103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1602 Introduced 1/31/2023, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: 70 ILCS 2405/11 from Ch. 42, par. 310 Amends the Sanitary District Act of 1917. Increases the mandatory competitive bid threshold to not less than $25,000 or more than $100,000 (currently, not less than $10,000 or more than $40,000). 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 $500,000 (currently, $100,000) to save taxpayer funds and eliminate duplication of government effort. Makes conforming changes. Allows contracts to be entered into in without competitive bidding for contracts greater than $100,000 to less than $500,000 (currently, $40,000 to $100,000) if the board of trustees declares that an emergency exists affecting the public health or safety. Effective immediately. LRB103 03462 AWJ 48468 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1602 Introduced 1/31/2023, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: 70 ILCS 2405/11 from Ch. 42, par. 310 70 ILCS 2405/11 from Ch. 42, par. 310 Amends the Sanitary District Act of 1917. Increases the mandatory competitive bid threshold to not less than $25,000 or more than $100,000 (currently, not less than $10,000 or more than $40,000). 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 $500,000 (currently, $100,000) to save taxpayer funds and eliminate duplication of government effort. Makes conforming changes. Allows contracts to be entered into in without competitive bidding for contracts greater than $100,000 to less than $500,000 (currently, $40,000 to $100,000) if the board of trustees declares that an emergency exists affecting the public health or safety. Effective immediately. LRB103 03462 AWJ 48468 b LRB103 03462 AWJ 48468 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1602 Introduced 1/31/2023, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: 70 ILCS 2405/11 from Ch. 42, par. 310 70 ILCS 2405/11 from Ch. 42, par. 310 70 ILCS 2405/11 from Ch. 42, par. 310 Amends the Sanitary District Act of 1917. Increases the mandatory competitive bid threshold to not less than $25,000 or more than $100,000 (currently, not less than $10,000 or more than $40,000). 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 $500,000 (currently, $100,000) to save taxpayer funds and eliminate duplication of government effort. Makes conforming changes. Allows contracts to be entered into in without competitive bidding for contracts greater than $100,000 to less than $500,000 (currently, $40,000 to $100,000) if the board of trustees declares that an emergency exists affecting the public health or safety. Effective immediately. LRB103 03462 AWJ 48468 b LRB103 03462 AWJ 48468 b LRB103 03462 AWJ 48468 b A BILL FOR HB1602LRB103 03462 AWJ 48468 b HB1602 LRB103 03462 AWJ 48468 b HB1602 LRB103 03462 AWJ 48468 b 1 AN ACT concerning local government. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Sanitary District Act of 1917 is amended by 5 changing Section 11 as follows: 6 (70 ILCS 2405/11) (from Ch. 42, par. 310) 7 Sec. 11. Except as otherwise hereinafter provided, all 8 contracts for purchases or sales by a sanitary district 9 organized under this Act, the expense of which will exceed the 10 mandatory competitive bid threshold, shall be let to the 11 lowest responsible bidder therefor upon not less than 14 days' 12 public notice of the terms and conditions upon which the 13 contract is to be let, having been given by publication in a 14 newspaper of general circulation published in the district, 15 and the board may reject any and all bids, and readvertise. In 16 determining the lowest responsible bidder, the board shall 17 take into consideration the qualities and serviceability of 18 the articles supplied, their conformity with specifications, 19 their suitability to the requirements of the district, the 20 availability of support services, the uniqueness of the 21 service, materials, equipment, or supplies as it applies to 22 network integrated computer systems, the compatibility of the 23 service, materials, equipment or supplies with existing 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1602 Introduced 1/31/2023, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: 70 ILCS 2405/11 from Ch. 42, par. 310 70 ILCS 2405/11 from Ch. 42, par. 310 70 ILCS 2405/11 from Ch. 42, par. 310 Amends the Sanitary District Act of 1917. Increases the mandatory competitive bid threshold to not less than $25,000 or more than $100,000 (currently, not less than $10,000 or more than $40,000). 