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RiversideCA.govPURCHASING RESOLUTION AMENDMENTSCity CouncilSeptember 1, 2026FINANCE DEPARTMENT RiversideCA.gov2
A centralized purchasing system establishes procurement rules, approval authority, and accountability across City operations.Centralized Purchasing AuthorityCity Charter §1105 and Riverside Municipal Code Chapter 3.16 establish the City’s centralized purchasing system.The Purchasing Resolution governs Goods, Services, Professional Services, Construction, competitive requirements, exceptions, and contract administration.City Manager AuthorityCharter §601 and Municipal Code Chapter 3.16 authorize the City Manager to recommend procurement rules and regulations.Charter §419 authorizes the City Manager to bind the City to contracts, subject to delegated authority and applicable requirements.Delegated Signature AuthorityCity Council delegates signature authority to the City Manager, with further delegation to Department Heads.Delegation is a core component of the City’s procurement framework and supports timely administrative approvals.Key Authority Milestones2005Resolution No. 20943Established a uniform $50,000 threshold to improve consistency across City departments and Riverside Public Utilities.2024Resolution No. 24101Increased delegated authority for Goods, Services, and Professional Services from $50,000 to $100,000 and expanded Local Vendor Preference.1Background: Riverside’s Procurement Governance Framework1 2 8/20/2026
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Operational reform and updated federal thresholds provide the basis for modernizing Purchasing Resolution No. 24101Background: Procurement Transformation & Threshold Alignment2024-2026 Procurement Reform InitiativeHarvard Kennedy School Government Performance Lab/Partners for Public Good100+ 400+ 21City Staff Interviewed Vendors Surveyed Procurement Reforms ImplementedThree areas of focus for improvement:•Cohesive processes to reduce duplicated effort and delays•Clearer roles, responsibilities, and decision-making authority•Improved vendor access and outreachFederal Threshold Update2 CFR Part 200 – Uniform GuidanceEffective October 1, 2025Micro-Purchase Threshold $10,000 $15,000Simplified Acquisition Threshold $250,000 $350,000Proposed amendments align City thresholds and delegated authority, clarify requirements, and incorporate lessons from procurement reform.Policy Objective:Apply procurement and approval requirements proportionately to transaction value, risk, complexity, and public significance while maintaining competition, accountability, and oversight.
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Procurement Threshold AlternativesThree Council options maintain competitive procurement while providing different levels of operational flexibility.Option 3Current – No ChangeOption 2RecommendedOption 1Procurement Type$0–$10,000$0–$15,000$0–$15,000One Quote$10,000.01–$50,000$15,000.01–$220,000 Non-Federal$15,000.01–$350,000 Federal$15,000.01–$350,000InformalOver $50,000Over $220,000 Non-FederalOver $350,000 FederalOver $350,000FormalOver $50,000No ChangeNo ChangeCharter §1109 ConstructionOption 1 creates one Citywide procurement framework aligned with current federal thresholds; Option 2 retains separate thresholds by funding source.3 4 8/20/2026
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Operational Impact of Procurement Threshold OptionsAnalysis of 8,352 procurement actions from FY 2023–24 through FY 2025–26.13975016690250500750100012501500Current Option 1 Option 2Formal ProcurementsOption 1• 896 fewer formal procurements• $993M remains in formal procurement spendOption 2• 728 fewer formal procurements• $1.039B remains in formal procurement spendCompetition & Controls Remain• Informal procurements remain competitively solicited.• Purchasing oversight and documentation requirements continue.
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City Manager Approval AuthorityDelegated approval authority is a separate policy decision from procurement competition requirements.Council ReviewRetainedActionsRemovedCouncil ActionsRemainingApproval AuthorityOption87.4%358266$350,000 or less1 94.0%218406$220,000 or less2 —Recommended100%0624$100,000 or less3 — Current – No Change624Affected non-Charter Council POs$569.4MAffected non-Charter spend157Charter §1109 POs unaffected$358.3MCharter §1109 spend unaffectedThe proposed delegation changes only the final approval venue for qualifying, budgeted transactions; it does not change competition, budget authority, legal review, or matters otherwise requiring Council approval.5 6 8/20/2026
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Existing Controls Remain in PlaceIncreasing delegated authority changes the level of final approval for qualifying transactions — not the underlying controls.Budget Authority• Departments remain limited to adopted appropriations and approved purposes.• Signature authority does not create or increase budgetary authority.Procurement Requirements• Competitive requirements, documentation, ethical standards, and Purchasing oversight continue.• Informal procurements remain competitively solicited.Agreement and Legal Review• Required departmental, Purchasing, Contract Management, Finance, and City Attorney review remains.• Agreements do not bypass established execution requirements.
