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Council staff propose code change to raise manager signing authority to $50,000 and create a signature matrix
Summary
City staff presented a draft ordinance and accompanying signing-authority matrix July 22 that would repeal an older code section and delegate signature authority for contracts, purchases and grant applications; staff said the change would raise the city manager's delegated contract authority to $50,000 and would formalize delegated levels for
City staff told the Shelton City Council at the July 22 study session they will bring an ordinance to amend municipal code sections governing department functions and signatory authority.
Staff said the proposal would repeal an outdated 1988 code section (2.06) and add a new 2.18 to consolidate signing authority and remove redundancy. The substantive change staff proposed is to delegate the authority to the city manager to execute contracts and grant agreements under $50,000 on behalf of the city and to permit one-time purchases over $50,000 if the purchase is already included in the city’s approved annual budget. Staff described a companion signing-authority policy (a matrix) that would set lower delegated thresholds for department directors, supervisory staff and field employees.
A staff speaker explained the change as an efficiency measure: "We don't want to hold up the contract or work that's gonna be done for a week or even two weeks to get to another item for the council," the staff member said during the presentation. He said the council approved a $30,000 signing threshold by resolution in 2020 and that the new ordinance would repeal that prior resolution and codify a $50,000 manager authority in code.
Staff said items above the $50,000 threshold would continue to come to council for authorization and that the budget book would list specific items over $50,000 that managers may sign if they are included in the approved budget. The matrix staff presented shows distinct authority bands for council, the city manager, department directors, supervisory staff and line staff, and staff said accounting and procurement procedures will retain checks and supervisor signoffs.
Council members voiced general support for raising the threshold given inflation and the pace of contracting, with one council member noting frequent staff briefings made them comfortable with the higher delegation. Staff proposed bringing the ordinance and a resolution repealing the 2020 signing-authority resolution to the August 19 regular council meeting.
Ending: The council did not adopt the ordinance at the study session. Staff said they will bring a proposed ordinance and companion signing-authority policy to the August 19 regular meeting for council consideration and a formal vote.
