A. Income or expenditure less than $250,000.
1. Notwithstanding any other provision of this title, the city manager is authorized, without complying with the competitive bidding procedures of this title, to execute any contract, if the amount of the expenditure or income is less than $250,000. If no expenditure or income amount is stated in a contract, the amount is the estimated value of the goods or services to be exchanged over the term of the contract, including any renewal options, as determined in good faith by city staff.
2. For purposes of subsection A.1, for any contract regarding real property —
a. The amount of the expenditure or income:
i. Is the amount prior to any discount or reduction in price given or received, and
ii. includes the actual periodic rental or other payments required over the entire term of the contract, including any renewal option periods set forth in the contract.
b. The amount of the expenditure or income excludes:
i. Periodic expenses that the other party is required to pay, including utilities, taxes, insurance, repairs, and maintenance, and
ii. Usual costs associated with the sale of real property, including real estate commissions, closing costs, escrow costs, and related costs and fees.
3. For purposes of subsection A.1, for the sale of real property owned by the city, the following procedures must be followed:
a. The price must be established based upon a fair market value appraisal conducted by city staff or under an agreement executed by the city manager with a qualified independent real estate appraiser. If the established price is less than $250,000, the real property shall be listed on the open market by the city manager or with a licensed real estate broker under an exclusive or nonexclusive listing agreement executed by the city manager, unless the city manager determines that it is in the best interest of the city to do otherwise.
b. The entire net income from the sale of the property after reduction for city staff labor reimbursement, if applicable, shall be deposited into the specific city fund which, under city accounting procedures, carries or has carried the parcel or parcels of real estate as an asset of the fund.
4. For purposes of subsection A.1, for any contract establishing an externally funded program or any grant, the contract must also satisfy any restrictions otherwise established by resolution of the city council.
5. The city council may, by resolution, increase the city manager's authority under this section to execute any contract or category of contracts under circumstances the city council finds appropriate.
B. Income or expenditure of $250,000 or more. Unless otherwise specified in this title, all contracts involving income or expenditure of $250,000 or more require approval of the city council, for signature of the city manager. The signature of the city manager constitutes certification that there remains unexpended and unapplied balances of the appropriations or applicable funds sufficient to pay for the city's obligations under the contract. (Ord. 2024-0010 § 1; Ord. 2020-0013 § 1; Ord. 2018-0010 § 1; Ord. 2016-0038 § 1; Ord. 2000-017 § 2(k)(i) (Exh. B); Ord. 2000-013 § 1; prior code § 12.08.130)