House File 2356
HOUSE FILE
BY SCHICKEL
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to requirements and limitations on local
2 governments and on certain state agencies, including rates and
3 fees charged to cities and counties for use of the Iowa
4 communications network, bid requirements for construction of
5 certain public improvements, and city bonding authority.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 6134YH 80
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PAG LIN
1 1 Section 1. Section 8A.311, subsection 9, paragraph a, Code
1 2 Supplement 2003, is amended to read as follow:
1 3 a. 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 solicit bids on the proposed improvement
1 7 by publishing an advertisement in a print format. The
1 8 advertisement shall appear in two publications in a newspaper
1 9 published in the county in which the work is to be done. The
1 10 first advertisement for bids appearing in a newspaper shall be
1 11 not less than fifteen days prior to the date set for receiving
1 12 bids. The department may publish an advertisement in an
1 13 electronic format as an additional method of soliciting bids
1 14 under this paragraph.
1 15 Sec. 2. Section 8A.311, subsection 16, Code Supplement
1 16 2003, is amended to read as follows:
1 17 16. The department shall not award a contract to a bidder
1 18 for a construction, reconstruction, demolition, or repair
1 19 project or improvement with an estimated cost that exceeds
1 20 twenty=five one hundred thousand dollars in which the bid
1 21 requires the use of inmate labor supplied by the department of
1 22 corrections, but not employed by private industry pursuant to
1 23 section 904.809, to perform the project or improvement.
1 24 Sec. 3. Section 8D.3, subsection 3, paragraph i, Code
1 25 Supplement 2003, is amended to read as follows:
1 26 i. Evaluate existing and projected rates for use of the
1 27 system and ensure that rates are sufficient to pay for the
1 28 operation of the system excluding the cost of construction and
1 29 lease costs for Parts I, II, and III. The commission shall
1 30 establish all hourly rates to be charged to all authorized
1 31 users for the use of the network. A fee established by the
1 32 commission to be charged to a hospital licensed pursuant to
1 33 chapter 135B, a physician clinic, or the federal government
1 34 shall be at an appropriate rate so that, at a minimum, there
1 35 is no state subsidy related to the costs of the connection or
2 1 use of the network related to such user. The rates
2 2 established for use of the system if the user is a city or
2 3 county shall not exceed the rates established for equivalent
2 4 use of the system if the user is a state agency.
2 5 Sec. 4. Section 8D.11A, Code 2003, is amended to read as
2 6 follows:
2 7 8D.11A PROPRIETARY INTERESTS.
2 8 The commission may charge a negotiated fee, to recover a
2 9 share of the costs related to the research and development,
2 10 initial production, and derivative products of its proprietary
2 11 software and hardware, telecommunications architecture design,
2 12 and proprietary technology applications developed to support
2 13 authorized users, to private vendors and to other political
2 14 entities and subdivisions, including but not limited to
2 15 states, territories, protectorates, and foreign countries.
2 16 However, the fee negotiated with a user that is a city or
2 17 county shall not exceed the fee negotiated with a state agency
2 18 for recovery of a share of such costs. The commission may
2 19 enter into nondisclosure agreements to protect the state of
2 20 Iowa's proprietary interests. The provisions of chapter 23A
2 21 relating to noncompetition by state agencies and political
2 22 subdivisions with private enterprise shall not apply to
2 23 commission activities authorized under this section.
2 24 Sec. 5. Section 35A.10, subsection 2, Code Supplement
2 25 2003, is amended to read as follows:
2 26 2. The commandant and the commission shall have plans and
2 27 specifications prepared by the department of administrative
2 28 services for authorized construction, repair, or improvement
2 29 projects in excess of twenty=five one hundred thousand
2 30 dollars. An appropriation for a project shall not be expended
2 31 until the department of administrative services has adopted
2 32 plans and specifications and has completed a detailed estimate
2 33 of the cost of the project, prepared under the supervision of
2 34 a registered architect or registered professional engineer.
2 35 Sec. 6. Section 35A.10, subsection 3, Code Supplement
3 1 2003, is amended to read as follows:
3 2 3. The director of the department of administrative
3 3 services shall, in writing, let all contracts for authorized
3 4 improvements in excess of twenty=five one hundred thousand
3 5 dollars in accordance with chapter 8A, subchapter III. The
3 6 director of the department of administrative services shall
3 7 not authorize payment for construction purposes until
3 8 satisfactory proof has been furnished by the proper officer or
3 9 supervising architect that the parties have complied with the
3 10 contract.
3 11 Sec. 7. Section 73A.2, Code 2003, is amended to read as
3 12 follows:
3 13 73A.2 NOTICE OF HEARING.
3 14 Before any municipality shall enter into any contract for
3 15 any public improvement to cost twenty=five one hundred
3 16 thousand dollars or more, the governing body proposing to make
3 17 the contract shall adopt proposed plans and specifications and
3 18 proposed form of contract, fix a time and place for hearing at
3 19 the municipality affected or other nearby convenient place,
3 20 and give notice by publication in at least one newspaper of
3 21 general circulation in the municipality at least ten days
3 22 before the hearing.
