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HomeMy WebLinkAboutItem 28 - Ordinance Amending Chapter 2 of the Santa Ana Municipal Code Related to Procurement and ContractingPublic Works Agency www.santa-ana.org/pw 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 Page 1 of 3 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 Page 2of3 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 Page 3of3