Senate File 500 - IntroducedA Bill ForAn Act 1 relating to the establishment, repair, and improvement
2of drainage and levee districts, including by requiring
3proof of professional liability insurance by civil engineers
4and providing for rights of landowners.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2REQUIREMENTS FOR ENGINEERS
3   Section 1.  Section 468.10, subsection 1, Code 2021, is
4amended to read as follows:
   51.  The board shall at its first session thereafter, regular,
6special, or adjourned, examine the petition and if it be found
7sufficient in form and substance, shall appoint a disinterested
8and competent civil engineer who shall give bond to the county
9for the use of the proposed levee or drainage district, if it
10be established, and if not established, for the use of the
11petitioners, in amount and with sureties to be approved by
12the auditor, and conditioned for the faithful and competent
13performance of the engineer’s duties
The engineer shall
14provide the board proof of professional liability insurance
15which shall be maintained for an amount of coverage required
16by the board.

17   Sec. 2.  Section 468.33, Code 2021, is amended to read as
18follows:
   19468.33  Supervising engineer — bond insurance.
   20Upon the payment or securing of damages, the board shall
21appoint a competent civil engineer to have charge of the work
22of construction thereof, who shall be required, before entering
23upon the work to give a bond to the county for the use and
24benefit of the levee or drainage district, to be approved by
25the auditor in such sum as
, to provide to the board proof of
26professional liability insurance which shall be maintained
27for an amount of coverage required by
the board may fix,
28conditioned for the faithful discharge of the engineer’s
29duties
.
30   Sec. 3.  Section 468.203, Code 2021, is amended to read as
31follows:
   32468.203  Engineer appointed.
   33After the filing of the plan contemplated in section 468.201
34the board shall, at its first session thereafter, regular,
35special, or adjourned, appoint a disinterested and competent
-1-1civil or drainage engineer who shall give bond in an amount
2to be fixed by the board conditioned for the faithful and
3competent performance of the engineer’s duties
The engineer
4shall provide the board proof of professional liability
5insurance which shall be maintained for an amount of coverage
6required by the board.

7   Sec. 4.  Section 468.287, Code 2021, is amended to read as
8follows:
   9468.287  Supervising engineer.
   10At the time of finally establishing the district, the
11boards of the several counties, acting jointly, shall employ
12a competent civil engineer to have charge and supervision of
13the construction of the improvement and they shall fix the
14engineer’s compensation and the engineer shall, before entering
15upon said work, give a bond running to the several counties for
16the use and benefit of the district in the same amounts and of
17like tenor and effect as is provided in districts wholly within
18one county
The engineer shall provide the boards proof of
19professional liability insurance which shall be maintained for
20an amount of coverage required by the boards.
A duplicate of
21such bond proof shall be filed with the auditor of each of said
22counties.
23DIVISION II
24COMPETITIVE BIDDING
25   Sec. 5.  Section 468.3, subsection 1, Code 2021, is amended
26by striking the subsection.
27   Sec. 6.  Section 468.3, Code 2021, is amended by adding the
28following new subsections:
29   NEW SUBSECTION.  5A.  The term “construction cost” means
30the costs of the materials and labor normally provided and
31completed by a contractor under a construction contract secured
32by a competitive bid, competitive proposal, or negotiation.
33   NEW SUBSECTION.  6A.  The term “cost of repair” means the
34costs of any repair to an improvement which is subject to
35special assessment including but not limited to the same type
-2-1of costs specified in subsection 6.
2   Sec. 7.  Section 468.3, subsection 6, Code 2021, is amended
3to read as follows:
   46.  The term “cost of improvements improvement means the
5costs of any improvement which is subject to special assessment
6including, but not limited to, the costs of engineering,
7preliminary reports, property valuations, regulatory permits,
8converted wetland or other mitigation,
estimates, plans,
9specifications, notices, acquisition of land, easements,
10rights-of-way, construction, repair, connection of existing
11private tile lines encountered during construction, repairs
12or replacements or new installations of all surface water
13entry pipes and subsurface drainage outlet pipes on drainage
14district open ditches,
supervision, inspection, testing,
15notices and publication, interest during construction and for
16a reasonable period following the completion of construction,
17and may include the default fund which shall amount to not more
18than ten percent of the total cost of an improvement assessed
19against benefited property land.
