McHenry County Blog

A really early commuter send me this email about campaign activity at the Crystal Lake Metra Station this Monday morning:

“Mary McClellan, District 3 County Board, was at Crystal Lake Metra station before 5:00 a.m. handing out campaign literature.

“Usually candidates come later, so those of us who are early birds don’t get to see them.

“If I were District 3, she would have my vote just for coming out, I appreciate such effort.”

A press release from the U.S. Attorney’s Office:

OWNER OF DEFUNCT AZTECA SUPPLY CO. AND HER HUSBAND SENTENCED TO FEDERAL PRISON IN CONNECTION WITH MINORITY CONTRACT FRAUD

CHICAGO — The owner of a defunct Chicago company once certified as a minority- and woman-owned business and her husband were sentenced to federal prison terms today in connection with public contract fraud involving projects at O’Hare International Airport and in the Village of Orland Park.

Aurora Venegas, the owner of Azteca Supply Co., who pleaded guilty to mail fraud, was sentenced to 26 months in prison.

Her husband, Thomas Masen, former comptroller and secretary of National Concrete Pipe Co. in Franklin Park, who pleaded guilty to lying to the FBI, was sentenced to 24 months in prison, following lengthy sentencing proceedings for both in U.S. District Court.

Venegas, 63, and Masen, 67, both of Naperville, were ordered to begin serving their sentences on Dec. 4 and Nov. 27, respectively.

Venegas also was placed on home confinement during the first six months of two years’ supervised release. Venegas was ordered to pay $482,850 in restitution, and Masen was ordered to pay restitution of $450,000.

“It is an especially serious crime because it involves public money,” U.S. District Judge Robert M. Dow, Jr., said in imposing the sentences. “What Ms. Venegas was supposed to be doing, Mr. Masen was doing and, as a result, the work wasn’t being performed by a [legitimate] WBE or MBE,” Judge Dow said.

The judge ruled that the government met its burden in proving that Venegas engaged in a scheme to steer minority contracts through her company, which collected nearly $9.7 million in fraudulent payments while acting as a sham minority contractor on runway and restroom projects at O’Hare International Airport for the City of Chicago between 2001 and 2008.

Venegas, who the judge ruled did not merit credit for accepting responsibility in pleading guilty, had admitted only that she engaged in a $57,000 fraud scheme involving a landscaping project at a new Metra commuter rail station for the Village of Orland Park.

Court proceedings showed that, following a November 2007 interview with Venegas by an investigator with the City of Chicago’s Inspector General’s Office, Venegas, Masen and others made it appear that Azteca maintained an inventory of concrete pipe at the National Concrete Pipe plant where Masen worked.

Venegas staged Azteca’s warehouse to make it appear that she kept inventory of other products, and she asked to borrow inventory from another company so that if an inspection occurred, Azteca could falsely convey that it maintained products that it claimed to sell.

The sentences were announced by Gary S. Shapiro, Acting U.S. Attorney for the Northern District of Illinois; William C. Monroe, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago.

“Chicago’s M/WBE program is the very center of the city’s efforts to provide economic opportunity for disadvantaged communities.

“We will continue to work with our partners in law enforcement to ensure those who cheat the system are punished appropriately,” Mr. Ferguson said.

Azteca was certified by the City of Chicago as a minority business enterprise (MBE) and a women’s business enterprise (WBE).

To obtain and maintain that status, Venegas falsely represented

• that she performed a commercially useful function;
• that she did not perform brokering services between Azteca and other companies; and
• that she was the only person who provided estimates for Azteca’s contracts.

Based on Azteca’s status as a MBE and WBE contractor for the City of Chicago, Metra provided reciprocal status for its contracts.

Venegas learned from customers what supplies they needed and caused Azteca to act solely as a broker in shipping those items from actual suppliers to customers in violation of MBE and WBE contract requirements.

Venegas and Azteca allegedly generated invoices to make it appear as though Azteca had complied with contract requirements when, in fact, Venegas and Azteca had played no role whatsoever.

