1     
SCHOOL CONSTRUCTION PROJECTS AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Melissa G. Ballard

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends requirements for a local education agency (LEA) related to school
10     construction.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     requires an LEA to appoint an employee of the LEA or a contracted person to
15     oversee a school construction project;
16          ▸     provides requirements for a person who oversees a school construction project;
17          ▸     requires an LEA to receive at least three proposals for an architect and three bids for
18     a contractor for a school construction project;
19          ▸     prohibits an LEA from issuing a single contract for design services and contractor
20     services for a school construction project;
21          ▸     requires the State Board of Education to make rules; and
22          ▸     makes technical and conforming changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:

28     AMENDS:
29          53E-3-702, as renumbered and amended by Laws of Utah 2018, Chapter 1
30          53E-3-703, as renumbered and amended by Laws of Utah 2018, Chapter 1
31          53E-3-707, as renumbered and amended by Laws of Utah 2018, Chapter 1
32          53E-3-708, as renumbered and amended by Laws of Utah 2018, Chapter 1
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 53E-3-702 is amended to read:
36          53E-3-702. Board to adopt public school construction guidelines.
37          (1) As used in this section:
38          (a) "Board" means the State Board of Education.
39          (b) "Public school construction" means construction work on a new public school.
40          (2) (a) The board shall:
41          (i) adopt guidelines for public school construction; and
42          (ii) consult with the Division of Facilities Construction and Management
43     Administration on proposed guidelines before adoption.
44          (b) The board shall ensure that guidelines adopted under Subsection (2)(a)(i) maximize
45     funds used for public school construction and reflect efficient and economic use of those funds,
46     including adopting guidelines that address a school's essential needs rather than encouraging or
47     endorsing excessive costs per square foot of construction or nonessential facilities, design, or
48     furnishings.
49          (3) Before a school district or charter school may begin public school construction, the
50     school district or charter school shall:
51          (a) review the guidelines adopted by the board under this section; and
52          (b) take into consideration the guidelines when planning the public school
53     construction.
54          (4) In adopting the guidelines for public school construction, the board shall consider
55     the following and adopt alternative guidelines as needed:
56          (a) location factors, including whether the school is in a rural or urban setting, and
57     climate factors;
58          (b) variations in guidelines for significant or minimal projected student population

59     growth;
60          (c) guidelines specific to schools that serve various populations and grades, including
61     high schools, junior high schools, middle schools, elementary schools, alternative schools, and
62     schools for people with disabilities; and
63          (d) year-round use.
64          (5) The guidelines shall address the following:
65          (a) square footage per student;
66          (b) minimum and maximum required real property for a public school;
67          (c) athletic facilities and fields, playgrounds, and hard surface play areas;
68          (d) cost per square foot;
69          (e) minimum and maximum qualities and costs for building materials;
70          (f) design efficiency;
71          (g) parking;
72          (h) furnishing;
73          (i) proof of compliance with applicable building codes; and
74          (j) safety.
75          (6) The state board shall establish in rule an amount of money for a building project
76     cost threshold that applies to the requirements described in Section 53E-3-703.
77          Section 2. Section 53E-3-703 is amended to read:
78          53E-3-703. Construction and alteration of schools and plants -- Advertising for
79     bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
80     school boards -- Interest of local school board members.
81          (1) (a) As used in this section, "cost threshold" means the amount of money established
82     by the state board in rule under Subsection 53E-3-702(6).
83          (b) As used in this section, the word "sealed" does not preclude acceptance of
84     electronically sealed and submitted bids or proposals in addition to bids or proposals manually
85     sealed and submitted.
86          (2) (a) Prior to the construction of any school or the alteration of any existing school
87     plant, if the total estimated accumulative building project cost exceeds [$80,000] the cost
88     threshold, a local school board shall advertise for bids on the project at least 10 days before the
89     bid due date.

90          (b) The advertisement shall state:
91          (i) that proposals for the building project are required to be sealed in accordance with
92     plans and specifications provided by the local school board;
93          (ii) where and when the proposals will be opened;
94          (iii) that the local school board reserves the right to reject any and all proposals; and
95          (iv) that a person that submits a proposal is required to submit a certified check or bid
96     bond, of not less than 5% of the bid in the proposal, to accompany the proposal.
97          (c) The local school board shall publish the advertisement, at a minimum:
98          (i) on the local school board's website; or
99          (ii) on a state website that is:
100          (A) owned or managed by, or provided under contract with, the Division of Purchasing
101     and General Services; and
102          (B) available for the posting of public procurement notices.
103          (3) (a) The local school board shall meet at the time and place specified in the
104     advertisement and publicly open and read all received proposals.
105          (b) [If] Subject to Subsection (9), if satisfactory bids are received, the local school
106     board shall award the contract to the lowest responsive and responsible bidder.
107          (c) If none of the proposals are satisfactory, all shall be rejected.
108          (d) The local school board [shall] may again advertise in the manner provided in this
109     section.
110          (e) If, after advertising a second time no satisfactory bid is received or fewer than three
111     bids are received, the local school board may:
112          (i) if no satisfactory bid is received, proceed under [its] the local school board's own
113     direction with the required project[.]; or
114          (ii) if fewer than three bids are received, select one of the bids received.
115          (4) (a) The check or bond required under Subsection (2)(b) shall be drawn in favor of
116     the local school board.
117          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
118     additional bonds required under this section, then the bidder's check or bond is forfeited to the
119     district.
120          (5) A local school board shall require payment and performance bonds of the

121     successful bidder as required in Section 63G-6a-1103.
122          (6) (a) A local school board may require in the proposed contract that up to 5% of the
123     contract price be withheld until the project is completed and accepted by the board.
124          (b) If money is withheld, the local school board shall place it in an interest bearing
125     account, and the interest accrues for the benefit of the contractor and subcontractors.
126          (c) This money shall be paid upon completion of the project and acceptance by the
127     local school board.
128          (7) (a) [A] Except as provided in Subsection (7)(b), a local school board may not [bid]
129     use the local school board's resources on projects within the district if the total accumulative
130     estimated cost exceeds [$80,000] the cost threshold.
131          (b) The local school board may use [its] the local school board's resources if no
132     satisfactory bids are received under this section.
133          (8) [If the] Subject to Subsection (9), if a local school board determines in accordance
134     with Section 63G-6a-1302 to use a construction manager/general contractor as [its] the local
135     school board's method of construction contracting management on projects where the total
136     estimated accumulative cost exceeds [$80,000, it] the cost threshold, the local school board
137     shall select the construction manager/general contractor in accordance with the requirements of
138     Title 63G, Chapter 6a, Utah Procurement Code.
139          (9) If a local school board receives fewer than three proposals for an architect or fewer
140     than three bids for a general contractor for a school building project, the local school board
141     may reissue the advertisement.
142          [(9)] (10) A local school board member may not have a direct or indirect financial
143     interest in the construction project contract.
144          Section 3. Section 53E-3-707 is amended to read:
145          53E-3-707. School building construction and inspection manual -- Annual
146     construction and inspection conference -- Verification of school construction inspections
147     -- LEA to appoint responsible person.
148          (1) As used in this section, "local education agency" or "LEA" means:
149          (a) a school district; or
150          (b) a charter school.
151          [(1)] (2) (a) The State Board of Education, through the state superintendent of public

152     instruction, shall develop and distribute to each school district a school building construction
153     and inspection resource manual.
154          (b) The manual shall be provided to a charter school upon request of the charter school.
155          [(2)] (3) (a) The manual shall include:
156          (i) current legal requirements; and
157          (ii) information on school building construction and inspections, including the
158     guidelines adopted by the State Board of Education in accordance with Section 53E-3-702.
159          (b) The state superintendent shall review and update the manual at least once every
160     three years.
161          [(3)] (4) The board shall provide for an annual school construction conference to allow
162     a representative from each [school district and charter school] LEA to:
163          (a) receive current information on the design, construction, and inspection of school
164     buildings;
165          (b) receive training on such matters as:
166          (i) using properly certified building inspectors;
167          (ii) filing construction inspection summary reports and the final inspection certification
168     with the local governmental authority's building official;
169          (iii) the roles and relationships between [a school district or charter school] an LEA
170     and the local governmental authority, either a county or municipality, as related to the
171     construction and inspection of school buildings; and
172          (iv) adequate documentation of school building inspections; and
173          (c) provide input on any changes that may be needed to improve the existing school
174     building inspection program.
175          [(4)] (5) The board shall develop a process to verify that inspections by qualified
176     inspectors occur in each [school district or charter school] LEA.
177          (6) An LEA shall:
178          (a) appoint a person to have direct administrative and operational control of all
179     construction, renovation, and inspection of public school facilities within the LEA; and
180          (b) ensure that the person appointed under Subsection (6)(a) has:
181          (i) knowledge of building construction and repair, safety precautions, building trades,
182     contracting procedures, and laws pertaining to construction; and

183          (ii) the ability to oversee building construction projects, read and interpret blueprints,
184     maintain standards of quality, and evaluate construction or design problems and suggest
185     solutions.
186          (7) To fulfill the requirements described in Subsection (6), an LEA may:
187          (a) appoint an employee of the LEA; or
188          (b) in accordance with Title 63G, Chapter 6a, Utah Procurement Code, contract with a
189     person who is not an employee of the LEA.
190          Section 4. Section 53E-3-708 is amended to read:
191          53E-3-708. Licensed architect to prepare plans -- Contracts for architect to be
192     procured separately -- Prohibition on design-build contracts -- Payment for architecture
193     services.
194          (1) As used in this section, "design-build" means the same as that term is defined in
195     Section 63G-6a-103.
196          (2) A licensed architect shall prepare the plans and specifications for the construction
197     or alteration of school buildings.
198          (3) (a) A local school board shall procure architecture services for a school
199     construction project separately from procuring general contracting or other construction
200     services.
201          (b) A local school board may not issue a design-build contract for a school construction
202     project.