§ 14.3. Limitations on contractual power.

(a)

The city shall not purchase, sell, or lease any real estate or any interest therein except by resolution concurred in by at least five members of the council.

(b)

The city shall not enter into a contract which will not be fully executed within a period of ten years, without the approval of a majority of the electors voting thereon at a regular or special election, unless such contract is with a public utility or one or more governmental units.

(c)

The city shall not have power to sell, lease, or dispose of any real estate owned by it, without the approving vote of a majority of the electors of the city voting on the proposition to sell, lease, or dispose of such real estate at a regular or special election, unless:

(1)

The council resolution to sell such real estate shall be completed in the manner in which it is finally passed and has remained on file with the clerk for public inspection for thirty days before the final adoption or passage thereof, and

(2)

Such resolution is approved by the affirmative roll call vote of five or more members of the council.

(d)

Except as provided by ordinance authorized by section 14.2 of this chapter, each contract for public improvements or personal property shall be let after opportunity for competitive bidding. All bids shall be opened in public in the council room by a committee comprised of secretary of the council, the clerk, and the controller, at the time designated in the notice of letting and shall be reported by the committee to the council at its next meeting. The council may reject any or all bids if deemed advisable. If all bids are rejected, or if no bids are received, the council may obtain new bids or authorize the division of purchasing to negotiate in the open market for a contract.

(e)

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

(f)

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).