Masen admitted lying to the FBI when he told agents that he did not direct Venegas and Azteca as to what Azteca should charge for certain goods sold to customers and how much Venegas should mark up those items. The government showed that Masen frequently interacted directly with Azteca’s customers and used Azteca as a “pass-through” to make it appear that customers were purchasing goods from Azteca when, in fact, they were purchasing goods directly from Masen’s company.

The government was represented by Assistant U.S. Attorneys April Perry and Paul Tzur.

Phil Pagano is gone as Executive Director of Metra and, under his replacement Alex Clifford, the agency has decided to drop the Ridgefield train station option.

“We are allowing the option on the land to lapse,” said Metra Board member Jack Schaffer.

He said “a total review of the college location and the Lily Pond Road location” will be undertaken.

“The college has gotten fairly energized and they would like to have a station near the campus, rather than Lily Pond Road,” the former State Senator revealed.

“The college has been consulted and with $5 gas on the horizontal, they (are more interested in a station than before),” he continued.

Asked on whose authority the decision was made, Schaffer said it was “on the authority of the Executive Director, but he consulted with the board Friday.”

= = = = =

Framery owner Jim Roden recently sent this letter to Metra about his concerns about locating a new train station next to Alexander Lumber in Ridgefield.

Jim Roden, owner of the Framery in Ridgefield has sent the following letter to Metra Chairwoman  Carole Dovis.

A copy was sent to the railroad commuter agency’s Inspector General Hillard Heintze.

Metra Board Chairman, Carole R. Doris
547 W. Jackson Blvd
Chicago, Il 60661

Dear Ms. Doris,

I am writing this letter in an effort to inform you of a very large concern with the proposed Metra station in Ridgefield.

There is a huge groundswell of distrust for the reasoning process so far displayed which purports the need of this new station.  I shall outline several issues.

First, there is the issue of real need.  How many train stations are needed in the area surrounding Crystal Lake?

Are you saying that the future population will require 5 stations in this short span?

There are already two stations within Crystal Lake.

There is a station in Woodstock.  There has been land donated to Metra for a third station, the Merryman property, along Lily Pond Road off IL highway Rt 14.

This location is within 2 miles of Ridgefield. Now, another station is proposed in Ridgefield?

What is the basis on which you think there is need of yet another stop so close?

The next concern.  For the sake of further discussion, let’s say you pull the rabbit out of the hat and demonstrate the need for a fifth station. OK, that brings us to the location for this fifth station in Ridgefield.

The “Town” of Ridgefield is, well, where McHenry County College is located.

McHenry County College is one of the biggest assets in this area.  It is among the area’s largest employers.  It brings 100’s of students, staff and faculty to this area daily.  Virtually all come and go via their cars.

Now, if there was the option of going to and from by train, the college would benefit from this easier access.

Hum, let’s think about that one.  Fewer cars on the road, less gas consumed, more riders for Metra… wait a minute, could this be planning for growth that actually benefits the community?

Nah won’t work. Make’s too much sense.

All right, again for the sake of further discussion let’s analyze further the placement of the train station in Ridgefield.

A large percentage of the traffic which flows from Crystal Lake north, and northwest travels on Rt 14 which connects to Rt 47 , etc.  Access to Ridgefield largely travels on the south side of the tracks on Ridgefield Road which connects to Rt 14. There is also heavy traffic coming on Country Club Road through Ridgefield, mostly going to and from the College.

McHenry County College is on the south side of the tracks but off of Rt 14. Its rear entrance is south of the college with the entrance off of Ridgefield Road, again, on the south side of the tracks.

If a station is built close to the college, access to it is a short walk. Is there a site on the south side of the tracks that will work?  I’m sure one has been considered, right?

Now we come to the cost of this station.

We all know about the proposed site on the north side of the tracks. Land costs, road access costs, road expansion costs, perhaps eminent domain costs, etc., and the impact on the immediate area have been studied.

There have been estimated costs on the north side site.

Have there been any on a south side location?

The same costs of course, will apply, no doubt.

Well…maybe not.

The land costs may be different.

The road improvement costs probably would be different.

Access off of Rt 14 definitely would be different.

Impact on the area would require much less displacement.

How would these costs compare?

North side vs. South side.

Would it be prudent to make a comparison?

Nah, that makes too much sense!

