JOURNAL OF THE (1347TH) MEETING OF THE BOARD OF TRUSTEES THE METROPOLITAN ST. LOUIS SEWER DISTRICT FEBRUARY 8, :00 P.M.

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1 JOURNAL OF THE (1347TH) MEETING OF THE BOARD OF TRUSTEES THE METROPOLITAN ST. LOUIS SEWER DISTRICT FEBRUARY 8, :00 P.M. The Trustees of the District met in the Board Room at 2000 Hampton Avenue on the above date. Present at meeting: Board of Trustees Staff Members T. W. Purcell, Chair W. R. Horton, Executive Director M. G. Reichert, Vice Chair C. M. Etwert, Asst. Executive Director C. D. Seward, excused R. E. Hayman, General Counsel P. P. Finn K. J. Tyminski, Secretary-Treasurer J. W. Siscel N. F. Stevens, Director of Finance M. C. Williams Also present were Tom Sullivan, 35 No. Central, St. Louis, MO; Tom Curran, St. Louis County; Dennis Lloyd, CCM; Tom Ratzki, Black & Veatch; Tom Heffernan, Sverdrup; Dan Donahue, Metcalf Eddy; James Mello, AT; James Koch, Kwame; Jeff Gratzer, O Brien & Gere; Jim Touslee, Black & Veatch; Steve Anderson, City of Hazelwood; Joseph Moss, M & E; Marjorie Melton, HDR; Wallace White, Sverdrup; Jim Hagerty, CDM; Allan Sweet, Marsh; Susan Robin, CCM; Wayne Lindsey, SVCV; Joyce Opinsky, A.G. Edwards; Frank Domeisen, Yanni-Bilkey; Jody Bass, RJN Group, Inc.; Bryce Cooper, Christner, Inc.; Robert Neath, CH2M Hill; Dave Sutton, URS; Dan Wilson, KDG; Larry Costello, Citizen; Emil Cook, CMT; Solomon Akindura, AFRAM; Eric Small, SBK-Brooks; Bob Januska, OBG; Elliott Davis, KTVI-TV; Tom Heyse, KTVI-TV; Ollie Dowell, KMOX Radio; Phil Sutin, St. Louis Post-Dispatch; Don Moschenross, Director of Administration; Ron Peasley, Internal Auditor; Bob Butchko, Director of Engineering; Roger Wieting, Director of Operations; Bernie Rains, Director of Environmental Compliance; Larry Carpenter, Director of Information Systems; Vicki Taylor, Director of Human Resources; Terry Briggs, Director of Public Affairs; Joel Hollocher, Director of Risk Management; Jeff Theerman, Assistant Director of Operations; Bob Puricelli, Manager, Graphics & GIS; Paula Eckrich, Attorney III; Bob Breig, Financial Analyst; Chris Pfeuffer, Plant Engineer; Jim McKay, Right-of-Way Agent; Dan Patterson, Assistant Engineer; Bill Hargrove, Dedication Inspector; Jeanette Brinegar, Permit Supervisor; Mary Jo Gonzales, Operations Analyst II; Helen Williams, Secretary to the Executive Director; and Sheri Nackley, Secretary to the Board of Trustees. Mr. Purcell opened the meeting and asked if there were any changes to the minutes of the previous meetings.

2 Upon a motion made by Mr. Williams, seconded by Mr. Siscel, the Journals of the January 11, 2001 (1345th) and January 18, 2001 (1346th Special) Board meetings were unanimously approved. He noted that the District had a Special Board meeting where there was approval of the members of the Rate Commission, authorization for the District to seek Request for Proposals for Program Management Services, and review of the Internal Audit process. He thanked the Trustees and leadership at MSD for accomplishing these tasks in a short time frame. He explained that, in the future, there will be much discussion and debate about the topics and issues facing the District. He emphasized that this disagreement is healthy for the organization to achieve compromise and move the it forward. He indicated that beginning next month there will be a special section in the District s employee newsletter that will consist of comments from the Board. Mr. Purcell called upon Mr. Frank Domeisen of the pension consulting firm of Yanni-Bilkey. Mr. Domeisen noted that this was the poorest year for stock market return since 1977, and the stock market, as a whole, was down approximately 9.1 percent for the year. This was largely due to the increase in interest rates, rising energy prices, and a general slowing of the economy. During this year, the best sectors for stocks were energy and health care. The District s portfolio was positive for the year and returned 1.2 percent versus a target index of a negative 1.5 percent, or the District out performed its benchmark by 2.7 percent. Mr. Domeisen discussed the detailed performance of the various investment managers, a copy of which is available upon request, and summarized the District will need to move money from Firmco to the VanGuard Windsor II Fund, transfer the assets of the Small Cap Growth Manager from Fiduciary Trust International to Times Square Asset Management. This latter change follows the firm s management that left Fiduciary Trust and moved to Times Square. Lastly, he noted that the District s asset allocation was essentially on target but may require some minor rebalancing. Mr. Purcell called upon Mr. Williams for report of Board Committees. Mr. Williams indicated that the MBE/WBE Committee met earlier today and announced that the Diverse/Universe Award Celebration will be held on Monday, February 26, 2001, 11:30 a.m. at the Radisson Hotel in Clayton. The guest speaker will be The Honorable Christopher Kit Bond. He noted that the employees are properly utilizing the educational assistance program to increase their skill levels. There were no new hires and one retirement during the month. 2

