1 City Council Meeting: March 10, 2026 Santa Monica, California ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 2.24, PURCHASING SYSTEM, TO MODERNIZE THE CITY’S PROCUREMENT POLICIES, PRACTICES
AND PROCEDURES
WHEREAS, Section 608 of the Charter of the City of Santa Monica (the “City Charter”) provides that the City of Santa Monica (the “City”) shall, by ordinance, adopt procedures and requirements for the purchase of supplies and equipment, for the provision of professional services, and for the award of bids for public works projects; and WHEREAS, Section 608 of the City Charter further provides that such ordinance should preserve public confidence in the integrity and openness of the City’s contracting process, protect public funds, and ensure that the City obtains materials or service of appropriate quality; and
WHEREAS, Section 1507 of the City Charter provides that the City shall have a centralized purchasing system for all City departments and agencies, under the control of the City Manager, who shall recommend to the City Council to consider and adopt an ordinance and rules and regulations governing the contracting for purchasing, storing and distribution of all supplies, materials and equipment required by an office, department or agency of the City; and
WHEREAS, Section 1507 of the City Charter further establishes certain nonexclusive powers and requirements of the Purchasing Agent; and WHEREAS, Section 1508 of the City Charter provides that before making any purchase of, or contract for, supplies, materials or equipment, the Purchasing Agent shall 2 give ample opportunity for competitive bidding, under such rules and regulations and with such exceptions as the City Council may prescribe by ordinance; and WHEREAS, on November 3, 1992, City voters approved Proposition S, amending Section 608 of the City Charter and increasing the dollar limit threshold for professional services contracts approved by the City Manager to $50,000, subject to future Consumer Price Index (“CPI”) adjustments; and
WHEREAS, in accordance with the provisions of Sections 608, 1507 and 1508 of the City Charter, the City Council of the City of Santa Monica (the “City Council”) has, by ordinance, established a purchasing system as set forth in Chapter 2.24 of the Santa Monica Municipal Code (“Chapter 2.24”); and
WHEREAS, on November 26, 2013, the City Council adopted Ordinance Number 2447 (CCS) (“Ordinance 2447”) amending portions of Chapter 2.24 in order to: increase the threshold dollar limits for convenience purchase orders, formal bidding procedures, and professional services contracts approved by the City Manager; establish standard bidding procedures for professional services contracts; delegate certain authority to the purchasing agent; and establish a standard protest procedure for certain purchases; and WHEREAS, on July 12, 2016, the City Council adopted Ordinance Number 2523 (CCS) to simplify the protest procedure established by Ordinance 2447 and to simplify and codify the protest procedure for public works contracts; and WHEREAS, on April 23, 2019, the City Council adopted Ordinance Number 2608 (CCS) to increase the threshold limits for certain awards and align the Santa Monica Municipal Code with current and proposed procurement practices; and 3 WHEREAS, the City’s current procurement system has limited flexibility that slows project delivery and leads to inconsistent practices across City departments; and WHEREAS, the City’s legacy policies, complex workflows, and inconsistent processes can hinder timely contracting and increase internal administrative burden; and WHEREAS, combined, these existing challenges hinder the City’s ability to act swiftly, collectively limits the organization’s capacity to adapt to the inflationary environment affecting the costs of goods and services, and impacts the City’s ability to effectively meet operational needs; and
WHEREAS, modernizing the City’s procurement system will allow the City to address fragmented processes and improve flexibility and the ability to act more swiftly while maintaining a centralized purchasing system; and
WHEREAS, adoption of a Procurement Policy by the City Council on an annual basis, along with the City budget, will allow for the City to adjust procurement thresholds and practices without requiring amendments to the Municipal Code, thereby improving responsiveness and administrative efficiency while maintaining transparency; and WHEREAS, adoption by City staff of an Administrative Instruction will provide guidance on day-to-day procurement activities that are consistent with the Municipal Code and the Council-adopted Procurement Policy; and
WHEREAS, on February 24, 2026, the City Council conducted a duly noticed meeting and desires to amend the procurement ordinance to create a clearer hierarchy of authority, improve efficiency, and empower the City to adapt procurement practices and thresholds as the organization and economic conditions evolve.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA 4 DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 2.24 of the Santa Monica Municipal Code is hereby amended and shall read in its entirety as set forth in Exhibit A, attached hereto.
