HomeMy WebLinkAbout2026-03-10; City Council; CS-510; AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING SECTIONS 3.28.040, 3.28.050, 3.28.060, 3.28.070, 3.28.080 AND 3.28.120 OF CARLSBAD MUN...Exhibit 1
ORDINANCE NO. CS-510.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AMENDING SECTIONS 3.28.040, 3.28.050, 3.28.060, 3.28.070,
3.28.080 AND 3.28.120 OF CARLSBAD MUNICIPAL CODE CHAPTER 3.28 –
PURCHASING TO STREAMLINE PROCUREMENT, INCLUDING BY INCREASING
THE CITY MANAGER’S AWARDING AUTHORITY FOR THE PROCUREMENT OF
GOODS AND SERVICES TO $250,000
WHEREAS, Chapter 3.28 of the Carlsbad Municipal Code, the City of Carlsbad’s Purchasing
Ordinance, details the city’s procurement processes, including specifying the City Manager’s awarding
authority for the procurement of goods, services, and professionals services at $100,000.00 or less per
agreement year; and
WHEREAS, the city’s Internal Audit Manager evaluated the city’s procurement operations,
practices and internal controls and issued report 2026-01 to the City Council on February 24, 2026; and
WHEREAS, the internal audit report included a recommendation for the City Council to consider
increasing the City Manager’s approval authority to at least $150,000, and to adjust this figure
periodically for inflation; and
WHEREAS, based on city managers’ awarding authorities from comparable jurisdictions ranging
from $25,000 to $250,000, it is recommended that the city’s awarding authority for the City Manager
be increased to $250,000 to reasonably reduce costs and maximize efficiency; and
WHEREAS, the internal audit report also noted that, while the city’s procurement and
contracting functions are operating effectively, there are opportunities to enhance efficiency,
effectiveness, and oversight; and
WHEREAS, to streamline and increase procurement efficiency, it is recommended that the
Purchasing Ordinance be amended to clarify the current process of procuring capital outlay items
approved by the City Council in the city’s budget, have the City Council approve construction plans and
specifications only once instead of twice, and clarify the city’s current emergency procurement process.
NOW, THEREFORE, the City Council of the City of Carlsbad, California, ordains as follows:
SECTION I. The above recitations are true and correct.
SECTION II. The ordinance is not a “project” as defined by California Environmental Quality
Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require
environmental review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because an
ordinance to streamline procurement processes is an organizational or administrative government
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activity that does not involve any commitment to any specific project which may result in a potentially
significant physical impact on the environment. Any subsequent action or direction stemming from the
proposed action may require preparation of an environmental document in accordance with CEQA or
the CEQA Guidelines.
SECTION III. Carlsbad Municipal Code, Title 3, Chapter 3.28, Section 3.28.040, is amended to
read as follows:
3.28.040 Procurement and disposition responsibilities.
A. End User. The end user shall:
1. Identify its procurement needs and the availability of funding;
2. Submit to the purchasing officer specifications for the required goods, services,
professional services, and/or construction projects;
3. Participate in the evaluation of bids and proposals; and
4. Inspect goods delivered, services performed, professional services rendered,
and/or construction projects to determine conformity with the requirements set
forth in the bid or proposal documents and with contractual obligations, and
authorize payments for conforming goods, services, professional services, and/ or
construction projects.
B. Purchasing Officer. The purchasing officer shall be responsible for the procurement of
goods, services, professional services, and/or construction projects for the city in
accordance with the provisions of this chapter. Except as provided for herein, no
procurement shall be made contrary to the provisions of this chapter. Any agreement
or contract for the purchase of goods, services, professional services, and/or
construction projects made contrary to the provisions of this chapter shall be void and
any claim or demand against the city based thereon shall be invalid. The purchasing
officer shall:
1. Prepare and recommend to the City Manager operational procedures and forms for
the procurement of goods, services, professional services, and/or construction
projects in cooperation with the end users and for the disposal of surplus personal
property;
2. Procure or supervise the procurement of all goods, services, professional services,
and/or construction projects needed in coordination with end users;
3. Process the contracts awarded administratively and/or by City Council;
4. Whenever possible, establish standardized specifications and consolidation of
requirements for goods and/or services required by two or more end users; and
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5. Sell or otherwise dispose of surplus personal property, and lost and unclaimed
property held by the city's police department.
