TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:December 2, 2025
SUBJECT: Purchasing Ordinance Update
RECOMMENDATION:
1. Read ordinance in title only, waive further reading, and if no objections, introduce ordinance amending Thousand Oaks Municipal Code (TOMC) Title 2, Chapter 1, Sections 1.211 and 1.213 regarding delegation of authority to City Manager, and Section 1.503 regarding delegation of authority to City Attorney; repealing and replacing Title 3, Chapter 10 of the TOMC, which includes: minor administrative changes, increase to Department Purchase threshold and requirement of contracts for and purchase orders up to amount as specified; increases to the thresholds for contract approvals for Department Head, City Manager, and City Council authority levels; addition of City Attorney authority to approve legal services contracts up to specific thresholds; increase in threshold for Task Order limit for on-call professional services agreements; allowing City Manager authority to approve Task Orders for on-call professional service agreements with reimbursable costs from Development Project Applicant up to the not-to-exceed amount of the master agreement; and the addition of single-source purchases.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to update the Purchasing Ordinance is included in the Adopted FY 2025-26 General Fund Budget.
BACKGROUND:
The purpose of the City’s Purchasing Ordinance (per TOMC Section 3-10.101), as stated in its introduction, is to “establish an efficient procedure for the purchase of
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supplies, services, and equipment, and to establish a procedure for performing or contracting for the construction of public works consistent with state law. These procedures shall not be overly time-consuming and cumbersome, while allowing the City to obtain the best professional services, and acquire quality supplies, general services, and equipment in an overall economic manner, and also to construct public works at the lowest reasonable cost. The purpose of this ordinance is to emulate best practices in the purchasing procedures.” The Purchasing Ordinance was first established in July 1965 through Ordinance No. 37 and has undergone several revisions over the years. Notable amendments include Ordinance Nos. 490-NS in 1974 and 725-NS in 1979. A comprehensive amendment was made by Section 1 of Ordinance No. 1114-NS, effective July 16, 1991, when the City adopted the California Uniform Public Construction Cost Accounting Act (CUPCCAA) for all Public Works Construction Projects. The Purchase Order threshold, requiring a purchase order and three quotes for department purchases, was increased from $3,000 to $5,000, effective December 15, 2005. Further amendments to Chapter 10 were made by Part 1 of Ordinance No. 1553-NS, effective May 13, 2011, and by Section 1 of Ordinance No. 1638- NS, effective January 12, 2018.
In the most recent update, effective January 12, 2018, the City Manager's authority to execute contracts was increased from $50,000 to $75,000 for professional services, general services, supplies, and equipment. It also allowed the City Manager to execute informal public project construction contracts up to $175,000 or the current limit as specified by the California Public Contract Code (PCC), which adjusts based on changes made by CUPCCAA. Additionally, the update gave Department Heads the authority to execute contracts up to $25,000.
As the City elected to be subject to CUPCCAA in 1991, the City follows the policies found in the PCC, Section 22030 et. seq. The State passed Assembly Bill 2192 to increase the thresholds of the PCC Section 22032 and 22034 effective January 1, 2025. Table 1, on the following page, shows the updated thresholds in the PCC.
Table 1 - Public Contract Code Updates
Procurement Method Approval
Authority
Previous Threshold Updated
Threshold
Force account, negotiated
contract, or purchase
order
CM* Up to $60,000 Up to $75,000
Informal Bidding
Procedures
CM* Up to
$200,000
Up to $220,000***
Formal Bidding
Procedures
CC** Over $200,000 Over $220,000
*City Manager **City Council ***For informal bidding procedures, if all bids received are in excess of $220,000, the governing body of the public agency may, Purchasing Ordinance Update
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by adoption of a resolution by a four-fifths vote, award the contract, at $235,000 or less. The previous threshold for this amount was $215,000.
In addition to Purchasing Ordinance updates, the powers and responsibilities of the offices of the City Manager and the City Attorney are found in TOMC Sections 2-1.211, 2-1.213, and 2-1.503. These sections have not been updated since 1985 and are in need of revision to correspond to their authority under the Purchasing Ordinance and to clarify the methods by which they can be delegated additional authority by City Council.
DISCUSSION/ANALYSIS:
Due to inflation, the cost of goods and services has increased significantly since the previous update of the Purchasing Ordinance in 2018. To assess the rise in costs and how it affects purchasing processes, City staff analyzed data from the Bureau of Labor Statistics (BLS) regarding the Consumer Price Index (CPI) and the Employment and Wages Data Viewer, as well as information from the Federal Housing Finance Agency (FHFA) on the Housing Price Index in Ventura County (VC). This data provides useful benchmarks for understanding economic conditions that could influence purchasing power and budgetary constraints. Table 2 below summarizes the increases in prices, property values, and wages over the years.
