109.02 CONTRACTS AND BIDS.

Subject to the power of Council to amend or repeal, the procedure for making public improvements and levying assessments therefor shall be the same as that provided in Ohio R.C. Chapter 727, which is incorporated herein by reference as if set forth at length.

The sewer districts and plan for the system of sewerage heretofore adopted by Council and followed by Council are hereby readopted.

(Ord. 9623. Passed 1-21-52.)

(a) No contracts in excess of five thousand dollars ($5,000) shall be entered into without prior approval of the Board of Control. Any contracts in excess of seventy-five thousand dollars ($75,000), shall first be authorized and directed by ordinance of Council. Any contracts in excess of seventy-five thousand dollars ($75,000) duly authorized by Council shall require no further action by the Board, except as set forth in Section 109.03. Beginning on January 1, 2024 through calendar year 2024, all contracts for goods and materials fairly estimated to exceed seventy-five thousand dollars ($75,000) shall be competitively bid unless exempted by ordinance or State law. For each calendar year thereafter, the amount for the previous calendar year increases by three percent as determined and published by the Ohio Director of Commerce.

(Ord. 32-1990. Passed 2-5-90; Ord. 285-1999. Passed 12-20-99; Ord. 20-2001. Passed 2-5-01; Ord. 60-2018. Passed 5-7-18; Ord. 141-2023. Passed 12-18-23.)

(b) In cases of extreme emergency, Council may, by ordinance, authorize a contract without newspaper advertising or posting. The bids shall be opened at the time set in the notice to the bidders by the officer authorized in the ordinance, or by the Mayor in case none is authorized, and publicly read by him or her.

(c) Each bid shall contain the full names of every person or company interested in it and shall be accompanied by a sufficient bond or certified check on a solvent bank. If the bid is accepted, a contract will be entered into and the performance of it properly secured. If the work bid embraces both labor and material, they shall be separately stated with the price thereof. The authorized officer or the Mayor, as the case may be, may reject any and all bids. Where there is reason to believe there is collusion or combination among bidders, then the bids so concerned shall be rejected. No contract will be awarded in excess of 110% of the amount budgeted or in excess of 110% of the engineer’s or architect’s estimate of the work to be performed. The contract shall be written in a form approved by the Director of Law. The Board may award the contract to the lowest and best bidder.

(Ord. 13-1989. Passed 1-17-89; Ord. 117-2008. Passed 5-5-08.)

109.023 CRITERIA TO DETERMINE LOWEST AND BEST BIDDER.

(a) The Board of Control and, in particular, the Director authorized to advertise for bids for necessary goods and/or services will consider all bids in light of the following criteria when recommending and awarding the “lowest and best” bid as required by Section 109.02 of the Euclid Codified Ordinances:

(1) Past performance by the bidder on City or other governmental agencies contracts for same or similar work;

A. Quality of work, materials, services, and facilities;

B. Cooperation with City and public;

C. Ability to meet schedule and budget;

D. The amount of any change orders or cost overruns and the reason for the change order or cost overrun.

E. Number and type of problems/complaints and whether any claims have been made against the performance bonds secured by the bidder for past projects.

(2) Information regarding the bidder's workforce;

A. Experience and continuity of the bidders work force as well as the skill of the bidder's management;

B. Number of permanent and temporary employees who will be assigned to the contract;

C. The number of local employees that will be working on the contract;

D. Disclosure of any suspension or revocation of any professional license of any director, officer, owner, or managerial employee, to the extent that any work to be performed is within the field of such licensed profession.

E. Whether the bidder is a “Minority Business Enterprise” or an “EDGE eligible” business as certified by the State of Ohio Department of Administrative Services.

F. The number of certified “Minority Business Enterprises” or an “EDGE eligible” business as certified by the State of Ohio that the bidder will employ as subcontractors.

(3) Identification and description of any projects within the previous five years that the bidder was determined by a public entity not be a responsible bidder, the reasons given by the public entity, together with an explanation thereof;

(4) Disclosure of any litigation (including copies of pleadings) in which the bidder has been named a defendant or third party defendant in an action involving a claim for personal injury or wrongful death arising from performance of work related to any project in which it has been engaged within the previous five years;

(5) Adequate demonstration of financial responsibility, which may include a certified financial statement prepared by a certified public accountant, to assure that the apparent lowest bidder possesses adequate resources and availability of credit and the means to obtain the insurance and bonds that will be required for the project;

(6) Conviction of bidder and/or principal in bidding firm known to the City for crimes of moral turpitude (ex: perjury, fraud, bribery) during the three years previous to the date of the bids;

(7) The number of years the bidder has been actively engaged as a vendor/contractor in the construction industry;

(8) Capacity of bidding firm to complete the work per specifications; ex: a brand new firm without experience or reputation may submit the lowest dollar bid but may lack the experience or fiscal ability to complete the contract; City is entitled to minimize risks to the public of incomplete contract or incompetent bidder;

(9) Bidding firm's record for compliance with state, federal and local laws and regulations including equal opportunity, prevailing wage, unemployment, Fair Labor Standards Act, Worker's Compensation law, those established by OSHA, etc.;

(10) Any other relevant and material facts and circumstances.

