(a) Pursuant to Chapter XXII, Section 2(b) of the city charter, the city council shall, by ordinance, establish rules under which a contract may be let without city council approval. This section is established for that purpose. To the extent that this section, the city charter, or another provision of this code does not delegate approval authority for a particular contract, contract amendment, or other legal instrument, it is presumed that the contract, contract amendment, or other legal instrument must be approved by the city council.
(b) This section may not be construed to delegate authority to approve, without city council action, any contract, contract amendment, or other legal instrument that is required by state law to be approved by the city council.
(c) This section does not apply to:
(1) the city’s furnishing of ambulance service; water, wastewater, storm water drainage, or sanitation utility service; or any other similar municipal service to customers inside or outside of the city;
(2) a contract, contract amendment, or other legal instrument for which approval authority is separately delegated by the city charter or another section of this code; or
(3) the city’s grant of, or other action relating to, any license, franchise, permit, or other authorization pursuant to its regulatory powers.
(d) The city manager is authorized to approve the following by administrative action, without further city council action:
(1) A contract for the purchase of goods, general services, or facility construction, or for any other lawful municipal purpose not specifically described in this subsection, that requires a city expenditure not exceeding $100,000, except that no formal administrative action is required for the purchase of non-legal advertising placement (media buys).
(2) Except as provided in Paragraph (3), a change order to a contract required by state law to be procured through competitive bid, competitive sealed proposal, or an alternative delivery method that increases or decreases the contract price by $50,000 or less, provided that the original contract price may never be increased by more than 25 percent.
(3) A change order to a contract for facility construction (public works project) required by state law to be procured through competitive bid, competitive sealed proposal, or an alternative delivery method that increases or decreases the contract price by $100,000 or less, provided that the original contract price may never be increased by more than 25 percent.
(4) A contract for personal, professional, or planning services requiring a city expenditure not exceeding $100,000, except that no formal administrative action is required to execute a contract for real estate appraisal services requiring a city expenditure not exceeding $50,000.
(5) An amendment to a contract not required by state law to be procured through competitive bid, competitive sealed proposal, or an alternative delivery method, which amendment increases the contract price by $100,000 or less or causes any decrease in the contract price, except that approval of the city council is required on an amendment that increases the contract price by $100,000 or less if:
(A) the original contract price does not exceed $100,000 and the amendment increases the total contract price to an amount greater than $100,000; or
(B) the original contract price exceeds $100,000 and the amendment increases the original contract price by more than 25 percent.
(6) The exercise of a renewal option of a contract required by state law to be procured through competitive bid, competitive sealed proposal, or an alternative delivery method, if the city expenditure required during the renewal term does not exceed $100,000 or the renewal amount specified in the resolution approving the original contract.
(7) The exercise of a renewal option of a contract not required by state law to be procured through competitive bid or competitive sealed proposal, if the city expenditure required during the renewal term does not exceed $100,000 or the renewal amount specified in the resolution approving the original contract.
(8) A contract with an intergovernmental agency pursuant to Chapter 791 of the Texas Government Code, as amended, that generates less than $100,000 of revenue and does not require a city expenditure of upfront costs or other types of funding in excess of $100,000.
(e) All contracts, contract amendments, or other legal instruments (except purchase orders for supplies and equipment and change orders as described by Chapter XXII, Section 1 of the city charter) must be signed by the city manager and approved as to form by the city attorney. Purchase orders for supplies and equipment must be signed by the director. Subject to the restrictions provided by this code, the city charter, or state law, change orders may be approved by formal administrative action or may, as the city manager directs, be signed by the director of the department designated by the city manager to administer the contract that is the subject of the change.
(f) The city manager may delegate the authority granted under this section to the extent allowed by this code, the city charter, or state law. The city manager may make rules and procedures, which are not in conflict with this code, the city charter, or state law, concerning the form and substance of administrative actions and the administration of contracting and change order processes.