Senate File 500 - Introduced SENATE FILE 500 BY GUTH A BILL FOR An Act relating to the establishment, repair, and improvement 1 of drainage and levee districts, including by requiring 2 proof of professional liability insurance by civil engineers 3 and providing for rights of landowners. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1788XS (5) 89 da/ns

S.F. 500 DIVISION I 1 REQUIREMENTS FOR ENGINEERS 2 Section 1. Section 468.10, subsection 1, Code 2021, is 3 amended to read as follows: 4 1. The board shall at its first session thereafter, regular, 5 special, or adjourned, examine the petition and if it be found 6 sufficient in form and substance, shall appoint a disinterested 7 and competent civil engineer who shall give bond to the county 8 for the use of the proposed levee or drainage district, if it 9 be established, and if not established, for the use of the 10 petitioners, in amount and with sureties to be approved by 11 the auditor, and conditioned for the faithful and competent 12 performance of the engineer’s duties . The engineer shall 13 provide the board proof of professional liability insurance 14 which shall be maintained for an amount of coverage required 15 by the board. 16 Sec. 2. Section 468.33, Code 2021, is amended to read as 17 follows: 18 468.33 Supervising engineer —— bond insurance . 19 Upon the payment or securing of damages, the board shall 20 appoint a competent civil engineer to have charge of the work 21 of construction thereof, who shall be required , before entering 22 upon the work to give a bond to the county for the use and 23 benefit of the levee or drainage district, to be approved by 24 the auditor in such sum as , to provide to the board proof of 25 professional liability insurance which shall be maintained 26 for an amount of coverage required by the board may fix, 27 conditioned for the faithful discharge of the engineer’s 28 duties . 29 Sec. 3. Section 468.203, Code 2021, is amended to read as 30 follows: 31 468.203 Engineer appointed. 32 After the filing of the plan contemplated in section 468.201 33 the board shall, at its first session thereafter, regular, 34 special , or adjourned, appoint a disinterested and competent 35 -1- LSB 1788XS (5) 89 da/ns 1/ 20

S.F. 500 civil or drainage engineer who shall give bond in an amount 1 to be fixed by the board conditioned for the faithful and 2 competent performance of the engineer’s duties . The engineer 3 shall provide the board proof of professional liability 4 insurance which shall be maintained for an amount of coverage 5 required by the board. 6 Sec. 4. Section 468.287, Code 2021, is amended to read as 7 follows: 8 468.287 Supervising engineer. 9 At the time of finally establishing the district, the 10 boards of the several counties, acting jointly, shall employ 11 a competent civil engineer to have charge and supervision of 12 the construction of the improvement and they shall fix the 13 engineer’s compensation and the engineer shall, before entering 14 upon said work, give a bond running to the several counties for 15 the use and benefit of the district in the same amounts and of 16 like tenor and effect as is provided in districts wholly within 17 one county . The engineer shall provide the boards proof of 18 professional liability insurance which shall be maintained for 19 an amount of coverage required by the boards. A duplicate of 20 such bond proof shall be filed with the auditor of each of said 21 counties. 22 DIVISION II 23 COMPETITIVE BIDDING 24 Sec. 5. Section 468.3, subsection 1, Code 2021, is amended 25 by striking the subsection. 26 Sec. 6. Section 468.3, Code 2021, is amended by adding the 27 following new subsections: 28 NEW SUBSECTION . 5A. The term “construction cost” means 29 the costs of the materials and labor normally provided and 30 completed by a contractor under a construction contract secured 31 by a competitive bid, competitive proposal, or negotiation. 32 NEW SUBSECTION . 6A. The term “cost of repair” means the 33 costs of any repair to an improvement which is subject to 34 special assessment including but not limited to the same type 35 -2- LSB 1788XS (5) 89 da/ns 2/ 20

