House File 529 - Introduced
HOUSE FILE
BY COMMITTEE ON
AGRICULTURE
(SUCCESSOR TO HF 401)
A BILL FOR
1 An Act relating to drainage and levee districts, by providing
2 for mergers, repairs and improvements, and elections.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1657HV (2) 86
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PAG LIN
1 1 DIVISION I
1 2 MERGERS
1 3 Section 1. Section 468.265, subsection 2, Code 2015, is
1 4 amended by striking the subsection and inserting in lieu
1 5 thereof the following:
1 6 2. a. The auditor of the county where a participating
1 7 drainage or levee district is situated or the auditor
1 8 designated by the board shall deliver the notice required in
1 9 subsection 1 to all landowners in the district in the same
1 10 manner as provided in sections 468.14 through 468.18, as the
1 11 auditor deems appropriate.
1 12 b. If land is to be annexed as a condition of the merger,
1 13 as provided in this part, the auditor of the county where the
1 14 land to be annexed is situated or the auditor designated by the
1 15 board shall deliver the notice to the owners of such land by
1 16 ordinary mail.
1 17 Sec. 2. Section 468.265, subsections 3 and 4, Code 2015, are
1 18 amended by striking the subsections.
1 19 DIVISION II
1 20 THRESHOLD AMOUNTS FOR PERFORMING WORK
1 21 Sec. 3. Section 468.3, Code 2015, is amended by adding the
1 22 following new subsection:
1 23 NEW SUBSECTION. 01. As used in this chapter, unless the
1 24 context otherwise requires, the term "adjusted competitive
1 25 bid threshold" means the same as the adjusted competitive bid
1 26 threshold for vertical infrastructure applicable to counties as
1 27 established by the state department of transportation pursuant
1 28 to section 314.1B.
1 29 Sec. 4. Section 468.3, subsection 9, Code 2015, is amended
1 30 by striking the subsection.
1 31 Sec. 5. Section 468.34, Code 2015, is amended by striking
1 32 the section and inserting in lieu thereof the following:
1 33 468.34 Advertisement for bids.
1 34 The board shall publish notice once each week for two
1 35 consecutive weeks in a newspaper published in the county
2 1 where the improvement is located, and publish additional
2 2 advertisement and publication elsewhere as the board may
2 3 direct. The notice shall state the time and place of letting
2 4 the work of construction of the improvement, specifying the
2 5 approximate amount of work to be done in each numbered section
2 6 of the district, the time fixed for the commencement, and the
2 7 time of the completion of the work, that bids will be received
2 8 on the entire work and in sections or divisions of it, and that
2 9 a bidder will be required to deposit a bid security with the
2 10 county auditor as provided in section 468.35A. All notices
2 11 shall set the date that bids will be received and upon which
2 12 the work will be let. However, when the estimated cost of
2 13 the improvement is less than the adjusted competitive bid
2 14 threshold, the board may let the contract for the construction
2 15 without taking bids and without publishing notice.
2 16 Sec. 6. NEW SECTION. 468.35A Bids == letting of work.
2 17 1. The board shall award a contract or contracts for each
2 18 section of the work to the lowest responsible bidder or bidders
2 19 therefor, bids to be submitted, received, and acted upon
2 20 separately as to the main drain and each of the laterals, and
2 21 each settling basin, if any, exercising their own discretion as
2 22 to letting such work as to the main drain as a whole, or as to
2 23 each lateral as a whole, or by sections as to both main drain
2 24 and laterals, and reserving the right to reject any and all
2 25 bids and readvertise the letting of the work.
2 26 2. A bid shall be in writing, specifying the portion
2 27 of the work upon which the bid is made, and filed with the
2 28 auditor. The bid shall be accompanied with a bid security.
2 29 The bid security shall be in the form of a deposit of cash, a
2 30 certified check on and certified by a bank in Iowa, a certified
2 31 share draft drawn on a credit union in Iowa, or a bid bond
2 32 with a corporate surety satisfactory to the board as provided
2 33 in section 73A.20. The bid security must be payable to the
2 34 auditor or the auditor's order at the auditor's office in a
2 35 sum equal to five percent of the amount of the bid. However,
3 1 if the maximum limit on a bid security would cause a denial
3 2 of funds or services from the federal government which would
3 3 otherwise be available, or if the maximum limit would otherwise
3 4 be inconsistent with the requirements of federal law, the
3 5 maximum limit may be suspended to the extent necessary to
3 6 prevent denial of federal funds or services or to eliminate
3 7 the inconsistency with federal requirements. The cash, check,
3 8 or share draft of an unsuccessful bidder shall be returned,
3 9 and the bid bond of an unsuccessful bidder shall be canceled.
