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Contract

LV
Larry Vickers
Thu, Mar 5, 2020 3:25 PM

Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045

http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.
RT
Robert Thompson
Thu, Mar 5, 2020 3:32 PM

It is not enforceable beyond the fiscal year in which is was executed,  unless the Municipality budgeted for the entire term the year of execution.

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City,  Okla.  73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

CONFIDENTIALITY NOTE:
This e-mail and any attachments may contain confidential information that is protected by legal privilege.  If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this e-mail or any attachment is prohibited.  If you have received this e-mail in error, please notify us immediately by returning it to the sender and delete this copy from your system.  Thank you for your cooperation.
Visit us at our website http://www.cheekfalcone.com/

From: Oama oama-bounces@lists.imla.org On Behalf Of Larry Vickers
Sent: Thursday, March 05, 2020 9:26 AM
To: oama@lists.imla.org
Subject: [Oama] Contract

Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045
http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

It is not enforceable beyond the fiscal year in which is was executed, unless the Municipality budgeted for the entire term the year of execution. Robert C. Thompson Cheek & Falcone, PLLC 6301 Waterford Blvd., Suite 320 Oklahoma City, Okla. 73118 direct telephone:405-286-9560 direct fax: 405-286-9680 Firm telephone: 405-286-9191 rthompson@cheekfalcone.com<mailto:rthompson@cheekfalcone.com> CONFIDENTIALITY NOTE: This e-mail and any attachments may contain confidential information that is protected by legal privilege. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this e-mail or any attachment is prohibited. If you have received this e-mail in error, please notify us immediately by returning it to the sender and delete this copy from your system. Thank you for your cooperation. Visit us at our website http://www.cheekfalcone.com/ From: Oama <oama-bounces@lists.imla.org> On Behalf Of Larry Vickers Sent: Thursday, March 05, 2020 9:26 AM To: oama@lists.imla.org Subject: [Oama] Contract Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.
JM
Jon Miller
Thu, Mar 5, 2020 6:21 PM

City can enter into multi year contract if it encumbers in the current fiscal year all of the funds for the entire period under the contract.  Otherwise the contract is dependent upon budgeting for subsequent fiscal years.

Jon Miller
Sent from iPhone

On Mar 5, 2020, at 9:26 AM, Larry Vickers larry@lvickerslaw.com wrote:



Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045

http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

--
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City can enter into multi year contract if it encumbers in the current fiscal year all of the funds for the entire period under the contract. Otherwise the contract is dependent upon budgeting for subsequent fiscal years. Jon Miller Sent from iPhone On Mar 5, 2020, at 9:26 AM, Larry Vickers <larry@lvickerslaw.com> wrote:  Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. -- Oama mailing list Oama@lists.imla.org http://lists.imla.org/mailman/listinfo/oama_lists.imla.org
CK
Corry Kendall
Thu, Mar 5, 2020 6:45 PM

I was successful in getting out of a sanitation contract on this very grounds. I will try to find my brief I did on the matter. We settled out of court.

Sent from my iPhone

On Mar 5, 2020, at 12:22 PM, Jon Miller jonmiller@jem-pc.com wrote:

 City can enter into multi year contract if it encumbers in the current fiscal year all of the funds for the entire period under the contract.  Otherwise the contract is dependent upon budgeting for subsequent fiscal years.

Jon Miller
Sent from iPhone

On Mar 5, 2020, at 9:26 AM, Larry Vickers larry@lvickerslaw.com wrote:


Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045

http://www.lvickerslaw.com

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

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I was successful in getting out of a sanitation contract on this very grounds. I will try to find my brief I did on the matter. We settled out of court. Sent from my iPhone >> On Mar 5, 2020, at 12:22 PM, Jon Miller <jonmiller@jem-pc.com> wrote: >  City can enter into multi year contract if it encumbers in the current fiscal year all of the funds for the entire period under the contract. Otherwise the contract is dependent upon budgeting for subsequent fiscal years. > > Jon Miller > Sent from iPhone > >>> On Mar 5, 2020, at 9:26 AM, Larry Vickers <larry@lvickerslaw.com> wrote: >>  >> Group: >> >> >> >> Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? >> >> >> >> Larry Vickers, Jr. >> Attorney At Law, P.L.L.C >> Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. >> >> 600 Emporia Street, Suite B >> Muskogee, Oklahoma 74401 >> Phone: 918-682-5900 >> Fax: 918-682-5905 >> >> >> >> 303 South Thornton >> >> Vian, Oklahoma 74962 >> Phone: 918-773-4004 >> Fax: 918-773-4045 >> >> http://www.lvickerslaw.com >> >> >> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. >> >> -- >> Oama mailing list >> Oama@lists.imla.org >> http://lists.imla.org/mailman/listinfo/oama_lists.imla.org > -- > Oama mailing list > Oama@lists.imla.org > http://lists.imla.org/mailman/listinfo/oama_lists.imla.org
LV
Larry Vickers
Thu, Mar 5, 2020 6:46 PM

that would be great! Thanks so much.

