Text: HF02081 Text: HF02083 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 331.341, subsection 1, Code 1997, is 1 2 amended to read as follows: 1 3 1. When the estimated cost of a public improvement or 1 4 contractual service, other than improvements which may be paid 1 5 for from the secondary road fund, exceeds the amount specified 1 6 in section 309.40, the board shall follow the contract letting 1 7 procedures provided for cities in sections 384.95 to 384.103. 1 8 However, in following those sections the board shall 1 9 substitute the word "county" for the word "city", section 1 10 331.305 for section 362.3, shall consider "governing body" to 1 11 mean the board, and shall exclude references to a city 1 12 utility, utility board of trustees, or public utilities. As 1 13 used in this section, "public improvement"meansand 1 14 "contractual service" mean the same as defined in section 1 15 384.95 as modified by this subsection. 1 16 Sec. 2. Section 331.342, subsection 9, Code 1997, is 1 17 amended to read as follows: 1 18 9. A contract made by competitive bid, publicly invited 1 19 and opened, in which a member of a county board, commission, 1 20 or administrative agency has an interest, if the member is not 1 21 authorized by law to participate in the awarding of the 1 22 contract. The competitive bid qualification of this 1 23 subsection does not apply to a contract for professional 1 24 services notcustomarilyrequired to be awarded by competitive 1 25 bid. 1 26 Sec. 3. Section 331.471, subsection 9, Code 1997, is 1 27 amended to read as follows: 1 28 9. A commission is subject to section 331.341, subsections 1 29 1, 2, 4 and 5, and section 331.342, in contracting for public 1 30 improvements and is subject to section 331.341, subsection 1, 1 31 and section 331.342, in contracting for contractual services 1 32 as defined in section 384.95. 1 33 Sec. 4. Section 384.95, Code 1997, is amended by adding 1 34 the following new subsection: 1 35 NEW SUBSECTION. 3. "Contractual service" means all acts 2 1 or services rendered, furnished, or performed for a city on 2 2 behalf of citizens of the city and at the direction of the 2 3 city council, either on its own motion or as directed by 2 4 statute, and to be paid for in whole or in part by the use of 2 5 funds of the city, regardless of sources, including services 2 6 provided jointly with any other public or private agency. 2 7 Sec. 5. Section 384.96, Code 1997, is amended to read as 2 8 follows: 2 9 384.96 SEALED BIDS. 2 10 When the estimated total cost to a city of a public 2 11 improvement or the estimated total cost to a city of a 2 12 contractual service exceeds the sum of twenty-five thousand 2 13 dollars, the governing body shall advertise for sealed bids 2 14 for the proposed improvement or contractual service by 2 15 publishing a notice to bidders as provided in section 362.3, 2 16 except that the notice to bidders may be published more than 2 17 twenty days but not more than forty-five days before the date 2 18 for filing bids. 2 19 Sec. 6. Section 384.97, Code 1997, is amended to read as 2 20 follows: 2 21 384.97 NOTICE TO BIDDERS. 2 22 The notice to bidders must state the following items: 2 23 1. The time and place for filing sealed proposals. 2 24 2. The time and place sealed proposals will be opened and 2 25 considered on behalf of the governing body. 2 26 3. The general nature of the public improvement or 2 27 contractual service on which bids are requested. 2 28 4. In general terms when the work must be commenced and 2 29 when it must be completed or, in the case of a contractual 2 30 service, the duration of the contract. 2 31 5. That each bidder shall accompany the bid with a bid 2 32 security as defined in this subsection and as specified by the 2 33 governing body, as security that the successful bidder will 2 34 enter into a contract for the work bid upon and will furnish 2 35 after the award of contract a corporate surety bond, 3 1 acceptable to the governing body, for the faithful performance 3 2 of the contract, in an amount equal to one hundred percent of 3 3 the amount of the contract. However, a bidder awarded a 3 4 contract for a contractual service shall not be required to 3 5 furnish a corporate surety bond. The bidder's security shall 3 6 be in an amount fixed by the governing body, and shall be in 3 7 the form of a cashier's or certified check drawn on a bank in 3 8 Iowa or a bank chartered under the laws of the United States, 3 9 or a certified share draft drawn on a credit union in Iowa or 3 10 chartered under the law of the United States, or the governing 3 11 body may provide for a bidder's bond with corporate surety 3 12 satisfactory to the governing body. The bid bond shall 3 13 contain no condition except as provided in this section. 3 14 6. Any further information which the governing body deems 3 15 pertinent. 3 16TheIn the case of a public improvement, the notice to 3 17 bidders may provide that bids will be received for the 3 18 furnishing of all labor and materials and furnishing or 3 19 installing equipment under one contract, or for parts thereof 3 20 in separate sections. 