is called to order.
We'll now have a roll call to establish quorum.
Vice chair Conway
alderman laspada
Alderman Hopkins
Alderman Hall
Alderman Mitchell
alderman
Lee
Alderman Ramirez
Alderman Quinn
Alderman Lopez
Alderman Moore
Alderman Curtis
Alderman OSHA Alderman Taylor
Alderman Mosley
Alderman Rodriguez
Alderman sichel Lopez
Alderman brunette
Alderman Ervin
Alderman Talya Ferro
Alderman Cardona
Alderman wage back
Alderman Rodriguez Sanchez
Alderman Ramirez Rosa
Alderman mitts
Alderman Spa
Alderman Vasquez
Alderman Reilly
Alderman Knudsen
Alderman Martin
Alderman Silverstein
chairman dowels here
Alderman Moore is here.
Vice chair Conway's present
We have 18 we have a quorum.
Alderman viegas Alderman Harris Alderman Scott and Alderman
Beal have requested to participate remotely today in
accordance with rule 59. Can I have a motion to allow these
Alderman to attend the meeting by remote meetings?
So moved by Alderman Lee all those in favor signify by
saying I opposed and the opinion of the chair the eyes have
it. I just want to confirm that Alderman viegas is here.
Alderman Harris
here Alderman bill here Alderman Scott
present
they have all joined the meeting today at this time. We
will have
Alderman vagus got you at this time. We will begin public
comment. The public comment period will be limited to 30
minutes out of respect for everyone's Time Each speaker is
limited to 3 minutes. Um, we do not have any 1
participating remotely today and we have 2 people who have
signed up for public comment that are with us this morning
the first
First speaker is tan Sims.
Taiwan Sims
Mr Sims
Want to acknowledge all the men Chico?
Is with us this morning.
Who is a non-member Mr. Sims please? Start?
So I realized for the last 4 years. Maybe I've been an
enemy of this city government the city. Um, I guess
supposedly because of an incident that took place in Rogers
Park in 2020 what the officers um, Na and Scott tried to
attack me tried to violate my civil liberties, and I
wouldn't let them.
I grew up I grew up a hard way. I'm from out to hearing
Hornet projects. I grew up a hard way. It's hard to bully
people that come from hell.
You see it's hard to bully people that come from hell.
It's hard to bully people that dealt with hardships, but I
don't know if Mr. Irvin never dealt with hardships that
black dog over there when the queen stood up to give her
power. You know what he did stood up to a better.
Best representation we didn't hear from a people as a
people because she said it in her 68 years ain't nobody
ever gave her nothing.
But in these 43 years I found myself fighting an uphill
battle.
Miss D. You said they had housing for me?
Housing is housing versus the shelter the the crumbling
whatever it was dilapidated building that they put us in
with 1 sink and 1 toilet for about 15 men.
That's not how housing housing is what I should have got
some years ago in 2015. That's how housing.
For all of my Endeavors y'all want to laugh at them for all
of my efforts. Y'all want to laugh at them and now y'all
want to murder me when y'all got to be held accountable
y'all my children the courts. I'm fighting the courts
judges all these people with power automatic power though.
But we didn't what so we elected y'all to bully us to come
into y'all positions. We elect these people to bully us
y'all.
To come into their positions to f*** us over.
That's y'all do hunt. Y'all want to stand on the next but
I'm not the person that who neck y'all can stand on.
I've been to Hell I've dealt with all of it.
I'm not that person. I refuse to be that person my jobs
here. I have a job. I have a um a charge in EEOC that city
government I suppose which has been held up for so long
here take this number down. The number is 440200220907 the
initial um, investigator was Brandy craft now, it's been
had over.
The Seth Brown that's just a portion of what I'm going
through. I went Friday to the I've been to the State's
Attorney's Office over and over and over again regarding my
small child yasuke Roosevelt Sims who I've not seen in a
year, but the courts have made it to where they want to
demonize me make me a criminal.
Oh, wow, I could be a criminal though.
I could be that I refused to be bullied by anybody in this
room. Y'all went to.
Um, what universities and things I believe in went through
know I went through hell Hard Knocks. I refused to be
bullied by pain pushes. I refused to be bullied by pin
pushers. Y'all represent us.
We put y'all in this office for what? Hey Rodriguez sit up.
David sit up.
I refused to be bullied. This is the voice of a bully.
Somebody who demanded something when you shoot.
Thank you Mr. Sims. Our next speaker is Zoe lelay.
And while she's coming to the mic, um, I want to
acknowledge Alderman Ramirez and Alderman Mosley have
joined us for quorum.
Miss Leigh, good morning. Good morning. Happy belated
Mother's Day to everybody who's the mother. Um, we're gonna
start of course.
with this voicemail
true and and uh
over the long weekend, um in any event
there are 3 things you can do if you want money for
demolish property if we're just talking about a little bit
of money the Alderman's committee on finance and I'm
surprised your ultimate didn't mention that to you. Um
If this is a more serious problem when I'd rather suspect
it is and and before I fill out I'll get out. God God God
God.
Yeah, so he's still here and he has sold my family out the
alderman Moore 1744. So this is the thing that he's going
around and telling people that the reason why it was not
down was because the building violations.
now
I'm not I don't have my degree. I don't have any of that
but I do have common sense and it doesn't matter how many
degrees you have as long as you have common sense, you know
how to research it's nothing else matters.
All these buildings that are all on the South Side on the
west side that have been up forever.
They have not you have to go through a whole process. You
can't just knock somebody's building that all the more also
told my godfather that it was the wrong building. They
knocked down. That's why we were never charged anything for
the building to be knocked down because at the end of the
day, my mother was fixing the building up. It was 4
apartments in a commercial property at the bottom. He
didn't do his he didn't do his duty. So while we're waiting
for the federal lawsuit waiting for the judge to make his
recommendation for when it comes to that because we have
all of the evidence.
Patel I'm asking for you to please sit and talk to your
colleague about having a conversation with my family and
and making this right because I'm trying to tell you this
is not the first time they've knocked our building Downs.
I've stolen our property and it's not going to be the last
if nothing does not change. This is a new generation. This
is a whole new election year. Nobody's not going to
continue to deal with this. I'm not going to deal with
this. I've been coming down here for a year and I will
continue to come down here for you. Not only did they do
that and also the city also committed insurance fraud
because of my mother did put the claim in within the 2
years the city said that that she did not get her comp that
she did not get her. Um her her her claim in time and she
did get her claim in no time that's insurance for all the
city is just corrupt, but my thing is I'm asking for this
man to do the right thing because it falls on him. Thank
you.
Thank you, Miss slay.
Uh, Mr. Blakemore, you did not sign a pink slip this
morning, but but you are here so
You have your 3 minutes?
Very much and I'd like to acknowledge before you start
Alderman mitts and Alderman Cardona who have joined us for
quorum.
Mr. Blakemore, yes.
My name is George Blakemore and I'm a concerned Citizen and
I'm a hater. I hate uh, this Democratic mess that's going
on here this machine. I hate you black time both in Angel
Mama that selling black South. I'm a hater.
And you made me hate you.
if I didn't want to do it you made me hate you I'm all
America by enslaving us in this country and to bring
another group in here illegal undocumented and seeing them
getting things that we can't get you making me hate you
make a good service contractors and jobs and Health Care
education jobs, and we have to wait we have the second
class and a racist system a permanent on the class.
On the class and a caste system, but you got Black Faces in
high places.
Telling us out.
I'm a hater. You're made me hate you to watch other people
Hispanics and other people come in and get things that we
can't give.
I'm a hater.
so it's something wrong with us on the plantation the white
man made a n**** it's time for us to
of niggerism and become strong black men and women. It's
something wrong here. It's something evil here. It's
something corrupt here. It's something American here.
This is America.
She's racing.
She hates us.
She enslaved us.
walking white black talking white black driving white black
living white black in America
go to the ghetto, but you have black faces in high places
selling us out.
The Hispanic represent their peace the Asian everybody you
don't represent us.
Do not about us.
On the plantation the white man made a Niger heard yourself
of niggerism and the come strong black men and women. It's
something evil here something out of America here. So I'm
leaving the Democratic Plantation and going to Trump.
On my way to Freedom land.
the freedom land
so both of them hate us.
So what are we going to do black people? We have to love
each other trust each other help each other. And remember
this must be our motto self preservation is the first law
of nature. These people are not coming over here to help us
and thank you.
Thank you.
Thank thank you Mr. Blakemore that ends our public comment
period uh, we have 10 items on our agenda this morning. We
will begin with the monthly rule.
45 report the April report, which was sent electronically
to everyone.
Can I get a motion?
for approval moved by Alderman Lopez all those in favor
signify by saying I
opposed and the opinion of the chair of the eyes have it
item number 1 is an ordinance concerning and amendment of
Municipal Code chapter 11-12 by adding new section 11-12
d470 to establish the water leak relief pilot program. Um,
we're joined today by Chase Ren Winkle controller who will
be presenting this to us this morning, and we're also
joined by commissioner Randy Cohn,
from the Department of Water
Good morning controller.
Good morning. Chair, Dal Vice chair Conway distinguished
members of the committee on finance. Thank you for your
time this morning to discuss a proposed ordinance.
The money in this body have been inquiring about for years.
Shortly after I started a city controller last year. I was
asked by this very committee what the possible reasons were
to charge to Chicago and high water bills caused by leaks
that residents likely had no way of knowing about
there were a number of Chicago ones that appeared that day
to discuss their tragic situations leaks in their service
line between the house and the Buffalo box under their
yards in many cases had caused, uh bills to Skyrocket
sometimes from 100 or 200 dollars per a cycle to 1500 3,000
even $10,000.
This body pressed me to explain the fairness of these high
bills to explain why Chicagoans are being forced to pay for
service. They had not in all honesty requested.
Your right to press me and my office on this topic the city
provides water as a service to its residents. These
residents had not in good faith requested this extra water
nor was it reasonable to believe that they were aware of
any leaks that could be causing their bill to increase
it was and remains a policy problem the city must answer
for its residents in that Committee hearing last year. I
testified that a major reason why there wasn't clear
authority to waive bills was due to the fact that we Bond
our water and if we were to adjust this ordinance without
proper consideration, it could negatively impact the city
fiscally.
However, I also mentioned in that committee that the actual
Universe of these abnormal water bills spikes was small.
And we should be able to figure out a fair and Equitable
solution.
To that end. I proudly stand before you to present the leak
relief program a 2-year pilot program that allows
Chicagoans to adjust their water bills due to leaks and
create a period for of time for the city to monitor how the
program is processing and if it needs to be adjusted or
expanded.
To the point of cost the program will cost an estimated 1.6
million in Revenue adjustments in year 1 and an additional
estimated cost of 750,000 dollars in Revenue adjustments in
year 2 a tiny fraction of the more than 1.2 billion and
water and sewer collections. We draw in per year.
The program works as follows, if a resident notices a high
water bill, they can call the Department of Water
Management to come inspect their home for a leak. If a leak
in their service line is found then they would be eligible
to apply for the leak relief forgiveness. The Department of
Finance would review their case and if found eligible, then
the residents bill would be adjusted to the average of
their bill before the league. Let me run through an example
to give a better idea of how the program would operate.
Jane owns a 3 flat building her building has a water meter
in an outdoor underground Vault for bimonthly water bill is
typically 250 to $300 per cycle in March 2024. She receives
a bi-monthly water bill of $1,500. She checks all areas of
her building for leaks broken pipes and running toilets,
but finds nothing.
She then calls 311 and requests the Department of Water
Management to check for an outdoor leak the Department of
Water Management notices the leak on our underground
service line between the meter Vault and our home and
replaces her service line under the brakes and leaks
replacement program.
Jane applies to the Department of Finance for leak relief
for her utility bill through the llrp. The Department of
Finance reviews Jane's application to determine she
qualifies for the city's water leak relief program and
adjusts The Hive uh bill down from $500 to 275 the average
amount of her bill prior to the leak Jane pays the bill now
reduced to 275. She saved 1,225 as a result.
Bill adjustments will cover the full period that the leak
occurred even if that stretches across multiple billing
Cycles eligible residents will be single family 2 flat 3
flats and Commercial properties with 1 inch service lines
and smaller covering small businesses. The program will 1
run from January 1st, 2025 to December 31st, 2026. However,
eligible leaks will be retroactive to January 1st 2023 for
residents that had already paid the higher water bill, but
is then determined they were eligible for lrp, they'll be
issued a credit for the difference to the to be applied to
a future water bill or can be refunded directly back to the
customer.
Applications for the program will be available online or for
or residents can call the Department of Finance or even
Ward offices to be filled out remotely.
I know that this program doesn't ever answer every issue
around water billing during this pilot. I believe we'll
learn about areas where we can consider future adjustments
or expansions. However, I believe strongly that this pilot
is a major step forward to create a much fairer water
billing system for Chicago 1 that recognizes the unfairness
of service line leaks without placing the city's finances
in jeopardy.
I I appreciated your patience as we have studied this
issue. I appreciate the advocacy of many of your offices
around this important subject including but not limited to
do Alderman Dow Alderman vagus Alderman. Laspada Alderman
had an alderman Ervin Alderman cheek Alderman Lee Alderman
Ramirez Alderman. Sjo Lopez and many others. I appreciate
your consideration for this program, and I am happy to
answer any questions. Thank you.
Thank you, Mr. Controller. Um, is there any portion of your
slide presentation that you want to go through know? I just
have the programs pieces up here. I believe you should have
that in in. Um, I know that's kind of hard to read but um
in your packets, I also wanted to make sure you saw that
this document which shows the service line. You can see
this area.
on the public versus private side that service line
connecting to the house that is quite unreasonable to
expect somebody to notice a leak when it's underneath your
lawn which was uh 1 of the major areas that we looked at
for
Thank you, Mr. Controller. I want to acknowledge Alderman
Hall Alderman spa and Alderman Reilly who joined us for
Quorum. Um any questions from the committee will start with
Alderman Lopez followed by Alderman tally of pharaoh.
Thank you madam chairman and good morning members of the
committee.
Forgive me my voice sounds a little rough.
Um
the question that I had first off, let me see. I think that
this
is long overdue and I want to commend you for taking this
on.
Um
to bring this to fruition, uh, and hopefully that it goes
beyond being a pilot because the need is very great.
Um, how far back are we able to go with this program?
So, uh great question Alderman. Um, so right now based on
the records that we can check with with, um with leaks and
everything to determine we can only go back as far as
January 1st of 2023, um at this point in time during the
pilot, we'll obviously be seeing if there's other things we
can do, um going forward, so I raised this uh to you and
I'm going to say it publicly that I think that we need to
look at.
Coming up with a system to address. Uh
properties and residents who experienced lease for longer
than this period
um, for those of us that have been here 2 terms or more.
I'm sure we could point to individuals where we have been
trying to work out the leak issues, uh and billing for
going back 4 5 6 years. Um, and while I know that we may
have difficulty trying to ascertain what the actual cost
may be, uh, perhaps we can look at
Incorporating, um, maybe just a flat payment. Uh,
Beyond 2023 so if there are years where there was a leak
present
where if not the department but the ward offices can verify
that they were working with a resident to resolve this
issue that perhaps that we have maybe just a 150 credit for
that year in question. If we're not able to resolve the
nature of the issue.
