City of Chicago Office of the Inspector General

03/02/2023 | Press release | Archived content

Follow-up to OIG’s Audit of DSS Commercial and High-Density Recycling Enforcement

The City of Chicago Office of Inspector General (OIG) has completed a follow-up to its December 2020 audit of the Department of Streets and Sanitation's (DSS) enforcement of recycling requirements for commercial and high-density residential buildings (i.e. those with five or more units). Based on DSS's responses, OIG concludes that DSS has fully implemented two corrective actions, partially implemented one corrective action, and has not implemented four corrective actions related to the audit findings.

The purpose of the 2020 audit was to determine whether DSS ensured that building owners provided recycling collection services as required by the Chicago Recycling Ordinance. The Ordinance states that owners or occupants of commercial and high-density residential buildings "shall contract with a private hauler, or cause a contract to be entered into with a private hauler, for the provision of source-separated recycling services [ … ]."[1] The City is required to provide buildings found in violation of this requirement 30 days to come into compliance. Continued noncompliance can result in fines ranging between $500 and $5,000 per day. The Ordinance also requires private haulers to submit annual reports detailing the source, type, and amount of recyclables collected. Such information would assist DSS in calculating waste diversion rates, setting goals, and monitoring progress toward those goals.[2] If private haulers do not submit the annual reports, DSS can notify the Department of Business Affairs and Consumer Protection (BACP) and prevent the renewal of the private hauler's business license.[3]

In addition, OIG evaluated DSS' enforcement of reporting requirements for the City's licensed private haulers-companies engaged in hauling refuse and recyclables from commercial and high-density residential buildings. OIG found that DSS did not thoroughly enforce the Ordinance. DSS's Mobile Electronic Ticketing System (METS) did not allow DSS staff to issue citations for Ordinance violations, creating a significant barrier to enforcement. DSS did not maintain a list of commercial and high-density residential buildings subject to the Ordinance; further, DSS did not ensure that private haulers submitted complete, accurate, and timely annual reports detailing the buildings they served and the amount and type of materials hauled.

OIG Recommendations Based on the Results of the Audit

Based on the results of its audit, OIG recommended that DSS,

  • Configure METS to allow DSS staff to issue citations for violations of the Ordinance;
  • Consistently record and monitor the outcomes of recycling inspections to determine, for example, whether building owners received 30-day notices and ultimately came into compliance or were issued citations;[4]
  • Develop a program, with the City's chief sustainability officer, to enforce the Ordinance proactively, in addition to responding to complaints;[5]
  • Ensure that haulers submit complete, accurate, and timely reports;
  • Review each annual report and notify the Department of Business Affairs and Consumer Protection (BACP) of noncompliant haulers so that it can withhold renewal of the hauler's business license until the hauler files a complete report;
  • Develop procedures to incorporate private haulers' diversion data into a Citywide waste diversion rate;
  • Review the design of the annual report to ensure it supports the City's recycling goals; and
  • Ensure that private haulers report all customers who decline recycling services and consider requiring each hauler to submit a list of buildings it serves.

In its response to OIG's audit, DSS described corrective actions it would take. In May 2022, OIG inquired about corrective actions taken by DSS in response to the audit. Based on DSS's follow-up response, OIG concludes that DSS fully implemented two corrective actions, partially implemented one, and did not implement the remaining four. Specifically, DSS has updated METS to allow issuance of citations for violations of the Ordinance; improved its use of Salesforce, ensuring that staff record and monitor the outcomes of recycling complaints; and reminded private haulers to submit their annual reports by the required deadline. DSS has worked with BACP to suspend the business licenses of private haulers who did not comply. OIG urges DSS to develop a proactive approach to enforcing the Ordinance and review the design of the annual hauler report to ensure that it captures the information necessary to assess whether the City is meeting its recycling goals. Additionally, DSS should ensure that private haulers submit accurate and complete reports, report customers who decline recycling services, and consider requiring private haulers to submit a list of buildings served.

OIG thanks the staff and leadership of DSS for their cooperation during the audit and responsiveness to the follow-up inquiries.

Read the full follow-up for OIG's two audit findings and recommendations, as well as DSS's response to the follow-up here.

Read the original DSS Commercial and High-Density Residential Recycling Enforcement Audit here.

[1] Municipal Code of Chicago (MCC) § 11-5-30 (a).

[2] The waste diversion rate-the percentage of waste generated that is diverted from landfills by recycling, reuse, composting, and other diversion means-is a key performance indicator in any recycling program.

[3] MCC § 11-5-220(e).

[4] People can make complaints about lack of required recycling services at commercial and high-density residential buildings through the 311 Call Center and the CHI311 app, this creates a work order in its software system, Salesforce. In response to the complaint, DSS staff inspect the building to determine whether there are recycling services. If not, DSS staff should issue a notice that the owner or occupants have 30 days to come into compliance. If the building is still not in compliance after 30 days, DSS staff should issue a citation.

[5] In June 2020, Mayor Lightfoot appointed the City's first chief sustainability officer to coordinate sustainability efforts across City departments and "help advance the mayor's environmental and climate agenda." City of Chicago Office of the Mayor, "Mayor Lightfoot Announces Chief Sustainability Officer to Join Administration," June 11, 2020, accessed February 6, 2023, https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2020/june/‌ChiefSustainabilityOfficer.html.