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5.g) Joint Powers Agreement with the State of Minnesota for Cooperative Purchasing Meeting Date: 1/17/2012 Agenda Item: ��-! _ � � City Council Agenda Report City of Scandia 14727 209�' St. North Scandia, MN 55073 (651) 433-2274 Action Requested: Authorize signature of a Joint Powers Agreement with the State of Minnesota allowing the City to make purchases using state contract prices. Deadline/Timeline: N/A Background: • In 2009, Scandia entered into a joint powers agreement with the Department of Administration Materials Management Division, which allows broad access to state contract pricing for a wide variety of items. The City has used this agreement to obtain favorable pricing on many purchases, particularly vehicles and heavy equipment. • The original agreement was renewable every 5 years. The State has requested that the City execute a new agreement, which eliminates the renewal requirement. The new agreement will remain in effect until canceled by either party (with 30 days written notice.) Recommendation: I recommend that the Council authorize the Mayor to sign the Cooperative Purchasing Agreement. Attachments/ • Letter dated December 21, 2011 from Minnesota Materials and Materials provided: Management Division • Cooperative Purchasing Agreement Contact(s): Prepared by: Anne Hurlburt, Administrator (cooperative purchasing agreement) Page 1 of 1 O1/12/12 ���1L�1. innesota MATERlALS MANAGEMENT DIVlSION Cooperative Purchasing Venture December 21, 2011 Anne Hurlburt City of Scandia 14727 209th St No Scandia, MN 55073 Thank you for your membership in the Materials Management Division's(MMD)Cooperative Purchasing Venture (CPV). Your use of state contracts is not only beneficial to your organization, but allows the state to obtain the best possible pricing and terms in our cooperative purchasing efforts. MMD has reviewed its process for maintaining agreements and renewals for our local government CPV members. In the interest of streamlining our processes and for the convenience of our members, we have determined to eliminate the annual renewal requirement and are now allowing the agreement to extend beyond five years. I have enclosed a new agreement for signature by your agency. Any previous agreement is void. The new agreement will remain in effect until canceled by either party(with 30 days written notice). Please have the agreement signed by an authorized person and return the original to me. A fully executed copy will be sent to you for your records after signature by the state. Your CPV permit number/security access code will not change. Your access code enables you to utilize MMD's website to access information on all contracts available to CPV members. When placing orders with contract vendors, be sure to reference the applicable State of Minnesota contract number to ensure you receive the State contracted pricing. If you have any questions regarding registration, please call me at 651.201.2404. If you have any questions regarding contract information, please call the MMD HelpLine at 651.296.2600. Sincerely, -- --- I ' ��`._¢� �§��h 6'Y �1 ����f � �, �.ev�. � �. �02 eu,�-rrL- � - � � � �n11 � o�c Sherry L. Brown � Business Administrator GVTY OF SC1`,�"��a_ Enclosure 112 Administration Building/50 Sherburne Avenue/St. Paul, MN 55155 Phone:651.201.2404/Fax:651.297.3996/Email: Sherry.Brown@state.mn.us Persons with a hearing or speech disability may contact us by calling Minnesota Relay at 711 The Department of Administration is an Equal Opportunity Employer � COOPERATIVE PURCHASING AGREEMENT ������� Under the Authority of Minnesota Statutes § 16C.03, Subdivision 10 and MATERlALSMANAGEMENTDIVISION MII�rIeSOta StatUteS § 47�.�J9, Subdivision 1 Cooperative Purohasing Venture This Joint Powers Agreement is between the State of Minnesota, through its commissioner of Administration, Materials Management Division ("Division") and CITY OF SCANDIA ("Authorized Entity"). Pursuant to Minn. Stat. § 16C.03, subd. 10, the Division acquires various supplies, commodities, equipment, and services for state agencies and governmental units (as defined in Minn. Stat. § 471.59, subd. 1) through competitive bidding or requests for proposals. The Division, through Minn. Stat. § 16C.11, and the Authorized Entity wish to combine their purchasing functions, as specifically provided below, so that the Authorized Entity may avail itself of the prices which have been agreed upon by the Division and its vendors. The parties agree as follows: 1. Term. This joint powers agreement will be effective on the date State obtains all required signatures under Minn. Stat. § 16C.05, subd. 2, and remains in effect until canceled by either party upon 30 days' written notice to the other party. 2. Services. The Division will make its contracts for commodities and services, as listed on the State of Minnesota's Contract Index, available to the Authorized Entity. 3. Use of Division Contracts. To purchase commodities or services from the Division's contracts, the Authorized Entity must issue a purchase order in accordance with the terms and conditions of the Division's contracts and any requirements applicable to the Authorized Entity's governing body. The Authorized Entity must send purchase orders directly to the applicable vendor and will make payments directly to the vendor in accordance with its established procedures and terms of the Division's contract. The Authorized Entity will not use the goods available under the Division's contracts for the purposes of resale. The Authorized Entity must be the end user of the goods purchased. 4. Liability. The Authorized Entity agrees that neither the Division nor its employees personally assume responsibility or liability for any amounts due or claimed to be due pursuant to any purchase order entered issued by the Authorized Entity. The Authorized Entity will indemnify, save and hold harmless the Division and its employees from any loss, damage or MMD-CPV Agreement 1 a COOPERATIVE AGREEMENT CREATING COOPERATIVE PURCHASING VENTURE MEMBERSHIP ��z�2���� MS§471.59,Subd.1 * COOPERATIVE PURCHASING AGREEMENT ������� Under the Authority of Minnesota Statutes § 16C.03, Subdivision 10 and MATERlALSMANAGEMENTOMSION MII��IeSOta StatUteS § 47�.�J.9, Subdivision 1 Cooperalive Puichasing Venture expense, including payment of attorney fees allowable by law, which arise or may arise from the Authorized Entity's use of this joint powers agreement and from any dispute or claim arising from any transaction between the Authorized Entity and the Division's vendors, whether or not the loss, damage, dispute or claim arises during or after the period of this cooperative agreement. The Division's liability will be governed by the provisions of Minn. Stat. § 3.736. CITY OF SCANDIA STATE OF MINNESOTA "Authorized Entity certifies that the appropriate person(s) have executed this cooperative agreement on behalf of "By Delegation" the Authorized Entity as required by applicable articles, bylaws, resolutions or ordinances." By: By: (Authorized Signature) Materials Management Division (Title) (Date) Permit Number/Access Code: (Address) (Date) MMD-CPV Agreement 1a COOPERATIVE AGREEMENT CREATING COOPERATIVE PURCHASING VENTURE MEMBERSHIP (12/2011) MS§471.59,Subd.1