August 19, 2025, Item #6
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PO RT City of Poway
August 19, 2025
Honorable Mayor and Members of the City Council
Craig Schmollinger, Director of Finance@
Craig Schmollinger, Director of Finance
[email protected]
CITY COUNCIL
Ordinance to Amend Poway Municipal Code Chapter 3.28 Regarding the Award and Execution of Contracts
The City has codified its Purchasing standards for supplies, equipment, materials and services in Chapter 3.28 of the Poway Municipal Code (PMC) titled "Purchasing". From time to time the Purchasing section has been updated to reflect changes in procedures, updates to the California Public Contract Code (PCC), purchasing authority levels, and to help streamline operations while ensuring adequate fiscal controls are in place. One of these changes occurred when the City elected to become subject to California Uniform Public Construction Cost Accounting Act (CUPCCM) procedures and bidding standards through an adopting resolution approved on February 1, 2022. CUPCCM provides greater flexibility and efficiency in the award and execution of public works projects and has standards which align with certain PCC sections. As time has passed, there have been updates to the PCC that have caused an imbalance between certain City PMC authority levels and California State PCC authority levels. Staff recommends the City Council introduce the Ordinance (Attachment A) to better align and index these areas into the future, along with alignment of City Manager authorized level for awarding contracts with adopted City budget authority for appropriation adjustments. The Ordinance amends four sections of Chapter 3.28 of the PMC, and adds one new subsection : 3.28.050 (Unauthorized Purchases), 3.28.070 (Formal Bidding Procedure), amending subsection 3.28.080.H and adding subsection 3.28.080.1 (Exceptions to Bidding Requirements), 3.28.100 (Professional Services), and
3.28.120 (Award and Execution of Contracts).
Recommended Action:
It is recommended the City Council introduce the Ordinance for first reading by title only, waive further reading, and schedule the adoption of the Ordinance for the September 16, 2025 Regular City Council Meeting.
Discussion:
Chapter 3.28.050 {amending): Unauthorized Purchases:
Current authority allows the Director of Finance to approve other city staff ordering the purchase of 1 of 8
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supplies, equipment, materials or services or make any contract by written approval. The proposed ordinance would update this requirement from solely being written to also include electronic approval. This approval could come by email, City software electronic approval, or other electronic mechanism.
Chapter 3.28.070 {amending): Formal Bidding Requirements:
The CUPCCAA was enacted in 1983 to promote uniformity on bidding procedures and accounting standards for public works projects performed by contract or by staff. CUPCCAA provides greater flexibility and efficiency in the award and execution of public works projects. The City elected to become subject to CUPCCAA procedures and bidding standards through an adopting resolution at the February 1, 2022 City Council meeting. Over time, the PCC has been updated which resulted in an imbalance between the City PMC and those state standards for formal bidding requirements. This imbalance is being addressed through a proposed dollar amount adjustment for formal bidding being increased to $100,000 and indexing to the relevant PCC Section 22032(a) related to bidding requirements, whichever is greater. This will help ensure ongoing alignment without a need to update the PMC if there are changes at the State level.
A proposed update to bid notice posting language is also being proposed to align with a more modern method of posting on the City's website versus in the newspaper. Additionally, two other posting locations for advertising of bids are included as the City bulleting board located outside City Hall and on the public bulletin board located at the Poway Branch Library. These updates help ensure there is common knowledge of posting locations and reach a wider array of potential bidders. This will help increase awareness and opportunity for additional bidders, increasing the opportunity for a reduction in cost for services, equipment, and supplies in the process.
Chapter 3.28.080.H {amending): Exceptions to bidding requirements:
This subsection currently includes an exception to obtaining formal or informal bids for purchases of supplies, services or equipment that does not exceed $10,000. Given the increase in costs of supplies, services and equipment over the past several years, this limitation is proposed to increase to $20,000.
This revision will help expedite the purchase of smaller dollar supplies, services and equipment leading to staff efficiencies and more time to focus on other City work.
Chapter 3.28.080.I {new subsection): Exceptions to bidding requirements - Full Reimbursement:
A new section of the PMC is being proposed to specify the City will continue to be fully reimbursed by a third party for the costs of supplies, services or equipment. While this will not change the City's current long-standing processes, the proposed clarification codifies the City's practice of ensuring development projects are paid for solely by the applicants of those projects.