S.F. 500 of costs specified in subsection 6. 1 Sec. 7. Section 468.3, subsection 6, Code 2021, is amended 2 to read as follows: 3 6. The term “cost of improvements improvement ” means the 4 costs of any improvement which is subject to special assessment 5 including, but not limited to, the costs of engineering, 6 preliminary reports, property valuations, regulatory permits, 7 converted wetland or other mitigation, estimates, plans, 8 specifications, notices, acquisition of land, easements, 9 rights-of-way, construction, repair, connection of existing 10 private tile lines encountered during construction, repairs 11 or replacements or new installations of all surface water 12 entry pipes and subsurface drainage outlet pipes on drainage 13 district open ditches, supervision, inspection, testing, 14 notices and publication, interest during construction and for 15 a reasonable period following the completion of construction, 16 and may include the default fund which shall amount to not more 17 than ten percent of the total cost of an improvement assessed 18 against benefited property land . 19 Sec. 8. Section 468.34, Code 2021, is amended to read as 20 follows: 21 468.34 Advertisement for competitive bids. 22 The If the board provides for a competitive bid process as 23 provided in section 468.35, the board shall publish notice once 24 each week for two consecutive weeks in a newspaper published 25 in the county where the improvement is located, and publish 26 additional advertisement and publication elsewhere as the board 27 may direct. The notice shall state the time and place of 28 letting the work of construction of the improvement, specifying 29 the approximate amount of work to be done in each numbered 30 section of the district, the time fixed for the commencement, 31 and the time of the completion of the work, that bids will 32 be received on the entire work and in sections or divisions 33 of it, and that a bidder will be required to deposit a bid 34 security with the county auditor as provided in section 468.35 . 35 -3- LSB 1788XS (5) 89 da/ns 3/ 20

S.F. 500 All notices shall set the date and time that bids will be 1 received and upon which the work will be let. However, when 2 the estimated cost of the improvement is less than the adjusted 3 competitive bid threshold, the board may let the contract for 4 the construction without taking bids and without publishing 5 notice. 6 Sec. 9. Section 468.35, Code 2021, is amended to read as 7 follows: 8 468.35 Bids —— letting of work —— competitive bid process . 9 1. The board shall award a contract for work ordered by 10 the board using a competitive bid process as provided in this 11 section, if any of the following apply: 12 a. The estimated construction cost for work ordered by the 13 board is one hundred thousand dollars or more under one or more 14 contracts. 15 b. The board determines that a competitive bid process is 16 appropriate for the work ordered. 17 2. If awarding a contract using a competitive bid process, 18 the board shall award the contract or contracts for each 19 section of the work to the lowest responsible bidder or bidders 20 therefor, bids to be submitted, received, and acted upon 21 separately as to the main drain and each of the laterals, and 22 each settling basin, if any, exercising their own discretion as 23 to letting such work as to the main drain as a whole, or as to 24 each lateral as a whole, or by sections as to both main drain 25 and laterals, and reserving the right to reject any and all 26 bids and readvertise the letting of the work. 27 2. 3. A bid submitted under subsection 2 shall be in 28 writing, specifying the portion of the work upon which the 29 bid is made, and filed with the auditor. The bid shall be 30 accompanied with a bid security. The bid security shall be 31 in the form of a deposit of cash, a certified check on and 32 certified by a bank in Iowa, a certified share draft drawn on 33 a credit union in Iowa, or a bid bond with a corporate surety 34 satisfactory to the board as provided in section 73A.20 . The 35 -4- LSB 1788XS (5) 89 da/ns 4/ 20

S.F. 500 bid security must be payable to the auditor or the auditor’s 1 order at the auditor’s office in a sum equal to five percent 2 of the amount of the bid. However, if the maximum limit on a 3 bid security would cause a denial of funds or services from 4 the federal government which would otherwise be available, 5 or if the maximum limit would otherwise be inconsistent with 6 the requirements of federal law, the maximum limit may be 7 suspended to the extent necessary to prevent denial of federal 8 funds or services or to eliminate the inconsistency with 9 federal requirements. The cash, check, or share draft of an 10 unsuccessful bidder shall be returned, and the bid bond of an 11 unsuccessful bidder shall be canceled. The bid security of a 12 successful bidder shall be maintained as a guarantee that the 13 bidder will enter into a contract in accordance with the bids. 14 Sec. 10. Section 468.36, Code 2021, is amended to read as 15 follows: 16 468.36 Performance Letting of work —— competitive bid process 17 —— bond —— return of deposit. 18 A If the board awards a contract or contracts for work 19 ordered by the board using a competitive bid process as 20 provided in section 468.35, the successful bidder is required 21 to execute a bond with sureties approved by the auditor in 22 favor of the county for the use and benefit of the levee or 23 drainage district and all persons entitled to liens for labor 24 or material in an amount not less than seventy-five percent of 25 the contract price of the work to be done, conditioned for the 26 timely, efficient, and complete performance of the contract, 27 and the payment, as they become due, of all just claims for 28 labor performed and material used in carrying out the contract. 29 When a contract is executed and bond approved by the board, the 30 cash, certified check, or certified share draft deposited with 31 the bid shall be returned to the bidder. 32 Sec. 11. Section 468.37, Code 2021, is amended to read as 33 follows: 34 468.37 Contracts. 35 -5- LSB 1788XS (5) 89 da/ns 5/ 20

