Good morning and welcome to the Greatest Show on Earth,
uh, midyear budget hearings.
We begin, uh, we will, uh, begin with public comment.
Our first public commenter is, uh, Mr. George Blakemore. Mr.
Blakemore, you may proceed.
Thank you, sir.
On the news this morning, I heard
not through the greatvine
that they was having a budget hearing.
And the city have so many millions, millions
of dollars in the hole.
Where are the people You deserve the government.
You get, look at 'em. Still talking. Look at 'em.
And the bill and the bill.
Somebody from the public is speaking. Have some respect.
And you, sir, chairman, you supposed to hit on the speaker.
You supposed to control these ultimate behavior.
This is out of control.
Millions and millions of dollars in debt.
Whether do they spend this money?
How do they spend this money?
And why do they spend this money on illegals?
And I advocated for Trump to come to this city
and clean up this democratic
swung all my life.
I was a Democrat. No check in balance here.
No check in balance.
Trump come and clean up the swamp.
So I went red, then
I'm flipping black.
You see that altar lady right over here? No control.
You supposed to tell her to be seated.
Why don't you tell her?
We, we hearing from the public, you are supposed miss.
You supposed to serve the public. You're too arrogant.
All of you, all of you. Sit down.
Oh, she's, she's not listening to me. She's ignoring me.
And this is why Trump should come and clean up the swamp.
They're all democratic. He's coming here.
This is out of control. I went red. I put up red.
But I'm going black.
I know Trump is racist in the Republican party is racist in
the Democratic party.
Why did you go flip red and go red for revenge?
Revenge. I don't care about revenge, says the Lord.
Revenge to get even with all these Democrats.
And look over here in the budget, all little white
and one or two black.
But you got a black mayor.
You got black monds,
black people in high places selling us out.
Out. You voted for. You voted for sanctuary.
You got,
Thank you, Mr. Blakemore.
Uh, next we have our
next and final speaker is Mr.
Taiwan Sims.
Mr. Sims,
you may proceed.
Um, so we got in the news right now,
everybody speaking for Black Americans
in the state of black America.
You should be out there saying, Hey, we need the, um,
national guard, especially for how your ward is going.
Mr. Irvin. However we going, Mr.
Bill Ward, while I was shot at, this is blood.
This is a gunshot wound that I took to my stomach.
JG 59 615 1.
Still can't get the, um, foer
still stonewall surf for the foyer.
But I was shot right here. This is the reality.
This is our reality.
And the abdomen is usually where you bleed out.
So by the grace of God,
am I standing in here giving this testimony?
But wait, we should have good government.
We should have good policing.
However, I was arrested also at 1 21 North LaSalle.
Case number 2 5 1 2 0 4 5 8 3 0 1.
I was arrested, what is that, April 16th? Yes. April 16th.
As I came down here to try to appeal to the city government,
which is a violation of my constitutional liberty.
But Jason Irvin knows about violating constitutional new
liberties because in November he treated me the same way.
But not only after that June 3rd,
I was also arrested by mom.
Where you at? Right?
But this is the mayor's contingency of police. 150 of them.
But hey, Chicago's okay, when you have to move
with 150 armed individuals, that tells me something.
That tells me that we're not in a good space and place,
but as y'all continue on with whatever,
whatever this is that y'all want.
But let's speak about the next case.
So the event number is JJ 2 7 9 6 6 7 on
June 3rd, where I was then arrested
after completing all the conditions of not coming down here
to appeal further dealing
with the issue that I'm still dealing with.
Homelessness, dealing with the fact that I'm being attacked,
dealing with a pattern of abuse.
And it's from the city government,
and it's from the maniac on the fifth floor.
The narcissist who wanna put his, his name in stars
or fireworks attribute to who?
Incompetence, attribute to what? Criminality.
So y'all can make fun. The greatest show of all.
And you the clown of them all.
Because when this budget come,
you better know we gonna be sitting here front
and center, paying so much attention.
So you can make jokes.
But the state of black Americans in this city is not a joke.
It's a detriment. And it shows the lack
and it shows the incompetence, Mr.
Funny man. So let us all be laughing.
Let us all be jovial and smiling and happen.
'cause that's what the liberals do. They march through.
Hey, market. They ain't come down to nowhere.
They ain't come to Inglewood.
They didn't come to South Shore Inc.
Thank you for your comments. Alright, um, again,
welcome to our, uh, midyear budget conversation.
Um, as you all know, pursuant to an ordinance we passed
during the 2025 budget process, uh, the department
and, uh, budget management produced a midyear budget report.
Out of that midyear budget report,
we also slated a set of hearings.
I, our hearings will be for today, tomorrow,
and Thursday, followed by next Tuesday,
Wednesday, and Thursday.
Uh, the schedule and the, uh,
midyear report should be on everyone's desk.
Uh, as I sent out a committee sent out previous to, uh,
to the hearings last week.
Uh, just wanted to get a sense of, of, of questions
or anything that we were anticipated to have.
Uh, I want to thank those who did participate.
And I also, uh, in
that conversation talked about the order in which we would
go, uh, with that.
Um, also, uh, we will take a break, uh, um,
probably after we finish, uh, whichever comes earlier, uh,
one o'clock or finishing with, um, uh, finishing
with the first three, um, budget, uh, comptrolling, CFO, uh,
will take a, take a short break, uh,
for lunch and then come back.
The goal is to, um, be finished,
uh, late afternoon.
We are not going to, um, hold anything up,
but we want to try to move through.
So we're gonna have a five minute clock this time around.
Um, we will, uh, be very succinct
and hopefully get the, uh, questions, uh, answered.
And again, if you still have not filled out the form,
we definitely would appreciate that so we can, uh, move
as expeditiously as possible, uh, in this conversation.
So, uh, with that being said, uh, let me,
uh, quickly take a role.
I know we have, um, uh, Irvin's present.
Lee's present, ADA Dow, Yancy Harris,
bill Quinn, Lopez Moore, osha,
Scott Rodriguez Sanchez, Nugent,
Vasquez, and Martin.
Did I miss anybody?
I didn't. What did I call you? Oh, okay.
Uh, I did, I I didn't call you al the person. Did I?
I know, I know that. I know you take offense to that, uh,
alderman Spto, Mr. Mann.
Okay. Cardona Also had, uh,
alderman Fu Alder person Fuentes
as a non-member that's in today.
Uh, anybody else? Did I miss anybody? I got you. Okay.
Alright. We have any, uh, any
Virtual people,
Uh, entertain a motion to allow the virtual participation
for Alderman Lamar Robinson.
Is there a motion? So, move by. Uh, you can't move.
Uh, is there another So moved by, uh, chairman Dow.
All in favor saying aye. Any opposed? Any chairs?
Ayes have it. And Alderman Robinson will be admitted.
Also, we have, uh, alderman Cazada have you down
as well as in the past.
This, uh, we will, uh, take the, take the meeting,
and then at the end of each day, uh, recess into the, um,
to the following day.
So, uh, this will be less like budget hearings,
one continuous meeting that will go over the,
uh, six day period.
So, uh, we will start with, uh,
openers from our departments, uh, the CFO, the,
the budget director, and the comptroller.
So as they come in
and take their seats, we will, uh, begin momentarily.
Welcome for, uh, mid years.
Uh, this is our first of, uh,
first day for the rest of your life.
Come on up. Uh, what order, what order we gonna proceed in?
Okay, director, uh, Guzman will go first, followed by, uh,
CFO Jaworski, then followed by Comptroller Belski.
Thank you for having more room up here.
Adding an extra table.
See, appreciate that you felt
for us being squeezed all together. Yeah.
You Guys are good. Cadillac,
we appreciate your generosity.
We also recognize all the Riley
for the purposes of quorum.
I
Ready?
Okay. Director, you may proceed.
Honorable Chairman Irvin, vice Chair Lee
and members of City Council.
Thank you for the opportunity to come before you today.
I like to begin with two sets of positive
but prudent highlights from our fiscal tracking this year.
First, our 2025 midyear budget report reveals
several encouraging trends.
Year to date, revenues are up 4.9% through May.
A reflection of strong collections
and performance across various revenue streams,
including elevated transaction taxes
and internal service reimbursements,
improved utility tax performance,
and a favorable pace in income tax collections, all helping
to boost, bolster our financial posture
through the fiscal year.
Building on that, our July, 2025 monthly revenue report
shows continued strength in revenue performance.
Through July, the city collected $2.6 billion,
exceeding the 2.4 billion budgeted
by approximately $127.5 million
or 5.2% above expectations.
Among our most robust sectors,
transaction taxes are outperforming projections led
by the personal property lease tax, as well
as increases in each of the five taxes increased
by city council as part of the 2025 budget.
And utility taxes are outperforming projections driven
by natural ca gas usage and higher rates.
These gains have helped offset ongoing declines in the
personal property replacement tax, which is collected
by the state on business income statewide.
PPRT revenues are down nearly $1 billion
with Chicago share down 37%, a loss
of approximately $38 million through May.
While year to date revenue performance has been strong,
these figures must be viewed alongside the broader
fiscal ch landscape.
Our 2026 budget forecast released late last month paints a
sobering and immediate picture.
Despite reductions in spending, such
as the decrease in $39 million year over year in contractual
services, a 6.4 million decrease in commodities
and materials on the corporate fund.
The city is on track to close 2025
with $146 million deficit driven largely by the uncertainty
around the CPS pension reimbursements,
which the CFO will go into more detail about.
While there remain shifting federal priorities
that could impact funding
for vital public health and community services.
Under the leadership of the Mayor
and Corporate Corporation Council,
and in collaboration with our state
and city partners across the country,
we have worked diligently to safeguard the majority
of critical federal resources that come to the city.
These efforts have helped ensure that Chicagoans continue
to receive the support they need,
and that our partner institutions remain strong.
In light of these pressures, revenue, revenue,
strength on one hand, structural challenges on the other,
we have taken decisive
and forward-looking actions this year since February,
OBM has provided bi-monthly financial briefings
to ensure members of city council remain informed
of the city's fiscal condition in real time.
In addition, we have held monthly caucus meetings
to discuss options for addressing the
city's structural imbalance.
These engagements combined with our monthly, quarterly
and biannual public reporting reflect our commitment
to transparency and our consistent effort
to keep city council fully informed
throughout the budget process.
Under executive order 20 25, 1 Mayor Johnson convened a
cross sector working group to examine the structural reforms
and efficiencies with the preliminary report scheduled
for release this month,
I wanna thank chairs Irvin Dowell Rodriguez Hall
and Aldermore for their valuable perspective that they
provided through the legislative advisory group, helping
to ensure the working group's recommendations are grounded
in the practical realities
of municipal revenues and expenditures.
Also, under executive order 20 25 1,
mayor Johnson directed my office
to conduct a thorough operational review
of the city's programs and services to identify efficiencies
and revenue opportunities.
In line with that mandate, OBM undertook an extensive
data-driven assessment across key departments,
including public safety to uncover un actionable savings
and revenue strategies,
or we anticipate sharing preliminary recommendations soon,
following final internal departmental consultations.
And finally, we launched a targeted audit of the Office
of Public Safety Administration's Medical Unit
to assess operational efficiency, resource allocation,
and fiscal impact in this essential service area.
This audit is nearing completion,
and we look forward to sharing findings with the mayor
and city council soon.
But the goal is clear, improve service delivery,
and expedite the return of our distinguished police
and fire department members to active duty.
In conclusion, the mid-year
and July revenue reports demonstrate
that we are exceeding budget expectations
for locally controlled revenues, even
as state controlled revenues continue to trend downward.
Yet our 2026 forecast makes clear
that we face urgent structural challenges, challenges
that must be faced together
and through collaboration with community and the executive
and legislative branches.
That is why the launch of our working group,
the broad base revenue, broad based review of our budget
and the OPSA audit, demonstrate
that we are not standing still.
We are taking concrete proactive steps.
This committee's leadership
and support will be critical as we move forward.
Together, we translate these initiatives into a balanced,
sustainable budget for 2026
that upholds our city's promise and stability.
Thank you. And I'll take questions following my
colleagues' opening statements.
Thank you, director. Uh, next we'll have, uh,
CFO Jaworski.
Thank you. Uh, good morning, chairman Irvin, vice Chair Lee,
uh, members of the city council and the public.
My name is Jill Jaworski.
I am the CFO for the City of Chicago.
I'm honored to be with you here today
and to provide an update on certain pension
and debt developments from the first half of 2025.
I would like to start off with two key accomplishments
that the city completed in the first half of 2025.
First, in January, the city made its advanced pension
contribution to the four pension funds totaling
$272 million.
Uh, second, in June of 2025,
the city issued the first tranche of our housing
and economic development bonds.
And the tracks transaction was received well by investors.
A key pillar of the budget for 2025 is fiscal stability.
And one of the biggest challenges
to achieving fiscal bounds is the pressure caused
by the city's obligations to our pension systems.
City Council is aware of these challenges,
but it is important to restate certain key points.
Since 2022,
the city has made actuarily determined employer
contributions to all four pension funds funds.
Prior to 2022,
the city was making contributions based on a
legislatively defined ramp.
Today, the city's contributions are calculated
by the funds actuaries at an amount that would get the funds
to 90% funded.
In approximately 30 years in May,
the state passed legislation which aligned the salary cap
for the calculation of benefits for the policeman's annuity
and benefit fund and the Fireman's Annuity and Benefit fund.
With downstate and suburban systems,
this increases pension benefits immediately.
While the legislation is an unfunded mandate,
it does solve the tier two social security safe harbor
issue for police and fire.
Until the 2040s, the increased salary cap
and pension benefits will add more than $11.6 billion
to the city's $36.5 billion in existing net pension
liabilities while driving down funded ratios in the police
and firefighters pension funds to 18%
from about 25% at the end of fiscal 24.
Annual pension contributions will grow
by $60 million starting in fiscal 2027,
but will balloon over time reaching an estimated 750 million
by 2055.
In total, we estimate the legislation will require
$6.6 billion in additional contributions over the plan's 30
year funding horizon.
I also wanna provide an update
regarding the municipal employee's annuity and benefit fund.
We think it's essential that City Council is equipped
with the full facts surrounding the administration's efforts
to secure reimbursement for CP S's portion
of the ME A BF employer contribution.
The ME A BF is a city pension fund.
It has approximately 14,209 city employees as members.
The ME A BF also contains non-teacher employees at CPS
numbering approximately 24,385.
It is the only fund of its type in Illinois that is paid for
by a city, but contain, contains school district employees
city membership in M-E-A-B-F has remained steady over time,
but CPS has steadily increased the number
of their employees in M-E-A-B-F
with CPS employees now making up 63% of M-E-A-B-F members.
The proportion of CPS employees
to city employees in the fund has risen
materially since 2018.
Reflecting growth in CPS non-teacher positions relative
to city employment within the M-E-A-B-F, between 2018
and 2024 CPS employees in M-E-A-B-F increased
by 7,239 individuals while there were only
151 additional city employees during that time period.
In 2020, concurrent with Chicago Public Schools transition
to a fully elected school board independent of the city,
the Chicago Board of Education
and the city entered into an intergovernmental agreement
requiring CPS to assume a share
of the city's employer contribution
to the municipal employee Annuity
and Benefit Fund on behalf of its non-teacher employees.
CPA MA CPS made these payments for three years.
Under the IGA, under the agreement CPS payments were
to ramp up to full funding by 2025.
However, recognizing the fiscal pressure CPS was facing,
the city revised the CPS reimbursement expectation from the
original 250 million in 2024
to 175 million annually for 2024.
And 2025 CPS did not make the payment
in 2024
and did not include the payment in the CPS budget passed in
August, resulting in a significant shortfall relative
to the agreement which contributed to the city ending 2024
with a deficit In less than two years, the CPS Board
of ECA education will be fully independent from city council
and the mayor for the city to bear.
A cost that we have limited influence over is not the
balanced approach that we need.
It is also not consistent with the financial
and operational disentanglement that the state, city
and CPS had been diligently working towards
turning towards the subject of bonds.
The city also worked diligently during the first half
of 2025 to maintain funding for its infrastructure projects.
In June of 2025,
the city sold 695 million aggregate principle amount
of general obligation bonds, the 2025 Series A, B, C, D,
and E, the alphabet soup of bonds.
Proceeds of the bonds were used to finance a portion
of the city's capital improvement program
funded the Alderman Menu program
and funded LED service line replacements.
Additionally, the city closed on its $82 million principal
amount of general obligation bonds to fund housing
and economic development projects.
Proceeds of the housing
and economic development bonds were used
to finance certain affordable housing
and community development programs such as Shy mortgage,
SRO preservation, south Shore Preservation, as well
as a variety of other individual projects.
These investments in infrastructure, housing,
and economic development are vital
to the long-term health of our city.
And investor appetite remains strong for the city's bonds.
We look forward to your questions
and to working with you throughout the remainder of 2025
to prudently address these legacy pension
and debt obligations.
Thank you for your time today.
Thank you. Uh, CFO Jaworski
and final, we will have, uh, comptroller Beski.
Can you hear me? Yes, we can. Okay.
Uh, before I start, I just wanted to mention I have, um,
Joel Flores and Brian Carlson, two of our deputies.
And, uh, and then my whole team, unlike my colleagues here,
is most of them are in the back.
And it's 'cause they get nervous when I have a
microphone in front of me.
Um, actually there was a candidate for state treasurer once
walking around all these business groups,
and they were, they were asking 'em questions about,
you know, how's, how are investments gonna do?
What's your strategy? And he said, wait, wait a minute.
I, I'm running for treasurer, not deputy treasurer.
So anyway, with that, um, honorable Chairperson,
urban and Esteem members of the City Council Budget
and Operations Committee, vice Chair Lee,
appreciate the opportunity
to participate in this first midyear budget presentation.
As you're aware, budget is the most important
policy document in city government.
While we, meaning the executive
and legislative branches strive to forecast revenues
and anticipate expenses, it is never an exact science.
We are often at the whims
of unanticipated circumstances resulting from economic,
political, and social events outside of our control.
As the Greek philosopher Orus once said,
the only constant in life has changed.
So I want to applaud all of you, mayor Johnson
and Director Guzman
and her staff for facilitating this hearing.
It enables all of us on behalf
of Chicagoans in a transparent
and deliberate fashion to evaluate in real time
the implementation of the 2025 budget.
I believe what we learned
through this open dialogue will surely help us in meeting
the fiscal challenges of 2026 to be most efficient,
I'm going to highlight initiatives related
to revenue generation
and a sampling of operational changes resulting in
savings to taxpayers, as these are most germane
to the work of this committee.
If I highlight areas of underperformance
or places where we need to make investments to improve,
rest assured these will be addressed front
and center during the upcoming 2026 budget hearings.
That said, if you have any suggestions,
I'm open to any ideas.
So, one of the things that DOF we, that we do is, you know,
is collect revenues, fines, and fees.
We administer payroll, employee benefits, workman's comp,
risk management, payment processing to vendors,
and not-for-profits and produce timely
and accurate financial reports.
With respect to revenues, we collect a total
of 4 billion annually.
Two major sources we collect are business taxes
and utility taxes.
I'm pleased to report that these are up year over year
by 13 8% and 3.4% respectively.
Parking forcement is also a big part of what we do.
