Ordinance 2021-14 UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
ORDINANCE NO. 2021-14
AN ORDINANCE OF THE UNITED CITY OF YORKVILLE,KENDALL COUNTY,
ILLINOIS,AMENDING THE YORKVILLE CITY CODE,TITLE 1,CHAPTER 7,
SECTION 3: PROCUREMENT
Passed by the City Council of the
United City of Yorkville,Kendall County, Illinois
This 22nd day of June,2021
Published in pamphlet form by the
authority of the Mayor and City Council
of the United City of Yorkville,Kendall
County,Illinois on July 23, 2021.
Ordinance No. 2021-14
AN ORDINANCE OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY,
ILLINOIS,AMENDING THE YORKVILLE CITY CODE,TITLE 1,CHAPTER 7,
SECTION 3: PROCUREMENT
WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City") is a duly
organized and validly existing non-home rule municipality created in accordance with the
Constitution of the State of Illinois of 1970 and the laws of the State; and,
WHEREAS, Title 1, Chapter 7, Section 3 of the Yorkville City Code, establishes
procedures for all purchases and contracts to be accepted by the City; and,
WHEREAS,the Mayor and the City Council(the"Corporate Authorities")have reviewed
the procedures for contracts and purchases and have determined that it is in the best interest of the
City and its residents to amend Title 1, Chapter 7, Section 3 of the Yorkville City Code to provide
for the procurement of all goods and services required by the City.
NOW,THEREFORE,BE IT ORDAINED by the Mayor and City Council of the United
City of Yorkville, Kendall County, Illinois, as follows:
Section 1. That Title 1, Chapter 7, Section 3 of the Yorkville City Code, be and is hereby
deleted in its entirety and the following added instead:
"1-7-3: Procurement:
A. Procurement objectives:
1. It is the purpose of this subsection to establish competitive bidding and economical
procurement practices,which shall apply to all purchases as herein described.
2. The City Administrator or his or her designee shall be the general purchasing agent of
the City. Subject to the terms of this chapter, the City Administrator, or his or her
designee shall oversee the purchasing process of all materials, supplies, services, and
equipment necessary for the operation of the City.
3. Procurement procedures shall be consistent with any applicable federal, state, and local
laws and any contractual obligations with other governmental agencies.
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4. The purchasing requirements, as herein established,are to be construed as maximum
requirements and do not restrict those authorized to make purchases for the City to go
beyond these requirements.
5. The purchasing requirements will not necessarily govern every purchasing situation
that may arise. In the event a specific purchase is not covered by these requirements,
the purchase shall be made based on these objectives following consultation with the
City Administrator or his or her designee.
All purchasing agreements shall provide that payment will be made in compliance with the
Local Government Prompt Payment Act(50 ILCS 505/1).
B. Purchasing requirements:
1. Competitive bidding- (invitation to bid[ITB]). The invitation for bid(ITB) method is
used to initiate a competitive sealed bid procurement. The ITB applies to contracts for
construction or repair work and purchase of apparatus, supplies, materials, or
equipment of more than twenty-five thousand dollars ($25,000.00). ITBs should
include detailed specifications,the scope of work, contract, and any other legal
requirements. These bids are received sealed by a specific date and are opened and
read out loud publicly in-person or electronically. The standard for awarding contracts
is based on the lowest responsive and responsible bidder, or bidders, based on the bid
amount listed. For an ITB, the pricing is the main criteria.
a. An invitation to bid(ITB or bid) shall be issued for contracts under this subsection
and shall include specifications and all contractual terms and conditions
applicable. Any business submitting a bid or proposal is referenced as a bidder in
this Code.
(1) Bids shall be obtained by publishing a public notice in a newspaper of
general circulation, City website, electronic bidding portal, or applicable
trade publications.
(2) Bids shall be published for at least ten(10) days, excluding Sundays and
legal holidays, in advance of the due date announced in the invitation for the
public opening.
(3) The City Administrator shall designate a means of distribution or
determination of information to interested parties using reasonably available
methods. Such methods may include publication in newspapers of general
circulation, electronic or paper mailing lists, and web sites designated and
maintained for such notification. Said notice shall state the place, date, and
time of the bid opening.
(4) All bids and proposals must be sealed and submitted set forth in the request
prior to the date and time stated for the opening of responses.
(5) All contracts are to be awarded pursuant to this subsection shall be approved
by the City Council.
(6) No contract shall be assignable or sublet by the successful bidder without the
written consent of the City Administrator or his or her designee. In no event
shall a contract or any part thereof be assigned or sublet to a bidder who had
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been declared not to be a responsible bidder in consideration of bids
submitted in response to an invitation for bids for the particular contract.