(b) A preference not exceeding three percent (3%) may be given to firms which have a substantial presence (i.e. total taxes paid to City and school not less than five thousand dollar ($5,000)/year) in the City of Euclid provided the bidder satisfies all other requirements contained herein;

(c) A preference not exceeding two percent (2%) may be given to firms which are certified as a “Minority Business Enterprise: or an “EDGE eligible” business by the State of Ohio Department of Administrative Services provided the bidder satisfies all other requirements contained herein, provided further, that a bidder qualified under this provision shall not be awarded a preference under this provision if they qualify for the three percent (3%) preference as a Euclid based business as defined in division (b) above;

(d) When a contract is for goods, services, or construction, is for twenty-five thousand dollars ($25,000) or more, and is paid in whole or in part with state funds, the contract shall not be awarded to a person or firm against whom a finding for recovery has been issued by the auditor of the state. Prior to awarding the contract the Board of Control must perform a certified search of the findings for recovery database in order to obtain proof that the person or firm does not appear in the database and has no unresolved finding for recovery issued against them. If a finding for recovery has been issued against that person or firm they may not receive the contract. If no such finding for recovery is discovered then the contract may be awarded to the individual or firm. A copy of the results of the certified search shall be kept on record along with all other documents pertaining to the contract. This procedure must also be followed for contracts between the City and an individual or firm when the aggregate cost for the goods, services or construction provided under all contracts entered into by the City and that individual or firm within the preceding fiscal year exceeded fifty thousand dollars ($50,000) and the contract is paid in whole or in part with state funds.

(Ord. 82-2010. Passed 5-17-10; Ord. 53-2011. Passed 4-18-11.)

109.025 PROJECT LABOR AGREEMENTS AND RESPONSIBLE CONTRACTING PRACTICES.

(a) Public Purpose. The City finds that evaluating the feasibility of project labor agreements for City building projects and articulating standards and establishing reporting requirements to evaluate the responsibility of public contractors further the following public purposes:

(1) Promotion of better quality workmanship on City building projects, which saves tax dollars and protects the public health, safety, and morals well being; and

(2) Compliance with deadlines for the construction of public buildings, a significant benefit to the public's health, safety and morals well being.

(b) Evaluation of Project Labor Agreements Required.

(1) The Mayor or his designee, with the assistance of the Law Department, shall meet with the appropriate trade union, in connection with the public bidding and contract awarding process for every proposed City building projects in which the engineering estimate for the project exceeds two hundred thousand dollars ($200,000) to evaluate whether a project labor agreement will advance the City's procurement interest in cost, efficiency, and quality in promoting labor-management stability as well as compliance with applicable legal requirements governing safety and health, equal employment opportunity, labor and employment standards, and other matters.

(2) If the Mayor, or his designee, determines that use of a project labor agreement will serve the goals set forth in Section 109.025(a) of this chapter, the Mayor or his designee, shall negotiate a project labor agreement with the appropriate trade union.

(3) The bidding documents for each such City building project shall contain a written provision requiring the successful bidder to comply with and adhere to all of the provisions of any project labor agreement negotiated by the Mayor for the project.

(4) The City shall not thereafter enter into any contract with the successful bidder for the construction of any such City building unless the contract contains a provision requiring the successful bidder, and all of his contractors and subcontractors to comply with and adhere to the provisions of the negotiated project labor agreement.

(c) Rejection of Project Labor Agreement; Council Action Required. If the Mayor, with respect to any proposed City building project with an engineer estimate in excess of two hundred thousand dollars ($200,000), determines that a project labor agreement will not serve the goals set forth in Section 109.025(a) of this chapter, the Mayor shall submit a written report and recommendation to the Clerk of Council, which thereafter shall be acted upon by Council as hereinafter provided, prior to the preparation of bid documents for the project. The report of the Mayor shall state the Mayor's reasons for believing that negotiating a project labor agreement for the project will not substantially further the purposes of this chapter, and shall contain his recommendation to Council not to negotiate a project labor agreement. The report shall be presented to the members of Council at Council's next regular or special meeting which occurs at least five days after the Clerk of Council's receipt of the Mayor's report or recommendation. At that meeting of Council, or at Council's next regular or special meeting, Council shall by motion determine whether the Mayor's recommendation not to negotiate a project labor agreement should be adopted. If a majority of the members of Council vote against the motion to adopt, then the Mayor, or his designee, with the assistance of the Law Department, shall be required to forthwith negotiate a project labor agreement for the project. Thereafter, all of the requirements of Section 109.025 shall apply with respect to the project.

(d) Responsible Contracting Standards and Procedures Established.

