Office of Inspector General
City of Chicago
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Report of the Office of Inspector General: *************************
Department of Business Affairs and
Consumer Protection Taxica b Regula tor y Compliance A udit
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March 2015
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866-tO-TIP LINE (866-448-4754) www, chicagmnspectorgeneml. org
Joseph M. Ferguson Inspector General
OFFICE OF INSPECTOR GENERAL
City of Chicago
740 N Sedgwick Street, Suite 200 Chicago, Illinois 60654 Telephone (773)478-7799 Ya\ (773) 478-3949
March 16,2015
To the Mayor, Members of the City Council, City Clerk, City Treasurer, and residents of the City of Chicago:
The City of Chicago Office of Inspector General (OIG) has completed an audit of the Department of Business Affairs and Consumer Protection's (BACP) administration of taxicab regulations in 2013. This audit focused on,
the effectiveness of taxicab medallion auctions; and
compliance with safety inspections, which BACP itself manages as distinguished from other municipalities such as New York City that have privatized that function.
Taxicabs are a vital component of Chicago's public transportation infrastructure, and BACP plays a central role in ensuring the safety ofthe City's taxicabs. In 2013, there were more than 6,800 taxicabs operating in Chicago, all of which were required to pass at least one BACP inspection. Taxicab regulation also generates a significant amount of revenue for the City-taxicab medallion transfer fees alone generated $6.5 million in 2013, while the 2010 medallion auction generated $11.9 million.
OIG found that BACP designed and implemented a medallion auction process that satisfies the requirements of the Municipal Code. However, OIG was unable to verify BACP compliance with all applicable rules and regulations in the auction process because BACP has not finalized sales from the 2013 medallion auction, closed approximately 17 months ago.
OIG also found that although BACP comp...
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