HF 1975

1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 05/09/2018 02:51pm

A bill for an act
relating to municipal contracting; narrowing a bidding exception for certain water
tank service contracts; amending Minnesota Statutes 2016, section 471.345,
subdivision 5b.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 471.345, subdivision 5b, is amended to read:

Subd. 5b.

Water tank service contracts.

(a) A municipality may, by direct negotiation
or through the solicitation of requests for proposals, enter into a multiyear professional
service contract for the engineering, repair, and maintenance of a water storage tank and
appurtenant facilities owned, controlled, or operated by the municipality, if the contract
contains:

(1) a provision that the municipality is not required to make total payments in a single
year that exceed the water utility charges received by the municipality for that year;

(2) a provision requiring that the work performed be done under the review of a
professional engineer licensed in the state of Minnesota attesting that the work will be
performed in compliance with all applicable codes and engineering standards; and

(3) a provision that if, at the commencement of the contract, the water tank or appurtenant
facilities require engineering, repair, or service in order to bring the water tank or facilities
into compliance with federal, state, or local requirements, the party contracting with the
municipality is responsible for providing the engineering, repair, or service. The costs to
bring the water tank or facilities into compliance must be itemized separately and charged
to the municipality in payments spread over a period of not less than three years from the
commencement of the contract.

(b) If the cost of a contract for the sale or purchase of supplies, materials, equipment or
the rental thereof, or the construction, alteration, repair, or maintenance of real or personal
property entered into under this subdivision is estimated to meet the costs specified under
subdivisions 3 and 3a, paragraph (a) applies but the municipality must use the procurement
methods specified in subdivision 3 or 3a to contract for that portion of the work.

EFFECTIVE DATE.

This section is effective September 1, 2018, and applies to
contracts entered into on or after that date.