I I'm happy to uh, totally understand that process and and
that was obviously part of our conversation while we're
going through this. I'm I'm very open to that conversation
very open to talking with the other aldermen to see if
there is something that obviously fiscally makes sense for
the city, but that we can take a look at things before that
January 2023 day. Awesome. Thank you. Thank you chairman.
Thank you Alderman Lopez. I'm Alderman Talya Ferro. I didn't
didn't see Vice chair. Conway's hand go up, um before
yours, so I want to call on him and I'll come back to you
Vice chair Conway.
Mr. Chairman, um, is there uh Mr. Control? Is there a
specific is there a specific budget for this or is it yeah.
Yeah. So is there a is there a budget amount or How's that
gonna work? Yeah, so when we're projecting our our water
bill, uh, or water sewer collections every year we're not
really attempting to estimate those that are that are going
to be higher, uh, because of the the unforgiving leaks. So
so it's it's because it's such a small amount compared to
it. It's it's it's just 11 its Revenue that is being um
foregone in that way. Yeah. Um, so that there doesn't need
to necessarily be a specific budget for that. Now there's
going to be additional staff most likely necessary to
process these we think probably 4 FTE so that would be
around 400k for those and then 2 accounts which is 172.
That'll be debated during the management ordinance. Um, and
we can justify that cost and
We would need to do that through um, you know looking at it
do we have the money to be able to do those? Um, just to
get an idea of the scope of the problem in your in your
research any estimate of sort of the total rebates that
will be given so we um, we had seen that uh, there's
roughly a thousand what would be called water spikes? Um,
that might be 5 times more than the previous bill now,
Those aren't all leaks. Um, a lot of those are also
buildings that have been turned from like residential to
commercial or there was other additions there those
obviously aren't going to be requested through. Um, so it's
it's likely smaller than that number now to comparison for
every month. We put out 350,000 water bills. So this is a
very small component but each of them into and that's why
I'm saying it it, you know how much that costs in Revenue
loss. It's it's like 1.6 million compared to the 1.2
billion. We're bringing in that made it very clear
physically that this was the right thing to look at because
for each of those individuals, it might not matter as much
to us Revenue wise, but if they went from $200 to 10,000 is
devastating. So yeah. No, I think I think it's wonderful
because it's clear in this case. The fault is arguably the
cities not the customers and we can't have the customers
assuming they're Pipe Fitters or Engineers or anything like
that. So in in light of our our hearings the last time
really appreciate you.
You uh, you tackling this and try to solve this problem and
happy to support it. Thank you madam. Chairwoman. Thank you
Vice chair Alderman Talya Ferro followed by Alderman
Rodriguez.
Thank you madam, chair, um just a simple question as far as
operational. Um
Jane just called in and and and uh complained about
her vaulted meter that she believes to be uh leaking.
Um, what's the procedure and how long is it going to take?
Um for Jane to be serviced? Um, I just had uh in my ward
the you know, this happened, uh 2 times recently. I want to
thank the commissioner, um, as well as uh, Mr. Grow for for
assisting my my constituents, uh with uh, what they believe
to be a leak.
Um, but operationally, um, what's the how long is this
going to take uh for to get some service over to Jane, um
to determine whether or not it was a leak that caused her
water bill to go up.
Yes, um and I'll I'll turn to water on the on the timing on
their folks to get out. I know they've been trying to
improve that process just real quick on the fiscal side, um
for our so if we receive the application on that on that,
uh leak, um, we would there would be no any penalties or or
or wait while we're doing that is waived and pushed and for
the entire time that there is a leak. So let's say it's
multiple cycles that it's taking.
Get that replacement. We do the average there because it's
it's still determined that uh leak. So before you can yeah
do the fiscal side. Um, do you have to coordinate with
water to ensure that it was a leak in the vault we would be
coordinating with them. Um, and and that would be part of
the process for them flagging that for us getting flagged
is that there was a leak there, but we can go back
retroactively if it's determined later that that that was
the case. Okay, so let me pass it over to water.
Okay, just explain their response time. Uh, hold on, um,
Mr. Compa point of information. Yeah Alderman Mitchell.
So yeah.
Can you speak?
How does that process get a initiated? Yeah, and also speak
to how does the private drain program come into effect
here. They'll do the do the owners have to have that's a
separate question. Can we go do the do the first 1? Okay.
I'll I'll answer that and then pass it over and then that
could probably be answered also by the commissioner. So um
Like with the example, so Jay notices the water bill gets
it much higher can't figure out what's going on calls
water.
To come check for leak. They determine the leak in that
water is going to say here's the leak program. All right,
here's the sorry. Here's the uh leak relief program. Um,
you can fill it out electronically, or you can call it your
Alderman who can help with remotely or we can call it out,
you know that sort of thing like our other programs and
that process starts us reviewing now, we're not going to be
doing any penalties or anything like that during that time
period and then if the leak if there's some reason that
keeps going and it's a while before it's fixed it's the
whole period that we would be doing the because obviously
that's not on the customer at that point. Okay?
Sorry.
Good morning, Randy Conor Commissioner of water. So the
idea would be to once they're uh, once we get the
notification of the leak that we will be out there within
48 to 72 hours to determine if there's a leak and who uh
and whose fault it is once we determine whose fault it is
then we have to go through the whole process of going
through on uh, going through Digger so we can make sure
things are marked so we don't hit anything else and that
process is usually 48 to 72 hours. And then from that point
we can get it into the schedule barring any other major, uh
water sewer emergencies.
a um
a mass number of people to call in requesting a service
because of their previous water bills.
And do we have the Manpower?
Uh to handle a huge number of calls should this matter
pass?
Yeah, uh, I can take that uh real quick because it it is a
limited number. Um, so we like I uh, we in the the universe
of of a year is about a thousand and we uh individual cases
out of the 350,000 that we get. Um, now not all of those
are going to be leaks. So, uh in the first year, we do
expect there to be a larger Spike because obviously we're
going backwards. It's the first year. Um, but it it is a we
do believe that we have enough, uh manpower to handle it.
Um, we will be obviously judging that during the pilot
process to see if there is additional assistance. We're
going to need okay. Thank you madam chair. Let me just
thank those that uh that champion for this is wonderful
idea. Um, but let me thank those, um that are listed in
your opening statements at Champion for this and as I want
to thank you as well. Thank you madam chair. Thank you.
Thank you Alderman Talia Ferrell Alderman Mitch. You have a
point of clarification.
Okay, I'll put you down for questions, uh Alderman lepat.
You have a point of clarification or questions.
Question you have a question. We'll put you down for
questions. Just raise your hand. I got you. Um Alderman
Rodriguez.
followed by Alderman Moore
Thank you madam, chair. Um, so glad there were taking this
effort and addressing.
Uh an issue that I think it's each 1 of our Awards. Um, I
had a question regarding capacity that I think you've
largely okay, uh talked about however, I you know,
we we need to continue to
think critically about this capacity issue because my gut
says you're gonna have a ton of applicants even some who
may not um qualify knowing that they don't qualify and
still trying uh, and that's going to take significant
capacity. I don't know if you have anything else on that.
Yeah, we gave a lot of thought about that because you know
any new program and we saw this with ubr and uh CPR and
some of the Forgiveness type programs getting you know, an
x amount beyond what would be actually uh eligible for for
a program.
1 of the reasons why and you know historically we've done
Pilots is also to make sure that we have a contained period
where we're we can provide feedback to the city council
saying hey this isn't working. This is working. Um, this is
where our capacity is and then we can make a determination
at uh at that point what is necessary we
We see it as a smaller Universe right now. Um, but we will
see how that process as we go forward and we'll be in
constant contact with Council on how that's progressing
because I know each and every 1 of them. Everybody here has
at least 1 case that they've they've brought up that that
is truly tragic in that situation. So, um as we dug through
the numbers, we we saw that it was a smaller than we even
kind of expected. Um, which allowed us to kind of build to
this size, but we I here you loud and clear and we'll be
definitely checking in and out on that. Well speaking to
that. Is there a formal uh process laid out here for you to
report back on this pilot. I think it's very interesting
pilot. Um, I just want to make sure that it's airtight and
done. Well so that when we come back, yep, we have good
results. What's the uh, well, we would be reporting it
during the management ordinance like we do with our other
programs. Um, but I'm happy to commit to a specific
Time once we're we're we've got some de data. This program
is effective starting January right of 2025. So after you
have we've passed on the budget we'd have to have you come
back sometime during January. I mean during 2025 and we can
work that out excellent and and the just the just the the
last point was around statute of limitations my
understanding January 1st, 2023 is to begin date, so it's
retroactive. Yep, but there will be forgive me a 1 year
period to apply essentially 2. It's it's a 2 year.
your pilot or through so if you if you were if you had
for whatever reason in 2025 decided I'm I had a 2023.
Leak but I didn't get to it. You could still do it in 2026
and leaks in the subsequent years in the existing program
are also eligible for yes. So going forward and then once
we report back and then if we wanted to expand or or move
forward, then that would be like any other pilot. Very
good. Thank you madam chair. Thank you Alderman Rodriguez
Alderman Moore followed by all the men Mitchell.
Yes, thanks chairman and happy birthday. Um just
Thank you very much Alderman Moore. I'm grateful for
another year. Amen. Just
You know how people gas come out and check to see if we
have gas leaks and I think this would be the a question to
the uh, probably the commissioner because that too
overwhelming for us to do whether it's on
That by I mean, you know every 2 years or once a year, how
is that even feasible or possible for us to do?
This point it is not something that's feasible for us to do
on a regular basis. Um, that's why we depend on homeowners.
Like if they see a spike in their bills to let us know and
then at that point we come out and we initiate the the the
testing okay and my second question chairman, um is to the
controller, so I understand this is a pilot because I'm I
do understand that if we're starting at zero, right and um,
the city has like no money and no money doesn't we don't
get money until somebody use their water. So I use my water
and then that's when I pay my bill based on the water that
I use now if I have a leak and I understand because we
don't have any money and if somebody find out that they've
been running all this waterfall this time, it's okay. We
didn't have no money to budget to pay them for all of this
water. Right and that's why we're doing this pilot and stop
me if you're not following me, um, then but then that's the
other part that
that I'm paying.
because I'm thinking hey this
they are right but then I find out they're not right. Now.
You have my money that you didn't have because there's some
way we can do for the people at least paid to reimburse
them.
Even beyond the pilot.
Uh, tell me if you if if I'm not on the right track because
I think I understand the question. So, um, the the reason
for the pilot is is is to make sure that you know, these
are estimates, uh year in year out on who's going to be
using and where we think the major issues are and like what
we had with uh, the ubr program the income assistance 1 we
wanted to make sure we could handle um, what was coming in
we could adjust um, any contracts that we needed to that
was related to those and then we could make recommendations
city council. Hey, this is not going far enough or or this
this went too far. You know, what have you in the ubr case?
We determined you know that act we actually should include
Flats. We weren't including them we needed to after review.
So now we're going to include those 3 Flats the same
reasoning applies here. We have the eligible.
Usage we think that that's the major component here and
that we can fiscally handle there might be within 2 years.
We determine that that doesn't go far enough. Um, and that
we need to adjust at that point from a from a cost
perspective. You're you're absolutely right. So somebody's
paying their water bill, right and then it's determined
later. Oh, hey, uh,
you know, actually that was a that was a leak period you
didn't owe as much then we would either credit or or they
could reply for a refund. So that that component is not the
concern of the pilot. It's more of gathering the
information around leaks. I don't mean to cut off you did a
great job and I know that's not the concern but it's now 1
of my concerns though because I'm saying because we don't
have that in place right now, right? We don't to help those
ones that paid it already and I'm just saying is there is
that something that could be I understand the other part of
the pilot because that's 1 man. We're not we don't have
money for that. Possibly we have to budget it for that.
That's why you budgeting for this and the pilot, but I'm
just saying beyond the pilot.
For the ones that have paid because that's money that we've
gotten from this. Yeah. Yeah versus money. We haven't
gotten but the bill has been going up and I'm just asking
for a credit you following what I'm saying? Yeah you and we
would as we got closer to the end of the pile. We'd
obviously approached about
What's going to happen to the population going there? I
couldn't I couldn't tell you right now that we would be I'd
be open to obviously moving beyond that we've successful
pilot. We wanted to continue like we have with all of our
other programming um, and obviously within this time period
people would be eligible for that credit. I got that. Um,
but I think that would be something I'd have to come back
to see I just want us to look at you know, um, you know,
whether it's after the pilot or sure because that's with
the pilot is only a limited amount.
amount and other people I'm just concerned about those
people who have paid and then whether they they applied in
the pilot or afterwards the fact that they pay it. I think
they should be reimbursed and we can discuss that. Yeah
offline and see how we incorporate that into the orders.
The other part is difficult because some people saying they
say, I'm not paying this High Bill and then that's like
becomes a credit but they probably waited over time and
just kept waiting and waiting. So yeah, and I and I'm happy
I and like with our other programs it became permanent, you
know, we would be having these conversations and I I commit
to the chair that we would come back and be like, okay. So
here's where we're at. Here's what we think makes sense
going forward and we can have that discussion. Absolutely.
All right. Thank you. Thank you chairman. Thank you
Alderman Moore. Um, that was very good point and we can uh,
make sure we follow up. Um as the body with the controller
on that Alderman Mitchell followed by alderman viegas.
Thank you chairman, um in the
section 5 in the or in the uh proposed ordinance
um says as determined
um
Leak was repaired on January 1st 2023 eligible leak period
means the period when the eligible leak impacted the
property owners utility bill as determined by the
Department of Finance. I know you kind of touched on that
can you could put a little bit more clarity on to that and
include how
letters sent to homeowners when there is a spike.
Uh, how is that factored in so so the great question so um,
When when we talk about impact, um as soon as the as it
we're moving past the average of your your previous bill,
that would be the period that we would work on determining
if we believe that's the start of the leak. Now, that would
be a conversation with water management and they can
sometimes tell us and that's why it's a little bit looser.
There is sometimes it's you know, our our normal definition
of a spike is 5 times the previous Bill there are
situations where sometimes it's 3 times the private, uh
prior bill because there was some it was small and it was
and it got bigger as a as a leak that would still be a
period of the leak. Um, and we would we would fall on to
being let's be the widest on that reasonable period and
that would be a conversation with us in water management.
Okay. Um,
Are you able to put the slide that you had?
The 1 before I got there.
Nope, there it is.
so
in in in
where was it located you made a distinction?
Oh, I'm sorry. No, it's on the original order. It's an
ordinance still in 5.
A water service, um property owner means the owner of a
single family 2 unit or 3 unit residents.
or commercial property with a water service line of 1 inch
in size or less why the distinction so the so yeah. So this
was a a conversation with Department of Water Management.
Um, so those 3 residential areas, um, uh, which is part of
the ubr program. That was our initial cohort was to look at
that population mostly because we have the capacity to know
know to respond to that population right now. Um, and those
are the vast majority of our our family locations that are
it's they're the least likely to notice that they have an
issue early.
However, after we had a discussion with water management,
they had brought up that there's a lot of small businesses.
That obviously wouldn't apply for the ubr program but
they're going to have the same issue as those folks and
they're distinction. Is that 1 inch is is those are all
your small storefront type locations as opposed to those
huge. Uh
Um, you know industrial, uh, uh buildings, um, they would
probably notice right away that they had a water water
issue. So that's that's the distinction. We wanted to
capture the small businesses. And that is that was the
determination after talking to Water Management. Now as we
go through the pilot, we're going to be collecting
information on those that are connecting with us that uh
aren't eligible for whatever 1 of these categories and
we'll be reporting back to make sure we're like, well we
missed this population because right now we don't we don't
do that type of research based because there is no program
um and Reporting back. We need to expand this to this
population or that population.
