Good afternoon, the committee on ethics and government
oversight. Will now come to order. We have uh 2 pieces of
uh of agenda items. Uh, before we get into the specifics
for them, we will begin with a roll. Call to establish
Quorum. Please note that your yes or present response will
be deemed a. Yes, vote. When this Quorum call is used for
reference vote, for later, items. Chairman Martin is
present. Vice chair Haden alderwoman Lee,
Alderman. OSHA
alderwoman Taylor alderwoman, tabaris alderwoman Scott.
Alderman Talya Ferro.
Alderman waguespack.
Alderman pisado.
Alderwoman nent Alderman Vasquez, Alderman. Reilly
Alderman Lawson.
We have 10 members present. We have a quorum alderwoman
alderwoman Taylor and Haden have requested remote
participation in the committee meeting under rule 59 is
their motion to allow them to do so.
Alderman Vasquez, so moves all those in favor signify by
saying, I all those opposed say, no. The eyes have it, uh,
these 2. Alder, women are allowed to attend the committee
meeting remotely, we will now go to public, comment a
period set for 30 minutes, out of respect, for everyone's
Time. Each speaker is limited to 3 minutes. We have, uh, 5
to 6,
People signed up for public comment. The first uh, is James
McCoy.
James, you can go ahead at your convenience.
Okay, I can be heard.
Okay, I like to see. This is a meeting of ethics.
I would say first off.
The way Chicago has always treated black people ever since
the Great Migration with black people came over here.
Working in fact
It's not yeah. Okay hello. Okay. Okay all right, it's fine.
Fine can I get? Yeah. If if we can give him his full 3
minutes please. Thank you.
Go ahead.
The way, the city of Chicago has always treated the black
community, even coming here. From The Great, Migration has
always been as second-class Citizens, third class citizens,
less than human. We've worked to develop the economy of
this country. This entire country, we've worked to develop
the economy of this state. We've worked to develop the
economy of this city and we've been neglected, we've been
segregated, Chicago, is 1 of, if not, the really, the most
segregated cities in the United States of America, and we
keep having City officials. We keep having Mayors, we keep
having Governors saying that they're going to come and
mitigate the problem they're going to come with some
Type of resolution.
And they don't do that year. After year, Chicago continues
to be the number 1, most segregated city with the black
sides, all of the black neighborhoods being the most
deprived, there are no poor white neighborhoods in Chicago.
There are tons of poor black neighborhoods, almost all of
the black neighborhoods where black people are
predominantly, are poor.
Even though we pay the same taxes, we pay the same
government. We follow the same rules, we work the same jobs
yet our neighborhoods, get neglected when the schools got
shut down, the government said that they were going to
bring them all back. The government said they had to shut
them down for whatever reason, they said they were going to
bring them all back and they did try to when they tried to
turn the school into a shelter for illegal immigrants.
What is the definition of a criminal? A criminal with
somebody who commits crimes? There's a legal process in
immigrating to this country. There's a legal process to be
in an asylum Seeker, they're skipping all of that.
If you skip the legal process, you are committing a crime
that makes you a criminal. We should not change the
definitions of these things, and the government is
subsidizing it. The government is allowing it to happen in
spite of the people's requests.
The government is supposed to be here to serve the people.
The people are requesting that they stop it. They're
ignoring the people's requests. These people are coming
here. They're committing crimes. This is well documented,
their, uh, committing fires. They're selling drugs is
prostitution, running rampant diseases. We don't know what
these people have, you're not making them get any type of
background check whatsoever. I went and I interviewed them
and I asked them and they said we're not getting any type
of background check whatsoever. We just get put on a bus
and we get shipped over here.
And when we come here with these complaints, we're told
that we need to have some sympathy for them.
While the brunt of all of the negativity of this illegal
immigration, this immoral unethical illegal immigration is
faced on us and we're supposed to be squatting. We're
supposed to be the stepping stool.
For a buffer class of people to come here and replace the
black community in Chicago, and we're not going to allow
that anymore. Even if the government, even if the wants us
to, we're not going to allow that anymore. Thank you Mr.
McCoy?
Next up we have Jessica Jackson, Miss Jackson. If you can
come up.
Please begin at your convenience.
Um, so the topic is ethics.
Um, well, what we do know is that ethics are not followed
with city council, we know that,
We know that.
You all pretty much do, whatever it is that you want to do.
We just left out of a spot fire meeting where they were
trying to decide whether or not they should keep that tool.
And it sounds as if.
It's about the money.
Which makes absolutely no sense when the same city is
pouring money for illegal immigrants.
But for the citizens that need the protection, the city is
contemplating removing something else, taking something
else. Another resource from the citizens and giving it
To non citizens I can guarantee you, whatever money.
They're going to take to stop Spotify is going to go over
to the party of illegal immigrants.
I've never seen anything like this before.
Alderman Bill started last year talking about how much money
money was being spent with illegal immigration. I
specifically remember him saying, if my money, if this much
money was spent on my ward every month, how would it look?
How would my ward look?
I just don't understand it.
You sent put in complaints.
About the things that's going on with the government in
Chicago. Nothing happens. It goes ignored.
And when you do catch these people,
all of the sudden it's crickets.
You can't get the people of Chicago in authority to follow
the law. You can't get them do it from the judges.
To the inspector generals.
To the ultimate to the mayor.
Where are the rules? What ethics I've come to you over and
over again.
You you you a civil rights. Attorney you give me that. Look
that you giving me now like you been. Oh, so really
attentive but then you don't do no follow-up.
I've never seen nothing like it before in my life and to
have a at this committee when everybody almost in here is
completely unethical.
It doesn't make any sense. You all don't want better.
And to have fast Quest and lowest set your Lopez to say.
Oh, they don't know about spots fire because they, the
mayor's, man, they got to do whatever the mayor says, do.
Because the mayor Gonna Keep on giving them immigrants that
money.
They bet not disagree with him.
Or they ain't gonna get that money. We could be blooded out
in the street. They gonna keep on talking about these
immigrants.
Thank you, Mr. Jackson. Next up, we have George. Blakemore,
Mr. Blakemore, if you can come up, please
And begin at your convenience.
Thank you.
Ethics the inspector Joe?
What is ethical?
What what's not it?
You know what? Motivates me, I was just getting off trained
or can and hand to that, man. That go down the city hall
and give him hell. Keep up the good work.
That's where I get my inspiration from. The people my my
from some of you. So the big picture is the Immigrant
illegal immigrants. So we black people, we have to look in
the mirror at ourselves. We have to check ourselves and you
know something the government hate us.
and some of us hate us, also,
So we are our own problem. You're dependent on a government
that enslaved, you captured, you and enslaved, you and
brought you over here, not as an immigrant, not as a
refugee to help you. They hate us.
Can't you?
Just, and it's okay.
We have to love each other through for each other. God has
given us everything we need. All we have to do is use what
God has given us and if you don't use what you got to get
what you want, you know what you got.
You don't need it.
so all of we are capable of being a great people, we have
survived the Holocaust of slavery and we can still do it.
All we have to do is look in the mirror. Go we're God's
children. We are little Gods. We got to recognize God
created us first.
we great, we have to reprogram ourselves because on the
plantation know, all we have to do is Purge. Ourself of
negatives and become become strong, black men, and women.
And I'm gonna preach. Use this very quickly. You must use
what? You got to get what you want. And if you don't use
what you got to get what you want, you don't need what you
got.
Gotta give you everything you need. So we have to look in
the mirror at ourself and we have become our own enemy.
Enemy of these white folks got their agenda, whereas our
agenda we got to teach them how to treat us if they don't
know by now we got to teach them how we got to stand up and
and defy
Their racism. That's good. Every race like this on.
God Bless the Child of God is on and self preservation is
the first law of nation black. People become selfish
f****** on you. The you everything you need, all you have
to do is use what God gives. Thank you, Mr. Blakemore, I
want to recognize Alderman, Reilly for purposes of Quorum.
Next up, we have Tuan Sims, Mr. Sims, if you can come up
and begin at your convenience,
Short check.
Me we are on enemy blood than that can have your big nose
and your black booty hole.
Um,
I wrote something down but let's just go off the top. So is
it at the Cuda tree? Um,
black Americans here in the city, the way we being treated.
On all the levels that count also. So we got the work
force, that's David. Who else we got? We got housing that
CIO Lopez also education. That's another department to
discuss.
But we we greatly oh Mr. Lawson back there with the
humanities that's public.
Not what? He's got. Public zoning and Public Safety. What
is or 1 of them? But still it's like, wow.
The most unethical, I think this is 1 of the most unethical
groups of people.
Able to just exercise whatever will they want on the
people? Because we elected them in, we elected them. And so
now they get to beat us, they get the abuse us they get to
treat us any way they want. Um,
I brought up Maria Haden still haven't had Miss Deborah.
Weissberg investigate her.
1 of the most unethical, all the people in this um City.
She building her Gabriel Hood, she she using um, East
Rogers and she going to build out a gayborhood
She gonna do whatever she want.
she gonna treat people like however, she pleased, but
nobody gets to investigate that, but they going to
investigate the father
They going to investigate the the individual been shot up
in the neighborhood. A neighborhood been from 30 years.
