May 9, 2007

 

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

May 9, 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

                                John R. Paxton, Treasurer

                                James E. Swarthout

                                Effie Wroten

 

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, Director of Operations Gary Sowma and Director of Technology Services Pete Russo.

 

Comments from the public were as follows:

 

Bob Aitchison introduced himself from Del Mar Woods.  He said that Del Mar Woods services a 5 block sanitary sewer area between Wildwood and Rt. 22 and is unincorporated.   He stated that he had missed the Public Comment period and had some questions that he would like to address.  Mr. Aitchison asked if the North Shore Sanitary District would take responsibility for stormwater if they change their name, citing the fact that the Greater Chicago Water Reclamation District has responsibility for both sanitary and stormwater.  General Manager Dorn indicated that the Stormwater Management Commission has the responsibility for stormwater control in Lake County, and that the District would not be seeking that responsibility by changing its name.

 

Mr. Aitchison asked if his Board should carry Public Officials Liability coverage.  Trustee Paxton explained the purpose of that coverage.

 

President Pierce presented the Consent Agenda as follows:

 

A.            Approval of the Minutes of the Meeting held on April 11, 2007.

B.            Consideration of Bills.

                Wastewater Treatment Fund.                                            $2,027,493.33

                Check Nos. 136223 through 136314.

                Check Nos. 136315 through 136512, 136527 through 136614.

                Voided Check No.s 136240, 136249 through 136251, 136260 through 136262

C.            Financial Report, March 2007.

D.            Hearing Summary, April 9, 2007.

E.             Fee Waiver Request.

                                1.     Six Flags Great America, Gurnee – Fee Waivers of $5,826.56 & $582.66.

F.             1st Quarter 2007 Worker’s Compensation Claim Update.

G.            2006 EAV, Tax Rates & Extension Summary.

H.            Water Shut-off Schedule Spring 2007.

I.              Bargaining Unit Ratification of Collective Bargaining Unit Agreement for period from May 1, 2007 through April 30, 2010.

J.             04/06/07 IMRF Memorandum regarding 2006 Investment Return and impact on Employer Contribution Rates.

K.            05/03/07 IPRF Safety Grant Memorandum.

L.             Press Articles.

                1.     Lake County News Sun.

                        i.      ‘NSSD wants to change its name’, 04/24/07.

M.           Thank You Card.

                1.     Bill Stoltz & Family.

N.            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 Swarthout 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 Senate Bill number 684 had been referred to the Illinois House of Representatives Rules Committee.  Trustee Pierce stated that the bill would be heard next week by the Local Government Committee with Representative Eddie Washington sponsoring the Bill and that we will have to wait and see what happens.

 

General Manager Dorn presented the Management Report as follows:

 

A.                  Adoption of FY08 Capital Improvement Plan.

 

General Manager Dorn gave an overview of the proposed FY08 Capital Improvement Plan and requested that the Board adopt the plan.  The Tentative Combined Annual Budget and Appropriation Ordinance will be presented at the June Board meeting for approval.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to Adopt the FY08 Capital Improvement Plan.

 

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

 

                B.            Presented Zion Township Landfill Sludge Recycling Monthly Status Report.

 

General Manager Dorn reported that all contract work has now been completed, and that the air emissions testing required by the IEPA Bureau of Air construction permit was conducted the weeks of March 26th and April 2nd.  The emissions from the melter stack were all well below the permitted limits.  The odorous air scrubber stack emissions were also below the permitted limits.  The exhaust gas from the auxiliary heater stack was below the permitted emissions limit but slightly exceeded the operational limit permitted for the equipment.  The District is working with the auxiliary heater vendor to resolve this apparent performance issue.  Once this issue is resolved, the emissions from the auxiliary heater stack will be retested.

 

The District continues to work with Minergy to resolve operational issues associated with the facility.  Minergy replaced a section of refractory in Zone 1 of the melter that had worn earlier than anticipated.  Minergy attributed this premature failure to the frequent cold shutdowns of the oxygen system which occurred during the initial startup of the melter.  Linde is scheduled to be onsite this coming week to correct molecular sieve leaks recently discovered during operation of the oxygen system.  They are also scheduled to visit the site in late May to correct instrumentation problems associated with past system trips.

 

Trustee Paxton commented that the permitted limit for mercury emissions is 1.77 lb/yr.  The actual amount emitted during the test was equivalent to .026 lb/yr which is well below the permitted limit.  Both Trustees Paxton and Swarthout commented that aside from some operational problems that the overall project has been very successful.

 

C.                   Presented American Academy of Environmental Engineers 2007 Superior Achievement Award for Sludge Recycling Facility.

 

General Manager Dorn introduced Brian Jensen from Donohue and Associates, Inc. who gave a brief overview on the North Shore Sanitary District’s Zion Township Sludge Recycling Facility winning the Superior Achievement Award from the American Academy of Environmental Engineers.  The award was selected from six categories by an independent panel of experts in environmental engineering.  The Academy cited both Donohue & Associates and NSSD for collaborative efforts in designing the world’s first Biosolids vitrification facility, which will be able to convert up to 200 tons daily of municipal Biosolids into 75 tons of commercially reusable glasslike aggregate by drying and melting sanitary sewage sludge.  Brian Jensen presented a poster board showing the Sludge Recycling Facility project.   Mr. Jensen noted that Academy judges were particularly impressed with the project’s ability “to meet all applicable government environmental regulations for air quality and solid waste management.”

