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MWRD Board Approves Contract For North Side Sludge Pipeline

6/19/2022

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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
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Commissioners Question MWRD Procurement Practices and Policies

6/19/2022

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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
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  • Home
  • About
    • LWVCC Interest Groups >
      • Cook County & MWRD Group
      • Criminal Justice
      • Cook County Health
      • Forest Preserve Interest Group
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