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MWRD Board Passes $1.2B Budget With No Discussion

12/20/2018

Metropolitan Water Reclamation District (MWRD) Board Meeting - December 13, 2018
Public Hearing on the Proposed Budget on December 6, 2018

By an 8-0 vote, the Metropolitan Water Reclamation Board took just 15 minutes to approve 11 items which resulted in a $1,203,988,541 budget for 2019. This is $53 million more than 2018, or a 4.6% increase. The property tax levy was raised to $643 million, an increase over 2018 of $20 million, or 3.3%. There was no discussion. (Commissioner Morita was absent.)

Next Step: The Board will consider amendments to the 2019 budget at the December 20 meeting, at which time the 2019 budget will be finalized.

Relevant Comments from December 6 Public Hearing on the Proposed Budget
The 2019 Budget that was passed on December 13 included a number of changes from the Tentative Budget Recommendation by the MWRD Executive Director dated October 13, and additional changes from the 2019 Tentative Budget published on November 20 (which reflected amendments to the October 13 Executive Director’s Recommendation).

At the December 6 Public Hearing, the Civic Federation, while overall supportive of the proposed budget, pointed out how confusing and difficult it is to review and comment on this ever-changing budget. The Civic Federation’s recommendation was that the final form of the budget that is to be considered by the Board should be published and made available to the public ahead of time. This is particularly important, said the Civic Federation, because the version of the budget passed by the Board often includes significant increases in the total appropriations and property tax levy from those contained in the Executive Director’s original recommendation, as well as from the Tentative Budget.

In this case, the version passed by the Board on December 13 varied from both the October 13 and November 20 versions (which is the version the Civic Federation reviewed and commented on) in a number of ways, including:

December 13 October 13 November 20
Total Appropriations: $1,203,988,541 $1,079,658,141 $1,092,299,141
Tax Levy: $ 642,783,809 $ 640,649,270 $ 640,649,270

The Civic Federation also recommended that the MWRD analyze the effect on its pension funding and have fall-back plans in case the District’s pension reform law were to be successfully challenged.

Observer - Priscilla Mims

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Water District Board Faces Questions About Lack of Insurance at Time of Calumet Explosion

12/8/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - December 6, 2018

This was the first Board meeting attended by the 3 new Board members elected in November: Cameron Davis, Kimberly DuBuclet, and Marcelino Garcia. All actively took part in the meeting, which was notable more for the discussion that occurred, than for the decisions made.

Issue of Property Insurance

During the Public Comment portion of the meeting, Michael Archey raised concerns about the timing and process followed by the District regarding the Purchase Order for Furnishing Property Insurance Coverage (Item 18: #18-1234) and said he would welcome the opportunity to speak more on this issue if invited by the Commissioners. Commissioner Davis did invite him to so speak when the item was being considered. Mr. Archey said that a prior Purchase Order for greater coverage (with a lower deductible and a higher premium) had been presented to the Board first at the June 21 meeting where it was deferred. The Board then unanimously voted to delete this item at the July 12 meeting (Item 28: #18-0560). While the Board is self-insured, starting in 2013 the Board began purchasing “excess” coverage in the event of a catastrophic event. As explained at the June 21 meeting, the Board has $30 million to cover losses, but has $11 billion in property assets.
The prior property insurance policy expired on July 17, 2018. The explosion at the Calumet Water Reclamation Plant, which injured workers and the plant, occurred on August 30 when no policy was in effect.
Mr. Archey said that the Board’s failure to timely enter into a new policy left taxpayers exposed to footing the bill for the costs associated with the Calumet explosion. He urged that the Board look into the reasons for the delay in obtaining coverage and why the current proposal is better than the one in effect rejected (by virtue of the Board deleting the item) in July, even as he welcomed the Board approving this item to reduce future taxpayer exposure.
The Board did approve the new insurance policy with no further discussion. Question: should/will the Board follow-up on the issues raised by Mr. Archey?

