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HomeMy WebLinkAboutResolutions - R-18-010 - 04/30/2018 - IGA Local Debt Recovery ProgramRESOLUTION NO. R-18-010 A RESOLUTION AUTHORIZING THE MAYOR'S EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE ILLINOIS OFFICE OF THE COMPTROLLER AND THE CITY OF MCHENRY REGARDING ACCESS TO THE COMPTROLLER'S LOCAL DEBT RECOVERY PROGRAM. WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Resolution constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, the City of McHenry, in conjunction with the Office of the Comptroller for the State of Illinois, has entered into an agreement regarding access to the Comptroller's Local Debt Recovery Program; and WHEREAS, both the State of Illinois and the City of McHenry have a responsibility to collect debts owed to its respective public bodies; and WHEREAS, the Mayor is hereby authorized to affix his signature to said agreement for the uses and purposes set forth. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS that the Mayor is hereby authorized to sign the said agreement on behalf of the City of McHenry. APPROVED and ADOPTED this 30th day of Apri1201$. Voting Aye: Curry, Schaefer, Devine, Condon, Glab Mihevc and Santi Voting Nay: 0 Absent: 0 ATTEST: Deputy City Clerk INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE ILLINOIS OFFICE OF THE COMPTROLLER AND THE CITY OF MCHENRY REGARDING ACCESS TO THE COMPTROLLER'S LOCAL DEBT RECOVERY PROGRAM This Intergovernmental Agreement ("the Agreement") is hereby made and entered into as of the date of execution by and between the Illinois Office of the Comptroller (hereinafter "IOC") and the City' of Mchenry (hereinafter "the local unit"), in order to provide the named local unit access to the Local Debt Recovery Program for purposes of collecting both tax and nontax debts owed to the named local unit. Each of the parties hereto is a "public agency" as defined in Section 2 of the Intergovernmental Cooperation Act [5 ILCS 220/2]. WHEREAS, both the State of Illinois and the local unit have a responsibility to collect debts owed to its respective public bodies; WHEREAS, IOC operates a system, known as the Comptroller's Offset System (hereinafter, "the System"), for collection of debt owed the State by persons receiving payments from the State; WHEREAS, the Illinois General Assembly specifically provided for the ability of the local unit to utilize the System when it amended Section 10.05 and added Section 10.05d to the State Comptroller Act [P.A. 97-632; 15 ILCS 405110.05 and 10.05d]; WHEREAS, IOC and the local unit are empowered under the Illinois Constitution [Ill. Const., Art. VII, Sec. 10], Section 3 of the Intergovernmental Cooperation Act [5 ILCS 220/3], and Section 10.05d of the State Comptroller Act (hereinafter, "the Act") [15 ILCS 405/10.05d] to contract with each other in any manner not prohibited by law; NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants and promises contained herein, the sufficiency of which is hereby acknowledged, the parties do hereby agree as follows: Article I — Purpose The purpose of the Agreement between the IOC and the local unit is to establish the terms and conditions for the offset of the State's tax and nontax payments in order to collect tax and nontax debts owed to the local unit. Article H — Authority The authority for State payment offset is granted under Section 10.05 of the Act [15 ILCS 405/10.05] and the authority for entering into this Agreement is granted under Section 10.05d of the Act [15 ILCS 405/10.05d], Section 3 of the Intergovernmental Cooperation Act [5 ILCS 220/3], and Article VII of the Illinois Constitution [I11. Const., Art. VII, Sec. 10]. Article III — State Payment Offset Requirements and Operations A. Legal Requirements. The offset of State payments shall be conducted pursuant to the authority granted in Section 10.05 and 10.05d of the Act [15 ILCS 405/10.05 and 10.05d] and the requirements set forth in this Agreement. 