05-329 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.
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`.‘ City of Elgin Agenda Item No.
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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