Minnesota Session Laws - 2008, Regular Session

CHAPTER 207--S.F.No. 3622

An act

relating to local government; changing the contract threshold amounts subject to certain requirements of the Uniform Municipal Contracting Law;

amending Minnesota Statutes 2006, sections 103E.705, subdivisions 5, 6, 7; 471.345, subdivisions 3, 4; Minnesota Statutes 2007 Supplement, section 471.345, subdivisions 3a, 4a, 5.

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

Section 1.

Minnesota Statutes 2006, section 103E.705, subdivision 5, is amended to read:

Subd. 5.

Repairs deleted text begin less than $50,000 deleted text end new text begin not subject to bidding requirements new text end .

If the drainage authority finds that the estimated cost of repairs and maintenance of one drainage system for one year will be less than the greater of deleted text begin $50,000 deleted text end new text begin the dollar amount requiring the solicitation of sealed bids under section 471.345, subdivision 3, new text end or $1,000 per mile of open ditch in the ditch system, it may have the repair work done by hired labor and equipment without advertising for bids or entering into a contract for the repair work.

Sec. 2.

Minnesota Statutes 2006, section 103E.705, subdivision 6, is amended to read:

Subd. 6.

Annual repair assessment levy limits.

The drainage authority may give notice of and hold a hearing on the repair levy before ordering the levy of an assessment for repairs. In one calendar year the drainage authority may not levy an assessment for repairs or maintenance on one drainage system for more than 20 percent of the benefits of the drainage system, $1,000 per mile of open ditch in the ditch system, or deleted text begin $50,000 deleted text end new text begin the dollar amount requiring the solicitation of sealed bids under section 471.345, subdivision 3 new text end , whichever is greater, except for a repair made after a disaster as provided under subdivision 7 or under the petition procedure.

Sec. 3.

Minnesota Statutes 2006, section 103E.705, subdivision 7, is amended to read:

Subd. 7.

Repair and construction after disaster.

The drainage authority may repair and reconstruct the drainage system without advertising for bids and without regard to the $1,000 per mile of open ditch or deleted text begin $50,000 deleted text end new text begin the dollar amount requiring the solicitation of sealed bids under section 471.345, subdivision 3, new text end limitation if:

(1) a drainage system is destroyed or impaired by floods, natural disaster, or unforeseen circumstances;

(2) the area where the drainage system is located has been declared a disaster area by the President of the United States and federal funds are available for repair or reconstruction; and

(3) the public interests would be damaged by repair or reconstruction being delayed.

Sec. 4.

Minnesota Statutes 2006, section 471.345, subdivision 3, is amended to read:

Subd. 3.

Contracts over deleted text begin $50,000 deleted text end new text begin $100,000 new text end .

If the amount of the contract is estimated to exceed deleted text begin $50,000 deleted text end new text begin $100,000 new text end , sealed bids shall be solicited by public notice in the manner and subject to the requirements of the law governing contracts by the particular municipality or class thereof deleted text begin provided that deleted text end new text begin . new text end With regard to repairs and maintenance of ditches, deleted text begin bids shall not be required if the estimated amount of the contract does not exceed the amount specified in deleted text end new text begin the provisions of new text end section 103E.705, subdivisions 5, 6, and 7 new text begin , apply new text end .

Sec. 5.

Minnesota Statutes 2007 Supplement, section 471.345, subdivision 3a, is amended to read:

Subd. 3a.

Contracts over deleted text begin $50,000 deleted text end new text begin $100,000 new text end ; best value alternative.

As an alternative to the procurement method described in subdivision 3, municipalities may award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

Sec. 6.

Minnesota Statutes 2006, section 471.345, subdivision 4, is amended to read:

Subd. 4.

Contracts from deleted text begin $10,000 deleted text end new text begin $25,000 new text end to deleted text begin $50,000 deleted text end new text begin $100,000 new text end .

If the amount of the contract is estimated to exceed deleted text begin $10,000 deleted text end new text begin $25,000 new text end but not to exceed deleted text begin $50,000 deleted text end new text begin $100,000 new text end , the contract may be made either upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof.

Sec. 7.

Minnesota Statutes 2007 Supplement, section 471.345, subdivision 4a, is amended to read:

Subd. 4a.

Contracts from deleted text begin $10,000 deleted text end new text begin $25,000 new text end to deleted text begin $50,000 deleted text end new text begin $100,000 new text end ; best value alternative.

As an alternative to the procurement method described in subdivision 4, municipalities may award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

Sec. 8.

Minnesota Statutes 2007 Supplement, section 471.345, subdivision 5, is amended to read:

Subd. 5.

Contracts new text begin $25,000 or new text end less deleted text begin than $10,000 deleted text end .

If the amount of the contract is estimated to be deleted text begin $10,000 deleted text end new text begin $25,000 new text end or less, the contract may be made either upon quotation or in the open market, in the discretion of the governing body. If the contract is made upon quotation it shall be based, so far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after their receipt. Alternatively, municipalities may award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).

Presented to the governor April 16, 2008

Signed by the governor April 17, 2008, 8:40 a.m.