===== PDF PAGE 7 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO PUBLIC AFFAIRS COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: @A. City Museum Management Review and Discussion FILE NUMBER: COMMITTEE AGENDA DATE: Aug. 30, 2021 COUNCIL AGENDA DATE: STAFF REVIEW: Tom Dabareiner, AICP SIGNATURE a APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE ITEM SUMMARY: On February 4, 2019, the City Council approved a contract with Phalen Consulting Inc. for City Museum Management Services (Resolution No. 2019-R-0008). The contract is a two-year agreement with a third year automatic renewal option unless either party desired to terminate the agreement. A copy of the contract is included with this memo. The contract included a conceptual budget within its scope. Of course, in reality, healthy budgets must change with the times. Museum Staff recently prepared a detailed budget overview to make it easier to understand the activities at the West Chicago City Museum, their costs and the amount of staff time required to implements each task. A copy of the current Budget Overview is also included with this memo for your consideration. The Museum Manager will be available to answer any questions, as will the Community Development Director. ACTION PROPOSED: Discussion and consideration of next steps. COMMITTEE RECOMMENDATION: Pc: Budget Overview Current Contract ===== PDF PAGE 8 ===== [Extraction: OCR (rendered-page OCR)] WEST CHICAGO CITY MUSEUM BUDGET OVERVIEW ($88,200) SUMMARY Mission: The West Chicago City Museum is a dynamic history and art center that inspires and involves the community through research, programs and exhibits. The museum vows to encourage and fulfill the cultural needs for expression, as well as promote acceptance and understanding of the West Chicago community. Management: Since 2013 the West Chicago City Museum has been managed by Phalen Consulting Inc. through a contractual agreement with the City of West Chicago. EXHIBITS Museum Exhibits First floor 1x a year exhibit $6,000; 10% staff time New exhibit opens May of each year, large overarching local history theme; printing, design and publicity expenses. Second floor exhibits $3,000; 10% staff time Rotating exhibits on the second floor of the museum, 3-4 new displays a year on specific local history topics; printing, design and publicity expenses. External Outreach Exhibits $3,200; 10% staff time Local history displays in the community- schools, businesses, library, and events; printing and publicity. COLLECTIONS Collection Database $800 Archival Housing Supplies $1,200 30% staff time EDUCATIONAL PROGRAMS K-12 Educational Programs $1,000; 10% staff time In-class programs, checkout classroom kits and virtual programs; reproduction objects, kit supplies, technology, publicity and printing expenses. Adult Historical Reading Program $1,000; 5% staff time Non-fiction reading group meets 10x a year; refreshments, book and publicity expenses. Children/Family Programs $3,500; 5% staff time 10-12 history themed craft programs; supplies and publicity expenses. Tales Tombstones Tell $1,000; 5% staff time Annual Cemetery Walk; candles, publicity, printing, refreshments, costumes and prop expenses. PARTNERSHIPS & VOLUNTEERS Community Arts Programming $1,500 Volunteer Recognition $500 5% staff time MUSEUM MANAGEMENT Staff: Part-time, 5 member staff $60,000 Operations: Visitor Services, Office Supplies, Membership Fees, Professional Development, Human Resources and Contractual Expenses $5,500, 10% staff time ===== PDF PAGE 9 ===== [Extraction: OCR (rendered-page OCR)] RESOLUTION NO. 2019-R-0008 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A CERTAIN CONTRACT BETWEEN THE CITY OF WEST CHICAGO AND PHALEN CONSULTING INC. FOR CITY MUSEUM MANAGEMENT SERVICES BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor and City Clerk are hereby authorized to execute and the City Clerk is authorized to attest a certain Contract between the City of West Chicago and Phalen Consulting, Inc. for museum management services for a two year period not to exceed $88,400 annually, in substantially the form attached hereto and incorporated herein as Exhibit “A”. a E APPROVED this “+ day of encann , 2019. aves: 12 NAYS: om ABSTAIN: _C ABSENT: © ReAtee Mayor Ruben Pineda f = ATTEST: Vit, Sith ie; ity Cleryé Nancy M. Smith ===== PDF PAGE 10 ===== [Extraction: OCR (rendered-page OCR)] AGREEMENT BETWEEN THE CITY OF WEST CHICAGO AND PHALEN CONSULTING FOR THE OPERATION OF THE WEST CHICAGO CITY MUSEUM This Agreement (hereinafter “AGREEMENT”) is entered into this +” day of February, 2019 between the City of West Chicago, an Illinois Municipal Corporation, (hereinafter "CITY") with offices located at 475 Main Street, West Chicago, Illinois 60185, and Phalen Consulting, Inc. (hereinafter, “PHALEN”) with offices located at 787 Hickory Lane, West Chicago, Illinois 60185. RECITALS WHEREAS, the CITY owns and operates the West Chicago City Museum and its ancillary buildings (hereinafter “MUSEUM”), where a collection of West Chicago historical artifacts and exhibits are housed and or displayed; and WHEREAS, Sara Phalen, sole shareholder of PHALEN, has been affiliated with the MUSEUM, either as an employee or an independent contractor, since 2006, and has worked extensively in all areas of the institution and is educated and professionally trained in the management, oversight, operation and direction of museums and non-profit entities; and WHEREAS, the CITY desires to have PHALEN provide professional consulting services in the operation of the MUSEUM and employ its expertise in operating educational facilities and programming to create new and exciting ways to present the history and culture of the CITY and to preserve and care for the approximately 34,000 item collection which the CITY holds in public trust; and WHEREAS, PHALEN desires to provide professional consulting services for the operation of the MUSEUM; and WHEREAS, the parties desire to enter into this AGREEMENT in order to provide a full statement of their respective obligations in connection with PHALEN’S exclusive, non-transferable license to operate, occupy and utilize the MUSEUM. NOW, THEREFORE, in consideration of the promises and mutual covenants herein, and other good and valuable consideration acknowledged by the parties, the parties agree as follows: ARTICLE L. SPACE, STAFF, EQUIPMENT, AND MISCELLANEOUS ITEMS 1.1. Description of Space and Use: The physical premises to be operated by PHALEN shall include the four facilities listed in Attachment “A” attached hereto and made a part hereof, which facilities constitute the physical premises of the MUSEUM. 1.1.1 PHALEN agrees to operate the MUSEUM and its buildings in compliance with the mission of the MUSEUM, as follows: “The West Chicago City Museum is a dynamic history and art center that inspires and involves the ===== PDF PAGE 11 ===== [Extraction: OCR (rendered-page OCR)] IW 13 1.4 1.5 community through research, programs and exhibits”. Staffing: PHALEN shall provide all staff necessary to support the operation of the MUSEUM in a manner that is consistent with the ethics, standards and professional practices of the American Alliance of Museums (www.aam-us.org) which are incorporated herein by reference. 1.2.1 PHALEN shall serve as the Director/Curator of the MUSEUM, and shall be responsible for fulfilling the goals and responsibilities described in Attachment B, attached hereto and made a part hereof. 1.2.2 _PHALEN may employ or contract with support staff for educational and collection management purposes at its sole cost and expense. Support staff employed or contracted by PHALEN shall not be considered employees of the CITY. PHALEN shall be responsible for complying with all existing federal, state and local employment laws. 1.2.3. The CITY shall, at its sole cost and expense, conduct criminal background checks for any PHALEN personnel and volunteers prior to their starting their assignment at the MUSEUM and annually thereafter. All PHALEN personnel must execute a waiver allowing the City to conduct said background check and must successfully pass their background checks, as determined by the CITY, in order to be assigned to or perform services at the MUSEUM. Hours of Operation: PHALEN agrees that the MUSEUM shall be open to the public not less than twelve (12) hours per week, except that the MUSEUM will be closed for all holidays recognized by the CITY. The hours the MUSEUM shall be open to the public are specified in Attachment B, and they shall be expanded for special events and to accommodate increased visitation during the summer, to include at least four (4) hours on Saturdays. MUSEUM hours shall be posted for the public on the MUSEUM’S entrance and on the MUSEUM portion of the City website. Museum Entrance Fees and Donations: PHALEN agrees that no fee will be charged as an entrance or other user fees to the MUSEUM. Any monetary donations accepted by PHALEN, as the Director/Curator of the MUSEUM, shall be deposited into the Museum Trust Account as managed by the Friends of the West Chicago City Museum (hereinafter “FRIENDS”), a 501(c)(3) organization, whose sole purpose is to support the MUSEUM and its mission through fundraising. Furnishings and Equipment: For the purposes of operating the MUSEUM and otherwise carrying out its responsibilities under this AGREEMENT, PHALEN may utilize CITY’S existing furniture (e.g., desks, chairs, tables, etc.) and equipment (e.g. computer hardware, copier, fax, microfilm, scanner, software, telephones, etc.) presently at the MUSEUM. PHALEN shall exercise reasonable care and shall be ===== PDF PAGE 12 ===== [Extraction: OCR (rendered-page OCR)] 1.6 1.7 responsible for protecting and presenting said furniture and equipment. CITY shall be responsible for the maintenance agreements for all equipment (e.g. copier, two computers, microfilm reader and software). CITY shall be responsible for the replacement of said furniture and equipment when needed as solely determined by the CITY. Requests for furniture and equipment replacement, and for any software additions or upgrades, must be made in writing by PHALEN by October 1* of each year for purchase in the subsequent fiscal year, notwithstanding an emergency, and approved by the CITY in writing prior to the purchase. 1.5.1 CITY shall continue to maintain MUSEUM computer files on a server and provide technical support, to the extent maintenance and support is currently provided. 1.5.2 PHALEN shall promptly report in writing to the Director of Community Development and the current City staff member as applicable, any problems with the condition and/or operation of any furniture or furnishings. PHALEN shall promptly report in writing to the Director of Community Development, the Director of Administrative Services and the IT Manager, any problems with the condition and/or operation of equipment, which should include all requests for equipment maintenance or repair. 1.5.3. PHALEN shall not add any software products, upgrades, applications or make any other changes to computer equipment without prior written authorization of the CITY. Operating Supplies: PHALEN shall provide, at its own cost and expense, all necessary office and museum-related supplies needed in order to provide the required services under the AGREEMENT. Custodial Services, Facility Maintenance, Security and Utilities: CITY shall continue to provide custodial services, building maintenance, ordinary utilities, security services and capital improvements as needed and as determined by the CITY for all four buildings comprising the MUSEUM. 1.7.1. PHALEN shall notify the CITY of any building maintenance issues that arise. CITY shall use its best efforts to timely notify PHALEN of any work that is done to remedy any building maintenance issues. 1.7.2 City, or PHALEN if designated in writing and with at least seven (7) days notice, shall be responsible for the completion of the monthly maintenance and safety checks as required by the CITY by the 5" of each month and shall immediately thereafter transmit the required documentation to the Facilities Management Superintendent. Any and all issues that arise out of these checks must be reported to PHALEN within five (5) business days of completion. PHALEN shall have five (5) business days to remedy any violations. ===== PDF PAGE 13 ===== [Extraction: OCR (rendered-page OCR)] 1.8 h9 1.10 1.11 1.12 Other City Services: The CITY shall allow PHALEN, for purposes of operating the MUSEUM and otherwise carrying out its responsibilities under this AGREEMENT, to have MUSEUM information uploaded to the CITY website; to use the GIS; and to provide the CITY marketing materials and information to publicize the MUSEUM. PHALEN may also use certain equipment at City Hall including the copier, postage meter and folding machine. Any additional requests for CITY services or to use CITY equipment shall be made in writing to the CITY. PHALEN shall not use said outlets for any use not approved by the CITY. Additional Alterations: PHALEN shall not, without the prior written consent of the CITY, make any alterations, improvements or additions to the MUSEUM buildings. Such alterations shall be requested by PHALEN in writing. The CITY’S refusal to give said consent shall be conclusive. The CITY has the sole authority to give consent to any non-structural changes, including, but not limited to installation of shelving units and modification existing fixtures. It shall be PHALEN’S responsibility to provide assurance that all improvements are consistent with the MUSEUM building’s status on the National Register of Historic Places. 1.9.1 With prior written approval of the CITY, PHALEN may make agreed upon alterations using volunteer or paid labor of choice. The CITY is not responsible for any costs associated with PHALEN’s election to do so and the alterations, improvements or additions done to the MUSEUM buildings. Right of Access: CITY shall be entitled to access to the MUSEUM twenty-four (24) hours a day, without prior notice. CITY staff and agents will record all after-hours building entries by electronic access reporting or on a sign-in tracker at MUSEUM backdoor. Right of Use: CITY shall be entitled to use MUSEUM facilities for other CITY uses provided twenty-four (24) hours’ written notice has been provided to and acknowledged by PHALEN, except in the case of emergencies. PHALEN shall retain the right to object to any Right of Use request by CITY solely for conflicts arising from scheduling or concurrent programming, except in the case of emergencies. Such objection shall not be unreasonably given. CITY shall retain the final say in Right of Use. Fundraising Board: CITY and PHALEN hereby acknowledge that the FRIENDS was established in 2005 to support the MUSEUM through fundraising efforts. The FRIENDS is not a third-party beneficiary to this AGREEMENT. 1.12.1 CITY and PHALEN acknowledge that the purpose of the FRIENDS is fundraising for the MUSEUM. CITY and PHALEN agree that it is neither the intent of this AGREEMENT to grant the FRIENDS any authority over PHALEN as it relates to the MUSEUM’S operations and staff, nor any ability to direct or decide the programming or operations of the MUSEUM, ===== PDF PAGE 14 ===== [Extraction: OCR (rendered-page OCR)] which shall be at the sole discretion of PHALEN and consistent with this AGREEMENT. 1.12.2 CITY and PHALEN acknowledge that the FRJENDS is a 501(c)3 not-for profit corporation and operates independently through its bylaws. 1.12.3. CITY and PHALEN acknowledge that the FRIENDS holds monies that are generated through its own activities and that the MUSEUM, CITY and PHALEN have no control over such monies. 1.12.4 CITY and PHALEN acknowledge that the FRJENDS holds monies that are raised through MUSEUM activities and are held in trust for the MUSEUM and its operations in an account separate from the account described in 1.12.3. The MUSEUM, under PHALEN'S direction, shall account to the FRIENDS and the CITY (the latter only as it relates to monies spent on facility improvements) how these monies are utilized. ARTICLE II. OPERATING FEE AND REPORTING 2 N NO l License Granted: CITY agrees to provide PHALEN an exclusive, non-transferable license to occupy and utilize the space of the MUSEUM, as set forth in this AGREEMENT, at no cost. Operating Fee: For a period of two (2) years beginning January 1, 2019, the CITY shall compensate PHALEN with an annual Operating Fee of eighty eight thousand two hundred and 00/1 00 dollars ($88,200.00) for operating the MUSEUM and otherwise carrying out its responsibilities under this AGREEMENT. CITY agrees to pay PHALEN in twelve (12) equal monthly installments of seven thousand three hundred fifty dollars ($7,350.00). For purposes of payment, PHALEN shall submit to the CITY an invoice that shall be e-mailed to the CITY no later than six (6) business days prior to the date of the first City Council meeting of each month. Payment to PHALEN shall be made following approval by the City Council. PHALEN agrees to timely deposit, within thirty (30) days of check issue date, all checks issued by the City that are made payable to PHALEN or to People Made Visible. PHALEN agrees to reimburse the CITY for any and all bank fees that are associated with the replacement of lost or stale-dated checks as a result of PHALEN'S failure to timely deposit such checks. 2.2.1 Should one of the parties wish to create a successor agreement, including altering the amount of the operating fee, written notice must be provided to the other patty at least ninety (90) days prior to the expiration of the then currentterm. 2.2.2 Should the agreement be terminated early, CITY shall not be obligated for any further payments (for the remainder of the contract) to PHALEN. ===== PDF PAGE 15 ===== [Extraction: OCR (rendered-page OCR)] 2.3. | PHALEN shall provide quarterly reports, for each calendar year quarter, to the CITY or before the last day of January, April, July and October, beginning in January 2019. The format of said reports shall be as may be mutually agreed upon by CITY and PHALEN the content shall include, but is not limited to, the following: 2.3.1 PHALEN shall provide reports to CITY regarding the number of visitors to MUSEUM exhibits, participants in educational programs, and attendance at events as well as its progress toward achieving the Goals detailed in Attachment B. 2.3.2 PHALEN shall provide reports to CITY regarding revenues from donations, educational programs and events. 