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HomeMy WebLinkAbout8.1 Introduction of an Ordinance Amending Chapter 2.36 (Contracts and Purchasing) of the Dublin Municipal CodeSTAFF REPORT CITY COUNCIL Page 1 of 5 Agenda Item 8.1 DATE: October 7, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Introduction of an Ordinance Amending Chapter 2.36 (Contracts and Purchasing) of the Dublin Municipal Code Prepared by: Darlynn Haas, Management Analyst II, Julius Pickney, Management Analyst II, and Rhonda Franklin, Management Analyst II EXECUTIVE SUMMARY: The City Council will consider introducing an Ordinance amending the Dublin Municipal Code related to Purchasing Policy thresholds. The proposed updates are intended to create efficiencies in the City’s purchasing activities, incorporate recent updates to the California Uniform Public Construction Cost Accounting Act, and align the City’s practices with the industry best practices. STAFF RECOMMENDATION: Waive the reading and introduce the Ordinance Amending Chapter 2.36 (Contracts and Purchasing) of the Dublin Municipal Code. FINANCIAL IMPACT: There is no direct financial impact associated with this item; however, efficiencies gained in the purchasing process are expected to result in indirect cost savings through improved staff productivity. DESCRIPTION: In April 2025, Staff conducted a review of the City’s Purchasing Policy to evaluate how well it aligns with best practices in governmental purchasing, including accounting for inflationary impacts, legislative changes, and evolving operational needs. As part of this effort, Staff analyzed guidance from state purchasing regulators, collected data from neighboring cities, and evaluated internal operations. This report presents the results of the research and includes proposed amendments to the Purchasing Policy to create efficiencies and provide the flexibility Staff requires to respond nimbly to the community’s needs. 585 Page 2 of 5 Background Cities purchase goods and services through procurement policies and procedures designed to ensure fairness, transparency, and accountability with taxpayer money. Such policies, which are generally included in agency municipal codes, establish things like definitions of the various types of purchases, competitive bidding requirements and exceptions thereof, and levels of authority to make purchases. While purchasing authority and acquisition methods (i.e., bidding procedures) are two different things, they are almost always aligned. Some acquisition methods are complex and considered high risk, such as those used to award large construction contracts. Thus, it is reasonable that those contract awards would be made at the governing board level. Others are less complex and involve less risk, such as those used to select a mass printin g vendor, and therefore those purchases could reasonably be approved at the Purchasing Agent (e.g., City Manager) level. Said simply, the maximum authority of a City Manager is typically limited to purchases that do not involve a formal bidding process. There are two primary categories into which purchases fall: general services (supplies, equipment, consulting and professional agreements, etc .) and public works contracts, defined as “any agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind ” by the California Public Contract Code (PCC). The PCC is the body of state law governing how public entities in California award contracts for public projects and services. Cities must comply with the PCC, but they can be more restrictive with their own policies. Other agencies’ practices provide guidance on purchasing practices at the local level. These include the California Department of General Services Procurement Division, which publishes the State Contracting Manual. They also include the California Association of Public Procurement Officials (CAPPO), which provides procurement survey data, including public agency information on purchasing policies, procedures, and regulations to help agencies evaluate their own practices. These agencies all generally align with each other in their guidance on acquisition methods. Dublin’s Purchasing Policy The City of Dublin’s Purchasing Ordinance – also called the Purchasing Policy - was adopted in December 1983 (Ord. No. 16-83), shortly after the City’s incorporation. At that time, the City Manager, as Purchasing Agent, was authorized to make purchases of less than $5,000 (for general services as well as public works contracts), with anything above that requiring City Council approval. Purchases over $5,000 also necessitated a formal bidding process, which – at least today - is a lengthy and heavily regulated process. The Ordinance was amended for the first time in February 2000 (Ord. No. 4-00) to update competitive bidding requirements and increase the City Manager’s purchasing authority to 20,000 for all purchases. The most recent update to the Purchasing Policy was made in August 2012 (Ord. No. 12-12) to increase the City Manager’s authority and formal bidding threshold to $45,000 for general 586 Page 3 of 5 services. The City also “opted in” to the California Uniform Public Construction Cost Accounting Act (CUPCCAA), a voluntary program enacted in 1983 as part of the PCC to help promote “uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state” (Section 22001). If a City opts in, its competitive bidding threshold for public works projects can increase above the $5,000 default in Public Contract Code Section 20162. In