ELECTRONIC PACKET. January 22, 2018 Commission Meeting. RELEASED: Tuesday, January 16, 2018

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1 ELECTRONIC PACKET January 22, 2018 Commission Meeting RELEASED: Tuesday, January 16, 2018

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12 COMMISSION MEETING January 22, 2018 OPERATIONS AND MAINTENANCE REPORT FOR DECEMBER 2017 PAT OBENAUF & SCOTT ROYER PowerPoint presentation from Patrick Obenauf, Manager of Contract Compliance, and Scott Royer, General Manager, Veolia Water Milwaukee, LLC

13 Item 1 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Operations Committee RELATING TO: Award of Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs SUMMARY: The Commission is requested to award and to direct the Executive Director to execute on behalf of the District Contract J02013C02, Jones Island Water Reclamation Facility (JIWRF) Return Activated Sludge (RAS) Pipe Improvement Project, to J.F. Ahern Co., in the amount of $479,200. J.F. Ahern Co. was the lowest responsible, responsive bidder among three bids received. Further, the Commission is requested to decrease the total project cost (TPC) for Project J02013, East Plant RAS Header and Pump Replacement, by $219,604 for an amended TPC of $1,873,545, and to make a corresponding change to the TPC for Project M99001, Allowance for Cost and Schedule Changes. The main biological treatment process used at JIWRF takes place in large aeration basins that contain living microorganisms. The aeration basins are supplied with air as an oxygen source, allowing the microorganisms to metabolize and remove pollutants from wastewater. The population of microorganisms in the aeration tanks is commonly referred to as activated sludge. After the microorganisms have consumed the wastewater pollutants, the activated sludge must be separated from the treated water. The separation takes place by gravity in the facility s secondary clarifiers. The microorganisms that settle to the bottom of the clarifiers are either returned to the beginning of the biological treatment process as RAS, or removed from the system as waste activated sludge (WAS). ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER OP_Award_J02013C02_RAS_Pipe_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

14 SUMMARY (Cont d) Award of Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs Activated sludge withdrawn from the secondary clarifiers flows to the RAS and WAS pump stations. The RAS pumps return most sludge back into the aeration basins to maintain the proper population of microorganisms for wastewater treatment. The RAS pumping rate normally changes with the incoming wastewater flow rate. The WAS pumps remove a smaller portion of the sludge in proportion to the incoming organic mass to maintain the proper inventory of microorganisms in the treatment system. The RAS pumping system is critical to the operations of JIWRF. The JIWRF RAS pumping system is comprised of seven pumps, an original 48-inch diameter pipeline, a redundant 48-inch diameter pipeline, and a 30-inch diameter pipeline. The 30-inch diameter RAS pipeline was replaced in 2010 due to its age and poor condition. The original 48-inch diameter RAS pipeline, which was installed over 30 years ago, has been taken out of service due to significant leaks, and Veolia Water Milwaukee (VWM) is using the redundant 48-inch diameter RAS pipeline that was constructed in Due to the configuration of the redundant 48-inch pipeline, RAS pumping capacity is less than the original 48-inch pipeline. Staff originally recommended that the original 48-inch pipeline either should be relined or replaced to extend its useful service life, maximize JIWRF RAS pumping capacity, and restore redundancy. Engineering evaluation initially determined that pipeline relining was the most cost effective alternative over the life of the pipeline, and staff developed a construction contract bid package to perform that relining work. The District publicly advertised and bid the contract, but only received one bid from J.F. Ahern Co. While the bid was responsive and the bidder responsible, the bid was higher than budgeted by nearly $170,000. Costs for work to address internal corrosion pits in the pipeline were more than expected and previously experienced. Due to the bid being higher than the budgeted amount, the Commission rejected the lone bid. The bid package was revised to include two bid alternatives: Alternate A: reline the existing RAS pipeline, and Alternate B: replace the RAS pipeline. Following are the bid results. Bidder Alternate A Bid (reline pipe) Alternate B Bid (replace pipe) J.F. Ahern Co. $479,200 $479,200 Butters-Fetting Co $398,613 $660,000 Mechanical Inc. No Bid $990,000 2

15 SUMMARY (Cont d) Award of Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs Based upon the bids received for each alternative, District staff recommends awarding the contract to J.F. Ahern for Alternate B, RAS pipe replacement, because: Replacement has a lower life cycle cost than relining (50-year life for new versus 30-year life for relining). A new, replacement pipe (which includes a factory applied lining) will most likely have a longer lasting lining as compared to field lining an existing pipe. Relining has potential for increased costs as the interior condition of the existing 30-year old RAS pipe is not fully known. Replacement avoids those risks. The scope of contract J02013C02 includes: Preparation work, including relocating some existing conduits that interfere with the pipe replacement. Removing and replacing 200 feet of 48-inch RAS pipeline and fittings. Components will have a factory applied ceramic epoxy coating. Applying external pipeline coating. Pipeline testing and startup. The construction duration for this project is 300 calendar days. The low bid received by the District is less than budgeted and staff requests to reduce the TPC accordingly. Consistent with the Agreement for Management, Operations, and Maintenance Services between the District and VWM, VWM will make a $10,000 contribution to the District for this project. 3

16 RESOLUTION Award of Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, is awarded to J.F. Ahern Co. in the amount of $479,200, and that the Executive Director is directed to execute a contract on behalf of the District. FURTHER RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the total project cost for Project J02013, East Plant Return Activated Sludge Header and Pump Replacement, is decreased by $219,604 for an amended total project cost of $1,873,545, and that a corresponding change is made to the total project cost for Project M99001, Allowance for Cost and Schedule Changes. 4

17 Capital Budget Fiscal Note Total Project Cost RELATING TO: Award of Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs Capital Project Number(s) J02013-East Plant RAS Header and Pump Replacement Impact of Requested Action on Total Project Cost: Increase X Decrease New Project No Change Total Project Cost Analysis Project Costs Adopted 2018 Total Project Cost $2,093,149 Previously Approved Changes $0 Approved Total Project Cost $2,093,149 Requested Total Project Cost $1,873,545 Requested (Increase)/Decrease $219,604 Action to be taken to Long-Range Financing Plan to address Total Project Cost change Transfer from Allowance for Cost and Schedule Changes Transfer from another project (specify in comments) Delay Project(s) (specify in comments) Delete Project(s) (specify in comments) Other X Transfer to Allowance for Cost and Schedule Changes Comments The decrease in total project costs reflects the low bid received and accepted by the District. Budget Review by: Date: Theresa Zwieg 12/11/2017

18 Award of Contract J02013C02, Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs Procurement & S/W/MBE Summary Information Contract # J02013C02 Cost Center: Jones Island Water Reclamation Facility Return Activated Sludge Pipe Improvement Project, and Approve Changes in Total Project Costs ENG BID SUMMARY Bid Opening Date: 11/21/2017 Total SWMBE Local # of Bids # of Responsive Bids Bidders Price Responsive? Responsible? % Sub % SWMBE J.F. Ahern Co. Fond du Lac, WI Butters-Fetting Co. Milwaukee, WI Mechanical Inc. Freeport, IL $479, Responsive Responsible 10.3% 6.5% $660, Responsive Responsible 28.9% 2.8% $990, Responsive Responsible - - SUBCONTRACTOR INFORMATION Type Subcontractor Name Type of Work % Amount NON-SWMBE Pieper Electric Co. New Berlin, WI Electrical 3.8% $18, MBE Sanchez Coatings Wausau, WI Painting 3.2% $15, MBE Benavides Construction Waterford, WI Concrete 3.3% $15, ECONOMIC DEVELOPMENT ELEMENTS Workforce Requirements Sanitary Sewer Service Area (SSSA) Employment: 45% Target Area (TA) Employment: 20% # Apprentices Required: 0 12/22/ J02013C02

19 OUTREACH INFORMATION The Procurement team performed the following outreach: advertised in the Daily Reporter, sent an notification to all registered firms in the general contracting, electrical, painting/coating and welding categories and sent targeted s to 142 firms, including 46 SWMBE firms. Additional recommended firms (mechanical, painting, electrical) with past experience on MMSD projects were also contacted directly via . The bid opportunity is also publicly accessible from the MMSD website and Quest CDN. Quest CDN also performs outreach to its users when a bid is posted. S/W/MBE Planholders: Platt Construction, Inc., Thomas A. Mason Co., Inc., Badger Specialty Coatings & Construction If no or low S/W/MBE participation, explain why: Scope of work had (2) alternates. Alternate (A) would consist of removing in epoxy liner from the pipeline and repairing the interior pipeline. Alternate (A) would limit SWMBE participation, as there would be a reuirement for a specialty painting subcontractor capable of plural component epoxy application. Alternate (B) involves the replacement of the pipeline, lighting panel and terminal box, with no specialty paint services required. This alternate would include SWMBE participation. Approximately 57.3% of the work is material/equipment and the other 42.7% consists of labor. Contractor has been encouraged to look for increased opportunities for SWMBE participation throughout the life of this contract. Additional Comments: J.F. Ahern sent invitations to bid to 18 SWMBE firms in the insulation, concrete, electrical and painting categories - (6) firms bid, (6) decided not to bid and (6) were unresponsive. For the (6) firms that bid, there were (4) that submitted bids too high. *Please note: Mechanical Inc. did not provide SWMBE or subcontracting totals in their bid. AWARDEE INFORMATION Company: Contact Person: Phone Number: Address: J.F. Ahern Co. Clerical Department (920) mcdadmin@jfahern.com EEO DATA Local or National Office? Local Total # of Employees 1,347 Total % Total % Minorities % Females % African American % African American 1 0.1% Asian 3 0.2% Asian 0 0.0% Hispanic % Hispanic 2 0.1% Native American 8 0.6% Native American 1 0.1% Labor Market Availability - Minorities 20.0% Labor Market Availability - Females 48.0% 12/22/ J02013C02

