1     
SCHOOL CONSTRUCTION PROJECTS AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Melissa G. Ballard

5     
Senate Sponsor: David G. Buxton

6     

7     LONG TITLE
8     General Description:
9          This bill amends requirements for a local education agency related to school
10     construction.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     requires a local education agency (LEA) to appoint an employee of the LEA or a
15     contracted person to 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 with certain exceptions;
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 last amended by Laws of Utah 2019, Chapter 186
30          53E-3-703, as last amended by Laws of Utah 2019, Chapter 186
31          53E-3-707, as last amended by Laws of Utah 2019, Chapter 186
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. State board to adopt public school construction guidelines.
37          (1) As used in this section, "public school construction" means construction work on a
38     new public school.
39          (2) (a) The state board shall:
40          (i) adopt guidelines for public school construction; and
41          (ii) consult with the Division of Facilities Construction and Management
42     Administration on proposed guidelines before adoption.
43          (b) The state board shall ensure that guidelines adopted under Subsection (2)(a)(i)
44     maximize funds used for public school construction and reflect efficient and economic use of
45     those funds, including adopting guidelines that address a school's essential needs rather than
46     encouraging or endorsing excessive costs per square foot of construction or nonessential
47     facilities, design, or furnishings.
48          (3) Before a school district or charter school may begin public school construction, the
49     school district or charter school shall:
50          (a) review the guidelines adopted by the state board under this section; and
51          (b) take into consideration the guidelines when planning the public school
52     construction.
53          (4) In adopting the guidelines for public school construction, the state board shall
54     consider the following and adopt alternative guidelines as needed:
55          (a) location factors, including whether the school is in a rural or urban setting, and
56     climate factors;
57          (b) variations in guidelines for significant or minimal projected student population
58     growth;

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

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

121          (4) (a) The check or bond required under Subsection (2)(b) shall be drawn in favor of
122     the local school board.
123          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
124     additional bonds required under this section, then the bidder's check or bond is forfeited to the
125     district.
126          (5) A local school board shall require payment and performance bonds of the
127     successful bidder as required in Section 63G-6a-1103.
128          (6) (a) A local school board may require in the proposed contract that up to 5% of the
129     contract price be withheld until the project is completed and accepted by the local school
130     board.
131          (b) If money is withheld[,]:
132          (i) the local school board shall place [it] the withheld money in an interest bearing
133     account[,]; and
134          (ii) the interest accrues for the benefit of the contractor and subcontractors.
135          (c) [This] The money described in Subsection (6)(b) shall be paid upon completion of
136     the project and acceptance by the local school board.
137          (7) (a) [A] Except as provided in Subsection (7)(b), a local school board may not [bid]
138     use the local school board's resources on projects within the district if the total accumulative
139     estimated cost exceeds [$80,000] the cost threshold.
140          (b) The local school board may use [its] the local school board's resources if no
141     satisfactory bids are received under this section.
142          (8) [If the] Subject to Subsection (9), if a local school board determines in accordance
143     with Section 63G-6a-1302 to use a construction manager/general contractor as [its] the local
144     school board's method of construction contracting management on projects where the total
145     estimated accumulative cost exceeds [$80,000, it] the cost threshold, the local school board
146     shall select the construction manager/general contractor in accordance with the requirements of
147     Title 63G, Chapter 6a, Utah Procurement Code.
148          (9) (a) If a local school board receives fewer than three proposals for an architect or
149     fewer than three bids for a general contractor for a school building project, the local school
150     board may reissue the advertisement in accordance with Subsections (2)(b) and (c).
151          (b) If, after advertising a second time in accordance with Subsection (9)(a), no