The intent behind citations, fines,
and fees is to foster a safe Chicago
for pedestrians, cyclists, and drivers.
Our parking ticket revenues are $96 million as
of July, 2025 up, 8.3% compared
to 2024.
It should be noted that red light
and speeding camera tickets while trending steady year over
year, are showing declines due to change driver behavior.
Respect to equity, we use data-driven enforcement,
so we assure an even-handed
and equitable approach to allocating resources
to parking enforcement.
In addition, DOF has success,
has successfully implemented several fines and fees reforms.
These include the Clear Plat Relief Program, leak relief
and Administrative Debt Relief.
These programs have helped 650,000
low income Chicagoans realize over 300 million in savings.
We also launched the vehicle violation Debt Relief program.
This ticket amnesty ran from April to July of 2025.
The city collected close to 16 million.
We wouldn't have collected otherwise,
and motorist saved 16.4 million.
This last month of this program included targeted
public service announcements.
Announcements, something we are working
to incorporate into all of our debt relief programs.
A major challenge we face in parking enforcement
and related collections is personnel
recruitment and retention.
The average parking enforcement aid is paid $51,000,
but brings in $475,000 annually.
At the start of the fiscal year, we hired 68 parking
and enforcement a.
Yet we experienced consistent turnover due
to variety of factors.
Working with the Department of Human Resources, we were able
to create a pool of qualified applicants
to quickly backfill vacant positions.
Conse. Consequently, we have 93 positions filled,
14 people in the process of being hired,
and then we'll have no vacancies.
We have several other positions in DOF,
which are revenue positive.
Tax auditors are paid 83 to 141,000.
They bring in $2.3 million.
Accounts receivable collections, they are paid 55,000.
They bring in 700, sorry, 73,000.
And then booters are paid 94,000
and they bring in 167,000.
There are a small number of vacancies in these areas,
which were in the process of being filled.
Clear answer to dealing
with personnel constraints is the deployment
of artificial intelligence and technology.
Working with cdot, we implemented the Smart Streets pilot,
the pilot covering area, including Lake Michigan to Ashland
and North Avenue to Roosevelt.
Since its inception in November of 2024,
there have been 7,121 violations in
bus and bike lanes.
This represents 181% increase in violations issued
before the implementation of Smart Streets.
In addition to generating over 850,000 in new revenue,
it's also led to safer streets with 64% of all first time
violators, not repeating 81% for two time in vendors.
And after three tickets, nine outta 10 people
comply with the law.
In the fourth quarter of this year,
the smart streets is being expanded
through placing cameras on CTA buses and adding meters
and streete violations, uh, as well.
Um, over the course of the year, we've been able
to lower our costs
and improve customer service to our stakeholders.
Our workers' compensation division, through
a strategic claim closure reduced open claims by 5%.
This resulted in an $8 million reduction in claim reserves
despite a spike in new injuries.
We have also added part-time supplemental personnel
as cashiers at our five payment processing centers,
thereby reducing wait times for residents seeking
to make payments for city stickers, licenses, or fines.
I hope this provides an overview of how DOF has worked
to fulfill its mission in 2025.
I look forward to your questions. Thank you.
Thank you. Uh, comptroller Belsky, um, as it started, uh,
earlier, uh, every member, uh, who would like,
we'll have five minutes, uh, on the clock.
Um, we had asked for, uh, information, uh, via
survey, and we did get some responses.
So, um, actually, uh, Ray,
it was Ray's Lucky Day, and he's out of the room.
He's gonna go first. So he, he was number one.
Uh, next would've been Gil Viegas. He's not here.
So first question goes to Samantha Nugent.
Thank you chairman. Uh, and good morning
and good morning, everybody up front.
Appreciate the comments.
Uh, can you guys talk me through
how many folks we have being paid by ARPA
that will not have, um, will no longer be, be able
to be paid after 1231?
Just to make sure I understand the question,
is your question, um, how many people are currently, uh,
funded through our ARPA grant
that the programs will be expiring?
Uh, correct. Thank you.
Um, I, I don't have that number off the top of my head,
but I do have, um, my managing deputy over grants in the,
the box match Schmitz, um, who can, um,
provide some context, but if we don't have the answer,
we can definitely get that to you through the chair.
Okay.
Uh, Matthew Schmitz, managing Deputy Budget Director.
Uh, I do not have the exact numbers in front of me.
I can look them up and provide them.
Okay. Let's just get in the interest of time then.
If you both don't need to tell me you don't have,
just get it to me through the chair.
That's fine. Um, in finance general, now
that all the labor contracts are settled,
there shouldn't be money set aside
for CBAs moving forward then.
Right.
Um, to the extent that the contracts are all ratified
by the end of this year, the, um, funding
for the contracts will again,
be in departmental budgets beginning in 2026.
Be in the department of what?
I'm sorry, I didn't hear. You. Will
Be in departmental budgets beginning 2026. Yes.
Okay. And
how, I know that we just, um,
we've been talking about the Office
of Public Safety Administration.
Do we have any data or anything?
I, so several years ago we created, um, the Office
of Public Safety Administration to create, for lack
of a better term, shared services to potentially cut costs.
Um, you know, I asked the new incoming director, same thing.
I've asked Anastasia
before, do we have any data that shows that it's working?
Is it not working? Is it better to go back to the
respective public safety agencies?
Or like, where are we with that?
And, and what's the thought there?
Um, thank you for the question. Uh, Alderwoman Nugent.
So, um, each year we do produce a, uh, one pager
for City Council that reflects the cost savings
through OPSA.
We can get that to you through the chair.
Um, I, I will say, um, that one of the things
that we have been looking at, which was also
through a management ordinance that, uh,
Alderwoman Dow champion
and got passed as part of the budget was an evaluation
of OPSA,
and in particular, an audit of the Medical Services unit.
Um, that, um, audit will be, the findings are forthcoming,
um, hopefully by the end of this month, uh, to City Council,
um, which will show areas of, of, of recommended improvement
to make that particular unit within OPSA work.
The other thing that we have,
Just, just really quick, so is that unit losing?
Is it costing more? Are we like, tell me what that means.
So the audit was, um, was, uh, requested, uh,
by the city council to understand why
so many officers are on layup, uh, both in fire
and, uh, the police department.
Um, and that does, um,
from initial findings does end up costing the city money
largely in lost productivity of officers
who are not on the job, but also through increased overtime,
uh, for officers who have to backfill officers who are out.
So we wanted to diagnose the reason why that occurred, um,
and strengthen opsa, uh, administration
of the medical services.
The other thing that we have done, which, uh, are also, um,
information forthcoming to city council is benchmark a lot
of our operations against other cities.
And one thing that that benchmarking has helped us see is
that more and more, um, units
of government are trending towards shared services as a way
of cost, uh, of cost savings, which will be information
that we'll be able to provide to you.
Okay. I, I appreciate that.
And I, um, I talked to Ms. Patterson, who's the new, uh,
director and I, and I think she's great and well qualified.
My, my question is her the same as the former director?
Like, I think we just have
to know whether it's a good idea or not.
If it's, if it's not saving us money, the budget is dire,
um, then we should disband it
and put people back in the respective, um,
public safety agencies.
If we, we can demonstrate that we're saving money.
And there, there's a return on investment and value.
I'm all for it, but I think we've been sort of puttering
around with it for a few years.
So I think we should figure it out this year if
it's, if it's worth it or not.
Um, my last question is, I know we've discussed the, um,
the report that Deloitte is doing for the city,
and I know that, or when can we see that?
I, I'm sorry, I couldn't hear you. The
Deloitte report.
I, I believe they did the audit of the city.
We've been talking about a report that Deloitte did,
or Ernst and Young, pardon me.
Ernst and Young. Um, we're, uh, Mr.
Chairman, I just, go ahead, finish, finish this question.
I would love to see the report that Ernst
and Young has done for the city.
'cause I, I would welcome it.
I, I think any good advice and counsel would be welcome.
And I can, we see it in its entirety. So,
Um, just as a clarification, um,
EY didn't do an audit of the city.
So they have pro, they've done an analysis
of certain aspects of the city's budget benchmarking against
how other cities are operating, um, and provided
and will be providing recommendations.
We are, uh, still meeting with departments to finalize
the assumptions and findings from ey,
and we'll be putting that together
to provide to city council.
So I understand that, um,
and I, you know, I understand that, you know,
this is being anticipated.
It's being waited for. We are trying to finalize it,
but have to make sure that we finalize our discussions
with departments to ensure that our assumptions are correct,
but we anticipate we will be getting that to you shortly.
Sure. Um, I Thank you. Okay. Um,
Mr. Chairman, just, uh,
speaking to the
Go ahead. Cost
sharing. Um, on cost sharing, this is really
somewhat related, is that one of the sources
of revenue are called debt checks.
As you know, when people are being employed here
or businesses are getting licenses, we check
to see any outstanding violations they
have, they have to pay.
And one of the things I've found is
that we have been sending, uh, information over to all
of our sister governments about debt checks,
and the only one that cooperates is the Park district.
So we're gonna launch an initiative to meet with all of them
to get them in compliance.
It's several million dollars that we're,
uh, leaving on the table.
Thank you. Uh, wanna recognize, uh, alderman, Mitch, uh,
non-members, Cruz Lawson and Hopping Worth?
Uh, for, for the record, uh, alderman Riley had hand up.
Yes. Chairman, I just had a few questions.
Oh, okay. We're gonna put you on the list. Okay.
Um, next is, uh, Altman Vasquez.
Thank you. Thank you very much.
Uh, chairman, uh, thank you as well
to budget director and everyone else. Hold
On. Altman Vasquez, followed
by Altman Scott,
just so she's aware.
Okay. Thank you. Um, so much.
So, um, I've got a number of questions.
First, I'm glad that we're doing this.
I think, as we all know, sometimes we get our budget
documents mid to end October,
and then have to figure out the budget by end of the year.
And there have been times where it's been challenging
for a number of us when we're getting
through the chair questions,
so then find the answers in time to actually be informed.
So I'll just kind of rattle off questions, uh, that can,
and we'll be emailing, following this
to send through the chair as well.
So, uh, revenue categories are shown in a rolled up format
instead of broken out by revenue source.
Uh, similarly, expenditure categories are shown in a rolled
up format instead of broken out
by appropriation authority description
and account description.
Can this be changed to provide helpful
context in future years?
Um, large revenue and expenditure categories without
breakouts are less helpful in isolating kind of some
of the shifts as far as how it's been presented to us.
Um, we can definitely, um, in, you know, uh, work with you
and, and members of city council to understand what you're,
you'd like to see and be able to provide that.
Um, as you and I have had several conversations about this,
um, as well as with your staff
and with cofa, we do have data limitations
because of how our systems are currently built,
which we are working to replace.
But, um, um, we will continue
that conversation to see what's possible.
Yeah. Do we know what the timeline is for,
like replacing some of the,
I know I remember talking last year about it,
so I'm just trying to figure out what a
timeline is to kind of get that updated.
Yeah, believe you and me, like, I push every day
for the ERP to be, you know, our top priority
because it, it, it, you know, for members
of the finance team, it is the most important tool
that we can have to not only be able to forecast accurately,
but to do the type of reporting that you're calling for
and the public is calling for.
Um, but the current system that we have is just
so manually based, um, that it, it makes what you're asking
for, uh, somewhat difficult.
Um, you know, that that is something that, you know,
we have been pushing for the DTI, um, uh, head,
you know, is prioritizing payroll first as the first system
to be implemented because we know
that there is real savings, um, to be had
by putting that system first.
I don't have the full phased timeline for you,
but that's something that we can
definitely, uh, work to get.
Okay. So I know we get, um, quarterly transfer reports
per, like, the conversation we were having.
And I'm just trying to figure out
police misconduct settlements.
So if, for example, we're appropriated for $82 million
as we were for the, the year,
and we're clearly gone over that,
we're at a think about 130, 140 if not more, where's
that money coming from to pay off the settlements?
Where's that moving from?
Because none of it's shown in any
of the transfer reports that we've gotten.
So it feels to me like we haven't
paid people the settlements.
That, and, and maybe I'm not understanding that
because there's a big difference between 82 million
and how, maybe I'll ask first, how much do we have
to pay out in settlements this year?
Um, we're budgeted to a, for $150 million in,
uh, payouts for settlements. So,
Can you repeat that one again Around,
I don't have the exact number,
but it's around $150 million.
That's where we're at. But we had appropriated 82 million
For settlements and judgements,
uh, for the city of Chicago.
Uh, city council appropriated a hundred, um,
in the aggregate $150 million
around roughly. I can get you the exact number.
So I guess compared to what we're
actually y'all voting on, are we still under that?
Are we, we've surpassed what we appropriated?
Um, I don't have the exact number,
but I can get that to you through the chair.
Okay. In, in the, in the event.
'cause I know in prior years that's occurred,
where's that money come from,
Um, where we've gone over.
So, um, the, uh, city, you know,
has an appropriated budget, um, that, uh, uh, um,
that the city stays within.
Um, so that funding has come from under
or salvaged in other lines within the city budget.
Do you have any, now that we're getting the reports,
you should be able to see those lines,
but are you able to show that in past years?
Because I think some of us are under the assumption
that the vacancies that never get filled are
where the money comes from to then cover the misconduct
settlements or overtime.
And we just don't have that written anywhere.
And now that we're getting the quarterly reporting,
it doesn't necessarily show us yet where that's coming.
And that would be pretty
concerning if we've already gone over what we appropriated.
And so I, I'd like to get information on
that if you get sent through the chair.
Uh, and then my last question I've got,
which is like this black box called Finance General,
where now that we have kind of figured out some
of the contracts, are we able
to get a better sense of what is in there?
Because we never find out what moves in
and out of finance general separate from the money
that's used for benefits or contracts.
Um, so outside of benefits
and the, uh, money that we have on reserve for contracts,
we also, that's also where we budget the, um, amount
for Colas that happen, uh, throughout the year.
Um, that City Council appropriates.
Um, in addition to that, that's largely
where our enterprise wide technology contracts that, um,
we are working, uh, based on, uh,
feedback from city council, from the budget committee
to shift, um, anything that is now a known cost
for a department into their department budgets.
But as, uh, Alder women Nugent mentioned earlier,
we have a couple of contracts
that are still being finalized, uh, that hopefully will come
before City Council before the end of this year.
And to the extent that they're ratified and,
and, uh, signed off on
and approved by city council, uh, the costs for those, um,
you'll know, 'cause you'll have to vote on it.
Those will no longer sit in finance general in 2026.
They'll be in, they'll be a part of department budgets.
So when those are out, are we gonna be able
to get like a line item of what's in Finance General
For 2026?
Yeah. Y yes, we, we provide that every single year.
'cause it's, uh, through the chair that we get a requested,
We just never get the line item. We just
get like a general one, one more detail.
Thank you very much. I'll send 'em through email.
Okay. Uh, could you, um, there's a lot of, um,
I'll, I'll call maybe misunderstanding about transfers
and the, uh, administrative ability to,
I won't say move money,
but to, um, potentially be
above an appropriated amount in a specific line item,
but in the functions totality, they are below.
Could you explain that concept in state law
and how that applies to us here at the city?
Like, so for a good example is, um, over time, right?
Um, so, uh, under state law, under um,
federal law, we are required
to pay people's their salaries once they have, um,
done the service, done the work.
Appropriating dollars for overtime is a art, not a science,
meaning that it's an estimate every single year based on
looking at, um, you know, past history of overtime,
but also what our expectations are
and what we are asking our departments to do as it relates
to, uh, staying within certain caps for overtime.
Um, but if a department, uh,
does go over their overtime budget,
because we have to make, we have to pay that out,
it's paid out in payroll.
Um, we can't hold up payroll
if in a particular month a department goes
over their overtime budget.
The reason why it is in the same series as payroll is
because salvage within payroll covers any
overage and overtime.
Okay. Thank you. Um, uh, next, oh, alderman, uh,
Scott, she's out.
Um, alderman Lawson,
I'm pretty sure I'm not the next one on line chair.
You, you're next. You, you actually filled out the
paperwork and asked questions, so we're gonna give you a, a,
a piece to move forward, followed by, I'm gonna go back
to Altman Lopez since she's back.
All right, great. I I actually, um,
I think I might've gotten my answer, but I,
I know we're seeing a decline in sales tax revenue, um,
and was curious if that is, if we could break
that down by industry.
Um, I know there's a projection
that the restaurant taxes are projected to grow,
but midyear have we seen specifically on restaurants, uh,
that trend continue?
Um, so, uh, there's two function,
two parts that our sales tax.
Uh, one part is the fact that I don't know what year it was,
but when we, uh, securitized our sales tax
and created the sales tax securitization corporation,
the sales tax that the state, um, collects on the,
on our behalf first goes to paying off our STSC uh, bonds.
Um, so we get any residual from that.
So depending upon the debt service, um, payments for
that year, um, it can have an impact on
how much residual we get into our corporate fund.
Um, the other, um, part of that, we do have a portion
that we do, um, uh, uh, apply on top of
that, um, through the beginning of this year.
So through the first quarter of this year,
we've actually seen our, you know,
consumer spending has actually been pretty robust.
So, um, the declines that you're seeing have more to do
with, um, uh, things that have happened at the state law
that have shifted, um, how things are accounted
for under either sales tax or use tax.
So what you'll see in the report
that we put out every month is our use tax.
Um, um, uh, receivables
and collections are higher than what we've budgeted
because of that shift that's happening
at the, at the state level.
So I, I asked this generally in the form too,
but are there any funds that are, are way
above expectations you wanna highlight
or any that are way below and and should be cautionary?
Yeah, so, um, you know, um, thank you for that question.
Um, each month, uh, we try to highlight
that in the monthly revenue reports that we provide
to city council and to the public.
So the, the big ones that are down this year are, again,
the ones that we don't control.
So PPRT is again down.
Um, you know, we base our, uh,
budget estimate on reports that IDOs puts out.
Um, and they have been, uh, reporting, uh,
decline in business income tax through the year.
And that one is particularly, um, impactful to us
because we get a much larger distributive share
of the personal property replacement tax countering.
That is the fact that personal income tax collections
that we receive are up above budget this year
by about $30 million.
And that has to do with the fact that, again, um, you know,
the shift that the state interpret
how they interpret business income tax
versus personal income tax.
Um, the problem with the fact
that income tax versus personal income tax is up is
that we only receive a 1% distributive share of the revenue
that the state collects statewide.
Uh, the other one that's down this year, um, uh, relative
to budget is our emergency medical transport, uh, revenue.
And that's the money that we get from our
ambulatory services.
Uh, that is down, um, about $28 million this year so far.
Um, the really big ones that are overperforming,
I can't say this, I think I say this every time that I come
before City Council, we talk about this when we were at city
club, the taxes that we control are outperforming by
and large our estimates by, um, pretty large margins.
So our business taxes,
our transaction taxes are up amusement taxes up, um, by
and large, um, against, um, expectations.
Great. Um, you know, I'm very pro-growth
and I want to see new properties come onto the tax rolls.
Do we have any estimate of that at this point of the year?
What we expect for 25?
Uh, for within the property tax? Yes. Um, I don't have it.
I'm gonna have my team, uh, send me that
and I can get that to you
if you wanna go to the next question.
That'd be great. Um, I you
Quick you're asking for the new growth,
Right? So I think last year
we had 30 million in new properties.
