of time permitted by ORS 200.065 or ORS 200.075 as applicable.

C. The City shall notify the Person in Writing of proposed DBE Disqualification pursuant to this section, served personally or by registered or certified mail, return receipt requested. This notice shall:

3. Include a statement of the Person’s right to a hearing if requested in Writing within the time stated in the notice and that if the City does not receive the Person’s Written request for a hearing within the time stated, the Person shall have waived its right to a hearing;

4. Include a statement of the authority and jurisdiction under which the hearing will be held;

5. Include a reference to the particular sections of the statutes and rules involved;

D. The City shall schedule a hearing upon the City’s receipt of the Person’s timely request. The City shall notify the Person of the time and place of the hearing and provide information on the procedures, right of representation and other rights related to the conduct of the hearing prior to hearing.

E. The Purchasing Agent may conduct the hearing or refer the hearing to the Board of Appeals or the Portland City Council for decision. The decision of the Board of Appeals or Council shall be final, with no further appeal.

F. The City will notify the Person in Writing of its DBE Disqualification, served personally or by registered or certified mail, return receipt requested. Notification is effective, even if not served personally, if the City uses what its records show to be the last known address of the Person. The notice shall contain:

A. General. If a Contract is Awarded, the City shall Award the Contract to the Responsible Offeror submitting the lowest, Responsive Bid. The City may Award by item, groups of items or the entire Offer provided such Award is consistent with the Solicitation Document and in the public interest.

B. Multiple Items. An Invitation to Bid or Request for Proposal may call for pricing of multiple items of similar or related type with Award based on individual line item, group total of certain items, a “market basket” of items representative of the total requirement, or grand total of all items.

C. All or none Offers. All or none Bids or Proposals may be accepted if the evaluation shows an all or none Award to be the lowest cost of those submitted.

D. Clarification of Offers. After Opening, discussions may be conducted with apparent Responsive Offerors for the purpose of clarification to assure full understanding of the Offer. All Offers, in the City’s sole judgment, needing clarification shall be accorded such an opportunity. Clarification of any Offer must be documented in Writing by City and shall be included in the file.

E. Multiple Awards - Bids. If a Solicitation permits the Award of multiple Contracts, the City shall specify the criteria it shall use to choose from the multiple Contracts when purchasing Goods and Services. The criteria shall require the City to purchase the lowest priced goods or services available from the multiple Contracts. Multiple Awards shall not be made if a single Award will meet the City’s needs without sacrifice of economy or service. A multiple Award may be made if Award to two or more Offerors of similar products is necessary for adequate availability, delivery, service or product compatibility. Awards may not be made for the purpose of dividing the Solicitation, or to allow for user preference unrelated to utility or economy. A notice to potential Offeror that multiple Contracts may be Awarded for any Solicitation shall not preclude the Award of a single Contract for such Solicitation.

F. Multiple Awards – Proposals. If a Solicitation permits the Award of multiple Contracts, the City shall specify the criteria it shall use to choose from the multiple Contracts when purchasing Goods and Services. The criteria shall require the City to procure the goods or services that are most Advantageous to the City available from the multiple Contracts. Multiple Awards shall not be made if a single Award will meet the City’s needs without sacrifice of economy or service. A multiple Award may be made if Award to two or more Offerors of similar Goods or Services is necessary for adequate availability, delivery, service or product compatibility. Multiple Awards may not be made for the purpose of dividing the Solicitation, or to allow for user preference unrelated to obtaining the most Advantageous Contract. A notice to potential Offeror that multiple Contracts may be Awarded for any Solicitation shall not preclude the Award of a single Contract for such Solicitation.

G. Partial Awards. If after evaluation of competitive Offers, the City finds that a qualified Offer has been received for only parts of the requirements of the Solicitation:

1. A Contract may be Awarded for the parts of the Solicitation for which qualified Offers have been received.

2. All Offers may be rejected and a new Invitation to Bid or Request for Proposals on the same or revised terms, conditions and Specifications may be issued.

H. City Evaluation. The City shall evaluate an Offer only as set forth in the Solicitation Document and in accordance with applicable law. The City shall not evaluate an Offer using any other requirement or criterion.

I. Evaluation of Bids. The City shall evaluate Bids as set forth in ORS 279B.055(6)(a).

1. In evaluating Bids, the City shall apply the Contract preferences set forth in PCC Sections 5.33.625 through 5.33.635.

2. Low, Tied Offers. Low, tied Offers shall be resolved pursuant to PCC Section 5.33.625.

J. Evaluation of Proposals. The City shall evaluate Proposals as set forth in 279B.060(6) and PCC Section 5.33.210 and in the event of low, tied Proposals, in accordance with PCC Section 5.33.625.

K. Recycled Materials. In determining the most Advantageous Responsive Proposal the City shall give preference for recycled materials as set forth in ORS 279A.125 and PCC Section 5.33.635.

The City shall not negotiate with any Offeror in regard to the acquisition of Goods and Services if the Procurement was pursuant to an Invitation to Bid. This rule does not prevent the City from seeking a clarification of an Offer, provided the clarification does not change the Offer. This rule does not prohibit negotiation with a Proposer in response to a Request for Proposals provided the requirements of these rules have been met.

A. Award When Offers Identical. When the City receives Offers identical in price, fitness, availability and quality, and chooses to Award a Contract, the City shall Award the Contract based on the following order of precedence:

1. The City shall Award the Contract to the Offeror among those submitting identical Offers that is offering Goods or Services that have been manufactured or produced in Oregon.

2. If two or more Offerors submit identical Offers, and both offer Goods or Services manufactured or produced in Oregon, the City shall Award the Contract by drawing lots among the identical Offers offering Goods or Services that have been manufactured or produced in Oregon. The Offerors that submitted the identical Offers subject to the drawing of lots shall be given notice and an opportunity to be present when the lots are drawn.

The Offerors that submitted the identical Offers subject to the drawing of lots shall be given notice and an opportunity to be present when the lots are drawn.

B. Determining if Offers are Identical. The City shall consider Offers identical in price, fitness, availability and quality as follows:

1. Bids received in response to an Invitation to Bid issued under PCC Section 5.33.200 or ORS 279C.335 are identical in price, fitness, availability and quality if the Bids are Responsive, and offer the Goods or Services described in the Invitation to Bid at the same price.

2. Proposals received in response to a Request for Proposals issued under PCC Section 5.33.210, are identical in price, fitness, availability and quality if they are Responsive and achieve equal scores when scored in accordance with the evaluation criteria set forth in the Request for Proposals.

3. Proposals received in response to a Special Procurement conducted pursuant to PCC Section 5.33.220 are identical in price, fitness, availability and quality if, after completing the Contracting procedure approved by the City if the City determines, in Writing, that two or more Proposals are equally Advantageous to the City.

C. Determining if Goods or Services are Manufactured or Produced in Oregon. For the purposes of complying with PCC Section 5.33.625 A., the City may request in a Solicitation Document, following Closing, or at any other time determined appropriate by the City, any information it determines is appropriate and necessary to allow it to determine if the Goods or Services are manufactured or produced in Oregon. The City may use any reasonable criteria to determine if Goods or Services are manufactured or produced in Oregon, provided that the criteria reasonably relate to that determination, and provided that the same criteria applies equally to each Bidder or Proposer.

D. Procedure for Drawing Lots. In any instance when this Rule calls for the drawing of lots, the City shall draw lots by a procedure that affords each Offeror subject to the drawing a substantially equal probability of being selected, and that does not allow the person making the selection the opportunity to manipulate the drawing of lots to increase the probability of selecting one Offeror over another.

A. When evaluating Bids pursuant to PCC Section 5.33.610, the City shall add a percentage increase to the Bid of a Nonresident Bidder equal to the percentage, if any, of the preference that would be given to that Bidder in the state in which the Bidder resides.

B. The City shall rely on the list prepared and maintained by the Oregon Department of Administrative Services pursuant to ORS 279A.120(4) to determine both (i) whether the Nonresident Bidder’s state gives preference to in-state Bidders, and (ii) the amount of such preference.

A. Notwithstanding provisions of law requiring the City to Award a Contract to the lowest Responsible Bidder or best Proposer or provider of a quotation, and subject to PCC Section 5.33.635 B., the City shall give preference to the Procurement of goods manufactured from recycled materials.

B. In comparing goods from two or more Bidders or Proposers, and at least one Bidder or Proposer offers goods manufactured from recycled materials, and at least one Bidder or Proposer does not, the City shall select the Bidder or Proposer offering goods manufactured from recycled materials if each of the following four (4) conditions exists:

3. The recycled product can be substituted for a comparable non-recycled product; and

4. The recycled product’s costs do not exceed the costs of non-recycled products by more than five (5) percent, or a higher percentage if a Written determination is made by the City and set forth in the Solicitation Document. For purposes of making the foregoing determination, the City shall consider the costs of the goods following any adjustments the City makes to the price of the goods for purposes of evaluation pursuant to PCC Section 5.33.610.

C. For the purposes of this section, the City shall determine if goods are manufactured from recycled materials in accordance with standards established by the City.

A. Investigation. The City may, but is not required to, seek clarification of an Offer to determine whether it is responsive and make such investigation as necessary to determine whether an Offeror is responsible. The investigation may include:

1. An inquiry into the responsibility of the Offeror’s proposed Subcontractor and suppliers;

2. Requiring an Offeror to demonstrate its financial ability to perform the Contract. In exercising this right, the City shall notify the apparent successful Offeror in Writing to submit such documentation as the City deems necessary to complete a thorough evaluation of the Offeror’s financial ability;

3. Obtaining any credit report information that the City deems necessary to investigate and evaluate whether the Offeror is financially responsible. By submitting an Offer, the Offeror authorizes the City to investigate its credit, to obtain credit reports and to cooperate in the event that credit information is requested by the City.

1. The City may reject any Offer upon finding that to accept the Offer may impair the integrity of the Solicitation process or that rejecting the Offer is in the public interest.

2. The City may reject any Offer, in whole or in part, when rejection is in the best interest of the City as determined by the City. If so, the reasons for rejection shall be made part of the Solicitation file.

3. The City shall reject an Offer as nonresponsive upon the City’s finding that the Offer:

a. is contingent upon the City’s acceptance of terms and conditions (including Specifications) that differ from the Solicitation Document;

c. attempts to prevent public disclosure of matters in contravention of the terms and conditions of Solicitation Document or in contravention of applicable law;

d. offers Goods or Services that fail to meet the Specifications of the Solicitation Document;

g. is not in substantial compliance with all prescribed public Solicitation procedures;

h. contains a deviation that, if the Offer was accepted, would give the Offeror a substantial advantage or benefit not shared by other Offerors; or

i. has failed to comply with the programs adopted pursuant to PCC Section 5.33.900.

a. Has not been prequalified under ORS 279B.120 and the City required mandatory Prequalification;

c. Has not met the requirements of ORS 279A.105 regarding subcontracting to emerging small businesses when required to do so by the City;

d. Has not submitted properly executed Bid or Proposal security as required by the Solicitation Document;

e. Has failed to provide the certification of nondiscrimination required by PCC Section 5.33.640 D.; or

f. Is otherwise nonresponsible. Offerors are required to demonstrate their ability to perform satisfactorily under a Contract. Before Awarding a Contract, the City must have information that indicates that the Offeror meets the applicable standards of responsibility. To be a Responsible Offeror, the City must determine that the Offeror:

(1) Has available the appropriate financial, material, equipment, facility and personnel resources and expertise, or ability to obtain the resources and expertise, necessary to demonstrate the capability of the Offeror to meet all Contractual responsibilities;

(2) Has a satisfactory record of Contract performance. The City should carefully scrutinize an Offeror’s record of Contract performance if the Offeror is or recently has been materially deficient in Contract performance. In reviewing the Offeror’s performance, the City should determine whether the Offeror’s deficient performance was expressly excused under the terms of Contract, or whether the Offeror took appropriate corrective action. The City may review the Offeror’s performance on both private and Public Contracts in determining the Offeror’s record of Contract performance. The City shall make its basis for determining an Offeror nonresponsible under this section part of the Solicitation file;

(3) Has a satisfactory record of integrity. An Offeror may lack integrity if the City determines the Offeror demonstrates a lack of business ethics such as violation of state environmental laws or false certifications made to the City. The City may find an Offeror nonresponsible based on the lack of integrity of any Entity having influence or control over the Offeror (such as a key employee of the Offeror that has the authority to significantly influence the Offeror’s performance of the Contract or a parent company, predecessor or successor Entity). The standards for debarment under ORS 279B.130 may be used to determine an Offeror’s integrity. The City shall make its basis for determining that an Offeror is nonresponsible under this section part of the Solicitation file;

(4) Is qualified legally to Contract with the City. The City may find the Offeror is not legally qualified to contract with the City if:

(b) The Offeror failed to make payments required by Title 7 of the City Code and has failed to make appropriate payment arrangements with the Bureau of Licenses within seven (7) Days of the receipt of an Offer, unless the City waives that requirement and decides to pursue collection through retention of Contract funds, or through other means.

(5) Has supplied all necessary information in connection with the inquiry concerning responsibility. If the Offeror fails to promptly supply information requested by the City concerning responsibility, the City shall base the determination of responsibility upon any available information, or may find the Offeror nonresponsible.

C. Form of Business. For purposes of this rule, the City may investigate any Person submitting an Offer. The investigation may include that Person’s officers, directors, owners, affiliates, or any other Person acquiring an ownership interest of the Person to determine application of this rule or to apply the Debarment provisions of ORS 279B.130.

D. Certification of Non-Discrimination. The Offeror shall certify and deliver to the City the Written certification required by PCC Section 5.33.075 B.3.

A. Rejection. The City may reject all Offers for good cause upon the City’s Written finding it is in the public interest to do so. The City shall notify all Offerors of the rejection of all Offers, along with the good cause justification and finding.

1. The content of or an error in the Solicitation Document, or the Solicitation process unnecessarily restricted competition for the Contract;

2. The price, quality or performance presented by the Offerors is too costly or of insufficient quality to justify acceptance of the Offer;

3. Misconduct, error, or ambiguous, conflicting or misleading provisions in the Solicitation Document threaten the fairness and integrity of the competitive process;

4. Causes other than legitimate market forces threaten the integrity of the competitive Solicitation process. These causes include, but are not limited to, those that tend to limit competition such as restrictions on competition, collusion, corruption, unlawful anti-competitive conduct, and inadvertent or intentional errors in the Solicitation Document;

5. The City cancels the Solicitation in accordance with PCC Section 5.33.660; or

6. Any other circumstance indicating that Awarding the Contract would not be in the public interest.

A. Applicability: This section applies to Awards of a Public Contract, except for small Procurements pursuant to PCC Section 5.33.180, intermediate Procurements pursuant to PCC Section 5.33.190, sole source Procurements pursuant to PCC. 5.33.120, Emergency Procurements pursuant to PCC Section 5.33.130 or a Special Procurement pursuant to PCC Section 5.33.220.

B. Notice: The City shall provide Written notice of Intent to Award a Public Contract to all Offerors. If the Solicitation was posted by Electronic means, however, the City may post the Intent to Award Electronically in the same manner as the Solicitation. The Notice shall be posted at least seven (7) Days before the Award of a Contract, unless the City determines that circumstances require prompt execution of the Public Contract. The City shall document the specific reasons for the shorter notice period in the Solicitation file.

C. The City’s Award shall not be final until the latest of the following three (3) dates:

1. Seven (7) Days after the date of notice of intent to Award, unless the Solicitation Document provided a different period for protest of Contract Award. For purposes of this section, the Day on which the Notice is posted from which the seven Days shall begin to run shall not be included, but the last Day of the period shall be included;

2. The City provides a Written response to all timely-filed protests that denies the protest and affirms the Award; or

A. Cancellation in the Public Interest. Prior to Opening, the City may cancel a Solicitation or Procurement described in a Solicitation may be canceled in whole or in part prior to Contract Execution when cancellation is in the best interest of the City as determined by the City.

B. Delay or Suspension. Any Solicitation or Procurement desired in a Solicitation may be delayed or suspended when the delay or suspension is in the best interest of the City as determined by the City.

C. Costs. The City is not liable to any Offeror for costs, expenses or losses caused by the cancellation, delay or suspension.

D. Notice. If the City cancels, delays or suspends a Solicitation prior to Opening, the City shall provide notice of cancellation in the same manner that the City initially provided notice of the Solicitation. Such notice of cancellation shall:

3. If appropriate, explain that an opportunity will be given to compete on any Re-Solicitation.

E. Notice of Cancellation After Opening. If the City cancels a Procurement or Solicitation after Opening, the City shall provide Written notice of Cancellation to all Offerors who submitted Offers.

