Metropolitan Water Reclamation District (MWRD) Board Meeting
​September 15, 2022

President Steele began the meeting by reading a statement requesting that the Executive Director  pause the free EQ Biosolid distribution program.   She stated that she believed the MWRD is following the EPA rules regarding PFAS but wants this pause to ensure that the District remains compliant, environmentally friendly, and mindful of public concern.  (See second item under new business.)
Two agenda items were pulled for discussion:

• Authority to advertise Contract 22-483-11 to provide co-location services for District infrastructure, estimated cost $300,000. Commissioner McGowan asked for further information about why it is a co-location service.   The contract is for a service that will house some of the Districts IT equipment, providing proper environment and for moving the equipment.  The provider has other clients in the same location.   Commissioner McGowan also asked about the affirmative action requirements for contracts.     It was not included because moving IT equipment is a very specialized service. (Agenda Item #11-22-0801)
• Authority to issue a five-year permit to the U.S. Dept of Agriculture to access MWRD land to study Canada Geese and prevent their interference with air traffic at Midway Airport.  The nominal fee is $10.   Commissioner Spryopoulos asked for more information on what are the challenges in this process and what methods the USDA will use in controlling the geese.  A report will be provided to the Board. (Agenda Item #34-22-0831)

All 39 agenda items were approved.

Stormwater Management:

• Authority to amend an Intergovernmental agreement with the Berwyn Park District for the construction, operation and maintenance of a green infrastructure project in Berwyn. (Agenda Item #39-22-0837)

New Business

• President Steele announced that the MWRD employees were collecting donations for bottled water for the Village of Dixmoor while its water system is being repaired
• Commissioner Davis requested that an item be put into the budget to fund measuring PFAS chemicals at the source.
• Commissioner Davis asked Executive Director Perkovich to explore how the MWRD can use funding provided by the Federal Infrastructure Act  to reduce its carbon footprint.  Mr. Perkovich will report next month on taking advantage of the funding.
• Commissioner Corral-Sepulveda thanked the MWRD staff that helped with the Monarch Butterfly event at a Berwyn park.

Observer:  Kathi Graffam         Length of meeting: 1 hour 15 minutes          No Executive Session was Held

Metropolitan Water Reclamation District (MWRD) Board Meeting
September 1, 2022

(Agenda Item #10 - #22-0766) A request to increase the cost estimate for rehabilitation of the Upper Des Plaines Intercepting Sewer to between $28,500 and $34,500 million was pulled by Commissioner Garcia to discuss the possibility of separating out the parts of the contract that cover Furnish and Deliver items that could have Affirmative Action Plan (AAP) goals attached.  Dr. Berry of the AAP Department noted the following:         

• The District needs to add Furnish & Deliver (F&D) to its Ordinance which has not yet been done.
• Often there are no sub contractual F&D parts that can be assigned goals.
• Her department sees only those F&D contracts over $100,000. 

Three additional agenda items were pulled for discussion.

• #17 – A contract for consulting services to conduct a “machine learning study and develop a conceptual plan for mitigating orders at the Thornton Composition Reservoir at a cost estimate of $150,000”.  Commissioner Sepulveda suggested including data from the surrounding community into the Plan and asked how that would be done. She asked that the MWRD consider meeting in-person with surrounding businesses and residents to obtain more information regarding the odor problem.  #22-0750
• #46 – Staff requested authorization to enter into a memo of understanding with the Danish Water Technology Alliance represented by the Consulate General of Denmark located in Chicago and Aarthus V and A/S of Denmark to engage in a knowledge exchange program.  Commissioner Spyropoulos pulled the item to specifically support this effort and to thank the staff for pursuing it.  Commissioner Sepulveda hoped that there would be a like opportunity to work with Thailand, a country she recently visited.  #22-0757
• #55 – A request to amend the intergovernmental agreement with the City of Northlake for the acquisition of flood-prone properties.  There was no discussion on the amendment itself, but Commission Garcia asked for a list of lands acquired for this purpose.  This is a repeat of his request during the August 18 Land Use Study Session as he would like to include these statistics in what goes out to the public stating how much land the MWRD either leases for recreational purposes or works with communities to restore/mitigate land for flood control purposes.  The Legal Department stated that a map of those communities where MWRD does work and then the communities take over the maintenance will be available in the next three weeks.   #22-0787

All 57 agenda items were approved.

