Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 212-S.F.No. 1129 
           An act relating to water and wastewater treatment; 
          expanding the authority of municipalities to contract 
          for private design and construction of water and 
          wastewater treatment facilities; amending Minnesota 
          Statutes 1990, section 471.371, subdivisions 2, 4, and 
          5; repealing Minnesota Statutes 1990, section 471.371, 
          subdivisions 1 and 6. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 471.371, 
subdivision 2, is amended to read: 
    Subd. 2.  [AUTHORIZATION OF DESIGN AND CONSTRUCT 
CONTRACTS.] Notwithstanding the provisions of any law or charter 
to the contrary, any municipality authorized by law to enter 
into a contract for the design and/or construction of water or 
wastewater treatment works facilities may advertise for sealed 
bids for the design and construction thereof under a single 
contract.  Prior to such advertisement the municipality shall 
prepare contract or cause to be prepared documents which shall 
serve as a basis for the comparison of bids and any contract to 
be entered into.  These documents shall be prepared by a 
professional engineer in sufficient detail, including hydraulic 
flow and organic loading calculations, design capacity, effluent 
limits, design life, and the treatment alternatives for the 
wastewater treatment facility, for the bidder to describe the 
probable cost, scope of work, equipment and materials of 
construction,; and the documents shall include performance 
standards for the construction and supervisional performance 
standards for the operation of the facilities facility which 
must be met for specified conditions and time periods, prior to 
final acceptance of the facilities facility by the municipality 
and by the Minnesota pollution control agency.  The contract 
documents shall require the bidder to furnish estimates of the 
annual operation and maintenance costs of the facility, 
conceptual plans and specifications and any other information 
deemed relevant for contract award.  
    In awarding the contract, the municipality shall take into 
consideration the performance guarantee, completion date, 
construction cost, capacity of the facility, design life 
estimated annual operation and maintenance cost, and other 
relevant factors.  
    The provisions of any law which require the Minnesota 
pollution control agency to approve all plans and specifications 
on a municipal or regional waste water or wastewater treatment 
facility prior to calling for construction bids shall not be 
applicable to contracts authorized by this section.  However, 
after bids have been received and evaluated by the governing 
body and, the best bid determined, and the contract awarded, a 
municipality shall not award a contract until the award is, by 
the terms of the awarded contract, allow construction to 
commence until all legal requirements are met and the plans and 
specifications for construction of a wastewater treatment 
facility have been approved by the Minnesota pollution control 
agency.  Nothing in this section shall prohibit the Minnesota 
pollution control agency from giving consideration to any or all 
bids prior to the determination by the governing body of the 
best bid, provided that the Minnesota pollution control agency 
or the municipality request that such consideration be given or, 
in the case of a water treatment facility, the plans and 
specifications for construction have been approved by the 
Minnesota department of health.  
    Upon award of the contract the municipality shall require 
the successful bidder to furnish detailed plans and 
specifications and shall provide for termination of the contract 
and may provide for penalties if such plans and specifications 
are insufficient to permit the municipality to satisfy the 
requirements of any federal or state grant permit.  
    Sec. 2.  Minnesota Statutes 1990, section 471.371, 
subdivision 4, is amended to read: 
    Subd. 4.  [DEFINITIONS.] As used in this section, 
"municipality" has the meaning given to it in section 471.345; 
"contract" includes not only construction work but also all 
necessary design services, including process and mechanical 
equipment, provisions for the start-up of the new facility, 
performance guarantee, and the other necessary and related items 
to make an operable plant; and "treatment works" has the meaning 
given to it in section 212, title II, of the Federal Water 
Pollution Control Act Amendments of 1972 "facility" or 
"facilities" shall, in addition to the treatment facility, 
include collection and distribution systems.  
    Sec. 3.  Minnesota Statutes 1990, section 471.371, 
subdivision 5, is amended to read: 
    Subd. 5.  [BID CONTRACT SECURITY AND INSURANCE.] Each 
design construct bid submitted shall include a bid bond, labor 
and materials bond and shall conform with appropriate executive 
orders related to requirements for the construction of 
wastewater treatment facilities under the construction grant 
program of the Federal Water Pollution Control Act and insurance 
as specified to provide for uniform and equitable bid review 
procedures awarded contract: 
    (1) shall require a payment and performance bond for the 
construction portion of the contract; 
    (2) shall require the successful bidder to guarantee the 
performance of the facility to the level required by a permit 
for the operation of the facility, for 12 months after the date 
operation begins; and 
    (3) may allow construction progress payments by the 
municipality to the successful bidder.  
    Sec. 4.  [REPEALER.] 
    Minnesota Statutes 1990, section 471.371, subdivisions 1 
and 6, are repealed. 
    Presented to the governor May 23, 1991 
    Signed by the governor May 27, 1991, 10:06 p.m.