Tri-State FPD back in the news

Excerpts from EdgarCountyWatchdogs.com:

The Tri-State Fire Protection District came to our attention after our work at COD was already in motion. As we received numerous requests for help, a series of articles from the Better Government Association (BGA) caught our eye, and we knew there was more to uncover. (BGA Article)

Those articles revealed troubling misuse of taxpayer funds, a trustee granting her civil union partner promotions and benefits, and raised questions about how equipment was acquired. With input from local citizens, we filed a FOIA request to obtain documentation regarding a board member’s connection to the purchase of several ambulances—new and used. What we found appears to be a clear violation of state ethics policies and the Fire Protection District Act by Mr. Michael Orrico, the board treasurer.

In September of last year, Tri-State issued an RFP—not a request for bids—for two new ambulances. Several qualified companies submitted offers, including Foster Coach ($181,150 per unit), Alexis Fire ($161,935 per unit), and Fire Services, Inc. (~$164,000 per unit). However, all these bids were sent via email and not sealed, which is a red flag.

After the RFP was released, the agent for Fire Services, Inc. offered a used ambulance for around $170,000. The district later purchased it for $167,965. This ambulance wasn’t part of the official RFP process, yet it ended up costing more than a new one.

Following initial quotes from all three companies, only Fire Services, Inc. was considered. Final offers included a 2013 chassis Wheeled Coach ambulance without a Stryker power loader for $166,087 and a 2015 chassis model for $169,702.

Interestingly, the Fire Services, Inc. agent spoke directly with Mike Orrico in January 2015 about a paint issue on the used ambulance.

The final invoices were issued early this year: $162,587 for a 2015 chassis ambulance on February 20, 2015, and $166,202 for another on May 26, 2015. The district also bought a no-bid used ambulance from Fire Services, Inc., totaling three ambulances under a two-ambulance RFP.

What makes this even more concerning is that one of the trustees works for the company that sold the ambulances to the district.

Mr. Michael Orrico sells fire equipment for Fire Services, Inc. What did he disclose about his employment in his Economic Disclosure Statement for his trustee position (page 55 of the PDF below)? Nothing:

“Except for professional service entities, the name of any entity and any position held therein from which income in excess of $1,200 was derived during the preceding calendar year if the entity does business with a unit of local government in relation to which the person is required to file.”

Mr. Orrico said N/A.

What are the consequences of nondisclosure?

(5 ILCS 420/4A-107) Any person required to file a statement of economic interests under this Article who willfully files a false or incomplete statement shall be guilty of a Class A misdemeanor.

Did he mention his relationship with the company as required by law under the Illinois Fire Protection District Act? Nope. My review of all the online minutes shows he didn’t say anything when the RFPs were put out or reviewed. He clearly violated 70 ILCS 705/4 by ignoring the following:

“No trustee or employee of such district shall be directly or indirectly interested financially in any contract work or business or the sale of any article, the expense, price or consideration of which is paid by the district; nor in the purchase of any real estate or other property, belonging to the district, or which shall be sold for taxes or assessments or by virtue of legal process at the suit of the district.”

There are exemptions, but none apply to Mr. Orrico:

A. Contract approved by a majority vote of the board (NO VOTE TAKEN)
B. Amount under $1,000 (WELL OVER)
C. Total contracts under $2,000 (WELL OVER)
D. Public disclosure before deliberation (NOT ON RECORD)
E. Abstain from voting (DID NOT ABSTAIN)

Did he abstain from voting on the purchase of these two ambulances? It's unclear, since the board doesn't appear to vote on large purchases in open session. No discussion was recorded in the months before or after the bids were taken on this major equipment purchase. Perhaps that was done to cover up his conflict—no one can say for sure. (Link to all those minutes)

What are the consequences of Mr. Orrico’s actions?

“Any officer or employee who violates this Section is guilty of a Class 4 felony and in addition thereto any office held by such person so convicted shall become vacant and shall be so declared as part of the judgment of the court.”

How did the lawyers for the district allow this to happen on their watch?

Probably because the district uses the same law firm as the College of DuPage was using under Breuders’ watch! (Attorney for Tri-State FPD)

Stay tuned for some pretty amazing exposure yet to come!

You can see the paper trail on this article below or download.

Download (PDF, 1.73MB)

Thanks Dan and Scott

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