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G10-95 �+ Ordinance No. G10-95 AN ORDINANCE PROVIDING FOR THE UNIFORM REGULATION OF PROCUREMENTS WHEREAS, the city council of the city of Elgin has determined that it is necessary and desirable to adopt an ordinance providing for the regulation and procedures for the entry into contracts for the procurement of supplies, services and construction and for the proposed acquisition of interests in real estate; and WHEREAS, the adoption of such a procurement ordinance will promote full and fair competition in public purchasing by the city of Elgin, will provide for the fair and equitable treatment of all persons involved in public purchasing by the city of Elgin, will maximize the purchasing value of public funds in procurement and will provide safeguards for maintaining a procurement system of quality and integrity; and WHEREAS, the city of Elgin is a home rule municipality as defined in Article VII , Section 6a of the 1970 Constitution of Illinois; and WHEREAS, a home rule unit may exercise any power and emk perform any function pertaining to its government and affairs; and WHEREAS, the adoption of an ordinance providing for the regulation and procedures for the entry into contracts for the procurement of supplies, services and construction and proposed acquisition of interests in real estate pertains to the government and affairs of the city of Elgin. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . That Title 2 entitled "Administration and Personnel" of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by adding Chapter 2 . 38 entitled "Department of Purchasing" to read as follows : "Chapter 2 . 38 DEPARTMENT OF PURCHASING 2 . 38 . 010 Created--Office of director created. A. There is hereby created an administrative department of the city which shall be known as the department of purchasing. This department shall consist of the director of the department of purchasing to be known as the purchasing agent and such other officers and employees as the city council shall from time to time authorize. B. There is created the office of director of the department of purchasing; the director shall be known and referred to as the purchasing agent and shall be appointed by the city manager. 2 . 38. 020 Purchasing agent--powers and duties. The purchasing agent shall be responsible for establishing purchasing procedures for the departments of the city which are consistent with the provisions of this ordinance. The purchasing agent shall have the following powers and duties : A. To purchase or contract for all supplies and contractual services needed by any city department in accordance with purchasing procedures as prescribed by the ordinances of the city. B. To act to procure for the city the highest quality in supplies and contractual services at the least expense to the city. (0". C. To prevent uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales . D. To open all sealed bids unless otherwise provided by law; be responsible for tabulating all bids or review bid tabulations prepared by the using department. E. To trade in, sell or dispose of such materials, supplies or equipment of the city as may become surplus, obsolete or unusable. F. To keep informed of current developments in the field of purchasing, prices, market conditions and new products, and secure for the city the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition, and by private businesses and organizations . G. To prescribe and maintain such forms as the purchasing agent shall find reasonably necessary to the operation of the purchasing department and the implementation of the purchasing procedures as prescribed by the ordinances of the city. 2 • tow- H. To prepare and adopt a standard purchasing nomenclature for use of departments, vendors and suppliers . I . To prepare, adopt and maintain a vendors ' and suppliers ' list and catalog file. J. To prepare, adopt and maintain a contract administration system designed to insure that contractors are performing in accordance with the terms and conditions of contracts which are awarded. Such a contract administration system shall include a reporting system for using departments so as to allow regular reports to the purchasing agent on contract performance. K. To preserve the integrity of the purchasing system. L. To assume such related duties as may be assigned from time to time by the city manager. " Section 2 . That the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by adding the following: "Title 5 PROCUREMENTS Chapter 5 . 02 GENERAL PROVISIONS 5 . 02 . 010 Purpose. The purpose of this ordinance is to provide for the fair and equitable treatment of all persons involved in public purchasing by the city of Elgin, to maximize the purchasing value of public funds in procurement, and to provide safeguards for maintaining a procurement system of quality and integrity. 5 . 02 . 