HomeMy WebLinkAboutNS-3041 - Amending Articles VII and VII.II of Chapter 2 of the Santa Ana Municipal Code Regarding City Manager's Contracting Authority and City Purchaisng Rules and Regulations...ORDINANCE NO. NS-3041
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING ARTICLES VII AND VII.II OF
CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE
REGARDING CITY MANAGER'S CONTRACTING
AUTHORITY AND CITY PURCHASING RULES AND
REGULATIONS, AND ARTICLE VIII OF CHAPTER 33 OF
THE SANTA ANA MUNICIPAL CODE REGARDING PUBLIC
WORKS CONSTRUCTION RULES AND REGULATIONS
WHEREAS, Sections 421 and 422 of the Santa Ana City Charter provide that the
City Council may by ordinance authorize the City Manager to bind the City on non-public
works contracts and public works contracts for such amounts as may be established from
time to time.
WHEREAS, Sections 421 and 422 also provide that the City Council may by
ordinance establish rules and procedures for competitive bidding for non-public works
contracts and public works contracts.
WHEREAS, on March 19, 2019, the City Council adopted Ordinance No. NS-2963,
by which the City Manager's contracting authority was increased to $50,000 for non-public
works contracts and to $250,000 for public works contracts.
WHEREAS, the City Council is regularly presented with a voluminous amount of
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
can also adversely impact the City's ability to provide efficient and timely delivery of
services to its constituents and businesses.
WHEREAS, since the beginning of the current Fiscal Year, the City of Santa Ana,
has prepared and solicited over 105 Invitations for Bids (IFB) and Requests for Proposals
(RFP); of which, approximately seventy six percent (76%) were related to a Public Works
Agency project. The Public Works Agency, together with the Finance and Management
Services Agency, finds that revisions to both the City Manager's contract authority and
purchasing requirements regarding its informal and formal bidding process are necessary
to modernize the City's procurement process, increase the pool of companies who bid on
City projects, increase efficiency, expedite project delivery, and closely align the City's
purchasing requirements with newly enacted federal and state guidelines, while also
maintaining local vendor preferences.
WHEREAS, further increasing the City Manager's contracting authority for both
non-public works and public works contracts and other housekeeping changes to the
City's procurement rules and procedures are also desirable because they will free staff
time to devote to other necessary public services and facilitate participation of small local
vendors for the City's business, as the formal process can be time-consuming and costly.
Ordinance No. NS-3041
Page 1 of 8
WHEREAS, further increasing the City Manager's contracting authority for both
non-public works and public works contracts and change orders to such contracts will
also further streamline the process to execute Public Works Agency contracts and
agreements for the construction, rehabilitation, maintenance, testing and inspection of
public infrastructure, thereby improving the delivery of services necessary for the
continued enhancement and preservation of such public infrastructure.
WHEREAS, due to the increasing cost of goods and services as a result of normal,
as well as historic inflation, informal and formal bidding have become more frequent.
Increasing the informal and formal bidding threshold requirement will allow flexibility for
City staff to perform as -needed procurement at local businesses, complete more efficient
project deliveries, and increase overall efficiency with existing resources.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA, DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. The recitals above are each incorporated and adopted as findings by
the City Council.
Section 2. Section 2-748 of Article VII (City Manager's Contracting Authority) of
Chapter 2 (Administration) of the Santa Ana Municipal Code is hereby amended to read
in its entirety 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). 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.
Ordinance No. NS-3041
Page 2 of 8
(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 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.
Sec. 2-749. Reserved.
Section 3. Section 2-803.1 of Article VII.II (Purchasing Rules and Regulations)
of Chapter 2 (Administration) of the Santa Ana Municipal Code is hereby amended to
read in its entirety as follows:
Sec. 2-803.1. Local preference in contracts for materials, supplies, labor and
equipment.
