AGENDA RULES MEETING OF THE BOARD OF TRUSTEES VILLAGE OF PARK FOREST, COOK AND WILL COUNTIES, ILLINOIS. Village Hall 7:00 p.m.

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1 AGENDA RULES MEETING OF THE BOARD OF TRUSTEES VILLAGE OF PARK FOREST, COOK AND WILL COUNTIES, ILLINOIS Village Hall 7:00 p.m. October 5, 2015 Roll Call 1. Increase in Authorization for 2015 Asphalt Restoration Program 2. An Ordinance Authorizing Acceptance of a Deed in Lieu of Foreclosure for the Property at 246 Allegheny Street 3. Illinois Comptroller s Local Debt Recovery Program Mayor s Comments Manager s Comments Trustee s Comments Attorney s Comments Clerk Comments Audience to Visitors Adjournment Agenda Items are Available in the Lobby of Village Hall and on the Village website Any individual with a disability requesting a reasonable accommodation in order to participate in a public meeting should contact the Village Manager s Office at least 48 hours in advance of the scheduled meeting. The Village Manager s Office can be reached via telephone at (708) or (708) or via at sblack@vopf.com. Every effort will be made to allow for meeting participation.

2 DATE: September 29, 2015 AGENDA BRIEFING TO: FROM: RE: Mayor John Ostenburg Board of Trustees Nicholas Christie Assistant Director of Public Works/Village Engineer Increase in Authorization for 2015 Asphalt Restoration Program BACKGROUND/DISCUSSION: On Wednesday, May 13, 2015 at 3:00 p.m., the Department of Public Works opened 4 bids for the 2015 Asphalt Restoration Program. Pavement Systems, located in Blue Island, IL, was the lowest bidder in the amount of $62, dollars, see attached bid tab. On Tuesday, May 26 th, 2015, the Village Board approved the contract with a 10% contingency for a final authorization of $68, This contract is a yearly maintenance program that provides asphalt patching for water main breaks, sewer repairs, and general street patches. The contractor performs work once we have accumulated over 150 S.Y., which is equivalent to a day s worth of work. The quantities in the original authorization were based upon prior year s averages. However two things have changed this summer that were not accounted for in the original authorization: 1) With the shift to the sewer fund, DPW has increased the amount of storm sewer repair work it does. This necessitates additional asphalt patching following a repair. 2) This year, DPW has experienced an increase in larger water main breaks within the roadway that necessitated larger patches. We are currently reaching our authorization amount with the work that has already been done with Pavement Systems. However, there is still approximately $35,000 worth of water and sewer asphalt repairs that need to be patched this fall and we anticipate an additional $35,000 in the spring. Adequate money does exist within Water and Sewer Funds for these repairs. RECOMMENDATION: Increase the Authorization for the 2015 Asphalt Restoration Program from $68, to $138, for additional pavement patching as determined by the Village Engineer under the bid contract unit prices previously authorized the Village Manager with Pavement Systems. SCHEDULE FOR CONSIDERATION: This item will appear on the Agenda of the Rules meeting of October 5, 2015 for discussion.

3 2015 Asphalt Maintance Program Bid Tabulation Village of Park Forest 2015 Asphalt Maintance Program Park Forest Estimate Pavement Systems, Inc. Matthew Paving, Inc. Iroquois Paving Corporation Gallagher Asphalt Corp. May 13, 2015, 3:00 p.m. Blue Island, Illinois Oak Lawn, Illinois Watseka, Illinonis Thornton, Illinois UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL PRICE PRICE PRICE PRICE PRICE 1 Class D Patch 5 1/2" S.Y. $ $ 53, $ $ 48, $ $ 57, $ $ 60, $98.00 $53, Class D Patch 4" S.Y. $ $ 17, $ $ 13, $ $ 19, $ $ 40, $89.00 $17, AS CORRECTED BID TOTAL $ 70, $ 62, $ 76, $ 100, $71, BID AS READ $ 81, UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL PRICE IF UNDER 150 YARDS PRICE PRICE PRICE PRICE PRICE 1 Class D Patch 5 1/2" S.Y. $ $ N/A $ Class D Patch 4" S.Y. $ $ N/A $ * MIN OF 100 C.Y. * MIN OF 75 C.Y.

