Except as limited in Section 210.05, any expenditure for supplies, materials, equipment, construction projects or contracts obligating the City, where the amount of the City’s obligation is in excess of $10,000.00, shall be approved by the City Council and shall be governed by the provisions of this section and Section 12.2 of the City Charter.
(a) The Purchasing Agent shall solicit bids from a reasonable number of such qualified prospective bidders as are known to him or her.
(1) For purchases or contracts for professional services as limited in Section 210.05 of greater than $2,500.00 and less than $10,000.00, the Purchasing Agent shall document that he or she has obtained at least three written quotes, or attempted in good faith to obtain at least three written quotes.
(2) Department heads may purchase supplies, equipment or materials from $500.00 to $2,500.00, as approved by the Purchasing Agent, by obtaining at least three written quotes, or attempted in good faith to obtain at least three written quotes.
(3) For purchases of $20,000.00 or more, bids shall also be solicited by newspaper advertisement when directed by the City Council.
(b) Unless amounts are prescribed by the Council, the Manager shall prescribe the amount of any security to be deposited with any bid, which deposit shall be in the form of cash, certified or cashier’s check or bond written by a surety company authorized to do business in the State of Michigan. The amount of such security shall be expressed in terms of percentage of the bid submitted. Unless the amount is fixed by the Council, the Manager shall fix the amount of the performance bond, and in the case of construction contracts, the amount of the labor and materials bond to be required of the successful bidders.
(c) At the time the contract is executed by him or her, the contractor shall file a bond executed by a surety company authorized to do business in the State of Michigan, to the City, conditioned to pay all laborers, mechanics, subcontractors and material men, as well as all just debts, dues and demands incurred in the performance of such work, and shall file a performance bond when one is required. Said contractor shall also file evidence of public liability insurance in an amount satisfactory to the City Manager, and agree to save the City harmless from loss or damage caused to any person or property by reason of the contractor’s negligence.
(d) All bids and certificates of deposits or 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 five days after the same has been awarded, or file any bond required within the same time, the deposit accompanying his or her bid shall be forfeited to the City, and the Council may, in its discretion, award the contract to the next lower competent bidder meeting specifications, or to another competent bidder meeting specifications if the Council shall determine that the public interest will be better served by accepting such other bid, or said contract may be readvertised.
(1981 Code § 1.204)
(e) Sealed bids shall be obtained for purchases expected to exceed $20,000.00. They shall be governed by the following:
(1) Sealed bids may be received by electronic voice, mail, postal means, or hand delivered.
(2) Bids shall be opened in public at the time and place designated in the notice requesting bids in the presence of the Purchasing Agent, the City Clerk and at least one other City official, preferably the head of the department most closely concerned with the subject of the contract. The bids shall thereupon be carefully examined and tabulated and reported to the Council with the recommendation of the Purchasing Agent at the next Council meeting. After tabulation all bids may be inspected by the competing bidders. In lieu of the procedure for opening bids herein specified, the Council may direct that bids be opened at a Council meeting.
(3) When sealed bids are submitted to the Council, if the Council shall find any of the bids to be satisfactory, it shall award the contract to the lowest competent bidder meeting specifications, unless the Council shall determine that the public interest will be better served by accepting a higher bid. Such award may be by resolution or ordinance. The Council shall have the right to reject any or all bids, to waive irregularities in bidding and to accept bids which do not conform in every respect to the bidding requirements.
(f) Purchases shall be made from the lowest competent bidder meeting specifications unless the Council determines that the public interest will be better served by accepting a higher bid.
(g) No sale or purchase shall be divided for the purpose of circumventing the dollar value limitations contained in this Section.
(Ord. 001-2017. Passed 5-15-17.)