Bill Text: IL HB1602 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Reinserts the provisions of the introduced bill with the following changes. Adds specific requirements for construction contracts that the sanitary district reasonably expects to be in excess of $60,000 but not in excess of $100,000, which may be made in the open market without publication in a newspaper, but, when practical, shall be based on at least 3 competitive bids. Specifies information that the bids must contain. Allows a sanitary district to enter into an intergovernmental agreement with a unit of local government for non-emergency construction, alteration, repair, improvement, or maintenance work on the public way in an amount no greater than $300,000 (in the introduced bill, $500,000) to save taxpayer funds and eliminate duplication of government effort. Allows contracts to be entered into without competitive bidding for contracts greater than $100,000 to less than $300,000 (in the introduced bill, $500,000) if the board of trustees declares that an emergency exists affecting the public health or safety. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB1602 Detail]

Download: Illinois-2023-HB1602-Engrossed.html

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HB1602 Engrossed LRB103 03462 AWJ 48468 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Sanitary District Act of 1917 is amended by
changing Section 11 as follows:
(70 ILCS 2405/11) (from Ch. 42, par. 310)
Sec. 11. Except as otherwise hereinafter provided, all
contracts for purchases or sales by a sanitary district
organized under this Act, the expense of which will exceed the
mandatory competitive bid threshold, shall be let to the
lowest responsible bidder therefor upon not less than 14 days'
public notice of the terms and conditions upon which the
contract is to be let, having been given by publication in a
newspaper of general circulation published in the district,
and the board may reject any and all bids, and readvertise. In
determining the lowest responsible bidder, the board shall
take into consideration the qualities and serviceability of
the articles supplied, their conformity with specifications,
their suitability to the requirements of the district, the
availability of support services, the uniqueness of the
service, materials, equipment, or supplies as it applies to
network integrated computer systems, the compatibility of the
service, materials, equipment or supplies with existing

HB1602 Engrossed - 2 - LRB103 03462 AWJ 48468 b
equipment, and the delivery terms. Contracts for services in
excess of the mandatory competitive bid threshold may, subject
to the provisions of this Section, be let by competitive
bidding at the discretion of the district board of trustees.
Cash, a cashier's check, a certified check, or a bid bond
with adequate surety approved by the board of trustees as a
deposit of good faith, in a reasonable amount, but not in
excess of 10% of the contract amount, may be required of each
bidder by the district on all bids involving amounts in excess
of the mandatory competitive bid threshold and, if so
required, the advertisement for bids shall so specify.
Except for certain construction contracts as otherwise
provided by this Section, all All contracts for purchases or
sales that will not exceed the mandatory competitive bid
threshold may be made in the open market without publication
in a newspaper as above provided, but whenever practical shall
be based on at least 3 competitive bids. For purposes of this
Section, the "mandatory competitive bid threshold" is a dollar
amount equal to 0.1% of the total general fixed assets of the
district as reported in the most recent required audit report.
In no event, however, shall the mandatory competitive bid
threshold dollar amount be less than $25,000 $10,000, nor more
than $100,000 $40,000.
Notwithstanding this Section, all construction contracts
that the sanitary district reasonably expects to be in excess
of $60,000 but not in excess of $100,000 may be made in the

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open market without publication in a newspaper as otherwise
provided in this Section, but, when practical, shall be based
on at least 3 competitive bids that shall: (i) identify the
scope of work; (ii) provide the same scope of work, cost
estimates, and time for response to all contacted businesses;
(iii) consider registered Illinois small businesses, business
enterprises, including female-owned enterprises,
minority-owned enterprises, and enterprises owned by persons
with a disability, and veteran-owned firms; and (iv) attempt
to avoid repetitive use of the same prime contractor in the
same calendar year unless the same contractor is the lowest
responsible bidder. When applicable, the bids must comply with
the Prevailing Wage Act.
If a unit of local government performs non-emergency
construction, alteration, repair, improvement, or maintenance
work on the public way, the sanitary district may enter into an
intergovernmental agreement with the unit of local government
allowing similar construction work to be performed by the
sanitary district on the same project, in an amount no greater
than $300,000 $100,000, to save taxpayer funds and eliminate
duplication of government effort. The sanitary district and
the other unit of local government shall, before work is
performed by either unit of local government on a project,
adopt a resolution by a majority vote of both governing bodies
certifying work will occur at a specific location, the reasons
why both units of local government require work to be

