HomeMy WebLinkAboutResolution #4013 - intergovernmental agreement with the illinois office of the comptrollers regarding access to the comptrollers local debt recovery program RESOLUTION NO. ~7` T ~ ~
A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BY AND
BETWEEN THE ILLINOIS OFFICE OF THE COMPTROLLER AND THE CITY OF
CANTON REGARDING ACCESS TO THE COMPTROLLER'S LOCAL DEBT
RECOVERY PROGRAM.
WHEREAS, both the State of Illinois and the City of Canton have a responsibility to
collect debts owed to its respective public body; and
WHEREAS, the State of Illinois offers a system known as the Comptroller's Offset
System for collection of debt owed to the State by persons receiving funds from the State; and
WHEREAS, the Illinois General Assembly provided the ability of municipalities to
utilize the system when it amended Section 10.05 and added Section 10.05(d) to the State
Comptroller Act; and
WHEREAS, the State of Illinois and the City of Canton are empowered by the Illinois
Constitution (Illinois Constitution Article 7, Section 10), Section 3 of the Intergovernmental
Cooperation Act (5 ILCS 220/3), and Section 10.05(d) of the State Comptroller Act (15 ILCS
405/10.05(d)) to contract with each other in any manner not prohibited by law; and
WHEREAS, the finance committee of the City of Canton has determined that it is
necessary and in the best interest of the City of Canton to enter into said intergovernmental
agreement with the State for collection of unpaid utility bills; and
WHEREAS, the City Council of the City of Canton has made a similar determination.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF CANTON, ILLINOIS, AS FOLLOWS:
1. That the agreement attached hereto and incorporated herein as Exhibit "A" is hereby
approved by the Canton City Council.
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2. That the Mayor is hereby authorized and directed to execute said Agreement on behalf of
the City of Canton.
3. Access to the Comptroller's Local Debt Recovery Program will be managed and
maintained through the City Treasurer's Office.
4. That this Resolution shall be in full force and effect immediately upon its passage by the
City Council of the City of Canton, lllinois, and approval by the Mayor thereof.
PASSED by the City Council of the City of Canton, Illinois at a regular meeting this day
of December, 2012 upon a roll call vote as follows:
AYES:
NAYS:
ABSENT: APPROVED:
Kevin R. Meade, Mayor
TTES
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Q~~t~.
iana Pavley, Ci Clerk
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INTERGOVERNMENTAL AGREEMENT
BY AND BETWEEN
THE ILLINOIS OFFICE OF THE COMPTROLLER
AND
THE CITY OF CANTON
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 Canton (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.O5d
to the State Comptroller Act [P.A. 97-632; 15 ILCS 405/10.05 and 10.O5d];
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.O5d of the State Comptroller Act (hereinafter, "the Act") [15 ILCS
405/10.O5d] 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 10.05 of the Act [15 ILCS
405/10.05] and the authority for entering into this Agreement is granted under Section
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10.O5d of the Act [15 ILCS 405/10.O5d], Section 3 of the Intergovernmental Cooperation
Act [5 ILCS 220/3], and Article VII of the Illinois Constitution [Ill. 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.O5d of the Act [15 ILCS 405/10.05
and 10.O5d] 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.
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;
(vii) a statement as to the outcome of any hearings or other
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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 must, 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 (See Appendix A).
(b) Only debts finally determined as currently due and payable 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 forms provided by
the Comptroller and shall contain a signature sample of the
person(s) to whom the delegation is made.
(e) For purposes of this Agreement, "chief officer of the local unit"
means the Mayor.
4. Notification of Chan~e 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
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ability for the debt to remain on the System, as provided for in
Article III(A)(1)(b) of this Agreement.
B. Operational Requirements. Upon receiving a data file from the chief officer
pursuant to the terms of this this Agreement, IOC will perform a match with the
local unit's debt file using a debtor's social security number, taxpayer
identification number, name, address, or other unique identifier. The chief officer
will receive a weekly file from IOC indicating the matches, at which time the
local unit will update its debtor records. The chief officer will 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.
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.
2. Fee. A fee shall be charged to the debtor in order to recover the cost to
IOC for administrating the System. The fee shall be per payment
transaction and shall be $15, unless the payment is for an amount less than
$30, in which case the fee shall be equal to the amount offset. 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
(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 infortnation 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.
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
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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: 309-647-0288.
7. Debt Priorities
(a) If a debtor has more than one local unit debt, the debt with the
oldest date of delinquency shall be offset first.
(b) Any debt that is less than or equal to $9.99 which is placed or
remains on the System will not be offset and will not be paid to the
local unit until such time as the balance owed to the local unit by
the debtor exceeds $9.99.
