March 21, 2007

 

Minutes of the regular meeting of the Board of Trustees of the North Shore Sanitary District held on Wednesday,

March 21, 2007 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:

 

                                Daniel M. Pierce, President

                                Stephen J. Drew, Vice President

                                James E. Swarthout

                                Effie Wroten

 

Trustee Paxton was in attendance via telephone.  The reason stated by Trustee Paxton for attendance via the telephone is a family emergency due to a brother being terminally ill and needing care.

 

Staff members present were General Manager Brian Dorn, Assistant General Manager Dave Miller, Attorney Jay Ukena, Director of Engineering Services Jai Gupta, Director of Laboratory Services Joe Robinson and Director of Operations Gary Sowma.

 

There were no comments from the public.

 

President Pierce presented the Consent Agenda as follows:

 

A.            Approval of the Minutes of the Meeting held on February 13, 2007.

B.            Consideration of Bills.

                Wastewater Treatment Fund.                                            $1,503,482.08

                Check Nos. 135408 through 135429, 135450 through 135536 and 135537 through 135805.

                Check Nos. 135820 through 135839.

C.            Financial Report, January 2007.

D.            Hearing Summary, February 12, 2007.

E.             2007 CSWEA George W Burke Jr. Facility Safety Award

F.             Uncollectible Accounts Receivable Summary.

G.            Annexation Ordinance.

1.     Annexation No. 429, Submitted by Great Lakes Credit Union and Green Bay Crossing LLC, for approximately 20 acres for commercial use located at the northeast corner of the intersection of Illinois Route 131 and Route 173.

 

ANNEXATION ORDINANCE

 

                WHEREAS, the property hereinafter described is contiguous to the North Shore Sanitary District, and

 

                WHEREAS, said property is not within the corporate limits of any sanitary district, and

 

                WHEREAS, within the meaning of 70 ILCS 2305/28, the NORTH SHORE SANITARY DISTRICT has power to annex the territory hereinafter described by the passage of an ordinance to that effect, and

 

                WHEREAS, it is in the best interests of the citizens of the NORTH SHORE SANITARY DISTRICT to annex the property hereinafter described.

 

                NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE NORTH SHORE SANITARY DISTRICT AS FOLLOWS:

 

                SECTION 1:  That the property hereinafter described to‑wit:

 

That part of the Southwest ¼ of the Northwest ¼ of Fractional Section 18, Township 46 North, Range 12, East of the Third Principal Meridian, described as follows:  Commencing at the Southwest corner of the Northwest ¼ of said Fractional Section 18; thence Southerly along the West line of said Section 18, a distance of 11.75 feet to the center line of Illinois Route 173 as dedicated by Document Number 340067 recorded July 16, 1929, in Book 344 of Deeds, Page 180; thence Easterly along said center line of Route 173, as dedicated and monumented, 566.84 feet, measured to the center line of Illinois Route 131 (Green Bay Road) as dedicated by said Document Number 3400067; thence continuing along said center line of Route 173 a distance of 250.0 feet; thence northwesterly along a line parallel with the center line of Route 173, said line forming an angle of 100 degrees, 16 minutes, to the left with a prolongation of the last described course, 50.81 feet to the point of beginning on the North right of way line of Route 173 as dedicated; thence continuing along a line parallel to said Route 131, a distance of 199.19 feet; thence West along a line parallel with said center line of Route 173, a distance of feet to a point on the easterly right-of-way of said Route 173, a distance of 199.19 feet to a point on the easterly right-of-way line of said Route 131; thence Southeasterly along said Easterly right-of-way line 151.12 feet to a point of curve; thence Southeasterly along a curve to the left having a radius of 57.55 feet, an arc distance of 80.09 feet to a point on the North right-of-way line of said Route 173; thence East along said right of way line 151.12 feet to the point of beginning, in Lake County, Illinois. [OWNED BY GREAT LAKES CREDIT UNION]

 

