Commissioners Question MWRD Procurement Practices and Policies

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