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performed in the same location, and the projected cost savings
if work is performed by both units of local government on the
same project. Officials or employees of the sanitary district
may, if authorized by resolution, purchase in the open market
any supplies, materials, equipment, or services for use within
the project in an amount no greater than $300,000 $100,000
without advertisement or without filing a requisition or
estimate. A full written account of each project performed by
the sanitary district and a requisition for the materials,
supplies, equipment, and services used by the sanitary
district required to complete the project must be submitted by
the officials or employees authorized to make purchases to the
board of trustees of the sanitary district no later than 30
days after purchase. The full written account must be
available for public inspection for at least one year after
expenditures are made.
Contracts which by their nature are not adapted to award
by competitive bidding, including, without limitation,
contracts for the services of individuals, groups or firms
possessing a high degree of professional skill where the
ability or fitness of the individual or organization plays an
important part, contracts for financial management services
undertaken pursuant to "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943,
as now or hereafter amended, contracts for the purchase or
sale of utilities, contracts for materials economically

HB1602 Engrossed - 5 - LRB103 03462 AWJ 48468 b
procurable only from a single source of supply, contracts for
the use, purchase, delivery, movement, or installation of data
processing equipment, software, or services and
telecommunications and interconnect equipment, software, or
services, contracts for duplicating machines and supplies,
contracts for goods or services procured from another
governmental agency, purchases of equipment previously owned
by an entity other than the district itself, and leases of real
property where the sanitary district is the lessee shall not
be subject to the competitive bidding requirements of this
Section.
The competitive bidding requirements of this Section do
not apply to contracts for construction of a facility or
structure for the sanitary district when the facility or
structure will be designed, built, and tested before being
conveyed to the sanitary district.
The competitive bidding requirements of this Section do
not apply to contracts, including contracts for both materials
and services incidental thereto, for the repair or replacement
of a sanitary district's treatment plant, sewers, equipment,
or facilities damaged or destroyed as the result of a sudden or
unexpected occurrence, including, but not limited to, a flood,
fire, tornado, earthquake, storm, or other natural or man-made
disaster, if the board of trustees determines in writing that
the awarding of those contracts without competitive bidding is
reasonably necessary for the sanitary district to maintain

HB1602 Engrossed - 6 - LRB103 03462 AWJ 48468 b
compliance with a permit issued under the National Pollution
Discharge Elimination System (NPDES) or any successor system
or with any outstanding order relating to that compliance
issued by the United States Environmental Protection Agency,
the Illinois Environmental Protection Agency, or the Illinois
Pollution Control Board. The authority to issue contracts
without competitive bidding pursuant to this paragraph expires
6 months after the date of the writing determining that the
awarding of contracts without competitive bidding is
reasonably necessary.
Where the board of trustees declares, by a 2/3 vote of all
members of the board, that there exists an emergency affecting
the public health or safety, contracts totaling not more than
the emergency contract cap may be let to the extent necessary
to resolve such emergency without public advertisement or
competitive bidding. For purposes of this Section, the
"emergency contract cap" is a dollar amount equal to 0.4% of
the total general fixed assets of the district as reported in
the most recent required audit report. In no event, however,
shall the emergency contract cap dollar amount be less than
$100,000 $40,000, nor more than $300,000 $100,000. The
ordinance or resolution embodying the emergency declaration
shall contain the date upon which such emergency will
terminate. The board of trustees may extend the termination
date if in its judgment the circumstances so require. A full
written account of the emergency, together with a requisition

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for the materials, supplies, labor or equipment required
therefor shall be submitted immediately upon completion and
shall be open to public inspection for a period of at least one
year subsequent to the date of such emergency purchase. Within
30 days after the passage of the resolution or ordinance
declaring an emergency affecting the public health or safety,
the District shall submit to the Illinois Environmental
Protection Agency the full written account of any such
emergency along with a copy of the resolution or ordinance
declaring the emergency, in accordance with requirements as
may be provided by rule.
A contract for any work or other public improvement, to be
paid for in whole or in part by special assessment or special
taxation, shall be entered into and the performance thereof
controlled by Division 2 of Article 9 of the "Illinois
Municipal Code", approved May 29, 1961, as heretofore and
hereafter amended, as near as may be. The contracts may be let
for making proper and suitable connections between the mains
and outlets of the respective sewers in the district with any
conduit, conduits, main pipe or pipes that may be constructed
by such sanitary district.
(Source: P.A. 100-882, eff. 8-14-18.)