Senate File 2151 - Introduced SENATE FILE 2151 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 5637XS (4) 90 da/ns
S.F. 2151 DIVISION I 1 REQUIREMENTS FOR ENGINEERS 2 Section 1. Section 468.10, subsection 1, Code 2024, 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 2024, 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 2024, 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 5637XS (4) 90 da/ns 1/ 21
S.F. 2151 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 2024, 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 2024, is amended 25 by striking the subsection. 26 Sec. 6. Section 468.3, Code 2024, 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 of a drainage district 34 which is subject to special assessment including but not 35 -2- LSB 5637XS (4) 90 da/ns 2/ 21
S.F. 2151 limited to the same type of costs specified in subsection 6. 1 Sec. 7. Section 468.3, subsection 6, Code 2024, is amended 2 to read as follows: 3 6. a. The term “cost of improvements” “cost of improvement” 4 means the costs of any improvement which is subject to 5 special assessment including, but not limited to, the costs 6 of engineering, preliminary reports, property valuations, 7 regulatory permits, converted wetland or other mitigation, 8 estimates, plans, specifications, notices, acquisition of land, 9 easements, rights-of-way, construction, repair, connection of 10 existing private tile lines encountered during construction 11 across or to the new drain, supervision, inspection, testing, 12 notices and publication, interest during construction and for 13 a reasonable period following the completion of construction, 14 and may include the default fund which shall amount to not more 15 than ten percent of the total cost of an improvement assessed 16 against benefited property land . 17 b. “Cost of improvement” also includes repairs or 18 replacements or new installations of all surface water entry 19 pipes and subsurface drainage outlet pipes on drainage district 20 open ditches not otherwise accomplished by the board under 21 section 468.126, subsection 3. 22 Sec. 8. Section 468.34, Code 2024, is amended to read as 23 follows: 24 468.34 Advertisement for competitive bids. 25 The If the board provides for a competitive bid process as 26 provided in section 468.35, the board shall publish notice once 27 each week for two consecutive weeks in a newspaper published 28 in the county where the improvement is located, and publish 29 additional advertisement and publication elsewhere as the board 30 may direct. The notice shall state the time and place of 31 letting the work of construction of the improvement, specifying 32 the approximate amount of work to be done in each numbered 33 section of the district, the time fixed for the commencement, 34 and the time of the completion of the work, that bids will 35 -3- LSB 5637XS (4) 90 da/ns 3/ 21
S.F. 2151 be received on the entire work and in sections or divisions 1 of it, and that a bidder will be required to deposit a bid 2 security with the county auditor as provided in section 468.35 . 3 All notices shall set the date and time that bids will be 4 received and upon which the work will be let. However, when 5 the estimated cost of the improvement is less than the adjusted 6 competitive bid threshold, the board may let the contract for 7 the construction without taking bids and without publishing 8 notice. 9 Sec. 9. Section 468.35, Code 2024, is amended to read as 10 follows: 11 468.35 Bids —— letting of work —— competitive bid process . 12 1. The board shall award a contract for work ordered by 13 the board using a competitive bid process as provided in this 14 section, if any of the following apply: 15 a. The estimated construction cost for work ordered by the 16 board is one hundred thousand dollars or more to be assessed 17 for benefits on lands in the same drainage district under one 18 or more contracts. 19 b. The board determines that a competitive bid process is 20 appropriate for the work ordered. 21 2. If awarding a contract using a competitive bid process, 22 the board shall award the contract or contracts for each 23 section of the work to the lowest responsible bidder or bidders 24 therefor, bids to be submitted, received, and acted upon 25 separately as to the main drain and each of the laterals, and 26 each settling basin, if any, exercising their own discretion as 27 to letting such work as to the main drain as a whole, or as to 28 each lateral as a whole, or by sections as to both main drain 29 and laterals, and reserving the right to reject any and all 30 bids and readvertise the letting of the work. 31 2. 3. A bid submitted under subsection 2 shall be in 32 writing, specifying the portion of the work upon which the 33 bid is made, and filed with the auditor. The bid shall be 34 accompanied with a bid security. The bid security shall be 35 -4- LSB 5637XS (4) 90 da/ns 4/ 21
