Waukegan committee approves part‑time contract with MGT Impact Solutions after debate over cost and past lawsuit

Waukegan Purchasing and Finance Committee · December 17, 2025

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Summary

The Waukegan Purchasing and Finance Committee approved a professional services agreement with MGT Impact Solutions for up to $82,000 through May 29, 2026, after members debated the hourly rate, hiring process and that the proposed contractor previously sued the city.

The Waukegan Purchasing and Finance Committee on Oct. 20 approved a professional services agreement with MGT Impact Solutions to provide part‑time accounting support for the finance department at a cost not to exceed $82,000 and a term ending May 29, 2026.

The contract, introduced by the chair and moved by Alderman Bolton with a second from Alderman Felix, drew questions about cost and recruitment. Alderman Florian questioned the $145 hourly rate, noting "that's, like, double what almost anyone in the city makes" and observing that a full‑time equivalent would amount to roughly $301,000 per year. The chairperson and Juan, the finance director, said the hire would be for 20 hours per week and that the $82,000 figure reflects the part‑time arrangement and administrative fees to the vendor.

The finance director, Juan, said the department has struggled to hire qualified accounting staff and is "currently 6 months behind" on reconciliations and audits, arguing the temporary external CPA would help shore up the accounting team and meet audit timelines. "There's nothing bad to say about Don. He's great," Juan said in reference to the interim services previously provided by Donald Schultz, while noting the contracted CPA brings additional accounting qualifications (a CPA credential) the department lacks.

Concerns about the contractor's past litigation also surfaced. Alderman Florian stated, "This person also sued the city for $3,000,000 when they left," prompting Alderman Hayes to ask why that history had not been disclosed earlier. The chairperson responded that the lawsuit appeared to be personal and "wasn't because that they could not provide the services to the city." Committee members requested a resume and additional documentation before full implementation.

Committee members also discussed alternatives, including continuing with staffing agency Robert Half or expanding recruitment for senior and staff accountant positions rather than contracting again. The chair and finance director said a switch from the prior vendor (Municipal Resources Group Inc.) to MGT Impact Solutions reflects a change in needed professional services and is intended as a short‑term measure while internal capacity is rebuilt.

On roll call the transcript records Alderman Bolton, Alderman Felix and Alderman Martinez voting "Aye"; the motion carried. The transcript records no further details for other members' votes.