020 Application and exclusions . A. Application. This ordinance applies to all contracts for the procurement of supplies, services, and construction, entered into by the city of Elgin after the effective date of this ordinance. It shall apply to every expenditure of public funds by the city for public purchasing irrespective of the source of the funds . When the 3 procurement involves the expenditure of state or federal assistance or contract funds, the procurement shall be conducted in accordance with any mandatory applicable state or federal law and regulations . Nothing in this ordinance shall prevent the city from complying with the terms and conditions of any grant, gift, or bequest that is otherwise consistent with law. B. Exclusions . This ordinance shall not apply to ( 1) any collective bargaining agreement or employment contracts to which the city is a party; (2) any purchase, sale or lease of real property to which the city is a party except as otherwise provided in Chapter 5 . 18 Leases for Designated City Facilities and except for the investigatory procedures provided in Chapter 5 . 22 Real Estate Acquisitions; ( 3) contracts with or purchases from another governmental entity; (4 ) purchases made pursuant to any joint purchasing program sponsored by the state or other governmental agencies; and (5) special assessments or other procurements controlled by statutory procedures . Chapter 5 . 04 DEFINITIONS 5 . 04 . 005 Definitions generally. Unless specifically defined below, the words or phrases in this ordinance shall be interpreted in accordance with the definitions contained in Webster' s Dictionary. 5 . 04 . 010 Architectural services . "Architectural Services" means any professional service as defined in Section 5 of the Illinois Architectural Practice Act of 1989 (225 IL/CS 305/5) as amended. 5 . 04 . 015 Business . "Business" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity. 5. 04 . 020 Change order. "Change Order" means a change in a contract term other than as specifically provided in the contract which authorizes or necessitates any 4 0 increase in the cost of the contract or the time to completion. 5 .04 . 025 Construction. "Construction" means the process of building, altering, repairing, improving, or demolishing any public structure or building, or other public improvements of any kind to any public real property. It does not include the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property. 5. 04 . 030 Contract. "Contract" means all types of city of Elgin agreements, regardless of what they may be called, for the procurement of supplies, services, or construction. 5 .04 . 035 Contractor. "Contractor" means any person having a contract with the city of Elgin or a using agency thereof . 5. 04 .040 Employee. "Employee" means an officer or other individual drawing a salary or wages from the city of Elgin, whether elected or not; any noncompensated individual performing personal services for the city of Elgin or any department, agency, commission, council, board, or any other entity established by the executive or legislative branch of the city of Elgin. 5 .05 . 045 Engineering services . "Engineering Services" means any professional service as defined in Section 4 of the Professional Engineering Practice Act of 1989 (225 IL/CS 325/4 ) as amended or Section 5 of the Structural Engineering Licensing Act of 1989 (225 IL/CS 340/5) as amended. 5 . 04 . 050 Invitation for bids . "Invitation for Bids" means all documents, whether attached or incorporated by reference, used for soliciting sealed bids . 5 e 5 . 04 . 055 Land surveying services . "Land surveying services" means any professional service as defined in Section 5 of the Illinois Professional Land Surveyor Act of 1989 (225 IL/CS 330/5) as amended. 5 . 04 . 060 Person. "Person" means any business, individual, union, committee, club, other organization, or group of individuals . 5 . 04 . 065 Procurement. "Procurement" means the buying, purchasing, renting, leasing, or otherwise acquiring of any supplies, services, or construction. It also includes all functions that pertain to the obtaining of any supply, service, or construction, including description of requirements, selection, and solicitation of sources, preparation and award of contract, and all phases of contract administration. 5 . 04 . 070 Request for proposals . "Request for Proposals" means all documents, whether attached or incorporated by reference, utilized for soliciting proposals . 5 . 04 . 075 Responsible bidder or offerer. "Responsible Bidder or Offerer" means a person who has the capability in all respects to perform fully the contract requirements, and the tenacity, perseverance, experience, integrity, reliability, capacity, facilities, equipment, and credit which will assure good faith performance. 5 . 04 . 080 Responsive bidder. "Responsive Bidder" means a person who has submitted a bid which conforms in all material respects to the requirements set forth in the invitation for bids . 5 . 04 . 085 Services . "Services" means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. This term shall not include employment agreements or collective bargaining agreements . 6 5 . 04 . 090 Specifications . "Specifications" means any description of the physical or functional characteristics or of the nature of a supply, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery. 5 . 04 . 095 Supplies . "Supplies" means all property, including but not limited to equipment, materials, printing, insurance, and leases of real property, excluding land or a permanent interest in land. 5 . 04 . 100 Using department. "Using department" means the city department requiring or utilizing the procurement of a particular supply, service or construction. Chapter 5 . 