Transcript Slide 1

Avoid Surprises: Comply with
Purchasing Mandates – Part II
Illinois Association of School Business Officials
60th Annual Conference
May 19, 2010
Respicio F. Vazquez
[email protected]
312.786.6134
Scott R. Metcalf
[email protected]
312.786.6104
www.franczek.com
Copyright © 2011, Franczek Radelet P.C. All Rights Reserved.
Disclaimer: Attorney Advertising. This presentation is a publication of Franczek Radelet P.C. This presentation is intended for general informational purposes only and should not be construed as legal advice.
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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
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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
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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.
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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?
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Patching nail holes
Painting walls
Removing carpet
Repairing door frames
Mowing lawns / landscaping
Moving furniture
Seal Coating
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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Questions & Comments
Questions & Comments
Respicio F. Vazquez
[email protected]
312.786.6134
Scott R. Metcalf
[email protected]
312.786.6104
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