2. Competitive proposals (request for qualification[RFQ]/request for proposal[RFP]).
The request for qualifications (RFQ) method may be used as a pre-qualification stage
of the procurement process unless specifically required as provided in the Local
Government Professional Services Selection Act(50 ILCS 510). Only those
proponents who successfully respond to the RFQ and meet the qualification criteria
listed within the RFQ will move forward in the selection process that will include
submitting a cost proposal. The request for proposal(RFP) is a process where the
strategy, objectives, cost, and other details that will assist with the ability to choose the
most qualified vendor are included. The RFP can be used without an RFQ as a bidding
technique to obtain cost information, but the pricing is not the main criteria. This two-
stage approach can both streamline the solicitation process and assist in gathering
information about candidates for future use.
3. Informal purchasing- (agreements/contracts/quotes). Another procurement method
would be informal purchasing. Informal purchasing is when the threshold of the
purchase does not meet the competitive bidding requirements. The City's informal
bidding threshold is five thousand dollars ($5,000.00)to twenty-five thousand dollars
($25,000.00). This method would include soliciting quotes for goods and services and
developing or reviewing service contracts or agreements. Any purchases under five
thousand dollars ($5,000.00) can be purchased with a purchasing card with the
department head's permission. It is assumed that staff is using their best judgment
when making these purchases about quality and price. Purchases of goods or services
in excess of twenty-five thousand dollars ($25,000.00)require a formal competitive
bidding process.
C. Electronic bid process—Electronic transactions: The City may conduct procurement
transactions, including competitive sealed bids, competitive sealed proposals, and informal
quotations,by electronic means or in electronic form. The City Administrator shall adopt
operational procedures regarding:
1. Appropriate security to prevent unauthorized access to the bidding, approval and award
processes;
a. Identification;
b. Confidentiality; and
c. Utilization of digital signatures,where applicable.
2. Electronic posting: The City may electronically post solicitations, determinations, and
other information related to procurement on a centralized interne web site designated
by the City for this purpose.
3. Electronic bid openings: The City may hold public bid openings electronically with the
opportunity for public access and input.
4. Electronic records: In accordance with the Illinois Electronic Commerce Security Act,
5 ILCS 175/1-101 et seq.,whenever this article requires a record to be "written" or "in
writing," an electronic record satisfies that requirement.
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D. Bonding requirements: All competitive bidding proposals must be sealed and, in the case of
contracts for the construction of municipal buildings or facilities or labor, shall be
accompanied by a bid security,performance bond, or labor and materials bond.
1. Bid security in an amount of ten percent(10%) or such other percentage as stated in
the conditions of the full amount of the bid in the form of a bid bond. In a reasonable
time after the bid opening, bid deposits of all, except the three lowest responsible
bidders, will be released. The remaining deposits will be released after the successful
bidder has entered into the contract and furnished the required insurance and any
additional bonds. The bid deposit shall become the property of the City if the
successful bidder within fourteen(14) days from awarding the contract refuses or is
unable to comply with the contract requirements, not as a penalty, but as liquidated
damages.
2. A performance bond, labor, and material bond or other bonds shall be required of the
successful bidder at the time of execution of the contract, to guarantee the completion
of any work to be performed by the contractor under the contract,payment of material
used in such work, and for all labor performed in such work, including subcontractors.
A performance bond satisfactory to the City must be executed by a surety company
authorized to do business in the State of Illinois or otherwise secured in a manner
satisfactory to the City in an amount equal to one hundred ten percent(110%) of the
contract price specified. The surety on the bond shall be a company that is licensed by
the Department of Insurance, authorizing it to execute surety bonds. The company
shall have a financial strength rating of at least "A," as rated by A.M. Best Company,
Inc., Moody's Investors Service, Standard& Poor's Corporation, or a similar rating
agency.
In the event that the bidder fails to furnish the bonds within fourteen(14) days after
notification of the award, then the bid guarantee shall be retained by the City as
liquidated damages and not as a penalty. It is agreed that the sum is a fair estimate of
the amount of damages that the City will sustain due to the bidder's failure to furnish
the bonds.
E. Bid exemptions: Unless prohibited by state or federal law,the following contracts and any
other contracts which by their nature are not adapted to award by competitive bidding, shall
be exempt from the purchasing requirements in subsection 1-7-3.B:
1. Purchase contracts, for either labor, materials or both, which by their nature are not
adaptable to award by competitive bidding, such as,but not limited to, 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, contracts for supplies, materials,
parts or equipment which are available only from a single source, and contracts for the
printing of distributable information.
