Senate Bill No. 422–Senator Schneider
March 15, 1999
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Referred to Committee on Government Affairs
SUMMARY—Requires governing bodies of certain local governments to participate in competitive bidding process to provide certain public services. (BDR 20-1236)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. NRS 244.188 is hereby amended to read as follows: 244.188 1. Except as otherwise provided in1-3
subsections 3 and 4, a board of county commissioners may, outside the1-4
boundaries of incorporated cities and general improvement districts:1-5
(a) Provide1-6
exclusive basis or, by ordinance, adopt a regulatory scheme for controlling1-7
the provision of those services or controlling development in those areas on1-8
an exclusive basis; or1-9
(b) Grant an exclusive franchise to any person to provide those services.1-10
2. If services for the collection and disposal of garbage are provided1-11
pursuant to subsection 1, the board of county commissioners may, except as1-12
otherwise provided in subsection1-13
outside the boundaries of incorporated cities and general improvement1-14
districts to receive and pay for those services.1-15
3. If the board of county commissioners in a county whose1-16
population is 100,000 or more wishes to provide services pursuant to2-1
paragraph (a) of subsection 1, the board must submit the contract for the2-2
provision of those services to competitive bidding. A bid submitted by the2-3
board of county commissioners pursuant to this subsection must be2-4
prepared by an independent certified public accountant. In preparing the2-5
bid, the independent certified public accountant shall compare any costs2-6
the county would incur in providing the services and any costs that a2-7
person would incur in providing the services that the county would not2-8
otherwise incur, including, without limitation, the following:2-9
(a) Any cost to the county to pay for any utilities, personnel,2-10
equipment, supplies or facilities that would be used to provide the2-11
services regardless of whether the county acquired them for other2-12
purposes;2-13
(b) Any additional cost to the county resulting from an increase in2-14
interest or penalties that the county must pay to cover the cost of2-15
providing the services including, without limitation, any interest or2-16
penalties that the county must pay for:2-17
(1) Using reserves; and2-18
(2) Borrowing money.2-19
(c) Any cost to the county for maintaining additional insurance2-20
required as a result of increased liability incurred from the provision of2-21
the services;2-22
(d) Any additional savings to the county for any facilities or support2-23
services that would be used to provide the services related to the bid that2-24
would not otherwise be available to a person who provides those services;2-25
and2-26
(e) Any amount that a person who provides the services must pay for2-27
franchise fees, license fees, taxes and other assessments that the county is2-28
not required to pay.2-29
The board of county commissioners shall award the contract for the2-30
provision of the services to the lowest responsible bidder. If the county2-31
submits a bid in an amount that is equal to a bid submitted by another2-32
bidder and both bids would be considered the best bid, the contract must2-33
be awarded to the other bidder. If the county is awarded the contract, the2-34
board of county commissioners must provide for an annual audit of the2-35
provision of the services by the county conducted by an independent2-36
certified public accountant. The results of the audit are a matter of public2-37
record. If the audit indicates that the county cannot provide the services2-38
pursuant to the bid it submitted and the additional cost to the county to2-39
provide the services is equal to or greater than the difference between the2-40
county’s bid and the bid submitted by the next lowest responsible bidder2-41
on the contract, the remainder of the contract must be awarded to that2-42
bidder.3-1
4. The board of county commissioners may exercise the authority3-2
provided in subsections 1 and 2 , subject to the limitations in subsection 3,3-3
within the boundaries of a general improvement district if that district:3-4
(a) Is not authorized to provide those services; and3-5
(b) Includes any real property within 7 miles from the boundary of an3-6
incorporated city.3-7
3-8
adopted for the mandatory collection and disposal of garbage and other3-9
waste, the initial boundaries of the collection area must be the same as the3-10
boundaries of an existing collection area under an exclusive franchise or3-11
regulatory scheme.3-12
3-13
of a collection area established pursuant to subsection3-14
has:3-15
(a) Conducted preliminary studies and determined that the proposed3-16
collection area is economically sound and feasible and promotes the health,3-17
safety and general welfare of the inhabitants of the county; and3-18
(b) Held a public hearing on the proposed collection area after giving3-19
notice of the time and the place of the hearing in a newspaper of general3-20
circulation in that county. The notice must include the purpose of the3-21
hearing and describe the boundaries of the proposed collection area.3-22
Sec. 2. NRS 268.083 is hereby amended to read as follows: 268.083 1. The governing body of an incorporated city may:3-24
3-25
(a) Provide the services described in NRS 268.081 on an exclusive3-26
basis or, by ordinance, adopt a regulatory scheme for providing those3-27
services or controlling development on an exclusive basis within the3-28
