Ordinance 2022-39UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
ORDINANCE NO.2022-39
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 25" day of October, 2022
Published in pamphlet form by the
authority of the Mayor and City Council
of the United City of Yorkville, Kendall
County, Illinois on November 3, 2022.
Ordinance No. 2022-39
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 as "Exhibit A".
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
25th day of October, A.D. 2022. A
4s �
City Clerk
U
Ordinance No. 2022-39
Page 1
KEN KOCH
AYE
DAN TRANSIER
AYE
ARDEN JOE PLOCHER
ABSENT
CRAIG SOLING
AYE
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 this
day of NOW. A.D. 2022.
Mayor
Attest:
I City erk
Ordinance No. 2022-39
Page 2
CHAPTER 7 MUNICIPAL FINANCES
1-7-1: BUDGETAND BUDGET OFFICER:
1-7-2: TAXLEVY:
1-7-3: PROCUREMENT:
1- 7-4: PUBLIC BENEFIT TAX AND FUND:
1- 7-5: WATER TOWER CONSTR UCTION ACCO UNT.-
1-7-6: WAGE RATES FOR PUBLIC WORKS EMPLOYEES:
1-7-7: DISCLOSURE OF PUBLIC RECORDS; FEES:
1-7-8: DEVELOPMENT FEES FOR EXTENDING MUNICIPAL SERVICES:
1-7-9: ANNEXATION AND ZONING FEES:
1-7-10: DIRECTOR OF FINANCE:
1-7-11: VOLUNTARYPAYMENT
1-7-3: PROCUREMENT:
A. PROCUREMENT OBJECTIVES:
1. It is the purpose of this subsection to establish purchasing procedures for all materials and
services required by the City including the process for competitive bidding and the
application of economical procurement practices.
2. The City Administrator or his or her designee shall be the 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 all applicable federal, state, and local
laws and any contractual obligation with other governmental agencies.
4. 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 50511).
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 ITB 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 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 but must be used if 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.
a. Requests for Proposals shall be considered when determining the following through a
Qualifications Based Selection (QBS) process:
(1) Whether the contract needs to be other than a fixed price type;
(2) Whether oral or written discussions may need to be conducted with proposers
concerning technical and price aspects of their proposals;
(3) Whether the award may need to be based upon a comparative evaluation as stated
in the Request for Proposals of differing price, quality, and contractual factors in
order to determine the most advantageous offering to the city. Quality factors
include technical and performance capability and the content of the technical
proposal; and
(4) Whether the primary consideration in determining award may not be price.
b. Request for Proposals shall be prepared in accordance with the bid requirements
listed in the above subsections 1-7-3(B)(1)(a) I — 6, and shall also include:
(1) A statement that discussions may be conducted with proposers who submit
proposals determined to be reasonably susceptible of being selected for the
contract award, but that proposals may be accepted without such discussions;
(2) A statement of when and how price should be submitted; and
(3) A listing of the criteria by which a proper shall be selected and recommended to
the city council may also be included.
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 Administrator is authorized to make any purchase or enter into any service
contract which twenty-five thousand dollars ($25,000.00) or less. This method may
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 internet 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
Illinois Compiled Statutes 175/1-101 et seq., whenever this Article requires a record to be
"written" or "in writing," an electronic record satisfies that requirement.
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.
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 attorney 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 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 lieu of a
performance bond, a letter of credit from a banking institution with assets in excess of
$150,000,000 authorized to do business in the State of Illinois.
In the event that the bidder fails to furnish a bond or letter of credit within 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:
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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 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 Illinois Compiled Statutes 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 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 -party contracts
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. PROPERTY:
1. Real Property:
The purchase, 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 511-1-1 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:
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:
a. Competitive sealed bidding;
b. Donation;
c. Recycling company;
d. Public auction;
e. 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
f. 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.
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.
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.
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 subsection 1-7-3(B) per Public Works Contract Change Order Act (50
ILCS 525/5.
2. All change orders are required to be approved by the city council should the original
contract amount be exceeded by ten thousand dollars ($10,000.00) regardless of the
original contract amount per Illinois Code 720 ILCS 5/33E-9.
J. SPENDING LIMITS:
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 of budgeted
materials, fixtures, equipment, services and supplies in an amount not to exceed $24,999.00
as may be deemed essential in the normal, day to day operations.
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:
The city council may debar a vendor, subcontractor, or supplier from bidding or
contracting with the City 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;
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(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 or more contracts
or subcontracts, including the hiring of subcontractors or suppliers debarred under
this subsection;
(2) A history of failure to perform one or more contracts or subcontracts;
(3) A history of unsatisfactory performance of one 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.
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 (3) 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.
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 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.
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.
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 subsection 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.
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