We're just testing. We're good. I'm good. Okay, good afternoon, everybody the committee on Ethics in Government oversight will now come to order we have two items on today's agenda first an ordinance amending regulations for nonprofit lobbyists and S an inter-governmental agreement continuing to Grant the city's office of Inspector General jurisdiction over the public building commission. We will begin with a roll call to establish Quorum. Please know that you're yes or present response will be deemed a yes vote when this form call is used for a reference boat for later items. Sure Martin is President Buster had an older woman Lee Alderman O'Shea alderwoman Taylor older woman Sbarro's alderwoman Scott Alderman, Taliaferro. Ottoman waguespack Alderman sposato Alderman Riley Alderman Lawson with the numbers present we had established a quorum. We have three older people with spotted a sorry sposato. My apologies neck second time today sposato a sky and Lawson who requested remote participation under rule 59. Is there a motion to allow older people sposato Scott and Lawson to participate all the women lie. So moves all those in favor signify by saying I all those opposed signify by saying no the eyes have it you welcome other people with spider is I do Scott and allowed to attend the committee meeting remotely going to start off before. Call with public comments to mention the rules of conduct for public meetings pursuant to the Chicago city council Rules of Order and procedure rule 49 the starch an arm sets forth. The following rules of conduct to be followed during the public comment period and the duration of all committee and City Council meetings profane vulgar threatening abusive or disruptive language is not permitted to mean discriminatory or harassing behavior and speech directed to Ward's others. Do others is not permitted disruptive behavior, including disruptive or disrespectful conduct during others presentations is not permitted banners flyers or signage are not permitted backpacks large bags and sharp objects are not permitted clear bags not tinted in color that do not exceed 12 by 6 by 12 in will be permitted and are subject to search food and beverage including in metal canisters are not permitted cell phones must be placed on silent prior to entering the meeting room individuals must remain seated public comment speakers are permitted to stand only when providing public comment small handheld devices maybe use only while seated and the user must refrain from interfering with the view or hearing of other individuals individuals or groups failing to adhere to these rules will be asked to see such disrupted conductance and failure to comply will result in their being subject to removal from the meeting by the Sergeant at Arms. Okay, at this time we will begin public comment the. Is set for 30 minutes out of respect for everyone's Time. Each speaker is limited to three minutes of public comment. We have two people signed up for public comment. The first is Holly and you'll miss Samuel if you can go ahead believe you're a participating remotely. Good afternoon, everybody. If you can hear me, I'll go ahead I'm Holly and billing the director of policy and government Affairs at 4 front or front is the only Statewide nonprofit Association in Illinois. We represent all operating on profits and Foundations in the state. I personally been heavily involved in negotiating the updates to Chicago's loving regulations. I apologize. We just need to turn up the volume here in the meeting room allocation. They're singing. I'm sorry. Okay, Miss Samuel if you can go ahead thank you for your patience. No problem. Thank you. Mr. Chairman for front for front is the Statewide nonprofit Association in Illinois, and we've been heavily involved in negotiating the lobbying, Oregon. They just wanted to go over a couple things today with you. The substitute ordinance makes significant improvements to the underlying existing law. Most of the changes are good ones and they should remain in place. We generally support the substitute as it is, but I'd like to emphasise to keypoint for your ongoing consideration first the Chicago regulations vary greatly from the state's regulations specifically Chicago's requirements go much further than the state's Chicago requires more narrative detail and indirect expense reporting. For example, these variations have resulted in four bases confusion and some redundancy and administrative complexity for organizations that must register in both jurisdiction. Am I that we ordered you to continue examining how to streamline the process for everybody in the future by aligning as many regulations as possible with the state. Secondly, the Chicago regulations are relatively complex. The ordinance is difficult for people to understand which makes compliance challenging while the board of Ethics has been responses to questions and we're grateful for that. We've received some conflicting information at times in response to questions even as recently as last week. So for that reason, we urge you to require the board to provide thorough public education before the effective date. We also urge this going to need to continue examining how to reduce reporting complexity in the future. So in closing I just want to say how tremendously grateful we are that German Martin and other players like the light apartment the office of Inspector General the board of ethics and the committee staff who's been outstanding and engage with us in good faith on the Ordnance and doing a tremendous amount of related work. We're very grateful. I know we all agree that a more ethical Chicago benefits everyone and Forefront will continue to do our part to educate our sector about the Rules