September 16, 2025, Item #3DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PQ RT City of Poway September 16, 2025 Honorable Mayor and Members of the City Council Carrie Gallagher, City Clerk Carrie Gallagher, City Clerk (858) 668-4435 or [email protected] CITY COUNCIL Second Reading and Adoption of Ordinance No. 876 entitled "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" The introduction and first reading of the above-entitled Ordinance was-approved at a Regular City Council Meeting on August 19, 2025. There were no speakers. The Ordinance is now presented for second reading and adoption by title only. Vote at first reading: Recommended Action: AYES: NOES: BLAIN, MAEDA, PIKUS, DE HOFF, VAUS NONE ABSTAINED: NONE ABSENT: NONE DISQUALIFIED: NONE It is recommended the City Council adopt Ordinance No. 876. Environmental Review: None. Fiscal Impact: None. 1 of7
September 16, 2025, Item #3Public Notification: An ordinance summary notice was published in the Poway News Chieftain on Thursday, August 28, 2025. A certified copy of this Ordinance will also be posted in the Office of the City Clerk in accordance with Government Code section 36933. Attachments: A. Ordinance No. 876 Reviewed/Approved By: Assistant City Manager 2 of7 Reviewed By: Alan Fenstermacher City Attorney Approved By: Chr~~ City Manager
September 16, 2025, Item #3ATTACHMENT AORDINANCE NO. 876 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING CHAPTER 3.28 OF THE POWAY MUNICIPAL CODE REGULA TING 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 of7 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 $.1.Qe0,000 or the amount established by Public Contract Code Section 22032(a), whichever is greater, in value for supplies, services, and equipment, or the amount
September 16, 2025, Item #34 of7 Ordinance No.876 Page 4 established by Public Contracts Code Section 22032 and succeeding amendments for contracts on public works 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 newspaper 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.
September 16, 2025, Item #3Ordinance No.876 Page 5 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 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: 5 of 7 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 a-A-estimated amount ef $.1.Qe0,000 or moreJ. or the amount established by Public Contract Code Section 22032(a). and public 11✓orks projects in an estimated amount of $60,000 or
September 16, 2025, Item #3Ordinance No.876 more shall be awarded by the City Council. Contracts for supplies, services, equipment and public projects pursuant to the processes set forth in PMC 3.28.150 in an amount less than $1Qe0,000, 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. Page 6 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. 6 of 7 II II II II II II II II II II II
September 16, 2025, Item #3Ordinance No.876 Page 7 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 7 of7