S.F. 2151 in the form of a deposit of cash, a certified check on and 1 certified by a bank in Iowa, a certified share draft drawn on 2 a credit union in Iowa, or a bid bond with a corporate surety 3 satisfactory to the board as provided in section 73A.20 . The 4 bid security must be payable to the auditor or the auditor’s 5 order at the auditor’s office in a sum equal to five percent 6 of the amount of the bid. However, if the maximum limit on a 7 bid security would cause a denial of funds or services from 8 the federal government which would otherwise be available, 9 or if the maximum limit would otherwise be inconsistent with 10 the requirements of federal law, the maximum limit may be 11 suspended to the extent necessary to prevent denial of federal 12 funds or services or to eliminate the inconsistency with 13 federal requirements. The cash, check, or share draft of an 14 unsuccessful bidder shall be returned, and the bid bond of an 15 unsuccessful bidder shall be canceled. The bid security of a 16 successful bidder shall be maintained as a guarantee that the 17 bidder will enter into a contract in accordance with the bids. 18 Sec. 10. Section 468.36, Code 2024, is amended to read as 19 follows: 20 468.36 Performance Letting of work —— competitive bid process 21 —— bond —— return of deposit. 22 A If the board awards a contract or contracts for work 23 ordered by the board using a competitive bid process as 24 provided in section 468.35, the successful bidder is required 25 to execute a bond with sureties approved by the auditor in 26 favor of the county for the use and benefit of the levee or 27 drainage district and all persons entitled to liens for labor 28 or material in an amount not less than seventy-five percent of 29 the contract price of the work to be done, conditioned for the 30 timely, efficient, and complete performance of the contract, 31 and the payment, as they become due, of all just claims for 32 labor performed and material used in carrying out the contract. 33 When a contract is executed and bond approved by the board, the 34 cash, certified check, or certified share draft deposited with 35 -5- LSB 5637XS (4) 90 da/ns 5/ 21
S.F. 2151 the bid shall be returned to the bidder. 1 Sec. 11. Section 468.37, Code 2024, is amended to read as 2 follows: 3 468.37 Contracts. 4 All agreements and contracts for work or materials in 5 constructing the improvements of a district shall be in writing 6 and be signed by the chairperson of the board of supervisors 7 for and on behalf of the district and the parties who are to 8 perform the work or furnish the materials specified in the 9 contract. The contract shall specify the particular work to 10 be done or materials to be furnished, the time when it shall 11 begin and when it shall be completed, the amount to be paid 12 and the times of payment, and contain liquidated damages for 13 late completed work, with such other terms and conditions as to 14 details as are necessary to a clear understanding of the terms 15 of the contract. 16 Sec. 12. NEW SECTION . 468.37A Letting of work without 17 competitive bid process. 18 1. If the board does not use the competitive bid process 19 as provided in section 468.35, it may order the work done and 20 contract with a contractor selected by the board to do the work 21 without advertising as otherwise required in section 468.34 22 or requiring the execution of bond as otherwise required in 23 section 468.36. The board shall not enter into a contract with 24 a contractor unless the contractor provides proof of liability 25 insurance acceptable to the board. 26 2. If the estimated construction cost is less than fifty 27 thousand dollars, the board and the selected contractor shall 28 enter into a contract which is not required to comply with 29 section 468.37. The board shall appoint an engineer to oversee 30 the work. However, if the governing body is a county board of 31 supervisors, the board may designate the county’s secondary 32 roads department to oversee the work. The board shall make 33 payment from the drainage fund the full amount necessary to 34 reimburse the secondary road fund for the full cost of any 35 -6- LSB 5637XS (4) 90 da/ns 6/ 21
S.F. 2151 equipment and labor provided. The board shall make payment to 1 the contractor on a lump sum basis if the board approves the 2 completed work and receives an invoice that does not require 3 correction. The requirements of sections 468.100 through 4 468.103 do not apply. 5 3. If the estimated construction cost is fifty thousand 6 dollars or more but less than one hundred thousand dollars, 7 the board may select two or more qualified contractors to 8 submit competitive proposals using plans, specifications, 9 and bid forms prepared by the supervising engineer appointed 10 under section 468.33. The contract shall provide a contract 11 completion date and provide for liquidated damages for late 12 completed work. The board shall make progress payments to the 13 contractor on a monthly basis, and shall retain ten percent of 14 each payment until thirty days after the board has concluded 15 the project completion hearing and accepted the work pursuant 16 to section 468.103. The requirements of sections 468.100 17 through 468.103 apply. 