of Engagement. Please contact me if you have any questions related to the ordinance or nonprofits. Thank you. That concludes my remarks. I appreciate your time for second and final speaker during public comment is George Blackmore? Mr. Blakemore? Thank you. Watch the clock. Make sure I get my free minutes. Watch the clock. not intimidated by any of you the inter-governmental agreement I'm totally against With the inspector-general they can even do what they supposed to do with the city that's known with the building commission. Go Irish. The ultimate do not vote for this item. Joe Rogan What is propane? What is corruption what is par in abuse? This city, maybe I pick right into the city of Chicago known as the most racist city in America. Who said that. Doctor Martin Luther King. Also I heard did you read that note on public radio the most corrupt city of all the stadium Is the city of Chicago what were their criteria? How many arguments have been indicted for corruption and Fraud and Abuse that goes on here and you have that audacity to say that has power the charger of all not even a security email they have been trained. We have our police with somebody out of order. They could be right here. When was those rules implemented and what was the impact of a skeleton make decisions about those rude? When do the GoPro rules committee you all are going to have a rules committee? And then the rules committee vote for it? And then it goes to the city council. How did Michelle do this? She made the city council also a committee of a whole. I don't know who you think Mister Blakemore. I don't think you understand me, but I understand you real good what order waste and abuse. I know exactly as it should be elected by the people. And even when the electric is still corrupt, the inspector John is now go have a another Duty with the building commission. These are two different agencies and it's a reason why they divided these agents not to do 6 to 9 here. Oh look at the time here. I will know who you think. I am your honor that have a just a month of my caliber to speak and your committee meeting today. Now you heard me real-life. Thank you. Mr. Blakemore. We our first order of business is to rule 45 report from October 2023, which was sent out to the committee. Can I please have a motion to approve the rule for 45 report? Alderman O'Shea, so moves all those in favor of passing signify by saying I all those opposed say no in the opinion of the chair that the eyes have it as I mentioned earlier. There were two items before the committee. The first is Ordnance 20, 23-00 02937 amendment of Municipal Code chapter to 156 regarding registration of lobbyists and regulations pertaining thereto. The committee has received a substitute ordinance, which has been sent out to Will a prior to the meeting can I have a motion to upset except to substitute? So moved by older woman had in all those in favor signify by saying I all those supposed to get in the chair the ice habitats the steps to this now before the committee. Do you want to recognize alderwoman a hoppenworth and aldermen Burnett none committee members and also want to know that executive director Steve Berlin from the Chicago Board of Ethics is doing this thing will speak to the sub students before we open the floor to committee on committee members for questions before we turn it over to director Berlin. I would like to set up a bit of context in 2019 the city council unanimously passed an Ethics reform package that included a requirement that nonprofit lobbyist register and file regular reports with the word affects in response to concerns shared by nonprofit leaders, the board delayed aspects of implementation of this ordinance to engage in continued conversations around how to improve it and fortunately the arrival of covid-19 delayed implementation even further in the city has a spent a number of years in negotiation with my profits in the months before and since the introduction of this ordinance the board of ethics and committee staff have spent hundreds of hours at 10 briefings with nonprofit leaders and meeting individually with thousands of nonprofits. We have made substantial proposed changes to this ordinance based on known for The feedback for introduction as well is the drafting of the substitute and I'm pleased to present it to the committee today the substitute contains Common Sense policies that will bring Chicago in line with other major cities in New York and Los Angeles when it comes to nonprofit Lobby first, it establishes a monetary an hourly threshold for a lobbyist registration, like other cities in the country. S it clarifies the definition of lobbying to make it easier for both for-profit and nonprofit organizations like to understand when their conversations with City officials are Lobby under the ordinance clear that providing public comment participating on a city advisory committee administering grants and requesting regular city services is not Lobby third. It relieves the burden of supporting for small nonprofit organizations, which are often on the front lines providing essential services to underserved communities don't have additional staff and money to navigate complex red tape last. Ordinance will go into effect over 6 months from now on July 1st 2024 leaving a time for the board of Ethics the committee to conduct a robust public education campaign. I'm grateful to the dozens of nonprofits from across Chicago that gave their time to provide thoughtful feedback and ask questions. I'd also like to thank the board of Ethics mayor polisena intergovernmental relations teams the Law Department in the office of Inspector General for their help in crafting. Substitute. I know invite director Berlin to