ORDINANCE NO. 2025-777
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORTUNA CALIFORNIA, AMENDING TITLE 2 – ADMINISTRATIVE AND PERSONNEL OF THE CITY OF FORTUNA MUNICIPAL CODE BY REVISING CHAPTER 2.50 –
PURCHASE OF SUPPLIES, EQUIPMENT, AND CONTRACTUAL SERVICES AND
DETERMINING THE ORDINANCE EXEMPT FROM CEQA
WHEREAS, the City of Fortuna (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and
WHEREAS, on November 17, 1997, the City Council passed and adopted Ordinance No. 97-611, which amended Title 2 of the Fortuna Municipal Code (“FMC”), to complete a comprehensive review of the City Code; and
WHEREAS, the City Council intends, by this Ordinance, to further amend certain provisions of Chapter 2.50 of the FMC to better align Chapter 2.50 with existing law as applicable to charter cities; and
WHEREAS, the City Council has considered the staff report, supporting documents, public testimony, and all appropriate information that has been submitted with this Ordinance.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FORTUNA DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The above recitals are each incorporated by reference and adopted as findings by the City Council.
SECTION 2. CEQA. The City Council finds, pursuant to the California Environment Quality Act (CEQA), Guidelines section 15378, that this Ordinance is not a Project as defined by CEQA.
Furthermore, the Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) as it is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.
SECTION 3. Fortuna Municipal Code Amendment. Section 2.50 - Purchase of supplies, equipment, and contractual services - of the Fortuna Municipal Code is amended as set forth in Exhibit A attached hereto and incorporated herein by this reference.
SECTION 4. Severability. If any provision of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such invalidity shall not affect the remaining provisions or application of the remaining provisions of this Ordinance, which can be given effect without the invalid provisions or application.
SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days after its adoption by the City Council. The Clerk shall cause this Ordinance to be published in the manner required by Government Code section 36933.
INTRODUCED AND FIRST READING PERFORMED on this 6th day of October 2025 by Mike Johnson, Mayor
the following vote:
AYES:
NAYS:
ABSENT: Council Member Conley, Council
Member Stevens
ABSTAIN: None
ATTEST:
___________________________
Millie Derby, Deputy City Clerk
SECOND READING PERFORMED AND ADOPTED on the 20th day of October 2025 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Mike Johnson, Mayor
ATTEST:
___________________________
Siana L. Emmons, City Clerk
‘Exhibit A’
Chapter 2.50
PURCHASE OF SUPPLIES, EQUIPMENTGOODS AND CONTRACTUAL SERVICES Sections:
2.50.010 Adoption of purchasing system.
2.50.015 Purchasing system – Power bestowed by city charter; definitions.
2.50.020 Purchasing agent.
2.50.030 Purchasing procedures for goods.
2.50.040 Formal bidding proceduresPublic works contracts.
2.50.050 Informal bid proceduresProfessional services.
2.50.060 Purchasing of servicesGeneral services.
2.50.070 Exceptions to bidding.
2.50.080 Unlawful purchases.
2.50.090 Public works projectsLabor Code compliance.
2.50.010 Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies, equipmentgoods and services, to obtain these items at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over all purchases, and to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. (Ord. 25-___ § __;Ord. 97-611 § 2; Ord. 81-455 § 1).
2.50.015 Purchasing system – Power bestowed by city charter; definitions.
A. The Charter of the city of Fortuna, Article IV, Section 400, Public Works, provides in part: “The City shall have the power to establish standards, procedures, rules or regulations to regulate all aspects of the bidding, award and performance of any public works contract, including, but not limited to, the compensation rates to be paid for the performance of such work.” In addition, Article IV, Section 401, Purchasing, provides: “The city shall have the power to establish standards, procedures, rules, or regulations related to the purchasing of goods, property, or services.” (Ord. 97-611 § 2).