Okay. I hope that answered your question. Yeah. Yeah. I'm
I'm sure I'll come back here. Yeah more um under
eligibility and eligible leak is a leak on the customer's
outdoor underground service line in a location that would
impact the customer's bill. Yeah. So any any spike is an
impact C customer bill.
Well the service line in a location and this might be a
question for uh for commissioner. Oh, I can go back to its
their know you have okay. Yeah, so see the green section of
the service line so it would be in that area. Okay, so it's
on the private side. It's on the yeah, because the public
side that's that's us right now. Okay, but if it's on the
private side like there's no way.
Anyone would know.
Until they saw their water bill that that that is leaking,
right? Okay. So that was our concern is we get a lot of
those calls about you know, people people call us about
running toilets and they they're like look, I know I should
have gotten this that this is the area that we saw that was
not the that's where the true horror shows were happening
to those point of information Alderman Lee. Yep.
Thank you chairman. So just while we're on this subject and
thank you Alderman Mitchell for the question. Um, so if I'm
reading this correctly if the leak is found there then uh
what your what the pilot is, uh subject to is, um, the the
additional cost of the leak, but the repair of the line
must still be made by the by the property owner. Yeah. So
so, um replacement and the commissioner can go over the
breaks. That's why we brought this that PO component of
because of uh, specific issues that they're not allowed to
repair on the private side, but they are allowed to
replace. I don't know commissioner if you wanted to bring
that up, that would be correct. Um, we once they would have
to make the initial repair. Sorry commissioner, um Connor
I might have bad bad bad ears, but you sound muffled. Can
you just bring the
is that better? Yes. Okay. So you're correct. Although, um,
the initial repair is the responsibility of the homeowner.
Uh, and then once it's repairing they go into the leaking
brake program and then we get them scheduled to go in and
uh, replace the entire service line from the main, uh into
the household, but it's a whole process from the engagement
part making sure that we get in and we understand what
we're up against how we're going to program it and then we
get the we get the the last service line replaced. Thank
you. Thank you. Thank you Alderman Lee Alderman Mitchell.
I'm going back to your slide.
This 1 or the 1 before the 1 before, okay.
I'll get this eventually.
Go ahead under eligibility again. Yeah.
Application must be provided social security number then
you have proof of residency. Yeah, a lot of our properties,
uh, commercial properties are owned by people that live
outside of the US and outside of the Chicago. Yeah. So how
does that pay? So it would be within the so when we're
charging the bill we we have
it would go through that proof like we do with the ubr
program. So if you're paying the water bill, that's that's
the that's the proof on the commercial line.
So we have it under a certain name, uh with the water bill
currently. That's how we're charging them. So so the butt
but if I'm understanding that the water bill is tied to the
pin and the pin is tied. Yeah, but they're they're
but that it has to go to somebody to pay it. Oh, okay.
Alright. So if they can provide proof of being built, they
would be the 1 though. Okay. Yeah, so
You know, they're approaching us with their water bill.
Okay to assess their yeah. Okay. Now how does the when when
a a homeowner wants to process? How does does they do they
have to work with within the private drain program or is
that a factor? Do they need the city of Chicago? It's not a
requirement. It is not a requirement to work through that
program. Um, you know it with the replacement obviously we
would be replacing them, but it it is not a requirement.
For to to have that forgiveness they can go through the
application process.
You know if they did everything privately and okay now what
what if we have what if we have uh constituents where they
went through the private drain program in the problem was
found on on the city Side. Do you go back and determine how
impact that impact that they're building? So so so that's
even if it's outside of the pilot period so if uh, so that
separate from this program if it's later determined that it
was on the city side and we we forgive that component
because that is that's
That's currently that's not there was a Mis in that case. We
were mistakenly billing billing. Okay. Usually we work with
a law department on how to work that out. Okay last
question. Um,
Meter accounts versus 9 meter accounts. How does that
impact? So this is just for metered and I'll explain why
for non-metered. It's an estimate so they wouldn't see the
spike because there's nothing being read there. It's not
it's based on estimation not on now if they switched to the
metered where then there was a spike then they would be
immediately eligible because of the it's now a metered
account but the non-metered since it's an estimate there
isn't that risk for that Spike because it's an estimate
every every okay. Yeah conversation for another time those
accounts that are on the non-metered.
very open to that conversation and would love to talk to
you further about that. And that is something that we have
been thinking about as well as vacant properties that are
kind of in between and I'm we're all very
Open to that. Okay that okay. Thank you chairman. Thank you.
Thank you very much. Um Alder Miss. Did you have a point of
information or yes to um ottoman Mitchell's question
question regarding, um the bill how far back are we going?
Because wasn't it at 1 Point? Um if there was a water leak
The bill, uh letter would come out from Finance to the
customers. It's it did not.
the debt stopped and if so, what point in time
so did it stop the reason why we are trying to figure out
now about water leaks that some am I missing something here
where?
Something stopped happening to the customers why they
didn't know they had a water leak.
So so so it's it's more to the impact. Tell me if I'm so
I'm going back to here.
Okay, so
there we've we had situations where there's a leak that
that has not the question. I'm asking has nothing to do
with. Okay. Sorry. Yeah hoist them up I'm asking is.
Why are we dealing with the water leaks when prior years?
Saved for 5 years back. He was getting letters from the
Department of Finance that you had a water leak. So did
that stop? No, no. No, we we do we do notify but they're
still on the hook for that amount. Well, what a breakdown
at something broke down while we were doing even during the
program so no no no.
Even when we're sending out a letter that says there's a
water leak there's still responsible even in that situation
at that time for that amount of money that is charged to
that bill.
so that was that was only for uh
Warning them about those bills now. We did also move away
from shutting off water. Okay. So if you warn them about
the bill, then the consumers would contact the water
department. What did they do about that bill? Why nothing
was ever done?
It was against ordinance to fix the bill to go back prior.
So this is adding away so that we can fix that bill.
And what Alderman Lopez is saying is that um and Alderman
Lopez, correct me if I'm wrong. You're suggesting that we
look at going back before 2023. Absolutely. Yeah, okay, and
he's committed to to to doing that. Yeah. Yes. Okay. I'd
like to acknowledge Alderman Hopkins.
Um who has joined us for Quorum Alderman viegas followed by
Alderman spao followed by Alderman Lee.
Thank you. Thank you. Madam. Chair. Can you hear me? Yes.
Thank you. Uh, I'm glad that we're finally here and and
Madam chair. I want to thank you for um, hosting the
hearing August 1st as we've been working on this for for
for quite some time. And and it's it looks like it's a good
day and during my staff's research around this issue. It
was determined, uh, as the controller was mentioning that
they didn't have the flexibility to allow for remedies
around the air the water billing errors, and there was
was another item where you know, as let's certain death and
taxes. The water bill was the added to that to that item.
that item. Um, so I'm glad that we're here today is an
important step in finally remitting and issue that is
placed Chicagoans for too long.
As I stated we did not get overnight for 5 years. We've
been hearing from residents under the horrific experiences
with outrageous water bills. Today is for DeLorean and
Robert Johnson who were charged 60,000 today's for Scott.
Rosen wag who was charged 44,000 today's for Andrea Gardner
who was charged $80,000 today's for every Chicago and has
been harmed and had their livelihood disrupted if I stated
in the past the government's role in people's lives has to
be the help not harm. I also want to give a shout out as
well to the phenomenal reporting of Brad Edwards and CBS
News who have been steadfast with their coverage on this
issue. It's because of their reporting that I was made
aware of this issue and that residents were facing that
finally pushed the city council and to take action.
Uh, they expose apparent bills, uh folks were facing and I'm
glad that as a body we've convened today to write this
wrong. The water relief program will provide much needed
assistance to constituents that have been asking for help
for a long time. It provides a pathway and a course of
action for property owners to resolve their grievances.
This is a transformative program 1 that our residents will
feel the immediate impact on and at the propriate time
Madam chair. I asked to call the question. Thank you.
Thank you Alderman viegas Alderman spas.
Yeah, man. I'm chair. Happy birthday to you also, uh
Mr. Controller and uh, Mr. Commissioner, good morning to
both of you. I I have everything's been said, all you want
to say is long overdue glad to support this. Uh, we've all
heard some heartbreaking stories from some businesses in
our Awards some residents some
Apartment buildings, whatever so I'm glad to see this
happen. Um, I kind of always looked at it. It was kind of
like blood money. Um, we're getting money from people that
did nothing wrong other than not know they had a problem
and then we're also not talking about the cost that cost
them to fix their problem also, so I wanted to get whacked
with a TENS of thousand dollar water bill possibly also,
you know tens of thousands of dollars of fix it. So I
wholeheartedly support this long overdue, but better late
than never, but thank you for bringing this forward and I
look forward to the imple implementation of this. Thank
you. Thank you madam chair. Thank you Alderman Alderman Lee
followed by Alderman Mosley. Thank you madam chair and
happy birthday.
Say to you too. Um
I want to say first and foremost. Thank you to you for your
leadership Madam chair and to you uh control for for
hearing us on this, um and for following through and for
continuing to do so, um, I'll Echo the comments of some of
my uh, my colleagues, um for us to take a look at what it
would what it would take or what it looks like to go back a
few more years. Um,
I do think that you know, I I understand the challenges of
doing anything like a a refund like I work for an airline.
We never gave money back if we didn't have to because that
that has real impacts, um on our on our bottom line, but
um, I I really appreciate the creative approach you took to
this, um, uh in in having it, uh, you know, foregoing
revenue is very different than than actually, you know,
having a a line item where it has an actual cost. Um, I've
got a question about uh with the with water meters and I
know the water meter technology is a lot smarter nowadays
and this might be a question for the commissioner. Um,
At what point are we sending out messages to people saying
that you might have a leak when we see the spikes as I know
water meter technology is such that we we can tell these
days. Um, so that's part 1 and then part 2 is, you know,
resending that out in multiple languages.
Uh, yeah, I think partially that might be uh commissioner
Connor, but I'm happy to go on the language side as well.
so as it's my understanding and I have to get into it a
little bit deeper that once it spikes, um, there's a couple
of cycles that it goes through and then the system kicks in
and let people know that that notification goes out. Um,
but as far as the technology for the meter itself, we are
looking to start replacing the meters, um over the next few
years so that we can keep you know, get on the uh, the
upgraded technology where we're not necessarily using uh,
radio signals or people driving by to using meter readers,
but we're actually going to start using radio signals and
other technology that such as the street lighting system to
be able to get those meter readings great. Thank you in
terms of notifications and and I'll just acknowledge you
you've worked with our office, uh before on other items. I
I'd have to double check. Um, but I'm happy to try to do a
similar thing like we've done with our other programs and
look at I think right now for other programs we have
uh
English Spanish polish Korean and Mandarin. Um, and I'd be
happy to look at a similar.
Uh what we can do capacity-wise on there to make sure I I'd
love to be able to and work with you maybe on a different
pilot, you know within my own word to help you identify
households that I think would be likely um to to be able to
benefit from having uh, the notification sent in 2
languages, you know, just with what we see walking in the
door. Um, I can tell you that it would be really helpful,
uh, happy to work with you. Um,
and then um
Finally on on the fixing the leak and I I think this is
what Alderman Spas was. Also alluding to um, you know, you
send out a notification that says hey you might potentially
have a leak.
The through through whatever the program is the it's
determined that there is in fact a leak and it's on the
private side. Now. It's up to Jane the homeowner to do it
Jane. The homeowner doesn't have enough money to fix this
problem. She's going to continue to rack up this water
bill. How are we handling that?
great question, so
And this is probably a longer discussion. Um, but I'm not
avoiding. I don't want to avoid your question. Um,
so they can they can apply for breaks and the replacement.
Um, if they were to choose in theory, they could wait until
that time period that would be covered under the leak side.
That was the leak was the whole time. So it would go back
to the average of their bill and then the break would be
the replacement would be covering that.
Um, I think we're we're open and this this actually goes
back to some things around work that can be done on the
private side. Whether repairs are part of that component.
That's a much pointier issue. Um the replacement from what
I understand in talking with water, that's something they
were allowed to do under our current rules and how how that
bloodline Works. Um, so in theory, I guess they could wait
until that replacement. Yeah, but uh going forward and
And having a discussion around repair on the private side
since we have this leak program now, we'll be collecting
more data in this area. I'm I'm happy to keep that
conversation going. Um, but but at this point in time, my
understanding is we're we're not able to okay, um know and
I think that's fair. I think we're going to learn a lot in
through this pilot, um excited to share this uh with my
community. I'm full in full support of it. Um, and look
forward to working with you more on a making it even
better. Thank you. Thank you. Thank you Alderman Lee
Alderman Mosley followed by Alderman sichel Lopez. Thank
you madam, chair, uh controller and commissioner. Excellent
work. It's great to see the appointments coming in and
getting right to the work, uh that we talked about in your
confirmations. I do want to ask you controller when we talk
about. Um, uh, is there any relief or what assistance is
available for um, folks who will go through the process of
resolving their debt with the city. Um,
At a time of when they're selling their property or for
instance s Biff's, uh, you have to resolve your debt with
the city or even employment with the city. Um, is there an
opportunity for
If they resolve that debt for them to be in reimbursed or
credited.
to determine so if we're um, if if you had debt water
backlogged debt
that is water related. Um, and you thought you know, that
might have been a leak, but it wasn't resolved and it's
within the time period yeah, you can
you can go through that process. And again, we would we
would request that go through the application side. Um, and
that would be forgiven. It was a her term there was a leak
during that time period and then how that would be provided
to the customer.
either they would get a credit that they could use in
future water, but
For selling the property I would imagine they wouldn't
really want that.
Instead they would get the credit and then there's a
process we have currently when you get a credit on your
water account could then just get it reimbursed as as a
payment back to the individual great great. It's great
news. Also, can you talk uh about
how someone can not receive a bill uh for a year or so for
instance. I've had a constituent come in, uh, their family
member was the owner of the property their family member
transitioned and uh, they received no bill, but then a year
later they received a notice that this has gone to
collections and they just felt that if you know, yeah at
some point in time.
If we were able to find them for the collections, why
wouldn't we be able to find them for the billing? Yeah, and
this has come up. Um, and we we have been working on
improving a process. Uh, it's it's
it's rare, but not
Unheard of in that when somebody who had the bill under
their name, maybe they were having the bill sent to their
office instead of the location and then they they pass and
then that Bill's still going to the location.
But no 1 who's around is aware of the bill or where that is
going on. Um, and we're working on our communication to to
strengthen that and many of those situations if if it's
like a year later and it goes to collections. We work on
trying to figure out hey, you might still owe the actual
principal amount, but then we can look at the finest and
the fees and and see like was that a reasonable situation?
We have gone back in the past and tried to get those away.
Although the the actual principle is still owed in that
case. Um, hopefully as we improve our Communications, there
are less and less of those. Um, I do want to say
For Alderman that do experience those. Please contact me
directly so we can get working on that right away to see.
What issue was caused so we can try to resolve that as soon
as possible?
Excellent work commissioner and controller. Thank you madam
chair. Thank you Alderman Mosley Alderman Quinn followed by
Alderman Ervin. I want to remind you we have 9 other items
on the agenda.