2.3.3. PHALEN shall provide reports to CITY detailing all expenditures made from the Operating Fee set forth in Paragraph 2.2, correlating to the suggested budget set forth in Attachment C, which is incorporated into this AGREEMENT by reference. 2.4 PHALEN shall annually make a presentation to the applicable Standing Committee of the City Council during the first calendar quarter of each year, reporting on the operations from the past year. 2.5 The Director of Community Development will be responsible for AGREEMENT oversight, receiving the quarterly reports from PHALEN, and serving as the primary CITY contact for PHALEN. ARTICLE Ill. COLLECTIONS 3.1 Collection Ownership: CITY shall retain its ownership of the Museum Collection as the holder of the historic collection in the public trust. 3.2 Collection Use: PHALEN shall be given use of the Museum Collection to fulfill its obligations under this AGREEMENT. PHALEN shall act within the current policies of the MUSEUM, as enumerated in the MUSEUM’S Collection Policy set forth in Attachment D, which is incorporated into this AGREEMENT by reference. PHALEN shall utilize the Museum Collection to generate revenues through programming, research fees and other activities that further the mission of the MUSEUM. Fees generated will be held in the MUSEUM trust account supervised by the FRIENDS. Revenues collected shall be included in reporting as stated in Paragraph 2.3.2. 3.3 Collection Care: CITY shall have the following responsibilities in connection with the maintenance of the Museum Collection: 3.3.1. CITY shall continue to insure the Museum Collection against loss or damage. PHALEN shall assist the CITY in all ways needed to comply with ===== PDF PAGE 16 ===== [Extraction: OCR (rendered-page OCR)] insurance requirements. 3.3.2 CITY shall provide adequate space for the storage and care of the Museum Collection, currently accomplished through the Museum Off-Site Storage facility located at 126 McConnell Street. CITY shall provide PHALEN with one-hundred twenty (120) days notice of any changes to be made in off-site storage of the Museum Collection and a proposed plan for adequate replacement of Collection storage that is consistent with the policies and guidelines of the American Alliance of Museums (www.aam-us.org). ARTICLE IV. LIABILITY AND RISK MANAGEMENT 4.1 4.2 4.3 44 Indemnification /Hold Harmless Provision: To the fullest extent permitted by law, PHALEN hereby agrees to defend, indemnify and hold harmless the CITY, its officials, agents and employees, against all injuries, deaths, loss, damages, claims, patent claims, suits, liabilities, judgments, costs and expenses (including attorneys fees), which may in anywise accrue against the CITY, its officials, agents and employees, arising in whole or in part or in consequence of the performance of this work by PHALEN, its employees, subcontractors or volunteers, or which may in anywise result therefore, except that arising out of the sole legal cause of the CITY, its employees or agents, PHALEN shall at its own expense, appear, defend and pay all charges of attorneys and all costs and other expenses arising therefore or incurred in connections therewith, and, if any judgment shall be rendered against the CITY, its officials, employees and agents, in any such action, PHALEN shall, at its own expense, satisfy and discharge the same. Exceptions to Indemnification: CITY shall maintain, hold and be obligated to hold Comprehensive General Liability Insurance on the MUSEUM, its guests, visitors, volunteers and program participants. PHALEN shall provide the City with a list of active volunteers by the fifth day of each month, and PHALEN shall be responsible for obtaining executed hold harmless waivers for all volunteers that comply with current CITY policy. Prior to the performance of service by volunteers, PHALEN shall provide hold harmless waivers to CITY for any and all active volunteers. Survival of Indemnification: The indemnification described above shall not be limited by reason of the enumeration of any insurance coverage herein provided, and it shall survive the termination of this AGREEMENT. Default: A Party shall be in default if that party breaches a material term of this Agreement. However, no party shall be in default of its performance of its obligations under this Agreement unless it shall have been provided thirty (30) days’ written notice specifically setting forth the alleged default and an opportunity to cure the same. Defaults shall be cured within seven (7) calendar days of receipt of said notice. In the event of default, either party may pursue such remedies as a result thereof as are available at law or equity. ===== PDF PAGE 17 ===== [Extraction: OCR (rendered-page OCR)] 4.5 Insurance: PHALEN shall provide the CITY with an original Certificate of Insurance for the term of this Agreement for General Liability: $1,000,000 combined single limit per occurrence for bodily injury and property damage and $1,000,000 per occurrence for personal injury. The general aggregate shall be twice the required occurrence limit. Minimum General Aggregate shall be no less than $2,000,000, or a project/contract specific aggregate of $1,000,000. Policy is to contain: the CITY, its officials, employees, agents and volunteers covered as additional insured’s as respects to liability arising out of PHALEN’S work including activities performed by or on behalf of PHALEN. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officials, employees, agents and volunteers. PHALEN’S coverage shall be primary and non-contributory as respects the CITY, its officials, agents, employees and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees, agents and volunteers shall be in excess of PHALEN’S insurance and shall not contribute with it. The Certificate shall also list the CITY as loss payee with CITY named as cancellation notice recipient. PHALEN shall furnish the City with an original certificate of insurance naming the City, its officials, employees, agents and volunteers as additional insureds, and with original endorsements affecting coverage required by this clause. The certificate and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. If applicable, PHALEN shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Business Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. PHALEN shall also provide Workers’ Compensation coverage with statutory limits and Employers’ Liability limits of $500,000 per accident should PHALEN have any employees. If PHALEN should have any employees, PHALEN shall agree to waive all rights of subrogation against the City, its officials, employees, agents and volunteers for losses arising from work performed by PHALEN for the City. 4.6 Reporting Requirements: PHALEN shall follow policies and requirements of the CITY and IRMA regarding reporting of accidents or other incidents associated with potential liability at the MUSEUM, and shall report accidents and/or injuries to the Director of Community Development within twenty-four (24) hours of the incident. ARTICLE V. TERM AND TERMINATION OF AGREEMENT 5.1 Term. This AGREEMENT shall become effective on January 1, 2019 and may be terminated with cause upon immediate notice or without cause, upon ninety (90) days ===== PDF PAGE 18 ===== [Extraction: OCR (rendered-page OCR)] prior written notice to the other party. 5.2 Suitable Replacement: If PHALEN elects to terminate this AGREEMENT, PHALEN shall be responsible for selecting and recommending a suitable replacement candidate. This recommendation shall not be binding in any way on the CITY. 5.3 Automatic Renewal: Beginning on January 1, 2021 and the annual anniversary thereafter, unless either party elects to terminate this AGREEMENT as defined in Paragraph 5.1 or provides notice to renegotiate as defined in Paragraph 2.2.1, this AGREEMENT shall automatically renew for an additional one (1) year. 5.4 Surrender of Possession: Upon the expiration of the Term or upon the termination of PHALEN’S right of possession, PHALEN shall forthwith surrender the premises of the MUSEUM, as described in Article I, to the CITY in good order, repair and condition, ordinary wear and tear excepted. Any interest of PHALEN in the alterations, improvements, and additions to the MUSEUM (including without limitation all carpeting or floor covering) made or paid for by CITY or PHALEN, excluding any of the PHALEN’S personal property, shall, without compensation to PHALEN, become CITY’S property at the termination of this AGREEMENT by lapse of time or otherwise, and such alterations, improvements and additions if they are to be relinquished shall be relinquished to CITY in good condition, ordinary wear and tear excepted. If PHALEN holds over after said date, it shall be liable to the CITY in the amount of two hundred dollars ($200.00) per day for every day or portion thereof that remains. 5.5 Surrender of Funds: If this AGREEMENT is terminated early by either party or at the end of the AGREEMENT term, PHALEN shall provide an accounting of any monies provided by the CITY but not yet expended. PHALEN shall remit these funds, less all encumbrances including PHALEN’S fees, within thirty (30) days of the termination date of this AGREEMENT. If PHALEN holds over after said date, it shall be liable to the CITY in the amount of two hundred dollars ($200.00) per day or portion thereof that remains. ARTICLE VI. GENERAL PROVISIONS 6.1 Independent Contractors: The provisions of this AGREEMENT are neither intended to create nor shall any be deemed or to be construed by the parties to create any relationship between the parties hereto other than that of independent entities contracting with each other solely for the purpose of effecting the provisions of this AGREEMENT. 6.1.1 PHALEN shall not be entitled to participate in any plans, arrangements, or distributions by the CITY pertaining to or in connection with any pension, insurance, or similar benefits for CITY employees. In addition, the CITY shall have no responsibility for withholding income tax, social security tax, or unemployment insurance from the compensation paid to PHALEN. PHALEN’S compensation shall be reported on IRS Form 1099, or such ===== PDF PAGE 19 ===== [Extraction: OCR (rendered-page OCR)] 6.2 6.3 6.4 6.5 6.6 successor and/or additional forms as may be required from time to time by the United States Internal Revenue Service. 6.1.2 PHALEN is retained by the CITY only for the purpose and to the extent set forth in this AGREEMENT, and its relation to the CITY during the period or periods of this AGREEMENT and services hereunder, shall be that of an independent contractor, and it shall not be authorized to act as agent, employee, servant or officer of the CITY. Sara A. Phalen, sole shareholder of PHALEN, shall be free to dispose of such portion of her time, energy, and skill during such hours as she is not performing services for the CITY in such manner as she sees fit and to such persons, firms and corporations as she sees advisable. 6.1.3 PHALEN shall provide a W-9 form to the City as required for independent contractors. Entire Agreement: Modification: _ This AGREEMENT contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements, oral or written, and all other communications between the parties relating to such subject matter. This AGREEMENT may not be amended or modified except by mutual written agreement. Compliance with Applicable Law: Each party agrees to comply with all applicable local, state and federal law. Governing Law and Jurisdiction: This AGREEMENT shall be construed in accordance with the laws of the State of Illinois. The parties agree that the exclusive venue for resolving any disputes arising from or under the terms of this AGREEMENT shall be in the 18" Judicial Circuit Court of DuPage County, Illinois. Partial Invalidity: If any provision of this AGREEMENT is prohibited by any applicable law or court decree, said prohibition shall not invalidate or affect the remaining provisions of this Agreement. Notices: All notices hereunder by either party to the other shall be in writing, delivered personally, by certified or registered mail, return receipt requested, or by Federal Express or Express Mail, and shall be deemed to have been duly given when delivered personally as follows: If to PHALEN: Phalen Consulting, INC c/o Sara A. Phalen 787 Hickory Lane West Chicago, Illinois 60185 10 ===== PDF PAGE 20 ===== [Extraction: OCR (rendered-page OCR)] If to the CITY: City of West Chicago 475 Main Street West Chicago, Illinois 60185 Attention: Michael Guttman, City Administrator or to such other persons or places as either party may from time to time designate by written notice to the other. 6.7 Waiver: A waiver by either party of a breach or failure to perform hereunder shall not constitute a waiver of any subsequent breach or failure. 6.8 Captions: The captions contained herein are used solely for convenience and shall not be deemed to define or limit the provisions of this AGREEMENT. 6.9 Assignment; Binding Effect: CITY shall not assign or transfer, in whole or in part, this AGREEMENT or any of CITY’S rights, duties or obligations under this AGREEMENT without the prior written consent of PHALEN, and any assignment or transfer by CITY without such consent shall be null and void. This AGREEMENT shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, representatives, successors and permitted assigns. 6.9.1 PHALEN shall not assign or transfer, in whole or in part, this AGREEMENT or any of PHALEN’S rights, duties or obligations under this AGREEMENT without the prior written consent of the CITY, and any assignment or transfer by PHALEN without such consent shall be null and void. This AGREEMENT shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, representatives, successors and permitted assigns. IN WITNESS WHEREOPF, the parties hereto have executed this AGREEMENT as of the day and year first written above. For: For: City ofWest Chicag Phalen Consulting, Inc. Ruben Pineda, Mayor Jw Oct Date February 4 2014 Date February 4 2014 ys, ry, 11 ===== PDF PAGE 21 ===== [Extraction: OCR (rendered-page OCR)] Attachment A Buildings Comprising the Museum The following four buildings, collectively described as “MUSEUM,” will be governed under this AGREEMENT. All of the following addresses are located in West Chicago, Illinois. 1.) West Chicago City Museum, 132 Main Street - utilized as a public gallery space, limited MUSEUM Collection storage, and offices; 2.) Museum Off-site Storage Facility 126 McConnell Street - utilized as a storage facility for the MUSEUM Collection; 3.) CB&Q Depot, 134 Tumer Court - building of historic significance being utilized for educational programming; and 4.) Sesquicentennial Display Building, 424 Main Street - display building showcasing railroad engine model. 12 ===== PDF PAGE 22 ===== [Extraction: OCR (rendered-page OCR)] Attachment B Responsibilities of Director/Curator and Institutional Goals Director/Curator will oversee the management of the museum collection, archival materials and objects, including acquisition, preservation and exhibition of items. Provide leadership, coordination and supervision for support staff and volunteers. Average 25 hours of work a week. Education- Responsible for the development, planning, coordination, presentation, and scheduling of historical education programs which would include: e Create materials and workshops for teachers to use as learning aids e Teach lessons to students at schools e Conduct field trips e Work with school teachers, scout leaders, and other community resources to develop, implement, and evaluate existing and new programs which meet each group’s specific needs —Annual Goal: 6 in school programs during school year; 4 in museum group tours Organize the Summer Passport Program e Prepare Passport page for museum and additional advertising page for Depot open days and other events and distribute Passport e Prepare Passport worksheet for visitors to use in museum e Collect passports turned in and provide certificates —Goal: Attract 75 additional visitors to the museum and community through the program, the majority of which from out of town Exhibits/Displays e Present and exhibit variety of collection for the public to readily view in the museum and in at least two community locations annually e Research and create new displays e Enhance current displays — Annual Goal: Present at least one new large exhibit — Annual Goal: Enhance the exhibit in the CB&Q Depot which is open to the public twelve Saturdays during the summer months. —Annual Goal: During FY2019 and FY2020 design and erect two outdoor sign boards to attract historic tourism — Accessibility: Maintain museum open gallery hours 12 hours a week during the winter- Thursdays, Fridays from 12-4pm January-February; 16 hours a week during the remainder of the year- Saturdays from 12-4 March — December Volunteers e Recruit, train, and schedule —Monthly goal: utilize volunteers in a variety of areas of the museum for 30 hours a month 13 ===== PDF PAGE 23 ===== [Extraction: OCR (rendered-page OCR)] Building Maintenance Work with the CITY on buildings’ maintenance, upgrades and repairs —Annual 2019 goal: Work with Public Works Department and Community Development Department on assessing building repairs, including but not limited to the roof of the museum. Collection Maintain records and accession all new artifact donations Maintain collection database Properly store or display new artifacts Continue progress on full museum collection inventory e Work towards digitization of museum collection — Annual goal: utilize support staff to reduce backlog of artifact accessioning by 50% each year, with the long-term goal of resolving backlog over the next two years — Annual goal: processing at least 75% of the temporary receipts received for item donations —Annual goal: digitizing 10% of the collection during inventory process Collections Policy e Update Collections Policy (Attachment D) to identify operation of the City Museum by an independent contractor and not by City employees. This includes eliminating references to “registrar”, “employees”, “staff” and other terms referring to City employment in Attachment D, which is a policy previously approved by the CITY. e Annual Goal: Update Collections Policy (attachment D) to provide for collection donations that are “bor digitally” and donated to the City Museum in digital formats. A plan for proper digital storage shall be drafted by PHALEN for CITY review. Research Library e Maintain the Research Library e Assist visitors researching topics and supervise researchers using museum materials —Monthly goal: Serve 10 researchers a month requesting various local history and genealogical information — Annual goal: process new items into research library Communications e Assist in preparing annual budget and project cost estimates concerning the museum and informing CITY as to amounts that should be included in the upcoming budget. e Participate in the newsletter advisory group, providing written material on MUSEUM activities. 