March 19, 2008

 

Minutes of the regular meeting of the Board of Trustees of the North Shore Sanitary District held on Wednesday, March 19, 2008 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 from Del Mar Woods Sanitary District extended a thank-you to Assistant General Manager Miller for recommending at the last Board meeting that Mr. Aitchison contact the State Treasurer’s office about interest rates and investment practices with respect to the Sanitary District in Del Mar Woods.  Mr. Aitchison spoke with Ms. Woods of the State Treasurer’s office and received the information that he sought. 

 

President Pierce presented the Consent Agenda, as follows:

 

A.      Approval of the Minutes of the Meeting held on February 13, 2008.

B.       Consideration of Bills.

Wastewater Treatment Fund                                     $2,357,983.95

Check No. 140100, Check Nos. 140126 through 140208,

Check Nos. 140210 through 140477, Check Nos. 140485 through 140500.

C.       Financial Report, January 2008.

D.      Hearing Summary, February 12, 2008.

E.       Fair Lending Violation Review.

F.       2007 Fixed Asset Audit Results.

G.       User Charge Account Credit Balance Refunds.

H.      Spare Parts for North Silo Sludge Pumps at Zion Sludge Recycling Facility.

I.         NACWA 2008 National Environmental Achievement Award – Research & Technology.

J.        Annexation Ordinance.

1.        No. 436, Submitted by Panatonni Construction, Inc. for approximately 50.5 acres for

        Commercial/industrial use located immediately west of Green Bay Road and south

        of Russell Road, in the City of Zion.

 

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:

 

SERVICE AREA

THAT PART OF LOT 2 OF THE EAST FRACTIONAL HALF OF SECTION 1, TOWNSHIP 46 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING SOUTH AND WEST OF THE FOLLOWING DESCRIBED PARCELS, IN LAKE COUNTY, ILLINOIS:

 

PARCEL 1:

COMMENCING AT THE INTERSECTION OF THE CENTER LINE OF GREEN BAY ROAD AND THE NORTH LINE OF THE EAST HALF OF SAID FRACTIONAL SECTION 1; THENCE WEST ALONG THE NORTH LINE OF THE EAST HALF OF SAID FRACTIONAL SECTION 1, A DISTANCE OF 194 FEET; THENCE SOUTH AT RIGHT ANGLES TO THE LAST DESCRIBED LINE, A DISTANCE OF 294.75 FEET; THENCE EAST AT RIGHT ANGLES TO THE LAST DESCRIBED LINE, A DISTANCE OF 256 FEET TO THE CENTER LINE OF GREEN BAY ROAD; THENCE NORTHWESTERLY ALONG THE CENTERLINE OF GREEN BAY ROAD, A DISTANCE OF 301.25 FEET TO THE POINT OF BEGINNING;

 

PACEL 2:

COMMENCING AT THE NORTHWEST CORNER OF SAID LOT 2 AND RUNNING THENCE ON AN ASSUMED BEARING OF NORTH 90 DEGREES 00 MINUTES 00 SECONDS EAST ON THE NORTH LINE THEREOF 1649.77 FEET TO A POINT ON THE CENTER LINE OF GREEN BAY ROAD, SAID POINT BEING ON A 5510.28 FOOT RADIUS CURVE, THE CENTER OF CIRCLE OF SAID CURVE BEARS NORTH 79 DEGREES 41 MINUTES 14 SECONDS EAST FROM SAID POINT; THENCE (THE FOLLOWING 3 COURSES BEING ALONG THE CENTER LINE OF SAID GREEN BAY ROAD) SOUTHEASTERLY ALONG SAID CURVE 301.24 FEET, CENTRAL ANGLE 3 DEGREES 07 MINUTES 56 SECONDS TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTHEASTERLY ALONG SAID CURVE 4.26 FEET, CENTRAL ANGLE 0 DEGREES 02 MINUTES 40 SECONDS; THENCE SOUTH 13 DEGREES 29 MINUTES 22 SECONDS EAST ALONG TANGENT 1077.15 FEET TO THE SOUTH LINE OF THE AFORESAID LOT 2; THENCE NORTH 89 DEGREES 28 MINUTES 34 SECONDS WEST ON SAID SOUTH LINE 61.84 FEET TO A LINE 60.00 FEET WESTERLY OF AND PARALLEL WITH THE CENTER LINE OF SAID GREEN BAY ROAD; THENCE NORTH 13 DEGREES 29 MINUTES 22 SECONDS WEST ON SAID PARALLEL LINE 642.74 FEET; THENCE SOUTH 76 DEGREES 30 MINUTES 38 SECONDS WEST 10.00 FEET; THENCE NORTH 13 DEGREES 29 MINUTES 22 SECONDS WEST 440.50 FEET; THENCE NORTH 90 DEGREES 00 MINUTES 00 SECONDS EAST 71.99 FEET TO THE POINT OF BEGINNING.

