McLean County Times

McLean County Public Building Commission met Jan. 7.

Here are the minutes provided by the commission:

The Public Building Commission of McLean County, Illinois (the "Commission") was called to order by Chairman Novosad on January 7, 2025 in Room 404 of the Government Center, 115 East Washington Street, Bloomington, McLean County, Illinois.

Acting Secretary Robert Porter called the roll with the following members answering "present": Novosad, Zimmerman, Harris, Fazzini, Johnson, Townsend, and Roller. Messrs. Reid and Fruin were absent.

Also present were Commission Attorney Robert Porter, Assistant County Administrator Tony Grant, Chad Frankeberger of the Farnsworth Group, Inc., Jamie Brownfield of CORE, and Dan Joos of CORE.

No members of the media, press, and/or radio were present.

Chairman Novosad began the meeting by presenting the Minutes of the December 3, 2024 Regular Meeting of the Commission for approval. Chairman Novosad asked if there were any questions, additions, and/or revisions to the Minutes. Hearing none, Chairman Novosad asked for a Motion to approve the Regular Meeting Minutes. It was moved by Mr. Johnson and seconded by Ms. Roller that the Minutes of the December 3, 2024 Regular Monthly Meeting be approved as submitted. The Motion was unanimously approved by voice vote.

Chairman Novosad then called on Commission Attorney Robert Porter to present the Treasurer's Report for the Fiscal Year. Mr. Porter began his Report by noting that the Commission was yielding an approximately 4.4% annual return on its Money Market Accounts at PMA Securities, LLC. and Heartland Bank & Trust Co. Mr. Porter remarked that this was a healthy return in light of

the Federal Reserve Board's recent interest rate cuts.

Mr. Porter then reminded the Commission that it made several debt service payments on December 1, 2024. Mr. Porter specifically indicated that the Commission retired its outstanding Series 2015 Public Building Revenue Bond Issue with the proceeds from the Series 2024 Public Building Refunding Bond Issue. Mr. Porter recalled that these proceeds had been invested in an escrow fund at Heartland Bank & Trust Co. for three (3) months during which time it generated approximately four hundred eight thousand dollars and 00/100 ($408,000.00) in investment earnings.

Mr. Johnson inquired whether there were arbitrage concerns with respect to the proceeds from the Series 2024 Public Building Refunding Bond Issue. Mr. Porter replied that there were no such concerns as the original Issue proceeds were entirely spent in just three (3) months.

Mr. Porter lastly noted that the disbursements were listed on page twenty-one (21) of the Treasurer's Report.

Chairman Novosad asked if there were any questions or comments for Mr. Porter on the Treasurer's Report. Hearing none, Chairman Novosad asked for a Motion to approve the Treasurer's Report. It was moved by Mr. Zimmerman and seconded by Mr. Johnson to approve Treasurer's Report and proposed payments as submitted. Upon a roll call vote, all Commissioners voted in favor of the Motion.

Chairman Novosad next turned to the Commission's "New Business" and asked Assistant County Administrator Tony Grant to discuss the modernization of elevators in the Law & Justice Center and Old County Courthouse.

Mr. Grant indicated that he had recently been apprised of a delay in the completion of the modernization work on the North-South Lobby Duplex Elevators at the Law & Justice Center. Mr. Grant noted that he had just returned to work from a vacation and still needed to ascertain the cause of the delay.

Chairman Novosad asked if there were any questions or comments for Mr. Grant regarding the Elevator Modernization Project. Hearing none, Chairman Novosad asked Mr. Grant to provide a status report on the operation and maintenance of the Commission-owned facilities.

Mr. Grant began his report by noting that asbestos-removal work at the Fairview Building was currently scheduled for January 9th. Mr. Grant noted that much of the Fairview Building would be demoed down to the studs following the removal of asbestos. Mr. Grant added that exterior tuck-pointing and brick replacement work would take place in the spring.

Turning to the Government Center, Mr. Grant indicated that the HVAC units were scheduled to be replaced. Mr. Grant also relayed that the cast iron piping would be replaced.

Chairman Novosad asked whether the County had located a tenant. Mr. Grant replied that the County intended to use the Fairview Building for its own office space needs.

Chairman Novosad then asked if there were any other questions or comments for Mr. Grant regarding the operation and maintenance of the Commission-owned facilities. Hearing none, Chairman Novosad asked Dan Joos and Jamie Brownfield of CORE to discuss the Animal Control Shelter Project.

