Laserfiche WebLink
Purchasing Policies and Procedures <br />May 16, 2023 <br />Page 4 <br />3 <br />4 <br />2 <br />9 <br />City CM Authority Informal Bids Formal Bids Local <br />Preference <br />Up to $250,000 <br />All Other: <br />Up to $50,000 <br />>$5,000- <br />$25,000 <br />or 4% Orange <br />County <br />business, for <br />purchases up <br />to $100,000 <br />Santa Ana <br />(Proposed) <br />Public Works <br />Contracts: <br />Up to $750,000 <br />All Other: <br />No Change <br />All: <br />>$15,000- <br />$50,000 <br />All: <br />>$50,000 <br />No Change <br />Several of the cities on this list noted that they are also considering increasing contract <br />authority and procurement thresholds. <br />City Manager Contracting Authority <br />The City’s current municipal code authorizes the City Manager to bind the City to any <br />non-public works contract in an amount not to exceed $50,000 and any public works <br />contract in an amount not to exceed $250,000. The municipal code also authorizes the <br />City Manager to bind the City on change orders to any one public work contract of no <br />more than ten percent of the original contract amount, or $25,000, whichever is greater. <br />With the increasing amount of public works projects, increasing cost of goods and <br />services, and desire to improve project delivery, the Public Works Agency and Finance <br />and Management Services Agency both recommend increasing the City Manager’s <br />contracting authority from $250,000 to $750,000 for public works contracts. All other <br />contracts above $50,000 will continue to require City Council approval. Additionally, <br />staff recommends increasing the City Manager’s change order authority to increase <br />from ten percent to 20 percent of the original contract amount. <br />Housekeeping Adjustments <br />Revisions are proposed to Articles VII and VII.II of Chapter 2 regarding City Manager’s <br />contracting authority and City purchasing rules and regulations, and Article VIII of <br />Chapter 33 regarding Public Works construction rules and regulations of the Santa Ana <br />Municipal Code to clarify the City’s current practice and additional clean-up language <br />which are administrative in nature. <br />FISCAL IMPACT <br />There is no quantifiable fiscal impact associated with the proposed ordinance. However, <br />the City would be able to utilize staff resources more efficiently for other public services. <br />EXHIBIT(S)