Agenda - Council Work Session - 09/08/1999

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MEMORANDUM TO: FROM: RE: DATE: James E. Norman, Ramsey City Administrator William K. Goodrich, Ramsey City Attorney Computer Purchase September 2, 1999 You have advised me of the following: The City, through LOGIS, ordered certain computer equipment which was delivered to it by Inacom. After taking receipt of the computer equipment, the City obtained three quotes for the equipment. The sealed bid process was not used since it was anticipated that the equipment cost would not exceed $25,000.00. o DataSource Hagen ("DataSource") was the lowest bidder and importantly, its bid was lower then Inacom Information Systems ("Inacom") by approximately $1,300.00. By City Council resolution, 99-07, the City accepted the lowest bid (quote) from DataSource and directed that a contract be awarded to it. ° The computer equipment has been delivered to the City by Inacom and it is now too late, according to Inacom, to return it. In addition, software was also installed in the DataSource equipment making it impossible to return and LOGIS has paid Inacom. 6. The City has not yet installed the new computer equipment and has not paid Inacom. DataSource is contacting the City and wants to conclude the sale to the City p~rsuant to Resolution 99-07. The City Council at its August 24, 1999 meeting approved the payment to Inacom subject to my legal opinion approving the transaction. It is significant that the formal competitive bidding process was not used in seeking the vendor. Under Minn. Stat. {}471.345, Subd. 4 the procedure for purchasing equipment or entering into a contract which has a cost between $10,000.00 and $25,000.00 is to be either by sealed bids or direct negotiation by obtaining two or more quotations and without advertising for bids or otherwise complying with the requirements of competitive bidding. However, the City did not follow the two quotation requirement.