City Council approval is required for all city contracts for goods, services, and public projects unless otherwise specified in this chapter, the LMC, or in another provision of federal or state law.
(Ord. 2159 § 3 (Exh. A), 2024)
No city contract for goods, services, or public projects shall be awarded or signed for the city unless there exists an underlying and unencumbered budget appropriation in the fiscal year that the contract is awarded and signed. Contracts awarded in a fiscal year that are anticipated to extend into a subsequent fiscal year or years may be awarded by a person or body with the appropriate approval authority for the total compensation amount specified in the contract, but the contract shall be subject to the appropriation requirements specified in this section for subsequent years. Absent an existing unencumbered budget appropriation at the time of contract award, then a supplemental appropriation by the City Council is required before the city contract can be awarded and signed for the city.
(Ord. 2159 § 3 (Exh. A), 2024)
A.
General. All city contracts for goods, services, and public projects shall only be awarded and signed by a person or body with the appropriate approval authority for the city as set forth in this section or as otherwise authorized by City Council resolution. Likewise, all amendments to contracts for goods and services, and all change orders to public works contracts, shall only be signed by a person or body with the appropriate approval authority as set forth herein.
B.
Approval Authority. The authority to award, approve, and sign city contracts for goods, services, and public works projects for the city is as follows:
1.
City Council. The City Council shall be the contract approval authority to award the following contracts by resolution, and may duly authorize a city officer or employee to sign the contracts for the city after City Council approval:
a.
Contracts for goods and services that have a compensation amount greater than $200,000.
2.
City Manager. The City Manager shall be the contract approval authority for:
a.
Contracts for goods and services that have a compensation amount up to $200,000, and amendments to contracts for goods and services as set forth in LMC § 2.68.230.
c.
Goods and services contracts, the cost of which will be fully paid or reimbursed to the city, regardless of the compensation amount.
d.
Contracts with public agencies or public utility companies regarding construction of public improvements or utility facilities, or for community social or recreational services, or for the use of city property or facilities in accordance with established administrative regulations and guidelines, which require no payment of money by the city in excess of $200,000 or which provide for payment of money to the city under each contract.
e.
The City Manager's authority to enter into contracts and other documents for the city to settle litigation, government claims, and administrative proceedings is set forth in Chapter 3.40 LMC.
f.
For operational efficiency and effectiveness, the City Manager may:
i.
Delegate the approval authorities specified in this subsection to department heads as set forth in LMC § 2.68.250, which delegations shall be reflected in writing and incorporated into the City Manager's administrative regulations.
ii.
Approve, or delegate the approval, for the assignment of city contracts by a consultant, contractor, or vendor to a respective successor upon determining that the successor has the qualifications to satisfy the contract's requirements and the successor has been assigned and has assumed all responsibilities in the contract owed to the city. Delegations shall be reflected in writing and incorporated into the City Manager's administrative regulations, and all assignment approvals shall be in writing and retained with the contract.
iii.
Approve, or delegate the approval, for a consultant, contractor, or vendor's use of a subcontractor. Delegations shall be reflected in writing and incorporated into the City Manager's administrative regulations, and all subcontractor approvals shall be in writing and retained with the contract.
3.
City Attorney. The City Attorney shall be the contract approval authority for:
a.
Contracts for goods and services related to the activities or functions of the office of the City Attorney that have a compensation amount up to $150,000, and amendments to those contracts consistent with LMC § 2.68.230.
b.
Contracts to appoint and retain outside legal counsel to prosecute lawsuits for the city or defend the city against lawsuits regardless of the compensation amount but subject to budget appropriation. The City Attorney's authority to enter into contracts and other documents for the city to settle litigation, government claims, worker's compensation claims, and administrative proceedings is set forth in Chapter 3.40 LMC.
c.
Contracts for the city's membership in public agencies organized and operating under California Government Code Section 6507 and related provisions of law that authorize the creation and operation of governmental joint powers authorities under California law to self-insure and pool resources for excess losses, regardless of the compensation amount but subject to budget appropriation.
d.
Contracts for insurance to protect and cover city facilities and operations, and for trust accounts maintained to satisfy the city's trust fund requirements for its excess liability pools, regardless of the compensation amount but subject to budget appropriation.
(Ord. 2159 § 3 (Exh. A), 2024; Ord. 2168 § 3(A) – (C), 2024)
A.
All contract amendments must be in writing, signed by a person or body with the appropriate approval authority specified in LMC § 2.68.220, and properly filed and stored with the original contract in accordance with the city's records retention schedule. Oral contract amendments are specifically prohibited and shall not be binding on the city.
B.
All amendments to contracts for goods and services, and change orders to public works contracts, shall be approved by the City Council or an officer or employee with the appropriate approval authority as set forth in either: (1) LMC § 2.68.220 based upon the compensation amount in the amended contract, or as set forth; or (2) based upon the authority duly authorized by the City Council by resolution.
(Ord. 2159 § 3 (Exh. A), 2024)
To account for unforeseen conditions that may impact the scope of work, pricing offered, quantity of goods or terms in a contract for goods and services, the City Manager has authority for an additional contract contingency amount not to exceed $20,000, which is in addition to the approval authority set forth in LMC § 2.68.220, that may be used in the City Manager's discretion to approve an amendment to a contract for goods and to ensure successful contract completion.
(Ord. 2159 § 3 (Exh. A), 2024)
The contract approval authorities set forth in LMC § 2.68.220 may be delegated as follows:
A.
The City Manager may delegate contract approval and amendment authority in writing to a department head or other city employee if such delegation is deemed necessary for effective procurement. Such delegated contract approval authority shall not exceed the City Manager's contract approval authority in LMC § 2.68.220.
B.
The City Attorney may delegate contract approval and amendment authority in writing to other employees in the City Attorney's office if such delegation is deemed necessary for effective procurement. Such delegated contract approval authority shall not exceed the City Attorney's contract approval authority in LMC § 2.68.220. However, the City Attorney may only delegate the authority to review and approve contracts, bonds, or security as to form to attorneys within the City Attorney's office or otherwise designated by the City Attorney.
C.
The Administrative Services Director may delegate contract approval and amendment authority in writing to other employees in the Administrative Service Department if such delegation is deemed necessary for effective procurement. Such delegated contract approval authority shall not exceed the Administrative Services Director's contract approval authority in LMC § 2.68.220.
(Ord. 2159 § 3 (Exh. A), 2024)
Nothing in this chapter requires the city to award a contract for goods, services, or public works if the person or body with the appropriate approval authority for the contract determines, in that person or body's discretion, that the award of the contract is not in the best interest of the city, and that person or body rejects all bids.
(Ord. 2159 § 3 (Exh. A), 2024)