1. Definition of "Debt" (a) For purposes of this Agreement, debt shall mean any monies owed to the local unit which is less than 7 years past the date of final determination, as confirmed by the local unit in Article III(A)(2)(a)(viii) of this Agreement. (b) No debt which is more than 7 years past the date of final determination may be placed or may remain on the System. (c) No debt which has resulted in the issuance of a warrant for the arrest of the debtor may be placed or remain on the System so long as that warrant for arrest is active. (d) No debt which has resulted in the attachment of a lien on any personal property or other personal interest of the debtor shall be placed or remain on the System so long as that lien is attached to that property or interest. 2. Due Process & Notification (a) Before submitting a debt to IOC for State payment offset, the local unit must comply with all of the notification requirements of this Agreement. For purposes of this Agreement, notification of an account or claim eligible to be offset shall occur when the local unit submits to IOC the following information: (i) the name and address and/or another unique identifier of the person against whom the claim exists; (ii) the amount of the claim then due and payable to the local unit; (iii) the reason why there is an amount due to the local unit (i.e., tax liability, overpayment, etc.); (iv) the time period to which the claim is attributable; (v) the local entity to which the debt is owed; (vi) a description of the type of notification has been given to the person against whom the claim exists and the type of opportunity to be heard afforded to such a person; 2 (vii) a statement as to the outcome of any hearings or other proceedings held to establish the debt, or a statement that no hearing was requested; and, (viii) the date of final determination of the debt. (b) IOC will not process a claim under the Agreement until notification has been received from the local unit that the debt has been established through notice and opportunity to be heard. (c) The local unit is required to provide the debtor with information about a procedure to challenge the existence, amount, and current collectability of the debt prior to the submission of a claim to IOC .for entry into the System. The decision resulting from the utilization of this procedure must be reviewable. 3. Certification (a) The chief officer of the local unit shall, at the time the debt is referred, certify that the debt is past due and legally enforceable in the amount stated, and that there is no legal bar to collection by State payment offset. (b) Only debts finally determined as currently due and payable to the local unit may be certified to IOC as a claim for offset. (c) The chief officer of the local unit may delegate to a responsible person or persons the authority to execute the statement of the claim required by the Agreement. (d) This delegation of authority shall be made on either electronic or paper based forms provided by the Comptroller. (e) For purposes of this Agreement, "chief officer of the local unit" means the Finance Director. (f) The chief officer hereby acknowledges and agrees that he/she will ensure that the login information into any electronic system provided by the Office of the Comptroller will remain confidential, that only active employees of the local unit may be granted the delegation of authority provided for in Part (c) of this Subsection, and that under no circumstances is a vendor, agent, consultant, collector or any other third -party representative of the local unit authorized to submit or certify debt to IOC on behalf of the local unit. 4. Notification of Change in Status (a) The chief officer must notify IOC as soon as possible, but in no case later than 30 days, after receiving notice of a change in the status of an offset claim. (b) A change in status may include, but is not limited to, payments received other than through a successful offset, the filing of a bankruptcy petition, the death of the debtor, or the expiration of the ability for the debt to remain on the System, as provided for in Article III(A)(1)(b) of this Agreement. Notification of Change in the Chief Officer (a) The local unit shall be responsible for notifying IOC as soon as is practicable in the event the chief officer named in the Agreement is no longer an officer or employee of the local unit or is otherwise unable to perform the certification process provided for in Subsection 3 of this Section. (b) Upon obtaining knowledge that the chief officer is no longer an officer or employee of the local unit or is otherwise unable to perform the certification process