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Key: (1) language to be deleted (2) new language

                             CHAPTER 5-S.F.No. 376 
                  An act relating to local improvements; setting limits 
                  for certain contract requirements; amending Minnesota 
                  Statutes 2000, section 429.041, subdivisions 1 and 2. 
           Section 1.  Minnesota Statutes 2000, section 429.041, 
        subdivision 1, is amended to read: 
        FOR BIDS.] When the council determines to make any improvement, 
        it shall let the contract for all or part of the work, or order 
        all or part of the work done by day labor or otherwise as 
        authorized by subdivision 2, no later than one year after the 
        adoption of the resolution ordering such improvement, unless a 
        different time limit is specifically stated in the resolution 
        ordering the improvement.  The council shall cause plans and 
        specifications of the improvement to be made, or if previously 
        made, to be modified, if necessary, and to be approved and filed 
        with the clerk, and if the estimated cost 
        exceeds $25,000 $35,000 for municipalities of less than 2,500 
        population, or $50,000 for all others, shall advertise for bids 
        for the improvement in the newspaper and such other papers and 
        for such length of time as it may deem advisable.  If the 
        estimated cost exceeds $100,000, publication shall be made no 
        less than three weeks before the last day for submission of bids 
        once in the newspaper and at least once in either a newspaper 
        published in a city of the first class or a trade paper.  To be 
        eligible as such a trade paper, a publication shall have all the 
        qualifications of a legal newspaper except that instead of the 
        requirement that it shall contain general and local news, such 
        trade paper shall contain building and construction news of 
        interest to contractors in this state, among whom it shall have 
        a general circulation.  The advertisement shall specify the work 
        to be done, shall state the time when the bids will be publicly 
        opened for consideration by the council, which shall be not less 
        than ten days after the first publication of the advertisement 
        when the estimated cost is less than $100,000 and not less than 
        three weeks after such publication in other cases, and shall 
        state that no bids will be considered unless sealed and filed 
        with the clerk and accompanied by a cash deposit, cashier's 
        check, bid bond, or certified check payable to the clerk, for 
        such percentage of the amount of the bid as the council may 
        specify.  In providing for the advertisement for bids the 
        council may direct that the bids shall be opened publicly by two 
        or more designated officers or agents of the municipality and 
        tabulated in advance of the meeting at which they are to be 
        considered by the council.  Nothing herein shall prevent the 
        council from advertising separately for various portions of the 
        work involved in an improvement, or from itself, supplying by 
        such means as may be otherwise authorized by law, all or any 
        part of the materials, supplies, or equipment to be used in the 
        improvement or from combining two or more improvements in a 
        single set of plans and specifications or a single contract. 
           Sec. 2.  Minnesota Statutes 2000, section 429.041, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTRACTS; DAY LABOR.] In contracting for an 
        improvement, the council shall require the execution of one or 
        more written contracts and bonds, conditioned as required by 
        law.  The council shall award the contract to the lowest 
        responsible bidder or it may reject all bids.  If any bidder to 
        whom a contract is awarded fails to enter promptly into a 
        written contract and to furnish the required bond, the 
        defaulting bidder shall forfeit to the municipality the amount 
        of the defaulter's cash deposit, cashier's check, bid bond, or 
        certified check, and the council may thereupon award the 
        contract to the next lowest responsible bidder.  When it appears 
        to the council that the cost of the entire work projected will 
        be less than $25,000 $35,000 for municipalities of less than 
        2,500 population, or $50,000 for all others, or whenever no bid 
        is submitted after proper advertisement or the only bids 
        submitted are higher than the engineer's estimate, the council 
        may advertise for new bids or, without advertising for bids, 
        directly purchase the materials for the work and do it by the 
        employment of day labor or in any other manner the council 
        considers proper.  The council may have the work supervised by 
        the city engineer or other qualified person but shall have the 
        work supervised by a registered engineer if done by day labor 
        and it appears to the council that the entire cost of all work 
        and materials for the improvement will be more 
        than $10,000 $25,000.  In case of improper construction or 
        unreasonable delay in the prosecution of the work by the 
        contractor, the council may order and cause the suspension of 
        the work at any time and relet the contract, or order a 
        reconstruction of any portion of the work improperly done, and 
        where the cost of completion or reconstruction necessary will be 
        less than $25,000 $35,000 for municipalities of less than 2,500 
        population, or $50,000 for all others, the council may do it by 
        the employment of day labor. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective the day following their 
        final enactment. 
           Presented to the governor February 28, 2001 
           Signed by the governor March 2, 2001, 2:00 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes