Part 3 — CONTRACTING AUTHORITY

The Procurement Officer may award and sign the following contracts:

(a) Public Works Contracts. Public works contracts, where the term does not exceed three years, and the contract priceand any price contingency established for change orders, but excluding sales tax or use tax, do not exceed $85,000.00 in the first contract year, and do not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(b) Contracts for Goods. Contracts to purchase goods, where the term does not exceed three years, and the contract price and any price contingency established for change orders, but excluding sales tax or use tax, do not exceed $85,000.00 in the first year, and do not exceed the sum of $85,000.00and any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(c) General Services Contracts. General services contracts, where the term does not exceed three years, and the contract priceand any price contingency established for change orders or additional services, but excluding sales tax or use tax, do not exceed $85,000.00 in the first contract year, and do not exceed $85,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(d) Professional Services Contracts. Professional services contracts, where the term does not exceed three years, and the contract price, and any price contingency established for additional services, but excluding sales tax or use tax, do not exceed the sum of $85,000.00 in the first contract year, and do not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(e) Software and Hardware Purchase, Licensing, Maintenance and Support Contracts. Notwithstanding Subsection 2.30.200(c), the Procurement Officer may award and sign contracts other than general services agreements, including, without limitation, vendor-based standard form hardware and software purchase and licensing contracts, for the purchase of hardware and software, the licensing of software, and the maintenance and support of hardware and software, where the term of licensing or maintenance and support services does not exceed five years and the contract price, excluding sales tax or use tax, does not exceed $85,000.00 per year in the first contract year and does not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year. The contracts referred to herein may include contracts for data storage services, which shall be subject to the city's information security policies, terms, conditions and other requirements established by the chief information officer with the concurrence and approval of the City Attorney.

(Ord. 5494 § 9, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

The City Manager may award and sign the following contracts:

(a) Public Works Contracts. Public works contracts, where the term does not exceed three years, and the contract price and any price contingency established for change orders, but excluding sales tax or use tax, do not exceed $250,000.00 in the first contract year, and do not exceed the sum of $250,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(b) Contracts for Goods. Contracts to purchase goods, where the term does not exceed three years and the contract price and any contingency established for change orders, but excluding sales tax or use tax, do not exceed $250,000.00 in the first contact year, and do not exceed the sum of $250,000.00 and any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(c) General Services Contracts. Contracts for services associated with the leasing or licensing of personal property other than hardware or software, where the term does not exceed seven years, and the contract price and any price contingency established for change orders, but excluding sales tax or use tax, do not exceed $85,000.00 in the first contract year, and do not exceed the sum of $85,000.00 plus any unexpended monies carried forward from a prior contract year, in any subsequent contract year.

(d) Contracts for Studies and Services Related to Private Development. Professional services contracts for: (1) the preparation of environmental assessments or other studies deemed necessary by the director of planning and development services for the processing of applications for private development projects, or (2) inspection and plan review services deemed necessary by the director of planning and development services to evaluate conformity of private development projects with applicable building codes, regardless of the cost or term thereof, provided the applicant for the private development project agrees, in writing, to bear responsibility for the entire contract cost, and the contract does not require the expenditure of city funds in any amount.

(e) Rewards. The City Manager may offer and pay rewards where the amount of the reward does not exceed $25,000.00, in accordance with the procedures of Section 2.30.800.

(f) Emergency Contracts. The City Manager is authorized to expend city funds for emergency contracts, as defined in Section 2.30.160, without limitation on the contract cost or amount and without following the contract solicitation and award procedures otherwise required by this chapter, provided that any procurement of goods and services obtained during an emergency declared by the Federal Emergency Management Agency shall comply with applicable FEMA Public Assistance Program's procurement orders, rules, regulations, guidelines and control procedures for cost reimbursement purposes. Expenditures made during an emergency must be reported to the Council at the next regular meeting if approval for such expenditures would otherwise have been made by the Council. The City Manager may issue a verbal report to the Council before a written report is delivered.

(g) Contracts to Rent, Lease, License, Acquire, Transfer or Purchase Interests in Real Property from Other Parties. Contracts for the rental, leasing, licensing, or purchase by installment interests in real property from other parties for a term of seven years or less, where the contract price does not exceed $85,000.00 per year, or to encumber or transfer any interest in real property from other parties for any term of years. The City Manager may enter into and sign a contract to acquire or purchase an interest in real property, where the contract price does not exceed $85,000.00.

