H.F. 460 DIVISION I 1 MERGER 2 Section 1. NEW SECTION . 468.262 Purpose. 3 One or more drainage or levee districts may merge with 4 another levee or drainage district as provided in this part in 5 such a manner that the surviving drainage or levee district 6 continues to exist and absorbs each old drainage or levee 7 district which dissolves. 8 Sec. 2. NEW SECTION . 468.263 Requirements. 9 1. In order for a merger to occur, all of the following must 10 apply: 11 a. Immediately prior to the merger, all of the following 12 conditions must be satisfied: 13 (1) One boundary of the proposed old drainage or levee 14 district must completely adjoin all or part of the boundary of 15 the proposed surviving drainage or levee district. 16 (2) The drainage or levee district includes a number of 17 levees that are operating separately in a manner that does not 18 benefit the territory served by the multiple districts. 19 b. Each board considering the proposed merger must determine 20 all of the following: 21 (1) The merger will benefit the owners of the land of the 22 board’s district. 23 (2) It is in the best interests of all landowners in all 24 proposed old drainage or levee districts and the proposed 25 surviving district to establish a system of levees managed as 26 part of a system. 27 2. A merger may occur notwithstanding that a drainage or 28 levee district is not otherwise eligible for dissolution as 29 provided in part 6. 30 Sec. 3. NEW SECTION . 468.264 Hearing. 31 The boards of one or more proposed old drainage or levee 32 districts and the board of a proposed surviving drainage or 33 levee district may, upon respective motions, enter an order to 34 conduct one or more hearings regarding a proposed merger. If 35 -1- LSB 1111YH (4) 85 da/sc 1/ 11

H.F. 460 the board of at least one proposed old district or the board of 1 the proposed surviving district orders a hearing, all of the 2 following applies: 3 1. A hearing shall be conducted within forty days after 4 the date the order to conduct the hearing is entered by that 5 district’s board. 6 2. The proposed surviving drainage or levee district shall 7 immediately provide notice of each hearing. The notice may be 8 provided by any of the following: 9 a. Personal delivery to the same persons and in the same 10 manner as provided in section 468.257, subsection 2. 11 b. Publication once each week for two consecutive weeks in 12 a newspaper published in each county where the proposed old and 13 surviving drainage or levee districts are located. The notice 14 must at a minimum describe the purpose of the hearing and the 15 time and date of the hearing. 16 3. a. The boards of one or more proposed old drainage or 17 levee districts and the board of a proposed surviving drainage 18 or levee district may conduct the hearings jointly. 19 b. Nothing in this section prevents a proposed old or a 20 proposed surviving drainage and levee district board from 21 convening and conducting a hearing in a manner consistent with 22 section 468.258. 23 4. The boards of the proposed old district and the proposed 24 surviving district may vote on the question to merge. However, 25 the vote must be within forty-five days of the last hearing. 26 5. Upon the affirmative vote by the board of at least one 27 proposed old district and the board of the proposed surviving 28 district, the boards shall meet jointly to vote for the 29 adoption of a merger resolution. The resolution shall be 30 deemed disapproved unless the boards, meeting jointly, vote to 31 approve the resolution within forty-five days after the last 32 district voted to approve the merger. Any costs associated 33 with conducting a joint meeting shall be borne by the district 34 proposed to be the surviving district, regardless of the 35 -2- LSB 1111YH (4) 85 da/sc 2/ 11

H.F. 460 outcome of the vote. 1 Sec. 4. NEW SECTION . 468.265 Joint order for merger. 2 A merger approved by the board of at least one old drainage 3 or levee district and the board of a surviving drainage or 4 levee district as provided in this section shall be effectuated 5 according to the terms and conditions of a joint order for 6 merger entered by those boards. 7 1. The joint order shall be filed with the county auditor of 8 the county in which the surviving drainage or levee district 9 is located and noted on the drainage record in the same manner 10 as provided in section 468.258. 11 2. Upon the filing of the joint order with the county 12 auditor as provided in subsection 1, all of the following 13 applies: 14 a. The title to all real estate, other property, 15 improvement, and any right-of-way held by an old drainage or 16 levee district is vested in the surviving drainage or levee 17 district, subject to any condition which applied immediately 18 prior to the merger. 19 b. The surviving drainage or levee district assumes all 20 existing obligations of an old drainage or levee district. 21 c. A proceeding pending against an old drainage or levee 22 district may be continued as if the merger did not occur or the 23 surviving drainage or levee district may be substituted in the 24 proceeding for the old drainage or levee district. 25 d. The merger does not affect a classification of land or 26 the levy of assessments. 27 e. The original cost and the subsequent cost of improvements 28 in the old drainage or levee district shall be added to and 29 become a part of the original cost and the subsequent cost of 30 improvements in the surviving district. 31 3. The surviving drainage or levee district shall pay any 32 remaining costs associated with the merger. 33 Sec. 5. DIRECTIONS TO CODE EDITOR. The Code editor shall 34 codify the provisions of this Act as chapter 468, subchapter 35 -3- LSB 1111YH (4) 85 da/sc 3/ 11

