G13-13 Ordinance No. G13-13
AN ORDINANCE
AMENDING TITLE 5 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED,
ENTITLED "PROCUREMENTS" TO PROVIDE FOR A REQUIRED MINIMUM
PERCENTAGE OF ELGIN RESIDENT WORKERS ON CITY CONSTRUCTION
CONTRACTS AND TO PROVIDE FOR BID INCENTIVES FOR THE UTILIZATION OF
APPRENTICES WHO ARE ELGIN RESIDENTS
WHEREAS,the City of Elgin is a home rule municipality as defined in Article 7,Section 6A
of the 1970 Constitution of the State of Illinois; and
WHEREAS,a home rule unit may exercise any power and perform any function pertaining to
its government and affairs; and
WHEREAS,an ordinance providing for the regulation,procedures and requirements for the
procurement of supplies, services and construction by the City of Elgin pertains to the government
and affairs of the City of Elgin; and
WHEREAS,unemployment levels within the City of Elgin have been and continue to remain
at a higher level than unemployment levels in the State of Illinois and nationwide; and
WHEREAS, a requirement in the City's procurement ordinance requiring that a certain
minimum percentage of city residents be employed on specified city construction contracts and a
provision providing for a bid incentive for contractors who utilize apprentices who are residents of
Elgin will assist in reducing unemployment levels within the City of Elgin and will assist in
providing employments opportunities and employment training to Elgin residents.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. That Chapter 5.08 of the Elgin Municipal Code, 1976, as amended, entitled
"Source Selection; Competitive Sealed Bidding"be and is hereby further amended by adding a new
Section 5.08.170 thereto entitled "Construction Contracts-Percentage of City Resident Worker
Hours",to read as follows:
"5.08.170 Construction Contracts-Percentage of City Resident Worker Hours:
A. For any city construction contract advertised,or if not advertised, awarded after the
effective date of this ordinance having an estimated contract value of$100,000.00 or more, and
where not otherwise prohibited by federal, state or local law,the total hours worked by persons on
the site of the construction project by employees of the contractor and subcontractors shall be
performed at least ten percent (10%) by actual residents of the City of Elgin.
rik This minimal percentage of Elgin residents shall not be understood as limiting or deterring
the fuller utilization of Elgin residents beyond this level, but is intended instead as a minimal
requirement. Contractors shall make good faith efforts to utilize qualified residents of the City of
Elgin in unskilled and skilled labor positions. The purchasing director shall separately monitor the
utilization of residents of the city in skilled and unskilled positions, and shall report his or her
findings to the city manager and the city council when substantially all of the construction contracts
for each construction season have been closed.The purchasing director shall also report whether he
or she has determined that separate minimum percentages of Elgin residents are warranted for skilled
and unskilled labor positions.
The purchasing director shall develop standards and procedures for reducing or waiving this
minimum percentage level of Elgin residents when a bidder or contractor can demonstrate the
impracticality or excessive cost of complying with this percentage level for particular contracts or
classes of employees. Except as otherwise provided in the purchasing director's standards and
procedures, a waiver or reduction shall be deemed appropriate if a contractor or subcontractor has
unsuccessfully solicited a sufficient number of residents of the City of Elgin to perform the work
identified in the bid solicitation and has documented such effort to the satisfaction of the purchasing
director. In addition, such standards and procedures shall require that a contractor seeking a waiver
or reduction shall have provided timely notice of the need for qualified residents of the City of Elgin
to an appropriate source of referrals, which source shall be entitled to comment on any waiver or
reduction application. If the purchasing director determines that a lesser percentage standard is
appropriate with respect to a particular contract subject to competitive bidding prior to the bid
solicitations for such contract, such bid solicitations shall include a statement of such revised
standards. The purchasing director shall file annual reports of his or her determinations on all
reduction or waiver requests made pursuant to this paragraph with the city manager and the city
council.
