HomeMy WebLinkAbout05-12-26 City Council Workshop PacketCity Council Workshop
3880 Laverne Avenue North
Community Room
Tuesday, May 12, 2026
6:30 p.m.
AGENDA
Call To Order
Sidewalk/Trail Snow Removal Ordinance
Public Works Director Pete Tholen presenting
STAFF REPORT - SNOW REMOVAL ON TRAILS.PDF
PRESENTATION - SNOW REMOVAL ON COUNTY AND CITY TRAILS.PDF
Purchasing Policy Review
STAFF REPORT - PURCHASING POLICY REVIEW.PDF
CITY OF LAKE ELMO PURCHASING POLICY.PDF
PURCHASING POLICY EXAMPLES.PDF
Public Art Program
COUNCIL MEMO -PUBLIC ART.PDF
PUBLIC ART POLICY.PDF
LOCATION OF PUBLIC ART DISPLAY.PDF
2026 City Celebration Discussion
COUNCIL MEMO -CITY CELEBRATION 2026 DISCUSSION.PDF
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjourn
Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership
with our Community
In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate
remotely via interactive technology.
I.
II.
Documents:
III.
Documents:
IV.
Documents:
V.
Documents:
VI.
Documents:
VII.
City Council Workshop3880 Laverne Avenue North Community RoomTuesday, May 12, 20266:30 p.m.AGENDACall To OrderSidewalk/Trail Snow Removal OrdinancePublic Works Director Pete Tholen presentingSTAFF REPORT - SNOW REMOVAL ON TRAILS.PDFPRESENTATION - SNOW REMOVAL ON COUNTY AND CITY TRAILS.PDFPurchasing Policy ReviewSTAFF REPORT - PURCHASING POLICY REVIEW.PDFCITY OF LAKE ELMO PURCHASING POLICY.PDFPURCHASING POLICY EXAMPLES.PDFPublic Art ProgramCOUNCIL MEMO -PUBLIC ART.PDFPUBLIC ART POLICY.PDFLOCATION OF PUBLIC ART DISPLAY.PDF2026 City Celebration Discussion
COUNCIL MEMO -CITY CELEBRATION 2026 DISCUSSION.PDF
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjourn
Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership
with our Community
In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate
remotely via interactive technology.
I.II.Documents:III.Documents:IV.Documents:V.Documents:
VI.
Documents:
VII.
STAFF REPORT
DATE: 5/12/26
WORKSHOP DISCUSSION
TO: Mayor and Councilmembers
FROM: Peter Tholen, Public Works Director
AGENDA ITEM: Snow Removal on City and County trails in The Right of Way
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐ Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND: During the May 6, 2025, Council meeting, the Council considered whether the city
should provide snow removal on county trails within the county right-of-way, as well as on city trails
within the City’s right-of-way. Public Works staff currently remove snow from select sidewalk segments
throughout the City where the property abuts City-owned land. In many areas, sidewalks are located
on one side of the street, with an asphalt trail on the opposite side. Along county roadways, there is
typically only an asphalt trail.
ISSUE BEFORE COUNCIL: Should the City Council consider snow removal for both city trails within the
right-of-way and county trails within the county’s right-of-way.
PROPOSAL DETAILS/ANALYSIS: Providing snow removal on county trails would require varying levels
of staff time depending on the season. Early-season snow events are estimated to require
approximately 1–2 man-hours per event, while late-season snow events may require 3–4 man-hours
due to increased snow accumulation and compaction. There is also potential for incidental impacts
associated with trail plowing operations. These include possible damage to adjacent residential
driveways and turf areas, which could result in additional maintenance and repair costs. If snow
removal were expanded to include city trails, the city may need to purchase additional equipment. This
could include a Bobcat Toolcat with a snowblower, with an estimated capital cost of approximately
$95,000. Ongoing operational impacts should also be considered, including annual costs associated
with repairing lawn damage (e.g., labor, black dirt, and seed).
FISCAL IMPACT:
Snow removal on county trails early season 1– 2 manhours
Snow removal on county trails late season 3 – 4 manhours
Damage to residential driveways
Additional equipment if city and county trails required snow removal, Bobcat Toolcat at $95,000
Additional yearly, lawn damage repairs – labor, black dirt and seed
OPTIONS:
Maintain current practice and do not plow trails.
Provide full snow removal on city trails within the City’s right-of-way, and do not perform snow
removal on county trails within the county’s right-of-way.
Provide full snow removal on both city and county trails within the City’s and county’s
respective rights-of-way.
Select a specific area and conduct a pilot program.
RECOMMENDATION: For the Council to provide direction to staff regarding desired service levels and
next steps.
ATTACHMENTS:
Maps
Snow Removal on City and County Trails Within the Right-of-Way
Snow Removal on City and
County Trails Within the Right-of-
Way
Council Workshop May 12,2025
City Trails South of Stillwater Boulevard North
City Trails South of Stillwater
Boulevard North
City Trails North of
Stillwater Boulevard
North
4th Quarter
4th Quarter
Timeline
.
3rd QuarterList a milestone or
deadline.
List a milestone or
deadline.
Trails Within the County Right-of-Way on Stillwater
Boulevard North
Title
Title
Stakeholder Name
Stakeholder Name
Stakeholder Name
Trail Within the County Right-of-
Way on Keats Avenue
ad lorem ad loremad lorem
ad lorem
ad lorem
ad lorem
ad lorem
Trails Within the County Right-of-Way
on Lake Elmo Avenue North
#
20xx 20xx20xx20xx20xx
Trails Within the County Right-
of-Way at Stillwater Boulevard
and Jamaica Avenue North
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Lo r e m ips u m do lo r s it am e t ,
c o n s e c t e t u r a d ip is c in g e l it .
Du is vu lp ut a t e nu l la a t a nt e
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Lorem ipsum dolor sit amet,
Lorem ipsum dolor sit amet,
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Early Season Snow
Removal
Equipment: 1 pickup truck
Estimated Labor: 1–2
man-hours
Late Season Snow
Removal
Equipment: 1 Toolcat with
blower
Estimated Labor: 3–4
man-hours
Equipment and Man-
Hours Required to
Plow County Trails
Within the Right-of-
Way
Questions?
STAFF REPORT
DATE: May 12, 2026
DISCUSSION
TO: Mayor and Councilmembers
FROM: Nicole Miller, City Administrator and Clarissa Hadler, Finance Director
AGENDA ITEM: Purchasing Policy Review
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance☒
☐ Managed Growth
☒ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
The City’s Purchasing Policy was last reviewed in 2018. City policies are reviewed at regular intervals to ensure
alignment with internal practices, current Council goals, and state statute. In preparation for our review, we
reviewed the purchasing policies of 10 other metro cities.
ISSUE BEFORE COUNCIL:
What changes would the Council like to see to the Purchasing Policy?
PROPOSAL DETAILS/ANALYSIS:
The attached red-lined version of the City’s Purchasing Policy shows changes currently recommended by staff.
This is intended to be an initial discussion and staff will take Council feedback into further revisions.
The following are a few changes to note;
Removed processes that do not align with practices, are laid out in other policy or process documents, or
are not purchasing related, such as; cash receipting, payment vouchers, authorization forms.
Added a Quick Reference Guide to clarify the options for procurement at various purchasing amounts
and the approvals necessary.
Consolidated the Construction, Contract Services, and Purchase Contracts and the Professional Services
sections into one section.
Added a definition of the term “contract” and approval authority clarification.
Clarified which purchases are delegated to the City Administrator.
Clarified Lease language.
Added clarifying language regarding Uniform Municipal Contracting Law and aligned purchasing
thresholds with UMCL.
Added clarifying language regarding the RFP process.
RECOMMENDATION:
Discuss proposed changes and provide direction to staff.
ATTACHMENTS:
City of Lake Elmo Purchasing Policy
Purchasing Policy Examples from other MN cities
LA515\1\1093668.v1
Purchasing
Policy
__________, 2026
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Table of Contents
City of Lake Elmo Purchasing Procedures ....................................................................................................3
General Purchasing Procedures ....................................................................................................................3
Construction, Contract Services, and Purchase (Goods) Contracts ...................................................5
Authorization Thresholds and Requirements ........................................................................................5
Over $100,000 ($175,000 effective August 1, 2018) with labor - Performance Bond .........7
Awarding Contracts ............................................................................................................................................7
Best Value Procurement Alternative ..........................................................................................................7
Cooperative Purchasing Procedures ...........................................................................................................7
Change Orders ......................................................................................................................................................8
Other Bidding Requirements ..........................................................................................................................8
Purchase or Lease of Used Public Safety Equipment ...........................................................................9
Leases and Lease Purchases ...........................................................................................................................9
Real Estate ..............................................................................................................................................................9
Online Purchases .................................................................................................................................................9
Withholding Certificates ...................................................................................................................................9
Ethics and Acceptance of Gifts ....................................................................................................................10
Public Purpose Expenditures ......................................................................................................................10
Professional Service & Consultant Contracts ............................................................................................12
Disposition or Donation of Surplus Assets .................................................................................................13
Government to Government Sales .............................................................................................................14
Trade-ins ..............................................................................................................................................................14
Electronic Sales ..................................................................................................................................................14
Restrictions .........................................................................................................................................................15
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City of Lake Elmo Purchasing Procedures
Effective ______, 2026
These purchasing procedures are intended to provide a consistent manner of purchasing goods and services
Citywide.Employees should secure the best balance between quantity,quality,and price when purchasing
for the City.
General Purchasing Procedures
The City of Lake Elmo has a “decentralized”purchasing program;purchasing is the responsibility of
each Department Director or designated individual.
The Finance Department processes payments twice per month,which is the week preceding the City
Council meeting and invoices are paid by due date.Fully completed Payment Voucher forms must be
submitted by 4:30 pm on the Tuesday before the City Council packet is due.This will ensure inclusion
in the packet for which the City Council will consider at the subsequent meeting.
Payments will be made only from invoices or expense reimbursement forms.
Persons authorizing payments are responsible for verifying that goods are received,services
provided,that they are necessary,and that no duplicate payments occurred.Signature(s)are
required by authorized individual(s) in order to be processed for payment.
Persons authorizing payments are responsible for coding invoices and ensuring that correct account
codes are used.If there are questions regarding coding,contact the Finance Department for
assistance.
Contracts to which the City is a party shall be brought to the City Council for consideration and if
approved, will be signed by the Mayor and the City Clerk on behalf of the City.
Generally accepted accounting principles will be followed.For the end of each year,invoices that are
received early the next year which are for goods or services received the previous year will usually be
charged against the previous year.The year to which an invoice will be charged is based on the
financial statement/audit cut-off date and the materiality of the item.If you have any questions about
this, please contact a member of the Finance Department.
Employees will not make any purchases for personal use through the City.
Minnesota Statutes Sections 471.87 and 471.88 prohibit the purchase of goods and services
wherever a conflict of interest may exist.The City of Lake Elmo requires employees to disclose to
their immediate supervisor any personal financial interest in the selling or buying of goods or
services for the City.No purchase orders,contracts or service agreements shall be given to an
employee of the City or to a partnership or corporation of which an employee is a major
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stockholder or principal.No employee shall enter into a relationship with a vendor where the
employee's actions are,or could reasonably be viewed as,not in the best interests of the City.If
any employee becomes involved in a possible conflict of interest situation,the employee shall
disclose the nature of the possible conflict to his or her supervisor and to the City Administrator.
The City Administrator shall promptly notify the individual in writing of an approval or disapproval
of the activity.If disapproved,the employee shall remove himself or herself from the conflict of
interest situation.
Minnesota Statutes Section 12.37 gives the City the ability to declare an emergency for a limited
period of time.During such an emergency,the City is not required to use the typically mandated
procedures for purchasing and contracts.Emergency purchases require approval by the City
Administrator or Finance Director,and when necessary because of the dollar amount,formal City
Council action.An emergency purchase is defined as one where an immediate response is
required to protect the health, welfare or safety of the public or public property.
The City has a credit card program available for employees who frequently purchase items for the
City. Employees using a City credit card must adhere to the City’s Credit Card Policy.
Travel-related purchases should be made following the City’s travel guidelines in the Personnel Policy.
Employee Expense Reimbursement:
Reimbursement –Request for reimbursement for an eligible City expenditure/expense, must be made
via filling out the Employee Reimbursement Form. Appropriate documentation must be
attached. Reimbursements are paid through payroll process on the next available payroll if
submitted to Finance by the prior Thursday.
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Purchasing Guidelines &
Procurement Options
The Uniform Municipal Contracting law sets out procedures that cities must follow for contracts to sell,
purchase or rent supplies,materials,or equipment,or to construct,alter,repair or maintain real or personal
property.
Below are the procurement options depending on the estimated amount of the contract.
For purposes of this Policy, a contract is defined as a formal agreement that establishes binding long-term
obligations, conditions, and risk allocations between the City and another party. Contracts include
provisions that extend beyond routine purchasing terms—such as insurance requirements, indemnification,
liability allocation, and other legal protections that may impact the City’s financial or legal exposure over
time.
Approval Authority
City Council Approval is Required:
For any contract that includes or modifies long-term contractual conditions—such as insurance,
indemnification, or other legal risk provisions.
Administrative (Staff) Approval:
Agreements that are limited to standard purchasing terms, do not alter long-term contractual
conditions, and fall within an already approved budget or authorized spending threshold may be
executed by City staff without additional Council approval.
Quick Reference Guide
Required Approvals
Contract or
Purchase Amount
Procurement Options Director City
Admin.
City
Council
Less than $2,500 Open Market
Direct Negotiation X
$2,500 - $10,000 Open Market
Direct Negotiation w/ 2 quotations obtained
whenever possible.
X X
$10,000
but not more than
$175,000
Sealed Bids
Direct Negotiation
Cooperative Purchasing Contracts
Request for Proposals
X X X
$50,000
and greater
if being assessed
Sealed Bids per M.S. 471.345, Subd. 3
Cooperative purchasing contracts that comply with
the bidding process.
X X X
$175,000
and greater
Sealed Bids per M.S. 471.345, Subd. 3
Cooperative Purchasing Contracts that comply with
the bidding process.
X X X
$175,000
and greater
Cooperative Purchasing Contracts X X X
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for Professional
Services
RFP (not more frequent than every 5 years for long-
term professional services contracts).
Authorization Thresholds and Requirements:
Less than $500.00 – Department Director
Purchases may be obtained through open market or direct negotiations.
$500.00 to $2,500.00 – Department Director
Purchases may be obtained through open market or direct negotiation,with two quotations obtained
whenever possible. Quotations must be retained for at least one year.
$2,500.01 to $10,000.00 – City Administrator
Purchases may be obtained through open market or direct negotiation,with two quotations obtained
whenever possible. Quotations must be retained for at least one year.
$10,000.01 but not greater than $175,000 – City Council or City Administrator as Delegated
Purchases may be obtained through sealed bids,or cooperative purchasing contracts,or direct negotiation,
with two quotations obtained whenever possible.Quotations must be retained for at least one year.
Cooperative purchasing contracts should be considered for contracts over $25,000 and may be used in lieu
of sealed bids or quotes.The City Council should approve purchases in this range,except as delegated to the
City Administrator for the following routine budgeted items:
Payroll and payroll-related expenses
Insurance premiums
Routine operations (utilities, supplies, cleaning services, routine maintenance, etc.)
Increases up to an individual’s authorization limit for a previously Council-approved item,
Payments due to other units of government or payments required to be made before the next regular
meeting of the Council to avoid endangering public safety,public or private property,or interrupting
City services.
Due to the cost of preparing sealed bids,and the additional length of time required in this process,the use
of sealed bids for this threshold should only be used when deemed necessary.
Greater than $175,000, or Greater than $50,000 if Being Specially Assessed
Purchases must be obtained by sealed bids solicited by public notice as required under Minnesota Statutes
Section 471.345,subdivision 3.City staff must obtain authorization from the City Council to prepare plans
and specifications for the bids.The City Attorney must review the plans and specifications including the
contract prior to advertisement for bids.Cooperative purchasing contracts should be considered for
contracts over $25,000 and may be used in lieu of sealed bids.
Advertisement for sealed bids must be published in the City’s Official Newspaper and advertised on
QuestCDN at least ten days before the last date for submission of bids.
The published notice must contain the following:
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A description of the project or the purchase
The availability of specifications including their location (i.e.,located in the Office of the City
Clerk)
The last day for submission of bids and the place where they are due
The time and place for opening bids
A statement reserving the right of the City to reject all bids
The bids must be opened and tabulated at the time and place specified in the advertisement for bids.
Preferably,this should be completed approximately 10 business days in advance of the City Council meeting
to allow for a thorough review and tabulation of the bids, and to allow for reference checks as appropriate.
A recommendation can then be made to the City Council,and the City Council will award or deny the contract.
Bids rejected by City Council must be kept on file for 6 years and the accepted bid must be retained for 10
years after completion of the project.
As an alternative to this procurement method,the City may award a contract for construction,alteration,
repair,or maintenance work to the vendor or contractor offering the best value under a request for proposals
as described in Minnesota Statutes Section 16C.28,subdivision 1,paragraph (a),clause (2),and paragraph
(c).City staff must be trained in the “best value”procurement method in accordance with Minnesota
Statutes Section 16C.28, subdivision 1d.
Greater than $175,000 - Performance and Payment Bond
For contracts over $175,000,performance and payment bonds in amounts not less than the contract price
are required from the contractor.If change orders substantially increase the amount of the contract,the
City Council has the option to increase the required amount of the contractor’s bond.
Awarding Contracts
For contracts procured through sealed bids or multiple quotes,the City must award the contract to the lowest
responsible bidder.The bidder who submits the lowest bid or quote in dollars is not necessarily the “lowest
responsible bidder.”
Best Value Procurement Alternative
Minnesota Statute 412.311 allows the City to use a Best Value procurement alternative for contracts for
construction,building,alteration,improvement,or repair work.In that event,the contract may be awarded
to the contractor or vendor offering the “best value”under a request for proposals as described in Minnesota
Statutes Section 16C.28,subdivision 1,paragraph (a),clause (2),and paragraph (c).Please contact the City
Administrator or Finance Director if you wish to consider using the Best Value Procurement Alternative as
training is required prior to initiating procurement.
Cooperative Purchasing Procedures
Cooperative purchasing contracts provide an opportunity for the City to purchase goods and services at
reduced costs.Employees do not need to obtain quotes or bids if a purchase is made through a national
municipal association purchasing alliance or a cooperative created by a joint powers agreement (of which
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the City is a member)that purchases items from more than one source based on competitive bids or
quotations that complies with state statute.
The following is a list of some of the larger purchasing cooperatives of which the City is a member:
1.Cooperative Purchasing Ventures (CPV)
Minnesota Statutes Section 471.345,Subd.15 requires cities to consider the State’s Cooperative
Purchasing Venture (CPV)for contracts estimated to exceed $25,000.The City of Lake Elmo participates
in the State of Minnesota Cooperative Purchasing Venture (CPV).This enables the City to buy goods
and services under the terms of contracts already negotiated by the State of Minnesota.
Information for this cooperative can be found on the State of Minnesota’s Materials Management
Division website: http://www.mmd.admin.state.mn.us/cpv2.htm
The website can direct employees to the releases and listings of the products/services that can be
purchased using the State Cooperative Purchasing Venture.If it is determined that a product/service is
on a State Cooperative Purchasing Venture,vendors should be told that the purchase will be made using
that contract.When completing the purchasing paperwork,note that the purchase is per “state
contract” and indicate the contract number.
Vendors will often contend that the City can purchase from them without bidding because they are on
the “state contract”or they will sell at the state contract price.Beware of these approaches.Verify
that both the vendor and the specific product/service is listed on the state contract.It is likely that not
all of a vendor’s products/services have been selected to be on the state contract.If a vendor is not on
the state contract,but will match the state contract price,this action does not exempt the City from
following the competitive bidding laws.
4.Minnesota State Fire Chiefs Association – Fire Rescue Group Purchasing
The Fire Rescue Group Purchasing is a fire services purchasing program open to all Cities.
5. Cooperative Purchasing Programs
At times, the City may participate in the following purchasing programs;
OMNIA Partners - Omniapartners.com
Sourewell - Sourcewell-mn.gov
HGAC – hgacbuy.org
6. Joint Powers Member
Any other joint powers purchasing entity of which the City is a member that provides for purchases in
accordance with Minnesota Statutes Section 471.345,subdivision 15(b)is also exempt from the quote
or bid process.
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In all items outlined pertaining to cooperatives,please contact the City Administrator or Finance Director if
you have any questions.
Change Orders
Change orders may occur due to City driven changes,errors and omissions,field directives,
unforeseen/hidden conditions,regulatory requirements or changes that are contractor driven.Changes that
need to be made during construction often need to be addressed and approved in a timely manner in order
to keep the project on schedule.
1)For a change order less than $100,000,which does not result in exceeding the overall project budget,
the City Administrator may approve these.
2)At the discretion of the City Administrator,for a change order less than $100,000,but still within the
scope of the overall project budget,it may be presented to the City Council for consideration and
approval.
3)For any change order that results in exceeding the overall project budget, and/or exceeds $100,000
must be approved by the City Council.
Other Bidding Requirements
The City must not avoid competitive bidding requirements by splitting a contract into several contracts,
each of which is below the minimum amount requiring bids.
Bid specifications may not be written so as to exclude all but one type or kind of supplies or equipment
unless it is for public safety equipment that is clearly and legitimately limited to a single source of supply.
The City may not accept a bid that includes a number of items when the advertisement called for separate
bids for each item.
The City must re-bid the contract if the City makes a material change in the specifications of the contract.
Minnesota Statutes Chapter 429 (local improvement code)applies to all public improvement contracts
(i.e., sewer, water and streets) being financed with special assessments.
Purchase or Lease of Used Public Safety Equipment
In 2011,cities were granted authority to lease or purchase used public safety equipment (“vehicles and
specialized equipment used by a fire department …in firefighting,ambulance and emergency medical
treatment services,rescue,and hazardous materials response”)without competitively bidding in certain
specified circumstances.Competitive bidding or proposals are not required,“if the equipment is clearly and
legitimately limited to a single source of supply,and the contract price may be best established by direct
negotiation.” See Minnesota Statutes Section 471.3455.
Equipment Leases and Lease-Purchases
All lease agreements require review by the Finance Director and legal counsel and City Council approval is
required for all leases. For the leasing of equipment,Department Directors must obtain at least two quotes
to ensure the best financing rates.Staff will conduct a leave versus buy analysis to determine the most
cost-effective method.Lease performance bonds are sometimes prudent for lease-purchases,and as such,
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the City Administrator and Finance Director will assist in determining if a lease performance bond should be
required.
Real Estate
The lease, purchase, or sale of real property is generally not subject to competitive bidding.
Online Purchases
Employees must only purchase from vendors that use secure services for e-commerce. The City is required
to pay sales tax for out-of-state purchases.
Withholding Certificates
Before the City makes a final payment to a contractor under a contract requiring payment of wages to
employees,it must make sure the contractor and any subcontractors have complied with withholding tax
laws.Contractors and subcontractors must show compliance by submitting a withholding affidavit to the
MN Department of Revenue.This can be done electronically or by mailing a completed Form IC134,
“Withholding Affidavit for Contractors.”If a contractor or subcontractor has withheld taxes as required,the
Department of Revenue will return an electronic confirmation or sign and return the Form IC134,certifying
compliance. The City must receive this certification of compliance before a final payment will be issued.
Covered contracts are only those under which a contractor undertakes to supply labor or a combination of
labor and materials for specific construction,repairs,rehabilitation or improvements.It does not apply to
contractors for maintenance services or dealers,merchants and suppliers who supply materials only.The
Department of Revenue requires the Form IC134 only be submitted in connection with contractors on
construction projects.Others are not required to submit the form so this paragraph is only applicable to
construction contracts.
Ethics and Acceptance of Gifts
Employees and council members authorized to make a sale,lease,or contract in their official capacity must
not have a personal financial interest in that sale,lease,or contract,or personally benefit financially from it.
(See Minn. Stat. § 471.87)
For non-business related purchases,employees may only take advantage of special pricing offered to
employees of the City if the same pricing is offered to all government employees state or
countrywide. However,special pricing offered to the City by vendors may not be accepted by employees in
a position to make purchasing decisions or recommendations within that same category of goods or services.
Public Purpose Expenditures
City employees are obligated to conserve and protect City resources for the benefit of public interest. As
good stewards of public funds, City employees must only use City funds for public purpose expenditures.
The expenditure of City funds on meals and refreshments for City employees,officials,and volunteers is only
authorized by the City Council for certain purposes.These purposes should be conducive to the
accomplishment of employees or officials’duties and responsibilities while conducting City business and
therefore provide a public benefit and have a public purpose.
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As detailed below,the purchase of meals and refreshments,using City funds is authorized in the following
circumstances:
Those provided immediately before or in conjunction with meetings of the Council,committees or
subgroups that are held over a meal time hour.
City business meetings at which those in attendance involve non-City employees.
When a breakfast,lunch or dinner meeting is conducted for official City business when it is the only
practical time to meet and when it involves non-City employee participants.
In connection with a conference,workshop,seminar or meeting which the employee has been
authorized to attend.
Department-sponsored meetings,conferences or workshops where invited participants include
non-City employees.
An organization-wide or department-wide annual, quarterly or monthly staff meeting.
At regularly scheduled meetings of the City Administrator and key staff.
Meals for staff involved in election related duties when the performance of their duties prohibits staff
from leaving the building.
At the discretion of the City Administrator.
If you are unsure whether an item is a public purpose expenditure,please contact the City Administrator or
Finance Director.
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State of Minnesota Bid, Quote, and Contract Requirements
The Uniform Municipal Contracting Law, Minnesota Statutes Section 471.345 sets out procedures that
cities must follow for contracts to sell, purchase, or rent supplies, materials, or equipment, or to construct,
alter, repair, or maintain real or personal property. The estimated amount of the contract dictates
which procedures apply. Of course, estimates should be reasonable.
Contracts estimated to have a value of over $175,000 must be made by sealed bids, solicited by public
notice, and awarded to the lowest responsible bidder. Bids should be retained for the period specified in
the City’s records retention schedule.
The requirement that the successful bidder be “responsible” protects cities from having to choose
unqualified or unscrupulous low bidders. It allows a city council to consider factors such as the
bidder’s financial responsibility, integrity, skill and ability, and the likelihood that the bidder will do
satisfactory work. A city can even include evaluation criteria for “responsible” bidders in the bid
specifications.
Request for Proposal (RFP)
State statue does not require advertisement of bids or sealed bids for professional services such as those of
engineers,lawyers,architects,accountants,and other services requiring technical,scientific,or professional
training.It is recommended that proposals be obtained through a request for proposal (RFP)process when
the contract is estimated to exceed $175,000.
The City recommends following an RFP process when soliciting professional consulting services greater than
$175,000.
The City Council must approve the standard professional services agreement.
Long term professional services contracts that rely on specialized expertise,institutional knowledge,and
continuity of service may be procured through a formal RFP or qualification based selection process not more
frequent than every five years.
Recommended sections to include in an RFP:
Background and scope of project.
Description of the scope of professional services to be provided.
Schedule for the delivery of services.
Contract terms.Include and reference as an attachment the City’s “Standard Professional Services
Agreement”, except when using the City’s consulting pool.
The last day for submission of proposals and the place where they are due.
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If necessary,include a requirement for attendance at a pre-proposal meeting to answer vendor questions
regarding the RFP.This provides fairness to all participants when questions are answered with all
participants present. Request that all questions be submitted in advance by a certain date.
Proposal evaluation and selection criteria.
Format required for submitted proposals to provide for consistent submittals.
Profile questionnaire to obtain general information about the vendor.
A statement reserving the right of the City to reject all proposals.
At the discretion of the City Administrator,the RFP may be sent to the City attorney for review before it is
sent to selected vendors. RFPs should be sent to a reasonable/manageable number of vendors.
While it is not required per se,you may solicit proposals by advertising on the LMC’s website,city website,
or local newspaper.
After the submittal deadline,review proposals by using a rating sheet and rate each proposal based on the
specifications and general information.Follow up with reference checks as appropriate.Select a vendor
and make a recommendation to the City Council.
Standard Professional Services Agreement
The City’s “Standard Professional Services Agreement”(contract)should be used for professional service
contracts except when using the City’s consulting pool.
The City’s consulting pool list is maintained by the Engineering department.Vendors included in the
consulting pool have continuing services agreements in place with the city.When a project is awarded to a
vendor listed in the consulting pool,a task order is executed for the specific project scope,fee and budget
with the general terms and conditions of the standard professional service agreement on file with the city.
The Standard Professional Services Agreement outlines consultant obligations including insurance and
liability coverage requirements, audit disclosure, subcontractors, and termination processes.
Disposition or Donation of Surplus Assets
The City Administrator may recommend to the Council that certain property owned by the City is no longer
needed for a municipal purpose and should be sold.
There are three aspects to any disposal of a City asset:
1.Disposal Approval
The City Council must approve the disposal of all property that exceeds an estimated value of greater
than $100.00.
2.Terms of Sale Approval
The sale itself must be approved by the City Council.
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3.Proper Municipal Sale Contract
Just as with purchasing,making a sale is considered entering into a contract.After the Council has
declared the property as surplus,and approved its disposal,the City Administrator,or designee,is
authorized to dispose of the property using one of the following methods:
Assets under $25,000
If the value of the surplus property is estimated to be $25,000 or less,the City Administrator,or designee,
may sell it either in the open market,by auction,or by obtaining two market comparisons,so far as
practical.If the surplus property is sold based upon comparisons,it/they shall be kept on file for a period
of at least one year after receipt.
Assets between $25,000 - $175,000
If the value of the surplus property is estimated to exceed $25,000 but not to exceed $175,000,the City
Administrator,or designee,may sell the property upon sealed bids or by direct negotiation,by obtaining
two or more market comparisons for the sale,when possible,or by auction,subject to a minimum of 2
bidders or meeting an auction reserve as determined by City Council All comparisons obtained shall be
kept on file for a period of at least one year after their receipt.
Assets over $175,000
If the value of the surplus property is estimated to exceed $175,000 ),the City Administrator,or designee,
shall solicit sealed bids by public notice in the manner and subject to the requirements of the law
governing contracts by the City.
Government to Government Sales
The City may transfer real and personal property to another governmental entity for nominal or no
consideration and without following the process set out under “Proper Municipal Sale Contract”(Item #3
above).Sealed bids or quotes are not required.Council approval of the disposal (Item #1 above)and of the
terms of the disposal (Item #2 above)is always required.The Council may approve both the disposal and
disposal terms in one action.
Trade-ins
The City Council must approve the disposal of equipment via trade-in to utilize toward the purchase of new
equipment,just as it approves a regular disposal.This approval may be done as part of the approval of the
purchase of new equipment.
Electronic Sales
Minn.Stat.471.345,subd.17 states that “a city may contract to sell supplies,materials,and equipment which
is surplus,obsolete,or used,using an electronic selling process in which purchasers compete to purchase
the items at the highest purchase price in an open and interactive environment.”
Donations
The City Council approved a Policy for Donation of Surplus Equipment to a Nonprofit Organization on
February 7,2018,and as such,said policy will govern the rules for donations for surplus equipment to a
nonprofit organization.
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Restrictions
No employee of the City who is a member of the administrative staff,department head,a member of the
Council,or an advisor serving the City in a professional capacity may be a purchaser of property sold under
this Section.Other City employees may be purchasers if they are not directly involved in the sale,if they are
the highest responsible bidder, and if at least one week's published or posted notice of sale is given.
Versions:
May 15, 2018
Updated _____, 2026
City Council Adopted
Mmmmm dd, yyyyOctober 26, 2020
PURCHASING POLICY
T A B L E O F C O N T E N T S
Introduction ..................................................................................................................... 1
Procedures for Purchases Under $25,000 ...................................................................... 3
Procedures for Purchases From $25,000 to $175,000 .................................................... 4
Procedures for Purchases Over $175,000 ...................................................................... 5
Cooperative Purchasing .................................................................................................. 6
Environmental Purchasing .............................................................................................. 7
Prompt Payment of City Bills ........................................................................................... 8
Electronic Funds Transfers ............................................................................................. 9
Final Payments on City Construction Contracts ............................................................ 10
Purchasing - Quick Reference Guide ............................................................................ 11
PAGE 1
INTRODUCTION
The City’s policy is to purchase goods and services at the most cost effective and competitive
rates, yielding the desired service, turnaround, and value for the dollar. This practice must ensure
the best utilization of funds, vendor selection, and adherence to ethical business practices
including integrity, honesty, and avoidance of conflict of interest.
The purchasing procedures are important because they:
1. Ensure purchases conform to legal requirements;
2. Prevent expenditures from exceeding the budget;
3. Provide proper documentation for purchases;
4. Prevent payment for items not received;
5. Ensure accurate accounting;
6. Provide payment of all bills within 35 days of receipt; and
7. Prevent duplicate payments on the same invoice.
All purchasing by local government units is regulated by State law. Because of these laws and
because of the unique nature of budget and tax levy procedures for funding City government, all
City employees must conform to the purchasing policies and procedures designated. The
Finance Department will review and approve all purchases and employee reimbursements and
will ensure that all purchases and payments are legal, properly coded, and well documented.
