Broda's Backroom Deal Exposed

Typically, when an elected trustee resigns from a Village office, there is an open, public process to fill the vacant seat. An open process builds public trust and confidence and ensures that the most qualified person is selected to fill a vacant seat. 

Unless, the vacancy is in Lisle.

Once again, we see that Lisle Mayor Broda chooses the backroom, closed process over the open, transparent public process - this includes the process of appointing a person to fill a vacancy in an elected public office.  

Here's the Broda backroom process... 

Lisle Watchdogs received several tips a few weeks ago that a Lisle resident was announcing to friends and neighbors that she was going to be appointed to the Village Board. We received several tips - but only verbal accounts - no records. 

There was no vacancy in a public office. 

On June 16, the Village of Lisle posted an agenda for the June 20 Board meeting that included a closed meeting to select a person to fill a public office. As of June 16, there was no vacancy in a publi office in Lisle. We received several more tips informing us about the person that Broda had already selected to fill an unannounced vacancy in a public office. 

On the morning of June 20 - still no effective vacancy in a public office. 

At the June 20 Board meeting, a letter from Trustee Getz was read, but there was no public announcement seeking letters of interest/resumes from Lisle residents interested in filling a vacancy in a public office. The following day we submitted a FOIA. 

TIMELINE of Broda's Backroom Deal

- Thurs June 9, 2016 - Christy McGovern, former Green Trails HOA member, former public school teacher, and now a stay-home mom for the past 12 years submits her letter and resume addressed to the entire "Lisle Board of Trustees." (Did her letter actually get delivered to the entire Board of Trustees on June 9?) 

- Thurs June 16, 2016 - Village of Lisle posts agenda for the June 20 Board Meeting with closed session item to discuss appointment of a person to fill a vacancy in a public office.... but at the time there was no effective vacancy.

 - Friday June 17, 2016 - The Village of Lisle posts the packet for the June 20 Board meeting - no information on a vacancy in a public office is included in the packet. 

- Monday June 20, 2016 (2:26PM) - Trustee Rob Getz submits a resignation letter via email (not notarized as required by statute) to Broda and Village Manager Sprecher. Because the letter is not notarized, there is still no effective "vacancy" on the Board. (Ref: 65 ILCS 5/3.1-10-50 - see below) 

 - Monday June 20, 2016  - (7:30 PM) The public is informed of Getz's resignation as his letter is read aloud. The letter would not be made available to the public for 7 days. The Board goes into a closed meeting on June 20 to discuss appointment of a person to fill a vacancy in a public office. Broda presents the McGovern letter/resume. There was no effective vacancy as of June 20 because Getz's letter was not notarized. 

- Tues June 21, 2016 - Lisle Watchdogs submit FOIA for the Getz resignation letter and the McGovern resume and letter of interest in the appointment.

- Monday June 27, 2016 - Village of Lisle posts info on Getz resignation on website. Broda is still not seeking letters of interest from Lisle registered voters.  "Mayor Broda will propose a replacement to the Village Board for their approval"

- Tues June 28, 2016 - 10 AM. Village of Lisle responds to our FOIA and provides copies of the requested public  records. (see below) 

McGovern Photo: Facebook.

Getz photo: Village of Lisle website

CLICK to enlarge public records (redacted by Village of Lisle)

 McGovern's June 9 Letter to "Lisle Board of Trustees" - obtained by FOIA

McGovern's resume - obtained by FOIA

 Getz's June 20 Email to Broda and Sprecher - obtained by FOIA

                       Getz's June 20 Resignation Letter to Broda - obtained by FOIA

June 28, 2016 - Getz's seat as a Village Trustee is still not effectively vacated because he did not submit a notarized letter as required by State Statute (this will likely change after the VOL reads this blog):

Illinois Municipal Code:  (65 ILCS 5/3.1-10-50) 

Sec. 3.1-10-50. Events upon which an elective office becomes vacant in municipality with population under 500,000.
(a) Vacancy by resignation. A resignation is not effective unless it is in writing, signed by the person holding the elective office, and notarized.

