Chicago banking partners, Redlining, Water supply agreement with Joliet, TIF, Police misconduct settlements
The meeting was officially called to order via Zoom at 10:04 AM
Ald. Lopez calls a motion for the Rule 45 report of the previous finance meeting to be passed.
CFO Jennie Bennett proceeds with an overview of an amendment to the ordinance revising the City of Joliet Water Supply Preliminary Agreement.
The ordinance would add the city of Joliet to the water system with Chicago. Terms of the agreement were reset to 100 years with a renegotiating period in 50 years. Joliet will be paying for $600-800 million in additional infrastructure needed.
“[This will establish] a stronger and more collaborative regional supply landscape. Joliet is the 3rd largest city in the state.”-Bennett
Ald. Pat Dowell asks whether or not the agreement allows for Joliet to opt-out of the agreement before the 50 years.
“Yes, because Joliet is agreeing to pay for the entirety of fairly large infrastructure improvements, termination rights lie with Joliet.” -Bennett
Ald. Jason C. Ervin asks whether or not his constituents will have to pay more than Joliet pays currently for water rates.
“We all pay the same rate now… though Joliet has a greater transmission rate, how is this going to impact residents in City of Chicago [due to] the spreading fixed costs among more people. Will we see rates increase or decrease?” -Ervin
After quite a bit of back and forth and clarifying of issues, Bennett says she is very confident that adding Joliet to the system will not cause Chicago to pay more for subsidizing Joliet.
Ald. Raymond Lopez asks if the City of Chicago is trying to buy out or merge with other municipalities in addition. Bennett says “probably not/.” and adds that many regional partners like to have the ability to govern water policy in their region as was a point for Joliet.
Next, there is a discussion on the approval of the 2021 Municipal Depositories for the City of Chicago (banks, credit unions authorized to selected by city to provide depository services)
Comptroller Reshma Soni begins with the list of municipal depositories submitted for approval. This list is mandated to be released on a yearly basis. Currently it is all larger banks.
” We are committed to creating opps for local banking institutions, particularly those owned by women and minorities. However many times this is not feasible…as [small banks] would need to charge city interest rate which is not desirable.” -Soni
Ald. Carrie Austin: “Did any of the small neighborhood banks respond to the RFP?”
Soni: “[Many] banks we proactively called, but those banks did not respond.” Ald. Jason C. Ervin asked what is in the Council’s power to help spur more responses from smaller local banks.
“We might have the ability [later on] to tell smaller banks that they do not necessarily need to hold large amounts of cash, we can add more stability for them allowing them to hold on to cash a bit longer. Though as of now we require fairly high liquidity.” -Soni
Ald. Sophia King points out that given the extensive history of redlining and discriminatory banking practices, it is important to be aware as a council of the current practices of these banks and consider them as they vote on/approve the list.
Ald. Daniel La Spata: “We might have outlawed de jure red lining, but it appears to still be with us. How do we make the case to Chicagoans that these large banks should be making any revenue from our city?”
Soni says there have been smaller banks reaching out offering options for involvement in business with the city. Some of these options proposed are mobile banking and physically going to neighborhoods to assist with setting up accounts
Ald. Greg Mitchell: “Banks have not been amenable to our communities but they still reap benefits. It only becomes a problem when we need to benefit from them. We have to improve housing ownership in our communities. What banks at this point have stepped up at all?”
Mitchell says Bank of America is, in his opinion, is one of the worst offenders and is currently on the list to be approved.
Ald. Raymond Lopez: “Blacklisting banks or threatening them might motivate some of them to have a conversation about lending to Black and Brown communities.”
Lopez proposes that this motion is held in committee instead of voted on. After additional comment from committee, Chairman Waguespack moves to hold this item.
Next, there is an ordinance to issue free permits and fee waivers for buildings facilities and projects used for public purposes for the Department of Education.
Ivan Hansen, executive director of planning and capital construction at Chicago Public Schools gives testimony. He says all applicable provisions from the municipal code will still be met.
Additionally, Hansen says the ordinance will continue to allow funds to be reinvested in chicago public schools capital projects and will not pose any direct fee to the city.
With no questions on this matter, the ordinance is passed unanimously.