Stormwater Management: 

• Four items were approved either for property acquisition or agreements to undertake flood control construction. #54 - #57.

New Business: 

• Commissioner Davis thanked the staff for its continued efforts to obtain electric vehicles. 
• Commissioner Sepulveda thanked E.D. Perkovich for extending an invitation to Thai leadership to visit MWRD facilities.
• Commission Garcia noted that the MWRD’s bond rating from finance agencies increased from AA to AA+.

No Executive Session was held.

Observer:  Diane Edmundson                                                 Length of Meeting:  55 minutes

Metropolitan Water Reclamation District (MWRD) Board  
Study Session on Land Use (Leasing) and  Environmental Justice Policies
August 18, 2022

The stated purpose of the study session was to discuss the two proposed policies and to get input from the Board and members of the community.  All commissioners were present. The session was called to order by Commissioner Garcia, chair of the Land Use Committee. 

Land Use (Leasing) Policy
The Legal Department was asked to start with a slide presentation. A few highlights of this presentation include:

• Public recreational leases make up approximately 80% of the District's leased land, providing trails, parks, and natural area and offering over 500 acres of open space to the public.
• Commercial/industrial leases generate between $25-$28 million a year in leasing revenue, support local jobs, and provide an important tax base for local communities.
• Leases along the channels support over 4,000 jobs.  The Sanitary and Ship Canal has the highest percentage of corporate [MWRD] and commercial and industrial users.
• Almost all of the North Shore Channel and the vast majority of the Cal-Sag Channel are used for public recreation.

Commissioners' Questions/Comments:

• President Steele noted that the first Land Use Policy was established in 2015 and she is interested in hearing public comments.
• Commissioner McGowan noted that the District already has an extensive land use criteria in place.
• Commissioner Spyropoulos said that the policy should react to the needs of the communities involved and the changing dynamics of the board.  She asked if “fiscal impact” could be added to the criteria list.  The General Counsel said that it is already part of the process both from the perspective of the District and the local community, and Yes it could.
• Commissioner Morita requested that the new “Environmental Justice Policy” be moved to a higher place on the criteria list.  She asked how the District is currently assessing risk and previous problems with potential leasing entities - what else besides performance and indemnity bonds.  She then suggested that the MWRD do an audit/assessment of its land holdings under the framework of environmental Justice.
• Commissioner Davis asked how the public comments would be considered for amendments to the two polices and was told that they would be reviewed and included in amendments.  Davis also noted the phrase “disproportionally impacted areas” which was used in the Disparity Study seems to have been left/replaced with “minority and low population" which could have constitutional problems.  Two other comments:  1) The open space policy should be extended beyond wealthy communities namely, the North Shore; and 2) The Land Use Policy should be more about open space and squeezing out as much as possible for public benefit.
• Commissioner DeBuclet requested that the 3-year formal review suggestion contained in a letter from the League of Women Voters of Cook County (LWVCC)  be added to the policies. She also asked if the District received revenues from its recreational leases and was told YES – 25% of any generated revenue but the total amount is minimal.  Another question, “is urban agriculture a part of the leased land”.  Answer:  Yes, but there isn’t a need for a separate category as it is very site specific.
• Commissioner Sepulveda commented on the criteria review process itself.  She noted that the phrase DIA [Disproportionally Impacted Areas] should be used; but most important there needs to be data indicators and metrics to measure the MWRD’s success in this area.  The RFP is the time and place to add this measure.
• Commissioner Perry said that she echoed the other commissioners’ comments and also asked the question, “how can the District create shareable information on its vision when opportunities become available”.

