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HomeMy WebLinkAboutG53-91 (2) Ordinance No. G53-91 AN ORDINANCE AMENDING THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED, BY ADDING CHAPTER 2.88 TO PROVIDE FOR A CODE OF STANDARDS FOR MUNICIPAL CONTRACTS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That the Elgin Municipal Code, 1976 as amended, be and is further amended by adding Chapter 2 .88 entitled "Pecuniary Interests in Contracts" as follows : Chapter 2 .88 Pecuniary Interests in Contracts 2. 88. 010 Prohibition. No municipal officer or employee shall be interested, directly or indirectly, in his own name or in the name of any other person, association, trust or corporation, in any contract, work or business of the municipality, or in the sale of any article, whenever the expense, price or consideration of the contract, work, business or sale is paid either from the treasury or by any assessment levied by any statute or ordinance. No municipal officer or an employee shall be interested, directly or indirectly, in the purchase of any property which ( 1) belongs to the municipality, or (2) is sold for taxes or assessments, or (3) is sold by virtue of legal process at the suit of the municipality. 2.88.020 Exemption relating to percentage of owner- ship interest. Any elected or appointed member of the governing body or employee may provide materials, merchandise, property, services or labor, if: A. the contract is with a person, firm, partnership, association, corporation or cooperative association in which such interested member of the governing body or employee of the municipality has less than a 71% share in the ownership; and B. such interested member or employee publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and C. the interested member abstains from voting on the award of the contract, through he shall be considered present for the purposes of establishing a quorum; and D. such contract is approved by a majority vote of those members presently holding office; and E. the contract is awarded after sealed bids to the lowest responsible bidder if the amount of the contract exceeds $1,500, but the contract may be awarded without bidding if the amount is less than $1,500; and F. the award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $25,000. 2 .88.030 Exemption relating to monetary amount of contract. In addition to the above exemption, any elected or appointed member of the governing body or employee may provide materials, merchandise, property, services or labor if: A. the award of the contract is approved by a majority vote of the governing body of the municipality provided that such interested member shall abstain from voting; and B. the amount of the contract does not exceed $2, 000; and C. the award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $4,000; and D. such interested member or employee publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and E. the interested member or employee publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract. 2 .88.040 Exemption relating to interests in public utility companies . A contract for procurement of public utility services by a municipality with a public utility company is not barred by this Section by one or more members of the governing body or an employee being an officer or employee of the public utility company or holding an ownership interest of no more than 71% in the public utility company. An elected or appointed member of the governing body or an employee having such an interest shall be deemed not to have a prohibited interest under this Section. 2 .88.050 Exemptions relating to interests in financial services . Nothing contained in this Section, including the restrictions set forth in subsections (b) , (c) and (d) , shall preclude a contract of deposit of monies, loans or other financial services by a municipality with a local bank or local savings and loan association, regardless of whether a member or members of the governing body of the municipality are interested in such bank or savings and loan association as an officer or employee or as a holder of less than 7}% of the total ownership interest. A member or members holding such an interest in such a contract shall not be deemed to be holding a prohibited interest for purposes of this Act. Such interested member or members of the governing body must publicly state the nature and extent of their interest during deliberations concerning the proposed award of such a contract, but shall not participate in any further deliberations concerning the proposed award. Such interested member or members shall not vote on such a proposed award. Any member or members abstaining from participation in deliberations and voting under this Section may be considered present for purposes of establishing a quorum. Award of such a contract shall require approval by a majority vote of those members presently holding office. Consideration and award of such contract in which a member or members are interested may only be made at a regularly scheduled public meeting of the governing body of the municipality. Section 2 . That all ordinances or parts thereof in conflict with this ordinance are repealed. . Section 3. That