Alderman Hopkins, I'll add you to this list Alderman, uh
CEO Lopez
Um, thank you. Um
Chairwoman. I really appreciate first of all for most the
urgency on this matter appreciate the hearing and this item
being in front of the committee and is certainly a step on
the right direction. So first and foremost, let me make
clear. I'm fully supportive of this pilot.
um
I have just many of my colleagues already discussed and
answer um or question some of the things that I had in
mind.
1 of the things that I do want to get a little more clarity
is about how these leaks are determined and confirmed by
the Water Management Department. Um, so
I think that 1 of the concerns that I have is how this
proportionate this that has fallen in. Um, um, some of the
poorest areas of the city. So I want to check on you know,
how the data that you have but I'm concerned about because
the water management department in particular had been uh,
really scrutinized over discrimination.
Policies uh within the department. I want to make sure that
that does not translate into how this debt is being uh
confirmed. I tell you that in my own experience that this
is before this Administration. So I be clear. Uh, I myself
was able to verify, uh that there was put in the there was
in the shoulders of the resident. When is actually at the
end of the day after an investigation was actually city
property. So I want to make sure that we are consistent in
the determination of the debt and maybe you can give us a
little bit of um, uh, so 1 question is for the department
and making sure that the practices of the department are
not being uh, put in the burden in communities that are in
purish and really hurting right now. So or department has a
due diligence and a responsibility to make sure that the
debt is first, uh, Riley determined and second maybe from
um, the controller maybe some
information about how this debt has been distributed
throughout the city.
Yeah, and I before the commissioner responds, I appreciate
the question Alderman and I and I have appreciated when
you've reached out.
Directly on some really challenging ones to try to encourage
encourage to push back and make sure that we're really
looking at the root issue. I did want to say that sense
commissioner. Connor has come in he has been
Very active in trying to make sure that when we're when
we're in area where there's a gray Zone to really go back
and take another look and I've I've appreciated that. I
know he's been here a short period um, but I expect that uh
that relationship to continue and and and you have my
commitment to always to make sure that we're going back and
making sure double checking uh, and all the situations, but
I'll I'll pass to the commissioner.
So then go ahead. So on complaints coming in. Um we go out
and we do a couple of different things but we will sound a
service to see where the leak could possibly be on the
service if it cannot be determined by that. Well, then we
will dig the service and start digging until we find it
regardless of what neighborhood we're in. That's just our
process. Once it's confirmed then we determine where work
has to be done. And if it's on the homeowner side, then we
do we have them work with the Department of Finance to go
through the leak relief program. And if it's on the city
Side, we fix it. All right, and then it's just and it goes
into the leak and break program to replace the entire
service line.
Thank you. Uh, thank you commissioner. I do. Um, I do want
to make sure that in our departments again, there's no
discrimination. Um, just given to um, the background of the
homeowner or a small business. I tell you that a few years
ago. And again, this is new. I'm not putting this on the
new Administration. Uh, but I verify with my own eyes a
business that I was being charged 20,000 for a debt that
they later was determined was not responsibility of the
business and what that can do to a small business or at
home owner is the devastating that we have right now people
could lose their property because of water debt. So again
and worse when that could be an error, right but the
department so I just want to make sure that we are clear
right and again discriminate discriminatory practices
within or outside the department, uh, unacceptable. Uh, I
still have pending and I, you know controller, um, again,
even in the case of an um, another homeowner who has a
$1,000 death
Debt, um, we're trying to do everything we can um, and and
and a thing to me the fact that we still are charging based
on um estimates and not based on consumption to me. It
represents a still a challenge. So I don't I know that
we've been working uh diligently, but also we like to ask
of the finance department. Um,
A little bit of Grace with the small homeowners because I
see a lot of Grace given to um interest that have the money
to pay. So I want to make sure that we work to get this
step on the right direction, but I do challenge the finance
and the Water Management Department to work with each all
the person to determine in each case when we can do more
because I think losing a business was or or a property out
of that that sometimes can be disputed to me as an
acceptable.
totally understood
the Lopez Alderman Quinn followed by well, when excuse me
before you start Alderman Quinn our vice mayor has to leave
to go to a ribbon cutting and he wanted to address the
committee. His agenda item is next. Thank you very much
Madam chairman and publicly happy birthday again to you. I
know we've been telling you happy birthday all day. Um,
so thank you very much. So I just wanted to make note of
item 2 and item 3 both in my ward 1 is a uh a taxes in bond
issue for the Avenue Southwest LLC. I supported 100% This
is a uh,
This is a African-American developer and some non for-profit
developers working together. It was an invest Southwest
project that couldn't get funded. So they figured out a way
to do it with the bonds. And of course they're going to be
coming to us with some other things. But this the community
is very excited about it. I supported 100% the other 1 is a
excuse me Alderman. It's a private activity Bond. I just
want a private activity bond that clear. It's not the Geo
Bond we just passed.
Okay, private activity private activity bond, which they're
going to pay. Right? Right. So so so, uh, I appreciate the
support on this. Uh, we supported 100% And also, uh, I'd
like to say our support the Tif money going for the 598
park at 1514 North Larrabee has been in the process for
many years. I appreciate the park district and planning and
everyone else for working on that and also thank my
colleague. Uh, Brian Hopkins who's right across the lra
from me that's connected to it, uh for working with me on
this, uh project. Thank you very much. Thank you vice
mayor. Um, we'll now go back to our water leak program. Uh
Alderman Quinn followed by Alderman Ervin. Thank you madam
chair, um, congratulations comp controller, uh job job all
done here. Um, just just to add something to the pilot for
consideration moving forward 1 of the complaints I get
From my constituents Beyond, you know the cost of doing a
dig in their front lawn is oh by the way, you gotta restore
the sidewalks.
and they don't have the proceeds to restore the sidewalks
and sidewalks are open and um, I I've covered a couple in
menu, but if that's something that we could potentially
think through. Um, it's just makes good sense, right? Yeah.
It's it's challenging, you know, as you go to as we went
down this this road, there's obviously other items not just
the leak, um that we will continue to have conversations
with Alderman about on what we can do fiscally versus you
know, what we can um, figure out through different means,
but yeah, that's definitely on our list of things to review
and I and I appreciate it. Thank you. Thank you madam
chair. Thank you Alderman Alderman Ervin followed by
Alderman Hopkins.
Oh, you got 1 more. Uh, I was going to say everything has
been said yet not not by everyone and call the question.
But uh, um, I guess I'll wait after almond Hopkins, but I
do put a move to pass on the table, right Alderman vagus
had made a motion for due pass and before I called it. I
wanted to finish the questions up Alderman Hopkins.
Yeah, thank you and happy birthday. Madam chair wish you a
blessed day and uh year of health and happiness. Um, I'll
be quick. Mike question may have been covered earlier. But
as we uh, go forward for the pilot program and we look at
situations where the ruling will be that the homeowner is
ineligible because it wasn't a service line leak. I
predict. Most of those cases will involve leaky toilet
valves, uh, many cases the valve will have been repaired
because that's an inexpensive fix by the time it comes to
our attention. Uh, are we going to keep track of those
cases? So at the end of the pilot we can talk about the
percentage of cases that involve that maybe look to to help
those folks as well great question and the answer is yes,
so we will be uh similar to ubr we kept track of the
ineligible folks. And then once we expanded to the 3 Flats,
we had that universe and actually then sent letters out to
those folks saying. Hey you you might now be eligible.
We'll be doing something similar. Okay. Thank you.
Thank you Alderman, uh controller I too wanted to just uh
congratulate you on moving this forward, uh, you and
commissioner, uh, Connor, uh, you have been since you've
come in here a problem solver for the people and appreciate
you rolling up your sleeves and uh addressing some of the
long-standing issues that we've raised in several areas in
the finance. Uh, so thank you and with that, um, Alderman
viegas previously made a motion recommend,
recommending to pass all those in favor signify by saying I
opposed and the opinion of the chair the eyes have it and
the motion carries and we'll report this out at the next
city council meeting on May 22nd. Have a great.
Yes, Alderman Ervin.
Thank you madam, real point of personal privilege. Uh, I've
been asked by the uh staff at Kofa for all of us to do our
uh surveys for arpa. We've got a arpa meeting coming up. I
think uh, right after Council. Uh, so, uh, we're uh staff
is asking everyone to do their surveys. So please check
your emails for the arpa survey. Um,
In your email box in your city and personal if I have it.
So please check and let's complete those surveys and also
happy birthday. I like that color. Yeah. Thank you. That's
a nice way of uh, getting your point in appreciate it.
Um item number 2 from the Department of Housing is the
ordinance concerning the issuance of multi-family housing
Revenue tax exempt bonds for the Avenue Southwest LLC for
the development of affordable housing at 3601 West Chicago
Avenue and 3613 through 3625 West Chicago Avenue in the
27th Ward for an amount up to 25 million. We're joined
today by Vanetta Jones.
The financial planning Alice from the Department of Housing
the morning. Good morning, and thank you chairwoman Dow and
members of the committee also. Happy birthday. Um for the
record, my name is Vanetta Jones from the Department of
Housing.
Before you today is the bond inducement ordinance for the
benefit of the a transaction. This ordinance establishes.
The city's intent for approval to issue bonds up to 25
million for the benefit of the a
Today's request is only for approval of up to 25 million in
tax exempt bonds, please keep in mind. The request is for
Bond inducement only and we will return back to council
later this year for full financing.
This is a joint venture with developers including
preservation of affordable housing Incorporated known as
poor along with bipac developer kmw communities LLC.
Their split will be indicated as HOA at 62.5% and kmw at
37.5. There are architect property management and attorneys
are listed as well.
We are still early in so there there has not been a
decision yet on the lenders or syndicators at this time.
The development will be new construction located at 3601
through 3625 West Chicago Avenue and the 27th Ward and the
Chicago Central Park TIF district in Humble Park Community.
This project was selected by the department of Planning and
Development via RFP and 2021.
The app will consist of 2 Lots 1 in which the developers
have sight control at this time and the other which is a
Redevelopment of the city-owned land which is a small lot
to the left ending in parcel number 0001.
Shown is the rendering for the site the development will
produce 52 all afordable mixed income rentals. This project
will have a community space that will be the new home for
Neighborhood Housing Services who will offer home ownership
programs and education.
Currently NHS owns the existing building in the privately
owned lot. They are donating the existing property to the
project and moving temporarily during the construction and
demolition. They will re uh, return promptly. Uh, I'm
sorry, they will permanently occupy the commercial space
upon completion.
There is also another uh, 1,200 square foot commercial Place
space available, but there has not been a letter of
interest at this time for that space.
This development will provide common area amenities that
will include free Wi-Fi in the common areas bike storage a
package room and laundry facility on each residential
floor.
On-site parking for residents will be in an enclosed Garage
in the and a loading area.
Building Security will be provided through control buzzer
entry system and uh cameras at entrances. The project is
being designed, uh to Enterprise green standards, which
will satisfy the city of Chicago sustainability
requirements Additionally, the building is all electric
with a solar ready roof energy star appliances and water
conserving Plumbing fixtures.
To the left is the existing layout with the blue being the
city-owned lot in order to complete the proposed project to
the right. They are going to have to cut off the current
Ali and make a new Alleyway as such.
They have also submitted the application to have this Ollie
vacation dedication through city council intro as well.
The project is for a 4 story 52 new construction and family
oriented development. All 52 units will be rented to
households earning 30 to 60% Ami.
there will be 29 parking spaces and 11 accessible units the
development will consist of 261 bedrooms 23 2 bedrooms and
3 bed 3 3-bedroom units.
The 3 1 bedroom units are set to be permanent Supportive
Housing units as indicated by the asterisk.
The proposed development cost for this project is
approximately 39.7 million in addition to tax exempt and
bonds the city will provide up to 1 8. 5.
4.2 million ndpd CRP funds with the 16.5 million generated
4% tax credit Equity from the bonds. We will also request
the grant of the sale of 1 vacant city on lot at 36.
13 through 3625 West Chicago Avenue 41
listed is the estimated timeline leading to come back to
city council again for full financing in september with
passage in October and estimated closing November of this
year.
We ask for your approval and support as indicated by our
aldermen. Um, this concludes my presentation as well today.
I will have Julie DeGraff from POA and Bill Williams from
kmw to answer any questions you may have. Thank you.
Thank you, Miss Jones Alderman Curtis. We will add you to
form.
Any questions from members of the committee?
All Vice chair Conway the if you go back to the uh sources
and uses slide, please.
Um do
the breakdown of loan to Grant of 17 million. I see there's
already the 4.2 million Grand but what's the the breakdown
on loan to grant their?
I'm sorry. Say that again. If you could you see I see it
says Tiff loan Grant of 17.4 million on the left side.
What's the breakdown of loan to Grant?
Loan to oh, yes, it would be a loan. It'll be a full loan
or okay, uh
what sort of interest rate on that if you know, uh, I'm not
exactly sure yet. Okay, but it's fully alone. Okay.
That that's all I have Madam chairwoman. Thank you. Thank
you. Thank you Alderman, Reilly.
Thank you. Madam. Chairman. I was just doing some quick
math.
and was discussing this with Alderman Ervin, but
this price is out to about 765000 per unit.
And I see 9 million plus in soft costs.
Why is it so expensive for us to be developing these units?
It's a it's a tremendous amount of money for a unit. Um,
and what do we do to press down soft costs? Yes, sir. Um,
so yes, it is in a tremendous amount. Um, I do believe this
has come up in quite a few of our previous, uh, multi
family housing. It is something that we are working on.
However at this time those costs have been increasing we
have not gotten to the bottom of why we are getting that
High. Um, I do believe that um, our Deputy Commissioner
Tamara Collins was in here quite a few uh a few months ago
and she is looking into that. Um, but at this time, this is
just something that has gone up since we've noticed since
Co we have GC costs that have gone up construction all the
labor all the materials behind everything. So we are
looking into this but it's not a question that anyone can
put a a finger on at this time.
Okay. Well, um, I I look forward to continuing that
conversation with you and I understand hard costs are what
they are. Um, but again, I'd like to Target soft costs
because it seems like that continues to press up the cost
for developing these units that are sorely needed. So, um,
I guess we'll follow up off the Record. But thank you madam
chair.
Thank you. I didn't know if uh 1 of the developers Mr.
Williams. Would you like to take a stab at that question as
well from your experience?
Okay. Thank you.
Um, we too would love for costs to go down. Um, can you
give your name for the Cort report? I'm sorry. My name is
Julie de Graaff. I'm a vice president of community
redevelopment with preservation of affordable housing or
POA.
um soft costs are made up of several layers, um 1 of the
larger costs in that line item today is construction period
interest. So we're here today for tax exempt bonds. We have
to finance 50% of our development with those bonds to
unlock tax credit Equity under the low-income housing tax
credit program right now interest rates on those bonds are
between 7 and 8% which is obviously a lot higher than what
we saw several years ago. So that cost a loan is 1.5
million and projective construction period interest and
there's really no way to minimize that unless the market
comes down.
Um, we've got all of our design fees in there. Um, so
architecture engineering um environmental which is not
insignificant on this site. Um, we also have um, all of the
bond costs. So the cost to issue those bonds are part of
um, our soft costs. So unfortunately, there are some
unavoidable costs in there. I think everyone's aware our
actual developer fee is capped by the city of Chicago so
that can't exceed 6% of the total budget.