06 ENTRY INTO CONTRACTS, CHANGE ORDERS AND PAYMENT OF OBLIGATIONS 5 . 06 . 010 Entry into contracts . All contracts of the city of Elgin shall be authorized by the city council before award except as otherwise provided in Chapters 5 . 16 Small Purchases,5 . 18 Leases for Designated City Facilities and 5 .20 Emergency Procurements . No contract shall be made and no expense shall be incurred unless a budget appropriation or supplemental budget appropriation has previously been made for the subject matter of the contract or expense. 5 . 06 . 020 Change orders . All changes orders to city contracts shall be in writing and submitted to the city council for authorization. 5 . 06 . 030 Payment of obligations . All bills payable by the city other than for the payment of amounts less than $5,000 and salaries established by the city council shall be submitted to the city council for approval before payment. The city manager, or his duly authorized 7 representative, may approve for payment any bill in an amount less than $5,000 and salaries established by the city council . All payments which have not been approved by the city council shall be reported in writing monthly to the city council . Chapter 5 .08 SOURCE SELECTION--COMPETITIVE SEALED BIDDING 5. 08 . 010 Conditions for use. All contracts of the city of Elgin shall be awarded by competitive sealed bidding except as otherwise provided in Chapters 5 . 10 Competitive Sealed Proposals, 5 . 12 Contracting for Designated Professional Services, 5 . 14 Sole Source, 5. 16 Small Purchases, 5. 18 Leases for Designated City Facilities and 5.20 Emergency Procurements . 5 . 08 . 020 Invitation for bids . Invitation for bids shall be issued by the purchasing agent and shall include any and all contractual terms and conditions applicable to the procurement. Except as otherwise specifically authorized by the city council, no invitation for bids shall be issued unless a budget appropriation or supplemental budget appropriation has previously been made for the subject matter of the invitation for bids . 5 . 08 . 030 Prequalification of bidders . When the purchasing agent determines in writing that the use of a prequalification process to prequalify bidders is necessary and desirable to determine the responsibility of prospective bidders, the purchasing agent or the head of the using department may implement and utilize a prequalification process to prequalify bidders for a particular contract. The purchasing agent's written determination shall be presented to the City Council by the City Manager requesting permission to implement and utilize a prequalification process to prequalify bidders for a particular contract. 5 . 08 . 040 Public notice. Public notice of the invitation for bids shall (Pik be published at least ten ( 10) days in advance of the date announced for the receiving of bids, in a secular English language daily newspaper of general circulation throughout the city and shall 8 simultaneously be posted on readily accessible bulletin boards in the office of the purchasing agent. The purchasing agent may place additional announcements in recognized trade journals . The purchasing agent shall also solicit sealed bids from all responsible prospective suppliers who have requested their names to be added to the bidder' s list which the purchasing agent shall maintain, by sending them a copy of the notice. The purchasing agent may remove from the bidders list any potential bidders that the purchasing agent has determined to have become inactive bidders . The purchasing agent shall also advertise all pending purchases or sales by a notice posted on the public bulletin board in the city hall . Advertisements for bids shall describe the character of the proposed contract or agreement in sufficient detail to enable the bidders thereon to know what their obligations will be, either in the advertisement itself, or by reference to detailed plans and specifications on file at the time of the publication of the first announcement. Such advertisement shall also state the date, time and place assigned for the opening of bids, and no bids shall be received at any time subsequent to the time indicated in the announcement. The purchasing agent shall inform all parties who have received bid solicitations of any specification changes or bid opening extensions by sending written notice thereof via U.S. mail, and facsimile transmission if time constraints require, at the address and facsimile number which shall be required to be provided in the bids . Not less than two (2 ) days prior to the scheduled bid opening, an extension of time may be granted for the opening of such bids . The extension of time for the bid opening shall not be less than 5 days after notice thereof. 5 . 08 . 050 Bid bonds . Unless otherwise required by law, a cashier's check, a certified check, or a bid bond with adequate surety licensed in the State of Illinois and approved by the purchasing agent as a deposit of good faith, in an amount of 5% of the contract may be required of each bidder by the purchasing agent on all bids . Bid checks shall be returned to the unsuccessful bidders within sixty ( 60) days of bid opening or within such time as specified in the invitation for bids . A successful bidder shall forfeit his bid deposit upon failure on his part to r enter a contract within ten ( 10) days after the award. In its sole discretion, the city may return the bid deposit when it is determined that such successful bidder' s failure to enter a contract did 9 not cause any damage to the city. The city shall retain the right to hold such successful bidder liable for any excess damage or costs incurred by reason of the failure to execute contracts over and above the bid deposit retained by the city. 5 . 