That part of the South Half of the Northwest Quarter of Fractional Section 18, Township 46 North, Range 12, East of the Third Principal Meridian, described as follows:  Commencing at the intersection of the South line of the North 300.00 feet of said South Half of the Northwest Quarter with the center line of Green Bay Road; thence East parallel with the North line of the South half of the Northwest Quarter of said Fractional Section 18, a distance of 545.0 feet; thence South at right angles to the last described line, 282.0 feet; thence West parallel with the aforesaid North line of the South Half of the Northwest Quarter, 492.43 feet to the center line of said Green Bay Road; thence Northerly along said center line 286.86 feet to the place of beginning, in Lake County, Illinois.  [OWNED BY GREEN BAY CROSSING, LLC]

 

AND

 

That part of the South ½ of the Northwest ¼ of Fractional Section 18, Township 46 North, Range 12, East of the Third Principal Meridian, lying East of the center line of Green Bay Road (except the North 300.0 feet thereof) and also (except the East 1148.0 feet thereof) and also (except the South 250 feet of the West 250 feet thereof, measured from the center line of highways) and also (except that part described as follows: commencing at the intersection of the South line of the North 300.0 feet of said South Half of the Northwest Quarter with the center line of Green Bay Road; thence East parallel with the North line of the South half of the Northwest Quarter of said Fractional Section 18, a distance of 545.0 feet, thence South at right angles to the last described line, 282.0 feet; thence West parallel with the aforesaid North line of the South Half of the Northwest Quarter, 492.43 feet to the center line of said Green Bay Road; thence Northerly along said center line 286.86 feet to the place of beginning), all in Lake County, Illinois. [OWNED BY GREEN BAY CROSSING, LLC]

 

be and the same is hereby annexed to the North Shore Sanitary District.

 

                SECTION 2:  If the property herein described was the subject of a sewer service agreement, that agreement is terminated as of the effective date of this Ordinance.

 

                SECTION 3:  That a certified copy of this Ordinance, together with a map of the annexed territory shall be filed with the County Clerk of Lake County, Illinois.

 

                SECTION 4:  This Ordinance shall be in full force and effect from and after its passage and approval as provided by law.

 

H.            02/22/07 Memorandum of Understanding Between NSSD and the City of Highland Park – Water Service Terminations for the Non-Payment of Sewage Treatment Bills.

I.              Press Articles.

1.        Lake County News Sun.

i.      ‘Sludge drudgery’, 02/15/07.

ii.     ‘What’s that awful smell?’, 02/15/07.

2.     Lake Forester.

i.      ‘Beach project could disrupt boaters, others’, 03/01/07.

                J.             Thank You Card.

1.     Glenn Newborn.

K.            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 Swarthout and seconded by Trustee Drew that the items under the Consent Agenda be approved.

 

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

 

President Pierce presented the President Report as follows:

 

President Pierce reported that he attended an IAWA conference in Springfield along with Trustee Wroten, General Manager Dorn and Assistant General Manager Miller.  Trustee Pierce stated legislation has been introduced (Senate Bill number 684) which updates the North Shore Sanitary District Act of 1911.  The bill contains an amendment proposing technical changes to the Act recommended by Staff.  Trustee Pierce stated the bill as introduced gives the Board the authority to change the name of the District by Ordinance from North Shore Sanitary District to North Shore Water Reclamation District and increases Trustees salaries.

 

General Manager Dorn presented the Management Report as follows:

 

A.                  Zion Township Landfill Sludge Facility Monthly Status Report.

 

General Manager Dorn reported that the dryer system is now fully stable and is running very well after several operational changes made in the last few weeks.  VATECH’s technician was at the site the first week of March to make operational refinements and trained the Minergy operators in trouble shooting the Dryer problems.

 

The oxygen system has run stable for the last 2 weeks; many of the nuisance trips have been corrected.  Linde has committed to send an engineer to the site in April to replace instrumentation that has been associated with the tripping problems.  Minergy has performed several test runs of the Melter system.  They have recently noticed that as they come close to running the Melter system at 100% capacity, the oxygen purity drops below the required level of 90%.  The District is working with Linde to resolve this issue.  GE engineers were at site in February to look at the fabric filter problem.  Minergy is working with them on this issue.  Emission testing required in accordance with the facility’s permit is scheduled to begin on March 26, 2007.  General Manager Dorn stated that once the emission testing is completed an operational permit would be issued by the IEPA. 