Thank you very much.
Any other questions on this item Alderman Ervin?
moved to pass all those in favor motion made by Alderman
urban urban recommending do pass all those in favor signify
by saying I I opposed.
And the opinion of the chair the eyes have it and the
motion carries will report this stew pass ordinance that
the next city council meeting Miss Jones. Thank you very
much.
item number 3 is an ordinance concerning the First
Amendment to the intergovernmental agreement with the
Chicago Park District for the provision of tax increment
financing funds for the improvements at Park 598 located at
1514 North Larrabee Street in the 27th Ward and the amount
of 1.25 million. Uh, we're joined today by Beth O'Reilly.
from the Department
No, you're not from the Department anymore from the park
district. Uh, good morning. Good morning.
Uh, good morning and happy birthday chairman, Dal and
members of the finance committee for the record. My name is
Beth O'Reilly and I am the deputy director.
Uh of the budget office at the park district. I am here
today to request your approval to amend and
intergovernmental agreement that would provide the Chicago
Park District with an additional 1.25 million in Tiff
assistance to develop Park 598.
The project is located within located at 1414 Larrabee
can't see if I can do this.
Oh, yeah, um.
It's at 1414 North Larrabee in the 27th Ward. It is also
located within the near North TIF district.
Park um
598 is located in the near North Community. It's about a 4
acre Park that will be constructed on the site of the
former near North High School outdoor recreation area.
Uh as part of the Cabrini Green plan for transformation the
Chicago Housing Authority transferred the property in 2019
with the expectation that the park to be developed with
computer Community involvement.
The original project budget in the amount of 3,150 dollars
was approved by City Council on April 18th, 2019 while
working through the site remediation and permit process. It
was discovered that 3 on vacated streets were underground
and the utilities, uh, required considerable coordination,
uh with all the entities to properly vacate.
so
with the design now complete and the underground issues,
uh, and necessary permits nearly secured. We have the
current construction estimate to deliver. The project
amenities will include a new site entry Plaza walking paths
a dog friendly area.
Picnic tables and benches outdoor Fitness station
playground fencing open lawn and landscaping.
Unfortunately as you've just heard all the prices have been
going up the 2024 cost for this plan is now 4.4 million.
The design has not changed. This is the design that was
established at the start of this process.
And the park district is now seeking the approval to
increase the Tif budget to complete the park as designed.
right now
that's what it looks like. It's just what was left from the
high school.
And these are some of the elements that will be included
the outdoor Fitness and outdoor, uh playground large areas
8000 square feet a piece.
Uh sample of a DFA that will be installed there and here is
the breakdown of the budget.
so it is an increase, but I again must
Reiterate this was the design that was set to go. Um, we've
been hit with numerous delays. Um,
so now we're ready to go in 2014 for a project that we
fully intended to start in 2019 and 2020.
Thank you Beth Alderman Hopkins.
Yeah, thank you. Madam. Chair is uh our vice mayor
mentioned. I'm working closely with him on this because uh,
there's a small sliver just on the other side of the elra
that is actually in the second ward, which we'd like to
articulate into this park. Uh, so just trying to look at
the final design. Um, does that contemplate that eventual
extension where the plaza could connect to the corner of
North and Larry right here? Let me go back. I think
somebody else is driving this
Um, from what I understand if I have this site orientation,
right?
It's
the connection is underneath the train tracks. Yeah.
So we're going to go out and build what we've designed
you're that future phase will absolutely not impact this
what will have to happen is maybe some Landscaping changes
maybe some of the existing trees will need to be removed.
The fence will go up and the transition for Ada
accessibility will be
Managed by the construction of the other we're ready to
marry into the projects. We just need to remove a piece of
our fence sure. I mean, it's not my intent to delay the
project at all. Just you know, I I think it's it's been
contemplated always. Okay, so you're aware that this is
going to happen. Oh, yeah, so it will happen and uh, I
believe that c dot will be the construction manager on that
Park that
We you you don't even need an access permit from us. You're
good to go. As soon as you work out the utility
arrangements with the CTA. Okay, and that is ongoing. Yes.
So my suggestion would be you know don't plant any trees
that you know, you're going to have to remove no no, we're
not planting any of their existing. Oh the existing tree.
Okay. All right, very good. No, we are aware. We're not
adding any element up there that would then have to be
taken out and removed. Okay. So then at the appropriate
time, uh on behalf of uh, my colleague Alderman Bernett, I
would make the motion for approval on this Madam chair.
Thank you. Thank you. I don't see any other questions from
members of the committee. So Alderman Hopkins is Rec.
recommending a motion of due pass on this all those in favor
signify by saying I
opposed in the opinion of the chair the eyes have it and
the motion carries and will report this out at the next
city council meeting. Thank you Beth. Have a great day and
rest of the week.
Item item number 4 is an ordinance concerning an amendment
to the Redevelopment agreement with NP Avenue O LLC for the
improvements at Commerce Park and the 10th Ward we are
joined.
On this item by Tim Jeffries managing Deputy Commissioner
from the Department of planning and development.
Morning, Tim morning chair.
Uh, I guess the good morning chair and members of the
finance committee for the record. My name is Tim Jeffries
managing Deputy Commissioner in the department of Planning
and Development. I'm here today to request the amendment of
a previously approved, uh Redevelopment agreement between
the city and NP Avenue O LLC for the purpose of developing
Commerce Park a 2.26 million square foot Industrial
Development.
Uh, the purpose of this amendment is relatively minor and
requests to make 2 changes. The first is to revise the
deadline for the developer to complete the construction of
Burley Avenue through the property and the sub subsequently
convey it to the city, um from December 31st of 2024 to
December 31st of 2026. Uh, the second change would clarify
a language in the current RDA.
Which allows the developer, uh to sell a portion of the
property prior to construction this amendment affirms an
existing provision that such an action is not an event of
default. But but would remove the property from the RDA on
a move forward basis.
Uh Commerce Park is located in the 116th and Avenue of TIF
district in the heishi.
Uh the subject property which is referred to as Commerce
Park Chicago is highlighted in red and occupies nearly 2008
Acres of industrial property adjacent to the Cal River and
immediately north of the Ford manufacturing campus.
Uh, the site was originally was formerly the location of
the Republic Steel Mill which continually operated in the
area from 1910 until the closure of the facility in 2001.
Uh, the buildings were subsequently demolished and the
property remained vacant until the Redevelopment of the
site by North Point began in 2020.
Uh, as I mentioned the Commerce Park, uh includes the
project includes the Redevelopment of the property, uh into
approximately 2.26 million square feet of industrial space
across multiple phases. Uh, the project is already
substantially underway with 3 of the 6 plan 6 buildings
fully complete and occupied, uh in total the project has an
estimated total project cost of 250 million, uh, in
addition to the construction of these industrial buildings
the RDA also provided for up to 9.6 million dollars in
funds in order for the developer.
to construct 2 segments of city streets, uh, including
Burley Avenue from 117th to 124th and 122nd Street between
kurand delay and Avenue O.
Uh shown here is the location of these, uh proposed roads.
The construction of Burley Avenue is in particular a
critical priority for C Dot and part of a larger effort to
extend Burley Avenue from 106th to 126th as a truck route
currently heavy truck traffic utilizes the Avenue O, which
is adjacent to both a park and a school and is entirely
residential north of 114th Street this situation creates a
clear health and safety issue for the community and
addressing it through the construction of Burley Avenue has
been a key priority of both the community as well as C Dot
uh, although the development of the site has steadily
progressed over the past 4 years there were several delays
that were out of the control of the developer and that
require this minor Amendment to the existing RDA as
previously stated the RDA requires the developer to
complete the construction of the new streets no later than
December 31st of 2024 as a result of supply chain
disruptions Co 19 and a lengthy review process by the
Illinois Commerce Commission, uh, because of the rail
crossings along Burley Avenue, the developer experience
construction delays and is no longer able to meet that
deadline, uh, while these issues are being resolved. The
the deadline in the RDA would preclude further action by
the developer to complete this critical section of Burley
Avenue since no funds would be available for the work.
In order to address this dpd is requesting to amend the
completion date for the components the December 31st of
2026. The amendment will modify only the required
completion date and neither the scope of work for the
project nor the total amount of uh being provided by the
city is being amended.
uh, Additionally the amendment clarifies the provision in
the RDA that would allow the developer to sell 1 of the
build building what sell 1 of the remaining buildings prior
to the start of construction. So that happen incremental
property taxes generated by that building would no longer
be provided to the developer. Uh, and this provision is is
generally already allowed in the RDA. But this amendment
makes it uh clear that this is not an event of default, uh
that said, no other changes to the RDA are being proposed
with no reduction for the developers obligation to
construct, uh, any of the industrial buildings the amount
of City funds provided or any previously approved
obligations.
Thanks. Yeah, go ahead. Got more. Nope. Thank you for your
consideration. I'm joined by uh, uh, uh, Chris Christina
hubachek and Alice Butler from the Commerce Park
development team.
All right any questions for members of the committee?
Alderman Chico
Thank you chair. Um, as you know, the 10th wore heavy
industrial and we have a lot of uh truck traffic that we
have to deal with on a day in day out basis. A lot of the
complaints come my way from from the residents. So the
creation of Burley Avenue will alleviate that from
residential areas, um, which is important to my ward in the
constituents that I serve.
Thank you, Alderman Moore.
so the
This is a business. It's a business part. First of all,
congratulations, but this is a business park. I wasn't
Clear on what it is.
It's uh, 2.26 million square feet of industrial warehouse
space spread out over 6 buildings. So yes, it's basically
warehouse space. It can be it's flexible though, depending
on the user. I'm sorry, it can be but it's flexible
depending on the user and What's the total cost again? Uh,
it's an estimated 250 million dollars, but this project was
originally approved in April of 2019. So 3 guess what
originally what approved in April of 2019. So 3 of the 6
buildings are now complete. Okay and of 250 how much you
say was City about 50 million 499.55 million. All right, so
nice, um,
nice private investment in this
thing like $200 million
Correct. Yeah, 250 million now. No. No, do you say it's
total of 250 I have investment is is significant, right?
That's very significant. That's good stuff. Thank you. All
right. Appreciate it. Congratulations Autumn Chico.
Did the uh develop the North Point have something they
wanted to add to this presentation.
um
You're going to have to I'm going to have to apologize. I
had to write notes down because pregnancy brains. So just
in case I forget um
Good, good afternoon, Madam chair and the committee. My
name is Christina hubis. I am a regional vice president at
Northpoint development.
I've actually been involved in Commerce Park Chicago since
before North Point acquired the site.
Um, we appreciate the opportunity to come before the
committee to discuss this amendment.
um
When Northpoint came before this body in 2019 where you
received unanimous approval on the original Redevelopment
agreement?
Northpoint made a commitment to the city and to the 10th
Ward to bring jobs back to the community the community in
which was left with a blighted property in loss of jobs and
wages after the steel mill shuttered its doors we have kept
the promises that we've made to the 10th Ward and to the
committee in 2019
As mentioned North Point is um anticipated to invest 250
million to date. We have invested millions in the
development. We've created a hundred. I'm sorry, 1,100
temporary and permanent jobs.
At Commerce Park Chicago North Point exceeded its 26% MBE
and 6% wbe commitment on every single phase of building an
infrastructure Construction.
And with that, I just want to thank you for the opportunity
to speak before you today.
Thank you.
Is there a motion recommending approval of item number? Oh,
I'm sorry Alderman, Reilly Alderman Reilly, uh recommends
do pass all those in favor signify by saying I
opposed
in the opinion of the chair the eyes have it and the motion
carries with the exception that I will be voting. No on
this item. The due pass recommendation of the ordinance
will be reported out at the next city council meeting.
Thank you Tim.
item number 5 um from the Department of planning and
development is an ordinance concerning the execution of a
tax increment financing Tif Redevelopment agreement with
North Lawndale Catalyst initiative Inc and North Lawndale
initiative support Inc for the property located at 4100
West Filmore Street in the 24th Ward.
Are you reporting on this or okay, because it had uh
antinet Maxwell.
Um, Tim Jeffries will give us a report on this.
Uh, thank you and good morning chair dowel and members of
the finance committee. Once again my for the record, my
name is Tim Jeffries managing Deputy Commissioner at the
department of Planning and Development, uh, this item
requests your Authority for the city to enter into a
Redevelopment agreement with North Lawndale Catalyst
initiative Inc and North Lawndale initiative support LLC
that will authorize the use of up to 10 million dollars in
Tif funds for the rehabilitation of an approximately 168
thousand square foot industrial building into the Fillmore
Center, uh, a community-based jobs Hub anchored by an
industrial laundry facility.
Uh, the Fillmore Center is located at 4100 West Filmore and
is within the north Longdale community area the 24th award
and the Roosevelt Cicero, uh TIF district.
Uh, the subject property is highlighted in red and it sits
on 3.5 Acres at the Northeast, uh, corner of Fillmore, uh
Street and Karlov Avenue the buildings within the Roosevelt
Cicero industrial Corridor a prominent Westside job center
and is in close proximity to another a number of other
recent and uh Industrial Development projects, including
the relocation of Poria packing and the Redevelopment of
the Roosevelt Costner site.
Uh shown here is the current exterior condition of the
property. Uh, the the the 5 story brick building was
originally constructed in 1913 as the home of the kalt
baking powder company, uh, but has been predominantly
vacant for the past, uh, 10 years.
Uh, the current proposal would fully rehabilitate this
property as the Fillmore Center an industrial building that
would support the areas and importance as a jobs hub for
the west side and the city as a whole.
Uh, the project would be anchored by Fillmore linen service
a 45,000 square foot commercial laundry facility with a
focus on the medical sector, uh currently
There are no commercial laundry facilities specifically
targeting the medical sector within the city of Chicago as
a result. The 62 million pounds of laundry created by area
hospitals rely on businesses in Indiana for these Services
these facilities. However tend to be significant job
creators that provide High wages, uh, Phil Philmore Linens
would address this dirt with a development of a facility on
the west side.
Uh, when operational Fillmore Linens is expected to have
more than 175 employees at least half of which are uh with
the goal of being North Lawndale residents and a started
with the starting pay of nearly 19 an hour plus benefits.
Uh, the remaining space is anticipated to be leased out to
smaller minority owned businesses, including a coffee
roaster the wholesale flower Distribution Company a
packaging facility and a construction company, uh in total.
The facility is expected to house a total of 300 full-time
equivalent jobs.
Uh, the developer for the project is Renu Lawndale
Acquisitions a single purpose entity established by the
steen's foundation for the project. Uh, the steen's
foundation was originally created in 19887 and its
organizational Mission focus on the focuses on the revital
revitalization of the north Lawndale neighborhood, uh, the
steen's foundation owns the building and will co-own and
operate Fillmore Linens with 4G and management, uh, a
commercial laundry operator with significant experience in
the sector.
uh steen's Foundation long-term goal for the Fillmore
Center, uh is for it to act as a community investment
vehicle and that the ownership of the property will
eventually transition to the residents of North Lawndale
itself through a community benefits Trust.
The building would then be managed in order to support
direct benefits to the neighborhood residents.
Uh, the total estimated cost of construction for the
Fillmore Center is an estimated, uh, 39.5 million.
Uh, if approved this agreement with authorized dpd to
provide up to 10 million dollars in Tif or 25% of the total
budget.