provided for in Subsection 3 of this Section, whether through notification by the local unit or by any other means, IOC shall suspend the authority for the chief officer and any of his or her designees to certify debt to IOC. (c) The local unit shall be responsible for updating records with IOC in the event of a change in the chief officer in order to reestablish certification authority and resume collection by State payment offset. B. Operational Requirements 1. Technical Requirements. IOC agrees to work with the local unit to facilitate information and data procedures as provided for in this Agreement. The local unit agrees to adhere to the standards and practices of IOC when transmitting and receiving data. The chief officer shall assume the responsibility of providing updates to the debtor records on file with IOC in order to ensure an equitable resolution of the debts owed to the local unit. 2. Fee. A fee may be charged to the debtor and shall be no more than $20 per payment transaction. The fee will be deducted from the payment to be offset prior to issuance to the local unit. 3. Offset Notices. IOC will send offset notices to the debtor upon processing a claim under the Act and this Agreement. The notice will state that a request has been made to make an offset against a payment due to the debtor, identify the local unit as the entity submitting the request, provide the debtor with a phone number made available pursuant to Article III M (13)(6) of this Agreement, and inform the debtor that they may formally protest the offset within sixty (60) days of the written notice. 4. IOC Protest Process. If a protest is received, IOC will determine the amount due and payable to the local unit. This determination will be made by a Hearing Officer and will be made in light of all information relating to the transaction in the possession of IOC and any other information IOC - may request and obtain from the local unit and the debtor subject to the offset. If IOC requests information from the local unit relating to the offset, the local unit will respond within sixty (60) days of IOC's request. IOC may grant the local unit an additional sixty (60) day extension for time to respond. The local unit shall complete an adjudication review with IOC in order to evaluate the local unit and the protest process prior to the offset of any State payments. IOC Hearing Officer. The local unit hereby agrees to provide the Hearing Officer with any information requested in an efficient and timely manner in order to facilitate the prompt resolution to protests filed as a result of this Agreement. For purposes of this Agreement, any decision rendered by the Hearing Officer shall be binding on the local unit and shall be the final determination on the matter. The Hearing Officer may continue the review of a protest at his/her discretion in order to assure an equitable resolution. 6. Local Unit Call Center. The local unit hereby agrees to provide a working phone number which IOC will furnish to persons offset under this Agreement. The local unit shall ensure that the phone number is properly staffed in order to provide information about the debt the local unit is offsetting under this Agreement. The phone number for purposes of this Section and the Agreement is: 815/363-2100. 7. Debt Priorities. If a debtor has more than one local unit debt, the debt with the oldest date ofentry on the System shall be offset first. Transfer of Payment. Transfer of payment by IOC to the local unit shall be made in the form of electronic funds transfer (EFT). Nothing in this section or this Agreement shall limit the ability of either party to modify this Agreement at a later date in order to provide for an alternative method(s) of payment transfer. 9. IOC Refunds. If IOC determines that a payment is erroneous or otherwise not due to the local unit, IOC will process a refund of the offset, and refund the amount offset to the debtor. In the event the refund results in only a partial refund to the debtor, IOC will retain the fee referenced in Article III, Paragraph B, Section 2 above. The fee will only be refunded to the debtor in the event of a full refund of the offset amount. 