04-10-2019 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 Expenditures, Purchasing, and Contracts Chapter 22 | Page 16 Once the cities involved in the joint powers agreement agree on the specifications, one city may advertise for bids on behalf of all the cities party to the agreement. Rather than specifying a specific number of items, they will advertise for “…up to (number) of (item).” This way, each participating entity can make the final decision on whether to purchase from the successful bidder. Minn. Stat. § 16C.105. Minnesota’s Cooperative Purchasing Venture. Minn. Stat. § 471.345, subd. 15. Many cities also purchase a variety of equipment and supplies from state contracts. The Department of Administration operates a cooperative purchasing program that cities can join. In fact, for contracts estimated to exceed $25,000, a city must consider the availability, price, and quality of supplies, materials, or equipment available through the state cooperative purchasing venture before buying through another source. Minn. Stat. § 471.345, subd. 15. If a municipality does not utilize the state's cooperative purchasing venture, a municipality may contract for the purchase of supplies, materials, or equipment without regard to the competitive bidding requirements of this section if the purchase goes through a national municipal association's purchasing alliance or cooperative created by a joint powers agreement that purchases items from more than one source on the basis of competitive bids or competitive quotations. 6. USDA assistance Minn. Stat. 465.73. For purposes of constructing, repairing, or acquiring city halls, fire halls, fire or rescue equipment, libraries or child care facilities (if otherwise authorized by law), a city may borrow (not to exceed $450,000) from either (i) funds granted to a rural electric cooperative or (ii) directly from an agency of the United States Department of Agriculture by a note secured by a mortgage or other security agreement on the property purchased with the borrowed funds. The city may pledge its full faith and credit and assign or pledge the revenues, if any, from the facilities or equipment to secure the loan. The obligation of the note need not be included when computing the net debt of the city, nor do the voters need to approve the issuance of the note. 7. Standards and specifications Minn. Stat. § 471.35. Minn. Stat. § 471.36. A city should prepare quality standards to help guide all significant city purchases. The standards should set forth the minimum requirements for purchases with brief, clear descriptions. The standards, however, also must be broad enough to cover all competitive supplies and equipment.