Next, Beth Tomlin Deputy Chief Operating Officer for Chicago Park District gives a slideshow presentation on the next agenda item, an ordinance to enter into agreement with Chicago parks to use TIF (tax incremental financing) for improvements to the Austin Town Hall
About 1.5 million in TIF funds would be allocated for this ordinance. The motion was carried and passed.
A discussion for the next agenda item, an intergovernmental government agreement for TIF funds allocated for certain improvements at West Pullman Park followed.
Tomlin mentions that West Pullman Park is one of 18 cultural centers in the city and that funds would go towards roof repair, water damage repair, ADA improvements and auditorium improvements.
Ald. Ed Burke added that West Pullman Park served as the location of groundwork that created the special olympics over 50 years ago.
After praise for this ordinance it was unanimously moved and passed.
Next, an ordinance for an IGA for TIF funding for improvements at Donovan Park was moved and passed unanimously.
Next on the agenda is communications from the dept. of law about the monthly report of cases where judgements and settlements were entered into for January 2021.
After a discussion on authorizing and denying various payments, the committee moved on to the supplemental agenda. At this time, any supplemental agenda documents are not available to download
A lengthy discussion on a particular case against the City of Chicago followed with discussion on whether or not to settle the lawsuit.
The case involves a taskforce including the FBI, DEA and CPD unjustifiably ramming down a door of a family’s apartment after mistaking that apartment for the location of a suspect. This family, the Franklins, became plaintiffs in a suit against the City of Chicago
Renai Rodney, assistant counsel at the City of Chicago Department of Law detailed the case. On March 2017 a group of CPD officers failed to notice or ignored the clearly marked apartments, with the suspect being located below the apartment rammed down. No incident of injury.
Rodney says the dept. of law recommends settling for $175,000 to minimize the chance of city exposure to litigation in court.
Rodney mentions the risk of an adverse verdict. The conduct of CPD officers after entry is disputed. Plaintiffs allege officers held them at gunpoint, swore at them, repeatedly denied giving badge numbers and names, and failed to produce a warrant when asked.
COPA, the civilian office of police accountability found that the plaintiff’s 4th amendment rights were violated.
Medical bills and lawyers fees would also be included in settlement amount. Medical bills totaling 22,335 dollars followed some plaintiffs diagnosed with PTSD and major depressive disorder who then sought counseling.
Alderman Taliaferro expressed concern that in his opinion the city appeared to be “holding the bag 100 percent” in this settlement despite FBI and DEA involvement.
Rodney responded that the City must respond to suits in which it is served. In addition, taskforce agreements with federal officers don’t include indemnification where that org would commit harm with CPD and hold responsibility. She adds a CPD officer made the call to breach door
Rodney was unable to answer whether or not the arrest warrant was served by a federal org or the CPD.
The recommendation for a settlement passed with 21 votes in favor and 6 votes for no. Tagliaferro is among the no votes.
The committee then moved on to a discussion on Anderson vs. City of Chicago. This infamous case involved a fatal shooting of James Anderson, plaintiff’s son, while suffering from a mental health episode.
In September 2015, four officers responded to radio dispatch for a mentally ill call. The plaintiff (victim’s mother) was describing the mental issues son suffered from and asked officers to help take her son to the hospital. Plaintiff directed them to her son’s bedroom.
James was standing in the room with a boxcutter in each fist. One officer attempted to deploy his taser with no apparent effect. The shooting officer asked james to drop box cutter and then fired five shots. This entire interaction lasted less than 5 seconds.
COPA decided the force was reasonable and complied with applicable law. Rodney says the law department “agrees that this is a strong case” but that following a mistrial from 2019, there is a strong likelihood of a protracted trial costing the city even more than the settlement
Rodney says the law department claims the plaintiff is likely to “exploit” the failure to not call someone trained in crisis intervention or the failure to communicate behind the door and preventing this interaction in a confined space
Initial request was 13 million dollars with the city offering to settle for $400,000.
After discussion, this motion was passed 14 to 13 with no votes including the following aldermen: Patrick Thompson, Marty Quinn, Ed Burke, Derrick Curtis, Howard Brookins, Ariel Reboyras, Chris Taliaferro, Nicholas Sposato, Anthony Napolitano…
Brendan Reilly, Raymond Lopez, Matthew O’Shea and Silvana Tabares.
The committee on finance meeting was unanimously adjourned at 1:30 PM
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