SB198: Bill Text

LRB-0347/5

MES:kg:mrc

1999 - 2000 LEGISLATURE

1999 Senate BILL 198

June 17, 1999 - Introduced by Senators George, Huelsman, Roessler, Farrow and Rude, cosponsored by Representatives Riley, Musser, Colon, Carpenter and Gronemus. Referred to Committee on Economic Development, Housing and Government Operations.

SB198,1,9 An Act to amend 59.52 (29) (a), 60.47 (2) (a), 60.47 (2) (b), 60.47 (5), 61.55, 62.03 (1), 62.15 (1), 66.24 (5) (d), 66.904 (2) (a), 66.904 (2) (e) and 281.41 (1); and to create 59.52 (29) (c) to (e), 60.47 (2m), 62.15 (1m), 66.24 (5) (e), 66.904 (2) (am) and 281.01 (3e) of the statutes; relating to: authorizing cities, villages, towns, counties, metropolitan sewerage districts, technical colleges and federated public libraries to let public works contracts under the design-build construction process, changing the threshold amounts that require competitive bidding under public works contracts and providing an exemption from competitive bidding requirements.

Analysis by the Legislative Reference Bureau

In general, under current law, before a contract for public construction with a value that exceeds $5,000 but does not exceed $20,000 may be let by a county, a class 1 notice of the proposed construction must be given by the county board. Also under current law, before a contract for public construction with a value that exceeds $5,000 but does not exceed $10,000 may be let by a municipality (2nd, 3rd or 4th class city, or a village or town), a class 1 notice of the proposed construction must be given by the municipality's governing body. Before a contract for public construction with a value that exceeds $20,000 may be let by a county, or exceeds $10,000 in the case of a municipality, certain other requirements, such as a lowest responsible bidder requirement, must be met. A county board, by a three-fourths vote of its membership, may also authorize the county itself to perform any class of public work if the estimated cost of the work exceeds $20,000.

This bill authorizes municipalities, 1st class cities (presently only Milwaukee), counties, metropolitan sewerage districts, technical colleges and federated public library systems (local governmental units) to let a contract for public construction, the estimated cost of which exceeds $1,000,000, using the design-build construction process, which is defined as a procurement process under which the engineering, design and construction services are provided by a single entity.

If a local governmental unit wishes to construct a public work using the design-build construction process, the local governmental unit must use a two stage selection process. Under the first stage, the local governmental unit must publish a notice that includes a project statement that describes the space needs and design goals for the project, detailed submission requirements, selection procedures, the composition of the selection panel and whether the local governmental unit will offer a stipend to unsuccessful design-build teams and, if so, the amount of the stipend.

Following receipt of the bids, the local governmental unit must select five or less design-build teams to participate in the second stage of the selection process. The selection of the finalist teams in the first stage of the process must be based on factors that include the background, experience and qualifications of the members of the teams and the quality of the initial proposal.

In the second stage of the selection process, the local governmental unit must choose from among the five or less finalist teams if the unit determines that at least one of the finalists will be able to construct the public work in a way that is satisfactory to the unit. The local governmental unit must conduct interviews of each team, and each team must make a presentation. The criteria to be used in making a final selection may include the quality of the proposed design, the extent to which a proposal demonstrates compliance with the project statement, the estimated cost of the project and a guaranteed maximum price for the project. If the local governmental unit enters into a contract with one of the teams, that design-build team must obtain bonding to guarantee completion of the project.

The bill also increases the threshold amount that requires competitive bidding on public works contracts to $20,000 for municipalities and metropolitan sewerage districts that contain a 1st class city and, for municipalities, exempts from competitive bidding public works contracts in which the building materials or labor is donated.

For further information see the local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB198, s. 1 Section 1. 59.52 (29) (a) of the statutes is amended to read:

SB198,3,15 59.52 (29) (a) All Except as provided in par. (c) 2., all public work, including any contract for the construction, repair, remodeling or improvement of any public work, building, or furnishing of supplies or material of any kind where the estimated cost of such work will exceed $20,000 shall be let by contract to the lowest responsible bidder. Any public work, the estimated cost of which does not exceed $20,000, shall be let as the board may direct. If the estimated cost of any public work is between $5,000 and $20,000, the board shall give a class 1 notice under ch. 985 before it contracts for the work or shall contract with a person qualified as a bidder under s. 66.29 (2). A contract, the estimated cost of which exceeds $20,000, shall be let and entered into under s. 66.29, except that the board may by a three-fourths vote of all the members entitled to a seat provide that any class of public work or any part thereof may be done directly by the county without submitting the same for bids. This subsection does not apply to highway contracts which the county highway committee or the county highway commissioner is authorized by law to let or make.

