(a) Contracts which do not require competitive bidding. The Manager may make any contract, purchase supplies or material or provide labor for any work involving an expenditure which does not exceed two times the amount specified by the laws of the State of Ohio for which expenditure may be made without competitive bidding, without passage of an ordinance or approval by Council; provided, however, that the Finance Director has first certified the availability of funds for the expenditure.
(b) Contracts which require competitive bidding. No contract which exceeds two times the amount specified by the laws of the State of Ohio for which an expenditure may be made without competitive bidding shall be made by the Manager, except as otherwise provided in this Chapter, unless authorized and directed by ordinance of the Council awarding a contract to the lowest and best bidder after advertising and opening and tabulating sealed bids; provided, however, that the Finance Director has first certified the availability of funds for the contract.
(c) Preparation of plans. The Manger or his or her designee is authorized without Council action to commence the competitive bidding process and the preparation of plans, documents and specifications for any project.
(d) Advertisement for competitive bids. Advertisement for bids shall be published for at least two consecutive weeks in a newspaper of general circulation within the municipality. The advertisement shall state where the plans and specifications for the project are on file, and the date and time when opened and the place where sealed bids will be received.
(e) Plans available to bidders. Plans, specifications and documents prepared for the project for which a contract may be awarded hereunder shall be available to all bidders upon request. The City may require payment by the bidder for the cost of reproduction of the plans, documents and specifications.
(f) General bid requirements.
(1) Each person submitting a bid for the award of a contract with the municipality for any public improvement shall file with the bid a bid guarantee in the form of either (1) a bond in the full amount of the proposal; or (2) a certified check, cashier's check or official bank check equal to 10% of the proposal; or (3) a letter of credit equal to 10% of the proposal in a form acceptable to and approved by the Law Director.
(2) A bid for a contract with the municipality shall be deemed non-responsive and rejected if the bid bond, performance bond, maintenance bond or combination of bonds submitted with the bid is executed by a surety not licensed, or a surplus lines company not approved, by the Superintendent of Insurance to execute such a bond in the State of Ohio.
(3) Each bid in response to an advertisement and notice to bidders for bids to contract shall be enclosed in a sealed envelope and deposited with the office of the Manager at the Chardon Municipal Center prior to the date and time scheduled for opening. Each envelope shall have written upon it the nature of the bid, project number (if any) and the name of the bidder. All bids shall be opened at the time, date and place specified in the notice to bidders, legal notice and advertisement.
(4) If included in the bid packet, the form of proposal to be submitted by each bidder shall be on the form provided by the municipality.
(5) Each bid shall contain the following: the full name of each person interested in it, the bid guarantee in compliance with subsections (1) and (2) above, and, unless otherwise set forth in the bid documents, items for labor and material shall be separately stated with the price thereof
(6) The municipality may extend the date or time for opening bids. Written or oral notice of an extension of the date, time, and place of bid openings to a later date shall be given to all persons requesting bid packets in response to the advertisement, legal notice and notice to bidders no later than 24 hours prior to the advertised date and time fixed for the opening of bids.
(7) The municipality may change the plans, specifications or estimates of cost without further advertising by notifying persons who have obtained plans and specifications for the project of said changes no later than 72 hours prior to the advertised time for the opening of bids.
(8) The municipality may require the submission of samples as part of the bid and with bid documents
(g) Opening of bids.
(1) Bids for a contract shall be opened at the time, date and place specified in the advertisement, legal notice and notice to bidders, or at the time, date and place in the notice to extend bid submission. Bids shall be publically read when opened by the Manager or a person designated by him or her. For purposes of this section, the provision of a bid guarantee in accordance with division (f)(1) of this section and R.C. § 153.54 issued by a surety licensed to do business in this state is evidence of financial responsibility, but the municipality may request additional financial information for review from an apparent low bidder after it opens all submitted bids. The municipality shall keep additional financial information it receives pursuant to a request under this division confidential, except under proper order of a court. The additional financial information is not a public record under R.C. § 149.43.
