017 of 2012 - Establishing bid criteria for building improvement & public works projects 0 12-1
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SALT LAKE CITY ORDINANCE
No. 17 of 2012
(Establishing bid criteria for building improvement and public works projects)
AN ORDINANCE AMENDING SECTIONS 3.24.110 AND 3.24.160,SALT LAKE
CITY CODE, AND ENACTING SECTION 3.24.115,SALT LAKE CITY CODE, TO
ESTABLISH CRITERIA FOR DETERMINING THE LOWEST RESPONSIVE
RESPONSIBLE BIDDER FOR BUILDING IMPROVEMENT AND PUBLIC WORKS
PROJECTS.
WHEREAS, pursuant to Utah Code Ann. § 11-39-101, et seq., a local entity intending to
undertake an entity funded building improvement or public works project must request bids if the
estimated cost of the project exceeds a defined amount known as the "bid limit"; and
WHEREAS, if the local entity determines to proceed with the building improvement or
public works project, then the local entity must enter into a contract for the completion of the
building improvement or public works project with the lowest responsive responsible bidder; and
WHEREAS, to assist in the determination of the lowest responsive responsible bidder the
local entity may establish criteria relating to financial strength, past performance, integrity,
reliability, and other factors to assess the ability of the bidder to perform fully and in good faith
the contract's requirements; and
WHEREAS, it is proposed that Sections 3.24.110 and 3.24.160,Salt Lake City Code, be
amended and Section 3.24.115,Salt Lake City Code, be enacted to establish criteria for
determining the lowest responsive responsible bidder for a building improvement or public
works project; and
WHEREAS, the City Council finds adoption of this ordinance reasonably furthers the
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health, safety, and general welfare of the citizens of Salt Lake City.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. Section 3.24.110, Salt Lake City Code, shall be, and hereby is, amended to
read as follows:
3.24.110: EVALUATION:
A. In addition to the requirements or criteria contained in a bid package or
proposal package, or contained in other solicitation documents, any bid, proposal or other
offer or submission may be evaluated in accordance with the following:
1. The procurement rules may state criteria by which any submission may
be evaluated.
2. The city may inspect, test, and otherwise evaluate any equipment,
goods, supplies, services, products, plants, places of business or other items used
in or subject to a city procurement process or city contract. The city may reject
any supply, service, or other item in connection with such inspection,test, or
evaluation.
3. A written determination of nonresponsibility of a bidder or offeror shall
be made in accordance with the procurement rules. The unreasonable failure of a
bidder or offeror to promptly supply information in connection with an inquiry
with respect to responsibility may be grounds for a determination of
nonresponsibility.
B. In addition to the requirements contained in a bid package or proposal package,
or contained in other solicitation documents, a bid for a building improvement or public
works project shall include application of the criteria set forth in Section 3.24.115 of this
chapter.
SECTION 2. Section 3.24.115,Salt Lake City Code, shall be, and hereby is, enacted to
read as follows:
3.24.115: BUILDING IMPROVEMENT OR PUBLIC WORKS PROJECTS:
A. Pursuant to Section 11-39-101, et seq., Utah Code Annotated, or its successor:
1. If the city intends to undertake a building improvement or public works
project paid for by the city, and
a. The estimated cost of the project exceeds the bid limit (as
defined therein); and
b. The city elects to proceed with the project;
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2. Then the city shall enter into a contract for the completion of the project
with the lowest responsive responsible bidder.
B. 1. In determining the lowest responsive responsible bidder for any project
exceeding one hundred fifty thousand dollars ($150,000), as determined by a city
engineer's estimate, the procurement official shall evaluate the following factors
to determine whether the contractor and every subcontractor, if any, has
demonstrated to the city's satisfaction that they have and will maintain:
a. An offer of qualified health insurance available to a contractor's
and subcontractor's covered employees and the employee's dependents.
b. A drug and alcohol testing policy during the period of the
contract that applies to all covered individuals employed or hired by the
contractor or any subcontractor and require covered individuals to submit
to random testing under the drug and alcohol testing policy;
c. A program to actively recruit and/or employ veterans;
d. A job training program, such as, by way of example and not
limitation, a federal, state, and/or city recognized job training program;
e. A safety program; and
f. A formal policy of non-discrimination as required by federal,
state, and local law.
2. A bidder who has and will maintain an offer of qualified health
insurance, as set forth in Subsection Bla, whose bid is not more than ten percent
(10%) higher than another bidder for the same project who does not have such
insurance, shall be deemed the more responsive bidder.
3. A contractor and any subcontractor who cannot demonstrate
compliance with the factors in Subsections Bib to B 1 f shall be deemed non-
responsive and shall be disqualified.
C. For the purpose of this section,the following definitions shall apply:
CONTRACTOR: A person or entity who is or may be awarded a construction
contract for a building improvement or a public works project.
COVERED EMPLOYEE: An individual who provides part-time or full-time
services directly related to a design or construction contract for a contractor or
subcontractor, including but not limited to an individual in a safety sensitive position
such as a design position responsible for the safety of a building improvement or public
works project.
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DRUG AND ALCOHOL TESTING POLICY: A policy under which a
contractor or subcontractor tests a covered individual to establish, maintain, or enforce a
prohibition of:
1. The manufacture, distribution, dispensing,possession, or use of drugs
or alcohol, except the medically prescribed possession and use of a drug, and
2. The impairment of judgment or physical abilities due to the use of
drugs or alcohol.
HEALTH BENEFIT PLAN: An insurance policy that provides health care
coverage, including major medical expenses, or that is offered as a substitute for hospital
or medical expense insurance, such as a hospital confinement indemnity or limited
benefit plan. A health benefit plan does not include an insurance policy that provides
benefits solely for accidents, dental, income replacement, long-term care, a Medicare
supplement, a specific disease, vision, or a short-term limited duration where it is offered
and marketed as supplemental health insurance.
