(A) Requirements for bids. Competitive bids shall:
(1) Be in writing and sealed;
(2) Be filed with the City Manager of the city;
(3) Be at the sole cost of the bidder;
(4) Opened publicly by the city at the time designated in the advertisement, which date shall be not less than 5 days after the date of the last publication of the advertisement;
(5) Bids shall not be examined or opened by anyone until the time of the public opening as provided in the advertisement and such bids are not public record until the bid opening. After having been opened, the bids shall be filed for public inspection;
(6) If required by the city for a particular contract or class or contracts, a surety bond, cashier's check or certified check of the bidder shall be attached to all bids as bid security unless exempted from this requirement. Such security shall not exceed 10% of the amount bid for the contract;
(7) The city may accept facsimile or electronically transmitted bids subject to the city's facsimile and electronic submission ordinance requirements. If the city determines that it will accept facsimile bids, the notices and advertisements shall state this. Any bids accepted by facsimile must have the bid security, delivered to City Hall by the closing date and time; and
(8) The bidder's offer is a firm offer, irrevocable, valid and binding on the offeree for a period of not less than 30 days from closing unless otherwise specified in the bid document or solicitation.
(B) Award to the lowest responsible bidder. After bids are opened and after a determination is made by the Council that a contract is to be awarded, the Council may award the contract to the lowest responsible bidder.
(1) LOWEST RESPONSIBLE BIDDER means the lowest bidder who has substantially complied with all prescribed public bidding procedures and requirements and who the city finds:
(a) Has the financial, equipment, personnel and expertise sufficient to perform the contract; and
(b) Can acquire a surety bond in the amount and type required, should the city determine that such bond be required to insure performance; and
(c) Has equipment available to perform the contract; and
(d) Has key personnel available of sufficient experience to perform the contract; and
(e) Has a satisfactory record or contract performance obligations to the city and on other public and private contracts; and
(f) Has a satisfactory record of integrity. If the offeror has demonstrated a lack of business ethics, such as a violation of state environmental laws, false certification or convictions of its owners, officers or directors for any criminal offense for embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, anti-trust violations or any other offense indicating a lack of business integrity or honesty, the city may, on its discretion, omit the bid from consideration. The city may require a credit report, at the bidder's sole expense, on any person involved in the business, as part of the city's determination in the bid award.
(2) The city may make such investigation as is necessary or desirable to determine whether a person is qualified, including inquiries to the Oregon Contractor's Board. The city's investigation may include the business entity's owners, officers, directors, affiliates or any other entity acquiring an ownership interest. Lack of integrity defined in division (B)(1)(6) above as to any person listed herein is sufficient to disqualify the bid, in the city's sole discretion.
(C) Successful bidder. The successful bidder shall:
(1) Promptly execute a formal contract produced or approved by the city;
(2) Promptly execute and deliver to the city a good and sufficient performance bond, furnished by a surety company authorized to do business in Oregon, approved by the City Council, in a sum equal to the contract price for the faithful performance of the contract, or in lieu of a surety bond, a cashier's check or certified check payable to the city in an amount not less than a sum equal to 100% of the contract price, unless such requirement is waived or modified by the Council.
(a) This division shall not apply to contracts for less than $25,000, unless special circumstances, in the discretion of the City Council, so require.
(b) This division shall not apply in cases of emergency, or where the interest or property of the city probably would suffer material injury by delay or other cause, such emergency or probable material injury made by unanimous declaration of the Council.
(3) In the event that the successful bidder fails to execute the contract provided by the city and post the required bond, within 30 days of the award date, the city may reject the offer and award the contract to the responsive bidder with the next lowest responsible bid.
(4) The successful bidder may offer a substitute contract at any time during the contract performance upon approval by the city, provided that the contract terms and the bond requirements remain unchanged. Such substitute performance does not involve the award of a new contract and is not subject to competitive bidding requirements.
(D) Return or retention of bid security.
(1) Successful bidder. Upon execution of the contract and bond, the bid security of the successful bidder shall be returned to him/her. Should the bidder, however, fail to promptly or properly execute the contract or bond, he/she shall forfeit his/her bid security, which shall be kept by the city as liquidated damages for such failure and not as a penalty of failure of the successful bidder to execute the contract or bond.
(2) Unsuccessful bidder. The bid security of the unsuccessful bidders shall be returned to them when the bids have been opened, the contract has been awarded, and the contract has been duly signed and the bond delivered to the city.
(E) Rejection of bids. The city may reject:
(1) Any bid not in compliance with all prescribed public bidding procedures and bid requirements;
(2) Bids made contingent upon the city's acceptance of terms and conditions that differ from the bid specifications or solicitation document; and/or
(3) All bids if, in the city's judgment, it is in the public interest to do so. In the event that the city cancels the solicitation prior to the bid opening, the city shall return all offers it has received unopened to the offerors.
(Ord. 10-413, passed 12-15-2010)