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 $500,000 (currently, $100,000) to save taxpayer funds and eliminate duplication of government effort. Makes conforming changes. Allows contracts to be entered into in without competitive bidding for contracts greater than $100,000 to less than $500,000 (currently, $40,000 to $100,000) if the board of trustees declares that an emergency exists affecting the public health or safety. Effective immediately. LRB103 03462 AWJ 48468 b LRB103 03462 AWJ 48468 b LRB103 03462 AWJ 48468 b A BILL FOR 70 ILCS 2405/11 from Ch. 42, par. 310 LRB103 03462 AWJ 48468 b HB1602 LRB103 03462 AWJ 48468 b HB1602- 2 -LRB103 03462 AWJ 48468 b HB1602 - 2 - LRB103 03462 AWJ 48468 b HB1602 - 2 - LRB103 03462 AWJ 48468 b 1 equipment, and the delivery terms. Contracts for services in 2 excess of the mandatory competitive bid threshold may, subject 3 to the provisions of this Section, be let by competitive 4 bidding at the discretion of the district board of trustees. 5 Cash, a cashier's check, a certified check, or a bid bond 6 with adequate surety approved by the board of trustees as a 7 deposit of good faith, in a reasonable amount, but not in 8 excess of 10% of the contract amount, may be required of each 9 bidder by the district on all bids involving amounts in excess 10 of the mandatory competitive bid threshold and, if so 11 required, the advertisement for bids shall so specify. 12 All contracts for purchases or sales that will not exceed 13 the mandatory competitive bid threshold may be made in the 14 open market without publication in a newspaper as above 15 provided, but whenever practical shall be based on at least 3 16 competitive bids. For purposes of this Section, the "mandatory 17 competitive bid threshold" is a dollar amount equal to 0.1% of 18 the total general fixed assets of the district as reported in 19 the most recent required audit report. In no event, however, 20 shall the mandatory competitive bid threshold dollar amount be 21 less than $25,000 or $10,000, nor more than $100,000 $40,000. 22 If a unit of local government performs non-emergency 23 construction, alteration, repair, improvement, or maintenance 24 work on the public way, the sanitary district may enter into an 25 intergovernmental agreement with the unit of local government 26 allowing similar construction work to be performed by the HB1602 - 2 - LRB103 03462 AWJ 48468 b HB1602- 3 -LRB103 03462 AWJ 48468 b HB1602 - 3 - LRB103 03462 AWJ 48468 b HB1602 - 3 - LRB103 03462 AWJ 48468 b 1 sanitary district on the same project, in an amount no greater 2 than $500,000 $100,000, to save taxpayer funds and eliminate 3 duplication of government effort. The sanitary district and 4 the other unit of local government shall, before work is 5 performed by either unit of local government on a project, 6 adopt a resolution by a majority vote of both governing bodies 7 certifying work will occur at a specific location, the reasons 8 why both units of local government require work to be 9 performed in the same location, and the projected cost savings 10 if work is performed by both units of local government on the 11 same project. Officials or employees of the sanitary district 12 may, if authorized by resolution, purchase in the open market 13 any supplies, materials, equipment, or services for use within 14 the project in an amount no greater than $500,000 $100,000 15 without advertisement or without filing a requisition or 16 estimate. A full written account of each project performed by 17 the sanitary district and a requisition for the materials, 18 supplies, equipment, and services used by the sanitary 19 district required to complete the project must be submitted by 20 the officials or employees authorized to make purchases to the 21 board of trustees of the sanitary district no later than 30 22 days after purchase. The full written account must be 23 available for public inspection for at least one year after 24 expenditures are made. 25 Contracts which by their nature are not adapted to award 26 by competitive bidding, including, without limitation, HB1602 - 3 - LRB103 03462 AWJ 48468 b HB1602- 4 -LRB103 03462 AWJ 48468 b HB1602 - 4 - LRB103 03462 AWJ 48468 b HB1602 - 4 - LRB103 03462 AWJ 48468 b 1 contracts for the services of individuals, groups or firms 2 possessing a high degree of professional skill where the 3 ability or fitness of the individual or organization plays an 4 important part, contracts for financial management services 5 undertaken pursuant to "An Act relating to certain investments 6 of public funds by public agencies", approved July 23, 1943, 7 as now or hereafter amended, contracts for the purchase or 8 sale of utilities, contracts for materials economically 9 procurable only from a single source of supply, contracts for 10 the use, purchase, delivery, movement, or installation of data 11 processing equipment, software, or services and 12 telecommunications and interconnect equipment, software, or 13 services, contracts for duplicating machines and supplies, 14 contracts for goods or services procured from another 15 governmental agency, purchases of equipment previously owned 16 by an entity other than the district itself, and leases of real 17 property where the sanitary district is the lessee shall not 18 be subject to the competitive bidding requirements of this 19 Section. 