HomeMy Public PortalAbout1504th Board Journal 8-11-2011
JOURNAL OF THE (1504th) MEETING OF THE
BOARD OF TRUSTEES
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
August 11, 2011 – 5:00 P.M.
The Trustees of the District met in Room 109 at 2350 Market on the above date.
Present at meeting:
Board of Trustees Staff Members
R. T. Berry, Chair J. L. Theerman, Executive Director
J. H. Buford, Vice Chair S. E. Myers, General Counsel
J. H. Goffstein K. J. Tyminski, Secretary-Treasurer
G.T. Feldhaus J. M. Zimmerman, Director of Finance
E. G. Ross B. L. Hoelscher, Director of Engineering
D. A. Visintainer J. C. Sprague, Director of Operations
Also present were Tom Sullivan, 35 N. Central; Ed Sweet, Parsons; Tim
Tappendorf, CMT; Ronny Griffin Local 110 Laborers; Tom Ratzki, Black & Veatch; William Ray,
St. Louis County; Stephen Gregali, City of St. Louis; Dan Greco, CCMI; Ron Krusie, Burns, &
McDonnell; Mark Eshelman, M3 Engineering; Will Krussel, PB; Rick Olson, Woolpert; Walle
Amusa, ADE; David Cavender, Horner & Shifrin; Bently Green, Black & Veatch; Mark Koolitz,
Woolpert; Aaron Griesheimer, SITE; Sarah Turner, Gonzalez Companies; Sunil Thakkar, Jason
Technology; Dave Yates, CH2M Hill; Mike Greco, CCMI; Ron Steinkamp, BSW; Rob Kuenzel,
RJN; Lisa Douglas, RJN; Todd Loretta, MSD; Marie Collins, Asst. Director of Engineering; Barb
Mohn, Director of Information Systems; Vicki Taylor-Edwards, Director of Human Resources;
Mike Grace, Risk Management; Lance LeComb, Manager of Public Information; Debbie
Johnson, Public Information Representative; and Pam Bell, Secretary to the Executive Director.
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Mr. Berry opened the meeting pursuant to notice and call.
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Upon motion made by Mr. Ross, seconded by Mr. Visintainer, the Journal of the
July 14, 2011 meeting was approved by unanimous voice vote. Motion by Mr. Visintainer,
seconded by Mr. Ross to for the amended Journal of the June 29, 2011 meeting was approved
by unanimous vote.
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The Chair had no comments.
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Mr. Buford reported that the Finance Committee met August 9, 2011. In
attendance were Trustees Buford, Visintainer, Ross and Berry.
The Committee approved the minutes from the June 9th meeting.
Ms. Edwards reported the District would be introducing an ordinance to begin a
compensation study as required by Charter and indicated it would encompass the A, B, & C
schedule employees. She indicated the process would take approximately six months to
complete. This is item #34 on tonight’s agenda.
Ms. Zimmerman reported the District’s 2011 fiscal year ended $6.2 million or 4
percent under budget. She indicated this surplus will be primarily used to fund $2 million in
accelerated sanitary infrastructure repair projects and provide $1.8 million to fund anticipated
water back up insurance claims related to the June rain events. This budget transfer resolution
is item #37 on tonight’s agenda.
Ms. Myers requested authorization to enter into an agreement with Greensfelder,
Hemker & Gale, P.C. and UMB Bank to escrow attorney fees and post-judgment interest
awarded in the District’s stormwater rate litigation. This is item number #36 on tonight’s agenda
requiring introduction and adoption of this proposed ordinance.
Ms. Myers requested the District enter into a contract with Kohn, Shands, Elbert,
Gianoulakis & Giljum, LLP for specialized legal services needed until final resolution of the
District’s stormwater rate litigation. She also requested the District enter into a 1-year contract
with 2 one-year options, with the Shook, Hardy & Bacon law firm to provide legal services in the
area of environmental law specifically dealing with the District’s Consent Decree. After
discussion, the Committee recommended the contracts be moved to the full Board for
consideration. These are items #32 and #33 on tonight’s agenda.
Ms. Myers requested the Conflict of Interest Policy for the District’s Trustees,
Officers, and Employees be updated and provided the Committee with a revised version of the
current policy. The Committee unanimously agreed to move the revised policy to the full Board
for consideration. This is item # 35 on tonight’s agenda.
Ms. Zimmerman presented the June 2011 Adjustment Review Committee Report,
per Ordinance, and asked that the report be entered into the record. As part of this report, the
write off of $66,000 associated with MJK Distribution Inc was discussed. Ms. Zimmerman
indicated this company has gone out of business and collection litigation efforts revealed no
assets to attach for settlement of the delinquency. After discussion, the write off was approved
by the Committee and is being reported to the full Board as required by Ordinance.
Mr. Tyminski asked Ms. Jeanne Vanda of PFM, the District’s bond financing
advisor, to update the Committee on Disclosure & Market requirements related to the District’s
bond financing program and the anticipated issuance of bonds in the upcoming months. Ms.
Vanda reviewed the key events impacting the District’s bond disclosure including the status of
outstanding litigation and the Rate Commission process currently underway. Ms. Vanda
provided the Committee with a proposed timeline for disclosure and a list of current MSD
bondholders. After review and discussion of the timeline, Ms. Vanda discussed the current and
projected municipal bond rates.
