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| (IN) 7/08 - Johnson: Replacements sou... |
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Bev Harris
Board Administrator
Username: Admin
Post Number: 8707
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Wednesday, July 2, 2008 - 7:53 pm: | 
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(From BBV admin): I guess I wanted to grab this one before it got away. Did a quick check on the companies mentioned. Illinois-based ATM Diagnostics, in particular is an unacceptably vague and secretive company.
Indianapolis Star - July 2, 2008, By Jason Thomas
http://www.indystar.com/apps/pbcs.dll/article?AID=/20080702/LOCAL0403/807020472/ 1023/LOCAL04
Flood-damaged voting machines must be replaced
Johnson County election officials hope by Monday to choose a firm that will replace nearly 500 voting machines destroyed in the June 7 floods.
The election board will meet with the County Commissioners to discuss a plan that could involve leasing the 478 touch screen machines that will be used in the Nov. 4 general election.
Three companies on Tuesday presented proposals to the election board, but officials have asked for more information before they make a decision.
"There are just a lot of issues to consider," County Clerk Jill Jackson said.
The county purchased the machines from Omaha, Neb.-based Election Systems & Software for $2.4 million in 2002 but still owes $785,000 on bonds used to pay for the equipment. The cost to replace 478 machines and components totals more than $1.67 million.
Leasing could be an option.
ES&S' proposal totals $392,570 to lease the machines, but additional expenses, such as ballot layout, could increase that cost by $30,000. ES&S' figure is more than $57,000 more than it estimated in a meeting two weeks ago.
"I was not happy with that," Jackson said. "The other ones were considerably less."
Dalton Consulting, of South Bend, offered a price of $263,450, but that did not include expenses such as project management work or ballot layout.
Illinois-based ATM Diagnostics' proposal totaled about $1.6 million, but that was for seven elections. Each election would cost about $227,000.
The proposals had varying factors and provisions, which was another reason for needing more information.
"It's hard to do an equal comparison," Jackson said.
The machines were stored in the Oren Wright administrative building, which was swamped by 5 feet of water during the June 7 floods. The water displaced several departments and rendered the machines useless.
"I don't think it's going to be a problem getting the machines," Jackson said. "It's just working out all of the details. I'm very confident there are machines out there that are available." |
John Howard
Frequent Voting Rights Forum Participant
Username: Harmonyguy
Post Number: 615
Registered: 12-2004
Best of Black Box? 
Votes: 1 (A keeper?) | | Posted on Wednesday, July 2, 2008 - 10:07 pm: |
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Hmmm, the only Dalton Consulting listed in Indiana is an entity created on 01/23/2008:
Dalton Consulting LLC
51817 Saddleridge Lane South, Granger, IN 46530
Indiana Search
An Internet search on the address, produces a single, albeit unexpected, result.
Link to Address
ATM Diagnostics appears to also be a recent outfit, having only been established in early 2007.
The Address listed with the Illinois SoS is 130 W Lafayette, Ottawa IL. This location appears to be a commercial location with apparently at least four distinct units, judging by the fact that one business at the location identifies itself as being in unit D. There are two real-estate offices, along with one one business that is listed as:
Real Estate Inspection Services, Convention and Meeting Facilities, and Wholesale Medical/Hospital Equipment. (What a combination!)
The website for atmdiagnostics is, uhh, well, sparse. Atm Diagnostics
One thing that I didn't understand about these proposals was the need for additional funds for Ballot Programming. If they were renting/leasing units of the same type as those that were flooded, wouldn't the ballot programming be already budgeted for, and directly transferable?
If the units being rented/leased were of a different type, then I would understand that the ballot programming would need to be done differently, however then it wouldn't need to be done for the original flooded machines - the cost could be transferred to the new machines.
Or am I missing something??
HG;) |
Catherine Ansbro
Frequent Voting Rights Forum Participant
Username: Catherine_a
Post Number: 5109
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 1:54 am: |
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ATM Diagnostics could related to diagnostics on Diebold ATMs, which could then carry over to voting machines. Pure conjecture.
That website is a big red flag. Talk about a credibility extinguisher. . . |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8709
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 5:58 am: |
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The information on ATM Diagnostics is so sparse, even after a more in-depth look, that it's fair to conclude that the owner(s) is hiding his identity.
Thank you so much, John Howard, for showing that the address for Dalton Consulting is also listed as "Election Systems & Software" -- this would at least make sense because the county was using ES&S iVotronics before the flood. But -- as you point out, then why don't they just extend their contract with their current provider? I'm not sure why they would route it through Dalton Consulting unless they were using that firm already.
These little voting machine service firms are popping up all over the place, as if we can just entrust the secret counting of our vote to an unknown new LLC corporation operating out of a mailbox or commercial space in another state, which hides the name of its owner and key people from the public.
Public records time. I will request the information from Johnson County on all three bids, along with some inventory and accounting information. |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8710
Registered: 12-2004
Best of Black Box?