H.F. 460 I, part 7. 1 DIVISION II 2 BIDDING PROCEDURES 3 Sec. 6. Section 468.34, Code 2013, is amended by striking 4 the section and inserting in lieu thereof the following: 5 468.34 Bidding procedures —— Iowa Construction Bidding 6 Procedures Act. 7 When ordering the construction of an improvement under 8 this part, the board and any bidders shall comply with the 9 competitive bid requirements applicable to a governmental 10 entity ordering the construction of a public improvement in 11 chapter 26. 12 Sec. 7. Section 468.66, Code 2013, is amended to read as 13 follows: 14 468.66 Bids required. 15 In case the board shall finally determine determines that 16 any such changes as defined a change described in section 17 468.62 shall be made involving an expenditure of twenty 18 thousand dollars or more increases the cost of the improvement 19 to more than the competitive bid threshold as provided in 20 section 26.3 , the work shall be let by bids in the same 21 manner as is provided for the original construction of such 22 improvements board and any bidders shall comply with the 23 competitive bid requirements applicable to a governing entity 24 ordering the construction of a public improvement in chapter 25 26 . 26 Sec. 8. Section 468.126, subsection 1, paragraph c, Code 27 2013, is amended by striking the paragraph and inserting in 28 lieu thereof the following: 29 c. When ordering a repair under this section, the board and 30 any bidders shall comply with the competitive bid requirements 31 applicable to a governing entity ordering the construction of a 32 public improvement in chapter 26. 33 Sec. 9. Section 468.126, subsection 2, Code 2013, is amended 34 to read as follows: 35 -4- LSB 1111YH (4) 85 da/sc 4/ 11

H.F. 460 2. In the case of minor repairs not in excess of the 1 competitive bid threshold as provided in section 26.3 , or in 2 the eradication of brush and weeds along the open ditches , not 3 in excess of twenty thousand dollars , where the board finds 4 that a saving to the district will result, the board may cause 5 the repairs or eradication to be done by secondary road fund 6 equipment, or weed fund equipment, and labor of the county and 7 then reimburse the secondary road fund or the weed fund from 8 the fund of the drainage district thus benefited. 9 Sec. 10. Section 468.126, subsection 4, Code 2013, is 10 amended to read as follows: 11 4. For the purpose of this subsection , an “improvement” in 12 a drainage or levee district in which any ditch, tile drain or 13 other facility has previously been constructed is a project 14 intended to expand, enlarge , or otherwise increase the capacity 15 of any existing ditch, drain , or other facility above that for 16 which it was designed. 17 a. When the board determines that improvements are an 18 improvement is necessary or desirable, the board shall appoint 19 an engineer to make surveys as seem appropriate to determine 20 the nature and extent of the needed improvements improvement , 21 and to file a report showing what improvements are improvement 22 is recommended and their its estimated costs cost , which report 23 may be amended before final action. If the estimated cost of 24 the improvements does not exceed twenty thousand dollars, or 25 twenty-five percent of the original cost of the district and 26 subsequent improvements, whichever is the greater amount, the 27 board may order the work done without notice. The board shall 28 not divide proposed improvements into separate programs in 29 order to avoid the limitation for making improvements without 30 notice compliance with paragraph “b” . If the board deems 31 it desirable to make improvements where the estimated cost 32 exceeds the twenty thousand dollar or twenty-five percent 33 limit, the board shall set a date for a hearing on the matter 34 of constructing the proposed improvements and also on the 35 -5- LSB 1111YH (4) 85 da/sc 5/ 11

