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Item 28 - Ordinance Amending Chapter 2 of the Santa Ana Municipal Code Related to Procurement and Contracting
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Item 28 - Ordinance Amending Chapter 2 of the Santa Ana Municipal Code Related to Procurement and Contracting
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Agenda Packet
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Public Works
Item #
28
Date
1/20/2026
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Ordinance Amending Procurement and Contracting Procedure of Vehicle and <br />Equipment Purchases <br />January 20, 2026 <br />Page 2 <br />inventory availability, and lower pricing opportunities when offered by manufacturers <br />and dealerships, as these private entities are less likely to hold inventory or commit to <br />lower price for extended periods. <br />After reviewing best -practice procurement models employed by other municipalities in <br />the region (Exhibit 1), staff recommends consolidating the City's annual vehicle needs <br />across all departments into a single, comprehensive report to the City Council. Under <br />the proposed annual process, a complete listing of the City's vehicle needs, along with a <br />not -to -exceed budget, would be identified and submitted to the City Council for budget <br />approval and purchase authorization prior to the competitive bidding process. Upon <br />approval by the City Council, the City Manager is authorized to carry out the vehicle <br />procurement process through a competitive bidding process, execute purchase <br />contracts, acquire the equipment, and report back to the City Council through the <br />existing quarterly report on contracts awarded by the City Manager. <br />The proposed process increases purchasing agility, enabling the City to respond rapidly <br />and effectively to changing market conditions and operational needs. It supports quick <br />execution of purchase orders for vehicles readily available on dealer lots, reducing the <br />risk of losing limited inventory to other competing buyers. In addition, orders can be <br />placed to meet manufacturer ordering windows, which are often time -sensitive. Overall, <br />this procurement model accelerates contracting and delivery, improves efficiency, and <br />positions the City to secure competitively -priced vehicles and equipment in a timely <br />manner, and with appropriate control measures in place ensuring the integrity and <br />transparency of the purchasing approval and budget allocation process. <br />This proposed procurement and contracting procedure is specific to purchasing of <br />vehicles and vehicle related equipment and necessitates amending the SAMC. Upon <br />approval of the recommended action, staff will annually return to City Council for <br />approval of the annual vehicle and equipment procurement which will serve as City <br />Council pre -authorization for the City Manager to bind the City on contracts and <br />purchases issued to successful vendors immediately following completion of <br />competitive bidding or through justified non -bid purchases, including piggybacking onto <br />established cooperative contracts that meet the City's own formal competitive bidding <br />process (SAMC Sec. 2-207(d)). All purchasing policies and procedures, including local <br />vendor preference, will be followed. Pre -authorized purchases will remain within City <br />Council -approved not -to -exceed amounts and valid for a period of one year from the <br />date of approval, unless otherwise specifically noted in the Council's Action. Should any <br />bids exceed the approved not -to -exceed amount, staff must return to City Council for <br />approval and additional appropriations. <br />The proposed revision to the SAMC maintains City Council oversight of budgeting and <br />purchasing decisions and Council approval of funding through the budget process <br />remains unchanged. This proposed process will enhance efficiency and streamline the <br />
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