 

The Excellence in Environmental Engineering competition of the American Academy of Environmental Engineers exists to identify and reward the best of today’s environmental engineering.  Its criteria define what it takes to be the best in a holistic environmental perspective, innovation, proven performance and customer satisfaction, and contribution to an improved quality of life and economic efficiency.  It was a great honor for the North Shore Sanitary District’s Sludge Recycling Facility to achieve this excellence award.  The award announcement was published in the “Environmental Engineer” Magazine Spring 2007 edition.

 

It was noted by Trustee Swarthout that this is a great achievement to win this award stating there were so many people against this project at the start.  It has proven to be an overall good project and the most environmentally sound biosolids disposal method ever developed.

 

D.                  Presented Donohue Backcharges related to Sludge Recycling Facility.

 

General Manager Dorn reported that over the past several months the District and Donohue have collectively reviewed both the formal and informal change order requests submitted by general contractors for both the Sludge Recycling Facility and Off-site Force Main.  After a comprehensive assessment of each change order claim, the District and Donohue have agreed there are items for which Donohue is responsible for the associated change order costs.  There are a total of 34 items for which Donohue has agreed to reimburse the District a total of $178,300.00.

 

If the Board agrees with claim items and dollar value, Donohue will submit a check to the District in the amount of $178,300 for acceptance at the Board meeting in June.  Donohue will provide the District a copy of the proposed release language for review and acceptance prior to the next meeting.

 

It was moved by Trustee Swarthout and seconded by Trustee Paxton to approve Donohue Backcharges related to the Sludge Recycling Facility in the amount of $178,300.00.

 

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

 

E.                   Presented Engineering Agreement Amendment.

1.     STS Consultants, Ltd., Melter Air Compliance Support, Contract Amendment No. 3, $5,000.00.

 

General Manager Dorn reported that this Contract Amendment No. 3 was for STS Consultants, Ltd. to continue to provide air permit and regulatory compliance support consulting services.

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to approve Engineering Agreement Contract Amendment No. 3 with STS Consultants, Ltd., for Melter Air Compliance Support, in the amount of $5,000.00.

 

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

 

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

 

A.            Presented Daniel Florek, 1911 Galilee Ave., Zion – Request to Waive Hearing Fees and Title Search Fees in the amount of $231.78.

 

Assistant General Manager Miller stated that the case of Mr. Daniel Florek had been previously heard at the last Board meeting and that his recommendation was not to waive the hearing and title fees in the amount of $231.78.  President Pierce inquired about the $90.00 Attorney fee which was established in our Ordinance many years ago which could be possibly waived since it is not an out of pocket expense.  Trustee Paxton asked Mr. Florek if that offer would be acceptable.  Mr. Florek’s response was that he was looking for the fees to be cut in half. 

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to not waive the Hearing Fees and Title Search Fees in the amount of $231.78 for Daniel Florek.

 

On roll call, three Trustees present voted “Nay”.  Two Trustees voted “Aye”.  Motion to not waive the Fees as stated did not pass.

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to waive only the Attorney fee of $90.00 for a total cost of $141.78 for Hearing Fees and Title Search Fees for Daniel Florek, 1911 Galilee Avenue, Zion.

 

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

 

B.                   Presented EnergyConnect Reliability and Demand Response Program Agreement.

 

Assistant General Manager Miller presented the terms and conditions of the Reliability Program agreement as such that the District agrees to reduce its load (likely by initiating standby generators) within 2 hours of being notified that PJM has declared an “interruptible load for reliability event.”  PJM may call up to 10 such events during the year, for up to six hours per event.  According to ComEd, three such events were called in the ComEd service area last year.

 

The Demand Response Program states that the District also agrees to make good faith efforts to reduce its load (again, likely by initiating standby generators) upon notification that PJM has declared a “real time dispatch event.”  There are no program limitations to the number of these events that may be called, however, the District is never contractually obligated to perform.

 

In exchange for its participation commitment, the District will receive payments totaling $58,000 per year for the reliability program and $34,800 per year for the demand response program.  Furthermore, EnergyConnect has agreed to accept the District’s fuel risk, in the unlikely event that the real-time market electricity prices paid to the District are insufficient to cover the natural gas costs to operate the generators during a reliability event.  Finally, once EnergyConnect has recouped the $34,800 guaranteed under the demand response program, they will share all additional demand response revenues with the District on a 50/50 basis.

 

It was moved by Trustee Paxton and seconded by Trustee Wroten to approve the EnergyConnect Reliability and Demand Response Program Agreement.

