Ethics Complaint Racine County Supervisor Monte Osterman

Members of the Racine County Board of Ethics 730 Wisconsin Avenue Racine, WI. 53403 June 25, 2014 Dear Members of the Board of Ethics, In recognition of the following Racine County Ordinance: Sec. 2-421. Declaration of policy.

High moral and ethical standards among county public officials are essential to the conduct of free government, the board of supervisors believes that a code of ethics for the guidance of county public officials will help them avoid conflicts between their personal interests and their public responsibilities, improve standards of public service and promote and strengthen the faith and confidence of the people of this county in their county public officials. In recognition of these goals, the county establishes this code of ethics and intends that it apply to county elected officials, appointed employees, and appointed members of boards, commissions, committees and panels, hereinafter collectively referred to as public officials. The purpose of this code is to establish guidelines for ethical standards of conduct to assist public officials in avoiding those acts or actions that are incompatible with the best interests of county government by directing disclosure of private interests in matters affecting the county.

The county board recognizes that the public officials of the county are drawn from society and, as such, cannot and should not be without all personal and economic interests in the decisions and policies of public government. It further recognizes that citizens who serve as county public officials retain their rights as citizens to interests of a personal and economic nature. The standards of ethical conduct for county public officials need to distinguish between those minor and inconsequential conflicts that are unavoidable in a free society and those conflicts that are substantial and material. Public officials may engage in employment, professional, business or investment activities, other than official duties, in order to support themselves or their families, provided they do not conflict with the provisions of this code.

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It is intended that this code shall apply to all persons whose functions require the exercise of discretion and judgment. Nothing contained herein is intended to deny to any individual, rights granted by the United States Constitution, the Wisconsin Constitution, and the laws of Wisconsin or by labor agreements negotiated with bargaining representatives. This code will in no way contravene the authority vested in the elected constitutional officers of the county under their respective state statutes. Amendments to this article enacted March 25, 2008, are to apply prospectively.

This writing is to file a Verified Complaint against District 3 Racine County Supervisor Monte Osterman, in accordance with Racine County Ordinance: Sec. 2-429. Complaints. (a) Procedure. The ethics board shall act upon the alleged violations of this article according to the following procedures and any others that the board may adopt: (2) Filing. The ethics board shall accept from any identified person a verified complaint in writing that states the name of the public official alleged to have committed a violation of this code of ethics and that shall set forth the specifics thereof.

(4) Board action. The board shall, within ten (10) days of the filing of a complaint under subsection (a)(2) of this section, forward a copy of the complaint to the accused public official and the corporation counsel. a. If the board determines that the verified complaint does not allege facts sufficient to constitute a violation of the code of ethics, it shall dismiss the complaint and notify the complainant and the accused. If the board determines that the verified complaint was frivolous, the board shall so state. b. If the board determines that the verified complaint alleges facts that provide a reasonable basis to constitute a violation of the code of ethics or that an investigation of a possible violation is warranted, it may make an investigation with respect to any alleged violation after notifying the accused public official in writing. Such notice shall state the nature and purpose of the investigation and the actions or activities to be investigated and the public official's due process rights.

Here comes the Complainant, Timothy S. Elmer, with a Verified Complaint; requesting that an investigation in accordance with Racine County Ordinance 2-430, be conducted into the allegations and evidence presented against District 3 Racine County Supervisor Monte Osterman; to determine if they are sufficient to establish probable cause to charge District 3 Racine County Supervisor Monte Osterman with violations of the Racine County Code of Ethics, and/or referral to the Racine County District Attorney’s Office for criminal charges.

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Sec. 2-430. Investigations Pursuant to any investigation or hearing conducted under this article, the board has the authority to: (1) Require any person to submit in writing such reports and answers to questions relevant to the proceedings conducted under this article as the board may prescribe, such submission to be made within such period and under oath or otherwise as the board may determine.

(2) Administer oaths and to require by subpoena issued by it the attendance and testimony of witnesses and the production of any documentary evidence relating to the investigation or hearing being conducted. Issuance of a subpoena requires action by the board in accordance with section 2-428(c).

