2019 HOUSE POLITICAL SUBDIVISIONS

HB 1360

2019 HOUSE STANDING COMMITTEE MINUTES

Political Subdivisions Committee Prairie Room, State Capitol

1/17/2019 HB 1360

Job # 31006

☐ Subcommittee

☐ Conference Committee

Committee Clerk: Carmen Hickle

Explanation or reason for introduction of bill/resolution: Relating to bid requirements for park districts; and to declare an emergency

Minutes: 1,2,3,4,5

Chairman J. Dockter: Opens the hearing on HB 1360. Rep. Bosch: (Handout #1,2) Introduced HB 1360 and read his testimony. Pointed out a proposed amendment from OMB that suggests consistent language between another bill the school districts have that is similar to this. Rep. Longmuir: Why the emergency measure? Rep. Bosch: There are some purchases and maintenance contracts that are coming up. Rep. Ertelt: If this were to be changed so you were exempt if you were purchasing equipment is it possible that the work that needs to be completed could be broke up into multiple stages to avoid the bidding process? Rep. Bosch: Generally, it’s not work associated with this but buying products. Rep. Ertelt: What all falls under equipment? Rep. Bosch: The amendment we take equipment out and change it to the definition that came from OMB. Chairman J. Dockter: It’s attached to Century Code 54-44.04. Rep K. Koppelman: You have the phrase “in an emergency situation” is that defined anywhere?

House Political Subdivisions Committee HB1360 1/17/2019 Page 2

Rep. Bosch: I believe it is defined in the public improvement statute. (6:08) Dana Schaar Jahner: (Handout #3) Executive Director of ND Recreation and Park Association (NDRPA) She read her testimony. (7:55) Wayne Munson: Bismarck Board of Park Commissioner. (Handout #4) He read his testimony. Sherry Neas: Office of Management and Budget: (Handout #5) We support this bill and the amendment. In looking at the original language it was narrowed to the purchase of equipment. In North Dakota state procurement law there is a section that was established in 2003. OMB can either participate in or organize cooperative purchasing. OMB has a staff of procurement professionals we find good service equipment supplies of common use competitively bid that and then it’s made available for government in ND. OMB must have a website for government bidding opportunities and also maintain the state bidders list. Some of the problems we have had in the past was since they were mandated to go out for bid at $25,000 the parks districts were not able to use our cooperative purchasing. Rep. Hatlestad: How do you accumulate quantities that you are going to have to bid for? Ms. Neas: The state cooperative purchasing law is it lets OMB establish contracts that are open ended. Rep. Hatlestad: If I am going to bid on a state contract but don’t know quantity doesn’t that give you a less favorable price? Ms. Neas: If you had defined requirements than you can leverage it. There is always a projection of the estimated quantities. Rep K. Koppelman: What constitutes an emergency and where is that definition? Ms. Neas: There is different chapter of law that govern the different types of procurement. The scope of OMB’s authority is goods, services, and IT. In OMB law there is a definition of emergency purchase. This law governs park boards, so the question is what allows an emergency purchase under the park board law?

House Political Subdivisions Committee HB1360 1/17/2019 Page 3

Rep K. Koppelman: Maybe our intern can look into that.

Randy Bina: Executive Director of Bismarck Parks and Recreation District. In chapter 48-01.2 there is a definition of emergency situations.

Rep K. Koppelman: Do you know if anything in this chapter references that?

Mr. Bina: We are proposing in this new bid threshold to include an emergency provision.

Chairman J. Dockter: Page 2 line 14 it gives the definition of an emergency situation.

21:45 Chairman J. Dockter: Reopened the hearing for committee work.

Rep. Longmuir: Made a motion to accept the amendment.

Rep. Johnson: Second the motion. Rep. Toman: We are removing the requirement for purchasing equipment cooperative purchase is that equipment only?

Rep K. Koppelman: I think the idea was equipment would fit into OMB description.

Chairman J. Dockter: This would allow the park districts to work with OMB for more purchasing power to go through their procurement cooperative purchasing process.

Rep. Johnson: If we eliminate equipment would that regard equipment?

Chairman J. Dockter: My understanding is this would expand and allow them to work with OMB.

Ms. Neas: The change would make it identical to the school board which allows you to not have to do competitive bidding process if you make a cooperative purchase through OMB. Remember public improvement is its own thing, concessions is its own thing, there are other laws that still apply to park districts.

House Political Subdivisions Committee HB1360 1/17/2019 Page 4

During the testimony there was reference to the public improvement chapter of law, and that law does have a definition of what an emergency is. Rep. Johnson: Is that the goal of the amendment to broaden the scope? Chairman J. Dockter: Yes, to allow them to work with OMB. Rep K. Koppelman: The intent of the amendment is to harmonize this with the other chapter to ensure continuity in state law. Rep. Johnson: If you define this specifically and the park board determines an emergency situation are we enabling them to determine an emergency situation when no other portion of the statute allows that? Rep K. Koppelman: Do you see that as too broad of a license to give to park boards? Do you think it needs to be more tightly defined? Rep. Johnson: I don’t know. Overall this is beneficial to the park districts at $50,000. There is a lot of unanswered questions if we say a park board can declare an emergency situation without limitations. Rep. Hatlestad: In this particular case we are talking about the park districts and they would have the authority to declare an emergency. There is no way we can define everything for everybody. Chairman J. Dockter: Agreed with Rep. Hatlestad.

Vice Chairman Pyle: ND is one of the only 14 states that the park board is a separate taxing entity and has nothing to do with the city.

