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Resolutions & Council Authorization

The Common Council must authorize any contracts for the City. No one can sign a contract without authorization from the Council.

Do I need a resolution?

Some contract types are preauthorized. If your contract is not preauthorized, you’ll need to introduce a resolution to Council to authorize someone, usually the Mayor and Clerk, to sign the contract.

Preauthorized Contracts

  • Some purchasing contracts, including POS contracts, are preauthorized by MGO 4.26, based on price, whether competitive selection was used, and number of years. Visit the Quick Chart for details.
  • The Police Chief is authorized to sign Police Special Duty contracts by a resolution adopted in 1995.
  • Some contracts for small grants from the City are authorized by the resolution creating a City Committee or Commission, such as the Food Policy Council, or an annual resolution, such as Madison Arts Commission Arts Grants. 
  • Rarely, a contract to spend money will be authorized directly in the operating budget. 
  • Occasionally, a federal or state grant contract will specify a subrecipient or contractor by name.

Resolution Required

A Council resolution authorizing a contract is required for any contract that is not preauthorized. Common examples include:

  • The following POS contracts require a resolution because they are not preauthorized by MGO 4.26:
    • Services for more than 5 years (including renewals)
    • 1 to 5 years (including renewals) if the average cost is more than $100,000 per year.
    • Sole source or noncompetitive contracts of more than $75,000 in total (or $75,000 per year for annual technology subscriptions)
  • Public Works Contracts: More than $25,000
  • Most non-purchasing contracts, such as Intergovernmental Agreements, require a resolution.
  • Agreements where the City receives money, or agrees to perform a service for another party, including grants to the City, require a resolution. 

Process

Departments are responsible for drafting the resolution to authorize a contract and entering it into Legistar.

Contracts do not have to be finalized before you introduce the resolution. You will have time to finalize the contract details as the resolution goes through the legislative process. However, the resolution must include the final cost / financial details – either a specific dollar amount or “not to exceed” amount. 

  1. Draft the Resolution

    Write a resolution to authorize the contract. To learn more, go to Drafting a Resolution below.

  2. Secure a Sponsor (Alder and/or Mayor)

    Send a draft resolution to potential sponsors with plenty of time for them to review and get back to you before the Clerk’s Office agenda deadlines. 

    The Mayor can be a good choice to sponsor if there isn’t an obvious alder interested in your project.

  3. Enter in Legistar

    Enter the resolution by the Tuesday before the Council meeting, and meet all of the Clerk’s Office agenda deadlines.

    Do not attach the contract (final or draft) to the Legistar file.

    If the contractor was selected noncompetitively, attach a copy of the Noncompetitive Selection Request Form to the Legistar file.

  4. Referrals & Adoption

    Resolutions usually take about 4 weeks to be approved. They are introduced to Council, referred to the Finance Committee, any other relevant committee, and returned to Council for adoption.

    Resolutions take effect on the day the Mayor signs the proceedings from the Council meeting where it was adopted. This is usually the Friday after the meeting. The City cannot sign the contract until the Mayor signs the proceedings.

Drafting a Resolution

Resolutions in Legistar have a Title, Fiscal note, and Body. You are responsible for drafting the Title and the Body. Include the following information in the Body of your resolution:

  • Contractor name: Full legal business name of the contractor, including any Inc., Corp., LLC, etc. and accurate punctuation.
  • Purpose: Description or summary of the goods or services to be purchased and why the contract is needed.
  • Selection process: Whether the contractor was selected through a competitive selection process, if so, provide RFP or RFB number and a short summary (how many bidders, etc.)
  • Cost: Full dollar amount of contract,  or a “not to exceed” amount,  or how fees are calculated (hourly rate, etc.) with a maximum amount. 
    • If a budget amendment (appropriation) is needed to pay for the contract, the resolution requires special language and a ¾ vote. Consult your Budget Analyst in Finance.
  • Duration (Term): The length of the contract, including any renewal or extension options. For software, you may need to seek authority in your resolution to contract for the “useful life of the software”.
  • Who signs: A clause authorizing appropriate City official(s) to sign the contract for the City. Usually, this will be the Mayor and City Clerk. If applicable, include authorization for renewals or extensions and who signs them. Finance Director countersignature is required for all contracts that spend money.
    • Note that while the resolution only names the mayor and clerk as signers, APM 1-1 requires all contracts signed by the Mayor to be “routed” in Accela and reviewed by Civil Rights, Risk Management, Finance, and the City Attorney.

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