Over the past few years, the purchasing department has been reviewing and updating the City’s purchasing and contracting procedures to implement best practices, including the implementation of electronic bidding systems and cooperative bidding with other public agencies.  In addition, State and Federal regulations pertaining to emergency purchases, procurement and reimbursement for emergency expenditures during proclaimed disasters necessitates periodic update to the City’s purchasing regulations.

The attached ordinance amends Chapter 2.50 of the Garden Grove Municipal Code pertaining to the purchase of supplies and services as follows:

• Clarifies that bidding procedures are required for purchases of goods or services that will cost an excess of $25,000 (i.e., $25,001 or more).  Currently, bidding procedures are dispensed of for goods or services up to $24,999.
  
  
• Removes the provision to purchases that are urgently required.  This provision was redundant given the exception to bidding for the purchase of goods or services under $25,000.

• Adds a provision to specifically authorize cooperative purchases with other governmental agencies.
  
  
• Adds a provision to specifically authorize piggy-back purchases.
  
  
• Adds a provision exempting professional services contracts from lowest bid procedures where the law requires that the services be let primarily based on qualifications, such as is required by the Federal Brooks Act and the State’s Mini-Brooks Act (Govt. Code section 4526).
  
  
• Authorizes the City Council to waive bidding requirements on a case-by-case basis.
  
  
• Revises Section 2.50.070 pertaining to Emergency Purchases to authorize the City Manager to implement policies and procedures consistent with Federal and State regulations to make sure the City is able to receive reimbursement from Federal, State, and joint task force agencies for emergency expenditures during a  proclaimed disaster.

The attached ordinance further amends Chapter 2.52 of the Garden Grove Municipal Code pertaining to public works projects to fully implement the latest revisions to the bidding procedures adopted pursuant to the State’s Uniform Public Construction Cost Accounting Act, codified at Public Contract Code sections 22000 et seq. (the “Act”).  The City Council adopted resolution 8677-05 in 2005 adopting the bidding procedures of the Act.  The attached ordinance adjusts the formal and informal bidding limits for public construction projects and fully implements the informal bidding procedures under the Act, codifying them in a new section 2.52.030 of the Garden Grove Municipal Code. The informal bid procedures apply to projects estimated to cost up to $175,000 and still require that contracts be let to the lowest responsible bidder, but amends some of the publication requirements by relying more on contractor’s lists maintained by the City. The City has for a few years implemented an electronic online bidding system and has a robust database of registered contractors in the different trades and licenses required for the various public projects it requires.  The online bidding system provides the base from which informal bidding procedures can be fully implemented.

Finally, the attached ordinance authorizes the City Manager to approve or authorize the approval of change orders in construction agreements up to and including 10% of the contract amount.

None.

It is recommended that the City Council:

• Conduct the first reading of and introduce the attached Ordinance amending Chapters 2.50 and 2.52 of the Garden Grove Municipal Code pertaining to purchasing and contracting procedures.