3 He noted that Ms. Rivers is participating in the Executive Leadership Institute and that the next scheduled meeting of the Committee is March 8, 2001 at 9:00 a.m. Mr. Siscel reported that the Strategic Business Plan Committee met on January 30 where O Donnell Communications conducted the session that consisted of a general overview of the work done by the Committee to date and a broad-based opinion gathering process. There was a discussion between Mr. Siscel and Mr. Purcell regarding the different types of focus groups that would be conducted. Mr. Siscel indicated that focus groups would be conducted with the Rate Commission, various municipal officials, the African-American opinion leaders, former MSD Trustees, customers who have had problems with MSD, and representatives from city neighborhood associations and county subdivisions. Ms. Reichert indicated that the Finance Committee had not met since the Special Board meeting on January 18, where at that meeting, the Rate Commission was selected. Mr. Purcell reported on the Intergovernmental Relations Committee meeting held earlier today and noted the District will be meeting with key state legislators and th leaders including the Governor and Lieutenant Governor on February 12th and 13. Mr. Horton, in the report of the Executive Director, indicated that the District, in conjunction with Burns & McDonnell, received an Engineering Excellence Award for 2001 for its Sanitary Sewer Overflow study from the Consulting Engineers Council of Missouri. The District will be providing informative inserts in its March bills that will update the community on the District-sponsored events for Earthday which kicks off on Thursday, April 19 with additional District-sponsored events on Saturday, April 21 and Sunday, April 22. This year s theme is Our Water Our Rivers. The inserts will also contain a warning from the Emergency Management Agency reminding our customers of the severe weather warning signals in the metropolitan area. There will be an ad in the newspaper, in compliance with our new Plan Amendments, that solicits names of individuals who are interested in serving as Trustees for the District. Two Board members terms will be expiring on March 14, 2001 and March 15,

4 Mr. Horton pointed out that on this agenda that there will be five contracts totaling $3.8 million covering improvements to the existing infrastructure. Three contracts totaling $900,000 under new business and five professional services contracts $3.4 million. Mr. Horton concluded his report by calling upon Mr. Briggs to introduce the Employees of the Month, members of the Employees Activities Committee. Mr. Horton acknowledged that this group works diligently to promote camaraderie among the employees of the District and sponsors such events as the MSD Picnic, Breakfast With Santa, and the MSD Christmas Party. Mr. Briggs introduced the members; Jim McKay, Dan Patterson, Mary Jo Gonzales, Jeanette Brinegar, Bill Hargrove, and Sheri Nackley. Mr. McKay, on behalf of the Committee, thanked the Board and invited them to join the District at its next Household Hazardous Waste Collection in the Spring. Mr. Purcell thanked the Committee for their efforts. Mr. Purcell called upon Mr. Horton to update the Board on the recent trip to the AMSA meeting. Mr. Horton responded that the Association of Metropolitan Sewerage Agencies (AMSA) held their meeting, and we were able to participate in a variety of sessions to network with similar agencies, the federal and local government, regarding better ways to manage our infrastructure. The District is still working with the infrastructure caucus who will come out with the Water Infrastructure Network report on February 13 that will deal with the needs and suggests methods for federal funding for the infrastructure issue. Mr. Horton noted that the attendees discussed the impact of a number of regulatory changes that are being proposed. Mr. Purcell requested a quarterly update of the amount of money the District spends for overtime for its employees. Mr. Horton responded that the District has significantly decreased the amount of overtime it s used and would be happy to provide this information on a quarterly basis. Mr. Williams asked Mr. Horton to brief the Board on how he is able to get more accomplished with less employees. Mr. Horton responded that as of September 1999 the District had 990 authorized positions of which 955 were filled. Currently, the District has 954 authorized positions of which only 890 are filled. The District has been able to do more with less and has also cut back on overtime due to the fact that we have found creative ways to address the community s needs. He thanked the employees for their help. 4

