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R-1473 - 06/09/2015 - BOARD - Resolutions Supporting Documents ITEM 3.A.2) oA k 45,9 C/) C 't, o 10 9 K � �t �F c© J� \�, AGENDA ITEM Regular Board of Trustees Meeting of June 9, 2015 SUBJECT: Governor's Turnaround Agenda- Support to Repeal the Prevailing Wage and Requirements for Project Labor Agreements FROM: Riccardo F, Ginex, Village Manager BUDGET SOURCE/BUDGET IMPACT: None RECOMMENDED MOTION: Motion to Approve Resolution - Resolution 2015-GL-BD- R-1473 A Resolution in Support of Local Control of Project Labor Costs in Relation to Prevailing Wage Law Background/llistory: The Governor has emphasized his desire to remove unfunded mandates on local government and provide greater local control, both by local governments and by voters, over how their governments operate, He has requested that each municipality adopt a resolution supporting his "Turnaround" agenda. The resolution on tonight's Board agenda specifically deals with repealing the present Prevailing Wage Law as we have to approve the Prevailing Wage Law annually. We will do so later in tonight's Consent Agenda. Repealing the Illinois Prevailing Wage Law and the requirements for Project Labor Agreements would allow local governments more control over construction and project costs. More than 280 unfunded mandates have been imposed in recent years on communities across Illinois, costing those communities billions, Rolling back mandates will create more flexibility in local government budgets. Recommendation: The Board adopts the resolution as presented. Last saved by rginex JAAgenda Items\Agenda Item -Prevaling wage Resolution 6-9-15,doex �} RESOLUTION 2015-GL-BD-R-1473 A RESOLUTION IN SUPPORT OF LOCAL CONTROL OF PROJECT LABOR COSTS IN RELATION TO THE PREVAILING WAGE LAW WHEREAS, Illinois State law currently dictates labor pricing for construction projects in the name of "Prevailing Wage" determinations made by a centralized State panel of appointees, directly forcing added costs to each Oak Brook Public Works infrastructure project, which reduces funds available for any other purpose. WHEREAS, in our free market economy, prices and wages are set by the meeting of supply and demand and when dealing with government purchases, the freedom of our citizens to bid their own prices should be respected, and not outlawed by arbitrary wage rates decreed by political appointees that set artificial levels regardless of market conditions. WHEREAS, repealing the Illinois Prevailing Wage Law would allow local governments more control over construction and project costs, preventing the over-billing of labor costs that currently adds at least 20% to such costs above the true market labor rates in our relevant market area. WHEREAS, the lowest responsible bidder for any Oak Brook public construction projects should be allowed to determine the level of wages "prevailing" in Oak Brook, just as that same competitive bidding process allows independent bidders to determine the level of wages for private projects in Oak Brook, and for public projects not included in "construction services." WHEREAS, the Village of Oak Brook is not aware of any evidence that private contractors on private commercial projects in Oak Brook are paying below-market wages to their employees. WHEREAS, according to the Illinois Governor's office, rolling back the "Prevailing Wage" dictation of public sector construction wages will create more flexibility in local government budgets, and more accountability for spending decisions squarely at the local government level closest to the voters who must pay for it. WHEREAS, due to the fiscal emergency facing the State of Illinois, State sources of revenue for Oak Brook are facing reductions or in some cases cancellations of past funding, showing that the same State government that forces up our construction costs, cannot even pay its own bills. NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Oak Brook, DuPage and Counties, Illinois, as follows: Section 1: The foregoing recitals are hereby incorporated into, and made a part of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: The President and Board of Trustees for the Village of Oak Brook hereby endorse major reforms in State government that will encourage Oak Brook to pay market rates—and not falsely inflated politically dictated higher rates—for labor on public works projects, to enhance local control, reduce costs, empower local voters, increase competiveness in our community, and preserve funds for alternative, pressing budgetary needs. Resolution 2015-GL-BD-R-1473 Resolution in Support of Local Control of Project Labor Costs Page 2 of 2 Section 3. The Village President and Village Clerk hereby authorize the Village Manager to send a suitable copy of this Resolution to the Village's local State senators and representatives and the Illinois Governor. Section 4. All resolutions or parts of resolutions in conflict with this Resolution are hereby repealed to the extent of the conflict. Section 5. This Resolution shall be in full force and effect from and after its passage, approval and publication as required by law. APPROVED THIS 9th day of June, 2015. Gopal G. Lalmalani Village President PASSED THIS 9th day of June, 2015. Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk