§ 36.09 EXEMPTIONS FROM PROCUREMENT REQUIREMENTS.
   (A)   Specific exemptions. The following classes of contracts are exempt from the procurement requirements otherwise provided in §§ 36.06 through 36.08:
      (1)   Interagency contracts. Contracts made with other public agencies or the federal government.
      (2)   Nonprofit contracts. Contracts made with qualified nonprofit agencies providing employment opportunities for disabled individuals.
      (3)   Repairs. Contracts for equipment repair or overhaul if:
         (a)   The service or parts required are unknown and the cost cannot be determined without extensive preliminary dismantling or testing; or
         (b)   The service or parts required are for sophisticated equipment for which specially trained personnel are required and such personnel are available from only one source; or
         (c)   The service or parts required are known and available from a sole, specific source to match existing equipment.
      (4)   Regulated price goods. Contracts for the direct purchase of goods or services where the rate or price for the goods or services being purchased is established by federal, state or local regulatory authority.
      (5)   Periodicals. Contracts for subscriptions for periodicals, including journals, magazines, and similar publications.
      (6)   Used personal property. Contracts for the purchase of used personal property if the City Manager determines that the award of the contract without competitive bidding will result in cost savings.
      (7)   Investments. Contracts for the investing of public funds or the borrowing of funds by the city when the investment or borrowing is contracted under the duly enacted statute, ordinance, charter, or constitutional provision.
      (8)   Contract amendments. Contract amendment for additional work, including change orders, extra work, field orders, or other changes in the original specifications which increases the original contract price if:
         (a)   The original contract was let by competitive bidding, unit prices or bid alternatives were provided that established the cost for additional work, and a binding obligation exists on the parties covering the terms and conditions of the additional work; or
         (b)   The amount of the aggregate cost increase resulting from all amendments does not exceed 20% of the initial contract. Contracts for the renovation or remodeling of buildings may have aggregate amendments not exceeding 33% of the initial contract. Amendments made pursuant to division (a) above are not included in computing these aggregate amounts.
      (9)   Copyrighted materials. Contracts for the purchase of copy-righted materials where there is only 1 known supplier available for such material.
      (10)   Requirements contracts. Contracts for the purchase of requirements for an anticipated need at a predetermined price if:
         (a)   The contract is let by a competitive procurement process; and
         (b)   The term of the contract including renewals does not exceed 3 years. When the price of goods and services has been established by a requirements contract under these provisions, the City Manager may purchase the goods and services from the supplier without subsequent competitive bidding.
      (11)   Insurance. Contracts for the purchase of employee benefit plans.
      (12)   Computer and telecommunications hardware and software. Contracts for the acquisition of data and word processing or telecommunications systems hardware and systems software.
      (13)   Telecommunication services. Contracts for telecommunications services, subject to the provisions of O.A.R. 125-320-025.
      (14)   Copier and fax equipment. Contracts for the purchase or lease of office copiers and telefax equipment. The city may enter into multiple price agreements or requirements contracts for either the purchase or lease of office copying and telefax equipment. The agreements shall conform with the limitations on requirements contracts set out above. In exercising this exception, the City Manager shall fully consider the operating capabilities, limitations, and cost of each brand or model and select that brand which will produce the best combination of performance and cost per copy or transmission.
      (15)   Works of art. Contracts for the purchasing or commissioning of works of art.
      (16)   Goods for resale. Contracts for goods purchased for resale to consumers.
      (17)   Existing public agency contracts. Contracts between public agencies utilizing an existing solicitation or current requirement contract of 1 of the public agencies that is a party to the contract for which the original contract met the requirements of O.R.S. Chapter 279, the contract allows other public agency usage of the contract, and the original contracting public agency concurs.
      (18)   Temporary employment. Contracts with temporary service or employment agencies.
      (19)   Real property. Acquisition or disposal of real property or interest in real property.
   (B)   Sole source procurement. Pursuant to O.R.S. 279B.075(1), the City Manager may award a contract for goods or services without competition when he or she determines in writing, based on written findings described in this section, that the goods or services, or class of goods or services, are available from only 1 source. To the extent reasonably practical, the city shall negotiate with the sole source to obtain contract terms advantageous to the city. The solicitation and selection of a sole source provider shall be documented in writing and based on 1 or more of the following findings required by O.R.S. 279B.075(2), and otherwise be processed in accordance with O.A.R. 137-047-0275:
      (1)   That the efficient utilization of existing goods requires the acquisition of compatible goods or services.
      (2)   That the goods or services required for the exchange of software or data with other public or private agencies are available from only 1 source.
      (3)   That the goods or services are for use in a pilot or an experimental project.
      (4)   Other findings that support the conclusion that the goods or services are available from only 1 source.
   (C)   Emergency procurement. The Mayor, or Council President in the absence of the Mayor, may make or authorize others to make emergency procurement of goods or services in an emergency in an amount not to exceed $50,000 without using competitive procurement procedures. The solicitation and selection of a contractor in an emergency situation shall be documented in writing and based 1 or more of the following findings:
      (1)   The solicitation and selection of a contractor in an emergency situation shall be documented in writing, including a written explanation of the nature of the emergency and the method used for the selection of the particular contractor.
      (2)   A majority of the City Council must concur that an emergency exists.
   (D)   General class and individual contract exemption. The City Council may exempt a public improvement contract or a class of public improvement contracts from competitive bidding upon approval of written findings described below. Exemption under this section shall occur only after a public hearing before the City Council noticed by posting and publication at least 14 days before the hearing:
      (1)   Required findings:
         (a)   It is unlikely that the exemption will encourage favoritism in the awarding of public improvement contracts or substantially diminish competition for public improvement contracts; and
         (b)   The awarding of public improvement contracts under the exemption will result in substantial cost savings to the city.
      (2)   In granting an exemption under this section, the city shall, when appropriate, use alternate contracting methods that take account of market realities and modern practices and are consistent with the public policy of encouraging competition.
      (3)   A public improvement contract may be exempted from competitive bidding if emergency conditions require prompt execution of the contract. If the city declares an emergency, any contract awarded under this section must be awarded within 60 days following declaration of the emergency.
      (4)   An exemption under this section may authorize or require the award of a public improvement contract by competitive proposals. A contract awarded under this section may be amended only upon approval of the Mayor.
(Ord. 2013-08-02, passed 8-13-2013)