5 Mr. Sullivan addressed the Board and expressed his concern about the District spending $10 million to renovate the Hampton Avenue complex. He also questioned how the District was able to complete the RFP process for the feasibility study in such a short time frame and questioned if Christner, Inc. was directed as to who their subcontractor would be. Mr. Purcell responded that over the last 41 years, which is the time frame that the District has owned the building at 2000 Hampton, approximately $3.4 million has been spent on this structure including the purchase price. He asked Mr. Horton to give a breakdown of these costs. Mr. Horton responded that the original purchase price of the building was $587, In the last 41 years the District spent $1,350,000 for additional space at this building. That includes additions in 1969, 1976, and In addition to that amount, the District spent $1,441,000 for improvements in major maintenance work over a 41-year period. Mr. Purcell indicated that this is a very small amount of money to have spent on the District s physical facilities over that period of time and he asked Mr. Sullivan to look at other agencies and governments in the area to see how they are spending to provide adequate space for their employees. Mr. Sullivan questioned the following agenda items: Item #33, proposed Ord. No ; Item #25, proposed Ord. No ; Item #30, proposed Ord. No ; Item #31, proposed Ord. No ; Item #34, proposed Ord. No ; and Item #35, proposed Ord. No He also suggested that the Internal Audit department consider looking at the overtime issue and the expenditures on the South County plant as possible audit areas and also suggested that the District show accountability for the expenditures for the new Lower Meramec WWTP in a manner similar that was done to the Proposition A projects. ADOPTION OF THE CONSENT AGENDA Ordinances ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) APPROPRIATING $2,650, FROM THE OPERATION, MAINTENANCE AND CONSTRUCTION IMPROVEMENT FUND OF COLDWATER CREEK TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF A STORM CHANNEL AND SANITARY SEWERS IN BRECKENRIDGE TO BALTIMORE STORM CHANNEL (96044), IN THE CITY OF BRECKENRIDGE HILLS, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH R. V. WAGNER, INC. FOR THE CONSTRUCTION OF THE AFORESAID PROJECT. 5

6 ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH J. W. BOMMARITO CONSTRUCTION CO., INC. FOR THE CONSTRUCTION OF SANITARY SEWERS IN LACKLAND ROAD SANITARY REPLACEMENT (INFRASTRUCTURE REPAIR) ( ), IN THE CITY OF CHARLACK, MISSOURI. (FUNDED FROM THE OPERATIONS DEPARTMENT BUDGET - $120,000.00) ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) APPROPRIATING $530, FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF THE LEMAY SERVICE AREA ORS LEMAY NORTH (L-10D) SEWER SEPARATION PHASE I (96056D), IN THE CITY OF ST. LOUIS, CITY OF LAKESHIRE AND UNINCORPORATED ST. LOUIS COUNTY, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH BATES UTILITY COMPANY, INC. FOR THE AFORESAID CONSTRUCTION. ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) APPROPRIATING $500, FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF SANITARY SEWERS IN TESSON FERRY-GREEN PARK TO JAN SANITARY RELIEF (99053) IN THE CITY OF GREEN PARK AND UNINCORPORATED ST. LOUIS COUNTY, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH SOUTHERN DITCHING & EXCAVATING COMPANY FOR THE CONSTRUCTION OF THE AFORESAID SANITARY SEWERS. ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) MAKING A SUPPLEMENTAL APPROPRIATION OF $225, FROM THE OPERATION, MAINTENANCE AND CONSTRUCTION IMPROVEMENT FUND OF DEER CREEK TO BE USED FOR ADDITIONAL PROJECT COSTS FOR THE CONSTRUCTION OF STORM SEWERS IN KORTWRIGHT-WARSON PLACE STORM SEWER PHASE I (97009A), IN THE CITY OF LADUE, MISSOURI. ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO SELL AND CONVEY TO THE 370/MISSOURI BOTTOM ROAD/TAUSSIG ROAD TRANSPORTATION DEVELOPMENT DISTRICT, CERTAIN REAL PROPERTY OF THE DISTRICT LOCATED IN ST. LOUIS COUNTY, MISSOURI AND PRESCRIBING THE TERMS OF SAID TRANSACTION. 6