Village of Lisle Board Fails to Audit BU Stadium for 7 Years

Lisle citizens who attended a Special Meeting of the Village of Lisle Board of Trustees on May 31, 2016 were surprised to learn that the Village of Lisle failed to conduct independent annual audits of the financial statements of operations of the Village of Lisle - Benedictine Stadium Complex from 2010- 2016. 

The "informal" reports that Benedictine University submits to the Village of Lisle show $2.6 Million in total losses since the Stadium Complex opened in 2004. 

In 2004, the Village issued $6.4 Million in General Obligation (Alternate Revenue Source) Bonds payable from the facility revenue and from hotel taxes. Hotel tax revenue for FY 2015-16 remains 39% below its high in 2007. 

The Village does not have sufficient revenue to make the remaining bond payments, including a $2.3 Million balloon payment in 2024. There has been much controversy on the the options for refinancing the debt and the desire for a ballot referendum. 

The Village of Lisle is refusing to voluntarily place the question of bond refinancing on the ballot. 

Why? Perhaps because the Village Board knows that voters would reject the proposed refinancing plan that extends payments out to 2033 and permanently removes Benedictine University's obligation to contribute net operating revenues to the bonds fund? OR perhaps the Village Board knows that voters would reject the proposed refinancing plan because it would limit Village of Lisle public use of public-private sports complex to 5% or about $15,000 of use events per year? 

Benedictine University can purchase the $6.4 Million in publicly-funded improvements in 2029 for $1.00. 

Lisle-Woodridge Fire District Outsources Finance Dept.

The Lisle-Woodridge Fire District has terminated their entire finance department and outsourced all financial work to Governmental Accounting, Inc of Inverness, IL. The move will save the district money - eventually.  Its questionable if taxpayers will ever see the savings.

It will take 9 months to recover the costs of the severance and release payouts for the 3 LWFD employees who were terminated.

The LWFD Board of Trustees approved the severance agreements on March 22, 2016. There was no public disclosure prior to Board approval - a blatant violation of the IL Open Meetings Act.  It took Lisle Watchdogs 3 weeks to get the District to release the Board-approved severance documents with multiple communications to the LWFD FOIA officer, James Weaver, and correspondence to the IL Attorney General.  Under the IL Freedom of Information Act these records were required to be provided in 5-days.

Better late than a lawsuit.

$123, 300 Severance to Terminate Three Employees

The District terminated the Finance Director, the Finance Assistant, and the Accounting Specialist.
Each was given a separate severance agreement. The total of all three severance packages is $123,319. The three employees had a combined total annual salary of $198,015 and a combined total compensation package of $295,631. We are waiting to hear when the severance payments were made to see if they were structured to provide a pension spike.

Barbara Beshears, the Finance Director received a severance package of $73,983.07.
Her annual salary was $97,619 and her total compensation package was $133,402.

Cathy Hojak, the Finance Assistant, received a severance package of $28,814.88
Her annual salary was $66,452 and her total compensation package was $102,311.

Randi Wobrock, the Accounting Specialist, received a severance package of $20,521.11.
Her annual salary was $33,944 and her total compensation package was $58,918..

$107.640 Annually to Outsource Finance Dept. 

All of the work done by the Finance Dept - including budgets, purchasing, annual financial reports - has been outsourced for an annual cost of $107,640.

Net savings to the District - and hopefully to the taxpayers - is significant.

After the first nine months it takes to recoup the cost of the severance packages, the District will see an annual savings of $187,991.

Governmental Accounting, Inc. proposes to do the work of 3 full-time district employees working a combined 120 hours per week with only 2 part-time employees working a combined 28 hours per week - a reduction of  77% in work hours. Some work will be done on-site and some work will be done remotely.

WILL THE $187,991 ANNUAL SAVINGS BE PASSED ON TO TAXPAYERS?

Not likely.

Don't get your hopes up that this will result in a tax cut to taxpayers. Far more likely, the so-called "savings" from outsourcing will shift more money into the District's underfunded pensions.