3 10 The bid security of a successful bidder shall be maintained
3 11 as a guarantee that the bidder will enter into contract in
3 12 accordance with the bids.
3 13 Sec. 7. NEW SECTION. 468.36A Performance bond == return of
3 14 deposit.
3 15 A successful bidder is required to execute a bond with
3 16 sureties approved by the auditor in favor of the county for
3 17 the use and benefit of the levee or drainage district and all
3 18 persons entitled to liens for labor or material in an amount
3 19 not less than seventy=five percent of the contract price of the
3 20 work to be done, conditioned for the timely, efficient, and
3 21 complete performance of the contract, and the payment, as they
3 22 become due, of all just claims for labor performed and material
3 23 used in carrying out the contract. When a contract is executed
3 24 and bond approved by the board, the cash, certified check, or
3 25 certified share draft deposited with the bid shall be returned
3 26 to the bidder.
3 27 Sec. 8. Section 468.66, Code 2015, is amended to read as
3 28 follows:
3 29 468.66 Bids required.
3 30 In case If the board determines that a change described
3 31 in section 468.62 increases the cost of the improvement to
3 32 more than in excess of the adjusted competitive bid threshold
3 33 as provided in section 26.3, the board and any bidders shall
3 34 comply with the competitive bid requirements applicable to
3 35 a governing entity ordering the construction of a public
4 1 improvement in chapter 26 work shall be let by bids in the same
4 2 manner as is provided for the original construction of such
4 3 improvements.
4 4 Sec. 9. Section 468.126, subsection 1, paragraphs c and d,
4 5 Code 2015, are amended by striking the paragraphs and inserting
4 6 in lieu thereof the following:
4 7 c. If the estimated cost of the repair does not exceed fifty
4 8 thousand dollars, the board may order the work done without
4 9 conducting a hearing on the matter. Otherwise, the board shall
4 10 set a date for a hearing and provide notice of the hearing to
4 11 landowners in the district by publication in the same manner
4 12 as provided in section 468.15. However, if the estimated cost
4 13 of the repair exceeds the adjusted competitive bid threshold,
4 14 the board shall provide notice to the landowners pursuant to
4 15 sections 468.14 through 468.18. The board shall not divide a
4 16 proposed repair into separate programs in order to avoid the
4 17 notice and hearing requirements of this paragraph.
4 18 d. If a hearing is required under paragraph "c", the board
4 19 shall order an engineer's report or a report from the soil
4 20 and water conservation district conservationist regarding the
4 21 matter to be presented at the hearing. The board may waive the
4 22 report requirement if a prior report on the repair exists and
4 23 that report is less than ten years old. At the hearing, the
4 24 board shall hear objections to the feasibility of making the
4 25 proposed repair.
4 26 Sec. 10. Section 468.126, subsection 1, Code 2015, is
4 27 amended by adding the following new paragraphs:
4 28 NEW PARAGRAPH. e. Following a hearing, if required in
4 29 paragraph "c", the board shall determine whether the repair is
4 30 necessary or desirable, and feasible.
4 31 NEW PARAGRAPH. f. Any interested party has the right
4 32 of appeal from such orders in the manner provided in this
4 33 subchapter, parts 1 through 5.
4 34 NEW PARAGRAPH. g. The right of remonstrance does not apply
4 35 to a repair as provided in this section.
5 1 Sec. 11. Section 468.126, subsection 2, Code 2015, is
5 2 amended to read as follows:
5 3 2. In the case of a minor repair, or in the eradication of
5 4 brush and or weeds along the open ditches, not in excess of
5 5 twenty thousand dollars the adjusted competitive bid threshold,
5 6 where the board finds that a saving to the district will
5 7 result, the board may cause the repairs or eradication to be
5 8 done by secondary road fund equipment, or weed fund equipment,
5 9 and labor of the county and then reimburse the secondary road
5 10 fund or the weed fund from the fund of the drainage district
5 11 thus benefited.
5 12 Sec. 12. Section 468.126, subsection 4, Code 2015, is
5 13 amended to read as follows:
5 14 4. a. For the purpose of this subsection, an "improvement"
5 15 in a drainage or levee district in which any ditch, tile drain,
5 16 or other facility has previously been constructed is a project
5 17 intended to expand, enlarge, or otherwise increase the capacity
5 18 of any existing ditch, drain, or other facility above that for
5 19 which it was designed.