(2) Contract alterations or modification. When, in the opinion of the Manager or a person who he or she designates, it becomes necessary to make alterations or modifications in the contract to properly complete the work or improvement under the contract, such alterations or modifications shall be made only upon the order of the Manager. Any alteration, modification or change order shall be in writing and shall include the price to be paid for the work and material or both and shall be signed by the Manager on behalf of the municipality and the contractor. Any single change order in excess of an amount required to be bid by contract may be signed by the Manager only after approval and authorization by motion passed by Council. The Manager is authorized without approval of Council to approve any change order less than the amount which must be competitively bid under this section, including change orders necessary after the total, cumulative amount of change orders under the contract exceeds an amount which otherwise requires competitive bidding.
(h) Award of contract. The Council shall by ordinance award a contract to the lowest and best bidder and shall authorize the Manager to approve and sign the contract with the successful bidder on behalf of the municipality. The contract shall be in writing and contain specific prices for each kind of work to be performed and for materials to be furnished.
(i) Acceptance or rejection of bids. The Council reserves the right to accept or reject any and all bids or proposals, in whole or in part (by section), to delete certain items within any section, to increase or decrease quantities, to waive any informalities or irregularities and to reject any and all bids within 60 days after opening of the bids. The failure to award and authorize a contract by ordinance within 60 days after the bids are opened invalidates the entire bid proceeding and all bids submitted, unless the time for awarding and executing the contract is extended by mutual consent of the successful bidder and the municipality.
(j) Bid exceeds estimated cost. A contract may be awarded if the lowest and best bid exceeds the entire estimated cost of the project
(k) Lowest and best bidder.
(1) The “lowest” bid on a contract shall be the proposal submitted with the lowest price which responds to bid specifications in all material respects and contains no irregularities or deviations from the specifications which would affect the amount of the bid or otherwise give the bidder a competitive advantage.
(2) The factors which the municipality may consider in determining whether the bid is the “best” bid on the contract include the experience of the bidder, his or her financial condition, his or her conduct and performance on previous contracts, his or her facilities, his or her management skills, and his or her ability to execute the contract properly. In order to determine whether the bid is the “best” bid, the municipality requires the bidder to establish his or her competency to perform the project. The municipality may require that bidders include with the proposal and submit as part of the bid a list of projects similar to the one provided for in the specifications to establish that the bidder regularly engages in such work, and that the bidder has successfully completed at least one similar project. The municipality reserves the right to conduct an investigation of each bidder after the bids have been received, opened and read, and before a contract is awarded by ordinance, to determine which bid is the “best” bid under the factors listed in this paragraph. The municipality reserves the right to determine for each contract the relative priority given to each of the factors listed above.
(l) Contract alterations or modifications. When, in the opinion of the Manager or a person who he or she designates, it becomes necessary to make alterations or modifications in the contract to properly complete the work or improvement under the contract, such alterations or modifications shall be made only upon the order of the Manager. Any alteration, modification or change order shall be in writing and shall include the price to be paid for the work and material or both and shall be signed by the Manager on behalf of the municipality and the contractor. Any single change order in excess of $30,000 may be signed by the Manager only after approval and authorization by motion passed by Council. The Manager is authorized without approval of Council to approve any change order which is less than $30,000, including change orders necessary after the total, cumulative amount of change orders under the contract exceed $30,000.
(m) Payment. Payment to the successful bidder under the contract for work or services performed, materials provided or both shall be pursuant to the terms set forth in the form of contract included in the bid packet, in the general or special conditions or in other contract documents. Conditions for partial payment, final payment and retainage of funds until satisfactory of completion of the contract shall be included in the form of contract, general or special conditions or other contract documents.
