The municipality may, pursuant to an award in accordance with chapter 7.20, contract with any person to acquire any supplies, services, professional services or construction required by the municipality.
(AO No. 79-203, 1-1-1980)
No contract for supplies, services, professional services or construction, or any amendment thereto, may be enforced against the municipality unless its terms have been approved in accordance with this chapter and unless the contract or amendment thereto has been set forth in a writing executed in accordance with this chapter.
(AO No. 79-203, 1-1-1980)
No contract for supplies, services or construction may be approved or executed unless the chief fiscal officer has certified, in accordance with section 6.30.050, that funds are available for the municipality's performance under the contract. In the case of contracts not requiring assembly approval, the requirement of this section shall be deemed satisfied where the municipality's financial system of record shows that unencumbered funds in an amount sufficient to cover the municipality's obligations are available in account, or accounts, from which the contract is to be paid.
(AO No. 79-203, 1-1-1980; AO No. 2025-37, § 3, 5-16-2025)
A.
Assembly approval of contracts. In addition to a contract described in subsection F, no contract for supplies, services, professional services or construction whereby the municipality is obligated to pay more than $500,000.00 pursuant to a contract awarded through competitive procedures (which are described in sections 7.20.020 through 7.20.040 (bids) and section 7.20.060 (proposals)) or more than $500,000.00 pursuant to a contract awarded pursuant to section 7.20.080A.1 (intergovernmental, utility, and post-secondary educational agreements) or section 7.20.080A.2 (cooperative purchases; piggybacking), or more than $250,000.00 pursuant to a contract for legal services awarded pursuant to section 7.20.100A, or more than $50,000.00 pursuant to a contract awarded through other authorized procedures, including any amendment pursuant to awards under section 7.20.080A.5, may be executed unless the assembly has approved a memorandum setting forth the essential terms of the contract and information required by this section.
1.
Essential terms. To the extent applicable for particular contracts, the following essential terms shall be set forth:
2.
Required information. To the extent applicable for particular contacts, the following additional items shall be set forth:
a.
ITBs. For contracts awarded pursuant to an invitation to bid (ITB), the requesting department's recommendation of award, the name of all bidders, whether any bidders were deemed non-responsive or non-responsible, and the price submitted by each bidder.
b.
RFPs. For contracts awarded pursuant to a request for proposals (RFP), the requesting department's recommendation of award, the name of all bidders, and whether any bidders were deemed non-responsive or non-responsible.
c.
Cooperative purchases. For contracts issued pursuant to any Federal, State, or local government contract where the municipality is an authorized user, or where the resulting contractor agrees to extend the same terms, conditions, and pricing to the municipality as those awarded under the original contract, details regarding the original contract, and confirmation that it was awarded pursuant to a formally advertised solicitation.
d.
Purchases recommended by contractor. For contracts pursuant to a formal recommendation by a municipal contractor specifically tasked with researching and/or reviewing the marketplace for qualified products or services, the identity of the recommending contractor, and the means by which the contractor was retained.
e.
Sole source. For contracts where the purchasing officer determines in writing that the municipality's requirements reasonably limit the source for the supplies, services, professional service or construction to one person, confirmation of the purchasing officer's determination.
B.
Assembly reporting.
1.
Procurements not requiring assembly approval AIM. All contracts awarded through competitive procedures, or awarded pursuant to section 7.20.080A.1, that are more than $50,000.00 and up to $500,000.00, or procured by direct negotiation pursuant to 7.20.100A. that are more than $50,000.00 and up to $250,000.00, shall be reported to the assembly in an informational memorandum once each month and no later than 45 days after award. The report shall contain the information described in subsection A.1.
2.
Sole source and single source AIM. All contracts awarded pursuant to section 7.20.080A.5 (sole source) and section 7.20.080A.6 (single source) shall be reported to the assembly in an informational memorandum once each month, and no later than 45 days after award.
3.
Non-encumbering contracts; purchase order limits and annual reporting. For non-encumbering contracts approved by the assembly under subsection A, the following requirements shall also apply.
a.