4 AGENDA BRIEFING DATE: September 29, 2015 TO: FROM: RE: Mayor Ostenburg Board of Trustees Hildy L. Kingma, AICP Director of Economic Development and Planning Ordinance Authorizing Acceptance of a Deed in Lieu of Foreclosure for the Property at 246 Allegheny Street BACKGROUND/DISCUSSION: The house on the property at 246 Allegheny Street was demolished in February 2013 using funds awarded to the Village from the Cook County Neighborhood Stabilization Program grant. The Village filed a lien on the property for $14,857 for the cost of the demolition. In addition, the property is tax delinquent and is on the 2015 tax scavenger list. The current owner of the property, Mr. Adam Piaskowy, has agreed to transfer the property to the Village, in exchange for a release of the lien. The process of obtaining a deed in lieu of foreclosure for the property will also enable the Village to extinguish the back taxes owed on the property. The property will be maintained by the Village until redevelopment of the entire Eastgate neighborhood can be planned. The Village Attorney prepared the attached Ordinance. SCHEDULE FOR CONSIDERATION: This item will appear on the Rules Board meeting agenda of October 5, 2015, for discussion.

5 ORDINANCE AN ORDINANCE AUTHORIZING ACCEPTANCE OF A DEED IN LIEU OF FORECLOSURE FOR THE PROPERTY COMMONLY KNOWN AS 246 ALLEGHENY, PARK FOREST, ILLINOIS WHEREAS, the Village of Park Forest (hereinafter Village ) is an Illinois Home Rule Municipality, pursuant to Article VII, Section 6, of the Constitution of the State of Illinois; and WHEREAS, Adam Piaskowy ( Piaskowy ) is the owner of the property commonly known as 246 Allegheny, Park Forest, Illinois, PIN No (hereinafter Property ) and legally described as follows: LOT 14 IN BLOCK 3 OF THE VILLAGE OF PARK FOREST AREA NUMBER 1, BEING A SUBDIVISION OF PART OF THE NORTHWEST ¼ AND THE NORTHEAST ¼ OF SECTION 30, TOWNSHIP 35 NORTH, RANGE 14, EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING SOUTH OF THE SOUTH RIGHT OF WAY LINE OF ELGIN, JOLIET AND EASTERN RAILROAD, ACCORDING TO THE PLAT THEREOF RECORDED IN THE RECORDER S OFFICE OF COOK COUNTY, ILLINOIS ON JUNE 25, 1951 AS DOCUMENT , IN COOK COUNTY, ILLINOIS. WHEREAS, the Village placed a lien on the Property in the amount of $14, for demolition of the structure on the Property, pursuant to Section of the Illinois Municipal Code, 65 ILCS 5/ , which lien was recorded with the Cook County Recorder of Deeds as Document No (hereinafter Lien ); and WHEREAS, the Village has filed an action in the Circuit Court of Cook County to foreclose on the Lien, which action is Cook County case number 2015 CH 6387; and WHEREAS, Piaskowy knows of the Lien and of the foreclosure action and has contacted one of the attorneys for the Village to indicate that he is willing to terminate his interest in the Property by tendering to the Village a deed in lieu of foreclosure in exchange for the Village relieving him from any and all personal liability for payment or performance or other obligations related to the Lien; and 2

