Ludington's Sesquicentennial Cups of Corruption

[XLFD]

In the April 24, 2023 Ludington City Council Packet, we find on page 149 a first-of-its-kind-in Ludington disclosure statement made by Community Development Director Heather Tykoski (pictured above with Nick Tykoski) in regard to an agreement between the City of Ludington and her family's business.  

The Ludington Torch has pointed out here and at council meetings that Heather Tykoski's, and her spouse, Nick Tykoski's, ability to pull in profits for their private businesses by contracting with the City of Ludington (where Heather has served as Community Development Director over that period and Nick has served it as a councilor and firefighter).  I would estimate that at least once a year over the last fifteen years, the Tykoski's have unethically made financial gains of substantial nature due solely to the influence they wield at city hall; state law allows such agreements/contracts to exist with parameters created to make sure it would not be conducted corruptly. 

Disclosing the pecuniary interest before such agreement is made by the City is just one part of this process and it was welcomed to see this happen for once after about two dozen occurrences when it didn't, but it looked as if other parts of the process was ignored and so we made a FOIA request to the City asking for:

1) the estimate from Tye's/SD showing that the cup purchase will be around $2400.
2) the estimates from any and all other companies contacted to create sesquicentennial cups
3) any correspondence between city officials and any contractor (including Tye's/SD) regarding sesquicentennial cups

Surprisingly, they requested extra time for what would be a simple public records request.  There would be a one-page estimate from Safety Decals, no other estimates from other companies and effectively one basic email chain with a branch between some city officials and Safety Decals employees.  The full correspondence is shown below in chronological order, followed by analysis:

A limitation of the FOIA is that you cannot see verbal or telephone communications for a public body, so some connecting of the dots must be made for any gaps by using what we have.  It looks as if Nick Tykoski actively approached Mayor Mark Barnett to hawk sesquicentennial cups and some arrangement was made by Barnett, with City Manager Mitch Foster's knowledge, to get 90 full colored (for the logo), stainless steel insulated 20 Ounce cups and have them made before the kickoff celebration on March 22nd.  This reporter was at that celebration and saw no cups, even though at least 36 had already been made, no reference to these cups was made in the kickoff's lengthy press release.  Additionally, the estimate shows 90 cups would cost the City of Ludington $1800, not the $2400 claimed by Heather in her letter to the council one month later.

Heather's letter also portrays that the City of Ludington and Safety Decals had not yet entered into an agreement, but the emails show Mayor Barnett approved this order of 90 cups on March 3rd and copied this approval to the city manager and Assistant City Manager Jackie Steckel.  His email would satisfy his approval of a written contract with Safety Decals under the authority of the City of Ludington.  The mayor has no authority to get the city into a contract for a substantial purchase, be it $1800 or $2400 without council approval under our city charter.  

And even though the cups have been made and money has likely changed hands, there is no record in the City's payment of the bills corresponding to the purchase of the cups, before (in March 2023) or since Heather's disclosure statement.  But the City's business with Safety Decals has increased quite a bit, here are some from the last meeting on April 8th for clothing and decals/signs:

One wonders where her disclosure statement is for these $900 in sales to the City by Safety Decals.  One would guess it's in the same place where the council approval of the $2400 or $1800 payment of SIC cups is:  nowhere.  

Before we recap the ethical issues obviously well-abused here by City of Ludington leaders, let's see what 90 full-colored, etched, stainless steel insulated cups would cost you if you were actually trying to get the best bargain and not supplementing your family's income by using your community development director position.  Consider DiscountMugs.com, where you can buy 120 blank SIC cups for only $577.49 delivered and taxed, but if you want 90 SIC cups with full color customization etched on both sides it will cost you $866.66, less than half of what Safety Decals offers if they followed the estimate, or about a third of the $2400 figure made by Heather in April:

So here's a summary of what we have.  Former Councilor Nick Tykoski, wife of current CDD Heather Tykoski, approaches Mayor Barnett with some SIC cups that he says he can customize for $20 apiece, and Barnett orders 90 of them on behalf of the City for the kick-off celebration for the sesquicentennial, but they are nowhere to be seen during that event.  Heather eventually discloses the business transaction, saying it has yet to be approved by the council, and it hasn't since the contracts already been made, but there has been at least three other purchases from Tykoski's business approved since without any disclosure. 

The cups, whose purchase and purpose have still not been explained (nor has the jump from the estimated $1800 to $2400), could have been made much cheaper without sacrificing quality by going through other companies had the mayor and administrative officials with oversight (Foster and Steckel) decided that the arbitrary making of sesquicentennial cups should be done with purchasing rules supplied by the city charter rather than using a crony company with undue influence in city government.

In regards to law governing ethical conduct by public officers, the conduct presented clearly violates sections 1, 3, and 4 of the city code, sec. 2-72 and in state law standards for public officials found in MCL 15.342, sections 3 to 6, and from the law Heather states in her disclosure letter, especially section 3(2), after following only subsection a, but not b and c:  

The approved minutes of April 24 shows no mention of any of the particulars and just a nod by the city manager of the pecuniary interest being present.  The contract already approved by the mayor in March, didn't even get the council's late approval.  