Imputed value for purposes of Assembly approval. For purposes of determining whether the contract must receive prior approval of the assembly, the maximum amount of purchases orders that could be issued under the contract for its initial term and all extensions shall be considered, for purposes of subsection A only, the amount that the municipality is "obligated to pay."
b.
PO limit. The magnitude of the maximum allowable purchasing order that can be issued under the contract shall be deemed an essential term of the contract for purposes of subsection A, and reported to, and approved by the assembly.
c.
Annual reporting. The department shall annually report to assembly by informational memorandum the total amount of funds expended under the contract where such funds were expended by more than a single department.
C.
Awards to more than one bidder pursuant to a single ITB. If contracts are awarded to more than one bidder pursuant to an invitation for bids, contracts with different bidders shall be considered separately for purposes of determining the application of subsection A of this section. If any contract to be awarded under a given bid is subject to assembly approval, the award of other contracts pursuant to the same invitation for bids may, at the discretion of the purchasing officer, be delayed pending assembly approval.
D.
Assembly approval of grants. No grant for more than $50,000.00 may be issued unless the assembly has approved a memorandum setting forth:
E.
Prior approval and review required. No contractor may provide supplies, services, professional services, or construction to the municipality before the applicable requirements of this section are first satisfied. No contract for construction which exceeds $3,500,000.00 may be executed unless it has first been reviewed for a community workforce agreement as required by section 7.15.045.
F.
Lobbying contracts. Regardless of the amount involved, all contracts for professional lobbying services must be approved in advance by the assembly.
G.
CM/GC and compensation-from-revenue-generated-from-use-of-municipal-property contracts. Notwithstanding the dollar amount thresholds for procurement methods or contract types stated in subsection A, the following types of contracts are subject to the requirements of assembly approval prior to execution, in addition to reporting requirements, as stated herein:
1.
Construction manager/general contractor (CM/GC) contracts.
a.
Definition. A CM/GC contract means an agreement for construction projects that is generally phased to first require a construction manager to deliver design and construction schedules, and estimated costs for the construction of the project. Upon acceptance by the municipality of the contracted construction manager's proposed costs developed in the first phase, the contract is amended to add the costs and construction work by that contractor.
b.
Award procedure and public process. Awards for the first phase and all subsequent phases shall be approved by the assembly before execution of the contract or amendment for each phase. The memorandum for the assembly's approval of the first phase shall include an estimated range of the construction costs by municipal officials.
i.
The purchasing officer shall publish notice of the construction manager's proposed costs for the construction work at least seven days before a decision to accept or reject it. The date of publication and copy of the notice shall be included with the memorandum for the assembly's approval of the amendment accepting the construction manager's proposed cost or of a contract if those are rejected and the construction work is procured with a new solicitation.
ii.
The assembly shall hold a public hearing before consideration and vote whether to approve an amendment to award performance of the construction work to the construction manager.
2.
Compensation from revenue generated by use or operations contracts.
a.
Definition. This means a contract whereby the consideration includes compensation derived from revenue generated from the use or operations of municipal property or facilities on behalf of the municipality:
H.
Fragmentation prohibited. Contracts for supplies, materials, equipment or services that would customarily be acquired under a single contract shall not be divided for the primary purpose of avoiding or circumventing the requirements of this section.
(AO No. 79-203; AO No. 82-168; AO No. 93-217, § 1, 2-26-1994; AO No. 94-123(S), § 1, 8-25-1994; AO No. 2001-122(S-1), § 2, 7-24-2001; AO No. 2007-22, § 1, 2-27-2007; AO No. 2018-74, § 1, 9-25-2018; AO No. 2015-39, § 1, 5-14-2015; AO No. 2019-24, § 3, 4-1-2019; AO No. 2023-23(S), § 1, 3-21-2023;[1] AO No. 2023-108, § 1, 11-21-2023; AO No. 2025-37, § 4, 5-16-2025)
[1]
Editor's note — This ordinance also provided that "This ordinance shall be effective March 21, 2023 or immediately upon the repeal or expiration of Emergency Ordinance No. 2023-2, as amended, whichever occurs first."
