ASSET TRANSACTIONS (2-164-020 et seq.)

Municipal Code of Chicago tit. 2, ch. 2-164, art. I

in effect

Municipal Code of Chicago § 2-164-020 Definitions.

2-164-020 Definitions. Whenever used in this Article, the following words and phrases shall have the following meanings: "Affected Department" means a City department authorized to manage an Asset that is subject to a Transaction. "Asset" means any stationary physical infrastructure that: (i) the City owns, or exercises significant control over, at the time of a contemplated Transaction; (ii) is used by the public and provides a significant public service; and (iii) produces, or is capable of producing, revenue through its use. "CFO" means the City's Chief Financial Officer. "Contractor" means a person who enters into a Transaction with the City. "Independent Advisor" means an individual or firm with expertise in evaluating financial, operational and/or legal issues arising in connection with proposed Transactions. "Laid off" means involuntarily separated from employment with the City as a direct result of a Transaction or Privatization Agreement. "Post" means to post in a prominent, readily locatable and viewable location on the City's website for public review. "Privatization Agreement" shall have the meaning set forth in Article II of this chapter. "Transaction" means the City's sale, lease, or concession of an Asset that: (i) has a term of at least 20 years; (ii) provides for total consideration to the City of at least $400,000,000 over such term; (iii) divests the City of day-to-day control, or limits such control, over the Asset for the term, with or without providing for continuing City oversight regarding the Asset; and (iv) requires the Contractor to use the Asset for the same purpose or purposes for which it was used prior to the Transaction. The term "Transaction" shall not include City infrastructure subject to a privatization that took effect prior to the effective date of this Article. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-030 Transaction requirements.

2-164-030 Transaction requirements. No Transaction shall be entered into by the City unless and until all of the following conditions have been met: (a) The CFO shall, and is hereby authorized to, engage one or more Independent Advisors to prepare a report assessing the proposed Transaction. The compensation paid to any Independent Advisor pursuant to this engagement shall not depend, directly or indirectly, on whether the proposed Transaction closes. The Independent Advisor(s) shall disclose any direct financial relationship with the selected Contractor prior to the execution of the Transaction agreement. The report shall evaluate: (1) whether consideration of the proposed Transaction is in the best interests of the City and its residents; (2) whether the process of selecting the proposed Contractor for the Transaction was fair and transparent; and (3) whether the proposed Transaction provides the City fair value. In preparing the report, the Independent Advisor(s) shall consult, as necessary, with any Affected Departments. Such departments shall provide to the Independent Advisor(s), upon request, information pertinent to the proposed Transaction, including any potential effects on City employees. The primary Independent Advisor shall be engaged a minimum of ninety days prior to the city council vote on an ordinance approving a proposed transaction. (b) The City shall utilize a competitive process to select each Contractor. (c) Each Transaction shall be structured in a manner that preserves the right of the public to continued access to and use of the Asset on fair, nondiscriminatory terms, and shall include an explicit statement of the measures that the Contractor commits to undertake to meet those goals. (d) The Contractor shall be required to provide funding for the City's oversight related to the Transaction and the Asset. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-040 City Council process; approval required.

2-164-040 City Council process; approval required. Each Transaction shall require approval by a vote of the city council, and shall be subject to the following public review schedule: (a) at the time the City issues a request for qualification ("RFQ") for a Transaction, the CFO shall post the RFQ and shall notify the Chairmen of the City Council Committee on the Budget and Government Operations, and Committee on Finance, once the posting has occurred. The RFQ must be posted a minimum of ninety days prior to the city council vote on an ordinance approving a proposed Transaction. (b) at the time the City issues the RFQ referenced in subsection (a), the CFO shall post a concise, plain-English summary of the contemplated Transaction, which shall include a description of the proposed Transaction's purpose and potential public benefits, and a mailing address, email address, web page or other vehicle by which interested members of the public can comment on the proposed Transaction. (c) after the issuance of the RFQ and before the city council vote on an ordinance approving a proposed Transaction, the City shall host a public meeting at which interested members of the public can comment on the proposed Transaction. (d) at least 7 days prior to the city council vote on an ordinance approving a proposed Transaction, the council committee having jurisdiction over the Transaction shall hold a hearing on the proposed Transaction. At least 23 days before that committee hearing takes place: (i) the CFO shall provide to the committee the report prepared pursuant to subsection (a) of Section 2-164-030 and shall post a notice that includes: (1) a brief description of the public purpose(s) underlying the Transaction; (2) a summary of the report referred to in subsection (a) of Section 2-164-030; and (3) a timeline for the execution and closing of the Transaction; and (ii) the Budget Director shall provide to the committee a document indicating the anticipated use of the funds to be received by the City from the Transaction. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-050 Intergenerational Fairness Fund.

