Loading...
HomeMy WebLinkAboutOrdinance 1-O-26 Amending Title 1, Chapter 17, Contracts with the City (1) (1) 2/9/2026 1-O-26 AN ORDINANCE Amending Title 1, Chapter 17, “Contracts with the City” WHEREAS, the City of Evanston is a unit of local government organized and operating under federal and state laws; and WHEREAS, on May 27, 2025, the City of Evanston adopted the Responsible Bidder Ordinance to ensure that only qualified contractors and subcontractors are awarded contracts on public works construction projects, and to ensure that workers on public works construction projects are paid appropriate wages and receive appropriate benefits in accordance with state and federal law; and WHEREAS, from time to time the City of Evanston is able to secure external sources of funding, for instance from federal or state grants, that impose distinct sets of requirements for grant eligibility that do not always dovetail with the requirements of the current City Code; and WHEREAS, the City of Evanston wishes to amend its ordinance on Contracts with the City to clarify how it intersects with external funding conditions; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: Title 1, Chapter 17, “Contracts with the City,” is hereby amended as follows: (A) All contracts with the City costing in excess of twenty-five thousand dollars ($25,000.00) must be approved by the City Council. Contracts for the purchase of goods or services to be utilized in the conduct of the affairs of the City, shall be let by the City Manager or his/her designee, with the approval of the City Council, to a reliable, responsible and acceptable bidder, after advertising for the same, and bonds to be approved by the City Council may be taken for the faithful performance thereof. Page 1 of 11 (B) All contracts for the purchase of goods or services with entirely City funds shall be awarded to the lowest quote/bid price or lowest evaluated quote/bid price from a responsive and responsible Evanston business enterprise ("EBE") provided the EBE's quote/bid price does not surpass the lowest quote/bid price or lowest evaluated quote/bid price from a responsive and responsible nonlocal business by more than five percent (5%). All contracts let from requests for proposals (RFPs) and requests for qualifications (RFQs) with entirely City funds shall be awarded to the most qualified consultant that is an EBE, provided the EBE price/cost does not surpass the lowest price/cost or lowest evaluated price/cost from a nonlocal business by more than five percent (5%). This requirement is waived if the contract is partially or completely funded from a source other than funds belonging to the City of Evanston, such as federal, state, or other grants, and (ii) the other funding source mandates terms that are inconsistent with or supersede this Section (B). 1. An "EBE" shall mean an entity which is located in or has one or more offices located in the City for a minimum of one year and which performs a "commercially useful function." a. An EBE performs a commercially useful function when it is responsible for execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. To perform a commercially useful function, the EBE must also be responsible, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable) and paying for the material itself. To determine whether an EBE is performing a commercially useful function, the City will evaluate the amount of work subcontracted, industry practices, whether the amount the firm is to be paid under the contract is commensurate with the work it is actually performing and the EBE credit claimed for its performance of the work and other relevant factors. b. An EBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of EBE participation. In determining whether an EBE is such an extra participant, the City will examine similar transactions, particularly those in which EBEs do not participate. c. If an EBE does not perform or exercise responsibility for at least thirty (30) percent of the total cost of its contract with its own work force, or the EBE subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of Page 2 of 11 work involved, then it is not performing a commercially useful function. d. When an EBE is presumed not to be performing a commercially useful function as provided in Subsection (B)1c of this Section, the EBE may present evidence to rebut this presumption. The City may determine that the firm is performing a commercially useful function given the type of work involved and normal industry practices. 2. In determining whether a business has been located in Evanston for one (1) year, the MWEBE Committee will consider the following: a. Whether the vendor pays property and/or sales taxes in Evanston; and b. Whether the business entity's address or the address given on the federal and/or state income tax return is within Evanston. c.The date of issuance of an Evanston business license. The City may waive the one-year requirement if the entity provides evidence of a substantial commitment to Evanston. 3. Businesses that maintain a distribution warehouse or which manufacture in Evanston will receive EBE credit of sixty (60) percent and one hundred (100) percent, respectively. Those that do not maintain a distribution warehouse or manufacturing operation but have an office in Evanston will be considered a broker and receive a five (5) percent credit. 