(3) Order testimony to be taken by deposition before any individual who is designated by the board and has the power to administer oaths, and, in such instances, to compel testimony and the production of evidence in the same manner as authorized by subsection (2) above.

(4) Pay witnesses the same fees and mileage as are paid in like circumstances by the courts of this state.

(5) Request and obtain from the department of revenue copies of state income tax returns and access to other appropriate information under W.S.A., ยง 71.78(4), regarding all persons who are the subject of such investigation.

(6) Retain outside counsel and other experts as needed after solicitation of recommendations from the office of corporation counsel and upon such contract for services approved for content and form by the corporation counsel.

Complaint Count 1: Monte Osterman did not disclose on his Economic Interest Statement (Exhibit 1) that he is the Registered Agent for the non-stock corporation, Root River Council, INC. (Exhibit 2), in violation of Racine County Ordinance 2-426 (a) (1): Sec. 2-426. Economic interest statement. (a) Form and content. Every statement of economic interest form required to be filed under this Code may be obtained from the county clerk, shall be in the form prescribed at the end of this article and shall contain the following information applicable as of the 15th day of the month preceding the month in which the statement is filed: 201417203

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(1) Business ownership. The identity of every business organization with which the official or his immediate family is associated and the nature of his association.

Count 2: Because Monte Osterman failed to disclose on his Economic Interest Statement (Exhibit 1) that he is the Registered Agent for the non-stock corporation, Root River Council INC., which receives funding from the Wisconsin Coastal Management Program and the National Oceanic and Atmospheric Administration, Office of Ocean and Coastal Resource Management under the Coastal Zone Management Act, Grant # NA12NOS4190091 (Exhibit 3), solicits for donations on the Root River Council INC. website (Exhibit 4), and solicited for donations as a non-profit in a Aug 12, 2013 WISN article 10 Ways to Volunteer for Clean Water (Exhibit 5, item #10), the Ethics Board will need to conduct an investigation in accordance with Racine County Ordinance 2-430 (5) and obtain from the department of revenue copies of state income tax returns and access to other appropriate information under W.S.A., ยง 71.78(4), to determine whether Monte Osterman receives any non-disclosed reportable income from Root River Council, INC., and violated Racine County Ordinance 2-426 (a) (5): Sec. 2-426. Economic interest statement. (a) Form and content. Every statement of economic interest form required to be filed under this Code may be obtained from the county clerk, shall be in the form prescribed at the end of this article and shall contain the following information applicable as of the 15th day of the month preceding the month in which the statement is filed: (5) Income. The identity of each source from which the official or his immediate family received one thousand dollars ($1,000.00) or more of his income for the preceding taxable year. If the official who is required to file or a member of his or her immediate family received one thousand dollars ($1,000.00) or more of his/her income for the preceding taxable year from any business entity formed under W.S.A., ch. 180 that they have a ten (10) percent or greater interest or from a sole proprietorship that was reported on that year's income tax return, the official need only identify the general nature of said business. In addition, no identification need be made of payers from which dividends or interest is received.

Counts 3, 4 and 5: Monte Osterman, as a public official, failed in his duty to publicly disclose that he was a tenant of 1251 Mound Avenue, who is thus eligible for a maximum of $25,000 in relocation costs (Exhibit 4); while lobbying for the purchase of the property as a Registered Agent (Exhibit 2) and Board Member of Root River Council, INC., (Exhibit 7); and in his March 4, 2014 speech in favor of Root Works (Exhibit 8) before the Racine Common Council, he failed to disclose his economic interests as Registered Agent of Root River Council INC. and his status as tenant of 1251 Mound Avenue; 201417203

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Monte Osterman worked for the John Dickert Mayoral election campaign while his wife, Mary Jerger, was the Treasurer, and is also a member of the Racine Cable Commission (Exhibit 9); Monte Osterman and Marty Defatte are both longtime Root River Council INC., Board Members (Exhibit 7) and had detailed foreknowledge of the RootWorks plans going back to 2006 (Exhibit 8). Plans for the Mound Avenue Bluff Purchase were presented by the Root River Council to the Racine Common Council for a public hearing and adoption on June 19, 2012 (Exhibit 10 and 11). Racine Mayor John Dickert applied for the Knowles-Nelson Stewardship Grant on May 1, 2013 (Exhibit 12), while City of Racine Assistant Director of City Development Matt Sadowski received a letter from the DNR on September 18, 2013 advising him that he had been awarded the Knowles-Nelson Stewardship Grant (Exhibit 13).

