Management Report and Recommendations 12/31/1983

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City of Lino Lakes Management Report, Page 41 Subd. 3. Contracts over $15,000. If the amount of the contract is estimated to exceed $15,000, sealed bids shall be solicited by public notice in the manner and subject to the requirements of the law governing contracts by the particular municipality or class thereof provided that with regard to repairs and maintenance of ditches, bids shall not be required if the estimated amount of the contract does not exceed the amount specified in section 106.571, subdivision 2. Subd. 4. Contracts from $10,000 to $15,000. If the amount of the contract is estimated to exceed $10,000 but not to exceed $15,000, the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. Subd. 5. Contracts less than $10,000. If the amount of the contract is estimated to be $10,000 or less, the contract may be made either upon quotation or in the open market, in the discretion of the governing body; but shall be based on at least two quotations which shall be kept on file for a period of at least one year after receipt thereof. An apparent oversight in the text of this law does not set a minimum required contract. Subdivision 5 includes "contracts less than $10,000 ". A "contract" includes an agreement to purchase supplies and materials. Strict interpretation of this statute may require retention of two quotations on virtually all supply and material purchases of the City. There is pending legislation to correct this apparent oversight in the 1984 legislative session. We recommend that the City be aware of compliance parameters and correspondingly review purchase procedures of the City to assure such compliance.