If the purchase is over $7,500$10,000, Council approval is required before the purchase can be
made. However, Council approval is not required on purchases over $7,500$10,000 if they are
for payroll and payroll related expenses, employee expense reimbursements, insurance
premiums, routine operations (utilities, supplies, cleaning services, etc.), increases up to
an individual’s authorization limit for a previously Council approved item due to delivery
charges or unexpected increases in cost, payments due to other units of government or
required to be made before the next regular meeting of the Council to avoid endangering
public safety, damaging public or private property, or interrupting City services.
The City follows the rules pursuant to Minnesota State Statute 471.345. The current statute should
always be referenced or referred to for the most recent revisions to the law.
Items under $25,000 (materials, supplies, and equipment for day-to-day use) must be purchased
at the best price available subject to appropriate guidelines and procedures. If the contract is
made upon quotation it shall be based, so far as practicable, on at least two quotations which
shall be kept on file for a period of at least one year after their receipt.
Purchases between $25,000 and $175,000$49,999 may be made either upon sealed bids or by
direct negotiation, by obtaining two or more quotations for the purchase or sale when possible,
and without advertising for bids or otherwise complying with the requirements of competitive
bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt
thereof.
Purchases between $50,000 and $174,999 may be made either upon sealed bids or by direct
negotiation, by obtaining three or more quotations for the purchase or sale when possible, and
without advertising for bids or otherwise complying with the requirements of competitive bidding.
All quotations obtained shall be kept on file for a period of at least one year after receipt thereof.
PAGE 2
All purchases of merchandise, materials, equipment, and repair or maintenance services
exceeding of $175,000 or more must be purchased on a formal bid basis and meet all procedural
requirements. The Council must approve all bid awards.
It is not the policy of the City to accept the lowest bidding vendor.The City reserves the right to
reject any or all bids if it determines such rejection to be in the best interest of the City. The
acceptance of the bid may be based on a number of factors, including: cost, demonstrated
working experience in the specific area, past experience with the City, overall quality of work, and
in emergency situations.
Exception to this policy may be made in order to maintain continuity of services, their in-depth
knowledge of the City’s operations or systems, the uniqueness of the services offered, and in
emergency situations. Examples include, but not limited to: Auditing Services, Financial
Services, Engineering Services, Legal Services, Maintenance Contracts, Building Maintenance,
Architectural Services, and other similar services. Exception can also be made if the project
requires unique skills or if bids cannot be obtained due to lack of interest from the vendors. It is
the responsibility of the department head to document the rationale for the vendor selection,
particularly when the lowest bid is not accepted and/or if a bid was only received or obtained from
one vendor.
PAGE 3
PROCEDURES FOR PURCHASES UNDER $25,000
Generally, these purchases will be of materials, supplies, and equipment for day-to-day use.
Purchases of food including meals, snacks and beverages for city employees is not allowed for
department meetings or in-house training sessions unless there is a speaker or trainer who is not
a city employee. Excluded from this limitation are purchases of food for (a) City Council meetings
held at meal time, (b) employee recognition events such as a city employee picnic/social
event/holiday event, (c) training of election judges or (d) as approved in advance by the City
Administrator.
Quotations (see Quick Reference Guide on page 11) should be obtained from at least two
possible vendors, as practicable, which shall be kept on file for a period of at least one year after
their receipt.
<
$7,500$10,000
The purchase is to be at the best possible price. These purchases should
be processed on a VISA purchasing card whenever possible. See table
below for authorization limits.
$7,500$10,000
to
$24,999
Prior to the purchase, approval must be obtained from the City Council
unless the project, in aggregate, was previously approved by the City
Council. A minimum of two written quotations should be obtained
whenever possible.
Authorization Limits Budgeted Unbudgeted
City Administrator Up to $7,500 Up to $5,000
Finance Director Up to $5,000 Up to $2,500
Public Works Director Up to $2,500 Up to $1,000
Comm Dev Manager/City Planner Up to $2,500 Up to $1,000
Authorization Limits
City Administrator Up to $10,000
Department Directors Up to $5,000
The department director, along with the concurrence of the Finance Director, may delegate
signature authority to another individual in their department for a set dollar amount, which should
be significantly lower than their own sighing authority. This authority must be in writing and be
kept in the Finance Department.
PAGE 4
PROCEDURES FOR PURCHASES FROM $25,000 TO $175,000
1. Obtain quotations by supplying prospective vendors with a description or specifications of the
merchandise, materials, equipment, or services to be purchased. A minimum of two (2) written
quotations, whenever possible, shall be supplied for such purchasespurchases less than
$50,000. A minimum of three (3) written quotations, whenever possible, shall be supplied for
purchases of $50,000 or more. If two or three quotations cannot be obtained, an explanation
must be included as to the reason for only one bid.
2. If the purchase is over $7,500$10,000 Council approval is required before the purchase can
be made. To obtain Council approval, an agenda report must be prepared and submitted to
the City Council.
PAGE 5
PROCEDURES FOR PURCHASES OVER $175,000
All merchandise, materials, or equipment purchases exceeding $175,000 (except emergency
purchases and items purchased on a state contract or through cooperative purchasing) must be
purchased on a formal bid basis. The following procedural requirements must be met before an
item may be purchased:
1. It is the responsibility of the requesting department to prepare specifications. After
specifications have been prepared, they shall be submitted to the City Administrator for
approval. No advertisement for bids shall be published until specifications are approved by
the City Administrator.
2. Advertisement in the official local newspaper (and other publications if appropriate) at least
ten (10) days in advance of bid opening is required. The City may use its web site or a
recognized industry trade journal as an alternative method to disseminate solicitations of bids,
requests for information, and requests for proposals if certain steps are followed to designate
the method (MN Stat. 331A.03, subd. 3).
3. Time must be allowed between the date of bid opening and bid award to permit examination
and tabulation of bids and submission of recommendation to the City Administrator and
Council.
4. Council award of bid. The Council may wish to table an award on a difficult matter, thereby
delaying the purchase. Therefore, careful consideration must be given to the complexity of an
item and thorough information must be provided.
PAGE 6
COOPERATIVE PURCHASING
Per MN Statute 471.345, subd. 15, municipalities may contract for the purchase of supplies,
materials, or equipment by utilizing contracts that are available through the state’s cooperative
purchasing venture authorized by section 16C.11.
If a municipality does not utilize the state’s cooperative purchasing venture, a municipality may
contract for the purchase of supplies, materials, or equipment without regard to the competitive
bidding requirements if the purchase is through a national municipal association’s purchasing
alliance or cooperative created by a joint powers agreement that purchases items from more than
one source on the basis of competitive bids or competitive quotations.
Cooperative purchasing is intended to save government agencies time and money when
purchasing common products. Of course, there are no guaranteed savings, but cooperative
buying power is a time-tested method of savings.
Cooperative purchasing is currently allowed through the following sources:
State of Minnesota’s Cooperative Purchasing Venture (CPV) Program
OMNIA Partners, Public Sector
Houston-Galveston Area Council (HGACBuy)
BuyBoard National Purchasing Cooperative
Sourcewell
National Cooperative Purchasing Alliance (NCPA)
The Interlocal Purchasing System (TIPS)
PAGE 7
ENVIRONMENTAL PURCHASING
The City supports and recognizes sustainable practices focusing on cost savings and energy use
reductions, including those pertaining to purchasing. Therefore, the City shall to the extent
possible and practicable purchase only EnergyStar and EPEAT certified equipment and
appliances, purchase U. S. EPA WaterSense certified products when possible and practicable
and, whenever possible, the City shall only purchase paper containing at least 30% postconsumer
recycled content.
The requirements for the SCORE grant, GreenStep Cities and Minnesota State Law are noted
below.
SCORE Language: Implement a “green” purchasing procurement policy for city functions and
facilities to use reusable, recyclable, or compostable packaging.
GreenStep Cities Language: Best Practice 15.1- Sustainable Purchasing- Adopt a sustainable
purchasing policy or administrative guidelines/practices directing that the city purchase at least:
a) EnergyStar certified equipment and appliances and b) paper containing at least 30% post-
consumer recycled content.
Minnesota State Law: 16C.073- Subd. 2.Purchases. (a) Whenever practicable, a public entity
shall: (2) purchase recycled content copy paper with at least 30 percent postconsumer material
by weight and purchase printing and office paper with at least ten percent postconsumer material
by weight.
Subd. 3. Public entity purchasing. (a) Notwithstanding section 365.37, 375.21, 412.311,
or 473.705, a public entity may purchase recycled materials when the price of the recycled
materials does not exceed the price of nonrecycled materials by more than ten percent.
PAGE 8
PROMPT PAYMENT OF CITY BILLS
State law required municipalities to pay obligations with a standard payment period except where
good faith disputes exist. A city whose council has at least one regularly scheduled meeting per
month must pay bills within 35 days of receipt. The date of receipt is defined as the completed
delivery of the goods or services or the satisfactory installation or assembly, or the receipt of the
invoice for the delivery of goods, whichever is later.
Cities have the responsibility to notify vendors of invoice errors within 10 days of receipt. The
statute also requires cities to calculate and pay interest of 1½ percent per month on bills not paid
within the standard payment period. State law specifies $10 as the minimum monthly interest
penalty payment for the unpaid balance of any one overdue bill or $100 or more. For unpaid
balances less than $100, the city shall calculate and pay the actual interest penalty due the
vendor.
In cases of delayed payments due to good faith disputes with vendors, no interest penalties
accrue. Where such delayed payments are not in good faith, the vendor may recover costs and
attorneys' fees. Statute applies to all purchases of goods, leases and rents, and contracts for
services, construction, repair and remodeling entered into on or after January 1, 1986. Purchases
or contracts for service with a public utility or telephone company are not subject to the
requirements of this statute. (Statute No. 471.425)
All invoices are required to be coded and signed by the department head, or authorized delegate,
before forwarding them to the Finance Department for processing. Finance will process payments
on a weekly basis. Payments that do not require Council authorization will be issued on Fridays.
Payments that require Council action will be issued after the approval. A complete list of all paid
and unpaid claims will be presented at the regular Council meeting under the consent agenda
items.
PAGE 9
ELECTRONIC FUNDS TRANSFERS
State law (471.38 and 471.381) requires local units of government to adopt certain policies and
procedures before electronic funds transfers are made.
To pay vendor claims, many local government entities may use electronic funds transfers instead
of checks. Electronic funds transfers may also be used to purchase and sell investments.
Minnesota statutes state that a local government may make an electronic funds transfer for the
following:
1. A claim for payment from an imprest payroll bank account or investment of excess money;
2. For a payment of tax or aid anticipation certificates;
3. For a payment of contributions to pension or retirement fund;
4. For vendor payments; and
5. For payment of bond principal, bond interest and fiscal agent service charges.
The City of Arden Hills will make payments via electronic funds if the following policy controls are
met:
1. The governing body shall annually delegate the authority to make electronic funds
transfers to a designated business administrator or chief financial officer or the officer’s
designee;
2. The disbursing bank shall keep on file a certified copy of the delegation of authority;
3. The initiator of the electronic transfer shall be identified;
4. The initiator shall document the request and obtain approval from the designated business
administrator, or chief financial officer or the officer’s designee, before initiating the
transfer;
5. Written confirmation of the transaction shall be made within one business day after the
transaction to support the transaction; and
6. A list with all transactions made by electronic funds transfer shall be submitted to the
governing body at its next regular meeting.
The Finance Director shall be delegated authority to make electronic funds transfers. The Finance
Director may delegate certain duties to appropriate staff, but shall remain responsible for the
operation of the transfer program.
PAGE 10
FINAL PAYMENTS ON CITY CONSTRUCTION CONTRACTS
The State of Minnesota requires the filing of Form IC-134 prior to the final payment of any contract
involving employees under code section 270C.66 CONTRACTS WITH STATE; WITHHOLDING.
"No department of the state of Minnesota, nor any political or governmental subdivision of
the state shall make final settlement with any contractor under a contract requiring the
employment of employees for wages by said contractor and by subcontractors until
satisfactory showing is made that said contractor or subcontractor has complied with the
provisions of section 290.92. A certificate by the commissioner shall satisfy this requirement
with respect to the contractor or subcontractor."
Before final payment can be made on any contract which involves the payment of wages by a
contractor of the city to any employee, or subcontractors with employees that performed work on
a job for the city, the contractor must furnish to the city a copy of Form IC-134 that has been
certified by the Minnesota Department of Revenue. These forms should be kept on file in your
department with all other contract documents for possible review by the auditors. Contractors and
subcontractors should obtain the IC-134 forms from the State of Minnesota.
Subcontractors or sole contractors must provide to the prime contractor their certified IC-134 form
when their portion of work is completed. The prime contractor then submits to the City all certified
IC-134 forms when requesting their final payment from the city.
PAGE 11
PURCHASING – QUICK REFERENCE GUIDE
This section is designed as a quick reference for the purchasing procedures. The following
outlines the step by step procedures for purchases.
Determine the need for commodities and services.
Research the cost of purchase.
Check the budget to determine that there is sufficient money available for the purchase.
If there is not sufficient money available for the purchase, see the Finance Director for the
drafting of a possible Agenda Report.
Determine into which category the purchase falls.
A minimum of two verbal quotations must be obtained whenever possible on purchases less
than $50,000. A minimum of three quotations must be obtained whenever possible on
purchases of $50,000 or more.
VALUE REQUIRED,
AS PRACTICABLE
CITY MANAGER OR HIS/HER
DESIGNEE APPROVAL
REQUIRED
COUNCIL
APPROVAL
REQUIRED
Reimb. to
Employees
No Quotations
Necessary NO NO
$0 - $7,499 Two or More Verbal
Quotations YES – refer to purchase limits NO
$7,500 - $24,999 Two or More Written
Quotations YES YES
$25,000 - $174,999 Two or More Written
Quotations YES YES
$175,000 or more Advertise for Bids YES YES
VALUE REQUIRED,
AS PRACTICABLE
APPROVALS
NEEDED
Reimb. to Employees No Quotations Necessary Department
$0 - $4,999 Two or More Verbal
Quotations Department
$5,000 - $9,999 Two or More Verbal
Quotations
Department
Finance
City Administrator
$10,000 - $49,999 Two or More Written
Quotations
Department
Finance
City Administrator
City Council
$50,000 - $174,999 Three or More Written
Quotations
Department
Finance
City Administrator
City Council
$175,000 or more Advertise for Bids
Department
Finance
City Administrator
City Council
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BROOKLYN PARK PURCHASING MANUAL
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3 | Page
Table of Contents
Purchasing Policy ................................................................................................................................ 7
Purpose ...................................................................................................................................................... 7
Policy .......................................................................................................................................................... 7
Responsibility ......................................................................................................................................... 7
Ethics/ Gifts & Gratuities .................................................................................................................... 7
Conflicts of Interest .............................................................................................................................. 8
Compliance .............................................................................................................................................. 8
Procedures ............................................................................................................................................... 8
Public Purpose Expenditures Policy ............................................................................................ 9
Purpose ...................................................................................................................................................... 9
Responsibility ......................................................................................................................................... 9
Policy .......................................................................................................................................................... 9
Documentation ..................................................................................................................................... 12
Special Requests ................................................................................................................................. 12
Periodic Review .................................................................................................................................... 12
Budget Controls .................................................................................................................................. 13
Unbudgeted Expenditures ............................................................................................................... 13
Purchasing Guidelines & Information ....................................................................................... 14
General Guidelines ............................................................................................................................. 14
Minority (People of Color) & Women-Owned Business Development .......................... 14
Purchasing Payment Procedures ................................................................................................. 16
Governing/ Purchasing Authority ................................................................................................. 16
Approvals ................................................................................................................................................ 17
1099 Information .................................................................................................................................. 17
Petty Cash Vouchers .......................................................................................................................... 17
Internal Payments ................................................................................................................................ 17
Sales Tax ................................................................................................................................................. 18
Professional Service & Consultant Contracts ....................................................................... 19
Purpose .................................................................................................................................................... 19
4 | Page
Policy ........................................................................................................................................................ 19
Procedures ............................................................................................................................................. 19
Statement of Work: ............................................................................................................................. 20
Request for Proposal (RFP) ............................................................................................................ 21
Non-applicability .................................................................................................................................. 21
Purchasing Thresholds ..................................................................................................................... 22
Alternative to Publishing of Bids and Requests for Proposals (RFPs) ........................ 23
Exceptions to Competitive Bidding ............................................................................................. 23
Construction and Other Contracts .............................................................................................. 24
Original Contract.................................................................................................................................. 24
Contract amendments ....................................................................................................................... 24
Contract on Open Market ................................................................................................................. 24
Contracts requiring quotes ............................................................................................................. 24
Contracts requiring Bids .................................................................................................................. 25
Sole Source Purchases ..................................................................................................................... 25
Emergency Management .................................................................................................................. 26
Withholding Certificates (IC134) ................................................................................................... 26
Contract Change Orders ................................................................................................................... 26
Retainage ................................................................................................................................................ 27
Prompt Payment to Subcontractors ............................................................................................ 27
Performance and Payment Bonds (Contractor’s Bond) ..................................................... 27
Provisions Included in all Contracts (Procurement Standards) ...................................... 27
Quick Reference Chart - Procurement Methods .................................................................... 30
Purchasing Thresholds ..................................................................................................................... 31
Solicitation ............................................................................................................................................. 32
Policy ........................................................................................................................................................ 32
Notice of Solicitation of Bids .......................................................................................................... 32
Government Purchasing Organizations .................................................................................... 32
Federal purchases ............................................................................................................................... 34
Evaluation of Proposals................................................................................................................... 34
General ..................................................................................................................................................... 34
Selection Team ..................................................................................................................................... 34
5 | Page
Awarding Contracts ............................................................................................................................ 35
“Best Value” Procurement Alternative ............................................................................................... 35
Capital Purchases .............................................................................................................................. 36
Fixed Asset (Capital Outlay) ........................................................................................................... 36
Real Estate/ Land ................................................................................................................................. 36
Purchase of city vehicles ................................................................................................................. 36
Leases and Lease Purchases ......................................................................................................... 36
Purchase or Lease of Used Public Safety Equipment ......................................................... 36
Disposal of Equipment ..................................................................................................................... 37
Introduction ............................................................................................................................................ 37
Definitions ............................................................................................................................................... 37
Disposition of City Assets ............................................................................................................... 37
Procedures ............................................................................................................................................. 37
Permitted Methods of Disposition ................................................................................................ 38
Sale at City Auction ............................................................................................................................ 39
Vehicle Auction .................................................................................................................................... 39
Electronic Bidding ............................................................................................................................... 40
Trade-ins ................................................................................................................................................. 40
Government to Government Sales ............................................................................................... 40
Approval Authority .............................................................................................................................. 42
Donation Policy ................................................................................................................................... 43
Scope ........................................................................................................................................................ 43
Procedure................................................................................................................................................ 43
Authority .................................................................................................................................................. 43
Prioritization of donations ............................................................................................................... 43
Travel Policy ......................................................................................................................................... 44
Mileage Reimbursement Policy .................................................................................................... 52
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Purchasing Policy
Purpose
All disbursements of the City are to be carried out by the City Manager with proper approval of
the City Council in adherence to the City Charter and Minnesota State Statutes. Minnesota
Statutes §471.345 sets forth the law regulating the sale or purchase of supplies, materials,
equipment or the rental thereof, or the construction, alteration, repair or maintenance of real
or personal property in Minnesota cities and the City of Brooklyn Park.
The City of Brooklyn Park has established this policy to maximize the purchasing power and
value of public funds and ensure the purchasing process is conducted in an ethical, fair, and
open manner. The guidelines in this Purchasing Manual are to promote consistency, efficiency,
effectiveness, equity, and fairness in public purchasing.
Disbursements of public funds are required to be for a “public purpose” under the Minnesota
Constitution, which generally mean that the activity will benefit the community, and/or the activity
is directly related to functions of government, and/or the activity does not have as its primary
objective the benefit of a private interest. Additionally, this policy is to meet a public purpose, to
establish internal controls, to maintain the appropriate documentation, to ensure the best value
for the public money, and to assign purchasing responsibility and authority to the level consistent
with good business practice and sound financial management policy to the extent possible.
Policy
To ensure that the goods and services required by the City are obtained using established
procedures that comply with all legal requirements for public purpose expenditures while
promoting fair and open competition to ensure public confidence in the procurement process,
ensure fair and equitable treatment of vendors who transact business with the City, and provide
safeguards for the maintenance of a procurement system of quality and integrity.
Responsibility
The City Manager is the chief purchasing agent for the City. Responsibility for administering
established Purchasing Policies and Procedures has been delegated to the Finance Department.
Department heads are responsible for monitoring the purchasing that occurs within their
departments. The city follows a decentralized purchasing process.
Ethics/ Gifts & Gratuities
It is the policy of the City that all purchases be conducted in a manner that:
a.Fosters public confidence in the integrity of the City's procurement system
b.Provides open and free competition among prospective suppliers of professional and
technical services.
c.All employees and agents of the City shall comply with the ethical standards set forth in
Minnesota Statutes §471.895 which prohibits receiving of gifts except where these are
included as a part of the cost of a product, good, or service provided, such as a meal during
the course of a conference.
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Conflicts of Interest
Minnesota State Statutes §471.87 and §471.88 prohibit the purchase of goods and services
wherever a conflict of interest may exist. City of Brooklyn Park Personnel Rules require
employees to disclose to their immediate supervisor any personal financial interest in the selling
or buying of goods or services for the City of Brooklyn Park. No purchase orders, contracts or
service agreements shall be given to an employee of the City or to a partnership or corporation
of which an employee is a major stockholder or principal. No employee shall enter into the
relationship with a vendor where the employee's actions are, or could reasonably be viewed as,
not in the best interests of the City. If any employee becomes involved in a possible conflict
situation, the employee shall disclose the nature of the possible conflict to his or her supervisor
and to the City Manager. The City Manager shall promptly notify the individual in writing of an
approval or disapproval of the activity. If disapproved, the employee shall remove himself or
herself from the conflict situation. Disciplinary actions will be applied for violations of such
standards by officers, employees, or agents of Brooklyn Park.
Compliance
No agent or employee shall have the authority to bind the City to any contract or procurement
except as provided by the City Charter (Section 7.07). Any procurement transaction made on behalf
of the City which is not in compliance with established policies and procedures shall be deemed
unauthorized. Any person making an unauthorized purchase may be liable for payment, restitution
and/or further disciplinary action. Any obligation incurred by any City employee for any purpose not
authorized in the budget or for any amount in excess of the amount authorized is considered a
personal obligation of the person incurring the expenditure.
Procedures
Specific procurement requirements are addressed in the Purchasing Procedures and guidelines
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Public Purpose Expenditures Policy
Purpose
The City Council (Council) recognizes that public funds may only be spent if the expenditure meets
a public purpose and the expenditure relates to the governmental purpose for which the City of
Brooklyn Park (City) was created.
The meaning of “public purpose” is constantly evolving. The Minnesota Supreme Court has
followed a broad approach and has generally concluded that “public purpose” means an activity
that meets ALL the following standards:
The activity will primarily benefit the community as a body.
The activity is directly related to functions of government.
The activity does not have as its primary objective the benefit of a private interest whether
profit or not-for-profit.
This policy is intended to provide guidelines regarding which expenditures are for public purposes
and authorized in accordance with the City’s annual budget process, and which expenditures are
not considered to fall within the public purpose definition and are therefore not allowed. There is a
public benefit in ensuring high employee productivity and morale, recruitment and retention of
personnel.
Responsibility
The City Manager is the responsible authority overseeing all City expenditures and as such is the
chief purchasing agent for the City. Responsibility for administering this Public Purpose
Expenditure Policy has been delegated to the Finance Department. Further, all officers and
employees authorized by their Department to make purchases for the benefit of their respective
departments are responsible for complying with this policy and corresponding procedures.
Policy
Expenditures of public funds must comply with the public purpose standards defined above. When
reviewing an expenditure to verify the standards have been met, the City Manager, or his/her
designee, should consider the time of day the event is held, the business purpose of the event,
whether the event was intended to attract non-City employees, the frequency of the event, and the
reasonableness of the cost. The following guidelines address specific examples of public
expenditures, but examples are not meant to be all-inclusive.
The Minnesota Supreme Court further clarified that activities that promote the following objectives
for the benefit of all the city’s residents further a public purpose:
•Public health
•Safety
•General welfare
•Security
•Prosperity
•Contentment
These procedures are governed by City Charter, the City Council, and State Statute. See
appendix for exact references.
1.Permitted Expenditures for Meals, Refreshments:
Use of City funds in reasonable amounts for meals and/or refreshments for elected and
appointed city officials and employees are permitted in the following circumstances, with
Department Head approval:
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a.City-sponsored events of a community-wide interest where staff are required to be
present (e.g., National Night Out, Citizens Police Academy).
b.City council, boards and commissions meetings held during or adjacent to a meal
hour
c.Meetings related to City business at which the attendees include non-city
representatives
d.Professional association meetings, conferences and training when meals are included
as part of the registration or program fee, or in accordance with the travel policy
e.Departmental staff or training meetings (e.g. annual department level picnic)
f.Annual employee recognition and appreciation events (e.g., service awards, food and
beverage, employee recognition event, employee clean up breakfast)
g.Annual recognition events for volunteer and non-employees
h.City-sponsored training or work-related meetings where employees are required to
participate or be available during break periods
i. Multi-departmental meetings scheduled during or adjacent to a meal hour when no
other meeting time is available
j.Work activities requiring continuous service when it is not possible to break for meals
(e.g., election days, Christmas meal, Thanksgiving meal, water main breaks,
emergency snow removal, time sensitive public safety responses)
k.Healthy snacks and incentives of moderate value provided to attendees of safety,
health, and wellness programs for City employees
l.Events recognizing completion of a significant work-related project (City Manager
approval required)
m.Events, meetings, programming, and incentives of moderate value that are supportive
of the City’s strategic priorities of inclusion and equity (e.g., food for attendees of
training programs; attendance at events intended to increase, broaden, and engage
the participation of ethnically and racially diverse communities in city matters)
2.Other Permitted Expenditures
a.Retirement and annual service awards recognition (subject to Human Resources
guidelines).
Recognition Gift:
Approved up to $25 per employee, unless part of a Council-approved employee
compensation program
Recognition gift purchases over $25 but less than $100 per employee, such as caps,
pins, rings, watches, statues, plaques, medals, awards, ribbons, and certificates will be
approved by the City Manager or his/her designee for retirement and extraordinary
individual or item contributions.
Employee Recognition Awards:
Years of service awards for regular full and part-time employees of $10.00 per year of
service are recognized at 5-year intervals and will be awarded at the Annual
Recognition Event.
Retirement Refreshments in recognition of those retiring with over 10 years of service.
This amount will not to exceed $50.00.
The Council will allow for the annual appropriation of funds within the Administration
Department’s budget to pay for such expenditures.
b.Clothing and Other Sundry Items -Employees may receive clothing and other sundry
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items of nominal value when these items are made available to the general public or if
these items are determined by the City Manager to be important to the successful
involvement of employees in promoting our operational values, and special city‐
sponsored or city supported events (i.e. National Night Out, etc.). Employees may be
supplied with clothing, boots and other gear necessary for the performance of their
job
c.Staff time and equipment use for city sponsored employee events as approved by
City Council and/or City Manager as allowed by state statute and/or city charter/code
(e.g. set-up for annual employee lunch)
d.City expenditures for non-profit organizations allowed by state statute
e.Refreshments and food for Emergency Response Staff
•Emergency personnel are often called to perform duties for extended periods of
time where refreshments are important to duty performance. Firefighters, police
officers, other emergency response personnel, or other staff necessary to maintain
continuity of service may be provided refreshments or food when it is deemed
appropriate by the City Manager or Department Director to assure the delivery of
quality emergency response service
f.Employee Wellness Program Public funds may be expended to establish, implement,
and operate a preventive health and wellness program for city employees. The nature
and scope of the programs to include but not limited to: preventive health screening
and assessments, health and wellness education and programming (i.e. nutrition,
cardiovascular fitness, flexibility and core strengthening, stress management, tobacco
cessation, etc.) and program incentives to include but not limited to cash incentives as
approved by the City Council. To encourage wellness activities, the cardio fitness
room, weight training room, and racquetball courts (during non‐prime times) at the
Community Activity Center will be available to employees during their non‐work hours
at no charge. Registration, proper training and signed waiver form are required before
use of these facilities. Only employees participating in the wellness program are
eligible for this incentive
3.Prohibited Expenditures
Use of City funds for meals and/or refreshments for elected and appointed City officials
and employees are prohibited:
a.Food and refreshments for routine work meetings
b.Alcoholic beverages
c.Employee functions or celebrations that are solely social in nature (e.g., birthdays,
holiday luncheon)
d. Fundraisers for non-City related events
e.Participation in optional activities unless included as part of an overall conference
registration fee (e.g. optional golf rounds, sporting events, concerts)
f.Employee-sponsored fundraising events (e.g., charitable giving campaign)
g.For funeral flower arrangements upon death of an employee, elected official, or
one of their immediate family members. (Sunshine club administered separately
covers this expense see appendix)
h.Employee coffee and supplies, coffee services
Community Outreach
Community Events and other events that involve or invite participation by the general public:
Representative staff members/Council members may participate in events that directly benefit the
marketing of the City. These events and any City expenditures for them require prior specific
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approval by the City Council and also include City expenditures for participation fees, donated
gifts, door prizes, etc.
Documentation
All expenses allowed above must be fully documented. The expected documentation will include
date and time of the event, business reason for the event (agenda from a meeting is sufficient),
staff and non-city representatives in attendance, and a receipt for the actual purchase. Supervisor
approval and written documentation is required for use of City assets.
Any expenditure for meals or refreshments that exceeds $250 for one event must have prior,
written authorization by the Department Head, before the purchase is made. Any expenditure for
meals or refreshments that exceeds $500 for one event must have prior, written authorization by
the City Manager, before the purchase is made. Failure to obtain the necessary authorization may
result in denial of the claim.
Special Requests
From time to time, there may be an event that is a proper public expenditure, but that is not
contemplated by the policy above. Departments may submit to the City Manager, or the City
Manager’s designee, a request for such a public expenditure in writing. This request must show
how the expenditure is related to a public purpose as stated in the Purpose section above. Only
expenditures that meet all of the findings in the Purpose section above may be approved.
Periodic Review
This Public Purpose Policy shall be reviewed at least once every year by the City Council.
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Budget Controls
It is the responsibility of the department head to adhere to the department budget. Finance will
provide an itemized, Council approved, budget for the departments to use for coding expenditures.
Expenditures will be coded to the correct account number based on the type of expenditure, not on
the amount of budget remaining. Failure to do this skews your actual expenses and provides
inaccurate historical data for future budgeting data. Each division must be within their total overall
budget at the end of the year. It is the responsibility of each department head to anticipate any
significant budget overages and supply information for Council presentation to transfer additional
funds to their budget from the contingency account.
Unbudgeted Expenditures
1) General Requirements:
It is the responsibility of the department head to ensure their department stays within the
total budgeted dollars. There are instances where emergencies arise or where
procurements are desired outside the anticipated budget but within the overall budgeted
dollars of a department.
2)Emergency Purchases
Occasions may arise due to emergencies where the normal bidding or RFP process cannot
be followed. In those cases where the purchase exceeds $50,000, Council approval must
be obtained prior to payment. An emergency must be a situation arising suddenly and
unexpectedly that requires speedy action essential to health, safety and welfare of the
community, and not just an inconvenience. An emergency exists when a breakdown in
machinery and/or a threatened termination of essential services or a dangerous condition
develops, or when any unforeseen circumstances arise causing curtailment of an essential
service.
Ex) Infrastructure repair (Water Main breaks, emergency Bridge work)
Emergency building repairs (Leaking roof, ect)
Information Technology systems breaches
Critical operational equipment (Such as a Generator in emergency)
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Purchasing Guidelines & Information
Under City Charter and Ordinance, it has been determined purchasing will follow the Uniform
Municipal Contracting Law, Minnesota Statutes Chapter 471.345. This allows the City Manager
the authority to incorporate changes to our purchasing limitations in accordance with MN Statutes.
City Manager may develop a process which may be more restrictive than State Law but may not
be less restrictive. A "contract" (general purchasing) 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.
Capital item purchases that have been authorized by the City Council through either the budget
process or the Capital Improvement/ Capital Equipment Plan approval may be made using these
guidelines. If an item has not been specifically approved during these annual processes, then
they must be taken back for explicit approval.
General Guidelines
These general guidelines will be adhered to as closely as possible by all departments in the
procurement of goods and services. Based on the nature of the purchase, individual
departments may wish to use more stringent requirements to further protect the public goods.
•Local Buying: It is the desire of the City to purchase from Brooklyn Park vendors and
Minnesota vendors when cost effective. This can be accomplished by insuring that local and
state vendors who have goods or services available are included in the competitive shopping
process that will precede most purchases.