7 ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) TO PROVIDE FOR THE SELECTION OF APPROVED DEPOSITARY BANKS AND APPROVED SECURITIES DEALERS, THE MAKING AND TERMS OF TIME AND DEMAND DEPOSITS AND AUTHORIZED INVESTMENTS, THE FORM OF SECURITY FOR SAFEKEEPING OF DISTRICT FUNDS, THE APPROVAL OF AUTHORIZED DISTRICT REPRESENTATIVES FOR PURPOSES OF SIGNING OF CHECKS AND MAKING OF TRANSFERS OF DISTRICT FUNDS, THE FURNISHING OF SURETY BONDS FOR AUTHORIZED DISTRICT REPRESENTATIVES, AND REPORTS OF THE SECRETARY- TREASURER TO THE BOARD OF TRUSTEES OF THE DISTRICT WITH RESPECT TO THE DEPOSIT AND INVESTMENT OF DISTRICT FUNDS, AND REPEALING PRIOR ORDINANCES AND RESOLUTIONS INCONSISTENT HEREWITH. Plan Approval Mattese Creek Sanitary Relief Phase IV (90024D) This project, located in unincorporated St. Louis County, is to alleviate basement back-ups and overloaded sanitary sewers. This project is in the Fiscal Year 2001 Budget and the estimated construction cost is $1,839,000. Edgefield-Monarch Channel Improvement (MCBJ-260) (99109) This project, located in unincorporated St. Louis County, is to alleviate channel erosion affecting structures. This project is in the Fiscal Year 2001 Budget and the estimated construction cost is $313,000. Resolutions Adoption of Resolution No expressing the Board of Trustees' appreciation to Thomas Hoeft for his 22 years of exemplary service to The Metropolitan St. Louis Sewer District from April 17, 1978 to his retirement effective January 1, Adoption of Resolution No expressing the Board of Trustees appreciation to Marlin Washington for her 25 years of exemplary service to The Metropolitan St. Louis Sewer District from November 17, 1975 to her retirement effective February 1, Adoption of Resolution No expressing the Board of Trustees appreciation to Earl J. Gardner for his 15 years of exemplary service to The Metropolitan St. Louis Sewer District from February 3, 1986 to his retirement effective February 1, Adoption of Resolution No expressing the Board of Trustees appreciation to Elizah McGee for his 34 years of exemplary service to The Metropolitan St. Louis Sewer District from September 19, 1966 to his retirement effective February 1,

8 Adoption of Resolution No expressing the Board of Trustees appreciation to Edwin Burris, Jr. for his 27 years of exemplary service to The Metropolitan St. Louis Sewer District from August 27, 1973 to his retirement effective March 1, Adoption of Resolution No expressing the Board of Trustees appreciation to Earl Hill for his 32 years of exemplary service to The Metropolitan St. Louis Sewer District from April 14, 1969 to his retirement effective February 1, Ms. Reichert questioned if the changes requested by the Finance Committee have been made to the investment policy to ensure that it comports with the state law. Mr. Dennis Lloyd, of Columbia Capital Management, assured the Board that the current investment policy reflects all the changes. Motion made by Mr. Siscel, seconded by Mr. Williams, that the Consent Agenda be adopted. The Chairman declared the Consent Agenda adopted and proposed Ordinance Nos , 95-01, 96-01, 97-01, 98-01, , and ; were assigned Ordinance Nos , 10903, 10904, 10905, 10906, 10907, and UNFINISHED BUSINESS Ordinances AMENDMENT AND ADOPTION OF PROPOSED ORD. NO (ORDINANCE NO ) REPEALING ORDINANCE NO , AS ADOPTED JANUARY 6, 2000, AND ENACTING A NEW ORDINANCE IN LIEU THEREOF, PROVIDING THAT ANY FUNDS OWED BY THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ANY PERSON OR ENTITY FOR ANY REASON, INCLUDING, BUT NOT LIMITED TO, A BLOCKED MAIN SEWER LINE OR AN OVERCHARGED MAIN SEWER LINE MAY BE USED BY THE DISTRICT AS A SET-OFF AGAINST ANY FUNDS OWED BY SAID PERSON OR ENTITY TO THE DISTRICT FOR UNPAID SEWER SERVICE CHARGES DELINQUENT MORE THAN SIX (6) MONTHS. Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be amended. 8

9 Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be adopted. The Chairman declared proposed Ordinance No adopted and it was assigned Ordinance No NEW BUSINESS Ordinances INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $275, FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF SANITARY SEWERS IN CC-02 FERNVIEW AND OLIVE SANITARY RELIEF (90009), IN THE CITY OF CREVE COEUR, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH KARSTEN EQUIPMENT CO. FOR THE CONSTRUCTION OF THE AFORESAID SANITARY SEWERS. Proposed Ord. No was presented and read. This work consists of the construction of approximately 1,755 feet of pipe sewers varying in size from 8 to 24 in diameter and appurtenances. The purpose of this project is to alleviate basement backups and overloaded sanitary sewers. Residents along Fernway Lane have reported water backups during heavy rainfall. This project is scheduled to be completed in 210 days. Motion made by Mr. Siscel, seconded by Ms. Finn, that proposed Ordinance No be introduced. 9

