Item 49 - Second Reading: Amending City Manager’s Contracting Authority

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Ordinance No. NS-XXX Page 1 of 8 ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING ARTICLES VII AND VII.II OF CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE REGARDING CITY MANAGER’S CONTRACTING AUTHORITY AND CITY PURCHASING RULES AND REGULATIONS, AND ARTICLE VIII OF CHAPTER 33 OF THE SANTA ANA MUNICIPAL CODE REGARDING PUBLIC WORKS CONSTRUCTION RULES AND REGULATIONS WHEREAS, Sections 421 and 422 of the Santa Ana City Charter provide that the City Council may by ordinance authorize the City Manager to bind the City on non -public works contracts and public works contracts for such amounts as may be established from time to time. WHEREAS, Sections 421 and 422 also provide that the City Council may by ordinance establish rules and procedures for competitive bidding for non-public works contracts and public works contracts. WHEREAS, on March 19, 2019, the City Council adopted Ordinance No. NS-2963, by which the City Manager’s contracting authority was increased to $50,000 for non -public works contracts and to $250,000 for public works contracts. WHEREAS, the City Council is regularly presented with a voluminous amount of contracts and agreements for approval annually. The process to obtain City Council approval can be lengthy and requires a substantial amount of City staff time. This process can also adversely impact the City’s ability to provide efficient and timely delivery of services to its constituents and businesses. WHEREAS, since the beginning of the current Fiscal Year, the City of Santa Ana, has prepared and solicited over 105 Invitations for Bids (IFB) and Requests for Proposals (RFP); of which, approximately seventy six percent (76%) were related to a Public Works Agency project. The Public Works Agency, together with the Finance and Management Services Agency, finds that revisions to both the City Manager’s contract authority and purchasing requirements regarding its informal and formal bidding process are necessary to modernize the City’s procurement process, increase the pool of companies who bid on City projects, increase efficiency, expedite project delivery, and closely align the City’s purchasing requirements with newly enacted federal and state guidelines , while also maintaining local vendor preferences. WHEREAS, further increasing the City Manager’s contracting authority for both non-public works and public works contracts and other housekeeping changes to the City’s procurement rules and procedures are also desirable because they will free staff time to devote to other necessary public services and facilitate participation of small local vendors for the City’s business, as the formal process can be time-consuming and costly. EXHIBIT 1