HomeMy WebLinkAboutPOWERPOINT-50A DISCUSSION AND CONSIDERATION TO AMEND CITY MANAGER AUTHORITY TO EXECUTE CONTRACTS AND AGREEMENTSDiscussion and Consideration to Amend City
Manager Authority to Execute Contracts and
Agreements
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City Council Meeting December 4, 2018
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Background
• City issues contracts for various goods and services
— Council's adopted FY 18/19 budget, includes $43.6M in
contractual expenditures for PWA alone
• City Council approves approximately 275 contracts and
agreements annually
— Contracts for materials, supplies, labor and/or equipment
— Agreements for professional services
• Any contract and agreement award over $25,000
requires Council Approval
— City Manager's authority to execute contracts and
agreements is limited to $25,000
Proposed Amendment
• Amend City Manager's signing authority for non-public
works contracts from $25,000 to $100,000 per vendor.
• Amend City Manager's signing authority for public
works contracts from $25,000 to $250,000 per vendor.
• Increase City Manager's signing authority for change
orders to public works contracts to $25,000 or 10%
which ever is greater.
• Grant City Manager signing authority for emergency
Public Works contracts up to $100,000.
Examples
• Contracts and agreements recently
approved by Council which would fall
under proposed signing limits
— Water system control panels
($75,000)
— Guardrail, Fence, Block Wall &
Bollard ($45,000)
— Sewer manhole pest control
($100,000)
— Sidewalk grinding ($150,000)
— Pressure Washing ($137,300)
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City ..
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Irvine
$1,000,000
276,176
•
Westminster
$175,000
94,476
Newport Beach
$120,000
87,182
Long Beach
$100,000
478,561
Huntington Beach
$100,000
202,648
Anaheim
$50,000
357,084
Garden Grove
$50,000
176,896
• • ' •
Costa Mesa
$50,000
115,296
1 •
Fountain Valley
$50,000
56,920
San Juan Capistrano
$45,000
36,759
La Habra
$35,000
62,850
•
Seal Beach
$33,000
25,984
, • • 11 111
Buena Park
$30,000
83,995
Rancho Santa Margarita
$30,000
49,329
•
Orange
$29,999
141,952
• • , • •
Brea
$25,000
44,890
Cypress
$25,000
49,978
•
La Palma
$25,000
15,948
Placentia
$25,000
52,755
'
San Clemente
$25,000
65,543
' • • • • • •
Santa Ana
$25,000
338,247
• . • • • .
Tustin
$25,000
82,334
•
Fullerton
$24,999
144,214
Stanton
$20,000
39,470
Existing Controls
Competitive bidding processes and procedures as
currently defined by the Santa Ana Municipal Code
will not change.
Proposed Reporting
City Manager will be required to submit to City
Council a report for all contracts approved under the
proposed limits on quarterly basis.
Benefits
• Improve response time to community needs/concerns
• Reduce the amount of contract and agreement RFCA reports
brought before Council by 40% (from about 300 to 185)
• Save staff time and improve efficiency within City processes
(Strategic Plan Objective)
• Enhanced ability to deliver public infrastructure services in a
timely manner
• Does not affect the Community Workforce agreement or any
other labor contracts
• Does not alter the existing requirements for soliciting,
selecting, and approving contracts (competitive bidding,
lowest bid prices, min qualifications, etc.)
• Staff will continue outreach to local businesses to encourage
participation in city contracts
Recommended Action
Amend Ordinance
Questions,, Thank You
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