Metropolitan Water Reclamation District  
Public Hearing on 2021 Tentative Budget
December 2, 2020

7 Commissioners present, with Comm. Garcia absent. 

There were 3 comments.  
Both Ryan Wilson of the Metropolitan Planning Council and John Legg of the Nature Conservancy separately urged that the MWRD appoint one person to head-up and be the point person for the MWRD’s Stormwater Trading Pilot that was adopted earlier this year.  While the failure of any developer to take advantage of this program may be due to COVID, both entities feel that having one dedicated person to head this pilot is crucial for its success.  Both also pointed to the Washington, D.C. project as an example of all that needs to be done to successfully launch the program.  The duties of this point person would include conveying consistent messaging to municipalities and developers and identifying barriers to getting the program launched, including any legislative barriers.  

• The Executive Director and Dr. Katherine O’Connor, the head of Stormwater Management, believe that they have sufficient people to implement the program and were reluctant to place a single person as a point person, though they were still willing to talk about this.  Comm. Morita suggested that even if a single person would not be working on this full-time, maybe a single person could be identified for communications with municipalities and developers.

Chelsey Grassfield of the Friends of the Chicago River urged that the MWRD reassess its real estate holdings of 6,000 some acres for use as stormwater management, as opposed to being looked upon as development opportunities.  Comm. Morita said that the MWRD has begun a land-use audit to look at best use for the land:  lease-out vs. leaving vacant for stormwater management.  Ms. Grassfield also stated that Friends had observed some instances at meeting where the attorneys representing the MWRD stated things that appeared to be inconsistent with MWRD policy.  The Commissioners and Executive Director wanted more details, which Ms. Grassfield said she would provide.

Observer:  Priscilla Mims                                         Length of meeting:  1 hour, 10 minutes

Special Meeting of the MWRD’s Committee on the Budget & Employment
November 5, 2020

On October 13, the Executive Director presented his 2021 budget recommendation.  At today’s meeting, the Committee voted to accept some slight increases to that recommendation, which still result in a small overall decrease from 2020 of 2.1% currently.  The proposed 2021 tax levy may increase by 1.1%.  However, all numbers could still change before final approval of the budget, scheduled for December 17.
Next steps:

• Commissioners to provide further ideas for the budget to President Steele, which are incorporated into a second set of changes.  Upon approval, these are included in what is referred to as the “Tentative Budget” which will be posted on the web site.
• Dec. 3 at 2 pm:  public hearing for the public to weigh in on the Tentative Budget
• December 10 (time not yet set):  Special meeting to consider the Tentative Budget with any further changes
• December 17 at 10:30:  regular Board meeting, with one last opportunity to further amend the budget

Proposed budget as it currently stands (incorporating changes approved on Nov. 5);

• Total appropriation request:    $1.127 B, decrease of $24 M from 2020, or 2.1% reduction
• 2021 estimated tax levy (a portion of the total appropriation):  $658 M, increase of $7 M from 2020, or 1.1% increase of levy.  However, the estimated cost per $100 of Equalized Assessed Valuation (EAV) is 23.61 cents for 2021 vs. 23.90 cents in 2020
• Total positions:  1,938, a decrease of 15 positions from 2020
• If the past is any indication of the future, these numbers will likely go up with further revisions

At this meeting, all major department areas of the MWRD presented highlights of their accomplishments in 2020, along with key initiatives for 2021, all of which are reflected in the Executive Recommendation, as amended at this meeting.  These areas include:
Stormwater Management Fund  --

• There continues to be an issue with levies greater than what is being spent.  MWRD’s responsibility for storm-water management began in 2004, with bonding authority received in 2014.  It takes a long time to identify and implement projects.  2021 levy will remain flat.  COVID responsible for delaying or cancelling some projects in 2020.  
• Comm. Shore recommended a placeholder be added to the budget for someone to help get the Stormwater Trading Project going and oversee the rollout.
• Comm. Du Buclet asked whether there has ever been a study on racial impact.  Not based on race, but there is a map reflecting disproportionate impacted communities (focus on income, not race).  MWRD using this to develop where shove-ready projects should be identified.  
• Comm. Avila reminded that MWRD only has jurisdiction in Suburban Cook County as Chicago has its own stormwater management operation.

Monitoring & Research – included in 2020 highlights was providing samples of wastewater for surveillance for Covid-19

Procurement & Materials Management – moved up and fully implemented electronic bidding and signature process as a result of needs due to COVID-19

General Administration – Planned space\use study halted due to COVID; no provision to do this in 2021 budget.  In Diversity section, President Steele said she wanted to add a position.  Plan is to conduct an affirmative action disparity study for purposes of evaluating MWRD’s Affirmative Action Policy.  With regard to Public Affairs, Comm. Du Buclet asked how the MWRD can be more visible to the public.  Comm. Garcia wants translator to appear at more events.

