Minutes of the regular meeting of
the Board of Trustees of the North Shore Sanitary District held on
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
Staff members present were
General Manager
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
B.
Consideration of
Bills.
Wastewater Treatment Fund $1,960,856.88
Check No. 140209, Check No. 140478, Check Nos. 140480
through 140484,
Check Nos. 140501 through 140686, Check Nos. 140694
through 140742.
Void Check No. 140479.
C.
Financial Report,
February 2008.
D.
Hearing Summary,
E.
2007
Uncollectible Accounts Receivable Summary.
F.
Water Shut-off
Schedule Spring 2008.
G. Press Articles.
1.
i. ‘NSSD seeks to polish its image’,
ii. ‘NSSD PR’, Talk of the County,
iii. ‘Sludge talk can be a drudge’, As I See
It, 03/29-30/08.
iv. ‘Over budget’, Talk of the County,
v. ‘PR shield’, Talk of the County,
04/5-6/08.
2.
i. ‘Drink up’,
H. Thank You
Card.
1. Alex Rosario Family.
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.
President Pierce presented the President report as follows:
President
Pierce stated that he received information through our new Consultant, Chris
Ganschow, that the Federal Government and the U.S. Army Corps of Engineers may have
Federal funds available for some of our lakefront facilities projects. President Pierce stated that he, General
Manager Dorn and staff would be attending a meeting in
President
Pierce stated that he would be leaving for
General
Manager Dorn presented the Management report as follows:
A. Presented Engineering Agreements.
1. Donohue
& Associates, Inc.,
General Manager Dorn reported that this project consists of developing an odor control strategy for each of the two pump stations and developing a final design for the selected odor control technology. The project will consist of two major phases: data analysis/preliminary design phase and final design phase for the selected alternative for each pump station. Donohue & Associates will also retain sub-consultant Tom Card to provide technical support on this project.
It was moved by Trustee Swarthout
and seconded by Trustee Drew, that the Winthrop
Harbor Pump Station (PS-1A) and Lake Bluff Pump Station (PS-6) Odor Control
Improvement Agreement with Donohue & Associates, Inc. in the amount not to
exceed $89,630.00 be approved.
On
roll call, all Trustees present voted "Aye". Motion declared carried.
B. Presented Clark Dietz, Inc.,
General Manager Dorn stated that this Agreement with Clark Dietz was to replace the existing 480 volt switchboard section of USS-2 located outside Building 340 at the Gurnee STP with a new switchboard located inside Building 340. The switchboard sections sit on an open vault that fills with water; subsequently the moisture has caused severe corrosion of the electrical equipment over the years.
General Manager
Dorn stated that he would like to hold this item over to the next Board meeting
based on further review of the Agreement proposed by Clark Dietz. General Manager Dorn stated he was not
satisfied with some of the language contained in the Agreement regarding limits
of liability and other contractual issues.
B.
Presented Engineering
Agreement Amendment.
1.
Donohue &
Associates, Inc.,
General Manager Dorn stated that the Amendment to
Contract No. 6 with Donohue & Associates, Inc. consists of two
components. Amendment No. 5 provided
SMC-mandated designated erosion control inspection during the construction of
the interim pump station and forcemain.
The erosion control inspection has now been completed for the interim
pump station and forcemain. The
inspection fee for this task was originally based upon a cost of $500.00 per
inspection with 12 inspections estimated to complete the work. A total of $3,068.00 was billed for this
task. Therefore, the not to exceed
amount of $6,000.00 shall be decreased by $2,932.00.
General Manager Dorn stated the design of this project
has encountered delays resulting from feasibility concerns, forcemain routing
alternatives and development of an interim pump station and forcemain
system. These delays were not attributed
to Donohue. As a result of these delays
Donohue has incurred cost over-runs on this project. The over-run on this project is
$15,013.00. Donohue is requesting a
change order in the amount of $13,648.00 which would cover their direct and
indirect costs. The profit is being
waived.
The net increase of the two components making up this
contract amendment is $10,716.00.
It was moved by Trustee Swarthout and seconded by
Trustee Paxton that Contract Amendment No. 6 to the Trumpet
Technology Park Interceptor and Forcemain Study and Design with Donohue &
Associates, Inc. an increase of $10,716.00 be approved.
On
roll call, all Trustees present voted "Aye". Motion declared carried.
C. Presented Facility
General Manager Dorn reported
that as discussed at the last Board meeting, a Public Tours Policy has been drafted
consisting of Tour Guidelines and a Public Tour Application Form which must be
completed before any tour will be given.
General Manager Dorn stated that the Tour Policy would be put on our
website and be made available to the public.
A discussion followed on which
STP would be toured with a general consensus being that the Gurnee STP would
probably be requested the most in conjunction with the Laboratory. General Manager Dorn stated that if a special
plant tour is requested, a tour would be conducted of that specific facility based
on the request.
