05-12-26 City Council Workshop Packet

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24 | Page Construction and Other Contracts A "contract" means an agreement entered into by a municipality for the sale or purchase of supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property. All contracts will be shared with Finance. Original Contract • If the proposed contract amount is less than $25,000, the responsible department head may sign the contract on behalf of the City. • If the proposed contract is anticipated to exceed $25,000, but less than $50,000, the City Manager must sign the contract on behalf of the City. • If the proposed contract is anticipated to exceed $50,000, the Project Manager must seek Council approval to authorize the City Manager to execute the contract. Contract amendments • If the original contract exceeded $50,000 and the cumulative amendment increase is less than 10 percent of the original contract amount, the City Manager may sign the amendment. • If the original contract exceeded $50,000 and the cumulative amendment increase equals or exceeds 10 percent of the original contract amount, the City Manager must seek Council approval of the amendment. • If the original contract was less than $50,000 and the cumulative amendment increase brings the proposed amended contract to $50,000 or greater, the City Manager must seek Council approval of the amendment. Contract on Open Market For contracts valued below the amount established by state statute (MSS 471.345), the City's policy will be to purchase items on the open market or by quotation. Quotes will be documented on the purchase unless the item is a routinely purchased item which will be price compared annually. • Purchases made for items under $2,000.00 can be made on the open market without quotes. • Purchases between $2,000.01 and $9,999.99, verbal or written quotes are encouraged. When the quotes are verbal, document the quote, listing the contact person, phone number, amount of quote, etc. • Purchases estimated to exceed $10,000.00 but less than $50,000.00 need two quotes. quotes must be in writing and documented. • Contracts on the open market may be signed by the department head or designee. Contracts requiring quotes For contracts requiring quotes as set forth by state statute (MSS 471.345), the City's policy will be to obtain at least two quotes. These quotes will be in writing. Departments Shall keep all quotes on file for one year from the date of purchase. The quotes shall be kept with the invoice. • If purchases are estimated to exceed $10,000 but not to exceed $50,000, the purchase may be made either upon sealed bids or by direct negotiation based upon quotations per MSS 471.345.