April 12, 2006                                                                                                       

 

 

Minutes of the regular meeting of the Board of Trustees of the North Shore Sanitary District held on Wednesday, April 12, 2006 at 9:30 A.M. at the District Office of the Raymond E. Anderson Complex located in Gurnee, IL.

 

 

The meeting was opened with the Pledge of Allegiance.

 

 

On roll call, the following Trustees were present:

 

 

                                Stephen J. Drew, President

                                Daniel M. Pierce, Vice President

                                John Paxton, Treasurer

                                James Swarthout

                                Effie Wroten

 

 

Staff members present were General Manager Brian Dorn, Assistant General Manager Dave Miller, Assistant Attorney Anne Linn, Director of Engineering Services Jai Gupta, Director of Laboratory Services Joe Robinson, Director of Operations Gary Sowma and Director of Technology Services Pete Russo.

 

 

There were no comments from the public.

 

 

President Drew presented the Consent Agenda, as follows:

 

A.      Approval of the Minutes of the Meeting held on March 8, 2006.

B.       Consideration of Bills.

Wastewater Treatment Fund                                          $1,656,340.66

Check Nos. 131519-131947

Void – Check No. 131582

C.       Financial Report, February 2006.

D.      Hearing Summary, March 6, 2006.

E.       Waiver of Late Applicant Provisions of Dental Plan for Vice President Pierce.

F.       Water Shut-off Schedule Summer 2006.

G.      Correspondence.

1.        03/09/06 NSSD to Gail Holmes, Gurnee, regarding denial of her request for billing adjustment & 03/31/06 Gail Holmes Response Letter.

2.        04/04/06 NSSD to 13 service area communities regarding forthcoming request for information related to Administrative Order report due to USEPA on May 31, 2006.

H.      Press Articles.

1.        Waukegan News Sun.

i.      ‘Snafu causes sewage dump in lake’, 03/09/06.

ii.     ‘North Chicago officials probe sewer backups’, 03/27/06.

2.        Lake Forester.

i.      ‘Sewage spill may prompt legislation’, 03/16/06.

I.         Authorize Payroll and Finance Department to issue District checks to meet expenses where necessary for payroll and to avoid interest and/or penalties before the next Board Meeting.

 

 

It was moved by Trustee Paxton, and seconded by Trustee Wroten that the items under the Consent Agenda be approved.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

Trustee Paxton presented Insurance Renewal, West Insurance Agency as follows:

 

1.        Property/Casualty Insurance Renewal, $398,133.00.

2.        Life, Medical & Dental Renewal, $208,412.60

 

Trustee Paxton introduced Brad West of West Insurance Agency to summarize the Insurance Renewal for Property/Casualty. Mr. West stated based upon his marketing efforts for the District’s 2006-2007 renewal term, he recommends the quotations from the Federal Insurance Company, St Paul Insurance Company and the Ohio Casualty Company be accepted. The annual premium as proposed is $398,133.00 and represents a 4.5% decrease over the expiring premiums.

 

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve renewal of Property/Casualty insurance with the Federal Insurance Company, St Paul Insurance Company and the Ohio Casualty Company in the amount of $398,133.00.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

Trustee Paxton introduced Ed Shultis of West Insurance Agency to summarize the Insurance Renewal for Life, Medical & Dental. Mr. Shultis stated that American General/AIG Life will increase rates from $0.36 to $0.39 per $1,000 rate for employee term life effective 5/1/06. This is the first increase since 5/1/01. The underwriter has agreed to maintain the $0.39 rate until 5/1/08.  Allied Benefit Systems has agreed to maintain the current administration fees until 5/1/08. Mr. Shultis stated that West Insurance Agency recommends that the District renew with Allied Benefit Systems, PHCS (Private Healthcare Systems), American General/AIG Life and retain the current Stop Loss Carrier, HCC Life in the amount of $208,412.60.

 

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve renewal of Life, Medical & Dental insurance with Allied Benefit Systems, PHCS (Private Healthcare Systems), American General/AIG and retain the current Stop Loss Carrier, HCC Life in the amount of $208,412.60.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

3.        COBRA and IMRF 2006-2007 Renewal Rates.

4.        Illinois Public Risk Fund Pooling Agreement.

5.        Employee Benefit Plan Endorsement 06-01 amending the definition of employee to include the wording of “Assistant General Manager”.

 

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve the COBRA and IMRF Medical and Dental Rates for 2006-2007 as developed by Allied Benefits System, the Illinois Public Risk Fund Pooling Agreement and the Employee Benefit Plan Endorsement 06-01 amending the definition of employee to include the wording of “Assistant General Manager”.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

General Manager Dorn gave the Management Report as follows:

 

1.        Presented for Adoption the FY07 Capital Improvement Plan.

 

 

It was moved by Trustee Paxton and seconded by Trustee Pierce to adopt the FY07 Capitol Improvement Plan.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

2.        Presented Engineering Agreement with Smith Engineering Consultants, Inc. to provide Technical Support Services of Brian Jensen for the Zion Township Landfill Sludge Recycling Facility in the amount of $43,638.00.

