Taylor's ROC Foundation Posts -$24,000 Loss

 Franklin Community News

Taylor's ROC Foundation Posts -$24,000 Loss

The ROC Foundation a non for profit 501(c)(3) under the leadership of Foundation Executive Director Steve Taylor, (also Milwaukee County Supervisor for the eastern half of Franklin and all of Oak Creek) posted a net operating loss of -24,664 for 2022 according to IRS Filings. The filing indicates Taylor earned $75,047 in salary and benefits. Franklin Community News (FCN) has been tracking the IRS reported filings for the last three years.

The ROC Foundation also posted a net loss of -$4,032 from its major fundraising events; Golf Outing, Jersey Auction, and an Unnamed event for the 2022. The golf tournament, its most widely publicized and promoted event raised $45,376 with direct expenses of $37,233 and rental facility costs of $8,144 leaving a net profit for the Golf Tournament of -$1.00. The Jersey Auction Grossed $59,057 and had expenses of $44,776 and listed other direct expenses of $14,281 with a net profit of $0.00. There was no revenue from these major fundraisers that contributed toward the stated mission of the ROC Foundation.

There were 33 registrants for the Golf Tournament according to their registration page.

Registration Details as listed on the Golf Tournament Web Page

Shotgun Start: 8:00am 

Lunch will be served following the tournament at: Leinenkugel's Hop Yard
Milkmen Stadium 7035 S. Ballpark Drive Franklin, WI

Net Proceeds Benefit ROC Foundation and Milwaukee Milkmen Camps and Tickets for Disadvantaged Children.

There is no indication in the last three years of IRS returns that were reviewed, that the Foundation has incurred any expense for Milwaukee Milkmen Camps.  It is possible that the Foundation working with ROC Ventures may have comped tickets that were not listed as an expense on the return for Disadvantaged Children.

The Golf Tournament on the ROC Foundation Web Page indicates for the 2023 Golf Tournament:

Please join us on August 18, 2023, for the 4th Annual ROC Foundation Golf Tournament presented by The Boldt Company! Shotgun start will begin at 8:00 AM and is located at Whitnall Golf Course in Franklin, WI. We also invite you to join us for lunch at the Leinenkugel’s Hop Yard in Franklin Field following golf.

This is a fantastic opportunity to hit the links and give back to the community, so don’t miss out! For further information, please contact Steve Taylor at stevet@rocventures.org

Major donors who contributed to the Golf Tournament were listed as:

According to past IRS filings the 2021 Golf Tournament made a net profit of $3,057 and in 2020 a net profit of $7,881.  

The ROC Foundation Web Page identifies the mission of the Foundation as;

"The ROC Foundation's mission is to provide support and unique experiences for youth, high school, and young adults in sports, recreation, education, employment and wellness; through a robust network of like-minded businesses and supporters.  The ROC Foundation thrives to create impactful outcomes in the communities where we live, work, and play."

The last IRS filing for 2022 indicates that the ROC Foundation contributed $38,006 to serve the mission of the organization.  Part III of the submitted form 990-EZ is the "Statement of Program Accomplishments".  Based on the organizations primary purpose the organization is asked to respond to the following question; 

"Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. In a clear and concise manner, describe the services provided, the number of persons benefited, and other relevant information for each program title."

The response provided on the 990-EZ line 28 is:

"ROC FOUNDATION ALLOWS OTHER NON-PROFITS TO PARTICIPATE IN MILWAUKEE WAVE AND MILWAUKEE MILKMEN IN-GAME FUNDRAISING EVENTS FOR THEIR RESPECTIVE ORGANIZATIONS. THESE INCLUDE BUT ARE NOT LIMITED TO: GAMES, RAFFLES, PR, ETC." (Grants $38,000)

It appears based on the response provided on the IRS filing, that the ROC Foundation does not provide "Grants" in the literal meaning of "Grants".  It appears that other Non-profits can "earn" money by selling Milkmen and Wave tickets and conducting In-Game Fundraisers such as 50/50 and other raffles.  No "Grant" is awarded directly to a non-profit unless it is "earned" by selling tickets or an in game fundraising event according to their response.  