Now I just get to do me because I'm all the woman or
whatever. I don't. Wow um
the work force development with David.
Yesterday, I had the unpleasant. I, I got them. I had to
unpleasant. Um,
Moment just to to to meet a person from, I don't know, he
worked in the city. He said, I swore in a thousand illegal
immigrants yesterday. And on Monday, they all had jobs. I
was like, Wow, with such Glee
who else out of that thousand individuals who
Shouldn't be employed, or I'm not saying that people
shouldn't get, um, seek happiness, because black Americans
been seeking happiness.
Equity and all these different things consideration and all
these different things. So out of that thousand people who
didn't get the doubt, who didn't get the jobs and how did
they get jobs? So quick, how was it that the
Migrant family. Got in 2 years. Able to have a home
ownership a home.
Home ownership in Austin, I wonder how many also people
that's lived in Austin, All This Time. Have not
Got home ownership.
All these areas.
But the unethical treatment that black people receive in
this city will continue to go unacknowledged. We, the
invisible people until we tell the city up until we burn it
all the way down. We going to remain invisible.
Thank you Mr. Sims. Next up we we have 2 final people. 1
person did not include their name but in terms of
representing it says myself and Black America. I believe is
that person in the room?
That's right. Yeah.
Okay, Zoe Lee.
um,
Yeah, this is government oversight and ethics. So,
My mother has taught me ever since I was a child to always
go to the top. If any of you didn't like something,
something to make any sense, always go to the top and I've
always went to the top but only in like when it comes to
private corporations and stuff, you know, get to the CEO,
bang, get what you need.
But fighting the government.
this is this difficult and it's a challenge that I know I
finally beat
I started.
With going to Merrick garland, that was the Inspector
General Federal level, then Christian Clark, civil rights,
Federal level then, Michael Horowitz, that's justice
department, justice department, then then then Michael
Horowitz, right? That's the general inspector on the
federal level, then Susan Halen, then, Deborah witzburg.
Then Attorney General kwami rahu.
Right. I went, I did. I went through everyone. Then my
Alderman, then the mayor free Mayors Ron manual.
Um um uh, Lori Lightfoot, and then Brandon Johnson. So I
did all the steps right for a year to it took me a year to
figure this out because at the end of the day is the city,
the city of Chicago
And the state of Illinois is still in black people's
property.
and they've been stealing black people's property and
recycling it
By putting affordable housing in government-run, how? And,
uh, stores on there, like they're trying to do with 1 of,
um, with 1 to Save A Lot on, on my lot. Now that I already
reached out to the yellow banana and Save A Lot, they
already know, it's, it's a rat, but the fact that I had to
go through all those chains,
And this is the Democratic. This is a Democratic party that
the city that my mother has been voting. My mother 75 years
old, my mother been voting Democrat, since she was 18 years
old and the fact that she had to go through
Not being heard having to go to the hospital, having me
having to get involved, then having to go to New York to
go. Get
some type of media because
the aldermans were scared to be behind us me and Miss
Jessica to discuss that how they're still in black people's
property.
Black people have to go through 15 Steps, when a white
person or a non-black person has to go through. No steps.
always have to have all the paperwork to show the
injustices when a white person can just come in and get
whatever they want. It's 2024 you think he won't continue
to do deal with that. I technically own the city of Chicago
and I know I do.
Because y'all in a billion dollar deficit already, my
mother's lawsuit is 3 billion dollars and we're not
settling.
Because this is what y'all do. So now, you have 4 billion
dollars that y'all owe.
and the and the main people that be stealing not even here,
Walter Bernette
Michelle Harris all the old Chicago. They ain't even here
because they trying to figure out how they gonna get out
this s***.
Thank you, Miss Lee. Our last public speaker is TJ Hughes
Miss Hughes, if you can come up and begin at your
convenience. Thank you.
Um, good afternoon, my name is uh Teresa TJ Hughes. I'm
here in regards to this ethics.
And I'm still questioning also what exactly?
Is ethics when it comes to the city of Chicago.
Now, I have worked in the city for over 30, something
years. And I have seen a lot of stuff
My concern as a citizen in the city of Chicago right now is
the fact that we finally got rid of Eileen valezquez from
the procurement Department.
Because she was just horrible.
And now,
and I feel, instead of giving the young, ladies, the young
lady, I think I forget her name but she was the acting
um, procurement Chief procurement officer, the opportunity
and the chance to see if she can really handle it because
she's been there for all these years you're bringing in a
new person and it's not nothing personal against this
person because I happen to know her
Pretty well. And uh, so it's not personal. I just feel that
that she is not qualified enough to become the CCF,
whatever, CP CPO
Whatever um responsible for billions of dollars of revenue
for contracts, when she can't take care of her, our own
personal stuff and she owed a city 10 almost ten thousand
dollars. I couldn't owe the city, a hundred dollars when I
started in 1988.
5 under mayor Washington because I had some parking
tickets. I had to pay those parking tickets off before I
could get in. So I'm trying to figure out how you allow
someone to
owe thousands of dollars and give her an opportunity to
have the time to rectify it because of John Robinson,
wanting her to be named. That's his girl. Uh when I feel
like he's got his own issues too, and these people are
supposed to be helping the mayor, or having been in the
mayor's corner. I don't feel like they're in the mayor's
Corner when they do this kind of stupid stuff because
People in Chicago, little people, the people that vote for
all of you.
And expect you to do your jobs, you're not doing your due
diligence. Why would you even allow her to even be on a
list?
To come before you and you're all going to vote for her.
I've already heard about that. So the deals that are being
cut things that are being made to happen,
Is not ethical, so you're the Ethics Committee. How is
ethical for 1 person to owe 100 dollars, can't get in but
somebody that can owe $10,000 can just walks on in. That's
not right. So I'm very upset. I am a citizen and like I
said, it's nothing personal. It's just the facts.
That concludes public comment we will now turn to the 2
items on today's agenda. First subject matter hearing on
the office of Inspector General's, audit of the department
of finance's workers compensation program and second
subject matter hearing on the uh same office as quarterly
report for the second quarter of 2024. Before we do turn to
those, um, I do want to note that uh, there is a rule 45
report from July 2024, which has been sent out to the
committee. Can I get a motion to approve that report?
Alderman, Reilly so moves. All those in favor, signify, by
saying, I all those opposed say no in the opinion of the
chair, the ice habit. Now we will begin the subject matter
hearing on the Workers Compensation Program like to
introduce, uh, Inspector General. Deborah witzburg to
provide a brief summary of that report and if you can
identify yourself for the record before doing, so thank
you. Good afternoon. Thank you for having me. I'm Inspector
General. Deborah witzburg.
Um, I just need a little bit of help getting the slides
started. Sorry,
no, thank you. Apologies for the delay.
Uh, okay, everyone can see this. Yes.
All right. Um, thank you again. Thank you for having me to
to talk a bit about this report. Um, we published in audit
of the Department of Finance as administration of the
civilian Workers Compensation Program. I know you all have
the report, um, and and we have the benefit of having the
cummer here, who will be better positioned than I to answer
some technical questions about the program itself. But but
I'll, I'll I'll give sort of a high level summary of of our
audit. Um, with a little bit of History to begin in terms.
Of context. I know many of you know this history uh quite
well but the city council's own committee on finance
administered. The Workers Compensation Program for decades
until 2019. Um, when the committee on finance was was
chaired by Alderman, Ed Burke. That was an unusual
Arrangement. Uh, it was unusual to have a program of the
scale of of workers compensation administered by a
legislative committee rather than by an executive
department. Um, when
Alderman, Burke resigned as chair of that committee
shortly. Thereafter days thereafter, the city transferred
responsibility for the work workers comp program from the
committee on finance to the Department of Finance, uh, in
the executive branch of city government by Amendment to the
municipal code. Um, notably be, there were many effects of
the programs Administration by the committee on finance 1
of them, was that that rendered the Workers Compensation
Program, almost entirely invisible from oversight and from
public transparency oig did not until 2019 have legislative
authority to audit the operations of city council. And so
for the entire lifetime of the Department of Finance
administration of this program, um there was no was no
meaningful opportunity for oversight so Authority for this
program. As I say, was transferred to the Department of
Finance in 2019. Um, and within days, after that transfer
of authority, the city hired Grant Thorton. Um,
In audit firm to as you see here to assist with a review of
the program to identify potential patterns of of fraud,
waste and abuse.
Grant Thorton formed that review and issued a report in
2019. Um,
That report found. We'll talk a little bit more about this.
What Grant Thorton described as serious flaws in the
program.
Specifically Grant Thorton found that the the workers
compensation program was in need of substantial Improvement
to operate more effectively as well as to prevent and
detect potential. Fraud, waste and abuse.