14 ===== PDF PAGE 24 ===== [Extraction: OCR (rendered-page OCR)] e Send press releases to newspapers, media, etc. to announce new exhibits and programs e Establish communications and good public relations within the community. e Engage with the community through the Friends of the Museum’s social media channels and website Grant Writing for Additional Funding e Work to secure financial support for preservation efforts and museum services e Seek out, apply for, and manage grant funding for educational programs. Programs e Create or schedule programs of a historical nature to attract more visitors e Advertise the programs — Annual goal: 12 programs open to the public Conferences and Workshops e Attend conferences and workshops to stay current on collection preservation and museum best practices e Network with other museum personnel e Attend regional and local meetings Community Events e Participate in city-wide event committees e Participate in city-wide events including, but not limited to, Blooming Fest, Mexican Independence Day, Downtown Trick or Treat, Frosty Fest e Have a physical presence at community gatherings 15 ===== PDF PAGE 25 ===== [Extraction: OCR (rendered-page OCR)] Attachment C Working Budget The Working Budget outlines the funds to be utilized by PHALEN in the fulfillment of the AGREEMENT. The Working Budget shall not bind expenditures. PHALEN shall have the discretion to utilize the full budgeted amount for MUSEUM’S purposes with the Working Budget as a guide. Category Amount Description Staff $60,000 Contractual director $34,500, Other contract support staff (educational coordinator, collections assistant) $25,500 Training and $1,000 Additional education, conferences tuition Membership $1,500 Membership and dues in professional associations, dues/Subscriptions subscription to professional association publications Printing and $1,100 Printing costs binding Advertising $300 Additional advertising Other contractual | $2,000 Consultant fees. services Computer/office $1,000 General day to day supplies supplies Tools & $300 Everyday maintenance equipment equipment Educational $12,200 — Exhibit costs exhibitions Educational $4,800 Programming costs programming Miscellaneous $1,000 Miscellaneous costs to recognize superior volunteers, exterior commodities decorations (open sign, flower, etc.) Collection $2,000 Archival materials and other collection care items maintenance Additional arts $1,000 Continue museum participation and support in artXposium and programming the West Chicago Artist-in-Residency Program Total | s8s,200 16 ===== PDF PAGE 26 ===== [Extraction: OCR (rendered-page OCR)] Attachment D Collections Policy I. Statement of Mission and Purpose The West Chicago City Museum was established by Ordinance No. 1265 on April 7, 1975 and is a division of the City of West Chicago under the Community Development Department. Our Mission: The West Chicago City Museum is a dynamic history and art center that inspires and involves the community through research, programs and exhibits. The West Chicago City Museum holds its collection in the public trust and exists for the public’s informational and educational benefit. The West Chicago City Museum maintains professional standards as set forth by the American Alliance of Museums (AAM) and plans for the growth, development, care and use of its collections. While the collections are accessible to the public, limitations on use may be made to insure preservation of the collection. Where in Attachment D reference is made to Museum Director, it shall also mean Museum employees and volunteers, except where otherwise noted or where the meaning is limited to the role of the Museum Director. II. Scope of Collection The primary focus of the Museum’s collection is the growth and development of the West Chicago community, from pre-settlement (before 1830) continuing to the present. The predominant ethnic groups and their patterns of immigration will be actively collected. Railroad history as it relates to the settlement and growth of West Chicago will be a secondary collection. The Museum will collect materials relating directly to the past and present network of railroads passing through West Chicago. Due to storage constraints, railroad equipment will be collected only if in good or excellent condition. Materials representative of nineteenth and twentieth century rural and community life in northern Illinois will be selectively collected. The Collections Plan, incorporated by reference, will direct which items will be considered for the permanent collection based on criteria determined through the study of objects already in the collection and identified collection gaps. III. Collection Objectives The Museum will collect materials which support its purpose, and enhance the present collections. Materials collected will be for use in exhibition, education or research. There are 2 types of collections as well as reference materials. A. Permanent Collections: primary collection comprised of original or unique artifacts or documents of high quality. These are to be accessioned (described, assigned and marked with a unique number) into the permanent Museum holdings. 17 ===== PDF PAGE 27 ===== [Extraction: OCR (rendered-page OCR)] B. Education Collection: Non-accessioned items which may be reproductions or originals of lower quality, or any expendable material intended for use in educational programs or used to support exhibits. These items are to be tracked through object numbering but are not accessioned. IV. Acquisition A. Definition: Acquisition is the process of obtaining complete and total ownership and physical possession of object(s). Each acquisition places demands on the Museum’s resources. B. Criteria: Materials must meet the following criteria before being acquired by the Museum. 1) Items shall be relevant to and consistent with the purpose and activities of the Museum. 2) The Museum shall be able to care for items according to professionally accepted museum standards, and make them accessible as preservation considerations permit. For example, the special storage requirements of items of excessive size must be considered. 3) Title to all objects acquired shall be free and clear, without restriction to use or future disposition. 4) Materials must, if possible, have provenance documented. 5) All moral, legal and ethical implications shall be considered. Any exceptions to the above criteria must have City’s written approval. C. Procedure for Acquisition: The Museum has the authority to acquire materials for the collection within the limits of the approved budget. The Museum director has the authority to accept property for the collections. A bill of sale or similar record will be kept to document new acquisitions obtained by purchase. The formal process of accepting materials into the permanent collection is known as accessioning. A deed of gift must be signed to document the transfer of ownership of objects acquired by gift or exchange. All donations to the Museum are tax deductible to the full extent of the law. Gifts to the Museum will be acknowledged by letter in a prompt manner by the Museum Director. Permanent records shall be maintained for all Museum acquisitions in accordance with professional museum standards. All accession records and files will be stored and handled with proper care. Permanent registration records will be on acid-free paper and a duplicate set will be maintained off-site. 18 ===== PDF PAGE 28 ===== [Extraction: OCR (rendered-page OCR)] In compliance with current federal income tax regulations, the Museum Director is prohibited from providing the donor with appraisal services. The Museum Director may, however, recommend qualified appraisers. The Museum Director may attempt to identify an item brought in by the public and deposited no longer than 30 days. After notification items left longer than 30 days will be considered abandoned property, and as such are subject to state law (Public Act 90-0604, http://www. ilga.gov/legislation/publicacts/pubact90/acts/90- 0604. html). D. Means of Acquisition: Materials shall be acquired by purchase, commission, bequest, gift, exchange, field collection, abandonment, or any other transaction whereby title to the object passes to the Museum and the object becomes part of its collections. No materials or objects shall be acquired which are known to have been illegally collected in the U. S. contrary to state law, federal law, regulation or treaty. V. Deaccession A. Definition: Deaccession is the process of removing accessioned material from the Museum Collection permanently. The deaccession process will be carried out in a conscientious manner, with the Museum Director exercising care and thorough deliberation. . Criteria: Museum materials considered for deaccession must meet at least one of the following criteria. 1) The material is not within the scope of the Museum’s acquisition policy. 2) The material is a duplicate. 3) The material lacks physical integrity. 4) The material is in a state of deterioration so as to be useless. 5) The material can no longer be preserved or properly stored by the Museum. 6) The material has failed to retain its identity or authenticity, or has been lost or stolen, and remains lost for longer than 5 years. 7) The material is no longer useable for Museum purposes, or has inadvertently been accessioned twice. . Procedure for Deaccession: The Museum Director may recommend material for deaccession if one or more criteria for deaccession have been met. All materials proposed for deaccession will undergo a careful inspection of the provenance of the material, considering its source, reasons for deaccession, and recommended means of disposal. The Museum Director will recommend or disapprove the deaccession, and 19 ===== PDF PAGE 29 ===== [Extraction: OCR (rendered-page OCR)] VI. Loans will in writing designate the means of disposal. After presentation of the proposed deaccession(s) by the Museum Director to the Public Affairs Committee, the Committee shall either reject the proposed deaccession(s) or recommend the deaccession(s) to the City Council. The City Council shall, with that advice and consent, approve or disapprove of the deaccessioned materials. Means of Disposal: 1) Priority will be given to placing deaccessioned material of a research nature in an institution where it will be accessible to researchers. 2) Materials may be sold at a public or private auction or directly to a private party. 3) Materials may be exchanged for other materials needed by the Museum for its collections, if they are within the scope of the Museum’s acquisition policy. 4) Discard 5) Transfer to the Museum’s non-accessioned collection. . Ethics: There will be no sale, gift or transfer of materials to the Museum Director or employees, City of West Chicago employees, City Council members or their immediate family or representatives (unless those materials were available through a disposal process totally public in nature.) Proceeds: All proceeds obtained from the deaccession of Museum materials will be used towards collection acquisitions or collection conservation. . Public Disclosure: All materials subject to written donor restrictions that have been agreed upon by the Museum and the donor shall not be deaccessioned until the Museum Director has made an effort to comply with the restrictions. A complete record of deaccessions will be maintained. A. Definition: A loan is the temporary transfer of objects from one institution or individual to another without transfer of ownership. Loans to the Museum and from the Museum are made by means of a loan agreement. B. Period of Loan: Both incoming and outgoing loans will be made for a specified period, no longer than 12 months. Loans may be renewed for an additional specified period. No indefinite or long term loans are to be made. C. Outgoing Loans: Loans are made to other museums, historical societies, libraries or other organizations, which meet all conditions of the loan agreement by approval of the Museum Director. Loans are made only for educational, cultural or scholarly 20 ===== PDF PAGE 30 ===== [Extraction: OCR (rendered-page OCR)] purposes, not for private profit-making interests. Loans are to be tracked on the Outgoing Loan Application Form and updated on the City’s shared computer drive. D. Incoming Loans: Items may be borrowed from any appropriate owner by approval of the Museum Director. Lenders will be acknowledged with proper credit. Borrowed items may be photographed or reproduced for exhibit publicity. Loans are to be tracked on the Incoming Loan Application Form and updated on the City’s shared computer drive. E. Unclaimed Loans: Loans to the Museum that are unclaimed sixty days after the expiration of the loan period and proper notification to lender, shall be considered abandoned property and as such subject to state law (Public Act 90-0604). The museum may begin procedures to accession or dispose of the objects. F. Care: It is expected that the level of care given to objects on loan to the Museum will be the same or greater than that given to objects within its collections. A condition report will be made by Museum Director for each item borrowed or loaned and noted on the applicable Loan Application. This report will be made at the beginning and end of the loan period. VII. Ethics A. Standards: The Museum Director, staff and volunteers shall conduct themselves in a professional manner in accordance with the standards set forth in the AAM’s Museum Ethics. B. Collecting: From the time of employment, Museum staff and volunteers may not privately collect objects which fall within the Museum collecting scope, thereby competing with the Museum. Should the employee or volunteer purchase an item of potential interest to the Museum, the employee or volunteer must bring it to the attention of the Museum Director. The Museum will have thirty days to purchase the item at the price paid by the employee or volunteer or shall forfeit the right to purchase. C. Deaccession: Objects deaccessioned from the collection shall not be sold, given or transferred to the Museum Director, employees or volunteers, City staff, City Council members or their immediate families or representatives unless disposed of in an entirely public manner. D. Use of Collection: The Museum collection shall not be used for a non-Museum related purpose. E. Personal Gain: The Museum Director shall not use their position with the Museum as a means of obtaining personal gain, unless in an approved manner, for example, performing consultant work for a fee. VIII. Access and Security 21 ===== PDF PAGE 31 ===== [Extraction: OCR (rendered-page OCR)] The Museum Director will aim to provide maximum access to the collection for scholarly and educational uses, while considering the security and conservation of the materials to be used. A. Security: Security of the collection will be a priority of the Museum Director. At least one member of the Museum work force will be present in unsecured exhibit areas of the Museum when visitors are present. B. Research Use: Appointments are required to access materials within the collections. Researchers must utilize collection materials in the presence of Museum Director during regular hours of work. Researchers will follow handling instructions and care guidelines given by the Museum Director, and will complete a Record of Research form. C. Reproduction: Reproduction of Museum materials for profit-making ventures may be considered. The Museum Director must obtain written approval from the City in advance. A licensing agreement must be made with the Museum, and all copyright restrictions must be followed. 