•Paper Procurement Policy: Council adopted a Paper Procurement Policy in 1990 and
committed to purchasing recycled and recyclable products whenever possible and feasible.
(See Resolution 1990- 124)
•Planning: Planning for purchases will be done on both a short-term and long-term basis.
•Small orders and last-minute purchases will be minimized thereby increasing the
capability of each department to purchase its goods and services in larger quantities in
order to obtain the maximum discounts possible. Planning will also cut down on the
number of trips required to obtain materials and minimize the amount of clerical and
supervisory time spent on documenting purchases. In planning it is critical that you begin
the process by accurately estimating the total cost. Failure to follow this step could
jeopardize the purchase. There are specified thresholds where different processes and
procedures apply. In order to avoid violating these thresholds, if the estimated cost is
close to one of the thresholds you will follow the requirements for the higher threshold.
•Sustainable Products: All departments will use, where practicable, reusable products, recycled
content products and recyclable products. City bid specifications will provide for optional
pricing of sustainable products whenever possible.
•Cooperative Purchasing: When available, the City will take advantage of cooperative
purchasing agreements with other entities (e.g. State of Minnesota, Hennepin County,
ISD#279 (Osseo) & ISD&11 (Anoka), other cities, etc.).
Minority (People of Color) & Women-Owned Business Development
The City of Brooklyn Park contracts for and procures a wide variety of goods and services.
Minority (People of Color) and Women-Owned Businesses are encouraged to respond to
requests for bids and proposals directly as prime contractors.
The City will also recognize The Central Certification (CERT) Program; which is a small
business certification program recognized in addition by Hennepin County, Ramsey County,
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the City of Minneapolis and the City of Saint Paul. The CERT Program includes certification
for Minority (People of Color)-Owned Business Enterprise (MBE), Women-Owned Business
Enterprise (WBE), and Small Business Enterprise (SBE).
To become eligible for The Central Certification (CERT) Program please refer to the
following criteria.
Eligible business—a business entity whose principal place of business is in the marketplace
that:
•is at least fifty-one (51) percent owned by one or more native or naturalized citizens of the
United States, or lawfully admitted permanent residents of the United States, and
•is not a broker, or a manufacturer's representative, does not operate as a franchisee or
under a franchise agreement, and is not a business in which the owner is also owner or part
owner of one or more businesses that is dominant in the same field of operation; and
•performs a commercially useful function; and
•has been in operation for at least one (1) year or, in operation for less than one year and is
able to provide documentation showing that it has an established record of generating
revenue while performing the business function represented in its application for
certification or, if a professional service, is able to provide documentation showing that it
possesses applicable licenses or professional certifications or credentials.
Small Business Enterprise (SBE)—an eligible business that additionally:
•is not a business dominant in its field of operation, nor an affiliate or subsidiary thereof
Minority-owned Business Enterprise (MBE)—an eligible business that additionally:
•is at least fifty-one (51) percent owned by one or more minority (Persons of Color), and
•has its management and daily business operations controlled by one or more minority
persons who own it.
Women-owned Business Enterprise (WBE)—an eligible business that additionally:
•is at least fifty-one (51) percent owned by one or more women, and
•has its management and daily business operations controlled by one or more women who
own it.
The CERT certification is valid for a thirty-six (36) month period following the date granted.
A certification may be renewed for additional three-year periods by completing a
recertification application.
Decentralized Purchasing
The City of Brooklyn Park has a “decentralized” purchasing program where Department
Directors or designated persons are responsible for negotiation with the vendor, calling for quotes,
placing orders with vendors, as well as processing the request for payments. Finance is
responsible for ensuring compliance with City policy and Procedures, and to serve as a resource
to other departments to help with purchases. Finance will maintain information on contracts,
vendors, past purchases, and other related information. There are a few exceptions including the
following:
•Technology (Hardware and Software): Authorized purchasers must consult with the
Information Systems Manager prior to acquiring any hardware and/or software to ensure it is
consistent with the Technology Plan.
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•Vehicles: Authorized purchases must consult with the Fleet Manager prior to acquiring
vehicles and appurtenant equipment to ensure it is consistent with the Equipment Plan.
•Building Maintenance: All building repairs and maintenance will be coordinated with the facility
maintenance divisions.
•Other.
o To be consistent and to save time and money, some purchases are coordinated by
Administration, such as:
o Business Cards
•City Letterhead
•Envelopes
•Paper
•Stationery Products
Purchasing Payment Procedures
•The Finance Division processes payments to vendors based on the Minnesota State Statute
471.425. – which states “For municipalities who have governing boards which have regularly
scheduled meetings at least once a month, the standard payment period is defined as within
35 days of the date of receipt.”
•The Finance Division processes payments once a week. All steps of the invoice approval
process, including the final procedure of “process for payment,” must be completed before the
invoice can be processed.
•Payments will be made from vendor invoices, and official City Payment/Reimbursement
Forms.
•Persons authorizing payments are responsible for verifying that goods and services have been
received, that they are necessary, and there are no duplicate payments.
•Persons authorizing payments are responsible for coding invoices and ensuring that correct
account codes are used. Reference Account code definitions.
•Generally accepted accounting principles will be followed. Invoices that are received after
December 31, for good or services will be expensed in the year the goods or services were
received. Invoices turned in after the second Wednesday in February of the following year, will
be considered expenses in the following year.
•Employees will not make the following purchases for personal use through the City, unless
approved by the department head.
•Aspirin, acetaminophen, ibuprofen etc.
•Sunscreen,
•Coffee
•Alcoholic beverages of any kind.
Governing/ Purchasing Authority
The City Manager is the chief purchasing agent of the City and has the authority to make or
execute purchases up to $50,000. Such purchases would include routine services, equipment,
supplies or commodities up to the City Managers threshold. The City Manager may delegate the
authority to make purchases and execute documents up to $25,000 to the Department Heads.
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Directors or their designee are responsible to follow purchasing regulations and procedures such
as, but not limited to obtaining bids or quotes, maintain records of bids or quotes in accordance
with records retention requirements, place actual orders, receive and verify deliveries, and
approve invoices for payment. The responsibility lies with each department to keep the City
Manager and Finance Director informed of purchases.
Approvals
Approved Signers
The staff designated as authorized approvers must be communicated to the Finance Department.
Final approval of all purchases must be evidenced by the authorized purchaser’s signature on the
invoice and/or receipt. Each invoice must have two level of approval and the second level approval
must be a supervisor who is responsible for the budget. In the case where purchase orders are
required, they must be completed prior to acquisition to insure accountability, provide amount
verification and avoid any misunderstanding with respect to cost between the vendor and the City.
Signature Methods
The City of Brooklyn Park will also accept e-signatures that have been authenticated by a digital
software, such as DocuSign and Adobe Sign, when it includes the date and time of the signature,
an authentication code, and is attributable to the person intending to sign the document.
The City of Brooklyn Park accepts handwritten signatures on faxed or scanned documents and
considers them to be e-signatures and are acceptable for procurement purposes.
1099 Information
The City is obligated to report to the Internal Revenue Service payments to an individual or a
partnership for services rendered. The City requires a W-9 form, and their tax identification number
or social security number.
Petty Cash Vouchers
The petty cash fund is used for expenditures made on behalf of the city for goods up to $20.00.
Petty cash purchases shall be kept to a minimum. A Petty Cash form must include an explanation,
account code and authorized signature. The person receiving the cash also needs to sign the petty
cash form. The petty cash funds need to be balanced and/or replenished, at a minimum, on a
monthly basis.
• Petty Cash must be requested in the same year as the expenses.
Internal Payments
A payment from one department to another.
A completed Internal Payment Request form for these payments is required.
Examples of internal payments:
• Water and sewer services
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• Permits
• Licenses
Sales Tax
The City of Brooklyn Park is tax exempt except for Enterprise operations. To provide inputs used
to provide these services exempt from tax, the local government must provide the seller with a
completed Certificate of Exemption (Form ST-3), at the time of purchase.
Some Purchases to provide the following goods and services remain taxable:
• Construction materials and supplies purchased by a contractor or subcontractor un-der a
lump-sum contract.
• Purchases of construction materials for buildings or facilities which are not principally used by
the local government.
• Purchases of lodging, prepared food, candy, and soft drinks.
• Leases of motor vehicles.
• Purchases of motor vehicles (see page below).
• Other taxes on certain purchases, such as solid waste management tax and petroleum tax.
• Purchases made by an employee that are reimbursed by the local government.
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Professional Service & Consultant Contracts
Purpose
Purchases that require contracting for professional services, such as those provided by engineers,
lawyers, architects, accountants, and other services requiring technical, scientific, or other
professional training, when competitive bidding is not required
Policy
The term “Professional Services” applies to all advisory services such as, but not limited to:
auditing, engineering, financial, legal, personnel, technical, training, or other services requiring
technical, scientific or professional training are exempt from competitive bidding requirements.
However, the goals to secure professional services remain the same: to ensure all purchases
are consistent with Minnesota statutes, to establish internal controls, to maintain the appropriate
documentation, and to ensure the best value for the public money. Contracts for professional
services shall be made only with responsible consultants who have the capability to successfully
fulfill the contractual requirements. Consideration shall be given to their past performance and
experience, their financial capacity to complete the project, the availability of personnel, and
other appropriate criteria. Each department requiring professional services shall be responsible
for researching such services as well as presenting the proposed contract to the City Council for
approval. The nature of the professional service is written as a request for proposals (RFP).
Contracts for professional services in excess of State Statute (MSS 471.345) shall be submitted
to the City Council for approval.
State Statue does not require advertisement of bids or sealed bids for professional services such
as those of engineers, lawyers, architects, accountants, and other services requiring technical,
scientific, or professional training. It is recommended that proposals be obtained through a request
for proposal (RFP) process when such a process would provide the City with increased quality or a
decreased price.
Procedures
Professional services are those that require specialized intellectual, educational, or creative
expertise. Examples include design services, editorial services, technology related services,
research services, and consultants.
Construction Professional Services are those that require architecture/engineering (A & E)
services, construction consulting, construction and material testing, or construction expertise.
Examples include architectural design, interior design, engineering, cost control consulting, and
construction management.
Units may purchase these professional services on an intermittent or temporary basis. The
following are examples of why professional services may be needed:
• limited or one-time use of specialized or creative skills;
• the provider has expertise that is not available within the unit or City’s; or
• the supplier has in depth knowledge of the marketplace to provide solutions or guidance.
Professional services for auditing, architectural design, legal services and construction project
management require a contract at any dollar amount.
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Professional services and their expenses that total under $3,000 may be procured without a
contract for professional services. The department may create a contract if it chooses.
Professional services engagements totaling $3,000 or greater require a contract for professional
services. Units must ensure that all contracts for professional services:
• comply with IRS requirements for defining employees and independent contractors.
• comply with special requirements of projects supported by sponsored funds.
• include a complete statement of work including any deliverables.
• include either the City's standard Contract for Professional Services (CPS) terms and
conditions, OR use terms and conditions that have been reviewed and approved by city
Attorney
• do not conflict with other City policies.
• are fully approved and the contract is issued to the contractor before any work begins.
• All professional services and expenses may NOT be purchased using the City’s
procurement card (PCard).
• Per IRS regulations, City employees may NOT pay for any professional services and
expenses out-of-pocket using their own funds. These expenses are always unallowable
and non-reimbursable.
• For purchases totaling less than the formal bid threshold, a competitive proposal process
is not required. However, the department may request that Purchasing Services conduct a
competitive bid process
• If the City uses a consultant to prepare or assist in the preparation of a Statement of Work
or a Request for Proposals, that consultant shall not be permitted to submit a proposal.
Deviations from this policy require the approval of the City Manager.
Statement of Work:
The Statement of Work is the most important document of a professional services contract, as it:
• Provides management with an outline of the project, the work to be done in-house and the
work to be done by the proposer.
• Provides the basis for soliciting proposals.
• Provides the basis for the administration and management of the resulting contract.
General Requirements
The Statement of Work must:
• Outline the nature of the work and the level of effort that will be required of the consultant.
• Specify the anticipated results of the contract.
• Specify the services and information that will be provided by the City.
• Be prepared in a manner that assures that all proposals can be prepared on a common
basis.
• Identify the goals, objectives, criteria and issues associated with the project. If they are to
be developed as part of the project, describe how they are to be finalized and by whom.
• Describe work tasks to be accomplished during the conduct of the project by the proposer,
City staff or other party and a time schedule for completion of each task.
• Describe the proposed budget and proposed hours that will be required to complete each
work task.
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Request for Proposal (RFP)
The City follows an RFP process when soliciting professional consulting services. The Request for
Proposal and the Statement of Work shall provide all of the information a prospective proposer
needs to submit a proposal.
Recommended sections to include in an RFP:
• Background and scope of project.
• Specifications of the professional services desired.
• Contract terms. Include and reference as an attachment the “Standard Professional
Services Agreement”
• The last day for submission of proposals and the place where they are due.
• Include requirement for attendance at a pre-proposal meeting to answer vendor questions
regarding the RFP. This provides fairness to all participants when questions are answered
with all participants present. Request that questions be submitted in advance.
• Proposal evaluation and selection criteria.
• Format required for submitted proposals to provide for consistent submittals.
• Profile questionnaire to obtain general information about the vendor.
• A statement reserving the right of the City to reject all proposals.
The City attorney must review the RFP before it is sent to selected vendors. RFPs will be sent to a
minimum of two reasonable/manageable vendors.
After the submittal deadline, review Proposals by using a rating sheet and rate each Proposal
based on the specifications and general information. Follow up with reference checks as
appropriate. Select a vendor and make recommendation to the City Council.
The formal RFP process for service providers must be initiated at least every fourth year. Reviewal
at that point in time shall not preclude a current service provider from resubmitting a proposal for
consideration.
While is not required per se, it is recommended that the solicitation of proposals be advertised in an
appropriate publication (such as the State Register) or trade journals.
Non-applicability
This procedure does not apply to professional services that can be acquired for less than $50,000.
For purchases of less than $50,000, the procuring department must justify in writing to the City
Manager why and how the contractor was selected.
People of Color & Women-Owned Business Development
The City of Brooklyn Park contracts for and procures a wide variety of goods and services.
People of Color and Women-Owned Businesses are encouraged to respond to requests for
bids and proposals directly as prime contractors. (Refer to Page 15 for additional
information)
Standard Professional Services Agreement
A “Standard Professional Services Agreement” will be used for all professional service contracts.
The Standard Professional Services Agreement outlines consultant obligations including insurance
and liability coverage requirements, audit disclosure, subcontractors, and termination processes.
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This contract will be used for all professional service agreements.
Purchasing Thresholds
The following chart identifies the required procedures for professional services contracts.
PROFESSIONAL SERVICES
Purchase
Level (1)
Purchase
Process
Required
Approving
Authority
Notes
$0 -
$25,000
Quotes Department
Head
• For an item costing between $0 and $10,000, Quotes are not required.
• Purchases can be made on the Open Market and verbal quotes are optional.
• If quotes are received, they will be kept on file for at least one year.
• For an item costing between $10,001 and $25,000, the City shall request price
quotations from at least two sources, when practical.
• In cases where the City has established a pool of qualified consultants (e.g., engineers,
architects, planners), the consultant may be selected from the existing pool. (2)
• If a consultant is determined appropriate for continuity, cost, quality or time efficiencies, two
quotes are not required. (i.e. a consultant’s prior work is integral to a project, so we will not
require a second quote, since the consultant is deemed the appropriate vendor.)
$25,001 -
$50,000
Quotes City Manager
• For an item costing between $25,001 and $50,000, the City shall
request price quotations from at least two sources, when practical.
• For an item costing above $25,000, the City shall request written price quotations in the
form of a Request for Proposal from at least two sources, when practical.
• In cases where the City has established a pool of qualified consultants
(e.g., engineers, architects, planners, etc.), the consultant may be selected from the
existing pool. (2)
• If a consultant is determined appropriate for continuity, cost, quality or time efficiencies, two
quotes are not required. (i.e. a consultant’s prior work in integral to a project, so we will not
require a second quote, since the consultant is deemed the appropriate vendor.)
Above
$50,000
Council
Resolution
City Council
• For an item costing above $25,000, the City shall request written price quotations in the
form of a Request for Proposal from at least two sources, when practical.
• In cases where the City has established a pool of qualified consultants (e.g., engineers,
architects, planners, etc.), the consultant may be selected from the existing pool. (2)
• If a consultant is determined appropriate for continuity, cost, quality or time efficiencies,
two quotes are not required. (i.e. a consultant’s prior work in integral to a project, so we
will not require a second quote, since the consultant is deemed the appropriate vendor.)
• The standard contract shall be awarded to the service provider with the best
qualifications and proposal for the specific project. Total cost shall not be the only
consideration but must be included in the analysis of the proposals.
1 Quotes must be kept on file for at least one year
2 If the estimated cost is close to one of the thresholds, you will follow the requirements for the higher threshold.
Required Approvals
Professional
service Documentation Director City
Manager Council
Up to $25,000 2 or more quotes if possible X
$25,000-$50,000 Multiple quotes recommended X X
$50,000+ Multiple quotes recommended X X X
1 Quotes must be kept on file for at least one year
2 Use City’s “Professional Services Agreement (Contract)”
3 Contracts over $175,000 that include labor require a performance and payment bond
23 | Page
Alternative to Publishing of Bids and Requests for Proposals (RFPs)
As an alternative to publishing bids in a newspaper, a city or other political subdivision may post
solicitations of bids, requests for information or requests for proposals by using its Web site or
recognized industry trade journals. The political subdivision must simultaneously publish, either in
minutes or separately in a notice published in the official newspaper, a description of all
solicitations or requests so distributed, along with the means by which the publications occurred.
Publication by alternative means must be in substantially the same format and for the same
period of time as a publication in a qualified newspaper.
For the first six months after the political subdivision designates an alternative means of
publication, it must continue to publish solicitations of bids, requests for information, and requests
for proposals in the official newspaper in addition to the alternative method. The publication in the
official newspaper must indicate where to find the designated alternative methods.
If, in the normal course of its business, a qualified newspaper maintains a Web site then, as a
condition of accepting and publishing public notices, the newspaper must agree to post all the
notices on its Web site during the notice’s full publication period.11
10 Minn. Stat. §§ 412.311, subd. 1 (published notice); 331A.03, subd. 3 (alternative methods).
11 Minn. Stat. § 331A.02, subd. 5.
Exceptions to Competitive Bidding
The following are some of the more common exceptions to the competitive bidding
requirements:
• Contracts less than the State Statute (MSS 471.345)
• Cooperative purchasing organizations
• Intergovernmental Contracts
• Noncompetitive supplies and equipment
• Real estate purchases
• Professional services including:
o Architectural
o Auditing
o Engineering
o Legal
o Group Insurance
o Banking Services
o Investment Services
o Financial Service Providers
o Construction Management
o Surveying
• Emergency Purchases
• Some fuel contracts
• Guaranteed energy-saving contracts
• Professional services including:
• Reverse auctions for purchase of supplies, materials and equipment
• Electronic sale of surplus supplies, materials and equipment
• Non-competitive supplies and equipment
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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.
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Contracts requiring Bids
For contracts in excess of the State Statute (MSS 471.345), the City shall advertise for sealed
bids in the official newspaper of the City. See City Clerk for the official newspaper of the City.
The following steps need to be taken, the responsibility for which, rests with the originating
department:
• Ensure that funds have been appropriated for this contract.
• Place plans and specifications for local improvements/special assessment projects on the
City Council agenda for approval as required by Mn. Stat. 429.041.
• Ensure proper publication is made in the official City newspaper.
• Distribute specifications and answer any bidder questions.
• Open sealed bids at the scheduled time and place, and tabulate.
• The contract shall be awarded to the lowest, responsible bidder.
• Request for Council Action to approve the awarding of the contract.
• Arrange for the contract to be signed by the City Manager and the Mayor.
Other Bidding Requirements
• Bidding Requirements shall not be avoided by splitting a contract into two or more contracts,
each of which is below the minimum amount requiring bids; in an attempt to circumvent the
necessity of obtaining sealed bids and the appropriate approval authority.
• Specifications may not be written so as to exclude all but one type or kind of supplies or
equipment.
• The City may not accept a bid that includes a number of items when the advertisement called
for separate bids for each item.
• The City must re-bid when they make a material change in the specifications of the contract,
even if the change would not affect the rank order of the bids received.
• Minnesota Statutes Chapter 429 (local improvement code) applies to all public improvement
contracts (i.e., sewer, water and streets) being financed with special assessments.
Sole Source Purchases
Sole Source is a vendor or provider of service that offers a unique service or product that no one
else offers. Sole source procurements under $50,000 shall be approved by the City Manager and
sole source procurements in excess of $50,000 shall be approved by the City Council. Sole source
purchases may be made if they comply with at least one of the following:
• Item or service under patent of copyright held by a single vendor and item or service
possesses or has capabilities critical to use.
• Item or service possesses a unique function or capability critical in the use of the item or
service and not available from any other sources.
• The purchase is for equipment associated with use of existing equipment where
compatibility is essential for integrity of results.
• The purchase is for replacement parts needed for repair of existing equipment where
compatibility with equipment from the original manufacturer is paramount.
• The purchase is for accessories sought for enhancement of existing equipment where
compatibility with equipment from the original manufacturer is paramount.
• The purchase is for technical services associated with the assembly, installation, or
servicing of equipment of a highly technical or specialized nature.
• Additional item, service, or work required, but not known to have been needed when the
26 | Page
original order was placed with vendor and it is not feasible or practicable to contract
separately for the additional need.
• The purchase must match the existing piece or brand of equipment and is only available
from one vendor.
Sole source purchases must still follow the purchase process required based on the amount being
purchased. For example, if the purchase is expected to exceed the State Statute (MSS 471.345),
a competitive bidding process must be followed even if the expectation is that only one bid will be
received.
Emergency Management
Under Minnesota’s Emergency Management Act (Minn. Stat. §12.01-12.61), the City has the
authority to enter into contracts during an emergency without following many normally required
procedures. An emergency is defined “an unforeseen combination of circumstances that calls for
immediate action to prevent a disaster from developing or occurring.” A disaster is “a situation that
creates an actual or imminent serious threat to the health and safety of persons, or a situation that
has resulted or is likely to result in catastrophic loss to property or the environment, and for which
traditional sources of relief and assistance within the affected area are unable to repair or prevent
the injury or loss.”
During an emergency or disaster, the City Council may waive compliance with the time-
consuming procedures or formalities concerning:
1. The performance of public work;
2. Contracting;
3. Incurring obligations;
4. Renting equipment; and
5. Purchasing supplies and materials.
Emergency purchases will only be allowed when the mayor issues a proclamation declaring an
emergency, and the steps listed in Minn. Stat. §12.29 are completed.
Withholding Certificates (IC134)
No state agency or local unit of government can make final payment to a contractor until the
Department of Revenue has certified that the contractor and any subcontractor have fulfilled the
requirements of Minnesota withholding tax laws. If you are a prime contractor, a contractor or a
subcontractor who did work on a project for the state of Minnesota or any of its local government
subdivisions — such as a county, city or school district — you must submit a Contractor Affidavit
to the Department of Revenue to receive a certificate of compliance.
Contract Change Orders
Change orders may occur due to City driven changes, errors and omissions, field directives,
unforeseen/hidden conditions, regulatory requirements or changes that are contractor driven.
Changes that need to be made during construction need to be addressed and approved in a timely
manner in order to keep the project on schedule.
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Any change order that does not exceed $50,000 may be approved by the City Manager or a
Department head specifically designated by the City Manager. Any change order that exceeds
$50,000 must be approved by City Council. In an emergency the City Council may enter into
contracts and incur obligations necessary to combat the disaster by protecting the health and
safety of persons and property and by providing emergency assistance to the victims of the
disaster without complying with the laws relating to purchasing and contracting.
Retainage
A City of Brooklyn park will reserve an amount as retainage from any progress payment on a
public contract for a public improvement. The amount may not exceed 5 percent of the
payment. The city may reduce the amount of the retainage and may eliminate retainage on
any monthly contract payment if the work progresses satisfactorily.
Prompt Payment to Subcontractors
City contracts that involve a prime contractor must require the prime contractor to pay
subcontractors within ten days of the prime contractor’s receipt of payment from the city for
undisputed services provided by the subcontractor. The contract must require the prime contractor
to pay interest of 1.5 percent per month or any part of a month to the subcontractor on any
undisputed amount not paid on time.
Performance and Payment Bonds (Contractor’s Bond)
For contracts in excess of the State Statute MSS 471.345 that include labor (ex. road construction
and the purchase and installation of playground equipment) a performance and payment bond in
an amount not less than the contract price is required from the vendor. The required performance
bond benefits the city by ensuring that the work is completed according to the terms of the contract,
while the required payment bond benefits subcontractors and people who provide labor and
materials, by seeing that their claims for labor and materials are paid. 18 When the public work
contract is let, the amount of the bond needs to be equal to the contract price. If the contract price
increases due to change orders, unforeseen conditions, cost overruns or any other reason after the
contract is signed, the City Council has the option of increasing the amount of the contractor’s
bond. Consideration may be given for the percentage of the contract that is complete in relation to
the contractor’s bond and the increase in the contract price. Additional Information on Performance
and Payment Bonds (Contractor’s Bond) is available in the state statues below
18 See Public Contractors’ Performance and Payment Bond Act, Minn. Stat. §§ 574.26-.32.
Provisions Included in all Contracts (Procurement Standards)
It is the policy of Brooklyn Park to include all of the following provisions, as applicable, in all
contracts (including small purchases) with contractors and sub-awards:
1. Remedies:
All contracts in excess of the small purchase threshold fixed at 41 U.S.C. 403(11) (MSS
471.345) shall contain contractual provisions or conditions that allow for administrative,
contractual, or legal remedies in instances in which a contractor violates or breaches the
contract terms.
28 | Page
2. Termination:
All contracts in excess of $10,000 shall contain suitable provisions for termination by
Brooklyn Park, including the manner by which termination shall be affected and the basis
for settlement. In addition, such contracts shall describe the conditions under which the
contract may be terminated for default as well as conditions where the contract may be
terminated due to circumstances beyond the control of the contractor.
3. Equal Employment Opportunity:
All contracts shall contain a provision requiring compliance with E.O. 11246, "Equal
Employment Opportunity," as amended by E.O. 11375, "Amending Executive Order 11246
Relating to Equal Employment Opportunity," and as supplemented by regulations at 41
CFR part 60, "Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor."
4. Davis-Bacon Act, as amended (40 U.S.C. 3141-3148):
If included in the federal agency's grant program legislation, all construction contracts of
more than $2,000 awarded by Brooklyn Park and its sub-recipients shall include a
provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as
supplemented by Department of Labor regulations (29 CFR part 5, "Labor Standards
Provisions Applicable to Contracts Governing Federally Financed and Assisted
Construction"). Under this Act, contractors are required to pay wages to laborers and
mechanics at a rate not less than the minimum wages specified in a wage determination
made by the Secretary of Labor. In addition, contractors shall be required to pay wages
not less than once a week. It is the policy of Brooklyn Park to place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation and
the award of a contract shall be conditioned upon the acceptance of the wage
determination. Brooklyn Park shall also obtain reports from contractors on a weekly basis
in order to monitor compliance with the Davis-Bacon Act. Brooklyn Park shall report all
suspected or reported violations to the Federal awarding agency.
5. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333):
[Where applicable] All contracts awarded by Brooklyn Park excess of $100,000 for
contracts that involve the employment of mechanics or laborers shall include a provision
for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor
regulations (29 CFR part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be
required to compute the wages of every mechanic and laborer on the basis of a standard
work week of 40 hours. Work in excess of the standard work week is permissible provided
that the worker is compensated at a rate of not less than one and a half times the basic
rate of pay for all hours worked in excess of 40 hours in the work week. The requirements
of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or
mechanic must be required to work in surroundings or under working conditions which are
unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of
supplies or materials or articles ordinarily available on the open market, or contracts for
transportation or transmission of intelligence
6. Rights to Inventions Made Under a Contract or Agreement:
Contracts or agreements for the performance of experimental, developmental, or research
work shall provide for the rights of the Federal Government and Brooklyn Park in any
resulting invention in accordance with 37 CFR part 401, "Rights to Inventions Made by
Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts
29 | Page
and Cooperative Agreements," and any implementing regulations issued by the awarding
agency.
7. Clean Air Act (42 U.S.C. 7401-7671q and the Federal Water Pollution Control Act (33 U.S.C.
1251 -1387), as amended:
Contracts and sub-awards of amounts in excess of State Statute (MSS 471.345) shall
contain a provision that requires the recipient to agree to comply with all applicable
standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et
seq.) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
Violations shall be reported to the Federal awarding agency and the Regional Office of the
Environmental Protection Agency (EPA).
8. Debarment and Suspension (E.O.s 12549 and 12689):
Brooklyn Park will review all purchases to verify that purchases will not be made against
contractors that are on the Debarment or Suspension list supplied by the Government.
The Department will review all requests submitted to make sure the contractor is not on
the debarment list. This list is available at - https://www.sam.gov/. If a match is found,
the program manager will be notified directly, and Accounting will not process the
requisition. All results of searches will be attached to the filed paperwork for verification
of search.
9. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352):
For all contracts or Sub-grants of $100,000 or more, Brooklyn Park shall obtain from the
contractor or sub-grantee a certification that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to
influence an officer or employee of any agency, a member of Congress, officer or
employee of Congress, or an employee of a member of Congress in connection with
obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352.
Likewise, since each tier provides such certifications to the tier above it, Brooklyn Park
shall provide such certifications in all situations in which it acts as a sub-recipient of a sub-
grant of $100,000 or more.
30 | Page
Below is a quick reference chart for procurement methods according to dollar amount:
Quick Reference Chart - Procurement Methods
Construction, Contracted Services, Goods & Services Contracts Required Approvals
Contract or
P urchase amount Documentation Director City Manager Council
Less than $25,000
• Open Market or
• Direct Negotiation if Over $10k (at least 2
quotes) 1
X
$25,000- $50,000
• Sealed Bids or Direct Negotiation (at least 2
quotes or sealed bids) 1
• RFPs (Best Value optional), or Cooperative
Purchasing Contracts that comply with bidding
process (if applicable)
• *Competitive bidding is allowed but not required.
X X
$50,000- $175,000
• Sealed Bids or Direct Negotiation (at least 2
quotes or sealed bids) 1
• RFPs (Best Value optional), or Cooperative
Purchasing Contracts that comply with bidding
process (if applicable)
*Competitive bidding is allowed but not required.
X X X
$175,000+
• Sealed Bids or
Cooperative Purchasing Contracts that comply with
bidding process (if applicable)2 X X X
1 Quotes must be kept on file for at least one year
2 Contracts in excess of MSS 471.345 that include labor require a performance and payment bond
31 | Page
Purchasing Thresholds
All expenditures up to $25,000 must be within the limits established by the department budget.
There are six basic thresholds of dollar amounts that have been established either by policy,
City Code or statutory authority for the purpose of purchasing City goods and services.
Purchasing Thresholds
MATERIALS – SUPPLIES – EQUIPMENT - NON-PROFESSIONAL SERVICES - CONSTRUCTION
Purchase
Level (1)(2)
Purchase
Process
Required
Approving
Authority Notes
$0 -
$25,000
Quotes Department
Head
• At the point of sale, the receipt must be signed by the individual
purchasing the item.
• The receipt must be coded prior to submission to Finance.
• For an item between $0 and $10,000, Quotes are not required.
• Purchases can be made on the open market and verbal quotes are optional.
• For an item costing between $10,001 and $25,000, the shall request price
quotations from at least two sources, when practical, and shall place the order
at the lowest quoted.
• Products or services quoted shall be the same or similar of comparable quality
from each vendor.
$25,001 -
$50,000
Quotes City
Manager
• The City Council will grant the City Manager the authority to make or execute
purchase contracts for routine services, equipment, supplies and commodities
for which the cost does not exceed twenty thousand dollars ($50,000).
• The City shall make the contract by sealed bids or by direct negotiation, by
obtaining two or more quotations for the purchase, when practical, and without
advertising for bids or otherwise complying with the requirements of
competitive bidding.
• Products or services quoted shall be the same or similar and of comparable
quality from each vendor.
• The City must consider the availability, price and quality of supplies, materials,
or equipment available through the state's cooperative purchasing venture
before purchasing through another source.
• If a cooperative purchasing agreement is in place, quotations are not needed.
$50,001 -
$175,000
Council
Resolution
City
Council
• The City shall make the contract by sealed bids or by direct negotiation, by
obtaining two or more quotations for the purchase, when practical, and without
advertising for bids or otherwise complying with the requirements of
competitive bidding.
• Products or services quoted shall be the same or similar and of comparable
quality from each vendor.
• The City must consider the availability, price and quality of supplies, materials,
or equipment available through the state's cooperative purchasing venture
before purchasing through another source.
• If a cooperative purchasing agreement is in place, quotations are not needed.
Above
$175,000
Sealed Bids/
Council
Resolution
City
Council
• Competitive bidding is required for the following contracts:
o Contracts for the sale, purchase, or rental of supplies, materials, or
equipment.
o Contracts for the construction, alteration, repair, or maintenance of
real or personal property.