In that report Grant Thorton made a series of
recommendations across 10 categories of operation. Um,
to improve administration of the program and I will say
here, you all have I, I've been before you all before
talking about follow-up reports that we have done on our
own recommendations, where we go back. And look at, whether
a city department, is made corrective actions in response
to recommendations. What we did here was a little bit like
that format of a project, except that the recommendations
that issue were not ones that we had made, but rather these
ones that Grant Thorton had made. So in the big picture,
the spirit of, of our audit was to look at whether the
Department of Finance had adopted corrective actions and
response to the recommendations that Grant Thorton made.
um,
After the review and recommendations by Grant Thorton, the
city hired, Gallagher, Bassett, as a claim services
provider uh to administer. The the city's program, the
original contract began August 1st of 2019 ran through July
31st of 2020 that contract as of our writing had been
extended to the end of this year. I mentioned this in part
1 by way of history, but 2 to say our kind of period of
review here in this audit went through July, 31st of 2020,
the end date of that first. Um, Gallagher Bassett contract
And the objectives of our audit.
Were to determine as I mentioned, whether doof had
implemented corrective actions as recommended by Grant
Thorton. And whether diouf was publishing, the annual
report on activities of the program as required by the
municipal code. And I will say, we'll talk a little bit
about this but the issue of the annual report on the
what information is publicly available about the workers
comp program is, I think important to understand in the
historical context of the program that when we have a
when we have a program which for many decades operated very
much in a windowless room. Um, we are not starting from
equipoise, we are not starting from neutral in terms of
public trust and transparency. And I think that's an
important lens through which to, to view the transparency.
Um, requirements and progress of the program. I also want
to highlight here as we think about objectives of the
project that there's a great deal at stake here. Um,
Both in terms of of the medical needs of city employees who
are injured at work and also in as measured by taxpayer
dollars. Um, the Workers Compensation Program as it stands
has over 2,000 open claims or I should say, as of this
writing had had over 2,000, open claims which had expected
costs over their lifetime of more than half a billion
dollars.
Um, in 2022 alone, the city paid out 73.5 million in
claims.
This is a very, very big dollar question. All of these
questions I should say, are big dollar ones. Um, and that's
important when we think about the impact of improvements,
both improvements made and improvements still on the table.
Uh the scope um the scope of the audit. So the subject was
the workers comp program for non-federally funded civilian
employees. So to be clear this does not include sworn
personnel.
Um, and it does not include Grant funded employees.
Uh, dof does not evaluate claims for sworn police and fire
Personnel, um, or for any federally funded civilian or
Aviation employee programs.
The time period, I mentioned began on May 10th of 2019 and
ran through the end of July 2022. When when the first
contract ended
Um, we have 2 findings in this report. The first is here.
The doof has substantially implemented Grant Thorton's
recommended corrected, actions for the program. Um, that's
the bottom line here. The bottom line here, is the
tremendous progress has been made in administration of the
workers comp program. There are further improvements to be
made. We'll talk a bit more about that, um, but but I think
it's important to say that this is from my perspective at
bottom, a good news story. Now to say that we have improved
dramatically from where we come has much to say about from
where we've come. Um but important to say that there are
substantial improvements that that the city has realized.
Um in dof's administration we note that among the
recommended improvements yet to be realized at the time of
our report was the adoption of a formal peer jurisdiction,
analytic program that is to say. Um there was a
recommendation to learn lessons from other cities in their
administration of programs. That is probably frankly a
practice which the city would be well served by adopting
across a wide range of operations. Um,
And I think that is that is true here as well.
Uh, in a, in a bit more detail. We looked at the
implementation of these corrective actions. As I mentioned
across a, number of different operational categories, we
found that in the category of fraud risk doof, has
implemented. The recommend the recommended actions, as well
as in the category of data analytics.
We look, we broke into a number of different um, categories
claims Administration and found implemented recommendations
in the area of benefit delivery substantially implemented
1's. Initial file review, medical review forms, and closure
and partially implemented recommendations in file
Administration. And, and with apologies for going into the
weeds there, this is just to say that there is a great deal
of progress in some of these areas and at least some
progress in all of them.
Our second finding having to do with this public
transparency. Question about about sort of how much light
we have been successful in bringing into what had been a
windowless room in city government. We found that the
Department of Finance is publishing, the annual reports
that are required by the municipal code, but that there are
improvements yet to be made, uh, in standardizing that
report and ensuring that the required content is included
in each of them.
um so we make a series of specific recommendations here um
for doofs continued efforts to implement, those remaining
recommendations from Grant Thorton um including some
some specific suggestions about clarifying procedures in to
ensure compliance. Um, we recommended that doof further,
develop that peer jurisdiction Network that we discussed.
um, along with a procedure for timelines and
responsibilities for the annual report containing all the
information required by the code, um, we published doof's
written response, along with the audit, I won't speak for
the controller, who's here to here to talk about dose
response, uh, directly. But I will say, at a high level
that from our perspective, dose response, indicated a
commitment to implementing the those remaining corrective
actions from the grant Thorton report, um, and to kind of
continue its work in the service of transparency by way of
that annual report, I will say again, I think the
requirements are on the annual report read as though they
are sort of clerical in nature. I think those are
fundamentally important from a public trust and legitimacy
perspective. You all have heard me talk a lot about the
deficit of legitimacy at which the city of Chicago operates
this sort of program where an enormous pile of public
dollars was being run out of a windowless room. This is
precisely.
The sort of thing where mistrust and distrust in government
accumulates and, and good, and clear, and reliable public,
reporting is an important antidote to that sort of
mistrust. So, um, here we have the apologies. This is a, a
very word dense slide as I see it up there, but the the
conclusion of the audit is is what we have talked about
here.
Um, that the the administration of the workers comp program
by doof with use of this third party administrator
represents a critical improvement over the administration
of the program. Under the, the old model, the pre-2019
administration under the committee on finance, um, do have
increased transparency of the program by publishing the
annual report. And there are some improvements left to be
made both in response to Grant, Thorton's recommended
corrective actions, and in the thoroughness and um, and
utility of the annual report.
Um, with that, um, I'm I'm happy to either answer any
questions or to, to turn the floor, over to the controller.
Thank you General. Um, next we're going to hear from uh,
controller Chase, Ray Winkle controller, if you can
introduce yourself for the record.
Hi everyone. Uh, Chase round call the city controller. Um,
should I go ahead and then I
So I wanted to start off by just acknowledging something.
Um that we have is a little bit unusual. There's a staffer
of mine who is going to be zooming in to to provide some
testimony as well. Um I think in a lot of situations where
we talk about audit findings especially 1, where we have a
lot of positives uh it's easy for me to come in and and
claim victory as we go forward in a very important program.
I think it's important to hear from Daryl because I've been
here for a year.
and Daryl has been here the entire time working on these
diligent items. Uh, focusing on trying to get us to a point
where the city can feel comfortable in their programs. And
oftentimes, I don't think that we have enough credit to the
folks that are just on the ground. Trying to fix what was a
pretty heavy mountain to climb, uh, when this started 5
years ago, so I'm just going to give a brief statement and
then turn it to Daryl.
Um, good afternoon, chair, Martin, distinguished members of
the Ethics Committee. Thank you for allowing me to testify
before you on the progress of the Department of Finance has
made to reforming the city of Chicago's Workers
Compensation Program.
Years ago, an independent audit of the Workers Compensation
Program conducted by Grant Thorton. Found significant deaf
deficiencies in the program causing millions of dollars in
additional cost to the city.
Prior to 2019 the workers compensation program was
administered by the city. Uh Council committee on finance,
an unusual responsibility for a legislative committee to
oversee an executive program since the transfer of the
program to the Department of Finance, give a deal of has
worked diligently to evaluate the grant Thorton
recommendations and Implement them in a responsible manner
to benefit both the city and city workers the program.
Serves the goal has remained the same since the transfer to
ensure the modernization of the Workers Compensation
Program.
An elevated to a high standard of ethical scrutiny, 5 years
on. I am pleased to report that the oag has found.
Significant progress has been made by the deal by doof on
the Workers Compensation Program. The oag report lists a
number of Incorporated improvements to the program that has
increased oversight and created a strong third-party
process to ethically, review workers, compensation at the
city. The program administrator Gerald matthysse will go
over in more specific specificity the areas of improvement
the program has made in the last 5 years as well as the
areas of improvement we look to make in the immediate
future but suffice to say the transfer of the Department of
Finance 5 years ago, was a positive 1 to restore a more
ethically sound Foundation to the programs and
administration in total, the city has saved 31.7 million
dollars since 2020. Due to these programmatic improvements,
while I am pleased with our progress thus far, we know that
further improvements are necessary in the coming years to
ensure the strong.
Strongest possible Pro program. Going forward. I welcome the
recommendations made by the oig and can report that we have
been working diligently on further. Implementations of
those suggestions. I appreciate your time and questions and
we'll now turn it over to Daryl. Matthysse for his review.
Thank you Comer. Uh, uh director. Matthysse, if you can
introduce yourself briefly for the record before proceeding
with your testimony. Thank you. Uh, I am Daryl. Matthysse
director of workers compensation in the Department of
Finance.
And please proceed at your convenience, okay?
Good afternoon, chairman Martin and members of the
committee of ethics and government oversight.
as our controller, shared
My name is Daryl matthysse and I am the director of Workers
Compensation Program in the Department of Finance.
Uh for the purpose of not being redundant uh relative to
the history of the program. I'd like to go into a little
bit of our uh,
Execution of strategy and programs uh, to improve the
worker's compensation risk management.
