Chapter 4.16


4.16.005    Definitions. Revised 7/18

4.16.010    Competitive bidding required.

4.16.015    Exceptions to competition requirement.

4.16.020    Purchase and sale generally.

4.16.030    Bid invitation. Revised 7/18

4.16.040    Bid deposits.

4.16.045    Pre-bid conferences. Revised 7/18

4.16.050    Bid submittal and opening.

4.16.060    Rejection of bids.

4.16.070    Award of contract.

4.16.090    Contractor bonding.

4.16.100    Professional services contracts.

4.16.110    Construction contracts – Letting.

4.16.120    Construction contracts – Administration.

4.16.130    Disbursement setoffs. Revised 7/18

4.16.005 Definitions. Revised 7/18

As used in this chapter, the following words and phrases shall be defined as stated in this section:

“Cost,” as applied to a proposed purchase of supplies, means the anticipated total cost of the supplies at the point in Utqiaġvik at which they are to be delivered to the city, including the purchase price of the supplies and the cost of transporting them to Utqiaġvik.

“Value,” as applied to a proposed sale of personal property, means the anticipated net proceeds of the proposed sale to the city, after deducting all costs including the direct cost of conducting the sale and the cost of delivering the property to the purchaser. (Ord. 02-2017 §2(part); Ord. 2005-14 §2(part))

4.16.010 Competitive bidding required.

All purchases of and contracts for supplies, services, construction and all sales of personal property shall, except as specifically provided in this chapter, be based on competitive bids. (Ord. 2005-14 §2(part))

4.16.015 Exceptions to competition requirement.

A. The council shall, by resolution, authorize a purchase, contract or sale, provide the reasons therefor and specify how the purchase, contract or sale shall be made, when the purchase, contract or sale is a purchase of or contract for one or more of the following:

1. All purchases of and contracts for supplies, services, construction and all sales of personal property purchased from another unit of government at a price deemed below that obtainable from private dealers;

2. All purchases of and contracts for supplies, services, construction and all sales of personal property where the mayor determines in writing that the city’s requirements reasonably limit the source for the supplies, services, professional services or construction to one specific person or entity;

3. All purchases of and contracts for supplies, services, construction and all sales of personal property addressing an imminent threat to public health, welfare or safety.

B. This section applies to contracts for supplies, contracts for services, but not including professional services as defined by Section 4.16.100, contracts for construction, and contracts for all sales of personal property so long as one or more of the conditions in this section are met. (Ord. 2005-14 §2(part))

4.16.020 Purchase and sale generally.

A. Only purchases of and contracts for supplies, services, construction and all sales of personal property where the estimated cost of such purchase and/or construction exceeds twenty-five thousand dollars shall be purchased by formal, written contract from the lowest responsible bidder, after due notice inviting proposals.

B. When the estimated cost of supplies or contractual services or the estimated value of a sale exceeds five thousand dollars but does not exceed twenty-five thousand dollars, the mayor shall invite at least three informal written proposals without observing the procedure prescribed for the award of formal bids.

C. When the estimated cost of supplies or contractual services or the estimated value of a sale does not exceed five thousand dollars, such purchase or contract shall be made with such competition as is reasonable and practical under the circumstances. (Ord. 2005-14 §2(part))

4.16.030 Bid invitation. Revised 7/18

A. When the estimated cost of supplies or contractual services or estimated value of a sale exceeds twenty-five thousand dollars, notice inviting bids shall be published at least five days preceding the last day set for the receipt of proposals or bids.

B. When the estimated cost of supplies or contractual services or the estimated value of a sale does not exceed twenty-five thousand dollars, no notice shall be required.

C. The mayor may also solicit bids from all responsible prospective suppliers who have indicated an interest in bidding on city contracts.

D. The mayor shall also advertise all pending purchases or sales exceeding five thousand dollars by a notice posted on the public bulletin board in the City Hall. (Ord. 15-2017 §16: Ord. 2005-14 §2(part))

4.16.040 Bid deposits.

When deemed necessary by the mayor, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to return of surety where the mayor has required such. A successful bidder shall forfeit any surety required by the mayor upon failure on his or her part to enter into a contract within ten days after the award. (Ord. 2005-14 §2(part))

4.16.045 Pre-bid conferences. Revised 7/18

A. When deemed necessary by the mayor, pre-bid conferences may be held at least seven days before the last day for submitting bids.

B. Pre-bid conferences for city contract projects shall be held in Utqiaġvik, Alaska, unless the city council deems it necessary to conduct the conference in another location. (Ord. 02-2017 §2(part); Ord. 2005-14 §2(part))

4.16.050 Bid submittal and opening.

A. Submitting. Bids shall be submitted to the department head of the city department requesting the bids and shall be identified as bids on the envelope.

B. Opening. Bids shall be opened in public at the time and place stated in the public notices, which shall also be the closing time for submission of bids.

C. Tabulation. A tabulation of all bids received shall be posted for public inspection. A copy of the tabulation shall be forwarded to the city council for acceptance or rejection of bids. (Ord. 2005-14 §2(part))

4.16.060 Rejection of bids.

The city council shall have the authority to reject all bids, parts of bids, or all bids for any one or more supplies or contractual services included in the proposed contract, when the public will be served thereby. (Ord. 2005-14 §2(part))

4.16.070 Award of contract.

A. Authority to Award Contracts. The city council shall have the authority to award contracts within the purview of this chapter which have an estimated cost in excess of twenty-five thousand dollars. The mayor, with the exception of contracts authorized under Section 4.16.100, shall have the authority to award contracts within the purview of this chapter which have an estimated cost not exceeding twenty-five thousand dollars.

