Ludington City Council July 13, 2015: Code of Silence

[XLFD]

The meeting held the evening of July 13 had several important first readings of ordinances and other agenda items that should be dealt with in more detail than can be provided in one recap; suffice it to say that this article will concern itself only with what came up outside of the agenda for the fourth time at this meeting, and was still left unaddressed.  The three unlawful attempts at fraud that Ludington's Downtown Development Authority's Treasurer, Kathy Maclean (who also serves as the Ludington/Scottville Chamber of Commerce President) performed to the detriment of the people of this state. 

This was first brought up at the June 8th meeting (Ludington/Scottville Chamber of Commerce President, City Manager, L...) with no official comments, reiterated with more detail and evidence here (Fraud, Facades, Faeries, and Feigned Foolishness in Grantgate), brought up at a June 13 special meeting without official refutation (Ludington City Council Special Meeting, June 11, 2014: Revenue, Rev... and for good measure it was explained in more expansive detail on the first day of summer (Ludington City Council June 22, 2015 Meeting: The Quiet Game About ... all to thunderous silence about the ramifications.

The underlying support network for Kathy Maclean defrauding the State of Michigan, requires willing complicity from those who administer these applications, which falls squarely on the shoulders of the Community Development Director, Heather Venzke Tykoski, and the City Manager, John Shay.  To whit, Kathy and her husband, Dave Maclean, must fill out these state forms truthfully and then follow the rules set down by the state.  Before CM Shay signs the forms and sends them on, and before CDD Tykoski begins formal administration of the grant, they must be aware that the forms are accurate and complete.

They sent the application off to the state well before the Macleans had any title to the property at 102 West Ludington Avenue back in 2009-2010, and somehow they got around the obstacle of having to provide the state with a copy of that title (which didn't exist until months later).  This year, they were provided with the Maclean's application for façade grants that left out Kathy's involvement as the DDA Treasurer, which has oversight over the administration of funds going to her façade project, they deflected the $1000 gift from the DDA as a service they provide for façade applicants, yet there is no record in the minutes of this policy being in existence.  There is evidence they have done similar $1000+ give-aways to their members without any vote and without any explicit mention in any minutes of the financial gain involved.

The application also showed that the hundreds of thousands of dollars of rental rehab work done on the Maclean's property were all done so that these units could stand vacant, and not be used for housing primarily for low-income people of the area.  The rules for rental rehabs in Michigan require that the units created be either occupied or minimally marketed on their website for low-rent housing for the first five years they become available for renting.  The Macleans were done with the project in 2011 and started renting as our local paper reported in April.  Even Councilor Holman might be able to determine that they should be following those rules until 2016.

Kathy and Dave Maclean are not charity cases by any means, so why are they stealing public funds so brazenly and so lawlessly?  Why isn't anybody from local law enforcement or the city council confronting the issue of all these instances of fraud and corruption?  Are they afraid of offending the chamber of commerce, offending the powerful construction company that Dave Maclean is heir to, or just unwilling to break the code of silence for fear of what may happen to them by the rest of the local good old boy network if they do? 

Whatever is the case, I brought it up in front of the city council for the fourth time on July 13th issuing the challenge to correct the situation and restore our faith in our government.  For the fourth time, it was pretty much ignored, even though both accomplices, Heather and John, were present to proclaim their innocence if they desired to do so. 

They didn't.  Unfortunately, they know that via the FOIA, I have the Maclean's original rehab applications, relevant data concerning ownership, their most recent faux application, and other relevant records that show a pattern of deceit for all parties.  Therefore if they stated a defense for the charges brought forth, they would only look worse when the data came out proving they were fabricating stories. 

My public comment made at 7:00 into the video is transcribed below in full, dealing with Maclean and a couple of other topics of the day, which will be elaborated on further:

July 13, 2015 Ludington City Council from Mason County District Library on Vimeo.

"Let me first congratulate the City Clerk and Treasurer for their recent Michigan certification and training accomplishments in their respective fields.  Their dedication to such projects show that the voters of this city made wise picks. 

Let me also revisit the issue of Kathy Mclean, a city official, and her willing accomplices in this city hall, Heather Tykoski and John Shay, who have attempted to defraud the citizens of this state through their rental rehab and façade grant programs.  Since I have already brought this to your attention at the last few meetings, and received no acknowledgment of the widespread corruption involved, I will briefly restate the issues. 

First, Kathy's company KDMAC LLC applied for rental rehab grants for a property that wasn't theirs at the time, when the state mandates a title for such property.  Definite fraud.

Secondly, as noted in their recent application for façade grants, the rental units created by that sizable rehab grant were unfilled, nor were their occupancies advertised in direct violation of rental rehab rules.  This typically means that  KDMAC should repay this fraudulent use of state funds back as they reneged on their covenant with the state, not to mention the possible criminal penalties.