20 Item 2 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Operations Committee RELATING TO: Award of Contract J04050C01, Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, and Approve Changes in Total Project Costs SUMMARY: The Commission is requested to award and to direct the Executive Director to execute on behalf of the District Contract J04050C01, Jones Island Water Reclamation Facility (JIWRF) Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, to J.F. Ahern Co. in the amount of $2,781,000. J.F. Ahern Co. was the lowest responsible, responsive bidder among three bids received. Further, the Commission is requested to decrease the total project cost (TPC) for Project J04050, Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, by $1,356,561 for an amended TPC of $3,863,357 and to make a corresponding change to the TPC for Project M99001, Allowance for Cost and Schedule Changes. The JIWRF Dewatering and Drying (D&D) Facility has been in service since The D&D Facility converts sludge to Milorganite product. The Milorganite production process includes 12 rotary sludge dryers used to heat-dry dewatered biosolids, producing Milorganite. The dried biosolids are transported from the dryers to other processes within the D&D Facility by conveyors. The conveyors are experiencing various degrees of wear, which leads to breakdown of the equipment. This condition results in inefficient and unreliable biosolids conveyance equipment and reduced Milorganite production. To ensure that the D&D Facility continues to process biosolids and create Milorganite, the District has been developing and implementing multiple projects to replace these conveyors. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER OP_Award_J04050_DryerFeedDischargeFeed ScrewReplace_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

21 SUMMARY (Cont d) Award of Contract J04050C01, Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, and Approve Changes in Total Project Costs The Dryer Feed and Discharge Screw Conveyor Replacement Project will replace Dryer Feed Mixer Screw Conveyors, Dryer Feed Screw Conveyors, and Dryer Discharge Screw Conveyors. Each screw conveyor transports Milorganite either to or from each of the 12 dryers. Each existing screw conveyor has reached or is beyond its 20-year service life. The scope of this contract includes removing and replacing components associated with each of the 12 dryers in the D&D Facility including: Replace 12 Feed Hoppers above the Dryer Feed Mixing Screw Conveyors. Replace 10 Dryer Feed Mixing Screw Conveyors. Replace augers, bearings, motors, and drive assemblies in six Dryer Feed Screw Conveyors. Remove and replace 10 Dryer Discharge Screw Conveyors including discharge gates, emergency discharge gates, and inlet chutes. The contract duration is approximately two years. The low bid received by the District is less than budgeted and staff requests to reduce the TPC accordingly. Consistent with the Agreement for Management, Operations and Maintenance Services between the District and Veolia Water Milwaukee, LLC, (VWM) VWM will make a $260,000 contribution to the District for this project. 2

22 RESOLUTION Award of Contract J04050C01, Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, and Approve Changes in Total Project Costs RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that Contract J04050C01, Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, is awarded to J.F. Ahern Co. in the amount of $2,781,000, and that the Executive Director is directed to execute a contract on behalf of the District. FURTHER RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the total project cost for Project J04050, Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, is decreased by $1,356,561 for an amended total project cost of $3,863,357, and that a corresponding change is made to the total project cost for Project M99001, Allowance for Cost and Schedule Changes. 3

23 Capital Budget Fiscal Note Total Project Cost RELATING TO: Award of Contract J04050C01, Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, and Approve Changes in Total Project Costs Capital Project Number(s) J04050-Dryer Feed and Discharge Screw Replacement Impact of Requested Action on Total Project Cost: Increase X Decrease New Project No Change Total Project Cost Analysis Project Costs Adopted 2018 Total Project Cost $5,219,918 Previously Approved Changes $0 Approved Total Project Cost $5,219,918 Requested Total Project Cost $3,863,357 Requested (Increase)/Decrease $1,356,561 Action to be taken to Long-Range Financing Plan to address Total Project Cost change Transfer from Allowance for Cost and Schedule Changes Transfer from another project (specify in comments) Delay Project(s) (specify in comments) Delete Project(s) (specify in comments) Other x Transfer to Allowance for Cost and Schedule Changes Comments The decrease in total project cost reflects actual bids received. Budget Review by: Date: Theresa Zwieg 12/31/2017

24 Award of Contract J04050C01, Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project, and Approve Changes in Total Project Costs Procurement & S/W/MBE Summary Information Contract # BID SUMMARY Bid Opening Date: 10/27/2017 J04050C01 Total SWMBE Local # of Bids # of Responsive Bids Cost Center: Jones Island Water Reclamation Facility Dryer Feed and Discharge Feed Screw Conveyor Replacement Project ENG Bidders Price Responsive? Responsible? % Sub % SWMBE J.F. Ahern Co., Inc. Fond du Lac, WI Marshall Erecting, Inc. Milwaukee, WI Price Erecting Co., Inc. Milwaukee, WI (WBE) $2,781, Responsive Responsible 8.3% 5.5% $3,250, Responsive Responsible Not provided 6.7% $4,632, Responsive Responsible 17.2% 98.3% SUBCONTRACTOR INFORMATION Type Subcontractor Name Type of Work % Amount SBE Mill Equipment Chutes / Equipment Burlington, WI Start-up 4.7% $131, WBE Porta Painting Waukesha, WI Painting 0.7% $20, Non-SWMBE Pieper Electric New Berlin, WI Electrical 2.9% $79, ECONOMIC DEVELOPMENT ELEMENTS Workforce Requirements Sanitary Sewer Service Area (SSSA) Employment: 45% Target Area (TA) Employment: 20% # Apprentices Required: 4 12/22/ J04050C01

25 OUTREACH INFORMATION The Procurement team performed the following outreach: advertised in the Daily Reporter; sent an notification to all registered firms in the Construction category; sent targeted s to 33 S/W/MBE firms specializing in electrical work, mechanical work, metalwork, and painting; and notified the various local chambers of commerce. The bid opportunity is also publicly accessible from the MMSD website and Quest CDN. Quest CDN also performs outreach to its users when a bid is posted. S/W/MBE Planholders: Energenecs, Inc.; Mill Equipment; Price Erecting Co., Inc.; Thomas A. Mason Co., Inc. If no or low S/W/MBE participation, explain why: Approximately 80% of the contract is equipment and material purchases, which leaves limited opportunities for S/W/MBE participation. However, J.F. Ahern made good faith efforts to maximize S/W/MBE participation where possible, including advertising in the Daily Reporter and soliciting bids from 17 S/W/MBE firms for demolition, electrical, and painting work. Of the 17 S/W/MBE firms solicited, only 4 firms submitted a bid. Additional Comments: n/a AWARDEE INFORMATION Company: Contact Person: Phone Number: Address: J.F. Ahern Co. James Jarvis (920) jjarvis@ahern.com EEO DATA Local or National Office? National Total # of Employees 1,347 Total % Total % Minorities % Females % African American % African American 1 0.1% Asian 3 0.2% Asian 0 0.0% Hispanic % Hispanic 2 0.1% Native American 8 0.6% Native American 1 0.1% Labor Market Availability - Minorities 20.0% Labor Market Availability - Females 48.0% 12/22/ J04050C01

26 Item 3 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Operations Committee RELATING TO: Amendment No.1, Purchase Order No. 9382, Material Capital Repair or Replacement No. 973, South Shore Water Reclamation Facility Effluent Pump #1 Repairs SUMMARY: The Commission is requested to authorize the Executive Director to execute Amendment No. 1 to Purchase Order No. 9382, Material Capital Repair or Replacement (MCRR) No. 973, South Shore Water Reclamation Facility (SSWRF) Effluent Pump #1 Repairs, with Veolia Water Milwaukee, LLC, (VWM) in an amount not to exceed $47,069. With high lake levels and during high flow conditions, it is necessary to operate effluent pumps at SSWRF to discharge treated effluent to Lake Michigan. Five 75-million-gallon-per-day (MGD) effluent pumps are normally available to meet the plant treatment capacity of 300 MGD, with one pump being redundant. If one pump is out of service, there is no redundancy in the effluent pumping system, and, if more than one pump is out of service, the treatment capacity of SSWRF is reduced. Effluent Pump #1 is 31 years old, and wear of several of its components is causing the pump to vibrate excessively. It is believed that the pump has a reduced pumping capacity, and it could fail if continued to operate with excessive vibrations. The purpose of this project is to repair the worn pump components to restore the pump to its design capacity and to prevent further damage to the pump. Having full functionality of Effluent Pump #1 will maintain SSWRF s effluent pump system design capacity and redundancy. VWM competitively bid the original scope of work, which consisted of recoating pump internal surfaces, repairing the impeller, gear drive, and motor, and replacing oil, seals, and bearings. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER OP_Auth_Purchase_MCRR973_EffluentPump1_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

27 SUMMARY (Cont d) Amendment No.1, Purchase Order No. 9382, Material Capital Repair or Replacement No. 973 South Shore Water Reclamation Facility Effluent Pump #1 Repairs Butters Fetting Co. (Butters) was the lowest responsible and responsive bidder, with three bids received. The District issued the original purchase order to VWM, which is responsible for contracting, managing, and overseeing the construction contract with Butters. Butters removed and disassembled the pump to execute the original repairs. After disassembly, additional deficiencies were identified and subsequently reviewed by District staff and VWM. These deficiencies include additional corrosion beyond that originally identified, a worn bearing journal, and a bent line shaft. Staff recommends performing additional repairs to address the deficiencies identified. This includes welding corroded areas, installing a new stainless steel bowl liner, reinforcing bearing bores and journals, and straightening the line shaft. Butters submitted a quote for the proposed additional scope of work. District and VWM staff reviewed this quote and found it fair and reasonable. PURCHASE ORDER COST CHANGES PURCHASE ORDER AMOUNT AUTHORIZED BY Original Amendment No. 1 $106,105 Executive Director $47,069 Request of Commission TOTAL $153,174 Consistent with the Agreement for Management, Operations, and Maintenance Services between the District and VWM, VWM will make a $10,000 contribution to the District for this MCRR. 2

28 RESOLUTION Amendment No.1, Purchase Order No. 9382, Material Capital Repair or Replacement No. 973, South Shore Water Reclamation Facility Effluent Pump #1 Repairs RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director is authorized to execute Amendment No. 1 to Purchase Order No. 9382, Material Capital Repair or Replacement No. 973, South Shore Water Reclamation Facility Effluent Pump #1 Repairs, with Veolia Water Milwaukee, LLC, in an amount not to exceed $47,069. 3

