TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 18, 2008
COMMITTEE ON STATE LEGISLATION AND RULES
The Honorable Terrence J. O'Brien, President and Members of the Board of Commissioners
Title
Recommendations for the State of Illinois 2009 Legislative Program (As Revised)
Body
Dear Commissioners:
I respectfully submit the following legislative initiatives and recommendations to the Board of Commissioners for their consideration and guidance. These initiatives include new legislation to be introduced in 2009, the third year of the 95th General Assembly.
Legislative Initiative #1
Amend the District’s Act to clarify the definition of allowable costs to be charged to the reserve claim fund in instances relating to the repair or replacement of District property that is damaged by fire, flood, explosion, vandalism or any other peril, natural or manmade.
Section 12 of the District’s Act, in part, provides for establishing and maintaining a reserve fund for the payment of claims, awards, losses, judgments or liabilities which might be imposed on such sanitary district under the Workers’ Compensation Act or the Workers’ Occupational Diseases Act, and any claim in tort, including but not limited to, any claim imposed upon such sanitary district under the Local Governmental and Governmental Employees Tort Immunity Act, and for the repair or replacement of any property owned by such sanitary district which is damaged by fire, flood, explosion, vandalism or any other peril, natural or manmade.
On occasions where repairs or replacements are required due to fire, flood or other peril, there are often ancillary and indirect costs required to mitigate the peril above and beyond the direct repair or replacement of property.
This amendment would clarify this section of the District’s Act by including the words “all cost related to” the repair or replacement of District property damaged by the peril.
Legislative Initiative #2
Amend the District's Act to increase the threshold for the issuance of emergency purchase orders from $25,000 to $100,000.
Section 11.5 of the District’s Act provides that in the event of an emergency affecting the public health or safety, so declared by the action of the District’s Board of Commissioners, contracts may be let to the extent necessary to resolve such emergency without public advertisement.
The section further provides that the Executive Director and certain authorized managers may purchase in the open market without advertisement, any supplies, materials, equipment or services, for immediate delivery to meet bona fide operating emergencies where the amount thereof is not in excess of $25,000. This provision allows District management to react immediately to emergencies until a quorum of the District’s Board of Commissioners meets and formally authorizes a broader emergency action.
In all such cases, a full written account of any such emergency together with a requisition for the materials, supplies, equipment or services required is open to public inspection for a period of at least one year subsequent to the date of such emergency purchases.
In a recent emergency wherein the public health was threatened, authorized District managers were not readily able to secure emergency services because of the current $25,000 limit and the extensive nature of the emergency. This $25,000 threshold has been in place for many years and should be increased to better reflect anticipated repair costs for District facilities.
This amendment would increase the procurement threshold for District managers engaging in emergency work to $100,000.
Legislative Initiative #3
Amend several sections of the District Act which prohibit officers and employees of the District from participating in political activities outside of the workplace.
Three specific sections of the District Act read as follows:
Sec. 4.22. No officer or employee shall solicit, orally or by letter, or give or receive, or be in any manner concerned in soliciting or giving or receiving any assessment, subscription or contribution from any member of the classified civil service for any party or political purpose whatever.
Sec. 4.23. No person shall solicit, orally or by letter, or be in any manner concerned in soliciting any assessment, contribution or payment for any party or any political purpose whatever from any officer or employee in the classified civil service.
Sec. 4.25. No officer or employee in the service of the sanitary district shall, directly or indirectly, give or hand over to any officer or employee in said classified civil service, or to any senator or representative or alderman, councilman or trustee, any money or other valuable thing on account of or to be applied to the promotion of any party or political object whatever. No employee in the classified service shall take any part in the management or affairs of any political party or in any political campaign, except to exercise his right as a citizen privately to express his opinion, and to cast his vote, provided, however, that an employee shall have the right to hold any public office, either by appointment or election, that is not incompatible with his duties as an employee of the District, and provided further that such employee does not campaign or otherwise engage in political activity during working hours. This Section shall not be deemed to authorize conduct prohibited by the Federal Hatch Act by employees subject to said Act.
Sections 4.22 and 4.23 were amendments to the District Act enacted in 1935 and predate the Federal Hatch Act enacted in 1939. Under the Hatch Act which prohibits certain political activity of federal employees and agencies utilizing federal funds none of the prohibitions in Sections 4.22, 4.23 and 4.25 of the District Act would apply to employees while off duty. Section 4.25 was enacted in 1982 and while attempting to clarify political activity in respect to the Federal Hatch Act the Section is silent in respect to allowable political participation of District employees and officers while off duty.
In order that District employees and officers may exercise their rights as private citizens to engage in political campaigns outside of the workplace it is recommended that these sections of the District Act be amended to reflect that the prohibitions detailed within these sections not apply when exercised outside of the workplace and while off duty.
Legislative Initiative #4
Amend the Illinois Property Tax code and the Property Tax Extension Limitation Law to include an annual increase in the debt service extension base equal to the consumer price index or 5%, whichever is less.
In 1995 with passage of the property tax extension limitation law (PTEL) property taxes for non home rule units of government in Cook County became limited in several ways. With certain exceptions, all levies (aggregated) other than those for debt service on bonds are not limited to an annual increase no greater than the increase in the consumer price index (CPI) or 5%, whichever is less. Debt service levies are locked (again with certain exceptions) into a debt service extension base equal to that portion of the extension for a taxing district for the 1994 levy year.
Since enactment of the tax cap the District has managed its operations, budget and aggregate levies to stay within the imposed limitation of no increases greater than the consumer price index.
Similarly, the District has managed its infrastructure projects, bond sales and debt service levies so as not to exceed its debt service extension base. However, due to inflation, the buying power of our debt service extension base has eroded considerably since 1994 and we currently forecast that this “base” will be inadequate to finance our capital and infrastructure requirements into the future.
To ensure that the District has the financing capacity necessary to maintain and modernize its infrastructure that is valued at over $30 billion, this legislative initiative will seek to amend the Illinois tax cap law (PTEL) to allow for annual increases no greater than the CPI or 5%, whichever is less, to the debt service extension base established in 1994. These adjustments to the debt service extension base will not be retroactive for changes in the consumer price index since 1994 but rather begin with an adjustment for the CPI in 2008 and thereafter.
Recommended, Richard Lanyon, General Superintendent, RL:FMF:AJC:ldl
Respectfully Submitted, Debra Shore, Chairman Committee State Legislation and Rules
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 18, 2008