6 WHEREAS, the Village desires to accept a deed in lieu of foreclosure from Piaskowy by warranty deed, subject to any other claims or liens affecting the Property, in substantially the form attached hereto as Exhibit A; and WHEREAS, general taxes and assessments for the years 2011, second installment, 2012, 2013, 2014 and subsequent years which are not yet due and payable, are liens on the Property pursuant to the Illinois Property Tax Code, but pursuant to Section of the Property Tax Code, 35 ILCS 200/21-95, when a municipality acquires property by a deed in lieu of foreclosure of a lien, all due or unpaid property taxes and existing liens for unpaid property taxes imposed or pending under any law or ordinance of the State of Illinois or any of its political subdivisions become null and void; and WHEREAS, the Mayor and the Board of Trustees of the Village have determined that it is advisable to acquire the Property by deed in lieu of foreclosure, and that the Property is being acquired for a public purpose pursuant to Section 2-2(b) of the Village Code, and pursuant to the Village s home rule authority. NOW, THEREFORE, BE IT ORDAINED, by the Mayor and Board of Trustees of the Village of Park Forest, Cook and Will Counties, Illinois, in the exercise of the Village s home rule powers, as follows: SECTION 1: The foregoing recitals are incorporated into this Section 1 by reference as though fully set forth herein. SECTION 2: The Mayor and the Board of Trustees of the Village hereby determine that it is in the best interests of the Village to acquire the Property via deed in lieu of foreclosure for public purposes as may hereinafter be determined. 3

7 SECTION 3: The Village Manager or his designee is hereby authorized and directed to accept the deed in lieu of foreclosure and to further execute any and all documents necessary to effectuate acquisition of the Property via deed in lieu of foreclosure. SECTION 4: After acquisition of the Property, the Village Manager or his designee is hereby authorized and directed to take all steps advisable or necessary to void the taxes on the Property pursuant to Section of the Property Tax Code, 35 ILCS 200/ SECTION 5: This Ordinance shall be in full force and effect upon its passage and approval. PASSED this day of, APPROVED: ATTEST: MAYOR CLERK 4

8 EXHIBIT A WARRANTY DEED 5

9 WARRANTY DEED (deed in lieu of foreclosure) Property Address: 246 Allegheny Park Forest, IL PIN: Return To: Village of Park Forest 350 Victory Drive Park Forest, IL Send Subsequent Tax Bills To: Village of Park Forest 350 Victory Drive Park Forest, IL THE ABOVE SPACE FOR RECORDER S USE ONLY Adam J. Piaskowy ( Grantor ) whose address is, in consideration of the payment of Ten and no/100ths Dollars ($10.00), and the release of Grantor by Grantee from personal liability for the lien recorded with the Cook County Recorder as Document No , and for other good and valuable consideration in hand paid, the adequacy and sufficiency of which are hereby acknowledged, does hereby sell, grant, and convey to Grantee the vacant real property commonly known as 246 Allegheny, Park Forest, IL, PIN No and located in the Village of Park Forest, County of Cook, State of Illinois, and legally described as follows: LOT 14 IN BLOCK 3 OF THE VILLAGE OF PARK FOREST AREA NUMBER 1, BEING A SUBDIVISION OF PART OF THE NORTHWEST ¼ AND THE NORTHEAST ¼ OF SECTION 30, TOWNSHIP 35 NORTH, RANGE 14, EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING SOUTH OF THE SOUTH RIGHT OF WAY LINE OF ELGIN, JOLIET AND EASTERN RAILROAD, ACCORDING TO THE PLAT THEREOF RECORDED IN THE RECORDER S OFFICE OF COOK COUNTY, ILLINOIS ON JUNE 25, 1951 AS DOCUMENT , IN COOK COUNTY, ILLINOIS. This Warranty Deed is an absolute conveyance and grant of all of Grantor s right, title, and interest in the above-described real property and is not intended as a mortgage, trust conveyance, or security of any kind. Grantor further declares that (a) this conveyance is freely and fairly made, executed, and delivered and made with the advice, or opportunity for advice, of legal counsel of Grantors selection; and (b) that fair and adequate consideration has been given for Grantor s waiver of all redemption and cure rights permitted by law. 6

10 By accepting this Warranty Deed as a deed in lieu of foreclosure, the Grantee is entitled to make null and void all real estate taxes and tax liens pursuant to Section of the Property Tax Code. (35 ILCS 200/21-95). IN WITNESS WHEREOF, Grantor has executed this Warranty Deed as of the day of, State of Wisconsin ) County of ) SS GRANTOR: Adam Piaskowy I, the undersigned, a Notary Public in and for said County and State aforesaid, DO HEREBY CERTIFY that Adam Piaskowy, personally known to me to be the same person whose name subscribed to the foregoing instrument, appeared before me this day in person, and acknowledged that she signed, sealed, and delivered the said instrument as her free and voluntary act, for the uses and purposes therein set forth, including the release and waiver of the right of homestead. Given under my hand and official seal, this day of, Impress seal here NOTARY PUBLIC AFFIX TRANSFER STAMPS ABOVE Or This transaction is exempt from the provisions of the Real Estate Transfer Tax Act under Paragraph b, Section 4 of said Act. Date: This instrument was prepared by: M. Neal Smith Robbins, Schwartz, Nicholas, Lifton & Taylor, Ltd Bormet Drive, Suite 201 Mokena, IL