A. Prior to Offer Opening. If the City cancels a Solicitation prior to Offer Opening, the City will return all Offers it received to Offerors unopened, provided the Offeror submitted its Offer in a hard copy format with a clearly visible return address. If there is no return address on the envelope, the City will open the Offer to determine the source and then return it to the Offeror.

B. After Offer Opening. If the City rejects all Offers, the City will retain all such Offers as part of the City’s Solicitation file. If a Request for Proposals is cancelled after Proposals are received, the City may return a Proposal to the Proposer that made the Proposal provided the protest period for challenging the cancellation of the Solicitation has expired. The City shall keep a list of returned Proposals in the Solicitation file.

A. Basis of Award. After Award, the City shall make a record showing the basis for determining the successful Offeror part of the City’s Solicitation file.

b. Written justification for any rejection of higher scoring Proposals or for failing to meet mandatory requirements of the Request for Proposal; and

c. If the City permitted negotiations in accordance with PCC Section 5.33.215, the City’s completed evaluation of the initial Proposals and the City’s completed evaluation of final Proposals.

A. Contract Documents. To the extent required, the City shall deliver to the successful Offeror, a Signed purchase order, Price Agreement, or other Contract document(s), as applicable.

B. Notification to Unsuccessful Offerors. A Person may obtain tabulations of Awarded Bids or evaluation summaries of Proposals for a minimal charge, in person or by submitting to the City a Written request accompanied by payment. Such request shall provide the Solicitation Document number and enclose a self-addressed, stamped envelope.

C. Availability of Solicitation Files. Subject to PCC Section 5.33.200 and ORS 279B.060 the City shall make completed Solicitation files available for public review at the City.

D. The City may withhold from disclosure to the public materials included in a Proposal that are exempt or conditionally exempt from disclosure under ORS 192.501 or ORS 192.502 including trade secrets, as defined in ORS 192.501 and information submitted to a public body in confidence, as described in ORS 192.502.

E. Copies from Solicitation Files. Subject to PCC Section 5.33.200 and ORS 279B.060 any Person may obtain copies of material from Solicitation files upon payment of a reasonable copying charge.

A. Public Contracts. The Purchasing Agent has discretion to require the submission of a performance bond, a payment bond, or both in regard to any contracts subject to this Chapter in any amount not to exceed the Contract Price. If so, the requirement shall be expressly set forth in the Solicitation Document.

B. Requirement for Surety Bond. If required, the City shall accept only a performance bond and payment bond furnished by a surety company authorized to do business in Oregon and who is duly listed in the United States Treasury List as published in the Federal Register or is otherwise approved by the City Attorney each in the amount of 100 percent of the Contract price unless otherwise specified in the Solicitation Document or such substitute security is approved by the City Attorney’s office. The surety bond shall have the company’s sealed affixed to it, be signed by the surety’s Attorney in Fact, and have attached the Power of Attorney for the Attorney in Fact. The City Attorney may waive the requirement of the corporate seal.

C. Time for Submission. The apparent successful Offeror must furnish the required performance and payment security within 10 Days after notification by the City. If the Offeror fails to furnish the performance security as requested, the City may reject the Offer and Award the Contract to the Responsible Bidder with the next lowest Responsive Bid or the Responsible Proposer with the next highest-scoring Responsive Proposal, and, at the City's discretion, the Offeror shall forfeit its Bid or Proposal Security.

If the Contract Price exceeds $10,000 and the Contractor is a Nonresident Contractor, the Contractor shall promptly report to the Oregon Department of Revenue on forms provided by the Department of Revenue, the Contract Price, terms of payment, Contract duration and such other information as the Department of Revenue may require before final payment can be made on the Contract. A copy of the report shall be forwarded to the City. The City shall satisfy itself that the above requirements have been complied with before it issues final payment on the Contract.

A. An Affected Person may protest the City's approval of a Special Procurement or a class Special Procurement.

1. Time: A Written protest of the City's approval shall be provided to the Purchasing Agent not later than seven (7) Days after the approval of the Special Procurement or class Special Procurement unless a different time period is provided in the Notice. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule.

a. Sufficient information to identify the Request that is the subject of the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.33.700 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.33.700 B.2., the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

4. If the City denies the protest, it shall inform the Affected Person if the decision is final or whether the Purchasing Agent has decided to refer the protest to the Purchasing Board of Appeals or City Council.

D. Optional City Response: In addition to the requirements of 5.33.700 C, the Purchasing Agent may do any of the following:

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

1. An Affected Person may not seek judicial review of the City Council’s approval of a Special Procurement or Class Special Procurement unless it has complied fully with the Protest requirements of this section and exercised all administrative appeal rights.

2. Judicial review is not available if the Request is denied by the City Council, Board of Appeals or is withdrawn by the Purchasing Agent.

A. An Affected Person may protest the determination that the Goods or Services or class of Goods or Services should be procured from only one source.

1. Time: A Written protest of the Purchasing Agent’s Determination shall be provided to the Purchasing Agent within seven (7) Days whenever the City posts a notice that it will make a sole source purchase. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule or such different time period as may be provided in the Notice of Intent to make a Sole Source purchase.

a. Sufficient information to identify the Solicitation that is the subject of the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.33.710 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.33.710 B.2., the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

D. Optional City Response: In addition to the requirements of 5.33.710 C., the Purchasing Agent may do any of the following:

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

E. Judicial Review. An Affected Person may not seek judicial review of the City Council’s approval of a Sole Source Procurement unless it has complied fully with the protest requirements of this section and has exercised all administrative appeal rights. Judicial review is not available if the City elects not to make a Sole Source Procurement.

A. Interested Offerors may file a Written protest of the Specifications, Contract terms and conditions, pursuant to PCC Section 5.33.730.

1. If no other protest remedies are provided in the Solicitation Document, Affected Persons can file a Written protest to the Award within seven (7) Days after the issuance of the Notice of Intent to Award pursuant to PCC Section 5.33.740 if the meet the requirements of PCC Section 5.33.720 C. below.

2. If expressly required or permitted by the Solicitation Document, Affected Persons must file a Written protest after being excluded from the Competitive Range or after being excluded from any subsequent stages of a Procurement.

C. Basis of Protest. An Affected Person may protest its exclusion from the Competitive Range or from subsequent stages of a Procurement only if:

2. The City made a mistake that, if corrected, would have made the Affected Person eligible to participate in the next stage of the Procurement.

1. Time: If the Solicitation document permits or requires protests prior to the City’s issuance of a Notice of Intent to Award, an Affected Person must submit a Written protest specifying its basis within seven (7) Days after the Affected Person was excluded from participating further in the Procurement.

a. Sufficient information to identify the errors that led to the Affected Person’s exclusion from the Competitive Range or from subsequent stages of a Procurement;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

E. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.33.720 D.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.33.720 D.2., the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

F. Optional City Response: In addition to the requirements of 5.33.720 E., the Purchasing Agent may do any of the following:

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

G. Judicial Review. An Affected Person may not seek judicial review unless it has complied fully with the protest requirements of this section and has exercised all administrative appeal rights. Judicial review is not available if the City elects not to make a Procurement.

5.33.730 Protests and Judicial Review of Solicitation Documents and the Procurement Process

A. An Affected Person may protest the Procurement process or the Solicitation Document for Offers solicited pursuant to competitive sealed Bidding, competitive sealed Proposals, a special Procurement, or a class special Procurement. Prior to submitting a protest, an Affected Person may seek clarification of any provision of the Solicitation Document. Any clarification by the City is binding only if the City amends the Solicitation Document by Addendum.

1. Time: A Written protest of the City's posting of a solicitation document shall be provided to the Purchasing Agent within seven (7) Days after a Solicitation Document is advertised. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule or such different time period as may be provided in the Solicitation Document. A Written Protest of any Addendum shall be submitted by the close of the next business day after issuance of the Addendum.

a. Sufficient information to identify the Solicitation that is the subject of the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.33.730 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.33.730 B.2. above, the Purchasing Agent shall issue a decision in Writing and provide that decision to the Affected Person no less than three (3) business days before Offers are due, unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

4. The Purchasing Agent’s response shall inform the Affected Person if the decision is final or whether the Purchasing Agent has decided to refer the protest to the Purchasing Board of Appeals or City Council. When the decision is final, the Affected Person must seek judicial review before the Opening of Bids, Proposals or Offers.

5. If the City receives a protest from an Affected Person in accordance with this rule, the City may extend Closing if the City determines an extension is necessary to consider the protest and to issue an Addendum to the Solicitation Document.

D. Optional City Response: In addition to the requirements of PCC Section 5.33.730 C. above, the Purchasing Agent may do any of the following:

1. Agree with the protest and make any necessary corrections to the Solicitation Document or Procurement process;

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

E. Judicial Review. An Affected Person may not seek judicial review unless it has complied fully with the protest requirements of this section and exercised all administrative appeal rights. Judicial review is not available if the City withdraws the Solicitation Document that was the subject of the protest.

A. An Affected Person may protest the Award of a Contract, or the intent to Award a Contract, whichever occurs first, if:

1. The Affected Person would be eligible to be Awarded the Public Contract in the event that the protest was successful; and

a. All lower Bids, higher ranked Proposals or other more Advantageous Offers are nonresponsive;

b. The City failed to conduct the evaluation of Offers in accordance with the criteria or processes described in the Solicitation Document;

c. The City abused its discretion in rejecting the Affected Person’s Offer as nonresponsive; or

d. The City’s evaluation of the Offers was in violation of these rules, ORS Chapter 279B or ORS Chapter 279A.

1. Time: A Written protest of the Purchasing Agent’s Award shall be provided to the Purchasing Agent within seven (7) Days after the City posts a notice that it will make a Contract Award. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule or such different time period as may be provided in the Solicitation Document or Notice of Intent to Award.

a. Sufficient information to identify the Award that is the subject of the protest;

b. A detailed statement of all the legal and factual grounds for the protest as described in PCC Section 5.33.740 A.2.a. - d. above;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.33.740 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.33.740 B.2. above, the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days of the receipt of the protest unless a Written determination is made by the City that circumstances exist that require a longer time limit.

D. Optional City Response: In addition to the requirements of PCC Section 5.33.740 C. above, the Purchasing Agent may do any of the following:

1. Agree with the protest and issue a revised Notice of Intent to Award or take any other corrective action that may be necessary to ensure that the Contract is Awarded to the appropriate Offeror;

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

E. Judicial Review. An Affected Person may not seek judicial review of the Intent to Award a Contract unless it has complied fully with the protest requirements of this section. Judicial review is not available if the City elects not to make an Award.

(Ordinance No. 179802, effective December 7, 2005.) Any violation of ORS Chapter 279A or 279B, except 279B.400 to 279B.425, by the City, for which no administrative remedy is otherwise provided by this Code, is subject to the following:

A. A protest by an Affected Person may be made under this section only if a Public Contract is about to be Awarded or has been Awarded and:

1. An alleged violation of ORS 279A or 279B, except 279B.400 to 279B.425, has occurred in the Procurement process and violation has resulted or will result in the unlawful Award of a Contract or the unlawful failure to Award the Contract;

2. The alleged violation deprived the Affected Person of the Award of the Contract or the opportunity to compete for the Award of the Contract;

3. The Affected Person would have been a Responsible Bidder, Proposer or Offeror qualified to receive the Award of the Contract;

4. The Affected Person gave Written notice to the City describing the alleged violation no later than ten (10) Days after the date on which the alleged violation occurred and in no event more than ten (10) Days after the date of the execution of the Contract;

5. If the alleged violation is of ORS 279A, then it is one for which no judicial review is provided by another section of ORS Chapter 279A or 279B. If the alleged violation is of 279B, except 279B.400 to 279B.425, then it is one for which no judicial review is provided by another section of ORS Chapter 279B.

1. Time: A Written protest of the Purchasing Agent’s Award shall be provided to the Purchasing Agent seven (7) Days after the date on which the alleged violation occurred and in no event no later than seven (7) Days after the date of the execution of the Contract. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule and shall not consider a protest under this section if a right to protest is elsewhere provided by this Code.

a. Sufficient information to identify the Procurement or Solicitation that is the subject of the protest;

b. A detailed statement of the alleged violation and all the legal and factual grounds for the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.33.750 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.33.750 B.2. above, the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

D. Optional City Response: In addition to the requirements of 5.33.750 C., the Purchasing Agent may do any of the following:

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest

E. Judicial Review. An Affected Person may not seek judicial review of the City’s decision unless it has complied with the Protest requirements of this section and exercised all administrative appeal rights.

A. The denial, revocation or revision of a Prequalification decision or a decision to debar a prospective Offeror must be appealed in Writing to the City within three (3) business days after receipt of the City’s notice.

B. The City Council delegates its authority to the Purchasing Agent for the purposes of receiving notice that a Person has appealed. Upon receipt of the notice the Purchasing Agent shall notify the Person appealing of a time and place of a hearing designed to consider the appeal within 30 Days.

C. The City Council delegates its authority to conduct a hearing to the Purchasing Agent. The Purchasing Agent may subdelegate the authority to conduct a hearing to any person the Purchasing Agent deems appropriate, including the Board of Appeals.

A. Purpose. The purpose of this rule is to provide for the prompt, effective and efficient resolution of appeals and protests of Affected Persons in regard to City decisions when such matters are referred to it by the Purchasing Agent or when authorized or required by this Chapter.

B. Board Created. Pursuant to Portland City Charter Section 2-103, City Council hereby creates the Purchasing Board of Appeals for the purposes described above.

C. Jurisdiction of Board. The Purchasing Board of Appeals shall hear and resolve protests and appeals arising from City decisions arising under this Chapter only when such matters are referred to it by the Purchasing Agent.

1. The Purchasing Board of Appeals shall consist of three members. A quorum shall consist of three members.

3. The public members shall be appointed by the Mayor, subject to confirmation by City Council and shall serve for a period of up to two years, which may be extended by the Purchasing Agent.

E. Compensation. All members of the Board shall serve without pay, except that they may receive their regular salaries during time spent on Board matters.

F. Vacancies. A vacancy on the Board shall be filled as soon as possible in accordance with the procedures described above.

G. Procedure and Rules. The Purchasing Agent shall establish administrative rules of procedure for the Board and the Board shall follow that procedure for all matters heard by the Board.

H. Staff. The Bureau of Purchases shall provide staff and appropriate assistance for the Board.

A. The Board shall be responsible for reviewing the decisions of the City arising under this Chapter. In regard to appeals of decisions regarding Prequalification or disqualification of Bidders or Proposers, the Board shall comply with Oregon state law and these rules.

B. The Board shall consider only those matters that were raised by the Affected Person in its protest to the Purchasing Agent.

C. The Board shall not consider the appeal of any Affected Person who did not file a timely appeal.

D. The Board shall hear appeals based on administrative rules of procedure established by the Purchasing Agent. The administrative rules shall provide for notice and prompt hearing of appeals and protests, record-making, right to counsel and other procedural matters.

E. Following completion of a hearing, the Board shall prepare a Written decision that shall be mailed to all parties to the hearing by certified mail, return receipt requested

A. Time. Any request for hearing by the Board shall be received by the Purchasing Agent no more than seven (7) Days from the date of the Purchasing Agent’s decision unless a different timeline is provided in the Solicitation Document. The request shall be delivered to the Bureau of Purchases, Attn: Purchasing Agent and marked “Request for Hearing by the Purchasing Board of Appeals.”

B. Contents. The request shall set forth the specific reasons for requesting a hearing by City Council. Only those matters that were raised with the Purchasing Agent and the Purchasing Board of Appeals shall be stated as grounds for appeal.

C. Time of Hearing. The Purchasing Agent shall schedule the time and place for the Board to meet giving consideration to the schedule of the Board.

D. Further Appeal. An Affected Person who is not satisfied with the decision of the Board may file a further Written appeal, but only if permitted by the Purchasing Agent. If not permitted by the Purchasing Agent, the Affected Person has exhausted its administrative appeals. Any request for further appeal shall be received by the Purchasing Agent no later than three (3) Days from the date the Affected Person receives the Board’s Written decision. The request shall be delivered to the Bureau of Purchases, Attn: Purchasing Agent and marked “Request for Hearing by City Council.”

