Gary Airport Authority Fails to Comply with Davis-Bacon; Other Legal Requirements

by Ken Davidson

The Indiana State Board of Accounts has issued a comprehensive report indicating that the Gary Chicago Airport Authority (GCIA) failed to comply with the Davis-Bacon Act which requires prevailing wages be paid on public works projects. The stunning finding was just one of many findings by the Board. In so finding the Board stated:

Davis-Bacon Act

Airport Management relies upon paid consultants to ensure compliance with the Davis-Bacon Act
(payment of prevailing wages).

1. The contractors submitted payment applications to the Project Engineers. Before the Project
Engineers approved the payment, the Project Engineers must receive the certified weekly
payrolls from the Contractor. The Project Engineers stated that they ensured the wages paid
equal or exceed the applicable prevailing wage rates. However, no indication was made on
the copies of the certified payrolls or other forms of documentation maintained as evidence
that such reviews were conducted.

2. A system of controls to ensure all certified payrolls were received did not exist.

3. The management of the Airport Authority did not receive any correspondence from the paid
consultants to ensure compliance with the Davis-Bacon Act.

Additionally, the Board pointed out that the GCIA was required to repay nearly $10 million to the Regional Development Authority because it failed to properly account for the money. It appears that this finding may result in an additional $10 million in Federal and State grants requiring repayment. The Board found that the Authority billed invoices to the RDA, the US Department of Transportation and the Indiana Department of Transportation and received reimbursement from each. The system was supposed to provide a total of $9,917,559.93. Instead the GCIA received that amount from both Federal and RDA coffers.

The Board also found that the GCIA awarded change orders totalling over 20% of the bid price. The law states that change orders cannot exceed 20% of the total bid price.

The report goes on and on, reporting a litany of violations. This report covers the time period before the current board took over. You will recall that the Gazette has reported that Nathaniel Williams was President of the GCIA Board at this time. Nathaniel Williams was also in charge of maintaining the records at the Gary Housing Authority when they lost hundreds of properties to tax sale, failed to make repairs with grants that had been awarded and failed to utilize insurance proceeds to repair burned out properties. Mayor Karen Freeman-Wilson appointed Williams to the Airport position after many of the issues at GHA were discovered.

Sources Say LS Mayor, Wife Targets of FBI Probe

by Ken Davidson

 

On Friday FBI agents walked into the offices of Lake Station, Indiana at 1969 Central Avenue and ordered all employees to step away from their computers according to sources close to the investigation.  Although the Gazette has confirmed no computers were seized, the FBI reportedly got all the information it needed by using high tech equipment to download from the City servers.  This represents a significant step in an ongoing investigation.  You will recall that the indictment and arrest of George VanTil, the most recent indicted politician in Lake County, was preceded by a similar public FBI raid.  Not only is judicial review in the form of  a warrant required before FBI agents can take such action, the US Department of Justice has strict guidelines dealing with public corruption cases.

Sources say that the crux of the investigation centers around two incidents.   The first relates to using campaign funds for personal use.  Sources tell me this aspect of the case is unclear.  Several point to various expenses which appear to be personal but there is none that stands out when viewing reports of similar local politicians.

The second investigation is related to an “add-on” charge by a street contractor.  According to a source close to the investigation, the Mayor suggested he would get an additional charge approved on a construction project that was in progress.  In exchange, the contractor would pay the Mayor’s wife a sum of money.  Such charges are often scrutinized by the State Board of Accounts as well as Federal Prosecutors because they can be used to award bids to friendly contractors.  In many cases, the bid comes in low and the contractor then submits additional charges which are approved by the municipality.  Other contractors have no opportunity to compete because they are not assured of having additional charges approved later.  In this case, however, sources say the contract was awarded prior to the time of Soderquist’s election.

Soderquist is also on the governing board of the Lake County Democratic Organization.  If indicted, Soderquist would be the second current sitting member who is under federal indictment.