Voice vote to adopt the amendment: Carried

Rep. Hatlestad: Made a do pass as amended motion.

Rep. Adams: Second the motion. Vote: yes 10, no 3, absent 1. Rep. Hatlestad: Will carry HB 1360. Chairman J. Dockter: Closed the hearing.

Dfr lf t7/ti 19.0086.03001 Title.04000

Prepared by the Legislative Council staff for Representative Bosch

January 17, 2019

PROPOSED AMENDMENTS TO HOUSE BILL NO. 1360

Page 1, line 13, remove "when the contract is for the purchase of equipment"

Page 1, line 14, replace "through" with "for cooperative purchases with"

Renumber accordingly

Page No. 1 19.0086.03001

2019 HOUSE STANDING COMMITTEE ROLL CALL VOTES

BILL/RESOLUTION NO. / 3 �D

House Political Subdivisions

D Subcommittee

Amendment LC# or Description: J q . 0 O'Z lo , 0 3 0 0 \

Recommendation: �dopt Amendment

Date: l - I 1 - / 'f Roll Call Vote #: \

Committee

D Do Pass D Do Not Pass D As Amended

D Without Committee Recommendation D Rerefer to Appropriations

D Place on Consent Calendar Other Actions: D Reconsider D

Motion Made By j2 "(· J.. o "7 �conded By f2 e f , (} a J.., ..,. S o �

Representatives Chairman Dockter Vice Chairman Pyle Rep. Ertelt Rep. Fegley Rep. Hatlestad Rep. Johnson Rep. Koppelman Rep. Lonamuir Rep. Maarum Rep. Simons Rep. Toman Rep. Strinden

Total

Absent

(Yes)

Floor Assignment

Yes No

No

If the vote is on an amendment, briefly indicate intent:

Representatives Yes No Rep. Adams Rep. Guaaisberg

2019 HOUSE STANDING COMMITTEE ROLL CALL VOTES

BILL/RESOLUTION NO. /3 l, 0 House Political Subdivisions

Amendment LC# or Description:

D Subcommittee

Date: / -17 -f'j Roll Call Vote #: �

Committee

-----------------------Recommendation: D Adopt Amendment

z:1' Do Pass D Do Not Pass D Without Committee Recommendation _%As Amended D Rerefer to Appropriations D Place on Consent Calendar

Other Actions: D Reconsider D

Motion Made By {2 ¥· /.iJl-t S/4).seconded By {2.¥ /tel�

Representatives Chairman Dockter Vice Chairman Pyle Rep. Ertelt Rep. Fegley Rep. Hatlestad Rep. Johnson Rep. Koppelman Rep. Longmuir Rep. Magrum Rep. Simons Rep. Toman Rep. Strinden

Total (Yes)

Absent

Floor Assignment

JO \

Yes No / /

£ t / ,, /. /� // /

/ //

� / /

No

If the vote is on an amendment, briefly indicate intent:

Representatives Yes..,. No Rep. Adams / Rep. Guggisberg /

3

Com Standing Committee Report January 17, 2 019 2:12 PM

Module ID: h_stcomrep_09_012 Carrier: Hatlestad

Insert LC: 19.008 6.03001 Title: 04000

REPORT OF STANDING COMMITTEE HB 1360: Political Subdivisions Committee (Rep. Dockter, Chairman) recommends

AMENDMENTS AS FOLLOWS and when so amended, recommends DO PASS (10 YEAS, 3 NAYS, 1 ABSENT AND NOT VOTING). HB 1360 was placed on the Sixth order on the calendar.

Page 1, line 13, remove "when the contract is for the purchase of equipment"

Page 1, line 14, replace "through" with "for cooperative purchases with"

Renumber accordingly

(1) DESK (3) COMMITTEE Page 1 h_stcomrep_09_012

2019 SENATE POLITICAL SUBDIVISIONS

HB 1360

2019 SENATE STANDING COMMITTEE MINUTES

Political Subdivisions Committee Red River Room, State Capitol

HB 1360 2/28/2019

Job # 33000

☐ Subcommittee

☐ Conference Committee

Committee Clerk: Mary Jo Wocken

Explanation or reason for introduction of bill/resolution:

Relating to bid requirements for park districts; and to declare an emergency.

Minutes: Written attachment #1 Rep. Glenn Bosch Written attachment #2 Dana Schaar Jahner Written attachment #3 Brian Beattie p1-3

Chairman Burckhard opened the hearing on HB1360. All senators are present. Representative Glenn Bosch, represent Bismarck’s District 30, introduced the bill. Written attachment #1. (:36-2:46) Senator J. Lee: I just was wondering if you had any, and yes Senator Anderson said there were four versions and we started with 3000 so it is only one amendment. The addition of the cooperative purchases, so it is just enabling buying off the state procurement, is that right? Representative Glenn Bosch: Yes, that language actually came from the state purchasing. There’s been a number of bills like this that had to do with school districts and they just had a general language that they wanted to use that was consistent with all the other bills that were like this, this session. So that is where that came from. Dana Schaar Jahner, Executive Director of the North Dakota Recreational and Park Association, represent park districts across the state of North Dakota. I am here in support of HB1360. Written attachment #2. Mr. Brian Beattie, President of the Bismarck Board of Park Commissioners, Bismarck Park and Rec District. Written attachment #3, pg. 1-3. (5:53-8:10) Chairman Burckhard: closed the hearing on HB1360. Senator J. Lee made a motion for a do pass on HB1360. Senator Diane Larson, moved a 2nd.