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Council Oversight & Public TransparencyPublic Reporting• Periodic public reporting of delegated agreements and amendments, including cumulative contract value.Anti-Fragmentation•Contracts may not be divided into separate procurements, phases, or amendments to avoid approval or procurement thresholds.Council Authority Preserved•Council approval remains required when independently required or when cumulative value exceeds delegated authority.Implementation Review• Staff will return to Council within 12 months to evaluate implementation and recommend any necessary refinements.7 8 8/20/2026
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Operational EfficienciesReduced routine agenda processing creates administrative capacity for contract administration, compliance, strategic sourcing, complex procurements, vendor outreach, and procurement planning.Option 2 — $220,000Option 1 — $350,000Measure73119Average Council Actions Eliminated Annually996 hours1,635 hoursAverage Administrative Capacity Redirected Annually94.0% of affected spend87.4% of affected spendCouncil Review RetainedNo ChangeNo ChangeCharter §1109 Construction ProcurementsEstimates use the City’s documented Legistar routing analysis of approximately 13.7 staff hours per procurement agenda item.
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Peer Agency ComparisonRiverside’s current procurement and delegated authority thresholds are below the averages of comparable California agencies.$50,000Riverside formal threshold$116,923Peer average formal threshold7 of 13Peers above Riverside$220,000/$350,000Recommended threshold$100,000Riverside CM authority$178,831Peer average CM authority9 of 13Peers with greater authority$220,000Recommended authorityThe peer analysis supports increasing Riverside’s procurement and approval authority; the recommendation reflects the City’s policy and operational analysis.9 10 8/20/2026
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Purchasing ExceptionsThe proposed Resolution adds or expands narrowly defined exceptions for specialized operational needs.Fleet• Expands flexibility for acquisition, lease, maintenance, repair, outfitting, and support.• Addresses vehicle availability, model-year timing, production allocations, pricing windows, and specialized configurations.• Permits authorized methods such as quotations, negotiation, Piggy-Backing, Cooperative Purchasing, and State contracts.Employee Benefits• Limited to employee-negotiated or employee-authorized voluntary benefit programs paid predominantly by participating employees.• Recognizes the City primarily as administrative sponsor or facilitator.• Human Resources, legal, administrative, and collective bargaining requirements continue.Police K-9• Covers acquisition, care, veterinary services, boarding, equipment, supplies, and specialized training.• Addresses time-sensitive health, safety, readiness, and specialized-provider needs.• Supports timely access to qualified providers and specialized goods and services.
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Definitions, Clarifications & Change OrdersAdditional amendments improve consistency and reduce uncertainty in applying procurement requirements.Definitions• Adds a definition of Piggy-Backing and distinguishes it from Cooperative Purchasing.• Clarifies the City’s direct contractual relationship with the awarded vendor.Clarifications• Revises Field Order provisions for applicable Construction and Design-Build activities.• Adds Professional Services references where the term was not expressly included.Change Orders — §1104• Reorganizes and clarifies when changes may be processed by Change Order.• Clarifies cumulative authority and when approval must return to the original Awarding Entity.• Aligns applicable non-construction thresholds with delegated authority.11 12 8/20/2026
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That the City Council:1. Approve and Adopt the technical and administrative amendments to the Purchasing Resolution, including revised definitions, purchasingexceptions, and ministerial corrections;2. Approve and Adopt one procurement method threshold alternative for goods, services, and professional services. Charter Section 1109construction procurement and approval requirements remain unchanged under each alternative:a. Procurement Thresholdsi. Option 1 – Single Citywide Procurement Threshold: One quote for purchases of $15,000 or less, informal competitive procurementfor purchases from $15,000.01 - $350,000, Formal Over $350,000ii. Option 2 Dual Procurement Threshold by funding source: One quote for purchases of $15,000 or less, informal competitiveprocurement for non-federally funded purchases from $15,000.01 - $220,000 and federally funded purchases from $15,000.01through $350,000; and formal competitive procurement above the applicable threshold.iii. Option 3 Current thresholds: No change to the current procurement method thresholds.b. City Manager Approval Authority alternative for qualifying goods, services, and professional services agreements, subject to thetransparency and control measures described in this report and incorporated in the amended Purchasing Resolution:i. Option 1 ($350,000 or less)ii. Option 2 ($220,000 or less)iii. Option 3 (Current authority - No change);3. Repeal Purchasing Resolution No. 24101; and4. Direct staff to provide a report to the City Council within 12 months of implementation evaluating procurement-cycle impacts, use ofdelegated authority, compliance with reporting requirements, vendor participation, contract amendments, and any recommendedrefinements to procurement or delegated authority controls.Recommendations RiversideCA.gov14
"Open Floor for Questions and Discussion"Q&A13
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