 

Settlement discussions with J.J. Henderson have been completed.  The District’s legal counsel is working with J.J. Henderson’s legal counsel to finalize a settlement agreement that can be presented to the Board for approval.

 

B.                   Zion Township Landfill Sludge Recycling Facility Payment Authorizations.

1.        Independent Mechanical, $2,632.81.

2.        Air Design, $6,482.54.

3.        Luse Stevenson, $2,674.61.

 

General Manager Dorn requested approval for the above payments for the month of March for the Zion Township Landfill Sludge Recycling Facility.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to authorize payment to Independent Mechanical in the amount of $2,632.81, authorize payment to Air Design in the amount of $6,482.54 and authorize payment to Luse Stevenson in the amount of $2,674.61.

 

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

 

C.                   Presented an Intergovernmental Agreement with County of Lake for ROW Dedication at Washington Street and O’Plaine Road.

 

General Manager Dorn reported that the District would be giving up .03 acres or a 15 ft. triangular portion of our property at the intersection of Washington Street and O’Plaine Road.  In return the County would repave our turn lane into Wm. Koepsel Drive with completion of the project and in the future whenever O’Plaine Road is repaved.  General Manager Dorn stated that this portion of property that we are offering would not have any negative impact upon the North Shore Sanitary District.

 

It was moved by Trustee Drew and seconded by Trustee Wroten to approve the Intergovernmental Agreement with the County of Lake for ROW Dedication at Washington Street and O’Plaine Road.

 

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

 

D.                  Presented the following Engineering Agreements.

 

1.        STS Consultants, Ltd., Services Agreement for Hydrogeological Consulting Services at the NSSD Zion Landfill, $10,000.00.

 

General Manager Dorn reported that based on the current Landfill permit and past evaluations of groundwater monitoring well assessments, this agreement would allow for STS Consultants to assist NSSD staff with various issues to ensure regulatory and technical compliance with the requirements of our current permit with the IEPA and monitoring of NSSD Zion Landfill.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to approve the Agreement with STS Consultants, Ltd for Hydrogeological Consulting Services at the NSSD Zion Landfill in the amount of $10,000.00. This amount will not be exceeded without approval of the Board.

 

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

 

2.        Baxter Woodman Consulting Engineers, Clavey Road STP Bridge Rehabilitation Project, $57,570.00.

 

General Manager Dorn stated that the District’s existing Skokie Ditch Bridge at the Clavey Road STP is in need of rehabilitation.  The project consists of preparing plans specifications and bidding documents for rehabilitation of the Skokie Ditch Bridge at the Clavey Road STP in accordance with recommendations from Bridge Condition report dated October 2006.  The project includes preliminary and final design, assistance with bidding and construction-related engineering services.

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to approve the Clavey Road STP Bridge Rehabilitation Project to Baxter Woodman Consulting Engineers in the amount of $57,570.00.

 

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

 

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

 

A.            Presented Electricity Procurement – Zion Sludge Recycling Facility.

 

Assistant General Manager Miller recommended that the Board approve an addendum to the electricity supply agreement with Sempra Energy to include one megawatt of electricity at the Sludge Recycling Facility from April 2007 through April 2011, at fixed peak and off-peak prices.  The on-peak contract price (in US$/MWh) would be $71.89 and the off-peak contract price (in US$/MWh) would be $43.36.   Once electrical requirements at the facility are better defined, it is anticipated that the Staff will ask the Board to approve an amendment with Sempra Energy to procure an additional 0.5 MW to 1.0 MW.

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to approve the Electricity Procurement Contract Amendment for the Zion Sludge Recycling Facility with Sempra Energy.

 

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

 

B.       Presented the Natural Gas Procurement – Zion Sludge Recycling Facility.

 

Assistant General Manager Miller recommended that the District amend the existing CenterPoint Natural Gas Supply Agreement to include the Sludge Recycling Facility.

