Text: HSB00631                          Text: HSB00633
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 632

Bill Text

PAG LIN
  1  1    Section 1.  Section 18.6, subsection 9, Code 1997, is
  1  2 amended to read as follows:
  1  3    9.  When the estimated total cost of construction,
  1  4 erection, demolition, alteration or repair of a public
  1  5 improvement exceeds twenty-five one hundred thousand dollars,
  1  6 the department shall advertise for bids on the proposed
  1  7 improvement by two publications in a newspaper published in
  1  8 the county in which the work is to be done.  The first
  1  9 advertisement for bids shall be not less than fifteen days
  1 10 prior to the date set for receiving bids.  The department
  1 11 shall let the work to the lowest responsible bidder submitting
  1 12 a sealed proposal.  However, if the department considers the
  1 13 bids received not to be acceptable, all bids may be rejected
  1 14 and new bids requested.  A bid shall be accompanied, in a
  1 15 separate envelope, by a deposit of money or a certified check
  1 16 or credit union certified share draft in an amount to be named
  1 17 in the advertisement for bids as security that the bidder will
  1 18 enter into a contract for the doing of the work.  The
  1 19 department shall fix the bid security in an amount equal to at
  1 20 least five percent, but not more than ten percent of the
  1 21 estimated total cost of the work.  The checks, share drafts or
  1 22 deposits of money of the unsuccessful bidders shall be
  1 23 returned as soon as the successful bidder is determined, and
  1 24 the check, share draft or deposit of money of the successful
  1 25 bidder shall be returned upon execution of the contract
  1 26 documents.  This section does not apply to the construction,
  1 27 erection, demolition, alteration or repair of a public
  1 28 improvement when the contracting procedure for the doing of
  1 29 the work is provided for in another provision of law.
  1 30    Sec. 2.  Section 35A.10, subsection 2, Code 1997, is
  1 31 amended to read as follows:
  1 32    2.  The commandant and the commission shall have plans and
  1 33 specifications prepared by the department of general services
  1 34 for authorized construction, repair, or improvement projects
  1 35 in excess of twenty-five one hundred thousand dollars.  An
  2  1 appropriation for a project shall not be expended until the
  2  2 department of general services has adopted plans and
  2  3 specifications and has completed a detailed estimate of the
  2  4 cost of the project, prepared under the supervision of a
  2  5 registered architect or registered professional engineer.
  2  6    Sec. 3.  Section 35A.10, subsection 3, Code 1997, is
  2  7 amended to read as follows:
  2  8    3.  The director of the department of general services
  2  9 shall, in writing, let all contracts for authorized
  2 10 improvements in excess of twenty-five one hundred thousand
  2 11 dollars in accordance with chapter 18.  The director of the
  2 12 department of general services shall not authorize payment for
  2 13 construction purposes until satisfactory proof has been
  2 14 furnished by the proper officer or supervising architect that
  2 15 the parties have complied with the contract.
  2 16    Sec. 4.  Section 73A.2, Code 1997, is amended to read as
  2 17 follows:
  2 18    73A.2  NOTICE OF HEARING.
  2 19    Before any municipality shall enter into any contract for
  2 20 any public improvement to cost twenty-five one hundred
  2 21 thousand dollars or more, the governing body proposing to make
  2 22 the contract shall adopt proposed plans and specifications and
  2 23 proposed form of contract, fix a time and place for hearing at
  2 24 the municipality affected or other nearby convenient place,
  2 25 and give notice by publication in at least one newspaper of
  2 26 general circulation in the municipality at least ten days
  2 27 before the hearing.
  2 28    Sec. 5.  Section 73A.18, Code 1997, is amended to read as
  2 29 follows:
  2 30    73A.18  WHEN BIDS REQUIRED – ADVERTISEMENT – DEPOSIT.
