Item 31 - Purchasing Policies and Procedures

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Public Works Agency www.santa-ana.org/public-works Item # 31 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 16, 2023 TOPIC: Purchasing Policies and Procedures AGENDA TITLE Ordinance Amending City Manager’s Contracting Authority for Public Works and Non- Public Works Contracts Under Chapter 2, Article VII and Article VII.II and Public Works Construction Rules and Regulations Under Chapter 33, Article VIII of the Santa Ana Municipal Code RECOMMENDED ACTION Approve the first reading of an ordinance amending Articles VII and VII.II of Chapter 2 regarding the City Manager’s contracting authority and City purchasing rules and regulations, and Article VIII of Chapter 33 regarding Public Works construction rules and regulations of the Santa Ana Municipal Code as follows: i) Amend Section 2-748 of Chapter 2, Article VII concerning the City Manager’s Contracting Authority: (1) Public Works contracts to increase from $250,000 to $750,000; (2) emergency public works construction contracts to increase from $100,000 to $750,000; and (3) Non-Public Works and Public Works contract change orders authority increase from 10 percent or $25,000, whichever is greater, to 20 percent. ii) Amend Section 2-803 to 2-807 of Chapter 2, Articles VII.II concerning Purchasing Rules and Regulations: (1) Clarifying language administrative in nature; (2) Extending local vendor preference to increase from procurement between $5,000 and $100,000 to procurement between $15,000 and $100,000; (3) For administrative contracts to increase from $5,000 to $15,000; (4) For informal contracts to increase from $5,000 and $25,000 to $15,000 and $50,000; (5) For formal contracts to increase from $25,000 to $50,000 (6) For no-bid purchases to increase from $25,000 to $50,000; and (7) Add language to coincide with current practices for awarding service contracts.