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S.B. 223






Sponsor: Dan R. Eastman

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Procurement Code and the Public Transit Districts Code to
             10      amend provisions related to the procurement of construction for transportation projects.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that public transit facilities and works construction contracts that exceed
             14      $25,000 shall be let in accordance with the Utah Procurement Code;
             15          .    provides that the procurement of design-build transportation project contracts is an
             16      authorized source selection method for the selection of the Construction
             17      Manager/General Contractor;
             18          .    repeals the estimated $50,000,000 transportation project cost threshold for a
             19      transportation agency to award a design-build contract;
             20          .    provides that certain transportation agencies may award design-build transportation
             21      project contracts for any transportation project by following certain requirements;
             22      and
             23          .    makes technical changes.
             24      Monies Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None

             28      Utah Code Sections Affected:
             29      AMENDS:
             30          17A-2-1016, as last amended by Chapter 254, Laws of Utah 2000
             31          63-56-36, as last amended by Chapter 185, Laws of Utah 2002
             32          63-56-36.1, as last amended by Chapter 318, Laws of Utah 2000
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 17A-2-1016 is amended to read:
             36           17A-2-1016. Powers of incorporated district -- Bidding -- Eminent domain.
             37          (1) As used in this section, "operator" means any city, public agency, person, firm, or
             38      private corporation engaged in the transportation of passengers for hire.
             39          (2) Any district incorporated under this part may:
             40          (a) have perpetual succession;
             41          (b) sue and be sued in all actions and proceedings and in all courts and tribunals of
             42      competent jurisdiction;
             43          (c) adopt a corporate seal and alter it at pleasure;
             44          (d) levy and collect taxes only for paying:
             45          (i) the principal and interest of bonded indebtedness of the district; or
             46          (ii) any final judgment obtained against the district beyond the amount of any
             47      collectable insurance or indemnity policy if the district is required by final order of any court of
             48      competent jurisdiction to levy a tax to pay the judgment;
             49          (e) take by grant, purchase, bequest, devise, or lease, and to hold, enjoy, lease, sell,
             50      encumber, alien, or otherwise dispose of real or personal property of every kind within the
             51      district;
             52          (f) make contracts and enter into stipulations of any nature, including contracts and
             53      stipulations:
             54          (i) to indemnify and save harmless;
             55          (ii) to do all acts to exercise the powers granted in this part; and
             56          (iii) with any department or agency of the United States of America, of the state, or
             57      with any public agency or private person, firm, or corporation upon terms and conditions the
             58      board of trustees finds are in the best interests of the district;

             59          (g) (i) insure against:
             60          (A) loss of revenues from accident or destruction of the system or any part of the
             61      system, from any cause whatsoever; or
             62          (B) public liability or property damage, or against all other types of events, acts, or
             63      omissions; and
             64          (ii) provide in the proceedings authorizing the issuance of any bonds for the carrying of
             65      any other insurance, in an amount and of such character as may be specified, and for the
             66      payment of the premiums on the insurance;
             67          (h) provide a public transit system for the transportation of passengers and their
             68      incidental baggage;
             69          (i) purchase all supplies, equipment, and materials;
             70          (j) construct facilities and works, but when the expenditure required exceeds $25,000
             71      construction shall be let [by contract to the lowest responsible bidder or proposer] in
             72      accordance with Title 63, Chapter 56, Utah Procurement Code;
             73          (k) acquire, contract for, lease, construct, own, operate, control, or use rights-of-way,
             74      rail lines, monorails, bus lines, stations, platforms, switches, yards, terminals, parking lots, any
             75      facilities necessary or convenient for public transit service, and all structures necessary for
             76      access by persons and vehicles;
             77          (l) hire, lease, or contract for the supplying of, or management of, any facilities,
             78      operations, equipment, services, employees, or management staff of any operator and provide
             79      for subleases or subcontracts by the operator upon terms that are in the public interest; and
             80          (m) operate feeder bus lines and other feeder services as necessary.
             81          (3) (a) Bids or proposals shall be advertised through public notice as determined by the
             82      board.
             83          (b) The notice may include publication in a newspaper of general circulation in the
             84      district, trade journal, or other method determined by the board at least once and not less than
             85      ten days prior to the expiration of the period within which bids or proposals are received.
             86          (c) The board may reject any and all bids or proposals and readvertise or give renotice
             87      at its discretion.
             88          (d) If, after rejecting bids or proposals, the board determines and declares by vote of
             89      two-thirds of all its members present that in its opinion the supplies, equipment, and materials

