Des Plaines sticks with lobbyist despite past scandal

Des Plaines city officials say they knew nothing of a past scandal involving lobbyist Alfred G. Ronan, whom the city hired in January to represent its interests in Springfield, specifically to fight against a last-minute move to expand gambling.

Des Plaines leaders opposed the bill in a lame-duck session of the General Assembly that would have allowed five additional casino licenses in the state and slots at racetracks, fearing it would lessen potential revenues from a $450 million casino complex scheduled to open in the city this summer.

Ronan's firm was able to work some concessions for Des Plaines into that legislation, which eventually died without a floor vote.

Ronan's previous high-powered lobbying firm was implicated in a bid-rigging scheme and pleaded guilty to mail fraud in September 2004, though neither Ronan nor his then-partner, John Potts, was convicted of or admitted to any personal wrongdoing.

Their firm, Ronan Potts LLC, admitted it solicited inside information from Metropolitan Pier and Exhibition Authority Chief Scott Fawell and his assistant, Andrea Coutretsis, to help client Jacobs Facilities Inc. of St. Louis win a bid for overseeing the construction of McCormick Place West.

Jacobs had the second-lowest bid of eight companies at $18.8 million when Coutretsis told Julie Starsiak, a Ronan-Potts vice president, that the lowest company's bid was $12.2 million. That allowed Jacobs to undercut the other company in a final round of bidding by going down to $11.5 million.

Ronan denied that he had any knowledge of the passage of inside information. His firm suffered a loss in business as a result of the scandal, was fined $465,000 by the federal government, and was forced to disband.

“I want to set the record straight,” Ronan said Friday.

Ronan said Starsiak, who was a longtime employee but had no ownership stake, acted independently and ultimately pleaded guilty to two counts of perjury, a federal crime.

“She had done the deal herself. It had nothing to do with myself or my partner,” Ronan said. “We were held accountable for her actions. The reason we were indicted was that the federal government said that we should have managed her activities better. We disbanded after the incident only because our reputation had been tarnished.”

Ronan said the scandal didn't damage his reputation as “the people who knew me and who I had worked with understood exactly what had happened. We just took our lumps and settled the case, and we moved on,” he said.

Potts and Ronan each set up independent lobbying firms that are thriving, Ronan said.

While Ronan's previous firm had 10 employees, today he works alone.

“I have contractual relationships with other firms because I am never going to put myself in a position where an employee can destroy my business,” Ronan said.

Ronan has more than 30 clients including cable TV, the Chicago Cubs, Motorola Inc., CBS Outdoor Inc., red-light camera vendor RedSpeed Illinois, a few community colleges, school and library districts, a group representing downstate strip clubs, and suburban towns including Hoffman Estates.

Hoffman Estates Mayor Bill McLeod said he was aware of the scandal involving Ronan's previous firm and believed it involved only another principal at the firm.

“We've had two (former) mayors of Hoffman Estates go to jail. Does that make me a criminal?” he asked rhetorically.

McLeod said Ronan's service as a former state legislator and contacts in Springfield make him an effective lobbyist.

Ronan served 14 years in the Illinois House, was a former assistant to Gov. Daniel Walker, former deputy director of the Illinois Department of Mental Health, and former assistant secretary of the Illinois Department of Transportation, both under Walker.

“I have known Ronan for very many years,” McLeod said. “He's one of the most intense individuals I have ever met. He has done a great job of networking, and that's why he's so effective. He knows practically everybody (from) both parties. I've been delighted with the services of his firm.”

Ronan has been lobbying for Hoffman Estates for about 3½ years. McLeod said he helped secure grants for the village police department's new Emergency Operations Center, and a commitment from the Illinois Department of Transportation and Illinois Tollway Authority to fund the building of an $18 million full interchange at Barrington Road and Interstate 90 to replace the current half-interchange.

Des Plaines officials said they did not conduct a background check before hiring Alfred G. Ronan Ltd. and relied instead on his reputation in Springfield.

“We hired them because of their work ethic,” Des Plaines Mayor Marty Moylan said. “The racetrack people had 38 lobbyists on their team. We had to look (for) good, quality lobbyists that were still available to protect our interest, and they were one of the top firms that were available. Some lobbying firms try to phone in the job. These people actually have boots on the ground, which is what counts.”

Moylan added he wasn't aware of any scandals involving Ronan's previous firm.

The Des Plaines City Council recently approved extending Ronan's contract through the end of the year at a cost of $5,000 per month. The firm also may represent the city in other legislative matters.

City Manager Jason Slowinski said that though he wasn't aware of the specifics of the bidding scandal, it doesn't change the city's decision to hire him for the rest of the year.

“When we realized there was a possibility of additional legislation being proposed in this session, it seemed like a no-brainer for us to retain the firm that represented us so well in the last session,” he said.

Ronan's firm was being courted by groups interested in gambling expansion, Slowinski said. Now, city leaders expect Ronan's firm to continue to be a voice for Des Plaines at the table “with whatever legislation is being proposed.”