S.F. 500 All Except as provided in section 468.37A, agreements 1 and contracts for work or materials in constructing the 2 improvements of such district shall be in writing, signed by 3 the chairperson of the board of supervisors for and on behalf 4 of the district and the parties who are to perform the work 5 or furnish the materials specified in such contract. Such 6 contract shall specify the particular work to be done or 7 materials to be furnished, the time when it shall begin and 8 when it shall be completed, the amount to be paid and the times 9 of payment, liquidated damages for late completed work, with 10 such other terms and conditions as to details necessary to a 11 clear understanding of the terms thereof. 12 Sec. 12. NEW SECTION . 468.37A Letting of work without 13 competitive bid process. 14 1. If the board does not use the competitive bid process 15 as provided in section 468.35, it may order the work done and 16 contract with a contractor selected by the board to do the work 17 without advertising as otherwise required in section 468.34 18 or requiring the execution of bond as otherwise required in 19 section 468.36. The board shall not enter into a contract with 20 a contractor unless the contractor provides proof of liability 21 insurance acceptable to the board. 22 2. If the estimated construction cost is less than fifty 23 thousand dollars, the board and the selected contractor shall 24 enter into a contract which is not required to comply with 25 section 468.37. The board shall appoint an engineer to oversee 26 the work. However, if the governing body is a county board of 27 supervisors, the board may designate the county’s secondary 28 roads department to oversee the work. The board shall make 29 payment from the drainage fund the full amount necessary to 30 reimburse the secondary road fund for the full cost of any 31 equipment and labor provided. The board shall make payment to 32 the contractor on a lump sum basis if the board approves the 33 completed work and receives an invoice that does not require 34 correction. The requirements of sections 468.100 through 35 -6- LSB 1788XS (5) 89 da/ns 6/ 20

S.F. 500 468.103 do not apply. 1 3. If the estimated construction cost is fifty thousand 2 dollars or more but less than one hundred thousand dollars, 3 the board may select two or more qualified contractors to 4 submit competitive proposals using plans, specifications, 5 and bid forms prepared by the supervising engineer appointed 6 under section 468.33. The contract shall provide a contract 7 completion date and provide for liquidated damages for late 8 completed work. The board shall make progress payments to the 9 contractor on a monthly basis, and shall retain ten percent 10 of the total amount until thirty days after the board has 11 concluded the project completion hearing and accepted the work 12 pursuant to section 468.103. The requirements of sections 13 468.100 through 468.103 apply. 14 Sec. 13. Section 468.100, subsection 2, Code 2021, is 15 amended to read as follows: 16 2. a. All of the provisions of this section shall, when 17 applicable, apply to repair work and improvement work in the 18 same force and effect as to original construction. 19 b. This section does not apply if the estimated construction 20 cost is less than fifty thousand dollars as provided in section 21 468.37A. 22 Sec. 14. Section 468.101, Code 2021, is amended to read as 23 follows: 24 468.101 Completion of work —— report —— notice. 25 1. When the work to be done under a contract is completed 26 to the satisfaction of the engineer in charge of construction, 27 the engineer shall report and certify that the contract is 28 completed to the board. Upon receipt of the report, the board 29 shall set a day to consider the report and shall give notice 30 of the time and purpose of the meeting by ordinary mail to the 31 owners of the land on which the work was done, and to the owners 32 of each tract of land or lot within the district by publication 33 in a newspaper of general circulation in the county. The 34 publication is not required to name the owners of any tract of 35 -7- LSB 1788XS (5) 89 da/ns 7/ 20

