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The city is prohibited from using a reverse -auction procedure to contract for professional <br />or technical services. <br />4. Purchases from other government agencies: The city does not need to comply with <br />competitive bidding requirements when purchasing property or equipment from the <br />national government, the state, or any political subdivision of the state. The council may, <br />by resolution, authorize any of its officers or employees to enter a bid for the city at any <br />sale of equipment, supplies, materials, or other property. The council may authorize an <br />officer or employee to make a down payment or a payment in full, if necessary, in <br />connection with the bidding. <br />5. Real estate: The city is not required to follow the competitive bidding process for the <br />purchase, lease, or sale of real estate. <br />The city may use price agreements to acquire items frequently purchased in small <br />quantities. For example, gasoline, office supplies and auto parts price agreements. A <br />price agreement is a contract between the city and a merchant. Under the agreement, the <br />merchant agrees to supply all the city's requirements for the specified commodities during <br />the period of the agreement. The price may be fixed or variable, such as a set discount off <br />of the market price. The city usually estimates its probable needs even though it is not <br />obligated to purchase any definite quantity. Price agreements expedite delivery, reduce <br />paper work, and generally result in lower prices. The city may then make purchases as the <br />need arises. Depending on the commodity and the frequency of purchases, the council <br />may or may not require separate requisition forms. Although the purchasing requirements <br />may be circumvented the approvals and verification of funds are still a requirement for <br />price agreements. <br />City council may authorize the use of a credit card by any city officer or employee <br />otherwise authorized to make a purchase on behalf of the city. A purchase by credit <br />card must comply with all statutes, rules, and city policies applicable to city purchases. If a <br />city employee makes or directs a purchase by credit card that is not approved by the. <br />council, the employee is personally liable for the amount of the purchase and may be <br />subject to discipline. <br />1. 12.1 Conffict of Interest - Employee <br />No employee will participate directly or indirectly in a procurement when the employee <br />knows that the employee or any member of the employee's immediate family has a <br />financial interest to the procurement; when a business or organization in which <br />the employee; or any member of the employee's immediate family, has a financial interest <br />pertaining to the procurement; or when any other person, business or organization with <br />Page 7 of 8 <br />City of Lake Elmo Purchasing Policy <br />Adopted. ,Tune 5, 2012 <br />