22 ===== PDF PAGE 32 ===== [Extraction: OCR (rendered-page OCR)] WEST CHICAGO POLICE DEPARTMENT Colin Fleury The Public Safety Committee tasked Police Department staff with investigating the following points related to the allowance of video machine gaming in establishments with a liquor license and serving food within the City of West Chicago: the number of communities in DuPage County that allow video gaming, the number of machines in each community, the amount of video gaming specific municipal tax revenue, changes in crime rates related video gaming machines and the effects on gambling addiction rates. A mass email was sent to the Chief of every Police Department in DuPage County requesting information related to the data requested by the Committee. Every community in DuPage County that has legalized video gaming responded to the request excluding Darien, for a total of 18. Data was also collected related to establishments in unincorporated DuPage County. None of the responding Department personnel reported any increase in calls for service or notable crime related to establishments which housed video gaming terminals, though there were a few incidents of attempts to burglarize these establishment. Information related to the number of video gaming locations, terminals, amount waged, municipality share and more was located within the Illinois Gaming Board site at: https://www.igb.illinois.gov/VideoReports.aspx . The following table is a summary of the information requested by the Committee and collected by the Gaming Board from June 1 of 2020 through May 31* of 2021: Municipality Location Terminal Net Wager Local Government Count Count Share DuPage Co. 13 69 $1,693,908.70 $84,698.09 Addison 24 128 $6,972,658.75 $348,638.34 Bartlett 17 92 $4,396,112.29 $219,807.24 Batavia 8 40 $1,406,487.67 $70,331.63 Bensenville 65 12 $2,886,092.42 $144,308.11 Bloomingdale 8 34 $1,426,886.63 $71,344.43 Carol Stream 15 85 $4,810,641.61 $240,535.78 Darien 12 63 $3,620,753.81 $181,042.43 ===== PDF PAGE 33 ===== [Extraction: OCR (rendered-page OCR)] Glendale Heights 17 98 $5,132,441.20 $256,654.45 Hanover Park 9 53 $3,189,007.04 $159,450.58 Itasca 5 29 $1,508,460.38 $75,427.35 Lombard 8 41 $903,404.16 $45,170.26 Oak Brook Terrace 16 94 $6,653,332.71 $332,667.08 Roselle 15 83 $4,494,048.78 $224,714.58 St. Charles 18 95 $3,079,408.38 $153,974.61 Villa Park 23 132 $7,551,987.26 $377,603.86 Westmont 19 108 $7,598,893.88 $379,951.29 Willowbrook 4 23 $989,888.85 $49,494.50 Wood Dale 14 75 $2,680,863.68 $134,043.82 Woodridge 8 46 $2,087,811.90 $102,934.89 Due to the COVID-19 crisis, video gaming operations were suspended March 16, 2020 - June 30, 2020 and November 20, 2020 - January 16, 2021. This caused a lack activity for a total of 92 days during this period. Net wager is calculated by subtracting the total amount won from the total amount played by patrons placing wagers on electronic gaming machines. In reference to the rate of gambling addiction rising in communities which allow video gambling, very little information was available. A study into a rise in gambling addiction rates was recently conducted but the results of this study have not been published. According to 1-800 GAMBLER “It is estimated that between 4 and 6 million Americans can be considered problem gamblers” and according to a report in the Sun Times “Experts generally estimate that between 2% and 5% of the population deal with gambling disorder, which would project to about 635,000 people across Illinois, including about 136,000 in Chicago” the Sun Times goes on to report that “Tlinois gambling has changed a lot over that period, especially with a 2019 gambling expansion law that promises to add thousands of slot machines and a handful of new casinos to a state that already offers more places to bet than Las Vegas. There’s now action to be had anywhere a cellphone signal can reach, thanks to the advent of online sports betting, while calls to the state’s gambling disorder hotline have more than doubled over the past two years.” (Chicago Sun Times Feb 6, 2021 and Mar 10, 2021) The University of Illinois Department of Economics in partnership with the Universidad de los Andres School of Government conducted a study in 2017 titled “Can’t stop the One Armed Bandits — The Effects of Access to Gambling on Crime”. It along with the 2018 Referendum results are attached for your information. While employed at the Elgin Police Department for 22 years, I responded to numerous calls for service at gambling establishments, with the majority regarding individuals who had violated ===== PDF PAGE 34 ===== [Extraction: OCR (rendered-page OCR)] “Self-trespass Agreements” which they had violated by entering the riverboat. These Agreements were signed as part of a treatment program to combat their drug addiction. Other common calls were related to underage entrance onto the riverboat, use of fraudulent coins, and alcohol related disturbances. As of August 25, 2021, there are 31 establishments to include parlors, restaurants, bars and gas stations which operate video gaming machines in Elgin but there were no notable calls for service at any of these establishments related to gambling or the gaming machines. ===== PDF PAGE 35 ===== [Extraction: OCR (rendered-page OCR)] Precincts Registered Voters YES Total Votes NO Total Votes Total Votes Cast % Voting YES % Voting NO Wayne 007 650 41 54 95 43.2% 56.8% Wayne 008 611 29 53 82 35.4% 64.6%| Wayne 009 750 0 0 0 0.0% 0.0%| Wayne 035 521 39 65 104 37.5% 62.5% Wayne 036 541 47 53 100 47.0% 53.0% Wayne 037 786 39 190 229 17.0% 83.0% Wayne 039 903 64 144 208 30.8% 69.2% Wayne 043 493 4 6 10 40.0% 60.0% Wayne 047 561 19 53 72 26.4% 73.6% Wayne 048 856 25 64 89 28.1% 71.9% Wayne 056 593 6 3 9 66.7% 33.3% Wayne 067 745 50 87 137 36.5% 63.5% Winfield 001 895 71 137 208 34.1% 65.9% Winfield 003 682 41 84 125 32.8% 67.2% Winfield 005 681 37 148 185 20.0% 80.0% Winfield 008 578 36 57 93 38.7% 61.3% Winfield 009 893 37 79 116 31.9% 68.1% Winfield 011 748 38 36 74 51.4% 48.6% Winfield 012 858 47 106 153 30.7% 69.3% Winfield 013 635 26 64 90 28.9% 71.1% Winfield 017 687 55 142 197 27.9% 72.1% Winfield 019 683 25 148 173 14.5% 85.5% Winfield 023 550 3 6 9 33.3% 66.7% Winfield 032 717 16 33 49 32.7% 67.3% Winfield 035 807 25 46 71 35.2% 64.8% Winfield 037 667 5 24 29 17.2% 82.8% Winfield 039 658 0 0 0 0.0% 0.0% Total: 18,749 825 1,882 2,707 30.5% 69.5%| ===== PDF PAGE 36 ===== [Extraction: OCR (rendered-page OCR)] Can’t Stop the One-Armed Bandits The Effects of Access to Gambling on Crime* Nicolas L. Bottan'!, Andrés Ham?, and Ignacio Sarmiento Barbieri* Department of Economics, University of Illinois 2School of Government, Universidad de los Andes August 2017 Abstract We study the effect of a large increase in access to gambling on crime by exploiting the expansion of video gambling terminals in Illinois since 2012. Even though video gambling was legalized by the State of Illinois, local municipalities were left with the decision whether to allow it within their jurisdiction. The City of Chicago does not allow video gambling, while many adjacent jurisdictions do. We take advantage of this setting along with detailed incident level data on crime for Chicago to examine the effect of access to gambling on crime. We use a difference-in-differences strategy that compares crime in areas that are closer to video gambling establishments with those that are further away along with the timing of video gambling adoption. We find that (i) access to gambling increases property and violent crimes; (ii) these are new crimes rather than displaced incidents; and (iii) the effects seem to be persistent over time. Key words: video gambling, crime, Chicago. JEL Classification: L83, R58. *We would like to thank David Albouy, Dan Bernhardt, Daria Bottan, Micaela Sviatschi, Ricardo Truglia, and seminar participants at the University of Illinois for helpful comments. All remaining errors and omissions are our sole responsibility. tbottan2Q@illinois.edu, a.ham@uniandes.edu.co, and srmntbr2Qillinois.edu. Mail: 214 David Kinley Hall, 1407 W. Gregory, Urbana, IL 61801. ===== PDF PAGE 37 ===== [Extraction: OCR (rendered-page OCR)] 1 Introduction State governments have been moving towards decentralizing gambling activity away from casinos to local establishments such as bars and restaurants through video gambling.’ IIli- nois made this shift in 2012 and quickly surpassed the number of video gambling terminals in Nevada (Ciciora, 2016). People wagered over $14 billion in 2016, which generated over $277 million in state tax revenue for Illinois (equivalent to around 1% of total state tax revenue). Encouraged by the apparent fiscal success of video gambling in Illinois, other states are considering similar legislation. For example, Pennsylvania’s house of represen- tatives recently passed a gambling bill that is similar to that in Illinois (Bill No. 271). Moving towards decentralized gambling changes the nature of access to gambling: instead of being available at a few scattered locations (i.e., casinos), it becomes widely available across the state. However, the potential effects of such a large increase in access to gambling on crime are not well understood. Most of the existing evidence focuses on the effect of casino expansions on crime. This research typically uses county-level variation in casino openings across the US or in Native American tribal areas, finding that casino construction increases crime in the same county (Gazel et al., 2001, Evans and Topoleski, 2002, Grinols and Mustard, 2006, Reece, 2010) and generates some spillovers into neighboring areas (Barthe and Stitt, 2007, Nichols and Tosun, 2017). However, we must be cautious when extrapolating these results to the context of decentralized gambling. Casino construction entails changes other than access to gambling itself. For example, a new casino may generate a positive local labor market shock that may attenuate the potential negative effects on crime. At the same time, casinos may attract more people to the area, increasing the likelihood of crimes occurring. 1This form of gambling is often referred to as “convenience gambling”. Video gambling terminals or video lottery terminals are machines where a player bets on the outcome of a video game (i.e., slots, poker, roulette, etc.). ===== PDF PAGE 38 ===== [Extraction: OCR (rendered-page OCR)] An ideal setting to study the effects of increasing access to gambling on crime would involve randomly placing video gambling terminals in some locations and not in others. In this setting, we could unequivocally examine the effect of access to gambling on crime by comparing how crime changes in areas that are closer to gambling terminals relative to those that are further away. This strategy would not be feasible in the context of casino constructions since their location decisions depend on various factors including local, social, and economic conditions, which may not always be observed by the econometrician. We take advantage of a setting that closely resembles the ideal one: the legalization and expansion of video gambling in Illinois. The Video Gaming Act of Illinois was passed in 2009 and implemented in 2012. The law allows local establishments in possession of a liquor license (mainly bars and restaurants) to install up to five video gambling terminals. Local municipalities can decide whether or not to allow video gambling in their territory. Because of a spat between the Mayor and city Aldermen, Chicago maintains a ban on gambling since 1993. However, several municipalities directly adjacent to Chicago have adopted video gambling, thus greatly increasing access to gambling in some areas of Chicago. In this paper, we study how access to gambling affects crime by taking advantage of this setting. We combine data on establishments that adopted video gambling in the areas neighboring Chicago with monthly incident-level data on crime from Chicago. We use a difference-in-differences strategy that compares crime in census block groups of Chicago that are closer to video gambling establishments with those that are further away along with the timing of video gambling adoption. Our identification strategy relies on the fact that the decision of allowing gambling was independent from these areas in Chicago. Therefore, in absence of the Video Gaming Act, crime in areas relatively closer to video gambling establishments should have evolved similarly to areas further away. We test this assumption and find that crime was evolving similarly in areas closer and further away from video gambling establishments before it was legalized. ===== PDF PAGE 39 ===== [Extraction: OCR (rendered-page OCR)] We find that access to video gambling leads to a statistically significant increase in property and violent crimes in Chicago. On average, being near at least one video gambling establishment is associated with a 6.7% and 7.5% increase in property and violent crime. These estimates account for potential confounders, including access to riverboat casinos, community area specific trends, and demographic controls. These estimates suggest that since the time video gambling was adopted in September 2012 until the last month in our data (July 2016), video gambling created around 4,100 and 1,450 additional property and violent crimes in Chicago. Our results suggest that video gambling is creating new crimes rather than displacing existing crimes. The effects of access to video gambling are strongest in the block groups closest to video gambling establishments. The effects decrease in distance, becoming zero after moving three block groups away, and remain at zero thereafter. Additionally, we show that video gambling also increased a type of crime that is independent of displacement: domestic crimes. One concern is that video gambling could have increased the availability of bars. There is evidence suggesting that increasing access to bars can increase crime (Rossow and Norstrom, 2012, Anderson et al., 2017). If this were happening, our estimates could simply be capturing the effect of more bars rather than access to gambling. Using data on all liquor licenses granted in Illinois obtained form the Illinois Liquor Control Committee, we show that the effects of access to video gambling remain unchanged after accounting for changes in access to bars over time. Even though both property and violent crime increase, we find that these effects are mostly driven by property-type crimes: effects of violent crimes mostly driven by robbery, a violent form of property crime. These results suggest that our finding are mostly driven by direct effects of gambling (Grinols and Mustard, 2006) such as problem and pathological gambling (i.e., financial distress) and from increased payoff to crime (i.e., victims carrying ===== PDF PAGE 40 ===== [Extraction: OCR (rendered-page OCR)] more cash for gambling or from winnings). Back of the envelope estimates suggest that in the four years since video gambling was legalized in Illinois, the increase in crime cost Chicago residents approximately $55.5 million, which is orders of magnitude larger than the estimated transfers of State gambling tax revenue to the City. Our paper is related to various strands of literature. It relates to research examining the relationship between gambling and crime. Most of this literature has focused on examining the effect of casino expansions on crime, finding mixed results overall (Grinols and Mustard, 2006, Gazel et al., 2001, Wilson, 2001, Reece, 2010, Hyclak, 2011, Nichols and Tosun, 2017, Falls and Thompson, 2014, Humphreys and Soebbing, 2014). This is partly due to the fact that casino constructions entail large changes in the affected area. For example, several studies have documented positive effects on the local labor market (Evans and Topoleski, 2002, Humphreys and Marchand, 2013). We contribute to this literature in two ways. First, by focusing on a context where factors other than access to gambling remain mostly unchanged. Second, we study localized effects of access to gambling on crime, rather than aggregate effects at the county-year level. We also contribute to a literature examining effects of the expansion of “sin tax” activi- ties on crime. Recent studies have focused on the effects of legalized prostitution (Ciacci and Sviatschi, 2016), marijuana dispensaries (Chang and Jacobson, 2017), and bars (Rossow and Norstrom, 2012). We contribute to this literature by studying the localized effects of decentralized gambling through the rapid expansion of video gambling terminals — an activity that looks set to grow in several states over the next years. The paper proceeds as follows. Section 2 provides background on gambling in Illinois, showing how access to gambling increased dramatically as a result of the Video Gaming Act. Section 3 describes our data. Section 4 presents our identification strategy, Section 5 describes our results, and Section 6 examines the robustness of our main results. Section 7 provides a brief discussion on the costs and benefits of legalizing video gambling in Chicago. ===== PDF PAGE 41 ===== [Extraction: OCR (rendered-page OCR)] Section 8 concludes the paper. 2 Video Gambling in Illinois Gambling is not new to Illinois. Riverboat casinos were legalized in 1990 through the Riverboat Gambling Act (230 ILCS 10). This made Illinois the second state (after Iowa) to legalize this form of gambling (Grinols, 2004). Gambling activities have been closely regulated in Illinois, which has allowed only 10 casinos to open throughout the State. In 2012, riverboat casinos generated about $350 million in tax revenue for the state and $83 million for municipalities (Illinois Gaming Board, 2016). New spending initiatives have begun to rely on funds from gambling revenue to cover costs. The 2009 Illinois Jobs Now! project was conceived to foster economic activity, invest in infrastructure, and create new jobs in the aftermath of the 2008 financial crisis. This project’s cost was estimated to be $31 billion, of which the state would account for $13 billion or roughly 40%.? Twenty-year bonds financed by fee and tax increases (e.g., increases in vehicle registration fees and alcohol/candy taxes) would mainly cover Illinois’ share. The second largest revenue source would be tax income from video gambling. In 2009, the State passed the Video Gaming Act (230 ILCS 40) that legalized video gambling in any retail location with a valid liquor license and not owned by a horse racing firm or riverboat casino.* Qualifying establishments fill out an online application and must pay a $100 annual license fee. If their request is approved, state-licensed technicians can install between one and five video gambling terminals in the establishment.4 Terminals cannot directly dispense coins, cash, or tokens. Players instead receive vouchers that can ?Remaining funds were to be drawn from state debt and federal and local matching grants. 3Other establishments also qualified for video gambling: licensed fraternal establishments, licensed veteran organizations, and licensed truck stops. 4Video gambling activities are extensively regulated by the State. Manufacturers, distributors, suppliers, operators, and handlers must fulfill a number of requirements, pay fees, and are subject to inspections. 6 ===== PDF PAGE 42 ===== [Extraction: OCR (rendered-page OCR)] be exchanged for cash at the register. A player can wager $2 at most and terminals cannot dispense more than $500 per game played. The total revenue generated by video gambling terminals is divided in three parts: 70% goes to establishments and terminal companies, 25% to the state, and 5% to the municipality. Once implementation of the Video Gaming Act began in September of 2012, adop- tion was fast. Figure 1 plots the number of video gambling establishments over time. Many eligible businesses applied for licenses and typically installed the maximum number of terminals allowed by the law. Almost 25,000 video gambling terminals in about 5,000 establishments were operational by 2016 (Illinois Gaming Board, 2017). This places IIli- nois as the largest video gambling jurisdiction in the world, surpassing Nevada. Video gambling became widespread and convenient to such an extent that revenues and atten- dance at riverboat casinos in Illinois have been in decline since video gambling was adopted (Commission on Government Forecasting and Accountability, 2015). While the Video Gaming Act legalized video gambling across Illinois, each municipality could choose whether to allow video gambling within its administrative limits, if it did not already have an ordinance prohibiting gambling.