18 Sec. 13. Section 468.100, subsection 2, Code 2024, is 19 amended to read as follows: 20 2. a. All of the provisions of this section shall, when 21 applicable, apply to repair work and improvement work in the 22 same force and effect as to original construction. 23 b. This section does not apply if the estimated construction 24 cost is less than fifty thousand dollars as provided in section 25 468.37A. 26 Sec. 14. Section 468.101, Code 2024, is amended to read as 27 follows: 28 468.101 Completion of work —— report —— notice. 29 1. When the work to be done under a contract is completed 30 to the satisfaction of the engineer in charge of construction, 31 the engineer shall report and certify that the contract is 32 completed to the board. Upon receipt of the report, the board 33 shall set a day to consider the report and shall give notice 34 of the time and purpose of the meeting by ordinary mail to the 35 -7- LSB 5637XS (4) 90 da/ns 7/ 21
S.F. 2151 owners of the land on which the work was done, and to the owners 1 of each tract of land or lot within the district by publication 2 in a newspaper of general circulation in the county. The 3 publication is not required to name the owners of any tract of 4 land or lot within the district. The date for considering the 5 report by the board shall be not less than ten days after the 6 date of mailing, or publication, whichever is later. 7 2. This section does not apply if the estimated construction 8 cost is less than fifty thousand dollars as provided in section 9 468.37A. 10 Sec. 15. Section 468.102, Code 2024, is amended to read as 11 follows: 12 468.102 Objections. 13 1. Any party interested in the district or the improvement 14 thereof may file objections to the report made under section 15 468.101 and submit any evidence tending to show that the report 16 should not be accepted. Any interested party having a claim 17 for damages arising out of the construction of the improvement 18 or repair shall file the claim with the board at or before 19 the time fixed for hearing on the completion of the contract, 20 which claim shall not include any claim for land taken for 21 right-of-way or for severance of land. 22 2. This section does not apply if the estimated construction 23 cost is less than fifty thousand dollars as provided in section 24 468.37A. 25 Sec. 16. Section 468.103, Code 2024, is amended by adding 26 the following new subsection: 27 NEW SUBSECTION . 3. This section does not apply if the 28 construction cost is less than fifty thousand dollars as 29 provided in section 468.37A. 30 Sec. 17. REPEAL. Section 468.66, Code 2024, is repealed. 31 DIVISION III 32 REPAIRS AND IMPROVEMENTS 33 Sec. 18. Section 468.126, subsections 1, 2, 3, and 4, Code 34 2024, are amended to read as follows: 35 -8- LSB 5637XS (4) 90 da/ns 8/ 21
S.F. 2151 1. When any levee or drainage district has been established 1 and the improvement constructed, the improvement shall be at 2 all times under the supervision of the board of supervisors 3 except as otherwise provided for control and management by a 4 board of trustees and the . A board shall keep the improvement 5 in repair as provided in this section . The board may authorize 6 one or more board members or trustees, watchpersons employed 7 under section 468.169, or other employees of the district to 8 identify minor maintenance needs, determine and recommend 9 repairs, engage contractors, and oversee the repair work 10 construction, if the cost is not more than seventy-five 11 thousand dollars. The board may also engage the county 12 engineer and the secondary road department under subsection 13 2 to manage the minor repairs and also larger repairs, if 14 construction costs are less than the district’s repair cost 15 threshold but not more than one hundred fifty thousand dollars. 16 a. The board at any time on its own motion, without notice, 17 may order done whatever is necessary to restore or maintain a 18 drainage or levee an improvement in its original efficiency 19 or capacity, and for that purpose may remove silt and debris, 20 repair any damaged structures, remove weeds and other vegetable 21 growth, and whatever else may be needed to restore or maintain 22 such efficiency or capacity or to prolong its useful life. 23 b. In considering a proposed repair to an improvement, 24 the board shall hold an informational meeting of interested 25 landowners in the district, if the board is reasonably assured 26 that the repair cost will exceed the repair cost threshold. 27 However, the board may hold the informational meeting for a 28 lower cost repair. An interested landowner includes the owner 29 of land which may be included in the proposed benefited area 30 or the proposed area which otherwise may be subject to special 31 assessment for the proposed repair. 32 (1) The board shall not appoint an engineer to prepare 33 an engineer’s report until after it holds the informational 34 meeting if one is required. However, the board may appoint an 35 -9- LSB 5637XS (4) 90 da/ns 9/ 21
