Category: Environmental Cleanup

MWRD Board Receives Positive Report On Retirement Fund

7/22/2022

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

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Ethics Ordinance Approved by MWRD Board

1/28/2021

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Metropolitan Water Reclamation District (MWRD) Board Meeting
January 21, 2021

The meeting was to begin at 10:30 but was delayed for 15 minutes due to Com. McGowan’s having technical issues with her zoom software’s ability to mute and unmute. The meeting began in earnest shortly before 11 am.

Public Comment

Jen Walling, Executive Director of the Illinois Environmental Council, was the only public comment speaker. Her comments addressed the Ethics ordinance that MWRD has been working on for almost a year. She worried that $150 lobbying fees were still quite high for non-profit organizations like the Friends of the Chicago River to afford. She pointed out that technical assistance offered to the MWRD should not be considered “lobbying”, and she worried that legal requests to the MWRD would now be considered “lobbying”. She indicated that other Cook County governments have a more streamlined lobbying definition.

Board Discussion/Action
Commissioners asked for a number of items to be discussed, but in the end, there were three significant discussions:

Item 34-21-0081 was singled out by Debra Shore for discussion. This contract had to do with drop shafts for TARP (Tunnel and Reservoir Plan) control in prairie restoration areas. According to an environmental group doing restoration work there was heavy damage from gravel surges out of the drop shafts that damaged deer control fences and prairie plantings. Com. Shore requested closer supervision from MWRD personnel for remediation by the contractor. She also requested that plainer English be used so that the public understands what a “hydraulic transient surge event” might mean. Habitat restoration is important and she requested the contract increase be deferred until staff could investigate. Unanimous approval to defer.
Item 39-21-0037: Authority was being sought once again to lease 21+ acres of Cal-Sag Channel Parcel in Alsip to be used to construct a parking lot for semi-trucks. (This item had been deferred from January 7 meeting.) Coms. Shore, Davis, and Sepulveda had singled out this item for discussion. The concern from Com. Shore was why in this time of climate change would the MWRD consider a 39 year lease for a diesel truck parking lot. Instead, she suggested that the MWRD should either seek a shorter lease or plan ahead for a better use regarding land for future climate change. Coms. Morita, Davis, and Sepulveda agreed that long term strategic planning was important in dealing with future climate change. Diesel truck traffic pollution is often located in areas where issues of environmental justice have long existed, like Alsip. Com. McGowan strongly urged that this was a local issue for Alsip to deal with, to decide what kinds of business they would allow, and what kind of environmental rules they would institute. Com. Garcia suggested that there needed to be a study session and the issue needed to be viewed as part of the MWRD strategic plan. The item was deferred to be discussed in a study session, unanimously.
The third discussion was about the ethics ordinance, Item 48-021-002. Inspector General Blanchard reminded the board of commissioners that the State of IL required a lobbying fee even for non-profits. Blanchard told them it would be easy to automatically remind lobbying groups that they needed to update their monthly reports and pay fees. It can be made user-friendly so as to allay fears of penalties imposed for forgetting to report contact. This was a fear brought up during public comment. The ordinance was finally passed by unanimous consent. Commissioners agreed to revisit the ordinance as necessary to make it friendly to the public.
Frank Avila, a retired MWRD commissioner, was appointed as a trustee to the MWRD retirement fund.

Amy Little, Observer

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MWRD Board Explores Rise in Number of Industrial Users Violating their Pollution Rules

11/9/2020

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Metropolitan Water Reclamation District (MWRD) Board Meeting
November 5, 2020
All Commissioners in attendance

Approved General Agenda Items

Agenda Item (1) 20-0968 The MWRD’s annual meeting of December 1, 2020 was rescheduled for December 8, 2020.
Agenda Item (57) 20-0958 Commissioners approved the 2019 annual report naming 71 significant industrial users in violation of pretreatment standards or other MWRD pollution-abatement requirements. The 5-page list, which includes names of some of the District’s largest industrial customers, reflects a big increase from previous years (in 2017 and 2018, for example, there were 17 industrial violators).

The big jump in violators inspired spirited questioning by Commissioners Shore, Avila, and Spyropoulos. Staff described the year-long process the MWRD engages in to bring industrial users into compliance once problems have been identified. Every effort is made to return the customer to good standing and keep the company’s name off the public list.
One reason for the increase in 2019 numbers was the U.S. EPA’s 2018 audit of the MWRD’s Industrial Waste Division. EPA encouraged the District to pursue companies polluting at lower levels, but which are, over long periods, continuously out of compliance.
In 2019 the MWRD’s Industrial Waste Division was re-organized, so each company now has a specific staff person to communicate with. Users in non-compliance are invited to meetings; compliance milestones are established, and if those milestones are not met within the following year (2020), continuous violators receive a letter in August notifying them that their names will be published by year-end.
Commissioner Spyropoulos asked the department’s staff about new trends for 2020. Staff said some businesses have shut down, and the District is definitely seeing lower flows, which will reduce industrial user fees. The Stickney plant’s flows are down by one-third this year.

