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`12'/16/96 MON 11:05 FAX 6123407800 DORSEY WHITNEY [a 003 <br /> DORSEY & WHITNEY ILLP <br /> Mr. Michael J. Mornson <br /> December 16, 1996 <br /> Page 2 <br /> A more difficult question is presented by the fact that the City may or may not <br /> be In a position to accept a bid for all of the equipment for two stores at this time. <br /> Although both bids break down the costs between�the two stores,bids were not <br /> requested- in the alternative for one or two stores, and the bids were not submitted <br /> on an alternative basis for one or two stores. Even If a successful bidder is willing to <br /> agree that It would still make the same bid for a single store as shown in the cost <br /> breakdown without having the contrAct cover the other store, the unsuccessful <br /> bidder could argue that this is a significant change in the specifications and that it <br /> would have bid differently had it been able bid on only one store. For this reason, I <br /> believe the Council must determine whether it Is willing to enter into a firm <br /> contract to buy all of the equipment and software for two stores. If it is, I am ofthe <br /> opinion that the bid from RDS could be accepted, since it would be the only bid <br /> remaining if the bid from TRS is rejected. <br /> If, on the other hand, the Council concludes that it presently can enter into a <br /> contract for equipment and software for only store, then In my opinion the Council <br /> should reject both bids, since they were not intended to cover only a single store. <br /> The City has clearly reserved the right to reject all bids. This is expressly stated on <br /> the first page of the advertisement for bids. <br /> The City could then wait and determine whether or not.it will have a second <br /> store, or it could obtain new bids now for a single store, or it could obtain quotes for <br /> a single store If you believe that the cost for a single store will,be less than $25,000. If <br /> the cost is between$10,000 and $25,000, then-under Minnesota Statutes §-471.345, . <br /> subd. 4, the City may, without advertising for bids or otherwise complying with the <br /> requirements of competitive bidding, obtain at least two quotes and enter into a <br /> cofitract by direct negotiation. <br /> I hope this answers the questions you had, but if you have any further <br /> questions, please let me know. <br /> you <br /> )Y�ry)Aily;7m <br /> e <br /> William R. Soth <br /> WRS/ms <br />