(A) All supplies, equipment, and contractual services, except as otherwise provided herein, shall be processed in accordance with the following schedule.
Purchase Schedule Estimated Cost | Requirements |
Up to $199 | No estimates or bids |
$200 to $1,999 | Telephone estimates |
$2,000 to $4,999 | Three written estimates |
$5,000 or more | Competitive bids |
(B) (1) The Council shall, by resolution, establish the purchasing limits that the Village Manager must abide by for all regular purchases. In the event that purchases made without Village Council approval from any one supplier exceed $10,000 in any fiscal year, the Council shall be informed of such in writing by the Village Manager.
(2) A purchase order shall be used for every purchase over $1,000. Written contracts shall be used for all contractual services. The Council or Manager may also require a written contract for any other purchase.
(3) The Council or Manager may ask for competitive bids on any purchase of $ 1,999 or less in an attempt to purchase the product at the least expense.
(a) Notice inviting bids.
1. Newspaper. Notices inviting bids shall be published in at least one newspaper of general circulation in the village and at least five days preceding the last day set for the receipt of proposals. The newspaper notice required herein shall include a general description of the articles to be purchased or sold, shall state where bid specifications may be secured, and the time and place for opening bids.
2. Bidder’s list. The Village Manager shall also solicit sealed bids from all responsible perspective suppliers who have requested their names be added to a “bidder’s list”, which the Village Manager shall maintain, by sending them a copy of such newspaper notice or such other notice to acquaint them with the proposed purchase or sale. In any case, invitations sent to the vendors on the bidder’s list shall be limited to commodities that are similar in character and ordinarily handled by the trade group to which the invitations are sent. Bids may also be solicited by telephone, direct mail, or by posting a notice on the public bulletin board at the village office.
(b) Bid deposits. When deemed necessary by the Manager, bid deposits shall be prescribed in the public notice inviting bids. Unsuccessful bidders shall be entitled to the return of bid deposits upon award of the contract. A successful bidder shall forfeit any bid deposit required by the Manager upon failure on his or her part to enter a contract within ten days after the award.
(c) Bid opening procedure.
1. Sealed. Bids shall be submitted sealed to the Village Clerk-Treasurer and shall be identified as bids on the envelope.
2. Opening. Bids shall be opened in public at the time and place stated in the public notices.
3. Tabulation. A tabulation of all bids received shall be available for public inspection.
(d) Rejection of bids. The Council shall have the authority to reject any bid, or any part thereof or any irregularity, when the public interest will be served thereby. The Manager shall not knowingly accept the bid of a contractor who is in default on the payment of taxes, licenses, or other monies due to the village. Contracts with bidders who are found to have been in default at the time of award of such contract shall be voidable.
(e) Award of contract.
1. Authority of the Village Manager. The Village Manager shall have the authority to award contracts within the purview of this subchapter, subject to the approval of the Village Council.
2. Lowest responsible bidder. Contracts shall be awarded to the lowest responsible bidder, in determining lowest responsible bidder, in addition to the price, the Village Manager shall consider:
a. The ability, capacity, and skill of the bidder to perform the contract or provide the service required;
b. Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;
c. The character, integrity, reputation, judgment, experience, and efficiency of the bidder in business;
d. The quality of performance of previous contracts or service;
e. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;
f. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services;
g. The quality, availability, and adaptability of the supplies, or contractual services, to the particular use required;
h. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; and
i. The number and scope of conditions attached to the bid.
3. Award to other than the low bidder.
a. From the bidders so determined to be responsible, the Council shall award the contract to the lowest such bidder; provided, that in determining the lowest bid, the Council shall consider the bona fide business location of the bidder.
b. If the lowest responsible bidder is not located within the village limits, and the lowest bid of the responsible bidders located within the village limits does not exceed that of said lowest non-local bidder by more than 5%, then the Council may determine said lowest local bidder to be the lowest responsible bidder, and make the award to such local bidder accordingly.
4. Irresponsible bidder; statement required. When bidders are determined not to be responsible bidders and their bids would have been lower than the bid actually awarded, a full and complete statement of the reason for such determination shall be prepared by the Village Manager and filed with the other papers relating to the transactions.
5. Performance bonds. The Village Manager shall, in his or her discretion, have the authority to require either a performance bond, cash deposit, or surety, before entering a contract, in such amount as he or she shall find reasonably necessary to protect the best interests of the village.
(f) Prohibition against subdivision. No contract or purchase shall be subdivided to avoid the requirements of this section.
(1984 Code, § 1-07-070) (Ord. 191, passed 9-12-1989; Ord. 229, passed 12-8-1992) Penalty, see § 10.99