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

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Ordinance No. NS-XXX Page 2 of 8 WHEREAS, further increasing the City Manager’s contracting authority for both non-public works and public works contracts and change orders to such contracts will also further streamline the process to execute Public Works Agency contracts and agreements for the construction, rehabilitation, maintenance, testing and inspection of public infrastructure, thereby improving the delivery of services necessary for the continued enhancement and preservation of such public infrastructure. WHEREAS, due to the increasing cost of goods and services as a result of normal, as well as historic inflation, informal and formal bidding have become more frequent. Increasing the informal and formal bidding threshold requirement will allow flexibility for City staff to perform as-needed procurement at local businesses, complete more efficient project deliveries, and increase overall efficiency with existing resources. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The recitals above are each incorporated and adopted as findings by the City Council. Section 2. Section 2-748 of Article VII (City Manager’s Contracting Authority) of Chapter 2 (Administration) of the Santa Ana Municipal Code is hereby amended to read in its entirety as follows: Sec. 2-748. – City manager’s contracting authority. (a) Non-public works contracts. (1) The city manager is authorized to bind the city to any one (1) or more written non-public works contract, per vendor, in an amount or amounts not exceeding the sum of fifty thousand dollars ($50,000.00). For purposes of this section, a non-public works contract shall mean any contract not deemed to be a public works contract under subsection (b)(1). (2) The city manager is hereby authorized to bind the city on amendments to any one (1) non-public works contract when such amendment for any one (1) non- public works contract, together with any previously approved amendments for said contract, do not cumulatively amount to an increase of the city's expenditure obligation under said contract of more than twenty (20) percent of the original contract amount. (b) Public works contracts. (1) The city manager is authorized to bind the city to any one (1) or more written public works contract, per vendor, in an amount or amounts not exceeding the sum of five hundred thousand dollars ($500,000). For purposes of this section, a public works contract shall be deemed to mean a project for the erection, improvement, and/or maintenance, inspection, testing and repair of public buildings, streets, drains, sewers, or parks.