All contracts and leases to which the city is a party on the effective date of this charter shall remain in full force and effect.
The authority to contract on behalf of the city is vested in the Commission and shall be exercised in accordance with the provisions of statute and of this charter, provided that purchases and sales may be made by the City Manager subject to the provisions of Section 13.1. The Commission shall establish procedures for the letting and making of contracts, but no contract except (a) an agreement of employment or (b) an agreement for the purchase or sale of goods, wares or merchandise in an amount of one thousand dollars or less, shall be made unless the same shall have first been submitted to the Attorney and his opinion obtained with respect to its legality and form and unless the officer charged with maintaining the accounting system of the city shall first have certified that an appropriation has been made for the payment thereof, or that sufficient funds will be available if it be for a purpose to be financed by the issuance of bonds or special assessments or for some other purpose not chargeable to a budget appropriation. In the case of a contract obligating the city for periodic payments in future fiscal years for the furnishing of a continuing service or the leasing of property, such certification need not cover those payments on the contract which will be due in future fiscal years, but this exception shall not apply to a contract for the construction of a public improvement. A copy of all contracts requiring such opinion and certification shall be filed in the office of the Clerk. No contract shall be divided for the purpose of circumventing the dollar value limitation contained in this section.
No contract shall be amended after the same has been made except upon the authority of the Commission except that the City Manager may amend contracts for purchases and sales made by him under the authority of Section 13.1.
No compensation shall be paid to any contractor except in accordance with the terms of the contract.
No contract shall be made with any person, firm or corporation who is in default to the city.
Statutory reference:
Restriction on making contracts with persons in default to city, see M.C.L.A. § 117.5(f)