E. If so referred, City Council shall decide at its next available regularly scheduled hearing whether to hear the appeal. If City Council decides not to hear the appeal, the decision of the Board is final. If City Council decides to hear the appeal it shall be scheduled by the Council Clerk for hearing by City Council. The City Council’s decision on the appeal shall be final upon issuance of City Council’s order deciding the appeal. The City Council may also adopt the decision of the Board without further hearing by City Council. In this situation, the appeal to City Council shall be final upon issuance of City Council’s order adopting the decision of the Board. The rules of City Council provided at Chapter 3.02 shall be the rules for any hearing on appeal.

F. If so permitted, the decision of City Council shall conclude an Affected Person’s administrative remedies and further redress sought by an Affected Person shall be pursuant to state law. Otherwise, the Board’s decision shall be final for any remedies that might be available to Affected Person under state law.

G. Costs: The Purchasing Agent may impose a reasonable fee on the Affected Person requesting a hearing before the Board or Council to defray costs of the appeal. The fee shall be paid at the time the hearing is requested or the protest shall be considered waived. In the event that the Person contesting the hearing prevails in its protest, the fee shall be refunded.

From time to time, the City may adopt programs designed to promote competition, enhance economic opportunity and stimulate hiring among all of Portland’s citizens. When such programs are adopted, they shall be included or sufficiently referenced in the Solicitation and Contract documents so that prospective Offerors are aware of their requirements.

A. Contractors and Subcontractors shall maintain all fiscal records relating to a Contract executed with the City in accordance with generally accepted accounting principles. In addition, Contractors and Subcontractors shall maintain any other records necessary to clearly document:

1. Performance. Performance includes, but is not limited to, compliance with plans and Specifications, compliance with fair Contracting and employment programs, compliance with Oregon law on payment of wages and accelerated payment provisions, and any and all requirements imposed on the Contractor or Subcontractor under the Contract or subcontract;

2. Any claims arising from or relating to their performance under a Public Contract;

B. Such records shall be maintained for a period of six years from the date of final completion of the Contract or until the conclusion of any audit, controversy or litigation arising out of or related to a Contract, whichever is longer, unless a shorter period of time is authorized in Writing by the City.

C. Contractors and Subcontractors shall make all their records available to the City within the boundaries of the City of Portland, Oregon, at reasonable times and places regardless of whether litigation has been filed on any claims. If the records are not made available within the boundaries of the City, the Contractor or Subcontractor shall pay all costs for City employees, and any necessary consultants hired by the City, including travel, per diem costs, salary, and any other expenses incurred by City in sending its employees or consultants to examine, audit, inspect, and copy those records. If the Contractor elects to have such records outside these boundaries, the costs paid by the Contractor to the City for inspection, auditing, examining and copying those records are not recoverable costs in any legal proceeding.

D. The City and its Authorized Representatives shall be entitled to inspect, examine, copy and audit the books and records of any Contractor or Subcontractor upon request by the City for any reason, including any documents that may be placed in escrow according to any Contract requirements. The records that may be inspected and copied include financial documents of the Contractor, including tax returns and financial statements. The City will keep such documents confidential to the extent permitted by Oregon law, subject to PCC Section 5.33.920 E. below.

E. Contractors and Subcontractors agree to disclose the records requested by the City and agree to their admission as evidence in any proceeding between the parties, including, but not limited to a court proceeding, arbitration, mediation or other alternative dispute resolution process.

F. In the event that the records disclose that the City is owed money or establishes that any portion of any claim made against the City is not warranted, the Contractor or Subcontractor shall pay all costs incurred by the City in conducting the audit and inspection. Such costs may be withheld from any sum due or that becomes due to the Contractor by the City.

G. Failure of the Contractor or Subcontractor to keep or disclose records as required may result in disqualification as a Bidder or Proposer for future City Contracts or may result in a finding that the Contractor or Subcontractor is not a Responsible Bidder or Proposer.

A. Time for Inspection. The City may, at reasonable times, inspect the part of the plant or place of business of a Contractor or any Subcontractor or supplier which is related to the performance of any Contract Awarded.

B. Access to Plant or Place of Business. As a condition of Bidding or proposing, Bidders and Proposers agree that representatives of the City may enter a Contractor’s or Subcontractor’s or supplier’s plant, place of business, work site or construction site during normal business hours for the following purposes:

1. To inspect and/or test supplies or services for acceptance by the City pursuant to the terms of the Bid or Proposal;

2. To investigate in connection with a Bidder’s or Proposer’s Bid or Proposal, a minority business or EEO certification, or Bidder or Proposer qualification.

3. To inspect for compliance with City programs required by the Solicitation Document.

C. Contractual Provisions. Contracts may provide that the City may inspect supplies and services at the Contractor’s or Subcontractor’s or supplier’s office or facility and perform tests to determine whether they conform to the Solicitation Document, or, after Award, to the Contract requirements, and are qualified. Such inspections and tests shall be conducted in accordance with the terms of the Contract.

D. Procedures for Inspection, Trial Use and Testing. The City may establish operational procedures governing the inspection, testing and trial use of equipment, materials and the application of resulting information and data to Specifications or Procurements.

1. Inspectors and testers. Inspections or tests shall be performed so as not to unduly delay the Work of the Contractor or Subcontractor. No change of any provision of the Specifications or the Contract may be required by the inspector or tester without Written authorization of the City, unless otherwise specified in the Solicitation Document. The presence or absence of an inspector or tester shall not relieve the Contractor or Subcontractor from any requirement of the Contract;

2. Location. When an inspection is made in the plant or place of business of a Contractor or Subcontractor, such Contractor or Subcontractor shall provide without charge all reasonable facilities and assistance for the safety and convenience of the inspector or tester;

3. Time of inspection or testing. Inspection or testing of supplies and services performed at the plant or place of business of any Contractor or Subcontractor shall be performed at reasonable times during normal business hours.

A. Grounds for Cancellation or Termination. The City may, at its option, cancel a Contract or terminate the Contractor’s performance, if cancellation or termination is in the best interest of the City; or, for any material violation of the provisions of the Contract. Such provisions generally include, but are not limited to:

B. The City and the Contractor may cancel the Contract at any time by mutual Written agreement.

1. Reasons for Termination. The City may, in its sole discretion, by a Written order or upon Written request from the Contractor, cancel the Contract or a portion thereof if any of the following occur:

a. The Contractor is prevented from completing the Work for reasons beyond the control of the City; or

b. The Contractor is prevented from completing the Work for reasons beyond the control of the Contractor; or

c. For any reason considered by the City to be in the public interest, other than a labor dispute or any third party judicial proceeding relating to the Work filed in regards to a labor dispute. These reasons may include, but are not limited to, non-availability of materials, phenomena of nature of catastrophic proportions or intensity, executive orders of the President related to national defense, congressional, state or local acts related to funding; or

d. Any third party judicial proceeding relating to the Work other than a suit or action filed in regards to a labor dispute; or

e. If the circumstances or conditions are such that it is impracticable within a reasonable time to proceed with a substantial portion of a Public Improvement.

D. Payment When Contract is Canceled. When the Contract, or any portion thereof, is canceled before completion of all items of Work in the Contract, payment shall be made, based on the Contract price, for the actual items of Work completed under the Contract, or by mutual agreement, for items of Work partially completed. No claim for loss of anticipated profits or overhead shall be allowed;

E. Responsibility for Completed Work if Contract Canceled. Cancellation of a Contract or a portion thereof shall not relieve the Contractor of responsibility for the Work completed, nor shall it relieve the surety of its obligation for any just claims arising from the Work performed.

1. Declaration of Default. The City may, after giving the Contractor and its surety seven (7) Days Written notice and an opportunity to cure deficient performance, terminate the Contractor’s performance for any reasonable cause. Upon such termination, the City may immediately take possession of the premises and of all materials, tools and appliances thereon as well

as all other materials, whether on the premises or not, on which the Contractor has received partial payment. The City may finish the Work by whatever method it may deem expedient;

a. If the Contractor should repeatedly refuse or fail to supply an adequate number of skilled workers or proper materials to carry on the Work as required by the Contract documents, or otherwise fail to pursue the Work in a timely manner; or

b. If the Contractor should repeatedly fail to make prompt payment to Subcontractors or for material or labor; or

c. If the Contractor should voluntarily or involuntarily seek protection under the United States Bankruptcy Code and its Debtor in Possession or Trustee for the estate fails to assume the Contract within a reasonable time, or as provided by the Bankruptcy Court; or

d. If the Contractor should make a general assignment for the benefit of the Contractor’s creditors; or

e. If a receiver should be appointed on account of the Contractor’s insolvency; or

f. If the Contractor is otherwise in material breach of any part of the Contract; or

g. If the Contractor should disregard laws, rules, or the instructions of the City or its Authorized Representative.

2. Required Response to Declaration of Default. If a default is declared and the Contractor’s performance terminated, the Contractor or the surety shall provide the City with immediate and peaceful possession of all of the materials, tools and appliances located on the premises, as well as all other materials whether on the premises or not, on which the Contractor has received any progress payment. Further, the Contractor shall not be entitled to receive any further payment until the Work is completed. On the completion of the Work, the City shall determine the total amount of compensation the Contractor would have been entitled to receive for the Work, under the terms of the Contract, had the Contractor completed the Work. If the difference between this total amount and the sum of all amounts previously paid to the Contractor, (the unpaid balance) exceeds the expense incurred by the City in completing the Work, including expense for additional managerial and administrative services, such excess will be paid to the Contractor, with the consent of the surety;

3. Expense of Completion. The expense incurred by the City shall be as determined and certified by the City;

G. Refusal to Perform. In addition to and apart from the above-mentioned right of the City to terminate the Contractor’s performance, the Contract may be canceled by the City for any willful failure or refusal on the part of the Contractor and its surety to perform faithfully the Contract according to all of its terms and conditions; however, in such event neither the Contractor nor the surety shall be relieved from damages or losses suffered by the City on account of the Contractor’ breach of Contract;

H. Remedies Cumulative. The City may, at its discretion, avail itself of any or all of the above rights or remedies and invoke anyone of the above rights or remedies without prejudice and without precluding the City from subsequently invoking any other right or remedy set forth above, or in the Contract, or available at law or in equity.

I. Notice. The City shall provide the Contractor Written notice of the grounds for Contract cancellation or Contractor termination and of its intention to cancel the Contract or terminate the Contractor’s performance. If the Contractor provided a performance and payment bond, the surety shall also be provided with a copy of the notice of Contract cancellation or Contractor termination. The notice shall include:

3. Notice of the amount of time (if any) in which the City shall permit the Contractor to correct the failure to perform.

J. The Contract documents may provide Contract cancellation or Contractor termination procedures that are different from, or in addition to, those provided herein. If a Contract contains a cancellation or termination clause, that clause rather than PCC Section 5.33.940 shall determine the respective rights and responsibilities of the parties in the event of cancellation or termination.

K. Contract Completion By Substitute Contractor. If the Contractor has provided a performance and payment bond, the City may afford the Contractor’s surety the opportunity, upon the surety’s receipt of a cancellation or termination notice, to provide a substitute Contractor to complete performance of the Contract. The substitute Contractor may Contract with the surety or the City may Contract with the substitute Contractor selected by the surety. Performance by the substitute Contractor shall be rendered pursuant to all material provisions of the original Contract, including the provisions of the performance and payment bond. Substitute performance does not constitute the Award of a new Public Contract and shall not be subject to the provisions of ORS Chapter 279A, 279B or 279C.

5.34.720 Protests and Judicial Review of Solicitation Documents and the Solicitation Processes other than Multi-Tier Processes.

5.34.725 Administrative Reconsideration as a Result of Rejection for Failure to Meet DBE Requirements.

A. The definitions contained in PCC Section 5.33.010 and PCC Section 5.33.140 are applicable to Chapter 5.34.

B. “Conduct Disqualification” means a Disqualification pursuant to ORS 279C.440.

C. “Disqualification” means the preclusion of a Person from contracting with the City for a period of time in accordance with PCC Section 5.34.530. Disqualification may be a Conduct Disqualification or DBE Disqualification.

D. “Notice” means any of the alternative forms of public announcement of Procurements, as described in PCC Section 5.34.310.

A. Public improvements. Chapter 5.34 applies to the Award of Contracts for public improvements and construction services for public improvements.

B. Contracts for minor alteration, ordinary repair or maintenance of public improvements, as well as other Contracts that are not defined as a public improvement under ORS 279A.010 shall be Awarded and executed pursuant to Chapter 5.33 and not this Chapter. However, some portions of ORS 279C and this chapter may still be applicable to the resulting Contracts.

1. The Authority of the City Council as the Local Contract Review Board is the same in regard to Chapter 5.34 as it is for Chapter 5.33, including the authorization of Contract amendments.

2. The Authority of the Purchasing Agent is the same for Chapter 5.34 in regard to public improvement and construction services Contracts as it is for Goods and Services as set forth in Chapter 5.33.

3. The authority of Bureau and Office directors and appropriation unit managers to authorize and execute Contracts and Contract amendments is the same in regard to Chapter 5.34 as it is in Chapter 5.33.

4. The rules stated in PCC Section 5.33.070 regarding the purchase of Goods and Services from City employees shall also apply to Public Improvements covered by PCC Chapter 5.34.

B. Pursuant to ORS 279A.105, the City may require a Contractor to subcontract some part of a Contract to, or to obtain materials to be used in performing the Contract from:

1. A business enterprise that is certified under ORS 200.055 as an emerging small business; or

b. Is located in or draws its workforce from economically distressed areas, as designated by the Oregon Economic and Community Development Department (OECDD).

C. A Subcontractor certified under ORS 200.055 as an emerging small business is located in or draws its workforce from economically distressed areas if:

1. Its principal place of business is located in an area designated as economically distressed by the OECDD pursuant to administrative rules adopted by the OECDD; or

2. The Contract certifies in Writing to the City that a substantial number of the Subcontractor’s employees or Subcontractors that will manufacture the Goods or complete the Services under the Contract reside in an area designated as economically distressed by the OECDD pursuant to administrative rules adopted by OECDD. For the purposes of making the

foregoing determination, the City shall determine in each particular instance what proportion of a Contractor’s Subcontractor’s employees or Subcontractors constitute a substantial number.

3. The City shall include in each Solicitation Document a requirement that Offerors certify in their Offers in a form prescribed by the City, that the Offeror has not and will not discriminate against a Subcontractor in the Awarding of a Subcontract because the Subcontractor is a minority, women or emerging small business enterprise certified under ORS 200.055.

The City shall Award a Public Contract for Public Improvements pursuant to Chapter 5.34 using any method authorized by state law or City Code. Such different methods are called methods of “source selection.” Source selection methods for Public Improvements include:

F. Alternative Contracting Methods found in PCC Section 5.34.800 et seq. Class exemptions are located in PCC Section 5.34.830 G. while individual Contracts must be authorized by the City Council by ordinance.

A. Emergency Declaration. Pursuant to ORS 279C.335(5) and this rule, the City may declare that Emergency circumstances exist that require prompt execution of a Public Contract for Emergency construction or repair Work.

B. The Council or Person authorizing the Emergency Procurement shall document the nature of the Emergency and describe the method used for the selection of the particular Contractor. The City shall encourage competition for Emergency Contracts to the extent reasonable under the circumstances.

C. The authority to declare an Emergency and authorize an Emergency Contract shall be as follows:

1. The Purchasing Agent may declare the existence of an Emergency and authorize the City or any of its bureaus to enter into an Emergency Contract not to exceed $150,000.

2. A bureau director may declare the existence of an Emergency and authorize the bureau to enter into an Emergency Procurement Contract not to exceed $150,000 only if the Purchasing Agent or Person to whom the powers of the Purchasing Agent have been delegated, is not available when the purchase needs to be made.

D. Following the declaration of an Emergency the Commissioner shall immediately prepare an ordinance for approval of the Emergency Contract by the City Council at its next regularly scheduled session or as soon as possible thereafter. That Contract shall be added to the regular agenda of the Commissioner without the need for approval for inclusion on the agenda by other Commissioners.

E. If the Council adopts the ordinance, the City will pay for the Work required by the Contract. If Council disapproves the ordinance, the City only will pay for Work performed prior to the date that the Council considered the ordinance for approval. If for any reason presentation of the ordinance to the Council is delayed, the City still will only be liable for Work performed prior to the time when the ordinance first was presented to the Council.

F. Any Contract Awarded under this section shall be Awarded within 60 Days, unless the City Council authorizes a longer period of time.

G. All documentation of Emergency Contracts shall be sent to the Purchasing Agent for record keeping purposes.

H. All Emergency Contracts Awarded when there was no Emergency or reasonable perception of Emergency are void unless the Contract was otherwise valid under another portion of the City’s Purchasing Rules.

