Any expenditures for supplies, materials, equipment, a construction project or a contract obligating the Village, where the amount of the Village's obligation is in excess of ($1,500), must be approved by the Council and shall be approved only after competitive bidding as provided by the provisions of this chapter, unless such is covered by Section 208.09.
(a) Such expenditure shall be made the subject of a written contract unless excepted from such requirements by the Council in writing. A purchase order shall be a sufficient written contract in cases where the expenditure is in the usual and ordinary course of the Village's business.
(b) Notices inviting sealed competitive bids shall be published in the official newspaper at least five calendar days prior to the final date for submitting bids.
(c) Such notice shall briefly designate the supplies, materials or equipment desired, or the construction project to be undertaken, the amount of the cash, certified check or cashier's check required, if any, and the date, time and place of filing and opening of bids. The right shall BC reserved to reject any or all bids, or parts thereof.
(d) In all cases where sealed bids are invited, a copy of the official newspaper notice shall be posted on a public bulletin board in the Village Hall. The Agent shall mail copies of the official notice to such qualified vendors as he or she may deem necessary to give actual notice to interested bidders and to obtain competitive bidding.
(e) Unless prescribed by the Council, the Administrator shall prescribe the amount of any security to be deposited with any bid. Such deposit shall be in the form of cash, a certified or cashier's check, or a 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 fixed by Council, the Administrator 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.
(f) Bids shall be opened in public at the time and place designated in the notice requesting bids in the presence of the Agent, the Clerk and at least one other Village 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 Agent (as approved by the Administrator, if the Administrator is not acting as the Agent for this purchase) 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.
(g) When such bids are submitted to the Council, if the Council shall find any of the bids to be satisfactory it shall accept the bid of the lowest responsible bidder as described in Section 208.06. However, the Council shall have the right to reject any or all bids and to waive irregularities in bidding and to accept bids which do not conform in every respect to the bidding requirements.
(h) Subsections (b) through (g) of Section 208.06 shall apply to this section, provided however, that the word "Council" shall be inserted for the word "Agent" or "Administrator."
(i) At the time the contract is executed by the contractor, he or she shall file a bond executed by a surety company authorized to do business in the State of Michigan, to the Village, conditioned to pay all laborers, mechanics, subcontractors and materialmen 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 Administrator, and shall also agree to save the Village harmless from loss or damage caused to any person or property by reason of the contractor's negligence.
(j) All bids and deposits of 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 Village and the Council may, in its discretion, award the contract to the next lower responsible bidder or said contract may be re-advertised.
(Ord. 84. Passed 4-12-72.)