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HomeMy Public PortalAbout1514th Board Journal 3-8-2012 JOURNAL OF THE (1514th) MEETING OF THE BOARD OF TRUSTEES THE METROPOLITAN ST. LOUIS SEWER DISTRICT March 8, 2012 – 4:00 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, V. Chair S. E. Myers, General Counsel J. H. Goffstein K. J. Tyminski, Secretary-Treasurer E. G. Ross J. M. Zimmerman, Director of Finance D. A. Visintainer B. L. Hoelscher, Director of Engineering M. E. Yates J. C. Sprague, Director of Operations Also present were Tom Sullivan, 35 N. Central; William Ray, St. Louis County; Pam Hobbs, Geotechnology; Stephen Gregali, City of St. Louis; Dave Yates, CH2M Hill; Steve Lewis, AGC; Bruce Wood, KAI; Granville White, Kwame; Nicole Young, CDM; Patrick Kozeny, Kozeny-Wagner; John Kindschuh, Bryan Cave; Reider Berry, RDB; Jessie Bobo, MOKAN; Joe Britt, Wells Fargo; Terry Artis, River City Examiner; Steve Cauley, Laborers EMLDC; Vicki LaRose, CDI; Rob Kuenzel, RJN; Rebecca Losli, Losli Engineering; Scott Byrne, Carpenters Council; Ronny Griffin, Laborers Local 110; Michael Kennedy, KAI; Keith Raymond, MOKAN; Damone Johnson, J&J; Sylvester Tramble, Laborer; Sunil Thackkar, Jason Tech; K.C. Slay, Slay Plumbing; Timothy Anderson, Local 396; Terry Briggs, SITE; Marvin Sanders, Carpenters Council; Wiley Price, St. Louis American; John Choinka, HR Green; Ron Krusie, Burns & McDonnell; Aaron Griesheimer, SITE; Jessie Blake, MOKAN; Richard Smith, Local 396; Melda Collins, MOKAN; Shaun Carr, MOKAN; Yaphette El-Amin, MOKAN; Al Bond, Carpenters Council; Mark Shivers, Iron Worker 396; Lisa Langenekert, BJH; Anil Moore, Local 110; Jeff Rensing, Oates Associates; Mike Borgard, Woolpert; Rachel Carlson, Carpenters Council;; Todd Loretta, MSD; Carole Willis, MSD; Steve Trenz, MSD; Marie Collins, Asst. Director of Engineering; Barb Mohn, Director of Information Systems; Ed Travis, Asst. Director of Human Resources; Vicki Taylor-Edwards, Director of Human Resources; Mike Grace, Risk Management; Debbie Johnson, Public Information Representative; Lance LeComb, Manager of Public Information; and Pam Bell, Secretary to the Executive Director. - - - - Mr. Berry opened the meeting pursuant to notice and call. - - - - Motion made by Mr. Ross, seconded by Mr. Visintainer, that the Board go into closed session to discuss legal, confidential or privileged matters under §610.021(1), RSMO 1988 SUPP.; leasing, purchase or sale of real estate under §610.021(2). Motion passed – 5 ayes, no nays Poll taken: D. Visintainer aye R. Berry aye J. Yates aye J. Buford aye E. Ross aye Mr. Goffstein arrived after motion for closed session. During closed session staff updated the Board on the legal strategy related to the Storm Water Hancock Litigation and potential litigation pursuant to to§610.021(1), RSMO 1988 SUPP. No votes were taken on this matter. The Board was also discussed and voted to approve the purchase of property located at 1321 Clinton, by the LRA, and the purchase of properties located at 7765 and 7767 Weaver in Maplewood for $75,000 and $79,000 respectively plus administrative expenses associated with closing and relocation. Motion by Mr. Goffstein seconded by Mr. Ross that the purchase of properties located at 1321 Clinton, 7765 and 7767 Weaver be introduced. Motion made, seconded and unanimously adopted to suspend the rules to allow for adoption of proposed purchase. Motion made by Mr. Goffstein, seconded by Mr. Ross that the purchase of properties located at 1321 Clinton, 7765 and 7767 Weaver be adopted. Motion passed – 6 ayes, no nays Poll taken: E. Ross aye D. Visintainer aye J. Goffstein aye R. Berry aye J. Buford aye M. Yates aye Motion made by Mr. Goffstein, seconded by Mr. Yates, to reconvene into open session. Motion passed – 6 ayes, no nays Poll taken: E. Ross aye D. Visintainer aye J. Goffstein aye R. Berry aye J. Buford aye M. Yates aye - - - - Upon motion made by Mr. Buford, seconded by Mr. Ross, the Journal of the February 9, 2012 meeting was approved by unanimous voice vote. - - - - The Chair had no comments. - - - - Mr. Visintainer reported that the Program Management Committee met on February 28, 2012 at 