4. Eligibility as an EBE will be periodically reviewed and may be revoked at any time if the entity no longer meets the above requirements. (E) Additional Requirements for Public Works Contracts. All bidders for public works contracts must comply with the below specifications in bid submission and during the project for a successful bidder. The City Council may, by a majority vote of the members present, waive any of these requirements for an Evanston-owned business enterprise as defined in Subsection 1-17-1(D)(1) or a nearby business enterprise as defined in Subsection 1-17-1(E)(1). 1.Definitions. For the purposes of this Subsection, the following definitions apply: Page 3 of 11 APPRENTICESHIP TRAINING PROGRAM. A program approved and registered by the United States Department of Labor's Office of Apprenticeship, or its successor organization, that has graduated at least five (5) apprentices in each other past five (5) years for each of the construction crafts the bidder will perform on the project. Evidence of graduation rates are not required for apprentice able crafts dedicated exclusively to the transportation of material and equipment to and from the public works project. BIDDER. A contractor that submits a bid in response to a City of Evanston request for proposal. COMMERCIALLY USEFUL FUNCTION. A business enterprise that is responsible for the execution of the work of the contract and is carrying out its responsibilities by actually performing, managing, and supervising the work involved. NEARBY BUSINESS ENTERPRISE ("NBE"). A business enterprise located within five (5) miles of Evanston City limits for a minimum of one (1) year and performs a commercially useful function. PUBLIC WORKS CONTRACT. Any construction, alteration, demolition, or repair work done under contract on City-owned property. RELIABLE, RESPONSIVE AND ACCEPTABLE A bidder who submits a bid that conforms in all material respects to the requirements and criteria in the invitation for bids. This means the bid promises to perform in the precise manner requested by the government, and any minor irregularities in the bid shall not defeat responsiveness. 2. Excessive Pass Through Prohibited. Any bidder must directly perform at least twenty-five (25) percent of the services identified in the project solicitation. The named bidder submitting the bid must be the entity directly performing the services. Any affiliates and/or subsidiaries shall not contribute to the minimum performance percentage required. 3. Apprenticeship Training Program Required. (a) Public Works contracts for over twenty-five thousand dollars ($25,000.00) or greater shall only be let to: (i) a contractor with evidence of participation in an Page 4 of 11 apprenticeship training program applicable to the work to be performed on the project; or (ii) a contractor who has satisfied the experience requirements under subsection (d). (b) All contracts submitted to the City Council must identify whether the contractor meets this requirement. (c) Required evidence of participation in an apprenticeship program includes but is not limited to a copy of all applicable apprenticeship standards and apprenticeship agreement(s) for any apprentice(s) who will perform work on the public works project; and documentation from each applicable apprenticeship program certifying that it has graduated at least five (5) apprentices in each of the past five (5) years for each construction craft the bidder will perform on the project. (d) Contractors may alternatively satisfy this requirement by certifying that all workers who will perform work on the public works project have relevant experience in lieu of participation in an apprenticeship program. Relevant experience may include: (i) performing at least one thousand eight hundred (1,800) hours of work in the trade the worker will perform on the public works project over the preceding two (2) years; (ii) completion of an apprenticeship program in the trade the worker will perform on the public works project; or (iii) obtaining a journeyman credential in the trade the worker will perform on the public works project. Required evidence to be eligible under this section includes but is not limited to W-2 records, journeyman credentials, apprenticeship completion cards, or certificates of graduation from apprenticeship programs. This requirement is waived if the contract is partially or completely funded from a source other than funds belonging to the City of Evanston, such as federal, state, or other grants, and (ii) the other funding source mandates terms that are inconsistent with or supersede this Section (E)(3)(d). (e) Additional evidence of apprenticeship participation, graduation requirements, or previous experience may be requested by the City of Evanston in its discretion. 4. Occupational Safety and Health Administration Safety Cards Required. Prior to beginning work for the City, the bidder shall certify that all employees for the contractor that will be on the work site shall have completed a ten-hour or greater OSHA safety program. The contractor must submit copies of the employees' OSHA cards to the City prior to the project commencing. 