 

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

 

C.                   Presented the following Bid Summary.

1.        Bid No. 1273, Industrial/Commercial Cleaning and On-Site Inspection Services at Various NSSD Locations – Cancel Award to Uni-Max Management Corp. and award to Perfect Cleaning Services, Inc. in the amount of $583,680.00.

 

Assistant General Manager Miller reported that the bid was originally awarded to Uni-Max Management Corp. at the Board meeting on April 11, 2007.  However, on April 25, 2007, the Purchasing Department received confirmation from Uni-Max Management Corp. that they are not able to meet the performance bond requirements as stated in the bid specifications.

 

The Purchasing Department recommends that the award of Bid No. 1273 to Uni-Max Management Corp. be canceled.  The Purchasing Department further recommends that this bid be award to Perfect Cleaning Services, Inc. the next lowest responsive bidder who meets the requirements and criteria as set fourth in the contract documents.

 

It was moved by Trustee Drew and seconded by Trustee Swarthout that the award of Bid No. 1273 to Uni-Max Management Corp. be canceled and award the bid to Perfect Cleaning Services, Inc. in the amount of $583,680.00.

 

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

 

Director of Engineering Services Jai Gupta gave the Engineering Division report as follows:

 

A.                  Presented the following Bid Summaries.

1.        Pump Drive Replacement Project at Clavey Road and Waukegan STPs and Cary Avenue Pumping Station (PS8) – Pieper Electric Inc. of Milwaukee, WI in the amount of $1,080,000.00.

 

Director of Engineering Services Gupta reported that on April 26, 2007, bids were opened at 11:00 am in the offices of the North Shore Sanitary District in Gurnee, Illinois for performing the Pump Drive Replacements for the Clavey Road and Waukegan Sewage Treatment Plants and the Cary Avenue Pumping Station (PS-8). 

 

Only one bid was received.  This bid was submitted by Pieper Electric, Inc. of Milwaukee, Wisconsin.  The lump sum bid price was read aloud to be $1,080,000.00.  The Engineer’s Estimate was $1,582,783.00.  Therefore, Short Elliott Hendrickson Inc., the District’s consultant for the project, recommends that the bid be award to Pieper Electric, Inc. of Milwaukee, Wisconsin.

 

It was moved by Trustee Swarthout and seconded by Trustee Paxton to award the Pump Drive Replacement Project at Clavey Road and Waukegan STPs and Cary Avenue Pumping Station (PS-8) to Pieper Electric Inc. of Milwaukee, WI in the amount of $1,080,000.00.

 

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

 

2.        Valve and Actuator Replacement at the Clavey Road and Waukegan STPs – Reject all Bids.

 

Director of Engineering Services Gupta reported that on April 10, 2007, at 11:00 A.M. the bids were publicly opened and read aloud.  The results are as follows:

 

                                Contractor                                                             Total Bid Price

                                Martin Peterson Company                                    $91,100.00

                                Budget Amount                                                      $71,900.00

 

Director of Engineering Services Gupta reported that based on the fact that the bid we received was $19,000.00 over the budgeted amount, it is recommended that we re-invite bids for this project.

 

It was moved by Trustee Paxton and seconded by Trustee Drew to reject all bids for the Valve and Actuator Replacement at the Clavey Road and Waukegan STPs.

 

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

 

3.        Lab Hood Blower Replacement and Relocation at Administration Building – Air Con Refrigeration and Heating, Inc. of Waukegan, IL in the amount of $22,974.00.

 

Director of Engineering Services Gupta reported that on April 27, 2007 at 11:00 A.M., bids were publicly opened and read aloud.  The bid results are as follows:

 

                                Contractor                                                             Total Bid Price

                                Air Con Refrigeration and Heating                      $22,974.00

                                Budget Amount                                                      $23,700.00

 

Director of Engineering Services Gupta reported that the bid is approximately $700 less than the District’s budgeted amount.  Therefore, the Staff recommends that the bid be awarded to Air Con Refrigeration and Heating in the amount of $22,974.00.

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to award the Lab Hood Blower Replacement and Relocation at Administration Building to Air Con Refrigeration and Heating, Inc. of Waukegan, IL in the amount of $22,974.00.

 

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

 

4.        FY08 Heating and Ventilating Modifications at the Gurnee, Waukegan and Clavey Road STPs and Lake Bluff Pumping (PS6) and Cary Avenue (PS8) Pumping Stations – Reject Sole Bid.

 

Director of Engineering Services Gupta reported that on May 2, 2007 at 11:00 A.M., bids were publicly opened and read aloud.  The bid results are as follows:

 

                                Contractor                                             Total Bid Price

                                McDonough Mechanical                      $300,349.00

                                Budget Amount                                      $250,409.00

 

Director of Engineering Services Gupta reported that the sole bid for the project came in 20% higher than the budgeted amount.  It was the Staff’s recommendation to reject this bid and re-bid the project.

 

It was moved by Trustee Paxton and seconded by Trustee Drew that the bid for the FY08 Heating and Ventilating Modifications at the Gurnee, Waukegan and Clavey Road STPs and Lake Bluff (PS6) and Cary Avenue (PS8) Pumping Stations be rejected.

 

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