LOWEST RESPONSIVE RESPONSIBLE BIDDER: A prime contractor who:
1. Has submitted a bid in compliance with an invitation to bid and within
the requirements of the plans and specifications for a building improvement or
public works project;
2. Is the lowest bidder that satisfies the requirements of this chapter
relating to financial strength, past performance, integrity, reliability, and other
factors used to assess the ability of a bidder to perform fully and in good faith the
contract requirements;
3. Has furnished a bid bond or equivalent in money as a condition to the
award of a prime contract; and
4. Furnishes a payment and performance bond as required by law.
QUALIFIED HEALTH INSURANCE COVERAGE: At the time a contract is
entered into or renewed:
1. A health benefit plan (not including dental coverage) and employer
contribution level with a combined actuarial value at least actuarially equivalent
to the combined actuarial value of the benchmark plan determined by the
Children's Health Insurance Program under Section 26-40-106(2)(a), Utah Code
Annotated, as amended or its successor, and a contribution level of fifty percent
(50%) of the premiums for the employee and the dependents of the employee who
reside or work in the state under which:
a. The employer pays at least fifty percent(50%) of the premium
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for the employee and the dependents of the employee; and
b. For purposes of calculating actuarial equivalency under this
provision, rather than benchmark plan deductibles and the benchmark plan
out-of-pocket maximum based on income levels:
i. The annual deductible is one thousand dollars ($1,000)
per individual and three thousand dollars ($3,000) per family; and
ii. The annual out-of-pocket maximum is three thousand
dollars ($3,000)per individual and nine thousand dollars ($9,000)
per family; or
2. A federally qualified, high-deductible health plan(not including dental
coverage)that at a minimum has a deductible which is either:
a. The lowest deductible permitted for a federally qualified, high-
deductible plan; or
b. A deductible that is higher than the lowest deductible permitted
for a federally qualified, high-deductible health plan, but includes an
employer contribution to a health savings account in a dollar amount at
least equal to the dollar amount difference between the lowest deductible
permitted for a federally qualified, high-deductible plan and the deductible
for an employer-offered federal qualified, high-deductible plan; and
i. Has an out-of-pocket maximum that does not exceed
three (3)times the amount of the annual deductible; and
ii. The employer pays sixty percent (60%) of the premium
for the employee and the dependents of the employee who work or
reside in the state of Utah.
RANDOM TESTING: Periodic examination of a covered individual, selected on
the basis of chance, for drugs and alcohol in accordance with a drug and alcohol testing
policy.
SUBCONTRACTOR: Any person or entity who may be awarded a contract with
a contractor or another subcontractor to provide services or labor for the construction of a
building improvement or public works project. "Subcontractor" includes a trade,
contractor, or specialty contractor but does not include a supplier who provides only
materials, equipment, or supplies to a contractor or subcontractor.
VETERAN: An individual who:
1. Has served on active duty in the armed forces of the United States for
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more than one hundred eighty (180) consecutive days, or
2. Was a member of a reserve component who served in a campaign or
expedition for which a campaign medal has been authorized and who has been
separated or retired under honorable conditions, or
3. Any individual incurring an actual service-related injury or disability in
the line of duty, whether or not that person completed one hundred eighty (180)
consecutive days of active duty.
SECTION 3. Section 3.24.160, Salt Lake City Code, shall be, and hereby is, amended to
read as follows:
3.24.160: WAIVERS:
A. Except for the requirements set forth in Section 3.24.115 of this chapter,
waivers from the provisions of this chapter may be given as follows:
1. A procurement official may waive a procurement process required
under this chapter for the reasons set forth below. Such waiver shall be approved
in advance by the chief procurement officer for operational supplies and services,
or by the city engineer for construction related supplies and services, except in
case of an emergency. Waivers are permissible when:
a. Supplies or services are available from a sole source, or a
solicitation process would be unlikely to produce competition;
b. A particular supply or service is beneficial to the city in order to
match or service existing equipment or facilities;
c. The city needs services of a very specialized nature or in
connection with confidential matters, and procurement processes would
not be beneficial to obtaining them;
d. A waiver would be in the best interest of the city or the
convenience of the public; or
e. There is an emergency or unforeseen condition, or a threat to
public health, welfare, convenience or safety, as defined in the
procurement rules. Such procurements shall be made with as much
competition as practicable under the circumstances.
2. The mayor, with cause specified in writing, may waive any or all of the
requirements of this chapter for specific contracts, except the requirements set
forth in Section 3.24.115 of this chapter.
3. For contracts made within the scope of the city council's legislative
authority, the city council may, with cause specified in writing, waive any or all
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of the requirements of this chapter for specific contracts.
B. A written basis for any waiver made under this section shall be placed in the
procurement file, and written notice thereof shall be delivered to the chief procurement
officer in connection with the procurement of operational supplies and services, or the
city engineer in connection with the procurement of construction related supplies and
services.
C. Notwithstanding any provision of this chapter to the contrary, no waiver made
under this chapter shall violate any mandatory applicable federal, state or local law or
regulation.
SECTION 4. This ordinance shall become effective on the date of its first publication.
Passed by the City Council of Salt Lake City, Utah this 27 day of March , 2012.
C A ERS N
A TEST:
TY RECORDER
Transmitted to Mayor on March 29, 2012
Mayor's Action: 7 Approved. Vetoed.
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Bill No. 17 of 2012. : '' "
Published: 4-13-12 pate ''- -— 2" '-Q ,
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By: rBid Requirements Ordinance(clean 03-27-12).doc
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