Nothing more than moving money from one pocket to the other. We have to ask, why wasn't this done years ago? Why aren't other governmental entities outsourcing their finance work?

See Also:

Lisle Woodridge Fire District Quietly Approves Major Reorganization.
 - March 2015 Job Cuts Hit Lisle-Woodridge Fire District

Alarm Sounds, Lisle -Woodridge Fire District Fails to Respond.
 - Oct 2014 - LWFD Fails to respond to Finacial Alarm 2 years Later.

  

DuPage County Questions Conflict of Interest in Lisle.
 - July 2015 - Tom Althoff Appointed to LWFD Board conflict with Village of Lisle.

Moody's Downgrades Lisle-Woodridge Fire District
 -June 2014 The Aa3 issuer rating reflects a recent trend of underfunding annual pension payments, highlighting the financial risk stemming from the district's elevated pension liabilities and statutory requirements that require the district to fully fund its employer contributions.

We are Still working on it...
 - Oct 2015  - 3 1/2 years after the May 2012 Crowe Horwath Report, LWFD was still working on a financial plan to address the underfunded pensions.


Reference:

   All of the severance agreements and the outsourcing contract approved on March 22, 2016 are now available (as of yesterday) on the LWFD website.


FOIA Documents

 - FOIA 3/25/2016 

 - FOIA Correspondence

 - FOIA Response

Print This: Lisle Park District Steers No-Bid Work to Commissioner

Neil Buchelt, elected to the Lisle Park District Board of Commissioners in April 2013, has received over $5,700 in no-bid work to the company he owns and operates - Advanced Imaging, Inc.  - from the same governmental body he was elected to oversee.

Buchelt and guest at 2014 Lisle Chamber Dinner Dance Gala  

$80/pp Tickets paid for by taxpayers. 

(via facebook - fair use, tickets paid by taxpayers)

(Click to enlarge) 

Buchelt disclosed the blatant conflict of interest on his 2015 Statement of Economic Interest filed with DuPage County. We inquired for records with a FOIA submitted on July 17, 2015.

Since elected, the Lisle Park District has steered $5,756 of work for printing art canvases to Buchelt's company.

The Lisle Park District also paid Advanced Imaging, Inc. for goods that were given away as gifts - including gifts to employees who resigned and a gift to an other elected Park Commissioner.

Summary of Lisle Park District No-Bid Payments to Advanced Imaging, Inc. 

since Neil Buchelt was elected Park Commissioner in 2013.

(Click to enlarge)

In 2013, the Lisle Park District paid Advanced Imaging, Inc. $359.00 for a framed print that was given to Lisle Park Commissioner Margaret Hough as a "gift."  Since State laws require that Park District Commissioners shall serve without compensation, Lisle Watchdog submitted a FOIA for all records regarding this expenditure of public funds. We did not receive any record that Hough paid for this "gift" nor did we receive a copy of a W2 reporting the $359 gift as "compensation."

Advance Imaging, Inc invoice for $359 "Gift" for 

Lisle Park District Commissioner Margaret Hough

(Click to enlarge)

In addition, the Illinois Constitution states that public funds can only be used for a public purpose. There is no public purpose for the use of public funds to buy "gifts" for individuals.

Buchelt's Filed Statement of Economic Interest  - 2015. 

(Click to enlarge)

Since each of the payments to Advance Imaging. Inc. is under the threshold for "mandated" bidding, (anything can be bid) the payments are presented on a voucher log and required approval by the Board to pay the invoices. 

Purchases of goods and services under $5000 can be made without bidding, without a purchase order, with only the request from one person - a department head. Purchases over $5000 require a purchase order and submission of at least 2 competitive quotes. ALL payments require the Board approval of the voucher log to pay the monthly invoices. 

Buchlet Votes to Approve Payments to Himself 

At the June 18, 2015 Park District Board of Commissioner's meeting, Buchelt voted "yes" to approve payment of $1178.00 to the firm he owns and operates - Advanced Imaging, Inc - on the payment voucher log.

