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I <br />I <br />I <br />I <br />t <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />should be estimated by multiplying the per unit price by the total number of units <br />obtained. Joint contracts should be estimated by adding together the total cost for all <br />the governmental subdivisions that are parties to the contract. Lease contracts should <br />be estimated by adding together all the lease payments for the term of the lease. <br /> <br />Three Categories of Procedural Requirements. There are three categories of <br />procedural requirements for contracts under the Municipal Contracting Law. The <br />categories depend on the value of the contract and the population of the contracting <br />city. (Minn. Stat. § 471.345) <br /> <br />Less than $10,000 regardless of population. These contracts can be made by <br />direct negotiation in the open market, or by obtaining at least two quotations <br />which must be kept for at least one year. <br /> <br />From $10,000 to $35,000 if the population is less than 2,500, or from <br />$10,000 to $50,000 if the population is 2,500 or more. These contracts can <br />be made by direct negotiation, but only after obtaining at least two quotations. <br />which must be kept for at le.~ast.one year. <br /> <br />Exceeding $35,000 if the population is less than 2,500 or exceeding <br />$50,000 if the population is 2,500 or more. These contracts only can be <br />made after following the competitive bidding procedure, which is discussed in <br />more detail below. <br /> <br />Competitive Bidding Procedure. Generally, the competitive bidding procedure <br />involves the publication of an advertisement to solicit sealed bids and the award of <br />the contract to the lowest responsible bidder. (Minn. Stat. § 412.311) This procedure <br />includes the following steps: <br /> <br />Preparation of bid specification, s. The specifications must be sufficiently <br />definite to give prospers a reasonable basis on which to bid. <br />However, the specifications may not be drawn in such a way as to exclude ali <br />but one type or kind of equipment. <br /> <br />Notice and publication. The published notice should contain the following <br />information: <br /> <br />· a description of the item or service being sought, <br />· information on how to obtain the bid specifications, <br />· information on where, when, and to whom to submit bids, <br />· deadline for submitting bids, <br />· time and place where bids will be opened, <br />- notice of city officials that will be present at bid opening, <br />· notice of city's right to waive aay minor defects, <br /> <br />Sm,4{ Cities 2001 <br /> <br />-207- <br /> <br /> <br />