Metropolitan Water Reclamation District (MWRD) Board Meeting
July 14, 2022

James Mohler, President of the MWRD Retirement Fund, had good news for the MWRD Board on the status of the Retirement Fund at the end of 2021:

• Both the actuarial and market value of the assets achieved record highs.
• The actuarial funding ratio continued to improve to 58.7%, up from 57.3% in 2020 and 50.4% ten years ago.
• The net pension liability dropped by $224 M over the last 3 years.
• The Fund’s annual net rate of return has exceeded the Actuarial Assumed Rate of Return over the last 3 years, and has a cumulative 3-year return of 14.2%.
• Of particular importance to Mr. Mohler, the Investment Expense Ratio dropped by 10 points, saving approximately $1.6 M in yearly expenses.
• Mr. Mohler also noted that the Fund is above the MWBE utilization targets.

Nevertheless, Mr. Mohler stated that there are future challenges that include

• Growing annual operating cash flow deficits, projected to be close to 7% of Fund Reserves in 5 years.
• Continued elevated numbers of retirements which result in cash going out vs. lower numbers of new employees being hired who pay into the Fund.
• Future market corrections (such as what is being experienced now) can reduce the Reserves.

Mr. Mohler praised the Board for its additional contributions over what the Actuarial Determined Contribution over the past several years.  Those additional contributions have been rewarding.  (Agenda Item 42, No. 22-0630)

Board Action:

• All items on the Consent Agenda were passed with one exception.
• Commissioner Corral Sepulveda deferred Agenda Item 15 at the request of Commissioner Garcia, who was absent.   This item is an authorization to make payment to Current Innovation, NFP for the 2022 annual membership dues of up to $100,000.  (No. 22-0625)

Board Discussion:

• Commissioner Davis raised questions regarding Agenda Item 26, and continued the discussion regarding Item 35, as to how the MWRD staff determines when to reject a bid as being too high as compared to the contract estimate in this time of fast rising prices due to inflation and supply chain issues.  Item 26 was authority to issue purchase order to the low bidder for furnishing electric motors, pumps, drives, breakers and transformers at locations under Group B.  Such bid was 11% below the contract estimate.  Single bids received for Groups A and C were rejected as too high as they were 46% and 113% over the contract estimates, respectively.  No bid was received for Group D.   (No.22-0628)
• Director Perkovich said that in this case, one of the considerations by staff is that there was a single bidder for Groups A and C.  The overall consideration is whether staff thinks that by rebidding the contract (and possibly tweaking it to entice more bidders) future bids will come in lower than the bids being rejected.

New Business:

• Commissioner Perry asked that the Board do more to publicize PFAS (polyfluoralkyl substances found in chemicals which may pose health problems) and what the MWRD is doing about them.  President Steele asked her to take the lead on working with Public Affairs.  Director Perkovich said that these PFAS are a national project and that it makes more sense to deal with the source, rather than trying to remove them from water.
• Commissioner Davis thanked staff for unbundling a contract so that it can be rebid in multiple parts. He said such unbundling both provides a safety net if the price of the items goes up and increases the likelihood of MWBE participants.  
• Commissioner Davis also verified the dates for developing the Board’s legislative agenda for 2023.
• Commissioner Corral Sepulveda thanked the Board for the opportunity to represent it at a Water and Waste Management Conference in Thailand.  She said she is hoping to follow-up by having Thai officials come here, particularly the Education Minister so the MWRD can learn more about that Minister’s efforts to engage youth in water management issues.

Observer:  Priscilla Mims

Metropolitan Water Reclamation District Board Meeting
June 16, 2022

All items on the agenda were approved. Items of note are as follows:

• Jodi Dobson, Partner at Tilly Baker gave a positive presentation to the Board on the Report on the 2021 Annual Comprehensive Financial Reports of the Metropolitan Water Reclamation District of Greater Chicago and the Metropolitan Reclamation District Retiree Healthcare Trust. (Agenda Item #6, 22-0572)
• Authority to award a contract to Joel Kennedy Constructing Corp for the north side sludge pipeline replacement not to exceed $27.1 million. (Agenda Item #25, 22-0539). This item was deferred from the June 2, 2022, Board Meeting. Discussion follows.

