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A. Unless otherwise provided by law, a contract for supplies or services may be entered into without Assembly approval for any period of time deemed to be in the best interests of the Borough provided the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and funds are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds thereafter.

B. Assembly approval shall be required for any multi-year contract for which funding beyond the first fiscal period at the time of contracting is dependent on any financial assumptions or conditions other than the availability and appropriation of funds by the Assembly.

C. A multi-year contract is authorized where:

1. Estimated requirements cover the period of the contract and are reasonably firm and continuing; and

2. Such a contract will serve the best interests of the Borough by encouraging effective competition or otherwise promoting economies in Borough procurement.

D. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be cancelled and the contractor shall be reimbursed for the reasonable value of any non-recurring costs incurred but not amortized in the price of the supplies or services delivered under the contract. The cost of cancellation may be paid from any appropriations available for such purposes.

E. The total contract value for multi-year service area contracts for services shall be considered to be the estimate of the cost of providing the service for one fiscal year. (Amended during 2016 republication; Ord. 2013-22 § 2, 2013; Ord. 2002-29 § 23, 2002; Ord. 2001-19 § 3, 2001; Ord. 97-025 § 2, 1997; Ord. 81-22 § 2, 1981. 2004 Code §§ 14.01.151(C), 16.30.170.)