08 . 060 Collusion among bidders and disclosures . Any agreement or collusion among bidders or prospective bidders to bid a fixed price or to otherwise restrain freedom of competition by agreement, shall render the bids of such bidders void. Each bidder shall accompany his bid with a written sworn statement to the effect that no such agreement or collusion took place and a certification that the bidder is not barred from contracting with any unit of state or local government as a result of a violation of 720 Illinois Compiled Statutes, Sections 5/33E-3 or 5/33E-4 , as amended. Any disclosure to potential bidders of the terms of the bids submitted in response to an advertisement, made by the purchasing agent in advance of the opening of bids, shall render the proceedings void and shall require re-advertisement or re-award. 5 . 08 . 070 Bid opening. Bids shall be opened in the presence of one or more witnesses at the time and place designated in the invitation for bids . The amount of each bid, and such other relevant information as the purchasing agent deems appropriate, together with the name of each bidder shall be recorded; the record and each bid shall be open to public inspection. 5 . 08 .080 Bid acceptance and bid evaluation. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this ordinance. Bids shall be evaluated by the purchasing agent or the using department based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs . The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not 10 set forth in the invitation for bids . Evaluations shall be submitted to the city council by the city manager. 5 . 08 . 090 Evaluation of responsibility. As part of the bid evaluation process, the purchasing agent or the using department shall evaluate the responsibility of each bidder. To be judged responsible, a bidder must have the capability in all respects to perform fully the contract requirements, and the tenacity, perseverance, experience, integrity, reliability, capacity, facilities, equipment, and credit which will assure good faith performance. Evaluations of the responsibility of bidders shall be submitted to the city council by the city manager. 5 . 08 . 100 Correction or withdrawal of bids; cancellation of awards . Correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, may be permitted where appropriate. Mistakes discovered before bid opening may be modified or withdrawn by written or telegraphic notice received in the office designated in the invitation for bids prior to the time set for bid opening. After bid opening, corrections in bids shall be permitted only to the extent that the bidder can show by clear and convincing evidence that a mistake of a nonjudgmental character was made, the nature of the mistake, and the bid price actually intended. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the city of Elgin or fair competition shall be permitted. In lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if in the city' s sole discretion: A. The mistake is clearly evident on the face of the bid document but the intended correct bid is not similarly evident; or B. The bidder submits evidence which clearly and convincingly demonstrates that a mistake was made. All decisions to permit the correction or withdrawal of bids, or to cancel awards or contracts based on bid mistakes, shall be supported by a written determination made by the purchasing agent setting forth the basis for the determination. 11 r- 5 . 08 . 110 Adjustment of bid. In the event the low responsive and responsible bid for a construction project exceeds available funds as certified by the city manager or appropriate fiscal officer, and such bid does not exceed such funds by more than five percent (5%) , the purchasing agent or the head of the using department is authorized, when time or economic considerations preclude resolicitation of work of a reduced scope, to negotiate an adjustment of the bid price with the low responsive and responsible bidder, in order to bring the bid within the amount of available funds . Any such negotiated adjustment shall be based only upon eliminating independent deductive items specified in the invitation for bids . 5 . 08 . 120 Withdrawal of invitation for bids or requests for proposals--Procedure. An invitation for bids, a request for proposals as set forth under Chapters 5 . 10 or 5 . 12 , or other solicitation may be withdrawn, or any or all bids or proposals may be rejected in whole or in part as may be specified in the solicitation, when in the city' s sole discretion it is for good cause and in the best interests of the city. The reasons therefor shall be made part of the contract file. Each solicitation issued by the city shall state that the solicitation may be withdrawn and any bid or proposal may be rejected in whole or in part for good cause when in the city' s sole discretion it is in the best interest of the city. Notice of withdrawal shall be sent to all businesses solicited. The notice shall identify the solicitation, explain the reason for withdrawal, and, where appropriate, explain that an opportunity will be given to compete on any resolicitation or any future procurements of similar items . 