29 Capital Budget Fiscal Note Total Project Cost RELATING TO: Amendment No.1, Purchase Order No. 9382, Material Capital Repair or Replacement No. 973, South Shore Water Reclamation Facility Effluent Pump #1 Repairs Capital Project Number(s) S SS Rolling Stock & Other Equipment Impact of Requested Action on Total Project Cost: Increase Decrease New Project X No Change Total Project Cost Analysis Project Costs Adopted 2018 Total Project Cost $3,820,055 Previously Approved Changes $0 Approved Total Project Cost $3,820,055 Requested Total Project Cost n/a Requested (Increase)/Decrease $0 Action to be taken to Long-Range Financing Plan to address Total Project Cost change Transfer from Allowance for Cost and Schedule Changes Transfer from another project (specify in comments) Delay Project(s) (specify in comments) Delete Project(s) (specify in comments) Other Transfer to Allowance for Cost and Schedule Changes Comments The requested expenditures for the contract amendment are for additional rehabilitation work for effluent pump. Budget Review by: Date: Theresa Zwieg 11/30/2017

30 Item 5 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Operations Committee RELATING TO: Award of Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement SUMMARY: The Commission is requested to authorize the Executive Director to execute Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility (JIWRF) High Level Screw Pump Number (No.) 4 Replacement, with J.F. Ahern Co. (Ahern) in the amount of $401,976. Ahern was the lowest responsible, responsive bidder between two bids received. The JIWRF High Level Screw Pump No. 4 is one of five high level screw pumps located in the Preliminary Treatment Facility (Building 203), which lift combined low level and high level raw sewage to the screening facility. High Level Screw Pump No. 4 was installed in The screw pump flights (which carry the sewage) have worn thinly, and portions of the flights are missing due to wear. The torque tube onto which the flights are welded has also worn thinly, and some holes exist in the tube due to wear. This results in decreased pumping capacity and efficiency. The contract was advertised with a base bid to repair the screw pump and an alternative bid to replace the screw pump with a new one. Below are the bid results. Bidder Base Bid (repair) Alternate (replace) J.F. Ahern Co. No bid $401,976 Doral Corporation $950,000 $500,000 Staff recommends awarding the contract to Ahern using the alternate bid (replacement). This will provide the District with a new screw pump with 20 years of useful service life to ensure reliable operation. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER OP_Award_J01020C01_HL_Screw_Pump4_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

31 SUMMARY (Cont d) Award of Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement This contract scope includes: Replacing the existing screw pump, along with upper and lower bearings; Removing and performing regular maintenance on the existing gear reducer; Repairing existing flow deflector plates; Connecting, aligning, and balancing the existing motor, existing gear reducer, and new screw pump; and Installing the existing screw covers. The contract duration is 200 days. Consistent with the Agreement for Management, Operations, and Maintenance Services between the District and Veolia Water Milwaukee (VWM), VWM will make a $10,000 contribution to the District for this project. 2

32 RESOLUTION Award of Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director is authorized to execute Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement, with J.F. Ahern Co. in the amount of $401,976. 3

33 Capital Budget Fiscal Note Total Project Cost RELATING TO: Award of Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement Capital Project Number(s) J JI Capital Equipment Rehabilitation/Replacement Impact of Requested Action on Total Project Cost: Increase Decrease New Project X No Change Total Project Cost Analysis Project Costs Adopted 2018 Total Project Cost $8,008,000 Previously Approved Changes $0 Approved Total Project Cost $8,008,000 Requested Total Project Cost n/a Requested (Increase)/Decrease $0 Action to be taken to Long-Range Financing Plan to address Total Project Cost change Transfer from Allowance for Cost and Schedule Changes Transfer from another project (specify in comments) Delay Project(s) (specify in comments) Delete Project(s) (specify in comments) Other Transfer to Allowance for Cost and Schedule Changes Comments The requested expenditures for this contract include approximately $16,000 in repair work that is allocated to the O&M budget. Budget Review by: Date: Theresa Zwieg 12/6/2017

34 O&M Budget Fiscal Note RELATING TO: Award of Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement Cost Center: Line Item: OCC 671 Line Item Impact 2018 Original Budget Carryovers or Transfers Adjusted Budget Estimated Annual Expenditure including Request Anticipated Year End Balance Actual Year to Date Expenditures Through 12/1/17 $1,370,875 $0 $1,370,875 $1,370,875 $0 NA For unfavorable Year End Balance, identify funding source: Absorbed within the Division Other Division Unallocated Reserve Anticipated Expenditure Timing Current Year (2018) Subsequent Total Cost Requested Expenditures $16,000 $0 $16,000 Anticipated Savings/Revenues $0 $0 $0 Net Fiscal Impact $16,000 $0 $16,000 Comments: The requested expenditures are the O&M repair portions of a larger contract for the screw replacement that is to be funded via the capital budget. Budget Review by: Date Theresa Zwieg 12/1/2017

35 Procurement & S/W/MBE Summary Information Contract # J06075C02 Cost Center: OCC Award of Contract J06075C02 (bid as J01020C01), Jones Island Water Reclamation Facility High Level Screw Pump Number 4 Replacement BID SUMMARY Bid Opening Date: 11/20/2017 Total SWMBE Local # of Bids # of Responsive Bids Bidders Price Responsive? Responsible? % Sub % SWMBE J.F. Ahern Co. Fond du Lac, WI Doral Corporation Milwaukee, WI $401, Responsive Responsible 1.9% 1.9% $500, Responsive Responsible 2.0% 2.0% SUBCONTRACTOR INFORMATION Type Subcontractor Name Type of Work % Amount MBE Hurt Electric Menomonee Falls, WI Electrical Work 0.4% $1, MBE Thomas A. Mason Co. Inc. Milwaukee, WI Painting 1.5% $5, ECONOMIC DEVELOPMENT ELEMENTS Workforce Requirements Sanitary Sewer Service Area (SSSA) Employment: 45% Target Area (TA) Employment: 20% # Apprentices Required: 0 12/27/ J06075C02 (bid as J01020C01)

36 OUTREACH INFORMATION The Procurement team performed the following outreach: advertised in the Daily Reporter, sent an notification to all registered firms in the Construction/General Contracting category, and sent targeted s to 28 SWMBE firms. The bid opportunity is also publicly accessible from the MMSD website and Quest CDN. Quest CDN also performs outreach to its users when a bid is posted. S/W/MBE Planholders: Pro-Equipment, Thomas A. Mason Co. Inc, Stack Bros. Mechanical Contractor If no or low S/W/MBE participation, explain why: Limited SWMBE participation due to 87% of the total contract value being assigned to material (81%) and equipment (6%) with the remainder 13% assigned to labor. Additional Comments: J.F. Ahern sent invitations to bid to 13 SWMBE firms in the electrical and painting categories - (2) firms bid, (8) decided not to bid and (3) were unresponsive. AWARDEE INFORMATION Company: Contact Person: Phone Number: Address: J.F. Ahern Co. Clerical Department (920) mcdadmin@jfahern.com EEO DATA Local or National Office? Local Total # of Employees 1,347 Total % Total % Minorities % Females % African American % African American 1 0.1% Asian 3 0.2% Asian 0 0.0% Hispanic % Hispanic 2 0.1% Native American 8 0.6% Native American 1 0.1% Labor Market Availability - Minorities 20.0% Labor Market Availability - Females 48.0% 12/27/ J06075C02 (bid as J01020C01)

37 Item 6 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Operations Committee RELATING TO: Award of Contract M10004E01, District Engineering Services Private Property Inflow and Infiltration Reduction Project SUMMARY: The Commission is requested to authorize and to direct the Executive Director to execute on behalf of the District Contract M10004E01 for District Engineering Services Private Property Inflow and Infiltration (PPI/I) Reduction Project with Brown and Caldwell in an amount not to exceed $1,424,000. Brown and Caldwell was the highest scoring proposer based on a qualifications-based selection method between two proposals received. In February 2011, the Commission authorized the PPI/I Reduction Program to reduce flows in the District collection system and reduce the risk of basement backups through mitigation of wet weather-induced sanitary sewer system inflow and infiltration (I/I) from private property sources. In support of the 28 satellite municipalities pursuing PPI/I reduction projects, the District also procured contracts for investigative, engineering, and public outreach services for District and municipal use. As the current engineering contract expires, two requests for proposals were issued in From experience in administration of the current contract and through feedback from the municipalities, the contract was divided into a contract for District engineering services and a contract for municipal engineering services. This contract provides PPI/I Program-related engineering services primarily for the District. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER OP_Approval_ M10004E01_District_Engineering_Services_PPII_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

38 BACKGROUND Award of Contract M10004E01, District Engineering Services Private Property Inflow and Infiltration Reduction Project Engineering Contract M03063E02 was authorized by the Commission on November 15, 2010, to support the District and the municipalities in the implementation and execution of the PPI/I Reduction Program. The benefits of having a central District-procured contract for PPI/I engineering services are expedited implementation of projects, reduced costs due to economies of scale, and consistent project completion. Of the $3 million amended value of the original contract M03063E02, $1.5 million was used by 12 municipalities for private property planning, investigative, and construction-related engineering services. The District used $1.5 million of the contract value for project performance evaluations, assembly of standard operating procedures, technical research, and project management. The District also supported municipalities by providing initial local policy development and initial work plan assembly delivered through contract M03063E02 at no cost to the municipalities. Contract M10004E01 focuses on engineering services provided to the District in support of the PPI/I Program. Firms responding to the request for proposals were evaluated on skills specific to private property with experience on a national and global scale serving clients similar in characteristics and scale to the District. The evaluation team included two municipal members of the Technical Advisory Team and four District staff members. Contract M10004E01 will be available for municipal use if the need arises for the highlevel engineering services provided through this contract. This component is anticipated to be a minor part of the total contract value. Contract M10004E01 will be administered on a task order basis with sub-agreements defining scope and cost as engineering assignments arise. In summary, contract M10004E01 is anticipated to be used for continued monitoring and evaluation of completed projects, planning and design for pilot projects, advising on technical issues, research on emerging technologies, policy advisement, support of District-led public outreach efforts, and coordination with the engineering firm awarded the municipal engineering contract M10004E02. Major tasks for the contract are as follows: A. Standard Processes and Procedure Standardization B. Ongoing Monthly Project Management C. Policy and Program Development D. Technical Advising E. Flow Monitoring, Hydraulic Modeling, and Evaluation F. Design Services G. Public Communication and Education H. Surveying I. Coordination with Municipal Work Completed Under Separate Contract M10004E02 2

