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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 26 <br />Minn. Stat. § 429.041, subd. <br />2. If, for a local improvement project under the special assessment statutes, <br />either no bid is submitted or the only bids submitted exceed the engineer’s <br />estimate, the council may either advertise for new bids or, without <br />advertising for bids, directly purchase the materials for the work. If the <br />city directly purchases the materials for the work, then the city will <br />complete the project by either employing day labor or in a different <br />manner considered proper by the council. <br />Minn. Stat. § 429.041, subd. <br />1. In the case of projects paid for with special assessments, a city may delay <br />accepting a bid until after the assessment hearing to make sure sufficient <br />funds exist to pay for the project. <br /> The council must let the contract or order the work done no later than one <br />year after the adoption of the resolution ordering the improvement. <br /> 6. Rejecting bids <br />Minn. Stat. § 429.041, subd. <br />2. <br /> <br />The local improvement code gives the city the right to reject any and all <br />bids for a local improvement, even if the city did not include such a <br />statement in the advertisement. The same holds true for any city with a <br />similar charter provision applying to other contracts. <br />Elecs. Unlimited, Inc. v. <br />Village of Burnsville, 289 <br />Minn. 118, 182 N.W.2d 679 <br />(1971). <br /> <br />In any other case, the city should reserve the right to reject any or all bids <br />or to waive informalities or irregularities. If the city has not reserved the <br />right to reject any and all bids, a court possibly could compel the city to <br />award the contract to the low bidder. <br /> 7. Lowest responsible bidder <br />Minn. Stat. § 412.311, subd. <br />1. Minn. Stat. § 429.041, <br />subd. 2. <br /> <br />Part VI-D, Best value <br />contracting. <br />Statutory city contracts, and the contracts of all cities for improvements <br />under the local improvement code, generally must go to the lowest <br />responsible bidder. Most home rule charters contain similar requirements <br />that govern contracts not under the local improvement code, using terms <br />such as “lowest bidder” or “lowest and best bidder” to describe the <br />process. <br />Kelling v. Edwards, 116 <br />Minn. 484, 134 N.W. 221 <br />(1912). Elecs. Unlimited, <br />Inc. v. Village of Burnsville, <br />289 Minn. 118, 182 N.W.2d <br />679 (1971). Otter Tail Power <br />Co. v. Village of Elbow Lake, <br />234 Minn. 419, 49 N.W.2d <br />197 (1951). Westra Constr. <br />Inc., v. City of Minnetonka, <br />No. A03-50 (Minn. Ct. App. <br />Dec. 30, 2003) (unpublished <br />decision). <br />The bidder who submits the lowest bid in dollars does not necessarily <br />represent the “lowest responsible bidder” and the council has some <br />reasonable discretion in choosing among bidders. Courts have interpreted <br />the term “responsible bidder” to include considerations of financial <br />responsibility, integrity, skill, and the likelihood of performing faithful and <br />satisfactory work. Promptness, for example, represents an element of <br />responsibility. When bids on equipment items cannot provide precise <br />specifications, the council may exercise reasonable discretion in <br />determining the lowest bidder. In doing so, the council can consider the <br />quality, suitability, and adaptability of the equipment sought.