Tri-State FPD back in the news

Excerpts from EdgarCountyWatchdogs.com:

The Tri-State Fire Protection District came to our attention after our investigations at COD were well underway. We received multiple requests for help, and after reviewing a series of articles by the Better Government Association, we knew there was more to uncover. (BGA Article)

Those articles revealed troubling misuse of taxpayer funds, conflicts of interest involving a trustee who gave 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 documents related to a board member’s connection to the purchase of several ambulances—both new and used. What we found suggests a clear violation of state ethics policies and the Fire Protection District Act by Mr. Michael Orrico, the district's treasurer.

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

After the RFP was published, Fire Services, Inc. offered a used ambulance for around $170,000. The district later purchased it for $167,965—even though this vehicle wasn’t part of the original RFP process. Surprisingly, this used ambulance cost more than some of the new ones.

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

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

Final invoices for the two ambulances were issued early this year. On February 20, 2015, Fire Services, Inc. invoiced $162,587 for a 2015 chassis ambulance, and on May 26, 2015, another invoice of $166,202 was issued for a similar ambulance. In total, the district ended up purchasing 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. But what did he disclose in his Economic Disclosure Statement for his trustee position? 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.”

He listed N/A.

What are the consequences of not disclosing such information? According to law, (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 disclose his relationship with Fire Services, Inc. as required by the Illinois Fire Protection District Act? No. Our review of public minutes shows he never mentioned it during the RFP process or when contracts were reviewed. He clearly violated 70 ILCS 705/4, which states:

“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. Approval by a majority vote of the board (no vote recorded)
B. Contract under $1,000 (far above that)
C. Total under $2,000 (again, far over)
D. Public disclosure (none found)
E. Abstention from voting (no record of it)

Did he abstain from voting on the ambulance purchases? That’s unclear, as the board doesn’t seem to vote on major purchases in open session. No discussion took place before or after the bids were accepted. It’s possible this was done to hide his conflict of interest.

What are the consequences of his 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 could the district’s lawyers allow this to happen? Probably because they use the same law firm that represented College of DuPage under Breuders’ leadership!

Stay tuned—this story is far from over.

You can view the paper trail below or download the full document.

Download (PDF, 1.73MB)

Thanks Dan and Scott

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