3 21 On public improvements to be financed wholly or partially 3 22 by special assessments against benefited property, the 3 23 governing body, in the notice to bidders, may request 3 24 aggregate bids for all projects included in any resolution of 3 25 necessity, notwithstanding variations in the sizes of the 3 26 improvements and notwithstanding that some parts of the 3 27 improvements are assessable and some nonassessable, and may 3 28 award the contract to the lowest responsible bidder submitting 3 29 the lowest aggregate bid. 3 30 Sec. 7. Section 384.98, Code 1997, is amended to read as 3 31 follows: 3 32 384.98 BID SECURITY. 3 33 The amount of bid security must be fixed by the governing 3 34 body prior to ordering publication of the notice to bidders 3 35 and must equal at least five percent, but may not exceed ten 4 1 percent of either the estimated total contract cost of the 4 2 public improvement or contractual service, or the amount of 4 3 each bid. 4 4 Sec. 8. Section 384.99, Code 1997, is amended to read as 4 5 follows: 4 6 384.99 AWARD OF CONTRACT. 4 7 The contract for the public improvement or contractual 4 8 service must be awarded to the lowest responsible bidder, 4 9 provided, however, that contracts relating to public utilities 4 10 or extensions or improvements thereof, as described in 4 11 division V of this chapter, may be awarded by the governing 4 12 body as it deems to be in the best interests of the city. 4 13 Sec. 9. Section 384.100, unnumbered paragraph 1, Code 4 14 1997, is amended to read as follows: 4 15 The governing body shall open, announce the amount of the 4 16 bids, and file all proposals received, at the time and place 4 17 specified in the notice to bidders. The governing body may, 4 18 by resolution, award the contract for the public improvement 4 19 or contractual service to the bidder submitting the best bid, 4 20 determined as provided in section 384.99, or it may reject all 4 21 bids received, fix a new date for receiving bids, and order 4 22 publication of a new notice to bidders. The bid security 4 23 furnished by the successful bidder must be retained by the 4 24 governing body until the approved contract form has been 4 25 executed, and, in the case of a public improvement, a bond is 4 26 filed by the bidder guaranteeing the performance of the 4 27 contract, and the contract and bond, have been approved by the 4 28 governing body. The provisions of chapter 573, where 4 29 applicable, apply to contracts awarded under this division. 4 30 Sec. 10. Section 384.101, Code 1997, is amended to read as 4 31 follows: 4 32 384.101 DELEGATION OF AUTHORITY. 4 33 When bids or proposals are required to be taken in 4 34 connection with any public improvement or contractual service, 4 35 the governing body may delegate, by ordinance or resolution, 5 1 to the city manager, clerk, engineer, or other public officer, 5 2 the duty of receiving and opening bids and announcing the 5 3 results. The officer shall report the results of the bidding 5 4 with the officer's recommendations thereon to the governing 5 5 body at its next meeting. 5 6 Sec. 11. Section 384.102, Code 1997, is amended to read as 5 7 follows: 5 8 384.102 WHEN HEARING NECESSARY. 5 9 When the estimated total cost of a public improvement or 5 10 contractual service exceeds the sum of twenty-five thousand 5 11 dollars, the governing body shall not enter into a contract 5 12 for the improvement or service until it has held a public 5 13 hearing on the proposed plans, specifications, and form of 5 14 contract, and estimated cost for the improvement or service. 5 15 Notice of the hearing must be published as provided in section 5 16 362.3. At the hearing any interested person may appear and 5 17 file objections to the proposed plans, specifications, 5 18 contract, or estimated cost of the improvement or service. 5 19 After hearing objections, the governing body shall by 5 20 resolution enter its decision on the plans, specifications, 5 21 contract, and estimated cost. 5 22 EXPLANATION 5 23 This bill requires that city and county contracts for 5 24 services are subject to the same public bidding requirements 5 25 as contracts for public improvements. Current law provides 5 26 that, for cities, contracts for public improvements exceeding 5 27 $25,000 must be let through a public bidding process. For 5 28 counties, the public bidding requirement applies to contracts 5 29 for public improvements exceeding $50,000. The bill provides 5 30 that these same limits will apply to contracts for services. 5 31 Under the public bidding requirements a city or county is 5 32 required to advertise for bids and give notice to bidders by 5 33 publication between 20 and 45 days before the date for filing 5 34 bids. A bond paid as bid security is required of both bidders 5 35 for a public improvement and those for a contractual service. 6 1 However, only those bidders awarded contracts for public 6 2 improvements are required to pay a corporate surety bond after 6 3 the contract is awarded to ensure faithful performance of the 6 4 contract. With limited exceptions, the governing body of a 6 5 city or county is required to award the contract to the lowest 6 6 responsible bidder. A city or county must hold a public 6 7 hearing before a public improvement or service contract is 6 8 awarded if the cost of the contract will exceed $25,000. 6 9 This bill may impose a state mandate under Code chapter 6 10 25B. 6 11 LSB 3091YH 77 6 12 sc/sc/14
Text: HF02081 Text: HF02083 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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