On April 3, 2014, The Journal Times ran an article, City council members’ question RootWorks grant, project (Exhibit 14); in which City of Racine Alderman Eddie Diehl is quoted as saying: “He also has raised concerns about connections two members of the Root River Council — Monte Osterman and Marty Defatte — have to one of the buildings the city plans to purchase through the grant: an industrial warehouse at 1251 Mound Ave. Osterman’s business, Osterman Granite & Marble, leases space in the building. Defatte, a real estate agent for Shorewest, is listed as a real estate agent on the property.

Diehl has said he is troubled that both men might unfairly benefit from the city’s acquisition of the property. He said Osterman, the only tenant at 1251 Mound Ave., might unfairly benefit from the estimated $25,000 the city could end up paying the property owner or tenant to relocate.

As for Defatte, Diehl pointed out that the real estate agent could have known ahead of time that the property was going to be purchased by the city and stands to receive a commission when the property is sold.”

In addition, during the April 2, 2014 Racine Common Council Meeting, many Aldermen voiced their concerns with the lack of transparency surrounding the process of applying for and receiving the Knowles-Nelson Stewardship grant; the violation of City of Racine Ordinances 2-332 (4) (Exhibit 19) and 46-268 (Exhibit 20) by the Redevelopment Authority of Racine, the failure by previous Committees to accurately figure costs along with the large set of unknowns; and the concern of financially struggling Residents who are having their streetlights shut off and services reduced while the City continues to increase taxes, fees , and yet, proposes building more bike trails (Exhibit 15).

Alderman Sandy Weidner: “On the motion to refer to Committee. There are a couple of reasons why I think it is appropriate to send it back to Committee for a discussion by the full body. There are two issues that I think are important enough to be discussed at length. One is the logistics of this grant and the process in which, um, the City used to apply for it. Um. This never came to 201417203

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Council. There was money spent out of the Intergovernmental fund to pay for the appraisals.

That money was never approved by the Council. And if we have one function, it’s, we control the purse strings. If we sit back and allow staff to spend money out of the IG fund, or apply for grants without our approval we’re heading on a slippery slope. The other thing, the full Council needs to be aware exactly what it is we are doing with that grant. I think the Knowles-Nelson grant would be a very important thing for the property that is already owned by The City of Racine. Part of what that grant is going to do once it tears down privately owned property is going to put in new lights, new benches, new garbage cans, along with what amounts to half a block strip along Mound Avenue. I get calls to this day from people in my neighborhoods that have lost their streetlights. Yet we can afford to take this grant money and money out of the IG fund to put into the equivalent of a half a block of bike trail. If you look at the plan itself it says you’re going to get the rural and the urban feel. They’re going to tear down five properties. We have no idea what the demolition costs are going to be. That’s never been discussed. Ever. We have no idea what the total cost of this project was going to be. Um. I understand that we’ll be losing $12,000 a year worth of property tax. To some people it’s not a big thing. To the people that I represent that are struggling to pay their property taxes right now it is a big thing. So it’s things that we need to be cognizant of when we move forward with this. The Staff has done a very poor job defining what the problem is along that River. Very good at proposing what the solution is. But I never, as much as I ride that bike trail. I ride it on a weekly basis. I have…”

Mayor John Dickert: (talking in background, interrupts) “Let’s wrap it up and try to keep it on point. Alderman Weidner.”

Alderman Sandy Weidner: “I don’t think that my discussion is any different than the speakers before me. But if you’d like me to save my comments to speaking to the motion, we can vote up or down sending it to the Committee of the Whole. Once that’s done I’ll speak all over again and finish my comments when we vote on the item. One way or the other.”

