McHenry County Blog

With Township Supervisor Linda Moore in Texas for her daughter’s college graduation and Rob LaPorta also absent, the meeting was relatively short and peaceful.

No one raised his voice or went off on a rant. Trustee Gerry McMahon even sat facing the audience.

Unlike the outgoing McHenry County College Board, the old Township Board, chaired Thursday by Barbara Murphy, spent much of the meeting deferring to their successors, referring several times to newly-elected Independent Supervisor Jim Kearns, who was sitting in the back row.

The Road District’s budget, for example, was not passed, even though that was the wish of outgoing Road Commissioner Jack Freund.

“The new Board comes in on the 20th,” Trustee Betty Zirk, the only member of the Board to seek and win re-election.

When it came time for to consider the bills, Zirk had a list of those to exclude. They included

• $2,644.68 charged to a BMO Harris credit card (postage, telephone, equipment maintenance, travel expenses, etc.)
• $864.20 for J.A. Jetchmark, Ltd.
• $475 for McHenry County Council of Governments dues
• $295.60 for printing to Total Point of Video, Inc.
• $24,162.50 billed for legal fees by Moore attorney John Nelson
• $39,007.89 billed for legal services from March, 2012, through March, 2013, by Moore attorney Ottosen Britz Kelly Cooper Gilbert & DiNilf

The Trustees’ law firm, Ancel Glink, however, was paid $5,747.48.

“In order to meet the payroll next week, I don’t think we can pay any bills,” Zirk said.

Zirk also mentioned that Township Road Commissioner was owed $7,161.20 to cover health insurance for his wife.

“He could get it cheaper by getting it through his wife’s than through the Township,” she explained.

The motion approving the bills noted that they would be paid when money was available.

As outgoing Township Assessor Bill Ottley was leaving after the bills were approved, he was thanked for his service for the last four years. The sparse audience applauded.

Ottley reminded them that he would be around through December, when his term expires.

“And you, too, Jack,” one of the Trustees added.

Zirk then talked about how audit expenses should be allocated. She suggested Public Assistance pay 5% and the Road District 35%.

Freund objected to the number she suggested, saying, “I’ll pay 25% like I’ve always been paying.”

Trustee Gerry McMahon suggest a compromised of 28%. Freund did not agree.

After some discussion, Zirk suggested asking the auditor how much time he spent on the Road District budget and the matter was deferred.

As the meeting was drawing to a close, Murphy said,

“There’s a part of me that is worry for the way things ended up. I regret that.”

A letter from the forensic auditor was read in which he detailed Moore’s refusal to sign the engagement letter and a payment until ordered by Judge

He also said he was unable to obtain original copies of the warrant lists.

Township Clerk Harriot Ford pointed out the documents were on the web site.

“I look forward to things moving on a real positive way,” she said shortly before the meeting adjourned.

Also in the audience was newly-elected Township Assessor Al Zielinski.

In a completely scripted performance lasting just ten minutes,

•  petition challenger Wrayburn Krohn’s attorney, Judith Svensen, withdrew her client’s objection,
• the Grafton Township Electoral Board accepted the withdrawal and
• ruled unanimously that Pam J. “Pam” Fender would appear on the Republican primary ballot on February 26, 2013

The objection had been based primarily on Fender’s have put two names in the box where the candidate’s name appeared, plus having noted the election was on Feb. 26, 2012, rather than 2013.

Electoral Board Chairwoman Barbara Murphy got over the first problem by announcing Fender’s name would read, Pamela J ‘Pam’ Fender.”

The incorrect date was ignored since the objection was withdrawn.

Fender sat next to her attorney Jim Kelly, whom she announced soon after declaring her candidacy would be running on her “peace” slate for township trustee.  Kelly did not file for that office.

Besides Murphy, the other members of the Electoral Board were Clerk Harriet Ford and Trustee Betty Zirk.  Both Murphy and Zirk voted to install Fender as Township Administrator without advertising the opening.

Watching the proceedings were primary opponents Martin Waitzman and Linda Moore.

Attorney for the Electoral Board was Adam Lasker of Ancel Glink.

An IRS finding handed down January 31st will surely be the talk of the next meeting of the Township Officials of Illinois.

