01282019 - News Article - Truck bidder says he thought Portage process didn't look right

Truck bidder says he thought Portage process didn't look right
Chicago Tribune
January 28, 2019
https://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-snyder-trial-day-eight-st-0128-story.html

A company that aimed to win a Portage contract for garbage trucks knew something was not right when no one from the city would look at the equipment he planned to offer.

The eighth day of Portage Mayor James Snyder’s trial, federal prosecutors continued showing how the bid process for garbage trucks was allegedly rigged for one firm and reportedly netted the mayor a $13,000 payout. Defense attorneys have said there was nothing questionable about the bid process and it was all done above board.

Greg Dadlow, of Pyramid Equipment, said ahead of the bids for the garbage trucks in 2013 he wanted to let someone from the city’s streets department test his equipment but they said they already knew what they wanted.

Dadlow’s company submitted four bids for the trucks, each with a Mack chassis and either a Wayne or Bridgeport body. Those four bids were among the lowest, Dadlow said, and one was roughly $60,000 less than the company that won the contract.

“Sometime you don’t believe that could just be overlooked,” Dadlow said.

Snyder’s defense says those bids did not meet the specifications, which called for a Peterbilt chassis, a McNeilus body, a Cummins engine and a 150-day delivery date.

Assistant U.S. Attorney Jill Koster asked why Dadlow submitted a bid if those items were specifically included in the specs.

Dadlow said he went through all the specs and in his proposal detailed how his equipment met the same requirements and even noted what differed between the machines.

Koster asked, as an example, if not having a McNeilus body automatically disqualified the Pyramid bid.

“No, it does not,” Dadlow said.

Dadlow said, in his experience, that municipalities will consider something besides the specs if the price is significantly different.

Prosecutors say that when Snyder first ran for mayor, he told residents he planned to automate Portage’s trash pickup, but wound up allegedly steering contracts for $712,882.50 and another for $425,355 to Great Lakes Peterbilt, which was then owned by Robert and Steve Buha.

Great Lakes Peterbilt is now owned by a different firm.

After getting those contracts, prosecutors said Great Lakes Peterbilt gave Snyder a check for $13,000 payable to his shell company, which state records showed had been dissolved.

Defense attorneys say that Snyder used his experience in offering health insurance to city employees through the Affordable Care Act, and making technology upgrades to advise Great Lakes Peterbilt about making similar changes.

It was the questionable bidding process that prompted Steve Charnetzky, Portage’s former streets superintendent, to raise the issue to the FBI.

On the witness stand, Charnetzky said he had heard that the mayor’s office and the assistant streets superintendent say the contract was going to Great Lakes Peterbilt

Defense attorney Jackie Bennett Jr. said that Charnetzky testified that he was not involved in the bidding process for the garbage trucks and had no knowledge of what was submitted.

“Your statement about something illegal and unlawful is simply your opinion,” Bennett said.

Snyder was indicted in November 2016 and charged with allegedly violating federal bribery statutes. Federal prosecutors say the mayor allegedly solicited money from John Cortina, of Kustom Auto Body, and “Individual A” and gave them a towing contract for Portage. Snyder received an additional bribery indictment for alleged accepting $13,000 in connection with a Board of Works contract.

A third charge alleges Snyder obstructed or impeded Internal Revenue Service laws.

Snyder has pleaded not guilty to the charges, according to court documents.

Cortina, who was indicted alongside the mayor, pleaded guilty to a charge that he paid bribes to Snyder to get a spot on the tow list. Cortina is expected to cooperate with federal investigators against Snyder, according to court documents.