It was moved by Trustee Paxton
and seconded by Trustee Swarthout that the Public Tours Policy be adopted.
On
roll call, all Trustees present voted "Aye". Motion declared carried.
Assistant General Manager Miller presented the
Administration Division report as follows:
A. Presented Insurance Renewal, West Insurance Agency.
1. Property/Casualty
Insurance Renewal.
2. Life,
Medical & Dental Renewal.
3. Cobra
& IMRF Insurance Continuation Rates.
Assistant General Manager Miller introduced Brad West and Ed Shultis of West Insurance who presented to the Board the following insurance renewals.
Brad West presented an overview of the Property/Casualty renewal quotation which included quotations from the Federal Insurance Company, the OneBeacon Insurance Company and the Ohio Casualty Company. All these companies are rated “A” Excellent financially or better. The estimated annual premium of the program as proposed is $356,969 and provides the coverage as outlined in the property, liability, inland marine, crime, automobile, umbrella and public official’s liability sections. The quotations include the peril of “terrorism” and represent a 1.6% increase over the expiring premiums. The property renewal premium has decreased 1% even with a 4.4% increase in property values. Mr. West stated that he recommends a change in the casualty carrier from the St. Paul Travelers Insurance Company to the OneBeacon Insurance Company. Mr. West stated his recommendation was based upon the broader coverage being offered by the OneBeacon program as reflected on the premium comparison spread sheet included in the packet.
It was moved by Trustee Paxton and seconded by Trustee Swarthout to approve the renewal of the Property/Casualty Insurance recommended by West Insurance.
On roll call, all Trustees
present voted “Aye”. Motion declared
carried.
Mr. Ed Shultis of West Insurance then presented the Life, Medical and Dental renewal along with the COBRA and IMRF continuation quotations. Mr. Shultis stated that Employee Term Life rates will increase from $0.35 to $0.377 per $1,000 face amount. Accidental Death and Dismemberment rates will remain at $0.04 per $1,000. The small increase will be $1,570.00 annually based on the census information including salaries provided to AIG/American General.
Allied Benefit’s (the current
administrator for our Medical/Dental coverage) current administration fees are
guaranteed to
Allied Benefit Administration fees No Change
PHCS (Private Healthcare) PPO fees No Change
Specific Stop loss premiums $11,400
Aggregate Stop loss premiums No Change
Allied requested stop loss
insurance quotes from six carriers. Three
declined to quote either due to not being competitive at this time or average
age of the group. One carrier,
Monumental Life was $11,277.72 less than HCC Life’s renewal quote. However, Monumental will only cover claims
incurred in the 12 months prior to
Allied has changed their recommended medical management precertification vendor from Active Health Management (AHM) to American Health Holding (AHH) due to superior service from American Health. Allied is requesting that the District consider making this change. There is no change in cost to the District.
Allied has suggested that the
District implement their new Kidney Dialysis Cost Management Program. 1 in 9
West Insurance recommends that the Board approve the new life insurance and stop loss rates, new medical management company (AHH), adopt the new Dialysis claims management strategy and approve the new Cobra/IMRF continuation rates as provided in the packet.
It was moved by Trustee Paxton and seconded by Trustee Swarthout to renew the Life, Medical and Dental Insurance along with the COBRA and IMRF renewals as recommended by West Insurance.
On
roll call, all Trustees present voted “Aye”.
Motion declared carried.
B. Presented Group Benefit Plan Endorsement 08-01 –
Reinstatement of Full-Time Student Status.
Assistant
General Manager Miller stated that there are times when college students take a
semester or two off from school. According
to Allied Benefits, the District’s Group Benefit Plan does not allow dependents
be reinstated to the insurance once they lose their “dependent” status (i.e.,
when they are older than 19 and no longer qualify as a “full-time student”).
In
order to allow a dependent upon resuming “full-time student” status to be
reinstated after a period of time not being on the plan, Allied is requesting
that the Board approve Group Benefit Plan Endorsement 08-01.
It was moved by Trustee Paxton and seconded by Trustee
Swarthout to approve Group Benefit Plan Endorsement 08-01 – Reinstatement of
Full-Time Student Status.
On
roll call, all Trustees present voted "Aye". Motion declared carried.
C.
Presented Natural
Gas Generator Agreements with North Shore Gas Company.
Assistant
General Manager Miller reported that North Shore Gas currently provides service
to eight natural gas generators under Service Classification No. 5 – Standby
Service. These generators are located at
the Waukegan STP, Clavey Road STP, Gurnee STP, Skokie Valley Pump Station PS-5
and Lake Forest Pump Station PS-7. North
Shore Gas is in the process of implementing a new rate structure and is
requiring that new contracts be executed for each of these accounts.
Assistant
General Manager Miller stated that the District will likely realize a slight
decrease in costs for the aforementioned accounts as the decrease in demand
charges will outweigh the increases in both customer and distribution
charges. It was noted that generators at
other District facilities are diesel-powered and, therefore, are not affected
by North Shore Gas agreements.