speak briefly on this proposed ordinance director. Thank you. Mr. Chairman and honourable members of the city council's committee on Ethics in Government oversight. It's my pleasure to appear before you to answer your questions about this lobbying law Amendment. I've been with the board since September of 1993 and I've seen numerous changes and widely differing approaches to the city's regulation of lobbying specifically lobbying by and on behalf of members of Chicago's not for profit Community literally on no other topic on which I have worked have I seen such passion in all those years you are presented to you for your gratification is the product of years of work by the board of Ethics. It's legal staff representatives from the city council's committee on ethics and government oversight. The mayor's office the Law Department the Inspector General and members of the not-for-profit community as the chair said it will bring Chicago War within the full to get spear City's New York Los Angeles as well as San Francisco in Philadelphia as to the Public's right to know who is Sequencing its officials and employees and other things the Amendments before you would we impose thresholds for all individuals that must be met before they would be required to register as lobbyists second. They would exempt individuals who lobbies solely on behalf of any not-for-profit with an operating budget or net assets or funds balances of less than five million dollars third with tap all lobbying funds at $20,000 per violation for that would add a self-defense communication that would be an exemption from lobbying for not-for-profits fifth. It would codify board opinions from late 2019 and early 2020 that determined that not-for-profit Personnel to serve on advisory committees at the city's request are not there by lobbying unless they advocate for new resources or programs for their own not for profit 6 that would clarify which actions constituted Ministry. Faction or legislative Action 7 that would clarify the background work in which lobbyists speak with their employers or clients do not count toward the hourly threshold 1/8. They would exempt those individuals who communicate with City governmental Personnel solely through participation in temporary youth employment programs as the chair mentioned. It would not take effect until July 1st of 2024 until that time the board will coordinate with the And engage in a comprehensive and robust education and Outreach effort. Finally just one factual note. There are currently 122 individuals from the not-for-profit community that are registered with the board of Ethics with that. I open it to your question. Thank you very much director. Any questions about your head. It's so one of Sherman appreciate you working on cleaning this up and I guess my way of questions. I know when we worked on this last term. I got a lot of concerns from a lot of my smaller nonprofits. I'm wondering if from your department if you could give us a maybe a summary of the types of questions that you received from nonprofits, that would be questions. That would be resolved or more clearly given answers with this revision. The number of things. First of all, there was a major concern about fine as most of you know, the governmental ethics ordinance when it was initially enacted in 1987 has fines that are $1,000 per day measured on day five from the time and individual first engages and lobbying until the time that individual registers and has probably some of you remember Board of Ethics has been in a position to Levi and assess pretty heavy fines. I think that's the major concern and there was lots of negotiation the beginning of the beginning of the last term regarding capping those fines and chair Martin and his and his team and us have discussed this at length with a lot of partment and capping flights are $20,000 which matches the maximum fine for other lobbying violations should go a long way to resolving the vast majority of questions that we received from the not-for-profit community. Secondly there was a lot of talk about Grassroots lobbying and what happens for example under current law which was enacted in 2019. If a person's paid even a dollar 24 example, send emails to you guys and the city council the mayor's office City official city employees. This long makes clear that number one. Nobody would have to register until and unless they meet the threshold. And number two there are a lot of different activities on which people might email the city council that would be exempt. So there's a much more stringent definition of finite definition of what administrative action as well as legislative action in those two buckets that resolves about 95% of the questions that we received from the not-for-profit community in the slot does codify the board issued a number of opinions back in early 2020. For covid hit in force and those opinions are codified in this particular proposal. 