5 . 08 . 130 Award of contract. Upon city council approval, the purchasing agent or the head of the using department shall notify the successful bidder with reasonable promptness by appropriate written notice. When the principal criteria of a proposed contract is price and the award is not given to the lowest bidder, a full and complete statement of the reasons for re' placing the contract elsewhere shall be placed in the minutes of the council meeting and approved by the city council . 12 Chapter 5 . 10 SOURCE SELECTION--COMPETITIVE SEALED PROPOSALS 5 . 10 . 010 Exception to competitive bid requirements-- Conditions for use. When the purchasing agent determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the city of Elgin, a contract may be entered into by use of the competitive sealed proposals method. The purchasing agent' s written determination shall be presented to the city council by the city manager requesting permission to waive bids and proceed with source selection through competitive sealed proposals . Upon authorization by the city council, a request for proposals shall be issued by the purchasing agent or the using department. Factors to be considered by the purchasing agent in determining whether to use competitive sealed proposals in lieu of bids shall include: A. Whether or not there is sufficient time or information to prepare a written specification suitable for a competitive sealed bidding. B. Whether or not to utilize fixed price or cost type contract under the circumstances . C. Whether quality, availability, or capability is overriding in relation to price in procurements of research and development, technical supplies, or services . D. Whether the initial installation needs to be evaluated together with subsequent maintenance and service capabilities and what priority should be given these requirements in the best interests of the city. E. Whether the marketplace will respond better to a solicitation permitting not only a range of alternative proposals, but evaluation and discussion of them before making the award. 5 . 10 . 020 Request for proposals . Proposals shall be solicited through a request for proposals prepared and issued by the purchasing er- agent or the using department. 13 ruk 5 . 10. 030 Public notice. Adequate public notice of the request for proposals shall be given in the same manner as provided in Section 5 . 08 . 040 Competitive Sealed Bidding, Public Notice. 5 . 10 . 040 Receipt of proposals . No proposals shall be handled so as to permit disclosure of the identity of any offerer or the contents of any proposal to competing offerers during the process of negotiation, provided however, interested parties may be provided plan holder lists, mailing lists and subcontractors lists . A register of proposals shall be prepared containing the name of each offerer, the number of modifications received, if any, and a description sufficient to identify the item offered. The register of proposals shall be open for public inspection only after contract award. 5 . 10 . 050 Evaluation factors . The request for proposals shall state the relative importance of price and other evaluation factors . 5 . 10 . 060 Discussion with responsible offerers and revisions to proposals . As provided in the request for proposals, discussions may be conducted with responsible offerers who submit proposals determined by the purchasing agent to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and conformance to, the solicitation requirements . Offerers shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers . In conducting discussions, there shall be no disclosure of the identity of competing offerers or of any information derived from proposals submitted by competing offerers . 5 . 10 . 070 Award. The purchasing agent or the head of the using department shall make a written determination of which proposal is the most advantageous to the city 14 of Elgin taking into consideration price and valuation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The city manager shall submit such written determination to the city council and request approval thereof and authority to award a contract therefor. Upon city council approval, award of the contract shall be made to the subject responsible offerer. Chapter 5 . 12 DESIGNATED PROFESSIONAL SERVICES 5. 12 . 010 Exception to competitive bid requirements . Contracts for the services of individuals possessing a high degree of professional skill where the ability or fitness of the individual plays an important part are by their nature not adapted to award by competitive bidding. Such services, including but not limited to those of accountants, lawyers, architects, engineers, environmental consultants, construction mangers, expert witnesses, insurance administrators and consultants,land surveyors and real estate appraisers shall not be subject to the competitive bidding requirements of this ordinance and may be awarded in accordance with the procedures for contracting for designated professional services as authorized in this Chapter. 5. 12 . 