CR2002-006 Ord 866 Amending Section 310 City Code
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. February 5, 2002 Council Report 2002-06
ORDINANCE AMENDING SECTION 310
OF THE HOPKINS CITY CODE
Proposed Action
Stafr recommends that the Council approve the following motion: Move to approve Ordinance 2002-866 for
first reading.
Approval of this motion will begin the process of amending section 310 of the Hopkins City Code to remove
the need to seek bids for contracts under $50,000.
Overview
Section 310.09 of the Hopkins City Code states that: "City contracts shall be let, executed and delivered as
provided in MilU1esota Statutes, section 471.345 and the city charter." In April of 2000 section 471.345 was
amended to raise the dollar amount of a contract that required bids from $25,000 to $50,000.
The Hopkins City Charter currently sets the limit at $25,000 but includes the language: II If at any time in the
future there should be enacted any statute by the State of Minnesota providing for an amount larger than
$25,000 before the requirement of competitive bids, the City Council may pass and adopt ordinances in
. conformity with such statutes and thereafter proceed thereunder."
Staff is proposing that the City Council approve such an ordinance.
Primary Issues to Consider
. Why should this change be made?
Requiring bids costs the City time and money. Each project the City has to bid costs over $300 in
advertising costs alone. This cost does not include the extra staff and potential consultant time
(approximately 5-10 hours per project) needed to do the bidding. The bidding process itsel factually
takes 4-6 weeks which tends to cause administrative and construction related problems and
complications.
. What assurances are in place the City will receive the product at a reasonable cost?
State law requires two written quotes and City policy requires three written quotes for any purchase
above $10,000.
Supporting Information
. Ordinance 2002-866
. Mi nnesota Statutes, Section 471.345
.
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CITY OF HOPKINS
. HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2002-866
AN ORDINANCE ESTABLISHING THE DOLLAR LIMIT ON CONTRACTS THAT
REQUIRE COMPETITIVE BIDS
The City Council of the City of Hopkins does hereby ordain:
Section 1. The Hopkins City Coder Section 310 is hereby amended to
read as follows:
310.0l. Advertising for bids. Except as otherwise provided by
law, whenever the city council authorizes the advertising for bids
for work, labor r services, material or supplies, the advertisement
for bids may provide that the same will be publicly opened by the
manager or designee ot hi8 office in the city hall at a time
specified in the notice other than at the time of a council
meeting.
310.03. Opening and tabulating bids. The manager or designee
shall publicly open the bids at the time specified in the notice.
The manager or designee shall thereafter tabulate the bids and make
~ recommendations thereon, and present the bids, the tabulation
. and the monogcr'8 a recommendation to the council at its next
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regular meeting or special meeting called for that purpose.
310.05. Publication of notice. Except as may be otherwise
provided by law, the notice for bids shall be published once in the
legal newspaper of the city, In an issue of such newspaper which is
dated at least ten days before the date set tor opening bids and
may be published in such other magazines or newspapers as In the
opinion of the manager will cause the notice to come to the
attention of prospective bidders.
310.06. Contracts/Bjds. In all cases of work to be done by
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l-::ontract, or for the purchase of personal property of any kind,
where the amount involved is more than $50,000 the City Manager or
designee shall advertise for bids In such manner as may be
designated by the Council. Contracts over $50rOOO shall be let to
the lowest responsible bidder. The Council may reject any and all
bids.
310.07. Contract defined. The term "contract" has the meaniny
glven it by Minnesota Statutes, section 471.345.
310.09. Governing law. City contracts shall be let, executed and
delivered as provided in Minnesota Statutesr section 471.345 and
. the city charter.
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Section 2. The effective date of this ordinance shall be twenty
. days after publjcation.
First Reading: February ':J, 2002
Second Reading: February 19, 2002
Date of Publication: February 27, 2002
Date Ordinance Takes Effect: March 19, 2002
Gene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
APPROVED AS TO FORM AND LEGALITY:
. City Attorney Signature Date
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. 471.345 Uniform Municipal Contracting Law.
Subdivision 1. Municipality defined. For purposes
of this section, "municipality" means a county, town, city,
school district or other municipal corporation or political
subdivision of the state authorized by law to enter into
contracts.
Subd.2. Contract defined. 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.
Subd. 3. Contracts over $35,000 for municipalities of
less than 2,500 population; $50,000 for all others. If the
amount of the contract is estimated to exceed $35,000 for
municipalities of less than 2,500 population, or $50,000 for all
others, sealed bids shall be solicited by public notice in the
manner and subject to the requirements of the law governing
contracts by the particular municipality or class thereof
provided that with regard to repairs and maintenance of ditches,
. bids shall not be required if the estimated amount of the
contract does not exceed the amount specified in section
103E.705, subdivisions 5, 6, and 7.
Subd. 4. Contracts from $10,000 to $35,000 for
municipalities of less than 2,500 population; $50,000 for all
others. If the amount of the contract is estimated to exceed
$10,000 but not to exceed $35,000 for municipalities of less
than 2,500 population, or $50,000 for all others, the contract
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.
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