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 37 In selecting the consultants for interviews, the council may wish to consider the following questions: • Does the consultant have experience with the specific type of project? • What is the consultant’s reputation? Contact references and other cities that have used the consultant. Pay attention to the financial responsibility of the consultant and the level of liability insurance coverage maintained. • Does the consultant have adequate, experienced staff? • Who on the consultant’s staff will do the project and what are those individuals’ qualifications? • What is the time schedule for completing the work? Is it realistic? • How far is the consultant’s office from the project or problem? LMCIT Contract Review Service. After the interview, the council should select one firm, and city staff should negotiate a written contract with the consultant for council approval. The contract should address liability. C. Bidding for consultant services Krohnberg v. Pass, 187 Minn. 73, 244 N.W. 329 (1932). Schwandt Sanitation v. City of Paynesville, 423 N.W.2d 59 (Minn. Ct. App. 1988). A.G. Op. 707a-7 (July 22, 1985). A.G. Op. 707-A (Feb. 8, 1990). Again, state law does not require cities to competitively bid contracts for consultants, but cities may choose to do so. Cities should remember that a consultant’s competence and qualifications generally carries more weight than the possibility of saving money, making competitive bidding not as ideal for these situations. If the city feels a consultant may overcharge, checking with previous clients should reveal that information and may take the place of the financial safeguards achieved with competitive bids. D. Contracting with consultants Some consultants attempt to insert clauses within their service contracts that severely limit their liability for errors. Councils should take special precautions to have all contracts carefully reviewed before the parties sign. Contractual terms need to be reviewed, even if the consultant claims the terms and conditions represent “the standard agreement for all municipal clients.” Executed contracts bind the parties, even if the person signing the contract did not read it or understand its contents. LMCIT Contract Review Service. Some consultants often include a contract term that states the city will reimburse the consultant for extra costs (even if those costs resulted from the consultant’s negligence) or requires the city to report claims against the consultant within a very short time period. Dollar limitations on liability can prove problematic for cities, as can agreeing to limiting liability to the amount of the consultant’s liability insurance.