(a) The City Council may authorize the Mayor or City Manager to enter into grant agreements with grantees which set forth the terms and conditions of the grant and its administration.

(b) The grant agreement with a grantee shall set forth all terms and conditions for administering the grant including but not limited to scope of work, payment and process schedule, State of Alaska Municipal Grant Agreement, and such security devices as are deemed reasonable by the City Manager.

(c) Grant funds are not to be disbursed until the City and grantee have entered into a grant agreement.