MBE/WBE Paricipation

Commissioner Garcia made clear that one of his primary focuses will be on increasing the use of Minority and Women Owned/Run Business Enterprises (“MBE/WBE”) in contracts and purchase orders at the MWRD. Accordingly, Commissioner Garcia inquired about participation by MBE/WBE with all contracts and purchase orders presented for approval by the Board. He questioned whether the District could become more creative in seeking such participation.
All such contracts and purchase orders were ultimately approved as presented, but expect to hear more about this in the future.

Award to Chicago Tribune

Ultimately, the Board approved using the Chicago Tribune for publishing legal notices and invitations to bid for a one-year period beginning January 1, 2019 for $56,000. The Sun-Times, the low bidder by $1,400, was disqualified because the paper did not have a minimum daily circulation of 100,000 as set by the request for proposal (“RFP”). (Other, much higher, bids were from the Lawndale New Group for $196,000 and from the Chicago Defender Newspaper for $227,500.) During the discussion, the Commissioners expressed concern that this requirement (which is there to ensure wide circulation) currently results in only the Tribune being qualified to win such an RFP. The Sun-Times misses the threshold by 407. The Tribune has a circulation of over 400,000.
Staff did say that the District uses other outlets, including online services, to get the word out about employment and contract opportunities. The Commissioners asked for a list of such online sites and other publications being used and will provide a list of others that the Commissioners think the Staff should consider. In addition, the Staff is to provide information on the history of the circulation requirement and the circulations of publications.
Commissioner McGowan lifted her request for deferral of awarding this contract because the Board did not have the ability to change the circulation requirement for this RFP that had been previously approved to be issued. Thus the award was approved. (Item 24: 18-1254)

Observer - Priscila Mims
Length of meeting: 2 hours, 5 minutes, including a 5-minute break and 25-minute Executive Session.

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MWRD Budget Committee Hears Departmental Presentations on 2019 Proposed Budget of $1.092 Billion

12/6/2018

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Metropolitan Water & Reclamation District Committee on Budget & Employment
Departmental Presentations for 2019 Budget - November 1, 2018

Acting Executive Director John Murray gave an overview of the proposed 2019 budget:

$1.092 budget is 5.1% less than in 2018, but would include a 3.1% increase in the property tax levy over 2018
Decrease in overall budget due to the timing of capital projects and payments
2019 emphasis on maintenance
2019 includes large (39.4%) increase to storm water management function over 2018, including transfers of employees from other areas
Controlling energy costs (basically flat and projected over the next 5 years) touted
Continued appropriations for Retirement Fund to increase funded ratio (as of Dec. 31, 2017 was 58.3%)

Each Department Head gave a short presentation of 2018 accomplishments and plans for 2019.

Brian Perkovich, Acting Director of Maintenance & Operations
Catherine A. O’Connor, Director of Engineering
Edward W. Podczenwinski, Director of Monitoring & Research
Jacqueline Torres, Clerk/Director of Finance
Susan T. Morakalis, General Counseil
Darlene A. LoCascio, Director of Procurement & Materials Management
General Administration:
- Eileen M. McElligott, Administrative Services Officer
- Regina D. Berry, Diversity Adminstrator
- Allison Fore, Public and Intergovernmental Affairs Officer
John H. Sudduth, Director of Information Technology
Beverly K. Sanders, Director of Human Resources
Board of Directors presented by Nicholas O’Connor, Administrative Aide to President and MaryAnn Boyle, Treasureer
Susan Boutin, Executive Director, MWRD Retirement Fund

This was the opportunity for MWRD Commissioners to ask questions. There were only a few, the majority of which were by Commissioners Avila, Shore and Spyropolous.

