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 [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to local governments; providing in skeleton form for the governing bodies of certain local governments to be required to participate in a competitive bidding process to provide certain public services; and providing other matters properly relating thereto.

 

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:

1-2 244.188 1. Except as otherwise provided in [subsection 3,]

1-3 subsections 3 and 4, a board of county commissioners may, outside the

1-4 boundaries of incorporated cities and general improvement districts:

1-5 (a) Provide [those] the services described in NRS 244.187 on an

1-6 exclusive basis or, by ordinance, adopt a regulatory scheme for controlling

1-7 the provision of those services or controlling development in those areas on

1-8 an exclusive basis; or

1-9 (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 provided

1-11 pursuant to subsection 1, the board of county commissioners may, except as

1-12 otherwise provided in subsection [3,] 4, require owners of real property

1-13 outside the boundaries of incorporated cities and general improvement

1-14 districts to receive and pay for those services.

1-15 3. If the board of county commissioners in a county whose

1-16 population is 100,000 or more wishes to provide services pursuant to

2-1 paragraph (a) of subsection 1, the board must submit the contract for the

2-2 provision of those services to competitive bidding. A bid submitted by the

2-3 board of county commissioners pursuant to this subsection must be

2-4 prepared by an independent certified public accountant. In preparing the

2-5 bid, the independent certified public accountant shall compare any costs

2-6 the county would incur in providing the services and any costs that a

2-7 person would incur in providing the services that the county would not

2-8 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 the

2-11 services regardless of whether the county acquired them for other

2-12 purposes;

2-13 (b) Any additional cost to the county resulting from an increase in

2-14 interest or penalties that the county must pay to cover the cost of

2-15 providing the services including, without limitation, any interest or

2-16 penalties that the county must pay for:

2-17 (1) Using reserves; and

2-18 (2) Borrowing money.

2-19 (c) Any cost to the county for maintaining additional insurance

2-20 required as a result of increased liability incurred from the provision of

2-21 the services;

2-22 (d) Any additional savings to the county for any facilities or support

2-23 services that would be used to provide the services related to the bid that

2-24 would not otherwise be available to a person who provides those services;

2-25 and

2-26 (e) Any amount that a person who provides the services must pay for

2-27 franchise fees, license fees, taxes and other assessments that the county is

2-28 not required to pay.

2-29 The board of county commissioners shall award the contract for the

2-30 provision of the services to the lowest responsible bidder. If the county

2-31 submits a bid in an amount that is equal to a bid submitted by another

2-32 bidder and both bids would be considered the best bid, the contract must

2-33 be awarded to the other bidder. If the county is awarded the contract, the

2-34 board of county commissioners must provide for an annual audit of the

2-35 provision of the services by the county conducted by an independent

2-36 certified public accountant. The results of the audit are a matter of public

2-37 record. If the audit indicates that the county cannot provide the services

2-38 pursuant to the bid it submitted and the additional cost to the county to

2-39 provide the services is equal to or greater than the difference between the

2-40 county’s bid and the bid submitted by the next lowest responsible bidder

2-41 on the contract, the remainder of the contract must be awarded to that

2-42 bidder.

3-1 4. The board of county commissioners may exercise the authority

3-2 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; and

3-5 (b) Includes any real property within 7 miles from the boundary of an

3-6 incorporated city.

3-7 [4.] 5. If an exclusive franchise is granted or a regulatory scheme is

3-8 adopted for the mandatory collection and disposal of garbage and other

3-9 waste, the initial boundaries of the collection area must be the same as the

3-10 boundaries of an existing collection area under an exclusive franchise or

3-11 regulatory scheme.

3-12 [5.] 6. The board of county commissioners may expand the boundaries

3-13 of a collection area established pursuant to subsection [4] 5 after the board

3-14 has:

3-15 (a) Conducted preliminary studies and determined that the proposed

3-16 collection area is economically sound and feasible and promotes the health,

3-17 safety and general welfare of the inhabitants of the county; and

3-18 (b) Held a public hearing on the proposed collection area after giving

3-19 notice of the time and the place of the hearing in a newspaper of general

3-20 circulation in that county. The notice must include the purpose of the

3-21 hearing and describe the boundaries of the proposed collection area.

