CHAPTER IX. CONTRACTS AND FRANCHISES

A. CONTRACTS

Section 1.  When specifications and bids required.
No contract shall be entered into by the village for the making of any public improvement or for the purchase of any materials, tools, apparatus or any other thing or things, the consideration or cost of which shall exceed Ten Thousand Dollars ($10,000), until specifications shall be prepared therefor, and published advertisement made for sealed bids thereon; Provided, however, that in the event of emergency, the Village Superintendent, with the written consent of the President, may enter into such contracts costing in excess of Ten Thousand Dollars ($10,000), without necessity of specifications or sealed bids. The village shall have the right to reject any or all sealed bids received pursuant to this section.
(Amended by referendum of 11-8-1988)

Section 2.  Public work.
Subject to the provisions of this charter, the village may through its departments, officers and employees perform public work of all kinds or it may let any of such work by contract; Provided, however, that public work provided by officers or employees of the village acting outside of their regular duties and who will receive compensation additional to that which they receive in performance of their regular duties shall be contracted for in accordance with Section 1 of Part A of this Chapter.
(Amended by referendum of 11-8-1988)

Section 3.  Plans and drawings submitted.
No public improvement costing more than Ten Thousand Dollars ($10,000) shall be contracted for or commenced until drawings, profiles and estimates for the same shall have been submitted to the council, and approved by it; Provided, however, that drawings, profiles and estimates for public improvements costing $10,000 or less shall be provided upon the request of the Village Superintendent. Such drawings, profiles and estimates, or copies thereof, shall thereafter remain on file in the office of the Village Clerk for public inspection.
(Amended by referendum of 11-8-1988)

Section 4.  No member of the council to be interested.
No member of the council shall vote for the authorization of any such contract with or for the village if he shall be financially interested in such contract or the proceeds thereof.
State law references: Conflicts of interest as to contracts, MCL 15.321 et seq.; standards of conduct and ethics, MCL 15.341 et seq.

B. FRANCHISES

Section 1.  Time limitation.
No franchise shall be granted by the village for a longer period than 30 years.
State law references: Franchises limited to thirty (30) years, Mich. Const., 1963, art. VII, § 30.

Section 2.  When vote required.
No franchise which is not revocable at the will of the village, shall be granted or become operative until the same shall have been referred to the people at a general or special election and has received the approval of three-fifths of the electors voting thereon at such election.
State law references: Submittal of franchise to electors required if irrevocable, Mich. Const., 1963, art. VII, § 25.

Section 3.  No exclusive franchises.
No person, firm or corporation shall ever be granted any exclusive franchise.

Section 4.  Reservations.
The grant of every franchise shall be subject to the right of the village, whether in terms reserved or not, to make all regulations which shall be necessary to secure in the most ample manner the safety, welfare and accommodation of the public, including among other things, the right to pass and enforce ordinances to require proper and adequate extensions of the service of such grant, and to protect the public from danger or inconvenience in the operation of any work or business authorized by the grant of the franchise, and the right to make and enforce all such regulations as shall be reasonably necessary to secure adequate, sufficient and proper service, extensions and accommodations for the people and insure their comfort and convenience.

Section 5.  Permits revocable.
The council may grant a permit at any time, in or upon any street, alley, or public place, provided such permit shall be revocable by the council at its pleasure at any time, whether such right to revoke be expressly reserved in said permit or not.

Section 6.  To be made by ordinance.
All contracts, granting or giving any original franchise, or extending or renewing or amending any existing franchise, shall be made by ordinance and not otherwise. Every such ordinance granting a franchise shall be accepted in writing by the grantee before said ordinance takes effect, and if it is to be submitted to the electors, it shall be so accepted before its submission. Such acceptance shall be filed with the clerk. Any failure to accept in accordance with this section within ten days after the passage of the ordinance shall automatically annul such permit or franchise.

Section 7.  Assignment of franchise.
No franchise, granted by the village, shall ever be leased, assigned or otherwise alienated except in accordance with the express provisions of such franchise, and franchises granted by the village may provide how, and in what manner, and under what conditions such franchise may be leased, assigned, or alienated, and no dealing with the lessee or assignee on the part of the village which shall recognize the performance of any act or payment of any compensation by the lessee or assignee, shall be deemed to have operated as a consent to such lease, assignment or alienation.

Section 8.  Modification of franchise.
No change or modification of any franchise or grant of rights or powers previously granted to any corporation, firm, person, or association of persons shall be made, except in the manner and subject to all conditions herein provided for, in making of original grants and franchises.

Section 9.  Use by others.
The village, by and through its council shall have the power to require any corporation holding a franchise from the village, to allow the use of its poles and wires by any other corporation to which the village shall grant a franchise, subject to reasonable regulations and upon the payment of a reasonable rental therefor.

Section 10.  Where election required.
The village shall not have power to submit a franchise to the electors at a special election unless the expense of holding the election, as determined by the council, shall be paid in advance by the grantee in said franchise to the village treasurer.


©The Village of Grosse Pointe Shores, 2004