SLS 20RS-56 ORIGINAL
2020 Regular Session
SENATE BILL NO. 264
BY SENATOR PETERSON
LOCAL AGENCIES. Provides relative to the public water system, the public sewerage
system, and the public drainage system of the city of New Orleans. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 33:4071(A)(1)(e) as provided in Act No. 366 of the 2018
3 Regular Session of the Louisiana Legislature, 4084(A)(1)(b) and (2) and (E),
4 4085(A) and (B), 4090, and 4091 and to enact R.S. 33:4084(A)(1)(c) and
5 4096(A)(1)(c)(iv), relative to the Sewerage and Water Board of New Orleans; to
6 provide relative to the board; to provide for the purchase of supplies and machinery
7 and equipment; to provide for the letting and bidding of public contracts over a
8 certain amount; to provide relative to the costs of the installation of connections and
9 subsequent work; to provide for reports of board; to provide relative to exemptions
10 related to the Orleans Parish School Board; and to provide for related matters.
11 Notice of intention to introduce this Act has been published.
12 Be it enacted by the Legislature of Louisiana:
13 Section 1. R.S. 33:4071(A)(1)(e) as provided in Act No. 366 of the 2018 Regular
14 Session of the Louisiana Legislature, 4084(A)(1)(b) and (2) and (E), 4085(A) and (B), 4090,
15 and 4091 are hereby amended and reenacted and R.S. 33:4084(A)(1)(c) and
16 4096(A)(1)(c)(iv) are hereby enacted to read as follows:
17 §4071. Creation and organization of sewerage and water board
Page 1 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 * * *
2 A.(1) * * *
3 * * *
4 (e) The members appointed pursuant to Subparagraphs (c) and (d) of this
5 Paragraph shall include one citizen from each of the five council manic districts
6 within the city of New Orleans. In addition, two of the appointments shall be
7 consumer advocates with community advocacy or consumer protection experience
8 or experience in a related field, and one of the appointments shall be a retired civil
9 engineer.
10 * * *
11 §4084. Purchase of supplies; machinery and equipment; emergency purchase;
12 preference to home merchants
13 A.(1)(a) * * *
14 (b) However, purchases of ten thousand dollars or more, but less than
15 thirty thousand dollars, shall be made by obtaining not less than three telephone
16 or facsimile quotations. A written confirmation of the accepted offer shall be
17 obtained and made a part of the purchase files. If quotations lower than the
18 accepted quotation are received, the reasons for their rejection shall be
19 recorded in the purchase file.
20 (b)(c) No such purchases shall be made except as provided in this Part.
21 (2) The advertisement required by this Section shall be in accordance with
22 R.S. 38:2212.1(B) published at least three times during a ten-day period calling for
23 bidders, in the official journal of the city of New Orleans, the first advertisement to
24 appear at least fifteen days before the opening of bids.
25 * * *
26 E. In the event of extreme emergencies, or an imminent extreme
27 emergency, including but not limited to fires, storms, floods, and other disasters,
28 whether natural or man-made, necessitating major repairs or replacement of
29 equipment and machinery, the executive director or the general superintendent of the
Page 2 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 board may purchase the necessary machinery, equipment, and materials and furnish
2 the necessary labor to make all necessary emergency repairs and replacements
3 without the formality of advertising for bids. Such purchases may be made without
4 limitation as to cost and without regard as to the designation or source of the funds
5 collected, invested, or maintained by the board.
6 §4085. Construction work; letting contracts
7 A. The Sewerage and Water Board of New Orleans may do construction
8 work on its public systems of water, sewerage, and drainage, with its own forces in
9 those cases where the amount of work involved in the particular project does not
10 exceed a total value of one hundred fifty thousand dollars the annual amount in
11 accordance with R.S. 38:2212.