Where supplies, services, professional services or construction are provided to or performed for the municipality without an assembly approval required by section 7.15.040 (assembly approval of contracts) or section 7.15.080 (assembly approval of amendments), no payment for the supplies, services, professional services or construction, including a payment made pursuant to or in connection with a settlement of claims related to a contractor's provision of the supplies, or performance of services, professional services or construction, may be made by the municipality, unless the payment is approved by majority vote of the assembly.
(AO No. 2022-105, § 1, 12-20-2022; AO No. 2025-37, § 5, 5-16-2025)
A.
Purpose and intent. It is the intent of the assembly that a community workforce agreement (CWA) review team review and evaluate qualifying municipal construction projects to consider if a CWA could be used to advance important interests held by the municipality. The municipality's public policy is to use CWAs to the fullest extent allowed by law.
B.
Qualifying project. A qualifying project shall be a municipal construction project, whether for renovation, new construction, expansion, or demolition, in which the costs are estimated to exceed the amount of $3,500,000.00. For purposes of this subsection, "costs" shall not include the costs of municipal contract management or architectural-engineering services. The overall municipal construction project shall not be divided into smaller components or phases with the intent to avoid application of the CWA policy.
C.
CWA review team. There is established a CWA review team consisting of the municipal manager, director of project management and engineering, a member of the department with the qualifying municipal project, a representative from the Building and Construction Trades Council of South Central Alaska ("Trades Council"), and a contractor representative. The director of project management and engineering shall serve as the chair of the CWA review team. A decision or recommendation of the team shall be made by a simple majority vote.
D.
Procedure.
1.
When a municipal department proposes a qualifying municipal project, before the purchasing officer procures the construction services for the project, it shall be referred to the CWA review team. The team shall determine whether a CWA is or is not required for the project, and may require a CWA if supported by the review criteria in subsection E below, and issue a decision in writing that includes a description of the relationship between use of a CWA and the municipal interests. If the team determines that a CWA is required for the project, the municipal manager shall provide the master CWA to the purchasing officer to include in the solicitation.
2.
Construction projects that do not meet the threshold amount for a "qualifying municipal project" but are phases or components of a larger municipal construction project may be referred to the CWA team for review under this section.
E.
Review criteria. The CWA review team shall consider the following factors:
1.
Government interests. The government interests and municipal goals that a CWA should fulfill may include, but is not limited to: timely and efficient completion of the municipal project, minimizing costs and delays, workplace safety, ensuring labor peace and stability, providing the municipality with the ability to negotiate and secure meaningful labor concessions, supporting and growing a qualified and competent workforce in the building and construction trades, and developing viable economic activities in the community.
2.
Qualifying municipal project characteristics. The project criteria the CWA review team should consider may include, but is not limited to: scope of the project, complexity, the unique design and construction features, specialized labor needs and volume, number and types of trades required, and timeliness considerations.
3.
Impact on bidding contractors. The CWA review team shall consider the impact on bidding contractors, particularly in regards to the costs of employee benefits.
F.
The CWA included in the procurement documents may only be revised or modified upon mutual written agreement between the contractor awarded a qualifying municipal project and the Trades Council. The parties to the CWA shall be the contractor and the Trades Council. All contractors and subcontractors shall, as a condition of performing work on the qualifying municipal project, become, and remain for the duration of the qualifying municipal project signatory to and in full compliance with the CWA. The CWA shall, at a minimum, include terms effectuating the following:
1.
Provide funding through employer contributions for bona fide apprenticeship training programs targeting youth and unskilled adults to place trainees to work on the qualifying municipal project;
2.
Promote employment on the qualifying municipal project of apprentices enrolled in such programs;
3.
Encourage the employment of military veterans, members of the National Guard or reservists;
4.
Promote the employment of socially and economically disadvantaged members of the community;
5.
Encourage employment of individuals struggling with reentry into the community after leaving a state correctional facility or incarceration, to reduce recidivism, through utilization of hiring halls maintained by the Trades Council or its member labor organizations;
6.
Ensure that registration on the hiring hall "out of work" lists of the Trade Council's member labor organizations shall be open to all, whether or not such individuals are members of the labor organization;
7.
Contain a standardized grievance and arbitration procedure to resolve alleged violations of the CWA; and
8.
