Chapter 3.04
CITY PURCHASING PROCEDURE

Sections:

3.04.010    Expenditures – Compliance required.

3.04.020    Delegated authority to purchase.

3.04.030    Cost information.

3.04.040    Exceptions to procurement policy bidding guidelines.

3.04.050    Sole source purchases.

3.04.060    Green purchasing policy.

3.04.070    Formal bids for public projects.

3.04.080    Informal bids for public projects.

3.04.090    Emergencies.

3.04.100    Other public projects.

3.04.010 Expenditures – Compliance required.

All expenditures of city funds in connection with purchases or other material procurements must be made strictly in accordance with the duly adopted budget and, in order that budgetary control may be effectively exercised, must be made in conformance with the city of Sonoma procurement policy, which shall be adopted by resolution of the city council. (Ord. 05-2009 § 1, 2009; Ord. 2001-6 § 2, 2001).

3.04.020 Delegated authority to purchase.

A. The city manager or designee shall be granted authority to purchase. The city manager or designee shall develop and maintain a current procurement policy for all city purchases in accordance with this chapter and any other applicable rules and regulations prescribed by the city council.

B. The city manager or designee shall have authority to purchase or contract for supplies and equipment required by any department in accordance with:

1. Amounts specified in the currently adopted city budget;

2. City of Sonoma procurement policy;

3. Other rules and regulations as prescribed by the city council or state law.

C. The city manager exclusively shall have authority to dispense with the requirements of subsection (B)(1) and (2) of this section if emergency conditions are deemed to exist. An emergency shall be deemed to exist if:

1. There is a great public calamity such as a flood, fire or earthquake;

2. There is an immediate need to prepare for national or local defense;

3. There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies and equipment to provide essential city services;

4. An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item. (Ord. 2001-6 § 2, 2001).

3.04.030 Cost information.

Notwithstanding SMC 3.04.060, any official of the city authorized to make purchases shall, before making same, secure accurate and comparative cost information concerning the articles to be purchased, and shall act to procure for the city the needed quality and quantity of supplies and equipment at the least expense to the city. (Ord. 2001-6 § 2, 2001).

3.04.040 Exceptions to procurement policy bidding guidelines.

Conditions which constitute sufficient cause to dispense with the competitive bidding guidelines are:

A. Situations where no bids have been received following bid announcements.

B. Emergency conditions which require that an order be placed with the most expedient source of supply as outlined in SMC 3.04.020(C).

C. Products or services for which other public agencies have gone through a competitive bidding process and are able to have the bid prices they received extended to the city of Sonoma.

D. Other items exempt by law. (Ord. 2001-6 § 2, 2001).

3.04.050 Sole source purchases.

Commodities and services which can be obtained from only one vendor are exempt from competitive bidding. All sole source purchases shall be supported by written documentation. Final determination that an item is a valid sole source purchase shall be made by the city manager exclusively. (Ord. 2001-6 § 2, 2001).

3.04.060 Green purchasing policy.

In an effort to comply with the State of California Public Contract Code, the city recognizes the state guidelines referencing purchase of recycled products. (Ord. 05-2011 § 1, 2011).

3.04.070 Formal bids for public projects

A. Public projects, as defined by Section 22002 of the California Public Contract Code, of more $125,000 or an amount as increased by the California State Controller’s Office pursuant to Public Contract Code Section 22032 shall be let by formal bid. In accordance with Public Contract Code Section 22037, a notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the city or, if there is no newspaper of general circulation printed and published within the jurisdiction of the city, in a newspaper of general circulation which is circulated within the jurisdiction of the city. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in California Public Contract Code Section 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids. If a contract is awarded, it shall be awarded by the city council to the lowest responsible bidder. If two or more bids are the same and the lowest, the city council may award the contract to whichever low bidder the city council chooses.

B. The city council, in its discretion, may reject all bids. The city council may also declare that the project can be more economically performed by employees of the city and reject all bids on that basis; provided, that written notice is provided to the apparent low bidder. The notice shall inform the apparent low bidder of the city’s intention to reject the bid. The notice shall be mailed at least two business days prior to the hearing at which the city intends to reject the bid.

If, after the first invitation of bids, all bids are rejected, after reevaluating its cost estimates of the project, the city council shall have the option of any of the following:

1. Abandoning the project or re-advertising for bids.

2. Modifying the project and re-advertising for bids by use of formal bids or by the informal bidding process provided for in SMC 3.04.080, depending on the project amount.

3. By passage of a resolution by a four-fifths vote declaring that the project can be performed more economically by the employees of the city, have the project done by force account without further complying with this section.

C. If no bids are received, the project may be performed by city employees by force account or by negotiated contract, awarded by the city council, without further compliance with this section.

D. The city council shall adopt plans, specifications and working details for all public projects exceeding $125,000. Any person may examine the plans, specifications or working details, or all of these, for any project.

E. The monetary thresholds and requirements specified herein shall be adjusted automatically so as to remain in conformance with the requirements of Section 22032 of the Public Contract Code, as it may be amended from time to time. (Ord. 05-2011 § 2, 2011).

3.04.080 Informal bids for public projects.

A. Public projects, as defined by Section 22002 of the California Public Contract Code, in the amount less than or equal to $30,000 or an amount as increased by the California State Controller’s Office may be performed by city employees by force account, by negotiated contract or by purchase order. Such contracts may also be let by the informal procedures set forth in this section. Public projects of between $30,000 and $125,000 or an amount as increased by the California State Controller’s Office pursuant to Public Contract Code Section 22032 may be let to contract by the informal procedures set forth in this section. Public projects of more than $125,000 or an amount as increased by the California State Controller’s Office shall, except as otherwise provided in the California Public Contract Code, be awarded following formal bidding procedures in conformance with SMC 3.04.070. Notwithstanding anything to the contrary in this section, these monetary thresholds and requirements shall be adjusted automatically so as to remain in conformance with the limits and requirements of Section 22032 of the Public Contract Code, as it may be amended from time to time.

B. Informal Bid Procedures for Public Contracts.

1. The city shall maintain a list of contractors in accordance with the provisions of Section 22034 of the Public Contract Code and the criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission (“Commission”).

2. A notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list referred to above. Notice shall also be mailed to all construction trade journals as specified by the Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids shall be sent exclusively to such contractor or contractors.

3. The mailing of notices to contractors and construction trade journals shall be completed not less than 10 calendar days before bids are due.

4. The notice inviting informal bids shall describe the project in general terms and further specify how more detailed information about the project may be obtained. The notice shall also state the time and place for the submission of bids.

5. If the bids received are in excess of the authorized informal bid limit per Public Contract Code, the city council may, by adoption of a resolution by a four-fifths vote, award the contract for an additional 10 percent to the lowest responsible bidder if the city council determines the cost estimate for the project was reasonable.

C. The city manager is authorized to award and execute all contracts of $25,000 or less. (Ord. 05-2011 § 3, 2011).

3.04.090 Emergencies.

In cases of emergency when repair or replacement are necessary, the city council may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the governing body, by contractor or by a combination of the two. In the case of emergency, if notice for bids to let contracts will not be given, the city shall comply with Section 22050 of the California Public Contract Code. (Ord. 05-2011 § 4, 2011).

3.04.100 Other public projects.

When contracting to perform other public projects that do not fall within the definition of “public project” as defined in Section 22002 of the California Public Contract Code, the city may utilize the bidding procedures set forth in SMC 3.04.070 and 3.04.080 depending on the dollar value of the public project. (Ord. 05-2011 § 5, 2011).