The ROC Community Partnership Program is the program where local non-profits can "Earn" money by selling Milkmen or Wave Tickets, provide volunteers to work portable concessions, and "raise" money by running a ball toss game and 50/50 raffle.

Interesting to note on this years submission is "Professional Fees and Independent Contractors Expense" of  $32,786.  Last year the Foundation reported $40,000 for this same expense.  The  $38,006 in "Grants" which meets its stated mission, has no impact on its operating expense because "grants" are generated by "in-game raffles".  The expense for "Contracted Services" is not associated with fundraising expenses and might appear excessive.  One might question what these expenses are for and to who they are to and how the expenses support the mission of the Foundation.

The Foundation in 2022 posted its biggest net loss in the last three years of -$24,664, 2021 net loss of -$23,139, and 2020 a net loss of -$3,679.  Other than run a golf tournament, a jersey auction, and allow groups to sell tickets and raise funds at "in-game fundraisers", it is unclear what is it that the Foundation actually does to have a yearly expense of $110,258 not including the expense of "grants" or "in game fundraisers".

The latest IRS filing lists Steve Taylor as the Executive Director, Joe Zimmerman, President, Jessica Kaye, Secretary, and Matt King, Treasurer.

Joe Zimmerman is listed as Senior Vice President of ROC Ventures on the ROC Ventures web page. Jessica Kaye is identified on her Linked In page as working as a Paralegal and Finance at Quarles and Brady and currently serving as the Co-Chair for the Franklin Educational Foundation and Southwood Glen Elementary School PTA Treasurer.  Matt King is identified on his Linked In page as the Associate Director of the Hunger Task Force.

Analysis/Opinion

One would question, based on the level of activity reported in the IRS filings, what it is the Foundation Executive Directors does as it is related to the mission stated by the ROC Foundation?  This, in addition to continually having a yearly operational deficit for the foundation (the last three years) and running a major golf tournament that spends more than it makes for the “foundation charity”.  What could warrant a $75,000 position with so little of a return on the IRS tax filings?  Why would the Foundation need to spend $32,000 this past year and $40,000 the year before on "Professional Fess and Independent Contractors"?

Franklin Community News and Franklin Residents Concerned with Sound at Ballpark Commons, have submitted a formal Tax-Exempt Organization Complaint (Form 13909) against ROC Foundation, Inc. The ROC Foundation is the charitable arm, a not for profit 501(c)(3) of ROC Ventures. We have received confirmation of the complaint.

The complaint to the IRS Exempt Organization Classification Unit alleges:

• Directors/Officers/Persons are using income/assets for personal gain
• Organization is engaged in commercial, for-profit business activity
• Organization is involved in political campaign
• Organization is engaged in excessive lobbying activity

The complaint is based on over 3000 pages of open records received from the City of Franklin of any email or correspondence to or from “Steve Taylor” or “Steven F Taylor” or “Steven Taylor” and any email or correspondence containing “Steve Taylor” or “Steven F Taylor” or “Steven Taylor” from July 1, 2020 thru August 22, 2023 as well as other public information and documents.  The time frame requested is the time the ROC Foundation was incorporated to the present.  

Based on the over 3000 public records from the city of Franklin, text messages, and IRS filings for 2020 and 2021, the following allegations are identified to the IRS in the formal Tax-Exempt Organization Complaint:

• ROC Foundation activity related to its stated mission is very minimal.

• The ROC Foundation was set up as a cover business for Steve Taylor to lobby the City of Franklin and to avoid a conflict of interest with his position as Milwaukee County Supervisor. It also serves as the "Trojan Horse" charitable arm for Mike Zimmerman.

• Mr. Taylor was rewarded with the position and employment as Executive Director in December 2019 as a reward from Mike Zimmerman, CEO Rock Ventures, for shepherding thru the sale and rezoning of Crystal Ridge to Ballpark Commons as County Supervisor and when he served as Alderman and Common Council President in Franklin.

• The ROC Foundation is paying for Mr. Taylor’s salary and benefits while the majority of his time is focused on ROC Venture Operations and Government Relations, not the stated charitable mission statement.  The majority of the emails to/from the city of Franklin from ROC Executive Director Steve Taylor are similar in nature to the sample linked here.

