(a) The City Manager, Councilmembers, and City employees may sell or barter anything to the City, or make a contract with the City, or purchase anything from the City without the necessity of competitive sealed bids provided such sales, contract, or purchases involve a consideration of not more than five hundred dollars ($500.00) in value.

(b) Any sale, contract or purchase, of not more than five hundred dollars ($500.00) authorized under subsection (a) above, must be made at such prices or rates prevailing in the community and without favoritism or discrimination.