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　　123B.52 Contracts.

　　Subdivision 1. Contracts. A contract for work or

　　labor, or for the purchase of furniture, fixtures, or other

　　property, except books registered under the copyright laws, or

　　for the construction or repair of school houses, the estimated

　　cost or value of which shall exceed that specified in section

　　471.345, subdivision 3, must not be made by the school board

　　without first advertising for bids or proposals by two weeks'

　　published notice in the official newspaper. This notice must

　　state the time and place of receiving bids and contain a brief

　　description of the subject matter.

　　Additional publication in the official newspaper or

　　elsewhere may be made as the board shall deem necessary.

　　After taking into consideration conformity with the

　　specifications, terms of delivery, and other conditions imposed

　　in the call for bids, every such contract must be awarded to the

　　lowest responsible bidder, be duly executed in writing, and be

　　otherwise conditioned as required by law. The person to whom

　　the contract is awarded shall give a sufficient bond to the

　　board for its faithful performance. Notwithstanding section

　　574.26 or any other law to the contrary, on a contract limited

　　to the purchase of a finished tangible product, a board may

　　require, at its discretion, a performance bond of a contractor

　　in the amount the board considers necessary. A record must be

　　kept of all bids, with names of bidders and amount of bids, and

　　with the successful bid indicated thereon. A bid containing an

　　alteration or erasure of any price contained in the bid which is

　　used in determining the lowest responsible bid must be rejected

　　unless the alteration or erasure is corrected as provided in

　　this section. An alteration or erasure may be crossed out and

　　the correction thereof printed in ink or typewritten adjacent

　　thereto and initialed in ink by the person signing the bid. In

　　the case of identical low bids from two or more bidders, the

　　board may, at its discretion, utilize negotiated procurement

　　methods with the tied low bidders for that particular

　　transaction, so long as the price paid does not exceed the low

　　tied bid price. In the case where only a single bid is

　　received, the board may, at its discretion, negotiate a mutually

　　agreeable contract with the bidder so long as the price paid

　　does not exceed the original bid. If no satisfactory bid is

　　received, the board may readvertise. Standard requirement price

　　contracts established for supplies or services to be purchased

　　by the district must be established by competitive bids. Such

　　standard requirement price contracts may contain escalation

　　clauses and may provide for a negotiated price increase or

　　decrease based upon a demonstrable industrywide or regional

　　increase or decrease in the vendor's costs. Either party to the

　　contract may request that the other party demonstrate such

　　increase or decrease. The term of such contracts must not

　　exceed two years with an option on the part of the district to

　　renew for an additional two years. Contracts for the purchase

　　of perishable food items, except milk for school lunches and

　　vocational training programs, in any amount may be made by

　　direct negotiation by obtaining two or more written quotations

　　for the purchase or sale, when possible, without advertising for

　　bids or otherwise complying with the requirements of this

　　section or section 471.345, subdivision 3. All quotations

　　obtained shall be kept on file for a period of at least one year

　　after receipt.

　　Every contract made without compliance with the provisions

　　of this section shall be void. Except in the case of the

　　destruction of buildings or injury thereto, where the public

　　interest would suffer by delay, contracts for repairs may be

　　made without advertising for bids.

　　Subd. 1a. Construction contracts. A project labor

　　agreement is a hiring agreement that establishes wages, uniform

　　work schedules, and rules for dispute resolution to manage

　　construction projects that generally require, among other

　　things, payment of union dues or fees to a labor organization or

　　membership in or affiliation with a labor organization. A

　　school board must adopt at a public meeting a written resolution

　　authorizing a project labor agreement to construct or repair a

　　facility through a contract or bid. The board must publish in

　　the official newspaper of the district notice of the meeting at

　　least 30 days in advance.

　　Subd. 2. Contract within budgeted amounts. The board

　　may authorize its superintendent or business manager to lease,

　　purchase, and contract for goods and services within the budget

　　as approved by the board. Any transaction in an amount

　　exceeding the minimum amount for which bids are required must

　　first be specifically authorized by the board and must fulfill

　　all other applicable requirements in subdivision 1.