® Out of 1,475 municipalities, around 12% either opted-out or already had an ordinance that outlawed gambling. The most notable municipality that does not allow video gambling is Chicago. The City of Chicago has had an ordinance prohibiting gambling that dates back to 1993, passed by city Aldermen in opposition to Mayor Daley’s plans to bring casinos to the city (ordinance Title 8, Chapter 8-12). An amendment to this ordinance was proposed in 2012 to allow video gambling (02012-2236), it was finally voted down in May 2015. Even though Chicago has not adopted video gambling, access to gambling has increased dramatically in the city as a result of the Video Gaming Act, notwithstanding that there were a number of riverboat casinos and land-based casinos in neighboring Indiana. This 5The regulations for the referendum may be found in Section 70 of the Video Gaming Act. They require asking constituents: “Shall video gambling be prohibited in [municipality]?” The choices are Yes or No. 7 ===== PDF PAGE 43 ===== [Extraction: OCR (rendered-page OCR)] is driven by many bordering municipalities that do allow video gambling. We plot the minimum travel time from the centroid of each census block group to the nearest casino (Figure 2.a) or video gambling establishment (Figure 2.b). On average, access to gambling increased by over 47% across the city (or 9 minutes). Given existing evidence suggesting that the relationship between gambling and travel time approximates an exponential func- tion (Grinols, 2004), we would expect such a large expansion of access to increase gambling significantly. In order to identify the causal effect of higher access to gambling on crime, we exploit the increase in access to video gambling over time and space, taking advantage of detailed data on crime in Chicago that is unavailable for the rest of Illinois. It is important to note that there are two main potential sources of attenuation bias. First, we are examine a context where gambling was already accessible, though it became dramatically more accessible and widespread with video gambling. Second, the existence of illegal gambling locations within the city of Chicago may also attenuate any potential effects of access to video gambling. For these reasons, our estimates in the following sections should be considered lower bounds of the effects of access to gambling on crime. 3 Data We combine data from two main sources. First, incident-level data on crime from police reports between January 2006 and June 2016 available from the City of Chicago Data Portal. Similar data is not available for cities neighboring Chicago. This information comes from the Chicago Police Department’s Citizen Law Enforcement Analysis and Reporting system. The data set provides the date, time, and location of the crime at the block- level. Each incident is also classified according to the Illinois Uniform Crime Reporting (UCR) code, which in turn follows the Federal Bureau of Investigation’s (FBI) Uniform ===== PDF PAGE 44 ===== [Extraction: OCR (rendered-page OCR)] Crime Reporting guidelines.® We follow the literature and classify incidents into property and violent crimes. In the case of multiple offenses, the incident is classified using the FBI’s UCR Hierarchy Rule.’ This hierarchical classification implies that reports for lower categories will be downward biased.® We aggregate the data and construct a monthly panel of census block groups because it is small enough to provide sufficient geographic variation in access. Recent studies have highlighted the importance of focusing on small geographic areas to study crime (Di Tella and Schargrodsky, 2004, Linden and Rockoff, 2008, Draca et al., 2011, Donohue ct al., 2013, Cui and Walsh, 2015). Additionally, we obtain socio-demographic characteristics at this level to use as controls from the 2000 Census and the 2011-2015 American Community Survey. The demographic data include total population, population density, median age, average household size, percentage of males aged between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of owners. We extrapolate these measures linearly over time and include them as controls to account for any changes in socio-demographic characteristics. Second, monthly data on establishments with video gambling from the Illinois Gaming Board. The data contains the address of the establishment, as well as information on the number of video gambling terminals installed, statistics on volume played, and taxes collected. We geo-coded the location of each establishment and use it to construct our main measure of access to video gambling. We match establishments at the census block group level and classify block groups each month inside of Chicago based on proximity to 6Violent crimes include: homicide, sexual assault, robbery and, aggravated assault and battery; while prop- erty crimes: arson, burglary, larceny and motor vehicle theft. See http://gis.chicagopolice.org/clearmap_ crime_sums/crime_types.html for definitions and descriptions (last access August 17, 2017). 7This rule assigns the highest hierarchy to violent crimes followed by property crimes. It requires that in a multiple offense scenario the incident must be classified with the highest hierarchy. 8The data only contains incidents for which the police responded and completed a case report. The geo- location is approximate and accurate only at the block level. It also contains some missing geo-coordinates. If the address of the incident is present but not the geo-coordinates, we geo-code them to the middle of the block because the last two digits of the address are withheld. We dropped 401 (0.6%) incidents that could not be geo-coded. ===== PDF PAGE 45 ===== [Extraction: OCR (rendered-page OCR)] video gambling using geographic adjacency (e.g., within 1 block is directly adjacent, within 2 blocks is adjacent-to-adjacent, and so on). To maximize power, our main specification will define the main independent variable as the block group being within 3 blocks of a video gambling establishment. However, our estimates are robust to using alternative definitions of access to gambling, including the number of establishments within 3 blocks, and access measures typically used in the trade literature (Harris, 1954, Hanson, 2005) that employ a weighted average of the linear distance (or traveling times) from the block group centroid to each establishment.° 4 Identification Strategy To identify the effects of increasing access to video gambling on crime in Chicago, we exploit variation in the expansion of video gambling by establishments over time, and the fact that some census block groups had greater access than others. Our identification strategy rests on the assumption that closer places have greater access and are more likely to be affected. Figure 3 illustrates our identification. Using this spatial proximity strategy helps account for confounding unobserved neighborhood attributes (Diamond and McQuade, 2016, Linden and Rockoff, 2008). For this reason, we restrict the sample to census block groups that are within 6 blocks at any point in time. This restriction does not play an important role in our results, since they remain robust when including all census block groups in the City of Chicago.!° We employ a difference-in-differences strategy that compares crime in block groups that have greater access to video gambling establishments with blocks that have lower access, °For example, if d;,; is the linear distance (or traveling time) between block group centroid 7 and estab- lishment j, and 1(VG;,z = 1) indicates that establishment j has video gambling in period ¢, then gambling access (GA) is calculated as GA; = a, exp(—1(VG;4 = 1)-d;,;). Results are available in Appendix Table A.3. 10See Appendix Table A.1. 10 ===== PDF PAGE 46 ===== [Extraction: OCR (rendered-page OCR)] before and after establishments near the Chicago border adopted video gambling. Our baseline specification for a given outcome y; (i-e., number of crimes in block group 7 in month-year t) is: Crimei, = a; + B Within 3 blocks;, + f(Riverboats:2) +tir+oXit+O+6i2 (1) where Within 3 blocks; is an indicator that equals one if the block group is within 3 blocks of a video gambling establishment at time ¢t and zero otherwise. a; are block group fixed effects, 6; are month-year fixed effects, and ¢;, is the error term. Our parameter of interest, @, estimates the average difference in crime between blocks that are within 3 blocks of establishments with video gambling relative to those that are further away (4- 6 blocks). Our main identifying assumption is that in absence of video gambling, crime would have evolved similarly in areas that eventually had high access compared to those with low access. In Section 6 we provide evidence suggesting that this assumption is likely to hold. This strategy accounts for a number of potential threats to identification. First, there are a number of riverboat casinos in the greater-Chicago area. During our period of analysis two new riverboat casinos opened, which could potentially bias our results. To account for these potential confounding effects we include f(Riverboats), a quadratic function of the linear distance to the nearest riverboat casino. Second, there could have been unobserved public policies during our period of analysis that could affect crime. For example, if shocks in crime at the neighborhood-level were correlated with the adoption of video gambling, our estimates would be biased. We account for this potential threat by including ty,,, com- munity area-specific time trends. Finally, changes in crime could be driven by underlying changes in the socio-economic conditions of block groups with higher access to gambling. To address this possibility we include X;z, a vector of time-varying demographic controls 11 ===== PDF PAGE 47 ===== [Extraction: OCR (rendered-page OCR)] obtained from the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, per- centage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. Given the count nature of the crime data, we estimate Equation (1) by maximum likelihood using a Poisson regression. Results are similar using other estimators.'! Since errors are expected to be correlated within block groups and access to gambling varies at this level, we cluster our standard errors at the census block level in all our regressions. 5 Results 5.1 Main Results We examine whether greater access to video gambling affects property and violent crime in Chicago. Table 1.a presents our core results using number of property crimes as the dependent variable, while Table 1.b does the same for violent crimes. We begin with a basic specification that does not control for access to riverboat casinos, community area time trends, nor time-varying demographic characteristics in column (1). Results show a statistically significant increase in both property and violent crimes. Our estimates indicate that being within three block groups of at least one video gambling establishment increases property crime by almost 5% (s.e. 0.019) and violent crime by 9% (s.e. 0.021).! These estimates are robust to using alternative specifications. Column (2) presents re- sults after accounting for proximity to Riverboat Casinos. Column (3) includes community area time trends, and column (4) accounts for time-varying demographic characteristics. 11See Appendix Table A.2 for results using Negative Binomial or OLS. 12Given that we estimate non-linear Poisson regressions, estimated coefficients should have a slightly dif ferent interpretation than OLS estimates. However, because the coefficient of interest is attached to a dummy variable and the resulting estimates are small, the coefficient can be interpreted as the percentage change in crime e? —1~ f. 12 ===== PDF PAGE 48 ===== [Extraction: OCR (rendered-page OCR)] Column (5) is our preferred specification that incorporates all the previous controls. The point estimate increases to 6.7% (s.e. 0.018) for property and decreases to 7.5% (s.e. 0.019) for violent crime, though they are not statistically different from the baseline specification (p-value=0.520 and p-value=0.609). Estimates are very similar when using police district or police beat specific time trends, accounting for any heterogeneity in policing strategy.'* These results suggest that access to gambling adds on average 0.28 and 0.10 property and violent crimes per block group each month. In other words, legalizing video gambling has contributed to approximately 4,100 and 1,450 additional property and violent crimes in Chicago since the Video Gaming Act took effect. Unlike some of the state or region-specific casino studies in the US (Gazel et al., 2001, Wilson, 2001, Reece, 2010, Hyclak, 2011, Falls and Thompson, 2014) or the Canadian gambling literature (Arthur et al., 2014, Humphreys and Soebbing, 2014), we do find that greater access to gambling increases crime. Compared to research studying casino openings across the US, our estimates are somewhat lower. Grinols and Mustard (2006) find average rises of 16% in property crime and 20% in violent crime. Evans and Topoleski (2002) find smaller increases when accounting for state-specific time trends, about 10% for both types of crime. However, crime effects due to casino openings are driven by multiple mechanisms, not just gambling itself. For example, part of the increase in crime could be driven mechanically due to an increase in the number of people visiting casino counties. 5.2 Further Results We provide additional evidence that our results are indeed driven by access to video gam- bling and are not spurious. We exploit three different dimensions of our variation in access to gambling: its effects over time, and the availability of video gambling establishments. To explore the effects of access to gambling over time, we conduct an event study 13See Appendix Table A.4. 13 ===== PDF PAGE 49 ===== [Extraction: OCR (rendered-page OCR)] analysis, where we classify block groups in bins of six months with respect to when it first had a gambling establishment within three blocks. Point estimates and 95% confidence intervals are presented in Figure 4. Both property and violent crimes show similar patterns: before becoming exposed to video gambling we do not observe any significant differences in crime between blocks that are within three blocks from gambling establishments compared to those that are further away. This provides suggestive evidence validating our main identifying assumption, that trends evolved similarly before video gambling was adopted. The effect of access to video gambling on crime seems to be persistent. It increases over time and stabilizes after twelve to eighteen months. On average, the medium-run effect on property crime it is 10.1% (s.e. 0.029), while for violent crime is 10.9% (s.e. 0.036). This pattern, where the effects increase at first and stabilize is consistent with a number of explanations. On one hand, it is consistent with the timing and expansion of video gambling establishments described in Figure 1. On the other hand, it could also be consistent with evidence that it takes around a year for individuals to become compulsive video gamblers (Grinols and Mustard, 2006). Finally, we find that effects are also increasing in availability of video gambling es- tablishments. One measure of availability is by volume played at gambling establishments within three blocks. On average, the monthly volume played in establishments within three blocks is $2.8 million. We present results in Figure 5, where we classify block groups within three blocks of gambling establishments by total volume played at those establishments by quartile. Indeed, results suggest that the effects are increasing in volume played as would be expected. At the average volume of playing, property and violent crimes increase by 12.5% (s.e. 0.024) and 10.4% (s.e. 0.030), respectively. We find that results are similar when using several alternative measures of availability (or access) to video gambling: the number of establishments,!+ including volume played or number of establishments as a 14See Appendix Figure A.1. 14 ===== PDF PAGE 50 ===== [Extraction: OCR (rendered-page OCR)] regressor, and using access measures typically used in the trade literature.’ 6 Robustness 6.1 Testing for Differential Trends Identification of the effect of access to gambling on crime depends on the assumption that in absence of video gambling, crimes in high access areas would have evolved similarly to those further away. Though we cannot test this directly, we provide a number of tests that lend support to it. One approach is to create placebo indicators that equal one for a period of time before the unit becomes “treated” (i.e., a lead of the Within three blocks variable). This variable would capture any differences in trends between groups before being exposed to video gambling. We thus estimate Equation (1) and add the placebo variable. Results are presented in Table 2, where in each column we change the time-span of the placebo variable. Column (1) presents our preferred specification results from Table 1, column (2) adds a placebo for one year prior, column (3) does it for 2 years prior and column (4) for 3 years prior. The point estimates on all the placebo coefficients are close to zero and we can reject the null hypothesis that the magnitude of effects of access to gambling and the placebo are equal (the largest p-value is 0.0026). Additionally, the event study figures presented before (Figure 4) tell the same story: there do not seem to be large systematic differences in trends between groups.!© Taken together, the evidence is reassuring that our findings are not driven by differences predating video gambling adoption. 15See Appendix Table A.3. 16The findings are unchanged if we perform the same event study analysis using quarters instead of semesters, although the estimates are more imprecise. 