B. Lowest Responsible Bidder. When competitive bidding is possible, contracts shall be awarded to the lowest responsible bidder. In determining the lowest responsible bidder, in addition to price, the city council shall consider:

1. The ability, capacity and skill of the bidder to perform the contract or provide the service required;

2. Whether the bidder can perform the contract or provide the service promptly or within the time specified, without delay or interference;

3. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

4. The quality of performance of previous contracts or services;

5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

6. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;

7. The quality, availability and adaptability of the supplies or contractual services to the particular use required;

8. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

9. The number and scope of conditions attached to the bid;

10. The standardization requirements. (Ord. 2005-14 §2(part))

4.16.090 Contractor bonding.

Contracts for construction, alteration or repair of public buildings or public works, where the cost is in excess of four hundred thousand dollars, shall be awarded only after the contractor has provided payment and performance bonds pursuant to AS 36.25.010(a).

A. There are no bonding requirements under this section for public construction or public works contracts where the cost is one hundred thousand dollars or less.

B. Where the cost of a public construction contract exceeds one hundred thousand dollars but does not exceed four hundred thousand dollars, the city is exempt from the bonding requirements of AS 36.25.010(a), providing:

1. The contractor has been a licensed contractor in the state for at least two years;

2. The contractor certified that he has not defaulted on a contract during the last three years;

3. The contractor submits a financial statement prepared within the last nine months certified by a public accountant, demonstrating that the contractor has a net worth of not less than twenty percent of the amount of the contract;

4. The total amount of all contracts which the contractor anticipates performing during the contract period does not exceed his or her net worth by more than seven times. (Ord. 2005-14 §2(part))

4.16.100 Professional services contracts.

A. A contract for engineering, architectural, legal, medical or other professional services shall not be binding and effective until it has been approved by the city council. Any such contract awarded by the council is deemed approved. Any other such contract shall be immediately submitted to the council for approval, which may be given by motion.

B. All such contracts for professional services shall be awarded after public notice and mail solicitation inviting proposals for the furnishing of the required services, and the selection of professional assistance shall be based on competence, skill and experience. (Ord. 2005-14 §2(part))

4.16.110 Construction contracts – Letting.

A. Contract Defined. For the purposes of this section, “contracts” means and includes construction contracts. The term shall not include professional services and other contractual services which are in their nature unique and not subject to competition.

B. Competitive Bidding Required. All contracts shall be based on competitive bids, except as specifically provided in this chapter.

C. Formal Contract Procedure. All contracts shall be awarded by formal, written contract to the lowest responsible bidder, after due notice inviting proposals following the procedures established in Sections 4.16.020 through 4.16.070, unless otherwise provided in this chapter.

D. No contract shall be subdivided to avoid the requirements of this section or Section 4.16.120. (Ord. 2005-14 §2(part))

4.16.120 Construction contracts – Administration.

All contracts, as defined in Section 4.16.110(A), shall be administered by the mayor in accordance with the following provisions:

A. Change Order, Proposal Required. Any changes required in the work shall be made after receiving a written proposal from the contractor for additions to or deductions from the original contract sum for changes proposed.

B. Change Orders by Administration. Upon receipt of a proposal for a change in the contract sum in an amount not exceeding one thousand dollars and after determination that the contractor’s proposal is reasonable, the mayor may issue a written change order. The aggregate sum of change orders so authorized shall not exceed five percent or one thousand dollars of the original contract sum, whichever is greater.

C. Change Orders by Council. When a proposed change order exceeds the limits set forth in subsection B of this section, the proposal, together with recommendations of the mayor, shall be forwarded to the council. The council shall then determine whether the proposal shall be accepted or rejected.

D. Emergencies. Whenever a change in the work is required, immediately upon the discovery of unforeseen conditions, the mayor shall have the power to order such change. If the change is otherwise subject to subsection C of this section, a full report shall be made to the council not later than the second regular meeting following the change. The emergency nature of such change order shall be determined by the mayor.

E. No partial payment for work completed shall be made to a contractor without approval of the mayor of the quantities and values submitted by the contractor. No reduction in retained percentage not called for in the contract shall be made without prior approval of the city council. (Ord. 2005-14 §2(part))

4.16.130 Disbursement setoffs. Revised 7/18

A. Disbursement of moneys to a person, firm or corporation will be made only after the various receivable accounts of the general government and municipal utilities funds have been reviewed for outstanding balances owed. The disbursement will be reduced by setting off the amount of indebtedness due to the city from such person, firm or corporation.

B. All contracts to which the city is a party which will or may involve the disbursement of city funds shall contain the following clause or its substantial equivalent: “Disbursement of monies by the City of Utqiaġvik hereunder shall be subject to set-off pursuant to the provisions of Section 4.16.130 of the Utqiaġvik Municipal Code.” Such contracts include, but are not limited to, oral contracts, employment contracts, construction contracts, purchasing contracts, and contracts of the municipal utilities system, including customer’s deposits. (Ord. 02-2017 §2(part); Ord. 2005-14 §2(part))