10. Local Unit Refunds. The local unit is responsible for refunding monies to the debtor, including any and all administrative fees collected by IOC, if 5 an offset occurred due to inaccurate debt information or over collection, and the local unit has already received payment from IOC. IOC will only refund monies in the event that a payment has not yet been made to the local unit. 11. Third -Party Matching Services. IOC may utilize the services of a third - party vendor to assist in the identification of individual debtors. The local unit shall review and add any valid matches which result from the assistance of the third -party vendor within 30 days of receipt of the updated records. If the local unit is unable to add the valid matches within 30 days of receipt of the updated records, the chief officer must notify IOC as to the reason the local unit is not able to add the records in addition to a time frame for adding the records in the future. Article IV — Permissible Use of Information IOC acknowledges that the local unit is providing sensitive information about local debts for the purpose of conducting offsets under the Agreement. As such, IOC will use the information solely in connection with the Local Debt Recovery Program. IOC shall safeguard the local information in the same manner as it protects State debt information. The local unit acknowledges that IOC is providing sensitive information about State payments for the purpose of conducting offsets under the Agreement. As such, the local unit will use the information solely in connection with the Local Debt Recovery Program. The local unit shall safeguard State information in the same manner as it protects local debt information. The parties may use information in any litigation involving the parties, when such information is relevant to the litigation. Article V — Term of the Agreement and Modifications The Agreement becomes effective as of the Effective Date and shall remain in effect until it is terminated by one of the parties. Either parry may terminate this Agreement by giving the other party written notice at least thirty (30) days prior to the effective date of the termination. Any modifications to the Agreement shall be in writing and signed by both parties. Article VI — No Liability to Other Parties Except for the fees described in Article III, paragraph B, Section 2 above, each party shall be responsible for its own costs incurred in connection with the Agreement. Each party shall be responsible for resolving and reconciling its own errors, but shall not be liable to any other parties for damages of any kind as a result of errors. Each party shall be liable for the acts and omissions of its own employees and agents. The Agreement does not confer any rights or benefits on any third party. Article VH — Issue Resolution The parties acknowledge that IOC is ultimately responsible for the development, design and operation of the System. Subject to that understanding, the parties agree to work cooperatively to resolve any matters that arise during the development, design and implementation of the program. If an issue cannot be resolved informally by mutual agreement of staff personnel, then the parties agree to elevate the issue to a senior level manager for resolution of the issue. For purposes of the Agreement, the "senior level managers" are: IOC: Cesar Orozco, Director — Department of Government and Community Affairs 2. Local Unit: Carolyn Lynch, Finance Director - City of Mchenry Article VIII — Contacts The points of contacts for this Agreement are: IOC: John Gay, General Counsel Illinois Office of the Comptroller 100 W. Randolph St, Suite 15-500 Chicago, Illinois 60601 Phone: 312/814-5783 Fax: 312/814-0957 E-mail: John.Gay@illinoiscomptroller.gov Local Unit: David McArdle, Attorney Zukowski, Rogers, Flood & McArdle 50 Virginia St Crystal Lake, Il 60014 Phone: 815/459-2050 Email: dmcardle@zrfinlaw.com Article IX — Acceptance of Terms and Commitment The signing of this document by authorized officials forms a binding commitment between IOC and the City of Mchenry. The parties are obligated to perform in accordance with the terms and conditions of this document, any properly executed modification, addition, or amendment thereto, any attachment, appendix, addendum, or supplemental thereto, and any documents and requirements incorporated by reference. By their signing, the signatories represent and certify that they possess the authority to bind