20   Sec. 8.  Section 468.34, Code 2021, is amended to read as
21follows:
   22468.34  Advertisement for competitive bids.
   23The If the board provides for a competitive bid process as
24provided in section 468.35, the board
shall publish notice once
25each week for two consecutive weeks in a newspaper published
26in the county where the improvement is located, and publish
27additional advertisement and publication elsewhere as the board
28may direct. The notice shall state the time and place of
29letting the work of construction of the improvement, specifying
30the approximate amount of work to be done in each numbered
31section of the district, the time fixed for the commencement,
32and the time of the completion of the work, that bids will
33be received on the entire work and in sections or divisions
34of it, and that a bidder will be required to deposit a bid
35security with the county auditor as provided in section 468.35.
-3-1 All notices shall set the date and time that bids will be
2received and upon which the work will be let. However, when
3the estimated cost of the improvement is less than the adjusted
4competitive bid threshold, the board may let the contract for
5the construction without taking bids and without publishing
6notice.

7   Sec. 9.  Section 468.35, Code 2021, is amended to read as
8follows:
   9468.35  Bids — letting of work — competitive bid process.
   101.  The board shall award a contract for work ordered by
11the board using a competitive bid process as provided in this
12section, if any of the following apply:

   13a.  The estimated construction cost for work ordered by the
14board is one hundred thousand dollars or more under one or more
15contracts.
   16b.  The board determines that a competitive bid process is
17appropriate for the work ordered.
   182.   If awarding a contract using a competitive bid process,
19the board shall award the contract
or contracts for each
20section of the work to the lowest responsible bidder or bidders
21therefor, bids to be submitted, received, and acted upon
22separately as to the main drain and each of the laterals, and
23each settling basin, if any, exercising their own discretion as
24to letting such work as to the main drain as a whole, or as to
25each lateral as a whole, or by sections as to both main drain
26and laterals, and reserving the right to reject any and all
27bids and readvertise the letting of the work.
   282.    3.  A bid submitted under subsection 2 shall be in
29writing, specifying the portion of the work upon which the
30bid is made, and filed with the auditor. The bid shall be
31accompanied with a bid security. The bid security shall be
32in the form of a deposit of cash, a certified check on and
33certified by a bank in Iowa, a certified share draft drawn on
34a credit union in Iowa, or a bid bond with a corporate surety
35satisfactory to the board as provided in section 73A.20. The
-4-1bid security must be payable to the auditor or the auditor’s
2order at the auditor’s office in a sum equal to five percent
3of the amount of the bid. However, if the maximum limit on a
4bid security would cause a denial of funds or services from
5the federal government which would otherwise be available,
6or if the maximum limit would otherwise be inconsistent with
7the requirements of federal law, the maximum limit may be
8suspended to the extent necessary to prevent denial of federal
9funds or services or to eliminate the inconsistency with
10federal requirements. The cash, check, or share draft of an
11unsuccessful bidder shall be returned, and the bid bond of an
12unsuccessful bidder shall be canceled. The bid security of a
13successful bidder shall be maintained as a guarantee that the
14bidder will enter into a contract in accordance with the bids.
15   Sec. 10.  Section 468.36, Code 2021, is amended to read as
16follows:
   17468.36  Performance Letting of work — competitive bid process
18
bond — return of deposit.
   19A If the board awards a contract or contracts for work
20ordered by the board using a competitive bid process as
21provided in section 468.35, the
successful bidder is required
22to execute a bond with sureties approved by the auditor in
23favor of the county for the use and benefit of the levee or
24drainage district and all persons entitled to liens for labor
25or material in an amount not less than seventy-five percent of
26the contract price of the work to be done, conditioned for the
27timely, efficient, and complete performance of the contract,
28and the payment, as they become due, of all just claims for
29labor performed and material used in carrying out the contract.
30When a contract is executed and bond approved by the board, the
31cash, certified check, or certified share draft deposited with
32the bid shall be returned to the bidder.