I would love it to be a hundred
million, uh, right, wouldn't you?
Um, because I, you know,
and then obviously that contributes to our sales tax base
or at least everything else we're doing if we're growing,
um, that that's a big part of it.
Um, I guess the only other question I had, I, you know,
I'd met with controller about, uh,
a red light camera in my ward,
but also the, the expansion of, um, I'm sorry,
I've met about speed cameras, but also the
expansion of red light cameras.
Um, because I, I think that's a good way to deter behavior
and it doesn't hurt our, our bottom line too.
Have we explored, um, now that you've been in place
for a few weeks, um, any additional locations
or technologies that could assist us
with specifically red light camera?
Well, we, um, uh, w we
put into place I think 30 new cam either speed
or red light cameras.
Um, but they're limited to, um, uh,
speed cameras are limited to school and park areas.
Right. And we're actually working
with Alderman la spot on a, on a, uh, kind
of an enhanced safety initiative.
And, and part of that would be, um, uh,
maybe putting speed cameras in other locations in the city.
I think it's something we should do
because it's demonstrated that
safety has improved in those areas.
So, um, you know, in next year's budget,
if we can do it, uh,
because these, again, are revenue positive investments, um,
that we'd like to place 'em in more areas.
Right. So specifically just though to close the point on,
on red light as opposed to speed, right.
We've got a lot of people running red lights, a lot
of people turning when they shouldn't on red.
Yeah, I think, I think we have an opportunity there.
We've been very focused on speed,
but to make sure as we talk again next month
that we're looking at the red light too.
Yeah. Great. Thank you, chair.
Thank you. Uh, Altman lawsuit
and, uh, well, let's what you state.
Uh, I think, uh, I don't know if we have the ability to go
beyond the, uh, I think it's a foot number
or a feet from a school or a park.
So I don't know if we have that ability
to place these in any other places pursuant to state law.
But secondly, the, um, I think we're also limited into
what those dollars can be utilized for as well.
So I don't know if we, if, if, uh, law could explain to us
what the, what those actual dollars could be used for,
and not in the general sense,
but I know they were very specific in, uh, purpose.
We had to use those for,
There's no one from law,
but there, there, the, the, uh, statute itself, uh, reflects
what we can use those dollars for.
We can get that through the chair to you.
We, we do provide a one pager on that
to city council each year as well,
but we can, um, provide that.
And to your question about new properties being added
to the property tax for 2026,
what we're currently estimating is about $40 million.
Great. Thank you. Thank Chair.
Okay. Thank you very much. Uh, we'll go to, uh, alderman.
Uh, first off, I wanna recognize,
I thought I Alderman Silverstein walk in.
I did. Okay. Very well. We'll recognize her
for the purposes of quorum.
Did I miss who else? Oh, my apologies.
Alderman Gardner as well. Uh, nonmember Gardner M
and Autumn Silverstein.
Got them. Did I miss anybody else? Anybody else?
Slide in on me. Okay.
Uh, next we're gonna go to Autumn Lopez, followed
by Alder per Alderman.
Bill,
Thank you chairman, and
good morning members of the committee.
Good morning to all of you today.
Um, I wish to talk about this report
your mid-year 2025 report, which was shared with us.
And I first wish to start with page 10,
which is the year to date expenditure performance summary.
So on page
11, 12, 11, 12, 13,
and 14, discuss all of the departments, um,
and their funding sources.
But overall, it shows that particularly
the $16.7 billion in allotted expenditures,
were at a 23% total spend as of May 31st.
Uh, which means that for the remainder of the year,
we have approximately 77%
left unspent as of this point.
Is there any, is that
because of department efficiencies?
What has, uh, pushed for such a low spend up to this point?
And conversely,
what are we looking at on the opposite side of this?
Are we looking at a rush?
Will we be looking at a rush by the departments
to spend in full?
Or are we gonna find ourselves, um, at 80% spent
with 20% saved?
I love that question. Thank you so much for asking it. I
Love when you say you love my questions.
I've never heard that before.
We actually think a lot more alike than
you probably would like to admit.
Um, but no, it's a great question.
It's something that my team is constantly, constantly, um,
monitoring and and concerned with
because that is actually not a feature
that is unique to this government.
It's, it happens in, in all budgets, right?
Um, so there's a couple of things.
Um, January through May,
this is just showing expenditures, right?
It, it doesn't show encumbrances
because a lot of departments, depending upon
how their contracts work,
can encumber an entire year's worth.
But, um, depending upon how much use they get out of
that contract, they may not end up spending all of that.
So we also monitor encumbrances as well.
Um, but uh, January through May,
there's a couple things that are going on.
There is lower activity.
Um, our depart, you know, it's colder, uh,
colder months of the year.
So, um, this is also where you see, uh, lower usage
of overtime by departments.
And that is actually something
that we have been monitoring throughout the year and,
and taking a much more active role in working
with departments to actually lower their overtime.
Um, so that you're seeing that happening, um,
this year thus far.
And you will see that happening throughout the year.
Although we know that, um, as, um,
comptroller Belsky said earlier, uh, there are things
that are un anticipated that occurred that could throw even
that off throughout the year.
We now have an unprecedented kind of takeover of our city
by the federal government
that will probably drive up overtime in CPD, right?
So that's something that we didn't expect,
but that we're monitoring.
Um, there's also the work that we've done
to lower our contract spend this year through the, um,
the initiative that was, uh, done through the Department
of Procurement Services where they're
renegotiating our contracts.
Um, and I think, you know,
just generally we had a slower start of the,
to the year when, when it came to hiring.
So all of those things
and many more are contributing to the lower spend.
But we do, and we do see this throughout the year, more
of our spend happens in the second part of
Thank you. So, I'm sorry,
not to cut you off,
but yeah, sorry, the chairman's gonna get
me in about a minute and a half.
So if you can share through the chair
what the actual encumbrances also would be for all
of these categories so that we could see and then adjust
accordingly if that impacts the actual anticipated spend
for that section as well. I'd appreciate it.
And I just, to that point, I would say
that when we did the forecast, we did adjust for that.
And so that's why we have the year ending a hundred million
at, at very conservatively ending a hundred million dollars
below budget on expenditures.
Thank you. Okay. Switching pages now to page 28,
which is the workforce vacancy on this report,
the three year vacancy trend analysis, um,
which I believe also looks at some
of the historical vacancies that I
and a number of my colleagues are always referring to.
Um, while this talks about positions,
and we see in 2023 we had 5,166 vacancies,
2024, 4,889 vacancies.
And in fiscal year 2025, 3,717 vacancies.
And then it goes on to list vacancies by department
is there, in this report, I couldn't find
not just the percent vacancies,
but the total valuation of those vacancies.
So for example, if you say that we have 3,717 vacancies,
what is the salaries associated with that?
And what is the overcharge for the
institutional vacancies that we see every year?
We can get that for you through the chair.
Okay. Thank you. With a minute to s second de spare.
Chairman,
You, you, you amaze me.
Be that as it may, uh, Altman, bill was next.
Uh, Al um, I'm gonna go
to Altman Riley would raise his hand, um,
after Alderman Riley would go to Alderman Dowell. Got you.
Thank you Chairman. Uh, good morning.
Um, wanted
to just follow up very quickly on Alder Woman Nugent's.
Uh, question about the Ernst and Young Report.
Just to make sure that I'm clear, I understand that you need
to work with the various departments to finalize, um,
a version of a report that you're gonna present,
I assume, to us and the public.
But wo Nugent asked specifically if we will be given access
to the original unredacted report
prepared by Ernst and Young,
or will that be filtered by you all before we see that?
I think with any report, even the reports
that I produce from my department, it goes
through many iterations.
Um, it goes through, uh, fact checking.
It goes through, um, you know, filtering.
Um, and so I think that that is a pretty typical
of any report that is produced.
Um, what we are producing for city council,
and frankly, to the mayor who commissioned the work, um, are
a bunch of, of, of options and benchmarking.
Um, and so what we are producing
and will be, uh, made available to City Council will be the,
um, the, the final, uh, options that we believe,
um, our, uh, uh,
after talking to our own departments who have
to do this work practical for the city of Chicago.
And can you remind me, how did we pay
for this $3 million report?
What fund did that come out of?
Um, it came out of, um, uh, the, uh, the finance general,
Um, finance general.
Was that a budgeted line item in the Sears budget?
It is. And you're
suggesting that members of this body
who are co-equal partner in government
with the administration shouldn't have access
to the Unredacted Raw report?
That's not what I'm suggesting at all.
So I guess I'd ask on the record, will we be given access
to the Unredacted Raw report
before it's filtered by your departments?
Uh, since it's taxpayer dollars that this body approved,
it's not the mayor's report.
It belongs to all of us.
I'm asking if we'll be able
to see the recommendations we pay to Young,
a tremendous amount of tax dollars for
before you all filter it
and curate it to the mayor's desire.
Again, that's not what I suggested.
That's not what I, I stated. Okay.
Then I'll ask, I'll ask you then, just tell me
what we can expect. Will we get that?
What you can expect is, uh, the final, um, document
with the recommendations in it,
Mr. Chairman? Um,
I would, I would ask that, that you
provide members of this committee
and frankly, the full City Council, a copy of the Unredacted
and Unfiltered report.
Um, we're spending a lot of money for Ernst
and Young's professional expert opinion.
And the, the risk here of having it filtered is
that perhaps some very good ideas
that don't necessarily match with, um,
this administration's wishes may be excluded from
what is presented to us, the members of this body
who are being asked to partner with the administration
and balancing a very difficult budget this year.
And so I just wanna make sure
that there's nothing left on the cutting floor,
cutting room floor that, that we don't get to see ourselves.
You know, everyone here has a different opinion
on how to balance budgets.
Um, but if we're gonna make this an honest effort together,
we shouldn't be hiding the football.
I understand your point. Um, I am, uh,
we'll, we'll address that.
We'll work through with, uh, the mayor's office
and law to work through that.
I do though, um, it is,
it is not our City Council's report.
Um, so I have to, we'll work through law on that. Well,
How is that So Chairman, I mean, we,
I think vote, uh, approve budgets.
Let me finish my, my point.
I, I think that the, if the administration author something,
and they do have a right to work through, uh, the nuances
of doing that, just as we have the right to work
through the nuances of what we, uh, do, um, as a,
as a legislative body.
So again, uh, I'm not a hundred percent sure of what we are,
quote unquote entitled to, uh, as the legislative body, uh,
for that particular report.
And we'll explore that with the law department,
and if we're due, whatever we're due, we will get.
Okay. Well, I,
I'd appreciate following up with you on that Chairman.
Um, no worries.
Because again, this isn't the administration's money.
This is our money. Right. Um, can I thank you.
Uh, so can
I address that for just a second?
Yes. We're gonna move on. Oh,
We are. Okay. We
can move on.
Um, Ms.
Jaworski, during your presentation, you, you referenced and,
and thank you for providing some additional clarity
around the M-E-A-B-F, uh, pension fund
and, um, the many CPS employees
that are included in it,
and how that is problematic, um, for our budgeting.
And, um, we, we've seen a whole lot of political football,
uh, played this year with, um, pension contributions
and who should be making them, um, whether that's CPS
or whether that's the city of Chicago.
Um, and as you note, uh, the school board is on a path to be
entirely elected, uh, which means they'll be self-governing.
Uh, they will be approving their budgets
whether we like them or not.
Um, and they'll be seeking a lot of money,
uh, from us moving forward.
Unless there's a change that requires a
legislative fix, does it not?
So we don't have to rely upon these,
these intergovernmental agreements
that continue to be ignored.
Yes. The way M-E-I-B-F is
constituted is at the state level.
Um, in order to formally, uh, make a change requiring
CPS to, uh, make payments, uh, beyond, uh, them agreeing
to an inter through an intergovernmental agreement,
it would require state legislation.
And why haven't we seen that addressed yet?
Um, we have a governmental affairs team in Springfield.
Um, I, I would think, given how red hot this issue is
and has been for some time, there would be some,
there'd be some urgency to get this addressed.
And is there a plan to do so in the fall veto session?
Um, because these liabilities are piling up for us. Yeah.
Um, and our hamstring, our ability as a council
to help balance this budget.
Yeah. I can't speak to the timing of whether
that would come up in the fall veto session or next year.
Um, it is a topic of significant internal discussion.
Um, there are many areas, uh, related to CPS
that, um, you know,
need legisl legislative change.
Uh, for instance, uh, when CPS was given powers
to have an elected school board
and be independent, they were not given the powers
that other school districts have, for instance, to go
to referendum to, um,
engage in direct deficit borrowing.
There's quite a number of things
that other school districts have the powers to do.
Um, so there's a significant amount of discussion
around thinking about a legislative approach to CPS.
Appreciate the answer.
I hope that's a priority for our government affairs team.
Chairman. Chairman, I had one last question,
and then I can Oh, we're,
We're you, you, your two questions over.
If you wanna submit it through the chair, we'll make sure
that it gets, uh, done. I'll
Just do it during the real
budget session, then. That's fine.
That's fine. Okay.
Uh, chairman Dowell, followed by, uh, alderman. Mitch.
I thought I was after chairman.
I mean, uh, alderman Beal, but I see he,
He, he's not here.
Okay.
Um, good
Morning, uh, director Guzman.
What is the impact, Ben, of the hiring freeze so far?
So we, um, we anticipate being able
to save by the end of this year.
The fact that we put it in place in August of this year,
we should be able to save on salary
and, uh, fringe benefits around 80
to a hundred million dollars.
Um, I have not, um, quantified what
that is since August of this year,
but we can work on getting that detail for you.
Okay. Um, and what is the current state
of our rainy day reserves?
I'll turn that over to, um, uh, Belski,
but we have about $55 million in the rainy day fund within
the full, um, uh, uh, fund balance.
But Valesky, if you wanna enumerate
No, I, I, I think that's accurate.
We have $50 million in the, um, that's a sign that,
you know, we, we made a commitment to keep
that $50 million in the signed
button, and I think it's intact.
Okay. Um,
Hold for a second. I wanna
elaborate. Could you hold our time please?
Um, the fund balance, uh,
we've got several layers of the fund balance.
Can you kinda talk about the different layers in the fund
balance and the different reserves, uh, that we do have?
Uh, because to say that we only have
$55 million in a rainy day
or reserve doesn't, I think, tell the entire story of,
of our fund balance and what we truly have.
So if you can elaborate a little
more on that, I appreciate it.
Um, sure. So, so, um, I, I don't have the, uh,
the interim reports in front of me,
but, you know, there's a, a, a waterfall of, um,
what's considered fund balance.
So one of them is nons spendable.
So you might have things like inventories in there
that you're not gonna turn into cash.
And then you have things that are, um,
contractually committed.
Uh, so that would be something like a, um, you know, a,
a a grant, something of that nature where there, you know,
where there are restraints by outside parties.
And then, and then the next level is the city council can
put, uh, constraints on what spend,
and then management gets what's called
assigned and unassigned.
So we, for example, assigned is the payment that we make,
um, the additional payment we make into the pension funds.
We made a commitment to that, the rainy day fund.
And then what's left over after that is unassigned.
And that's just cash we can use in the event
that we have an unexpected expenditure
or, uh, unexpected reduction in revenues.
Um, and as you know, last year that was, that was zero.
We've been, uh, trying to build it back up, you know,
as you, as the budget director mentioned, um, you know,
she's keeping costs under what was budgeted,
and we have some own source revenues that are, um,
coming in higher than we expected.
The problem is, the ones we don't have control over, um,
are, are driving that balance down.
Uh, and we're, you know, we're looking for ways to eradicate
that going into year end.
In addition to that, you know, we have the asset reserves,
which have about over $500 million in them.
That wasn't my question,
but I see why you did that, but that's okay. No, I,
I know what you're asking. Why. It
just seemed like a,
Okay.
Um, what impact, uh,
would a larger TIF sweep if we did it this year,
have on development projects,
Depending upon how large of a sweep, um, we get about a,
a billion dollars in new TIF revenue every single year
into the TIFF funds that are currently existing.
And as you know, each year, more and more tiffs will expire.
So that num that that revenue will go down every single
year, new revenue will go down.
And so, when you're talking about new revenue, um,
because all of the revenue
that we've received thus far is already committed
to other projects that, um, will be in place
for the next, uh, several years.
So depending upon how large of a TIF suite, um, it could,
it could essentially, depending upon if you wanted
to use all of the new revenue,
it could put a complete hold on projects. All
Right. And the 82 million
that we have bonded out for the housing
and economic development bond, how much of that
has actually gone out the door?
Um, we'll have to check directly, um, on
how much has gone out the door, but when we issued the
bonds, it was for, uh, you know,
in near an immediate term expenditures.
Um, and it's why we limited the size of it.
Um, even though, you know, we have, uh,
the 1.25 billion in authorization, uh,
it's been very important for us to not issue ahead
and deposit money that is going to, you know, uh,
that we're gonna be paying interest on
and wait for the projects to be ready.
Um, and so, uh, while maybe not all
of it has gone out the door today, if it hasn't, much
of it will be going out soon.
Okay. I just like that number through the chair.
Um, and while I have, while we're on bonds, um,
can you tell me what does our bond calendar, uh, reflect
for the fourth quarter of 2025?
Yes. Um, so, you know, this year, as we mentioned earlier,
um, we did the housing and economic development bond.
We also did a Go Bond, 695 million.
Um, we have a significant amount of airport, uh,
aviation bonds coming up.
So we are looking at actually three separate series
of bonds for O'Hare.
Um, first off, we are going to, um,
issue about 375 million on, uh,
either later this month or early next month.
That will repay a line of credit, meaning it will, um, uh,
repay capital expenditures, uh, for the airport
that have already been expended.
Uh, second, we're gonna do about a billion dollars in a
refunding transaction.
Size of that will vary based on the market that is to, uh,
have debt service savings.
We expect that will be in October.
Um, also in October, we expect to do about $400 million
for Midway Airport.
That's a combination of some, uh, project funding
and a refunding for savings.
In November, we expect to sell $1.5 billion
for O'Hare.
Uh, that is all for new money, um, funding the TAP program
and other elements of the capital improvement program
at, uh, O'Hare.
And then in December, um, we expect
to do a small refunding transaction
for our general obligation bonds.
We're anticipating that will be about a
hundred million dollars.
That is also, uh, market dependent.
Um, we are waiting for further input, um,
on capital expenditures, uh, on the second half of this year
to determine if we would need to do a, uh, geo borrowing,
uh, to pay back any cash that we've used
for capital expenditures
or additional lines, uh, additional draws on our lines
of credit that might occur in the second
half of the year. Okay.
And I did get an answer to your question, um,
thus far this year, just on expenses out the door,
it's $6 million on the HED bond,
but obviously invoices are coming in all the time. Correct.
All right. Um, Mr.
Chair, I have two more questions,
but I'll come back for round two.
Round two. Okay. I wasn't anticipating a round two,
but, uh, we'll see where we land.
Uh, we wanna recognize, uh, alders, uh, Mitchell
Mosley and Ccho Lopez for the purposes of quorum.
Um, I, the point
that we talked about on the, on the fund balance,
and you, we talk about the $146 million deficit
that you are anticipating.
What do we estimate that to do
to the 2025 fund balancing?
Uh, where do we think we land overall, just given that
raw number of 1 46?
