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LEGISLATIVE BILL 797
Approved by the Governor April 14, 2026
Introduced by Urban Affairs Committee: McKinney, 11, Chairperson; Cavanaugh,
J., 9; Quick, 35; Rountree, 3.
A BILL FOR AN ACT relating to municipalities; to amend sections 16-321 and
17-568.01, Reissue Revised Statutes of Nebraska; to increase minimum
bidding amount requirements for cities of the first class, cities of the
second class, and villages as prescribed; and to repeal the original
sections.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 16-321, Reissue Revised Statutes of Nebraska, is
amended to read:
16-321 (1) The city engineer of a city of the first class shall, when
requested by the mayor or city council, make estimates of the cost of labor and
material which may be done or furnished by contract with the city and make all
surveys, estimates, and calculations necessary to be made for the establishment
of grades, the building of culverts, sewers, electric light systems,
waterworks, power plants, public heating systems, bridges, curbing, and
gutters, the improvement of streets, and the erection and repair of buildings
and shall perform such other duties as the city council may require. When the
city has appointed a board of public works, and the mayor and city council have
by ordinance so authorized, such board may utilize its own engineering staff
and may hire consulting engineers for the design and installation of extensions
and improvements of the works under the jurisdiction of the board of public
works. Whenever the mayor and city council have authorized the same, the board
of public works may purchase material and employ labor for the enlargement or
improvement of the systems and works under the jurisdiction of the board.
(2) Except as provided in section 18-412.01, no contract for enlargement
or general improvements, such as water extensions, sewers, public heating
systems, bridges, work on streets, or any other work or improvement when the
cost of such improvement is assessed to the property, costing over ninety
thirty thousand dollars shall be made unless it is first approved by the city
council.
(3) Except as provided in section 18-412.01, before the city council makes
any contract in excess of ninety thirty thousand dollars for enlargement or
general improvements, such as water extensions, sewers, public heating systems,
bridges, work on streets, or any other work or improvement when the cost of
such enlargement or improvement is assessed to the property, an estimate of the
cost shall be made by the city engineer and submitted to the city council. In
advertising for bids as provided in subsections (4) and (6) of this section,
the city council may publish the amount of the estimate.
(4) Advertisements for bids shall be required for any contract costing
over ninety thirty thousand dollars entered into (a) for enlargement or general
improvements, such as water extensions, sewers, public heating systems,
bridges, work on streets, or any other work or improvement when the cost of
such enlargement or improvement is assessed to the property, or (b) for the
purchase of equipment used in the construction of such enlargement or general
improvements.
(5) A municipal electric utility may enter into a contract for the
enlargement or improvement of the electric system or for the purchase of
equipment used for such enlargement or improvement without advertising for bids
if the price is: (a) Ninety Thirty thousand dollars or less; (b) one hundred
eighty sixty thousand dollars or less and the municipal electric utility has
gross annual revenue from retail sales in excess of one million dollars; (c)
two hundred fifty ninety thousand dollars or less and the municipal electric
utility has gross annual revenue from retail sales in excess of five million
dollars; or (d) three one hundred twenty thousand dollars or less and the
municipal electric utility has gross annual revenue from retail sales in excess
of ten million dollars ; (e) five hundred thousand dollars or less and the
municipal electric utility has gross annual revenue from retail sales in excess
of twenty million dollars; (f) seven hundred fifty thousand dollars or less and
the municipal electric utility has gross annual revenue from retail sales in
excess of thirty million dollars; or (g) one million dollars or less and the
municipal electric utility has gross annual revenue from retail sales in excess
of seventy-five million dollars.
(6) The advertisement provided for in subsections (3) and (4) of this
section shall be published at least seven days prior to the bid closing in a
legal newspaper in or of general circulation in the city. In case of a public
emergency resulting from infectious or contagious diseases, destructive
windstorms, floods, snow, war, or an exigency or pressing necessity or
unforeseen need calling for immediate action or remedy to prevent a serious
loss of, or serious injury or damage to, life, health, or property, estimates
of costs and advertising for bids may be waived in the emergency ordinance
authorized by section 16-405 when adopted by a three-fourths vote of the city
council and entered of record.
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(7) If, after advertising for bids as provided in subsections (3), (4),
and (6) of this section, the city council receives fewer than two bids on a
contract or if the bids received by the city council contain a price which
exceeds the estimated cost, the mayor and the city council may negotiate a
contract in an attempt to complete the proposed enlargement or general
improvements at a cost commensurate with the estimate given.
(8) If the materials are of such a nature that, in the opinion of the
manufacturer and with the concurrence of the city council or board of public
works, no cost can be estimated until the materials have been manufactured or
assembled to the specific qualifications of the city, the city council or board
of public works may authorize the manufacture and assemblage of such materials
and may thereafter approve the estimated cost expenditure when it is provided
by the manufacturer.