020 Contracting for designated professional services . A. Authority. For the purpose of procuring the services of individuals possessing a high degree of professional skill, where the ability or fitness of the individual plays an important part, any using department requiring such services may select them in accordance with the selection procedures specified in this chapter. B. Selection procedure. 1 . Conditions for use. Except as provided under Chapters 5 . 14 Sole Source Procurement, 5. 16 Small Purchases and 5 .20 Emergency Procurements, the professional services described in section 5 . 12 . 010 of this chapter shall be procured in accordance with this subsection. rik 2 . Statement of qualifications . Persons engaged in providing the designated types of professional services may submit statements of 15 qualifications and expressions of interest in providing such professional services. Persons who file statements of qualifications with the city may at any time amend the statements of qualifications by filing a new statement. A using department may specify the format for statements of qualifications . A using department may also issue requests for statements of qualifications either periodically or in anticipation of a particular contract. 3 . Request for proposals . Whenever a project requiring the professional services described in section 5 . 12 . 010, the using department shall issue a request for proposals to not less than ( 3) persons or firms the head of the using department has determined to be best qualified to receive the request for proposals for the required professional services . A using department may also issue a public notice of the need for such services through a request for proposals in the same manner as provided in section 5 . 08 .040 Competitive Sealed Bidding, Public Notice. The request for proposals shall describe the services required, list the types of information and data required of each offerer, and state the relative importance of particular qualifications . Except as otherwise specifically authorized by the city council, no requests for proposals for professional services shall be issued unless a budget appropriation or supplemental budget appropriation has previously been made for the subject matter of the request for proposals . 4 . Discussions . The head of the using department utilizing the required professional services or a designee of such officer may conduct discussions with any persons or firms prior to issuing a request for proposals to obtain information and assistance in preparing a request for proposals . Discussions may also be conducted with any offerer who has submitted a proposal to determine such offerer's qualifications for further consideration. The using department may consider, but shall not be limited to considering, ability of professional personnel, past record and experience, performance data on file, willingness to meet time requirements, location and workload of the offerer. Discussions shall not disclose any information derived from proposals submitted by other offerers . 5 . Award. The head of the using department utilizing the required professional services or a designee of such officer shall make a written determination as to which offerer is the best qualified based on the evaluation factors the using 16 department has established for the particular service. If compensation cannot be agreed upon with the best qualified offerer, then negotiations will be formally terminated with the selected offerer. If proposals were submitted by one or more other offerers determined to be qualified, negotiations may be conducted with such other offerer or offerers, in the order of their respective qualification ranking. The city manager shall submit such written determination to the city council and request approval thereof and authority to award a contract therefore. Upon city council approval, award of the contract shall be made to the subject responsible offerer. Chapter 5 . 14 SOLE SOURCE 5 . 14 . 010 Exception to competitive bid requirements . Contracts which by their nature are not adapted to award by competitive bidding such as contracts for supplies, materials, parts or equipment which are available from only a single source, contracts few for utility services such as water, electricity, gas, telephone or telegraphy, and contracts for the purchase of magazines, books, periodicals and similar articles of an educational or instructional nature shall not be subject to the competitive bidding requirements of this ordinance and may be awarded in accordance with the sole source procurement procedures authorized in this Chapter. 5. 14 .020 Sole source procurement. A contract may be authorized by the city council without competition when the purchasing agent or the head of the using department determines in writing, after conducting a good faith review of available sources, that there is only one source for the required supply, service, or construction item. The purchasing agent or the head of the using department shall conduct negotiations, as appropriate, as to price, delivery, and terms . A record of sole source procurements exceeding $10,000 .00 shall be maintained as a public record and shall list each contractor' s name, the amount and type of each contract, a listing of the item(s) procured under each contract, and the identification number of each contract file. 17 Chapter 5 . 