Except for those contracts for which the Charter of the City of Santa Ana prohibits
the provision of a local preference, and/or those contracts funded through programs or
partners which prohibit the use of a local preference, the city council authorizes the
purchasing manager to extend a preference to local business and Orange County
business as set forth herein.
(a) In the procurement of material, supplies, labor and equipment involving
expenditures between fifteen thousand dollars ($15,000) and one hundred
thousand dollars ($100,000.00), the purchasing manager shall extend a
preference to each local business and each Orange County business, which
preference shall be applied to the bid which provides maximum quality at
minimum price. Said preference shall be set by resolution of the city council.
(b) If the bidder submitting the maximum quality at minimum cost bid is not a local
business or an Orange County business, and if a local business or an Orange
County business has submitted a responsive and responsible bid, and with the
benefit of the applicable preference, the bid submitted by local business or
Orange County business is equal to or less than the original maximum quality at
minimum cost bid, the contract shall be awarded to the local business or the
Ordinance No. NS-3041
Page 3of8
Orange County business at its submitted bid price. If two (2) or more low bids
received are equal after the application of the preference, the contract shall be
awarded in the following order:
(1) To a local business.
(2) To an Orange County business.
(3) To the bidder submitting the maximum quality at minimum cost bid.
The city shall reserve the right to reject any or all bids.
(c) In order for the preference to apply, a bidder must certify under penalty of
perjury, that the bidder qualifies as a local business or Orange County business.
The preference is waived if the certification does not appear on the bid.
Section 4. Section 2-805 of Article VII.II (Purchasing Rules and Regulations)
of Chapter 2 (Administration) of the Santa Ana Municipal Code is hereby amended to
read in its entirety as follows:
Sec. 2-805. Procurement of materials, supplies, labor, and equipment between
five hundred dollars ($500.00) and fifty thousand dollars ($50,000).
(a) For agreements exceeding five hundred dollars ($500.00) but not exceeding
fifteen thousand dollars ($15,000), the city manager may bind the city on
contracts for materials, supplies, labor, and equipment in amounts not exceeding
fifteen thousand dollars ($15,000) in any one contract, with any one vendor or
service provider. These contracts can be entered into administratively without
the need for informal or formal bidding.
(b) Unless exempt from bidding pursuant section 2-807, all contracts involving an
expenditure between fifteen thousand dollars ($15,000) and fifty thousand dollars
($50,000) for materials, supplies, labor, and equipment shall be let on the basis
of obtaining maximum quality at minimum cost in accordance with procedures
established by the purchasing manager. Those procedures shall provide for at a
minimum the following:
(1) There shall be a written or verbal invitation for bid which shall include the
following information: A general description of the things to be purchased or
project, the time and place for bid opening when applicable, bid instructions,
and the terms and conditions of the bid and any resulting contract. The
purchasing manager shall make a good faith effort to notify all businesses
engaged in providing such materials, supplies, labor, and equipment located
within the boundaries of the city of the opportunity to bid.
Ordinance No. NS-3041
Page 4 of 8
(2) Where required by state or federal law or regulations, or upon request by a
bidder, the bids shall be opened, if sealed, and declared in public at the time
and place stated on the "Invitation for Bid."
Section 5. Section 2-806 of Article VII.II (Purchasing Rules and Regulations) of
Chapter 2 (Administration) of the Santa Ana Municipal Code is hereby amended to read
in its entirety as follows:
Sec. 2-806. Procurement of materials, supplies, labor, and equipment in excess
of fifty thousand dollars ($50,000).
Unless exempt from bidding pursuant to section 2-807, all contracts involving an
expenditure in excess of fifty thousand dollars ($50,000) for materials, supplies, labor,
and equipment shall be let on the basis of obtaining maximum quality at minimum cost,
in accordance with procedures established by the purchasing manager. Those
procedures shall provide for at least the following:
(a) Public notices inviting bids shall include a general description of the things to be
purchased and the date, time, and place for bid opening. Adequate public notice
of the invitation for bids shall be given a reasonable time prior to the date set
forth therein for the opening of bids, in accordance with regulations established
by the purchasing manager. Public notice shall occur as follows:
(1) For all public works contracts, public notice shall occur by way of publication
in a newspaper of general circulation and such publication shall be for at least
two (2) days, the first of which shall be at least ten (10) days before the date
set for opening bids.
