CITY OF SANTA MARIA
Purchasing Guidelines
Manual Update
JULY 1, 2025
Background
• Adopt a Resolution approving the amendments to the
City’s Purchasing Guidelines manual to take effect July 1, 2025.
– Provides City departments with guidance,
procedures, and formal policies when purchasing
goods and/or services
• Guidance for construction of “public projects”
• Federally funded projects limitations
Historical Updates
• March 12, 1964 – a City Administrative Memorandum
(CAM) on purchasing procedures was issued
• March 20, 2007 – the Santa Maria Municipal Code
("SMMC") Chapter 3-4 Purchasing System was
rewritten to reflect current purchasing practices and
adopted through Ordinance No. 2007-02
• June 29, 2018 – a revision adjusting thresholds for
public works and added Federally Funded
Procurements and Federal Transportation
Administration Procurements sections
Purchasing Threshold Updates
• Non-Public Works Purchases
Approval
Authority
Purchase Type Current Max
Threshold
New Max
Threshold
Department
Staff
No contract/PO $1,000 $5,000
Dept. Director
or designee
Open
Market/Informal
Bid
$10,000 $15,000
Dept. Director &
Finance
Director
Open
Market/Informal
Bid
< $75,000 <$75,000
Finance
Director & City
Manager
Open
Market/Informal
Bid
< $75,000 < $100,000
City Council Formal Bid $75,000+ $100,000+
Purchasing Threshold Updates
• Public Works Purchases
Approval
Authority
Purchase
Type
Current Max
Threshold
New Max
Threshold
Dept. Director No Bid < $45,000 < $75,000
City Manager Informal Bid $175,000 $220,000
City Council Formal Bid $175,000+ $220,000+
Purchasing Threshold Updates
• Federally Funded Procurements – follow limitations set in the 2 CFR Part D
– Non-Public Works purchasing thresholds are within
federal limitations
– Federally Funded Public Works purchases follow
these max limitations:
Approval
Authority
Purchase
Type
Current Max
Threshold
New Max
Threshold
Dept. Director No Bid < $45,000 < $50,000
City Manager Informal Bid < $75,000 < $100,000
City Council Sealed Bid $75,000+ $100,000 +
Benefits of Updates
• Applies Government Finance Officers’ Association’s
(GFOA’s) Best Practices and Standards
• Plans for Enterprise Resource Planning (ERP) System
Security
– Increases transparency and efficiency
• System workflow approvals configured into system
• Average System Transactions have grown by 25% in
the last six years
• Inflation has risen by 23.1% in the last five years
• Changes do not increase budgets
• Changes do not decrease auditability
Local Survey Data
• Received five responses from local agencies
– 2 agencies – Max threshold to not require a purchase
order is $5,000
• 2 agencies - $3,500
– 2 agencies – City Manager max threshold is
~$100,000
– Department Directors have various approval
thresholds.
Recommendation
• Adopt a Resolution approving the amendments to the
City’s Purchasing Guidelines manual to take effect July 1, 2025.
• Questions & Comments