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CITY OF SHOREVIEW, MINNESOTA <br />PURCHASING POLICY <br />Effective November 18, 2019 <br /> <br />SCOPE: This purchasing policy applies to all employees of the City of Shoreview, <br />Minnesota who are authorized to enter into contracts and purchase goods on behalf of the <br />City. <br /> <br />OBJECTIVES: Purchases of the City of Shoreview shall be in accordance with Minnesota <br />Statutes Chapter 471.345 Uniform Municipal Contracting Law, or as amended. There are <br />three general purposes behind this policy. First, it is intended to ensure taxpayers the lowest <br />price and best value for their tax dollars when the City makes a contract. Second, it allows <br />contractors a level playing field on which to compete for City contracts. Third, it limits the <br />discretion of Contract-making officials and thus reduces the possibility of fraud or <br />favoritism. <br /> <br />All participants in the purchasing process shall seek to act responsibly as custodians of the <br />public trust. Purchasing officials shall avoid any transaction that might impair public <br />confidence in the City’s ability to govern effectively. Purchasing officials shall recognize <br />that the purchasing process is subject to public review and evaluation. The overall process <br />shall be designed and managed with a degree of professionalism worthy of the public trust. <br /> <br />MINNESOTA STATUTE REQUIREMENTS: <br /> <br /> Contract Defined: The definition of the term “contract” is broad, but it does not <br />include all contracts. Generally, a “contract” is an agreement entered into by the City <br />for the sale or purchase of supplies, materials, equipment or the rental thereof, or the <br />construction, alteration, repair, or maintenance of real or personal property. <br /> <br /> State Statutes Group Contracts Into The Following Categories: <br /> <br /> Contracts over $175,000: If the amount of the contract is estimated to exceed <br />$175,000 the City must use the competitive bidding process. <br /> <br /> Contracts from $25,000 to $175,000: Contracts that are estimated to exceed <br />$25,000 but not exceed $175,000. The City may make the contract using the <br />competitive bid process or by quotations through direct negotiation. If the <br />latter method is used, the City must seek at least two quotations and keep <br />them on file for at least one year. <br /> <br /> Contracts $25,000 or less: If the contract is estimated to be $25,000 or less <br />the City has the option of making the contract upon quotation or in the open <br />market. If the City makes the contract upon quotations, the City must obtain <br />at least two quotations and keep them on file for at least one year after their <br />receipt.