aligning with the CUPCCAA guidelines at the time, the City Council approved an increase to the competitive bidding trigger and City Manager authority for public works contracts to $100,000. The CUPCCAA itself was most recently updated by Assembly Bill (AB) 2192 during the 2023 - 24 legislative session and became effective January 1, 2025. To create efficiencies and flexibility in how governments operate, AB 2192 implemented a new formal bidding threshold of $220,000 for public works contracts. Despite this change in CUPCCAA guidelines, Dublin has maintained the same purchasing authority and formal bidding thresholds ($45,000 for goods and services and $100,000 for public works contracts) since 2012. Other Local Agencies To further inform the evaluation of Dublin’s Purchasing Policy, Staff analyzed survey data from CAPPO and reached out to neighboring cities. Data from 18 Bay Area public agencies, listed below, were reviewed. Cities/Counties: Berkeley, Contra Costa County, Livermore, Mission Viejo, Mountain View, Oakland, Pleasanton, San Leandro, San Ramon, Santa Rosa Other Agencies: Alameda County Water District, Alameda Municipal Power, Central Contra Costa Sanitary District, Eastern Contra Costa Transit Authority, Golden Gate Bridge Highway and Transportation District, San Mateo County Community College District, Santa Clara Valley Water, Sonoma-Marin Area Rail Transit District The survey data reflect that other agencies have generally kept pace with industry best practices, with the average City Manager purchasing authorities at $100,000 and $200,000 for the two purchase types, as shown in Table 1. These limits typically align with bidding thresholds as well. Table 1: Average City Manager Purchasing Authority Goods and Services Public Works Projects Amounts Percentage Amounts Percentage 50,000 25% $50,000 28% 75,000 16% $75,000 11% 100,000 36% $100,000 11% 200,000+ 23% $200,000+ 50% 587 Page 4 of 5 Data from the cities of Livermore, Pleasanton, and San Ramon are listed in Table 2, including the period the purchasing limit was last updated. Table 2: City Manager Purchasing Limit from Livermore, Pleasanton, San Ramon City Goods & Services / Professional Services Public Projects Livermore (July 2025) $200,000 $200,000 Pleasanton (June 2025) $100,000 $200,000 San Ramon (July 2018) $100,000 $100,000 Operational Considerations in Dublin It takes an estimated 12 hours of staff time to bring a contract to the City Council if formal bidding is involved. This includes time spent completing and preparing bidding procedures and reviewing responses, drafting and reviewing contract documents, routing the contract for internal approval, preparing City Council agenda materials, and presenting the item. Using an average, fully loaded hourly rate of $137.90 for the Analyst level and up, this equates to a cost of approximately $1,700 per contract or purchase. Over the past three fiscal years, 178 contracts were presented to the Dublin City Council, with 153 for goods and services and 25 for public projects. Thirty-nine of the contracts (22%) were for amounts between $45,000 and $100,000, with an estimated total of 468 staffing hours spent on these contracts, or about $65,000 over the three-year period. Moreover, the rising cost of construction materials and labor has far outpaced the City Manager’s purchasing limit and competitive bidding threshold of $100,000 for public works contracts. A simple but needed repair or alteration to one of Dublin’s parks, for example, could require Staff to complete formal bidding, prepare and review the agenda item, and obtain City Council approval before the work can begin. It should also be noted that there are now significant lead times associated with the purchase of specialized equipment, and some items – such as public safety vehicles, which now cost well over $50,000 each – only offer favorable pricing for a specific window of time. With an increase in the purchase authority and formal bidding thresholds, Staff would be able to react and respond more quickly to operational needs and priorities in servicing the community. Conclusion and Recommendation The City’s purchasing authority thresholds have not had a comprehensive update since 2012. Staff’s analysis, pulling from state guidelines and survey data from the other local agencies, shows that the City’s current thresholds are significantly below industry standards. In addition, a review of internal operations reveals that the current Purchasing Policy creates an administrative burden on Staff and hinders the City’s ability to do business efficiently. Therefore, Staff recommends amending the Dublin Municipal Code Chapter 2.36 to increase the formal bidding and City Manager purchasing authority limits to current CUPCCAA limits, and tie future increases of such to the formal bidding thresholds provided in: 1) the California 588 Page 5 of 5 State Contracting Manual (Scope of Purchasing Authority, Section 100.2) for goods and services; and 2) the CUPCCAA for public works contracts. The proposed changes are summarized as follows: Table 3. Proposed Changes Cost Current) Cost Proposed) CM Can Approve Bidding Requirement Goods and Services 5,000 < $10,000 yes Informal quotes 5,000 - $45,000 $10,000 - $100,000 yes 3 quotes: verbal/written 45,000 > $100,000 no Formal bids Public Works Contracts 45,000 < $75,000 yes Informal quotes 45,000 - $100,000 $75,000 - $220,000 yes Informal procedures 100,000 > $220,000 no Formal bids These proposed changes are reflected in the attached Ordinance (Attachment 1). The redlined version is provided as Attachment 2. