All purchases by the city, except as otherwise provided in this division, when the estimated cost thereof shall exceed $20,000.00, shall be purchased by formal written bilateral contract from the lowest responsible bidder after due notice inviting bids or proposals.
(1) Notice. Notice inviting bids or proposals shall be published in at least one official newspaper with general circulation in the county at least five days preceding the last day set for the receipt of proposals. The newspaper notice required shall include a general description of the supplies, services or construction to be purchased and shall state where bid blanks and specifications may be secured and the time and place for opening bids. The city shall also advertise pending purchases by a notice posted on the public bulletin board in city hall.
(2) City bidders list. The city shall also solicit bids or proposals from all responsible prospective bidders whose names appear on the bidders list maintained by the city. The city shall send a copy of the newspaper notice described in subsection (1) of this section to each bidder whose name appears on the city bidders list. The city shall mail the notices as aforesaid only to those bidders who ordinarily provide supplies, services or construction similar in character to those called for by the invitation for bids or request for proposals. Prospective bidders may have their names added to the city bidders list in accordance with procedures to be adopted by the city manager.
(3) bid deposits. When deemed necessary by the city, bid deposits shall be prescribed in the public notices inviting bids or proposals. Unsuccessful bidders shall be entitled to the return of surety where the city has required such. A successful bidder shall forfeit any surety required by the city upon failure to enter into a contract upon the terms contained in the bidder's bid or proposal within ten days after the award.
(4) bid opening. bids and proposals shall be submitted sealed to the city and shall identify the city invitation for bid or request for proposal number on the outer envelope. bids and propoals shall be opened at the time and place stated in the public notice. A tabulation of all bids and proposals received shall be posted for public inspection on the bulletin board in the city hall.
(5) Rejection of bids. The city shall have the authority to reject all bids or proposals when the public interest will be served thereby. The city may reject the bid or proposal of a bidder when:
a. The bid or proposal does not conform to the technical specifications;
b. The bid or proposal is facially nonconforming as to acceptable materials and components or services; or
c. The bid materially and substantially differs from the invitation for bids or request for proposals.
(6) Ineligible contractors. The city shall not solicit or accept the bid or proposal of a contractor who is in the default of payment of taxes, license fees or other monies due the city.
(7) Award to other than low bidder. When the award is not made to the lowest bidder, a full and complete statement of the reasons for placing the contract elsewhere shall be prepared by the city and filed with other documents relating to the invitation for bids or request for proposals.
(8) Tie bids. If all bids or proposals received are for the same total amount or unit price, quality and services being equal, the contract shall be awarded to any bidder with a place of business within the city. Where tie bids are received from more than one bidder with a place of business within the city or where all tie bidders do not have a place of business within the city, the city shall award the contract to one of the tie bidders by drawing lots in public.
(9) Performance bond. The city shall have the authority to require a performance bond before entering into any contract in such amount as the city shall find reasonably necessary to protect its interest.