Chapter 5.01
DELEGATION OF AUTHORITY TO
OBLIGATE THE CITY
(Repealed by Ordinance Nos. 174509
and 174904, effective January 1, 2001.)
Chapter 5.04
FUNDS
Sections:
5.04.010 Provisions Made For.
5.04.020 Sundry Trusts Fund.
5.04.030 Trustees’ Fund.
5.04.040 Parking Meter Fund.
5.04.050 Golf Fund.
5.04.070 Bonded Debt Interest and Sinking Fund.
5.04.140 Parking Facilities Fund.
5.04.150 Parking Facilities Bond Redemption Fund.
5.04.170 Revenue Sharing Fund.
5.04.175 State Revenue Sharing Fund.
5.04.180 Fleet Services Operating Fund.
5.04.190 Communications Service Operating Fund.
5.04.200 Printing and Distribution Services Operating Fund.
5.04.210 Improvement Warrant Sinking Fund.
5.04.220 Economic Development Trust Fund.
5.04.230 Insurance and Claims Operating Fund.
5.04.240 Worker’s Compensation Self Insurance Operating Fund.
5.04.250 System Development Charge Sinking Fund.
5.04.270 Washington County Water Supply Construction Fund.
5.04.280 Washington County Water Supply Bonded Debt Service Sinking Fund.
5.04.290 Water Growth Impact Charge Trust Fund.
5.04.300 Bull Run Fund.
5.04.310 St. Johns Landfill End Use Plan Fund.
5.04.320 Sewer Revolving Loan Fund.
5.04.400 Sewer System Operating Fund.
5.04.410 Sewer System Construction Fund.
5.04.420 Sewer System Debt Redemption Fund.
5.04.430 Sewer System Debt Proceeds Fund.
5.04.440 Sewer System Rate Stabilization Fund.
5.04.450 Sewer System Safety Net Fund.
5.04.460 Use of Sewage Disposal Fund.
5.04.470 Portland Police Fitness Room Trust Fund.
5.04.480 Property Management License Fund.
5.04.490 Graffiti Nuisance Abatement Trust Fund.
5.04.010 Provisions Made For.
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.
5.04.020 Sundry Trusts Fund.
(Amended by Ordinance No. 173369, effective May 12, 1999.) The Sundry Trusts Fund, created by Ord. 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 (Repealed by Ord. 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 Ord. No. 150375; passed and effective Sept. 11, 1980.)
D. Health Protection Account. (Repealed by Ord. No. 150375; passed and effective Sept. 11, 1980.)
E. Recreation Account. (Repealed by Ord. 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 Ord. 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 Ord. No. 150375; passed and effective Sept. 11, 1980.)
5.04.030 Trustees’ Fund.
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.
5.04.040 Parking Meter Fund.
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.
5.04.050 Golf 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.
5.04.070 Bonded Debt Interest and Sinking Fund.
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.
5.04.140 Parking Facilities Fund.
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.
5.04.150 Parking Facilities Bond Redemption Fund.
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.
5.04.160 Sewage Disposal Fund.
(Repealed by Ordinance No. 160515 effective Mar. 28, 1988.) See Sections 5.04.400 - 460.
5.04.165 Countercyclical Fund.
(Repealed by Ordinance No. 150375; passed and effective Sept. 11, 1980.)
5.04.170 Revenue Sharing Fund.
(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.
5.04.175 State Revenue Sharing Fund.
(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.
5.04.180 Fleet Services Operating Fund.
(Added by Ord. No. 161018, amended by 163837, Feb. 6, 1991.) The Fleet Services Operating Fund is hereby created as a working capital fund within the Bureau of General Services, described in Chapter 3.40. 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.
Short-term loans from the General Fund to the Fleet Services 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.
5.04.185 Facilities Services Operating Fund.
(Added by Ord. No. 163837, Feb. 6, 1991.) 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 Chapter 3.40. 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 provided 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.
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 of 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.
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. Should there be any net revenue from these properties, it will be transferred to the General Fund at the end of each fiscal year.
Any property acquired by the City from any source must be inventoried with the Bureau of General Services.
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.
5.04.190 Communications Service Operating Fund.
(Added by Ord. No. 161018, amended by 163837, Feb. 6, 1991.) The Communications Service Operating Fund is hereby created as a working capital fund within the Bureau of General Services, described in Chapter 3.40. 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.
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.
5.04.200 Printing and Distribution Services Operating Fund.
(Added by Ord. No. 161018, amended by 163837, Feb. 6, 1991.) The Printing and Distribution Services Operating Fund is hereby created as a working capital fund within the Bureau of General Services, described in Chapter 3.40. 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. 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.
5.04.210 Improvement Warrant Sinking Fund.
(Added by Ord. 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.
5.04.220 Economic Development Trust Fund.
(Added by Ord. 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.
5.04.230 Insurance and Claims Operating Fund.
(Added by Ord. No. 142290; amended by 150375; passed and effective Sept. 11, 1980.) The Insurance and Claims Operating Fund is hereby created as a working capital fund under the Bureau of Risk Management, described in Section 3.90.090 of this Code. The initial contributed equipment for the operation of this Fund shall be by transfer from the general fixed asset group of accounts of those assets now in use by the insurance and claims Section of the Bureau of Financial Affairs. 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.
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.
5.04.240 Workers’ Compensation Self Insurance Operating Fund.
(Added by Ord. No. 144762; amended by 150375; passed and effective Sept. 11, 1980.) The Workers’ Compensation Self Insurance Operating Fund is hereby created as a working capital fund under the Bureau of Risk Management, described in Section 3.90.090 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.
5.04.250 System Development Charge Sinking Fund.
(Added by Ord. 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.
5.04.270 Washington County Water Supply Construction Fund.
(Added by Ord. 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.
5.04.280 Washington County Water Supply Bonded Debt Service Sinking Fund.
(Added by Ord. 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.
5.04.290 Water Growth Impact Charge Trust Fund.
(Added by Ord. 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.
5.04.300 Bull Run Fund.
(Added by Ord. 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.
5.04.310 St. Johns Landfill End Use Plan Fund.
(Added by Ord. 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.
5.04.320 Sewer Revolving Loan Fund.
(Added by Ord. 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.
5.04.400 Sewer System Operating Fund.
(Added by Ord. 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.
5.04.410 Sewer System Construction Fund.
(Added by Ord. 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.
5.04.420 Sewer System Debt Redemption Fund.
(Added by Ord. 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.
5.04.430 Sewer System Debt Proceeds Fund.
(Added by Ord. 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.
5.04.440 Sewer System Rate Stabilization Fund.
(Added by Ord. 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.
5.04.450 Sewer System Safety Net Fund.
(Added by Ord. 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.
5.04.460 Use of Sewage Disposal Fund.
(Added by Ord. 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.
5.04.470 Portland Police Fitness Room Trustee Account.
(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.
5.04.480 Property Management License Fund.
(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.
5.04.490 Graffiti Nuisance Abatement Trust Fund.
(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.
Chapter 5.08
PAYMENT OF SALARIES, WAGES
AND EXPENSES
Sections:
5.08.010 Biweekly Pay Period.
5.08.020 Preparation and Certification of Biweekly Time Reports.
5.08.030 Computing Daily and Hourly Rates of Pay.
5.08.040 When Auditor to Draw Checks.
5.08.050 Allowance for Use of Private Vehicles.
5.08.060 Safety Glasses.
5.08.070 Clothing Allowance.
5.08.075 Year Defined.
5.08.090 Travel Expenses.
5.08.095 Miscellaneous Expenses.
5.08.100 Rules for Travel and Miscellaneous Expenses.
5.08.105 Reimbursement to Employees in Educational Programs Authorized by Council.
5.08.110 Bus Fare for Meter Readers.
5.08.120 Payment of Salaries and Wages at Other than Times Specified.
5.08.130 Salaries Chargeable to More than One Fund.
5.08.140 Salary Deductions.
5.08.150 State Tax Street Fund.
5.08.160 Delivery of Checks Payable to Deceased Persons.
5.08.170 Hold Harmless Agreements.
5.08.180 Effect of Death Upon Assignments and Levies.
5.08.010 Biweekly Pay Period.
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.
5.08.020 Preparation and Certification of Biweekly Time Reports.
(Amended by Ord. 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 Ord. 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.
5.08.030 Computing Daily and Hourly Rates of Pay.
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.
5.08.040 When Auditor to Draw Checks.
(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.
5.08.050 Allowance for Use of Private Automobile.
(Amended by Ordinance Nos. 133159, 137586, 142117, 142219, 142281, 142450, 144605, 159438, 164221, 168313, 169321 and 173369, effective May 12, 1999.)
A. City officers and employees using privately owned vehicles on City business, when authorized by the Appropriation Unit Manager, shall be reimbursed for use of such vehicles at a rate fixed by Council. Non-represented employees may be paid a flat rate, to be based on Internal Revenue Service guidelines, when authorized by the Commissioner-In-Charge or the City Auditor or their designated Bureau Managers. In no event shall the flat rate exceed Internal Revenue Service guidelines. Mileage claims reimbursements shall be filed with the Accounts Payable section of the Accounting Division by the 5th day following the end of an accounting period and shall be paid by the 10th day following the end of the accounting period.
Payment of daily rate claims or allowance for City non-represented employees shall be included in the employee’s last payroll check of each month. Reimbursement requests must be filed with the Central Payroll section of the Accounting Division not later than the Friday of the last payroll submission week of the month in order to be included in the employee’s payroll check. All claims shall be on forms provided by the Accounting Division and shall show the days and, when applicable, the odometer readings and mileage of the vehicle used on City business.
B. The Risk Management Division shall obtain a public liability insurance policy or provide the necessary funding through a self-insurance program protecting the City, its officers, agents and employees with limits of not less than the maximum statutory limits of liability imposed on municipalities of the State of Oregon.
C. Employees authorized to operate private vehicles on City business are responsible for carrying liability insurance. The City’s vehicle liability program provides coverage to employees to supplement their personal insurance while using privately-owned vehicles on authorized, official business. The City’s coverage provides indemnification for the employee’s liability in conjunction with the employee’s personal policy limits. No collision, personal injury protection, uninsured motorist, or comprehensive coverage is provided by the City for private vehicles. Medical coverage for the employee is limited to that which is provided by the employee’s health insurance coverage or worker’s compensation.
5.08.060 Safety Glasses.
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.
5.08.070 Clothing Allowance.
(Amended by Ord. 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.
5.08.075 Year Defined.
“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.
5.08.090 Travel Expenses.
(Amended by Ord. No. 136907, 164221; and 169321, Sept. 20, 1995.) The following policies are established to govern the eligibility for, and payment of, expenses incurred by City Officers, employees, members of boards and commissions, and others during authorized travel directly related to City business. Expenses are to be part of each bureau’s annual budget, weighed against other possible use of the same resources. All travel must be authorized by the Commissioner-In-Charge, who may delegate such approval authority to his/her office staff or their designated Bureau Managers.
A. Authorized Travel - Generally, travel for City business may include conventions, conferences, meetings of professional associations, training, and meetings with others from which the City will derive benefit through the attendance of a representative. All requests to incur City travel costs must identify the benefit to the City.
B. Authorized Expenses - Generally. City officials and employees should exercise good judgement, regard for economy, and recognition of proper use of public monies while traveling or incurring expenses in connection with City business. Any expense requested for reimbursement or payment by the City must be documented to be directly and clearly related to the conduct of City business. Expenses to be paid or reimbursed by the City may include: transportation to and from destination, lodging, meals, local transportation at the destination - if required, parking fees, one brief personal long distance call per day, and necessary incidental expenses required to transact City business, such as telephone, postage, or supplies. Reimbursement will be by receipt or contemporaneous record of actual cost only; per diem allowances will not be used.
Meals should generally be for a single individual. When entertaining others, receipts must state the date, names of persons at the meal, and the nature of City business conducted at the meal. Alcoholic beverages will not be reimbursed by the City. Reimbursement will be on an actual cost basis; however costs that exceed objective guidelines on costs in the locale must be justified.
C. Transportation, Mileage, and use of Personal Vehicles. Authorized travel should consider both economy, and the best use of time when choosing a means of travel. Transportation costs, travel time, worker effectiveness, and en route meals and lodging are to be considered when determining least cost. Carpooling is encouraged and should be considered in determining least cost. Travel should be coordinated with one or more designated City travel agencies. The Bureau of Purchasing and Stores is directed to periodically recommend selection of one or more designated City travel agencies.
In those instances where a private vehicle is authorized by the Bureau Manager, the employee is required to have personal automobile insurance as required by law and other City standards prior to departure. Reimbursement will be at the current IRS mileage rate or the lowest cost alternative transportation, whichever is less, unless governed by a union contract or flat rate allowances for use of private vehicles.
5.08.095 Miscellaneous Expenses.
(Added by Ord. No. 164221, May 29, 1991.)
A. Miscellaneous Expenses - Generally. There is a City business interest in supporting and encouraging the use of Citizen volunteers. Volunteers should be freed from out-of-pocket costs of volunteering. When appropriate to the needs of the City and within budget authority, the City will pay or reimburse expenses for parking costs, occasional meals for City volunteers, and volunteer appreciation receptions with non-alcoholic beverages.
There is a business interest in supplying light non-alcoholic refreshment at official citywide functions (such as Council informals, Citywide coordinating meetings, and employee training sessions) or at recognition receptions for retiring employees.
Employee awards (cash, flowers, or gifts) up to $50 in value may be paid. Bureaus should take care that such awards remain occasional and motivational rather than becoming expected. A business related explanation of the benefit to the City must be submitted with the payment request.
In order to promote economic development or build community cooperation, Elected Officials or their designees may be reimbursed for business meals, flowers, or official gifts. Such payments or reimbursements must be documented by receipts which state the date, name of recipient, and the nature of the business or relationship with the City and public interest reason for the expense. Dues for professional organizations may be paid at Bureau discretion. Membership dues for non-discriminatory civic or charitable organizations may be paid at bureau discretion only if there is a documented benefit to the City from an employee’s participation. Such dues must be clearly identified during the budget process.
5.08.100 Rules For Travel and Miscellaneous Expenses.
(Added by Ord. No. 164221, May 29, 1991.)
A. Development of Rules. The Office of Finance and Administration is directed to develop implementing rules and procedures that will clarify and define more precisely the principles expressed in Sections 5.08.050, 5.08.090 and 5.08.095. These implementing rules and procedures shall be sent to the Council for review and adoption by resolution either as recommended or modified. The Office of Finance and Administration shall have the authority to periodically review and make recommendations to revise said rules.
B. Administration. Requests for payment/reimbursement for items covered by this policy shall be reviewed by the Accounting Division of the Bureau of Administrative Services and the Auditor’s Office before payment is made. Expenditure records shall be accessible to the media and citizen inquiry.
5.08.105 Reimbursement to employees in Educational Programs Authorized by the Council.
(Added by Ord. 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.
5.08.110 Bus Fare for Meter Readers.
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.
5.08.120 Payment of Salaries and Wages at Other Than Times Specified.
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.
5.08.130 Salaries Chargeable to More Than One Fund.
(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.
5.08.140 Salary Deductions.
(Replaced by Ordinance No. 172205; amended by 172562 and 173326, effective May 5, 1999.)
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.
1. Federal Income and Withholding Tax
2. Social Security and Medicare
3. State Income and Withholding Tax
4. Savings Bonds-City Treasurer
5. Workers’ compensation Self-Insurance
6. Public Employees Retirement System
7. PACE Credit Union
8. MULTCO Employees Credit Union
9. IBEW Credit Union
10. Aetna Retirement Services-Deferred Compensation
11. PACE Credit Union-Deferred Compensation
12. ICMA-Deferred Compensation
13. ITT Hartford-Deferred Compensation
14. PEBSCO-Deferred Compensation
15. Portland Police Commanding Officers Association-PPCOA
16. Portland Metropolitan Employees Union, DCTU, Local 189
17. Painters and Allied Trade Union, Local 10
18. International Brotherhood of Electrical Workers, Local 48
19. Willamette Lodge, IAMAW, Local 63
20. Operating Engineers, Local 701
21. United Association of Plumbing & Pipe Fitting, Local 290
22. Auto Mechanics, Mt. Hood Lodge, Local 105
23. Municipal Employees Union, Local 483
24. Portland Police Association
25. Fire Fighter Association, Local 43
26. City of Portland Professional Employees Association, COPPEA
27. City Treasurer Trustee Fund for Benefit of Portland Police Contributions Committee-Police Special Contributions
28. Portland Police Beneficiary Association
29. Portland Police Historical Society
30. Portland Police Athletic Association
31. Fire & Police Insurance Association
32. Fire & Police Disability and Retirement Fund
33. Nationwide Auto Insurance
34. Family Cancer Plan Insurance Company
35. Kaiser Health Plan
36. Standard Insurance
37. Portland Building Fitness Center
38. Maintenance Bureau Fitness Center
39. Parking Patrol’s Fitness Center
40. Portland Police Fitness Room Trustee Fund
41. C-Tran Employee Transit Program
42. Portland Police Relocation Loan Program Repayment Fund.
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 25 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: 1,2,3,4,5,6,15,16,17,18,19,20,21,22,23,24,25,26,31,32,35 and 36.
5.08.150 State Tax Street Fund.
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.
5.08.160 Delivery of Checks payable to Deceased Persons.
(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:
AUTHORIZATION
FOR CHECK TRANSFER
KNOW ALL MEN BY THESE PRESENTS
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.
PLEASE DO NOT DETACH
. . . . . . . . . . . . . . . . . . . . . . .
Auditor of the City of Portland
By
Deputy
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.
5.08.170 Hold Harmless Agreements.
(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:
HOLD HARMLESS AGREEMENT
WHEREAS there was due and owing by the City of Portland, Oregon, to
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .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.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this
. . . . . . . day of . . . . . . . . . . . . . , 19 . . . .
. . . . . . . . . . . . . . . . .(SEAL)
. . . . . . . . . . . . . . . . . . . . . . .
Address
WITNESS:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address
Approved as to form:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
City Attorney
5.08.180 Effect of Death upon Assignments and Levies.
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.
Chapter 5.10
PAYROLL DEDUCTIONS FOR
CHARITABLE PURPOSES
(Added by Ord. No. 161964,
effective May 24, 1989.)
Sections:
5.10.010 Definitions.
5.10.020 Charitable Campaign Committee.
5.10.030 Council Approval Required.
5.10.040 Application for Permission to Engage in Fund-Raising Activities.
5.10.050 Eligibility Requirements.
5.10.060 Recommendation to Council.
5.10.070 Council Approval.
5.10.080 Effect of Council Approval.
5.10.090 Revocation of Approval.
5.10.100 Annual Charity Drive.
5.10.110 Annual Reporting.
5.10.120 Costs.
5.10.130 Distribution of Payroll Deductions.
5.10.010 Definitions.
(Amended by Ord. No. 168638, Apr. 5. 1995.)
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.
5.10.020 Charitable Campaign Committee.
(Amended by Ord. 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.
5.10.030 Council Approval Required.
In order to be eligible to participate in the Annual Charity Drive, an umbrella organization must apply for and receive approval from the Council.
5.10.040 Application for Permission to Engage in Fund-Raising Activities.
(Amended by Ord. 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.
Each application shall contain the following:
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.
5.10.050 Eligibility Requirements.
(Amended by Ord. 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.
5.10.060 Recommendation to Council.
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.
5.10.070 Council Approval.
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.
5.10.080 Effect of Council Approval.
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.
5.10.090 Revocation of Approval.
(Amended by Ord. No. 168638, Apr. 5, 1995.)
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.
5.10.100 Annual Charity Drive.
(Amended by Ord. No. 168638, Apr. 5, 1995.)
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.
5.10.110 Annual Reporting.
(Amended by Ord. No. 168638, Apr. 5, 1995.)
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.
5.10.120 Costs.
(Amended by Ord. No. 164381 and 168638, Apr. 5, 1995.)
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 25 cents transaction fee referred to in Section 5.08.140.
5.10.130 Distribution of Payroll Deductions.
(Amended by Ord. No. 168638, Apr. 5, 1995.)
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.
Chapter 5.12
ASSIGNMENT OR GARNISHMENT OF
SALARIES, WAGES OR CLAIMS
Sections:
5.12.010 Unlawful to Assign Salary or Wages.
5.12.020 Auditor Not to Recognize Assignment.
5.12.030 Exceptions.
5.12.040 Penalty.
5.12.050 Garnishments.
5.12.010 Unlawful to Assign Salary or Wages.
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.
5.12.020 Auditor Not to Recognize Assignment.
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.
5.12.030 Exceptions.
The provisions of this Chapter are subject to the following exceptions:
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.
5.12.040 Penalty.
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.
5.12.050 Garnishments.
(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;
2. Directing the payment of a certain sum upon such garnishment or levy;
3. Designating the person entitled to receive such sum; and
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.
Chapter 5.16
EMERGENCY CHECKS
Sections:
5.16.010 Issued When.
5.16.020 Extraordinary Circumstances Requiring Emergency Checks.
5.16.010 Issued When.
(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:
A. In payment of salaries or wages of employees when discharged or laid off;
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.
5.16.020 Extraordinary Circumstances Requiring Emergency Checks.
(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.
Chapter 5.20
BUDGET PROCEDURE
Sections:
5.20.010 Budget Procedure.
5.20.020 Reimbursable Expenditures Account.
5.20.010 Budget Procedure.
(Amended by 168428, Jan. 11, 1995.)
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.
5.20.020 Reimbursable Expenditures Account.
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.
Chapter 5.24
AUDITOR’S RECORDS AND REPORTS
Sections:
5.24.010 Permanent Records to be Kept by Auditor.
5.24.020 Auditor to Report on Balance in Appropriation.
5.24.010 Permanent Records to be Kept by Auditor.
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.
5.24.020 Auditor to Report on Balance in Appropriation.
Each month the Auditor shall transmit to the head of each department a statement showing the unencumbered balance in each appropriation.
Chapter 5.30
COLLECTIONS AND FORECLOSURE
PROCESS
(New Chapter substituted by
Ord. No. 165798, Sept. 2, 1992.)
Sections:
5.30.005 Purpose.
5.30.010 Definitions.
5.30.015 Applicability and Foreclosure Options.
5.30.020 Authorities and Responsibilities.
5.30.025 Collection Process.
5.30.035 Special Payment Plan.
5.30.037 Renegotiation of Installment Payment Contracts.
5.30.040 Preforeclosure Process and Review for Delinquent Tax Accounts.
5.30.045 Preparation of Preforeclosure List.
5.30.050 Preparation of Final Foreclosure List, Exemptions.
5.30.055 Review of Final Foreclosure List.
5.30.060 Council Action on Final Foreclosure List; Recording of Notice.
5.30.065 Notice to Persons on Final Foreclosure List of Foreclosure Action.
5.30.070 Purchase of Property by the City.
5.30.075 Payment of Lien and Presale and Sale Conditions.
5.30.080 The Sale.
5.30.085 Certificate of Sale and Notice of Sale to Property Owner.
5.30.090 Lien Docket Entry.
5.30.095 Redemption.
5.30.100 Issuance of Deed.
5.30.105 Waste, Improvements to the Property, Nuisance Abatement.
5.30.110 Payment of Taxes.
5.30.115 Sale of Property.
5.30.005 Purpose.
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 accounts. The emphasis of the collections program will be to maintain good communications with property owners. 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. The City intends, however, to provide for special payment plans for persons having difficulties paying assessments. Foreclosure is viewed as a last resort. It is the intent of the City to use foreclosure to protect the interests of the bond holders and taxpayers of the City, and to implement other City policies and programs.
5.30.010 Definitions.
A. As used in this Chapter, the following terms shall mean:
1. “Assessment Lien” means a lien placed upon certain real property for its proportionate share of costs incurred for: economic improvements, systems development charges, the construction of a public improvement, the making of sidewalk repairs, the mitigation of a nuisance, mitigation costs and penalties associated with a code violation or for other improvements or purposes authorized by state law.
2. “Bonded Lien” means an assessment which has been financed under the provisions of state law , City Code or City Charter and made a lien on the property.
3. “Collection costs” means the costs associated with the collection of the assessment such as billing and rebilling charges.
4. “Delinquent Bonded Lien” means a bonded assessment installment payment which has not been paid within 30 days after the installment payment due date.
5. “Delinquent Open Lien” means an unbonded lien which has not been paid within 30 days after entry upon the lien docket.
6. “Foreclosure Sale” means a legal process which allows the City to foreclose and to sell property to liquidate delinquent liens through notice and sale.
7. “Foreclosure Sale List” means a list of properties with delinquent City liens which the City will sell at a foreclosure sale.
8. “Open Lien” means an assessment which the property owner has elected not to bond.
9. “Redemption period” means the one-year period during which a person having an interest in the property may redeem the property which has been sold at a foreclosure sale to satisfy a delinquent assessment.
10. “Redemption price” means the sales price plus interest and penalties.
11. “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.
12. “Sale price” means the amount owing on the principle, interest, penalties, collection costs and sales costs.
5.30.015 Applicability and Foreclosure Options.
A. The provisions of this Chapter apply to delinquent bonded liens and delinquent open liens. This Chapter shall not apply to delinquent assessment liens under the sewer safety net program. The foreclosure procedures applicable to Sewer Safety Net liens are set forth in Chapter 5.31.
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.
5.30.020 Authorities and Responsibilities.
A. The Auditor shall maintain the records related to assessment liens, process bonding contracts, bill and collect open and bonded lien accounts, process and approve or deny applications for special payment, administer the preforeclosure collection process, prepare a preforeclosure list, and transmit the preforeclosure and final foreclosure lists to the Council members for review and approval.
B. The Council shall review and approve the preforeclosure and final foreclosure lists and adopt an ordinance which lists the properties subject to foreclosure.
C. The Treasurer shall administer the foreclosure sale process, purchase property identified by the Council for purchase by the City, administer the redemption process and execute deeds conveying the property sold.
D. The Bureau of General Services shall manage, maintain, rent or market for sale properties purchased by the Treasurer for collection of delinquent assessments.
5.30.025 Collection Process.
(Amended by Ord No. 167655, May 11, 1994.)
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 them available to the public.
2. Establish fees including a billing fee 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.
B. The collections process shall provide for individual payment plans under certain circumstances as provided by City Code 5.30.035, Special Payment Plan.
C. The collections process may begin at any time after the account is 30 days past due.
D. A penalty equal to one-half of one percent (.005) of the principal balance shall be added to the amount due on an open or bonded lien at the date the assessment or installment payment becomes delinquent. The penalty accumulates with each installment payment until the lien is brought current or paid in full.
E. Interest shall be added to delinquent liens based on the following methods:
1. For a delinquent open lien interest shall be calculated on the unpaid balance from the assessment date. Interest shall be charged at a rate to be set annually by the Treasurer based on the average prime interest rate set by the City’s bank on December 31st of the previous year, plus 300 basis points (3%.) At no time shall the annual interest rate be reduced to less than 12%.
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.
F. Assessment payments made during the thirty (30) day period following the assessment date shall not be charged the interest specified in City Code Section 5.30.025 E 1.
G. The Auditor may waive delinquent interest, penalties and collection costs under the following conditions:
1. A delay in receiving payment, installment contract or special payment contract from the property owner which is caused by a documented oversight, omission or error by City staff; or
2. A delay in receiving payment, installment contract or special payment contract from the property owner which is caused by a documented medical or financial emergency; or
3. The sale or transfer of the property to a certified non-profit organization or government program to satisfy the goals of an expressed public purpose; and
4. The property owner complies procedures for documenting the waiver request as set forth by the City Auditor.
H. Subject to the terms of the installment contract, when a bonded lien becomes delinquent, the Auditor may declare the installment contract void. The property owner shall pay all delinquent installments and make new installment payment arrangements as provided in this Chapter or may pay the entire amount owing on the delinquent bonded lien.
I. When property has been placed on the foreclosure list, persons having an interest in the property may bring the delinquent bonded lien account current until the time of the sale. After the sale, any person redeeming the property must pay the delinquent bonded lien account in full.
5.30.035 Special Payment Plan.
A. The Special Payment Plan shall be available to any property owner who has a delinquent open or bonded lien, and is unable to bring their delinquent lien account current within one year. In order to qualify, the property owner must demonstrate to the Auditor an inability to pay the assessment lien in cash or an inability to maintain current bonded lien payments.
B. The plan shall take into account the ability of the property owner to pay and it may extend over any payment period based on the applicant’s ability to pay. The plan shall be reviewed every three years and shall be revised to minimize the term based on the applicant’s ability to pay. A minimum monthly payment equal to the monthly interest accruing to the delinquent lien, plus a billing charge shall be required. The payment shall be applied to the delinquent lien account. At the conclusion of the plan, the property owner will be billed according to standard City billing procedures.
C. The property may be placed on the preforeclosure list in accordance with the priorities in City Code 5.30.045 if the property owner fails to make a monthly payment before the completion of the plan unless the Auditor finds there is an extreme emergency and a severe temporary financial difficulty. In this event the Auditor and property owner may develop a new plan.
5.30.037 Renegotiation of Installment payment Contacts.
(Added by Ord. No. 167655, May 11, 1994.) When the Auditor declares an installment payment contract void, the property owner may renegotiate new installment payment arrangements. The Auditor shall offer new installment contract terms and conditions which protect the City’s financial condition and assume the repayment of associated municipal bonds. 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 contact. The renegotiated installment contact shall be in the same form as required by Chapter 17.12 of the Code for assessment installment payment contacts. The property owner shall pay or make arrangements or pay all delinquent assessment installments before the City will accept the renegotiated installment payment contact as follows:
A. In the event that the City declares the installment payment contact void prior to placing the property on the foreclosure list, the property owner may apply for a special payment plan to pay delinquent assessment installments as provide in PCC 5.30.035.
B. In the event that the City declares the installment payment contact void after placing the property on the foreclosure list, the property owner or other interested person may pay all delinquent installments in full.
5.30.040 Preforeclosure Process and Review for Delinquent Tax Accounts.
A. At the conclusion of the collections process, the Auditor shall prepare a list of delinquent lien accounts. No property shall be placed on the list unless:
1. It is an open lien which is at least 60 days past the due date; or
2. It is a bonded lien which is at least one year past the installment due date.
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 Council 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 Council shall direct the Treasurer by Resolution regarding which properties should be purchased.
D. The Treasurer shall remove property 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 by the Council.
5.30.045 Preparation of Pre-foreclosure List.
A. The number of properties to be placed on the preforeclosure list shall be determined by the Auditor and Treasurer based on how many properties the current staff level can process.
B. The Auditor shall prioritize the delinquent lien accounts for inclusion on the preforeclosure list as follows:
1. The highest priority shall be given to properties which have the potential to significantly reduce the delinquency rate.
2. The next priority shall be given to properties which have the potential of helping to solve a City public health, safety or welfare objective.
C. In order to identify the highest priority properties, the following process shall be applied:
1. The Auditor shall circulate a list of all delinquent lien accounts to the City Council. The list shall identify the location of the properties, the type of improvement on the properties, the type of delinquent lien and the amount owing;
2. The Council members may request appropriate bureaus to review the list and to identify properties which should be foreclosed upon to implement City policies and programs. Within 30 days of the date the Auditor circulates the property list, the Council member shall transmit to the Auditor a list of any properties which are to be placed on the preforeclosure list together with a statement identifying the policy or program to be implemented and the reasons the placement of the particular property on the list will implement the policy or program. The source of the funds to acquire the property shall also be identified.
3. The Auditor shall place each property identified by a Council member on the preforeclosure list. These properties shall be subject to the preforeclosure process unless removed under City Code 5.30.035, Special Payment Plan or the account is brought current.
5.30.050 Preparation of the Final Foreclosure List, Exemptions.
A. 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 owner has 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 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 property owner elects to pay under a Special Payment Plan, City Code 5.30.035 or brings the account current. The record shall contain a copy of the notice and the returned receipts.
5.30.055 Review of Final Foreclosure List.
A. The Auditor shall transmit a preforeclosure report and a copy of the final foreclosure list to each City Council member for review. Any comments or additions and any required reports shall be transmitted to the Auditor within 15 working days from the date the Auditor sends the final foreclosure list to the Council members.
B. The preforeclosure report shall contain the following:
1. Certification that each property on the list meets the foreclosure criteria set forth in City Code 5.30.040 and City Code 5.30.045 B.;
2. Certification that each step in the preparation of the final foreclosure list, as set forth in City Code 5.30.050 has been applied correctly; and
3. Recommendation of properties to be purchased by the City to implement City policies and programs. Any properties recommended for purchase shall be accompanied by a statement as required by City Code 5.30.045 C.2.
C. Each City Council member may transmit a copy of the list to appropriate bureaus to determine if any additional property should be purchased by the City to implement a City policy or program. Any Council member may transmit a report to the Auditor regarding any factors listed for consideration in City Code 5.30.055 B..
D. The Auditor shall:
1. Prepare a report to Council which identifies properties which have been deleted from the list based on the recommendations of the Commissioners and which identifies properties which the Auditor has not deleted, but the Commissioners have recommended for deletion. The report shall state the reasons the properties have not been deleted from the list. In addition, the Auditor shall identify any properties recommended for deletion by a Commissioner and the reasons the properties have or have not been deleted;
2. Prepare a report and a list for submission to the Council which identifies the properties recommended for purchase by the City. The list shall include the following information: a legal description of the property, the address of the property, the type of improvements on the property, the bureau requesting the purchase. The report shall identify the property, the source of the funds to be used to purchase the property, the policy or program being implemented by the purchase and a statement of how the purchase will be part of the program implementation; and
3. Prepare a revised final foreclosure list for submission to the Council for Council action.
5.30.060 Council Action on Final Foreclosure List; Recording of Notice.
A. The Council shall review the final foreclosure list and reports submitted by the Auditor to determine:
1. Whether each property on the list satisfies the foreclosure criteria set forth in City Code 5.30.040 and City Code 5.30.045 B.;
2. Whether each step in the collection process as set forth in City Code 5.30.050 has been applied correctly; and
3. Whether certain properties should be purchased by the City.
B. 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 which properties on the list should be purchased by the City.
C. The final foreclosure list shall be transmitted to the Treasurer by the Council Clerk. After the list is submitted to the Treasurer, the only payment option is to bring the account current.
D. 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.
E. 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.
F. 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.
5.30.065 Notice to Persons on Final Foreclosure List of Foreclosure Action.
A. Individual Notice.
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 for sales costs to date.
3. The Treasurer shall retain and file the returned mailing receipt.
B. Newspaper Notice.
1. The Treasurer shall have printed in a daily newspaper of general circulation the notice of sale once a week for four successive weeks.
2. The notice shall contain the information required in City Code
5.30.065 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 certified mail, return receipt requested and a copy of the notice shall be retained in the file.
C. Posted Notice.
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.
