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GH 44HUGO CITY OF= EST. 1906 14669 Fitzgerald Avenue North, Hugo, MN55038 TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Ron Otkin, Finance Director SUBJECT: Approve Agreement with HGAC for Cooperative Purchasing DATE: For the City Council Meeting of August 6, 2018 DESIRED COUNCIL A. TION, (651) 762-6300 Adoption of Consent Agenda Including Approving Agreement with HGAC for Cooperative Purchasing BACKGROUND www.ci.hugo.mn.us As per Minn. Stat. 471.345, subd. 15, for a contract estimated to exceed $25,000, a municipality must consider the availability, price and quality of supplies, materials, or equipment available through the state Cooperative Purchasing Venture (CPV) before buying through another source. If a municipality does not utilize the CPV, it 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. The Houston -Galveston Area Council (HGAC) is a nationwide government procurement service striving to make the governmental procurement process more efficient. All contracts available to participating members have been awarded by virtue of a public competitive procurement process compliant with state statutes. HGAC primarily offers products that are used in Public Safety and Public Works departments. A wide variety of capital equipment is under contract and can be customized to fit the City's specific requirements. HGAC has more than 40 years of experience in cooperative purchasing and serves more than six thousand local governments across the United States, including 199 Minnesota public entities. There are no annual membership dues required to purchase thru HGAC. To become a member (end -user) the City must enter into a Contract with HGAC that can be terminated upon 30 days written notice. HGAC offers an expedited procurement process which can eliminate the need for preparing detailed specifications while satisfying all other requirements for competitive bidding. This can greatly the assist the Fire Department in procuring equipment that can be paid for with grant funds. It can even streamline the process of procuring fire trucks. RECOMMENDATION The Finance Department recommends that the City Council authorize the execution of a contract with HGAC subject to review by the City Attorney. ATTACHMENTS Proposed Contract Minn. Statute 471.345, Subd. 15.