Procurement Item Discussed:
 The Commissioners spent most of the meeting discussing this item. (Agenda Item#25, 22-0539) Commissioner Cam Davis stated that he had questions about responsible bidders.   Commissioner Davis is concerned as to whether this company can be a responsible bidder after the accusations from the City of Chicago of fraudulent billing and other issues. Commissioner Davis questioned Inspector General Patrick Blanchard on responsible bidders and whether there was justification for finding the contractor not a responsible bidder. Inspector General Blanchard stated that they did a thorough investigation, and it was determined that the Contractor was not a responsible bidder for City of Chicago. Commissioner Davis wanted to know if the Contractor could be a responsible bidder for MWRD but was told MWRD would have to determine this. Blanchard recognized that this was a difficult task. Commissioner Garcia as did other commissioners, wanted to be reassured that the bidding process was a fair and good process. He asked the Dir. Of Procurement, Legal Counsel and Dir. Of Engineering to answer. They stated that there are criteria that needs to be followed to procure a contract. They also reassured the Board that with all contracts they carefully follow the procedure before awarding contracts. Kennedy Contractors were the lowest bidder, and it was a fair and legitimate bid. The following were suggestions by Commissioners:

• Commissioner Garcia requested staff to consider expanding on the monitoring of contracts
• Commissioner Davis requested estimates on staff time to monitor contracts
• Commissioner McGowen requested the Lowest Responsible Bidder section (11.11) of the district’s code to be distributed to the Board.

There was no mention at this meeting of a study session planned to review the Procurement Policy. After much discussion Commissioner Davis asked for a roll count vote for this item. The vote was taken and there were 5 yes, 3 no and 1 present. This item was approved. 

Miscellaneous and New Business:

• Commissioner Eira Corral-Sepulveda joined the meeting by remote as she is representing the MWRD in Thailand at the Water and Waste Management Conference.
• On July 14 there will be a study session on Affirmative Action Policy/Disparity.
• Land Use and Climate Change Study session has not been scheduled but the Commissioners believe it will be held in August or September.

Observer: Nancy Marcus

Metropolitan Water Reclamation District Board Meeting
June 2, 2022

MWRD Commissioners had questions on several procurement items on the agenda which led Commissioner Morita to opine that a study session needed to be held on Procurement, adding to the study sessions already identified as being needed for Affirmative Action Policy/Disparity Study (scheduled for July 14), Land Use Policy, and Climate Change.  Commissioner Morita and President Steel again urged that the Commissioners find times on their calendars for these study sessions.

All items on the agenda, including the extension of the existing MWRD Affirmative Action Policy from June 30 to December 31, 2022, were approved, except for Item 27, 22-0539, which was deferred and is described immediately below.

Procurement Items Discussed:

• An awarding of a contract for north side sludge pipeline replacement for $27.1 million was deferred by Comm. Davis because of his concerns as to whether the company is a “responsible bidder” because Chicago has an outstanding legal action alleging the company falsified documents.  This led to a conversation of what is asked of bidders, including whether they are asked about any outstanding legal actions against them.  The Board was told that the MWRD does not ask that normally, though in this case, because it involved grant money, the grant form included that question.  And the company did disclose the Chicago lawsuit.  The Executive Director also said that the accusation involved claiming that all employees involved lived in Cook County (which they did not) which took place in 2015.  The other issue here was the fact that the MWRD estimate was 33% lower than the bids.  Comm. Garcia and Comm. Davis both have concerns that providing the estimate to bidders may cause the bids to come in higher than they otherwise would.  The Procurement Director thinks making the estimates public is useful because of the complications resulting from so much of the work at the MWRD being underground.  Near the end of the conversation, the Procurement Director said that a state statute applies which sets out what is a “responsible bidder.”  (Item 27, 22-0539)
• Comm. Davis expressed concern that suppliers may think that the MWRD will not pursue breaches of contract with regard to a furnish and deliver contract for Calcium Nitrate.  In this case, the low bid was rejected because the supplier would not agree to hold the price beyond one year for this 2-year contract.  Executive Director Perkovich assured the Board that the MWRD will hold the supplier who won the bid responsible and the contract is clear that the price is for 2 years.    (Item 19, 22-0511)

​Stormwater Management Items

• Comm. Davis commended the Executive Director and staff for working with the Cook County Forest Preserve District in connection with a request for authority to amend a Memorandum of Understanding to extend it for one year to allow time to negotiate a new intergovernmental agreement with the Forest Preserve that would be more comprehensive and facilitate more partnerships between the entities on flood control and green infrastructure projects.  (Item 35, 22-0530)
• In connection with the intergovernmental agreement with the Village of Lyons for acquisition of flood-prone properties, with the MWRD to pay up to $3 million, it was explained that the MWRD has a sliding scale of what it is willing to contribute to local governments, based on the average income.  (Item 37, 22-0533)
• Intergovernmental agreement with the Village of Winnetka for a wetland and park storage project, with the MWRD to contribute up to $500,000.  (Item 36, 22-0532)
• Intergovernmental agreement with the City of Des Plaines for a pervious concrete alley improvement project, with the MWRD to pay up to $139,000.

