Item 284/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Omar Sandoval
Dept:
City Manager Dept: City Attorney
Date: 6/23/2026
Subject: Introduction and First Reading of an Ordinance amending provisions of Chapters 2.50 and 2.52 of the Municipal Code relating to purchasing and contracting procedures. (Action Item)
OBJECTIVE
For the City Council to conduct the first reading of and introduce an ordinance amending provisions of Chapters 2.50 and 2.52 of the Garden Grove Municipal Code relating to purchasing and contracting procedures to conform to changes in State law and best practices.
BACKGROUND
The City has adopted and follows the Uniform Public Construction Cost Accounting Act, Public Contracts Code 22000 et seq. (the Act). The Act establishes various thresholds for formal bidding and informal bidding of public works construction contracts. The Act is amended periodically to adjust the b idding thresholds in consideration of increases in the commodity prices over time. The prior threshold for force accounts was $60,000 and $200,000 for formal bidding. The attached ordinance revises the Municipal Code to increase public works contract bidding thresholds to conform to State law as amended by AB 2192 in 2025.
In addition, Federal purchasing guidelines have also increased thresholds, which are adjusted every five years. With the increases in both state and federal guidelines, staff is propo sing to also increase the bidding thresholds for goods and services consistent with the latest revisions to the federal guidelines.
DISCUSSION
The attached ordinance amends Sections 2.50.060 (Bidding) and 2.50.070 (Emergency Purchase Justification) to increase the formal bidding threshold for goods and services from $25,000 to $75,000. Upon adoption of the ordinance, staff will present to the City Council a revision of the City’s purchasing guidelines to further adjust the thresholds for the procurement process for purchases below $75,000, which were adopted by the City Council by resolution. These processes include simplified processes such as the requirement to obtain one or three informal quotes, purchase orders or simplified written agreements. The Item 284/2026
ordinance will further amend Section 2.50.080 to enable the use of procurement cards for the purchase of goods or services in addition to purchase orders.
In addition, the attached ordinance amends Sections 2.52.010 (Bid Procedures for Public Works Construction) of Chapter 2.52 of the Garden Grove Municipal Code pertaining to public works projects to fully implement the latest revisions to the bidding thresholds adopted pursuant to State law. The ordinance adjusts the formal and informal bidding limits for public construction projects. The informal bid procedures apply to projects estimated to cost up to $220,000 (increased from $200,000) and increases the thresholds for public projects allowed to be performed by the City with its own employees to $75,000 (increased from $60,000).
The proposed ordinance also authorizes administrative adjustments to the applicable bidding thresholds in the Garden Grove Municipal Code to maintain consistency with future revisions to the dollar limits established by Californi a Public Contract Code Section 22032. This amendment will ensure that the City's procurement procedures remain aligned with State law without requiring additional amendments to the Municipal Code each time the statutory thresholds are updated.
Once the ordinance becomes effective, staff will complete revisions of an updated purchasing manual to be used in the administration of contract and purchasing procedures for all City departments.
FINANCIAL IMPACT
None.
RECOMMENDATION
It is recommended that the City Council:
Introduce and conduct the first reading of the attached Ordinance amending provisions of Chapters 2.50 and 2.52 of the Garden Grove Municipal Code relating to purchasing and contracting procedures , and pass it to second reading.
ATTACHMENT(S)
1. Ordinance Amending Provisions of Chapters 2.50 and 2.52 of Title 2 of the Garden Grove Municipal Code Relating to Purchasing and Contracting Procedures