Uh, in addition to City funds the project will leverage 12
million dollar 12th dollars, uh, 10 million dollars in
equity and 7.5 million in New Market tax credits, uh
steen's itself is making a significant investment in the
property by contributing both the equity funding as well as
guaranteeing and bridging any philanthropic donations for
the project.
Uh, if approved the 3 development agreement will reimburse
the developer for up to 10 million dollars in Tiff eligible
costs with funds from are from area wide increment in the
Roosevelt Cicero TIF district.
The funds will be be provided as a reimbursement to the
developer with this with 7 million dollars provided at the
issuance of the certificate of completion and the remaining
3 million dollars provided a year later at the first
anniversary of the issuance of the certificate. Uh, the
second payment is however variable and depends on the
Project's final budget. Uh, specifically the developer is
currently pursuing both state and federal grants to support
the project.
But those have not yet been secured given the significant
impact and the benefits, uh that the project provides dpd
did not believe that the best approach was to delay
Construction in order to wait for those lengthy state and
federal processes to be resolved.
So dpd committed to covering the Gap as a whole but to the
extent that these other funds are secured at any point
prior to the first anniversary of the issuance of the
certificate of completion. Then this the amount of City
funds provided will be by reduced by up to 3 million
dollars depending on the amount of funding received.
Uh, this investment of City funds will be protected by
Provisions in the RDA that require the continual operations
of the film or linen business as well as maintaining a
minimum occupancy of no less than 75% of the leasable space
of the film or Center, uh as a whole for the 10-year term
of the agreement additionally Fillmore Linens is required
will be required to maintain no less than 100 the term of
the agreement.
uh, once complete this rendering shows, uh, the planned
exterior improvements to the Fillmore Center, uh, overall
the design is is remaining generally the same but uh, there
will all of the exterior elements will be stabilized
including masonry repairs and window replacements, uh, and
this will allow the building hopefully to remain in the
community as an asset for the next hundred years.
And this is what a conceptual photo of what the Fillmore
linen service could look like when when work is complete
and operations of commenced.
Uh, and so, uh overall dpd is highly supportive of the
proposed, uh development and believes that the use of Tif
is critical to ensure that the project moves forward. Uh,
when the project is complete. This will result in a number
of significant benefits not just the north Lawndale, but
the city as a whole, uh, specifically addressing the the
long-standing leakage of commercial laundry, uh to
facilities outside of Chicago, it will create a significant
number of well-paying jobs. Uh, and as well as
opportunities for local entrepreneurs and it will establish
a multiple Avenues to create community-based wealth
including through the community benefits trust and
employment employee ownership, uh, elements of the Fillmore
Linens, uh, uh post profit. Uh, and finally the project
will stabilize a industrial building that has been
significantly vacant for more than a decade.
Uh, thank you for your request to this item, and I also am
joined by Reginald Jones James cassen Holtz and Dave Doug
from the Fillmore Center development team to to answer any
questions.
Thank you, Tim. I just want to commend you on your uh
presentations are always so thorough and
Um, they're good. I appreciate it. Um Alderman Scott
Yes, I'm here.
This is a project.
with Pat forde Uh to make sure that Fillmore linen is
extending offers every day and as
extended 5
are in the greater west side of Chicago which includes
Austin East Garfield West Garfield Humble Park and um,
A total of Westside employment of 75% so far 70% of those
candidates are black candidates.
um African-Americans and the RDA indicates of who
will create a 100 jobs over the next 2 years with a plan to
create 175 jobs. And so I think that this is historic for
North Lendale. Uh
Giving the uh the job rate and so this is something that I
will actively support and make sure that I am in total
contact with sustains Foundation to make sure that the
community is working.
Thank you Alderman Scott Alderman Ervin.
Thank you madam. Chair, uh, I want to Echo the uh comments
of alderman Scott. I mean, this is a a real game changer. I
think for the west side of Chicago, uh, as we have the
Illinois medical District to see all of the all of that
laundry leave the community when we can put something in
place, uh, the stains foundation and the other um players
in the Northline deal Community. I think this is a great uh
use to not only Tif money but a a resource that will be
great for the community jobs that uh, she's talked about
and everything. So this is a win all around. I I think just
for the city to keep that business and Commerce in the city
and hopefully expand to downtown with the hotels and other
things that are going on instead of sending that that um
that work outside of our city. So I I definitely support
this and I think this is a good win for the city and the
win for the west side. Thank you.
Thank you Alderman Ervin, Alderman Moore.
Thank you chairman. This is a project. First of all I come
in. Um Alderman Scott on but it's a project that I heard
about for over several years and
I remember at 1 time I think the will group was involved
and I thought they were still involved. Can somebody tell
me?
What happened with that?
Are they still involved in this deal? Uh, the will group
was involved and they're they're not they're no longer
involved in this, uh, this proposal that was for a site
that eventually became the phase 2 of their existing
building. So they are moving forward with with an expansion
of anybody know what happened. I'm just curious I
I think it was a
business terms and and business agreements sort of stuff.
Nothing. Nothing remarkable except just
I couldn't work out work out terms.
Okay, I talked to somebody offline. I thought he was still
involved in it.
All right. Thank you. Thank you Alderman Moore Vice chair
Conway.
No, noting that the um.
The recipients of Commercial Business. What what was the
thinking behind making the Tif a grant of a loan?
um, well it's it's a very
Bill Moore Linens itself is going to be the tenant they are
the they're a for-profit business. Uh, but the owner and
the who the money will go to is ultimately the steen's
foundation who will operate the facility. So, um, we did a
gap analysis as we do for for all of our projects and at
168000 square feet. I think something like 125 of it is
actually the gross leasable square footage. So it's just a
big old inefficient building, uh, that needs a lot of
support and love uh, and that
that can the benefits provided to us, uh, including the
long-term this acting as a as a community, uh benefits
trust that will be inured to the to the residents all
stacked up for us to believe that the best option for. This
was a grant rather than a long still more L lens can be
paying rent. Sorry is Fillmore Linens going to be paying
rent to the property owner. They are. Okay. Thank you.
Thank you Alderman Conway. Uh Alderman Martin.
Thank you cheer, uh this seems like an absolutely wonderful
project. I'm uh this seems like a great project. I'm really
excited to be voting in support of it 1 quick question. I
saw um that there's a requirement um for 10 year period to
maintain, um, occupancy at least 75% uh, say something
happens unexpectedly and that dips below 75% for a lengthy
period of time what happens as a result of that.
Um, they they're they're given a a cure period so it's not
an immediate, you know default and then okay, you're on
you're out in the cold. So they have a 2 non cure periods
that are allowed that they can go and retent at the space
find new users. Um, and then if they do then no harm no
foul. It's allowed under the RDA is that if they don't then
the city can explore our remedies to to to recapture claw
back or lean the property for the value of the Tif funds
provided.
Okay, uh, that's it. No further questions. Thank you for
your work on this.
Thank you. Almond Scott. I just want to uh, also
congratulate you on uh, this initiative. I had a question.
Uh is Roscoe.
Company still out there in North Londale and are they
operational or are they gone?
They're still there.
Okay. Thank you very much. Um.
I I did we did look into this and they they are uh,
They're very focused on the uniform business, uh and and
selling and servicing. Uh, they do they do commercial
laundry, but it's uh, really part of their business as
selling uniforms uniforms. Okay. Um, can I get a motion to
approve this item number 5
stumbled by Alderman Reilly recommending due pass all those
in favor of the motion signify by saying I
opposed and the opinion of the chair the eyes have it and
this item will be reported out at the next city council
meeting. Thank you Tim.
I know you do.
Uh item number 6 is an ordinance concerning the 64th.
Amended administrative service agreement with Summer core
504 Inc to increase funding to select tax increment
financing Tif Redevelopment project areas and the amendment
of the small business Improvement program rules, um in
Wards 1 134678101112. 15161 1820
substitute ordinance which has been prepared and sent
electronically to everyone. Can I get a motion to accept
the substitute ordinance. So moved by Alderman Mosley all
those in favor signify by saying I I in the opinion of the
chair the eyes have it and the substitute ordinance is now
before the committee and will be explained by Norah Curry
and
Our former colleague here Mario Connor from the Department
of planning and development.
Thank you. Good morning, chairman dial and members of the
finance committee. I am Mario Connor Deputy Commissioner of
the Small Business Development Bureau at the department of
planning and development.
Today we are seeking your approval for the 64th amending
substitute ordinance to the administrative Services
agreement with Summer core 504 Inc.
This ordinance serves 2 purposes to replenish funds for the
small business Improvement fund program across 192 T Tif
districts and to update certain spiff program rules.
As you're aware the spiff program utilizes Tiff revenues to
offer grants to Commercial and Industrial businesses and
Property Owners within specific Tif districts facilitating
permanent improvements to their properties. This is a non-
selective non-competitive program. If applicants and
project Scopes meet the program requirements. They are
eligible for funding grants are provided as reimbursements.
This year marks the 25th anniversary of the spiff program
which has made significant contributions to small
businesses in Chicago since 1999 nearly, 2,000 projects
have been funded totaling over $126 million in investments
in response to evolving needs. We have enhanced the program
over the years notably 3 years ago. We raised the maximum
grade.
Grant amount to 150,000 for commercial projects and 250,000
for industrial projects reimbursing commercial projects up
to 90% of project costs.
Over the past 3 years, we've intensified communication
efforts with Ward offices providing monthly notifications
before spiff rollouts via phone and email. Additionally. We
furnished social media tool kits in English and Spanish to
assist in promoting the grants to local businesses
resulting in a notable surge in program application.
This Outreach is just 1 facet of the Small Business
Development bureau's collaboration with you and our joint
efforts to bolster the city's business corridors.
The proposed substitute ordinance before you seeks
authorization for 16.5 million in Tif funds to replenish
spiff programs in 19 T districts. This funding is crucial
to address weight listed applications allow potential
applicants to complete projects before Tiff expiration and
ensure equitable distribution of funds across Chicago.
Furthermore the ordinance introduces several rule changes
aimed at expanding program accessibility providing dpd with
greater flexibility to Aid applicants and safeguarding
program funds proper utilization.
As you may know the 2-year pilot initiated in 2021 by
Alderman Vasquez and Alderman Martin which allowed bars and
and taverns to qualify for spiff included in December 2023.
Both aldermen are now co-sponsoring an ordinance to
continue in 80 million spiff funding for taverns and bars
in the future.
While many neighborhood bars and taverns serve as model
businesses actively contributing to their communities and
enjoying strong support from local residents. We are
dedicated to ensuring they receive Equitable treatment and
Ben benefits similar to other businesses along the spiff
corridor.
However, we are equally committed to not supporting
businesses cited for practices that undermine the integrity
and vitality of our neighborhoods.
We believe we had the correct safeguards in place, but we
have heard some of your comp concerns and we will continue
to Monitor and make any necessary improvements to ensure
vibrant and safe neighborhoods.
In closing we respectfully respect your support for the
substitute ordinance before you I'm now going to turn it
over to Nora Curry the program director to go over the
proposal in more detail.
Thanks, Mary. Good morning chairman chairwoman Dell and
members of the committee. My name is Nora Curry program
director in the Small Business Development Bureau of dpd.
As you heard from Deputy Commissioner. Okay Conor The
Substitute ordinance before you would authorize a total of
16.5 million into funds to replace the program in 19 T
districts and update some spiff program rules.
The primary reasons dpd is requesting funding in these tips
is to address waiting lists give applicants ample time to
complete projects in expiring tips and ensure equitable
distribution and funding across the city.
All of this Biff requests are listed in the ordinance and
on the slide in front of you. We've been in contact with
all of you with tiffs that have spiff funding in this
request. And again, we are asking for this funding to fund
the program within each Tiff once we fund the spiff we ask
we put the we roll the money out for applications and take
applications then unless we have a waiting list.
um, in addition to the funding requests the ordinance
includes some program rule changes aimed at assisting more
Chicago businesses as well as ensuring. The funding is used
as intended as Deputy Commissioner. Okay, Conor mentioned
the ordinance would permit some taverns and bars to apply
for spiff grants in order to ensure the grants go to
contributing businesses. The incentive will only be
available to businesses that have been open and under the
same management for at least 2 years and that pass a review
by the Department of Business Affairs and consumer
protection.
regardless of business type all businesses all applicants go
under an initial evaluation and vetting
Um, first the spiff program administrator summer core
notifies the older person about every spiff application in
the project review stage.
Um, which gives you an opportunity to flag any concerns
that you might have about the application?
also summer core pre-screens all of our applications for
building violations specific does not pay to repair any
building violations. And if the property is actually in
building court, it's not eligible to receive the incentive
at all.
For Tavern applicants will the ordinance adds a
pre-screening that dpd provides business name address year
the license was issued all to bacp.
business Affairs and consumer protection
then bacp searches for pending license discipline cases and
and Community meetings for public nuisance issues. They do
this by searching the licensed database system, the
integrated Revenue information system or Iris and the
division of administrative hearings the DOA docket.
We confirm the business's licensed in the city.
We check the license type and you're the license was issued
to make sure it conforms with the program.
They look at any licensed discipline history and provide
that information back to us at dpd.
and they check that the license business is
whether the licensed businesses in their community meeting
process for any nuisance concerns.
Then bacp reports information back to dpd with their review
and assessment including any contact information for any
follow-up. We may need to do including the name and contact
information for any Department of Law attorney who may be
working on complaints.
Dpd will follow up to understand the severity of any issues
and a timeline for any for resolution is necessary.
After collecting all of this information dpd in
consultation with bacp determines whether each applicant is
designated as eligible for funding under the program.
um
in addition the ordinance clarifies some other permitted
uses gives dpd flexibility to work with some properties and
foreclosure when appropriate include some additional
compliance requirements such as making sure folks are up to
date on their compliant their debt payment plans updates or
affidavit to make sure we have occupied spaces and codify
some practices to help the program run more smoothly
including phase the phase payments that we are already
doing for to help businesses to get through their projects
quickly.
We want to make sure.
In addition that you all know how to access data about the
program.
It is available for our completed projects. You can go on
our spiff website chicago.gov B and find all the completed
projects on our open data portal. That'll be everything
from the 25 years of the history of the program for any
additional data for open applications new applications. You
can always contact me or Deputy Commissioner O Connor and
we're happy to provide any information that you might want.
Um, if the substitute ordinance is approved today dpd will
be getting funding waiting lists and rolling out Swifts
this summer. We respectfully request your approval of the
substitute ordinance and look forward to continuing to work
with you to support Chicago businesses and all of our
neighborhoods. Thank you.
Thank you, Nora and Mary.
any questions from the
Uh committee all the vice chair Conway followed by Alderman
Martin.
Yeah, yeah, thank you. Uh, Mary and Nora for the
presentation question about the the vacant property.
um
Part on page 8 it says, uh funding for vacant properties
will require 100% lease up of ground floor the portion of
the property subject to the fifth Grant with a qualified
tenant and then goes on from there if you could just
explain a little bit of what
just if you could explain how that fits into the overall
ordinance sure, that's an existing an existing role and
that refers to um, properties landlord applications and
when landlords um, use the
Incentive we want to make sure that they are leasing it up
that it's used by an active business. So the 100% refers to
the portion of the property that is paid for by this fifth
program.
And uh, we just want to make sure that that is actually
occupied. And then the 60% is the overall property. Okay.
That is my question. Thank you madam. Chairwoman. That's
all I have. Thank you Vice chair.