12 B.(1) For all public works contracts where the amount of the contract
13 exceeds the limit in accordance with R.S. 38:2212, the Sewerage and Water
14 Board of New Orleans shall let the contract to the lowest responsible and
15 qualified bidder after advertising as required by R.S. 38:2212. For all contract
16 work where the amount involved in the project is a sum in excess of ten thousand
17 dollars, the Sewerage and Water Board of New Orleans shall let same out by contract
18 to the lowest responsible and qualified bidder by sealed proposals after at least six
19 notices during a fifteen-day period calling for bidders, in the official journal of the
20 city of New Orleans, on detailed plans and specifications approved by the board on
21 file in the office of the board to be furnished to prospective bidders on application.
22 The specifications shall always be that the contractor shall give bond with some
23 surety company authorized to do business in New Orleans in an amount not less than
24 one-half of the amount of the contract for the faithful performance of his contract.
25 However, for contracts involving an amount less than fifty thousand dollars, the
26 provisions of R.S. 38:2219(A)(3) shall apply.
27 (2) All bidders bidding on public works for the Sewerage and Water
28 Board of New Orleans shall submit all bid forms required by statute or by the
29 Louisiana Administrative Code to the governing authority of the Sewerage and
Page 3 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 Water Board of New Orleans prior to the opening of all bids relative to a
2 contract for public works in accordance with R.S. 38:2212(B)(3)(b). In all such
3 contracts, regardless of the amount, which require or involve the employment of
4 mechanics or laborers the specifications shall contain a provision stating the
5 minimum wages to be paid various classes of laborers and mechanics which shall be
6 based upon the wages that will be determined by the secretary of the Department of
7 Labor of the United States to be the prevailing wage of the corresponding classes of
8 laborers and mechanics employed on projects of a character similar to the contract
9 work within the city of New Orleans.
10 (3) Bids for work may require the bidders to attach a bid bond or a certified
11 check for not more than five percent of the contract price of work to be done, as an
12 evidence of good faith of the bidder. The board may publish other necessary notices
13 and calls for bids.
14 (4) In every case the board may reject all bids and readvertise for new bids,
15 and informalities may be waived in the interest of the board.
16 * * *
17 §4090. Apportionment of cost of connections with mains; making connections
18 A. For any individual lot of record, the property owner shall bear all
19 costs, inclusive of meter boxes, for initial connections extended from the sewer
20 and water main to the property line. Any additional costs from the property line
21 to on-site facilities including but not limited to expanded connections or new or
22 additional meter boxes, shall be installed and maintained at the cost of the
23 property owner. For a lot of record which existed prior to 1954, one sewer
24 connection and one water connection extending from the respective main to the
25 property line shall be installed by and at the expense of the board, and from that
26 point on, each shall be made at the cost and expense of the owner of the property.
27 B. Each owner may contract with a licensed plumber in the state of
28 Louisiana for the installation of connections and any subsequent work, but all
29 such work shall be subject to the regulation, inspection, and control of the
Page 4 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 board. For all lots created after 1954, the property owner shall bear all costs,
2 inclusive of meter boxes, for connections extended from the sewer and water main
3 to the property line. Any additional costs from the property line to on-site facilities
4 shall be installed and maintained at the cost of the property owner.
5 C. In the event that the board performs work that causes a disruption
6 of the water or sewer connection from the main to the property line, including
7 but not limited to proactive repairs, moving or replacing a meter box, or
8 replacing a lead water line, the board shall bear the cost of repairing the
9 disrupted connection. Each owner may contract for the putting in of all connections
10 with which he is chargeable, but all such work shall be done under the rules and
11 regulations, and subject to the inspection and control of the board. The board shall
12 take separate bids from contractors for making a property holder's connections,
13 leaving to each property holder the right to require the work on his premises to be
14 done by the contractor at the bid price, or to employ someone else for that purpose.
15 D. For lots of record developed in accordance with the city zoning
16 ordinance, the board shall bear the cost of the initial connections extended from
17 the sewer and water main to the property line. All other provisions of this
18 Section shall remain in effect.
19 §4091. Reports of board
20 A. On or prior to the first day of May of each year, the board shall make to
21 the city council, in writing, a full and detailed report of its acts, doings, receipts, and
22 expenditures, the same to be put in printed form for public distribution, and a
23 synopsis of same, including a statement of receipts and disbursements, published in
24 the official journal of the city. To promote clarity and accountability in its
25 function as a public utility, the board shall make to the city council, on the first
26 weekday of March, June, September, and December of each year, a full and
27 detailed report on the following topics of significant public interest:
28 (1) In March, the board shall report on the condition of its water and
29 sewer systems and operations. This report may include, but is not limited to:
Page 5 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 (a) The latest available estimated percentage of annual water loss due to
2 leaks, theft, or other circumstances.
3 (b) Percentage of metered water, both revenue and nonrevenue.
4 (c) Estimated linear feet of water mains replaced in the previous
5 calendar year.
6 (d) Average age of water mains at the end of the previous calendar year.
7 (e) Number of water valves replaced in the previous calendar year.
8 (f) Age and condition of the board's water distribution pumps.
9 (g) Estimated cost in the previous calendar year of operations and
10 maintenance of the water distribution system.
11 (h) An update of the board's compliance with its obligations under the
12 Third Modified Consent Decree until said obligations for sewer system repairs
13 are completed.
14 (i) an update of major projects underway to improve the management
15 of potable water or wastewater in the city and any estimated associated costs.
16 (j) The latest list of unfunded projects identified to improve the water or
17 sewer system, including descriptions of their anticipated impacts and estimated
18 associated costs to implement.
19 (2) In June, the board shall report on the condition of its drainage and
20 power systems and operations. This report may include, but is not limited to:
21 (a) The condition of its drainage pumps, constant-duty pumps, and pump
22 stations.
23 (b) The condition of its self-generating power equipment.
24 (c) The condition of any board-controlled infrastructure that relays
25 commercial electricity to its drainage system.
26 (d) An update of major board-controlled projects underway to improve
27 the management of storm water in the city and any estimated associated costs.
28 (e) The latest list of unfunded projects identified to improve storm water
29 management, including descriptions of their anticipated impacts and estimated
Page 6 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 associated costs to implement.
2 (f) Measures taken by the board in preparation for hurricane season.
3 (3) In September, the board shall report on its financial condition,
4 including its latest audited financial report of the previous year and its
5 estimated financial condition year to date. This report may include, but is not
6 limited to:
7 (a) Estimated water and sewer rate collections year to date.
8 (b) Percentage of accounts receivables outstanding, including
9 delinquency schedule.
10 (c) Total ad valorem millages for drainage collected for the current year
11 and amount spent year to date.
12 (d) Update of significant customer service improvements implemented
13 since the first weekday of September in the previous year.
14 (e) Any additional information on subject matters requested by the city
15 council at least thirty days prior to the due date of the report.
16 (4) In December, the board shall report on the condition of its workforce.
17 This report may include, but is not limited to, the following information
18 compiled since the first weekday of December in the previous year:
19 (a) Number of promotions and new hires made.
20 (b) Number of new positions created.
21 (c) Number of existing vacancies.
22 (d) Description of the workforce based on years of experience.
23 (e) Percentage of workforce eligible for retirement.
24 (f) Percentage of workforce participating in the DROP program.
25 (5) The contents of each quarterly report referenced above may be
26 revised to include additional or different subject matter by the chair of the
27 council's public works committee no less than thirty days prior to the applicable
28 deadline by notifying the board of such changes in writing.
29 B. In addition to the requirements of Subsection A of this Section, the board
Page 7 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 shall report quarterly, in September, December, March, and June, to the city council
2 relative to the contracts let in the construction and repair of its public systems of
3 water, sewerage, and drainage. Such report shall include the following for new
4 contracts let during the reporting period:
5 (1) The total number of contracts let to all contractors.
6 (2) The total value of contracts let to all contractors.
7 (3)(a) The total number of contracts let to local disadvantaged business
8 enterprises expressed as a percentage of the total number of contracts let.
9 (b) The total number of contracts let to local businesses expressed as a
10 percentage of the total number of contracts let.
11 (4)(a) The total value of contracts let to local disadvantaged business
12 enterprises expressed as a percentage of the total value of contracts let.
13 (b) The total value of contracts let to local businesses expressed as a
14 percentage of the total value of contracts let.
