Tracy Municipal Code Art. 2 Contract Authority

City Council approval is required for each contract regulated by this chapter unless authority to sign the contract is granted to another City officer under this Article 2 or by City Council resolution. Such authority shall be exercised consistent with this Chapter 2.20 and/or as provided under City Council resolution.

(Ord. No. 1380, 2-3-2026)

(a) The City Manager, or her/his designee authorized in writing by the City Manager, is authorized to enter into and sign on behalf of the City, without the prior approval of the City Council, a contract which:

(1) Contains an initial maximum compensation figure of up to One Hundred Thousand Dollars and no/100ths ($100,000.00) or less. Notwithstanding subsection (b) of this section, any change order or amendment to a contract may not exceed a cumulative amount of One Hundred Twenty-five Thousand Dollars and no/100ths ($125,000.00) total for that contract. Cumulative change orders or amendments exceeding One Hundred Twenty-five Thousand Dollars and no/100ths ($125,000.00) must be approved by the City Council;

(2) Is not required by any applicable State law to be the lowest bidder;

(3) Is a contract for City-managed professional services in an amount up to One Hundred Thousand and no/100ths ($100,000.00) Dollars if the following criteria are met:

(i) A cost recovery agreement exists;

(ii) An applicant for development entitlements has deposited the required amount under the contract with the City; and

(iii) The funds are to be used for development related studies, such as an environmental impact report;

(4) Indemnifies and holds harmless agreements with other public entities;

(5) Allows right of entry agreements by which the City is granting rights to enter and/or temporarily use City-owned real property and right of entry agreements by which the City is being granted rights to enter and/or temporarily use real properties owned by third parties which agreements may include indemnification and hold harmless clauses; or

(6) Is a cost recovery agreement with an applicant or proponent, at no cost to the City.

(b) Notwithstanding the maximum compensation limits set forth in subsection (a)(1) of this code section, for public projects awarded by City Council resolution, the City Manager, or designee, may authorize change orders up to the contingency amount approved by City Council when awarding the bid and/or approving the budget for such public projects and a department head, or designee, may authorize a change order of up to Twenty-Five Thousand Dollars and no/100ths ($25,000.00) provided such change order is still within the contingency amount approved by City Council.

(c) In an emergency endangering the lives, property or welfare of the people of the City or the property of the City, the City Manager may execute a contract, in any format approved as to form by the City Attorney, and authorize the expenditure of any unencumbered moneys, notwithstanding the fact that such moneys may not have been appropriated for such purpose, to the extent that other moneys have not been appropriated or are otherwise unavailable. If the contract involves a public works contract for a public project, the procedures set forth in Section 2.20.270, subsection (a) and applicable law, shall be followed.

(d) Notwithstanding any other provisions of this chapter, the City Manager may execute contracts for professional or general services for the Grand Theater in any amount up to One Hundred Thousand Dollars and no/100ths ($100,000.00) in any format approved as to form by the City Attorney.

(Ord. No. 1380, 2-3-2026)

(a) The City Attorney is granted, for purposes related to legal services and the activities or functions of the office of the city attorney, the same authority as the City Manager as set forth in Section 2.20.090(a)(1) and (2).

(b) The City Attorney is also granted the authority to execute for City-managed professional legal services in an amount up to One Hundred Thousand Dollars and no/100ths ($100,000.00) Dollars if the following criteria are met:

(1) A cost recovery agreement exists;

(2) An applicant for development has deposited the required amount under the contract with the City; and

(3) The funds are to be used for development related legal services.

(c) The City Attorney is granted authority to approve, without city council approval, contracts which appoint and retain outside legal counsel to prosecute lawsuits for the city or defend lawsuits (or the potential threat of litigation) against the city provided that monies have been appropriated and for which there is an unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contracts.

(d) In addition to the authority granted in Section 2.20.095(a), the informal request for proposal procedure in Section 2.20.130(a) may be dispensed with when the City Attorney in his or her best judgment makes a written finding that compliance with these procedures is not in the best interest of the City.

(Ord. No. 1380, 2-3-2026)

Department heads, including the Assistant City Managers, are authorized to enter into and sign on behalf of the City, without the prior approval of the City Manager or City Council, a contract:

(a) Which is for the purchase or lease of commodities, equipment, general services, and professional services;

(b) Which contains a maximum compensation amount up Fifty Thousand Dollars and no/100ths ($50,000.00). Any change order or amendment to a contract may not exceed a cumulative amount of Seventy-five Thousand Dollars and no/100ths ($75,000.00) for that contract;

(c) Which is not required by any State law to be let to the lowest responsible bidder; and

(d) Is approved as to form by the City Attorney or her/his designee.

(Ord. No. 1380, 2-3-2026)