7:30 a.m. The meeting was attended by Trustees Visintainer, Ross, Berry, and Buford. The minutes of the February 7, 2012 meeting were approved. The agenda items to be introduced tonight were presented and discussed, including a detailed discussion regarding the following items: Item 16 – Coldwater Disinfection Facilities – Last month, staff reported on this project that the low bidder was Kozeny-Wagner and that they had complied with the District’s MWBE policy for this project with sufficient good faith documentation. The committee directed staff to provide additional review of the bids and to report back this month. Staff reported that they had completed their additional review. Kozeny-Wagner submitted MWBE participation information on second tier sub-contractors that were part of their original bid but were not identified as MWBE participation. A review by staff concludes that the MWBE participation for Kozeny-Wagner is 12.85% versus the 4.51% reported last month. Along with the sufficient good faith effort, documentation submitted by Kozeny-Wagner at the time of bid staff is recommending award of this contract to Kozeny-Wagner. Staff also performed a detailed review of the 2nd low bid by Plocher Construction and the 3rd low bid by KCI. Staff found that Plocher’s MWBE participation totaled 10.20% versus the 32% reported last month. The reduction was mostly due to the classification of listed MWBE sub-contractors as brokers and suppliers. KCI’s final MWBE participation totaled 8.25%. The committee and staff then had an extended discussion regarding the District’s process for reviewing the MWBE documentation submitted with bids. The committee recommended that additional review be done of submittals by those other than the low bidder when there is such a large discrepancy between reported participation percentages. As part of the current MWBE program review, staff indicated they would review additional resource needs for the MWBE program. Item 17 – Coldwater Disinfection Facilities Engineering Services – This agenda item provides funds for the design consultant to answer questions, respond to proposals, review shop drawings, provide as-built drawings, and perform other duties as needed during the construction of this project. The final consultant contract value provided for over $90 million in construction and a District-wide evaluation to determine the most appropriate disinfection strategy for 5 of the District’s wastewater treatment plants. Item 18 – Peerless Park Sewers – This agenda item allows MSD to enter into an agreement with the City of Valley Park to provide a $2 million interest free loan to assist in the construction of new sanitary sewers. Funding for this project is from the Lower Meramec OMCI, which can fund sanitary sewer construction. The loan will be repaid once the project is completed at $200,000 per year for 10 years by the City of Valley Park. The meeting was adjourned at 7:55 a.m. - - - - Mr. Goffstein reported that the Stakeholder Relations Committee met on March 6, 2012 at 8:20 a.m. In attendance were Trustees Goffstein, Berry, Buford, Ross, Visintainer and Yates. Mr. Theerman brought forth a presentation regarding the MWBE Interim Goals. The goals were suggested as a first step in improving the District's inclusion programs while the disparity study is being completed. Mr. Theerman presented recent and historical contracting participation as it related to building and non-building construction, as well as professional services. He explained the proposed interim contracting goals for same, and also indicated that workforce goals have been added where they had not been included in the past. Other changes discussed included program monitoring and expansion, public outreach and education and continued stakeholder dialogue. Mr. Claude Brown, who is assisting District staff with stakeholder discussions on this topic, spoke about the interim goals and indicated that ultimately, it is the District, Trustees, and stakeholders interest to craft a plan that everyone will agree upon. It was voted by the committee to include a resolution to accept the interim MWBE goals. This is Item No. 24 on