Council tables Placer AI purchase, asks city attorney to draft contract

The Board of Aldermen voted to table approval of a $16,000 purchase order for Placer AI and directed the city attorney to draft a contract for the service before the board considers final authorization. Why it matters: Aldermen expressed legal, fiscal and operational concerns about automatic renewals, limited vendor warranties, support hours and the vendor’s right to use the city’s name or logo in marketing. The board sought a negotiated, written contract rather than signing the vendor’s online license as-is. Concerns raised: Alderman Cleave reviewed the vendor’s standard agreements and flagged several issues: an auto-renewal clause requiring 20 days’ notice to cancel; a “funding failure” termination right; support hours listed as 11 a.m.–7 p.m. Central and only email support; an online license the city would need to annex to the city contract to prevent unilateral changes; and a vendor disclaimer that the company “does not warrant that access ... will be uninterrupted or error free.” Direction from the board: Members asked the city attorney to draft a city-approved contract that preserves the city’s rights and clarifies warranties, service-level expectations, renewal and cancellation mechanics, permitted use of the city’s name or logo, and who signs. Alderman Cleave moved to table; the motion to table and to direct the attorney to return with a draft contract passed on an aye vote. Budget and procurement: Staff said the $16,000 was in the building department budget and had been discussed as possibly shared with tourism, but aldermen asked staff to verify budget lines before returning with a contract. What to watch: The city attorney will return with a draft contract for aldermanic review before any purchase order or execution of services.