Um, I, I think it wipes out our fund balance, uh, the,
the, uh, un the, the part of it that's not, um,
Unassigned, un Un yeah.
That chain design as well as the part that, um,
because you know, there's certain statutes, um, ordinances
that restrict the ability to hit the other fund balance.
Correct. So I think it wipes out the
discretionary fund balance.
Does the, go ahead.
How much is the unassigned?
Uh, I think, uh, uh, comp lab, beski said, uh, zero
because of the non-payment by CPS.
Okay. Last year,
I mean, I, and, and one thing I would say is this is deja
vu all over again.
We're gonna, you know, at this point,
projected have a $146 million deficit.
We had similar last year, and it was equal
or, um, a little less than the CPS payment.
It was less What is, what is, what is that?
Can I add one comment? Please? Go ahead. Yeah.
So our current fund balance at the end
of 24 was 387 million.
Um, that's the assigned fund balance.
Um, that does not include the reserves we talked about,
like the skyway and concession reserves.
Um, that number is relatively similar to
what our fund balance was, uh, pre COVID.
So we had fund balances, for instance, in 2019
of 335 million 20, 2350 9 million.
And then in 21, 22
and 23, it was much higher really as a result
of the very significant amount
of COVID funding, um, that we had.
So we are back at what we would sort
of consider our more normal levels of fund balance.
Um, but the 141 million, while significant,
would not wipe that out.
Um, the other part of the question,
and I think kind of goes back
to the advanced pension payment that has,
uh, that has been made.
I know we make that payment in January.
When do we make the balance of the pension payments
for the four funds?
Yeah. So, uh, in the beginning of the year,
we make a couple of payments, uh, to the funds.
We make the advanced pension payment to the funds.
Um, but we also make the portion
of the payments to the funds.
That is the corporate fund contribution.
The amounts of the, uh, amounts then owed are the amounts
that we are putting on the property tax levy.
And those are deposited
to the pension funds when they're collected.
So around March, um, when we get our first installment
of property taxes, there is a deposit,
and then the next deposit is when we get
the second installment.
So, uh, as I assume everyone here is aware, uh,
second installment, um, bills are delayed, uh,
we have not received those, um, amounts yet.
So at this point, we are engaging, um, with the every one
of the pension funds directly.
And those that need to get funding prior to receipt
of the actual property tax funds in order not to have
to sell assets, um,
are notifying us on a monthly basis of those needs.
Um, we have worked very closely as a team
of everyone who's up here, uh, today, along with Treasury,
to make sure that those funds are available.
Treasury is providing those funds, uh, early, um, such
that the funds will not have to, um, make any asset sales
to deal with the situation.
Um, and when the property tax revenues do come in,
we will get reimbursed for those early advances
that we have made to the funds.
Is it plausible for us to, uh,
deduct the 1 46
that we are anticipating being in the whole
from the pension payment since we've made an advance payment
and we still be statutorily, I guess, on good paper
because we would've made the statutory payment
that's required under state law.
What are, what are your thoughts on that? Uh,
We examined that question last year with the Department
of law, and, uh, they determined at the time
that despite the fact that we had made an advanced payment,
we could not essentially use that
as a credit against our statutory contribution.
Um, we can definitely ask them to
re-examine the question again,
but the answer we had gotten last year
was that we cannot do that.
So even, even though we gave them more money than we were
required to give them, we can't utilize that as a,
as any form of a, of a,
of a credit toward the current year payment,
even though it wasn't required.
That is correct. That was the response
that we got when we, uh, delved into this with the law.
Okay. But we can ask them to redo
It. Yeah. I, I just,
I mean, I mean, I,
I totally understand the purpose
of the advanced pension payment.
Um, and I understand, you know, what it does.
Um, it seems like though all of that's gonna have
to be recalibrated with, uh, the advent of this, uh,
pension legislation that has just passed any advent
of the fact that we had unanticipated, uh,
nonpayment from CPS for two years.
I, I think we, we've gotta retool
otherwise we are, are going to have to get
that revenue from somewhere
or make drastic cuts in order to meet the demands of making
that particular payment.
And the fact that we've given you 200
and some odd million dollars ahead of time, I, I think
that we should get some credit for that.
I don't know if it's half a quarter
or something, uh, based on that, uh, you know, based on
that, uh, based on that move.
So, but I, I do hope you all have
that conversation with law.
We can come up with a,
with a better scenario than where we are today.
Yes, we will definitely follow up with them.
Um, you know, I think, uh, as, uh, uh, commissioner Besky,
uh, mentioned earlier, I'm sorry, kaki, that, uh,
it is a bit of a dejavu situation and,
and it was the circumstances of CPS not paying
that led us to have that same conversation last year.
Um, and we will dig in again, um, understood very clearly
that these are difficult issues
that we are facing right now.
Thank you. Um, alderman Taylors are requesting a
remote participation.
Uh, is there a motion to allow for alman mi?
So, moves all in favor, Sigmar saying aye. Any opposed?
And p chair's, ayes have it.
The, all the material will be added, uh, remotely. I see.
She's online, uh, with us.
Um, we will have, uh, alman mi uh, followed
by Vice Chair Lee, you have a question?
Yes. You you got it. We got everybody's on the list.
Alright, go ahead. Uh, chairman Mitch.
Thank you. Thank you Chairman Erman.
And thank you all for giving us, um, a preview.
Um, before I budget, the one question I hope that
you all would be able to answer for me is, where are we at
with funding that was allocated
by the federal government for flooding?
And if you could give me, uh,
a breakdown from the 2023. Yes,
Thank you for that question.
So, um, as you know, the flood mitigation plan
that the city put forth has several components.
Not only the money that we got from the federal government,
but we put our own bond dollars in place so
that we could get projects started rather quickly.
The, um, the funding for the flood mitigation recovery.
So, basements, and
Can you start off by giving the amount received?
Sure. Uh, so from the federal government, we receive, uh,
just under $430 million, um, for the to,
to pro provide, uh, assistance for homeowners
and businesses affected by the 2023 and 20 20 24 flood.
So they're very specific storms
that happened in the city of Chicago.
Um, in addition to that, the city has, uh,
put up almost another a hundred million dollars to support
that work, uh, through our bond programs.
Um, the portion about 40, $40 million,
uh, for recovery, uh,
for flood mitigation directly in homes.
That is the part that's moving forward
because that doesn't require federal approval.
That's our own bond dollars.
Um, that part, um, the RFP, I'm sorry, the, the contract
for the administrator, um, I believe is, uh, with Department
of Law, um, uh, for the delegate agency
that's gonna help do all of that work.
Um, I don't, so I can get you an update on that as relates
to the $430 million, uh, through the federal government.
As you know, we submitted the plan to hud, um,
they have a 90 day window,
I think it's 90 days in which they are, uh, reviewing it.
We have been in constant contact with them back and forth.
Um, we anticipate that they should be done with their review
and approval sometime, either by the end of
This month When it submitted to HU or
beginning of next month.
When was it submitted to hud?
I, sorry, can you say that one more Time?
When was the application
submitted to hud?
So it was submitted back in, um, uh,
there were many things submitted to hud.
Um, we submitted it back in, I believe May.
Um, they, uh, sent us comments.
Uh, we also had a number of meetings with HUD
and we have resubmitted, um, the action plan to them,
and they are finalizing their review.
Okay. So, um, at this point, the contract
for 40 million is with the law department?
Yes. That that's correct. And when was it
sent to the law department?
I'm, I'm sorry. When was it submitted
to the law department for review?
Um, Somebody's dragging their feet.
That's all I want to tell you.
At the end of the day, there's no way
that we should be waiting since 2023
to get relief for these families.
And I hear it every day.
Somebody gotta get on they butt and do they job.
That's all I know. Wherever it is at.
When the federal, it seem like it's just not connecting.
Do you realize peoples are dying?
Maybe I'm not wanting indirectly. Ew.
I'm venting my frustration that I hear dearly,
and I've heard it for the last, almost two years now,
and, and, and, and it is ridiculous that we have to go
through this, but I wanna be able to put answers out there
where I'm able to share with my constituents, you know,
something gonna be done.
So, so they, they get very frustrated when we keep telling
them that, and I have nothing to share with them.
So we can find out how long will it take for that contractor
to get the law department to look over the contract,
get some fundings to the, uh, organization
because they're being embarked upon.
And it's unfair that the city allow this to happen,
that peoples are going to them and they have no resources.
They have folks based on only thing they have is using their
funds that they have or getting donation from here
and there, and peoples doing work trying to just make,
make it ends meet.
But, uh, hopefully if, you know, we could put a
And thank You sooner, a resident later. Now
I, I will definitely. And
I, um, after this, I will, uh, step back
and we can have a conversation.
But I, I wanna commend you in particular for continuing
to push and fight and, and hold us accountable.
You know, we, we, we are pushing.
We are, we are right there with you.
Um, and there, there are sometimes roadblocks
that are put in our way, but we are pushing,
we, we agree with you.
We want to get these dollars on the street, and we are, I
Appreciate it. I appreciate
it. I just think that we need
to move more Swiffer
and take this issue more seriously if it was one
of their own family members that was living
with this mold in the house.
Our job is to represent our community.
And if we talking about saving life, it, it, it is horrible
to live in a house
that still have mold in it for a year and a half.
You can't imagine what they're breathing in.
I, I don't even wanna think about it.
So we gotta do something about it. Thank you.
Thank you, Mr. Chairman.
Thank you. Uh, chairman Mitch, uh, next we have, um,
vice Chair Lee followed by
Go ahead.
Vice she Lee. I thought it was Bill,
but he, he stepped out again.
He's a slippery one. Um, thank you all for being here.
Good morning. Um, I'll jump right into the questions
and I just kind of took notes as we were going along.
So forgive me that this is gonna bounce around a little bit.
Encumbrances, what happens if
and when encumbrances are unspent?
Um, they are, um, removed
and so that is, uh, salvaged,
uh, left at the end of the year.
Okay. So that, that's a process that, um, is led by,
um, the comptroller's office.
And they send out notices to departments, I believe,
in November of every year, maybe a little bit earlier, um,
with the process by which they have to spend, um,
and the date by which those ENC conferences will be removed
and they can no longer use this year's funding.
Got it. Thank you. Um, regarding the hiring freeze,
I'm just gonna pick up a little bit where, uh,
chair Dowell, uh, left off.
Um, what categories of jobs are okay to hire currently?
Thank you for the question. So, um,
there's obviously certain areas
that we wanna make sure continue.
Um, we don't want to impact our revenue generation
because that would be like, I don't know what's to saying.
Sping your nose. Cutting off your
Nose. Thank
you. I always get it wrong.
Um, so those are unimpacted
by the hiring freeze public safety,
critical public safety positions, fire police.
Mm-hmm. Um, 'cause we do have a mandate
to uphold public safety.
Um, ward superintendents are, um, unaffected
because we understand the connection between, uh,
keeping our neighborhoods safe mm-hmm.
And, and clean, um, um,
and positions that we are required by contract.
So if someone's coming back from a, a leave of absence, um,
we are required, um, under contracts
to have their position available to them.
Oh, and sorry. And mental health, um, specialists.
Thanks. Through the chair, can you provide, um, a list
of the revenue generated,
because I think that it's part the obvious ones, right?
Parking enforcement, um, BACP folks that are, you know,
collecting fines and stuff.
But I, I'd like a clearer picture of what those are
so you don't have to answer it.
Now. Um, does the current forecasted $146 million deficit
for the year, assume that there are no new hires in
in these categories? Yes.
Okay. Um, in, in the ones that are
The ones that you just shared.
Um, so the forecast assumes the
hiring freeze that's in place.
Okay. So there are exemptions to that hiring freeze.
So it assumes that we will continue to hire into those, into
Those categories, the ones that we just Yes.
Talked about. Okay. Great.
Um, how many TIFs are set to sunset this year? Do you know?
I believe there's nine. Uh, maybe that's wrong.
I, I, I'll get, I think it's either eight or nine,
but I can, I can, yeah, you
Get through the chair. I, I'd
like to know the number TIF that are set
to sunset this year and how many have already sunset, um,
year to date prior to this year?
Prior, prior to our meeting, basically. Okay.
Because I don't know, I mean,
I don't know enough about tips.
And when they expire, do they all expire like on
the same day of the year in that
Year? Yes. They all, they all
expire on Decem the, the last day
of the fiscal year in which, um,
their charter allows them to be in place.
So, um, last year we had, uh, an astronomical number expire.
Um, I think it was like 13.
They all expire on December 31st, uh, that year.
And no matter if you haven't finished your project,
no expend no funding from that expiring TIFF can be used
for anything that was incurred
beyond the date that it expires.
Gotcha. Um, so I know we approved
in our budget last year, $298 million TIFF surplus to CPS.
Um, they received,
they reported receiving an additional 80 some odd million
dollars in TIF surplus.
Do we know where that came from?
I know, I, I feel like a broken record asking
this question, but I don't think I've got No,
It's not a broker. It's a great question.
Yeah. Thank you for that.
Um, so when we do our, um, surplus, uh,
declaration every year, it is an estimate.
Um, uh, there's two parts to the declaration.
The first is the amount that we will surplus,
um, on active tif.
So ones that are not expiring, we know
that pretty definitively
because the rest of the funding is, um,
allocated to a project.
So we can pretty, pretty much estimate pretty
accurately how much that is.
The part that we're a little bit conservative on in the, uh,
declared surplus every year.
Is the part attributed to expiring tiffs? Because
You don't know actually what's left in
that TIFF until, well,
We don't know if we, we try
to get an estimate from every single department
and our sister agencies that are, that are getting, uh,
TIF money to do projects, how likely they're gonna be
to finish and complete the project using the TIF funding.
So if they don't, then there could be a, a, a lot
of dollars left over that they weren't able to spend
because we are by law required
to surplus anything in an expiring tiff that
that is not, um,
Used. Okay.
So through the chair, can someone provide, uh,
the number of expiring tips
and the, what we're forecasting at this point?
We think we're gonna have left. I'll submit the other.
I, if we're gonna do a round two, I'll have round two,
otherwise I can do those. I'll just make up.
Okay. Uh, alderman Bill, do you, you used
to three, you have no questions.
I'm gonna write this down. Okay.
He's gonna have through the chairs, through the chair.
No problem. Alderman and Spotter.
Um, do you mind if I interrupt one quick second?
It's, uh, eight tiffs, eight that are expiring.
Alderman Spotter followed by Alderman. Uh, SPTO.
Thank you very much, sir.
Uh, so I wanna refer to our
annual comprehensive financial reports here.
Uh,
That's the one I did not bring down with me, but
That is Okay. Um,
so looking at assets
and deferred outflows at the end of 2023,
our cash and cash equivalents were 2.7 billion
in 2024.
Same line cash
and cash equivalents for end of 20 24, 1 0.5 billion.
I'm curious if somebody can help me understand what happened
that we see such a decrease in our cash
and cash equivalence.
I believe some of that had to do with the spend down
of the ARPA money.
Um, you know, we had a big spike in, in, in cash
because we received that, that,
that money from the federal government.
And then we started to see, you know,
improvements in the economy.
But I would say that's a primary explanation.
Do we have a sense of where that number is today
or where we expect it to be at the end of the year?
Um, we, uh, we have a pre,
I don't, I don't have it with me.
We do have a preliminary, we just did a quarterly, uh,
financial report online audited.
So I can provide that to you to see the trend.
Okay. Um, I was also curious,
'cause you were talking about our rainy day fund,
currently standing at 50 million,
the unassigned rainy day fund, understanding
that there's the Skyway fund, there's various levels
of reserves that we have in place.
Right. Um, have we drawn down though,
from more rainy day fund in the last 12 to 18 months? No,
We haven't. We have not.
Okay. Um, I did want
to ask on the finance side of things.
At, at some point I had read that we were looking at
parking enforcement aids.
Being able to directly respond to 9 1 1 specifically related
to parking violations strikes me
as a real efficiency from the perspective of if I can get
somebody getting paid $51,000 a year to do a job instead
of somebody getting paid a hundred thousand dollars a year,
that's efficiency to me.
Um, do you have a sense of where we are in
that pilot comptroller
In the, in the pilot on, um,
It was gonna be within the 19th district
and I think another district looking at directly routing
parking violation 9 1 1 to parking enforcement aids?
Yeah, I, um, I believe, um,
we're in the process of having discussions.
I mean, my staff can correct me with, um,
with the police department about, um, doing that very thing.
Right now, we have, you know, several levels of input, uh,
for complaints, one of which is the 3 1 1.
We expanded to the 3 1 1.
Um, I, I know we just had a, do we have a hearing,
a subject matter hearing Joel, can you address that with,
with an alderman about this?
Very, I believe,
I believe it was a police counsel actually is pushing for,
uh, having the 9 1 1 calls routed on parking complaints
routed to, uh, to us directly.
Um, and I, I certainly would support that a hundred percent.
I don't know if we've piloted it yet.
I think it's being discussed, launching it as a pilot,
but certainly anything that takes a burden off the police
and police work, uh, you know, we would, we would support
What are the concerns related to that?
Excuse me? Are there concerns, technological,
logistical, um,
Are there concerns technologically,
Uh, um, does our,
does our technology permit us to currently do that?
Does it, does it, I I'm not hearing you well.
Does it preclude us from doing that? Or technology?
I don't know if I'm being, uh,
You're, are there any technological
impediments to us being,
Are they technological?
Are they logistical? Are they ideological?
What, what keeps us currently from being able
to route these parking violation nine one ones
to our parking enforcement aides in the field?
Um, I, I, I don't believe there
should be any technological in impediments.
I mean, it's certainly, um, you know, it's just a matter of,
of having, um, a way
to have the call flagged
and then just moved to a different, uh, intake site.
So, you know, you can get 9 1 1 to 3 1 1
to our parking enforcement officers.
Okay. I appreciate that, sir.
I will, uh, follow up on that point.
Um, I did wanna understand from a place of
persistent vacancies
and the midyear budget report is very helpful.
There's, well, I'll close on this question.
There's a variety of levels of percentage of vacancy
across varying departments.
Of course, this pale, like the number one by number of PO
positions vacant is still the Chicago Police Department.
But to see the Department of Technology
and information at 55% positions filled
is, I'll say distressing
because I feel like it, it is our information technology,
IT investments that drive efficiencies for the city.
Do you, do you have a sense of what we're doing to
at at least bring them up to their peer departments?
Um, thank you for this question.
I think, um, if I could say anything about the midyear
report, um, I think it is a great place
to start the questions, right?
Um, we need to take data as data in itself.
Um, it can never contextualize everything for us.
And I think that because it's a good starting point,
it then provides you the ability to ask questions like this.
So I appreciate the question.
Um, I think taking into context a couple of things, right?
So DTI was reestablished, um, last year, right?
And so one that means that they were sort
of starting from scratch to, to get themselves, uh, back to
where we need them to be.
I think the other thing is we have
to place them within the context of the larger, uh,
workforce when it comes to technology positions, right?
This is an incredibly difficult position, um,
and department to recruit for one, not only
because technology positions in the private sector pay a lot
more than public sector positions, um,
but just generally it, there is a labor shortage.
Um, and so I, I think that that's something
that you're probably seeing in these numbers.
So I, like I said, we provide this information so
that you can dig deeper and ask those types of questions.