tonight's agenda. Mr. Tyminski, Dr. Terry Jones of UMSL, and Robert Ballsrud of Gilmore & Bell, presented the Charter Plan Change proposition items for the June 2012 election ballot. All proposed plan changes have been discussed and illustrated in previous committee meetings. A telephone survey was conducted in early February 2012 throughout the City and Counties of St. Louis on several items, primarily to gauge support for a bond issue and potential charter amendments. Dr. Jones discussed the survey results as they related to the eleven potential Charter amendments and also indicated that with an educational effort, the percentages relating to a positive outcome on the bond issue would likely increase. Mr. Ballsrud discussed the language of the proposed charter amendments on a ballot. He also presented a draft of the ordinance that will be presented at tonight's meeting. Changes and updates have been made to both documents as a result of the survey findings and will be further updated and refined as comments and suggestions were provided by various Trustees. The committee agreed to include this item for introduction and adoption on tonight’s agenda. - - - - Mr. Ross reported that the Audit Committee met on January 19, 2012 at 7:30 a.m. In attendance were Trustees Berry, Ross, and Visintainer. The Committee approved the minutes from the prior meeting. Mr. Loretta provided the attendees with copies of the RFP drafts for external and internal audit services. He discussed the status of the current audit service contracts and stated that each contract is expiring with the completion of fiscal 2012 audit services. The general contract period for the RFP will be for a one-year contract with four one-year renewal options. The RFP process and the related timeline were discussed and the Committee voted to approve the RFP Mr. Loretta provided the attendees with a copy of the report for the Payroll Process Review. He discussed the scope and objectives of the engagement and reported that overall, the engagement results were satisfactory. Mr. Kesanapalli of Brown Smith Wallace provided the attendees with a copy of the report for the Oracle Business Suite Post Implementation Review. He discussed the report and summarized the engagement results and comments. No action plans or responses are required by the process owners. No conditions or issues requiring the immediate attention of management or the audit committee were noted. Mr. Helle of Brown Smith Wallace provided the attendees with a copy of the report for the Review of Overhead Rates for Engineering Contractors. He addressed the contents of the report and explained that an objective of the engagement procedures was to determine compliance with Federal Acquisition Regulation 31. Procedures were focused on unallowable costs as determined by the guidelines in FAR 31. Overall, the engagement revealed no material errors, miscalculations or any clear errors in methodology. However, one firm was not compliant with FAR 31. As a result, Internal Audit recommended that the overhead rate utilized by the identified firm should be seven percentage points lower for the field and the office. The meeting adjourned at approximately 8:30 am. The Audit Committee met on March 6, 2012 at 7:00 a.m. In attendance were Trustees Berry, Buford, Ross and Visintainer. The Committee approved the minutes from the prior meeting. Mr. Tyminski provided the attendees with copies of the presentation summarizing the District’s recommendations for the upcoming contracts for external and internal audit services and explained that the RFPs for both contracts were sent out concurrently in an attempt to keep the two contracts operating on the same cycle. He also explained that the contract for the external audit services is on a very tight timeline as it is critical to the District’s efforts to issue bonds and obtain financing during the summer of 2012. He discussed the status of the current external audit service contract, stating that the contract expired with the completion of audit services for the fiscal 2011 year-end. The proposed contract will be a one- year contract with four one-year renewal options, exercisable