Agenda - Council Work Session - 04/11/2017

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Section 4: Purchasing Alternatives 4.1 Uniform Municipal Contracting Law, Chapter 471.345 It shall be the policy of the City of Ramsey that the Uniform Municipal Contracting Law, Minnesota Statutes Chapter 471.345 shall be the policy of the city. Changes in this law will automatically become the policy of the city. City policy may be more restrictive then State Law, but may not be less restrictive. Records of quotes and bids shall be retained for at least one year after the completion of the contract or purchase or until the annual audit for the year of purchase is completed,whichever is longer. 4.2 Sealed Bids/Major Purchases (See League of MN Cities Information Memo Entitled Competitive Bidding Requirements in Cities) • A formal sealed bid procedure is required for all purchases in excess of$100,000 except professional services. • A purchase (contract)that exceeds $100,000 cannot be split into several smaller purchases (contracts) to avoid the sealed bid process. • City Council approves all bids and specifications. • A published notice is required in the official city newspaper at least ten days in advance of the bid opening. The notice may also be published on the city's official website or in a recognized trade journal. o A public construction project that exceeds $50,000 must meet the Responsible Contractor Requirements (Minn Statute 16C285) • All bid openings are to be administered by the City Administrator and/or the originating department. • The preparation of all specifications are to be the responsibility of the City Administrator and/or the originating department. • Required authorization for plans and specifications is the responsibility of the City Administrator and/or the originating department. • The City Council must formally approve the bid contract. 4.3 Quotes/Intermediate Purchases If a purchase is estimated to exceed $25,000 but not to exceed$100,000, the purchase may be made either by sealed bids or by direct negotiation based upon quotations. If a purchase is made in this range, staff members are required to obtain at least two written quotes and the quotations must be kept on file for at least one year. All such quotes must be forwarded to the Finance Department with the purchasing documents. If a purchase is estimated to be $25,000 or less, the purchase may be made by either obtaining quotations or by buying the item directly on the "open market". If the quotation option is chosen, at least two quotes will be obtained and forwarded to the Finance Department with the purchasing documents. 4.4 Professional Service Contracts: • Cities are not required to follow the competitive bidding process when contracting for professional services such as those provided by doctors, engineers,lawyers, architects, accountants, as well as other services requiring technical, scientific or professional training. The city retains outside professional services in the area of: • Legal • Planning • Auditing • Assessing • Engineering • Banking • Towing 3