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HomeMy WebLinkAbout05-329 Resolution No.05-329 RESOLUTION REQUIRING COMPLIANCE WITH THE PREVAH,ING WAGE ACT FOR CONSTRUCTION PROJECTS OF FIXED WORKS BY NONGOVERNMENTAL ORGANT7ATIONS THAT RECEIVE CITY OF ELGIN FUNDING WHEREAS, the Illinois Prevailing Wage Act is provided for at 820 ILCS 130/0.01 et seq.; and WHEREAS, the reasonable interpretation of the Prevailing Wage Act is that the Prevailing Wage Act is intended to apply to construction projects of fixed public works by nongovernmental organizations that receive significant public funding; and WHEREAS, the City Council of the City of Elgin has determined that it is necessary and desirable to adopt a policy to require compliance with the Prevailing Wage Act for construction projects of fixed public works by nongovernmental organizations that receive City of Elgin funding assistance of$75,000 or more. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That all agreements entered into by the City of Elgin regarding construction projects of fixed works by nongovernmental organizations that receive City of Elgin funding assistance of $75,000 or more shall include a requirement that the subject nongovernmental organization comply with the Prevailing Wage Act at 820 ILCS 130/0.1 et seq., as amended, including, but not limited to, paying the prevailing wage for the subject project. Section 2. This resolution shall be in full force and effect upon its adoption in the manner provided by law. s/ Ed Schock Ed Schock, Mayor Presented: December 7, 2005 Adopted: December 7, 2005 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk OF Et. _<( `.‘ City of Elgin Agenda Item No. • ,6* E L G 111 r,11'„I ii.11,1111 November 23, 2005 riL II N Piill IN di I FINANCIAL LY STABLE CITY GOVERNMENT EFFICIENT SERVICES ANDCLUALJT Y INFRASTRUCTURE TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager ( William A. Cogley, Corporation Counsel SUBJECT: Application of the Prevailing Wage Act to Construction Projects by Nongovernmental Organizations that Receive City of Elgin Funding PURPOSE The purpose of this memorandum is to submit to the Mayor and members of the City Council information regarding a proposed policy which would provide that construction projects of fixed works by nongovernmental organizations that receive City of Elgin funding assistance of $75,000 or more must comply with the Illinois Prevailing Wage Act. RECOMMENDATION It is recommended that the City Council adopt the proposed resolution which provides that all agreements entered into by the City of Elgin regarding construction projects of fixed works by nongovernmental organizations that receive City of Elgin funding assistance of$75,000 or more shall include a requirement that the subject nongovernmental organization comply with the Illinois Prevailing Wage Act. BACKGROUND The Illinois Prevailing Wage Act is provided for at 820 ILCS 130/0.01 et seq. Section 130/1 thereof provides that it is the policy of the State of Illinois that a wage of not less than the general prevailing hourly rate is paid for work of similar character in the locality in which the work is performed, shall be paid to all laborers, workers and mechanics employed by or on behalf of any and all public bodies engaged in public works. Section 13Q/2 of the Act provides for definitions including the definition of"public works" and "public body". The Prevailing Wage Act clearly and directly applies to public works projects performed directly by the City of Elgin and other municipalities. A more complicated issue which has arisen concerning the Prevailing Wage Act is the issue of whethelr the Prevailing Wage Act applies to construction projects undertaken by nongovernmental entities which receive public funding. An example of such a circumstance would be in the case of 4 city development agreement with a private developer whereby the city provides funds for the construction project. Application of the Prevailing Wage Act to Construction Projects by Nongovernmental Organizations that Receive Public Fundipg November 23, 2005 Page 2 The issue of whether the Prevailing Wage Act applies to cgmstruction projects undertaken by nongovernmental entities which receive public funds is presented due to the broad definition of a "public body" in the Prevailing Wage Act. The Prevailing Wage Act defines a "public body" to include "any political subdivision or any institution supported in whole or in part by public funds...". (emphasis added). The Corporation Counsel has previously provided informatioii to the Mayor and members of the City Council on this subject. As noted in such earlier comriunications, recent amendments to the Prevailing Wage Act have made it even more likely that the Prevailing Wage Act will apply to nongovernmental organizations that receive public funding., Based upon all of these circumstances it is recommended -hat the City Council consider the adoption of the policy whereby construction projects involving fixed works by nongovernmental organizations that receive city funding in excess of $75,000 shall include a requirement that prevailing wages be paid on the project. Attached is a draft tesolution which would provide for such policy. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None (111.‘01,C>EI'NANCIAL IMPACT None vi\WEGAL IMPACT The current provisions of the Prevailing Wage Act appear o suggest that the Illinois General Assembly intends that the Prevailing Wage Act apply to construction projects of fixed works by nongovernmental organizations that receive significant publics funding. The proposed resolution is consistent with such an interpretation of the Prevailing Wage Act. ALTERNATIVES 1. Adoption of the proposed policy as presented or in an amended form. 2. Do not adopt the proposed policy. Respectfully submitted for Council consideration. WAC/mg Attachment • Application of the Prevailing Wage Act to Construction Projects by Nongovernmental Organizations that Receive Public Fundiig November 23, 2005 Page 3 Draft 11-16-05 Resolution No. 05- RESOLUTION REQUIRING COMPLIANCE WITH THE PREVAILING WAGE ACT FOR CONSTRUCTION PROJECTS OF FIXED WORKS BY NONGOVERNMENTAL ORGANIZATIONS THAT RECEIVE CITY OF ELGIN FUNDING WHEREAS, the Illinois Prevailing Wage Act is provided for at 820 ILCS 130/0.01 et seq.; and WHEREAS, the reasonable interpretation of the Prevailing Wage Act is that the Prevailing Wage Act is intended to apply to construction projects of fixed public works by nongovernmental organizations that receive significant public funding; and WHEREAS, the City Council of the City of Elgin has determined that it is necessary and desirable to adopt a policy to require compliance with the Prevailing Wage Act for construction projects of fixed public works by nongovernmental organizations that receive City of Elgin funding assistance of$75,000 or more. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That all agreements entered into by the city of Elgin regarding construction projects of fixed works by nongovernmental organizations that receive City of Elgin funding assistance of $75,000 or more shall include a requirement', that the subject nongovernmental organization comply with the Prevailing Wage Act at 820 ILCS 130/0.1 et seq., as amended, including, but not limited to, paying the prevailing wage for the subject project. Section 2. This resolution shall be in full force and effect upon its adoption in the manner provided by law. Ed Schock, Mayor Presented: Adopted: Vote: Yeas Nays: Recorded: Attest: Dolonna Mecum, City Clerk F:\Legal Dept\Resolutions\Prevailing Wage Act.doc