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(a) Specified period. No contract for supplies, services or construction, including all renewals, shall be made by the Town for a period longer than three (3) years, and all multi-year contracts must be signed by the Town Manager. All contracts extending beyond one (1) year in duration shall be contingent upon and subject to duly enacted appropriations of the Town.

(b) Determination prior to use. Prior to the utilization of a multi-year contract, it shall be determined:

(1) That estimated requirements cover the period of the contract and are reasonably firm and continuing;

(2) That such a contract will serve the best interests of the Town by encouraging effective competition or otherwise promoting economies in Town procurement;

(3) That the contract beyond the first fiscal year shall be expressly contingent upon the annual budgeting and appropriation of sufficient funds on an annual basis or by nonlapsing appropriations; and

(4) That the contract clearly states that, when funds are not appropriated or otherwise made available to support the continuation of the Town’s performance or obligations in a subsequent fiscal period, the contract shall be cancelled. (Prior code 17.03.150)