S.F. 500 land or lot within the district. The date for considering the 1 report by the board shall be not less than ten days after the 2 date of mailing, or publication, whichever is later. 3 2. This section does not apply if the estimated construction 4 cost is less than fifty thousand dollars as provided in section 5 468.37A. 6 Sec. 15. Section 468.102, Code 2021, is amended to read as 7 follows: 8 468.102 Objections. 9 1. Any party interested in the said district or the 10 improvement thereof may file objections to said report 11 and submit any evidence tending to show said report should 12 not be accepted. Any interested party having a claim for 13 damages arising out of the construction of the improvement 14 or repair shall file said claim with the board at or before 15 the time fixed for hearing on the completion of the contract, 16 which claim shall not include any claim for land taken for 17 right-of-way or for severance of land. 18 2. This section does not apply if the estimated construction 19 cost is less than fifty thousand dollars as provided in section 20 468.37A. 21 Sec. 16. Section 468.103, Code 2021, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 3. This section does not apply if the 24 construction cost is less than fifty thousand dollars as 25 provided in section 468.37A. 26 Sec. 17. REPEAL. Section 468.66, Code 2021, is repealed. 27 DIVISION III 28 REPAIRS AND IMPROVEMENTS 29 Sec. 18. Section 468.126, subsections 1, 2, 3, and 4, Code 30 2021, are amended to read as follows: 31 1. When any levee or drainage district has been established 32 and the improvement constructed, the improvement shall be at 33 all times under the supervision of the board of supervisors 34 except as otherwise provided for control and management by a 35 -8- LSB 1788XS (5) 89 da/ns 8/ 20

S.F. 500 board of trustees and the . A board shall keep the improvement 1 in repair as provided in this section . 2 a. The board at any time on its own motion, without notice, 3 may order done whatever is necessary to restore or maintain a 4 drainage or levee an improvement in its original efficiency 5 or capacity, and for that purpose may remove silt and debris, 6 repair any damaged structures, remove weeds and other vegetable 7 growth, and whatever else may be needed to restore or maintain 8 such efficiency or capacity or to prolong its useful life. 9 b. In considering a proposed repair to an improvement, 10 the board shall hold an informational meeting of interested 11 landowners in the district. An interested landowner includes 12 the owner of land which may be included in the proposed 13 benefited area or the proposed area which otherwise may be 14 subject to special assessment for the proposed repair. 15 (1) The board shall not appoint an engineer to prepare 16 an engineer’s report until after it holds the informational 17 meeting. However, the board may appoint an engineer to attend 18 the informational meeting if it determines that the engineer’s 19 involvement may better assist persons in presenting information 20 or the board in making a decision regarding the proposed 21 repair. 22 (2) The board shall set a date for the informational meeting 23 and order the auditor to notify interested landowners of the 24 informational meeting’s location, date, and time by ordinary 25 mail. The date of the meeting shall not be less than ten days 26 after the date that the meeting notice is mailed. 27 (3) At the informational meeting, the board shall explain 28 to interested landowners in attendance the board’s process of 29 ordering the repair and paying for the cost of repair. The 30 board shall answer all relevant questions and consider all 31 relevant comments presented at the informational meeting, and 32 may consider changing the scope of the engineer’s study and 33 report. 34 (4) (a) This paragraph “b” does not apply if the board 35 -9- LSB 1788XS (5) 89 da/ns 9/ 20

S.F. 500 determines that a repair must be made on an emergency basis or 1 that the estimated cost of repair is minor. 2 (b) A failure to notify an interested landowner of an 3 informational meeting under this paragraph “b” is not a basis to 4 challenge the validity of the informational meeting or a board 5 action. 6 b. c. The After the informational meeting is held, or if 7 the board is not required to hold an informational meeting, as 8 provided in paragraph “b” , the board may at any time obtain 9 appoint an engineer and enter an order for the preparation 10 of an engineer’s report regarding the most feasible means of 11 repairing a drainage or levee an improvement and the probable 12 cost of making the repair. The engineer’s report shall provide 13 the estimated cost of repair, the identity of each parcel 14 in the district to be assessed for the proposed repair, the 15 identity of eligible parcels in the district that would benefit 16 from the proposed repair, and the estimated total size of the 17 affected area in the district that would benefit from the or be 18 assessed for the proposed repair. The engineer’s report shall 19 be filed with the auditor before the board’s action to approve 20 the report. 21 (1) If the engineer advises, or the board otherwise 22 concludes that permanent restoration of a damaged structure 23 is not feasible at the time, the board may order temporary 24 construction it deems necessary to the continued functioning of 25 the improvement. If in maintaining and repairing tile lines 26 the board finds from an engineer’s report concludes it is more 27 economical to construct a new line than to repair the existing 28 line, the new line may be considered to be a repair. 29 c. (2) (a) If the estimated cost of the repair does not 30 exceed fifty thousand dollars minimum cost of repair threshold 31 is satisfied , the board may approve the proposed repair and 32 order the work done without conducting holding a hearing on the 33 matter. This paragraph “c” does not restrict the authority 34 of the board from holding a hearing regardless of the cost of 35 -10- LSB 1788XS (5) 89 da/ns 10/ 20