Agenda Item (20) 20-0894 This item gives the District authority to advertise a $2.7 million contract for heavy equipment with operators.
Agenda Item (11) 20-0957 Commissioners approved investment inventories and returns for the third quarter and for August and September. At the end of September, the District’s 2020 interest income was $6 million less than in the same period in 2019.
Agenda Item (69) 20-0942 This item was deferred by Commissioner Garcia at the October 15 meeting, but was approved today. This ordinance allows the MWRD to enter an agreement with the Village of Niles for an amount not to exceed $2 million, most of which will be paid by the Illinois EPA and is for the design, construction, operation, and maintenance of the Greenwood Stormwater Park. Commissioner Garcia had deferred this item based on questions about participation goals. He thanked staff for providing the data he requested.

Deferred Items

Agenda Item (2) 020-014 At the request of Commissioner Shore, this item, which amends the MWRD’s user charge ordinance, was deferred. The changes include rate increases, allows more commercial customers to submit real estate tax bills for rate abatement, includes a new definition for “facility” and revises the District’s definition of a tax exempt user. All of these changes may result in more revenue for the district.
Agenda Item (23) 20-0913 Commissioners Garcia and Spyropolous deferred this item, which is a 3-year contract for legal services related to Worker’s Compensation in an amount of $500,000. Commissioner Spryropolous questioned whether this amount would be adequate, and asked for data on how many claims could be expected over 3 years. Commissioner Garcia also asked for more information.
Agenda Items (38 & 39) 20-0888 and 20-0892 Commissioner Garcia deferred these items –approval of a street sweeping contract, and a contract to rebuild a piece of heavy equipment, until he receives data on participation goals.

New Business

Vice President Barbara McGowan was congratulated for her induction into the Civil Rights Hall of Fame.
The Alliance for the Great Lakes was congratulated on its 50th Anniversary. The organization was founded by Environmentalist Leila (Lee) Botts as the Lake Michigan Federation, changing its name in 2005. Commissioner Davis was the organization’s Executive Director from 1998-2009.

Future Items

New Commissioner Eira Corral Sepulveda, Village Clerk of Hanover Park, will be seated in December, after being elected as a Board member this month. Commissioners Cameron Davis and Kimberly Neely Dubuclet were both re-elected to full terms.

Observer: Laurie Morse Length of Meeting: 2.5 hours

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Contractor Illegally Discharges Construction Materials into the Chicago River

7/7/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - June 21, 2018

Commissioner Shore brought attention to the fact that an unnamed construction crew had discharged construction materials into the Chicago River. The infraction was noted and reported by a newspaper reporter who happened to be on the river. The Industrial Waste Commission investigated and found that the construction company had not followed through on its permit with the city which then requires contact with the MWRD for a permit. The MWRD regulates the quality of the water and issued a cease and desist order [the City while telling contractors to contact the District, does not itself inform the District of a new permit]. The crew was supposed to discharge waste into the city sewer system. To discharge to the river requires a State IEPA permit.

Commissioner Shore asked the District’s staff to reach out to tour-boat operations, building managers, concessioners, etc. and inform them of the MWRD’s citizen reporting software app.

Decisions Made:

Approved eminent domain of certain properties for the stage 2 Cook Reservoir construction after efforts to find owners failed.
Because of failure to reimburse the District for contracted work, the Executive Director agreed that if the State approaches the MWRD for an intergovernmental agreement, the staff will seek authority from the board before undertaking negotiations.

What to Look for in Upcoming Meetings:

Feedback on a meeting to be held in Evanston with homeowners and the city regarding the placement of a water pumping station on a section of land leased from the MWRD and targeted for green space [June 7th meeting].
Feedback on the status of the Executive Director’s leave. Acting Executive Director, Edward Murray, continues to handle the responsibilities in Mr. St. Pierre’s absence.

Observer - Diane Edmundson Meeting Length: 1 Hour (via video)

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Water Reclamation Board Continues to Focus on Increasing Efficiency, Fairness, and Best Practices

5/25/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - May 3, 2018
What did the Board decide?

