As Olympics vote looms, Daley struggles

By Dan Mihalopoulos - Tribune reporter

Mayor Richard Daley often talks about how Chicagoans want a decisive, visionary leader who can get things done without “endless politics,” and that promise of iron control has become key to the city’s bid to host the 2016 Summer Olympics.

But with the pivotal Olympics decision three weeks away, Daley finds himself in one of the most troubled periods of his long reign. Daley’s decision to lease the city parking meter system left motorists furious over skyrocketing rates and balky machines. Then he fumbled in explaining his promise that taxpayers would cover potential losses from the Olympics.

For the first time since he became mayor two decades ago, Daley’s critics outnumber his fans, a Tribune/WGN poll found. The mayor’s approval rating is at an all-time low of 35 percent in Tribune polls, according to the new survey.

None of this is to suggest that Daley is losing his dominance of the City Council or his luster with the city’s business elite. There is no serious challenger on the horizon if Daley, who regularly wins re-election by landslide, chooses to run for a seventh term in 2011. Even more than his legendary father, the 67-year-old Daley is the only game in town.

On Saturday, Daley said he was not surprised by the poll results.

“I can see why,” he said. “People are mad because of the uncertainty of the economy. It’s been going very well and all of a sudden everything collapsed.”

Now, he is looking to the International Olympic Committee’s Oct. 2 decision to provide Chicago with a chance to boost the city’s economy and global reputation — and perhaps provide his own local standing with a much-needed lift.

The mayor’s ability to continue to run the city as he sees fit could hinge in great part on whether the Olympics bid succeeds.

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Chicago is prepared for attack: Daley

BY FRAN SPIELMAN - City Hall Reporter

Chicago is as prepared for a terrorist attack as any big city can possibly be, Mayor Daley maintained Friday. Then he showcased the technology to prove it on the eighth anniversary of 9/11.

The Chicago Fire Department now has a mobile hazardous materials laboratory capable of analyzing suspicious substances on the scene “without ever breaking containment,” officials said.

The $500,000 lab-on-wheels has a remote control robot that can be used to secure samples from “hot” areas without endangering first responders.

“This can allow us to go with a full-scale evacuation and mitigation, knowing that we have a true emergency. No false positives. We can also give an all-clear just as quickly,” said Fire Commissioner John Brooks.

At O’Hare Airport, the city is testing a high-resolution camera capable of detecting airfield debris that may be invisible to the naked eye.

“This is able to pick up screws, metal objects, other objects that may cause or could impact damage in aircraft. It allows for a cleaner airfield using technology on top of human inspection,” said Aviation Commissioner Rosemarie Andolino.

And thanks to an “exciting partnership” with Columbia College, the city is developing virtual reality software that simulates a high-rise fire.

“It’s an interactive learning tool that … will train you and educate you as far as what needs to be done if there’s an evacuation of your building,” said Ray Orozco, executive director of the city’s Office of Emergency Management and Communications.

After showcasing the bells and whistles, Daley got down to basics. He urged Chicagoans to volunteer their time to help others.

“Honestly, it’s a great way to honor the victims and heroes of 9/11,” Daley said.

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Chicago approves Olympic host city contract

CHICAGO (AP) -The Chicago City Council has unanimously approved a contract that puts taxpayers on the hook for millions of dollars if the city gets the 2016 Summer Olympics.

Mayor Richard Daley needed the council’s backing to go through with his pledge to sign the International Olympic Committee’s host city contract if Chicago gets the games. The council voted 49-0 on Wednesday to approve the deal.

The contract requires the city to take full financial responsibility for the Olympics and a proposed $4.8 billion operating budget. Several aldermen say the layers of insurance greatly reduce the risk to taxpayers.

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One step closer to City Council approval of Olympics host city contract

By Hal Dardick and Kathy Bergen

A City Council committee today approved an ordinance that would authorize Mayor Richard Daley to sign the Olympics host city agreement that would leave taxpayers on the hook if there are major cost overruns for the 2016 Games.

