HomeMy WebLinkAboutItem 28 - Ordinance Amending Chapter 2 of the Santa Ana Municipal Code Related to Procurement and ContractingPublic Works Agency
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Item # 28
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 20, 2026
TOPIC: Ordinance Amending Chapter 2, Article VII of the Santa Ana Municipal Code
Specifying the Procurement and Contracting Procedure of for Vehicle and Vehicle
Related Equipment Purchases
AGENDA TITLE
Ordinance Amending Chapter 2 of the Santa Ana Municipal Code As To Section 2-748
Specifying the Procurement and Contracting Procedure for Vehicle and Vehicle Related
Equipment Purchases
RECOMMENDED ACTION
Approve the first reading of an ordinance amending Section 2-748 of Article VII, of
Chapter 2 of the Santa Ana Municipal Code (SAMC) specifying the procurement and
contracting procedure for vehicle and vehicle related equipment purchases.
ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA AMENDING CHAPTER 2 OF THE SANTA ANA
MUNICIPAL CODE AS TO SECTION 2-748 SPECIFYING THE PROCUREMENT AND
CONTRACTING PROCEDURE FOR VEHICLE AND VEHICLE RELATED
EQUIPMENT PURCHASES
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The City of Santa Ana regularly procures vehicles and specialized heavy equipment and
machinery necessary to support essential municipal operations, including police, public
works, planning and building, parks and recreation, and various other departments.
Heavy equipment and machinery, such as loaders, backhoes, sweepers, and utility
trucks, function as operational vehicles and are integral to the City's fleet, requiring the
same procurement, funding, maintenance, and lifecycle replacement considerations as
traditional vehicles.
In prior years, staff presented multiple individual staff reports throughout the year with
recommendations for individual vehicle purchases after the City has underwent a
competitive bidding process. This process requires a longer lead time and has
consistently fragmented the City's purchasing power. It has also hampered the City's
ability to act in a timely manner and take advantage of market conditions, immediate
Ordinance Amending Procurement and Contracting Procedure of Vehicle and
Equipment Purchases
January 20, 2026
Page 2
inventory availability, and lower pricing opportunities when offered by manufacturers
and dealerships, as these private entities are less likely to hold inventory or commit to
lower price for extended periods.
After reviewing best -practice procurement models employed by other municipalities in
the region (Exhibit 1), staff recommends consolidating the City's annual vehicle needs
across all departments into a single, comprehensive report to the City Council. Under
the proposed annual process, a complete listing of the City's vehicle needs, along with a
not -to -exceed budget, would be identified and submitted to the City Council for budget
approval and purchase authorization prior to the competitive bidding process. Upon
approval by the City Council, the City Manager is authorized to carry out the vehicle
procurement process through a competitive bidding process, execute purchase
contracts, acquire the equipment, and report back to the City Council through the
existing quarterly report on contracts awarded by the City Manager.
The proposed process increases purchasing agility, enabling the City to respond rapidly
and effectively to changing market conditions and operational needs. It supports quick
execution of purchase orders for vehicles readily available on dealer lots, reducing the
risk of losing limited inventory to other competing buyers. In addition, orders can be
placed to meet manufacturer ordering windows, which are often time -sensitive. Overall,
this procurement model accelerates contracting and delivery, improves efficiency, and
positions the City to secure competitively -priced vehicles and equipment in a timely
manner, and with appropriate control measures in place ensuring the integrity and
transparency of the purchasing approval and budget allocation process.
This proposed procurement and contracting procedure is specific to purchasing of
vehicles and vehicle related equipment and necessitates amending the SAMC. Upon
approval of the recommended action, staff will annually return to City Council for
approval of the annual vehicle and equipment procurement which will serve as City
Council pre -authorization for the City Manager to bind the City on contracts and
purchases issued to successful vendors immediately following completion of
competitive bidding or through justified non -bid purchases, including piggybacking onto
established cooperative contracts that meet the City's own formal competitive bidding
process (SAMC Sec. 2-207(d)). All purchasing policies and procedures, including local
vendor preference, will be followed. Pre -authorized purchases will remain within City
Council -approved not -to -exceed amounts and valid for a period of one year from the
date of approval, unless otherwise specifically noted in the Council's Action. Should any
bids exceed the approved not -to -exceed amount, staff must return to City Council for
approval and additional appropriations.
The proposed revision to the SAMC maintains City Council oversight of budgeting and
purchasing decisions and Council approval of funding through the budget process
remains unchanged. This proposed process will enhance efficiency and streamline the
Ordinance Amending Procurement and Contracting Procedure of Vehicle and
Equipment Purchases
January 20, 2026
Page 3
procurement of City vehicles and vehicle related equipment. Staff recommends
approving the recommended action to add subsection (d) Pre -Authorization by City
Council to Section 2-748 of Article VI I, Chapter 2 (Exhibit 2).
ENVIRONMENTAL IMPACT
There is no environmental impact associated with the action.
FISCAL IMPACT
There is no quantifiable fiscal impact associated with the proposed ordinance. All vehicle
and equipment contracts and purchases executed under the amended authority would be
limited based on the annual vehicle and equipment procurement staff report approved by
Council.
EXHIBIT(S)
1. Administrative Authority for Vehicle and Equipment Purchases City Comparison
2. Ordinance amending Chapter 2, Article VII, Section 2-748
Submitted By: Rodolfo Rosas, P.E., Acting Executive Director— Public Works Agency
Approved By: Alvaro Nunez, City Manager
Exhibit 1
Administrative Authority for Vehicle and Equipment Purchases City Comparison
The following table summarizes the contracting and purchasing authority for charter cities
in Southern California with populations from 300,000 to 500,000. The table also includes
the current and proposed thresholds for Santa Ana.
