Friday, October 23, 2009

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http://www.daily-chronicle.com/articles/2009/10/22/28032411/index.xml

"Contracts for DeKalb alderman prompt policy talk"

October 22, 2009 8:09pm

By ELENA GRIMM - egrimm@daily-chronicle.com

DeKALB – The city is considering changes to its financial policy, months after the mayor learned a sitting alderman's masonry business won more than $50,000 in city contracts that didn't require city council approval.

The now-defunct Masonry Works LLC, owned by Third Ward Alderman Victor Wogen, won contracts on six projects in 2008 that included tuckpointing, weatherproofing and other repairs to exterior walls of downtown buildings that had been exposed from the demolition of adjacent buildings. Wogen was an alderman at the time the contracts were awarded.

Masonry Works was the low bidder on all six projects, which totaled $52,880. Each project individually cost less than $20,000. Expenditures less than $20,000 don't require authorization by the city council, but can be approved by the city manager, according to state and city law.

Mayor Kris Povlsen was an alderman in 2008 until that August, when he was appointed to fill the term vacated by Frank Van Buer, who died while in office. Current aldermen David Baker, Brent Keller, Ronald Naylor, and Bertrand Simpson also were in office in 2008.

Povlsen said Thursday that, when he learned a few months ago about the work performed by Masonry Works, he asked that the purchasing policy be reviewed by the city council.

"I don't like to give the appearance of anything that might be construed as inappropriate," Povlsen said.

The city council on Monday is scheduled to consider prohibiting or limiting work that aldermen can do for the city. Povlsen said that he would like to see an ordinance created that, at minimum, requires disclosure of funds paid to an alderman or to his or her employer for work on city projects.

Wogen competitively bid on eight projects and submitted the lowest quotes for six of those, City Manager Mark Biernacki said at a news conference Thursday afternoon.

"Our intentions were good," he said. "Do this at the lowest cost possible and do it within the law."

Wogen defended the contracts.

"We're still citizens of the community; we still have careers, we still need money," he said.

After material and labor expenses, the company made a profit of about $4,200, Wogen said.

But Wogen is also supportive of the mayor's call for transparency.

"I think for perception reasons, it's a good idea what the mayor is going to pursue," he said. Before he submitted quotes, Wogen said that he checked that the process was legal.

Biernacki said there may have been one other instance of an alderman performing city work since he began as city manager, but that he would need to research before giving a definitive answer. He did not know if an instance occurred under past managers, but said that the purchasing policy has been in place for "many, many years."

The dollar thresholds – such as any expenditure exceeding $20,000 requires a formal bidding process and council approval – follow state statute, he said.

Purchases of $10,000 or less may be made without a bid process, and purchases between $10,001 and $19,999 require an informal bidding process, where two price quotes are solicited from at least two qualified vendors.

Copyright © 2009 Daily Chronicle. All rights reserved.


"DeKalb contracts for alderman prompt policy talk"

http://www.daily-chronicle.com/articles/2009/10/22/03518407/index.xml

October 22, 2009 10:59pm

By ELENA GRIMM - egrimm@daily-chronicle.com

DeKALB – The city is considering changes to its financial policy, months after the mayor learned a sitting alderman’s masonry business won more than $50,000 in city contracts that didn’t require city council approval.

The now-defunct Masonry Works LLC, owned by Third Ward Alderman Victor Wogen, won contracts on six projects in 2008 that included tuckpointing, weatherproofing and other repairs to exterior walls of downtown buildings that had been exposed from the demolition of adjacent buildings. Wogen was an alderman at the time the contracts were awarded.

Masonry Works was the low bidder on all six projects, which totaled $52,880. Each project individually cost less than $20,000. Expenditures less than $20,000 don’t require authorization by the city council but can be approved by the city manager, according to state and city law.

Mayor Kris Povlsen was an alderman in 2008 until that August, when he was appointed to fill the term vacated by Frank Van Buer, who died while in office. Current aldermen David Baker, Brent Keller, Ronald Naylor, and Bertrand Simpson also were in office in 2008.

Povlsen said Thursday that, when he learned a few months ago about the work performed by Masonry Works, he asked that the purchasing policy be reviewed by the city council.

“I don’t like to give the appearance of anything that might be construed as inappropriate,” Povlsen said.

The city council on Monday is scheduled to consider prohibiting or limiting work that aldermen can do for the city. Povlsen said that he would like to see an ordinance created that, at minimum, requires disclosure of funds paid to an alderman or to his or her employer for work on city projects.

Wogen competitively bid on eight projects and submitted the lowest quotes for six of those, City Manager Mark Biernacki said at a news conference Thursday afternoon.

“Our intentions were good,” he said. “Do this at the lowest cost possible and do it within the law.”

Wogen defended the contracts.

“We’re still citizens of the community; we still have careers, we still need money,” he said.

After material and labor expenses, the company made a profit of about $4,200, Wogen said.

But Wogen is also supportive of the mayor’s call for transparency.

“I think for perception reasons, it’s a good idea what the mayor is going to pursue,” he said. Before he submitted quotes, Wogen said that he checked that the process was legal.

Biernacki said there may have been one other instance of an alderman performing city work since he began as city manager, but that he would need to research before giving a definitive answer. He did not know if an instance occurred under past managers, but said that the purchasing policy has been in place for “many, many years.”

The dollar thresholds – such as any expenditure exceeding $20,000 requires a formal bidding process and council approval – follow state statute, he said.

Purchases of $10,000 or less may be made without a bid process, and purchases between $10,001 and $19,999 require an informal bidding process, where two price quotes are solicited from at least two qualified vendors.

Also on the agenda:

The city council will consider completing downtown streetscape work in 2010 instead of in 2011. Work on Lincoln Highway was scheduled for 2010 and work on Locust Street for 2011, but low bids on construction projects and input from downtown merchants may have both projects done next year. The Lincoln Highway portion would be done first, with the Locust Street improvements to follow.

The Fiscal Year 2010 first quarter financial report and a DeKalb Taylor Municipal Airport economic development impact study will be presented.

A resolution authorizing PSA Dewberry architectural firm to design renovations to the police station, particularly in the telecommunications center.

A resolution approving transportation improvement projects for the airport for 2010 and 2011.

If you go

What: DeKalb City Council meeting
When: 6 p.m. Monday
Where: DeKalb Municipal Building, 200 S. Fourth St. in DeKalb

Copyright © 2009 Daily Chronicle. All rights reserved.

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