Mr. Tyminski updated the Committee on the year to date pension performance
indicating total assets exceeded $207 Million. He highlighted that BDHS had performed well
through the 2nd quarter. He indicated the performance of Pyramis, the District’s market neutral
investment manager, is being closely watched. He noted the current market environment is one
conducive to a market neutral manager and that their performance is expected to improve. Mr.
Tyminski indicated the investment management firms of Pictet, GMO, and Stone Harbor were
evaluated and interviewed by Staff. Mr. Tyminski requested the firm of Pictet be approved to
manage the emerging market debt component of the District’s pension plan, which represents
5% of the Plan’s total assets. This new asset class will be funded through a rebalancing of the
Plan’s current asset allocation. After discussion, the Committee unanimously approved the
recommendation to engage Pictet. This is item #39 on tonight’s agenda.
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Mr. Ross reported that the Audit Committee met on 8:45 a.m. on Tuesday, August
9, 2011. In attendance were Trustees Buford, Berry, Ross and Visintainer. The Committee
approved the minutes from the prior meeting.
Mr. Loretta provided the attendees with a copy of the Review of Duplicate
Payments Report. He discussed the scope and objectives of the engagement and provided
details of the observations, recommendations, and management action plans resulting from the
review. In addition, he stated that District management agreed with the observations and
corrective actions recommended.
Mr. Loretta presented the Review of Non-Contract Purchase Orders Under $1,000.
He discussed the scope and objectives of the engagement and provided details of the
observations, recommendations, and management action plans resulting from the review. In
addition, he stated that District management agreed with the observations and corrective
actions recommended.
Mr. Mark Graves, from Schmersahl Trealor, discussed the progress of the
fieldwork currently being performed for the 2011 CAFR Audit. He mentioned that fieldwork
officially started July 26, and agreed-upon procedures had been performed earlier this year in
March. It was noted that fieldwork was progressing well and that communication between
Finance and Schmersahl has improved over the prior year, resulting in an improvement in the
efficiency of the fieldwork.
Mr. Graves provided the attendees with a copy of the auditor’s report and financial
statements for the Deferred Compensation Plan & Trust for the years ended December 31,
2009 and 2010. He stated that the report contained an unqualified opinion. He briefly reviewed
each section of the report, which included notes to the financial statements, and supplementary
information section. Mr. Graves also presented the auditor’s report and financial statements for
the Employees Pension Plan for the years ended December 31, 2009 and 2010. He stated that
the report contained an unqualified opinion. He briefly reviewed each section of the report,
which included the M D & A section, notes to the financial statements, required supplementary
information section, and statistical section. The Committee approved the auditor’s reports and
financial statements for the Deferred Compensation Plan & Trust (457B) and the Employee
Pension Plan.
The Committee entered into Closed Session to discuss confidential or privileged
communications between a public governmental body and its auditor under Section 610.021
(17) RSMO.
The meeting adjourned at 9:45 am.
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Mr. Visintainer reported that the Program Management Committee met on August
2, 2011 at 7:30 a.m. The meeting was attended by Trustees Visintainer, Berry, and Ross.
The minutes of the July 11, 2011 meeting were approved.
The agenda items to be introduced tonight were presented and discussed,
including a detailed discussion regarding the following items:
Item 27 – Stream Flow Gauge Operation – This ordinance will provide funding and
authorize staff to renew an agreement with USGS to continue providing these services. Staff
reviewed the services to be provided as described in the project write-up. Staff also provided
information on a previous analysis that indicated using USGS for this work was the most cost-
effective way to obtain this information to support the SSO, CSO, and Phase II Stormwater
Programs. Staff answered questions by the Committee and indicated that if MSD did not
participate in this program, USGS would drop the program.
Item 28 – Stream Flow Water Quality Sampling – This ordinance will provide
funding and authorize staff to enter in the second year of a three year agreement with
Geosyntec Consultants to provide this service. Staff reviewed the services to be provided as
described in the project write-up. Staff also reviewed the portion of water quality sampling that
is done by in-house staff. These services also support the SSO, CSO, and Phase II Stormwater
Programs. Staff responded to questions by the Committee. As requested by the Committee,
staff will complete a re-analysis of the current scope of this contract and determine if additional
sampling work can be cost-effectively brought in-house in future budget years. One member of
the public voiced his agreement with the benefits of having a proactive Water Quality Sampling
Program.
The meeting was adjourned at 8:06 a.m.
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The Executive Director reported that on August 4th, the USEPA and the
Department of Justice announced the lodging of a consent decree, which settles a four-year-old
lawsuit brought by the agency and the State of Missouri. This is the official filing with the U.S.
District Court of the proposed settlement approved by the Board in June. This lodging makes
the consent decree publically available in its entirety. At this point, the decree is not final and is
in a 30-day public notice and comment period until September 9th. Any one wishing to obtain a
copy of the decree can do so in a number of ways. The entire document is available by visiting
the Department of Justice website. A link to that site is included on the MSD website at
www.stlmsd.com. All comments during this public comment period regarding the consent
decree itself should be directed to DOJ as described in the Federal Register document that
accompanies the decree on their website. The actual enactment of the settlement will not occur
until after the public comment period as deemed appropriate by the court.