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Ordinance Amending Chapter 2.36 (Contracts and Purchasing) of the Dublin Municipal Code 2) Redline Amendments to Chapter 2.36 589 Attachment 1 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 7 ORDINANCE NO. XX – 25 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING CHAPTER 2.36 OF THE CITY OF DUBLIN MUNICIPAL CODE RELATING TO PURCHASING AUTHORITY, APPROVAL LIMITS, AND BIDDING PROCEDURES WHEREAS, the City Council of the City of Dublin has established Chapter 2.36 of the Dublin Municipal Code to establish efficient procedures for the procurement of services, supplies, equipment, and public projects; and WHEREAS, the current thresholds for the City Manager (designated as Purchasing Agent) authority and bidding requirements have not been updated since the adoption of Ordinance 12-12, and do not reflect current State guidance, best practices, or regional benchmarks; and WHEREAS, Staff conducted a data analysis of neighboring cities, and collected information from the California Uniform Public Construction Cost Accounting Act (CUPCCAA), the California Department of General Services Procurement Division, and the California Association of Public Procurement Officials, and found that increasing purchasing authority thresholds and bidding requirements would align the City with State guidance and local best practices; and WHEREAS, California Public Contract Code Section 22032 permits public projects of two hundred twenty thousand dollars ($220,000) or less to be contracted through informal bidding procedures, and the State’s Scope of Purchasing Authority 100.2 provides that goods and services procurement of up to one hundred thousand ($100,000) may be treated at an informal level; and WHEREAS, the City Council finds that increasing the purchasing authority and bidding levels will enhance efficiency, reduce administrative costs, improve timely acquisition of goods and services, and maintain appropriate financial oversight consistent with State guidance. NOW, THEREFORE, The City Council of the City of Dublin does ordain the following: Section 1. Amendment to Section 2.36.020. Section 2.36.020 is amended to read as follows: For the purposes of this chapter, the words set out in this section shall have the following meanings: A. “Consultant or professional services” means the services rendered by architects, attorneys, engineers, doctors, financial consultants, planning or environmental consultants, investment advisors, bank or trustee officers, and other professional or specialized consultants. B. “Contract” means any agreement to do or not do a certain thing. For the purposes of this chapter, “contract” and “agreement” are synonymous. The term “contract” includes, but is not limited to, a purchase order; a contract for services; an addendum or change 590 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 2 of 7 order, which means a change or addendum to an executed contract; a letter of agreement; and a memorandum of understanding. C. “Force account” is a term used by the Uniform Construction Cost Accounting Procedures meaning an account which is used to account for work performed on public projects using internal resources, including but not limited to labor, equipment, materials, supplies, and subcontracts of the public agency. D. “Emergency” means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. E. “General services” means and includes any work performed or services rendered by an independent contractor, with or without the furnishing of materials, including, but not limited to, the following: 1. Maintenance or nonstructural repair of city buildings, structures or improvements which does not require engineering plans, specifications or design, including, but not limited to, unscheduled replacement of broken window panes, fire extinguisher maintenance, minor roof repairs, plumbing, elevator maintenance, custodial services and pest control, etc.; 2. Repair, modification and maintenance of city equipment and software; 3. Cleaning, analysis, testing, moving, removal or disposal (other than by sale) of city supplies and equipment; 4. Replanting, care or maintenance of public grounds, including, but not limited to, maintenance of trees, shrubbery, flowers, and lawns; 5. Providing temporary personnel services; 6. Providing other miscellaneous services to facilitate city operations; 7. Performing repair, demolition or other work required to abate nuisances under this code; 8. Licensing software services; 9. Leasing or rental of equipment (personal property) for use by the city; 10. Maintenance of equipment owned or leased by the city. General services” does not include consultant or professional services, or work associated with a public project. F. “Goods of a technical nature” means hardware, software, or communications equipment, or any item that is substantially similar to the foregoing as determined by the Purchasing Agent. 