S.F. 2151 engineer to attend the informational meeting if it determines 1 that the engineer’s involvement may better assist persons 2 in presenting information or the board in making a decision 3 regarding the proposed repair. 4 (2) The board shall set a date for the informational meeting 5 and order the auditor to notify interested landowners of the 6 informational meeting’s location, date, and time by ordinary 7 mail. The date of the meeting shall not be less than ten days 8 after the date that the meeting notice is mailed. 9 (3) At the informational meeting, the board shall explain 10 to interested landowners in attendance the board’s process of 11 ordering the repair and paying for the cost of repair. The 12 board shall answer all relevant questions and consider all 13 relevant comments presented at the informational meeting, and 14 may consider changing the scope of the engineer’s study and 15 report. 16 (4) (a) This paragraph “b” does not apply if the board 17 determines that a repair must be made on an emergency basis or 18 that the estimated cost of repair is minor. 19 (b) A failure to notify an interested landowner of an 20 informational meeting under this paragraph “b” is not a basis to 21 challenge the validity of the informational meeting or a board 22 action. 23 b. c. The After the informational meeting is held, or if 24 the board is not required to hold an informational meeting, as 25 provided in paragraph “b” , the board may at any time obtain 26 appoint an engineer and enter an order for the preparation 27 of an engineer’s report regarding the most feasible means of 28 repairing a drainage or levee an improvement and the probable 29 cost of making the repair. The engineer’s report shall provide 30 the estimated cost of repair, the identity of each parcel 31 in the district to be assessed for the proposed repair, the 32 identity of eligible parcels in the district that would benefit 33 from the proposed repair, and the estimated total size of the 34 affected area in the district that would benefit from the or be 35 -10- LSB 5637XS (4) 90 da/ns 10/ 21
S.F. 2151 assessed for the proposed repair. The engineer’s report shall 1 be filed with the auditor before the board’s action to approve 2 the report. 3 (1) If the engineer advises, or the board otherwise 4 concludes that permanent restoration of a damaged structure 5 is not feasible at the time, the board may order temporary 6 construction it deems necessary to the continued functioning of 7 the improvement. If in maintaining and repairing tile lines 8 the board finds from an engineer’s report concludes that it is 9 more economical to construct a new line of the best historic 10 efficiency and capacity than to repair the existing line, the 11 new line may be considered to be a repair. 12 c. (2) (a) If the estimated cost of the repair does not 13 exceed fifty thousand dollars minimum cost of repair threshold 14 is satisfied , the board may approve the proposed repair and 15 order the work done without conducting holding a hearing on the 16 matter. Otherwise, This paragraph “c” does not restrict the 17 authority of the board from holding a hearing regardless of the 18 cost of repair in the same manner as a hearing required under 19 this section. 20 (b) If the board holds a hearing regarding the proposed 21 repair, the board shall set a schedule the hearing and order 22 the auditor to send a notice of the hearing to the owners of 23 the parcels proposed to be subject to a special assessment for 24 the proposed repair as presented in the engineer’s report. The 25 notice shall state the location, date for a , and time of the 26 hearing and provide notice of the hearing to landowners in the 27 district by publication in the same manner as . The notice 28 shall be made as provided in section 468.15 sections 468.14 29 through 468.18 . However, if the estimated cost of the repair 30 exceeds the adjusted competitive bid threshold, the board shall 31 provide notice to the landowners pursuant to sections 468.14 32 through 468.18 . 33 (c) As used in this subparagraph (2), the minimum cost of 34 repair threshold is satisfied if the estimated cost of repair 35 -11- LSB 5637XS (4) 90 da/ns 11/ 21
