Avoid Surprises: Comply with Purchasing Mandates – Part II

Avoid Surprises: Comply with Purchasing Mandates – Part II Illinois Association of School Business Officials 60th Annual Conference May 19, 2010Respicio F. Vazquez Scott R. Metcalf rfv@franczek.com srm@franczek.com 312.786.6134 312.786.6104 www.franczek.com

Recent Legislation – Public Acts • Public Act 96-1197 (July 22, 2010) • Bidding for Energy Conservation Measures • Public Act 96-392 (January 1, 2010) • Exception to Bidding Requirement for Special Education Transportation • Public Act 96-437 (January 1, 2010) • Notifying Contractors of Prevailing Wage Requirements

Recent Legislation – Pending Bills • HB 3237 • Filing of Certified Payrolls Under the Prevailing Wage Act • HB 2407 • Itemization of Subcontracts • HB 1869 • Posting Public Notices on District’s Website

Overview of the Law – Prevailing Wage Act 820 ILCS 130/1 • Not less than the general prevailing rate of hourly wages for work of a similar character on public works in the locality in which the work is performed, and not less than the general prevailing rate of hourly wages for legal holiday and overtime work, shall be paid to all laborers, workers and mechanics employed by or on behalf of any public body engaged in the construction or demolition of public works. This includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented. • School Districts must request and retain certified payroll reports from contractors performing public work projects.

Hypothetical #1 – Prevailing Wage Act The School District is seeking bids for custodial maintenance work from a third party contractor. In addition to normal maintenance work, its school buildings are all more than 30 years old and need substantial upkeep and maintenance. Which of the following jobs that the custodians regularly do might be subject to the Prevailing Wage Act? • Patching nail holes • Painting walls • Removing carpet • Repairing door frames • Mowing lawns / landscaping • Moving furniture • Seal Coating

Hypothetical #2 – Prevailing Wage Act The School District issues a bid for a minor construction project costing $10,000, but forgets to include notice that the contractor will have to pay its workers on the project the prevailing wage. • Is this important? • Does the District need to correct this oversight? If so, how?

Hypothetical #3 – Prevailing Wage Act A newspaper makes a FOIA request for the certified payrolls of employees that worked on these projects. The School District cannot find any certified payrolls. • What should the School District do?

Hypothetical #4 – Illinois Procurement Code The School District puts out a bid for repairs and improvements to one of its buildings. After the contract is awarded, but before work begins, one of the unsuccessful bidders contacts the District. The unsuccessful bidder informs the District that the contract violates the Illinois Procurement Code because the successful bidder does not participate in an apprenticeship and training program. • Is this something the School District should be concerned about?

Hypothetical #5 – Mechanics Liens One month after completing its work on the construction of a new elementary school, a subcontractor provides a notice of a lien claim to the you. You were in charge of administering the construction contract. • What should you do with the notice?

Hypothetical #6 – Mechanics Liens Five months after the construction of the project is completed, a notice of a lien claim is sent to the President of the Board of Education. The President of the Board of Education delivers it to the business office secretary. • What should you do with the notice?

Hypothetical #7 – Mechanics Liens Two months after filing its notice of lien, the first subcontractor files a Mechanics Lien lawsuit in Circuit Court. Four months after filing its notice of lien, the second subcontractor also files a Mechanics Lien lawsuit in Circuit Court. • Will the mechanics lien be valid?

Hypothetical # 8 – Municipal Relations During several meetings with village officials, it is suggested that Village School District should switch its waste hauling contract to the village’s contractor. Many representations are made about the service. Suggestions are also made about how to make sure that the village’s contractor wins the contract. • What should the School District do?

Hypothetical #9 – Municipal Relations The School District is undertaking a construction project in which it will be building an addition to one of its schools and installing a billboard outside of that school. A municipal official contacts the District and asserts that the plans are subject to municipal building and zoning ordinances. • Can the municipality force the School District to comply with its building ordinance? • Can the municipality force the School District to comply with its zoning ordinance?

Hypothetical #10 – Municipal Relations The School District is approached by a cell phone company that wants to construct a cell tower on the District’s property. • Is the construction project subject to municipal oversight?

Questions & Comments Questions & Comments Respicio F. Vazquez rfv@franczek.com 312.786.6134 Scott R. Metcalf srm@franczek.com 312.786.6104

Avoid Surprises: Comply with Purchasing Mandates – Part II