REPORT OF THE
COMMITTEE ON FINANCE
The Honorable,
The Board of Commissioners of
ATTENDANCE
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Present: |
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Absent: |
Commissioners Goslin and |
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Also
Present: |
Patrick T. Driscoll, Jr. – Deputy State’s Attorney, Chief,
Civil Actions Bureau; Laura Lechowicz Felicione – Special Assistant to the
President, Legal Affairs; and Burton S. Odelson – Attorney at Law, Odelson
& Sterk, Ltd. |
Court Reporter: Gerri Monahan, C.P.R.
Ladies and
Gentlemen:
Your
Committee on Finance of the Board of Commissioners of Cook County met pursuant
to notice on
Your
Committee has considered the following items and, upon adoption of this report,
the recommendations are as follows:
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283400 |
AMENDMENTS TO THE REAL PROPERTY ASSESSMENT CLASSIFICATION
ORDINANCE (PROPOSED ORDINANCE AMENDMENT).
Transmitting a Communication, dated Please find a proposal amending the Cook County
Classification Ordinance for consideration by the Cook County Board of
Commissioners. The purpose of this amendment is to permit Class S
properties managed by not-for-profit entities the ability to renew the
incentive. At present, only Class S
properties managed by for-profit entities can seek renewal of the Class S
incentive. Submitting a Proposed Ordinance Amendment sponsored by MIKE QUIGLEY, PROPOSED ORDINANCE AMENDMENTAMENDMENTS TO THE REAL PROPERTY ASSESSMENT CLASSIFICATION ORDINANCE BE
IT ORDAINED, by
the Cook County Board of Commissioners that the following sections of Chapter
74, Article II, Division 2 are hereby amended as follows: DIVISION 2. CLASSIFICATION
SYSTEM FOR ASSESSMENT Sec. 74-62. System
established; terms defined. (a) Established. The County hereby establishes the system of
classifying real estate for the purposes of assessment for taxation set forth
in this division. (b) Definitions. The following words, terms and phrases,
when used in this division, shall have the meanings ascribed to them in this
section, except where the context clearly indicates a different meaning: HUD’s
Section 8 renewal policy guidelines means that certain handbook
titled ‘Section 8 Renewal Policy:
Guidelines for the Renewal of Project Based Section 8 Contracts’ as
published from time to time by the United States Department of Housing and
Urban Development Office of Multi-Family Housing, as amended from time to
time, or any successor publication. Mark up to market option means a contract renewal option,
pursuant to Section 524(a)(4)(A) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 [MAHRA] (Title V of
Public Law No. 105-65, October 27, 1997, 111 Stat. 1384ff), as amended by
Section 531 of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 2000 (Pub. L. No.
106-74, October 20, 1999, 113 Stat. 1109ff) (42 U.S.C. § 1437f) or any
successor statute, for eligible properties located in strong markets,
where a rent comparability study conducted by HUD has determined that
comparable market rents are at or above 100 percent of the HUD Fair
Market Rent, and for which HUD is authorized to approve renewal terms
providing rents higher than the HUD FMR.
The mark up to market option includes increasing rents from the HUD
FMR to the level of an existing use restriction on a property. Mark up to market option under
HUD's discretionary authority means a contract renewal option, pursuant to Section 524
(a)(4)(C) or (D) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 [MAHRA] (Title V of Public Law No.
105-65, October 27, 1997, 111 Stat. 1384ff), as amended by Section 531 of the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 2000 (Pub. L. No. 106-74, October
20, 1999, 113 Stat. 1109ff) (42 U.S.C. § 1437f) or any successor statute,
providing rents higher than the HUD FMR, based on the exercise of HUD's
discretionary authority, for properties which do not necessarily meet the
usual eligibility criteria, but do meet a special set of statutory criteria,
in that a vulnerable population is affected; there is a low vacancy rate in
the area, which would make tenant based assistance difficult to use, or a
lack of comparable housing; or the project is a high priority for the local
community, as demonstrated by a contribution of state or local funds to the
property. Section 8 Sec. 74-63.