Mr. Joos initially thanked all those on the Commission who were able to attend CORE's holiday party at the Project site. Mr. Joos remarked that he was certain everyone would be proud of the Animal Control Shelter once it was completed.

Mr. Joos next noted that the roofing work had been completed on Friday, January 3rd.

Mr. Joos then provided the Commission with a power point presentation as to the status of the Animal Control Shelter Project. Mr. Joos initially highlighted the third (3rd) and fourth (4th) slides, which slides showed images of the completed roofing work. Mr. Joos then indicated that the fifth (5th) slide showed images of the MEP work. Mr. Joos added that all of the roof drains had been tied-in and connected. Mr. Joos next noted that the seventh (7th) slide featured an image of the facility's exterior brick mock-up. Mr. Joos relayed that the Farnsworth Group, Inc. had reviewed and approved the brick mock-up. Mr. Joos pointed out that the visible green material on the exterior wall was an air barrier product. Mr. Joos added that the brick siding would go up to the bottom of the exterior windows. Mr. Joos stated that the material above the brick would be a concrete siding.

Mr. Fazzini inquired about the required temperatures to perform brick work. Mr. Joos replied that it typically needs to be warmer than forty (40) degrees Fahrenheit to perform brick work.

Ms. Brownfield then noted that the other three (3) sides of the facility not visible in the seventh (7th) slide would feature an EIFS façade.

Mr. Grant asked whether there was a layer of insulation built into the brick mock-up. Mr. Joos responded that the material Mr. Grant was inquiring about was actually stainless-steel "thru- wall" flashing.

Ms. Brownfield then added that CORE was finishing up the interior water lines that run in the ceiling of the new Animal Control Shelter.

Mr. Joos next pointed out that the eighth (8th) slide featured the Project's schedule. Mr. Joos indicated that the framing work was currently slated to begin slightly ahead of schedule.

Mr. Zimmerman asked when the fire suppression lines would be installed. Mr. Joos replied that those lines were currently being installed along with the other MEP items.

Mr. Joos thereafter relayed that the ninth (9th) slide showed the Project's progress billing. Mr. Joos anticipated that progress billing would increase over the next several months. Mr. Joos then indicated that the tenth (10th) slide pertained to the Project's FF&E.

Mr. Grant reminded the Commission that it published a Request for Proposals (RFP") for FF&E on December 20, 2024, Mr. Grant noted that responses to the RFP were due on January 16th.

Chairman Novosad asked about the number of vendors that received the RFP and Mr. Grant replied that nine (9) vendors had expressed interest. Mr. Grant added that he had received questions from three (3) or four (4) of these vendors.

Mr. Joos next noted that the eleventh (11th) slide featured information regarding the contract's Guaranteed Maximum Price ("GMP"). Mr. Joos then underscored that the Project's GMP had yet to change. Mr. Grant pointed out to the Commission the three hundred six thousand one hundred twenty-three dollars and 00/100 ($306,123.00) set aside for FF&E.

Chairman Novosad asked whether FF&E was outside of the Commission's contract with CORE and Mr. Grant responded in the affirmative.

Mr. Joos then pointed out that the twelfth (12th) slide featured the Project's construction contingency. Mr. Joos indicated that some of the contingency would need to be used to cover additional weather delays.

Mr. Zimmerman next asked whether the estimated cost of FF&E included the cost of installation. Mr. Grant responded by noting that he expects the manufacturers to install the FF&E.

Mr. Joos lastly noted that the Project contingency currently stands at two hundred eighty- five thousand nine hundred sixty-nine dollars and 00/100 ($285,696.00). Ms. Roller then commented that this was a healthy contingency for this point in the Project.

Chairman Novosad then asked if there were any additional questions or comments for Mr. Joos, Ms. Brownfield, and/or Mr. Grant regarding the status of the Animal Control Shelter Project. Hearing none, Chairman Novosad asked Mr. Porter to discuss the status of a possible Public Building Revenue Bond Issue to fund a Bloomington-Normal Water Reclamation District (“BNWRD”) Project.