H.F. 460 matter of whether there shall be a reclassification of benefits 1 for the cost of the proposed improvements and shall give 2 notice as provided in sections 468.14 through 468.18 . At the 3 hearing, the board shall hear objections to the feasibility 4 of the proposed improvements and arguments for or against 5 a reclassification presented by or for any taxpayer of the 6 district. Following the a hearing , if required by section 7 26.12 , the board shall order that the improvements it deems 8 desirable and feasible be made and shall also determine whether 9 there should be a reclassification of benefits for the cost of 10 improvements. If it is determined that a reclassification of 11 benefits should be made, the board shall proceed as provided in 12 section 468.38 . In lieu of publishing the notice of a hearing 13 as provided by this subsection section 362.3 , the board may 14 mail a copy of the notice to each address where a landowner in 15 the district resides by first class mail if the cost of mailing 16 is less than publication of the notice. The mailing shall be 17 made during the time the notice would otherwise be required to 18 be published. 19 b. When ordering the construction of an improvement under 20 this subsection, the board shall comply with the competitive 21 bid requirements applicable to a governing entity ordering the 22 construction of a public improvement in chapter 26. 23 c. If the estimated cost of the improvements as defined 24 in this subsection exceeds twenty-five thousand dollars the 25 competitive bid threshold as provided in section 26.3 , or the 26 original cost of the district plus the cost of subsequent 27 improvements in the district, whichever is the greater amount, 28 a majority of the landowners, owning in the aggregate more than 29 seventy percent of the total land in the district, may file a 30 written remonstrance against the proposed improvements, at or 31 before the time fixed for hearing on the proposed improvements, 32 with the county auditor, or auditors in case the district 33 extends into more than one county. If a remonstrance is filed, 34 the board shall discontinue and dismiss all further proceedings 35 -6- LSB 1111YH (4) 85 da/sc 6/ 11

H.F. 460 on the proposed improvements and charge the costs incurred 1 to date for the proposed improvements to the district. Any 2 interested party may appeal from such orders in the manner 3 provided in this subchapter, parts 1 through 5 . However, this 4 section does not affect the procedures of section 468.132 5 covering the common outlet. 6 Sec. 11. REPEAL. Sections 468.35 and 468.36, Code 2013, 7 are repealed. 8 DIVISION III 9 ANNEXED LAND 10 Sec. 12. Section 468.121, Code 2013, is amended to read as 11 follows: 12 468.121 Levy Assessment levied on annexed lands. 13 After annexation is made territory has been annexed by a 14 drainage or levee district, the board may levy upon the annexed 15 lands an assessment sufficient to equal the assessments for 16 benefit originally paid by the lands of equal classification 17 if the finding by the board as provided by section 468.119 18 was that the lands should have been included in the district 19 when originally established, plus their proportionate share of 20 the costs of any enlargement or extension of drains required 21 to serve the annexed lands. If the finding of the board 22 as provided in section 468.119 was based on the fact that 23 additional lands are now benefited by virtue of the repair, 24 improvement, or the change of the topographical conditions 25 made to the district and were not benefited by the district 26 as originally established, then the board shall levy upon 27 the annexed lands an assessment sufficient to pay their the 28 proportionate share of the costs of the repair or improvement 29 which was the basis for the lands being annexed. If the 30 board finds that the lands are presently receiving benefits 31 from the district but that some were reasonably omitted 32 from the original establishment because of the change of the 33 topographical conditions, the assessments levied upon the 34 annexed lands shall be limited to a proportionate share of 35 -7- LSB 1111YH (4) 85 da/sc 7/ 11

H.F. 460 the costs of current and future maintenance, repairs , and 1 improvements. 2 Sec. 13. NEW SECTION . 468.121A Ordinary and special 3 assessment on annexed lands. 4 1. After annexed lands have been classified and the benefits 5 determined as provided in section 468.120, such classification 6 shall be the basis for all future assessments in the district 7 as which shall be imposed as provided in this subchapter. 8 2. In addition to the assessment described in subsection 1, 9 the board may impose a special assessment on the annexed lands 10 for the cost of improvements made within the district for not 11 longer than five years prior to the date of annexation. 12 a. In order to impose the special assessment the board 13 must approve a report by an engineer appointed by the board as 14 provided in this subchapter stating those improvements directly 15 benefiting the annexed land made within the five-year period. 16 b. The amount of the special assessment shall not exceed the 17 amount that would have been assessed if the annexed land were 18 part of the drainage or levee district during the five previous 19 years. 20 c. This board shall not impose the special assessment if 21 the annexed land is subject to an assessment levied pursuant 22 to section 468.121. 23 DIVISION IV 24 AGREEMENTS 25 Sec. 14. Section 468.187, Code 2013, is amended to read as 26 follows: 27 468.187 Agreements with outside owners or other districts. 28 1. Levee and drainage districts are empowered to enter into 29 agreements with the owners of lands lying inside or outside of 30 said districts, or with other levee and drainage districts or 31 municipalities, to provide levee protection or drainage for 32 such lands on such terms as the board may agree and subject to 33 the following terms and conditions: 34 1. a. The facilities of the district furnishing the service 35 -8- LSB 1111YH (4) 85 da/sc 8/ 11