I. After the Award of an Emergency Contract, the City shall execute a Written Contract with the Contractor as soon as possible.

J. All such Contracts, whether or not signed by the Contractor, shall be deemed to contain a termination for convenience clause permitting the City to immediately terminate the Contract at its discretion and, unless the Contract was void, the City shall pay the Contractor only for Work performed prior to the date of termination plus the Contractor’s unavoidable costs incurred as a result of the termination. In no event will the City pay for anticipated lost profits or consequential damages as a result of the termination.

K. The City shall seek competition for an Emergency Contract as reasonable and appropriate under the Emergency circumstances, and may include Written requests for Offers, oral requests for Offers or direct appointment without competition in cases of extreme necessity, in whatever Solicitation time periods the City considers reasonable in responding to the Emergency.

L. Emergency Contracts may be modified by change order or amendment to address the conditions described in the original declaration or an amended declaration that further describes additional Work necessary and appropriate for related Emergency circumstances.

M. Pursuant to ORS 279C.380(4) and this rule, the Emergency declaration may also state that the City waives the requirement of furnishing a performance bond and payment bond for the Emergency Contract. After making such an Emergency declaration the bonding requirements are excused for the Procurement, but nothing herein shall prevent the Purchasing Agent or City Council from subsequently requesting such from the Contractor.

If a Contractor provided a performance bond, the City may afford the Contractor's surety the opportunity to provide a substitute Contractor to complete performance of the Contract. A substitute Contractor shall perform all remaining Contract Work and comply with all terms and conditions of the Contract, including the provisions of the performance bond and the payment bond. Such substitute performance does not involve the Award of a new Contract and shall not be subject to the Competitive Procurement provisions of ORS Chapter 279C or these rules.

A. The City may participate in, sponsor, conduct or administer Joint Cooperative Procurements for the acquisition of Public Improvements, provided that the Administering Contracting Agency’s Solicitation and Award process for the original Contract was an open and impartial Competitive process that used source selection methods substantially equivalent to those found in PCC Chapter 5.34.

B. A Solicitation and Award process uses source selection methods substantially equivalent to those identified in ORS 279C and PCC Chapter 5.34 if the Solicitation and Award process:

1. Calls for Award of a Contract on the basis of a lowest Responsible Bidder or a lowest and best Bidder determination in the case of Competitive Bids, or on the basis of a determination of the Proposer whose Proposal is most Advantageous based on evaluation factors set forth in the Request for Proposals in the case of Competitive Proposals when permitted by an exemption established by the City Council;

3. Uses reasonably clear and precise Specifications that promote suitability for the purposes intended and that reasonably encourage competition.

C. The City shall determine, in Writing, whether the Solicitation and Award process for an Original Contract arising out of a Cooperative Procurement for a Public improvement is substantially equivalent to those identified in ORS 279C and PCC Chapter 5.34.

D. Protests. Protests regarding the use of all types of cooperative Procurements shall be governed by the applicable provisions of PCC Section 5.34.700 et seq.

1. It may charge a fair and reasonable fee to Purchasing Contract Agencies that represent the excess costs of administering the Contract in light of the Purchasing Contracting Agencies use of that Contract; and

2. Determine whether the Purchasing Contract Agency must enter into a Written agreement with it.

B. If the City is a Purchasing Contracting Agency it is authorized to pay a fee to the Administering Contracting Agency that the Purchasing Agent determines is fair and reasonable in light of all the circumstances surrounding the Procurement, including the savings that may be obtained if a cooperative Procurement is used, the cost of the Procurement in relationship to the fee, and other factors as may be considered. If a fee is paid, it will be borne by the Bureau or portion of the City on whose behalf the Procurement is being made.

A. The City shall solicit Bids for Public Improvement Contracts by Invitation to Bid ("ITB"), except:

1. Contracts made with Qualified Nonprofit Agencies providing employment opportunities for disabled individuals, in which case the rules stated in PCC Section 5.33.110 shall apply.

2. Contracts, or classes of Contracts, exempted by the City Council pursuant to state law, including those stated in PCC Section 5.34.830;

3. Contracts for public improvements if the value of the Contract is $5,000 or less;

4. Contracts not exceeding $100,000, other than highways, bridges and other transportation projects, if made under procedures for Competitive quotations pursuant to PCC Section 5.34.160;

5. Contracts not exceeding $50,000 for a highway, bridge, or other transportation project, if made under procedures for competitive quotations pursuant to PCC Section 5.34.160;

8. Contracts governed by ORS 279A.100 and PCC Section 5.34.040 regarding affirmative action;

9. Any other Contract that is not governed by State Purchasing Code found in ORS 279A, 279B and 279C;

10. Energy savings performance contracts entered into in accordance with PCC 5.34.880.

B. Contracts exempted by the City Council from using an ITB process pursuant to ordinance shall follow the rules set forth in PCC Section 5.34.800 et seq. in regard to the alternative Contract method selected, unless the exemption authorizes a different method.

C. Public improvement contracts excepted from competitive bid requirements under PCC 5.34.140 A.1.,3.,4.,5.,6., and 10. are not subject to the exemption requirements of 5.34.830 A. through F.

A. Public Improvement Contracts estimated not to exceed $100,000, or not to exceed $50,000 in the case of Contracts for highways, bridges and other transportation projects, may be Awarded through the requirements of this rule.

B. All requests for a price quotation for a public improvement anticipated to exceed $25,000 shall be in Writing and include the selection criteria to be utilized in selecting a Contractor and, if the criteria are not of equal value, their relative value or ranking. The criteria may be limited to price or some combination of price, experience, specific expertise, availability, project understanding, Contractor capacity, responsibility and similar factors.

1. Written requests shall include the Bureau of Labor and Industries (BOLI) provisions regarding the prevailing wage, if the estimated cost exceeds $25,000.

2. If the estimated cost is less than $25,000, but all price quotations equal or exceed $25,000, then the Solicitation shall be cancelled and a new request for Written price quotations, containing the BOLI provisions regarding prevailing wage shall be included.

C. Requests for quotations for public improvements estimated to be $25,000 or less can be made orally, provided the City seeks at least three competitive quotations, and keeps a Written record of the sources and amounts of the quotations received. If three quotations are not reasonably available the City shall make a Written record of the effort made to obtain those quotations.

D. The City shall Award the Contract to the prospective Contractor whose Price Quotation will best serve the interests of the City, taking into account the announced selection criteria. If Award is not made to the Offeror offering the lowest price, the City shall make a Written record of the basis for Award.

E. Informal level Public Improvement Contracts obtained by competitive quotations may be increased above the original amount of Award by change order or amendment within the limitations pursuant to PCC Section 5.34.020 C.3.

5.34.300 Solicitation Documents; Required Provisions; Assignment or Transfer.

A. The Solicitation Document for a public improvement Contract shall include the following:

1. Identification of the Public Improvement project, including the character of the Work, and applicable plans, Specifications and other Contract documents;

c. That statements made by the City’s representatives at the conference are not binding upon the City unless confirmed by Written Addendum;

3. The deadline for submitting mandatory Prequalification applications and the class or classes of Work for which Offerors must be Prequalified if Prequalification is a requirement;

4. The name and title of the authorized City representative designated for receipt of Offers and contact representative (if different);

5. Instructions and information concerning the form and submission of Offers, including the address of the office to which Offers must be delivered, any Bid or Proposal Security requirements, and any other required information or special information, e.g., whether Offers may be submitted by Facsimile or Electronic means (See PCC Section 5.34.330 regarding Facsimile Bids or Proposals and PCC Section 5.34.340 regarding Electronic Procurement);

7. The time and date of Closing after which the City will not accept Offers, which time shall be not less than five (5) Days after the date of the last publication of the advertisement, and may, in the sole discretion of the City, direct or permit the submission and receipt of bids by electronic means. If the City is issuing an ITB that may result in a Public Improvement Contract with a value in excess of $100,000, the City shall designate a time of Closing consistent with the first-tier Subcontractor disclosure requirements of ORS 279C.370(1)(b) and PCC Section 5.34.493. For timing issues relating to Addenda, see PCC Section 5.34.430;

9. A statement that each Bidder to an ITB must identify whether the Bidder is a "Resident Bidder," as defined in PCC Section 5.33.020 A.51.;

10. If the Contract resulting from a Solicitation will be a Contract for a Public Work subject to ORS 279C.800 to 279C.870 or the Davis-Bacon Act (40 U.S.C. 276a), a statement that no Offer will be received or considered by the City unless the Offer contains a statement by the Offeror as a part of its Offer that "Contractor agrees to be bound by and will comply with the provisions of ORS 279C.840 or 40 U.S.C. 276a";

11. A statement that the City will not receive or consider an Offer for a Public Improvement Contract unless the Offeror is registered with the Construction Contractors Board, or is licensed by the State Landscape Contractors Board.

12. Whether a Contractor or a Subcontractor under the Contract must be licensed under ORS 468A.720 regarding asbestos abatement projects;

13. Contractor's certification of nondiscrimination in obtaining required Subcontractors in accordance with ORS 279A.110(4) and PCC Section 5.34.040;

14. How the City will notify Offerors of Addenda and how the City will make Addenda available (See PCC Section 5.34.430); and

15. When applicable, instructions and forms regarding First-Tier Subcontractor Disclosure requirements, as set forth in PCC Section 5.34.493.

16. A statement that the Offeror must obtain EEO certification and have a valid City business license, if required.

B. The Solicitation Document shall also contain the following information about the evaluation process:

1. A statement that the City may reject any Offer not in compliance with all prescribed Public Contracting procedures and requirements, and may reject for good cause all Offers upon the City’s finding that it is in the public interest to do so;

2. The anticipated Solicitation schedule, deadlines, protest process and evaluation process, if any;

3. Evaluation criteria, including the relative value applicable to each criterion, that the City will use to determine the Responsible Bidder with the lowest Responsive Bid (where Award is based solely on price) or the Responsible Proposer or Proposers with the best Responsive Proposal or Proposals (where use of Competitive Proposals is authorized), along with the process the City will use to determine acceptability of the Work;

a. If the Solicitation Document is an Invitation to Bid, the City shall set forth any Special price evaluation factors in the Solicitation Document. Examples of such factors include, but are not limited to, conversion costs, transportation cost, volume weighing, trade-in allowances, cash discounts, depreciation allowances, cartage penalties, ownership or life-cycle cost formulas. Price evaluation factors need not be precise predictors of actual future costs; but, to the extent possible, such evaluation factors shall be objective, reasonable estimates based upon information the City has available concerning future use;

b. If the Solicitation Document is a Request for Proposals, the City shall refer to the additional requirements of PCC Section 5.34.850; and

C. The City shall include all Contract terms and conditions, including warranties, insurance and bonding requirements, that the City considers appropriate for the Public Improvement project.

D. The City must include all applicable Contract provisions required by Oregon law as follows:

1. Prompt payment to all Persons supplying labor or material; contributions to Industrial Accident Fund; liens and withholding taxes (ORS 279.505(1)); and all provisions regarding accelerated or twice-monthly payment if required by the City’s Standard Construction Specifications;

2. Demonstrate that an employee drug testing program is in place (ORS 279C.505(2));

3. If the Contract calls for demolition Work described in ORS 279C.510(1), a condition requiring the Contractor to salvage or recycle construction and demolition debris, if feasible and cost-effective;

4. If the Contract calls for lawn or landscape maintenance, a condition requiring the Contractor to compost or mulch yard waste material at an approved site, if feasible and cost effective (ORS 279C.510(2);

6. Contractor and first-tier Subcontractor liability for late payment on Public Improvement Contracts pursuant to ORS 279C.515(2), including the rate of interest;

7. A Person's right to file a complaint with the Construction Contractors Board for all Contracts related to a Public Improvement Contract as provided in ORS 279C.515(3);

11. A Contract provision substantially as follows: "All employers, including Contractor, that employ subject Workers who work under this Contract in the State of Oregon shall comply with ORS 656.017 and provide the required Workers' Compensation coverage, unless such employers are exempt under ORS 656.126. Contractor shall ensure that each of its Subcontractors complies with these requirements." (ORS 279C.530(2));

17. Prompt payment policy, progress payments, rate of interest (ORS 279C.570);

20. Contractor's certification of compliance with the Oregon tax laws in accordance with ORS 305.385; and

21. Contractor's certification that all Subcontractors performing Work described in ORS 701.005(2) (i.e., construction Work) will be registered with the Construction Contractors Board. or licensed by the State Landscape Contractors Board in accordance with ORS 701.035 to 701.055 before the Subcontractors commence Work under the Contract.

E. Unless otherwise provided in the Contract, the Contractor shall not assign, sell, dispose of, or transfer rights, nor delegate duties under the Contract, either in whole or in part, without the City’s prior Written consent, which must be approved as to form by the City Attorney’s Office. Unless approved in Writing and approved as to form, such consent shall not relieve the Contractor of any obligations under the Contract. Any assignee or transferee shall be considered the agent of the Contractor and be bound to abide by all provisions of the Contract. If the City consents in Writing to an assignment, sale, disposal or transfer of the Contractor's rights or delegation of Contractor's duties, the Contractor and its surety, if any, shall remain liable to the City for complete performance of the Contract as if no such assignment, sale, disposal, transfer or delegation had occurred unless the City otherwise agrees in Writing.

A. The City shall furnish “Notice” as set forth PCC Sections 5.34.310 A.1. through 3. to a number of Persons sufficient for the purpose of fostering and promoting competition. The Notice shall indicate where, when, how and for how long the Solicitation Document may be obtained and generally describe the Public Improvement project or Work. The Notice may contain any other appropriate information. The City may charge a fee or require a deposit for the Solicitation Document. The City may furnish Notice using any method determined to foster and promote competition, including:

1. Mailing Notice of the availability of Solicitation Documents to Persons that have expressed an interest in the City’s Procurements;

2. Placing Notice on the Oregon Department of Administrative Services’ Electronic Procurement System known as “ORPIN”(Oregon Procurement Information Network) or a successor electronic System; or

B. Pursuant to ORS 279C.360 and this rule, the City shall advertise every Solicitation for Competitive Bids or Competitive Proposals for a Public Improvement Contract, unless the City Council has exempted the Solicitation from the advertisement requirement as part of a Competitive Bidding exemption under ORS 279C.335 and PCC Section 5.34.820.

1. Unless the City publishes by Electronic Advertisement as permitted by PCC Section 5.34.310 B.2., the City shall publish the advertisement for Offers at least once in at least one newspaper of general circulation in the area where the Contract is to be performed and in as many additional issues and publications as the City may determine to be necessary or desirable to foster and promote competition.

2. The City Council finds that publishing Notice Electronically is likely to be cost effective. The City may publish by Electronic Advertisement if:

a. The City has published a Notice that it may publish future advertisements for Offers by Electronic Advertisement. The City shall publish such Notice weekly, for no less than four (4) consecutive weeks. The City Notice shall include the World Wide Web location (i.e., Uniform Resource Locator or URL) where the City will publish future Electronic Advertisements or alternatively, the Web location where the City will publish information on accessing the Electronic Advertisement via a Telnet application;

b. The City posts in its business office a Notice that the City will publish advertisements for Offers by Electronic Advertisement for no less than four consecutive weeks. The Notice shall include the World Wide Web location (i.e., Uniform Resource Locator or URL) where the City publishes Electronic Advertisements or alternatively, the Web location where the City publishes information on accessing the Electronic Advertisement via Telnet; and

c. In addition to the City’s publication required under PCC Section 5.34.310 B.2.a. or b., the City shall also publish an advertisement for Offers in at least one trade newspaper of general statewide circulation if the Contract is for a Public Improvement with an estimated cost in excess of $125,000.

(2) The office where Contract terms, conditions and Specifications may be reviewed;

(3) The date that Persons must file applications for Prequalification under ORS 279C.340, if Prequalification is a requirement, and the class or classes of Work for which Persons must be Prequalified;

(4) The scheduled Closing, which shall not be less than five (5) Days after the date of the last publication of the advertisement;

(5) The name, title and address of the City Person authorized to receive Offers;

(7) If applicable, that the Contract is for a Public Work subject to ORS 279C.800 to 279C.870 or the Davis-Bacon Act (40 U.S.C. 276(a)).

C. The City shall post a copy of each advertisement for Offers at the Bureau of Purchases. An Offeror may obtain a copy of the advertisement for Offers upon request to the Bureau.

A. Specification content is in the sole discretion of the City of Portland, subject to statutory restrictions on the use of brand names.

