Mudron's Joliet Park District Contracts Don't Violate City Ethics Code

JOLIET, IL — Six weeks before voters determine whether to re-elect Joliet City Councilman Pat Mudron to a third four-year term, the city's office of inspector general has released an investigative report examining whether Mudron violated Joliet's code of ethics by providing insurance-brokerage services to the Joliet Park District.

The Feb. 9 report was prepared by Westmont attorney Sean Connolly and his private investigator, Martin Walsh. "Councilman Patrick Mudron did not violate Joliet's Code of Ethics by Mudron Kane Insurance providing insurance brokerage services to the Joliet Park District.

"Additionally, the Joliet Park District is not a component form of government with the city of Joliet. As a result, money from the city of Joliet Treasury was not used to pay Mudron Kane for the insurance brokerage services it provided to the Park District, therefore, Councilman Mudron did not violate Joliet's Code of Ethics."

The latest city of Joliet inspector general's report is not glowing for Mudron, however.

According to the report, "this investigation did uncover questionable past practices by the Joliet Park Foundation and its current president, Councilman Mudron. Park District records show Mudron Kane received $431,500 in premium payments from the Park District between 2012-2019. During this time, Councilman Mudron was a board member and officer of the Joliet Parks Foundation."

On Monday, Joliet Patch left Mudron a voicemail message seeking comment for this story, but he did not return the call.

According to Connolly and Walsh's findings:

• The Joliet Parks Foundation had cash assets of $1.2 million to $1.3 million as of its 2021 review. In 2017, the foundation provided $423,072 to the Joliet Park District and "the vast majority of this contribution was $335,000 dedicated to Pilcher Park road repairs ... Subtracting the 2017 contribution ... the foundation annualized average contribution to the park district is $29,000."
• "Even though it made significant monetary contributions to the park district, the foundation has a very low rating for a 501(c)(3) organization. Charity Navigator, a tax-exempt organization rating service, gave the foundation a rating of one out of four stars ... A one-star rating equates to a grade of 55 percent and indicates an organization 'fails to meet industry standards in most areas and underperforms most charities.'"

Last July 28, Connolly interviewed Brad Staab, executive director of the Joliet Park District, and Glenn Kelley, the director of finance.

During the interview, Staab explained Mudron Kane provided insurance services to the Joliet Park District in the past, but not anymore. Now, the Joliet Park District is insured by IPARKS and its health insurance is through United Health.

Staab explained the change was made because Mudron Kane was outbid by another insurance brokerage, and the park district chooses the lowest bidder to provide insurance.

According to the inspector general report, "Sean Connolly addressed a rumor that Mudron Kane was double billing the Park District for insurance services. Mr. Staab stated there was no double billing by Mudron Kane, however, there was double insurance at (the) same time. Specifically, insurance was being provided by both Mudron Kane and IPARKS. Mr. Staab also stated the city of Joliet does not provide any funding to the park district."

Connolly noted that the Joliet Parks Foundation raises money to support various activities and facilities of the Joliet Park District and Councilman Mudron has been a member for at least 12 years and has been president twice.

Last September, Connolly met with two executives of the Joliet Park District to determine if Mudron Kane Insurance still did business with them. Park district officials said Mudron's insurance company no longer provided insurance services to the Park District.

"Mr. Staab's statement about Mudron Kane being outbid may be accurate, but it must be noted Mudron Kane was never previously required to submit a competitive bid to the Park District because Mudron Kane was compensated under a 'professional services' agreement," Connolly's report showed.

In December, Joliet's inspector general office obtained more financial records from the park district showing Mudron Kane received $195,028 from the Joliet Park District between October 2016-2019 while Mudron was on the Joliet City Council. Mudron was first elected by Joliet's voters in April 2015. The payments to Mudron were for property insurance coverage and represented about one third of the park district's total insurance premiums during that period.

Last month, the park district provided more information to Joliet's inspector general, showing Mudron Kane was paid $236,480 in premiums from the park district in August 2013 through June 10, 2014.

"Mudron Kane and the additional insurance brokers were not vetted, nor were they required to submit competitive bids, according to park district records," Connolly's report for the city of Joliet revealed. "Mudron Kane as well as the other brokers, were compensated under a blanket 'professional services' agreement. According to the best information available, all contracts for insurance services were no-bid agreements."

Still, based on his review of park district documents, "Councilman Mudron's business relationship with the Park District did not violate local or state ethics laws or ordinances ... the city of Joliet has no financial interests or direct influence over the park district ... While Councilman Mudron did not violate the city of Joliet's Code of Ethics, he may have violated policies governing conflicts of interest for charitable organizations while a member of the Joliet Parks Foundation board," Connolly's report outlined.

Connolly's final two recommendations read as follows: "That no disciplinary action be taken by the city of Joliet against Councilman Patrick Mudron. That the Joliet Parks Foundation and the Joliet Park District each investigate whether Councilman Patrick Mudron's involvement as a voting member of the Joliet Parks Foundation, which Mudron Kane provided insurance services to the Joliet Park District, was in fact a conflict of interest."

In the April 4 municipal elections for Joliet City Council, the following candidates are on the ballot in District 2: Mudron, Quinn Adamowski, Bob Wunderlich and Glenda Wright McCullum.

Last August, Joliet Patch broke the news that a 78-page report prepared by Joliet's out of town inspector general determined that Mudron violated the city's code of ethics by obtaining a no-bid $248,000 contract last April to provide the Rialto Square Theatre with insurance coverage.

That report asked the Illinois Attorney General's Office to investigate Mudron. However, no action has been taken by the attorney's general office against Mudron in the Rialto insurance matter.

Related Joliet Patch coverage:

Whistleblower Jim Capparelli Busted Councilman Mudron, Here's Why

$248,000 Rialto Contract For Pat Mudron Violated Ethics Code: IG

Mudron Violates Ethics Law With Joliet Museum Insurance Deal: IG