• The City must consider the availability, price and quality of supplies, materials,
or equipment
1The estimated cost is close to one of the thresholds, you will follow the requirements for the higher threshold.
2The purchase level is based on the gross purchase price; not net of an asset trade-in.
3 When quotes are received, they will be kept on file for at least one year
4 Purchase order required only for capital purchases (>$5000).
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Solicitation
Policy
If the City uses a consultant to prepare or assist in the preparation of a Statement of Work or a
Request for Proposals, that consultant shall not be permitted to submit a proposal. Deviations from
this policy require the approval of the City Manager.
Notice of Solicitation of Bids
A formal sealed bid procedure is required for all purchases that are estimated to exceed the State
Statute MSS 471.345, except for purchase through a cooperative purchasing contract (see below). A
published (412.311) notice of the bid is required in the official city newspaper at least ten (10) days in
advance of the bid opening, or in advance of the City Council meeting. This allows for a thorough
review and retabulation of the bids and to allow for reference checks as appropriate. All bid openings
are to be administered by the originating department. The preparation of all specifications and
required authorization is to be the responsibility of the originating department.
The published notice must contain the following:
• A description of the project or the purchase
• The availability of specifications including the location, for example, Office of the City Clerk,
etc.
• The last day for submission of bids and the place where they are due
• The time and place for opening bids
• A statement reserving the right of the City to reject all bids
A recommendation can then be made to the City Council and the City Council will award or deny the
contract. Bids rejected by council must be kept on file for 6 years.
Government Purchasing Organizations
Certain governmental units form purchasing organizations to obtain group-pricing discounts. The City
may be eligible for participation in some of these programs and individuals are encouraged to obtain
quotes from suppliers in these programs.
Following is a list of purchasing cooperatives of which the City is a member:
State, County and Other Cooperative Purchasing Contracts
1. The Cooperative Purchasing Venture (“State Contract” or “CPV”)
Cooperative purchasing contracts provide an opportunity for the City to purchase supplies, materials,
or equipment (but not services) at reduced costs. This enables the City to buy goods and services
under the terms of contracts already negotiated by the State of Minnesota. The Cooperative
Purchasing Contracts operate without regard to the competitive bidding requirements of the Uniform
Municipal Contracting Law if the purchase is through a national municipal association’s purchasing
alliance or cooperative created by a joint powers agreement that purchases items from more than one
source on the basis of competitive bids or competitive quotations that complies with State Statute.14
The Cooperative Purchasing It is a members-only joint powers program operated by the Minnesota
Department of Administration, Materials Management Division.13 The CPV allows There is currently
no fee to join. For those contracts, a municipality must “consider the availability, price and quantity of
supplies, materials, or equipment available through the state’s cooperative purchasing venture before
purchasing through another source.”12
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12 Minn. Stat. § 471.345, subd. 15.
13 See Minn. Stat. § 16C.03, subd. 10.
IF it is determined that a product/service is on a state contract, vendors will be told that the purchase
will be made using that contract. When completing the purchasing paperwork, note that the purchase
is per state contract and indicate the contract number.
14 Minn. Stat. § 471.345, subd. 15.
Vendors will often contend that the City can purchase from them without bidding because
they are on the “state contract” or they will sell at the state contract price. Beware of these
approaches. Verify both the vendor and the specific product/service is listed on the state
contract. It is likely that not all of a vendor’s products/services have been selected to be on
the state contract. If a vendor is not on the state contract, but will match the state contract
price, this action does not exempt the City from following the competitive bidding laws. For
additional information, visit the Cooperative Purchasing Venture website at
http://www.mmd.admin.state.mn.us/cpv2.htm
2. Hennepin County Cooperative Purchasing Contracts
The City participates in the Hennepin County Cooperative Purchasing Program. In order to
participate, submittal of a checklist anticipating estimated quantities prior to the bidding process
is required. If the City has filled out a checklist, it is obligated to purchase the item from the
county for the duration of that particular contract, as outlined in the contract specifications.
3. Sourcewell (Joint Powers Member)
Any Joint Powers Purchasing Entity of which the City is a member provides for purchases.
• https://www.sourcewell-mn.gov/
• GSA’s Cooperative Purchasing Program. (www.gsa.gov/cooperativepurchasing)
4. U.S. Communities Government Purchasing Alliance
The City participates in the U.S. Communities Government Purchasing Alliance
http://www.uscommunities.org/. See the Fleet Services Supervisor for further information.
• US Communities Government Purchasing Alliance.
https://www.uscommunities.org/resources/state-statutes/mn/
5. National IPA
The City participates in the National IPA cooperative purchasing organization.
http://www.nationalipa.org. See the Fleet Services Supervisor for further information.
1. National Intergovernmental Purchasing Alliance
(NIPA). www.nationalipa.org/agreements
2. Cooperative Purchasing Connection (CPC). Http://www.purchasingconnection.org//site/
3. National Cooperative Purchasing Alliance (NCPA). http://www.ncpa.us/
6. Great Lakes GPO
The Great Lakes GPO is a fire service program open to all Cities.
□ For all other cooperative purchasing alliances, contact the Finance Department to verify
that they meet the criteria before acquiring the item.
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Federal purchases
Under uniform grant guidance (2 CFR 200.317–326) there are additional procurement requirements
that need to be considered when making purchases related to a federal program. Five procurement
methods are identified including: micro-purchase (<$3,500), small purchase procedures (<$175,000),
sealed bid (>$175,000), competitive proposal (>$175,000), and noncompetitive proposal (>$3,500).
The general purchasing policy addresses many of these requirements and the City will also consider
the full requirements in relation to each method as described in 2 CFR. The micro-purchase threshold
which is set by Federal Acquisition Regulation at 48 CFR Subpart 2.1 is subject to change with
inflation. The City will follow changes to thresholds as modifications occur. When practicable, micro-
purchasing will be distributed among qualified suppliers.
• Vendors who have contracts with the federal General Services Administration (GSA) Federal
Supply service may pass the established price down to us.
o Still required to obtain quotes and bids in accordance with State Statutes.
• If the purchase price is over $25,000.00, we must follow the MSS 471.345 and receive sealed
bids.
Evaluation of Proposals
General
The need to positively demonstrate that a particular proposer will be awarded the contract is a difficult
proposition because the evaluation must be based on qualitative data. The following guidelines
attempt to provide a systematic approach to the selection of the most deserving proposer.
Selection Team
a. Proposals for services costing up to $50,000 do not require the use of a selection team.
b. Proposals for services costing over $50,000 will always be evaluated by a selection team.
c. The selection team will consist of at least three members who may be from the following:
• The project manager specified in the Statement of Work.
• Representatives of other City functions that have a direct interest in the project and/or
staff members whose expertise will have value in the selection of the proposer.
• Group of peers from other communities with special expertise.
• Other interested parties as identified by the project manager.
o As team chair, the project manager is responsible for:
o The organization of the selection team.
• Providing its members with copies of the RFP, proposals, evaluation forms and other
needed data.
• The scheduling of meetings.
• The scheduling of proposer interviews will the selection team desire.
• Including the consensus of the evaluation team in the recommendation memorandum.
d. Recommendation
Upon completion of the evaluation process, the project manager shall prepare a recommendation for
approval in accordance with the procedures in this section.
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Awarding Contracts
“Best Value” Procurement Alternative
As an alternative, cities and other government entities may use a “best value” procurement process
for “construction, building, alteration, improvement or, repair [and maintenance] contracts.”5 Minnesota
Statute 412.311 allows the City to use a “Best Value” alternative instead of awarding the bid to the
lowest responsible bidder. Responsibility in bids means financial responsibility, but also integrity, skill,
and the likelihood of the bidder doing faithful and satisfactory work. Contact City Attorney in order to
use the best value alternative.
Best value procurement is a process based on competitive proposals that awards the contract to “the
vendor or contractor offering the best value, taking into account the specifications of the request for
proposals, the price and [specific] performance criteria.”
The price and performance criteria may include, but are not limited to:
1) Quality of performance on previous projects.
2) Timeliness of performance on previous projects.
3) Level of customer satisfaction on previous projects.
4) Record of performing projects on budget and ability to minimize cost overruns.
5) Ability to minimize change orders.
6) Ability to prepare appropriate project plans.
7) Technical capabilities.
8) Qualification of key personnel.
9) Ability to assess and minimize risks7
The solicitation document must state the relative weight of price and other selection criteria. The
award must be made to the vendor or contractor offering the best value applying the weighted
selection criteria. If an interview of the vendor’s or contractor’s personnel is one of the selection
criteria, the relative weight of the interview must be stated in the solicitation document and applied
accordingly.8
Personnel administering best value procurement procedures must be trained in the Request for
Proposals (RFP) process for best value contracting for construction projects.9
5 Minn. Stat. §§ 412.311, subd. 2, and 471.345, subds. 3a, 4a, and 5.
6 Minn. Stat. § 16C.28, subd. 1(a) (2). The performance criteria are set forth in Minn. Stat. § 16C.02, subd. 4a, and is described in
solicitation documents. 7 Minn. Stat. § 16C.02, subd. 4a.
8 Minn. Stat. § 16C.28, subd. 1(c).
9 Minn. Stat. § 16C.03, subd. 19.
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Capital Purchases
Fixed Asset (Capital Outlay)
An item is considered a fixed asset or capital outlay item if:
• It is a tangible asset
• It has a useful life of at least one year
• It has a donated value of at least $2,500.00, with the following exceptions:
o Costs and services related to new structure construction or additions to existing
structures
o Costs related to improving or repairing an existing asset, thereby increasing the life
of the asst
o Costs related to acquire land (example: taxes)
o Meet the threshold of Capital Asset and Grants policy
Fixed asset records are maintained for financial reporting as well as general accountability to our
taxpayers. Therefore, any item meeting all of the three criteria identified will be coded as a capital
outlay when purchased.
Real Estate/ Land
Real Estate refers to the purchase of land and buildings. All purchases of real property must follow
State Statutory guidelines and be approved by the City Council. The purchase or sale of real
property is generally not subject to competitive bidding.
Purchase of city vehicles
All costs associated with getting the vehicle out on the road shall be considered part of the total cost.
For fixed asset purposes, licenses, radios, customizing (light bars, squad car build ups, special
shelving in vans, etc), truck boxes and plows are all considered part of the total cost.
The sales tax and licensing of vehicles is not done at the point of purchase, but rather through a Deputy
Registrar Internal Transfer.
Leases and Lease Purchases
All lease agreements need approval through the Finance and City Attorney prior to initiating lease.
The responsibility lies with each department to obtain at least two quotes to ensure the best financing
rates. Lease Performance Bonds are sometimes prudent for Lease Purchases; if you are unsure
whether a Lease Performance Bond will be required, ask your department head to contact the City
Attorney.
Purchase or Lease of Used Public Safety Equipment
In 2011, the Minnesota Legislature granted cities and other local governments authority to lease or
purchase used public safety without bidding in certain specified circumstances. The new statute
provides that a city may acquire by purchase or lease used public safety equipment without
competitive bidding or proposals “if the equipment is clearly and legitimately limited to a single source
of supply, and the contract price may be best established by direct negotiation.”15
The term “public safety equipment” is defined to mean “vehicles and specialized equipment used by
a fire department . . . in firefighting, ambulance and emergency medical treatment services, rescue,
and hazardous materials response.”16
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15 Minn. Stat. § 471.3455; see 2011 Minn. Laws, ch. 33.
15 Another provision of the law allows cities to issue certificates of indebtedness or capital notes to acquire new or used public safety
equipment by lease for a term of up to 15 years. The long-term lease agreement obligation does not constitute debt under other
statutes, and no election is required in connection with the execution of a lease agreement authorized by the new provision. See Minn.
Stat. § 471.3455, subd. 3
Disposal of Equipment
Introduction
This policy establishes the methods for the disposal of surplus City property, police confiscated
property, and recovered property that has been unclaimed for more than sixty days., as required by
Minnesota Statutes § 471.3459. It also governs the disposition, by means other than donation, of
surplus property with an estimated value in excess of the city manager's contracting authority.
Definitions
For purposes of this policy, “surplus property” is any personal property that is no longer useful for a
public purpose due to any number of factors including state of repair, deterioration, replacement by
more current models, etc.
“Eligible surplus equipment” is any surplus property that qualifies for donation under Minn. Stat. §
471.3459.
Disposition of City Assets
The City Manager shall establish procedures for: monitoring city equipment, materials and supplies;
determining what items are surplus property or eligible surplus equipment; estimating the fair market
value of the surplus property or eligible surplus equipment; and disposing of surplus equipment with an
estimated value that is within the city manager's contracting authority, in a manner allowed by law. The
City Manager may, from time to time, recommend to the Council that certain property owned by the
City is no longer needed for a municipal purpose and will be sold.
Procedures
Electronic equipment, telephones, computers, computer peripherals, or mobile devices:
Each department is responsible for identifying when supplies, materials or equipment used by its
department is surplus. Departments will notify the IT manager about surplus electronic equipment,
including telephones, desktop or laptop computers, computer peripherals, or mobile devices; the IT
division is responsible for determining the estimated value and recommended method of disposal for
that equipment. When assigning an estimated value, 2 signatures are required, including 1 of each
director.
Office furniture, artwork, vehicles, heavy equipment or capital assets:
Departments will notify the public works department about all other surplus equipment including office
furniture, artwork, vehicles, heavy equipment or capital assets. The public works director or designee is
responsible for determining the estimated value and recommended method of disposition for that
equipment. The method of disposal of surplus property will vary depending on the type of property and
how the property was acquired. In determining the recommended method of disposition, the IT
manager and public works director or designee may consider all relevant factors, including staff time
and costs involved in alternative methods of disposition, available storage capacity, and electronic
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device security. When assigning an estimated value, 2 signatures are required, including 1 of each
director.
Disposal of property is offered to the general public with the intent of receiving proceeds for its sale.
Confiscated or recovered property will be sold by some type of public offering. The following methods
may be used for disposing of property:
For purposes of this policy, the estimated value of surplus property is the estimated price at which
the property would likely sell in the applicable market, less the estimated costs of sale.
There are three aspects to any disposal of a City asset:
1. Terms of Sale Approval
The sale itself must be approved, either by the City Manager or his/her designee (sales up to
$50,000) or by the City Council (sales over $50,000).
2. Proper Municipal Sale Contract
Just as with purchasing, making a sale is considered entering into a contract. After the Council
has declared the property as surplus, estimated its value, and approved its disposal, the City
Manager (or his/her designee) is authorized to dispose of the property using one of the
following methods:
Permitted Methods of Disposition
Depending upon the value and type of surplus property, the possible methods of disposition
include:
1. Public Auctions or Sales – This may include an auction by the City, a general sale
offered to the public, participating in auctions held by other government units, or the use
of other public auction houses. This method may be used for any type of surplus
property, regardless of estimated value.
• Negotiated sale. This method may be used only for surplus property that has an
estimated value of $25,000 or less.
• Transfer to another government entity. This method may be used for any type of
surplus property, regardless of estimated value. By state law, it may be
transferred for nominal or no consideration if approved by the city council.
• Donation to a nonprofit organization. This method may be used for eligible
surplus equipment, in accordance with Council Policy. It also may be used for
other surplus property that is estimated to have little or no value. (See Section
Below)
2. On-line Auctions or Sales – Various public auction and sales services are available on the
internet providing the opportunity of reaching a large number of bidders.
3. Trade-in – When replacing City equipment, a trade-in offer may be requested from the
vendors submitting quotes/bids on the new equipment. A trade-in may be utilized when the
trade-in value is determined to be advantageous to the purchase price or a better value than
other types of disposal. This method may be used for any type of surplus property, regardless
of estimated value.
4. Quotations or Bids – The City may request quotations or bids on used City equipment. This
method will be used when an individual sale of specific equipment is determined to be
advantageous to the sale price. This method may be used for any type of surplus property,
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regardless of value, but is used only for items valued at $100,000 or more.
5. Donation - to a nonprofit organization. This method may be used for eligible surplus
equipment, in accordance with Council Policy. It also may be used for other surplus property
that is estimated to have little or no value. (See Section Below)
6. Scrap or Destroy – If property is determined to have only a scrap value, it may be held until
a sufficient quantity exists to warrant sale to a scrap yard. If a department determines that an
item has little or no value, the item may be discarded as trash or may be given to an outside
organization. The benefiting organization may use the item, obtain the item for parts, recycle
components, or scrap the item in an environmentally friendly method. Property will not be given
directly or indirectly to employees unless purchased through a public auction. Notify the Finance
Division to remove the item from the fixed asset system.
7. Dangerous or Hazardous Materials – Items that may be dangerous or hazardous may be
disposed of without any public notice to expedite the removal of the items from City property.
All disposals will be by an environmentally friendly method.
Minnesota State Statute 15.054 states that "property or materials owned by the state or a subdivision,
except real property, and not needed for public purposes, may be sold to an employee of the state or
the subdivision after reasonable public notice at public auction or by sealed bid if the employee is the
highest responsible bidder and is not directly involved in the auction or sealed bid process." (See
Appendix)
Sale at City Auction
Throughout the year the city collects items to be sold at an annual public auction. The listing and
storing of those items must be coordinated through the public works director or designee or, for
electronic equipment, through the IT manager.
A list of all items available for auction will be maintained by the public works director or designee.
Prior to the auction, the public works director or designee will provide the auctioneer with a
description and number of items to be sold and make arrangements for those items to be
transported.
An employee from the city is present the day of the auction to ensure the integrity and accuracy of
the auction. The auction house will forward a tabulation of the bids received along with payment.
The information is reviewed by the public works director or designee and then the payment is
forwarded to the finance department.
Vehicle Auction
The city participates in the county auctions for disposal of vehicles. In preparation for the auctions
the city submits a request for the number of vehicles to be sold at each of the auctions held during
the year. The designation of vehicles to be sold at each auction takes into consideration the need
for spare vehicles during the summer months.
Prior to each auction the city supplies the county with a list of vehicles to be auctioned. The
following information is supplied; vehicle, make, model, year, serial number, approximate mileage
and proof of a clear title.
The week prior to the auction all vehicles are cleaned, and all markings and equipment are
removed from the vehicles. The city marks vehicles with assigned numbers from the county and
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checks with administration to assure the vehicles are insured for transport. The day prior to the
auction, the city delivers the vehicles to the auction site with all paperwork and titles; and registers
correct mileage on the titles and sales receipts.
On the day of the auction the city is required to, in order to participate in the auction, provide two
employees; one to assist the auctioneer and a spotter/runner.
Shortly after the auction the county sends out a statement which breaks down the amount
received for each vehicle auctioned and the amount of the commission kept by the county. A copy
of this statement is sent to the finance department along with a finance provided fixed asset form
indicating that the asset is no longer in the city’s fleet.
Electronic Bidding
Cities have authority for the following procedures related to purchases and sales:
1) Reverse Auction Purchases—Minn. Stat. § 471.345, subd. 16
• A city may contract to purchase supplies, materials and equipment (but not services),
using an electronic purchasing process in which vendors compete to provide the supplies,
materials, or equipment at the lowest price in an open and interactive environment.
2) Electronic Sales - Minn. Stat. § 471.345, subd. 17
• MSS § 471.345 sub 17 states that “a city may contract to sell supplies, materials, and
equipment which is surplus, obsolete, or used, using an electronic selling process in which
purchasers compete to purchase the items at the highest purchase price in an open and
interactive environment.”
Trade-ins
The City Council must approve the disposal of equipment via trade-in (put toward the purchase of
new equipment), just as it approves a regular disposal. A trade-in offer may be requested from the
vendors submitting quotes/bids on the new equipment. A trade-in may be utilized when the trade-
in value is determined to be advantageous to the purchase price or a better value than other types
of disposal. This approval can be done as part of the approval of the purchase of new equipment
(if the purchase is over $50,000). Even if the new purchase is under $50,000 (and doesn’t require
Council approval), the trade-in disposal still must be approved by the Council.
Government to Government Sales
The City may transfer real and personal property to another governmental entity for nominal or no
consideration and without following the process set out under “Proper Municipal Sale Contract” (item
#3) above. Sealed bids or quotes are not required. Council approval of the disposal (item #1 above)
is always required. Council approval of the terms of the disposal (item #2 above) is required only if
consideration is over $10,000. The council may approve both the disposal and disposal terms in one
action. If there is no consideration or consideration is under $10,000, the City Manager may approve
the terms of the disposal.
Additional Disposal Information:
• As is
A donation of surplus equipment is made "as is" with no warranty, guarantee or representation of
any kind, express or implied, as to the condition, utility, or usability of the surplus equipment
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offered. The surplus equipment may be defective and cannot be relied up for safety purposes. A
copy of this policy must be provided to every nonprofit organization that requests a donation.
• Title
The city manager or designee shall cause any title or other ownership documents to be
transferred to the receiving nonprofit organization at the time of transfer. Any fees required to
transfer the surplus equipment are the responsibility of the nonprofit organization.
• Transportation
A requesting nonprofit organization must provide a detailed plan for transporting the surplus
equipment from the city to the nonprofit organization. The receiving nonprofit organization
• Restrictions on Sale:
According to City code, no employee of the City who is a member of the administrative staff,
department head, a member of the Council, or an advisor serving the City in a professional
capacity may be a purchaser of property sold under this Section. Other City employees may be
purchasers if they are not directly involved in the sale, if they are the highest responsible
bidder, and if at least one (1) week's published or posted notice on the city website of sale is
given. No public notice or posting is required for an electronic auction at a nationally
recognized web site. The council may establish conditions on the sale of surplus property,
such as a minimum sales price, to ensure that the city receives a fair price for the property
• Conflict of Interest
Any city employee or official who participates in the decision to donate surplus equipment must
disclose any relationship with the requesting nonprofit organization, including volunteer work or
financial contributions. The city manager, in consultation with the city attorney, may determine
that an employee or official is disqualified from participating in the donation decision, based upon
the level of the person's relationship with of the organization
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Approval Authority
The following chart details the approvals required, depending upon the type of property and method of disposition.
Property type Method of
deposition Estimated Value Approval Needed Notes
Eligible
surplus
equipment
Donation
Less than $10,000 City manager the City Manager may sell it either upon
quotation or in the open market, in the
discretion of the City Manager. If the surplus
property is sold based upon quotation, the
City Manager shall obtain, so far as
practicable, at least two quotations which
shall be kept on file for a period of at least
one year after their receipt.
$10,000 or more City council If Surplus property is estimated to exceed
$25,000 but not to exceed the State Statute, the
City Manager may sell the property upon sealed
bids or by direct negotiation, by obtaining two or
more quotations for the sale when possible. All
quotations obtained shall be kept on file for a
period of at least one year after their receipt.
Other method See “Other
surplus property”
below
See “Other
surplus
property” below
Other
surplus
property
Sale to government
entity for value Less than $100,000 City manager or
delegate
$100,000 or more City council
Transfer to
government entity
for less than its
value
Any value City council
Sale to private
entities or persons
by other sale
methods (bids,
quotes, negotiated
sale, auction)1
Less than $25,000
Nominal or no
value
IT manager or
public works
director
$25,000-$50,000 City manager
$50,000 or more
City
council
1 Sales by bids, quotes or negotiated sales are by the ordinary contracting process. Sales by auction are addressed below. City employees are
prohibited from purchasing any surplus property; except that a city employee may purchase surplus city property sold at public auction or by
sealed bids so long as the employee was not directly involved in the auction or sale process.
2 The trade-in is a requirement in the purchase agreement for the new equipment. The method used to purchase and the authority to approve
the purchase is determined by the estimated cost of the new equipment.
3 Recycling is preferred over disposal in landfills; hazardous materials must be disposed of as required by law.
3 Destruction may be appropriate if necessary, to protect the security of electronic data, or where the cost of securing the data
exceeds the property’s estimated value. Disposal as waste or recycling may be used where the costs of selling the property
exceed the property’s estimated value.
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Donation Policy
Scope
This policy applies to all donations of surplus equipment to a nonprofit organization, regardless of the
estimated value of the surplus equipment. For purposes of this policy, surplus equipment that is
eligible for donation includes:
• equipment used by the public works department that is no longer needed by any city
department and has minimal or no resale value
• cellular phones that are no longer needed by any city department and have minimal or no
resale value; and
• emergency medical or firefighting equipment that is no longer needed by any city department
and either does not meet industry standards for emergency medical services, police or fire
departments or has minimal or no resale value.
To be eligible for a donation, a nonprofit organization must have been formed under section 501
(c)(3) of the Internal Revenue Code and must serve one or more of the following functions: cultural,
historical, educational, safety, social services, environmental or economic.
Procedure
A proposed donation of surplus equipment may be initiated by a city department or by request of a
nonprofit organization. The city manager must evaluate the proposal or request and make a
preliminary decision whether donation is appropriate. If the manager determines that donation is
appropriate, the availability of the surplus equipment for donation must be advertised on the city's
website for at least 5 working days prior to a final decision being made, and nonprofit organizations
that have requested to be notified of possible donations must be notified by email or other
reasonable means. After considering all responses, the city manager must make a decision or
recommendation to the city council, as appropriate to the manager's authority.
Authority
The city manager has authority to approve donations of surplus equipment with an estimated value
of less than $10,000. The city council must approve the donation of any surplus equipment with an
estimated value of $10,000 or more, by majority vote.
Prioritization of donations
If more than one nonprofit organization requests a donation for the same surplus equipment, the city
shall consider factors it deems relevant, including how the surplus equipment will be used, whether
the organization serves city residents, how the donation will serve the city's strategic goals, the
extent to which the donation will serve the greatest number of people, and whether the organization
has previously received a donation.
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Travel Policy
Purpose and Scope
This Policy shall apply to all business trips by City employees, Mayor and Council, all
Commission and Authority members, traveling in an official capacity for City business, the cost
of which is borne in part or total by the City. It is the purpose of this policy statement to establish
adequate internal controls to satisfy Internal Revenue Service (IRS) regulations, state laws, and
to provide a framework to use as a guide to prescribe circumstances for which travel allowances
will be authorized and to provide procedures for reimbursement. Reimbursements can only be
claimed for accommodations and services utilized and when an expense is incurred. Travelers
are expected to utilize the same care when incurring official expenses that a prudent person
would utilize if traveling on personal business. The City will pay or reimburse travel costs. All
persons conducting official City business are expected to show good judgment in the nature and
amount of expenses incurred while conducting City business in accordance with this policy.
Travelers are encouraged to use their City assigned purchasing card for travel expenses other
than meals. A City assigned purchasing card may NOT be utilized to pay for meal expenses
requiring overnight travel but may be used for eligible meal expenses in the metro area. Per
diem allowances based on Federal rates should be used for meals associated with overnight
travel.
Responsibility and Travel Authorization:
City Employees
Travelers (employees and non-employees) are responsible to ensure that travel expenses are
for valid City business-related purposes; are in accordance with City policies and procedures;
and are a prudent use of public and City funds. Individuals traveling on City business are
expected to choose the least costly method of transportation that meets the traveler's
scheduling and business needs.
Travelers must substantiate and document all travel expenses in accordance with City policy
and applicable federal and state laws. In circumstances where the City (via PCard,
reimbursement, etc.) and a third party pay for the same travel expenses, the traveler must
ensure that the duplicate reimbursement is returned to the City within 60 days of completion of
travel.
Travel expenses must be approved by an authorized approver for reimbursement of travel
expenses. Approvers are responsible for validating that all expenses: comply with City policy;
are a prudent use of public and City funds; are appropriately documented; and are submitted
and accounted for in a timely manner.
Budget Approval Departments shall request a training and travel budget that is submitted to the
City Manager and included in the final budget that is adopted by the City Council. The City
Manager is responsible for including a training and travel budget for elected officials within the
final budget that is adopted by the City Council.
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All expenses except those made directly by the City Manager will have two different approval
signatures, one for first level approval and one for second level approval. All second level
approvals must be made by a supervisor. Expense reimbursements to all employees (including
directors and the City Manager) must be approved by an employee in a supervisory level above
the employee requesting reimbursement. No employee may approve their own expenditures.
The Mayor or City Attorney must approve the expense reimbursements for the City Manager.
Advances
Advances are considered an exception and should be submitted to Finance with a reason for
the advance and the approval of the supervisor and department director. All advances will
require a travel expense form to be completed and approved after the travel has been
completed. (The use of a City Purchase Card is encouraged when possible.)
Elected Official Travel
Elected Official Travel
The City recognizes that its elected officials may at times receive value from traveling within the
state or out of state for workshops, conferences, events, and other assignments. To manage
budget resources and provide equal opportunities for all members of Council to participate in
learning opportunities the following statements set forth the conditions for elected official travel.
Out-of-State Travel
The Mayor/Mayor Pro Tem and three Council Members (alternating) have the opportunity to
travel out-of-state (domestically) one time annually, pending Council’s approval. This approach
would allow for the Mayor/Mayor Pro Tem to travel up to four times per term and Council
Members to travel two times per term. If necessary, and if approved by Council, additional out-
of-state travel could be approved for the Mayor/Mayor Pro Tem or Council members using
unused Council travel budget resources or other funding resources (e.g. EDA, Administration
budget, etc.) Expenses for out-of-state travel are encouraged to not exceed $2500.
In-State Travel
Travel for League of Minnesota Cities Newly Elected Official training would be available for all
new Council Members. As resources allow, and if approved by Council, the Mayor and Council
Members can request to travel to in-state conferences annually.
The statements below set forth the conditions under which travel by elected officials will be
reimbursed by the City.
• The event, workshop, conference or assignment must be approved in advance by the City
Council at an open meeting and must include an estimate of the cost of travel, description of
the public purpose and expected benefit.
• Upon returning from an event, workshop, conference or assignment the elected official will
make a public presentation on key learnings within 45 days.
• No reimbursements will be made for attendance at events sponsored by or affiliated with
political parties.
• Travel costs will be reimbursed in accordance with the Travel Costs section of this policy.
• Requests for reimbursement must be submitted with appropriate receipts on a signed travel
expense form to the Finance Department for review and payment.
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• Elected officials appointed to serve on a National League of Cities Policy or Steering
Committee will be allowed to attend both the Congressional City Conference and the
Congress of Cities.
• When feasible, a city vehicle should be considered for in-state transportation needs.
Extending Business Travel with Personal Travel
When a Traveler combines personal and business travel, reimbursable expenses will cease to
accrue as of the expected return date and time. The City will reimburse the Traveler only for the
documented expenses that are directly related to the business portion of the trip. Excess travel
time and activities not required for the business trip purpose shall be at the Traveler’s own
expense.
Transportation
The most economical mode and class of transportation reasonably consistent with
scheduling needs and cargo space requirements must be used, using the most direct and
time-efficient route. Government and group rates must be used when available.
Air Transportation
• The cost of airline tickets will be reimbursed or paid for when traveling on City business. It is
expected that city officials will travel by coach or economy class.
• Travel by air is limited to the lowest, non-refundable, coach/economy class fare available at
time of booking. Travelers may select their seat to another seat within coach/economy (exit
row, aisle seats or "extra leg room") on any flight, when no other coach/economy seats are
available, or it better meets the traveler's needs.
• When the total flight time, excluding layovers, from departure to arrival is 8 or more hours
(including connecting domestic legs), travelers may, with preapproval from their unit,
upgrade from coach to the next most economical class of travel over coach (business class
in most cases, first class in cases where business class is not offered).
• Travelers may not travel using a private plane or non-approved air charter unless the City
Risk Management Office grants an exception in advance of the travel. If the traveler does
not obtain an exception, the City will not reimburse the unapproved transportation expenses.
• Employees are prohibited from piloting personal or leased aircrafts while on City business
travel. If they choose to do so, the City will not consider the traveler to be acting in an official
capacity of the City nor will the City reimburse the traveler for any related expenses.
• It is recommended that no more than 20 City staff, or Regents fly on the same plane at the
same time.
Airport Parking / Baggage
• Long-term parking must be used for travel exceeding 24-hours. The maximum
reimbursement rate, regardless of where you park, is the long-term parking lot parking rate
at the airport they are flying out of.
• Parking at the destination hotel or business site is reimbursable and limited to the lowest
daily rate
• Baggage fees is reimbursable
• Valet parking is not reimbursable
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Accrual and Use of Frequent Flyer Miles
• In accordance with Minnesota State Statute, 15.435, frequent flyer miles or any other benefit
issued by an airline must accrue to the benefit of the City whenever City funds are used to
pay for airline travel, regardless of the origination of those funds (e.g., from state or federal
grants, contracts, or appropriations, or private donors.) City employees may not use these
miles for their personal travel.
• City employees, rather than departments, are responsible for tracking miles earned with City
funds, and providing records of such tracking upon request. When they have accumulated
enough frequent flyer miles to earn free travel, employees must use the miles for City travel.
Automobile
Automobile mileage will be reimbursed at Internal Revenue Service rates presently in effect
(see www.irs.gov ) *These rates are designed to compensate the driver for gasoline, insurance,
maintenance and other expenses associated with operating the vehicle. This amount does not
include bridge and road tolls, which are reimbursable. Damage to a traveler's personal auto is
the responsibility of that individual or his/her insurance company.
