Utah Code 11-42-301. Improvements made only under contract let to lowest responsive, responsible bidder — Publishing notice — Sealed bids — Procedure — Exceptions to contract requirement
11-42-301. Improvements made only under contract let to lowest responsive, responsible bidder — Publishing notice — Sealed bids — Procedure — Exceptions to contract requirement.
(1)
Except as otherwise provided in this section, a local entity may make improvements in an assessment area only under contract let to the lowest responsive, responsible bidder for the kind of service, material, or form of construction that the local entity’s governing body determines in compliance with any applicable local entity ordinances.
Terms Used In Utah Code 11-42-301
Assessment area: means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under 2, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. See Utah Code 11-42-102
Contract: A legal written agreement that becomes binding when signed.
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
Governing body: means :
(a)
for a county, city, or town, the legislative body of the county, city, or town;
(b)
for a special district, the board of trustees of the special district;
(c)
for a special service district:
(i)
the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301; or
(ii)
the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301;
(d)
for the military installation development authority created in Section 63H-1-201, the board, as defined in Section 63H-1-102;
(e)
for the Utah Inland Port Authority, created in Section 11-58-201, the board, as defined in Section 11-58-102; and
(f)
for a public infrastructure district, the board of the public infrastructure district as defined in Section 17D-4-102. See Utah Code 11-42-102
Local entity: means :
(a)
a county, city, town, special service district, or special district;
(b)
an interlocal entity as defined in Section 11-13-103;
(c)
the military installation development authority, created in Section 63H-1-201;
Oversight: Committee review of the activities of a Federal agency or program.
Project engineer: means the surveyor or engineer employed by or the private consulting engineer engaged by a local entity to perform the necessary engineering services for and to supervise the construction or installation of the improvements. See Utah Code 11-42-102
Public agency: means :
(a)
the state or any agency, department, or division of the state; and
water, sewer, storm drainage, garbage collection, library, recreation, communications, or electric service;
(b)
economic promotion activities; or
(c)
any other service that a local entity is required or authorized to provide. See Utah Code 11-42-102
(2)
A local entity may:
(a)
divide improvements into parts;
(b)
(i)
let separate contracts for each part; or
(ii)
combine multiple parts into the same contract; and
(c)
let a contract on a unit basis.
(3)
(a)
A local entity may not let a contract until after providing notice as provided in Subsection (3)(b), as a class A notice under Section 63G-30-102, for at least 15 days before the date specified for receipt of bids.
(b)
Each notice under Subsection (3)(a) shall notify contractors that the local entity will receive sealed bids at a specified time and place for the construction of the improvements.
(c)
Notwithstanding a local entity’s failure, through inadvertence or oversight, to publish the notice or to publish the notice within 15 days before the date specified for receipt of bids, the governing body may proceed to let a contract for the improvements if the local entity receives at least three sealed and bona fide bids from contractors by the time specified for the receipt of bids.
(d)
A local entity may publish a notice required under this Subsection (3) at the same time as a notice under Section 11-42-202.
(4)
(a)
A local entity may accept as a sealed bid a bid that is:
(i)
manually sealed and submitted; or
(ii)
electronically sealed and submitted.
(b)
The governing body or project engineer shall, at the time specified in the notice under Subsection (3), open and examine the bids.
(c)
In open session, the governing body:
(i)
shall declare the bids; and
(ii)
may reject any or all bids if the governing body considers the rejection to be for the public good.
(d)
The local entity may award the contract to the lowest responsive, responsible bidder even if the price bid by that bidder exceeds the estimated costs as determined by the project engineer.
(e)
A local entity may in any case:
(i)
refuse to award a contract;
(ii)
obtain new bids after giving a new notice under Subsection (3);
(iii)
determine to abandon the assessment area; or
(iv)
not make some of the improvements proposed to be made.
(5)
A local entity is not required to let a contract as provided in this section for:
(a)
an improvement or part of an improvement the cost of which or the making of which is donated or contributed;
(b)
an improvement that consists of furnishing utility service or maintaining improvements;
(c)
labor, materials, or equipment supplied by the local entity;
(d)
the local entity’s acquisition of completed or partially completed improvements in an assessment area;
(e)
design, engineering, and inspection costs incurred with respect to the construction of improvements in an assessment area; or
(f)
additional work performed in accordance with the terms of a contract duly let to the lowest responsive, responsible bidder.
(6)
A local entity may itself furnish utility service and maintain improvements within an assessment area.
(7)
(a)
A local entity may acquire completed or partially completed improvements in an assessment area, but may not pay an amount for those improvements that exceeds their fair market value.
(b)
Upon the local entity’s payment for completed or partially completed improvements, title to the improvements shall be conveyed to the local entity or another public agency.