2. The notice shall contain the information required in City Code 5.30.065 A 2.
3. The Treasurer shall prepare an affidavit of posting and a copy of the affidavit shall be retained in the file.
D. Other notice.
1. Notice shall be given to the Internal Revenue Service by certified mail, return receipt requested, at least 25 days prior to the sale.
5.30.070 Purchase of Property by the City.
A. The City may purchase property on the final foreclosure list before, during or after the sale subject to the following conditions:
1. The Council has approved the purchase of the property in the ordinance adopted under City Code 5.30.060 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 collection and sales costs, and thereby remove the property from the list as provided by City Code 5.30.075 A; and
3. Any person having an interest in the property may redeem the property as provided by City Code 5.30.095.
5.30.075 Payment of Lien and Presale and Sale Conditions.
(Amended by Ord. No. 167655, May 11, 1994.)
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 a delinquent bonded assessment, the Auditor shall declare the installment contract void and require the proper owner the make new installment payment arrangements as provided in this Chapter. Payment plans as provided in 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.
5.30.080 The Sale.
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, collection costs and sales costs .
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.
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 5.30.060 D through City Code 5.30.115 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.
5.30.085 Certificate of Sale and Notice of Sale to Property Owner.
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 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 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 as provided by City Code 5.30.060 D in which case notice shall be optional. 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.
5.30.090 Lien Docket Entry.
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.
5.30.095 Redemption.
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. unless it falls on a Saturday, Sunday or legal holiday in which event the period runs 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 or a payment plan. 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.
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 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 on the lien docket in the amount of the sales price plus interest.
F. The amount of the penalty shall be deposited in the assessment collection fund.
5.30.100 Issuance of Deed.
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.
5.30.105 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.
D. The property may also become subject to special assessments.
5.30.110 Payment of Taxes.
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.
5.30.115 Sale of Property.
A. Any property purchased 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 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 collection fund 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.
Chapter 5.31
COLLECTIONS & FORECLOSURE
PROCESS FOR DELINQUENT SEWER
SAFETY NET LIENS
(New Chapter substituted by
Ord. No. 165798, Sept. 2, 1992.)
Sections:
5.31.005 Purpose.
5.31.010 Definitions.
5.31.015 Applicability and Foreclosure Options.
5.31.020 Authorities and Responsibilities.
5.31.025 Collection Process.
5.31.027 Renegotiation of Installment Payment Contracts.
5.31.030 Preforeclosure Process and Review for Delinquent Tax Accounts.
5.31.035 Preparation of Preforeclosure List.
5.31.045 Review of Final Foreclosure List.
5.31.050 Council Action on Final Foreclosure List; Recording of Notice.
5.31.055 Notice to Persons on Final Foreclosure List of Foreclosure Action.
5.31.060 Purchase of Property by the City.
5.31.065 Payment of Lien and Presale and Sale Conditions.
5.31.070 The Sale.
5.31.075 Certificate of Sale and Notice to Property Owner.
5.31.080 Lien Docket Entry.
5.31.085 Redemption.
5.31.090 Issuance of Deed.
5.31.095 Waste, Improvements to the Property, Nuisance Abatement.
5.31.100 Payment of Taxes.
5.31.105 Sale of Property.
5.31.005 Purpose.
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.
5.31.010 Definitions.
A. As used in this Chapter only, the following terms shall mean:
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.
5.31.015 Applicability and Foreclosure Options.
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.
5.31.020 Authorities and Responsibilities.
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.
5.31.025 Collection Process.
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.
5.31.027 Renegotiation of Installment Payment Contracts.
(Added by Ord. 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.
5.31.030 Preforeclosure Process and Review for Delinquent Tax Accounts.
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.
5.31.035 Preparation of List.
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.
5.31.045 Review of Final Foreclosure List.
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.
B. The Council shall:
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.
C. The Auditor shall:
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.
5.31.050 Council Action on Final Foreclosure List; Recording of Notice.
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.
5.31.055 Notice to Persons on Final Foreclosure List of Foreclosure Action.
A. Individual notice.
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.
3. The Treasurer shall retain and file the returned mailing receipt.
B. Newspaper notice.
1. The Treasurer shall have printed in a daily newspaper of general circulation the notice of sale once a week for four successive weeks.
2. The notice shall contain the information required in City Code 5.31.055 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 certified mail, return receipt requested and a copy of the notice shall be retained in the file.
C. Posted notice.
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.
2. The notice shall contain the information required in City Code 5.31.055 A 2.
3. The Treasurer shall prepare an affidavit of posting and a copy of the affidavit shall be retained in the file.
D. Other notice.
1. Notice shall be given to the Internal Revenue Service by certified mail, return receipt requested, at least 25 days prior to the sale.
5.31.060 Purchase of Property by the City.
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.
5.31.065 Payment of Lien and Presale and Sale Conditions.
(Amended by Ord. No. 167655, May 11, 1994.)
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.
5.31.070 The Sale.
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.
5.31.075 Certificate of Sale and Notice of Sale to Property Owner.
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.
5.31.080 Lien Docket Entry.
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.
5.31.085 Redemption.
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.
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 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.
5.31.090 Issuance of Deed.
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.
D. The property may also become subject to special assessments.
5.31.100 Payment of Taxes.
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.
5.31.105 Sale of Property.
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.
Chapter 5.32
PURCHASING AGENT
AND PROCEDURES
(Repealed by Ordinance Nos. 174509
and 174904, effective January 1, 2001.)
Chapter 5.33
CITY OF PORTLAND’S PURCHASING
AUTHORITY, POLICIES AND RULES
(Added by Ordinance Nos. 174509
and 174904, effective January 1, 2001.)
Sections:
5.33.010 Definitions.
5.33.020 City Council as Local Contract Review Board.
5.33.030 Authority of Purchasing Agent.
5.33.040 Authority of Appropriation Unit Managers to Issue Limited Purchase Orders.
5.33.050 Purchasing Polices.
5.33.060 Procedures to Implement Purchasing Policies.
5.33.070 Exceptions and Exclusions to Competitive Solicitation .
5.33.080 Procedures to Implement Exceptions and Exclusions .
5.33.090 Exemptions.
5.33.100 Scope of Rules.
5.33.110 Solicitation.
5.33.120 Bids or Proposals Are Offers.
5.33.130 Electronic Bids and Proposals.
5.33.140 Public Notice of Solicitation.
5.33.150 Bidder, Proposer or Product Prequalification for Contracts Other
than Public Improvements.
5.33.160 Bid or Proposal Preparation Instructions.
5.33.170 Bidder or Proposer Submissions.
5.33.180 Bid or Proposal Security.
5.33.190 Pre-Bid and Pre-Proposal Conferences.
5.33.200 Request for Change or Protest of Solicitation Specifications
or Contract Provisions; Clarifications.
5.33.210 Addenda to Solicitation Documents.
5.33.220 Modification or Withdrawal of Bids or Proposals.
5.33.230 Receipt, Opening, Recording and Availability of Bids and Proposals.
5.33.240 Late Bids and Proposals.
5.33.250 Mistakes in Bids or Proposals.
5.33.260 Time for Acceptance.
5.33.270 Extension of Time for Acceptance of Bid or Proposal.
5.33.280 Bid or Proposal Evaluation and Award.
5.33.290 Tied Bids or Proposals.
5.33.300 Rejection of Individual Bids or Proposals.
5.33.310 Rejection of All Bids or Proposals.
5.33.320 Protest of Contractor Selection, Contract Award.
5.33.330 Disqualification.
5.33.340 Negotiation With Bidders or Proposers.
5.33.350 Appeals.
5.33.360 Cancellation of Solicitation.
5.33.370 Disposition of Bids or Proposals if Solicitation Canceled.
5.33.380 Documentation of Award.
5.33.390 Availability of Award Decisions.
5.33.400 Performance Security.
5.33.410 Records Maintenance; Right to Audit Records.
5.33.420 Right to Inspect Plant or Place of Business.
5.33.430 Contract Cancellation, Contractor Termination Procedures.
5.33.440 Foreign Contractor.
5.33.450 Additional Rules Applicable to Public Improvement Contracts.
5.33.460 Competitive Bidding and Security for Public Improvement Contracts.
5.33.470 Prequalification of Bidder or Proposer.
5.33.480 Public Notice.
5.33.490 Bid or Proposal Evaluation and Award.
5.33.500 Retainage.
5.33.510 Progress Payments.
5.33.520 Final Inspection.
5.33.530 Final Estimate and Final Payment.
5.33.540 Claims for Unpaid Labor or Supplies.
5.33.550 Fair Contracting and Employment Programs.
5.33.560 Alternative Contracting Methods for Public Improvement Contracts.
5.33.010 Definitions.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. The following definitions apply to the City of Portland’s Purchasing Authority, Policies and Rules as contained in this Chapter.
1. Addenda: Additions or deletions to, material changes in, or general interest explanations of the City's solicitation documents.
2. Alternative Contracting Methods: Methods of public improvement contracting, commonly including variations of Design/Build and CM/GC forms of contracting, which are specifically addressed in this Chapter, as well as other developing techniques such as performance contracting and cost plus time contracting which are addressed as a group in this Chapter as forms of competitive negotiation.
3. Authorized Representative: The owner of a sole proprietorship, a partner in a firm or partnership, or, a person authorized to bind by a corporation’s board of directors.
4. Award: The decision of the City to enter into a contract with a particular bidder or proposer.
5. Bid: A competitive offer binding on the bidder and submitted in response to an invitation to bid.
6. Bid or Proposal Bond/Bid or Proposal Security: A means of securing execution of an awarded contract as further provided in PCC 5.33.180 and 5.33.460.
7. Bidder: A person who submits a bid in response to the City's invitation to bid.
8. Bidding Period: The span of time between the date of issuance of the solicitation document and closing of the solicitation.
9. City: The City of Portland, Oregon or designee.
10. Closing: The date and time announced in the City's solicitation document as the deadline for submitting bids or proposals.
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 negotiate with if the City intends to negotiate with proposers in accordance with PCC 5.33.340.
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.
15. Contract: The written agreement resulting from the solicitation document that sets forth the rights and obligations of the parties.
16. Contract Amount: The total of the awarded bid or proposal amount, including any approved alternates, and any fully executed change orders or amendments.
17. Contract Execution: Contract execution occurs when the contract is signed by any mark, work, or symbol, in ink, with the intent to be bound, by an authorized representative of a bidder or proposer and the City.
18. Contractor: The person awarded the contract to furnish the goods, services or work required by the City's solicitation document.
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, week-ends 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 submitted by bidders or proposers in response to the City's solicitation document.
22. Design/Build: An alternative contracting method that results in a public improvement contract in which the construction contractor also provides or obtains specified design services, and manages both design and construction. In this form of contract, a single entity provides the City with all of the services necessary to both design and construct the project.
23. Disqualification: Preclusion from bidding and contracting with the City for a period of time.
24. 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.
25. Exempt: Contracts not subject to the competitive bidding requirements of state or local law.
26. Exemption: A formal process under ORS 279.015 or ORS 279.017, and PCC 5.33.090 which permits the City to purchase goods or services without the use of competitive bidding. An exemption may be for a specific contract or solicitation, or it may be for a class or category of contracts.
27. Foreign Contractor: A contractor not domiciled in or registered to do business in the State of Oregon.
28. Formal Bid Threshold: The amount as provided by City Charter Section 8-104.
29. Guaranteed Maximum Price (GMP): The total maximum price provided to the City by the contractor, and accepted by the City, that includes all reimbursable costs of and fees for completion of the contract work, as defined by the solicitation document and the contract documents, except for material changes in the scope of work. It may also include particularly identified contingency amounts.
30. Informal Price Quotations: The competitive solicitation by the City of informal offers from competing bidders.
31. Invitation to bid (ITB): A solicitation document calling for bids.
32. 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.
33. Local Contract Review Board: The Portland City Council as authorized by ORS 279.055 and PCC 5.33.020.
34. Non-Competitive Negotiation: A method of contracting in which contract award results from contract discussions with only one individual or firm.
35. Offer: A bid or proposal.
36. Opening: The date, time and place announced in the City's solicitation document for the public opening of written, sealed bids or proposals.
37. ORS: Oregon Revised Statutes as applicable and as amended.
38. Other Options: Those items generally considered appropriate for negotiation in the competitive proposal process, relating to the details of contract performance, but excluding any material requirements previously announced in the solicitation process which would likely affect the competition.
39. PCC: The Code of the City of Portland, Oregon.
40. Person: A natural person capable of being legally bound, sole proprietorship, limited liability company, corporation, foreign corporation, non-profit corporation, profit and non-profit unincorporated association, business trust, partnership, two or more persons having a joint or common economic interest, a government or government subdivision or other entity whether bidder or proposer or prospective bidder or proposer, contractor, vendor, or sub-contractor.
41. Prequalification: A process followed by the City to determine the qualifications of products or prospective bidders or proposers to perform contracts.
42. Product Sample: A representative specimen of the item offered by the bidder or proposer in response to the City's 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 in the bid or proposal.
43. Project: A general term encompassing all phases of the work to be performed under the contract.
44. Proposal: A competitive offer binding on the proposer and submitted in response to a request for proposals.
45. Proposer: A person who submits a proposal in response to the City’s request for proposals.
46. Public Contract: The term public contract as used herein shall have the same meaning as provided in ORS 279.011(6).
47. Public Improvement: The term public improvement as used herein shall have the same meaning as provided in ORS 279.011(8).
48. Public Works: The term public works as used herein shall have the same meaning as provided in ORS 279.348(3).
49. Purchasing Agent: That person designated by the Portland City Council to act as the City’s Purchasing Agent or the Purchasing Agent’s designee.
50. 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;
c. Meets the definition given in ORS 279.835(4); and
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.
51. Request for proposals (RFP): A solicitation document calling for proposals.
52. Responsible Bidder or Proposer: A person that has submitted a bid or proposal and that meets the standards set forth in PCC 5.33.300 B.4 and has not been disqualified under ORS 200.075, 279.037 or PCC 5.33.330.
53. Responsive Bid or Proposal: A bid or proposal that substantially complies with applicable solicitation procedures and requirements and the solicitation document.
54. Retainage: The difference between the amount earned by the contractor and the amount paid on the contract by the City.
55. Service Contract: A contract for labor, labor and materials, or trade related services that is neither a professional, technical and expert services contract nor a public improvement contract.
56. Solicitation Document: Any document that requests submission of a bid or proposal or other offer to the City to enter into a contract. All documents referenced by the solicitation document are included in the solicitation document.
57. Specification: A portion of a contract that specifies how the work is to be performed or that sets conditions for performance of the work. The specifications may be expressly stated in the contract documents, or may be incorporated by reference to some other source. Examples of specifications include, but are not limited to: a description of the physical or functional characteristics of an item of work; the nature of a supply, service or construction item; a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery; or the quantities or qualities of materials to be furnished under the contract. Specifications may either state the result to be obtained or describe the method and manner of performing the work.
58. Value Engineering: Those 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.
59. Work: The furnishing of all materials, equipment, labor, and incidentals necessary to successfully complete any individual item or the entire contract and the timely successful completion of all duties and obligations imposed by the contract.
5.33.020 City Council as Local Contract Review Board
A. Pursuant to ORS 279.055, the City Council is designated and created as the Local Contract Review Board for the City with respect to all contracts of the City. The City Council shall exercise all the powers and duties conferred upon it by state law, except as those powers and duties may be limited by the City Charter. In order to carry out its powers and duties, the City of Portland’s Purchasing Authority, Policies and Rules, PCC Chapter 5.33, are hereby adopted by City Council.
B. The procedural rules of the City Council sitting as the Local Contract Review Board shall be the same as those regulating City Council as provided by PCC Chapter 3.02.
5.33.030 Authority of Purchasing Agent.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. The Purchasing Agent is authorized to:
1. Advertise for bids or proposals without specific authorization from City Council, when the proposed purchase is included within the current fiscal year budget.
2. For contracts not exceeding $500,000, award and execute contracts for the purchase or lease of supplies, materials, equipment, labor, contractual services, including construction, personal services not covered by PCC Chapter 5.68, and revenue producing services, without specific authorization by ordinance of City Council.
3. For contracts in excess of $500,000, recommend the award of a contract by a report to City Council. City Council shall approve the award and contract execution by ordinance.
4. Award and execute contracts for professional, technical or expert services for amounts not exceeding $500,000 when authorized by the Mayor, a Commissioner, the Auditor or their designated Bureau managers. If the Purchasing Agent is so authorized, all professional, technical and expert services shall be procured in accordance with PCC Chapter 5.68.
5. Except for emergency contracts, authorize final payment if the amount of the contract is within 125% of the award amount. If the amount of the contract exceeds 125% of the award amount, final payment shall be authorized by City Council. Prior to authorization of final payment, the Purchasing Agent shall confirm the total amount due and that all work is completed and accepted by the City.
6. Adopt forms, procedures, and administrative rules for all City purchases regardless of amount. The forms, procedures and administrative rules shall be used by the City unless they conflict with the City Code.
7. Establish a procedure providing appropriate financial control over the authorization provided by PCC 5.33.040. Revoke the authority of appropriation unit managers to issue limited purchase orders obligating the City for purchase of materials or services not to exceed $5,000, in case of abuse.
8. Perform such other duties as provided by the Portland City Code, City Council or the Commissioner-in-Charge. Perform all activities required of the City in PCC Chapter 5.33 unless specifically provided otherwise.
9. The Purchasing Agent may delegate the Purchasing Agent’s authority under this Chapter in accordance with City practices.
B. The Purchasing Agent 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.
C. The Purchasing Agent is not authorized to execute Intergovernmental Agreements without specific authorization by City Council.
5.33.040 Authority of Appropriation Unit Managers to Issue Limited Purchase Orders.
Appropriation unit managers are authorized to issue limited purchase orders not to exceed $5,000, obligating the City for the purchase of materials or services for use by those managers.
5.33.050 Purchasing Polices.
A. Purchasing from City Employees. General Policy: The City shall not purchase any goods or services from City employees except as provided by PCC 5.33.060 A.
B. Purchasing Goods and Services from Qualified Rehabilitation Facilities. General Policy: As provided by ORS 279.835 through 279.855, it is the policy of the City to assist QRFs by administering a program to identify contractual opportunities in the public sector, and to assist and encourage its Bureaus to enter into contractual relationships with QRFs for the provision of products and services. This policy applies to all Bureaus under the jurisdiction of the City. During both initial price determinations and subsequent price reviews, the City and the QRF shall keep in mind the purpose of the law: 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 products and services produced by disabled individuals.
C. Purchasing Recycled Materials and Products. General Policy: The City promotes the purchase of products made from recycled materials and the recycling of waste materials, in accordance with ORS 279.545 to 279.550. The City shall give preference to the purchase of materials and supplies manufactured from recycled materials as provided by ORS 279.570(1). The City shall establish purchasing practices that assure, to the maximum extent economically feasible, purchase of materials, goods and supplies that may be recycled or reused when discarded as provided by ORS 279.570(8).
D. Purchasing of Recycled Oil Products. General Policy: As provided by ORS 279.580 to 279.595, the City shall not exclude recycled oils or require that oils be manufactured from virgin oils, in its procedures and specifications for the purchase of lubricating and industrial oils.
E. Purchasing of Retreaded Tires. General Policy: As provided by ORS 279.605 to 279.617, all tires for use on the non-steering wheels of City vehicles shall, at next required installation of tires, be equipped with retreaded tires.
5.33.060 Procedures to Implement Purchasing Polices.
A. Purchasing From City Employees. The Purchasing Agent shall not make any purchase of goods or services from any City employee, or any business with which a City employee is associated, except: when expressly authorized by ordinance, or during a state of emergency as provided by PCC Chapters 15.04 and 15.08; and when approved in writing by the Mayor or the person performing the Mayor's duties under those Chapters. 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.
B. Purchasing Goods and Services from Qualified Rehabilitation Facilities.
1. Definitions.
a. Agency means a public agency, as defined in ORS 279.011(7) procuring a contract under the Products of Disabled Individuals Law, ORS 279.835 through 279.855.
b. Price means the fair market price as determined in accordance with PCC 5.33.060 B.2. and 3.
c. Disabled Individual means an individual who, because of the nature of his/her disabilities, is not able to participate fully in competitive employment, and for whom specialized employment opportunities must be provided.
d. Qualified nonprofit agency for disabled individuals means a nonprofit activity center or rehabilitation facility certified by the Oregon Department of Administrative Services in cooperation with the Oregon Department of Human Resources as defined in ORS 279.835(4).
2. Initial Price Determination Procedures:
a. For products or services which the City determines may be suitable for purchase by Bureaus, the City shall provide the QRF with a solicitation document and information as appropriate for the QRF to respond.
b. The QRF shall submit its proposed price to the City, in accordance with the solicitation. The QRF may be required to make full disclosure of known costs and projections of anticipated future product or service costs. The disclosure may include, but need not be limited to, the cost of the following items: labor, fringe benefits, materials and/or supplies, equipment, maintenance, overhead, delivery, administration and other factors used in the QRF’s price determination. The City may require the QRF to describe and quantify to the extent possible, the economic and social benefit of performing the contract under ORS 279.835 through 279.855. When quantifying economic and social benefits, the QRF shall consider, but need not be limited to, the following: the number of workers employed under the contract; and, the volume and scope of the work required.
c. Unless otherwise requested by the City, prices for products and services shall include all costs associated with the delivery of the product or service.
d. At the City’s request, an ad hoc cost and benefits task force may be convened to review QRF costing and economic and social benefit calculations, and to recommend a price for the product or service provided. Each task force shall include at least one representative from each of the following: private sector, public agency, the City, the QRF, and the Advisory Council for Purchases from Qualified Rehabilitation Facilities (a standing committee of public sector and QRF representation, under the auspices of the Oregon Department of Administrative Services and the Oregon Rehabilitation Association,)
e. If a recommended price or specification change cannot be negotiated which would ensure the recovery of the QRF’s costs, the QRF may elect to discontinue consideration of the contract or accept the final price set by the City.
f. Prior to contract implementation, the City shall transmit the notice of the approved price to the Bureau and the QRF in the form of a purchase order or other contract document.
3. Expiration or Revision of Prices:
a. The following procedure shall be used in developing price revisions or subsequent prices upon contract expiration. Should the price for a product or service need adjusting, the adjustment shall be based upon changes in the scope of work, the prevailing wage rate, significant changes in market pricing and/or QRF cost factors. The QRF shall submit to the City a request for a price change showing a breakdown of cost changes with appropriate documentation.
b. The price established by the City for a product or service shall remain in effect until the City approves a new price. At the discretion of the City, the QRF shall submit updated social benefit documentation. At the City’s request, an ad hoc cost benefits task force may be convened to review QRF costing and economic and social benefit calculations, and to recommend a price for the product or service provided by this policy.
c. In the event that the City wishes to change specifications from the most recent solicitation for the product or service, the City shall notify the QRF in writing of specific changes in the scope of work or other conditions which will be required during the new contract period.
d. Upon receipt of notice of change, the QRF shall submit a price recommendation and price change request within a reasonable time to the City for review and approval.
4. The City will provide relevant information, guidance and assistance necessary to its Bureaus to ensure the fullest extent possible maximum utilization of QRF products and services.
C. Purchasing Recycled Materials and Products.
1. Definitions:
a. Post-consumer waste means a finished material which 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.
b. 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.
c. Recycled paper means a paper product with not less than:
(1) Fifty percent of its total weight consisting of secondary waste materials; or
(2) Twenty-five percent of its total weight consisting of post- consumer waste.
d. 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 waste consisting of post-consumer waste. Recycled product also 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.
e. Secondary waste materials means fragments of products or finished products of a manufacturing process which has converted a virgin resource into a commodity of real economic value, and includes post-consumer waste, but 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 or paper machine rolls, mill broke, wood slabs, chips, sawdust or other wood residue from a manufacturing process.
2. Recycled Materials and Products Preference: Five Percent Preference. The City shall give preference to the purchase of materials and supplies manufactured from recycled materials if:
a. The recycled product is available;
b. The recycled product meets applicable standards;
c. The recycled product can be substituted for a comparable non- recycled product; and
d. Recycled product costs do not exceed the costs of non-recycled products by more than five percent.
3. Cost Differential Exceeding Five Percent: The City may give preference to the purchase of materials and supplies manufactured from recycled materials, even if the cost differential exceeds the five percent preference.
4. Preference for Recycled Products/Waste Reduction: The City may give preference to the suppliers of recycled products and recycled paper or to the products that reduce the amount of waste generation. The City may determine the amount of this preference.
5. Performance Standards: The City shall delete all contract provisions impeding the consideration of recycled products in favor of performance standards.
6. Bidders to Certify Recycled Content of Products: When required by the solicitation documents, bidders and proposers shall certify in their submitted bids and proposals:
a. The minimum, if not exact, percentage of recycled paper in paper products and the fiber type; or
b. The minimum, if not exact, percentage of recycled product in all other materials and supplies offered; and
c. Both the post-consumer and secondary waste content thereof, regardless whether the products meet the percentage of recycled material specified for recycled products in ORS 279.545; or
d. Bidders and proposers may certify a zero percent recycled product content.
7. Certification Requirement Applies to Most Purchases: The certification requirement applies to public improvement projects and all other purchases, except those which are subject to the preference provisions of ORS 279.580 to 279.595 (recycling oil), 279.605 to 279.617 (retreaded tries), and 279.650 (office and facsimile paper).
8. Preference Eligibility: To be eligible for a preference under ORS 279.570:
a. The bidder shall indicate which materials and supplies contain verifiable recycled content; and
b. Such products shall meet the requirements of PCC 5.33.060.C.2.
9. Preference Applied: A preference under ORS 279.570 shall only be applied to that portion of a bid or proposal which offers products containing verifiable recycled content.
10. Bid Rejection: Bids that contain false information about the percentage of recycled product, post-consumer and secondary waste content, or verifiable recycled content shall be rejected as non-responsive, in accordance with PCC 5.33.300 B.6.
11. Contractor Investigation: Contracts awarded as a result of a preference under ORS 279.570 are subject to such investigation, including but not limited to audits, plant visitations, examination of invoices and other
documents, as the City deems necessary to confirm that the products supplied contain the percentages of recycled product, post-consumer and secondary waste as stated in the contractor’s original bid or proposal.
12. Contractor Penalties: If the contractor fails to provide products containing the percentages of recycled product, post-consumer and secondary waste stated in the contractor’s bid or proposal, the City may require:
a. The contractor to reimburse the City for the portion of the contract price which is attributable to the preference applied under ORS 279.570; or
b. Contract termination; or
c. Both PCC 5.33.060 C.12.a. and b., or such other remedies the City deems appropriate.
D. Purchasing of Recycled Oil Products.
1. Definitions:
a. Industrial oil means any compressor, turbine or bearing oil, hydraulic oil, metal-working oil or refrigeration oil.
b. 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.
c. 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.
d. Used oil has the meaning given that term in ORS 459A.555(5).
e. Virgin oil means oil that has been refined from crude oil and that has not been used or contaminated with impurities.
2. 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 greater than five percent of the cost of comparable virgin oil products or other percent preference established by the City under ORS 279.570(3).
3. Affirmative Program for Purchasing Oils with High Recycled Content: The City shall establish and maintain an affirmative program for purchasing oils containing the maximum content of recycled oil. This program shall include, but need not be limited to:
a. Placement of descriptions of the preference for recycled oil products in publications used to solicit bids or proposals from suppliers.
b. Descriptions of the recycled oil purchasing program at bidders’ or proposers’ conferences.
c. Discussion of the preference program in lubricating oil and industrial oil purchasing solicitations.
d. Efforts to inform industry trade associations about the preference program.
E. Purchasing of Retreaded Tires.
1. Definition: Retreaded tire means any tire that uses an existing casing for the purpose of vulcanizing new tread to that casing that meets all performance and quality standards in the Federal Motor Vehicle Safety Standards determined by the United States Department of Transportation.
2. All tires for use on the non-steering wheels of City vehicles shall, at the next required installation of tires, be re-equipped with retreaded tires.
3. Exception: PCC 5.33.060 E.2. shall not apply to:
a. Emergency vehicles as defined in ORS 801.260;
b. Other fire suppression or emergency assistance vehicles; or,
c. Passenger-carrying vehicles with a gross weight rating of one ton or more.
4. Cost Differential: At its discretion, the City may elect not to use retreaded tires if the cost per mile differential of retreaded tires exceeds the five percent preference set forth in ORS 279.570.
5.33.070 Exceptions and Exclusions to Competitive Solicitation.
A. Purpose. The purpose of PCC 5.33.070 is to establish procedures to implement exceptions and exclusions to competitive bidding as provided by ORS 279.011(6), ORS 279.015(1), and ORS 279.051. Bureaus of the City shall follow procedures of the Bureau of Purchases in any purchase of goods or services covered by PCC 5.33.070.
B. Exceptions and Exclusions Generally.
1. The following classes of contracts applicable to City purchasing are excepted from the competitive bidding requirements of state law by ORS 279.015(1):
a. Contracts made with other public agencies as defined by ORS 279.011(7), or the Federal Government;
b. Contracts made with qualified non-profit agencies providing employment opportunities for disabled individuals;
c. Public contracts exempt under ORS 279.015(2)(a) and (b);
d. Contracts for products, services or supplies if the value of the contract is less than $5,000;
e. Contracts between public agencies as defined by ORS 279.011(7), utilizing an existing solicitation or current requirements contract of one of the public agencies that is a party to the contract for which:
(1) The original contract met the requirements of ORS Chapter 279;
(2) The contract allows other public agency usage of the contract; and,
(3) The original contracting public agency concurs.
f. Negotiations as provided by ORS 279.015(1)(h) and PCC 5.33.340.
2. ORS 279.051 and ORS 279.011(6) provide for exclusion of the following classes of contracts from the competitive bidding requirements of state law, including:
a. Professional Technical and Expert Services Contracts; and
b. Contracts that are not public contracts, such as Park Concessions Contracts, Contracts for the Sale of Advertising in City Publications, and Intergovernmental Agreements for purposes other than the purchase of goods or services.
5.33.080 Procedures to Implement Exceptions and Exclusions.
A. Procedures for utilization of the exceptions and exclusions are provided in PCC 5.33.080. Where no procedure is provided, no additional procedure is required for the City to use the exceptions or exclusions unless otherwise determined by the Purchasing Agent.
1. Purchasing from Public Agencies and Purchasing from Existing Solicitations or Current Requirements Contract of a Public Agency. Purchases from state agencies or local government units inside Oregon may be made without competitive bidding. The City may purchase goods and services from contractors who are under contract with a public agency pursuant to ORS 279.015(1)(g) provided the original contract was competitively solicited as required by ORS Chapter 279, the original contract allows such usage, and the original contracting agency concurs.
2. Purchasing from the Federal Government and Purchasing from Established Federal Contracts. Purchases may be made from the federal government without competitive bidding. When the price of goods and services has been established by a contract of the federal government pursuant to a federal contract award, the City may purchase the goods and services from the federal vendor, in accordance with the federal contract, without additional competitive bidding. In exercising this authority, the City shall obtain and document permission from the appropriate federal agency and permission from the federal vendor that is providing the service or commodity, granting permission to the City to purchase under the federal contract.
3. Professional Technical and Expert Services. City contracts for professional, technical and expert services are personal service contracts as provided by ORS 279.051 and as such are not public contracts as provided by ORS 279.011(6). All purchases of these services shall be made as provided by PCC Chapter 5.68.
4. Park Concessions.
a. Except as provided in PCC 5.33.080 A.4.b., the Director of Portland Parks and Recreation is authorized to 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 as the Director of Portland Parks and Recreation may deem to be in the public interest; provided, that such contracts shall be made to the highest responsive, responsible bidder or best responsive, responsible proposer after the Purchasing Agent has solicited bids as provided by PCC Chapter 5.33; provided further, that if, when the Purchasing Agent advertises for bids, there is no acceptable bid received for a concession, that concession maybe granted by permit by the Director of Portland Parks and Recreation, upon such terms and conditions 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 that permitted by City Charter Section 2-105(a)(3).
b. Notwithstanding the provisions of PCC 5.33.080 A.4.a., concessions at the City's golf courses may be awarded in the following manner:
(1) The Purchasing Agent shall advertise for bids or proposals for golf concessions contracts in accordance with PCC Chapter 5.33, and specifications authorized by the Director of Portland Parks and Recreation. All bids or proposals shall be reviewed by a selection advisory committee appointed by the Director of Portland Parks and Recreation. The selection advisory committee shall screen qualifications and proposals, and, through a final interview process shall recommend the most advantageous bid or proposal to the Director of Portland Parks and Recreation.
(2) The Director of Portland Parks and Recreation is authorized to contract 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 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. The City Council may renew any golf concession contract upon request of the concessionaire and upon the recommendation of the Director of Portland Parks and Recreation, without calling for bids, for a term not to exceed that permitted by City Charter Section 2-105(a)(3).
5. Intergovernmental Agreements. Intergovernmental agreements for purposes other than purchase of goods or services shall comply with ORS Chapter 190 and shall be authorized and executed as specifically provided by ordinance of City Council. Any purchases from a public agency outside the boundaries of the State of Oregon, if of an amount normally requiring competitive bidding, and any purchase from contractors under contract with a public agency outside the boundaries of the State of Oregon if of an amount normally requiring competitive bidding shall be made by intergovernmental agreement pursuant to ORS Chapter 190 and shall be authorized and executed as specifically provided by ordinance of City Council.
6. Contracts for Sale of Advertising in City Publications. Advertising for City publications may be sold without competitive bidding. The City may utilize this exclusion when it publishes material and wants to recoup the cost of a particular publication 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.
5.33.090 Exemptions.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. Purpose. The purpose of PCC 5.33.090 is to implement public contract exemptions from competitive bidding created by the City pursuant to ordinance, that may be used by the City without City Council making and approving additional findings of fact pursuant to state law. Bureaus of the City shall follow procedures of the Bureau of Purchases in any purchase of goods or services covered PCC 5.33.090.
B. Exemptions Generally. All public contracts shall be based upon competitive bidding, except specific contracts or classes of contracts exempted under ORS Chapter 279.015 and PCC Chapter 5.33.
C. Specific Exemption Requests.
1. Any Bureau may request exemption of a specific contract or contracts from competitive bidding where such contract or contracts are not otherwise exempted by state or local law and as provided by PCC 5.33.090 C. All requests for exemptions shall be submitted to the Bureau of Purchases for processing. The Bureau of Purchases shall prepare the exemption request for approval by City Council, based on information supplied by the Bureau. The exemption request shall contain the following:
a. The nature of the project;
b. Estimated cost of the project;
c. A description of the cost savings expected to be achieved by the exemption from competitive bidding and the reasons competitive bidding would be inappropriate;
d. Proposed alternative contracting and purchasing practices to be employed;
e. The reasons why it is unlikely the exemption will encourage favoritism in the awarding of public contracts or substantially diminish competition for public contracts;
f. The estimated date by which it would be necessary to let the contract; and
g. Any other findings required by state law to support the exemption. For public improvement projects, findings shall have that meaning provided by ORS 279.011(5).