39 BACKGROUND (Cont d) Award of Contract M10004E01, District Engineering Services Private Property Inflow and Infiltration Reduction Project Contract M10004E02 for municipal engineering services is presented to the Commission for award under a separate document. Coordination tasks are included in both contracts for continuity of work, administration, and data collection. For administrative efficiency, the balance of the current PPI/I public outreach Contract M03063E03 ($124,000) held by Brown and Caldwell has been incorporated into this contract. The current public outreach contract M03063E03 will be terminated. Contract M10004E01 is included in the total project cost of Project M10004 as approved through the 2018 budget. This award does not change the total project cost. The duration for contract M10004E01 is estimated to be five years contingent on municipal and District use of the contract. 3

40 RESOLUTION Award of Contract M10004E01, District Engineering Services Private Property Inflow and Infiltration Reduction Project RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director is authorized and directed to execute Contract M10004E01 for District Engineering Services-Private Property Inflow and Infiltration Reduction Project with Brown and Caldwell in an amount not to exceed $1,424,000. 4

41 Capital Budget Fiscal Note Total Project Cost RELATING TO: Award of Contract M10004E01, District Engineering Services-Private Property Inflow and Infiltration Reduction Project Capital Project Number(s) Impact of Requested Action on Total Project Cost: M10004 Increase Decrease New Project X No Change Total Project Cost Analysis Project Costs Adopted 2018 Total Project Cost $4,522,508 Previously Approved Changes $0 Approved Total Project Cost $4,522,508 Requested Total Project Cost n/a Requested (Increase)/Decrease $0 Action to be taken to Long-Range Financing Plan to address Total Project Cost change Transfer from Allowance for Cost and Schedule Changes Transfer from another project (specify in comments) Delay Project(s) (specify in comments) Delete Project(s) (specify in comments) Other Transfer to Allowance for Cost and Schedule Changes Comments The request is not-to-exceed $1,424,000 over five years. Budget Review by: Date: Christine Durkin 12/6/2017

42 Award of Contract M10004E01, District Engineering Services-Private Property Inflow and Infiltration Reduction Project Procurement & S/W/MBE Summary Information Contract # M10004E01 Cost Center: District Engineering Services-Private Property Inflow and Infiltration Reduction Project PRS PROPOSAL SUMMARY Proposal Receipt Date: 10/24/2017 Total # of Proposals 2 # of Acceptable Proposals 2 SWMBE Local Proposals (listed by rank) Brown and Caldwell Milwaukee, WI Stantec Consulting Services Inc. Mequon, WI Negotiated Price Submitted Price $1,424, $1,424, NA $1,424, Acceptable? % Sub % SWMBE Acceptable 20.0% 20.0% Acceptable 20.0% 20.0% Compensation packages for proposals rated "Conditionally Acceptable" and "Unacceptable" are not opened. SUBCONSULTANT INFORMATION Type Subconsultant Name Type of Work % Amount MBE Oneida Total Integrated Enterprises Milwaukee, WI Municipal work coordination, flow monitoring, modeling and evaluation TBD TBD SBE Stormwater Solutions Engineering Milwaukee, WI Technical advising, public communication and education TBD TBD SBE John Kittelson Consulting, Inc. Milwaukee, WI Technical advising, design services TBD TBD 12/27/ M10004E01

43 SBE Lubenow, Gobster, and Dominiak & Assoc., Inc. Mequon, WI Technical advising, municipal work coordination TBD TBD Penne Wilson Consulting WBE Technical editing TBD TBD Sturgeon Bay, WI Non-SWMBE R.A. Smith Brookfield, WI Flow monitoring, municipal coordination TBD TBD ECONOMIC DEVELOPMENT ELEMENTS Local Office Preference? Y Mentor Protégé? N/A OUTREACH INFORMATION The Procurement team performed the following outreach: advertised in the Daily Reporter; sent an notification to all registered firms in the various engineering disciplines (civil, environmental, mechanical); surveying and monitoring services sent targeted s to 250 potential proposers; sent targeted s to 115 SWMBE (same categories previously mentioned) firms; and notified the various local chambers of commerce. The proposal opportunity is also publicly accessible from the MMSD website and Bonfire, the portal used to post RFPs. Bonfire also performs outreach to its users when an RFP is posted. S/W/MBE Document Takers: K. Singh & Associates, Inc., Brandon Koltz Water & Environmental Consulting LLC, Stormwater Solutions Engineering, LLC, Kaletech LLC, Oneida Total Integrated Enterprises (OTIE), Globetrotters Engineering Corporation, Kapur and Associates, Bay Ridge Consulting, Applied Science, Inc., M Squared Engineering, Stony Point Hydrology LLC, Himalayan Consultants, LLC, TRSear Engineering, LLC If no or low S/W/MBE participation, explain why: N/A Additional Comments: Brown & Caldwell will meet the District's SWMBE participation goals of 20%. Due to the nature of this project, however, it is unknown at this time the exact dollar participation among the list of sub-consultant firms. 12/27/ M10004E01

44 AWARDEE INFORMATION Company: Contact Person: Phone Number: Address: Brown & Caldwell Andrew Lukas EEO DATA Local or National Office? National Total # of Employees 1516 Total % Total % Minorities % Females % African American % African American % Asian % Asian % Hispanic % Hispanic % Native American 4 0.3% Native American 1 0.1% Labor Market Availability - Minorities 17.0% Labor Market Availability - Females 46.8% PRIME PERFORMANCE HISTORY - S/W/MBE COMPLIANCE 12/27/ M10004E01

45 Item 7 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Operations Committee RELATING TO: Award of Contract M10004E02, Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project SUMMARY: The Commission is requested to authorize and to direct the Executive Director to execute on behalf of the District Contract M10004E02 for Municipal Engineering and Project Services Private Property Inflow and Infiltration (PPI/I) Reduction Project with Oneida Total Integrated Enterprises, LLC, (OTIE) in an amount not to exceed $600,000. OTIE was the highest scoring proposer, based on a qualifications-based selection method, among two proposals received. In February 2011, the Commission authorized the PPI/I Reduction Program to reduce flows in the District collection system and reduce the risk of basement backups through mitigation of wet weather induced sanitary sewer system inflow and infiltration (I/I) from private property sources. In support of the 28 satellite municipalities in pursuing PPI/I reduction projects, the District also procured contracts for investigative, engineering, and public outreach services for District and municipality use. As the current engineering contract expires, two requests for proposals were issued in From experience in administration of the current contract and through feedback from the municipalities, the contract was divided into a contract for District engineering services and a contract for municipal engineering services. This contract provides PPI/I Program-related engineering services primarily for the municipalities. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER OP_Approval_M10004E02_Municipal_Engineering_Services_PPII_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

46 BACKGROUND Award of Contract M10004E02, Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project Engineering contract M03063E02 was authorized by the Commission on November 15, 2010, to support the District and the municipalities in the implementation and execution of the PPI/I Reduction Program. The benefits of having a central District-procured contract for PPI/I engineering services are expedited implementation of projects, reduced costs due to economies of scale, and consistent project completion. Of the $3 million amended value of the original Contract M03063E02, $1.5 million was used by 12 municipalities for private property planning, investigative, and construction-related engineering services. Contract M10004E02 focuses on engineering services provided to the municipalities in support of the PPI/I Program. When submitting a work plan to the District for proposed PPI/I work, municipalities may choose to use the District Contract M10004E02 to complete the engineering scope of work. When this occurs, the incurred expenses will be invoiced to the District and subsequently deducted directly from the individual municipality s PPI/I allocation. Municipalities may also procure PPI/I engineering services independent of the District contract or complete the engineering with internal staff and submit a request for reimbursement. Firms responding to the M10004E02 request for proposals were evaluated on skills specific to private property with local and/or regional experience. The evaluation team included two municipal members of the Technical Advisory Team and four District staff members. Contract M10004E02 will be available for District use if the need arises for field and construction-related services provided through this contract. This component is anticipated to be a minor part of the total contract value. Contract M10004E02 will be administered on a task order basis with municipality-specific sub-agreements defining scope and cost as assignments arise. In summary, contract M10004E02 is anticipated to be used for municipal project-level investigative work, survey, planning, design, engineering services during construction, and coordination with the engineering firm awarded the separate but related District engineering contract M10004E01. Major tasks for the contract are as follows: A. Standard Processes and Procedure Standardization B. Ongoing Monthly Project Management C. Policy and Program Development D. Technical Advising E. Flow Monitoring, Hydraulic Modeling, and Evaluation F. Design Services G. Public Communication and Education H. Surveying I. Investigative Field Services J. Engineering and Project Services during Construction 2

47 BACKGROUND (Cont d) Award of Contract M10004E02, Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project Contract M10004E01 for District engineering services is presented to the Commission for award under a separate document. Coordination tasks are included in both contracts for continuity of work, administration, and data collection. Contract M10004E02 is included in the total project cost of Project M10003 and Project M10004 as approved through the 2018 budget. This award does not change the total project cost. The duration for contract M10004E02 is estimated to be five years, contingent on municipal and District use of the contract. 3

48 RESOLUTION Award of Contract M10004E02, Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director is authorized and directed to execute Contract M10004E02 for Municipal Engineering and Project Services Private Property Inflow and Infiltration Reduction Project with Oneida Total Integrated Enterprises, LLC, in an amount not to exceed $600,000. 4