B. The City may consult with technical experts, suppliers, prospective contractors and representative of the industries with which the City will Contract. The City shall take reasonable measure to ensure that no Person who prepares or assists in the preparation of Solicitation Documents, Specifications, plans or Scope of Work (collectively, “documents”), and that no business with which the Person is associated realizes a material competitive advantage that arises from the City’s use of those documents.

C. A “brand name or equal” Specification may be used when it is Advantageous to the City, because the brand name describes the standard of quality, performance, functionality and other characteristics of the product needed by the City. The City’s determination of what constitutes a product that is equal or superior to the product specified is final unless otherwise specified. The use of a brand name shall mean “brand name or equal”.

D. A “brand name” Specification may be used requiring a Contractor to provide a specific brand when the Purchasing Agent, or designee, makes the following findings:

1. The use of a brand name Specification is unlikely to encourage favoritism in the Awarding of a Public Contract or substantially diminish competition for Public Contracts: or

2. The use of a brand name Specification would result in a substantial cost savings to the City; or

3. There is only one manufacturer or seller of the product of the quality, performance or functionality required; or

4. Efficient utilization of existing equipment, or supplies requires the acquisition of compatible equipment or supplies

A. Authorization. The Purchasing Agent may authorize Offerors to submit Facsimile Offers. If the Purchasing Agent determines that Bid or Proposal Security is or will be required, the City shall not authorize Facsimile Offers unless the City has established a method for receipt of such security. Prior to authorization the City must determine whether the City’s equipment and personnel are capable of receiving the size and volume of anticipated Offers within a short period of time and establish administrative procedures and controls:

2. To ensure timely delivery of Offers to the location of Opening and to preserve the "sealed" requirement of competitive Procurement.

B. Provisions To Be Included in Solicitation Document. In addition to all other requirements, if the City authorizes a Facsimile Offer, the City shall include in the Solicitation Document provisions substantially similar to the following:

1. A “Facsimile Offer”, as used in this Solicitation, means an Offer, modification of an Offer, or withdrawal of an Offer that is transmitted to and received by the City via a Facsimile machine.

2. Offerors may submit Facsimile Offers in response to this Solicitation. The entire response must arrive at the place and by the time specified in this Solicitation Document.

5. The data and compatibility characteristics of the City’s receiving Facsimile machine are as follows:

b. Compatibility characteristics, e.g., make and model number, receiving speed, and communications protocol.

6. The City is not responsible for any failure attributable to the transmission or receipt of the Facsimile Offer including, but not limited to the following:

A. General. The City may advertise Public Improvement Contracts Electronically if the Purchasing Agent finds that Electronic Advertisements are likely to be cost effective. However, if the Public Improvement Contract has an estimated cost in excess of $125,000, the advertisement must be published in at least one trade newspaper of general statewide circulation.

B. The City may post a notice of Intent to Award a Contract Electronically at least seven (7) Days before the Award of a Public Contract.

C. Required Factors. In determining whether to authorize Electronic Bids or Proposals, the City shall consider factors such as:

4. Availability, reliability, speed, and capacity of the receiving Electronic equipment;

5. Adequacy of administrative procedures and controls for receiving, identifying, recording, and safeguarding Electronic Bids or Proposals, and ensuring their timely delivery to the Bid or Proposal Opening location; and,

6. The means and method for sealing or securing the transmitted documents to preserve the sealed requirement of competitive Procurement.

D. Security. If Bid or Proposal Security is required, Electronic submission shall not be authorized unless the City has provided another method for receipt of the security.

E. Authorization; Contents of Solicitation Document. Bids or Proposals may be submitted Electronically only if specifically authorized by the Solicitation Document. If Electronic transmission is authorized, the City shall include provisions substantially similar to the following in the City’s Solicitation Document:

1. Definition. Electronic Bid or Proposal, as used in this Solicitation Document, means a Bid or Proposal, modification of a Bid or Proposal, or withdrawal of a Bid or Proposal that is Electronically transmitted to and received by the City, in the manner specified in the Solicitation Document.

2. Timely Submission. Bidders or Proposers may submit Electronic Bids or Proposals in response to this Solicitation Document. The entire Electronic Bid or Proposal shall arrive at the place and by the time specified in the Solicitation Document.

3. Rejection of Bids or Proposals. Electronic Bids or Proposals that fail to furnish required representations or information, that are contingent or that reject or take exception to any of the terms, conditions, and provisions of the Solicitation Document, may be rejected and excluded from consideration, as otherwise provided by this Chapter.

4. Signatures. Electronic Bids or Proposals shall contain the required signatures.

5. Request for Original. The City reserves the right to Award the Contract solely on the Electronic Bid or Proposal. However, if requested to do so by the City, the apparently successful Bidder or Proposer agrees to promptly submit the complete original signed Bid or Proposal.

7. Non-Responsibility for Transmission Failure. If the Bidder or Proposer chooses to transmit an Electronic Bid or Proposal, the City shall not be responsible for any failure attributable to the transmission or receipt of the Electronic Bid or Proposal regardless of cause.

A. Security Amount. If The City requires Bid or Proposal Security, it shall be not more than 10% of the Offeror's Bid or Proposal. The City shall not use Bid or Proposal Security to discourage competition. The City shall clearly state any Bid or Proposal Security requirements in its Solicitation Document. The Offeror shall forfeit Bid or Proposal Security after Award if the Offeror fails to execute the Contract and promptly return it with any required Performance Bond and Payment Bond. See ORS 279C.365(4) and ORS 279C.385.

B. Requirement for Bid Security (Optional for Proposals). Unless The City Council has exempted a Solicitation, or class of Solicitations, from Bid security pursuant to ORS 279C.390, the City shall require Bid security for its Solicitation of Bids for Public Improvements. The Purchasing Agent nonetheless may require Bid security from any Offeror, or for any project, even if the City Council has exempted a class of Solicitations from Bid security if the Purchasing Agent believes it necessary to secure payment and performance. The Purchasing Agent may require Proposal Security in RFPs when Award of a Public Improvement Contract may be made without negotiation following receipt of a Firm Offer as described in PCC Section 5.34.450 A.2. See ORS 279C.400(5).

C. Form of Bid or Proposal Security. The City may accept only the following forms of Bid or Proposal Security:

1. A surety bond, signed by the surety’s authorized Attorney in Fact, from a company authorized to do business in the State of Oregon and that is duly listed in the United States Treasury list as published in the Federal Register, or which is otherwise approved by the City Attorney. The surety company’s seal shall be affixed to the bond and a Power of Attorney for the Attorney in Fact shall be submitted. The City Attorney has the authority to waive the requirement of the corporate seal: or

2. A signed irrevocable letter of credit issued by an insured institution as defined in ORS 706.008(12); or

D. Return of Security. The City shall return or release the Bid or Proposal Security of all unsuccessful Offerors after a Contract has been fully executed and all required Bonds have been provided, or after all Offers have been rejected. The City may return the Bid or Proposal Security of unsuccessful Offerors prior to Award if the return does not prejudice Contract Award and the Security of at least the Bidders with the three lowest Bids, or the Proposers with the three highest scoring Proposals, is retained pending execution of a Contract.

A. The City may hold pre-Offer conferences with prospective Offerors prior to Closing, to explain the Procurement requirements, obtain information or to conduct site inspections.

B. The City may require attendance at the pre-Offer conference as a condition for making an Offer. Unless otherwise specified in the Solicitation Document, a mandatory attendance requirement is considered to have been met if, at any time during the mandatory meeting, a representative of an offering firm is present.

C. If the City holds a pre-Offer conference, it shall be held within a reasonable time after the Solicitation Document has been issued, but sufficiently before the Closing to allow Offerors to consider information provided at that conference.

D. Statements made by the City’s representative at the pre-Offer conference, or elsewhere do not change the Solicitation Document unless the City confirms such statements with a Written Addendum to the Solicitation Document.

E. The City must set forth notice of any pre-Offer conference in the Solicitation Document in accordance with PCC Section 5.34.300.

B. Notice and Distribution. The City shall notify prospective Offerors of Addenda consistent with the standards of Notice set forth in PCC Section 5.34.310. The Solicitation Document shall specify how the City will provide Notice of Addenda and how the City will make the Addenda available (see, PCC Section 5.34.300). For example, the Solicitation Document could say: “City will not mail Notice of Addenda, but will publish Notice of any Addenda on City's Web site.” Addenda may be downloaded off the City's Web site. Offerors should frequently check the City's Web site until Closing, i.e., at least once weekly until the week of Closing and at least once daily the week of the Closing.”

C. Timelines; Extensions. The City shall issue Addenda within a reasonable time to allow prospective Offerors to consider the Addenda in preparing their Offers. The City should extend the Closing if the Purchasing Agent determines prospective Offerors need additional time to review and respond to Addenda. Except to the extent that the Purchasing Agent determines that the public interest requires it, the City shall not issue an Addendum less than 72 hours before the Closing unless the Addendum also extends the Closing. Notice of the Addenda shall be deemed to

occur when the Addendum is posted on the City’s web site or upon mailing, whichever is applicable. If both occur, the notification is complete when the first of these two events occur.

D. Request for Change or Protest. Unless a different deadline is set forth in the Addendum, an Offeror must submit a Written request for change or protest to the Addendum, as provided in PCC Section 5.34.440 by the close of the City's next business Day after issuance of the Addendum. The City shall consider only an Offeror's request for change or protest to the Addendum; the City shall not consider a request for change or protest to matters not added or modified by the Addendum. Notwithstanding any provision of this paragraph, the City is not required to provide a protest period for Addenda issued during a multi-tiered Solicitation process pursuant to PCC Section 5.34.850.

A. Time for submission of request for change. Unless otherwise provided in the Solicitation Document, an Offeror shall deliver any request for change to the Solicitation Document, Specifications or Contract provisions to the City in Writing within seven (7) Days prior to Bid or Proposal Closing. Requests for change in regard to Addenda shall be submitted in accordance within the time permitted by PCC Section 5.34.430 D.

B. Any request for change shall include a detailed statement of the legal and factual reasons for the request for change; any proposed changes to Specifications or Contract provisions; and a description of any prejudice to the Offeror; and a statement of the form of relief requested. No request for change of the content of the Solicitation Document, Specifications or Contract provisions shall be considered after the deadline established for submitting such request. The City shall notify the Offeror if the City entirely rejects the request. If the City agrees with the request, in whole or in part, the City shall either issue an Addendum reflecting the change or cancel the Solicitation.

D. Identification of request for change. Envelopes containing requests for change of the Solicitation Document, Specifications or Contract provisions shall be marked with the following information:

1. Solicitation Specification or Contract Provision Request for Change or Clarification; and

E. A Proposer may request a change to add alternate terms and conditions for negotiation if the Solicitation Document permits negotiation. In this circumstance, request for change procedure shall be governed by the Solicitation Document and PCC Section 5.34.840 E. and PCC Section 5.34.850 F.

A. Offer and Acceptance. The Bid or Proposal is the Bidder's or Proposer's Offer to enter into a Contract.

1. In Competitive Bidding, the Offer is always a "Firm Offer," i.e., the Offer shall be held open by the Offeror for the City’s acceptance for the period specified in PCC Section 5.34.495. The City’s Award of the Contract to a Bidder constitutes acceptance of the Offer and binds the Offeror to the Contract.

2. In Competitive Proposals, the Solicitation Document shall describe whether Offers are to be made and considered as “Firm Offers” that may be accepted without negotiation, as in the case of Competitive Bidding, or whether Offers are subject to discussion, negotiation or otherwise are not to be considered as final Offers.

B. Contingent Offers. Except to the extent that a Proposer is authorized to propose certain terms and conditions pursuant to PCC Section 5.34.850, a Proposer shall not make, and the City shall not accept, an Offer contingent upon the City’s acceptance of any terms or conditions (including Specifications) other than those contained in the Solicitation Document.

C. Offeror's Acknowledgement. By signing and returning the Offer, the Offeror acknowledges it has read and understands the terms and conditions contained in the Solicitation Document and that it accepts and agrees to be bound by the terms and conditions of the Solicitation Document. If the Request for Proposals permits Proposal of alternative terms under PCC Section 5.34.850, the Offeror's Offer

includes the nonnegotiable terms and conditions and any proposed terms and conditions offered for negotiation upon and to the extent accepted by the City in Writing.

D. Instructions. An Offeror shall submit and Sign its Offer in accordance with the Solicitation Document. Bids requiring a Written and non-electronic signature shall be signed in ink by an Authorized Representative of the Offeror. An Offeror shall initial and submit any correction or erasure to its Offer prior to the Opening in accordance with the requirements for submitting an Offer under the Solicitation Document.

E. Forms. An Offeror shall submit its Offer on the form(s) provided in the Solicitation Document, unless an Offeror is otherwise instructed in the Solicitation Document.

F. Documents. An Offeror shall provide the City with all documents and Descriptive Literature required under the Solicitation Document.

G. Facsimile or Electronic Submissions If the City permits Facsimile or Electronic Offers in the Solicitation Document, the Offeror may submit Facsimile or Electronic Offers in accordance with the Solicitation Document. The City shall not consider Facsimile or Electronic Offers unless authorized by the Solicitation Document.

H. Product Samples and Descriptive Literature. The City may require Product Samples or Descriptive Literature if it is necessary or desirable to evaluate the quality, features or characteristics of the offered items. The City will dispose of Product Samples, or return or make available for return Product Samples to the Offeror in accordance with the Solicitation Document.

1. To ensure proper identification and handling, Offers shall be submitted in a sealed envelope appropriately marked or in the envelope provided by the City, whichever is applicable.

2. The City is not responsible for Offers submitted in any manner, format or to any delivery point other than as required in the Solicitation Document.

J. Receipt of Offers. The Offeror is responsible for ensuring that the City receives its Offer at the required delivery point prior to the Closing, regardless of the method used to submit or transmit the Offer.

A. Modifications. Once submitted, Bids or Proposals may only be modified in Writing prior to the time and date set for Bid or Proposal Closing. Unless otherwise provided in the Solicitation Document, any modifications shall be prepared on the Bidder's or Proposer's letterhead, signed by an Authorized Representative of the Bidder or Proposer, state that the new document supersedes or modifies the prior Bid or Proposal and be submitted in a sealed envelope, appropriately marked. The City may accept modifications Electronically only if it has authorized Electronic submittal in the Solicitation Document. To ensure the integrity of the Bidding process, the envelope or Electronic submission containing any modifications to a Bid or Proposal shall be marked with the following information:

1. Bids or Proposals may be withdrawn by a Written notification of the Bidder or Proposer. The notice shall be signed by an Authorized Representative of the Bidder or Proposer, and must be received prior to the time and date set for Bid or Proposal Closing.

2. Written notifications to withdraw Bid or Proposal shall be marked with the following information:

C. Documentation. All documents relating to the modification or withdrawal of Bids or Proposals shall be made a part of the appropriate Bid or Proposal Solicitation file.

D. Late Requests for Modification or Withdrawal. Any request for modification or withdrawal of a Bid or Proposal made after the time for Bid or Proposal Closing is late as provided by PCC Section 5.34.480. Any late submission shall be returned to the Bidder or Proposer unopened. If any late submission is opened inadvertently, the procedure provided by PCC Section 5.34.470 shall apply except the submission shall be returned to the sender.

A. Receipt. Each Offer, and modifications to Offers, shall, upon receipt, be Electronically or mechanically time-stamped by the Bureau of Purchases time clock, or marked by hand, but not opened, and shall be stored in a secure place until Bid or Proposal Opening. If Offers or modifications are opened inadvertently or opened prior to the time and date set for Bid or Proposal Opening because they were improperly identified by the Offeror, the opened Offers or modification documents shall be resealed and stored for Opening at the correct time. When this occurs, documentation of the resealing shall be placed in the file.

B. Opening and Recording. Offers and modifications to Offers shall be opened publicly, at the time, date, and place designated in the Solicitation Document. In the case of Invitations to Bid, to the extent practicable, the name of each Bidder, the Bid price(s), and such other information as considered appropriate shall be read aloud. In the case of Requests for Proposals or on voluminous Bids, the City may advise Bidders and Proposers, as part of the Solicitation Documents, that the Bid or Proposal items and prices will not be read aloud.

