Oak Park Newspaper

VOTE
Vision Community Action
Annabel Abraham
Jim Balanoff
Robert Milstein
Gary Schwab
Political Ad

April 16th, One Month After The First Story of this
Horrific Facade of Neglect.

This Property, Part of 1113 South Blvd in Oak Park Proudly Displays the Poster for His Chosen Party Where He Was Once President.
© Photo by Suburban Journals of Chicago Inc.

1111 to 1113 South Boulevard in Oak Park
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Gene Armstrong, the past president of the vma has vma slated
candidates on Citizen's Progressive Action party posters in his
the windows of his building. Does having posters for the vma
and giving them money for their political efforts allow you to
avoid code violations in Oak Park? The condition of the buildings shown in the video, the still shot above, and the series
below have been in their state of disrepair long before our first
story a month ago. We have not noted any progress on the repair, unlike some of the properties owned or operated by Fox and Associates. Is Mr. Armstrong laughing at the Village?

Mr. Armstrong's court proceedings and history below do not
appear to be too funny.

2005 State Press Release

MADIGAN TO ICC: REMEDIES BEFORE RATE HIKES
FOR OGLE COUNTY UTILITY COMPANY

COMPANY ALSO SUBJECT OF SEPARATE LITIGATION

Chicago – The office of Attorney General Lisa Madigan today announced that it has recommended to the Illinois Commerce Commission (ICC) that the agency reject a large rate increase request by a privately owned Ogle County water and sewer utility company.

In testimony filed on January 21 with the commission, Madigan’s office asked the ICC to deny New Landing Utility, Inc., its requested 244 percent rate increase. New Landing provides water service to about 309 families and sewer service to 156 families in Ogle County.

An analysis conducted by Madigan’s Public Utilities Bureau found that despite the fact that New Landing’s current rates have remained the same for more than 20 years, the revenues the company receives cover all out-of-pocket expenses, including the costs to operate the utility and to purchase supplies and materials. And while many times 20-year-old rates are not enough for a utility company to cover costs, in this case Madigan’s office found that a lack of ongoing investment combined with an increased customer base have allowed revenues to keep up with costs.

Current rates also provide New Landing with a small return on its plant. However, Madigan’s office recommended the utility not receive a larger profit due to technical, financial and managerial deficiencies, including the payment of thousands of dollars to the owner and his family over the past several years and the failure to obtain the required ICC approval of various transfers and agreements.

“Years of misconduct and mismanagement at the New Landing utility will not be remedied with a drastic price increase for its customers,” Madigan said.

The analysis by Madigan’s office found significant problems with the operation of New Landing. For example, the utility revealed that it has done no maintenance on its water or sewer plant and has failed to make any capital improvements for 20 years. As a result, the condition of the plant is substandard, and New Landing has not presented any plan to address the problems identified by the ICC.

In separate action, in February 2004, Madigan’s Environmental Bureau and then-Ogle County State’s Attorney Deborah Ellis filed suit demanding that New Landing immediately repair a leaking elevated water storage tank that, combined with sub-freezing temperatures, had allegedly created dangerous conditions and health hazards for residents of two Ogle County subdivisions served by the utility.

Further, on September 28, 2004, an Ogle County judge found New Landing and its owner Gene Armstrong liable for various violations of the state water and environmental requirements and, with various deadlines, granted the defendants up to six months to meet Illinois Environmental Protection Agency (IEPA) demands to bring the public water supply into compliance. On December 16, 2004, an Ogle County judge found the defendants in contempt of court for failing to comply with its September order. New Landing claims that it lacks the money or access to capital to remedy the problems that have developed.

The September court order stemmed from a 15-count complaint filed in 2001 by the Attorney General’s office against New Landing and Armstrong, individually and as New Landing’s president. The complaint alleged violations dating back to the early 1990s and related to the water service provided to residents of the New Landing and Lost Nation subdivisions near Dixon.

Madigan’s office has indicated to the ICC that new management should be brought in to operate the utility and no rate increase should be granted under the current management. In addition, Madigan’s Environmental Bureau is asking that a receiver be appointed to run the utility to help remedy the environmental and financial problems.

Senior Assistant Attorney General Susan Satter is handling the case for Madigan’s Public Utilities Bureau and Assistant Attorneys General Mitchell Cohen and Christopher Perzan are handling the case for Madigan’s Environmental Bureau.

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UPDATE
http://www.lostnation.info

"Presuming the sale goes through, we anticipate at this point that we would dismiss the EPA’s lawsuits and EPA would work with the District to bring the utility into compliance. The District and Armstrong are still finalizing the documents for the sale so obviously things are not final yet. A further status hearing was set for 4/5/07 at 3:00 p.m. with telephone participation allowed."

When the Board was contacted, there was no answer to our
question if Mr. Armstrong had completed the sale...

Lost Lake Utility District Meeting
404 Lake Court, Dixon, Illinois

"Gene Armstrong provided Summary Report No.3 (Reports 1 and 2 were not received). He owes 14 people $500 or more. They have agreed to accept 75 percent of what is owed at closing. One creditor refused to accept less than what i s owed. Venders and Suppliers who are owed $500 or less have agreed
to accept 75 percent of what is owed. Planitiffs' claim: They agreed to compromise. It will be determined at the settlement conference at the next status hearing March 16, 2007. Gene Armstrong asked and agreed to take less money. The January 12, 2006 contempt sanctions: defendent proposes that the sanctions be waived. This could be part of the settlement conference. Mr. Armstrong was asked to agree, and has
indicated that he does agreee to compromise the total of his
claims for amounts that he owes in legal fees to Attorney Clay
Lindsey of Williams McCarthy. He owes $150,803 which the agreed amount in now $103,713 to the 14 creditors. He has outlined the Attorney General's office, the IEPA, and per diem settlements in the amount of $213, 304, comtempt sanctions of $60,000. That is to be discussed at the hearing. Total claims
are $622,307."

Photos of supplies, the kind needed to repair the eyesores in Oak Park.