2. If necessary to support the exemption, the Bureau of Purchases may require a Bureau to provide any additional information the Bureau of Purchases deems necessary to determine whether exemption from competitive bidding is appropriate for a particular contract or contracts. The exemption shall not be submitted to City Council until properly supported by factual information.
D. Class Exemptions: Pursuant to ORS Chapter 279, City Council, acting as the Local Contract Review Board, has exempted by ordinance the following classes of contracts from the competitive bidding requirements of state law. The City, acting through the Purchasing Agent, may make purchases pursuant to these class exemptions as provided by PCC Chapter 5.33, without further authorization from City Council for amounts not to exceed $500,000. Exempted contracts for amounts in excess of $500,000 shall be specifically authorized by ordinance of City Council.
1. Emergency Purchases.
a. Emergency Defined: Pursuant to ORS 279.015(4)(a) and (5), the City may enter into a public contract without competitive bidding if an emergency exists and the emergency consists of circumstances creating a substantial risk of loss, damage, interruption of services or threat to public health or safety that could not have been reasonably foreseen and requires prompt award and execution of a contract to remedy the condition.
b. Limited Dollar Amount:
(1) The Purchasing Agent may declare the existence of the emergency and authorize the City or any of its bureaus to enter into an emergency contract under $50,000 without competitive bidding when immediate procurement of supplies, materials, equipment, labor or contractual services is essential to prevent delay in work or extra expense to the City under the circumstances defined in PCC 5.33.090 D.1.a.
(2) A bureau may enter into an emergency contract under $50,000 without the authorization of the Purchasing Agent under the circumstances defined in PCC 5.33.090 D.1.a. if because of an emergency the Purchasing Agent is unavailable. In these circumstances, the bureau director shall explain in writing the circumstances that warranted the emergency contract and the anticipated harm from failure to execute an emergency contract, and send the written explanation to the Purchasing Agent no later than 5:00 p.m. of the next work day following the transaction.
(3) After execution of the contract by the Purchasing Agent, the Purchasing Agent shall place on file written findings describing the emergency conditions that required prompt execution of the contract.
c. Unlimited Dollar Value: In case of an emergency requiring expenditure in excess of $50,000, the procedure shall be the same as that provided in PCC 5.33.090 D.1.b. except that the written consent of the Commissioner in Charge (or designee) of the bureau in need shall be required before work begins. For emergency purchases for amounts exceeding $500,000, the procedures shall be the same as for contracts in excess of $50,000, except the bureau director shall prepare an ordinance for approval by City Council at its next regular session. Change orders on emergency contracts shall follow the rules set forth in PCC 5.33.090 D.24.c. and d.
d. When possible, the City shall encourage competition in an emergency contract to the extent reasonable under the circumstances. A record of measures taken to encourage competition, the amounts of the bids, informal price quotations or proposals obtained and the reason for soliciting the contractor shall be made by the bureau making the emergency contract.
e. Award Within 60 Days: Any contract awarded under this exemption shall be awarded within 60 days following declaration of the emergency unless an extension is granted pursuant to ORS 279.015(5).
f. All documentation of emergency purchases as required by this Chapter shall be sent to the Purchasing Agent for filing and disposition.
2. Contracts Under Certain Dollar Amounts Per City Charter.
a. Contracts Under the Formal Bid Threshold: For any purchase not subject to the competitive bidding requirements of City Charter Section 8-105, and except as otherwise provided by this Chapter, the Purchasing Agent shall receive requisitions from various City offices, departments and bureaus, and may select the method of purchasing and the vendor that in the opinion of the Purchasing Agent will serve the best interest of the City. The City may, in its
discretion, let public contracts not to exceed the formal bid threshold for the purchase of goods, materials, supplies and services without competitive bidding, if the following conditions are met:
(1) The required goods, materials, supplies or services are unavailable from a Qualified Rehabilitation Facility as provided in ORS 279.835 to 279.855; and,
(2) The contract is for a single project; and,
(3) The contract is less than $5,000. In this circumstance, limited purchase orders may be used as provided by PCC 5.33.040 without any competitive process; or,
(4) The contract is more than $5,000 but less than the formal bid threshold. In this circumstance, the City shall, at minimum, obtain three informal price quotations, and the City shall keep a written record of the source and amount of the informal price quotations received. If three informal price quotations are not available, a lesser number will suffice provided that a written record is made of the effort to obtain the informal price quotations.
b. Public Improvements/Public Works: When the contract is for a public improvement as defined in ORS 279.011(8), or for public works as defined in ORS 279.348(3), and the contract price is under the formal bid threshold, the City shall follow the procedures in PCC 5.33.090 D.2.a.
3. Purchasing From Sole Source, Single Seller. The City may purchase a particular product or service available from only one source, without competitive bidding after documenting the solicitation file with findings to support the determination that the product is available from only one seller or source. Additional findings shall include:
a. Description of the product or services to be purchased including contemplated future purchases; and
b. The reasons the City is using this purchasing method, which shall include any of the following:
(1) Efficient utilization of existing equipment or supplies requires the acquisition of compatible equipment supplies, or services; or
(2) The product is required for exchange of software and data with other public or private agencies; or
(3) The particular product is for use in a pilot or an experimental project; or
(4) The product or service is the only one with the necessary quality, merit or functionality required by the City.
4. Manufacturer Direct Supplies. The City may contract to purchase goods and/or supplies directly from the manufacturer without competitive bidding if a large volume purchase is required, and the cost directly from the manufacturer is the same or less than the cost the manufacturer charges to its distributor. Purchases of this type are made on a contract-by-contract basis and are not requirements contracts.
5. Price Regulated Items. The City may contract for the direct purchase of goods or services without competitive bidding where the rate or price for the goods or services being purchased is established by federal, state, or local regulatory authority, including, but not limited to, postage, electricity, local garbage and water service.
6. Purchase of Advertising Contracts. Except as provided by City Charter Section 8-101, the City may purchase advertising in newspapers and written publications without competitive bidding.
7. Copyrighted Materials. The City may purchase copyrighted materials where there is only one known supplier available for such goods without competitive bidding. Examples of copyrighted materials covered by this exemption may include, but are not necessarily 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.
8. Investment/Borrowing Contracts. The City may invest public funds or borrow funds pursuant to City authority under state law and in accordance with applicable state and City laws, rules, and policies without competitive bidding.
9. Rating Agency Contracts. The City may purchase the services of Moody's Investors Service, Standard and Poor's, or similar rating agencies, without competitive bidding.
10. Underwriter Contracts. The City may contract for the purchase of underwriter services, without competitive bidding subject to the following conditions:
a. The City shall use the RFP process, including advertisement of notice of issuance of an RFP to solicit proposers for underwriter contracts.
b. The City shall award contracts to underwriters as provided by the RFP.
c. The best responsive and responsible proposer shall be selected by a selection committee composed of at least three individuals, one of whom must be a non-City representative.
d. The City shall prepare or have prepared a bond purchase agreement. The City official designated in the bond ordinance approved by City Council shall be authorized to execute the bond purchase agreement on behalf of the City.
11. Other Financial Products. The City may purchase other financial products such as bond insurance, surety bonds for City bond reserves, and liquidity facilities such as letters or lines of credit without competitive bidding.
12. Insurance Contracts. Contracts for insurance are exempt from competitive bidding. Except for Employee Benefit Insurance as provided in PCC 5.33.090 D.13., contracts for insurance shall be let by one of the following alternative procedures:
a. Insurance Consultant: The City may solicit proposals from insurance agents to perform insurance services as the City’s insurance consultant in connection with more than one insurance contract. Among the services to be provided is the securing of competitive proposals from insurance carriers for all coverages for which the insurance consultant is given responsibility:
(1) As part of the RFP process for selection of an insurance consultant, the City shall make reasonable efforts to inform known insurance agents in the competitive market area that it is considering such selection. These efforts shall include a public advertisement in at least one newspaper of general circulation in the Portland area and in at least one insurance trade publication of general circulation in the state. The advertisement shall generally describe the nature of the insurance that the City will require.
(2) Any contract period shall not exceed five years. An insurance consultant may serve more than one contract period. An insurance consultant of record shall qualify for a contract prior to each period as if each contract period were the first.
(3) In selecting an insurance consultant, the City shall select the consultant or consultants most likely to perform the most effective services.
b. Specific Proposals for Insurance Contracts: As an alternative to the process provided in PCC 5.33.090 D.12.a., the City may solicit proposals from insurance agents for the purpose of acquiring specific insurance contracts subject to the following conditions:
(1) The City shall make reasonable efforts to inform known insurance agents in the competitive market area of the subject matter of the contract, and to solicit proposals for providing the services required in connection with the contract. These efforts shall include public advertisements in at least one newspaper of general circulation in the Portland area and at least one insurance trade publication of general circulation in the state. The advertisement shall state the specific nature of the insurance acquired.
(2) The City shall select an insurance agent on the basis of the most advantageous offer considering coverage, premium cost, and service to be provided.
13. Employee Benefit Insurance Contracts. The City may purchase employee benefit insurance without competitive bidding subject to the terms of any applicable collective bargaining contract. The City may solicit proposals through the RFP process to obtain the services of an employee benefits consultant and/or the services of a claims processing contractor. Among the services to be provided is the securing of competitive proposals from
insurance carriers for all coverages for which the employee benefits consultant is given responsibility and the services of a claims processing contractor.
a. The City shall make reasonable efforts to make known in the competitive market area the City’s need for an employee benefits consultant, or a claims processing contractor and the subject matter of the proposed contract. These efforts shall include public advertisements in at least one newspaper of general circulation in the Portland area and at least one insurance trade publication of general circulation in the State.
b. The City shall select an employee benefits consultant or a claims processing contractor on the basis of the most advantageous offer considering cost and service to be provided.
c. The employee benefits consultant shall assist the City in soliciting proposals for employee benefits coverages according to an alternative competitive process as determined by the City.
14. Requirements Contracts.
a. The City may enter into a requirements contract (also known as an annual supply contract or price agreement) whereby it agrees to purchase goods or services for an anticipated need at a predetermined price or price discount from a price list, provided the contract is let by a competitive solicitation process pursuant to the requirements of ORS Chapter 279, and PCC Chapter 5.33.
b. Once a requirements contract is established, the City may purchase goods and services from the awarded contractor without additional competitive solicitation during the term of the contract.
c. The City shall use requirements contracts established by the City to purchase items covered by the contract, unless otherwise specified in the contract, allowed by law or this Chapter, or specifically authorized by the City.
d. The term of any City requirements contract, including renewals, shall not exceed five years unless otherwise specifically authorized by City Council.
15. Deficiency Corrections. The City may utilize a private developer’s contractor to correct minor project deficiencies which are the City’s responsibility if:
a. The contractor is qualified to perform the work and is already available on site;
b. The deficiency correction work is located at the site of the private developer’s project;
c. The estimated dollar value of the deficiency correction does not exceed $25,000; and,
d. The private developer’s contractor executes a form of City contract appropriate to the work and provides the City with evidence of any bonding and insurance required by the contract.
16. Utilization of Existing Contractors. The City may utilize a contractor for additional work unrelated to the original contract without competitive bidding if:
a. The contractor was originally selected as part of competitive process;
b. The contractor is qualified to perform additional work and is already available on site;
c. The additional work is located at or near the site of the original work; and,
d. The anticipated dollar value of the additional work does not exceed $25,000.
17. Equipment Maintenance, Repair and Overhaul.
a. Generally: The City may enter into a public contract for equipment maintenance, repair or overhaul without competitive bidding, subject to the following conditions:
(1) Service and/or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing; or
(2) Service and/or parts required are for sophisticated equipment for which specially trained personnel are required and such personnel are available from only one source.
b. The following limitations apply to PCC 5.33.090 D.17.:
(1) If the contract is more than $5,000, the Bureau shall submit in writing to the Bureau of Purchases the reasons why competitive bids or informal price quotations are deemed to be impractical. The Bureau of Purchases shall review submitted materials and if the purchase is approved by the Bureau of Purchases, the Bureau of Purchases shall document its file and enter directly into the contract. If the purchase is not approved, the purchase shall be made as otherwise provided by this Chapter.
18. Purchase of Used Personal Property or Equipment.
a. Definition: Used personal property or equipment is property or equipment which has been placed in use by a previous owner or user for a period of time recognized in the relevant trade or industry as qualifying the personal property or equipment as used, at the time of the City purchase. 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.
b. The City may purchase used property or equipment without competitive bidding.
19. Information Technology Contracts. The City may enter into a contract to acquire information technology hardware and software without competitive bidding. If the desired products must be compatible with existing City equipment and are only available from a sole source or single seller, the City shall also comply with the exemption provided by PCC 5.33.090 D.3 for these purchases. Alternatively, if the City’s needs can be met by products from more than one seller or source, then the City shall use the RFP process.
20. Telecommunications Hardware and Software. The City may enter into a contract to acquire telecommunications hardware and software without competitive bidding. If the desired products must be compatible with existing City equipment and are only available from a sole source or single seller, the City shall also comply with the exemption provided by PCC 5.33.090 D.3. for these purchases. Alternatively, if the City's needs can be met by products from more than one seller or source, then the City shall use the RFP process.
21. Telecommunications Services.
a. General Policy: The City shall secure the most competitive, cost- effective telecommunications services of the quality needed to meet all service performance requirements while minimizing administrative and service delivery costs. It is the City’s policy to follow competitive solicitation processes in obtaining telecommunications services.
b. In determining the appropriate purchasing method for telecommunications services, the City shall consider:
(1) The extent to which alternative services offered are comparable or may be substituted in technology, service provided, and performance. (For example, if the City requires digital services, analog services are not comparable and may not be substituted, or if the City requires fiber optic technology, then copper, microwave or satellite transmission technology may not be comparable or may not be substituted.)
(2) The extent to which alternative providers can respond to the City’s interest in consistency and continuity of services throughout its service area, reliability, volume discounts, owned facilities, disaster recover ability, equitable service for all users, centralized management, and limiting City liability. For example, to be considered as the City’s long-distance service provider, any long distance service vendor must be able to meet, support and interface with the City’s centralized automated billing requirements. The City shall document for the record its findings on these factors. In developing its findings, the City may solicit the information either through informal telephone or written contacts, or through a formal solicitation such as a Request for Information or Proposals.
22. Gasoline, Diesel Fuel, Heating Oil, Lubricants, and Asphaltic Products. The City is exempt from competitive bidding for the purchase of gasoline, diesel fuel, heating oil, lubricants and asphaltic products.
23. Hazardous Material Removal; Oil Cleanup.
a. The City may enter into contracts without competitive bidding when ordered to clean up oil or hazardous waste pursuant to the authority granted the Oregon Department of Environmental Quality (DEQ) under ORS Chapter 466. In exercising its authority under this exemption, the City shall:
(1) 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.
(2) The bureau responsible for managing or coordinating the cleanup shall submit a written description of the circumstances that require the cleanup and a copy of the DEQ order for the cleanup to the Bureau of Purchases along with a requisition authorizing the contract.
(3) The Bureau of Purchases shall record the measures taken under PCC 5.33.090 D.23.a.(1) to encourage competition, the amount of the informal price quotations or proposals obtained, if any, and the reason for selecting the contractor to whom award is made.
b. The City shall not contract pursuant to this exemption in the absence of an order from the DEQ to clean up a site which includes a time limit that would not allow the City to hire a contractor under normal competitive solicitation procedures. Goods and services to perform other hazardous material removal or cleanup shall be purchased in accordance with normal competitive solicitation procedures as provided by PCC Chapter 5.33.
24. Contract Amendments.
a. An amendment for additional work or product, including change orders, extra work, field orders, or other changes in the original specifications that increases the amount of the original contract less than 25% but not to exceed a total contract price of $500,000 may be authorized by the project manager of the contract, without City Council approval and without competitive bidding.
b. An amendment for additional work or product, including change orders, extra work, field orders, or other change in the original specifications that increases the original contract price in excess of 25% but not to exceed a total contract price of $500,000, may be authorized by the project manager without City Council approval and without competitive bidding, but such amendments are subject to the approval of the Purchasing Agent and the bureau manager.
c. Contract amendments that cause the total contract price to exceed $500,000 shall be authorized only by City Council.
d. Contract amendments are conditioned upon:
(1) An original valid contract exists between the parties;
(2) 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
(3) The solicitation document provided for such amendments; or
(4) Emergency: The original contract was let pursuant to a declaration of emergency, in accordance with ORS 279.015(4) and PCC 5.33.090 D.1.; or
(5) 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, as provided in ORS 279.318, or were enacted or amended after submission of the successful bid or proposal.
e. Substitute Performance: If the original contract required the contractor to provide a performance and payment bond, and the City has canceled the contract or terminated the contractor’s performance and notified the contractor’s surety of the cancellation or termination, the City may allow the contractor’s surety an opportunity to provide a substitute contractor to complete performance of the original contract. A substitute contractor’s performance shall be rendered pursuant to all material provisions of the contract. Such substitute performance, and any contract that uses a substitute contractor is exempt from competitive bidding and does not require approval of City Council. The Purchasing Agent is authorized to approve and execute any necessary contract amendments.
5.33.100 Scope of Rules.
A. All contracts shall be awarded by competitive bidding and are subject to this Chapter unless excepted, excluded or exempted by ORS Chapter 279 or PCC 5.33.070 or 5.33.090.
B. If federal funds are involved in any contract subject to this Chapter, federal laws, rules and regulations shall control in the event of conflict with state law or this Chapter.
5.33.110 Solicitation.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. Solicitation Policy: It is the policy of the State of Oregon and the City to encourage open and impartial competition in public contracting. Competition exists not only in prices, but also in a bidder’s or proposer’s ability to perform, its technical competence, its ability to provide timely deliverables and in the quality and performance of the products and services the bidder or proposer provides. An invitation to bid is a common method of procurement, however, it is not always the most advantageous or practical solicitation method.
B. Solicitation Methods: The City may encourage meaningful competition through a variety of solicitation methods. The City shall choose the solicitation method that is most likely to encourage offers representing optimal value to the City.
1. The City may use an invitation to bid if the City will receive optimal value by selecting the lowest priced offer that meets the technical requirements of the City’s specifications.
2. The City may use a request for proposal if the City will receive optimal value:
a. By selecting an offer using both price and non-price related factors, or
b. By selecting an offer using both price and non-price related factors and permitting negotiations pursuant to PCC 5.33.340, and
c. Only if the solicitation is not subject to Oregon law regarding invitation to bid, because an existing exemption permits use of the request for proposal, or the City creates a specific exemption for the solicitation.
C. Solicitation Documents shall include the following:
1. General Information.
a. Notice of any pre-offer conference as follows:
(1) The time, date and location of any pre-offer conference; and
(2) Whether attendance at the conference will be mandatory or voluntary; and
(3) That statements made by the City’s representatives at the conference are not binding upon the City unless confirmed by written addendum.
b. The deadline for submitting mandatory prequalification applications and the class or classes for which bidders or proposers must be prequalified if prequalification is a requirement;
c. The name and title of the person authorized by the City designated for receipt of offers and a person to contact for additional information;
d. Instructions and information concerning submission requirements including the address of the office to which offers must be delivered and any other special information, such as whether offers may be submitted electronically.
e. The time and place of opening;
f. The time of closing after which the City shall not receive offers, which time shall be not less than five days after the date of the last publication of the advertisement. The interval between the date of issuance of the solicitation document and a closing shall not be less than 14 days for an ITB and not less than 21 days for an RFP unless the City decides a shorter interval is in the public interest. If the City is issuing an ITB that may result in a contract for a public improvement with a value in excess of $75,000, the City shall not designate a time of closing that falls when the City is closed to the public or after 12 noon on Friday;
g. The form and submission of offers and any information required therein, including bid or proposal security, if any;
h. The office where the specifications for the work or goods may be reviewed;
i. A statement that each bidder to an ITB must identify whether the bidder is a resident bidder, as defined in ORS 279.029(6)(b);
j. If the contract resulting from a solicitation will be a contract for a public work subject to ORS 279.348 to 279.380 or the Davis-Bacon Act (40 U.S.C. 276a), a statement that no offer shall be received or considered by the City unless the offer contains a statement by the bidder or proposer as a part of its offer that it agrees to be bound by and will comply with the provisions of ORS 279.350 or 40 U.S.C. 276a.
k. Whether a contractor or a subcontractor under the contract shall be registered with the Construction Contractors Board as required by ORS 701.055, or licensed by the State Landscape Contractors Board as required by ORS 671.530;
l. If the work so requires, a statement that the City shall not receive or consider an offer from a bidder or proposer when the bidder or proposer is not registered with the Construction Contractors Board as required by ORS 701.055 or is not licensed by the State Landscape Contractors Board as required by ORS 671.530;
m. Contractor’s certification of nondiscrimination in obtaining required subcontractors in accordance with ORS 279.111.
n. Contractor’s certification of EEO compliance pursuant to PCC Chapter 3.100.
o. All Addenda issued by the City.
p. Preference for materials and supplies manufactured from recycled materials as provided by ORS 279.570 and PCC 5.33.050 C. to E. and 5.33.060 C. to E.
2. City Need. The character of the work or goods the City is purchasing including, if applicable, a description of the acquisition, specifications, delivery or performance schedule, inspection and acceptance requirements.
3. Evaluation process.
a. A statement that the City may reject any offer not in compliance with all prescribed solicitation procedures and requirements and other applicable laws, and that the City may reject for good cause any or all offers upon the City’s finding that it is in the public interest to do so;
b. The anticipated solicitation schedule, deadlines, protest process, and evaluation process, if any;
c. The basis for award whether base bid or alternates;
(1) Base bid. The base bid is a lump sum offered by the bidder to provide the goods and/or services for which the City intends to contract. As called for in the solicitation document, and as indicated on the bid pricing form, the base bid shall be independent of any additive or deductive alternates;
(2) Alternates. An alternate bid item is a fixed price offered by a bidder for optional goods and/or services for which the City has requested pricing in the solicitation document. Alternate bid items may be additive or deductive, and may or may not be purchased by the City;
d. Evaluation criteria which the City shall use to determine the responsible bidder with the lowest responsive bid or the responsible proposer with the best responsive proposal and the evaluation criteria the City shall use to determine acceptability of any product or service and the relative importance of the criteria;
(1) If the solicitation document is an invitation to bid, the City shall set forth objective evaluation criteria in the solicitation document. Examples of such criteria 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, performance history on other private and public contracts, experience of key personnel, adequacy of equipment and physical plant, financial capability, sources of supply, references and warranty provisions. Evaluation criteria need not be precise predictors of actual future costs; but, to the extent possible, such evaluation criteria shall be reasonable estimates based upon information the City has available concerning future use;
(2) If the solicitation document is a request for proposal, the City shall set forth evaluation criteria in the solicitation document. Evaluation criteria shall be as objective as possible but may include subjective criteria. Examples of evaluation criteria include price or cost, quality of a product or service, past performance, management, capability, personnel qualification, prior experience, compatibility, reliability, operating efficiency, expansion potential, experience of key personnel, adequacy of equipment or physical plant, financial capability, sources of supply, references and warranty provisions. Evaluation criteria need not be precise predictors of actual future costs and performance, but to the extent possible, such evaluation criteria shall be reasonable estimates based on information available to the City;
(3) If the solicitation document is a request for proposal and the City intends to negotiate terms and conditions of the contract, the City shall identify the specific terms and conditions in the solicitation document that are subject to negotiation and authorize bidders or proposers to propose certain alternative terms and conditions in place of the terms and conditions the City has identified as authorized for negotiation. The City shall describe the evaluation and negotiation process in accordance with PCC 5.33.110 C.3. and PCC 5.33.340 including the competitive range.
4. Contractual Terms and Conditions. The City shall establish the terms and conditions applicable to solicitation documents and contracts, provided such terms and conditions are not contrary to statutory or regulatory requirements. Such terms and conditions shall become an integral part of each contract. The City also may establish special terms and conditions applicable to specified contracts or categories of contracts. Any special terms and conditions shall be included in the solicitation documents and become an integral part of those contracts. The City shall include in the contract all terms and conditions that shall apply to the contract, including warranties and bonding requirements that the City considers necessary. Without limiting the preceding sentence, the City shall include the applicable provisions required by ORS 279.310 to 279.650 as follows:
a. Payment of all persons furnishing labor or material; contributions to Industrial Accident Fund; liens and withholding taxes (ORS 279.312);
b. If the contract is for a public improvement, a condition that the contractor shall demonstrate it has established a drug-testing program for its employees (ORS 279.312(2));
c. If the contract calls for demolition work as provided in ORS 279.313(1), a condition requiring the contractor to salvage or recycle construction and demolition debris, if feasible and cost-effective;
d. If the contract calls for lawn or landscape maintenance as provided in ORS 279.313(1), a condition requiring the contractor to compost or mulch yard waste material at an approved site, if feasible and cost effective;
e. Payment of claims by public officers; contractor and first-tier subcontractor liability for late payment on public improvement contracts; and right to file a complaint with the Construction Contractor’s Board for all contracts related to a public improvement contract; (ORS 279.314);
f. Hours of labor in compliance with ORS 279.316 and 279.338;
g. Environmental and natural resources regulations (ORS 279.318);
h. A condition requiring the use of a certified inmate work force in accordance with ORS 279.319, if the contract is for the removal, abatement or demolition of asbestos in a State building;
i. Payment for medical care and attention to employees (ORS 279.320);
j. Maximum hours and overtime (ORS 279.334);
k. Claims for overtime (ORS 279.336);
l. Overtime requirement for local governments (ORS 279.340 and 279.342);
m. Prevailing wage rates (ORS 279.348 to 279.365);
n. Fee paid to BOLI (ORS 279.352);
o. Retainage (ORS 279.400 to 279.430 and 279.435);
p. Prompt payment policy (ORS 279.435);
q. Contractor’s relations with subcontractors (ORS 279.445);
r. Notice of claim (ORS 279.528);
s. Contractor’s certification of compliance with the Oregon tax laws in accordance with ORS 305.385(6);
t. Contractor’s certification of nondiscrimination in obtaining required subcontractors in accordance with ORS 279.111;
u. A contract provision substantially as follows: Prior to the performance of any work under a contract awarded by the City, a contractor shall comply with the workers’ compensation law, ORS Chapter 656, as it may be amended, and if workers’ compensation insurance is required by ORS Chapter 656, the contractor shall maintain coverage for all subject workers as defined by ORS Chapter 656 and shall maintain a current, valid certificate of workers’ compensation insurance on file with the City Auditor for the entire period during which work is performed under the contract.
v. Contractor’s certification that all subcontractors performing work described in ORS 701.005(2) (construction work) be registered with the Construction Contractors Board in accordance with ORS 701.055, or licensed by the State Landscape Contractors Board in accordance with ORS 671.530 before the subcontractors commence work under the contract.
w. If federal grant funds are involved, the federal laws, rules and regulations applicable to the grant shall govern in the event they conflict with a provision required by ORS 279.545 to 279.746, local law or this Chapter.
x. 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.
y. A notification that all contracts of the City are subject to PCC Chapter 5.33.
z. Indemnification.
(1) All contracts of the City shall contain language substantially similar to the following: The contractor shall hold harmless, defend and indemnify the City and the City’s officers, agents and employees against all claims, demands, actions and suits (including all attorneys’ fees and costs) brought against any of them arising from contractor’s work or any subcontractor’s work under a City contract.
(2) Subject to the approval of the City Attorney, the City may make appropriate revisions to the indemnification language based on the requirements of any particular contract. Any revisions shall appear in the solicitation document.
aa. Insurance.
(1) Public Liability and Property Damage Insurance or other types of insurance may be required by the solicitation document.
(2) In the event the solicitation document for a particular contract requires Public Liability and Property Damage Insurance, the contract shall contain language substantially similar to the following:
(a) The contractor shall secure and maintain Commercial General Liability Insurance that protects the contractor and the City and its officers, agents and employees from any and all claims, demands, actions and suits for bodily injury, property damage, products and completed operations, contractual liability, personal injury, fire legal liability, owned and non-owned auto liability, employee-related claims, broad form property damage and any vicarious liability, arising from the contractor’s work under this contract, including operations of subcontractors. The insurance shall provide coverage by a single limit policy of not less than $500,000. The limits of the insurance shall be subject to statutory changes as to maximum limits of liability imposed on municipalities of the State of Oregon during the term of the contract. The insurance shall name as additional insureds the City and its officers, agents and employees. Except with respect to the limits of insurance, the insurance shall apply as if each named insured were the only named insured on the policy. Contractor’s insurance shall be primary insurance and not excess insurance. In the event other insurance exists, contractor’s insurance shall be solely liable and contribution by equal shares or other methods of insurance sharing shall not apply. The coverage shall apply as to claims between insureds on the policy. The insurance shall provide that the insurance shall not terminate or be canceled without thirty (30) days written notice first being given to the City Auditor. If the insurance is canceled or terminated prior to completion of the contract, the contractor shall provide a new policy with the same terms. The contractor agrees to maintain continuous, uninterrupted coverage for the duration of the contract.
(b) The contractor shall maintain on file with the City Auditor a certificate of insurance certifying the coverage required under PCC 5.33.110 C.4.aa. (2)(a). The adequacy of the insurance shall be subject to the approval of the City Attorney. Failure to maintain liability insurance shall be cause for immediate termination of this contract by the City.
(3) Subject to the approval of the City Attorney, the City may make appropriate revisions to the language contained in PCC 5.33.110 C.4.aa.(2)(a) and (b) based on the requirements of any particular contract. Any revisions shall appear in the solicitation document.
(4) The City may require any other form of insurance it deems necessary for a particular contract. The City Attorney shall approve language for other forms of insurance required by a particular contract. Any other forms of insurance required by a particular contract shall appear in the solicitation document.
bb. Other information, terms and conditions deemed necessary by the City for a particular contract.
D. Brand Names.
1. The City’s solicitation document shall not expressly or implicitly require any product by brand name or mark, nor the product of any particular manufacturer or seller except pursuant to an exemption granted under ORS 279.017(2) or as expressly authorized in PCC 5.33.280 C. and PCC 5.33.110 D.2. and 3.
2. “Or Equal” Specification. The City may identify products by brand name, mark or particular manufacturer or seller if the words “or equal”, “or approved equal”, “or equivalent”, “or approved equivalent”, or similar language is included in the solicitation document. The City shall determine in its sole discretion if an alternate product is equal or equivalent.
3. Specifying a Particular Brand Name, Make, or Product. The City may specify a brand name, make, or product without an "or equal" or equivalent suffix if there is no other practical method of specification, after documenting the solicitation file with the following:
a. A brief description of the solicitation to be covered, including contemplated future purchases;
b. The brand name, mark, or product to be specified; and
c. The reasons the City is seeking this purchasing method, which shall include any of the following findings in the solicitation file:
(1) It is unlikely that specification of the brand name, mark, manufacturer, seller or product will encourage favoritism in the award of the public contracts or substantially diminish competition; or
(2) Specification of the brand name, mark or product would result in cost savings to the City; or
(3) There is only one manufacturer or seller of the product of the quality required; or
(4) Efficient utilization of existing equipment or supplies requires the acquisition of compatible equipment or supplies.
5.33.120 Bids or Proposals Are Offers.
A. Offer and Acceptance: The bid or proposal is the bidder's or proposer's offer to enter into a contract which, if the bid or proposal is accepted for award by the City, binds the bidder or proposer to a contract and the terms and conditions contained in the solicitation document unless the bid or proposal is modified or withdrawn in accordance with the procedure provided in PCC 5.33.220 prior to the time of bid or proposal opening. The offer shall be held open by the bidder or proposer for the City’s acceptance for the period specified in the solicitation document or for 30 days if no period is specified. The City’s award of the contract constitutes acceptance of the offer and binds the bidder or proposer to the contract.
B. Responsive Offer: The bid or proposal shall be a complete offer and fully responsive to the solicitation document. The City may award a contract only to a responsible bidder or proposer with a responsive offer.
C. Contingent Offer: Unless a proposer is expressly authorized by the solicitation document to propose alternate terms and conditions, bidders or proposers shall not make their bids or proposals contingent upon the City's acceptance of specifications or contract terms or conditions that conflict with or are in addition to those contained in the solicitation document. Contingent bids or proposals may result in rejection as provided by PCC 5.33.300 B.6.
D. Exceptions to Terms and Conditions:
1. Bidders and proposers are responsible for knowing and understanding the terms and conditions included as applicable to each contract and set of solicitation documents;
2. By signing and submitting a bid or proposal, the bidder or proposer 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 its offer is accepted by the City, unless a request for proposal authorizes proposal of alternative terms. In that case, the proposer agrees to be bound by the non-negotiable terms and conditions of the contract and any proposed terms and conditions offered for negotiation upon the City’s written acceptance of the proposed terms and conditions.
3. Bids or proposals which take exception to the specifications or contract terms and conditions, may be rejected as not responsive to the solicitation document unless the right to take exception is specifically granted in the solicitation document, or if the exception is determined by the City in its sole discretion to be a minor informality.
4. If exceptions to the terms and conditions are allowed by the solicitation documents, the exceptions shall be clearly stated in writing by the bidder or proposer in the signed returned bid or proposal. Exceptions to the terms and conditions become contractual obligations only upon written acceptance by the City.
5.33.130 Electronic Bids and Proposals.
A. City Authorization. The City may authorize the submission of electronic bids or proposals.
B. Required Factors. In determining whether to authorize electronic bids or proposals, the City shall consider factors such as:
1. Anticipated bid or proposal size and volume;
2. Whether there is an urgent need for the goods or services being procured;
3. Frequency of price changes;
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.
C. 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.
D. 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.
6. Transmission Information. Data and compatibility characteristics as follows:
a. Telephone number or address of receiving electronic equipment;
b. Compatibility characteristics of receiving electronic equipment, such as make and model number, receiving speed, communications protocol.
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, including, but not limited to the following:
a. Receipt of garbled or incomplete bid or proposal documents.
b. Availability or condition of the receiving electronic equipment.
c. Incompatibility between the sending and receiving equipment.
d. Delay in transmission or receipt of documents.
e. Failure of the bidder or proposer to properly identify the documents.
f. Illegibility of documents.
g. Security and confidentiality of data.