(2) For non-public works contracts, public notice shall occur by way of electronic
bidding system for the purpose of receiving sealed electronic bids or
proposed contracts.
(b) Invitation of bids shall be mailed or transmitted by other means established by
the administrative code but not recited over the telephone or in person. Any
interested bidder may obtain an invitation for bid.
(c) All bids shall be submitted sealed in accordance with the instructions contained
in the "Invitation for Bid" form.
(d) The bids shall be opened in public, at the time and place stated on the "Invitation
for Bid." All bids shall be publicly declared.
Section 6. Section 2-807 of Article VII.II (Purchasing Rules and Regulations) of
Chapter 2 (Administration) of the Santa Ana Municipal Code is hereby amended to read
in its entirety as follows:
Sec. 2-807. Non -bid purchases.
The following contracts may be exempted from competitive bidding through an open
market purchase by the purchasing manager, and confirmed by the city council in the
case of contracts for over fifty thousand dollars ($50,000), but shall nevertheless be
Ordinance No. NS-3041
Page 5 of 8
entered into only after compliance with the rules established by the purchasing manager,
which shall include the review of such alternative sources of supply or performance as
may be available in competition with one another and selection therefrom on the basis of
obtaining maximum quality at minimum costs:
(a) Purchases of materials, supplies, labor, and equipment whenever it shall appear
that there is only one (1) reasonably available source or where solicitation of
bids would for any reason be an idle act.
(b) Purchases of materials, supplies, labor, and equipment necessary for the
preservation of life, health or property, following the declaration of a state of
emergency or disaster in the city. A full written account of emergency
procurements made during the declared emergency or disaster shall be
submitted to the city council within thirty (30) days after their procurement.
(c) Situations where no bids are received or all bids are rejected and the city council
determines, upon the affirmative vote of at least two-thirds C13) of its members,
that the materials, supplies, labor or equipment can be obtained at a lower cost.
(d) Purchases from vendors whose names are on current established lists and have
been awarded the same type of purchase contract by a federal agency (including
the general services administration), a state agency, county, city or other public
agency after a competitive bidding process determined by the purchasing
manager to be substantially equivalent to that prescribed by this article.
(e) Contracts for services.
Section 7. Section 33-203 of Article VIII (Public Works Construction Rules and
Regulations) of Chapter 33 (Streets, Sidewalks and Public Works) of the Santa Ana
Municipal Code is hereby amended to read in its entirety as follows:
Sec. 33-203. Procurement of public works construction.
The following procedure shall apply to every contract for which final plans and
specifications are available in conformance with procurement rules defined in Article VII
and Article VI I.II of Chapter 2 of the Santa Ana Municipal Code:
(a) Notice inviting bids. Notice inviting bids shall include a general description of the
public works construction, the place to obtain the plans and specifications, and
the date, time, and place for opening bids. The notice shall be published in a
newspaper of general circulation in the city for at least two (2) days, the first of
which shall be at least ten (10) days before the date set for opening bids. The
city shall make a good faith effort to send a notice inviting bids to all businesses
engaged in providing labor and materials for such construction located within the
boundaries of the city.
(b) The bid. Included with the plans and specifications for a work of public works
construction shall be the following documents: Instructions to bidder, proposal,
bond samples and the contract. The bidder shall execute the proposal and
contract, and submit them sealed with at least a ten (10) per cent bid bond,
cashier's check or certified check.