MSD’s Rate Commission will hold a series of five public hearings over the coming
two weeks on the District’s proposed wastewater rate increase. These public hearings will
include a presentation of the rate proposal and offer the public an opportunity to ask questions
and make comments. The hearings will be documented by a court reporter and transcripts of
the proceedings will be come a part of the rate commission record. The public should note that
comments on the rate proposal are not the same as the comments I mentioned previously on
the consent decree. The public is welcome to comment on both and there are important
linkages between the two. However, comments made at the Rate Commission Hearings will not
be part of the consent decree record unless the presenter follows the procedure on the
Department of Justice website. The date, locations and times for these hearings are available
at the District’s website at www.stlmsd.com.
Each year the National Association of Clean Water Agencies presents Peak
Performance Awards to those member facilities that achieve outstanding performance in
treatment plant operations. I am happy to report that all seven of the District’s plants have
received Peak Performance Awards for calendar 2010. Gold awards are presented to facilities
that have achieved perfect compliance. MSD has six facilities receiving Gold Awards: the
Lemay, Coldwater Creek, Grand Glaize, Missouri River, Fenton, and Lower Meramec Treatment
Plants. Silver Awards are presented to facilities that have five or fewer violations. A silver award
was presented to the District’s Bissell Point Treatment Plant, which had a single violation during
2010. Congratulations to the staffs of these facilities for achieving this high level of compliance.
Each month the District includes detail sheets in the board agenda that presents
specific details about proposed ordinances and resolutions. On the detail sheet is a section
entitled, “Previous Board Action Related to this Action”. The District created this section to
provide greater transparency on projects that have more than a single related board action.
This allows the public to understand the history of design and construction costs as well as the
contractors involved in the various aspects of the project. Over time, we have included prior
actions for contracts of a reoccurring nature that are unrelated to a specific project. In some
cases, we listed the history of reoccurring contracts for services dating back well over a decade.
For these sorts of actions, we will now show a contract and any renewals or contract
amendments in this section of the detail sheet but not previous contracts for this sort of services
in prior years. If historical information is desired, all of the districts ordinances and resolutions
are available via a search engine on our website.
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Mr. Sullivan addressed the Board and questioned how long the employee that was
reported in the Post-Dispatch for stealing was employed by MSD? The paper stated that he
was an employee from May 28 through July 28, 2011. Mr. Theerman responded that the former
employee in question was employed at MSD for approximately four years. Mr. Sullivan
commented that the selection process for the most recent Civil Service Commission vacancy
was handled in an open manner. He also questioned why the District did not do more sampling
and monitoring work in-house instead of contracting it out.
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CONSENT AGENDA
ADOPTION OF PROPOSED ORD. NO. 13279 (ORDINANCE NO. 13279) APPROPRIATING
$2,000,000.00 FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR COSTS
ASSOCIATED WITH THE ACQUISITION OF NECESSARY PROPERTY RIGHTS FROM
EASEMENT ACQUISITION FOR COMBINED/SANITARY PROJECTS (FY2012) (10585)
THROUGHOUT THE ENTIRE DISTRICT.
ADOPTION OF PROPOSED ORD. NO. 13280 (ORDINANCE NO. 13280) APPROPRIATING
$290,000.00 FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT
COSTS FOR PUMP STATION IMPROVEMENTS AT ELTON PUMP STATION (P-307)
ELIMINATION (10591) IN UNINCORPORATED ST. LOUIS COUNTY AND 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.H. BERRA CONSTRUCTION CO., INC. FOR THE
AFORESAID CONSTRUCTION.
ADOPTION OF PROPOSED ORD. NO. 13281 (ORDINANCE NO. 13281) AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT NO. 10678
WITH M3 ENGINEERING GROUP, P.C. FOR CSO VOLUME REDUCTION – GREEN
INFRASTRUCTURE (PILOT PROGRAM) (11048) FOR ENGINEERING SERVICES,
INCLUDING DESIGN, GEOTECHNICAL INVESTIGATION, PLANTING PLAN, AND OTHER
ENGINEERING SERVICES.
ADOPTION OF PROPOSED ORD. NO. 13282 (ORDINANCE NO. 13282) TRANSFERRING
$4,000,000.00 FROM THE SANITARY REPLACEMENT FUND #660 TO THE #101 GENERAL
FUND AND MAKING A SUPPLEMENTAL APPROPRIATION OF $4,000,000.00 FOR
ADDITIONAL ENGINEERING SERVICES FOR COMBINED SEWER AREA –
INFLOW/INFILTRATION ASSESSMENT (FY2012) (10232); AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO AMENDMENT NO. 4 TO
CONTRACT E-1215 WITH RJN GROUP, INC. FOR THE AFORESAID ADDITIONAL
ENGINEERING SERVICES.
ADOPTION OF PROPOSED ORD. NO. 13283 (ORDINANCE NO. 13283) TRANSFERRING
$25,000.00 FROM THE IMPROVEMENT FUND TO THE GENERAL FUND, AND $75,000.00
FROM THE IMPROVEMENT FUND TO THE SANITARY REPLACEMENT FUND,
APPROPRIATING $25,000.00 FROM THE GENERAL FUND, AND $75,000.00 FROM THE
SANITARY REPLACEMENT FUND TO BE USED FOR THE GENERAL SERVICES
AGREEMENT – CONSTRUCTION MANAGEMENT (FY2012) (10612) THROUGHOUT THE
DISTRICT, AUTHORIZING THE DIRECTOR OF FINANCE TO MAKE TRANSFERS BETWEEN
THE #101 GENERAL FUND AND THE #660 SANITARY REPLACEMENT FUND TO
ACCOMMODATE THE APPROPRIATE ACCOUNTING, AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT NO. 10679
WITH ABNA ENGINEERING, INC. FOR GENERAL SERVICES AGREEMENT –
CONSTRUCTION MANAGEMENT (FY2012) (10612) FOR GEOTECHNICAL SERVICES AT
VARIOUS LOCATIONS THROUGHOUT THE DISTRICT.
