By a vote of 41 to 7 on April 24, Chicago’s City
Council approved Mayor Emmanuel’s $1.7 billion private public partnership
Infrastructure Trust ordinance, following six weeks of behind the scenes maneuvers,
and the mayor’s agreement to nine key changes in the original proposed
ordinance. Likening the current ordinance to former Mayor Daley’s deal leasing
city parking meters to a private contractor, the seven dissenting aldermen complained
about lack of City Council oversight and public transparency in the final
measure as passed.
After six weeks of vetting by the Better Government
Association and City Council committees, Mayor Emmanuel did accept the
following changes to his initial proposal:
1.
Originally, all five
board members were required to have finance experience. Now, one of the board
members must be an Alderman.
2.
Originally, the ordinance
appointed Boeing CFO James A Bell to the board. Now, all board seats are open
and subject to City Council approval.
3.
Originally, the board
could remove one of its members by a majority vote. Now, only the Mayor can
remove a board member, and removal must be for cause.
4.
Originally, there was no
recusal provision for a board member’s financial conflict of interest. Now, a
board member must refuse to participate in discussion or voting on any trust
deal involving personal or financial interest of the member, including a
trustee’s business performing work for the Trust, or receiving Trust funds for
deposit.
5.
Originally, the Trust
board was required only to develop “criteria” for financing infrastructure
projects. Now, the Trust board must directly develop the details of each Trust
financing.
6.
Originally, there was no
provision for public disclosure of the details of trust transactions. Now, each
investor will be required to make full financial disclosure, which will be made
public on line.
7.
Originally, Trust board
meetings and records were not directly subject to the Illinois Open Meetings
Act and the Illinois Freedom of Information Act. Now, they are expressly
subject to both statutes.
8.
Originally, Trust
contracting was not subject to City of Chicago MBE and WBE contracting requirements.
Now, all projects financed by the Trust are subject to city of Chicago MBE/WBE
set asides.
9.
Originally, City Council approval
was not required for each Trust project involving city property. Now, City
Council approval is needed for any Trust project involving “present or
anticipated funds, revenues, assets or properties of the City.”
The last of these nine changes did not satisfy the
dissenting aldermen, since a lot of projects to be funded by the Trust could
involve property owned by Chicago Public Schools, The Public Building
Commission of Chicago, the Chicago Park District, and the Chicago Transit
Authority. All of these other agencies are separate units of local government
under Illinois law, and though they are headed by mayoral appointees, none of
them is subject to City Council oversight.
Dissenting 32d Ward Alderman Scott Waguespack
introduced an alternative ordinance that would have placed each and every Trust
investment under City Council approval, but his proposal was rejected. Chicago’s
Inspector General Joseph Ferguson objected to the fact that the ordinance, as
passed, does not subject Trust dealings to the City of Chicago ethics
ordinance, city personnel rules, or a federal prohibition on taking politics
into consideration when hiring and firing employees. Several aldermen mentioned
projects in their own wards which could be financed by Trust money, but so far
the only specific Trust project disclosed is retrofitting City owned buildings
with energy efficiency improvements, and paying back Trust investors with the
resulting utility bill savings.
Two of the dissenting aldermen succinctly summed up
objections to the ordinance during the more than two hours of City Council
debate. Fifteenth Ward Alderman Toni
Foulkes said, People have been promising us over and over and over again to
trust. And we’ve been let down. And now people are afraid. They’re terrified.”
Thirty fifth Ward Alderman Rey Colon quipped, “We have something called PMT. It’s
parking meter trauma.” Mayor Emmanuel would only respond, “There’s medication
for that.”