591 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 3 of 7 G. “Large contract” means a contract for the purchase of general services or supplies and equipment with a total cost of more than $100,000. Notwithstanding the foregoing, the $100,000 threshold set forth in the previous sentence shall automatically increase if the amount set forth for the “formal level” of contracting in Section 100.2 of the State Contracting Manual or its successor is increased. H. “Large public project” means a “public project,” as defined in subdivision (c) of Public Contract Code section 22002, with a total cost of $220,000 or more. Notwithstanding the foregoing, the $220,000 threshold set forth in the previous sentence shall automatically increase to reflect the amount set forth in subdivision (b) of Public Contract Code section 22032. I. “Public project” shall have the meaning given that term by California Public Contract Code Section 22022. J. “Small public project” means a “public project,” as defined in subdivision (c) of Public Contract Code section 22002, with a total cost of less than $220,000. Notwithstanding the foregoing, the $220,000 threshold set forth in the previous sentence shall automatically increase to reflect the amount set forth in subdivision (b) of Public Contract Code section 22032. K. “Small contract” means a contract for the purchase of general services or supplies and equipment with a total cost of between $10,000 and $100,000, inclusive. Notwithstanding the foregoing, the $100,000 threshold set forth in the previous sentence shall automatically increase if the amount set forth for the “formal level” of contracting in Section 100.2 of the State Contracting Manual or its successor is increased. L. “Supplies and equipment” means and includes tangible goods, supplies, equipment, vehicles, printing, materials, and furniture and furnishings purchased on behalf of the city. M. “Very small contract” means a contract for the purchase of general services or supplies and equipment with a total cost of less than $10,000. N. “Very small public project” means a “public project,” as defined in subdivision (a) of Public Contract Code section 22002, with a total cost of $75,000 or less. Notwithstanding the foregoing, the $75,000 threshold set forth in the previous sentence shall automatically increase to reflect the amount set forth in subdivision (a) of Public Contract Code section 22032. Section 2. Amendment to Section 2.36.050. Section 2.36.050 is amended to read as follows: Purchasing Agent authority for contracts and purchases—Small contracts. A. The Purchasing Agent is authorized to enter into a small contract on behalf of the city and approve a purchase by the city without the prior approval of the City Council, so long as the contract or purchase satisfies the following conditions: 1. The monies have been appropriated; and 592 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 4 of 7 2. The contract or purchase is for consultant or professional services, general services, or supplies and equipment. B. In an emergency the Purchasing Agent may authorize the expenditure of any unencumbered monies in the emergency reserve fund, notwithstanding the fact that such monies may not have been appropriated for such purpose, to the extent that said emergency funds have not been appropriated or are otherwise unavailable therefor. Section 3. Amendment to Section 2.36.070. Section 2.36.070 is amended to read as follows: Contracts and purchases of general services, supplies and equipment—Very small contracts. For very small contracts, informal quotations should be obtained, but are not required. Comparative pricing is expected to secure the lowest price. Negotiated pricing is allowed and departments are strongly encouraged to solicit quotations from city-based businesses. Section 4. Amendment to Section 2.36.080. Section 2.36.080 is amended to read as follows: Contracts and purchases of general services, supplies, and equipment—Small contracts. A. The award of any small contract shall, whenever possible, be based on at least three 3) quotations. For small contracts of less than fifty thousand dollars ($50,000), the quotations may be verbal or written. For small contracts greater than fifty thousand dollars ($50,000), the quotations shall be in writing, which writings may include facsimile and electronic mail transmissions. Quotations with the required documentation shall be submitted to the Finance Department for approval by the Purchasing Agent. Negotiated pricing is allowed and departments are strongly encouraged to solicit quotations from city-based businesses. The award of any small contract shall be consistent with the factors stated in Section 2.36.060 and shall be made from the vendor that submits the lowest total cost. B. At the discretion of the Purchasing Agent, the competitive bidding procedure set forth in Section 2.36.090 may be used for any acquisition of general services, supplies and equipment, regardless of the value. Section 5. Amendment to Section 2.36.090. Section 2.36.090 is amended to read as follows: City Council authority for contracts and purchases—Large contracts—Competitive bidding. City Council approval shall be required to authorize large contracts. Awards of large contracts shall comply with the competitive bidding procedure set forth in this section, except as provided in Section 2.36.100. Bids should be obtained from one 1) or more vendors located within the city whenever possible. 