At the May 21, 2015 Park District Board of Commissioner's meeting, Buchelt voted "yes" to approve payment of $992.32 to the firm he owns and operates - Advanced Imaging, Inc. - on the payment voucher log. 

First page of the Payment Voucher Log May 2015 Board Meeting Packet. 

(Click to enlarge)

First page of the Payment Voucher Log June 2015 Board Meeting Packet. 

(Click to enlarge)

In fact, we found no records showing Buchelt abstaining from voting on approval payment of vouchers to his own company  - despite the glaring conflict of interest. 

We found no records showing the Lisle Park District attempted to obtain competitive pricing quotes or sought pricing quotes from any other vendor. 

Oath of Office, Neil Buchelt

(Click to enlarge)

Link to Public Records: 

Lisle Park District Ethic Ordinance and Gift Ban

Advanced Imaging, Inc, 2013 Payment Records 

Advanced Imaging, Inc, 2014 Payment Records 

Advanced Imaging, Inc, 2015 Payment Records 

Coming soon.... 

Lisle Park District Commissioners - FREE admission. 

How would you spend $42,509?

Lisle School District 202 spent $42,509 for UNICOM-Arc to run Five "Community Engagement" Vision 202 meetings in 2014-2015 School Year.

That's equal to the cost of 177 brand new Dell Chromebooks.  (There are only 25 public computers available at the Lisle Library)

Additional expenditures to Unicom Arc are anticipated to cover the PR consulting for Phase 2 of Vision 202 expected to start in Fall 2015.  Phase 2 will advance the issue of facilities and set the final stage for the tax increase referendum. The overview of the Facilities Master Plan prepared by Perkins & Will Architects was already presented to the Board at their July 20, 2015 Board Meeting. The contract for architectural services for the Facilities Master Plan was approved at the August 17, 2015 Board Meeting. The amount of the architectural Facilities Master Plan contract is not included on the Board agenda. 

•   Was this the best use of $42,509 of public funds? 
•   How much more public money will be spent on PR on a "Winning Before You Start"  PR campaign for a "YES" tax increase referendum? 
•   Is it legal for a gov't entity to expend public funds on a "Yes" tax increase campaign?
•   Do Lisle taxpayers know the strategy that is being used here? 
•   How were the members of the "Facilitating Team" selected? 
•   Why did the District abruptly switch the terminology from "Facilitating Committee" to "Facilitating Team?" Perhaps because under State law all committee meetings are subject to the IL Open Meetings Act? 
•  Were any of the "Facilitating Team" meetings with Unicom Arc open to the public? 
•  Why did Unicom Arc recommend not allowing any time for Q & A at the Community meetings?

Tate Woods School 

2014-2015 Expenditures to Unicom Arc:

Unicom Arc: Paid Approx $27/per each enrolled student in Lisle CUSD 202.

Unicom-Arc: Paid an average per community meeting = $8,500

Unicom Arc:  Paid Avg per attendee, per meeting = $57. 

Unicom Arc:  Assuming the same approx 150 people participated in all 5 meetings, this comes to about $283 cost per participant paid to Unicom Arc paid by taxpayers. 

Invoices Paid

       Date   Amount

   7/8/2014 $ 3,750.00 (july services, billed in advance)
   8/1/2014 $ 3,750.00 (aug services, billed in advance)
   9/1/2014 $ 3,750.00 (sept services, billed in advance)
  10/9/2014 $ 3,750.00 (oct services, billed in advance)
  10/9/2014 $   938.35 (hotels, meals, mileage)
  11/4/2014 $ 3,750.00 (nov services, billed in advance)
 11/10/2014 $   512.56 (hotels, meals, mileage)
  12/3/2014 $ 3,750.00 (dec services, billed in advance)
   1/6/2015 $ 3,750.00 (jan services, billed in advance)
  1/30/2015 $   567.75 (hotels, meals, mileage)
   2/6/2015 $ 3,750.00 (feb services, billed in advance)
   3/1/2015 $   462.62 (hotels, meals, mileage)
   3/1/2015 $ 3,750.00 (march services, billed in advance)
   4/2/2015 $ 3,750.00 (april services, billed in advance)
  5/21/2015 $ 1,598.16 (hotels, meals, mileage)
   7/2/2015 $   930.35 (hotels, meals, mileage)

      TOTAL $ 42,509.75

Lisle CUSD 202 Board approved a contract with Unicom Arc for $37,500, plus expenses at their June 16, 2014 Board Meeting. 

