059 of 2018 - An Ordinance amending Chapter 3.24.115, Building Improvement or Public Works Projects 0 18-1
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SALT LAKE CITY ORDINANCE
No. 59 of 2018
(An ordinance amending Chapter 3.24.115, Building Improvement or Public Works Projects)
WHEREAS, the City Council of Salt Lake City, Utah, desires to amend Chapter 3.24.115
of the Salt Lake City Code, relating to building improvements or public works projects; and
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That Section 3.24.115 of the Salt Lake City Code, relating to building
improvement or public works projects, and the same hereby is, amended as follows:
3.24.115: BUILDING IMPROVEMENT OR PUBLIC WORKS PROJECTS:
A. For the purpose of this section, the following definitions shall apply:
BID LIMIT: The estimated dollar cost of a building improvement or public works project which,
if exceeded, requires bids to be requested for the project. The bid limit is as follows:
1. For a building improvement:
a. For the year 2003, forty thousand dollars ($40,000.00); and
b. For each year after 2003, the amount of the bid limit for the previous year, plus an
amount calculated by multiplying the amount of the bid limit for the previous year by
the lesser of three percent (3%) or the actual percent change in the consumer price index
during the previous calendar year; and
2. For a public works project:
a. For the year 2003, one hundred twenty five thousand dollars ($125,000.00); and
b. For each year after 2003, the amount of the bid limit for the previous year, plus an
amount calculated by multiplying the amount of the bid limit for the previous year by
the lesser of three percent(3%) or the actual percent change in the consumer price index
during the previous calendar year.
BUILDING IMPROVEMENT: The construction or repair of a city building or structure.
CITY FUNDED: The use of funds from a budget approved by the Salt Lake City council,
including, without limitation, the library budget,to pay a contractor or subcontractor for work on
a building improvement or public works project regardless of whether the city obtains funds
from a state or federal government grant, or any other source of funds, to pay the cost of a
particular project.
CONSUMER PRICE INDEX: The "Consumer Price Index For All Urban Consumers" as
published by the bureau of labor statistics of the United States department of labor.
CONTRACT: A construction contract awarded by the city for a building improvement or a
public works project.
CONTRACTOR: A person or entity who is or may be awarded a contract by the city.
COVERED EMPLOYEE: An individual who provides services directly related to a construction
contract for a contractor or subcontractor. The employee must work at least 30 hours per
calendar week on the project and must meet employer eligibility waiting requirements for health
care insurance, which may not exceed the first day of the calendar month following 60 days after
the date of hire.
DESIGN-BUILD PROJECT: A building improvement or public works project costing over two
hundred fifty thousand dollars ($250,000.00) with respect to which:
1. Both design and construction are provided for in a single contract with a contractor or
combination of contractors capable of providing design-build services; and
2. Does not include a building improvement or public works project:
a. That is undertaken by the city under contract with a construction manager that
guarantees the contract price and is at risk for any amount over the contract price; and
b. Each component of which is competitively bid.
DESIGN-BUILD SERVICES: The engineering, architectural, and other services necessary to
formulate and implement a design build project, including its actual construction.
DRUG AND ALCOHOL TESTING POLICY: A policy under which a contractor or
subcontractor tests a covered employee to establish, maintain, or enforce the 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 healthcare 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.
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LOWEST RESPONSIVE RESPONSIBLE BIDDER: A 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 contract;
and
4. Furnishes a payment and performance bond as required by law.
PUBLIC WORKS PROJECT: The construction, replacement, or repair of:
1. A park or recreational facility;
2. A pipeline, culvert, dam, canal, or other system for water, sewage, stormwater, or flood
control;
3. An airport or any part thereof;
4. A street, transit facility, or transportation facility; or
5. Any other city facility except a building improvement.
QUALIFIED HEALTH INSURANCE COVERAGE: Means the same as that term is defined in
Section 26-40-115, Utah Code Annotated, as amended, or its successor.
RANDOM TESTING: Periodic examination of a covered employee, 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 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 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
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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.
B. 1. If the city intends to undertake a city funded building improvement or public works project,
and
a. The estimated cost of the project exceeds the "bid limit" as defined herein; and
b. The city elects to proceed with the project;
2. Then the city shall enter into a contract for the completion of the building improvement or
public works project with:
a. The lowest responsive responsible bidder; or
b. For a design-build project formulated by the city, except as provided in section 11-39-
107, Utah Code Annotated, or its successor, a responsible bidder that offers design-build
services; or
c. For a project involving a construction manager/general contractor, as provided in section
11-39-107 and any other applicable provision of chapter 11-39, Utah Code Annotated, or
its successor, a responsible bidder that offers construction manager/general contractor
services.
C. 1. This subsection Cl applies to a contractor if the contract, as determined by a city engineer's
estimate, is in the amount of$2,000,000 or more at the original execution of the contract.
In its bid for the contract, the contractor shall certify, and provide appropriate
documentation in a manner prescribed by the city before contract award and execution, to
the procurement official as to whether the contractor has and will maintain:
a. An offer of qualified health insurance available to the contractor's covered employees and
each covered employee's dependents;
b. A drug and alcohol testing policy during the period of the contract that:
(1) Applies to all covered employees of the contractor, and
(2) Requires covered employees 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. A federal and state recognized job training program qualifies;
e. A safety program; and
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f. A formal policy of nondiscrimination consistent with federal, state, and local law.
