STAFF REPORT
Meeting Date:
October 14, 2025
CONSENT
15 SUBJECT: FIRST READING OF AN ORDINANCE AMENDING CHAPTER 2.30 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING THE CITY’S PURCHASING SYSTEM; AND APPROVAL OF UPDATED PURCHASING POLICY
(ADMINISTRATIVE POLICY #I-9) AND RESOLUTION ELECTING TO BECOME
SUBJECT TO THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT
RECOMMENDATION: It is recommended that the City Council:
1. Adopt the Ordinance titled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, AMENDING CHAPTER 2.30 OF THE LAGUNA BEACH
MUNICIPAL CODE REGARDING THE CITY OF LAGUNA BEACH PURCHASING SYSTEM
AND FINDING THE ORDINANCE IS NOT A PROJECT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”;
2. Set said Ordinance for second reading at the regular City Council meeting of October 28, 2025;
3. Approve the City’s updated Purchasing Policy, Administrative Policy #I-9;
4. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ELECTING TO BECOME SUBJECT TO THE UNIFORM
PUBLIC CONSTRUCTION COST ACCOUNTING ACT AND FINDING THE SAME NOT A PROJECT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”; and
5. Find that the recommended action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.
SUMMARY OF THE MATTER
The City has both a Purchasing Policy (last updated in 2020 and referred to herein as ”Policy”) and a Purchasing System Ordinance (”Purchasing System Ordinance”). The latter is codified within the Municipal Code (LBMC Chapter 2.30).
The Policy established guidelines surrounding the purchase and procurement of supplies, services, and equipment on behalf of the City, and is intended to be consistent with the Purchasing System Ordinance.
Today, staff is recommending the City Council approve:
• Introduction of an ordinance amending Chapter 2.30 of the Municipal Code (Attachment 1); • The revised Purchasing Policy (Attachment 2); and
• A related resolution about the California Uniform Public Construction Cost Accounting Act (CUPCCAA) (Attachment 3).
FIRST READING OF AN ORDINANCE AMENDING CHAPTER 2.30 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING THE CITY’S PURCHASING SYSTEM; AND APPROVAL OF UPDATED PURCHASING POLICY (ADMINISTRATIVE POLICY #I-9) AND RESOLUTION
ELECTING TO BECOME SUBJECT TO THE UNIFORM PUBLIC CONSTRUCTION COST
ACCOUNTING ACT
October 14, 2025
The proposed changes to these documents were discussed with the public and the City Council during a scintillating study session held on September 23, 2025.
DISCUSSION
The City staff, led by the City Attorney, the City Manager, and the Finance Director, has had a goal to update and revise the City’s Policy and the City’s Purchasing System Ordinance to modernize the City’s purchasing practices. Modernization includes moving from relatively archaic informal processes to what we believe are best practices.
Among the more significant revisions to the Policy and the Purchasing System Ordinance are the strengthening of the City’s cooperative purchasing and sole source procurement standards, the adoption of CUPCCAA procurement standards for public works projects and further clarifying exceptions to the standard competitive bidding processes. The Policy and the Purchasing System Ordinance also increase the purchasing threshold and signing authority limits to reflect changes in the present operating environment such as inflation and the need to balance administrative overhead while ensuring efficient and transparent use of the public dollar.
Input from the Study Session held on September 23, 2025, as well as other discussions, have led staff to recommend further modifications to the Policy and the Purchasing System Ordinance:
• Increased the City Manager’s authority to award sole source contracts to $100,000 – from $75,000. This was done to ensure consistency with the proposed $100,000 signing authority for the City Manager. • Increased City Manager’s signing authority for reimbursable services (CEQA for private development projects, wireless application review, etc.) to $200,000. This was done to ensure that these costs that are entirely reimbursable by third parties do not impeded applications in the City while working through the procurement process.
• A prohibition on any City employee participating in the awarding of a contract if they have a personal relationship (as defined) with the other party.
• Require contract for any purchase over $10,000 and flexibility for contracts in excess of 5 years. • Miscellaneous clean-ups that further the goals of clarifying, modernizing, and streamlining the City’s Purchasing System Ordinance and Policy.
Altogether, these updates will support the delivery of efficient, cost-effective, and high-quality municipal services. The proposed Policy and amended Purchasing System Ordinance will support the following principles:
• Competitive Process. The City seeks to promote full and open competition among potential vendors and service providers. Through full and open competition, the City is able to realize better pricing and more favorable terms.
FIRST READING OF AN ORDINANCE AMENDING CHAPTER 2.30 OF THE LAGUNA BEACH MUNICIPAL CODE REGARDING THE CITY’S PURCHASING SYSTEM; AND APPROVAL OF UPDATED PURCHASING POLICY (ADMINISTRATIVE POLICY #I-9) AND RESOLUTION
ELECTING TO BECOME SUBJECT TO THE UNIFORM PUBLIC CONSTRUCTION COST
ACCOUNTING ACT
October 14, 2025
• Best Overall Value. The City seeks the best value for its money when making purchases. When not required by law to select the lowest bidder, this principle permits the City to consider factors other than just price in determining what constitutes the best value to the City. • Fairness and Transparency. The City seeks to promote fairness and transparency in the City’s purchasing system. Fostering equal opportunities for vendors wishing to do business with the City and ensure that public expenditures are made in an open and consistent manner. • Compliance with Law and Best Practice. The City follows applicable laws and regulations and promotes best practices. Purchases are conducted in accordance with the City’s legal and ethical obligations and responsibilities.
Staff will review (and update, as appropriate) the Policy every few years to ensure it continues to reflect the City’s goals, priorities and operating environment.
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.
ATTACHMENTS
1. Ordinance to Amend Municipal Code Chapter 2.30 (Pgs. 4-14)
2. Purchasing Policy (Administrative Policy #1-9) (Pgs. 15-31)
3. Resolution (Pgs. 32-34)
Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Michelle Bannigan, Finance Director, Finance Patrick Donegan, Assistant City Attorney