Table 2 – Cost Increases Over the Years
Year Initial
Value
Current
Value
%
Increase
Source
2005 $5,000 $8,311 66% BLS CPI Inflation Calculator
2018 $700,000 $1,083,685 55% FHFA House Price Index - VC 2020 $63,442 $70,487 11% BLS Employment and Wages
Data Viewer
In addition, staff analyzed the data from the California Association of Public Procurement Officers (CAPPO) Procurement Survey along with local agency data from 75 California public agencies in February 2025. This data shows how the City’s purchasing thresholds compare with other agencies’ purchasing processes. This comparative analysis offers insight into the City's thresholds in relation to its peers. On the following page, Table 3 shows the number of agencies per threshold amount for requiring three quotes. Table 4, also on the following page, shows the thresholds for requiring a formal public bid or formal request for proposals/qualifications (RFP/Q) that is publicly advertised for the public agencies.
Table 3 - 75 California Cities Surveyed
Three Quotes Threshold
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Dollar Threshold Number of Agencies Percentage
$5,000 or less 26 35%
$7,500 or less 1 1%
$10,000 or less 20 27%
$25,000 or less 16 21%
$50,000 or less 7 9%
Over $50,000 4 5%
No Response 1 1%
Table 4 - 75 California Cities Surveyed
Formal Solicitation Threshold
Dollar Threshold Number of Agencies Percentage
$25,000 or less 14 19%
$30,000 or less 1 1%
$45,000 or less 1 1%
$50,000 or less 23 31%
$75,000 or less 9 12%
$100,000 or less 18 24%
$150,000 or less 2 3%
$200,000 or less 2 3%
$250,000 or less 1 1%
Over $250,000 2 3%
No response 2 3%
Table 5 on the following page shows a summary of City contracts issued during the last fiscal year at each of the different dollar thresholds. During the previous fiscal year, the City issued 460 contracts with particular dollar-amount thresholds.
Of the 460 contracts awarded, 225 (49 percent) were under $25,000 and executed by the Department Head. 121 (26 percent) between $25,000.01 and $75,000 were executed by the City Manager. 114 (25 percent) were recommended to City Council for review and approval. Analyzing contract data by dollar thresholds provides valuable insight into the City's purchasing processes. Categorizing contracts by these thresholds helps understand distribution and decision-making from departmental approvals to City Council reviews. This review identifies areas for efficiency and oversight improvement.
Table 5 - Contract Issued by Dollar Threshold
July 1, 2024 – June 30, 2025
Dollar Threshold Contracts Issued Percentage
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Under $5,000 142 31%
$5,000.01 - $10,000 46 10%
$10,000.01 - $25,000 37 8%
$25,000.01 - $50,000 22 5%
$50,000.01 - $75,000 99 22%
$75,000.01 - $100,000 5 1%
$100,000.01 - $125,000 3 1%
$125,000.01 - $150,000 3 1%
Over $150,000 103 22%
Total 460 100%
To understand the impact of purchasing policies, processes, and procedures on City staff and operations, Purchasing staff conducted 15 focus groups with stakeholders from various departments across the City between May and August 2025. From these focus groups, several key themes emerged:
1) Outdated thresholds in the Purchasing Ordinance;
2) Clarifications needed in the Purchasing Ordinance and/or Purchasing Manual; 3) Process Improvements: Streamlining and Transparency; 4) Requests for Additional Resources; and
5) Common Challenges across departments.
Based on the key themes identified, Purchasing staff developed a comprehensive purchasing update to modify the Purchasing Ordinance, revise the administrative purchasing manual, develop additional training resources, and improve purchasing processes. The findings and proposed changes were presented to key staff across all departments on October 30, 2025. Staff supported the recommendations and had no additional concerns with the proposed changes. A full copy of the revised Purchasing Ordinance is included as Attachment #1.
Contract Approval Authority and Purchasing Thresholds
Staff recommends an increase to the contract approval limits as outlined in TOMC Section 3-10.108. The updated contract approval limits are detailed in Table 6. For contracts considered Public Projects under the PCC, the City will adhere to PCC limits. Additionally, the update grants the City Attorney the authority to approve contracts for legal services up to $100,000. Staff also recommends an update to TOMC Sections 2-1.211, 2-1.213, and 2-1.503 in order to clarify the delegated authority of the City Manager and the City Attorney to execute contracts and other documents and set forth the manner through which City Council’s delegation may be accomplished.