15 ===== PDF PAGE 51 ===== [Extraction: OCR (rendered-page OCR)] 6.2 Proximity to Video Gambling and Displacement Our identification strategy implicitly assumes that access to video gambling increases with geographic proximity to video gambling establishments. Instead of estimating our model using a dummy variable indicating that a block group has at least one video gambling establishment within 3 blocks, we examine effects by block group (i.e., one block away, two, etc.). If our effects were driven by increased access to gambling, we would expect that blocks that are closer to gambling establishments experience a larger increase in crime. We show point estimates and 95% confidence intervals of these estimates by block in Figure 6. Both property and violent crimes display a similar pattern: the effects are largest for the blocks with highest access to gambling (within 1 block), and they decrease as we move away. At a distance of three or four blocks the effects are zero and remain constant at greater distances. For areas within one block of gambling establishments, the average increase in property and violent crime is 13.1% (s.e. 0.038) and 14.4% (s.e. 0.040), respectively. One concern with the interpretation of our results is that access to video gambling is displacing crime within Chicago: shifting criminal activity towards areas closer to gambling establishments. However, there are various results suggesting that our estimates capture new crimes in Chicago rather than displacing existing crime. First, if our effects were driven by displacement, we would expect to find effects decreasing monotonically with distance. However, as shown in Figure 6, point estimates of effects are zero and remain at zero after three or more census block groups away from a video gambling establishment. Second, when including all block groups of Chicago or restricting the sample to block groups ever within 10 blocks of a video gambling establishment we find that point estimates are slightly smaller. Finally, if effects were driven by displacement, then there is a form of crime that should not be affected by it: domestic incidents.’” We replicate our baseline analysis using the 17Besides classifying a crime by type (e.g., homicide, aggravated battery, etc.), the Chicago Police Depart- 16 ===== PDF PAGE 52 ===== [Extraction: OCR (rendered-page OCR)] number of domestic crimes as dependent variable in Table 4. Access to gambling increased the number of domestic crimes by around 3.1% (s.e. 0.018). This is consistent with evidence documenting the effect of emotional cues and family violence. For example, Card and Dahl (2011) find that upset losses increase domestic violence by 10% during the hour after a football game. Our estimates on domestic crime are substantially smaller than the effects on property and violent crime, suggesting that emotional cues may play a smaller role in the context of gambling. 6.3. Access to Bars A potential concern is that the increase in crime may be driven by an increase in access to bars rather than gambling. In 2016, video gambling terminals brought establishments over $5,100 a month on average in revenues.!® This could have had two effects. First, it may encourage new bars to open (or extend the life of existing bars). Given that there is evidence documenting a positive correlation between bars and crime (Rossow and Norstrom, 2012, Anderson et al., 2017), an increase in the number of bars could drive our results. Second, bars located inside Chicago may relocate outside the borders to benefit from video gambling. This could have two opposing effects. On the one hand, the number of local bars can decrease and this could bias our estimates downwards. On the other hand, it could shift people towards the border increasing the likelihood of crimes happening in areas near the border. Our results remain unchanged when accounting for access to bars. We use data on all the liquor licenses granted by the Illinois Liquor Control Committee during the period of ment also notes whether the incident was domestic or not based on the relationship between the victim and the offender. Specifically we focus on violent crimes complemented with simple assault and battery classified as domestic plus offenses against family. We do so to get a domestic violence measure that best fit the definition of the Department of Justice (see https: //www.justice.gov /ovw/domestic-violence) 18Qwn calculations based on data from the Illinois Gaming Board. 17 ===== PDF PAGE 53 ===== [Extraction: OCR (rendered-page OCR)] July 2009 to March 2016.19 We geo-coded all establishments in the greater Chicago region and constructed a monthly panel at the census block group level containing the number of active liquor licenses. From this data we generate two variables: the number of bars in each block group and the number of bars within three blocks. Results are presented in Table 3, where the first two column replicates our original analysis with and without community area trends, restricting the sample to the time pe- riod for which we have data on liquor licenses. Column (3) adds the number of bars (in hundreds) in same block as a control, column (4) adds number of bars (in hundreds) within three blocks as a control, column (5) adds both but exclude video gambling access to show that access to bars and video gambling are not highly correlated. Column (6) re-introduces access to video gambling and includes both measures of access to bars. Notably, the co- efficient of interest remains very stable suggesting that changes in access to bars are not mediating the effect of access to gambling and crime. 7 Back of the Envelope Cost /Benefit Taken together, our evidence suggests that access to gambling has increased property and violent crimes in Chicago. In this section we conduct a back of the envelope cost/benefit calculation of the Video Gambling Act for the City of Chicago. For this exercise, we first break down effects by crime type and use cost estimates typically used in the literature to impute the costs of crime. Because Chicago does not directly collect tax revenue from gambling, calculating the benefit is not straight forward. Using alternative measures for benefits, we find that the costs greatly outweigh the benefits. Effects by type of crime are presented in Table 5. Overall, we find that the effects are mainly driven by property-type crimes: note that the effects on violent crimes are mostly 19This was all the data available at the time of our FOIA request. 18 ===== PDF PAGE 54 ===== [Extraction: OCR (rendered-page OCR)] driven by robbery ~ a violent form of property crime. The increase in property crime is mostly driven by an increase in motor vehicle thefts of 12.3% (s.e. 0.031). Burglary and larceny also increase by 5.6% and 4.78%, statistically relevant at the 5% level. Most of the effects on violent crimes are driven by robbery, which increased by 13.1% (s.e. 0.028). We also find statistically significant increases at the 10% level in aggravated battery (5.99%) and sexual assault (14.1%). The large increase in robbery (and burglary, larceny, car theft) is consistent with direct effects of gambling such as problem and pathological gambling where financial distress may drive individuals to commit crimes that have a monetary return. It is also consistent with an increase in the payoff to crime, where individuals carry more cash to gamble (or from their winnings) and become more “profitable” targets.”° We can obtain the back of the envelope estimates of the cost associated with the increase in crime in Chicago as a result of video gambling. Following Chalfin and McCrary (2017), we use estimates produced by Cohen and Piquero (2009) on the costs of crime that take into account both direct costs to the victim and indirect costs from reductions in the victim’s quality of life. We present the costs for each type of crime in Table 6. Since the time video gambling was adopted, we estimate that it contributed an additional: 119.5 sexual assaults, 322.7 aggravated batteries, 992.7 robberies, 692.2 burglaries, 1,562.3 larcenies, and 1,123.7 motor vehicle thefts. This amounts to a total cost of almost $55.5 million (in 2016 dollars). Video gambling does not provide any direct benefits to Chicago because the City does not directly collect tax revenue from it. However, they do benefit indirectly through taxes collected and redistributed by the State of Illinois. One shortfall is that we cannot observe how much of video gambling state revenue was transferred to Chicago. As a proxy for it, we use the 1.34% share of state income tax revenue distributed to Chicago in 2012.7! 20This has been observed in other contexts. For example, there is evidence that when Food Stamps switched payments to Electronic Benefits Transfers (EBT) crime decreased (Wright et al., 2014). 21Based on total income tax collections from the Illinois Department of Revenue and State Income Tax 19 ===== PDF PAGE 55 ===== [Extraction: OCR (rendered-page OCR)] Since video gambling was adopted, we estimate that Chicago received approximately $8.6 million from the State Government, substantially less than the estimated $55.5 million cost.2? Alternatively, if all video gambling establishments within three block groups from the Chicago border were to transfer the municipal portion of taxes to Chicago instead of their own municipality, that would amount to $9.9 million — still very far from the estimated cost of the crime it created within Chicago. 8 Conclusion We estimate the effects of increasing access to gambling on crime taking advantage of the legalization and expansion of video gambling in Illinois. Using crime data for Chicago, which does not allow gambling, we compare areas in the city that have relatively higher access with those that have lower access to gambling. We show that despite there being numerous casinos in the vicinity of Chicago, the Video Gaming Act drastically increased access to gambling in the City. In turn, higher access to gambling increases both property and violent crime. This generated approximately 1,450 and 4,100 additional property and violent crimes in Chicago, costing the City almost $55.5 million. There are numerous avenues for future research. More work is necessary to better un- derstand and disentangle the mechanisms at play. Additionally, given that video gambling is not only here to stay, but is set to expand in other states, it is necessary to have a bet- ter understanding of what policies could help minimize these social externalities and their cost-benefit. There are several non-profits and government organizations providing numer- ous services targeting gambling addiction. For example, the Illinois Alliance on Problem Gambling provide a number of services such as phone and text-based counseling, and a free subscription service to receive motivational messages via text message. This may provide transfers to Chicago from the 2012 Comprehensive Annual Financial Report of Chicago. 22Tn total, the State of Illinois collected $640,463,278.57 in taxes since 2012 (in July 2016 dollars). 20 ===== PDF PAGE 56 ===== [Extraction: OCR (rendered-page OCR)] grounds for promising future work. 21 ===== PDF PAGE 57 ===== [Extraction: OCR (rendered-page OCR)] References Anderson, D. M., Crost, B., and Rees, D. I. (2017). Wet Laws, Drinking Establishments and Violent Crime. The Economic Journal, Forthcoming. Arthur, J. N., Williams, R. J., and Belanger, Y. D. (2014). The relationship between legal gambling and crime in Alberta. Canadian Journal of Criminology and Criminal Justice, 56(1):49-84. Barthe, E. and Stitt, B. G. (2007). Casinos as “hot spots” and the generation of crime. Journal of Crime and Justice, 30(2):115-140. Card, D. and Dahl, G. B. (2011). Family violence and football: The effect of unexpected emotional cues on violent behavior. 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Labour Economics, 24(C):151-160. Humphreys, B. R. and Soebbing, B. P. (2014). Access to Legal Gambling and the Incidence of Crime: Evidence from Alberta. Growth and Change, 45(1):98-120. Hyclak, T. (2011). Casinos and campus crime. Economics Letters, 112(1):31-33. Illinois Gaming Board (2016). Monthly Riverboat Casino Report: December 2016. http: //www.igb.illinois.gov/FilesRiverboat RevenueReports/201612CasinoReport.pdf. Illinois Gaming Board (2017). Illinois Gaming Board: 2016 Annual Report. https://www. igb.illinois.gov/FilesAnnualReport/2016IGBAnnualReport.pdf. Linden, L. and Rockoff, J. E. (2008). Estimates of the impact of crime risk on property values from Megan’s laws. The American Economic Review, 98(3):1103-1127. Nichols, M. W. and Tosun, M. S. (2017). The impact of legalized casino gambling on crime. Technical report. Reece, W. S. (2010). Casinos, hotels, and crime. Contemporary Economic Policy, 28(2):145-161. 23 ===== PDF PAGE 59 ===== [Extraction: OCR (rendered-page OCR)] Rossow, I. and Norstrom, T. (2012). The impact of small changes in bar closing hours on violence. The Norwegian experience from 18 cities. Addiction, 107(3):530-537. Wilson, J. M. (2001). Riverboat Gambling and Crime in Indiana: An Empirical Investiga- tion. NCCD news, 47(4):610-640. Wright, R., Tekin, E., Topalli, V., McClellan, C., Dickinson, T., and Rosenfeld, R. (2014). Less cash, less crime: Evidence from the electronic benefit transfer program. Technical report. 24 ===== PDF PAGE 60 ===== [Extraction: OCR (rendered-page OCR)] Table 1. The Effect of Access to Video Gambling on Crime (1) (2) (3) (4) (5) (a) Property Crime Within 3 Blocks (=1) 0.0499*** 0.0556*** 0.0671*** 0.0499*** 0.0667*** (0.0189) (0.0189) (0.0180) (0.0188) (0.0180) Observations 125,857 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 991 (b) Violent Crime Within 3 Blocks (=1) 0.0900*** 0.0933*** 0.0792*** 0.0873*** 0.0753*** (0.0213) (0.0203) (0.0196) (0.0212) (0.0193) Observations 125,857 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 991 (Distance to Riverboats) No Yes No No Yes Community Trends No No Yes No Yes Demographic Controls No No No Yes Yes Notes: Sample of Chicago census block groups by month ever within six block groups from a video gam- bling establishment. Dependent variables are number of property or violent crimes. Each coefficient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. All estimates include block group fixed effects and month-year effects. f(Distance to Riverboats) is a quadratic function of distance, in miles, from the block group centroid to the closest riverboat casino. Community Trends are community area time trends. Demographic controls are obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 25 ===== PDF PAGE 61 ===== [Extraction: OCR (rendered-page OCR)] Table 2. The Effect of Access to Video Gambling on Crime, with Placebos (1) (2) (3) (4) (a) Property Crime Within 3 Blocks (=1) 0.0667*** 0.0723*** 0.0733*** 0.0606*** (0.0180) (0.0198) (0.0206) (0.0221) Placebo (1 year prior) 0.0153 (0.0153) Placebo (2 years prior) 0.0108 (0.0150) Placebo (3 years prior) -0.00768 (0.0145) P-Value (Within 3 = Placebo) 0.0026 0.0008 0.0002 Observations 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 (b) Violent Crime Within 3 Blocks (=1) 0.0753*** 0.0683*** 0.0870*** 0.0947*** (0.0193) (0.0209) (0.0218) — (0.0233) Placebo (1 year prior) -0.0224 (0.0208) Placebo (2 years prior) 0.0222 (0.0177) Placebo (3 years prior) 0.0276 (0.0175) P-Value (Within 3 = Placebo) 0.0001 0.0016 0.0006 Observations 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Each coefficient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. Placebo variables equal one for the indicated period of time (1, 2 or 3 years) before an establishment within three block groups first adopts video gambling. All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, community area-time trends, and demographic controls obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 26 ===== PDF PAGE 62 ===== [Extraction: OCR (rendered-page OCR)] Table 3. The Effect of Access to Video Gambling on Crime, Controlling for Access to Bars (1) (2) (3) (4) (5) (6) (a) Property Crime Within 3 Blocks (=1) 0.0526*** 0.0650*** 0.0641*** 0.0659*** - 0.0650*** (0.0178) (0.0178) (0.0180) (0.0176) (0.0177) Number of Bars in: Same Block (/100) 2.382 3.599** = 3.522** (1.798) (1.735) (1.729) Within 3 Blocks (/100) -0.327* -0.449** = -0.457** (0.178) (0.186) (0.181) Observations 98,109 98,109 98,109 98,109 98,109 98,109 Number of blocks 991 991 991 991 991 991 (b) Violent Crime Within 3 Blocks (=1) 0.0717*** 0.0548*** 0.0539*** 0.0545*** - 0.0539*** (0.0200) (0.0204) (0.0204) (0.0205) (0.0205) Number of Bars in: Same Block (/100) 1.565 1.716 1.581 (1.542) (1.669) (1.686) Within 3 Blocks (/100) 0.0590 0.0105 -0.0061 (0.215) (0.229) ~— (0.231) Observations 98,010 98,010 98,010 98,010 98,010 98,010 Number of blocks 990 990 990 990 990 990 Community Trends No Yes Yes Yes Yes Yes Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling estab- lishment. Dependent variables are number of property or violent crimes. Each coefficient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. Number of bars is the number of active liquor licenses in the same block group or within three block groups. All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, community area-time trends, and demographic controls obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 27 ===== PDF PAGE 63 ===== [Extraction: OCR (rendered-page OCR)] Table 4. The Effect of Access to Video Gambling on Domestic Crime (1) (2) (3) (4) (5) Domestic Crime Within 3 Blocks (=1) 0.0424** 0.0402** 0.0415** 0.0311* 0.0313* (0.0190) (0.0187) (0.0191) (0.0177) (0.0177) Observations 125,857 = 125,857 =: 125,857 125,857 =: 125,857 Number of blocks 991 991 991 991 991 {(Distance to Riverboats) No Yes No No Yes Community Trends No No Yes No Yes Demographic Controls No No No Yes Yes Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of domestic crimes. Each coefficient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks cquals one if the census block group is within 3 block groups of a vidco gambling establishment after the establishment adopted video gambling. All estimates include block group fixed effects and month-year effects. f(Distance to Riverboats) is a quadratic function of distance, in miles, from the block group centroid to the closest riverboat casino. Community Trends are community area time trends. Demographic controls are obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 28 ===== PDF PAGE 64 ===== [Extraction: OCR (rendered-page OCR)] Table 5. The Effect of Access to Video Gambling on Crime, by Type (1) (2) (3) (4) (a) Property Crime Motor Arson Burglary Larceny Vehicle Theft Within 3 blocks (=1) 0.0277 = 0.0560** + —-0.0478** 0.123*** (0.118) (0.0269) (0.0233) (0.0310) Observations 127,254 127,508 127,254 127,381 Number of blocks 1,002 1,004 1,002 1,003 (5) (6) (7) (8) (9) (b) Violent Crime Sexual Aggravated Aggravated Homicide Assault Assault Battery Robbery Within 3 blocks (=1) 0.0103 0.141* -0.0453 0.0599* OAs Fe (0.115) (0.0764) (0.0365) (0.0316) (0.0280) Observations 84,074 116,713 125,730 124,968 124,968 Number of blocks 662 919 990 984 984 Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Each coefficient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, community area-time trends, and demographic controls obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 29 ===== PDF PAGE 65 ===== [Extraction: OCR (rendered-page OCR)] Table 6. Back of the Envelope Cost Estimates Crime Estimated Cost Per Incident Total Cost New Incidents (Cohen Piquero, 2009) Property: 9,509,120.52 Motor Vehicle Theft 1,123.66 6,326.41 7,108,707.54 Larceny 1,562.32 517.18 807,995.92 Burglary 692.20 2,300.51 1,592,417.06 Violent: 45,987,751.33 Robbery 992.70 13,803.08 13,702,279.34 Aggravated Battery 322.67 42,559.50 13,732,543.18 Sexual Assault 119.48 155,284.67 18,552,928.80 Total 55,496,871.85 Notes: All dollar amounts in 2016 dollars. Estimated number of new incidents is based on coefficients obtained in Table 5. 