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045

http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.


From: Corry Kendall corry.kendall@swoklaw.com
Sent: Thursday, March 5, 2020 12:45:28 PM
To: Jon Miller
Cc: Larry Vickers; oama@lists.imla.org
Subject: Re: [Oama] Contract

I was successful in getting out of a sanitation contract on this very grounds. I will try to find my brief I did on the matter. We settled out of court.

Sent from my iPhone

On Mar 5, 2020, at 12:22 PM, Jon Miller jonmiller@jem-pc.com wrote:

 City can enter into multi year contract if it encumbers in the current fiscal year all of the funds for the entire period under the contract.  Otherwise the contract is dependent upon budgeting for subsequent fiscal years.

Jon Miller
Sent from iPhone

On Mar 5, 2020, at 9:26 AM, Larry Vickers larry@lvickerslaw.com wrote:



Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045

http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

--
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Oama mailing list
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http://lists.imla.org/mailman/listinfo/oama_lists.imla.org

that would be great! Thanks so much. Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. ________________________________ From: Corry Kendall <corry.kendall@swoklaw.com> Sent: Thursday, March 5, 2020 12:45:28 PM To: Jon Miller Cc: Larry Vickers; oama@lists.imla.org Subject: Re: [Oama] Contract I was successful in getting out of a sanitation contract on this very grounds. I will try to find my brief I did on the matter. We settled out of court. Sent from my iPhone On Mar 5, 2020, at 12:22 PM, Jon Miller <jonmiller@jem-pc.com> wrote:  City can enter into multi year contract if it encumbers in the current fiscal year all of the funds for the entire period under the contract. Otherwise the contract is dependent upon budgeting for subsequent fiscal years. Jon Miller Sent from iPhone On Mar 5, 2020, at 9:26 AM, Larry Vickers <larry@lvickerslaw.com> wrote:  Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. -- Oama mailing list Oama@lists.imla.org http://lists.imla.org/mailman/listinfo/oama_lists.imla.org -- Oama mailing list Oama@lists.imla.org http://lists.imla.org/mailman/listinfo/oama_lists.imla.org
CC
Claudia Conner
Thu, Mar 5, 2020 6:52 PM

For the future, a contract could be created that was year-to-year, with a multi-year term.  That is, the contract either automatically renewed at the end of the year for a number of years unless parties affirmatively notify that the contract was terminated.  The contract also contained language that it could be terminated due to budgetary issues.

From: Oama oama-bounces@lists.imla.org On Behalf Of Larry Vickers
Sent: Thursday, March 5, 2020 9:26 AM
To: oama@lists.imla.org
Subject: External Source[Oama] Contract

Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045
http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

For the future, a contract could be created that was year-to-year, with a multi-year term. That is, the contract either automatically renewed at the end of the year for a number of years unless parties affirmatively notify that the contract was terminated. The contract also contained language that it could be terminated due to budgetary issues. From: Oama <oama-bounces@lists.imla.org> On Behalf Of Larry Vickers Sent: Thursday, March 5, 2020 9:26 AM To: oama@lists.imla.org Subject: *External Source*[Oama] Contract Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.
JB
Jeff Bryant
Thu, Mar 5, 2020 9:06 PM

Generally, municipalities in Oklahoma may not deficit spend or create debt without a vote of the people.  Cities may only appropriate 90% of anticipated revenues in a fiscal year plus any carryover fund balance in the General Fund.  A current Council or governing body may not bind a future Council or future governing body.  So, contracts can only run in a particular fiscal year unless the whole contract amount is appropriated and encumbered by the governing body during the fiscal year.  Contracts that run beyond those time periods should have a "funding out" clause that makes the contract subject to appropriation of funding by the Council or governing body in future fiscal years.  For longer term contracts that require significant private investment on the front end to be recouped over a period of years, often automatic annual renewal clauses are used with a termination clause that requires affirmative action by a party to the contract to activate.

