§ 2-9.110. General contracting provisions.

(a)

Contract authority limits. For purposes of this chapter, contract or purchasing authority directly provided through this chapter to specified city officials accrues on a yearly basis. Any purchases, or renewals of contracts or purchases, or services with the same party or parties for the same or related project or item within any twelve (12) month period which in the aggregate would exceed the contract authority limits in this chapter, require approval by the City Council, or if such purchase is subject to the authority of the Purchasing Agent, by the City Manager, unless either: 1) a new competitive process has been used; or 2) an exemption from competitive process under Section 2-9.201(e) applies; or 3) in the case of a Department Head purchase exceeding aggregate limits, the purchase is approved by the Purchasing Agent. Contracts are valued by the amount of compensation provided or received by the City, and including any optional renewals; contracts based on a commission or percentage basis are valued on a reasonable estimate of the likely compensation to be received or provided. After consecutive renewals up to an aggregate term of three (3) years, for contracts or purchases in which at least one year's expenditure exceeds $7,500.00, if a new competitive process has not been used or an exemption therefrom does not apply to a contract; or more than six (6) months have not passed after the expiration of the contract or purchase, and further provided that, the total amount expended exceeds the one year authority limit for the signing authority, any further renewals must be approved by the City Council, if subject to the City Manager's authority, or the City Manager, if subject to the Purchasing Agent's authority.

(b)

Contract term. Any contract with a term longer than five (5) years including any optional renewals, regardless of contract amount, shall be approved by the City Council, unless otherwise specified in this chapter.

(c)

Change orders and amendments. The City Manager has authority to approve change orders and amendments to contracts approved by the City Council up to ten (10%) percent or $100,000.00 of the original contract amount, whichever is less, and may further amend the term of such contracts, when the work is reasonably related to the scope of work authorized under the original contract.

(d)

Delegation. City personnel authorized in this chapter may delegate the authority granted in this chapter whenever such delegation is deemed necessary or desirable for the efficient administration of purchasing and contracting activities.

(e)

Purchases involving grant funds. The Purchasing Agent can authorize contracting, bidding and purchasing procedures required by the terms of any federal or state grant terms which may differ from the requirements of this chapter.

(f)

Gifts or grants to City. The City Manager may accept, and sign any necessary documents related thereto, gifts or grants to the City which do not exceed $10,000.00, and which do not involve policy decisions or significant additional expenditures as determined by the City Manager.

(g)

Method of contracting. The City may utilize purchase orders, purchasing cards, written contracts, or verbal purchases (in the case of verbal purchases only, up to a limit of $1,000.00). The Purchasing Agent, with the approval of the City Manager, may specify further parameters and limits for each method of contracting. The City Attorney shall review and approve all standard purchase order forms to be utilized by the City, and shall approve as to form any written contract above an amount set by the Purchasing Agent.

(h)

Regulatory penalties. The City Manager is authorized to accept, pay and sign all documents related to regulatory penalties or fines incurred in the regular course of business up to $10,000.00, unless policy decisions are implicated in the payment of such penalties as determined by the City Manager.

(i)

Land or real estate interests. The sale, purchase, acceptance or rental of real estate or interests in land, excepting licenses, shall be approved by the City Council, except that the City Manager may approve transactions involving certain real property interests, including but not limited to fee interests, easements, offers of dedication and rights of entry ("Development Real Estate Interests"), provided that such Development Real Estate Interests are part of or directly related to a land use action, environmental mitigation, public works project, entitlement or agreement previously approved by the City, including but not limited to subdivision maps, building permits, or zone changes, or if the right of entry or easement is temporary for a City purpose such as maintenance or other work for the public benefit. When any transaction involving real property is approved by an official specifically authorized under this Code, the City Manager or the City Council, the City Manager or designee is authorized to sign any certificate of acceptance required under Government Code 27281 to be recorded.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)