SECTION 2. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective thirty days after its adoption, and implementation shall occur upon adoption of a Procurement Policy by the City Council.
APPROVED AS TO FORM:
_________________________
HEIDI VON TONGELN
Interim City Attorney
5 EXHIBIT A
Amendments to Chapter 2.24, Purchasing System
Chapter 2.24 PURCHASING SYSTEM
2.24.010 Purpose.
The purpose of this chapter is to establish roles and authorities, consistent with Sections 608, 1507 and 1508 of the City Charter, for the purchase of all goods and services, contracts for the construction of public works projects, and the disposition of property.
2.24.020 Powers and Duties - Purchasing agent.
a. Appointment. The Director of Finance shall appoint the Purchasing Agent. b. Powers and Duties. The Purchasing Agent shall have the powers and duties set forth in Section 1507 of the City Charter. In addition, subject to the provisions of this Chapter, the Purchasing Agent shall have the power to:
1. Establish and enforce specifications with respect to:
A. Supplies, materials, and equipment required by the City; B. Supervise the inspection of all deliveries and determine conformance with specifications;
2. Have charge of such general storerooms and warehouses as are established by the City Council; and sell or transfer to or between offices, departments or agencies, surplus, obsolete, or unused supplies, materials or equipment;
3. Declare goods as surplus, obsolete or unused and authorize the transfer or disposal of such goods consistent with all applicable laws and regulations;
4. Cancel solicitations and re-solicit bids or proposals when cancellation is in the City's best interest for reasons including, but not limited to, when the City determines that:
6 A. The City does not require the goods, services, or construction of the public works project;
B. The City does not require a third party to provide the goods, services, or construct the public works project;
C. Proposed amendments to the solicitation document make a new solicitation desirable or necessary;
D. Prices or costs exceed the City's cost estimates;
E. No bids or proposals have been received in response to the solicitation; or
F. A procedural irregularity – including, but not limited to, failure to properly notice the solicitation or a material error in specifications – exists that could materially affect the outcome of the solicitation.
2.24.030 Procurement Policy.
The City Manager shall prepare a Procurement Policy to be adopted annually by the City Council with the City budget to implement the provisions of this Chapter. a. The Procurement Policy shall, at a minimum, establish:
1. Thresholds for City Manager and City Council approval;
2. Procedures for competitive bidding and selection; and
3. Standards to avoid conflicts of interest, ensure impartiality, and communications during active solicitations.
b. The Procurement Policy may also include, but not be limited to, exceptions to competitive bidding, policies addressing local boycotts, use of sustainable goods and price preferences for local businesses.
7 c. The Procurement Policy shall not conflict with, but may be in addition to, the provisions of this Chapter.
2.24.040 Administrative regulations.
The City Manager, or the Director of Finance as designated by the City Manager, is authorized to adopt written administrative regulations and instructions that are consistent with and that further provide guidance for implementation of the terms and requirements set forth in this Chapter and the Procurement Policy as adopted by the City Council.
2.24.050 City Council awards.
The City Council shall award:
a. Purchases of goods, professional and contractual services, and other contracts within the thresholds established in the Procurement Policy; b. Any other purchases and contracts that have not been otherwise authorized under this Chapter, unless the City Council has authorized a City officer or employee to negotiate a contract on behalf of the City without further Council approval.
2.24.060 City Manager authority.
a. The City Manager, or his or her designee pursuant to subsection (b) below, is authorized to make purchases for the following:
1. Purchases of goods, professional and contractual services, and any other contracts within the thresholds established in the Procurement Policy;
2. Emergency purchases in accordance with the Procurement Policy; and
3. Agreements to rent, lease or license real property valued within the thresholds established in the Procurement Policy or entered pursuant to express approval by the City Council.
8 b. The City Manager may delegate authority to make purchases and awards under this Section. All such delegations shall be in writing and dated and shall specify the limits of the authority delegated, including, without limitation, the type of purchase, dollar amount, and the terms of any contracts that will be executed under the delegation. All such delegations of authority shall be kept on file by the Purchasing Agent.
2.24.070 City Attorney authority.
The City Attorney is authorized to solicit, award, and enter into contracts for legal and legal-related services, including, but not limited to, services provided by outside legal counsel, investigators, mediators, arbitrators, hearing officers, expert witnesses, forensic accountants, litigation support providers, e-discovery vendors, consultants, and other professionals, as necessary to represent and protect the interests of the City.
