DuPage water commission postpones vote on contract

The DuPage Water Commission has tabled a proposal to more than quadruple the cost of a consultant's contract.

Commissioners asked for additional documentation regarding the consultant's claims he did $87,000 worth of work on a $5,000 contract.

"By my calculations he would have worked on this almost eight hours a day," said Commissioner Greg Mathews.

Phil Peloquin, the consultant from Public Sector Group, requested an additional $20,000 for the work and $2,000 to cover expenses during the seven-week span of the contract to help secure a $40 million loan for the financially troubled commission.

Commissioners said they also want to see invoices from a second contract calling for Public Sector Group to be paid up to $20,000. That contact called for the company to assist the commission with any issues that arose with bond rating agencies such as Moody's and Standard & Poor's.

However, some commissioners questioned what the two contracts had to do with one another. They worried that if Public Sector Group billed less than $20,000 for the second contract that other commissioners might try to use the financial leeway in that contract to provide additional dollars for the extra work done on the loan agreement.

"It's a dangerous thing to even be talking about," said Commissioner and Carol Stream Mayor Frank Saverino. "There ain't no way in the world we should do that. This is how government gets in trouble."

Commissioner Don Zeilenga, who was recently appointed the commission's treasurer, presented Peloquin's request at Thursday's meeting on the New York-based consultant's behalf. Zeilenga said Peloquin's work took more effort than originally expected because of issues related to the release of a forensic audit that detailed the accounting and managerial mistakes that led to the commission accidentally spending its $69 million reserve fund. The financial woes were uncovered late last year.

However, Zeilenga told the commission that Peloquin's work resulted in interest savings on the loan of more than $124,000 and more favorable repayment rules.

"This firm saved us $124,000 and helped us with the rating agencies," Commissioner Bill Maio said. "You're talking about paying him roughly 15 percent of what he saved us over the loan. This is perfectly reasonable and logical."

Maio labeled the additional payment a "reward" for doing a good job.

Commissioners argued Peloquin or Zeilenga should have notified the board sooner that so much extra work was being done if the company was expecting additional funds. Commission attorney Maureen Crowley said there is no provision in Peloquin's contract that requires any additional payment, nor are there any provisions regarding reimbursement for travel expenses.