their respective organizations to the terms of this document, and hereby do so. [Signature Page Follows] 7 IN WITNESS WHEREOF, the Illinois Office of the Comptroller and the City of Mchenry by the following officials sign their names to enter into this agreement. ILLINOIS OFFICE OF THE COMPTROLLER USA Name: Susana A. Mendoza Title: Comptroller CITY OF MCH/ENRY By: Y Name: Wayne Jett Title: Mayor Date: Date: LOCAL DEBT RECOVERY PROGRAM Claiming Entity Application INSTRUCTIONS This form should be completed by the Claiming Entity (CE), in cooperation with the Office of Government and Community Affairs (OGCA). This form must be completed and processed priorto acceptance of any files, including test files, for participation in the Local Debt Recovery Program (LDRP). All fields above the SYSTEMS ADMINISTRATION USE ONLY area are required. The Name, Department Name and Address fields will be used for both consolidated payments to the CE and in the notification letter to the debtor when an offset occurs. Upon completion, send this form to your assigned Program Manager. A separate User Authorization (SCO 501i) is also required. IMPORTANT: You must complete separate applications for debts to be reported by Taxpayer Identification Number (TIN) and those debts where the TIN is not known. CLAIMING ENTITY NAME:(3ocharactersmaximum) CITY OFMCHENRY DEPARTMENT: (30 haracters maximum)FINANCE DEPARTMENT TIN KNOWN FOR ALL DEBTOR RECORDS Yes, TIN Known No, TIN Not Known ADDRESS: 333 S. GREEN ST MCHENRY IL State PHONE NUMBER ON DEBTOR LETTERS: (815) 363-2100 PRODUCTION/TESTING CONTACT ADJUDICATION CONTACT NAME: PHONE #: EMAIL: NAME: PHONE #: EMAIL: Street Address City 60050 Zip Code ANNE M KRANZ (815) 363-2156 akranz&i.mchenry.iLus ANNE M KRANZ (815) 363-2156 akranza-ci.mchenw.il.us Agree to Adjudication Call with OGCA Yes Q✓ No rl SYSTEMS ADMINISTRATION USE ONLY CLAIMING ENTITY ID: VENDOR NUMBER: Development AGC2 ❑ Production AGC2 ORG2 ❑ FGY2 ® VEN2 ❑ CLAT ❑ LRMT ❑ ORG2 ❑ FGY2 8 VEN2 ❑ CLAT ® LRMT ❑ SCO-500 (8/20/13) OY afl lr 1 '� rhD�,�81 ILLINOIS DEBT RECOVERY OFFSET PORTAL User Authorization. OW ` s 1 sm cnon� For submitting claims for offset to the Illinois Office of the Comptroller (IOC), Claiming Entities (CEs) must complete this User Authorization form and return to IOC. Field Local Debt Recovery Program State Agency Entity Name Local Claiming Entity name Agency name Department Departmentname Division name Entity ID Blank. To be assigned by IOC 5-digit agency code Chief Officer Chief Officer named on IGA Agency head User Coordinator This user is given administrative privileges to manage users of the (DROP system on the claiming entity's behalf, excluding the ability to assign file submission authority which can only be assigned by the Chief Officer. ENTITY NAME: (30 characters maximum) CI TY OF MCHENRY DEPARTMENT: (30 characters maximum) FINANCE DEPARTMENT ENTITY ID: (If Known) CHIEF OFFICER NAME: CAROLYN LYNCH CHIEF OFFICER EMAIL: clynch@ci.mchenryJl.us USER COORDINATOR NAME: ANNE M KRANZ USER COORDINATOR EMAIL: akranz@ci.mchenryJl.us The Authorized Signature of the Chief Officer below will be kept on file for use as a certifying signature for each file transmitted to the Illinois Office of the Comptroller. Only employees of the entity who are granted the appropriate security privileges by the Chief Officer will have authority to generate and submit these files on the Chief Officer's behalf. This authority cannot be granted to third parties. In addition, by signing below, the Chief Officer promises to treat their login information as confidential and will not provide that information to employees, agents or any other third parties for the purpose of accessing the IDROP system. Any violation of these terms and conditions may result in dismissal from the program. ' - Date 711W,5 ' —.'....� ' Debt Codes: Category: Carry TIN:❑ Program Mgr: SCO-501i — 9/23/13 E STd1l , i A6e.��,ni�t ��. 