30 ===== PDF PAGE 66 ===== [Extraction: OCR (rendered-page OCR)] Number of Establishments Figure 1. Number of Video Gambling Establishments in Illinois 6000 4000 Law was enacted 2000 ° Jan, 2011 Jan, 2012 Jan, 2013 Jan, 2014 Jan, 2015 Jan, 2016 Note: Own calculations based on data from the Illinois Board of Gaming. 31 ===== PDF PAGE 67 ===== [Extraction: OCR (rendered-page OCR)] ce Figure 2. Access to Casinos versus Video Gambling Establishments in Chicago ; ® 0-5 min. @ 5-10 min. Pai ive ie nee a (a) Travel Time to Nearest Casino (b) Travel Time to Nearest Video Gambling Establishment in April 2012 in April 2014 Notes: Map of Chicago census block groups. Travel time by car in minutes measured from the census block group centroid to the nearest (a) casino or (b) video gambling establishment, ===== PDF PAGE 68 ===== [Extraction: OCR (rendered-page OCR)] Figure 3. Identification Strategy April 2014 Cy e e e ee e e Pe Pa ee e eco “3 = Establishments — @ One Block ee m= Two Block = Three Block Four Block Five Block 2 Six Block e8 e e e » » @e . Od Notes: Dots represent video gambling establishments operating in April 2014. Map of Chicago census block groups. Each block group is classified by geographic proximity to video gambling establishments. For example, one block denotes directly adjacent to a block (outside Chicago) with at least one video gambling establishment, two block denotes two blocks away (i.e., adjacent-of-adjacent), and so on. Six block is six or more block groups away from a video gambling establishment. 33 ===== PDF PAGE 69 ===== [Extraction: OCR (rendered-page OCR)] Figure 4. The Effect of Access to Video Gambling on Crime, Event Study w re N 4 wo 4 <€ go 4 3S 7 82] o + wo o4 < - 4 + Coefficient t+ 95% Cl vay T T T — T , T T T 3 @ ee y cit 2 = = & g 2 at a a 3 3S + + at £ st 1 Same oa oe! Cah ia) Coen Y ' i) + + N Months with respect to video gambling establishment opening within 3 blockg (a) Property Crimes wo Kd nu 4 wo | i gr 3 Bio 83] | o + wo i | | =| + Coefficient t———+ 95% Cl ! T T T T an CT T T T T 3 e = a att ei = BS & 2 2 a zi a 3S 3 “te + Re 2 wo + oO ord I o N o — nN nN ~ ! + 3 = z= | y ' + + a Months with respect to video gambling establishment opening within 3 blockt (b) Violent Crimes Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Point estimates and 95% confidence intervals for estimating Equation (1) using dummy variables indicating timing with respect to first video gambling establishment operating within three blocks. The omitted category is 6 to 1 months before video gambling establishment operates within three blocks (-6/-1). 34 ===== PDF PAGE 70 ===== [Extraction: OCR (rendered-page OCR)] Figure 5. The Effect of Access to Video Gambling on Crime, by Volume Gambled wo a4 N 4 w J ae 1@ 2-4 =o 2 is) ire] 84 of fe} 4 + Coefficient "——4 95% Cl Sy T T T = = <= < § 5 2 2 An] Zz 2 = Volume Gambled Within 3 Blocks (a) Property Crimes a J N 4 wo J Ne 2 s_] en fo} is) wo 84 of 3 | + Coefficient 4 95% Cl ri T = £ 3 2 Mid Low Mid High 4 Volume Gambled Within 3 Blocks (b) Violent Crimes Note: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Point estimates and 95% confidence intervals for estimating Equation (1) using dummy variables by volume played at video gambling establishments within three blocks. Classified into four groups by quartile of monthly volume played: Low ($1 - $801,313.7), Mid Low ($801,313.7 - $1,603,046), Mid High ($1,603,046 - $3,442,390), High ($3,442,390+). The omitted category is zero volume. 35 ===== PDF PAGE 71 ===== [Extraction: OCR (rendered-page OCR)] Figure 6. The Effect of Access to Video Gambling on Crime, by Blocks tory s + Coefficient t——4 95% Cl N 4 o 4 ane 2 oO a7 4 o fo} [o) wo 84 ° *} wo o 4 ' T T T T T eae’ ol x no on a on n oO x x x x x So [=] [=] [=] oO [=] oO 2 2 2 2 fo} i oO oO o oO oO N o vt wo o Blocks to closest Video Gambling Establishment (a) Property Crimes io 4 . + Coefficient t——— 95% Cl ad w | ais 2 2-4 Fea oO o (6) wo 83 ° + wo o4 1 1 Block 6 Blocks __ 2 Blocks 3 Blocks 4 Blocks 4 5 Blocks 7 Blocks to closest Video Gambling Establishment (b) Violent Crimes Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Point estimates and 95% confidence intervals for estimating Equation (1) using dummy variables for proximity of closest video gambling establishment (i.e., one block, two, etc.). The omitted category is 6 blocks (that is, has at least one video gambling establishment within six blocks). 36 ===== PDF PAGE 72 ===== [Extraction: OCR (rendered-page OCR)] NOT FOR PUBLICATION A Online Appendix A.1 Additional Robustness This section details a number of additional robustness checks. We explore the sensitivity of our estimates to sample definitions, the use of alternative estimators, alternative geographic time trends and using alternative definitions for access to video gambling. Overall, results are similar across the different checks. We explore the sensitivity of our results to alternative definitions of the sample. In our main analysis we restrict our sample to census block groups that are ever within six block groups from a video gambling establishment. In Table A.1, column (1) we present the estimate for our preferred specification in the paper (column (5) of Table 1). In column (2) we do not apply any restrictions in the sample and include all block groups in Chicago while column (3) restricts to blocks within ten block groups of a gambling establishment. In columns (4) and (5) we return to our original sample, but drop blocks on the lake shore or those that are industrial (i.e., have no residences). Regardless of how we specify the sample, our point estimates are very stable. The estimates are also very stable when using alternative estimators. In Table A.2 we present estimates for our preferred specification using Poisson regression in the first column. In column (2) we use Negative Binomial instead. In column (3) we redefine the dependent variable as the logarithm of the number of crimes plus one and estimate by OLS. Again, regardless of the estimator employed, results remain the same. We also account for potential unobserved shocks such as community level policies or changes in policing by accounting for different geographic trends. In our preferred specifi- cation, we account for community area time trends. An alternative concern is that policing strategies could have changed differently in different areas. To account for this potential, instead of including community area trends, we include police district or beat-level trends in columns (2) and (3) of Table A.4. Police are designated to a police district. Within district, officers are equally assigned to different beats for the year. The point estimates remain very similar to our original estimates. Additionally, column (4) uses census tract level trends, which reduce our geographic variability substantially. Nevertheless, results are still robust to accounting for time trends at this level.” Our results do not depend on how access to video gambling is defined. We present estimates using our preferred specification for a number of alternative definitions of access to gambling in Table A.3. Number of VG Within 3 Blocks is the count of number of gambling establishments within three block groups at time t, log(Volume Played+1 is the logarithm of total volume played plus one at time t in all video gambling establishments within three blocks. Access to VG is an access measure typically used in the trade literature that weights each video gambling establishment by its distance (or travel time) at time t. ?3Chicago has 77 community areas, 23 police districts, 251 police beats, and 797 census tracts. 37 ===== PDF PAGE 73 ===== [Extraction: OCR (rendered-page OCR)] For example, if d;,; is the linear distance (or traveling time) between block centroid i and establishment j, and 1(VG;, = 1) indicates that establishment 7 has video gambling in period t, then gambling access (G'‘A) is calculated as GAjy = oy 7.4 exp(—1(VGj4 = 1)-d;,;). We standardize all the measures to have mean zero and standard deviation one for ease of comparison. Regardless of the definition used, results are very similar. For example, increasing the number of video gambling establishments within 3 blocks by one standard deviation is associated with an increase of 3.3% (s.e. 0.006) and 2.85% (s.e. 0.0097) in property and violent crimes. When defining intensity of access to video gambling, in the paper we use volume played at establishments within three blocks to show that effects were increasing in volume played. Results are similar when using number of establishments within three blocks instead. Re- sults are presented in Figure A.1. A.2 Effect on Supply of Bars In the paper we show that accounting for the availability of bars either in the same block or in neighboring blocks does not affect our estimates. Nevertheless, it is still valuable to examine whether the Video Gaming Act affected the supply of bars in the area. To examine whether the access to video gambling affected the number of bars within Chicago, we replicate our analysis on crime but using number of bars as dependent variable instead. We are interested in comparing areas inside Chicago that experienced higher access to gambling with those that had relatively lower access to evaluate whether the number of bars changed differentially. We show the evidence as an event-study figure in Figure A.2.a. Overall, we do not find evidence that access to gambling inside Chicago affected the number of bars. Even though point estimates are positive after video gambling becomes accessible, the magnitude is small and in the other direction. Using our baseline specification instead of the event study, the estimated coefficient is 0.038 (s.e. 0.041).74 This is a small magnitude considering that the average number of bars in the sample of block groups inside Chicago used for the analysis is 1.42. Even if the effect were orders of magnitude larger, economically it seems unlikely to be driving the effects on crime. The larger threat to our interpretation of results is that the Video Gaming Act increased the number of bars outside Chicago, near the boarder. To test this we employ a similar analysis as before but now we include block group outside of Chicago that are within 3 blocks of the Chicago boarder. We define a new indicator variable that equals one if the block has video gambling in that month, as a proxy for when the municipality allowed for its implementation (blocks inside Chicago are always zero). The event-study estimates are presented in Figure A.2.b. It seems that after video gambling was allowed, the number of bars increased near the boarder outside of Chicago. However, notice that this trend was already happening before the adoption of video gambling. For this reason, we should be cautious about attributing the increase in number to video gambling. Taken together, the evidence suggests that the effects of access to gambling on crime are not driven by changes 24 Available in Table A.5. 38 ===== PDF PAGE 74 ===== [Extraction: OCR (rendered-page OCR)] in access to bars. Next we explore potential mechanisms driving the relationship between access to gambling and crime. 39 ===== PDF PAGE 75 ===== [Extraction: OCR (rendered-page OCR)] OF Table A.1. Sample Sensitivity (1) (2) (3) (4) (5) (a) Property Crime Within 3 blocks (=1) 0.0667*** 0.0410** 0.0398** 0.0679*** 0.0661*** (0.0180) (0.0180) (0.0182) (0.0181) (0.0181) Observations 125,857 276,479 214,122 123,825, 125,603 Number of blocks 991 2,177 1,686 975 989 (b) Violent Crime Within 3 blocks (=1) 0.0753*** 0.0674*** 0.0691*** 0.0740*** 0.0746*** (0.0193) (0.0187) (0.0188) (0.0194) (0.0193) Observations 125,857 276,479 214,122 123,825 125,603 Number of blocks 991 2,177 1,686 975 989 Block Restrictions 1to6 None (All Blocks) 1 to 10 1to6 1to6 Other Restrictions None None None Drop Lake Shore Drop Industrial Notes: Sample of Chicago census block groups by month. Dependent variables are number of property or violent crimes. Each coefficient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. Column (1) uses baseline sample definition used throughout the paper, column (2) includes all block groups in Chicago, column (3) excludes blocks that are more than 10 block groups away from a video gambling establishment. The last two columns use baseline sample but drop Lake Shore block groups in column (4) or industrial blocks in column (5). All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, community area-time trends, and demographic controls obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. ===== PDF PAGE 76 ===== [Extraction: OCR (rendered-page OCR)] Table A.2. Robustness to Estimator Used (1) (2) (3) (a) Property Crime Nr. Property Crime log(Property+1) Within 3 Blocks (=1) 0.0667*** 0.0558*** 0.0351*** (0.0180) (0.00984) (0.0111) Observations 125,857 125,857 125,857 Number of blocks 991 991 991 (b) Violent Crime Nr. Violent Crime log(Violent+1) Within 3 Blocks (=1) 0.0753*** 0.0791*** 0.0405*** (0.0193) (0.0159) (0.00819) Observations 125,857 125,857 125,857 Number of blocks 991 991 991 Estimator Poisson Neg. Binomial OLS Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Coefficients for estimating Equation (1) using Poisson regression in column (1) and Negative Binomial in column (2). Column (3) estimates the model using OLS, where the dependent variable is defined as the logarithm of the number of crime incidents at time t plus one. Standard errors clustered at the block group level are in parentheses. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, community area- time trends, and demographic controls obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 41 ===== PDF PAGE 77 ===== [Extraction: OCR (rendered-page OCR)] Table A.3. Alternative Video Gambling Access Definitions (1) (2) (3) (4) (a) Property Crime Number of VG Within 3 Blocks 0.0330*** (0.00602) log(Volume Played +1) 0.0254*** (0.00606) Access to VG (linear distance) 0.0178*** (0.00658) Access to VG (travel time) 0.0145*** (0.00480) Observations 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 (b) Violent Crime Number of VG Within 3 Blocks 0.0285*** (0.00966) log(Volume Played +1) 0.0269*** (0.00639) Access to VG (linear distance) 0.0279*** (0.00746) Access to VG (travel time) 0.0216*** (0.00523) Observations 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Each coeffi- cient is an estimate of Equation (1) using Poisson regression. Standard errors clustered at the block group level are in parentheses. All measures of access are standardized with mean zero and standard deviation of one (see Section A.1 for variable definitions). All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, commu- nity area-time trends, and demographic controls obtained by extrapolating between the Census and American Community Survey: total population, population density, median age, average household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 42 ===== PDF PAGE 78 ===== [Extraction: OCR (rendered-page OCR)] Table A.4. Robustness to alternative trends (1) (2) (3) (4) (a) Property Crime Within 3 Blocks (=1) 0.0667*** 0.0498*** 0.0498*** 0.0491** (0.0180) (0.0193) (0.0193) (0.0198) Observations 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 (b) Violent Crime Within 3 Blocks (=1) 0.0753*** 0.0736*** 0.0533*** 0.0509** (0.0193) (0.0186) (0.0204) (0.0226) Observations 125,857 125,857 125,857 125,857 Number of blocks 991 991 991 991 Linear Time Trends Community Area Police District Police Beat Census Tract Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Coefficients for estimating model 1 using Poisson regression. Within 3 blocks equals one if the census block group is within 3 block groups of a video gambling establishment after the establishment adopted video gambling. Each column uses different level-specific linear time trend (e.g., Community, Police District, etc.). All estimates include block group fixed effects, month-year effects, a quadratic function of distance to the closest riverboat casino, and demographic controls from the Census and American Community Survey (see Section 3 for full list of controls). Standard errors clustered at the block group level are in parentheses. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 43 ===== PDF PAGE 79 ===== [Extraction: OCR (rendered-page OCR)] Table A.5. Effect of Video Gambling Act on Number of Bars (1) (2) (3) Number of Bars Within 3 Blocks (=1) 0.0379 0.0485 (0.0407) (0.0388) Block has VG (=1) O1055tS OM 10%F* (0.0386) (0.0387) Observations 26,001 44,874 44,874 Number of blocks 312 554 554 Original Sample Yes No No Expanded Sample No Yes Yes Notes: Each coefficient is an estimate of Equation (1) using Pois- son regression. Standard errors clustered at the block group level are in parentheses. Within 3 blocks cquals one if the census block group is within 3 block groups of a video gambling establishment af- ter the establishment adopted video gambling. Column (1) restricts the sample to block groups in Chicago. Columns (2) and (3) include Chicago and block groups outside of Chicago that are within three block groups from the Chicago border. Block has VG equals one if the block group has at least one establishment with video gambling at time t. All estimates include block group fixed effects, month- year effects, a quadratic function of distance to the closest riverboat casino, community area-time trends, and demographic controls ob- tained by extrapolating between the Census and American Commu- nity Survey: total population, population density, median age, aver- age household size, percentage males between 15 and 35, percentage of African Americans, number of housing units, percentage of vacant housing, and percentage of home owners. * Significant at 10% level; ** significant at 5% level; *** significant at 1% level. 