C. City Manager. The City Manager shall be the awarding authority for:
1. All procurement of goods for which the cost to the city is $250,000.00 or less;
2. All contracts for services and professional services of $250,000.00 or less per
agreement year;
3. All construction project contracts less than the formal bidding threshold
established by the UPCCAA;
4. Any change order, amendment or extension to an existing contract which when
added to the contract amount, including prior change orders, is within the
authority granted in subsections (C)(1) through (C)(3) above;
5. Any construction project change order up to the dollar amount equal to the
contingency amount set when the underlying contract was awarded;
6. Any construction project change order in which the total amount of the original
contract and all amendments and change orders are less than the formal bidding
threshold established by the UPCCAA;
7. Any change order or amendment to a non-construction project contract awarded
by the City Council in an amount up to 25% of the original contract amount,
including the total of all amendments and change orders, up to a limit of
$250,000.00 per agreement year;
8. Any extensions to a contract awarded by the City Council as delegated in the
contract or the approving resolution;
9. The City Manager shall approve alternate procurement methods, if appropriate,
for use on an experimental basis, and recommend to the City Council additions,
deletions or modifications to the city's procurement methods;
10. The City Manager shall have the authority to delegate the awarding of contracts,
amendments and change orders for goods, services, professional services, and/or
construction projects as set forth in this chapter by memorandum or by
administrative order;
11. Each month the City Manager shall send to the City Council a report of all contracts
that have been awarded over the formal bidding requirement.
12. The City Manager awarding authority shall be reviewed annually and adjusted in
response to the San Diego—All Urban Consumers Consumer Price Index. The
purchasing officer shall calculate the effect of the cumulative change in the index
to $250,000.00 beginning in fiscal year 2027-28. Adjustment to the awarding
authority limit will be made in $10,000.00 increments whenever the calculated
value exceeds a previously set awarding authority limit by more than $5,000.00.
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The City Manager awarding authority limit adjustment will be made effective at
the beginning of a fiscal year by memorandum from the purchasing officer.
D. City Council. The City Council shall be the awarding authority for:
1. Any procurement of goods, services and/or professional services costing more than
$250,000.00 per agreement year;
2. Any construction project contract at or above the formal bidding threshold
established by the UPCCAA;
3. Any change order or amendment that exceeds the City Manager's authority.
E. City Attorney. The City Attorney shall be the awarding authority for the procurement of
legal services, regardless of the dollar amount, up to the amount of appropriations
available.
SECTION IV. Carlsbad Municipal Code, Title 3, Chapter 3.28, Section 3.28.050, is amended to
read as follows:
3.28.050 Procurement of goods.
A. Small Procurements. Procurements of goods where the total cost of goods
are $30,000.00 or less in any one transaction, shall be made using simplified and cost
effective operational procedures and forms approved by the City Manager. The use of
formal or informal bids is not required, but is considered the best management
practice. The small procurement limit shall be reviewed and adjusted annually per the
procedures set forth in subsection (C)(1) of this section. Procurement requirements
shall not be divided so as to constitute several small procurements under this
subsection.
B. Informal Bidding for Goods.
1. Informal bidding procedure shall be utilized:
a. When the anticipated cost of the goods to be purchased is less than the dollar
amount established for formal bidding for goods in subsection (C)(1) herein;
or
b. When no bids are received pursuant to the formal bid procedures
established; or
c. When all bids received substantially exceed the city's estimated costs, as
determined by the purchasing officer through the formal bidding procedure.
d. The City Council may designate types or classes of procurements costing
more than the dollar amount established for formal bidding in subsection
(C)(1) herein; which may be purchased through the use of informal bidding
procedures whenever the City Council finds that use of the informal bidding
procedure is advantageous to the city consistent with applicable law.
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2. The informal bidding procedure shall be as follows:
a. Bids shall be obtained by written or oral request.
b. When possible, a minimum of three bidders should be solicited.
c. Best value criteria, if used, must be determined before bids/quotes are
published or distributed to potential bidders/suppliers.
d. Responses shall be in writing, and may be transmitted by facsimile, by mail,
electronically over the Internet, or by any other means of delivery as
described in the bid documents.
e. The award shall be based on best value to the city or the lowest bid submitted
by a responsive bidder, as determined by the purchasing officer, and shall be
awarded by the City Manager.
C. Formal Bidding for Goods.
1. Formal bidding procedures shall be utilized when the anticipated cost of the goods
is greater than $30,000.00 per agreement year. The bid limit shall be reviewed
annually and adjusted in response to the San Diego—All Urban Consumers
Consumer Price Index. The purchasing officer shall calculate the effect of the
cumulative change in the index to $30,000.00 beginning in fiscal year 2009.
Adjustment to the bid limit will be made in $5,000.00 increments whenever the
calculated value exceeds a previously set bid limit by more than $2,500.00. The bid
limit adjustment will be made effective at the beginning of a fiscal year by
memorandum from the purchasing officer.