this ordinance shall be in full force and effect from and after ten days after its passage and publication in the manner provided by law. sl George VanDeVoorde George VanDeVoorde, Mayor Presented: August 14, 1991 Adopted: August 14, 1991 Omnibus Vote: Yeas 6 Nays 0 Recorded: Published: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk • �n _ �� °�=�y Agenda Item No. coooAgEEttl July 16, 1991 MEMORANDUM TO: Mayor and Members of City Council FROM: City Manager SUBJECT: Code of Standards for Municipal Contracts PURPOSE: The purpose of this memorandum is to amend the Elgin Municipal Code by adding a new chapter to provide for a Code of Standards for Municipal Contracts. BACKGROUND: During the 1990 Audit of our Community Develop- (ow ment Block Grant Funds by the U. S. Department of Housing and Urban Development (HUD) , an issue arose regarding the fact that the City does not have a "written" code of standards for munici- pal contracts . City Staff has maintained that the State of Illinois statutes govern municipal contracts as well and a separate written code of standards for the Elgin Municipal Code is not really neces- sary; however, HUD has requested that we oblige them in this matter in order to assure strict compliance with their Common Rule, which requires a "written code of standards of conduct governing the performance of employees engaged in the award and administration of contracts" . Enclosed for your consideration is a proposed ordinance devel- oped by our Legal Department, which is patterned after the Illi- nois Revised Statutes, as well as the March 2nd and June 5th letters from HUD regarding this matter. FINANCIAL IMPACT: None. RECOMMENDATION: The recommendation is to formally adopt this proposed ordinance providing for a written Code of Standards for Municipal Contracts at your August 14th regular Council meeting. r City nage 4) July 1, 1991 MEMORANDUM TO: Michael A. Sarro, Purchasing Director FROM: Barbara Oklesen, Assistant Corporation Counsel SUBJECT: Your Request of June 25, 1991 If I understand the correspondence correctly, the City could adopt an ordinance which would be exactly like Ch. 24, §3-14-4 (see attached) . However, since the requirement in the correspondence relates to the activities of employees, the section should be amended in that the term "employee" should be added to those persons to whom the statute applies, i.e. paragraph (a) would be amended to state as follows: "No municipal officer or employee shall be interested, I would also recommend deleting paragraph (e) . This pertains 47) to criminal charges which would be brought by the States Attorneys office for a violation of the state statute. Since we are amending this to include employees, as well as municipal employees, the sentencing provisions would not apply to our ordinance as proposed. Please find a proposed ordinance which amends the above discussed state statute. \.15 BO bdm Attachment cc: Michael Gehrman Approved: 7 Co , .. ation Counsel e"'' DRAFT #1 PROCUR 7/1/91 Ordinance No. G91- AN ORDINANCE AMENDING THE ELGIN MUNICIPAL CODE, 1976 AS AMENDED BY ADDING CHAPTER TO PROVIDE FOR A CODE OF STANDARDS FOR MUNICIPAL CONTRACTS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That the Elgin Municipal Code, 1976 as amended, be and is further amended by adding Chapter entitled "Pecuniary Interests in Contracts" as follows: Pecuniary interests in contracts - Prohibition (a) No municipal officer or employee shall be interested, directly or indirectly, in his own name or in the name of any other person, association, trust or corporation, in any contract, work or business of the municipality, or in the sale of any article, whenever the expense, price or eft consideration of the contract, work, business or sale is paid either from the treasury or by any assessment levied by any statute or ordinance. No municipal officer or an employee shall be interested, directly or indirectly, in the purchase of any property which ( 1) belongs to the municipality, or (2) is sold for taxes or assessments, or (3) is sold by virtue of legal process at the suit of the municipality. (b) However, any elected or appointed member of the governing body or employee may provide materials, merchandise, property, services or labor, if: A. the contract is with a person, firm, partnership, association, corporation or cooperative association in which such interested member of the governing body or employee of the municipality has less than a 71% share in the ownership; and B. such interested member or employee publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and C. the interested member abstains from voting on the award of the contract, through he shall be considered present for the purposes of establishing a quorum; and D. such contract is approved by a majority vote of those members presently holding office; and E. the contract is awarded after sealed bids to the 44) lowest responsible bidder if the amount of the contract exceeds $1,500, but the contract may be awarded without bidding if the amount is less than $1,500; and F. the award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association, partnership, corporation, or cooperative association in the same fiscal year to exceed $25,000. (c) In addition to the above exemption, any elected or appointed member of the governing body or employee may provide materials, merchandise, property, services or labor if: A. the award of the contract is approved by a majority vote of the governing body of the municipality provided that such interested member shall abstain from voting; and B. the amount of the contract does not exceed $2,000; and C. the award of the contract would not cause the aggregate amount of all such contracts so awarded to the same person, firm, association, partnership, corporation, or 47) cooperative association in the same fiscal year to exceed $4,000; and D. such interested member or employee publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and E. the interested member or employee publicly discloses the nature and extent of his interest prior to or during deliberations concerning the proposed award of the contract; and (d) A contract for procurement of public utility services by a municipality with a public utility company is not barred by this Section by one or more members of the governing body or an employee being an officer or employee of the public utility company or holding an ownership interest of no more than 7i% in the public utility company. An elected or appointed member of the governing body or an employee having such an interest shall be deemed not to have a prohibited interest under this Section. (e) Nothing contained in this Section, including the restrictions set forth in subsections (b) , (c) and (d) , shall47) preclude a contract of deposit of monies, loans or other financial services by a municipality with a local bank or local savings and loan association, regardless of whether a ep. member or members of the governing body of the municipality are interested in such bank or savings and loan association as an officer or employee or as a holder of less than 71% of the total ownership interest. A member or members holding such an interest in such a contract shall not be deemed to be holding a prohibited interest for purposes of this Act. Such interested member or members of the governing body must publicly state the nature and extent of their interest during deliberations concerning the proposed award of such a contract, but shall not participate in any further deliberations concerning the proposed award. Such interested member or members shall not vote on such a proposed award. Any member or members abstaining from participation in deliberations and voting under this Section may be considered present for purposes of establishing a quorum. Award of such a contract shall require approval by a majority vote of those members presently holding office. Consideration and award of such contract in which a member or members are interested may only be made at a regularly scheduled public meeting of the governing body of the municipality. Section 2 . That all ordinances or parts thereof in conflict with this ordinance are repealed. Section 3. That this ordinance shall be in full force /A► and effect from and after ten days after its passage and publication in the manner provided by law. George VanDeVoorde, Mayor Presented: Passed: Vote: Recorded: Published: Attest: Dolonna Mecum, City Clerk r 1213 CITIES AND VILLAGES 24 1i 3-14-5 Municipal Code 1961 Mun. Code 1 3-14-S corporate authorities. The bond shall be payable to the A. the award of the contract is approved by a majority municipality in whatever penal sum may be directed by vote of the governing body of the municipality provided resolution or ordinance, conditioned upon the faithful per- that i such interested member shall abstain from vot- formance of the duties of the office and the payment of all ing; and money received by such officer,according to law and also B. the amount of the contract does not exceed $2000; the ordinances of that municipality. Such bond may pro- and vide that the obligation of the sureties shall not extend to C. the award of the contract would not cause the any loss sustained by the insolvency,.failure,or closing of aggregate amount of all such contracts so awarded to the any bank or savings and loan association organized and same person,firm,association,partnership,corporation,or operating either under the laws of the State of Illinois or cooperative association in the same fiscal year to exceed the United States wherein such officer has placed funds in $4000; and6- • his custody, if the bank or savings and loan association D. such interested member ublicly discloses the na- _ has been approved by the corporate authorities as a depos- ture and extent of his interest prior to or during delibera- • itory for these funds. In no case, however, shall the tions concerningthe proposed :- mayor's bond be fixed at less than$3,000. The treasurer's �L award of the contract and bond shall be an amount of money that is not less than E' '.,,:"interested member abstains from voting on the three times the latest Federal census population or any award of the contract, though he shall be considered subsequent census figure used for. Motor Fuel Tax pur present for the purposes of establishing a quorum. • poses. These bonds shall be filed with the municipal clerk, (d) A contract for the procurement of public utility t except the bond of the clerk,which shall be filed with the services by a municipality with a public utility company is i municipal treasurer. ,1 .of • • b this Section by one or more members of the x1,11 0. governing being an officer or employee of the i ale"!by P A. 83-541, () 16,eff.Sept 17, 1983. , aur.