Alderman Martin
Thank you chair. I just wanted to briefly um commend Mary
and nor and your team for your work over the last several
years. I know Alderman Vasquez and I reached out some time
ago based on questions and concerns that we were getting
from some longtime Tavern, um a business owners in our neck
of the woods and really appreciated the initial flexibility
and putting together version 2.0 and continuing to work
with us and others on what's uh presented here today. So I
feel like from from our Awards standpoint. It's worked very
well the number of um, great full small business owners,
uh, who were really really helped during some challenges.
Times coming out of the worst of the pandemic. So thank you
both, uh as well as your team. Thank you chair. Thank you
Alderman Martin alderman waguespack.
woman, uh, I'll just reiterate what uh, Alderman Martin
said Mary and Nora have been doing an excellent job on this
program for
As long as I've been around and you've been in the
position, so I appreciate that and also the follow-up, um,
very detailed on.
The uh, potential problem bars and how to address that. Um,
you know, I know we've had problem bars utilize PPP and
Uh when they shouldn't have and um, so I know that they're
you know, some of them are always looking for a way to get
around this but I think the rules that you've put in place
are excellent and would um prevent any uh abuse of those
funds. So I just want to say thank you and um,
unless someone else has uh questions. Okay got 2 more
Alderman Moore.
Thank you Alderman W. Thank you chairman. Um just going
back, um to the briefing when when I asked about um these
items coming back at least for Council approval and then
there was a comment
made about
Something that legal has always done and but you all going
to check back with legal and get back to me.
On that and you all remember that conversation.
Well, I remember you asking if um these Pro these projects
could come to council and I just want to clarify that to
date.
Um any grants that are under 250,000 so that spiff know F
small Grant spiff anyone in the community development
grants. Um, do not require city council approval. However,
we come to you prior asking for the funding in advance.
Alderman if we we probably between the 3 programs have over
200 applications that would be moving forward and to be
blunt. It would be an administrative burden to come before
you for each project. What I I feel that what the practices
we have in place to date of like we notify the alderman of
the uh projects that are eligible to move forward and as
far as my time with dpd, I've never received a call from an
or Alderman regarding any spiff project.
What I would like to do, which I think is a better use of
our time and I would say this because I've spoken to
Alderman Martin Alderman Mosley and even yourself and
Alderman Seiko Lopez
I want to I I want to address be more. Um
intentional about addressing the concerns and getting the
right applicants to start applying and I think that's where
you want us to put our time and energy and and make sure
that although we have a practice in place. Now that is um
works for most communities several of them communities need
additional marketing strategy and that's where I'd like to
put our time but if we're but if we're going to be adding
on a couple extra months per program, um, if we go to
council and that could hurt a small business too who has
immediate need and it could hurt their bottom line or their
operations.
So that would be my recommendation that we continue with
the practice that we have in place and that as our Bureau.
We do a better job of customizing some of our Marketing in
your rewards. Uh, thank you all are doing a fine job. And I
think that is a good idea as well on the uh app Pioneer,
but in all cases you may get some to come through and I
just want to make sure that um at least some strong
discussions or whether it's written or whatever, um before
moving on with someone as you all show us these even if you
saying it's going to it'll be too much to come to council
but that the automatic recommendations, uh, be really taken
into consideration before moving and I'm not saying just
okay, we're going to take it into consideration. I'm just
saying, you know, really some real discussion and I just
moving forward with it if we have an issue with
It really, you know sitting down and saying okay Alderman,
uh, what's your issue? I don't care. I'll put it in
writing, you know, and I'm sure most aldermen will before
just just moving on and and just as heavily as you um take
um, doing it on the front end into consideration, but that
back end as well and having that automatic voice, um have
some as old of a misuse use the word teeth to it. That's
that's that's just going to be very important, you know, in
terms of you know, um, um, when we're giving out spiffs and
I and like I said, it's happened in the past and we were
able to use that voice it got taken away at some point. Uh,
Um, even with some mental health stuff, you know, all those
things are critical, you know, and I just want I just want
to make sure that I I express that in terms of how we build
and use the money to um, you know, uh, put towards
businesses in our communities.
I have heard you and
As a bureau, we will make a commitment to do a better job of
listening and um finding a an agreeable resolution. All
right. Thank you. Thank you chairman.
Thank you. Um Mary, can you you mentioned that you had a
wait list? I'm just curious to know how how many
Businesses do you have on that wait list, nor do you have
that data with you? I do it'll it'll just take me a second
to find it.
And then I saw all the all the men Mitchell followed by
Alderman Vasquez.
Uh Citywide we have 158 applications on our waiting lists.
Thank you very much Alderman, Mitchell.
Yeah, thank you Sharon. Um, I I didn't think I had
questions today but 2 2 things 1 I want to make a comment
to add to what um Alderman Morris stated in the in in the
briefings. I noticed that there is uh a necessary step that
bacp will be involved in I just want to put on the record.
The ladies have informed me that they did invite bacp, but
they weren't able to attend. So I don't know we have some
dialogue to see if that's actually necessary the future
time because I think bacp is very important to you know,
what goes on in our corridors and the second thing is
um, can you provide and I don't know if any other ottoman
wanted but I wanted the history of our spiffs because I
don't think I've used I in the past it is evolved over
time. But in the in the beginning, I don't think we used
all our spiff money. So I want to know how that gets
recycled back into our tips.
Um sure we could absolutely do that generally speaking with
spiff. If it's not if all the funds aren't used if we don't
get enough applications to use other funds. We'll roll it
back out to for application again, we'll wait for another
year talk to the delegate agencies and um Market it again
the following year. So we'll keep rolling if it looks like
we're not getting any applications.
Or not having successful applications. Then we have
liquidized the Smith put the money back into the tip. We've
done that a few times. Okay. I'm trying to I had some free
approval. Of course. I had some situations where the tips
were at and I'm not that tips the spiff would actually
approved but because of the process they were not able to
use it and then eventually it just fell off so I don't so
if it was initially $500,000 applied to a tiff 500 was
applied but only half got used what happened to that other
half, uh 2050 thousand.
Um, so we either then um recycled it and rolled it out again
or yeah, we would have recycled it and used it again. So I
won't deal with that here, but I just want to see how it
reflects in the history of the activity on our on our tip
sprays. We will get your report. Okay. Thank you. Thank
you. Thank you Alderman Mosley.
Uh, and thank you Deputy Commissioner or like this has been
a great just asset for me. Um, I remember coming in and my
SBS had no applications or 1 application working with you
both. We've been able to this past 1 to see at least 5 and
then I got 2 1 open now and another 1 opening. Um, so it's
really helpful for my office to be aware of this to let the
businesses in my community know what's available to them.
Um, this is something that they've been paying into and
they just were simply not aware and so the the facade the
the roofing the windows all those great things that this
program provides, uh has just been um, even to the business
owners of breath of fresh air. Um, and I'm thankful for
your your new kind of this new department that has come
about this focus on small businesses when I talk about
making sure that my residents are able to contribute to our
own local economy as opposed to constantly going out and
Stripping other economies you all have been a great partner
in that and I look forward to continuing that great work
together.
Thank you Alderman. Thank you. Alderman Mosley.
close, uh Alderman Vasquez
Thank you madam, chair and out of respect your colleagues.
I keep it nice and brief. Um, I really want to thank uh,
Nora and alderwoman o'conor, uh for all of your work for
the city and the work specifically done here. Um, I think
during Co we definitely kept hearing from businesses as a
hard how hard it was to survive out here. So to be able to
provide, uh, the kind of um, investment and infrastructure
necessary for these businesses to continue I think is
important. Uh, I want to thank chairwoman Mandell for uh,
the amendment proposal to extend and make sure that the
businesses were in operation for 2 years. We want to know
that those businesses are good Community Partners that they
are doing well and so I appreciate that change. I think it
adds a level of responsibility. Uh, that is very much
welcome. Uh, and I think we think about
that
What would happen if they didn't get that support if you
had the empty taverns in storefronts in the neighborhoods,
they also would not be in addition to the community. So
making sure that the good players are the ones being
supported adds to our business district adds to our
economic ecosystem and ultimately makes us a better City.
So, um, I thank you for the work. Uh, I am in support as
for our colleagues to do the same, uh, and would move due
pass motion made by Alderman Vasquez recommending do pass.
All those in favor signify by saying I opposed and the
opinion of the chair the eyes have it and this item will be
reported out at our next city council meeting. Thank you
Nora. Thank you Mary. Thank you. Thank you everyone moving
on to item number 7, which is the proposed order
authorizing the payment of various small claims against the
city of Chicago or direct introduction that list of
payments was sent electronically to everyone if there are
no objections. These will be placed in the Omnibus.
and item number 8 a proposed order denying the payment of
various small claims against the city of Chicago also a
direct introduction. This list of payments was sent out to
you guys electronically as well. And if there are no
objections, they will be placed on the Omnibus.
Um item number 9 is the from the Department of Law, which
was the communication transmitting reports of cases in
which verdicts judgements or settlements were entered into
for the month of April 2024. These reports were also sent
out electronically and if there are no objections, these
reports will be placed on file with the city clerk.
okay, we're going to take a 3 minute recess to give our
court reporter a chance to work up her fingers or rest her
fingers and then we'll get to item number 10 which are our
proposed settlements.
3 minutes
The committee on finance is called back to order. I want to
acknowledge. We've been joined by Alderman Ramirez Rosa who
will be counted towards forum.
And uh Alderman seicho Lopez is requesting now to join
virtually under the proposed rule provisions of rule 59.
Can I get a motion to allow him?
Uh, so moved by Alderman waguespack, um, all those in favor
signify by saying I post hello all in the opinion of the
chair of the eyes have and Alderman essay Lopez.
Okay.
Item number 10 is from the Department of Law. We have 4
proposed orders authorizing The Corporation Council to
enter into and execute settlement orders, um in the
following cases. The first 1 is 10A Jose Jose eufrazio
versus Tyron Gamble and the City of Chicago case number
2020 L.
012975 in the amount of 190,000. We will have that
presentation by Deputy Corporation Council Margaret.
Mendenhal Casey.
Thank you chair and good afternoon to everyone.
Chicago Police Department Officer, Tyrone gamble entered an
intersection on a red light. He was not involved in a
Pursuit and hit another car injuring an innocent party. The
plaintiff has lasting back pain as a result of that
accident. The Department of Law recommends settlement in
the amount of 195000.
On August 10th of 2020 the plaintiff was driving at Chicago
and Central Park when the plaintiff's car was hit by a CPD
card driven by Officer Gamble.
At the time of the accident officer gamble had the red
light and plaintiffs have had the green light.
Officer gamble provided the explanation that he was
responding to a call for an assist on a burglary.
At the time of the accident officer gamble did not have his
lights or sirens on.
The plaintiff claims officer gamble was negligent and
willful and Wanton in violating the red light and striking
his car.
The plaintiff suffered from a bulging disc and tear to his
spine causing lasting back pain.
The plaintiff has between 43000 and 69000 in current
medical bills.
An expert opinions that the plaintiff will need a spinal
cord stimulator in the future totaling 470 thousand
dollars. The plaintiff has 6,000 in lost wages. Therefore a
plaintiff's total economic damages are between 519 and
545000.
If this matter were to proceed to trial a jury could award
damages for past and future pain and suffering past and
future loss of normal life past and future emotional
distress in addition to the plaintiff's claim medical bills
and lost wages. The Department of Law, therefore recommends
settlement in the amount of 190,000 on this matter.
Thank you, Miss. Casey any questions from members of the
committee?
hearing no questions alderman
Vice chair Conway recommends to pass all those in favor
signify by saying I
opposed in the opinion of the chair the eyes have it and
this item will be reported out at the next city council
meeting.
item number 10 B to wanna Washington versus the city of
Chicago case number 2020 L 0006819 in the amount of 525000
Miss Casey. Thank you chair officer. Christopher Holmes was
at 1111 in Michigan to help quell civil disturbances in
looting. He got out of his squad car and forgot to place
the
vehicle and park the car rolled over the plaintiff astarte
Washington who was lying in the street as a result of the
accident aarte who was 15 years old at the time of the
accident suffers from PTSD. The Department of Law
recommends settlement in the amount of 525,000.
On May 31st of 2020 officer Christopher Holmes was 1 of the
many police officers dispatched to the area of 111 in
Michigan to help quell civil disturbances and looting.
Officer homes got out of his squad car believing it was in
park. In fact, the car was in Reverse with the keys in the
ignition.
Officer homes exited the car and noticed it rolling
backwards toward plaintiffs of astarte who was lying in the
street.
Officer Holmes unsuccessfully attempted to stop the car.
However, the car's front and rear driver side tires rolled
over a startee legs and torso.
A starte says that she and her brother were walking home
from their grandmother's house because a bus was delayed.
On the route home. They observed a family member in
possession of a garbage can filled with clothes.
a starte assisted with carrying the garbage can
a stare her family member and a civilian bystander say that
a stare lied in the street after being commanded their by
an unidentified Chicago Police Department Officer while
lying in the street aarte was run over by Officer Holmes
car.
The plaintiff alleges that the city of Chicago through its
police officers were willful and Wanton in their
interaction with the stare.
Aarte was transported to the hospital from the scene where
she was kept overnight.
She suffered markings to her legs and was diagnosed with
PTSD as a result of the accident. Her current medical bills
are $20,000. There's medical testimony in the record that a
stare will need therapy for the rest of her life, totaling
a potential 1.25 million in future therapy needs.
If this matter were to proceed to trial a jury could award
a starte damages for past and future pain and suffering
passing future loss of normal life passing future emotional
distress and past and future medical bills. Therefore the
Department of Law recommends settlement in the amount of
5250 dollars in this matter.
Thank you, Miss. Casey. Any questions on Alderman's pisado?
Chair, so the officer was responding to a scene where
there's a bunch of looting going on. I'm assuming sounds
like
the officer was responding to a scene where there was civil
unrest that was occurring including um, looting.
Okay, looting burning bashing whatever it was so civil
unrest and she just happened to have a garbage can filled
with.
Stuff that no proof that was paid for or anything like
that. No proof that it was stolen. But no proof that it was
paid for either, correct.
Yes Alderman, it's accurate that a starte as well as other
family members were in possession of a trash can that had
brand new clothes within the trash can and that then a
starte was um ordered to the ground by uh, Chicago police
officers in the street and that subsequently a Chicago
police squad car rolled over a star to his legs as well as
her torso, um after the plaintiff will allege that she was
commanded to the street by police officers.
Okay, so I missed that part so they were being detained in
the officer pulled up and he forgot to put it in park and
then the car ended up running her over.
Yes, so stare was initially ordered to the ground or um,
and as such was detained, um after she was ordered to the
ground the car driven by Officer Holmes. He got out of the
car, um unrelated to a starte um, and the vehicle started
to reverse and rolled over start's leg and her torso.
was was anybody arrested at the scene do we know I know a
lot of these chaotic scenes a lot of people just got
rushed to the district and they rushed back to the scene.
Do we do we have any information on that? The information
that I have is that there are about 3 dozen officers in the
area and at least a hundred people in the 2 about an hour
before that accident neither a starte or her relatives were
arrested, um stemming from this incident.
so they weren't or nobody was arrested or
Sure, so I aarte was not arrested. Her family members were
not arrested as to all of the other individuals that were
on the scene. I'm uncertain if they were arrested there
were about at least a hundred people there. Um and 3 dozen
officers in the vicinity but a starte was not arrested
despite being commanded To The Ground by police is is it is
it possible possible that she was not arrested because the
car ran her over and and she was a minor and she got taken
to the hospital.