5.33.140 Public Notice of Solicitation.
A. Distribution: Solicitation documents and notices of the availability of solicitation documents shall be mailed, placed on the City's website or otherwise made available or furnished to a sufficient number of bidders or proposers for the purpose of fostering and promoting competition. Notices of availability shall indicate where, when, how, and for how long the solicitation document may be obtained; generally describe the work or goods to be acquired; and may contain other appropriate information. The City may charge a fee or require a deposit for the solicitation documents. The Purchasing Agent shall fix the amount of fee or deposit. For solicitation documents where a deposit is required, the Purchasing Agent shall determine the time for return of the solicitation documents. The Purchasing Agent shall maintain a suitable record of deposits received, and shall hold them pending refund upon return of the solicitation documents or loss of the deposit. Currency offered as a deposit shall be paid to the City Treasurer by the prospective bidder or proposer and shall be held in the Trustee Fund pending order by the Purchasing Agent for loss or refund.
B. Advertising:
1. Unless exempt as provided by PCC 5.33.090, notice of every solicitation of bids or proposals shall be advertised. An advertisement for bids or proposals shall be published at least once in the City official newspaper and in as many additional issues and publications as the City may determine to be necessary or desirable to foster and promote competition. The City determines that electronic advertisement is likely to be cost effective. Advertisements for bids or proposers may be published electronically instead of or in addition to newspaper advertisements. However, if the contract is for a public improvement with an estimated cost in excess of $125,000, the advertisement for bids or proposals shall be published in at least one trade newspaper of general statewide circulation and may be published electronically or in additional publications as determined appropriate by the Purchasing Agent.
2. All advertisements for bids or proposals shall state:
a. Whether the contract is for a public work subject to ORS 279.348 to 279.380 or the Davis-Bacon Act (40 USC §276a). For a public work project, the City shall include a statement that no bid or proposal shall be reviewed or considered by the City unless the bid or proposal contains a statement by the bidder or proposer that the bidder or proposer shall comply with the requirements of the prevailing wage laws as provided by ORS 279.348 to 279.380 or 40 USC '276a;
b. The closing date and time after which bids or proposals shall not be received, which shall not be less than 5 days after the date of the last publication of the advertisement;
c. The date that prequalification applications shall be filed and the class or classes of work for which bidders or proposers shall be prequalified if prequalification is a requirement;
d. The character of the work to be performed or the goods to be purchased;
e. The office where contract terms, conditions and the specifications for the work, materials or things may be reviewed;
f. The name, title and address of the authorized person designated by the City to receive bids or proposals;
g. The scheduled date, time, and place that the City shall publicly open the bids or proposals.
h. That the City may reject any bid or proposal that does not comply with all prescribed public procurement procedures and requirements, and that the City may reject for good cause any and all offers upon the City’s finding that it is in the public interest to do so;
i. That the offer shall contain a statement indicating whether the bidder or proposer is a resident bidder as defined by ORS 279.029(6)(b);
j. For a public improvement project, whether the contractor or a subcontractor shall be licensed under ORS 468A.720 to work with asbestos-containing materials; and,
k. That the City shall not receive or consider an offer for a construction contract unless the bidder or proposer is registered with the Construction Contractors Board as required by ORS 701.055, or licensed by the State Landscape Contractors Board, as required by ORS 671.530.
C. Notice of Solicitation. A copy of each notice of solicitation shall be kept at the City Bureau of Purchases. Bidders and proposers may obtain a copy upon request.
5.33.150 Bidder, Proposer or Product Prequalification for Contracts Other than Public Improvements.
A. The City may require mandatory prequalification of bidders or proposers for contracts other than public improvements. When prequalification is required by the solicitation document the City shall not consider the bid or proposal of any prospective bidder or proposer who has not prequalified in accordance with the solicitation document. Any dispute regarding prequalification for contracts other than public improvements shall be resolved as provided by PCC 5.33.470.
B. Product Prequalification:
1. When specific design or performance specifications must be met or such specifications are impractical to create or reproduce for a type of product to be purchased, the City may specify a list of approved or qualified products by reference to the prequalified product(s) of particular manufacturers or vendors in accordance with PCC 5.33.110 D., and the following product prequalification procedure:
a. Notice: The City shall make reasonable efforts to notify all known manufacturers and vendors of competing products of the City’s intent to compile a list of prequalified products. The notice shall explain the opportunity manufacturers and vendors of competing products will have to apply to have their product(s) included on the City’s list of prequalified products. At its discretion, the City may provide notice by advertisement in the official City newspaper or other appropriate trade publication; or instead of advertising, the City may provide written notice to those manufacturers and vendors appearing on the appropriate list maintained by the City; and
b. Time to Apply: The City shall accept manufacturer and vendor applications to include products in the City’s list of prequalified products up to fifteen (15) days prior to the initial advertisement for bids or proposals for the type of product to be purchased, unless otherwise specified in the advertisement or in the City’s written notice.
2. If the City denies an application for including a product on a list of prequalified products, the City shall promptly provide the applicant with a written notice of the denial and include the reason for denial. The applicant may submit a written appeal within ten (10) days to the Purchasing Agent to request review and reconsideration of the denial. The decision of the Purchasing Agent shall be final.
5.33.160 Bid or Proposal Preparation Instructions.
A. Bids or proposals shall be submitted in accordance with the solicitation document. Bids or proposals shall be typed or prepared in ink and shall be signed in ink by the bidder, proposer, or an authorized representative of the bidder or proposer.
B. Bids or proposals shall be made on the form(s) provided in the solicitation document unless bidders or proposers are otherwise instructed in the solicitation document.
C. Alterations or erasures, if any, shall be initialed in ink by the person signing the bid or proposal.
D. Bids and proposals shall contain a fully executed bid or proposal package, including all required documents and descriptive literature.
5.33.170 Bidder or Proposer Submissions.
A. Product samples and descriptive literature. Product samples or descriptive literature may be required when it is necessary or desirable to evaluate the quality, features or characteristics of the items bid or proposed. Product samples shall be returned, disposed of, or made available for return to the bidder or proposer in accordance with provisions contained in the solicitation documents.
B. Identification of bids or proposals.
1. To ensure proper identification and to facilitate handling, bids or proposals shall be submitted in a sealed envelope appropriately marked or in the envelope provided by the City, whichever is applicable. If the City permits bids or proposals to be submitted electronically, the bidder or proposer shall identify and submit bid or proposal documents exactly as required in the City's solicitation documents.
2. The City shall not be responsible for the identification and handling of bids or proposals not properly submitted in the designated manner or format.
C. Receipt of bids or proposals. It is the bidder's or proposer's responsibility to ensure that bids or proposals are delivered to and received by the Bureau of Purchases at the required delivery point, prior to the stated bid or proposal closing time, regardless of the method used to submit or transmit them. Bids or proposals not so received are late as provided by PCC 5.33.240 and shall be returned to the bidder or proposer unopened. If any late submission is opened inadvertently, the procedure provided by PCC 5.33.230 A. shall apply except the submission shall be returned to the sender.
5.33.180 Bid or Proposal Security.
A. Bid or proposal security not to exceed 10 percent of the bid or proposal may be required by the City for contracts other than public improvement contracts in order to guarantee acceptance of the award. This requirement shall be stated in the solicitation document. The City may waive the bid or proposal security requirements of ORS 279.027 for contracts other than those for public improvements in accordance with ORS 279.033.
B. The City may require bid or proposal security even if it has exempted a class of solicitations from bid or proposal security.
C. The bid or proposal security shall be forfeited if the bidder or proposer fails to execute the contract promptly and properly after the City has accepted its bid or proposal.
D. The City shall not use bid or proposal security to discourage competition.
E. Return of bid or proposal security. The bid or proposal security of all unsuccessful bidders or proposers 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 bids or proposals have been rejected. The City may return the bid or proposal security of unsuccessful bidders or proposers after bid or proposal 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. Surety bond furnished by a surety company authorized to do business in the State of 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; or
2. Irrevocable letter of credit issued by an insured institution as defined in ORS 706.008(12); or
3. Cashier's check, or bidder or proposer's certified check; or
4. Annual surety bond filed with the City (except for public improvements contracts) if the surety company meets the requirements of PCC 5.33.180 F.1.
5.33.190 Pre-Bid and Pre-Proposal Conferences.
A. Purpose. The City may hold pre-bid or pre-proposal conferences with prospective bidders or proposers, prior to closing, to explain the procurement requirements or to conduct site inspections. Such conferences shall be announced to prospective bidders or proposers in the solicitation document.
B. Required attendance. As a condition for bidding or proposing, the City may require mandatory attendance at the pre-bid or pre-proposal conference. A bidder or proposer who fails to attend a mandatory conference shall not be eligible to receive a contract and any bid or proposal from such a bidder or proposer shall be rejected as nonresponsive.
C. Scheduled time. The pre-bid or pre-proposal conference shall be held within a reasonable time after the solicitation document has been issued, but sufficiently before the bid or proposal closing to allow bidders and proposers to consider information provided at the conference in preparing bids or proposals.
D. Statements not binding. Statements made by City representatives at the pre-bid or pre-proposal conference are not binding on the City and shall not change the solicitation document unless the City confirms the statements and changes to all prospective bidders or proposers by written addendum to the solicitation document.
E. City announcement. The City shall announce, to all prospective bidders or proposers, in the solicitation document:
1. The time, date and location of the conference; and
2. Whether attendance at the conference will be mandatory or voluntary.
3. That statements made by the City’s representatives at the conference are not binding on the City unless confirmed by written addendum.
5.33.200 Request for Change or Protest of Solicitation Specifications or Contract Provisions; Clarifications.
A. Time for submission of request for change or protest. Unless otherwise provided in the solicitation document, a bidder or proposer shall deliver any request for change or protest of the solicitation documents, specifications or contract provisions to the City in writing in accordance with the following deadlines:
1. All contracts - Five (5) days prior to bid or proposal closing;
2. Addenda - Thirty-six (36) hours following issuance of the addendum unless a different deadline is set forth in the addendum. Only matters added or modified by the addendum may be addressed in a request for change or protest of an addendum.
B. Any request for change or protest shall include a detailed statement of the legal and factual reasons for the request for change or protest; any proposed changes to specifications or contract provisions; a description of the prejudice to the bidder or proposer; and, a statement of the form of relief requested. No request for change or protest of the content of solicitation document specifications or contract provisions shall be considered after the deadline established for submitting such request or protest. The City shall notify the applicable bidder or proposer if the City entirely rejects the request or protest. If the City agrees with the request or protest, 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 or protest is received in accordance with PCC 5.33.200 A., the bid or proposal closing date may be extended by the Purchasing Agent if the Purchasing Agent determines an extension is necessary to allow consideration of the request or protest and issuance of any addenda to the solicitation document.
D. Identification of request for change or protest. Envelopes containing requests for change or protests of solicitation specifications or contract provisions shall be marked with the following information:
1. Solicitation Specification or Contract Provision Request for Change or Protest.
2. Solicitation Document Number or Other Identification.
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 5.33.340.
F. Authority to Resolve Protests. The Purchasing Agent shall have the authority to settle or resolve a written request for a change or protest of solicitation document specifications or contract provisions submitted in accordance with the requirements of PCC 5.33.200. Any dispute arising from the Purchasing Agent’s decision shall be resolved as provided by PCC 5.33.350.
G. Clarification. Prior to the deadline for submitting a request for change or protest, a bidder or proposer 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 addenda.
5.33.210 Addenda to Solicitation Documents.
A. Form. Changes to solicitation documents shall be accomplished only by written addenda. A bidder or proposer shall provide written acknowledgement of receipt of all issued addenda with its bid or proposal, unless otherwise provided in the addenda.
B. Distribution. Addenda shall be labeled as such and distributed to all prospective bidders or proposers known to have obtained the solicitation documents or to have attended any mandatory or prebid or preproposal conference. The City shall make a reasonable effort to notify prospective bidders or proposers of addenda. However, it is the responsibility of bidders and proposers to ascertain the issuance of and be responsive to all addenda.
C. Timeliness. Addenda shall be issued no later than 72 hours before the bid or proposal closing time.
D. Extensions. The Purchasing Agent may extend the bid or proposal closing date and time to allow prospective bidders or proposers to analyze and adjust to changes made by addenda. The City shall notify prospective bidders or proposers of the new closing date and time either in the addenda or in a writing accompanying the addenda. Notification by the City shall be complete upon mailing of the addenda or writing by the City.
5.33.220 Modification or Withdrawal of Bids or Proposals.
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. Bid or Proposal Modification
2. Solicitation Number or Other Identification
B. Withdrawals:
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 bids or proposals shall be marked with the following information:
a. Bid or Proposal Withdrawal
b. Solicitation Number or Other Identification
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 5.33.240 and shall not be accepted except as provided by PCC 5.33.250. Any late submission shall be returned to the bidder or proposer unopened. If any late submission is opened inadvertently, the procedure provided by PCC 5.33.230 A. shall apply except the submission shall be returned to the sender.
5.33.230 Receipt, Opening, Recording and Availability of Bids and Proposals.
A. Receipt. Each bid or proposal, and any modifications, 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 bids, proposals or modifications are opened inadvertently or are opened prior to the time and date set for bid or proposal opening because they were improperly identified by the bidder or proposer, the opened bids, proposals 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 solicitation file.
B. Opening and Recording. Bids, proposals and modifications 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 or proposer, the bid or proposal 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. Except to the extent the bidder or proposer designates trade secrets or other proprietary data to be confidential, opened bids or proposals and the City’s solicitation file shall be available for public inspection within a reasonable time and as provided by 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 nonconfidential portion of the bid or proposal, material designated as confidential shall accompany the bid or proposal but the bidder or proposer shall separate it from the remainder of the bid or proposal. Prices, makes, model or catalog numbers of items offered, scheduled delivery dates, and terms of payment shall be publicly available regardless of the bidder’s or proposer’s designation to the contrary. Copies of public records will be made available upon payment of the City’s charges.
5.33.240 Late Bids and Proposals.
Any bid or proposal or portion of a bid or proposal received after the time and date set in the solicitation document or this Chapter for closing of bids or proposals is late. No late bids or proposals shall be considered. The Bureau of Purchases’ time clock shall be the clock of record and the date and time imprint of that clock on a bid or proposal shall determine the timeliness of the submission. Any late submission shall be returned to the bidder or proposer unopened. If any late submission is opened inadvertently, the procedure provided by PCC 5.33.230 A. shall apply.
5.33.250 Mistakes in Bids or Proposals.
A. General. Bid or proposal correction or withdrawal by reason of a nonjudgmental mistake is permissible but only to the extent it is not contrary to the interest of the City or the fair treatment of other bidders or proposers.
B. Mistakes Discovered After Bid or Proposal Closing But Before Award. The following procedures shall be applied in situations where mistakes in bids or proposals are discovered after the time and date set for bid or proposal closing but before award:
1. Errors of Judgment. The City shall not allow a bidder or proposer to correct or withdraw a bid or proposal for an error in judgment.
2. Minor informalities. Minor informalities are matters of form rather than substance that are evident from the bid or proposal documents, or are insignificant mistakes that can be waived or corrected promptly without prejudice to other bidders, proposers or the City; that is, the informality does not affect price, quantity, quality, delivery, or contractual conditions. The City may waive, or permit a bidder or proposer to correct a minor informality. Examples of minor informalities include but are not limited to:
a. Failure to return the correct number of signed bids or proposals or the correct number of other documents required by the solicitation documents.
b. Failure to sign the bid or proposal in the designated space, provided a signature appears in the bid or proposal evidencing an intent to be bound.
c. Failure to acknowledge receipt of an addendum to the solicitation document provided it is clear on the face of the bid or proposal that the bidder or proposer received the addendum and intended to be bound by its terms, and the addendum involved did not affect price, quantity, quality, delivery or contractual conditions.
3. Mistakes where intended correct bid or proposal is evident. If the mistake and the intended correct bid or proposal item are clearly evident on the face of the bid form or proposal document, or can be substantiated from accompanying documents, and when the bidder or proposer confirms the City’s correction in writing, the City may correct evident errors and accept the bid or proposal. Examples of mistakes that may be clearly evident on the face of the bid form or proposal document are typographical errors, errors in extending unit prices, transposition errors, and arithmetical errors. Mistakes that are clearly evident on the face of the bid form or proposal document also may include instances in which the intended correct unit or amount is made evident by simple arithmetic calculations. For example, a missing unit price may be established by dividing the price of the units by the quantity of units for that item, or, a missing or incorrect total bid or proposal price for an item may be established by multiplying the unit price by the quantity when those figures are available on the bid or proposal. For discrepancies between unit prices and extended prices, unit prices shall prevail.
4. Mistakes where intended correct bid or proposal is not evident. The City shall not accept a bid or proposal in which a mistake is clearly evident on the face of the bid or proposal but the intended correct bid or proposal is not clearly evident or cannot be substantiated from documents submitted with the bid or proposal, pursuant to solicitation document requirements.
5. Other Errors. The City may permit a bidder or proposer to withdraw a bid or proposal based on other errors only if the bidder or proposer shows by clear and convincing evidence the nature of the error and that the error is not a judgment error, minor informality, or an evident error.
5.33.260 Time for Acceptance.
Bids and proposals shall be irrevocable, valid and binding on the bidder or proposer for not less than 30 days from closing unless otherwise specified in the solicitation document.
5.33.270 Extension of Time for Acceptance of Bid or Proposal.
After opening bids or proposals, the Purchasing Agent may request orally or in writing that bidders or proposers extend, in writing, the time during which the City may consider their bids or proposals, even if the 30 day period provided by PCC 5.33.260 has elapsed. If a bidder or proposer agrees to such an extension, the offer shall be irrevocable, valid and binding on the bidder or proposer for the agreed upon extension.
5.33.280 Bid or Proposal Evaluation and Award.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. General. The contract, if awarded, shall be awarded to the responsible bidder submitting the lowest, responsive bid or the responsible proposer submitting the best, responsive proposal. Consistent with the provisions of the solicitation document, and in the public interest as determined by the City, awards may be made by item, groups of items, or entire bid or proposal. The City reserves the right to reject any or all bids or proposals not in compliance with the solicitation document or with all prescribed public solicitation procedures, or for good cause to reject any or all bids or proposals upon a finding of the City that it is in the public interest to do so as further provided in PCC 5.33.300 and 5.33.310. In its solicitation document, the City may reserve the right to condition the award of a contract in which subcontractors will be used to a bidder or proposer whose subcontractors have been prequalified or that fall within a defined class of subcontractors. If a bidder or proposer submits a subcontractor for use that has not been prequalified or who does not fall within the designated class, the bidder or proposer shall be considered nonresponsive to the solicitation document and its bid or proposal shall be rejected.
B. Requirements and Evaluation Criteria. The solicitation document shall set forth any requirements and evaluation criteria which shall be used to determine the lowest responsive and responsible bidder or best responsive and responsible proposer. No bid or proposal shall be evaluated for any other requirement or evaluation criterion that is not disclosed in the solicitation document or in accordance with any applicable law or rule.
C. Product Acceptability:
1. The solicitation document shall set forth the evaluation criteria to be used in determining product acceptability. The City may require the submission of product samples, descriptive literature, technical data, or other material, and may also provide for accomplishing any of the following prior to award:
a. Demonstration, inspection or testing of a product prior to award for such characteristics as quality or workmanship;
b. Examination of such elements as appearance, finish, taste, or feel; or
c. Other examinations to determine whether the product conforms with specifications.
2. The acceptability evaluation is conducted only to determine that a bidder’s or proposer's offering is acceptable as provided in the evaluation criteria in the solicitation document. Any bidder’s or proposer's product which does not meet the minimum requirements shall be rejected. Product rejections are not considered bidder or proposer disqualifications and are not grounds for appeal under ORS 279.043, or PCC 5.33.330.
D. Evaluation of Bids. Bids shall be evaluated to determine which responsible bidder offers the lowest responsive bid to the City in accordance with the evaluation criteria set forth in the solicitation document. Only objectively measurable evaluation criteria which are set forth in the solicitation document shall be applied in evaluating the bids. Examples of such evaluation criteria include, but are not limited to, conversion costs, transportation cost, volume weighing, trade-in allowances, cash discounts, credit card usage, depreciation allowances, cartage penalties, ownership or life-cycle cost formulas, performance history on other private and public contracts, experience of key personnel, adequacy of equipment and physical plant, financial capability, sources of supply, references and warranty provisions. Evaluation criteria need not be precise predictors of actual future costs; but, to the extent possible, such evaluation criteria shall:
1. Be reasonable estimates based upon information the City has available concerning future use;
2. Treat all bids equitably; and
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at the least cost.
E. Oregon Preference. For the purpose of awarding the contract, in determining the lowest responsive bidder, the City shall add a percentage increase to the bid of a nonresident bidder equal to the percentage, if any, of the preference given to that bidder in the state in which the bidder resides.
F. Evaluation of Proposals. Proposals shall be evaluated to determine the responsible proposer submitting the best responsive proposal to the City in accordance with the evaluation criteria set forth in the solicitation document and applicable law. Only the evaluation criteria which are set forth in the solicitation document shall be applied. The evaluation criteria shall be as objective as possible but may include subjective criteria. Unless proposers protest the evaluation criteria in advance of the proposal closing date as provided by PCC 5.33.200, no challenge of the evaluation criteria shall be permitted. Examples of evaluation criteria may include, but are not limited to, price, cost, quality of product or service, capability, compatibility, product reliability, operating efficiency, expansion potential, prior experience including performance history on other private and public contracts, experience and qualifications of key personnel including management, adequacy of equipment and/or physical plant, financial capability, sources of supply, references and warranty provisions. Evaluation criteria need not be precise predictors of actual future costs and performance; but to the extent possible, such evaluation criteria shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at the least cost.
G. Clarification of Proposals: The City may seek clarification of a proposal, but only if the clarification does not vary, contradict or supplement the proposal. The City shall not seek clarification of a nonresponsive proposal. A proposer shall submit any requested clarification in a signed writing and any clarification becomes part of the proposer’s proposal.
H. Restrictions. The City shall not award a contract to a bidder or proposer submitting a higher quality item than that designated in the solicitation document if such bidder or proposer is not also the lowest responsive responsible bidder or the best responsive, responsible proposer as determined by PCC 5.33.280.
5.33.290 Tied Bids or Proposals.
Low tied bids or high tied proposals are low responsive bids from responsible bidders or high responsive proposals from responsible proposers that are identical and which meet all the requirements and criteria set forth in the solicitation document. If awarded, the City shall award the contract based on the following order:
A. The City shall prefer goods or services that have been manufactured or produced in this state pursuant to ORS 279.021(1);
B. The City shall then prefer the bid of the bidder or the proposal of a proposer whose principal offices or headquarters are located in Oregon;
C. If a tie remains after the City applies PCC 5.33.290 A. and B., the City shall award the contract by drawing lots among any tied Oregon bidders or proposers. Such bidders or proposers shall be given notice and an opportunity to be present when the lots are drawn;
D. If a tie remains after the City applies PCC 5.33.290 A. and none of the tied bidders or proposers are located in Oregon, the City shall award the contract by drawing lots among any tied bidders or proposers. Such bidders or proposers shall be given notice and an opportunity to be present when the lots are drawn.
E. In the event a drawing of lots is required to break a tied bid or proposal, the Purchasing Agent shall determine a fair and appropriate procedure.
5.33.300 Rejection of Individual Bids or Proposals.
A. General. In accordance with ORS 279.035, the City may reject any individual bid or proposal, in whole or in part, not in compliance with all prescribed solicitation procedures and requirements, and may reject for good cause any bid or proposal upon a written finding of the City that it is in the public interest to do so.
B. Reasons for Rejection. Reasons requiring rejection of a bid or proposal in whole or in part include but are not limited to the City’s finding that:
1. The City required mandatory prequalification and the bidder or proposer has not been prequalified under ORS 279.039, PCC 5.33.150, or PCC 5.33.470; or
2. The bidder or proposer has been disqualified by a public contracting agency under ORS 200.075, ORS 279.037, or PCC 5.33.330; or
3. The contract is for a public work and the bidder or proposer has been declared ineligible by the Commissioner of the Bureau of Labor and Industries under ORS 279.361; or
4. The bidder or proposer is not responsible. Bidders or proposers are required to demonstrate their ability to perform satisfactorily under a contract. Before awarding a contract, the City is required to have information that indicates the bidder or proposer meets the standards of responsibility. A bidder or proposer is not responsible if the City finds:
a. The bidder or proposer does not have available the appropriate financial, material, equipment, facility and personnel resources and expertise necessary to demonstrate the capability of the bidder or proposer to meet all contractual responsibilities, or the ability to obtain such resources.
b. The bidder or proposer does not have a satisfactory performance record. The City shall carefully scrutinize the bidder’s or proposer’s record of contract performance if the bidder or proposer is or recently has been materially deficient in contract performance. In reviewing performance, the City shall determine whether the deficient performance was expressly excused under the terms of the contract, or whether the bidder or proposer took appropriate corrective action. The City may review the bidder’s or proposer’s performance on both public and private contracts in determining the bidder’s or proposer’s record of contract performance. The City shall document in the solicitation file the record of performance of the bidder or proposer and the basis of finding non-responsibility if the City finds the bidder or proposer not to be responsible.
c. The bidder or proposer does not have a satisfactory record of integrity. A bidder or proposer may lack integrity if the City determines the bidder or proposer demonstrates a lack of business ethics such as violation of state environmental laws or false certification made to a public agency. The City may find a bidder or proposer non-responsible based on the lack of intergrity of any person having influence or control over the bidder or proposer, such as a key employee or a parent company, predecessor or successor company of the bidder or proposer that has the authority to significantly influence performance of the contract. The standards for disqualification provided in PCC 5.33.330.B may be used to determine a bidder’s or proposer’s integrity. The City shall
document in the solicitation file the record of integrity of the bidder or proposer and the basis for finding non-responsibility if the City finds the bidder or proposer not to be responsible.
d. The bidder or proposer is not legally qualified to contract with the City.
e. The bidder or proposer has not supplied all necessary information in connection with the inquiry concerning responsibility. If the bidder or proposer 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 bidder or proposer is not responsible.
5. City Right to Investigate: The City has the right, prior to awarding any City contract, to make such investigation as is necessary to determine whether a bidder or proposer is responsible. This investigation may include, but is not limited to:
a. An inquiry into the responsibility of the bidder’s or proposer’s proposed subcontractors and suppliers; and
b. Requiring a bidder or proposer to demonstrate its financial ability to perform the contract. In exercising this right, the City shall notify the apparent successful bidder or proposer in writing to submit such documentation as the City deems necessary to complete a thorough evaluation of the bidder’s or proposer’s financial ability; and
c. By submitting a bid or proposal, a bidder authorizes the City to request any credit report information that the City deems necessary to investigate and evaluate whether a bidder is sufficiently financially responsible to perform the contract(s); and
d. Any action necessary to ascertain the bidder or proposer’s compliance with PCC 5.33.300.
6. The bid or proposal is nonresponsive. A nonresponsive bid or proposal, except in the case of minor informalities, is one which:
a. Omits, or is unclear as to, the price; or price cannot be determined in the bid or proposal documents;
b. Does not conform in all material respects to the solicitation document requirements including all prescribed public solicitation procedures or requirements;
c. Offers goods or services of a lesser quality or quantity than requested in the ITB or RFP;
d. Requires a delivery date different from that required in the ITB and RFP;
e. Takes exception to the specifications or terms or conditions of the ITB and RFP;
f. Is contingent upon the City’s acceptance of different or additional specifications, or conditions from those contained in the ITB and RFP; or
g. Contains a deviation which, if the bid or proposal were accepted, would give the bidder or proposer a substantial advantage or benefit not shared by other bidders or proposers to the ITB and RFP.
7. The offered work or goods fail to meet the requirements of the solicitation document.
8. The bid or proposal security has not been submitted or properly executed as required by the solicitation document; or
9. The bidder or proposer has not met the stated requirements of the City’s fair contracting and employment programs or the requirements of ORS 279.059(1) or (2) if required by the solicitation document.
10. The bidder or proposer has failed to provide EEO certification as required by PCC Chapter 3.100, and the certification required under PCC 5.33.300 D.; or
11. The bid or proposal contains material misrepresentations; or
12. The bid or proposal is contingent upon the City’s acceptance of specifications or contract terms and conditions that differ from or are in addition to those in the solicitation document or the bidder or proposer takes exception to specifications or terms or conditions, including a bid or proposal that prevents public disclosure except as permitted by applicable law; or
13. Other circumstances relevant to the particular bid or proposal, or bidder or proposer, indicate that acceptance of the bid or proposal may impair the integrity of the selection process or result in an imprudent contract by the City.
14. The contract is for a public improvement and the Construction Contractor’s Board lists the bidder or proposer as not qualified.
C. Form of Business Entity. The corporate or business form of bidders or proposers may be investigated by the City, so that previously disqualified bidders or proposers, or their officers and directors, or principal owners may not by subterfuge, change of apparent ownership, or other adjustments in formal appearance, avoid rejection of a bid or proposal, or application of the disqualification provisions of ORS 279.037 to ORS 279.045, and PCC 5.33.330.
D. Certification of Nondiscrimination. As required by ORS 279.111, the bidder or proposer shall certify and deliver to the City written certification as part of the bid or proposal that the bidder or proposer has not discriminated against minority, women or emerging business enterprises in obtaining any subcontracts.
5.33.310 Rejection of All Bids or Proposals.
A. Bid or Proposal Rejection. All bids or proposals may be rejected for good cause upon a written finding by the City it is in the public interest to do so. Notification of rejection of all bids or proposals, along with the good cause justification and finding of public interest, shall be sent to all persons who submitted a bid or proposal.
B. Rejection Criteria. Reasons for rejecting all bids or proposals include but are not limited to a written finding that:
1. Due to the content of or an error in the solicitation documents, including its terms, conditions or specifications, or the solicitation process unnecessarily restricted competition for the contract; or
2. The price, quality, or performance presented by the lowest responsive and responsible bidder or best responsive and responsible proposer is, in the opinion of the City, too costly or of insufficient quality to justify acceptance of the bid or proposal; or
3. Misconduct, error, or ambiguous or misleading provisions in the solicitation document threaten the fairness and integrity of the competitive process; or
4. Causes other than legitimate market forces threaten the integrity of the competitive 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; or
5. The City cancels the solicitation as provided by PCC 5.33.360; or
6. Any other circumstances indicating completion of the solicitation would not be in the public interest.
5.33.320 Protest of Contractor Selection, Contract Award.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. Purpose. The purpose of PCC 5.33.320 is to require adversely affected or aggrieved bidders or proposers on a City solicitation to exhaust all avenues of administrative review and relief before seeking judicial review of the City's award decision.
B. Notice of Intent to Award. 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. The City’s notice of intent to award shall be final on the later of the following:
1. Seven (7) days after the date of the notice on the website or the written posted notice, unless otherwise provided therein; or
2. When the City provides a written response to all timely filed protests that denies the protests and affirms the award; or
3. Upon conclusion of any appeal pursuant to PCC 5.33.320 E.
C. Right to Protest. Any bidder or proposer who is adversely affected or aggrieved by the notice of intent to award shall have 7 days after issuance of the notice of intent to award to submit to the Purchasing Agent a written protest of the Purchasing Agent’s decision. The period of 7 days in which to submit a written protest may be shortened or lengthened by the City, as provided in the City’s solicitation document. If no written protest is received within 7 days of issuance of the notice of intent to award, or within the time provided in the solicitation document, the protest period shall be closed. No late protest shall be accepted or heard and the contract shall be awarded as indicated by the notice of intent to award, which award shall be final. If a written protest is timely filed, the written protest shall specify the grounds upon which the protest is based. In order to be an adversely affected or aggrieved bidder or proposer with a right to submit a written protest, a bidder or proposer shall be an actual bidder or proposer for the particular contract; shall itself claim to be eligible for award of the contract as the responsible bidder submitting the lowest responsive bid, or responsible proposer submitting the best responsive proposal; and, shall be next in line for award, that is, the protester shall claim that all lower bidders or higher-scored proposers are ineligible for award: because their bids or proposals were non-responsive; or, as a result of the City committing a substantial violation of a solicitation document provision or of an applicable procurement statute or City rule, the protester was unfairly evaluated and would have, but for such substantial violation, been the lowest bidder or the highest-scored proposer. The City shall not consider a protest submitted after the time period established in PCC 5.33.320 C. or such different period as may be provided in the City’s solicitation document.
D. Authority to Resolve Protests. The Purchasing Agent shall have the authority to settle or resolve a written protest submitted in accordance with the requirements of PCC 5.33.320. The Purchasing Agent shall have the authority to extend the period of protest provided by PCC 5.33.320 B.
E. Decision. If the protest is not settled or resolved by mutual agreement of the Purchasing Agent and the adversely affected or aggrieved bidder or proposer, the Purchasing Agent shall promptly issue a written decision on the protest. The Purchasing Agent’s written decision on the protest may be appealed in writing to the City and shall be heard by the Purchasing Board of Appeal as provided by PCC 5.33.350. However, only the grounds which have been raised to Purchasing Agent in the written protest under PCC 5.33.320 C. can be appealed.
F. Notice to Successful Bidder or Proposer. The City Auditor shall notify the successful bidder or proposer no later than the next business day following award of a contract.
G. Modifications to Contract or Proposals. After an award of the contract, modifications to the contract shall be made only through written change orders or written amendments to the contract and in accordance with PCC 5.33.090 D.24.
5.33.330 Disqualification.
A. Authority. The City may disqualify a person from consideration of award of City contracts after providing notice and a reasonable opportunity to be heard as provided in PCC 5.33.330 D. and E.
B. Standards for Disqualification. As provided in ORS 279.037, the City may disqualify a person for:
1. 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.
2. 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;
3. Conviction under state or federal antitrust statutes.
4. Violation of a contract provision that is regarded by the City to be so serious as to justify disqualification. A violation of a contract provision 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 person’s failure to perform or unsatisfactory performance caused by acts beyond the person’s control is not a basis for disqualification.
C. DBE Disqualification. The City may disqualify a person as provided in ORS 200.075 or 279.111.
D. 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:
1. State that the City intends to disqualify the person;
2. Set forth the reasons for the disqualification;
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 shall be held;
5. Include a reference to the particular sections of the statutes and rules involved:
6. State the proposed disqualification period; and
7. State that the person may be represented by legal counsel.
E. Appeal. The Purchasing Agent shall have authority to resolve protests under PCC 5.33.330. If the protest is not able to be resolved by the Purchasing Agent, an adversely affected or aggrieved bidder or proposer may appeal the City’s decision only as provided by PCC 5.33.350.
F. Notice of Disqualification. Upon exhaustion of all administrative remedies, or if no appeal is filed as provided by PCC 5.33.350, the City shall notify the bidder or proposer in writing of its disqualification, personally or by registered or certified mail, return receipt requested. The notice shall contain:
1. The effective date and period of disqualification;
2. The reasons for disqualification; and
3. A statement of the bidder’s or proposer’s rights of review and applicable deadlines pursuant to ORS 279.045(5).
5.33.340 Negotiation With Bidders or Proposers.
The City shall not negotiate with bidders or proposers except as provided in ORS 279.015(1)(h) and PCC 5.33.340. All negotiation shall be undertaken only with the consent and participation of the Bureau of Purchases.