  2 31    When the estimated total cost of construction, erection,
  2 32 demolition, alteration or repair of a public improvement
  2 33 exceeds twenty-five one hundred thousand dollars, the
  2 34 municipality shall advertise for bids on the proposed
  2 35 improvement by two publications in a newspaper published in
  3  1 the county in which the work is to be done.  The first
  3  2 advertisement for bids shall be not less than fifteen days
  3  3 prior to the date set for receiving bids.  The municipality
  3  4 shall let the work to the lowest responsible bidder submitting
  3  5 a sealed proposal.  However, if in the judgment of the
  3  6 municipality bids received are not acceptable, all bids may be
  3  7 rejected and new bids requested.  A bid shall be accompanied,
  3  8 in a separate envelope, by a deposit of money or a certified
  3  9 check or credit union certified share draft in an amount to be
  3 10 named in the advertisement for bids as security that the
  3 11 bidder will enter into a contract for the doing of the work.
  3 12 The municipality shall fix the bid security in an amount equal
  3 13 to at least five percent, but not more than ten percent of the
  3 14 estimated total cost of the work.  The checks, share drafts or
  3 15 deposits of money of the unsuccessful bidders shall be
  3 16 returned as soon as the successful bidder is determined, and
  3 17 the check, share draft or deposit of money of the successful
  3 18 bidder shall be returned upon execution of the contract
  3 19 documents.  This section  does not apply to the construction,
  3 20 erection, demolition, alteration or repair of a public
  3 21 improvement when the contracting procedure for the doing of
  3 22 the work is provided for in another provision of law.
  3 23    Sec. 6.  Section 218.58, subsection 2, Code 1997, is
  3 24 amended to read as follows:
  3 25    2.  The director shall have plans and specifications
  3 26 prepared by the department of general services for authorized
  3 27 construction, repair, or improvement projects costing over
  3 28 twenty-five one hundred thousand dollars.  An appropriation
  3 29 for a project shall not be expended until the department of
  3 30 general services has adopted plans and specifications and has
  3 31 completed a detailed estimate of the cost of the project,
  3 32 prepared under the supervision of a registered architect or
  3 33 registered professional engineer.  Plans and specifications
  3 34 shall not be adopted and a project shall not proceed if the
  3 35 project would require an expenditure of money in excess of the
  4  1 appropriation.
  4  2    Sec. 7.  Section 218.58, subsection 4, Code 1997, is
  4  3 amended to read as follows:
  4  4    4.  If the director of the department of human services and
  4  5 the director of the department of general services determine
  4  6 that emergency repairs or improvements estimated to cost more
  4  7 than twenty-five one hundred thousand dollars are necessary to
  4  8 assure the continued operation of a departmental institution,
  4  9 the requirements of subsections 2 and 3 for preparation of
  4 10 plans and specifications and competitive procurement
  4 11 procedures are waived.  A determination of necessity for
  4 12 waiver by the director of the department of human services and
  4 13 the director of the department of general services shall be in
  4 14 writing and shall be entered in the project record for
  4 15 emergency repairs or improvements.  Emergency repairs or
  4 16 improvements shall be accomplished using plans and
  4 17 specifications and competitive procurement procedures to the
  4 18 greatest extent possible, considering the necessity for rapid
  4 19 completion of the project.  A waiver of the requirements of
  4 20 subsections 2 and 3 does not authorize an expenditure in
  4 21 excess of an amount otherwise authorized for the repair or
  4 22 improvement.
  4 23    Sec. 8.  Section 262.34, unnumbered paragraph 1, Code 1997,
  4 24 is amended to read as follows:
  4 25    When the estimated cost of construction, repairs, or
  4 26 improvement of buildings or grounds under charge of the state
  4 27 board of regents exceeds twenty-five one hundred thousand
  4 28 dollars, the board shall advertise for bids for the
  4 29 contemplated improvement or construction and shall let the
  4 30 work to the lowest responsible bidder.  However, if in the
  4 31 judgment of the board bids received are not acceptable, the
  4 32 board may reject all bids and proceed with the construction,
  4 33 repair, or improvement by a method as the board may determine.