33   Sec. 11.  Section 468.37, Code 2021, is amended to read as
34follows:
   35468.37  Contracts.
-5-
   1All Except as provided in section 468.37A, agreements
2and contracts for work or materials in constructing the
3improvements of such district shall be in writing, signed by
4the chairperson of the board of supervisors for and on behalf
5of the district and the parties who are to perform the work
6or furnish the materials specified in such contract. Such
7contract shall specify the particular work to be done or
8materials to be furnished, the time when it shall begin and
9when it shall be completed, the amount to be paid and the times
10of payment, liquidated damages for late completed work, with
11such other terms and conditions as to details necessary to a
12clear understanding of the terms thereof.
13   Sec. 12.  NEW SECTION.  468.37A  Letting of work without
14competitive bid process.
   151.  If the board does not use the competitive bid process
16as provided in section 468.35, it may order the work done and
17contract with a contractor selected by the board to do the work
18without advertising as otherwise required in section 468.34
19or requiring the execution of bond as otherwise required in
20section 468.36. The board shall not enter into a contract with
21a contractor unless the contractor provides proof of liability
22insurance acceptable to the board.
   232.  If the estimated construction cost is less than fifty
24thousand dollars, the board and the selected contractor shall
25enter into a contract which is not required to comply with
26section 468.37. The board shall appoint an engineer to oversee
27the work. However, if the governing body is a county board of
28supervisors, the board may designate the county’s secondary
29roads department to oversee the work. The board shall make
30payment from the drainage fund the full amount necessary to
31reimburse the secondary road fund for the full cost of any
32equipment and labor provided. The board shall make payment to
33the contractor on a lump sum basis if the board approves the
34completed work and receives an invoice that does not require
35correction. The requirements of sections 468.100 through
-6-1468.103 do not apply.
   23.  If the estimated construction cost is fifty thousand
3dollars or more but less than one hundred thousand dollars,
4the board may select two or more qualified contractors to
5submit competitive proposals using plans, specifications,
6and bid forms prepared by the supervising engineer appointed
7under section 468.33. The contract shall provide a contract
8completion date and provide for liquidated damages for late
9completed work. The board shall make progress payments to the
10contractor on a monthly basis, and shall retain ten percent
11of the total amount until thirty days after the board has
12concluded the project completion hearing and accepted the work
13pursuant to section 468.103. The requirements of sections
14468.100 through 468.103 apply.
15   Sec. 13.  Section 468.100, subsection 2, Code 2021, is
16amended to read as follows:
   172.  a.  All of the provisions of this section shall, when
18applicable, apply to repair work and improvement work in the
19same force and effect as to original construction.
   20b.  This section does not apply if the estimated construction
21cost is less than fifty thousand dollars as provided in section
22468.37A.
23   Sec. 14.  Section 468.101, Code 2021, is amended to read as
24follows:
   25468.101  Completion of work — report — notice.
   261.  When the work to be done under a contract is completed
27to the satisfaction of the engineer in charge of construction,
28the engineer shall report and certify that the contract is
29completed to the board. Upon receipt of the report, the board
30shall set a day to consider the report and shall give notice
31of the time and purpose of the meeting by ordinary mail to the
32owners of the land on which the work was done, and to the owners
33of each tract of land or lot within the district by publication
34in a newspaper of general circulation in the county. The
35publication is not required to name the owners of any tract of
-7-1land or lot within the district. The date for considering the
2report by the board shall be not less than ten days after the
3date of mailing, or publication, whichever is later.
   42.  This section does not apply if the estimated construction
5cost is less than fifty thousand dollars as provided in section
6468.37A.
7   Sec. 15.  Section 468.102, Code 2021, is amended to read as
8follows:
   9468.102  Objections.
   101.  Any party interested in the said district or the
11improvement thereof may file objections to said report
12and submit any evidence tending to show said report should
13not be accepted. Any interested party having a claim for
14damages arising out of the construction of the improvement
15or repair shall file said claim with the board at or before
16the time fixed for hearing on the completion of the contract,
17which claim shall not include any claim for land taken for
18right-of-way or for severance of land.