A. Invitation to Bid Project.
1. For an invitation to bid project when all responsive bids from responsible bidders exceed the City’s cost estimate, the City in accordance with ORS 279.015(1)(h) and PCC 5.33.340, may, but is not required to, negotiate with the lowest, responsive and responsible bidder prior to awarding the contract in order to solicit value engineering and other options to attempt to bring the project within the City’s cost estimate. The City shall not negotiate scope of work or other terms and conditions under an invitation to bid process.
2. In determining whether all responsive and responsible bids exceed the cost estimate, only those bids which have been formally rejected by the City in accordance with public contracting law shall be excluded from consideration.
3. Negotiation with the apparent lowest, responsive and responsible bidder shall be initiated at the City’s sole discretion.
4. Negotiations shall not result in contract award if the scope of the project is significantly changed from the original solicitation. The scope is considered to have been significantly changed if it is more likely than not that the pool of competition would have been significantly affected by the change; that is, if other bidders would have been expected to participate in the solicitation process had the change been made during the solicitation process rather than during negotiation. PCC 5.33.340 shall not prohibit resolicitation of trade subcontracts.
5. 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, shall be considered a lack of good faith.
B. Request for Proposal Project.
1. The City may permit negotiations under a request for proposal if the City intends to consider alternative terms and conditions to reduce City cost or enhance the value of product or service requested; or the City finds negotiation is required to effect a successful procurement because the specifications are complex and the City expects numerous queries as to the proper interpretation of the specification; the work requires a high level of technical or managerial competence that cannot be defined adequately in the specifications; or discussions are necessary to gauge the proposer’s understanding of complex specifications.
2. Process for Negotiating Request for Proposal Projects. Unless the City provided for negotiation in the solicitation document, the City may only negotiate the statement of work and the contract price as it is affected by negotiating the statement of work. If the solicitation document provided that negotiation may occur at the City’s discretion, the City may forego negotiations and evaluate all proposals as provided by PCC 5.33.280 F. If the City intends to negotiate terms and conditions of the contract, the City shall identify the specific terms and conditions in the solicitation document that are subject to negotiation and authorize proposers to propose certain alternative terms and conditions. The City shall describe the negotiation process in the solicitation document and shall state the competitive range. The competitive range shall be decreased if the number of proposers that submit proposals is less than the specified number, or may be increased by the City in accordance with PCC 5.33.340. The City may only negotiate with proposers in the competitive range as provided by the solicitation document. If the solicitation document does not indicate that negotiation is discretionary, or the City decides not to forego negotiation, then negotiation shall occur as provided below unless a different process is provided by the solicitation document:
a. The City shall establish a negotiation team tailored for the project. The City’s team may include legal, technical and negotiating personnel.
b. Negotiations between the City and the best, responsive and responsible proposer shall not change the material requirements of the solicitation document nor any material contractual terms and conditions. The City shall only negotiate terms and conditions expressly authorized for negotiation under the solicitation document. A proposer shall only submit alternative terms and conditions to the terms and conditions the City expressly authorized for negotiation under the solicitation document. A proposer may request a change to the solicitation document only pursuant to PCC 5.33.200 to add alternative terms and conditions for negotiation.
c. Determination of Competitive Range. The City shall evaluate all proposals in accordance with the evaluation criteria contained in the solicitation document. After evaluation of all proposals in accordance with the criteria set forth in the solicitation document, the City shall determine the proposers in the competitive range. The City may increase the competitive range if the City’s evaluation of proposals establishes a natural break in the scores of proposers indicating a number greater than the initial competitive range.
d. Notice of Competitive Range. Unless otherwise provided in the solicitation document, the City shall provide written notice to all proposers of the City’s determination of the proposers included in the competitive range. The City’s notice of the proposers included in the competitive range shall not be final until the later of the following:
(1) Five (5) days after the date of the notice, unless otherwise provided therein; or
(2) Until the City provides a written response to all timely filed protests denying the protests and affirming the notice of the proposers included in the competitive range.
e. A proposer that is not within the competitive range may protest the City’s evaluation and determination of the competitive range only as provided by PCC 5.33.340 B.2.f.
f. Right to Protest Competitive Range. Any proposer who has submitted a proposal to the City, and who is adversely affected or aggrieved by the decision to exclude the proposer from the competitive range may submit a written protest of competitive range to the City as provided by PCC 5.33.320. The proposer’s written protest shall specify the grounds upon which the protest is based. For the purposes of PCC 5.33.340 B.2.f., a proposer is adversely affected or aggrieved only if a proposer is the responsible proposer and submitted a responsive proposal and is eligible for inclusion in the competitive range, that is, the protesting proposer must claim it is eligible for inclusion in the competitive range if all ineligible higher-scoring proposers are removed from consideration, and those higher-scoring proposers are ineligible for inclusion in the competitive range because: their proposals were not responsive; or, the City committed a substantial violation of a provision in the solicitation document or of an applicable procurement statute or administrative rule, and the protesting proposer was unfairly evaluated and would have, but for such substantial violation, been included in competitive range.
g. The City shall not consider a protest submitted after the time period established by PCC 5.33.320 or such different period as may be provided in the solicitation document. A proposer shall not protest the City’s decision to not increase the competitive range beyond the competitive range set forth in the solicitation document.
h. After the protest period provided expires, or after the City has provided a final response to any protest, whichever date is later, the City may begin negotiating with proposers in the competitive range. The City’s negotiation team shall equitably consider all proposals in the competitive range. The City may only negotiate an alternative term and condition submitted by a proposer if the alternative term and condition is reasonably related to the term and condition the City authorized as negotiable.
i. The City may evaluate offers negotiated with proposers in the competitive range at any time during the negotiation process to determine if the City will:
(1) Continue negotiating with a particular proposer; or
(2) Terminate negotiations with a particular proposer; and
(3) Continue negotiating with other proposers in the competitive range; or
(4) Terminate negotiations with all remaining proposers in the competitive range.
j. The City may terminate negotiations with a proposer in the competitive range at any time. If the City does not cancel the solicitation at the conclusion of the City’s negotiation with all remaining proposers in the competitive range, the City shall score the proposals in the competitive range based upon the evaluation criteria in the request for proposals.
k. The City shall provide written notice of intent to award the contract to all proposers in the competitive range. An unsuccessful proposer may protest the City’s award only in accordance with PCC 5.33.320.
l. Nothing in PCC 5.33.340 shall restrict or prohibit the City from canceling the solicitation at any time.
C. The Purchasing Agent shall have authority to resolve protests under PCC 5.33.340 B.2.f. If the protest is not able to be resolved by the Purchasing Agent, an adversely affected or aggrieved proposer may appeal the City’s decision only as provided by PCC 5.33.350.
5.33.350 Appeals.
A. Purpose. The purpose of PCC 5.33.350 is to provide for the prompt, effective and efficient resolution of appeals and protests of adversely affected or aggrieved bidders or proposers in regard to City decisions about solicitation specifications or contract provisions as provided by PCC 5.33.200; or bidder or proposer responsibility as provided by PCC 5.33.300 B.4.; responsiveness as provided by PCC 5.33.300 B.6.; contract award as provided by PCC 5.33.320; negotiation as
provided by PCC 5.33.340, including competitive range as provided by PCC 5.33.340 B.2.f.; prequalification as provided by PCC 5.33.470; or disqualification as provided by PCC 5.33.330.
B. Board Created. Pursuant to Portland City Charter Section 2-103, City Council hereby creates the Purchasing Board of Appeals. The duties of the City Council acting as the Local Contract Review Board pursuant to ORS 279.043 and 279.045 shall be performed administratively by the Purchasing Board of Appeals and City Council hereby delegates its powers to the Purchasing Board of Appeals for those purposes. The Purchasing Board of Appeals shall hear and resolve protests and appeals arising from City decisions about solicitation specifications or contract provisions pursuant to PCC 5.33.200; bidder or proposer responsibility decisions pursuant to PCC 5.33.300 B.4; responsiveness decisions pursuant to PCC 5.33.300 B.6.; contract award pursuant to PCC 5.33.320; negotiation pursuant to PCC 5.33.340, including competitive range pursuant to PCC 5.33.340 B.2.f.; prequalifications pursuant to PCC 5.33.470; or disqualification pursuant to PCC 5.33.330.
C. Composition of Board.
1. The Purchasing Board of Appeals shall consist of three members. A quorum shall consist of three members.
2. The members of the Board shall be:
a. A representative from the public purchasing sector;
b. The City Engineer or designee;
c. A member of the general public with affiliation to the purchasing industry.
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.
4. A member of the board shall serve as chairperson.
D. Compensation. All members of the Board shall serve without pay, except that they may receive their regular salaries during time spent on Board matters.
E. Vacancies. A vacancy on the Board shall be filled as soon as possible in accordance with the procedures described above.
F. 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.
G. Staff. The Bureau of Purchases shall provide staff and appropriate assistance for the Board.
H. Powers of the Board.
1. The Board shall be responsible for reviewing the decisions of the City in regard to appeals or protests arising under PCC 5.33.200; 5.33.300.B.4.; 5.33.300 B.6.; 5.33.320; 5.33.340, including 5.33.340 B.2.f.; 5.33.470; and 5.33.330. In regard to appeals of decisions regarding prequalification or disqualification of bidders or proposers, the Board shall comply with ORS 279.043 and .045. However, only those matters which were raised with the Purchasing Agent shall be considered as grounds for appeal or protest under PCC 5.33.350.
2. An adversely affected or aggrieved bidder or proposer, who is not satisfied with a City decision that the Board is responsible for reviewing under PCC 5.33.350 H.1., may file a written request for hearing by the Board only if the bidder or proposer has fully complied with the requirements of PCC 5.33.320. Any request for hearing by the Board shall be received by the City no later than 7 days from the date of the City’s decision. The request shall be delivered to the Bureau of Purchases, Attn: Purchasing Agent and marked “Request for Hearing by the Purchasing Board of Appeals.”
3. 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.
4. Following completion of a hearing, the Board shall prepare a written decision which shall be mailed to all parties to the hearing by certified mail, return receipt requested.
I. Appeal to City Council as Local Contract Review Board.
1. A party who is not satisfied with the decision of the Board may file a written request for hearing by City Council. Any request for hearing by City Council shall be received by the City no later than 7 days from the date of 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.”
2. The request shall set forth the specific reasons for requesting a hearing by City Council. However, only those matters which were raised with the Purchasing Agent and the Purchasing Board of Appeals shall be considered as grounds for appeal to City Council under PCC 5.33.350.
3. 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 PCC Chapter 3.02 shall be the rules for any hearing on appeal.
4. The decision of City Council shall conclude a party’s administrative remedies and further redress sought by a party shall be pursuant to state law.
5.33.360 Cancellation of Solicitation.
A. Cancellation in the Public Interest. A solicitation may be canceled for good cause in whole or in part, when cancellation is in the public interest as determined by the City, at any time before the contract is executed by the City. The reasons for cancellation shall be made part of the solicitation file.
B. Notice of Cancellation. When a solicitation is canceled prior to bid or proposal opening, notice of cancellation shall be mailed or otherwise made available or furnished to all known holders of the solicitation document. Such notice of cancellation shall:
1. Identify the solicitation;
2. Briefly explain the reason for cancellation; and
3. If appropriate, explain that an opportunity shall be given to compete on any resolicitation.
5.33.370 Disposition of Bids or Proposals if Solicitation Canceled.
A. Prior to Bid or Proposal Opening. When a solicitation document is canceled prior to bid or proposal opening, all bids or proposals received shall be returned to bidders or proposers unopened, if submitted in a hard copy format with a clearly visible return address. If there is no return address on the envelope, the bid or proposal shall be opened to determine the source and then returned to the bidder or proposer.
B. After Bid or Proposal Opening. When all bids or proposals are rejected, and the City decides to cancel the solicitation, the bids or proposals received shall be retained and become part of the City’s solicitation file.
5.33.380 Documentation of Award.
A. Basis of Award. A record showing the basis for determining the successful bidder or proposer shall be made a part of the solicitation file.
B. Contents of Award Record. The record shall consist of:
1. Bids:
a. Completed bid tabulation sheet;
b. Written justification for any rejection of lower bids.
2. Proposals:
a. Completed proposal evaluations;
b. Written justification for any rejection of higher scoring proposals or for failing to meet mandatory requirements of the request for proposals.
3. If the City permitted negotiations in accordance with PCC 5.33.340, the City’s record shall include the City’s completed evaluation of the initial proposals and the City’s completed evaluation of the final proposals.
5.33.390 Availability of Award Decisions.
A. Contract Documents. Contract document(s), as applicable, shall be sent to the successful bidder or proposer for signature. The bidder or proposer shall return the executed contract document(s) and all attachments required by the solicitation document to the City for execution no later than 10 business days from the date the contract documents were sent to the successful bidder or proposer. If the contract document(s) are not returned within 10 days, at the City’s option, the contract award shall be void and the bidder or proposer’s bid or proposal security shall be forfeited to the City. A request for an extension of time may be granted by the Purchasing Agent upon a showing of good cause. The City shall execute the contract only after it has obtained all applicable required documents and approvals. After return of the contract documents and execution by the City, the City shall send a fully executed copy to the successful bidder or proposer. Unless otherwise provided by the solicitation documents, or the contract, the contract shall be effective upon execution by the City. All contracts of the City shall be filed in the City Auditor’s Office.
B. Notification to Unsuccessful Bidders or Proposers. Unsuccessful bidders or proposers generally will not be notified that a contract has been awarded. Tabulations of awarded bids or evaluation summaries of proposals may be obtained upon request and upon payment of the City’s charges.
C. Retention, Inspection and Copying of Solicitation Files. After opening, all bids and proposals and materials from the City’s solicitation shall be retained in the solicitation file.
5.33.400 Performance Security.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. Contracts other than Public Improvement Contracts. The Purchasing Agent may require performance security for contracts other than public improvement contracts. Such requirements shall be set forth in the solicitation document, and shall comply with PCC 5.33.400 B.
B. Form of performance security. The City shall accept only:
1. A performance bond and a payment bond, in an amount equal to 100 percent of the contract price, 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; or,
2. Cashier’s check or certified check in an amount equal to 100 percent of the contract price.
C. Time for Submission. The successful bidder or proposer shall furnish the required security within the time set forth in the solicitation document. If no time is set forth in the solicitation document, security shall be furnished no later than 10 days after notification by the City. Failure to furnish the bond prior to the deadline may result in rejection of the bid or proposal, forfeiture of bid or proposal security, and award to the responsible bidder with the next lowest responsive bid or responsible proposer with the next highest-scoring responsive proposal.
5.33.410 Records Maintenance; Right to Audit Records.
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. Their 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;
3. Any cost and pricing data; and,
4. Payment to suppliers and subcontractors.
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.
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 by PCC 5.33.410 or a solicitation document may result in disqualification as a bidder or proposer for future City contracts as provided in PCC 5.33.330 B.4, or may result in a finding that the contractor or subcontractor is not a responsible bidder or proposer as provided in PCC 5.33.300 B.4.
5.33.420 Right to Inspect Plant or Place of Business.
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.
4. To inspect for contract compliance.
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 acceptable. 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.
E. Conduct of Inspections and Tests:
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.
5.33.430 Contract Cancellation, Contractor Termination Procedures.
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:
1. Standard terms and conditions included in contracts;
2. Product or service specifications;
3. Delivery or completion requirements; or
4. Contracted pricing and price escalation/de-escalation clauses.
B. The City and the contractor may cancel the contract at any time by mutual written agreement.
C. Termination For Convenience.
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, nonavailability 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.
F. Termination of The Contractor's Performance for Default.
1. Declaration of Default. The City may, after giving the contractor and its surety 7 days written notice and an opportunity to cure deficient performance, terminate the contractor's performance for any reasonable cause, including but not limited to those set forth in PCC 5.33.430 F.1.a. to g. 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:
1. The effective date of the intended cancellation or termination,
2. The grounds for cancellation or termination, and
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 in PCC 5.33.430. If a contract contains a cancellation or termination clause, that clause rather than PCC 5.33.430 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 279.005 to 279.111.
5.33.440 Foreign Contractor.
A. A foreign contractor is one who is not domiciled in or registered to do business in the State of Oregon.
B. If the amount of a contract exceeds $10,000 and the contractor is a foreign contractor, as provided by PCC 5.33.440 A., the contractor shall promptly report to the Oregon Department of Revenue on forms provided by the Department of Revenue, the total contract price, terms of payment, length of contract 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 bureau for whom the work is being performed. That bureau shall satisfy itself that the above requirements have been complied with before it issues final payment on the contract.
5.33.450 Additional Rules Applicable to Public Improvement Contracts.
In addition to the requirements previously set forth in this Chapter, the following rules apply to public improvement contracts. The following rules are intended to be complementary and supplementary to the previous rules, where necessary, to meet the City's needs when letting and administering contracts for public improvements. In the event of ambiguity or the need for interpretation of a public improvement contract, the more specific requirements of the following rules for public improvement contracts take precedence over the more general requirements of the previous rules.
5.33.460 Competitive Bidding and Security for Public Improvement Contracts.
A. Public improvement contracts shall be awarded by competitive bidding except as otherwise allowed or required by state or local law or rule.
B. The City shall make every effort to construct public improvements at the least cost to the City.
C. Bid or proposal security not to exceed 10 percent of the base bid(s) or proposal(s) shall be required for public improvement contracts when the amount of the contract exceeds the formal bid threshold. The City shall state bid or proposal security requirements in the solicitation document. The City may exempt the bid or proposal security requirements of ORS 279.027 for public improvement contracts in accordance with ORS 279.033.
D. Contracts for Public Improvements Under the Formal Bid Threshold. Pursuant to ORS 279.033 the City has exempted contracts under the formal bid threshold from the performance security requirement. However, notwithstanding this exemption, performance security for a particular contract under the formal bid threshold may be required by the Purchasing Agent, but performance security shall not be used to discourage competition. The Purchasing Agent may determine whether performance security is required to protect the City’s interest and may waive or require performance security in the Purchasing Agent’s discretion.
E. Public Improvement Contracts in Excess of the Formal Bid Threshold. Except when the requirement may be waived pursuant to ORS 279.029(5), or unless a contract is exempt pursuant to ORS 279.033 and PCC 5.33.460 C., a performance security and a payment security, each in sums equal to the contract price shall be required for all public improvement contracts in excess of the formal bid threshold. A combined performance and payment security that lists only one penal sum shall nonetheless provide for payment of two penal sums.
F. The form of performance and payment security and the time for submission shall comply with PCC 5.33.400 B. and C.
G. Warranty and Maintenance Security.
1. The City may require the contractor to warrant the work and make all necessary repairs and replacements to remedy, in a manner satisfactory to the City and at no cost to the City, any and all defects, breaks, or failures of the work occurring within two (2) years following the date of acceptance of the work due to faulty or inadequate materials or workmanship; repair damage or disturbances to other improvements under, within, or adjacent to the work, whether or not caused by settling, washing, or slipping, when such damage or disturbance is caused, in whole or in part, from activities of the contractor in performing its duties and obligations under a contract when such defects or damage occur within the warranty period. The two year maintenance period required shall, with relation to such required repair, extend two years from the date of completion of such repair.
2. If the contractor, after written notice, fails within ten (10) days to proceed to comply with the terms of PCC 5.33.460 G.1., the City may have the defects corrected, and contractor and contractor’s surety shall be liable for all expenses incurred. In case of an emergency where, in the opinion of the City, delay would cause serious loss or damage, repairs may be made without notice being given to the contractor and the contractor or surety shall pay the cost of repairs. Failure of the City to act in case of an emergency shall not relieve the contractor or surety from liability for payment of all such costs.
3. As a means of providing security during the two year maintenance period, the contractor shall provide to the City a maintenance security in the amount of not less than 20 percent of the initial contract amount. The maintenance security shall be one of the following types:
a. Continuation of the contract performance and payment security at the original or a reduced amount.
b. Maintenance bond in a form and with conditions acceptable to the City.
c. Cash deposit to the City Treasury, with a treasurer’s receipt acting as proof of security.
d. An agreed “Set Aside” agreement between the contractor’s lending institution and the City, where the City controls disbursements and releases funds at the end of the maintenance period.
e. Other arrangements, as may be proposed by the contractor and accepted by the City.
4. If warranty and/or maintenance security are to be required by a particular contract, the solicitation document and the contract document shall contain provisions substantially similar to PCC 5.33.460 G.
5.33.470 Prequalification of Bidder or Proposer.
(Amended by Ordinance No 175135, effective January 1, 2001.)
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 279.039. 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. All public improvement projects and painting projects estimated to cost more than $50,000 require prequalification.
C. 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.
D. 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 PCC 5.33.470 D. 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 PCC 5.33.470.
E. Time for Filing Prequalification Applications. Prequalification applications shall be received by the Purchasing Agent at least 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 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 5.33.470 H., at least 3 business days prior to the bid or proposal opening date.
F. 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;
2. The bidder’s or proposer’s record of performance;
3. The bidder’s or proposer’s record of integrity;
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.
G. 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 upon the prequalification. 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. 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. The Purchasing Agent shall have authority to resolve protests under PCC 5.33.470.
H. 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 under PCC 5.33.470 F., and inform the bidder or proposer of the bidder’s or proposer’s right to a hearing.
I. Appeal. If the protest is not able to be resolved by the Purchasing Agent, disputes regarding disapproval, in whole or in part, revocation or restriction of a bidder’s or proposer’s prequalification shall be resolved by the City Purchasing Board of Appeals as provided by PCC 5.33.350.
J. 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. Any dispute over clarifications shall be handled as provided by PCC 5.33.470 H. and I.
5.33.480 Public Notice.
Advertising. The provisions of ORS 279.025, City Charter Section 8-105, and PCC 5.33.140 are applicable to public improvement contracts under this Chapter.
5.33.490 Bid or Proposal Evaluation and Award.
A. General. A public improvement contract, if awarded, is to be awarded to the lowest, responsive and responsible bidder or the best, responsive and responsible proposer.
B. Special Requirements. The solicitation documents shall set forth any special requirements and criteria that shall be used to determine the lowest, responsive and responsible bidder or best, responsive and responsible proposer. No bid or proposal shall be evaluated for any requirement or criterion that is not disclosed in the solicitation document or City law or rule. However, this provision shall not prohibit the City from investigating and reviewing bidders or proposers to determine if they are responsible as provided by PCC 5.33.300 B.4.
C. Bid Evaluation and Award. The evaluation format for competitive bid pricing can be lump sum, unit price or a combination of the two.
1. Lump sum. If the bid form includes a lump sum base bid, plus additive or deductive alternates, the total bid price for the purpose of comparing bids, shall be the total sum computed from adding or deducting specified alternates, as selected by the City, to the base bid. If the solicitation document requires a lump sum bid, without additive or deductive alternates, or if the City has selected no additive or deductive alternates for award, bids shall be compared on the basis of lump sum prices, or lump sum base bid prices, as applicable.
2. Unit price. If the bid includes unit prices and extensions for estimated quantities, the total bid price, for the purpose of comparing bids, shall be the total sum computed from multiplying estimated quantities by the unit prices entered on the bid form by the bidder, with due adjustments being made for additive or deductive alternates, if any, selected for award. In case of a conflict between a unit price and the corresponding extended amount, the unit price shall govern with any corrections permitted by this Chapter.
3. Combination lump sum and unit price. As provided by the solicitation document, the City may select a combination of factors for purposes of bid evaluation and contract award and use the methods described in PCC 5.33.490 C.1. and 2. to compute and compare bids.
4. The City reserves the right to reject any unbalanced bid if acceptance of such a bid would be detrimental to the City’s interest.
D. Proposal Evaluation and Award. If an alternative contracting method is authorized by the City pursuant to PCC 5.33.090 C., ORS 279.015(2) or 279.015(6) for use in procuring a public improvement, proposals shall be evaluated to determine which proposer offers the best solution to the City in accordance with the evaluation criteria set forth in the solicitation document and in the City's laws and rules. Only the evaluation criteria which are set forth in the solicitation document and in the City's laws and rules shall be applied. The evaluation criteria shall be as objective as possible, but subjective criteria may be included. Examples of applicable criteria appear at PCC 5.33.280 F. Evaluation criteria need not be precise predictors of actual future costs and performance; but, to the extent possible, such evaluation criteria shall:
1. Be reasonable estimates based on information available to the City;
2. Treat all proposals equitably;
3. Recognize that public policy requires acquisitions and public improvements to be accomplished at the least cost.
E. Restrictions. Nothing in PCC 5.33.490 shall be deemed to permit contract award to a bidder or proposer offering a higher quality solution than that required in the solicitation document if such bidder or proposer is not also the lowest, responsive and responsible bidder or the best, responsive and responsible proposer as determined under this Chapter.
F. The City may reject a bidder or proposer for a public improvement contract as not responsible if the Construction Contractor’s Board lists the bidder or proposer as not qualified.
G. Eligibility to Bid or Propose on Construction or Landscape Contracts.
1. Construction Contracts. The City shall not consider a bidder’s or proposer’s bid or proposal to do work as a contractor as defined in ORS 701.005(2), unless the bidder or proposer has a current, valid certificate of registration issued by the Construction Contractors Board.
2. Landscape Contracts. The City shall not consider a bidder’s or proposer’s bid or proposal to do work as a landscape contractor as defined in ORS 671.520(2), unless the bidder or proposer has a current, valid landscape contractors license issued pursuant to ORS 671.560 by the State Landscape Contractors Board.
3. Subcontractors. A bidder or proposer may comply with the requirements of PCC 5.33.490 G.1. and 2. if the bid or proposal provided for registered or licensed, specified subcontractors who shall perform the work for which the registrations or licenses are required.
4. Noncompliance. A bid or proposal received from a bidder or proposer that fails to comply with PCC 5.33.490 C. shall be nonresponsive and the City shall reject the bid or proposal, unless contrary to federal law.
5.33.500 Retainage.
A. Retainage of 5 Percent. The amount to be retained from any given progress payment shall not exceed 5 percent of the payment. If the contract work is 50 percent completed and the work is progressing satisfactorily, the City may, at its discretion, reduce or eliminate the retainage on the remaining progress payments. Any reduction or elimination of retainage shall be allowed only upon written application of the contractor, which application shall include written approval of the contractor’ surety; except that when the contract work is 97.5 percent completed, the City may, at its discretion and without application by the contractor, reduce the retained amount to 100 percent of the value of the contract work remaining to be done. Upon receipt of a written application by the contractor, the City shall respond in writing within a reasonable time. If retainage has been reduced or eliminated, the City reserves the right in protecting its interests to reinstate at any time retainage from further progress payments.
B. Alternatives to Cash Retainage. In lieu of cash retainage to be held by the City, the contractor may select one of the following options:
1. Deposit of Securities:
a. The contractor may deposit bonds or securities as set forth in PCC 5.33.500 B.1.b. with the City or in any bank or trust company to be held for the benefit of the City. In such event, the City shall reduce the retainage in an amount equal to the value of the bonds and securities. This reduction in retainage shall be made in the progress payments made subsequent to the time the contractor deposits the bonds and securities;
b. The value of the bonds and securities shall be determined periodically by the City, in the manner described in PCC 5.33.500 B.1.c., and the amount retained on progress payments shall be adjusted accordingly. The bonds and securities deposited by the contractor shall be fully assigned to the City or be payable to the City on demand and shall be of a character approved by the City Treasurer and in a form approved by the City Attorney including but not limited to the following:
(1) Bills, certificates, notes or bonds of the United States;
(2) Other obligations of the United States or its agencies;
(3) Obligations of any corporation wholly owned by the federal government;
(4) Indebtedness of the Federal National Mortgage Association;
(5) Mature certificates of deposit or savings account passbooks issued by a commercial bank, savings and loan association, or mutual savings bank, duly authorized to do business in Oregon;
(6) Corporation bonds rated A or better by a recognized rating service;
(7) General obligation bonds of the State of Oregon or any political subdivision thereof;
(8) Irrevocable letters of credit from a bank doing business in Oregon.
c. The value of bonds and securities deposited by the contractor shall be calculated as follows:
(1) As to bonds or securities for which the “bid” and “asked” prices are published on a regular basis in the Wall Street Journal or in the New York Times, the value shall be the average of the “bid” and “asked” prices for the bonds or securities so published on (or most recently prior to) the date value is determined;
(2) As to bonds or securities for which the “bid” and “asked” prices are not published in the Wall Street Journal or the New York Times, the value shall be either: the average “bid” price for the bond or security, on the date value is determined, as established by any two nationally recognized government securities dealers (selected by the City in its sole discretion) making a market in such investments; or, the “bid” price published by a nationally recognized pricing service;
(3) As to certificates of deposit and bankers acceptances, the value shall be the face amount thereof, plus accrued interest.
d. At the time the City determines that all requirements for the protection of the City’s interest have been fulfilled, all bonds and securities deposited as above provided shall be released to the contractor.
2. Execution of Escrow Agreement. The Purchasing Agent is authorized to execute any escrow agreement necessary to safeguard deposit of securities with the City subject to approval as to form by the City Attorney.
3. Deposit in Interest-Bearing Accounts. Upon written request of the contractor, the City shall deposit any amounts withheld as retainage in an interest-bearing account in a bank, savings bank, trust company or savings association for the benefit of the City. Earnings on such account shall accrue to the contractor but the interest shall remain in the account until the City authorizes its release. The account shall be established through the City Treasurer;
4. Deposit of Surety Bond. The City may, at its discretion, allow the contractor to deposit a surety bond in a form acceptable to the City Attorney in lieu of all or a portion of funds retained, or to be retained. The contractor shall accept like bonds from subcontractors and suppliers when the City allows surety bonds for retainage.
5. Recovery of Costs. If the City incurs additional costs as a result of the exercise of any of the options for retainage, the City may recover such costs from the contractor by reduction of the final payment. As work on the contract progresses, the City shall, upon request, inform the contractor of all accrued costs.
5.33.510 Progress Payments.
A. Request for Progress Payments. If and as required by the contract, at regular times each month the contractor shall submit to the City a request for payment based upon an estimate of the amount of work completed and of the value of such completed work. This request may also include, at the City's discretion, an estimate of the amount of value of acceptable material to be incorporated in the completed work which has been delivered and acceptably stored. Upon verification and approval by the City, the sum of these values shall be referred to as the “value of completed work.” With these estimates as a base, the City shall make a progress payment to the contractor, which shall be equal to:
1. The value of completed work;
2. Less those amounts which have been previously paid;
3. Less other amounts that may be deductible or owing and due to the City for any cause; and
4. Less the appropriate amount of retainage.
B. Progress Payments Do Not Mean Acceptance of Work. Progress payments shall not be construed as an acceptance or approval of any part of the work and shall not relieve the contractor of responsibility for defective workmanship or material.
C. Estimates for Progress Payments. The estimates upon which progress payments are based are not represented to be accurate estimates, and all quantities shown therein are subject to correction in the final payment. If the contractor uses such estimates as a basis for making payments to subcontractors, this is at the contractor’s risk, and the contractor shall bear all loss that may result.
D. In the case of any conflict, the provisions of City contract documents regarding retainage and the time when payments are made shall prevail over the provisions of PCC 5.33.510.
5.33.520 Final Inspection.
A. Notification of Completion. When the contractor determines that all construction work on the project has been completed, the contractor shall notify the City in writing. Within 15 days of receiving the contractor's notice, the City shall make an inspection of the project and project records. If, at such inspection, all construction provided for and ordered under the contract is complete and satisfactory to the City, and all certifications, bills, forms and documents have been submitted properly, such inspection shall constitute the final inspection.
B. Instructions to Complete the Work. If, however, at any inspection, the City finds that any work, in whole or in part, is unsatisfactory, or finds that all certifications, bills, forms and documents have not been submitted properly, the City shall, within 15 days of receiving contractor's notice, provide instructions to the contractor on outstanding requirements to complete the project. When the contractor determines that it has fully complied with, and executed the instructions, the contractor shall notify the City in writing. The City shall make another inspection within 15 days after such notice, or another determination whether all certifications, bills, forms and documents have been submitted properly, and this inspection or determination, as the case may be, shall constitute the final inspection or determination, provided construction work has been completed satisfactorily or all required documentation properly submitted. If the work or all documentation has not been completed satisfactorily, this procedure shall be repeated (within 15 days after the City receives a second, or succeeding, completion notice from the contractor) until it has been completed satisfactorily.
C. Acknowledgment of Acceptance. When the City finds that all work and all documentation required under the contract have been completed satisfactorily, the City shall acknowledge acceptance of the work by providing the contractor with written notice of acceptance within 15 days after receiving the contractor's completion notice, as applicable.
D. In the case of conflict, the provisions of City contract documents regarding final inspection shall prevail over the provisions of PCC 5.33.520.
5.33.530 Final Estimate and Final Payment.
A. Submission of Final Estimate. As soon as practicable after final inspection of the work under the contract, if unit prices were applicable, the City shall prepare a final estimate of the quantities of the various classes of work performed. Following a determination of the total amount due the contractor and following final acceptance of the work by the City, as provided by PCC 5.33.520, and after verification of contractor’s compliance with State law, final payment shall be made to the contractor.
B. Set-off of Prior Payments. All prior partial estimates and payments shall be subject to correction in the final estimate and payment.
C. Interest. The City shall pay interest to the contractor in the final payment if required by state law.
D. In the case of conflict, the provisions of City contract documents regarding final estimates and final payment shall prevail over the provisions of PCC 5.33.530.
5.33.540 Claims For Unpaid Labor or Supplies.
A. Right of Action. As provided in ORS 279.526, any person claiming to have supplied labor or materials for work on a public improvement contract for which the person has not been paid by the prime contractor or any subcontractor, has a right of action on the contractor’s bond. This right arises if the person has not been paid in full and has given written notice of a claim, pursuant to ORS 279.528, within 120 days of last providing labor or furnishing materials, or within 150 days of providing labor or furnishing materials if the claim is for a required contribution to a fund of any employee benefit plan.
B. Notice of Claim.
1. To initiate a claim against the contractor’s bond, a person shall file a notice of claim substantially similar to the form and in the manner prescribed by ORS 279.528. The notice of claim shall be given to the contractor and the City Auditor. The form of the notice of claim and the name of the bonding company may be obtained from the City Auditor.
2. Any notice of claim shall include at a minimum the following information:
a. Name and address of the claimant;
b Name of prime contractor;
c. Title of project and contract date;
d. Notation that the claim is against the City;
e. Name of bonding company;
f. Name of contractor or subcontractor to whom labor or material supplied.
