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OFFICE OF THE CITY MANAGER

(910) 341-7810 | FAX (910)341-5839
TDD (910)341-7873

11/20/2018

City Council
City Hall
Wilmington, North Carolina 28401

Dear Mayor and Councilmembers:

Attached for your consideration is a resolution delegating Limited Authority to the City Manager to
award and execute contracts of any nature on behalf of the City. Currently, the City Manager's
authority is affected and defined by state law, City Charter, City Code, and various resolutions. The
resolution before you will provide a uniform, comprehensive, and efficient framework for the
administration of contracts of all types.

The City Manager or his designee will have the authority to award, approve, and execute any contract,
agreement, or settlement when the amount or value is less than $90,000. This resolution also restates
the City Manager's authority delegated by City Code Section 2-36, which includes amendments, change
orders, and emergency procurements. Additionally, this resolution will specifically delegate authority
to the City Manager to approve real property acquisitions, grant licenses, easements, rights-of-way, or
encroachments upon City property, and to lease City property for a term of one year or less, in amounts
up to $90,000.

Any authority granted to the City Manager by this resolution is subject to sufficient appropriations in
the annual budget, compliance with any applicable legal requirement, and the approval of the contract
or agreement as to form by the City Attorney.

Passage of the attached Resolution is recommended.

Respectfully submitted,

Sterling B. Cheatham,
City Manager

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Resolution
City Council
City of Wilmington
North Carolina

Introduced By: Sterling B. Cheatham, City Manager Date: 11/20/2018

Resolution Delegating Limited Authority to the City Manager (including his Designees) To
Award and Execute Contracts of Any Nature on Behalf of the City Of Wilmington

LEGISLATIVE INTENT/PURPOSE:

WHEREAS, the City of Wilmington has been granted certain corporate powers, including, but
not limited to, the power to contract, to acquire real property, and to grant easements and
encroachments in city property and right-of-way; and

WHEREAS, pursuant to N.C.G.S 160A-12, when a power is conferred by charter or general

law without directions or restrictions as to how it is to be exercised or performed, such power
may be carried into execution as provided by resolution of the City Council; and

WHEREAS, the power to contract under the formal bid threshold, to acquire real property, to
grant easements, right-of-ways, and encroachments are all conferred without directions or
restrictions as to by whom such powers may be exercised and performed; and

WHEREAS, the City Manager’s authority to contract on behalf of the City is regulated and
affected by several provisions of the City Charter, City Code, and the general statutes; and

WHEREAS, the City Manager’s authority to contract on behalf of the City is also affected and
defined by twenty-one (21) resolutions dating back to 1980; and

WHEREAS, changes in state law, combined with a review of the City’s current practices, have
resulted in staff’s determination that amendments to current city code provisions and resolutions
are necessary for consistency of practice; and

WHEREAS, City Council desires to provide a uniform, comprehensive, and efficient

framework for the administration of contracts of all types; and

WHEREAS, the Wilmington City Charter names the City Manager as the administrative head of
the city government and tasks the Manager or his designee with the supervision of the
performance of all contracts of the city.

THEREFORE, BE IT RESOLVED:

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1. The City Manager shall have the authority to award, approve and execute contracts,
agreements, or settlements of any kind or nature on behalf of the City when the amount or
value of such contract, agreement, or settlement is less than $90,000. This authority shall
include, but not be limited to, contracts, agreements, or settlements related to the:
a. Acquisition of any form of Real Property;
b. Acceptance of gifts or donations;
c. Grant of easements, right-of-way, or encroachment rights in or upon City property;
d. Licenses in or upon City property;
e. Settlements of claims by, and against, the City. (In the case of claims against the City,
the settlement amount shall control, in the case of claims by the City, the amount of the
claim shall control.)

2. The City Manager shall have the authority to award, approve and execute contracts for
construction or repair work (including demolition) when the amount or value of such
contract is less than the threshold for formal bidding established by N.C.G.S. 143-129.

3. The City Manager shall have the authority to award, approve and execute contracts for the
purchase of gasoline, diesel fuel, alcohol fuel, motor oil, fuel oil, or natural gas of any
amount, subject to compliance with N.C.G.S. 143-131.

4. The City Manager shall have the authority to award, approve and execute contracts for
sponsorships of city facilities, programs, or services may be awarded and executed by the
City Manager pursuant to city policy as set forth by City Council.

5. The City Manager shall have the authority to award, approve and execute leases of City
Property when the amount or value of such lease is less than $90,000 and for a term of
one year or less, subject to compliance with N.C.G.S. 160A-272.

6. The City Manager shall have the authority to award, approve and execute contract
amendments and change orders, of any nature or in any combination, number, or
cumulative amount, so long as the original contract budget or value authorized or
amended by City Council is not increased by more than the amount the City Manager
could have authorized had the amendment or change order been an original contract of
the same nature. The City Manager shall report the execution of any contract
amendments or change orders having the value of $10,000 or more, including the amount
and purpose, to the City Council on a monthly basis.

7. The City Manager shall have, during the existence of a proclaimed state of emergency, the
authority to award, approve and execute contracts and agreements involving the health
and safety of the people or their property that are reasonably necessary to address the
emergency. The City Manager is authorized to award contracts without regard to the
amount of such contracts in compliance with the requirements of G.S. 143-129(e)(2).

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 As soon as reasonably possible after the state of emergency has ended, any contracts
executed by the City Manager pursuant to this emergency exception shall be placed on a
City Council meeting agenda for ratification and approval by Council.

8. In exercising the authority to award, approve, and execute contracts, agreements, and
settlements granted by this Resolution, the City Manager shall not enter into any contract
unless:

a. The City Council shall have approved a sufficient appropriation therefor in the annual
budget for the current fiscal year, in compliance with the Local Government Budget
and Fiscal Control Act; and
b. The City Manager has complied with any applicable legal requirements; and
c. In the case of a settlement, the City obtains a complete release of any and all damages
arising from the matter complained of; and
d. The city attorney shall have approved such contract as to form.

9. The City Manager shall have the authority to delegate all or any part of the authority
granted to him by the city charter, any city ordinance, or this or any other resolution of
Council, to any agent or employee of the City of Wilmington that he may so designate,
unless specified otherwise in the underlying individual grant of authority.

10. Any Resolution adopted prior to this Resolution is hereby repealed to the extent that such
Resolution provides a stricter limitation on the City Manager’s authority than is granted
herein.

11. Table A, attached hereto, shall provide a ready reference of the authority limits
granted to the City Manager herein. In the event of any inconsistency, the language of
this Resolution shall control over the attached Table.

Adopted at a ________________ meeting

on ____________________ 2018
Bill Saffo, Mayor

ATTEST: APPROVED AS TO FORM:

Penelope Spicer-Sidbury, City Clerk City Attorney

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 TABLE A

CONTRACT TYPE MANAGER’S AUTHORITY

Construction or repair work Up to N.C.G.S 143-129 threshold for
formal bidding – currently $500,000
Fuel Contracts No limit except sufficient appropriation
Sponsorships Set by Sponsorship policy – currently up
to 5 years and $90,000
Leases of City Property Up to one year and $90,000
Contract Amendments & Change Orders Up to the contract budget set by City
Council + the manager’s authority for the
contract type
(Cumulative)
All other Contracts, including but not Up to $90,0000
limited to:
- Acquisition of Real Property
- Acceptance of gifts or donations
- Grant of easements, right-of-way, or
encroachment rights in or upon City
property;
- Licenses in or upon City property;
- Settlements of claims by, and
against, the City.

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