A Lake Station construction contract appears to be at the center of a recent FBI raid on city offices.

FBI Visits LakeStation IN.

FBI agents arrived at the office of Lake Station Mayor Keith Soderquist on Friday. Federal investigators had subpoenaed documents from Lake Station’s Board of Works. Sources say the computers were removed from the building and at least Three FBI agents were seen going into City Hall and talking to the Mayor.
In February, the State Board of Accounts audit ordered Soderquist’s stepdaughter Miranda Brakley , former court employee, To repay the city $13,130, money she wrongly received after she was fired in 2012. Miranda Brakey was a deputy court clerk responsible for collecting bond payments for the Lake Station. In 39 cases she neglicted to deposit The Funds totaling $16,464. A week after she was fired, the Lake Station City Council, moved two deputy positions from City Court Judge Christopher Anderson’s budget to the Clerk-Treasurer’s purview and Brakley was rehired. She received $468 for seven days vacation and $12,661 for unused compensatory and sick time even thought she only had 30 minutes of vacation remaining . Two weeks later, Lake County Superior Court Judge Calvin Hawkins issued a temporary restraining order against the Brakley’s rehiring…. more to follow later.

Mayor's Statement Dodges Police Questions

by Ken Davidson

 

2 Gary Code Enforcement Officers sit outside a business at 11th and Grant on Saturday evening

In response to the Gazette article regarding a large police presence at 11th and grant on Saturday November 2, the Mayor issued a statement which we will attach below.  The Gazette asked the Mayor for specific details on the use of police officers at that location including who authorized the use of most of the Gary police department.  You will recall that the Gazette reported that at least one officer remained at the property during most of the night.  Up to 9 officers were involved according to witness reports.

The statement issued is as follows:

"On Friday, November 1, 2013 the Code Enforcement Department, in conjunction with the Building Department, placed a "Do Not Occupy" sign on the building located on1434 West 11th Avenue and padlocked the gates surrounding the property.  Inspectors from the Code Enforcement, Environmental Affairs, and Building Department had previously inspected the property, and it was determined that there were serious safety issues concerning the structure. City ordinance allows for the Building Commissioner to make the determination that a building or structure cannot beoccupied. It was determined by the City of Gary that the structure posed an imminent threat to the health and safety of the public. On Friday, members of the CodeEnforcement team and legal department were present at the property to execute the
"Do Not Occupy" order issued by the Building Commissioner. On subsequent days, necessary measures were taken to ensure that the "Do Not Occupy" order was followed.

There is a hearing scheduled on November 15 on the City of Gary's Motion to Cease and Desist, which was filed August 2, 2013.  The City staff regularly reviews public nuisance related complaints and citations to ensure effective prosecution."

-Karen Freeman-Wilson

The Gazette continues to follow this story.

The Times Staff Reads the Gazette

by Ken Davidson

 

Mayor McDermott likes to warn people not to get their news from an “online news source” but apparently the staff at The Times does just that.  Once again The Times has picked up on one of our stories without giving us any credit.  Those who follow the Gazette will remember that they reported on the Hammond Police Officer’s house shooting about a week after we did.  They sort of picked up on the Cal Ripken comment story a  week late also.  Never mind that they SPONSORED the event and actually heard the comments.  They didn’t think it was news until we reported it.

Now they are picking up on a story third-hand without providing credit to The Gazette or CNET.  The Times reported today on the LG G2 theft in Gary as if it was their original crack reporting that broke the story.  To make matters worse, they even pilfered the original CNET theme of a possible delay in launch of the phone due to the theft.

Cancel your subscriptions folks, we don’t charge a dime.

 

Appraiser Joe Wszolek Honored by Porter County Republicans

by Ken Davidson

Government runs efficiently when it has people who go above and beyond in serving their communities. Joe Wszolek, “Appraiser Joe”, is one of those people. Wednesday night he was honored for that service by the Porter County Republican Party. Appraiser Joe was presented the Highlands Award by Portage Mayor Jim Snyder. Congratulations Appraiser Joe!

