Agenda - Council Work Session - 01/06/2009

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CITY COUNCIL WORK SESSION Topic Report: Discussion of Policy for Request for Proposals (RFP) for Professional Services By: Heidi A. Nelson, Asst. City Administrator Background: Currently, the City of Ramsey does not have a policy that requires or provides guidelines for Request for Proposals (RFP) for professional service contracts. Professional services are exempt from MN state competitive bidding law; however, the city often solicits proposals for such services. Under MN state law, contracts for the sale, purchase, or rental of supplies, materials or equipment and contracts for the construction, alteration, repair or maintenance of real or personal property that exceed $100,000 in estimated value are subject to competitive bidding law. Local improvement projects that are paid for with special assessments must be bid competively at the $50,000 threshold. If the cost of the contract is estimated to exceed $25,000 but not exceed $100,000, competitive bidding is allowed but not required. If the cost of the contract is estimated to be $25,000 or less, the city can make the contract by obtaining quotes or it may buy or sell the item on the open market. The attached excerpts from a research memo from the League of Minnesota Cities details the MN state law competitive bidding requirements. Information about current professional service contracts with the City of Ramsey is attached for Council reference. Council may wish to consider a policy based upon a value threshold to determine when an RFP process would be required or not required as well as establishes a time frame for when routine professional contracts would be re -bid (eg. every 3 -5 years). Action Statement: Direct staff to prepare a draft policy for Council consideration with regard to RFP 's for Contracts for Professional Services. Reviewed by: City Administrator: CCWS: 01/06/2009