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A.G. Op. 1007 (Mar. <br />22, 1971). <br />Hubbard Broad., Inc. <br />v. Metro. Sports <br />Comm'n, 381 N.W.2d <br />842 (Minn. 1986); <br />Schwandt Sanitation of <br />Paynesville v. City of <br />Paynesville, 423 <br />N.W.2d 59 (Minn. Ct. <br />App. 1988); A.G. Op. <br />707 -A (Feb. 8, 1990). <br />Minn. Stat. §§ 471.345, <br />subd. 4; 429.041, subd. <br />1. <br />Minn. Stat. § 471.345, <br />subd. 5. <br />Minn. Stat. § 471.345, <br />subd. 16. <br />The attorney general ha . dvised that the competitive- bidding requirements <br />apply to the total amount o 'oint contract, not to an individual participant's <br />share. Thus, if the total amoun , the contract is more than the competitive - <br />bidding threshold, and it is the typ- • f contract that is subject to the <br />competitive- bidding law, sealed bids m _ t be sought even if the city's share of <br />the contract is less than the competitive -b • ng threshold. <br />C. Exceptions to competitive bidding <br />The following are some of the most common exceptions to the competitive - <br />bidding requirements: <br />• Non - contracts. An agreement that does not meet the definition of a <br />contract under the competitive- bidding law is exempt from the <br />competitive- bidding requirements. For example, an agreement in which a <br />company supplied a special scoreboard system in exchange for the right to <br />sell or lease advertising space on it was found to be exempt from the <br />competitive- bidding requirements because it was not a contract for <br />"materials, supplies or equipment." Likewise, contracts for refuse hauling <br />and janitorial services were also found to be exempt from the competitive - <br />bidding requirements because they were not considered to be contracts <br />within the definition of the competitive- bidding law. <br />• Contracts below the competitive - bidding threshold, but above $25,000. <br />Contracts that are estimated to cost more than $25,000, but not more than <br />$100,000, may be made in two different ways. The city may make the <br />contract using the competitive- bidding process or by direct negotiation. If <br />direct negotiation is used, the council must seek at least two quotations <br />and keep them on file for at least one year after receipt. For .local <br />improvement contracts that are paid for with special assessments, the <br />competitive- bidding process must be used if the estimated cost of the <br />contract exceeds $50,000. <br />• Contracts of $25,000 or less. If a contract is estimated to be $25,000 or <br />less, the city has the choice of making the contract upon quotation or in <br />the open market. If the city makes the contract upon quotation, the city <br />must obtain at least two quotations and keep them on file for at least one <br />year after their receipt. For local improvement contracts that are paid for <br />with special assessments, the competitive- bidding process must be used if <br />the estimated cost of the contract exceeds $50,000. <br />• Electronic reverse - auction purchases. Cities may use an electronic <br />reverse- auction procedure to contract for the purchase of supplies, <br />materials, and equipment regardless of their cost. This procedure allows <br />vendors to compete to provide the requested supplies, materials or <br />equipment at the lowest selling price in an open and interactive electronic <br />environment. <br />COMPETITIVE BIDDING REQUIREMENTS IN CITIES 5 <br />