$192,000 Spent On Amtrak Lobbying Without Council Approval

LAKE FOREST, IL — The revelation that Lake Forest paid more than $192,000 to lobbyists to push for an Amtrak stop without approval from the City Council has prompted a review of how the city handles spending. Following a finance committee meeting Monday night, the Council met in closed-door executive session for more than six hours over two days to discuss "personnel matters related to these lobbyist expenses," according to Mayor Rob Lansing.

Lansing acknowledged the previously undisclosed payments at the Dec. 4 City Council meeting. During the meeting, several members of a local community group called Citizens for ACTION (Alliance to Control Train Impacts on Our Neighborhoods) accused city staff of misleading the public and hiding the fact it hired a lobbyist.

They expressed fears the city was making a secret deal to let transportation authorities build a two-mile holding track to allow passenger trains to pass slower freight trains adding additional Amtrak trains between Chicago and Milwaukee in exchange for adding an Amtrak station on the west side of Lake Forest.

"This project has been beset by concealment and misrepresentation, practically from the beginning" said David Tanaka. "These disclosures were not the result of compliance by the City of Lake Forest with the public record acts, despite our numerous requests."

City Manager Bob Kiely said last week he authorized more than 18 months of payments to the Washington, D.C.-based lobbying firm Chambers, Conlon and Hartwell without City Council approval, the Lake Forester reported. Kiely said the firm was chosen because of its transportation expertise. It also has represented Metra and regional railroads.

Neither aldermen nor members of the public were made aware of the payments, which were funneled through the Evanston law firm of the city's attorney, Vic Filippini. He told the paper he continued handling the payments and was reimbursed by the city.

The payments were made in $9,500 monthly increments between March 2016 and October 2017, according to Kiely. He told the paper he and former Mayor Donald Schoenheider had agreed to launch the lobbying campaign and he had informed current Mayor Rob Lansing of it as soon as he took office in May. Kiely has been city manager of Lake Forest for 27 years.

"It should not have happened, and it won't happen going forward," he told Pioneer Press Thursday.

On Monday, Finance Director Elizabeth Holleb presented aldermen with four recommendations for changes. Some of them would have directly addressed the issues raised by the disclosure of payments for Amtrak lobbying from one of the city's two contingency funds – intended to be spent on "unexpected expenses."

Holleb suggested the chairman of the finance committee should also receive a copy of a monthly report of all spending from contingency funds. She also recommended disclosing the expenses before the charges are incurred, require approval of third party payments and seek recommendations for possible improvements to policies for handing contingency funds from an audit committee.

"I want to say a sincere 'Thank you,' really, to the Lake Forest citizens who brought this to our attention," said 1st Ward Alderman Jed Morris. "We were not aware of it, but I think I speak for the council when I say we very much appreciate the efforts that you did on this issue and bringing it to our attention."

Lansing said Monday night marked the beginning of a "methodical and careful" process to review the way the funds are used. He first learned of the lobbying campaign soon after taking office in May, but he said he only learned in recent weeks that it had been paid for out of a contingency account, the Lake Forester reported.

"Many of us are lacking a trust in city government, based on evidence of concealment of public funds and contracts," said Joanne Desmond, president of the Academy Woods Homeowners Association and member of Citizens for ACTION. "The taxpayers of Lake Forest believe there is much more that is hidden and we want to know exactly how much of our taxpayer money was spent to get the Amtrak stop."

Kiely told Pioneer Press he can spend up to $20,000 without the approval from aldermen and said he should have brought the issue before the City Council in May 2016 when that threshold was reached.

"He has 27 years of experience. This is not the mistake of a novice," said resident Kate Zimlich during public comment. "I think you need to understand people are upset about this. Trust takes years to build, seconds to break and forever to repair."

After adjourning from their closed session at 12:05 a.m. Tuesday, aldermen reconvened at 6:30 p.m. and continued in executive session until 9:15 p.m., according to City Clerk Margaret Boyer.

"When fact-finding is completed, the findings and any related recommendations will be brought back to City Council for discussion, any appropriate decisions and ample public questions and comments," Lansing said.

Jan. 16 is the next scheduled meeting of the City Council and the earliest it could take action on any accounting recommendations presented at Monday's finance committee meeting.

» UPDATE, Jan. 18: Aldermen Approve Special Counsel To Investigate Amtrak Lobbying Payments