POLICY 34
PROCUREMENT AND DELEGATION OF SIGNATURE AUTHORITY Revised 8/24
SECTION INDEX: Signature Authority Procurement and Delegation
1. Purpose
2. Reference
3. Application
4. Definitions
5. Guidelines
1. PURPOSE
The purpose of this policy is to provide citywide standards for contracts and delegation of signature authority.
2. REFERENCE
• Chapter 3.16 OMC, Contracts
• Policy 2, Credit Card/Merchant Card/Pre-paid Card
• Policy 15, Miscellaneous Expense
• Policy 18, Recognition Events and Other Related Expenses
• Policy 21, Travel
• Policy 32, Electronic Signatures
3. APPLICATION
This Policy applies to all City of Olympia employees and volunteers. Failure to comply with this Policy may result in disciplinary action up to and including termination from City service.
4. GUIDANCE
The intent of this policy is to delegate signature authority to City staff who have the most knowledge and control over the work and to encourage efficient business flow.
City staff should solicit and obtain good value for goods and services they purchase. Factors for determining good value may include cost effectiveness; quality; environmental sustainability; use of veteran, minority, women, disability, LGBTQ+ owned businesses; use of small businesses; best labor practices; local business participation; and advantageous delivery timeline. The City Manager expects Departments to be able to document value when obtaining goods or services.
RCW 35.23.352 (via RCW 35A.40.200) and Chapter 39.04 RCW will control the processes and the criteria for selection for procurements involving public works projects. Chapter 39.80 RCW will control the process and the criteria for selection for procurements involving architectural or engineering services.
All procurement must be done in accordance with City policies, codes and applicable government laws. Additionally, all contracts are expected to be reviewed by the Legal Department or a Legal Department authorized contract reviewer prior to signature.
5. GUIDELINES
5.1. City Council Retains the following Authority Over Contract Approval
The City Council retains the right to approve:
a) Any contract, agreement, or other document with a cost over $350,000.
b) Interlocal agreements.
c) Grant agreements.
d) Real Property Instruments pertaining to the City’s use, disposition, conveyance, or acquisition of real property with the following exceptions:
1. An acceptance by the City in its regulatory capacity of a dedication from a developer.
2. Temporary construction licenses.
3. Real Property Instruments associated with a capital improvement project when such project has been previously approved by the City Council.
5.2. Authority Delegated to the City Manager
The City Council has delegated to the City Manager the authority to:
a) Waive competitive bidding requirements pursuant to OMC 3.16, provided that the City Manager determines that the purchase or public work qualifies for waiver pursuant to RCW 39.04.280 or other state or local law. Immediately following contract award, the contract, and the factual basis for the exemption from public bidding must be recorded and available for public inspection.
b) Approve any contract, agreement, or other document with a cost up to, and including, $350,000 provided it is not otherwise subject to City Council approval.
c) Accept on behalf of the City in its regulatory capacity a dedication from a developer.
d) Approve temporary construction licenses.
e) Sign for Real Property Instruments associated with a capital improvement project that have been previously approved by the City Council.
5.3. Authority Delegated to Assistant City Managers and Department Personnel
The City Manager delegates the following authority:
a) Assistant City Managers, when not acting for the City Manager, and Department Directors have authority to sign the following up to, and including, the amount of $250,000.00: construction contracts, professional services agreements, service contracts, contract amendments, change orders, justification of sole source, and all other forms for procurement of goods and services.
b) Assistant City Managers and Department Directors may delegate their signature authority to City staff in their office or department so long as such delegation of authority is in writing and signed by the Assistant City Manager or Department Director. Signature authority may be delegated at one of three tier levels:
a. Tier 1: Signature authority to sign for goods and services valued at up to, and including, $15,000.00,
b. Tier 2: Signature authority to sign for goods and services valued at up to, and including, $50,000.00, or
c. Tier 3: Signature authority to sign for goods and services valued at up to, and including $250,000.00.
c) Signature authority delegated to Assistant City Managers and Department Directors, or those they delegate their signature authority to, will be granted for accounts only within their sphere of control.
d) Assistant City Managers and Department Directors are responsible for ensuring that Financial Services and the Legal Department are kept apprised of those who are delegated signature authority in their respective office or department.
e) Assistant City Managers and Department Directors are responsible for ensuring that all contracts signed by office or department staff are filed in ContractSafe.
5.4. Authority Delegated to the Public Works Director to Accept Dedication from a Developer
The City Manager delegates authority to the Public Works Director to accept Real Property Instruments on behalf of the City, in its regulatory capacity, of dedications from a developer.
5.5. Authority Delegated to the City Engineer for Emergency Declarations and Other Responsibilities
The City Manager delegates authority to the City Engineer to:
a) Declare any public work an emergency if the situation meets the criteria outlined under RCW 39.04.280. A written finding of the emergency must be filed with the City Clerk no later than two weeks following the contractor award of such work.
b) Make a final decision to deem a contractor not responsible and/or to reject bids for any public works project that falls within the City Manager’s contract authority under this chapter.
c) Approve temporary construction licenses.
5.6. Authority Delegated to the City Finance Director
The City Manager delegates authority to the City Finance Director, or their designee, to:
a) Sign for expenses related to approved payroll costs, previously approved debt payments, and investment transactions made within policy. Such expenses are exempt from the $350,000.00 threshold requiring City Council approval.
b) Sign all approved payroll costs.
c) Sign all expenses, transfers, or journals related to banking, debt, and investments.
d) Authority to sign for any City account. Prior to signing on behalf of a department, the City Finance Director will make all efforts to coordinate with departments to secure a signature from an approved delegate. Further, the City Finance Director may approve temporary delegation rights within the department for approval of a payment.
5.7. Authority Delegated to the City Risk Manager
The City Manager delegates authority to the City Risk Manager, or their designee, to:
a) Sign for expenses related to contracted services for liability and property insurance, including the settlement(s) of insurance claims. Such expenses are exempt from the $350,000.00 threshold requiring City Council approval.
Revision history: August 2024. This policy supersedes The City of Olympia Contract Policy dated November 11/16/2020.