Here is how the Board in place at the time voted: 

• McConville (*) - Yes 
• Tarasewicz (*) - Yes
• Narot (*) - Yes  
• Franklin (**) - Yes 
• Corrigan (**) - Yes 
• Ahlmann (*)  - Yes
• Blaeke (*) - Absent 

(*) Current Board Members. 
(**) Term Ended in May 2015.

The PR contract covers the period July 1, 2014 - April 30, 2015. Per the contract, the District "..has the option of extending this contract on a month-to-month basis for the same monthly payment.."

Expenses for hotels, meals and mileage came to $5,010, so far.

Contract extension for 2015-16 has not yet been formally approved by the Board. 

When we asked Lisle CUSD 202's FOIA officer for a copy of all of the public records that contain the work product of Unicom Arc, we were provided with no documents and were directed to visit the Vision 202 website. 

LINK to CONTRACT Approved by Board June 16, 2014 Minutes
LINK to Lisle 202 FOIA Response  (Communications)

Village: "No Smart Meter, No Water."

Village of Lisle Threatens 260 Families with Water Shut Off 

The Village of Lisle issued 260 "Water shut off" notices to 260 single family residences threatening to shut of water in 10 days if the owner did not allow "mandatory" installation of a new Sensus iPerl Smart Water Meter. 

The threat worked. 

Part of a five-year, $1.5 Million plan to replace all mechanical water meters with Sensus iPerl Smart Water Meters, this first phase included purchase and installation of 950 new residential smart water meters. 

A whopping 27% of the 950 Lisle residents in the Phase 1 Smart Water Meter installation plan received this water shut-off threat letter. 

(click to enlarge)

In announcing the plan, the Village carefully and intentionally avoided the use of the words "smart meter" and instead called the project the "water meter replacement project." or the "water meter change out program." In addition to avoiding the terminology "smart meter" the five-year phasing strategy also was implemented to control opposition. Had the Village attempted to replace all 5000 meters in a single year, there could have been a big push-back with 27%, or over 1300, shut-off threat notices going out at one time. 

The Village expects to recoup the $1.5 Million cost with income from higher water bills. The number of years to recoup the cost have not been provided. There has been no independent financial study done to substantiate this assumption.  

The new meters, which do not require testing by the Village, are allowed to "over charge" by 1.5%. By this time next year, we will be able to compare the old and new bills for the meters replace this year and we will report back on increased revenue from higher bills. 

Many of the 260 property owners who received the Phase 1 water-shut off threat had ignored the first two notices to call and schedule a new smart water meter installation over concerns of higher water bills, privacy, or health. Records provided by the Village show that among those who received a "3rd and final water shut-notice" was Village of Lisle Trustee Brad Hettich (address per DuPage Election Commission)

Some residents have said they were simply too busy to schedule installation on such short notice over the summer or were intentionally trying to stall the installation as long as possible to avoid receiving higher water bills than the rest of the town. 

There have been a number of stories in the mainstream media lately about overcharging and faulty smart meters in Tinley Park and other communities. Lisle has done nothing to address consumer confidence in their smart water meter project. Heck, Lisle is actually avoiding acknowledgement that the new meters are, in fact, "Smart Meters."

The Village of Lisle does not plan to purchase the software for remote real-time data collection until the completion of the 5-year installation plan. Until then, the Village of Lisle will continue to pay DuPage County $34,000 annually for meter reading. The program for real-time remote data collection costs about $800,000 and is not included in the $1.5 Million water meter replacement project costs.

Lisle Watchdog submitted a FOIA to the Village to obtain information.

 - The Village of Lisle has no "opt-out" plan for residents who do not want a smart water meter.