   192.  This section does not apply if the estimated construction
20cost is less than fifty thousand dollars as provided in section
21468.37A.
22   Sec. 16.  Section 468.103, Code 2021, is amended by adding
23the following new subsection:
24   NEW SUBSECTION.  3.  This section does not apply if the
25construction cost is less than fifty thousand dollars as
26provided in section 468.37A.
27   Sec. 17.  REPEAL.  Section 468.66, Code 2021, is repealed.
28DIVISION III
29REPAIRS AND IMPROVEMENTS
30   Sec. 18.  Section 468.126, subsections 1, 2, 3, and 4, Code
312021, are amended to read as follows:
   321.  When any levee or drainage district has been established
33and the improvement constructed, the improvement shall be at
34all times under the supervision of the board of supervisors
35except as otherwise provided for control and management by a
-8-1board of trustees and the. A board shall keep the improvement
2in repair as provided in this section.
   3a.  The board at any time on its own motion, without notice,
4may order done whatever is necessary to restore or maintain a
5drainage or levee
 an improvement in its original efficiency
6or capacity, and for that purpose may remove silt and debris,
7repair any damaged structures, remove weeds and other vegetable
8growth, and whatever else may be needed to restore or maintain
9such efficiency or capacity or to prolong its useful life.
   10b.  In considering a proposed repair to an improvement,
11the board shall hold an informational meeting of interested
12landowners in the district. An interested landowner includes
13the owner of land which may be included in the proposed
14benefited area or the proposed area which otherwise may be
15subject to special assessment for the proposed repair.
   16(1)  The board shall not appoint an engineer to prepare
17an engineer’s report until after it holds the informational
18meeting. However, the board may appoint an engineer to attend
19the informational meeting if it determines that the engineer’s
20involvement may better assist persons in presenting information
21or the board in making a decision regarding the proposed
22repair.
   23(2)  The board shall set a date for the informational meeting
24and order the auditor to notify interested landowners of the
25informational meeting’s location, date, and time by ordinary
26mail. The date of the meeting shall not be less than ten days
27after the date that the meeting notice is mailed.
   28(3)  At the informational meeting, the board shall explain
29to interested landowners in attendance the board’s process of
30ordering the repair and paying for the cost of repair. The
31board shall answer all relevant questions and consider all
32relevant comments presented at the informational meeting, and
33may consider changing the scope of the engineer’s study and
34report.
   35(4)  (a)  This paragraph “b” does not apply if the board
-9-1determines that a repair must be made on an emergency basis or
2that the estimated cost of repair is minor.
   3(b)  A failure to notify an interested landowner of an
4informational meeting under this paragraph “b” is not a basis to
5challenge the validity of the informational meeting or a board
6action.
   7b.    c.  The After the informational meeting is held, or if
8the board is not required to hold an informational meeting, as
9provided in paragraph “b”, the
board may at any time obtain
10
 appoint an engineer and enter an order for the preparation
11of
an engineer’s report regarding the most feasible means of
12repairing a drainage or levee an improvement and the probable
13cost of making the repair. The engineer’s report shall provide
14the estimated cost of repair, the identity of each parcel
15in the district to be assessed for the proposed repair, the
16identity of eligible parcels in the district that would benefit
17from the proposed repair, and the estimated total size of the
18affected area in the district that would benefit from the or be
19assessed for the proposed repair. The engineer’s report shall
20be filed with the auditor before the board’s action to approve
21the report.

   22(1)  If the engineer advises, or the board otherwise
23 concludes that permanent restoration of a damaged structure
24is not feasible at the time, the board may order temporary
25construction it deems necessary to the continued functioning of
26the improvement. If in maintaining and repairing tile lines
27the board finds from an engineer’s report concludes it is more
28economical to construct a new line than to repair the existing
29line, the new line may be considered to be a repair.
   30c.   (2)   (a)  If the estimated cost of the repair does not
31exceed fifty thousand dollars
 minimum cost of repair threshold
32is satisfied
, the board may approve the proposed repair and
33 order the work done without conducting holding a hearing on the
34matter. This paragraph “c” does not restrict the authority
35of the board from holding a hearing regardless of the cost of
-10-1repair in the same manner as a hearing required under this
2section.