10 INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $250, FROM THE OPERATION, MAINTENANCE AND CONSTRUCTION IMPROVEMENT FUND OF DEER CREEK TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF STORM SEWERS IN EAST PACIFIC STORM SEWER PHASE II (99083), IN THE CITY OF WEBSTER GROVES, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH KARSTEN EQUIPMENT COMPANY FOR THE CONSTRUCTION OF THE AFORESAID STORM SEWERS. Proposed Ord. No was presented and read. This work consists of the construction of approximately 807 feet of 36 diameter reinforced concrete storm sewers. This project will alleviate street and yard flooding due to an overcharged sinkhole. This project is scheduled to be completed in 120 days. Ms. Finn questioned if this project would help control flooding. Mr. Butchko indicated that it would. Ms. Reichert questioned how this project would impact the Deer Creek concern of Mr. Bond. Mr. Butchko indicated this project is downstream from Mr. Bond s residence. Motion made by Mr. Siscel, seconded by Ms. Finn, that proposed Ordinance No be introduced. INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $375, FROM THE IMPROVEMENT FUND TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF COMBINED SEWERS IN CLARA AND KINGSBURY RELIEF SEWER (99080), IN THE CITY OF ST. LOUIS, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH J. W. BOMMARITO CONSTRUCTION COMPANY, INC. FOR THE CONSTRUCTION OF THE AFORESAID COMBINED SEWERS. Proposed Ord. No was presented and read. This work consists of the construction of approximately 884 feet of pipe sewers, varying in size from 12 to 36 in diameter. The purpose of this project is to eliminate street flooding at the intersection of Clara Avenue and Kingsbury Place. This relief sewer will serve as the outfall sewer for other flooding problems in the watershed. This project is scheduled to be completed in 150 days. 10

11 Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be introduced. INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $85, FROM THE OPERATION, MAINTENANCE AND CONSTRUCTION IMPROVEMENT FUND OF CLAYTON CENTRAL TO PAY THE DISTRICT S SHARE TO ST. LOUIS COUNTY FOR THE COSTS OF CONSTRUCTION, RELOCATION AND UPGRADE OF A SANITARY SEWER IN THE CITY OF CLAYTON, MISSOURI IN ORDER TO CORRECT DEFICIENCIES WITHIN THE EXISTING SANITARY SEWER SYSTEM. Proposed Ord. No was presented and read. In June 1997, the Board of Trustees appropriated $1,000,000 for the construction of sanitary relief sewers at various locations in the City of Clayton. One of the locations is at the site of a proposed parking garage to be constructed by St. Louis County. At the request of St. Louis County, the District deleted the construction of about 400 feet of 8 sanitary relief sewer from the construction project in order to avoid a potential conflict between the new sewer construction and the County s parking garage. Based on the unit prices of the lowest bidder, the construction cost of this deleted work was approximately $85,000. As part of the design of the parking garage, St. Louis County will also design the sanitary sewer with MSD paying a maximum of $85,000 for its construction. Motion made by Mr. Siscel, seconded by Ms. Finn, that proposed Ordinance No be introduced. INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $50, FROM THE OPERATION, MAINTENANCE AND CONSTRUCTION IMPROVEMENT FUND OF GRAVOIS CREEK FOR ENGINEERING SERVICES FOR THE FINAL DESIGN OF REAVIS BARRACKS AND APPLE BUD LANE STORM PROJECT (GCMB-320) (99067); AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY- TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT E-978 WITH TDP/ST. LOUIS, INC. FOR THE AFORESAID ENGINEERING SERVICES. Proposed Ord. No was presented and read. This project consists of the design and preparation of construction documents for approximately 320 feet of creek bank protection and a flood study to determine flood elevations. The preliminary 11

12 construction cost for the bank protection is $180,000. Future work may be required to either flood proof or purchase homes subject to flooding, depending on the results of the flood study. District staff prepared the preliminary study for this project. Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be introduced. INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $400, FROM THE IMPROVEMENT FUND FOR ENGINEERING SERVICES FOR THE FINAL DESIGN OF ALFRED-EICHELBERGER COMBINED SEWER RELIEF PHASE I (99079A); AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY- TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO AMENDMENT NO. 1 OF CONTRACT E-924 WITH ARLOU, INC./HARZA ENGINEERING COMPANY FOR THE AFORESAID ENGINEERING SERVICES. Proposed Ord. No was presented and read. This project consists of the design and preparation of construction documents for 3 sections consisting of 1,140 feet of 30 to 40 diameter combined sewer in Alfred Avenue, 975 feet of 24 diameter combination sewer in Morganford Road, 400 feet of 36 diameter combination sewer in Eichelberger and cast in place lining of 3,500 feet of the primary trunk sewer in sites from 52 to 84 in diameter. The preliminary construction cost for this project is $4,500,000. Arlou, Inc./Harza Engineering Company prepared the preliminary design for this project. contract. Ms. Reichert asked Mr. Butchko to explain why we were amending this Mssrs. Butchko and Horton responded that it is the District s policy to assign design contracts on a phased-basis. This contract represents the final design of this project. Mr. Purcell asked who the entity was handling this project. Mr. Butchko responded that it was a mentoring arrangement between Arlou, a local firm, and Harza, a Chicago-based firm, who is serving as the mentor. Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be introduced. 12