11 AGENDA BRIEFING TO: FROM: Mayor John A. Ostenburg Board of Trustees Peter J. Green, Chief of Police DATE: September 29, 2015 RE: Illinois Comptroller s Local Debt Recovery Program BACKGROUND/DISCUSSION: The Village of Park Forest has an opportunity to partner with the Illinois Comptroller s Office to collect debts owed the Village as a result of Public Act Public Act allowed local governments to participate in the Comptroller s Offset System through the creation of the Local Debt Recovery Program. This program can collect debts such as parking tickets, fines, permits and utility bills. Initially the program will be used to collect debts related to police and building department tickets and fines that have gone unpaid and have been turned over to our collections company, currently Municipal Collections of America. The Debt Recovery Program will only seek recovery of debt that is less than seven (7) years old. As of September 24, 2015 Park Forest has qualifying debt less than seven years old on file with the Municipal Collections of America in the amount of $2,303, that would be subject to recovery. The attached Intergovernmental Agreement allows the Village to begin sending data files of outstanding debts to the Illinois Comptroller s Office. Prior to the Comptroller s Office issuing an income tax refund, vendor payment, payroll checks or lottery winnings distribution, it will match the Village s data to its own files. Any positive matches will have the amount owed to the Village of Park Forest plus a $20 administrative fee deducted and deposited in the Comptroller s Debt Recovery Trust Fund. The debtor will be provided with a written notice of the action and has 60 days to protest the deduction. If no protest is made at the end of the 60-day period, the amount owed will be transferred to the Village of Park Forest. The $20 administrative fee is retained by the Illinois Comptroller s Office. Over 250 government entities state-wide have elected to be part of the initiative. SCHEDULE FOR CONSIDERATION: This item will appear on the Agenda of the October 5, 2015 Rules Meeting for Board consideration.

12 RESOLUTION NO. A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE ILLINOIS COMPTROLLER AND THE VILLAGE OF PARK FOREST, ILLINOIS REGARDING ACCESS TO THE COMPTROLLER S LOCAL DEBT RECOVERY PROGRAM WHEREAS, the Village of Park Forest (the Village ) is a home rule unit and has jurisdiction over matters pertaining to its government and affairs; and WHEREAS, the State of Illinois Office of the Comptroller ( IOC ), an agency of the State of Illinois, and the Village of Park Forest an Illinois municipality and unit of local government, have a responsibility to collect debts owed to its respective public bodies; and WHEREAS, the IOC operates a system knows as the Comptroller s Offset System ( the System ), for collection of debt owed to the State of Illinois by persons receiving payments from the State; and WHEREAS, the Illinois General Assembly specifically provided for the ability of the Village to utilize the System when it amended Section and added Section 10.05d to the State Comptroller Act (P.A , 15 ILCS 405/10.05 and 10.05d); and WHEREAS, it is necessary to enter into an agreement pursuant to the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.); and NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the Village of Park Forest, Cook and Will Counties, Illinois, in the exercise of their home rule authority directs and authorizes the Village Manager to execute the Intergovernmental Agreement attached hereto, which is hereby approved as to form, between the Village and the Office of the Comptroller of the State of Illinois regarding the Village having access to the Comptroller s Local Debt Recovery Program. ADOPTED this day of, APPROVED: ATTEST: John A. Ostenburg, Mayor Sheila McGann, Village Clerk

13 INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN THE ILLINOIS OFFICE OF THE COMPTROLLER AND THE VILLAGE OF PARK FOREST 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 Village of Park Forest (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 and added Section 10.05d to the State Comptroller Act [P.A ; 15 ILCS 405/10.05 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 II Authority The authority for State payment offset is granted under Section 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 [Ill. Const., Art. VII, Sec. 10]. 1