All of the narrative and exhibits presented above is prima facie evidence that Monte Osterman willfully and wantonly concealed his economic interests in the Mound Avenue West Bluff purchase, conspired with other Root River Council INC. members for economic gain, and used his position to lobby for the Mound Avenue West Bluff project without fully disclosing his interests while deliberately misleading others to believe that The Root River Council INC. was a Non-Profit Organization, in violation of Racine County Ordinances 2-423 (b), 2-423 (f) and 2-423 (g).

Sec. 2-423. Standards of conduct and specific conflicts of interest (b) Economic and personal gain. No public official shall engage in any business or transaction or shall act in regard to economic or personal interest, direct or indirect, in a manner that is incompatible with the proper discharge of his or her official duties or that would tend to impair his or her independence of judgment or action in the performance of his or her official duties.

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This section is not intended to interfere with public officials having duties or employment in addition to those related to the county, provided those duties or employment do not cause violations of this code of ethics and are disclosed in the annual statement of economic interest. (f) Use and disclosure of confidential information. No public official shall knowingly use confidential information for actual or anticipated personal gain or for the actual or anticipated gain of any other person. Nor shall a public official, without proper legal authorization, disclose confidential information gathered in the course of public employment to an unauthorized person. (g) Unfair persuasion. No public official may use or attempt to use his or her public position to influence or gain unlawful benefits, advantages, or privileges for himself or herself or others.

Count 6: The Root River Council INC. is NOT a 501-C-3 Tax Exempt organization, nor does it file an IRS Form 990, which is required for Non-Profit Organizations; NOR it is listed amongst the 243 organizations recognized by the IRS as Racine Non-Profits (Exhibit 16); Yet it has repeatedly claimed the legal determination of Non-Profit status and even solicited donations while claiming to be a Non-Profit Organization. See Exhibit 17: Root River Council Facebook Page; Exhibit 5: In a August 12, 2013 WISN 12 article, 10 Ways to Volunteer for Clean Water, donations to the “non-profit water protection organization”, (the) Root River Council is suggested as a way to protect our precious waters; Exhibit 18: Ben Lehner, Executive Director, Root River Council, while participating in the SOI Region 2025 Industry Opportunities, on March 7, 2014, claimed “The Root River Council (is) a non-profit focused on redeveloping Racine's Root River.” ; Exhibit 21: Shows that in a Google search for the Root River Council, deception by association is used to instill the thought that the Root River Council is a Non-Profit Organization by presenting the false claim that the Root River Council, Racine, WI. is a Non-Profit Organization on their Facebook page, which on an internet search comes up only a few entries below the Root River Council website page. The IRS, as indicated by Exhibit 16, does not support the claim of the Root River Council, or the Root River Council INC., of being a Non-Profit Organization, or being able to claim Non-Profit status, in violation of: Wisconsin Statute 943.39 Fraudulent writings. Whoever, with intent to injure or defraud, does any of the following is guilty of a Class H felony: (1) Being a director, officer, manager, agent or employee of any corporation or limited liability company falsifies any record, account or other document belonging to that corporation or limited liability company by alteration, false entry or omission, or makes, circulates or publishes any written statement regarding the corporation or limited liability company which he or she knows is false;

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If the investigation confirms that the evidence presented by Complainant Timothy S. Elmer alleging Fraudulent Writings being made by Monte Osterman as the Registered Agent of the Root River Council, INC., in claiming Non-Profit Status, soliciting donations while claiming Non-Profit Status, and in using deceptive and false advertising/claims on website searches and pages, is sufficient to warrant criminal charges; then this evidence, findings of fact, and the conclusions of law be forwarded to the Racine County District Attorney’s Office in accordance with Racine County Ordinance Sec. 2-432 (b) (8): (as quoted below) Sec. 2-432. Findings of fact and conclusions of law; orders and recommendations; penalties. (b) If after investigation and hearing, the ethics board determines that a violation of this chapter has occurred, its findings of fact and conclusion may contain one (1) or more of the following orders or recommendations: (8) Miscellaneous. Any other recommendations or orders as may be necessary and appropriate to carry out the intent and purpose of this article.