To execute it administration of the Workers Compensation
Program. The controller has entered into an agreement with
Gallagher Bassett services, the third party administrator
that provides fiduciary and administrative, uh, services on
a contractual basis and identified, a designate to oversee
and manage the program. I am that a designate.
These responsibilities include claim Administration risk
management information systems and risk management.
The city through the Department of Finance, has had a TPA
contract with Gallagher Bassett since 2019 under Department
Department of Finance, oversight, the city relies on
to provide recommendations and administration relative to
claim valuation. Reserve placement data capture and
retrieval metric for metric consideration. Medical
management Rehabilitation Cost Containment um litigation
management, legal uh, control medical bill payments,
statutory benefit payment segregation and third-party
recovery management and claim investigation.
Diouf was challenged with transitioning from a city
administrator program to a third-party administrator
program to address areas of opportunity identified in the
grant Thorton report and assessing, the city's claim
exposures to be able to
Create an accurate valuation for booking future expenses.
Finally another challenge was building a new industry
experienced City team. The original team assembled by the
committee on finance largely life members with the
necessary industry experience. Many individuals on the
team, did not have claims leadership, expertise required to
effectively guide and manage the responsibilities.
Entrusted them
Was made significant progress. Toward the goal of, becoming
the gold standard for a large municipality and workers
compensation Administration. Some improvements include
investigation evaluation, resolution of claims opening, new
claims within 3 days of accident, determining claim
Acceptance in less than 14 days, most within 5 and refresh.
Uh, referrals to the oig office of Inspector General for
suspected fraudulent claims.
Following several years of remediation efforts, we were
compelled to reopen aged litigated files and increased
settlement opportunities. These actions have led to
significant improvements in key metrics. Including
Uh, 89% reduction in reopen Legacy, claims from 371 files,
and 2022 to 42 in 2023. Uh, 3 times more closures than gold
established at the start of 2023 Department of Finance. Uh,
5% and 10% reductions in Los work days. And in claims from
at 12 months and 24 months respectively, uh, 17% increase
in settlement Authority, uh, activity. I'm sorry, uh,
avoiding, uh, Awards and 13.2 million reduction in claim
portfolio. Total incurred value. These outcomes have led to
Savings of 9.7 million for the city of Chicago and 2023.
When compared to 2018 claim outcomes, the total savings
achieved cumulatively since 2020 is 31.7 million
In 2023, uh, open inventory or a number of claims at years
in Decline from 2,236 to 1,854 and is below 2,000 for the
first time since 2020. Currently the open inventory for
civilian claims is 1,735 the increase in open inventory
from 2019. To 2023 was driven by the need to reopen claims
that have been improperly closed by the committee on
Finance.
an extensive project was completed by D and its third party
administrator Gallagher, Bassett to review thousands of
closed, claims to, determine if the city's statutory
obligations to Injured Workers, had been met allowing the
claim to be properly closed. This resulted in higher
volumes of reopen, claims experience between 20
20 and 2022.
Calendar year 2023 marks, the first and full year of claims
handling without that project underway.
Over the past 5 years, significant progress has been made
to improve and strengthen the city of Chicago's Workers
Compensation Program, 2019 to 2020 and 2020. With critical
years for establishing governance, controls and claim,
handling best practices in 2021. The Department of Finance,
expanded its strategy to drive, better outcomes and
returning employees to work and resolving open claims in
2022. Accelerated settlements were priority, aligning with
the Department of Financial strategy, to reduce the
overall, backlog of age litigation in 2023 doof's, uh,
Focus continue to be uh,
On claim resolution via settlement.
after several years of increasing Financial reserves to
properly, measure the open liabilities against the city,
2023 was a turning point where Financial reserves were
decreased for the very first time.
Do will continue to build upon the achievements of the past
5 years and drive continuous Improvement. Thank you.
Thank you, director matthysse, uh, we will now open the
floor to questions from Members. Um, uh,
Alderman waguespack, which you like to kick us off?
Just check the sound. Is the sound working? Okay there.
Yeah, okay.
Uh, first of all, uh, chairman thanks for having this, uh,
hearing. Um, and thanks to both of you for presenting
today. Uh, first, I want to thank um, Daryl matthysse,
because in working with him, uh, and our staff to get this
out from under the committee on finance, several years ago.
Um and then handing it off and watching. The first reports
come in from Gallagher Bassett in. I think mid 2021, it was
really Daryl and his team that professionalized along with
the work of Gallagher Bassett um everything that we're
seeing today. So a lot of that credit goes to Daryl for
really digging in um, seeing what was happening prior to
2019. I know for years. Some of us were trying to get this
out from under
The uh committee on finance going back, probably 10 years
before. And um so uh I just want to commend him for all the
work that he put in. And as the finance chair, I was
watching him and his staff, try to, um, essentially
restructure their own internal processes, but also the
staff because uh, what we saw years ago and I think the
Inspector General uh along with the the former Inspector
General were, uh, working with us to try to get more
transparency other than having just the, the final audit
that was available. But to really show what processes
needed to change. So I think with your office is and also
with, um, the work that Daryl did, um, you know, that's
really where we we've seen the Savings in the first year. I
think we only saw 2 million in savings. A little over 2
million and then what Daryl's telling us now is that the
realized savings over 4 year period is if I'm not
That mistaken, 30 million or 30 plus million dollars. Um,
So he, he and his staff were really key to doing this, um,
controller. Maybe, uh, if when would the next report be
coming out or released on, um, updating the Council on the
public on, uh, what Gallagher basket, uh, report would look
like yeah. Um, and I'm glad that this was actually
mentioned in the, um, investigation, because, although
we've been re releasing it, it's been a different month.
Depending on how it works. We're going to try to get into a
schedule of we're between August and septembar. It'll
likely be september going forward. Um usually that gets us
past all of our AER period. Um so that's been kind of the
goal going forward. Is that time period? Um and hopefully
that standardizes from there and that that'll help you as
you go into the budget. I was just going to say it helps us
for the budget season but also for, I think the outside
audits from Dey, um, are do they look at that as well or
confer with you? Yeah, uh, as well as some of our other
internal audits so yeah, right. And when they look at um I
think at, you know, as they've looked at this and seen the
improvements, what does that do for us long term in terms
of their outlook on the city finances? So, and I think, um,
think, um, this also is very clearly mentioned in the oig
report, which I think is important, um,
The closer we get uh Auditors, always loved boring. Uh the
closer we can get to a standard boring process. The better
it is to have confidence in that system that if part of it
breaks down the system itself, will catch that problem. So
you know,
Some of the items uh, that were brought up, like
standardizing on the report comes out. Making sure that
we're having conversations with other cities on a regular
regular. We we we had been doing those but we hadn't
standardized that process. The importance of standardizing
them though needs to be mentioned because of
The Inspector General mentioned. We came from so far, back
from a confidence standpoint to be able to make it very
clear that the system. These are the controls in place, but
then this is when you can expect information,
Helps us whenever 1 of those pieces gets falls by the
wayside. The rest of the system will notice.
You were supposed to have their report out or what happened
when you talk to ex City about this. Um, so I think we're
moving toward a place of standardization in a way that the
system kind of can go forward without having to have a lot
of upkeep on the back end and it kind of has a self, um,
self-fulfilling.
prophecy of kind of like making sure that um when there are
challenges that those are almost immediately foreseen
Sorry, did you want to jump in on that too? No, no. I was
just appreciating the self-fulfilling prophecy. Yeah,
right, yeah. Um, well, I think that was, uh, when we were
first trying to get that Gallagher Bassett report out,
obviously we're in the midst of Co and it was a little
difficult to turn that around, but it was pretty telling
reading that first report that came out. Um, I actually
thought that the savings were too low, you know? It was
only 2 and a half 2.4 million in the first, uh, report. And
I thought, are you sure? Maybe we should go back and take a
look at that again. Um, but I think with Daryl's work over
the years and, and with you both, uh, looking at it.
Um, we'll can, you know, hopefully we'll get to a level
where we've we've knocked out all the problems as you're
saying, and we get to a solid process where we, we're still
seeing savings. We're still seeing improvements. Um, and
you know, and I think, you know, a lot of people at the
beginning were thinking, wow, there's there's going to be a
lot of fraud that's going to be opened up here and I think
it was more, just the Mis missed opportunities and
mismanagement than it was fraud. Not to say that there are
there isn't or there wasn't in any kind of workers comp
system. It happens. But um, I think
For a lot of us, it was um you know what, what savings can
be created for taxpayers and I think that's where opening
the can up.
Finding, you know, the worms in it and saying, hey let's
let's clean this up, was really beneficial to taxpayers as
well and as Daryl saying you know a thirty million dollar
savings um you know we just hope to see that long term and
and that gets built into budget savings as well that we're
that we're not paying out on those um, and and also a
better Workforce. So if, if employees know here's the
structure that I have to abide by instead of a closed door
structure that
Could be going in any direction. Now, they know exactly
what to expect through a more professional services that,
uh, gets people back to work. It helps them. Get through
the process and I think that does better by our entire
Workforce as well. So I want to thank you both for that.