   3(b)  Otherwise, If the board holds a hearing regarding the
4proposed repair, the
board shall set a schedule the hearing and
5order the auditor to send a notice of the hearing to the owners
6of the parcels proposed to be subject to a special assessment
7for the proposed repair as presented in the engineer’s report.
8The notice shall state the location,
date for a, and time of
9the
hearing and provide notice of the hearing to landowners in
10the district by publication in the same manner as
. The notice
11shall be made as
provided in section 468.15 sections 468.14
12through 468.18
. However, if the estimated cost of the repair
13exceeds the adjusted competitive bid threshold, the board shall
14provide notice to the landowners pursuant to sections 468.14
15through 468.18.

   16(c)  As used in this subparagraph (2), the minimum cost of
17repair threshold is satisfied if the estimated cost of repair
18for the estimated total size of the affected area as provided
19in the engineer’s report provided in this paragraph “c” is less
20than the estimated cost of repair according to the following
21schedule:
   22(i)  If the estimated total size of the affected area in the
23district is less than two thousand acres, an estimated cost of
24repair of sixty thousand dollars.
   25(ii)  If the estimated total size of the affected area in
26the district is two thousand acres or more but less than four
27thousand acres, an estimated cost of repair of one hundred
28twenty thousand dollars.
   29(iii)  If the estimated total size of the affected area in
30the district is four thousand acres or more but less than eight
31thousand acres, an estimated cost of repair of two hundred
32thousand dollars.
   33(iv)  If the estimated total size of the affected area in the
34district is eight thousand acres or more but less than sixteen
35thousand acres, an estimated cost of repair of three hundred
-11-1thousand dollars.
   2(v)  If the estimated total size of the affected area in
3the district is sixteen thousand acres or more but less than
4thirty-two thousand acres, an estimated cost of repair of four
5hundred thousand dollars.
   6(vi)  If the estimated total size of the affected area in
7the district is thirty-two thousand acres or more but less than
8sixty-four thousand acres, an estimated cost of repair of five
9hundred thousand dollars.
   10(vii)  If the estimated total size of the affected area in
11the district is sixty-four thousand acres or more, an estimated
12cost of the repair of six hundred thousand dollars.
   13(3)  The board shall not divide a proposed repair into
14separate programs in order to avoid the notice and hearing
15requirements of this paragraph “c”.
   16d.    (4)  If a hearing is required to be held under this
17 paragraph “c”, the board shall appoint an engineer and order
18an engineer’s report or a report from the soil and water
19conservation district conservationist regarding the matter to
20be presented at the hearing. The board may waive the report
21requirement if a prior report on the repair exists and that
22report is less than ten years old. However, the engineer
23shall review and amend the report as necessary to update
24the estimated cost of repair, identify the affected area in
25the district that would benefit from or be assessed for the
26proposed repair, and identify the estimated total size of the
27affected area.
At the hearing, the board shall hear consider
28facts and recommendations presented at the hearing, including

29 objections to the feasibility of making the proposed repair.
 30At any time prior to the final adoption of the plan, the board
31may order the plan to be amended.

   32e.    d.  Following a the conclusion of the hearing, if
33required
 provided in paragraph “c”, the board shall determine
34whether the proposed repair is necessary or desirable, and
35feasible. If the board determines the proposed repair is
-12-1necessary or desirable, and feasible, it shall order that the
2proposed repair be made.

   3f.    e.  Any interested party has the right of appeal from
4such orders an order of the board under this subsection in the
5manner provided in this subchapter, parts 1 through 5.
   6g.    f.  The right of remonstrance does not apply to a repair
7as provided in this section.
   82.  In the case of a repair, or the eradication of brush or
9weeds along the open ditches, not in excess of the adjusted
10competitive bid threshold
 fifty thousand dollars, where the
11board finds that a saving to the district will result, the
12board may cause the repairs or eradication to be done by
13secondary road fund equipment, or weed fund equipment, and
14labor of the county and then reimburse the secondary road fund
15or the weed fund from the fund of the drainage district thus
16benefited.