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 if 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.
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
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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
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: Ray Marchiori, Director - Department of Government and Community
Affairs
2. Local Unit: City of Canton, James W. Snider, Administrator
Article VIII - Contacts
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The points of contacts for this Agreement are:
IOC: Alissa Camp, General Counsel
Illinois Office of the Comptroller
325 West Adams
Springfield, Illinois 62704
Phone: 217/782-6000
Fax: 217/782-2112
E-mail: CampAJ@mail.ioc.state.il.us
Local Unit: Chrissie L. Peterson, City Attorney
City of Canton
2 N. Main Street
Canton, Illinois 61520
Phone: 309-647-2738
Fax: 309-647-2348
E-mail: cpeterson@cantoncityhall.org
Article IX - Acceptance of Terms and Commitment
The signing of this document by authorized officials forms a binding commitment
between IOC and City of Canton. 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]
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IN WITNESS WHEREOF, the Illinois Office of the Comptroller and City of Canton by
the following officials sign their names to enter into this agreement.
ILLINOIS OFFICE OF THE COMPTROLLER
By: Date:
Name: Judy Baar Topinka
Title: Comptroller
CITY OF CANTON
By: Date:
Name: Kevin R. Meade
Title: Mayor
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Appendix A
~ g - STATE ~F ILLIN015
~ ~ EOMPTROLLER
JUDY BAAR TOPINKA
Involuntary Withholding Tape/File Certification Form
Local Unit Name•
Tape #/File Type:
Record Count:
Dollar Amount:
Please mark the appropriate box:
Q Add Tape/File
• The debtar(s) has (have) been sent a notice that a claim has been established against said
person thus giving the debtor the opportunity to appeal the determination of the existence
and amount of the claim(s).
• No hearing(s) was (were) reyuested or a hearing(s) was (were) held and the result(s) was
(were) that the claim(s) was (were) found to be valid in the amount(s) referenced in the
attached record.
• The date(s) of the final determination of the debt(s) for each claim was prior to the date of
submittal of the claim to IOC for Local Debt Recovery purposes.
0 Change Tape/File
• All change transactions contained on the enclosed tape/file meet the criteria for inclusion in
the Local Debt Recovery Program.
0 Delete Tape/File
• All claims contained on the enclosed tape/file no longer meet the criteria for inclusion in
the Local Debt Recovery Program, and should be removed from the Program.
I, , do hereby certify that all of the debts included on the
tape/file are in compliance with the requirements of the State Comptroller Act [ 15 ILCS 405] and the
Intergovernmental Agreement entered into between the above named local unit and the Illinois Office of
the Comptroller. If I am submitting a facsimile or email signature, I hereby certify by so filing that the
original signed document exists in my possession.
Authorized Signature: Date:
Local Unit: Phone
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NON-DISCLOSURE AGREEMENT
It is understood and agreed to that the Illinois Office of the Comptroller (hereinafter referred to
as "the Discloser") and The City of Canton (hereinafter referred to as "the Recipient") would like
to exchange certain information that is considered confidential. To ensure the protection of such
information and in consideration of the agreement to exchange said information, the parties agree
as follows:
1. The confidential information to be disclosed by the Discloser under this Agreement
("Confidential Information") can be described as and includes:
The executable package (titled "LDRP FDA.msi" and "Setup.exe"), any source
code that may derive from the executable package, any help files or associated
literature, and/or any other information obtained as a direct result of taking receipt
of the executable package from the discloser.
In addition to the above, Confidential Information shall also include, and the Recipient
shall have a duty to protect, other confidential and/or sensitive information which is (a)
disclosed by Discloser in writing and marked as confidential (or with other similar
designation) at the time of disclosure; and/or (b) disclosed by Discloser in any other
manner and identified as confidential at the time of disclosure and is also summarized
and designated as confidential in a written memorandum delivered to Recipient within
thirty (30) days of the disclosure.
2. Recipient shall use the Confidential Information only for the purpose of participating in
the Local Debt Recovery Program.
3. Recipient shall limit disclosure of Confidential Information to within its own
organization, and only to its directors, officers, and/or employees having a need to know
and shall not disclose Confidential Information to any third party (whether an individual,
corporation, or other entity) without the prior express written consent of the Discloser.
4. This Agreement imposes no obligation upon the Recipient with respect to any
Confidential Information (a) that was in Recipient's possession before receipt from the
Discloser; (b) is or becomes a matter of public knowledge through no fault of the
Recipient; (c) is rightfully received by Recipient from a third party not owing a duty of
confidentiality to the Discloser; or (d) is disclosed without a duty of confidentiality to a
third party by, or with the authorization of, the Discloser.