ADOPTION OF PROPOSED ORD. NO. 13284 (ORDINANCE NO. 13284) TRANSFERRING
$5,000.00 FROM THE IMPROVEMENT FUND TO THE GENERAL FUND, AND $45,000.00
FROM THE IMPROVEMENT FUND TO THE SANITARY REPLACEMENT FUND,
APPROPRIATING $5,000.00 FROM THE GENERAL FUND, AND $45,000.00 FROM THE
SANITARY REPLACEMENT FUND TO BE USED FOR THE GENERAL SERVICES
AGREEMENT – GEOTECHNICAL (FY2012) CONTRACT A (10613) THROUGHOUT THE
DISTRICT, AUTHORIZING THE DIRECTOR OF FINANCE TO MAKE TRANSFERS BETWEEN
THE #101 GENERAL FUND AND THE #660 SANITARY REPLACEMENT FUND TO
ACCOMMODATE THE APPROPRIATE ACCOUNTING, AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT NO. 10680
WITH SHANNON & WILSON INC. FOR GENERAL SERVICES AGREEMENT –
GEOTECHNICAL (FY2012) CONTRACT A (10613) FOR GEOTECHNICAL SERVICES AT
VARIOUS LOCATIONS THROUGHOUT THE DISTRICT.
ADOPTION OF PROPOSED ORD. NO. 13285 (ORDINANCE NO. 13285) TRANSFERRING
$5,000.00 FROM THE IMPROVEMENT FUND TO THE GENERAL FUND, AND $45,000.00
FROM THE IMPROVEMENT FUND TO THE SANITARY REPLACEMENT FUND,
APPROPRIATING $5,000.00 FROM THE GENERAL FUND, AND $45,000.00 FROM THE
SANITARY REPLACEMENT FUND TO BE USED FOR THE GENERAL SERVICES
AGREEMENT – GEOTECHNICAL (FY2012) CONTRACT B (10614) THROUGHOUT THE
DISTRICT, AUTHORIZING THE DIRECTOR OF FINANCE TO MAKE TRANSFERS BETWEEN
THE #101 GENERAL FUND AND THE #660 SANITARY REPLACEMENT FUND TO
ACCOMMODATE THE APPROPRIATE ACCOUNTING, AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT NO. 10681
WITH GEOTECHNOLOGY INC. FOR GENERAL SERVICES AGREEMENT –
GEOTECHNICAL (FY2012) CONTRACT B (10614) FOR GEOTECHNICAL SERVICES AT
VARIOUS LOCATIONS THROUGHOUT THE DISTRICT.
ADOPTION OF PROPOSED ORD. NO. 13286 (ORDINANCE NO. 13286) TRANSFERRING
$5,000.00 FROM THE IMPROVEMENT FUND TO THE GENERAL FUND, AND $45,000.00
FROM THE IMPROVEMENT FUND TO THE SANITARY REPLACEMENT FUND,
APPROPRIATING $5,000.00 FROM THE GENERAL FUND, AND $45,000.00 FROM THE
SANITARY REPLACEMENT FUND TO BE USED FOR THE GENERAL SERVICES
AGREEMENT – GEOTECHNICAL (FY2012) CONTRACT C (10615) THROUGHOUT THE
DISTRICT, AUTHORIZING THE DIRECTOR OF FINANCE TO MAKE TRANSFERS BETWEEN
THE #101 GENERAL FUND AND THE #660 SANITARY REPLACEMENT FUND TO
ACCOMMODATE THE APPROPRIATE ACCOUNTING, AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO CONTRACT NO. 10682
WITH HANSON PROFESSIONAL SERVICES, INC. FOR GENERAL SERVICES AGREEMENT
– GEOTECHNICAL (FY2012) CONTRACT C (10615) FOR GEOTECHNICAL SERVICES AT
VARIOUS LOCATIONS THROUGHOUT THE DISTRICT.
ADOPTION OF PROPOSED ORD. NO. 13287 (ORDINANCE NO. 13287) TRANSFERRING
$1,500,000.00 FROM THE SANITARY REPLACEMENT FUND #660 TO THE #101 GENERAL
FUND AND MAKING A SUPPLEMENTAL APPROPRIATION OF $1,500,000.00 FOR
ADDITIONAL ENGINEERING SERVICES FOR SEPARATE SEWER AREA –
INFLOW/INFILTRATION ASSESSMENT (FY2012) (10231); AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO AMENDMENT NO. 4 TO
CONTRACT E-1214 WITH WOOLPERT CONSULTANTS, INC. FOR THE AFORESAID
ADDITIONAL ENGINEERING SERVICES.
ADOPTION OF PROPOSED ORD. NO. 13288 (ORDINANCE NO. 13288) AMENDING
ORDINANCE NO. 13181 TO MODIFY THE METROPOLITAN ST. LOUIS SEWER DISTRICT
PENSION PLAN AS REQUESTED BY THE INTERNAL REVENUE SERVICE WITH RESPECT
TO VESTING IN THE EVENT OF PLAN TERMINATION.