It
was moved by Trustee Swarthout and seconded by Trustee Drew to approve the
Natural Gas Generator Agreements with North Shore Gas Company.
On
roll call, all Trustees present voted "Aye". Motion declared carried.
D. Presented Increase in District Competitive Bid
Threshold.
Assistant General Manager Miller reported that Section 11 of the North Shore Sanitary District Act [70 ILCS 2305] provides that the District has a “mandatory competitive bid threshold” equal to 0.1% of the total general fixed assets of the District. As documented by the most recent audit, the District’s Property Plants and Equipment of $417,526,775, less Accumulated Depreciation of $221,055,038, equal Net Fixed Assets of $196,471,737, and, pursuant to the Act, a corresponding “mandatory competitive bid threshold” of $196,471. Section 11 further provides that, “In no event, however, shall the mandatory competitive bid threshold dollar amount be less than $10,000, nor more than $40,000.” Accordingly, the Board is authorized to establish a bid threshold of up to $40,000.
Assistant General Manager Miller stated that the District’s threshold hasn’t changed for 22 years. There have been only 3 increases in this limit since the District’s inception. An increasing number of bids, bid waivers and emergency authorizations are being completed because of the $10,000 limit. As a result, repairs, purchases and services are often delayed for several weeks either awaiting the Board to grant a bid waiver request, or while conducting the bidding process (preparing specifications, advertising a bid, recommending Board approval, awarding a contract and activating the successful contractor). Furthermore, there typically is little interest from contractors to bid these relatively small projects. This in turn, frequently results in awards based upon only one or two submissions. Contractors seem more inclined to provide a quotation on smaller projects, and the District controls and minimizes costs by seeking no less than 3 quotations on any work, goods or services exceeding $1,000.
A two-year evaluation of requested Board actions documents the impact of a $25,000 bid threshold:
It
was moved by Trustee Paxton and seconded by Trustee Drew to approve the
Increase in District Competitive Bid Threshold from $10,000.00 to $25,000.00.
On
roll call, all Trustees present voted "Aye". Motion declared carried.
E. Presented the following Bid Summaries.
1. Bid No.
1287, Electrical Supplies – Steiner Electric Supply, $23,341.10.
Bids were advertised in the paper
and mailed to six potential vendors. On
|
|
Steiner Electric
Supply |
Goodman Electric
Supply |
Interstate Electric
Supply |
|
Total Estimated Delivered Annual
Cost |
$11,670.55 |
$12,938.24** |
$14,718.63*** |
|
Total Estimated Delivered Annual
Cost |
$11,670.55 |
$13,352.37** |
$17,028.35*** |
|
Total Estimated 2-year Contract
Cost |
$23,341.10* |
$26,290.61** |
$31,746.98*** |
|
General Discount from Catalog
Prices |
15% |
30% min. |
60% |
*A
representative from Steiner Electric Supply indicated at the bid opening that
their Bid Offer Acceptance form was completed incorrectly, and that the Total
Estimated 2-year Contract Cost should be the total of both $11,670.55
(5/1/08-4/30/09) and $11,670.55 (5/1/09-4/30/10), not $11,670.55 as
indicated. Pursuant to the District’s
Terms and Conditions, “In case of error in the extension of prices in the bid,
the unit prices will govern.”
**Goodman
Electric Supply’s Bid Offer Acceptance form reflected an error in bid
costs. The Total Estimated 2-year
Contract Cost is $26,290.61, not $26,290.81.
Pursuant to the District’s Terms and Conditions, “In case of error in
the extension of prices in the bid, the unit prices will govern.” Goodman also indicated prices for steel
products were contingent upon market conditions. Firm prices were not provided; therefore, the
Purchasing Department recommends the Board deem this bid non-responsive.
***Interstate
Electric Supply did not supply a cost for 6V batteries (NSSD’s Stock
#4500611770); therefore the Purchasing Department recommends the Board deem
this bid non-responsive.
The Purchasing Department
recommends awarding a two year contract from
It was moved by Trustee Swarthout
and seconded by Trustee Drew to award Bid No. 1287 for Electrical Supplies to Steiner
Electric Supply of Gurnee, IL for a two year contract from
On roll call, all Trustees
present voted “Aye”. Motion declared carried.
2. Bid No.
1288, Lab Supplies – MG Scientific, $47,856.61.
Bids were advertised in the paper
and mailed to six potential vendors. On
|
|
A. Daigger &
Co. |
VWR International |
MG Scientific |
Fisher Scientific |
|
Total Estimated Delivered Annual Cost 5/1/08–4/30/09 |
$19,726.87* |
$23,296.97** |
$23,342.69 |
$45,699.98 |
|
Total Estimated Delivered Annual Cost 5/1/09–4/30/10 |