(1) The Mayor, or his designee, in connection with the public bidding and contract awarding process for every proposed City building and other City improvement project, shall, prior to the awarding of contracts, establish criteria for evaluating the responsibility of the apparent lowest bidder and require that the apparent lowest responsible bidder provide information necessary to ascertain the pecuniary and financial responsibility, accountability, reliability, skill, capacity, judgment and integrity and moral worth to do business in our community. In the event the apparent lowest bidder fails to furnish the requested information and/or the information provided demonstrates a lack of responsibility, the apparent lowest bidder shall be rejected and is disqualified and the next lowest bidder shall become the apparent lowest bidder.

(2) The Mayor shall require bidders to furnish the following items:

A. Descriptions of its experience with projects of comparative size, complexity, and cost within recent years, demonstrating the contractor's ability and capacity to perform a substantial portion of the project with its own forces;

B. Documentation from previous projects regarding timeliness of performance quality of work, extension requests, fines and penalties, imposed and payments thereof, liens filed, history of claims for extra work, contract defaults, together with explanations of the same;

C. Identification and description of any projects within the previous five years that the apparent lowest bidder was determined by a public entity not to be a responsible bidder, the reasons given by the public entity, together with an explanation thereof;

D. An adequate demonstration of financial responsibility, which may include in the Mayor's discretion, a certified financial statement prepared by a certified public accountant, to assure that the apparent lowest bidder possesses adequate resources and availability of credit and the means and ability to procure insurance and bonds required for the project;

E. Disclosure of any suspension or revocations of any professional license of any director, officer, owner, or managerial employee of the apparent lowest bidder, to the extent that any work to be performed is within the field of such licensed profession;

F. Disclosure of any and all OSHA violations with the previous three years, as well as all notices of OSHA citations filed against the apparent lowest bidder in the same three-year period, together with a description and explanation of rededication or other steps taken regarding such violations and notices of violation;

G. Disclosure of any and all violations within the previous five years pertaining to unlawful intimidation or discrimination against any employee by reason of race, creed, color, disability, sex, or national origin and/or violations of an employee's civil or labor rights or equal employment opportunities;

H. Disclosure of any litigation (including copies of pleadings) in which the apparent lowest bidder has been named as a defendant or third party defendant in an action involving a claim for personal injury or wrongful death arising from performance of work related to any project in which it has been engaged within the previous five years;

I. Disclosure of allegations of violations of the prevailing wage law and any other State or Federal labor law, including, but not limited to, child labor violations, failure to pay wages, or unemployment insurance tax delinquencies or unfair labor practices within the past five years;

J. Disclosure of violations of the workers compensation law;

K. Disclosure of any criminal convictions or criminal indictments, involving the apparent lowest bidder, its officers, directors, owners, and/or managerial employees, within the past five years;

L. Disclosure of any violation within the past five years or pending charges concerning Federal, State, or municipal environmental and/or health laws, codes, rules and/or regulations;

M. Documentation of the contractor's participation and contributions to a bona fide apprenticeship program;

N. Documentation that the contractor provides health insurance and pension benefits to its employees;

O. Identification of whether the contractor's workforce is drawn mainly from area residents;

P. Identification of all work to be subcontracted. All subcontractors are also subject to the approval of the Mayor based on the above considerations.

(3) In the event the amount of the lowest bid appears disproportionably low when compared with estimates undertaken by or on behalf of the City and/or compared to other bids submitted, the Mayor reserves the right to inquire further of the apparent lowest bidder to determine whether the bid contains mathematical errors, omissions and/or erroneous assumptions, and whether the apparent lowest bidder has the capability to perform and complete the contract for the bid amount.

(4) Prior to a final determination that the apparent lowest bidder is not responsible, the City shall notify the party of the same, in writing, stating the reasons causing concern, and setting forth a time, date, and place for the apparent lowest bidder to appear and be heard by the Mayor or his designee, prior to a determination being made regarding its responsibility.

(Ord. 7-2009. Passed 1-20-09.)

109.03 MODIFICATION OF CONTRACTS.

When it becomes necessary, in the opinion of the Mayor or of the head of a department, in the prosecution of any work or improvement under contract, to make alterations or modifications in contracts, such alterations or modifications shall only be made by the order of the Mayor or such director or head of a department. Such order shall be of no effect until the price to be paid for the work and material, or both, under the altered or modified contract has been agreed upon in writing and approved by the Board of Control and signed by the contractor or vendor and the Mayor, or the director or head of a department, as the case may be, on behalf of the City. However, the change orders to a contract resulting in an increase over the contract price and above the funds appropriated for payment of such contract shall be implemented only after Council approves the necessary appropriation to pay such increase in addition to the contract price, and after certification thereof by the Finance Director.

No contractor shall be allowed to recover anything for work or material caused by any alteration or modification unless the contract is altered as provided in this section. No contractor shall be allowed to recover more than the agreed price for such work or material. Duplicate copies of each contract shall be kept on file in the office of the head of the department executing the contract or the Mayor, as the case may be, and a copy thereof shall be kept on file in the office of the Director of Finance.

(Ord. 78-1988. Passed 4-4-88.)

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