(1) The City Council or the City Manager may, in their discretion, let public contracts without formal competitive bidding if an emergency exists and the emergency consists of circumstances creating a substantial risk of loss, damage, interruption of services or threat to public health or safety that could not have been reasonably foreseen and requires prompt execution of a contract to remedy the condition. The City Manager's authority under this exemption is limited to contracts under $50,000.

(2) The City Council shall, when it uses this exemption, adopt a resolution indicating the existence of the emergency stating with specificity the emergency conditions necessitating the prompt execution of the contract. The City Manager shall report to the Council in writing at its next meeting all contracts awarded under this section and the specific justification for the use of the exemption.

(3) Any contract awarded under this exemption shall be awarded within 60 days following declaration of the emergency unless an extension is granted pursuant to ORS 279B.080 and 279C.335(5).