And Daryl especially absolutely Darren. Thank you. Could I
just offer a very quick observation just on the on the
point of fraud. Um, we can we continue to receive referrals
from Gallagher Bassett on on allegations of possible fraud
within the program. We receive allegations like that from
other sources as well. Um, and we investigate those as
appropriate. I, I will say we find it to be true across
city government. That misconduct is often co-located with a
lack in controls. And as we improve controls in and around
the program, we will be better equipped to prevent and
detect and discipline Fraud and Abuse when it occurs. Um,
so just important to say that that we are.
Walking and chewing gum at the same time here in terms of
improving controls and investigating misconduct where those
allegations arise. But also important to note that those
things are related, there's a causal relationship, and as
we improve controls will be better equipped, um, to to deal
with misconduct.
General Alderman, Lawson.
Uh, thank you. Uh, thank you, Mr. Chairman and uh, uh, to
our panelists today, I was actually gonna ask about fraud,
so thank you for bringing that up. But I'll ask another
question about it because, um, as we look at over time over
the last now, 5 maybe 4 year reporting years. Have we seen
an instance of fraud? Decrease.
Or hopefully that increase.
That nah, not not. The problem is, you also have a pandemic
here, which has some weird stuff there darl. Do you want to
comment on that? Great. Um, I cannot specifically thank
you, uh, controller. I, I cannot specifically say that
we've seen a decrease in fraud, but I can say that what
we've seen is a a more concerted effort in reducing and
Reporting in identifying the fraud. Uh, we have to use the
tools within the statutory program. Uh, we're we're
governed by the Illinois, workers compensation act. And
what's typical is what someone may consider, fraud may be a
symptom, magnification and subjective complaint to a
doctor, uh, and that's where a lot of the malingering comes
into play for folks that are injured. Maybe they started
out the spring, but it it turns into something more.
Serious or a protracted time off of work. Uh, those, those
things are nuanced in, uh,
proving through medical opinion and defraud portion. Uh,
isn't as what a Layman May necessarily think is brought
that uh, someone is faking an injury. I think that uh, by
and large most of our hardworking colleagues are are
injured. Uh it's just that something happens while they're
off work where they continue to be off work and we have to
mitigate that through medical opinion and that uh takes
time and uh uh expertise from our medical community. I I
also don't want to pass on the question. We'll get you all
the proud numbers here to here, right? I will say, part of
it also is
I don't know how to say this without we've gotten better at
figuring out the fraud components. So I think you might
It might take a few more years to figure out if we're
stabilizing and and and seeing that that actually decreased
by having it included. Um but we'll get you, the numbers
here and you're out and we'll obviously keep reporting on
that.
Great. Um, I, I was a little. So the number of 2000 current
open clams. I know. It was 1735, I think was the update
exempting sworn employees from the corporate front only. So
I think we've got about 25,000 corporate fund employees. If
there are 10, 12 thousand that are sworn. We're talking
about uh, a percentage that's over 10, maybe even pushing
15 of of City Workforce that have open claims, that seems
high, uh, to me, who knows nothing about Works comp. Um, so
is that sort of uh when we look at our peer cities is that
high or is that high compared, you know, to, I know, you
know, half of them are office employees, half of them are,
are, are more labor? Uh, you know, uh, physical labor, how
does that stack up against others? Yeah, great question.
Um, so it it's higher than we would like it to be
certainly. Um, and we are decreasing in that size. Um, I do
think that we, it's a little bit challenging to compare us
to, like, a New York, or some of those those entities, but
I think it is
Higher than than what I would State as an average of a very
large city, we are pulling that down, um over time and
there's some backlogged items that had to be caught up
which was part of the longer item. Um, so I think that
would be fair to say that. That's a higher number Daryl. I
don't know if you wanted to add anything. Yeah, I do. Uh,
and, and you, you are correct. It is, it is a bit higher,
uh, than, uh, some of our peer group. But what I will tell
you is a lot of the
Number is driven by the Aged pending or old claims that were
were uh, either improperly closed with statuto with the
remaining statutory liabilities uh or uh uh, not
the time that the committee on finance had the program, we
are working through those claims diligently for outcomes
and Expediting uh disposition of those claims uh at a high
clip. Uh I do anticipate, I can't commit to a number today
but I I I do anticipate that that number will drop and
that number will drop and we'll get to our what I would
call our flying out altitude of claims. Uh, we have a large
uh unfortunately, some of our employees do get injured. Um,
but I think 1735 is is still too high and uh, we look for
improvements over the years.
Maybe this is a better marker. What? How many new claims
did we have in 2023?
Oh, do you have that off the top of your head? If you yeah.
Off the top of my head, I I what I can do is I can get you
that number through the chair, if you don't mind.
Absolutely. No I I think it's important that we look at, you
know, modernizing this program. Uh it was something that no
1 else was doing the way we did. Um and to have some light
on there is really really important. The timing of the
claim acceptance has gone down um and that their savings
their proofs that we did the right thing. So I think
everything's on the right track. Let's get that total
number down, let's be safer at work too, right? I mean
that's that's part of this, right? We you know, we want to
if we take the time in the front end, we don't have these
these claims in all sorts of different areas of the city,
so thank you all. Thank you. Any other questions, uh,
seeing none, uh, 1 requests through the chair. I believe
that there was a reference to a third-party analysts, uh,
who would be doing some subsequent work? Uh, if through the
chair, if you could provide an anticipated scope of work
and then approximate timeline so that we can keep the
committee apprised that would be helpful. And before we go
to the last item, just want to, again acknowledge Alderman
wages back is great work on this issue. So thank you, um,
for helping Shepherd. This process over the last term.
Um, and control. I thank you for your time. I know you're
busy, uh, off to other things. So, um, with that, we will
go to the the next and final item on today's agenda, which
is a subject matter hearing regarding the office of
Inspector General's, quarterly report for Q2 of 2024 uh
General witzburg, if you could just quickly reintroduce
yourself and then proceed with your summary.
Absolutely. Thank you chairman. Uh, I'm Deborah witzburg.
I'm Inspector General for the city, um, and I will talk
about our, uh, our quarterly report our Municipal Code,
mandated quarterly report for the second quarter. And as I
get started, I, I want to reiterate something. I have said,
when I've been here to do this before, which is that I
sincerely appreciate the committee's invitation, each
quarter for the last number of quarters to to come before
you and to do exactly this to talk through our quarterly
report. I think that is a critically important opportunity
to amplify the work that the office is doing. And I just
want to reiterate my appreciation for the invitation to do
that. If we could just get the screen shared,
I'm very sorry that acknowledging. Vice mayor Bernett.
Thank you for joining.
It's okay, we're happy to have you.
Wonderful.
Thank you. Um, so I'll start with the overview. Our our
quarterly report was published on July 15th. This covers
the second quarter of the year, that is to say the quarter
that ran through June of this year. And at the beginning of
each quarterly report, there's a letter which kind of lays
out an overview of of the quarter um, that letter in this
report touched on the notion that a thread running through
much of the work reported for this quarter. Was that here
in city government, the rules do, or at least ought to
apply to everybody regardless of their titles.
City government, regardless of their relationships with city
city employees, and regardless of the amounts of contracts,
they may hold that. There is no, there are no City actors,
too big to be accountable.
Um, some of the work we we did in the quarter, which we'll
talk more about here. Had to do with investigations of high
ranking City officials and a large dollar contractor, and
we know the sentencing of a former Alder person, uh, in a
case related to an oig investigation, we also have a
A, a matter here that will look at which I highlight both
because of its importance. And because as we head into
budget season, we're very cognizant of finding those places
in city government, where there's wasteful spending where
we might recoup dollars, that that could be put to better
service, uh, in the interest of Chicagoans.
so um, a few kind of statistics on the quarter first from
the report, we've talked a bit before about our centralized
intake functions over the last couple of years, we have
centralized oig's intake function, to ensure that we are.
Kind of deploying the best oversight hammer for each nail
that comes through the door that where if an intake that we
receive is a misconduct complaint. We will look at that
through an investigative lens. If we receive something that
is a programmatic concern um or a suggestion about how City
operations might work better than we. Look at that through
an audit or an evaluation lens.
In the second quarter we received 4,948 intakes. That is a a
significant increase from the first quarter of the year
which was 2149 intakes? Um
I will say I I generally take Rising intake numbers to be a
a good sign. I generally take that to mean not that more is
going wrong in city government, but that more more
Chicagoans know who we are and what we do and where to find
us and that we are hearing more about the things that
matter to Chicago. And so I generally take that to be a
good, a good sign. Most of those intakes Come To Us by
email. We receive them through a variety of other
mechanisms as well, some by telephone online portal letter.
Um hard mail Etc. We had 239 self-initiated intakes. Oh IG
is specifically empowered by our ordinance to self initiate
intakes. This number is also significantly higher than it
has been in other quarters. That's a product of a number of
things including um some of the proactive data analysis
efforts that we've talked a bit about before around. Um PPP
loan fraud by city employees, as well as campaign Finance
oversight, which we'll we'll talk a bit more about
Oig's misconduct investigations. We have we had at the end
of at the close of the second quarter 201, active
misconduct investigations of which 96 had been open more
than 12 months, that is up from 92 the quarter before.