2. Any purchases may be exempt from the purchasing requirements in subsubsection 1-7-
3.B if a two-thirds ( 2/3)vote of the City Council,then holding office is acquired.
F. Bidding cancellation: An invitation for bids, a request for proposals, or other solicitation
may be canceled, or any or all bids or proposals may be rejected in whole or in part as may
be specified in the solicitation by the City Administrator when in the best interests of the
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City.Notice of cancellation shall be sent to all persons solicited. The reasons therefor shall
be made part of the contract file. Each solicitation issued by the City shall state that the
solicitation may be canceled and that any bid or proposal may be rejected in whole or in part
when in the best interests of the City. The reason(s) for rejection shall be provided upon
request by unsuccessful bidders or offerors.
G. Cooperative procurement:
1. Authority: When deemed in the best interest of the City by the City Administrator,
supplies, services, or construction may be procured pursuant to a cooperative
purchasing agreement in accordance with the Governmental Joint Purchasing Act, 30
ILCS 525/1 et seq., as amended.
2. Cooperative purchasing: The City may participate in, sponsor, conduct, or administer
a cooperative purchasing agreement for the procurement of any supplies, services, or
construction with one (1) or more governmental units in accordance with a formal
agreement entered into by the participants. Such cooperative purchasing may include,
but is not limited to,joint or multi-partycontracts between
public procurement units
and open-ended public procurement unit contracts that are made available to other
governmental units.
3. Competition: All cooperative purchasing conducted under this subsection shall be
through contracts awarded through full and open competition, including the use of
source selection methods substantially equivalent to those specified in subsection 1-7-
3.B of this Code.
H. Disposal of property:
1. Real property:
a. The sale or lease of real property by the corporates authorities is authorized
pursuant to Sections 11-76-1, 11-76-2 and 11-76-3 of the Illinois Municipal Code,
65 ILCS 5/1-1-1 et seq. (the "Illinois Municipal Code")
b. In the event the corporate authorities determine that any real property is surplus
real estate and no longer required for municipal operations, the sale of real
property deemed surplus is authorized pursuant to sections 11-76-4.1 and 11-76-
4.2 of the Illinois Municipal Code.
2. Personal property:
a. Pursuant to Section 11-76-4 of the Illinois Municipal Code, whenever the City
owns any personal property which is no longer necessary or useful to or in the
best interests of the City to retain with a residual value of less than five thousand
dollars ($5,000.00), the City Administrator is authorized to sell or dispose of such
property by any method the City Administrator deems to be in the best interests of
the City, including not limited to:
(1) Competitive sealed bidding;
(2) Donation;
(3) Recycling company;
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(4) Public auction;
(5) Trade-in, when the City Administrator or his or her designee determines the
trade-in value is expected to exceed the value estimated to be obtained
through the sale of such supplies; or
(6) Disposal, when the City Administrator or his or her designee determines that
surplus supplies have no resale value, or that the cost of transportation,
storage, and sale of said supplies will exceed the anticipated sale value.
b. Any personal property which has a residual value in excess of five thousand
dollars ($5,000.00) shall be sold or disposed of pursuant to any one of the
methods set forth above as recommended by the City Administrator and approved
by the City Council.
c. The surplus property shall not be made available to any elected or appointed
official or employee of the City, unless through a public auction or competitive
sealed bidding process.
I. Change orders:
After a contract is awarded pursuant to the purchasing requirements in subsection 1-7-3.B,
additional purchases or modifications may be made under the contract, or the terms of the
contract may be extended without rebidding the materials, supplies, services or equipment
involved. All change orders shall be in writing and approved as set forth in this Section.
1. If a change order for any public works contract authorizes or necessitates any increase in
the contract price that is 50%or more of the original contract price or that authorizes or
necessitates any increase in the price of a subcontract under the contract that is 50% or
more of the original subcontract price, then the portion of the contract that is covered by
the change order must be resubmitted for bidding in accordance to purchasing
requirements in this Code per Public Works Contract Change Order Act(50 ILCS 525/5).
2. Change orders not requiring re-bidding as set forth in subparagraph(A) of this Section,
and which are in excess of ten thousand dollars ($10,000)and up to twenty-five thousand
dollars ($25,000) may be approved by the City Administrator only upon a written
determination that(1)the circumstances said to necessitate the change in performance
were not reasonably foreseeable at the time the contract was signed, or(2)the change is
germane to the original contract as signed, or(3)the change order is in the best interest of
the City and is authorized by law. Change orders not requiring re-bidding as set forth in
subparagraph(A) of this Section, and which are in excess of twenty-five thousand dollars
($25,000), or provide for an extension of time to complete the contract by a total of 30
days or more, shall be approved by the City Council only upon a written determination
that(1)the circumstances said to necessitate the change in performance were not
reasonably foreseeable at the time the contract was signed, or(2)the change is germane
to the original contract as signed, or(3)the change order is in the best interest of the City
and is authorized by law(720 ILCS 5/33E-9).