The decision makers must be right.

We’ll just do it their way….Hum, who are these decision makers anyhow?

Maybe we should look into their logic.

Who are, exactly, the powers that be in this case?

• Metra?
• McHenry County’s Board?
• The City of Crystal Lake?
• McHenry County College’s Board?
• The State of Illinois?

Is it too much to assume that whoever the powers are, their intentions are for the overall good of the local community.

Logic, common sense, and a total analysis of all possibilities must have been considered in their choosing the proposed site. Those things certainly were considered here, of course.

That is the duty of elected officials, right?

….Hum, as a stretch, could there be something else, some other reason for the proposed site to be where it is?

If we were to ask someone, say Sherlock Holmes, to find perhaps, another reason for this site, where would he begin?

He might first make inquiries along the line of who is to benefit from this site.

Let’s begin with who owns it.  Who will make the first dollars here?

Well raise my rent!!

Further investigation into public record reveals that the Chairman of the McHenry County Board owns the property, and stands to make a sizable amount of money if this site is confirmed.

Besides Mr. Koehler, is there anyone else in his circle who would also benefit? Could there be a present or former member of the Metra Board with like financial interest?

To view it from this perspective, ya can’t help but raise an eyebrow. Will a Sherlock Holmes reveal more that might be, well… common?

Politicians who benefit!

Nah can’t be.  This is, after all, Illinois.

Having the authority to authorize the disbursement of government funds is an enormous responsibility.

Extreme prudence should be used in doing so.

This station is simply not needed.

We all know of the famous “Bridge to No-Where.”  What we will have here is the “No Need Station!”

My name is Jim Roden. I live in Crystal Lake and own a business in Ridgefield.

I would very much like to arrange a time to meet with you and discuss these issues.

Very truly yours,

James Roden

= = = = =

Other articles that might be of interest (listed in reverse order of publication):

Saturday, 8-15-9 The Ridgefield Metra Deal

Friday, 8-14-9 Metra Votes to Purchase Ridgefield Station Site

Friday, 8-14-9 Craig Steagall Unleashes Broadside Against McHenry County Board Chairman Ken Koehler over Metra State Land Purchase

Friday, 8-14-9 Metra Scheduled to Approve Former Flowerwood Land for Station in Ridgefield This Morning

Thursday, 8-13-9 $1.5 Million Being Paid for Ridgefield Metra Site Half-Owned by McHenry County Board Chairman Ken Koehler

Thursday, 8-13-9 Metra Transparency Worse than McHenry County College’s

Wednesday, 8-12-9 Ridgefield Businessman Takes on McHenry County Board Chairman Ken Koehler over Proposed Metra Station

Friday, 8-7-9 Musings on the Proposed Ridgefield Metra Station

Wednesday, 8-5-9 Alexander Lumber’s Move to Ridgefield, Proposed Metra Station Implications

When I was picking up my son from Bernotas Junior High this afternoon a little after 2, I had to wait a long time to get through Woodstock Street.

Tree trimmers were out in force on Oak Street holding up traffic.

WBBM reported that the Metra train to Harvard was stopped at the Pingree Road Station, that passengers would be buses to stations as far away as Harvard and that the next train to Chicago would leave from Crystal Lake, rather than from Harvard.

No reason was given as to why.

I thought about driving over, but my son and I were on a mission—trimming the in-laws’ hedges in Wonder Lake.

Since then, the Crystal Lake Police Department has issued the following press release at 6:28 PM telling of what certainly sounds like a Phil Pagano copy cat suicide:

On Thursday, May 27, 2010, at approximately 12:56 PM, the Crystal Lake Police and the Crystal Lake Fire-Rescue Department responded to the area of Pingree Road, approximately 300 feet east of the train crossing, for a report of a pedestrian struck by a train.

Upon arrival, emergency personnel discovered the body of a male subject deceased at the scene. Train service was interrupted for approximately two hours while the scene was investigated. At this time there is no foul play suspected.

This case remains under investigation by the Crystal Lake Police Department. The subject has been identified however his identity is withheld pending notification of family members. Identity to be released at a later date.

The Pingree Road station is designed like European train stations.

