§ 2-351. Competitive bidding—Generally.

(a)

Where purchases to be made or contracts to be entered into are to be based upon opportunity for free competition in accordance with the requirements of section 2-48, the city Charter or any other law, such competition shall be subject to the provisions of this division. The city manager shall be the purchasing agent.

(b)

Expenditures requiring free competition shall be made the subject of a written contract when directed by the city council. A purchase order shall be a sufficient written contract in cases where the expenditure is in the usual and ordinary course of the city's affairs.

(c)

The purchasing agent shall solicit bids from a reasonable number of such qualified prospective bidders as are known to him by sending each a copy of the notice requesting bids and notice thereof shall be posted in the city hall. Bids shall also be solicited by newspaper advertisement when directed by the city council.

(d)

Unless prescribed by the council, the purchasing agent 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. The amount of such security shall be expressed in terms of percentage of the bid submitted. Unless fixed by the council, the purchasing agent 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.

(e)

Bids shall be opened in public at the time and place designated in the notice requesting bids in the presence of the purchasing agent and the city clerk, but another city officer may be substituted for either the purchasing agent or the clerk. 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 specified in this subsection, the council may direct that bids be opened at a council meeting.

(f)

When such 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 and to waive irregularities in bidding and to accept bids which do not conform in every respect to the bidding requirements.

(g)

At the time the contract is executed by him, the contractor shall file a bond executed by a surety company authorized to do business in the state, to the city, 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. Such contractor shall also file evidence of public liability insurance in an amount satisfactory to the purchasing agent, and agree to save the city harmless from loss or damage caused to any person or property by reason of the contractor's negligence.

(h)

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 within ten days after the contract has been awarded, or file any bond required within the same time, the deposit accompanying his 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 the contract may be readvertised.

(Code 1965, § 1.171)