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Ordinance No. NS-XXX <br />Page 1 of 9 <br />ORDINANCE NO. NS-XXX <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA AMENDING ARTICLES VII AND VII.II OF <br />CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE <br />REGARDING CITY MANAGER’S CONTRACTING <br />AUTHORITY AND CITY PURCHASING RULES AND <br />REGULATIONS, AND ARTICLE VIII OF CHAPTER 33 OF <br />THE SANTA ANA MUNICIPAL CODE REGARDING PUBLIC <br />WORKS CONSTRUCTION RULES AND REGULATIONS <br />WHEREAS, Sections 421 and 422 of the Santa Ana City Charter provide that the <br />City Council may by ordinance authorize the City Manager to bind the City on non -public <br />works contracts and public works contracts for such amounts as may be established from <br />time to time. <br />WHEREAS, Sections 421 and 422 also provide that the City Council may by <br />ordinance establish rules and procedures for competitive bidding for non-public works <br />contracts and public works contracts. <br />WHEREAS, on March 19, 2019, the City Council adopted Ordinance No. NS-2963, <br />by which the City Manager’s contracting authority was increased to $50,000 for non -public <br />works contracts and to $250,000 for public works contracts. <br />WHEREAS, the City Council is regularly presented with a voluminous amount of <br />contracts and agreements for approval annually. The process to obtain City Council <br />approval can be lengthy and requires a substantial amount of City staff time. This process <br />can also adversely impact the City’s ability to provide efficient and timely delivery of <br />services to its constituents and businesses. <br />WHEREAS, since the beginning of the current Fiscal Year, the City of Santa Ana, <br />has prepared and solicited over 105 Invitations for Bids (IFB) and Requests for Proposals <br />(RFP); of which, approximately seventy six percent (76%) were related to a Public Works <br />Agency project. The Public Works Agency, together with the Finance and Management <br />Services Agency, finds that revisions to both the City Manager’s contract authority and <br />purchasing requirements regarding its informal and formal bidding process are necessary <br />to modernize the City’s procurement process, increase the pool of companies who bid on <br />City projects, increase efficiency, expedite project delivery, and closely align the City’s <br />purchasing requirements with newly enacted federal and state guidelines , while also <br />maintaining local vendor preferences. <br />WHEREAS, further increasing the City Manager’s contracting authority for both <br />non-public works and public works contracts and other housekeeping changes to the <br />City’s procurement rules and procedures are also desirable because they will free staff <br />time to devote to other necessary public services and facilitate participation of small local <br />vendors for the City’s business, as the formal process can be time-consuming and costly. <br />EXHIBIT 1