In conjunction with the implementation of the Enterprise Resources Planning (ERP) system currently being implemented, the Finance Department is reviewing and updating its purchasing processes and procedures.   A revision to Chapter 2.52 of the municipal code has been identified to conform to changes in State law.

The City has adopted and follows the Uniform Public Construction Cost Accounting Act, Public Contracts Code 22000 et seq. (the Act).  The Act establishes various thresholds for formal bidding and informal bidding of public works construction contracts.  In 2018, AB 2249 amended the Act to increase the formal bidding thresholds from $175,000 to $200,000, and to allow public agencies to perform public works construction using its own employees for projects up to $60,000.00.  The prior threshold for force accounts was $45,000.00.  The attached ordinance revises the Municipal Code to increase public works contract bidding thresholds to conform to State law as amended by AB 2249 in 2018.

The attached Ordinance amends Sections 2.52.010 (Bid Procedures for Public Works Construction) and 2.52.030 (Informal Bid Procedures) of Chapter 2.52 of the Garden Grove Municipal Code pertaining to public works projects to fully implement the latest revisions to the bidding thresholds adopted pursuant to State law.  The ordinance adjusts the formal and informal bidding limits for public construction projects. The informal bid procedures apply to projects estimated to cost up to $200,000 (increased from $175,000) and increases the thresholds for public projects allowed to be performed by the City with its own employees to $60,000 (increased from $45,000).

Once the ordinance becomes effective, staff will complete revisions of an updated purchasing manual to be used in the administration of contract and purchasing procedures for all City departments in conjunction with Phase 1 of the ERP project.  It is anticipated that this updated purchasing manual will be presented to the City Council in June to be fully implemented beginning July 1, 2020, when Phase 1 of the ERP system is scheduled to become operative.

It is recommended that the City Council:

• Conduct the first reading of and introduce the attached Ordinance amending Chapter 2.52 of the Garden Grove Municipal Code increasing the bidding thresholds for public works contracts to conform to changes in State law.