During a lengthy Chicago City Council committee hearing on Friday, multiple aldermen voiced frustration over the current migrant crisis and the costs the city has shouldered through contracts with private companies. NBC 5 Investigates’ Bennett Haeberle reports.
During a lengthy Chicago City Council committee hearing on Friday, multiple aldermen voiced frustration over the current migrant crisis and the costs the city has shouldered through contracts with private companies like Kansas-based Favorite Healthcare Staffing, which provides staffing for the city’s 21 migrant shelters.
“I told you Favorite should’ve been gone. They have not set the standard for what we do in our city,” 20th Ward Ald. Jeanette Taylor said during the hearing.
NBC 5 Investigates has been reporting on the hourly rates for Favorite Healthcare Staffing, which contracts show run between $135 to more than $200 an hour – rates aldermen have called “exorbitant.”
Mayor Brandon Johnson’s administration has said those hourly rates were inflated to cover administrative costs for Favorite, including items like hotel fees for out-of-town employees.
Financial records obtained by NBC 5 Investigates show that the city of Chicago has spent at least $57 million in the past year on Favorite Healthcare Staffing.
During Friday’s meeting, Johnson’s administration announced it was working to further reduce costs by encouraging Favorite to hire local employees at reduced hourly rates.
“We’ve been able to from August 7 through September 15 increase local hires from 77 to 265. Favorite is now going to provide a local bill rate resulting in a greater than 20% savings for local positions,” according to Johnson’s deputy chief of staff Cristina Pacione-Zayas.
Local
NBC 5 Investigates has asked both Favorite and the mayor’s office repeatedly what those new local rates are, but had yet to be provided an answer as of Friday.
A newly-hired spokesperson told NBC 5 Investigates that Favorite Healthcare Staffing would not comment for this report.
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Favorite Healthcare Staffing has 750 employees working across the city’s shelters, according to the mayor’s office. In an effort to further reduce costs, the Johnson administration has put out a request for proposal for community-based providers to help run shelters.
Earlier this month, the city announced another $29 million for another company – GardaWorld – to build temporary shelters.
Criticism of the spending continued Friday.
“Today I ask of my colleagues that we consider modifying the shameful contracts practically, in practical terms so that we can support efforts that count,” said Ald. Byron Sigcho-Lopez of the 25th Ward.
NBC 5 has asked for months for financial records – but has only been provided two invoices – including one from last December that shows Favorite turned in an invoice for $20,000 for a nurse working at the High Ridge YMCA.
We also received one $14,000 invoice for a facility manager.
Aldermen have criticized the mayor’s administration and the city’s procurement process with keeping the legislative body in the dark.
Ald. Taylor said the potential costs savings announced by the mayor's office don’t quell her concerns.
“I am not moved by that being 20 percent. Get rid of them. I want them gone,” she said.
NBC 5 Investigates has asked both Favorite Healthcare Staffing and the mayor’s office for specifics about what the new rates are and if contract addenda were necessary or signed by both sides. We have not received a response to thas of Friday afternoon.
