Fortuna advances overhaul of purchasing code; council adopts revised purchasing procedures

The Fortuna City Council on Oct. 2025 introduced and conducted a first reading of ordinance 2025-777 to amend Chapter 2.5 of the Fortuna Municipal Code governing the city's purchasing system, and adopted Resolution 2025-21 to revise the purchasing procedures in the city's administrative policies and procedures manual.

City staff told the council the municipal code was last reviewed in 1997 and that the proposed ordinance separates procurement of goods from public works contracts, aligns bid thresholds with the Uniform Public Construction Cost Accounting Act (commonly referenced in the meeting as 'Kepka'), and clarifies procurement processes for architectural and engineering services and other professional services.

The ordinance would allow informal bidding and negotiated quotes for many goods under specified thresholds and would follow the Kupka/Kepka thresholds discussed in the staff presentation: contracts under $75,000 by quote/force account; $75,000 to $220,000 via informal bid; above $220,000 via formal bid procedure. Staff said architectural and engineering services must continue to use an RFP/RFQ process pursuant to the government code section cited in the presentation. The staff report noted Claire Gibson, a procurement law attorney, reviewed the proposed changes.

The council also adopted revisions to the city's purchasing procedures that raise department approval limits: supervisor approval from $1,000 to $2,000; department head from $5,000 to $10,000; and city manager from $30,000 to $100,000. The staff presentation emphasized that all purchases must remain within council-approved budgets and that the changes are intended to reduce staff time and advertising costs associated with formal bidding.

Council members asked clarifying questions about the sequence of adopting an ordinance versus an implementing policy. Staff explained the ordinance (the change to municipal code) can be adopted independently of an implementing policy; the policy implements the ordinance but the city could choose not to adopt the policy even if the code is changed. The council also heard that adopting thresholds that automatically update with the Uniform Public Construction Cost Accounting Act would limit the need for frequent future code revisions.

The council voted by roll call to introduce and read ordinance 2025-777 by title only and continued the second reading and public hearing to Oct. 20, 2025. The council then adopted Resolution 2025-21 approving the revised purchasing procedures by separate motion and roll call vote.

Ending: The ordinance will return to the council for a second reading and final adoption at the continued hearing; the revised administrative purchasing procedures are effective as adopted by resolution. Staff said they expect reductions in staff time and bidding costs but that all purchases will still require council-approved budget authority.