Purchases of supplies and equipment shall be by bid procedures pursuant to this section. Bidding may be dispensed with only under conditions stated in section 3.12.060 of this chapter.
A. Formal Sealed Bid Procedures: Except as otherwise provided herein, public projects which exceed five thousand dollars ($5,000.00), as defined in California Public Contracts Code section 20162, and purchases of supplies and equipment of an estimated value at or greater than twenty five thousand dollars ($25,000.00), shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure as hereinafter prescribed.
B. Notice Inviting Formal Bids: Notices inviting formal bids shall include a general description of the article or service desired, shall state where bid documents and specifications may be secured, and the time and place for opening bids.
C. Published Notice For Formal Bids: Notices inviting formal bids shall be published at least ten (10) days prior to the date of opening of the bids. Notices shall be published at least once for nonpublic projects and at least twice, not less than five (5) days apart, for public projects, in a newspaper of general circulation in the Town.
D. Notice: The Department Director/Manager or designee shall advertise the pending formal purchases by publishing on the Town's website.
E. Bidder's Security: When a public project is involved, and in other cases when deemed necessary by the Department Director/Manager, formal bids shall be accompanied by security, either cash, cashier's check, certified check or surety bond, in a sum equal to ten percent (10%) of the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the Town is solely responsible for the delay in executing the contract. The Town Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder who is willing to execute the contract, or may reject all bids and re-advertise.
F. Formal Bond Requirements: A faithful performance bond and labor and material bond shall be required for all public projects, unless waived by the Town Council, in an amount reasonably necessary to protect the best interests of the Town. In addition, the Town Council shall have authority to require a faithful performance bond or other bonds before entering into a contract other than a public project contract. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.
G. Formal Bid Opening Procedure: Sealed bids shall be submitted to the Town Clerk, or designee and shall be identified as "bids" on the envelope. The Town Clerk, or designee, shall publicly open all bids at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection in the Town Clerk's Office during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.
H. Rejection Of Formal Bids: In its discretion, the Town Council may reject any and all bids presented and may cause re- advertising for bids pursuant to the procedure hereinabove prescribed. However, when all bids exceed the authorized budgeted amount, the Town Manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed herein.
I. Award Of Formal Bid Contracts: Except as otherwise provided herein, formal bid contracts shall be awarded by the Town Council to the lowest responsible bidder. The determination of "lowest responsible bidder" shall be at the discretion of the Town Council pursuant to findings and recommendations presented by the Department Director/Manager at the time of award of contract.
J. Tie Formal Bids: If two (2) or more formal bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the Town Council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract.
K. No Formal Bids Received: When no formal bids or no responsive bids are received, the Department Director/Manager is authorized to negotiate for written proposals, and his recommendation shall be presented to the Town Manager and award, if any, shall be made in accordance with applicable provisions prescribed herein.
L. Open Market Or Informal Bid Procedure:
1. Allowed: Purchases of supplies and equipment of an estimated value in the amount less than twenty five thousand dollars ($25,000.00) may be made by the Department Director/Manager in the open market pursuant to the procedure prescribed in this subsection, and without observing the procedure prescribed in subsection A of this section; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than five thousand dollars ($5,000.00).
2. Minimum Number Of Informal Bids: Open market purchases shall, wherever possible, be based on at least three (3) informal bids, and shall be awarded to the bidder offering the most advantageous bid to the Town after consideration of price, quality, durability, servicing, delivery time, standardization and other factors.
3. Notice Inviting Informal Bids: The Department Director/Manager, or designee shall solicit informal bids by written requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board at the Town offices.
4. Record Of Informal Bids: The Department Director/Manager shall keep a written record of all open market purchases and informal bids for a period of one year. This record, while so kept, shall be open to public inspection. (Ord. 277, 4-3-2018)