Advisory Concerning the Department of Streets and Sanitation Providing Free Garbage Collection to Certain Nonprofit Entities

Executive Summary

An OIG inquiry has determined that the Department of Streets and Sanitation (DSS) is violating the Municipal Code of Chicago (MCC) by providing free garbage collection service to at least 7,182 nonprofit entities. Section 7-28-235 of the MCC, effective January 7, 2076, requires all recipients of City garbage collection service to pay $9.50 per month. Because of DSS’ noncompliance, the City is losing at least $734,748 in garbage fees each year, totaling $449,760 as of April 30, 2079.

Furthermore, OIG found that DSS’ list of nonprofit entities receiving free garbage collection is incomplete. OIG identified 25 properties not included on DSS’ list that nonetheless receive free City garbage service, and there may be many more.1 Actual revenue loss is thus greater than $449,760 but cannot be calculated because the total number of properties receiving free service is unknown.

Finally, DSS’ current provision of free garbage service only to those nonprofits fortunate enough to have received it in the past is inherently unfair. It perpetuates a discretionary benefit that DSS historically granted to entities who knew to request it, or otherwise acquired it, while similarly situated nonprofits are denied this benefit and must pay for private garbage collection.