(a) Grant of authority. Subject to the restrictions and conditions thereinafter provided, when purchasing apparatus, supplies, materials, equipment, construction services, or professional services, for use by the town in addition to such authority as may be provided by law and/or otherwise delegated by the town council, the town manager shall have the authority to:
(1) Prepare, or cause to be prepared, plans and/or specifications setting forth a complete description of the item to be purchased and the characteristics, features and/or requirements therefor;
(2) Include, where appropriate in specifications for the item to be purchased, an opportunity for bidders to purchase as trade-in specified personal property owned by the town;
(3) Advertise, or otherwise secure bids, for such item, if required under applicable law;
(4) Award contracts for the purchase of the item, and, where applicable, award contracts for the purchase of the item and the sale of trade-in-property up to the thresholds provided for by this article;
(5) Reject bids;
(6) Re-advertise to receive bids;
(7) Waive bid bond or deposit requirements;
(8) Waive performance and payment bond requirements; and
(9) Execute and deliver the purchase contract.
(b) Report. At the first meeting of the town council following the award of any contract in the informal and formal range pursuant to this article, the town manager shall submit a report to the town council summarizing the bids received and the contract awarded. Such report shall be included in the minutes of the meeting at which it is received.
(c) Extent of authority. Except in cases of sole source purchases pursuant to G.S. 143-129(f) and cases of purchases from established contracts pursuant to G.S. 143-129(g), unless otherwise provided by law, the provisions of this article shall apply to all contracts required for use by the town.
(d) No limitation of other authority. The provisions of this article are not intended to limit, restrict or revoke, in any manner, authority otherwise granted and/or delegated to the town manager by statute, law or action of the town council.
(e) Appropriation required. No purchase shall be made by the town manager under authority of this article, unless an appropriation for such purpose has been authorized in the annual budget, or by supplemental appropriation or budget appropriation amendment duly adopted by the town council.
(f) Application of general statutes. In acting pursuant to the authority delegated by this article, the town manager shall comply with the requirements of G.S. ch. 143, art. 8, as from time to time amended, modified, supplemented, revised, or superseded, to the same extent as would have otherwise applied to the town council.
(g) Contract approval. The town council must approve all contracts that meet the following criteria:
(1) Contracts greater than $30,000.00 with or without budgetary authority.
(2) Contracts exceeding budgetary approval, which require a budget amendment.
(3) Contracts with terms greater than one year.
(4) Contracts subject to statutory informal or formal bid thresholds.
(5) Contracts suggesting a significant policy change, as determined by the town manager.
(6) Project change orders that exceed approved cost of the contract and budgeted funds.
(h) Contract execution by town manager. The town manager may execute contracts without additional town council approval, if the contract meets all of the following conditions:
(1) Contracts less than $30,000.00 that have been authorized by the town council through direct award or budget authorization.
(2) Contracts that are less than one year.
(3) Equipment leases or rentals for less than one year, which require a budget amendment.
(4) Project change orders that do not exceed the total capital budget and are not a significant change in project scope or design.
(i) Contract conditions. Department heads or designees may execute purchase, maintenance or service contracts if the contracts meet all of the following conditions:
(1) Contracts less than $5,000.00 that have been authorized by direct award or budget authorization.
(2) Contracts or agreements less than one year.
(3) Upon utilization of standard contract document or contract review process.
(4) Equipment leases or rentals for less than one year, which do not require a budget amendment.
(j) Contract documents. All contracts for which the contractor will perform work or provide services for the town must be accompanied by the standard town contract form or a contract approved by the town attorney. The contract must follow all procedures and contain all necessary insurance and payment options. A copy of the completed and signed contract must be forwarded to the town clerk and if necessary to the finance department for requisition approval. The town will not enter into contractual agreements that are subject to automatic renewal and will attempt to structure contracts to coincide with the fiscal year.
(k) Contract review form. Unless a department is utilizing the standard town contract, all contracts must be circulated through the utilization of the Contract Review Form (CRF) (attached to the ordinance from which this section is derived). The contract cannot be executed until all applicable parties have signed the CRF. The town manager or department head will execute or authorize the execution of the contract once they are satisfied that all review have been completed.
(l) Finance officer review. Regardless of form, no contract may be executed unless the town finance director has pre-audited the contract in the manner required by the Local Government Budget and Fiscal Control Act. Contracts funded with federal grant or loan funds must be procured in a manner that conforms with all applicable federal laws, policies, standards, including those under the uniform guidance (2 CFR 200).
(Code 1989, § 22.02; Ord. of 8-14-2018)