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Changes to City-Contracting Requirements
<br />
<br />By Susan Naughton '
<br />
<br /> p~hc 21)04 legislative session resulted
<br /> in several significant changes to
<br /> city-contracting requirements.
<br /> These changes currently apply ~o
<br /> ci~ co~tracts, aud are described
<br /> below.
<br />City managers' purchasing
<br />authority increased to $20,000.
<br />The purchasing authority of ciW
<br />managers in I:~lan B statutory cities was
<br />increased to $20,000. (The ciW council is
<br />stiJl authorized to provide a lower ~i~t if
<br />it chooses.) (Minn. Stat. 5 4[2.691)
<br /> Un,btm competitive-bidding threshold
<br />of $50,000. The threshold to determine
<br />whether certain contracts are subject to
<br />competitive bidding is now $50,000 for
<br />all cities, regardless of their population.
<br />Contracts above the threshold are gen-
<br />erally sul)~ect to competitive bidding
<br />requiremcncs if they are for the purchase,
<br />sale or rental o( supplies, materials or
<br />equipment, or ~br d~e construction,
<br />alteratiot~, repair or maintenance of real
<br />or personal property. (Minn. Stat. ~
<br />471.345)
<br /> Electronic reverse anctions Jbr purd~ase
<br />of supplies, materials, and equipment
<br />authorized. Cities may now use an
<br />electronic, reverse-auction procedure
<br />to contract fbr the purchase of supplies,
<br />materials, a~d equipment. This ~pe of
<br />procedure allows vendors to compete
<br />to provide thc requested supplies,
<br />materials or equipment at the lowest
<br />selling price m an open and interactive
<br />electronic cnviromncnt (like eBay).
<br />Cities are prohibited from using a
<br />reVel.'Sc-atlcEioll pr()cCdUl'O to contract
<br />fbr prot~ssi(mal ,)r techmcal services.
<br />(Minn. 5tat. 5 471..345)
<br /> Electronic sale ~*suwlux city xupplies,
<br />materials, and equipment authorized.
<br />Cities may ~>w sell supplies, materials~
<br />and cquii.m~c~t that arc surplus, obsolete
<br />or unused using at~ clectrot~ic selling
<br />process in which the purchasers com-
<br />pete t() ptu-(:h:tsc at the highest price in
<br />:111 ()pCll ,lilt{ ultcr:lctJve ci]virolnllCll[
<br />
<br />(like eBay). (Minn. Stat. ~ 471.345)
<br />Because Minn. Stat. ~5 15.054 prohibits
<br />the sale of city property to city officers
<br />and only allows the sale of certain city
<br />property to city employees if a specific
<br />procedure is f611owed, cities should
<br />expressly state in the electronic adver-
<br />tisement that city staff and officials are
<br />prohibited from purchasing the surplus
<br />supplies, material or equipment. The
<br />city should *also verify that the purchaser
<br />is not a city official or employee at the
<br />time of sale.
<br /> Bids, quotes, and proposals may be
<br />submitted electronicalll/. Cities may
<br />now allow vendors to submit bids,
<br />quotations, and proposals electronically.
<br />Cities may also allow vendors to submit
<br />bid bonds, performance and payment
<br />bonds, or other types of security elec-
<br />tronically. (Minn. Stat. ~ 471.345)
<br /> Alternative dissemination of bids
<br />and RFPs authorized. Under certain
<br />circumstances, cities are now autho-
<br />rized to use two alternative means of
<br />disseminating bid solicitations, requests
<br />for information, and requests for pro-
<br />posals in addition to, or as an alternative
<br />to, the statutory requirements for news-
<br />paper publication. The two alternative
<br />means of dissemination are on a city's
<br />web site or in a recognized trade journal.
<br /> Three conditions must be met
<br />before a city is authorized to use these
<br />alternative means of dissemination.
<br />First, the alternative dissemination must
<br />be m substantially the same format and
<br />for the san:re period of time as would be
<br />required for newspaper publication.
<br />Second, the ci~ must sintultaneously
<br />
<br />publish, either as part of its regular
<br />meeting minutes or in a separate notice,
<br />a description of all the solicitations or
<br />requests being disseminated through
<br />alternative means. Third, tbr the first
<br />slx months after a city designates an
<br />alternative means of dissemination, it
<br />m, ust continue to publish solicitation
<br />of bids, requests for information, and
<br />requests for proposals in the o~cial
<br />newspaper in addition to the alternative
<br />method. The publication in the official
<br />newspaper must indicate ~vhere to find
<br />the designated alternative method. At~ter
<br />the expiration of the sLx-month period,
<br />an alternative means of dissemination
<br />satisfies any publication requirements.
<br />(Minn. Stat. ~ 331A.03)
<br /> Free posting on newspapers' web sites.
<br />The final change applies to newspapers
<br />that publish public notices, if a newspa-
<br />per maintains a web site, and it accepts
<br />and publishes public notices, the news-
<br />paper must agree to post all public notices
<br />on its web site at no additional cost.
<br />The public notice must remain on the
<br />web site during its full publication
<br />period. Failure to post or maintain a
<br />public notice on the nesvspaper's web
<br />site does not affect its validity. (Minn.
<br />Stat. ~ 331A.02) ~-
<br />
<br />SttSalt *;aughtoei is research ,lttOrlle¥
<br />widt the League qf Mim~esota Cities.
<br />Phone: (651)281-1232. E-mail:
<br />s,t,u{qhwOhnnc, o~.
<br />
<br />.'k'd;;I ' I _3{)!i-i l'Vl iNN ES© FA C[T1ES 23
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