Votes: 1 (A keeper?) | | Posted on Thursday, July 3, 2008 - 6:28 am: |
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Dalton Consulting, which wanted more than a quarter of a million dollars in taxpayer funds to lease the voting machines, "not including project management and ballot layout", appears to be a person named James R. Dalton working out of his home.
Indiana Corporations information:
When you run the address through a search engine:
Dalton Consulting is a Limited Liability Corporation, and in Indiana, that means the partners are not disclosed. (Other states, like Kentucky, don't offer a way to hide through LLCs so easily). It seems to me I've heard the name James R. Dalton before, can't remember the context.
ATM Diagnostics also hides names of any principals or employees in other ways. When they purchased their atmdiagnostics.com domain name they paid extra for privacy protection. No name or address except for the privacy protection company is affixed to their domain name ownership.
ATM Diagnostics Web page (yes, this is about all there is to it, except for a few pitches for a device to stimulate auto repair service sales, which can be located by entering search term "atmdiagnostics")
That their $1.6 million proposal would even be considered at all surprises me. As an Illinois corporation, generally speaking they would be required to file corporate documents in Indiana before seeking government funds for work in Indiana. A search of the Indiana Secretary of State Corporations site indicates they have not registered to do business in Indiana, unless I'm missing something.
ATM Diagnostics shows no phone number, no name of any principal or employee, and the registered agent for their corporation, John S. Elias, is a Peoria attorney. A registered agent need not be related to the corporation except in a minor administrative capacity. You often see an attorney act as registered agent for a whole bunch of corporations.
ATM Diagnostics corporate information
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Bev Harris
Board Administrator
Username: Admin
Post Number: 8712
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 7:35 am: |
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Related public records request posted here; responses to that request and documents will be posted in the records request thread:
http://www.bbvforums.org/forums/messages/142/76334.html |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8713
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 7:51 am: |
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James B. Dalton appears in documents indicating that he works for ES&S.
This raises some interesting questions: Why would ES&S submit a bid, with a separate bid going in by one of their employees? It is possible that James B. Dalton no longer works for ES&S, but generally that would involve a covenant not to compete, nondisclosure agreement, etc.
This Illinois document, from Feb. 2007, lists James B. Dalton as representing ES&S at the bottom of page 1.
http://www.elections.il.gov/Downloads/AboutTheBoard/PDF/02_20_07Minutes.pdf
This Michigan document, from June 2006, lists James B. Dalton as a region leader for the ES&S AutoMARK rollout
http://www.michigan.gov/documents/Automark_rollout_web_161307_7.pdf |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8714
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 8:02 am: |
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James B. Dalton* has apparently left ES&S and is now competing with his former employer. * He is listed as James R. Dalton in the domain listing.
Dalton Web site: http://www.daltonconsultingllc.com
Dalton Consulting is available for all of your Election services and maintenance needs. My personal background includes 8 years of service with Election Systems & Software where I was a senior Project Manager of Operations and an expert with Ballot Layout, Coding, and Tabulator maintenance. I am proficient with:
Ballot Layout – Election Data Manager (EDM)
Ballot Visual – Ballot Image Manager (BIM)
Ballot Production – Ballot on Demand (BOD)
Coding – Hardware Program Manager (HPM)
Modem – Data Acquisition Manager (DAM)
Result Reporting – Election Reporting Manager (ERM)
AutoMARK Information Management Systems (AIMS)
I also have an extensive background with your Hardware including:
M100
AutoMARK
iVotronic
M650
M550
IV-C
II-C
IIIP-Eagle
Throughout the past 8 years I have managed projects for jurisdictions in Indiana, Michigan, Illinois, Alabama, Mississippi, Texas, Florida, Arizona, California, Kentucky, North Carolina, South Carolina, and the Toronto Elections in Canada.
I would like the opportunity to continue my professional expertise within your jurisdiction. I appreciate your time and business for present and future services with Dalton Consulting. If you have any questions please feel free to call or e-mail directly. |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8715
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 8:15 am: |
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So here you have it: Dalton, at least, is an experienced project manager with product knowledge, who (according to him home page) plans to make himself more accessible than ES&S.
We know nothing whatever about ATM Diagnostics.
Since Dalton is open about his former relationship with ES&S, one assumes there would be no contractual encumbrances.
ES&S is a tight-lipped, privately held company which has often shifted service duties to subcontractors, some of which have caused very serious elections problems (see ES&S section in our vendors area). With ES&S, the Johnson County voters are forced into "Trust Me" mode with both local officials and whoever ES&S sends out there to service the voting system.
With Dalton, the Johnson County voters are forced into "Trust Me" mode with a single individual, James Dalton, and with local officials. At least they will know who they are dealing with. One should not assume that because ES&S is large, it will be able to better service an account, because ES&S typically uses subcontractors of varying skill. However, depending on the number of contracts Dalton picks up this fall, he may be stretched thinly. And what happens if he gets hit by the flu the day before the election?
