Bill Text: FL S0504 | 2020 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local Government Public Construction Works
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2020-03-11 - Laid on Table, refer to CS/CS/HB 279 [S0504 Detail]
Download: Florida-2020-S0504-Introduced.html
Bill Title: Local Government Public Construction Works
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2020-03-11 - Laid on Table, refer to CS/CS/HB 279 [S0504 Detail]
Download: Florida-2020-S0504-Introduced.html
Florida Senate - 2020 SB 504 By Senator Perry 8-00728-20 2020504__ 1 A bill to be entitled 2 An act relating to local government public 3 construction works; amending s. 255.20, F.S.; 4 requiring the governing board of a local government to 5 consider estimated costs of certain projects using 6 generally accepted cost-accounting principles that 7 account for specified costs when the board is making a 8 specified determination; prohibiting a local 9 government from performing a project using its own 10 services, employees, and equipment if the project 11 requires an increase in the number of government 12 employees or an increase in certain capital 13 expenditures; requiring that a local government that 14 performs projects using its own services, employees, 15 and equipment disclose the actual costs of the project 16 after completion to the Auditor General; requiring 17 that the Auditor General review such disclosures as 18 part of his or her routine audits of local 19 governments; amending s. 336.41, F.S.; requiring 20 estimated total construction project costs for certain 21 projects to include specified costs; providing an 22 effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Paragraph (c) of subsection (1) of section 27 255.20, Florida Statutes, is amended to read: 28 255.20 Local bids and contracts for public construction 29 works; specification of state-produced lumber.— 30 (1) A county, municipality, special district as defined in 31 chapter 189, or other political subdivision of the state seeking 32 to construct or improve a public building, structure, or other 33 public construction works must competitively award to an 34 appropriately licensed contractor each project that is estimated 35 in accordance with generally accepted cost-accounting principles 36 to cost more than $300,000. For electrical work, the local 37 government must competitively award to an appropriately licensed 38 contractor each project that is estimated in accordance with 39 generally accepted cost-accounting principles to cost more than 40 $75,000. As used in this section, the term “competitively award” 41 means to award contracts based on the submission of sealed bids, 42 proposals submitted in response to a request for proposal, 43 proposals submitted in response to a request for qualifications, 44 or proposals submitted for competitive negotiation. This 45 subsection expressly allows contracts for construction 46 management services, design/build contracts, continuation 47 contracts based on unit prices, and any other contract 48 arrangement with a private sector contractor permitted by any 49 applicable municipal or county ordinance, by district 50 resolution, or by state law. For purposes of this section, cost 51 includes the cost of all labor, except inmate labor, and the 52 cost of equipment and materials to be used in the construction 53 of the project. Subject to the provisions of subsection (3), the 54 county, municipality, special district, or other political 55 subdivision may establish, by municipal or county ordinance or 56 special district resolution, procedures for conducting the 57 bidding process. 58 (c) The provisions of this subsection do not apply: 59 1. If the project is undertaken to replace, reconstruct, or 60 repair an existing public building, structure, or other public 61 construction works damaged or destroyed by a sudden unexpected 62 turn of events such as an act of God, riot, fire, flood, 63 accident, or other urgent circumstances, and such damage or 64 destruction creates: 65 a. An immediate danger to the public health or safety; 66 b. Other loss to public or private property which requires 67 emergency government action; or 68 c. An interruption of an essential governmental service. 69 2. If, after notice by publication in accordance with the 70 applicable ordinance or resolution, the governmental entity does 71 not receive any responsive bids or proposals. 72 3. To construction, remodeling, repair, or improvement to a 73 public electric or gas utility system if such work on the public 74 utility system is performed by personnel of the system. 75 4. To construction, remodeling, repair, or improvement by a 76 utility commission whose major contracts are to construct and 77 operate a public electric utility system. 78 5. If the project is undertaken as repair or maintenance of 79 an existing public facility. For the purposes of this paragraph, 80 the term “repair” means a corrective action to restore an 81 existing public facility to a safe and functional condition and 82 the term “maintenance” means a preventive or corrective action 83 to maintain an existing public facility in an operational state 84 or to preserve the facility from failure or decline. Repair or 85 maintenance includes activities that are necessarily incidental 86 to repairing or maintaining the facility. Repair or maintenance 87 does not include the construction of any new building, 88 structure, or other public construction works or any substantial 89 addition, extension, or upgrade to an existing public facility. 