A. The purchasing agent may issue the following types of contracts either on his or her own initiative for $3,000 or less, up to $30,000 with proper authority and with City Council action for those areas over $30,000, after City Attorney review and concurrence.
1. Fixed price contract.
2. Lease. A lease may be entered into only after the purchasing agent determines in writing that:
a. A lease is advantageous to the city;
b. All conditions for renewal and cost determination are set forth in the lease; and/or
c. The lease is not used to circumvent required procurement procedures.
3. Lease with purchase option.
4. Time and material contracts and labor hour contract.
a. Cost-plus or cost incentive contracts shall not be used.
b. Fixed price contracts. A fixed-price contract may be used if:
i. The extent and type of work necessary to meet city requirements to the city can be reasonably specified;
ii. A firm fixed-price contract may be used if prices advantageous to the city can be established at the outset of the contract; and
iii. Fixed-price contract with price adjustment.
(1) The solicitation for a fixed-price contract with price adjustment and the contract shall specify the basis for determining the price adjustment.
(2) Notice of price adjustment shall be given by the contractor in the manner and within the time specified in the contract.
B. 1. Time and materials and labor hour contracts shall contain a stated ceiling or an estimate of a contractual amount that shall not be exceeded without prior approval of the purchasing agent.
2. A time and materials or labor hour contract may only be used if:
a. Personnel have been assigned to closely monitor the performance of the work;
b. It is advantageous to the city to use the contract; and
c. No other contract type is practicable.
C. The City Council shall have the final approval authority on all purchases for supplies, materials, equipment or services requiring a bid.
(Res. 2008-011, passed 2-19-2008)