Passengers can get from one side of the tracks to the other without crossing the tracks, as they must at most other Metra stations.

In the case of the Pingree Road Metra Station, there is a tunnel under the train tracks.

That makes the likelihood of this death’s being an accident remote, I believe.

Yesterday I drove a friend to Belvidere for medical treatment. I had about an hour to wait, so I went exploring in the city I represented in the Illinois House of Representatives for eight years in the 1970′s. Since I knew that the Amtrak route selected by Governor Pat Quinn when through the town, I wondered where the station would be.

I stopped on Business Route 20 (State Street) and took the picture above. I wondered if the little white building across the tracks might turn into a train station.

The train would be coming in from the east. The empty spaces you see on the left and right on the other side of the street to the east are parking lots. I drove down to see if Pat Mattison, the publisher of the Belvidere Daily Republican I knew, who was running Belrock Printing after he sold the paper, was still in there.

He wasn’t.  His old office and plant was now the new Belvidere City Hall. I figured someone inside would know where the new train station would be located. I hit the jackpot.

Alderman Andrew Racz was walking in the building as the woman at the City Clerk’s office was telling me that a display was inside the locked door. He recognized me and, while I couldn’t pull his name out of my ancient memory vault, I did remember his face.

He ushered me into to see the mayor, Frederic Brereton, who was outside in his reception area. I thanked him for his council’s having endorsed an Amtrak station in McHenry County before the McHenry County Board did. He told me there was a good working partnership.

Brereton showed me the display outside his office, telling me the train station was going to be across the street from City Hall.

“Go out the front door, stand in the middle of the street and look to your left. That’s where the station is going to be.” He told me that State Senator Brad Burzynski had gotten some state aid and that by eliminating a grad crossing by putting the station across Whitney Boulevard, he hoped that Amtrak might kick in some money as well, since the fewer grade crossing the better, as far as Amtrak was concerned.

So, I went outside, stood in the middle of the street and took the photo you see above. What will the station look like?

Here’s another drawing I found outside the Mayor’s office.

Previously McHenry County Blog has looked at the questions on the Healthy Communities 8,000 household survey concerning

• Parks & Recreation and
• Citizen Desires for More Services

Today we look at the transportation questions:

TRANSPORTATION

37-39. If you were to choose the highest priorities for spending McHenry County transportation funds, which THREE would you choose? (Mark only three)

(1) Improving existing highways by widening and/or upgrading intersections.

(2) Building or extending a limited access (possibly interstate) highway through the county.

(3) Adding and improving pedestrian paths, sidewalks and bike paths.

Slide of the location of the proposed Ridgefield Metra Station presented to the Crystal Lake City Council by Executive Director Phil Pagano.

(4) Establishing new train stations, increasing frequency of service and commuter parking.

(5) Improving car and van pooling to major work destinations.

Taxis at Crystal Lake Train Station.

(6) Expanding a subsidized taxi, van voucher program.

Where the CVS Pharmacy sits on Radow Road was annouced to be a bus station and park and ride facility for those using Randall Road in times past. The only park and ride lot near McHenry County sits north of the Wisconsin state line on Route 12.

(7) Creating more and improved “park and ride” sites for buses to Cook, Kane, Lake sites including Metra.

(8) Establishing scheduled bus service among major McHenry County communities.

Scheduled PACE bus on Thompson Road east of Wonder Lake.

(9) Expand on-call PACE transit, Dial-a-Ride

(10) Other (write in)

Can’t wait to see the answers to these questions. I do wonder where the question molders think McHenry County government is going to find enough money to build an interstate highway. And, where they would put it. There is one existing four-lane right-of-way. It’s what I first heard called the “Bunny Expressway.” In McHenry County it runs from east of McHenry between McHenry and Johnsburg, up west of Richmond to meet the Wisconsin interstate that goes to Lake Geneva.

This is the highway that rumor has it Arlington Park Racetrack owner Marge Everett bought land west of Richmond in the late 1960′s (secret land trust, don’t you know?) for a new track.

Without consulting local state legislators (at least those of us who were state representatives), McHenry County Republican Party Chairman Al Jourdan got this FAP420 designated a part of the Illinois Toll Highway Authority system when the Will County extension was approved. All McHenry County legislators voted against his plan.

