(A) Contracts to be in writing. All contracts involving the city for greater than $25,000 shall be written.
(B) Signing of contracts. All written contracts for more than $25,000 shall be signed by the authorized agent designated by the City Council.
(C) Municipal contracts. A contract for the sale, purchase or rental of supplies, materials or equipment or for the construction, alteration, repair or maintenance of real or personal property shall be established in accordance with the following procedures. No provision herein shall supersede the requirement that all city and departmental expenditures must be within the parameters of the duly adopted annual budget.
(1) Contracts less than $25,000. If the amount of the contract does not exceed $25,000, the City Administrator is authorized to directly enter into the contract in the open market without first obtaining Council approval.
(2) Contracts from $25,000 to $175,000. If the amount of the contract is estimated to exceed $25,000 but not to exceed $175,000, the contract may be made either upon sealed bids or by direct negotiation, by obtaining 2 or more quotations for the purchase or sale when possible and without advertising for bids. All quotations shall be kept on file for at least 1 year.
(3) Contracts over $175,000. If the amount of the contract is estimated to exceed $175,000, sealed bids shall be solicited by public notice published.
(D) Special rules for assessment contracts. When the Council determines to make an improvement and to assess the cost of the improvement against the benefitted property, then the requirements and procedures concerning creation of the improvement contract shall be in accordance with the requirements of M.S. § 429.041, as it may be amended from time to time.