SLS 19RS-226 ORIGINAL 2019 Regular Session SENATE BILL NO. 233 BY SENATOR GARY SMITH PUBLIC WORKS. Increases the threshold dollar amount that requires public bid for public works projects in St. Charles parish. (8/1/19) 1 AN ACT 2 To amend and reenact R.S. 38:2212(C)(1) and (S) and to enact R.S. 38:2212(C)(4), relative 3 to public works projects let by St. Charles Parish; to raise the threshold dollar 4 amount that requires a public bid; and to provide for related matters. 5 Notice of intention to introduce this Act has been published. 6 Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 38:2212(C)(1) and (S) is hereby amended and reenacted and R.S. 8 38:2212(C)(4) is hereby enacted to read as follows: 9 §2212. Advertisement and letting to lowest responsible and responsive bidder; 10 public work; electronic bidding; participation in mentor-protégé 11 program; exemptions 12 * * * 13 C.(1) Except as provided in Paragraphs (2), and (3), and (4) of this 14 Subsection, the term "contract limit" as used herein shall be equal to the sum of one 15 hundred fifty thousand dollars per project, including labor, materials, and equipment 16 as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate 17 Book and administrative overhead not to exceed fifteen percent, provided that Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 233 SLS 19RS-226 ORIGINAL 1 beginning February 1, 2015, and annually on February first of each subsequent year, 2 the office of facility planning and control within the division of administration shall 3 adjust the "contract limit" by an amount not to exceed the annual percentage increase 4 in the Consumer Price Index in the preceding year. The office of facility planning 5 and control within the division of administration shall publish the new contract limit 6 for public works contracts in the Louisiana Register in January of each year. 7 * * * 8 (4) For public work to be done by the St. Charles Parish governing 9 authority, the term "contract limit" as used herein shall be equal to the sum of 10 two hundred fifty thousand dollars per project, including labor, materials, and 11 equipment as per the rates in the latest edition of the Associated Equipment 12 Dealers Rental Rate Book and administrative overhead not to exceed fifteen 13 percent, provided that beginning February 1, 2021, and annually on February 14 first of each subsequent year, the office of facility planning and control within 15 the division of administration shall adjust the "contract limit" by an amount 16 not to exceed the annual percentage increase in the Consumer Price Index in the 17 preceding year. The office of facility planning and control within the division 18 of administration shall publish the new contract limit for public works contracts 19 let by the St. Charles Parish governing authority in the Louisiana Register in 20 January of each year beginning in January 2021. 21 * * * 22 S. The provisions of this Section shall not prevent public entities from using 23 their regular maintenance employees for labor necessary in the maintenance, 24 construction, or extension of publicly owned and operated electric public utilities. 25 With respect to the construction or extension of all other public utilities, the 26 provisions of this Section shall not prevent public entities from using their regular 27 maintenance employees when the cost of the work per project does not exceed one 28 hundred fifty thousand dollars, including labor and materials, or two hundred fifty 29 thousand dollars for the cost of work per project on St. Charles Parish publicly Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 233 SLS 19RS-226 ORIGINAL 1 owned utilities. All purchases of materials or supplies exceeding the contract limit 2 provided for in this Section shall be let by public bid as provided in this Part. 3 * * * The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Dawn Romero Watson. DIGEST SB 233 Original 2019 Regular Session Gary Smith Present law provides that all public work exceeding the contract limit, including labor and materials, to be done by a public entity shall be advertised and let by contract to the lowest responsible and responsive bidder who bid according to the bidding documents as advertised, and that no such public work shall be done except as provided in present law. Present law provides, with certain exceptions, that the term "contract limit" shall be equal to the sum of $150,000 per project, including labor, materials, and equipment as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate Book and administrative overhead not to exceed 15%. Provides that beginning February 1, 2015, and annually on February 1st of each subsequent year, the office of facility planning and control within the division of administration shall adjust the "contract limit" by an amount not to exceed the annual percentage increase in the Consumer Price Index in the preceding year. The contract limit published in the Louisiana Register in the January 2019 edition is $157,700. Proposed law provides an exception to the "contract limit" definition for public work to be done by the St. Charles Parish governing authority. Provides that the term "contract limit" shall be equal to the sum of $250,000 per project, including labor, materials, and equipment as per the rates in the latest edition of the Associated Equipment Dealers Rental Rate Book and administrative overhead not to exceed 15%. Provides that beginning February 1, 2021, and annually on February 1st of each subsequent year, the office of facility planning and control within the division of administration shall adjust the "contract limit" by an amount not to exceed the annual percentage increase in the Consumer Price Index in the preceding year. The office of facility planning and control within the division of administration shall publish the new contract limit for public works contracts let by the St. Charles Parish governing authority in the Louisiana Register in January of each year. Present law provides that present law shall not prevent public entities from using their regular maintenance employees for labor necessary in the maintenance, construction, or extension of publicly owned and operated electric public utilities. With respect to the construction or extension of all other public utilities, provides that the provisions of present law shall not prevent public entities from using their regular maintenance employees when the cost of the work per project does not exceed $150,000, including labor and materials. Requires all purchases of materials or supplies exceeding the contract limit provided for in present law to be let by public bid. Proposed law makes an exception from present law for St. Charles Parish owned publicly utilities and raises the threshold to $250,000. Effective August 1, 2019. (Amends R.S. 38:2212(C)(1) and (S); adds R.S. 38:2212(C)(4)) Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.