ADOPTION OF PROPOSED ORD. NO. 13289 (ORDINANCE NO. 13289) AUTHORIZING
$100,000.00 FROM THE GENERAL FUND OF THE DISTRICT FOR PROFESSIONAL
CONSULTING SERVICES FOR FLEET ASSESSMENT CONSULTING SERVICES, AND
AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF
OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT
WITH MERCURY ASSOCIATES, INC. FOR SAID PROFESSIONAL CONSULTING
SERVICES.
ADOPTION OF PROPOSED ORD. NO. 13290 (ORDINANCE NO. 13290) AUTHORIZING THE
CHAIRMAN OF THE BOARD OF TRUSTEES ON BEHALF OF THE METROPOLITAN ST.
LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH DELOITTE &
TOUCHE, LLP, WHEREBY DELOITTE & TOUCHE, LLP WILL PROVIDE INTERNAL AUDIT
SERVICES DURING THE PERIOD OF AUGUST, 2011 THROUGH AUGUST, 2012.
ADOPTION OF PROPOSED ORD. NO. 13291 (ORDINANCE NO. 13291) AUTHORIZING THE
CHAIRMAN OF THE BOARD OF TRUSTEES ON BEHALF OF THE METROPOLITAN ST.
LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH BROWN, SMITH,
WALLACE, LLC, WHEREBY BROWN, SMITH, WALLACE, LLC WILL PROVIDE INTERNAL
AUDIT SERVICES DURING THE PERIOD OF AUGUST, 2011 THROUGH AUGUST, 2012.
ADOPTION OF PROPOSED ORD. NO. 13292 (ORDINANCE NO. 13292) AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A GENERAL SERVICES
AGREEMENT WITH O. R. COLAN ASSOCIATES, INC. WHEREBY O. R. COLAN
ASSOCIATES, INC. WILL PROVIDE PROFESSIONAL ACQUISITION AND RELOCATION
SERVICES FOR CERTAIN PARCELS OF REAL PROPERTY WHICH ARE NEGATIVELY
IMPACTED BY FLOODING, EROSION, OR RELATED SEWER OR STORMWATER ISSUES,
AS WELL AS PROVIDE PROFESSIONAL SERVICES FOR THE CONVEYANCE OF CERTAIN
PROPERTIES THAT HAVE BEEN OR WILL BE DECLARED SURPLUS BY THE
METROPOLITAN ST. LOUIS SEWER DISTRICT.
Plan Approval
Baumgartner & Black Forest Sanitary Replacement Phase I (10066)
This project, located east and south of Baumgartner Road and west of Telegraph Road in
Unincorporated St. Louis County, Missouri, is to alleviate sanitary backups, overflowing
manholes and overcharged sanitary sewers during wet weather events. This project is in the
Fiscal Year 2012 Budget and the estimated construction cost is $1,864,000.
Motion made by Mr. Feldhaus, seconded by Mr. Visintainer, that the Consent
Agenda be adopted.
Motion passed – 6 ayes, no nays
Poll taken: R. Berry aye E. Ross aye
D. Visintainer aye J. Goffstein aye
J. Buford aye G. Feldhaus aye
The Chair declared the Consent Agenda adopted.
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UNFINISHED BUSINESS
Ordinances
None
Resolutions
None
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NEW BUSINESS
Ordinances
INTRODUCTION OF PROPOSED ORD. 13299 TRANSFERRING $550,000.00 FROM THE
IMPROVEMENT FUND TO THE GENERAL FUND, AND APPROPRIATING $550,000.00
FROM THE GENERAL FUND OF THE DISTRICT FOR THE OPERATION AND
MAINTENANCE OF STREAM FLOW GAUGES IN STREAM FLOW GAUGE OPERATION
(USGS) (FY2012) (10766); AND AUTHORIZING THE EXECUTIVE DIRECTOR AND
SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER
DISTRICT TO EXTEND AGREEMENT M-561 WITH THE UNITED STATES DEPARTMENT OF
THE INTERIOR (U.S. GEOLOGICAL SURVEY) FOR THE AFORESAID SERVICES.
Proposed Ord. No. 13299 was presented and read. The work to be done under
Contract #10422 is to continue to collect stream gauging information in 25 watersheds. For
FY2012, the USGS will continue the operation and maintenance of the existing network of 36
stream gauging stations in 25 watersheds within the District’s area. Stream stage (water
surface) and rainfall amounts will be collected with stream discharges (flow rates) determined
for each gauging station. Stream stage will be measured and recorded at 5-minute intervals
and transmitted via satellite to the USGS and automatically downloaded into a database. Stage
and discharge values will be displayed in a real-time fashion on the USGS public web page. In
addition, data reports or evaluations are provided by the USGS as an extension of staff, as
requested for use by the District. The data will be used to more reliable flood peak estimates for
use in hydrologic and hydraulic models or calculations at project locations within a drainage
basin. Stream gauging information and flood peak estimates are used for the District’s CSO
LTCP, water quality modeling, stormwater, and watershed planning and design of projects in
area streams, creeks and tributaries. The data and calculation methods are typically used for
projects such as: Water quality, streambank stabilization; storm sewer and channel sizing;
stream geomorphic assessments and stability; flood proofing and buyout evaluations; review
and validation of private development projects (subdivisions, culvert, and bridge replacements);
floodplain study evaluations; flooding complaint evaluations; Phase II Stormwater program;
Operations support; legal lawsuit defense and support; and Stormwater and Watershed
Facilities planning.
