Santa Ana Municipal Code § 2-801 Reserved

These purchasing rules and regulations are hereby adopted in order to:

(1) Establish efficient procedures for purchasing of materials, supplies, labor and equipment;

(2) Secure maximum quality goods, services or performance at minimum cost for the city;

(3) Exercise positive financial control over the city's purchases; and

(4) Establish the necessary procedures for the selection of providers of all ranges of goods and services so as to avoid favor or prejudice.

(5) To simplify, clarify, and modernize the law governing procurement by the City;

(6) To provide for increased public confidence in the procedures followed in public procurement;

(7) To ensure the fair and equitable treatment of all persons who deal with the procurement system of the City;

(8) To foster effective broad-based competition within the free enterprise system;

(9) To provide safeguards for the maintenance of a procurement system of quality and integrity; and

(10) To obtain in a cost-effective and responsive manner the materials, services, and construction required by City agencies in order for those agencies to better serve the City's businesses and residents.

(Ord. No. NS-2502, § 3, 7-1-02; Ord. No. NS-2742, § 4, 5-7-07)

Editor's note— Ord. No. NS-2963, § 3, adopted March 19, 2019, repealed § 2-801. Former § 2-801 pertained to city manager's authority to approve change orders and derived from Ord. No. NS-2502, adopted July 1, 2002 and NS-2717, adopted July 3, 2006. Similar provisions can be found in § 2-748.

For purposes of this article, the following definitions shall apply:

Agency shall mean the executive director of the city agency or department which has responsibility for awarding a contract for services.

Agreement or contract shall mean a legal contract which complies fully with the provisions of Section 421 of the City's Charter and this article. The words agreement and contract may be used interchangeably in this article.

Electronic shall mean electrical, digital, magnetic, optical, electromagnetic, or any other similar technology.

Local business shall mean a business certified by the state department of general services as a small business, which has a substantial presence through either a headquarters or branch office within the geographical boundaries of the city, and which headquarters or branch office was established prior to the city inviting bids for the respective procurement. Said business must possess a current business license and certificate of occupancy. For purposes of this article, a post office box address within the city shall not qualify as a valid business location.

Materials, supplies, labor and equipment shall mean those goods or services, but excluding services and public works construction, that are readily ascertainable and measurable by an objective standard in terms of quantity or quality so as to be susceptible to competitive bidding.

Orange County business shall mean a business certified by the state department of general services as a small business, which has a substantial presence through either a headquarters or branch office within the geographical boundaries of Orange County, and which headquarters or branch office was established prior to the city inviting bids for the respective procurement. Said business must possess a current business license to perform work in Santa Ana. For purposes of this article, a post office box address within the county shall not qualify as a valid business location.

Public notice shall mean the distribution or dissemination of information to interested parties using methods that are reasonably available. Such methods can include publication in newspapers of general circulation, electronic or paper mailing lists, and web site(s) designated by the city and maintained for that purpose.

Purchasing manager shall mean that city employee or official so designated by the city manager and authorized to carry out the responsibilities under this article, including the promulgation and enforcement of administrative procedures.

Purchase order (PO) shall mean that standardized contract developed pursuant to subsection 2-803(j) issued to the vendor of materials, supplies, labor and equipment.

Services shall mean the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. Services are of an advisory nature, provide a recommended course of action or personal expertise, have an end product comprised of a transmittal of information, written or verbal, and that is related to the governmental functions of administration, management, program management or innovation. The product may include anything from answers to specific questions to design of a system or plan, and includes provision of workshops, seminars, retreats, and conferences for which expertise is necessary. This term shall not include employment agreements or collective bargaining agreements. This term shall not include contracts for the construction, alteration, improvement, repair, or maintenance of real or personal property.

(Ord. No. NS-2502, § 3, 7-1-02; Ord. No. NS-2742, § 5, 5-7-07; Ord. No. NS-2828, § 3, 3-19-12)

The city manager is directed to establish and maintain a centralized purchasing system, and in connection therewith, the city manager shall designate a purchasing manager for the city whose duties shall include, but not be limited to, the following:

(a) Act to procure for the city the needed quality in materials, supplies, labor, and equipment, and services including professional services, at the least expense to the city.

(b) Recommend execution of contracts.

(c) Endeavor to obtain as full and open competition as possible on all purchases.

(d) Keep informed of current developments in the field of purchasing, prices, market conditions and new products.

(e) Establish rules and procedures governing the purchase of materials, supplies, labor, equipment and services, for the city through the preparation and adoption of an administrative code which shall provide for 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.

(f) Prescribe and maintain such forms as are reasonably necessary for the operation of this article.

(g) Keep or cause to be kept an inventory of all municipal property in his or her custody.

(h) If required by federal, state or other law, cause notices inviting bids to be published.

(i) Endeavor to establish standards in the variety of articles, materials, supplies, labor, and equipment, commonly used by the various departments and agencies, as will make possible uniform purchases, when consistent with efficiency.

(j) Prepare, with the approval of the city attorney as to form, a pre-printed purchase order to be utilized in contracts for materials, supplies, labor and equipment.

(Ord. No. NS-2502, § 3, 7-1-02; Ord. No. NS-2742, § 6, 5-7-07)

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 ($15,000.00) 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 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.