90 Such additions, extensions, or upgrades shall be considered 91 substantial if the estimated cost of the additions, extensions, 92 or upgrades included as part of the repair or maintenance 93 project exceeds the threshold amount in subsection (1) and 94 exceeds 20 percent of the estimated total cost of the repair or 95 maintenance project using generally accepted cost-accounting 96 principles that fully account for all costs associated with 97 performing and completing the work, including employee 98 compensation and benefits, equipment cost and maintenance, 99 insurance costs, and materials. An addition, extension, or 100 upgrade shall not be considered substantial if it is undertaken 101 pursuant to the conditions specified in subparagraph 1. Repair 102 and maintenance projects and any related additions, extensions, 103 or upgrades may not be divided into multiple projects for the 104 purpose of evading the requirements of this subparagraph. 105 6. If the project is undertaken exclusively as part of a 106 public educational program. 107 7. If the funding source of the project will be diminished 108 or lost because the time required to competitively award the 109 project after the funds become available exceeds the time within 110 which the funding source must be spent. 111 8. If the local government competitively awarded a project 112 to a private sector contractor and the contractor abandoned the 113 project before completion or the local government terminated the 114 contract. 115 9. If the governing board of the local government complies 116 with all of the requirements of this subparagraph, conducts a 117 public meeting under s. 286.011 after public notice, and finds 118 by majority vote of the governing board that it is in the 119 public’s best interest to perform the project using its own 120 services, employees, and equipment. The public notice must be 121 published at least 21 days before the date of the public meeting 122 at which the governing board takes final action. The notice must 123 identify the project, the components and scope of the work, and 124 the estimated cost of the project using generally accepted cost 125 accounting principles that fully account for all costs 126 associated with performing and completing the work, including 127 employee compensation and benefits, equipment cost and 128 maintenance, insurance costs, and materials. The notice must 129 specify that the purpose for the public meeting is to consider 130 whether it is in the public’s best interest to perform the 131 project using the local government’s own services, employees, 132 and equipment. Upon publication of the public notice and for 21 133 days thereafter, the local government shall make available for 134 public inspection, during normal business hours and at a 135 location specified in the public notice, a detailed itemization 136 of each component of the estimated cost of the project and 137 documentation explaining the methodology used to arrive at the 138 estimated cost. At the public meeting, any qualified contractor 139 or vendor who could have been awarded the project had the 140 project been competitively bid shall be provided with a 141 reasonable opportunity to present evidence to the governing 142 board regarding the project and the accuracy of the local 143 government’s estimated cost of the project. In deciding whether 144 it is in the public’s best interest for the local government to 145 perform a project using its own services, employees, and 146 equipment, the governing board must consider the estimated cost 147 of the project using generally accepted cost-accounting 148 principles that fully account for all costs associated with 149 performing and completing the work, including employee 150 compensation and benefits, equipment costs and maintenance, 151 insurance costs, and the cost of materials, and the accuracy of 152 the estimated cost in light of any other information that may be 153 presented at the public meeting and whether the project requires 154 an increase in the number of government employees or an increase 155 in capital expenditures for public facilities, equipment, or 156 other capital assets. If the project requires an increase in the 157 number of government employees or an increase in such capital 158 expenditures, the local government may not perform the project 159 using its own services, employees, and equipment. The local 160 government may further consider the impact on local economic 161 development, the impact on small and minority business owners, 162 the impact on state and local tax revenues, whether the private 163 sector contractors provide health insurance and other benefits 164 equivalent to those provided by the local government, and any 165 other factor relevant to what is in the public’s best interest. 