593 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 5 of 7 A. Notices inviting bids shall include a general description of the services and/or articles to be purchased or sold, where bid blanks and specifications may be obtained, the time and place for bid openings, and whether a bid deposit or bond and a faithful performance bond will be required. B. Notices inviting bids shall be posted in at least three (3) public places in the city that have been designated by ordinance as the place for posting public notices, at least fourteen (14) calendar days before the date of opening the bids. C. The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder’s list and may advertise the notice inviting bids in applicable publications and websites readily accessible to the public. D. When deemed necessary by the Purchasing Agent or City Council, any bidder may be required to submit a bid deposit or bond in an amount determined by the Purchasing Agent or City Council. A successful bidder (and his surety, if a bond is furnished) shall be liable for any damages upon the bidder’s failure to enter into a contract with the city or upon the bidder’s failure to perform in accordance with the tenor of his or her bid. E. When deemed necessary by the Purchasing Agent or City Council, any person or entity entering into a contract with the city may be required to furnish a faithful performance deposit or bond in an amount determined by the Purchasing Agent or City Council. F. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. G. At its discretion, the City Council may reject all bids presented and re -advertise for bids. H. Contracts shall be awarded by the City Council to the lowest responsive, responsible bidder, except as otherwise provided herein. I. If two (2) or more bids received from responsible bidders are for the same total amount or unit price, quality and service being equal, preference shall be given to the local vendor, or the City Council may accept the lowest bid made by negotiation with the tie bidders and the Purchasing Agent at the time of the bid opening. Section 6. Amendment to Subdivision A.1. of Section 2.36.100. Subdivision A.1. of Section 2.36.100 is amended to read as follows: 1. Large contracts involving the acquisition of consultant or professional services will require City Council approval. Section 7. Amendment to Section 2.36.120. Section 2.36.120 is amended to read as follows: Purchase orders. 594 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 6 of 7 Purchases for small contracts shall be documented by purchase orders prepared by the Purchasing Agent in accordance with adopted administrative policies. Section 8. Amendment to Section 2.36.160. Section 2.36.160 is amended to read as follows: Public projects. Public projects shall follow the purchasing procedures as set forth in Sections 22030– 22045 of the Public Contract Code. A. Contracts for very small public projects may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order (Reference: Public Contract Code Section 22032). B. Contracts for small public projects may be let to contract by the informal procedures set forth in Sections 22030–22045 of the Public Contract Code. 1. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. 2. Where a public project is to be performed, a notice inviting informal bids shall be mailed, faxed, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with this section, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified; provided, however: a. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission. b. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. 3. All mailing of notices to contractors and construction journals pursuant to this section shall be completed not less than fifteen (15) calendar days before bids are due. 4. The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and shall state the time and place for the submission of bids. 5. The Purchasing Agent is authorized to award informal contracts pursuant to this section. C. Contracts for large public projects shall be authorized by City Council and shall comply with the competitive bidding procedures set forth in Section 2.36.090. Contracts 595 Ord. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 7 of 7 for very small and small public projects may be approved by the Purchasing Agent. Reference: Public Contract Code section 22034.) Section 9. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following its final adoption. Section 10. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED this __th day of ________ 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 596 2.36.020 Definitions. For the purposes of this chapter, the words set out in this section shall have the following meanings: A. “Consultant or professional services” means the services rendered by architects, attorneys, engineers, doctors, financial consultants, planning or environmental consultants, investment advisors, bank or trustee officers, and other professional or specialized consultants. B. “Contract” means any agreement to do or not do a certain thing. For the purposes of this chapter, “contract” and “agreement” are synonymous. The term contract” includes, but is not limited to, a purchase order; a contract for services; an addendum or change order, which means a change or addendum to an executed contract; a letter of agreement; and a memorandum of understanding. C. “Force account” is a term used by the Uniform Construction Cost Accounting Procedures meaning an account which is used to account for work performed on public projects using internal resources, including but not limited to labor, equipment, materials, supplies, and subcontracts of the public agency. D. “Emergency” means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. E. “General services” means and includes any work performed or services rendered by an independent contractor, with or without the furnishing of materials, including, but not limited to, the following: 1. Maintenance or nonstructural repair of city