It says that heretofore fringe benefits, such as the Grafton Road Commissioner’s vehicle and the reimbursement for dinners at the McHenry County Council of Governments, are income for Federal tax purposes.

And, since the state tax code is built upon the national one, probably subject to state income tax as well.

The Internal Revenue Service writes that Grafton Township owes the Federal government $2,030.36 for 2010 for income, Social Security and Medicare taxes.

“Fringe Benefit Issues” is what the Internal Revenue Service investigator was looking at.

A topic subject to a tirade by Trustee Gerry McMahnon at one of the last meetings I attended was the taxability of reimbursements for dinners at the McCOG. [I have to tell you, except for the volume of his voice, he seemed to be making sense.]

But the IRS Specialist disagreed.

The “audit,” for lack of a better term, specifically addressed this topic:

“In 2010, the elected officials and trustees of the Township received a stipend varying from $26 to $40 per month to attend monthly dinners for the McHenry County Council of Governments. The Township does not require these members to attend these meetings. The total amount of stipends issued to all officials and trustees was $1,300 for the year. These stipends were provided under a non-accountable plan.”

If I am interpreting the documents correctly, the Trustees, in toto, will owe taxes on an additional $729 because of the McCog dinner reimbursements.

Road Commissioner Jack Freund had similar $200 of non-accountable reimbursements, Supervisor Linda Moore $253 and Clerk Harriot Ford $118.

Freund was also cited for $3,125.70 which he received for “medical reimbursements made to the elected official. However, there was insufficient substantiation provided to receive reimbursement. Thus, the payment falls under a non-accountable plan.”

Freund was further cited for getting reimbursement for his spouse’s travel expenses. This included $120.56 for a number of meals, plus “a $35 spouse fee for the conference.”

Township Road Commissioner Jack Freund’s Ford F250 pickup truck was the subject of the final finding.

Purchased on December 8, 2010, “for the Road Commissioner’s use. The vehical was inspected by the Specialist and the vehicle is not deemed to fall into the category of a Qualified Nonpersonal Use Vehicle.

“There was no adequate substantiation of business uses v personal use of the vehicle.

“Therefore, the automobile lease value for this vehicle is $7,250 (see tables in Publication 158). As it was used for 23 days in 2010, the calculation is as follows:

• Annual Lease Value = $7250
• Days of Use in 2010 + 23.365
• %7,250 X (23/365) = 456.85

Also targeted by the IRS were meals provided by Assessor Bill Ottley’s office when employees were not away overnight. Called “Day Meals” by IRS Examiner John Lauer, the reimbursements of those and non-overnight meals for Ottley and Moore totaling $369.28 have been deemed taxable.

Also mentioned are uniforms costing $480.01, but detail is not given regarding the employees affected. The report sys that “under an nonaccountable plan” are considered “wages and are treated as supplemental wages”…”reportable as wages on the employee’s Form W-2.”

“It as been determined by the FLSG Specialist that the taxpayer is wiling to correct all the above mentioned isues found during the examination,” one report concludes.

Implications for the 2011 tax year were not addressed in the report.

“I was instructed to follow the precedent sent by the 2010 audit when amending the 2011 W-2′s,” Supervisor Moore said.

“All taxpayers know they that have to comply with IRS regulations.

“It’s important that township officials are IRS compliant, too, but I don’t look forward to delivering this bad news to my colleagues.”

It is not clear whether the elected officials will have to repay the township the cost of the fringe benefits targeted by IRS.

The State Constitution says that no elected official can earn no more or less than what was set before he or she was elected:

Illinois Constitution Article 7
Section 9 Salaries and Fees
(b)An increase or decrease in the salary of an elected officer of any unit of local government shall not take effect during the term for which that officer is elected.

Some of the documents can be found here.

The Grafton Township Food Pantry was started by former Supervisor Jack Brunschon and continued to operate under his successor John Rossi.

During that time it was turned into a not-for-profit entity in order to get better prices on surplus food, as I understand it.

Providing more space for that Food Pantry was a motivating factor for the Township Trustees ill-fated efforts to build a new township hall.

GOP primary candidate Linda Moore used the borrowing of millions without a referendum to squeak out a victory over Rossi.

Those running the Food Pantry moved everything to private quarters in Rutland Township last summer.