S.F. 2151 for the estimated total size of the affected area as provided 1 in the engineer’s report provided in this paragraph “c” is less 2 than the estimated cost of repair according to the following 3 schedule: 4 (i) If the estimated total size of the affected area in the 5 district is less than two thousand acres, an estimated cost of 6 repair of sixty thousand dollars. 7 (ii) If the estimated total size of the affected area in 8 the district is two thousand acres or more but less than four 9 thousand acres, an estimated cost of repair of one hundred 10 twenty thousand dollars. 11 (iii) If the estimated total size of the affected area in 12 the district is four thousand acres or more but less than eight 13 thousand acres, an estimated cost of repair of two hundred 14 thousand dollars. 15 (iv) If the estimated total size of the affected area in the 16 district is eight thousand acres or more but less than sixteen 17 thousand acres, an estimated cost of repair of three hundred 18 thousand dollars. 19 (v) If the estimated total size of the affected area in 20 the district is sixteen thousand acres or more but less than 21 thirty-two thousand acres, an estimated cost of repair of four 22 hundred thousand dollars. 23 (vi) If the estimated total size of the affected area in 24 the district is thirty-two thousand acres or more but less than 25 sixty-four thousand acres, an estimated cost of repair of five 26 hundred thousand dollars. 27 (vii) If the estimated total size of the affected area in 28 the district is sixty-four thousand acres or more, an estimated 29 cost of the repair of six hundred thousand dollars. 30 (3) The board shall not divide a proposed repair into 31 separate programs in order to avoid the notice and hearing 32 requirements of this paragraph “c” . 33 d. (4) Notwithstanding paragraph “b” “c” , if the estimated 34 cost of the repair exceeds fifty thousand dollars or the 35 -12- LSB 5637XS (4) 90 da/ns 12/ 21
S.F. 2151 adjusted competitive bid threshold, whichever is more, the 1 board shall order an engineer’s report or a report from the 2 soil and water conservation district conservationist regarding 3 the matter which shall be presented at the hearing provided in 4 paragraph “c” . The board may waive the report requirement if a 5 prior report on the repair exists and that report is less than 6 ten years old. However, the engineer shall review and amend 7 the report as necessary to update the estimated cost of repair, 8 identify the affected area in the district that would benefit 9 from or be assessed for the proposed repair, and identify the 10 estimated total size of the affected area. At the hearing, the 11 board shall hear consider facts and recommendations presented 12 at the hearing, including objections to the feasibility of 13 making the proposed repair. At any time prior to the final 14 adoption of the plan, the board may order the plan to be 15 amended. 16 e. d. Following a the conclusion of the hearing , if 17 required provided in paragraph “c” , the board shall determine 18 whether the proposed repair is necessary or desirable, and 19 feasible. If the board determines the proposed repair is 20 necessary or desirable, and feasible, it shall order that the 21 proposed repair be made. 22 f. e. Any interested party has the right of appeal from 23 such orders an order of the board under this subsection in the 24 manner provided in this subchapter, parts 1 through 5 . 25 g. f. The right of remonstrance does not apply to a repair 26 as provided in this section . 27 2. In the case of a repair, or the eradication of brush or 28 weeds along the open ditches, not in excess of the adjusted 29 competitive bid threshold fifty thousand dollars , where the 30 board finds that a saving to the district will result, the 31 board may cause the repairs or eradication to be done by 32 secondary road fund equipment, or weed fund equipment, and 33 labor of the county and then reimburse the secondary road fund 34 or the weed fund from the fund of the drainage district thus 35 -13- LSB 5637XS (4) 90 da/ns 13/ 21
S.F. 2151 benefited. 1 3. When the board deems it necessary it , the board may order 2 the repair or reconstruct the reconstruction of an outlet of 3 any private tile line which empties into a drainage ditch of 4 any district and , or may order the repair or reconstruction of 5 any connection of a private drain tile to a district drain. 6 The board may charge the cost of repair or reconstruction to 7 the district. However, if the board determines that the repair 8 or reconstruction is required due to a failure to construct the 9 outlet or drain tile in compliance with specifications made by 10 the board under section 468.140, the board may assess the costs 11 in each case against the land served by the private tile line 12 where the repair or reconstruction was made . 13 4. a. For the purpose of this subsection , an “improvement” 14 in a drainage or levee district in which any ditch, tile drain, 15 or other facility has previously been constructed is a project 16 intended to expand, enlarge, or otherwise increase the capacity 17 of any existing ditch, drain, or other facility above that for 18 which it was designed. 