69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1836

                         House Bill 2911

Sponsored by COMMITTEE ON GENERAL GOVERNMENT (at the request of
  Associated General Contractors)


                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Imposes certain cost accounting requirements upon public
agencies making least cost determinations for public
improvements.

                        A BILL FOR AN ACT
Relating to public contracting; amending ORS 279.023.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 279.023 is amended to read:
  279.023. (1) It is the policy of the State of Oregon that
public agencies shall make every effort to construct public
improvements at the least cost to the public agency { +  by
comparing the public agency's estimated costs to the costs of
having the public improvements constructed by a private
contractor + }.
  (2) Not less than 30 days prior to adoption of its budget for
the subsequent budget period, each public agency shall prepare
and file with the Commissioner of the Bureau of Labor and
Industries a list of every public improvement known to the agency
that the agency plans to fund in the budget period, identifying
each improvement by name and estimating the total on-site
construction costs. The list shall also contain a statement as to
whether the agency intends to perform the construction by a
private contractor. If the agency intends to perform construction
work using the agency's own equipment and personnel on a project
estimated to cost more than $50,000, then the   { - agency shall
also - }  { + agency's estimate shall include all direct and
indirect costs that the public agency will incur in performing
the construction of the public improvement, as identified by the
public agency's model cost accounting system referred to in ORS
279.061, to + } show that its decision conforms to the policy
stated in subsection (1) of this section. The list is a public
record and may be revised periodically by the agency.
  (3) Before a public agency constructs a public improvement with
its own equipment or personnel:
  (a) If the estimated cost exceeds $50,000, the public agency
shall prepare adequate plans and specifications and the estimated
unit cost of each classification of work { + , including all
direct and indirect costs identified by the public agency's model
cost accounting system referred to in ORS 279.061 + }. The
estimated cost of the work shall include a reasonable allowance
for the cost, including investment cost, of any equipment used.
As used in this paragraph, 'adequate' means sufficient to control
the performance of the work and to assure satisfactory quality of
construction by the public agency personnel.
   { +  (b) If the estimated cost exceeds $50,000, the public
agency shall provide for an independent written evaluation of its
decision to perform construction using the agency's own equipment
and personnel, and for independent administration and inspection
of its performance of the construction work. As used in this
paragraph, 'independent' means a person that is not a public
agency, is not employed by a public agency and is not transacting
business with the public agency whose decision is being
evaluated. + }
    { - (b) - }   { + (c) + } The public agency shall cause to be
kept and preserved a full, true and accurate account of the costs
of performing the work, including all engineering and
administrative expenses and the cost, including investment costs,
of any equipment used. The final account of the costs shall be a
public record.
   { +  (4) If a public agency violates any provision of
subsection (2) or (3) of this section, or if the agency's final
account of the costs of the public improvement exceeds the
agency's estimate, then the public agency must comply with
subsection (3) of this section for all public improvements of the
public agency for the agency's next two budget periods. + }
    { - (4) - }   { + (5) + } Subsections (2) and (3) of this
section do not apply to any public agency when the public
improvement is to be used for the distribution or transmission of
electric power.
    { - (5) - }   { + (6) + } For purposes of this section,
resurfacing of highways, roads or streets at a depth of two or
more inches and at an estimated cost that exceeds $50,000 is a
public improvement.
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