You know, Nick, uh, the, um, chief, uh,
information officer does work pretty closely with DHR, um,
to figure out ways to do better, uh, recruitment
and to get more people into DTI.
Um, but I think it'll take innovation, which is funny
that we're talking about innovation when it comes
to DTI innovation because there are so many pressures
and limitations on how we hire, right?
It, I can't just go to a, a hiring fair
and say, okay, great, you're great.
I'm hired, you're hired, and start tomorrow, right?
There's all of these
I'm aware, I'm Aware of that. Yeah.
So I'm just saying like, I think it's,
I think it's important for us to take these numbers
and put them into context, right?
You could say the same thing about CDPH.
We understand how difficult it is to hire a lot
of the positions in CDPH
because of the pressures on the entire medical industry,
not just in the city of Chicago,
but throughout the, the country.
And so, um, when, when these departments come
before you, I think those are really good questions to ask.
Like, what have you done?
What are some of the things that we can do, particularly
for your type of positions,
given the broader implications happening within your
industry, I think is a great question.
But, um, you know, I think take that into context.
They had to reconstitute themselves from being a part
of another department,
and they also have, have microeconomic pressures on the type
of positions that they hire into.
I have more questions. I'm at time.
I will follow up when information
and technology is in front of us. Thank you,
Karen. Thank, thank you. Uh,
thank you Chair Lua next to, uh, chair
Spto, chairman Mann, this
Chairman, Chairman Spto.
I see, I, I see you put the spot on me together this way.
It don't mix us up. So, uh, thank you Chairman. Tomato,
Tomato. Thank,
thank, thank, thank you all for being
Hereto.
He did that on purpose. Thank you all for being here.
I just have, uh, one simple question as for the comptroller.
Uh, first I just wanna say, um, just wanna thank your, uh,
your guy that was holding the fort, uh, Mike,
uh, Joel Flores.
I don't, I don't think I bought it him much,
but a couple times he was very responsive to me.
And of course I'm always calling Chuck nowadays,
and I'm surprised more people don't call him
because of the thing I'm gonna be talking about.
So, um, last year, um,
I don't know who's gonna answer this question,
but last year I believe we put 20 extra, um, uh, uh,
parking enforcement aide in there.
And, um, do we have any numbers on that?
I know you said like they make roughly around 50 and they,
and they bring in about 4 75.
So, um, I certainly,
and I'm, I, I can't imagine many people would probably,
the one thing we can all agree on in here is we need more
parking enforcement aids.
I have a big problem in my ward.
I'm a border ward, and there's some of my colleagues
that are either downtown or ballpark wards.
Um, so, um, so as far as last year,
can you just gimme the numbers that, those roughly,
if you don't have it, that's fine.
Uh, you gave me offline the revenue.
We brought in with those extra 20, we did put 20 on, right?
The Annette, was it 20 we put in extra, uh,
In last year's budget?
Yeah. We added a 2020, um,
I think it was in the contract, um, the last contract
that, um, that DOF has in place.
So when we added the additional, um, the additional funding
for not only the parking tax,
but also the additional parking
and speed cameras, we added additional, um, positions, uh,
within DFS last contract.
Right. So that, that,
that's a big financial winner for us.
So, I mean, do we have any idea with the 20 more,
how much more we made this first half of the, of this year
as, as opposed to the first half of 2024? Yeah.
Well, so we, um, at,
at present we have 93 Parkman parking enforcement aides.
We have 14, uh, in the queue that are being hired,
that would bring us to 107.
We're augmented by, we're augmented by LA
for the weekends and evenings.
Um, you know, my, my attitude is, uh, um,
we should be hiring more people that would be subject
to the 2026 budget.
Um, you know, the only constraint is, um, is supervision.
You know, we would, we would probably have
to add management resources if we add, uh, quite a few
additional, uh, parking enforcement aids.
But, um, you know, to me, all these things, uh,
that are revenue positive, uh,
we shouldn't be investing in including the technology.
Absolutely. I mean, seeing the smart streets, uh, you know,
that 180% increase, we should be doing more of that. Okay,
Thanks. So, yeah, so I
don't, I don't have a parking
meter problem on my ward.
I don't have any parking meters,
but mine is more of a truck problem,
a residential permit parking thing.
I would love, love to see something like this,
and I'm sure everybody would agree with it.
We, we all get a,
a designated parking enforcement aid to us.
We could say, you know, call 'em up
and, Hey, Johnny, we got a problem on this street.
Can you, you know, target it?
Can you, you know, put a special attention on it?
So, um, but,
but that's all just curious how, how well that worked for us
and, uh, uh, look forward
to the budget hearings and trying to put more on. So,
Yeah, I mean, uh, uh, one thing I do think we need
to do is raise our booting fee so
that even accesses a deterrent.
Okay. Thank you. Thank you, chairman.
Thank you, alderman. Um,
I think you raised a, a good point.
Uh, I think a lot of us have the pains of parking
and parking enforcement.
Uh, I think it's probably the number two
or three call that comes into my offices
around parking enforce, especially those wards
that have a lot of RPP.
So, um, and I think this is, uh, you know, something
that, uh, we, we should take a deeper dive into.
I even suggested the, uh, title of parking superintendent.
I know the, uh, budget director doesn't like that,
but we, we, I mean, but,
but we all understand that, uh, dealing with that, you know,
helps people when we, when they see action on that,
they can, uh, help and do action on other items.
So, uh, go ahead, vice chair. Yeah.
Because we're on the topic.
And that was the topic of my last set of questions.
Can I just through the chair, uh, can we get the,
a breakdown of the revenue
that we get from parking enforcement?
So I'm thinking citations
and Sundays, like, I'm curious
to know, like what we're getting.
I know that last doesn't get that.
Um, and then do we ever look at 3 1 1 data on complaints
about parking enforcement needing parking enforcement
to sort try to inform the number
of parking enforcement people we're, uh, we're hiring,
because I know we,
we enter in new RPP zones every month, right?
Depending on what, wherever it is in the city.
But I'm wondering, is that commensurate, uh, with the number
of parking enforcement personnel?
It, it is not. And, and I I say this
because the, there is no real conversation
between enforcement and RPPs
because the police department consistently ask us, I mean,
at least in, in, in my ward,
and I use 11 district as an example, we have to tell them
that, Hey, there's a new RPP in this area.
Would you please enforce?
Now, of course, parking enforcement
isn't on the top of their list.
Um, and then we have to, you know, kind of work
through bringing additional resource to the area.
And it kind of goes back to what Alderman La Spota stated
earlier with the pilot.
And, and again, that pilot, I think just clear committee,
um, and is, is something that will be coming.
I think the council in our, at our next meeting in, uh,
I think it's two north side districts, I'm not mistaken.
But again, those are the types of, uh, questions
and innovations that we, we need
to be thinking toward on, on enforcement. So,
Yeah, just, just to add to that, we,
we do use the 3 1 1 data for, um, you know,
the data driven enforcement.
We're using those complaints to determine
where should we should deploy people.
So we do use that. And the, and the 9 1 1 is right.
It is not a pilot at this point.
I believe an alderman has introduced an ordinance to
have a start, uh, looking at using 9 1 1 and,
and diverting it away to parking enforcement needs.
Thank you. Alright. Ought be Moore McQuinn.
Thank you. Um, before I get to my questions controller,
uh, as we go into this budget series, I wanna make sure
that we all succeed
because when we all succeed, the city succeed, um,
and I don't want you to be bombarded during, um, budget.
'cause it really get kind of, um, crazy.
Um, make sure if you don't have the answer,
your staff have the answer to some of many questions
because the, the team is not going
to be in a situation when I say the team,
meaning my colleagues where I
keep hearing, I gotta get back to you.
So take that as constructive not to, um, you know,
be demeaning, but as constructive.
And so make sure your team have,
if you don't have all answers, that they be ready
to address some of those, um, questions.
Um, the, the other part I wanna talk about,
and these should be, um, hopefully straight answers
and not, um, long questions.
I wanna, um, and,
and you may be giving it through the chair,
I just wanna make sure from what Al McDowell talked about,
'cause it was one of my questions,
um, so I just wanna be clear.
The 1.25 billion, um, um, economic bond development today,
you said we, we, we authorized 82 million.
Correct. And of that 82 million that's been authorized,
um, $6 million, when you say gone out door, meaning,
and I'm taking that as that we've, um, spent, how much
has been, um, expended, if you will,
or how, how much of that 82 million it, it has been, um,
authorized in terms of money out the door?
We got a contract authorized 82 million authorized bond.
Is that we, that's what you just authorized,
but I, I don't know if we hired some contractors do any work
because 6 million out the door sounds little,
and I know you said there's more coming in.
So of that, how much has actually been, um, expended
or, you know, authorized for expenditure?
Um, so as, uh, CFO Jaworski mentioned, um,
of the 1.25 billion that has been authorized,
they have issued bonds for roughly 80, $85 million.
Right? Um, of that 85 million that have, uh, is
It 82 or 85 or just roughly,
because I had wrote 82 is 82 million,
82 million.
Um, of that 82 million, what has been invoiced
and has been spent is $6 million.
But they have, because they issued bonds for $82 million,
that is reflecting the allocation for projects, um,
under the bigger umbrella of 1.25 billion.
So they have allocated the $82 million, uh,
through projects, uh, some of which are still going through
signature of contracts,
but doesn't mean that they haven't allocated
or know what that those dollars are gonna be used for.
As you know, capital projects take a much longer
time to get done.
Um, and so it's not as if every day we're paying invoices on
it, but it doesn't mean that the project
and the work isn't being done.
Yeah. So $82 million worth of contracts have been signed.
When I say contracts, we have
to approve a contract to do a job.
So $82 million have been approved already.
Uh, they have been, uh, approved.
I don't know the exact status
of every contract and if it's been
Signed, I'm just saying like if I'm, I'm, I'm building a,
a garage or I'm building,
but 82 million have has been approved.
Yes. Okay. Can you provide, uh, the way that 82 million
approval by Ward and what projects those are, please?
Mm-hmm. Um, the, the other one question that I had
was, um, so I can be clear, the 4.9%,
um, through, um, may on our projections,
and then you said through July five point, um,
2%, where am I looking at?
Um, um, on our, on our projections
through July, is that all, was that just July alone
or was just all through July?
I just wanna make sure my through
Through year to date, through July through
Year to date July. And
can we expect that's, that's good.
So thank you for the work you all are doing.
So can we expect those numbers
to be increasingly better throughout the year since, I mean,
we, we were looking at 4.9 through May
and we already had 5.2 through July,
so it is trending in the right direction.
Yeah, so, um, in, uh, the forecast that we put out, um,
last month, we project that a number
of our revenues will continue to outperform budget,
especially the local taxes.
So the ones that we control, um, we anticipate that'll, uh,
come in about a hundred million dollars over budget.
The, there's a counterbalance to that,
that we're experiencing the state controlled, uh, revenues,
the PPRT
and the emergency medical transport, we anticipate those
to come in below budget.
Um, but those are being offset by the over performance
of our locally controlled, uh, revenue sources.
Obviously the other bigger one when it comes
to revenue is the uncertainty around the MABF, uh,
reimbursement from CPS.
So there are large counterbalancing uh, negatives
to the outperformance of a number
of large categories as well.
Okay. And, uh, comp controller beski, the 600
and, um, um,
50,000, um, uh, um,
was that a number of people or number of dollars?
I can't remember. I'm looking for my notes. I'm sorry.
I should have hear that's the number of people
that the number of people.
And it was 300 million you said. Right.
So of that, can you give us a breakdown, um, provide
through the chair, the, the, those people
and those dollars amount by Ward.
So if you got 650, how many came out of you?
Do you have that breakdown by ward and dollar amount?
Yeah, we, we should be able to do that, right?
That through the chair. Thank you. That's all I have.
Thank you. Alderman Moore?
Uh, Alden Quinn, uh, followed
by Alderman, uh, Martin.
Thank you, Mr. Chair. Um, budget director.
I, I've heard loud and clear from my residents they're not
interested in the grocery tax.
Can you give us a status as to where that's at?
I believe it's currently in the finance committee for
Consideration. Okay. And
what's the administration's position on this?
Is it, is this an ordinance that's gonna move?
Um, it's an ordinance that we've introduced, um,
to City Council for consideration.
We believe that it's, you know, an important, uh,
revenue source, uh, for the city.
Um, and it has, uh, it, it keeps in place a revenue
that exists today and a attacks that exists today.
What, what sort of revenue are we talking about?
I'm Sorry? What sort of revenue are we talking about?
The amount? Yeah. Um, so we anticipate in 2026
that this would bring in $80 million.
Okay. And, um,
there's a deadline on this, is that correct?
We would have to be able to tell the state
by October 1st if we have passed local
legislation after that.
If we pass it beyond October 1st,
it will not go into effect locally until July of next year.
Okay. Okay. That's all I have for now. Thank you. Mr.
Um, just to be clear, um,
this is not a, a new tax?
That's correct. Okay. This is, this exists today?
That's correct. And this is just a
continuation of what exists today? That
Is correct. And if we
do not act to continue what exists then?
We, the only time we'll have an opportunity
to do it again, it will be in July. Is that correct?
It would, if we pass it beyond October 1st, um,
the state would not put it in effect in our
jurisdiction until July of next year.
Okay. Alright. And chairman,
could you turn back
Regarding this tax?
Um, it is not a new tax. Uh, does it affect Snap?
I'm hearing different points of view
that it does affect SNAP people.
It does not. I just want to be clear.
It does not, um, those who are on Snap,
uh, do not pay this tax.
All right. And do you know what the impact would be
on an average family?
Um, so the average family in the city of Chicago, um,
and we should also note that more than just residents
of the city of Chicago use our grocery stores,
but the average person would spend about 50 to $60, uh,
a year, a year of this tax a year.
Okay. Thank you, Mr. Chair.
Thank you. Um, you clear? You're done.
Okay. Um, alderman Martin, do I have any others for this?
Uh, round, uh, for, um, no.
Any, any others that are in, uh, Alden?
Mitchell, do you have anything? No. Okay.
Just wanna make sure we're getting everybody
go ahead. Uh, Auman Martin.
Thank you Chair, and good afternoon everybody.
Um, a few initial through the chair requests.
First, I'd like you to provide the largest
53rd party contractors as measured by payment received
by the city between January, 2024 and July, 2025.
Um, with regard to those 53rd party contractors,
I'd like you to provide a brief description
of the services they provided during this time period.
Identify any
and all of their contracts with the city
that are expiring in FY 2025,
and to note whether any of their contracts
that are being paid out in 2025
did not undergo a competitive bidding process due
to only one bidder being available.
Um, I'd also like to know through the chair
what budgetary checks, if any, the city has in place
to minimize city funds going to third party contractors
who are providing services that are also being
provided by being provided in-house by city departments.
Um, think about, uh, water management
or cdot, uh, is, is to examples
where you have simultaneously in-house
and contractors providing that work.
Um, would also like us following up on a few other questions
around finance general, um, to detail all the programs
and services that are being paid out of Finance General
in FY 2025, um, including,
but not limited to anything that is noted in the budget book
that was created in December of last year.
Um, following.
So, uh, moving away from through the chair requests, um,
and following up on the Ernst and Young issue.
Um, can we get the final recommendations from Ernst
and Young, um, shared with us
regarding potential operational efficiencies
and savings no later than October 15th of this year?
Um, my hope is to be able to provide that prior
to October 15th to members of City Council.
So that is a yes.
It's your intention to provide that, uh, outside
of unexpected things coming up.
Absolutely. Um, it's going back
to third party contracting issues.
It's my understanding
that currently the city does not have an evaluation tool
that it uses consistently across all city departments
to monitor the efficacy of each contractor's performance,
including substantive
and financial metrics
that the contractor must satisfy moving forward.
When can we expect the city to include this sort
of evaluation tool consistently across all
third party contracts?
Um, that's a great question.
Uh, thank you for that question.
Um, I'm, I, I don't have the response to you.
Um, I think that's, uh, something that I will follow up
with the chief procurement officer on.
Um, uh, you know, it is a, it, it is a good thing for us
to commit and to aspire to exactly what you're asking.
Um, I will be honest and, and, and,
and say that it's a heavy lift to move in that direction.
Um, but I think that it's necessary, um, as we shift more
to providing, uh, more, uh, information
and being transparent around not only contracting,
but other aspects of, of our operations.
Are you aware of any other cities that do this? No.
So we would be the first to your
Knowledge, we'd probably be, um,
we'd probably be trendsetters.
Um, there are other cities
that do things like outcome-based budgeting, uh,
which is not necessarily about contracts.
Um, they do variations of it.
Very few do outcome-based budgeting.
Um, but I don't know of any city that has, um, uh,
contract metrics that are, are, uh, applied citywide
Understanding that, um, part of the answer
to this question would be shared
by the chief procurement officer.
Off the top of your head, what are some considerations
that we would want to have in order to, one, have
a consistent through line across departments
and contracts, while also being able
to shape individual metrics
to suit the particular services to be provided?
So, um, for anyone that, uh,
that does performance metrics, uh, will tell you, um,
that it is a complex and nuanced, uh, exercise.
Um, and it's one thing if you're like in a company
that produces one thing to create metrics,
but as the city of Chicago, we are complex
and we also have, uh, varying mandates
and requirements that we're responsible
for not only under our ordinances, but state
and federal law.
And so, and then we have
different industries in which we work.
And so sitting down and having, you know,
an exercise where we literally think about
what are the metrics that we wanna have in place
for each area of the work that we do, and the,
and the vendors that provide us that service, that's gonna,
that is a pretty detailed exercise
and analysis that would have to be done.
And so, like the conversation that you and I had
before, ways that organizations
and cities tackle this is to do it, um, sort
of methodically, um, through each through line
of their operations in,
because if you try to do it
in every single operation at the same time,
you're pretty much setting yourself up for failure.
So you would pilot it and then you would then take on more
and more of your operations that way.
Noted. Um, one brief, uh, comment
and then, uh, I think a question, the comment being, um,
I understand that we're looking to narrow the scope of
what e and y is continuing to do is, you know, we get
to the end of this budget season and beyond.
I think this is the sort of thing
that if they haven't looked into potentially they
or another person in or entity in the industry could,
'cause I think this definitely speaks to efficiencies
that cut across every single department.
So I would hope that that would be a part
of future conversations.
And then if you could provide through the chair, um, a list
of the cities that you're aware of
that do the performance based budgeting
that you mentioned. Thank you. Absolutely.
Thank you. Um, I, I think, uh, um, chair Martin is,
is hitting on the key point from, uh, where,
where do we start in this conversation?
Because KPIs, I think are something
that we really need to be thinking about.
E especially in some
of our infrastructure departments in places
where we're spending a lot of money.
And, uh, even as we go into the 2026 budget cycle
and we start having conversations like, what does, and I,
and I know you're, I mean, it's no secret that, you know,
we we're gonna have to make some cuts, right?
Um, but what do these cuts operationally mean
and how do they, um, correlate to some of these KPIs?
I I'll just use a case in point.
If we make changes to, in, in CDOT
and say, today we can fill a pothole in seven days,
and if with this level we can fill it in 12 days
or this level, we fill it in 14 days, um, are we,
are we able to adequate adequately have that conversation?