19 b. (1) When the board determines that an a contemplated 20 improvement is necessary or desirable, and feasible, the board 21 shall appoint an engineer to make and order the preparation 22 of an engineer’s study and report. The engineer’s report 23 shall include the results of any surveys as seem appropriate 24 to determine the nature and extent of the improvement, and to 25 file a report showing what a description of the contemplated 26 improvement is recommended and its , the estimated construction 27 cost, which the estimated cost of improvement, the identity 28 of each parcel in the district that would benefit from the 29 contemplated improvement, the estimated benefited area in 30 each parcel, the ownership of each parcel, and the estimated 31 total size of the area in the district that would benefit 32 from the proposed improvement. The engineer’s report may be 33 amended before the board’s final action approving the proposed 34 improvement . The engineer’s report shall be filed with the 35 -14- LSB 5637XS (4) 90 da/ns 14/ 21
S.F. 2151 auditor. 1 (2) If the board determines that a contemplated improvement 2 is not to an existing facility of the district or if an 3 extension of an existing facility is primarily intended to 4 bring land into the district which is not otherwise benefited 5 by any other facilities of the district, the board shall 6 require that the contemplated improvement be pursued as 7 a new drainage district or as a new subdrainage district. 8 However, the board shall retain jurisdiction to pursue the 9 contemplated improvement under this subsection if an owner or 10 owners of land in the district that would be benefited by the 11 contemplated improvement file a petition complying with section 12 468.8 requesting the contemplated improvement and post a bond 13 complying with section 468.9 conditioned for the payment of 14 all costs and expenses incurred in the proceedings in case a 15 contemplated improvement is not approved and constructed. 16 c. Before the engineer begins work, the board shall hold an 17 informational meeting of interested landowners in the district. 18 An interested landowner includes the owner of land in the 19 district which may be included in the proposed benefited area. 20 (1) The board shall set a date for the informational meeting 21 and order the auditor to notify interested landowners of the 22 informational meeting’s location, date, and time by ordinary 23 mail. The date of the meeting shall not be less than ten days 24 after the date that the notice is mailed. 25 (2) At the informational meeting, the board shall explain 26 to interested landowners in attendance the board’s process 27 of ordering the improvement, assessing benefits of the 28 improvement, a landowner’s right to support or object to the 29 proposed improvement at a future hearing, and the landowner’s 30 right of remonstrance as provided in this subsection. The 31 board shall answer all relevant questions and consider all 32 relevant comments presented at the informational meeting, and 33 may consider changing the scope of the engineer’s study and 34 report. 35 -15- LSB 5637XS (4) 90 da/ns 15/ 21
S.F. 2151 (3) A failure to notify a landowner of an informational 1 meeting under this paragraph “c” is not a basis to challenge the 2 validity of the informational meeting or a board action. 3 d. After the engineer’s report is filed with the auditor as 4 provided in paragraph “c” , the board shall consider the report, 5 order the report to be tentatively approved, with or without 6 amendment, and order a hearing as follows: 7 c. (1) If the estimated cost of the improvement does not 8 exceed fifty thousand dollars minimum cost of improvement 9 threshold is satisfied , the board may approve the proposed 10 improvement and order the work done without conducting holding 11 a hearing on the matter. Otherwise, the board shall set a date 12 for schedule a hearing on regarding the proposed improvement. 13 This paragraph “d” does not restrict the authority of the board 14 from holding a hearing regardless of the cost of improvement in 15 the same manner as for a hearing required under this subsection 16 except that the right of remonstrance shall not be available. 17 (2) The board shall order the auditor to send a notice of a 18 hearing held under this subsection to the owners of the land 19 in the affected area as provided in the engineer’s report. 20 The notice shall state the location, date, and time of the 21 hearing and state that the board shall consider whether to 22 construct the proposed improvement and whether there shall be 23 a reclassification of benefits for the cost of the proposed 24 improvement. The notice shall be made in the same manner as 25 provided in sections 468.14 through 468.18. 26 (1) (a) The board shall provide notice to landowners in 27 the district by publication in the same manner as provided 28 in section 468.15 . However, if the estimated cost of the 29 improvement exceeds the adjusted competitive bid threshold, 30 the board shall provide notice to the landowners pursuant to 31 sections 468.14 through 468.18 . 32 (b) Notwithstanding subparagraph division (a), and in lieu 33 of publishing the notice, the board may mail a copy of the 34 notice to each address where a landowner within the district 35 -16- LSB 5637XS (4) 90 da/ns 16/ 21