2. Procurement requirements shall not be divided so as to avoid the formal bidding
requirements.
3. The formal bidding procedures shall be as follows:
a. The purchasing officer, or designee, shall issue a notice inviting bids using one
or more methods designed to provide reasonable public notice in a manner
which will permit current information to be disseminated widely. The notice
shall include:
i. Instruction to bidders;
ii. Specifications describing the required goods;
iii. Bid forms and schedules;
iv. Any required bond forms;
v. General contract provisions;
vi. The time on or before which bids will be received;
vii. Where and with whom bids shall be filed;
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viii. The date, time and place where and when bids will be publicly
opened;
ix. Statement of bidders exceptions.
b. The sealed formal bids shall be received by the purchasing officer, or
designee, at a time, date and place designated in the bid documents. Formal
bids, timely received, will be publicly opened by the purchasing officer, or
designee, and the aggregate bid pricing shall be read aloud.
c. Any person or entity with whom the city has contracted to prepare or assist
in the preparation of bid or proposal documents is ineligible to submit a bid
or proposal for the provision of the goods so specified in the notice inviting
bids or proposals.
d. Formal bids received after the deadline for receipt of bids shall not be
accepted by the city and shall be returned to the bidder unopened, unless
opening is necessary for identification purposes. The purchasing officer, or
designee, shall submit written notification to the bidder whose bid was
received after the deadline stating what the deadline was, when the bid was
actually received and that the bid is being returned because it was received
after the deadline.
4. If no bids are received or if no bids meet the requirements as specified in the
solicitation documents, the purchasing officer may reissue the solicitation using
the informal bidding procedures, negotiate a contract based upon the solicitation,
without further complying with this section or the city may cease the
procurement.
5. If two or more bids are received with the same total amount or unit price, quality
and service being equal, and if the public interest will not permit the delay of re-
advertising for bids, the City Council, or the City Manager if the procurement is
under $250,000.00, may exercise sound discretion and accept the bid it chooses.
6. In considering formal bids for goods, the awarding authority may waive minor
defects or irregularities, provided that the irregularities do not affect the bid
amount or give a particular bidder an advantage over others.
7. All bids shall be deemed rejected if no City Council or City Manager action is taken
on the bids or proposals within 90 days after the bids have been received and
opened, unless bidders agree to extend a bid's effective date upon request by the
city.
D. Additional Responsibilities and Authorities.
1. The city shall have the authority to require a performance bond in such amount as
it finds reasonably necessary to protect the best interests of the city consistent
with applicable law. If the city requires a performance bond, the amount of the
bond shall be described in the notice inviting bids and bid proposal documents.
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2. All contracts may be awarded based on the best value for the city. Best value
criteria, if used, must be determined before bids/quotes are published or
distributed to potential bidders/suppliers.
3. The City Manager shall be the awarding authority for procurement of goods for
which the cost to the city is $250,000.00 per agreement year or less, or for capital
outlay items within the amount approved by the City Council in the budget
process.
4. The City Council shall be the awarding authority for procurement of goods for
which the cost to the city is more than $250,000.00 per agreement year and have
not been previously approved as capital outlay items in the budget process or
exceed the approved budget amount for capital outlay items.
E. The city's goods procurement practice prohibits unlawful activity, including, but not
limited to, rebates, kickbacks, or other unlawful consideration. No city employee shall
participate in the selection process if that employee has a relationship with a person or
business entity seeking a contract with the city that would subject that employee to the
prohibition of Government Code Section 87100. (Conflicts of Interest).
SECTION V. Carlsbad Municipal Code, Title 3, Chapter 3.28, Section 3.28.060, is amended to
read as follows:
3.28.060 Procurement of professional services and services.
A. Professional Services Procurement.
1. Request for proposals should be used when professional services are needed. The
selection of professional services for, private architectural, landscape
architectural, engineering, environmental, land surveying or construction project
management firms should be based on the professional qualifications necessary
for the satisfactory performance of the professional services required, on
demonstrated competence, and on a fair and reasonable price consistent with
Government Code Section 4526.
2. Procurements of professional services where the total cost of services are
$30,000.00 or less per agreement year shall be made using simplified and cost
effective operational procedures and forms approved by the City Manager. If the
cost of needed professional services is expected to exceed $30,000.00 per
agreement year, at least three proposals should be solicited for the professional
service needed whenever possible. The purchasing officer may waive the
requirements for solicitation of multiple proposals if only one individual or firm
can reasonably provide the professional services, and it is in the best interest of
the city to waive the requirement.