Other Item Discussed:

• Comm. Davis applauded the Executive Director and Staff for pursuing a lawsuit against a company for unlawful discharges which led to a Settlement that was before the Board for approval.  There was also some discussion as to why the MWRD did not initially seek the maximum penalties.  It was explained that the company did acknowledge the discharges and did take some action during the period, just not fast enough.  (Item 31, 22-0537)

New Business:

• Friends of the Chicago River gave the MWRD a Green Ribbon Award for the Natalie Creek Flood Control Project which protects 237 structures and residents in Midlothian and Oak Forest.  This award recognizes projects that demonstrate a high level of river-sensitive design and consideration.  See https://mwrd.org/natalie-creek-flood-control for more information about the project.

Observer:  Priscilla Mims

Metropolitan Water Reclamation District (MWRD) Board Meeting
May 19, 2022

Public Speaker:

• A representative from the Sierra Club was the public speaker and he wanted the MWRD to be aware what is planned for the wetlands located on 55 acres near Rodenburg and Irving Park roads next to the Schaumburg Metra Station.  In 2018 the village of Schaumburg sold this land to Experior Transportation and the plan is to build a corporate headquarters, warehouse space and fueling station with storage tanks for trucks on top of the wetlands.  This will upset the natural ecosystem and destroy the natural flow of water, disperse wildlife, leaks in fuel storage tanks could contaminate underground water table, and the neighborhood and school will be exposed to polluted air.

​Board Action:

• The Board passed a resolution recognizing May as Asian/Pacific American Heritage Month and honored Asian Americans Advancing Justice Chicago, a nonprofit organization that has a “mission to advance civil and human rights for Asian Americans and to build and promote a fair and equitable society for all.”
• MWRD received the Government Finance Officers Association Distinguished Budget Presentation Award for its 2021 budget.  A budget that is comprehensive and understandable improves transparency for residents and assures that tax dollars are being spent appropriately.  To win this award MWRD leaders and the financial team met demanding criteria showing their commitment and professionalism.
• The board approved authority to advertise a  $11.4 million contract to furnish and deliver polymer.  Polymer is used in the wastewater treatment plants to create larger waste particles that can separate from water and to help manage the process of drying and condensing  biosolids.  The use of polymer makes the treatment process more efficient and cheaper.
• Commissioner Davis brought up the subject of rain barrels.  These barrels capture rainwater from roofs and keep this water out of the sewer system helping to prevent sewer overflows and flooding.  Rain barrel water is naturally free of chlorine, lime and calcium.  Rain barrels can be ordered from MWRD.

Observed by  Michele Niccolai

Metropolitan Water Reclamation District (MWRD) Board Meeting
May 5, 2022

Commission McGowan opened the meeting by calling for the deletion of the proposed amendment to the Affirmative Action Ordinance without discussion until the Board holds a Study Session on the recent Disparity Report.  No date has been set.  All nine commissioners voted to delete without discussion. Agenda Item #1 022-006.)    

Only two other items were pulled for discussion.  Both because the market rate for chemicals, in this case Sodium Hypochlorite and Magnesium Chloride, is widely fluctuating and the vendors do not want to commit to more than a year’s rate.  Hence, they will have the opportunity to rebid the rate for year two of the contract.  After an explanation that during each contract year, the rate would remain the same regardless of market conditions, the items were returned to the agenda. (Agenda Items #13 22-0397 and #17 22-0425.)

All agenda items were approved with the exception of Item #1 above and two others that were deleted by the Executive Director without discussion.

There were no Stormwater Management contracts on the agenda. No Executive Session was held and no New Business was offered

​Observer:  Diane Edmundson

Metropolitan Water Reclamation District (MWRD) Board Meeting
April 21, 2022

At the prior meeting, Commissioners said a study session on a comprehensive study on the MWRD’s land use is needed in order to evaluate some proposals for leasing MWRD parcels.  At this meeting, the need for a study session on and a supplement to the Disparity Study was highlighted, and a proposed amendment to the Affirmative Action Ordinance was deferred.  President Steele ended the meeting urging Commissioners to coordinate their calendars so separate study sessions on each could be held very soon.

