PRIVATIZATION CONTRACTS (2-164-200 et seq.)

Municipal Code of Chicago tit. 2, ch. 2-164, art. II

in effect

Municipal Code of Chicago § 2-164-200 Definitions.

2-164-200 Definitions. Whenever used in this Article, the following words and phrases shall have the following meanings: "Affected Department" or "Department" means a City Department performing a Service that is subject to a Privatization Contract. "Contractor" means a person that enters into a Privatization Contract with the City. "Cost-effectiveness Study" or "Study" means an economic analysis performed by the Office for the purpose of comparing the fully allocated costs of providing the contracted service by the proposed Contractor and by City personnel, any analysis of the projected savings anticipated as a result of the contracting out, and such other considerations the Budget Director considers relevant. The analysis shall include in the projected cost of the proposed Contract any continuing City costs associated with the service, such as the costs of inspection, supervision and monitoring. "Laid off" shall have the meaning set forth in Article I of this Chapter. "Office" shall mean the City's Office of Budget and Management. "Post" shall have the meaning set forth in Article I of this Chapter. "Privatization Contract" or "Contract" means a contract between the City and a Contractor for the Contractor to take over the performance of any Service performed prior to the Contract by personnel employed by an Affected Department, in lieu of such personnel. The term "Privatization Contract" shall not include: (a) a contract whose maximum permitted expenditure over the life of the contract is less than $3,000,000. (b) a contract for services that in the judgment of the Budget Director, in consultation with the Affected Department, are of such a highly specialized or technical nature that the necessary expert knowledge, experience, and ability are not available in the City workforce, have not historically been performed by City employees, and it is not practicable to hire the needed personnel. (c) a contract for services that are incidental to the purchase or lease of real or personal property, including, but not limited to, agreements to service or maintain leased or rented office equipment or computers. (d) a contract under circumstances in which a private contractor is necessary to protect against a conflict of interest or to ensure independent and unbiased findings in circumstances where an outside perspective is clearly needed. (e) a contract under circumstances in which a private contractor can provide equipment, materials, facilities, or support services that cannot readily be provided by the City in the location where the service is to be performed. (f) a contract for services that are of an urgent, temporary, or occasional nature. (g) a sole source contract or intergovernmental agreement. (h) a contract under circumstances in which privatization is the result of the loss or diminution of federal or state grant funding in an amount sufficient to significantly affect the level or quality of the service, in the judgment of the Budget Director in consultation with the Affected Department, and the Affected Department has received ninety (90) or fewer days' notice from the grantor of the final notice of award. (i) a City service subject to a privatization that took effect prior to the effective date of this Article. (j) (1) a contract, purchase order or agreement for the demolition, construction, repair or improvement of any building, bridge, roadway, sidewalk, alley, railroad or other structure or infrastructure, awarded by any officer or agency of the City other than the City Council, and whose cost is to be paid from funds belonging to the City and any bonds, grants, loans, or other funds made available by or through the Federal government or the State or any of its political subdivisions, and (2) any associated services of a planning, architecture or engineering firm involved in the planning, design, feasibility study, or management of the project. "Service" means any City-provided function, operation or service, but shall not include any Asset, as that term is defined in Article I of this Chapter. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-210 Privatization contract requirements.

2-164-210 Privatization contract requirements. The awarding of a Privatization Contract is permissible when all of the following conditions are first met: (a) The Office shall prepare a Cost-effectiveness Study. Before finalizing the Study, the Office, together with the Affected Department, shall notify and consult with an individual representative duly designated by each affected collective bargaining unit(s) that has members employed in the Department. Those portions of the Study subject to public review pursuant to the Freedom of Information Act, as well as any information to which the collective bargaining representative is entitled pursuant to the Illinois Public Labor Relations Act, shall be made available to any such collective bargaining unit(s) upon written request. Any such unit(s) may, within ten (10) business days of receiving the Study, provide written comment or response, which may include a proposal to maintain the delivery of the Service(s) at issue by City employees, to the Office and the Affected Department. Those written comments or response, together with any assessment thereof by the Office, will be included with the Cost-effectiveness Study and provided to the City Council prior to a City Council vote on a proposed privatization. (b) The City Council Committee on the Budget and Government Operations holds one or more hearings on any proposed privatization and the associated Cost- effectiveness Study. (c) The City shall utilize a competitive process to award each Contract. The bid preference for city-based businesses set forth in Section 2-92-412 shall be included in that process. (d) The City Council approves the privatization by majority vote. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-220 Eligibility of contractors.

2-164-220 Eligibility of contractors. Each selected proposed Contractor shall submit to the City an Economic Disclosure Statement, which shall also be submitted by associated entities as required by that Statement and associated Rules. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-230 Performance reports.

2-164-230 Performance reports. All Contractors shall submit annual performance reports to the Office, which upon receipt shall post such reports. Such performance reports shall be supplied to the appropriate City Council Committee upon request and shall include, but not be limited to: (a) an affirmation of compliance with Federal, State and City labor, nondiscrimination, affirmative action, unemployment, occupational safety and health, environmental protection and workers' compensation laws; (b) the disclosure of any adjudicated finding of a material violation of any of the foregoing labor laws; and (c) a copy of the Contractor's most recent EEO-1 report for the Services, where such report is required of the Contractor by law. Such reports shall be public documents available for public inspection. For each Privatization Contract, the Affected Department shall every two years complete an evaluation of the Contractor's performance on issues including but not limited to: timeliness, quality of performance, actual costs, the Contractor's ability to work within the allotted cost and the accuracy of the Contractor's billing, safety, the quality of the working relationship between the Contractor and the Affected Department, the quality of the Contractor's required documentation, and any substantively significant modification of the Privatization Contract, documenting the nature and reason for the modification. The Affected Department shall submit the evaluation to the Office, which upon receipt shall post the non-confidential portions of the report. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-240 Assistance For Laid-Off City Employees.

2-164-240 Assistance For Laid-Off City Employees. In the event any City employees are laid-off as a direct result of a Privatization Contract, Section 2-164-090 shall apply. Nothing in this chapter shall be construed to replace or diminish the rights of City of Chicago employees as specified in their collective bargaining agreements. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-250 Administration.

2-164-250 Administration. The Budget Director, in consultation with all Affected Departments, is authorized to administer this Article. This authority includes the power to adopt all necessary and reasonable rules and regulations. (Added Coun. J. 11-18-15, p. 14398, § 1)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2605106Fetched: 10/24/2026