Ordinance No. NS-3041
Page 6 of 8
(c) Award of contract. Upon opening the bids at the date, time and place stated in
the notice, the aggregate bid of each bidder shall be publicly declared. Following
the determination of the lowest and best bidder, the proposal and agreement
from this bidder shall be sent to the city attorney for approval as to form. The
documents shall then be presented to the city council for approval and
authorization for execution. If two (2) or more bids received are the same and
the lowest, the council may accept the one it chooses.
(d) Notification of award. A notification letter, a request for bonds, when necessary,
and a copy of the fully executed contract shall be delivered to the successful
bidder.
(e) Performance bonds. To secure faithful performance of the contract, the city
manager is authorized to require security in the form of cash, cashier's check,
certified check or corporate faithful performance bonds, in the following
percentages of the aggregate amount bid: One hundred (100) per cent bond for
faithful performance, and fifty (50) per cent contractor's payment bond.
(f) Rejection of bids. The right to reject all bids is expressly reserved to the city
council. After rejecting such bids, or if no bids are received, the city council may
determine and declare that, in its opinion based on estimates submitted by the
city manager, the public works construction may be performed better or more
economically by the city with its own employees, and after the adoption of a
motion to this effect by the affirmative votes of at least two-thirds (1/3) of the
members of the city council, the council may proceed to have said work done in
the manner stated without further observance of the provision of this article.
Section 8. The City Council finds and determines that this ordinance is not subject
to the California Environmental Quality Act (CEQA). Pursuant to CEQA and the CEQA
Guidelines, the adoption of this Ordinance is exempt from CEQA review pursuant to
sections 15061(b)(3) and 15061(b)(5) of the CEQA Guidelines because it will not result
in a direct or reasonably foreseeable indirect physical change in the environment, as there
is no possibility it will have a significant effect on the environment. As a result,
Environmental Review No. 2023-27 will be filed upon adoption of this ordinance.
Section 9. 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 10. This Ordinance shall become effective thirty (30) days after its
adoption. _
_ Ordinance No. NS-3041
Page 7 of 8
Section 11. The Clerk of Council shall certify the adoption of this Ordinance
and shall cause the same to be published as required by law.
ADOPTED this 6t' day of June. 2023.
APPROVED AS TO FORM
Sonia R. Carvalho City Attorney
By:
J athan T. Martinez
Assistant City Attomey
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
Amezcua, Bacerra, Hernandez, Lopez,
Penaloza, Phan, Vazquez (7)
None (0)
None (0)
NOT PRESENT: Councilmembers None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER L. HALL, City Clerk, do hereby attest to and certify that the attached
Ordinance No. NS-3041 to be the original ordinance adopted by the City Council of the City
of Santa Ana on June 6. 2023 and that said ordinance was published in accordance with
the Charter of the City of Santa Ana.
Date:
er L
erk
City of Santa Ana
Ordinance No. NS-3041
Page 8 of 8
This space for filing stamp only
OR #:
O R A N G E C O U N T Y R E P O R T E R
~ SINCE 1921 ~
600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542
Telephone (714) 543-2027 / Fax (714) 542-6841
PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of Calif ornia )
County of Orange ) ss
Notice Type:
Ad Description:
I am a citizen of the United States and a resident of the State of California; I am
over the age of eighteen years, and not a party to or interested in the above
entitled matter. I am the principal clerk of the printer and publisher of the
ORANGE COUNTY REPORTER, a newspaper published in the English
language in the City of Santa Ana, and adjudged a newspaper of general
circulation as defined by the laws of the State of California by the Superior
Court of the County of Orange, State of California, under date of June 2, 1922,
Case No. 13,421. That the notice, of which the annexed is a printed copy, has
been published in each regular and entire issue of said newspaper and not in
any supplement thereof on the following dates, to-wit:
Executed on: 10/10/2004
At Los Angeles, California
I certify (or declare) under penalty of perjury that the foregoing is true and
correct.