S.F. 500 repair in the same manner as a hearing required under this 1 section. 2 (b) Otherwise, If the board holds a hearing regarding the 3 proposed repair, the board shall set a schedule the hearing and 4 order the auditor to send a notice of the hearing to the owners 5 of the parcels proposed to be subject to a special assessment 6 for the proposed repair as presented in the engineer’s report. 7 The notice shall state the location, date for a , and time of 8 the hearing and provide notice of the hearing to landowners in 9 the district by publication in the same manner as . The notice 10 shall be made as provided in section 468.15 sections 468.14 11 through 468.18 . However, if the estimated cost of the repair 12 exceeds the adjusted competitive bid threshold, the board shall 13 provide notice to the landowners pursuant to sections 468.14 14 through 468.18 . 15 (c) As used in this subparagraph (2), the minimum cost of 16 repair threshold is satisfied if the estimated cost of repair 17 for the estimated total size of the affected area as provided 18 in the engineer’s report provided in this paragraph “c” is less 19 than the estimated cost of repair according to the following 20 schedule: 21 (i) If the estimated total size of the affected area in the 22 district is less than two thousand acres, an estimated cost of 23 repair of sixty thousand dollars. 24 (ii) If the estimated total size of the affected area in 25 the district is two thousand acres or more but less than four 26 thousand acres, an estimated cost of repair of one hundred 27 twenty thousand dollars. 28 (iii) If the estimated total size of the affected area in 29 the district is four thousand acres or more but less than eight 30 thousand acres, an estimated cost of repair of two hundred 31 thousand dollars. 32 (iv) If the estimated total size of the affected area in the 33 district is eight thousand acres or more but less than sixteen 34 thousand acres, an estimated cost of repair of three hundred 35 -11- LSB 1788XS (5) 89 da/ns 11/ 20

S.F. 500 thousand dollars. 1 (v) If the estimated total size of the affected area in 2 the district is sixteen thousand acres or more but less than 3 thirty-two thousand acres, an estimated cost of repair of four 4 hundred thousand dollars. 5 (vi) If the estimated total size of the affected area in 6 the district is thirty-two thousand acres or more but less than 7 sixty-four thousand acres, an estimated cost of repair of five 8 hundred thousand dollars. 9 (vii) If the estimated total size of the affected area in 10 the district is sixty-four thousand acres or more, an estimated 11 cost of the repair of six hundred thousand dollars. 12 (3) The board shall not divide a proposed repair into 13 separate programs in order to avoid the notice and hearing 14 requirements of this paragraph “c” . 15 d. (4) If a hearing is required to be held under this 16 paragraph “c” , the board shall appoint an engineer and order 17 an engineer’s report or a report from the soil and water 18 conservation district conservationist regarding the matter to 19 be presented at the hearing. The board may waive the report 20 requirement if a prior report on the repair exists and that 21 report is less than ten years old. However, the engineer 22 shall review and amend the report as necessary to update 23 the estimated cost of repair, identify the affected area in 24 the district that would benefit from or be assessed for the 25 proposed repair, and identify the estimated total size of the 26 affected area. At the hearing, the board shall hear consider 27 facts and recommendations presented at the hearing, including 28 objections to the feasibility of making the proposed repair. 29 At any time prior to the final adoption of the plan, the board 30 may order the plan to be amended. 31 e. d. Following a the conclusion of the hearing , if 32 required provided in paragraph “c” , the board shall determine 33 whether the proposed repair is necessary or desirable, and 34 feasible. If the board determines the proposed repair is 35 -12- LSB 1788XS (5) 89 da/ns 12/ 20