Moore subsequently started a General Assistance Food Pantry.

Township Road Commissioner Jack Freund is about to evict that Food Pantry from the back room where the old one once was.

Moore has sent him the following letter:

8/18/2011

Dear Highway Commissioner Freund,

I am in receipt of your letter dated August 11, 2011, wherein you threaten to remove me from a portion of my offices by self-help. The last elected township officials who attempted to do so cost the township taxpayers thousands in attorneys’ fees in a losing effort. I would caution you accordingly.

As you know, the room you have termed “storage area” has been and continues to be used for our Grafton Township Food Pantry which is part of the Grafton Township’s daily operations. I am surprised you want to interfere with the delivery of food to the needy people of Grafton Township.

I have reviewed the current lease attached to an intergovernmental agreement that I never had anything to do with. Nonetheless, the room in question, according to the lease is a township office. Thus, your letter is without foundation.

Please review this matter with your counsel. It would be prudent to avoid litigation in this matter that simply will enrich attorneys at taxpayer expense. Since there is no reason cited for your action in your letter and since the room has been used for township purposes opposed to road district purposes for at least the last twelve years, the taxpayers of Grafton Township, as well as myself, are going to wonder why you are attempting to go down this path.

Please come to your senses on this matter.

Sincerely,

Linda Moore, Grafton Township Supervisor

Township government consists of two parts, the Road District, which was spun off as a separate unit of government by the General Assembly and the rest of township government, usually called the township.

The last administration of the Grafton Township Board borrowed $700,000 from the Road District to build a new township hall.

The motion to borrow the money was done without proper notice and township residents successfully sued to stop the building of a new township hall.

Linda Moore rode the issue to election, narrowly beating Supervisor John Rossi.

Rossi’s allies remained in control of the board, however.  They ever gained a fervent supporter of building a new township hall in Gerry McMahon, one of Moore “running mates.”

Pretty much everything about Grafton Township politics revolves around the defeat of those in control of the board–the Township Trustees–in getting their dream of a new building constructed.

At last year’s township meeting, with over 700 attending, the electors overwhelmingly voted to unwind the loan, that is have the township repay the road district the borrowed $700,000.

For whatever reason, the Township Trustees delayed in doing so until after a citizen-initiated referendum on the question of building a new township hall overwhelmingly lost last November.

Meanwhile Supervisor Moore and her allies wanted all of the money paid back at once so the loan could be repaid to Harris Bank.  Under terms of the loan, the bank will not accept partial payment, so interest must be paid until the entire amount is tendered.

In addition, the Road District will charge Grafton Township rent each month until the loan is repaid.

That issue was argued at a Special Town Meeting before the Annual Town Meeting Tuesday night and Moore’s supporters lost their effort to force a lump sum repayment.

At Thursday night’s regular township meeting, Moore followed the wishes indicated by the Electors’ votes.

Mentioned many times by those in opposition to the lump sum repayment was the fact that an audit of last year’s books is overdue.  The reason for the delay was the Wayne Brown accounting firm did not want to start prior to the end of the separation of powers litigation filed by Moore when the Trustees decided to hire Pam Fender as Township Administrator to do everything legally possible without her being the Township Supervisor.

This was found by Judge Michael Caldwell (the same judge to stopped the new township hall) to have been done improperly. In short, he found the Trustees had overstepped their bounds, that the Supervisor was in charge of the day-to-day business of a township. the same way a village president is in charge of the day-to-day business of a village.

The lack of an audit was brought up Thursday night, with the Trustees asking for a firm that was not located in McHenry County.

Moore had two suggestions, which, coincidentally, were both non-McHenry County firms.

The Trustees decided they want a presentation from both firms.

As usual, the meeting was free form, which is to be expected for a governmental body that has voted not to follow Roberts Rules of Order.

Trustee Gerry McMahon lived up to his reputation of shouting loudly a couple of times.

But, unlike past meetings I have attended audience members added to the disrpuption of decorum.

There was the usual talking over one another between Moore and the Trustees.

Unusual were fights that Moore picked with Township Assessor Bill Ottley over paying the second installment of a bill for new computer software and with Township Road Commissioner Jack Freund over the fixing of a shed that it turns out that salt pushing outward damaged.