3-22 Sec. 2. NRS 268.083 is hereby amended to read as follows:

3-23 268.083 1. The governing body of an incorporated city may:

3-24 [1. Provide those]

3-25 (a) Provide the services described in NRS 268.081 on an exclusive

3-26 basis or, by ordinance, adopt a regulatory scheme for providing those

3-27 services or controlling development on an exclusive basis within the

3-28 boundaries of the city; or

3-29 [2.] (b) Grant an exclusive franchise to any person to provide those

3-30 services within the boundaries of the city.

3-31 2. If the governing body of an incorporated city in a county whose

3-32 population is 100,000 or more wishes to provide services pursuant to

3-33 paragraph (a) of subsection 1, the governing body must submit the

3-34 contract for the provision of those services to competitive bidding. A bid

3-35 submitted by the governing body pursuant to this subsection must be

3-36 prepared by an independent certified public accountant. In preparing the

3-37 bid, the independent certified public accountant shall compare any costs

3-38 the city would incur in providing the services and any costs that a person

3-39 would incur in providing the services that the city would not otherwise

3-40 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 regardless

3-43 of whether the city acquired them for other purposes;

4-1 (b) Any additional cost to the city resulting from an increase in

4-2 interest or penalties that the city must pay to cover the cost of providing

4-3 the services including, without limitation, any interest or penalties that

4-4 the city must pay for:

4-5 (1) Using reserves; and

4-6 (2) Borrowing money.

4-7 (c) Any cost to the city for maintaining additional insurance required

4-8 as a result of increased liability incurred from the provision of the

4-9 services;

4-10 (d) Any additional savings to the city for any facilities or support

4-11 services that would be used to provide the services related to the bid that

4-12 would not otherwise be available to a person who provides those services;

4-13 and

4-14 (e) Any amount that a person who provides the services must pay for

4-15 franchise fees, license fees, taxes and other assessments that the city is

4-16 not required to pay.

4-17 The governing body shall award the contract for the provision of the

4-18 services to the lowest responsible bidder. If the city submits a bid in an

4-19 amount that is equal to a bid submitted by another bidder and both bids

4-20 would be considered the best bid, the contract must be awarded to the

4-21 other bidder. If the city is awarded the contract, the governing body must

4-22 provide for an annual audit of the provision of the services by the city

4-23 conducted by an independent certified public accountant. The results of

4-24 the audit are a matter of public record. If the audit indicates that the city

4-25 cannot provide the services pursuant to the bid it submitted and the

4-26 additional cost to the city to provide the services is equal to or greater

4-27 than the difference between the city’s bid and the bid submitted by the

4-28 next lowest responsible bidder on the contract, the remainder of the

4-29 contract must be awarded to that bidder.

4-30 Sec. 3. Chapter 269 of NRS is hereby amended by adding thereto the

4-31 provisions set forth as sections 4 and 5 of this act.

4-32 Sec. 4. The board of county commissioners may, to provide

4-33 adequate, economical and efficient services to the inhabitants of an

4-34 unincorporated town and to promote the general welfare of those

4-35 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 that

4-38 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 leasing

4-41 of motor vehicles and the licensing of concession stands, but excluding

4-42 police protection and fire protection.

5-1 5. Water and sewage treatment, unless regulated in that

5-2 unincorporated town by an agency of the state.

5-3 6. Concessions on, over or under property owned or leased by the

5-4 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 an

5-8 exclusive basis or, by ordinance, adopt a regulatory scheme for providing

5-9 those services or controlling development on an exclusive basis within

5-10 the boundaries of the unincorporated town; or

5-11 (b) Grant an exclusive franchise to any person to provide those

5-12 services within the boundaries of the unincorporated town.

5-13 2. If the board of county commissioners wishes to provide services

5-14 pursuant to paragraph (a) of subsection 1, the board must submit the

5-15 contract for the provision of those services to competitive bidding. A bid

5-16 submitted by the board of county commissioners pursuant to this

5-17 subsection must be prepared by an independent certified public

5-18 accountant. In preparing the bid, the independent certified public

5-19 accountant shall compare any costs the unincorporated town would

5-20 incur in providing the services and any costs that a person would incur in

5-21 providing the services that the unincorporated town would not otherwise

5-22 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 provide

5-25 the services regardless of whether the unincorporated town acquired

5-26 them for other purposes;

5-27 (b) Any additional cost to the unincorporated town resulting from an

5-28 increase in interest or penalties that the unincorporated town must pay to

5-29 cover the cost of providing the services, including, without limitation, any

5-30 interest or penalties that the unincorporated town must pay for:

5-31 (1) Using reserves; and

5-32 (2) Borrowing money.