Thirdly, the grant application which was almost sent to the state failed to note the fact that Kathy was an official of the city, her part in the funneling of funds for this project as treasurer of the DDA, and an unlawful benison of $1000 to cover expenses without any vote of the DDA Board with her abstention noted in the record and the reason for that abstention. 

These are serious offenses that were assisted in each instance by the community development director and city manager, who signed the documents sent to the state with the assurance of these unelected city officials that they were accurate, when they most assuredly knew it was not.  These are not honest public officials.  Your lack of outrage suggests you condone such behavior by your employees.

Instead of making criminals out of people who have too much stuff for their garage to fit, people who fail to mow their lawn one week, or people who refuse to allow the city to conduct warrantless searches and then pay for the unwanted intrusion, let's make criminals out of those people who are officials and engage in criminal behavior, misuse public money and shatter the people's trust in their government.  Like the three people I have mentioned who have taken money under false pretenses from the people of this state and this city.  Be accountable to the people.

Let's include in that group the city attorney who did the same thing for three years with his overbilled charges to the city, which included funneling money to the very company you as a council are finally recognizing tonight, Utility Financial Solutions.  I have records showing City Attorney Wilson contracting with UFS via himself, then getting repaid by the city through his funnel buddy, John Shay in order to pay for a cost of service study.  You councilors must know that such a deal for the use of public funds of this magnitude could only be approved by you formalizing a contract with UFS first.  Not two years after the fact.

You should also realize that John Shay acting as the city's signatory agent in the agreement with the Rotary Club for the City Park Improvements is not a sound idea.  John is a member of the Ludington Rotary Club so he would be expected to have sometimes conflicting loyalties to both the city and the club.  It would be more seemly for the city's signator to be someone without rotary club affiliation so alleged improprieties can be minimalized.

When the new city park public restrooms are made can we make sure they serve their purpose?  Over the years, every single time I've tried to use those restrooms they have always been locked.  It's kind of like going over to the city marina to use their restrooms and finding out you can't use them.  You're locked out and each one says 'for marina users and their guests only'.  This despite the City's agreement with the state that their public marina have full public-assessable bathrooms.  Why have public bathrooms when the public can't ever use them?

On other material before the council, our city attorney introduces tonight ordinances that would allow almost unrestricted use of golf carts and ORV's on our city streets.  While it is a concept that should be looked at, why was there no public input used in constructing the ordinance?  I have seen no clamor for such an ordinance in Ludington.  Perhaps our City Attorney can tell us why his city, Manistee, has no such ordinance while he parades this proposal before us.

[The mayor told me my five minutes were up at this point.  It should be noted that the city attorney did not answer my question.  The rest of my prepared statement follows:]

There are no golf courses in the city, there are no off-road vehicle facilities in our city's parks, so what's the rationale behind allowing these vehicles on streets not made for them?   I've come before this council a couple of other times complaining about the safety hazards created by such golf carts driven by city employees on our streets and sidewalks, and the illegality of the same, in Ludington.

 

I offer this picture taken over this latest Gus Macker of three city marina employees driving down a sidewalk on a golf cart, displacing pedestrians as they went along Loomis Street.  They were breaking several laws before this ordinance, and they would be guilty of breaking several parts of this proposed ordinance, and yet I doubt whether they will see any repercussions because their last names are shared by several employees and officials of this city in our marina's ongoing nepotism-based hiring practices.  Thank you in advance for finally addressing these issues at the end of the meeting."

[Willy]

I'm curious about legal representation and or advice given City officials when they are naughty. Can the City Attorney advise them regarding the allegations you have brought to light? Can City officials even consult the City Attorney when accused of wrong doing. That in itself would seem to be a conflict of interest especially when the City Attorney has himself been involved with what appears to be corrupt behavior, especially when Shay and himself were the ones who supposedly resolved the overpayment issue which should have been looked at by an impartial committee or prosecuting attorney. The City officials are knee deep in crap but are maintaining a silent mode. Wouldn't it be nice if the newer Councilors grew a pair and did the job they were elected to do?

[XLFD]

With their new I-Pads our officials can covertly 'pass notes under the table' while the meeting is underway if they so desire.  As was noted with the attorney overbilling scandal, the officials sat mute about the issue for at least three meetings, finally the city attorney commented that it had been quietly resolved by the two officials complicit in the overbilling scandal, and no investigation done by any councilor to see what went wrong and to prevent it from happening again.  Why would you need to with Councilor Holman as head of the Finance Committee looking over every penny being spent (heavy sarcasm)?

There is one more council meeting before the next DDA meeting, where all of the gang should be present (Maclean, Shay and Tykoski).  If the Maclean controversy doesn't get addressed, further measures will be taken.

