TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 15, 2023
COMMITTEE ON JUDICIARY
Mr. Brian A. Perkovich, Executive Director
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Request for Order approving and adopting the Hearing Officer’s Report consisting of Findings of Fact, Conclusions of Law and Orders to the Board of Commissioners in the administrative appeal of City Colleges of Chicago Community College District No. 508 v. Metropolitan Water Reclamation District of Greater Chicago, Appeal No. 22B-004
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Dear Sir:
On August 11, 2022, the Board of Commissioners (“Board”) authorized the appointment of a Hearing Officer to preside over the administrative appeal filed by City Colleges of Chicago Community College District No. 508 (“City Colleges”) challenging the District’s classifications as Tax-Exempt Users (“TXEs”) under the District’s User Charge Ordinance (“Ordinance”) of Richard J. Daley College, Malcolm X College, Harry S. Truman College, and Wilbur Wright College in Chicago, Illinois. TXEs are required under the Ordinance to annually pay User Charges to the District.
By way of background, on March 2, 2022, City Colleges appealed such classifications to the Director of Monitoring and Research (“M&R”) contending that these colleges should instead be classified as Local Government Users (“LGUs”), which are not required to pay User Charges to the District under the Ordinance. On June 13, 2022, the Director of M&R issued a written determination upholding those TXE classifications, and on July 14, 2022, City Colleges petitioned the Board to hear its appeal (“Board Appeal”) of the Director of M&R’s written determination. The Board Appeal was filed in a timely manner.
On November 30, 2022, a Preliminary User Charge Hearing was held in the Board Appeal before the assigned Hearing Officer. When the matter was not resolved, the case was continued for a Formal User Charge Hearing. On April 26, 2023, a Formal User Charge Hearing was held at the District’s Main Office Building Annex at 111 East Erie Street in Chicago, Illinois. At the conclusion of the hearing, the assigned Hearing Officer took the matter under advisement. On June 5, 2023, the assigned Hearing Officer submitted a written report containing her determination of the User Charge classifications of the colleges at issue, findings of fact, conclusions of law, and orders (“Report”). The Report denied City Colleges’ appeal and held that “[t]he City Colleges of Chicago District No. 508 are not considered Local Government Users under the User Charge Ordinance. The User Classification for the City Colleges of Chicago Community College District No. 508 is ‘Tax-Exempt User’ under the User Charge Ordinance.”
Pursuant to Section IX(a) of the Rules Governing Appeals to the Board of Commissioners Under Section 9(b) of the User Charge Ordinance of the Metropolitan Water Reclamation District of Greater Chicago, the Report is hereby transmitted to the Board for approval.
Accordingly, it is hereby requested that the Board enter an Order approving and adopting the Hearing Officer’s Report consisting of Findings of Fact, Conclusions of Law and Orders to the Board of Commissioners in the administrative appeal of City Colleges of Chicago Community College District No. 508 v. Metropolitan Water Reclamation District of Greater Chicago, Appeal No. 22B-004.
Requested, Susan T. Morakalis, General Counsel, STM:CMM:KHY
Recommended, Brian A. Perkovich, Executive Director
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 15, 2023
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