1.1                          A bill for an act 
  1.2             relating to local government; authorizing 
  1.3             municipalities to provide for contract bid 
  1.4             specifications, design, and construction standards; 
  1.5             amending Minnesota Statutes 1996, section 471.345, by 
  1.6             adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 471.345, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 2a.  [AUTHORIZATION OF BID SPECIFICATIONS, DESIGN, 
  1.11  AND CONSTRUCTION STANDARDS.] (a) Notwithstanding the provisions 
  1.12  of subdivisions 2 to 14 and sections 412.491 to 412.531, 
  1.13  429.041, 471.35, or other law to the contrary, a municipality 
  1.14  may for projects with an estimated construction cost of 
  1.15  $2,000,000 or less:  
  1.16     (1) prepare specifications that may be used to advertise 
  1.17  for proposals and award contracts for designing and constructing 
  1.18  public facilities and equipment, including public buildings and 
  1.19  playground equipment; and 
  1.20     (2) employ qualified persons, firms, or corporations, 
  1.21  however organized, to perform all or part of the functions of 
  1.22  architect, engineer, construction manager, or contractor for 
  1.23  both design and construction of all or part of a project.  
  1.24     (b) Contractors shall be selected through a request for 
  1.25  proposals or request for qualifications process that evaluates 
  1.26  the proposals based on design, cost, quality, and other 
  2.1   selection criteria specified by the municipality in its requests 
  2.2   for proposals or qualifications.  Notice of requests for 
  2.3   proposals must be advertised in the same manner as bids 
  2.4   solicited under subdivisions 2 to 14 and sections 412.491 to 
  2.5   412.531, 429.041, and 471.35.  The municipality may limit its 
  2.6   review of proposals to those submitted by persons, firms, or 
  2.7   corporations that the municipality determines to possess 
  2.8   sufficient expertise to perform the intended functions, provided 
  2.9   that such limitation shall not reduce the number of potential 
  2.10  respondents to fewer than three.  A person, firm, or corporation 
  2.11  selected shall certify, before the contracts are finally signed, 
  2.12  a construction price and completion date to the municipality.  
  2.13  It shall post a bond in an amount at least equal to 100 percent 
  2.14  of the certified price, to cover costs that may be incurred over 
  2.15  and above the certified price, including but not limited to 
  2.16  costs incurred by the municipality or loss of revenues resulting 
  2.17  from incomplete construction on the completion date.  The 
  2.18  municipality shall secure surety bonds as required in section 
  2.19  574.26, securing payment of just claims in connection with 
  2.20  public work undertaken by it.  Persons entitled to the 
  2.21  protection of the bonds may enforce them as provided in sections 
  2.22  574.28 to 574.32, but are not entitled to a lien on any property 
  2.23  of the municipality under sections 514.01 to 514.16. 
  2.24     (c) Contractors selected in accordance with this 
  2.25  subdivision shall be, employ or have as a partner, member, 
  2.26  co-venturer or subcontractor, persons licensed and registered 
  2.27  under chapter 326 to provide the services required to complete 
  2.28  the project. 
  2.29     (d) A citizen advisory board, separate from a planning 
  2.30  commission, appointed by the governing body of the municipality 
  2.31  shall review the request for proposals under this subdivision 
  2.32  and make recommendations for the selection of a contractor.  The 
  2.33  board shall have at least three members and, if practical, one 
  2.34  member must be an architect, engineer, landscape architect, land 
  2.35  surveyor, geoscientist, or interior designer licensed to 
  2.36  practice in Minnesota.  Final selection of the contractor and 
  3.1   approval of the design or project must be made by the governing 
  3.2   body of the municipality. 
  3.3      Sec. 2.  [EFFECTIVE DATE.] 
  3.4      Section 1 is effective the day following final enactment.