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9 <br />LA515\1\1093668.v1 <br />In all items outlined pertaining to cooperatives,please contact the City Administrator or Finance Director if <br />you have any questions. <br />Change Orders <br />Change orders may occur due to City driven changes,errors and omissions,field directives, <br />unforeseen/hidden conditions,regulatory requirements or changes that are contractor driven.Changes that <br />need to be made during construction often need to be addressed and approved in a timely manner in order <br />to keep the project on schedule. <br />1)For a change order less than $100,000,which does not result in exceeding the overall project budget, <br />the City Administrator may approve these. <br />2)At the discretion of the City Administrator,for a change order less than $100,000,but still within the <br />scope of the overall project budget,it may be presented to the City Council for consideration and <br />approval. <br />3)For any change order that results in exceeding the overall project budget, and/or exceeds $100,000 <br />must be approved by the City Council. <br />Other Bidding Requirements <br />The City must not avoid competitive bidding requirements by splitting a contract into several contracts, <br />each of which is below the minimum amount requiring bids. <br />Bid specifications may not be written so as to exclude all but one type or kind of supplies or equipment <br />unless it is for public safety equipment that is clearly and legitimately limited to a single source of supply. <br />The City may not accept a bid that includes a number of items when the advertisement called for separate <br />bids for each item. <br />The City must re-bid the contract if the City makes a material change in the specifications of the contract. <br />Minnesota Statutes Chapter 429 (local improvement code)applies to all public improvement contracts <br />(i.e., sewer, water and streets) being financed with special assessments. <br />Purchase or Lease of Used Public Safety Equipment <br />In 2011,cities were granted authority to lease or purchase used public safety equipment (“vehicles and <br />specialized equipment used by a fire department …in firefighting,ambulance and emergency medical <br />treatment services,rescue,and hazardous materials response”)without competitively bidding in certain <br />specified circumstances.Competitive bidding or proposals are not required,“if the equipment is clearly and <br />legitimately limited to a single source of supply,and the contract price may be best established by direct <br />negotiation.” See Minnesota Statutes Section 471.3455. <br />Equipment Leases and Lease-Purchases <br />All lease agreements require review by the Finance Director and legal counsel and City Council approval is <br />required for all leases. For the leasing of equipment,Department Directors must obtain at least two quotes <br />to ensure the best financing rates.Staff will conduct a leave versus buy analysis to determine the most <br />cost-effective method.Lease performance bonds are sometimes prudent for lease-purchases,and as such,