5. The Discloser warrants that it has the right to make the disclosures under this Agreement.
6. This Agreement shall not be construed as creating, conveying, transferring, granting or
conferring upon the Recipient any rights, license or authority in or to the information
exchanged, except the limited right to use Confidential Information specified in
paragraph 2. Furthermore and specifically, no license or conveyance of any intellectual
property rights is granted or implied by this Agreement.
7. Neither party has an obligation under this Agreement to purchase any service, goods, or
intangibles from the other party. Furthermore, both parties acknowledge and agree that
the exchange of information under this Agreement shall not commit or bind either party
to any present or future contractual relationship (except as specifically stated herein), nor
shall the exchange of information be construed as an inducement to act or not to act in
any given manner.
8. Neither party shall be liable to the other in any manner whatsoever for any decisions,
obligations, costs or expenses incurred, changes in business practices, plans,
arganization, products, services, or otherwise, based on either party's decision to use ar
rely on any information exchanged under this Agreement.
9. If there is a breach or threatened breach of any provision of this Agreement, it is agreed
and understood that Discloser shall have no adequate remedy in money or other damages
and accordingly shall be entitled to injunctive relief; provided however, no specification
in this Agreement of any particular remedy shall be construed as a waiver or prohibition
of any other remedies in the event of a breach or threatened breach of this Agreement.
10. This Agreement states the entire agreement between the parties concerning the disclosure
of Confidential Information and supersedes any prior agreements, understandings, or
representations with respect to the disclosure of this specific confidential information.
Any addition or modification to this Agreement must be made in writing and signed by
authorized representatives of both parties. This Agreement is made under and shall be
construed according to the laws of the State of Illinois, U.S.A. In the event that there is a
breach of this agreement, any and all disputes must be settled in a court of competent
jurisdiction in the circuit court of Sangamon County, State of Illinois, U.S.A.
1 l. This Agreement is supplemental to, and does not in any way modify, amend, or replace,
any Intergovernmental Agreement between the two parties pertaining to participation in
the Local Debt Recovery Program. Furthermore, the End User License Agreement
("EULA") accompanying the installation of the above referenced executable package is
in addition to, and will not replace, modify, or amend, this Agreement. Any
inconsistencies between the EULA and this Agreement shall be reconciled and governed
by the terms set forth in this Agreement.
12. If any of the provisions of this Agreement are found to be unenforceable, the remainder
shall be enforced as fully as possible and the unenforceable provision(s) shall be deemed
modified to the limited extent required to permit enforcement of the Agreement as a
whole.
WHEREFORE, the parties acknowledge that they have read and understand this Agreement
and by affixing their signatures to this document, hereby voluntarily accept the duties and
obligations set forth herein.
[Signature Page Follows]
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RECIPIENT OF CONFIDENTIAL INFORMATION - THE CITY OF CANTON
Name: Kevin Meade
Title: Mayor
Signature: ~ . Date: l y~/Z
DISCLOSER - ILLINOIS OFFICE OF THE COMPTROLLER
Name: Judy Baar Topinka
Title: Comptroller
Signature: Date:
INTERGOVERNMENTAL AGREEMENT
BY AND BETWEEN
THE YLLINOIS OFFICE OF THE COMPTROLI.ER
AND
THE CITY OF CANTON
REGARDING ACCESS TO THE COMPTROLLER'S LOCAL DEBT RECOVERY
PROGRA.M
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 Canton (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 nantax
debts owed to the na.med 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 coilect
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.O5d
to the State Comptroller Act [P.A. 97-632; 15 ILCS 405/10.05 and 10.O5d];
WHEREAS, IOC and the local unit are empowered under the Illinois Constitution [Ill.
Const., Art. VII, Sec. 10], Section 3 of the Intergovemmental Cooperation Act [5 ILCS
220/3], and Section 10.O5d of the State Comptroller Act (hereinafter, "the Act") [15 ILCS
405/10.O5d] to cantract 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 10.05 of the Act [1 S ILCS
405/10.05] and the authority for entering into this Agreement is granted under Section
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10.O5d of the Act [15 ILCS 405/lO.OSd], Section 3 of the Intergovernmental Cooperation
Act [5 ILCS 220/3), and Article VII of the Illinais Constiturion [Ill. Const., Art. VII, Sec.
10].
Article III - Stxte Payment Offset Requirements and Operat~ons
A. Legal Reauirements. The offset of State payments shall be conducted pursuant to
the authority granted in Section 10.05 and 10.O5d of the Act [15 ILCS 405/10.05
and 10.O5d] and the re~uirements 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 thau 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
detennination may be placed or may remain on the System.