20 The competitive bidding requirements of this Section do 21 not apply to contracts for construction of a facility or 22 structure for the sanitary district when the facility or 23 structure will be designed, built, and tested before being 24 conveyed to the sanitary district. 25 The competitive bidding requirements of this Section do 26 not apply to contracts, including contracts for both materials HB1602 - 4 - LRB103 03462 AWJ 48468 b HB1602- 5 -LRB103 03462 AWJ 48468 b HB1602 - 5 - LRB103 03462 AWJ 48468 b HB1602 - 5 - LRB103 03462 AWJ 48468 b 1 and services incidental thereto, for the repair or replacement 2 of a sanitary district's treatment plant, sewers, equipment, 3 or facilities damaged or destroyed as the result of a sudden or 4 unexpected occurrence, including, but not limited to, a flood, 5 fire, tornado, earthquake, storm, or other natural or man-made 6 disaster, if the board of trustees determines in writing that 7 the awarding of those contracts without competitive bidding is 8 reasonably necessary for the sanitary district to maintain 9 compliance with a permit issued under the National Pollution 10 Discharge Elimination System (NPDES) or any successor system 11 or with any outstanding order relating to that compliance 12 issued by the United States Environmental Protection Agency, 13 the Illinois Environmental Protection Agency, or the Illinois 14 Pollution Control Board. The authority to issue contracts 15 without competitive bidding pursuant to this paragraph expires 16 6 months after the date of the writing determining that the 17 awarding of contracts without competitive bidding is 18 reasonably necessary. 19 Where the board of trustees declares, by a 2/3 vote of all 20 members of the board, that there exists an emergency affecting 21 the public health or safety, contracts totaling not more than 22 the emergency contract cap may be let to the extent necessary 23 to resolve such emergency without public advertisement or 24 competitive bidding. For purposes of this Section, the 25 "emergency contract cap" is a dollar amount equal to 0.4% of 26 the total general fixed assets of the district as reported in HB1602 - 5 - LRB103 03462 AWJ 48468 b HB1602- 6 -LRB103 03462 AWJ 48468 b HB1602 - 6 - LRB103 03462 AWJ 48468 b HB1602 - 6 - LRB103 03462 AWJ 48468 b 1 the most recent required audit report. In no event, however, 2 shall the emergency contract cap dollar amount be less than 3 $100,000 or $40,000, nor more than $500,000 $100,000. The 4 ordinance or resolution embodying the emergency declaration 5 shall contain the date upon which such emergency will 6 terminate. The board of trustees may extend the termination 7 date if in its judgment the circumstances so require. A full 8 written account of the emergency, together with a requisition 9 for the materials, supplies, labor or equipment required 10 therefor shall be submitted immediately upon completion and 11 shall be open to public inspection for a period of at least one 12 year subsequent to the date of such emergency purchase. Within 13 30 days after the passage of the resolution or ordinance 14 declaring an emergency affecting the public health or safety, 15 the District shall submit to the Illinois Environmental 16 Protection Agency the full written account of any such 17 emergency along with a copy of the resolution or ordinance 18 declaring the emergency, in accordance with requirements as 19 may be provided by rule. 20 A contract for any work or other public improvement, to be 21 paid for in whole or in part by special assessment or special 22 taxation, shall be entered into and the performance thereof 23 controlled by Division 2 of Article 9 of the "Illinois 24 Municipal Code", approved May 29, 1961, as heretofore and 25 hereafter amended, as near as may be. The contracts may be let 26 for making proper and suitable connections between the mains HB1602 - 6 - LRB103 03462 AWJ 48468 b HB1602- 7 -LRB103 03462 AWJ 48468 b HB1602 - 7 - LRB103 03462 AWJ 48468 b HB1602 - 7 - LRB103 03462 AWJ 48468 b 1 and outlets of the respective sewers in the district with any 2 conduit, conduits, main pipe or pipes that may be constructed 3 by such sanitary district. 4 (Source: P.A. 100-882, eff. 8-14-18.) 5 Section 99. Effective date. This Act takes effect upon 6 becoming law. HB1602 - 7 - LRB103 03462 AWJ 48468 b