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-172 <br />From: Harold LeVander [hlevander @felhaber.com] <br />Sent: Wednesday, September 27, 2006 3 :16 PM <br />To: Leo Offerman <br />Subject: Municipal Government Bid Requirements <br />Attachments: Section 471.pdf; Metropolitan Sports Case.pdf <br />Leo, <br />The following is in response to your September 25 e -mail and our phone <br />conversation this morning. Attached are several subdivisions of Minna Stat. § 471.35 <br />regarding uniform municipal contracting laws. For purposes of competitive bidding, <br />Subdivision 2 states that a contract means an agreement entered into by a municipality for <br />the sale or purchase of supplies, materials, equipment or the rental thereof, or the <br />construction, alteration, repair or maintenance of real or personal property. The further <br />subdivisions exempt municipalities of certain sizes and dollar amounts from competitive <br />bidding requirements. <br />It is my understanding that Connexus Energy will install and own the street lighting <br />facilities and that the City will pay for the installation costs and the monthly energy bills. <br />That transaction does not involve the purchase of supplies, materials, equipment or the <br />rental value thereof, nor does the arrangement involve the construction, alteration, repair, <br />or maintenance of real estate, since Connexus Energy will own these facilities. Under <br />these circumstances, competitive bidding is not required. Furthermore, if the street <br />lighting project is in a city located within the exclusive service territory of Connexus <br />Energy, no other utility could bid the job in any event. <br />I am also attaching the Metropolitan Sports Facilities Commission decision in <br />1986 where the Commission supplied a scoreboard to the Metrodome, and in return, the <br />Commission received a share of the advertising fees from the scoreboard. As the case <br />indicates, this arrangement was not a contract for materials, supplies, or equipment, and <br />the Commission was not obligated to follow public bidding procedures. That case has <br />parallel impact here. <br />Hopefully, this will answer your question, and please contact me if there is <br />anything further. <br />Hap LeVander <br />Harold LeVander, Jr. <br />Felhaber, Larson, Fenlon & Vogt, P.A. <br />2100 UBS Plaza <br />444 Cedar Street <br />St. Paul, MN 55101 -2136 <br />