S.F. 500 necessary or desirable, and feasible, it shall order that the 1 proposed repair be made. 2 f. e. Any interested party has the right of appeal from 3 such orders an order of the board under this subsection in the 4 manner provided in this subchapter, parts 1 through 5 . 5 g. f. The right of remonstrance does not apply to a repair 6 as provided in this section . 7 2. In the case of a repair, or the eradication of brush or 8 weeds along the open ditches, not in excess of the adjusted 9 competitive bid threshold fifty thousand dollars , where the 10 board finds that a saving to the district will result, the 11 board may cause the repairs or eradication to be done by 12 secondary road fund equipment, or weed fund equipment, and 13 labor of the county and then reimburse the secondary road fund 14 or the weed fund from the fund of the drainage district thus 15 benefited. 16 3. When the board deems it necessary it , the board may order 17 the repair or reconstruct the reconstruction of an outlet of 18 any private tile line which empties into a drainage ditch of 19 any district and , or may order the repair or reconstruction of 20 any connection of a private drain tile to a district drain. 21 The board may charge the cost of repair or reconstruction to 22 the district. However, if the board determines that the repair 23 or reconstruction is required due to a failure to construct the 24 outlet or drain tile in compliance with specifications made by 25 the board under section 468.140, the board may assess the costs 26 in each case against the land served by the private tile line 27 where the repair or reconstruction was made . 28 4. a. For the purpose of this subsection , an “improvement” 29 in a drainage or levee district in which any ditch, tile drain, 30 or other facility has previously been constructed is a project 31 intended to expand, enlarge, or otherwise increase the capacity 32 of any existing ditch, drain, or other facility above that for 33 which it was designed. 34 b. (1) When the board determines that an a contemplated 35 -13- LSB 1788XS (5) 89 da/ns 13/ 20

S.F. 500 improvement is necessary or desirable, and feasible, the board 1 shall appoint an engineer to make and order the preparation 2 of an engineer’s study and report. The engineer’s report 3 shall include the results of any surveys as seem appropriate 4 to determine the nature and extent of the improvement, and to 5 file a report showing what a description of the contemplated 6 improvement is recommended and its , the estimated construction 7 cost, which the estimated cost of improvement, the identity 8 of each parcel in the district that would benefit from the 9 contemplated improvement, the estimated benefited area in 10 each parcel, the ownership of each parcel and the estimated 11 total size of the area in the district that would benefit 12 from the proposed improvement. The engineer’s report may be 13 amended before the board’s final action approving the proposed 14 improvement . The engineer’s report shall be filed with the 15 auditor. 16 (2) If the board determines that a contemplated improvement 17 is not to an existing facility of the district or if an 18 extension of an existing facility is primarily intended to 19 bring land into the district which is not otherwise benefited 20 by any other facilities of the district, the board shall 21 require that the contemplated improvement be pursued as 22 a new drainage district or as a new subdrainage district. 23 However, the board shall retain jurisdiction to pursue the 24 contemplated improvement under this subsection if an owner or 25 owners of land in the district that would be benefited by the 26 contemplated improvement file a petition complying with section 27 468.8 requesting the contemplated improvement and post a bond 28 complying with section 468.9 conditioned for the payment of 29 all costs and expenses incurred in the proceedings in case a 30 contemplated improvement is not approved and constructed. 31 c. Before the engineer begins work, the board shall hold an 32 informational meeting of interested landowners in the district. 33 An interested landowner includes the owner of land in the 34 district which may be included in the proposed benefited area. 35 -14- LSB 1788XS (5) 89 da/ns 14/ 20

S.F. 500 (1) The board shall set a date for the informational meeting 1 and order the auditor to notify interested landowners of the 2 informational meeting’s location, date, and time by ordinary 3 mail. The date of the meeting shall not be less than ten days 4 after the date that the notice is mailed. 5 (2) At the informational meeting, the board shall explain 6 to interested landowners in attendance the board’s process 7 of ordering the improvement, assessing benefits of the 8 improvement, a landowner’s right to support or object to the 9 proposed improvement at a future hearing, and the landowner’s 10 right of remonstrance as provided in this subsection. The 11 board shall answer all relevant questions and consider all 12 relevant comments presented at the informational meeting, and 13 may consider changing the scope of the engineer’s study and 14 report. 15 (3) A failure to notify a landowner of an informational 16 meeting under this paragraph “c” is not a basis to challenge the 17 validity of the informational meeting or a board action. 18 d. After the engineer’s report is filed with the auditor as 19 provided in paragraph “c” , the board shall consider the report, 20 order the report to be tentatively approved, with or without 21 amendment, and order a hearing as follows: 22 c. (1) If the estimated cost of the improvement does not 23 exceed fifty thousand dollars minimum cost of improvement 24 threshold is satisfied , the board may approve the proposed 25 improvement and order the work done without conducting holding 26 a hearing on the matter. Otherwise, the board shall set a date 27 for schedule a hearing on regarding the proposed improvement. 28 This paragraph “d” does not restrict the authority of the board 29 from holding a hearing regardless of the cost of improvement in 30 the same manner as for a hearing required under this subsection 31 except that the right of remonstrance shall not be available. 32 (2) The board shall order the auditor to send a notice of a 33 hearing held under this subsection to the owners of the land 34 in the affected area as provided in the engineer’s report. 35 -15- LSB 1788XS (5) 89 da/ns 15/ 20