Assessment classes. (13) Class S. Real estate otherwise entitled to Class 3
classification under this division, consisting of land and existing buildings
and structures, which a. Property qualifies for the Class S
classification if its Section 8 contract has been renewed 1. HUD has approved renewal of the Section 8
contract under the mark up to market option, after finding that: i. The property has received a physical
inspection score of at least 60, in an inspection by HUD's Real Estate
Assessment Center, confirming that the property is decent, safe, sanitary and
in good repair with no uncorrected exigent health and safety (EHS)
violations; ii.
The property does not have a low- and moderate-income use restriction
that cannot be eliminated by unilateral action by the owner. If, however, the
current rent is lower than the use restriction, HUD may use the mark up to
market option to increase the rents to the use restriction level, which would
be a renewal qualifying for the S classification; and iii. A rent comparability study conducted by HUD
has demonstrated that comparable market rents are above 100 percent of the
HUD Fair Market Rent. 2. HUD has approved a contract renewal for
five years of the Section 8 contract under the mark up to market under
HUD’s discretionary authority i. A vulnerable population is affected, ii. There is a low vacancy rate in the area,
which would make tenant based assistance difficult to use, or a lack of
comparable housing, or iii.
The project is a high priority for the local community, as
demonstrated by a contribution of state or local funds to the property. 3. HUD has approved renewal of a Section 8
contract for a not for profit corporation under any available option under
HUD’s renewal procedures as described in HUD’s Section 8 Renewal Policy
Guidelines. b. Additional requirements for qualification
for the S classification are: 1. At least 20 percent of the living units
must be Section 8 units for qualifying low and moderate-income persons. 2. The owner must agree to retain at least the
existing number of Section 8 units for at least five years after the
expiration of the expiring or expired Section 8 contract. 3. For the duration of the Class S
classification period, applicant must file annually with the Assessor, on or
before a date determined by the Assessor, a sworn statement verifying
continuous compliance with the Class S provisions of this division. 4. Applicant must agree to notify the
Assessor's Office if the Section 8 contract is terminated prior to its
expiration date. Applicant shall provide to the Assessor's office a copy of
any notice of default or notice of abatement received from HUD. c. When the applicant applies to HUD for a
contract renewal d. Any property which, as of November 23,
1999, has an existing Section 8 contract with a mark up to market option may
apply for Class S classification for the any portion of the 2001 assessment
year encompassed within the contract term, and for the remainder of the
contract term, including any renewals approved with the mark up to market
option. The classification shall continue until the expiration or termination
of the Section 8 contract. Any property which, as of (DATE
AMENDMENT APPROVED), has an existing Section 8 contract renewal may apply for
Class S classification for any portion of the 2006 assessment year
encompassed within the contract term, and for the remainder of the contract
term, including any renewals approved with the mark up to market option, mark
up to market option under HUD’s discretionary authority or a Section 8
contract that has been renewed by a not-for-profit corporation under any
available option under HUD’s renewal procedures as described in HUD’s Section
8 Renewal Policy Guidelines. The
classification shall continue until the expiration or termination of the
Section 8 contract. e. The incentive may be renewed if the Section
8 contract is again renewed under any of the following three options: 1)
the mark up to market option; 2) the mark up to market option under HUD’s
discretionary authority; or 3) by a not-for-profit corporation under any
available option under HUD’s renewal procedures as described in HUD’s Section
8 Renewal Policy Guidelines. Upon
filing an application with HUD, no less than 120 days prior to termination of
the contract, for renewal of the Section 8 contract f. The Assessor's Office shall adopt rules
consistent with this subsection necessary to ensure proper review of all
factors relevant to determine initial and continued eligibility for the
benefits provided under Class S. * Referred to the Committee on Finance on |
Commissioner
Quigley remarked that the proposed Ordinance amendments will help level the
playing field for not-for-profit entities.
