At the Feb. 25, 2025 Tumwater Budget and Finance Committee meeting, the next agenda item was ordinance O2025-006, a proposed amendment to Tumwater Municipal Code (TMC) 2.14 to delegate execution authority for certain routine contracts to the mayor and department directors.

Staff presented a catalog of agreements and amendments the city processed in 2024 to illustrate what would and would not have required council approval under the proposed language. Staff said the primary distinguishing factor in the draft ordinance was dollar thresholds and whether an agreement obligates city resources. For example, staff noted that large interlocal agreements tied to federal or county grants (including millions of dollars for Community Development Block Grant participation) would still be brought to council, while smaller memoranda of understanding (such as $2,500-per-year emergency-services MOUs) would not.

Several council members expressed concern that using a dollar threshold alone could omit agreements that raise policy questions or merit public discussion. "A lot of these ILAs are pretty substantive," said Councilmember Althauser, arguing that agreements involving climate mitigation, environmental education or other policy areas should receive public airing even if below a monetary threshold. Councilmember Agave said the relationship between intent and dollar amount could create confusion and urged caution about letting amount alone determine council review.

Staff and members discussed three categories in detail:
- Interlocal agreements and MOUs: Council members asked for carve-outs so agreements touching climate, regional partnerships (for example, Energize Thurston and regional environmental-education programs), or other policy-heavy areas would continue to be presented to council for discussion.
- Grant agreements: Staff said that fully obligating grants or those that require a city match typically warrant council approval because they create budgetary obligations. Some smaller grant amendments that extend terms without increasing obligations might not need council action under clarified language.
- Audit engagement letters and required data-sharing agreements: Troy, Finance Director, explained that auditors' entrance/exit notifications and recently required data-sharing agreements are largely technical and result from a state law change after a data breach. He said the auditors must document that the governing body was informed and that those notifications could be handled administratively to avoid slowing the audit process.

Several members asked staff to refine the draft to include clearer thresholds and explicit carve-outs for policy-sensitive interlocal agreements and for amendments that change the mission or materially increase obligations. Staff agreed to return with revised ordinance language.

Direction: staff will revise the proposed ordinance language to clarify dollar thresholds, add exceptions for policy-sensitive ILAs and grants, and provide language to ensure council notification of certain types of agreements. The item will return to committee (targeted for the May meeting) after staff work.

Ending: Staff said the proposed ordinance is optional and will only move forward if the council is comfortable; staff will bring refined language back to the committee.