C. Response to Notice of Claim. Upon receipt of a notice of claim, the City shall:
1. Send acknowledgment to claimant;
2. Send a copy of the notice of claim to the prime contractor;
3. Send a copy of the notice of claim to the bonding (surety) company.
D. Referral to Surety Company. If the contract has been completed and all funds disbursed to the prime contractor, all claims shall be referred to the surety company for resolution. The City shall not make or arrange for second payments directly to subcontractors or suppliers for work already paid for by the City.
E. Discretionary Payment of Claim. If the contract has not been completed and funds are available, the City may, in accordance with ORS 279.314, pay a valid claim to the person furnishing the labor or services and charge the amount of the payment against funds due or to become due to the contractor under the contract.
F. Liability for Claim. If the City chooses to make a payment as provided in ORS 279.314, the contractor or the contractor’s surety shall not be relieved from obligation with respect to any unpaid claims.
5.33.550 Fair Contracting and Employment Programs.
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 persons desiring to enter into contracts with the City are aware of their requirements.
5.33.560 Alternative Contracting Methods for Public Improvement Contracts.
(Amended by Ordinance No. 175135, effective January 1, 2001.)
A. Purpose. PCC 5.33.560 is intended to provide guidance regarding the use of alternative contracting methods for public improvement contracts. Those methods include, but are not limited to Design/Build and CM/GC forms of contracting.
B. Use of Alternative Contracting Methods.
1. Competitive Bidding Exemptions. ORS Chapter 279 requires a competitive bidding process for public improvement contracts unless a statutory exception or exclusion applies, a class of contracts has been exempted, excepted or excluded, or an individual contract has been specifically exempted in accordance with ORS 279.015 and any applicable City rules. Alternative contracting methods require a specific exemption to customary competitive bidding practices and their use must be justified in accordance with public contracting laws and this Chapter.
2. Findings.
a. When findings are required under ORS 279.015(2) to exempt a contract or class of contracts from competitive bidding requirements, the cost savings factor at ORS 279.015(2)(b) requires consideration of the type, cost, amount of the contract, number of persons available to bid or propose and such other factors as may be deemed appropriate.
b. Likewise, the statutory definition of findings at ORS 279.011(5) means the justification for a City conclusion that includes, but is not limited to, information regarding:
(1) Operational, budget and financial data;
(2) Public benefits;
(3) Value engineering;
(4) Specialized expertise required;
(5) Public Safety;
(6) Market conditions;
(7) Technical complexity;
(8) Funding sources.
c. Accordingly, when the contract or class of contracts under consideration for an exemption contemplates the use of alternative contracting methods, the cost savings requirement may be addressed by a combination of:
(1) Specified findings which address the factors and other information specifically identified by statute; and,
(2) Additional findings which address industry practices, surveys, trends, past experiences, evaluations of completed projects required by ORS 279.103 and related information regarding the expected benefits and drawbacks of particular alternative contracting methods. To the extent practicable, such findings should relate back to the specific characteristics of the project or projects at issue in the exemption request.
d. The factors at ORS 279.015(2)(a) that it is unlikely that the exemption will encourage favoritism or substantially diminish competition are more easily addressed in contemplating the use of alternative contracting methods since the findings may specify the manner in which request for proposals will be utilized, that the procurement will be formally advertised, competition will be obtained through competitive negotiation, and award made based upon identified evaluation criteria.
e. Findings to support use of an alternative contracting process shall be made and approved by City Council at the time the ordinance authorizing contract award and execution is heard by City Council. The City shall comply with ORS 279.015(3) in making its draft findings available to the public 14 days before hearing by City Council. Findings shall comply with the requirements of ORS Chapter 279.
3. Contract Requirements. Contractual requirements shall be stated clearly in the solicitation document. The contract shall describe the methods by which the CM/GC or Design/Build firm shall competitively select other contractors and subcontractors to perform the work of the public improvement. Further, the contract shall describe completely the methods by which the CM/GC or the Design/Build firm and its affiliated or subsidiary entities, if any, may compete to perform the work of the public improvement; such methods shall include, at a minimum, public opening of sealed bids at a preannounced time and place.
4. Post-Project Evaluation. ORS 279.103 requires that the City prepare a formal post-project evaluation of public improvement projects in excess of $100,000 for which the competitive bidding process was not used. The purpose of this evaluation is to determine whether it was actually in the City’s best interest to use an alternative contracting method. The evaluation shall be prepared by the bureau for whom the work is to be performed and delivered to the Local Contract Review Board within 30 days of the date the City accepts the public improvement project, which event shall be defined in the contract documents. In the absence of such definition, acceptance of the project occurs on the latter of the date of final payment or the date of final completion of the work. ORS 279.103 describes the timing and content of this evaluation, with three required elements:
a. Financial information, consisting of cost estimates, any guaranteed maximum price, changes and actual costs.
b. A narrative description of successes and failures during design, engineering and construction.
c. An objective assessment of the use of the alternative contracting method as compared to the exemption findings.
5. Pricing Mechanisms.
a. A firm fixed price (lump sum) contract may be used as in the case of competitive bidding, if evaluation criteria other than price are to be considered in contract award. Alternatively, a cost reimbursement contract may be negotiated (that is, a cost plus fixed fee contract in which additional costs beyond those estimated are reimbursable while the fee does not increase for the original work scope).
b. Economic incentives or disincentives may be included to reflect stated City purposes related to time of completion, safety or other public contracting objectives including total least cost mechanisms such as life cycle costing.
c. A guaranteed maximum price may be used as the pricing mechanism for CM/GC or Design/Build contracts where a total contract price is provided early in the design phase in order to assist the City in determining whether the project scope is within the City’s budget, and allowing for design changes during preliminary design rather than after final design work has been completed. If this collaborative process is successful, the contractor shall propose a final GMP, which may be accepted by the City and included within the contract.
(1) In CM/GC, unless otherwise directed by the City, the pricing mechanism shall be a cost plus fixed fee contract with a GMP.
(2) In Design/Build, unless otherwise directed by the City, the pricing mechanism shall be a lump sum contract with GMP.
d. If this collaborative process is not successful, and no mutually agreeable resolution on GMP can be achieved with the contractor, the City shall terminate the contract with the contractor, as provided in the contract documents. The City may then proceed to negotiate a new contract and GMP with the proposer that was next ranked in the original selection process, or employ other suitable means for continuing the project as provided by ORS Chapter 279.
e. When cost reimbursement contracts are utilized, regardless of whether a GMP is included, the City shall provide for audit control which will effectively verify rates and ensure that costs are reasonable, allowable and properly allocated.
6. Competitive Negotiation, Generally. The City may utilize competitive negotiation, in which proposal evaluation and award follow established rules for an RFP process, allowing flexibility in both proposal evaluation and contract negotiation in alternative contracting for public improvements only in accordance with state law and PCC 5.33.280 F and 5.33.340.
a. Additional Evaluation Criteria.
(1) In negotiated construction contracting where the only reason for an RFP is to consider evaluation criteria in addition to price, the evaluation criteria may consist of firm and personnel qualifications and experience on similar projects, adequacy of equipment and physical plant, quality of products or services, sources of supply, availability of key personnel, financial capacity, including management, performance history on other public and private contracts, safety records, project understanding, proposed methods of construction, proposed milestone dates, references, service and related matters which affect cost or quality or other evaluation criteria specifically provided in the solicitation document.
(2) In CM/GC contracting, in addition to the evaluation criteria listed in PCC 5.33.560 B.6.a.(1), the evaluation criteria may also include the ability to respond to the technical complexity or unique character of the project, coordination of multiple disciplines, the time required to commence and complete the improvement, and related matters which affect cost or quality or other evaluation criteria specifically provided in the solicitation document.
(3) In Design/Build contracting, in addition to the evaluation factors listed in PCC 5.33.560 B.6.a.(1) and (2), the evaluation factors may also include design professional qualifications, specialized experience, preliminary design submittals, technical merit, design/build team experience and related matters which affect cost or quality or other evaluation criteria specifically provided in the solicitation document.
b. Contract Negotiations. Contract terms may be negotiated to the extent allowed by the solicitation document and City law and rules, provided that the general work scope remains the same and the field of competition does not change as a result of material changes to the requirements stated in the solicitation document. Terms which may be negotiated are details of contract performance, methods of construction, timing, assignment of risk in specified areas, fee and other matters which effect cost or quality.
7. Design/Build.
a. General. The Design/Build form of contracting, has technical complexities which are not readily apparent. The City shall only utilize this contracting method with the assistance of knowledgeable staff and/or consultants who are experienced in its use. In order to utilize the Design/Build process the City must be able to reasonably anticipate the following benefits:
(1) Obtaining, through a Design/Build team, engineering design, plan preparation, value engineering, construction engineering, construction, quality control, and required documentation as fully integrated functions,
(2) Integrating value engineering suggestions into the design phase, as the construction contractor joins the project team early with design responsibilities under a team approach, with the potential of reducing contract changes,
(3) Reducing the risk of design flaws, misunderstandings and conflicts inherent in construction contractors building from designs in which they have had no opportunity for input, with the potential of reducing contract claims.
(4) Shortening project time as construction activity (early submittals, mobilization, subcontracting and advance work) commences prior to completion of a biddable design, or where a design solution is still required (as in complex or phased projects).
(5) Obtaining innovative design solutions through the collaboration of the contractor and design team, which would not otherwise be possible if the contractor had not been selected.
b. Authority. The City may utilize the Design/Build form of contracting only in accordance with the requirements of PCC 5.33.560.
c. Selection. Design/Build selection shall be based on the evaluation criteria set forth in PCC 5.33.560 B.6.a.(3).
d. Licensing. If the Design/Build contractor is not a licensed or registered design professional, and the Design/Build process contemplates that state licensing and registration requirements related to architectural and engineering services may be fulfilled by design professionals at the time of entering into subcontracts, Design/Build contractors are not required to fulfill design licensing or registration requirements at the time of submitting proposals. In order to clearly establish that relationship the contract shall:
(1) Delineate services to be provided by the Design/Build contractor from those services to be obtained through design professionals,
(2) Separate the method and/or amount of compensation to be provided to design professionals from that to be provided to the Design/Build contractor, and
(3) Specifically identify the licensed design professionals by individual or firm names.
e. Contract Requirements. The City shall conform its Design/Build contracting practices to the following requirements:
(1) Design Services. The level or type of design services required shall be clearly defined within the solicitation and contract documents, along with a description of the level or type of design services previously performed for the project. The services to be performed shall be clearly delineated as either design specifications or performance standards, and performance measurements must be identified.
(2) Professional Liability. The contract documents shall clearly identify the liability of design professionals with respect to the Design/Build contractor and/or owner, as well as requirements for professional liability insurance.
(3) Risk Allocation. The contract documents shall clearly identify the extent to which the City requires an express indemnification from the Design/Build contractor for any failure to perform, including professional errors and omissions, design warranties, construction operations and faulty work claims.
(4) Warranties. The contract documents shall clearly identify any express warranties to be made to the City on characteristics or capabilities of the completed project (regardless of whether errors occur as the result of improper design, construction or both), including any warranty that a design will be produced which meets the stated project performance and budget guidelines.
(5) Privity of Contract. The contract documents shall clearly identify any third party beneficiary arrangements by which privity of contract may be established between the City and design professional when the design professional is not otherwise under contract directly with the City.
(6) Incentives. The contract documents shall clearly identify any economic incentives and/or disincentives, the specific criteria which apply and their relationship to other financial elements of the contract.
(7) Honoraria. If provided for in the request for proposals, honoraria or stipends may be provided for early design submittals from qualified finalists.
8. Construction Manager/General Contractor (CM/GC).
a. General. The CM/GC form of contracting is a technically complex project delivery system. The City shall only utilize this contracting method with the assistance of knowledgeable staff and/or consultants who have a demonstrated capability of managing the CM/GC process in the necessary disciplines of engineering, construction scheduling and cost control, accounting, legal, public contracting and project management. In order to utilize the CM/GC method the City must reasonably anticipate that use of the process shall:
(1) Successfully result in a collaborative or team effort between the City, project designers and the general contractor (who is required to be particularly suited to a project and involved early in the development process); and,
(2) Be particularly advantageous due to the complexity of the project (such as work involving occupied structures, unusual coordination or technical complexities), projects with accelerated schedules, multimillion dollar projects, historic renovations and other uncertainties.
b. Authority. The City may utilize the CM/GC form of contracting only in accordance with the requirements of PCC 5.33.560.
c. Selection. CM/GC selection shall be based on the evaluation criteria set forth in PCC 5.33.560 B.6.a.(2).
d. Basis for Payment. The CM/GC process adds specified construction manager services to traditional general contractor services, requiring full contract performance within a negotiated GMP. The basis for payment is reimbursable direct costs as
defined under the contract, plus a fee constituting full payment for work and services rendered, which together shall not exceed the GMP.
e. Contract Requirements. The City shall conform its CM/GC contracting practices to the following requirements:
(1) Setting the GMP. The GMP shall be set at an identified time consistent with industry practice and shall define with particularity both what is included and excluded from the GMP. A set of drawings and specifications shall be produced establishing the GMP scope.
(2) Adjustments to the GMP. The contract documents shall clearly identify the standards or factors under which changes or additional work shall be considered outside of the work scope to warrant an increase in the GMP, as well as criteria for decreasing the GMP. The GMP shall not be increased without a concomitant increase to the scope defined at the time the GMP was established.
(3) Cost Savings. The contract documents shall clearly identify the disposition of any cost savings resulting from completion of the work below the GMP; that is, under what circumstances, if any, the CM/GC might share in those cost savings, or whether they accrue only to the City’s benefit. Unless there is a clearly articulated reason for sharing the cost savings, the cost savings shall accrue to the City.
(4) Cost Reimbursement. The contract documents shall clearly identify what items or categories of items are eligible for cost reimbursement with the GMP, including any category of general conditions (a general grouping of direct costs which are not separately invoiced, subcontracted or included within either overhead or fee), and may also incorporate a mutually agreeable cost reimbursement standard.
(5) Audit. Cost reimbursements shall be made subject to final audit adjustment, and the contract documents shall establish an audit process to ensure that contract costs are allowable, properly allocated and reasonable.
(6) Fee. Compensation for the CM/GC’s services shall be paid on the basis of a fee which is inclusive of profit, overhead and all other indirect or non-reimbursable costs. The fee, first expressed as a proposed percentage of all reimbursable costs, shall be identified during and become an element of the selection process. It shall subsequently be expressed as a fixed amount when reimbursable costs are established within the GMP.
(7) Incentives. The contract documents shall clearly identify any economic incentives, the specific criteria which apply and their relationship to other financial elements of the contract (including the GMP).
(8) Controlled Insurance Programs. For projects anticipated to exceed $75 million, the contract documents shall clearly identify whether a City controlled or contractor controlled insurance program is anticipated or allowable. If so, those documents shall clearly identify:
(a) Anticipated cost savings from reduced premiums, claims reductions and other factors,
(b) The allocation of cost savings, and
(c) Safety responsibilities and/or incentives.
(9) Subcontractor Selection. The contract documents shall clearly describe the methods by which the CM/GC shall publicly receive, open and record sealed bids or price quotations, and competitively select subcontractors to perform the contract work based upon price, as well as the mechanisms by which the City may waive those requirements. The documents shall also describe completely the methods by which the CM/GC and its affiliated or subsidiary entities may compete to perform the work, including, at a minimum, advance notice to the public of the CM/GC’s intent to compete and a public opening of bids or price quotations by an independent party.
(10) Subcontractor Approvals and Protests. The contract documents shall clearly establish whether the City is required to approve subcontract awards, and to what extent, if any, the City shall resolve procurement protests of subcontractors and suppliers. The related procedures and reporting mechanisms shall be established with certainty, including whether the CM/GC acts as the City’s agent in this process and whether the CM/GC’s subcontracting records are considered to be public records. In any event, the City shall retain the right to monitor the subcontracting process in order to protect the City’s interests.
Chapter 5.36
PROPERTY CONTROL
Sections:
5.36.001 Policy.
5.36.010 Surplus Personal Property.
5.36.011 Donations of Surplus Personal Property.
5.36.015 Disposition of Unclaimed Property.
5.36.020 Sale of Buildings for Removal from City Property.
5.25.025 Purchase and Resale by the City of Tax-Foreclosed Property.
5.36.030 Loans of Personal Property Owned by City.
5.36.035 Lost or Stolen City Property.
5.36.040 Parking Meter Fund Equipment.
5.36.050 Use of City Automobiles for Transporting Firing Squads.
5.36.060 Use of Water Bureau Property by Bureau of Shops.
5.36.070 Equipment Pool Rotary Account.
5.36.080 Zoological Specimens.
5.36.090 Gifts and Loans of Property.
5.36.100 Use of City Property for Elections.
5.36.110 Use of City Property for Air Quality Measuring Stations.
5.36.115 Designation of “Persons In Charge.”
5.36.001 Policy.
(Added by Ord. No. 167825, June 22, 1994.)
A. It is the policy of the City to dispose of surplus and unclaimed tangible personal property in the most efficient and cost-effective manner possible. the City Council has determined that the public interest may best be served by utilizing a contractor to dispose of surplus and unclaimed property for the City. The Bureau of Police shall be the City bureau designated to administer the contract for disposition of surplus and unclaimed property.
5.36.010 Surplus Personal Property.
(Amended by Ord. No. 155018 and 167825; June 22, 1994.)
A. Usable Property: Whenever a bureau director determines that tangible personal property in the bureau under his or her control is surplus to the needs of the bureau, he or she shall transfer the surplus personal property to the City’s surplus property disposal contractor. Any and all revenue received from sale of surplus property by the City’s surplus property disposal contractor shall be credited to the bureau from which the property originated.
B. Transfers: A bureau director may transfer surplus property under his or her control to any bureau of the City upon written request from the director of any other bureau. The value of transferred property shall be determined by the bureau director involved in the transfer.
C. Unusable Property: A bureau director may dispose of surplus property under his or her control, in any manner deemed appropriate in his or her discretion if the bureau director determines that the surplus property is unusable, inoperable and not reasonably repairable, hazardous, or, the value of the property if sold will be insufficient to cover the costs of transfer of the surplus property to the City’s surplus property disposal contractor
D. Personal property of historical value: Personal property of historical value owned by the City shall be disposed of only upon authorization by City Council.
E. Vehicles and communications equipment: City-owned vehicles and vehicular equipment and communications equipment are exempt from the requirements of this Section. If a bureau director determines that city-owned vehicles or vehicular equipment or communications equipment under his or her control are surplus, the bureau director shall report his surplus to the Director of the Bureau of General Services who shall dispose of the vehicles, vehicular equipment and communications equipment in the manner determined by the Director of the Bureau of General Services to be the most efficient and cost-effective, including: competitive written bid in accordance with ORS 279.025; public auction;
negotiated sale; or, exchange. Any and all revenue, less costs of sale, received from the sale of City-owned vehicles or vehicular equipment and communications equipment shall be credited to the replacement account for the originating bureau.
F. Firearms and narcotics are exempt from the provisions of this Chapter and shall be disposed of as otherwise provided by this Code or City policy or procedure.
5.36.011 Donations of Surplus Personal Property.
(Added by Ord. No. 167825, June 22, 1994.)
A. Policy: The City receives requests for donations of surplus personal property to various organizations, agencies and individuals. Historically, the City has limited donations of surplus personal property since revenues from surplus personal property were returned to the City. However, the City has determined that to further City policy and goals, it may be in the public interest to donate surplus personal property to appropriate recipients upon their written request.
B. Upon written request, the City may donate surplus tangible personal property to other public agencies; to recognized private non-profit organizations; or, to individuals, subject to the following conditions:
1. If the property has a current market value of $2,500 or less, the Commission In Charge of the bureau which controls the property determines and documents that:
a. The property is not needed by the City but may be used for other public purposes by the recipient; and
b. Donation of the property is in the public interest. Public interest is defined as benefitting the public in the areas of social, educational, cultural and health activities.
2. If the property has a current market value of more than $2,500, the City Council determines and documents that:
a. The property is not needed by the City but may be used for other public purposes by the recipient; and,
b. Donation of the property is in the public interest. Public interest is defined as benefitting the public in the areas of social, educational, cultural and health activities.
C. The following types of surplus property may not be donated:
1. Contraband.
2. Firearms.
3. Intangibles.
4. Hazardous items.
5. Items of historical significance, regardless of market value, unless approved by City Council.
6. Any other item deemed inappropriate for donation by the Commissioner In Charge of the bureau which controls the property.
D. The City shall provide the recipient of donated property with appropriate documentation transferring ownership of the property to the recipient. The recipient shall agree to hold harmless, defend and indemnify the City of Portland, its officers, agents and employees from any claims, demands, actions and suits (including attorney fees) arising from donation of the surplus property.
E. The Commissioner In Charge shall prepare and file with the City Auditor an annual report of all items donated by bureaus under his or her control during each fiscal year. The report shall contain:
1. A statement of the public purpose of the donation; and,
2. The name of the recipient of the surplus property; and,
3. The originating bureau; and,
4. A description of the surplus property donated; and,
5. The estimated market value of the surplus property at the time of donation.
5.36.015 Disposition of Unclaimed and Found Personal Property.
(Added by Ord. No. 153293 and 167825; June 22, 1994.)
A. Unclaimed Property: Unless directed otherwise by State law or a specific provision of this Code, all tangible personal property not owned by the City, that is under the control of a bureau and not reclaimed after notice has been sent, by the bureau in possession, to all parties who reasonably appear to have an interest in such property, of their right to claim such property within a specified period of time, shall become the property of the City, designated as surplus property, and, shall be disposed of as provided by this Chapter.
B. Found Property: All tangible personal property not owned by the City that is found by a bureau member and turned into the bureau, shall not become the property of the City until the requirements of the state law regarding the rights and duties of finders and owners of lost property are satisfied. After the requirements of State law are satisfied, found property shall be retained by the bureau which found it if the property is usable by the bureau. If the property is not usable by the bureau which found it, the bureau shall dispose of the property as surplus property as provided by this Chapter.
5.36.020 Sale of Buildings for Removal from City Property.
Whenever a Commissioner determines that a building or other structure assigned to a bureau under his control must be removed, he may authorize the Purchasing Agent to sell such building or other structure for removal by the purchaser. The Purchasing Agent shall use the method of sale which he finds most in the public interest. The Purchasing Agent shall specify terms and conditions of sale, except that such terms shall not include credit, and he shall fix the amount of bond or cash deposit to be given by the purchaser to guarantee removal of the building or structure and clearance of debris from the premises.
5.36.025 Purchase and Resale by the City of Tax-Foreclosed Property.
(Added by Ord. No. 162023, effective June 15, 1989.)
A. The provisions of this Section apply to property which meets each of the following conditions:
1. Property that has outstanding City liens;
2. Property that has been foreclosed by a county for collection of delinquent taxes; and
3. Property that has been purchased by a bidder at a county sheriff’s sale.
B. The Bureau of General Services may purchase and sell property described in 5.35.025(a) without public notice or sale provided:
1. The Council adopts an ordinance authorizing the Bureau of General Services to purchase property. The ordinance shall include a legal property description; the total amount of outstanding taxes and costs; the total amount of outstanding city liens, accrued interest, penalties and costs; and the source of funds to be used to purchase the property;
2. Property will be sold to the successful bidder at a county sheriff’s sale; and
3. The Council adopts an ordinance authorizing the property sale and setting forth sale terms. The ordinance shall include the name and address of the successful bidder at the county sheriff’s sale and the terms of the City sale. The Council may adopt sale terms and provisions as a part of the ordinance authorizing the purchase of property.
C. Sale contracts and other legal documents related to the sale shall be reviewed and approved by the City Attorney prior to the sale. Upon approval as to form by the City Attorney, the Mayor and City Auditor shall be authorized to sign a deed transferring title to the property.
D. Proceeds from the sale shall be deposited in the City fund which incurred the expense of purchasing the property from the county unless otherwise directed by the Council in the ordinance authorizing the purchase and sale of the property.
E. The Bureau of General Services is authorized to adopt administrative rules and procedures necessary to carry out the provisions of this Section.
5.36.030 Loans of Personal Property Owned by the City.
Each Commissioner and each officer or employee of the City is and shall be hereby prohibited from loaning any personal property owned by the City to any other person either gratuitously or for a consideration, without the consent of the Council expressed by ordinance. However, in the event of extraordinary circumstances involving hazard to the general public occasioned by fire, flood, earthquake, or other public disaster, the Commissioner of any department may permit equipment in his department to be used without the consent of the Council during such extraordinary circumstances upon the written order of the Commissioner; provided that the Chief of the Bureau of Fire may lend or rent to the owner or operator of property damaged by fire, flood, earthquake or other public disaster such equipment of the Bureau of Fire as may be temporarily needed to prevent further damage to such property, and such owner or operator so borrowing or renting such equipment, shall agree with the City:
A. To hold the City, its officers, agents and employees harmless for any loss or damage caused to the person or property of third persons while such equipment is in the possession of such owner or operator;
B. To waive any claim for damage to the person or property of such owner or operator arising in whole or in part from the use of such equipment; and
C. To return such equipment to the Bureau of Fire in as good condition as when received, reasonable wear and tear excepted. Such agreement shall be in writing on forms approved by the City Attorney and shall be filed with the Auditor of the
City. Any rentals collected by the Bureau of Fire under such agreements shall be transmitted by the Bureau of Fire to the City Treasurer within 24 hours after receipt by the Bureau, the rentals to be credited to the General Fund.
5.36.035 Lost or Stolen City Property.
(Added by Ord. No. 151849; June 25, 1981.)
A. Any City employee charged with the care or having custody of any City property which is lost or stolen shall immediately, upon discovery that such property has been lost or stolen, report such loss or theft in writing to his bureau or division head. The bureau or division head shall upon receipt of such report, immediately notify the Accounting Division in writing of such loss or theft. The Accounting Division shall make such investigation and report and recommendation as may be deemed appropriate.
5.36.040 Parking Meter Fund Equipment.
All vehicles, equipment, and other things heretofore purchased or which may be purchased in the future from the Parking Meter Fund for the use of any bureau having service to perform in connection therewith, are and shall be assigned to the bureau where used. They shall be inventoried in connection with and as a part of the vehicles, articles, and equipment of such bureau.
5.36.050 Use of City Automobiles for Transporting Firing Squads.
The Commissioner In Charge of any bureau or department having an automobile available shall have the authority to make use of the same in transporting firing squads for veteran’s funerals.
5.36.060 Use of Water Bureau Property by Bureau of Shops.
The Bureau of Shops shall have the use of the following described property owned by the Bureau of Water:
Lots 1, 2, 3, 4, 10, 11, and the west 40.92 feet of Lot 14; also that portion of Lot 5 lying west of a line drawn from the southeast corner to the northwest corner of said Lot 5; also a portion of Woodward Avenue now vacated, more particularly described as follows:
Beginning at a point in the north line of Lot 14, Water Bureau Addition, said point being north 73 degrees 35’45” west a distance of 26.19 feet from the southeast corner of said Lot 5; thence north 73 degrees 35’45” west 29.91 feet; thence south 89 degrees 44’30” west 92.29 feet to the northwest corner of Lot 10; thence north 0 degrees 15’30” west 50 feet to the southwest corner of Lot 4; thence north 89 degrees 44’30” east 80 feet to the southeast corner of Lot 4; thence south 73 degrees 35’45” east 40 feet to the southeast corner of Lot 5; thence to the point of beginning, all in Water Bureau Addition, in the City of Portland, Multnomah County, State of Oregon, according to the duly recorded plat thereof on file in the office of the clerk of said county and state.
The General Fund shall pay to the Bureau of Water the sum of $1 per year for the use of such property and the Bureau of Shops shall have the right to construct a building on such real property and maintain the same.
5.36.070 Equipment Pool Rotary Account.
The rotary account in the Department of Public Works known as the Equipment Pool Rotary Account (7040) shall be charged with all operation and maintenance expenditures including personal services on repairs for the equipment used primarily by the Bureau of Design, Survey and Drafting, Bureau of Maintenance, Bureau of Construction and the Bureau of City Engineer and shall be credited with all rental charges for equipment.
5.36.080 Zoological Specimens.
The Director of the City Zoo be, and he hereby is, invested with the authority to accept for and on behalf of the City such gifts and donations of zoological specimens hereafter tendered as in his judgment will be beneficial to the Zoo and of interest to the public; all such gifts and donations and the acceptance thereof to be in writing, signed by the giver or donor and by the Director of the Zoo, substantially as shown in Exhibit “A” hereto attached and by reference made a part hereof. The past actions of the Director as respects the authority herein given, are hereby ratified and adopted.
Exhibit “A”
PORTLAND ZOOLOGICAL PARK
Zoological Specimen Release
IN CONSIDERATION OF THE CITY’S ACCEPTANCE OF THE SPECIMEN HEREIN DESCRIBED, I HEREBY GIVE AND DONATE TO THE CITY OF PORTLAND, FOR THE PURPOSES OF THE MUNICIPAL ZOO, THE FOLLOWING ANIMAL:
Species. . . . . . . . . . . Sex. . . . .Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Physical Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
How Long in Possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where Obtained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special Remarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AND I HEREBY RELINQUISH ALL CLAIM TO SAID SPECIMEN AND/OR ITS PROGENY:
Signed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date . . . . . . . . . . . . . . . . . . .
Accepted for the Zoo by:
Signed . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Object Number . . . . . . . . . . . . . . . . . . . . .
5.36.090 Gifts and Loans of Property.
A. Whenever any real or personal property or the use thereof shall be offered to the City by way of donation, gift, grant, lease, loan or any other manner made available to the City by any person, firm, or corporation for the purpose of bestowing a gift or benefit upon the City, the Mayor hereby is authorized to accept any and all such real or personal property or the use thereof. The Mayor also hereby is authorized to execute any necessary agreement or document and to agree to any reasonable terms and conditions for the gift, grant, lease, loan or other use of such real or personal property. Provided, however, that any such grant, lease or loan by which the City shall be obligated in an amount exceeding $250 shall first be approved by the Council by special ordinance.
B. It shall be the duty of all bureau chiefs to promptly report to the Commissioner In Charge, the receipt of any gift, contribution, donation or other use of personal property from any person, firm or corporation for and on behalf of the City so that the Commissioner may cause such property to be promptly included in the City inventory.
5.36.100 Use of City Property for Elections.
The Commissioner In Charge of any property or premises of the City hereby is authorized to permit the use of such premises or facilities as polling places for any election held by the State, county or any municipal corporation.
5.36.110 Use of City Property for Air Quality Measuring Stations.
The Commissioner In Charge of any particular parcel of real property owned by the City is hereby authorized to grant permission in writing to any governmental body to install on said real property on a temporary basis an air quality measuring station; provided, however, that no such written permission shall be granted unless and until the requesting governmental body has stated in writing that the temporary installation will be accomplished without injury or damage to the City property and that said governmental body will reimburse City for all costs or expenses to City incident to the installation.
5.36.115 Designation of “Persons In Charge” for Purposes of Excluding Persons From City Property.
(Added by Ord. No. 161538, effective Feb. 4, 1989.)
A. For purposes of ordering persons to leave City property, each Commissioner In Charge is authorized to designate persons in charge of City property within that Commissioner’s assigned bureaus and departments or to which that Commissioner otherwise has authority. The designation shall be made in writing, and any person so designated shall be a “person in charge” as that term is defined in ORS 164.205(5) until the designation is removed by the Commissioner In Charge or the designated person ceases to be an employee or officer of the City of Portland.
B. City elected officials and the administrator of each City bureau shall advise the Commissioner In Charge on the selection of individuals to be designated as “persons in charge” of City property, and shall advise the Commissioner In Charge of the City property over which such individuals exercise control. They shall also advise the Commissioner In Charge when the list of designated “persons in charge” is in need of amendment.
C. The Commissioner In Charge shall maintain a list of all persons who have been designated as “persons in charge” of City property. Upon request, the City shall provide a copy of the list to the District Attorneys of Multnomah, Clackamas and Washington counties.
D. For purposes of this Section, “City property” shall include all real property either owned by the City or in which the City has a property interest.
Chapter 5.40
DEMANDS AND DISBURSEMENTS
Sections:
5.40.010 Drawing Checks in Payments of Claims.
5.40.020 Certain Demands to be Submitted to Council.
5.40.030 Appropriation to be Charged for All Demands.
5.40.040 Requisitions Required.
5.40.070 Funds Held for Benefit of Police Contributions Committee.
5.40.080 Requisition of Funds for Purchasing Police Evidence.
5.40.010 Drawing Checks in Payments of Claims.
(Amended by Ordinance Nos. 139226 and 173369, effective May 12, 1999.) The Mayor and the Auditor shall have the authority to draw checks on City funds upon approved requisition, duly executed contract, or order of the Council when the Auditor has determined that payment is legally due and payable.
5.40.020 Certain Demands to be Submitted to Council.
(Amended by Ordinance No. 173369, effective May 12, 1999.) All demands for expenses of litigation, damages, relief and other demands of like character, except as hereinafter provided, shall be examined by the Auditor and submitted to the Council by him with any recommendations, explanations or information he may deem pertinent thereto. When the demands are approved by the Council, checks shall be drawn in payment thereof.
5.40.030 Appropriation to be Charged for All Demands.
The Auditor hereby is directed to charge all demands for the furnishing of supplies, materials, equipment, etc. to appropriations therefor.
5.40.040 Requisitions Required.
Before any obligation is incurred under the provisions of this Chapter, except emergency purchases as provided in Section 5.32.030 and except specific payments directed by the Council, a requisition properly signed shall be presented to the Auditor in order that he may determine that the proposed expenditure is budgeted and that appropriation is available therefor. Each requisition shall state in detail the articles or services to be purchased and appropriation accounts proposed to be charged.
5.40.050 Payment of the City’s Contribution to the Public Employees Retirement Board and the State Industrial Accident Commission.
(Repealed by Ord. No. 139226; passed Dec. 19, 1974, effective Jan. 20, 1975.)
5.40.070 Funds Held for Benefit of Police Contributions Committee.
No money held by the City Treasurer in the Trustee Fund for the benefit of Police Contributions Committee shall be disbursed by him except on written request of the Chief of Police who shall first be advised in writing by the Secretary of the Affirmative Action of the above-named Committee to pay a sum certain to a particular named donee. The Treasurer shall, not later than January 15th of each year, furnish to the Chief of Police a statement showing the amounts received by him for the benefit of the Police Contributions Committee and the amounts paid out by him, if any, and to whom paid. The Chief of Police shall immediately advise the Committee of the contents of the report of the City Treasurer. The Committee shall, not later than January 31st of each year, advise each donor as to the portion of his donation that is tax deductible.