　　Subd. 3. Transportation; fuel. Notwithstanding the

　　provisions of subdivision 1 or section 471.345, a contract for

　　the transportation of school children, or a contract for the

　　purchase of petroleum heating fuel or fuel for vehicles may be

　　made by direct negotiation, by obtaining two or more written

　　quotations for the service when possible, or upon sealed bids.

　　At least 30 days before awarding a directly negotiated contract,

　　the district must, by published notice, request quotations for

　　the service to be provided. All quotations obtained must be

　　kept on file for a period of at least one year after receipt.

　　If a contract is made by direct negotiation, all quotations must

　　be public information. If a contract is made upon sealed bids,

　　the procedure for advertising and awarding bids shall conform to

　　the provisions of subdivision 1 except as otherwise provided in

　　this subdivision.

　　Notwithstanding the provisions of subdivision 1 or section

　　574.26, a performance bond must be required of a contractor on a

　　contract for the transportation of school children only when

　　deemed necessary by and at the discretion of the board. Such a

　　performance bond must be in the amount determined by the board.

　　Subd. 4. Asbestos removal and polychlorinated biphenyls

　　cleanup. Notwithstanding any law to the contrary, districts

　　may, without an election, enter into contracts extending beyond

　　the end of the fiscal year to pay the costs of removal or

　　encapsulation of asbestos or cleanup of polychlorinated

　　biphenyls found in school buildings or on school property.

　　Subd. 5. Contracts with board members. Members of

　　the board are authorized to contract with, to work for, and

　　furnish supplies to the district subject to the provisions of

　　section 471.87.

　　Subd. 6. Disposing of surplus school computers.

　　Notwithstanding section 471.345, governing school district

　　contracts made upon sealed bid or otherwise complying with the

　　requirements for competitive bidding, other provisions of this

　　section governing school district contracts, or other law to the

　　contrary, a school district under this subdivision may dispose

　　of a surplus school computer and related equipment if the

　　district disposes of the surplus property by conveying the

　　property and title to:

　　(1) another school district;

　　(2) the state Department of Corrections;

　　(3) the Board of Trustees of the Minnesota State Colleges

　　and Universities; or

　　(4) the family of a student residing in the district whose

　　total family income meets the federal definition of poverty.

　　HIST: Ex1959 c 71 art 4 s 18,19; Ex1967 c 1 s 6; 1969 c 107 s

　　1; 1973 c 123 art 5 s 7; 1974 c 521 s 13-15; 1975 c 59 s 1,2;

　　1975 c 199 s 1; 1976 c 168 s 1; 1976 c 239 s 32; 1976 c 271 s

　　39,40; 1978 c 706 s 16-18; 1978 c 764 s 33-35; 1979 c 295 s 1;

　　1980 c 609 art 6 s 17,18; 1981 c 358 art 6 s 13; 1982 c 548 art

　　4 s 8; 1983 c 314 art 2 s 1; art 6 s 5,6; art 7 s 20; 1984 c 463

　　art 7 s 9,10; 1985 c 279 s 1; 1Sp1985 c 12 art 7 s 14; 1986 c

　　444; 1987 c 258 s 6; 1987 c 398 art 7 s 21; 1989 c 222 s 9; 1989

　　c 246 s 2; 1989 c 329 art 5 s 3,4; 1990 c 375 s 3; 1990 c 562

　　art 7 s 4; art 8 s 23,24; 1991 c 130 s 37; 1992 c 499 art 12 s

　　29; 1993 c 224 art 5 s 2; 1Sp1995 c 3 art 16 s 13; 1996 c 412

　　art 13 s 13; 1998 c 397 art 6 s 69-77,124; 2000 c 489 art 5 s 3; 1Sp2003

　　c 9 art 4 s 3