Uh the subjects of those investigations are are here um 156
investigations have as their subject, a city employee 18,
have City elected officials as as subjects 16 have
contractors subcontractors or persons seeking contractors
as subjects, 3 licenses to appointed officials uh and and 6
others including but not limited to people in entities
following into this. Other category would include, for
example, members of the public who have bribed a city
employee or official enforcement of the ethics ordinance,
as it applies to members of the public, is, is fairly new
enforcement territory for oig. That is not a type of Ethics
enforcement in which we've engaged historically, we have
taken that up in the last couple of years. Um, but the
notion that City Hall is not for sale and and we ought to
enforce all of the rules um to make that clear. And so
those are some of the cases which might fall into this
other category.
The municipal code, um, requires the publication of this
quarterly report and it lays out clearly what information
may be included about our misconduct investigations. Much
of our work is public facing. Um our misconduct
investigations however are are confidential by ordinance,
for many good reasons, including to protect. Um, those who
come forward with concerns and complaints about city
government. The municipal code says, we are to publish
deified summaries of sustained, misconduct, Alle
investigations. That is to say investigations, which reveal
sustained findings of misconduct.
And so, we've reported 13 sustain administrative
investigations in the second quarter. Uh and a selection of
them uh are are here. This is not not all of them but but a
but a few that I want to highlight, we sustained
allegations against a cdph employee, who defrauded, the cha
housing Choice, Voucher Program recommended discharge of
that employee which which cdph agreed to pursue
We investigated a high ranking, fire department, official,
who attended the inspection of a property that was owned,
uh, by a personal friend. And we found that while the fire
department, official did not actually take steps to
interfere with the outcome of the inspection, their
presence in an apparently, official capacity in their in
uniform bearing, Implements of their of their official
position gave the appearance, uh, of improper, preferential
treatment, undermining public confidence in government. Uh,
we recommended discipline and the official was reprimanded
by the fire department.
We looked at I mentioned high dollar high, high value, uh,
contract investigations, we investigated a Department of
Water Management contractor who had misrepresented their
status as a as a city-based business, whether a business is
based in the city confers, a bidding advantage in the
city's procurement process. And we found that this
contractor had misrepresented that status, that is to say
they represented themselves as a city based business, but
in fact were not,
And they use that misrepresentation to obtain a bidding
advantage on infrastructure. Contracts, collectively valued
at, more than dollars.
Um, we recommended the institution of debarment
proceedings, um, which are in process with the Department
of procurement services.
We sustained. Can you just explain briefly if approved what
disbarment would uh entail in the situation like this? A
number of different outcomes can come about through
dearment proceedings on, on the far end of the spectrum
total dearment would render a individual or an entity
ineligible for further for for contracts with the city. Um,
other penalties on the way to to that outcome can come out
of the debarment proceedings as well, for example. Um there
might be a, a period of suspension uh where a company might
be ineligible for City contracts.
Thank you. We sustained allegations against a former
high-ranking, police department official. Uh who failed to
cooperate with an oig investigation while they were still a
city employee. So that is to say they are no longer with
the department. They are now a former official but but
while employed by the police department in a high-ranking
position, failed to cooperate with an oig investigation.
Um,
We have in recent years taken, I think inappropriately and
necessarily aggressive approach to enforcing the duty to
cooperate with oig's work. We recommended that CPD refer
the former official for placement on the ineligible for
rehire list. CBD declined to do so,
Uh, we investigated a property owner who attempted to bribe
a department of building inspector. That's the kind of case
I mentioned, where we have investigated members of the
public for violating, the ethics ordinance, the board of
Ethics, uh, concurred with the, the finding of the
violation and pursuit of 5,000. Fine. And then finally
here, by way of selected cases,
um, when we, we talked about the notion that that there are
no City actors, too big to be accountable. We sustained
allegations of misconduct against a former deputy mayor and
a former high-ranking employee of the mayor's office, um,
who possessed and drank alcohol, and City time um 1 of
those. The the high-ranking employee uh, we were told had,
gone out during the workday consumed alcohol. Come back to
to work and was heard to say that they were too drunk to do
interviews, um, of mayoral fellows, and nonetheless
proceeded to conduct those interviews with my oral fellows.
Um, both of those city employees were off the books. They
were no longer city employees by the time, we concluded our
investigation, we recommended that they both be placed on
the ineligible for rehire list and the mayor's office
referred them accordingly for placement on that list.
uh, by way of updates on investigations that have been
reported in previous quarters,
I mentioned that former Alder person, Ed Burke was
sentenced to 2 years in prison and 2 million dollars in
fines on charges of racketeering and bribery. Uh in a case
related to an oig investigation and we report on the filing
of a verified complaint against a city contractor named
here because there is a public action. There's a, a
publicly filed complaint for obstruction of an oig
investigation and false statements to the city.
Um, I mentioned this to campaign Finance oversight. So
there are a couple of avenues in which we are pursuing,
proactive data analysis, sort of for lead generation in our
our investigative work. So that in addition to our reactive
work, when we receive complaints or allegations of
misconduct, we are positioned to proactively identify a
potential misconduct by City actors. We've talked about our
work in that vein with PPP loans before here. I just want
to note that we are doing work like that as well. In the
campaign, Finance oversight realm, the ethics ordinance. As
you all know, uh, lays out requirements for um, who and in
what amount contributions can be made to the political
campaigns of City officials. Um, and we have we have built
data analysis tools, which allow for the proactive
identification of potentially uh prohibited contributions.
To generate leads which we then investigate. Um, so in the
second quarter, we reported on an improper contribution to
an elected official by an entity doing business with the
Chicago Board of Education. That is 1 of the categories
into which a contributor might fall, which would restrict
the amount. They are allowed to contribute. So we found
that excess funds had been contributed and, and they were
returned. The ethics ordinance sets up a cure process by
which we notify the elected official who received an
improper contribution and the contributor, um, and pursuant
to the ethics ordinance, that violation may be cured by The
Return of the entire contribution. If the entire
contribution was prohibited or any excess amount, the
excess funds, here were returned,
Um, our Public Safety section.
In the second quarter published a follow-up inquiry on
cpd's preparedness for Mass Gatherings. So I was before you
all to to to talk a bit more about this reporting detail
leading up to the DNC. This was an update of sorts on areas
of concern, that we identified in a review of the city's
response to the protests and unrest that followed the
murder of George Floyd in 2020. Um we looked at areas of
concern that we had identified, we found some areas of of
significant Improvement, some areas of ongoing concern. Um,
and I think now with the DNC behind us, uh, it is I I will
just note here that the, um, we we sort of meant, what we
said here in the title of this report, which is that it
was, we looked at preparedness for Mass Gatherings
generally and not just the DNC specifically and so, uh,
there certainly are implications
Beyond that event um for both for improvements, very
substantial and and genuine improvements that were made and
preparedness as well as opportunities for continued
Improvement.
Uh, our Public Safety section is charged by the municipal
code with the review of closed. Disciplinary cases, that is
to say, when the Bureau of internal affairs and Coppa close
a disciplinary investigation. It is reviewed by our Public
Safety section, um, on a case-by-case basis. Uh, we conduct
those reviews for 2 purposes. Pursuant to the code, 1 is to
make recommendations to inform and improve future
misconduct investigations. The other is to recommend the
reopening of Investigations which we find to have
deficiencies materially affecting their outcome. So this is
not a Monday morning quarterbacking exercise. This is not a
question of whether we would have done it differently. This
is a legal assessment of of investigative quality and
sufficiency
so in the second quarter, we we screened 386 closed,
disciplinary cases. We conducted an in-depth review of 25
of them during the quarter, we found 3 Copa. Investigations
and 3 Bureau of internal affairs investigations that
contained deficiencies which we determined to materially
affect their outcome. Um similarly here. I I want to
Briefly summarize a selection of reportable cases. I will
note
Reportable cases, do not necessarily appear in the same
quarter, where the recommendation is made. That's why the
numbers don't necessarily match up exactly. We report the
cases publicly after they have kind of come to a final
procedural resting place.
Um so as to not compromise the the Integrity of the process
so selected cases that we reported on in the second
quarter. Um the ones I've noted here, all share a theme
which is which has to do with the closure of cases at coupa
in what Coppa has called its Timeless and initiative. This
is a program set up by Coppa to administratively closed
certain disciplinary investigations in order to reduce in
investigate a backlog of of misconduct investigations
Um, so in the first of these, here Copa received
allegations, that members of the police department,
executed a search warrant at the wrong home. This is
certainly an issue which has has been much in in public
view since the execution of a search warrant at the home of
Internet Young.
Um a CPD member in this particular case was heard to say on
the scene that this was not the first time and probably
would not be the last time that a search warrant was
executed at the wrong home Copa. Closed this case
administratively in its timeliness initiative. Despite the
fact that the kind of program requirements, the program
rules of that timeliness initiative.
Make um allegations regarding search warrant procurement, or
or execution disqualifying. That is to say that copas
policies on the program say that they will not use it to
close administratively cases involving these allegations.