Commissioner Quigley,
seconded by Commissioner Suffredin, moved that the Ordinance (Communication
Number 283400) be approved and adopted.
The motion carried.
Commissioner Butler, seconded by
Commissioner Silvestri, moved approval of the Proposed Ordinance (Communication
Number 284063). Commissioner Gorman asked
leave to be added as a co-sponsor of the Proposed Ordinance.
Commissioner Silvestri, seconded by Commissioner Quigley, moved approval
of Amendment #1 to the Proposed Ordinance. Commissioner Silvestri asked leave
to be added as a co-sponsor of Amendment #1.
AMENDMENT #1
Sponsors: President Todd H.
Stroger, Commissioners William M. Beavers, John P. Daley, Mike Quigley and
Peter N. Silvestri.
BE IT
ORDAINED BY THE BOARD OF COMMISSIONERS OF
Sec. 2-282. Qualifications, Appointment, and Term. term.
(a) The Independent Inspector General shall be a
person who has at least one of the following characteristics:
(1) At least ten (10) years of federal,
state, or local government experience as a law enforcement officer, judge, or
government attorney.
(2) Progressive supervisory experience in an
investigative public agency similar to an inspector general’s office.
(3) Has managed and completed complex
investigations involving allegations of fraud, theft, deception, or conspiracy.
(4) Has demonstrated the ability to work
with local, state and federal law enforcement agencies and the judiciary.
(b) The Independent Inspector General shall have
a four-year degree from an accredited institution of higher learning.
(c) The Independent Inspector General shall be
appointed through the following process: by the President of the Cook
County Board subject to the approval of the County Board.
The Inspector General shall be appointed for a term of three years.
(1) Upon the request of the President (“President”) of the Cook County Board of Commissioners, the Chicago Bar Association and Cook County Bar Association, as well as any other bar association approved by a majority of the Cook County Board of Commissioners (“County Board”) for such submission, shall submit a list of three (3) individuals to the President. The list shall be accompanied by resumes, qualifications and a brief statement detailing each individuals' credentials for the appointment of Independent Inspector General. Recommendations shall include individuals that meet the criteria of this section.
(2) The President
will appoint a selection committee (“selection committee”) to consist of four
(4) Commissioners (two Democrat and two Republican), the Cook County State’s Attorney, and the
Director of Cook County Board of Ethics. The selection committee will conduct
interviews and/or any other such investigations as the selection committee
deems fit, and will nominate one of the individuals on the list to become the
Independent Inspector General. The President maintains his ex-officio
non-voting status as governed in 2-105-C(2). In the event of a tie, the President would
have casting vote authority.
(3) Upon the approval of a majority vote of
those elected and entitled to vote on the
(4) Upon expiration of the Independent
Inspector General’s term, the President may request the
(5) The Cook County Bureau of Human Resources shall be responsible for ensuring that background checks are conducted on the nominees selected by the bar associations. The results of the background checks shall be provided to the selection committee prior to the interview of candidates.
Sec. 2-282. Qualifications, Appointment, and Term.
(a) The Independent Inspector General shall
be a person who has:
(1) A four-year degree from an accredited
institution of higher learning; and
(2) A minimum of ten (10) years of federal,
state, or local government experience as a law enforcement officer, attorney or
judge; and
(3) Prior work experience managing and
completing complex investigations involving allegations of fraud, theft,
deception, or conspiracy.
(b) The
Independent Inspector General shall be appointed through the following process:
(1) Upon the request of the President
(“President”) of the Cook County Board of Commissioners, the Chicago Bar
Association and the Cook County Bar Association, shall jointly submit a list of
three (3) individuals to the President. The list shall be accompanied by resumes,
qualifications and a brief statement detailing each individuals'
credentials for the appointment of Independent Inspector General.
Recommendations shall include individuals that meet the criteria of this
section.