boundaries of the city; or3-29
3-30
services within the boundaries of the city.3-31
2. If the governing body of an incorporated city in a county whose3-32
population is 100,000 or more wishes to provide services pursuant to3-33
paragraph (a) of subsection 1, the governing body must submit the3-34
contract for the provision of those services to competitive bidding. A bid3-35
submitted by the governing body pursuant to this subsection must be3-36
prepared by an independent certified public accountant. In preparing the3-37
bid, the independent certified public accountant shall compare any costs3-38
the city would incur in providing the services and any costs that a person3-39
would incur in providing the services that the city would not otherwise3-40
incur, including, without limitation, the following:3-41
(a) Any cost to the city to pay for any utilities, personnel, equipment,3-42
supplies or facilities that would be used to provide the services regardless3-43
of whether the city acquired them for other purposes;4-1
(b) Any additional cost to the city resulting from an increase in4-2
interest or penalties that the city must pay to cover the cost of providing4-3
the services including, without limitation, any interest or penalties that4-4
the city must pay for:4-5
(1) Using reserves; and4-6
(2) Borrowing money.4-7
(c) Any cost to the city for maintaining additional insurance required4-8
as a result of increased liability incurred from the provision of the4-9
services;4-10
(d) Any additional savings to the city for any facilities or support4-11
services that would be used to provide the services related to the bid that4-12
would not otherwise be available to a person who provides those services;4-13
and4-14
(e) Any amount that a person who provides the services must pay for4-15
franchise fees, license fees, taxes and other assessments that the city is4-16
not required to pay.4-17
The governing body shall award the contract for the provision of the4-18
services to the lowest responsible bidder. If the city submits a bid in an4-19
amount that is equal to a bid submitted by another bidder and both bids4-20
would be considered the best bid, the contract must be awarded to the4-21
other bidder. If the city is awarded the contract, the governing body must4-22
provide for an annual audit of the provision of the services by the city4-23
conducted by an independent certified public accountant. The results of4-24
the audit are a matter of public record. If the audit indicates that the city4-25
cannot provide the services pursuant to the bid it submitted and the4-26
additional cost to the city to provide the services is equal to or greater4-27
than the difference between the city’s bid and the bid submitted by the4-28
next lowest responsible bidder on the contract, the remainder of the4-29
contract must be awarded to that bidder.4-30
Sec. 3. Chapter 269 of NRS is hereby amended by adding thereto the4-31
provisions set forth as sections 4 and 5 of this act.4-32
Sec. 4. The board of county commissioners may, to provide4-33
adequate, economical and efficient services to the inhabitants of an4-34
unincorporated town and to promote the general welfare of those4-35
inhabitants, displace or limit competition in any of the following areas:4-36
1. Ambulance service.4-37
2. Taxicabs and other public transportation, unless regulated in that4-38
unincorporated town by an agency of the state.4-39
3. Collection and disposal of garbage and other waste.4-40
4. Operations at an airport, including, without limitation, the leasing4-41
of motor vehicles and the licensing of concession stands, but excluding4-42
police protection and fire protection.5-1
5. Water and sewage treatment, unless regulated in that5-2
unincorporated town by an agency of the state.5-3
6. Concessions on, over or under property owned or leased by the5-4
unincorporated town.5-5
7. Operation of landfills.5-6
Sec. 5. 1. The board of county commissioners may:5-7
(a) Provide the services described in section 4 of this act on an5-8
exclusive basis or, by ordinance, adopt a regulatory scheme for providing5-9
those services or controlling development on an exclusive basis within5-10
the boundaries of the unincorporated town; or5-11
(b) Grant an exclusive franchise to any person to provide those5-12
services within the boundaries of the unincorporated town.5-13
2. If the board of county commissioners wishes to provide services5-14
pursuant to paragraph (a) of subsection 1, the board must submit the5-15
contract for the provision of those services to competitive bidding. A bid5-16
submitted by the board of county commissioners pursuant to this5-17
subsection must be prepared by an independent certified public5-18
accountant. In preparing the bid, the independent certified public5-19
accountant shall compare any costs the unincorporated town would5-20
incur in providing the services and any costs that a person would incur in5-21
providing the services that the unincorporated town would not otherwise5-22
incur, including, without limitation, the following:5-23
(a) Any cost to the unincorporated town to pay for any utilities,5-24
personnel, equipment, supplies or facilities that would be used to provide5-25
the services regardless of whether the unincorporated town acquired5-26
them for other purposes;5-27
(b) Any additional cost to the unincorporated town resulting from an5-28
increase in interest or penalties that the unincorporated town must pay to5-29
cover the cost of providing the services, including, without limitation, any5-30
interest or penalties that the unincorporated town must pay for:5-31
(1) Using reserves; and5-32
