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RELEVANT LINKS: <br />League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 <br />Expenditures, Purchasing, and Contracts Chapter 22 | Page 20 <br /> Surplus equipment includes equipment used by a local government public <br />works department, and includes cellular phones and emergency medical <br />and firefighting equipment no longer needed by the local government <br />(because the phones or equipment no longer meet industry standards for <br />emergency medical services, police, or fire departments; have minimal <br />value; or have no resale value). Before donating surplus equipment, a city <br />must adopt a policy on how it will determine what qualifies as surplus <br />eligible for donation and how it will select nonprofit organizations eligible <br />to receive donations. One caveat worth mentioning—the policy “must <br />address the obligations of the local government to disclose to the nonprofit <br />that the surplus equipment may be defective and cannot be relied upon for <br />safety purposes.” <br /> V. Contracts in general <br /> <br /> <br />Minn. Stat. § 412.691. <br />Generally, only the council may make contracts on behalf of the city. <br />Individual councilmembers, council committees, and city administrative <br />officers do not have that authority. However, the manager in Plan B <br />statutory cities may let contracts, on the cities behalf, when the amount <br />does not exceed $20,000, unless the council sets a lower limit. Charters <br />often give the city manager similar limited authority. <br />City of Staples v. Minn. <br />Power & Light Co., 196 <br />Minn. 303, 265 N.W. 58 <br />(1936). <br />As long as a city council acts reasonably and honestly, the council <br />generally may enter into contracts on any terms it deems appropriate. If a <br />contract does not require a tax levy higher than that allowed by law or <br />result in indebtedness that exceeds the city’s statutory debt limit, the law <br />does not place an expenditure limit on such agreements. <br /> <br />Minn. Stat. § 412.201. <br /> <br />State ex rel. Kron v. Hodapp, <br />104 Minn. 309, 116 N.W. <br />589 (1908). <br />The council should approve every contract by resolution. In addition, the <br />mayor and the clerk (or the manager in Plan B cities) must sign and affix <br />the city seal to the contract. So long as the contract expresses an agreement <br />of the council as a whole, and no other reasonable doubt concerning the <br />contract’s legality exists, these officials may not, on the basis of their own <br />judgment, refuse to execute the contract. <br /> VI. Competitive bidding requirements <br />Minn. Stat. § 471.345. <br />LMC information memo, <br />Competitive Bidding <br />Requirements in Cities. <br />As mentioned above, the uniform municipal contracting (competitive <br />bidding) law requires cities to use the competitive bidding process for <br />certain contracts estimated to exceed $175,000. <br /> The competitive bidding law applies to: <br /> • Contracts for the sale, purchase, or rental of supplies, materials, or <br />equipment.