50A - ORD AMND MANAGER'S CONTRACT AUTHORITY

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Amend City Manager's Contracting Authority for Non -Public Works and Public Works Contracts December 4, 2018 Page 3 population such as Anaheim, Irvine and Long Beach, have City Manager contracting authority averaging $100,000. The proposed action will increase the City Manager's authority to enter into contracts and agreements for non-public works contracts to $100,000. The proposed action would also increase the City Manager's contracting authority for public works contracts to $250,000, which would include contracts for maintenance and repair, the procurement of materials, supplies and services relating to projects for the erection or improvement of public buildings, streets, drains, sewers, and/or parks. The Council is also being asked to amend the municipal code to increase the City Manager's authority to execute change orders to public works contracts to a maximum of 10% of the original contract amount or $25,000, whichever is greater. In the case of a City Manager executed contract, the total maximum would be $275,000 ($250,000 + 10% or $25,000). In the case of a City Council approved contract, the change order could be more (e.g. 10% of a $3 million contract is $300,000). As stated above, all procurement activity would still be subject to the same bid thresholds and stringent procurement policies and procedures in effect. The proposed Ordinance also includes City Manager authority to authorize emergency contracts up to $100,000. Emergency contracts do not require formal bids. The proposed action will increase the City Manager's authority to approve contracts and agreements in an effort to improve efficiency within City processes, improve the delivery of services necessary for the continued enhancement and preservation of public infrastructure and help meet Strategic Plan objectives. Upon presentation of a contract to the City Manager for signature, staff shall identify budgeted funds including account numbers in the existing fiscal year budget covering the contract period. All contracts shall be reviewed and approved as to form by the City Attorney regardless of amount. The City Manager will prepare and submit to City Council on a quarterly basis a report outlining all contracts approved by the City Manager along with corresponding amounts, purpose/scope, contractor/vendor name, etc. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #1 (maintain a stable, efficient and transparent financial environment), and Goal #7 - Team Santa Ana, Objective #5 (create a culture of innovation and efficiency within the organization), Strategy E (identify best practices and opportunities for process improvement and automation across City departments in order to provide effective and efficient delivery of City services to the community). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action