City to plug costly leak // Daley hits $62 million in unpaid water bills

Two thousand of Chicago's 20,000 delinquent water customers arecity employees, Mayor Daley disclosed Wednesday as he launched acrackdown on scofflaws owing $62.1 million in overdue bills.

Daley's get-tough policy, the latest in a series of crackdownsby Chicago mayors, calls for a 1.5 percent-a-month penalty for latepayment, property liens and water shutoffs as a "last resort."

The mayor urged renters whose landlords have overdue water billsto exercise their "legal right" to pay rent directly to the city toavert a water shutoff.

Of the 2,000 city employees with delinquent water bills, 141work for the Water and Sewer departments charged with collecting thebills, records show.

Daley said notices will be mailed warning city employees tosettle their accounts within 10 days or face legal action that mayinclude garnishment of their wages. He stopped short of saying theemployees would be fired.

The city has asked the CTA, the Park District and othergovernment agencies whose employees are on the scofflaw list togarnishee wages as well, he said.

"These people - better than anyone - should understand theimportance of paying their city bills," Daley said. "After all, thatmoney pays their salary and benefits."

In an attempt to shame delinquent water users into paying up,the mayor released a list of the city's 27 biggest scofflaws.

The Chicago Housing Authority tops the list with $13 million inoutstanding bills, followed by the financially strapped Village ofRobbins, which owes $1.5 million.

Apparently unaware that the CHA recently agreed to repay thedebt at a rate of $250,000 a month, Daley suggested the city rationwater to CHA residents.

"How about giving them (residents) a meter. One shower a day,"he said. "How about (paying) $2 a week, instead of buying a pack ofcigarettes and a six-pack?"

Robbins Mayor Irene Brody could not be reached for commentWednesday. Water Commissioner Samuel W. Hurley Jr. said Brodyrecently said the village "just doesn't have the money." Daleysuggested that vacant land owned by Robbins could be given to thecity in lieu of payment.

During his first week in office, Daley persuaded the CityCouncil to approve a $29 million increase in water and sewer rates.On Wednesday, he disclosed that half of the city's water bills areoverdue and said he is "putting a stop to the idea that the city isnot serious" about collecting its debts.

"No business can stay afloat if it ignores its accountsreceivable," Daley said. "No government can justify repeatedlydipping into the taxpayers' wallets to cover for a poor collectionsystem."

Daniel Arendt, board chairman of Chicago Modern Plating Co., No.7 on the scofflaw list, accused the city of "dirty pool" fordisclosing the name of his company even after the firm has set up apayment schedule.

"It embarrasses us with our family and friends," said Arendt,whose company has agreed to pay $7,000 a month on its $64,191 debt."I'd like to pay the whole thing if I could. But we can't affordit."

Ald. Ed H. Smith (28th), who introduced an ordinance fourmonths ago imposing even stiffer penalties on delinquent water users,said, "It's about time" the city got tough.

Smith said the city should end its "generous" policy of giving a2.5 percent break to water users who pay their bills within 21 days.