85 share one with knowledge German Taliaferro for purposes of quorum other questions Auto on Taylor and you get through the chair how many nonprofits have actually registered as a lobbyist. As of today is 120 120 to we don't actually have any registration. So since the mid-2000s the city has moved away from entity registration. So we only have individuals that register but these 122 individuals list us their employer a not-for-profit agency. So their lobbying solely on behalf of a single not-for-profit how much have we made on finds on fines? I don't have that exact number in front of me. It's ironic Ali in my executive directors report that's going to be it's going to be issued to the board later this afternoon. I'm fine. So I'm at a time and just estimate that it's somewhere in the neighborhood of $25,000 this year give or take so is this More helpful than harmful. I think it is in my opinion. Yes, it is. It's much more helpful. It provides a fuller picture to the public of who is spending time to influence your judgment. The mayor's judgments Commissioners judgment. I can't say that. I'm the subject of lobbying but other department heads are many administrative executive departments are subject to lobbying. And of course the city council is subject to lobbying as well. This really the purpose of this is transparency to give a fuller picture to the public of who's attempting to influence your judgment officials and who's try to influence the judgments of Commissioners Deputy Commissioners. The mayor's staff has executive-level employees. How are we making sure that organizations get this information or need to even know to register as lobbyists only those those organizations that who's who's operating budget or net assets for more than 5 million, but we will work very closely with the committee on a robust and comprehensive education program and we will work as well as with four front and the other members of a not-for-profit community to help them spread the word. So is there some training that comes with this one? Somebody registered? Yes, since 2006 all registered lobbyists must complete an annual online training and we've had complete compliance with that coming. If every so often human nature you always have a couple lobbyists that fail to do it and then they will resend them nasty grams and they end up doing it. So yes, there is there is mandatory training for all lobbyists. And doesn't make sense that you're saying for organizations to get over 5 million. Is there some conversations about just having those organization registry just for transparency purposes that's what this word means. It's really designed to do. What do you eat when you use this ordinance would limit those individuals who would have to register to those who are employed by or Wabi and clients are five million dollars are over. Thank you. Steve shorty chair. I can share one of egg knowledge at your woman Pat Dowell. Anyone else with questions or comments? Okay hearing none. Can I get a motion to recommend approval of this item? So moved by Arman alif all those in favor signify by saying I say no and then painted the chair the eyes have it before we go on to our second and last item. I want to acknowledge a Steve who is some of you may know with the recent recipient of the 2023 koegel Award with more than 500 members throughout the US Canada and the English-speaking world. Koegel the Council on governmental ethics laws is the largest organization dedicated to the administration and Improvement of governmental ethics and related laws. The koegel award is Cobalts highest form of recognition conferred upon individuals who have made significant demonstrable and positive contributions to cogo's disciplines, which are ethics campaign Finance elections lobbying and Freedom of Information past recipients include former President, Jimmy Carter former Senators Russell find gold in the lake John McCain and the car 11, so but you are a very esteemed company director. Thank you. Thank you. Mr. Chair. I think I'm my face is probably as red as Alderman Burnett's sweater right now. Thank you very much, but we are lucky to have you thank you for your continued service and thank you for your work on this important piece of litigation. Thank you all just like that litigation hopefully, okay. I've been tracing our next and last item will be ordinance. 2023 Dash 0 0 0 5 9 8 3 the Second Amendment to the intergovernmental agreement with the public building commission of Chicago providing for the city's Inspector General to serve as the commission's Inspector General. I would like to invite up inspector-general whispered to provide a summary of this ordinance General whisper when you were prepared to hear from you. Thank you Sherman. Thanks for having me good to see you all the ordinance before you all is an extension of an intergovernmental agreement, which has been in place since 2015 and it as you described, the office of Inspector General to exercise the same oversight Authority. We exercise over other programs and operations of city government over the city's public building commission. And so rather than having a separate Inspector General function for that sister agency, this enables the public building commission to provide some amount of funding to our office and then we probably we exercise as I say the same oversight Authority that we do with respect to the rest of the city. And so this has been in place since 2015 the matter before you today simply extend the existing terms of that agreement for another five years during the times has been in place since the 15 some of the oversight activities that have resulted from that Arrangement include a number of separate audits. We've looked at the change order process in City construction projects in which of the PVC specific topic. We've also reached PVC and some of our other audits you all hear me talk all the time about the fact that City operations don't happen in silos, but they happen as part of a city government ecosystem. That's one of the reasons for my perspective. It makes a lot of sense to to consolidate oversight in this way. For example, when we looked at the Save the city safety cameras, there was a significant piece of that audit that related to the public building commission because many of the city's safety cameras are mounted on or houses in public building commission assets. The same is true. When we looked at the building commissioning process and send the city's compliance with requirements under the Chicago conservation