Bill
SB 3381
Sets rules for Illinois county water commissions to plan and procure water projects using design-build or CMAR, with strict governance, procurement, and financing processes.
SB 3381 (104th Illinois General Assembly) - Water Commission-Construction
Overview
- Purpose: Establish and regulate how county water commissions (formed under the Water Commission Act of 1985 and Division 135 of the Illinois Municipal Code) may plan, procure, and manage design-build and other alternative delivery projects for waterworks systems and related public improvements. The bill introduces definitions, procurement rules, scope/criteria development, proposal processes, and project delivery provisions to allow design-build and construction-manager-at-risk methods, with strong emphasis on competitive selection, transparency, and minority/women-owned business participation where applicable.
Key Provisions and Changes
1) New definitions (Section 1.5)
- Construction-manager-at-risk delivery method: CMAR approach where the manager commits to preconstruction services and, if terms are agreed, undertakes construction.
- Design-build delivery method and contract: Single-entity responsibility for design, engineering, surveying, and construction services.
- Design-build entity, design professional, evaluation criteria, proposal, request for proposal, and scope/performance criteria: Clarify players and processes in design-build procurements.
2) Applicability of the Act to county water commissions (Section 2)
- The act applies to county water commissions created in specified ways in counties with a home county, contiguous to a county with population over 1,000,000.
- Transition of existing commissioners to a new county water commission governing board within 30 days; new board members’ terms and governance rules described.
- Territory rules: Includes home county territory plus included units, with excluded units defined by certain water usage criteria; restrictions on new cross-border water sourcing outside the home county, with limited temporary emergency supply exceptions.
- Financial/obligations: The county water commission assumes debts/obligations on transition; new governance continues debt obligations.
3) Governance and authority (Section 2(c))
- Establishment of a board of commissioners with specific appointment rules (home county residents, district representatives, and mayors of included units). Terms are 6 years, with staggered terms at inception.
- Compensation limits (not more than $600/year for commissioners; no compensation for serving if a serving official from a county/unit is on the commission).
- Quorum and decision rules; prohibit conflicts of interest; Class C misdemeanor for violations.
4) Fiscal authority (Sections 2(d)-(2(l))
- Bonding and indebtedness: May issue general obligation bonds up to 5.75% of the aggregate taxable property value within the commission’s territory. A direct annual tax (unlimited rate/amount) is required to pay debt service for bonds.
- Referendum for bonds: General obligation bonds require a voter referendum and majority approval.
- Tax authority: Annual property tax levy up to 0.005% plus, for one year only, an additional up to 0.20% for purposes allowed by the Act (with constraints on frequency).
- Loans: Ability to borrow from home county or included units, subject to terms agreed by the governing bodies.
- Retail distribution prohibition: No county water commission may engage in retail sale of water to residents outside municipalities.
- State pledge: State pledges to honor contracts/loans and not impair the ability of counties to fulfill water obligations.
5) Construction procurement and alternative delivery methods (Sections 4.6–4.13)
- Section 4.6: Procurement rules for waterworks systems and major public improvements. Requires bidding for projects above threshold or, with a majority vote of commissioners, the option to use non-bid procurement in certain cases. Emergency procurement provisions included.
- Section 4.6: Allows alternative project delivery methods (design-build, CMAR) with competitive selection principles; permits confidential discussions with proposers to inform proposals.
- Section 4.6: Goals for minority/women/disadvantaged/veteran-owned businesses and other criteria; allowed deviations from lowest bid where justified; constitutional standards apply to preferences.
- Section 4.7: Solicitation of design-build proposals
- Notice of intent to receive proposals at least 14 days before RFP; online publication and publication in industry outlets.
- RFP content: project name, preliminary schedule, budget/funding, prequalification criteria, contract terms, performance criteria, evaluation criteria, number of entities considered, etc.
- Proposals due: at least 21 days after RFP; if project > $12 million, 28 days; minimum 30 days for Phase II after shortlist.
- Section 4.8: Development of scope and performance criteria
- Development with licensed design professionals; scope/criteria detail, level of design required, and disclosure restrictions (design professional not eligible to participate in proposals).
- Scope/criteria may be refined after contract award without invalidating the agreement.
- Section 4.9: Selection procedures
- Two-phase process: Phase I qualifications; Phase II technical/cost proposals.
- Phase I factors: personnel experience, similar project experience, financial capacity, timeliness, references, consultant qualifications; shortlist of 2-6 entities required (minimum 2, maximum 6).
- Phase II: technical and cost evaluation factors with stated weighting; potential use of an outside licensed engineer to assess technical submissions.
- Proposals evaluated and contract awarded to the highest overall ranked entity.
- Section 4.10: Small projects
- Projects under $12 million may be combined into a single 2-phase process if appropriate.
- Section 4.11: Submission of proposals
- Sealed proposals; disclosure timing; cost submittal in a separate sealed envelope; disclosure of proposers after submission and Phase II selection.
- Section 4.12: Award and performance
- Notice of award in writing; unsuccessful entities notified; no post-submission best-and-final offers; potential negotiation after award to improve terms without diminishing salient features.
- Section 4.13: Applicability
- Sections 4.7–4.12 apply notwithstanding contrary provisions in Division 135 of Article 11 of the Illinois Municipal Code.
Who Would Be Affected
- County water commissions created under the described statutes and their included units and municipalities.
- Local governments that participate as included or excluded units within home counties.
- Design-build entities, construction managers, and design professionals working on eligible water projects.
- Local labor, trade councils, and minority/women-owned businesses due to procurement goals and project labor requirements.
- Taxpayers within the commission territory, who would ultimately bear debt service via property taxes for authorized bonds.
Timeline and Procedural Notes
- The act includes transition timing for moving to county water commissions (appointment of new commissioners within 30 days; terms defined for new board members).
- Bonding requires voter approval for general obligation bonds (referendum form specified).
- Design-build procurement timelines specify notice, RFP publication, and Phase II timelines; smaller projects may use a simplified two-phase process.
- Effective dates tie to prior amendments (e.g., references to amendatory acts from 1991 and 2008); SB 3381’s specific effective date would follow parliamentary adoption and signing.
Conclusion
SB 3381 reconfigures how Illinois county water commissions can procure and manage large water infrastructure projects, explicitly enabling design-build and CMAR approaches, tightening governance and procurement procedures, and outlining financing and territorial rules to align regional water supply planning with statutory limitations and public accountability.
Compiled from official sources — confirm details with the bill’s official record.
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