15 (5) The total number of contracts let to a fifty-fifty joint venture enterprise
16 expressed as a percentage of the total number of contracts let.
17 [Effective Date: Text of Subsection (C)(intro para) effective until election per 2018, 366,
18 §3 ]
19 C. In addition to the requirements of Subsections A and B of this Section, the
20 board shall report quarterly, in September, December, March, and June, to the city
21 council relative to its operations. Such report shall include the following in a manner
22 as prescribed by the city council:
23 [Effective Date: Text of Subsection (C)(intro para) effective on election per 2018, 366,
24 §3]
25 C. In addition to the requirements of Subsections A and B of this Section, the
26 board shall report quarterly no later than the first day of the second month following
27 the close of each calendar quarter to the city council relative to its operations. The
28 report shall include the following in a manner as prescribed by the city council:
29 (1) Standard industry metrics for best practice, including but not limited to:
Page 8 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 (a) Percentage of water loss.
2 (b) Percentage of water paid.
3 (c) Percentage of receivables outstanding, including delinquency schedule.
4 (d) Customer service improvements.
5 (2) Processes and indicators for prevention of waste or fraud.
6 (3) Performance metrics for employees and contractors.
7 (4) Benchmarks of success regarding improved coordination between the
8 board and the Department of Public Works to ensure priority and resource alignment.
9 (5) Report on the efficiency and effectiveness of information systems.
10 (6) Detailed reports on assessment and status of technologies and operation
11 programs and strategies for system redundancy and service improvements.
12 (7) Detailed reports on assessment and status of operational reforms, capital
13 improvement programs, and service assurance programs.
14 [Effective Date: Text of Paragraph (C)(8) effective upon election per 2018, 366, §3 ]
15 (8) The identity and detailed information on the status of all projects and all
16 improvements made since the close of the last quarter.
17 [Effective Date: Text of Subsection D effective upon election per 2018, 366, §3 ]
18 D. The mayor or the chief administrative officer and the executive director
19 shall present each quarterly report to the city council at the next regularly scheduled
20 city council meeting dedicated to public works.
21 [Effective Date: Text of Subsection E effective upon election per 2018, 366, §3 ]
22 E.B. If a quarterly report is not submitted timely to the city council, the
23 executive director shall attend the council's next regularly scheduled meeting and
24 present to the council the reasons for the failure to timely submit the report.
25 [Effective Date: Text of Subsection F effective upon election per 2018, 366, §3 ]
26 F.C. In addition to the other requirements of this Section, the board shall send
27 a report, by electronic mail, to the members of the Orleans Parish legislative
28 delegation and the members of the governing authority of Orleans Parish detailing
29 the pumping and electrical power of its facilities and the available manpower no later
Page 9 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
1 than twenty-four hours prior to a hurricane entering the Gulf of Mexico as
2 determined by the National Weather Service and no later than forty-eight hours after
3 a flood watch or warning or thunderstorm watch or warning is issued by the National
4 Weather Service for any area of Orleans Parish.
5 * * *
6 §4096. New Orleans sewerage and water board; water rates; water revenue bonds
7 A.(1) The Sewerage and Water Board of New Orleans shall fix the rates to
8 be charged consumers of water, including the power to exceed the total rates in force
9 on November 1, 1913, and shall collect the same from all persons who use water
10 from the public water supply except that:
11 * * *
12 (c) The Orleans Parish School Board shall be exempt as follows:
13 * * *
14 (iv) Notwithstanding any provisions of law to the contrary, the exemption
15 outlined in this Subsection may be superceded by a mutually agreed upon and
16 executed cooperative endeavor agreement between the Sewerage and Water
17 Board of New Orleans and the Orleans Parish School Board, wherein the terms
18 of the cooperative endeavor agreement shall govern the rate and means by
19 which public schools in Orleans Parish are charged for water and sewer
20 services.
21 * * *
22 Section 2. This Act shall become effective upon signature by the governor or, if not
23 signed by the governor, upon expiration of the time for bills to become law without signature
24 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
25 vetoed by the governor and subsequently approved by the legislature, this Act shall become
26 effective on the day following such approval.
