<a id="pl.1.3"></a><var>1.3</var>requiring use of alternative bidding for competing paving materials;amending <br/>
<a id="pl.1.4"></a><var>1.4</var>Minnesota Statutes 2008, sections 161.32, by adding a subdivision; 174.185.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. Minnesota Statutes 2008, section 161.32, is amended by adding a <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision to read:<br/>
<a id="pl.1.8"></a><var>1.8</var>    Subd. 8. <b>Alternative bidding; paving materials.</b> (a) For purposes of this <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivision, the terms defined in section 174.185, subdivision 1, have the meanings given <br/>
<a id="pl.1.10"></a><var>1.10</var>them.<br/>
<a id="pl.1.11"></a><var>1.11</var>(b) For all contracts for an applicable project entered into on or after January 31, <br/>
<a id="pl.1.12"></a><var>1.12</var>2011, the commissioner shall use the standard for life-cycle cost analysis developed under <br/>
<a id="pl.1.13"></a><var>1.13</var>section 174.185, subdivision 1a, as the basis for alternative bidding in which bidders may <br/>
<a id="pl.1.14"></a><var>1.14</var>select alternative project designs that use alternative paving materials.<br/>
<a id="pl.1.15"></a><var>1.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.16"></a><var>1.16</var>    Sec. 2. Minnesota Statutes 2008, section 174.185, is amended to read:<br/>
<a id="pl.1.17"></a><var>1.17</var><b>174.185 PAVEMENT LIFE-CYCLE COST ANALYSIS. </b><br/>
<a id="pl.1.18"></a><var>1.18</var>    Subdivision 1.  <b>Definitions.</b> For the purposes of this section, the following <br/>
<a id="pl.1.19"></a><var>1.19</var>definitions apply. <br/>
<a id="pl.1.20"></a><var>1.20</var>    (a) "Applicable project" means any suitable trunk highway project in the statewide <br/>
<a id="pl.1.21"></a><var>1.21</var>transportation improvement program categorized for construction, reconstruction, <br/>
<a id="pl.1.22"></a><var>1.22</var>resurfacing, or reconditioning. Applicable project does not include (1) overlays; (2) on <br/>
<a id="pl.1.23"></a><var>1.23</var>a two-lane road, a main-line project in which there is less than two miles of length of <br/>
<a id="pl.2.1"></a><var>2.1</var>roadway within the construction limits; and (3) on a multilane road, a main-line project in <br/>
<a id="pl.2.2"></a><var>2.2</var>which there is less than 30,000 square yards of paving within the construction limits.<br/>
<a id="pl.2.3"></a><var>2.3</var>(b) "Life-cycle cost" is the sum of the cost of the initial pavement project and <br/>
<a id="pl.2.4"></a><var>2.4</var>all anticipated costs for maintenance, repair, and resurfacing over the life of the <br/>
<a id="pl.2.5"></a><var>2.5</var>pavement. Anticipated costs must be based on Minnesota's actual or reasonably projected <br/>
<a id="pl.2.6"></a><var>2.6</var>maintenance, repair, and resurfacing schedules, and costs determined by the Department <br/>
<a id="pl.2.7"></a><var>2.7</var>of Transportation district personnel based upon recently awarded local projects and <br/>
<a id="pl.2.8"></a><var>2.8</var>experience with local material costs. <br/>
<a id="pl.2.9"></a><var>2.9</var>    (b) (c) "Life-cycle cost analysis" is a comparison of life-cycle costs among <br/>
<a id="pl.2.10"></a><var>2.10</var>competing paving materials using equal design lives and equal comparison periods. <br/>
<a id="pl.2.11"></a><var>2.11</var>    Subd. 1a. <b>Uniform standard.</b>  By January 15, 2011, the commissioner shall develop <br/>
<a id="pl.2.12"></a><var>2.12</var>a statewide uniform standard for life-cycle cost analysis based on the net present value <br/>
<a id="pl.2.13"></a><var>2.13</var>method of comparative analysis of alternate paving materials from the Federal Highway <br/>
<a id="pl.2.14"></a><var>2.14</var>Administration, United States Department of Transportation.<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 2.  <b>Required analysis.</b> For each applicable project in the reconditioning, <br/>
<a id="pl.2.16"></a><var>2.16</var>resurfacing, and road repair funding categories, the commissioner shall perform a <br/>
<a id="pl.2.17"></a><var>2.17</var>life-cycle cost analysis and shall document the lowest life-cycle costs and all alternatives <br/>
<a id="pl.2.18"></a><var>2.18</var>considered. The commissioner shall document the chosen pavement strategy and, if the <br/>
<a id="pl.2.19"></a><var>2.19</var>lowest life cycle is not selected, document the justification for the chosen strategy. A <br/>
<a id="pl.2.20"></a><var>2.20</var>life-cycle cost analysis is required for projects to be constructed after July 1 January 31, <br/>
<a id="pl.2.21"></a><var>2.21</var>2011. For projects to be constructed prior to July before February 1, 2011, when feasible, <br/>
<a id="pl.2.22"></a><var>2.22</var>the department will use its best efforts to perform life-cycle cost analyses. <br/>
<a id="pl.2.23"></a><var>2.23</var>    Subd. 3.  <b>Report.</b> By January 15, 2012, and annually by January 15 thereafter, the <br/>
<a id="pl.2.24"></a><var>2.24</var>commissioner shall report annually to the chairs and ranking minority members of the <br/>
<a id="pl.2.25"></a><var>2.25</var>senate and house of representatives committees with jurisdiction over transportation <br/>
<a id="pl.2.26"></a><var>2.26</var>finance beginning on January 1, 2012, on:<br/>
<a id="pl.2.27"></a><var>2.27</var>(1) the results of the analyses required in subdivision 2; and<br/>
<a id="pl.2.28"></a><var>2.28</var>(2) the results of alternative bidding under section 161.32, subdivision 8, including a <br/>
<a id="pl.2.29"></a><var>2.29</var>listing of projects awarded using alternative bidding and projects identified as unsuitable <br/>
<a id="pl.2.30"></a><var>2.30</var>for alternative bidding. <br/>
<a id="pl.2.31"></a><var>2.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>