166 A local government that performs projects using its own 167 services, employees, and equipment must disclose the actual 168 costs of the project after completion to the Auditor General. 169 The Auditor General shall review such disclosures as part of his 170 or her routine audits of local governments. 171 10. If the governing board of the local government 172 determines upon consideration of specific substantive criteria 173 that it is in the best interest of the local government to award 174 the project to an appropriately licensed private sector 175 contractor pursuant to administrative procedures established by 176 and expressly set forth in a charter, ordinance, or resolution 177 of the local government adopted before July 1, 1994. The 178 criteria and procedures must be set out in the charter, 179 ordinance, or resolution and must be applied uniformly by the 180 local government to avoid awarding a project in an arbitrary or 181 capricious manner. This exception applies only if all of the 182 following occur: 183 a. The governing board of the local government, after 184 public notice, conducts a public meeting under s. 286.011 and 185 finds by a two-thirds vote of the governing board that it is in 186 the public’s best interest to award the project according to the 187 criteria and procedures established by charter, ordinance, or 188 resolution. The public notice must be published at least 14 days 189 before the date of the public meeting at which the governing 190 board takes final action. The notice must identify the project, 191 the estimated cost of the project, and specify that the purpose 192 for the public meeting is to consider whether it is in the 193 public’s best interest to award the project using the criteria 194 and procedures permitted by the preexisting charter, ordinance, 195 or resolution. 196 b. The project is to be awarded by any method other than a 197 competitive selection process, and the governing board finds 198 evidence that: 199 (I) There is one appropriately licensed contractor who is 200 uniquely qualified to undertake the project because that 201 contractor is currently under contract to perform work that is 202 affiliated with the project; or 203 (II) The time to competitively award the project will 204 jeopardize the funding for the project, materially increase the 205 cost of the project, or create an undue hardship on the public 206 health, safety, or welfare. 207 c. The project is to be awarded by any method other than a 208 competitive selection process, and the published notice clearly 209 specifies the ordinance or resolution by which the private 210 sector contractor will be selected and the criteria to be 211 considered. 212 d. The project is to be awarded by a method other than a 213 competitive selection process, and the architect or engineer of 214 record has provided a written recommendation that the project be 215 awarded to the private sector contractor without competitive 216 selection, and the consideration by, and the justification of, 217 the government body are documented, in writing, in the project 218 file and are presented to the governing board prior to the 219 approval required in this paragraph. 220 11. To projects subject to chapter 336. 221 Section 2. Subsection (4) of section 336.41, Florida 222 Statutes, is amended to read: 223 336.41 Counties; employing labor and providing road 224 equipment; accounting; when competitive bidding required.— 225 (4) All construction and reconstruction of roads and 226 bridges, including resurfacing, full scale mineral seal coating, 227 and major bridge and bridge system repairs, to be performed 228 utilizing the proceeds of the 80-percent portion of the surplus 229 of the constitutional gas tax shall be let to contract to the 230 lowest responsible bidder by competitive bid, except for: 231 (a) Construction and maintenance in emergency situations;,232and233 (b) In addition to emergency work, construction and 234 reconstruction, including resurfacing, mineral seal coating, and 235 bridge repairs, having a total cumulative annual value not to 236 exceed 5 percent of its 80-percent portion of the constitutional 237 gas tax or $400,000, whichever is greater;,and 238 (c) Construction of sidewalks, curbing, accessibility 239 ramps, or appurtenances incidental to roads and bridges if each 240 project is estimated in accordance with generally accepted cost 241 accounting principles to have total construction project costs 242 of less than $400,000 or as adjusted by the percentage change in 243 the Construction Cost Index from January 1, 2008, 244 245 for which the county may utilize its own forces. Estimated total 246 construction project costs must include all costs associated 247 with performing and completing the work, including employee 248 compensation and benefits, equipment costs and maintenance, 249 insurance costs, and the cost of materials. However, if, after 250 proper advertising, no bids are received by a county for a 251 specific project, the county may use its own forces to construct 252 the project, notwithstanding the limitation of this subsection. 253 Nothing in this section shall prevent the county from performing 254 routine maintenance as authorized by law. 255 Section 3. This act shall take effect July 1, 2020.