• City Vehicle: When traveling in a City vehicle, the Traveler should use a City assigned
purchasing card for fuel expenses or one’s own credit card if a City purchasing card is not
available. Due to potential liability considerations, transportation of family members not on
official City business is prohibited in City vehicles.
• Personal Vehicle: When personal vehicles are used as a mode of transportation for travel
within the five-state region (Minnesota, North Dakota, South Dakota, Wisconsin, and Iowa),
reimbursement will be made at the mileage or allowance rate in effect at the date of travel.
Payment of mileage will be based on the most direct route from the point of departure to the
point of destination. Please refer to the City’s Mileage Policy. The City is not responsible for
damage to one’s personal vehicles while on official business, as the Traveler’s vehicle is not
covered by the City’s insurance coverage. The Traveler must maintain appropriate
insurance when using personal vehicle for business travel.
• Car Rental: The traveler must have approval for a rental car, as described above, in order
to be reimbursed for rental car parking. Rental rates that are equal or less than those
available through the State shall be considered the most economical and reasonable for
purposes of reimbursement under this policy.
o No personal use of car rental is allowed to be claimed.
o The City’s automobile insurance coverage applies to rental vehicles. Under normal
circumstances, should a rental car be damaged while being used for business
purposes, the City will defend and indemnify the Traveler against any claims made
by the rental company for damage to the rental car.
o Minnesota law requires one’s personal insurance company to provide coverage
when the rental car is being used for personal activities in most instances.
o Car rental insurance will not be reimbursed by the City. If car rental insurance is
purchased, it would be at the Employee’s personal expense.
o Fuel for a car is reimbursable, however, fuel pre-payment is not allowed and will not
be reimbursed.
• Taxis/Shuttles. The cost of taxis, shuttles or rideshares (Uber, Lyft, Micro mobility, etc.)
fares may be reimbursed.
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Documentation: Itemized receipt from rental agency and payment documentation, if not shown
on the receipt. Fuel receipts must be submitted. Receipts for parking and other transportation
must be submitted.
Parking Fees
If the traveler uses a vehicle on official city business and is reimbursed for mileage, parking
charges may be reimbursed as an incidental expense. Maximum per park with receipt will be
the actual expense.
*Travel Reimbursements must be submitted within 60 days of the expense.
Lodging
Hotel or Motel expenses will be reimbursed or paid for when travel on official City business
reasonably requires an overnight stay. Lodging fees associated with trips for training or
business that are longer than one day and are outside the Twin Cities Metro Area associated
with a single occupancy rate. Lodging reimbursement requests must be accompanied by a
lodging receipt from the hotel, motel, or other commercial lodging establishment.
• Conferences/Meetings. If such lodging is in connection with a conference, lodging expenses
must not exceed the group rate published by the conference sponsor for the meeting in
question if such rates are available at the time of booking.
• Other Lodging. An employee will always stay at a facility that is reasonably priced and
request government or corporate rates. The employee must stay at a licensed lodging
facility and cannot be reimbursed for staying at a non-licensed lodging facility. In situations
where a non-conference domestic lodging rate falls outside of the City guidelines, the traveler
must obtain pre-approval from the appropriate authorized approver by completing the
Request for Lodging Exception form. If the traveler does not obtain prior approval, the
supervisor/manager may deduct the overage from the reimbursement request.
Meals and Incidental Expenses
The per diem allowance is a daily payment for meals and related incidental expenses when
overnight travel accommodations are necessary, in accordance with published federal per diem
rates instead of receipt-based reimbursement. The City intends for its Travelers to pay for
meals, tips and service charges using the current per diem schedules as set by the federal
government. These schedules can be found at: https://www.gsa.gov/travel/plan-book/per-diem-
rates/per-diem-rates-lookup (M&IE column). The Traveler may claim an amount not to exceed
the allowable per diem rate in accordance with the Standard Federal Per Diem Rate Schedule
in effect at the time of travel as published by the U.S. General Services Administration (GSA).
The per diem allowance is separate from lodging, transportation, and other miscellaneous
expenses. The per diem allowance covers all charges, including taxes and service charges
where applicable for:
1. Meals including expenses for breakfast, lunch, dinner, and related taxes (specifically
excluded are alcoholic beverage and entertainment expenses, and any expenses
incurred for other persons) and
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2. Incidental expenses, including:
a. Fees and tips given to wait staff, baggage carriers, maids, and
b. Transportation and tips between places of lodging or business and places
where meals are taken, if suitable meals can’t be obtained at site.
Meals for which the City pays directly, such as meals included in a conference registration fee
or as part of airfare, or hotel costs, must be excluded from per diem and will not be further
reimbursed. The Traveler must note on the expense claim if a meal is included in the cost of
the travel fare, conference fee, or hotel lodging. If a lodging facility provides a hot breakfast,
the breakfast allowance is excluded from the per diem amount. This provision does not apply
to “continental breakfast”. When the Traveler receives a meal at no cost, the Traveler is not
eligible to be reimbursed for that meal and that meal allowance must not be included in the
combined total. On “travel days”, defined as the first and last day of travel (departure and
return), per diem amount equals 75% of total M&IE regardless of departure time.
Reimbursement may be allowed if the Traveler has special dietary needs that cannot be
accommodated by the available meal options included in the conference registration or event
programming. The Department Head reviews the circumstances and determines when
reimbursement is warranted.
If actual expenses exceed the applicable per diem rate, the excess amount is a personal
expense of the Traveler. If actual expenses are less than the per diem rate, the Traveler is not
required to refund the difference to the City.
If Traveler travels on a conference day, Traveler is allowed the full per diem regardless of
departure time.
Travelers should NOT submit receipts for any meal purchases when requesting overnight
travel reimbursements. A City assigned purchasing card may NOT be utilized to pay for meal
expenses requiring overnight travel.
Documentation: Receipts are not required for M&IE
Example 1: Traveler travels to Orlando, FL for a 3-day conference and travels the day before
and after the conference. Lunch is provided for all 3 days. Below is the per diem breakdown for
Orlando based on the GSA schedule:
Traveler’s allowed per diem per day for days 2-4 is $44:
$59 M&IE Total
$15 Lunch
$44 Allowed per diem per day
Since lunch is provided, lunch allowance is deducted from the total and Traveler is allowed $44
per day for days 2-4. On travel days, day 1 & day 5, the Traveler is allowed $44.25 per day as
found on the schedule.
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Other Expenses
• Conference, seminar or convention registration fees may be pre-paid once approval is
received from the Department Head.
• Other expenses such as fees for social events, activities and tour opportunities during the
conference are reviewed on a case-by-case basis. The Department Head will determine if
reimbursement is warranted.
• In unique instances involving lost luggage, Traveler may need to purchase clothing and
toiletries for the duration of their travel. The Department Head will review and determine if
additional costs are reimbursable.
International Travel
For domestic travel purposes, the IRS definition of the United States includes the 50 states and
the District of Columbia. The purpose of travel outside the United States for City business must
be unquestionably professional in content and should only be considered if a similar meeting,
conference, or training of similar quality cannot be found within the continental limits of the
United States.
The per diem rates when traveling abroad are determined by the US Department of State and
can be found at https://aoprals.state.gov/web920/per_diem.asp.
For foreign travel, all reimbursable expenses that were not paid using a credit card or US
currency must be converted to US currency before listing them on the travel expense claim.
City Reimbursement of Travel Costs that do not Require Overnight
Travel
Travel plans involving expenses that do not require overnight travel accommodations will be
reimbursed based on actual cost substantiated by appropriate receipts. This includes training or
meetings within the metro area.
Non-Reimbursable Expenses
Examples of non-reimbursable personal expenses include, but are not limited to:
1. The personal portion of any trip;
2. Political fundraising or charitable contributions or events;
3. Family expenses, including partner’s expenses when accompanying a city official on
City related business, as well as children- or pet-related expenses;
4. Entertainment expenses, including theater, movies (either in-room or at the theater),
sporting events, travel gym, massage and/or golf related expenses, other cultural
events or personal reading material;
5. Alcohol/personal bar expenses;
6. Non-mileage personal automobile expenses, including repairs, traffic citations,
insurance or gasoline; and
7. Personal losses incurred while on City business, such as clothing and personal
effects.
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Documentation
All employees are required to provide the following documentation for all expenditures: (Unless
following Per Diem)
• Itemized receipt
• Purpose for the expense
• In addition, if the expense is meeting-related:
o Specify attendee and employee or non-employee
o Relationship of non-employee to the meeting
o Reason that the meeting was not possible during business hours, if applicable
Violation of the Travel Policy
Use of public resources or falsifying expense reports in violation of this policy may result in any
or all of the following:
1. Loss of reimbursement privileges,
2. Demand for restitution to the City,
3. Disciplinary action,
4. Civil penalties of up to $1,000 per day and three times the value of the resources
used, and
5. Prosecution for misuse of public resources.
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Mileage Reimbursement Policy
Purpose and Scope:
The purpose of this policy is to define the terms and conditions under which the City will
reimburse employees when using their personal vehicles while engaged in City business. The
City encourages the use of city vehicles whenever possible. This policy shall also apply to
elected officials and board/commission members, but only when traveling outside of the seven-
county metro area while engaged in City business.
Policy
Employees using their personal vehicles while engaged in City business are entitled to
reimbursement for the lesser of ;1) miles actually driven to and from a meeting, training, or
temporary work location; or 2) the miles that would have been driven had the employee traveled
directly from and returned directly to their City workspace. Mileage Reimbursement is not
applicable to any employee receiving a monthly car allowance.
The business mileage reimbursement is clarified in the following two examples:
• An employee is attending an all-day training session that is 15 miles from his or her
workspace at Community Center but only 10 miles from his or her home. The employee opts
to drive directly from home to the training and directly back home at the end of the day,
without going to his or her workspace at Community Center. This employee would be
eligible for reimbursement for 20 miles total (10 miles each way). Another employee who is
based at Community Center lives 25 miles from the training and also drives directly from
home to the training and back again. This employee would be reimbursed for 30 miles total
(15 miles each way), because the distances from Community Center to the training is the
lesser of the two amounts. The principle is that the City will not reimburse more than the
actual miles driven, nor will it reimburse more than the mileage from Community Center to
the event simply because an employee happens to live further out.
• A second example would be an employee traveling from home to his or her regular
workplace at City hall and then leaving mid-day to attend a work-related function 12 miles
away in Minneapolis. The employee then drives directly home after the function, which is a
distance of 15 miles. This employee would be eligible for reimbursement for a total of 24
miles – the actual miles traveled to the event and an equivalent amount back, because that
is the lesser of the distance back to City hall and the distance to their home.
Procedure
1. Employees seeking mileage reimbursement are responsible for submitting a mileage
reimbursement form within 60 days. This mileage reimbursement claim form is required for
federal accountability requirements and allows the reimbursement to be nontaxable to the
employee.
2. The supervisor is responsible for reviewing mileage reimbursement claim forms for
accuracy prior to approving in a timely manner.
3. Mileage reimbursement rates are set by the City of Brooklyn Park to coincide with the
standard rate at the time of travel allowed by the IRS which changes annually.
4. The mileage reimbursement is cut by Accounts Payable and sent to the employee.
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216348v2
PURCHASING POLICY
City of North St. Paul
Adopted on August 4, 2020
Amended on October 26, 2021
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Purpose
In order to have consistency and uniformity in the purchasing practices of the City, it is essential for
those authorized to purchase goods or services to have a clear understanding of the purchasing
policy and its requirements.
The following information is intended to serve as a guide for purchasing practices.
This purchasing policy was created to:
• Clarify and reconcile the complex requirements of state and federal purchasing
law, various departmental procedures, and the finance department processes.
• Provide a comprehensive resource book for staff to be effective and efficient when
making purchases.
• Standardize purchasing and payment methods to expedite the purchasing process.
• Assure the City Council and City Manager that adequate controls over purchasing are well
established and adhered to.
The standards in this policy are minimum standards to ensure fiscal responsibility. Departments may
set more restrictive procedures to meet their own budgetary accountability.
Quick Reference Guide
Value of Purchase Quotations Needed Payment Request Options Approvals Needed Prior to Purchasing
Less than $2,000 Pursue an open-
market best price
purchase
Credit Card
Charge Account
Check Request
Department
Finance
City Manager
City Council
X
$2,000-$9,999 Pursue an open-
market best price
purchase
Check Request Department
Finance
City Manager
City Council
X
$10,000-$25,000 Two written
quotes or RFPs,
when possible,
Otherwise
pursue an open
market best
purchase.
Check Request Department
Finance
City Manager
City Council
X
X
X
$25,001-$174,999 Two written quotes
or RFPs, when
possible.
Otherwise pursue
an open market
best purchase.
Check Request Department
Finance
City Manager
City Council
X
X
X
X
Greater than
$175,000
Sealed Bids Check Request Department
Finance
City Manager
City Council
X
X
X X
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Notes:
• If a cooperative purchasing agreement is in place, quotations are not needed.
• All purchases must be approved as part of the annual budget or within the Capital
Improvement Program. The level of budgetary controls more restrictive than this policy are
established at the department level. Expenditures for departments that exceed appropriations
are not authorized unless additional revenue sources, unspent appropriations, or fund
balances are identified and available.
• Departments are responsible for collection and retention of all bids, quotes, and cooperative
purchasing agreements used in the purchasing process.
• As a Plan B City, State Statute 421.691 designates the manager shall be the chief purchasing
agent of the City. All purchases no matter the amount are subject to audit and approval by the
Council as provided in Minn. Stat. § 412.271. Purchases and contracts totaling more than
$25,000 must be authorized by council.
• Purchasing procedures for federal grants are outlined in Appendix C.
• For any purchases that have subsequent increases in cost (i.e. change orders), the increases
are to be approved in accordance with the Quick Reference Guide outlined on page 2 for the
total contract price (original plus subsequent increases). This may result in additional required
approvals or quotations needed. For contracts that were originally less than $10,000 but then
later is increased above $10,000 but below $25,000 the City must solicit at least two quotes for
the remaining work, when possible.
• Subsequent increases to the contract price (change orders, amendments) are only allowed for
items consistent with the specifications of the original contract. If the increases are not in the
specifications of the original contract, the contractor or employee must include detailed
reasoning for its inclusion, and the approval level, per the Quick Reference Guide on page 2,
and must consider obtaining additional quotes, sealed bids, or request for proposals for these
increases.
Public Purpose Expenditures
City funds must not be used for expenditures that have not been authorized in the adopted budget.
All expenditures must be made by City employees and must be for a public purpose. An
expenditure is made for a public purpose if it meets all of the following criteria:
• It will benefit the community as a body;
• It is directly related to functions of government; and
• It does not have as its primary objective the benefit of a private interest.
Guidelines Regarding Certain Employee Expenditures
To ensure City funds are only used for public purposes in regard to certain employee expenditures,
City employees must observe the following guidelines:
• Expenses Related to Work Assignments
o The City may pay reasonable expenses directly related to the performance of an
official City activity including expenses for travel, lodging, meals, and incidental
expenses that are directly related to the performance of an employee’s official job
duties for the City.
• Employee Safety Programs
o The City may pay reasonable expenses directly related to the operation of an
employee safety program when the program is required by law or the benefit of the
program is clearly demonstrated and a written outline of the program is approved by
the City Council.
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• Employee Training and Development Programs
o The City may pay reasonable registration, tuition, and travel expenses for a
conference, seminar, workshop, or similar employee training (internal or external) or
development opportunity when it is directly related to the performance of the
employee’s official job duties for the City.
o All training and travel, budgeted or unbudgeted, must be pre-approved by a
department head or the City Manager.
• Employee Wellness and Recognition Programs
o The City may pay reasonable expenses related to employee wellness and recognition
programs, including non‐monetary service awards to recognize employee
performance and length of service. Any such program shall be outlined in writing and
approved by the City Council. A program primarily of a social nature, however, does
not qualify. Further, the City shall not pay for spouses or third parties to attend any
wellness or recognition event.
• Meals and Refreshments
o The City may pay reasonable meal and refreshment expenses when the meals or
refreshments are provided as part of one of the following:
a structured agenda of a conference, workshop, seminar or meeting when the
employee is authorized by the City to attend and the topic relates to the official
business of the City;
a City sponsored meeting, conference, or workshop when the employee is
required by the City to attend and the majority of the participants are not City
employees;
a City‐sponsored event where registration fees are charged and the majority of
the participants are not City employees;
an official meeting of the City Council or any official meetings of City Council
committees, task forces, work group, or advisory committees, provided the
provision of meals or refreshments is necessary to sustain the flow of the
meeting and to assist the participation of the attendees; or
a City or department-wide staff meeting when the meals or refreshments are an
integral part of the formal meeting or training and are necessary to sustain the
flow of the meeting, to retain the captive audience, and to assist the
participation of those employees and attendees..
Prohibited Expenditures
Following is a list of specifically prohibited expenditures. Note this is not a complete listing.
Alcoholic Beverages Dues to Social Clubs Personal Purchases Greeting/Sympathy cards Pictures, Artwork, Décor Employee Parties (including holiday parties)1 Gifts of any kind Refreshments for Routine Meetings2 Holiday Decorations Entertainment Decorations for office Contributions or Donations Flowers (not for public purpose) Lobbying
1 This item does not prohibit employee recognition and wellness programming.
2 This item does not prohibit refreshments otherwise allowed under the “Meals and Refreshments” section on page 5 of
this policy.
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Cooperative Purchasing
The City may increase savings from bulk discounts by making purchases jointly with one or more
governmental units through joint powers agreements. Under these programs, several governmental
units can enter into an agreement to authorize one party to solicit bids and provide for the purchase
at the option of each participating governmental unit. Once the governmental units agree on the
specifications of the item, one party may advertise for bids on behalf of all the parties that participate
in the agreement. Rather than specify a number of items, the advertising participant will advertise
for a range of quantities estimated for the entire group. Each participating unit can make the final
decision on whether to purchase the items from the successful bidder.
Emergency Purchases
Emergency situations may arise where the normal purchasing process cannot be followed for the
procurement of goods and services. Emergency purchases are those made by department heads
where an immediate purchase is essential to correct a situation, which would adversely affect the life,
health, or safety of the citizens.
Whenever possible the current purchasing policies and procedures should be followed even when an
emergency is declared, but as described above if the emergency requires speedy action essential to
the health, safety, and welfare of the community and if there has been an emergency declaration, the
standard purchasing policies and procedures can be waived in accordance with Minnesota Statute
§12.37.
Every effort shall be made to contact the City Manager whether the emergency occurs during or after
normal working hours. On the next business day, such emergency shall be documented with the City
Manager and Finance Director.
In the event of a prolonged emergency, Minnesota Statute §12.29 gives the Mayor the authority to
declare a local emergency for up to three days, which period may be extended by the City Council.
During such an emergency, if authorized by City Council, the City is not required to use the typically
mandated procedures for purchasing and contracts. During that time, the governing body may waive
compliance with the prescribed purchasing guidelines, including compliance with Minnesota Statute
§471.345, Uniform Municipal Contracting Law.
Either after the emergency or periodically during the emergency, the City Manager will submit a
written report detailing the emergency and the nature of emergency purchases that were not
compliant with the typical purchasing process to be approved by the City Council.
Preapproved Purchases
The City Council has pre-approved payment for items such as utility accounts and payroll transfers
that occur in the normal course of business even though they may exceed $20,000. These are
contractual accounts for services that are approved as part of the budget process. The exceptions
that fall under this situation include:
• Utility Bills (fuel, natural gas, telephone)
• Metropolitan Council Environmental Services
• Fringe benefits and other payroll related items
• Investments
• Liability insurance
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216348v2
• Refuse hauler and tipping fees
• Automotive gasoline and diesel fuel
• Professional services under contract approval by the City Council
• Copier Leases
• Mandated licenses, permits, and fees to the State and Federal Government
• Electric wholesaler
• Fiber Optic wholesaler
• Debt Service Payments as listed in the Debt Service Schedule in bond documents
Decentralized Purchasing
The City of North St. Paul has a “decentralized” purchasing program where individual departments
are responsible for making their own purchases. There are a few exceptions including State Bid
vehicles and other similar state or cooperative purchasing agreements. All other purchases should
follow the rules below:
• Determine the need for commodities or services.
• Research the cost of the purchase and determine proper purchasing alternative.
• Determine the appropriate account coding and whether there are sufficient funds available in
that budget line item.
• Follow the quick reference matrix to determine preapproval process. If bids or quotes are
required, ensure these are included with the preapproval process.
• Make sure all approvals are obtained prior to purchasing.
• Upon receipt of the invoice, make sure all goods or services have been received and are in
satisfactory condition prior to paying the invoice.
• Code and approve the invoice for processing.
• Accounts payable listing is approved by City Council.
• Payment is made by the Finance Department.
Local Vendors
City employees will make every effort to purchase goods and services from local vendors and award
purchases to those vendors when cost effective. This can be accomplished by insuring that local and
state vendors who have goods or services available are included in the competitive shopping process
that will precede most purchases.
Ethics / Relations with Vendors
The City of North St. Paul holds its employees to the highest ethical standards. Purchases shall be
conducted so they foster public confidence in the integrity of the City’s procurement system and
encourage open and free competition among prospective suppliers. In keeping with these values,
employees must avoid the following practices when making purchases on behalf of the City:
• Circumventing competitive bidding requirements – Examples include but are not limited to:
o Splitting purchases so that they can be made through several small purchases
o Using the emergency procedure process when no true emergency exists
o Using a “sole source” exemption when competition is available
• Denying one or more vendors the opportunity to bid on a contract – Examples include but are
not limited to:
o Using overly-restrictive specifications
o Pre-qualifying bidders on a discriminatory basis
o Removing companies from a bidders list without just cause
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216348v2
o Requiring unnecessarily high bonding
• Giving favored vendors an unfair advantage – Examples include but are not limited to:
o Providing vendors with information regarding their competition’s offers in advance of
a bid opening
o Making information available to favored vendors and not to others
o Giving un-favored vendors inaccurate or misleading information
• Accepting gifts from vendors
o Minnesota Statutes §471.895 prohibits government employees from receiving gifts
except where they are included as part of the cost of a product, good, or service
provided.
• Receiving any remuneration (i.e. kickback, bribe, or rebate) directly or indirectly, overtly or
covertly, in cash or in kind, in return for the City recommending, purchasing, leasing,
ordering, or arranging a service or purchase of goods.
Charge Accounts
The City may open charge accounts with vendors regularly used. Charges on charge accounts are
limited to purchases under $2,000 per the Quick Reference Guide on page 2. The use of charge
accounts is not a method of creating debt, therefore all balances shall be paid off on a monthly
basis without delinquency fees or finance charges. Failure to avoid finance fees will require the
discontinued use of the charge account.
The City will provide individual vendors with a list of approved city employees who may use charge
accounts. These approved lists are to be updated by department heads for any changes in
employment and reviewed annually. Only City employees are allowed to use charge accounts.
Credit Cards
• See Appendix A and Attachments A.1, A.2, A.3, and A.4
State of Minnesota Bid, Quote, and Contract Laws
• See Appendix B
Federal Grant Procurement Requirements
• See Appendix C
Single/Sole Source Justification Form
• See Appendix D
Professional / Technical Contract Single Source Procurement
• See Appendix E
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Appendix A:
Credit Cards
The City has the authority to make purchases using credit cards under Minnesota Statute
§471.382. The use of credit cards by staff for City business is not a method of creating debt, therefore
all credit card balances shall be paid off on a monthly basis without delinquency fees or finance
charges. Failure to avoid finance fees will require the discontinued use of the credit card. These
guidelines are intended to protect the City and the employee. All employees entrusted with a credit
card shall be responsible for complying with these directives.
Authorized Employees
The Finance Director is the Chief Financial Officer of the City in the eyes of the bank. So, the Finance
Director is the only individual with the authority to assign, remove, or modify users and account
balances for the City credit card program. Employees authorized to use a credit card must sign a Credit
Card User Agreement, Attachment A.1, noting card policy, procedures for use, and card holder
responsibility. To request a credit card, the Credit Card Request Form, Attachment A.2, must be
completed and sent to the Finance Director. The Finance Director will maintain a listing of accounts,
limits, and personnel authorized to purchase with the respective credit cards. Credit cards must be kept
in a secure location when not in use. Only City employees are authorized to use City purchasing
cards. Attachment A.3, Credit Card Purchase Request Form, must be filled out for each purchase
made on a purchasing card.
The only person entitled to use a purchasing card is the person whose name appears on the face of the card. If the situation arises that the cardholder must lend the purchasing card to another City employee, a form must be filled out for each transaction including signed approval by the cardholder and signed acknowledgement of purchasing policy by the employee who used the card. See Attachment A.3 for a copy of the Credit Card Purchase Request Form.
Suppliers The credit card is a Visa Card product. Any supplier or merchant who accepts Visa Card can accept the credit card. Lost or Stolen Cards Cardholder employees must keep the credit card in a secure location. When in use the card must only be accessible to the cardholder. If the credit card is lost or stolen the cardholding employee must notify Customer Service immediately at the 24-hour telephone number (1-866-552-8855) and call the Finance Director. The card will be closed and monitored. A new card will be issued if necessary.
Authorized Purchases
Credit cards must not be used for expenditures that have not been authorized in the adopted budget.
Since use of the credit card is restricted to purchases for the City, no non-city use is permitted and all
purchases must be for a public purpose. State Statute provides that if officers and employees make
purchases for the City that are not authorized by the City Council, they become personally liable for
the amount of the purchase.
State Statute provides that claims presented for payment must be in writing and itemized. Department
heads will be responsible for ensuring receipts and invoices meet this requirement and provide them
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216348v2
to the finance department for prompt payment of the credit card statement.
Monthly Statements
Monthly statements will be sent to department heads. Detailed receipts along with general ledger
coding must be provided to the finance department by the 15th day of each month.
Detailed Receipts
o Any items that do not have a receipt must have a Missing Receipt Affidavit (Attachment A.4)
completed or it will be the personal responsibility of the card user.
o Missing Receipt Affidavits must be signed by both the employee and department head with a
complete explanation of the expense and the reason for the missing receipt.
o Failure to submit a receipt for a purchase or failure to complete a missing receipt affidavit will
result in disciplinary action up to and including termination of employment.
Loss of Privileges
Failure to comply with the requirements of this policy will result in immediate revocation of credit card privileges. Here is a non-exclusive list of violations of this policy: o Splitting of charges to avoid the single purchase dollar limit. o Lending the card to a non-employee for use. o Lending the card to another employee for use without completing the Credit Card Purchase Request Form – Attachment A.3. o Failure to submit itemized receipts or a missing receipt affidavit by the 15th day of each month. o Fraud or using the credit card for personal benefit.
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Attachment A.1
Credit Card User Agreement
I agree to the following regarding the use of the Credit Card Policy:
1. I understand that I am making financial commitments on behalf of the City of North St.
Paul and will strive to obtain the best value for the City.
2. I understand that under no circumstances will I use the credit card to make non-city
business purchases, whether for myself or for others.
3. I understand the use of the credit card to obtain cash is expressly prohibited.
4. I have been given a copy of the Purchasing Policy, which I have read and understand the
requirements for credit card use.
5. I understand that the credit card must only be used for expenditures that have been
authorized in the adopted budget.
6. I will follow the established procedures for use of the credit card. Failure to do so may
result in either loss of privileges or other disciplinary actions, including termination of my
employment.
7. I agree that should I willfully violate the terms of this agreement, I will reimburse the City
of North St. Paul for all incurred charges and any fees related to the collection of those
charges.
8. I understand that any fees or interest charged by the card company because of late
payments due to untimely submission of record to the Finance Department will be my
responsibility and will not be paid from City funds.
Employee Name (Print)
Employee Signature
Date
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Attachment A.2
Credit Card Request Form
To: Finance Director
From:
(Department Head)
Re: Request for Credit Card
The following employee is authorized to be issued a City of North St. Paul Credit Card for the
department indicated. The employee is fully aware of the Credit Card Policy and has provided a
signed Credit Card User Agreement form.
Full Name (print):
Signature:
Title:
Department:
Single Purchase Limit:
30-Day Purchase Limit:
I have read the City of North St. Paul Credit Card Use Policy and I understand the responsibility of
purchasing services and supplies using the City of North St. Paul Credit Card Program. I agree to
abide by the policy for the use of a credit card. I also understand that misuse of the card can result
in disciplinary action or may be cause for dismissal.
Signature of the Employee Date
Signature of the Department Head Date
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Fund/Department Requestor Date Card # (Last 4 Digits)
Vendor
Vendor Address
For Product or Supplies Purchases
Product Quantity Product Description Price Each Total Price
For Registrations of Conferences / Meetings / Trainings
Name of Attendee Date of Conf/Mtg Location
Business Purpose of Each Product or Registration:
Is the Purchase
Budgeted:
Yes
No
Account Codes:
If Requestor Does Not Match the Cardholder
Name on Credit Card Date Card Taken Date Card Returned
Cardholder Approval
Attachment A.3
City of North St. Paul
Credit Card Purchase Request Form
For Purchases Under $2,000
I Acknowledge Having Read the Purchasing Policy (Please Sign):
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This is to certify that on________________________ 20______________________________
I paid the sum of $______________for____________________________________________
___________________________________________________________________________
Vendor’s Name_______________________________________________________________
Vendor’s Address_____________________________________________________________
____________________________________________________________________________
ITEMS COST
__________________________________ ______________________
__________________________________ ______________________
__________________________________ ______________________
__________________________________ ______________________
__________________________________ ______________________
__________________________________ ______________________
TOTAL COST ________________________
I further certify that the itemized receipt for this payment has been lost or was not received from the
vendor and that this statement is given in lieu of that itemized receipt to document the expenditure.
I certify that the expenditure incurred was solely for the benefit of the City of North St. Paul. I also
certify that information identified above is valid and accurate.
SIGNED________________________
PRINTED NAME________________________
APPROVED FOR EXPENDITURE: _______________________________
DEPARTMENT HEAD _______________________________
Attachment A.4
City of North St. Paul
Credit Card Missing Receipt
Affidavit
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Appendix B:
State of Minnesota Bid, Quote, and Contract Requirements
The Uniform Municipal Contracting Law, Minn. Stat. § 471.345 sets out procedures that cities must
follow for contracts to sell, purchase, or rent supplies, materials, or equipment, or to construct, alter,
repair, or maintain real or personal property. The estimated amount of the contract dictates which
procedures apply. Of course, estimates should be reasonable. For example, if a city asks for
quotations because it estimates the value of a contract will be below the bid threshold but all
of the quotations are over the threshold, the city should solicit formal bids.
Contracts estimated to have a value over $175,000 must be made by sealed bids, solicited by public
notice, and awarded to the lowest responsible bidder. Bids should be retained for the period specified
in the City’s records retention schedule.
The requirement that the successful bidder be “responsible” protects cities from having to choose
unqualified or unscrupulous low bidders. It allows a city council to consider factors such as the
bidder’s financial responsibility, integrity, skill and ability, and the likelihood that the bidder will do
satisfactory work. A city can even include evaluation criteria for “responsible” bidders in the bid
specifications.
The Minnesota state statute above deems that contracts estimated to be worth more than $25,000,
up to $175,000, can be made either by sealed bids or by direct negotiation based on quotations.
Departments with a purchase between $25,000 and $175,000 should solicit two written quotes or
RFPs, when possible. All quotes and proposals received must be kept on file for at least 18 months.
Each department is responsible for managing these records.
Contracts with estimated values of $25,000 or less may be made either upon quotation or in the open
market. If quotations are used, at least two quotations must be obtained if practicable, and the
quotations must be kept on file for at least 18 months.
Increases to contracted prices must be consistent with the specifications of the original contract. If the
increases are not in the specifications of the original contract, the requested increases must include
detailed reasoning for their inclusion, and those approving such increases must consider obtaining
additional quotes, sealed bids, or RFPs for these increases depending on the levels outlined in the
Quick Reference Guide on page 2.
“Best Value” Procurement Alternative
In 2007, the Minnesota Legislature authorized cities and other government entities to use a “best
value” procurement process for construction, building, alteration, improvement, or repair contracts.
Best value procurement is a process based on competitive proposals (as an alternative to bids) that
awards the contract to the vendor or contractor offering the best value, taking into account the
specifications of the request for proposals, the price, and performance criteria as set forth in Minn.
Stat. § 16C.02, subd. 4a and described in the solicitation document.
The price and performance criteria mentioned in the previous paragraph may include, but are not
limited to:
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(1) the quality of the vendor's or contractor's performance on previous projects;
(2) the timeliness of the vendor's or contractor's performance on previous projects;
(3) the level of customer satisfaction with the vendor's or contractor's performance on
previous projects;
(4) the vendor's or contractor's record of performing previous projects on budget and ability
to minimize cost overruns;
(5) the vendor's or contractor's ability to minimize change orders;
(6) the vendor's or contractor's ability to prepare appropriate project plans;
(7) the vendor's or contractors technical capacities;
(8) the individual qualifications of the contractor's key personnel; or
(9) the vendor's or contractor's ability to assess and minimize risks.
"Performance on previous projects" does not include the exercise or assertion of a person's legal
rights.