2. This subsection C2 applies if the contract involves a subcontract in the amount of
$1,000,000 or more at the original execution of the subcontract. In that case, the contractor
shall certify, and provide appropriate documentation in a manner prescribed by the city
before contract award and execution, to the procurement official as to whether (i) the
subcontract requires the subcontractor to have and maintain and (ii) the subcontractor has
and will maintain:
a. An offer of qualified health insurance available to the subcontractor's covered employees
and each covered employee's dependents;
b. A drug and alcohol testing policy during the period of the subcontract that:
(1) Applies to all covered employees of the subcontractor, and
(2) Requires covered employees 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. A federal and state recognized job training program qualifies;
e. A safety program; and
f. A formal policy of nondiscrimination consistent with federal, state, and local law.
3. A bidder who certifies that it has and will maintain an offer of qualified health insurance
coverage as set forth in subsection Cl, who complies with subsection C2 with respect to its
subcontractors, if any, and whose bid is not more than ten percent higher than the bid of any
other bidders who do not offer qualified health insurance coverage or do not comply with
subsection C2 with respect to their subcontractors, if any, will be deemed the more
responsive bidder.
4. A bidder who does not certify compliance with the factors in subsections C 1 b to Cif of this
section and, if there is a subcontract, subsections C2b to C2f, shall be deemed
nonresponsive and shall be disqualified.
5. The city may request a recertification by the selected contractor by submitting a written
request to the contractor. The contractor shall comply with the request by providing the
requested information to the city within 10 business days after receipt of the request. The
city may not make more than two such requests within any 12-month period.
6. Compliance with the requirements of this section by the bidder and all affected
subcontractors at any tier is subject to audit by the city. The bidder shall provide documents
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as requested by the city to comply with any such audit, including documents relating to
affected subcontractors.
D. 1. This section shall not apply to:
a. A change order or a modification to a contract, when the contract does not meet the
initial dollar threshold required by subsection Cl of this section;
b. A sole source contract;
c. An emergency procurement contract; and
d. A contract subject to a grant requirement or other legal obligation the city must honor as
a condition of receiving grant or other funds which, with regard to a particular building
improvement or public works project, limits the application of one or more of the bid
criteria in subsection Cl of this section.
2. The evaluation of a contract to which this section would apply, but for an exception set forth
in subsection D 1 of this section, shall include a written explanation that:
a. Describes the factual and legal basis for the conclusion that the exception applies, and
b. Is made a part of the bid record.
E. A contract or subcontract for a bid awarded under this section shall include provisions
requiring compliance with the terms of this section.
F. A building improvement or public works project may not be subdivided into smaller parts to
circumvent the requirements of subsection Cl of this section.
G. The failure of a contractor or subcontractor to meet the requirements of this section:
1. May not be the basis for a protest or other action from a prospective bidder, offeror, or
contractor under this chapter;
2. May not be used as the basis for any action or suit by someone other than the city that
would suspend, disrupt, or terminate a building improvement or public works project; and
3. May not be used by an employee of a contractor or subcontractor or any other third party as
a basis for any private action or suit against the city for damages for the failure of a
contractor or subcontractor to meet the requirements of this section.
H 1. A contractor that fails to meet the requirements of this section during the duration of the
contract is subject to the actions described below in this subsection(1) and the penalties
described in subsection(2) below. A contractor is not subject to those actions or penalties
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due to the action or inaction of a subcontractor. The city procurement officer, at the city's
sole discretion, may take any of the following actions against the contractor:
a. Order an audit, at the sole expense of the contractor, to determine the extent of such non-
compliance;
b. Terminate the contractor's contract for failure to comply with the terms of the bid;
c. Immediately award the affected contract to the next lowest responsive and responsible
bidder; or
d. Bring legal action against the contractor, on behalf of the city and affected employees,
for monetary damages.
2. The penalties that may be imposed if a bidder or contractor to which this section applies
intentionally violates the requirements of this section include:
a. for a first violation, a six-month suspension of the bidder from bidding on city
projects; and
b. for a second violation, an action for debarment of the bidder from bidding on city
projects.
SECTION 2. Effective Date. This ordinance shall become effective on the date of its
first publication.
Passed by the City Council of Salt Lake City, Utah, this 13th day of Nov PmhPr
2018.
CHAIRPERSON
ATTEST AND COUNTERSIGN:
L( 11)6/1(re'
CITY RECORDER
Transmitted to Mayor on November 14, 2018 •
Mayor's Action: V- Approved. Vetoed.
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A OR
�'��r�% C T ""�+ SALT LAKE CITY ATTORNEY'S OFFICE
Pam..... Y +
CITY RECORDER APROVED AS TO FORM
�� :i: ; �'; Date: 10 — —it
J ~' B �—
�� i + Boyd Ferg son,Senior Ci Attorney
(SEAL) •h`•�p (04'
Bill No. 59 of 2018.
Published: November 20, 2018.
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