(h) Contracts to Rent, Lease, or License City Real Property to Other Parties. The authority granted under this Section is distinct from the authority of the director of community services to grant individuals and groups permits for the exclusive temporary use of buildings and facilities located in, and the areas of, city parks and open spaces, as described in Chapter 22.04 of this municipal code or in the park and open space regulations. The City Manager may award and sign contracts to rent, lease or license city real property to other parties regardless of the price for a term not exceeding three years. Notwithstanding the preceding sentence, the City Manager may enter into and sign contracts for the rental, lease or licensing of real property at the Cubberley Community Center for terms of up to five years.

(i) Contracts to Provide Municipal Services to other Public Entities or Utilities. A contract to provide municipal services and functions to any other public agency, public utility or other public entity in any amount for a term not exceeding three years, provided the contract is in compliance with all Council-adopted policies covering such contracts. The authority granted herein does not include the authority of the City Manager to add permanent employee positions.

(j) Contracts Providing for Indemnity or Risk of Loss. The City Manager, with the concurrence and approval of the City Attorney and the insurance risk manager, may enter into and sign contracts, otherwise within the limits of his or her authority under Section 2.08.140 of this municipal code, that provide for the city or its officers or employees to defend, indemnify, or assume the risk of damage, loss, or liability for, or subrogate to any other contracting party respecting claims, demands, actions, losses or liabilities arising from the city's performance or non-performance under the contract.

(k) Wholesale Utility Commodities and Services Contracts. Wholesale utility commodities and services contracts, where the term does not exceed five years and the contract price does not exceed $250,000.00 in any contract year.

(l) Software and Hardware Purchase, Licensing, Maintenance and Support Contracts. Notwithstanding Subsection 2.30.210(c), the City Manager may award and sign contracts other than general services agreements, including, without limitation, vendor-based standard form hardware and software purchase and licensing contracts, for the purchase of hardware and software, the licensing of software, and the maintenance and support of hardware and software, where the term of licensing or maintenance and support services does not exceed seven years and the contract price, excluding sales tax or use tax, does not exceed $85,000.00 per year in the first contract or fiscal year and does not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior fiscal year, in any subsequent contract or fiscal year. The contracts referred to herein may include contracts for data storage services, which shall be subject to the city's information security policies, terms, conditions and other requirements established by the chief information officer with the concurrence and approval of the City Attorney.

(m) Contracts with a business operator implementing business tax offsets under Section2.37.080.

(n) Other Contracts. All other types of contracts for which the contract term does not exceed three years and the total expenditure by the city does not exceed $85,000.00 in the first contract or fiscal year, and does not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior fiscal year, in any subsequent contract or fiscal year.

(Ord. 5494 §§ 3, 10, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004: Ord. 5607 § 2, 2024)

The City Attorney may award and sign contracts for legal services, including, without limitation, services provided by outside counsel, investigators, consultants and other experts needed for litigation or other administrative and legal proceedings, to be provided to the city for any time period, where the contract price and any contingency established for additional services, but excluding sales tax or use tax, do not exceed the sum of $85,000.00 in the first contract or fiscal year, and do not exceed the sum of $85,000.00 and any unexpended monies carried forward from a prior fiscal year, in any subsequent contract or fiscal year. In addition to the authority described herein, the City Attorney may sign contracts, where the contract price exceeds the amounts set forth above, provided the Council has first approved the use of such services.

(Ord. 5494 § 11, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

The City Manager, the director of utilities and their designated employees may enter into and execute transactions for wholesale utilities commodities and services in accordance with the authority, limits and procedures set forth in the Energy Risk Management Policies Guidelines and Procedures Manual, as amended from time to time. Employees authorized under this section shall be authorized in writing and the written authorizations shall be kept on file by the Procurement Officer.

(Ord. 5494 § 12, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

Employees authorized, in writing, by their department heads may award and sign contracts for the purchase of goods and the procurement of general services, where the contract price does not exceed $10,000.00 and the contract term does not exceed one year. All purchases and procurements shall be made in accordance with the contracting procedures and requirements contained in this chapter and in the purchasing manual. The written authorizations of department heads shall be kept on file by the Procurement Officer.

(Ord. 5494 § 14, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

Employees designated in writing by their department heads, including by completed P-card authorization request form, may make purchases by using petty cash or make payments by using a city P-card or other credit card. All purchases shall be made in accordance with the contracting procedures and requirements contained in this chapter and in the purchasing manual. The written authorizations of department heads shall be kept on file by the Procurement Officer.

(Ord. 5494 § 14, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

The Council shall approve or award and the mayor or vice-mayor shall sign all contracts for which no contracting or signature authority has been established under this chapter, unless the Council has authorized a city officer or employee to negotiate and execute a contract on the city’s behalf without the further approval of the Council.

