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(c) The city’s funding may not provide a pecuniary benefit to the owner of the <br />development for which the project is being constructed, other than benefits <br />that are shared by all members of the community; <br />(d) The performance of the general contractor and the payment of labor for <br />the project must be secured by performance and payment bonds or other <br />cash equivalent security that is acceptable to the Purchasing Agent to <br />protect the city against claims for payment and defective performance, <br />unless the city’s obligation to make a payment is conditioned upon final <br />completion of the improvements and proof of, or security for, payment <br />that is acceptable to the Purchasing Agent; and <br />(e) The contract for construction of all of the improvements must be amended, <br />as necessary, to require the general contractor to maintain adequate workers <br />compensation and liability insurance and to protect and provide <br />indemnification to the city for all claims for payment, injury or property <br />damage arising from or related to the construction of the privately- <br />constructed system improvements. <br />4.4 .7 CPIRRU <br />ONSTRUCTION OF UBLIC MPROVEMENTS OR ESURFACING OF OADSSING <br />CEP. <br />ITY QUIPMENT OR ERSONNEL <br />4.4 .7 .1 Required Plans and Reports. <br /> Before the city constructs a Public <br />Improvement, or resurfaces a highway, road or street at a depth of two or more <br />inches and at an estimated cost that exceeds $125,000, using its own equipment <br />or personnel, other than an improvement to be used for the distribution or <br />transmission of electric power: <br />(a) If the estimated cost exceeds $125,000, the department that will perform <br />the work shall prepare adequate plans and Specifications and the estimated <br />unit cost of each classification of work. The estimated cost of the work <br />must include a reasonable allowance for the cost, including investment <br />cost, of any equipment used. As used in this paragraph, “adequate” means <br />sufficient to control the performance of the work and to ensure satisfactory <br />quality of construction by the city personnel. <br />(b) The department that performs the work shall cause to be kept and <br />preserved a full, true and accurate account of the costs of performing the <br />work, including all engineering and administrative expenses and the cost, <br />including investment costs, of any equipment used. The final account of <br />the costs is a public record. <br />4.4 .7 .2 Required Accounting System. <br /> If the city fails to adopt and apply a cost <br />accounting system that substantially complies with the model cost accounting <br />guidelines developed by DAS pursuant to Section 3, chapter 869, Oregon Laws <br />1979, as determined by an accountant qualified to perform audits required by <br />ORS 297.210 and 297.405 to 297.555, the city may not construct a Public <br />Improvement with the city’s own equipment or personnel if the cost exceeds <br />$5,000. <br />Article 4 Classes of Contracts Page 11 <br />Exhibit A to Administrative Order No. 44-08-06-F <br /> <br />