Um, on that basis, we recommended the reopening of this
investigation and Coppa declined,
Similarly, the second of these cases Copa received
allegations that CPD members used excessive force against
an arrestee better. SD sustained in sustained injuries,
requiring surgery, uh, and settled, a a legal claim with
the city for 50,000 dollars Copa closed. That case
administratively in its timeliness initiative as well.
Despite the fact that another disqualifying category of
allegations uh is improper use of force resulting in
injury. We recommended that that case be reopened and Coppa
declined. In addition to these 2 we report here in the
second quarter on 3 edition Copa cases which were in a
similar posture, which, which involved allegations, which
we determined to be disqualified, foreclosure in the
timeliness initiative. Um, Copa decline to reopen each of
them
I want to talk in a little bit more detail about about 1
other review of a closed, disciplinary case. This is also a
matter that has that has been before the council and I hope
will be before the council again, having to do with the
handling of allegations of extremism against members of the
police department.
Um, summarized in this quarterly report is the review. We
conducted of a bureau of internal affairs, investigation
into allegations that 8 CBD members belong to the
oathkeepers.
um, evidence collected by bia, showed associations between
each of the accused members and the oathkeepers, and 3
admitted to having been members of the oathkeepers at
sometime in the past.
We found 3 material deficiencies in in Baez investigation
that, uh, Council for the subject interfered, uh, during
their interviews with Bia in violation of the applicable
rules and the consent decree, we found that in 1 with
respect to 1 subject, a Bia investigator identified a need
for an additional interview, but failed to conduct that
interview and then finally we found that Baez analysis
rested, at least in part on the conclusion. That membership
in organizations in itself is not a rule of violation.
That analysis is contrary to the plain language of cpd's
rules uh and it is contradicted by both cpd's recent
practice where where these rules that issue have been used
to separate a member for association with the street gang
and at odds with cpd's historical practice where the rule
at issue rule 2 of the rules of conduct.
Um, was used to separate members for associating with the
Ku Klux Klan in 1968.
Um, our general analysis is that if that rule was good
enough for the clan in 1968, it is good enough for the
oathkeepers today, Bia declined to reopen this
investigation. I want to just highlight in terms of, of a
related matter, 1 thing, which, which has been, which we
have published, but was not published in this quarter and
that's why it's not reflected in the quarterly report just
by way of kind of a, a look ahead because the topic is
related. We also issued an advisory to the mayor's office
regarding, uh, CPD member affiliation with anti-government
and extremist groups.
And in that product, we identify we we sort of
survey the history of uh allegations of extremism within
the Chicago Police Department and in law enforcement
Nationwide. Um, we look at the way, the Bureau of internal
affairs has handled these investigations in recent years
and in recognition of the scale and the significance of the
problem, where
Community Trust in the police department is of such
tremendous concern. We recommended that the mayor's office
convene, a task force of stakeholders, um, to design, and
Implement a whole of government approach to detecting, and
eliminating extremism in law enforcement. Um, we, we, we
discuss in this advisory things that efforts that are being
undertaken in other cities and other law enforcement
agencies. Um, none of those may be perfect Solutions. There
are
Solutions, being implemented or being tried in other places.
Um, CPD has, I think the city that is to say, the city has
sort of fallen behind the, the national Pace in in
addressing this issue. Um, so we recommended that the
mayor's office convene a task force, to build a whole of
government approach. The mayor's office declined to adopt
that recommendation. And in fact declined to commit to any
specific action.
Uh we report in the in the quarterly on audits follow-ups
advisories and notifications that is to say other oversight
efforts outside of our investigative work. Um so I'll just
note a few of those here. I'd be happy to talk more about
any 1 of them that is of particular interest. The first is
1 that that we've been before the committee on, that was a
follow-up to our audit, on the department of buildings.
Permit, inspection process, we sent a notification to cdph
on their recusal policy. Um, this had to do with aligning
guidance for, um, inspectors who are out in the field on
when they could accept gifts,
um,
Or I'm sorry when they when they needed to recuse
themselves from an inspection apologies, uh we sent a
notification to the Department of Finance regarding
simultaneous wage and Duty, disability payments. So this is
sort of in the category of wasteful spending. We received
some complaints and and found some instances in which city
employees were simultaneously. Receiving a paycheck and a
duty disability check. Um,
We talked, uh, a few minutes ago with the Department of
Finance about the fact that misconduct is often co-located
by a failure in controls. Um,
I, I also I think it is. It may also be true that a failure
of internal controls can obscure or, or make difficult to
identify or prove up misconduct. These are situations where
we did not sustain misconduct allegations. We did not find
that rules had been broken here.
That's either an indication of Goodwill or it's a failure
of the rules. But in any event, what we did find was that
there were a breakdown in information. Sharing among the
parties involved in, in management of Duty, disability,
payments, and a lack of clear procedures to detect exactly
this problem, where 2 checks were being cut to the same
person out of sort of 2, different pockets in city
government, um,
So we issue this notification to the Department of Finance.
The Department of Finance committed to various corrective
actions including improved training and, and communication.
This is, this is a left hand right hand problem, almost
literally, um, which is resulting in, in wasting City
dollars.
We sent a notification to the city clerk and to the the
animal care and control regarding data sharing and a shared
access to dog registration data.
We sent a notification to CPD regarding the documentation
and tracking of seized Vehicles. This arose from a concern
about
a vehicle being seized by CPD sort of temporarily in a in a
way that was not appropriately, documented or tracked, that
leaves the city open to all sorts of liability. If
something goes wrong with a, with a vehicle while it is,
Kind of off the books, in possession of the department,
their liability concerns there. They're also accountability
problems around around how we know where a piece of
property, like a vehicle, might be
Um, finally, and perhaps a particular practical utility,
uh, here is that we send a notification to the board of
Ethics regarding the use of non City, email addresses by
city council members, and their staff. We recommended that
the board of Ethics clarify, its training for council
members and employees. Um, that City email should be used
for City business. For purposes of local records, act
compliance, and transparency and accountability and so on.
Uh and then finally, I will just note that we continue to
do the ongoing work of monitoring, the city's employment
actions following this. The finding that the city was in
substantial compliance with the court order. That was
entered in the shackman, litigation the remaining work of
ensuring that those rules continue to be followed came to
rest within oig. It's in our Compliance Unit within our
legal section. That is that is continuous ongoing
monitoring work.
Which includes but not is not limited to the the efforts
listed here where we we have reviewed contracts entered
into under the contractor policy, we review senior manager
hires, we both audit and monitor hiring sequences across
City departments. Um, and where we find irregularities or
violations of the city's employment plan, we make
notifications and and recommend corrective actions as
appropriate.
So with that chairman, I'm happy to take any questions.
Thank you, I have, uh, 2 lines of questions, myself 1 with
regard to the higher ranking, CPD official, who declined to
cooperate when that individual was a member of the police
department was any, uh, uh, explanation given from the
police department in terms of why they would not pursue,
uh, placement on the do not hire list.
Um there was uh and uh the response from the police
department, reflected The View that that would be sort of a
an overly harsh step. Um
and I believe the response also noted that that subject was
not interviewed about their failure to submit to an
interview.
Okay. Um, next question about the task force recommendation
if uh you can explain approximately when that request was
made. Um and any indication or explanation as to why that
recommendation wasn't accepted.
Uh, yes. So uh, we issued that recommendation, um, I believe
in April, I can get the exact date. It is on our website.
So both our recommendation, and our response is on our
website. It was published, uh, in July, I believe it was
July 9th, so just after the close of this quarter, that's
why it's not reflected in the quarterly report, um, but it
is on our website, we published it on July 9th, the
response from the mayor's office continues to do. In my
view what the mayor's office has done on this issue, which
is to say the right thing, which is to articulate a
commitment to addressing the issue of extremism and law
enforcement.
The time has passed during which saying the right thing
might be enough here. And and my concern about that
response is not that it fails to say the right thing, but
that it fails to commit to any concrete action are Beyond
what's in. Your your Communications, is there any
indication of what steps if any are being taken? Whether
it's the mayor's office any other department, including
City Council,
I'm not aware of any steps that have been taken.
Okay, well, understanding that, it sounds like most or all
that documentation is public, if you can still share it
through the chair. Absolutely. Um, we, we'll share it with
committee members and discuss some potential next steps on
our end. Absolutely. Thank you. Uh, questions from other
committee members someday have ascus and then Alderman
Lawson. Yeah. Uh thank you chairman. Um
Uh, thank you so much. Inspector whisper for as always,
really giving a wealth of information. It's all the work
that you're doing. Um,
I guess 1 is kind of a process so you're letting us know
about um let's say employees who are not former employees.
Um you mentioned, kind of a deputy mayor um just for for
reference when you're reporting like
this quarter is it somebody who the investigation wrapped
up and they might have been a prior Administration or is
this something where I don't have a sense of how long the
investigations are to know, if that's somebody who is
currently in this Administration or 1 before it
uh, the investigations take longer than anyone wishes they
did, is they the short answer um and and I want to sort of
steer clear about specific identifying information of
subjects, but I will say that, um,
We report an investigation in a quarterly after we have
concluded the investigation and after our recommendation
and Report has gone to the affected department and after
they have responded. So not only is there the time that the
investigation takes but then departments have at least 30
days extendable to 60 days to respond. And again, only
after that has kind of reached its final procedural resting
place, do we report it publicly? Um, and with respect to
that particular investigation, those employees were already
former employees by the time, the investigation concluded
and that explains why our recommendation was simply for
their referral for placement on the ineligible for rehire
list. Got it. Thank you. The reason why I asked that is
kind of different administrations have different protocols.