Page 10 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michael Bell.
DIGEST
SB 264 Original 2020 Regular Session Peterson
Present law provides for the sewerage and water board to be composed as follows:
(1)The mayor.
(2)The chair of the Public Works, Sanitation and Environment Committee of the New
Orleans city council, a member of the committee appointed by the chair, or a civil
engineer appointed by the chair. Any member appointed by the chair shall serve at
the pleasure of the chair.
(3)Two syndicate members of the board of liquidation, city debt, to be appointed by the
mayor on the recommendation of the board of liquidation, city debt.
(4)Seven citizens, to be appointed by the mayor, with the advice and consent of the city
council from a list of nominees submitted by the Sewerage and Water Board
Selection Committee.
Proposed law provides that the members appointed pursuant to (3) and (4) above shall
include one citizen from each of the five council manic districts within the city of New
Orleans. In addition, two of the appointments shall be consumer advocates with community
advocacy or consumer protection experience or experience in a related field, and one of the
appointments shall be a retired civil engineer.
Proposed law retains present law but eliminates the mandate that one of the appointments
to the board must be a retired civil engineer.
Present law requires the advertisement and letting of a contract when the board purchases
materials or supplies exceeding $30,000 for the conduct, operation, maintenance, and repair
of the its systems.
Proposed law retains present law and provides that purchases of $10,000 or more but less
than $30,000, must be made by obtaining at least three telephone or facsimile quotations.
Proposed law further provides for a written confirmation of the accepted offer must be
obtained and made a part of the purchase file.
Present law provides for the Sewerage and Water Board of New Orleans to do construction
work on its public systems with its own forces when the amount of work involved in the
project does not exceed a total value of $150,000.
Proposed law authorizes the Sewerage and Water Board of New Orleans to contract with the
lowest bidder after advertising for all public works contracts exceeding the legal limit.
Present law provides for the board to install and pay the cost to connect one sewer
connection and one water connection extending from the respective main to the property line
and from that point on, each must be made at the cost and expense of the owner of the
property for a lot of record which existed prior to 1954.
Present law requires the property owner for all lots created after 1954, to bear all costs for
connections extended from the sewer and water main to the property line, and any
additionally costs from the property line to on-site facilities must be installed and maintained
at the cost of the property owner.
Page 11 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 264
SLS 20RS-56 ORIGINAL
Proposed law provides that each property owner may contract with a licensed plumber in the
state of Louisiana for the installation of connections and any subsequent work, however all
such work shall be subject to the regulation, inspection and control of the board. Proposed
law further provides that if the work is performed by the board and a disruption of the water
or sewer connection from the main to the property line is caused, the board will bear the cost
of repairing the disrupted connection.
Present law requires for the board to make to the city council, in writing, a full and detailed
report of its acts, doings, receipts, and expenditures, on or prior to the first day of May of
each year. Additionally, present law provides that the board report quarterly, in September,
December, March, and June to the city council relative to contracts let in the construction
and repair of its public systems.
Proposed law provides for the board to report to the city council on the first weekday of
March, June, September and December of each year: in March on the condition of its water
and sewer systems and operations; in June on the condition of its drainage and power
systems and operations; in September on its financial condition, including its latest audited
financial report of the previous year and its estimated financial condition year to date; and
in December on the condition of its workforce.
Present law provides for the Orleans Parish School Board to be exempt from water rates in
certain circumstances.
Proposed law retains present law and provides that the exemptions afforded to the Orleans
Parish School Board may be superceded by a mutually agreed upon and executed
cooperative endeavor agreement between the Sewerage and Water Board of New Orleans
and the Orleans Parish School Board, wherein the terms of the cooperative endeavor
agreement shall govern the rate and means by which public schools in Orleans Parish are
charged for water and sewer services.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 33:4071(A)(1)(e) of Act 366 of 2018 R.S., 4084(A)(1)(b) and (2) and (E),
4085(A) and (B), 4090, and 4091; adds R.S. 33:4084(A)(1)(c) and 4096(A)(1)(c)(iv))
Page 12 of 12
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.