1) 5/g/9/9/ / / / / / Taxpayer Identification Number Authorization for Direct Deposit of Payments COMMERCIAL (This form is used for vendors who provide goods and services to the State of Illinois) Sign and return completed form to: This is my: ❑ Social Security Number ❑ Federal Employer LD. Number ❑✓ Governmental Unit Code 2) CITY OF MCHENRY OFFICE OF THE COMPTROLLER STATE OF ILLINOIS Attn: Electronic Commerce 325 W. Adams St., 3rd Floor - Springfield, Illinois 62704-1871 Please type or print in ink. Individual Payee Last Name (or Company Name) Individual Payee First Name 3) 333 S GREEN ST, MCHENRY IL 60050 Mailing Address (Indicate Suite, Apartment Number, or P. O. Box, if applicable), City, State, Zip Code 4)(8 /1 /5 /) ' A /3 i-- 2 /1 /0 i0 i Area Code and Telephone Number (Davtime S) dynch@ci.rnchenryJl.us Email Address Under penalties of perjury, I certify that the information provided on this form is true and correct, and that I am the individual payee or an authorized representative for the above named company. I authorize the State of Illinois Office of the Comptroller to direct payments for crediting in my account at the financial institution designated on this form and to initiate, if necessary, reversal or recall entries for any credit entries in error. If a direct deposit payment cannot be made, I understand that payment will be mailed to the payee address that appears on the payment voucher. This authorization is applicable to all Commercial payments issued by the Comptroller to the payee's Taxpayer Identification Number, except where authorized by the payee for other State programs. Is this request pursuant to an assignment, U.C.C. lien, factoring or security agreement? Yes No- 6) Oaro Ag LLAnck I /o Name ofAuth /ing Per n (Please print) Signature ofAutl rizing Per n Date Please attach a voided check (starter checks not accepted) or an account verification letter fromyouur financial institution signed by an authorized official. NOTE: It is recommended that you contact your financial institution to verify the transit routing number. If you need Remittance information you should also notify your institution that State payments will be transmitted in the Corporate Credit or Debit with Addenda (CCD+) or Corporate Trade Exchange (CTA9 format with multiple addenda records. 7) Select ONE of the following: ✓❑ Initial Direct Deposit Setup ❑ Direct Deposit Change (previous bank information MUST be entered in 12) and 13) below for changes) 8) 0/7/1/9/2/5/7/8/7/ 9)2 /6/5/0/0/0/4/7/3/8/ /—/ / / / —/-1 Nine -digit Routing Transit Number Payee Account Number DO NOT INCLUDE CHECK NUMBER 10) You must select one of the following options: El Direct deposit to my CHECKING account. ® Direct deposit to my SAVINGS account. 11) Crystal Lake Bank & Trust �8 / 1 / 51) 3 / 4 / 4 / _ 6 / 6 / 0 / 0 / Name of Financial Institution Financial Institution Telephone Number FOR CHANGES ONLY: 12) /�/�/�/s/_/�/�/_/ 13) /�/ /�/�/_/�/ /�/ / / / /�/_/ / / Previous Routing Transit Number Previous Payee Account Number SC®-400 3/2016, 000 Printed by the Authority of State of Illinois CITY OF McHENRY: ILLNOIS GENERALFUND 766551 McHENRY BANK & TRUST CITY OF WHENRY A Branch of Crystal Lake Bank & Trust 333 S. GREEN STREET Pd MENRY, ILLEE OIS 60050 'AY FO THE DRDER DF ,ma`s CHECK.# DATE r� GENERAL FUND AMOUNT 7665,1578 719 Mang r ---6 TRFASUR€R rrry CLERK no?6655111' 1:0?1925?8?1: 110265000Le?38110 766551 IGA INFORMATION REQUIRED City Of McHenry 333 S Green St McHenry IL 60050 Chief Executive Off icer/Signee Wayne Jett Mayor Resolution Contact Carolyn Lynch Finance Director Legal Counsel David McArdle Attorney Zukowski, Rogers, Flood & McArdle 50 Virginia St Crystal Lake IL 60014 815-459-2050 dmcardle@zrfmlaw.com /g STATE 6 STATE OF ILLINOIS COMPTROLLER a SUSANA A. MENDOZA Acknowledgment Regarding Notification and Appeal Procedures by Claiming Entity For participation in the Local Debt Recovery Program (LDRP) with the Illinois Office of the Comptroller (IOC), I hereby acknowledge the following as legal counsel of the Claiming Entity: The Claiming Entity's notification and appeal processes satisfy Due Process in accordance with the Intergovernmental Agreement and laws of the State of Illinois. Furthermore, the IOC has requested documentation regarding notification and appeal processes from the participating Claiming Entity for the sole purpose of future use by the IOC if a protest is filed by the debtor. The documentation will be referenced if the IOC has to adjudicate the protest. I hereby acknowledge and accept the foregoing as legal counsel of the Claiming Entity. Legal Counsel's Signature Date Name Title City of McHenry Claiming Entity *This document may not be altered in any way. SCO-504 12/2016