16 SMALL PURCHASES 5 . 16 . 010 General . Any contract not exceeding $10,000 . 00 may be made in accordance with the small purchase procedures authorized in this chapter. A small contract may be awarded in accordance with the procedures in this chapter only where there is a legally separable and factually separated transaction. Contract requirements shall not be artificially or arbitrarily divided so as to constitute a small purchase under this chapter. 5 . 16 . 020 Procedures . The purchasing agent shall adopt operational procedures for making small purchases of $10,000 . 00 or less . Such operational procedures shall provide for obtaining adequate and reasonable competition for the supply, service, or construction being purchased. Persons may submit statements of low supplies and services and expressions of interest in supplying to the city the various supplies, services or construction purchased pursuant to the provisions of this chapter. The operational procedures adopted by the purchasing agent for making small purchases shall provide all such persons reasonable opportunities to submit bids or proposals for small purchases . Further, such operational procedures shall require the preparation and maintenance of written records adequate to document the competition obtained, properly account for the funds expended, and facilitate an audit of the small purchase made. 5 . 16 . 030 Award. Any contract not exceeding $5,000 may be made by the city manager. Any contract exceeding $5,000 shall be authorized by the city council before award except as otherwise provided in Chapters 5. 18 Leases for Designated City Facilities and 5 .20 Emergency Procurements . 5 . 16 . 040 Reports to council . All contracts and purchases under this chapter (Pk which have not been approved by the city council shall be reported monthly to the city council . 18 Chapter 5. 18 LEASES FOR DESIGNATED CITY FACILITIES 5 . 18 . 010 General . Lease agreements with third parties for events to be conducted in the Hemmens Auditorium, the Lord's Park Pavilion or the Wing Park Bandshell may be made by the City Manager in accordance with the procedures authorized in this chapter. For the purposes of this chapter, such lease agreements shall not include city sponsored events or performances to be conducted in such facilities . 5 . 18. 020 Procedures . The Director of Parks and Recreation, or his designee, shall be responsible for the initial negotiation of lease agreements with third parties for events to be conducted in the Hemmens Auditorium, the Lord' s Park Pavilion or the Wing Park Bandshell . All such leases shall be forwarded to the corporation counsel for review and approval . Upon final approval by the corporation counsel, such leases shall be forwarded to the City Manager for award and execution. 5 . 18 . 030 Reports to council . All leases under this chapter which have not been approved by the city council shall be reported monthly to the city council . Chapter 5 . 20 EMERGENCY CONTRACTS 5 . 20 . 010 Emergency contracts . Notwithstanding any other provisions of this code, when there exists an imminent threat to the public health, safety or welfare, the city manager may make, or authorize others to make, emergency procurements of supplies, services, or construction items necessary to resolve the subject emergency affecting the public health, safety or welfare. Such emergency procurements shall be made with such competition as is practicable under the ewk circumstances . A written determination of the basis for the emergency and for the selection of the particular contractor shall be made by the purchasing agent or the head of the using department 19 involved with the subject emergency to be included in the contract file. As soon as practicable, a record of each emergency procurement shall be made and shall set forth the contractor' s name, the amount and type of the contract, a listing of the items procured under the contract and the identification number of the contract file. A full report of the circumstances of each such emergency procurement shall be filed with the city council and shall be entered in the minutes of the council and be open to public inspection. Chapter 5 .22 REAL ESTATE ACQUISITIONS 5 . 22 . 010 Application. The proposed acquisition of any interest in real estate shall be conducted pursuant to the procedure set forth in this chapter. 5 . 22 .020 Procedure. Upon authorization by the city council, the rm. director of city properties shall be responsible for the investigation and collection of information regarding the proposed acquisition of any interest in real estate. The director of city properties in conjunction with other city staff shall investigate the acquisition of interests in real estate according to the following procedures : A. A legal description shall be developed. A plat of survey shall then be obtained from a registered Illinois land surveyor confirming the legal description or creating a new legal description. The survey shall document all structures, easements, encroachments and buildings on the subject real estate and shall include a computation of acreage and/or square footage. B. A tract search shall be obtained from a title company identifying the owners and last recorded conveyance. C. The assessor' s office records shall be reviewed