Financial Policy Handbook 2017

responsive responsible bidder determined as provided by law, or it may reject all bids. The City shall retain the bid security of the successful bidder until the City approves the contract, performance bond, and certificate of insurance. Prior to opening bids, the City may inquire as to whether all bidders have received and/or noted all addendums to the plans and specification, and document responses thereto in the record. The City Council shall pass a resolution approving any expenditure over $100,000 for a public improvement project. The City may use a State bid (ie: project through IDOT) to satisfy the competitive bidding requirements to the extent allowed by law. Architectural, landscape architectural or engineering design services procured for a public improvement are not subject to competitive bid or competitive quote procedures. For projects in excess of $130,000 up to $1,000,000 change orders that exceed 10% of the contracted project cost require City Council approval. For projects in excess of $1,000,000, change order that exceed 5% of the contracted project cost require City Council approval. All other requested change orders shall be reviewed and approved by the City’s designated project representative. 4. Use of City Employees If the City is following the competitive quotation process, a quote can be considered in which the work is to be provided by City employees. The quote must contain the same detail as required for quotes from contractors. The amount of estimated sales and fuel tax, the premium cost for the performance and payment bond identified in a contractor quote is to be deducted from the contractor’s price for determining the lowest responsible quote. If no quotes are received to perform work, or if the City quote is the lowest, the City may self-perform the work. Cities can use City employees to perform repair or maintenance work without having to obtain competitive bids or quotations. If the project must be competitively bid, City employees cannot perform the work. 5. Iowa Preference Given Domestic Products. By virtue of statutory authority, a preference will be given to products and provisions grown and coal produced within the State of Iowa. Reciprocal Resident Bidder and Labor Force Preference. When a contract for a public improvement is to be awarded to the lowest responsible bidder, a resident bidder shall be allowed a preference as against a nonresident bidder from a state or foreign country if that state or