By train even.

Here’s his itinerary for the day, provided by Green Party candidate for McHenry County Sheriff Gus Philpott:

May 21ST

8:16 am Rich Whitney takes the Metra west from Arlington Heights (8:16am).

9:01 am Rich arrives by Metra in Woodstock, 90 Church Street. Meets up with other Green Party candidates, Scott Summers, Bill Scheurer, Frank Wedig, Gus Philpott.

Meet press at Woodstock Metra station

9:15 – 9:45 am
Travel by bicycle Other World Computing, 2650 Bridge Lane. Approx 20 minute ride.

9:45 am – 11:00 am Tour their site, with CEO Larry O’Connor. Inspect Wind Turbine, LEED platinum buildings,

11:00 – 11:20 am
Bike out of there, back to Woodstock Metra station

11:20 – 11:45 Depart for Capron

11:45-12:30 Ride from Capron to Calendonia on the Long Prairie Trail

12:30 – 1:00 Stop for Lunch in Caledonia

1:00 pm Ride Calendonia to Rockford, approx 16-20 miles to Martin Park

2:30 pm Meet any other riders Martin Park, just South of the Riverside Bridge

3:00 pm Ride to 3 miles to Press Conference by symbol sculpture

3:30 pm Ride into downtown Rockford

Unless former Metra Executive Director Phil Pagano drove east on Hillside Road before committing suicide on the East Hillside Road tracks, he wouldn’t have seen the signs in opposition to one of his last significant decisions.

After giving Craig Steagall every reason to believe his and his partner’s land on the west side of the tracks in Ridgefield was the preferred location, Pagano came down on the side of land half-owned by McHenry County Board Chairman Ken Koehler.

Now yard signs are posted throughout Ridgefield and as far east as Oak Street on Hillside Road proclaiming,

NO METRA

I wonder what Pagano would have thought of them.

That’s what Crain’s Chicago Business is reporting online.

Phil Pagano lives in Covered Bridge Trails, which is located north of Hillside Road in rural Crystal Lake.

At a salary of $269,625, I can’t imagine any public official/servant living in McHenry County earning more.

Metra Chairwoman Chairwoman Carole Doris confirming what Crain’s Greg Hinz is reporting with the following statement, issue in mid-afternoon:

“I have called an emergency board meeting for Friday to discuss hiring outside legal counsel to complete an inquiry into reports of potential financial irregularities allegedly involving Metra’s Executive Director.”After becoming aware of certain questions within the past few days, I conducted a preliminary reviews of the matter which convinced me that a thorough review by independent outside counsel is in order.

Metra Executive Director Phil Pagano addresses the McHenry County Board with RTA Executive Director Steve Schlickman looking on.

“We will not comment on media reports until the review is complete. But I can assure our riders, Illinois taxpayers, and our state and local government partners that the review will be completed expeditiously and that we will take whatever steps are necessary to ensure the integrity and fiscal responsibility of Metra.”

Pagano was deeply involved in the purchase of the former Flowerwood property in Ridgefield for a commuter railroad station.

Prior to the August, 2009, announcement, Craig Steagall thought that his property on the other side of the tracks was the selection.

Pagano even met with him in his office.

Former State Senator Jack Schaffer serves as McHenry County’s representative on the Metra Board. He did not vote on the purchase of the former Flowerwood property. He was elected Treasurer of Metra last June.

Former Crystal Lake Metra Board member Don Udsteun, the political brains behind several election victories of former Governor George Ryan, is said to have given the Feds a journal of many years when investigators called him on taking money for helping direct Metra contracts to former Republican State Rep. Roger Stanley (R-Streamwood).  Stanley subsequently developed a thriving mail house, which served Lee Daniels’ House Republican Campaign Committee.

Udstuen, whom both Schaffer and I knew from Young Republican days in the 1960′s and subsequently, settled and lived in Crystal Lake until after his court troubles.    Udstuen’s day job was being the Illinois State Medical Society’s top lobbyist, although his job title was being head of the ISMS’ medial malpractice insurance company.