C. Availability. After Opening, the City shall make Bids available for public inspection, but pursuant to ORS 279C.410. Proposals are not subject to disclosure until after notice of intent to Award is issued. In any event, the City may withhold from disclosure those portions of an Offer that the Offeror designates trade secrets or as confidential proprietary data in accordance with the Oregon Public Records Law, ORS 192.410 et seq. Application of the Oregon Public Records Law ORS 192.410 et seq. shall determine if the information designated as confidential and claimed to be exempt is in fact exempt from disclosure. To the extent the City determines the designated information is not in accordance with applicable law, the City shall make those portions available for public inspection. In order to facilitate public inspection of the non-confidential portion of the Bid or Proposal, material designated as confidential shall accompany the Offer, but the Offeror shall separate it, if requested, from the remainder of the Offer. Prices, makes, model or catalog numbers of items offered, scheduled delivery dates, and terms of payment shall be publicly available regardless of the Offeror’s designation to the contrary. Copies of public records will be made available upon payment of the City’s charges.

A. Any Offer received after Closing is late. An Offeror's request for withdrawal or modification of an Offer received after Closing is late. The City shall not consider late Offers, withdrawals or modifications.

E. Failure to properly return or dispose of a late submission does not mean an Offer or submission arrived on time.

A. Treatment of Mistakes. The City shall not allow an Offeror to correct or withdraw an Offer for an error in judgment.

B. Correction of Mistakes: If the City discovers certain nonjudgmental mistakes in an Offer after Opening, but before Award of the Contract, the City may waive, or permit an Offeror to correct, a minor informality. However, it is not required to do so. A minor informality is a matter of form rather than substance that is evident on the face of the Offer, or an insignificant mistake that can be waived or corrected without prejudice to other Offerors. Examples of minor informalities include, but are not limited to, an Offeror’s failure to:

1. Return the correct number of Signed Offers or the correct number of other documents required by the Solicitation Document;

2. Sign the Offer in the designated block, provided a Signature appears elsewhere in the Offer, evidencing an intent to be bound;

3. Acknowledge receipt of an Addendum to the Solicitation Document, provided it is clear on the face of the Offer that the Offeror received the Addendum and intended to be bound by its terms;

4. The correction is not prejudicial to the interest of the public or the other Offerors.

C. The City may correct a clerical error if the intended Offer and the error are evident on the face of the Offer, or other documents submitted with the Offer, and the Offeror confirms the City's correction in Writing. A clerical error is an Offeror's error in transcribing its Offer. Examples include typographical mistakes, errors in extending unit prices, transposition errors, arithmetical errors, instances in which the intended correct unit or amount is evident by simple arithmetic calculations (for example a missing unit price may be established by dividing the total price for the units by the quantity of units for that item or a missing, or incorrect total price for an item may be established by multiplying the unit price by the quantity when those figures are available in the Offer). In the event of a discrepancy, unit prices shall prevail over extended prices.

D. The City may permit an Offeror to withdraw an Offer based on one or more clerical errors in the Offer only if the Offeror shows with objective proof and by clear and convincing evidence:

2. That the error is not a minor informality under this subsection or an error in judgment;

4. That the Offeror acted in good faith in submitting an Offer that contained the claimed error and in claiming that the alleged error in the Offer exists;

5. That the Offeror acted without gross negligence in submitting an Offer that contained a claimed error;

6. That the Offeror will suffer substantial detriment if the City does not grant it permission to withdraw the Offer;

7. That the City's or the public's status has not changed so significantly that relief from the forfeiture will work a substantial hardship on the City or the public it represents; and

E. The criteria in PCC Section 5.34.490 D. shall determine whether the City will permit an Offeror to withdraw its Offer after Closing. These criteria also shall apply to the question whether the City will permit an Offeror to withdraw its Offer without forfeiture of its Bid Bond (or other Bid security), or without liability to the City based on the difference between the amount of the Offeror's Offer and the amount of the Contract actually Awarded by the City, whether by Award to the next lowest Responsive and Responsible Bidder or the best Responsive and Responsible Proposer, or by resort to issuing a new Solicitation.

F. Rejection for Mistakes. The City shall reject any Offer in which a mistake is evident on the face of the Offer and the intended correct Offer is not evident or cannot be substantiated from documents accompanying the Offer, i.e., documents submitted with the Offer.

G. Identification of Mistakes after Award. Following Award, an Offeror is bound by its Offer, and may withdraw its Offer to rescind a Contract entered into pursuant to this rule only to the extent permitted by applicable law.

A. Required Disclosure. Within two working hours after the Bid Closing on an ITB for a Public Improvement having a Contract Price estimated by the City to exceed $100,000, all Bidders shall submit to the City a disclosure form as described by ORS 279C.370(2), identifying any first-tier Subcontractors that will be furnishing labor or labor and materials on the Contract, if Awarded, whose subcontract value would be equal to or greater than:

B. Bid Closing, Disclosure Deadline and Bid Opening. For each ITB to which this rule applies, the City shall:

1. Set the Bid Closing on a Tuesday, Wednesday or Thursday, and at a time between 2 p.m. and 5 p.m., except that these Bid Closing restrictions do not apply to an ITB for maintenance or construction of highways, bridges or other transportation facilities, and provided that the two-hour disclosure deadline described by this rule would not then fall on a legal holiday;

3. Consider for Contract Award only those Bids for which the required disclosure has been submitted by the announced deadline on forms prescribed by the City.

C. Bidder Instructions and Disclosure Form. For the purposes of this rule, the City in its Solicitation shall:

1. Prescribe the disclosure form that must be utilized, substantially in the form set forth in ORS 279C.370(2); and

Bidders are required to disclose information about certain first-tier Subcontractors when the Contract value for a Public Improvement is greater than $100,000 (see ORS 279C.370). Specifically, when the Contract Amount of a first-tier Subcontractor furnishing labor or labor and materials would be greater than or equal to: (i) 5% of the project Bid, but at least $15,000, or (ii) $350,000 regardless of the percentage, the Bidder must disclose the following information about that subcontract either in its Bid submission, or within two hours after Bid Closing:

If the Bidder will not be using any Subcontractors that are subject to the above disclosure requirements, the Bidder is required to indicate "NONE" on the accompanying form.

THE CITY MUST REJECT A BID IF THE BIDDER FAILS TO SUBMIT THE DISCLOSURE FORM WITH THIS INFORMATION BY THE STATED DEADLINE."

D. Submission. A Bidder shall submit the disclosure form required by this rule either in its Bid submission, or within two (2) Working hours after Bid Closing in the manner specified by the ITB.

E. Responsiveness. Compliance with the disclosure and submittal requirements of ORS 279C.370 and this rule is a matter of Responsiveness. Bids that are submitted by Bid Closing, but for which the disclosure submittal has not been made by the specified deadline, are not Responsive and shall not be considered for Contract Award.

F. City Role. The City shall obtain, and make available for public inspection, the disclosure forms required by ORS 279C.370 and this rule. The City also shall provide copies of disclosure forms to the Bureau of Labor and Industries as required by ORS 279C.835. The City is not required to determine the accuracy or completeness of the information provided on disclosure forms.

G. Substitution. Substitution of affected first-tier Subcontractors shall be made only in accordance with ORS 279C.585. Contracting Agencies shall accept Written submissions filed under that statute as public records. Aside from issues involving inadvertent clerical error under ORS 279C.585, the City is not under an obligation to review, approve or resolve disputes concerning such substitutions. See ORS 279C.590 regarding complaints to the Construction Contractors Board on improper substitution. Substitution of Minority, Women and Emerging Small Businesses are also subject to the City’s Solicitation Document.

A. Contracts shall be Awarded only to Responsible Offerors. Pursuant to ORS 279C.375, the City shall consider whether the Offeror has:

2. A satisfactory record of performance. The City shall document the record of performance of a prospective Offeror if the City finds the prospective Offeror nonresponsible under this paragraph;

3. A satisfactory record of integrity. The City shall document the record of integrity of a prospective Offeror if the City finds the prospective Offeror nonresponsible under this paragraph;

4. Qualified legally to Contract with the City, including, but not limited to, an EEO Certification and a current, valid, business license from the City. The Bureau of Purchases may determine that a Person is not legally qualified if:

b. The Person failed to make payments required by Title 7 of the City Code and has failed to make appropriate payment arrangements with the Bureau of Licenses within seven (7) Days of the receipt of

a Bid or Proposal, unless the City waives that requirement and decides to pursue collection through retention of Contract funds, or through other means.

6. Not been disqualified by the City pursuant to ORS 279C.440 and PCC Section 5.34.530.

B. In the event the City determines an Offeror is not Responsible it shall prepare a Written determination of non-responsibility as required by ORS 279B.110

A. Prequalification Application Forms. Application forms may be obtained from the Purchasing Agent. Information required on the application form shall be supplied fully and completely, unless patently inapplicable, and the Person in whose name the application is submitted, or the Authorized Representative of the corporation or association submitting the application, shall verify the information before a notary. Any prospective Bidder or Proposer shall supply further information or detail as the City may require to clarify a Prequalification application. All Prequalification applications shall be filed with or sent to the Purchasing Agent unless a Solicitation Document for a specific project otherwise provides.

B. Prequalification. Prequalification applications submitted without designation for a specific project shall be considered as general Prequalification applications and processed pursuant to ORS 279C.430. The City may require Prequalification of Bidders or Proposers for specific projects on application forms prescribed by the City. The City shall indicate in the Solicitation Document if it will require Prequalification. Prequalification means the City conditions a Bidder’s or Proposer’s submission of a Bid or Proposal upon the Bidder’s or Proposer’s Prequalification. The City shall not consider a Bid or Proposal from a Bidder or Proposer that is not Prequalified if the City required Prequalification.

C. General Prequalification Limits. All public improvement projects and painting projects estimated to cost more than $100,000 require Prequalification. The Purchasing Agent has discretion to require Prequalification for projects under $100,000 as provided in PCC Section 5.34.510 D.

D. Special Prequalification. A separate special Prequalification may be required for a specific project when the City determines that the project is of a size, Scope or complexity that special Prequalification is required or such other circumstances exist, that in the opinion of the City, a special Prequalification would be of assistance in the selection of qualified contractors.

E. Prequalification Presumed. If a Bidder or Proposer is currently Prequalified by either the Oregon Department of Transportation or the Oregon Department of Administrative Services to perform Contracts, the Bidder or Proposer shall be rebuttably presumed qualified to perform similar Work for the City upon submission of proof of such Prequalification. If a Bidder or Proposer submits proof of Prequalification, then the Bidder or Proposer is rebuttably presumed qualified. Nothing contained in this paragraph shall waive the City requirements for Prequalification, the City’s authority to require additional information or detail, or prior approval as otherwise set forth in this rule.

F. Time for Filing Prequalification Applications. Prequalification applications shall be received by the Purchasing Agent at least nine (9) business Days prior to the date of Bid or Proposal Opening unless specifically stated otherwise in the Solicitation Document. Prequalification applications received less than nine (9) business Days prior to the Bid Opening may be processed or rejected in the City’s sole discretion. If the application is not approved, notice shall be given by the City as provided by PCC Section 5.34.510 H. at least three (3) business Days prior to the Bid or Proposal Opening date.

G. Standards for Prequalification. A Bidder or Proposer may prequalify by demonstrating to the City’s satisfaction that it is a Responsible Bidder or Proposer. The Bidder or Proposer shall demonstrate that:

1. The Bidder’s or Proposer’s financial, material, equipment, facility, and personnel resources and expertise, or ability to obtain such resources and expertise, indicate the Bidder or Proposer is capable of meeting all contractual responsibilities;

4. The Bidder or Proposer is qualified to contract with the City, that is the Bidder or Proposer has the necessary licensing, certification and qualifications to contract with the City. The Bureau of Purchases may determine that such a Person is not legally qualified if:

b. The Person failed to make payments required by Title 7 of the City Code and has failed to make appropriate payment arrangements with the Bureau of Licenses within seven (7) Days of the receipt of a Bid or Proposal, unless the City waives that requirement and decides to pursue collection through retention of contract funds, or through other means.

5. The Bidder or Proposer has supplied all necessary information in connection with the inquiry concerning responsibility. If a prospective Bidder fails to promptly supply information requested concerning responsibility, the City shall base the determination of responsibility upon any available information, or may find the prospective Bidder not to be responsible.

H. Scope of Prequalification. The Purchasing Agent shall determine whether the applicant for Prequalification shall be considered Prequalified for City Bids or Proposals, and the extent of Prequalification if approved. The Purchasing Agent may limit the types of Work, materials or services on which Bids or Proposals shall be accepted from the applicant, may restrict the size or cost of project Bids to be received by the City from the applicant, or may impose any other restrictions which the Purchasing Agent finds appropriate under the circumstances. Thereafter, if the Bidder or Proposer has Prequalified, Bids or Proposals may be received from the Bidder or Proposer only within the limitations and restrictions imposed by the Prequalification decision.

1. Unless otherwise specified by the Purchasing Agent, any Bidder or Proposer whose application for Prequalification has been wholly disapproved may resubmit an application for a Prequalification no sooner than three months after the Purchasing Agent’s notice of disapproval. A Bidder or Proposer, whose application has been approved in part or who seeks a broadening of its Prequalification, or elimination of any restriction, may resubmit an application at any time provided a change of circumstances has occurred and the Bidder or Proposer submits new information to support its re-application.

2. With or without a request from the Prequalified Bidder or Proposer, the Prequalification standing and any limitation on class of Work or size of project may be reviewed further by the Purchasing Agent and broadened or restricted as determined by the Purchasing Agent to be appropriate.

I. Notice. If a Bidder’s or Proposer’s Prequalification is not approved in whole or in part, or is restricted or revoked, the City shall notify the Bidder or Proposer, specify the reasons, and inform the Bidder or Proposer of the right to a hearing

before the Purchasing Agent, who shall exercise the powers of the City Council for this purpose. The Purchasing Agent has discretion, however, to refer this matter to the Board of Appeals.

J. Appeal. The Purchasing Agent may adopt rules of procedure for the hearing, shall conduct the hearing and has the authority of the City Council as provided in ORS 279C.450. The appeal shall be conducted within 30 Days.

K. Clarification. A Bidder or Proposer may seek clarification of a Prequalification decision by Written request received by the Purchasing Agent no later than 10 Days following issuance of a determination by the Purchasing Agent. .

A. The City shall not consider a Person's Offer to do Work as a Contractor, as defined in ORS 701.005(2), unless the Person has a current, valid certificate of registration issued by the Construction Contractors Board at the time the Offer is made.

B. The City shall not consider a Person's Offer to do Work as a landscape Contractor as defined in ORS 671.520(2), unless the Person has a current, valid landscape contractors license issued pursuant to ORS 671.560 by the State Landscape Contractors Board at the time the Offer is made.

C. An Offer received from a Person that fails to comply with this rule is nonresponsive and shall be rejected as stated in ORS 279C.365(1)(k), unless contrary to federal law or subject to different timing requirements set by federal funding agencies.

A. Authority. The City may disqualify a Person from consideration of Award of the City’s Contracts after providing the Person with notice and a reasonable opportunity to be heard in accordance with this rule.

1. Standards for Conduct Disqualification. As provided in ORS 279C.440, the City may disqualify a Person for:

a. Conviction for the commission of a criminal offense as an incident in obtaining or attempting to obtain a public or private Contract or subcontract, or in the performance of such Contract or subcontract;

b. Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property or any other offense indicating a lack of business integrity or business honesty that currently, seriously and directly affects the Person's responsibility as a Contractor;

d. Violation of a Contract provision that is regarded by the City to be so serious as to justify Conduct Disqualification. A violation under PCC Section 5.34.530 A.1.d. may include but is not limited to material failure to perform the terms of a Contract or an unsatisfactory performance in accordance with the terms of the Contract. However, a Person's failure to perform or unsatisfactory performance caused by acts beyond the Person's control is not a basis for Disqualification.

2. Standards for DBE Disqualification. As provided in ORS 200.065, 200.075 or 279A.110, the City may disqualify a Person's right to submit an Offer or to participate in a Contract (e.g., as Subcontractors) as follows:

a. For a DBE Disqualification under ORS 200.065, the City may disqualify a Person upon finding that:

(1) The Person fraudulently obtained or retained or attempted to obtain or retain or aided another Person to fraudulently obtain or retain or attempt to obtain or retain certification as a disadvantaged, minority, women or emerging small business enterprise; or

(2) The Person knowingly made a false claim that any Person is qualified for certification or is certified under ORS 200.055 for the purpose of gaining a Contract or subcontract or other benefit; or

(3) The Person has been disqualified by another public contracting agency pursuant to ORS 200.065.

b. For a DBE Disqualification under ORS 200.075, the City may disqualify a Person upon finding that:

(1) The Person has entered into an agreement representing that a disadvantaged, minority, women, or emerging small business enterprise, certified pursuant to ORS 200.055 ("Certified Enterprise"), will perform or supply materials under a Public Improvement Contract without the knowledge and consent of the Certified Enterprise; or

(2) The Person exercises management and decision-making control over the internal operations, as defined by ORS 200.075(1)(b), of any Certified Enterprise; or

(3) The Person uses a Certified Enterprise to perform services under a Contract or to provide supplies under a Public Improvement Contract to meet an established Certified Enterprise goal, and such enterprise does not perform a commercially useful function, as defined by ORS 200.075(3), in performing its obligations under the Contract.