Both clearly resented Moore’s intrusion in their balliwicks.

In other action, the Trustees refused to pay Linda Moore’s separation of powers lawsuit attorney, John Nelson, stating they wished to contest his hourly rate of $250.

They deferred payment to Richard Cowen, the attorney that Moore consulted prior to engaging Nelson.

Cowen’s name appeared in the meeting packet as being a speaker on “Township Personnel – Who Hires, Fires and Controls” at the Township Attorney’s Association meeting on in Bloomington on May 6th.  No Ancel Glink attorney was listed on the program.

I took a lot of notes and could give provide a pretty good blow by blow, but these Grafton Township meetings last too late and I’m tired.

Attorney Nelson also attended the meeting and took a lot of notes.

 

Again yesterday, Judge Michael Caldwell set back the date he will hand down a decision in the suit filed by Grafton Township Supervisor Linda Moore against the Grafton Township Trustees and Ancel Glink, the law firm giving the Trustees legal and political advice.

Now the date to put on your calendar is November 15th.

I’m losing count. Was today the fourth day of testimony in the Grafton Township separation of powers suit?

Maybe it was that I arrived by the expected start time, but an argument over a Temporary Restraining Order wanted by the McHenry County Health Department on a two-year old issue postponed testimony until 1:30.

In any event at least I remembered to take a cushion to soften the hard bench in Judge Michael Caldwell’s court today.

But listening to the who hit whom when and where is wearing on me.

If the question is whether Grafton Township government is dysfunctional, that has long since been proven.

Again it was Township Supervisor Linda Moore’s political enemies on the witness stand.

First up was a Forensicom “Senior Forensic Examiner” testifying that his firm had not finished its work because it had not been paid by Grafton Township. While not privy to contractual details Yoniv Schiff explained how people he supervised in the six-man firm for whom he works, copied a computer “in Pam’s office” and told a server to Chicago to copy because it was taking too long in Huntley.

Schiff explained how a program called Eraser, one version of which is available over the internet, was used to erase data from the computer, but not the server. February 8th was the day version 5.8 of the program was installed on the computer. It was “run against specific files and over(wrote) the data on those files,” he said.

The folder erased and overwritten was called “QuickBooks.” It “was sent to the recycle bin for deletion.”

On February 9th, he continued, “a flash storage device was attached to the computer.”

March 2nd saw “two separate external hard drives…attached to the computer.”

Under cross examination by Moore’s attorney John Nelson, Schiff revealed that his firm had been retained by Ancel Glink.

Admitting his lack of computer expertise, Nelson revealed,

“I want you to understand that the next email I send will be my first.”

Schiff confirmed that whatever was erased can be recreated, although he testified that he had not don’t any actual examination of the computer, rather his study was on “the forensic images of the computer.”

“At this point there is no evidence that an eraser program has been installed in the server?” Nelson asked.

“That is correct,” was the reply.

When asked whether February 29th was the only date the flash storage device was used, Shirff did not recall.

Schiff couldn’t testify to what happened when the external hard drives were attached because his firm had not been paid.

“Did you discover any deletions from a year prior?” Nelson asked. “Did you examine for that?”

“No,” Schiff replied.

There has been talk that Moore’s predecessor removed data from a township computer before leaving office.

The Judge asked some clarifying questions including one concerning the server. Schiff explained that his firm had “not determined what, if any, metadata (“data about data”) has been removed from the computer.”

Next up was Dina Frigo, the former Township Clerk.

It was pretty obvious she and Moore didn’t get along.

“Not a very pleasant relationship,” was how she started her testimony.

She intimated that Moore had a key to her office and had put a copy machine and files inside without her knowledge or permission. Moore had previously denied that and on cross examination, pointed out that if Moore had a key she would not have had to file Freedom of Information requests about which Frigo complained.

Moore did say that the building’s landlord, the Township Road Commission had keys to all the rooms.

How many FOI requests?

“Too numerous to mention.”

“You’re telling me you received FOI requests for information that was in the township hall?” Judge Caldwell asked.

“Yes. She would FOI my mail, too.”

Frigo did quote Moore assistant Trudy Jurs as asking via email, “Will you please give me information on the xerox I placed in your room?”