3 23 Sec. 8. Section 73A.18, Code 2003, is amended to read as
3 24 follows:
3 25 73A.18 WHEN BIDS REQUIRED == ADVERTISEMENT == DEPOSIT.
3 26 When the estimated total cost of construction, erection,
3 27 demolition, alteration or repair of a public improvement
3 28 exceeds twenty=five one hundred thousand dollars, the
3 29 municipality shall advertise for bids on the proposed
3 30 improvement by two publications in a newspaper published in
3 31 the county in which the work is to be done. The first
3 32 advertisement for bids shall be not less than fifteen days
3 33 prior to the date set for receiving bids. The municipality
3 34 shall let the work to the lowest responsible bidder submitting
3 35 a sealed proposal. However, if in the judgment of the
4 1 municipality bids received are not acceptable, all bids may be
4 2 rejected and new bids requested. A bid shall be accompanied,
4 3 in a separate envelope, by a deposit of money or a certified
4 4 check or credit union certified share draft in an amount to be
4 5 named in the advertisement for bids as security that the
4 6 bidder will enter into a contract for the doing of the work.
4 7 The municipality shall fix the bid security in an amount equal
4 8 to at least five percent, but not more than ten percent of the
4 9 estimated total cost of the work. The checks, share drafts or
4 10 deposits of money of the unsuccessful bidders shall be
4 11 returned as soon as the successful bidder is determined, and
4 12 the check, share draft or deposit of money of the successful
4 13 bidder shall be returned upon execution of the contract
4 14 documents. This section does not apply to the construction,
4 15 erection, demolition, alteration or repair of a public
4 16 improvement when the contracting procedure for the doing of
4 17 the work is provided for in another provision of law.
4 18 Sec. 9. Section 161C.2, subsection 1, paragraph b, Code
4 19 2003, is amended to read as follows:
4 20 b. Any work project with an estimated cost of twenty=five
4 21 one hundred thousand dollars or more shall be undertaken as a
4 22 public contract as provided in chapters 73A and 573. The
4 23 local contracting organization shall designate a contracting
4 24 officer and shall establish procedures to manage the contract,
4 25 approve bills for payment, and review proposed change orders
4 26 or amendments to the contract.
4 27 Sec. 10. Section 262.34, unnumbered paragraph 1, Code
4 28 2003, is amended to read as follows:
4 29 When the estimated cost of construction, repairs, or
4 30 improvement of buildings or grounds under charge of the state
4 31 board of regents exceeds twenty=five one hundred thousand
4 32 dollars, the board shall advertise for bids for the
4 33 contemplated improvement or construction and shall let the
4 34 work to the lowest responsible bidder. However, if in the
4 35 judgment of the board bids received are not acceptable, the
5 1 board may reject all bids and proceed with the construction,
5 2 repair, or improvement by a method as the board may determine.
5 3 All plans and specifications for repairs or construction,
5 4 together with bids on the plans or specifications, shall be
5 5 filed by the board and be open for public inspection. All
5 6 bids submitted under this section shall be accompanied by a
5 7 deposit of money, a certified check or a credit union
5 8 certified share draft in an amount as the board may prescribe.
5 9 Sec. 11. Section 297.8, Code 2003, is amended to read as
5 10 follows:
5 11 297.8 EMERGENCY REPAIRS.
5 12 When emergency repairs costing more than twenty=five one
5 13 hundred thousand dollars are necessary in order to prevent the
5 14 closing of any school, the provisions of the law with
5 15 reference to advertising for bids shall not apply, and in that
5 16 event the board may contract for such emergency repairs
5 17 without advertising for bids. However, before such emergency
5 18 repairs can be made to any schoolhouse, it shall be necessary
5 19 to procure a certificate from the area education agency
5 20 administrator that such emergency repairs are necessary to
5 21 prevent the closing of the school.
5 22 Sec. 12. Section 330A.12, Code 2003, is amended to read as
5 23 follows:
5 24 330A.12 AWARD OF CONTRACT.
5 25 All contracts entered into by an authority for the
5 26 construction, reconstruction, and improvement of aviation
5 27 facilities shall be entered into pursuant to and shall comply
5 28 with chapter 73A. However, where an authority determines an
5 29 emergency exists, it may enter into contracts obligating the
5 30 authority for not in excess of twenty=five one hundred
5 31 thousand dollars per emergency without regard to the
5 32 requirements of chapter 73A and the authority may proceed with
5 33 the necessary action as expeditiously as possible to the
5 34 extent necessary to resolve such emergency.
5 35 Sec. 13. Section 331.341, subsection 1, Code 2003, is
6 1 amended to read as follows:
6 2 1. When the estimated cost of a public improvement, other
6 3 than improvements which may be paid for from the secondary
6 4 road fund, exceeds the amount specified in section 309.40 one
6 5 hundred thousand dollars, the board shall follow the contract
6 6 letting procedures provided for cities in sections 384.95 to
6 7 384.103. However, in following those sections the board shall
6 8 substitute the word "county" for the word "city", section
6 9 331.305 for section 362.3, shall consider "governing body" to
6 10 mean the board, and shall exclude references to a city
6 11 utility, utility board of trustees, or public utilities. As
6 12 used in this section, "public improvement" means the same as
6 13 defined in section 384.95 as modified by this subsection.