(4) If a Person is Disqualified for a DBE Disqualification under ORS 200.075, the City shall not permit such Person to participate in the City’s Contracts.

c. For a DBE Disqualification under ORS 279A.110, the City may disqualify a Person if the City finds that the Person discriminated against minority, women or emerging small business enterprises in Awarding a subcontract under a Contract with that City.

B. Notice of Intent to Disqualify. The City shall notify the Person in Writing of a proposed Disqualification personally or by registered or certified mail, return receipt requested. This notice shall:

3. Include a statement of the Person's right to a hearing if requested in Writing within the time stated in the notice and that if the Purchasing Agent does not receive the Person's Written request for a hearing within the time stated, the Person shall have waived its right to a hearing;

4. Include a statement of the authority and jurisdiction under which the hearing will be held;

5. Include a reference to the particular sections of the statutes and rules involved;

C. Hearing. The Purchasing Agent shall schedule a hearing upon the receipt of the Person's timely request. The Purchasing Agent shall notify the Person of the time and place of the hearing and provide information on the procedures, right of representation and other rights related to the conduct of the hearing prior to hearing.

D. Notice of Disqualification. The Purchasing Agent will notify the Person in Writing of its Disqualification, personally or by registered or certified mail, return receipt requested. The notice shall contain:

3. A statement of the Person's appeal rights and applicable appeal deadlines. For a Conduct Disqualification or a DBE Disqualification under ORS 279A.110, the disqualified Person must notify the Purchasing Agent in Writing within three (3) business Days after receipt of the notice of Disqualification if the Person intends to appeal the City’s decision.

A. General. A Public Improvement Contract, if Awarded, shall be Awarded to the Responsible Bidder submitting the lowest Responsive Bid, or to the Responsible Proposer submitting the best Responsive Proposal.

B. Bid Evaluation Criteria. Invitations to Bid may solicit lump-sum Offers, unit-price Offers or a combination of the two.

1. Lump Sum. If the ITB requires a lump-sum Bid, without additive or deductive alternates, or if the City elects not to Award additive or deductive alternates, Bids shall be compared on the basis of lump-sum prices, or lump-sum base Bid prices, as applicable. If the ITB calls for a lump-sum base Bid, plus additive or deductive alternates, the total Bid price shall be calculated by adding to or deducting from the base Bid those alternates selected by the City, for the purpose of comparing Bids.

2. Unit Price. If the Bid includes unit pricing for estimated quantities, the total Bid price shall be calculated by multiplying the estimated quantities by the unit prices submitted by the Bidder, and adjusting for any additive or deductive alternates selected by the City, for the purpose of comparing Bids. The City shall specify within the Solicitation Document the estimated quantity of the Procurement to be used for determination of the low Bidder. In the event of mathematical discrepancies between unit price and any extended price calculations submitted by the Bidder, the unit price shall govern.

C. Proposal Evaluation Criteria. If the City Council has exempted a Public Improvement from the Competitive Bidding requirements of ORS 279C.335(1), and has directed the use of an Alternative Contracting Method under ORS 279C.335(3), evaluation criteria shall be set forth in the Solicitation Documents.

A. General. If Awarded, the City shall Award the Contract to the Responsible Bidder submitting the lowest, Responsive Bid or the Responsible Proposer or Proposers submitting the best, Responsive Proposal or Proposals, provided that such Person is not listed by the Construction Contractors Board as disqualified to hold a Public Improvement Contract. See ORS 279C.375(2)(a). The City may Award by item, groups of items or the entire Offer provided such Award is consistent with the Solicitation Document and in the public interest.

B. Determination of Responsibility. Offerors are required to demonstrate their ability to perform satisfactorily under a Contract. Before Awarding a Contract, the City must have information that indicates that the Offeror meets the standards of responsibility set forth in ORS 279.375(2)2. To be a Responsible Offeror, the City must determine that the Offeror:

1. Has available the appropriate financial, material, equipment, facility and personnel resources and expertise, or ability to obtain the resources and expertise, necessary to demonstrate the capability of the Offeror to meet all contractual responsibilities;

2. Has a satisfactory record of Contract performance. The City should carefully scrutinize an Offeror's record of Contract performance if the Offeror is or recently has been materially deficient in Contract performance. In reviewing the Offeror's performance, the City should determine whether the Offeror's deficient performance was expressly excused under the terms of Contract, or whether the Offeror took appropriate corrective action. The City may review the Offeror's performance on both private and Public Contracts in determining the Offeror's record of Contract performance. The City shall make its basis for determining an Offeror not Responsible under this paragraph part of the Solicitation file;

3. Has a satisfactory record of integrity. An Offeror may lack integrity if The City determines the Offeror demonstrates a lack of business ethics such as violation of state environmental laws or false certifications made to the City. The City may find an Offeror not Responsible based on the lack of integrity of any Person having influence or control over the Offeror (such as a key employee of the Offeror that has the authority to significantly influence the Offeror's performance of the Contract or a parent company, predecessor or successor Person). The standards for Conduct Disqualification under PCC Section 5.34.540 may be used to determine an Offeror's integrity. The City shall make its basis for determining that an Offeror is not Responsible under this paragraph part of the Solicitation file;

4. Is qualified legally to Contract with the City, including having a current City business license and EEO certification. The Bureau of Purchases may determine that such a Person is not legally qualified if:

5. Has supplied all necessary information in connection with the inquiry concerning responsibility. If the Offeror fails to promptly supply information requested by the City concerning responsibility, the City shall base the determination of responsibility upon any available information, or may find the Offeror not Responsible.

C. City Evaluation. The City shall evaluate an Offer only as set forth in the Solicitation Document and in accordance with applicable law. The City shall not evaluate an Offer using any other requirement or criterion.

1. The City may require an Offeror to submit Product Samples, Descriptive Literature, technical data, or other material and may also require any of the following prior to Award:

a. Demonstration, inspection or testing of a product prior to Award for characteristics such as compatibility, quality or workmanship;

c. Other examinations to determine whether the product conforms to Specifications.

2. The City shall evaluate product acceptability only in accordance with the criteria disclosed in the Solicitation Document to determine that a product is acceptable. The City shall reject an Offer providing any product that does not meet the Solicitation Document requirements. The City's rejection of an Offer because it offers nonconforming Work or materials is not Disqualification and is not appealable under ORS 279C.445 or these rules.

E. Evaluation of Bids. The City shall use only objective criteria to evaluate Bids as set forth in the ITB. The City shall evaluate Bids to determine the Responsible Offeror offering the lowest Responsive Bid.

F. Clarifications. In evaluating Bids, The City may seek information from a Bidder only to clarify the Bidder's Bid. Such clarification shall not vary, contradict or supplement the Bid. A Bidder must submit Written and Signed clarifications and such clarifications shall become part of the Bidder's Bid.

G. Evaluation of Proposals. See PCC Section 5.34.850 regarding rules applicable to Requests for Proposals.

A. Bids. Except as permitted by ORS 279C.340 and PCC Section 5.34.640, when all Bids exceed the Cost Estimate, the City shall not negotiate with any Bidder prior to Contract Award. After Award of the Contract, the City and Contractor may modify the Contract only by change order or amendment to the Contract in accordance with these rules, or any applicable Contract provisions or ordinance.

B. Requests for Proposals. The City may conduct discussions or negotiations with Proposers only in accordance with the applicable requirements of PCC Section 5.34.850.

1. The City shall Award the Contract to the Offeror among those submitting identical Offers that is offering Goods or Services that have been manufactured or produced in Oregon.

3. If the City receives identical Offers, and none of the identical Offers offer Goods or Services manufactured or produced in Oregon, then the City shall Award the Contract by drawing lots among the identical Offers. The Offerors that submitted the identical Offers subject to the drawing of lots shall be given notice and an opportunity to be present when the lots are drawn.

B. Determining if Offers are Identical. The City shall consider Offers identical in price, fitness, availability and quality as follows:

1. Bids received in response to an Invitation to Bid issued under ORS 279C. 335 and PCC Chapter 5.34 are identical in price, fitness, availability and quality if the Bids are Responsive, and offer the services described in the Invitation to Bid at the same price.

2. Proposals received in response to a Request for Proposals issued under ORS 279C.400 and PCC Chapter 5.34 are identical in price, fitness, availability and quality if they are Responsive and achieve equal scores when scored in accordance with the evaluation criteria set forth in the Request for Proposals.

C. Determining if Goods or Services are Manufactured or Produced in Oregon. For the purposes of complying with PCC Section 5.34.625 A., the City may request, either in a Solicitation Document, following Closing, or at any other time determined appropriate by the City, any information it determines is appropriate and necessary to allow it to determine if the Goods or Services are manufactured or produced in Oregon. The City may use any reasonable criteria to determine if Goods or Services are manufactured or produced in Oregon, provided that the criteria reasonably relate to that determination, and provided that the same criteria applies equally to each Bidder or Proposer.

D. Procedure for Drawing Lots. In any instance when this Rule calls for the drawing of lots, the City shall draw lots by a procedure that affords each Offeror subject to the drawing a substantially equal probability of being selected, and that does not allow the Person making the selection the opportunity to manipulate the drawing of lots to increase the probability of selecting one Offeror over another.

A. When evaluating Bids pursuant to PCC Section 5.34.610, the City shall add a percentage increase to the Bid of a Nonresident Bidder equal to the percentage, if any, of the preference that would be given to that Bidder in the state in which the Bidder resides.

B. The City shall use the list prepared and maintained by the Oregon Department of Administrative Services pursuant to ORS 279A.120(4) to determine both (i) whether the Nonresident Bidder’s state gives preference to in-state Bidders, and (ii) the amount of such preference. Bidders or Proposers who believe that information is inaccurate shall notify the City prior to submitting their Bid to permit a reasonable investigation. Otherwise, the City shall rely on that information in making its determination.

A. Generally. In accordance with ORS 279C.340, if all Responsive Bids from Responsible Bidders on a competitively Bid Project exceed the City’s Cost Estimate, prior to Contract Award the City may negotiate Value Engineering and Other Options with the Responsible Bidder submitting the lowest, Responsive Bid in an attempt to bring the Project within the City’s Cost Estimate. The Subcontractor disclosure and substitution requirements of PCC Section 5.34.493 do not apply to negotiations under this rule.

1. “Cost Estimate” means the City’s most recent pre-Bid, good faith assessment of anticipated Contract costs, consisting either of an estimate of an architect, engineer or other qualified professional, or confidential cost calculation Worksheets, where available, and otherwise consisting of formal planning or budgetary documents.

2. “Other Options” means those items generally considered appropriate for negotiation in the RFP process, relating to the details of Contract performance as specified in PCC Section 5.34.850, but excluding any material requirements previously announced in the Solicitation process that would likely affect the field of competition.

4. “Value Engineering” means the identification of alternative methods, materials or systems which provide for comparable function at reduced initial or life-time cost. It includes proposed changes to the plans, Specifications, or other Contract requirements which may be made, consistent with industry practice, under the original Contract by mutual agreement in order to take advantage of potential cost savings without impairing the essential functions or characteristics of the Public Improvement. Cost savings include those resulting from Life Cycle Costing, which may either increase or decrease absolute costs over varying time periods.

C. Rejection of Bids. In determining whether all Responsive Bids from Responsible Bidders exceed the Cost Estimate, only those Bids that have been formally rejected, or Bids from Bidders who have been formally disqualified by the City, shall be excluded from consideration.

D. Scope of Negotiations. Contracting Agencies shall not proceed with Contract Award if the Scope of the Project is significantly changed from the original Bid. The Scope is considered to have been significantly changed if the pool of competition would likely have been affected by the change; that is, if other Bidders would have been expected by the City to participate in the Bidding process had the change been made during the Solicitation process rather than during negotiation. This rule shall not be construed to prohibit resolicitation of trade subcontracts.

E. Discontinuing Negotiations. The City may discontinue negotiations at any time, and shall do so if it appears to the City that the apparent low Bidder is not negotiating in good faith or fails to share cost and pricing information upon request. Failure to rebid any portion of the project, or to obtain Subcontractor pricing information upon request, shall be considered a lack of good faith.

F. Limitation. Negotiations may be undertaken only with the lowest Responsive, Responsible Bidder pursuant to ORS 279C.340.

G. Public Records. ORS 279C.340 shall not be construed as creating any additional public records where that result is not otherwise contemplated by the Public Records law, ORS Chapter 192. Records of a Bidder used in Contract negotiations may not become public records unless they are also submitted to the City.

1. The City may reject any Offer upon finding that to accept the Offer may impair the integrity of the Solicitation process or that rejecting the Offer is in the public interest.

a. Is contingent upon the City's acceptance of terms and conditions (including Specifications) that differ from the Solicitation Document;

c. Attempts to prevent public disclosure of matters in contravention of the terms and conditions of Solicitation Document or in contravention of applicable law;

d. Offers Work or goods that fail to meet the Specifications of the Solicitation Document;

g. Is not in substantial compliance with all prescribed public Solicitation procedures.

h. Omits, or is unclear as to, the price; or the price cannot be determined in the Solicitation Documents;

i. Requires a delivery date different from that required by the Solicitation Document;

j. The Offeror failed to substantially comply with any Good Faith Efforts Specifications;

a. Has not been Prequalified under ORS 279C.430 and the City required mandatory Prequalification;

c. Has been declared ineligible under ORS 279C.860 by the Commissioner of Bureau of Labor and Industries and the Contract is for a Public Work;

d. Is listed as not qualified by the Construction Contractors Board or the Landscape Contractors Board, when required;

e. Has not met the requirements of ORS 279A.105 if required by the Solicitation Document;

f. Has not submitted properly executed Bid or Proposal Security as required by the Solicitation Document;

g. Has failed to provide the certification required under PCC Section 5.34.645 C.;

B. Form of Business. For purposes of this rule, the City may investigate any Person submitting an Offer. The investigation may include that Person's officers, Directors, owners, affiliates, or any other Person acquiring ownership of the Person to determine application of this rule or to apply the Disqualification provisions of ORS 279C.440 to 279C.450 and PCC Section 5.34.550.

C. Certification of Non-Discrimination. The Offeror shall certify and deliver to the City Written certification, as part of the Offer that the Offeror has not discriminated and will not discriminate against a disadvantaged business enterprise, or minority, women or emerging small business enterprises in obtaining any required subcontracts. Failure to do so shall be grounds for rejection.

D. Rejection of all Offers. The City may reject all Offers for good cause upon the City’s Written finding it is in the public interest to do so. The City shall notify all Offerors of the rejection of all Offers, along with the good cause justification and finding.

E. Criteria for Rejection of All Offers. The City may reject all Offers upon a Written finding that:

1. The content of, an error in, or the omission from the Solicitation Document, or the Solicitation process unnecessarily restricted competition for the Contract;

2. The price, quality or performance presented by the Offerors is too costly or of insufficient quality to justify acceptance of the Offer;

3. Misconduct, error, or ambiguous or misleading provisions in the Solicitation Document threaten the fairness and integrity, or the appearance of fairness and integrity of the Competitive process;

4. Causes other than legitimate market forces threaten the integrity of the Competitive Procurement process. These causes include, but are not limited to, those that tend to limit competition such as restrictions on competition, collusion, corruption, unlawful anti-Competitive conduct and inadvertent or intentional errors in the Solicitation Document;

5. The City cancels the Solicitation in accordance with PCC Section 5.34.660; or

6. Any other circumstance indicating that Awarding the Contract would not be in the public interest.

A. Notice: The City shall issue a Notice of Intent to Award a public improvement Contract to all Offerors. If the Solicitation was posted by Electronic means, however, the City may post the Intent to Award Electronically in the same manner as the Solicitation.

1. Unless otherwise provided in the Solicitation Document, the City shall post notice of the City’s intent to Award Contracts on the City’s website or by Written notice posted at the office of the Bureau of Purchases. For Contracts in excess of $500,000, a Written notice of intent to Award shall be mailed by regular mail to all Bidders or Proposers in addition to posting as provided above.