5 20 a. b. When the board determines that an improvement is
5 21 necessary or desirable, and feasible, the board shall appoint
5 22 an engineer to make surveys as seem appropriate to determine
5 23 the nature and extent of the needed improvement, and to file
5 24 a report showing what improvement is recommended and its
5 25 estimated cost, which report may be amended before final
5 26 action.
5 27 c. If the estimated cost of the improvement does not
5 28 exceed fifty thousand dollars, the board may order the work
5 29 done without conducting a hearing on the matter. Otherwise,
5 30 the board shall set a date for a hearing on whether to
5 31 construct the proposed improvement and whether there shall be
5 32 a reclassification of benefits for the cost of the proposed
5 33 improvement.
5 34 (1) (a) The board shall provide notice to landowners in
5 35 the district by publication in the same manner as provided
6 1 in section 468.15. However, if the estimated cost of the
6 2 improvement exceeds the adjusted competitive bid threshold,
6 3 the board shall provide notice to the landowners pursuant to
6 4 sections 468.14 through 468.18.
6 5 (b) Notwithstanding subparagraph division (a), and in lieu
6 6 of publishing the notice, the board may mail a copy of the
6 7 notice to each address where a landowner within the district
6 8 resides by first class mail if the cost of mailing is less
6 9 than publication of the notice. The mailing shall be made
6 10 during the time the notice would otherwise be required to be
6 11 published.
6 12 (2) The board shall not divide proposed improvements into
6 13 separate programs in order to avoid compliance with this
6 14 paragraph "b" "c".
6 15 d. At the hearing, if required in paragraph "c", the board
6 16 shall hear objections to the feasibility of the proposed
6 17 improvements and arguments for or against a reclassification
6 18 presented by or for any taxpayer of the district. Following
6 19 a the hearing, if required by section 26.12, the board shall
6 20 order that the improvements improvement it deems necessary or
6 21 desirable and feasible be made and shall also determine whether
6 22 there should be a reclassification of benefits for the cost
6 23 of improvements the improvement. If it is determined that a
6 24 reclassification of benefits should be made, the board shall
6 25 proceed as provided in section 468.38. In lieu of publishing
6 26 the notice of a hearing as provided by section 331.305, the
6 27 board may mail a copy of the notice to each address where
6 28 a landowner in the district resides by first class mail if
6 29 the cost of mailing is less than publication of the notice.
6 30 The mailing shall be made during the time the notice would
6 31 otherwise be required to be published.
6 32 b. When ordering the construction of an improvement under
6 33 this subsection, the board shall comply with the competitive
6 34 bid requirements applicable to a governing entity ordering
6 35 the construction of a public improvement in chapter 26. If
7 1 the improvement is more than fifty thousand dollars but less
7 2 than the competitive bid threshold in section 26.3, the board
7 3 shall conduct a hearing on the matter of making the proposed
7 4 improvement. The board shall provide notice of the hearing as
7 5 provided in sections 468.14 through 468.18.
7 6 c. e. If the estimated cost of the improvements improvement
7 7 exceeds the adjusted competitive bid threshold as provided in
7 8 section 26.3, or the original cost of the district plus the
7 9 cost of subsequent improvements in the district, whichever
7 10 amount is the greater amount, a majority of the landowners,
7 11 owning in the aggregate more than seventy percent of the
7 12 total land in the district, may file a written remonstrance
7 13 against the proposed improvements improvement, at or before the
7 14 time fixed date set for hearing on the proposed improvements
7 15 improvement as provided in paragraph "c", with the county
7 16 auditor, or auditors in case the district extends into more
7 17 than one county. If a remonstrance is filed, the board shall
7 18 discontinue and dismiss all further proceedings on the proposed
7 19 improvements and charge the costs incurred to date for the
7 20 proposed improvements to the district. Any interested party
7 21 may appeal from such orders in the manner provided in this
7 22 subchapter, parts 1 through 5. However, this section does not
7 23 affect the procedures of section 468.132 covering the common
7 24 outlet.
7 25 DIVISION III
7 26 JUDGES OF TRUSTEE ELECTIONS
7 27 Sec. 13. Section 468.521, Code 2015, is amended to read as
7 28 follows:
7 29 468.521 Elections == how conducted.
