RPVCCA_SR_2010_04_20_08_Authorizing_Certain_City_Officers_To_Execute_ContractsCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
CAROL W.LYNCH,CITY ATTORNEY
SHIRl KLIMA,ASSISTANT CITY ATTORNEY
APRIL 20,2010
AUTHORIZING CERTAIN CITY OFFICERS TO
APPROVE AND EXECUTE PARTICULAR CONTRACTS
CAROLYN LEHR,CITY MANAGER ~
RECOMMENDATION
The City Attorney recommends that the City Council read the ordinance by title only,waive
further reading and introduce Ordinance No.,An Ordinance of the City of Rancho
Palos Verdes Adding Chapter 2.14 to Title 2 of the City's Municipal Code to Allow Certain
City Officers to Approve and Execute Particular Contracts.
INTRODUCTION
Currently,the City's Municipal Code enables the City Manager to authorize purchases,
including those by contracts,for amounts less than $25,000.However,the City's Municipal
Code is silent regarding whether such contracts can be executed by the City Manager.
California Government Code section 40602 provides that the mayor of a city shall sign all
written contracts made or entered into by that city,unless the legislative body provides by
ordinance that such contracts may be signed by another officer.If approved by the City
Council,the proposed Ordinance will improve the City's efficiency by aligning purchasing
authority (see attached Exhibit A)with signature authority,thereby helping to streamline the
process of contract approval and execution.By adding new chapter 2.14 to title 2 to the
Municipal Code,certain City officers would be authorized to approve and execute particular
contracts.
BACKGROUND
Staff conducted a survey with city clerks from various comparable cities,including "peer
cities"identified in Management Partner's 2008 Organizational Assessment.Respondents
included:Laguna Hills,Los Altos,Saratoga,Palos Verdes Estates,Malibu,Calabasas,
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Authorizing Certain City Officers to Approve &Execute Contracts
April 20,2010
Page 2 of 3
Hermosa Beach,Lawndale,Lomita,Rolling Hills,Gardena,Redondo Beach and
Manhattan Beach.
Each representative from the above-mentioned cities was asked to answer questions
concerning whether or not his or her city allows the city manager or designees to execute
contracts on behalf of the city.In addition,each city representative was also asked whether
his or her city has established a dollar limit for contracts that can be executed by the city
manager or designees,as well as reporting requirements for contracts executed by staff.
Every city represented in the survey allows its city manager to execute contracts on behalf
of the city,with the exception of Redondo Beach.The mayor of Redondo Beach executes
all contracts.Otherwise,the contract execution amount for city managers without prior city
council approval ranges from $5,000 to $125,000.The highest dollar amount for city
manager contract execution without prior city council approval is $125,000 in the City of
Saratoga.The median dollar amount for contract execution without prior city council
approval ranges from $20,000 to $25,000 in the cities of Los Altos,Hermosa Beach,
Rolling Hills and Manhattan Beach.The lowest dollar amount for city manager contract
execution without prior city council approval ranges from $5,000 to $15,000 in the cities of
Palos Verdes Estates,Malibu,Lawndale and Lomita.
DISCUSSION
The proposed Ordinance authorizes the City Manageror Deputy City Managerto approve
and execute all contracts with a value of twenty-five thousand dollars ($25,000)or less
without prior City Council approval.This matches the authorization to the City Manager or
his or her designee to enter into contracts not exceeding twenty-five thousand dollars
($25,000)set forth in Sections 20 and 25 of Chapter 44 of Title 2 of the City's Municipal
Code.
Second,the proposed Ordinance authorizes the City Manager,Deputy City Manager,or
Director of Public Works to approve and execute without City Council preapproval all
contracts regarding Level 1 Projects,as defined in Section 50 of Chapter 42 of Title 2 of
the Municipal Code,which are public works projects that fall within the dollar limits
prescribed by California Public Contract Code section 22032(a).That dollar limit is
currently set at thirty thousand dollars ($30,000)or less.The listed individuals are already
authorized by Section 50 of Chapter 42 of Title 2 of the Municipal Code to award such
contracts.
Third,the proposed Ordinance authorizes the City Manager or Deputy City Manager to
approve and execute a grant contract of any value without prior City Council approval if the
contract complies with the grant requirements and if the City's budget contains sufficient
unencumbered funds for a City matching amount,if required,not to exceed a City
contribution of twenty-five thousand dollars ($25,000).