SB198, s. 2 Section 2. 59.52 (29) (c) to (e) of the statutes are created to read:

SB198,3,19 59.52 (29) (c) 1. In this subsection, "design-build construction process" means a procurement process under which the engineering, design and construction services are provided by a single entity under a process described under par. (d).

SB198,3,21 2. Any public works contract described in par. (a), the estimated cost of which exceeds $1,000,000, may be let using the design-build construction process.

SB198,3,24 (d) If a county wishes to construct a public work using the design-build construction process, the county shall use a selection process that contains the following procedures:

SB198,4,8 1. The county shall issue a request for proposals from design-build teams by publishing a class 1 notice under ch. 985. The notice shall include a project statement that describes the space needs and design goals for the project, detailed submission requirements, selection procedures, site information, an outline of specifications for the project, a budget for the project, a project schedule, the composition of the selection panel, the approximate amount of the bond that the county will require under par. (e) and whether the county will offer a stipend to unsuccessful design-build teams and, if so, the amount of the stipend.

SB198,4,19 2. Following receipt of the proposals, the county shall select 5 or less design-build teams to participate in the final stage of the selection process. The selection of teams under this subdivision shall be based on factors that include the background, experience and qualifications of the members of the teams; the financial strength and surety capacity of the teams; the quality of the initial proposal; and the past performance and current workload of the teams. The county selection panel that selects the teams under this subdivision for the final selection process under subd. 3. may include design and construction professionals who work for the county or are hired by the county to assist in the selection, members of the county board and representatives from the county entity that will use the facility that is to be constructed under the selection process described in this paragraph.

SB198,5,5 3. The county shall make a final selection from among the teams selected under subd. 2. if the county determines that at least one of the teams selected as a finalist under subd. 2. will be able to construct the public work in a way that is satisfactory to the county. The final selection shall be made following interviews and presentations from the finalists, based on criteria that are published as a class 1 notice under ch. 985. The notice shall state the weight that is given to each criterion. The criteria to be used in making a final selection under this subdivision may include the quality of the proposed design, the construction approach to be used to complete the project, the extent to which a proposal demonstrates compliance with the project statement described under subd. 1., the proposed management plan for the project, the estimated cost of the project and a guaranteed maximum price for the project.

SB198,5,9 (e) If the county selects a design-build team under par. (d) 3. and enters into a contract for the construction of the project, the design-build team shall obtain bonding, in an amount specified by the county, to guarantee completion of the project according to the terms of the contract.

SB198, s. 3 Section 3. 60.47 (2) (a) of the statutes is amended to read:

SB198,5,14 60.47 (2) (a) No town may enter into a public contract with an estimated cost of more than $5,000 but not more than $10,000 $20,000 unless the town board, or a town official or employe designated by the town board, gives a class 1 notice under ch. 985 before execution of that public contract.

SB198, s. 4 Section 4. 60.47 (2) (b) of the statutes is amended to read:

SB198,5,20 60.47 (2) (b) No town may enter into a public contract with a value of more than $10,000 $20,000 unless the town board, or a town official or employe designated by the town board, advertises for proposals to perform the terms of the public contract by publishing a class 2 notice under ch. 985. The town board may provide for additional means of advertising for bids.

SB198, s. 5 Section 5. 60.47 (2m) of the statutes is created to read:

SB198,5,25 60.47 (2m) Design-build contracts. Any public contract under sub. (2), the estimated cost of which exceeds $1,000,000, may be let using the design-build construction process, as defined in s. 59.52 (29) (c) 1. Section 59.52 (29) (d) and (e), as it applies to counties, applies to towns.

SB198, s. 6 Section 6. 60.47 (5) of the statutes is amended to read:

SB198,6,9 60.47 (5) Exception for emergencies and donated materials and labor. This section is optional with respect to public contracts for the repair and construction of public facilities when damage or threatened damage to the facility creates an emergency, as declared by resolution of the town board, that endangers the public health or welfare of the town. This subsection no longer applies when the town board declares that the emergency no longer exists. This section is optional with respect to a public contract if the materials related to the contract are donated or if the labor that is necessary to execute the public contract is provided by volunteers.