S.F. 2151 resides by first class mail if the cost of mailing is less 1 than publication of the notice. The mailing shall be made 2 during the time the notice would otherwise be required to be 3 published. 4 (3) As used in this paragraph “d” , the minimum cost of 5 improvement threshold is satisfied if the estimated cost of 6 improvements for the estimated total size of the affected 7 area in the district as provided in the engineer’s report is 8 less than the estimated cost of improvement according to the 9 following schedule: 10 (a) If the estimated total size of the affected area in the 11 district is less than two thousand acres, an estimated cost of 12 improvement of thirty thousand dollars. 13 (b) If the estimated total size of the affected area in 14 the district is two thousand acres or more but less than four 15 thousand acres, an estimated cost of improvement of sixty 16 thousand dollars. 17 (c) If the estimated total size of the affected area in the 18 district is four thousand acres or more but less than eight 19 thousand acres, an estimated cost of improvement of one hundred 20 thousand dollars. 21 (d) If the estimated total size of the affected area in the 22 district is eight thousand acres or more but less than sixteen 23 thousand acres, an estimated cost of improvement of one hundred 24 fifty thousand dollars. 25 (e) If the estimated total size of the affected area in 26 the district is sixteen thousand acres or more but less than 27 thirty-two thousand acres, an estimated cost of improvement of 28 two hundred thousand dollars. 29 (f) If the estimated total size of the affected area in the 30 district is thirty-two thousand acres or more but less than 31 sixty-four thousand acres, an estimated cost of improvement of 32 two hundred fifty thousand dollars. 33 (g) If the estimated total size of the affected area in the 34 district is sixty-four thousand acres or more, an estimated 35 -17- LSB 5637XS (4) 90 da/ns 17/ 21
S.F. 2151 cost of improvement of three hundred thousand dollars. 1 (2) (4) The board shall not divide proposed improvements 2 into separate programs in order to avoid compliance with this 3 paragraph “c” subsection . 4 d. (5) At the If a hearing , if required in is to be held 5 under this paragraph “c” “d” , the board shall hear consider 6 objections to the feasibility of the proposed improvements 7 improvement and arguments for or against a reclassification 8 presented by or for any taxpayer of the district. Following 9 the hearing, the board shall determine whether to approve 10 the proposed improvement and order that the improvement it 11 deems necessary or desirable and feasible be made and its 12 construction. The board shall also determine whether there 13 should be a reclassification of benefits for the cost of the 14 improvement. If it is determined that a reclassification of 15 benefits should be made, the board shall proceed as provided 16 in section 468.38 . 17 e. If the estimated cost of the improvement exceeds 18 the adjusted competitive bid minimum cost of improvement 19 threshold, or the original cost of the district plus the cost 20 of subsequent improvements in the district, whichever amount 21 is greater, a majority of the landowners in the district 22 identified as benefiting from the improvement as provided in 23 the engineer’s report , and owning in the aggregate more than 24 seventy percent of the total land in the district benefiting 25 from the improvement , may file a written remonstrance against 26 the proposed improvement, at or before the date time set for 27 hearing on the proposed improvement as provided in paragraph 28 “c” this subsection , with the county auditor, or auditors 29 in case the district extends into more than one county. If 30 a remonstrance is filed, the board shall discontinue and 31 dismiss all further proceedings on the proposed improvements 32 improvement and charge the costs incurred to date for the 33 proposed improvements improvement to the district. 34 f. Any interested party may appeal from such orders in 35 -18- LSB 5637XS (4) 90 da/ns 18/ 21