Frigo reported that Moore had opened her mail, specifically citing one from the Local Archives Division of the Secretary of State’s Office.

There were accusations concerning Moore’s putting up and taking down meeting notices.

Re-enforcing testimony was provided that Moore usually kept the door to what used to be the reception area closed and locked.

Frigo generalized about Moore’s treatment of her. A sample follows:

“She was getting hostile, persistent, argumentative. You could not talk to her at all. I’d excuse myself from the situation.”

Then there was the Milestone Mortgage call.

A representative from the firm called to verify Frigo’s employment and how long she had worked for Grafton Township.

Did Moore refuse to do so out of privacy concerns?

No way to know.

Under cross examination Frigo admitted she had not told Moore that a mortgage company might be inquiring.

All apparently ended well because McHenry County Clerk Kathie Schultz was able to fax the evidence needed to the firm.

It was again pointed out that Moore did not have contact information for the Grafton Township Food Pantry as she provided for other ones.

On December 17th, Frigo said she filed a police report because she thought Moore had used a date stamp that was unique to her office.

When asked why she resigned, it was because

“I could not work with Linda Moore anymore. It was very stressful for me and my family, the continual turning things around, twisting things…”

“When you resigned, didn’t you say you resigned because you had obtained full-time employment?” Nelson asked.

“That was one of the reasons,” Frigo replied.

Just before, the court learned Frigo was working for Huntley School District 158 as a lunchroom worker and recess person. The word “substitute” was used but I didn’t catch with regard to which assignment.

Disputes over the content of minutes Frigo wrote, which were not approved until after she resigned took up a good bit of time.

Nelson inquired about when the Food Pantry was moved out of the township office complex.

Despite being on its board, Frigo couldn’t remember.

Nelson sought specifics about what Moore had said she did that she didn’t do and what she said she didn’t do that she did and got a few.

Frigo revealed to the Judge that the Township Board stopped operating under Robert’s Rules of Order after revealing board meetings under Supervisor Rossi lasted ten minutes to an hour, while those after Moore took office lasted 3-4 hours.

She was asked the question about which I filed a Freedom of Information request:

Did she recall the board under Rossi ever voting on the hiring or firing of any attorneys?

“I can’t recall off hand.”

The next witness was Frigo’s successor Harriet Ford.

Township Trustees’ attorney Thomas G. DiCianni put into evidence seven sets of township minutes. Nelson observed they “do not bear your seal” when he questioned her.

“She can certify by seal or testimony,” DiCianni said.

Nelson asked Ford the same question I had filed a Freedom of Information request about, that is, whether any of the minutes report the “hiring or firing of any attorneys?” as Trustee Rob LaPorta had affirmed on the last court date.

“I’m unaware,” Ford replied.

At 4:40 the last witness of the day, Trustee Betty Zirk, took the stand.

She was asked if the Grafton Township Food Pantry had ever been an official part of Grafton Township.

The answer was, “No.”

She went through what appeared to be rehearsed answers to questions about her views of the duties of township trustees.

In answer to a question of whether she was “motivated by a political dispute over a township hall,” she answered in the negative.

She was asked how she voted at the 2010 Annual Town Meeting.

She said she voted with the majority.

“It’s just we’re having problems with some of the duties,” she said.

The locked door objection was reprised,

• as was the intercepting “some of our mail,” including one from the Herb and Jack Franks law firm,
• as was Moore’s not having presented a proposal of Brown Accounting to the board for the 2008-2009 audit,
• as was charging Rutland Township senior bus riders $3, instead of the $1 charged Grafton Township residents,
• as was not paying the Huntley Chamber of Commerce dues, as was the firing of part-time employees by Moore,
• as was the budget (“We found so many problems. I finally said it was time to have the auditor come in and revise it.”),
• as were meeting agendas,
• as was the delay in payment of Attorney Jim Kelly’s bill for representing the trustees in their appeal of Judge Caldwell’s “You can’t build the township hall without giving proper notice” decision.

Four of the Grafton Township Trustees coalition left the courthouse first today.

Court adjourned just before 5 PM. The ceiling lights blinked out as I was approaching the stairs.

10 AM is the time court begins.

It’s the trial between Grafton Township Supervisor Linda Moore and the Grafton Township Trustees consisting of Robert LaPorta, Betty Zirk, Barbara Murphy and Gerry McMahon.

