095 of 2012 - Amending section 3.24.115 to clarify bid criteria for city funded building improvement an public wor 0 12-1
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SALT LAKE CITY ORDINANCE
No. 95 of 2012
(Clarifying bid criteria for city funded building improvement and public works projects)
AN ORDINANCE AMENDING SECTION 3.24.115,SALT LAKE CITY CODE, TO
CLARIFY APPLICATION OF BID CRITERIA FOR CITY FUNDED BUILDING
IMPROVEMENT AND PUBLIC WORKS PROJECTS.
WHEREAS, on March 27, 2012 the Salt Lake City Council adopted Ordinance 17 of
2012 establishing and amending criteria for determining the lowest responsive responsible bidder
for a city funded building improvement or public works project; and
WHEREAS, it is proposed that Section 3.24.115,Salt Lake City Code, be amended to
clarify that such criteria apply to all city funded building improvement and public works
projects; and
WHEREAS,the City Council finds adoption of this ordinance reasonably furthers the
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 3.24.115,Salt Lake City Code, shall be, and hereby is, amended to
read as follows:
3.24.115: BUILDING IMPROVEMENT AND PUBLIC WORKS PROJECTS:
A. 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:
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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.
B. 1. In determining the lowest responsive responsible bidder under
Subsection A.2.a or a responsible bidder under Subsections A.2.b or A.2.c for any
project exceeding two hundred fifty thousand dollars ($250,000), as determined
by a city engineer's estimate, the contractor and every subcontractor, if any, shall
certify to the procurement official whether 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:
i. Applies to all covered employees of the contractor or any
subcontractor, and
ii. 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, 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 consistent with federal,
state, and local law.
2. A bidder who has and will maintain an offer of qualified health
insurance coverage, as set forth in Subsection B.1.a of this section, 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.
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3. A contractor and any subcontractor who does not certify compliance
with the factors in Subsections B.1.b to B.1.f of this subsection shall be deemed
non-responsive and shall be disqualified.
C. 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
B.1 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 (1) or more of the bid criteria
in Subsection B.1.
2. The evaluation of a contract to which this Section 3.24.115 would
apply, but for an exception set forth in Subsection C.1, 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.
D. A contract or subcontract for a bid awarded under this section shall include
provisions requiring compliance with the terms of the bid.
E. A building improvement or public works project may not be subdivided into
smaller parts to circumvent the requirements of Subsection 3.24.115.B.1.
F. The failure of a contractor or subcontractor to meet the requirements of this
section:
1. May not be the basis for a protest under this Chapter 3.24 or other
action;
2. May not be used as the basis for any action or suit 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
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for damages for the failure of a contractor or subcontractor to meet the
requirements of this section.
G. 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, $40,000; 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, $125,000; 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.
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
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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.
DESIGN BUILD PROJECT: A building improvement or public works project
costing over two hundred fifty thousand dollars ($250,000) 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 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
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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.
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,
storm water, 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 IIEALTH 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 premium for the employee and the dependents of the employee who
reside or work in the state of Utah under which:
a. The employer pays at least fifty percent (50%) of the premium
for the employee and the dependents of the employee who reside or work
in the state of Utah; and
b. For purposes of calculating actuarial equivalency under this
provision, rather than benchmark plan's deductible and the benchmark
plan's 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
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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:
a. Has a deductible that is either:
i. The lowest deductible permitted for a federally qualified
high-deductible plan; or
ii. 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;
b. Has an out-of-pocket maximum that does not exceed three (3)
times the amount of the annual deductible; and
c. 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 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.
SECTION 2. This ordinance shall become effective on the date of its first publication.
Passed by the City Council of Salt Lake City, Utah this 11 day ofDecember , 2012.
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Transmitted to Mayor on December 18, 2012 .
Mayor's Action: 7\ Approved. Vetoed.
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Bill No. 95 of 2012.
Published: 12-24-12
Bid Requirements Amendments Ordinance(as adopted 12-11-12).doc
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