This authority includes, without limitation, services provided in connection with matters including: (1) claims against the City; (2) pending or anticipated litigation; (3) administrative, regulatory, or enforcement proceedings; (4) alternative dispute resolution; (5) internal investigations; (6) transactional or project-based legal matters, including, but not limited to, land development and real property disposition; (7) legislative or ballot measure-related matters; (8) bankruptcy or insolvency matters; and (9) other legal or related matters in which the City has an interest.
2.24.080 Purchasing Agent authority.
The Purchasing Agent is authorized to, within the thresholds established by the Procurement Policy:
a. Issue purchase orders and contracts;
9 b. Sell goods that have been declared surplus, obsolete or unused by bid, auction, negotiated sale, trade-in or exchange;
c. Donate goods that have been declared surplus, obsolete or unused; and d. Make emergency purchases in accordance with the Procurement Policy.
2.24.090 Department Head and Emergency Services Manager authority.
In accordance with the thresholds and procedures set forth in the Procurement Policy:
a. Each Department Head is authorized to make purchases of goods and services; b. The Emergency Services Manager is authorized to make emergency purchases; c. The Director of Public Works, the City Engineer or the Capital Improvement Manager, is authorized to issue task orders for as-needed services agreements; and d. The Director of Human Resources is authorized to award and enter into contracts for personnel services and benefit agreements.
2.24.100 Award Procedures
Before making any purchase of, or contract for, supplies, materials or equipment, the Purchasing Agent shall give ample opportunity for competitive bidding, under such rules and regulations and with such exceptions as prescribed by the Procurement Policy adopted by City Council. In determining the best bidder for award of contractual services or other agreements and/or the best qualified person or firm for award of professional services or other agreements, the City shall consider all of the following criteria that are relevant to the solicitation:
a. Best Bidder.
1. Price;
2. The quality of the material or services offered;
10 3. The ability, capacity and skill of the bidder to perform or provide the materials or services;
4. The capacity of the bidder to perform the contract or provide the service promptly, within the time specified, and without delay or interference;
5. The sufficiency of the bidder's financial resources;
6. The character, integrity, reputation, judgment, training, experience and efficiency of the bidder;
7. The ability of the bidder to provide such future maintenance or service as may be needed;
8. Any other factor that will further the intent set forth in Section 608 of the City Charter.
The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the bid with the lowest price. b. Best qualified person or firm.
1. The training, credentials and experience of the person or firm;
2. The capacity and demonstrated competence, ability, and skill of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay;
3. The sufficiency of the person's or firm's financial and other resources;
4. The character, integrity, reputation and judgment of the person or firm;
5. The ability of the person or firm to provide such future service as may be needed; and
11 6. The price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive.
The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the proposal with the lowest price.
2.24.110 Protests.
Any bidder or proposer may protest an award recommendation pursuant to the competitive bidding requirements of this Chapter.
a. Protests shall be filed in writing within seven consecutive calendar days following notice of the recommended award, or prequalification determination if prequalification is permitted under the Procurement Policy.
b. Protests must include the name, address and telephone number of the protestor and/or the person representing the protesting party. The written protest must set forth, in detail, all grounds for the protest, including, without limitation, all facts, supporting documentation, legal authorities, and arguments in support of the grounds for the protest.
All factual contentions must be supported by evidence. Any matters not set forth in the written protest will be deemed waived. Any protest not conforming to the requirements of this Section may be rejected as invalid.
c. Protests may be sustained or denied. When a protest is sustained, the awarding authority may, based on the evidence presented:
1. Reject all bids or proposals and order a re-solicitation; or
2. Recommend an alternate best bidder or best qualified person or firm by applying the criteria set forth above, as applicable.
12 d. Once a protest has been filed, no solicitation shall be awarded until a final determination on the protest has been issued.
e. The City Manager, or designee, shall review and decide all protests relating to solicitations made pursuant to the informal and formal solicitation procedures set forth in the Procurement Policy. The City Manager, or designee, shall issue a written determination stating the reasons for sustaining or denying the protest within ten days of receiving the protest. This written determination shall constitute the City’s final decision on the protest.