STUDY SESSION City Council
August 11, 2026
TO: Mayor and City Council
FROM: Jeff Boynton, City Manager
ORIGINATED BY: Anne Haraksin, Assistant City Manager
Melissa Pascual, Finance Manager
SUBJECT: PURCHASING LIMITS FOR NON-PUBLIC PROJECTS AND
PUBLIC PROJECTS
BACKGROUND
On October 27, 1987, the City Council adopted Ordinance No. 407, which amended Chapter 3.14 of the La Mirada Municipal Code. The Ordinance provided that the various purchasing limits for Department Directors, Purchasing Officer (City Manager), and City Council be established by resolution, thereby allowing for periodic adjustments.
Additionally. California Public Works Contract Code Section 20162 calls for formal bidding for Public Works projects in excess of $5,000.
FINDINGS
The purchasing limits for non-public projects including supplies, equipment, and contract services were updated in November 2003 by Resolution No. 03-67 and in May 2014 by Resolution No. 14-10. The purchasing limits for non-public projects pursuant to Resolution No. 14-10 are as follows:
Authority Non-Public Projects Current Proposed
Department Head Open Market $0-$2,500 $0-$3,500
Purchasing Officer Informal Bidding $2,501-$25,000 $3,501-$35,000 City Council Formal Bidding $25,001 and greater $35,001 and greater To keep pace with rising costs, it is recommended the purchasing limits be adjusted for non-public projects. The proposed limits are based on the Los Angeles-Long BeachAnaheim Consumer Price Index (CPI) for the May period, annually, since 2014. The total CPI change since May 2014 is approximately 46 percent. It is recommended that the open market and informal bidding be increased to $3,500 and $35,000, respectively.
It is recommended that the limit for formal bidding be increased to $35,001 and greater.
On March 28, 2017, Ordinance No. 692 was adopted revising the purchasing procedures for public projects, adopting emergency procurement procedures, and amending Title 3 of the Municipal Code, as required by the Uniform Public Construction Review of Purchasing Limits
Study Session Meeting of August 11, 2026
2 Cost Accounting Act (UPCCAA). On February 26, 2019, Resolution No. 19-06 was adopted to codify purchasing procedures for public projects and establish the public project limits for informal bids and open market public projects.
The purchasing limits for public projects, such as street rehabilitation projects, pursuant to Resolution No. 19-06 are as follows:
Assembly Bill 2192 (AB 2192), which became effective on January 1, 2025, increased the bid limit threshold for public projects subject to the UPCCAA. Based on the new limits, it is recommended the following limits be adjusted:
• Open Market: Projects costing $75,000 or less to be performed by employees of a public agency by force account, by negotiated contract, or by purchase order.
• Informal Bidding: The informal bid limit would be for projects costing up to $220,000. If all bids received are in excess of $220,000, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract, at $235,000 or less, to the lowest responsible bidder, if it is determined the City’s cost estimate was reasonable.
• Formal Bidding: Projects costing more than $220,000 would be subject to the formal bidding process.
The proposed limits are intended to expedite public projects and reduce bid processing costs.
RECOMMENDED ACTION
It is recommended the City Council review and discuss the purchasing limits for nonpublic projects and public projects.