For your Sanitation service provider, it is recommended that you check the existing contract for these types of clauses.  If a change is imminent, then the termination process should be activated and Council or the governing body has the latitude under the law to not appropriate funding for this particular contract for the upcoming fiscal year.  A link to some additional information on Oklahoma Constitutional debt limitations is as follows from the OML website:  https://static1.squarespace.com/static/59bba641cd39c38913f702a0/t/5c3cb36a03ce64866cfa5458/1547481963692/October+2010+OC%26T2.pdf

Jeff Bryant

Jeff H Bryant
Director of Legal Services
Associate General Counsel
jbryant@omag.orgmailto:jbryant@omag.org

[OMAG Small Logo Smooth]
3650 S. Boulevard
Edmond, Oklahoma  73013
Phone: 405-657-1419
Fax: 405-657-1401
www.omag.orghttps://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0

From: Oama oama-bounces@lists.imla.org On Behalf Of Robert Thompson
Sent: Thursday, March 5, 2020 9:32 AM
To: Larry Vickers larry@lvickerslaw.com; oama@lists.imla.org
Subject: Re: [Oama] Contract

It is not enforceable beyond the fiscal year in which is was executed,  unless the Municipality budgeted for the entire term the year of execution.

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City,  Okla.  73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

CONFIDENTIALITY NOTE:
This e-mail and any attachments may contain confidential information that is protected by legal privilege.  If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this e-mail or any attachment is prohibited.  If you have received this e-mail in error, please notify us immediately by returning it to the sender and delete this copy from your system.  Thank you for your cooperation.
Visit us at our website http://www.cheekfalcone.com/https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cheekfalcone.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868035070&sdata=KM3yrbNCPXQccfs9zjcP8pmOk7Zq0P1OEVWaPR7BeOo%3D&reserved=0

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Larry Vickers
Sent: Thursday, March 05, 2020 9:26 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Contract

Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045
http://www.lvickerslaw.comhttps://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.lvickerslaw.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868045072&sdata=TPaAPq%2BDREsp4cB3uL3fA0%2BWB%2B0TBs4N95z3egkwksA%3D&reserved=0

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

Generally, municipalities in Oklahoma may not deficit spend or create debt without a vote of the people. Cities may only appropriate 90% of anticipated revenues in a fiscal year plus any carryover fund balance in the General Fund. A current Council or governing body may not bind a future Council or future governing body. So, contracts can only run in a particular fiscal year unless the whole contract amount is appropriated and encumbered by the governing body during the fiscal year. Contracts that run beyond those time periods should have a "funding out" clause that makes the contract subject to appropriation of funding by the Council or governing body in future fiscal years. For longer term contracts that require significant private investment on the front end to be recouped over a period of years, often automatic annual renewal clauses are used with a termination clause that requires affirmative action by a party to the contract to activate. For your Sanitation service provider, it is recommended that you check the existing contract for these types of clauses. If a change is imminent, then the termination process should be activated and Council or the governing body has the latitude under the law to not appropriate funding for this particular contract for the upcoming fiscal year. A link to some additional information on Oklahoma Constitutional debt limitations is as follows from the OML website: https://static1.squarespace.com/static/59bba641cd39c38913f702a0/t/5c3cb36a03ce64866cfa5458/1547481963692/October+2010+OC%26T2.pdf Jeff Bryant Jeff H Bryant Director of Legal Services Associate General Counsel jbryant@omag.org<mailto:jbryant@omag.org> [OMAG Small Logo Smooth] 3650 S. Boulevard Edmond, Oklahoma 73013 Phone: 405-657-1419 Fax: 405-657-1401 www.omag.org<https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0> From: Oama <oama-bounces@lists.imla.org> On Behalf Of Robert Thompson Sent: Thursday, March 5, 2020 9:32 AM To: Larry Vickers <larry@lvickerslaw.com>; oama@lists.imla.org Subject: Re: [Oama] Contract It is not enforceable beyond the fiscal year in which is was executed, unless the Municipality budgeted for the entire term the year of execution. Robert C. Thompson Cheek & Falcone, PLLC 6301 Waterford Blvd., Suite 320 Oklahoma City, Okla. 73118 direct telephone:405-286-9560 direct fax: 405-286-9680 Firm telephone: 405-286-9191 rthompson@cheekfalcone.com<mailto:rthompson@cheekfalcone.com> CONFIDENTIALITY NOTE: This e-mail and any attachments may contain confidential information that is protected by legal privilege. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this e-mail or any attachment is prohibited. If you have received this e-mail in error, please notify us immediately by returning it to the sender and delete this copy from your system. Thank you for your cooperation. Visit us at our website http://www.cheekfalcone.com/<https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cheekfalcone.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868035070&sdata=KM3yrbNCPXQccfs9zjcP8pmOk7Zq0P1OEVWaPR7BeOo%3D&reserved=0> From: Oama <oama-bounces@lists.imla.org<mailto:oama-bounces@lists.imla.org>> On Behalf Of Larry Vickers Sent: Thursday, March 05, 2020 9:26 AM To: oama@lists.imla.org<mailto:oama@lists.imla.org> Subject: [Oama] Contract Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.lvickerslaw.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868045072&sdata=TPaAPq%2BDREsp4cB3uL3fA0%2BWB%2B0TBs4N95z3egkwksA%3D&reserved=0> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.
LV
Larry Vickers
Thu, Mar 5, 2020 10:38 PM