B. Force Account Construction Work. As authorized by City Charter Section 400, Public Works, the city of Fortuna hereby exercises the right granted by the voters to establish force account limits for public works projects. No limit is established for work performed by city employees and the city has the right to complete part of a project with its own employees and bid part of a project, or bid the entire project.
C. Definitions. The following definitions apply to this chapter:
“General services” are services other than professional services or services provided under a public works contract, as defined below, including, but not limited to, services for maintenance of city property; repair of goods; information technology services including installation and maintenance; landscape maintenance; janitorial services; tree-trimming; street sweeping; power washing; and instructors or service providers for recreational programs.
“Goods” means supplies and equipment.
“Professional services” are services that involve the exercise of discretion and independent judgment based on specialized training and experience, including, but not limited to, services provided by accountants, actuaries, auditors, appraisers, architects, attorneys, construction managers, engineers, environmental advisors, financial advisors, information technology experts, expert instructors, land surveyors, landscape architects, and land use planners. “Public works contract” means an agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Ord. 25-___ § __; Ord. 2014-716 § 2; Ord. 2012-695 § 1; Ord. 97-611 § 2; Ord. 97-607 § 2).
2.50.020 Purchasing agent.
The city manager shall act as purchasing agent for the city. The city manager may delegate any of the powers and functions of the purchasing agent to any other officer or employee of the city. The purchasing agent shall have the authority and duty to:
A. Purchase or contract for supplies, equipmentgoods and contractual services required by any using city department or agency in accordance with purchasing procedures prescribed herein, such administrative regulations as the purchasing agent shall may adopt and such other rules and regulations as shall may be prescribed by the city council or city manager, at all times endeavoring to obtain as full and open competition as possible on all purchases;
B. Negotiate Oversee procurement, including negotiation when applicable, and recommend execution of contracts for the purchases of supplies, equipmentgoods and contractual services; C. Act to procure for the city the needed quality in supplies, equipmentof goods and contractual services at least expense to the city, subject to the terms of this chapter; D. Discourage uniform bidding and endeavor to obtain as full an open competition as possible on all purchasesRequire compliance with appliable laws and grant funding conditions; E. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
F. Prescribe and maintain such forms procurement and contract templates as reasonably necessary to conform to the requirements of this chapter and other rules laws and regulations; G. Supervise the inspection of all supplies, goods and contractual services and equipment purchased to ensure conformance with the applicable request, specifications, or scope; H. Administer the transfer of surplus property between departments as needed, or sell, or otherwise dispose of such surplus property;
I. Oversee the operation of all storerooms for the storage of common use items to ensure the safe keeping and proper storage and handling of all supplies and equipment therein; J. Maintain a bidder’s list for public works contracts, vendor’s catalogue file and other records used in modern procurement operations. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455 § 2).
2.50.030 Purchasing procedures for goods.
Except as otherwise provided in this chapter, all purchases and contracts for supplies, equipment and commoditiesgoods of any value shall be accomplished either by or through the purchasing agent.
Purchases shall be processed by one of the following:
A. Requisitions. Using City departments and agencies shall must submit requests for supplies and equipmentgoods to the purchasing agent by standard requisition forms.
B. Purchase Orders. Purchase of supplies and equipment shall be made only byA purchase order must be issued for each purchase of goods.
C. Encumbrance of Funds. Except in cases of emergency, as determined pursuant to FMC
2.50.0702.30.160, the purchasing agent shall may not issue any purchase order for supplies or equipmentgoods unless there is an appropriation in the fund account against which such purchase is to be charged.
D. Request for Quotes. For a purchase of goods that are valued over $5,000, an informal request for quotes may be submitted to three or more appropriate vendors from the vendors catalogue file or as otherwise approved by the purchasing agent. The request for quotes must include a general description of the goods, the required quantity, and any other applicable requirements, such as delivery instructions or time for delivery in order to ensure a fair comparison of pricing from separate vendors.
E. Authorization. Except as expressly authorized by the city council, the purchasing agent has authority to approve a purchase of goods up to $100,000. A purchase of goods above that amount must be authorized by the city council. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455 § 3).