Senate Political Subdivisions Committee HB 1360 February 28, 2019 Page 2

Committee discussion Senator Dotzenrod: The bill says on Line 14, it’s got the $50,000 in there. So bids would come in that our projects that are less than that, like $30,000. Then would there be no requirement under law? They could act just by board action, no bids required, is that how I understand that? Chairman Burckhard: You said Line 14. Senator Dotzenrod: Line 14 says if it exceeds $50,000 it must be awarded to the lowest bidder. What other requirements that are imposed on a bid below $50,000? I guess that is my question. Mr. Randy Bina: Executive Director with the Bismarck Parks and Recreation District. What this bill does it sets a bidding threshold that increases it to $50,000. However, I am aware and it is my understanding that most of the park districts in the state. There boards establish internal policies to purchase. Just like the one President Beattie just testified in with our testimony we had an attachment that outlined our internal process. So, internally in Bismarck what we do is anything that is over $5000 we have to get quotes. I think it is $5000 to $10,000 we get two quotes, anything over $10,000 we get sealed quotes. We just don’t put it in the paper but we do get multiple sealed quotes when we can from the vendors. We have found that to be very helpful. I don’t have the number with me today, but going through a quote and a bidding process our district tracts it and we save significant dollars. Senator Dotzenrod: That example that you gave there of when you require some bids and it is below a certain dollar amount. Those are internal to your park district rules that you’ve set for yourselves. Evidently there isn’t any requirement in statute here in state law that would impose any requirements like that on purchases less than $50,000, if this bill were adopted. Mr. Randy Bina: That is correct. But again I would emphasize that especially the larger park districts I believe most of them have internal policies for purchasing that are below the state bid threshold. Senator Dotzenrod: I just want to make it clear that we are essentially extending our sense of good judgment and good faith that the boards are capable and qualified and understand enough. We are not going to try and impose from the state. It reaches a point where at some point the state has to say we have to give the subdivisions of the state a little bit of leeway. We can’t control every aspect of every transaction out of Bismarck; and so it does appear that below $50,000 the state would extend to the park districts their own sense that their good judgment will apply. Mr. Randy Bina: That is correct. Chairman Burckhard: So we really don’t micro-manage them, alright. We have a do pass motion, from Senator Lee, and a second from Senator Larson. Roll call vote: 6-0-0 Carrier: Senator Diane Larson

2019 SENATE STANDING COMMITTEE ROLL CALL VOTES

BILL/RESOLUTION NO./f. $./.J�(}

Senate Political Subdivisions

D Subcommittee

Amendment LC# or Description:

Date: ;J..lP-19 Roll Call Vote#: /

Committee

----------------------Recommendation: D �dopt Amendment

rrfDo Pass D Do Not Pass D As Amended D Place on Consent Calendar

Other Actions: D Reconsider

D Without Committee Recommendation D Rerefer to Appropriations

D

Motion Made By )tn -� SecondedBy ,A,�� Senators Yes No Senators Yes No

Chair Randv Burkhard V Sen. Jim Dotzenrod Vice chair Howard Anderson Sen. Diane Larson Sen. Judv Lee Sen. Jordan Kannianen 'i..

Total

Absent

(Yes) � No -------------- ----------------

Floor Assignment ; '

If the vote is on an amendment, briefly indicate intent:

Com Standing Committee Report February 28 , 2 019 1 :05PM

Module ID: s_stcomrep_35_008 Carrier: D. Larson

REPORT OF STANDING COMMITTEE HB 1360, as engrossed: Political Subdivisions Committee (Sen. Burckhard, Chairman)

recommends DO PASS (6 YEAS, 0 NAYS, 0 ABSENT AND NOT VOTING). Engrossed HB 1360 was placed on the Fourteenth order on the calendar.

(1) DESK (3) COMMITTEE Page 1 s_stcomrep_35_008

2019 TESTIMONY

HB 1360

P-t

ff 0 I 3f..po Introduce HB-1360 t-17 -\7

Chairman Dockter and members of the Political Subdivisions committee, for the

record I'm Glenn Bosch, representing Bismarck's District 30. I'm here today to

introduce HB-1360.

Over the last several sessions, legislation has passed that modifies biding

requirements. The changes made served a couple of different purposes but

typically they changed the dollar amount that would trigger when a more formal

bidding process would take place.

In 2017 the public improvement construction threshold requiring a formal bid was

increased from $100k to $1S0K. In 2015, the same statute was amended to raise

the PROJECT amount FROM $100K-$1S0K that required plans from an

architect/engineer to be created for a project.

Today at the State level, purchases under $SOK are classified as small purchases

and only require informal phone quotes from three vendors. Projects between $S0K-$100K, classified as an informal purchase, require 3 written bids and

purchases need to reach the $100K level to require a formal sealed bidding

process.

At the same time, chapter 48-01.2 requires that all Park District contracts

exceeding only $2SK be awarded to the lowest responsible bidder after

advertisement in the official newspaper for two successive weeks. The $2SK

threshold was last revised in 2009.

The bill before you amends current Park District purchasing statutes and provides

additional flexibility during the procurement process. Specifically, it would ....

1) Increase the contract amount that requires the formal bidding process from $2SK to $SOK.

2) Allow a Park District the ability to purchase from state purchasing

agreements.

3) Allow a Park district the ability to declare an emergency.

Other will testify on how these changes will positively impact their specific

operations.

With that I'll stand for any questions.