49 Capital Budget Fiscal Note Total Project Cost RELATING TO: Award of Contract M10004E02, Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project Capital Project Number(s) Impact of Requested Action on Total Project Cost: M10004 Increase Decrease New Project X No Change Total Project Cost Analysis Project Costs Adopted 2018 Total Project Cost $4,522,508 Previously Approved Changes $0 Approved Total Project Cost $4,522,508 Requested Total Project Cost n/a Requested (Increase)/Decrease $0 Action to be taken to Long-Range Financing Plan to address Total Project Cost change Transfer from Allowance for Cost and Schedule Changes Transfer from another project (specify in comments) Delay Project(s) (specify in comments) Delete Project(s) (specify in comments) Other Transfer to Allowance for Cost and Schedule Changes Comments The requested contract is for five years and not-to-exceed $600,000. Budget Review by: Date: Christine Durkin 12/11/2017

50 Award of Contract M10004E02, Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project Procurement & S/W/MBE Summary Information Contract # M10004E02 Cost Center: PRS Municipal Engineering and Project Services-Private Property Inflow and Infiltration Reduction Project PROPOSAL SUMMARY Proposal Receipt Date: 10/24/2017 Total # of Proposals 2 # of Acceptable Proposals 2 SWMBE Local Proposals (listed by rank) Oneida Total Integrated Enterprises (OTIE) Milwaukee, WI (MBE) Negotiated Price Submitted Price $600, $600, Acceptable? % Sub % SWMBE Acceptable 19.0% 81.0% Kapur & Associates Milwaukee, WI (MBE) - Conditionally - Acceptable - - Compensation packages for proposals rated "Conditionally Acceptable" and "Unacceptable" are not opened. SUBCONSULTANT INFORMATION Type Subconsultant Name Type of Work % Amount Non-SWMBE Brown & Caldwell Milwaukee, WI Engineering services 11.0% $66, Non-SWMBE R.A. Smith Brookfield, WI Engineering services, field inspection 8.0% $48, ECONOMIC DEVELOPMENT ELEMENTS Local Office Preference? Y Mentor Protégé? N/A 12/27/ M10004E02

51 OUTREACH INFORMATION The Procurement team performed the following outreach: advertised in the Daily Reporter; sent an notification to all registered firms in the various engineering disciplines (civil, environmental, mechanical); project management, surveying and monitoring services were sent targeted s to 250 potential proposers; sent targeted s to 115 SWMBE (same categories previously mentioned) firms; and notified the various local chambers of commerce. The proposal opportunity is also publicly accessible from the MMSD website and Bonfire, the portal used to post RFPs. Bonfire also performs outreach to its users when an RFP is p o s t e d. S/W/MBE Document Takers: K. Singh & Associates, Inc., Brandon Koltz Water & Environmental Consulting LLC, Stormwater Solutions Engineering, LLC, Kaletech LLC, Oneida Total Integrated Enterprises (OTIE), Globetrotters Engineering Corporation, Kapur and Associates, Bay Ridge Consulting, Applied Science, Inc., M Squared Engineering, Stony Point Hydrology LLC, Himalayan Consultants, LLC, TRSear Engineering, LLC Superior Engineering If no or low S/W/MBE participation, explain why: N/A Additional Comments: N/A AWARDEE INFORMATION Company: Contact Person: Phone Number: Address: Oneida Total Integrated Enterprises, LLC Cyndi Shaw (414) CShaw@oescgroup.com EEO DATA Local or National Office? Local Total # of Employees 284 Total % Total % Minorities % Females % African American 9 3.2% African American 3 1.1% Asian % Asian 8 2.8% Hispanic % Hispanic 6 2.1% Native American 7 2.5% Native American 1 0.4% Labor Market Availability - Minorities 20.0% Labor Market Availability - Females 48.0% 12/27/ M10004E02

52 PRIME PERFORMANCE HISTORY - S/W/MBE COMPLIANCE 12/27/ M10004E02

53 Item 8 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Policy, Finance, and Personnel Committee RELATING TO: Authorization to Execute a Research Contract between the University of Wisconsin-Milwaukee School of Freshwater Sciences and the Milwaukee Metropolitan Sewerage District for Determining Sediment and Bacterial Sources and Linkages to Inform and Evaluate Total Maximum Daily Load Implementation SUMMARY: The Commission is requested to authorize and to direct the Executive Director to execute a two-year research contract with the University of Wisconsin-Milwaukee School of Freshwater Sciences (SFS) for determining sediment and bacterial sources and linkages to inform and evaluate total maximum daily load (TMDL) implementation, Contract P-2738, in an amount not to exceed $295,341. The agreement would become effective on February 1, 2018 and expire on February 29, This project was selected as a result of a competitive request for proposal, M03091P04 Open Request for Research Proposals, by a District review team. The results of this research will allow the District to understand sources of total suspended solids and dissolved organic matter in sediment plumes following rain events while empirically characterizing the composition of the plumes. The District can examine the association of bacterial communities and individual taxa with the composition and source of material in sediment plumes in the estuary and lower Milwaukee River. Furthermore, the District will have an assessment of upstream sources of total suspended solids (TSS) and bacteria and be able to compare it with downstream sources. Finally, the District will understand the persistence of the plume components in the nearshore and at beaches. This work is well aligned with needs identified by technical experts of the Southeastern Wisconsin Watersheds Trust s Science Committee and the Wisconsin Department of Natural Resources Area of Concern Technical Team that is working towards restoring designated uses of area waterbodies. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER PFP_Determining_Sediment_And_Bacterial_Sources_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

54 BACKGROUND Authorization to Execute a Research Contract between the University of Wisconsin- Milwaukee School of Freshwater Sciences and the Milwaukee Metropolitan Sewerage District for Determining Sediment and Bacterial Sources and Linkages to Inform and Evaluate Total Maximum Daily Load Implementation Prior work in the McLellan lab at SFS has demonstrated that bacteria are on fine particles (<10 µm) or are free floating in the Milwaukee estuary and may be uncoupled from sediment once they enter Lake Michigan. The District and other stakeholders need more information on how sources of TSS and pathogens are connected in upstream sources, so water managers can implement practices with dual benefits and tailor mitigation strategies that address both pollutants that are of concern in the Milwaukee Basin. More information is needed on how transport and fate of TSS and pathogens differ, what water quality indicators are the most effective in tracking microorganisms (bacteria, viruses, and protozoa), and to what extent microorganisms are delivered to beaches and persist in swimming areas. SFS s McLellan lab will build off its prior work to conduct this research. There are a number of purposes this research can serve. This research is critical to TMDL efforts for prioritizing implementation strategies. In urban areas, TSS and pathogens may be derived from different sources (i.e. terrestrial runoff for TSS, leaking laterals for pathogens), but upstream in the watershed TSS and pathogens may be common to a source such as agricultural runoff. This research agreement will offer empirical data to compare with modeled data (quantitative fecal coliform loads, TSS loads under specific conditions), and provide baseline pre-tmdl implementation conditions that can be compared with post-implementation time periods. This work also could improve impact assessments from extreme rain events; results from this study could be coupled to a hydrodynamic model to create a tool for determining when beaches are safe again for swimming and the reach of pollution sources into Lake Michigan. By using cutting-edge genomic and source tracking techniques to assess pollutant loads and water quality in the Great Lakes, this work keeps this region on the forefront of water quality science. 2

55 KEY ISSUES Authorization to Execute a Research Contract between the University of Wisconsin- Milwaukee School of Freshwater Sciences and the Milwaukee Metropolitan Sewerage District for Determining Sediment and Bacterial Sources and Linkages to Inform and Evaluate Total Maximum Daily Load Implementation Large rain events introduce pollution into Milwaukee s waterways from upstream agricultural runoff, stormwater runoff, leaking or illicitly connected sanitary sewage infrastructure, and under extreme rain events, combined sewage overflows. The most visible sign of this pollution is the plume of suspended solids. These solids cause a murky water appearance in the city s rivers and are clearly visible as they disperse into Lake Michigan. While pathogens (i.e. harmful bacteria, viruses, and protozoa) may constitute a public health threat, they are not necessarily correlated to the visible portion of the plume. The lowermost river reaches, estuary, and harbor are a Great Lakes Area of Concern (AOC) due to high levels of sediment (measured as TSS) and fecal coliforms, a proxy for pathogens. AOC s are designated areas under the Great Lakes Water Quality Agreement that show severe environmental degradation and have Remedial Action Plans (RAP) to address degradation. This research agreement will systematically collect high resolution data at sites in the Milwaukee River, estuary, and Lake Michigan to determine the sources, coupling, and timing of sediment and fecal coliform loads as they are released into the harbor and Lake Michigan. This work is relevant to the TMDL effort in the Milwaukee AOC to improve water quality and is recommended under the existing RAP. Understanding sources and potential cobenefits for different mitigation strategies within the TMDL process is critical for ultimately delisting the Milwaukee AOC. The overall goals of this project are to 1) understand the sources of suspended solids (including dissolved organic matter), microbial communities, and pathogens in turbid water plumes entering Lake Michigan through the Milwaukee estuary; 2) understand how bacterial signals and suspended solids are coupled in upstream and downstream sources; and 3) examine how the organic matter and microorganisms originating in the plumes impact beaches and the nearshore in the short-term. 3

56 RESOLUTION Authorization to Execute a Research Contract between the University of Wisconsin- Milwaukee School of Freshwater Sciences and the Milwaukee Metropolitan Sewerage District for Determining Sediment and Bacterial Sources and Linkages to Inform and Evaluate Total Maximum Daily Load Implementation RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director is authorized and directed to execute a two-year research agreement between the University of Wisconsin-Milwaukee School of Freshwater Sciences and the Milwaukee Metropolitan Sewerage District for determining sediment and bacterial sources and linkages to inform and evaluate total maximum daily load implementation, Contract P-2738, in an amount not to exceed $295,341. 4