 

It was moved by Trustee Swarthout and seconded by Trustee Wroten to approve the Natural Gas Procurement Contract Amendment for the Zion Sludge Recycling Facility to CenterPoint Energy.

 

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

 

C.       Presented Naval Station Great Lakes Contract Modification P00014.

 

Assistant General Manager Miller recommended that the District execute Contract Modification P00014 to the Navy Sewerage Service Contract.  This amendment requires the Navy reimburse the District $6,742,891 for its share of previously completed capital improvement projects benefiting Naval Station Great Lakes and establishes a methodology for the Navy to pay its share of future capital improvement projects in a more timely manner.  A similar contract modification will be prepared soon to address the $372,643 in completed capital projects benefiting Fort Sheridan.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to approve the Naval Station Great Lakes Contract Modification P00014.

 

D.      Presented On-Line Payment Customer Refunds.

 

Assistant General Manager Miller reported that within the last several months, the District has received many payments that were intended to be paid to North Shore Gas.  The customer selects North Shore Sanitary District in error instead of North Shore Gas when intending to pay their gas bill.  After realizing the error, the customer calls the District and requests a refund.  Currently, the District debits the customer’s account and immediately issues a refund check which is shown on the Check Disbursement Listing presented to the Board at the next meeting, thereby creating a very lengthy Check Disbursement Listing.  This item is for information purposes only.

 

E.       Presented the following Bid Summaries.

 

1.        Bid No. 1268, Annual Usage of Process Chemicals.

i.      Sodium Hypochlorite – Rowell Chemical Corp., $459,774.00.

ii.     Hydrogen Peroxide – U.S. Peroxide, $136,320.00.

iii.    Sodium Hydroxide – Rowell Chemical Corp., $259,717.50.

iv.      Sodium Bisulfite – Basic Chemical Solutions, $16,896.00.

v.       Water Softener Salt – Rebid.

 

Assistant General Manager Miller reported that ten bids were received and opened Monday, February 26, 2007 at 10:00 a.m.  The intent of Bid No. 1268 was to establish a three-year price agreement for Sodium Hypochlorite, Hydrogen Peroxide, Sodium Hydroxide, Sodium Bisulfite and Water Softener Salt per bid specifications for the Gurnee STP, Waukegan STP, Clavey Road STP, PS-6, PS-7 and Sludge Recycling Facility.  NSSD provided bidders with estimated annual usages of process chemicals based on historical purchases for each location.  NSSD received bids for all chemicals except water softener salt.  Therefore, NSSD will re-bid water softener salt adding ice control salt to the new bid, as well.

 

The Purchasing Department has contacted various sanitary districts and municipal references for Rowell Chemical Corp and U.S. Peroxide LLC, and various municipal/industrial references for Basic Chemical Solutions LLC.  All references indicated they received satisfactory products and services.  Therefore, the Purchasing Department recommends the Board award Rowell Chemical Corp., U.S. Peroxide LLC and Basic Chemical Solutions LLC the process chemical contracts for being the lowest responsible bidders meeting the bid specifications and offering satisfactory services to their customers.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to award Bid No. 1268, Annual Usage of Process Chemicals for a three year contract as follows:

 

                                             i.            Sodium Hypochlorite to Rowell Chemical Corp in the amount of $459,774.00.

                                            ii.            Hydrogen Peroxide to U.S. Peroxide in the amount of $136,320.00.

                                          iii.            Sodium Hydroxide to Rowell Chemical Corp. in the amount of $259,717.50.

                                          iv.            Sodium Bisulfite to Basic Chemical Solutions in the amount of $16,896.00.

                                           v.            Water Softener Salt – Rebid.

 

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

 

2.        Bid No. 1270, Annual Usage of Automotive Fuel – Olson Oil Company.

 

Assistant General Manager Miller reported the District received two responses, which were opened Tuesday, February 13, 2007.    Bids results are as follows:

                                                                                                                        Fixed Price Differential

                                Vendor                                                   (5/1/07-4/30/08)  (5/1/08-4/30/09)