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Home My WebLink About4J - Publicly Owned CommoditiesSTAFF AGENDA REPORT AGENDA #: PREPARED BY: SUBJECT: DATE: FRANK BOYLES, CITY CONSIDER APPROVAL OF ORDINANCE 94-12 AMENDING SECTION 1-6-5-D AND E AND SECTION 1-12-1-4 OF THE PRIOR LAKE CITY CODE REGARDING PURCHASES AND SALES. AUGUST 15, 1994 BACKGROUND: DISCUSSION: Earlier this year the City Council authorized the sale of excess soil from the business office park. The existing City Code provides that sales of personal property in excess of $2000 must be approved by the City Council. This ordinance provision dates back to 1974. Since the adoption of this ordinance there have been changes in Minnesota Statutes liberalizing purchase and sale restrictions. The Prior Lake City Code should be revised to reflect statutory authorizations. Two statutes are relevant to the ordinance amendment. The first, Minnesota Statutes 412.691 confirm that the Manager is the chief purchasing agent for the city. All purchasers for the city and all contracts shall be made and let by the Manager when the amount of the purchase or contract does not exceed $15,000 unless a lower limit is provided for by the City Council. The Statute goes on to say that claims resulting therefrom must be audited and approved by the Council. All other purchases, that is, those above $15,000 must be let by the Council after the recommendation of the manager has been provided. The second statute is Minnesota Statute 471.345 known as the "Uniform Municipal Contracting Law". This statute provides that contracts in excess of $25,000 may be entered into only after sealed bids have been solicited following public notice. The City Council must approve all such purchases. Professional services such as architects, engineers and attorneys do not require a public bid. The law further states that contracts from $10,000 to $25,000 may be made either through sealed bids or by direct negotiations provided that two or more quotations are obtained. Contracts of less than $10,000 may be made either upon quotation or open market at the discretion of the city. The attached ordinance amendment 94-12 provides for the following: 1. Quotes will be received for goods estimated to cost $5000 or more and the order is to be placed with the lower price quote, provided all of the things are comparable. The previous ordinance provided for a $300 maximum. -1- 4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ALTERNATIVES: RECOMMENDATION: ACTION REQUIRED: ~The City Manager has the authority to make or let purchase contracts for routine service equipment or supplies which do not exceed $15,000. Previously, the maximum was $1,000. Any purchase in excess of $15,000 would have to be approved by the City Council and the method of acquisition would be subject to the Uniform Municipal Contracting Law. Section 1-12-1-4 of the City Code addresses the sale of supplies, materials or equipment. Four revisions are included in this section which would make the City Ordinance consistent with State Uniform Municipal Contracting Law provisions (see ordinance amendment). The revisions contained herein are primarily "housekeeping" and are fully consistent with the Uniform Municipal Contracting Law. I believe that they continue to provide for a reasonable process for acquisition dr sale and which are consistent with the state laws. The proposed guidelines are not needlessly cumbersome nor do they inhibit the staff's ability to purchase as necessary to get the day-to-day work done. Council has the following alternatives: 1. Adopt this "housekeeping" amendment as part of the consent agenda. 2. Remove the item from the consent agenda for further discussion. 3. Take no action and leave the existing city code in place. Alternative # 1. I believe it is important for efficient work operations that the City Code be brought into compliance with the current State Statutory guidelines on purchasing and sale of materials, supplies and services. Motion and second to adopt the consent agenda including this item. AGN8EWRT -2- 'LIIMMEI'4-I,IELSSN TEL No. 612 349 6055 3ur, 29,94 9:23 P'.02 CITY OF PRIOR LAKE ORDINANCE NO. 94-12 AN ORDINANCE AMENDING SECTIONS 1-6-5(D) AND (E) AND SECTION 1-12-1-4 OF PRIOR LAKE CITY CODE. The City Council of the City of Prior Lake does hereby ordain: Sections 1-6-5((D) and (E) of Prior Lake City Code are hereby amended to read as follows: (D) Where there is more than one