Because we've gotta be able to translate
what happens from that point to
what does the service output look like in, in
what this level of expense reduction
or with this level of an even enhancement so
that we are able to make some, uh, I, I'll say some better
and informed decisions.
Um, thank you for that question.
I will say that, um, outside of, um, KPIs
that my team has put in place as relates to workforce data,
so, you know, things around like our, how, how,
how is our workforce aging?
Um, how many days do we see, uh, departments
with overt absenteeism?
Um, you know, how many sick days are, uh, employees,
uh, um, embarking on, um, the data
as it relates to operational service in the city
of Chicago does not, is not centrally managed or located.
Um, every single department has their own metrics
that they are, um, developing
and tracking and monitoring.
And so it's, it, it is not related currently
to budgetary outcomes.
And so, as you and I have had the conversation,
and as we, this is actually one of the areas that, um,
EY did an analysis for us on
and benchmarked other cities that are doing this.
And, and again, very few cities do this
and cities that do it, not all of them do it in the way
that is true outcomes-based budgeting.
Um, you know, this is something that I believe that a city
of our nature and our size could benefit from
to help us make decisions.
Again, it's not centrally located in my office when it comes
to the day-to-day operations of, um, a, uh, department,
but for, uh, cities that have shifted
to outcomes-based budgeting,
it does live in the budget office
to have those type of KPIs.
And you get dashboards, you get reports, you get, um, uh,
you know, as city council members, um, dashboards
that tell you how people are tracking against those KPIs.
Um, um, to help you understand the value that
that particular operation has in city, uh,
service provision.
But also if we're under
or over, um, especially if we're under, do we need
to invest more to get to the, um, the goals that, you know,
we all share?
Or, or is this not an area
that we feel we are the best at performing?
Are there other areas
and ways for us to support this without being
the ones that are doing this work?
So that's what, that's the value
of doing outcomes, outcomes based budgeting.
But currently, any performance metrics on an operational
level don't live in the budget office.
Um, they're, they live with a department,
Um, I, I'll I'll say this, and, uh, both,
and this is for both you
and I, uh, we tend to focus,
this is the committee on budget
and government Operations, just like your offices,
the Office of Budget and Management.
Sometimes we don't focus on the second part,
but the real, um, savings
and what we could accomplish is in
that second charge that we have.
And, uh, I, I really think that, uh, we as a city have
to spend a little more time
and put some resources behind, um, that function
because we, we, we know we cannot continue
to operate the same way, uh,
given the constraints that we have.
'cause it's just, it's just impossible to do such.
So, um, I, I definitely would, uh, along the lines of what,
uh, chairman, uh, Martin is, uh, stating that we need
to put some resources and some energy toward understanding
and then becoming more efficient.
'cause I do believe that there are many
efficiencies that we can find.
And I think the office, uh, if we call it the Office
of Performance Management
or whatever it is, could really pay for itself, uh,
with the efficiencies.
I believe that it will come across and,
and find, uh, as it, as we begin to kind of, uh,
take a deeper dive into, um, the operations of,
uh, various departments.
So, um, I didn't have any, uh, Autum Silverstein.
Do you have anything? You didn't have anything?
Uh, I think, uh, okay. Altman Bill, go ahead.
Thank you, Mr. Chairman. I just got a couple of requests.
Um, number one, uh, as it relates
to the fire contract,
how much money did we set aside for that settlement?
And will it cover the entire, um, agreement
for the fire contract?
We'll get that information to you through the chair.
Okay. So you don't know that
information off the top of your head?
No, I don't know it off the top of my head.
Hmm. We settled a contract and we don't know that answer.
The contract is still, um, uh, being finalized,
so I don't have it off the top of my head.
Hmm. Okay. All right.
Uh, secondly, can you provide through the chair, uh,
a breakdown of all funds being spent from CDOT Water
as it relates to every 50, all 50 wards, uh,
all funds, all money spent in all 50 wards
breakdown by Ward?
Um, I can, uh, look into if it's possible
to provide it in that manner.
Um, I don't know that we track it that way, um,
but I can definitely look into what's possible.
Okay. And that also includes the bond fund as well.
Understood. Thank you. That's all I have,
So, okay. Alright.
Well, if there are no other questions, uh, for, um,
the CFO Comptroller
and Budget Director, uh, committee will stand at ease
until 1:00 PM.
Um, we do have, um, lunch in 300 a for those who are, uh,
for hungry, but we'll be back at 1:00 PM with, uh, DHR,
um, with the, yeah.
Department of Human Resources, followed by department of,
uh, uh, procurement service.
Yes. Ing right.
That went well. I was, yeah,
Sir.
Sign gonna close you
when I'm touching you.
I can Alderman Mosley in
the house,
the stranger we know each other.
I'm so glad.
Put your heart. It's no rational reason.
It just knock and makes you weak as good.
We must believe it in our heart.
You it.
What's this mystery?
I can feel the,
when I'm close to you, there's a feeling
for people only.
It just strangers.
We know each other and I'm so glad
what we
rhyme, rhyme, he said, just comes and makes you weak.
We must believe it.
There's no rhyme. It just comes and make
you find it.
What's this mystery of?
And I can touching
when I'm See you, there's a special life with
only
with the strangers, the sustaining one.
Another, I,
it just comes and makes you weak.
Must
gonna put your heart deep inside it.
There is no, it just drop weak.
What? Our heart.
Hi there. This is a sports center.
We got a quarter hour to cover everything you need to know
because the tension is so real. You can feel it.
We've got you covered on all of it. Yes. What? What?
We are back at it tomorrow.
See you, girl.
I hope you Oh, think you can say amen.
My life beat with you. Kiss me.
Drive me crazy. Would you do that
as though we were
you
and I couldn't live without you in my mind.
You keep me alive. You cannot
love
and no power, sir.
Can't keep us apart.
You breathing by heart. Be heavy
what I'm saying.
I live, I
alive
power baby.
Every word I say. Yeah.
That means I love you, baby.
And that means that I,
Good afternoon, uh, clerk's office.
Ready? We're good. Internet. Okay.
I, I just wanted to make sure. Uh, good afternoon.
We're back in session. Camino
and buzzing Governor Operations, uh, this, uh,
session will be with Commissioner Sandra Blakemore
of the Department of Human Resources Commissioner, welcome.
If you wanna introduce your, uh, team and yourself,
and, uh, we'll proceed.
Uh, I have to read you open a statement. We'll proceed.
Good afternoon. I'm Sandra Blakemore.
I'm the Commissioner for Department of Human Resources.
Next to me is Katie Doyle, my first deputy.
And then Raquel Rodriguez, Northern Managing Deputy
Strategic Planning and Administration.
And then finally, Carmen Rocha, deputy
of Finance and Administration.
Good afternoon, chairman Irvin, vice Chairman Lee Lee
and members of the City Council.
I'm Sandra Blakemore.
I'm the Commissioner of the Department of Human Resources.
Thank you for allowing me to join you today and present
and discuss the 2025 midyear budget for the Department
of Human Resources.
DHR is a partner
to the city operating departments in hiring,
labor relations, training, and employment policies.
The Department of Human Resources is composed
of four divisions, employment services, compliance,
strategic planning and administration, and policy
and Labor relations.
DHRs Employment Services Division works together
with departments in hiring talent for the city's operations,
the Department of Human Resources Recruiters promote city
employment at community job fairs, screen applications,
and create referral lists for departments.
DH R'S Employment Services Division has screened
and processed 126,682
applications year to date through August.
In partnership with operating departments,
DHR has hired 2,701 employees year
to date through August.
In partnership with departments, DHR has led a number
of measures to streamline the city's hiring process.
We have reduced unnecessary testing over the past two years.
We cut 40% of employment tests.
DHR has also moved key job titles
to end interview assessments to reduce time to hire
DHR added QR codes to our weekly city jobs flash
to make applying for jobs even easier.
This compilation of job postings was sent out
to every ward office and other key stakeholders.
DH R'S classification
and Compensation section has led the work in the
skills-based hiring initiative
to expand access to city jobs.
All job specifications will be updated
with the experience equivalencies by the end of October.
Our compliance division oversees the Disability Office
and the Equal Employment Opportunity Office.
We have strengthened our capabilities in the disability
office with a new disability officer and increased staffing.
The disability office has managed 965 accommodation requests
year to day through August.
Our EEO division investigates complaints across city
departments and has reviewed policies
and practices to ensure alignment with best practices.
Our strategic planning
and administration division oversees the department's
budget, information services
and training in partnership with the Department
of Streets and Sanitation.
UNA 10 0 1 and C-P-S-D-H-R expanded the
Laborers Trainee program.
This summer, this 12 week program gave a hundred recent CPS
graduates valuable work experience.
Our training section launched the first Citywide
Employee Performance Management program,
which provides departments with the tools
and support for employee performance reviews.
We also developed a new onboarding training
to provide a stronger new employee orientation.
The Policy and Labor Relations Division provides guidance
to departments on labor issues, the city's personnel rules
and operating policies.
This year, our labor relations division worked with AFSCME
to consolidate 27 titles and 14 titles.
This effort enables DHR to hi hire titles faster
through Universal Postings.
DHR is committed to delivering the highest quality
of services to city departments and the citizens of Chicago.
I would like to thank the city council
and city departments
for their ongoing partnership in these efforts.
I would also like to thank our employees
for being diligent partners to city departments.
Chairman, this concludes my prepared statement.
My staff and I are pleased to answer any questions that you
or the members of the city council may have
regarding our departments mid-year budget.
Thank you. Uh, thank you, commissioner.
Um, this is a question that I, I'll be asking, uh,
every department that, that comes before us.
Um, given the, uh, financial pressure that the city is going
to face, uh, well continues to face, uh, what does a
expense reduction, uh, in the range of three, four,
5% look like in your department?
What does that do to, in your case, time to hire?
Uh, do you know or understand, like, uh,
and we just previously talked about these key performance
indicators, like how long does it take to hire a
streets and sanitation worker?
My assumption is that there are different times to hire
for different positions.
Right. And what does these, uh,
potential expense reductions, uh,
can we potentially quantify the time that it would take you
to get the work done based on the fact
that you may have less resources to work with?
Um, yes. Um, I don't wanna get too far into the 2026
budget discussion,
but again, um, we've made, um, several, uh, steps
to improve the overall hiring process this year with, um,
the 40% reduction in testing.
'cause testing would take six to eight weeks.
So by cutting out that, that, uh, improves the overall,
uh, hiring timeline.
And then with title consolidations, uh, again,
that enables us to, um, hire faster by not having, um,
you know, a broad range of, uh,
titles in a specific section.
Um, as well as universal postings.
We've been very successful with the infrastructure post, uh,
portfolio and having universal postings, for example.
Um, we can now post for a carpenter
and all of the infrastructure departments
that use a carpenter, uh, feed off of that one posting.
So that makes it faster.
So if you want to speak from an efficiency standpoint, uh,
how has the number of days to hire changed?
Can you quantify the number of days
to hire based on these consolidations, uh,
universal postings
and other items that it,
that your department has implemented?
How has that brought down your, your, your time to hire?
Um, it's challenging to get a good number for the number
of days it takes to hire.
Last year we were around 103 days,
but, um, we have had two hiring freezes
in the past 12 months.
So those requisitions may carry over, so it looks longer.
So, uh, I think once we have some better, um,
information systems, we could,
you know, have that number easily.
But right now there's just so much noise in the number, um,
given, um, the hiring freezes we've
experienced over the past year.
Okay. That, that's, that's a fair statement.
Uh, any questions from the body? Aldo followed?
Alderman, um, Moore,
Thank you Chairman. Uh,
thank you Commissioner and the rest of your team.
Just, just thought of one question, uh, pertaining
to the hiring freeze for this year.
So if, for example, streets
and Sand, um, needs 10 people, can you not hire 'em?
'cause 10 people retired or, or whatever.
So how, how, how does that hiring freeze work
for us with stuff like that?
So, do we keep up with attrition
or No, if our number was for Streets and Sand was a thousand
and we're down to nine 90, can you hire 10
or No, that's it. We can't hire anybody.
Um, I'm gonna have to defer that to the budget director.
Oh, okay. Because, um, again, um, OBM, um, is in control
of the vacancies and, you know, departments would work, uh,
with OBM in terms of their hiring needs
during this freeze period.
We would continue to execute our overall, um,
DHR hiring process.
Thank you. Thank you, chairman.
Okay. That's a good question though.
We'll, we'll get that answer, uh, from, uh, OBM, uh,
in relation to the attrition
question that, that you bring up.
So, okay. Uh, alderman Moore.
Thank you. Those are the long questions.
That was the question I was gonna ask,
but I just wanted to add something on top of that.
And that was with the, uh, program with the CPS students
through, um, which was,
I think was, was an excellent program.
I had several, a couple of young men reach out to me
who were excited about possibly coming on,
and I think they applied,
'cause I think it was like 50 spots open or something.
And so they were all excited, but then they called me
and said, ultimate, they saying it's a freeze.
So does that impact them?
Because I didn't know how to answer that.
Um, no, that one, um, is, is still open.
Um, so, um, that job was posted earlier in terms of the,
um, labor position.
So they can still apply for that position
And they will get hired if, if they chosen, if they chose,
They go through the, um, hiring process.
But that's still open to be hired. Okay,
Thank you. Because I,
I, when he, when he told me that, I was like,
I, I gotta find out.
So thank you so much and thank you so much
for always being accessible, um, you know, to, um, you know,
ask, um, to take any questions
and, you know, always getting back
to us. I appreciate you so much.
Thank you, alderman. Alright,
Thanks. Thanks, chairman.
Thank you. Uh, going back to the question
that the Alderman Moore raised about the, uh, the laborers.
So you all are still processing people, uh,
through various processes of, of, of the city,
but when you're getting to the actual point of execution of,
you know, hiring someone, that's where the,
the hiring freeze has stopped
because I, my, I guess my real concern is that if we put all
of this, if we stop the process,
then when you start the process back,
then you got all these steps
that you still have to complete.
So are you all still working the hiring process?
Uh, even though we do have, uh, some level
of a, of a freeze in place,
Um, well, as you know, there are certain, um,
positions which are still ongoing, such as public safety
and revenue generating positions.
But for other positions past the certain date, um,
they were held, we, we, um, took down the postings
so no work would be done on those positions.
So even though you, so stuff
that was in process
continued is essentially what you're saying.
Some, some did that were,
if you were at certain interview stages
or you given conditional offers, they weren't,
um, uh, rescinded.
But in essence,
you all have stopped active recruiting on certain spots.
Yes. Okay.
Um, and you will essentially, I would assume, hold
that position until further notice?
Correct. Okay.
Now, uh, and this is just in your professional opinion, uh,
how long, when we say go then, does that then take us
to get back to a point where you can hire somebody,
which I think kind of goes back to the total time
to hire from posting all the way
through getting them into the door.
How, what is that time period on average for typical jobs
with, with the city of Chicago? Sure.
I can, um, step back
and walk you through the, um, top line
of the whole hiring process and the roles
and responsibilities of different departments.
Uh, first hiring starts with an operating department, um,
deciding what position
and when, um, they wanna fill that position.
They would go to OBM
and request that OBM open up the vacancy so
that hiring can occur.
And once that is approved,
operating departments would then send in their request
to DHR to post the position,
and then DS DHR would post the position
and then, um, provide a referral list
of qualified candidates to departments.
Departments, then set up their, uh, interviews
and, um, make their hiring selections.
And, and typically, uh, you said,
was it a hundred, 150? It was like
103 days last year.
Okay. And what was that number here previous?
Um, I don't, um, I don't think the
team had that number Okay.
Before I came.
Okay. So, um, again, a hundred and 103 days.
The next question is around the, the centralization of,
of HR services.
Now departments have HR mechanisms in their department,
and then you all have, you all are quote unquote hr.
Um, would it be advantageous to us
to centralize the operation of HR so
that there's consistency across, uh, across the city?
Um, I can set the stage of what we do in DHR.
Um, DHR. Um, we have 122 positions.
Uh, 50% of our positions are in recruitment,
which is not in any other city department.
These are recruiters, recruiting coordinators.
Then we have about another 25% is compliance.
And that, um, those are the people that oversee the EEO
and disability offices.
And that's, um, not run out of any other department.
And then we have a small group of, uh, training
and records, um, information systems group
that makes up the other, uh, 25% along with, um,
a small policy team.
So, so there's not a lot of duplication across what we do
and what city departments do.
If you think of DHR, we create the policy
and the departments have staff that execute the policies.
Okay. Um,
and I, I, I guess the question is around like,
um, I guess consistency.
So from your perspective, you all are not, uh,
duplicating anything that's happening in the department.
And from the aspect of, I guess it's more
of an issue of consistency and,
and how, how is that monitored?
And with you all being the Department of hr,
do you all have any oversight, uh, capacity
for departments in their hiring
and making sure that they are, uh,
following the necessary steps in, in the hiring process?
Well, with respect, um, to hiring,
we still have the inspector general providing oversight
to the whole, um, hiring process at the city.
And, um, you know, our recruiters ensure that, you know,
what we are doing is, uh, following the proper, um,
processes and procedures.
And I think as we move more into the 2026, um,
budget sessions, um, we could talk, um, you know, about,
you know, thoughts about centralization
and decentralization.
Well, we, we, we trying to get a preview. So, uh,
You know, I'm trying to save it for,
uh, you know, October.
Got it. Got it. Any other questions for, uh, hr,
Kor, Alden Martin,
Thank you Chair, and sorry for being late.
So if this was already covered, just let me know
and I'll, I'll go back and look at the video.
Um, good afternoon. Good afternoon. Good to see you.
Um, have appreciated working
with you recently on the Ineligibility for rehire list.
I think your team has over the last year plus
done great work with that.
Um, please keep it up.
Um, my question is maybe more of a high level one
and probably will take more than four minutes to get into,
so happy to talk offline about it.
But since you're here, um, I'm, I'm curious
putting the hiring freeze aside.
'cause as Chairman Urban mentioned, I recognize how
that stop and start can negatively impact your departments
work to speed up and, uh,
and improve the ways in which we are feeling more
of these vacancies, which to be clear, we're doing right.
If you look year over year,
we're seeing fewer persistently vacant positions,
which I think is an indication
of your good work and the work of others.
Um, how moving forward, so
where there are more opportunities, um, to improve,
how are you seeing ways to narrow that timeline between,
as you mentioned a few minutes ago,
when the department says we've got a vacancy
that we wanna fill to when an offer is made,
because you know, better than most that that timeline
and a vacuum sometimes can be too long,
that there are times when by the time, uh, an offer is made
to somebody, they've accepted an offer from someone else.
We obviously have certain processes that we need to adhere
to, but where are some of the lower hanging pieces of fruit
that you and your team are saying,
whether it's like the coming months
or this next year, we see this as an opportunity
to knock a few days or a few weeks off of the timeline?
Uh, sure. Really starting first with testing.
Over the past two years, we've cut testing by 40%,
and testing was one
of the longer lead times within the whole hiring process.
Testing would take, uh, between six and eight weeks.
And the other, um, initiative we put in was
to create more universal postings.
Uh, previous, you know, depart.
Each department would be posting for their own carpenter,
but by having one posting that each infrastructure,
every infrastructure department could use,
that speeds up the timing and uses, uh, less resources.
And then title consolidation.