Motion made by Mr. Visintainer, seconded by Mr. Feldhaus that proposed Ord. No.
13299 be introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldlhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13300 TRANSFERRING $600,000.00 FROM
THE IMPROVEMENT FUND TO THE GENERAL FUND, AND APPROPRIATING $455,000.00
FROM THE GENERAL FUND OF THE DISTRICT TO CONTINUE THE OPERATION AND
MAINTENANCE OF WATER QUALITY SAMPLING AND ANALYSIS IN STREAM FLOW
WATER QUALITY SAMPLING (FY2012) (10768); AND AUTHORIZING THE EXECUTIVE
DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST.
LOUIS SEWER DISTRICT TO ENTER INTO AMENDMENT NO. 1 TO CONTRACT 10534
WITH THE GEOSYNTEC CONSULTANTS, INC. FOR THE AFORESAID SERVICES.
Proposed Ord. No. 13300 was presented and read. The work to be done under
Contract #10534 is to perform water quality sampling and analysis on several streams and
rivers within the District’s jurisdiction. The samples are analyzed for numerous pollutants to
determine the water quality health of streams relative to MDNR water quality standards and the
Clean Water Act. The District will use the analysis to determine what projects and/or best
management practices are necessary to meet the required water quality standards. The water
quality data will be used to monitor changes in water quality due to implementation of SSO,
CSO and Phase II Storm Water projects. The contract will consist of the following components:
• Prepare a Water Quality Monitoring Plan and a Quality Assurance Project Plan for
EPA approval as required in the Federal Consent Decree
• Sample six small streams twelve times for a total of 72 sampling events
• Sample nine sites on the Missouri and Mississippi Rivers ten times for a total of 90
sampling events
• Measure stream flow during sampling events
• Perform laboratory analysis including nutrients, bacteria and other pollutants on all
samples
• Validate water quality data and submit within six weeks of sample collection, prepare
monthly progress reports and issue an annual report within 2 months of final sampling
event.
• Prepare quarterly and annual water quality reports with statistical analysis and
interpretation of data
• Prepare up to six water quality data reports
• Provide water quality regulatory support services
Motion by Mr. Visintainer, seconded by Mr. Feldhaus that proposed Ord. No.
13300 be introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13301 APPROPRIATING $99,000.00 FROM THE
SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR GRAND
GLAIZE WWTP BRIDGE REPAIRS (11084) IN THE CITY OF VALLEY PARK, 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 AFORESAID CONSTRUCTION.
Proposed Ord. No. 13301 was presented and read. The work to be done under
Contract #10676 consists of replacing the expansion joints and bearing pads for the bridge
structure. The purpose of this project is to repair the bridge structure at the access to the Grand
Glaize Wastewater Treatment Plant. This project is scheduled to be completed in 90 days.
Motion by Mr. Feldhaus, seconded by Mr. Ross that proposed Ord. No. 13301 be
introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13302 APPROPRIATING $130,000.00 FROM
THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR THE
CONSTRUCTION OF SANITARY SEWERS IN SPRINGDALE LATERAL SANITARY RELIEF
(SKME-305) (10759), IN THE VILLAGE OF BEL RIDGE, MISSOURI; AND AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH
XL CONTRACTING, INC. FOR THE AFORESAID SANITARY SEWER CONSTRUCTION.
Proposed Ord. No. 13302 was presented and read. The work to be done under
Contract #10677 consists of the construction of approximately 709 lineal feet of 12-inch
diameter pipe sewers and appurtenances. The purpose of this project is to alleviate building
backups and overcharged sanitary sewers. This project will eliminate one SSO. This project is
scheduled to be completed in 120 days.
Motion by Mr. Feldhaus seconded by Mr. Visintainer that proposed Ord. No. 13302
be introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13303 APPROPRIATING $1,000,000.00 FROM
THE BLACK CREEK OMCI FUND FOR THE ACQUISITION, DEMOLITION AND RELATED
ACTIVITIES OF REAL PROPERTY FOR FLOOD MITIGATION PURPOSES AND FOR THE
WEAVER AVENUE #7761 - #7767 FLOOD MITIGATION (11102) IN THE CITY OF
MAPLEWOOD, MISSOURI; AND AUTHORIZING THE EXECUTIVE DIRECTOR AND
SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER
DISTRICT TO ACQUIRE, DEMOLISH, AND PERFORM RELATED ACTIVITIES FOR REAL
PROPERTY NECESSARY FOR THE ABOVE PROJECT.
Proposed Ord. No. 13303 was presented and read. The work to be done under
this contract consists of a voluntary buyout/acquisition of four (4) properties in the 7700 block of
Weaver Avenue, in the City of Maplewood, to allow the removal of improvements and relocate
residents in this area that is prone to flooding due to inadequate drainage. The cost associated
with relieving the drainage issues and the associated street flooding outweighed the estimated
cost to remove all the improvements and relocate the residents of the four properties. The effort
will include the demolition of approximately four structures and securing the site. Since this is a
voluntary buyout, owners will be given compensation for the value of their property and the
expenses related to the transaction, but will not be given additional compensation for
replacement housing under the Code of Federal Regulations Uniform Relocations and Real
Property Assistance Act (49CFR Part 24, amended). A real property acquisition consultant will
perform all negotiations and management of the property acquisition from the first contact with
the owners through the closing. The District will contract for the demolition, asbestos removal,
and final restoration of the site and structures under separate contracts through the Purchasing
Division. All of these activities will be funded from this appropriation.
