Chapter 41.28
CONTRACTS
Sections:
41.28.020 Origin of contracts.
41.28.040 Contracts for personal services.
41.28.050 Contract administration.
41.28.060 Contracts for public improvements/construction.
41.28.070 Multiyear contracts.
41.28.010 General.
Contract shall mean any agreement enforceable by law between the City and one or more outside parties, regardless of form or title, for the procurement of materials, services or construction. To be effective, a contract must include offer and acceptance by competent parties and the furnishing of some good or service for an agreed monetary consideration.
(Res. 04-12 (§ 7.1), 1-16-12)
41.28.020 Origin of contracts.
Contracts may be originated in several ways before they are used by the City.
(a) State Contracts and Price Agreements. Under a permissive State law (§ 24-110-101, C.R.S. et seq.), the City may purchase from State contracts and price agreements. These contracts are entered into by the State of Colorado, Department of Administration, Division of Purchasing or other State departments with contractual authority. If these agreements have a clause acknowledged by the contractor, they may be used by other political jurisdictions, such as the City. When available and in the best interest of the City, the Purchasing Manager may forgo the bid process and purchase directly from the State award vendor(s).
(b) Cooperative Purchase Contracts. These contracts are created by a voluntary pooling of interests by governmental units. If required by the bid documents or if the contractors agree, they may be used by other political jurisdictions, such as the City. When in the best interest of the City, the Purchasing Manager has authority to “piggyback” such agreements for the acquisition of supplies and services without going through the formal bid/proposal process. Final authorization shall adhere to Chapter 41.08 GJMC requirements.
(c) City Contracts. These contracts are specifically procured by the Purchasing Division either for City-wide purposes or for a specific department. City contracts shall be filed with the contractor/vendor, and retained electronically through the City’s Records Management Program.
(Res. 04-12 (§ 7.2), 1-16-12)
41.28.030 Contract approval.
(a) Only the City Manager, his or her designated representative, Department Directors and their designated representatives and the Purchasing Manager and his or her designated representative are authorized to sign contracts which bind the City for the procurement of goods, services, insurance or construction, unless a specific delegation or exemption is made by City Council by resolution, code, regulation or letter of authority to another official or employee. Approval thresholds are as delineated in GJMC 41.08.010 through 41.08.080.
(Res. 04-12 (§ 7.3), 1-16-12)
41.28.040 Contracts for personal services.
(a) Before requisitioning approval of an individual to provide personal services to the City, the Department should be certain that no violation of law, including but not limited to Internal Revenue Service (IRS) regulations, will occur. Care must be taken to make sure the personal service contract does not establish an employer-employee relationship with the City.
(b) Generally, the following tests support a personal service contract with an individual:
(1) The individual has performed similar services on a contractual basis with other clients;
(2) The individual has paid tax withholding and Social Security withholding as a self-employed person and agrees to do so during his or her contract with the City; and
(3) The individual shall perform the duties independently without direct detailed supervision by the City to include independence in establishing work hours and location of performance of duties.
(Res. 04-12 (§ 7.4), 1-16-12)
41.28.050 Contract administration.
(a) Departmental contracts shall be administered by the using agency. The Department Director is responsible for designating the contract administrator (aka project manager or project coordinator) prior to the solicitation of personal service contracts. Public works projects shall be administered by the City Engineer or designee.
(b) The departmental contract administrator shall be responsible for assuring that the contractual relationship is completed successfully and in accordance with contract terms and conditions. The contract administrator may or may not be a City employee.
(c) Among the activities of a contract administrator are the following:
(1) Inspecting, accepting and recording contractor performance;
(2) Communicating the City’s requirements to and with contractors;
(3) Evaluating contractor performance;
(4) Notifying Purchasing promptly of any disputes, failures to perform or other problems with contractors;
(5) Documenting all activities of the contract and assuring copies of important documents are retained and/or forwarded to Purchasing; and
(6) Processing payments and contract close-out documents.
(d) It shall be the Purchasing Division’s responsibility to:
(1) Maintain the City’s record file of the contract;
(2) Review and approve all requests for changes in delivery, price or specification before any action is taken by the department or contractor;
(3) Create purchase order(s);
(4) Resolve disputes with contractors;
(5) Issue cure notices, demand letters and contract default/termination notices to contractors.
(Res. 04-12 (§ 7.5), 1-16-12)
41.28.060 Contracts for public improvements/construction.
(a) Contracts for public improvements (construction) shall be initiated by the Purchasing Division in accordance with City of Grand Junction bidding procedures. These contracts are subject to approval in accordance with the authorization limits stated herein.
(b) When a contract for public improvements is awarded in excess of $50,000, the following bonds or security shall be delivered to the City and shall become binding on the parties upon execution of the contract:
(1) A performance bond satisfactory to the City, executed by a surety company authorized to do business in the State of Colorado or otherwise secured in a manner satisfactory to the City, in an amount equal to 100 percent of the price and/or compensation specified in the contract; and
(2) A payment bond satisfactory to the City, executed by a surety company authorized to do business in the State of Colorado or otherwise secured in a manner satisfactory to the City, for the protection of all persons supplying labor and material to the contractor or its subcontractor for the performance of the work provided for in the contract. The bond shall be in an amount equal to 100 percent of the price and/or compensation agreed to in the contract.
(c) Nothing in this chapter shall be construed to limit the authority of the City to require a performance bond or other security in addition to those bonds or in circumstances other than those specified.
(Res. 04-12 (§ 7.6), 1-16-12)
41.28.070 Multiyear contracts.
Unless otherwise provided by law, a contract for supplies or services may be entered into for a period of time deemed to be in the best interest of the City, if conditions of renewal or extension are included in the solicitation. Payment and performance obligations for succeeding fiscal years shall be subject to availability and appropriation of funds thereof.
When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal year, the contract shall be canceled and the contractor may be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies or services delivered under the contract.
Annual service and product contracts may be renewed by the Purchasing Manager and Department Director up to three additional contract periods, based on satisfactory performance of the contractor.
(Res. 04-12 (§ 7.7), 1-16-12)