[AQUAMAN]

"The City officials are knee deep in crap but are maintaining a Silent MODE"! Yes Willy, its called evasion, to evade the truth, and NOT answer the consequences of such corruption. NO, city officials just duck and cover, and that's not prudent, truthful, lawful, nor ethical. Methinks I see no ethics in this council anymore. They answer to no one, except lest they forget, eventually, and not often enough, to the voters. What kind of public voter entrusts their tax funds to people that regularly and repeated act in mode's of silence when confronted over and over again with charges and proofs of fraud and corruption? It's not a competent nor awake voter that let's this happen, knowing full well all the facts, and let these people hold office for their full term. It's voters that are, for lack of better words, chicken-shits, yellow to the bone, non-patriot types, that must, at this critical point, look the other way, instead of coming to council meetings and voicing their rightful concerns and opinions. 

[Willy]

Don't forget the average citizen relies on the local newspaper for their information and since most of it is biased, incomplete and sometimes just inaccurate they, unknowingly, view what is going on thru a corrupt system which includes the LDN.

[Jasper]

I viewed some of Ed Hahn's video's on You Tube.  In comparing the COL Meetings with the City of Scottville's meeting's I am impressed with the interaction between the resident's who voice their questions(concern's) and they are addressed by the Commissioner's, Mayor, and the City Manager.

And, they have a three(3) minute time limit.  But, the City of Scottville is not anal retentive as the COL.  Perhaps, the COL should take a look at how the City of Scottville addresses the citizen's of Scottville.

And, imagine the Mayor of Ludington is from Scottville, who's parent's own Cox' Sale's and Service!  

To his credit Ryan Cox is a youngin' and it appears he is a follower rather then a leader.  Mr. Mayor Cox with his position as the Mayor of Ludington with the ability to make changes, but rather he chose to follow in the footsteps of his predecessor's.

[Jasper]

Furthermore, the COL Commission Members sit high above the Citizen's attending the council meetings.  IMHO, if one thinks is this much different then appearing in front of a Judge in a Court of Law.  The COL Council is not above the citizen's that pay their wages, and are meant to represent the people.  This seating arrangement is very condescending to the citizens' of Ludington.  Think about it!

The implication of this is of utmost important.  It implies the COL is above the lowly citizens' of Ludington.  If the Mayor(Ryan Cox) was not such a follower of the flock, he had the capability of implementing changes for the City.  But, it appears since he has been in office that he has no backbone.  

One would have thought due to his young age that he would bring new ideas,think outside the box for the best interest of the City.  Apparently, as demonstrated by his inactions, he is no different than his predecessor.  Sad!

[AQUAMAN]

Exactly right both Willy and Jasper. I have noted this before in much earlier threads on the City Council not having level seating with the audience. I too think this is totally condescending in appearance, and also in fact, by the tone of the council members. His Honor the Mayor, from memory, said he would bring new ideas and blood to the leadership of Ludington. So far, he's made absolutely NO efforts in this regard. He has steadfastly carried on the Henderson affair of lack of transparency and lies. He also hinges closely on the words and actions of CM Shay and CA Wilson, underlying the fact that he is NO LEADER, but another sheeple, in baby wolf's clothing. Btw, did you notice the Mayor's wardrobe at this meeting. It sure was not fitting attire imho. Dressing like he's at the beach, instead of head of city affairs, bespeaks in itself of his lack of respect for the job, and the voters at large. 

[Willy]

I to think sitting above the audience is condescending, however I can see the reasoning behind it. The higher seating gives those in attendance an unobstructed view of the Council and other representatives. None the less it is form of superior posturing and let's the people know who at the meeting is the most important.

[shinblind]

Since the Council sits there like a bunch of toads maybe they should have put in a more habitat friendly giant rock for them to hunker under. Come to think of it a herd of toads would be an improvement. 

[XLFD]

The council could reach the same effect by having 'stadium seating' for the audience, and properly indicate that their position is subordinate to the public, but your point is well-taken, Willy. 

Toads would be appropriate, because every Ludington councilor has toed the line for the last few years.

I sat in on the Scottville meeting tonight, and it was very egalitarian.  Everyone was on the same level, you could see the commissioners squirm under the table they sat behind, if they squirmed.  But it was hard for the second row to view all of the action as it took place. 

Scottville needs a bigger meeting room, but their commission is very interactive, diverse, and willing to engage the public.  They run a much better meeting than Ludington.  I will address some of the particulars in a future article.

[Jasper]

"I sat in on the Scottville meeting tonight, and it was very egalitarian.  Everyone was on the same level, you could see the commissioners squirm under the table they sat behind, if they squirmed.  But it was hard for the second row to view all of the action as it took place. 

Scottville needs a bigger meeting room, but their commission is very interactive, diverse, and willing to engage the public.  They run a much better meeting than Ludington.  I will address some of the particulars in a future article."

Total awesomeness you attended the Scottville Commission Meeting.  Yes, Ludington could take a few "tips" for certain!  Eagerly awaiting your "article."