S.F. 500 The notice shall state the location, date, and time of the 1 hearing and state that the board shall consider whether to 2 construct the proposed improvement and whether there shall be 3 a reclassification of benefits for the cost of the proposed 4 improvement. The notice shall be made in the same manner as 5 provided in sections 468.14 through 468.18. 6 (1) (a) The board shall provide notice to landowners in 7 the district by publication in the same manner as provided 8 in section 468.15 . However, if the estimated cost of the 9 improvement exceeds the adjusted competitive bid threshold, 10 the board shall provide notice to the landowners pursuant to 11 sections 468.14 through 468.18 . 12 (b) Notwithstanding subparagraph division (a), and in lieu 13 of publishing the notice, the board may mail a copy of the 14 notice to each address where a landowner within the district 15 resides by first class mail if the cost of mailing is less 16 than publication of the notice. The mailing shall be made 17 during the time the notice would otherwise be required to be 18 published. 19 (3) As used in this paragraph “d” , the minimum cost of 20 improvement threshold is satisfied if the estimated cost of 21 improvements for the estimated total size of the affected 22 area in the district as provided in the engineer’s report is 23 less than the estimated cost of improvement according to the 24 following schedule: 25 (a) If the estimated total size of the affected area in the 26 district is less than two thousand acres, an estimated cost of 27 improvement of thirty thousand dollars. 28 (b) If the estimated total size of the affected area in 29 the district is two thousand acres or more but less than four 30 thousand acres, an estimated cost of improvement of sixty 31 thousand dollars. 32 (c) If the estimated total size of the affected area in the 33 district is four thousand acres or more but less than eight 34 thousand acres, an estimated cost of improvement of one hundred 35 -16- LSB 1788XS (5) 89 da/ns 16/ 20

S.F. 500 thousand dollars. 1 (d) If the estimated total size of the affected area in the 2 district is eight thousand acres or more but less than sixteen 3 thousand acres, an estimated cost of improvement of one hundred 4 fifty thousand dollars. 5 (e) If the estimated total size of the affected area in 6 the district is sixteen thousand acres or more but less than 7 thirty-two thousand acres, an estimated cost of improvement of 8 two hundred thousand dollars. 9 (f) If the estimated total size of the affected area in the 10 district is thirty-two thousand acres or more but less than 11 sixty-four thousand acres, an estimated cost of improvement of 12 two hundred fifty thousand dollars. 13 (g) If the estimated total size of the affected area in the 14 district is sixty-four thousand acres or more, an estimated 15 cost of improvement of three hundred thousand dollars. 16 (2) (4) The board shall not divide proposed improvements 17 into separate programs in order to avoid compliance with this 18 paragraph “c” subsection . 19 d. (5) At the If a hearing , if required in is to be held 20 under this paragraph “c” “d” , the board shall hear consider 21 objections to the feasibility of the proposed improvements 22 improvement and arguments for or against a reclassification 23 presented by or for any taxpayer of the district. Following 24 the hearing, the board shall determine whether to approve 25 the proposed improvement and order that the improvement it 26 deems necessary or desirable and feasible be made and its 27 construction. The board shall also determine whether there 28 should be a reclassification of benefits for the cost of the 29 improvement. If it is determined that a reclassification of 30 benefits should be made, the board shall proceed as provided 31 in section 468.38 . 32 e. If the estimated cost of the improvement exceeds 33 the adjusted competitive bid minimum cost of improvement 34 threshold, or the original cost of the district plus the cost 35 -17- LSB 1788XS (5) 89 da/ns 17/ 20