If this is the best effort we can get from our city officials in their 150th year of our city's incorporation, we are going greatly astray from our ideals of public service and ethical conduct we deserve just because some officials feel that they are due costly mementos of their service and that money should go to the most unethical city official Ludington may have ever seen, and her wife.

[Freedom Seeker]

Corroding, continuing corruption. Disgusting dirty deeds.

There are not enough penalties or controls in this free-for-all of corruption by overly paid city officials corruptly lining their pockets on top of their cushy over-paid job with benefits unheard of in local areas.

Where are the competitive bids?  Where are the announcements of bid processing?  Shame on YOU Mark Barnett?  Good Ole boys again corrupting, misusing and abusing  taxes and their positions.

$2400 for what could have been done online for less than $900 (and have delivered the product).  Corrupt, way too much money, unfulfilled product, secret squirrel bids and then arrogantly drive around in the newest vehicles.  The only thing we take with us in the end is our character.

[XLFD]

There's just so much here that is done without following policy and in a way that seems totally corrupt-- but for a last-ditch effort made to try to comport with part of a state law after the contract had already been in effect for over a month.  This is more of a streamlined form of corruption that Barnett and Heather Tykoski tried to perfect over a decade ago when John Shay and John Henderson were their enablers.

[Freedom Seeker]

True X.  This continued "streamlined" corruption is really troubling.  A vote for Barnett as mayor continued the spiraling corruption and deceit.  In re-reading your article trying to absorb the depth of the arrogance of this corruption, I think your last statement is confused as to whom is the most unethical city official ... it should read:  his wife.  I would think she is the driving force.  Tyloski himself is perhaps just a pawn for her unending greed and arrogance.  What would it take to prosecute these actions?

I wonder, over the years how much the Tykoski's have stolen from the city with these behind the secret door deals?  Is it a BMW or a Mercedes?

[XLFD]

You introduced us to the Mercedes mentality five years ago, FS, the bottom line has only improved since then so consider it beyond that, like a BMW for him a Mercedes for her.  

Excuse me for introducing confusing pronouns, but back when Nick and I were on the LFD and he was courting her, one could tell who was dominant and who was submissive in the relationship, and it was common side talk among firefighters and others noting that there almost seemed to be a role reversal in the relationship.  Even though Nick has become a successful businessman in his own right and a former city councilor, that relationship dynamic still seems to be in place from my perception and reports I've heard.  

So, I set up the last paragraph in the fourth to the last paragraph by saying:  "...Nick Tykoski, wife of current CDD Heather Tykoski, approaches Mayor Barnett..." and then ambiguously referred to an individual in the last paragraph... and 'her wife'.

Pronouns in this day and age are confusing, so if one was to consider Heather as masculine in the relationship, maybe saying 'his wife' would be appropriate as you say, but I have a hard time doing that since she has oft used feminine guile to her advantage throughout her career when needed.  

Suffice it to say, the ambiguity is left to the reader and I can hope that Nick and Heather can settle among themselves about who is the most unethical Ludington official ever-- they both have good arguments to further their case.  They used to be called Ludington's power couple, but they are more aptly then and now to be called Ludington's corrupt couple.

[Freedom Seeker]

I missed the pronoun subtility...a story in its own. I wouldn't be interested in their personal affairs, who wears the pants or sets the household rules or goals except when the arrogant Mercedes mentality affects our city business, breaks the law and takes money out of the taxpayer pockets. Thanks for the reminder, I honestly couldn't remember which car company drives our city. Otherwise i think Tykoski has a pretty good heritage of businessmen in his family. Maybe his wife may have an inferiority complex that makes her want to "be above the Joneses."

[XLFD]

Another quandary I noticed during our written conversation, FS, is that the estimate prepared by Safety Decals makes no statement as to MI sales tax being applied to the $1800. which would be significant at $108.  This subsumes that either SD is trying to sell this stuff under the radar or that they expect their client to have a government exemption for this sale.  

But for the latter to happen, the COL should have had to send this form to SD before that showing the nature of their exemption and copy of such form should have been provided through the FOIA request as worded.  The appearance of this form would also show that the purchase was for legitimate government expenses, not for cup trophies among city officials as it appears now.  Since exemptions are not claimed, it appears Safety Decals is actively avoiding sales tax too, unlike the company selling their wares on the internet who assesses state sales tax in their final tally.

[Freedom Seeker]

That's even more disturbing that sale taxes are possibly being evaded but seems typical for the characters involved. Maybe like Al Capone, the playing field could be leveled through the backdoor.  And for how many years has this been going on?

[Willy]

Great coverage on yet another crooked deal.

[XLFD]

Great graphic, can't wait to see it on the side of a SIC cup; maybe Mayor Barnett can order us some using his money rather than ours.