Board of Commissioners (includes Treasurer and Legislative Section) – Comm. Shore would like to put excess funding released from TIF districts toward Retirement Fund, as was done last year.  Told would be done.  Currently expecting $19 M.

​Retirement Fund – at 56% funding and holding steady

Additional Comments at end from Comm. Davis:

• As part of the Climate Action Plan, wants to establish benchmarks for adding electronic vehicles to MWRD’s fleet.  Suggested 50% by 2025 and 100% by 2030.
• Expressed concern about the Thornton composite reservoir as the clock is ticking on the transitional reservoir.  This impacts flooding in the South Suburbs.  Comm. Davis suggests that green infrastructure projects should be prioritized here to provide capacity to prevent/reduce flooding.  Comm. Davis impressed with the acquisition work in flood plains and flood-prone properties in this area.  He also applauded the work on identifying disproportionately-affected areas as important for prioritizing projects.

Observer:  Priscilla Mims                                                       Length of meeting:  4 hours

Metropolitan Water Reclamation District (MWRD) Board - Special Meeting
December 12, 2019

In 30 minutes, the Board passed the 2020 Budget which reflected additional changes to the Tentative Budget from November 7.  The vote was 8 to 0, with Commissioner McGowan being absent.  Following are some highlights:

• The total budget is 5.7% ($70 million) less than that for 2019, and reflects a decrease of 14 positions.
• The total property tax levy is $652.6 million, up $9.3 million from 2019, a 1.4% increase.
• $20 million, the accumulated investment income, is proposed to be transferred to the Retirement Fund to maintain growth in the Retirement Fund’s funded ratio.  To make this transfer, a 2/3 vote will be required after March 1.
• The District will utilize the one-time revenue from Chicago’s declaration of a TIF surplus for a one-time expenditure of a $10 million upgrade to the Enterprise Resource Planning System. 
• In addition, $5 million will be reserved and might be used to fund an additional payment to the Retirement Fund if statutory authority is received.

Further changes to the 2020 budget may be considered at the regular Board meeting on December 19, at which time the budget will be finalized.

Observer - Priscilla Mims

Metropolitan Water Reclamation District (MWRD) Annual Meeting, Board Meeting, and Public Hearing on the Proposed 2020 Budget
December 5, 2019

Board Meeting

• Several Commissioners expressed frustration that several new contracts or requests for proposals (RFPs) for services under existing contracts set to expire by the end of the year were only coming to the Board now.  They asked that such items be brought at least two months ahead of time in the future to allow the Commissioners sufficient time to review the contracts or RFPs and get answers to questions to ensure that there would be no lapse of services.  The Executive Director at the end of the meeting said that he understood what was wanted and he and the staff would take steps so this will happen in the future.  Among those items,
  • RFP for state consultants/lobbyists for the MWRD for 2020.  However, don’t expect to award contract until Feb. 20, 2020, almost a month after the State Legislative Session begins.  Commissioner Garcia also asked whether further thought had been given to placing all lobbyists under oversight by a single department.  This item was passed. (Item 10, File 19-1192)
  • Extension of contract which would otherwise expire on Dec. 31 through 2020 for federal consultants/lobbyists.  Comm. Spyropoulos asked to defer, but expects will be on Dec. 19 agenda, so no interruption of service.  (Item 29, File 19-1186)
  • Authority to grant a 25-year easement to Enbridge Energy to continue to operate and maintain a petroleum pipeline.  Existing easement expires Dec. 18.  Concerns were expressed by Comm. Shore and Davis over the past fines the company has had for spillages and the age of the pipeline (50 years).  The MWRD General Counsel said the delay in coming before the Board was due to some extra safeguards that the staff had negotiated in conjunction with this extension, including a $4.5 million letter of credit to cover any problems, as well as inspections of the pipeline.  However, none of this information was included in the transmittal letter for this item.  Comm. Davis asked to defer this item.  (Item 36, File 19-1210)
• Other items discussed and approved:
  • Authority to issue RFP for rain barrels.  Originally MWRD gave away rain barrels pursuant to a consent decree that has expired.  Now sell the barrels.  Comm. Garcia asked whether MWRD has any info on whether these barrels are actually used (answer was “no”), and suggested that some follow-up be done going forward to ensure this is worthwhile.  (Item 16, File 19-1201)
• Other items discussed & deferred:
  • Payment for 1 employee to attend 10-day residential development program by the Water Wastewater Leadership Center.  Several Commissioners wanted to know who else has gone in the past and what is the criteria for selecting the employee.  Comm. Garcia requested deferral.  (Item 8, File 19-1195)
  • Proposed contract with Sun-Times to publish legal notices for 2020.  Comm. McGowan asked to defer. (Item 23, File 19-1219)
  • Settlement of property loss claim in connection with a sewer backup adjacent to a District manhole that was undergoing emergency repairs.  Comm. Shore asked what, if anything, has District learned from this.  Comm. Garcia asked to defer.  General Counsel advised that settlement must be completed by Dec. 31, or the settlement agreement expired.  (Item 35. File 19-1202)

Annual Meeting
Immediately prior to the Board meeting, the Annual Meeting was called to order at which the Board received and filed the Annual Report presented by President Steele.  This Report is available at https://mwrd.legistar.com under “Meeting Details” for the Dec. 3, 2019 Annual Meeting.  (This meeting had been suspended on Dec. 3 for lack of a quorum and resumed on Dec. 5.)