B. Small Procurements of Services. Procurements of services where the total cost of
services are $30,000.00 or less in any one transaction, shall be made using simplified
and cost effective operational procedures approved by the City Manager and forms
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approved by the City Manager. The use of formal or informal bids is not required, but
is considered the best management practice. The small procurement limit shall be
reviewed and adjusted annually per the procedures set forth in Section 3.28.050(C)(1).
Procurement of services requirements shall not be divided so as to constitute several
small procurements under this subsection.
C. Informal Bidding for Services.
1. Informal bidding procedure, as set forth in Section 3.28.050(B)(2) may be utilized:
a. When no bids are received pursuant to the formal bid procedures
established; or
b. The City Council may designate types or classes of procurements costing more
than the dollar amount established for formal bidding in subsection (D)(1)
herein; which may be purchased through the use of informal bidding
procedures whenever the City Council finds that use of the informal bidding
procedure is advantageous to the city consistent with applicable law.
D. Formal Bidding for Services.
1. Formal bidding procedures shall be utilized when the anticipated cost of the
services is greater than $30,000.00 per agreement year. The bid limit shall be
reviewed annually and adjusted in response to the San Diego—All Urban
Consumers Consumer Price Index. The purchasing officer shall calculate the effect
of the cumulative change in the index to $30,000.00 beginning in fiscal year 2009.
Adjustment to the bid limit will be made in $5,000 increments whenever the
calculated value exceeds a previously set bid limit by more than
$2,500.00. The bid limit adjustment will be made effective at the beginning of a
fiscal year by memorandum from the purchasing officer.
2. Procurement requirements shall not be divided so as to avoid the formal bidding
requirements.
3. The formal bidding procedures and requirements shall be as set forth in Section
3.28.050(C) and (D).
4. The City Manager shall be the awarding authority for procurement of services and
professional services for which the cost to the city is $250,000.00 or less per
agreement year.
5. The City Council shall be the awarding authority for procurement of services and
professional services for which the cost to the city is more than
$250,000.00 per agreement year.
E. The city's services and professional services procurement practice prohibits unlawful
activity including, but not limited to, rebates, kickbacks, or other unlawful
consideration. No city employee shall participate in the selection process if that
employee has a relationship with a person or business entity seeking a contract with
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the city that would subject that employee to the prohibition of Government Code
Section 87100. (Conflicts of Interest).
SECTION VI. Carlsbad Municipal Code, Title 2, Chapter 3.28, Section 3.28.070, is amended to
read as follows:
3.28.070 Competitive negotiations for goods, services, and professional services.
A. The purchasing officer may authorize the solicitation of services and/or professional
services other than those listed in Section 3.28.060, and the purchase of highly
specialized goods by competitive negotiations when:
1. The cost of the goods, services and/or professional services is greater than the
dollar amount established for formal bidding in Section 3.28.050(C)(1) and
Section 3.28.060(D)(1); and
2. The goods are such that suitable technical or performance specifications are not
readily available; or
3. The city is not able to develop descriptive specifications; or
4. Requesting proposals for the particular service or goods to be procured would be
more advantageous to the city.
B. Whenever possible, at least three proposals shall be received and the award will be
based on the proposal that is determined to be most advantageous to the city, taking
into consideration price and the evaluation criteria set forth in the request for
proposal. Competitive negotiations are not intended to be used for the purpose of
avoiding the bidding procedure set forth in this chapter.
C. The City Manager or designee shall award contracts for goods and/or services less
than $250,000.00 per agreement year.
D. The City Council shall award contracts for goods and/or services over $250,000.00 per
agreement year.
SECTION VII. Carlsbad Municipal Code, Title 3, Chapter 3.28, Section 3.28.080, is amended to
read as follows:
3.28.080 Construction projects.
Except where specifically exempted from such laws by ordinance of the City Council,
contracts for construction projects in the city shall be governed by applicable state laws
including the California Public Contract Code, Division 2, Part 1, and Division 2, Part 3, the
Local Agency Public Construction Act, which includes the adoption by the city of the
alternative provisions of the Uniform Public Construction Cost Accounting Act for use in the
city. Contracts for construction projects shall also be governed by the current edition of the
standard specifications for public works construction and the latest supplement thereto,
adopted by the Greenbook Committee of the Public Works Standards, Inc., except as
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otherwise provided by the City Council or the City Manager if the contract is within his or her
authority.
A. Construction projects less than the amount specified in Section 22032(a) of the
California Public Contract Code may be performed by city employees by force account,
by negotiated contract or by purchase order.
