Sonora Municipal Code § 3.60 Purchasing

The purpose of this chapter is to establish procedures for the purchase and procurement of supplies, equipment and services and to provide efficiencies of public projects by implementing the California Uniform Public Construction Cost Accounting Act (UPCCAA).

It is the policy of the City of Sonora to obtain supplies, equipment and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases and contracts, and to clearly define authority for the purchasing and contracting function.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

As used in this chapter, the following words and phrases have the meanings ascribed to them in this section.

"Contract" means a written agreement between the city and a vendor, including a purchase order issued to a vendor. It is a binding agreement based upon mutual assent of the parties, made for a lawful purpose, between competent parties, in the form required by law and generally supported by consideration.

"Formal bid" or "offer" means a bid which must be submitted in a sealed, marked envelope and in conformance with a prescribed format, to be opened at a specific time.

"Informal bid" means an unsealed competitive offer conveyed by letter, telephone facsimile/telegram, or other means and under conditions different from those required of formal bidding.

"Local business enterprise" means a business entity with fixed offices or distribution points located within the boundaries of the city, listed in the business license tax files with a city business address and designating, if appropriate, for sales tax purposes, the city as a point of sale for retail transactions.

"Professional services" means accounting, appraisal, architectural, auditing, engineering, environment, land surveying, construction, management, legal, financial planning, medical or planning services or any service with similarly professional, scientific, expert or highly technical skill.

"Public contract" means those projects enumerated in Public Contract Code Section 22002(c) and (d), as amended, which definitions are incorporated by reference.

"Purchaser" means a city staff member primarily responsible for purchasing any given supplies, equipment or services, with dollar limits as defined in Administrative Policy No. 33.

"Services contract" means: (1) a contract directly engaging the time and effort of a contractor whose primary purpose is to perform identifiable tasks rather than to furnish an end item of supply, or (2) the rental of equipment, machinery and other personal property. A service contract may be either a nonpersonal or a personal contract. It can also cover services performed by either professional or nonprofessional personnel, whether on an individual or organizational basis.

"Sole source procurement" means an award for a commodity or service to the only known capable supplier, occasioned by the unique nature of the requirements, the supplier or market conditions.

"Supplies" means all supplies, materials and equipment.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

Subject to the availability of funds and the procedures set forth in this chapter, the city administrator is authorized to bind the city, by written contract or purchase order, involving an expenditure not to exceed twenty-five thousand dollars or the purchase of supplies, professional or contractual services in any one transaction, without advertising or previous specific action by the city council, to be furnished to the city for which funds have been budgeted and appropriated therefor.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

Unless otherwise provided herein all contracts for supplies and professional or contractual services involving an expenditure of more than twenty-five thousand dollars shall be awarded by the city council. No contract shall be binding or have any force or effect until signed by the city administrator.

Specific supply purchases or specific remodeling of city buildings included in the city council approved fiscal budget need not be approved again by the city council.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

The city shall not be restricted to engaging in a competitive bidding procedure when seeking to retain specially trained persons or firms to provide services in connection with financial, economic, accounting, engineering, administrative, or other matters involving specialized expertise or unique skills. In securing professional services, the city shall utilize a request for proposal (RFP) procedure, the method and details of which may be set forth by administrative policy adopted by the city. Award of a contract shall be on the basis of demonstrated competence and on professional qualifications and timeliness necessary for the satisfactory performance of the services required.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

A. All purchases of and contracts for supplies, materials, equipment and services, not defined in Public Contract Code Sections 22002-22003, shall be based, wherever possible, on competitive bids. However, all bidding may be dispensed with as follows: for emergency purchases, where the goods or services can be obtained from only one source, or as designated by Administrative Policy No. 33.

B. All public projects defined by Public Contract Code Sections 22002-22003 the city may elect to utilize the UPCCAA.

C. All department managers that initiate a public improvement project must ensure delivery of the improvement complies with the UPCCAA.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

For purchases outside Public Contract Code Sections 22002-22003 involving over ten thousand dollars but not greater than twenty-five thousand dollars, purchaser shall make a reasonable effort to obtain competitive bids, the number determined by Administrative Policy No. 33, without the necessity of advertising, but with solicitation by letter, telephone or otherwise. Purchase shall then be made from the lowest possible bidder. In the event competitive bids are not obtained, purchaser shall document the reason(s).

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

Formal written contracts shall be used for all purchases of supplies or services or combination thereof, in excess of twenty-five thousand dollars. The city attorney will approve the form and legality of all formal written contracts before execution thereof.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

In determining the responsible bidder, the following shall be considered, in addition to price:

A. The quality of supplies offered;

B. The ability, capacity and skill of the bidder to perform the contract or provide the supplies or services required;

C. Whether the bidder can perform the contract or provide the supplies or services promptly, or within the time specified, without delay or interference;

D. The sufficiency of the bidder's financial resources and the effect thereof on his/her ability to perform the contract or provide the supplies or services;

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

F. The quality of the bidder's performance on previous orders or contracts with the town;

G. Litigation involving the bidder on previous orders or contracts with the city;

H. The previous and existing compliance by the bidder with laws and ordinances relating to the subject of the purchase or contract;

I. The ability of the bidder to provide future maintenance and service where such maintenance and service is desirable; and

J. Payment of local sales or use taxes that will accrue to the city.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