Motion by Mr. Buford seconded by Mr. Feldhaus that proposed Ord. No. 13303 be
introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13304 AUTHORIZING THE EXECUTIVE
DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST.
LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH KOHN, SHANDS, ELBERT,
GIANOULAKIS & GILJUM, LLP, WHEREBY KOHN, SHANDS, ELBERT, GIANOULAKIS &
GILJUM, LLP WILL PROVIDE LEGAL CONSULTING SERVICES PERTAINING TO
STORMWATER RATE ISSUES.
Proposed Ord. No. 13304 was presented and read. Kohn, Shands, Elbert,
Gianoulakis & Giljum, LLP is uniquely qualified in the continuing representation of the District in
rate issues including Hancock Law. The case of Zweig, et al vs. MSD was filed in 2008 and is
currently on appeal with the Missouri Court of Appeals. It is possible that this case may be
eventually appealed to the Missouri Supreme Court for final decision or remanded to the trial
court by either the Court of Appeals or the Supreme Court for additional litigation.
Motion by Mr. Buford seconded by Mr. Ross that proposed Ord. No. 13304 be
introduced.
Motion passed – 5 ayes, no nays, 1 abstain
Poll taken: J. Goffstein aye R. Berry abstain
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13305 AUTHORIZING THE EXECUTIVE
DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST.
LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH SHOOK, HARDY & BACON
LLP, WHEREBY SHOOK, HARDY & BACON LLP WILL PROVIDE LEGAL CONSULTING
SERVICES IN THE AREA OF ENVIRONMENTAL LAW.
Proposed Ord. No. 13305 was presented and read. Shook, Hardy & Bacon LLP is
uniquely qualified in the continuing representation of the District.
Motion by Mr. Buford seconded by Mr. Feldhaus that proposed Ord. No. 13305 be
introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13306 AUTHORIZING THE EXECUTIVE
DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST.
LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH FOX LAWSON &
ASSOCIATES FOR A COMPENSATION STUDY OF SCHEDULES “A” ADMINISTRATIVE AND
TECHNICAL, “B” LABOR AND TRADES, AND “C” MANAGEMENT.
Proposed Ord. No. 13306 was presented and read. This study will ensure that
compensation is (1) competitive with other organizations for comparable qualifications and
responsibilities; and (2) an incentive for each employee to achieve annual objectives and
increase his / her value to the District by improving skills.
Motion by Mr. Ross seconded by Mr. Visintainer that proposed Ord. No. 13306 be
introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION OF PROPOSED ORD. NO. 13307 REPEALING ORDINANCE NO. 12957 AS
ADOPTED SEPTEMBER 10, 2009, AND ENACTING A NEW ORDINANCE IN LIEU THEREOF,
ESTABLISHING A CONFLICT OF INTEREST POLICY FOR DISTRICT TRUSTEES,
OFFICERS AND EMPLOYEES.
Proposed Ord. No. 13307 was presented and read. The MSD Charter and State
Law prohibits MSD trustees, officers, and employees from engaging in conduct which could be
perceived as a conflict of interest.
Motion by Mr. Feldhaus seconded by Mr. Visintainer that proposed Ord. No. 13307
be introduced.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye R. Berry aye
E. Ross aye D. Visintainer aye
J. Buford aye G. Feldhaus aye
INTRODUCTION AND ADOPTION OF PROPOSED ORD. NO. 13308 AUTHORIZING THE
EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO AN ESCROW
AGREEMENT WITH GREENSFELDER, HEMKER & GALE, P.C. (GHG) AND UMB BANK, N.A.
(ESCROW AGENT) TO DEPOSIT APPROXIMATELY $4,833,828.28 INTO ESCROW
PURSUANT TO THE ESCROW AGREEMENT. PAYMENT INCLUDES PLAINTIFF’S
COUNSEL’S LEGAL FEES AND EXPENSES AND POST-JUDGMENT INTEREST AWARDED
IN WILLIAM D. ZWEIG, ET AL VS. MSD, WITH AN EMERGENCY CLAUSE.
Proposed Ord. No. 13308 was presented and read. Greensfelder Hemker & Gale,
P.C. (GHG) represents the plaintiffs in a class action case filed in the Circuit Court of St. Louis
County against MSD styled Zweig, et al. v. The Metropolitan St. Louis Sewer District, Cause No.
