State & Local Reports

An OIG inquiry has determined that the Department of Streets and Sanitation (DSS) is violating the Municipal Code of Chicago (MCC) by providing free garbage collection service to at least 1,182 nonprofit entities. Section 7-28-235 of the 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 $134,748 in garbage fees each year, totaling $449,160 as of April 30, 2019. Furthermore, OIG 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. 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.

An OIG advisory determined that the Department of Streets and Sanitation (DSS) was violating the Municipal Code of Chicago (MCC) by providing free garbage collection service to at least 1,182 nonprofit entities. Section 7-28-235 of the 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 $134,748 in garbage fees each year, totaling $449,160 as of April 30, 2019. Furthermore, OIG 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. Finally, OIG concluded that 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.

The audit had three findings, consisting of the following issues: 1. Systems may not be utilized to ensure accuracy, efficiency, and effectiveness in payroll processes, and the billing process for reimbursable expenses needs to be updated, automated, recorded, and tracked more efficiently in the County’s financial system.2. Staffing challenges continues to impact the Fire Department’s overtime expenditures and monitoring.3. Required rest periods and hours limitations needs to be evaluated to ensure the health and safety of employees.