57 O&M Budget Fiscal Note RELATING TO: Authorization to Execute a Research Contract between the University of Wisconsin-Milwaukee School of Freshwater Sciences and the Milwaukee Metropolitan Sewerage District for Determining Sediment and Bacterial Sources and Linkages to Inform and Evaluate Total Maximum Daily Load Implementation Cost Center: Planning, Research and Sustainability Line Item: 649 Contract Services N.O.C. Line Item Impact 2018 Original Budget Carryovers or Transfers Adjusted Budget Estimated Annual Expenditure including Request Anticipated Year End Balance Actual Year to Date Expenditures Through 12/7 $1,222,000 $0 $1,222,000 $1,222,000 $0 N/A For unfavorable Year End Balance, identify funding source: Absorbed within the Division Other Division Unallocated Reserve Anticipated Expenditure Timing Current Year (2018) Subsequent Total Cost Requested Expenditures $129,950 $165,391 $295,341 Anticipated Savings/Revenues $0 $0 $0 Net Fiscal Impact $129,950 $165,391 $295,341 Comments: The agreement is from February 1, 2018 through February 29, Budget Review by: Date Christine Durkin 12/7/2017

58 Item 9 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Policy, Finance and Personnel Committee RELATING TO: Authorization to Execute an Intergovernmental Cooperation Agreement between the Southeastern Wisconsin Regional Planning Commission and the Milwaukee Metropolitan Sewerage District for a Regional Chloride Impact Study SUMMARY: The Commission is requested to authorize and to direct the Executive Director to execute a four-year intergovernmental cooperation agreement with the Southeastern Wisconsin Regional Planning Commission (SEWRPC) for a regional chloride impact study, Contract P-2737, in an amount not to exceed $170,000. The agreement would become effective on February 1, 2018, and expire on December 31, This is a noncompetitive procurement of government services from SEWRPC, the regional planning authority for Southeastern Wisconsin. SEWRPC has extensive experience working with MMSD on the Water Quality Initiative, the Regional Water Quality Management Plan Update, maintenance of computer models, data curation, and various comprehensive watershed restoration plans. MMSD is a minority funder of this larger project. Other funding sources include SEWRPC ($573,000), the Wisconsin Department of Transportation ($573,000), and the Fund for Lake Michigan ($127,000). Additional funding sources will be solicited for $276,000. If unsuccessful in raising the additional funds, SEWRPC will cover those costs. The total project cost for this four-year study is $1.719 million. This study will provide useful information to enable entities contributing chloride to the environment to better manage the processes making that contribution. Better management of sources of chloride to streams, rivers, inland lakes, and groundwater will ultimately improve the water quality of Lake Michigan tributary streams and rivers, and of the Lake itself, which is a source of water supply for many communities within the basin. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER PFP_Regional_Chloride_Impact_Study_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

59 BACKGROUND Authorization to Execute an Intergovernmental Cooperation Agreement between the Southeastern Wisconsin Regional Planning Commission and the Milwaukee Metropolitan Sewerage District for a Regional Chloride Impact Study Several chloride or specific conductance monitoring studies have been undertaken in portions of the seven-county Southeastern Wisconsin region, but there is no comprehensive study available that quantifies relative chloride contributions to surface water and groundwater resources from multiple sources or that ties anthropogenic activities in specific geographic areas to chloride conditions in groundwater, streams, rivers, and lakes. Without the establishment of those connections between human activities and water resources conditions, under both existing and planned year 2050 conditions, actions to address environmental and infrastructure issues associated with chlorides in the environment cannot be efficiently and effectively targeted. Chloride loads to surface and groundwater resources can potentially come from several significant sources including road salt applied for anti-icing and deicing of public and private roads, sidewalks and parking lots; water softening systems and other sources that discharge to sanitary sewers or private onsite wastewater treatment systems; salt storage areas; large agricultural feed lots; fertilizers; landfills; chemical manufacturing; and food processing. The findings of several studies provide evidence that chloride concentrations have been increasing in surface waters of Southeastern Wisconsin. Increases have been documented through long-term water quality monitoring of streams and rivers. Chloride concentrations from samples collected at various times from spring through fall at water quality monitoring stations along the Milwaukee River during the period 1975 through 2004 and along the Root River during the period 1964 through 2012 indicate strong trends toward increasing concentrations of chloride in the rivers. Chloride concentration data for inland lakes in Southeastern Wisconsin have also indicated an increasing trend in concentrations. Increases in chloride concentrations over time have been documented in other streams and rivers in the region. The findings of a recent United States Geological Survey study suggest that there may be a widespread trend toward increasing chloride concentrations in streams of the northern United States. This study examined 30 sites on 19 streams including sites on the Kinnickinnic, Menomonee, Milwaukee, and Root Rivers within Southeastern Wisconsin. This is important to MMSD, because more waterbodies under MMSD s jurisdiction are being listed as impaired for chlorides, making it increasingly difficult to naturalize streams and promote biodiversity with traditional watercourse work. The findings of this study will help the District better understand opportunities to responsibly use green infrastructure (GI) to capture runoff with high chloride concentrations to promote both stable hydrology and mitigate pollutant loadings. GI can also help prevent chloride present in runoff from reaching the District s water reclamation facilities that are not designed to remove chloride. Findings will help to optimize placing GI to prevent infiltration to shallow aquifers; monitoring data also suggest that chlorides may be accumulating in groundwater that discharges into waterbodies during base-flow conditions. 2

60 RESOLUTION Authorization to Execute an Intergovernmental Cooperation Agreement between the Southeastern Wisconsin Regional Planning Commission and the Milwaukee Metropolitan Sewerage District for a Regional Chloride Impact Study RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the Executive Director is authorized and directed to execute a four-year intergovernmental cooperation agreement between the Southeastern Wisconsin Regional Planning Commission and the Milwaukee Metropolitan Sewerage District for a Regional Chloride Impact Study, Contract P-2737, in an amount not to exceed $170,000. 3

61 O&M Budget Fiscal Note RELATING TO: Authorization to Execute an Intergovernmental Cooperation Agreement between the Southeastern Wisconsin Regional Planning Commission and the Milwaukee Metropolitan Sewerage District for a Regional Chloride Impact Study Cost Center: Planning, Research and Sustainability Line Item: 649 Contract Services N.O.C. Line Item Impact 2018 Original Budget Carryovers or Transfers Adjusted Budget Estimated Annual Expenditure including Request Anticipated Year End Balance Actual Year to Date Expenditures Through 12/11 $1,222,000 $0 $1,222,000 $1,222,000 $0 N/A For unfavorable Year End Balance, identify funding source: Absorbed within the Division Other Division Unallocated Reserve Anticipated Expenditure Timing Current Year (2018) Subsequent Total Cost Requested Expenditures $39,787 $130,213 $170,000 Anticipated Savings/Revenues $0 $0 $0 Net Fiscal Impact $39,787 $130,213 $170,000 Comments: The agreement is effective from February 1, 2018, through December 31, 2021, and is not-to-exceed $170,000. Budget Review by: Date Christine Durkin 12/11/2017

62 Item 10 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Policy, Finance, and Personnel Committee RELATING TO: Adoption of Amendments to MMSD Rules, Chapter 11, Discharge Regulations and Enforcement Procedures, to Allow the Discharge of Noncontact Cooling Water SUMMARY: The Commission is requested to adopt proposed amendments to MMSD Rules, Chapter 11, Discharge Regulations and Enforcement Procedures, as required by Wis. Stat. Sec (1)(c). The amendments would allow the discharge of noncontact cooling water, reverse osmosis concentrate, and condensate to the sewerage system in the separated sewer area and riparian areas of the combined sewer area. On October 23, 2017, the Commission approved public notice and hearing. The public hearing occurred on November 30, and the period for written comments ended December 1. The District received no comments at the hearing or in writing. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER Proposed Amendments PFP_Chapter_13_Amendments_Adoption_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

63 BACKGROUND Adoption of Amendments to MMSD Rules, Chapter 11, Discharge Regulations and Enforcement Procedures, to Allow the Discharge of Noncontact Cooling Water History Currently, the District prohibits the discharge of noncontact cooling water into the sanitary sewer area and into the combined sewer system from riparian locations in the combined sewer area. The District prohibited noncontact cooling water to conserve treatment capacity in the sewerage system for domestic and process wastewater. This prohibition is from the 1980 s, when: (A) the District did not have a wet weather peak flow storage system, (B) the region had more manufacturing, (C) water conservation practices were undeveloped, (D) the District did not have a private property infiltration and inflow reduction program or a green infrastructure program to reduce peak wet weather flows, and (E) phosphorus and other trace pollutants in the noncontact cooling water discharges were not a concern. Also, general permits were available for discharging directly to surface water. Current Conditions Today, the District has a large wet weather peak flow storage system, sewer system monitoring and controls are more extensive and efficient, the District has less manufacturing, water use is more efficient, and the water supply often has a significant amount of added phosphorus. A variety of regulatory initiatives create challenges for discharges to surface water, including concerns regarding phosphorus, arsenic, mercury, temperature, and whole effluent toxicity. Proposed Action In response to these new conditions, rule amendments are proposed to allow the discharge of noncontact cooling water when the risk is low that the new discharge would cause problems within the sewerage system. Goals are to help businesses comply with increasingly complex requirements, support achievement of the Total Maximum Daily Loads for phosphorus being established for local rivers, and use the District s water reclamation facilities to remove pollutants. Attachment 1 shows the proposal amendments. The District will need to coordinate approval of new discharges with local governments to: (A) minimize the risk that the new discharges will cause or exacerbate overflows or basement backups, (B) avoid using capacity allocated for growth, (C) identify any local capacity issues, and (D) implement wet weather protocols to interrupt the discharge, if needed. The District is proposing a process that would include the following elements. 2