(2) Borrowing money.5-33
(c) Any cost to the unincorporated town for maintaining additional5-34
insurance required as a result of increased liability incurred from the5-35
provision of the services;5-36
(d) Any additional savings to the unincorporated town for any5-37
facilities or support services that would be used to provide the services5-38
related to the bid that would not otherwise be available to a person who5-39
provides those services; and5-40
(e) Any amount that a person who provides the services must pay for5-41
franchise fees, license fees, taxes and other assessments that the5-42
unincorporated town is not required to pay.6-1
The board of county commissioners shall award the contract for the6-2
provision of the services to the lowest responsible bidder. If the6-3
unincorporated town submits a bid in an amount that is equal to a bid6-4
submitted by another bidder and both bids would be considered the best6-5
bid, the contract must be awarded to the other bidder. If the6-6
unincorporated town is awarded the contract, the board of county6-7
commissioners must provide for an annual audit of the provision of the6-8
services by the unincorporated town conducted by an independent6-9
certified public accountant. The results of the audit are a matter of public6-10
record. If the audit indicates that the unincorporated town cannot6-11
provide the services pursuant to the bid it submitted and the additional6-12
cost to the unincorporated town to provide the services is equal to or6-13
greater than the difference between the unincorporated town’s bid and6-14
the bid submitted by the next lowest responsible bidder on the contract,6-15
the remainder of the contract must be awarded to that bidder.6-16
Sec. 6. NRS 269.129 is hereby amended to read as follows: 269.129 1. A town board or board of county commissioners may:6-18
6-19
(a) Provide the services described in NRS 269.128 on an exclusive6-20
basis or, by ordinance, adopt a regulatory scheme for providing those6-21
services or controlling development on an exclusive basis within the6-22
boundaries of the town; or6-23
6-24
services within the boundaries of the town.6-25
2. If the town board or board of county commissioners of a town in a6-26
county whose population is 100,000 or more wishes to provide services6-27
pursuant to paragraph (a) of subsection 1, the town board or board of6-28
county commissioners must submit the contract for the provision of those6-29
services to competitive bidding. A bid submitted by the town board or6-30
board of county commissioners pursuant to this subsection must be6-31
prepared by an independent certified public accountant. In preparing the6-32
bid, the independent certified public accountant shall compare any costs6-33
the town would incur in providing the services and any costs that a6-34
person would incur in providing the services that the town would not6-35
otherwise incur, including, without limitation, the following:6-36
(a) Any cost to the town to pay for any utilities, personnel, equipment,6-37
supplies or facilities that would be used to provide the services regardless6-38
of whether the town acquired them for other purposes;6-39
(b) Any additional cost to the town resulting from an increase in6-40
interest or penalties that the town must pay to cover the cost of providing6-41
the services, including, without limitation, any interest or penalties that6-42
the town must pay for:6-43
(1) Using reserves; and7-1
(2) Borrowing money.7-2
(c) Any cost to the town for maintaining additional insurance required7-3
as a result of increased liability incurred from the provision of the7-4
services;7-5
(d) Any additional savings to the town for any facilities or support7-6
services that would be used to provide the services related to the bid that7-7
would not otherwise be available to a person who provides those services;7-8
and7-9
(e) Any amount that a person who provides the services must pay for7-10
franchise fees, license fees, taxes and other assessments that the town is7-11
not required to pay.7-12
The town board or board of county commissioners shall award the7-13
contract for the provision of the services to the lowest responsible bidder.7-14
If the town submits a bid in an amount that is equal to a bid submitted by7-15
another bidder and both bids would be considered the best bid, the7-16
contract must be awarded to the other bidder. If the town is awarded the7-17
contract, the town board or board of county commissioners must provide7-18
for an annual audit of the provision of the services by the town7-19
conducted by an independent certified public accountant. The results of7-20
the audit are a matter of public record. If the audit indicates that the7-21
town cannot provide the services pursuant to the bid it submitted and the7-22
additional cost to the town to provide the services is equal to or greater7-23
than the difference between the town’s bid and the bid submitted by the7-24
next lowest responsible bidder on the contract, the remainder of the7-25
contract must be awarded to that bidder.7-26
Sec. 7. NRS 269.500 is hereby amended to read as follows: 269.500 NRS 269.500 to 269.625, inclusive, and sections 4 and 5 of7-28
this act may be cited as the Unincorporated Town Government Law.7-29
Sec. 8. NRS 269.580 is hereby amended to read as follows: 269.580 The board of county commissioners of any county may, by7-31
resolution adopted at a regular meeting, designate any one or more of the7-32
services enumerated in NRS 269.575 and section 4 of this act, if7-33
applicable, as properly within the power of a town advisory board to7-34
manage.~