Appraiser Joe Wzolek holds the Highlands Award he received from the Porter County Republican Party.

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Councilwoman To Take on Incumbent in Gary

by Ken Davidson

The Gazette has just confirmed that council member Kimberly Robinson will take on current Calumet Township Trustee Mary Elgin. While walking out of the Mayor’s office tonight, Robinson responded affirmatively when asked if she would challenge Elgin in the 2014 primary. Robinson was then seen speaking with a reporter regarding the issue. Sources say she may not be ready to announce at this point but the conversation was overheard by many.

Elgin is finishing her third term as Trustee and has come under heavy criticism for the high administrative costs associated with the office. Last year, Indiana passed House Bill 1585 which required the Trustee to cut the budget to 12 times the statewide average for townships or Griffith would be allowed to leave the township. Elgin recently submitted a 2014 budget that did not even address the mandate to reduce spending.

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Good News for Gary, 10 New Police Officers Sworn In

Gazette staff

 

Gary Police Chief Wade Ingram addresses 10 new recruits today.

(Gary, Ind.) - Today at Gary City Hall, Mayor Karen Freeman-Wilson swore in 10 new
officers bringing the force up to a total of 232 officers. Scores of family and
friends crowded into the Gary Room to show their support.

"I am proud that you have chosen to be a part of our family," said Freeman-Wilson
after administering the oath."You are laying your lives on the line for us each day,
and we salute you for this major commitment you have made."

Police Chief Wade Ingram and his command staff were there to welcome the officers to
the force.

"This is a dangerous job where you will be working alongside us to get the bad guys
off the streets," said Ingram. "We are here to support you as mentors and to provide
comprehensive training so that you will have a long and productive career in law
enforcement."

After going through more aggressive training, the recruits are expected to hit the
streets in early spring.

See names of the officers listed below:

Diego Alvarez
Nickole Cobb
Keith Dowdell
Michael Franks
Andrew Germonprez
Brandon Hernderson
Keith Hojkicki
Nicretia Jones
Nicholas Sanchez
Curtis Stiles

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Abandoned Homes or Abandoned Homeowners?

by Ken Davidson

 

The Gazette reported on the IHCDA plan to assist Gary and other Cities in the elimination of abandoned homes earlier in the week. You can see that story Here in case you missed it. This is the second in a series of articles examining what got Gary to the point that there are an estimated ten thousand abandoned and vacant homes throughout the city.  Most homes in Lake County are assessed by the County Assessor.  In Calumet Township, that is not the case.  As discussed below, the office of Calumet Township Assessor Jackie Collins is responsible for assessing the values of homes in Griffith, Gary and parts of unincorporated Lake County.

The Mayor attributes the problems in Gary, in part, to the foreclosure crisis. The foreclosure crisis is a national problem that plagues nearly every urban area in the country. Gary, however, was hit less hard by the foreclosure crisis than any other city for two reasons. First, there was never a real estate bubble in Gary, Indiana. There was not a time when homeowners refinanced their homes and took large amounts of cash out because the values never rose rapidly. Second, Gary has a higher rate of homeowners with no mortgage than any other city in Lake County and probably the state.  State Senator Earline Rogers made no  comments regarding the cause of the crisis other than to refer to Indianapolis as the “Hoosier Holyland” which suggested to me that she blamed downstate lawmakers for the problems.

The Mayor and Senator Earline Rogers fail to mention the other likely reasons for the number of abandoned and vacant homes in Gary. We examined the lack of city services in a prior article (you can read that Here ). Lets talk about the taxation issues and how they cause homeowners to flee the city.

First, lets understand how properties are assessed in Indiana. The general assembly passed a law that allowed residents in certain townships to choose to keep or eliminate office of the township assessor. This was done by a referendum in 2008. The overwhelming majority of townships in Indiana who were given the choice eliminated the office of township assessor and county assessors are now performing the duties of assessing those areas in a more efficient manner. The voters of Calumet Township chose to keep their township assessor. That office is currently held by Jackie Collins.

