PURCHASING POLICY COUNCIL POLICY Adopted: 8/8/2006 Last Adopted: 6/4/2024 A. Purpose and Scope To establish policy and procedures for the purchase of goods and services in the most efficient, effective, economical, environmental, ethical, and responsible manner possible. B. General Purchases of goods, materials, equipment, supplies, professional services, and maintenance and repair services are regulated by Title 3, Division 6, of the Laguna Niguel Municipal Code (LNMC). Purchases related to public projects are regulated by Title 3, Division 7 of the LNMC. Requirements for each purchase depend on its type. The types of purchases are listed below and procedures related to each follow. Departments are responsible for including all ancillary costs (i.e. sales and use tax, freight, etc.) when reviewing a vendor’s quote in order to determine the applicable quoting/bidding requirements. The Finance Department has the authority to review and audit any purchase order (PO), contract, and professional services agreement to ensure compliance with the City’s procurement procedures. The Finance Department may require Departments to solicit bids or request proposals for goods and services that are repetitively purchased throughout the fiscal year. Employees shall not make multiple purchases and/or split multiple purchases of less than $3,000.00 from the same vendor or from different vendors with the intent to avoid the PO or contract requirement. Except in an emergency, with the approval of the City Manager, no employee of the City shall request a supplier to deliver goods, material, equipment, supplies, professional or non-professional services to the City unless a PO and/or contract has been issued by the Finance Department according to the requirements of this Policy. C. Procedures 1. Local Merchant Preference City of Laguna Niguel (City) staff shall make every attempt to purchase supplies and equipment from City businesses whenever practicable. LNMC 3-6-2(b)(1), establishes a local merchant purchasing preference in the form of a one-percent PURCHASING POLICY Page 1 of 10 COUNCIL POLICY LAST ADOPTED 6/4/2024 135