 

CONTAINING 2,200,406 SQUARE FEET OR 50.514 ACRES MORE OR LESS.

 

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.

K.      Correspondence.

1.        03/06/08 letter from USPEA regarding compliance with and closing of Administrative

Order Docket No. V-W-02-AO-05.

        2.     02/07/08 letter from James Ulrich regarding odors in Zion and 02/15/08 NSSD response.

        3.     03/12/08 letter from Park District of Highland Park regarding relocation of NSSD Park

                Avenue Pumping Station.

L.     Press Articles.

        1.     Lake County News Sun.

                i.              ‘Sludge Plant’, Talk of the County, 03/12/08.

        2.     Milwaukee Journal Sentinel.

                i.              ‘Dentists filtering out mercury’, 02/10/08.

                ii.             ‘Drug disposal advocated for lake’s sake’, 03/10/08.

M.   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 Drew, that the items under the Consent Agenda be approved.

 

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

 

There was no President Report from President Pierce.

 

General Manager Dorn presented the Management Report as follows:

 

A.      Presented Consulting Services Agreement – Cagwood Consulting.

 

General Manager Dorn reported that the purpose of this Consulting Services Agreement is to help North Shore Sanitary District with several issues.  These issues include providing public relations services for the District by giving correct information to the public regarding District activities and providing liaison services with officials to obtain federal and state financial grants for projects.

 

The agreement with Cagwood Consulting shall include their best effort to promote business, products, reputation and interest of the NSSD through the performance of consulting services which include, but are not limited to, the following items:

 

  • Providing the NSSD with public relations counsel;
  • Representing the NSSD with Federal officials and agencies;
  • Representing the NSSD with elected State officials.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew, that the Consulting Services Agreement with Cagwood Consulting be approved.

 

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

 

Christopher Ganschow from Cagwood Consulting then introduced himself and thanked the Board of Trustees and General Manager Dorn for the opportunity to work with them and provide consulting services to the North Shore Sanitary District.

 

B.    Presented Donohue & Associates, Inc. Release.

 

At the May 9, 2007 Board meeting, the Board approved Donohue’s reimbursement to the District of backcharges amounting to $178,300 related to design errors in the design of the Sludge Recycling Facility.  In return for the reimbursement, Donohue is requesting that the District release them from any actions or claims for additional costs or expenses that the District could have brought against Donohue with respect to correcting the items set forth in Exhibit A of the Release.  Exhibit A consists of a list of 64 components on the project that were corrected, and were the basis of the $178,300 backcharged to Donohue.

 

General Manager Dorn stated that the Release specifically covers only costs related to correcting the 64 items contained on Exhibit A, and does not prohibit the District from seeking future reimbursement for correcting design errors not contained on Exhibit A.

 

President Pierce stated that he would like to review the contents of this Release further with the District’s legal counsel.  His recommendation was to hold it over to the next Board meeting to allow time to review the Release thoroughly before entering into any such Agreement.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew that the Donohue & Associates, Inc. Release be held over and put on the Agenda for the April 9, 2008 Board meeting.

 

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

 

B.       Presented Engineering Agreement Amendments.

1.        Donohue & Associates, Inc. Zion Sludge Recycling Facilities Resident Engineering and O&M Services, Contract Amendment No. 6, Increase of $44,513.00.

 

General Manager Dorn stated that the Amendment to Contract No. 6 with Donohue & Associates, Inc. was related to Engineering Services associated with the replacement of the dryer’s plate – type heat exchanger coil.  The coil has experienced a failure in one of six sections of the heat exchanger.  Presently, the failed section of the heat exchanger has been isolated from the thermal oil loop because of a thermal oil leak in that section.  The dryer has lost approximately 17% of its design capacity as a result of this failure.