J. Spending limits:
1. Department heads of the City, or their assignees, in the performance of their respective
duties on behalf of the City, shall be empowered to authorize the ordering or purchase
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of budgeted materials, fixtures, equipment, services and supplies as may be deemed
essential in the normal, day to day operations.
2. The department head is responsible for determining if an item is budgeted, if adequate
funds are available and if proper purchasing procedures have been followed.
K. Signing of contracts:
1. All contracts must be executed by the City Administrator or his or her designee if the
contract amount is less than twenty-five thousand dollars ($25,000.00).
2. If the contract is twenty-five thousand dollars($25,000.00) or more, then the Mayor or
his or her designee must sign the contract with the approval of the City Council.
L. Ineligible contractors or vendors:
1. The City Council may debar a vendor, subcontractor, or supplier for:
a. Conviction of,or civil judgment for:
(1) Commission or attempted commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a private or
public contract or subcontract;
(2) Violation or attempted violation of federal or state statutes, or any other
legally applicable law, regulation, or rule relating to the submission of bids,
proposals, or claims;
(3) Commission or attempted commission of embezzlement, theft, forgery,
bribery, falsification or destruction of records, making false statements,tax
evasion, or receiving stolen property; or
(4) Commission or attempted commission of any other offense or engaging in or
attempting to engage in conduct indicating a lack of truthfulness, integrity, or
honesty,which affects the responsibility of the vendor.
b. Violation of the terms of a City ordinance or City contract or subcontract so
severe as to justify debarment including, but not limited to:
(1) Willful failure to perform in accordance with the terms of one (1) or more
contracts or subcontracts, including the hiring of subcontractors or suppliers
debarred under this subsection;
(2) A history of failure to perform one (1)or more contracts or subcontracts;
(3) A history of unsatisfactory performance of one (1) or more contracts or
subcontracts; or
(4) A history of failure to meet equal employment opportunity obligations, or
prevailing wage obligations, or any other contracting or subcontracting
obligation imposed by this Code or any other law.
c. Making, attempting, or causing any false, deceptive, or fraudulent material
statement in any bid, proposal, or application for City or any government work or
in the performance of any such contract for the City or a government agency, or
application for any permit or license.
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d. Refusal to cooperate with reasonable requests of City inspectors,representatives,
or other appropriate City personnel with respect to work under contract
provisions,plans, or specifications, or otherwise,pursuant to the duties of that
City personnel.
e. Founding, establishing or operating an entity in a manner designed to evade the
application or defeat the purpose of these rules or any provision of this Code, rule
or regulation, the statutes,rules or regulations of the State of Illinois, or any
federal statute, rule or regulation, or any other legally applicable law, regulation,
or rule.
f. Improper conduct, including,but not limited to,the commission or attempted
commission of:
(1) Intentional or negligent billing irregularities;
(2) Submitting false or frivolous or exaggerated claims, documents, or records;
(3) Falsification of claims, documents, or records;
(4) Willful or grossly negligent destruction of documents or records the vendor
had an obligation to maintain;
(5) Bribery or coercion of a government official, or other unlawful tampering
with a government official;
(6) Use of false or deceptive statements to obtain some benefit, or causing
competition to be restrained or limited;
(7) Misrepresentation to any governmental agency or government official;
(8) Violation of ethical standards established by the City, or other dishonesty
incident to obtaining,prequalifying for, or performing any contract or
modification thereof;
(9) Failing to pay, after a reasonable period of time, any judgment or other
adjudicated debt owed to the City after a request for payment; or
(10) Failing to defend, indemnify, or hold harmless the City pursuant to a
contractual obligation after having received a request to do so.
g. Any other cause of so serious or compelling a nature that it affects the
responsibility of the vendor.
h. Debarment, disqualification, or suspension by any other government agency for
any reason.
i. Disqualification or rejection of a bid from a vendor or contractor on three (3) or
more occasions within a three-year period.
2. Effect of debarment:
a. Notwithstanding the debarment of a contractor,the City may continue contracts or
subcontracts in existence at the time the contractor was debarred unless the Mayor
directs otherwise.
