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5 <br />LA515\1\1093668.v1 <br />Purchasing Guidelines & <br />Procurement Options <br />The Uniform Municipal Contracting law sets out procedures that cities must follow for contracts to sell, <br />purchase or rent supplies,materials,or equipment,or to construct,alter,repair or maintain real or personal <br />property. <br />Below are the procurement options depending on the estimated amount of the contract. <br />For purposes of this Policy, a contract is defined as a formal agreement that establishes binding long-term <br />obligations, conditions, and risk allocations between the City and another party. Contracts include <br />provisions that extend beyond routine purchasing terms—such as insurance requirements, indemnification, <br />liability allocation, and other legal protections that may impact the City’s financial or legal exposure over <br />time. <br />Approval Authority <br />City Council Approval is Required: <br />For any contract that includes or modifies long-term contractual conditions—such as insurance, <br />indemnification, or other legal risk provisions. <br />Administrative (Staff) Approval: <br />Agreements that are limited to standard purchasing terms, do not alter long-term contractual <br />conditions, and fall within an already approved budget or authorized spending threshold may be <br />executed by City staff without additional Council approval. <br />Quick Reference Guide <br />Required Approvals <br />Contract or <br />Purchase Amount <br />Procurement Options Director City <br />Admin. <br />City <br />Council <br />Less than $2,500 Open Market <br />Direct Negotiation X <br />$2,500 - $10,000 Open Market <br />Direct Negotiation w/ 2 quotations obtained <br />whenever possible. <br />X X <br />$10,000 <br />but not more than <br />$175,000 <br />Sealed Bids <br />Direct Negotiation <br />Cooperative Purchasing Contracts <br />Request for Proposals <br />X X X <br />$50,000 <br />and greater <br />if being assessed <br />Sealed Bids per M.S. 471.345, Subd. 3 <br />Cooperative purchasing contracts that comply with <br />the bidding process. <br />X X X <br />$175,000 <br />and greater <br />Sealed Bids per M.S. 471.345, Subd. 3 <br />Cooperative Purchasing Contracts that comply with <br />the bidding process. <br />X X X <br />$175,000 <br />and greater <br />Cooperative Purchasing Contracts X X X