Next steps in the budget process:

Thursday, Dec. 6 at 2 pm: Public Hearing
Thursday, Dec. 13 at 10:30 am: Special Board Meeting to adopt budget
Thursday, Dec. 20 at 10:30 am: Any final budget amendments to be adopted

Observer: Priscilla Mims

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Environment Loses But Veterans Gain at Water District Board Meeting

11/20/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - November 15, 2018

What the Board Decided:

Many of the same November 1st board meeting speakers against the MWRD authorizing an easement to the Cook County Roads and Transportation Department for the environmentally vulnerable Canal Shores land in Wilmette and Evanston, spoke again at this meeting. However, the board voted 5-4 to grant the easement. Commissioners Voting Yes: Dunkin, Durkin, McGowan, Steele, and Walsh. Commissioners Voting No: Avila, Morita, Shore, and Spyropoulos. Messrs. Dunkin, Durkin, and Walsh are leaving the board as a result of the November election.

Several board members publicly recognized the overwhelming opposition to granting the easement, but decided to follow the recommendations of the MWRD legal department and do so. It is expected that the organizations, including the League of Women Voters of Evanston and Wilmette, and individuals who asked for a NO vote on the resolution [Agenda Item #18-1159] will now turn their attention and opposition to the Cook County Board of Commissioners where some members of the MWRD board believe it should be decided.
One concern raised was the proposed five foot elevation of the road increasing greater runoff for those wetlands connected and the houses now bordering the canal along with the loss of woodland and wildlife.

MWRD Commissioners also approved Resolution #18-1147 adopting a policy to provide contractor opportunities for Veteran owned and operated small businesses. The board would require the Veterans to be honorably discharged, released due to hardship or disability and be a member of the Armed Forces for at least six months to qualify. The goal is that at least 3% of MWRD contracts will be awarded to Veteran run businesses. Small business, women’s, and minority enterprises will still receive the current mandates and will not be impacted by the additional 3%.

Observer - Patricia Lind Meeting Length: 3 hours

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Easement Controversy Over Road Construction on North Shore Channel Property Dominates Water District Board Meeting

11/4/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - November 1, 2018
Commissioners present: all except Josina Morita.

Public Comment time at this meeting concerned the following.
Summary of Issue:
The Cook County Dept. of Transportation made a request for an easement for a road to be built across the tenth hole of Canal Shores Golf Course in Wilmette. The Keefe Trust is the actual party benefiting from said easement. The Trust purchased the property several decades ago with the knowledge that there was no road to the parcel. Since the Wilmette Park District leases the land which contains the golf course, the Keefe Trust applied for permission to build a road across the tenth hole of the course, running alongside existing houses at Golf Terrace. Wilmette Park District denied application stating this was a use of public land for private profit.
It is unclear why Cook County and its transportation department became involved and made this request to the MWRD Board when the beneficiary of the easement grant would be the Keefe Trust.

Public comment:
Thirty-three citizens against the easement testified over a period of three hours, making the following points:

Ecological concerns-construction would destroy wetlands & wildlife habitats
Canal Shores, a public course, has been used by residents of Wilmette and Evanston for 100 years. It is a great recreational resource for the community.
Protection of green space is a public good now more than ever.
Course is used for bird watching, cross country skiing, walking, not just golf.
This is a good governance issue. This is public land preserved for the use of the public. Taking this land for the benefit of one private developer is not defensible.
Taxpayers will end up bearing the cost of the road and its maintenance.
Fear of litigation from Keefe Trust is no reason to grant the easement.
This will not increase tax revenues because the road will cause existing properties to lose value.
Wilmette Park District counsel stated that they will not stand for a decision that violates the terms of the lease.
Building a road will cause more flooding of basements in the area.
Golf Terrace homeowners will be harmed by this decision. They will have a road in front and behind their homes, resulting in safety issues for children and a loss of property values.
The connection between the Keefe Trust and the law firm of Senate President Cullerton was raised. Is political connection being used to exert pressure on commissioners?