 

Mr. Dorn stated the Agreement with Smith Engineering Consultants, Inc. would be to provide Technical Support Services of Brian Jensen in association with the Sludge Recycling Facility construction project. Beginning on March 27, 2006 through June 30 2006 Mr. Jensen will be involved on an average of 20 hours per week.

 

 

It was moved by Trustee Swarthout and seconded by Trustee Paxton to approve Engineering Agreement with Smith Engineering Consultants, Inc. to provide Technical Support Services of Brian Jensen for the Zion Township Landfill Sludge Recycling Facility in the amount of $43,638.00.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

3.        Presented Amendment No. 1 to the Engineering Agreement with Donohue & Associates for Resident Engineering and O&M Services at the Zion Township Landfill Sludge Recycling Facility a decrease in the amount of $19,567.00.

 

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve Amendment No. 1 to the Engineering Agreement with Donohue & Associates for Resident Engineering and O&M Services at the Zion Township Landfill Sludge Recycling Facility a decrease in the amount of $19,567.00.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

4.        Presented Amendment No. 2 to GlassPack Operation and Maintenance Agreement.

 

Mr. Dorn stated Amendment No. 2 consisted of adding Lawn Maintenance and change in insurance wording to the Agreement. There were no changes in insurance limits just how it was written.

 

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve Amendment No. 2 to the GlassPack Operation and Maintenance Agreement adding Lawn Maintenance and change in insurance wording.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

5.        General Manager Dorn gave a summary on the status of the Zion Township Landfill Sludge Recycling Facility Project:

 

a.       92% complete through March 31, 2006.

b.      Construction work, wiring of instrumentation and equipment is near completion.

c.       Vendor training on the various systems is being scheduled through June.

d.      GTS, suppliers of the thermal oil system, will be on site the week of April 10th to complete their startup activities.

e.       VATECH engineers on site to begin preliminary checkout of the dryer system scheduled to occur through the month of April.

f.        Linde, supplier of the oxygen system completed loading of the two adsorber vessels.

g.       STS submitted draft copies to the District for its review of the Air Emissions Monitoring and Control Plan and the air emission testing program required to be submitted to IEPA.

h.       Lake County Health Department performed an inspection on behalf of the IEPA Bureau of Land on March 30th.  It is anticipated that an operation permit will subsequently be issued by the Bureau of Land on or about April 20th, which will then allow the District to bring dewatered sludge onsite for startup of the dryer.

i.         Minergy has begun insulation of the melter. They have hired their operations and maintenance staff for the facility. They will be involved in the vendor training which is scheduled over the next two months. NSSD and Minergy continue to meet on a regular basis to discuss the logistics associated with Minergy operating the facility

j.        J.J. Henderson indicates a project substantial completion date of June 22, 2006. This date is realistic considering the schedule of startup activities and vendor training.

 

 

Assistant General Manager Miller gave the Administration Division report as follows:

 

 

1.        Presented for approval an Electricity Supply Agreement with Sempra Energy through April 2011.

 

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve an Electricity Supply Agreement with Sempra Energy through 2011.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

2.        Reported on a three year contract to inspect and service the District’s Boilers, Dehumidifiers and VAV Boxes during October of 2005, 2006 and 2007.  The contract was awarded to International Piping Systems but due to poor performance and not completing work as outlined in the specifications during the first year of the contract Mr. Miller is recommending termination of their contract with the District and to re-bid the project.  Mr. Miller stated he had been in contact with International Piping Systems and there didn’t seem to be a problem with the termination.

 

 

It was moved by Trustee Swarthout and seconded by Trustee Pierce to approve the recommendation to terminate the contract between NSSD and International Piping Systems for the inspection and servicing of the District’s Boilers, Dehumidifiers and VAV Boxes and to re-bid the project.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.

 

 

3.        Presented Bid Summary #1252, General Office Supplies, Contract Term: 5/01/06-4/30/08.  On February 28, 2006 at 10:00 AM the bids were publicly opened and read aloud. Three responses were received as follows:

 

                                Vendor                                                                                    Base Bid on Specific Items

Prestige Office Products Inc.                                                                  $42,437.70

                Corporate Express                                                                                  $43,795.60

                OfficeMax                                                                                               $47,301.67

 

The Purchasing Department recommends awarding a two year contract, 5/1/06-4/30/08, for General Office

 Supplies to Prestige Office Products, Inc, lowest bidder on estimated items.

 

 

It was moved by Trustee Paxton and seconded by Trustee Pierce to award the bid for General Office Supplies to Prestige Office Products, Inc for a two year contract, 5/1/06-4/30/08, in the amount of $42,437.70.

 

 

On roll call, all Trustees present voted “Aye”. Motion declared carried.