The contract would require the city to cover cost overruns beyond the $750 million already backed by the city and state. Olympic organizers say insurance policies would protect the public, making it unlikely they would even dip into the $750 million.

To some extent, today’s vote was symbolic—aldermen already approved a measure in January that gave Daley approval to sign the host city contract.
But Daley then encountered some summer opposition after he said while overseas in June that the city would financially guarantee the Games. Aldermen said they had approved no such thing—though their assent was included in their January vote to back a $500 million city financial guarantee.

Daley responded by saying the Council would take another vote before he signs the contract in advance of the Oct. 2 IOC vote to pick which of the four finalists gets to host the 2016 Summer Games.

The full council is expected to consider the Olympics ordinance on Wednesday.

Chicago 2016 President Lori Healey called the vote an critical step for the bid as it moves toward an Oct. 2 vote in Copenhagen, where the International Olympic Committee will choose between Chicago, Madrid, Rio de Janeiro and Tokyo.

“I think the spirit of partnership that we exhibited with the City Council is one that’s really important, and even coming down to the disagreement over one word,” she said. “I mean, we got 99.9 percent of the way there.”

The bid committee is aiming for unanimous support from the full council Wednesday, Healey said. “We want to go to Copenhagen with support. We got almost all the way there.”

“No matter what,” she said, “there’s a believe that our committee is prepared to be transparent and open all through this process, if we’re selected to win.”

“I think tomorrow, no matter which way we look at it, the City of Chicago shall stand behind the bid, and we will all be there, and we want to make it clear,” Ald. Robert Fioretti (2nd) said to a round of applause after the vote.

Also part of the proposal are provisions that would disclose contract details about the 2016 Olympics but not require stricter oversight by the inspector general that one alderman requested.

The proposal, introduced by the city’s top lawyer, Mara Georges, says the City Council “may” direct the inspector general to review quarterly reports from the Games’ organizing committee.

Ald. Manny Flores (1st) wanted the measure to say “shall,” which would make it a requirement, not an option.

The same may vs. shall dynamic played out in another provision to allow–but not require—public interest organizations to analyze the Olympics for the council.

Georges said alderman had requested “discretion” on the issue, explaining the reason for using the word “may.”

Alds. Bernard Stone (50th), Freddrenna Lyle (6th) and Helen Shiller (46th) spoke in favor of maintaining council “discretion.” Mandating outside oversight would amount to “ceding our authority,” Shiller said.

Ald. Joe Moore (49th) disagreed, saying that without outside oversight “the City Council would take on the role of a clerk.”

An attempt to make the inspector general oversight a requirement lost on a 24-3 vote. The three council members voting on the losing side were Ald. Richard Mell (33rd), Moore, and Ald. Eugene Schulter (47th).

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Chicago aldermen now back city’s bid for 2016 Olympic Games

Financial report and insurance policies lighten the mood in City Council chamber

By Dan Mihalopoulos and David Heinzmann – Tribune reporters

Just a couple of months ago, some Chicago aldermen expressed doubt about the finances underlying Mayor Richard Daley‘s bid for the 2016 Olympics, but on Tuesday it was hard to find anything but enthusiasm inside the City Council chamber.

One after another, aldermen praised the Chicago 2016 bid team, saying their concerns have been allayed by a Civic Federation report unveiled last week that gave a qualified seal of approval to budget projections for the Summer Games. Also pacifying aldermen is a safety net of insurance policies intended to safeguard taxpayers.

Ald. Pat Dowell (3rd) said she had not been an unabashed fan of the Olympics until the bid team’s recent community outreach efforts.

“My skepticism has waned immensely and I now support wholeheartedly the move to bring the Games to Chicago,” she said.

Ald. Joe Moore (49th), who clashes with the mayor more than perhaps any council member, said he now has “a lot more comfort” with the Olympic effort.

Civic Federation President Laurence Msall briefed the committee on his watchdog organization’s financial review of Chicago 2016′s budget. Bid Chairman Patrick Ryan also made a presentation.

Stung by Daley’s pledge in June to sign the Olympic host city contract and harness the city with full financial responsibility for the Games, aldermen introduced a raft of proposals this summer to try to increase their influence on the Olympic bid.