  4 34 All plans and specifications for repairs or construction,
  4 35 together with bids on the plans or specifications, shall be
  5  1 filed by the board and be open for public inspection.  All
  5  2 bids submitted under this section shall be accompanied by a
  5  3 deposit of money, a certified check or a credit union
  5  4 certified share draft in an amount as the board may prescribe.
  5  5    Sec. 9.  Section 297.7, subsection 1, Code 1997, is amended
  5  6 to read as follows:
  5  7    1.  Sections 73A.2 and 73A.18 are applicable to the
  5  8 construction and repair of school buildings.  Before
  5  9 construction of a school building for which the cost of
  5 10 construction exceeds twenty-five one hundred thousand dollars,
  5 11 the board of directors of a school district shall send a copy
  5 12 of the plans to the building consultant in the department of
  5 13 education for review.  The board of directors may submit for
  5 14 review a copy of the plans for repair or renovation of a
  5 15 school building.  The building consultant shall return the
  5 16 plans together with any recommendations to the board of
  5 17 directors within thirty days following the receipt of the
  5 18 plans.
  5 19    Sec. 10.  Section 297.8, Code 1997, is amended to read as
  5 20 follows:
  5 21    297.8  EMERGENCY REPAIRS.
  5 22    When emergency repairs costing more than twenty-five one
  5 23 hundred thousand dollars are necessary in order to prevent the
  5 24 closing of any school, the provisions of the law with
  5 25 reference to advertising for bids shall not apply, and in that
  5 26 event the board may contract for such emergency repairs
  5 27 without advertising for bids.  However, before such emergency
  5 28 repairs can be made to any schoolhouse, it shall be necessary
  5 29 to procure a certificate from the area education agency
  5 30 administrator that such emergency repairs are necessary to
  5 31 prevent the closing of the school.
  5 32    Sec. 11.  Section 330A.12, Code 1997, is amended to read as
  5 33 follows:
  5 34    330A.12  AWARD OF CONTRACT.
  5 35    All contracts entered into by an authority for the
  6  1 construction, reconstruction, and improvement of aviation
  6  2 facilities shall be entered into pursuant to and shall comply
  6  3 with chapter 73A.  However, where an authority determines an
  6  4 emergency exists, it may enter into contracts obligating the
  6  5 authority for not in excess of twenty-five one hundred
  6  6 thousand dollars per emergency without regard to the
  6  7 requirements of chapter 73A and the authority may proceed with
  6  8 the necessary action as expeditiously as possible to the
  6  9 extent necessary to resolve such emergency.
  6 10    Sec. 12.  Section 380.4, unnumbered paragraph 1, Code
  6 11 Supplement 1997, is amended to read as follows:
  6 12    Passage of an ordinance, amendment, or resolution requires
  6 13 a majority vote of all of the members of the council, except
  6 14 when the mayor may vote to break a tie vote in a city with an
  6 15 even number of council members, as provided in section 372.4.
  6 16 Passage of a motion requires a majority vote of a quorum of
  6 17 the council.  A resolution must be passed to spend public
  6 18 funds in excess of twenty-five one hundred thousand dollars on
  6 19 any one project, or to accept public improvements and
  6 20 facilities upon their completion.  Each council member's vote
  6 21 on a measure must be recorded.  A measure which fails to
  6 22 receive sufficient votes for passage shall be considered
  6 23 defeated.
  6 24    Sec. 13.  Section 384.96, Code 1997, is amended to read as
  6 25 follows:
  6 26    384.96  SEALED BIDS.
  6 27    When the estimated total cost to a city of a public
  6 28 improvement exceeds the sum of twenty-five one hundred
  6 29 thousand dollars, the governing body shall advertise for
  6 30 sealed bids for the proposed improvement by publishing a
  6 31 notice to bidders as provided in section 362.3, except that
  6 32 the notice to bidders may be published more than twenty days
  6 33 but not more than forty-five days before the date for filing
  6 34 bids.