2.50.040 Formal bidding proceduresPublic works contracts.
Public works contracts are subject to the applicable provisions of the Public Contract Code except as specified in this chapter, as authorized by the Charter of the city of Fortuna.
A. Bid Thresholds. Except as otherwise provided in this chapter, the bid thresholds established pursuant to the California Uniform Public Construction Cost Accounting Act (Public Contract Code section 22000 et seq.) (CUPCCAA) as set forth in Public Contract Code section 22032, as may be amended from time to time, will apply to determine the applicable bidding requirements as set forth below. Notwithstanding that the city has elected to index bid thresholds for public works contracts to the current thresholds approved under CUPCCAA, the city has not elected to be subject to CUPCCAA and none of the CUPCCAA requirements will be construed to apply to the city.
1. Public works contracts that are valued at or less than the amount set forth in Public Contract Code section 22023(a) may be procured by negotiated contract following an informal request for quotes from at least three qualified contractors, as practicable.
2. Public works contracts that are valued over the amount set forth in Public Contract Code section 22023(a), but not more than the amount set forth in Public Contract Code section 22023(b), are subject to the informal bid procedures set forth below.
3. Public works contracts that are valued over the amount set forth in Public Contract Code section 22032(c), are subject to the formal bid procedures set forth below. when the value of any purchases or contract for goods, supplies or equipment is $10,000 for a single item or bulk purchase of a single item, the purchase shall be by bid procedure. In all such cases a written contract must be executed. Written contracts shall mean either purchase order or formal contract, whichever is appropriate as determined by the purchasing agent. The purchasing agent has the authority to award bids up to $30,000. The bid procedure shall be as follows:
AB. Notice Inviting BidsFormal Bid Procedures.
1. Using the bid document forms approved by the purchasing agent, a nNotices inviting bids shall must be prepared to include the a general description of the articles to be purchasedproject, the required contractor license classification, shall state where bid blanks andinformation for obtaining the project plans and specifications may be secured, and the time and place for opening of bids, and any other requirements required by law, including Labor Code requirements.
The purchasing agent shall may solicit sealed bids from all responsible prospective suppliersqualified contractors by one or more of the following: (a) publishing the notice inviting bids in a newspaper of general circulation, (b) submitting the notice inviting bids for publication in local or regional construction trade journals, (c) posting the notice inviting bids on the city website, or (d) by transmitting the notice inviting bids to whose names arequalified contractors on the bidders’ list or who have requested their names to be added thereto, and any other source known to the purchasing agent. The notice inviting bids must be published, submitted, or transmitted at least 14 days before the bid opening date.
B2.. Bidders’ Security. When deemed necessary by the purchasing agent, bidders’ security may be prescribed in the public notices inviting bidsThe bid documents must require each bidder to submit with its bid, bid security equal to 10 percent of the bid amount and made payable to the city, in the form of a bidder’s bond, in a form approved by the purchasing agent, executed by an admitted surety; or a certified check or cashier’s check. Bidders shall be entitled to return to bid security provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within 10days after the notice of award of contract has been mailed unless the city is responsible for the delay. The city council or purchasing agent may, on refusal or failure of the successful bidder to execute the contract or to supply the required payment and performance bonds, award it to the next lowest responsible bidder. If the city council or purchasing agent awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low and the second lowest bid, and the surplus, if any, shall be returned to the surety if a bidder’s bond is used or to the lowest bidder if a check is used.
3. Unless the bid documents require electronic submission of bids, sealed bids must be submitted to the purchasing agent must be identified as bids on the envelope. Bids will be opened in public at the time and place stated in the public notice. A tabulation of all bids received will be opened for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. No bids will be accepted after the specified date and time for bid opening, which is subject to amendment only by addenda.
E4. Approval. The bids shall be submitted to the purchasing agent, who has the discretion to waive any immaterial irregularities as permitted under California law. The cCity council, or the purchasing agent, shallmay approve a contract or purchase order for with the lowest responsible bidder, or reject all bids.