7 30 1. After the first election of trustees, the board of
7 31 trustees shall act as judges of election; however, a trustee
7 32 standing for election shall not serve as a judge and shall be
7 33 replaced as judge by a person not standing for election who is
7 34 eligible to be elected as a trustee.
7 35 2. The clerk of the board shall act as one of the clerks and
8 1 some an owner of land in the district shall be appointed by the
8 2 board to act as another clerk.
8 3 3. The trustees board shall fill all vacancies in the
8 4 election board any vacancy of an acting election judge by
8 5 appointing a person who resides in the county where all or
8 6 part of the drainage or levee district is located and who is
8 7 eligible to vote in a general election in that county.
8 8 4. The result of each election shall be certified to the
8 9 auditor or the several county auditors if the district is
8 10 located in more than one county.
8 11 EXPLANATION
8 12 The inclusion of this explanation does not constitute agreement with
8 13 the explanation's substance by the members of the general assembly.
8 14 GENERAL. This bill amends provisions relating to the
8 15 governance of a drainage or levee district (district) governed
8 16 by a drainage district board.
8 17 MERGER. The bill amends requirements for providing notice
8 18 to persons affected by a proposed merger of two or more
8 19 districts, and persons affected by a proposed annexation of
8 20 land as part of such merger. The bill eliminates a requirement
8 21 that the notice be delivered by ordinary mail and publication
8 22 to specified affected persons who have an interest in a
8 23 district participating in the merger and, if required, to the
8 24 owners of land that may be annexed (Code section 468.265).
8 25 That process is replaced by a requirement that landowners
8 26 receive notice under the same requirements that apply when a
8 27 district is established, including by publication, certified
8 28 mail, or personal service (Code sections 468.14 through
8 29 468.18). If the proposed merger includes the annexation of
8 30 land, notice must be provided to landowners by ordinary mail.
8 31 THRESHOLD AMOUNTS == BIDDING PROCEDURES. The bill amends
8 32 provisions governing when a board must let out a project
8 33 (either for a repair or improvement for bid and conduct a
8 34 hearing regarding the project). The bill eliminates a number
8 35 of provisions that require the same procedures as used under
9 1 the "Iowa Construction Bidding Procedures Act" (Code chapter
9 2 26) and replaces them with procedures that existed prior to
9 3 July 1, 2014 (2014 Iowa Acts, ch. 1075). However, in lieu
9 4 of using fixed dollar amounts as existed in the prior law,
9 5 the bill requires that letting out bids is required when the
9 6 estimated cost of a project exceeds the "adjusted competitive
9 7 bid threshold" for vertical infrastructure applicable to
9 8 counties established by the state department of transportation
9 9 (Code section 314.1B). The bill also requires a notice to
9 10 landowners of the district and a hearing on the matter if the
9 11 estimated cost of the project exceeds $50,000. The notice must
9 12 be by publication (Code section 468.15), unless the estimated
9 13 cost of the project exceeds the competitive bid threshold in
9 14 which case notice is required in the same manner as when a
9 15 district is established, including by publication, certified
9 16 mail, or personal service (Code sections 468.14 through
9 17 468.18). The bill also provides that in the case of a repair
9 18 or of eradicating brush or weeds along open ditches, the board
9 19 may use moneys credited to the county's secondary road fund or
9 20 weed fund, so long as the project does not exceed the adjusted
9 21 competitive bid threshold and the fund is repaid.
9 22 JUDGES OF TRUSTEE ELECTIONS. The bill amends a provision
9 23 that requires the board of trustees elected to manage a
9 24 district to also serve as judges canvassing the results of the
9 25 next district election. The bill provides that when there is
9 26 a vacancy the board may appoint any individual to serve as a
9 27 judge, so long as they reside in the county where all or part of
9 28 the district is located and are eligible to vote in the general
9 29 election.
9 30 BACKGROUND. A district is established by a county board of
9 31 supervisors which manages the district (Code section 468.1).
9 32 A district may also be established and managed by a joint
9 33 board of supervisors if the district crosses county lines
9 34 (Code chapter 468, subchapter II). A board of supervisors may
9 35 relinquish control of a district to a board of elected trustees
10 1 (Code chapter 468, subchapter III). The two basic types of
10 2 drainage projects are repairs and improvements. Generally, a
10 3 repair is work which is necessary to restore the facility to
10 4 its original design or intended efficiency while an improvement
10 5 is an improvement that enhances or enlarges the district's
10 6 capacity or efficiency.
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