§ 14.3. Limitations on Contractual Power.

(a)

The Council shall have power to enter into contracts which by the terms thereof, will be fully executed within a period of ten years. Except contracts exempted from the limitations of this section, contracts which, by the terms thereof, will not be fully executed within a term of ten years shall first receive the approval of a majority of the qualified electors voting thereon at a regular or special election before they shall be binding on the city. The total of the amounts of principal payable under all contracts which will not be fully paid within the fiscal year in which executed shall not exceed an amount equal to one-quarter of one percent of the assessed value of all real and personal property in the city. The limitations of this section shall not apply to any contract for services with a public utility or one or more other governmental units, to contracts for debt secured by bonds or notes which are permitted to be issued by the city by law, nor to any contract for a term of years which may be permitted by law.

(b)

The city shall not have power to purchase, sell, lease, or dispose of any real estate, unless:

(1)

Such action is approved by the affirmative roll call vote of five or more members of the Council, and, unless;

(2)

In the case of real estate owned by it, the resolution authorizing the sale, lease, or disposal thereof shall be completed in the manner in which it is to be finally passed and has remained on file with the Clerk for public inspection for twenty-one days after its original introduction at a meeting of the Council before the final adoption or passage thereof and, unless;

(3)

When the proposition is to sell any park cemetery or any part thereof, except when such park is not required under an official master plan of the city, or any property bordering on a water front, the proposition to sell, lease, or dispose of the same shall also be approved by a three-fifths vote of the electors of the city voting thereon at any general or special election.

(c)

Except as provided by ordinance authorized by Section 14.2 of this chapter, each contract for construction of public improvements or for the purchase or sale of personal property shall be let after opportunity for competitive bidding. All bids shall be sealed before filing with the Clerk and shall be opened in public in the Council room by the Clerk at the time designated in the notice of letting and shall be reported by him to the Council at its next regular meeting or special meeting called for that purpose. The Council may reject any or all bids, if deemed advisable. If, after two or more opportunities for competitive bidding, no bids are received or such bids as were received were not satisfactory to the Council, it may either endeavor to obtain new competitive bids or may authorize the City Manager or other proper official of the city to negotiate for a contract in the open market.

(d)

No contract shall be made with any person who is in default to the city.

(e)

No extra compensation shall be paid to any agent, employee, or contractor after the service has been rendered or the contract entered into.

State law reference

Restriction on making contracts with persons in default to city, MCL 117.5(f), MSA 5.2084(f).