 - The Village of Lisle has no privacy policy regarding the vast amount of "real-time" hourly/daily electronic water use data that these smart meters are capable of collecting and storing. 

 - The Village of Lisle has no testing policy or plan for these new smart water meters for accuracy. 


FOIA Response. 

Teed Off: Lisle Taxpayers Subsidize $4 Million for Golf

Lisle Watchdog analyzed the Lisle Park District's River Bend Golf Fund performance from 1996 to 2014.

We find that over the past 19 years, expenses exceeded revenues 17 out of the past 19 years. The years that operated in the black, income was only about 25% of the annual bond payment.

Non - golfer taxpayers have subsidized a whopping $3,779,367 in operating losses at River Bend since 1996. 

Lisle Taxpayers could have saved $3.8 Million in cumulative annual losses if the golf course and clubhouse/restaurant were closed, the land allowed to be a prairie/floodplain/natural stormwater management area.  The new preliminary flood maps will re-categorize the 9-hole River Bend Golf Course property from a "Floodplain" to a "Floodway."

Not to be overlooked, taxpayers spent about $2.65 Million in capital expenses to build the 9,600 sf clubhouse/restaurant in 2003, tearing down the home of one of the early Lisle settlers.

Originally called "The View," the facility was renovated and renamed Wheatstack when operations failed to provide sufficient annual income to pay the annual bond payment. The District issued alternative revenue bonds in 2002. Unable to make payments from the operations revenue, the District used funds from the debt service fund in some years - a fund that obtains revenue from property taxes.

Lisle Watchdog was unable to find any plan to repay the debt service fund the money used to pay the River Bend bonds.

In 2010, the District refunded the 2002 River Bend bonds issuing $1.88M in Refunding Park Bond, Alternative Revenue Source in Nov 2010.  At the end of 2014, the remaining principal debt total was $1.255M. The 2014 annual bond payment was subsidized with a transfer from the Recreation Fund because River Bend income was still not enough to make the annual bond payment.

River Bend Bond Payments Remaining: 

  2015  $ 206,100

  2016  $ 206,300

  2017  $ 206,350

  2018  $ 210,400 

  2019  $ 208,200

  2020  $ 210,800 

  2021  $ 208,000

The Lisle Park District continues to operate the restaurant themselves rather than lease it out or contract out the operations. Restaurant part-employees who work 20 hours or more per week can participate in the IMRF pension plan. Where else can a waiter/waitress get a pension?

This past year, the Lisle Park District installed a large concrete pad (impervious surface) for a large outdoor event tent hoping to attract seasonal weddings and similar catered events. The new concrete pad/tent are located on property that is now designated "floodplain" on the new preliminary flood maps.  Wedding in the floodplain, anyone? We didn't think so.

Because the District lumps the golf and restaurant operations together in their annual financial reports, it is not readily apparent if the improvements in net income the past 2 years are due to increases in user fees for golf, the restaurant or both.

** Worth noting - Don Cook has been President of the Lisle Park District Board since 2001. 

Here's a look at the River Bend Golf Fund performance since 1996:

(click to enlarge) 

Annual River Bend Fund Losses since 1996:

(click to enlarge)

Year	Net Income
1996	-$349,128
1997	-$123,648
1998	-$180,163
1999	-$169,757
2000	-$192,681
2001	-$203,118
2002(B)	-$64,806
2003 (*)	-$228,789
2004	-$277,018
2005	-$429,026
2006	-$447,047
2007	-$257,436
2008	-$253,033
2009	-$112,138
2010(BB)	-$295,548
2011(**)	-$286,517
2012	-$10,304
2013	$46,878
2014	$53,912

(B) Alternative Revenue Bonds Issued
(*) The View Restaurant opens.
(BB) Refunding Alt Revenue Bonds
(**) Wheatstack opens.


Would allowing the golf course property to be a natural stormwater management area be a better public benefit to flood-prone Lisle? 

Ref: 
2005 Lisle Park District CAFR
2014 Lisle Park Distrirt CAFR