[HISTORY: Adopted by the City Council of the City of Crystal Lake 12-11-2017 by Ord. No. 7420. Amendments noted where applicable.]
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.
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.
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.
Claims and settlements. The City Manager is authorized to settle, approve or reject claims or litigation in an amount not to exceed $25,000.
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.
Acquisition of or disposition of real property on the City's behalf.
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.
- PUBLIC PROPERTY
- 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.
- REAL PROPERTY
- Any interest in real estate, whether the interest has been acquired by purchase, lease, license, common law or statutory dedication, gift, or possession.
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.
Standards for acquisition. The following are procedures and standards for acquisition of property:
Acquisition plan. City staff should, prior to the formal initiation of negotiations, develop a written acquisition plan. The plan should include the following elements.
Goal. Staff should explain specifically how acquiring the property will assist in accomplishing a City Council goal or Council-adopted plan.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Regulatory reporting. The City Manager is authorized to delegate signature authority to a designee for regulatory reporting.
Letters of support or opposition.
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 position taken by the Illinois Municipal League on a matter, unless the City Council has taken a contrary position.
Legislation regarding projects approved by City Council.
Items routine in nature, experienced in the normal course of conducting business of the City.
A previously approved City Council position.
The City Attorney, in consultation with the City Manager, is authorized to sign legal briefs and/or letters related to:
Legislation supporting a position taken by the Illinois Municipal League on a matter, unless the City Council has taken a contrary position.
Legislation regarding projects approved by City Council.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.