Ald. Manuel Flores (1st) pushed an ordinance that would have limited the city’s financial liability to $500 million. But that garnered little support, and Flores made it clear Tuesday he has no intention of pushing forward with that plan.

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Chicago 2016 Olympic Bid Delegation Releases Stewardship Report

Today, Chicago 2016 announced the release of the committee’s Stewardship Report, a detailed document that demonstrates Chicago 2016’s commitment to transparency, sound management practices, effective fund-raising and track record of cost containment. The report is the first of its kind produced by a U.S. bid seeking the honor of hosting the Games.

As outlined in the report, the bid has:

• been 100 percent privately financed; revenues through June 30, primarily from contributions, were $76.9 million, $3.7 million ahead of the overall budget
• managed expenses within its approved budget
• demonstrated commitment to diversity and inclusion
• leveraged best practices and procedures
• relied on experts to ensure the bid’s plan is achievable and responsible and manages delivery and financial risk

“The Stewardship Report provides a detailed summary of how the bid is using its resources,” said Patrick G. Ryan, chairman and CEO of Chicago 2016. “If we are fortunate enough to win the honor of hosting the Games, the residents of Chicago can expect similar transparency with quarterly financial reports to the city council.”

The report also explains how the bid has been shaped and strengthened by contributions from thousands of supporters.

“Nearly 1.500 individuals and organizations have made financial contributions,” Ryan said. “Many thousands more have given of their time and talent. Chicago-area businesses and organizations have been extraordinarily generous in providing pro bono support, and our list of volunteers stands at more than 20.000.”

Also this week, the Civic Federation of Chicago released a report on the projections and estimates contained in Chicago 2016’s financial plan for the Games.

The report said that “the operating budget, including venue construction, proposed by Chicago 2016 is fair and reasonable” and recommends that the Chicago City Council provide oversight and receive “regular reports.”

“Our intention was always to work closely with the council if we are awarded the Games, and periodic reports on our progress would be a key part of that effort,” Ryan said.

The Stewardship Report can be found online at chicago2016.org/Stewardship.

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Chicago Olympics bidders renew pitch to aldermen

By David Heinzmann

Ald. Ed Burke

If Chicago wins the 2016 Olympics next month, Alds. Edward Burke and Carrie Austin would be the City Council’s representatives on the organizing committee that will plan and run the Games, according to a draft ordinance reviewed by the Tribune.

The finance committee, chaired by Burke (14th), has scheduled a hearing today to consider renewing its formal backing of Mayor Richard Daley’s plans to win the 2016 Summer Games. The proposal expected to be introduced at the hearing covers several points that Daley and bid leaders say will ensure financial oversight of Olympic business.

The measure calls for regular financial and operations reports to the finance committee, as well as the government and business affairs committee, which is chaired by Austin (34th). Bid Chairman Patrick Ryan said the quarterly reports to the Council are part of an effort by his team to treat alderman like shareholders in a publicly held company. Bid leaders also say that contracts awarded in the development of the Olympics will be disclosed and posted online.

Bid leaders have been battling criticism that they have lacked openness all summer. After Daley and Ryan did an about face in June, agreeing to accept full financial responsibility for the Games, several aldermen said they were reconsidering their support for the Olympics. But after a series of meetings with Ryan’s team, many aldermen have said they are likely to support the bid.

Although the Olympics will be backed by public financial guarantees, the Olympic organizing committee would be a private entity. Ryan has rebuffed suggestions that the committee should submit itself to public disclosure laws, citing the privacy concerns of the IOC.

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Chicago 2016 opens the books on bid spending

By: John Pletz

(Crain’s) — Chicago 2016 offered up additional details Friday on its plans to finance an Olympics, as well as on its own financials, in an effort to reassure aldermen ahead of a key City Council vote in two weeks.

Patrick Ryan, CEO of the bid committee, spelled out various types of insurance that he says will protect against the need to use taxpayer dollars to fund the games, which organizers predict would cost $4.8 billion to host.