•

•

•

19.0086.03001 Title.

Prepared by the Legislative Council staff for Representative Bosch I _ \ 1 _ \ � January 16, 2019 \

PROPOSED AMENDMENTS TO HOUSE BILL NO. 1360

Page 1, line 13, remove "when the contract is for the purchase of equipment"

Page 1, line 14, replace "through" with "cooperative purchases with"

Renumber accordingly

Page No. 1 19.0086.03001

#3 rf6,'3fou

' i - \7_

House Political Subdivisions Committee

Support for HB 1360 Thursday, January 17, 2019

,-

Chairman Dockter and Members of the Committee, my name is Dana Schaar Jahn er,

and I am executive director of the North Dakota Recreation and Park Association (NDRPA).

NDRPA represents more than 700 members across the state, including park board

members and park district staff, and works to advance parks, recreation and conservation

for an enhanced quality of life in North Dakota. We are here in support of House Bill 1360.

Park districts across North Dakota support this bid limit increase because periodic

adjustments to limits established in Century Code are necessary as the cost of doing

business continues to rise. As NDRPA discussed this issue with members across the state,

small park districts shared the desire of their park board commissioners to buy local. By

raising the bid limit on smaller purchases, this allows local businesses to be more

competitive and therefore keep dollars in those communities.

The emergency clause also provides parity with many other existing bidding

requirements in Century Code, providing locally elected park boards the ability to mange

emergency situations to ensure the safety of a park district's facilities.

Finally, explicit authority for park districts to utilize Office of Management and

Budget procurement services creates efficiencies and cost-savings for local taxpayers.

NDRPA asks for a do pass on HB 1360. Thank you.

1605 EAST CAPITOL AVE PO BOX 1091 BISMARCK, NORTH DAKOTA 58502 701.355.4458 www.ndrpa.com

BISMARCK PARKS AND RECREATION DISTRICT Est. 1927

Testimony of Wayne Munson, Commissioner Bismarck Board of Park Commissioners Bismarck Parks and Recreation District House Political Subdivisions Committee Support for HB 1360 Thursday, January 17, 2019

Chairman Dockter and Members of the Committee, my name is Wayne Munson and I

am a Commissioner on the Bismarck Board of Park Commissioners, Bismarck Parks and

Recreation District. Our mission is: Working with the community to provide residents

and visitors with the highest quality park, program, facility and event experience.

I am here today on behalf Bismarck Parks and Recreation District (BPRD) to support

House Bill 1360. I support raising the bid requirement from $25,000 to $50,000 for the

following reasons:

• It has been 10 years since NDCC 40-49-14 was amended to increase the bid

requirement from $10,000 to its current $25,000 threshold. As we all know,

$25,000 does not buy as much as it did 10 years ago.

• Policies to determine purchasing practices below the state bid requirement are

established locally by Park Boards. BPRD's purchasing policies require written

quotes and multiple sealed price quotes for various purchasing thresholds as low

as $5,000. See Attachment 1.

• Purchasing thresholds by 0MB Guidelines for formal bidding are at much higher

levels than the current threshold for Park Districts. See Attachment 2.

• This bill also provides for the same emergency exception that is currently

outlined in 48-01.2, Public Improvement Bids and Contracts that applies to

construction projects with a cost in excess of $150,000. One example is a fire

that occurred in one of our buildings when time was of the essence to get the

building back to being fully operational. Contractors provided cost estimates that

were reviewed and approved by the insurance company. However, since BPRD

was responsible for paying the contractors, the repairs were delayed because the

costs exceeded $25,000 requiring bids to be obtained. Having the ability to have

the board declare an emergency would have allowed the repairs to be completed

sooner.

• HB1360 also clarifies that purchases of equipment may be made through the

office of management and budget as provided in chapter 54-44.4, State

Purchasing Practices, without requiring park districts to separately advertise for

bids.

BPRD supports a do pass recommendation on HB 1360. Are there any questions?

Thank you.

400 East Front Avenue I Bismarck, ND 58504 I P: (701) 222-6455 F: (701) 221-6838 I bisparks@bisparks.or� I www.bisparks.or�

,J iJ } ?) (p 0 ff 1 - I 7-19

Attachment 1

BISMARCK PARKS AND RECREATION DISTRICT vl.t-/ GENERAL OPERATING PROCEDURES y

PURCHASING POLICY

A purchasing policy has been developed for the purpose of obtaining the best possible price of goods and services for the Park District while ensuring compliance with state law. The purchasing policy provides the contractors and vendors an equitable method of providing the goods and services on a competitive basis and avoids conflicts of interest by staff, vendors or contractors. It is recommended to obtain quotes if the goods or services are common items and it would be in the Park District's best interest to obtain competitive quotes.

1. For purchases of $5,000 to $10,000 it is required to obtain written quotes. Written quotes must be documented with date, name of vendor, vendor's contact person and price. The manager will retain copies for one year.

2. A purchase of $10,001 to $25,000 requires written specifications and multiple sealed price quotes must be obtained in writing. Written quotes must document the date, name of vendor, vendor's contact person and price. All price quotes must be submitted to the Division Director and Finance Director for review and approval. The manager will retain one copy on location and a copy will be filed in the main office. Price quotes are to be kept for one year.

3. In the event only one price quote is available, documentation explaining the reason for one quote is necessary.

4. In the case where timeliness is of essence, the Executive Director may waive the price quotes requirements noted above. The waiver must be in writing documenting the reason for the waiver. All waivers must be communicated with the Park Commissioners.

Approved 3/19/2015

f-16 / 3lPO Attachment 2 ( - I 7 - \ '1

Purchasing Thresholds Effective July 1, 201 8

NOUS employees must follow SBHE policies and NOUS procedures. State Agencies, excluding Higher Education institutions, must follow 0MB auidelines.