 

General Manager Dorn reported that the entire dryer system will be taken out of service for approximately 3 weeks to complete the replacement of this heater coil.  Donohue & Associates will provide technical support during the removal and replacement of the thermal oil heat exchanger.  This will include redesigning the thermal oil piping system to accommodate the new tube-type heat exchanger, on-site observation of the work during the removal and installation of the heat exchanger, assist in discussions with potential contractors, assist NSSD in reviewing pricing from the contractors selected and witness any required field testing.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew that Contract Amendment No. 6 to the Zion Recycling Facilities Resident Engineering and O&M Services Engineering Agreement with Donohue & Associates, Inc., in the amount of $44,513.00 be approved.

 

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

 

2.        STS Consultants, Ltd., Services Agreement for Hydrogeological Consulting Services at NSSD Zion Township Landfill, Contract Amendment No. 2, Increase of $17,019.00.

 

General Manager Dorn stated that this Engineering Contract Amendment is an extension of the continued hydrogeological consulting services associated with various solid waste disposal permitting-related tasks at the Zion Township Landfill.  The scope of work includes groundwater quality evaluations for wells G123 and A104, the preparation of responses to the IEPA permit renewal application comments and the supplemental costs for the Cell B east drilling program.

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout that Contract Amendment No. 2 to the Services Agreement for Hydrogeological Consulting Services at NSSD Zion Township Landfill with STS Consultants, Ltd., in the amount of $17,019.00 be approved.

 

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

 

C.    Presented Facility Tours Policy.

 

General Manager Dorn reported that Staff members have received multiple phone calls in recent months from Cub and Boy Scout Leaders, college instructors and others interested in touring the District’s wastewater treatment facilities.  All interested parties were told that the District stopped offering public tours of its wastewater treatment plants after 9/11.

 

General Manager Dorn reported that Staff performed a brief internet search regarding possible security concerns associated with wastewater treatment facilities offering public tours.  This search included contact with NACWA, IAWA and the EPA.  The general consensus within the wastewater community seems to be that offering tours of the wastewater treatment processes is an excellent, if not necessary form of public education and outreach.  The utilities that suspended tours as a result of 9/11 have since resumed offering public tours.  Registration and review of all participants prior to visiting the facilities are standard policies.

 

A discussion followed with a general consensus being that tours would be a good public outreach and that a policy shall be drafted stipulating certain safety and security guidelines that would be enforced.  General Manager Dorn stated that a draft policy would be prepared and presented to the Board for approval.

 

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

 

A.      Presented Sempra Energy Agreement Modification to add Trumpet Park Pumping Station PS14.

 

Assistant General Manager Miller stated this is a modification to the electricity supply agreement with Sempra Energy to add Trumpet Park Pumping Station, PS14.  This is a very small facility that will be served from the District’s already established electricity supply.  No additional fixed-price energy will be purchased by Sempra as a result of this change.  Adding this account will save the District money, as Sempra’s electricity pricing is significantly more favorable than the prices charged by ComEd.

 

It was moved by Trustee Paxton and seconded by Trustee Drew that Sempra Energy Agreement Modification to add Trumpet Park Pumping Station PS14 be approved.

 

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

 

B.       Presented Third Party Pledge Depository Agreement with Bridgeview Bank Group and Independent Bankers Bank.

 

Assistant General Manager Miller stated that the District’s Investment Policy requires that District deposits be secured by collateral held at a third party institution.  Bridgeview Bank Group previously used the LaSalle Bank N.A. as its custodial institution for collateral purposes and the District approved an agreement with these parties in February 2007.  Bridgeview Bank has decided to utilize Independent Bankers Bank as their new custodial partner, necessitating that new agreements be executed.

 

Bridgeview Bank has forwarded this agreement to establish the means, methods and procedures to carry out the collateralization process.  Once established, this collateral agreement will be applicable to all future investments.

 

It was moved by Trustee Paxton and seconded by Trustee Drew to approve the Third Party Pledge Depository Agreement with Bridgeview Bank Group and Independent Bankers Bank.

 

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

 

C.       Presented Andrew Goltra Request for User Charge Bill Reduction for 10 W. Westminster Road, Lake Forest.

 

Assistant General Manager Miller reported that the District is in receipt of a letter dated February 11, 2008 from. Andrew Goltra requesting an adjustment on his wastewater treatment bill.  Mr. Goltra received an invoice dated February 2, 2008 in the amount of $628.66 for 731 units of water consumption used at the service address of 10 W. Westminster Road, Lake Forest.  Mr. Goltra stated that the large water consumption was due to filling a pond on this property.