The solicitation document must state the relative weight of price and other selection criteria. The
award must be made to the vendor or contractor offering the best value applying the weighted
selection criteria. If an interview of the vendor’s or contractor’s personnel is one of the selection
criteria, the relative weight of the interview must be stated in the solicitation document and applied
accordingly.
Notice of Solicitation of Bids
The notice that bids are being solicited must be published once in the City’s official newspaper at
least ten days before the last day for the submission of bids. As an alternative to publishing the notice
in a newspaper, a city may put the bid notice on its website or in a recognized industry trade journal if
certain steps (described below) are followed. Additional public notice and hearing requirements for
public improvements ordered and specially assessed are provided in Minn. Stat. Chapter 429.
Alternative Dissemination of Bids and Requests for Proposals
As an alternative to publishing them in a newspaper, a city may post solicitations of bids, requests for
information or requests for proposals by using a website or recognized industry trade journals. Printed
and digital publications and websites that contain building and construction news of interest to
contractors in Minnesota or that publish project advertisements or bids for review by contractors or
potential bidders in the regular course of business are “recognized industry trade journals.” The City
must simultaneously publish, either in minutes or separately in a notice published in the official
newspaper, a description of all solicitations or requests so distributed, along with the means by which
the publication occurred. The publication by alternative means must be in substantially the same
format and for the same period of time as a publication in a qualified newspaper.
For the first six months after the political subdivision designates an alternative means of publication, it
must continue to publish solicitations of bids, requests for information, and requests for proposals in
the official newspaper in addition to the alternative method. The publication in the official newspaper
must indicate where to find the designated alternative methods.
If, in the normal course of its business, a qualified newspaper maintains a website, then as a
condition of accepting and publishing public notices, the newspaper must agree to post all the notices
on its website during the notice’s full publication period.
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Electronic Bidding
Municipalities now have authority for the following procedures related to purchases and sales:
1. Reverse Auction Purchases—Minn. Stat. § 471.345, subd. 16
i. municipality may contract to purchase supplies, materials, and equipment (but
not services),
ii. using an electronic purchasing process in which vendors compete to provide
the supplies, materials, or equipment at the lowest price in an open and
interactive environment.
2. Electronic Sales—Minn. Stat. § 471.345, subd. 17
i. municipality may contract to sell supplies, materials, and equipment which is
surplus, obsolete, or used,
ii. using an electronic selling process in which purchasers compete to purchase
the supplies, materials, or equipment at the highest purchase price in an open
and interactive environment.
The Cooperative Purchasing Venture (“State Contract”)
As part of marketing, vendors sometimes say cities can purchase from them without bidding because
they are on the “state contract” or they will sell at the state contract price. Cities should beware of this
approach. The real name of the state contract is the Cooperative Purchasing Venture. It is a
members-only joint powers program operated by the Minnesota Department of Administration. To
purchase through it, cities must join. Cities cannot avoid the normal bidding requirements by simply
purchasing at the state contract price or from a state contract vendor without joining the program and
following its requirements. For additional information, visit the Cooperative Purchasing Venture
website at http://www.mmd.admin.state.mn.us/cpv2.htm.
Cooperative Purchasing
A municipality may contract for the purchase of supplies, materials, or equipment without regard to
the competitive bidding requirements of Minnesota State Statute Section 371.345 (as described in
this policy) if the purchase is through a national municipal association’s purchasing alliance or
cooperative created by a joint powers agreement that purchases items from more than one source on
the basis of competitive bids or competitive quotations.
Responsible Contractor Minimum Requirements
The Responsible Contractor Requirements apply to construction contracts over $50,000 that are
awarded on the basis of bidding or “best value.” The threshold for formal bidding is $175,000 and the
best value alternative is available for contracts over $20,000. Between $50,000 and $175,000 the City
does not have to use the formal bidding process, however if the City does use formal bidding or “best
value” procurement for these contracts they will have to comply with the Responsible Contractor
Requirements.
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The statute sets forth “minimum criteria” for contractors which include such things as compliance with
state workers compensation laws and unemployment insurance laws, federal tax I.D number,
authority to transact business in Minnesota, compliance with Federal Wage and Hour requirements,
etc.
A contractor responding to the City’s contract solicitation must submit a signed statement under oath
of compliance with the minimum criteria identified in this statute.
If that contractor is awarded the contract, then a supplemental verification under oath must be
presented to the City that the contractor has received from all subcontractors’ statements under oath
that they also meet the minimum requirements under this statute.
Prompt Payment to Subcontractors
City contracts that involve a prime contractor must require the prime contractor to pay subcontractors
within ten days of the prime contractor’s receipt of payment from the City for undisputed services
provided by the subcontractor.
The contract must require the prime contractor to pay interest of 1.5 percent per month or any part of
a month to the subcontractor on any undisputed amount not paid on time.
Performance and Payment Bonds
For some contracts, cities must require contractors to provide a performance bond and a payment
bond. This requirement applies to contracts over $175,000 for the performance of public work. The
required performance bond benefits the City by ensuring that the work is completed according to the
terms of the contract, while the required payment bond benefits subcontractors and people who
provide labor and materials, by seeing that their claims for labor and materials are paid. For any
increases, such as change orders, to contracts with performance and payment bonds, City Council
review is required to determine if additional performance and payment bonds are required. City
Council will vote to require or waive such additional bonds.
Retainage
For a contract for public improvement, a public contracting agency may withhold up to five percent of
any progress payment as retainage to ensure satisfactory performance. If it does so, it must release
the retainage no more than 60 days after substantial completion.
“Substantial completion” is the date when construction is sufficiently completed so that the owner can
occupy or use the improvement for the intended purpose. For streets, highways, and bridges,
“substantial completion” is defined as the date when construction-related traffic devices and ongoing
inspections are no longer required.
The City is permitted to continue to withhold up to 250 percent of the cost to correct or complete
known work at the time of substantial completion, and the greater of $500 or one percent of the value
of the contract pending submission of final paperwork.
The amount withheld for cost to correct or complete must be released within 60 days of work
completion. The amount withheld pending submission of final paperwork must be released within 60
days of submission of final paperwork.
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Withholding Certificates
Before a city makes the final payment to a contractor under a contract requiring the employment of
employees for wages, it must make sure the contractor and any subcontractors have complied with
withholding tax laws. Contractors and subcontractors show compliance by submitting a withholding
affidavit to the Minnesota Department of Revenue. This can be done electronically or by mailing a
completed Form IC134, “Withholding Affidavit for Contractors.” If a contractor or subcontractor has
withheld taxes as required, the Department of Revenue will return an electronic confirmation or sign
and return the Form IC134, certifying compliance.
Exceptions to Competitive Bidding
The following are some of the most common exceptions to the competitive-bidding requirements:
• See Quick Reference Table on Page 2 of the Purchasing Policy.
• Non-contracts. An agreement that does not meet the definition of a contract under the
competitive-bidding law is exempt from the competitive-bidding requirements. For example, an
agreement in which a company supplied a special scoreboard system in exchange for the right
to sell or lease advertising space on it was found to be exempt from the competitive-bidding
requirements because it was not a contract for “materials, supplies or equipment.” Likewise,
contracts for refuse hauling and janitorial services were also found to be exempt from the
competitive-bidding requirements because they were not considered to be contracts within the
definition of the competitive-bidding law.
• Electronic reverse-auction purchases. Cities may use an electronic reverse-auction
procedure to contract for the purchase of supplies, materials, and equipment regardless of
their cost. This procedure allows vendors to compete to provide the requested supplies,
materials, or equipment at the lowest selling price in an open and interactive electronic
environment.
• Electronic sales of surplus supplies, materials, and equipment. Cities may contract to sell
supplies, materials, and equipment, which are surplus, obsolete, or unused, regardless of their
cost, using an electronic selling process in which purchasers compete to offer the highest
purchase price in an open and interactive environment.
• Best value contracting. Under certain circumstances, cities may use best value contracting
for construction projects. Best value contracting requires cities to consider two factors as part
of a request-for-proposals process: price and performance. There are additional factors that
may be considered.
• Intergovernmental contracts. Contracts between governmental entities for the sale, lease, or
purchase of real or personal property between federal, state, or political subdivisions.
• Professional services contracts. Professional services, such as those provided by doctors,
engineers, lawyers, architects, accountants, and other services requiring technical, scientific,
or professional training.
• Some group-insurance contracts. Group insurance for 25 or more employees. This type of
insurance must be solicited through requests for proposals. The request for proposals must be
in writing and must include the coverage to be provided, the criteria for evaluation of carrier
proposals, and the aggregate-claims records for the appropriate period. The request for
proposals must be published in a newspaper or trade journal for at least 21 days before the
final day for submitting proposals.
• Real estate contracts. The purchase or sale of real property is generally not required to be
competitively bid.
• Emergency contracts. The emergency-management statutes give cities the ability to declare
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an emergency for a limited period of time. During such an emergency, cities are not required to
use mandated contracting procedures. If the facts of the situation do not indicate that a true
emergency exists, such a contract would likely be void.
• Some intergovernmental construction contracts. A cooperative agreement to construct a
project with the state or with another political subdivision of the state when the other unit does
the construction. This applies only where there is an agreement prior to the initial advertising
for bids on the project.
• Some municipal electric power construction contracts. A city may contract for the
planning, acquisition, construction, reconstruction, operation, maintenance, repair, extension,
and improvement of generation and transmission facilities without using the competitive-
bidding process. The facilities must be located outside of the City’s corporate limits.
• Some fuel contracts. Fuel contracts for generation of municipal power may be made using
direct quotations or competitive bidding.
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Appendix C:
Federal Grant Procurement Requirements
The OMB Uniform Guidance went into effect on December 26, 2014 and applies to awards or funding
increments issued on or after that date. Purchases funded by federal grant funds must adhere to
regulations found in Uniform Guidance as a condition of receiving funds and to meet annual audit
compliance. The OMB Memo M-18-18 increased the micro-purchase threshold to $10,000 and the
simplified acquisition threshold to $250,000 (note, since the State of Minnesota threshold is $175,000,
the City will follow the lower threshold from the State of Minnesota).
Methods of Procurement (see CFR §200.320):
• Micro-purchases - the acquisition of supplies or services, the aggregate dollar amount of
which does not exceed $10,000. Use your own judgment in identifying potential suppliers.
Federal guidance asks that, if possible, spread purchases between multiple suppliers. When
possible, attempt to get discounts. If you are uncertain as to whether or not a purchase
qualifies as a micro purchase or a small purchase, please contact the finance department prior
to making the purchase. For example, installment payments less than $10,000 towards a total
purchase price greater than $10,000 do not count as micro purchases
• Small purchase - the acquisition of supplies, services or equipment in the range of $10,001 to
$175,000. Price or rate quotations must be obtained from an adequate number or qualified
sources prior to making a purchase. A purchase order documenting at least 2 price quotes
and the basis for vendor selection prior to making a purchase is required. Documentation
needs to be in writing from the vendors and can include screen shots from websites, copies of
published price lists and advertised pricing in established magazines or journals. This
documentation should be attached to the purchase order and the buyer should not make the
purchase until the purchase order has been fully approved. If a purchase order is not received
prior to an accounts payable voucher, the Finance department will have the authority to reject
the invoice from being paid against federal funds. If you require assistance in obtaining 2
quotes, please contact the Finance department.
• Sealed bids - For acquisitions costing more than $175,000, bids are publicly solicited and a
firm fixed price contract is awarded to the responsible bidder whose bid is the lowest price.
See appendix B for more detail.
• Competitive proposals - For acquisitions costing more than $175,000, conducted with more
than one source submitting an offer, and either a fixed price or cost-reimbursement type
contract is awarded. Contracts must be awarded to the responsible firm whose proposal is
most advantageous to the City with price and other factors considered.
• Noncompetitive proposals - procurement through solicitation of a proposal from only one
source. A waiver must be granted by submitting the Single/Sole Source Justification Form
(see Appendix D).
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APPENDIX D
Single/Sole Source Justification Form(Form Attached Separately):
There may be times when competitive bids are not appropriate and the requirement for obtaining
them is waived. Failing to anticipate needs resulting from poor planning is not an exception to the
bidding policy. For an exception to be valid, a clear statement of justification for waiving the
competitive bidding process must be submitted in writing for approval by completing the Sole Source
Justification Form.
Situations that would justify purchases without the competitive bid process are:
• The supplier is obviously a sole source for the item. Examples:
o Artwork
o Unusual and not generally available used equipment
o A very specialized piece of scientific equipment
o A specialized service (lobbyist, consultant) when the supplier has a one-of-a-
kind ability to provide the required service due to demonstrably unique
circumstances (knowledge, contacts, experience)
• There is an undeniable compatibility requirement. The item will be hooked up to existing
equipment or the purchase is an upgrade to existing equipment/software.
• There has been an unpredictable emergency and there is no time to bid. Examples:
o Human life, health, or City property is in jeopardy
o Repairs are immediately needed for equipment where delay would lead to
higher expense.
• Subcontracts whereby the agreement to work with another individual or institution was written
into the grant award.
Situations that would NOT justify purchases without the competitive bid process are:
• Supplier is offering a very good deal. While this may be true, federal guidelines require a
competitive bidding process that demonstrates that due diligence was used.
• Long-term need was ignored and now the purchase needs to be made as soon as possible.
Busy schedules do not excuse the City from following federal regulations
• Supplier is very convenient to use. Convenience is not a strong enough factor to allow the
granting of a waiver from the process. An emergency situation must be present.
• The company already started the work. Making such agreements or purchases at a
departmental level is contrary to this policy and federal regulations.
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Appendix E
PROFESSIONAL/TECHNICAL CONTRACT SINGLE SOURCE REQUEST FORM
Submit form to: City of North St. Paul Finance Department
Submit with: Detailed Quote/Scope of Work
DEPARTMENT
PROPOSED CONTRACTOR
Name of company:
Address:
Telephone:
Web Address (if available):
CONTRACT PERIOD
_to _
*The term of the contract must not exceed two years
unless the Council determines that a longer duration is
in the best interest of the City. If you are requesting that
the original contract length be longer than two years,
please attach a written justification.
CONTRACT PRICE
$
DESCRIPTION OF SERVICE REQUIRED:
SINGLE SOURCE CATEGORY
(Check applicable box, attach documentation or provide explanation below)
Legislation or appropriation mandates use of
contractor (Legislation attached)
Expert witness required by AGO (attach documentation)
Mailing lists, subscriptions or media advertising
Warranty voided if service provided by other contractor
Software license renewals, additions or upgrades
available from only one source
Brand compatibility available from only one source
Other proprietary situation
Other
THIS PROCUREMENT IS A SINGLE SOURCE BECAUSE (attach additional page if needed):
NOTE: The following are unlikely to be sufficient single source justifications:
♦ Personal or agency preference for a contractor
♦ Agency perception that the vendor is the best qualified (this should be determined through a competitive process)
♦ Lack of agency planning resulting in limited time to conduct a competitive procurement
♦ Past or existing relationship with the vendor
♦ Special incentive or deal offered (can be assessed in open and competitive solicitation)
♦ Agency convenience
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SEARCH
(Check applicable boxes and describe as indicated)
No search was conducted or necessary because
(explain):
A search was conducted consisting of: (check all that apply)
Market research
Other vendors contacted
Public notice given
Other
RESULTS
AFTER THE SEARCH…
no alternatives were identified
no alternatives were deemed
acceptable (explain below)
Description of search identified above:
PRICE
(Check applicable boxes and provide description below)
Price has been fairly and reasonably established by:
Independent estimate
Comparison to public sector contract pricing
Comparison to previous comparable pricing
Discount off published price
Market survey
Other
Describe methodology and results (attach any written supporting data, e.g. survey or market analysis):
CERTIFICATIONS
I certify:
1) I recognize that state law requires the use of competitive solicitations unless exempted
by law. I have reviewed the information and materials relevant to this procurement of
services and am requesting approval of an exception to the competitive process for the
reasons described.
2) the price to be paid to the proposed single source contractor is fair, reasonable, and
provides the best value to the City of North St. Paul; and
3) this request for an exception to the competitive solicitation process is not the result
of inadequate advance planning or for purposes of securing the services of a
preferred contractor
Department Head Signature Date
Standard Operating Policy
City of Oakdale
Policy Number: FR-011
Pages: 6
Subject: Purchasing
Date Approved: Unknown Amended: 10/2022
1.0 Repeal
1.1 Previous Policy FR-011, date approved unknown, is repealed and replaced in its entirety.
2.0 Purpose
2.1 In order to have consistency and uniformity in the purchasing practices of the City, it is
essential for those authorized to purchase goods or services to have a clear
understanding of the purchasing policy and the requirements thereof. The following
information is intended to serve as a guide for purchasing practices.
2.1.1 This purchasing policy was created to:
a. Clarify and reconcile the complex requirements of state purchasing law,
departmental procedures, and the Finance Department processes.
b. Provide a comprehensive resource book for staff to be effective and efficient when
making purchases.
c. Standardize purchasing and payment methods to expedite the purchasing process.
d. Assure the City Council and City Administrator that adequate controls over
purchasing are well established and adhered to.
3.0 Quick Reference Guide and Additional Notes
Value of Purchase Quotations
Needed
Payment Request
Options
Approvals Needed Prior to
Purchasing
Less Than $10,000
Pursue an open
market best
price purchase
Credit Card Department X
Charge Account Finance
Check Request City Administrator
Electronic City Council
$10,000-$24,999
Pursue an open
market best
price purchase
Check Request
Electronic
Department X
Finance X
City Administrator X
City Council
$25,000-$174,999
Two Written
Quotes/RFPs or
Cooperative
Purchasing
Contract
Check Request
Electronic
Department X
Finance X
City Administrator X
City Council X
Greater Than
$175,000
Sealed Bids or
Cooperative
Purchasing
Contract
Check Request
Electronic
Department X
Finance X
City Administrator X
City Council X
2
3.1 If a cooperative purchasing agreement is in place, quotations are not needed. All
purchases must be approved as part of the annual budget or within the CIP.
3.2 The level of budgetary control is established at the department level. Expenditures for
departments that exceed appropriations are not authorized unless additional revenue
sources, unspent appropriations, or fund balances are identified and available.
3.3 Departments are responsible for collection and retention of all bids, quotes and
cooperative purchasing agreements used in the purchasing process.
4.0 Public Purpose Expenditures
4.1 All expenditures made by City employees using City funds must be for a public purpose. An
expenditure is made for a public purpose if it meets all of the following criteria:
a. It will benefit the community as a whole;
b. It is directly related to functions of government; and
c. It does not have as its primary objective the benefit of a private interest.
5.0 Guidelines Regarding Certain Employee Expenditures
5.1 To ensure City funds are only used for public purposes in regard to certain employee
expenditures, City employees must observe the following guidelines.
5.2 Expenses Related to Work Assignments
5.2.1 The City may pay reasonable expenses directly related to the performance of an
official City activity including expenses for travel, lodging, meals, and appropriate
incidental expenses that are directly related to the performance of an employee’s
official job duties for the City. See Policy PE-014 for further details.
5.3 Employee Safety Programs
5.3.1 The City may pay reasonable expenses directly related to the operation of an
employee safety program when the program is required by law or the benefit of the
program is clearly demonstrated and a written outline of the program is approved
by the City Council.
5.4 Employee Training and Development Programs
5.4.1 The City may pay reasonable registration, tuition, and travel expenses for a
conference, seminar, workshop or similar employee training (internal or external) or
development opportunity when it is directly related to the performance of the
employee’s official job duties for the City. See Policy PE-014 for further details.
5.5 Employee Wellness and Recognition Programs
5.5.1 The City may pay reasonable expenses related to employee wellness and
recognition programs, including non‐monetary service awards to recognize
employee performance and length of service. Any such program shall be outlined in
writing and approved by the City Council. Further, the City shall not pay for spouses
or third parties to attend any wellness or recognition event.
3
5.6 Meals and Refreshments
5.6.1 As part of a structured agenda of a conference, workshop, seminar or meeting
when the employee is authorized by the City to attend and the topic relates to the
official business of the City.
5.6.2 As part of a City-sponsored meeting, conference, or workshop when the employee
is required by the City to attend and the majority of the participants are not City
employees.
5.6.4 As part of a City‐sponsored event where registration fees are charged and the
majority of the participants are not City employees.
5.6.5 During an official meeting of the City Council or any official meetings of City Council
committees, task forces, work group, or advisory committees, provided the
provision of meals or refreshments is necessary to sustain the flow of the meeting
and to assist the participation of the attendees.
5.6.6 As part of a formal meeting that consists primarily of City employees when the
meals or refreshments are an integral part of the formal meeting or training and
are necessary to sustain the flow of the meeting, to retain the captive audience,
and to assist the participation of those employees and attendees, but only if the
meeting is a City or department‐wide staff meeting for all City or department
employees, as applicable.
5.6.7 As part of a meeting during which a presentation is made relating to an aspect of
municipal government.
6.0 Payments
6.1 Minnesota Statute 471.425 Subd. 2 requires invoices to be paid within 35 days from
receipt. Per Minnesota Statute 471.425 Subd. 4a, for invoices not paid in a timely
manner, the interest rate is 1 ½ percent per month or part of a month. The minimum
monthly interest on an invoice of $100 or more is $10.00. Interest penalties do not apply
to good faith disputes.
6.2 Minnesota Statute 412.271 Subd. 8 allows for delegation of authority by the City Council
for paying certain claims. The City Council has delegated authority to the city administrator
to purchase goods and services and to enter into contracts when the amount does not
exceed $25,000.
6.3 Minnesota Statute 412.271 Subd. 1 allows for the immediate payment of judgments,
salaries and wages previously fixed by the council, principal and interest obligations, rent
and other fixed charges, and the exact amount of which has been previously determined
by contract authorized by the council. Contact the finance department for a copy of the
city’s payment procedures.
6.4 Minnesota Statute 412.271 Subd. 1 allows the city council, at its discretion, to delegate
its authority to pay certain claims made against the city to a city administrative official. A
city council that delegates its authority to pay certain claims made against the city must
adopt a resolution authorizing a specified city administrative official to pay the claims that
meet the standards and procedures established by the council.
4
6.5 The Finance Division policy is for bills/invoices to be paid on one of the bi-monthly Claims
lists presented to the City Council. As such, all payment requests must be submitted to
the Accounts Payable Clerk prior to 8:00 A.M. on the first and third Tuesday of each
month.
6.6 Following approval of the Claims list by the City Council, the Accounts Payable Clerk will
distribute or mail payments the following business day.
7.0 Prohibited Expenditures
7.1 The following is a list of specifically prohibited expenditures with exceptions only/if as
otherwise noted in other City Policy. Note that this is not complete listing.
a. Alcoholic Beverages b. Dues to Social Clubs
c. Personal Purchases d. Greeting/Sympathy cards
e. Pictures, Artwork, Décor f. Employee Parties (including holiday parties)
g. Gifts of any kind h. Refreshments for Routine Meetings
i. Holiday Decorations j. Entertainment
k. Decorations for office l. Contributions or Donations
m. Flowers n. Lobbying
8.0 Cooperative Purchasing
8.1 The City may increase savings from bulk discounts by making purchases jointly with one or
more governmental units through joint powers agreements.
8.2 Under these programs, several governmental units can enter into an agreement to
authorize one party to solicit bids and provide for the purchase at the option of each
participating governmental unit.
8.3 Once the governmental units agree on the specifications of the item, one party may
advertise for bids on behalf of all the parties that participate in the agreement. Rather
than specify a specific number of items, the advertising participant will advertise for a
range of quantities estimated for the entire group.
8.4 Each participating unit can make the final decision on whether to purchase the items from
the successful bidder.
9.0 Emergency Purchases
9.1 Emergency situations may arise where the normal purchasing process cannot be followed
for the procurement of goods and services.
9.2 Emergency purchases are those made by department managers where an immediate
purchase is necessary to correct a situation, which would adversely affect the life, health,
or safety of the citizens.
9.3 Whenever possible the current purchasing policies and procedures should be followed
even when an emergency is declared, but as described above if the emergency requires
speedy action essential to the health, safety, and welfare of the community and if there
has been an emergency declaration, the standard purchasing policies and procedures can
be waived in accordance with Minnesota Statute 12.37.
5
9.3 Every effort shall be made to contact the City Administrator whether the emergency occurs
during or after normal working hours. On the next business day, such emergency shall be
documented with the City Administrator & Finance Director.
9.4 In the event of a prolonged emergency, Minnesota Statute 12.29 gives the Mayor the
authority to declare a local emergency and may be extended by the City Council. During
such an emergency, if authorized by City Council, the City is not required to use the
typically mandated procedures for purchasing and contracts. During that time, the
governing body may waive compliance with the prescribed purchasing guidelines,
including compliance with Minnesota Statute 471.345, Uniform Municipal Contracting
Law.
10.0 Preapproved Purchases
10.1 The City Council has pre-approved payment for items such as utility accounts and payroll
transfers that occur in the normal course of business. These are contractual accounts for
services that are approved as part of the budget process.
10.2 The exceptions that fall under this situation include:
a. Utility Bills (fuel, natural gas, telephone, solid waste)
b. Metropolitan Council Environmental Services
c. Fringe benefits and other payroll related items
d. Auto, property, liability, and workers compensation insurance premiums
e. Utility overpayment refunds
f. Employee reimbursements for budgeted purchases
g. Gasoline and diesel fuel
h. Contractual payments for agreements previously approved by the City Council
i. Copier leases
j. Mandated licenses, permits, and fees to the State and Federal Government
k. Debt Service Payments as listed in the Debt Service Schedule in bond documents
11.0 Decentralized Purchasing
11.1 The City of Oakdale has a “decentralized” purchasing program where individual
departments are responsible for making their own purchases. There are a few exceptions
including State Bid vehicles and other similar state or cooperative purchasing agreements.
11.2 All other purchases should follow the rules below:
a. Determine the need for commodities or services.
b. Research the cost of the purchase and determine proper purchasing alternative.
c. Determine the appropriate account coding and whether there are sufficient funds
available in that budget line item.
d. Follow the quick reference matrix to determine preapproval process. If bids/quotes are
required, ensure these are included with the preapproval process.
e. Code the invoice for processing.
f. Accounts payable listing is approved by City Council.
g. Payment is made by the Finance Department.
6
12.0 Local Vendors
12.1 City employees will make reasonable effort to purchase goods and services from vendors
physically located within the city, and award purchases to those vendors when cost
effective and not otherwise prohibited by state or federal law.
12.2 This can be accomplished by insuring that local and state vendors who have goods or
services available are included in the competitive shopping process that will precede most
purchases.
13.0 Ethics / Relations with Vendors
13.1 The City of Oakdale holds its employees to the highest ethical standards. Purchases shall
be conducted so they foster public confidence in the integrity of the City’s procurement
system, and open and free competition among prospective suppliers.
13.2 In keeping with this value, employees should avoid the following practices when making
purchases on behalf of the City:
13.2.1 Circumventing competitive bidding requirements – Examples:
a. Splitting purchases so that they can be made through several small
purchases.
b. Using the emergency procedure process when no true emergency exists.
c. Using a “sole source” exemption when competition is available.
13.2.2 Denying one or more vendors the opportunity to bid on a contract – Examples:
a. Using unnecessarily restrictive specifications.
b. Pre-qualifying bidders on a discriminatory basis.
c. Removing companies from a bidders list without just cause.
d. Requiring unnecessarily high bonding.
13.2.3 Providing favored vendors an unfair advantage – Examples:
a. Providing vendors with information regarding their competition’s offers in
advance of a bid opening.
b. Making information available to favored vendors and not to others.
c. Giving un-favored vendors inaccurate or misleading information.
13.2.4 Accepting gifts from vendors
a. Minnesota Statutes 471.895 prohibits government employees from
receiving gifts except where they are included as part of the cost of a
product, good, or service provided.
14.0 Credit Cards
14.1 See Policy FR-022
15.0 Petty Cash
15.1 See Policy FR-009
PURCHASING AND SPENDING AUTHORITY POLICY
CITY OF RICHFIELD
CITY POLICY
DATE: January 10, 2023
SUBJECT: Purchasing and Spending Authority Policy
The purpose of this policy is to establish uniform and consistent guidelines with respect to purchasing and
the authority to purchase on behalf of the City within the parameters of the Uniform Municipal Contracting
Law, Minnesota State Statute Section 471.345. Additional resources from the League of Minnesota Cities,
related to purchasing and spending authority, is contained in:
Information Memo - Competitive Bidding Requirements in Cities
Handbook for Minnesota Cities - Chapter 22 Expenditures, Purchasing and Contracts
Uniform Municipal Contracting Law (Minn. Stat. Sec. 471.345)
The Uniform Municipal Contracting Law sets out procedures that cities must follow for contracts to sell,
purchase or rent supplies, materials, or equipment, or to construct, alter, repair or maintain real or personal
property. The procedures to follow depend on the estimated amount of the contract and estimates should
be reasonable. (e.g. if a city asks for quotations because it estimates the value of a contract will be below
the bid threshold but all of the quotations are substantially over the threshold, the city should solicit formal
bids.)
A. Contracts defined. A “contract” means an agreement entered into by a city 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. (Minn. Stat. Sec. 471.345.2) All City contracts should be
in writing regardless of their nature or the dollar amount involved.
B. Contracts or purchases over $175,000. If the amount of the contract is estimated to exceed
$175,000, sealed bids shall be solicited by public notice in the manner and subject to the law
governing contracts or purchases by the City of Richfield. (Minn. Stat. Sec. 471.345.3) The
requirement that the successful bidder be “responsible” protects cities from having to choose
unqualified or unscrupulous low bidders. It allows a city council to consider factors such as the
bidder’s financial responsibility, integrity, skill and ability, and the likelihood that the bidder will do
satisfactory work. A city can even include evaluation criteria for “responsible” bidders in the bid
specifications.
C. Contracts over $175,000; best value alternative. As an alternative to the procurement method
described in paragraph A, cities may award a contract for construction, alteration, repair, or
maintenance work to the vendor or contractor offering the best value under a request for proposals
as described above and in state statutes section 16C.28, subdivision 1, paragraph (a), clause (2),
and paragraph (c). (Minn. Stat. Sec. 471.345.3a)
D. Contracts or purchases from $25,000 to $175,000. If the amount of the contract or purchase is
estimated to exceed $25,000 but not to exceed $175,000, the contract or purchase may be made
either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the
purchase or sale when possible, and without advertising for bids or otherwise complying with the
requirements of competitive bidding. All quotations must be kept on file for a period of one year
after receipt thereof. (Minn. Stat. Sec. 471.345.4)
E. Contracts from $25,000 to $175,000; best value alternative. As an alternative to the
procurement method described in paragraph C, cities may award a contract for construction,
alteration, repair, or maintenance work to the vendor or contractor offering the best value under a
request for proposals as described above, and in state statutes section 16C.28, subdivision 1,
paragraph (a), clause (2), and paragraph (c). (Minn. Stat. Sec. 471.345.4a)
F. Contracts or purchases $25,000 or less. If the amount of the contract is estimated to be $25,000
or less, the contract or purchase may be made either upon quotation or in the open market, in the
discretion of the governing body. If the contract or purchase is made upon quotation it shall be
based, so far as practicable, on at least two quotations which shall be kept on file for a period of at
least one year after their receipt. Alternatively, cities may award a contract for construction,
alteration, repair, or maintenance work to the vendor or contractor offering the best value under a
request for proposals as described above and in state statutes section 16C.28, subdivision 1,
paragraph (a), clause (2), and paragraph (c). (Minn. Stat. Sec. 471.345.5)
Best Value Procurement Alternative
Under certain circumstances, as listed above, cities may use best value contracting for construction
projects. Best value procurement is a process based on competitive proposals, as an alternative to sealed
bids, which awards the contract to “the vendor or contractor offering the best value under a request for
proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).”
(Minn. Stat. Sec. 412.311.2)
For the purposes of construction, alteration, repair or maintenance work, “best value” describes the result
determined by a procurement method that considers price and other criteria. A list of potential other criteria
can be found in Minn. Stat. Sec. 16C.28.1b. The solicitation document must state the relative weight of
price and other selection criteria and the award must be made to the vendor or contractor offering the best
value applying the weighted selection criteria. If an interview of the vendor’s or contractor’s personnel is
one of the selection criteria, the relative weight of the interview shall be stated in the solicitation document
and applied accordingly.
Personnel administering best value procurement procedures must be trained in Request for Proposals
(RFP) process for best value contracting for construction projects.