-&utility company or holding an ownership interes - o ' more than 71/2%in the public utility companyr. U 4-4. Pecuniary interests In eon Rem-Prohibition a ' ¢ 3-14-4. (a) No municipal officer hall be interested, . :,. • '. . r., ,.0' ,. the . . ' , . •_ •directly or indirectly, in his own name or in the name of gppr+ov . , .". - .. Co '',L•. on. An - e any other person,association, trust or corporation,in any elected or appointed member of the governing body h�a�vi''ig X47 contract, work or business of the municipality, or in the such an interest shall be deemed not to have a prohibited t sale of any article,whenever the expense,price or consid- interest under this Section. . ' eration of the contract, work, business or sale is paid e) Any • icer wh• 1 i o. is : 5 of a either from the treasury or by any assessment 0d by Ne, - felt 9� !d • any statute or ordinance. No municipal officer hall be 1'!} r►�` jt.MRan. .. interested. directly or indirectly, in the purchase of any !�.,.,'has part o • judgment court. Property which (1) belongs to the municipality, or (2) is ,e 0 Nothing contained in this Section, including the re- sold for taxes or assessments, or(3) is sold by virtue of L. strictions set forth in subsections (b), (c) and (d), shall legal process at the suit of the municipality. preclude a contract of deposit of monies, loans or other .1_6 (b) However, any elected or appointed member of the financial services by a municipality with a local bank or ��Y may provide materials,merchandise,prof• local savings and loan association,regardless of whether a erty,services or labor, if: member or members of the governing body of the munici- A. the contract is with a person, firm, partnership, pality are interested'in such bank or savings and loan association,co ration or cooperative association in which association as an officer or employee or as a holder of less such interested member of the governing bod t of •...e than 7'h%of the total ownership interest. A member or municipality has less than a 71/2%share in the . .•c••,£ members holding such an interest in such a contract shall and �� not be deemed to be holding a prohibited interest for B. such interested rpember/publ' y discloses the nes- p of this Act Such interested member or mem- tire and extent of his interest prior to or during deh'bera- bases governing body must publicly state the nature tions �� the proposed award of the contract; and and extent of their interest during deliberations concern- C. Ii i interested member abstains from voting on the pro ed award of such a contract, but shall not award of the contract, though he shall be considered participate in any further deliberations concerning the - present for the purposes of establishing a quorum; and proposed award- Such interested member or members f D. such contract is approved by a majority vote of shall not vote on such a proposed award. Any member or those members presently holding office; and and IIvoting under tbers his Section may from mabe considered presetion in nt E. the contract is awarded after sealed bids to the for purposes of establishing a quorum. Award of such a lowest responsible bidder if the amount of the contract contract shall require approval by a majority vote of those exceeds$1500,but the contract may be awarded without members presently holding office. Consideration and bidding if the amount is less than$1500; and award of any such contract in which a member or mem- F. the award of the contract would not cause the berg are interested may only be made at a regularly aggregate amount of all such contracts so awarded to the scheduled public meeting of the governing body of.the same person,firm,association,partnership,corporation,or municipality. cooperative association in the same fiscal year to exceed Amended by P.A.86-757, 1 1,eff.Jan. 1, 1990. 7 $25,000. -� --_ - .. (c) In addition to the above exemption, an)eelected or 3-14-5. Misconduct of municipal officers—Penalty appointed member of the governing body provide 1 3-14-5. Every municipal officer who is guilty of a materials,merchandise,property,services or labor if: palpable omission of duty,or who is guilty of willful and ��•'�. U.S.Department of Housing and Urban Development .�, Chicago Area Office. Region V • iJ� I' • 547 West Jackson Boulevard ��•'` '�� Chicago. Illinois 60606-5760 r JUN 5 1991 Larry L. Rice, City Manager ity of Elgin ATTENTION : Patricia Andrews City Hall 150 Dexter Court Elgin, Illinois 60120 Dear Mr . Rice : SUBJECT: Monitoring Finding Code of Standards B-89-MC-17-0011 - • In a monitoring letter dated March 21 , 1991, a finding was made in the area of Financial Management. It concerns compliance with Part 85.36 of the Common Rule. At the time Elgin did not have a "written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts , " in accordance with 85 .36 (b) (3) . At the monitoring, Mr. Caliendo met with Mr. Mike Sarro, Purchasing Agent and he assured him that the City would have a written code of standards which will reference the Illinois Code of Standards eft governing the performance of employees engaged in administrative contracts. Mr. Caliendo said this would be acceptable and to date we have not received this documentation. We ask that you provide our office with the requested information so that we may close this finding. If you have any questions regarding this matter, please contact Frank Caliendo 'at 312/886-0103 . Sincer , Richard H. Wilson Regional Director Community Planning and Development .