Sec. 2. Section 17-568.01, Reissue Revised Statutes of Nebraska, is
amended to read:
17-568.01 (1) The city engineer in a city of the second class or village
engineer shall, when requested by the mayor, city council, or village board of
trustees, make estimates of the cost of labor and material which may be done or
furnished by contract with the city or village and make all surveys, estimates,
and calculations necessary to be made for the establishment of grades, the
building of culverts, sewers, electric light systems, waterworks, power plants,
public heating systems, bridges, curbing, and gutters, the improvement of
streets, and the erection and repair of buildings and shall perform such other
duties as the city council or village board of trustees may require.
When a city of the second class has appointed a board of public works, and
the mayor and city council have by ordinance so authorized, the board of public
works may utilize its own engineering staff and may hire consulting engineers
for the design and installation of extensions and improvements of the works
under the jurisdiction of the board of public works. Whenever the mayor and
city council have authorized the same, the board of public works may purchase
material and employ labor for the enlargement or improvement of the systems and
works under the jurisdiction of the board of public works.
(2) Except as provided in section 18-412.01, no contract for enlargement
or general improvements, such as water extensions, sewers, public heating
systems, bridges, work on streets, or any other work or improvement when the
cost of such enlargement or improvement is assessed to the property, costing
over ninety thirty thousand dollars shall be made unless it is first approved
by the city council or village board of trustees.
(3) Except as provided in section 18-412.01, before the city council or
village board of trustees makes any contract in excess of ninety thirty
thousand dollars for enlargement or general improvements, such as water
extensions, sewers, public heating systems, bridges, work on streets, or any
other work or improvement when the cost of such enlargement or improvement is
assessed to the property, an estimate of the cost shall be made by the city
engineer or village engineer and submitted to the city council or village board
of trustees. In advertising for bids as provided in subsections (4) and (6) of
this section, the city council or village board of trustees may publish the
amount of the estimate.
(4) Advertisements for bids shall be required for any contract costing
over ninety thirty thousand dollars entered into (a) for enlargement or general
improvements, such as water extensions, sewers, public heating systems,
bridges, work on streets, or any other work or improvement when the cost of
such enlargement or improvement is assessed to the property, or (b) for the
purchase of equipment used in the construction of such enlargement or general
improvements.
(5) A municipal electric utility may enter into a contract for the
enlargement or improvement of the electric system or for the purchase of
equipment used for such enlargement or improvement without advertising for bids
if the price is: (a) Ninety Thirty thousand dollars or less; (b) one hundred
eighty sixty thousand dollars or less and the municipal electric utility has
gross annual revenue from retail sales in excess of one million dollars; (c)
two hundred fifty ninety thousand dollars or less and the municipal electric
utility has gross annual revenue from retail sales in excess of five million
dollars; or (d) three one hundred twenty thousand dollars or less and the
municipal electric utility has gross annual revenue from retail sales in excess
of ten million dollars ; (e) five hundred thousand dollars or less and the
municipal electric utility has gross annual revenue from retail sales in excess
of twenty million dollars; (f) seven hundred fifty thousand dollars or less and
the municipal electric utility has gross annual revenue from retail sales in
excess of thirty million dollars; or (g) one million dollars or less and the
municipal electric utility has gross annual revenue from retail sales in excess
of seventy-five million dollars.
(6) The advertisement provided for in subsections (3) and (4) of this
section shall be published at least seven days prior to the bid closing in a
legal newspaper in or of general circulation in the city or village. In case of
a public emergency resulting from infectious or contagious diseases,
destructive windstorms, floods, snow, war, or an exigency or pressing necessity
or unforeseen need calling for immediate action or remedy to prevent a serious
loss of, or serious injury or damage to, life, health, or property, estimates
of costs and advertising for bids may be waived in the emergency ordinance
authorized by section 17-613 when adopted by a three-fourths vote of the city
council or village board of trustees and entered of record.
(7) If, after advertising for bids as provided in subsections (3), (4),
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and (6) of this section, the city council or village board of trustees receives
fewer than two bids on a contract or if the bids received by the city council
or village board of trustees contain a price which exceeds the estimated cost,
the mayor and the city council or village board of trustees may negotiate a
contract in an attempt to complete the proposed enlargement or general
improvements at a cost commensurate with the estimate given.
(8) If the materials are of such a nature that, in the opinion of the
manufacturer and with the concurrence of the city council, village board of
trustees, or board of public works, no cost can be estimated until the
materials have been manufactured or assembled to the specific qualifications of
the purchasing municipality, the city council, village board of trustees, or
board of public works may authorize the manufacture and assemblage of such
materials and may thereafter approve the estimated cost expenditure when it is
provided by the manufacturer.
Sec. 3. Original sections 16-321 and 17-568.01, Reissue Revised Statutes
of Nebraska, are repealed.
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