Exceptions to Competitive Bidding
The following are some of the most common exceptions to the competitive-bidding requirements:
A. Non-contracts. An agreement that does not meet the definition of a contract under the competitive
bidding law is exempt from the competitive bidding requirements. For example, an agreement in
which a company supplied a special scoreboard system in exchange for the right to sell or lease
advertising space on it was found to be exempt from the competitive bidding requirements because
it was not a contract for “materials, supplies or equipment.” Likewise, contracts for refuse hauling
and janitorial services were also found to be exempt from the competitive bidding requirements
because they were not considered to be contracts within the definition of the competitive bidding
law. (LMC Competitive Bidding Requirements)
B. Cooperative purchasing. (a) Cities may contract for the purchase of supplies, materials, or
equipment by utilizing contracts that are available through the state's cooperative purchasing
venture authorized by section 16C.11. For a contract estimated to exceed $25,000, a city must
consider the availability, price and quality of supplies, materials, or equipment available through
the state's cooperative purchasing venture before purchasing through another source. (b) If a city
does not utilize the state's cooperative purchasing venture, a city may contract for the purchase of
supplies, materials, or equipment without regard to the competitive bidding requirements of this
section if the purchase is through a national municipal association's purchasing alliance or
cooperative created by a joint powers agreement that purchases items from more than one source
on the basis of competitive bids or competitive quotations. (Minn. Stat. Sec. 471.345.15)
C. Electronic reverse-auction purchases. Cities may use an electronic reverse-auction procedure
to contract for the purchase of supplies, materials, and equipment regardless of their cost. This
procedure allows vendors to compete to provide the requested supplies, materials or equipment at
the lowest selling price in an open and interactive electronic environment. Cities may not use this
process to contract for services or a service contract. (Minn. Stat. Sec. 471.345.16)
D. Electronic sales of surplus supplies, materials, and equipment. Cities may contract to sell
supplies, materials, and equipment, which are surplus, obsolete, or unused, regardless of their
cost, using an electronic selling process in which purchasers compete to offer the highest purchase
price in an open and interactive environment. (Minn. Stat. Sec. 471.345.17)
E. Guaranteed energy savings contracts. Contracts for energy conservation measures that will
reduce energy consumption or operating costs are not subject to competitive bidding. There are
additional procedural requirements that must be considered and satisfied. (Minn. Stat. Sec.
471.345.13)
F. Intergovernmental contracts. Contracts between governmental entities for the sale, lease or
purchase of real or personal property between federal, state or political subdivisions. (LMC
Competitive Bidding Requirements)
G. Real estate contracts. The purchase or sale of real property is generally not required to be
competitively bid. (LMC Competitive Bidding Requirements)
H. Professional services contracts. Professional services, such as those provided by doctors,
engineers, lawyers, architects, accountants, and other services requiring technical, scientific or
professional training.
I. Some group-insurance contracts. Group insurance for 25 or more employees. This type of
insurance must be solicited through requests for proposals. The request for proposals must be in
writing and must include the coverage to be provided, the criteria for evaluation of carrier proposals,
and the aggregate-claims records for the appropriate period. The request for proposals must be
published in a newspaper or trade journal for at least 21 days before the final day for submitting
proposals. (LMC Competitive Bidding Requirements)
J. Emergency contracts. The Emergency Management Act gives cities the ability to declare an
emergency for a limited period of time. During an emergency (“an unforeseen combination of
circumstances that calls for immediate action to prevent a disaster from developing or occurring”)
or disaster (“a situation that creates an actual or imminent serious threat to the health and safety
of persons”), cities are not required to use mandated contracting procedures. If the facts of the
situation do not indicate that a true emergency existed, such a contract would likely be considered
void. (LMC Competitive Bidding Requirements)
K. Some intergovernmental construction contracts. A cooperative agreement to construct a
project with the state or with another political subdivision of the state when the other unit does the
construction. This applies only where there is an agreement prior to the initial advertising for bids
on the project. (LMC Competitive Bidding Requirements)
L. Water tank service contracts. Under certain circumstances, a city may enter into a multi-year
contract for the engineering, repair, and maintenance of a water storage tank and its accessory
facilities without advertising for bids. (Minn. Stat. Sec. 471.345.5b)
M. Public safety equipment. A city may acquire by purchase or lease used public safety equipment
without competitive bids or proposals if the equipment is clearly and legitimately limited to a single
source of supply, and the contract price may be best established by direct negotiation. “Public
safety equipment” is defined as vehicles and specialized eq uipment used by a fire department in
firefighting, ambulance, and emergency medical treatment services, rescue, and hazardous
materials response. (Minn. Stat. 471.3455)
N. HRA exceptions. Under certain circumstances, a housing and redevelopment authority does not
need to comply with competitive bidding requirements. (Minn. Stat. 469.015.4)
O. Public improvements made by a subdivider. The construction and installation of public
improvements made by a subdivider or a subdivider’s contractor do not need to comply with
competitive bidding requirements. (Minn. Stat. 462.358.2a)
Richfield City Charter Requirements
A. Section 6.05. Purchases and Contracts. City contracts must be made in compliance with state law
and this charter. Where the amount of a contract is more than the dollar amount contained in
Minnesota Statutes, Section 471.345, Subd. 3 the contract must be approved by the City Council
upon the recommendation of the City Manager. When contracts are competitively bid, the Council
may reject any and all bids. The City Manager may approve contracts in an amount equal to or less
than the dollar amount contained in Minnesota Statutes, Section 471.345. Subject to the provisions
of the Charter, and other applicable law, the Council may by ordinance or by resolution adopt further
regulations for making of bids and letting of contracts. (Amended, Bill 1987-21, Bill 1996-5; Bill No.
2013-8)
B. With respect to public improvements and special assessments, the following City Charter
requirements apply:
1. Section 8.03. Public Works; How Performed. Public works, including all local improvements,
may be constructed, extended, repaired and maintained either directly by day labor or by
contract. The City shall require contractors to give bonds for the protection of the City and
all persons furnishing labor and materials pursuant to the laws of the state.
2. Section 8.04. Approval by Ordinance. Any capital improvement on property owned or leased
by the City, excluding street and utility rights of way, which has an estimated cost exceeding
$2,000,000.00 or expenditures for design or engineering costs exceeding $250,000.00 must
be approved by ordinance after a public hearing. (Added, Bill No. 1998-5; Bill No. 2013-10)
3. Section 8.05. Notice of Public Hearings. Notice of public hearings required by Section 8.04
shall be published at least twice in the official newspaper within fourteen (14) days prior to
the date of the hearing. Additional notice of such public hearings may be given in such
manner as the Council may determine. This notice must contain the estimated costs of the
capital improvement. (Added, Bill No. 1998-5)
Spending Authority
A. Contracts or purchases greater than $175,000 must be submitted to the City Council for
approval.
B. Contracts or purchases from $25,000 to $175,000 must be approved by division
manager, department director, finance manager and the City Manager or designee.
C. Contracts or purchases from $5,000 to $25,000 must be approved by the division
manager, department director and finance manager or designee.
D. Contracts or purchases from $1,000 to $5,000 must be approved by the division
manager, and the department director or the department director’s designee.
E. Contracts or purchases less than $1,000 must be approved by the division manager.
Liquor Operations Spending Authority
A. Liquor operation invoices that are for product purchased for resale must be approved by either the
lead liquor clerk, assistant store manager or the store manager. Invoices for product purchased for
resale are not required to follow normal spending authority procedures. There are two reasons for
this exception to normal spending authority procedures:
1. Product purchases for resale are required to be paid to the beer and liquor wholesalers
within 30 days of delivery.
2. The large volume of product invoices to process requires the simplified spending authority
procedures.
B. All other contracts or purchases that are not products purchased for resale must follow normal
spending authority procedures as outlined above.
Notice of Solicitation of Bids
The notice that bids are being solicited must be published once in the city’s official newspaper at least ten
days before the last day for the submission of bids. Additional public notice and hearing requirements for
public improvements ordered and specially assessed are provided in Minn. Stat. Chapter 429.
Alternative Dissemination of Bids and Requests for Proposals
A city may use its web site or a recognized industry trade journal as an alternative method to disseminate
solicitations of bids, requests for information, and requests for proposals.
A. If a political subdivision designates an alternative method to newspaper notice:
1. The political subdivision must continue to publish solicitations and requests in the
newspaper for six months in addition to the alternative method.
2. The publication in the newspaper must indicate where to find the designated alternative
method.
3. Alternative methods of publication must be in substantially the same format and for the
same time period as is required for newspaper publication. (Minn. Stat. Sec. 331A.03)
B. If, in the normal course of its business, a qualified newspaper maintains a web site, then as a
condition of accepting and publishing public notices, the newspaper must agree to post all the
notices on its web site during the notice’s full publication period. (Minn. Stat. Sec. 331A.02.5)
Performance and Payment Bonds
For some contracts, cities must require contractors to provide a performance bond and a payment bond.
This requirement applies to contracts over $75,000 for the performance of public work. The required
performance bond benefits the city by ensuring that the work is completed according to the terms of the
contract, while the required payment bond benefits subcontractors and people who provide labor and
materials, by seeing that their claims for labor and materials are paid.
Withholding Certificates
Before a city makes the final payment to a contractor under a contract requiring the employment of
employees for wages, it must make sure the contractor and any subcontractors have complied with
withholding tax laws. Contractors and subcontractors show compliance by submitting a withholding
affidavit to the Minnesota Department of Revenue. This can be done electronically or by mailing a
completed Form IC134, “Withholding Affidavit for Contractors.” If a contractor or subcontractor has withheld
taxes as required, the Department of Revenue will return an electronic confirmation or sign and return the
Form IC134, certifying compliance.
Approved: /s/ Katie Rodriguez
City Manager
Purchasing Policy
1.0 Organization Affected
All Departments and the Municipal Liquor Store.
2.0 Policy Objectives
The objectives of the policy guidelines are:
• To support the local firms and merchants within the community whenever possible subject
to meeting other expenditure guidelines objectives.
• To ensure City Funds are only used for public purposes.
• To obtain supplies, equipment, and services as economically as possible.
• To purchase materials which are best suited to the specific needs of departments.
• To improve the speed of delivery to departments by predetermining, through contracts or
other appropriate means the sources of supply before the actual needs.
• To promote fair and open competition among bidders.
• To ensure compliance with all applicable policies, statutes, and regulations of the City, the
State, and the Federal Government.
3.0 Local Purchasing Objectives and Criteria
Purchasing from local business and merchants is a high priority to support the economic vitality of
the Rogers business community. Whenever economically possible, local vendors will be included
in obtaining bids, quotes, or estimates to obtain supplies, equipment, and services. A local vendor
may be selected on any of the following criteria:
• Low cost
• Availability of goods and services required by City departments
• Reduction of shipping or delivery costs and delivery time
• Quality of services and/or products
4.0 Public Purpose
All expenditures incurred by the City must be for a public purpose. An expenditure is made for a
public purpose when it meets all of the following criteria:
• The expenditure must benefit the community as a body;
• The expenditure must be directly related to functions of the government; and
• The expenditure does not have as its primary objective the benefit of a private interest.
5.0 Prohibited Practices
All employees of the City shall comply will all City, State, and Federal statutory requirements
regarding purchase of materials or services. The following practices are also specifically forbidden
so as to not create a conflict of interest:
• Using information available to an employee solely because of their position for personal
profit, gain, or advantage.
• Directly or indirectly furnishing estimating services, or any other services or information
not available to all prospective bidders, to any person bidding on, or who may reasonably
be expected to bid on, a contract.
• Using their position or status in the City to directly or indirectly solicit business of any
kind for private use or to obtain supplies and equipment at special discounts or with special
concessions from any vendor who sells or solicits sales to the City.
6.0 Purchasing – Standards and Methods
Department heads will be accountable for the purchasing done within their departmental budgets.
Department heads may not code expenditures to other departmental budgets unless authorized.
Furthermore, requests cannot be made for items outside the budget except under special
circumstances related to the following:
• Emergency repairs and equipment replacement.
• Unforeseen and incidental expenses, which can be related to a Council approved project
and Council approved Capital Equipment purchase.
In general, each department shall make purchases suited to the needs of the City. Purchases will
not be separated into smaller purchasing components in order to eliminate a threshold
authorization requirement. To facilitate a sound and cost-effective purchasing operations, City
departments shall follow one of the following procurement methods:
Amount of
Purchase
Type of Quote
Required
Prior
Approval
Required By
Purchase Order
Required
Under $1,000 None None No
Between $1,000 -
$5,000
Two quotes
preferred
Department
Head
No
Between $5,000 -
$10,000
Two quotes
preferred
City
Administrator
and Finance
Officer
Yes
Over $10,000
up to $25,000
Two quotes
required
City Council No,
City Council
Approval
$25,000 up to
$175,000
Sealed bids
optional or two
quotes required
City Council No,
City Council
Approval
Over
$175,000
Sealed bids
required
City Council No,
City Council
Approval
6.1 Direct Negotiation
Contracts from $25,000 up to $175,000 can be let on sealed bids or direct negotiation, with a
minimum of two quotations whenever possible. If the contract is let on direct negotiation, the
quotations must be kept on file for a year.
6.2 Sealed Bids
Contracts from $25,000 up to $175,000 can be let on sealed bids or direct negotiation.
Furthermore, Cities with populations of 2,500 or more must use the sealed bid process for
contracts estimated to exceed $175,000.
For contracts let on sealed bids, the department head or designee shall prepare contract and bid
specifications in conjunction with the project. The City Council shall approve the specifications
and authorization to place and advertise for bids. The request for bids must be published at least
once in the official newspaper and at least ten days in advance of the last date for the submission
of bids. Bids must be kept on file. If there was no notice given or sealed bids solicited,
documentation that a special emergency (a situation requiring immediate action essential to the
health, safety, or welfare of the City) existed is required. If the contract was not awarded to the
lowest responsible bidder, reasonable and appropriate reasons must be documented by resolution.
Public improvement contracts will follow other requirements as outlined in Minnesota Statutes.
6.3 State of Minnesota Cooperative Purchasing Venture
For contracts related to the purchase of supplies, material, or equipment over $25,000, the City
must consider the availability, price, and quality of the supplies, materials, or equipment available
through the State’s cooperative purchasing venture before purchasing through another source.
6.4 Purchase Orders
All purchase orders must be obtained prior to the ordering of merchandise or services. If exact
costs are unknown, an estimate will be sufficient.
The Purchase Order shall be completed and signed prior to purchasing the item requested.
The Purchase Order shall include:
• The date of purchase order,
• The purchase order number (sequentially numbered),
• The name, address, and contact information for the vendor,
• A description of the item(s) to be purchased,
• The quantity,
• The cost including tax and shipping if available, and
• The budget code to be charged.
The Purchase Order shall be signed by the Department Head, the Finance Director, and the City
Administrator.
A copy of the Purchase Order shall be given to the Finance Department prior to the purchase. The
quotations obtained for the item(s) to be purchased should be attached the purchase order unless
special circumstances are noted.
The department head is responsible for ensuring that adequate funds are available in the budget for
the item(s) requested.
After the above steps have been completed, the item(s) may be purchased.
6.5 Exceptions to Requirement for a Purchase Order
The exceptions to the requirement for a purchase order are the general categories of refunds,
meeting expenses, travel authorization, mileage reimbursement (for which the claim forms are
provided), utility bills, maintaining inventory and items for resale, and certain recurring
contractual expenses which occur after the initial order. If the contractual charges are for a
specified period of time, a purchase order is required. This is not a “recurring” expense within the
meaning of this policy. An additional exception occurs when payment is specifically ordered by
the City Council as in the case of land purchase or other such agreement or a contract awarded by
the Council.
6.6 Exceptions to Competitive Bidding Requirements
If the municipality contracted for the purchase of supplies, materials, or equipment without regard
to competitive bidding requirements, the purchase must be through the State of Minnesota’s
cooperative purchasing venture or a national municipal association’s purchasing alliance or
cooperative created by a joint powers agreement that purchases items from more than one source
on the basis of competitive bids of competitive quotations. Other exceptions include bids for
professional services, insurance contracts, reverse auctions, purchases from other government
agencies, real estate, public safety equipment, and others as noted in Minnesota Statute Section
471.345.
6.7 Exceptions to Advance Approval by City Council
The budgets approved by the City Council allocates funds for the purchase of personnel, supplies,
other services, and capital. The City Council must approve all claims. Budgeting for an
expenditure does not constitute payment approval authority. There are exceptions to the general
requirement that City Council approval be obtained. These exceptions include:
• Salaries and wages fixed by law or by Council.
• Settlements of lawsuits and judgments against the City.
• Principal and interest payments on obligations of the City.
• Rent and other fixed charges (as set by contract and previously authorized by Council).
• Claims arising from the City’s failure to perform a statutory duty.
• Emergency repairs and equipment replacement.
7.0 Claims/Acquisition Process
The City executes purchases depending on the dollar amount and nature of the purchase. Staff
making purchases according to standards and methods will adhere to the following processes:
• Itemized sales receipts, invoices, and a description of the purchase are required.
• Payment requests related to departmental purchases are reviewed and approved by the
department manager to ensure accuracy of coding and to be in line with the departmental
budget.
• Payment requests are to be submitted timely as Minnesota State Statute requires the City to
make payment within 35 days of receipt.
• The Finance Director, prior to City Council reviews the claims and claim register.
• City Council reviews and approves all purchases by City staff at each Council meeting by
the consent agenda.
The required signature on all checks is three of the following: Finance Director/Treasurer,
Assistant City Administrator/Clerk, Mayor, or City Administrator.
CITY OF SHOREVIEW, MINNESOTA
PURCHASING POLICY
Effective November 18, 2019
SCOPE: This purchasing policy applies to all employees of the City of Shoreview,
Minnesota who are authorized to enter into contracts and purchase goods on behalf of the
City.
OBJECTIVES: Purchases of the City of Shoreview shall be in accordance with Minnesota
Statutes Chapter 471.345 Uniform Municipal Contracting Law, or as amended. There are
three general purposes behind this policy. First, it is intended to ensure taxpayers the lowest
price and best value for their tax dollars when the City makes a contract. Second, it allows
contractors a level playing field on which to compete for City contracts. Third, it limits the
discretion of Contract-making officials and thus reduces the possibility of fraud or
favoritism.
All participants in the purchasing process shall seek to act responsibly as custodians of the
public trust. Purchasing officials shall avoid any transaction that might impair public
confidence in the City’s ability to govern effectively. Purchasing officials shall recognize
that the purchasing process is subject to public review and evaluation. The overall process
shall be designed and managed with a degree of professionalism worthy of the public trust.
MINNESOTA STATUTE REQUIREMENTS:
Contract Defined: The definition of the term “contract” is broad, but it does not
include all contracts. Generally, a “contract” is an agreement entered into by the City
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.
State Statutes Group Contracts Into The Following Categories:
Contracts over $175,000: If the amount of the contract is estimated to exceed
$175,000 the City must use the competitive bidding process.
Contracts from $25,000 to $175,000: Contracts that are estimated to exceed
$25,000 but not exceed $175,000. The City may make the contract using the
competitive bid process or by quotations through direct negotiation. If the
latter method is used, the City must seek at least two quotations and keep
them on file for at least one year.
Contracts $25,000 or less: If the contract is estimated to be $25,000 or less
the City has the option of making the contract upon quotation or in the open
market. If the City makes the contract upon quotations, the City must obtain
at least two quotations and keep them on file for at least one year after their
receipt.
CITY OF SHOREVIEW REQUIREMENTS:
General requirements:
All items presented for payment must be in Entered into BS&A Accounts
Payable Module and scanned copy of original invoice attached. Payments can
only be made by original itemized invoice, payments from statements are not
permitted.
Employee reimbursements must be submitted on the employee expense
reimbursement form, signed by the employee’s Department Director and
scanned into BS&A Accounts Payable Module with original invoices or
itemized receipts to support all non-mileage reimbursements.
A minimum of two quotes must be attached to the invoice image for
purchases from $25,000 to $175,000, if the competitive bid process was not
followed.
Authorized signatures/bidding requirements:
Purchases under $2,500 may be purchased on the open market or by obtaining
a minimum of two quotes. Approval is required by an authorized individual.
Purchases from $2,500 to $9,999 may be purchased on the open market or by
obtaining a minimum of two quotes. Approval is required by a Department
Director.
Purchases from $10,000 to $20,000 may be purchased on the open market or
by obtaining a minimum of two quotes. Approval is required by the City
Manager and a Department Director.
Purchases from $20,001 to $25,000 may be purchased on the open market or
by obtaining a minimum of two quotes. Approval is required by the City
Council and the City Manager.
Purchases from $25,001 to $175,000 may be purchased by obtaining a
minimum of two quotes or calling for competitive bids. Approval is required
by the City Council and the City Manager.
Purchases over $175,000 may be purchased by calling for competitive bids.
Approval is required by the City Council and the City Manager.
LIST OF ATTACHMENTS:
Purchasing Policy and Bidding Requirements
Purchasing Policy Statutory Requirements
DATE: December 10, 2025
TO: Honorable Mayor & City Councilmembers
FROM: Sharon Provos, Finance Director
TOPIC: Purchasing Policy
BACKGROUND
On, March 1, 2022 the City Council approved the current City Purchasing Policy. That
policy defined the threshold for a capital asset to a cost greater than $5,000 and a useful life
of five years or longer. We would like to increase the threshold for a capital asset to a cost
greater than $10,000.
The Government Accounting Standards Board (GASB) recently revised its implementation
guideline for Guide No. 2021-1. The revision states that if a government buys similar,
lower-cost items (like computers, furniture) together, they should be aggregated and
capitalized as a group if their total cost is significant enough to influence financial
statement users, even if each item individually falls below the entity's standard threshold
(e.g., $10,000). After discussions with our auditors, we determined that we should update
our Purchasing Policy to address the GASB revision and set a $50,000 threshold for bulk
purchases to be capitalized.
We have also made some housekeeping changes to Appendix A to reflect current
workflows.
RECOMMENDATION
Staff recommends approving the revised purchasing policy.
ACTION REQUESTED
If Council concurs with staff recommendation, they should pass a motion to approve the
revised Purchasing Policy.
216 4th Street N, Stillwater, MN 55082
651-430-8800
www.ci.stillwater.mn.us
CITY OF STILLWATER PURCHASING POLICY
March 1, 2022
December 16, 2025
1 POLICY.
1.1 The City of Stillwater budget, as adopted for each year, allocates funds for the
purchase of supplies, goods and services, contractual and consulting services,
other services and capital outlay items. Requests cannot be made for items out-
side the budget except under special circumstances. These special
circumstances will have to be approved by the City Council upon
recommendation of the City Administrator. The Purchasing Agent is the City
Administrator.
1.2 All budgeted Capital Outlay purchases in excess of $50,000 must be approved
by the City Council prior to purchase. All budgeted Capital Outlay purchases
up to $50,000 must be preapproved by the City Administrator. Any item
changes listed in the approved Capital Outlay Budget must be authorized by
the City Council.
Capital Outlay purchases consist of all assets with a cost of more than $5,000
$10,000 that have a useful life of greater than five (5) years. Bulk purchases of
individual items purchased together with an aggregate value of $50,000 or
more will be capitalized regardless of the per unit threshold.
1.3 All budgeted purchases shall be submitted for review by the City Council. and
provided in the regular meeting packets.
1.4 All purchases and charges must be approved for payment by the appropriate
Department Head or designee.
2 DEPARTMENTS AFFECTED:
All Departments.
Page 2 of 8
3 PURCHASING PROCEDURE:
3.1 Purchase Requirements:
Amount of
Purchase
Type of quote
required
Approval
required by:
Written bid
specifications
Sealed bids
required
Contract
required
Invoice
required
Purchases up to
$1,000
Not Required City Clerk;
Asst. Public
Works
Supt.;
Police Capt.
Deputy Fire
Chief; IT
Manager
Not Required No No Yes
Purchases
$1,000 up to
$5,000
At least two
written quotes
required unless
special
circumstances
are noted
Department
Heads
As required
based on type of
purchase
No As required
based on type of
purchase
Yes; signed by
Department
Head/
Authorized
Signer
Purchases over
$5,000 up to
$50,000
At least three
written quotes
required unless
special
circumstances
are noted.
City
Administrator
As required
based on type
of purchase.
As required
based on
the type of
purchase
***Construction Yes, except for
certain
construction
projects; signed
by City
Administrator
or Deputy
Treasurer
projects yes;
commodities at
discretion of
City
Administrator
Purchases over
$50,000 up to
$175,000 -
At least three
written quotes
required unless
special
circumstances
are noted.
City Council As required
based on type
of purchase.
As required
based on
the type of
purchase
**Construction
projects yes;
commodities at
discretion of
City
Administrator
Yes, except for
certain
construction
projects; signed
by City
Administrator
or Deputy
Treasurer
Purchases
greater than
$175,000
City Clerk must
advertise in
City’s legal
newspaper
City Council Required. Yes Yes Yes, except for
certain
construction
projects (i.e.,
Local Imp.);
signed by City
Administrator
or Deputy
Treasurer
*Contracts up to $50,000 may be signed by the City Administrator.
**Contracts $50,000 and over must be signed by the Mayor and City Clerk
Page 3 of 8
3.2 Bidding Requirements:
3.2.1 When supplies or equipment are competitive in nature, specifications
cannot exclude all but one type of equipment or supplies. Proposals and
specifications must allow free and full competition. Bidding
requirements can- not be avoided by splitting a contract into several
contracts, each of which is below the minimum amount requiring sealed
bids. For example, the City cannot purchase $30,000 of lumber in several
transactions, each involving an expenditure of less than $25,000.
However, if materials or work logically fall into two separate contracts
because they involve separate transactions, as for the service of
contractors specializing in different kinds of work, the City can negotiate
the contracts individually without sealed bids if the bids do not exceed
the $25,000 minimum.
3.2.2 Sealed bids are required for purchases exceeding $175,000 The bids
must be advertised by the City Clerk in the City’s legal newspaper
(Notice to Bidders) and publicly opened and approved by Council
resolution. In addition to the legal notice, the City must prepare
instructions to bidders and general specifications for sealed bids.
Attaching a copy of the proposed contract to the instructions to bidders
is required.
3.2.3 Bid security in the amount of ten percent (10%) of the bid (for sealed
bids for purchases over $175,000) shall be submitted to the City Clerk.
The bid security guarantees that in the event the bidder’s offer is
accepted, the bidder will enter into a contract in accordance with the
proposal. Bid security of the successful bidder will be returned upon
execution of the con- tract documents. Bid securities of unsuccessful
bidders will be returned within a reasonable time period (Minnesota
Statute §574.27). Failure of the successful bidder to execute the Contract
and furnish applicable bonds within ten (10) days after receiving written
notice of the award shall cause the bid security to be forfeited as
liquidated damages to the City. In the event the successful bidder fails
to execute the contract, the City Council may award the contract to the
next lower competent bidder unless the Council determines that public
interest will be better served by accepting a higher bid, or the contract
may be re-advertised.
3.2.4 Municipal contracting law requires that bids must be awarded to the
lowest responsible bidder. It should be noted that the bidder who
submits the lowest bid in dollars is not necessarily the “lowest
responsible bidder” and the quoted phrase gives the Council reasonable
discretion in choosing among bidders. Responsibility, in bid statutes,
Page 4 of 8
means not only financial responsibility but also integrity, skill, and the
likelihood that the bidder will perform faithful and satisfactory work.
3.2.5 Cooperative purchasing contracts provide an opportunity for the City
to purchase goods and services at reduced costs. Employees do not
need to obtain bids if a purchase is made through the State of MN
Cooperative Purchasing Venture (CPV) or through a national municipal
association purchasing alliance or a cooperative created by a joint
powers agreement (of which the City is a member) that purchases
items from more than one source on the basis of competitive bids or
quotations that complies with State Statute 471.345, Subd. 15.
4 APPROVAL OF GOODS /SERVICES AND AUTHORIZATION OF PAYMENT
4.1 Upon receipt of the invoice the Department Head/Designee shall:
•Write “OK to Pay” and initial the invoice;
•Attach a copy of the quote;
•Load the receipt into MiViewPoint (MVP) along with all other supporting
documentation. Note: IC 134 forms are required before the City can make
final payment for construction contracts. This form should be retained by
Department responsible for contract.
•Code to the appropriate account. NOTE: Charging a purchase to a different
account because funds do not exist in the correct account or the account
is over budget is Not Allowed. (i.e. Office supply budget is depleted, but
copy paper is needed – the invoice still must be coded and charged to the
Office Supply account.); and approve in MVP. This will send the invoice
through to Finance.
•Submit to the Finance Department. Invoices and supporting
documentation will be scanned saved in the City’s Record Management
System and retained according to the City’s Record Retention schedule.
4.2 Finance shall review the invoice for correctness and compliance with the City
purchasing policy and include the payment on the list of bills for Council
approval in a timely manner and then file the invoice and payment (check)
accordingly.
4.3 The City Council shall appoint a Deputy Treasurer. The Deputy Treasurer shall
be authorized to approve and sign purchases in the absence of the City
Administrator and shall follow the policy and procedures set forth herein.
4.4 Department Heads shall designate, in writing, employees within their
respective departments that are authorized to issue and sign invoices for the
Department. The Department Heads shall be responsible for ensuring that the
designated person knows and understands the City’s purchasing policy and
that the designee acts in accordance with the policy.
Page 5 of 8
4.5 Department Heads shall change to designee in MVP when out of office.
5 RECREATION FACILITIES MANAGER
5.1 The Recreation Facilities Manager shall be authorized to make purchases
provided that the Manager follows the same procedures as stated above.
6 EMERGENCY PURCHASES (Pursuant to Resolution 2011-33, Adopted
February 15, 2011)
6.1 During a disaster or emergency, the Mayor and/or the City Administrator may
enter into contracts or incur obligations necessary to combat the emergency or
disaster by protecting the health and safety of persons and property. The City
Administrator may forego time–consuming procedures and formalities as it relates
to entering into contracts, incurring obligations, employment of temporary workers,
rental of equipment and purchasing of supplies and materials.
6.2 Approval of all contracts must be subsequently ratified by the City Council at
their next meeting.
Page 6 of 8
APPENDIX A: Authorized Signers for Invoices and Payroll Timesheets
Please note that Department Head approval is required on all purchases. City
Administrator or Deputy Treasurer approval is required on all purchases of $1,000 or more.
Please review the City’s Purchasing Policy if you have questions regarding the approval
process.
ACCOUNTS PAYABLE
Department Authorized Signer Authorized Back-Up Signer
Administration City Administrator/City Clerk Acting City Administrator Asst City
Administrator/ Administrative Services
Manager
Building Inspections Comm. Dev. Director Building
Official
Building Official Comm. Development.
Director
Community Development Comm. Development
Director/Plannering Manager
Planner Comm. Development Director
Elections City Clerk City Administrator
Engineering PW Director* Asst City
Administrator*/PW Deputy
Director*/Asst. City Engineer*
Asst. City Engineer PW Deputy
Director*
Engineering-Street Projects Asst. City Engineer* PW Deputy Director*
(*also authorized to sign contracts and grading deposits)
Finance Finance Director Asst. Finance Director
Fire Fire Chief Asst. Fire Chief Deputy Fire Chief
Human Resources Human Resources Manager City Administrator
Library Library Director Asst. Library Director
MIS IST Manager City Administrator
Parking Ramp Facilities Manager (Plant
Manager)
Comm. Development Director
Parking Lots Police Captains Comm. Development Director
Parks Parks Superintendent. Street Superintendent
Plant/City Hall City Administrator/City Clerk
Facilities Plant Manager/ Asst
City Administrator
Acting City Administrator Asst City
Administrator
Plant/Library Library Director Asst. Library Director Business &
Comm. Manager
Police Police Chief Police Captains Police Captain Police Chief
Public Works (all areas)
Streets & Shop
PW Superintendent Street
Superintendent
Asst. Superintendent/PW Director Asst
City Administrator
Recreation Center City Administrator Rec Center
Manager
Acting City Administrator Asst City
Administrator
Sanitary & Storm Sewer Utilities Superintendent Asst Supt/Street Superintendent
Water & Utilities Projects Utilities Superintendent PW Deputy Director*
Page 7 of 8
PAYROLL TIMESHEETS
Department/Classification Authorized Signer Authorized Back-Up Signer
City Administrator (Initialed by City Clerk) (Initialed by Finance Director)
Administration City Clerk City Administrator/Acting City
Administrator
Building Inspection Comm. Dev. Director Building Official
Department Heads/Managers City Administrator Acting City Administrator
Engineering Technicians PW Director City Administrator
Engineering (non-Techs) PW Director City Administrator
Finance Finance Director Assistant Finance Director
Fire Fire Chief Asst. Fire Chief
MIS IS Manager City Administrator
Planning Comm. Dev. Director Planner
Plant/Library Library Director Business & Communications Manager
Police Police Captain Police Chief
Public Works (all areas) PW Superintendent Asst. PW Superintendent/PW Director
PAYROLL TIMESHEETS
Department/Classification Authorized Signer Authorized Back-Up Signer
City Administrator City Clerk Finance Director
Administration City Clerk City Administrator
Administrative Services
Approval
Administrative Services
Manager
City Administrator
Department Heads/Managers City Administrator Asst. City Administrator
Boiler Asst. City Administrator Deputy Director - PW
Comm Dev Managers Comm Dev Director Planning Manager
Comm Dev Staff Planning Manager Comm Dev Director
Engineering Deputy Director - PW Asst. City Administrator
Engineering Deputy Director Asst. City Administrator City Administrator
Engineering II Asst. City Engineer Deputy Director - PW
Facilities Asst. City Administrator City Administrator
Finance Finance Director Asst. Finance Director
Fire Admin Fire Chief Deputy Fire Chief
Fire FT Deputy Fire Chief Fire Chief
Fire POC Asst. Fire Chief Deputy Fire Chief
HR HR Manager Administrative Services Manager
IT IT Manager Administrative Services Manager
Library – Circ & Shelver Library Circulation Services
Lead
Library Director
Page 8 of 8
Library – Ops
Library - Plant
Library Business & Comm.