2-164-050 Intergenerational Fairness Fund. Except with regard to Inherently Intergenerational Transactions, the Budget Director shall establish a discrete fund to hold at least 10 percent (for purposes of this section, such amount to be termed "Fund") of the Eligible Proceeds to the City from each Transaction structured as a lease or concession that has a term of 30 years or more. Fund monies may be invested by the Treasurer in accordance with his customary standards and practices, but shall be kept segregated from other City funds. The City shall not expend Fund monies until either: (i) one-half of the term of the Transaction has run, or (ii) the City Council, by a 3/4 vote, approves the expenditure. For purposes of this section: the term "Eligible Proceeds" shall mean principal remaining after payment of Transaction-related expenses, debt service and reserves, and shall not include any investment earnings on such principal, and the term "Inherently Intergenerational" shall mean a Transaction whose proceeds are wholly dedicated to and invested in intergenerational obligations and assets, examples of which include City infrastructure improvement or pension funding. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-060 Eligibility of contractors.

2-164-060 Eligibility of contractors. Each selected proposed Contractor shall submit to the City, prior to the Committee hearing on a proposed Transaction, an Economic Disclosure Statement, which shall also be submitted by associated entities as required by that Statement and associated Rules. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-070 Annual Performance Reports.

2-164-070 Annual Performance Reports. (a) All Contractors shall submit annual performance reports to the City and the Affected Department that: (i) describe the financial performance of the Asset over the past year; and (ii) establish the extent to which the Contractor is in compliance with the terms of the Transaction. Each such report shall include detailed information regarding the Contractor's compliance with any MBE, WBE, residency, and EEO/Affirmative Action requirements pursuant to the Transaction, as well as the number of employees engaged by the Contractor and the Contractor's agents to perform work related to the Asset and/or the Transaction. (b) The department of finance shall provide for the posting and maintenance of the information required under subsection (a) of this section. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-080 Ongoing Oversight And Long-Term Protections.

2-164-080 Ongoing Oversight And Long-Term Protections. (a) The Office of Inspector General shall have jurisdiction over any Contractor with respect to that Contractor's performance pursuant to the Transaction. (b) Each Transaction structured as a lease shall include a requirement that the Asset be returned to the City in a good state of repair upon the termination of the Transaction. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-090 Assistance For Laid-Off City Employees.

2-164-090 Assistance For Laid-Off City Employees. In the event any City employees are laid off as a direct result of a Transaction or Privatization Agreement, the City shall comply with the terms of any applicable collective bargaining agreement addressing the treatment of and benefits afforded to such laid-off employees. In addition, the Contractor shall interview any such employee who is qualified for a vacant position related to the Asset and who applies, no later than six months after the date the Transaction is closed and in a manner that complies with the Contractor's hiring procedures, for that position. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-100 Administration.

2-164-100 Administration. The CFO, in consultation with all Affected Departments, is authorized to administer this Article. This authority includes the power to adopt all necessary and reasonable rules and regulations. (Added Coun. J. 11-18-15, p. 14398, § 1)

Municipal Code of Chicago § 2-164-110 Prohibition of privatization of Chicago Waterworks.

2-164-110 Prohibition of privatization of Chicago Waterworks. Notwithstanding any provision of this Code to the contrary, the City is expressly prohibited from entering into a Transaction involving the Chicago Waterworks, as defined by Section 18-29-202, or the sewerage system of the City of Chicago. (Added Coun. J. 7-20-22, p. 50569, § 1)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2605059Fetched: 10/24/2026