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Authorizing Certain City Officers to Approve &Execute Contracts
April 20,2010
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Finally,the proposed Ordinance authorizes the City Manager,Deputy City Manager,or any
department director to execute a contract when the City Council adopts a resolution or
approves a minute order specifically authorizing that City officer to execute the specific
contract.
Attachments:
1)Exhibit A -City of Rancho Palos Verdes Purchasing Summary
2)Proposed Ordinance -An Ordinance of the City of Rancho Palos Verdes Adding
Chapter 2.14 to Title 2 of the City's Municipal Code to Allow Certain City Officers to
Approve and Execute Particular Contracts
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Exhibit "A":City of Rancho Palos Verdes Purchasing Summary
Purchase Description
Purchase Order
Construction,renovation,
improvement or painting
of public property.
Includes street
resurfacing of more than
1 inch and building
fixtures.
Over $500
Routine,recurring work
for preservation of public
property.Includes
landscape maintenance.
Over $500
Attorney,Architect,
Engineer,Auditor,
Financial Advisor,
Technology Professional,
Surveyor,Geologist,and
similarly licensed
professionals.Includes Physical goods (e.g.
election services,public lumber,signs,
relations,and negotiation equipment,vehicles,
serivces.etc.)
Over $500 laver $500
Water,electricity,gas,
telephone,property
lease payments,credit
card purchases and
credit card payments.
NIA
City Manager finds that
services,materials or
equipment are unique
and available from only
one source.City
manager approves
exigent or emergency
circumstances.City
Manager or City Council
deem the purchase to be
in the best interest of the
City.
Over $500
Informal Bid
Over $5,000 per fiscal
NIA Iyear
Over $5,000 per fiscal
NIA Iyear NIA NIA
Informal Bid (10 day
notice to contractor list
and trade journals)
Formal Bid
Department Head
Approved Contract
Over $30,000 per project
(including professional
services)
Over $125,000
Over $30,000
NIA
Over $25,000 per fiscal
year
NIA
NIA
NIA
NIA
NIA
Over $25,000 per fiscal
year
NIA
NIA
NIA
NIA
NIA
NIA
NIA
City Council Approved
Contract laver $125,000
All work with increased
liability (e.g.hazardous
waste remova!),all work
on private property and
over $25,000 for work on
public property.laver $25,000 Over $25,000 NIA NIA
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES ADDING
CHAPTER 2.14 TO TITLE 2 OF THE CITY'S MUNICIPAL CODE TO
ALLOW CERTAIN CITY OFFICERS TO APPROVE AND EXECUTE
PARTICULAR CONTRACTS.
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES
HEREBY FIND,DETERMINE,AND ORDER AS FOLLOWS:
Section 1:Chapter 2.14 (Approval and Execution of Contracts)of Title 2 of the
Municipal Code is hereby added to read as follows:
"2.14.010 Approval and execution of contracts without prior City Council approval.
A.The City Manager or Deputy City Manager may approve and execute all
contracts with a value of twenty-five thousand dollars or less without prior City Council
approval.
B.The City Manager,Deputy City Manager,or Director of Public Works may
approve and execute all contracts regarding Level 1 Projects,as defined in Section 50
of Chapter 42 of Title 2 of this Code,which are public projects that fall within the dollar
limits prescribed by subsection (a)of Section 22032 of the California Public Contract
Code or any successor statute,without prior City Council approval.
C.The City Manager or Deputy City Manager may approve and execute a
grant contract of any value without prior City Council approval if the contract complies
with all requirements of the grant program and if the City's budget contains sufficient
unencumbered funds for a City matching amount,if required,not to exceed a City
contribution of twenty-five thousand dollars.
D.No contract can be approved and executed without prior City Council
approval unless funding for the contract has already been allocated in the City's budget
by the City Council.
2.14.020 Approval and execution of contracts with prior City Council approval.
The City Manager,Deputy City Manager,or any department director may
execute any contract when the City Council adopts a resolution or approves a minute
order authorizing that City officer to execute the specific contract."
Section 2:The City Clerk shall'certify to the adoption of this ordinance and
shall cause the same to be posted in the manner prescribed by law.
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PASSED,APPROVED and ADOPTED this day of May 2010.
Mayor
Attest:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
I,Carla Morreale,City Clerk of the City of Rancho Palos Verdes,do hereby
certify that the whole number of members of the City Council of said City is five;that the
foregoing Ordinance No.__passed first reading on April 20,2010,was duly and
regularly adopted by the City Council of said City at a regular meeting thereof held on
May _'2010,and that the same was passed and adopted by the following roll call
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
2
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