Thanks for all the input. Greatly appreciated.

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045

http://www.lvickerslaw.comhttp://www.lvickerslaw.com/

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.


From: Jeff Bryant jbryant@omag.org
Sent: Thursday, March 5, 2020 3:06:59 PM
To: Robert Thompson; Larry Vickers; oama@lists.imla.org
Subject: RE: Contract

Generally, municipalities in Oklahoma may not deficit spend or create debt without a vote of the people.  Cities may only appropriate 90% of anticipated revenues in a fiscal year plus any carryover fund balance in the General Fund.  A current Council or governing body may not bind a future Council or future governing body.  So, contracts can only run in a particular fiscal year unless the whole contract amount is appropriated and encumbered by the governing body during the fiscal year.  Contracts that run beyond those time periods should have a “funding out” clause that makes the contract subject to appropriation of funding by the Council or governing body in future fiscal years.  For longer term contracts that require significant private investment on the front end to be recouped over a period of years, often automatic annual renewal clauses are used with a termination clause that requires affirmative action by a party to the contract to activate.

For your Sanitation service provider, it is recommended that you check the existing contract for these types of clauses.  If a change is imminent, then the termination process should be activated and Council or the governing body has the latitude under the law to not appropriate funding for this particular contract for the upcoming fiscal year.  A link to some additional information on Oklahoma Constitutional debt limitations is as follows from the OML website:  https://static1.squarespace.com/static/59bba641cd39c38913f702a0/t/5c3cb36a03ce64866cfa5458/1547481963692/October+2010+OC%26T2.pdf

Jeff Bryant

Jeff H Bryant
Director of Legal Services
Associate General Counsel
jbryant@omag.orgmailto:jbryant@omag.org

[OMAG Small Logo Smooth]
3650 S. Boulevard
Edmond, Oklahoma  73013
Phone: 405-657-1419
Fax: 405-657-1401
www.omag.orghttps://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0

From: Oama oama-bounces@lists.imla.org On Behalf Of Robert Thompson
Sent: Thursday, March 5, 2020 9:32 AM
To: Larry Vickers larry@lvickerslaw.com; oama@lists.imla.org
Subject: Re: [Oama] Contract

It is not enforceable beyond the fiscal year in which is was executed,  unless the Municipality budgeted for the entire term the year of execution.

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City,  Okla.  73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

CONFIDENTIALITY NOTE:
This e-mail and any attachments may contain confidential information that is protected by legal privilege.  If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this e-mail or any attachment is prohibited.  If you have received this e-mail in error, please notify us immediately by returning it to the sender and delete this copy from your system.  Thank you for your cooperation.
Visit us at our website http://www.cheekfalcone.com/https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cheekfalcone.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868035070&sdata=KM3yrbNCPXQccfs9zjcP8pmOk7Zq0P1OEVWaPR7BeOo%3D&reserved=0

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Larry Vickers
Sent: Thursday, March 05, 2020 9:26 AM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Contract

Group:

Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void?

Larry Vickers, Jr.
Attorney At Law, P.L.L.C
Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law.

600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
Fax: 918-682-5905

303 South Thornton

Vian, Oklahoma 74962
Phone: 918-773-4004
Fax: 918-773-4045
http://www.lvickerslaw.comhttps://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.lvickerslaw.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868045072&sdata=TPaAPq%2BDREsp4cB3uL3fA0%2BWB%2B0TBs4N95z3egkwksA%3D&reserved=0

E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.