64 BACKGROUND (Cont d) Adoption of Amendments to MMSD Rules, Chapter 11, Discharge Regulations and Enforcement Procedures, to Allow the Discharge of Noncontact Cooling Water 1. A facility identifies the average and maximum flow rates and the discharge schedule for the noncontact cooling water it wants to discharge. 2. The facility contacts the local sewer department to determine whether sewer capacity is available. 3. The facility notifies the District of its intent to discharge noncontact cooling water and provides the finding of sufficient capacity from the local government. 4. The District approves the discharge. Based upon findings by the local government, the District may require that the discharge be interrupted during wet weather. Other Types of Discharges In addition to noncontact cooling water, the District currently prohibits reverse osmosis concentrate from water supply purification systems and condensate from steam and compressed air systems. The prohibition applies to the separated sewer area and riparian areas of the combined sewer area. For the reasons described above, the District intends to repeal the prohibition on these discharges. These discharges are less common than noncontact cooling water and volumes are often small; therefore, a special review process is unnecessary. Notice to the District is necessary, and discharges may commence only after receiving approval from the District. User Charges New discharges will be subject to standard sewer user charges from the District and local governments. After the District approves a new discharge, the District will change the water balance used to calculate sewer user charges for existing users. For new users of the District system, the District will require flow data from which sewer user charges will be calculated. Public Engagement District staff discussed this proposal with the District s Technical Advisory Team in May The District provided this proposal by to commercial and industrial users and municipalities in August On October 23, 2017, the Commission approved public notice and hearing. The District provided the public notice to municipal clerks on October 23, The Milwaukee Journal Sentinel published the hearing notice on October 29, The public hearing occurred on November 30, 2017, and the period for written comments ended December 1, The District received one inquiry regarding the intent of the proposed amendments, but no other comments. 3

65 BACKGROUND (Cont d) Adoption of Amendments to MMSD Rules, Chapter 11, Discharge Regulations and Enforcement Procedures, to Allow the Discharge of Noncontact Cooling Water CHANGES SINCE PROPOSAL A review of the diversity of circumstances where discharges may occur has caused an adjustment to how the amendments identify the entity that makes the capacity evaluation. In rare cases, the governmental unit where the user is located might not be the appropriate governmental unit to make the capacity evaluation. For example, a small number of users discharge directly to a District sewer. Also, facilities at the Regional Medical Center may be located on Milwaukee County land, but the relevant governmental unit for the capacity evaluation would be the City of Milwaukee or the City of Wauwatosa. In response to these situations, in sec (2)(a), the last phrase has changed from in which the user is located to that owns the sewer that will receive the discharge. 4

66 RESOLUTION Adoption of Amendments to MMSD Rules, Chapter 11, Discharge Regulations and Enforcement Procedures, to Allow the Discharge of Noncontact Cooling Water RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the amendments to MMSD Rules, Chapter 11, are adopted, as shown in the attachment, and will become effective upon publication. 5

67 Attachment 1 Amendments to MMSD Rules, Chapter Section (10) is amended to read: Prohibited Discharges Users may not discharge to the sewerage system: * * * (10) at any site that is either served by a separate storm water conveyance system or riparian to waters of the state: (a) storm water, surface water, or groundwater, except when a remedial action undertaken according to the requirements of the Department or the U.S. Environmental Protection Agency requires the removal of this type of water and a direct discharge to waters of the state would impose unreasonable costs or delays; (b) roof runoff; or (c) subsurface drainage.; (d) single-pass cooling water, cooling tower blowdown, or reverse osmosis concentrate, if the District finds that a discharge has caused or contributed to an overflow or basement flooding. except as provided in subpar 1 and 2: 1. If a storm sewer is not available, then a user may discharge cooling tower blowdown and reverse osmosis concentrate from December 1 to March 31 and any other period when necessary to protect the public health, welfare, or safety. 2. Users may discharge single-pass cooling water from small-scale bench-top condensers, except as provided in par. (e)(2). (e) from sources constructed after May 1, 2005: 1. condensate from compressed air or process steam systems, and 2. single-pass cooling water from small-scale bench-top condensers; or (f) any other wastewater for which the Department has issued a general WPDES permit; 1

68 2. Section is created to read: Noncontact Cooling Water (1) If a user is served by a combined sewer and not riparian to waters of the state, then the user may discharge noncontact cooling water to the sewerage system, subject to the prohibitions of sec and the limits of sec (2) If a user is served by separated sewers or is riparian to waters of the state, then the user may discharge noncontact cooling water to the sewerage system, subject to the prohibitions of sec and the limits of sec , and according to the following conditions. (a) The user has provided estimates of its average and maximum discharge rates to the governmental unit that owns the sewer that will receive the discharge; (b) The governmental unit has: 1. evaluated sewer capacity, 2. concluded that capacity is likely to be available under all foreseeable conditions or needs to be interrupted during peak flow conditions to reduce the risk of overflows or basement flooding, and 3. provided this finding in writing to the user; (c) The user notifies the District of its intent to discharge noncontact cooling water, provides the finding of sufficient capacity from the governmental unit, and provides updated total facility discharge information to the District, according to MMSD Rules, sec ; and (d) The District notifies the user that the discharge is approved. If a governmental unit has recommended interruption during peak flows, then the approval will identify the conditions when discharge is not allowed. 2

69 Item 11 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Policy, Finance, and Personnel Committee RELATING TO: Revision to Commission Policy , Investment Policy SUMMARY: The Commission is requested to revise Commission Policy , Investment Policy. The District s comprehensive investment policy identifies investment objectives, assigns, responsibility, and addresses the issue of risk inherent in the investment of public funds. The policy provides direction and constraints to the District s investment process. The policy was originally adopted in September 1997 and was last updated in July Staff requests that the Commission revise the current Investment Policy to reflect revision in the following areas: Corporate Bonds Corporate bonds need to be rated in the two highest categories to be eligible for purchase. To add clarity to the policy, staff recommends adding a statement that the two highest ratings (AAA and AA) includes the category of AA-. Selection of Broker/Dealers It is recommended to delete the requirement that brokers/dealers attest in writing that they have received the policy. This requirement is important for the investment advisors but not the broker/dealers. Change to Appendix 2 is recommended to reflect name change. The proposed revisions update the current policy and in no way weaken the controls within the investment policy. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER Redlined Commission Policy & Appendix 2 PFP_Revise_Investment_Policy_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

70 RESOLUTION Revision to Commission Policy , Investment Policy RESOLVED, by the Milwaukee Metropolitan Sewerage Commission, that the attached Commission Policy , Investment Policy, as revised, is adopted. 2

71 Commission Policy Subject: Investment Policy Index: Page: 1 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 I. INTRODUCTION AND SCOPE Milwaukee Metropolitan Sewerage District, hereinafter referred to as the "District", was formed under the laws of Wisconsin 1981, appearing in the Wisconsin Statutes as Sec through It is a municipal body corporate in the nature of a special purpose municipal corporation. For the purposes of constitutional debt limitations, the District is a special district. The District s chief responsibilities are to provide sewage treatment services and to maintain and improve watercourses for nearly all of Milwaukee County, Wisconsin, and portions of municipalities in surrounding counties. The District s governing body is the Metropolitan Sewerage Commission, which has 11 members. This Investment Policy hereinafter referred to as the Policy, addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of the District's operating and capital funds. The Policy does not apply to the investment management of the District s pension and deferred compensation funds. The investment guidelines outlined below have been written to comply with various regulatory requirements under which Milwaukee Metropolitan Sewerage District operates. II. INVESTMENT OBJECTIVES The District s funds shall be invested in accordance with all applicable District policies and procedures, State statutes, and Federal regulations, and in a manner designed to accomplish the following objectives: Preservation of capital and protection of investment principal. Maintenance of sufficient liquidity to meet anticipated disbursements and cash flows. Diversification to avoid incurring unreasonable risks regarding securities owned. Attainment of a market rate of return equal to or higher than the performance measure established within this Policy.

72 Commission Policy Subject: Investment Policy Index: Page: 2 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 III. DELEGATION OF AUTHORITY The Metropolitan Sewerage Commission in accordance with state statutes and Commission resolution has delegated the responsibility and authority for the investment of District funds to the Treasurer of the District. The authority delegated herein is supplemental to and descriptive of the delegation of authority to the Treasurer in Wisconsin Statutes, Sec (5). The District s Treasurer may delegate the authority to conduct investment transactions and manage the operation of other investment activities to the investment officers of the District. For the purposes of this Policy, the District Treasurer may delegate authority to the Deputy Finance Director, Controller, and the Supervisor of Revenue and Fixed Assets and anyone serving in the capacities of either on an acting basis. Other members of the Treasurer's staff may be appointed, from time to time for designated terms, to serve as investment officers of the District to assist in the cash management, treasury or investment functions during which terms they shall be deemed to be acting investment officers. Persons who are authorized to transact securities business for the District are listed in Appendix 1 of the Policy. The Metropolitan Sewerage Commission will periodically review the performance of the cash, treasury, and investment management practices of the District. The Treasurer shall establish written standard operating procedures for the operation of the District's investment program consistent with this Policy. The Treasurer and other authorized persons acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. The Treasurer acting as Investment Officer will be responsible for ensuring that sufficient liquidity exists to maintain District operations in the event of adverse market conditions. The Treasurer may obtain support services of outside professionals, pursuant to any applicable procurement policies of the District, so long as the Treasurer has a reasonable belief that a net financial advantage or necessary financial protection of the District's resources will be attained. The District Treasurer can develop a list of approved Investment Advisors after completing a thorough review of their services and qualifications. The current list of approved Investment Advisors is provided in Appendix 2. IV. PRUDENCE A prudent investment officer of the District shall act within the limits of this Policy of the Metropolitan Sewerage Commission and any statutes, resolutions and regulations pertaining to the Metropolitan