13 INTRODUCTION OF PROPOSED ORD. NO DECLARING THE NECESSITY FOR THE ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE METROPOLITAN ST. LOUIS SEWER DISTRICT FOR THE PURPOSE OF PERMITTING CONSTRUCTION, RECONSTRUCTION, MAINTENANCE OR REPAIR OF COMBINED SEWERS AND APPURTENANCES TO SERVE THE NEEDS OF RESIDENTS OF THE AREA IN THE PROJECT KNOWN AS HARLEM-BADEN RELIEF (ASHLAND-ABNER), DETENTION BASINS, MSD PROJECT #99144B, AND AUTHORIZING THE ACQUISITION OF SUCH REAL PROPERTY BY PURCHASE OR BY THE INSTITUTION OF CONDEMNATION PROCEEDINGS. Proposed Ord. No was presented and read. The District has acquired 47 of 49 properties needed to complete this project. The remaining two properties have presented problems due to out-of-state residents, potential litigation and unrealistic sale price by owner. Mr. Siscel asked how much was to be spent for these properties. Ms. Eckrich indicated that the District will most likely be seeking condemnation on both of these properties. In one case, it will be a necessity to commence condemnation proceedings to assure that the District obtain clean title. As such, the amount that will be spent to obtain these properties is not known. There was a discussion between Ms. Reichert and Ms. Eckrich regarding the fact that these properties could be obtained through either negotiation or condemnation. The current offer price and the appraisal prices were noted and it was felt that for one property the District could possibly obtain it through negotiation. Motion made by Mr. Williams, seconded by Mr. Siscel, that proposed Ordinance No be introduced. INTRODUCTION AND ADOPTION OF PROPOSED ORD. NO APPROPRIATING $90, FROM THE REAL PROPERTY IMPROVEMENT AND ALTERATIONS FUND FOR ARCHITECTURAL SERVICES FOR THE CONCEPTUAL DESIGN OF MSD CAMPUS ADDITION, RENOVATION & EXPANSION ( ); AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT E-979 WITH CHRISTNER, INC. FOR THE AFORESAID ARCHITECTURAL SERVICES. 13

14 Proposed Ord. No was presented and read. This project is for Architectural Evaluation Services in conjunction with the proposed addition and renovation of the District s Headquarters Campus at 2000 Hampton Avenue. The services provided will be for the preparation of a detailed report addressing all proposed conceptual plans and construction. The comprehensive report will make recommendations and provide verification of its components and cost estimates so that a professional assessment of the plan and concepts and costs can be obtained. Seven firms were shortlisted; five firms submitted responses to the RFP. Mr. Siscel asked staff to better explain the process of selecting Christner, Inc. as the architectural firm for this project. Mssrs. Horton and Butchko responded that this is a professional services agreement and, as such, these types of agreements are not competitively bid. Rather, firms are asked to submit qualifications. Their qualifications, along with any unique ideas, are reviewed by an assessment committee. The committee will then select the best qualified firms. In a separate envelope, fee proposals are accepted, but only opened for the selected firm. Proposals. Mr. Purcell asked who were the seven firms that received Request for Mr. Butchko responded that the firms were David Mason & Associates, Arcturis, Wm. B. Ittner, Inc., Kennedy Associates Incorporated, ACI/Boland, Incorporated, Mackey Mitchell Associates, and Christner, Incorporated. He indicated that the fee proposals for Christner, Inc. was $85,000. There was a discussion between Ms. Reichert, Mr. Horton, and Mr. Hayman as to whether an architectural feasibility study falls within the classification of professional services. It was noted that a number of ordinances cover this issue and that this type of contract would definitely fall under the professional services clause. In particular, Mr. Hayman cited Section of the Missouri State Law. There was a discussion between Ms. Reichert, Mr. Purcell, and Mr. Butchko regarding what type of architectural services are to be conducted by Christner, Inc. where it was determined that Christner, Inc. would assess the feasibility and the total cost of the renovation of the Hampton complex. Mr. Purcell questioned how much the design cost of a new facility would be. Mr. Butchko replied that the design cost would be between four and five percent of the total cost of the project. Ms. Reichert requested that all prior studies be made available to the architects to void any redundancy of work. Mr. Butchko explained that the renovation of this complex is more feasible today because we have better parking available in this complex than we had in the early 90's. Because of this, the renovation of the existing complex may be more cost justified. 14