Um, our labor relations teams work really well
with AFSCME over the last two years to continue
to consolidate titles.
So again, um, we're not trying to hire for, um, five titles
that really all do the same work.
And so that, um, that took a lot of work out of the system.
Got it. And moving forward,
where do you see there being some opportunities
for exploration, even if it's too soon to say that, um,
those oppor those changes would be a good fit for Chicago?
Um, I think as we look, um, with our technology, you know,
we've been working with the enterprise resource planning,
uh, project because, uh, getting our technology up to speed,
we will, um, drive efficiency for the department.
Can you say a little bit more about
enterprise resource planning? I'm not super familiar.
Uh, well, I would defer to, um, the Department
of Technology and Innovation,
which is a lead for that project.
But, um, my, um, dream would be
to have one information system where I can track
someone from their candidacy on through their, um,
becoming an employee at the city.
Right now it's two different information systems.
Okay. Um, any, anything else
that comes to mind immediately?
Uh, well, we, we'll continue, always continue to look at,
you know, um, testing that we can take out of the system,
um, and creating more universal postings.
We had great success with infrastructure
and now we would like to look at other department
portfolios to work with us.
Great. Um, last question,
and if you, if it's better to respond
through the chair, that's fine.
I'm curious if you have averages, whether it's across all
of the city or particular departments of
how long it takes to fill a position.
Right. As I said earlier, our challenge this year was
with, um, having two hiring freezes in one year.
And we don't have a system that tracks it well.
We, we do have to do everything offline in Excel sheets
to try to understand what the timing would be
by looking at the different hiring requisitions.
So there's just a lot of noise right now, um, in the data.
So I didn't feel comfortable in providing a number.
Okay. Um, perhaps we can talk offline to discuss the data
as noisy as it may be.
Just kind of curious how that compares to prior years.
That's all. Thank you, chair, chairman.
Thank you so much, chair.
Um, I mean, it's noisy data,
but I, I I sometimes feel like we're making our own noise,
which is a conversation for another day.
But I, I had one question
'cause the previous panel was talking about,
um, the, the debts.
When people are trying to be hired by the city, they like,
uh, debt review that they have to do.
Thank you very much. Um, I was very curious on that front.
Do we lose a significant number of candidates for positions
due to that debt review?
I can understand if it's like one or two.
Does that have a significant impact on our ability to hire
quality candidates in a timely fashion?
Um, not to my knowledge.
I'm not, um, seeing anything that would say
that we're losing candidates in that final stage.
I think a lot of times when, um,
a potential employee finds out that they had, uh, a debt,
they would clear the debt, uh, and then come on board.
Okay. Thank you very much.
I will say, like, I'll say it now, rather than saying it
next month, um, the conversation that you
and I were able to have about why we have decentralized hr,
why it is beneficial and arguably more efficient
to have both centralized
and decentralized across department hrs,
that was very helpful
for me in understanding why these systems are
structured the way they are.
So I wanted to thank you in advance.
Thank you for that conversation
and I'll, I'll save a minute
for next month. Thank you Chair. Thank
You, alderman. Thank
you. You will not get credit for. Excellent.
Any other questions for our HR commissioner?
Going once. Alright.
Well thank you for, uh, joining with us today.
As you can see, I, I think there are some, uh, you know,
questions and, uh, things around time to hire centralization
and or decentralization of the process.
And I think that we'll probably take a,
a deeper dive into 2026, uh, conversation on these things,
uh, so that we can I, I guess, get a little more clarity
and figure out how these, um,
changes potentially impact your, uh, decisions.
Also, I do know, as I stated
before, uh, the expenditure reductions are, are, are real.
Uh, all of us will have to endure those.
And again, I just think we need to understand what
that impact looks like in your department on time to hire
or, uh, EEO complaints or training
or, you know, a myriad of things that you all do.
So I think it's gonna be important for us to understand
what these cuts look like to your department.
So if you could, uh, help us with that information, uh,
during the, uh, during the sessions, that would be great.
Greatly appreciated. Alright, thank you very much.
Alright, thank you. Next,
we're gonna have procurement service.
We'll give them a few seconds of switch out
and, uh, we'll open, uh, DPS with, uh, chairman mit.
Thank you, sir.
Good afternoon. Uh, we now have
before us the Department of Procurement Services, uh, led
by CPO Roberts.
Uh, if you could introduce yourself
and the people who are here in the well with you, as well
as those that are in the box.
And then after which you give your opening statement
and we will proceed to question starting with,
uh, chairman Mitts.
Uh, thank you Chairman Irvin. Um, good afternoon.
Before I get started, I would like
to introduce my team here today.
To my right I have Valerie Walker Walker,
and in the box I have Courtney Del, Judas, Giselle Cortez,
Charles Coleman, Michael Richie, Steve Loda.
Good afternoon. Again. My name is Charla Roberts
and I'm the Chief Procurement Officer
for the City of Chicago.
I would like to thank Mayor Johnson, chairman over Irvin
Vice Chairman Lee
and members of the council for allowing me to present
on the behalf of procurement services.
As the city faced an economically challenging year,
the Department of Procurement Services
prior prioritize procurement modernization,
improving the contracting process, enhancing outreach,
and increasing cost savings opportunity
to ensure every taxpayer's dollar is used
wisely and resourcefully.
The Department of Procurement Service started the year
by completing a spend analysis
and undertaking a comprehensive review
of the city contracts, procurement practices,
and vendor management.
These efforts allowed us to identify inefficiencies
and unnecessary expenditures.
DPS then begun updating policies
and procedures to reduce barriers of entry to ensure a fair
and transparent procurement process
and to maximize cost savings.
Internally, DPS focused on ways
to be more cost efficient to strengthen,
to strengthening the city's financial position.
We work to streamline operations
by utilizing pilot procurements
and focus group to identify some of these efficiencies.
Inefficiencies. DPS also work to digitize
all internal processes to collect data
and reduce paperwork, thereby speeding up processing times
further by staffing over 20% of DPS vacancies
and focusing on strategic resource AL allocations,
the Department of Procurement Service improve operations
without utilizing any overtime.
In line with the mayor's cut the TAPE initiative.
DPS also collaborated with stakeholders to
identify inefficiencies in the procurement process.
To reduce timelines further, we begin strategically sourcing
goods and services to strengthening the city's buying power
to drive down costs.
DPS also partnered with the Department of Inno,
the Department of Technology and Innovation to remove unused
and overlapping IT licenses,
resulting in roughly three point million dollars in savings.
In addition to the internal changes DPS partner
with our vendor community
to bring down prices we're feasible while ensuring critical
services remain uninterrupted.
Many of our vendors voluntarily collaborated with DPS
by providing price reductions on existing contracts, as well
as best and final offer on new contracting.
Helping secure the best value for the city of Chicago.
Collectively, the aforementioned strategies have already
resulted in over 6.5 million in savings
for fiscal year 2025,
and are projected to result in over a
14.5 million in additional savings in
the upcoming few years.
These savings will allow the city to continue
to provide the quality services our residents
expect and deserve.
While these strategies have
provided immediate relief,
these are not just short-term solutions.
I'm working diligently to transform the way the City
of Chicago procures goods
and services to create long-term sustainable
reductions in spending increased operational efficient
efficiency, and a level playing field
for all potential vendors.
Moving forward, DPS will continue to maximize savings
to free up resources to reinvest them where they matter most
and build while building a better Chicago.
In closing, I welcome your collaboration
and ideas as we work together
to navigate these challenging economic times.
My focus remains on identifying inefficiencies,
eliminating waste, while being transparent
and delivering optimal, optimal services to our city,
and creating inclu an inclusive environment for our vendors.
I look forward to continuing to work with each
and every one of you that are present here today
to build upon the progress we've made already this year.
Thank you. Uh, CPO Roberts, uh, chairman Mitch.
Thank you Chairman Irvin.
And thank you, uh, CPO Roberts
and your team, um, working along with you.
I do wanna know what would be, um,
what was the amount that was saved from the mirrors cut the
tape initiative that, how much have you saved there?
So, um, thank you for the, The efficiencies.
Oh, the in, thank you for the question.
Um, chairman, MITs, so from a, I don't have a dollar value
for the mayors cut the TAPE initiative, however,
and maybe if you're referring to the 3% right, um,
cost saving initiative so far, um, for up
to today's date, that's been roughly about $6.5 million.
Okay. Alright. Um, one other question.
As we've been talking about contracts, do you have numbers,
uh, based on ethnicity for where we at
with our contracts?
If you could share?
Um, thank you for the question.
Chairman mi So when you say contracting,
are you saying overall that we've procured with the
Overall City of Chicago?
Mm-hmm. Okay. I could get you that.
And while you're looking for that, you know, you,
and we've been working with Elder Ford who has, um, uh,
organization working with contracts.
He reached out and asked me to find out
about the zip code bound as restricted restriction system
is counseling our qualified people is how do that work?
The zip code boundaries?
Pardon me? What was that question again? Chairman mi
His question was, contracts are reaching out to me
to place to be, be placed in our community.
And the zip code boundary restriction system
is counseling our qualified candidates. Anyone?
You were talking about the local hiring preference? Yes.
Okay.
To, um, thank you for the question.
Chairman Minz, to answer your question, currently, um,
in our procurement municipal code, it allows us
to look at project area, um, on contracts
for contracting, opportunities for as, uh,
chairman Urban stated earlier for workforce diversity.
So right now on our contracts, we look at project area.
So if there's contracts that are happening at the Department
of Aviation, those are the contracts
that we will establish workforce diversity goals
on those contracts.
So if they're not building in certain zip codes,
um, you probably will see less
of project area numbers.
But we do, I I do have those numbers, um, outlined.
Um, how many contracts
and how many, what are the workforce diversity numbers
that are done in the areas?
Would you like that information?
Yes, but it is still not answering his question
based upon, uh, qualified peoples not being able to work
and there are own area
if we have this restriction.
So that may be something we can look at
What we've been doing at the
department procurement services.
We are looking at similarly
what they're doing at the
Department of Planning and Development.
They have CA goals. Mm-hmm.
Where they look at the area versus the project area.
Tell me this question.
Um, how are you working
with the technology innovative technology
to streamline the process for contracts
and how that benefit, has that helped in efficiencies,
uh, by working with them?
And is it help getting the bills paid? Keep was paid sooner.
'cause that was a problem. The contract's not being
paid on time. So
Thank you for your question, chairman, miss to answer,
the first part is we work, we work, we're working directly
with, we have an IT unit within our department
to streamline all of our IT related.
We've automated most of our projects to,
we've automated most of our, how we enter into
business within the different units.
So we don't necessarily work directly with, with the
Department of Innovation Technology,
but there's some things that they've created for us.
And I think that I'm gonna turn that over
to my subject matter expert, Mike
Richie. Hi, uh,
Mike Richie. Thank you for the question.
Uh, we try
to minimize paper touches.
We've created dashboards.
We're using data to drive decisions
and our internal, uh, support staff that,
that helps us, uh,
move contracts in the paperwork associated with that.
Um, that's how we, uh, streamline our processes internally.
Okay. My final question is, do you get the,
the data from the other departments in terms
of their M-B-E-W-B participation, uh, and,
and have a idea of what
the city overall goal is for minority participation?
Um, great question. Alderman Mitts, I mean, chairman MITs,
we are in the process of modernizing our C two system.
We've already implemented our C Mars from the Department
of A Aviation that we can review those contracts.
So we are streamlining that process.
We are in the initial phases, phases of that,
that we could monitor more
of the contracts within our authority.
So currently we have all of, uh, the Department
of Procurement Services contracts
that we procured within our C two system.
We've integrated the C Mars,
so we are working on the next phase
to integrate the other departments.
So we could have an overall, um, overall look outlook at,
uh, all the minority
and women participation
that's done within the city of Chicago.
All right. Well, thank you all so much for your work.
Thank you Chairman Irvin.
Thank Chairman Mitch. Um, just a, a follow up on something
that, uh, chairman MIT brought up on the preferences.
So, uh, what hiring,
I'm gonna call there are hiring preferences per the
contracts, um, exist and how are those, MA
and O'Hare is a very good example
because O'Hara's local area, of course, is pretty good swath
of the, the northwest side of Chicago,
let's just call it what it is, right?
And that's not an area where we generally find a lot
of economic depression amongst the constituency there.
Uh, what are we doing to help spread
the stuff even though it's at O'Hare Airport?
How do we get that to translate to, to somebody in Roseland?
How, how do, how, what are we doing to help that out?
Um, thank you for the question, chairman Irvin, one
of the things within our outreach unit, we are doing a lot
of outreach to ensure whether the projects at, uh,
the Department of Aviation, if this they're building there
or whether there's a project on the south side of Chicago,
we created their outreach unit to do exactly what you said,
get the information out
to the undeserved com underrepresented community
that have historically been left out at the city of Chicago.
So we've had targeted outreach in for the regions,
and I think we maybe have one more to, uh, conduct
by the end of the year, but targeted out outreach, um,
within the various different communities.
Then we collected data to see what areas that
have historically been left out.
We are in the community, we are educating them.
We have DPS alerts we use in all our social media platforms
to get the information out as we learn
by collecting the data that we have,
we're using those data points
to help us make better decisions,
to be more strategic in the outreach process.
So we've been in the community.
We've had in one of our first outreach that, um, we had
with the Ottomans was on the south side.
We had three of those outreaches.
And I think we'll be in the initial phases
of planning another outreach from an automatic standpoint.
So we are in the community, we're getting it out,
and we're educating and we're also working
with our strategic partners, some of the assist agencies
that we have relationships as we have opportunities,
we're working with those assist agencies so they ensure
that their members are aware of those opportunities.
Do you, have you, can you quantify or,
or do you have the data that talks about
local hires versus c hires versus non preferential hires
on contracts, uh, city related contracts
for construction and other opportunities?
Um, especially, I mean the, the airport is a huge
opportunity for, uh, for that to occur.
But, and then I wonder if the local hiring preference is
even meant and how is that played?
Uh, when you have all the other na
and I think it goes back to what Bishop Ford talks about,
Hey, I don't live in, I don't live by the airport,
so I don't get the chance to utilize that, uh, opportunity.
Uh, but at the same time, somebody,
he may live in the Cedar area or not.
And so that individual potentially becomes locked out
of an opportunity just based on their, on their zip code,
but they're otherwise qualified.
So, uh, is that data that I'm not, I don't expect you
to have it with you, but is that data
that you all could pull together
to give to us through the chair?
Yes. Um, chairman Irving,
we can answer that question through the chair.
Okay. And then are there any other hiring preferences on
contracts besides the local, uh, project area and Cedar?
Great question. Not that I'm aware of,
but I would definitely research that.
I'm gonna maybe ask Courtney my legal counsel
that if she's aware, um, in the box to answer that question.
Hi, um, Courtney Del Judas attorney.
Um, the other place we have, um,
local preferences would be on bid incentives.
Those would only appear on bids
and those, um,
do take into account either local manufacturing
or, um, having a local Chicago business as well.
And those are available on most of our low bid contracts.
And could you, uh, through the chair provide a list in the
bid incentives, uh, for, uh, contracts, uh, for,
for the city contracts as well?
Yes, we can do that. Chairman Alting. Okay.
I mean, chairman Irvin,
Uh, the only question that, uh,
I have is in relation to payment.
Um, payment is the,
is kinda like the millstone, especially
for our smaller contractors
and, uh, some people that just cannot afford to float
the sixty, ninety, a hundred twenty, a hundred fifty day
payment cycles that sometimes, uh, come about.
Uh, and again, and there's a cost to of,
to us for doing that.
Uh, if somebody knows that they're not gonna see their money
for a hundred
and 150 days, they have to budget that into their bid
and their and their costs.
Have we ever put any thought into, we,
we get an invoice from contractor X.
Now it may not have, all of its i's dotted and t's crossed,
but we know that we ask for a service
or something to happen to a great extent,
something has transpired.
While we may not be a hundred percent correct on everything,
we know that we owe them some money.
Uh, we know that they have provided a service to us.
So what would be wrong with us?
Either invoice comes in
and that we pay 60%, 70% of that invoice coming in.
And then as we true up the invoices, uh, and, you know, back
and forth to provide some operating cash
for these contractors,
because again, them carrying that cost is costing us,
we don't think it does, but they gotta pay interest on
that money that that's costing us.
So what, what would your thoughts be on doing
something like that?
And maybe you start out at 60%
and if your invoices are good, you graduate to 70% to 80%.
They're creating some level of, of a programmatic way
that gets our vendors their money, uh, in a, in a,
in a good time, which hopefully would bring down the cost of
providing some of these services
and some of these contracts.
Um, great question. Chairman Irvin.
Um, to answer, uh, the question, I'll start off
by addressing that we have established a working group
with the comp controller's department
and, um, individuals from his team to address that concern,
um, on how we could, uh, leverage the authority
that the chief procurement officer has to do
advance payments and direct payments to sub.
So we, in conversations on how do we look at that, one
of the things that I learned in doing the 3% exercise, a lot
of the vendors indicated, Hey, if you pay me upfront,
the bank is charging me 12 points,
I'll give you 10 versus the 3%.
So those are some of the things
that we're bringing up in this working group.
How do we address those concerns?
One of the things that is the infrastructure,
and we're also considering those types of things
as we address these concerns.
But that's on our list.
How do we le leverage the advance payment
that we have the ability to do
and work with the controllers on that process?
And then how do we do a pilot program with some
of the larger company and
or smaller programs that identify that
they would willingly give us the 10
or 12% that they may have to pay the bank if we paid them.
As you stated earlier, we also have a program
that we are doing at the pilot,
and some of these, they've already exercised at the,
the Department of Aviation, the 50 50 program as a pilot.
So I could provide some information to you on how
that's working, um, with the Department of Aviations.
But all the things that you've stated earlier,
we've taken on an advisement,
we've started the conversations the comptrollers has,
has worked closely with us to figure out
and supported this initiative to figure out
how we could accomplish the goal of
paying people in advance payment to minimize exactly
what you're saying, lowering the cost that the city
of Chicago is not charged as they are currently.
Oh, well, well that's, uh, that's, that's definitely, uh,
definitely good to hear.
Uh, any, any other questions for procurement?
Chairman Dow followed by, uh, alderman Moore?
Yes, thank you. Uh, how are you today?
I'm fantastic. Excellent.
Um, earlier today, alderman Martin asked, uh,
the budget director for a list of the largest 50 contracts,
uh, in 2324.
Uh, the services provided those expiring in 2025
and whether they were done by competitive bid or not.
And I'm wondering if you could, uh, collaborate
with the budget director to add information on there
regarding the extent
to which they have any M-B-E-W-B-E
or VBE metrics?
Um, thank you for the concern.
I, I heard the question with my team
and I, we've already started collaborating on the response.
Um, and we will work closely with, uh, the director.
Okay. Thank you All all. Yeah.
Okay. Alright. Uh, Alman Moore?
Yes. Um, how you doing?
Great, sir. Good.
Thanks for thanks for your service
and thank you for always being, um, available to, uh,
answer any questions, um, that we have.
Um, one of the things I wanted to touch on,
and I think it was, um, um, that touched on it as well,
but I, but I'm seeing it here in your, uh, report
and she was talking about, um, TE technology
and, um, one of the things that we do wanna focus on,
and we have been, uh, at least trying to, is efficiency.