Mr. Porter reminded the Commission that BNWRD's executive director, Tim Ervin, attended the Commission's meeting on December 3, 2024 to discuss the possibility of the Commission issuing a new Public Building Revenue Bond to fund a BNWRD Project. Mr. Porter specifically relayed that BNWRD needs to modernize the plant on West Oakland Avenue in Bloomington in order to remain compliant with Illinois Environmental Protection Agency standards. Mr. Porter noted that BNWRD will complete the modernization work in five (5) different phases. Mr. Porter then indicated that BNWRD is seeking the Commission's assistance in funding the fourth (4th) phase of the work, which entails re-building the facility that performs thickening and de-watering. Mr. Porter indicated that thickening and de-watering is the process whereby sludge is removed from water. Mr. Porter noted that the fourth (4th) phase is expected to cost thirty-three million dollars and 00/100 ($33,000,000.00).

Mr. Porter further relayed that he had an opportunity to discuss the Project with Steve Adams and Andrew Kim of PMA Securities, LLC. as well as Mr. Ervin and his team. Mr. Porter noted that BNWRD intended to carry the cost of designing Phase Four (4) of the Project. Mr. Porter indicated that BNWRD has retained the engineering firm Baxter & Woodman, Inc. for this purpose.

Mr. Porter thereafter relayed that BNWRD anticipates actual construction beginning in mid- 2026. Mr. Porter then noted that, at that time, BNWRD would call on the Commission to issue a Public Building Revenue Bond Issue to fund construction. Mr. Porter stated that the Commission would thereafter retain a construction manager and/or general contractor and pay monthly invoices as it has with prior Projects. Mr. Porter indicated that the Commission would also assume ownership of the thickening and de-watering facility for the life of the Bonds.

Mr. Porter then noted that Mr. Ervin expects Baxter & Woodman, Inc. to begin its work in March 2025. Mr. Porter further relayed that Mr. Ervin would attend the Commission's meeting in March 2025 to provide an initial report on the Project's design. Mr. Porter added that Mr. Evin would be providing subsequent reports to the Commission that correspond to design milestones.

Mr. Zimmerman asked whether the Commission would be paying Baxter & Woodman, Inc. for design services. Mr. Porter responded in the negative and indicated that those services would be paid for by BNWRD.

Mr. Fazzini inquired about the Commission's debt limit. Mr. Porter indicated that the Commission can issue Revenue Bonds up to an amount of five-percent (5%) of the County's EAV. Mr. Porter relayed that this figure was approximately two hundred thirty-four million dollars and 00/100 ($234,000,000.00).

Mr. Johnson then asked whether the Commission would be entering into a letter agreement with BNWRD prior to passing a formal Bond Resolution in 2026. Mr. Porter replied that he would be exploring a Memorandum of Understanding with BNWRD in the coming months.

Ms. Roller inquired whether the Commission would be paying for Baxter & Woodman, Inc.'s construction administration costs. Ms. Roller also asked whether Baxter & Woodman, Inc. had furnished BNWRD with a design schedule. Mr. Porter responded by noting that he would ask Mr. Ervin about these points and report back to the Commission.

Chairman Novosad then asked if there were any additional questions or comments for Mr. Porter regarding the status of a possible Public Building Revenue Bond Issue to fund the BNWRD Project. Hearing none, Chairman Novosad noted that the Commission had received Otis Elevator Co.'s Invoice Number Thirty-Five (35) on July 17, 2024 in the sum of seventeen thousand eight hundred twenty-three dollars and 82/100 ($17,823.82). Chairman Novosad noted that this invoice was for labor costs associated with the modernization work on the Judges' Private Elevator. Chairman Novosad noted that the invoice had been reviewed and approved by Mr. Grant and TEC.

Chairman Novosad asked if there were any questions or comments concerning Otis Elevator Co.'s Invoice Number Thirty-Five (35). Hearing none, Chairman Novosad asked for a Motion to approve payment of Otis Elevator Co.'s Invoice Number Thirty-Five (35) in the sum of seventeen thousand eight hundred twenty-three dollars and 82/100 ($17,823.82) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. It was moved by Mr. Fazzini and seconded by Mr. Johnson to approve payment of Otis Elevator Co.'s Invoice Number Thirty-Five (35) in the sum of seventeen thousand eight hundred twenty-three dollars and 82/100 ($17,823.82) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. Upon a roll call vote, all Commissioners voted in favor of the Motion.

Chairman Novosad next noted that the Commission received Otis Elevator Co.'s Invoice Number Thirty-Six (36) on October 30, 2024 in the sum of sixty thousand seven hundred eight dollars and 15/100 ($60,708.15). Chairman Novosad indicated that this invoice was for the cost of materials for the modernization of the Jail Visitors' Elevator. Chairman Novosad relayed that the invoice had been reviewed and approved by Mr. Grant and TEC.