5.40.080 Requisition of Funds for Purchasing Police Evidence.
The Chief of Police is hereby authorized to requisition funds in advance of expenditure for the purchase of evidence against the illegal sale of liquor, gambling or other violations of laws. Each advancement shall be on a memorandum requisition approved by the Commissioner In Charge of the Bureau of Police and charged to the appropriation of the Bureau of Police for evidence procurement. The requisition shall be accompanied by an affidavit signed by the Chief of Police which shall state that the amount of cash to be advanced will be used only for the purpose of evidence against the illegal sale of liquor, gambling or other violations of laws. There shall be no further formal accountability for such funds beyond the affidavit. However, the Chief of Police shall maintain sufficient confidential records to be able to provide a confidential accounting to the Commissioner In Charge on his request.
Chapter 5.44
EXECUTION OF CONTRACTS
AND BONDS
(Repealed by Ordinance Nos. 174509
and 174904, effective January 1, 2001.)
Chapter 5.48
CHARGES FOR SERVICES
PERFORMED
Sections:
5.48.010 Authorization.
5.48.020 Application and Deposit.
5.48.030 Accounting Procedure.
5.48.035 Bureau of Emergency Communications - Recordings - Rates.
5.48.036 Office of City Attorney and Bureau of Risk Management - Records - Rates.
5.48.040 Collection of Money Due the City.
5.48.050 Improvements Without Assessment.
5.48.060 Interdepartmental Services Authorized.
5.48.070 Accounting Procedure for Interdepartmental Services.
5.48.010 Authorization.
Each Commissioner shall have authority to direct his subordinate employees to perform duly authorized services for private persons or other governmental agencies for all of which services a reasonable charge shall be made as provided in Section 5.48.030.
5.48.020 Application and Deposit.
Before any department or bureau of the City shall perform any service for a private person or other governmental agency, it shall be the duty of the department or bureau to obtain wherever practicable an application in writing requesting such service. A deposit may be required when in the judgment of the head of the department or bureau it shall be deemed necessary to guarantee the payment of the service to be performed. The application shall be retained by the department or bureau performing such services.
5.48.030 Accounting Procedure.
(Amended by Ord. No. 132116, 137528, and 138042; passed and effective April 4, 1974.) Unless the charge for services performed for private persons or governmental agencies other than the City is specifically fixed by the Charter, by action of the Council or by the Commissioner In Charge, all such services shall be charged for on the basis of actual costs, which shall be computed as follows:
A. Labor.
1. The amount for salaries and wages shall be either:
a. Actual time computed at the applicable hourly payroll rate when the services being provided require less than the full time of an employee on an annual basis, or
b. Annual salary including vacation, sick leave, holiday and other leave with pay when the services being provided require the full time of an employee on an annual basis.
2. To the amount for salaries and wages computed under paragraph A 1 above, add for the indirect cost of vacation, sick leave, holiday and other leave with pay and for the cost of disability, retirement and insurance as follows:
a. For other than sworn police personnel add 39 percent of salaries and wages.
b. For sworn police personnel add 42 percent of salaries and wages for labor provided at straight time. Add only 15 percent for labor provided at overtime rates.
3. To the amount for salaries and wages computed under paragraph A 2 above, add only for disability, retirement and insurance as follows:
a. For other than sworn police personnel add 21 percent of salaries and wages.
b. For sworn police personnel add 23 percent of salaries and wages provided at straight time only.
B. Materials consumed shall be at actual cost including delivery to the City. The Bureau of Water Works shall charge an additional 5 percent for stock handling.
C. Services from other City bureaus shall be at actual cost determined in accordance with Section 5.48.070.
D. Services provided from non-City sources shall be at actual cost to the City.
E. Motorized equipment, trailers, etc., shall be actual time at rates for each particular class of equipment established by the Commissioner In Charge.
F. General overhead of 10 percent of the total charges in paragraphs A through E above shall be added, except that the Bureau of Water Works shall add 15 percent.
5.48.035 Bureau of Emergency Communications-Recordings-Rates.
(Added by Ord. No. 143377; passed and effective March 30, 1977.) The Bureau of Emergency Communications is authorized to charge the following rates or the rate established by a court in a particular case for services rendered in locating and delivering particular segments of tape recordings for court use:
A. Labor.
1. Ten dollars per hour (straight time) for staff time expended for salaries and wages. After FY 1976-77 this rate shall be set equal to the 4-year rate for a police sergeant as approved in the official compensation plan of the City of Portland.
2. Plus 42 percent of the foregoing straight time amount or 15 percent of the foregoing for labor provided at overtime rates for indirect costs for the vacation, sick leave, holiday and leave with pay, and for the cost of disability, retirement and insurance.
B. Material Costs.
1. In addition to the foregoing amount, there shall be charged for material costs, $6.22 per hour for the time City’s recording equipment is in use.
C. General Overhead.
1. To the total of the above there shall be added 10 percent for general overhead.
5.48.036 Office of City Attorney and Bureau of Risk Management - Records - Rates.
(Added by Ord. No. 151447, April 1, 1981.) In making public records available for inspection by members of the public and in providing the members of the public with copies thereof, the office of City Attorney and the Bureau of Risk Management shall charge therefor on the basis of actual costs of making available and copying the records, as set out in Section 5.48.030. This Section shall not apply to those cases in which the charge would be $5 or less, in which cases the charge shall be the amount set out in Section 5.60.020.
5.48.040 Collection of Money Due the City.
(Amended by Ord. No. 147159, 149198, and 165955; Nov. 4, 1992.) The Office of Finance and Administration of the City shall bill for all services performed for other persons by the City and for all City accounts receivable, contracts receivable and grants receivable except for bills and statements regularly sent by the Bureau of Water Works, the City Treasurer, the Risk Management Division, the Assessment Division of the City Auditor’s Office and payments made under leases managed by the Bureau of General Services.
It shall be the duty of the officers of various departments, bureaus and divisions of the City to furnish the Office of Finance and Administration, daily, a list or journal of all charges that are to be billed, together with supporting data.
If payment of a City bill sent by the Office of Finance and Administration is not received within 30 days after the date of billing, it shall be delinquent. It shall be the duty of the Office of Finance and Administration to pursue collection of these delinquent accounts using appropriate collection methods. When collection efforts do not result in payment, invoices will be forwarded to the City Attorney for collection, or in appropriate cases to the City Auditor’s Office to submit to the Council an ordinance assessing the unpaid bill upon property chargeable therewith. The Director of the Bureau of Administrative Services may select delinquent accounts to refer to a collection agency if the director deems such referral appropriate.
Interest of 1 percent per month shall be charged on all bills which remain unpaid for 30 days or more after the invoice billing date. Interest shall be computed from the invoice date and compounded monthly.
The Director of the Bureau of Administrative Services may add a rebill charge to delinquent accounts. The rebill charge shall be he greater of $5.00 or 25 percent of the amount which is delinquent, up to a maximum charge of $25.00. The rebill charge may be reassessed every 60 days, until the account is paid, assessed, canceled or waived.
The Director of the Bureau of Administrative Services may offer an early payment incentive discount of up to 2 percent on any or all invoices paid within 10 days of the billing date.
5.48.050 Improvements Without Assessment.
(Amended by Ord. No. 144020; passed July 7, effective July 11, 1977.)
A. Whenever the City is requested to construct an improvement without using assessment procedures, and the improvement is to be constructed under contract in the name of the City, the person or agency submitting the request shall make an advance deposit into the Trustee Fund to protect the City against loss on account of obligations to be assumed in connection with the improvement. The advance deposit shall cover the following items:
1. Estimated amount of the contract for the improvement;
2. A fee for engineering and superintending equal to the engineer’s estimate of the cost of providing such services. Use accounting procedure 5.48.030.
3. Overhead of City in advertising for bids, preparing the contract, disbursing funds, etc., at 1/2 percent of the estimated contract amount with a minimum of $100.
Additional deposits may be required by the Commissioner In Charge at any time he may deem necessary to protect the City.
B. Advertising for bids and executing contract shall be authorized only by the City Council. In no event shall a contract be awarded for more than 93 percent of the funds on deposit.
C. The deposited funds shall be disbursed by the City Treasurer on order of the Commissioner In Charge of the improvement project and after approval by the City Auditor. Disbursements shall be made as follows:
1. Contract payments shall be paid directly to the contractor;
2. Engineering fees and overhead shall be paid to the appropriate fund as revenue after the final cost of the contract has been determined.
3. Prior to the issuance of the certificate of completion by the City Engineer the fees charged to the permittee will be adjusted to agree with the actual costs of services as recorded by the City Engineer. The remaining balance, if any, after payment of all costs shall be returned to the permittee. If additional funds are required of the permittee, they shall be paid prior to the issuance of the certificate of completion.
5.48.060 Interdepartmental Services Authorized.
Each Commissioner shall have power and authority, in the direction of activities of his department, to use the officers, employees, material, and equipment in different bureaus or divisions of such department whenever in his judgment the most efficient and economical administration of the affairs of his department requires; provided, that the appropriations carrying the cost of such services shall be reimbursed by calculating the cost of such services as hereinafter provided. Each Commissioner shall also have authority to direct his subordinate employees to perform duly authorized services for other bureaus or departments, for all of which services a reasonable charge shall be made.
5.48.070 Accounting Procedure for Interdepartmental Services.
Unless a specific charge is fixed by the Council, by Charter or by the Commissioner In Charge, for services rendered under the provisions of Section 5.48.060, all such services for other bureaus or departments within the same fund or another fund shall be charged for on the same basis as work performed for private persons as provided in Section 5.48.030, except that stock handling costs under Section 5.48.030 B, and general overhead under Section 5.48.030 F shall not be added.
Chapter 5.50
COLLECTIONS SECTION
(Added by Ord. No. 147159; passed
and effective Feb. 1, 1979.)
Sections:
5.50.010 Collections Section.
5.50.020 Compromise Authorization.
5.50.030 Money Collected.
5.50.010 Collections Section.
A. A Collections Section shall be established within the Risk Management Division. This Section shall be responsible for the investigation, billing, collection and compromise of accounts receivable generated by losses suffered by the City including, but not limited to, vehicle accidents, street light and traffic accidents, property damage for vandalism or negligence and theft, and claims by the City for services rendered without a formal contract including, but not limited to property board ups, but not any claim for which the City may impose a lien. If necessary, the Collections Section may assign individual accounts to outside collection agencies. This Section shall also be responsible for gathering cumulative data necessary for establishing methods to remove or reduce the causes of such losses in the future.
B. The bureau sustaining the loss or damage shall send a report to the Collections Section within 2 working days from the date of loss or damage. The bureau shall supply all information relating to the loss to the Collections Section and shall cooperate with and assist the Collections Section in the investigation and collection of such loss or damage.
C. The Collections Section shall recommend that the City Attorney institute suit in appropriate cases. The City Attorney shall institute legal proceedings for the City in any court or tribunal upon direction of the Council or with the approval of the Commissioner of Finance and Administration and for good cause shown.
D. Nothing in this Chapter shall be applicable to accounts receivable arising under any contract.
5.50.020 Compromise Authorization.
The Collections Section with the approval of the Commissioner of Finance and Administration is authorized and directed to effect compromises in all cases where in the judgment of the collections Section, substantial justice can thus be achieved. These compromises are authorized in all cases involving an original claim of $5,000 or less.
Where the amount of the original claim is greater than $5,000 but less than $10,000, the Collections Section with the approval of the Commissioner of Finance and Administration is authorized to accept compromises which provide for payment to the City of not less than 50 percent of the amount of the original claim. Where the amount of the original claim is greater than $10,000, the Collections Section with the approval of the Commissioner of Finance and Administration is authorized to effect compromises which provide for payment to the City of not less than 75 percent of the original claim. Where the amount of the original claim is greater than $5,000, lesser amounts than herein specified may be accepted in compromise only with Council approval. The Collections Section with the approval of the Commissioner of Finance and Administration is authorized to cancel accounts receivable invoices of under $5,000 in amount or accept promissory notes or confessions of judgment where in the judgment of the Collections Section, substantial justice can thus be achieved.
All compromises shall be in writing utilizing forms approved by the City Attorney.
5.50.030 Money Collected.
All monies collected by the Collections Section will be credited to the appropriate City fund less a service charge of 15 percent for all claims for damages to its property against any third party tort-feasors arising out of an accident or incident. A 25 percent service charge will be required if necessary to assign to an outside collection agency. This service charge will be credited to the Insurance and Claims Fund. Financial records of amounts recovered will be cumulated and maintained by the Collections Section indicating the bureau and fund for which such amounts are recovered.
Chapter 5.52
PETTY CASH AND CHECKS
(Amended by Ordinance No. 173369,
effective May 12, 1999.)
Sections:
5.52.010 Petty Cash and Change Accounts.
5.52.020 Cancellation of Checks and Issue of in Lieu Checks.
5.52.030 Cancellation of City Assessments on Mortgage records.
5.52.040 When Checks Are to Be Canceled.
5.52.050 Drawing Checks on Charter Appropriations.
5.52.060 Establishing Checking Account and Providing for Payment of Certain Refunds by Check.
5.52.010 Petty Cash and Change Accounts.
(Amended by Ord. No. 135063, 138943, 141163, 146673, 152320, 162106; and 169321 Sept. 20, 1995.)
A. Various offices of the City government shall have petty cash and change cash accounts as authorized by the Council by ordinance. Petty cash accounts shall be for incidental expenditures and change cash accounts shall be for the purpose of making change at authorized locations and activities.
B. The amount of each purchase from petty cash accounts shall not exceed $100 unless approved in writing by the Bureau Manager.
C. A petty cash account exceeding $1,000 may be maintained as a checking account designated “City of Portland, Bureau of , (Title of Account.)” Such accounts shall be the responsibility of the individual bureaus/agencies, which will:
1. Authorize in writing three signatures for each account.
2. Require two signatures on each check.
3. Establish a dollar limit for each check.
4. Establish a control system for the account.
5. Provide for audit procedures.
The City Treasurer shall provide technical assistance to the bureaus/agencies in the establishment of such accounts.
D. Reimbursement from petty cash accounts may be made to employees for the purchase of safety shoes and/or rain gear as provided in labor contracts with the City. Such reimbursements for these specific purchases shall be restricted to the $100 limitation for petty cash purposes.
5.52.020 Cancellation of Checks and Issue of in Lieu Checks.
(Amended by Ordinance No. 173369, effective May 12, 1999). The Mayor and Auditor shall have the authority to cancel any City check issued for the payment of money and to issue in lieu thereof one or more checks; provided, that in lieu checks shall be drawn against the same fund and shall not exceed in the aggregate the amount of the check cancelled; and provided further, that such in lieu checks shall state on the face thereof the numbers and date of the check in lieu of which they are issued. In the event that a check is claimed to have been lost, stolen, or destroyed the payee or holder shall promptly give notice to the City Treasurer to stop payment and file with the Auditor a request for a new check which shall include a statement of facts concerning the claimed loss, theft or destruction of the check. The Mayor and the Auditor shall have the authority to issue a new check in place of the lost check; provided, however, that before delivery of the substitute check, the Auditor shall require from the payee a document relieving the City, its officers and employees from all harm in connection with the drawing and delivery of the substitute check, which document shall be approved as to form by the City Attorney.
5.52.030 Cancellation of City assessments on Mortgage Records.
The City Auditor is hereby authorized and empowered to cancel when paid, any and all assessments which have been or may be entered in the mortgage records for the cost of constructing sewers, drains, and all works necessary therefor by the City. Such cancellations may be made by endorsing a cancellation on the margin of the record as in case of release of mortgage or by executing and acknowledging a formal instrument of cancellation. Such cancellation shall be made only where payment has been duly received by the City Treasurer and duplicate copy of the receipt for such payment has been presented to the City Auditor.
5.52.040 When Checks Are to Be Canceled.
(Amended by Ordinance No. 173369, effective May 12, 1999.) At the close of each fiscal year the Auditor of the City is hereby authorized and directed to cancel all checks the date of which shall be in excess of 6 years prior to the time of such cancellation.
5.52.050 Drawing Checks on Charter Appropriations.
(Amended by Ordinance No. 173369, effective May 12, 1999.) The Mayor and the Auditor shall draw checks on the appropriations provided for by Section 2-108 and Section 2-105 (14) of the Charter when a memorandum requisition for funds has been submitted to the Auditor which has been signed personally by the Commissioner of Finance and Administration. The proceeds from the checks shall be held by the Commissioner of Finance and Administration for disbursement.
5.52.060 Establishing Checking Account and Providing for Payment of Certain Refunds by Check.
(Added by Ordinance No. 134182; amended by Ordinance Nos. 161197 and 173369, effective May 12, 1999.) The Bureau of Water Works may establish a checking account in a bank approved by the Commissioner In Charge. The Bureau may deposit all or any part of its authorized petty cash funds for Sewer User Refunds, Water User Refunds and Deposit Refunds. Numbered checks for the refund account shall be issued as required in favor of the recipient of the refund. No check shall be issued for any refund in excess of $1,000. Canceled checks on such account shall be retained for audit purposes. Refund checks shall be signed only by the Water Bureau Administrator or the Director of Finance and Administration or the Customer Accounts Manager of the Bureau of Water Works. Signature of only one of the designated officials shall be required on any refund check for less than $500. Checks issued from $500 to $1,000 shall require two signatures. Reimbursement to the refund checking account as is required shall be by check charged to the appropriate fund.
Chapter 5.56
AMBULANCE SERVICE
Sections:
5.56.010 Police Radio Dispatch Service.
5.56.020 Acceptance by Ambulance Companies.
5.56.010 Police Radio Dispatch Service.
In order to prevent a duplication or multiplicity of ambulance service at the scene of any emergency or disaster, the Bureau of Police Radio Dispatcher will notify by direct phone furnished by the ambulance operator, the ambulance nearest the emergency or disaster scene. In consideration for the emergency dispatching service herein provided for, the private ambulance operators shall pay to the City the sum of $600 per month. Each ambulance operator shall pay monthly a sum equal to $600 divided by the number of ambulance companies participating in the dispatching service.
All monies due the City by the terms of this Section shall be paid by the 10th day of the month following the month in which dispatching service was furnished. All such money received by the City shall be credited to the General Fund Revenue Account, police charges, Code 432.
5.56.020 Acceptance by Ambulance Companies.
No monies shall be paid out or received by the City under the authority contained in this Chapter until the ambulance company requesting payment from the City or offering payment to the City shall have executed an acceptance of the terms of this Chapter in writing in form approved by the City Attorney.
Chapter 5.60
MISCELLANEOUS CHARGES
Sections:
5.60.010 Charges For Architectural Services.
5.60.040 Employee Lists Furnished by Accounting Division Manager.
5.60.050 Licensees’ Lists Furnished by License Bureau.
5.60.110 Driving City Cars to and from Work
5.60.120 Lien Accounting System Access.
5.60.010 Charges For Architectural Services.
(New Section substituted by Ord. No. 136092; passed and effective March 1, 1973.) Services performed by the Bureau of Architectural Planning for a service financed from a City fund other than the General Fund or by another governmental agency shall be charged for at the rate of 165 percent of the salary rates of the individuals working on the project. Services which are to be provided shall be undertaken only on approval of the Commissioner In Charge. Services to be charged for shall be authorized only after it has been determined that funds are available for payment.
5.60.020 Public Records Copy Charges.
(Repealed by Ord. No. 156910 Dec. 26, 1984.)
5.60.040 Employee Lists Furnished by the Accounting Division Manager
(Amended by Ordinance No. 155770, April 4, 1984.)
A. Upon written application, the Accounting Division Manager may furnish to any applicant a list of names of City employees.
B. The Accounting Division Manager may charge a fee for providing such information with such fee determined by the Accounting Division Manager to be reasonable and approximating the cost to the City of providing the information.
C. The information provided by the Accounting Division Manager pursuant to this Section shall be limited to names of employees only, and shall not include addresses, or phone numbers.
D. This Section is not intended to prevent, nor is it related to, the verification of personal information provided voluntarily by employees to others.
5.60.050 Licensees’ Lists Furnished by License Bureau.
Upon written application accompanied by the fee hereinafter set out, the Bureau of Licenses may furnish to any applicant a list of licensees. The fee for such list shall be as follows:
A. For any list containing the names of not more than 15,000 licensees, the fee shall be $250;
B. For any list containing the names of more than 15,000 licensees, the fee shall be in addition to the above, $1 for each 100 names or fraction thereof.
No list of names of licensees shall be furnished to any person not a City employee without the prior approval of the City Licenses Director.
5.60.110 Driving City Cars to and from Work.
(Amended by Ordinance Nos. 141835, 142504, 154639, 157641; 168313 and 173369, effective May 12, 1999.)
A. Employees authorized to drive City vehicles to and from their place of residence shall pay to the City a rental charge for each accounting period of use. The rental charge shall be based upon Internal Revenue Service guidelines.
If there is more than one City employee commuting in the same vehicle, the charge to the passenger will be equal to that of the driver. It shall be the responsibility of bureaus to report to the Accounting Division vehicles used as commuting vehicles.
Payroll deductions for rental charges shall be made from the employee’s second payroll check of the month. Submission of the Personal Use of City Vehicle form is required upon vehicle assignment, cancellation, or when reduction is requested by Friday of the payroll submission week.
B. Credit will be given when total consecutive working days of nonuse exceed working days.
C. Requests for authorization to drive City vehicles to and from work must be approved by the employee’s bureau manager and the employee’s Commissioner In Charge.
5.60.120 Lien Accounting System Access.
(Added by Ord. No. 159619 Apr. 30, 1987.) Access to the City’s automated Lien Accounting System shall be provided at the current dollar rate per second of Central Processing Unit (CPU) time as charged to the City Auditor’s Office by the Bureau of Computer Services. Agencies and individuals not affiliated with the City of Portland shall be billed monthly for actual usage at the current rate, plus $5 per month administrative charge. This fee shall be effective as of July 1, 1987.
Chapter 5.64
MISCELLANEOUS FISCAL
PROVISIONS
Sections:
5.64.010 Fiscal Agency in New York City.
5.64.020 Appointment of Deputy Auditors.
5.64.030 Treasurer to Cash Credit Union Checks.
5.64.040 Bureau of Water Works Accounts.
5.64.050 Execution of Releases from Claims for Damages.
5.64.060 Cancellation of Refund Checks.
5.64.070 Refunds.
5.64.090 Investment of Available Funds.
5.64.100 Determination of City’s Subrogation for Time Loss Payments.
5.64.110 Procedure upon Obtaining Real Property with Outstanding Liens, Assessments or Accumulated Interest.
5.64.010 Fiscal Agency in New York City.
The National Bank of New York, New York City, State of New York, shall be the fiscal agency in New York City for the City.
5.64.020 Appointment of Deputy Auditors.
The Auditor of the City shall have the authority to appoint as his deputies with power to act for and in his behalf any and all persons employed in the Office of the Auditor of the City. The authority hereby conferred shall in no way affect the classifications or salaries of employees so appointed, the authority being conferred merely for the purpose of facilitating the transactions of business in the office of the City Auditor.
5.64.030 Treasurer to Cash Credit Union Checks.
The City Treasurer is hereby authorized and directed to accept and cash checks properly drawn by the City Employees’ Credit Union, signed by the Treasurer and countersigned by the President and Vice President. It shall be the duty of the Secretary of the City Employees’ Credit Union to file with the City Treasurer annually at the time of election of officers of the credit union a certificate showing the name of the President, Vice-president and Treasurer of the Credit Union. In the event any change is made in the organization of the Credit Union whereby any other officers or individuals are authorized to sign or countersign checks, the same shall be immediately transmitted to the City Treasurer by the Secretary by the filing with the City Treasurer of a certificate so stating. In the event any change in officers is made at any time during the year the same shall be immediately transmitted to the City Treasurer in like manner.
5.64.040 Bureau of Water Works Accounts.
The Auditor of the City is hereby directed to exercise the same supervision and authority over the accounts and financial affairs of the Bureau of Water Works as he is authorized, directed, and required by the Charter and ordinances of the City to exercise over other bureaus.
5.64.050 Execution of Releases from Claims for Damages.
The City Treasurer, or Deputy Treasurer, in the absence or inability to serve of the City Treasurer, is hereby authorized upon receiving payment in full of claims for damages, to execute and deliver on behalf of the City a formal release and discharge of and from any further liability upon such claim; provided, that such release be first approved by the City Attorney.
5.64.060 Cancellation of Refund checks.
The City Treasurer shall cancel outstanding refund checks after 6 years. The amount represented by such checks shall be transferred from the refund account to the General Fund. In order that persons having refunds due which are represented by outstanding refund checks may not be precluded from establishing their right to such refund in the future, any person entitled to a refund, for which refund a check has been issued and has not been presented for payment within 6 years, and which refund has been canceled under the provisions of this Section, may petition the Council at any time for the allowance of such refund. The Council may after hearing upon such claim allow and pay the amount of such refund from the General Fund. Such payment however shall be made only by ordinance.
5.64.070 Refunds.
(Amended by Ordinance No. 173369, effective May 12, 1999.)
A. The Mayor and Auditor are authorized to draw checks making refunds for any purpose except as provided in Subsection B below. A check may be drawn when a properly signed memorandum requisition is presented which contains a statement showing the necessity for the refund and the amount thereof, or which is supported by such statement. The statement shall bear the approval of the bureau head responsible for determining the amount of refund and he shall initiate the necessary requisition. A refund in any amount may be paid from petty cash if funds are available and if the required statement is submitted.
B. The Mayor and Auditor are authorized to draw checks for the refund of assessments paid in error after such refunds have been properly recorded in the Auditor’s refund register, provided that no refund shall be made on account of assessments paid where the description of property assessed is found to be erroneous unless such refund is first authorized by Council.
C. A refund shall be charged against appropriations if the amount to be refunded was previously credited to a budgetary fund. It shall be charged to the fund receipts previously credited if the amount to be refunded was credited to a nonbudgetary account.
5.64.090 Investment of Available Funds.
The City Treasurer hereby is authorized to invest any uninvested surplus balance to the credit of the General Fund or any sinking fund or special fund in interest bearing securities such as may be lawfully held by the City under Section 7-105 of the City Charter. The Treasurer may purchase such securities on the open market and may bid on new issues of such securities. The Treasurer may sell such securities on the open market, if there is an established market therefor, as necessary to meet the cash needs of the various funds.
The authority herein granted to the Treasurer may only be exercised with the approval of the Commissioner of Finance and Administration and, in the case of the investment of sums held in special funds or sinking funds, with the approval of Commissioner In Charge of the budget of such sinking fund or special fund.
5.64.100 Determination of City’s Subrogation for Time Loss Payments.
The City Attorney shall determine the amount of any City claim under Charter Section 2-608 for time loss payments made to any officer or employee of the City. In making such determination the City Attorney shall consider the amount of time loss paid by the City, the amount of recovery, the nature and degree of the injury, the costs and expenses incident to the injury or to the recovery of damages, the testimony and evidence insofar as the same is conveniently available, the legal factors involved and all other facts and circumstances which he finds relevant to the particular situation. A tentative determination of the City claim may be made prior to recovery if the City Attorney finds it to be appropriate to assist in settlement of the claim of the officer or employee against another person. Such determination by the City Attorney on the basis of settlement or adjudication of the claim of the officer or employee shall in each case be deemed the amount of the City’s claim by subrogation.
5.64.110 Procedure Upon Obtaining Real Property with Outstanding Liens, Assessments or Accumulated Interest.
In all cases where the City acquires a parcel of real property by purchase, gift, trade or otherwise, and the City is obligated to pay an outstanding lien and/or assessment with or without accumulated interest, the officer or Commissioner In Charge of the department or bureau acquiring the real property shall be responsible for the payment of the outstanding lien and/or assessment with accumulated interest, if any, from the appropriate fund at the time of acquisition.
Chapter 5.68.
PROFESSIONAL, TECHNICAL AND
EXPERT SERVICE CONTRACTS
Sections:
5.68.010 Definition.
5.68.015 General Requirements.
5.68.020 Application.
5.68.030 Public Announcement of Requirements.
5.68.035 Authority to Obligate City for Professional, Technical or Expert Services.
5.68.040 Services Costing Under the Formal Bid Threshold Set Annually by the City Auditor.
5.68.050 Selection Committee.
5.68.060 Selection Committee Duties.
5.68.070 Review by City Attorney.
5.68.075 Outside Legal Services.
5.68.080 Procedure for Selection of Bond Counsel.
5.68.090 Contractor’s Compliance with Workers’ Compensation Requirements.
5.68.010 Definition.
(Amended by Ordinance Nos. 169960 and 174347, effective April 12, 2000.) For the purposes of this ordinance, “professional, technical and expert” shall refer to any individual or group, excluding regular City employees, who, for a fee, provides services or gives professional advice regarding matters in the field of their special knowledge or training, including but not limited to: planners, architects, engineers, lawyers, accountants, doctors, dentists, ministers, and counselors in investments, insurance, advertising, graphics, training, public relations, communications, data processing and management systems. Such contracts may include incidental materials such as written reports, architecture or engineering renderings, and similar supplemental materials. The Purchasing Agent shall have authority to classify those services not specifically addressed in this provision.
5.68.015 General Requirements.
(Added by Ordinance No. 166419; amended by 174347, effective April 12, 2000.) To ensure that the interests of the public are fully served and that the process for awarding city professional, technical and expert service contracts promotes competition and accountability, bureaus, responsibility units and selection committees shall be guided by the Professional, Technical and Expert Services Manual issued by the Bureau of Purchases and City Attorney. That manual requires consideration of selection criteria which include but are not limited to: expertise, experience, compensation requirements, diversity in employment and contracting and project approach. All PTE contracts submitted for approval shall be accompanied by a "PTE Contract Worksheet" prepared by the submitting bureau.
5.68.020 Application.
(Amended by Ordinance Nos. 150708, 166419, 166585, 167191, 174347 and 174999, effective November 17, 2000.) This Chapter shall apply to City procurement of professional, technical and expert services, except those required for the processing of any claim for workers' compensation benefits, the determination of any prospective or current City employee's ability to work or return to work, for the determination of any reasonable accommodation that may be made to any job classification in the City, or for selection of expert witnesses or outside legal counsel by the City Attorney. If any emergency exists such that following the requirements of this Chapter would adversely affect the City's interest, or if it is known that only one party is available to provide services or expertise required for a project, then a contractor may be selected without following these requirements, but the bureau or responsibility unit so selecting shall report its action to the City Purchasing Agent, who shall include these contracts in periodic reports to the Council.
5.68.030 Public Announcement of Requirements.
(Amended by Ordinance Nos. 166419, 169960 and 174347, effective April 12, 2000.) Each bureau or responsibility unit anticipating the need for professional, technical or expert services shall submit a list of anticipated projects to the Bureau of Purchases at least once a year. The Bureau of Purchases shall use this information to publish an annual PTE calendar, which shall be available to all interested PTE vendors. The Bureau of Purchases shall develop and implement a strategy to ensure that the City’s PTE projects are advertised in publications serving Portland’s diverse communities, including minority and women-oriented publications, so that equitable access to information about the City’s PTE contracting opportunities is made available.
Each bureau or responsibility unit shall also announce its requirement for professional, technical and expert services on each project where such services are estimated to cost more than the formal bid threshold set annually by the City Auditor, by advertising on at least three consecutive days in the City's official newspaper or other publications as deemed appropriate by the Purchasing Agent. This announcement shall include a description of the project, the type and scope of the professional, technical or expert services needed, the name of the project manager, and, if necessary, directions for obtaining further information.
5.68.035 Authority to Obligate City for Professional, Technical or Expert Services
(Added by Ordinance No. 174347, effective April 12, 2000.) All professional, technical or expert services contracts or purchase orders shall be in writing in a form approved by the City Attorney.
The Mayor, each City Commissioner and the City Auditor, or the designated managers for their offices, departments or bureaus, are authorized to obligate the City, or to authorize the Purchasing Agent to obligate the City for an amount not exceeding the formal bid threshold set annually by the City Auditor, without a specific ordinance for professional, technical or expert services, provided that the obligation is included within the current fiscal year budget. The Mayor, a City Commissioner or the City Auditor may execute a resulting contract for the City, or may authorize the Purchasing Agent to execute the contract. An original, executed copy of the contract, approved as to form by the City Attorney, shall be filed with the City Auditor.
The designated managers for the offices, departments or bureaus of the Mayor, each City Commissioner and the Auditor are authorized to obligate the City and execute contracts or purchase orders in a form approved by the City Attorney, for professional, technical, or expert services not to exceed $5,000.00, unless such authority has been revoked by the Purchasing Agent.
5.68.040 Services Costing Under The Formal Bid Threshold Set Annually By the City Auditor.
(Amended by Ordinance Nos. 166419, 169960 and 174347, effective April 12, 2000.) Bureaus or responsibility units utilizing professional, technical or expert services at a cost less than the formal bid threshold set annually by the City Auditor shall make every effort to rotate the work among qualified parties.
Each bureau or responsibility unit desiring professional, technical or expert services at a cost less than the formal bid threshold set annually by the City Auditor shall seek informal quotes from at least three qualified firms or individuals for each project. At least one of the firms or individuals shall be a woman or minority owned business, or emerging small business. If a bureau or responsibility unit does not contact a woman or minority owned business, or emerging small business, or does not solicit three quotes, the bureau or responsibility unit must explain in its PTE Contract Worksheet why it did not do so.
A bureau or responsibility unit that awards two or more related contracts to the same contractor for which the aggregate compensation for the contracts exceeds the formal bid threshold set annually by the City Auditor shall submit a written explanation to the Auditor. The explanation should state why the contractor was awarded two or more contracts, rather than one, for services on a single project. For purposes of this Section, contracts are related if each provides for similar services on the same project.
The informal/formal bid threshold is set annually by the City Auditor pursuant to City Charter Sections 8-104 and 8-105.
5.68.050 Selection Committee.
(Amended by Ordinance No. 174347, effective April 12, 2000.) Each bureau or responsibility unit desiring a professional, technical or expert services contract of more than the formal bid threshold set annually by the City Auditor shall establish a professional, technical or expert selection committee. The committee, with approval of the Commissioner, shall be chosen by the bureau or responsibility unit head and shall have a minimum of three members. The committee shall include at least one person from outside City government with expertise in the particular area of consideration unless the Commissioner In Charge explicitly waives this requirement.
5.68.060 Selection Committee Duties.
(Amended by Ordinance Nos. 166419 and 174347, effective April 12, 2000.) The selection committee shall establish and abide by a uniform system of selecting professionals, technicians or experts for the proposed project. The system shall be public information and shall be available to all parties.
Each bureau, responsibility unit or selection committee shall seek written proposals from at least three qualified firms or individuals for each project. At least one of the firms or individuals shall be a business certified by the state of Oregon as a minority, women, or emerging small business. If the bureau, responsibility unit or selection committee does not contact a business certified by the state of Oregon as a minority, women, or emerging small business, or receive three or more proposals, it must explain in its PTE Contract Worksheet why it did not do so.
