City of LaSalle Finance Committee met May 15
Here are the minutes provided by the committee:
Chairman Ptak Called the Meeting to order at 6:00pm
ROLL CALL
Present: Chairman Ptak, Aldermen Bacidore, Thompson, Reynolds, Lavieri, Jeppson, Crane, Herndon
Absent: NONE
Others Present: Finance Director John Duncan, Deputy Clerk Brent Bader, Economic Development Director Curt Bedei, Fire Chief Jerry Janick, City Treasurer Virginia Kochanowski, City Engineer Brian Brown
A quorum was present.
Moved by Alderman Lavieri and seconded by Alderman Thompson to approve the minutes from May 1, 2023.
Voice vote, all ayes. Motion carried.
Moved by Alderman Thompson and seconded by Alderman Lavieri to allow Amy Lambert from the Illinois Small Business Development Center to speak in regards to her request for a monetary donation.
Amy Lambert introduced herself as the Executive Director for the Illinois Small Business Development Center. She explained how the Small Business Development Center provides no cost confidential one on one business advice to entrepreneurs, small business owners within the Starved Rock Country Region. This region that stretches from Bureau to LaSalle County, over to Grundy and down to Livingston County. Lambert stated that since their inception in 2017, they have helped create 104 businesses in the region and have helped create 350 jobs and they are now up to $12.3 million in funding that they have brought into this region for the businesses. The Small Business Development Center receives funding from federal, state, and local dollars - Federal through the Small Business Administration, State through the Illinois Department of Commerce and Economic Opportunity and then locally through nonprofit organization called the Starved Rock Country Alliance. The Alliance is a very small organization with only eight current members on the board, and they are local business owners, municipal leaders and other stakeholders within this region that want to see the growth of entrepreneurship and small business. She described that area that the Small Business Development Center covers Princeton to Pontiac, up to Mendota, down to Minonk, and then all the way to Morris and everyone in between. Chairman Ptak asked if this center has asked other communities in the past. Lambert stated that they do ask others. Ptak also asked how she came up with the dollar amount of what to ask for as a donation.
Lambert stated that the Center has currently been asking for a minimum of $3,000 from municipalities and a top end number of $10,000 from cities if they want an office in their town.
Alderman Lavieri asked about a certain number of employees. Mrs. Lambert is the only current full-time employee.
Alderman Jeppson asked if she worked with other economic development groups. Lambert mentioned how confidently comes into play when working with other communities.
Moved by Alderman Thompson and seconded by Alderman Reynolds to approve the request for a monetary donation of $3,000 to the Illinois Small Business Development Center.
ROLL CALL
AYE: Chairman Ptak, Aldermen Bacidore, Thompson, Reynolds, Lavieri, Jeppson, Crane, Herndon
NAY: None Absent: None Abstain: None
MOTION CARRIED: 8-0
Mrs. Lambert thanked the committee for the approval of the donation and mentioned that for every dollar donated it triples the amount for their budget. The city’s donation now allows for them to have $9,000 in their budget.
Moved by Alderman Lavieri and seconded by Alderman Herndon to approve the request from Juan Torres Pomales of Citos Automotive, LLC for a Redevelopment Incentive Program Grant totaling $4,147.50 for premises located at 503 Third Street.
ROLL CALL
AYE: Chairman Ptak, Aldermen Bacidore, Thompson, Reynolds, Lavieri, Jeppson, Crane, Herndon
NAY: None Absent: None Abstain: None
MOTION CARRIED: 8-0
Alderman Ptak stated that the Finance Committee was going to table the recommendation regarding a request from Christi Pasieka of Starved Rock Rentals for a Redevelopment Incentive Program grant totaling $12,500 for premises located at 552 First Street. The committee is waiting on another bid.
Alderman Crane began the discussion in regards to the bids on the Public Works Facility project. He is familiar with both contractors and believes that they both gave out great bids. However, he has some questions because he believed there to be a committee to discuss the work that was going to be done to this new building. There has not been a meeting set to discuss these plans, but there are now bids for work. Crane thought the point of the building committee was to discuss what is best for the future of the city and the LaSalle Public Works. He is also worried that there will be an added cost for the architectural fees that he did not see listed on either bid. Chairman Ptak asked who was even on the building committee. Crane was unsure.
Chairman Ptak does understand Crane’s frustration and concerns, but does believe that they may need to go with the current specs and what has been presented to them. He also believes that they are probably getting some ideas from Supt. Watson and the other workers to get some ideas to work within the plans.