(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

Any contract with a term exceeding one year shall not be approved by any city employee with contracting authority under this chapter or the Council, unless the total amount due and payable by the city over the life of the contract is appropriated at the time the city assumes the obligation to pay, or the total amount due and payable during the first full or partial fiscal year of a multi-fiscal year contract is appropriated and the contract is subject to annual appropriation by the Council of amounts to become due and payable in subsequent fiscal years. The requirements of this Section do not apply to contracts not subject to the debt limit requirements of Article XVI, section 18 of the California Constitution as determined by the City Attorney or designee.

(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

This Section establishes the exclusive source of authority to delegate any authority to contract granted by this chapter. The authority to delegate contracting authority shall not be implied from any other provision of this municipal code.

(a) Procurement Officer Delegations. The Procurement Officer may delegate the authority granted under Section 2.30.200, as follows: a city employee holding the position of contract manager or senior buyer may be authorized to award and sign any contract in an amount of $50,000.00 or less per year with a term not to exceed three years; and a city employee holding the position of buyer may be authorized to award and sign any contract in an amount of $25,000.00 or less per year with a term not to exceed three years.

(b) City Manager Delegations. The City Manager may delegate the authority to contract granted to the City Manager by this chapter or Section 2.08.140(a)(3) and (5) of this municipal code to an Assistant City Manager and to the Director of Administrative Services, and, as to wholesale utility commodities and services contracts and transactions issued thereto, the City Manager may delegate to the Director of Utilities. If an Assistant City Manager, the Director of Administrative Services, or the Director of Utilities is unable to exercise the authority delegated to him or her due to legal or physical incapacity, constraint, or unavailability, the City Manager may, with the prior concurrence of the City Attorney, delegate the authority to any other city employee.

(c) City Attorney Delegations. The City Attorney may delegate any authority to contract granted to the City Attorney by this chapter to a city employee holding the position of chief assistant city attorney or, if the chief assistant city attorney is unavailable, assistant city attorney.

(d) Delegations to be Written. All delegations of authority shall be in writing, be dated, and describe the limits of the authority delegated, including, without limitation, the type, dollar amount, quantity of goods, the scope of services or authority, and the term of the contracts that may be executed under the delegation. All delegations of authority shall be kept on file by the Procurement Officer.

(Ord. 5427 § 2, 2018: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

(a) Each employee with contracting authority conferred by this chapter may authorize and sign amendments or change orders to contracts he or she awarded under the authority granted in this chapter subject to the following:

(1) All modifications to contracts, including, without limitation, changes to the scope of work, quantity of goods, price or term shall be made in writing and accomplished in accordance with the terms of the original contract;

(2) The amendment or change order to a contract shall not cause the contract, as modified, to exceed the monetary or term limits of that city employee's contracting authority, as described in this chapter, except that the city employee may extend the term of a contract, with no increase in the compensation payable, for a period not to exceed six consecutive months beyond the term limits of his or her contracting authority; and

(3) For contracts awarded under an exemption from competitive solicitation pursuant to Section2.30.360 or by Council action, the amendment or

change order to a contract shall not cause the contract, as modified, to exceed the scope of the exemption from competitive solicitation.

(b) Each city employee with contacting authority conferred by this chapter shall have the authority to terminate the contract in accordance with the contract's terms and conditions.

(Ord. 5494 § 15, 2020: Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

(a) The Council, at the time it awards a contract or authorizes a city officer or employee to award a contract, may also authorize the city officer or employee to execute an amendment or change order to a contract in an amount exceeding the monetary or term limits of the officer or employee’s contracting authority, as described in this chapter. Amendments or change orders made under the authority granted by the Council shall be accomplished in accordance with the terms of the original contract or the original contract, as amended, and shall not cause the contract, as modified, to exceed the limits of the contracting authority granted by the Council.

(b) The City Manager is authorized to enter into and execute on behalf of the city, without the prior approval of the Council, any amendment or change order to a contract, previously approved by the Council, that does not increase the compensation payable under the contract or to accomplish the following:

(1) To extend the term of the contract for a period not to exceed six consecutive months from the last Council-approved contract expiration date;

(2) To make minor revisions to the scope of services or delivery schedule; or

(3) To make clerical corrections.

(c) The City Manager may approve and sign assignments of contracts, including, without limitation, leases and licenses, previously approved by the Council when he or she has determined that the proposed assignee has the ability, capacity, experience and skill and is otherwise qualified to perform the contract.

(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)

(a) This chapter does not authorize a city officer or employee to award or sign any contract that the officer or employee is otherwise prohibited from awarding or signing under the provisions of the City Charter, this municipal code, or any other applicable law, or other official action of the Council.

(b) Nothing in this chapter shall limit any authority conferred by the Council to a city officer or employee to negotiate and execute any contract on the Council’s behalf without the further approval of the Council.

(Ord. 5387 § 1 (part), 2016: Ord. 4827 § 1 (part), 2004)