14 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 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) (b) (c) (d) 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. No debt which is more than 7 years past the date of final determination may be placed or may remain on the System. 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. 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) (ii) (iii) (iv) (v) (vi) the name and address and/or another unique identifier of the person against whom the claim exists; the amount of the claim then due and payable to the local unit; the reason why there is an amount due to the local unit (i.e., tax liability, overpayment, etc.); the time period to which the claim is attributable; the local entity to which the debt is owed; 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

15 (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) (c) 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. 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) (b) (c) (d) (e) (f) 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. Only debts finally determined as currently due and payable to the local unit may be certified to IOC as a claim for offset. 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. This delegation of authority shall be made on either electronic or paper based forms provided by the Comptroller. For purposes of this Agreement, chief officer of the local unit means the Chief of Police. 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 3

16 (a) (b) 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. 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. 5. Notification of Change in the Chief Officer (a) (b) (c) 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. 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. 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 4

17 (B)(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. 5. 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: Debt Priorities. If a debtor has more than one local unit debt, the debt with the oldest date of entry on the System shall be offset first. 8. 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

18 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 thirdparty 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 party 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 VII Issue Resolution 6

19 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: 1. IOC: Robert Dulski, Director Department of Government and Community Affairs 2. Local Unit: Peter Green, Chief of Police - Village of Park Forest Article VIII Contacts The points of contacts for this Agreement are: IOC: Local Unit: Alissa Camp, General Counsel Illinois Office of the Comptroller 325 West Adams Springfield, Illinois Phone: 217/ Fax: 217/ CampAJ@mail.ioc.state.il.us Felicia Frazier, Village Attorney Odelson & Sterk Law Firm 3318 W. 95th St. Evergreen Park, IL Phone: attyfrzier@aol.com Article IX Acceptance of Terms and Commitment The signing of this document by authorized officials forms a binding commitment between IOC and the Village of Park Forest. 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

20 IN WITNESS WHEREOF, the Illinois Office of the Comptroller and the Village of Park Forest by the following officials sign their names to enter into this agreement. ILLINOIS OFFICE OF THE COMPTROLLER By: Date: Name: Leslie Geissler Munger Title: Comptroller VILLAGE OF PARK FOREST By: Date: Name: John A. Ostenburg Title: Village President 8

21 Local Debt Recovery Program STATE OF ILLINOIS COMPTROLLER S OFFICE

22 LDRP: AN OVERVIEW The Local Debt Recovery Program (LDRP) offers local government entities an opportunity to partner with the Illinois Office of the Comptroller (IOC) to collect unpaid debt such as parking tickets, utilities, water and sewer bills, traffic fines, ordinance violations, tuition and student fees, and other fines and fees. A local government entity may participate in the LDRP by entering into an intergovernmental agreement (IGA) with the IOC.

23 LDRP: AN OVERVIEW The IOC collects or intercepts state payments to individuals and entities that owe the local government money. The IOC forwards the collected funds to the local government entity after the expiration of a set protest period. No fees are charged to the local government and no taxes are imposed on the local government constituents. The program is funded by an administrative fee charged to the individual owing the debt.

24 LDRP: WHO CAN PARTICIPATE? Counties Municipalities Townships Clerks of Circuit Courts Community colleges Housing authorities Other local government entities authorized by statute

25 HOW LDRP WORKS The Comptroller s office matches a local government entity s unpaid debt records against the Comptroller s payment records. Once matched, a debtor is then provided a notice and given 60 days to protest the offset with the Comptroller s office. If no protest is made during the 60-day period, the amount owed is transferred to the entity. Payments are made to the local government on a weekly basis.