Include a process for an oversight committee to monitor progress of the project and for resolution of project-wide issues and disputes. The oversight committee shall be composed of an equal number of representatives each from the contractor and the Trades Council, and of one representative of the municipality. The committee shall be empowered to address project-wide issues and disputes such as project policies and work rules, project safety, compliance with hiring requirements, apprenticeship utilization, job progress, and other significant issues as may affect the project. The committee shall track implementation of the CWA's apprentice, military, minority and other hiring preferences and report progress to the municipality.
G.
The assembly shall review this section and its efficacy every three years following its enactment.
(AO No. 2018-74, § 2, 9-25-2018; AO No. 2019-24, § 3, 4-1-2019)
All municipal contracts for supplies, services, professional services and construction, and any amendments thereto, shall be signed by the mayor or the mayor's designee, except that those contracts pursuant to section 4.06 of the Charter shall be signed by the chair of the assembly after the chair of the assembly confirms with the purchasing officer that the contract complies with this title.
(AO No. 79-203, 1-1-1980; AO No. 90-30(S-2); AO No. 2025-37, § 6, 5-16-2025)
A.
The using agency shall administer all contracts for supplies, services or professional services except as otherwise designated by the mayor.
B.
The director of the public works department, or the director's designee, shall administer all construction contracts, except as otherwise designated by the mayor.
(AO No. 79-203, 1-1-1980; AO No. 2025-37, § 7, 5-16-2025)
Contract amendments shall not be used to avoid procurement by the competitive procedures established under this title. Except for emergency or proprietary procurements authorized under sections 7.20.080 and 7.20.090, contracts for supplies, services, professional services and construction may be amended by the mayor or the municipal manager only for the following reasons and those contracts pursuant to section 4.06 of the Charter by the chair of the assembly may also be amended only for the following reasons:
A.
To change the quantity ordered or date of delivery under a contract for supplies, where necessary to meet unforeseen municipal requirements;
B.
To change the quantity of services or professional services to be rendered or to change the scope of a project under a contract for services or professional services, where necessary to meet unforeseen changes in municipal requirements;
C.
To change the scope of a project or the scope of services or professional services under a construction contract to meet unforeseen municipal requirements or to change the specifications under a construction contract because unforeseen conditions render the original specifications impracticable;
D.
To change the time for completing a project under a contract for services, professional services or constructions;
E.
To correct an error in contract specifications made by the municipality in good faith, or to resolve a good-faith dispute between the municipality and a contractor as to a party's rights and obligations under the contract; or
F.
To change administrative provisions of a contract without materially altering the contract terms governing the quantity or quality of supplies, services, professional services or construction furnished the municipality.
G.
Price adjustments for non-controllable supply-price changes; limit to 20%, less than next bidder.
2.
Authorized changes. Price adjustments resulting in contract increases may, at the purchasing officer's election, be approved only upon satisfactory evidence that all of the following conditions exist:
a.
Uncontrollable cost at manufacturer's level. The increase is a result of the increased cost at the manufacturer's level and not costs under the contractor's control, such as tariffs, natural disasters, and supply chain disruptions.
b.
No profit-margin increase. The increase will not produce a higher profit margin for the contractor than that on the original contract.
c.
Identifiable items. The increase affects only the item(s) that are clearly identified by the contractor.
3.
Form of evidence. Evidence sufficient to satisfy subsection G.2 may include a certified invoice from the manufacturer or other official written documentation. The contractor must be able to show the difference between the prior year's price and the current difference in the price being requested.
4.
Limits. Price adjustments authorized by this subsection are subject to the following limits:
a.
Limit to next bid. For contracts initiated through competitive sealed bidding, such price adjustments shall not be permissible if the increased price(s) increase the contract value greater than had been offered by other bidders during the solicitation process that resulted in such contract.
b.
270-day limit. Price adjustments shall not be permissible prior to 270 days after contract execution.
c.
20% cap. Price adjustments shall be limited to a maximum change in contract value not to exceed 20 percent.
d.
Limit on small adjustments. Price adjustments will not be considered for increases less than ten percent on any particular item.
5.
Decreases. If, during the term of a contract, the market price of goods or services significantly decreases, the parties may mutually agree to adjust the contract price to reflect such conditions, pursuant to the terms and conditions of the contract.
