No agreement obligating the City to pay money or undertake debt; or to sell, buy or encumber real or personal property; or to lease real or personal property to or from others; or to accept real or personal property; or to perform any act or refrain from performing any act; or to become obligated for any combination of these; shall be enforceable against the City unless the agreement satisfies the following requirements and formalities, which are mandatory:
(a) It has been specifically approved by an ordinance or resolution adopted by the Council, or categorically approved by an ordinance adopted by the Council for inclusion in the Administrative Code for the purpose of facilitating routine transactions.
(b) It is in writing, with the date of execution by each signatory separately indicated.
(c) It has been executed by the City Manager, or by his designee under those circumstances in which the City Manager is authorized by ordinance to appoint a designee.
Nothing in this Section shall be construed as preventing the City from performing all or part of an unenforceable contract if in its interest to do so, but neither full or part performance by the City or by any other party shall create any legal or equitable obligation enforceable against the City.
The Council may by ordinance establish additional formalities, rules and procedures controlling the formation of City contracts. Nothing in this Section shall prevent the retroactive approval of a contract by the Council by ordinance or resolution.
By the publication of this Charter, all persons doing business with the City shall be deemed to have constructive notice of these mandatory limitations on City contracting. Such persons have an affirmative duty to assure themselves that all applicable legal requirements have been complied with for the formation of a City contract, and failing to do so, assume the risk of doing business under an unenforceable contract. (Amended 11-4-08.)