•`'I °'�,� U.S.Department of Housing and Urban Development * o Chicago Area Office. Region V Ettzs 547 West Jackson Boulevard °• '' Chicago. Illinois 60606-5760 + '«.i,o 414) MAR 2 1 1991 Er. Larry L. Rice, City Manager City of Elgin ATTENTION: Patricia Andrews City Ball 150 Dexter Street Elgin, Illinois 60120 Dear Mr. Rice : SUBJECT: Community Development Block Grant Monitoring 8-89/90-MC-17-0011 Elgin , Illinois This refers to the results of our monitoring on February 5 , 1991 . Mr. Frank Caliendo, Community Development Representative and Rose Smith, Financial Analyst of the Chicago BUD office met with Ms . Pat Andrews and other members of your Community Development staff . Monitoring was directed to the area of Program Benefit and Eligibility relating to Rousing Rehabilitation and Financial Management. There was one finding that you will have to address. . Amik The following is a summary of issues raised during the visit. Rousing Rehabilitation (Eligibility and Program Benefit) . The Block Grant funds expended on rehabilitation are in the form of a housing rehabilitation rebate program. The purpose of the program is to bring houses up to local code. This is accomplished through a rebate program where the lowest income household can receive up to $6 ,500 in rebate toward housing rehabilitation. Our monitoring, which included site inspections , focused on program management, benefit and eligibility. A review of the files showed that Elgin rehabs between 40 and 50 houses per year. This number includes whole house rehabilitations as well as code violations only. A visit to a number of sites revealed that the workmanship and construction techniques employed were in keeping with standards as set by the industry. • -2- Mr. Caliendo reviewed the following case files and there were no findings: Address Family Size Income 333 Coleman 1 $ 5 ,741/yr. 260 South Aldine 3 21 , 352/yr. 658 North Porter 3 22 ,897/yr. 325 Fulton Street 3 58 ,163/yr. * 358 Center Street 2 11 ,731/yr. 641 Eastview 2 16 ,621/yr. 418 Orchard Street 2 7 ,479/yr. *This property was rehabbed in accordance with Section 570.208 (b) of the Federal Regulations, activities which aid in the prevention or elimination of slums or blight. In this case the recipient received a maximum of a 10% rebate because of income. A site visit and documentation in the file verified that this was elimination of slums or blight on a spot basis . eft. Financial management In the last monitoring visit our representative met with Martin Gregory to review the financial management system for compliance with Part 85 .36 of the Common Rule. At that time Elgin did not have 'a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts, ' in accordance with 85.36 (b) (3 ) . At this monitoring, Mr. Caliendo met with Mr. Mike Sarro, Purchasing Agent and he assured him that the City will have a written code of standards which will reference the Illinois Code of Standards governing the performance of employees engaged in administrative contracts. This will be acceptable to us and we ask that you have your City Council act upon this . Since this was a finding from the last monitoring, it will remain open until . we receive documentation that your City Council has adopted this code of standards . The purpose of our financial review of your system, at this monitoring, was to determine if your financial activities within that system met EUD' s requirements on compliance with 24 CFR, Part 85 , grant administration. r -3- 4, As in previous reviews , we found that your financial system is adequate in generation of reports, which are accurate, current and representative of an adequate disclosure of financial .results of the grant program. There were records that generally identified both the source and application of funds, which 11 demonstrates an accountability of grant funds . We were able to determine that program income on hand was disbursed per HUD requirements, prior to drawing down from the U .S . Treasury. In reviewing the Community Development Grant Cash Control Ledger we were able to determine that each drawdown was supported with adequate reference to the source documentation. Overall , we feel that Elgin does comply with HUD' s requirements and the requirements of 24 CFR Part 85 . I want to thank you for the courtesy extended to my staff during their visit. Please respond to our finding within 30 days of the date of this letter. Should you have any questions please contact Frank Caliendo, Community Planning and Development Representative at 312/886-0103 . Sincer - y, 47)1 Richard H. Wilson Regional Director Community Planning and Development 4)