SF 2764

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 09/27/2016 03:43pm

A bill for an act
relating to local government; Hennepin County; amending sections related to
central purchasing and energy forward pricing; establishing job order contracting
authority; amending Minnesota Statutes 2014, sections 383B.142; 383B.1588,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 383B.

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

Section 1.

Minnesota Statutes 2014, section 383B.142, is amended to read:

383B.142 PROCEDURE.

Subdivision 1.

Delegation of authority.

The county board may by resolution
delegate the powers and duties enumerated in sections 383B.141 to deleted text begin 383B.151 deleted text end new text begin 383B.1511 new text end ,
and those powers and duties necessary to the implementation of the purposes of central
purchasing specifying the nature, scope and extent of the delegation. The authority and
responsibility subject to delegation shall include, but not be limited to the following:

(a) purchasing and contracting for all goods, materials, supplies, equipment and
contracted services, as provided in section 383B.143;

(b) preparation, review, modification and approval of all plans and specifications for
goods, materials, supplies, equipment and contracted services;

(c) the transfer of any goods, materials, supplies, equipment or contracted services to
or between departments, boards, commissions and agencies;

(d) selling or otherwise disposing of goods, materials, supplies, equipment and
contracted services which are unusable or no longer required; and

(e) periodically reviewing and requiring department heads to supply necessary data
concerning inventories and surpluses and monitoring compliance by department heads
with purchasing laws, rules, regulations and procedures.

Subd. 2.

Administrator's duties.

Notwithstanding the provisions of section
373.02, the county board may delegate its purchasing powers and duties to the county
administrator. The county administrator, wherever referred to in sections 383B.141 to
deleted text begin 383B.151 deleted text end new text begin 383B.1511 new text end , may designate and delegate a purchasing manager or other person
to perform the tasks empowered or assigned to the county administrator. Any purchase in
excess of $3,500 shall require the signature of the county administrator or designee.

Sec. 2.

new text begin [383B.1511] JOB ORDER CONTRACTING.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) In this section, the definitions in this subdivision
apply.
new text end

new text begin (b) "Job order contracting" means a project delivery method that requests a limited
number of bids from a list of qualified contractors, selected from a registry of qualified
contractors who have been prescreened and who have entered into master contracts with
the county, as provided in this section.
new text end

new text begin (c) "Project" means an undertaking by the county to construct, alter, maintain, repair,
or enlarge a building, structure, road, or bridge, or make other improvements.
new text end

new text begin (d) "Request for qualifications" means the document or publication soliciting
qualifications for a job order contracting contract.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin Notwithstanding any law to the contrary, the county may utilize
job order contracting for projects that do not exceed a construction cost of $250,000.
new text end

new text begin Subd. 3. new text end

new text begin Job order contracting request for qualifications. new text end

new text begin (a) The county is
authorized to issue a request for qualifications that includes the criteria that will be
used for the projects, provided that these criteria (1) do not unduly restrict competition
or impose conditions beyond reasonable requirements, in order to ensure maximum
participation of all qualified contractors, and (2) do not relate to the collective bargaining
status of the contractor.
new text end

new text begin (b) The request for qualifications must be publicized in a manner designated by the
county that ensures open and unrestricted access for any potential responder. To the extent
practical, this must include posting on a county Web site.
new text end

new text begin Subd. 4. new text end

new text begin Qualified contractors. new text end

new text begin (a) The county shall review the responses to the
request for qualifications and determine each proposer's ability to enter into the master
contract that will be utilized for the projects. The county shall establish a list of qualified
contractors based on the proposers' ability to enter into a master contract as described
in the request for qualifications.
new text end

new text begin (b) The county may establish a reasonable limit to the number of contractors on the
registry of qualified contractors, based on the reasonable needs of the county. The county
may reserve up to 75 percent of the registry for certified small business enterprises that
may include minority-owned business enterprises, women-owned business enterprises,
and veteran-owned businesses. The remaining 25 percent of the registry may include
qualified businesses of any size or ownership.
new text end

new text begin (c) The county shall establish procedures to allow firms to submit qualifications at
least every 24 months to allow placement on the list of contractors qualified to enter
into a master contract. The county is not prohibited from accepting qualifications more
frequently or on an ongoing or rolling basis.
new text end

new text begin Subd. 5. new text end

new text begin Construction services bidding. new text end

new text begin The county shall request bids for
construction services for any project using job order contracting from qualified contractors
as follows:
new text end

new text begin (1) for projects up to a maximum cost of $50,000, the county shall request a
minimum of two bids;
new text end

new text begin (2) for projects with a cost greater than $50,000, but less than or equal to $100,000,
the county shall request a minimum of three bids; and
new text end

new text begin (3) for projects with a cost greater than $100,000, but less than or equal to $250,000,
the county shall request a minimum of four bids.
new text end

new text begin Subd. 6. new text end

new text begin Qualified contractor selection. new text end

new text begin The county shall select the contractor who
submits the lowest price bid for the construction services proposed. At the discretion of
the county, any or all bids may be rejected if it is determined to be in the best interest
of the county.
new text end

new text begin Subd. 7. new text end

new text begin Reasonable distribution of bid requests among qualified contractors.
new text end

new text begin The county, in requesting bidding for projects using job order contracting as described in
this section, shall develop a system to ensure a reasonable opportunity for all qualified
contractors to periodically bid on construction services.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin The authority to enter into new contracts under this section
expires on December 31, 2019.
new text end

new text begin Subd. 9. new text end

new text begin Reporting. new text end

new text begin Hennepin County must provide reports to the chairs of the
committees in the senate and the house of representatives that have jurisdiction over local
government operations, describing the uses of the authority provided in this section.
Uses of the authority described in the reports may include identifying the total number
of projects where this procurement method was used, the total number of contractors
qualified by the county, and the total annual expenditures for projects under this section.
The first report must be made by January 15, 2018, and subsequent reports must be made
on January 15 of each subsequent even-numbered year.
new text end

Sec. 3.

Minnesota Statutes 2014, section 383B.1588, subdivision 3, is amended to read:

Subd. 3.

Conditions.

(a) Forward pricing transactions made under this section must
be made only under the conditions in this subdivision.

(b) The amount of energy forward priced must not exceed the estimated energy
usage for Hennepin County operations for the period of time covered by the forward
pricing mechanism.

(c) The holding period and expiration date for any forward pricing mechanism must
not exceed deleted text begin 24 deleted text end new text begin 60 new text end months from the trade date of the transaction.

(d) Separate accounts must be established for each operational energy for which
forward pricing mechanisms are used under this section.