solely at the discretion of the District. To assist the Board in their decision, the District assembled a five-member internal selection committee consisting of members of Finance, Treasury and Internal Audit. The committee reviewed the proposals and rated the firms on the five criteria items contained in the RFP. Mr. Tyminski stated that the committee is recommending the selection of RubinBrown. He summarized the strengths and weaknesses of each firm as assessed by the committee. The Committee voted to retain RubinBrown. Mr. Tyminski continued with the presentation, addressed the upcoming contract for internal audit services, and explained that the proposed contract will be a one-year contract with four one-year renewal options, exercisable solely at the discretion of the District. He stated that proposals were received from five firms and that budgeted fees for fiscal 2013 are $240,000. He stated that the committee is recommending the selection of Brown Smith Wallace, despite being the highest cost. He reported that the committee felt that Brown Smith Wallace had the most complete package, especially in the area of construction. The committee reviewed the proposals and rated the firms on the five criteria items contained in the RFP. Mr. Tyminski summarized the strengths and weaknesses of each of the firms, as assessed by the committee. Mr. Tyminski reiterated the committee’s recommendation of Brown Smith Wallace and the committee voted to retain Brown Smith Wallace. Mr. Loretta provided the attendees with a copy of the March 6, 2012 Internal Audit Status Report and presented the status summary of current Internal Audit Projects. The meeting adjourned at approximately 8:15 a.m. - - - - Mr. Buford reported that the Finance Committee met on March 6, 2012. In attendance were Trustees Berry, Buford, Yates, Goffstein and Visintainer. The Committee approved minutes from the February 7, 2012 meeting. Mr. Douglas Moseley, from the District’s pension investment advisory firm NEPC, reported 4th Quarter Pension Fund results. At quarter end, the assets in the Fund totaled approximately $200.5 million, an increase of $12.4 million over the previous quarter. This change reflected investment gains of $10.2 million and net inflows of $2.1 million. The Fund’s equities allocation was 47% at the end of the quarter, which is below the comparable median public fund’s allocation of 51%. Mr. Moseley reported the Fund’s equity commitment ranked in the 65th percentile of the public funds universe. Mrs. Jan Zimmerman requested the District’s recommendation for Rate Design and Debt Feasibility Study Services be awarded to Raftelis Financial Consultants, Inc. The contract will be for one year with four one-year options. The five-year cost is $799,740. Mrs. Zimmerman highlighted the advantages of Raftelis as providing a more advanced and multi- functional financial model, a consulting team with greater experience with large bond and CIRP programs, CD compliance issues and strategic rate design. Ms. Zimmerman also indicated the Raftelis proposal achieves the District’s MWBE percent goal and views its use of MWBE firms as a mentoring program to foster the growth of their minority subcontractors. The Finance Committee unanimously approved the item be brought forward to the Board for consideration and is item #21 on tonight’s agenda. Mrs. Zimmerman presented the January 2012 Adjustment Review Committee report as required by ordinance. The Committee accepted the report into the record. She also reported on the financial condition of the District and indicated the overall assessment continues as sound meeting all operating reserves and bond covenant requirements. Mrs. Zimmerman stated the Preliminary FY13 budget will be delivered to the Board by March 15th as required by Charter and that two Finance Committee meetings will be needed in April to review the Operating and CIRP components in detail. - - - - The Executive Director had no report. - - - - Mr. Garry Elliott, Business Manager of the Eastern Labor Council and Training Organization, addressed the Board and stated that his organization had a change of position regarding the proposed