S.F. 2151 the manner provided in this subchapter, parts 1 through 5 . 1 However, this section does not affect the procedures of section 2 468.132 covering the common outlet. 3 Sec. 19. Section 468.140, Code 2024, is amended to read as 4 follows: 5 468.140 Outlet for lateral drains —— specifications. 6 The owner of any premises assessed for the payment of the 7 costs of location and construction of any ditch, drain or 8 drain tile , or watercourse as in this subchapter, parts 1 9 through 5 , provided, shall have the right to use the same as 10 an outlet for lateral drains from the premises. The board of 11 supervisors shall make specifications covering the manner in 12 which such lateral drains shall be connected with the main 13 ditches or other laterals and be maintained, and the owner 14 shall follow such specifications in making and maintaining any 15 such connection. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 GENERAL. Under Code chapter 468, drainage or levee 20 districts are established and managed by different forms of 21 governing bodies, including a board of supervisors, joint 22 boards of supervisors governing intercounty districts, 23 and an elected board of trustees. A board is required to 24 appoint a civil engineer to establish a district and oversee 25 work projects in the district. A board may order a repair 26 to an improvement (to restore or maintain its capacity) 27 or the construction of an improvement (to expand, enlarge, 28 or otherwise increase its capacity). Usually, the work is 29 ordered by the board after a competitive bid process and 30 after a public hearing of affected landowners. In lieu of 31 a statutory dollar amount used to determine whether bids are 32 required to be let under Code chapter 468, the amount may be 33 set by the vertical infrastructure bid threshold subcommittee 34 for public improvements established within the department of 35 -19- LSB 5637XS (4) 90 da/ns 19/ 21
S.F. 2151 transportation (Code sections 314.1B and 468.3). 1 REQUIREMENTS FOR ENGINEERS. The bill provides that a 2 civil engineer appointed by a board is not required to post a 3 bond but instead must provide proof of professional liability 4 insurance in an amount required by the board. 5 COMPETITIVE BID PROCESS. The bill eliminates the vertical 6 infrastructure bid threshold used to determine when a board 7 may order work in the district without using a competitive 8 bid process. If the estimated construction cost is less than 9 $50,000, the board and a contractor selected by the board 10 may enter into a contract without a competitive bid. The 11 board must appoint an engineer or the county’s secondary roads 12 department to oversee the work. If the estimated construction 13 cost is $50,000 or more but less than $100,000, the board may 14 select two or more qualified contractors to submit competitive 15 proposals using plans, specifications, and bid forms prepared 16 by a supervising engineer. It also requires that the contract 17 provide a completion date and liquidated damages for at least 18 $100,000. The board is required to make monthly progress 19 payments to the contractor on a monthly basis and withhold 10 20 percent until completion. 21 REPAIRS AND IMPROVEMENTS. The board may authorize one 22 or more board members or trustees, watchpersons, or other 23 employees of the district to identify minor maintenance 24 needs, determine and recommend repairs, engage contractors, 25 and oversee the repair work construction, if the cost is not 26 more than $75,000. The board may also engage the county 27 engineer and the secondary road department to manage the 28 minor repairs and also larger repairs, if construction costs 29 are less than the district’s repair cost threshold but not 30 more than $150,000. The bill provides that in considering 31 a proposed repair or improvement, the board must hold an 32 informational meeting of interested landowners in the district 33 whose land is affected by the board’s action ordering a repair 34 or improvement. An informational meeting for a repair is 35 -20- LSB 5637XS (4) 90 da/ns 20/ 21
S.F. 2151 not necessary if the repair must be made due to an emergency 1 or the costs of the repair are minor. Notice is sent to 2 affected landowners by ordinary mail. A failure to notify 3 an interested landowner of the meeting does not confer any 4 legal right to challenge a board’s action. The board is not 5 required to hold a regular meeting concerning the repair or 6 improvement if, according to an engineer’s report, a minimum 7 cost threshold of the repair or improvement is satisfied. The 8 method of calculating the threshold is different for repairs 9 and improvements. In both cases, it is based on the estimated 10 total size of the affected area (calculated in acres). For a 11 proposed repair, this includes all parcels that would benefit 12 from or be assessed for the proposed repair, and in the case 13 of a proposed improvement, it includes all parcels that would 14 benefit from the proposed improvement. In any case, a schedule 15 is used in which a minimum threshold cost is assigned for each 16 size category of land. The bill also provides for cases in 17 which the board determines that a contemplated improvement 18 is not to an existing facility in the district or it is to 19 an existing facility but is primarily intended to bring land 20 into the district without benefiting other facilities in the 21 district. In such cases, the contemplated improvement must 22 be made as a new drainage district or as a new subdrainage 23 district. 24 -21- LSB 5637XS (4) 90 da/ns 21/ 21