(a) Except as otherwise provided in the Charter or this Code, no board, officer or employee of the City shall make any contract, obligating the City, or any department of the City, to make or receive payments of money or other valuable consideration for a period longer than three (3) years, unless such contract shall have been first approved by the Council. The Council shall have 60 days from the date the contract is transmitted by the board, officer or employee and received by the City Clerk, to approve it. The contract shall be deemed approved if the Council does not disapprove it within this period. If the Council disapproves the contract, the Council shall not modify the contract, but shall return it to the contracting authority for reconsideration and resubmission to the Council.
This section shall not apply to:
1. Contracts entered into with the United States government, or other governmental agencies; and
2. Contracts for purchases awarded by the Purchasing Agent of the City or jointly by the Purchasing Agent and one or more of the proprietary departments (Water and Power, Harbor, Airport and/or Library), for purchases of materials, supplies, equipment or equipment rental, or of repair and maintenance services therefor; and
3. Contracts awarded by the Board of Public Works for construction work or for design consultants, project or construction management services, or other personal services directly related to construction work for the City’s capital improvement projects, unless they are for a term of more than five (5) years as defined in Subsection (c) of this Section; and
4. Cooperative agreements where no financial or staff commitment is required.
5. Contracts entered into by the Board of Deferred Compensation Administration for investment management services related to the City of Los Angeles Deferred Compensation Plan, unless they are for a term of more than five years, as defined in Subsection (c) of this section.
6. Contracts entered into by the Personnel Department with service providers for the City's Civilian Flex Benefits Program unless they are for a term of more than five years, as defined in Subsection (c) of this section.
7. Contracts entered into by the Board of Deferred Compensation Administration with service providers for the Deferred Compensation Plan unless they are for a term of more than five years, as defined in Subsection (c) of this section.
8. Contracts entered into during any time in which the Mayor has declared the existence of a local emergency or at any time a disaster or local emergency has been declared by the President of the United States or the Governor of California that includes or encompasses the City of Los Angeles, when the City Council, by resolution approved by the Mayor, authorizes the head of a City Department, or a Chief Administrative Officer specified in a resolution approved pursuant to Section 10.1.1(f), to approve a contract extension of up to one year for a contract that is scheduled to expire within one year from the earliest date upon which the emergency was declared. The resolution approved hereunder:
(i) Shall establish the consideration limitation for any contract extension approved by the Chief Administrative Officer;
(ii) May apply to all City Departments or may specify which Departments are encompassed by the resolution; and
(iii) May specify any other applicable limitations.
(b) For the purpose of this section a contract obligating the City, or any department of the City, to make or receive payments or other valuable consideration for a period longer than three (3) years, shall include:
1. A contract which contains a provision, such as, but not limited to, an option clause, which allows for a cumulative period longer than three (3) years, said period calculated as of the date of execution of the contract; or
2. A contract replacing an expiring or expired contract or an amendment to a contract involving the same party or parties with no new competitive process having been utilized with a resulting cumulative period of longer than three (3) years, said period calculated as of the date of execution of the initial contract, and it is anticipated that the estimated or actual annual payments to or by the City under such contract shall exceed One Hundred Thousand Dollars ($100,000), adjusted annually in accordance with the Consumer Price Index.
1. A contract which contains a provision, such as, but not limited to, an option clause, which allows for a cumulative period longer than five (5) years, said period calculated as of the date of execution of the contract;
2. A contract replacing an expiring or expired contract or an amendment to a contract involving the same party or parties with no new competitive process having been utilized with a resulting cumulative period of longer than five (5) years, said period calculated as of the date of execution of the initial contract, and it is anticipated that the estimated or actual annual payments to or by the City under such contract shall exceed One Hundred Thousand Dollars ($100,000), adjusted annually in accordance with the Consumer Price Index.
(d) Any franchise, concession, permit, license or lease proposed to be entered into by the Department of Airports, Harbor or Water and Power for a term of five years or less consistent with the definition in Subsection (c), above, shall not require approval by Council.
(e) The Department of Water and Power shall not enter into any contract to make or receive payments of money or other valuable consideration for a period longer than five (5) years, unless such contract shall have been first approved by the Council. This subsection shall not apply to contracts exempted by Subsection (a). Any contracts requiring Council approval shall be subject to the time line and process for Council action set forth in Subsection (a). For the purposes of this Subsection (e), a term of longer than five (5) years shall include:
1. A contract which contains a provision, such as, but not limited to, an option clause, which allows for a cumulative period longer than five (5) years, said period calculated as of the date of execution of the contract;
2. A contract replacing an expiring or expired contract or an amendment to a contract involving the same party or parties with no new competitive process having been utilized with a resulting cumulative period of longer than five (5) years, said period calculated as of the date of the execution of the initial contract, and it is anticipated that the estimated or actual annual payments to or by the City under such contract shall exceed One Hundred Thousand Dollars ($100,000), adjusted annually in accordance with the Consumer Price Index and an amount that is the same as Section (b)(2).
(f) Any contract proposed to be entered into by the DWP for specialized construction equipment or software that is only offered by one vendor shall not require approval by Council unless it is for a term of longer than ten (10) years.
SECTION HISTORY
Based on Charter, Sec. 390.
Amended by: Ord. No. 170,313, Eff. 3-3-95, Oper. 4-25-95; First unnumbered para, Ord. No. 171,274, Eff. 10-20-96; Ord. No. 173,186, Eff. 5-22-00; Ord. No. 173,270, Eff. 6-25-00, Oper. 7-1-00; Subsec. (a)5. added, Ord. No. 179,162, Eff. 10-15-07; Subsec. (a)6. added, Ord. No. 183,853, Eff. 10-25-15; Subsec. (a)7. added, Ord. No. 184,129, Eff. 4-13-16; Subsecs. (e) and (f) added, Ord. No. 185,471, Eff. 4-23-18; Subsec. (a)8. added, Ord. No. 186,636, Eff. 5-29-20.