MWBE interim goals, and they support the document as written as long as it is be applied consistently across the various trades. He apologized on behalf of his organization if there seemed to be a sense of exclusion of minorities in the trades. - - - - Mr. Carmel MacKlind of MacKlind Hauling and Vice Chair of MOKAN addressed the Board and asked that the District implement an interim goal of 25% MBE and 5% WBE for subcontractors. - - - - Mr. Sullivan addressed the Board and indicated that the proposed ordinance related to the Charter Change issues lacked appropriate public disclosure because they were being introduced and adopted at the same meeting and that the ordinance did not list the propositions, which were included in an exhibit. - - - - Mr. Adolphus Pruitt addressed the Board and inquired about the clause that would address the post-disparity study implementation process. Mr. Theerman read the clause covering that topic which indicated that the Board would adopt a policy in conformity with the study. Mr. Pruitt asked that the record of the Stakeholder Committee be amend to better reflect his remarks regarding the disparity study which should read that the firm doing the disparity study has never been challenged because of the quality of the reports put together. He indicated that counsel has been retained to draft a Community Workforce Agreement that MSD along with the trade unions and various stakeholder groups could agree on. He asked for clarification regarding situations in which if the disparity study was not met. Mr. Pruitt requested that the District consider a proposed community workforce agreement at a future Stakeholder’s Committee meeting. - - - - Mr. Reider Berry addressed the Board and indicated that he has overheard conversations at MSD where people are discussing how MSD is cutting back on minority participation. Mr. Berry, MSD Board Chair, indicated that it is not true and the District’s efforts have been focused on increasing minority participation. - - - - Mr. Tim Anderson, Iron Worker Local 396, addressed the Board and asked what procedures MSD has in place to assure that the contractors working for MSD hire the minorities from the union halls. Mr. Berry, Board Chair, indicated that we are enhancing the monitoring program at all levels to assure appropriate compliance. - - - - Ms. Yaphette El-Amin, Director of MOKAN, addressed the Board and indicated that MSD has the ability and the autonomy to set higher goals than those used by the federal government, which are 1 minority for every 7 and one female employee for every 14 workers. She indicated that she is puzzled at the lack of progress made by MSD in broadening its diversity efforts. She discussed several projects being constructed in the City of St Louis, which were meeting goals in the 40% range. - - - - Mr. Al Bond, Assistant Secretary-Treasurer of the Carpenter’s Council, addressed the Board and indicated that their membership includes over 20% minorities and they would like to see more “minority boots on the job”. - - - - CONSENT AGENDA ADOPTION OF PROPOSED ORD. NO. 13374 APPROPRIATING $260,000.00 FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR THE CONSTRUCTION OF SANITARY SEWERS IN CLAYRIDGE – BRANDY SANITARY RELIEF (11099), 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 HEARTLAND CONSTRUCTION & EXCAVATING FOR THE AFORESAID SANITARY SEWER CONSTRUCTION. ADOPTION OF PROPOSED ORD. NO. 13377 REPEALING SECTION TWO OF ORDINANCE NO. 13092, ADOPTED JUNE 10, 2010, AND ENACTING A NEW SECTION TWO IN LIEU THEREOF TO PROVIDE PROFESSIONAL SERVICES FROM BLACK & VEATCH CORPORATION (“B&V”) NOT TO EXCEED $172,000.00. ADOPTION OF PROPOSED ORD. NO. 13378 REPEALING SECTION TWO OF ORDINANCE NO. 13235, ADOPTED APRIL 20, 2011, AND ENACTING A NEW SECTION TWO IN LIEU THEREOF TO PROVIDE PROFESSIONAL SERVICES FROM BLACK & VEATCH CORPORATION (“B&V”) NOT TO EXCEED $59,000.00. Plan Approval Missouri River Bonfils Sanitary Sewer Rehabilitation (10708) This project, located in an area south of Highway 370, east of Earth City Expressway, north of Old St. Charles Road, and west of North Lindbergh Boulevard in the city of Bridgeton and St. Louis