rules. So a number of audits, we've also an investigative front during Life of the mou we participated in the investigation which resulted in a criminal conviction of a public buildings commission employee for fraud. They were sentenced to 23 years of Probation and to pay restitution for the amount of the fraud. So it is has been a from my perspective a productive oversight effort. We have we appreciate the the public building commission has partnership and we look forward to continuing. Thanks very much General next up. I would like to invite Ray get her off at Phoenix. Director of the public building commission. I hope I did not miss pronounce your last name. If I did, please correct me. Okay. Well, not bad not great. But I'll take it first try when you're ready. Go ahead. I'm acting executive director regular off public building commission. I might just like to Echo everything has been said here with regard to the partnership and transparency and how important that is to public building commission specifically related to the artists that were previously conducted. A lot of lessons learned a lot of implementation of procedures and processes to make it easier not just for the public building commission, but for its General Contractors and subcontractors as well, as a lot of good has come out of it in my opinion and we fully support in mind. Thank you opening up to questions. I will start with committee members and then I'll committee members waguespack or Taylor. Did you have a hand up? What did you all do before 2015 when it came to this commission or what was in place? I was before my time, and I don't know whether you know the answer. But before that time or IG would not have had Authority would not have had oversight authority over the public building commission. I don't know whether there was another entity that did I can follow up on the couch cuz I was just going to say you you got enough work. So I'm staying busy you very busy, but I'm concerned that it's the city watching the city again. Does that make sense? Explain to me more about Do you always cuz you only want extended for five years? Why not something y'all doing permanently if you feel like this working, I guess that's my question. I think that's a good question. I think there's some balance striking here between stability of the process and flexibility of the process as with many things from my perspective. This has this has been an effective arrangement. I think I can get provide some important efficiencies here standing up and oversight entity is is is a big Endeavor in terms of all of the things that it requires. And so this allows rather than the city kind of further duplicating the oversight Enterprise for the public building commission. This allows us to kind of use our existing infrastructure and office resources and personnel and so on and I think in terms of making it permanent versus this this kind of approach, I think it's provides for some flexibility where if the scale or the complexity of the public building commission operations change over time. Then this would allow an assessment to say 5 years down the road really we need a separate meeting entirely separate over sudden to be like we have for the Chicago public schools, for example, so I think it's a point. Well taken. There is a balance to be struck here at this from my perspective is a good one. Is there some data to prove otherwise to prove that it's not a good arrangement don't know how exactly we would have proven negative in the data. I would say, you know, what time does the value proposition the the mou and the IGA they company documents lay out the amount of funding which the public building commission provides to to the city to to go into the YG's budget floor calculation in 2020 for that amount will be $200,400. You know, I think that's that's a much smaller dollar amount been it would cost to set up a separate oversight entity two hundred and $2,400. Who sets up the commission like who who gets to pick in? This is? Call I want to be educated about it cuz there's not a lot of dealing that I have with them but I would be interested in who who sets up these commissions and really for the public and what they actually do and why is there need for oversight? I can understand your question. So the question is who who sets up the phone and what is a public building commission comprised us and both and who is it a pointed? Is it elected our chairperson is Mara Brandon Johnson elected by our Board of Commissioners. Some of those positions are appointed by our chairperson some are not as far as some of those services that we provide is a public building commission. If any of that planning design construction for any number of clients on some of which are in the room including others like CPS, and they is. And in others it may require planning designer or contractor procurement Services throughout at any given point for any given reason renovation project civil project Municipal projects Board of Education projects. So on so on and so forth in the almost for years that I've been there we've had a great deal of success with a lot of our clients and helping our chair chairperson continue these Investments throughout these communities to deliver these projects help answered your question someone so every chair has been the mayor Any time that I've been there every chair person has been the mayor doesn't have to be the mayor and no it does not have to be the mail but he is our chairperson the mares a type in the time. I've been noted sure people have been the mayor of City of Chicago how many lawsuits have been filed against the building commission lawsuit lawsuits defined by claims and litigation right by the fastest love those dirt dirt