             90      may be purchased at a lower price in the open market, the board may proceed to purchase the
             91      same in the open market without further observance of the provisions requiring contracts, bids
             92      or proposals, advertisement, or notice.
             93          (e) Contracts, in writing or otherwise, may be let without advertising for or inviting
             94      bids when any repairs, alterations, or other work or the purchase of materials, supplies,
             95      equipment, or other property is found by the board upon a two-thirds vote of its members
             96      present to be of urgent necessity, or where the general manager certifies by affidavit that there
             97      is only one source for the required supplies, equipment, and materials, or construction items.
             98          (f) If any payment on a contract with a private contractor to construct facilities under
             99      this section is retained or withheld, it shall be retained or withheld and released as provided in
             100      Section 13-8-5 .
             101          (4) (a) Installations in state highways or freeways are subject to the approval of the
             102      Department of Transportation.
             103          (b) It is presumed that the use of the streets, roads, highways, and other public places
             104      by the district for any of the purposes permitted in this section constitutes no greater burden on
             105      adjoining properties than the uses existing on July 9, 1969.
             106          (c) If facilities, other than state highways or freeways referred to in Subsection (2),
             107      including streets, roads, highways, pipelines, sewers, water mains, storm drains, poles, and
             108      communications wires of another public agency of the state, or of a private owner must be
             109      relocated, replaced, or altered in order for the district to construct or operate its system, or to
             110      preserve and maintain already constructed district facilities, the facilities shall be relocated,
             111      replaced, or altered with reasonable promptness by the respective public corporation, state, or
             112      private owner and the district shall by prior agreement reimburse the public corporation, state,
             113      or private owner for the reasonable cost incurred in relocation, replacement, or alteration.
             114          (d) The district may enter into an agreement with any city or county having jurisdiction
             115      over the street, road, or highway involved and, as may be provided by agreement, close any city
             116      street or county road at or near the point of its interception with any district facility or provide
             117      for carrying the city street or county road over or under or to a connection with the district
             118      facility and may do any and all work on the city street or county road as is necessary. A city
             119      street or county road may not be closed directly or indirectly by the construction of district
             120      facilities except:

             121          (i) pursuant to agreement; or
             122          (ii) while temporarily necessary during the construction of district facilities.
             123          (5) The state, a municipality, or a county may acquire private property interests by
             124      eminent domain pursuant to Title 78, Chapter 34, Eminent Domain, including fee simple,
             125      easements, air rights, rights-of-way, and other private property interests necessary to the
             126      establishment and operation of a public transit district.
             127          Section 2. Section 63-56-36 is amended to read:
             128           63-56-36. Alternative methods of construction contracting management.
             129          (1) (a) Rules shall provide as many alternative methods of construction contracting
             130      management as determined to be feasible.
             131          (b) These rules shall:
             132          (i) grant to the chief procurement officer or the head of the purchasing agency
             133      responsible for carrying out the construction project the discretion to select the appropriate
             134      method of construction contracting management for a particular project; and
             135          (ii) require the procurement officer to execute and include in the contract file a written
             136      statement setting forth the facts which led to the selection of a particular method of
             137      construction contracting management for each project.
             138          (c) Before choosing a construction contracting management method, the chief
             139      procurement officer or the head of the purchasing agency responsible for carrying out the
             140      construction project shall consider the following factors:
             141          (i) when the project must be ready to be occupied;
             142          (ii) the type of project;
             143          (iii) the extent to which the requirements of the procuring agencies and the ways in
             144      which they are to be met are known;
             145          (iv) the location of the project;
             146          (v) the size, scope, complexity, and economics of the project;
             147          (vi) the source of funding and any resulting constraints necessitated by the funding
             148      source;
             149          (vii) the availability, qualification, and experience of state personnel to be assigned to
             150      the project and how much time the state personnel can devote to the project; and
             151          (viii) the availability, qualifications, and experience of outside consultants and