5. Nearby Business Enterprises. In the absence of an Evanston business enterprise as required by City Code 1-17-1(B), the City shall award the contract for the public works Page 5 of 11 contract to the lowest bid price or lowest evaluated quote/bid price from a responsive or responsible NBE, provided that the NBE's bid price does not surpass the lowest bid price or lowest evaluated bid price from a responsible and responsible non NBE or EBE business by more than three (3) percent. This requirement is waived if the contract is partially or completely funded from a source other than funds belonging to the City of Evanston, such as federal, state, or other grants, and (ii) the other funding source mandates terms that are inconsistent with or supersede this Section (E)(5). a.An NBE shall perform a commercially useful function. i. To determine whether an NBE is performing a commercially useful function, the City will evaluate the amount of work subcontracted, industry practices, whether the amount the firm is to be paid under the contract is commensurate with the work it is actually performing and the NBE credit claimed for its performance of the work and other relevant factors. ii. An NBE does not perform a commercially useful function if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of NBE participation. In determining whether an NBE is such an extra participant, the City will examine similar transactions, particularly those in which NBEs do not participate. iii. If an NBE does not perform or exercise responsibility for at least thirty (30) percent of the total cost of its contract with its own work force, or the NBE subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of work involved, then it is not performing a commercially useful function. iv. When an NBE is presumed not to be performing a commercially useful function as provided in Subsection (B)1c of this Section, the EBE may present evidence to rebut this presumption. The City may determine that the firm is performing a commercially useful function given the type of work involved and normal industry practices. b. In determining whether a business has been located in Evanston or within five (5) miles of Evanston City limits for one (1) year, the MWEBE Committee will consider the following: i. Whether the vendor pays property and/or sales taxes in Evanston, or, in the case of a NBE, in a community that is within five (5) miles of City limits; and Page 6 of 11 ii. Whether the business entity's address or the address given on the federal and/or state income tax return is within Evanston or, in the case of a NBE, in a community that is within five (5) miles of City limits; and iii. The date of issuance of an Evanston business license or, in the case of a NBE, the date of issuance of a business license by a community located within five (5) miles of City limits. iv. The City may waive the one-year requirement if the entity provides evidence of a substantial commitment to Evanston. c. Businesses that maintain a distribution warehouse or which manufacture in Evanston will receive EBE credit of sixty (60) percent and one hundred (100) percent, respectively. Those that do not maintain a distribution warehouse or manufacturing operation but have an office in Evanston will be considered a broker and receive a five (5) percent credit. d. Eligibility as an NBE will be periodically reviewed and may be revoked at any time if the entity no longer meets the above requirements. 6. Certifications Required at Time of Bid Submittal. All bidders, including any subcontractors included in the bid, as applicable, shall be compliant and shall submit certification of compliance with the following at the time of the bid submittal: a.The Prevailing Wage Act, 820 ILCS 130/1 et seq. i. Compliance with the Prevailing Wage Act is required for the previous five (5) years and certification that the contractor has not been found in violation of the Prevailing Wage Act by the Illinois Department of Labor; and ii. A contractor who has been found by the Illinois Department of Labor to be in violation of the Prevailing Wage Act twice in a five-year period shall be barred from bidding for a Public Works contract for four (4) years from the date of the most recent finding from the Illinois Department of Labor. b. The Substance Abuse Prevention on Public Works Project Act, 820 ILCS 265/1 et seq; i. Compliance with the Substance Abuse Prevention on Public Works Act must include a copy of its written program for the prevention of substance abuse pursuant to the Act. Page 7 of 11 c.The Workers' Compensation Act, 820 ILCS 305/1 et seq.; i. A copy of the applicable workers' compensation policy must be submitted to the City along with documentation of the Illinois Department of Labor registration. The bidder shall additionally certify that all employees are properly classified under the workers' compensation policy. d.The Unemployment Insurance Act, 820 ILCS 405/100, et seq.; i. .A copy of the applicable Illinois Department of Employment Security current registration. e. A copy of the Illinois Secretary of State's Department of Business Services online records evidencing that the bidder has a current corporate annual report on file. If the bidder is an individual, sole proprietor, or partnership, this subsection shall not apply; f. A copy of the current registration with the Illinois Department of Revenue, if the bidder has employees; g. A disclosure of any Federal, State or local tax liens or tax delinquencies against the bidder or any officers of the bidder in the last five (5) years; h.Reserved; i. h. Compliance with the Federal Davis-Bacon Act and Related Acts, if applicable; j. i. Compliance with the Employee Classification Act 820 ILCS 185/1, et seq.; i. All contractors and subcontractors shall submit certified payrolls as specified in Illinois Public Act 94-0515. k. j. All applicable professional or trade licensure, including documentation of said licenses, certification that all licenses are current, and disclosure of any