Proposed amendment to the Affirmative Action Ordinance to revise Appendix D to prohibit a prime contractor from utilizing its status as a Minority-owned Business Enterprise (MBE), Woman-owned Business Enterprise (WBE), or Small Business Enterprise (SBE) toward fulfillment of participation goals.  (Item 1, O22-006) 

• Many of the MWRD’s contracts call for stated percentages of MBE/WBE/SBE participation in the work done under the contract.  Currently, if the winner of the contract as the prime contractor is also one or more of these entities, that prime contractor’s status can be counted toward fulfillment of the required percentages.
• 4 speakers, 3 of whom represented associations of MBE/WBE/SBE entities, all expressed grave concerns and/or outright opposition to the proposed change.  As they explained, if an MBE, WBE, or SBE wins the contract as a prime contractor, there may not be other such entities which can perform part of the work.  One of the woman speakers owns a trucking firm, and said that she would not be able to find another woman-owned trucking firm to fulfill the WBE goal that would be set under the contract, so she needs to be able to count her business as meeting the goal. 3 of the speakers asked that the item be held until the Disparity Study was completed and made public.
• Comm. Garcia asked whether Collette Holt, the outside consultant who took the lead on the Disparity Study, has reviewed the proposed amendment.  Dr. Regina Berry, the Diversity Officer, said that Ms. Holt had reviewed this and did opine there were alternatives to achieving the goals of this amendment, though no specifics were given. 
• Comm. Garcia asked for a report from Ms. Holt based on Dr. Berry’s answer, and also asked for a supplement to the Disparity Study, which has obviously been circulated to the Commissioners, regarding LGBTQ and people with disabilities, as well as reviewing whether to expand the Affirmative Action goals to include furnish and deliver contracts (currently exempt).
• While there was discussion about deleting the item so it could potentially be revised and resubmitted at a future meeting, Comm. Morita requested deferral instead, which means it would come back to the Board without any changes.

Deferred or deleted items:

• Comm. Corral Sepulveda questioned the proposal to seek bids for two contracts of $8 million each to provide services as needed for construction or repair of District infrastructure for 3 years starting on Sept. 1, 2022.  A similar proposal for a single contract of $8 million for 2 years had come before the Board on Feb. 17, when the Commissioners asked that it be revised so more vendors could be involved.  Under this proposal, the contract was split between District property on the north and south side, allowing two different vendors to win the prime contract.  However, Comm. Corral Sepulveda said that she would like the contract to be further divided in order to be able to attract MBE/WBE/SBE entities, which often find access to capital to be one of their greatest barriers.  Comm. Garcia’s motion to delete this item passed.  (Item 11, 22-0378)
• Comm. Spyropoulos questioned why a bidding process to furnish and deliver sodium hypochlorite, a disinfectant, had a contract term of only 6 months.  Exec.Dir. Perkovich explained that vendors had told the MWRD that the price for such product is so volatile now that vendors would not be willing to lock in a price for a longer term.  This item was deferred.  (Item 15, 22-0397)
• Also deferred at the request of Comm. Spyropoulos was a proposal to seek bids to provide legal services for bankruptcy and collection matters for 2 years starting on Jan. 1, 2023.  

Also discussed:

• Proposed contract with ComPsych Behavioral Health Corp to provide telephonic counseling, tele-behavioral health services, and up to 8 face-to-face counseling sessions per employee for a 5-year period starting July 1, 2022.  Comm Davis thanked the staff for negotiating this because after the last several years, this service for employees was particularly needed.  A similar service has been provided, and data shows significant usage by employees over the first 3 quarters of 2021. (Item 19, 22-0373)

Stormwater Management Items passed:

• Authority to award a contract for a diversion channel for a flood control project on Midlothian Creek in Robbin for an amount up to $10 million (including a 5% allowance for change orders).  (Item 25, 22-0381)
• Authority to negotiate an agreement with Lyons Township and the Illinois Department of Transportation in connection with a flood control project along the Plainfield Road Corridor. (Item 33, 22-0395)
• Authority to amend an agreement with the Village of Western Springs for storm sewers and outfall to Flagg Creek in Western Springs.  (Item 34, 22-0394)
• Authority to negotiate an agreement with Maine Township, Maine Township Road District, and City of Park Ridge for a flood control project on Farmers and Prairie Creeks.  (Item 35, 22-0395)

Observer:  Priscilla Mims