• There is a definite conflict of interest between Mr. Taylor and his work, representation, and influence as ROC Foundation, Inc. Executive Director; Steve Taylor, ROC Ventures; Steve Taylor, Milwaukee County Supervisor; Steve Taylor, Campaign Chair to elect John Nelson; Steve Taylor, Steve Taylor Consulting 
  
  LLC; Steve Taylor, Ex-Officio Board member, Engage Franklin.

• Mr. Taylor was the Chair of the Campaign to elect John Nelson and was very heavily involved in running the campaign, very active on social media promoting candidate Nelson, and involved in the community in fundraising events, meetings and activities to elect candidate Nelson.  There is a definite conflict of interest as Mr. Taylor is a part-time Milwaukee County Supervisor and a Full Time employee as ROC Foundation Executive Director and his efforts to place a “ROC friendly” mayor in Franklin. 

• Based on the over 3000 public records obtained from the City of Franklin over the last three years identify that the majority of the correspondence to and from the City of Franklin had to do with ROC Ventures Operations and Government Relations and very minimal having to do with ROC Foundation, Inc. View the over 3000 Taylor emails to and from the city of Franklin linked here.

 

 

 

Alderperson Eichmann Interferes with City Bid Process for her Employer

 Franklin Community News

Alderperson Eichmann Interferes with City Bid Process for her Employer

Franklin Community News (FCN) was made aware that Franklin Alderperson Michelle Eichmann who represents the 2nd Aldermanic District, was interfering with a city quote process in an effort to have a bid for carpeting awarded to her employer. Eichmann's Linked In page identifies that she is a full-time Interior Designer and Outside Sales Consultant for Stu's Flooring since February of 2020.

Open records requested by FCN were:

• That the City of Franklin provided soliciting bids for flooring in city hall that was completed this year in addition to:

• The Request for Proposal requesting flooring bids

• All bids received by the city for the flooring project

• Any emails the city has pertaining to the bid request, responses, or any communication pertaining to replacing the flooring or awarding the bid

• If a document existed on how the bids were scored and any documentation on who the bid was awarded to

FCN made the open records request to the City of Franklin on December 20, 2023.

Access to all of the records received from the open records request can be accessed here.

A review of the records indicates that the City Health Department received a Community Development Block Grant in early 2023, specifically awarding funds to cover the cost of the carpeting project for the Health Wing at Franklin City Hall. Records also show that city staff reached out to the Greendale Health Department who recently were awarded a block grant to update the Greendale Health Department.

At the end of February staff requested quotes from Adiar Floors 'N' Mor ($4,772) and Stu's Flooring ($4988.98). On July 11, 2023 Lauren Gottleib, Director of Health and Human Services sent an email to Kelly Hersh, Director of Administration indicating two quotes were obtained. The open records request did not provide any responsive records indicating Hersh provided a written response. Gottleib indicated she has no preference in vendors and is recommending Adair which came in slightly lower in cost. On July 24, 2023 Adair updated their quote to ($5496) as they were specifically quoting on Mohawk Carpet Tile #989 based on request from staff. Stu's provided an updated quote of ($6017.75) on August 1, 2023 to now include a Patcraft color 910 Somersault or Mohawk Commercial Carpet.

On August 2, 2023 Gottleib indicates to Bob Tesch, Buildings Maintenance Superintendent to move forward with Adair based on their price. August 9, 2023 Gottleib sends an email to Karen Kastenson, Former City Clerk indicating that Council Action is needed at the next Council Meeting, August 9, 2023 (Item G4) to approve carpeting purchase since it is over the $5000 limit to purchase without council action.

On August 14, 2023 the day before the August 15, 2023 Common Council meeting, Tesch receives an unsolicited alternate quote from Stu's Flooring General Manager Justin Hurd for ($4937.33). Stu's quote now includes the exact same carpet specification that was quoted by Adiar's (Mohawk Breaking news color 989 total access). Stu's quoted the exact same carpet specifications as Adair's, but also underquoted Adair's revised bid of ($5496) by $558.67.

