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FC CASE AUTHORIZE VARIOUS 2004 CAPITAL PURCHASES By: Diana Lund, Finance Officer Background: Included in the Adopted 2004 General Fund Budget are the items shown on the attached schedule [Exhibit 1]. Minnesota bid laws require different levels of competitive bidding based on dollar amounts of the item to be purchased. These items will be funded via the Capital Equipment Certificates that were issued December 30, 2003 and the Equipment Replace Fund. The basic bidding guidelines are as follows: 1) for purchases estimated to be $50,000 or more --- sealed bids solicited by public notice in the official newspaper [although these requirements can be met by utilizing cooperative purchasing ventures such as state or county purchasing cooperatives] 2) for purchases estimated to be $10,000 to $50,000 --- sealed bids are recommended or direct negotiations, with three quotations whenever possible [no less than two] 3) for purchases estimated to be less than $10,000 --- open market or quotations [with at least two quotations] Capital Items - Category_ #1 - The items that fall under this category are as follows: Police 3 Squad Replacements Included in the 2004 budget is $90,000 for the purchase of three replacement squad cars. The City is on a rotating program of squad replacement. These vehicles can be purchased from the Hennepin County Cooperative Purchasing venture through Superior Ford. Fire Replace Rescue #2 Included in the 2004 budget is $55,000 for the purchase of a replacement of Rescue #2. Sealed bids would need to be solicited, unless a cooperative purchasing agreement can be found.