Engineer Brown stated that they did go off the current number and potential future number of employees when designing the locker/office space. He felt the footprint was then set. Brown believes the only architectural part of the design was the office area and wash drains. The other portion of the bids was replacement of the floors, repairing or updating the wall structure, and garage doors. Brown believes that both contractors were very identical in their bids. There may be an additional amount added later on one bid because he is hoping to discuss with one of the lower bid contractors about maybe going up higher with a block wall.
Finance Director Duncan spoke about the reserves in the TIF funds being about 6.5 million. He mentioned how the TIF funds do have a shelf life and are not being replenished. These TIFs do expire in the next handful off years. He wanted the committee to just understand that these funds are gone once they are spent, they do not keep growing. For this project, 40% would be coming out for the Street Department’s portion of the garage/facility, which reflects about 12-15% of the TIF funds being used. The Water Fund has some strong balances of $5.8 million. He stated how $800,000 to a million will come out of that fund which will reflect about 14% of that fund. That fund is an enterprise fund and will grow. He asks for the committee to be cognizant of water and sewer rates so they are not just hiking up the rates all the time. Duncan mentioned how the city planned on attributing $400,000 from the sewer fund for this project, which would be about 16% of that fund. This fund, however, does not have the reserve balances. He did want the committee to know that these bids would not be the whole scope of the project. There will be added costs to complete this project. These bids though would get the project started and house the things that are needed and also allows the ability to move out and free up the downtown location for the potential sale of commercial development.
Chairman Ptak mentioned how the two contractors were asked about working together and if they were OK with that. The both have worked in the past together on jobs.
Moved by Alderman Crane and seconded by Alderman Reynolds to approve the bid award of $861,581 for Scope 1A, 1B, 1C, 1D, and Scope 3 to Vissering Construction Company and bid award of $751,250 for scope 2 and Scope 4 to Tieman Builders Inc. for the 2023 New Public Works Facility project. This is subject to the signing of the company contracts.
ROLL CALL
AYE: Chairman Ptak, Aldermen Bacidore, Thompson, Reynolds, Lavieri, Jeppson, Crane, Herndon
NAY: None Absent: None Abstain: None
MOTION CARRIED: 8-0
Moved by Alderman Herndon and seconded by Alderman Lavieri to approve the bid regarding installation of an iFiber line to the new Public Works Facility.
Deputy Clerk Brent Bader did mention that this is keeping it consistent with wanting to associate all of the city’s municipal buildings with the high fiber line.
ROLL CALL
AYE: Chairman Ptak, Aldermen Bacidore, Thompson, Reynolds, Lavieri, Jeppson, Crane, Herndon
NAY: None Absent: None Abstain: None
MOTION CARRIED: 8-0
NEW BUSINESS
City Engineer Brian Brown mentioned that at a city staff meeting they were discussing how there were about 40-50 inlets that have been barricaded for months, even years. Brown asked for permission from the Mayor to get hourly rates from both Pohar and Universal to do the repairs on those inlets. Brown received a list today with all the inlets that need some type of repair and it's at about 80-100. Universal agreed to do the work, split the jobs, at Pohar’s price. This is a project that could start tomorrow if agreed upon. Brown mentioned that he will have to look at the budget but it may be around $100,000 with materials to complete this project.
Alderman Crane asked if this would include the sewer repair at the dead end on Washington. Brown mentioned that he was just made aware of this today. He will have to look into this. They received an hourly rate on a small piece of equipment for a typical inlet repair. He may have to get another hourly rate for a bigger piece of equipment if the projects entail that.
Alderman Bacidore asked if it would be better to hire an employee for this project instead of hiring out Pohar and Universal for these repairs. Finance Director Duncan mentioned that the city has recently assembled a project list and timeframe of what each project will take. He believes that this will help streamline the work and the city did just approve to hire two additional public works employees. Duncan stated that the hiring of the two employees and using the contractors will get the city back to ground zero. Alderman Crane asked Supt. Watson about what is needed also to get these inlets done and for the city to not hire out the outside contractors. Watson stated it would not be possible without them because he does not have the manpower right now. Duncan mentioned to Bacidore that supplementing the current workforce by outsourcing some things is still a financial advantage to taxpayers.
Chairman Ptak asked for a straw vote to approve outsourcing Pohar and Universal for the inlet project. All aldermen were in agreement.
There were no more questions or comments from the public.
Moved by Alderman Thompson and seconded by Alderman Reynolds to adjourn the meeting.
Voice vote, all ayes. Motion carried.
Chairman Ptak adjourned the meeting at 6:30pm
https://www.lasalle-il.gov/sites/default/files/agendas-minutes/2023-06/5-15-23.pdf
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