H.F. 460 shall not be overburdened. 1 2. b. There shall be no additional cost to the district 2 furnishing the service. 3 3. c. The agreement shall be in writing, be made a part of 4 the drainage records and shall include all of the following: 5 a. (1) The description of the lands to be served ; . 6 b. (2) The location of tile lines constructed or to be 7 constructed ; . 8 c. (3) The consideration to be paid to the district 9 furnishing the service and the classification of the lands to 10 be served ; and . 11 d. (4) Such other provisions as the board deems necessary. 12 2. The provisions in an agreement described in subsection 13 1 modify other provisions of this chapter applicable to such 14 lands. 15 EXPLANATION 16 BACKGROUND. When a drainage or levee district is first 17 established, it is managed by a board of supervisors in the 18 county where the district is located or by a joint board of 19 supervisors if the district extends into more than one county 20 (Code chapter 468, subchapter I). After the district has 21 been established, the board of supervisors, or joint board of 22 supervisors, may transfer its jurisdiction to another governing 23 body, including a three-member board of elected trustees. 24 MERGER. This bill provides that one or more drainage or 25 levee districts may merge with another levee or drainage 26 district in such a manner that the surviving drainage or levee 27 district continues to exist and absorbs each old drainage 28 or levee district which dissolves. In order for a merger 29 to occur, the districts must have adjacent borders, the 30 districts must include one or more levees, and the respective 31 boards of the districts must determine that the merger will 32 benefit their district’s landowners. The boards of each 33 proposed old district and the proposed surviving district 34 must conduct hearings separately or jointly. If the merger 35 -9- LSB 1111YH (4) 85 da/sc 9/ 11

H.F. 460 is approved by at least one proposed old district and the 1 board of the proposed surviving district, the boards must 2 meet jointly to vote for the adoption of a merger resolution. 3 The effect of the resolution is to transfer and vest to the 4 surviving district title to real estate or other property 5 and rights-of-way held by an old district. The surviving 6 district assumes all existing obligations of an old district. 7 The merger does not affect a classification of land or the 8 levy of assessments. The bill directs the Code editor to 9 organize these provisions as a new part 7 of Code chapter 468, 10 subchapter I. 11 BIDDING PROCEDURES. A number of provisions require 12 the board to advertise for bids when awarding contracts to 13 construct an improvement or make a repair. The provisions 14 usually require the board to publish a notice in a newspaper, 15 hold a hearing, opening bid responses, posting bonds, and 16 awarding contracts (Code sections 468.34 through 468.37). 17 These provisions apply if the amount of the work exceeds a 18 certain threshold ($20,000). However, the “Iowa Construction 19 Bidding Procedures Act” (Code chapter 26) provides similar 20 requirements for a “governmental entity” defined in part to 21 mean the state, political subdivisions of the state, and all 22 boards or commissions empowered to enter into contracts for 23 the construction of public improvements. The threshold that 24 triggers those requirements is an amount in excess of $100,000. 25 The bill requires the board to follow the competitive bid 26 requirements of Code chapter 26. 27 ANNEXED LAND —— ASSESSMENTS. The bill amends provisions 28 which allow a drainage or levee district to annex territory for 29 purposes of ensuring that persons benefiting from a district 30 also pay for its maintenance (Code section 468.119). The bill 31 provides that after the annexed lands have been classified and 32 the benefits determined by the board, the classifications shall 33 be used as the basis for future assessments. In addition, the 34 board may impose a special assessment on the annexed lands 35 -10- LSB 1111YH (4) 85 da/sc 10/ 11

H.F. 460 for the cost of improvements made within the district for not 1 longer than five years prior to the date of annexation. The 2 amount of the special assessment cannot exceed the amount that 3 would have been assessed if the annexed lands were part of the 4 drainage or levee district during that period. A board which 5 uses this option cannot also assess the land based on current 6 law which provides that the board may impose a levy on assessed 7 land for a cost originally assumed by the district but where 8 not assessed upon the annexed land because such land was not 9 included due to oversight (Code section 468.121). 10 USE OF AGREEMENTS. The bill amends a provision that 11 authorizes the board to enter into agreements with an owner 12 of land located outside the district, or another district or 13 city, in a manner that benefits that outside party (e.g., 14 extending levee protection) subject to a number of conditions 15 (the facilities of the district cannot be overburdened, 16 there cannot be any additional cost to the district, and the 17 agreement must be part of the district’s records). The bill 18 provides that the district may enter into an agreement with an 19 owner of land located within the district. It also provides 20 that the agreement’s provisions may modify any other applicable 21 provision in drainage law. 22 -11- LSB 1111YH (4) 85 da/sc 11/ 11