Signature
O R A N G E C O U N T Y R E P O R T E R
~ SINCE 1921 ~
600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701
(714) 543-2027 (714) 542-6841
OR 3704827
NORMA OROZCO
CITY OF SANTA ANA/CITY CLERK
20 CIVIC CENTER PLAZA M-30
SANTA ANA, CA - 92701
ORD - ORDINANCE PUBLICATION
2nd Read Ord - NS-3041
I am a citizen of the United States and a resident of the State of California; I am
over the age of eighteen years, and not a party to or interested in the above
entitled matter. I am the principal clerk of the printer and publisher of the
ORANGE COUNTY REPORTER, a newspaper published in the English
language in the city of SANTA ANA, county of ORANGE, and adjudged a
newspaper of general circulation as defined by the laws of the State of
California by the Superior Court of the County of ORANGE, State of California,
under date 06/20/1922, Case No. 13421. That the notice, of which the
annexed is a printed copy, has been published in each regular and entire issue
of said newspaper and not in any supplement thereof on the following dates,
to-wit:
05/26/2023
05/26/2023
ORANGE
!A000006321209!
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NOTICE OF SECOND READING OF
PROPOSED ORDINANCE
BY THE CITY COUNCIL OF THE
CITY OF SANTA ANA,CA.
The City of Santa Ana encourages the
public to participate in the decision-
making process.The following notice
is being provided so that you can ask
questions,make comments,and stay
informed about changes in land use,
fees,or other projects that might be
important to you.We encourage you to
contact us if you have any questions.
NOTICE IS HEREBY GIVEN -The City
Council of the City of Santa Ana will
consider adopting an ordinance.The title
of the ordinance is as follows:
ORDINANCE NO.NS-3041 -AN
ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA
AMENDING ARTICLES VII AND VII.II OF
CHAPTER 2 OF THE SANTA ANA
MUNICIPAL CODE REGARDING CITY
MANAGER'S CONTRACTING
AUTHORITY AND CITY PURCHASING
RULES AND REGULATIONS,AND
ARTICLE VII OF CHAPTER 33 OF THE
SANTA ANA MUNICIPAL CODE
REGARDING PUBLIC W ORKS
CONSTRUCTION RULES AND
REGULATIONS
Meeting Time and Date:This matter will
be heard on the Consent Calendar on
Tuesday,June 6,2023 at 5:45 p.m.or
thereafter in the City Council Chamber,22
Civic Center Plaza,Santa Ana,California
92701.All interested persons can refer to
the following link for more information and
instructions for participating in the meeting
www.santa-ana.org/cc/city-meetings.
How To Make Comments:If you are
unable to participate in the meeting,you
may send written comments by email to
eComment@santa-ana.org (reference the
Agenda #in the subject line)or mail to
Jennifer L.Hall,City Clerk,City of Santa
Ana,20 Civic Center Plaza –M30,Santa
Ana,CA 92701.All written
communications received two hours prior
to the scheduled start time on the day of
the meeting will be distributed to the City
Council and imaged into the City's
document archive system which is
available for public review.
Who To Contact For Questions:Should
you have any questions,please contact
the City Clerk's Office at 714-647-6520
during regular business hours.
Where To Get More Information:All
staff reports regarding any item on this
agenda are available for public inspection
in the City Clerk's Office during regular
business hours and posted on the City's
website the Tuesday before a Council
meeting at:www.santa-ana.org/cc/city-
meetings.
Ordinance Second Reading Adoption
Process:Ordinances become effective
30 days after second reading by the City
Council.Most ordinances are codified into
the Santa Ana Municipal Code and
become city laws.
Si tiene preguntas en Español,favor de
llamar al (714)647-6520.
N u c n liên l c b ng ti ng Vi t,xin
i n tho i cho Tony Lai s (714)565-
2627.
Jennifer L.Hall,CMC
City Clerk
Publish Orange County Reporter -Legal
Section;
Date:May 26,2023
5/26/23
OR-3704827#