4.04.020 - Contract authority of the city manager.
A. The City Manager is authorized to enter into and execute for and on behalf of the City of San José, without the prior approval of the City Council, any contract, for which:
1. Moneys have been appropriated; and
2. There is an unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract; and
3. The total monetary value expended or received by the City does not exceed the amount listed below with respect to the type of contract:
a. Emergency purchases pursuant to Section 4.12.220 regardless of the amount expended;
b. Agreements for the lease or purchase of supplies, materials and equipment including services incidental to such lease or purchase, having a maximum value of one million, four-hundred thirty thousand dollars ($1,430,000) (as adjusted pursuant to Section 4.04.085, starting on July 1, 2025), provided that the value of services incidental to such lease or purchase shall not exceed twenty-five percent (25%) of the total contract value unless those incidental services are general services;
c. Agreements for professional consulting services having a maximum value of three hundred fifty thousand dollars ($350,000) (as adjusted pursuant to Section 4.04.085, starting on July 1, 2025);
d. Agreements for general services having a maximum value of one million four hundred thirty thousand dollars ($1,430,000) (as adjusted pursuant to Section 4.04.085, starting on July 1, 2025);
e. Agreements relating to the grant of funds to or from the City and agreements for the acquisition of public artwork having a maximum value of two hundred fifty thousand dollars ($250,000) (as adjusted pursuant to Section 4.04.085);
f. Sponsorship Agreements (as described in Section 4.04.010A.7.) having a maximum value of two hundred fifty thousand dollars ($250,000) (as adjusted pursuant to Section 4.04.085), each with a term not exceeding three (3) years, and which otherwise comply with City Council policy; and
g. All other types of contracts having a maximum value of three hundred fifty thousand dollars ($350,000) (as adjusted pursuant to Section 4.04.085, starting on July 1, 2025).
B. In addition, the City Manager is authorized to enter into and execute for and on behalf of the City of San José, without the prior approval of the City Council the following:
1. Any contract for the payment of fees imposed on the developer of a residential project pursuant to Chapter 14.25 or Chapter 19.38 of this Code;
2. Leases, licenses or other agreements for use of property where the City is a lessee/user or lessor/grantor, where the rental payments or other fixed consideration do/does not exceed a cumulative total of two hundred fifty thousand dollars ($250,000) (as adjusted pursuant to Section 4.04.085);
3. One or more amendments to a lease, where City is a lessee or lessor, for the purpose of undertaking a cumulative total of no more than one hundred thousand dollars ($100,000) (as adjusted pursuant to Section 4.04.085) in improvements to the leased property over the term of the lease, including option periods;
4. Tenant estoppel certificates on behalf of the City, where City is a landlord, tenant or subtenant under an existing lease;
5. Agreements for the purchase or donation of fee interests in real property or for the grant of easements to the City, and all documents necessary to complete the purchase, where:
a. The real property or the easement is being acquired in order to implement a project approved by the City Council; and
b. The grant of easement or acquisition of real property has been determined to present no significant toxics liability; and
c. The compensation to the seller of the real property or grantor of the easement for the interest to be conveyed does not exceed two hundred fifty thousand dollars ($250,000) (as adjusted pursuant to Section 4.04.085) and all costs of purchase and additional costs of escrow and closing are lawfully available in accordance with Subsections 4.04.020A.1. and 2. above.
6. Temporary construction easements for terms not exceeding two (2) years where the City is grantor or grantee and the compensation for the temporary construction easement rights does not exceed two hundred fifty thousand dollars ($250,000) (as adjusted pursuant to Section 4.04.085); and
7. Agreements for the sale of fee interests in real property where:
a. The real property has been declared surplus to the needs of the City by the City Council as provided in Chapter 4.20 or the disposition otherwise conforms to the Surplus Land Act (Cal. Gov. Code § 54220 et seq.), as may be amended from time to time; and
b. The process for conducting the sale was a competitive process or otherwise complies with the provisions of Chapter 4.20; and
c. The real property is not independently developable (as defined in Chapter 4.20); and
d. The sales price is less than six hundred thousand dollars ($600,000) (as adjusted pursuant to Section 4.04.085), and such sales price is not less than the estimated fair market value of the real property; and
e. Any reservation of easements or other rights to the City is limited to those reasonably necessary to support present or future public infrastructure, including, without limitation, rights-of-way and utilities.
8. Agreements for the granting of easements in real property where:
a. The value of the grant of easement(s) is less than six hundred thousand dollars ($600,000) (as adjusted pursuant to Section 4.04.085), and such value is not less than the estimated fair market value of the easement; and
b. The purpose of the easement(s) is limited to those reasonably necessary to support present or future public infrastructure, including, without limitation, rights-of-way and private or public utilities.
C. No provision of this Chapter is intended to limit the authority of the City Manager or any Council appointee from seeking approval of a specific action by the City Council, nor is it intended to limit the authority of the City Council to place limitations on the City Manager's or other Council appointee's authority with respect to entering into specific contracts.
(Prior code §§ 2917.1, 4.04.010; Ords. 19626, 20708, 22229, 24382, 24418, 25063, 25619, 26386, 27103, 27980, 28185, 28359, 28802, 28803, 28897, 29245, 30848, 31227.)