5-33 (c) Any cost to the unincorporated town for maintaining additional

5-34 insurance required as a result of increased liability incurred from the

5-35 provision of the services;

5-36 (d) Any additional savings to the unincorporated town for any

5-37 facilities or support services that would be used to provide the services

5-38 related to the bid that would not otherwise be available to a person who

5-39 provides those services; and

5-40 (e) Any amount that a person who provides the services must pay for

5-41 franchise fees, license fees, taxes and other assessments that the

5-42 unincorporated town is not required to pay.

6-1 The board of county commissioners shall award the contract for the

6-2 provision of the services to the lowest responsible bidder. If the

6-3 unincorporated town submits a bid in an amount that is equal to a bid

6-4 submitted by another bidder and both bids would be considered the best

6-5 bid, the contract must be awarded to the other bidder. If the

6-6 unincorporated town is awarded the contract, the board of county

6-7 commissioners must provide for an annual audit of the provision of the

6-8 services by the unincorporated town conducted by an independent

6-9 certified public accountant. The results of the audit are a matter of public

6-10 record. If the audit indicates that the unincorporated town cannot

6-11 provide the services pursuant to the bid it submitted and the additional

6-12 cost to the unincorporated town to provide the services is equal to or

6-13 greater than the difference between the unincorporated town’s bid and

6-14 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:

6-17 269.129 1. A town board or board of county commissioners may:

6-18 [1. Provide those]

6-19 (a) Provide the services described in NRS 269.128 on an exclusive

6-20 basis or, by ordinance, adopt a regulatory scheme for providing those

6-21 services or controlling development on an exclusive basis within the

6-22 boundaries of the town; or

6-23 [2.] (b) Grant an exclusive franchise to any person to provide those

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 a

6-26 county whose population is 100,000 or more wishes to provide services

6-27 pursuant to paragraph (a) of subsection 1, the town board or board of

6-28 county commissioners must submit the contract for the provision of those

6-29 services to competitive bidding. A bid submitted by the town board or

6-30 board of county commissioners pursuant to this subsection must be

6-31 prepared by an independent certified public accountant. In preparing the

6-32 bid, the independent certified public accountant shall compare any costs

6-33 the town would incur in providing the services and any costs that a

6-34 person would incur in providing the services that the town would not

6-35 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 regardless

6-38 of whether the town acquired them for other purposes;

6-39 (b) Any additional cost to the town resulting from an increase in

6-40 interest or penalties that the town must pay to cover the cost of providing

6-41 the services, including, without limitation, any interest or penalties that

6-42 the town must pay for:

6-43 (1) Using reserves; and

7-1 (2) Borrowing money.

7-2 (c) Any cost to the town for maintaining additional insurance required

7-3 as a result of increased liability incurred from the provision of the

7-4 services;

7-5 (d) Any additional savings to the town for any facilities or support

7-6 services that would be used to provide the services related to the bid that

7-7 would not otherwise be available to a person who provides those services;

7-8 and

7-9 (e) Any amount that a person who provides the services must pay for

7-10 franchise fees, license fees, taxes and other assessments that the town is

7-11 not required to pay.

7-12 The town board or board of county commissioners shall award the

7-13 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 by

7-15 another bidder and both bids would be considered the best bid, the

7-16 contract must be awarded to the other bidder. If the town is awarded the

7-17 contract, the town board or board of county commissioners must provide

7-18 for an annual audit of the provision of the services by the town

7-19 conducted by an independent certified public accountant. The results of

7-20 the audit are a matter of public record. If the audit indicates that the

7-21 town cannot provide the services pursuant to the bid it submitted and the

7-22 additional cost to the town to provide the services is equal to or greater

7-23 than the difference between the town’s bid and the bid submitted by the

7-24 next lowest responsible bidder on the contract, the remainder of the

7-25 contract must be awarded to that bidder.

7-26 Sec. 7. NRS 269.500 is hereby amended to read as follows:

7-27 269.500 NRS 269.500 to 269.625, inclusive, and sections 4 and 5 of

7-28 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:

7-30 269.580 The board of county commissioners of any county may, by

7-31 resolution adopted at a regular meeting, designate any one or more of the

7-32 services enumerated in NRS 269.575 and section 4 of this act, if

7-33 applicable, as properly within the power of a town advisory board to

7-34 manage.

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