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Home My WebLink About11A - 2ND READ ORD - CM CONTRACT AUTHORITYREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 19, 2019 TITLE: ORDINANCE SECOND READING: AMENDING CITY MANAGER'S CONTRACTING AUTHORITY FOR NON- PUBLIC WORKS AND PUBLIC WORKS CONTRACTS {STRATEGIC PLAN NO. 5,1} CITY MANAGER RECOMMENDED ACTION Place ordinance on second reading and adopt. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER On March 5, 2019, the following ordinance was introduced for first reading and City Council authorized publication of title by a vote of 5-1 (Iglesias dissented): ORDINANCE NO. NS -2963 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 2-1, SECTION 2-801, AND SECTION 33-201 OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE CITY MANAGER'S AUTHORITY TO BIND THE CITY TO NON-PUBLIC WORKS AND PUBLIC WORKS CONTRACTS, INCREASING THE CITY MANAGER'S CONTRACT AUTHORITY FOR NON-PUBLIC WORKS CONTRACTS TO $50,000 AND PUBLIC WORKS CONTRACTS TO $250,000, AND REORGANIZING THE CITY MANAGER'S CONTRACT AUTHORITY UNDER CHAPTER 2, ARTICLE VII OF THE SANTA ANA MUNICIPAL CODE In summary, this action will increase the City Manager's authority to enter into non-public works contracts and agreements up to $50,000 and public works contracts and agreements up to $250,000 and will consolidate the various sections of the municipal code relating to City Manager Contracting Authority including change orders and emergency public works contracts under one section of the code. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative to expand access to information and create opportunities for stakeholders to play an active role in discussing public policy and setting priorities). 11 A-1 Second Reading Ordinance: Amending City Manager's Contracting Authority March 19, 2019 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. C��1'r/�2er Norma Mitre Acting Clerk of the Council Exhibit: 1. Ordinance No. NS -2963 11 A-2 SC 3.19.2019 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTION 2-1, SECTION 2-801, AND SECTION 33-201 OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE CITY MANAGER'S AUTHORITY TO BIND THE CITY TO NON-PUBLIC WORKS AND PUBLIC WORKS CONTRACTS, INCREASING THE CITY MANAGER'S CONTRACT AUTHORITY FOR NON-PUBLIC WORKS CONTRACTS TO $50,000 AND PUBLIC WORKS CONTRACTS TO $250,000, AND REORGANIZING THE CITY MANAGER'S CONTRACT AUTHORITY UNDER CHAPTER 2, ARTICLE VII OF THE SANTA ANA MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Pursuant to Sections 421(b) (non-public works contracts) and 422(c) (public works contracts) of the City of Santa Ana Charter, the City Council may, by ordinance, authorize the City Manager to bind the City on contracts at amounts that may be established from time to time by the City Council. B. Currently, the City Manager is authorized to bind the City to both non-public works contracts and public works contracts in an amount not to exceed twenty- five thousand dollars ($25,000). All contracts and agreements over $25,000 must be approved by the City Council. C. Regardless of the contract amount, all contracts must comply with the City's Purchasing Policies & Procedures designed to ensure fair and competitive procurement practices. D, On average, the City Council is currently presented with over 250 contracts and agreements for approval annually, The process to obtain City Council approval can be lengthy and requires a substantial amount of City staff time. This process also adversely Impacts the City's ability to provide efficient and timely delivery of services to its constituents and businesses, E. Increasing the City Manager's contracting authority for both non-public works and public works contracts and change orders to such contracts will free staff time to devote to other necessary public services. F. Increasing the City Manager's contracting authority for both non-public works and public works contracts and change orders to such contracts will also streamline the process to execute Public Works Agency contracts and agreements for the construction, rehabilitation, maintenance, testing and EXHIBIT 1 11 A-3 SC 3.19.2019 inspection of public infrastructure, thereby improving the delivery of services necessary for the continued enhancement and preservation of such public infrastructure. G. Reorganizing the City Manager's contracting authority from three different articles in the Municipal Code into one Article will provide a concise and organized location within the Municipal Code for City Staff and the public to reference this delegation of authority by the City Council to the City Manager, as provided under the City Charter. S ction_2. Section 2-1 of Chapter 2, Article I of the Santa Ana Municipal Code is hereby amended to read as follows: e 911R. W[W-Iffliamly PRINO 11 0 Q-_ 1, Section 3. Section 2-801 of Chapter 2, Article VII of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 2-801. — Reserved. +-mar+agu r*. Section 4. Section 33-201 of Chapter 33, Article VIII of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 33-201. — Reserved. authority, ry.� {{��µ yy J-wFttiye�n-sefftfat ^s{ G4f Me�bi 0 WGFks1'1��'}Y1t"1i4L Wtling`itie"�'�i'1t'ttt-lO1Y *W-1G0gTG0)- Section 5. Chapter 2, Article VII of the Santa Ana Municipal Code is hereby amended to read as follow: ARTICLE VII, — RESSRr`: CITY MANAGER'S CONTRACTING AUTHORITY Section 2-748. — Reeewed: City manager's contracting authority. 11 A-4 SC 3.19.2019 (a) Non-public works contracts The city manager is authorized to bind the City to any one 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). For purposes of this section, a non-public works contact shall mean any contact not deemed to be a public works contract under subsection (b)(1). (b) Public works contracts The city manager is authorized to bind the City to any one or more written public works contract, per vendor, in an amount or amounts not exceeding the sum of two hundred and fifty thousand dollars ($250,000.00). For purposes of this section, a public works contact 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 written contract for emergency public works construction in an amount not exceeding the sum of one hundred thousand dollars ($100,000.00). 3. The city manager of the City of Santa Ana is hereby authorized to bind the City of Santa Ana on change orders to any one public works contract, per vendor, without previous city council approval when such change order for any one (1) public works contract, together with any previously approved change orders for said contract, do not cumulatively amount to an increase of the city's expenditure obligation under said contract of more than ten (10) per cent of the original contract amount, or the amount of twenty-five thousand dollars ($25,000.00), whichever is the greater. Section 2-749 — Reserved. Segii2n6. 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 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 7. Effective Date. This ordinance shall become effective thirty (30) days following its second reading and its adoption. 11 A-5 SC 3.19.2019 The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of Santa Ana, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933, ADOPTED this _ day of March, 2615. Miguel A. Pulido Mayor APPROVED AS TO FORM: A, k-dw onia Carvalho City Attorney AYES: Councilmembers: NOES: Councilmembers; ABSTAIN: Councilmembers: ABSENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, NORMA MITRE, Cleric of the Council, do hereby attest to and certify that the attached Ordinance No. CJS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Norma Mitre Acting Clerk of the Council City of Santa Ana 11 A-6