So less about
Who's in the seat and more about how they operate, right? So
if we're seeing that, there's things that could be
improved, is it something that the answer might be? Well,
that isn't us that ran the protocol, right? So I think I
understand the need for, you know, protecting people's
identities and such kind of needed for clarity there. Yeah.
I I think that's a good question.
I frankly think that um the kind of recommendations which
are more susceptible to that sort of response are are
program and policy recommendations where we're talking
about efficiency and Effectiveness and um in every mineral
transition I think there's some amount of understandable
conversation about the fact that
If, if what we are doing, boils down to asking 1
Administration to answer for the decisions of of a of a
different 1. That's a that's a hard position to be in when
it comes to misconduct investigations. This the rules are
the rules um and in that particular case, for example the
city's drug and alcohol policy was no different under the
last Administration than this 1 know and I appreciate it
obviously for something like that. It's Crystal Clear uh so
much so that it's mind-boggling that that was even a thing
that occurred in government. So uh thank you for that, I
think.
Um, chairman Martin kind of asked a lot of the questions, I
had related to the city's response when it came to
oathkeepers. I mean, there's something we've been raising
up time and time again from last term of this term. Uh,
it's ex absolutely unacceptable to have members of the
police department, who might be part of extremist groups.
And the fact that it's such a
Challenge to get people to do. What's clearly the right
thing in a situation like this is just really
disappointing. So I know you mentioned that the response is
on the portal is that the direct response that you received
from them or your interpretation or sharing, what they
responded, the former we we published the mayor's office
response as we received it. Okay. I I appreciate that
because I think there's a number of us myself. Alteristic
Joe Lopez who've been raising this issue up, as far as the
old Keepers, you know, we had 1 of the officers that was in
the 40th. Ward is related to some of these investigations
that
I guess you our work will also continue to make sure there
is some level of accountability here because people do lose
faith in the institutions when we don't clean out, uh, the
kind of cancers that shouldn't be there in the first place.
So, uh, thank you for your information and thank you,
chairman. I, if I could just respond very quickly, I will
say all of us because I I agree. We cannot ask people to
trust a police department which allows its members to to
dabble in extremism. Um, a year or so ago, held a hearing
in his committee on some of these issues and I I will say I
thought that was a very productive and important exercise.
exercise. Um, in terms of asking actors and city government
to, to sort of answer for their um, their responses on this
this issue. I I would welcome further legislative oversight
on this issue. I thought that was an important and valuable
exercise. Thank you, General. Uh, Alderman Lawson and then
Alderman, tally Farrell
Thank you, Mr. Chair. Um, I'll just Echo that. If Richard J
Daly, can deal with the clan in the 60s. We should be able
to deal with extremism here. Uh here. And now uh I think
that's pretty uh, disappointing to hear that. That nothing
has happened and, and maybe we need to look at what we can
do. As a city council, um, if uh, if we need our own task
force to look at this, uh, because it seems that that we
all
We all know this is something that needs to be taken care
of. Um, a couple other things. I just wanted to mention
real quick so I have taken every training you can think of
of in the last couple weeks, um, and nowhere, does it
mention being fit for work? Um, when it comes to being of
sober, mind and body, perhaps, and, um, maybe we just need
to add that. Um, you know, it's the 1 question, it's the 1
T, it should be a no-brainer. As my colleague said,
however, for all of the things that I think are covered
may. Maybe the maybe that's to pass on to Steve Berlin, but
but, um, it's certainly embarrassing to see that in any
ranks. If it was my office, if it's the mayor's office if
it's your office. So um, something that we have to hold
ourselves to a higher standard to certainly. Um, I'm a
little concerned about the timeliness initiative from kopa
because it seems like it's an excuse to just have cases, go
away. I'm going to assume these are not the most serious of
violators but maybe I shouldn't. Because if you're looking
at them again, they they're they're serious enough that,
um, you know, they've been sustained in a certain level
that they require examination
Maybe just to speak to this initiative, is this something
we should be talking to Coppa about with this office or
with uh, our Public Safety police and fire committees?
I appreciate the question. Um we will have more to say
about the timeliness initiative from an oversight
perspective because I agree with you, it certainly has some
concerning features in terms of how it might be used,
what's impact might be um,
The notion that these are not the most serious offenders or
not. The most serious cases is, is the principle that
should be served by certain categories, of cases, being
ineligible foreclosure, under this program. Um, so when we
talk about the fact that the the policy principles
identify, these certain categories of cases, as ineligible,
that's the purpose that should serve, right? Where we say,
we're not going to use this program to close cases of, you
know, where there's alleged improper, uh, use of force
resulting in injuries or sexual misconduct, or search
warrant execution. Gone wrong Etc. That's exactly why we
highlight this problem in these case reviews because if we
are, if the program is not being sort of held to to that,
Standard in a rigorous way. Then then we might have very
serious cases that are, that are sort of Falling by the
wayside and then in terms of of serious offenders or repeat
violators of the rules, um,
if cases are being improperly closed short of an
investigative finding then people who receive repeated
successive allegations are never going to build the kind of
disciplinary history, which would permit Progressive
discipline and which would feed the sort of risk analysis
that's mandated for example, by the consent decree in the
risk intervention program.
Right now that's that's helpful to know. Um I'll just make
make 1 of the question you mentioned. Um the work has done,
done, your work is controlled by ordinance. We've had a lot
of discussion about what is an exit executive order and how
that can be or not being enforced by the city. I'm assuming
you guys have no control over executive orders as well.
Uh, correct, right. Thank you. Thank you Mr. Chairman
Thank you Alderman. Tia Farrell.
Good. Thank you.
Um, I just, I just wanted to follow up on.
A comment to a question that was asked by my colleague uh
with regard to our police engagement and involvement, um,
in extremist organizational. What's What's um assumed to be
extremely this organization? Um, are you running into any
constitutional issues with regard to their being able to
join that? Or um, does public policy outweigh once
constitutional rights under those circumstances?
That is sort of the critical animating question not just in
Chicago but across the country in efforts to combat
extremism. In law enforcement is how we do that effectively
while appropriately respecting the First Amendment rights
of, of public employees. What I will say, um, is that
those are that is a question that is being reckoned with in
in other cities and at the federal level, um, and that the
city of Chicago has not kept pace with those efforts being
undertaken in other places to to to address this issue even
in a way which is appropriately. Respectful of First
Amendment rights and I'll I'll highlight a couple of
things.
1 is that some of the efforts being undertaken, in other
cities by other departments are in areas like, uh, hiring
processes like approach. What what kind of screening can
and should be done at the interview phase, uh, training for
supervisors, how people should detect and identify what
behavior is is over a line. Um,
So that that's sort of there are there are those efforts
out there which other cities have implemented with some
amount of success, which is no guarantee that they survived
every constitutional challenge. But I do think it suggests
that there are some wheels that are being invented in some
places. The other thing I will say that we highlight in The
Advisory that I think is important just in terms of kind of
perspective setting um, in 2021, uh, the the major City
Chiefs Association which is an international uh, sort of
trade group of police Executives. As, you know, issued a
statement on extremism and law enforcement which
Directly addressed. This question of how we hold Law
Enforcement Officers? Accountable for association with
extremist groups while appropriately, respecting First
Amendment rights. Um, major City Chiefs issued a very clear
statement on the principle that those entrusted in
positions of public service should be held to appropriate
standards, including in the groups and principles with
which they associate.
Um, there were
Uh, more than 4, dozen signatories to that public statement
from major City Chiefs, the Chicago Police Department, is a
member of the major City Chiefs, but was not among the 4
dozen departments which signed on to that statement.
Can you send that to us through the chair? My apologies
for, uh, the interruption that is in the advisory.
Absolutely, I will send that as well. Thank you. So have
you made recommendations to either the ccpsa or the police
department to
Uh, at least begin the process of considering policy.
That really was the spirit of this advisory to the mayor's
office and and this is a good and important question.
Because we make this recommendation to the mayor's office
and not to the police department. We've made many
successive recommendations as, you know, to the police
department on individual disciplinary investigations,
Are sending this recommendation to the mayor's office was a
recognition of the fact that this is not a problem, which
should be left to CPD to solve on its own. But because
there are implications in budgeting and hiring and training
Etc, a a meaningful whole of government solution would
necessarily include
the department of human resources and the Office of Public
Safety Administration, and Coppa, and any number of other
stakeholders within and without city government
Thank you. Bye.
Thank you. Any other questions?
Seeing none and there being no further business before this
committee. Well, first of all, uh, thank you General as
always uh for your insights. Um uh, can I get a motion to
adjourn?
Alderman Vasquez, so moves all those in favor signify by
saying, I all those opposed say no in the opinion of the
chair, the eyes have it. The meeting is adjourned. Thank
you, thank you.