(2) The President
will appoint a bi-partisan selection committee (“Selection Committee”) to
consist of four (4) Commissioners (two representing the majority party and two
representing the minority party on the Cook County Board), the Cook County
State’s Attorney and the Director of the Cook County Board of Ethics. The Selection Committee shall conduct
interviews and/or any other such investigations of the candidates as the
Selection Committee deems fit, and shall nominate one of the individuals on the
list to become the Independent Inspector General. The President maintains his
ex-officio non-voting status as governed in 2-105-C(2). If none of the candidates receives a majority
vote, the President shall cast a deciding vote.
(3) Upon the approval of a majority vote of
those elected and entitled to vote on the
(4) Upon expiration of the Independent
Inspector General’s term, the President may request that the
(5) The Cook County Bureau of Human Resources
shall be responsible for ensuring that background checks are conducted on the
nominees selected by the bar associations.
The results of the background checks shall be provided to the selection
committee prior to the interview of candidates.
Sec. 2-284. Functions, authority and powers. Powers and duties.
In addition to other powers
conferred herein, the Inspector General OIIG shall have the following duties functions,
authority and powers:
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(4) To
request information from and to conduct interviews under oath with
County employees, officers, officials, agents, contractors, sub-contractors,
licensees, grantees or persons or businesses seeking County contracts, grants,
licenses, or certification of eligibility for County contracts, grantees
or licensees for the purpose of investigation of corruption, fraud,
waste, mismanagement, unlawful political discrimination, or misconduct. This includes the power to review past,
present, and proposed County programs, accounts, records, contracts and
transactions.
*****
(11) To
cooperate with the Shakman Compliance Administrator and fulfill the obligations
set forth in the Supplemental Relief Order for Cook County, including providing
copies of complaints, investigating unlawful political discrimination
expeditiously, reporting the results to the Shakman Compliance Administrator,
and providing the Shakman Compliance Administrator with quarterly reports.
Notwithstanding any other provision
of this Ordinance, the Independent Inspector General shall cooperate with the
Shakman Compliance Administrator and fulfill the obligations required in the
Supplemental Relief Order entered into by Cook County in Shakman et al vs. The Democratic Organization of Cook County, et al No.
69 C 2145 (United States District Court for the Northern District of Illinois),
including providing copies of complaints, investigating unlawful political
discrimination expeditiously, reporting the results to the Shakman Compliance
Administrator, and providing the Shakman Compliance Administrator with
quarterly reports.
*****
Sec. 2-290. Removal of Independent Inspector
General.
The Independent Inspector
General may be removed prior to the expiration of the Inspector General’s
his term only for cause and in accordance with the provisions of this
section. The President shall give
written notice to the If no such request is
made within 10 days, the Independent Inspector General shall be deemed
to have resigned his office as of the tenth day after receipt of notice. If no such request is made within 10 days,
the Independent Inspector General shall be deemed to have resigned his
office as of the tenth day after receipt of notice. If a request for hearing is made, the President’s
notice of cause for removal shall constitute the charge against the Independent
Inspector General. Removal of the Independent
Inspector General shall require the affirmative vote of a majority two-thirds
(2/3) of the members of the
Sec. 2-291. Violations and penalties.
(b) In addition to all other available
remedies, civil and criminal, the following penalties shall apply to violations
of this division:
*****
(5) Any person found to have willfully
violated Section 2-285 shall also be subject to a fine of not less than $300.00
and not more than $500.00 for each violation.
Actions seeking the imposition of a fine shall be filed as
quasi-criminal actions subject to the provisions of the Illinois Code of Civil Procedure, as
amended.
*****
Sec. 2-293 Effective Date.
This
Ordinance shall be effective immediately upon passage.
This
Amendatory Ordinance takes effect 30 days after becoming law.
*****
President
Stroger delivered remarks regarding the proposed Independent Inspector General
Ordinance (Communication Number 284063).
(See Attachment #1)
Chairman
Daley entered the following documents into the record: a letter dated May 10, 2007 from Kevin P.