F5. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, the city council or purchasing agent may accept one of them or accept the lowest bid made byfollowing negotiations with the tied bidders at the time of or after the bid opening.
C. Performance Bond. The city council and purchasing agent shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interest of the city. If the city council or purchasing agent requires a performance bond, the form and amount of the bond shall be described in the notice inviting bid.C. Informal Bid Procedures.
The informal bid procedures are identical to the formal bid procedures in this chapter except that the notice inviting bids may be issued 10 days before the bid opening date.
D. Request for Quotes. For public works contracts that are valued below the threshold for informal bid procedures, as authorized by the purchasing agent, an informal request for quotes may be issued via email to three or more qualified contractors, including, but not limited to, contractors on the bidders list.
The request for quotes must include a general description of the project, the required contractor license classification, information for obtaining the project plans and specifications (if applicable), and any other requirements required by law, including Labor Code requirements if applicable. Alternatively, the purchasing agent may authorize direct negotiations with a qualified contractor on the bidders list.
E. Payment and Performance Bonds. For any public works contract valued over $25,000, before commencing any work, the contractor must provide a payment bond in conformance with Civil Code section 9554, as may be amended from time to time, and a performance bond guaranteeing completion of the work under the terms of the contract, each provided for 100 percent of the total amount payable under the contract, and each issued by an admitted surety on bond forms provided by or acceptable to the purchasing agent.
F. Authorization. Except as expressly authorized by the city council, the purchasing agent has authority to approve a public works contract up to $100,000. Any public works contract above that amount must be authorized by the city council. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455§ 4).
D. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be opened for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. No bids shall be accepted after the stated time specified in the notice inviting bids.
E. Approval. The bids shall be submitted to the purchasing agent. City council, or the purchasing agent, shall approve a contract or purchase order for the lowest responsible bidder, or reject all bids.
F. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, the city council or purchasing agent may accept one of them or accept the lowest bid made by negotiations with the tie bidders at the time of or after the bid opening. (Ord. 97-611 § 2; Ord. 81-455§ 4).
2.50.050 Informal bid proceduresProfessional services.
A. Architectural and Engineering Services. Pursuant to Government Code section 4529.10 et seq., all contracts for architectural, landscape architectural, environmental, engineering, land surveying, and construction project management services will be procured pursuant to a fair, competitive selection process which prohibits city employees from participating in the selection process when they have a financial or business relationship with any private entity seeking the contract, and the procedure must require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities.
A request for proposals, which may include a request for qualifications, must be used for those professional services subject to Government Code section 4529.10 et seq. While cost may be considered as a factor, the basis for award may include other considerations as well, including relevant qualifications and experience. Award must be based on the factors stated in the request for proposals. Notwithstanding the foregoing, if such services are funded in whole or in part by grant funding that requires specific procurement requirements such as qualifications-based selection, procurement and award must comport with the applicable grant funding requirements.
B. Other Professional Services. For all other professional services, for agreements valued up to $75,000_______, the purchasing agent may directly negotiate the terms of the agreement with a service provider deemed to provide the best value for the city, based on the service provider's qualifications, experience, references or performance history, and cost. For agreements valued over $75,000, the professional services must be procured pursuant to a request for proposals that includes a request for qualifications. Cost may be considered as a factor, but the basis for award may include other considerations as well, including relevant qualifications and experience. Award must be based on the factors stated in the request for proposals.In cases where the value of supplies, equipment or contractual services is less than $10,000, the purchasing agent shall purchase the item or items by informal bidding, negotiations, or annual purchase agreement. Informal bidding means solicitation by the purchasing agent of at least three price quotations, either written or verbal, of which the bid yielding the lowest ultimate cost shall be accepted. The lowest ultimate cost shall mean the lowest informal bid price commensurate with the quality needed and shall include consideration of anticipated operating costs, transportation or packing charges, availability, storage costs, and supplier responsibility when such factors are relevant.