Manager
Library Director
Library – Ref Library Information Services
Supervisor
Library Director
Library – YS Library Youth Services
Supervisor
Library Director
Library Library Director Library Business & Comm. Manager
Managers City Administrator Asst. City Administrator
Police 12 Hour Police Captain (Hunter Julien) Police Captain (Nate Meredith)/Police
Chief
Police Captain Police Chief City Administrator
Police 40 Hour Police Captain (Nate Meredith)Police Captain (Hunter Julien)/Police
Chief
Police Sergeants Police Captain (Hunter Julien) Police Captain (Nate Meredith)
PW – Parks PW Superintendent - Parks Deputy Director - PW
PW - Streets PW Superintendent - Streets Deputy Director - PW
PW - Utilities PW Superintendent - Utilities Deputy Director - PW
PW Managers Deputy Director - PW Asst. City Administrator
1 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
City of Victoria
Purchasing Policy
I. Purpose
This purchasing policy was created to:
Clarify and reconcile the complex requirements of state purchasing law, departmental
procedures, and the Finance Department processes
Provide a comprehensive resource book for staff to be effective and efficient when making
purchases
Standardize purchasing and payment methods to expedite the purchasing process
The standards in this policy are minimum standards to ensure fiscal responsibility. Departments may set
more restrictive procedures to meet their own budgetary accountability.
II. Quick Reference Guide
Value of
Purchase
Quotations
Needed
Payment Request
Options
Approvals Needed Prior
to Purchasing
Less than $100 None Credit Card
Check Request
Department
Finance
City Manager
City Council
X
$100-$4,999 Departmental
Discretion
Credit Card
Check Request
Purchase Order
Department
Finance
City Manager
City Council
X
$5,000-$9,999 Two Written
Quotes or RFPs
Check Request
Purchase Order
Department
Finance
City Manager
City Council
X
X
X
$10,000-$99,999 Two Written
Quotes or RFPs
Check Request
Purchase Order
Department
Finance
City Manager
City Council
X
X
X
X
Greater than
$100,000
Sealed Bids Check Request
Purchase Order
Department
Finance
City Manager
City Council
X
X
X
X
Notes:
If a cooperative purchasing agreement is in place, quotations are not needed.
2 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
All purchases must be approved as part of the annual budget or within the CIP. The level of
budgetary control is established at the department level. Expenditures for departments that
exceed appropriations are not authorized unless additional revenue sources, unspent
appropriations, or fund balances are identified and available. The City Manager is authorized to
transfer up to $10,000 between departments if an additional revenue source, unspent
appropriations, or fund balances are identified. Council approval is required for amounts over
$10,000.
The City Council has pre-approved payment for utility accounts and payroll transfers that occur in
the normal course of business even though they may exceed $10,000. These are contractual
accounts for services that are approved as part of the budget process. The vendors that fall
under this situation include: Centerpoint Energy, Minnesota Valley Electric Cooperative, Xcel
Energy, Metropolitan Council Environmental Services, United States Treasury, State of
Minnesota, PERA, and the City’s insurance and healthcare providers. Any payments to these
vendors that are outside the normal course of business will be presented to the City Council for
individual approval.
Debt Service Payments are also pre-approved as listed in the Debt Service Schedule in bond
documents.
Contractual services are subject to the limits in the Quick Reference Guide above. Independent
contractors are required to provide proof of insurance before providing services.
RFPs are required for contracting services in excess of $25,000 except for contractors included in
the consultant pool.
III. Ethics/Relations with Vendors
The City of Victoria holds its employees to the highest ethical standards. Purchases shall be conducted
so they foster public confidence in the integrity of the City’s procurement system, and open and free
competition among prospective suppliers. In keeping with this value, employees should avoid the
following practices when making purchases on behalf of the City:
Circumventing competitive bidding requirements – Examples include:
o Splitting purchases so that they can be made through several small purchases
o Using the emergency procedure process when no true emergency exists
o Using a “sole source” exemption when competition is available
Denying one or more vendors the opportunity to bid on a contract – Examples include:
o Using unnecessarily restrictive specifications
o Pre-qualifying bidders on a discriminatory basis
o Removing companies from a bidders list without just cause
o Requiring unnecessarily high bonding
Giving favored vendors an unfair advantage – Examples include:
o Providing vendors with information regarding their competition’s offers in advance of a bid
opening
o Making information available to favored vendors and not to others
o Giving un-favored vendors inaccurate or misleading information
Accepting gifts from vendors
o Minnesota Statutes §471.895 prohibits government employees from receiving gifts except
where they are included as part of the cost of a product, good, or service provided (such
as a meal as part of a conference).
3 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
IV. Purchasing Process
The City of Victoria has a decentralized purchasing program where individual departments are
responsible for making their own purchases. There are a few exceptions including supplies maintained
in the office supply closet, paper, and stationery products, and modular furniture and chairs. The
Administrative Assistant will assist staff members who need help with research or purchase of items in
cases where staff are not familiar with particular products.
Determine the need for commodities or services.
Research the cost of the purchase and determine proper purchasing alternative.
Determine the appropriate account coding and whether there is sufficient funds available in that
budget line item.
Forward request to department director or designee for approval. If the purchase exceeds
$5,000, City Manager approval is required. If the purchase exceeds $10,000, City Council
approval is required.
Department director forwards request for payment with invoice to the Finance Department for
approval and input into financial accounting system.
Finance produces claims roster for approval by City Council.
Payment is made by the Finance Department.
V. Purchasing Alternatives
SEALED BIDS
A formal sealed bid procedure is required for all purchases in excess of $100,000 except for
professional services.
A published notice of bid is required in the official City newspaper at least seven days in advance
of bid opening. The published notice must state where the plans and specifications can be
obtained by bidders and specifically, where the bid opening will be held. The notice may also be
published on the City’s official web site; however, this publication is in addition to the official
newspaper publication.
All bid openings are to be administered by originating department.
The preparation of all specifications are to be the responsibility of the originating department.
Required authorization for all plans and specifications is the responsibility of the originating
department.
The City Council must formally approval the bid contract.
STATE, COUNTY, AND OTHER COOPERATIVE PURCHASING CONTRACTS
The City of Victoria participates in the State of Minnesota Cooperative Purchasing Venture (CPV). This
enables participants to buy goods and services at a reduced cost under the terms of contracts already
negotiated by the State of Minnesota.
The Finance Department has access to the releases and listings of products/services that can be
purchases on state contract.
If it is determined that a product/service is on a state contract, vendors should be told that the
purchase will be made using that contract. When completing the purchasing paperwork, note that
the purchase is per state contract and indicate the contract number.
4 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
QUOTES
If a purchase is estimated to exceed $5,000 but not exceed $99,999, the purchase is to be made by
direct negotiation based upon quotations. If a purchase is made in this range, staff members are
required to obtain at least two quotes. These quotes should be in writing. If the quotes are not written,
the requestor who received the verbal quote must document the quote in writing. All such quotes must
be forwarded to the Finance Department with the purchasing documents.
EMERGENCY
Emergency situations may arise where the normal purchasing process cannot be followed for the
procurement of goods and services. An emergency means an unforeseen combination of circumstances
that calls for immediate action to prevent a disaster from developing or occurring.
Minnesota Statute §12.29 gives the Mayor the authority to declare a local emergency for up to three
days, which period may be extended by the City Council. During such an emergency, if authorized by
City Council, the City is not required to use the typically mandated procedures for purchasing and
contracts. During that time, the governing body may waive compliance with the prescribed purchasing
guidelines, including compliance with Minnesota Statute §471.345, Uniform Municipal Contracting Law.
Whenever possible the current purchasing policies and procedures should be followed even when an
emergency is declared, but as described above if the emergency requires speedy action essential to the
health, safety, and welfare of the community and if there has been an emergency declaration, the
standard purchasing policies and procedures can be waived in accordance with Minnesota Statute
§12.37.
REQUEST FOR PROPOSALS (RFP)
RFPs may be used to solicit proposals for professional services. Typical information to address in RFPs
includes:
Background and scope of the project
The project’s budget to ensure that the proposals stay within that range
Proposal requirements should include adequate information to allow for proper review and
evaluation including:
o Description of firm and qualifications, including any specialized experience related to the
project
o A list of similar projects that the firm has completed
o Project timetables including: estimate of hours, breakdown by hours by phase, and the
City’s expectation of a completion date
o Designation of a firm principal who will be in charge of the project
o Résumés for all staff who will work on the project
o Statement that either no subcontractors are allowed or that all subcontractors will be
identified and are subject to the City’s approval
o Estimate of cost to provide the service, outline of fee schedule and payment schedule
o Description of City’s selection process
o City’s evaluation criteria, which typically may include:
Quality and thoroughness of the proposal
Similar past experience and/or experience
References
Cost estimate
o The following statement must be included: “The City reserves the right to reject any and
all proposals, waive all technicalities and accept any proposal deemed to be in the City’s
best interest.”
o Submittal deadline: date, time, project name, and addressee
5 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
o Statement: “Proposers are solely responsible for delivery of their proposals to the City
before the deadline. Any proposal received after the deadline will not be considered and
will be returned.”
o Information about where questions should be directed
Attach a copy of the agreement proposed to be used for the project, including the City’s insurance
certificate. The agreement includes provisions to which the firm must agree, so it is important that they
see the agreement up front. It is suggested that the RFP be submitted to the City attorney for review
prior to distribution.
LEASE PURCHASES
All operating and capital lease agreements require approval through the Finance Department and legal
counsel prior to initiating a lease. Staff will conduct a lease versus buy analysis to determine the most
cost-effective method.
ON-LINE PURCHASES
The following guidelines are recommended for purchasing products over the internet:
Purchases should be made only from vendors that use secure servers for e-commerce.
Standard purchasing guidelines should be followed.
VI. Payment
The City of Victoria uses various processes in making payments for goods and services.
STANDARD PURCHASE ORDERS
Purchase orders are used when required by the vendor to acknowledge the City’s request for goods and
services. A copy of the purchase order will be sent to the vendor when requested.
The purchase order number used will be a combination of the department and the sequence of
orders issued for the year, e.g., the second purchase order for public works in 2014 would be
PW -201401.
Return an invoice for payment to the Finance Department when the purchase order is complete.
CHECK REQUESTS
The Finance Department policy is for bills to be paid on the claims list. For certain exceptions, requests
for checks may be used under the following guidelines:
Requests for checks are for payments that need to be made prior to the claims list. Examples
include discounts, avoiding late charges, or purchases requiring payment with an order.
BLANKET PURCHASE ORDERS, CHARGE ACCOUNTS, AND HOUSE ACCOUNTS
The City uses charge accounts and house accounts for frequently used vendors. This process requires
submission of a receipt with an account code and department approval. All new open accounts must be
authorized by the requesting department director and the Finance Department.
6 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
INVOICES
Department heads should submit invoices with an account code and department approval. If provided,
packing lists should also be submitted with the invoice. Documentation must be returned to the Finance
Department to be processed on the claims list.
STATEMENTS
The Finance Department tracks all statements – reviewing for old invoices or credits. All statements are
to be mailed directly to the Finance Department.
CREDIT CARDS
The City will issue credit cards to certain individuals to allow for more efficient purchasing and to make
purchases at businesses that no longer allow open accounts. The City has a separate Credit Card
Policy for these transactions.
ELECTRONIC FUNDS TRANSFER
Electronic Funds Transfer may be required in some cases to complete a business transaction and is
often used for recurring items such as tax withholding, PERA remittances, and utility bills.
EXPENSE REIMBURSEMENT
A completed and property authorized form is required for reimbursement to employees for City-related
expenses. Mileage will be paid at the current IRS rate. All requests must contain proper account c odes,
department approval, and original receipts must be attached where applicable. Expenses will be
reimbursed by check on the next claims roster.
VII. Disposal of Surplus Property
The City generally disposes of surplus equipment through public sale after City Council approval.
Throughout the year the City collects items to be sold at public auction and sends them to an auctioneer
with a description and number of items to be sold, and makes arrangements for those items to be
transported. Staff may also use alternative sale methods, such as eBay when warranted.
The auction house will forward a tabulation of the bids received along with payment. The information is
reviewed by the equipment manager and then the payment is forwarded to the Finance Department.
When computer equipment has reached the end of its useful life, hard drives are destroyed, and
remaining pieces are recycled through a computer recycling vendor or disposed of as waste.
VIII. Environmental Concerns
Environmentally preferable products are goods and services that have a lesser or reduced effect on
human health and the environment when compared with other goods and services that serve the same
purpose. The following is an overview of items that should be considered prior to making a purchase.
Details relating to the items can be found at the Solid Waste Management Coordinating Board website at
www.swmcb.org.
OFFICE PRODUCTS – GENERAL
Erasable boards – alternative to paper flip charts
Solar powered calculators and other devices – eliminate the need for batteries
Refillable pens, pencils, and tape dispensers – eliminate waste
Reuse file folders and binders – applying new labels extends usefulness
7 | P a g e
City of Victoria Purchasing Policy
Adopted by the City Council 2015-04-13
E-mail – alternative to paper memorandums
Double-sided copies – reduce paper waste
Reusable kitchen dishware – reduce waste
Purchase products in reusable, refillable, or returnable containers – containers may be sent back
to the vendor for reuse
COPY PAPER AND ENVELOPES
Recycled content – when possible, purchase 100% post-consumer paper
Chlorine-free paper – buying chlorine-free paper reduces pollution - choose paper labeled as
“Processed Chlorine-Free” (PCF)
White and pastel paper – fluorescent and dark colors are harder to recycle
OFFICE MACHNIES
Printers – choose printers with duplex units to save paper
Printer toner cartridges – purchase remanufactured toner cartridges from supplies that will reuse
spent cartridges
IX. Purchasing Policy Adoption
The City’s Purchasing Policy shall be reviewed by the Finance Committee. Upon recommendation by
the Finance Committee the policy shall be presented to the City Council for adoption by resolution. Any
modifications to the policy must be reviewed by the Finance Committee and adopted by resolution of the
City Council.
Page 1 of 5
Finance
Date
5/15/2020
Number
20-04
Retention
Permanent
Approval
5/19/2020
To:
ALL PERSONNEL
Subject:
PURCHASING POLICY
Responsible management of the City’s financial resources is critical to the operations of
the City of Wyoming. The Purchasing Policy has been developed to ensure proper
accountability of the public funds entrusted to the City of Wyoming and to promote the
goals of the City Council. The Purchasing Policy applies to all employees and officials of
the City and relates to the procurement of services and/or goods, unless specifically
exempted in this policy. Failure to comply with the policies and guidelines could result in
disciplinary action and/or personal financial liability.
PURPOSE
It is the purpose of this policy to:
• Clarify the system of purchasing contractual services, material, and equipment
for the City;
• Determine the levels of approval necessary before purchasing contractual
services (except professional services), material, and equipment for the City;
• Provide public confidence in the procedures used in public purchasing;
• Ensure fair treatment of all persons who deal with the City procurement system;
• Provide economy and value in City purchasing activities;
• Foster competition within the free enterprise system where possible and
appropriate;
• Provide safeguards for the assurance of a purchasing system of quality and
integrity.
• Direct City funds towards environmentally sustainable goods and services
GENERAL GUIDELINES
This policy applies to all procurements of supplies, services, and construction, entered
into by the City of Wyoming after the effective date of this policy. It shall apply to every
expenditure of public funds by a City employee for City purchasing irrespective of the
source of the funds. When the procurement involves the expenditure of federal
assistance or contract funds, the procurement shall be conducted in accordance with
any mandatory applicable federal law and regulations. Nothing in this policy shall
prevent any City employee from complying with the terms and conditions of any grant,
gift, or bequest that is otherwise consistent with law.
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The City Administrator is hereby designated the Purchasing Agent, hereinafter named
“Agent,” for the City. The Agent may delegate authority to any designee for the
preparation of specifications, the obtaining of quotations as may be required, and the
purchase of items as specified in this policy.
• The terms of this policy are applicable to the purchase of all budgeted goods and
non-professional services, and non-budgeted items. .
• City departments shall adhere to this purchasing policy.
• The Agent is hereby granted the authority to make all budgeted purchases in
accordance with the provisions of this policy for all items not specifically requiring
Council approval. For items requiring Council approval, the Agent is authorized
to solicit bids or quotes for Council approval.
PURCHASES REQUIRING COUNCIL APPROVAL
Prior approval of the City Council is to be sought for all purchases in excess of ten
thousand dollars ($10,000.00), except for the following:
• Professional services such as legal, engineering, auditing that are rendered
under an approved contract for such services.
• Utility expenditures such as electricity, natural gas and telephone services for all
city owned properties.
• Payroll and related expenses such as employee medical premiums, pension
payments and mandatory State and Federal withholding.
• Routine expenditures such as insurance premiums and bond payments which
received prior Council approval and authorization through the budgetary process.
• Public improvement projects ordered by the City Council such as street paving,
seal coating, sewer, water and storm sewer.
PETTY CASH DISBURSEMENTS
Items purchased having a value that is less than twenty dollars ($20.00) may be paid for
from the Petty Cash Fund. The Petty Cash Fund shall be maintained at City Hall. All
reasonable effort shall be made to maintain the petty cash fund cash on hand at less
than two hundred dollars ($200.00). A log of petty cash fund transactions shall be
maintained by City Hall.
PURCHASES UP TO $10,000.00
City Department Heads are authorized to purchase materials, equipment and services
having a value up to ten thousand dollars ($10,000.00) without prior approval, providing
there is funding in the budget for said purchases. Generally, these types of purchases
are for services, materials, supplies and equipment needed for day-to-day operations
The authority to award or reject any and or all bids, proposals, and/or quotes in the
amount of $9,999.00 or less for all budgeted purposes may be delegated by the Agent
Page 3 of 5
to an appropriate designee, but such purchases shall be subject to approval by the
Agent and/or designee.
PURCHASES OVER $10,000.00 AND UP TO $25,000.00
Written quotations shall be obtained from at least two (2) vendors for purchases having
a value over ten thousand dollars ($10,000.00) and up to twenty-five thousand dollars
($25,000.00), and those quotations shall be presented to the City Council for approval.
Whenever feasible the purchase shall be made from the lowest bidder offering quality
merchandise.
PURCHASES BETWEEN $25,000.00 AND $175,000.00
All materials, equipment and services costing more than twenty-five thousand dollars
($25,000.00) but less than one hundred thousand dollars ($100,000.00), competitive
bidding is allowed but not required. The city has the option of either using the
competitive bidding process or making the contract by direct negotiation. If direct
negotiation is used, the city must get at least three (3) quotations, unless the single
quote is from the State Contract or if a proprietary product situation is present, and keep
them on file for at least one year. All purchases shall be let to the lowest responsible
bidder, and the following procedure shall be followed:
1. The Department Head shall provide the Agent with notification concerning the
requested expenditure of funds for the purchase of an item(s) with a cost greater
than twenty-five thousand dollars ($25,000.00), including supporting narrative as
to whether or not the purchase is a budgeted item, and the intended source and
availability of funds. It is the responsibility of the requesting Department Head to
prepare specifications with Agent assistance.
2. If the requested purchase is a budgeted item, Council approval prior to bid letting
is unnecessary.
3. If it is a non-budgeted item, the request shall be placed on the agenda for the
next council work-session for discussion. If the Council recommends the
purchase, the matter shall likewise be placed on the agenda for the next Council
meeting.
4. If the Council authorizes bids for the purchase, the Agent or Designee shall see
that appropriate notices are published, and distribute plans and specifications to
interested persons/companies.
5. Bids shall be sealed, and held in the Administrative Office of the City of Wyoming
prior to the formal bid opening.
6. When it is time for the formal bid opening, the Agent or Designee shall open all
sealed bids which have been submitted for consideration, and read each and
every one aloud. The Agent or Designee shall then see that a report is made to
the Council concerning the bids received. The report shall contain his/her
recommendation concerning the bid to be accepted, and, if a bid other than the
lowest bid is recommended, the report shall state the reasons for such
recommendation.
7. If the Council approves the report, a motion authorizing the acceptance of the bid
shall be made.
8. The Council may, in times of emergency or when otherwise impractical, waive
Page 4 of 5
the provisions of this section.
9. Professional services are excluded from the requirements of this section, where
quality of service as well as fee will determine the acceptance of the proposals.
PURCHASES OVER $175,000
Contracts exceeding the estimated price of $175,000 must use the competitive bidding
process
EMERGENCY PURCHASES
Under emergency conditions, purchases may be made by authorized departmental
personnel provided a report of such purchase is made to the Agent as soon as practical
and to the appropriate governing body at its next regularly scheduled meeting.
Emergency conditions shall be defined as those purchases necessary to protect life,
health, and safety.
LOCAL MERCHANTS AND BUSINESSES
Taking price and service into account, the City shall give due consideration to local
merchants and businesses.
ENVIRONMENTALLY PREFERABLE PURCHASING
Environmentally Preferable Purchasing is the purchasing of products or services with a
reduced effect on human health or the environment when compared with products or
services that serve the same purpose. Products or product usage procedures which
are acknowledged to have minimal impact on the environment through their
composition, their recyclability, or through a reduction in quantity and toxicity of waste
products, energy use or water consumption are preferred.
Sustainable purchasing is both a financial question as well as an environmental one.
Increased environmental standards may result in cost increases for products and
services. The City should prioritize environmentally preferred products unless the cost
exceeds 5% of the products or services without these provisions that serve the same
purpose.
The goals of the Environmental Preferable Purchasing section of this policy are to:
- Conserve natural resources
- Reduce the use of water and energy
- Minimized environmental impacts such as pollution and use of water and energy
- Eliminate or reduce toxins that create hazards to workers or community members
- Support strong recycling efforts and utilize products where a high likelihood of
recycling exists
Page 5 of 5
- Reduce materials that are place in landfills
- Increase the use and availability of environmentally preferable products
- Encourage vendors to reduce environmental impacts in their production and
distribution systems
STAFF REPORT
DATE: May 12, 2026
DISCUSSSION
TO: Mayor and Councilmembers
FROM: Nicole Miller, City Administrator
AGENDA ITEM: Public Art Program
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
The City of Lake Elmo takes pride in collaborating with the community. Part of the wall art plan for the City Center
includes a wall for display of public art. The public art program will allow local artists the opportunity to share their work
publicly, while beautifying City facilities.
The identified wall for the public art display is on the second floor of the City Center.
The attached policy includes:
Purpose and Intent of the public art policy
Definition and guidelines for public art
Process and selection
Required information for public art applications
Duties and responsibilities-City staff and Artist
Criteria for review
Removal of public art
Exemptions to art procured or located at city owned buildings
Staff anticipate bringing the final policy to council for adoption May 19th. Staff will work with Stillwater High School staff
to do a soft rollout of the public art display for students to display their artwork throughout the summer.
Staff will work on a communications plan to roll out the program to the entire community for displaying art beginning in
the fall.
ISSUE BEFORE COUNCIL:
What changes would the City Council like to see to the draft Public Art Policy?
ATTACHMENTS:
Draft Public Art Policy
Location of Public Art Display
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the
City’s character in a fiscally responsible manner in partnership with our community.
City of Lake Elmo Public Art Policy
A. Purpose and Intent
The purpose of this Public Art Policy (“Policy”) is to enhance the City of Lake Elmo (the “City”)
through the development of a Public Art Program. The intent of this Policy is to develop processes,
policies and procedures that will:
1. Provide a process by which the City and the Lake Elmo can work collaboratively to advance
more Public Art in the Community;
2. Guide the City’s approach to Public Art and provide a mechanism for the inclusion of Public
Art throughout the City;
3. Enrich the City’s public environment for its residents, business community, and visitors by
encouraging public participation and interaction with public space;
4. Enhance community identity and pride; and
5. Provide high quality Public Art that promotes excellence and demonstrates diversity and a
variety of media.
B. Public Art
“Public Art” means works of craft or art, whether owned by the City or not, in any medium that have
been reviewed against adopted and standardized criteria, approved, and formally accepted by the
City for installation in public locations, in or on publicly owned buildings, on publicly owned land, or
in or on other locations leased or provided to the City through donation, easement or other means.
Public Art includes sculpture, murals, fountains, statues and any other form of two- or three dimensional
work in any physical medium appropriate for the location and otherwise meeting the
approval criteria.
All proposed Public Art must meet the following guidelines:
1. Public Art not owned by the City shall be subject to a License and Maintenance Agreement
between the owner of the Public Art and the City. The owner or provider of the Public Art
shall be responsible for all maintenance, insurance and repair costs associated with the
Public Art.
2. Public Art shall be accessible to public viewing.
3. The City shall retain the right to transfer Public Art from one City-owned site to another, as
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the
City’s character in a fiscally responsible manner in partnership with our community.
it deems necessary, or to remove or deaccession the Public Art if it no longer desires to
retain it as a component of the public art program.
4. Public Art shall not be approved where a condition of the approval requires permanent
exhibition.
5. In the judgment of the City, the Public Art must be appropriate for display to the general
public.
6. If a proposal accepted by the City is a concept design for Public Art, then the final product
must match the approved concept design.
C. Process for Selection
Public Art selection shall be managed by City staff. All proposals shall subsequently be reviewed by the
staff. The process for submitting proposals for approval by the City is as follows:
1. Proposals for placement of Public Art shall be made by applicants using the Public Art Display
application.
2. City staff shall evaluate the proposed Public Art.
3. City staff shall approve or reject the proposed Public Art based Criteria for Review in Section G.
D. Required Information for Public Art Application
All Public Art applications must include the following:
1. A written description/depiction of the proposed art as well as photos and/or drawing of the
Public Art.
2. The appraised value of the Public Art.
3. A description of materials used to create the Public Art, including materials needed to
display/secure the Public Art.
4. The dimensions of the proposed Public Art, including appropriate base materials needed at
the public site.
5. A description, including materials, dimensions, wording and location, of interpretive signage
for the Public Art.
6. A statement regarding the relationship of the proposed Public Art to the proposed site
including aesthetic, cultural, or historic ties.
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the
City’s character in a fiscally responsible manner in partnership with our community.
7. Statement of probable lifespan of the Public Art and annual maintenance needed to
maintain Public Art integrity.
8. A statement as to whether the Public Art is unique or duplicates other work by the same
artist.
D. Duties and Responsibilities-City Staff
1. Review, evaluate, and discuss credentials, proposals and/or materials submitted to the City
for review.
2. Coordinate physical and logistical components of Public Art installation with artist.
3. Print signage to accompany art based on description included in application.
E. Duties and Responsibilities-Artist
1. Artists are responsible for displaying art on the specified set up and removal dates and times
to be coordinated with City staff.
2. Artists understand there is no fee for displaying art.
3. Artists will be responsible for understanding criteria for displaying artwork.
4. Artist must only display artwork that they themselves have created and currently own. *An
exception to this is the display of student artwork. Staff will work with students to display their
work.
F. Criteria for Review
City staff shall review public art display applications based upon the following criteria:
1. All visual art forms and materials will be considered. Artwork reflecting any school,
movement, method or style will be considered. Artwork may be functional or nonfunctional,
conceptual or tangible, portable or site-specific.
2. The proposed Public Art should be compared with the artists’ best work and the best works
of Public Art then displayed in the City.
3. Public art should be enduring and diverse and the City should strive for diversity in style,
scale, media and artists. It should reflect the social, ethnic and structural fabric of the
community as well as the values of the City and the community.
5. Consideration should be given to structural and surface integrity and the use of materials
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the
City’s character in a fiscally responsible manner in partnership with our community.
appropriate to the location so as to minimize or eliminate maintenance and repair costs.
6. Public Art must not create unsafe conditions or otherwise increase public liability.
7. Public Art must add interest and meaning to the public location in which it is placed.
8. Public Art must be compatible in scale, material, form and content with its surrounding and
form an overall relationship with the public location. Public Art must conform to any
existing Master Plan for the site.
9. The Public Art must have social, cultural, historical or physical connection to the planned
public location.
10. Public Art whose message is exclusively religious in nature will not be accepted.
11. Public Art whose message is exclusively political in nature will only be considered if the
political message is of a historical context.
12. Artwork must not be offensive or condescending towards any race, religion, sex or sexual
orientation.
13. The City will not approve Public Art when on-going maintenance and repair of the Public Art
are required, or installation of the art is required, or the City is required to pay for the
maintenance, installation, framing, or restoration of the Public Art.
G. Removal & Deaccessioning Public Art
Deaccession is a procedure for the removal and disposal of Public Art. The City
may remove or deaccession Public Art when it finds such action to be in the best interest of the
public based upon the following:
1. As a means of improving the quality of the City’s exhibited Public Art when:
a. The Public Art has no relevance or serves no exhibition function.
b. The Public Art is duplicative of other Public Art.
c. The Public Art no longer meets the current standards for Public Art.
2. Due to concerns for public safety when Public Art becomes a hazard or a public liability.
3. The Public Art is in a seriously deteriorated condition.
4. Removal should not be based on current fashion or taste.
5. As a result of external acquisition of the Public Art.
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the
City’s character in a fiscally responsible manner in partnership with our community.
H. Exemptions
This Public Art Policy shall not apply to art procured for or located at any City owned buildings,
including specifically City Hall.
Wall hanging system for Community Art Gallery
12-19’ of rod across the top is available in white, grey, bronze or silver.
15 hooks and 6’clear rods, held on by rod sleeves to use interchangeably.
Installation includes this initial set up. Two people required for installation.
Materials approx. $795 Install $475
STAFF REPORT
DATE: May 12, 2026
DISCUSSION
TO: Mayor and Councilmembers
FROM: Nicole Miller, City Administrator
AGENDA ITEM: 2026 City Celebration Discussion
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
City Council discussed planning a City Celebration this fall. This item is a place holder for City Council to discuss
the event.
At a future regular City Council should make a motion to hold the celebration and outline the budget and the
scope of the event.
Date Type Due date for
packet Order Agenda Section Agenda item
5/19/2026 CC Meeting 5/12/26 Consent Agenda PW Operator New Hire
Consent Agenda Lease Extension for Temp Cell Tower AT&T 3303 Langly Ct
Consent Agenda Public Art display policy
Consent Agenda Approval of City Center wall art display
Closed Session Sale of Fire Station and Parks Building (tentative)
6/2/2026 CC Meeting 5/26/26 Consent Agenda State Performance Measures
Phase 2 - Downtown improvements
Consent Agenda Approve Hire of FT Fire Captains
Regular Agenda 9960 57th St - Variance
Regular Agenda High Pointe Medical - Conditional Use Permit
Discussion Summergate Assemblage Concept Plan
6/9/2026 CC Workshop 6/2/26 City Council salary
Discussion Strategic Financial Plan - Initial Review of Models, Assumptions, and Strategic Financial Goals
Lobbyist services-Margaret Vesel
Parks Coordinator position discussion
6/16/2026 CC Meeting 6/9/26
Regular Agenda 2025 Audit Presentation
Regular Agenda Limerick Village Preliminary Plat and PUD
Regular Agenda Inwood Commercial Preliminary Plat
Discussion Pulte Townhomes Concept Plan
Regular Agenda Frattalone Grading Permit
7/7/2026 CC Meeting 6/30/26
Consent Agenda Approve appointment of election judges
Consent Agenda 2nd Quarter Dashboards and Financials
Regular Agenda 2nd Quarter Goals Update
7/14/2026 CC Workshop 7/7/26 Old City Hall
Discussion Draft 2027 - 2036 Capital Improvement Program
Community Engagement Results - City 180 (tentative)
7/21/2026 CC Meeting 7/14/26
Closed Session Discuss sale of 11052 34TH ST N (tentative)
8/5/2026 CC Meeting 7/30/26
8/11/2026 CC Workshop 8/4/26
Discussion Draft 2027 Budget & Levy
Community Engagement Results - City 180
Future Council Agenda Items
*Please note: This list is subject to change*
8/18/2026 CC Meeting 8/11/26
9/1/2026 CC Meeting 8/25/26
9/8/2026 CC Workshop 9/1/26 Obstructions in ROW
9/15/2026 CC Meeting 9/8/26 Regular Agenda 2027 Preliminary Levy
Consent Agenda Appoint Election Judges
10/6/2026 CC Meeting 9/29/26 Consent Agenda 3rd Quarter Dashboards and Financials
Regular Agenda 3rd Quarter Goals Update
10/13/2026 CC Workshop 10/6/26 CIP F-012 Ladder 1 Replacement Approval
10/20/2026 CC Meeting 10/13/26 Regualr Agenda CIP F-012 Ladder 1 Replacement Approval
11/4/2026 CC Meeting Regular Agenda Bonding
11/10/2026 Special Meeting Canvass Election Results
11/10/2026 CC Workshop Employee Policies Updates
Oakland JPA
11/17/2026 CC Meeting
Regular Agenda
12/1/2026 CC Meeting
Regular Agenda
12/8/2026 CC Workshop
12/15/2026 CC Meeting