Asset Sharing Policy

Asset Sharing Guidelines

A. Objectives

1. Through collaborative efforts between all Village Departments and other external stakeholder groups (Park District, School District, County Government, etc…), Asset Sharing initiatives will be used to reduce asset redundancy and save money.

2. To increase collaboration between both internal and external agencies and improve productivity and organizational understanding.

3. Asset Sharing efforts are limited to local, regional, state and federal taxing bodies only, except as provided for specific outside groups with the approval of the Village Manager or designee.

B. Asset Sharing Considerations a. Can the asset be shared with another department within the Village or outside agency? b. Is the sharing of the asset appropriate and practical with type of asset and the department/agency for which it will be shared? c. Will the proposed partner be willing to share equally, or in part, the cost of the asset being purchased as well as the long-term operational cost once acquired?

Once an asset has been determined to be in need of replacement, the requesting department should follow the process outlined below as part of its regular evaluation. (This process would apply to new additions to the asset inventory as well).

1. Identify potential sharing partners.

2. Once a determination has been made that asset sharing is appropriate and practical, and the parties have agreed to participate in such an engagement, an Intergovernmental Agreement (IGA), Letter of Understanding (LOA) or some other written agreement should be drafted or reviewed by the Village Attorney

3. The agreement should clearly identify the responsibilities of the parties with respect to: a. Acquisition cost b. Who will perform the maintenance c. Maintenance costs allocation d. Storage e. Use and scheduling f. Accounting and budgeting g. Decommissioning and sale of the asset h. Other operational considerations.

4. Village department directors will be responsible for ensuring that this policy is communicated to all employees, particularly those with purchasing authority.

Appendix K

Change Orders

Change orders are allowed and can be expected when working on projects, however all personnel should be keenly aware of the following laws and ordinances.

Subsection 9 of Article 33E, Public Contract, of the Illinois Criminal Code (720 ILCS 5/33E-9) makes it a Class 4 felony to approve a change order for an increase or decrease in either the cost of a public contract by a total of $10,000 or more or the time of completion by a total of 30 days or more without first obtaining from the Village Board, or from a designee authorized by the Village Board, a determination in writing that (1) the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed, or (2) the change is germane to the original contract as signed, or (3) the change order is in the best interest of the unit of local government.

Subsection J. of Section 2.08.040 of the Buffalo Grove Municipal Code gives the Village Manager the authority to approve a change order to a public contract for an increase in an amount of not to exceed 10 percent of the contract amount or $10,000, whichever is less. Subsection J. of the Municipal Code also authorizes the Village manager to make a determination, based upon the above criteria in regards to the modification of the time of completion of a project by not more than 90 days.

Therefore the Village Board, pursuant to subsection 9, must make the determination in writing that one of the three requirements is applicable or designate the Village Manager as having the autho rity to make said determination as it pertains to the cost of a project.

Attached at the end of Appendix K. is a sample change order.