   173.  When the board deems it necessary it, the board may order
18the
repair or reconstruct the reconstruction of an outlet of
19any private tile line which empties into a drainage ditch of
20any district and, or may order the repair or reconstruction of
21any connection of a private drain tile to a district drain.
22The board may charge the cost of repair or reconstruction to
23the district. However, if the board determines that the repair
24or reconstruction is required due to a failure to construct the
25outlet or drain tile in compliance with specifications made by
26the board under section 468.140, the board may
assess the costs
27in each case against the land served by the private tile line
28
 where the repair or reconstruction was made.
   294.  a.  For the purpose of this subsection, an “improvement”
30in a drainage or levee district in which any ditch, tile drain,
31or other facility has previously been constructed is a project
32intended to expand, enlarge, or otherwise increase the capacity
33of any existing ditch, drain, or other facility above that for
34which it was designed.
   35b.  (1)  When the board determines that an a contemplated
-13-1 improvement is necessary or desirable, and feasible, the board
2shall appoint an engineer to make and order the preparation
3of an engineer’s study and report. The engineer’s report
4shall include the results of any
surveys as seem appropriate
5to determine the nature and extent of the improvement, and to
6file a report showing what
 a description of the contemplated
7 improvement is recommended and its, the estimated construction
8 cost, which the estimated cost of improvement, the identity
9of each parcel in the district that would benefit from the
10contemplated improvement, the estimated benefited area in
11each parcel, the ownership of each parcel and the estimated
12total size of the area in the district that would benefit
13from the proposed improvement. The engineer’s
report may be
14amended before the board’s final action approving the proposed
15improvement
The engineer’s report shall be filed with the
16auditor.

   17(2)  If the board determines that a contemplated improvement
18is not to an existing facility of the district or if an
19extension of an existing facility is primarily intended to
20bring land into the district which is not otherwise benefited
21by any other facilities of the district, the board shall
22require that the contemplated improvement be pursued as
23a new drainage district or as a new subdrainage district.
24However, the board shall retain jurisdiction to pursue the
25contemplated improvement under this subsection if an owner or
26owners of land in the district that would be benefited by the
27contemplated improvement file a petition complying with section
28468.8 requesting the contemplated improvement and post a bond
29complying with section 468.9 conditioned for the payment of
30all costs and expenses incurred in the proceedings in case a
31contemplated improvement is not approved and constructed.
   32c.  Before the engineer begins work, the board shall hold an
33informational meeting of interested landowners in the district.
34An interested landowner includes the owner of land in the
35district which may be included in the proposed benefited area.
-14-
   1(1)  The board shall set a date for the informational meeting
2and order the auditor to notify interested landowners of the
3informational meeting’s location, date, and time by ordinary
4mail. The date of the meeting shall not be less than ten days
5after the date that the notice is mailed.
   6(2)  At the informational meeting, the board shall explain
7to interested landowners in attendance the board’s process
8of ordering the improvement, assessing benefits of the
9improvement, a landowner’s right to support or object to the
10proposed improvement at a future hearing, and the landowner’s
11right of remonstrance as provided in this subsection. The
12board shall answer all relevant questions and consider all
13relevant comments presented at the informational meeting, and
14may consider changing the scope of the engineer’s study and
15report.
   16(3)  A failure to notify a landowner of an informational
17meeting under this paragraph “c” is not a basis to challenge the
18validity of the informational meeting or a board action.
   19d.  After the engineer’s report is filed with the auditor as
20provided in paragraph “c”, the board shall consider the report,
21order the report to be tentatively approved, with or without
22amendment, and order a hearing as follows:
   23c.    (1)  If the estimated cost of the improvement does not
24exceed fifty thousand dollars
 minimum cost of improvement
25threshold is satisfied
, the board may approve the proposed
26improvement and
order the work done without conducting holding
27 a hearing on the matter. Otherwise, the board shall set a date
28for
 schedule a hearing on regarding the proposed improvement.
29This paragraph “d” does not restrict the authority of the board
30from holding a hearing regardless of the cost of improvement in
31the same manner as for a hearing required under this subsection
32except that the right of remonstrance shall not be available.

