[HISTORY: Adopted by the City Council of the City of Crystal
Lake 12-11-2017 by Ord. No. 7420. Amendments noted where applicable.]
GENERAL REFERENCES
Purchasing and contributions — See Ch. 102.
This policy sets forth authorized employees of the City of Crystal
Lake and authority levels of those employees to act on behalf of the
City of Crystal Lake in the execution of certain documents. The City
is committed to effective, efficient and transparent management of
City business and processes. Only City officers and employees with
appropriate approval authority and accountability shall approve financial
transactions and sign legally binding documents to ensure responsible
stewardship of City's resources.
The provisions of this chapter apply to the execution of documents
by authorized City employees that are not otherwise provided for by
the City Code or ordinances or resolutions approved by the City Council.
In order for agreements which require expenditures to be executed,
expenditures must be included in the approved budget or the agreement
includes language, as approved by the City Attorney, to allow for
termination of the agreement if the City Council does not appropriate
the funds necessary to continue the agreement.
A.
Agreements, contracts, amendments or change orders for goods, maintenance
or services. The City Manager is authorized to execute those agreements,
contracts, amendments or change orders where the total annual commitment
does not exceed $25,000, or the agreement, contract, amendment or
change order falls within the contingency amount approved by the City
Council.
B.
Agreements, contracts, amendments or change orders where the City
is providing goods, maintenance or services. The City Manager is authorized
to enter into and execute those agreements, contracts, amendments
or change orders permitting the City to provide goods, maintenance
or services to a public or private entity where the annual commitment
by the City does not exceed $25,000 per fiscal year.
C.
Claims and settlements. The City Manager is authorized to settle,
approve or reject claims or litigation in an amount not to exceed
$25,000.
D.
Agreements, contracts, amendments or change orders where the City
is landlord/tenant, licensee/licensor or facility user. The City Manager
is authorized to negotiate, enter into and execute those agreements,
contracts, amendments or change orders with public or private entities
where the City is landlord/tenant, licensee/licensor or for temporary
use of a facility by the City where the total annual commitment does
not exceed $25,000.
E.
Acquisition of or disposition of real property on the City's
behalf.
(1)
ACQUISITION
DISPOSITION
PUBLIC PROPERTY
REAL PROPERTY
For purposes of this subsection, the following definitions shall
apply:
The purchase, lease or license of real property by the City
for the City's use or acceptance by the City of real property
by dedication or gift.
The sale, lease, vacation, release, or license of some or
all of the City's interest in public property to another.
Real property that is titled in the name of the City or City-created
boards or commissions; real property where the City or a City-created
board or commission is the grantee, devisee, or beneficiary; real
property which was dedicated to the public use, whether generally
or for a specific purpose, including, but not limited to, property
within the City or within 1.5 miles of the City limits; easements
where the City is grantee; real property leased by the City as a lessee;
real property physically occupied by the City or by City operations;
and real property possessed or utilized by the City under a claim
of right.
Any interest in real estate, whether the interest has been
acquired by purchase, lease, license, common law or statutory dedication,
gift, or possession.
(2)
Authority to negotiate and execute documents for acquisition and
disposition. The City Manager may be authorized to execute agreements,
deeds, easements or other documents necessary to consummate the acquisition
or disposition of real property when the total acquisition or disposition
of real property does not exceed $25,000 or when authorized by resolution
of the City Council. Prior to any acquisition or disposition of real
property, the City Attorney shall approve the form of the documents
utilized in the transaction.
(3)
Standards for acquisition. The following are procedures and standards
for acquisition of property:
(a)
Acquisition plan. City staff should, prior to the formal initiation
of negotiations, develop a written acquisition plan. The plan should
include the following elements.
(b)
Goal. Staff should explain specifically how acquiring the property
will assist in accomplishing a City Council goal or Council-adopted
plan.
(c)
Costs of acquisition. Staff should develop a reasonably accurate
estimate of the costs of acquisition, including: (a) Purchase price,
(b) Expenses of purchase, e.g., appraisals, title insurance or search,
environmental assessment, assumed or forgiven taxes, and assumed or
forgiven City liens, (c) Post-closing expenses, and (d) Source of
revenues for acquisition and maintenance.
(4)
Purchase price. The City's policy is to acquire the property
at the lowest cost to the City. Below-market purchase price or an
owner's desire to donate the property should be a factor in considering
the purchase of real property. However, below-market price or donation
should not be a determining factor deciding whether or not the City
acquires property.
F.
Credit applications. Credit applications often contain agreement
language. The Director of Finance or designee is authorized to sign
credit applications after City Attorney review of the credit application
for such purchases as are authorized by Code or ordinance or resolution
of the City Council.
G.
Motor vehicle paperwork. When authorized by the City Council through
a surplus designation or purchase approval, the Director of Finance
or designee is authorized to sign motor vehicle documentation authorizing
the purchase or sale of a motor vehicle on behalf of the City of Crystal
Lake.
H.
Grant applications. Due to the time-sensitive nature of grant applications,
the City Manager may execute grant application paperwork for grants
that do not bind the City monetarily for more than $25,000 annually.
I.
Lien/lien release. The Director of Finance is authorized to execute and record liens in accordance with provisions in the Illinois Municipal Code, 65 ILCS 5/1-1-1 et seq. Once a lien is recorded, with City Council approval, the City can also bring a lawsuit to foreclose the lien. The Finance Director is also authorized to execute lien releases once the indebtedness has been satisfied in its entirety or in accordance with the provisions of Chapter 31, Delinquent Accounts. Recording of the lien release is the responsibility of the property owner to whom the lien has been released.