08SL-CC03051, alleging that MSD’s Stormwater User Charge based on impervious area
violated Article X, Section 22 of the Missouri Constitution, also known as the Hancock
Amendment, and seeking injunctive and declaratory relief, a refund of the amounts paid by
MSD’s customers (the proposed class) and attorneys’ fees and costs under Section 23 of the
Hancock Amendment (“Lawsuit”). The Lawsuit was tried in three phases, the first being whether
MSD’s Stormwater User Charge violated the Hancock Amendment, the second being whether a
class should be certified for a refund and whether the plaintiffs and class were entitled to refund
of the amounts paid to MSD under the Stormwater User Charge, and the third being what
amount of attorneys’ fees, costs and expenses GHG should be awarded in the Lawsuit. In the
first phase, on July 9, 2010, the trial court ruled in favor of the plaintiffs and held that MSD’s
Stormwater User Charge violated the Hancock Amendment (“Liability Judgment”). In the
second phase, on November 23, 2010, the trial court certified a class and ruled that no refund
would be awarded to the class (“Refund Judgment”). In the third phase, on February 3, 2011,
the trial court awarded GHG a total of $4,828,828.28 in attorneys’ fees, costs and expenses
(“Attorneys’ Fees Award”). MSD has filed notices of appeal in the Missouri Court of Appeals,
Eastern District, on the July 9, 2010 Liability Judgment (Appeal No. ED96110) and the February
3, 2011 Attorneys’ Fees Award (Appeal No. ED96393), and the plaintiffs, through GHG, have
filed a notice of cross-appeal on the November 23, 2010 Refund Judgment (Appeal No.
ED96165) (“Appeals”). MSD and GHG dispute whether post-judgment interest accrues on the
Attorneys’ Fees Award. In order to avoid further litigation regarding the issue of whether post-
judgment interest accrues on the Attorneys’ Fees Award, MSD and GHG have agreed that MSD
shall deposit approximately Four Million Eight Hundred Thirty Three Thousand Eight Hundred
Twenty-Eight and 28/100 Dollars ($4,833,828.28) in escrow with the Escrow Agent on the terms
and conditions contained herein. The initial appropriation of $4,828,828.00 was appropriated in
Ordinance No. 13213, adopted February 10, 2011.
Motion by Mr. Visintainer seconded by Mr. Ross that proposed Ord. No. 13308 be
introduced.
Motion made, seconded and unanimously adopted to suspend the rules to allow
for adoption of proposed Ord. No. 13308.
Motion made by Mr. Feldhaus, seconded by Mr. Ross that proposed Ord. No.
13308 be adopted.
Motion passed – 6 ayes, no nays
Poll taken: J. Goffstein aye J. Buford aye
D. Visintainer aye R. Berry aye
E. Ross aye G. Feldhaus aye
The Chair declared proposed Ord. No. 13308 adopted and it was assigned Ordinance No.
13308.
Resolutions
ADOPTION OF RESOLUTION NO. 2985 TRANSFERRING UNENCUMBERED FUND
BALANCES TOTALING $3,800,000.00 FROM THE GENERAL FUND WITH $1,800,000.00 TO
THE WATER BACKUP FUND AND $2,000,000.00 TO THE SANITARY REPLACEMENT
FUND; AND TRANSFERRING UNENCUMBERED APPROPRIATED BALANCES TOTALING
5,568,000.00 BETWEEN DEPARTMENTS AND FUNDS WITH $383,000.00 TO THE
GENERAL FUND AND $5,185,000.00 TO THE WATER BACKUP FUND.
Resolution No. 2985 was presented and read.
ADOPTION OF RESOLUTION NO. 2986 WHEREAS THE METROPOLITAN ST. LOUIS
SEWER DISTRICT HAS ESTABLISHED AN EMPLOYEE PENSION PLAN IN ACCORDANCE
WITH PROVISION OF THE DISTRICT’S PLAN, SECTION 3.020, PARAGRAPH 22, AND
THROUGH THE ENACTMENT OF ORDINANCE NO. 4641 AS AMENDED WHICH PROVIDES
FOR THE PENSIONING AND OTHER RETIREMENT BENEFITS OF EMPLOYEES OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT AND SPOUSES AND MINOR CHILDREN OF
DECEASED EMPLOYEES, AND PROVIDES FOR THE PAYMENT OF PUBLIC FUNDS FOR
SUCH PURPOSES, IN ACCORDANCE WITH THE MISSOURI CONSTITUTION OF 1945, AS
AMENDED, AND THE MISSOURI STATUTES ENACTED AUTHORIZING SAID PENSION
PLAN, AND THE PLAN OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT.
Resolution No. 2986 was presented and read.
ADOPTION OF RESOLUTION NO. 2987 WHEREAS SECTION 9.3 OF THE PENSION PLAN
OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT PROVIDES THAT THE BOARD OF
TRUSTEES OF THE DISTRICT, MAY FROM TIME TO TIME, APPOINT ONE OR MORE
INVESTMENT MANAGERS TO ACT ON BEHALF OF ANY TRUSTEE OR TRUSTEES OF
THE PENSION PLAN WITH RESPECT TO ALL OR A SPECIFIED PORTION OF THE ASSETS
OF THE PENSION FUND HELD BY SAID TRUSTEE.
Resolution No. 2987 was presented and read.
ADOPTION OF RESOLUTION NO. 2984 EXPRESSING THE BOARD OF TRUSTEES’
APPRECIATION TO STEVEN E. BROWN FOR HIS 10 YEARS OF EXEMPLARY SERVICE TO
THE METROPOLITAN ST. LOUIS SEWER DISTRICT FROM NOVEMBER 27, 2000, TO HIS
RETIREMENT EFFECTIVE AUGUST 1, 2011.
Resolution No. 2984 was presented and read.
Motion made by Mr. Buford, seconded by Mr. Visintainer that Resolution Nos.
2984, 2985, 2986 and 2987 be adopted.
Motion passed – voice vote; 6 ayes, no nays
- - - -
Upon motion made Mr. Buford, seconded by Mr. Visintainer, and unanimously
passed, the meeting adjourned at 5:28 p.m.
Secretary-Treasurer