buildings, structures or improvements which does not require engineering plans, specifications or design, including, but not limited to, unscheduled replacement of broken window panes, fire extinguisher maintenance, minor roof repairs, plumbing, elevator maintenance, custodial services and pest control, etc.; 2. Repair, modification and maintenance of city equipment and software; 3. Cleaning, analysis, testing, moving, removal or disposal (other than by sale) of city supplies and equipment; 4. Replanting, care or maintenance of public grounds, including, but not limited to, maintenance of trees, shrubbery, flowers, and lawns; 5. Providing temporary personnel services; Attachment 2 597 6. Providing other miscellaneous services to facilitate city operations; 7. Performing repair, demolition or other work required to abate nuisances under this code; 8. Licensing software services; 9. Leasing or rental of equipment (personal property) for use by the city; 10. Maintenance of equipment owned or leased by the city. General services” does not include consultant or professional services, or work associated with a public project. F. “Goods of a technical nature” means hardware, software, or communications equipment, or any item that is substantially similar to the foregoing as determined by the Purchasing Agent. G. “Large contract” means a contract for the purchase of general services or supplies and equipment with a total cost of more than $100,000. Notwithstanding the foregoing, the $100,000 threshold set forth in the previous sentence shall automatically increase if the amount set forth for the “formal level” of contracting in Section 100.2 of the State Contracting Manual or its successo r is increased. H. “Large public project” means a “public project,” as defined in subdivision (c) of Public Contract Code section 22002, with a total cost of $220,000 or more. Notwithstanding the foregoing, the $220,000 threshold set forth in the previous sentence shall automatically increase to reflect the amount set forth in subdivision b) of Public Contract Code section 22032. I. “Public project” shall have the meaning given that term by California Public Contract Code Section 20161 22022and the Uniform Construction Cost Accounting Procedures (“UCCAP”) set forth in the Uniform Public Construction Cost Account Act (“The Act”) and referenced in Section 2.36.160. J. “Small public project” means a “public project,” as defined in subdivision (c) of Public Contract Code section 22002, with a total cost of less than $220,000. Notwithstanding the foregoing, the $220,000 threshold set forth in the previous sentence shall automatically increase to reflect the amount set forth in subdivision b) of Public Contract Code section 22032. K. “Small contract” means a contract for the purchase of general services or supplies and equipment with a total cost of between $10,000 and $100,000, inclusive. Notwithstanding the foregoing, the $100,000 threshold set forth in the 598 previous sentence shall automatically increase if the amount set forth for the formal level” of contracting in Section 100.2 of the State Contracting Manual or its successor is increased. LH. “Supplies and equipment” means and includes tangible goods, supplies, equipment, vehicles, printing, materials, and furniture and furnishings purchased on behalf of the city. M. “Very small contract” means a contract for the purchase of general services or supplies and equipment with a total cost of less than $10,000. N. “Very small public project” means a “public project,” as defined in subdivision (a) of Public Contract Code section 22002, with a total cost of $75,000 or less. Notwithstanding the foregoing, the $75,000 threshold set forth in the previous sentence shall automatically increase to reflect the amount set forth in subdivision (a) of Public Contract Code section 22032. 2.36.050 Purchasing Agent authority for contracts and purchases—Less than forty-five thousand dollars ($45,000) Small contracts. A. With the exception of public projects as defined in Section 2.36.020, tThe Purchasing Agent is authorized to enter into a small contract on behalf of the city and approve a purchase by the city without the prior approval of the City Council, so long as the contract or purchase satisfies the following conditions: 1. The total cost is less than forty-five thousand dollars ($45,000); 2. The monies have been appropriated; and 32. The contract or purchase is for consultant or professional services, general services, or supplies and equipment. B. In an emergency the Purchasing Agent may authorize the expenditure of any unencumbered monies in the emergency reserve fund, notwithstanding the fact that such monies may not have been appropriated for such purpose, to the extent that said emergency funds have not been appropriated or are otherwise unavailable therefor. 2.36.070 Contracts and purchases of general services, supplies and equipment—Less than five thousand dollars ($5,000)Very small contracts. For very small contracts purchases of general services or supplies and equipment of less than five thousand dollars ($5,000), informal quotations should be obtained, but are not required. Comparative pricing is expected to secure the 599 lowest price. Negotiated pricing is allowed and departments are strongly encouraged to solicit quotations from city-based businesses. 