City (Lambert St. Louis International Airport property), Missouri, is to reduce inflow/infiltration. This project is in the Fiscal Year 2012 Budget and the estimated construction cost is $2,360,000. Meramec and Forest Park Parkway Sanitary Sewer Improvements (10704) This project, located north of Forest Park Parkway and east of Brentwood Boulevard in the City of Clayton, is to replace inadequate sanitary sewers and abandon redundant parallel sewers. This project is in the Fiscal Year 2012 Budget and the estimated construction cost is $140,000. Infrastructure Repairs (Rehabilitation) (FY 2012 Contract B) (11806) This project, located in the City of St. Louis, MO is to rehabilitate older, damaged and deteriorated sewers to reduce pipe collapses, blocked mains and inflow/infiltration. This project is in the Fiscal Year 2012 Budget and the estimated construction cost is $2,532,000. Motion made by Mr. Visintainer, seconded by Mr. Yates, that the Consent Agenda be adopted. Motion passed – 6 ayes, no nays Poll taken: E. Ross aye D. Visintainer aye J. Goffstein aye R. Berry aye J. Buford aye M. Yates aye The Chair declared the Consent Agenda adopted. - - - - UNFINISHED BUSINESS Ordinances None Resolutions None - - - - NEW BUSINESS Ordinances INTRODUCTION OF PROPOSED ORD. NO. 13375 APPROPRIATING $6,200,000.00 FROM THE SANITARY REPLACEMENT FUND TO BE USED FOR PROJECT COSTS FOR WASTEWATER TREATMENT PLANT CONSTRUCTION - COLDWATER TREATMENT PLANT DISINFECTION FACILITIES (10558), IN 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 KOZENY- WAGNER, INC. FOR THE AFORESAID CONSTRUCTION. Proposed Ord. No. 13375 was presented and read. The work to be done under Contract #10736 consists of the construction of a secondary treatment disinfection storage and feed facility, construction of a wet weather disinfection storage and feed facility, modifications to existing contact basin, modifications to the existing effluent junction chamber, and other miscellaneous items associated with this work. The purpose of this project is to meet EPA and MDNR regulatory mandates requiring disinfection of effluent. This project is scheduled to be completed in 455 days. Motion made by Mr. Visintainer, seconded by Mr. Berry that proposed Ord. No. 13375 be introduced. Motion passed – 6 ayes, no nays Poll taken: J. Goffstein aye E. Ross aye D. Visintainer aye R. Berry aye J. Buford aye M. Yates aye INTRODUCTION OF PROPOSED ORD. NO. 13376 MAKING A SUPPLEMENTAL APPROPRIATION OF $510,000.00 FROM THE SANITARY REPLACEMENT FUND FOR ADDITIONAL ENGINEERING SERVICES FOR THE FINAL DESIGN OF COLDWATER TREATMENT PLANT DISINFECTION FACILITIES (E-1186) (10558), AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO AMENDMENT NO. 8 OF CONTRACT E-1186 WITH BLACK & VEATCH CORPORATION, FOR THE AFORESAID ADDITIONAL ENGINEERING SERVICES. Proposed Ord. No. 13376 was presented and read. The work to be done under Contract E-1186 authorizes the District to enter into Amendment No. 8 with Black & Veatch Corporation. This amendment provides for the engineering construction phase services for Coldwater Treatment Plant Disinfection Facilities (10558). The current construction estimate for this project is $6,387,000. The amended design appropriation is $12,785,000.00. Motion by Mr. Visintainer, seconded by Mr. Ross that proposed Ord. No. 13376 be introduced. Motion passed – 6 ayes, no nays Poll taken: J. Goffstein aye J. Buford aye E. Ross aye D. Visintainer aye R. Berry aye M. Yates aye INTRODUCTION OF PROPOSED ORD. NO. 13379 APPROPRIATING $2,000,000.00 FROM THE LOWER MERAMEC RIVER BASIN OMCI AND AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER TO EXECUTE AN AGREEMENT FOR A NO INTEREST LOAN IN THE AMOUNT OF $2,000,000.00 TO THE CITY OF VALLEY PARK TO PROVIDE INITIAL CAPITAL FOR SANITARY SEWER DESIGN AND CONSTRUCTION IN THE CITY OF VALLEY PARK, PEERLESS PARK SEWERS (11835). Proposed Ord. No. 13379 was presented and read. This Contract #10741 authorizes the District to enter into an Inter-governmental Agreement with the City of Valley Park. The City of Valley Park is planning to provide sanitary sewers for an area formerly known as Peerless Park. The area is located