Chairman Novosad asked if there were any questions or comments concerning Otis Elevator Co.'s Invoice Number Thirty-Six (36). Hearing none, Chairman Novosad asked for a Motion to approve payment of Otis Elevator Co.'s Invoice Number Thirty-Six (36) in the sum of sixty thousand seven hundred eight dollars and 15/100 ($60,708.15) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. It was moved by Mr. Zimmerman and seconded by Mr. Harris to approve payment of Otis Elevator Co.'s Invoice Number Thirty-Six (36) in the sum of sixty thousand seven hundred eight dollars and 15/100 ($60,708.15). Upon a roll call vote, all Commissioners voted in favor of the Motion.

Chairman Novosad next noted that the Commission received an invoice from the Farnsworth Group, Inc. on December 18, 2024 in the sum of twenty-three thousand sixty-seven dollars and 24/100 ($23,067.24). Chairman Novosad relayed that this invoice corresponded to the completion of eighty-percent (80%) of the construction administration phase of the Commission's contract with the Farnsworth Group, Inc. Chairman Novosad stated that the invoice had been reviewed and approved by Mr. Grant.

Chairman Novosad asked if there were any questions or comments concerning the Farnsworth Group, Inc.'s December 18, 2024 invoice in the sum of twenty-three thousand sixty- seven dollars and 24/100 ($23,067.24). Hearing none, Chairman Novosad asked for a Motion to approve payment of the Farnsworth Group, Inc.'s December 18, 2024 invoice in the sum of twenty- three thousand sixty-seven dollars and 24/100 ($23,067.24) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. It was moved by Mr. Harris and seconded by Ms. Roller to approve payment of the Farnsworth Group, Inc.'s December 18, 2024 invoice in the sum of twenty- three thousand sixty-seven dollars and 24/100 ($23,067.24) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. Upon a roll call vote, all Commissioners voted in favor of the Motion,

Chairman Novosad next noted that the Commission received CORE's Eighth (8th) Pay Application on December 30, 2024 in the sum of three hundred sixteen thousand two hundred one dollars and 90/100 ($316,201.90). Chairman Novosad indicated that this invoice encompassed general construction work performed by CORE, masonry work performed by Otto Baum, plumbing work performed by Chief City Mechanical, roofing work performed by Henson Robinson, concrete work performed by Knapp Concrete, earthwork performed by Stark Excavating, and electrical work performed by Zeller Electric. Chairman Novosad stated that the invoice had been reviewed and approved by the architect and Mr. Grant.

Chairman Novosad asked if there were any questions or comments concerning CORE's Eighth (8th) Pay Application in the sum of three hundred sixteen thousand two hundred one dollars and 90/100 ($316,201.90). Hearing none, Chairman Novosad asked for a Motion to approve payment of CORE's Eighth (8th) Pay Application in the sum of three hundred sixteen thousand two hundred one dollars and 90/100 ($316,201.90) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. It was moved by Mr. Townsend and seconded by Ms. Roller to approve payment of CORE's Eighth (8th) Pay Application in the sum of three hundred sixteen thousand two hundred one dollars and 90/100 ($316,201.90) from the Series 2022 Public Building Revenue Bond Issue's Project Fund. Upon a roll call vote, all Commissioners voted in favor of the Motion.

Chairman Novosad thereafter asked Mr. Porter to address the 2025 Amendment to the Amended and Restated Lease Agreement.

Mr. Porter reminded the Commission that it amended the Amended and Restated Lease Agreement with the County and City on October 6, 2015, which amendment had the effect of setting the County's annual lease payments to the Commission at ten million dollars and 00/100 ($10,000,000.00). Mr. Porter further reminded the Commission that the Amended and Restated Lease Agreement with the County was again amended on January 4, 2022 to provide for the issuance of the Series 2022 Public Building Revenue Bond Issue. Mr. Porter also reminded the Commission that the Amended and Restated Lease Agreement with the County and City was further amended on December 13, 2023 to reflect the Commission's ownership of the new Animal Control Shelter Project. Mr. Porter further relayed that the Amended and Restated Lease Agreement with the County was again amended on January 2, 2024 to provide for the issuance of the Series 2024 Public Building Refunding Bond Issue.