2.36.080 Contracts and purchases of general services, supplies, and equipment—Greater than or equal to five thousand dollars ($5,000) and less than forty-five thousand dollars ($45,000)Small contracts. A. Purchases of general services, supplies and equipment greater than or equal to five thousand dollars ($5,000) and less than forty-five thousand dollars 45,000) The award of any small contract shall, whenever possible, be based on at least three (3) quotations. For purchases greater than or equal to five thousand dollars ($5,000) and small contracts of less than ten fifty thousand dollars ($150,000), the quotations may be verbal or written. For small contracts purchases greater than or equal to ten fifty thousand dollars ($150,000) and less than forty-five thousand dollars ($45,000), the quotations shall be in writing, which writings may include facsimile and electronic mail transmissions. Quotations with the required documentation shall be submitted to the Finance Department for approval by the Purchasing Agent. Negotiated pricing is allowed and departments are strongly encouraged to solicit quotations from city-based businesses. The purchase of any general services, supplies and equipment greater than or equal to five thousand dollars ($5,000) and less than forty-five thousand dollars ($45,000) The award of any small contract shall be consistent with the factors stated in Section 2.36.060 and shall be made from the vendor that submits the lowest total cost. B. At the discretion of the Purchasing Agent, the competitive bidding procedure set forth in Section 2.36.090 may be used for any acquisition of general services, supplies and equipment, regardless of the value. 2.36.090 City Council authority for contracts and purchases—Greater than or equal to forty-five thousand dollars ($45,000)Large contracts—Competitive bidding. City Council approval shall be required to authorize the large contracts for or purchase of any consultant or professional services, general services or supplies and equipment with a cost greater than or equal to forty-five thousand dollars 45,000). Awards of large contracts City Council authorization for purchases of general services and supplies and equipment with a cost greater than or equal to forty- five thousand dollars ($45,000) shall comply with the competitive bidding procedure set forth in this section, except as provided in Section 2.36.100. Bids 600 should be obtained from one (1) or more vendors located within the city whenever possible. A. Notices inviting bids shall include a general description of the services and/or articles to be purchased or sold, where bid blanks and specifications may be obtained, the time and place for bid openings, and whether a bid deposit or bond and a faithful performance bond will be required. B. Notices inviting bids shall be posted in at least three (3) public places in the city that have been designated by ordinance as the place for posting public notices, at least fourteen (14) calendar days before the date of opening the bids. C. The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder’s list and may advertise the notice inviting bids in applicable publications and websites readily accessible to the public. D. When deemed necessary by the Purchasing Agent or City Council, any bidder may be required to submit a bid deposit or bond in an amount determined by the Purchasing Agent or City Council. A successful bidder (and his surety, if a bond is furnished) shall be liable for any damages upon the bidder’s failure to enter into a contract with the city or upon the bidder’s failure to perform in accordance with the tenor of his or her bid. E. When deemed necessary by the Purchasing Agent or City Council, any person or entity entering into a contract with the city may be required to furnish a faithful performance deposit or bond in an amount determined by the Purchasing Agent or City Council. F. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. G. At its discretion, the City Council may reject all bids presented and re- advertise for bids. H. Contracts shall be awarded by the City Council to the lowest responsive, responsible bidder, except as otherwise provided herein. I. If two (2) or more bids received from responsible bidders are for the same total amount or unit price, quality and service being equal, preference shall be given to the local vendor, or the City Council may accept the lowest bid made by negotiation with the tie bidders and the Purchasing Agent at the time of the bid opening. 601 2.36.100 Exceptions to competitive bidding. A. Contracts or purchases involving the acquisition of consultant or professional services are exempt from competitive bidding; however, the procurement of such services shall be subject to the following: 1. Contracts or purchases Large contracts involving the acquisition of consultant or professional services greater than or equal to forty-five thousand dollars ($45,000) will require City Council approval. 2.36.120 Purchase orders. Purchases greater than or equal to five thousand dollars ($5,000) for small contracts shall be documented by purchase orders prepared by the Purchasing Agent in accordance with adopted administrative policies. 2.36.160 Public projects. Public projects as defined by the Uniform Public Construction Cost Accounting Act (Section 22000 et seq. of the California Public Contract Code) shall follow the purchasing procedures as set forth in Sections 220320–22045 et seq. of the Public Contract Code. A. The purchase or contract for public projects less than forty-five thousand dollars ($45,000)Contracts for very small public projects may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order (Reference: Public Contract Code Section 22032). B. The purchase or contract for public projects less than one hundred thousand dollars ($100,000)Contracts for small public projects may be let to contract by the informal procedures as set forth in Sections 220302 et seq.