Item 370/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Patricia Song
Dept:
City Manager Dept: Finance
Date: 9/8/2026
Subject: Adoption of resolutions amending the City Manager’s contracting authority, revising bidding thresholds, and updating the City's Purchasing Policy and Procedural Manual. (Action Item)
OBJECTIVE
For the City Council to adopt resolutions amending the City Manager or designee’s contracting authority, revising the City’s formal and informal b idding and purchasing thresholds, and updating the City’s Purchasing Policy and Procedures Manual.
BACKGROUND
The Finance Department is responsible for administering the City’s procurement functions, including maintaining and updating the City of Garden Grove Purchasing Policy and Procedures Manual (the Manual). The Manual was last updated and adopted by the City Council in June 2020.
On August 11, 2026, the City Council adopted Ordinance No. 2979, amending Chapters 2.50 and 2.52 of the Municipal Code to align the City’s bidding requirements and thresholds with applicable federal and State law. Accordingly, the Manual must be updated to incorporate these changes and ensure consistency with the amended Municipal Code.
In addition, consistent with best practices and the revised bidding thresholds, staff recommends increasing the contracting authority of the City Manager, or designee, from $50,000 to $75,000. Updating the contracting authority will provide greater administrative efficiency while maintaining appropriate procurement controls and oversight.
DISCUSSION
Ordinance No. 2979 amended Sections 2.50.060 (Bidding) and 2.50.070 (Emergency Purchase Justification) of the Garden Grove Municipal Code to increase the formal bidding threshold for goods and services from $25,000 to $75,000 . To align the City’s purchasing procedures with these amendments, staff revised the Purchasing Policy and Procedures Item 370/2026
Manual to update the procurement requirements and thresholds for purchases below $75,000.
To promote administrative efficiency and incorporate best practices, staff conducted a survey of Orange County cities to compare purchasing thresholds and contracting aut hority delegated to City officials. The proposed thresholds are generally consistent with those of other Orange County cities and reflect current economic conditions, helping ensure that the City’s procurement thresholds remain relevant, practical, and cost-effective.
The proposed changes include:
Department Head Contracting Authority: Increase from $5,000 to $15,000; City Manager Contracting Authority: Increase from $50,000 to $75,000; Formal Bidding Threshold for Materials, Supplies, Equipment, Professi onal Services, and Other Contractual Services: Increase from $25,000 to $75,000; and Formal Bidding Threshold for Public Works and Construction: Increase from $200,000 to $220,000, consistent with the applicable statutory threshold.
The proposed changes are intended to streamline the City’s purchasing process, provide appropriate administrative flexibility, and maintain adequate procurement controls while ensuring compliance with applicable laws and regulations.
A summary of the proposed changes to the existing Purchasing Policy and Procedures Manual is provided below:
General Purchasing Requirement
Current Proposed
Purchase Order Required >$1,000 >$1,000 (unchanged)
Department Head Contracting Authority ≤$5,000 ≤$15,000
City Manager Contracting Authority ≤$50,000 ≤$75,000
Bid Threshold – Material, Supplies and Equipment Purchase One (1) Informal
Quote Required
Three (3) Informal
Quotes Required
Formal Bid Process
Required
Current ≤$5,000 $5,001 to $25,000 >$25,000
Proposed ≤$15,000 $15,001 to $75,000 >$75,000
Bid Threshold – Profession and Contractual Services
One (1) written
proposal
May waive contract
& insurance
One (1) written
proposal
Contract & insurance
required
Formal Bid Process
Required
Contract & Insurance
required
Current ≤$5,000 $5,001 to $25,000 >$25,000
Proposed ≤$15,000 $15,001 to $75,000 >$75,000
Item 370/2026
Bid Threshold – Public Works and Construction Projects
One (1)
written quote
May waive
contract &
insurance
Three (1) written
quotes with
prevailing wage
Contract &
insurance
required
Bonds required if
>$25,000
Informal Bid
Required
Contract &
Insurance
required
Bonds required
Formal Bid
Required
Contract &
Insurance
required
Bonds
required
Current ≤$10,000 $10,001 to
$60,000
$60,000 to
$200,000
>$200,000
Proposed ≤$15,000 $15,001 to
$75,000
$75,001 to
$220,000
>$220,000
FINANCIAL IMPACT
There is no financial impact to adopt the resolutions amending the City Manager or designee’s contracting authority, revising the City’s formal and informal bidding and purchasing thresholds, and updating the City’s Purchasing Policy and Procedures Manual.
RECOMMENDATION
It is recommended that the City Council:
Adopt a resolution increasing the City Manager’s, or designee’s, contracting authority from $50,000 to $75,000;
Adopt a resolution approving the revised formal and informal bidding and purchasing thresholds and the updated Purchasing Policy and Procedures Manual; and
Authorize the Finance Director, or designee, to make minor modifications to the Purchasing Policy and Procedures Manual as necessary to reflect best practices and ensure consistency with the City’s Municipal Code and applicable laws and regulations.
ATTACHMENT(S)
Resolution Authorizing the City Manager or Designee to Execute Certain Agreements Resolution Approving the 2026 Revised Purchasing Policy and Procedure Manual City of Garden Grove Purchasing and Policy and Procedure Manual - 2026