bike number of claims that we resolved through what we call our article 18 or claims resolution portion of our contract as far as lawsuits in the time that I've been there I can think of at least three that ended up being a lawsuit that want resolved through the claim process through either our negotiations or settlement or or or both in some cases, but there has been litigation and we do have general counsel that represent us as well in espanol Roy apart from what the that's what channel provides information from Vice chairman. And yeah, I know that you said the mayor's the chair of the board who else appoint members of the board, isn't it? The president do the president County Board and twinkle and and who else I marry Brandon Johnson? Okay. So do is to appoint the board members. I'm sorry. I didn't know if you said that or not. I didn't say that. But thank you for clearing and I are making ice maker. Call Erma Taylor, please last question through the can can you give the steward to share about the the lawsuits or the things that we have not settled? This is a catch-22 for me. It's like do we spend the $234,000 to have outside because it seems more transparent or do we keep with what we had? This is not two hundred to a thousand additional dollars. This is money that is allocated from the table saying if we were to go with outside cancel that is that what you are saying? The cost would be no. I think the reality is the cost will be much higher. That's the amount that comes from the public building commission budget in 20, ig's budget floor calculation for us to perform this work if I can clarify any of those any litigation with regard to contractors or even the can explain that are considered a a a portion of that litigation isn't paid the ig's office isn't paid to me go to litigate that on our behalf. It's our general counsel that would do that and prior to advancing any litigation. We 100% of the time will communicate with our client regarding those benefits or disadvantages of pursuing that lawsuit and whether or not we want to go that route or other means weather at settlement negotiations with Those contractors on at the end of the day. We're funded by our clients. So proper use and expenditures are those funds are our number one priority and we will look at all of those different options related to that litigation. If and which those those those better come forth in the last three that I've been a part of that's exactly what we've done. So make sure that the client is aware make sure that we have their input and concurrence before we proceed you say you been and how long 24 years almost. I will pray for you. Thank you. Thank you alderwoman chairwoman Dale. Did you have a question? Any other questions or comments alderman waguespack? Thanks for the Inspector General. I think. Looking at the extension table. It's an obvious thing to move forward with but when we hear about a piece of PVC employee caught committing fraud and you know, we have restitution I think made it to whoever how does the do-not-hire process work? Within the PBC with the city and I know it should extend. As a mandatory thing to the PBC in The Other Sister agencies, and it doesn't but how do we prevent somebody like this who committed fraud? From coming back into one of the other agencies within the city Realm. Exactly as you point out Alderman that is an existing weakness in the cities. Do not rehire policy, which is that the city and the sister agencies are not bound by each other's do-not-hire list. That's a policy decision that that's something that could be changed. Obviously, you know, our piece of that has to do with the enforcement of it rather than the policy decision, but I agree that from an accountability perspective. That's an important witness in the policy if you want to respond to do you have any do-not-hire? Enough if it's in your code portion of the code, but I haven't seen anything and maybe I missed it. It's an internal roller anyting I think internally, we would not be hiring at individual back. But would you for instance would you send a memo to the city that says this person is on a do-not-hire list for us. They've been you know, they've got they've committed fraud. Restitution at the moment and would you signed a memo out to the city that says this is an individual. You should not hire are we be willing to do that? I consult our Council and the ig's office in that manner, but we would not be opposed to doing that. I think I'll be the right thing to do. Yeah, I think I'm just checking to see if I missed something on the PVC rolls, but it's something I think it's very important that we missed out on across the board with people being rehired and sister agencies not saying with the PBC but this might be a good aspect of you no moving for at the extension, but trying to find a way to put a put a stop to these people being rehired. There's there is abuse in the do-not-hire. I think threw me off there for a second. There has been abuse with the do-not-hire list and I just want to make sure that you know, it's more out in the open and that we'd start to look at really crapping some very serious legislation that that kind of puts a stop to this. So it makes agreed we would welcome the opportunity to work on that and never any other questions. Sing none. Can I have a motion to recommend approval of this item? So moved by a vice chair had in all those in favor signify by saying I all those opposed say no and you pissed in your Cheerios have it there being no further business before this committee. Can I get a motion to adjourn and sew moves all those in favor signify by saying? Hi all those opposed in the opinion that the charity ice habit. The meeting is adjourned. Thank you.