   33(2)   The board shall order the auditor to send a notice of a
34hearing held under this subsection to the owners of the land
35in the affected area as provided in the engineer’s report.
-15-1The notice shall state the location, date, and time of the
2hearing and state that the board shall consider
whether to
3construct the proposed improvement and whether there shall be
4a reclassification of benefits for the cost of the proposed
5 improvement. The notice shall be made in the same manner as
6provided in sections 468.14 through 468.18.

   7(1)  (a)  The board shall provide notice to landowners in
8the district by publication in the same manner as provided
9in section 468.15. However, if the estimated cost of the
10improvement exceeds the adjusted competitive bid threshold,
11the board shall provide notice to the landowners pursuant to
12sections 468.14 through 468.18.
   13(b)  Notwithstanding subparagraph division (a), and in lieu
14of publishing the notice, the board may mail a copy of the
15notice to each address where a landowner within the district
16resides by first class mail if the cost of mailing is less
17than publication of the notice. The mailing shall be made
18during the time the notice would otherwise be required to be
19published.
   20(3)  As used in this paragraph “d”, the minimum cost of
21improvement threshold is satisfied if the estimated cost of
22improvements for the estimated total size of the affected
23area in the district as provided in the engineer’s report is
24less than the estimated cost of improvement according to the
25following schedule:
   26(a)  If the estimated total size of the affected area in the
27district is less than two thousand acres, an estimated cost of
28improvement of thirty thousand dollars.
   29(b)  If the estimated total size of the affected area in
30the district is two thousand acres or more but less than four
31thousand acres, an estimated cost of improvement of sixty
32thousand dollars.
   33(c)  If the estimated total size of the affected area in the
34district is four thousand acres or more but less than eight
35thousand acres, an estimated cost of improvement of one hundred
-16-1thousand dollars.
   2(d)  If the estimated total size of the affected area in the
3district is eight thousand acres or more but less than sixteen
4thousand acres, an estimated cost of improvement of one hundred
5fifty thousand dollars.
   6(e)  If the estimated total size of the affected area in
7the district is sixteen thousand acres or more but less than
8thirty-two thousand acres, an estimated cost of improvement of
9two hundred thousand dollars.
   10(f)  If the estimated total size of the affected area in the
11district is thirty-two thousand acres or more but less than
12sixty-four thousand acres, an estimated cost of improvement of
13two hundred fifty thousand dollars.
   14(g)  If the estimated total size of the affected area in the
15district is sixty-four thousand acres or more, an estimated
16cost of improvement of three hundred thousand dollars.
   17(2)    (4)  The board shall not divide proposed improvements
18into separate programs in order to avoid compliance with this
19paragraph “c” subsection.
   20d.    (5)  At the If a hearing, if required in is to be held
21under this
paragraph “c” “d”, the board shall hear consider
22 objections to the feasibility of the proposed improvements
23
 improvement and arguments for or against a reclassification
24presented by or for any taxpayer of the district. Following
25the hearing, the board shall determine whether to approve
26the proposed improvement and
order that the improvement it
27deems necessary or desirable and feasible be made and
 its
28construction. The board
shall also determine whether there
29should be a reclassification of benefits for the cost of the
30improvement. If it is determined that a reclassification of
31benefits should be made, the board shall proceed as provided
32in section 468.38.
   33e.  If the estimated cost of the improvement exceeds
34the adjusted competitive bid minimum cost of improvement
35 threshold, or the original cost of the district plus the cost
-17-1of subsequent improvements in the district, whichever amount
2is greater,
a majority of the landowners in the district
3identified as benefiting from the improvement as provided in
4the engineer’s report
and owning in the aggregate more than
5seventy percent of the total land in the district benefiting
6from the improvement
, may file a written remonstrance against
7the proposed improvement, at or before the date time set for
8hearing on the proposed improvement as provided in paragraph
9“c”
 this subsection, with the county auditor, or auditors
10in case the district extends into more than one county. If
11a remonstrance is filed, the board shall discontinue and
12dismiss all further proceedings on the proposed improvements
13
 improvement and charge the costs incurred to date for the
14proposed improvements improvement to the district.