Table 6 - Contract Approval Limits
Approval Level Current Threshold Proposed Threshold
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Contract Required Over $5,000 Over $10,000
Department Head $0 - $25,000 $0 - $50,000
City Manager
City Attorney for Legal Services
$25,000.01 - $75,000 $50,000.01 - $100,000
City Council $75,000.01 and above $100,000.01 and above To align with the updated contract approval limits, the recommended changes to the purchasing process thresholds are provided in Table 7. Informal solicitation involves sending a request for quotes or proposals directly to vendors, requiring a minimum of three written responses. Formal solicitation, such as formal bids or formal requests for proposals/qualifications, is publicly advertised, allowing any vendor to respond through the City’s eProcurement portal.
Table 7 - Purchasing Process Thresholds
Purchasing Process Current Threshold Proposed Threshold Purchase Order Required
(Sec. 3-10.105 and 3-10.201)
Over $5,000 Over $10,000
Informal Solicitation
(Sec. 3-10.201b and 3-10.401c)
$5,000.01 - $75,000 $10,000.01 - $100,000
Formal Solicitation
(Sec.3-10.201c and 3-10.401d)
$75,000.01 and above $100,000.01 and above
Staff also recommend an increase in the thresholds for task orders for on-call professional services that are not subject to the PCC. The proposed updated thresholds for the purchasing processes and approval levels for task orders for on- call professional services contracts are shown in Table 8 below. To enhance efficiency for development projects, the update will also give additional authority to the City Manager for approval of task orders for services that are reimbursed by a development project applicant.
Table 8 - Updated Thresholds for Task Orders for On-Call Professional Services Contracts (Sec. 3-10.108c)
Approval Level Current Amount Proposed Amount
Department Head $0 - $25,000 $0 - $50,000
City Manager $25,000.01 - $75,000 $50,000.01 - $100,000* City Council $75,000.01 - $125,000 $100,000.01 - $150,000 *For services that will be reimbursed by a development project applicant, the City Manager will have the authority to approve task orders up to the not-to-exceed amount of the master agreement previously approved by City Council.
As the City has elected to follow CUPCCAA for Public Projects, the update will also remove the specific threshold amounts that are in the Purchasing Ordinance and instead reference the relevant PCC sections and allow the City Manager to continue to approve the contracts up to the informal bidding limit amount specified Purchasing Ordinance Update
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in PCC Sections 22032 and 22034.
Additional Ordinance Modifications
The following list of proposed modifications to the Purchasing Ordinance provides clarifications regarding solicitation exemptions, sole and single-source purchases, and other purchasing procedures.
A. Solicitation Exemptions (Sec. 3-10.107)
1. Provide clarification and expand the definition of “subscriptions.” Subscriptions will include periodical subscriptions as well as commercial off-the-shelf software subscriptions and licenses that do not have customization.
2. Expand the definition of “books” to include electronic resources.
3. Expand “land” to include acquisition-related services such as title and escrow services.
4. Replace “attorney fees” with “legal services” to include other types of legal services such as court reporting and medical transcription.
B. Sole and Single Source Purchases (Sec. 3-10.102 & 202)
1. Add sole and single-source definitions to Sec. 3-10.102 and 202 and update the title of Section 202 to non-competitive procurement methods. a. Sole source purchases are unique commodities or services that can be obtained from only one vendor, or one distributor authorized to sell in this area, with singular characteristics or performance capabilities or which have specific compatibility components with existing City products are exempt from the competitive bidding requirements.
b. Single-source purchases are when a number of sources exist that are capable of supplying the product or service, but it is decided for a specific compelling reason to direct the purchase to a particular source.
2. Update the approval limits for sole and single-source purchases to match current authority thresholds.
C. Purchasing Process Procedures
1. Submission of quotes, bids, and proposals will be emailed or submitted through the City’s eProcurement portal for informal requests for quotes or proposals (Sec.
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3-10.201b and 3-10.401c) instead of mailed or faxed.
2. Submissions for formal bids and RFP/Qs will be submitted through the City’s eProcurement portal (Sec. 3-10.201c and 3-10.401d) instead of being submitted to the City Clerk Department.
3. Submissions for informal and formal bids for Public Work Projects will be submitted through the City’s eProcurement portal (Sec 3-10.305g and 306c) instead of being submitted to the City Clerk Department.
4. Bid security of unsuccessful bidders will be disposed of securely or returned as necessary by the City (Sec. 3-10.201c, 3-10.305c, 3-10.306b) instead of being submitted to the City Clerk Department.
Staff recommend City Council adopt revisions to the Purchasing Ordinance.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Andrew Becker, Purchasing Supervisor
Grace Ng, Assistant Analyst - Purchasing
Attachment:
Attachment #1 – Proposed Purchasing Ordinance
FIN: 370-10\gn\H:\COMMON\Council\2025\Administration\120225 Purchasing Ordinance Update Staff Report