to confirm ownership information on the subject property to be acquired. D. The city's engineering department shall conduct a physical inspection of the subject property and review appropriate maps and other 20 7 documentation noting any drainage issues or the existence of any flood plain or wetlands . E. The department of code administration and preservation shall conduct a physical inspection of any site improvements on the subject property noting the nature and condition of site improvements including the existence of any code violations . This review shall also include a review of city files to determine the existence of any underground tanks and an interview with the parties in interest in the property to be acquired. Any lack of cooperation by the owners at any stage of the investigation shall also be noted. F. The city's planning department shall conduct a review of zoning and land use under the current zoning ordinance of the city. G. The results of the foregoing investigation shall be submitted to an appraiser certified by the state of Illinois who shall perform an appraisal of the subject property based primarily upon the market approach to value. The appraiser shall also be instructed to obtain photographs of the subject tek property and any improvements thereon. H. The director of city properties shall prepare a written report which includes a summary of the appraisal report and the investigations referred to hereinabove and said report shall be submitted to the city council in executive session with any recommendation for acquisition. Chapter 5 . 24 PECUNIARY INTERESTS IN CONTRACTS 5 . 24 . 010 Prohibition. No city 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 city, 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 city officer or an employee shall be interested, directly or indirectly, in the purchase of any property which ( 1) belongs to the city, or (2) is sold for taxes or assessments, or (3) is sold by virtue of legal process at the suit of the city. 21 5 . 24 . 020 Exception--Percentage of ownership interest. Any elected or appointed member of the city council 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 city council or employee of the city has less than a 72% 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 . 5 .24 . 030 Exception--Monetary amount of contract. In addition to the above exemption, any elected or appointed member of the city council 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 city council 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 22 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 abstains from voting on the award of the contract (although the member shall be considered present for purposes of establishing a quorum) . 5.24 . 040 Exception--Interests in public utility companies . A contract for procurement of public utility services by the city with a public utility company is not barred by this Chapter by one or more members of the city council 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 city council or an employee having (Pk such an interest shall be deemed not to have a prohibited interest under this Chapter. 5.24 . 050 Exception-Interests in financial services . Nothing contained in this Chapter, including the restrictions set forth in subsections 5 .24 . 020, 5.24 . 030 and 5 .24 . 040, shall preclude a contract of deposit of monies, loans or other financial services by the city with a local bank or local savings and loan association, regardless of whether a member or members of the city council or employee of the city are interested in such bank or savings and loan association as an officer or employee or as a holder of less than 7i% of the total ownership interest. A member, members or employees 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 city council or employees 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 23 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 city council of the city. 5 .24 .060 Prohibitions regarding former officers or employees . A. The prohibitions regarding pecuniary interests in contracts as provided for in this chapter shall also apply to all City officers and employees for a period of one ( 1) year from the date of termination of service or employment with the City. B. No City officer or employee shall, after the termination of service or employment with the City, appear before any board, commission, committee or agency of the City in relation to any case, proceeding, application or contract in which he personally participated during the period of his service or employment, or which was under his active consideration, for a period of one ( 1) year from the date of termination of service or employment with the City. 5.24 . 070 Violation-Effect. Any contract made and procured in violation of the provisions of this chapter is void. " Section 3 . That sections 2 . 12 . 050 and 2 . 12 . 060 and Chapter 2 .88 of the Elgin Municipal Code, 1976, as amended, be and are hereby repealed. Section 4 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 5. That this ordinance shall be in full force and effect from and after March 1, 19 5. /=-/h% George yinDeVoorde, Mayor r* 24 OW Presented: February 22, 1995 Passed: February 22, 1995 Vote: Yeas 7 Nays 0 Recorded: February 23, 1995 Published: Attest: 34-45-1.Dolonna Mecum, City Clerk 25