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Amend City Manager Contracting Authority, Procurement Requirements for Non-Public <br />Works and Public Works Contracts and Public Works Construction Rules and Regulations <br />March 1, 2022 <br />Page 3 <br />2 <br />4 <br />6 <br />4 <br />Comparison to Other Cities and Proposed Thresholds <br />The following table summarizes the contracting and purchasing authority for charter cities <br />in Southern California with populations from 300,000 to 500,000. The table includes the <br />current and proposed thresholds for Santa Ana. <br />City CM Authority Informal Bids Formal Bids Local Preference <br />Anaheim All: <br />Up to $200,000 <br />Public Projects: <br />$10,000-$50,000 <br />require up to 3 quotes <br />All Other: <br />>$500-$20,000 <br />Public Projects: <br />Over $100k <br />All Other: <br />>$20,000 <br />5% maximum $2,000 <br />Irvine All: <br />Up to $1,000,000 <br />Public Projects: <br />>$60,000-$200,000 <br />All Other: <br />$10,000 – $45,000 <br />Public Projects: <br />>$200,000 <br />All Other: <br />$45,000-$200,000 <br />5% maximum $2,000 <br />Long <br />Beach <br />All: <br />Up to $200,000 <br />None Required Public Projects: <br />$25,000 <br />All Other: <br />>$100,000 <br />10% maximum $10,000 <br />Riverside All: <br />Up to $50,000 <br />Public Projects: <br />Up to $25,000 <br />All Other: <br />Up to $50,000 <br />Public Projects: <br />>$50,000 <br />All Other: <br />>$50,000 <br />5% <br />Santa Ana <br />Current <br />Public Works <br />Contracts: <br />Up to $250,000 <br />All Other: <br />Up to $50,000 <br />Public Works <br />Construction: <br />Not Applicable <br />All Other: <br />>$5,000-$25,000 <br />Public Works <br />Construction: <br />>$500 <br />All Other: <br />>$25,000 <br />7% small Santa Ana <br />business or 4% <br />Orange County <br />business, for <br />purchases up to <br />$100,000 <br />Santa Ana <br />Proposed <br />Public Works <br />Contracts: <br />Up to $250,000 <br />All Other: <br />Up to $250,000 <br />Public Works <br />Contracts: <br />>$50,000-$250,000 <br />All Other: <br />>$10,000-$50,000 <br />Public Works <br />Contracts: <br />>$250,000 <br />All Other: <br />>$50,000 <br />No Change <br />City Manager Contracting Authority <br />Staff publishes a quarterly report of all contracts issued by the City Manager in excess of <br />$500, as required by SAMC 2-804, to ensure full transparency and accountability. The <br />quarterly report includes vendor name, issuing department, and description of items or <br />services, and amount of the contract. The only recommended change to the quarterly <br />report is to increase the reporting threshold from $500 to $1,000. <br />Agenda process time is the primary reason behind the recommended change to the City <br />Manager’s contract authority. Departments must submit proposed City Council staff <br />reports two weeks prior to the City Council meeting, then execution of City Council <br />approved contracts is coordinated with the Mayor’s schedule. The proposed ordinance <br />would increase efficiency, reduce staff time, and allow the City Manager to issue small <br />contracts up to three weeks faster.