C. Authorization. Except as expressly authorized by the city council, the purchasing agent has authority to approve a contract for professional services up to $100,000. Any contract for professional services above that amount must be authorized by the city council. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455 § 5).
2.50.060 Purchasing ofGeneral services.
When the city council or city manager authorize the hiring of general services for which standard specifications cannot be drawn due to the nature of the service or because of national association bylaws or professional policies prohibiting competitive bidding, such as, but not limited to, architectural services, consultant services, legal services, and engineeringmaintenance; janitorial; landscape maintenance; technology installation, maintenance, or repair; or recreational instructional services, the city manager shall may negotiate with qualified providers for the authorized service when the value of the contract does not exceed $75,000. For general services contracts over $75,000, an informal request for proposals must be issued to solicit proposalsProposals shall be submitted whenever practicable from at least three firmsqualified service providers, whenever practicable. When the service lends itself to written standard specifications, then bidding for this service shall be conducted pursuant to FMC 2.50.040. When the value of any agreement for general services is greater than $10,000100,000, the contract or purchase order shall may not be executed unless it is approved by the city council. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455§ 6).
2.50.070 Exceptions to bidding.
Purchases of supplies, equipment goods and contractual services shall be bysubject to formal or informal bid procedures pursuant to this chapter exceptmay be exempted from bid procedures under the following circumstances:
A. In case of an emergency as determined by the city manager or, in his or her absence, the acting city manager, pursuant to FMC 2.30.160. The city manager shall be advised of such emergency purchase as soon as practicable;
B. When the supplies, equipmentgoods or contractual services can be obtained from only one vendor or provider;
C. When the city has entered or may enter into a contract with another governmental unit entity to purchase a particular item on a cooperative basis;
D. When the city council finds that direct negotiations with a qualified vendor or provider shall will best serve the city due to the nature of the supplies, equipmentgoods or contractual services.
E. When alternative procurement methodology, including, but not limited to, design-build, progressive design-build, or construction-manager-at-risk has been authorized by the city council for a public works contract. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455 § 7).
2.50.080 Unlawful purchases.
No purchase or contract for any supplies, materials, equipmentgoods or contractual services shall may be made contrary to the provisions of this chapter. No contract or purchase shall may be subdivided or split to avoid any of the provisions of this chapter. All purchases for goods or services much be memorialized in a writing by a written agreement in a form approved by the city attorney, or by purchase order as authorized by the purchasing agent. (Ord. 25-___ § __; Ord. 97-611 § 2; Ord. 81-455 § 8).
2.50.090 Public works projectsLabor Code compliance.
A. Prevailing Wages. Contracts Pursuant to Labor Code section 1782, contracts for city-funded public works construction projects valued in excess of $25,000, and contracts for city-funded alteration, demolition, repair or maintenance projects valued in excess of $15,000, shall requireare subject to payment of prevailing wages in accordance withand compliance with all applicable the requirements of Article 2 of Chapter 1, of Part 7, of Division 2 of the California Labor Code beginning at section 1770, as may be amended from time to time, including, but not limited to, requirements for contractor and subcontractor registration with the Department of Industrial Relations (DIR) pursuant to Labor Code section 1771.1; notice of award to the DIR pursuant to Labor Code section 1773.3; and DIR payroll submission requirements pursuant to Labor Code section 1771.4. (Ord. 25-___ § __; Ord. 2014-716 § 2; Ord. 2012-695 § 1; Ord. 97-611 § 2; Ord. 97-607 § 2).
B. Force Account Construction Work. As authorized by City Charter Section 400, Public Works, the city of Fortuna hereby exercises the right granted by the voters to establish force account limits for public works projects. No limit is established and the city has the right to complete part of a project and bid part of a project, or bid the entire project. (Ord. 2014-716 § 2; Ord. 2012-695 § 1; Ord. 97-611 § 2; Ord. 97-607 § 2).