(1) As used in this section:

1. (a) "Board" means the Board of Water Resources created in Section 73-10-1.5.
2. (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for construction of the contemplated project.

3. (c) "Lowest responsible bidder" means a licensed contractor:

   1. (i) who:

      1. (A) submits the lowest bid; and
      2. (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and 63G-6a-1103; and

   2. (ii) whose bid:

      1. (A) is in compliance with the invitation for a bid; and
      2. (B) meets the plans and specifications.

(2) In considering the priority for a project to be built or financed with funds made available under Section 73-10-24, the board shall give preference to a project that:

1. (a) is sponsored by, or for the benefit of, the state or a political subdivision of the state;
2. (b) meets a critical local need;
3. (c) has greater economic feasibility;
4. (d) will yield revenue to the state within a reasonable time or will return a reasonable rate of interest, based on financial feasibility; and
5. (e) meets other considerations deemed necessary by the board, including wildlife management and recreational needs.

(3)

1. (a) In determining the economic feasibility, the board shall establish a benefit-to-cost ratio for each project, using a uniform standard of procedure for all projects.
2. (b) In considering whether a project should be built, the benefit-to-cost ratio for each project shall be weighted based on the relative cost of the project.
3. (c) A project, when considered in total with all other projects constructed under this chapter and still the subject of a repayment contract, may not cause the accumulative benefit-to-cost ratio of the projects to be less than one to one.

(4) A project may not be built if the project is not:

1. (a) in the public interest, as determined by the board; or
2. (b) adequately designed based on sound engineering and geologic considerations.

(5) In preparing a project constructed by the board, the board shall:

1. (a) based on a competitive bid, award a contract for:

   1. (i) a flood control project:

      1. (A) involving a city or county; and
      2. (B) costing in excess of $35,000;
   2. (ii) the construction of a storage reservoir in excess of 100 acre-feet; or
   3. (iii) the construction of a hydroelectric generating facility;

2. (b) publish an advertisement for a competitive bid:

   1. (i) at least once a week for three consecutive weeks in a newspaper with general circulation in the state, with the last date of publication appearing at least five days before the schedule bid opening; and

   2. (ii) indicating that the board:

      1. (A) will award the contract to the lowest responsible bidder; and
      2. (B) reserves the right to reject any and all bids;
3. (c) readvertise the project in the manner specified in Subsection (5)(b) if the board rejects all of the initial bids on the project; and
4. (d) keep an accurate record of all facts and representations relied upon in preparing the board's estimated cost for a project that is subject to the competitive bidding requirements of this section.