44 ===== PDF PAGE 80 ===== [Extraction: OCR (rendered-page OCR)] Table A.6. Descriptive Statistics N Mean St. Dev. Min. Max. (a) Crime counts Property 125,857 3.728 3.772 0 75 Violent 125,857 1.194 1.662 0 17 Domestic 125,857 2.037 2.342 0 22 Arson 125,857 0.024 0.162 0 5 Burglary 125,857 0.845 1.225 0 17 Larceny 125,857 2.235 2.881 0 71 Motor Vehicle Theft 125,857 0.625 0.972 0 15 Robbery 125,857 0.518 0.941 0 14 Homicide 125,857 0.022 0.156 0 6 Sexual Assault 125,857 0.058 0.248 0 4 Aggravated Assault 125,857 0.228 0.532 0 7 Aggravated Battery 125,857 0.368 0.751 0 10 (b) Access to video gambling Within 3 Blocks (=1) 125,857 0.116 0.320 0 1 (c) Access to bars Same Block (/100) 98,109 0.005 0.010 0 0.13 Within 3 Blocks (/100) 98,109 0.134 0.248 0 2.35 (d) 2011-2015 ACS characteristics Population 991 1248.299 569.105 0 8572 Pop. Density 991 14756.800 9171.606 0 55074.66 Median Age 991 36.119 8.474 0 76.4 Avg. HH Size 991 3.087 0.647 0 5.72 Nr. Housing Units 991 461.134 178.503 0 1487 % Male between 15-35 991 0.137 0.059 0 0.52 % Black 991 0.395 0.429 0 1 % Vacant 991 0.128 0.104 0 0.77 % Owner inhabited 991 0.505 0.253 0 1 Notes: Data in panels (a) to (c) at the census block group by month level for the sample of block groups in Chicago ever within six block groups of a video gambling establishment, used for our main analysis. Panel (d) from the 2011-2015 American Community Survey at the block group level for the same sample. 45 ===== PDF PAGE 81 ===== [Extraction: OCR (rendered-page OCR)] Figure A.1. Number of Establishments Coefficient 1 _ wo 84 of Py + Coefficient +——+ 95% Cl r u T T T 2 g bs 2 = + x e 6 Number of Establishments with Video Gambling Within 3 Blocks (a) Property Crimes a d| a 4 2 | ‘ae 2 g-4 = @ ° (S) Le) 84 oe 9 | + Coefficient t——1 95% Cl i Ta T T 2Q so) St 2 = + x e 6 Number of Establishments with Video Gambling Within 3 Blocks (b) Violent Crimes Notes: Sample of Chicago census block groups by month ever within six block groups from a video gambling establishment. Dependent variables are number of property or violent crimes. Point estimates and 95% confidence intervals for estimating Equation (1) using dummy variables by number of video gambling establishments within three blocks. Classified into four groups by quartile of number of establishments. The omitted category is zero establishments. 46 ===== PDF PAGE 82 ===== [Extraction: OCR (rendered-page OCR)] Figure A.2. Effect of Video Gambling on Number of Bars Coefficient 0 on) eH HH ———! % + Coefficient H+ 95% Cl T T T T T T T T T T n o oO ~~ hd wo - Led ise] oO 17.) - t 1 + - - a 5 2 a Jt a 6 Ss + + + € ip aces en ee lon) Bey MN Sie GH n 1 + + nN Months with respect to video gambling establishment opening within 3 block¢ (a) Within Chicago a 4 N 4 € 2 3s b= Oo °o Do f + | NJ ' + Coefficient H+ 95% Cl 0/454 -25/less 5 -24/-19- -18/-135 -12/-74 -6/-14 +6/+114 +12/4+174 +18/+23 4 T 2 co] . a Months with respect to video gambling establishment opening within 3 block? (b) Outside Chicago (comparing to inside Chicago) Notes: Sample of census block groups by month (a) ever within six block groups from a video gambling establishment; (b) adding within three blocks of Chicago border, outside of Chicago. Dependent variables are number of bars. Point estimates and 95% confidence intervals for estimating Equation (1) using dummy variables indicating timing with respect to first video gambling establishment operating within three blocks. The omitted category is 6 to 1 months before video gambling establishment operates within three blocks (-6/-1). 47 ===== PDF PAGE 83 ===== [Extraction: OCR (rendered-page OCR)] Trem # 5. A. WEST CHICAGO POLICE DEPARTMENT MONTHLY REPORT JULY 2021 Colin Fleury, Chief of Police ===== PDF PAGE 84 ===== [Extraction: OCR (rendered-page OCR)] TABLE OF CONTENTS Organizational Chart 3 Department Overview 4 Personnel 5 Criminal Activities 6 Monthly Totals 9 Officer Activities 10 ===== PDF PAGE 85 ===== [Extraction: OCR (rendered-page OCR)] Organizational Chart West Chicago Police Department June 2021 Chiefof Police (1) Administrative Management Analyst Assistant (1) (a) DeputyChief (1) Operations Commander (1) eee | Training Officer (1) Officer (1) CommunityRelations AM ShiftSergeant (2) PMShiftSergeant (2) | Investigations Sergeant (1) PatrolOfficers (12) CommunityService Officer (1) PatrolOfficers (11) Administrative Sergeant (1) Detectives SocialWorker (6) (1) SchoolResource RecordsPersonnel Officer Contractual (2) (3) EvidenceCustodian (cso) (1) ===== PDF PAGE 86 ===== [Extraction: OCR (rendered-page OCR)] Department Overview The Mission of the West Chicago Police Department is to Protect Life and Liberty, Provide Quality Police Services, and Forge Community Partnerships with Integrity and Professionalism. There are three divisions in the Police Department: the Office ofthe Chief of Police, the Operations Division and the Support Services Division. The primary responsibility of the Officeof the Chief of Police is to provide general management direction and control for the Department. The Office of the Chief of Police consists of the Chief of Police, the Management Analyst and the Administrative Assistant. The Operations Division consists of Uniformed Patrol Officers, Community Service Officers, Detectives, School Resource Officers, Evidence/Property, the Training Officer and the Community Relations Officer. The Support Services Division consists of Vehicle and Building Maintenance, Records and Social Services. ===== PDF PAGE 87 ===== [Extraction: OCR (rendered-page OCR)] Personnel On July 13", the Police Explorers gathered for training. Topics covered included the phonetic alphabet, traffic stops and dispatching. Chief Fleury introduced himself to the Explorers. Sergeant Samuel and Officer Rigler were on hand to assist Officer Nielsen with the training review. On July 29", Officer Nielsen visited with the children at Little Prince Day Care. Topics covered included bullying, stranger danger and what it is like to be a police officer. ===== PDF PAGE 88 ===== [Extraction: OCR (rendered-page OCR)] Criminal Activities Aggravated Discharge of a Firearm: Person(s) unknown fired five to six shots outside of the West Chicago Social Club located at 900 E. Roosevelt Rd. Witnesses observed a vehicle proceeding westbound on Roosevelt Rd. occupied by three subjects. The vehicle slowed down in front of the Social Club and several shots were then heard. The vehicle then continued westbound. Two subjects had suffered gunshot wounds to their legs. The victims were tended to by police and West Chicago Fire Protection District personnel before being transported to Northwestern Medicine Central DuPage Hospital. Investigation is ongoing. Criminal Damage to Property: A known person attended a party at a residence in the 100 block of Hill Ct., drank a large amount of alcohol and began to argue with his ex-girlfriend. The suspect was asked to leave the residence. Shortly afterward a loud noise was heard and the victim’s rear driver’s side window was noted to be broken. The suspect was located by officers in the area of Neltnor Blvd. and Waynewood Dr. The suspect’s left hand was bleeding but denied breaking the window. The suspect was issued a local ordinance citation for Criminal Damage to Property. Person(s) unknown damaged a vehicle parked in the 700 block of Lincoln Ave. The rear passenger side window of the SUV had been damaged by unknown means. Person(s) unknown damaged a vehicle parked in the 600 block of Parkside Ave. The driver’s side rear window had been shattered by unknown means. Person(s) unknown damaged a vehicle parked I the 300 block of E. Stimmel St. The rear window to the victim’s SUV has been shattered by unknown means. Person(s) unknown through a glass bottle at the victim’s vehicle while at the Thornton’s gas station located at 1330 S. Neltnor Blvd. The suspect entered the station lot in a vehicle, threw the bottle at the victim’s truck and then fled the area southbound on Neltnor Blvd. The victim was able to obtain registration information for the suspect vehicle. The bottle damaged the driver’s side of the victim’s truck. Investigation is ongoing. Criminal Defacement: Person(s) unknown spray painted non-gang related graffiti on the fence of a residence in the 200 block of E. Washington St. Person(s) unknown spray painted non-gang related graffiti on the dumpster, a fence surrounding the dumpster and the rear door to the food pantry located at 123 Fremont St. Person(s) unknown used a marker to write non-gang related graffiti on a bench at Pioneer Park located at 479 W. Forest Ave. A Park District employee saw a possible suspect on the bench, and then ride a bicycle to a residence in the 700 block of Lyman St. Attempts to contact someone at the residence were unsuccessful. Investigation is ongoing. Person(s) unknown spray painted gang-related graffiti on the porta potty and trash receptacle at Don Early Park located at 840 E Washington St. ===== PDF PAGE 89 ===== [Extraction: OCR (rendered-page OCR)] Person(s) spray painted graffiti on a fence surrounding a dumpster in the 300 block of Wilson Ave. The suspects observed that a witness was recording their actions and began to flee the area. One suspect fell from his skateboard and was detained by the witness. Police arrived and questioned the suspect. Information was obtained on a second subject who was stated to have spray painted the fence. This first suspect was issued a local ordinance citation for Defacement of Private Property and released to his sister. Officers located the second offender’s residence and issued a local ordinance citation for Defacement of Private Property. Criminal Trespass to Property: On two separate occasions, persons(s) unknown entered the Turtle Splash Water Park, located at 129 W. National St., after it has closed. The suspect(s) poured dishwashing liquid into the pool. Fraud: Person(s) unknown emailed a business located in the 100 block of Atlantic Dr. The emailer placed an order for $14,3750.00 in packing tape. The suspect provided a company name, a billing address in California and a ship to address in Georgia. The victim completed the shipment and did not receive payment. The suspect has stopped answering emails and cannot be reached at the given phone number. Initial investigation determined the actual company in the email does not have an employee by that name and does not have facilities at either address listed in the initial email. Person(s) unknown altered the check of a business in the 3N700 block of Powis Rd. The check number had previously been issued and cashed as a payroll check. The same number check had later been altered to the amount of $9,050.00 and the recipient’s name was changed. The check had been deposited into an account in North Platte, Nebraska. Investigation is ongoing. Motor Vehicle Theft: Person(s) unknown removed a vehicle from in front of a church located in the 900 block of Main St. The owner had left the keys, his cell phone and miscellaneous tools in the unsecured truck and went into the church to do some work. When he returned, the vehicle was missing. The pickup was later recovered in Chicago and towed to the Police Station where it was processed for evidence. A number of tools were noted to be missing from the tool box(es). Person(s) unknown removed the victim’s vehicle from the 900 block of Windsor Ct. The vehicle was left unsecured with the key inside of the car. Officers responded to a crash in the 200 block of Ingalton Ave. where two individuals exited one of the vehicles and fled the scene on foot. While investigating the crash the owner of the vehicle returned, noticed the car was missing and called DUCOMM to report the vehicle as stolen. Investigation is ongoing. Burglary: Person(s) unknown entered the Shell gas station located at 1307 S. Neltnor Blvd. and removed $150.00 from a cash register. Entry had been made during overnight hours by burning a hole through the overhead plastic garage door. Investigation is ongoing. ===== PDF PAGE 90 ===== [Extraction: OCR (rendered-page OCR)] Person(s) unknown entered the gas station located at 60 W. Roosevelt Rd. An unknown pry had been used to force open the back door to the business as well as the door to a garage/shed behind the business. Removed from inside the gas station was a cash register containing $1,500.00. Taken from the garage/shed was a box containing $2,500.00 in cigars and glass pipes. Investigation is ongoing. Burglary from Motor Vehicle: Person(s) unknown entered an unsecured vehicle parked in the 400 block of Ridgeland Ave. Removed from the SUV were a wallet containing $300.00 U.S.C., $200.00 in Mexican currency, Fifth Third credit and debit cards and Chase credit and debit cards. An unsuccessful attempt was made by an unknown person to use the stolen Chase debit card. Theft Under $500.00: Person(s) unknown removed a package from the entranceway to an apartment building in the 500 block of Carriage Dr. The victim received notification that the box had been placed on the steps. When the victim went to retrieve the package, it was missing. The delivery consisted of a $250.00 pair of Nike shoes. Person(s) unknown used the victim’s rebate to make a purchase for $139.69 at the Menards located at 220 W. North Ave. Investigation is ongoing. Theft of Lost/Mislaid Property: Person(s) unknown removed the victim’s wallet from Aldi located at 978 N. Neltnor Blvd. The victim dropped his wallet in the store and when he returned to find it, the wallet was missing. Surveillance video showed a suspect pick up the wallet and leave the store with it. The wallet contained a driver’s license, identification and an unknown number of debit/credit cards. Investigation is ongoing. Person(s) unknown removed the victim’s lost wallet from the BP gas station located at 219 S. Neltnor Blvd. The victim’s wallet contained a debit card that was used at the same BP gas station for a $49.10 purchase and at the Speedway located at 1501 W. Roosevelt Rd. for a $96.03 purchase. Investigation is ongoing. Theft by Deception: Person(s) unknown telephoned the victim at his/her residence in the 300 block of Clayton St. The caller then threatened the victim with an arrest warrant. The victim became nervous and sent $400.00 via Western Union to a subject in Peru. Over the course of 13 days, the victim received a number of other similar phone calls and wired an additional $1,800.00 to various people in Peru. Deceptive Practice: Person(s) unknown cashed the victim’s check at an unknown Chase bank location. The check, in the amount of $382.81, was to be mailed by a former employer to the victim’s residence in the 200 block of Joliet St. The check never arrived, and when the victim inquired, was told that the check had been already been cashed. Investigation is ongoing. ===== PDF PAGE 91 ===== [Extraction: OCR (rendered-page OCR)] Monthly Totals Activities Jun Jul YTD Total Apr May 2021 2021 2021 2021 2021 2020 2020 Traffic 497 519 503 506 3,503 2,076 4,646 Stops Traffic 128 151 175 275 1,103 834 1,849 Citations Traffic 247 251 194 155 1,455 1,226 2,516 Wamngs Parking 437 424 373 230 2,445 722 1,293 Citations Traffic 46 79 81 54 450 377 700 Crashes 198 236 271 1,473 2,652 Reports an ===== PDF PAGE 92 ===== [Extraction: OCR (rendered-page OCR)] Officer Activities On July 2"4, Officers Kowalik and Moos were dispatched to the Train Depot, located at 508 Main St., for a possible fight. Upon arrival, two subjects were found on the middle platform with one of the person(s) lying on the ground. Officers noted that the subject on the ground was unresponsive and had no pulse. CPR was begun and a pulse was soon detected. A dose of Narcan was administered. West Chicago Fire Protection personnel arrived, took over care of the individual and administered a second dose of Narcan. The subject became responsive and was then transported to Northwestern Medicine Central DuPage Hospital. On June 7", the Department was contacted by School District 33 administrators. Video from one of the bus routes appeared to show a school bus aide strike a student in the head with a back pack. School Resource Officer Fuller interviewed the bus driver and learned that the bus aide had been yelling at the victim and that the aide also threw the backpack. When interviewed by Detective Peterson and SRO Fuller, the suspect admitted to yelling at the victim, pushing him down to pick up paper and throwing the backpack. On July 7", the DuPage County State’s Attorney’s Office approved a charge of Aggravated Battery in a Public Place against the offender, an arrest warrant was obtained for the suspect and he was arrested, fingerprinted, photographed and released from custody after posting bond. On July 25", Officer Moore conducted a traffic stop on an SUV for expired registration. The driver stated he had no driver’s license and could not provide proof of insurance. While speaking with the driver, a strong odor of cannabis was emanating from the vehicle. Asked if there was cannabis in the car, the driver provided a bag containing seven grams of cannabis and could not provide proof it was legally purchased or was being properly transported. Officers Winton, Mielke, Richards and Schoonhoven arrived to assist. As a result of the cannabis in the car, a search of the vehicle was conducted that resulted in the recovery of a loaded 9mm handgun and a second loaded magazine. The driver was placed under arrest, transported to the Police Station, interviewed and admitted the firearm was his and it was carried for protection. The firearm was run through the Law Enforcement Agency Data System (LEADS) and was reported as stolen. A consent search was conducted at the suspect’s apartment that resulted in the recovery of more cannabis and a shotgun. The DuPage County State’s Attorney’s Office approved charges of Aggravated Unlawful Use of a Weapon, Possession of a Firearm with No FOID Card, Possession of More Than 100 but Less Than 500 Grams of Cannabis, and traffic charges. The arrestee was fingerprinted, photographed and transported to the DuPage County Jail. 10