suspension or revocation of such license held by the company, or of any director, officer or manager of the company; l. k. Certification of compliance with 720 ILCS 5/33E-11 and that the bidder is not barred from contracting with any unit of State or local government as a result of a violation of 720 ILCS 5/33E-3, 4; Page 8 of 11 m. l. Certification that all individuals who perform work on behalf of the contractor are properly classified as either (i) an employee, or (ii) an independent contractor under all applicable state and federal laws and local ordinances; and n. m. Disclosure of any determinations by a court, State or Federal agency of violations of any federal, state or local laws, including but not limited to OSHA, contracting or antitrust laws, tax or licensing laws, environmental laws or the Federal Davis-Bacon and Related Acts. Any bidder who fails to adhere to this Subsection shall be deemed disqualified from the bid process. If a bidder or contractor has a material change to the information provided to the City of Evanston, the bidder or contractor must notify the City within fourteen (14) days of this material change in writing. Failure to self-report a material change may result in disqualification from the bid. 7. Subcontractors. A bidder shall submit documentation including the name and address of each subcontractor from whom the bidder has accepted a bid and/or intends to hire on any part of the project. Further, each such subcontractor shall be required to adhere to the requirements set forth herein as though it were bidding directly to the City of Evanston. Each contractor shall submit all subcontractor information and supporting documentation to the City of Evanston prior to the subcontractor commencing work on the project. It shall be the responsibility of the bidder to ensure its subcontractors comply with all of the requirements of this Code, including the timely and complete submittals of all required documentation and full compliance with all obligations set forth in this Section. 8. Certification for 12-Month Period. In anticipation of bidding on a project, a contractor may submit the certifications identified in the preceding section to the City's Purchasing Manager or their designee. The Purchasing Manager or their designee shall review the certifications for completeness. Upon review, if the certifications are complete, the Purchasing Manager or their designee shall advise the contractor of same via an email address designated by the contractor. If the certifications are incomplete, the contractor shall be also notified via email and given fourteen (14) days to complete the submission. Once the certifications are completed, the contractor shall be notified of a "Certification for 12-Month Period" and shall not be required to resubmit these certifications for a period of twelve (12) months following the notification. Any material changes to these certifications shall be reported in writing to the City's Purchasing Manager or designee. In the event that these documents are still required to be submitted by a State or Federal agency that is contributing funding to a project, this provision shall not apply. 9. Projects of Similar Size and Scope. In projects in the amount of twenty-five Page 9 of 11 thousand dollars ($25,000.00) or greater, bidders shall identify and submit documentation with their bid of relevant experience on projects of similar size and scope in the past five (5) years and submit references for same. Projects of similar size and scope shall be as further defined and outlined in the request for proposal ("RFP"). The bidder shall also identify any civil judgments, mediation or arbitration awards against it for default, breach, or damages due to delay or work inadequately performed. Information submitted pursuant to this section shall be considered in determining responsible bidders for the project at issue. 10. Statement of Past Performance. Bidders shall submit with their bid a record of all work performed for public bodies completed in the prior three (3) years. Such statements shall include the name of the public body, the type of work performed, the original contract price, the final contract price, the names of all subcontractors used and if liquidated damages were assessed. 11. Public Records. All information submitted by a successful bidder pursuant to this Section are is subject to review pursuant to the Illinois Freedom of Information Act (5 ILCS 140/1 et seq.). SECTION 2: All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 3: If any provision of this Ordinance or application thereof to any person or circumstance is held unconstitutional or otherwise invalid, such invalidity shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid application or provision, and each invalid application of this Ordinance is severable. SECTION 4: This Ordinance shall be in full force and effect beginning upon passage. SECTION 5: The findings and recitals contained herein are declared to be prima facie evidence of the law of the City and shall be received in evidence as provided by the Illinois Compiled Statutes and the courts of the State of Illinois. Page 10 of 11 Introduced: _________________, 2026 Adopted: ___________________, 2026 Approved: __________________________, 2026 _______________________________ Daniel Biss, Mayor Attest: _______________________________ Stephanie Mendoza, City Clerk Approved as to form: ______________________________ Alexandra B. Ruggie, Corporation Counsel February 9 February 9 Page 11 of 11