Chapter 3.28.100 {amending): Professional Services:
Professional services include those contracted for architectural, professional engineering, land surveying, construction management, and similar services which are awarded based on qualification based criteria versus solely on the lowest cost. This section of the PMC requires obtaining multiple bids for these services unless only one firm or individual can provide the service, in which case receiving multiple proposals would be impossible and therefore is exempt from this requirement.
Included in the proposed PMC revision is an additional exemption from receiving multiple proposals for services tied to projects the City is being fully reimbursed by a third party (applicant). This clarification does not apply to professional services funded with City funds. 2 of8
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Chapter 3.28.120 (amending}: Award and Execution of Contracts:
The City Budget provides the City Manager with certain authorities to help provide for expeditiously meeting the requirements of the city in running day-to-day operations. These budget authorities include for the City Manager to approve appropriation increases at $100,000 per instance, while the PMC allows for the City Manager to award and execute contracts up to $60,000. This imbalance is being addressed through a proposed dollar amount adjustment to the City Managers authority to award contracts to $100,000. The increased contract limits are provided to be consistent with the informal bid procedures outlined by CUPCCAA and provided in Section 3.28.150 of the PMC.
Environmental Review:
None.
Fiscal Impact:
There is no direct fiscal impact associated with the recommended action. Staff anticipated the City realizing some savings by avoiding newspaper posting costs for bid opportunities and publishing on the City website. Productivity savings are anticipated from spending less time bringing smaller dollar contracts to City Council for award which will allow staff more time to focus on other projects for the City.
Public Notification:
None.
Attachments:
A. Ordinance Amending Chapter 3.28 of the Poway Municipal Code Reviewed/Approved By:
Wendy Kaserman
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Chris Hazeltine
City Manager
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, AMENDING CHAPTER 3.28 OF THE
POWAY MUNICIPAL CODE REGULATING THE CITY'S FORMAL
BIDDING PROCEDURE, AND AWARD AND EXECUTION OF
PURCHASING CONTRACTS
WHEREAS, City staff and the City Attorney's Office have been progressively analyzing the Poway Municipal Code ("PMC") and recommending updates where appropriate; WHEREAS, the City Council of the City of Poway has enacted a purchasing system in Chapter 3.28 of the PMC to establish efficient procedures for the purchase of supplies, equipment, materials or services; to secure the same for the City at the lowest possible cost commensurate with the quality needed; to exercise positive financial control over purchases; and to ensure that purchases are consistent with the City's adopted budget; WHEREAS, the City Council seeks to increase the minimum purchase value which triggers the City's formal bidding procedure and requires contracts be awarded by the City Council so as to reflect modern costs and provisions of state law; WHEREAS, the City Council seeks to formalize the City's process for posting formal bid notices by specifying those places in the City where such bids shall be posted; and WHEREAS, the City Council seeks to allow the City to enter into contracts for supplies, services or equipment that are being fully reimbursed by third parties without requiring a formal bidding process.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS:
SECTION 1: The above recitations are true and correct.
SECTION 2: Section 3.28.050 of the PMC is hereby amended as follows, with additions in underline, and deletions in strikethrough:
3.28.050 Unauthorized purchases
No City department head, division head or other employee shall make or order the purchase of any supplies, equipment, materials or services or make any contract without the prior approval, in writing or electronically, of the Director of Finance.
SECTION 3: Section 3.28.070 of the PMC is hereby amended as follows, with additions in underline, and deletions in strikethrough:
3.28.070 Formal bidding procedure.
Except as otherwise provided in this chapter, any purchase for supplies, services, or equipment for contracts on public works projects which exceeds in value $1Qe0,000 or the amount established by Public Contract Code Section 22032(a), whichever is greater, in value for supplies, services, and equipment, or the amount
ATTACHMENT A
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Ordinance No.
established by Public Contracts Code Section 22032 and succeeding amendments for contracts on public •.vorks projects, will shall be by formal bid. The requirements of this section apply only to formal bids, and not to requests for proposal (RFPs) issued by the City.
A. Notices inviting sealed bids shall be published at least twice, not less than five days apart, the first time being 10 days before the date of the opening of the bids, in a ne•.vspaper of general circulation in the City, or they shall be posted in at least three places in the City that have been designated by ordinance as the places for posting public notices~.,. (1) on the City bulletin board located outside City Hall; (2) on the public bulletin board located at the Poway Branch Library; and (3) online on the City's website.
