(Replaced by Ordinance No. 187974; amended by Ordinance No. 189878, effective March 4, 2020.)
A. If the City determines at any time during the term of a contract that a contractor to which the City awarded the contract on the basis described in ORS 279A.107 (1), or a subcontractor to which the contractor awarded a subcontract in connection with the contract on the basis described in ORS 279A.107 (1), is no longer certified, the City may:
1. Terminate the contract;
2. Require the contractor to terminate the subcontract; or
3. Exercise any of the remedies for breach of contract that are reserved in the contract.
B. Notwithstanding the scope of ORS 200.055 et seq., Section 5.33.540 applies to all projects, including, but not limited to, contracts, loans, grants, development agreements, and any other City-owned, City-sponsored or City-funded project.
C. The City may investigate complaints alleging one or more of the following violations of ORS 200.065:
1. Fraudulently obtaining or retaining certification as COBID Certified Firm;
2. Attempting to fraudulently obtain or retain certification as a COBID Certified Firm;
3. Aiding another person to fraudulently obtain or retain certification as a COBID Certified Firm;
4. Aiding another person to attempt to fraudulently obtain or retain certification as a COBID Certified Firm; or
5. Knowingly making a false claim that any person is qualified for certification or is certified under ORS 200.055 (Certification of COBID Certified Firm) for the purpose of gaining a contract or subcontract or other benefit.
D. When the City investigates a complaint that a person has violated ORS 200.065, the City may require any additional information, and through the City Attorney’s Office, administer oaths, take depositions and issue subpoenas to compel witnesses to attend and to produce books, papers, records, memoranda or other information necessary for the City to complete its investigation. If a person fails to comply with any subpoena that the City issues under its investigation. If a person fails to comply with any subpoena that the City issues under ORS 200.065 or refuses to testify on any matter on which a person may lawfully be interrogated, the City shall follow the procedure provided in ORS 183.440 to compel compliance.
E. The City may issue the following sanctions against any person for violating ORS 200.065:
1. Withholding payment;
2. Suspending or terminating a public contract;
3. Impose a civil penalty not to exceed 10 percent of the contract or subcontract price or $5,000, whichever is less, for each violation; and
4. Disqualifying for up to 3 years from submitting a bid or proposal for, or receiving an award of, a public contract.
F. The City may also disqualify any person from bidding or participating in a public contract for a period of up to 3 years;
1. Who under oath during the course of an investigation admits to violating ORS 200.065(1) or (2); or
2. Upon notice of a finding of fraudulent certification by the Certification Office for Business Inclusion and Diversity or other public contracting agency.
G. Any bidder, proposer, contractor or subcontractor on a City contract that knowingly commits any of the following acts shall have its right to submit a bid or proposal for, or receive an award of, a City contract in the future suspended under ORS 200.075:
1. Entering into any agreement to represent that a COBID Certified Firm certified under ORS 200.055 will perform work or supply material under a public improvement contract without the knowledge and consent of the disadvantaged, minority, woman, service-disabled veteran, or emerging small business enterprise.
2. Exercising or permitting another bidder, proposer, contractor or subcontractor to exercise management and decision making control over the internal operations of a COBID Certified Firm other than the bidder’s, proposer’s, contractor’s or subcontractor’s own business enterprise. As used in this paragraph, “internal operations” does not include normal scheduling, coordination, execution or performance as a subcontractor on a public contract.
3. Using a disadvantaged, minority, woman, service-disabled veteran, or emerging small business enterprise to perform a public contract or subcontract or to supply material under a public contract to meet an established goal or requirement if the COBID Certified Firm does not perform a Commercially Useful Function in carrying out its responsibilities and obligations under the public contract.
4. Failing to perform a Commercially Useful Function in performing a public contract or subcontract or in supplying material to a contractor or subcontractor that is performing a public contract if the bidder, proposer, contractor or subcontractor is presented as a COBID Certified Firm to meet an established goal or requirement.
H. The suspension shall be one year for a first violation, 3 years for a second violation and 5 years for a third violation. Each violation must remain on record for 5 years. After 5 years the City may not consider the violation in reviewing future violations.
I. Prior to suspending, disqualifying or otherwise sanctioning a person under Section 5.33.540, the City shall provide written notice to the person of a proposed sanction under ORS 200.065 or ORS 200.075, served personally or by registered or certified mail, return receipt requested. This notice shall include:
1. That the City intends to sanction;
2. The effective date and period of the sanction, if applicable;
3. The reason(s) for the sanction; and
4. That the person has the right to request a hearing before the Code Hearings Officer in accordance with Section 3.130.020.
J. The hearing shall be conducted in accordance with Chapter 22.10 and any administrative rules governing appeals to the Code Hearings Officer.