directly to the northwest of the I-44 and Highway 141 intersection. The estimated cost of this project is $3-$4 million. The City of Valley Park has requested any assistance that is available from MSD for this project. This area falls within the Lower Meramec River Basin OMCI sub-district. The funds in this OMCI sub-district can only be used for sanitary sewer projects. Up until MSD stopped collecting taxes in this area in 2008, the properties in this area paid these OMCI property taxes even though they received no direct sanitary sewer service, from MSD. Staff has determined that it is a high-priority project to respond to the City of Valley Park’s request by providing an interest free $2 million loan to be paid back in 10 years. Motion by Mr. Visintainer, seconded by Mr. Berry that proposed Ord. No. 13379 be introduced. Motion passed – 6 ayes, no nays Poll taken: J. Goffstein aye J. Buford aye E. Ross aye D. Visintainer aye R. Berry aye M. Yates aye INTRODUCTION OF PROPOSED ORD. NO. 13380 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 FOR FISCAL YEAR 2013. Proposed Ord. No. 13380 was presented and read. The District received proposal packages from the following five firms: Brown Smith Wallace; Rubin Brown; UHY Advisors; Stone Carlie; and Schmersahl Trealor. The District’s Internal Selection Committee thoroughly reviewed the information contained in each proposal document. Based on the criteria outlined in the District document Request for Proposal 2150, the committee rated the firms and selected three firms for oral interviews. Based on the interviews and the previous review process, the committee selected one firm for recommendation to the Board. Motion made by Mr. Ross, seconded by Mr. Berry that proposed Ord. No. 13380 be introduced. Motion passed – 6 ayes, no nays Poll taken: J. Goffstein aye E. Ross aye D. Visintainer aye R. Berry aye J. Buford aye M. Yates aye INTRODUCTION OF PROPOSED ORD. NO. 13381 AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH RUBINBROWN, LLP, FOR AN INDEPENDENT AUDIT OF THE ACCOUNTING RECORDS OF THE DISTRICT. Proposed Ord. No. 13381 was presented and read. RubinBrown LLP will conduct an annual audit of the District’s year-end financial statements as required by Charter for FY 2012-2016 (if the District exercises annual contract options). RubinBrown LLP will also provide general account advisory services as needed. The District received proposal packages from the following ten firms: Rubin Brown; UHY Advisors; Schmersahl Trealor/Jeffrey Randle; KPMG; McGladrey, Kerber Eck & Braeckel; Clifton Larson Allen; Huber Ring Helm & Co.; Hochschild Bloom & Co.; and Anders Minkler & Diehl. Motion made by Mr. Visintainer, seconded by Mr. Buford that proposed Ord. No. 13381 be introduced. Motion passed – 6 ayes, no nays Poll taken: J. Goffstein aye E. Ross aye D. Visintainer aye R. Berry aye J. Buford aye M. Yates aye INTRODUCTION AND ADOPTION OF PROPOSED ORD. NO. 13382 AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY-TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH RAFTELIS FINANCIAL CONSULTANTS, INC. AND WHEREBY RAFTELIS FINANCIAL CONSULTANTS INC. WILL PROVIDE RATE DESIGN SOFTWARE, TRAINING AND SUPPORT SERVICES; RATE PROPOSAL PREPARATION AND EXPERT TESTIMONY FOR ANTICIPATED FUTURE RATE COMMISSION PROCEEDINGS, AND PREPARATION OF FINANCIAL FEASIBILITY STUDIES AS NEEDED FOR THE ISSUANCE OF DISTRICT BONDS, WITH AN EMERGENCY CLAUSE. Proposed Ord. No. 13382 was presented and read. Raftelis will provide comprehensive rate design services and assist the District and its financial advisors in preparing multiple debt feasibility studies needed to issue District bonds. These services include the delivery of customized rate design and financial planning software, which will allow the District to provide more sophisticated, and responsive rate modeling and financial projections as required by investors and stakeholders.. The Raftelis model will also increase the District’s ability to manage its operations within the Rate Commission Report parameters and serve as a reporting tool to monitor financial compliance with the Consent Decree. Consulting services will include training of