 

Mr. Goltra maintains that he received permission from the City of Lake Forest to empty his pond into the Lake Forest storm water system.  Assistant General Manager Miller verified this information with Bernard Pondexter, a City of Lake Forest engineer.  Mr. Pondexter confirmed that Mr. Goltra did indeed pump the pond water into the City of Lake Forest’s storm sewer.  Mr. Goltra then filled the pond using city water.  Mr. Goltra further stated that the water used to fill the pond did not enter the North Shore Sanitary District sewer and therefore was not treated by North Shore Sanitary District.

 

Assistant General Manager Miller stated the District’s ordinances, policies and past practices do not support the finance department applying an adjustment to this account.

 

Trustee Swarthout stated that he was familiar with Mr. Goltra’s situation and that he supported the fact that the water did not enter North Shore Sanitary District’s sewer and that he recommended giving him a break and reducing his bill to the average amount which would be approximately $18.92.

 

It was moved by Trustee Paxton and seconded by Trustee Drew to approve Andrew Goltra Request for User Charge Bill Reduction for 10 W. Westminster Road, Lake Forest and base his bill on the average monthly rate.

 

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

 

D.      Presented Bid Waiver Request.

        1.     BW-157, Engagement of Swarztrauber & Co. for Accounting Services and Audit of District’s Combined Annual Financial Statements for FY Ending 04/30/08, $44,500.00.

 

Assistant General Manager Miller reported that this Bid Waiver request is for the engagement of Swarztrauber & Company for accounting services and the audit of the District’s annual financial statements for the fiscal year ending April 30, 2008.  The cost for the audit of the fiscal year ending 4/30/07 shall not exceed $44,500.00.  Also, the District will budget $2,000 for auditor services relating to special projects that may arise, which are unrelated to the scope of the FY08 audit.

 

It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve BW-157, Engagement of Swarztrauber & Co. for Accounting Services and Audit of District’s Combined Annual Financial Statements for FY Ending 04/30/08 in the amount of $44,500.00 and an additional $2,000 for special projects.

 

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 Construction Change Orders.

1.     C.O. No. 9, Fluid Bed Sludge Dryer Procurement Agreement, VA Tech, Decrease of              $16,742.78.

2.        C.O. No. 1, Skokie Ditch Bridge Rehabilitation at the Clavey Road STP, Lakes & Rivers Contracting, Inc., Increase of 170 Calendar Days.

3.        C.O. No. 1, FY08 HV Replacement Project at Gurnee, Waukegan & Clavey Road STPs and PS7 & PS8, McDonough Mechanical Services, Inc., Increase of 46 Calendar Days.

4.        C.O. No. 1, FY08 Painting Project at the Clavey Road STP, Era Valdivia Contractors, Inc., Decrease of $850.96 and Increase of 61 Calendar Days.

 

It was moved by Trustee Swarthout and seconded by Trustee Drew to approve C.O. No. 9, Fluid Bed Sludge Dryer Procurement Agreement, VA Tech, a Decrease of $16,742.78.

 

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

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to approve C.O. No. 1, Skokie Ditch Bridge Rehabilitation at the Clavey Road STP, Lakes & River Contracting, Inc., an Increase of 170 Calendar Days.

 

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

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to approve C.O. No. 1, FY08 HV Replacement Project at Gurnee, Waukegan & Clavey Road STPs and PS7 and PS8, McDonough Mechanical Services, Inc., an Increase of 46 Calendar Days.

 

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

 

It was moved by Trustee Drew and seconded by Trustee Swarthout to approve C.O. No. 1, FY08 Painting Project at the Clavey Road STP, Era Valdivia Contractors, Inc., a Decrease of $850.96 and Increase of 61 Calendar Days.

 

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

 

Director of Laboratory Services Division Robinson reported as follows:

 

A.      CompX Security Products Request to Waive Administrative Violation Penalty Fee.

 

Director of Laboratory Services Robinson reported that representatives from CompX were present to explain their request to the Board.  Director of Laboratory Services Robinson started with a brief overview of their company.  CompX was created as a combination of two companies, one located in the District in Lake Bluff and the other outside of the District located in Riverwoods.  The two companies merged to form CompX which is now located at 715 Center Street in Grayslake.  Director of Laboratory Services Robinson stated that an error was made in their initial permit application with the IEPA.  In conjunction with this error, CompX was assessed a $2,000.00 fine for No Written Notification upon start-up of a Federally-regulated categorical p