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b. Debarred contractors are further prohibited from performing work as a contractor,
subcontractor or materialman on any tier on City contracts. The City shall not
accept or enter into any contract where a debarred contractor is proposed to
perform the work.
c. The debarment may be canceled prospectively, or the duration and scope may be
reduced or waived by the Mayor, upon the written application of the debarred
individual or entity, supported by documentation, for any of the following
reasons:
(1) Newly discovered material evidence or documentable error in the findings of
the City Council's decision.
(2) Reversal of the conviction or judgment on which the ineligibility is based on
the conviction or judgment was based on an admission of conduct that was a
cause for debarment.
(3) Bona-fide change in ownership and control of the entity, or other mitigating
factors sufficient, in the judgment of the City Council, to remove the
conditions giving rise to the conduct that led to the ineligibility.
3. Penalties:
a. Any vendor providing services or hiring a subcontractor on any tier or supplier
that has been debarred under this subsubsection may be subject to one (1) or more
of the following:
(1) Immediate termination of all City contracts without recourse;
(2) Placement on the list of debarred vendors for at least five (5)years;
(3) Is guilty of a Class IV violation for each day, or part thereof, that the
debarred vendor performed work;
(4) Reduction of their contract price by an amount equal to the value of the work
performed by a debarred vendor; and
(5) Any City employee willfully violating this subsection or hiring a debarred
vendor shall be subject to disciplinary action, up to and including
termination.
M. Bid protests:
1. Right to protest: Any actual or prospective bidder, offeror, or contractor who is
aggrieved in connection with the solicitation or award of a contract may protest to the
City Administrator. The protest shall be submitted in writing within ten(10) calendar
days after such aggrieved person knows or should have known of the facts giving rise
thereto.
2. Contract claims: All claims by a contractor against the City relating to a contract shall
be submitted in writing to the City Administrator. The contractor may request a
conference with the City Administrator on a submitted claim. Claims include, without
limitation, disputes arising under a contract and those based upon breach of contract,
mistake, misrepresentation, or other cause for contract modification or rescission.
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3. Authority to resolve protests and contract claims:
a. Protests: The City Administrator shall have the authority consistent with this
Code to settle and resolve a protest of an aggrieved bidder, offeror, or contractor,
actual or prospective, concerning the solicitation or award of a contract.
b. Contract claims: The City Administrator, after consulting with the City Attorney,
shall have the authority to resolve contract claims, subject to the approval of the
City Administrator or City Council, as applicable, regarding any settlement that
will result in a change order or contract modification pursuant to subsection 1-7-
3.I of this Code.
4. Decision: If a protest brought pursuant to this section is not resolved by mutual
agreement, the City Administrator shall promptly issue a decision in writing. A copy of
the decision shall be mailed or otherwise furnished immediately to the protestant or
claimant and any other party intervening. The decision shall state the reasons for the
action taken.
5. Finality of decision: A decision under this section shall be final and conclusive unless,
within ten(10) calendar days from the date of receipt of the decision,the protestant or
claimant files a written appeal with the City Administrator.
6. Authority of the city administrator: The City Administrator shall have the jurisdiction
to review and determine any appeal by an aggrieved party from a determination by the
City Administrator regarding a protest or contract claim. Such a decision shall be final
and conclusive.
N. Inconsistent state law: If any provision of this section shall conflict with any provision of
any statute or public law now or hereafter enacted by the Illinois General Assembly, such
statute or public law shall control.
(Ord.No. 2020-39 , § 1, 7-28-2020)
Editor's note(s)—Ord. No. 2020-39 Editor's note(s)—, deleted former § 1-7-3 entitled "Contracts
and purchases," which derived from: Ord. 1975-8, adopted June 26, 1975; Ord. 2008-33,
adopted May 13, 2008; Ord. 2011-11, adopted Mar. 22, 2011; Ord. 2017-72, adopted Nov.
28, 2017; and Ord. No. 2020-33 Editor's note(s)—, § 1, adopted May 26,2020, and enacted
a new § 1-7-3 as herein set out above.
State law reference(s) 65 ILCS 5/8-9-1 et seq. "
Section 2. This Ordinance shall be in full force and effect from and after its passage and
approval as provided by law.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this
22°d day of June, A.D. 2021.
DEPUTY CLERK
Ordinance No.2021-14
Page 11
KEN KOCH AYE DAN TRANSIER ABSENT
JACKIE MILSCHEWSKI AYE ARDEN JOE PLOCHER ABSENT
CHRIS FUNKHOUSER AYE MATT MAREK AYE
SEAVER TARULIS AYE JASON PETERSON AYE
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois
AP:
this 22.'iday of JU ( , A.D. 2021. /
laM
MAYOR IV
Attest:
t-en
Jl
"PUTY CLERK
Ordinance No.2021-14
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