SV must amend responsible bidder ordinance

E-mail this story

Print this story

Share

SPRING VALLEY – Spring Valley has jumped another hurdle in its efforts to receive federal stimulus funds for three city projects, but the next hurdle will require the city to amend one of its ordinances.

At Monday’s city council meeting, former City Engineer Larry Good told the aldermen he had just received a copy of the project summary. The facility plans and project plans of the three projects were reviewed and had been tentatively approved by the Illinois Environmental Protection Agency.

The city is hoping for $4.5 million in federal stimulus funds to separate the city’s combined sewer and stormwater, replace the Ladd Road sewer, and do work on the water main work in the southeast part of town. If the city receives the funds, they will be received as a 25 percent grant and a 75 percent loan, offered at 0 percent interest with a payoff period of 20 years.

Good said the plans needed to be available for public review for 10 days.

Once public notice period is over and there have been no negative responses, he said the plans would be approved.

“We will have accomplished one of several milestones that are necessary before being able to receive any federal funding,” he said.

However, there is one problem that needs to be eliminated before that milestone can be reached. While having conversations with IEPA officials, Good said he was told that while reviewing the specifications the officials saw the city’s requirement for complying with the responsible bidder requirement.

“They indicated that that ordinance contains what they called anti-competitive clauses that would not be allowed to be used,” he said.

Good said the responsible bidder ordinance requires various conditions be met, and the IEPA has indicated by their loan rules that that ordinance violates their prohibition of non-competitive.

“The loan rules do not allow for non-competitive restrictions in the procurement of construction contracts, so they’ve indicated the city will not be able to use its responsible bidder ordinance as it stands and use their financing,” he said.

Good said the city passed the responsible bidder ordinance sometime around 2000. Over the years, the courts interpreting Illinois law have broadly defined a responsible bidder as one who is financially responsible, has the ability to perform the contract obligations, and would serve the public interest if awarded the contract.

In addition, the Illinois Procurement Code requires the bidder and all bidder’s subcontractors to participate in applicable apprenticeship and training programs approved by and registered with the U.S. Department of Labor’s Bureau of Apprenticeship and Training, and Good said he presumed it was that section that was causing the difficulties.

Good said the city could pass on the funding, exclude the responsible bidder requirement, or argue with the state.

“The last option, I fear, would delay things,” Good said..

Good said another client of his had passed an ordinance waiving the responsible bidder requirement.

The city chose to waive the requirement, and Good agreed to send the specific information to City Attorney Tom Tonozzi to draft the ordinance to provide a waiver or an exclusion from that ordinance in this specific instance.

Comment on this story at www.bcrnews.com.