ATM Diagnostics is a firm that is secretive in its public disclosures. I assume that the names of the principals were at least disclosed to Johnson County in its proposal, but other than a pattern of failure to disclose to the public, we know nothing and won't, until we get a copy of the proposal.
In Indiana, bids and proposals are public records after they are unsealed, as these have been. |
Catherine Ansbro
Frequent Voting Rights Forum Participant
Username: Catherine_a
Post Number: 5110
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 8:31 am: |
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Dalton may indeed be a former ES&S employee, but he doesn't exactly say that is the case. He gives a former title at ES&S but that's not to say he doesn't have a different, current one. Nit-picking, I know, but usually in these things my imagination is not nearly up to imagining what is really going on.
It's possible that Dalton is a current ES&S staff member who is participating in bid-rigging by submitting a bid slightly higher or lower than ES&S, to ensure that a certain bid "range" is maintained--or to make the open ES&S bid appear to be "competitive".
It's also possible that Dalton is a former ES&S staff member who is now competing against his former employer by submitting a bid he believes will be lower or more attractive than ES&S's bid. (Has he got any key allies on board the decision-making body? Has he given any formal presentations?)
It would be interesting to compare the two bids. |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8717
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 11:03 am: |
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Catherine, you always have valuable insights. Yes, I have requested the bids so we can do that. Apparently they are designed so that you can't put them up against each other head to head -- and I don't quite get how ES&S suddenly increased their bid either. |
Adrian Erwin
Voting Rights Forum Participant
Username: Defender
Post Number: 1
Registered: 1-2008
Best of Black Box? 
Votes: 2 (A keeper?) | | Posted on Thursday, July 3, 2008 - 12:34 pm: |
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Hi Bev:
I live in Johnson County and wanted to clarify the LLC structure:
A limited liability company (LLC):
* is a type of business ownership combining several features of corporation and partnership structures
* is not a corporation or a partnership
* may be called a limited liability corporation, the correct terminology is limited liability company
* owners are called members not partners or shareholders
* number of members are unlimited and may be individuals, corporations, or other LLC's
In Indiana the formation document is called the Articles of Organization. The Articles of Organization should include the LLC’s name, its purpose, its address, and the name and address of its registered agent.
Hope this helps.
Adrian |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8718
Registered: 12-2004
Best of Black Box? N/A
Votes: 0 (A keeper?) | | Posted on Thursday, July 3, 2008 - 2:50 pm: |
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Thank you very much, Adrian. Of course, a registered agent may or may not be involved in the company, other than in a minor administrative capacity. Since the registered agent for Dalton Consulting is James Dalton, it's a pretty good bet that he's very involved in the company, and his Web site confirms that.
ATM Diagnostics, on the other hand, seems to be using a hands-off registered agent, and also isn't registered in Indiana, at least, it doesn't show up in the Indiana corporations database.
The members of an LLC, in the case of voting machine companies and their service technicians, are very relevant, because we already know that the ES&S system can be manipulated to produce incorrect results if you have inside access.
The members of these LLCs might be fully disclosed on the bid proposal. That's what I'm hoping.
As an illustration of how important this is, while running searches on the address for ATM Diagnostics, I came across an identical street address in a different Illinois town. The address was for the chairman of a major political party. It gave me a start. If it had been the same town, I can't think of anything much creepier than that.
Another example of why it's very important to know who the owners, shareholders, members are, is to learn whether they are related to anyone involved with the purchasing decision.
Glad to know you're in Johnson County, Adrian. We'll keep our eyes open for what happens next! |
Bev Harris
Board Administrator
Username: Admin
Post Number: 8719
Registered: 12-2004
Best of Black Box?
Votes: 1 (A keeper?) | | Posted on Thursday, July 3, 2008 - 2:52 pm: |
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On another topic, my assistant mentioned something I'm getting very curious about. Didn't Johnson County have insurance? If not, why would they let $2.4 million worth of equipment sit there uninsured?
I realize that simply having insurance is not adequate, it needs to be flood insurance, but any time I've insured equipment or property, the agent has brought up the issue of flood insurance.
Also, we did public records requests to the flood states (thanks to the alert thinking of one of the volunteers here, Jane Schiff). The Iowa records show that Iowa counties moved their voting equipment to other buildings or higher ground, and therefore did not sustain damage. Iowa is West of Indiana, and the floods traveled West from Iowa towards Indiana. If I'm not mistaken, they hit Indiana a couple days later, or at least a day later. I wonder why Johnson County, Indiana didn't take the precautionary step of moving the machines?
Here is one of the public records we recieved from Johnson County IOWA. Compare this with Johnson County INDIANA:
Iowa moved machines to higher ground:
Of course, this is a great opportunity for Johnson County to get paper ballots, isn't it? If they still go back to paperless touchscreens, they're going on the Watch List for November, since with everything we know now, that would be kind of a reckless decision. |
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