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2. The proposed use of the property is consistent with the city's use of the property and the public interest; and 3. The city reserves the right to terminate the contract without penalty, in the event that the city determines that the contract is no longer consistent with the city's present or planned use of the property or the public interest. (q) Used property. A solicitation agent, for procurements up to $20,000, and the purchasing agent, for procurements in excess of $20,000 may contract for the purchase of used property by negotiation if such property is suitable for the city's needs and can be purchased for a lower cost than substantially similarly new property. For this purpose the cost of used property shall be based upon the life-cycle cost of the property over the period for which the property will be used by the city. A record shall be made of the findings that support the purchase. (r) Utilities. Contracts for the purchase of steam, power, heat, water, telecommunications services, and other utilities, including in-kind telecommunications services pursuant to EC 3.415(6). (7) Contracts Required by Emergency Circumstances. (a) In ,qeneral. When the purchasing agent determines that immediate execution of a contract is necessary to prevent substantial damage or injury to persons or property, the city may execute the contract without competitive selection and award, but, where time permits, the solicitation agent shall attempt to use competitive price and quality evaluation before selecting an emergency contractor. (b) Reportin,q. The solicitation agent shall: 1. Document the nature of the emergency; the method used for selection of the particular contractor and the reason why the selection method was deemed in the best interest of the city and the public, and 2. Notify the city council of the declaration of emergency, if made, and the facts and circumstances surrounding the emergency execution of the contract, as soon as possible, in light of the emergency circumstances. (c) Emer,qency public improvement contracts. A public improvement contract may only be awarded under emergency circumstances if the purchasing agent has made a written declaration of emergency. Any public improvement contract awarded under emergency conditions must be awarded within 60 days following the declaration of an emergency unless the city council grants an extension of the emergency period. When the delay required to obtain a payment or performance bond would result in injury or substantial property damage, the purchasing agent may waive, wholly or in part, the requirement for a payment or performance bond. (8) Federal Purchasing Programs. Goods and services may be purchased without competitive procedures under a local government purchasing program administered by the United States General Services Ordinance- ]0 L:\CMO~005 Council Agendas\M050214\S0502144-attA.doc