B. Construction projects less than the amount specified in Section 22032(b) of the
California Public Contract Code may be let to contract by informal procedures set forth
in this section.
C. Construction projects of more than the amount specified in Section 22032(c) of the
California Public Contract Code shall be let by formal bidding procedure.
D. It shall be unlawful to split or separate work or projects into smaller work orders on
projects for the purpose of evading the provisions of this chapter.
E. The City Council shall adopt plans and specifications for all construction projects that
are formally bid when the value exceeds the limits established by the UPCCAA.
F. The city Traffic Engineer, or another professional civil engineer licensed by the State of
California that is designated by City Council resolution, shall review and approve plans
and specifications for all traffic control devices included in construction projects not
adopted by City Council pursuant to subsection E of this section.
G. The city Director of Public Works, or another professional civil engineer licensed by the
State of California that is designated by City Council resolution, shall review and approve
plans and specifications for all construction projects not adopted by City Council
pursuant to subsection E of this section, except for plans and specifications reviewed
and approved pursuant to subsection F of this section.
H. The informal bidding for construction projects procedures shall include the following
procedures:
1. The purchasing officer or designee shall develop a list of qualified contractors
eligible to submit bids on informal contracts awarded by the city. The list shall be
organized in accordance with the license classifications of the contractor's state
license board.
2. The purchasing officer or designee shall mail notice inviting informal bids to all
contractors on the list of qualified contractors and construction trade journals not
less than 10 calendar days before bids are due.
3. The notice inviting informal bids shall describe the project in general terms, how to
obtain more detailed information about the project, the time, date and place for
the submission of bids, and whether or not the project will require the payment of
prevailing wages.
4. When the awarding authority deems feasible, bid documents may be transmitted
and/or received over the internet.
5. The awarding authority may in its sole discretion reject any or all bids presented
and waive any minor irregularity or informality in such bids. The contract shall be
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awarded to the lowest responsive, responsible bidder. If no bids are received
through the informal procedure, the project may be performed by city employees,
by force account or negotiated contract without further complying with this
section.
6. The City Manager or designee shall award all informal contracts.
I. The formal bidding procedures for construction projects shall include the following:
1. The purchasing officer, or delegate, shall mail notice inviting formal bids for
construction projects to construction trade journals at least 15 calendar days
before the bid opening date. The notice inviting formal bids shall be published at
least 14 calendar days before the bid opening date in a newspaper of general
circulation in the city. In addition to the newspaper, the notice inviting formal bids
may be advertised in any manner which will permit the information to be widely
disseminated.
2. When the awarding authority deems feasible, bid documents may be transmitted
and/or received over the internet.
3. The awarding authority may waive any minor irregularity or informality in such bids
or may, in its sole discretion, reject all bids presented.
4. The contract shall be awarded to the lowest responsive, responsible bidder.
5. If no bids are received through the formal procedure, the project may be
performed by city employees, by force account or negotiated contract without
further complying with this section.
6. The City Council shall award all formal contracts.
SECTION VIII. Carlsbad Municipal Code, Title 3, Chapter 3.28, Section 3.28.120 is amended to
read as follows:
3.28.120 Emergencies.
In cases of emergency, as determined by the City Council, including, but not limited to,
states of emergency defined in Government Code Section 8558, as may be amended from
time to time, when repair or replacements are necessary to permit the continued conduct
of the operation or services of a public agency or to avoid danger to life or property, the
City Manager may then proceed at once to replace or repair any public facility or
infrastructure and/or procure the necessary goods and/or services without adopting the
plans, specifications, or working details, or giving notice of bids to let contracts. Emergency
work may be completed by day labor under the direction of the City Manager, or by
contractor, or a combination of the two. The City Manager is delegated the power to
declare a public emergency subject to confirmation by the City Council, by a four-fifths
vote at its next regular meeting following the City Manager declaring a public emergency.
SECTION IX. SEVERABILITY: If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of this ordinance or any part of it is for any reason held to be unconstitutional, such
decision shall not affect the validity of the remaining portion of this ordinance or any part of it. The City
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Council of the City of Carlsbad declares that it would have passed each section, subsection, subdivision,
paragraph, sentence, clause or phrase of the ordinance, irrespective of the fact that any one or more
section, subsection, subdivision, paragraph, sentence, clause or phrases is declared unconstitutional.
EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City
Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary
of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general
circulation in the City of Carlsbad within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 24th day
of February, 2026, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 10th day of March, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
APPROVED AS TO FORM AND LEGALITY:
_________________________________
CINDIE K. McMAHON, City Attorney
_______________________________________
KEITH BLACKBURN, Mayor
_______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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