MWRD Receives Positive Retirement Funds Report for 2019

Metropolitan Water Reclamation District (MWRD) Board Meeting
August 6, 2020

Retirement Fund Report:  

• Item 48, 20-0636:  Had a 18.3% return on investments last year, putting it well above average.  Fund is at the highest valuation ever.  However, payments out exceeded contributions by existing employees.  Given that employees being hired now pay in lower contributions (and in turn will receive lower payouts) than those who are now retiring, expect that payouts will continue to be higher than contributions in the foreseeable future.  Why returns on investment are so important.  Good that the Board has been authorizing additional payments, such as the extra $20 million in March this year, to help shore the Fund up. For 2020, reported that at the end of the 1st quarter, the Fund was down by 17%, but has recovered much of the loss during the 2nd quarter. Now at minus 3.6%.  

Some Items Passed with Discussion:

• Item 49, 20-0590:  Added Juneteenth to the list of days that an employee can select from to use as an “Additional Holiday.”  
• Item 51, 20-0521:  Authority to commence statutory procedures to lease 5,097+ sq.ft. of District land located on southeastern bank of Collateral Channel at 3152 S. California, Chicago.  Deferred from July 16 mtg to allow neighborhood groups to weigh in.  Richard Golf from Lakeshore Recycling System reported during the Public Comment Period that the company had met with neighborhood group and had meeting scheduled with Friends of the River.  Ald. George Cardenes (12th ward) spoke in support.  Comm. Davis asked that contract include a provision that lessee will comply with all state and federal requirements, including those regarding emergency planning; that emergency contact information be posted at the site in both Spanish and English; and that the lessee have a Spanish-speaking person available.  
• Item 54, 20-0648:  Authorization to declare as surplus and not required for MWRD use and sell to the Illinois Department of Transportation 0.15 acres located south of the Cal-Sag Channel in Alsip, Illinois.  During Public Comments, Friends of the River said that it wants to make sure that this sale would not adversely impact the long-term goal of connecting 2 channels of water.  Comm. Garcia pointed out that if MWRD doesn’t sell, IDOT can instead use eminent domain to acquire.  
• Item 57, 20-0623:  Intergovernmental agreement with Cook County Forest Preserve for a green infrastructure retrofit of a parking lot in unincorporated Proviso Township.  The permeable pavers and bioretention areas to be constructed are expected to mitigate flooding in the area.  MWRD contributing a little less than half ($203,107) to the total expected cost of $486,215.  Comm. Garcia asked about participation goals by the Forest Preserve, which are actually higher than the MWRD’s with respect to MBE/WBE.  Comm. Garcia wants to have a separate discussion in the future on the MWRD requiring other entities to use the MWRD goals, if the other entity’s goals are not higher, for the entire project, not just for the amount contributed by the MWRD, as currently provided. 

Items to Watch for at Future Meetings:
Items Deferred:

• Item 18, 20-0622:  Authority to advertise for professional services to market EQ (Exceptional Quality) Biosolids.  Comm. Garcia continues to be troubled that the District doesn’t have a single person/department overseeing a comprehensive strategy for dealing with bio-solids.  Also troubled by the lack of participation goals and would like an estimated return on investment.  Other Commissioners wanted to move forward because MWRD does not have marketing expertise and needs help, particularly given the elimination of trade shows due to COVID.  Comm. Morita also asked for staff memo to be prepared on where the District is with regard to the bio-solid program. 
• Item 30, 20-0602:  Authority to award contract to furnish janitorial supplies.  Comm. Garcia deferred and wants to know how many MBE/WBE, etc. entities participated and whether other government entities have goals for this kind of contract.  President Steele pointed out that this is a “furnish and deliver” contract which, under current Board rules, does not need participation goals.  However, this is part of the ongoing discussion regarding a possible modification of the Affirmative Action Ordinance.

Items Deleted:

• Item 11, 20-0591:  Authority to advertise for professional services to conduct facility needs studies for Hanover Park and Lemont Water Reclamation Plants.  Comm. Shore concerned that it has only been 10 years since the last Master Plan and Executive Director agreed that normally would expect a Master Plan to have a useful life of at least 20/30/40 years.  But main issue is the Comm. Shore wanted the scope to be expanded to include study of inflows during rain events.  Deleted, rather than deferred item so that scope could be expanded (which may also impact cost).
• Item 27, 20-0631:  Authority to issue purchase order for creation of Stormwater Master Plan for Avalon Park, Englewood, Greater Grand Crossing, and South Shore Study Area. (Deleted by Exec. Director, no discussion.)

Potential Amendment to the Ethics Ordinance:

• Comm. Davis said at the end of the meeting that he has heard from a number of non-profit groups that do not lobby for themselves, but for the public good, that they are being hurt by being treated as “lobbyists” and required to pay fees under the current Ethics Ordinance.  He would like to fine-tune the ordinance, but wants to have a Study Session at least 30 days after any proposed amendment to allow time for public comment.

Length of Meeting:  4.5 hours (including 70 minute Executive Session before last hour of meeting)

Observer - Priscilla Mims