The following requirements shall be met in the manners indicated below:
(A) Bid security.
(1) Public works or construction contracts over $20,000. When the estimate for any public works or construction contract is over $20,000, all bidders shall submit a bid bond secured by a cashier’s check or certified check or by an insurance company licensed to do business within the state, attached to the bid documents in an amount equal to at least 5% of the bid or such other reasonable amount as determined by the City Manager. The security will be held to ensure good faith on the part of the bidder and to be applied as liquidated damages should the successful bidder fail to execute and submit all required contract documents within the time required by § 37.13 or attempt to withdraw the bid prior to the beginning date of the contract.
(1) Other purchases or contracts. For any purchase or contract other than as set forth in division (A) of this section or if the bid award is computed from a bid not based on a fixed total contract sum, the City Manager is empowered to fix a reasonable bid security amount to ensure good faith on the part of the bidder and to be applied as liquidated damages should the successful bidder fail to execute and submit all required contract documents within the time required by § 37.13 or attempt to withdraw the bid prior to the beginning date of the contract. If the City Manager determines that the requirement of a bid bond may result in a lack of competitive bids or quotes or is otherwise not warranted, the City Manager may waive the requirement of a bid bond.
(3) Return of bid security. All bid security, other than that submitted by the successful bidder, shall be returned to the respective bidders within a reasonable period of time after award of a contract or rejection of the bid. The bond of the successful bidder shall be held by the City Manager until all required contract documents have been fully executed.
(B) Affidavits of compliance. Each bidder shall submit, with other required contract bidding documents, the following affidavits.
(1) An affidavit that the bidder is familiar with and will comply with all applicable state, local and federal laws, including, as applicable, but not limited to, the Prevailing Wage Act and the Davis-Bacon Act.
(2) An affidavit indicating the following ownership status of the bidder:
(a) If a corporation. The name of the state in which the corporation is chartered; the name, address and telephone number of the local registered agent and office;
(b) If a partnership. The name of all partners and the address and telephone number of the business office;
(C) Sole proprietorship. The name of the owner and the address and telephone number of the business office.
(3) An affidavit that the bidder has not colluded with any person in the bid for the contract.
(4) An affidavit that the bidder does not and will not engage in discriminatory practices and does not and will not engage in discrimination because of race, sex, religion, national origin, age or sensory, mental or physical handicap in hiring or firing, and is in fact an equal opportunity employer.
(C) Insurance, all construction and public works contracts.
(1) The successful bidder in all construction or public works contracts shall submit with other required contract documents a certificate of general liability insurance, issued by an insurance company licensed to do business within the state, indicating the bidder as the insured and naming the city as an additional insured for the duration of the contract, in at least the following amounts.
(a) Commercial general liability. One million dollars combined single limit per occurrence for bodily injury, personal injury, and property damage. The minimum general aggregate shall be no less than a project/contract specific aggregate of $1,000,000.
(b) Business automobile liability. One million dollars; combined single limit per accident for bodily injury and property damage.
(c) Worker’s compensation insurance, amount as required by state statute.
(d) Any self-insured retentions must be declared to and approved by the city. This certificate shall be submitted with the other required documents.
(2) The successful bidder shall require the same amounts and coverages as in division (A) of this section from all subcontractors.
(D) Labor and performance bonds.
(1) Labor and performance bond. Construction and public works contracts over $20,000. The successful bidder in all construction and public works contracts whose estimated contract price exceeds $20,000 shall submit a labor and materials bond and a performance bond written for the duration of the contract issued by an insurance company licensed to do business within the state. The labor and materials bond shall be conditioned upon the full and complete payment for all materials and labor used to complete the contract, in the amount of 100% of the contract price. The performance bond shall be conditioned on the full completion of the contract according to its terms, in the amount of 100% on the contract price. Any person may submit in lieu of the performance bond required in this section, cash in escrow with an escrow agreement approved as to form by the City Attorney. The amount deposited in escrow shall be in the amount of 100% of the contract price. Notice of intent to make such an escrow deposit shall accompany the bid proposal. No withdrawal of the escrow deposit by the bidder shall be allowed until the completion of the project as approved by the City Manager. The successful bidder shall execute the performance bond on a form provided by the city or its equivalent and submit the bond with other required contract documents.
(2) The City Manager may require a labor and materials bond or a performance bond for any other contract to be entered into by the city.
(3) All bidders on any contract which is funded from the state motor fuel tax in whole or in part shall submit to the City Manager when required by the state, a current certificate of eligibility indicating prequalification in at least the amount of the bid and areas of expertise required and issued by the state at or prior to the time and date set for bid opening.
(Ord. 01-2010, passed 6-8-2010)