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ENLARGE
The main taxiway at Roseburg Regional Airport that is to be replaced with the help of local subcontractors in years to come.
So you know ...
The News-Review is taking a closer look at how the city of Roseburg obtains goods and services for city projects and how that affects local businesses. The two-part series began Sunday and continues today.
Sunday: How the city first considered an out-of-town business to provide a $150,000 phone system for the new Public Safety Center and then reconsidered that choice.
Today: A bigger-picture look at how the city chooses contractors and suppliers for city projects and whether anything can — or should — be done to help local businesses more.
Sunday: How the city first considered an out-of-town business to provide a $150,000 phone system for the new Public Safety Center and then reconsidered that choice.
Today: A bigger-picture look at how the city chooses contractors and suppliers for city projects and whether anything can — or should — be done to help local businesses more.
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ENLARGE
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The new Roseburg Public Safety Center remains under construction. Seventeen local subcontractors have helped to build the $18 million facility.
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The Roseburg City Council recently considered hiring an out-of-town contractor to install a $150,000 telecommunications system in the city's new Public Safety Center.
But objections from councilors, a local businessman who hadn't had a chance to offer his services for the work and local business people led the city to reconsider.
Ultimately, a local business got the work, and for less money than what the out-of-town company had proposed.
But the telecommunications system purchase was not the first time the city has considered turning to out-of-town contractors, says Mel Cheney, executive director of the Community Cancer Center and a former city councilor.
When he was on the council, “we frequently went outside of Roseburg when vendors capable of providing goods and services were here,” he claims.
Roseburg City Manager Eric Swanson disputes that contention, pointing to how the city recently changed its Request for Proposal process to address concerns raised by local engineering firms.
The firms approached Swanson and said they wanted a chance to work on planning projects the city has undertaken recently, he said.
In response, the city set up a system that gave contractors extra points if they retained local subcontractors. Recently, local engineering firms have been retained as subcontractors to a contractor that developed a master plan for the Mill-Pine historic district and to a contractor working on relocating a taxiway at the Roseburg Regional Airport.
From his experience, Russ Noah, owner of the Roseburg-based general contracting business R.E. Noah and Co., thinks the city gives local businesses a fair shot at working on city projects.
“I wouldn't say there's a preference for locals,” Noah said, “but also, there's not been a restriction (on using local businesses).”
Preference for local businesses?
Opinions vary on how to enhance local business participation in public contracting.
Several people have discussed the possibility of the city setting up a system that gives local providers a preference.
Former Roseburg City Councilor Dan Hern said he remembers the city using such a system, through which local businesses were given extra points when bids were evaluated.
“It worked good,” Hern recalls of his time on the council, which ended Dec. 31, 2004. “I didn't ever hear any complaints.”
But Roseburg Management Technician Debi Davidson and City Recorder Sheila Cox, both longtime city employees, remember things differently.
“Neither Sheila nor I are aware of such a point system,” Davidson said in an e-mail. “There were conversations back at that time — similar to what we're hearing today about local preference, but nothing was pursued, developed, adopted.”
And Cheney notes the federal government often gives preferences when it awards contracts, such as to minority- or women-owned businesses. So he argues the city should be able to do something similar.
But Swanson says it's not that easy. “It poses tricky, legal problems to tackle,” he said. Even if the city could implement such a system, he doesn't think it would be a good idea.
“Most contractors don't want to see (such a system),” Swanson added. “If other cities pick it up, then they're at a disadvantage” when they bid on projects in those cities.
Noah said he doesn't like the idea of such a system, but for other reasons. In some instances, he thinks the city would find it can't find a product or service it needs locally.
“It wouldn't say that happens a lot, but it does happen,” he said.
He also thinks such a system would fly in the face of state public contracting laws and be difficult to set up. “Where do you draw the line (of what's local), at 50 miles, at 51 miles?” he asked.
Even experts in state public contracting law don't agree on the legality of the city setting up a system to give local businesses preference for city work.
Tony Green, spokesman for the Oregon Attorney General's Office, said state law requires or allows cities, counties and other jurisdictions to give preference to Oregon-produced goods and services over out-of-state goods and services in certain situations.
In his opinion, since state law spells out those situations, the laws “arguably preclude agencies from adopting additional preferences for their public contracts,” he said in an e-mail.
Chad Jacobs, general counsel for the League of Oregon Cities, said the league interprets state public contracting law differently.
As Roseburg has a home-rule charter, the league believes the city may adopt policies, such as giving local contractors a preference for city work, as long as the policies don't conflict with state law and the Legislature hasn't specifically prohibited such policies.
Jacobs said he's heard of other cities considering giving local businesses preferences for city projects. But he doesn't know of any that have implemented such systems.
How to work together?
Even if the city could provide more work to local businesses, Swanson doesn't see that as the ultimate solution.
He hopes the community conversation about how the city purchases goods and services will lead to a bigger discussion about how the city, community and businesses can work together more to make sure local businesses are competitive.
“I'm all about working with the Chamber (of Commerce), one of the groups in our community that can advocate for business interests, of putting together a group of folks to study these issues,” Swanson said. “How can we grow our businesses and make sure they are in a position to get that business, whether it's for city government, county government or the private sector?”
But Hern and Cheney have different perspectives on what can be gleaned from the debate on how the city acquires goods and services.