Mr. Porter stated that the County Clerk accordingly has an ordinance on file that sets the County's levy at ten million dollars and 00/100 ($10,000,000.00) for each year through 2038. Mr. Porter stated that the ten million dollar and 00/100 ($10,000,000.00) figure was established to give the County a degree of flexibility in terms of setting its levy. Mr. Porter noted that, as a result, the County, City, and Commission are called on to amend the Amended and Restated Lease Agreement each year to ensure that the lease amount equals the amount the Commission actually needs to meet debt service costs, operation and maintenance costs, and its own administrative costs. Mr. Porter stated that this figure was derived by totaling debt service payments on the Series 2022 Public Building Revenue Bond Issue, debt service payments on the Series 2024 Public Building Refunding Bond Issue, operation and maintenance costs for the Old Courthouse, Law & Justice Center, Government Center, Juvenile Detention Center, Animal Control Shelter, Fairview Building, the Health Department Building, and the Commission's own administrative costs.

Mr. Porter indicated that the County's 2025 lease payment to the Commission would be twelve million ninety-one thousand two hundred ninety-seven dollars and 00/100 ($12,091,297.00). Mr. Porter indicated that the City's 2025 lease payment to the Commission would be eight hundred fifty-three thousand nine hundred ninety dollars and 00/100 ($853,990.00). Mr. Porter noted that this figure encompassed operation and maintenance figures for the Government Center.

Mr. Fazzini inquired whether the City and County had entered into a use-of-space agreement as it relates to the Government Center. Mr. Grant responded by noting that the County and City had collaborated together on a spatial study. Mr. Fazzini thereafter indicated that he was uncomfortable voting for the 2025 Amendment until he had an opportunity to confer with personnel from the City.

Chairman Novosad then asked whether there were any additional questions or comments concerning the 2025 Amendment to the Amended and Restated Lease Agreement. Hearing none, Chairman Novosad asked for a Motion to approve the 2025 Amendment to the Amended and Restated Lease Agreement. Hearing none, Chairman Novosad asked for a Motion to approve the Amended and Restated Lease Agreement. It was moved by Mr. Johnson and seconded by Mr. Zimmerman to approve the 2025 Amendment to the Amended and Restated Lease Agreement. The Motion was passed by roll call vote with Chairman Novosad, Mr. Zimmerman, Mr. Harris, Mr. Johnson, Mr. Townsend, and Ms. Roller voting "aye" and Mr. Fazzini voting "present."

Chairman Novosad next asked Mr. Porter to address the 2025 Amendment to the Contract for Operation and Maintenance.

Mr. Porter in turn noted that the 2025 Amendment set the Commission's 2025 operation and maintenance payment to the County at eight million seven hundred fifty-nine thousand eight hundred eighty-seven dollars and 00/100 ($8,759,887.00).

Chairman Novosad asked whether there were any questions or comments concerning the 2025 Amendment to the Contract for Operation and Maintenance. Hearing none, Chairman Novosad asked for a Motion to approve the 2025 Amendment to the Contract for Operation and Maintenance. It was moved by Mr. Townsend and seconded by Mr. Harris to approve the 2025 Amendment to the Contract for Operation and Maintenance. The Motion was unanimously passed by roll call vote.

Chairman Novosad next noted that the County was requesting that the Commission begin meeting at 3:00 p.m. on the first (1st) Tuesday of the month as opposed to 3:30 p.m. Chairman Novosad indicated that the County was making this request due to the Commission meetings conflicting with the County Board's Health Committee and Justice Committee meetings.

Chairman Novosad asked whether there were any questions or comments concerning changing the Commission's regularly-scheduled meetings to 3:00 p.m. on the first (1st) Tuesday of the month. Hearing none, Chairman Novosad asked for a Motion to approve changing the Commission's regularly-scheduled meetings to 3:00 p.m. on the first (1st) Tuesday of the month. It was moved by Ms. Roller and seconded by Mr. Townsend to change the Commission's regularly- scheduled meetings to 3:00 p.m. on the first (1st) Tuesday of the month. The Motion was unanimously approved by voice vote.

In turning to the Commission's "Other Business," Chairman Novosad recounted that he and Mr. Porter had a nice lunch with Dave Schultz in which Chairman Novosad presented Mr. Schultz with a gift commemorating Mr. Schultz's ten (10) years of service on the Commission.

There being no additional "Other Business" to discuss, Chairman Novosad asked for a Motion to adjourn. It was moved by Mr. Harris and seconded by Mr. Johnson to adjourn. The Motion was unanimously approved by voice vote and the Meeting adjourned at 4:28 p.m.

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