–22045 of the Public Contract Code. 1. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. 2. Where a public project is to be performed, a notice inviting informal bids shall be mailed, faxed, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with this section, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public 602 Contract Code. Additional contractors and/or construction trade journals may be notified; provided, however: a. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission. b. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. 3. All mailing of notices to contractors and construction journals pursuant to this section shall be completed not less than fourteen (14) fifteen (15) calendar days before bids are due. 4. The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and shall state the time and place for the submission of bids. 5. The Purchasing Agent is authorized to award informal contracts pursuant to this section. C. The purchase or contract for public projects greater than or equal to one hundred thousand dollars ($100,000)Contracts for large public projects shall be authorized by City Council and shall comply with the competitive bidding procedures set forth in Section 2.36.090. Contracts for very small and small public projects may be approved by the Purchasing Agent. (Reference: Public Contract Code section 22034.) 603 Introduction of an Ordinance Amending Chapter 2.36 (Contracts and Purchasing) of the Dublin Municipal Code October 7, 2025 Background In April of 2025, Staff conducted a review to determine if the City’s Purchasing Authority thresholds remain current and align with best practices. 1983 –Ordinance Adopted (Ord.16-83) •Establishing Procedures for the Purchase of Goods and Services •City Manager: Purchases < $5,000 •Purchases > $5,000 City Council approval and formal bidding 2000 –First Amendment (Ord. 4-00) •Increased City Manager authority to < $20,000 •Updated bidding requirements Background, 2 2012 –Comprehensive Update (Ord. 12-12) •City Manager authority raised to < $45,000 •City "opted in" to California Uniform Public Construction Cost Accounting Act (CUPCCAA) •Public Works threshold increased to < $100,000 2025 –Proposed Amendment •Evaluate thresholds for inflation and operational challenges •Align with state law, local best practices, and CUPCCAA updates Purchasing in the City of Dublin is designed to ensure fairness, transparency, accountability, and compliance with state and local laws. Purchasing Authority and Acquisition Methods Authority vs. Methods •Purchasing authority –who can approve •Acquisition methods –how contacts are awarded High Risk vs. Low Risk Purchases •High Risk -Large construction contracts, require formal bidding and City Council approval •Low Risk –Routine goods/services (e.g, printing vendor), can be approved by City Manager Purchasing Authority and Acquisition Methods, 2 Two Primary Purchasing Categories •General Services –supplies, equipment, consulting, professional services •Public Works –construction, alteration, repair, or improvement of public structures, buildings, roads, etc. •Governed by the Public Contract Code (PCC) External Guidance and Peer Agencies State and Professional Guidance •California Department of General Services –State Contracting Manual •California Association of Public Procurement Officials (CAPPO) –survey data and best practices •California Uniform Public Construction Cost Accounting Act (CUPCCAA) –updated by AB 2192 (2025)raised bidding threshold to $220,000 (public projects) Dublin’s Current Limits (since 2012) •$45,000 for goods and services •$100,000 for public projects External Guidance and Peer Agencies, 2 Peer Agency Comparison (18 Cities or Agencies): The average purchasing authority threshold for a City Manager: $50,000 26%$50,000 29% $75,000 12%$75,000 12% $100,000 37%$100,000 12% $200,000+25%$200,000+53% City of Dublin (Current)$45,000 City of Dublin (Current)$100,000 -Marin Area Rail Transit District Neighboring Cities Purchasing Authority City of Dublin Contracts Over the past three fiscal years, City Council has reviewed 178 contracts: •153 goods and services contracts •25 public project contracts Under the new threshold recommendation: •39 contracts (22%) would fall under the new City Manager approval o ~12 staff hours per contract x $137.90 fully loaded hourly rate = Approximately $1,700 per contract o 39 contracts x $1,700 per contract =Approximately $65,000 Savings over the past three fiscal years City of Dublin Contracts, 2 Operational Challenges •Inflation and rising cost of construction materials and labor •Inability to act in real-time Proposed Recommendation •Real-time efficiency •Flexibility and favorable pricing Police Vehicle Costs vs. Purchasing Authority $27,900 $29,860 $54,175 $57,394 $- $25,000 $50,000 $75,000 $100,000 $125,000 2012 Sedan 2025 Malibu 2025 Intercepter 2025 Tahoe Vehicles Current Authority Recommended Authority Recommendation Waive the reading and introduce the Amending Chapter 2.36 (Contracts and Purchasing) of the Dublin Municipal Code. •Increase the formal bidding and City Manager purchasing authority limits to current State limits. •Tie the City’s purchasing authority thresholds to the State.