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D. Electronic sales of surplus supplies, materials, and equipment. Cities may contract to sell <br />supplies, materials, and equipment, which are surplus, obsolete, or unused, regardless of their <br />cost, using an electronic selling process in which purchasers compete to offer the highest purchase <br />price in an open and interactive environment. (Minn. Stat. Sec. 471.345.17) <br />E. Guaranteed energy savings contracts. Contracts for energy conservation measures that will <br />reduce energy consumption or operating costs are not subject to competitive bidding. There are <br />additional procedural requirements that must be considered and satisfied. (Minn. Stat. Sec. <br />471.345.13) <br />F. Intergovernmental contracts. Contracts between governmental entities for the sale, lease or <br />purchase of real or personal property between federal, state or political subdivisions. (LMC <br />Competitive Bidding Requirements) <br />G. Real estate contracts. The purchase or sale of real property is generally not required to be <br />competitively bid. (LMC Competitive Bidding Requirements) <br />H. Professional services contracts. Professional services, such as those provided by doctors, <br />engineers, lawyers, architects, accountants, and other services requiring technical, scientific or <br />professional training. <br />I. Some group-insurance contracts. Group insurance for 25 or more employees. This type of <br />insurance must be solicited through requests for proposals. The request for proposals must be in <br />writing and must include the coverage to be provided, the criteria for evaluation of carrier proposals, <br />and the aggregate-claims records for the appropriate period. The request for proposals must be <br />published in a newspaper or trade journal for at least 21 days before the final day for submitting <br />proposals. (LMC Competitive Bidding Requirements) <br />J. Emergency contracts. The Emergency Management Act gives cities the ability to declare an <br />emergency for a limited period of time. During an emergency (“an unforeseen combination of <br />circumstances that calls for immediate action to prevent a disaster from developing or occurring”) <br />or disaster (“a situation that creates an actual or imminent serious threat to the health and safety <br />of persons”), cities are not required to use mandated contracting procedures. If the facts of the <br />situation do not indicate that a true emergency existed, such a contract would likely be considered <br />void. (LMC Competitive Bidding Requirements) <br />K. Some intergovernmental construction contracts. A cooperative agreement to construct a <br />project with the state or with another political subdivision of the state when the other unit does the <br />construction. This applies only where there is an agreement prior to the initial advertising for bids <br />on the project. (LMC Competitive Bidding Requirements) <br />L. Water tank service contracts. Under certain circumstances, a city may enter into a multi-year <br />contract for the engineering, repair, and maintenance of a water storage tank and its accessory <br />facilities without advertising for bids. (Minn. Stat. Sec. 471.345.5b) <br />M. Public safety equipment. A city may acquire by purchase or lease used public safety equipment <br />without competitive bids or proposals if the equipment is clearly and legitimately limited to a single <br />source of supply, and the contract price may be best established by direct negotiation. “Public <br />safety equipment” is defined as vehicles and specialized eq uipment used by a fire department in <br />firefighting, ambulance, and emergency medical treatment services, rescue, and hazardous <br />materials response. (Minn. Stat. 471.3455) <br />N. HRA exceptions. Under certain circumstances, a housing and redevelopment authority does not <br />need to comply with competitive bidding requirements. (Minn. Stat. 469.015.4) <br />O. Public improvements made by a subdivider. The construction and installation of public <br />improvements made by a subdivider or a subdivider’s contractor do not need to comply with <br />competitive bidding requirements. (Minn. Stat. 462.358.2a) <br /> <br />Richfield City Charter Requirements <br /> <br />A. Section 6.05. Purchases and Contracts. City contracts must be made in compliance with state law <br />and this charter. Where the amount of a contract is more than the dollar amount contained in <br />Minnesota Statutes, Section 471.345, Subd. 3 the contract must be approved by the City Council <br />upon the recommendation of the City Manager. When contracts are competitively bid, the Council <br />may reject any and all bids. The City Manager may approve contracts in an amount equal to or less <br />than the dollar amount contained in Minnesota Statutes, Section 471.345. Subject to the provisions