A. Definitions: For purposes of this section the following definitions shall apply:
APPRENTICE: An apprentice enrolled in a certified apprenticeship training program, as recognized by the Department of Workforce Services of the State of Utah.
BID LIMIT: Has the same meaning as in section 3.10.030 of this chapter.
BUILDING IMPROVEMENT: The construction or repair of a public building or structure.
CERTIFIED APPRENTICE TRAINING PROGRAM: An apprenticeship training program approved by the U.S. 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 on average at least thirty (30) hours per week of 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.
DRUG AND ALCOHOL TESTING POLICY: A policy under which a contractor or subcontractor tests a covered individual to establish, maintain, or enforce a 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.
HEATH BENEFIT PLAN: An insurance policy that provides healthcare coverage, including major medical expenses, or 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 a supplement health insurance.
LABOR HOURS: The total hours of workers receiving an hourly wage who are directly employed on the site of a building improvement or public works project. "Labor hours" includes hours performed by workers employed by the contractor and all subcontractors working on the project. "Labor hours" does not include hours worked by foremen, superintendents, project managers, project engineers, and owners.
LOWEST RESPONSIVE RESPONSIBLE BIDDER: Has the same meaning as in section 3.10.030 of this chapter.
PUBLIC WORKS PROJECT:
1. The construction of:
a. A park, recreational, power or other City facility; or
b. A pipeline, culvert, dam, canal, or other system for water, sewage, stormwater, flood control, power or other City infrastructure.
2. Public works project does not mean:
a. The replacement or repair of existing infrastructure on private property; or
b. Supply contracts.
QUALIFIED HEALTH 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 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 at least fifty percent (50%) of the premiums for the employee and the dependents of the employee who reside or work in the State under which:
a. The employer pays at least fifty percent (50%) of the premium for the employee and the dependents of the employee; and
b. For purposes of calculating actuarial equivalency under this provision, rather than benchmark plan deductibles and the benchmark plan out of pocket maximum based on income levels:
(1) The annual deductible is maximum one thousand dollars ($1,000.00) per individual and three thousand dollars ($3,000.00) per family; and
(2) The annual out of pocket maximum is three thousand dollars ($3,000.00) per individual and nine thousand dollars ($9,000.00) per family; or
2. A federally qualified, high deductible health plan (not including dental coverage) that at a minimum has a deductible which is either:
a. The lowest deductible permitted for a federally qualified, high deductible plan; or
b. A deductible that is higher than the lowest deductible permitted for a federally qualified, high deductible 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; and
(1) Has an out of pocket maximum that does not exceed three (3) times the amount of the annual deductible; and
(2) 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.
QUALIFYING PROJECTS: Contracts issued by the City on or after February 18, 2020 for all City owned building improvements or public works projects estimated to exceed three million dollars ($3,000,000.00).
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 contractor or another subcontractor to provide services or labor for the construction of 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.
TRADE: Means electricians, bricklayers, ironworkers, operating engineers, plumbers, pipefitters, welders, HVAC&R technicians, operative cement masons, painters, drywallers, laborers, heat and frost insulators, sheet metal workers, sprinkler fitters, and roofers.
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
3. Any individual incurring an actual service related injury or disability in the line of duty, whether or not the person completed one hundred eighty (180) consecutive days of active duty.
B. Cost Estimate Required: The Purchasing Agent, or designee, shall require any City department intending to undertake a building improvement or public works project to prepare:
1. Plans and specifications for the building improvement or public works project; and
2. An estimate of the cost of the building improvement or public works project.
C. Method Of Construction Contracting Management: The requirements of subsection B of this section do not preclude the use of any method of construction contracting management outlined in section 3.10.360 of this chapter. Any method of construction contracting management may be used so long as the requirements of subsection B of this section are reasonably complied with.
D. When Bid Limit Exceeded: If the cost estimate required under subsection B of this section exceeds the bid limit specified in section 3.10.030 of this chapter, the Purchasing Agent, or designee, shall require the building improvement or public works project to be procured according to the requirements of Utah Code Annotated section 11-39-103, as amended and this chapter.