feasible source of supply for an item having a cost of five thousand dollars ($5,000) or more, the City Manager shall request price quotations from at least two (2) sources and shall place the order at the lowest price quoted, provided the items are of comparable quality, unless the City Council otherwise directs. (E) The City Manager shall have authority to make or let purchase contracts for routine service equipment or supplies for which the cost does not exceed fifteen thousand dollars ($~5,000). Section 1-12-I-4 of Prior Lake City Code is hereby amended to read as follows: All sales of City supplies, materials or equipment, or the rental thereof, shall comply with the provisions of Minnesota Statutes section 471.345, "Uniform Municipal Contracting Law," as amended from time to time, which is incorporated herein by reference. (B) If the amount of the contract is estimated to be equal to or less than the amount set forth in Minnesota Statutes section 471.345, subd. 5, the contract may be made in the open market by the City Manager, but so far as practicable, said contract shall be based on two (2) or more quotations which shall be kept on file one year from the date of receipt. (c) If the amount of the contract is estimated to be within the range set forth in Minnesota Statutes section 471.345, subd. 4, the City Manager may authorize either the receipt of sealed competitive bids or directly negotiate by obtaining at least two (2) quotations without advertising for bids or otherwise complying with the requirements of competitive bidding. The City Manager may establish the time for receipt of the sealed bids or quotations or such other requirements as he deems appropriate. After review of the bids or quotations and any other comments or information he may require, the City Manager shall make a recommendation to the City Council. The City Council shall then either approve or disapprove the sale of the property or, if the sealed bid (D) procedure was not used, refer the matter back to the City Manager for the taking of additional quotations. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof. If uhe amount of the contract is estimated to exceed the amount set forth in Minnesota Statutes section 471.345, subd. 3, the City Manager shall require sealed bids to be solicited by public notice in the manner and subject to the requirements of competitive bidding for the City. This ordinance shall become effective from and after ins passage and publication. Passed by the City Council of the City of Prior Lake this day of , 1994. ATTEST: City Manager Mayor Published in the Prior Lake American on the 1994. Drafted By: Lommen, Nelson, Cole & Stageberg, P.A. 1800 IDS Center Minneapolis, Minnesota 55402 day of d71.26 [Repealed, 1965 c 670 s'~4] d71.~17 [Repealed, 1965 c 670 s 141 4'/1,28 [Repealed, 1965 c 670 s 141 4'71.29 [Repeated, 1965 c 670 s 14] 4'/Ii0 [Repealed, 1965 c 670 s 14] 4'71.31 [Repealed, 1965 c 670 s 141 471.32 [Repealed, 1965 c 670 s 141 471.323 [Repealed, 1965 e 670 s 14] 4'/1,33 [Repealed. 1965 c 670 s 14] !.34 [RepcalecL 1959 c 26I s 4] ,. · ~" Subdivision 1. Municipality d~inad. For purposes et tins ~cuon, mum~ap .~ means a county, tow~, city, school district or other municipal corporation or political subdivision of the state authorized by law t,o, enter into contracts. . ~ Subd 2 Contract ~tefined. A 'contract means an agreement entcre~l into ~¥ 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 pmp- crty'$ubd. 3. Contracts over $2S,1N!0. If lhe amount of the contract i~ estix~ted exceed $25,000, sealed bids shall be solicited by public notice in the manner a~d subject to the requirements of the law $ovemin~ ~ontra~s bl~ the pa~ictflar municipali~ or claes thereof provided that with re/ard to repairs and nmintenance of ditche~, biers shall not be requ/red if the estimated amount of the contract does not exceed the amount specified ia s~ction 103]/.705, subdivisions 5, 6, and 7. SulXl. 4, Conlracts f~m $10,000 m $~-~,000, Hthe amount of the contract is mated xo exceed $10,000 but not to exceed $25,000, the contract may be made either upon sealed bids or by dir~...negotiati.on, b_y o~b_.