(A) Application of procedures. The following procedures shall be applicable for the bidding process for purchases over $25,000 or for purchases under $25,000 when the City Administrator believes it is in the best interest of the city to utilize a formal sealed bid procedure.
(B) Notice inviting bids. Notice inviting bids for purchases shall be published at least once in a newspaper with general circulation within the city.
(C) Scope of notice. The newspaper notice required herein shall include a general description of the work to be performed or the articles to be purchased, shall state where specifications may be secured, and the time and place for opening bids.
(D) Bid deposits. When deemed necessary by the City Council, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to the return of their bid deposits upon the award of the contract by the City Council. A successful bidder shall forfeit any bid deposit required by the City Council upon failure on his or her part to enter into a contract within ten days after the award.
(E) Bid specifications.
(1) It shall be the duty of the department head to prepare written specifications for open, competitive bidding. The specifications shall be approved by the City Administrator or by such knowledgeable person as the City Administrator may appoint to review the specifications. The City Administrator, at his or her discretion, may mail bid specifications to prospective bidders.
(2) The department head shall have the authority to interview such salespersons or representatives of manufacturing concerns as he or she may wish in the development of specifications, as long as the interviewing does not result in a cost to the city.
(F) Bid opening procedure.
(1) Sealed. Bids for purchases shall be submitted sealed to the City Administrator's office 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 notice.
(3) Tabulation. A tabulation of all bids received shall be made by the City Council or by a city employee, in which event a tabulation of the bids shall be furnished to the City Council at its next regular meeting.
(G) Rejection of bids. The city shall have the authority to reject all bids or parts of all bids when the public interest will be served thereby.
(H) Bidders in default to city. The city shall not accept the bid for a contractor who is in default on the payment of taxes, licenses or other monies due the city.
(I) Award of contract.
(1) Lowest responsible bidder. Contracts shall be awarded to the lowest responsible bidder. In awarding the contract, in addition to price, the City Council shall consider the following when determining whether the bidder is responsible:
(a) The ability, capacity and skill of the bidder to perform the contract to 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;
(d) The quality of the performance of previous contracts or services;
(e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract and service;
(f) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
(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.
(2) Performance bonds. The city shall require a 100% performance bond, before entering into a contract to protect the best interests of the city. In addition to a performance bond, the city shall retain 10% of the amount otherwise due as retainage from each progress payment made before substantial completion of the project/contract. The city may also allow other forms of security, as deemed acceptable by the City Administrator, to include cashier's checks or letters of credit.
(3) Certificate of insurance. The city shall require all contractors performing public works projects or performing work on city property in connection with a purchase order, to maintain insurance of the types and with limits of liability not less than those set out below at the contractor's expense during the term (including the warranty period) of the purchase order from insurers reasonably acceptable to the city covering items, risks and operations required to fulfill the purchase order:
(a) Workers' compensation. Insurance that the contractor is obliged by law to carry that covers all of contractor's employees performing work under this purchase order ("worker compensation");
(b) Employer's liability insurance. Employer's liability insurance with a minimum limit of $1,000,000 per occurrence/$2,000,000 aggregate. Such insurance shall protect the city as an alternate employer against claims asserted against the contractor by the contractor's workers as "borrowed servants," statutory employees or maritime employees ("employer' liability");
(c) Commercial or comprehensive general liability insurance. Commercial or comprehensive general liability insurance, including contractual liability coverage, with a limit of $2,000,000 per occurrence/$5,000,000 aggregate;
(d) Automobile liability insurance. Automobile liability insurance with a combined bodily injury and property damage minimum limit of $1,000,000 per occurrence/$2,000,000 aggregate for all owned and leased vehicles;
(e) Aircraft. If aircraft are used in connection with a purchase order, aircraft liability insurance, including passenger liability insurance, with a combined single limit for bodily injury and property damage of $10,000,000 any one occurrence and a limit of $3,000,000 any one passenger;
(f) Other. Any other insurance in the types and amounts required by applicable law;
(g) Primary insurance. All insurance required above shall be primary to any insurance coverage available to the city regardless of whether the city carries primary or excess coverage;
(h) Waiver of subrogation and additional insured. The policies under divisions (I)(3)(c) through (I)(3)(f) above shall be endorsed to show the city as additional insureds and all insurance policies obtained by the contractor shall contain a waiver of subrogation in favor of the city. The policies provided for under this section shall contain a provision that any breach by seller of any warranty, covenant or representation in any of the policies shall not prejudice any claim by the city as an additional insured;
(i) Certificates of insurance and policies. Upon the city's request, all persons contracting with the city shall furnish to the city certificates of insurance demonstrating that the contractor, supplier or vendor has obtained the insurance coverage set out above and containing a statement that the insurance will not be materially changed or cancelled without at least 30 days' prior written notice to the city. All coverages must be written on forms reasonably acceptable to the city. Neither review nor failure to review the certificates shall constitute approval thereto or be deemed to waive or diminish city's rights under any purchase order. In the event of an accident or loss resulting in an insurance claim, the contractor, supplier or vendor, at city's request, shall provide city with certified copies of its insurance policies for which the city is shown as an additional insured. This obligation shall survive the termination of any contract or purchase order;
(j) Failure to comply. Neither failure to comply nor full compliance with the insurance provisions of this purchase order shall limit or relieve any contractor, vendor or supplier from its liability and/or indemnity obligations under any contract or purchase order. If a contractor, vendor or supplier fails or refuses to comply with the obligations set forth in the city's code of ordinances, the city, without prejudice to any other rights or remedies available to it under the purchase order or at law, may (1) treat the purchase order as having been repudiated by the contractor, vendor or supplier or (2) procure the required insurances and deduct the cost thereof from any amounts due hereunder or otherwise recover such amounts from the contractor, vendor or supplier;
(k) Sub-vendors and subcontractors. All contractors, vendors or suppliers shall ensure that each of their vendors and subcontractors shall maintain insurance which is required under any applicable laws or regulations, together with such other insurances of types and amounts necessary to cover risks inherent in the work of that vendor or subcontractor, as well as any other insurance that the city may deem necessary and such insurance which the contractor, vendor or supplier is obliged to effect in accordance with this section; and
(l) The City Council shall have the authority to require the additional insurance requirements if the City Council determines that it is in the best interest of the city to do so.
(1986 Code, § 6.5-3) (Ord. 1992-21, passed 6-15-1992; Ord. 2008-15, passed 9-15-2008; Ord. 2021-21, passed 9-7-2021)