SB198, s. 7 Section 7. 61.55 of the statutes is amended to read:

SB198,7,2 61.55 Contracts involving over $10,000; how let; exception. All contracts for public construction, in any such village, exceeding $10,000 $20,000, shall be let by the village board to the lowest responsible bidder in accordance with s. 66.29 insofar as said section may be applicable. If the estimated cost of any public construction exceeds $5,000, but is not greater than $10,000 $20,000, the village board shall give a class 1 notice, under ch. 985, of the proposed construction before the contract for the construction is executed. This provision does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers, and this provision and s. 281.41 are not mandatory for the repair and reconstruction of public facilities when damage or threatened damage thereto creates an emergency, as determined by resolution of the village board, in which the public health or welfare of the village is endangered. Whenever the village board by majority vote at a regular or special meeting declares that an emergency no longer exists, this exemption no longer applies. Any contract for public construction under this section, the estimated cost of which exceeds $1,000,000, may be let using the design-build construction process, as defined in s. 59.52 (29) (c) 1. Section 59.52 (29) (d) and (e), as it applies to counties, applies to villages.

SB198, s. 8 Section 8. 62.03 (1) of the statutes is amended to read:

SB198,7,6 62.03 (1) This subchapter, except ss. 62.071, 62.08 (1), 62.09 (1) (e) and (11) (j) and (k), 62.15 (1m) (b), 62.175 and 62.23 (7) (em) and (he), does not apply to 1st class cities under special charter.

SB198, s. 9 Section 9. 62.15 (1) of the statutes is amended to read:

SB198,7,18 62.15 (1) Contracts; how let; exception for donated materials and labor. All public construction, the estimated cost of which exceeds $10,000 $20,000, shall be let by contract to the lowest responsible bidder; all other public construction shall be let as the council may direct. If the estimated cost of any public construction exceeds $5,000 but is not greater than $10,000 $20,000, the board of public works shall give a class 1 notice, under ch. 985, of the proposed construction before the contract for the construction is executed. This provision does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers. The council may also by a vote of three-fourths of all the members-elect provide by ordinance that any class of public construction or any part thereof may be done directly by the city without submitting the same for bids.

SB198, s. 10 Section 10. 62.15 (1m) of the statutes is created to read:

SB198,7,23 62.15 (1m) Design-build contracts. (a) Any contract for public construction under sub. (1), the estimated cost of which exceeds $1,000,000, may be let using the design-build construction process, as defined in s. 59.52 (29) (c) 1. Section 59.52 (29) (d) and (e), as it applies to counties, applies to cities.

SB198,8,2 (b) Any contract for public construction, the estimated cost of which exceeds $1,000,000, let by a 1st class city may be let using the design-build construction process, as defined in s. 59.52 (29) (c) 1. Section 59.52 (29) (d) and (e), as it applies to counties, applies to 1st class cities.

SB198, s. 11 Section 11. 66.24 (5) (d) of the statutes is amended to read:

SB198,8,14 66.24 (5) (d) Bids. Whenever plans and specifications for any facilities have been completed and approved by the commission and by any other agency which must approve the plans and specifications, and the commission has determined to proceed with the work of the construction thereof, it shall advertise by a class 2 notice under ch. 985, for bids for the construction of the facilities. Contracts for the work shall be let to the lowest responsible bidder, except for contracts awarded under par. (e), or the agency may reject any and all bids and if in its discretion the prices quoted are unreasonable, the bidders irresponsible or the bids informal, it may readvertise the work or any part of it. All contracts shall be protected by such bonds, penalties and conditions as the district shall require. The commission may itself do any part of any of the works.

SB198, s. 12 Section 12. 66.24 (5) (e) of the statutes is created to read:

SB198,8,19 66.24 (5) (e) Design-build contracts. Any contract for public construction under this subsection, the estimated cost of which exceeds $1,000,000, may be let using the design-build construction process, as defined in s. 59.52 (29) (c) 1. Section 59.52 (29) (d) and (e), as it applies to counties, applies to districts.

SB198, s. 13 Section 13. 66.904 (2) (a) of the statutes is amended to read:

SB198,9,5 66.904 (2) (a) Except for a contract awarded under par. (am) and except as provided in par. (b), all work done and all purchases of supplies and materials by the commission shall be by contract awarded to the lowest responsible bidder complying with the invitation to bid, if the work or purchase involves an expenditure of $7,500 $20,000 or more. If the commission decides to proceed with construction of any sewer after plans and specifications for the sewer are completed and approved by the commission and by the department of natural resources under ch. 281, the commission shall advertise by a class 2 notice under ch. 985 for construction bids. All contracts and the awarding of contracts are subject to s. 66.29 , except for a contract awarded under par. (am).

SB198, s. 14 Section 14. 66.904 (2) (am) of the statutes is created to read: