§ 2-309. Leases and Contracts. 15

   (1)   The Council may by ordinance authorize the leasing of real estate for more than one year and the contracting for personal property to be supplied or for services to be rendered over a period of more than one year without making appropriations therefor beyond the current year. Such leases and contracts shall be valid and binding upon the City although no appropriations have been made for the ensuing years during which the leases and contracts are to be operative; but it shall be the duty of the Council to make subsequent appropriations from year to year to pay amounts coming due under such leases and contracts. The obligation of the City under such leases and contracts shall not be considered to be a part of the indebtedness of the City. For purposes of this section and Sections 8-200 and 8-201, the following contracts and leases shall be deemed to be for the supply of property or the rendering of services over a period of more than one year or to have a term of more than one year, and therefore require authorization by ordinance to be effective and binding on the City:

      (a)   Any contract or lease that contains a stated term in excess of one year;

      (b)   Any contract or lease that grants any party or parties thereto, other than the City, the option to extend the term of said contract or lease beyond one year;

      (c)   Any contract or lease that grants any party or parties thereto, other than the City, the option to renew said contract or lease for an additional term or terms such that the total of the original and any potential renewal terms exceeds one year; or

      (d)   Any contract or lease that provides that unless one or more parties to the contract, including the City, give notice of non-extension or non-renewal, the term of the contract or lease will:

         (.1)   automatically be extended beyond one year; or

         (.2)   automatically be renewed for an additional term or terms such that the total of the original and any potential renewal terms exceeds one year.

   (2)   No option to renew or extend the term of a contract or lease shall be exercised by the City if the total of the original and any renewal or extension terms exceeds one year, unless the head of the contracting department or agency files with the Mayor, the President of Council, the Chief Clerk of Council, and the Department of Records a written certification that such renewal or extension is in the best interest of the City. The Department of Records shall make such certifications available for public inspection, and shall arrange for publication of such certifications on the City's official website in a searchable format. No renewal or extension of a contract or lease effected without compliance with this subsection shall be binding upon the City.

   (3)   Council shall have power by ordinance to address public confidence in the integrity of the City's contracting process by requiring certain disclosures by persons seeking City leases, contracts, concessions, or other agreements of any kind, and persons who have entered into such agreements, including, but not limited to, disclosure of campaign contributions and disclosure of relatives who are City employees, and by providing by ordinance as to whether persons who have made, have solicited or have been otherwise involved in raising certain campaign contributions may be eligible or ineligible for City leases, contracts, concessions, or other agreements of any kind, or for a grant, loan, tax incentive, or other form of financial assistance from the City.

   (4)   For purposes of this subsection, "EOP Ordinance" means an ordinance that requires certain or all City contracts and awards of financial assistance to include provisions requiring a contractor or recipient of City financial assistance to submit an economic opportunity plan that addresses the participation of disadvantaged business enterprises and workforce diversity, and to demonstrate best and good faith efforts to comply with such plan. Council's power to enact EOP Ordinances is hereby confirmed, as is Council's power to ordain that a contractor or recipient of City financial assistance may, after notice and hearing, be debarred from doing business with the City or receiving City financial assistance for a specified period of time for failure to exercise best and good faith efforts to comply with an economic opportunity plan. An ordinance providing for such debarment may specify procedures for such debarments by conferring powers and duties on existing City agencies, including Council, or by creating new agencies for such purposes. 16

   (5)   For purposes of this subsection, "Minimum Wage and Benefits Ordinance" means an ordinance that requires the City, those who contract with the City, and/or recipients of City financial assistance to provide their employees with a minimum level of pay and benefits, and/or that provides that certain or all City contracts include provisions mandating compliance with such a requirement, and that may include such other provisions as Council considers necessary or appropriate to accomplish the purposes of such an ordinance, including, but not limited to, provisions that require those who contract with the City or are recipients of City financial assistance to pass along the requirements of such an ordinance to subcontractors (at any tier) and subrecipients (at any tier); and provisions that authorize the granting and revocation of waivers from any or all of the requirements of such an ordinance. Council's power to enact Minimum Wage and Benefits Ordinances is hereby confirmed, as is Council's power to ordain that a contractor or recipient of City financial assistance, or any subcontractor (at any tier) or subrecipient (at any tier), may, after notice and hearing, be debarred from doing business with the City or receiving City financial assistance for a specified period of time for failure to comply with such requirement. Council may not ordain differing minimum levels of pay and benefits for different categories of covered City employees. Notwithstanding any other provision of the Charter, an ordinance providing for such debarment, and an ordinance providing for the granting and revocation of waivers, may specify procedures for such debarments and waivers by conferring powers and duties on existing City agencies, including Council, or by creating new agencies for such purposes. 17

   (6)   Contracts for a period of one year or less, and renewals or extensions of such contracts. 18

      (a)   The following contracts, renewals and extensions may be made only when permitted by Ordinance:

         (.1)   Contracts for the rendering of services over a period of one year or less that involve an expenditure of more than one hundred thousand dollars ($100,000) for the purpose of providing legal representation and related services for indigent persons, including but not limited to parents and children who are subjects of dependency proceedings; criminal defendants; persons in juvenile justice proceedings; persons involved in behavioral health proceedings; and indigent persons involved in other proceedings where legal representation is required as a matter of law or by court order.

         (.2)   Any renewal or extension of the term of a contract described in subsection (.1), including the renewal or extension of the term of a contract entered into prior to the effective date of this subsection (6).

      (b)   Exemptions.

         (.1)   Council may by Ordinance exempt from the requirements of subsection (6)(a) any contract, including any renewal or extension, that would otherwise be subject to those requirements.

         (.2)   Any contract, including any renewal or extension, with the following organizations that would otherwise be subject to the requirements of subsection (6)(a) shall be exempt from those requirements unless Council provides by Ordinance to the contrary: the Defender Association of Philadelphia, the Support Center for Child Advocates, and Community Legal Services.

      (c)   The requirements of this subsection (6) are in addition to any requirements imposed by other provisions of this Charter.

ANNOTATION

   Sources:   Act of June 25, 1919, P.L. 581, Article XVII, Section 7.

   Purposes:   This section continues comparable provisions of the Charter of 1919. It permits the City to enter into long-range contracts which may be of advantage to it. See Section 8-200(3).

 

Notes

15	Amended, and new subsections (2) and (3) added, by approval of the voters at the election held on November 8, 2005 and certified on December 1, 2005. See Resolution No. 050428 (adopted May 26, 2005).
16	Added by approval of the voters at the election held on May 18, 2010, and certified on June 7, 2010. See Bill No. 090519 (approved March 17, 2010); Resolution No. 090529 (adopted March 11, 2010).
17	Added by approval of the voters at the election held on November 2, 2010, and certified on November 22, 2010. See Bill No. 090580-AA (approved June 16, 2010); Resolution No. 090610 (adopted May 13, 2010). Enacting legislation added this as subsection (4); renumbered by Code editor. Amended by approval of the voters at the election held on May 20, 2014, and certified on June 9, 2014. See Bill No. 130532 (approved October 9, 2013); Resolution No. 130544 (adopted September 26, 2013).
18	Added by approval of the voters at the election held on May 20, 2014, and certified on June 9, 2014. See Bill No. 130851 (became law March 6, 2014); Resolution No. 130861 (adopted February 20, 2014).