Notwithstanding anything in this chapter to the contrary, the city administrator or his/her designee may authorize the purchase of technical or specialized supplies or equipment by competitive negotiation when:

A. The supplies, equipment or services are such that suitable technical performance specifications are not readily available;

B. The city is not able to develop descriptive specifications;

C. The quality of the supplies and equipment cannot be accurately determined by reference to their specifications alone; and

D. Such a method of purchase would be more advantageous to the city.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

Purchases of goods or services which can be obtained from only one source may be made without advertising and after approval by the city council. The city council may authorize purchase of supplies, equipment and services without complying with the above procedures when in the opinion of the council, compliance with the procedures is not in the best interest of the city. The city administrator may authorize emergency purchases of supplies, equipment or services. Emergency purchases are those required to prevent the immediate interruption or cessation of necessary city services or to safeguard life, property or the public health and welfare.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

In those cases where the procurement of any product or service is obtainable, only from a single or sole source, the purchaser, upon approval of the city council or city administrator (depending on contract price), shall negotiate, with the purveyor of such product or service, fair and equitable terms. Purchases from regulated public utilities may be made pursuant to applicable tariff without regard to this chapter.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

The purchaser may approve any changes within an approved contingency of five percent of the total purchase order. Any change orders to purchases where the approved contingency will be exceeded, must be approved by the city administrator. Any time an appropriation limit will be exceeded city council approval is required to approve additional appropriation.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

It is unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this chapter.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

Nothing contained in this chapter shall prohibit the participation by the city in any voluntary cooperative purchasing agreement or program entered into between the city and the state, county or other municipalities or agencies. City staff is empowered and authorized to act under the provisions of this chapter to procure for the city supplies and equipment in conjunction with such voluntary cooperative purchasing agreements or programs which may be available and advantageous to the city. All formal contract and bidding procedures to be followed in such cases shall be those specifically enumerated in the voluntary cooperative purchasing agreement or program.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)

The city council elects to participate in the California Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.) and to provide procedures as established by the California Uniform Construction Cost Accounting Commission.

(Adopted by Ord. 875 on 11/16/2020)

A. A public project of sixty thousand dollars or less may be performed by city force account, by negotiated contract, or by purchase order.

B. A public project greater than sixty thousand dollars and less than or equal to two hundred thousand dollars may be let to contract by informal bid procedures, as established in Section 3.60.190.

C. A public project of more than two hundred thousand dollars shall, except as otherwise provided in Section 3.60.190(D), be let to contract by formal bidding procedure in accordance with all applicable provisions of the California Public Contract Code or successor statute.

D. The described project cost limits of subsections A through C shall be increased automatically as authorized pursuant to the adjustments made by the California Uniform Construction Cost Accounting Commission under Public Contract Code Section 22020 or successor statute.

(Adopted by Ord. 875 on 11/16/2020)

A. Cost Estimate. For public projects qualifying under subsection A of Section 3.60.170, the appropriate department head shall obtain a cost estimate from the project engineer or architect prior to negotiating a contract with a responsible contractor. For any city force account work, the department head shall first comply with the guidelines established by the California Uniform Construction Cost Accounting Commission in determining the cost of the public work.

B. Award of Contract. The city administrator shall have the authority to award and to execute any contract for the public work qualifying under subsection A of Section 3.60.170 in an amount up to and including twenty-five thousand dollars with the city council awarding bids up to and including sixty thousand dollars.

(Adopted by Ord. 875 on 11/16/2020)

This section is applicable to those projects that qualify under subsection B of Section 3.60.170.

A. Maintenance of Contractors List. A list of contractors shall be developed and maintained in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

B. Notice Inviting Informal Bids.

1. Contents of Notice. The notice inviting bids shall describe the project in general terms, set forth how to obtain more detailed information about the project, state the time and place for submission of bids, and whether bid deposit or bond and faithful performance bond will be required.

2. Mailing of Notice. Where a public project subject to the provisions of this section is to be performed, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection A of Section 3.60.200, and/or to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Public Contract Code Section 22036 or successor statute.

3. Timing of Notice. All mailing of notices shall be completed not less than ten calendar days before bids are due.

4. Additional contractors and/or construction trade journals. Additional contractors and/or construction trade journals may be notified at the discretion of the city, provided however if there is no list of qualified contractors maintained by the city for a particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission.

5. Proprietary Products or Services. 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 may be sent exclusively to such contractor or contractors.

C. Award of Contract. The city administrator shall have the authority to award and to execute any contract for the public work qualifying under subsection B of Section 3.60.170 in an amount up to and including twenty-five thousand dollars with the city council awarding bids up to and including two hundred thousand dollars. The contract shall be awarded to the lowest responsive and responsible bidder whose bid or proposal fulfills the purpose intended according to criteria designated in the solicitation. The city may waive any minor bid irregularities.

D. Bids in Excess of Statutory Amount. If all bids received are in excess of two hundred thousand dollars, the city council may, by adoption of a resolution by a four-fifths vote, award the contract, at two hundred twelve thousand five hundred dollars or less, to the lowest responsive and responsible bidder, if it determines the cost estimate of the public agency was reasonable.

(Adopted by Ord. 875 on 11/16/2020)

Any purchase or contract made contrary to the provisions of this chapter shall be null and void.

(Ord. 703 § 1 (part), 1995.; Amended by Ord. 875 on 11/16/2020)