Any other expenditure or contract for supplies, materials, equipment, construction project or services obligating the city, shall be approved by the City Commission and shall be governed by the provisions of this section.
(A) Such expenditure shall be made the subject of a written contract unless provided otherwise by resolution of the City Commission. A purchase order shall be a sufficient written contract in cases where the expenditure is in the usual and ordinary course of the city’s affairs.
(B) Except as provided in § 1.213, the purchasing agent shall solicit bids from a reasonable number of such qualified prospective bidders as are known to him or her either by sending each a copy of the notice requesting bids or by posting on city website.
(C) Unless prescribed by the Commission, the Manager shall prescribe whether security is required to be deposited with any bid, and the amount thereof, which deposit shall be in the form of cash, certified check or bond written by a surety company authorized to do business in the State of Michigan. The amount of such security shall ordinarily be expressed in terms of percentage of the bid submitted. Unless fixed by the Commission, the Manager shall, in the case of construction contracts, fix the amount of the performance bond and the amount of the labor and materials bond required of the successful bidders.
(D) Where provided by the notice to bidders, bids shall be opened in public at the time and place designated in the notice requesting bids. The bids shall be tabulated and reported to the Commission with the recommendation of the purchasing agent at the next Commission meeting. After tabulation, all bids may be inspected by the competing bidders. In lieu of the procedure for opening bids herein specified, the Commission may direct that bids be opened at a Commission meeting.
(E) The Commission shall have the right to reject any or all bids and to waive irregularities in bidding and to accept bids which do not conform in every respect to the bidding requirements.
(F) Before a construction contract may be executed by the city, the contractor shall file a labor and materials bond and a performance bond executed by a surety company authorized to do business in the State of Michigan, as required by Public Act 213 of 1963, being M.C.L.A. §§ 129.201 et seq. The contractor shall also file evidence of public liability insurance in an amount satisfactory to the City Manager, and shall agree to save the city harmless from loss or damage caused to any person or property by reason of the contractor’s negligence or wrongful act.
(G) All bids and deposits of certified or cashier’s checks may be retained until the contract is awarded and signed. If any successful bidder fails or refuses to enter into the contract awarded to him or her within seven days after the same has been awarded, or to file any required bond or evidence of insurance within the same time, the deposit accompanying his or her bid shall be forfeited to the city, and the Commission may, in its discretion, award the contract to one of the other bidders whose bid it finds satisfactory or said contract may be resubmitted.
(H) Any purchase or contract to be made or performed in segments or components shall be subject to this section if the total cost is reasonably expected to equal or exceed $5,000.
(Ord. effective 7-28-2017)
Statutory reference:
Related provisions, see M.C.L.A. §§ 129.201 et seq.