At the last hearing, Township Administrator Pam Fender, appointed by the township board to supplant Moore in as many functions as legally possible, testified that Moore had not cooperated with her.

In addition, Township Trustee Rob LaPorta, the floor leader of the trustees, testified as to the difficulty of getting along with Moore.

One point LaPorta made was that attorneys had been approved by the township board under Moore’s predecessor John Rossi.

I have filed a Freedom of Information request asking for newly appointed Township Clerk Harriet Ford to produce any pages of minutes from 2005-2009 that would verify that sworn testimony, but have not received a satisfactory reply.

I even narrowed my request by listing the legal firms that had received payments under Rossi with their first and last payments.  I figure board approval would have come before the first payment and termination would precede the last payment.

Here is what included:

• Ancel Glink – the first payment I found was 6-20-5 for $1,110.  The last significant one was $5,878 on 8-14-5.  Another $87.50 was paid on 3-24-6
• Chapman and Cutler – $15,000 on 8-11-8. This is the only bill.
• Matuszewich, Kelly & McKeever – The first bill ($2,850) was paid on 7-11-6.  I am informed that Linda Moore terminated the first when she took office, but bills were being paid well into the first year.
• Militello, Zanck & Coen – I see a 5-9-5 payment for $50 and a 7-15-5 payment for $100.

I told Ford after last Thursday’s meeting that a statement from her that no such minutes can be found would be adequate.

In any event, the trial will resume in Judge Michael Caldwell’s court.

I’ll be sitting on the hard seats, so you won’t have to.

According to the First Electric Newspaper, the firm hired by the Grafton Township Trustees to investigate whether Grafton Township computers had been tampered with sent an email last night complaining of not having been paid some $15,000 and released some findings.

You can find the details here.

Pete Gonigam reports that an email was sent to Trustee Rob LaPorta, which he read after the meeting last night.

In the continuing separation of powers trial, Supervisor Linda Moore has already testified that she asked her computer guy to remove the financial information, which she took home nightly and reinstalled in the morning.

“I choose not to use the server in my office. It’s unnecessary. The use of a server is another example of my predecessors waste of the taxpayers’ money. In an office the size we have, we can network computers without the need for a server,” Moore said.

So how many times did the “Family Feud” Grafton Township Board meet in the first year since Linda Moore replaced John Rossi as Supervisor?

Past boards have met once a month, plus the Annual Town Meeting of Electors.

The Supervisor and Clerk get paid a salary, but the Township Trustees get $100 a meeting.

You can do the math to figure out how much the Trustees could have earned had they attended every meeting.

A November meeting that Township Trustees boycotted. Sitting at the table are Road Commissioner Jack Freund and Supervisor Linda Moore.

5-21-9

5-26-9

6-17-9

6-25-9

7-6-9

7-9-9

8-13-9

9-3-9

9-10-9

9-22-9

10-8-9

10-29-9

11-12-9 Trustees boycotted meeting.

11-16-9 Trustees boycotted meeting.

11-18-9

11-18-9 Trustees boycotted meeting.

11-24-9 Trustees boycotted meeting.

Feb. 22, 2010, Grafton Township budget meeting.

11-24-9

12-10-9

12-17-9

1-14-10

2-11-10

2-22-10

3-2-10

3-11-10

3-23-10

And with all the meetings since October, don’t you think there might have been time to approve the October minutes that were unavailable when I filed a Freedom of Information request?

Newly appointed Township Clerk Harriet Ford wrote,

“Apparently, the Township board has previously reviewed them and found them to be inaccurate. I need to review the tapes of the October meetings, which I understand were very long meetings, in order to prepare correct minutes. I will be happy to make the minutes available once they are approved by the Township Board.”

Ford then goes on to suggest Grafton Township Freedom of Information Office (and Supervisor) Linda Moore that she should advise me that

“to the extent that these documents are not yet available and they are are exempt from FOIA, because there are no documents to produce yet. To the extent that incorrect preliminary draft minutes exit, they are exempt from disclosure under Section 7(f) of FOIA. One the minutes are approved by the Township Board they will be made available for public inspection within 7 days, in accordance with Section 2.06(b) of the Open Meetings Act.”