15 Mssrs. Butchko and Horton discussed some of the more severe problems facing this building; primarily the lack of a sprinkler system, the need to update the electrical system, and the need to update the telephone system. Mr. Purcell expressed concern about the District conducting public operations in an unsprinkled building. Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be introduced. Motion made, seconded and unanimously adopted, to suspend the rules to allow for adoption of proposed Ordinance No Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be adopted. The Chairman declared proposed Ordinance No adopted, and it was assigned Ordinance No INTRODUCTION OF PROPOSED ORD. NO APPROPRIATING $114, FROM THE GENERAL FUND OF THE DISTRICT FOR THE IMPLEMENTATION OF AND SERVICE FOR A RISK MANAGEMENT INFORMATION SYSTEM (RMIS) FOR THE DISTRICT; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY- TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH MARSH U.S.A. FOR THE IMPLEMENTATION OF AND SERVICE FOR SAID RISK MANAGEMENT INFORMATION SYSTEM. Proposed Ord. No was presented and read. This ordinance will appropriate funds and authorizes the District to enter into a contract with Marsh USA for a new Risk Management Information System. The new comprehensive integrated state-ofthe-art system will replace the existing stand-alone Claims, Litigation, Safety and Workers Compensation systems, and be interfaced with the new Finance and Human Resources systems. The system provides for centralization of risk data, insurance policy management, check issuance, etc. There were three respondents to the RFP, and the Marsh system was determined to be the most responsive and cost effective solution by a software selection committee made up of MSD staff. 15

16 Ms. Reichert asked Mr. Tyminski to enumerate on why the District is purchasing a Risk Management Information System. Mr. Tyminski indicated that this ordinance related to the purchase of computer software that will eventually serve as a claims tracking system for the District. Currently, the District is either on a manual or patchwork computer system and the Risk Management System will integrate these items and allow the District to better track the costs associated with the various types of claims. He emphasized that this system is the same that is used by St. Louis County. Motion made by Mr. Siscel, seconded by Mr. Williams, that proposed Ordinance No be introduced. INTRODUCTION OF PROPOSED ORD. NO AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH SANDRA STEEN & ASSOCIATES, INC. WHEREBY SANDRA STEEN & ASSOCIATES, INC. WILL DEVELOP AND IMPLEMENT THE DIVERSITY IN THE WORKPLACE PHASE II TRAINING PROGRAM FOR ALL DISTRICT EMPLOYEES. Proposed Ord. No was presented and read. The District entered into a contract with Sandra Steen and Associates, Incorporated last year for the first phase of Diversity Training. This Phase II contract would allow us to hold a series of classes that would build upon the foundation set last year. Phase II training will focus on expanding the knowledge and understanding of diverse cultural groups and the development of strategies to strengthen positive communication in the workplace. Mr. Siscel asked that he be given a written report regarding some of the issues that were brought up by Mr. Sullivan and indicated that he is in favor of introduction at this point in time but would like to address these concerns. In particular, he would like to address the question, Are there local firms that can do this as well? Mr. Horton replied that the District utilized a professional services approach to this contract with the intent of providing the best possible service to the District at the best possible negotiated price. Ms. Reichert asked staff to address Mr. Sullivan s allegation that Sandra Steen and Associates was not the initial firm selected. Ms. Taylor responded that this information is absolutely incorrect. In fact, the employees rated Sandra Steen s firm quite high in their first diversity training and as such they were highly recommended to do the next phase. 16

17 Motion made by Mr. Williams, seconded by Ms. Finn, that proposed Ordinance No be introduced. Motion passed - 4 ayes, 1 nays. Poll taken: T. W. Purcell aye M. G. Reichert nay ADOPTION OF RESOLUTION NO. 2388; WHEREAS, THE EXECUTIVE DIRECTOR OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT (DISTRICT) HAS RECOMMENDED TO THE BOARD OF TRUSTEES THAT A CERTAIN PARCEL OF REAL PROPERTY DESCRIBED AS A TRACT OF LAND CONSISTING OF APPROXIMATELY ACRES LOCATED AT 1641 VASSIER, IN THE CITY OF WELLSTON, MISSOURI (ST. LOUIS COUNTY LOCATOR NO. 16H AND 16H510694, MSD SITE NO. 139), IS NO LONGER NECESSARY OR USEFUL IN THE DISTRICT S OPERATIONS AND THEREFORE, SHOULD BE DECLARED AS SURPLUS PROPERTY. Resolution No was presented and read. The property and improvements known as 1641 Vassier in the City of Wellston, Missouri, were purchased by the District in early 1999 and the single family residence was removed. The property was purchased to correct a sewer problem. The house was located over an old, very shallow, dual twenty-four inch sewer. The sewer had broken and flooded the basement of the house and the sewer could not be readily repaired because of its location. The decision to purchase the property was made in late 1998 because it was more cost effective to purchase the property, remove the structure and fix the existing sewer than to reroute a new sewer around the house. The purchase price for the property was approximately $30,000. The District now owns and maintains the property but the Operations Department has indicated that retaining ownership of this property is not necessary for future operations of the District and has recommended disposing of the property while retaining a blanket easement. An adjacent property owner is interested in purchasing the property with the knowledge that MSD would retain a blanket easement to allow access to the sewers and that the lot is unbuildable. In order to dispose of any real property it must first be declared surplus and no longer necessary or useful for District operations by the Board of Trustees in compliance with the provisions of Resolution No Resolution No declares the property known as 1641 Vassier as surplus. It is anticipated that subsequent disposal of this property would be done through open and competitive bid. Motion made by Mr. Siscel, seconded by Mr. Williams, that Resolution No be adopted. 17

