STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE AUTHORITY

Waive Second Reading and adopt an ordinance authorizing the City Manager to sign warrants, contracts, conveyances, and instruments requiring the City seal, in lieu of the Mayor, pursuant to California Government Code Section 40602.

California Government Code Section 40602 requires that the Mayor sign all warrants, contracts, conveyances, and instruments requiring the City seal unless the City Council adopts an ordinance designating another officer to execute those instruments. The statute expressly allows the legislative body to delegate this authority by ordinance.

Historically, the City has relied on the Mayor’s signature for execution of these documents. While this approach is compliant with statute, it can create administrative delays when time-sensitive documents require execution, particularly when coordinating with external agencies, grant administrators, and funding partners.

An ordinance authorizing the City Manager to execute these documents would provide clarity, continuity, and operational efficiency while preserving the City Council’s authority to approve contracts, agreements, and other actions as required by law.

The attached ordinance authorizes the City Manager to sign the instruments described in Government Code Section 40602(a), (b), and (c), including warrants, written contracts and conveyances, and instruments requiring the City seal. Importantly, the ordinance does not delegate approval authority. All existing City Council approval requirements remain unchanged.

This item is being brought forward in response to recent guidance received from Self-Help Enterprises and other housing and grant-administering partners indicating that the California Department of Housing and Community Development (HCD) is increasingly enforcing compliance with Government Code Section 40602. Cities that do not have a compliant signatory ordinance in place may experience delays or obstacles in processing funding amendments, conditional award standard agreements, budget revisions, and future grant awards.

From an operational standpoint, adopting this ordinance will:

• Improve efficiency in executing time-sensitive warrants, contracts, and legal instruments;

• Reduce delays caused by scheduling constraints or procedural bottlenecks;

• Ensure continued compliance with state law and evolving funding-agency requirements; and

• Support the City’s ability to efficiently execute enforcement actions, contracts, grant documents, and other instruments necessary for day-to-day operations.

This approach is consistent with best practices across California municipalities and is increasingly being requested by state and regional partners as a condition of funding administration.