Public Hearing on the Proposed 2020 Budget
There were no public speakers.  Finance Chair Avila, who was presiding, explained that the Civic Federation had written a letter to the Board stating that it would not be reviewing or commenting on the budget as it has in the past.

Observer - Priscilla Mims

Metropolitan Water Reclamation District (MWRD) Commissioners
Special Meeting of MWRD Committee on Budget and Employment
November 7, 2019

The Committee met to consider the Executive Director’s 2020 Budget Recommendations contained in the October 15 book, along with the proposed changes submitted by the Executive Director on October 30, 2019.  The initial recommendations and the changes may all be accessed at http://mwrd.legistar.com/calendar.aspx  and clicking on the “meeting details” for the entry for this Nov. 7 meeting.  The Recommendations as amended were accepted. 

Next Steps in Budget Process:

• Public Hearing on Dec. 5 at 2 pm
• Special Board Meeting on Dec. 12 at 10:30 am to consider further amendments and adopt budget
• Board Meeting on Dec. 19 at 10:30 am to consider any further, and final, amendments

Budget Overview (reflecting changes):

• Total proposed budget of $1.089 billion, a decrease of 10.9% from 2019.
• Total proposed tax levy is $652.6 million, an increase of 1.4% from 2019.
• Number of employees (Full Time Equivalents, or FTEs) are 1,953, down by 14 from 2019.

The Commissioners heard from representatives from each MWRD department who presented the overview of that department’s proposed and 2019 budget and employee count, the 2019 operational highlights, and the primary initiatives for 2020.  Their slide presentations may also be found at http://mwrd.legistar.com/calendar.aspx. Only a few of the Commissioners asked questions.  Here are some of the highlights:

• Maintenance & Operations will be issuing a Request for Proposal (RFP) for marketing and developing biosolids.  Plan to hire an outside firm rather than add staff because need to fine new outlets.  The changing weather that is bringing more rain increases the costs to the District.
• Engineering plans to review contract language and requirements to see if more bids for RFPs might be obtained to ensure the MWRD is getting the most favorable prices. 
• Stormwater Management averages only 37 days after submission to issue permits.  In 2020, the plans are to continue the Addison Creek Reservoir construction and award the Addison Creek Chanel Improvements project to reduce overbank flooding.  Commissioner Shore said she remains concerned that the MWRD has had problems spending all of the tax levy for the Stormwater Management Fund in past years, though it appears that that will be done in 2019.  She wonders if consideration should be given to contracting outside of the District if Staff cannot generate enough projects internally.
• The Monitoring and Research Department had a long list of accomplishments for 2019 and a number of new projects for 2020.  The Director explained that the employees are now organized by programs and projects, rather than particular specialties.  In the past, if you were in the soil area, you only worked on soil-related projects.  This new organization means they can work more efficiently and so will be able to eliminate 6 unfilled positions.
• The Law Department expects that the revised Ethics Ordinance will be ready before the end of 2019.  Commissioner Davis raised the idea of the Board hiring its own attorney.  The General Counsel responded that that could be done, but the Law Department’s client is the MWRD, and the Board is part of the MWRD.
• The General Administration Budget is up by $2.8 million over 2019; $2.4 million of which is proposed for a 2% increase in the salaries of non-union employees.  Low-flow toilets were installed in the main MWRD building in 2019.  Already in 2019 the prescription drug collection program has exceeded the number of pounds of drugs collected and disposed of in 2018.
• Public Affairs helped create a road show to celebrate the 130th anniversary of the MWRD, and has a new storybook for children called “Where Does My Poop Go?”!!!
• Commissioner Shore asked the Director of Information Technology whether there is a need for a Chief Information Security Officer.  Director Sudduth said that he is going to try to recruit someone who could help fill that role, but there is a great demand for qualified people in the private sector at higher salaries  He may also look to outside services.
• Human Resources has an RFP coming for a compensation and benefits study to be completed in 2020.  Commissioner Shore asked that the staff advise what the impact on the budget the parental leave policy has had.
• During 2020 the Commissioners and staff will embark on a new 5-year strategic plan.
• Commissioner Shore asked whether the MWRD should consider seeking legislation from Springfield that would permit the District to contribute larger amounts to the Pension Fund, particularly when the District has one-time revenues, such as the TIF-surplus that the City of Chicago is releasing to the MWRD and the other government entities.

Observer:  Priscilla Mims