   15f.  Any interested party may appeal from such orders in
16the manner provided in this subchapter, parts 1 through 5.
17However, this section does not affect the procedures of section
18468.132 covering the common outlet.
19   Sec. 19.  Section 468.140, Code 2021, is amended to read as
20follows:
   21468.140  Outlet for lateral drains — specifications.
   22The owner of any premises assessed for the payment of the
23costs of location and construction of any ditch, drain or
24drain tile
, or watercourse as in this subchapter, parts 1
25through 5, provided, shall have the right to use the same as
26an outlet for lateral drains from the premises. The board of
27supervisors shall make specifications covering the manner in
28which such lateral drains shall be connected with the main
29ditches or other laterals and be maintained, and the owner
30shall follow such specifications in making and maintaining any
31such connection.
32EXPLANATION
33The inclusion of this explanation does not constitute agreement with
34the explanation’s substance by the members of the general assembly.
   35GENERAL. Under Code chapter 468, drainage or levee
-18-1districts are established and managed by different forms of
2governing bodies, including a board of supervisors, joint
3boards of supervisors governing intercounty districts,
4and an elected board of trustees. A board is required to
5appoint a civil engineer to establish a district and oversee
6work projects in the district. A board may order a repair
7to an improvement (to restore or maintain its capacity)
8or the construction of an improvement (to expand, enlarge,
9or otherwise increase its capacity). Usually, the work is
10ordered by the board after a competitive bid process and
11after a public hearing of affected landowners. In lieu of
12a statutory dollar amount used to determine whether bids are
13required to be let under Code chapter 468, the amount may be
14set by the vertical infrastructure bid threshold subcommittee
15for public improvements established within the department of
16transportation (Code sections 314.1B and 468.3).
   17REQUIREMENTS FOR ENGINEERS. The bill provides that a
18civil engineer appointed by a board is not required to post a
19bond but instead must provide proof of professional liability
20insurance in an amount required by the board.
   21COMPETITIVE BID PROCESS. The bill eliminates the vertical
22infrastructure bid threshold used to determine when a board
23may order work in the district without using a competitive
24bid process. If the estimated construction cost is less than
25$50,000, the board and a contractor selected by the board
26may enter into a contract without a competitive bid. The
27board must appoint an engineer or the county’s secondary roads
28department to oversee the work. If the estimated construction
29cost is $50,000 or more but less than $100,000, the board may
30select two or more qualified contractors to submit competitive
31proposals using plans, specifications, and bid forms prepared
32by a supervising engineer. It also requires that the contract
33provide a completion date and liquidated damages for at least
34$100,000. The board is required to make monthly progress
35payments to the contractor on a monthly basis and withhold 10
-19-1percent until completion.
   2REPAIRS AND IMPROVEMENTS. The bill provides that in
3considering a proposed repair or improvement, the board must
4hold an informational meeting of interested landowners in
5the district whose land is affected by the board’s action
6ordering a repair or improvement. An informational meeting
7for a repair is not necessary if the repair must be made due
8to an emergency or the costs of the repair are minor. Notice
9is sent to affected landowners by ordinary mail. A failure to
10notify an interested landowner of the meeting does not confer
11any legal right to challenge a board’s action. The board is
12not required to hold a regular meeting concerning the repair or
13improvement if, according to an engineer’s report, a minimum
14cost threshold of the repair or improvement is satisfied. The
15method of calculating the threshold is different for repairs
16and improvements. In both cases, it is based on the estimated
17total size of the affected area (calculated in acres). For a
18proposed repair, this includes all parcels that would benefit
19from or be assessed for the proposed repair, and in the case
20of a proposed improvement, it includes all parcels that would
21benefit from the proposed improvement. In any case, a schedule
22is used in which a minimum threshold cost is assigned for each
23size category of land. The bill also provides for cases in
24which the board determines that a contemplated improvement
25is not to an existing facility in the district or it is to
26an existing facility but is primarily intended to bring land
27into the district without benefiting other facilities in the
28district. In such cases, the contemplated improvement must
29be made as a new drainage district or as a new subdrainage
30district.
-20-
da/ns