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Privatization
Quick Hit
by Micah Maidenberg
5:40pm
Wed Jan 5, 2011

What's Next For The Festival Outsourcing Pitch

The bid to privatize seven high-profile festivals in Chicago's Grant Park has a few steps to go before it's a done deal. Shannon Andrews, the spokeswoman for the city's Department of Procurement Services, wrote in an email that city staffers are currently reviewing the single response they received for outsourcing management of the fests. If they decide to move forward on the outsourcing proposal, which would create an admission fee for the Taste of Chicago and institute charges for previously free concerts during both the jazz and blues festivals, the agreement would still need go-ahead from the Chicago Park District's Board of Commissioners as well as the full City Council.

There are concerns among some council members about the impact of levying a charge to get into the Taste. Ald. Walter Burnett (27th Ward), chair of the council committee set up to oversee the city's special events, said he wasn't sold on the $20 admission fee for the event. (Half of the possible new charge would kick back to the entrant in the form of drink and food tickets.) Tellingly, Burnett told the Tribune he doesn't want any repeat of the city's parking meter privatization. It should provide a little cold comfort that following the hurried, now-infamous meter lease that some aldermen are at least once bitten twice shy with regards to privatization pitches.

Tribune food critic Phil Vettel, meanwhile, wrote in a thoughtful column published yesterday that the lakefront fests' "egalitarian nature might be permanently, irretrievably transformed" by the proposed new fees. Here's more from Vettel:

Even if you were broke, you could still pack a picnic basket, find a patch of grass and listen to free music. Consequently, walking around Taste of Chicago provided a more accurate snapshot of who actually lives in this city than one could get while attending Lollapalooza, or a baseball game, or any other admission-based event.

Quick Hit
by Micah Maidenberg
2:05pm
Tue Jan 4, 2011

Privatization Means Ponying Up More For Downtown Music

It appears that taking in music at three of Chicago's main downtown festivals is about to get a lot more expensive.

Concerts headlined by big-name acts at the Taste of Chicago may start costing $20 to $65 while patrons would be charged $10 to attend a show at both the Chicago Blues Festival and the city's Jazz Fest should the city accept the sole bid it received to outsource management of these three events, the Sun-Times reports today. Music at all three events has previously been free. People attending the Taste only for its culinary options would pay $20 to get in, meanwhile, with half of that amount rebated as food and drink tickets.

The idea behind the fees is that new revenue will improve the musical offerings at the festivals. That may be a worthy goal, but it's also true the new charges will exclude people on tight budgets who previously could count on listening to the music at these events for a mere $4.50 -- the cost of a round-trip ride on CTA between Grant Park, where all of these shows take place, and their homes. Four festivals showcasing Latin, Celtic, gospel, and country music are to remain free. In all, the city has lost around $7 million over the past three years managing these seven events. For more on the lakefront fest outsourcing saga, check out WBEZ's Jim DeRogatis' comprehensive coverage here. We've got a call in with the city's Department of Procurement Services for additional details about this privatization bid, and will update this quick hit when we hear more.

Quick Hit
by Adam Doster
1:38pm
Wed Nov 17, 2010

PIRG To Mayoral Candidates: Sign Our Privatization Transparency Pledge

If Chicago's next mayor wants to sell off any additional city assets or services, he or she is going to face scrutiny from aldermen in the City Council. Outside of the council chambers this morning, Illinois PIRG held a press conference to thank the 19 lawmakers who have signed on to the group's privatization transparency pledge (PDF), which asks that members "not vote for any future ordinances that lease public assets or services unless at a minimum there is proper public discourse and protections to ensure taxpayers receive fair value." "Before I endorse any candidate for mayor," said Ald. Joe Moore (49th Ward), one of the signers, "they're going to have to sign on to these principles." Watch:

The group is also calling on aldermen to revive the "Taxpayer Protection Ordinance" (PDF), which was introduced in 2009 and gained 13 co-sponsors but is now stuck in the Finance Committee. That bill would have been useful when the Daley administration rushed through its parking meter lease two years ago. To plug the city's 2011 deficit, aldermen are expected today to approve the mayor's plan to drain the meter reserve fund.

UPDATE (12:47 p.m): Right on cue, mayoral contender Rahm Emanuel has confirmed that he would oppose the sale of Midway Airport, which the Daley administration has been working to swing for a while.

Quick Hit
by Adam Doster
2:15pm
Wed Sep 22, 2010

More Lotto Lease Problems?

As expected, Intralot USA -- one of the private companies whose bid to operate Illinois' lottery system was rejected by the state -- has alerted the Department of Revenue that they are protesting the Quinn administration's selection process, which was finalized last week. In a letter, the company argues that the scoring system used to rate the competing proposals was "arbitrary" and that inadequate training of bid evaluators could be one cause of the discrepancies. State Rep. Jack Franks (D-Marengo) even wants Attorney General Lisa Madigan to investigate.

Everyone might have a better sense of why the state choose the politically-connected Northstar Lottery Group to run its important gaming program if the company hadn't asked state officials to redact several pages of its application. (The files can be downloaded here.) Those officials who conducted the evaluation had already been challenged about the validity of their process, which good government groups thought was rushed and lacked transparency. Jeffrey Cramer, a former U.S. Attorney and current director of Kroll Managing, was hired to conduct an internal audit of the proceedings. Last week, he defended the Department of Revenue. Listen:

Cramer's word should not be dismissed. Considering the winning bidder did not stress the importance of reducing the lotto's reliance on low-income players, though, this latest news doesn't inspire much confidence.

PI Original
by Adam Doster
2:23pm
Wed Sep 8, 2010

In It To Lease It

Chicago Mayor Richard Daley lost popularity after initiating a rushed and shortsighted lease of the city's parking meter system. With the November elections right around the corner, Gov. Pat Quinn and members of the General Assembly should be careful not to fall into a similar trap with the state's lottery system.

PI Original
by Micah Maidenberg
3:45pm
Wed Sep 1, 2010

Chicago's Privatization Debate Hits The Public Health Department

It isn't clear why Mayor Daley apparently sought additional contracting powers for the head of a city department earlier this summer. But with privatization worries at an all-time high, public service workers are trying to figure it out.