6 14 Sec. 14. Section 384.26, subsection 5, paragraph a,
6 15 subparagraphs (1) through (3), Code 2003, are amended to read
6 16 as follows:
6 17 (1) In cities having a population of five thousand or
6 18 less, in an amount of not more than four seven hundred
6 19 thousand dollars.
6 20 (2) In cities having a population of more than five
6 21 thousand and not more than seventy=five thousand, in an amount
6 22 of not more than seven hundred thousand one million dollars.
6 23 (3) In cities having a population in excess of seventy=
6 24 five thousand, in an amount of not more than one million five
6 25 hundred thousand dollars.
6 26 Sec. 15. Section 384.96, Code 2003, is amended to read as
6 27 follows:
6 28 384.96 SEALED BIDS.
6 29 When the estimated total cost to a city of a public
6 30 improvement exceeds the sum of twenty=five one hundred
6 31 thousand dollars, the governing body shall advertise for
6 32 sealed bids for the proposed improvement by publishing a
6 33 notice to bidders as provided in section 362.3, except that
6 34 the notice to bidders may be published more than twenty days
6 35 but not more than forty=five days before the date for filing
7 1 bids.
7 2 Sec. 16. Section 384.102, Code 2003, is amended to read as
7 3 follows:
7 4 384.102 WHEN HEARING NECESSARY.
7 5 When the estimated total cost of a public improvement
7 6 exceeds the sum of twenty=five one hundred thousand dollars,
7 7 the governing body shall not enter into a contract for the
7 8 improvement until it has held a public hearing on the proposed
7 9 plans, specifications, and form of contract, and estimated
7 10 cost for the improvement. Notice of the hearing must be
7 11 published as provided in section 362.3. At the hearing any
7 12 interested person may appear and file objections to the
7 13 proposed plans, specifications, contract, or estimated cost of
7 14 the improvement. After hearing objections, the governing body
7 15 shall by resolution enter its decision on the plans,
7 16 specifications, contract, and estimated cost.
7 17 Sec. 17. Section 904.314, unnumbered paragraph 1, Code
7 18 Supplement 2003, is amended to read as follows:
7 19 The director shall cause plans and specifications to be
7 20 prepared by the department of administrative services for all
7 21 improvements authorized and costing over twenty=five one
7 22 hundred thousand dollars. An appropriation for any
7 23 improvement costing over twenty=five one hundred thousand
7 24 dollars shall not be expended until the adoption of suitable
7 25 plans and specifications, prepared by a competent architect
7 26 and accompanied by a detailed statement of the amount,
7 27 quality, and description of all material and labor required
7 28 for the completion of the improvement.
7 29 Sec. 18. Section 904.315, Code Supplement 2003, is amended
7 30 to read as follows:
7 31 904.315 CONTRACTS FOR IMPROVEMENTS.
7 32 The director of the department of administrative services
7 33 shall, in writing, let all contracts for authorized
7 34 improvements costing in excess of twenty=five one hundred
7 35 thousand dollars under chapter 8A, subchapter III. Upon prior
8 1 authorization by the director, improvements costing five
8 2 thousand dollars or less may be made by the superintendent of
8 3 any institution.
8 4 A contract is not required for improvements at a state
8 5 institution where the labor of inmates is to be used if the
8 6 contract is not for a construction, reconstruction,
8 7 demolition, or repair project or improvement with an estimated
8 8 cost in excess of twenty=five one hundred thousand dollars.
8 9 EXPLANATION
8 10 This bill makes changes to the Code relating to
8 11 requirements and limitations on local governments and on
8 12 certain state agencies.
8 13 The bill changes the threshold requirement for advertising
8 14 for bids for a contract for the construction of a public
8 15 improvement from an estimated cost of $25,000 to an estimated
8 16 cost of $100,000. This increase in the threshold applies to
8 17 contracts entered into by the state department of
8 18 administrative services; the veterans affairs commission;
8 19 municipalities including townships, school corporations; the
8 20 state fair board; the state board of regents; soil and water
8 21 conservation districts; aviation authorities; counties;
8 22 cities; and the state department of corrections.
8 23 The bill provides that rates established for use of the
8 24 Iowa communications network by a city or a county and
8 25 proprietary fees charged to users of the network that are a
8 26 city or a county cannot exceed the rates or fees charged to a
8 27 state agency.
8 28 The bill increases the amount of a bond issuance by a city
8 29 that does not require a referendum unless a petition is filed
8 30 calling for an election. For cities having a population of
8 31 5,000 or less, the amount is increased from $400,000 to
8 32 $700,000; for cities having a population of more than 5,000
8 33 but not more than 75,000, the amount is increased from
8 34 $700,000 to $1 million; and for cities having a population
8 35 over 75,000, the amount is increased from $1 million to $1.5
9 1 million.
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