Durkin, President of the Chicago Bar Association (See Attachment #2); a letter
dated May 7, 2007 from Michael L. Shakman of Miller, Shakman & Beem LLP
(See Attachment #3); and a letter dated May 8, 2007 from Laura Lechowicz
Felicione, Special Counsel to the President (See Attachment #4).
Chairman
Daley asked the Secretary to the Board to call upon the registered public
speakers.
1) Michael
L. Shakman - Attorney, Miller, Shakman & Beem LLP
2) George
Blakemore - Concerned Citizen
3) Wayne R. Serbin - Concerned Citizen
4) Jay
Stewart - Executive Director, Better Government Association
Chairman Daley noted that the Sheriff’s Office has requested
an opinion from the State’s Attorney’s Office regarding whether the Independent
Inspector General would have jurisdiction over elected officials. He further stated that Patrick T. Driscoll,
Jr.,
Commissioner Quigley asked that the following issues be
addressed in the State’s Attorney’s opinion:
1) provide a list of those separately-elected officials the Independent
Inspector General would have jurisdiction over; 2) for those offices which the
Independent Inspector General would not have jurisdiction over, what procedures
are currently in place within those offices; and 3) whether or not elected
officials can voluntarily place themselves under the jurisdiction of the
Independent Inspector General.
In response to Commissioner Collins’ inquiry as to whether
the Independent Inspector General, under the Proposed Ordinance, has the
authority to investigate matters concerning the Cook County Board of
Commissioners, Mr. Driscoll replied in the affirmative.
Commissioner Collins voiced concern that the term, “unlawful
political discrimination,” is undefined.
She further commented that a definitions section should be drafted.
Chairman Daley stated that Commissioner Quigley is open to
working with all Commissioners on further amendments and definitions.
With respect to Section 2-284(2), Commissioner Suffredin
asked for clarification from the State’s Attorney’s Office as to who is
considered a “separately-elected County official.” He referenced as examples, the State’s
Attorney and the Clerk of the Circuit Court are State officials. He asked Mr. Driscoll to include this
explanation in the forthcoming legal opinion.
Commissioner Suffredin referred to Section 2-284(6) whereby
the Independent Inspector General can stop an investigation if it threatens to
interfere with an investigation by another law enforcement agency. Commissioner Suffredin asked for
clarification of
Commissioner Suffredin further commented that the four (4)
points raised by Michael Shakman do not seem onerous, and should be considered
as amendments to this proposed ordinance.
Mr. Driscoll stated that he would review these issues.
Commissioner Silvestri requested that Mr. Driscoll supply
the Commissioners with information regarding the practices of other
governmental entities pertaining to the Office of Inspector General.
Mr. Driscoll agreed to provide this.
Commissioner Silvestri voiced concern that, under Amendment
#1, the Cook County Bar Association and the Chicago Bar Association are the
only organizations supplying candidates to the President for the Independent
Inspector General position. He stated
that instead a spectrum of civic organizations should be involved in this process.
Laura Lechowicz Felicione, Special Assistant to the
President, Legal Affairs, responded that the President’s Office is open to an
amendment on this issue.
Ms. Felicione delineated the information that will be
contained in the quarterly reports of the Independent Inspector General.
Commissioner Silvestri voiced concern that other
governmental agencies would have too much power to halt the investigations of
the Independent Inspector General.
Commissioner Peraica stated that the decision to halt an
investigation due to another agency’s request should be discretional.
Chairman Daley noted that Mr. Driscoll will be reviewing
this issue.
Commissioner Silvestri inquired as to the enforceability of
the Independent Inspector General’s recommendations.
Ms. Felicione replied that when action recommended by the
Independent Inspector General is not taken, this fact is made public through
the quarterly report submitted to the Board by the Office of the Independent
Inspector General. She further stated
that if recommended action was not taken, the President’s Office would instruct
them to take corrective action. As to
what other corrective actions may be taken, clarification on this issue is
needed.
Vice Chairman Sims expressed concern that frivolous
investigations could occur because the proposed ordinance is so broad. In her opinion this aspect of the ordinance
should be strengthened.