This is the office that has failed to keep the Gary Housing and City of Gary properties off the tax sale rolls even when notified that the parcels are owned by a government agency. The City is now spending tens of thousands of dollars on private attorneys to retrieve hundreds of units that were erroneously taxed and sold. The same office that allegedly used public funds to send out flyers telling Gary residents that they may lose tax credits (statutory tax credits which are provided by the State of Indiana) if they did not vote to keep the office open. And this is the office that is responsible for determining the fair market value of land, buildings and personal property for all of Calumet Township.

Ralston Street was mentioned as one of the streets that received little in the way of City services at the IHCDA meeting, so I thought I would take a look at the tax values on Ralston. If we start at the corner of 24th and Ralston is one of those evil out of town landowners that was discussed by the politicians at the meeting. The home is assessed at $148,900. With a Gary Sanitary District Fee of $60 and a Little Calumet River Basin fee of $45, the total annual tax bill is $5,830.00.

Across the street, still at the corner of 24th and Ralston is an owner occupied home. It is assessed at $58,000 and has a homestead deduction (no mortgage deduction by the way). The total tax was $2008 last year but dropped to about $931.00 this year. There are late fees of $432.17 on a delinquency of about $1100.00 In order to avoid tax sale and stay in this home, the taxpayer had to pay $2067 in the first installment this year. The second installment of taxes due now is $443.39.

As you continue down the block, you finally get to some properties that seem to be properly assessed. INS Incorporated owns a home at the end of Ralston Street that is assessed at $12,000. There are others that show taxes in the range of $700 last year. No explanation as to why one homeowner, on the same block, paid nearly 3 times the tax last year and then was hit with another $432 in penalties.

The wild fluctuations in values from year to year and similar properties together with ever increasing fees have caused many homes in Gary to go to the tax sale. Even at the tax sale many homes remain unsold even for the amount of the delinquent tax. The market is that bad in Gary. People are not even buying homes for $2,000; yet residents are being charged that much and more for one year’s worth of taxes.

Forgotten Neighborhoods . . .

by Ken Davidson

 

The Topic was to be abandoned homes and what to do about them, but when the question and answer session began,  one term was used repeatedly: forgotten neighborhoods.   Several Gary residents, from nearly all sections of the City, got up and referred to their area as forgotten.  The descriptions that followed detailed a complete breakdown in the provision of city services.

One resident stated she was a lifelong Gary resident and had no desire to move.  She stated she had bought several other properties near her Ralston Avenue home because they were abandoned and she just wanted to maintain them.  “I don’t know how much more I can do” she stated with frustration after describing sidewalks that children could not walk down because of overgrown weeds.

The problems were echoed by residents from Tarrytown, Glen Park, West Side, Aetna, Small Farms, Black Oak and Horace Mann.  A Glen Park woman described how nice her neighborhood once was.  She described a block of abandoned homes and overgrown vacant lots.

But there was no buck stopping anywhere near Earline Rogers or Karen Freeman-Wilson.  The politicians pointed fingers everywhere but at themselves.  Earline Rogers said only two sentences;  in one she referred to Indianapolis as the “Hoosier Holyland.”  Mayor Freeman-Wilson pointed to the foreclosure crisis, out-of-state landlords,  and general economic conditions as root causes of the problems in Gary.  Although selective code enforcement was cited as a tool to be utilized to gain title to the abandoned homes which are not owned by the City, no one  was willing to address the numerous complaints of lack of basic city services including code enforcement and police protection.  The Mayor did state that they know where all of the abandoned homes are located.

To his credit, Lake County Treasurer John Petalas was the only County official to show at the meeting.  The County Treasurer and Auditor’s office have as much to do with the abandoned housing crisis in Gary as anyone else.  That folks, is the teaser for the next article.

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