~_~_t~o.o,.r; purchase or sale when possible, and ~without adv~ru~,,,l~ s,~ ...... . trig with lhe requirements of competitive bidding. All quotation~ obtameA shall be kept on file for a period of at least one year at~er r~c~ipt thereof- market, in thc d~scrawn of thc iovcrmng body. It",.he cont. rmc~ ~ mag it shall be based, so fax as practicable, on at least two quotations which shall be ke~t on file for a period of at least one year at~er their receipt. Subd. Sa. County or team r~at~l contra~. Il'the amount ora zounty or town con- tract for the rental of exluipment is estimateat to be $60,000 or less, the contract may, in the discretion of the county or to,sca board, be made by direct negotiation by obtaila- lng two or more quotations for the rental when possible a~d without advertisin8 for bids or otherwise complyizg ~ith the requiizmenis of competitive biddS.ug. All quota- tions shall be kept on file for a period of at least onn year after their receipt. Subd. 6. Applicability of otl~r laws. The purpose of this s~'tion is to establish for all municipalities, uniform dollar limitations upon contracts which shall or ma~ be e~ltcred into on the basis of competitive bids, quotations or purchase or sale in the open market. To the extent inconsistent with this purpose, all laws govemixtg col~lra¢ts by a particular municipality or class thereof ara superseded. In all other respects such laws shall continue applicable. $ubd. ?. gum labor stm~lards. Nothini in this section shall be construed to prohibit any municipalitT from adopting rules, regulations, or ordinances which estab- lish the prevailin$ waae rate as defined in section 1'/7.42, as a minimum standard for wa$¢s and which establish the hours and working conditions prevailin$ for the largest number of workers engaged in the same cla.~ of labor within the area as a minimum C standard for a contractor's employees which mu.st be agr~d to by any contractor before 'STATUTORY CITIES era continue. When any op~on~l ~ment is resumed, terms of then abandonment; but un~ ~e first cUon, the clerk sh~l! not serve 'as a date one Council ~member' an c/ties can consist'of t~ree'io~: five nbers in additlor, ~o the mayor and former text ace main volume, :ity hay/rig a larger council u~,der rased of five or seven members az provided In section 412.571, of provided in that section, the clerk the council for indefinite ~rms. cfi shall, except a~ p'rovlded in ~ mayor end fo~ or six council ;......, : . ': . : STATUTORY CITIES 412.641., Mz~nager ,"' ~,u,bdiv/sion L:':,?he d~y 'manager. sh~.'b, ~oeen by ~e court~ solelv.'on' ' "' "" ~mm~,'e~e~ence, ~nd a~a~Uve qa~ifi~ona and need not be a rea/dent '~e ~meof appo/n~enL' ~e manager sh~ be.. ~ppoin~d for ~ ~de~ p~od ~nd be removed by~e eoun~ at anF amc; but.'~ ~ng s~ed ~ mana~ for one dry mana~r m~y dem~d '~t~n '~ee '~nd '~ pubUe he~g on ~e ch~ges before ~ouadl.pnor. ~ ~e da~ when ~n~ remov~ ~ea effee~ A dem~d for ~t~n chis ~nd · he~ng m~t be made ~in seven da~ of no~Uon of the ~un~'a in~nt ~ remove d~ mana~. ~e ~un~ ~h~ act a d~ ~d a re~onable ~e for a'pub~c he~ng, must be' held ~tn 80 d~ 'of ~e demand and may no: be reconvened or ~cessed un~ ~er d~, absent appmv~ of ~e coundL,' ~e: co~ sh~ no~ ~e dry m~ger ~n five da~ of ~e he~, of ~e eounal'a ded~on ~ m~n or remwe ~e d~ reenact. deals/on of ~e 'ioun~ ia find.. Pen~ng su~ 'berg ~d removal, ~e ~uncfl may suspend ~e mana~r, ~ or ~out pay,' at ~e' ¢oun~'$ ~e~efion, ~m 'o~ce~ ~e co~ may desi~a~ some p~perly qu~ed pe~n ~. p~o~ ~e duUoe of ~e manag~ d~ng His~ric~ and S~tu~w Notes 1993 Le~da~on . ' · , · ~ rot puMic h~gs, and the finality of coun- ts 1~3 ~endment, ~ subd~'l,:~s~d ~o" .ell d~ions, and prodded that the sus~nsion ~d .~ough s~ Sen~nc~ ~ W no~. ~d ~ ~th or ~out ~y ~ the ~en~ sen- ~e manager sh~l be ~e ~ef p~ing ~ent of ~e ~. ~1 p~h~es f~ ~e dt and .~ ~l be m~de or let b ~ a erw Y (~con~~~ ~. ~._. hen ~e amount of the pur~e or ..... ~ ................. ~ ~um~ a~a approves ny ~e eoun~ ~ om~d [, -' 412.27L ~ o~er push.es ah~l be made and ~ o~ ~n~ let by ~e coun~ recommenda~on of ~e mans~r.h~ ~t be~ ob~Jned..~ con~, b~nds men~ o~ eve~ Mad ~ w~ch the dty ~ a P~'eh~ be ai~ed by ~e m~yor ~d man~ on beh~f of ~e ~ ~d sh~] ,be.[~cu~d in ~e n~e of ~e ~y.. ~ec~ ~e day ~r ~ enactme~ Laws 1992, Laws 1992, c. ~, [ ~ pro,des ~at La~ 199i, ": · - . ,. ~e m~ager sh~l prep~e ~e ~Uma~s for. ~e a~a bU~e~. ~'e budget sh~ ~nde and ~ Include ~1 ~e ~nds of ~e ~ty, ~cept ~e ~ds made up of proceeds of bond issue~, u~ ~nds, ~nd eped~ ~s~ent ~nda, ~d may Mduae any ~f ~u~ ~dS'at dis~eaon of ~e count. ~e es~s~s of ~en~es for each ~nd budge~ sh~ be ~ged for each dep~,ent or ~aon of ~e d~ under ~e foxing heads: . and. in,rest on bo~ds ~d o~er ~ed ch~es;' '(3) ~pl~ oufla~ (for new 412.701 -