City
Administrative Authority for Vehicle & Equipment Purchases
Anaheim
Allows pre -authorization of Purchasing Agent to execute purchase
orders for vehicles and equipment within council -approved
budgeted amounts immediately following competitive bidding.
Burbank
Non -construction vehicle purchases do not require City Council
approval.
Irvine
City Manager retains contract approval and signature authority up
to $1,000,000. Vehicle purchases do not need Council approval.
Long Beach
Non -construction vehicle purchases do not require City Council
approval.
Santa Ana
Does not allow for pre -authorization of City Manager to execute
(Current)
purchase orders for vehicles and equipment within Council -
approved budgeted amounts immediately following competitive
bidding. Every vehicle purchase must be approved by City Council
following competitive bidding.
Santa Ana
Allow for pre -authorization of City Manager to bind the City on
(Proposed)
purchase orders issued to successful vendors for the acquisition
of vehicles and equipment immediately following a competitive
bidding process, or through a justified non -bid purchase, provided
such contracts and purchases do not exceed the amounts
approved by City Council.
Exhibit 2
ORDINANCE NO. NS-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING CHAPTER 2 OF THE SANTA ANA
MUNICIPAL CODE AS TO SECTION 2-748 SPECIFYING
THE PROCUREMENT AND CONTRACTING PROCEDURE
FOR VEHICLE AND VEHICLE RELATED EQUIPMENT
PURCHASES
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS
FOLLOWS:
Section 1. Section 2-748 of Article VII, of Chapter 2 of the Santa Ana Municipal
Code is hereby amended to add subsection (d) and read as follows:
Sec. 2-748.- City manager's contracting authority.
(a) Non-public works contracts.
(1) The city manager is authorized to bind the city to any one (1) or more
written non-public works contract, per vendor, in an amount or amounts not exceeding
the sum of fifty thousand dollars ($50,000.00) per department, and per each Fiscal
Year. For purposes of this section, a non-public works contract shall mean any contract
not deemed to be a public works contract under subsection (b)(1).
(2) The city manager is hereby authorized to bind the city on amendments to
any one (1) non-public works contract when such amendment for any one (1) non-public
works contract, together with any previously approved amendments for said contract, do
not cumulatively amount to an increase of the city's expenditure obligation under said
contract of more than twenty (20) percent of the original contract amount.
(b) Public works contracts.
(1) The city manager is authorized to bind the city to any one (1) or more
written public works contract, per vendor, in an amount or amounts not exceeding the
sum of five hundred thousand dollars ($500,000). For purposes of this section, a public
works contract shall be deemed to mean a project for the erection, improvement, and/or
maintenance, inspection, testing and repair of public buildings, streets, drains, sewers,
or parks.
(2) The city manager is authorized to bind the city to any one (1) written
contract for emergency public works construction in an amount not exceeding the sum
of five hundred thousand dollars ($500,000).
(3) The city manager is hereby authorized to bind the city on change orders to
any one (1) public works contract, when such change order for any one (1) public works
contract, together with any previously approved change orders for said contract, do not
Ordinance No. NS-XXX
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cumulatively amount to an increase of the city's expenditure obligation under said
contract of more than twenty (20) percent of the original contract amount.
(c)Website access and search features.
(1) All agreements approved by the City Manager shall be posted to the City's
website on a quarterly basis.
(2) The City's website shall provide search capabilities allowing users to search
any and all agreements approved by the city manager based on words, phrases, and
dollar amounts.
d) Pre -Authorization by City Council for Vehicle Purchases.
(1) Upon application, the City Council may pre -authorize the City Manager to
rocure and execute contracts and purchases for vehicles and vehicle -related
equipment.
(2) An application to the City Council shall include:
(A) General terms of the proposed procurement, contracts and purchases,
including a description of the vehicle or equipment, proposed duration, and relevant
contractual terms and conditions.
(B) Detailed budget and fiscal impact for all aspects of the proposed
contracts and purchases, including the maximum to be expended, breakdown of all
costs, and funding source.
(C) Method or methods of procurement to be utilized, demonstrating
compliance with City's Purchasing Rules and Regulations.
(D) Discussion detailing the public benefit served by the proposed pre -
authorization and City Manager's recommendation for approval.
(3) Upon receipt of the City Manager's application and accompanying report,
the City Council shall review the documentation and, if satisfied the proposed actions
are in the public interest, may pre -authorize the City Manager to proceed with the
procurement and execution of contracts and purchases as recommended.
4) If aaaroved by City Council. authority Dursuant to this Section shall be valid
for a period of one (1) year from date of approval, unless otherwise specifically noted in
the Council's Action.
(5) All contracts and purchases executed pursuant to this Section shall be
reported by the City Manager as outlined in Subsection (c), above.
Section 2. If any section, subsection, sentence, clause, phrase or portion of
this ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
Ordinance No. NS-XXX
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portions of this ordinance. The City Council of the City of Santa Ana hereby declares that
it would have adopted this ordinance and each section, subsection, sentence, clause,
phrase or portion thereof irrespective of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
Section 3. This Ordinance shall become effective thirty (30) days after its
adoption.
Section 4. The City Clerk shall certify the adoption of this Ordinance and
shall cause the same to be published as required by law.
ADOPTED this day of )2026.
Valerie Amezcua
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By.
Ky�fe Nellesen
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
ABSENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify the attached Ordinance
No. NS-XXXXXX to be the original ordinance adopted by the City Council of the City of
Santa Ana on .2026.
Date:
Jennifer L. Hall
City Clerk
City of Santa Ana
Ordinance No. NS-XXX
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