Agenda - Council Work Session - 11/18/2014

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RELEVANT LINKS: Minn. Stat. § 429.041, subd. 2. See Form 10. Minn. Stat. § 429.041, subd. 4. See LMC information memo Competitive Bidding Requirements in Cities. Minn. Stat. § 429.041, subd. 1. Minn. Stat. § 429.041, subd. 1. See Section I-C-1: Coordinating procedure. Minn. Stat. § 429.041, subd. 2. See Form 20. Minn. Stat. § 429.041, subd. 2. See Form 21. Minn. Stat. § 574.26, subd. 2. See Form 22, 22A and Form 22B. • Contracts for all or part of the work to be performed by outside parties, or • Orders all or part of the work to be done by day labor (city employees) and merely contracts for any necessary materials and equipment. In either case, contracting law applies. Consult the city attorney to coordinate the contracting process in combination with the special assessment process and remember to include the city's right to reject all bids in advertisements and bid specifications. 1. Performance by contract The uniform municipal contracting law, or competitive bidding process, applies to most contracts for local improvements. If a contract is likely to exceed $100,000, cities must use municipal contracting procedures, which include the "best value" alternative in some situations. There is an exception to the competitive bidding requirement; the council may order the use of day labor (city employees) discussed subsequently for grading, graveling or bituminous surfacing of streets and alleys regardless of the estimated cost. Chapter 429 is very specific in bid advertisement requirements. If the estimated cost exceeds $100,000, the city must advertise for bids for the improvement in the newspaper and such other papers and for such length of time as it may deem advisable. If the estimated cost exceeds $200,000, publication must be made no less than three weeks before the last day for submission of bids once in the newspaper and at least once in either a newspaper published in a city of the first class or a trade paper. A definition of "trade paper" and the required details of the advertisement are set out in statute. Cities should remember that citizens may challenge special assessments in district court. If a court reduces the amount of a special assessment, the city has less money than anticipated to pay for the work. For this reason, cities may want to coordinate the timing of the competitive bidding process and the special assessment process. When contracting for an improvement, the council must require the execution of one or more written contracts which comply with relevant public contracting law. Also, contractors must give the city both performance and payment bonds. League of Minnesota Cities Information Memo: 9/22/2011 Special Assessment Guide Page 18