The morning of the August 15, 2023 Common Council meeting, Tesch sent the following email to Hersh:

"Kelly, I have some concern about item G3 carpeting in Health wing, which is on tonight’s Council agenda. When getting quotes for this work, each vendor was given the same parameters for scope of work, and desired level of quality for the materials used. I did this because all vendors do not use the same manufactures products, so I did not want exclude a vendor just because

they used a supplier that is different from their competitor. Yesterday our Health Director received a call from Alderwomen Eichmann about this project, so the Director asked me to join the discussion. (Important side note) One of the vendors that bid on the project was Stu’s Flooring, which happens to be the alderwomen’s employer, (which I was unaware of.) While the alderwomen is not directly associated with the carpeting division of Stu’s, so we do not have a direct conflict of interest, she is an employee."

 

"The alderwomen had the carpet rep at Stu’s produce an alternate bid, which I also have concern with, as it is very last minute and was not an option afforded to Adair Flooring. While that quote came in less than the vendor who the Health Director and I recommended in item G3, I do have concerns. When talking to the alderwomen, she of course was aware of details that other competing vendors would not be aware of, down to the carpet color and design quoted by another vendor/competitor. As the new quote from Stu’s now quotes the exact carpet down to the style number and name, clearly some info from a competitors quote was shared, again to me this is a concern."

 

"When talking to the Alderwomen yesterday, she was not 100% if she was going to bring this up in the discussions on this item, but I wanted to make you aware that I have some concerns how this is playing out. I of course will use whatever vendor I am instructed to use by you and the Council, but I am the person who will also have to call the vendor who we do not use, which may be difficult know that things had been happening behind the scenes. I know that I have used the word concerned in this e- mail many times, and I fell I did so for good reason. Thank you!"

The open records request did not provide any responsive records indicating Hersh provided a written response.

This item did appear on the August 15, 2023 Common Council agenda and Adair's Quote was voted upon and approved by the Council. Minutes of the meeting show all Alderperson's voting "Yes" and Alderperson Eichmann voting "Abstain".

Analysis/Opinion

1. Alderperson Eichmann overstepped her authority as an Alderperson by inserting herself into a City purchasing process.
2. Alderperson Eichmann has a conflict of interest with her employment at Stu's Flooring and the awarding of a contract with the City of Franklin.
3. Alderperson Eichmann had no authority asking Stu's to submit an alternate quote which was not afforded to Adair's and not her purview.
4. Alderperson Eichmann provided an unfair advantage to her employer by providing the exact carpet specification to Stu's that was not part of the quote process and that no one would have known.
5. Alderperson Eichmann provided an unfair advantage to her employer by providing the amount that was quoted by Adair's, allowing her employer to submit a quote undercutting Adair's.
6. It was appropriate that Alderperson Eichmann abstained from voting, however the damage was done.
7. It is unfortunate that the City Director of Administration either did not provide a written response to two of the emails indicated, or choose to provide an oral response.
   
   
   

A review of the City of Franklin Ethics Code indicates the following Ethics Violations may have been violated by Alderperson Eichmann:

• Section 3 - The Common Council, upon recommendation from individual Council Members, professional staff, and volunteer Boards/Commissions/Committees, authorizes various aspects of personnel management including policies, pay plans, benefit plans and other related items. On Council direction, the Mayor is charged with implementing these items while working with the executive team. This provides for a single manager to direct our staff.
• Section 3 - Council Members shall not engage in directing employees in their tasks and/or injecting themselves into tasks and projects.
• Section 3(C) - Unless otherwise provided in this Code, neither the Council, nor any of Commission/Board /Committee Members, shall attempt to supersede the administration's powers and duties. Neither the Council nor any Commission/Board/Committee Member thereof shall give orders to any of the Department Heads or their subordinates, either publicly or privately. Council/Commission/Board/Committee Members shall not attempt to unethically influence or coerce City staff concerning either their actions or recommendations to awarding contracts, selection of consultants, processing of development proposals, the granting of City licenses and permits, or any other similar City function.
• Section 9 -  Using their office to obtain financial gain, any type of employment including consulting or similar roles, or anything of substantial value for the private benefit of themselves, their immediate families, or organizations with which they are associated.