in-house Staff in rate design and modeling techniques, development of the District’s next rate proposal and supporting expert testimony required during the Rate Commission proceedings in addition to expert testimony for other rate related matters as needed. Motion by Mr. Berry seconded by Mr. Buford that proposed Ord. No. 13382 be introduced. Motion made, seconded and unanimously adopted to suspend the rules to allow for adoption of proposed Ord. No. 13382. Motion made by Mr. Visintainer, seconded by Mr. Ross that proposed Ord. No. 13382 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 M. Yates aye The Chair declared proposed Ord. No. 13382 adopted and it was assigned Ordinance No. 13382. INTRODUCTION AND ADOPTION OF PROPOSED ORD. NO. 13383 WHEREAS AN ORDINANCE CALLING AN ELECTION FOR JUNE 5, 2012, IN THE METROPOLITAN ST. LOUIS SEWER DISTRICT, FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS OF SAID DISTRICT PROPOSITION TO AMEND THE PLAN (CHARTER) OF THE DISTRICT AND AUTHORIZING THE ELECTION AUTHORITIES OF THE CITY OF ST. LOUIS AND ST. LOUIS COUNTY TO CONDUCT SAID ELECTION; PRESCRIBING THE FORM OF PROPOSITIONS TO BE USED AND PROVIDING THAT NOTICE OF SAID ELECTION BE GIVEN AND SAID ELECTION BE HELD IN ACCORDANCE WITH ALL APPLICABLE MISSOURI LAW. Proposed Ord. No. 13383 was presented and read. This ordinance will authorize a series of amendments to be placed before the voters at an election to be held on June 5, 2012 to modernize and streamline the District’s governing Charter (Plan). Motion by Mr. Berry seconded by Mr. Visintainer that proposed Ord. No. 13383 be introduced. Motion made, seconded and unanimously adopted to suspend the rules to allow for adoption of proposed Ord. No. 13383. Motion made by Mr. Ross, seconded by Mr. Visintainer that proposed Ord. No. 13383 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 M. Yates aye The Chair declared proposed Ord. No. 13383 adopted and it was assigned Ordinance No. 13383. Resolutions ADOPTION OF RESOLUTION NO. 3015 WHEREAS ORDINANCE NO. 12788, ADOPTED DECEMBER 11, 2008, AUTHORIZED THE EXECUTIVE DIRECTOR AND SECRETARY- TREASURER ON BEHALF OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT TO ENTER INTO A CONTRACT WITH BANK OF AMERICA N.A. WHEREBY BANK OF AMERICA N.A. WILL PROVIDE BANKING AND SAFEKEEPING SERVICES FOR THE DISTRICT. Resolution No. 3015 was presented and read. ADOPTION OF RESOLUTION NO. 3014 EXPRESSING THE BOARD OF TRUSTEES’ APPRECIATION TO DAVID A. COLLORA FOR HIS 39 YEARS OF EXEMPLARY SERVICE TO THE METROPOLITAN ST. LOUIS SEWER DISTRICT FROM FEBRUARY 5, 1973, TO HIS RETIREMENT EFFECTIVE MARCH 1, 2012. Resolution No. 3014 was presented and read. ADOPTION OF RESOLUTION NO. 3016 WHEREAS GERALD FELDHAUS SERVED ON THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT FROM APRIL 9, 2008 TO JANUARY 16, 2012. Resolution No. 3016 was presented and read. Motion made by Mr. Buford, seconded by Mr. Ross that Resolution Nos. 3014, 3015 and 3016 be adopted. Motion passed – voice vote, all ayes - - - - ADOPTION OF RESOLUTION NO. 3017 WHEREAS THE METROPOLITAN ST. LOUIS SEWER DISTRICT IS FULLY COMMITTED TO THE UTILIZATION OF CERTIFIED MINORITY AND WOMEN BUSINESS ENTERPRISES AND MINORITY AND FEMALE WORKFORCES IN ALL ASPECTS OF ITS CONTRACTING ACTIVITIES TO THE MAXIMUM EXTENT NECESSARY TO ADEQUATELY ADDRESS ITS COMPELLING INTEREST IN REMEDYING PAST RACE AND SEX BASED DISCRIMINATION AND THE CORRESPONDING NEEDS AND OBSTACLES OF MINORITY AND WOMEN OWNED BUSINESSES TO GAIN GREATER ACCESS TO BUSINESS OPPORTUNITIES WITHIN THE DISTRICT’S JURISDICTION. Resolution No. 3017 was presented and read. Motion made by Mr. Ross, seconded by Mr. Visintainer that Resolution No. 3017 be adopted. Mr. Buford offers discussion on making additional amendments to Resolution 3017. Motion made by Mr. Ross, seconded by Mr. Yates that Resolution No. 3017 be amended. Motion passed – voice vote, all ayes Motion made by Mr. Ross, seconded by Mr. Buford that Resolution No. 3017 be adopted as amended. Motion passed – voice vote, all ayes - - - - Upon motion made Mr. Buford, seconded by Mr. Visintainer, and unanimously passed, the meeting adjourned at 6:10 p.m. Secretary-Treasurer