cover
TO: Mayor Richard C. Irvin
FROM: Jessica L. Kalal, Assistant Corporation Counsel
DATE: February 21, 2020
SUBJECT:
An ordinance amending Chapter 2, Article V, Division 5 of the City Code titled "Local Preference in Contracts."
PURPOSE:
To revise the Local Preference in Contracts ordinance to provide a preference for local businesses in the amount of 5% for contracts between $25,000.00 and $1,999,000.00, by allowing the lowest responsive local bidder who is within the designated percentage of the lowest responsible bid, if from a nonlocal business, to price match the lowest bid in order to be recommended for City Council approval. The revisions also confer authority on the City Treasurer to adopt rules and regulations to implement the ordinance.
BACKGROUND:
The proposed revisions are intended to stimulate interest in the local business community to submit bids for City projects, while at the same time ensuring that the City is not impacted financially by allowing local businesses the opportunity to price match in accordance with the terms of the ordinance
DISCUSSION:
The proposed revisions benefit both local business and the City by including an opportunity for the local businesses to price match the lowest responsible bid if received from a nonlocal business. The revisions also ensure that the City is not financially impacted by requiring the local business to price match the bid that would have otherwise been recommended for City Council approval
IMPACT STATEMENT:
The proposed revisions will have a positive impact on local businesses, as they will be given an incentive to bid on City projects. The impact on the City is also positive as the price match provision protects the financial interests of the City.
RECOMMENDATIONS:
That the Ordinance be approved.
cc: Rules, Administration, and Procedure Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance amending Chapter 2, Article V, Division 5 of the City Code of the City of Aurora titled "Local Preference in Contracts."
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City wishes to amend Chapter 2, Article V, Division 5-of the code of the City of Aurora ("City Code") to provide a designated percentage of preference for local businesses, as well as allow local businesses the opportunity to price match the lowest responsible bid if received by a nonlocal business order to be recommended for City Council approval; and
WHEREAS, the revised ordinance will authorize the City Treasurer to adopt rules and regulations to implement the ordinance.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: Chapter 2, Article V, Division 5 of the City Code of the City of Aurora shall be and hereby amended as set forth on Exhibit A attached to this Ordinance.