A. Except for purchase orders, the mayor or designee shall sign all contracts.
B. Exclusivity of Contracts: Exclusive and non-exclusive contracts may be awarded by the city at any time. Unless a contract specifically states it is exclusive, it shall be deemed to be nonexclusive. "Nonexclusive" means that the city may award multiple contracts to more than one contractor(s) for similar goods or services, as it deems appropriate.
C. Period of Time for Contracts:
1. Permitted Contract Duration: Unless otherwise prohibited or unauthorized as stated in this section, contract(s) for goods and services may be entered into for any period of time stated in the bidding documents and is deemed to be in the best interest of the city. Term renewals as stated in the contract are allowed without additional mayor approval provided that the council has approved the expense within the current fiscal year.
2. Prohibited Contract Duration: "Open-ended" (starting date only) contracts and "evergreen" (automatically renewed) contracts are prohibited, unless authorized by the purchasing manager in writing or otherwise authorized by federal or state law.
D. Contract Amendments: Contracts (including purchase orders) may be amended, modified or supplemented only by written amendment, executed by the parties to the contract.
E. Change Orders:
1. For Building Improvements and Public Works Projects: A department head is authorized to approve a change order on building improvements and public works projects in a single amount or total aggregate amount (when multiple change orders exist for the same project) not to exceed twenty percent (20%) ("20% Approval Limit") of the contract so long as (i) there is funding available in the budget, (ii) does not materially change the original scope of work, and (iii) the change order is in the best interests of the city according to the department head. Notice of such provision may be included in the IFB or RFP.
2. For Goods and Services Not Listed in 3-1-14(E)(1): A department head is authorized to approve a change order for goods and services in a single amount or total aggregate amount (when multiple change orders exist for the same good or service) not to exceed ten percent (10%) ("10% Approval Limit") of the contract so long as (i) there is funding available in the budget, (ii) does not materially change the original scope of work and (iii) the change order is in the best interests of the city according to the department head.
3. Mayor Approval Required: A department head must obtain the mayor's written approval for any change order, which when added to the aggregate amount of all other prior change orders related to the same project, if any, exceeds the 20% Approval Limit or 10% Approval Limit, as applicable.
F. Bonds and Other Security: Bid, payment, and performance bonds or other securities may be requested for contracts as the purchasing manager or designee deems advisable to protect the city's interests. Any such bonding or other security requirements shall be set forth in the solicitation. Bid, payment and performance bonds shall not be used as a substitute for a determination of a bidder or offeror's responsibility. (Ord. 19-54, 12-11-2019, Effective at 12 noon on January 6, 2020)