MN HF3572

Municipalities may enter into multiyear professional service contracts for water storage tank engineering, repair, and maintenance through direct negotiation or requests for proposals without standard bidding requirements.

Contracts must include a provision limiting annual municipality payments to the water utility charges received that year and require work oversight by a Minnesota-licensed professional engineer.

If water tanks require repairs to meet federal, state, or local compliance requirements at contract commencement, the contractor is responsible for providing and funding that work, with costs itemized separately and spread over at least three years.

The bidding exception does not apply to contracts for repair, maintenance, or acquisition of materials or services other than professional engineering services if the total estimated contract value exceeds $25,000.

The changes are effective August 1, 2016, and apply to all contracts entered into on or after that date.