Level Competition Requirements Documentation Maintenance ReQuirement

Level 1 Obtain at least one fair and reasonable quote. NOUS: Documentation not required "Micro" Purchase Note: Equipment and software must be added to Alternate Procurement form not

inventory if $5,000 or greater. (N.D.C.C. § 54-27-21 required if multiple quotes not Less than Fixed Asset Minimum Reporting Value) solicited $10,000

0MB: Rotate vendors solicited on an equitable basis 0MB: Document vendors solicited, (N.D.A.C. § 4-12-08-02) quotes received, and award

determination. 0MB: State agencies (excluding Higher Education institutions) must submit printing purchase requests $5,000 and over to 0MB State Procurement.

Level 2 Solicit informal quotes/bids or proposals from at least Documentation is required. Small three vendors, or post to SPO Online with appropriate Purchase state bidders list. May send to additional vendors. Alternate Procurement form

required if competition is not At least 0MB: ITD must review IT purchases over $25,000. solicited from at least three $10,000 Contact itdprocurement@nd.gov vendors. but less than The form is not required if three $50,000 vendors are solicited and fewer

than three bids or proposals are received.

Level3 Solicit informal bids or proposals using SPO Online Documentation is required Informal with appropriate state bidders list. May send to Written additional vendors. Alternate Procurement form Purchase required if:

0MB: ITD must review IT purchases over $25,000. 1. Competition is not solicited. At least Contact itdprocurement@nd.gov 2. SPO Online is not used. $50,000 3. 0MB: Competition is limited. but less than $100,000 Level4 Must be purchased using formal sealed bids or Documentation is required. Formal Request for Proposal (RFP). Solicitations must be Purchase posted using SPO Online with appropriate state Alternate Procurement required if:

bidders list. May send to additional bidders. 1. Competition is not solicited, or $100,000 competition is limited. and over 0MB: ITD must review IT purchases over $25,000. 2. SPO Online is not used.

Contact itdprocurement@nd.gov 3. 0MB: Competition is Limited.

Questions? Contact 0MB State Procurement at infos12o@nd.gov or 701-3 28-17 26

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("', ' . , 19�0086.03000

Sixty-sixth Legislative Assembly of North Dakota

HOUSE BILL NO. 1360

Introduced by

Representatives Bosch, Lefor, Nathe, Sanford

Senators Bakke, Bekkedahl, D. Larson, Oban

\ Cl Q...

A BILL for an Act to amend and reenact sectio�0-49-14 of t e North Dakota Century Code,

relating to bid requirements for: park distri�t� an�re an emergency. - --BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:

SECTION 1. AMENDMENT. Section 40-49-14 of the North Dakota Century Code is

amended and reenacted as follows:

40-49-14. When yea and nay vote taken - LettingAwarding contracts - Debt limit -

Bills, claims, and demands against board.

8 .:L. Yea and nay votes must be taken on all propositions involving the expenditure of

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

money, levying of taxes, or the issuance of bonds or certificates of indebtedness. c v Approval of an expenditure of money must be recorded in the record of the board's ,.,. u'

proceedings and is sufficient to indicate approval without requiring the members to (.-sign or initial the voucher or order for p�yment. Ex¥ept as provided in chapter 48-01.2,

� r co �-'\+; H V"' .-1...-1"c._ir 5-

in an emergency situation. or wlsl -tAe-eontractis for the--purchase-ef-effl:Hf)ffient ?

through the office of management and budget as provided in chapter 54-44.4. all

contracts exceeding twenty fi•tefifty thousand dollars must be tetawarded to the lowest

responsible bidder after advertisement in the official newspaper of the municipality

once each week for two successive weeks. The board may reject any or all bids. All

contracts must be in writing and must be signed by the president of the board or a

designated representative and unless so executed, they shall be void. The debt of a

park district may not exceed one percent of the taxable property within the district

according to the last preceding assessment. No bill, claim, account, or demand

against the district may be audited, allowed, or paid until a full, written, itemized

statement has been filed with the governing body or unless otherwise authorized by

the governing body pursuant to contract or other action. The governing body may

Page No. 1 19.0086.03000

Sixty-sixth Legislative Assembly

HB13e,D _/-11-\l

1 require the filing of any additional information which it may deem necessary to the

2 proper understanding and audit of any claim or account and it may require the filing of

3 a sworn statement in such form as it may prescribe or as noted below:

4 CERTIFICATE

5 I do hereby certify that the within bill, claim, account, or demand is just and true; that the

6 money therein charged was actually paid for the purposes therein stated; that the services

7 therein charged were actually rendered and of the value thereiri charged; and that no part of

8 such bill, claim, account, or demand has been paid; and that the goods therein charged

9 were actually delivered and were of the value charged.

10 Sign here ____________ _

11

12

13

If signed for a firm or company,

show authority on this line.

14 2.. As used in this section. "emergency situation" means a sudden or unexpected

15 occurrence that requires immediate action to protect public health. safety, or property.

16 SECTION 2. EMERGENCY. This Act is declared to be an emergency measure.

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Page No. 2

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19.0086.03000

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15.1-09-33.2. Continuing education - Payment - Directives. A school board's right to reimburse teachers for the cost of continuing education activities

undertaken in connection with the No Child Left Behind Act of 2001. may not be contractually curtailed.

15.1-09-33.3. Student teachers - Provision of stipend. The board of a school district may provide a stipend to a student teacher assigned to a

school in the district.

15.1-09-33.4. Student misconduct - Prohibition against participation in extracurricular activities.