Environmental Justice Policy

• The Legal Department stated on its slide that the “proposed policy is based on the U.S. EPA’s definition of Environmental Justice:  the fair treatment and meaningful involvement of all people regardless of race, color, national origin or income with respect to the development,implement-tation, and enforcement of environmental laws, regulations, and policies.  Fair treatment was defined to mean that no group of people should bear a disproportionate share of the negative environmental consequences resulting from the District’s operations or policies.”….
• Commissioner Morita noted that the Land Use Environmental Justice Policy should only be a policy – followed by a “process or guideline document.”
• Commissioner Sepulveda said that “air pollution” should be added to impact.  She also said that addressing the historical impact of racism is important and how goals are developed should include measures that can be used for accountability purposes.
• Commissioner Garcia asked if land purchased for Stormwater Management counted as MWRD land.  The answer:  Generally, NO as the property is often turned back to the community to be maintained once the work is completed. 
• Commissioner Garcia also noted that this August 18 Study Session’s focus is only on land leasing criteria and the new Environmental Justice Policy not land use in general.

Public Comments
There were 16 total in-person public speakers and several written comments sent to the Board Secretary.

• Eight (8) Business and commercial associations covering business and shipping.
• Three (3) Environmental groups [Friends of the Chicago River and 2 Urban Agricultural organizations.  Friends suggested adding a Land Use Director to the payroll.
• One (1) real estate appraiser and 1 real estate lawyer [2 total]
• Three (3) local community leaders

Points Made:

• Chair Garcia, noted that the Chicago Civic Federation provided a written response recommending adding “fiscal impact” to criteria.  
• All of the business, shipping, and association speakers spoke to the benefits of leasing land to them and urged the MWRD to continue its leasing policies.
• The environmental lawyer noted that the MWRD requires that when a piece of leased land is returned it must be restored to Residential requirements.
• The unincorporated land areas around Lemont should be included in the MWRD coverage area.
• One barge is the equivalent of 22 semi-trucks being removed from use and putting CO2 into the air.    More trucks are off the road because of tug boats land barges.  Safer and better for the climate.  Barges are also used by one waste hauler to move waste down the channel to trucks that go a short distance to a landfill.

Observer:  Diane Edmundson

Metropolitan Water Reclamation District (MWRD) Board Meeting
August 11, 2022

Board Action of Note:

• Item 31. # 22-0657 The Board awarded a $16.356 million contract to IHC Construction Companies for work at the District’s Chemical Phosphorus Removal Facility, Calumet Water Reclamation Plant. The information provided did not specify if the work was for expansion, re-design, or repairs.
• Item 33. # 22-0687 Commissioner Spyropoulos pulled this $12.3 million repair and alterations item from the agenda for discussion, then returned it for board approval.  This was a new version of the contract, divided into groups, and she asked about the differences.  Executive Director Perkovich explained the groupings were based on geography.  The Board agreed to award Independent Mechanical Industries, Inc. all three sections of the contract.
• Item 49. # 22-0721 The Public will be interested to know the MWRD continues its cooperation with the City of Chicago’s Department of Public Health that began as a result of COVID.  The Board approved permits for the Health Department to continue accessing the District’s sewer systems in Chicago to install and maintain sampling devices as part of its wastewater surveillance project for pathogens of public health concern. 

Stormwater Management

• Item 10. #22-0678   The Board approved an amendment to a June 2, 2022 approval to increase funding to $5.2 million dollars for a contract being advertised for Small Streams Maintenance in Cook County. The District is tasked with clearing debris and windfalls from the County’s small streams to prevent flooding.
• Item 14. #22-0673 The Board also granted authority to advertise a contract in an amount ranging between $57.1 million and $69.1 million for Addison Creek Channel Improvements; an on-going project of the District.

New Business

• Commissioners congratulated the MWRD Public Affairs Office for winning an award for the District’s children’s book, “Where Does It Go?” published in 2021.

Commissioner Requests

• Item 9. #22-0625 The Board authorized payment of its $100,000 annual membership dues to Current Innovation, a not-for-profit organization co-founded by the District. Current Innovation conducts water-related programs and research, and promotes public involvement in water issues. Commissioner Garcia pulled this item for discussion and then returned it to the agenda.  The Commissioner praised the organization, then noted the MWRD cannot provide grants to communities. He asked Executive Director Perkovich to explore the possibility of the District paying participation fees to communities and community organizations engaged in efforts relating to the District’s goals.  The Executive Director agreed to explore this idea and report back to the Board.  

Executive Session:

• Yes, the bulk of the meeting was an executive session to discuss closed meeting minutes.

Observer - Laurie Morse           

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