B. Notices inviting bids shall include a general description of the articles to be purchased, where bid forms and specifications may be obtained, and the time, date and place for the opening of bids.
C. When deemed necessary by the Director of Finance, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon the bidder's refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all bids presented, due to the failure of the successful bidder to execute the contract, and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and the surplus, if any, shall be returned to the lowest bidder.
D. Sealed bids together with bidder's security shall be submitted to the Director of Finance or designee. The bid shall be so identified on the envelope. Bids shall be opened in public at the date, time and place stated in the public notices inviting the bids. Any bid received after the scheduled time of the bid opening shall be returned to the bidder unopened. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.
E. At its sole discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure prescribed above. In the event no bids are received or all bids are rejected, the City Council may, in accordance with Public Contracts Code Section 20167, and any amendments thereto, direct the Director of Finance or designee to proceed pursuant to paragraphs relating to open market procedure or competitive negotiations.
F. If two or more bids received are for the same total amount or unit price, quality and service being equal, the City Council may at its discretion accept the bid it chooses with or without further negotiations with the tie bidders.
G. The City shall have authority to require performance and labor and materials security before entering a contract in such amount as it finds reasonably necessary 5 of 8
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Ordinance No.
to protect the best interests of the City. If the City requires security, the form and the amount of the security shall be described in the notice inviting bids. The notice inviting bids may provide that security may be posted in the form of a surety bond, a letter of credit drawn on an institution located in San Diego County and approved by the City Attorney, or a cash deposit.
SECTION 4: 3.28.080 of the PMC is hereby amended to add a new subdivision (I), to read as follows:
I. The City will be fully reimbursed by a third party for the costs of supplies, services or equipment.
SECTION 5: 3.28.080 of the PMC is hereby amended as follows, with additions in underline, and deletions in strikethrough:
H. The value of the supplies, services or equipment to be purchased does not exceed $420,000.
SECTION 6: 3.28.100 of the PMC is hereby amended as follows, with additions in underline, and deletions in strikethrough:
3.28.100 Professional services.
The selection of a firm for professional services will be made by qualification-based selection . In order to implement this method of selection when contracting for architectural, professional engineering, land surveying, construction management and other professional services, the City must be sure that selection is made on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices. Whenever possible, at least three proposals shall be required for the professional services needed. The requirement for multiple proposals may be waived if only one firm or individual can provide the service, or if the City is being fully reimbursed by a third party, in which case this Section does not apply. It is the policy of the City to give prime consideration to consultants and other professionals whose offices are located within the City of Poway, but the final selection shall still be made based on demonstrated competence and professional qualifications first and agreed-upon financial agreement second.
SECTION 7: Section 3.28.120 of the PMC is hereby amended as follows, with additions in underline, and deletions in strikethrough:
3.28.120. Award and execution of contracts.
Except in emergency situations or where the City is being fully reimbursed by a third party, all contracts for supplies, services and equipment and all public works projects shall be awarded by the City Council if they meet or exceed the greater of the following in aB-estimated amount ef $1Qe0,000 or more.L or the amount established by Public Contract Code Section 22032(a). and public works projects in an estimated amount of $60,000 or more shall be awarded by the City Council. Contracts for supplies, services, 6 of 8
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equipment and public projects pursuant to the processes set forth in PMC 3.28.150 in an amount less than $1.Q@0,000, or the amount established by Public Contracts Code Section 22032(a), whichever is greater, shall be executed by the City Manager or the City Manager's designee. No contract shall be approved by the City Council or City Manager unless the expenditure is consistent with the City's adopted budget.
SECTION 8: The City Council finds that this Ordinance is not a "project" pursuant to the California Environmental Quality Act ("CEQA").
SECTION 9: If any provisions of this Ordinance or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provisions or application, and to this end the provisions of this act are severable.
SECTION 10: This Ordinance shall be codified.
EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after its adoption.
CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Councilmembers voting for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen ( 15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933.
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Ordinance No.
INTRODUCED AND FIRST READ at a Regular Meeting of the City Council of the City of Poway, California, held the 19th day of August, 2025, and thereafter.
PASSED AND ADOPTED at a Regular Meeting of said City Council held the 16th day of September, 2025, by the following vote, to wit:
AYES:
NOES:
ABSTAINED:
ABSENT:
DISQUALIFIED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
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