(n) Award to general contractor of a single, aggregate contract. The requirements of R.C. §§ 153.50, 153.51 and 153.52, as currently in effect or hereafter amended, which require advertising for separate bids and awarding of separate contracts for each separate and distinct trade or branches or classes of work to be performed, shall not govern the bidding procedures of the municipality of Chardon, Ohio. The Manager is hereby empowered and authorized to advertise for a single bid and shall award a single, aggregate contract to one general contractor for an entire capital improvement project or public improvement without advertising for bids and entering into contracts for each separate trade or branches or classes of work to be performed. Nothing in this section shall be construed to authorize the Manager to proceed without competitive bidding, if otherwise required by this section, for a single, aggregate contract.
(o) Exceptions to competitive bidding. In the case of the following situations, the Council may authorize the Manager to enter into a contract without formal competitive bidding, advertising, or publication of legal notice, by ordinance adopted by an affirmative vote of four members of the Council.
(1) Emergency. In the case of a real and present emergency, arising in connection with the construction, maintenance, operation or repair of municipal buildings, equipment, facilities, utilities, and the public right-of-way, and delivery of municipal services to the residents. The Council, in its sole and absolute discretion, shall determine whether a "real and present emergency" exists requiring action hereunder for preservation of municipal property and delivery of municipal services. The real and present emergency shall be described in the enabling ordinance.
(2) Contracts with government agencies. Contracts for the purchase of supplies, services, materials or equipment from another political subdivision, the State of Ohio, the United States or any agency thereof.
(3) Department of Administrative Services contracts. Contracts for supplies or services for the purchase of supplies and services through the Department of Administrative Services, pursuant to Ohio R.C. 125.04(B), as currently in effect or as hereafter amended; or the purchase of supplies or services from another party if the contract with the other party is upon the same or equivalent terms, conditions and specifications but at a price equal to or lower than available through the Department of Administrative Services, pursuant to Ohio R.C. 125.04(C), as currently in effect or as hereafter amended.
(4) Contracts through the Director of Transportation. Purchases of machinery, materials, supplies or other articles available through contracts into which the Director of Transportation has entered for the purchase of machinery, materials, supplies or other articles, pursuant to Ohio R.C. 5513.01, as currently in effect or as hereafter amended.
(5) Purchase of products and services of persons with severe disabilities. The purchase of products manufactured and services provided by persons with severe disabilities and offered for sale to political subdivisions, as set forth in Ohio R.C. 4515.32, as currently in effect or as hereafter amended.
(6) Public auction. The purchase of used equipment or supplies at a private auction open to the public, or at an auction or sale of equipment or supplies by any department, division, agency or political subdivision within the State upon submission of bids to the vendor, where the vendor has invited the public to submit written bids or when more than one bid is to be submitted. The Council shall authorize the Manager or the Manager's designee to bid and shall determine the maximum amount which may be bid as a purchase price for used equipment or supplies.
(7) Lease of municipal property. A lease of municipal property if the lease is for a period of five years or less and the annual rental paid by the tenant is $15,000 per year or less.
(8) Professional services. Contracts for the services of financial consultants, appraisers, consulting engineers, architects, construction and accounting experts, attorneys and other consultants and independent contractors who provide professional services; or persons, firms or corporations which provide services requiring specialized skill, knowledge or training. Before contracting for professional design services, the Manager shall comply with the requirements of Ohio R.C. 153.65 to 153.71, as currently in effect or as hereafter amended.
(9) Contracts for the partial or total reconstruction, replacement or restoration of municipal buildings, equipment, facilities or utilities, if:
A. Proceeds from a policy of insurance will be used to pay more than one-half of the cost of replacement, reconstruction or restoration; and
B. The lowest and best bids in response to two separate advertisements for competitive bids exceeds by more than ten percent the cost estimated the municipal engineer or municipal staff for replacement, restoration or reconstruction.
(p) Unopened bids are not public records. Sealed bids in response to an advertisement, notice to bidders or publication for bids shall not be available for public inspection and copying under R.C. Chapter 149 until the bids are opened and publically read pursuant to this chapter.
(Ord. 1977. Passed 2-10-00; Ord. 2041. Passed 2-8-01; Ord. 2168. Passed 9-11-03; Ord. 2782. Passed 7-11-13.)