“To sum up my feelings on this all,” Hern said, “I think that every so often we all need to be reminded of various things. ... This is how the city staff was reminded they should think local first.”
“I feel very positive about Roseburg and seeing it succeed,” Cheney said. “And when I look around and see all the good people who are losing their jobs or small businesses that are having to lay off workers or cut back on benefits, and we have one of the highest unemployment rates in the nation, let alone in Oregon, I'm just thinking we have to do something to help our own people.”
• You can reach reporter Kathy Korengel at 957-4218 or by e-mail at kkorengel@nrtoday.com.
But objections from councilors, a local businessman who hadn't had a chance to offer his services for the work and local business people led the city to reconsider.
Ultimately, a local business got the work, and for less money than what the out-of-town company had proposed.
But the telecommunications system purchase was not the first time the city has considered turning to out-of-town contractors, says Mel Cheney, executive director of the Community Cancer Center and a former city councilor.
When he was on the council, “we frequently went outside of Roseburg when vendors capable of providing goods and services were here,” he claims.
Roseburg City Manager Eric Swanson disputes that contention, pointing to how the city recently changed its Request for Proposal process to address concerns raised by local engineering firms.
The firms approached Swanson and said they wanted a chance to work on planning projects the city has undertaken recently, he said.
In response, the city set up a system that gave contractors extra points if they retained local subcontractors. Recently, local engineering firms have been retained as subcontractors to a contractor that developed a master plan for the Mill-Pine historic district and to a contractor working on relocating a taxiway at the Roseburg Regional Airport.
From his experience, Russ Noah, owner of the Roseburg-based general contracting business R.E. Noah and Co., thinks the city gives local businesses a fair shot at working on city projects.
“I wouldn't say there's a preference for locals,” Noah said, “but also, there's not been a restriction (on using local businesses).”
Preference for local businesses?
Opinions vary on how to enhance local business participation in public contracting.
Several people have discussed the possibility of the city setting up a system that gives local providers a preference.
Former Roseburg City Councilor Dan Hern said he remembers the city using such a system, through which local businesses were given extra points when bids were evaluated.
“It worked good,” Hern recalls of his time on the council, which ended Dec. 31, 2004. “I didn't ever hear any complaints.”
But Roseburg Management Technician Debi Davidson and City Recorder Sheila Cox, both longtime city employees, remember things differently.
“Neither Sheila nor I are aware of such a point system,” Davidson said in an e-mail. “There were conversations back at that time — similar to what we're hearing today about local preference, but nothing was pursued, developed, adopted.”
And Cheney notes the federal government often gives preferences when it awards contracts, such as to minority- or women-owned businesses. So he argues the city should be able to do something similar.
But Swanson says it's not that easy. “It poses tricky, legal problems to tackle,” he said. Even if the city could implement such a system, he doesn't think it would be a good idea.
“Most contractors don't want to see (such a system),” Swanson added. “If other cities pick it up, then they're at a disadvantage” when they bid on projects in those cities.
Noah said he doesn't like the idea of such a system, but for other reasons. In some instances, he thinks the city would find it can't find a product or service it needs locally.
“It wouldn't say that happens a lot, but it does happen,” he said.
He also thinks such a system would fly in the face of state public contracting laws and be difficult to set up. “Where do you draw the line (of what's local), at 50 miles, at 51 miles?” he asked.
Even experts in state public contracting law don't agree on the legality of the city setting up a system to give local businesses preference for city work.
Tony Green, spokesman for the Oregon Attorney General's Office, said state law requires or allows cities, counties and other jurisdictions to give preference to Oregon-produced goods and services over out-of-state goods and services in certain situations.
In his opinion, since state law spells out those situations, the laws “arguably preclude agencies from adopting additional preferences for their public contracts,” he said in an e-mail.
Chad Jacobs, general counsel for the League of Oregon Cities, said the league interprets state public contracting law differently.
As Roseburg has a home-rule charter, the league believes the city may adopt policies, such as giving local contractors a preference for city work, as long as the policies don't conflict with state law and the Legislature hasn't specifically prohibited such policies.
Jacobs said he's heard of other cities considering giving local businesses preferences for city projects. But he doesn't know of any that have implemented such systems.
How to work together?
Even if the city could provide more work to local businesses, Swanson doesn't see that as the ultimate solution.
He hopes the community conversation about how the city purchases goods and services will lead to a bigger discussion about how the city, community and businesses can work together more to make sure local businesses are competitive.
“I'm all about working with the Chamber (of Commerce), one of the groups in our community that can advocate for business interests, of putting together a group of folks to study these issues,” Swanson said. “How can we grow our businesses and make sure they are in a position to get that business, whether it's for city government, county government or the private sector?”
But Hern and Cheney have different perspectives on what can be gleaned from the debate on how the city acquires goods and services.
“To sum up my feelings on this all,” Hern said, “I think that every so often we all need to be reminded of various things. ... This is how the city staff was reminded they should think local first.”
“I feel very positive about Roseburg and seeing it succeed,” Cheney said. “And when I look around and see all the good people who are losing their jobs or small businesses that are having to lay off workers or cut back on benefits, and we have one of the highest unemployment rates in the nation, let alone in Oregon, I'm just thinking we have to do something to help our own people.”
• You can reach reporter Kathy Korengel at 957-4218 or by e-mail at kkorengel@nrtoday.com.
