Water Tank Service Contract Bill Signed by Governor

Starting in September 2018, cities will be required to use the standard bid or best value contracting options for water tank maintenance projects over $175,000 in cost.
(Published May 14, 2018)

A bill (HF 1975, Rep. Bob Vogel, R-Elko New Market) that removes city authority to use special procurement options when dealing with water tank maintenance was signed into law as Chapter 124 on May 8.

The new law removes a previously allowed option under Minnesota Statutes, section 471.345, subdivision 5b of including water tank maintenance work under a multiyear professional service contract entered into through direct negotiation or a request for proposals.

The bill had narrowly passed the Senate with a 35-31 vote, but passed the House 122-3.

The final bill was amended from earlier versions, changing the threshold from $100,000 to $175,000. This change was made to match the competitive bid threshold, which recently changed to $175,000, rather than have its own threshold value. (See related Cities Bulletin article.)

So, if the cost of proposed maintenance is estimated to exceed $175,000, a city would need to separately bid using either a low bid or best value bid procurement process that is required for all other city contracts. The change will apply to contracts entered into on or after Sept. 1, 2018.

For more background information about this bill, read a previous Cities Bulletin article.

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