And the Complainant requests that the Racine County District Attorney’s Office issues criminal charges and prosecutes all who are found to be in violation of Wisconsin Statute 943.39 (1) Fraudulent writings.

Count 7: Monte Osterman, as a Racine County Supervisor, failed in his known duty under Racine County Ordinance Sec. 2-434. Standards of conduct statement, to abide by the Racine County Code of Ethics and be fully transparent in his dealings with the Public, Members of the Root River Council INC, and other Government Officials. Instead he chose to willfully and wantonly violate multiple Ordinances; conceal his economic interests in the Mound Avenue West Bluff property; and misrepresent the true status of, and his position as the Registered Agent of the Root River Council INC., while receiving grant money, soliciting donations and lobbying for Root Works.

If the investigation confirms that the evidence presented by Complainant Timothy S. Elmer alleging multiple willful and wanton violations of the Racine County Ethics Ordinances is sufficient, then the Complainant requests that the Board of Ethics forward the evidence, findings of fact, and the conclusion of law, to the Racine County District Attorney’s Office, in accordance with Racine County Ordinance Sec. 2-432 (b) (8): (as quoted below) Sec. 2-432. Findings of fact and conclusions of law; orders and recommendations; penalties. (b) If after investigation and hearing, the ethics board determines that a violation of this chapter has occurred, its findings of fact and conclusion may contain one (1) or more of the following orders or recommendations:

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(8) Miscellaneous. Any other recommendations or orders as may be necessary and appropriate to carry out the intent and purpose of this article.

And the Complainant requests that the Racine County District Attorney’s Office issues criminal charges and prosecutes Monte Osterman for Misconduct in Public Office, Wisconsin Statute 946.12; and any other charges that are warranted and considered appropriate.

Wisconsin Statute 946.12 Misconduct in public office. Any public officer or public employee who does any of the following is guilty of a Class I felony: (1) Intentionally fails or refuses to perform a known mandatory, nondiscretionary, ministerial duty of the officer's or employee's office or employment within the time or in the manner required by law;

Complainant: Timothy S. Elmer 3001 Douglas Avenue Racine, WI 53402 racineequalityprojeect@yahoo.com I, the complainant, declare under oath that the information is true to the best of my knowledge.

Dated this ___day of ____________, 2014 Complainant: ________________________ Signature State of Wisconsin Racine County Subscribed and sworn to before me by ______________________on this ____day of _______, 2014. _________________________ Notary Public Commission Expires: ___________________

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List of Exhibits Exhibit 1: Monte Osterman Statement of Economic Interests Exhibit 2: Root River Council INC. Corporate Records Exhibit 3: Root River Council INC. Website Funding Statement Exhibit 4: Root River Council INC. Website Donations Button Exhibit 5: WISN 12 article, August 12, 2013 Exhibit 6: Knowles-Nelson Stewardship Grant Statistics Exhibit 7: Root River Council INC. Website Board Members list Exhibit 8: DVD Monte Osterman speaks before the Racine Common Council 03/04/14 Exhibit 9: Mary Jerger – John Dickert for Mayor Campaign Treasurer, Cable Commissioner Exhibit 10: The Journal Times, article, June 01, 2012 Exhibit 11: City of Racine Common Council Meeting Minutes, June 19, 2012 Exhibit 12: Mayor John Dickert letter, May 1, 2013 Exhibit 13: DNR letter to Matt Sadowski, September 18, 2013 Exhibit 14: The Journal Times, article, April 3, 2014 Exhibit 15: DVD April 2, 2014 Racine Common Council Meeting Root Works discussion Exhibit 16: IRS list of Racine Non-Profit Organizations Exhibit 17: Root River Council, Facebook page Exhibit 18: Statement of Ben Lehner, SOI Region 2025 Industry Opportunities Conference Exhibit 19: City of Racine Ordinance 2-332 Exhibit 20: City of Racine Ordinance 46-268 Exhibit 21: Results of a Root River Council Google search

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