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FC CASE AUTHORIZE VARIOUS 2001 CAPITAL PURCHASES By: Diana Lund, Finance Officer Background: Included in the Adopted 2001 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: Data Processing Included in the 2001 budget is $50,000 for an updated phone system. An updated phone system would allow incoming calls faster service, either via direct phone lines or faster transfer service. Specifications would need to be prepared and sealed bids solicited. It is being asked that staff be allowed to prepare specifications and solicit sealed bids for the purchase of a new phone system. Police 2 Squad Replacements Included in the 2001 budget is $60,000 for the purchase of two replacement squad cars. The City is on a rotating program of squad replacement, with three squads being replaced in 2001 and two in 2002. These vehicles can be purchased from the Hennepin County Cooperative Purchasing venture through Superior Ford.