Commissioner Peraica stated that funding for the Office of
the Independent Inspector General should be commensurate with what other
governmental agencies allocate for similar functions.
Commissioner Murphy stated that neither the Commissioners
nor their staff should be subject to the provisions of this proposed ordinance.
Commissioner Schneider asserted that Mr. Shakman’s
recommendations should be adopted. He further
stated that the Commissioners should receive the summary reports at the same
time that the President receives them.
Chairman Daley replied that the issue concerning the summary
reports would be reviewed.
Commissioner Schneider inquired why testimony and documents
are not accepted by the Independent Inspector General’s Office from labor union
representatives.
Commissioner Quigley replied that this piece of the
Amendment was derived from other governmental models for Inspector
General. He stated that he would further
research this issue.
Commissioner Quigley requested that all of Michael Shakman’s
amendments be submitted to all Commissioners for their consideration for
inclusion. He restated his willingness
to entertain questions from Commissioners, and to consider other amendments.
Chairman Daley requested, on behalf of the Board, that the
State’s Attorney’s Office render an opinion on the issues raised today.
Chairman Daley remarked that with respect to the powers to
investigate the President, the elected officials and all of the Board members,
it would be disingenuous to say to individuals we are authorizing the
Independent Inspector General to investigate you, while exempting
ourselves. This clearly sends the wrong
message.
Commissioner Butler voiced concern regarding how the Board
will define “adequate” funding, and where the funds for an Independent
Inspector General’s Office will come from.
Commissioner Beavers expressed concern that this proposed
ordinance is not modeled after the ordinance approved by the City of
Commissioner Quigley,
seconded by Commissioner Steele, moved to defer Communication Number 284063 and
Amendment #1. The motion to defer
carried.
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286486 |
FIRST AMENDMENT TO LEASE - 16TH DISTRICT FIELD OFFICE. Transmitting a Communication, dated Please place the following Communication on the agenda for
the meeting Board of Commissioners of Cook County of Tuesday, Having voted on the prevailing
side, I am requesting the item listed below which was approved at the April
18, 2007 Board Meeting (Agenda Item #52) be placed on the Agenda for the May
1, 2007 Board meeting for reconsideration, and referral to the Agenda Item #52 – Transmitting a Communication,
dated RAYMOND MULDOON, Director, Real
Estate Management Division requesting approval of the first amendment
to lease covering the lease of space at Landlord: Tenant: Commissioner
Anthony J. Peraica Location: Space occupied: 1,180 square feet Rate per square foot: $15.26 RENT Monthly: $ 1,500.00 Annual: 18,000.00 Rent is inclusive of utilities
with the exception of electricity. Approval recommended. * Referred to the Committee on Finance on |
Commissioner Peraica requested his
Chairman Daley asked Commissioner Peraica to limit his
remarks to the item before the Committee, which is the lease for the District
16 field office.
Commissioner Beavers asked his attorney, Burton S. Odelson,
Attorney at Law, Odelson & Sterk, Ltd. to speak on his behalf relative to
issues raised in the
Commissioner Peraica stated the Appellate Court decision has
not been released.
Commissioner
Silvestri, seconded by Commissioner Beavers, moved the approval of
Communication Number 286486. The motion
carried. Commissioners Beavers and
Murphy voted present.
Commissioner Silvestri
moved to adjourn the meeting, seconded by Vice Chairman Sims. The motion carried and the meeting was
adjourned.
YOUR COMMITTEE RECOMMENDS THE FOLLOWING ACTION
WITH REGARD TO THE MATTERS NAMED HEREIN:
Communication Number 283400 Approved
Communication Number 284063 and Amendment #1 Deferred
Communication Number 286486 Approved
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Respectfully
submitted, Committee
on Finance xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx John P.
Daley, Chairman |
Attest:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Matthew B.
DeLeon, Secretary
The transcript for this meeting is
available in the Office of the Secretary to the Board,