Authorization for continued participation for 2021-2022 in a voluntary curtailment program (DR)) with Pennsylvania, New Jersey, and Massachusetts. Letter to the Board from Executive Director David St. Pierre stated “Through voluntary curtailments by the District and other participants, the curtailment providers have been able to defer the need for additional generating capacity to meet the short-lived peak demand. ”The MWRD has participated in this since 1988 and has led to $12.97M in revenue for reducing electricity usage at designated times. One question was whether MWRD would be penalized under this agreement if we fulfilled all commitments made, but other parties do not. The answer was NO. Authorization was approved. (Agenda Item 5 (18-421))
Purchase Order regarding delivery of sodium hydroxide to Olin Corp. Question was whether MWRD was exploring use of other chemicals, perhaps magnesium for Chicago River to meet permit requirements for removing phosphorus from the Chicago River. Three million pounds of phosphorus have bee removed from the Chicago River. The concern relating to future costs arose because of an unexpected 50% increase in cost of chemicals. St. Pierre stated he would not offer an estimate for future costs of the project. Purchase order was approved. (Agenda Item 8 (18-0397))
Implementation of Energy Efficiency Projects - Commissioner Shore explained there is successive series of contracts to complete these efficiency projects through Public Building Commission. One questions was whether the MWRD could have managed these projects. St. Pierre stated the Board did not direct movement in that direction though the department personnel could have done it. Also, grants have been received from the state, rebates have been received from Nicor and ComEd. Projects were approved. (Agenda Item 15 (18-0411))
Paid Parental Leave for non-represented employees was approved without discussion. (Agenda Item 29)

Observed by: Carolyn Cosentino Meeting Length: 40 min.

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Water District Board Approves New Management and Financial Plan for McCook Project

12/1/2017

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Metropolitan Water Reclamation District (MWRD) Board Meeting - November 16, 2017

Significant Decisions Made:

Two options have been proposed and generally agreed upon to move forward with the management of funds for the final phase of the McCook project. These may direct the lump sum of money granted to the MWRD for completion responsibilities rather than to the escalating costs of the Army Corps of Engineers. Management would be taken over by the MWRD and their software.
Concern was voiced about the previous phase costing far over budget; $250,000.00/year was the proposed cost while the realized was $2,000,000.00/year. This last phase is proposed to cost $46,000,000.00 to be used to stabilize the walls of tunnels already created along with the two tunnels left to dig. The Board requested information about the percentage of cost overrides that might occur. This phase of the project will not likely have as many setbacks and will be managed more closely in house.

Other Items of Interest:

Discussion and questions were raised about using the Army Corps of Engineers instead of e-Builder Inc. for delivering a project management system and technical support services. The conclusion agreed upon found the Army Corps of Engineers to be less than satisfactory and timely on other projects and more costly. $937,017.21 is Requisitioned for continued service with e-Builder.
Authority to advertise contract 14-113-5F. This is a test case for storm water retrofits for Real Time Controls and a rainwater harvesting system for the Dearborn homes in Chicago. 300,000 gallons are expected to be harvested to reduce basement back up in that area. The cost is estimated to be between $855,000.00 and $1,035,000.00. Chicago currently has two billion gallons of storage.
The value of using Environmental Resource Associates, a water environment research service, over other similar organizations was raised by Commissioner Shore. It was explained that this is a priority technology not seen anywhere else as of yet holding a patent. The hope is for them to become self sustaining, stay in the Chicago area, and that they will find better ways to target specific pollutants. MWRD is requesting $19,000.00 for research and training.
$50,300.00 is requested to enter an agreement for a Biocatalyst technology research project study by Microvi Biotech Inc for at the O’Brien Water Reclamation Plant.
A Resolution sponsored by the Board of Commissioners is given to congratulate the Shedd Aquarium and two organizations; “Washed Ashore” and “Art To Save the Sea” for creating sculptures of sea life made by Angeline Potsy using 38,000 lbs.of recycled materials found in or around waterways in Oregon.
500 million plastic straws are used daily in the United States. The hope is to spark changes in consumer habits. This Exhibition called “Shedding The Straw” is currently on display at the Shedd Aquarium.
In honor of Veterans Day Resolutions were given to Jesse White a former Army Paratrooper and Harry Sawyer a Navy Veteran and current Assistant Director of Veteran Affairs. Mr. Sawyer talked about help and opportunities offered to homeless veterans through the Heinz facility in Maywood, the Prince Home in Matino, and the Jesse Brown Home at Damon and Taylor in Chicago.

Observer - Pat Lind Meeting Length - 90 minutes

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MWRD Board Receives Positive Report On Retirement Fund

Ethics Ordinance Approved by MWRD Board

MWRD Board Explores Rise in Number of Industrial Users Violating their Pollution Rules

Contractor Illegally Discharges Construction Materials into the Chicago River

Water Reclamation Board Continues to Focus on Increasing Efficiency, Fairness, and Best Practices

Water District Board Approves New Management and Financial Plan for McCook Project

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