J.
Uncollectable receivables. The Director of Finance is authorized to modify, cancel, and write off uncollectible receivables in accordance with the provisions of Chapter 31, Delinquent Accounts.
K.
Standard pre-litigation and litigation procedural documents. The
City Attorney or City's Special Counsel or his/her designee is
authorized to sign standard pre-litigation and litigation procedural
documents, such as continuances, tolling agreements, conflict waivers
and joint defense agreements, where such documents do not result in
a final settlement of the underlying litigation.
L.
Agreements approved by the City Council. City officers and employees
designated by the City Council to sign agreements by resolution or
minute order are authorized to execute such documents.
M.
Utility relocation agreements up to $25,000. The City Manager is
authorized to sign utility relocation contracts up to $25,000. This
authority is necessary for projects that require an immediate response
(signed contract) in order to remain within the utility construction
schedule.
N.
Regulatory reporting. The City Manager is authorized to delegate
signature authority to a designee for regulatory reporting.
O.
Letters of support or opposition.
(1)
The City Manager, or department directors, with the approval of the
City Manager, are authorized to sign letters of support of or opposition
to an organization, governmental entity or legislation when the organization
or legislation relates to:
(a)
A position taken by the Illinois Municipal League on a matter,
unless the City Council has taken a contrary position.
(b)
Legislation regarding projects approved by City Council.
(c)
Items routine in nature, experienced in the normal course of
conducting business of the City.
(d)
A previously approved City Council position.
(2)
The City Attorney, in consultation with the City Manager, is authorized
to sign legal briefs and/or letters related to:
(a)
Legislation supporting a position taken by the Illinois Municipal
League on a matter, unless the City Council has taken a contrary position.
(b)
Legislation regarding projects approved by City Council.
(c)
Requesting an Attorney General's Opinion, judicial proceeding
or judicial opinion, when in his or her professional opinion the letter
is in the best legal interests of the City of Crystal Lake.
(3)
Letters of support or opposition signed in accordance with the provisions
of this subsection require a copy to be submitted to the Mayor and
City Council.
P.
Software terms and conditions. The City Manager or a department director,
with the approval of the City Manager, is authorized to negotiate
and sign agreements for the installation, use, support or maintenance
of software, provided that such agreements have been approved by the
City Council or are within the spending authority of the City Manager
as outlined in this chapter.
Q.
Authorized City officials and employees regarding bills, banking,
trust and investment accounts. This policy sets forth authorized City
officials and employees to act on behalf of the City of Crystal Lake
and authorized signatures with regard to bills, City banking, trust
and investment accounts to establish accounts, withdraw, transfer
or deposit funds for the purpose of investment and to cover financial
commitments of the City.
(1)
Operating accounts.
(a)
The operating account is used for reimbursements, transfers,
employee compensation, benefits and payments to vendors, contractors,
government agencies, financial institutions and others who provide
supplies, services and/or equipment to the City. Any two of the following
City officials or City staff members or their successors shall be
authorized to sign checks, or other instruments for the withdrawal
of moneys in the operating account: Mayor, City Clerk, City Manager,
and Director of Finance.
(b)
Any one of the City officials or City staff members listed above
may transfer funds from the operating account to another City account
for the purpose of investing. When authorized by one of the City officials
or City staff members listed above, a transfer may be processed by
the following City staff members: Assistant Director of Finance or
City Accountant.
(2)
Investment/Trust accounts.
(a)
Investment accounts cover all funds and investment activities
under the direction of the City Council and are invested in accordance
with the City of Crystal Lake Investment Policy. The investments of
bond proceeds are further restricted by the provisions of relevant
bond documents. The Investment Policy delegates management responsibility
for the investment program to the Finance Director. In the absence
of the Finance Director, the City Manager shall be authorized to manage
investments.
(b)
A transfer of funds from an investment/trust account to another
City account for the purpose of investing or funding the operating
account, when authorized by one of the City officials or employees
listed above may be processed by the following: Assistant Director
of Finance or Accountant.
R.
Pass-through contracts. Pass-through contracts are contracts that
are entered into by the City, where City obligations for payment pursuant
to such contracts are paid entirely by other entities or persons.
Except as may be required pursuant to the provisions of 65 ILCS 5/8-9-1,
the City Manager, or his/her designee, may award and execute all pass-through
contracts, regardless of price, for supplies, equipment, services
or construction which are funded entirely by non-City entities or
persons without the expenditure of City funds or commitment to future
City funds, provided that, prior to the execution of the contract,
a commitment for payment from the funding source is obtained through
a funding agreement or a deposit and reimbursement agreement.
A.
The bills list is an order by which the City Council authorizes the
bank or other depository of City funds to pay a particular sum of
money. If funds are available for the payment of an approved bill,
a check or electronic transfer is created directing the bank or depository
of the City funds to pay the funds to the payee.
B.
Checks or electronic transfers will be distributed in accordance
with applicable City policies. Checks will not be distributed until
two of the following City officials or staff members have approved
them: City Manager, City Clerk, Director of Finance, and Assistant
Director of Finance. Checks issued in amounts exceeding $25,000 will
not be distributed until City Council approval and then with the approval
of two of the City officials or staff members listed in this subsection.
C.
Exceptions to this requirement include payments for the following
items: utilities and debt service trustee payments. Personnel benefits
are included on the bills list following distribution of payments.