B. Implementation of the requirements established in subsection A of this section will be
achieved by including in contracts and subcontracts described therein the following language:
The contractor and all subcontractors that perform work on the site on the construction
project undertaken pursuant to this contract shall comply with the minimum percentage of total
worker hours performed by actual residents of the City of Elgin as specified in Section 5.08.170 of
the Elgin Municipal Code.
"Actual residents of the City of Elgin"shall mean persons domiciled within the corporate city
limits of the City of Elgin. The domicile is an individual's one and only true, fixed and permanent
home and principal residence which has not been adopted with the intention of again taking up or
claiming a previous residence outside the corporate city limits of the City of Elgin.
The contractor shall provide for the maintenance of adequate employee residency records to
ensure that actual Elgin residents are employed on the project. The contractor and subcontractors
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shall maintain copies of personal documents supportive of every Elgin employee's actual record of
residence.
Weekly certified payroll reports (U.S. Department of Labor Form WH-347 or equivalent)
submitted to the head of the using department in triplicate,shall identify clearly the actual residence
of every employee on each submitted certified payroll. The first time that an employee's name
appears on a payroll, the date that the company hired the employee should be written in after the
employee's name.
Full access to the contractor's and subcontractors'employment record shall be granted to the
purchasing director, the head of the using department, the corporation counsel, the professional
standards officer, or any duly authorized representative thereof. The contractor and subcontractors
shall maintain all relevant personnel data in records for a period of at least three years after final
acceptance of the work.
At the direction of the using department,affidavits and other supporting documentation will
be required of the contractor to verify or clarify an employee's actual address when doubt or lack of
clarity has arisen.
Good faith efforts on the part of the contractor to provide utilization of actual Elgin residents
shall not suffice to replace the actual, verified achievement of the requirements of this section
concerning the worker hours performed by actual Elgin residents.
When work is completed,in the event that the city has determined that the contractor failed to
ensure the fulfillment of the requirement of this section concerning the worker hours performed by
actual Elgin residents or has failed to report in the manner as indicated above,the city will thereby be
damaged in the failure to provide the benefit of demonstrable employment to Elgin residents to the
degree stipulated in this section.Therefore,in such a case of non-compliance it is agreed that 1/10 of
1 percent(.01%),0.001,of the approved contract value for the subject contract shall be surrendered
by the contractor to the city in payment for each percentage of shortfall toward the stipulated
residency requirement.Failure to report the residency of employees entirely and correctly shall result
in the surrender of the entire liquidated damages as if no Elgin residents were employed in either of
the categories.The willful falsification of statements and the certification of payroll date may subject
the contractor or subcontractors or employee to prosecution. Any retainage to cover contract
performance that may become due to the contractor may be withheld by the city pending the
purchasing director's determination whether the contractor must surrender damages as provided in
this paragraph.
Nothing herein provided shall be construed to be a limitation upon the "Notice of
Requirements for Affirmative Action to Ensure Equal Employment Opportunity, Executive Order
11246" and "Standard Federal Equal Employment Opportunity, Executive Order 11246", or other
affirmative action required for equal opportunity under the provisions of the subject contract.
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C. In addition to assessing the monetary damages stipulated in subsection B hereof,the
purchasing director may, in lieu of declaring the contractor to be a non-responsible bidder,require
the contractor to post a surety bond or other appropriate security in an amount representing ten
percent of the approved contract value for subsequent contracts on which the contractor bids,which
the contractor shall agree to forfeit in its entirety in the event that full compliance with the
requirements of this section is not achieved during the performance of any future contract that the
contractor enters with the City of Elgin.
D. Any person who is employed in a construction project subject to the provisions of this
section who knowingly supplies false information concerning his or her residence shall be subject to
a fine of not less than$500.00 for each offense. Any person found to have violated this section shall
also be barred from employment on any construction project subject to this section for a period of
five years."
