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The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value as established by resolution of the city council on a periodic basis, inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, shall be made by the formal procedures set forth in this section.

A. Notice Inviting Bids. Notices inviting formal bids or proposals from prospective vendors shall be published and posted no later than ten calendar days before the submission date for formal bids in accordance with Government Code Section 20162, Bids Requiring Notice. The notices shall describe the requested goods or supplies, equipment, materials, or nonprofessional services in general terms, how to obtain more detailed information concerning the procurement, and state the time, place, and deadline for submission of sealed bids or proposals. The notice inviting bids shall also include specifications, and all contractual terms and conditions applicable to the procurement.

B. Published Notice. The notice inviting formal bids or proposals shall be published and posted in at least two public places in the town that have been duly designated by the city clerk as the official places for the posting of public notices and on the town’s official website. In addition, such notice may also include trade publications when practicable. The public notice shall state the place, date and time of the bid opening.

C. Bidders’ List. The town may require that a bidders’ list be developed listing and approving qualified vendors before the vendor is eligible to submit a bid or proposal. If a bidders’ list is used it must be stated in the notice inviting bids.

D. Bidders’ Security. When deemed necessary, the town shall require bidders’ security. Bidders’ security shall be in accordance with the provisions of the California Public Contract Code.

E. Bid Opening Procedure. Sealed bids or proposals shall be submitted to the office of the city clerk and shall be identified as formal competitive bids or proposals on the outside of the sealed envelope. The city clerk shall store all sealed bids in a secure location until opening. The city clerk shall open all bids or proposals in public at the time and place stated in the notice inviting bids, with a witness present. A tabulation of all bids or proposals received shall be open for public review and inspection in the office of the city clerk during regular business hours for a period of not less than thirty calendar days after the bid opening.

F. Rejection of Bids. In its sole discretion, the city council may reject any and all bids or proposals for any reason or for no reason, and may suspend, delay, or otherwise cancel the procurement, or may order the readvertisement of the request for bids. If all formal bids or proposals are rejected and the city council resolves by a recorded majority vote of council that is present that the procurement can be performed more economically by force account, by informal procedures, or through open market purchases, then it may dispense with further formal competitive public bidding.

G. Tie Bids. If two or more formal bids or proposals received are the same and are the lowest, the city council may accept the one it chooses, and the city council may allow for a local vendor preference or accept the lowest bid made after negotiation with the tie bidders.

H. Award of Contracts. Contracts subject to formal procedures shall be awarded by the city council to the lowest responsive and responsible bidder consistent with the best qualified vendor selection criteria set forth in Section 3.16.130, except as otherwise provided herein. The decision of the city council shall be final. Contracts shall be finalized and executed with reasonable promptness.

I. Contract Execution. Only the mayor or city manager is authorized to sign and enter into contracts on behalf of the town. The city manager may sign contracts and agreements when the total value of the contract is less than the amount set by resolution for formal procedures. No other employee is authorized to sign a contract binding the town, and any contract inappropriately signed is voidable. Before a contract is signed by the city manager or placed on a city council agenda for approval, the contract must: include appropriate insurance and indemnification provisions reviewed by the town’s risk manager or city attorney; be approved as to form by the city attorney; be approved as to budget availability and purchasing procedural compliance by the finance director; and executed by the other party (except in the instance of a public entity).

J. No Bids Received. If no bids are received, the purchase may be let by the informal procedures set forth in Section 3.16.110.

K. Performance Bonds. The town shall have authority to require that a performance bond be posted before entering into a contract in such amount as may be reasonably necessary to protect the best interests of the town. If a performance bond is required, the form and amount of the bond shall be described, whenever possible, in the notice inviting bids, and shall be in a form approved by the city attorney. Release of performance bonds shall be made only upon successful completion of the work and approval and acceptance by the purchasing officer or city council.

L. Defects, Irregularities, and Informalities. The city council may, in its sole discretion, waive any defect, irregularity, or informality in the formal bids or proposals or in the competitive procedures established in this section as long as no unfair advantage results, and no such defect, irregularity, or informality shall void any contract entered into by the town once executed.

M. Storage of Sealed Bids. All opened bid materials, after award, are to remain in the possession of the city clerk for the time prescribed by law. (Ord. 595 § 1 (Exh. A (part)), 2012)