18 ADOPTION OF RESOLUTION NO. 2389; WHEREAS, THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT ADOPTED ORDINANCE NO ON FEBRUARY 8, 2001, WHICH SPECIFIES A PUBLIC FUNDS INVESTMENT POLICY FOR THE DISTRICT, A COPY OF WHICH IS ATTACHED HERETO AS EXHIBIT A. Resolution No was presented and read. Mr. Tyminski indicated that this is a companion resolution to the investment policy. adopted. Motion made by Mr. Siscel, seconded by Mr. Williams, that Resolution No be INTRODUCTION AND ADOPTION OF PROPOSED ORD. NO. REPEALING ORDINANCE NO. 7420, AS ADOPTED APRIL 13, 1988 AND ENACTING A NEW ORDINANCE IN LIEU THEREOF, PROVIDING GENERALLY FOR THE LEVYING OF SPECIAL BENEFIT ASSESSMENTS AGAINST THE REAL PROPERTY BENEFITED BY THE CONSTRUCTION OF SEWER IMPROVEMENTS TO BE PAID FOR BY SAID SPECIAL BENEFIT ASSESSMENTS AND THE ISSUANCE OF SPECIAL TAX BILLS, ESTABLISHING THE TERMS, CONDITIONS AND PROVISIONS APPLICABLE THERETO, AND AUTHORIZING AND DIRECTING THE ADOPTION OF A STANDARD SPECIAL TAX BILL FORM. Mr. Tyminski noted that the purpose of this ordinance will be to update the tax bill process to allow for the subdistricts to take advantage of lower rate financing offered through the State Revolving Loan Fund. This item will need to be expedited to assist the homeowners and the Museum of Transportation which is seeking to expand some of its activities. Mr. Purcell opened discussion on the Program Management Request for Proposal. Ms. Reichert asked what Attachment One and Two were. Mr. Butchko indicated that Attachment One is the data base of the project and the dollar value of the work to be performed and Attachment Two relates to financing issues. 18

19 Ms. Reichert indicated that the draft of the RFP does not specify the time frame for the service to be provided. Mr. Horton responded that the RFP is for a 15-year period. Ms. Reichert requested that Mr. Hayman review legal aspects of going out with a 15-year RFP. Mssrs. Purcell and Siscel indicated that the document needs to provide for flexibility to adapt to changes over the next 15 years. Mr. Horton indicated that the document will have the appropriate contract language to allow the District flexibility to terminate or change the agreement. Ms. Reichert questioned if the qualifications for the firm would be included as part of the proposal process. Mr. Horton indicated that these would be obtained. There was a discussion between Mr. Horton and Trustees Reichert and Finn regarding the need to obtain the total cost for this program as part of the proposal process. The Trustees expressed concern that the total dollar amount of this program is quite large and the estimated cost for the program manager alternative be disclosed as part of the process. Ms. Reichert noted that for the owner-controlled insurance program, the owner needs to be defined. She also questioned why the program management team would be involved in the owner-controlled insurance program. Mr. Tyminski indicated that certain technical support and specifications would be needed from the program manager. Ms. Reichert asked why an owners representative would need to be included. Mssrs. Horton and Hayman indicated that the Capital Improvement Program would place a great burden on the existing support services of the District and the RFP process was seeking a method to augment that area. Ms. Reichert emphasized the need to make a single party accountable in a joint venture arrangement, in that, if problem should arise, the District needs to hold one party accountable. Mr. Purcell noted that the accountable person for this RFP is the Executive Director and needs to be provided the flexibility to implement this program in the manner he sees fit. He concluded this discussion by directing Mr. Horton and staff to issue the RFP and notify the Board of any changes that differ from the draft they had been given. 19

20 Mr. Purcell summarized the meeting by noting that the Board approved Resolutions recognizing the years of service for District employees. We recognized the employees of the month which, in this case, were the District s Employees Activities Committee who demonstrated a high level of commitment to both the District and the community. We had discussion on how we would organize ourselves from a physical perspective, and lastly, we discussed program management. 7:40 P.M. Upon motion made by Mr. Purcell, seconded by Ms. Finn, the meeting adjourned at Secretary-Treasurer 20