That's certainly a possibility Alderman right? Thank you
know further questions. Thank you madam chair.
Thank you Alderman spaz.
Any other questions for members of the committee?
Uh, can I get a motion to move due pass on this item?
So moved by Alderman Vasquez recommending due pass all
those in favor signify by saying I I opposed.
In the opinion of the chair the eyes have it and the due
pass recommendation will report it out at the next city
council meeting.
Um 10c is Lamar Johnson versus the city of Chicago versus
Don Franklin case number 2020 L 4672 in the amount of 940
dollars Miss Casey. Thank you chair. This case involves a
police pursuit in which an innocent civilians car was
struck by a car that was fleeing from officer Lucas
goddess.
the plaintiff Lamar Johnson on the innocent third party
civilian suffered broken bones had a trait place in his
neck and was hospitalized for over a month subsequent to
the accident. The Department of Law recommends settlement
in the amount of 940 thousand dollars in this matter.
On June 10th of 2019 officer goddess pull behind a Cadillac
for a traffic stop after observing that the car had a
broken tail light the Cadillac briefly pulled over and then
fled the traffic stop the Cadillac fled for less than a
minute for a distance of about a mile at a top speed of 50
miles per hour violating 3 separate stop signs finally at
the intersection of 76 in South Chicago the Cadillac struck
a car occupied by the plaintiff and innocent civilian.
The plaintiff alleges that officer doutis willfully and
wanting pursued the Cadillac in violation of the general
orders.
The plaintiff was transported to the hospital from the
scene of the accident and was hospitalized for over a
month. He was diagnosed with multiple rib fractures acute
respiratory failure and had a tracheotomy. His medical
bills are between 450 and 640 thousand dollars.
At trial a jury could award the plans of Damages for past
and future pain and suffering has been future loss of
normal life past and future emotional distress
disfigurement and medical bills in the specific Journal
order. Um,
uh violations that are alleged in this matter is that the
officer initiated and continued a Pursuit for a minor
traffic offense specifically the broken tail light. Um,
another allegation is that the officer continued to pursue
after losing sight of the vehicle in violation of the
general orders as well as that officer pursued in uh,
excess speeds as such the Department of Law recommends
settlement in the amount of 940 dollars in this matter.
Thank you, Miss. Casey Alderman spaz. Thank you. Again,
Madam chair soy he he did violate or he allegedly violated
the officer in this Chase. And and then if he did if he did
violate did he get any time did he get a suspension for
this? Sure. So the allegations are the allegations, excuse
me, and what the plaintiff will claim is that the officer
violated the general orders. The general orders do state
that you are not to pursue for um, a non-hazardous traffic
offense in the plaintiffs of War argue that um, a busted
tail light is a non-hazardous traffic offense, um in terms
of any discipline that's uh stems from this matter. The
officer in question was issued a reprimand by the traffic
review board. Um, the command chain did find that um, the
officer had violated the general orders in conducting this
Pursuit.
Did he get a verbal a written a time off?
Give me 1 second, please. Um.
Alderman, thank you.
He was issued a reprimand and driving school was
recommended.
Thank you. Thank you.
Thank you Alderman spaz alderman waguespack.
chairwoman, what was the um amount paid for by or being um
requested of the
other defendant the 1 who fled the scene
um
What is the plaintiff going after that person for?
The plaintiff is going after is not going after that person
for compensation. Um, if we were to proceed to trial the
um, city of Chicago would argue that the sole
Cause of the accident was a fleeing offender and not the
city. That's the argument we would make however for us to
be completely off the hook for the medical bills. The jury
would have to find that the city has 0% responsibility
here, um, which is unlikely if we are found even 1%
responsible. We will be on the hook for all of the medical
bills.
Within this matter total between 450,000 and 640,000.
The basically the person who committed the actual original
offense walks on this whole thing.
Sure in terms. So there's because we're not we're not in
the settlement you're not asking for them to be.
Any accept any portion of responsibility here, so this is a
case where there um, it's both a criminal matter as well as
a civil matter stemming from the accident in terms of the
criminal matter, the fleeing offender, Mr. Franklin was um
convicted of a felony resulting from this incident in which
he was sentenced to 3 years in 4 months.
Okay.
It seems um, so he he's spends 3 years and 4 months in
jail. Well, we don't know if he did or not. But um because
it was 2019.
um and probably irrelevant there but
So if we go to trial and we have even 1% responsibility,
which you'd be explained before we're footing the whole
bill yet in a settlement. We are not even though he has
Been recommended uh under the felony for jail. We're not
going.
We're only going after him if we go to trial.
So essentially you're saying we're not going after this
person for anything.
Under the settlement to reimburse the city or to offset
some of the costs.
Why not?
So in this case actually not just why not but do you have
the opportunity to?
Hold him by partially financially accountable in the
settlement.
Or are we just saying? No, we're not we don't have that
ability to do that. Sure. So in terms of the settlement the
settlement would be illegal agreement between the city of
Chicago and its agents and the plaintiff, um, the city of
Chicago cannot bring the fleeing offender into the
settlement without his um cooperation in terms of the
utility of potentially pursuing, um collections against the
the fleeing offender in this case. Um, this individual was
incarcerated from this incident. Um, he was previously as I
um mentioned that he was previously incarcerated in 2017.
It is unlikely that the city would be able to collect
against um, the fleeing offender and if we were to proceed
to trial even if we are found only 1% responsible, we are
on the hook for
All of the medical bills despite somebody else being found
99% responsible. So instead of um, taking the risk making a
Gamble and going to trial we are recommending this
settlement in light of the fact that if we go to trial and
we're found even 1% responsible. We have to pay all the
medical bills and we most likely are dealing with
individual who's as we call judgment proof does not have
the means in order to to pay for the settlement or pay for
the lawsuit.
Um, I remember you said that this law was instituted in
2021. Have you talked to our state legislators, uh on this
policy issue to see if other jurisdictions are being
um held to the same account or going through the same. Um,
issues that we are with these types of cases
sure, so also I wanted to add um in addition to the fact
that um, if we're found 1% responsible, we will have to pay
all the medical bills as I mentioned. This matter did go
through the command channel for review and 2 Deputy Chiefs
as well. As a commander found that there was a general
order violation in terms of any um legislative reform. I
I've been authorized by The Corporation Council herself to
say that we welcome, um, any efforts, um from the
legislature and the City of Chicago For assistance with um,
slobbing regarding these laws that impact our litigation in
particular.
We are more than we're more than open to that but me
personally, um as as a lawyer for the city, I have not
lobbied, um to try to change the law. Well, I know you
wouldn't personally I mean that obviously makes sense. But
um Corporation Council has not done anything to
talk to the state legislators to say this significantly
impacts us in a way that you know is detrimental to our
bottom line our fiduciary duty to
Um, I guess what I'm asking is so you have she hasn't gone
out and said what other jurisdictions are experiencing the
same issue.
Sure, so I'm not privy to all the conversations that the
Corporation Council has with other elected officials. We
certainly are let me rephrase that. Um
She's certainly as she told me would be welcome to
assistance from the legislature in terms of interacting
with people downstate about the laws that impact litigation
on behalf of the city of Chicago. So if that's something
that you're open to please don't hesitate to reach out to
the Corporation Council. Thank you madam chair.
Thank you. Alderman.
Any other questions on this matter?
Can I get a motion moving due pass recommending due pass?
So moved by Alderman mitts all those in favor of the motion
signify by saying I I opposed.
And the opinion of the chair the eyes have it and the due
pass recommendation will be reported out at the next city
council meeting.
our last uh settlement 10d is Iris Chavez Chavez, excuse me
me, as independent administrator of this estate of Irene
Chavez deceased versus City of Chicago at all case number
22 c935 in the amount of 1.75 million.
We are joined today for this 1 with Deputy Corporation
Council Carolyn fronek.
Good afternoon, Clint if I wish Chavez filed her lawsuit in
federal court against 11 Chicago police officers alleging.
The defendant's actions led to her sister Irene Chavez a
suicide and custody and December 18th of 2021 the defendant
officers arrested Irene Chavez after 2 security guards
called 911 and complained she battered them on December
17th of 2021 during her arrest. Miss shaved says that she
was a veteran who had been diagnosed with post-traumatic
stress disorder approximately 47 minutes after the officers
placed Miss Chavez in a holding cell. She removed her
shirt.
Prior to the Handcuff ring and use it as a ligature to
strangle herself on the Handcuff ring. The city is
recommending a settlement of 1,750 dollars.
Plaintiff alleges that the city of Chicago failed to
accommodate Irene Chavez's disability during her arrest and
while in custody in violations of the Americans with
Disabilities Act and had a custom practice and policy of
failing to establish adequate policies and procedures
regarding cpd's interactions with people who live with
mental illness and failing to appropriately supervised and
hold accountable officers who violate the rights of people
who live with mental illness. She further alleges that the
defendant officers failed to provide her with Medical
Services during her detention and subjected her to
unreasonable conditions of confinement and violation of the
Fourth Amendment. She also brings state law claims under
the wrongful death act the Illinois survival act and a
claim for intentional infliction of emotional distress
against all the defendants.
On December 17th of 2021 at approximately 11:45 p.m. A
security guard at the Jeffery pub called in a complaint
alleging that Miss Chavez had struck him in the face Mists
Chavez when the officers arrived Miss Chavez told the
officers that she was a veteran with PTSD and to call her
therapist. She also alleges that Miss Chavez's friends told
the officer that Miss Chavez had just been released from
rehab for addiction to alcohol and had been consuming
alcohol that evening and therefore she needed to go to the
hospital plane of alleges despite these statements that the
officers did not do anything and in response to miss
Chavez's Mental Health crisis.
When she arrived at the Third District mave asked for a mask
because she was unvaccinated. She was then held in a room
adjacent to the Tactical office the room the officers
placed Miss Chavez in was 1 of 2 holding rooms in the tack
office that room had a large 1-way marriage directly in
front of a desk in the tack office prior to the date of the
incident paper was placed over the bottom half of the of
the window. So resties could not see the officers as they
worked at their desk.
Um plaintiff alleges the paper covering the window
prevented the officers from being able to monitor while she
was in custody.
As soon as she was placed in the holding cell officers
asked Miss Chavez if she was all right, because she was
crying. She's heard stating. No, I am not they got for plan
a further alleges that Miss Chavez continued to ask to
speak to her therapist while sitting in the holding room
shortly after shutting the door the officers heard Mich
Chavis throw a change from her pocket at the window on
December 18th of 2021 at approximately 1:04 a.m. She
shouted this isn't funny and she threw her boot argues that
when Miss shabas was throwing objects objects at the
holding cell and yelling at the office officers that she
was making a final cry for help.
After Miss Chavez was quiet for 5 to 7 minutes an officer
looked over the paper to check on her. He saw that she was
kneeling on the ground with her shirt wrapped around her
neck the officers activated their body worn camera and
attempted to resuscitate her while their attempts were
initially successful that she eventually expired at the
hospital on December 19th, 2021.
The room that Miss Chavez was placed in had a 1-way mirror
directly in front of the desk and the tack office the
mirror had approximately 15% visibility from inside the
holding room. So where a resties could see the officers
while handcuffed to the bench. The officers would have had
a 100% visibility through that mirror into the holding
room. However, there was paper placed over the bottom half
of the mirror so that the officers would not actually be
able to see the arrestees within the holding cell.
multiple defendant officers and their depositions admitted
that they heard Mavis say that she had PTSD and to call her
therapist the officers believed that she was stating that
she was a veteran and had PTSD as a reason not to arrest
her rather than a cry for help. He officers placed Mavis in
a holding cell that had paper covering the glass window as
such the officers could only see her if they if they stood
on a chair and looked into the cell. Well miss Chavez was
in the holding cell. She was crying for a period of time
and repeated that she had PTSD into call her therapist
plane of alleges that the city had a duty to ensure her
safety when she was in our custody.
Miss Chavez is seen and heard on the body worn camera
asserting that she had PTSD and although not depicted on
body worn camera the officers admit that she later directs
the officers to call her therapist plaintiff will assert
that this put the officers on notice that she was in a
mental health crisis regardless of whether she was asking
for her therapist or based on the officer's belief simply
stating that they should not arrest her because she was a
veteran diagnosed with PTSD Miss shabas was placed in a
holding cell in which she could not be fully observed due
to the paper covering the window Miss shave is this family
will maintain that they are entitled to significant damages
from her suicide. She was an Army veteran who served 2
overseas tours in Afghanistan Kuwait and Korea. She
received numerous medals including Army Commendation Medal
Army Achievement medal meritorious unit Commendation
National Defense service medal and the global war on
terrorism service medal Miss Chavez's military service and
PTSD diagnosis after completing 2 tours overseas are likely
to Garner sympathy with
with a jury
Plane if would also be entitled to attorney's fees. If
there is a verdict in her favor. We expect the petition in
this case to be well over 1 million dollars. We recommend
settlement in this case for 1,750 thousand dollars.
thank you miss fronek any questions from members of the
committee Vice chair Conway was um
and and if if this is a a HIPPA issue to answer then just
let me know that but was
was the um
plaintiff or or deceased plaintiff, uh
On uh, any any prescribed any medication I'm not aware of
that.
I can try to find that out.
Did do you know if she did she indicate that to the
officers? I'm not aware of that. I might understanding is
that all she said that was she was in therapy. She wanted
to speak to a therapist and that she was diagnosed with
PTSD. Okay, um,
I I worry about the dangerous precedent. This says for our
for our for the city's duty of care regarding those in
custody who were intent on on doing themselves harm. So I I
will be a no on this 1. Thank you.
Alderman spaz I I'm looking at you because you usually have
a question.
Oh, I just just going to tell you from my experience. I
don't have legal experience. But as as a first responder,
um, we would regularly regularly go to the 25th district
about calls and every time somebody get arrested. I mean
the firehouse would regularly go there the ambulance
whatever the engine the truck because somebody's always
something happened and somebody's having an attack.
Somebody couldn't breathe somebody needed their medication.
So
Maybe they're hired in about it. I don't know what their
standard protocol is. We don't have anybody here from CPD.
Let us know their standard protocol about this or today
their standard protocol about what about when when when a
when a um, somebody's on when they're being detained and
then they're at at the Lock up and then they then they
bring up all these issues. They have they need their
medication they have asthma they're having an attack. They
have PTSD, you know, whatever it may be. So yeah, so to be
clear Miss Chavez was never brought to the lock up. She was
in a holding cell a holding cell. However, um, my
understanding of Chicago Police Department protocol is that
anyone says they are not feeling well or they need their
medication. They're taken to the hospital.
All right, seeing no other questions. Is there a motion to
recommend do pass on this item?
So moved by Alderman kuden recommending do pass all those
in favor signify by saying I with the exception of
alderman.
Conway
and the opinion of the chair the eyes have it, uh with the
exception of aldermen Conway and the dup pass
recommendation will be reported out at the next city
council meeting. Uh, they're being no further business
before the committee. Can I get a motion to adjourn? So
moved by Alderman Ramirez all those in favor of the motion
signify by saying I
Post the opinion of the chair the eyes have it committee on
finance is adjourned and everyone have a great afternoon
and rest of the week. Thank you.