(Ord. No. NS-2828, § 4, 3-19-12; Ord. No. NS-3041, § 3, 6-6-23)

The city manager reporting requirements mandated by Section 421 of the City Charter shall only include contracts let that exceed five hundred dollars ($500.00), all other contracts let by the city manager under five hundred dollars ($500.00) shall be provided to the city council if requested by a councilmember.

(Ord. No. NS-2742, § 7, 5-7-07)

Editor's note— Ord. No. NS-2742, § 7, adopted May 7, 2007, amended § 2-804 in its entirety to read as herein set out. Formerly, § 2-804 pertained to procurement of materials, supplies, labor, and equipment under five hundred dollars ($500.00), and derived from Ord. No. NS-2502, § 3, adopted July 1, 2002.

(a) For agreements exceeding five hundred dollars ($500.00) but not exceeding fifteen thousand dollars ($15,000.00), the city manager may bind the city on contracts for materials, supplies, labor, and equipment in amounts not exceeding fifteen thousand dollars ($15,000.00) 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 ($15,000.00) and fifty thousand dollars ($50,000.00) 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.

(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."

(Ord. No. NS-2742, § 8, 5-7-07; Ord. No. NS-2828, § 5, 3-19-12; Ord. No. NS-3041, § 4, 6-6-23)

Editor's note— Ord. No. NS-2742, § 8, adopted May 7, 2007, amended § 2-805 in its entirety to read as herein set out. Formerly, § 2-805 pertained to procurement of materials, supplies, labor, and equipment between five hundred dollars ($500.00) and ten thousand dollars ($10,000.00), and derived from Ord. No. NS-2502, § 3, adopted July 1, 2002.

Unless exempt from bidding pursuant to section 2-807, all contracts involving an expenditure in excess of fifty thousand dollars ($50,000.00) 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.

(Ord. No. NS-2742, § 9, 5-7-07; Ord. No. NS-2828, § 6, 3-19-12; Ord. No. NS-3041, § 5, 6-6-23)

Editor's note— Ord. No. NS-2742, § 9, adopted May 7, 2007, amended § 2-806 in its entirety to read as herein set out. Formerly, § 2-806 pertained to procurement of materials, supplies, labor, and equipment in excess of ten thousand dollars ($10,000.00), and derived from Ord. No. NS-2502, § 3, adopted July 1, 2002.

(a) Notwithstanding the bidding provisions of this chapter, reverse auctions may be utilized for the acquisition of goods and services. The reverse auction process shall include a specification of an opening date and time when real-time electronic bids may be accepted, and provide that the procedure shall remain open until the designated closing date and time.

(b) All bids on reverse auctions shall be posted electronically on the Internet, updated on a real-time basis, and shall allow registered bidders to lower the price of their bid below the lowest bid posted on the Internet.

(c) The purchasing manager shall require vendors to register before the reverse auction opening date and time, and as part of the registration, agree to any terms and conditions and other requirements of the solicitation. The purchasing manager may require vendors to be prequalified prior to placing bids in a reverse auction.

(d) For purposes of this section, "reverse auction" means a competitive online solicitation process for fungible goods or services in which vendors compete against each other online in real time in an open and interactive environment.

(e) The reverse auction process may not be used for bidding on any construction contract that is subject to Section 422 of the City Charter.

(Ord. No. NS-2742, § 10, 5-7-07)

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 ($50,000.00), but shall nevertheless be 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 (⅔) 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.

(Ord. No. NS-2502, § 3, 7-1-02; Ord. No. NS-2742, § 11, 5-7-07; Ord. No. NS-2770, § 3, 8-18-08; Ord. No. NS-3041, § 6, 6-6-23)

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 agency to extend a preference to local business and Orange County Business as set forth herein.

(a) Contracts for services shall be awarded on the basis of demonstrated competence and on the professional qualifications necessary to for the satisfactory performance of the services required. In evaluating proposals for service contracts in amounts up to one hundred thousand dollars ($100,000.00), proposers which qualify as local business or Orange County business shall be eligible for preference points. The preference shall be added to the proposal to reach a final score in determining the most advantageous proposal. Said preference shall be set by resolution of the city council.

(b) A non local proposer associating with a local business or Orange County business, shall be eligible for the local preference if a minimum of fifty (50) percent of the contract value will be performed by the local business or Orange County business.

(Ord. No. NS-2828, § 7, 3-19-12)

(a) The city council for the City of Santa Ana has made the following determinations:

(1) The military equipment identified in Santa Ana Police Department Policy 707 is necessary, because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety.

(2) The military equipment use policy will safeguard the public's welfare, safety, civil rights, and civil liberties.

(3) The military equipment identified in the military equipment use policy is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

(4) All prior military equipment use complied with the city's policies that were in effect at the time.

(b) The Santa Ana Police Department shall submit an annual military equipment report to the city council, containing the information required in Government Code Section 7072, and the city council shall determine whether each type of military equipment identified in that report has complied with the standards for approval set forth in (a)(1)—(4) above.

(c) The city council approves the use of the Santa Ana Police Department Policy 707, and finds that it satisfies the requirements of Government Code Section 7070.

(Ord. No. NS-3020, § 3, 5-17-22)