The committee shall make its selection, and shall notify both successful and unsuccessful candidates. The bureau or responsibility unit shall be responsible for completion of contract and ordinance procedures, and direction of the work. Upon completion of the work for the project the selection committee using publicly available criteria, shall review the professional, technical or expert work performance and prepare a report for the Commissioner In Charge.
5.68.070 Review by City Attorney.
All professional, technical or expert service contracts shall be reviewed by the City Attorney. All such contracts shall conform to equal opportunity guidelines as well as Charter, Code, and funding requirements.
5.68.075 Outside Legal Services.
(Added by Ord. No. 157205, April 4, 1985.)
A. Except as specifically exempted by this Section, and in addition to the other requirements of this Chapter for professional, technical and expert service contracts the following procedures and requirements shall apply to any contracts for legal services to be provided by attorneys outside of the Office of the City Attorney.
1. All City bureaus and agencies shall submit in writing to the City Attorney all requests for legal services from outside the City Attorney’s Office before any agreement is made to obtain any such outside legal services.
2. All billings and invoices for outside legal counsel’s services shall be directed to the City Attorney for review and approval prior to payment.
3. The Purchasing Agent shall not process any purchase requisition for outside legal services without the written approval of the City Attorney or his/her designee.
4. The Accounts Payable Division shall not process for payment any billing or invoice for outside legal services without the written approval of the City Attorney or his/her designee.
5. The provisions of this Section shall not apply to selection of bond counsel, which shall be selected in accordance with Section 5.68.080 of this Code, however, all billings and invoices of bond counsel shall be directed to the City Attorney for review and approval prior to payment.
5.68.080 Procedure for Selection of Bond Counsel.
(Added by Ord. No. 146804; amended by 151168, 155018; and 159248 Dec. 18, 1986.)
A. At the time a bureau determines it will need bond counsel for a project or series of projects, the bureau will notify the City Attorney. The City Attorney or designate shall notify each counsel listed in the Oregon Section of the Bond Buyer’s Directory of Municipal Bond Dealers (Red Book), requesting that those interested in serving as bond counsel for the project or series of projects submit proposals. The notice shall indicate the nature of the project or series of projects, the type and approximate amount of bonds, the approximate date for the sale or sales of bonds, the bond counsel services required, and the date proposals are due.
B. Those counsel interested shall provide the following information to the City Attorney:
1. A statement of the fee arrangement proposed by the firm.
2. Such other information as the City Attorney deems appropriate.
C. On receipt of the proposals the City Attorney shall refer them to a consultant selection committee consisting of the City Attorney or his or her designate; the Director of the Office of Fiscal Administration or his or her designate; and the Bureau Chief or his or her designate. The Committee shall consider only firms that are listed in the Red Book. The Committee may interview any or all firms, including more than once. The Committee may authorize firms to modify their proposals during the interview period.
D. The Consultant Selection Committee shall select a law firm to serve as bond counsel for the project or series of projects. The selection shall be based on fee, experience, or such other criteria as the Committee deems appropriate.
5.68.090 Contractor's Compliance with Workers' Compensation Requirements
(Replaced by Ordinance No. 174347, effective April 12, 2000.) Prior to the performance of any work under a professional, technical or expert services contract awarded by the City, a contractor shall comply with the Workers' Compensation Law, ORS Chapter 656, as it may be amended, and if Workers' Compensation Insurance is required by ORS Chapter 656, shall maintain coverage for all subject workers as defined by ORS Chapter 656, and shall maintain a current, valid certificate of Workers' Compensation Insurance on file with the City Auditor for the entire period during which work is performed under the contract.
Chapter 5.72
ECONOMIC DEVELOPMENT
PROJECTS
(Added by Ord. No. 145441; amended by
149771, l55942, 157012; and l57226
passed April 11, effective
May l3, l985.)
Sections:
5.72.010 Purpose.
5.72.020 Definitions.
5.72.030 Economic Development - Applications.
5.72.040 Economic Development - Initial Review, Standards.
5.72.050 Housing - Applications.
5.72.060 Housing - Initial Review, Standards.
5.72.070 Initial Determination of Eligibility, Final Approval, Appeals.
5.72.080 General Conditions; Document Preparation and Review.
5.72.090 Application Processing, Financial Considerations.
5.72.100 Administrative Fees.
5.72.110 Bond Issuance.
5.72.120 Reporting Requirements.
5.72.010 Purpose.
The purpose of this Chapter is to provide necessary procedures and standards to carry out the powers granted to the City by Chapter 772, Oregon Laws of 1977 (ORS 280.410 to 280.485) as amended. This Chapter shall be liberally construed in order to carry out this purpose.
5.72.020 Definitions.
(Amended by Ordinance Nos. 166682 and 172567, effective August 12, 1998.) As used in this Chapter unless the context requires otherwise:
A. “Economic development project” includes any properties, real or personal, used or useful in connection with a revenue producing enterprise. “Economic development project” shall not include any facility or facilities designed primarily for the operation, transmission, sale, or distribution of electrical energy. “Economic development project” also includes multiple unit residential housing development on land having an assessed valuation of $8 per square foot or more on September 13, 1975, land within a designated urban renewal or redevelopment area formed pursuant to ORS Chapter 457, land within an area designated as a Housing and Community Development target neighborhood pursuant to the Housing and Community Development Act of 1974, or projects which benefit low or moderate income tenants, or address slum and blight as defined by the 1974 Housing and Community Development Act.
B. “Eligible project” means an economic development project found by the City to meet standards adopted pursuant to this Chapter. “Eligible project” includes multiple unit residential housing development which increases available housing units through new construction, rehabilitation of nonresidential buildings, or provides for rehabilitation of residential buildings.
C. “City” means the City of Portland.
D. “Costs” as applied to any project must conform to all applicable Internal Revenue Service regulations and may include:
1. The cost of construction and reconstruction.
2. The cost of acquisition of property, including rights in land and other property, both real and personal and improved and unimproved and the cost of site improvements.
3. The cost of demolishing, removing or relocating any buildings or structures on lands so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved or relocated.
4. The cost of eligible machinery and equipment and related financing charges.
5. The cost of engineering and architectural surveys, plans and specifications.
6. The cost of financing charges and interest prior to and during construction, and if deemed advisable by the City for a period not exceeding 1 year after completion of construction.
7. The cost of consultant and legal services, other expenses necessary or incident to determining the feasibility or practicability of constructing a project, administrative and other expenses necessary to or incident to the construction of the project, including, but not limited to, costs of relocation and moving expenses according to a project plan developed by the City, and the financing of the construction of the project thereof, including reimbursement to any state or other governmental agency or any lessee of such project for the expenditures made with the approval of the City that would be costs of the project under this Chapter had they been made directly by the City, and any costs incurred after bond issuance by the City for audits or monitoring.
E. “ Qualified historic project” shall mean a project which includes the restoration or rehabilitation of a structure or structures designated as a City of Portland Historic Landmark. Such rehabilitation or restoration shall require the approval of the City of Portland Landmarks Commission to assure conformance with the Secretary of the Interior’s standards for historic preservation projects.
5.72.030 Economic Development - Applications.
A. The Portland Development Commission shall be responsible for receipt of applications and review and processing thereof. Applications shall be in a form established by the Portland Development Commission and shall include, in addition to other information deemed necessary by the Portland Development Commission:
1. Company/applicant information.
2. Project information.
3. Description of labor force at existing and proposed locations.
4. Financial information.
5. Environmental control information.
6. Any information required by law or otherwise which is reasonable and necessary to effectuate the purposes of this Chapter.
7. An agreement to indemnify and hold harmless the Portland Development Commission and the City of Portland, its officers and employees, from any and all liability for loss or damage to the company or any third person or entity arising from or alleged to have arisen from the processing of this application or any error or omission in any official statement or representation related to the contemplated financing.
B. The applicant must certify by letter that the issuance of revenue bonds is an inducement to locate, retain, or expand the project in Portland.
C. The requirements herein shall be considered to be minimums, and the Portland Development Commission and the City reserve the right to add additional requirements on a case-by-case basis. Likewise, the requirements herein stated pertain only to the Commission and the City and are not exclusive. Qualified bond counsel or the original purchaser may make additional requirements.
5.72.040 Economic Development -Initial Review, Standards.
A. Upon receipt of an application, the Portland Development Commission shall review the application to determine whether the application should be further processed. In reaching such a determination, the Portland Development Commission staff may request additional information from the applicant as well as assemble any and all data deemed relevant to the decision.
B. The Portland Development Commission shall consider the following:
1. Economic feasibility and general benefits to the City of the proposed project.
2. Density of use and potential impact in the area affected by the proposed project.
3. Land use, transit, and transportation facilities in the vicinity of the proposed project.
4. City’s ability to supply or support other needed services resulting from the Economic Development Project.
5. Effect of proposed project on balanced economic development of the City.
6. Employment and property tax income from the project.
7. Employment opportunities. City and Portland Development Commission will use employment agreements when and where appropriate.
8. Suitability of proposed area in the City for the particular type of proposed development project.
9. Conformance with Internal Revenue Service regulations and the Oregon Revised Statutes.
C. No application shall be recommended for City Council approval unless the Portland Development Commission determines that the proposed project does not conflict with adopted City plans and policies, and conforms to the following uses:
1. Manufacturing or other industrial production.
2. Agricultural development or food processing.
3. Transportation or freight facilities.
4. Warehousing or distribution.
5. A project for the primary purpose of reducing air, water, or solid waste pollution.
6. Other activities that represent new technology or types of economic enterprise that the City determines are needed to diversify the economic base of the community.
7. Parking in close proximity to the Portland Performing Arts Center. Such a parking facility may include space for retail and commercial uses in addition to parking.
8. Commercial uses when a part of a qualified historic project or publicly initiated urban development project.
5.72.050 Housing - Applications.
A. The Portland Development Commission shall be responsible for receipt of applications and review and processing thereof, including, but not limited to, advice of bond counsel and legal advice. Applications shall be in a form established by the Portland Development Commission and shall include, in addition to other information deemed necessary by the Portland Development Commission:
1. The applicant’s name, address and telephone number.
2. A brief description of the applicant’s company history and past relevant performance.
3. A legal description of the property upon which the project will be located.
4. A detailed description of the project including the number, size and type of dwelling units; dimensions of structures; parcel size, proposed lot coverage with buildings, and amount of open space; type of construction; public and private access; parking and circulation plans; water, sewer, and other utility plans; landscaping; expected uses; and economic feasibility studies and market information including rent levels proposed.
5. A description of the existing use of the property including a proposed relocation plan for any persons who would be displaced from existing housing by the project; and for any businesses which would be displaced.
6. A site plan and supporting maps, which show in detail the development plan of the entire project, showing streets, driveways, sidewalks, pedestrian ways, off-street parking and loading areas; location and dimension of structures; use of the land and structure; major landscaping features; design of structures; and existing and proposed utility systems including sanitary sewers, storm sewers, water, electric, gas and telephone lines.
7. Any other information required by law or otherwise which is reasonable and necessary to effectuate the purposes of this Chapter.
8. The approximate amount of bond proceeds and allocation to eligible costs.
9. An agreement to indemnify and hold harmless the Portland Development Commission and the City of Portland, its officers and employees, from any and all liability for loss or damage to the company or any third person or entity arising from or alleged to have arisen from the processing of this application or any error or omission in any official statement or representation related to the contemplated financing.
5.72.060 Housing - Initial Review, Standards.
A. Upon receipt of an application, the Portland Development Commission shall review the application to determine whether the application should be further processed. In reaching such a determination, the Commission may request additional information from the applicant as well as assemble any and all data deemed relevant to the decision.
B. The Portland Development Commission shall, after review and comment by all relevant City bureaus, recommend approval, approval with conditions, or denial of the application, after consideration of the following:
1. The economic feasibility of the project, with and without the use of revenue bonds.
2. The need for housing resulting from the project.
3. The general benefits to the City of the proposed project.
4. The City’s ability to supply or support other needed services required by the project.
5. Employment and property tax income from the project.
6. Suitability of the project as proposed in the specific proposed location.
7. (Amended by Ord. No. 157998; Nov. 21, 1985.) Projects applying for permanent financing must be determined to provide housing at rent or price levels 85 percent of which shall be affordable by households with incomes up to 150 percent of the area median income.
8. Projects in the downtown, particularly the RX Zone, designated urban renewal or redevelopment areas shall receive highest priority.
9. Conformance with Internal Revenue Service Regulations and the Oregon Revised Statutes.
10. No application shall be recommended for approval unless the Portland Development Commission, after review and comment by all relevant City bureaus, determines that the project does not conflict with adopted City plans and policies.
11. Projects applying for construction financing may be at rent or price levels up to 150 percent of median income, but must have available a firm commitment for long-term project financing.
C. No project may be approved which would result in the conversion of existing occupied residential rental units to condominium or cooperative projects.
D. The applicant, to be eligible for financing assistance under this program, must agree not to discriminate against any purchaser or tenant who is a parent or legal guardian with whom a child resides or is expected to reside, except in projects designed exclusively for households, the heads of whom are over 62 years of age.
E. Revenue bonds may be issued secured by revenues from mortgage payments from individual owners of condominium and cooperative units within multiple unit housing projects which are newly constructed, rehabilitated from other uses or rehabilitated in abandoned residential buildings. Applications for such projects shall be considered by the Portland Development Commission if:
1. No individual or company may have more than one loan outstanding at any one time under this program for individual condominium or cooperative units.
2. No mortgage loan funds under this program may be used for refinancing by existing owners, and no loans may be assumed by persons not eligible for condominium or cooperative units.
F. The applicant shall submit a relocation plan for any households, individuals, or businesses which may be displaced by the proposed project. The Portland Development Commission will be responsible for analysis of that proposal and recommendation of that plan, that plan with amendments, or an alternative plan. The relocation plan shall assure that such households, individuals, or businesses are relocated to affordable housing of comparable or better quality.
5.72.070 Initial Determination of Eligibility, Final Approval, Appeals.
A. The Portland Development Commission staff, within 60 days after a complete application is filed with the Commission, shall prepare a written recommendation of approval, approval with conditions or denial of the application.
B. If Portland Development Commission staff recommends approval or approval with conditions of the application, the Commission shall, within 60 days of receipt of the application and recommendation, recommend by resolution that City Council approve, approve with conditions, or deny the application. This resolution shall include consideration of any required relocation plan. The Council shall, by resolution, approve, approve with conditions, or deny the application. Council approval or conditional approval of an application shall authorize the Portland Development Commission to process the application and to execute a letter of intent with the applicant.
C. Final approval shall take place after receipt and review by the Portland Development Commission of all requested and required final documents. All documents to be approved by the Portland Development Commission must be received in final form and received by the Commission l4 days prior to a scheduled Commission meeting. If the Commission determines that the
documents comply with the rules and policies established within this Chapter, the Commission shall, by resolution, recommend issuance of the bonds in accordance with those final documents and further recommend that City Council adopt an ordinance authorizing issuance of the bonds in accordance with those documents.
D. If the Portland Development Commission staff recommends denial of the application, they shall notify the applicant in writing. The applicant may appeal by filing written notice thereof with the Portland Development Commission staff within l4 days of receipt of the notice of rejection. Upon receipt of the appeal, the Portland Development Commission shall, within 45 days, recommend by resolution, approval, approval with conditions or denial of the appeal.
5.72.080 General Conditions; Document Preparation and Review.
(Amended by Ord. No. 166682, June 30, 1993.)
A. The following general conditions prevail in the issuance of all industrial development revenue bonds:
1. City of Portland economic development revenue bonds may be sold at public or private sale, and the bonds may mature at any time or times within the useful life of the project. For public sales, special approval may be required.
2. Any bond authorized under this Chapter which is to be sold by public sale must be rated by either a nationally recognized rating agency as Investment Grade.
3. Bonds sold through a private sale do not require a rating. For purposes of this Chapter, “private sale” means a sale of all of the bonds to persons or entities that qualify as “accredited investors” under 15 USC Section 77b (15) (I) or 17 CFR Section 230.215. The purchasers must also certify, in a manner satisfactory to the City, that they have the financial sophistication, knowledge and experience in financial matters to evaluate the investment in the bonds and the appropriateness of that investment for them, and that they have received all the information required to make an informed judgement about the purchase of the bonds. Bonds which are sold through a private sale may be resold or transferred only to persons or entities that qualify as accredited investors and that provide the certification described in the preceding sentence.
4. The City of Portland does not guarantee the bonds and is not subject to any liability for their repayment.
5. The terms and conditions of the issuance and purchase of an industrial revenue bond issue are to be agreed upon by the applicant and bond purchaser with the concurrence of the Portland Development Commission (acting on behalf of the City.)
6. Where residential rental property is assisted under this Chapter, construction of the project must begin within 9 months from the date of bond issuance.
7. Applicant will be required to keep the Portland Development Commission advised of the schedule for document preparation and approval, and to provide drafts of documents to the Commission upon request of the Commission.
B. The following general conditions prevail regarding the preparation of all bond documents:
1. Bond counsel will be designated by the Portland Development Commission. Procedures for selecting bond counsel established by Section 5.68.080 of this Code shall not apply to projects initiated pursuant to this Chapter. The applicant will submit their recommendation of bond counsel.
2. Bond counsel will advise the Portland Development Commission of all federal and state procedural requirements as they apply to issuance of the bonds.
3. Bond counsel must be an Oregon law firm or other mutually acceptable bond counsel recognized in the Bond Buyers Directory of Municipal Bond Dealers of the United States.
4. The trustee chosen by the applicant, and approved by the Commission, must be a bank or trust company doing business in the State of Oregon with trust powers.
5. All documents to be approved by the Portland Development Commission must be in final form and received by the Portland Development Commission l4 days before the Commission meeting at which it will be acted upon.
5.72.090 Application Processing, Financial Considerations.
A. Upon receipt of a resolution approving the application, the Portland Development Commission shall consider:
1. The bond market for the types of bonds proposed for issuance.
2. The terms and conditions of the proposed issue.
3. Whether the applicant is financially responsible and fully capable and willing to fulfill its obligations under the agreement of lease, or contract, including the obligation to pay rent in the amounts and at the times required, the obligation to operate, repair and maintain at its own expense the project leased, or sold, and to serve the purposes of this Chapter and such other responsibilities as may be imposed under the lease or contract. In determining financial responsibility of the applicant consideration shall be given to the lessee’s or purchaser’s ratio of current assets to current liabilities, net worth, earning trends, coverage of all fixed charges, the nature of the industry or business involved, its inherent stability, any guarantee of the obligations by some other financially responsible corporation, firm or person, and other factors determinative of the capability of the lessee or purchaser, financially and otherwise, to fulfill its obligations consistently with the purposes of this Chapter and Chapter 772, Oregon Laws of 1977 (ORS 280.410 to 280.485.)
4. Such other relevant factors as the Development Commission considers necessary to protect the financial integrity of the City.
If the Development Commission shall determine that a bond issue is financially feasible it shall designate the underwriter, trustee and bond counsel and shall enter into appropriate agreements with each to carry out the provisions of this Chapter and Chapter 772, Oregon Laws of 1977 (ORS 280.410 to 280.485) subject to the approval of the Council pursuant to Section 5.72.110 of this Chapter. In reaching its determination, the Development Commission may appoint a Bond Review Committee to assist it in its deliberations, and may set administrative procedures from time to time as necessary.
5.72.100 Administrative Fees.
(Amended by Ord. No. 160540, 160608; and 166996, Sept. 29, 1993.)
A. The applicant agrees to pay all applicable City and Portland Development fees and expenses associated with the application whether or not the bonds are issued. A minimum application fee of $500 shall be assessed to all projects at the time of filing the formal application with the Commission. In addition, the Commission shall be reimbursed in full for all direct and indirect costs incurred in the project. The fees shall be paid as follows:
1. $500 at the time of filing a formal application with the Portland Development Commission.
2. The balance at the time of closing of the bond issue. In the event the financing is not completed, costs incurred to date by the Commission shall be subject to immediate reimbursement.
B. Upon issuance of the bond, the applicant will pay the Portland Development Commission a one-time issuance fee equal to seven dollars per 1,000 dollars of the face amount of the bonds for ongoing administration of the bonds. On bonds issued prior to March 23, 1988, the annual administration fee will henceforth be seventy-five cents per 1,000 dollars of the outstanding principal, billed yearly in advance. On bonds issued prior to March 23, 1988, the Portland Development Commission and applicants of outstanding issues may enter into an agreement to pay a one-time fee in lieu of the annual administration fee.
1. For refunding bonds issued under ORS Chapter 290 for economic development projects, if the one-time issuance fee has been paid in accordance with subsection (b) for the bonds being refunded, and the Portland Development Commission determines the refunding will not generate additional ongoing administration costs, the fee or an equitable portion thereof may be waived. Nothing in this subsection (1), however, should be construed to eliminate or limit the applicant’s responsibility to pay all fees and expenses of the City and the Portland Development Commission described in subsection (a) of this section in connection with issuing the refunding bonds.
5.72.110 Bond Issuance.
Upon receipt of the recommendation of the Portland Development Commission, the Council may by ordinance authorize the issuance of bonds in an amount equal to the costs of the proposed project, pursuant to Chapter 772, Oregon Laws of 1977, if it determines that the proposed issue meets the requirements of said Act and this Chapter.
5.72.l20 Reporting Requirements.
A. Beginning no later than l2 months following the issuance of bonds by the City, and continuing annually for a period as long as the bonds are outstanding, the Portland Development Commission shall require each project owner of the assisted project to submit a written report which describes:
1. Number of current employees by job category.
2. Total assessed value and property taxes paid during the most recent period for the assisted facility or facilities.
B. In addition to the foregoing, owners of multi-family projects assisted under this Chapter are required to report annually the number of residential units occupied by individuals or families who, at the date of reporting, have low or moderate incomes.
Chapter 5.74
ACQUISITION OF ART
(Replaced by Ord. No. 161537, amended by
Ord. No. 168591, Mar. 8, 1995.)
Sections:
5.74.010 Purpose.
5.74.020 Definitions.
5.74.030 Dedication.
5.74.040 Public Art Trust Fund.
5.74.050 Disbursements.
5.74.060 Sitting.
5.74.070 Guidelines.
5.74.080 Ownership.
5.74.090 Decisions.
5.74.100 Implementation.
5.74.010 Purpose.
It is the purpose of this Chapter and the policy of the City of Portland to dedicate 1.33% of the Total Costs of all Improvement Projects to the selection, acquisition, siting, maintenance, administration, Deaccessioning, community education and registration of Public Art.
5.74.020 Definitions.
A. As used in this Chapter:
1. Improvement Project means any project paid for wholly or in part by the Participating Bureau in which the Participating Bureau’s contribution equals $100,000 or more, involving construction, rehabilitation, remodeling or improvement of any building, structure, park, public utility, street, sidewalk or parking facility or any portion thereof within the limits of the City of Portland.
2. Improvement Projects funded by the following revenue sources are exempt from the requirements of this Chapter: private development revenue, federal and state grants, Street Light Levy Fund and Local Improvement District revenue, Water Operating Fund, Water Construction Fund, Sewer Systems Operating Fund and Sewer Systems Construction Fund.
3. Improvement Projects which are developed privately and leased back to the City of Portland are not exempt from the requirements of this Chapter.
B. Total Costs means the Participating Bureau’s contribution toward the price for completion of the Improvement Project. Total Costs does not include costs for: design and engineering, administration, fees and permits, building demolition, relocation of tenants, contingency funds, land acquisition, environmental testing or indirect costs, such as interest during construction, advertising and legal fees.
C. Public Art means original visual creations which are sited in a manner accessible to the public and/or public employees.
D. Public Art Trust Fund means the fund within the Regional Arts and Cultural Council into which all monetary contributions derived from Improvement Projects pursuant to this Chapter shall be deposited. Monetary contributions for Public Art originating from any other source shall also be deposited into the Public Art Trust Fund. The Public Art Trust Fund shall be divided into separate accounts if separate accounting is requested by the Participating Bureau.
E. Participating Bureau means a City of Portland Bureau or Commission that is subject to this Chapter by virtue of its sponsorship of an Improvement Project.
F. Selection Committee means the committee responsible for reviewing proposed Public Art and making recommendations to the Regional Arts and Cultural Council on the selection of Public Art. The Selection Committee shall be composed of a representative of the Participating Bureau, the Improvement Project architect or engineer, artists, a citizen and a Regional Arts and Cultural Council board member.
G. Deaccessioning means relinquishing title to a work of Public Art.
5.74.030 Dedication.
Any City of Portland official or employee acting on behalf of a Participating Bureau who authorizes or appropriates expenditures for Improvement Projects of the Participating Bureau shall include in the capital improvement program of the City’s capital budget a monetary contribution for Public Art equal to 1.33% of the Total Costs of the Improvement Project. If funding for a particular Improvement Project is subject to legal restrictions that preclude Public Art as an object for expenditure, the portion of the Improvement Project that is funded with the restricted funds shall be exempt from the requirements of this Chapter.
5.74.040 Public Art Trust Fund.
The Regional Arts and Cultural Council shall maintain a special fund called the Public Art Trust Fund into which monetary contributions for Public Art shall be deposited.
A. 1.33 percent of the Total Costs of Improvement Projects shall be dedicated to Public Art and shall be deposited into the Public Art Trust Fund by the City official or employee acting on behalf of the Participating Bureau.
1. One percent of the Total Costs of Improvement Projects shall be used by the Regional Arts and Cultural Council for costs associated with Public Art including, but not limited to the acquisition, siting, maintenance and Deaccessioning of Public Art.
2. .33 percent of the Total Costs of Improvement Projects shall be used by the Regional Arts and Cultural Council for costs associated with Public Art, including, but not limited to costs of selection, administration, community education and registration of Public Art.
B. Monetary contributions shall be deposited in separate accounts within the Public Art Trust Fund if separate accounting is requested by the Participating Bureau or required by law.
5.74.050 Disbursements.
Disbursements from the Public Art Trust Fund shall be made by the Regional Arts Cultural Council.
A. Disbursements shall be made according to the terms of this Chapter and any guidelines adopted hereunder.
B. If an Improvement Project is funded by revenue sources whose expenditure is restricted by the City Charter or other law, the Regional Arts Cultural Council, prior to making a disbursement for Public Art from such a restricted account in the Public Art Trust Fund, shall adopt written findings demonstrating that the proposed disbursement complies with all applicable restrictions.
C. The Regional Arts Cultural Council will report annually to Participating Bureaus on the disbursement of money from the Public Art Trust Fund.
5.74.060 Siting.
Public Art selected pursuant to this Chapter may be sited in, on or about any Improvement Project or other property owned, leased, or rented by or to the City of Portland in accordance with any restrictions placed on siting by the Participating Bureau.
5.74.070 Guidelines.
The Regional Arts Cultural Council shall, after consultation with Participating Bureaus, adopt guidelines to:
A. Provide for annual meetings with Participating Bureaus;
B. Develop an annual plan for Public Art that takes into account the views of the Participating Bureau;
C. Provide a method for the appointment of representatives to Selection Committees;
D. Determine a method or methods of selecting and contracting with artists for the design, execution and siting of Public Art;
E. Determine the dedication and disbursement process for the Public Art Trust Fund;
F. Clarify the responsibilities for maintenance of Public Art, including any extraordinary operations or maintenance costs associated with Public Art, prior to selection;
G. Facilitate the preservation of art objects, ethnic and cultural arts and crafts, and artifacts;
H. Determine a process to Deaccession art;
I. Set forth any other matter appropriate to the administration of this Chapter.
5.74.080 Ownership.
All Public Art acquired pursuant to this Chapter shall be acquired in the name of the City of Portland, and title shall vest in the City of Portland.
5.74.090 Decisions.
Except as limited by other sections of this Chapter, the Regional Arts Cultural Council’s decisions as to the selection, acquisition, siting, maintenance, disbursement of the Public Art Trust Fund, Deaccessioning, administration, community education and registration of Public Art shall be final.
5.74.100 Implementation.
The Regional Arts Cultural Council, or its designee, shall implement the provisions of this Chapter.
CHAPTER 5.75
CLAIMS UNDER OREGON
CONSTITUTION ARTICLE I, SECTION 18,
SUBSECTIONS (a) THROUGH (f)
(Added by Ordinance No. 175123,
effective November 29, 2000.)
Sections:
5.75.010 Purpose.
5.75.020 Definitions.
5.75.030 Claim for Compensation.
5.75.040 Form of Claim.
5.75.050 Amount of Claim Processing Fee.
5.75.060 Claim Completeness and Acceptance for Filing.
5.75.070 Scheduling and Notice of City Council Hearing.
5.75.080 City Council Hearing and Action.
5.75.010 Purpose.
The purpose of this Chapter is to establish a procedure by which owners of private real property located within the City of Portland can file claims pursuant to Oregon Constitution Article I, section 18, subsections (a) through (f); to identify facts relevant to evaluation of claims and to provide for consideration of claims by the City Council.
5.75.020 Definitions.
Words used in this Chapter, that are the same as words used in Oregon Constitution Article I, section 18, subsections (a) through (f), shall have the same meaning as the words used in those subsections of the Oregon Constitution.
5.75.030 Claim for Compensation.
An owner of private real property located within the City of Portland who believes the owner is entitled to compensation under Oregon Constitution Article I, section 18, subsections (a) through (f), in relation to a City regulation may make a claim for that compensation as provided in this Chapter. A separate claim must be submitted for each regulation which the owner asserts restricts the use of a property as provided in Oregon Constitution Article I, section 18, subsections (a) through (f). If an owner wishes to assert that more than one regulation restricts use of the property, all claims regarding that property must be filed simultaneously. Separate claims must be submitted for properties that are not contiguous.
5.75.040 Form of Claim.
A claim for compensation under section 5.75.030 shall be filed with the City Auditor, on a completed claim form established by the City Auditor. A claim shall include the following information:
A. A detailed description of the private real property as to which the owner is claiming compensation, including the common address and either a legal metes and bounds description or a County Tax Assessor’s description of the property if the claim relates to land, and specifically identifying whether the claim relates to real property other than land or to a portion of the ownership less than fee simple absolute;
B. The name, address, and telephone number of each owner of and security interest holder in the private real property, together with the signature of the claimant making the claim and the signature of every other owner or security interest holder;
C. A detailed description of the ownership interest held by the claimant and all other owners, and a detailed description of any security interest held by any person, including identification of whether the property interest that is subject to restriction is held or shared by other persons;
D. If the property is owned by more than one person, each owner must certify that any compensation paid under Oregon Constitution Article I, section 18, subsections (a) through (f) may be paid to the person filing the claim for compensation;
E. The date on which the claim is submitted to the Auditor;
F. The date each owner or interest holder acquired ownership of or an interest in the private real property;
G. A title report, current within 30 days prior to the claim date, verifying the ownership or interests in the private real property and documenting the date on which the ownership or interest was acquired;
H. Identification of any other contiguous properties in which any of the owners have a property interest;
I. The specific regulation as to which the owner is claiming compensation, including the date the regulation was adopted, first enforced, or applied;
J. The manner in which, and the extent to which, the regulation restricts the use of the private real property as to which the owner is claiming compensation, including a statement identifying whether the claim is based upon adoption of the regulation, first enforcement of the regulation, or application of the regulation;
1. If the claim is based upon adoption of a regulation, the date on which the regulation was adopted;
2. If the claim is based upon first enforcement of a regulation, the date on which first enforcement occurred and evidence supporting the owner’s assertion that the regulation had not previously been enforced against that property;
3. If the claim is based upon application of a regulation, the date and manner of such application and evidence identifying the point in time before which the regulation applied to the property;
K. An appraisal of the private real property as to which the owner or owners are asserting a claim for compensation, prepared by a person certified or licensed under Oregon law to perform an appraisal on the type of private real property that is the subject of the claim. The appraisal must include: (1) the appraiser’s opinion of the fair market value of the private real property on the day before application of the regulation at issue and the day after application of the regulation; (2) the appraiser’s opinion of the effect the regulation at issue had itself on the fair market value of the property; (3) the appraiser’s opinion of the effect on the real market value of the property due to the net cost to the landowner of an affirmative obligation, if any, imposed by the regulation to protect, provide, or preserve wildlife habitat, natural areas, wetlands, ecosystems, scenery, open space, historical, archaeological or cultural resources, or low income housing, and (4) the evidence on which the appraiser’s opinions are based;
L. The amount the owner claims as compensation under Oregon Constitution Article I, section 18, subsections (a) through (f);
M. A statement identifying whether the property is being used for any purpose historically and commonly recognized as a nuisance or is used for the purpose of selling pornography, performing nude dancing, selling alcoholic beverages or other controlled substances, or operating a casino or gaming parlor;
N. Payment of the claim processing fee; and
O. Although not part of the required information, the owner is encouraged to notify all owners of property within 400 feet of the boundaries of the real property for which the claim is asserted.
5.75.050 Amount of Claim Processing Fee.
A claim must include a claim fee, in the amount established by resolution of the City Council, to cover the City’s cost of processing the claim.
5.75.060 Claim Completeness and Acceptance for Filing.
A claim shall not be deemed filed with the City until it is complete in accord with the provisions of sections 5.75.030 through 5.75.050. Within 14 calendar days following receipt of a claim under section 5.75.030, the Auditor shall review the claim to determine whether it is complete and ready for filing. Thereafter:
A. If the Auditor determines the claim is not complete, he or she shall, within that 14 day period, inform the applying owner in writing of the additional information necessary to make the claim complete and ready for filing. The claim shall not be deemed complete and filed until the date all of the additional information is received and determined by the Auditor to meet the requirements of this Chapter.
B. If the Auditor determines the claim is complete as initially filed, or if he or she fails to notify the applying owner of the claim’s incompleteness within the required 14 day period, then the claim shall be deemed complete and filed as of the date of 14 days after it was submitted to the Auditor.
C. The date on which the claim is determined to be complete and filed shall be noted in writing on the face of the claim.
5.75.070 Scheduling and Notice of City Council Hearing.
The Auditor shall schedule a City Council public hearing on the claim for compensation. In addition, the Auditor shall give notice of the public hearing to the owners of record of property within 400 feet from the exterior boundary of the private real property as to which the owner is applying for compensation as reflected on the most recent property tax assessment roll; and to any neighborhood or community organization recognized by the City Council and whose boundaries include the private real property as to which the owner is applying for compensation, or whose boundaries are within 1,000 feet of the property.
5.75.080 City Council Hearing and Action.
The City Council shall hold a public hearing on the claim for compensation. The hearing shall be legislative in nature. Factors the Council may consider include but are not limited to comparing the public benefits of the regulation to the public burden of paying compensation, taking into consideration the financial resources of the City for the payment of such claims. Actions the Council may take include, but are not limited to: (1) granting or denying, in whole or in part, the claim for compensation; (2) in lieu of compensation, choosing to not apply the regulation to the property in whatever lawful manner the Council deems appropriate; (3) such other relief as the Council deems appropriate.