And one of the things that I see here, which is good, uh,
you talked about, um, you, you guys, you, um,
removed, unused,
and over overlapping IT licenses already resulting in
$3.8 million in savings.
So when we talk, when I think when, um,
AIS was talking about how you're working with Department
of Technology, um, I think you're showing it here.
Can you, um, elaborate on that in terms of
what did you all do to get that 3.8 million in savings?
Well, we did a spin analysis
and we looked at the current contracts
that we currently have, whether it's at CDA for an example,
if we have a contract with VMware
and we notice that the contract is in place with City
of Chicago, different departments.
We work with that vendor to either co-term those contracts
or do a reduction in costs on providing us the,
the best services when we,
from a strategic sourcing standpoint.
So we did a spin analysis to look at, we have these many con
contracts across the city of Chicago to see
where we could have the most cost
efficiencies within that vendor.
It could have been for, or our Oracle licenses.
We had a huge, um, savings with them as we move forward,
um, in, in the stop stopgap initiatives with Oracle.
So that 3.8 is a, is is a, a nice number.
Are we expecting any more savings from that?
Um, by the end of the year,
We've been negotiating,
firms have been reaching out to us.
We have, uh, meetings that we are continuing to continue
to those conversations with various different vendors
that have reached out to us.
So yes, we could see potential savings.
Okay. And, and sticking to the efficiency side, um,
you said, uh, by staffing over 20%
of DPS vacancies, um,
you improve operations without utilizing any overtime?
Do we have what was used last year?
We had zero ti overtime.
Overtime last year. Last year. Okay.
And, um, ca
and then three, can you, can you gimme examples on, um,
how we, um, reduce the barriers, um,
to ensure fair
and transparent procurement process, um,
to maximize the cost of savings?
You, you said, um, here DPS then began updating parties,
period to reduce barriers.
What were some of those barriers
that you were able to reduce?
Some of the barriers that we looked at is in the lead line
pipe replacement program, we reduced the, uh,
requirement for bonding.
Mm-hmm. We are looking at insurance barriers of interest
for minority and women owned vendors to par participate.
We looked at how we policies that are created within our,
within our department to see
where there are barriers of entry.
We looked at policies, processes, processes,
insurance requirements, and the like.
And we'll continue to look at old policies when the process
of doing a procurement monetization
and documenting every process is we were doing focus group,
we're working with the community in the vendor unit.
We've had conversation with insurance types of firms
that have indicated that when we do these things,
these are the impact that it have on this firm.
So we are looking at our internal policies,
we are looking at our automations
as barriers of entry.
And we're looking at,
and we've updated those policies as I stated early,
an example where we've done that.
We've unbundled things where things were larger.
Similarly, what we did in the lead, uh, line program,
I'm gonna let at Jesse Jaelle answer our subject
matter expert to give you an example
what we've been doing in the construction space.
Tha thank you. Uh, Jaelle Cortez W
of Design and Construction.
So the, the Lead line program is a great example of kind
of like that unbundling initiative.
Um, as everyone here in council's aware, we,
a couple years ago had a large lead line program
that led out about the $147 million, $174 million, uh,
where it was a, a loan.
We worked with the water department
to reduce the contract sizes, uh,
where we basically put dip made,
did a set aside program construction.
Uh, we have the ability to set 'em up as SBI,
small business initiatives
or medium sized business initiatives.
We worked for over a couple years with the Water department
and the African American Contractors Association,
African American Plumbers Association, uh,
and a lot of other folks to bring them to the light.
In regards to the programs that we have put in place,
we help them, uh, with reducing the bonding requirements.
Most construction contracts, uh,
customarily carry a hundred percent bonding requirement
because it's a, it's an insurance
for the city in case of anything going wrong.
Uh, we reduce that to one third,
which means you have an overall reduction
of upfront costs on the contractor as well
as insurance requirements that are reduced.
Uh, professional liability was reduced from five
to 10 million, down to a million
or 2 million, which is also a reduction in upfront
costs on a contractor.
Um, as well as teaching contractors how to respond to bids,
how to respond to the programs, how to ask questions.
You know, we allocated some of the areas.
We have four contracts currently in the Q4 contract award
process, where if half of them are going
to an African American contractor
and the other two are going to a Hispanic contractor
and an Asian contract, uh, we consider that that a success
because it was two years in the making
to get this program rolled out.
And it wouldn't have come to fruition without working
with the CPO and
of course the Department of Water Management.
And it was a longstanding relationship.
And we're seeing the fruits of the labor now.
You're gonna see the payments of course, uh, and, and,
and little bit later on, probably in the next year,
you're gonna see those payments coming in.
But we've already identified with the help of the Department
of Water Management, uh, over 120 other blocks
that we may designate SBI, uh,
or even MBI, based on the type of work that's gonna be done.
And so we're still teaching,
even though we call it a success, we still have to teach
'cause there's a lot of handholding that needs to be done.
And that's what we're here to do.
Well, that's good and I appreciate that.
'cause that's, and water is a large area,
but even that, the fact that you start
with a larger area mean that you can, um, focus on using
that same, um, practice
and other, um, departments as well.
So that I appreciate 'cause we know it's
working and that it works.
Thank you. Thank you, chairman.
Thank you Alderman. Uh, to that, to that note, uh, the,
we had, we've had conversations proceed, uh, predate your,
uh, joining us, uh, CPO.
But, uh, we talked about a, a jock
program in water, specifically around lead service lines.
Um, that has been ongoing.
And, um, we have not made that to the finish line.
Uh, and, and I do believe that that would be a
excellent tool to help our smaller businesses.
I mean, and I, and I, I view the lead service line as a,
a 30 or $40,000 job that gets replicated a thousand times,
not a 30 or $40 million job.
I mean, if we look at it that way, it creates a whole area
of opportunity for some of our smaller, uh,
contractors to participate in.
And if a guy can do one a month,
then let him do one a month.
If he can do five, let him do five.
But again, I think it helps to build capacity of some
of our smaller businesses,
because even as an SBI, that's a, what's a million
or $2 million contract, if I remember correctly.
Um, and that's, that's a significant barrier.
But 40, 30, 40, $50,000 is something that, you know,
the small guys can handle.
So where are we on completing that?
I know there was an ordinance change that was required with
that, but I, I know it was something that was in dpss shop.
Um, thank you chairman for that question.
First there, we do have two programs.
We have SBI one that's for small orders under 2 million.
Then we have SBI two
or vice versa under the 10 million for the Jock
for job order contracting,
and I believe it's for prequalifications.
Um, that's under review.
We submitted that paperwork to Legislatives Affairs.
And I'm gonna turn it over to Courtney del Juda del
to answer the remaining part of the question.
Courtney Del Judas, attorney.
Um, thank you Chairman Irvin for the question.
Um, as, um, CPO Roberts mentioned, we are working
with IGA on getting that ordinance moved forward.
We're hoping once we have that moved forward, we'll be able
to get, um, even more small firms involved in this work
and to be able to do it, um, more quickly as well.
Because if the ordinance passes,
what it will do is it allow, it will allow us
to pre-qualify a group of vendors to complete, um,
not only Jock work, but other construction work as well.
That currently goes through individual bidding process.
So if that's able to be done,
we'll have a larger pool available
and one available more quickly as well.
So currently that, that ordinance is,
is in legislative affairs?
Uh, yes. Okay. Alright. Well thank you.
That's, uh, that's definitely good to know.
Any other questions for Pro procurement Chairman, Mitch,
I would like to know, um, one of, one of the challenge
with contracts is, uh, one was being certification.
Um, people were not getting certified
and, uh, wasn't getting the support.
Do your team have enough staff to support, um,
community who looking to get certified
by for procurement?
And the other Baron was, um, bonding capacity
and, and how are you working to help the smaller businesses
with being able to bond the work?
Um, thank you for the question, chairman.
MITs, one of the things that we're doing, I'm always going
to, uh, we always need additional resources to do, uh,
the work that we are charged to do.
And certification is a huge portion of the work
that we do in the Department of Procurement Services.
Um, in the beginning of the year, we
prioritize the A CDB certifications
because of the huge initiative
that was on the historic opportunity
for concessions at the Department of Aviation.
So we are prioritized that.
We did outreach into the procure procurement bid close,
which was of June of this year.
So we had over in the fiscal year 2025 with,
with our A CDB certification, we looked at that as a pilot
to see where we could reduce timeline,
where we reduced it from maybe six months to roughly 90 days
for the A CDB certification
because we knew it was a priority
to have these firms certified
so they could participate on this opportunity.
However, we all always need teams to certify,
whether it's in, in any of our programs.
We just, uh, the VB ordinance moved from a pilot program
to a permanent program.
So we always need certification officers to
certify our disadvantaged business enterprise
because we have several different programs.
If it is that disadvantaged business program.
Do we have one now? Pardon me?
Department to do the certification?
Do we have a department that do certification?
No. Do you have a person that's committed to go out
and do certification?
Is there someone in your
We have a team. We
have a certification unit.
They do compliance
and certification when within our equity unit,
did I answer the question
Somewhat?
Well, we used to have liaison that were, uh, appointed to
various section was the south side, north side
where we could work with.
So I was just wondering if there were a person directly
that covers a certain part of the city to help.
And I know you haven't added any staff members,
but do you have, are your staff at the capacity
to do the work, do you feel
We have some vacancies that we, of course,
everyone in one knows we are undergoing the freeze,
but we have vacancies when the vacancies up
as we have a aggressive, um, hiring process
that we're trying to hire all the people.
So we do have vacancies that we're gonna look to fill,
um, the beginning of the year.
Those vacancies you need fill correct
Of? Yes.
You, you don't need them to be eliminated.
We need all Positions.
We have the budget chair here, so I want him
to hear this now.
And we're trying to,
I actually have another question for her.
Once we finish, We need all our positions
to do the adequate work that we are by law required to do.
If you look at the ordinances that are being introduced,
you have to look at them as,
I will call them unfunded mandates if they don't have
FTEs attached to them.
So when we have ordinances that come in
or introduced to the council
and it has an impact on procurement,
always review it as a standpoint.
How many fts is it gonna take, plus resources
and or does it take to carry out that ordinance?
Okay. Well thank you very much.
I appreciate you coming out to the community doing the, uh,
instruction events and reaching out.
I think though that's a start,
but, uh, even more so when we help people to be able to,
to get those small contracts where they're able
to get the foot in the door.
Thank you. Thank you.
Thank you. Uh, chairman Mitt, um, question I asked earlier
to, uh, hr, um, knowing that we're in an environment where
we're going to, uh, have expenditure reductions,
what does, uh, three
to 5% reduction in resources to your department,
uh, do to various aspects?
Is it, if it's certifications, if it's, um,
you know, certification take 30 days now it would
take 35 days.
What is, what does that do to you?
And is that something that you're able to quantify, uh,
moving forward?
And if not, then, uh, as we move into 2026 budget season,
I think that is in something's important for us to know
what these expense reductions, you all did 3% last year.
Everybody did that. You know, I think budget is looking
for another three to 5% this year.
What does that actually mean on service delivery from your
departments, other departments in the city of Chicago?
Uh, what that means to us longer wait times on
the procurement process from exception
to the end in granting contracts
that means longer wait times.
As you stated earlier on receiving certifications,
that means not having the ability to do
impactful outreach in the communities
to ensure the underserved communities that have
historically been left out in the process.
We've seen an uptake in when we're out in the community.
We know that when we are educating
and being in the community, we see
that positive response in those vendors response
as in the example that, um, Jaelle Cortez gave earlier.
So it would have a huge impact, um, on the services
that we deliver, um,
for the Department of Procurement services.
Are you able to quantify that?
Um, given, uh, I, I think it's important for us
to understand like what does that mean?
You say longer, but, uh, you, you may not be able
to do this today, but I I I think it's necessary for us
to understand that the quantifiable aspects of
what expense reductions do
and what that impact is on your ability to deliver
what we're asking you to deliver.
So I think it's important for us to know that
the certification that took 90 days is not gonna
take 120 days.
I think it's important for us to know and understand that.
So that's why I'm asking the question.
That's why I think it's important for us to know.
'cause again, uh, these decisions are not cost free.
So we just need to know and understand.
And I, if you don't have that today, if, if in time,
thinking about the 10, the 10 things
that you all top 10 things that you do,
what do these expenditure cuts, uh, mean to those items? So
We can answer that through the
chair. Thank you for the question.
Thank you very much. Any other questions? Go ahead.
Uh, chairman Vasquez.
Well thank you. Thank you very much, chairman.
So, um, I had, uh, one, I appreciate kind of some
of the background because we have had, uh,
folks ask about certification payment.
So, um, once
through the chair if you could share the spend analysis
that you mentioned in the opening statement.
Yes, I could provide that through the chair. Thank
You. Um,
so we have, uh, let's see,
we've been discussing the third party contracts.
Can you talk about the department's role in determining
when positions that are in-house go to third parties?
How does that determine, right.
Um, just wanna get some background on, on what the protocol
for that is, what process looks like,
how determinations are made.
Um, thank you for your question.
Alderman Vasquez, I'm going
to have my subject matter expert.
Courtney Dell, Juda, Judas, answer that question.
Hi, um, Courtney de Judas attorney.
Um, for when things go
to third party contractors rather than directly, um,
with DPS, um, I will say the contracts
that DPS issues are always directly
with one particular vendor.
So we don't have necessary third party contracts.
Um, but if you're speaking to one, maybe, um,
there's overlap in work that, um, DPS does
and that a vendor does, um, that's based on workflow.
Um, I think an example
of one is there are some certification applications
that do go to an outside vendor.
Um, and that's just purely based on workflow
to keep our processing time within our goal
estimates of about 90 days.
Okay. So I, I think one, I appreciate the background,
but just for clarity, I'm trying to wrap my head around it.
There's things that we could be just doing by hiring.
Okay, here we go. All right.
I have no idea having the feedback.
Um, but just for, for better understanding, uh, uh,
there are a lot of times we think about things that we hire
outside parties to do
and if we might save money
by having somebody in city government actually do it.
And so it's more a determination of
how we figure out which ones go to somebody who's outside
as opposed to us hiring people internally
through city government to do it.
Does that make sense or? Yeah.
Yes, that makes sense. Um,
that information is all based upon the need
and the resources that you currently have.
So there's vari various different factors
that could determine need resources that you currently have,
funds that you currently have.
So those are things that within the department procurement
services that we look at when determining what's,
when we keep something in-house versus
when we keep something, when we outsource it.
So then you tell me different, like you as an office have
that conversation, you
as the chief officer then make the determination.
Is that the way? Wait,
I don't understand your question.
Could you repeat it again?
Well, to to your point, you're saying hey, if we have need
determining on all these different factors,
we then decide if we're gonna go out to a vendor
because it's necessary or not.
Right? That's my understanding of the answer.
I was answering the question.
If you were looking to go outside, those would be some
of the uh, criteria that you may look at.
Yeah, I'm just trying to figure out who makes the decision
For, it was for the Department of Procurement services.
We make that need, but we collaborate with departments
that we procure for if they have the need.
Right. So then that would be, let's say
that commissioner coming to you all
and sorting on saying they have a need.
The reason why I ask that is like all these departments are
siloed to some extent
and what we're trying to figure out to save money,
rather than trying to pay out everybody else to do the job,
we could just hire city people at a better rate
and build that out rather than expending.
And so I get that. What I'm hearing from you is the
commissioners come to you and say, Hey, we need a thing
that if we're trying to figure out how to save money,
I don't know who would tell them, Hey, I know you wanna go
outside, but we're not gonna do that.
We're gonna hire people internally this
time 'cause it might be cheaper.
So IIII understand the, I understand the response.
You're kind of like the clearinghouse it comes
to so I get it.
She is and, and generally, I mean what we've seen is
when it comes down to efficiency
and execution that generally you find
that the contracts are, are, are more favorable, uh, to do
that, uh, versus, uh, in-house staff and, and
and doing some of those things.
So, so if thank
You, if through the chair that
could be shared is like the savings.
'cause the example I think of which agent procurement is
law, we always tell you we hire law lawyers
every single everywhere else.
And if we had our own lawyers, we
wouldn't be spending that much.
And so if people are telling us we're saving more,
show me the homework is where I'd be asking
and make sure we're saving money.
So if that is the case that it's like hey, it's cheaper
to do the vendor than it would be hiring internal.
Love to see the math on that.
Um, but I can go to my next question
'cause I know I barely have time.
So we have discussed putting pressure on vendors
that don't comply with standards.
And so we're thinking about your polluters,
we sign contracts, we say you're not gonna pollute,
you're not gonna dump whatever you need to,
you're not gonna have um, exhaust or other things.
And then they violate it.
They literally violate it, they don't care.
How do we end up ending contracts?
Have we ended contracts with anybody that's been a polluter
'cause they have not met their contract, uh, demands?
Great question. Ottoman.
I'm going to turn it over to uh, Courtney in the box.
She would for the subject matter expert Sure.
My legal counselors, she probably could provide
more expertise in that area.
Courtney don't do this. Attorney.
Um, for that there, um, we have not ended a contract
with a polluter specifically,
but um, the process that happens if we were gonna consider
that is we discuss, um, the contracts in depth
with our user departments.
Um, under CPO Roberts we have um,
significantly increased um, contract management
and communication with the departments to try to be aware
of any contractual issues that a vendor might be having.
If there is an issue, usually we do give a vendor an
opportunity to cure that issue, um, through a cure notice.
And then the next step to that would be a default
or termination if that wasn't able to be corrected.
Okay, I follow up.
Can we just find them so we get some more money off
of them if they're not following the
rules before we get rid of them?
Like what was explained is, hey, we tell them
that it's a thing they shouldn't be doing
and hope they can fix it.
I'd rather take their money if they're not following the
rules of what we need or get rid of them.
Um, great question.
Autum and I believe we have a process in place
that if anyone doesn't follow any particular rule in our
contract document, we have a process for it.
And one of the process, because the courts want you
to work things out
before you go to the extreme,
they want you to follow the process.
So the first part of the process is the legal counsel
communicated was we do a notice to cure.
Okay? And if they cure, we don't just jump
to give me the money, we follow our process. Sure.
If through the chair you could send over the last four
years or even the beginning of the term,
how many people have been taken a cure as far
as the process who's been held
accountable? I'd appreciate that. That I
Could tell you today. One
notice secure was sent with a vendor. So
Are we supposed to believe only one person's violated?
Well, not from the standpoint,
from an environmental standpoint.
I, we only have sent out in 20 25 1 notice to cure.
Okay. So then just for, if we find out,
because plenty of people do the homework
that people are violating, do we just escalate that to you
so we go to next step and we get more than one?
You please, if any information is our job to ensure this,
we're getting rid of waste
and mismanagement, report that information up
and we would do our due d due diligence.
Yeah, we, I wanna make sure that we're helpful please.
So these folks aren't taking
advantage of the city of Chicago. Please. Thank you very
Much. Thank you.
Thank you. Uh, chairman Vasquez.
Other questions for procurement?
Alright, with that being said, thank you for joining us.
Uh, this is a, uh, call us the prelude to, uh, budget 2026.
Uh, committee will stand at ease until 9:30 AM on Wednesday
where we will have, uh, OPSA, the fire department
and OEMC for tomorrow for our public safety series.
Thank you.
Yeah.