1. The board of a school district shall prohibit a student from participating in any extracurricular activity if : a. The student has pied guilty to or been convicted of a criminal offense and

sentenced under section 12.1-32-02:1 or pied guilty or been convicted of an offense specified in subsection 1 of section 12.1-32-09.1;

b. The student has: (1) An order prohibiting contact issued against the student at the request of

another student or employee of the school under section 12.1-31.2-02; (2) A disorderly conduct restraining order issued against the student at the

request of another student or employee of the school under section 12.1-31.2-01, except a temporary restraining order under subsection 4 of section 12.1-31.2-01; or

(3) A protection order issued against the student at the request of another student or employee of the school, except a temporary protection order under section 14-07.1-03;

c. The principal of the school receives information pertaining to an offense or order included under this section as provided in subsection 2 of section 27-20-51; or

d. The victim of the offense or the subject of the order notifies the principal of the offense or order.

2. For purposes of this section, a representative of the juvenile court system may notify the principal of a school regarding the existence of files or records of the juvenile court pertaining to a student of the school which are open to inspection by the principal under subsection 2 of section 27-20-51.

15.1-09-34. Contracts by school boards - Bids - enalty. 1. Except as provided in this section, the board of a school district may not enter a

contract involving the expenditure of an aggregate amount greater than twenty-five thousand dollars unless the school board has given ten days' notice by publication in the official newspaper of the district, received sealed bids, and accepted the bid of the lowest responsible bidder. This section does not apply to contracts for: a. The personal services of district employees. b. Textbooks and reference books. c. Articles not sold on the open market. d. Patented, copyrighted, or exclusively sold devices or features required to match

articles already in use. e. Patented, copyrighted, or exclusively sold articles so distinctive that only one

brand can be purchased. f. Building construction projects under chapter 48-01.2.

g. School transportation services purchased under section 15.1-30-11. h. Vehicle fuel purchased under section 15.1-09-34.1. i. Heating fuel purchased under section 15.1-09-34.1. j. The purchase of a used motor vehicle, including a schoolbus, motorbus, or van,

intended primarily for the transportation of students.

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k. Cooperative purchases with the office of management and budget under chapter I . _

1 ,-,

54-44 .4. - , / - 1 m. ---e purchase of products from work activity centers under chapter 25- 1 6.2 .

2 . For purposes of this section , a "used motor veh icle" means a motor veh icle that has been previously owned or leased and which has an odometer read ing in excess of eighteen thousand mi les [28967 ki lometers] .

3 . A board member who participates in a violation of this section is gu i lty of a class B misdemeanor.

15.1-09-34.1. Vehicle and heating fuel - Purchases. At least once each year, the board of a school d istrict shal l publ ish in the official newspaper

of the district information regard ing the reg istration of vehicle fuel vendors and heating fuel vendors. Except as otherwise provided in th is section , the board shal l purchase veh icle fuel and heating fuel only after seeking written quotes from al l vendors who reg istered with the d istrict for that school year.

15.1-09-35. Reports by school boards on conditions of schools. Upon the conclusion of each school year, the board of a school d istrict shal l : 1 . Prepare a report regard ing the condit ion of all schools in the d istrict, inc lud ing their

financial cond ition and the educational progress of students enrol led in each school ; 2 . Forward a copy of the report to the county superintendent of schools; and 3. Publ ish in the official newspaper of the school d istrict that portion of the report wh ich

deals with the financial cond ition of each school .

15.1-09-36. School board - Authority over student fees. 1 . A school board may not charge a fee for textbooks or other items necessary for

completion of a specific course requ i red for grade advancement or g raduation . 2 . A school board may:

a. Requ i re that a student pay a security deposit for the return of textbooks , materials, suppl ies, or equ ipment.

b. Assess a student a use charge if a textbook or other item covered under subsection 1 has received undue wear.

c. Requ i re that a student furnish personal or consumable items. d . Requ i re that a student pay a n admission fee o r other charges for extracurricu lar

or noncurricu lar activities if the student's attendance is optional . e . Requ i re that a student pay a fee or a premium for any authorized student health

and accident benefit plan . f. Requ i re that a student pay a fee for personal ath letic equ ipment and apparel ;

provided the board shal l al low a student to use the student's own equ ipment and apparel i f i t meets reasonable health and safety standards establ ished by the board .

g . Requ i re that a student pay a fee in any program wh ich generates a product that becomes the personal property of the student.

h. Requ i re that a student pay a fee for beh ind-the-wheel d river's education instruction .

i . Requ i re that a student pay a fee for goods, inc luding textbooks, and services provided in connection with any postsecondary level program or any program establ ished outside regu lar elementary, middle school , or secondary school programs, inc lud ing career and technical programs, and adu lt or continu ing education programs.

j . Requ i re that a student pay a fee for the use of a musical instrument owned or rented by the school d istrict, provided that the total fee payable by the student for a school year does not exceed the annual rental cost to the d istrict or the annual depreciation plus actual maintenance cost for tlcle instrument.

Page No. ),0/ 3/

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I ntroduce H B-1360

W'. 6./.J'�() c;/,,;Jf ..u/9 � Iii

Cha i rman Bu rckha rd a nd mem bers of the Senate Pol itica l Subd ivis ions committee,

fo r the record I 'm G le nn Bosch, representi ng B isma rck's D istr ict 30. I 'm here today

to i ntroduce H B-1360.

Over the l ast severa l sess ions, legis lat ion has passed that mod ifies b id ing

requ i rements . The cha nges made served a coup le of d ifferent pu rposes but

typ ica l ly they cha nged the do l la r amount that wou ld trigger when a more forma l

b idd i ng process wou ld ta ke p lace .

I n 2017 the pu b l i c improvement construct ion th resho ld requ i r ing a forma l b id was

i ncreased from $100k to $150K. In 2015, the same statute was a mended to ra ise

the PROJ ECT a mou nt FROM $100K-$150K that requ i red p l an s from a n

a rch itect/eng ineer to be created for a p roject.

Today at the State leve l , pu rchases u nder $SOK a re c lass ified as sma l l pu rchases

a nd on ly req u i re i nfo rma l phone quotes from th ree vendors . P rojects between

$S0K-$100K, c lass ified as an i nforma l pu rchase, requ i re 3 written b ids a nd

pu rchases need to reach the $100K leve l to requ i re a fo rma l sea led b idd ing

process .

At the same t ime, cha pte r 48-01 .2 req u i res that a l l Pa rk D istr ict contracts

exceed ing on ly $25K be awa rded to the lowest respons ib le b idder after

advertisement i n the offic ia l newspa per for two success ive weeks. The $25K

thresho ld was l ast revised i n 2009.

The b i l l before you a mends cu rrent Pa rk Distr ict pu rchas ing statutes and provides

add it iona l flexi b i l ity d u ri ng the procu rement process. Specifica l ly, it wou ld . . . .

1 } I ncrease the contract a mount that requ i res the forma l b idd ing process from

$25K to $SOK.

2 } A l low a Pa rk D istr ict the a bi l ity to pu rchase from state pu rchas ing

agreements .

3 } A l low a Pa rk D istr ict the a b i l ity to decla re a n emergency.

A defi n it ion of an emergency is provided on page 2, l i ne 14 a nd 15.

With that, others a re he re, that wi l l testify on how these cha nges wi l l positive ly

impact the i r specific operat ions a nd provide a more effic ient pu rchas ing process .

Chairman Burckhard and Members of the Committee, my name is Dana Schaar

Jahn er, and I am executive director of the North Dakota Recreation and Park Association

(NDRPA) . NDRPA represents more than 700 members across the state, including park

board members and park district staff, and works to advance parks, recreation and

conservation for an enhanced quality of l ife in North Dakota. We are here in support of

House Bill 1 3 60 .

Park districts across North Dakota support this b id limit increase because periodic

adjustments to limits established in Century Code are necessary as the cost of doing

business continues to rise. As NDRPA discussed this issue with members across the state,

small park districts shared the desire of their park board commissioners to buy local. By

raising the bid l imit on smaller purchases, this allows local businesses to be more

competitive and therefore keep dollars in those communities.

The emergency section also provides parity with many other existing bidding

requirements in Century Code, providing locally elected park boards the ability to mange

emergency situations to ensure the safety of a park district's facilities .

Finally, explicit authority for park districts to utilize Office of Management and

Budget cooperative purchasing services creates efficiencies and cost-savings for local

taxpayers .

NDRPA asks for a do pass on HB 1360 . Thank you.

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1 6 0 5 E A S T C A P I TO L AV E P O B O X 1 0 9 1 B I S M A R C K , N O R T H D A K OTA 5 8 5 0 2 7 0 1 . 3 5 5 . 4 4 5 8 w w w . n d r p a . c o m

BISMARCK PARKS AN D RECREATION DISTRICT Est. 1927

• Testimony of Brian Beattie, President Bismarck Board of Park Commissioners

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Bismarck Parks and Recreation District Senate Political Subdivisions Committee Support for HB 1360 Thursday, February 28, 2019

Cha i rman B u rckh a rd and Mem bers of the Com m ittee, my name is B ri a n Beatt ie a nd I am t h e P res i dent o f t h e B i sma rck Boa rd of Pa rk Com m iss ioners, B i sma rck Pa rks a n d Recreat io n D i str ict . Ou r m iss ion i s : Worki ng with t h e commun ity t o p rovide res idents a nd v i s itors with the h ighest qua l ity pa rk, p rogra m, fac i l ity a nd event exper ience . I a m he re today o n beha lf B i smarck Pa rks a n d Recreat ion D istr ict ( B PRD) t o s upport House B i l l 1360 . I s u pport ra i s ing the b id req u i rement from $25,000 to $50,000 fo r the fo l l ow ing reason s :

• I t h a s been 10 yea rs s i nce N DCC 40-49-14 was a mended to i nc rease the b id req u i rement from $10,000 to i t s cu rrent $25,000 th resho l d . As we a l l know, $25 ,000 does not buy as much a s it d i d 10 yea rs ago.

• Po l i c ies to determ ine pu rchas ing p ract ices be low the state b id req u i rement a re esta b l i shed l oca l ly by Pa rk Boa rds . B PRD' s p u rchas ing po l i c ies req u i re written q u otes a n d mu lt ip le sea led price quotes fo r va r ious p u rchas i ng th resho lds as low as $5,000. See Attach ment 1 .

• P u rchas i ng th resho lds by 0 M B G u ide l i nes fo r fo rma l b i dd i ng a re at much h igher l eve l s than the cu rrent th resho l d fo r Pa rk D istr icts . See Attachment 2 .

• Th i s b i l l a l so provides fo r the sa me emergency exception that i s cu rrent ly out l i ned in 48-01 . 2, Pu b l i c Imp rovement B ids a nd Contracts that a pp l ies to const ruct ion projects with a cost in excess of $ 150,000. One exa mp l e i s a fi re that occu rred in one of ou r b u i l d i ngs when t i me was of the essence to get the b u i l d i ng back to be ing fu l ly operat ion a l . Contractors p rovided cost est imates that were reviewed and app roved by the i n s u ra nce com pa ny. Howeve r, s i n ce BPRD was respons ib l e for payi ng the contracto rs, the repa i rs were de l ayed beca use the costs exceeded $25,000 req u i r i ng b ids to be obta i ned . Hav ing the ab i l ity to have t he boa rd dec l a re an emergency wou l d h ave a l l owed the repa i rs to be com p leted soone r .

• H B1360 a l so c la r ifies that pu rchases of eq u i pment may be made th rough the offi ce of ma nagement and budget as p rovided i n c hapter 54-44 .4, State P u rcha s i ng Pract i ces, without req u i r i ng pa rk d i str icts to sepa rate ly advert ise fo r b i d s .

B i sma rck Pa rks a n d Recreation D istr ict s uppo rts a do pass recommendat ion on H B 1360. Are t he re a ny q uest ions? Tha n k you .

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400 East Front Avenue I Bismarck, ND 58504 I P: (701) 222-6455 F: (701) 221-6838 I bisparks@bisparks.or!l I www.bisparks.or!l

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B ISMARCK PARKS AN D RECREATION D ISTRICT GENERAL OPERA TING PROCEDURES

Attachment 1

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P U RCHASING POLICY

A p u rchas ing po l icy has been developed for the pu rpose of obta in ing the best possib le p rice of goods and services for the Park D istrict wh i le ensu ring compl iance with state law. The p u rchas ing pol icy provides the contracto rs and vendors an equ itab le method of p rovid i ng the goods and services on a competit ive basis and avoids confl icts of interest by staff, vendors or contractors . I t is recommended to obta in quotes if the goods or services a re common items and it wou ld be i n the Park District's best interest to obta in competit ive q u otes .

1 . F o r p u rchases of $5 ,000 to $10 ,000 i t i s requ i red t o obta in written quotes . Written quotes must be documented with date , name of vendor, vendor's contact person and p rice . The manager wi l l reta in copies fo r one year.

2 . A p u rchase o f $10 ,001 to $25 ,000 req u i res written specifications a n d m u lt ip le sea led p rice q uotes must be obta ined i n writ i ng . Written quotes m ust document the date , name of vendor, vend or's contact person and price . Al l price q uotes must be submitted to the D ivis ion D i rector and F inance D i rector fo r review and app rova l . The manager wi l l reta in one copy on locat ion and a copy wi l l be fi led in the main office . Price quotes a re to be kept fo r one yea r.

3 . I n the event on ly one price quote is ava i l ab le , docu mentation exp la in i ng the reason for one quote is necessa ry .

4 . In the case where t imel iness is of essence , the Executive D i recto r may wa ive the p rice q uotes req u i rements noted above . The wa ive r must be in writ ing document ing the reason fo r the wa ive r. A l l wa ivers must be commun icated with the Pa rk Commissioners .

Approved 3/1 9/201 5

1 0

att,.fl-J /J· �

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Attachment 2

Purchas ing Thresholds Effective Ju ly 1 , 201 8

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NOUS employees must follow SBHE policies and NOUS procedures. State Agencies, exclud ing H igher Education i nstitutions , must follow 0MB auidelines .

Level Competition Requ i rements Documentation Maintenance Requ i rement

Level1 Obta in at least one fair and reasonable quote. NOUS: Documentation not required "M icro" Purchase Note: Equipment and software must be added to Alternate Procurement form not

inventory if $5,000 or g reater. (N .D .C .C . § 54-27-2 1 requi red if multiple quotes not Less than F ixed Asset Min imum Report ing Value) solicited $10 , 000

0MB : Rotate vendors solicited on an equitable basis 0MB: Document vendors solicited , (N .D .A.C . § 4-12-08-02) quotes received , and award

determ ination . 0MB : State agencies (exclud ing Higher Education inst itutions) must submit print ing purchase requests $5 , 000 and over to 0MB State P rocurement.

Level 2 Solicit i nformal quotes/b ids or proposals from at least Documentation is required . Smal l th ree vendors, or post to SPO Online with appropriate Purchase state bidders l ist . May send to add it ional vendors . Alternate Procurement form

requi red if competit ion is not At least 0MB : ITD must review IT purchases over $25,000. solicited from at least th ree $10 , 000 Contact itdprocurement@nd.gov vendors. but less than The form i s not required i f th ree $50 , 000 vendors are solicited and fewer

than three b ids or proposals a re received .

Level3 Solicit informal bids or proposals using SPO Online Documentation is required I nformal with appropriate state bidders l ist . May send to Written add itional vendors . Alternate Procurement form Purchase requi red if:

0MB: ITD must review IT purchases over $25 ,000. 1 . Competit ion is not solicited . A t least Contact itdprocurement@nd .gov 2 . SPO Onli ne i s not used . $50 , 000 3 . 0MB : Competit ion i s lim ited . but less than $100 ,000 Level 4 Must be purchased using formal sealed b ids or Documentation is required. Formal Request for Proposal (RFP) . Solicitat ions must be Purchase posted us ing SPO Online with appropriate state Alternate Procurement requ ired if:

b idders list. May send to addit ional b idders . 1 . Competition is not solicited , or $100 ,000 competition is l im ited. and over 0MB : ITD must review IT purchases over $25,000. 2 . SPO Online is not used .

Contact itdprocurement@nd .gov 3 . 0MB : Competit ion is Lim ited .

Questions? Contact 0MB State Procu rement at i nfosQo@.nd .gov or 701 -3 28-1 726