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FC CASE AUTHORIZE VARIOUS 2002 CAPITAL PURCHASES By: Diana Lund, Finance Officer Background: Included in the Adopted 2002 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. 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 2002 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 fi'om the Hennepin County Cooperative Purchasing venture through Superior Ford. Fire Aerial Fire Truck Included in the 2002 budget is $630,000 for the purchase of an aerial fire truck. Sealed bids would need to be solicited, unless a cooperative purchasing agreement can be found.