But the primary taxpayer protection remains Mr. Ryan’s ability to keep the project on budget over the next seven years if Chicago is awarded the games by the International Olympic Committee on Oct. 2. He’s counting on a $450-million cushion built into the budget, which the Civic Federation of Chicago declared this week is “fair and reasonable.”

The City Council will be asked Sept. 9 to authorize Mayor Richard M. Daley to sign a contract with the International Olympic Committee that guarantees Chicago will foot the bill for whatever it takes to put on the games by 2016 and to absorb any financial losses.

The city agreed to put up $500 million and the state committed $250 million if the games show an operating loss on paper, something that Mr. Ryan stresses hasn’t happened before when a U.S. city has hosted the Olympics. But previous games have been plagued by cost overruns and, in the case of Vancouver recently, funding woes for projects such as the athletes’ village.

Mr. Ryan detailed various types of coverage against specific risks, from liability for accidents, catastrophic acts that would cancel the games or financial default of a corporate sponsor, as well as policies related to construction delays, cost overruns or funding shortfalls. Premiums for such coverage will top $68 million.

He laid out commitments for $500 million in public liability coverage and another $500 million in “all risk” umbrella coverage to cover the deductible on such coverage that would be used before the city or state money.

However, there is no insurance if Chicago is unable to meet its goal of selling $1.8 billion in corporate sponsorships, something labeled “optimistic” in a report this week by the Civic Federation, which analyzed the plan at the aldermen’s request. Chicago 2016 intends to purchase $100 million in insurance against sponsorship default, essentially enough to cover the loss of one of the top-level sponsors after a contract has been signed.

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Going for the Games: Chicago bid team has plan to cover losses

Package would shelter city if Olympics are a flop, panel says

By David HeinzmannTribune reporter

After receiving a favorable review of their finances this week, leaders of Mayor Richard Daley’s Olympic committee hit City Hall on Friday to sell aldermen on their plans to safeguard taxpayers.

Bid Chairman Patrick Ryan also said the committee, Chicago 2016, has altered the structure of its financial safety net, putting up a $500 million package of insurance policies as the first defense against potential losses at the proposed 2016 Summer Games. In previous presentations, the plan was to first use an expected $450 million contingency fund to pay for losses.

But over the last several months, the bid’s insurance broker,Aon Corp., negotiated deals with insurance companies that would include coverage kicking in before the Chicago Olympic organization had to dip into its own funds, said Jessica Fairchild, Chicago 2016′s general counsel. Aon, the giant insurance brokerage founded by Ryan, has donated its services, Fairchild said.

The arrangement would put more distance between taxpayers and the risk of a financial burden if the Games were a failure, Ryan said.

Bid leaders have been touting the soundness of their plans since the Wednesday release of a review of their books by the Civic Federation, a non-partisan watchdog group hired by the City Council. The Civic Federation actually hired another firm, L.E.K. Consultants, to conduct the review. L.E.K. has a pending bid with the city for a contract at O’Hare International Airport.

Chicago 2016 and the Daley administration have been waging a public relations battle to reassure Chicagoans that the mayor did not put their pocketbooks in harm’s way in June when he changed his stance and agreed to sign the International Olympic Committee’s standard host-city contract.

The contract puts full financial responsibility for the Games on Chicago. Earlier this year Daley said he would not sign the contract without alterations that limited Chicago’s financial exposure.

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Chicago 2016 takes out Insurance for Olympic Games

CHICAGO – Chicago 2016 is taking out $500 million worth of insurance, reassuring that tax-payers will not have to cover the costs of the Olympics.

CEO Pat Ryan said that money would be paid out first, should something go wrong with the Olympics. But Ryan said that Chicago 2016 plans on doing their job and doesn’t plan on using the insurance or any of tax-payer’s money to pay for the games.

Some of the things insured are emergencies such as a pandemic or any act of terrorism that would happen during the Olympic games.

Today, top executives of the 2016 committee briefed alderman on this latest bid plan.

The International Olympic Committee plans to comment on Chicago’s bid next week.

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