E. Determine Lowest Responsive Responsible Bidder: The Procurement Agent shall determine the lowest responsive responsible bidder by applying, in addition to the criteria in section 3.10.200 of this chapter, a preference system to determine whether the contractor and every subcontractor, if any, has demonstrated to the City's satisfaction that they have and will maintain:
1. An offer of qualified health insurance available to a contractor's and subcontractor's covered employees and the employees' dependents;
2. A drug and alcohol testing policy during the period of the contract that applies to all covered employees employed or hired by the contractor or any subcontractor and require covered employees to submit to random testing under the drug and alcohol testing policy;
3. A program to actively recruit and/or employ veterans;
4. A job training program, such as, by way of example and not limitation, a Federal, State, and/or City recognized job training program;
5. Apprentice Utilization: For qualifying projects, a contractor who commits to ensure that not less than ten percent (10%) of the total labor hours are worked by apprentices as defined herein, shall have their bid considered as if it were two and a half percent (2.5%) lower than the actual dollar value of the bid, not to exceed a preferential value of seventy five thousand dollars ($75,000.00). The contractor awarded a contract based in part on this preference, after consideration of all other applicable preferences under this section, shall be awarded the contract at the actual dollar value of the bid. Contractors awarded contracts based in part on this preference shall:
a. Use their best efforts to comply with the apprentice utilization preference provisions of this section;
b. Submit to the City Purchasing Agent within fifteen (15) days after completion of the work a statement describing compliance with this subsection. The statement shall include the number of apprentices and the labor hours worked by them as well as the number, type and rationale for the exceptions granted under subsection F;
c. Determine how the apprentice utilization will be achieved and is responsible for attaining the ten percent (10%). The City does not require that the prime contractor's forces alone achieve ten percent (10%) apprentice utilization; however, in order to meet the requirement, the prime contractor should subcontract with companies that plan to provide apprentice hours sufficient to meet the requirement for the project overall;
d. Include as part of the contract or subcontract a provision requiring compliance with this subsection E, absent any exceptions for good cause defined in subsection F below. A failure to comply with this subsection may be deemed a breach of contract for which the City is entitled to all remedies allowed by law and under the contract; and
e. If contractor fails to file the report required in subsection E5b, or fails to meet the total labor hours requirement for apprentices specified herein, unless good cause is shown and exceptions granted as provided in subsection F, then contractor shall forfeit one percent (1%) of the total project cost to the City, which amount shall be credited to the account from which the project was funded.
6. A safety program; and
7. A formal policy of nondiscrimination as required by Federal, State, and local law.
F. Apprentice Utilization Exceptions:
1. The requirements under the apprentice utilization preference described in subsection E5 may be excused or waived if:
a. The apprenticeship requirement conflicts with state or federal funding conditions, or the conditions of any other grant or funding program;
b. The contractor has demonstrated that it has utilized its "best efforts" to meet the established percentage requirement, but remains unable to fulfill it;
c. A disproportionately high ratio of material costs to labor hours, which does not make feasible the required minimum levels of apprentice participation; or
d. A demonstrated lack of availability of apprentices in the specific geographic area.
2. The apprentice utilization preference shall not apply to:
a. Contracts sought for emergency repair or noncompetitive situations; or
b. A change order or modification to a project, when the estimate did not meet the initial dollar threshold of a qualified project.
3. In the event a contractor seeks an exception under subsection F1:
a. The contractor shall demonstrate to the satisfaction of the purchasing agent that the contractor is using as many apprentice hours as practicable; and
b. Shall provide a plan to the purchasing agent demonstrating the highest percentage of apprentice hours that are practicable and that will be attained by contractor.
G. Applying Preference System: The City's Procurement Official shall apply the preference system under subsection E of this section by making an award to the responsive and responsible bidder that qualifies for the most preferences, if the qualifying bidder's bid is equal to or less than one hundred four percent (104%) of the lowest responsive and responsible bid or within fifty thousand dollars ($50,000.00), whichever value is less. If multiple vendors qualify for the same number of preferences, the award shall be made to the lowest responsive and responsible bid among them.
(Ord. 20-06: Ord. 19-45 § 2: Ord. 17-14)