Chapter 3.30


3.30.010    Purpose.

3.30.020    Definitions.

3.30.030    Contract requirements.

3.30.040    Council review of Junction City contracts.

3.30.050    Contract review process.

3.30.060    Signature and spending authority.

3.30.070    Contract amendments.

3.30.010 Purpose.

This document describes the council and legal review requirements for city of Junction City contracts, the required reviews by the initiating departments, and outlines signature authority for Junction City contracts. [Ord. 1227 § 1, 2014.]

3.30.020 Definitions.

A. Contract. A contract is any legally enforceable agreement whether or not it is titled “contract.” Contracts include, but are not limited to, letters of agreement, licenses, memoranda of understanding, and terms and conditions related to all types of transactions. An agreement may be a binding contract even though one party provides something of value to the other party, at no charge; no financial transaction is required. [Ord. 1227 §§ 2, 2.1, 2014.]

3.30.030 Contract requirements.

A. All city contracts must be in writing.

B. All contracts shall refer to the city by its correct legal name, “The City of Junction City.” [Ord. 1227 § 3, 2014.]

3.30.040 Council review of Junction City contracts.

A. Contracts Requiring Council Review. Unless exempt under subsection (B) of this section, contracts to which the city is a party must be reviewed and approved by the city council prior to execution. Signing a contract on behalf of the city may have legal implications for the city. Contracts signed without obtaining proper approval may, if the city chooses not to honor the contract, result in personal liability for the individual signing the contract.

B. Exemptions from Council Review. The following types of contracts are exempt from council review:

1. City equipment and facility rental agreements authorized by council resolution.

2. Routine purchase orders and bills of sale which fall within delegated purchasing authorities and spending limits established by council resolution.

3. Public improvement contracts within delegated spending limits established by council resolution. [Ord. 1227 §§ 4 – 4.2, 2014.]

3.30.050 Contract review process.

A. Initial Review by the Initiating Department. Initiating departmental review should focus on the business implications of the terms and conditions of the contract. The initiating department must determine what terms it can or cannot agree to and what terms require negotiation with the contractor. Issues to consider during this review include, but are not limited to:

1. Whether the appropriate solicitation process was followed prior to contract award.

2. Whether the contract terms and conditions, including duties of the parties, are clear, consistent, incorporate applicable standard city terms, and are acceptable to city and the department.

3. Whether the city, department, or unit has the necessary funds and resources for the contract.

4. Whether the contract is appropriate and serves the department’s mission and responsibilities.

5. Whether the goods and/or services provided are the most feasible for the city in terms of quality and cost.

6. Whether the contract includes the entire understanding between the parties, without additional oral explanations or promises that are not included within the contract.

Department council agenda item summaries (AIS) shall summarize background information regarding the purpose of the contract in order to aid the review process and set forth departmental comments or concerns regarding the contract terms.

B. Legal Review. Legal contract review requires up to 10 business days. Where a contract requires complex negotiations over terms and conditions, new contract terms must be drafted, or there is a signing deadline, staff may include city legal counsel early in the process.

1. Review by city legal counsel ensures that:

a. City abides by state and federal laws.

b. City is operating in accordance with city policies and procedures.

c. City does not agree to any prohibited clauses.

d. Risk management concerns are raised for staff, council, and/or insurance carrier consideration.

2. Legal review determines the legal validity of a contract and raises practical or risk management considerations, as opposed to determining whether a contract is appropriate from a business and administrative perspective. The final decision to enter into a contract is the responsibility of the city department initiating the contract and the ultimate review authority pursuant to this chapter. [Ord. 1227 §§ 5 – 5.2, 2014.]

3.30.060 Signature and spending authority.

Only authorized individuals may sign contracts on behalf of city. The appropriate signature authority is dependent on the type of contract and its value, and is established by council resolution, as in Exhibit A attached to the ordinance codified in this chapter. [Ord. 1227 § 6, 2014.]

3.30.070 Contract amendments.

Contracts shall only be amended pursuant to the provisions of the original agreement and JCMC 2.55.030.

A. Total Price. Contract amendments must be authorized and processed according to the requirements of this chapter. The total cost of the contract, as amended, must be used to determine the appropriate approval method.

B. Form. Contract amendments must be in writing, in the same form as the original agreement, and must expressly specify amended and unchanged terms and conditions. [Ord. 1227 §§ 7 – 7.2, 2014.]