Thanks for all the input. Greatly appreciated. Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<http://www.lvickerslaw.com/> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. ________________________________ From: Jeff Bryant <jbryant@omag.org> Sent: Thursday, March 5, 2020 3:06:59 PM To: Robert Thompson; Larry Vickers; oama@lists.imla.org Subject: RE: Contract Generally, municipalities in Oklahoma may not deficit spend or create debt without a vote of the people. Cities may only appropriate 90% of anticipated revenues in a fiscal year plus any carryover fund balance in the General Fund. A current Council or governing body may not bind a future Council or future governing body. So, contracts can only run in a particular fiscal year unless the whole contract amount is appropriated and encumbered by the governing body during the fiscal year. Contracts that run beyond those time periods should have a “funding out” clause that makes the contract subject to appropriation of funding by the Council or governing body in future fiscal years. For longer term contracts that require significant private investment on the front end to be recouped over a period of years, often automatic annual renewal clauses are used with a termination clause that requires affirmative action by a party to the contract to activate. For your Sanitation service provider, it is recommended that you check the existing contract for these types of clauses. If a change is imminent, then the termination process should be activated and Council or the governing body has the latitude under the law to not appropriate funding for this particular contract for the upcoming fiscal year. A link to some additional information on Oklahoma Constitutional debt limitations is as follows from the OML website: https://static1.squarespace.com/static/59bba641cd39c38913f702a0/t/5c3cb36a03ce64866cfa5458/1547481963692/October+2010+OC%26T2.pdf Jeff Bryant Jeff H Bryant Director of Legal Services Associate General Counsel jbryant@omag.org<mailto:jbryant@omag.org> [OMAG Small Logo Smooth] 3650 S. Boulevard Edmond, Oklahoma 73013 Phone: 405-657-1419 Fax: 405-657-1401 www.omag.org<https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0> From: Oama <oama-bounces@lists.imla.org> On Behalf Of Robert Thompson Sent: Thursday, March 5, 2020 9:32 AM To: Larry Vickers <larry@lvickerslaw.com>; oama@lists.imla.org Subject: Re: [Oama] Contract It is not enforceable beyond the fiscal year in which is was executed, unless the Municipality budgeted for the entire term the year of execution. Robert C. Thompson Cheek & Falcone, PLLC 6301 Waterford Blvd., Suite 320 Oklahoma City, Okla. 73118 direct telephone:405-286-9560 direct fax: 405-286-9680 Firm telephone: 405-286-9191 rthompson@cheekfalcone.com<mailto:rthompson@cheekfalcone.com> CONFIDENTIALITY NOTE: This e-mail and any attachments may contain confidential information that is protected by legal privilege. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this e-mail or any attachment is prohibited. If you have received this e-mail in error, please notify us immediately by returning it to the sender and delete this copy from your system. Thank you for your cooperation. Visit us at our website http://www.cheekfalcone.com/<https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.cheekfalcone.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868035070&sdata=KM3yrbNCPXQccfs9zjcP8pmOk7Zq0P1OEVWaPR7BeOo%3D&reserved=0> From: Oama <oama-bounces@lists.imla.org<mailto:oama-bounces@lists.imla.org>> On Behalf Of Larry Vickers Sent: Thursday, March 05, 2020 9:26 AM To: oama@lists.imla.org<mailto:oama@lists.imla.org> Subject: [Oama] Contract Group: Have a municipality that signed a multi-year contract with a sanitation company and now wants to find a new company. My question is, can the municipality even legally enter a multi-year contract, and if not does it make it automatically void? Larry Vickers, Jr. Attorney At Law, P.L.L.C Specializing in Criminal Defense,Family Law, Juvenile/Deprived Law. 600 Emporia Street, Suite B Muskogee, Oklahoma 74401 Phone: 918-682-5900 Fax: 918-682-5905 303 South Thornton Vian, Oklahoma 74962 Phone: 918-773-4004 Fax: 918-773-4045 http://www.lvickerslaw.com<https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.lvickerslaw.com%2F&data=02%7C01%7Cjbryant%40omag.org%7C42467796eedd4e2e52d208d7c11a7e7b%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C637190191868045072&sdata=TPaAPq%2BDREsp4cB3uL3fA0%2BWB%2B0TBs4N95z3egkwksA%3D&reserved=0> E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.