Second Substitute S.B. 155

Text Box
- 1 -

House Floor Amendments 3-10-2011 je/va This document includes House Floor Amendments incorporated into the bill on Thu, Mar 10, 2011 at 4:47 PM by jeyring. --> Representative Jim Nielson proposes the following substitute bill:

1 POLITICAL SUBDIVISION'S PROCUREMENT PROCESS
2 FOR CONSTRUCTION PROJECTS
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Benjamin M. McAdams
6 House Sponsor: Jim Nielson
7
8 LONG TITLE
9 General Description:
10 This bill amends requirements for a local entity to undertake a building improvement or
11 public works project.
12 Highlighted Provisions:
13 This bill:
14 . authorizes a municipality to adopt procedures of Title 63G, Chapter 6, Utah
15 Procurement Code, with certain exceptions;
16 . authorizes a local entity to adopt procedures for certain construction methods; H. [ and ]
16a . authorizes a city of the first class, a local district, or a special service district to
16b adopt and follow provisions of Title 63G, Chapter 6, Utah Procurement Code, for a public
16c works project using design-build that costs $10,000,000 or more; and .H
17 . makes technical corrections.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
23a H. 11-39-103, as last amended by Laws of Utah 2009, First Special Session, Chapter 5 .H
24 11-39-107, as last amended by Laws of Utah 2008, Chapter 382
25

Text Box
- 2 -

House Floor Amendments 3-10-2011 je/va 26

Be it enacted by the Legislature of the state of Utah:
26a H. Section 1. Section 11-39-103 is amended to read:
26b 11-39-103. Requirements for undertaking a building improvement or public works project --
26c Request for bids -- Authority to reject bids.
26d (1) If the estimated cost of the building improvement or public works project exceeds the bid
26e limit, the local entity shall, if it determines to proceed with the building improvement or public works
26f project:
26g (a) request bids for completion of the building improvement or public works project by:
26h (i) (A) publishing notice at least twice in a newspaper published or of general circulation in the
26i local entity at least five days before opening the bids; or
26j (B) if there is no newspaper published or of general circulation in the local entity as described
26k in Subsection (1)(a)(i)(A), posting notice at least five days before opening the bids in at least five public
26l places in the local entity and leaving the notice posted for at least three days; and
26m (ii) publishing notice in accordance with Section 45-1-101, at least five days before opening the
26n bids; and
26o (b) except as provided in Subsection (3), enter into a contract for the completion of the
26p building improvement or public works project with:
26q (i) the lowest responsive responsible bidder; or
26r (ii) for a design-build project [ that the ] formulated by a local entity [ began formulating
26s before March 1, 2004 and with respect to which a contract is entered into before September 1, 2004 ] ,
26t except as provided in Section 11-39-107, a responsible bidder that:
26u (A) offers design-build services; and
26v (B) satisfies the local entity's criteria relating to financial strength, past performance,
26w integrity, reliability, and other factors that the local entity uses to assess the ability of a bidder to
26x perform fully and in good faith the contract requirements for a design-build project.
26y (2) (a) Each notice under Subsection (1)(a) shall indicate that the local entity may reject any or
26z all bids submitted.
26aa (b) (i) The cost of a building improvement or public works project may not be divided to
26ab avoid:
26ac (A) exceeding the bid limit; and
26ad (B) subjecting the local entity to the requirements of this section.
26ae (ii) Notwithstanding Subsection (2)(b)(i), a local entity may divide the cost of a building
26af improvement or public works project that would, without dividing, exceed the bid limit if the local
26ag entity complies with the requirements of this section with respect to each part of the building
26ah improvement or public works project that results from dividing the cost.
26ai (3) (a) The local entity may reject any or all bids submitted.
26aj (b) If the local entity rejects all bids submitted but still intends to undertake the

Text Box
- 2a -

House Floor Amendments 3-10-2011 je/va 26ak

building improvement or public works project, the local entity shall again request bids by following
26al the procedure provided in Subsection (1)(a).
26am (c) If, after twice requesting bids by following the procedure provided in Subsection (1)(a), the
26an local entity determines that no satisfactory bid has been submitted, the governing body may undertake
26ao the building improvement or public works project as it considers appropriate. .H
27 Section 1. Section 11-39-107 is amended to read:
28 11-39-107. Procurement code.
29 (1) This chapter may not be construed to:
30 (a) prohibit a county or municipal legislative body from adopting the procedures of the
31 procurement code; or
32 (b) limit the application of the procurement code to a local district or special service
33 district.
34 (2) A local entity may adopt procedures for the following construction contracting
35 methods:
36 (a) construction manager/general contractor, as defined in Section 63G-6-103 ; or
37 (b) a method that requires that the local entity draft a plan, specifications, and an
38 estimate for the building improvement or public works project.
38a H. (3) For a public works project only and that costs $10,000,000 or more, the following
38b may enter into a contract for design-build, as defined in Section 63G-6-103, and adopt the
38c procedures and follow the provisions of the procurement code for the procurement of and as
38d the procedures and provisions relate to a design-build:
38e (a) a city of the first class;
38f (b) a local district; or
38g (c) a special service district. .H
39 [(2)] H. [ (3) ] (4) .H (a) In seeking bids and awarding a contract for a building
39a improvement or
40 public works project, a county or a municipal legislative body may elect to follow the
41 provisions of the procurement code, as the county or municipal legislative body considers
42 appropriate under the circumstances, for specification preparation, source selection, or contract

Text Box
- 2b -

House Floor Amendments 3-10-2011 je/va 43

formation.
44 (b) A county or municipal legislative body's election to adopt the procedures of the
45 procurement code may not excuse the county or municipality, respectively, from complying
46 with the requirements to award a contract for work in excess of the bid limit and to publish
47 notice of the intent to award.
48 (c) An election under Subsection [(2)] H. [ (3) ] (4) .H (a) may be made on a case-by-case
48a basis,
49 unless the county or municipality has previously adopted the procurement code as permitted by
50 Subsection 63G-6-104 (3)(e).
51 (d) The county or municipal legislative body shall:
52 (i) make each election under Subsection [(2)] H. [ (3) ] (4) .H (a) in an open meeting; and
53 (ii) specify in its action the portions of the procurement code to be followed.
54 [(3)] H. [ (4) ] (5) .H If the estimated cost of the building improvement or public works
54a project
55 proposed by a local district or special service district exceeds the bid limit, the governing body
56 of the local district or special service district may, if it determines to proceed with the building

Text Box
- 3 - 57 improvement or public works project, use the competitive procurement procedures of the
58 procurement code in place of the comparable provisions of this chapter.

*SB0155S02*