Tri-State FPD back in the news

Excerpts from EdgarCountyWatchdogs.com:

Our attention was drawn to the Tri-State Fire Protection District after our investigative work at COD got underway. We started receiving numerous requests for help, and after reading a series of articles by the Better Government Association, we knew there was more to uncover. (BGA Article)

These articles revealed serious 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 procured. With input from local citizens, we obtained some FOIA documents that shed light on a board member’s potential connection to the purchase of several ambulances—both new and used. What we found appears to be a clear violation of state ethics rules 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 proposals, 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 as required.

After the RFP was published, Fire Services, Inc. offered a used ambulance for around $170,000. The district eventually purchased it for $167,965. This ambulance wasn’t part of the original RFP process, yet it cost more than a new one. After initial quotes from all three companies, only Fire Services, Inc. was considered. Final offers came in without a Stryker power loader for a 2013 Wheeled Coach ambulance at $166,087 and a 2015 model at $169,702.

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

The 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, they billed $166,202 for another 2015 unit. The district also bought a no-bid used ambulance from Fire Services, Inc., resulting in a total of three ambulances under a two-ambulance RFP.

What makes this even more troubling is the fact 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. Did he disclose his employment in his Economic Disclosure Statement for his trustee position? Not a word.

According to the statement: “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 said N/A.

What are the consequences of such 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 Fire Services, Inc. as required by law under the Illinois Fire Protection District Act? Nope. My review of public minutes shows he never mentioned it during the RFP process or when the contracts were being 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 to this rule, but none apply to Mr. Orrico:

A. Approval by a majority vote of the board (no vote taken).
B. Contract amount under $1,000 (way over).
C. Total contracts to same person under $2,000 (also way over).
D. Public disclosure of interest (none on record).
E. Abstention from voting (no evidence of this either).

Did he abstain from voting on the ambulance purchases? That’s unclear, since the board doesn’t seem to publicly vote on major purchases. No discussion took place before or after the bids were accepted. It’s possible this was done to cover up 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 did the district’s lawyers allow this to happen? Probably because they use the same law firm that represented College of DuPage under Breuders’ leadership! (Attorney for Tri-State FPD)

Stay tuned for more shocking revelations coming soon!

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

Download (PDF, 1.73MB)

Thanks to Dan and Scott for their contributions.

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