H.
Fee-schedule adjustments not affecting authorized amounts. For contracts that contain fee schedules, the purchasing officer may allow reasonable changes to fee schedules after at least one year beyond contract execution, upon request, if the purchasing officer determines that the requested adjustment is reasonable and customary, will not necessitate a change order or amendment, and is not uncompetitive. Such adjusted fee schedules shall be incorporated into the contract through an amendment.
(AO No. 79-203, 1-1-1980; AO No. 90-30(S-2); AO No. 2025-37, § 8, 5-16-2025)
A.
Limits on amendments and change orders. No contract amendment or change order that will cause the total value of the contract to exceed the limits specified below may be executed unless the assembly has approved a memorandum setting forth the essential terms of the amendment or change order request:
1.
For contracts with an original award value of $50,000.00 or less a contract amendment or change order, or cumulative contract amendments or change orders, that will cause the total contract amount, as amended, to exceed $50,000.00 or 125 percent of the original contract award, whichever is greater.
2.
For contracts with an original award value greater than $50,000.00 up to $250,000.00; a contract amendment or change order, or cumulative contract amendments or change orders, that will cause the total contract amount, as amended, to exceed 125 percent of the original contract award.
3.
For contracts with an original award value greater than $250,000.00 up to $2,500,000.00; a contract amendment or change order, or cumulative contract amendments or change orders, that will cause the total contract amount, as amended, to exceed 125 percent of the original contract award, or to increase the original contract by $250,000.00, whichever is less.
4.
For contracts with an original award value greater than $2,500,000.00; the department shall recommend, with concurrence of the purchasing officer, the maximum contract amendment or change order value that can be executed without assembly approval. This value shall be established and approved concurrently with the contract award under section 7.15.040. If a maximum contract amendment or change order value that can be executed without assembly approval is not recommended concurrently with the contract award, the maximum value shall be established at ten percent of the original award value.
B.
Options. For contracts that contain one or more optional contract periods, and where the municipality desires to exercise the option, a follow-on period may be executed in an amount consistent with the original contract terms, notwithstanding subsection A herein. The individual option period is considered a separate action and not an amendment or change order. However, a contract amendment or change order, or cumulative contract amendments or change orders, issued within the original or any optional contract period, shall be subject to subsection A herein. If the original contract period or any optional period is otherwise subject to section 7.15.040, such approval shall be received prior to contract execution.
C.
Amendments and change-order reporting. For construction contracts where the original contract value is greater than $500,000.00, the administering agency or department shall submit informational memoranda to the assembly that, at a minimum, lists the contractor name and project identity, the original contract amount, and all contract amendments or change orders processed against the contract. Informational memoranda shall be submitted no later than 60 days after issuing the final pay estimate.
D.
Prior compliance required. No contractor may provide supplies, services, professional services, or construction provided to the municipality before the applicable requirements of this section are first satisfied.
E.
Amendments beyond memorandum submitted to assembly. No contract amendments may be authorized without assembly approval that allow for supplies, services, professional services or construction not contemplated within the details of the memorandum previously approved by the assembly.
(AO No. 79-203, 1-1-1980; AO No. 88-163; AO No. 2001-122(S-1), § 3, 7-24-2001; AO No. 2015-39, § 2, 5-14-2015; AO No. 2023-23(S), § 2, 3-21-2023; AO No. 2025-37, § 9, 5-16-2025)
No contract amendment that will increase the contract price may be approved or executed unless the chief fiscal officer has certified, in accordance with section 6.30.050, that funds are available for the municipality's performance under the contract as amended.
(AO No. 79-203, 1-1-1980)
A.
The municipality may enter into contracts for a term exceeding one year provided that funds for the municipality's performance during the fiscal year in which the contract term commences are certified as being available in accordance with section 7.15.030.
B.
The municipality's payment and performance obligations for the succeeding fiscal years of a multi-year contract shall be subject to the availability of funds lawfully appropriated therefor, provided that the assembly, by ordinance, may authorize a contract requiring funds from future appropriations.
(AO No. 79-203, 1-1-1980; AO No. 90-39)