             152      contractors to complete the project under the various methods being considered.
             153          (2) (a) Rules adopted by state public procurement units and local public procurement
             154      units to implement this section may authorize the use of a Construction Manager/General
             155      Contractor as one method of construction contracting management.
             156          (b) Those rules shall require that:
             157          (i) the Construction Manager/General Contractor shall be selected using one of the
             158      source selection methods provided for in Sections 63-56-20 through 63-56-35.8 [of this
             159      chapter] and Section 63-56-36.1 ; and
             160          (ii) when entering into any subcontract that was not specifically included in the
             161      Construction Manager/General Contractor's cost proposal submitted under the requirements of
             162      Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that
             163      subcontractor by using one of the source selection methods provided for in Sections 63-56-20
             164      through 63-56-35.8 [of this chapter] in the same manner as if the subcontract work was
             165      procured directly by the state.
             166          (3) Procurement rules adopted by the State Building Board under Subsection (1) for
             167      state building construction projects may authorize the use of a design-build provider as one
             168      method of construction contracting management.
             169          Section 3. Section 63-56-36.1 is amended to read:
             170           63-56-36.1. Procurement of design-build transportation project contracts.
             171          (1) As used in this section:
             172          (a) "Design-build transportation project contract" means the procurement of both the
             173      design and construction of a transportation project in a single contract with a company or
             174      combination of companies capable of providing the necessary engineering services and
             175      construction.
             176          (b) "Transportation agency" means:
             177          (i) the Department of Transportation;
             178          (ii) a county of the first or second class, as defined in Section 17-50-501 ;
             179          (iii) a municipality of the first class, as defined in Section 10-2-301 ;
             180          (iv) a public transit district that has more than 200,000 people residing within its
             181      boundaries; and
             182          (v) a public airport authority, as [created under Title 17A, Chapter 2, Part 15, Airport

             183      Authorities] defined in Section 72-10-102 .
             184          [(2) Except as provided in Subsection (3), a transportation agency may award a
             185      design-build transportation project contract for any transportation project that has an estimated
             186      cost of at least $50,000,000 by following the requirements of this section.]
             187          [(3) The Department of Transportation may:]
             188          (2) A transportation agency may:
             189          (a) award a design-build transportation project contract for any transportation project
             190      by following the requirements of this section; and
             191          (b) make rules, by following the procedures and requirements of Title 63, Chapter 46a,
             192      Utah Administrative Rulemaking Act, establishing requirements for the procurement of its
             193      design-build transportation project contracts in addition to those required by this section.
             194          [(4)] (3) (a) Before entering a design-build transportation project contract, a
             195      transportation agency may issue a request for qualifications to prequalify potential contractors.
             196          (b) Public notice of the request for qualifications shall be given in accordance with
             197      policy board rules.
             198          (c) A transportation agency shall require, as part of the qualifications specified in the
             199      request for qualifications, that potential contractors at least demonstrate their:
             200          (i) construction experience;
             201          (ii) design experience;
             202          (iii) financial, manpower, and equipment resources available for the project; and
             203          (iv) experience in other design-build transportation projects with attributes similar to
             204      the project being procured.
             205          (d) The request for qualifications shall identify the number of eligible competing
             206      proposers that the transportation agency will select to submit a proposal, which must be at least
             207      two.
             208          [(5)] (4) (a) The transportation agency shall:
             209          (i) evaluate the responses received from the request for qualifications;
             210          (ii) select from their number those qualified to submit proposals; and
             211          (iii) invite those respondents to submit proposals based upon the transportation
             212      agency's request for proposals.
             213          (b) If the transportation agency fails to receive at least two qualified eligible competing

             214      proposers, the transportation agency shall readvertise the project.
             215          [(6)] (5) The transportation agency shall issue a request for proposals to those qualified
             216      respondents that:
             217          (a) includes a scope of work statement constituting an information for proposal that
             218      may include:
             219          (i) preliminary design concepts;
             220          (ii) design criteria, needs, and objectives;
             221          (iii) warranty and quality control requirements;
             222          (iv) applicable standards;
             223          (v) environmental documents;
             224          (vi) constraints;
             225          (vii) time expectations or limitations;
             226          (viii) incentives or disincentives; and
             227          (ix) other special considerations;
             228          (b) requires submitters to provide:
             229          (i) a sealed cost proposal;
             230          (ii) a critical path matrix schedule, including cash flow requirements;
             231          (iii) proposal security; and
             232          (iv) other items required by the department for the project; and
             233          (c) may include award of a stipulated fee to be paid to submitters who submit
             234      unsuccessful proposals.
             235          [(7)] (6) The transportation agency shall:
             236          (a) evaluate the submissions received in response to the request for proposals from the
             237      prequalified proposers;
             238          (b) comply with rules relating to discussion of proposals, best and final offers, and
             239      evaluations of the proposals submitted; and
             240          (c) after considering price and other identified factors, award the contract to the
             241      responsible proposer whose proposal is most advantageous to the state.

Legislative Review Note
    as of 2-10-04 9:01 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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