Laguna Beach City Council has approved significant changes to its procurement thresholds, aiming to streamline purchasing processes and enhance efficiency for small dollar purchases. During the study session on September 23, 2025, council members discussed adjustments to four procurement levels, which will now allow for increased spending limits and simplified procedures.

The most notable change is the increase of Level 1 thresholds from $5,000 to $10,000. This adjustment means that purchases under $10,000 will only require one quote and will not necessitate a purchase order, facilitating quicker transactions for small purchases. Level 2 has also been modified, raising the threshold from $10,000 to $30,000, which will require three quotes and a purchase order.

Further changes include Level 3, which now covers purchases from $30,000 to $100,000, requiring a city contract and city manager approval. Level 4, which involves council approvals, has been raised from $75,000 to $100,000, allowing department heads and the city manager to approve expenditures below this threshold, provided they follow the necessary procurement protocols.

Additionally, the council discussed adopting the California Uniform Public Construction Cost Accounting Act (KUPCA), which would provide more flexibility in competitive bidding for public works projects. Under this act, informal quotes will be required for projects up to $220,000, while formal bidding will be necessary for projects exceeding that amount.

The council also addressed the petty cash threshold, increasing it from $100 to $200, with plans to present this policy for approval at a future meeting. These changes are expected to enhance operational efficiency and ensure that procurement processes align with state regulations.

As the city moves forward with these updates, officials emphasized the importance of tracking contract amendments to maintain compliance with the new thresholds. The council's decisions reflect a commitment to improving procurement practices, ultimately benefiting the Laguna Beach community by facilitating timely and efficient purchasing.