2. The Notice shall be posted at least seven (7) Days before the Award of a Contract, unless the Purchasing Agent determines that a compelling governmental interest, such as loss of funding, safety, public inconvenience or loss of taxpayer or ratepayer funds requires prompt execution of the Public Contract. If so, the Purchasing Agent shall specify in the Notice of the Intent the time period when the Contract will be Awarded and shall cause the Solicitation file to be documented with the specific reasons for the shorter notice period.

B. The City's Award shall not be final until the later of the following three dates:

1. Seven (7) Days after the date of notice of intent to Award, unless the Solicitation Document provided a different period for protest of Contract Award or the Purchasing Agent determined that a shorter period of time was necessary pursuant to PCC Section 5.34.650 A.2. For purposes of this paragraph, the Day on which the Notice is posted from which the seven Days or other time period shall begin to run shall not be included, but the last Day of the period shall be included;

2. The City provides a Written response to all timely-filed protests that denies the protest and affirms the Award; or

A. Cancellation in the Public Interest. The City may cancel a Solicitation for good cause if the City finds that the cancellation is in the public interest. The reasons for cancellation shall be made part of the Solicitation file.

B. Delay or Suspension. Any Solicitation may be delayed or suspended in whole, or in part, when the delay or suspension is in the best interest of the City as determined by the City.

C. Costs. The City is not liable to any Offeror for costs, expenses or losses caused by the cancellation, delay or suspension.

D. Notice. If the City cancels, delays or suspends a Solicitation prior to Opening, the City shall provide notice of cancellation in accordance with PCC Section 5.34.310. Such notice of cancellation shall:

3. If appropriate, explain that an opportunity will be given to compete on any re-solicitation.

B. After Offer Opening. If the City rejects all Offers, the City will retain all such Offers as part of the City's Solicitation file. If a Request for Proposals is cancelled after Proposals are received, the City may return a Proposal to the Proposer that submitted it. The City shall keep a list of returned Proposals in the file for the Solicitation.

A. Basis of Award. After Award, the City shall make a record showing the basis for determining the successful Offeror part of the City's Solicitation file.

b. Written justification for any rejection of lower Bids or Bids rejected as a result of a failure to meet mandatory Bid requirements.

b. Written justification for any rejection of higher scoring Proposals or for failing to meet mandatory requirements of the Request for Proposal; and

c. If the City permitted negotiations in accordance with PCC Section 5.34.850 the City's completed evaluation of the initial Proposals and the City's completed evaluation of final Proposals.

A. Time for Offer Acceptance. An Offer submitted as a Firm Offer is irrevocable, valid and binding on the Offeror for not less than 30 Days from Closing unless otherwise specified in the Solicitation Document.

B. Extension of Acceptance Time. The City may request, orally or in Writing, that Offerors extend, in Writing, the time during which the City may consider and accept their Offer(s). If an Offeror agrees to such extension, the Offer shall

continue as a Firm Offer, irrevocable, valid and binding on the Offeror for the agree-upon extension period. The extension may occur after the 30-Day time period referenced in PCC Section 5.34.680 A.

A. Contract Documents. To the extent required, the City shall deliver to the successful Offeror, a Signed purchase order, Price Agreement, or other Contract document(s), as applicable.

B. Notification to Unsuccessful Offerors. A Person may obtain tabulations of Awarded Bids or evaluation summaries of Proposals for a nominal charge, in Person or by submitting to the City a Written request accompanied by payment. Such request shall provide the Solicitation Document number and enclose a self-addressed, stamped envelope.

C. Bid Tabulations and Award Summaries. Upon request of any Person the City shall provide tabulations of Awarded Bids or evaluation summaries of Proposals for a nominal charge that may be payable in advance. Requests must contain the Solicitation Document number and, if requested, be accompanied by a self-addressed, stamped envelope. The City may also provide tabulations of Bids and Proposals Awarded on designated Web sites or on the City’s web site.

D. Copies from Solicitation Files. Any Person may obtain copies of material from Solicitation files upon payment of a reasonable copying charge.

A. Public Improvement Contracts. Unless the required performance bond is waived under ORS 279C.380(1)(a), excused in cases of Emergency under ORS 279C.380(4), or unless the City Council, acting as the Local Contract Review Board, exempts a Contract or classes of Contracts from the required performance bond and payment bond pursuant to ORS 279C.390, the Contractor shall execute and deliver to the City a performance bond and a separate payment bond each in a sum equal to the Contract Price for all Public Improvement Contracts. Notwithstanding any exemption, the Purchasing Agent may require a performance bond, or payment bond, or both, in the Purchasing Agent’s sole discretion.

B. Other Construction Contracts. The City may require performance security for other construction Contracts that are not Public Improvement Contracts. Such requirements shall be expressly set forth in the Solicitation Document.

C. Requirement for Surety Bond. The City shall accept only a performance bond and payment bond furnished by a surety company authorized to do business in Oregon and who is duly listed in the United States Treasury List as published in the Federal Register or is otherwise approved by the City Attorney each in the amount of 100 percent of the Contract price unless otherwise specified in the Solicitation Document or such substitute security is approved by the City Attorney’s office. The surety bond shall have the company’s sealed affixed to it, be signed by the surety’s Attorney in Fact, and have attached the Power of Attorney for the Attorney in Fact. The City Attorney may waive the requirement of the corporate seal.

D. Time for Submission. The apparent successful Offeror must furnish the required performance and payment security within 10 Days after notification by the City. If the Offeror fails to furnish the performance security as requested, the City may reject the Offer and Award the Contract to the Responsible Bidder with the next lowest Responsive Bid or the Responsible Proposer with the next highest-scoring Responsive Proposal, and, at the City's discretion, the Offeror shall forfeit its Bid or Proposal Security.

A. An Affected Person may protest the City's approval of an individual or Class Exemption.

1. Time: A Written protest of the City's approval shall be provided to the Purchasing Agent not later than seven (7) Days after the approval of the Individual or Class Exemption unless a different time period is provided in the Notice. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule or such different time period.

a. Sufficient information to identify the Request that is the subject of the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.34.700 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.34.700 B.2., the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

D. Optional City Response: In addition to the requirements of 5.34.700 C, the Purchasing Agent may do any of the following:

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

1. An Affected Person may not seek judicial review of the City Council’s approval of an Individual or Class Exemption unless it Files an appeal in accordance with this rule and has exhausted all avenues of appeal provided by the Purchasing Agent.

2. Judicial review is not available if the Request is denied by the City Council, Contract Board of Appeals or is withdrawn by the Purchasing Agent.

A. An Affected Person may protest their exclusion from multi-tiered Solicitations. Protest of Contract terms and conditions, however, shall be made pursuant to PCC Section 5.34.720.

1. If no other protest remedies are provided in the Solicitation Document, an Affected Person can file a Written protest to the Award within seven (7) Days after the issuance of the Notice of Intent to Award if the protest meets the requirements of PCC Section 5.34.710 C., pursuant to PCC Section 5.34.730 [protests of Contract Award]; or

2. If expressly required or permitted by the Solicitation Document, an Affected Person can file a Written protest after being excluded from the Competitive Range or after being excluded from any subsequent stages of Procurement.

C. Basis of Protest. An Affected Person may protest its exclusion from the Competitive Range or from subsequent stages of a Procurement only if:

2. The City made a mistake that, if corrected, would have made the Affected Person eligible to participate in the next stage of the Solicitation process.

1. Time. If the Solicitation Document permits or requires protests prior to the City’s issuance of a Notice of Intent to Award, an Affected Person must submit a Written protest specifying its basis within seven (7) Days after the Affected Person was excluded from participating further in the Procurement, unless the Solicitation Document specifies a shorter period of time.

a. Sufficient information to identify the errors that led to the Affected Person’s exclusion from the Competitive Range or from subsequent stages of a Procurement;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

E. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.34.710 D.2., and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.34.710 D.2., the Purchasing Agent shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

F. Optional City Response: In addition to the requirements of PCC Section 5.34.710 E., the City may take any or all of the following actions:

1. Agree with the Protest, in whole or in part, and permit the Affected Person to participate in the next stage of the Solicitation process;

2. Issue a Written response to the protest and provide that determination to the Affected Person.

4. Refer the protest to the City Council for consideration along with the Purchasing Agent’s Award; or

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

G. Judicial Review. An Affected Person may not seek judicial review of its elimination from a preliminary stage of a multi-tiered process unless it files a protest in accordance with this rule and has exhausted all avenues of appeal provided by the Purchasing Agent.

5.34.720 Protests and Judicial Review of Solicitation Documents and the Solicitation Processes other than Multi-Tier Processes.

A. An Affected Person may protest the Solicitation process or the Solicitation Document for Offers solicited pursuant to Competitive sealed Bidding or through an alternative contracting process.

1. The exclusive method for protesting individual and class exemptions, is through PCC Section 5.34.700 and not this rule. The exclusive process of protesting a multi-tiered Solicitation process is pursuant to PCC Section 5.34.710 and not this rule.

2. Prior to submitting a protest regarding Solicitation Documents or the Solicitation process, an Affected Person may seek clarification of any provision of the Solicitation Document. The City's clarification to an Offeror, whether orally or in Writing, does not change the Solicitation Document and is not binding on the City unless the City amends the Solicitation Document by Addendum.

1. Time: A Written protest regarding a Solicitation Document or the procurement process shall be provided to the Purchasing Agent within seven (7) Days after a Solicitation Document is advertised unless the Solicitation Document requires a shorter period of time. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule.

a. Sufficient information to identify the portion or portions of the Solicitation Document that are being protested or the solicitation process or processes that are the subject of the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.34.720 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.34.720 B.2., the Purchasing Agent shall issue a decision in Writing and provide that decision to the Affected Person no less than three (3) business Days before Offers are due, unless a Written determination is made by the Purchasing Agent that circumstances exist that require a shorter time limit.

5. If the Purchasing Agent receives protest from an Affected Person in accordance with this rule, the Purchasing Agent may extend Closing if the City determines an extension is necessary to consider the protest and to issue an Addendum to the Solicitation Document.

D. Optional City Response: In addition to the requirements of PCC Section 5.34.720 C., the Purchasing Agent may take any or all of the following:

1. Agree with the protest and make any necessary corrections to the Solicitation Document or Procurement process;

2. Issue a Written response to the protest and provide that decision to the Affected Person.

5. Any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

E. Judicial Review. An Affected Person may not seek judicial review of the City’s final decision regarding its protest of the contents of a Solicitation Document or the Solicitation process unless it fully has complied with the Protest requirements of this rule and has exhausted all avenues of appeal provided by the Purchasing Agent.

5.34.725 Administrative Reconsideration as a Result of Rejection for Failure to Meet DBE Requirements.

A. This Code provision applies only to City Solicitation Documents concerning Federal-Aid Certified projects that contain Supplemental Contract provisions implementing the requirements of the United States Department of Transportation and Part 26, Title 49 of the Code of Federal Regulations concerning Disadvantaged Business Enterprises (DBEs).

B. An Affected Person whose Offer is rejected as nonresponsive as a result of noncompliance with the DBE requirements of the Solicitation Document may seek administrative reconsideration of that decision from the Oregon Department of Transportation (ODOT) in the time and manner set forth in the Solicitation Document.

C. An Affected Person whose Offer has been rejected as nonresponsive to a Solicitation Document described in Paragraph A for reasons other than noncompliance with the DBE requirements of the Solicitation Document shall submit a protest to the Purchasing Agent in accordance with the applicable provisions of City Code and not to ODOT. Similarly, protests of any matters other than bid rejection for failure to meet DBE requirements shall be considered by the Purchasing Agent in accordance with the applicable provision of City Code and not by ODOT.

D. An Affected Person whose Offer has been rejected as nonresponsive on multiple grounds, including a failure to meet the DBE requirements of the Solicitation Document, shall seek administrative reconsideration from ODOT regarding the rejection regarding DBE requirements and shall file a protest with the Purchasing Agent regarding any other grounds on which rejection was made in accordance with the applicable provision of City Code.

E. An Affected person may not seek judicial review unless it fully has complied with the requirements of this rule and exhausted all avenues of administrative reconsideration, protest, or both.

A. An Affected Person may protest the Award of a Contract, or the intent to Award a Contract, whichever occurs first, if:

1. The Affected Person would be eligible to be Awarded the Public Contract in the event that the protest were successful; and

b. The City failed to conduct the evaluation of Proposals in accordance with the criteria or processes described in the Solicitation Document:

c. The City abused its discretion in rejecting the Affected Person’s Bid or Proposal as nonresponsive; or

d. The City’s evaluation of Offers or the City’s subsequent determination of Award is otherwise in violation of these rules, ORS Chapter 279C or ORS Chapter 279A.

1. Time: A Written protest of the Notice of Intent to Award or Award itself shall be provided to the Purchasing Agent within seven (7) Days after the City posts a notice that it will make a Contract Award, or the Contract is Awarded, whichever occurs first, unless the Solicitation Document specified a shorter period of time. The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule or such different time period as may be provided in the Solicitation Document.

a. Sufficient information to identify the Contract or Notice of Intent to Award that is the subject of the protest;

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

d. A description of the resulting harm to the Affected Person submitting the protest; and

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.34.730 B.2, and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.34.730 B.2., the Purchasing Agent shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business Days unless a Written determination is made by the City that circumstances exist that require a shorter time limit.

D. Optional City Response: In addition to the requirements of PCC Section 5.34.730 C., the City may take any or all of the following:

1. Agree with the Protest and issue a revised Notice of Intent to Award or take any other corrective action that may be necessary to ensure that the Contract is Awarded to the appropriate Offeror;

2. Issue a Written response to the protest and provide that decision to the Affected Person.

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest.

E. Judicial Review. An Affected Person may not seek judicial review unless it fully has complied with the protest requirements of this rule and has exhausted all avenues of appeal provided by the Purchasing Agent.

(Amended by Ordinance No. 179802, effective December 7, 2005.) Protests of any violation of ORS Chapter 279C, for which no administrative remedy is otherwise provided by this Code, are subject to this rule:

A. An Affected Person can file a protest under this section only if a Public Contract is about to be Awarded or has been Awarded and:

1. An alleged violation of ORS 279C has occurred in the Solicitation process and violation has resulted or will result in the unlawful Award of a Contract or the unlawful failure to Award the Contract;

2. The alleged violation deprived the Affected Person of the Award of the Contract or the opportunity to compete for the Award of the Contract;

3. The Affected Person would have been a Responsible Bidder, Proposer or Offeror qualified to receive the Award of the Contract;

4. The Affected Person gave Written notice to the City describing the alleged violation no later than seven (7) Days after the date on which the alleged violation occurred and in no event more than seven (7) Days after the date of the execution of the Contract; and

5. If the alleged violation is of ORS 279C, then it is one for which no judicial review is provided by another section of PCC Chapter 5.34.

1. Time: The Purchasing Agent shall not consider a protest submitted after the timeline established for submitting such protest under this rule and shall not consider a protest under this section if a right to protest is elsewhere provided by this Code.

a. Sufficient information to identify the Solicitation that is the subject of the protest;

b. A detailed statement of the alleged violation and all the legal and factual grounds for the protest.

c. Evidence or supporting documentation that supports the grounds on which the protest is based;

C. Required City Response. The City shall take the following actions, as appropriate:

1. The City shall inform the Affected Person in Writing if the protest was not timely filed;

2. The City shall inform the Affected Person if it failed to meet the requirements of PCC Section 5.34.740 B.2. and the reasons for that failure;

3. If the protest was timely filed and provides the information required by PCC Section 5.34.740 B.2., the City shall issue a decision in Writing and provide that decision to the Affected Person within seven (7) business Days unless a Written determination is made by the City that circumstances exist that require a longer time limit.

D. Optional City Response: In addition to the requirements of PCC Section 5.34.740 C., the City may take any or all of the following:

2. Issue a Written response to the protest and provide that decision to the Affected Person;

5. Take any other action that is in the best interest of the City while giving full consideration to the merits of the protest

E. Judicial Review. An Affected Person may not seek judicial review of any violations covered by this rule unless it fully has complied with the protest requirements of this rule and has exhausted all avenues of appeal provided by the Purchasing Agent.

A. The denial, revocation or revision of a Prequalification decision or a decision to disqualify a prospective Offeror must submit Written appeal to the City within three (3) business Days after receipt of the City’s notice.

C. The City Council delegates its authority to conduct a hearing to the Purchasing Agent. The Purchasing Agent may subdelegate the authority to conduct a hearing to any Person(s) the Purchasing Agent deems appropriate, including the Board of Appeals.