26 WHERE DOES THE MONEY COME FROM? Tax Refunds (100% of an individual or entity s tax refund) Commercial Payments (100% of an individual s or entity s net commercial payment, with the exception of only 25% of an individual s net contractual payment for personal services) Salary Payments (25% of an individual s net paycheck) Lottery winnings (100% of an individual s or entity s net lottery winnings)

27 SOURCE OF OFFSETS % 70% 60% 50% 40% 30% 20% 10% 0% Tax Refunds Commercial Payments Salary Payments Lottery and other

28 GETTING STARTED 1. The IOC conducts an initial meeting with the local government and its involved staff, including management, finance, and IT personnel to discuss the program and the process. 2. Following the meeting, the local government provides the IOC with a preliminary test file with information on their current debtors, including name, address, Social Security or Tax ID number. 3. The IOC runs a match analysis with its database and provides to the local government a statistical report on debt records that were matched and the amount of debt the local government could possibly recover based on historical data.

29 GETTING STARTED 4. The IOC and the local government conduct a follow-up meeting to discuss an intergovernmental agreement, IT issues, and program details. 5. The local government approves an IGA with the IOC. 6. The IOC works with the local government on IT procedures including how to transmit and maintain data.

30 IDROP: Transmitting is Easy With real world input from the earliest participants, IT experts developed the web-based Illinois Debt Recovery Offset Portal (IDROP) making participation in LDRP easy. Using IDROP, local governments connect directly to IOC to submit and manage debt claims online. Instant user messaging takes the guess work out of transmitted files resulting in fewer rejected claims, and users have detailed, real-time claim records at their disposal. With the implementation of IDROP, local entity staff spends less time maintaining records in a user-friendly and secure web-based environment featuring better, updated information for reports and planning.

31 A MATCH IS MADE When a match is made, the amount owed plus a $15 or $20 administrative fee is deducted from the payment. Once the debt is deducted from the payment amount, it is deposited in the Local Debt Recovery Trust Fund along with the administrative fee. The Debtor receives notice of the withholding by mail, along with information about the protest process.

32 A MATCH IS MADE If the debtor does not protest within 60 days, the amount placed in the Debt Recovery Trust Fund will be transferred to the local government. Funds can be immediately transferred to the local government using Electronic Funds Transfer. Recovered debts will be consolidated and paid out to the local government on a weekly basis.

33 DUE PROCESS INFO Name and address or other unique identifier of the debtor The amount of the claim A description of the basis of the claim (tax liability, unpaid parking tickets, outstanding fines for ordinance violation) The time period for the claim The local government to which the debt is owed; Description of the type of notification given to the debtor and the type of opportunity to be heard Statement of the outcome of the hearing or other proceeding held or a statement that no hearing was requested The date of the final determination of the debt

34 APPEAL PROCESS When a local government debt is recovered from a state payment, the individual or entity will receive a notice by mail from the IOC informing them that they have 60 days to protest the debt. If a timely protest is received by the IOC, a hearing officer will review the protest and associated documents and issue a decision on whether or not the debt is owed. A protest will include: the reason for the protest; the amount, if any, that is due; and any other information that will show that the debt does not exist.

35 APPEAL PROCESS The IOC may request further information from the local government based on the protest, requiring the local government to respond within 60 days. The Local Government can seek a 60 day extension for: 1) actively pursuing further investigation; 2) settlement negotiations; and 3) good cause shown. If the IOC finds the debt exists, the held funds are transferred to the local government. If the IOC finds that the debt does not exist, the held funds are returned to the protestor, along with the administrative fee. *Appeals Rate is currently less than 5%

36 Q & A Q: Is there an age limit on a debt that can be collected through the program? A: 7 years.

37 Q & A Q: Is there a minimum dollar amount that can be submitted? A: $10

38 Q & A Q: Can a match be made without a SSN, TIN or EIN? A: Yes. Most matches are made without that information.

39 Q & A Q: Are any State payments exempt from the LDRP? A: Senior Circuit Breaker, Secretary of State Refund, Illinois Pre-Paid Tuition Trust Fund payments are all exempt.

40 Q & A Q: Is the LDRP really free to local governments? A: Yes, although the participation in the LDRP will involve some of the local government s staff s time to submit and maintain debtor records.

41 Q & A Q: Will LDRP payments be late like other State payment? A: NO. Matched funds are automatically transferred into the LDRP Trust Fund.

42 Thank you for attending! For questions or more information, contact: Matt Ryan