Record #: F2019-120   
Type: Report Status: Placed on File
Intro date: 9/18/2019 Current Controlling Legislative Body:
Final action: 9/18/2019
Title: Inspector General report regarding Department of Streets and Sanitation fee collection waiver of garbage fees for certain nonprofit entities
Sponsors: Dept./Agency
Topic: CITY DEPARTMENTS/AGENCIES - Inspector General, - REPORTS - Miscellaneous
Attachments: 1. F2019-120.pdf
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JOSLPH M FERGUSON INSPECTOR CI" hi I RAL
VIA I 1 LCTPONIC MAIL May 2, 2.019

John F. Tu I ly Commissioner
Department of Streets and Sanitation 121 North LaSalle Street, Room 1107 Chicago, Illinois 60602

Dear Commissioner Tu I ly.

An OIG inquiry has determined that the Department of Streets and Sanitation (DSSJTs ^ violating the Municipal Code of Chicago (MCC) by providing free garbage collection service to at least 1,182 nonprofit entities Section 7-28-235 ofthe MCC, effective January 1, 2016, requires all recipients of City garbage collection service to pay $9.50 per month. Because of DSS' noncompliance, the City is losing at least 5134,748 in garbage fees each year, totaling $449,160 as of April 30, 2019.

Furthermore, OIC found that DSS' list of nonprofit entities receiving free garbage collection is incomplete. OIG identified 25 properties not included on DSS' list that nonetheless receive free City garbage service, and there may be many more.1 Actual revenue loss is thus greater than $449,160 but cannot be calculated because the total number of properties receiving free service is unknown.

Finally, DSS' current provision of free garbage service only to those nonprofits fortunate enough to have received it in the past is inherently unfair. It perpetuates a discretionary benefit that DSS historically granted to entities who knew to request it, or otherwise acquired it, while similarly situated nonprofits are denied this benefit and must pay for private garbage collection.








OIG provided a lisl ol ihe 2S propei lies i:o uSS,

OKI i II. I-7 n 18-0879
Advisory Cor-.cer ning fro;; Ga' bage Collect ion ioi Certain Nonprofit Fririt.ii-.-r- . M;iy ~>„ 7'0:9
THE MUNICIPAL CODE LIMITS DSS'AUTHORITY TO PROVIDE GARBAGE COLLECTION SERVICE.
In our 2014 audit of garbage ordinance enforcement, OIG concluded that DSS was providing garbage collection service to approximately 1,393 nonprofit entit...

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