§ 2-752. Purchases in excess of $50,000.00.

Except as otherwise provided in this division, the purchase of commodities or services of an estimated value of over $50,000.00 shall be approved by the city council and may be by purchase order and/or other written contract with the vendor submitting the lowest responsible bid whose bid has been solicited, received and approved, pursuant to the following procedures:

(1)

Notice inviting bids. Except for those bids that are required by statute to be advertised in a newspaper, notices inviting bids shall be published electronically on the city's website and an Internet website designated by the city, and generally used for municipal advertisement of commodities and services, and shall include a general description of the commodities or services to be purchased, a statement of where bid documents may be obtained, and the date, time, and place of the public opening of bids.. Sealed bids shall also be solicited from responsible prospective vendors, including those on the registered vendor's list.

(2)

Security (bid bonds). When the estimated cost of a public works contract is $150,000.00 or higher, or when otherwise deemed necessary by the city manager, security in the form of a bid bond issued by a surety company licensed to do business in the state or a cash bond in an amount equal to ten percent of the bid shall be prescribed in the public notices inviting bids. When the city manager deems it necessary to require a bid bond for bids less than $150,000.00, the bond shall be in an amount equal to five percent of the bid. A vendor shall forfeit a bid security upon a refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is solely responsible for the delay in executing the contract. The city council may, upon the refusal or failure of the successful vendor to execute the contract, award the contract to the next lowest vendor.

(3)

Bid opening procedures. Sealed written bids shall be returned to the city and identified as bids on the envelope, together with other information as may be specified in the invitation to bid. Bids shall be opened in public on the date and at the time and place stated in the public notices. All bids shall be subject to the Florida Public Records laws and F.S. § 255.0518.

(4)

Rejection of bids. The city council may authorize the city manager to:

a.

Reject all bids;

b.

Reject all bids and re-advertise for bids, pursuant to the procedure prescribed in this section; or

c.

Reject all bids and direct that the project or service in question be performed by the city upon determining that such activities are in the best interest of the city.

(5)

Performance and payment bonds. A performance bond and a payment bond, or a "contract bond" combining the elements of a performance and a payment bond, issued by a surety company licensed to do business in the state, may be required before entering into a contract, in an amount at least equal to the contract price or such higher amount as may be found reasonably necessary to protect the best interests of the city except, in limited circumstances, such as incremental services contracts or blanket purchase orders, where it has been determined by the department director that the potential liability resulting from the performance or payment under the contract is an amount less than the full contract price. The department director shall obtain the approval of the city manager to require a bond for less than the full contract price before proceeding with the bid process. If such bond is required, the form and amount of the bond shall be described in the notice inviting bids. Bonds required hereunder shall be subject to all other provisions of this section and this Code.

(6)

Security in lieu of performance and payment bonds. In lieu of the bond required by this section, a contractor may file with the city an alternative form of security in the form of cash, a money order, a certified check, a cashier's check, an irrevocable letter of credit, or a security of a type listed in F.S. § 625.301 et seq. Any such alternative form of security shall be for the same purpose and be subject to the same conditions as those applicable to the bond required hereunder. The appropriate representative of the city as described in subsection (5) of this section shall make the determination of the value of the alternative form of security.

(7)

Change orders. Any change in the contract price, scope of work or time for completion of any project following the award of a contract shall be by a written change order, approved by the city council and executed with the same formalities as the contract. However, the city manager may approve and execute change orders without city council approval subject to the following limitations:

a.

The city manager may approve any change orders for up to a maximum of ten percent over the award of the city council. The scope of any project may not be changed without prior approval of the city council. No increase in contract price shall be approved unless there are sufficient funds available for such purpose.

b.

Contract price decreases may be approved without limitation.

c.

The time for completion may not be extended by more than 60 days, in any one change or cumulatively for the same project, beyond the most recent city council-approved contract completion time.

d.

No change order shall materially change the scope of the work unless approved by the city council.

e.

In the event the lowest, most responsive and responsible bid for a project exceeds available funds, and the city council does not make available additional funds, the city manager is authorized, when time or economic considerations preclude re-solicitation of bids, to negotiate an adjustment of the bid price as long as the scope of work is not materially changed with the lowest, most responsive and responsible bidder, in order to bring the bid within the amount of available funds. Final negotiations shall be in written form as approved by the city manager.

(Ord. No. 2005-10-48, § 2(art. II, § 10), 2-9-2005; Ord. No. 2009-23-195, § 2, 9-21-2009; Ord. No. 2011-04-246, § 2, 3-23-2011; Ord. No. 2012-08-281, § 4, 6-27-2012)