  6 35    Sec. 14.  Section 384.102, Code 1997, is amended to read as
  7  1 follows:
  7  2    384.102  WHEN HEARING NECESSARY.
  7  3    When the estimated total cost of a public improvement
  7  4 exceeds the sum of twenty-five one hundred thousand dollars,
  7  5 the governing body shall not enter into a contract for the
  7  6 improvement until it has held a public hearing on the proposed
  7  7 plans, specifications, and form of contract, and estimated
  7  8 cost for the improvement.  Notice of the hearing must be
  7  9 published as provided in section 362.3.  At the hearing any
  7 10 interested person may appear and file objections to the
  7 11 proposed plans, specifications, contract, or estimated cost of
  7 12 the improvement.  After hearing objections, the governing body
  7 13 shall by resolution enter its decision on the plans,
  7 14 specifications, contract, and estimated cost.
  7 15    Sec. 15.  Section 573.2, unnumbered paragraph 1, Code 1997,
  7 16 is amended to read as follows:
  7 17    Contracts for the construction of a public improvement
  7 18 shall, when the contract price equals or exceeds twenty-five
  7 19 one hundred thousand dollars, be accompanied by a bond, with
  7 20 surety, conditioned for the faithful performance of the
  7 21 contract, and for the fulfillment of other requirements as
  7 22 provided by law.  The bond may also be required when the
  7 23 contract price does not equal that amount.  However, if a
  7 24 contractor provides a performance or maintenance bond as
  7 25 required by a public improvement contract governed by this
  7 26 chapter and subsequently the surety company becomes insolvent
  7 27 and the contractor is required to purchase a new bond, the
  7 28 contractor may apply for reimbursement from the governmental
  7 29 agency that required a second bond and the claims shall be
  7 30 reimbursed from funds allocated for road construction
  7 31 purposes.
  7 32    Sec. 16.  Section 904.314, Code 1997, is amended to read as
  7 33 follows:
  7 34    904.314  PLANS AND SPECIFICATIONS FOR IMPROVEMENTS.
  7 35    The director shall cause plans and specifications to be
  8  1 prepared by the department of general services for all
  8  2 improvements authorized and costing over twenty-five one
  8  3 hundred thousand dollars.  An appropriation for any
  8  4 improvement costing over twenty-five one hundred thousand
  8  5 dollars shall not be expended until the adoption of suitable
  8  6 plans and specifications, prepared by a competent architect
  8  7 and accompanied by a detailed statement of the amount,
  8  8 quality, and description of all material and labor required
  8  9 for the completion of the improvement.
  8 10    A plan shall not be adopted, and an improvement shall not
  8 11 be constructed, which contemplates an expenditure of money in
  8 12 excess of the appropriation.
  8 13    Sec. 17.  Section 904.315, unnumbered paragraph 1, Code
  8 14 1997, is amended to read as follows:
  8 15    The director of the department of general services shall,
  8 16 in writing, let all contracts for authorized improvements
  8 17 costing in excess of twenty-five one hundred thousand dollars
  8 18 under chapter 18.  Upon prior authorization by the director,
  8 19 improvements costing five thousand dollars or less may be made
  8 20 by the superintendent of any institution.  
  8 21                           EXPLANATION
  8 22    This bill raises the monetary threshold amount for several
  8 23 procurement requirements applicable to certain public entities
  8 24 for public improvements from $25,000 to $100,000.
  8 25    The increased threshold applies to certain competitive
  8 26 bidding requirements and contracting letting procedures
  8 27 applicable to the department of general services, the
  8 28 commission of veterans affairs, the department of human
  8 29 services, the state board of regents, the department of
  8 30 corrections, municipalities, cities, aviation authorities, and
  8 31 local school boards for the construction, erection,
  8 32 demolition, alteration, or repair of a public improvement.  
  8 33 LSB 3213DP 77
  8 34 ec/sc/14
     

Text: HSB00631                          Text: HSB00633
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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