Comments/questions from Commissioners:

There was confusion over who would actually pay for the road and its maintenance. John Yonan from the CC Highway Dept. was not able to give a definite answer. He suggested there might be a public/private partnership.
Commissioner Walsh warned of litigation if the easement was not granted. Also, he seemed to feel it was somehow wrong to deny a request from another governmental body, in this case Cook County Transportation Dept.
Commissioner Shore asked for an estimate of the cost of building the road. Yonan said there were too many variables and he could not answer at this time. Ms. Shore was confused as to why Keefe was involved if it is a Cook County request. She also suggested it was hard to see how building a road furthers the mission of the MWRD - that is, to protect water and to manage flooding.
Commissioner Dunkin was visibly upset about spending three hours of board time on testimony about a sliver of a golf course in a wealthy area of the county. He said areas like Englewood receive little attention, though there is great need, while elite areas of the North Shore get an inordinate amount of attention. He called for a vote up or down and then movement to matters of more importance.

Commissioner Avila moved to defer this issue, and this ended the morning session.

Observer - Georgia Gebhardt Meeting length: three hours (10:45 a.m.-1:45 p.m.)

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Water District Puts Bio-gas Development on Hold Pending Review of Energy Security Goals

10/19/2018

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Metropolitan Water Reclamation District (MWRD) Board Meeting - October 18, 2018

What did the Board decide?
Since 2015, the MWRD has worked with potential partners to increase bio-gas production and use at Stickney and Calumet plants. Today the Board, at staff’s request, paused the development process, voting not to accept responses to the District’s 2016 and 2017 requests for proposals.

Three public speakers, including James D. Harrington, legal counsel for Green SEED Energy, addressed disappointment that the District would summarily abandon plans for these projects, which promised environmental and job benefits to the Calumet Community. He said SEED had met for years with staff and was blindsided when no proposal was accepted.
Commissioner Dunkin asked staff for clarification after removing the items (#11 and 12) from the consent agenda.
Commissioner Shore questioned why the District was reversing a project compatible with its energy-neutrality goal.
Acting Executive Director John Murray said the District did not wish to pursue individual projects without an over-arching policy in place. He said staff would work with the Board to formulate policy in the areas of resource recovery, energy security, environment, while considering the District’s own needs for the gas. He’d like the Board to formulate a vision on these topics, starting with a study session in the first quarter of 2019 “and then we can start again,” he said.

What else did the Board discuss?

There was a resolution and speaker recognizing Breast Cancer Awareness month, introduced by Commissioner McGowen.

Items to watch for in the Future:

Item #47, a request from the Cook County Department of Transportation for an easement to construct a public road across lands leased by the Wilmette Park District, and used as the 10th hole of the Evanston-Wilmette Community Golf Course (Canal Shores), was pulled from the consent agenda by Executive Director Murray. The road is meant to access a land-locked real estate parcel owned by the Keefe Family Trust. There were numerous comments urging the board to oppose the easement (a vote is expected as soon as the November 1, 2018 meeting). Representatives of Go Green Wilmette; Friends of the Chicago River; Brian Abbott, commissioner of the Wilmette Park District; Natural Habitat Evanston; and from the Golf Course all spoke against the road.

Other Comments or Observations:

MWRD investments for various district operating funds totaled $850 million on September 30. Average annual yield on these investments in September was 1.165%.

Observer: Laurie Morse Meeting Length: started at 10:30 and went into Executive Session at noon.

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MWRD Board Passes $1.2B Budget With No Discussion

Water District Board Faces Questions About Lack of Insurance at Time of Calumet Explosion

MWRD Budget Committee Hears Departmental Presentations on 2019 Proposed Budget of $1.092 Billion

Environment Loses But Veterans Gain at Water District Board Meeting

Easement Controversy Over Road Construction on North Shore Channel Property Dominates Water District Board Meeting

Water District Puts Bio-gas Development on Hold Pending Review of Energy Security Goals

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