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 aad 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 attributahle;
(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;
(vii) a statement as to the outcome of any hearings or other
4
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 heazd.
(c) The local unit is required to provide the debtor with information
about a procedure to challenge the existence, arnount, 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 must, at the time the debt is
referred, certify lhat the d~bt is E~ast due and legally enforceable in
the amount stated, ai~d that there is no lega] bai• to collection by
State payment offset (See ApE~endix A).
(b) O»ly debts tinally determined as currentl~~ due and payable inay be
certified to IOC as a ciaim ior offset.
(c) The chief officer of the local unit may delegate to a responsible
person or persons the authority to execute the state?nent of the
claim required by the Agreement.
(d) This delegation of authoi•ity shall be made on forms provided by
the Comptroller and shall contain a signature sample of the
person(s) to whom the delegation is made.
(e) For purposes of this Agreement only, "cllief officer of the local
unit" means the City Treasurer.
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 af a
bankruptcy petition, the death of the debtor, or the expiration of the
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ability for the debt to remain on the System, as provided for in
Article IIT(A)(1)(b) of tlus Agreement.
B. Operatianal ReQuirements. Upon receiving a data file from the chief officer
pursuant to the terms of this this Agreement, IOC will perform a match with the
local unit's debt file using a debtor's social security number, taxpayer
identification number, name, address, or other unique identifier. The chief off'icer
will receive a weekly file from IOC indicating the matches, at which time the
local unit will update its debtor records. The chief officer will 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 uni.t.
1. Technical Requirements. IOC agrees to work with the local unit to
facilitate information and data pmcedures as provided for in this
. Agreement. The local unit agrees to adhere to the standards and practices
of IOC when transmitting and receiving data.
2. Fee. A fee shall be charged ta the debtor in order to recover the cost to
IOC for administrating the System. The fee shall be per payment
transaction and shall be $15, unless the payment is for an amount less than
$30, in which case the fee shall be equal to the amount offset. The fee wili
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 pursua.nt to Article III
(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 deternune 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 I4C
may request and obtain from the local unit and the debtor subject to the
of~set. 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 wut an additional siacty (60) day extension for
tirne to respond.
5. IOC Hearin~ 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
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by the Hearing Officer shall be binding on the local unit and shall be the
final determinarion 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. Loca1 Unit Call Center. The local unit hereby agrees to provide a working
phone number which IOC will furnish to persons offset under ttus
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: 309-647-0288.
7. Debt Priorities
(a) If a debtor has more than one local unit debt, the debt with the
oldest date of delinquency shall be offset first.
(b) Any debt that is less than or equal to $9.99 which is placed or
remains on the System will not be offset and will not be paid to the
local unit until such time as the balance owed to the local unit by
the debtor exceeds $9.99.
8. Transfer of Payment. Transfer of payment by IOC to the local unit sha11
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. Loca! Unit Refunds. The local unit is responsible for refunding monies to
the debtor if 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 pa.yment has not yet been
made to the local unit.
Article IV - Permiasibtc 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
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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
urut 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 inforniation.
The parties may use information in any litigation involving the parties, when such
information is r~levant to the litigation.
Article V- Term of the Agreemeat 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 ternunate this Agreement by
giving the other pariy 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 LiabiGty 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
sha11 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 Resolntion
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 resalve any matters that arise during the development, design and
implementation of the program. If an issue cannot be resolved informally by mutual
agreement of staffpersonnel, 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: Ray Marchiori, Director - Department of Gavemment and Community
Af~airs
2. Local Unit: City of Canton, James W. Snider, Admuustrator
Article VIII - Contact~
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The points of contacts for this Agreement are:
IOC: Alissa Camp, General Counsel
Illinois Office of the Comptroller
325 West Adams
Springfield, lllinois 62704
Phone: 217/782-6000
Fax:217/782-2112
E-mail: CampAJ@mail.ioc.state.il.us
Local Unit: Chrissie L. Peterson, City Attomey
City of Canton
2 N. Main Street
Canton, Illinois 61520
Phone: 309-647-2738
Fax: 309-647-2348
E-mail: cpeterson@cantoncityhall.org
Article IX - Acceptance of Terms and Commitment
T'he signing of this document by authorized officials forms a binding commitment
between IOC and City of Canton. 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]
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IN WITNESS WHEREOF, the Illinois Office of the Comptroller and City of Canton by
the following officials sign their names to enter into this agreemeat.
ILLINOIS OFFICE OF THE COMPTROLLER
By: Date:
Name: dy Baar Topinka
Title: Comptroller
CITY OF CANTON
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, f - ~ g 1~..
sy: " , " L,L ~ nat~: ~ a . ~ -
T r
Name: Kevin R Meade
Tide: Mayor
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