Section 2. That Chapter 5.08 of the Elgin Municipal Code, 1976, as amended, entitled
"Source Selection;Competitive Sealed Bidding"be and is hereby further amended by adding a new
Section 5.08.180 thereto entitled"Construction Contracts-Apprentice Utilization",to read as follows:
"5.08.180: Construction Contracts-Bid Incentive For Apprentice Utilization:
A. For purposes of this section only the following definitions apply:
"Apprentice"means any person who is sponsored into an apprenticeship training program by
a contractor and who is an actual resident of the City of Elgin as defined in Section 5.08.170. The
contractor's apprenticeship training program must be approved by and registered with the United
States Department of Labor, Office of Apprenticeship and Training Programs, or be reasonably
equivalent to such programs.
"Bid incentive"means an amount deducted,for bid evaluation purposes only,from the total
bid price that is attributable to labor costs, in order to calculate the bid price to be used to evaluate
the bid on a competitively bid construction project.
"Earned credit" means the amount of the bid incentive allocated to a contractor upon
completion of a construction project in which the contractor met or exceeded his or her goals for the
utilization of apprentices in performance of the total labor hours performed under the contract.
"Earned credit certificate" means a certificate issued by the purchasing director evidencing
the amount of earned credit a contractor has been awarded.
"Labor hours" means the total hours of workers receiving an hourly wage who are directly
employed at the work site. "Labor hours"shall include hours performed by workers employed by the
contractor and all subcontractors working at the work site. "Labor hours" shall not include hours
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worked by non-working foremen, superintendents, owners and workers who are not subject to
prevailing wage requirements.
B. 1. For any city construction contract advertised after the effective date of this
ordinance having an estimated contract value of$100,000.00 or more, and where not otherwise
prohibited by federal,state or local law,the purchasing director shall allocate to any qualified bidder
the following bid incentive for utilization of apprentices in performance of the total labor hours
performed under contract.
Total Labor Hours Performed by Apprentices Bid Incentive
5 to 10% 1/2% of bid price
11 to 15% 1% of bid price
The bid incentive shall be calculated and applied in accordance with the provisions of
subsection B2. The bid incentive is used only to calculate an amount to be used in evaluating the
bid. The bid incentive does not affect the contract price.
2. Upon the completion of a contract subject to this section, a contractor may
apply to the purchasing director for earned credits if the contractor met or exceeded his or her
apprentice utilization goals established in the contract. If the purchasing director determines that the
contractor has successfully met his or her apprentice utilization goals,the purchasing director shall
issue an earned credit certificate that evidences the amount of earned credits allocated to the
contractor. The contractor may apply the earned credits as the bid incentive for any future
construction project, contract bid of equal or greater dollar value.
The earned credit certificate is valid for twelve months from the date of issuance and shall
not be applied towards any future contract bid after the expiration of that period.
C. The contractor shall maintain accurate and detailed books and records necessary to
monitor compliance with this section and shall submit such reports as required by the purchasing
director or the head of the using department.
Full access to the contractor's and subcontractor's records shall be granted to the purchasing
director, the head of the using department, the corporation counsel, the professional standards
officer, or any duly authorized representative thereof. The contractor and subcontractors shall
maintain all relevant records for a period of at least three years after final acceptance of the work.
D. The purchasing director is authorized to adopt, promulgate and enforce reasonable
rules and regulations pertaining to the administration and enforcement of this section."
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Section 3. That all ordinances or parts of ordinances in conflict with the provisions of
this ordinance be and are hereby repealed to the extent of any such conflict.
Section 4. That this ordinance shall be in full force and effect upon its passage and
publication from and after April 1, 2013.
David J. ■lryor
Presented: February 27, 2013
Passed: February 27, 2013
Omnibus Vote: Yeas: 6 Nays: 0 y"C„„ ECG
Recorded: February 27, 2013
Published: February 29, 2013
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Attest: _ s ";ef - ; °
-LGiAti .,,
Kimberly Dewis, Ci Clerk
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