3.16.160 Formal contract procedure.
   Except as otherwise provided in this chapter, purchases of supplies and equipment of an estimated value greater than fifteen thousand dollars, and public works projects whose estimated cost exceed the limits established by this chapter, shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed as follows:
   A.   Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be secured, and the time and place for opening bids. The notice shall be forwarded to the members of the city council at least three days prior to publication (specified in subdivision 1 of this subsection) or mailing. The members of the city council shall be allowed three days in which to submit their comments concerning the bid specifications; if no comment is received, bidding procedures will commence as dictated in this chapter.
      1.   Published Notice. Notices inviting bids shall be published at least ten days before the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices.
      2.   Bulletin Board. The purchasing officer shall also advertise pending purchases by a notice posted on a public bulletin board in city hall.
   B.   Bidder’s Security. When deemed necessary by the purchasing officer, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract in accordance with the contract documents after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder if the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
   C.   Bid Opening procedure. Sealed bids shall be submitted to the city clerk and shall be identified on the envelope as a "sealed bid," with the item and date of opening set forth thereon. Bids shall be opened publicly at the time stated in the time stated in the public notice. A tabulation of all bids received will be available for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.
   D.   Rejection of Bids. In its discretion, the city council may reject any and all bids presented and re-advertise for the bids pursuant to the procedure hereinabove prescribed.
   E.   Award of Contracts. Except as otherwise provided in this chapter, contracts shall be awarded by the city council to the lowest responsible bidder. The city may award the contract to other bidders than the lowest responsible bidder if the city deems such award to be in the best interest of the city, giving due consideration to such items, but not limited to such items as time of delivery, convenience of service and maintenance.
(Ord. 586, 1991).
   F.   Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may, in its discretion, accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.
   G.   Performance Bonds. The city council shall have the authority to require a performance bond in which amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond will be described in the bid documents.
(Ord. 556 (part), 1989).