152     satisfactory bid is received or fewer than three bids are received, the local school board may:
153          (i) if no satisfactory bid is received, proceed under the local school board's own
154     direction with the project; or
155          (ii) if fewer than three bids are received, select one of the received bids.
156          [(9)] (10) A local school board member may not have a direct or indirect financial
157     interest in the construction project contract.
158          Section 3. Section 53E-3-707 is amended to read:
159          53E-3-707. School building construction and inspection manual -- Annual
160     construction and inspection conference -- Verification of school construction inspections.
161          (1) As used in this section, "local education agency" or "LEA" means:
162          (a) a school district; or
163          (b) a charter school.
164          [(1)] (2) (a) The state board, through the state superintendent, shall develop and
165     distribute to each school district a school building construction and inspection resource manual.
166          (b) The manual shall be provided to a charter school upon request of the charter school.
167          [(2)] (3) (a) The manual shall include:
168          (i) current legal requirements; and
169          (ii) information on school building construction and inspections, including the
170     guidelines adopted by the state board in accordance with Section 53E-3-702.
171          (b) The state superintendent shall review and update the manual at least once every
172     three years.
173          [(3)] (4) The state board shall provide for an annual school construction conference to
174     allow a representative from each [school district and charter school] LEA to:
175          (a) receive current information on the design, construction, and inspection of school
176     buildings;
177          (b) receive training on such matters as:
178          (i) using properly certified building inspectors;
179          (ii) filing construction inspection summary reports and the final inspection certification
180     with the local governmental authority's building official;
181          (iii) the roles and relationships between [a school district or charter school] an LEA
182     and the local governmental authority, either a county or municipality, as related to the

183     construction and inspection of school buildings; and
184          (iv) adequate documentation of school building inspections; and
185          (c) provide input on any changes that may be needed to improve the existing school
186     building inspection program.
187          [(4)] (5) The state board shall develop a process to verify that inspections by qualified
188     inspectors occur in each [school district or charter school] LEA.
189          (6) An LEA shall:
190          (a) appoint a person to have direct administrative and operational control of all
191     construction, renovation, and inspection of public school facilities within the LEA; and
192          (b) ensure that the person appointed under Subsection (6)(a) has:
193          (i) knowledge of building construction and repair, safety precautions, building trades,
194     contracting procedures, and laws pertaining to construction; and
195          (ii) the ability to oversee building construction projects, read and interpret blueprints,
196     maintain standards of quality, and evaluate construction or design problems and suggest
197     solutions.
198          (7) To fulfill the requirements described in Subsection (6), an LEA may:
199          (a) appoint an employee of the LEA; or
200          (b) in accordance with Title 63G, Chapter 6a, Utah Procurement Code, contract with a
201     person who is not an employee of the LEA.
202          Section 4. Section 53E-3-708 is amended to read:
203          53E-3-708. Licensed architect to prepare plans.
204          (1) As used in this section:
205          (a) "Cost threshold" means the same as that term is defined in Section 53E-3-703.
206          (b) "Design build" means the same as that term is defined in Section 63G-6-103.
207          (2) A licensed architect shall prepare the plans and specifications for the construction
208     or alteration of school buildings.
209          (3) (a) Except as provided in Subsection (3)(b), a local school board:
210          (i) shall procure architecture services for a school construction project separately from
211     procuring general contracting or other construction services; and
212          (ii) may not issue a design build contract for a school construction project.
213          (b) Notwithstanding Subsection (3)(a), a local school board may issue a design build

214     contract for a construction project if the total estimated accumulative building project cost
215     exceeds the cost threshold if the local school board:
216          (i) solicits separate advertisements for architecture services and construction; and
217          (ii) compares the fiscal impact difference between the design build contract and
218     procuring separate contracts for architecture and construction services.
219          (4) (a) Notwithstanding Section 53E-3-703, a local school board may procure
220     architecture services without advertising for bids or receiving a certain number of bids if the
221     local school board procures the architecture services:
222          (i) to adjust a pre-existing design that any local school board has used for a previous
223     construction project; and
224          (ii) from the architect who provided the architecture services for the previous
225     construction project described in Subsection (4)(a)(i).
226          (b) Local school boards shall make efforts to collaborate and share in facility
227     construction and designs, emphasizing:
228          (i) the safety and instruction of students; and
229          (ii) fiscal responsibility regarding tax revenues.