73 Commission Policy Subject: Investment Policy Index: Page: 3 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 Sewerage Commission or to the Milwaukee Metropolitan Sewerage District including the prudent person rule in Wisconsin Statutes, Sec : In acquiring, investing, reinvesting, exchanging, retaining, selling and managing property for the benefit and use of the Milwaukee Metropolitan Sewerage District, an investment officer shall exercise the judgment and care under the circumstances then prevailing, which like situated governmental financial officers of prudence, discretion, and intelligence exercise in the management of the affairs of the governmental organizations for which they act, not in regard to speculation but in regard to the permanent disposition of the governmental organization s funds, considering the probable income as well as the probable safety of the capital. V. ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution and management of the investment program, or that could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Metropolitan Sewerage Commission any material financial interests they have in financial institutions that conduct business with the District and they shall subordinate their personal investment transactions to those of the District particularly with regard to the timing of purchases and sales. Employees and officers shall refrain from undertaking personal investment transactions with the same individuals with whom business is conducted on behalf of the District. All staff and investment advisory firms will strictly adhere to the District s Code of Conduct regarding Conflict of Interest. VI. ELIGIBLE INVESTMENTS AND TRANSACTIONS A. STATUTORY AUTHORITY All investments will be made in accordance with the applicable State of Wisconsin Statutes as follows: Sec , Wis. Stats., Local Government Pooled - Investment Fund; Sec , Wis. Stats., Designation of Public Depositories; Sec , Wis. Stats., Liability of Treasurers; Sec , Wis. Stats., Intergovernmental Cooperation Sec , Wis. Stats., Investments;

74 Commission Policy Subject: Investment Policy Index: Page: 4 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 Sec , Wis. Stats., Indemnification. B. INTENT It is the intent of the District that the following list of authorized securities be strictly interpreted. Any deviation from this list must be pre-approved by the District's Treasurer in writing. C. DEFINITIONS The Metropolitan Sewerage Commission has further restricted the investment of District funds to the following types of securities and transactions: 1. U.S. Treasury Obligations: Treasury Bills, Treasury Notes, Treasury Bonds and Treasury Strips with maturities not exceeding five years from the trade settlement date. 2. Federal Instrumentality Securities: Debentures, discount notes, callable securities, step-up securities and stripped principal or coupons with final maturities not exceeding five years from the trade settlement date. For the purposes of this paragraph the Treasurer or his designee must not consider a "weighted average life" as a stated maturity. The District will not invest in any of the subordinated debentures issued by the federal instrumentality issuers. 3. U.S. Government Agency Securities: Securities with stated final maturities not exceeding five years from the trade settlement date that are backed by the full faith and credit of the U.S. government. Securities issued by the Government National Mortgage Association are limited to debentures and mortgage-backed securities. 4. Prime Commercial Paper: Commercial Paper issued on U.S. or foreign companies denominated in U.S. currency with a maturity not exceeding 180 days from the trade settlement date. The commercial paper purchased by authorized internal staff of the District must have a minimum rating of at least A-2 or the equivalent at the time of purchase by at least one service that publishes a rating on the issuer of the commercial paper. The commercial paper recommended to be purchased by an authorized investment advisor of the District acting on the District s behalf must have a minimum rating of at least A-1 or the equivalent at the time of purchase by at least one service that publishes a rating on the issuer of the commercial paper.

75 Commission Policy Subject: Investment Policy Index: Page: 5 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 The commercial paper issuer must have a commercial paper program of at least $500,000,000, except for banks and companies located within Milwaukee Metropolitan Sewerage District boundaries. Banks and companies located within the District s boundaries do not need to meet a minimum program size requirement. If the issuer has senior debt outstanding, the senior debt must be rated by at least one service that publishes a rating on the issuer of at least A- or the equivalent. (Senior debt is defined as the most senior secured or unsecured debt of the issuer with an original maturity exceeding one year.) 5. Local Government Investment Pools (LGIPs) as created and authorized under the following Wisconsin Statutes: Sec , which authorizes the creation of the Local Government Pooled Investment Fund; or Sec , which authorizes local government participation in LGIPs. Investments in LGIPs established under Sec must be limited to those pools which: are "no-load" (i.e. no commission fee shall be charged on purchases or sales of shares); limit assets of the pool to those securities authorized by Statute; and have a constant daily net asset value per share (usually $1.00). 6. Repurchase Agreements with a defined termination date of 180 days or less collateralized by U.S. Treasury securities listed in item 1 above with a maturity not exceeding 10 years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the District's approved Master Repurchase Agreement. The purchased securities shall have an original minimum market value including accrued interest of 102% of the dollar value of the transaction and the collateral maintenance level shall be 101.5%. Collateral shall be held in the District's custodial bank as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily based on that day's bid price. Repurchase Agreements shall be entered into only with dealers who have executed a Districtapproved Master Repurchase Agreement with the District and who are recognized as Primary Dealers with the Federal Reserve Bank of New York, or with firms that have a Primary Dealer within their holding company structure. A copy of the District's approved Master Repurchase Agreement and a list of dealers who have an executed Master Repurchase Agreements with the District are included in Appendix Money Market Mutual Funds as authorized under Sec (1m)(a)5, Wisconsin Statutes, which: are "no-load" (i.e. no commission fee shall be charged on purchases or sales of shares);

76 Commission Policy Subject: Investment Policy Index: Page: 6 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 are registered under the Investment Company Act of 1940; limit assets of the fund to those securities authorized by Statute; have a constant daily net asset value per share (usually $1.00); have a maximum stated maturity and weighted average maturity in accordance with Federal Securities Regulation 2a-7; and are rated AAAm or the equivalent. The aggregate value of money market mutual funds may not exceed 20% of the District s portfolio and at the time of investment, any one money market mutual fund may not exceed 10% of the District s portfolio. The District's investment may also not exceed 5% of the outstanding shares of any one money market mutual fund. 8. Certificates of Deposit with maturities not exceeding three years or interest bearing accounts insured by the Federal Deposit Insurance Corporation (FDIC) in state or national banks, or state or federally chartered savings and loan associations located within the State of Wisconsin which have been designated as depositories for public sector monies by the State of Wisconsin Statutes, and have been approved by the District in accordance with this Investment Policy, Section IX, "Selection of Banks". Any deposits exceeding $500,000 shall be covered by a surety bond or collateralized by U.S. Treasury Securities with maturities of the collateral no greater than 10 years and an original minimum market value including accrued interest of 102 % of the dollar value of the transaction. The collateral maintenance level shall be 101 % during the term of the deposit. Collateral shall be held in the District's custodial bank as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily based on that day's bid price. 9. Corporate Bonds issued by U.S. companies and denominated in U.S. currency with maturities not exceeding five years from the trade settlement date which are rated at least AA AA- or the equivalent at the time of trade settlement by at least one service that publishes a rating on the issuer of the Corporate Bond. 10. State and Local Government Series (SLGS) are United States Treasury Certificates of Indebtedness, Notes, and Bonds of the State and Local Government Series. These securities are available for purchase by state and local governments and certain other entities with proceeds (or amounts treated as proceeds) that are subject to yield restrictions or arbitrage rebate requirements under the Internal Revenue Code. The securities are characterized in the regulations as time deposit, demand deposit, and special zero interest. These securities will be used only for the purpose of defeasing District debt.

77 Commission Policy Subject: Investment Policy Index: Page: 7 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 Derivative securities (securities that derive their value from another security or index) are not permissible investments except for the following types: 1. Treasury or Instrumentality securities that have call or put options; 2. Treasury or Instrumentality securities whose coupon rates adjust by a fixed spread to an industry convention index; 3. Instrumentality securities known as step-ups that have fixed coupons for a period of time and then are callable; if they are not called, then the coupon must step up to a specified coupon level which is fixed until maturity or the next step-up date; a step-up security may have several coupon step-ups, each with an associated call option. The above securities must have a set maturity not exceeding five years from the trade settlement date. VII. INVESTMENT DIVERSIFICATION It is the intent of the District to diversify the investments within its portfolio to avoid incurring unreasonable risks inherent in excessive investing in specific instruments, individual financial institutions or maturities. The asset allocation in the portfolio should, however, be flexible depending upon the outlook for the economy, the securities market, and the District's anticipated cash flow needs. A minimum of 50% of the investable assets of the District, based on par value, will be maintained in those securities listed in items 1, 2, 3, and 5 under Eligible Investments and Transactions. This diversification requirement could be exempted for commercial paper if the commercial paper holdings meet all of the other policy requirements and mature in 60 days or less from the trade settlement date. At no time may the amount of funds invested in any issuer that is not the U.S. Treasury, a Federal Instrumentality, or a U.S. Government Agency exceed the lesser of $15 million or 10% of the investable assets of the District, based on par value. VIII. INVESTMENT MATURITY AND LIQUIDITY Investments shall be limited to maturities not exceeding five years from the date of trade settlement except by written approval of the District s Treasurer. In addition, the District shall maintain at least $10,000,000 of its total investment portfolio in instruments maturing in 60 days or less.

78 Commission Policy Subject: Investment Policy Index: Page: 8 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 In the case of callable securities, the first call date shall be used as the maturity date for investment purposes in this section if, in the opinion of the Treasurer, there is little doubt that the security will be called prior to maturity. If, in the opinion of the Treasurer, the callable security will go to maturity, then that date will be used as the final maturity. In all cases for accounting purposes, however, the final maturity date of the callable securities shall be used as the maturity of the security in order to disclose the maximum maturity in the District's financial reports. IX. COMPETITIVE TRANSACTIONS Each investment transaction shall be competitively transacted with broker/dealers/issuers that have been authorized by the Treasurer. At least two broker/dealers/issuers shall be contacted for each transaction and their bid and offering prices shall be recorded. Trades will be executed at the best price for the District. Investment advisory firms hired by the District to provide investment advisory and management services on any portion of the District s portfolio, which also have a broker/dealer operation directly or indirectly related to the advisory firm (through a holding company or sub-divisions), may not transact any trades on behalf of the District with the related broker/dealer. X. SELECTION OF BANKS AND SAVINGS AND LOANS AS DEPOSITORIES AND PROVIDERS OF GENERAL BANKING SERVICES The Metropolitan Sewerage Commission shall approve a list of authorized banks and savings and loans that provide depository and other banking services for the District, including a designated agent to deposit public moneys into FDIC or NCUA insured deposit accounts. To be eligible for authorization, a state or national bank, or state or federally chartered savings and loan association must be located within the State of Wisconsin, be a member of the FDIC, and qualify as depository for public sector monies under Wisconsin Statutes. Banks or savings and loans that in the judgment of the Treasurer no longer offer adequate safety to District, will be removed from the list. A credit analysis will be performed at least annually on all approved banks and savings and loans. The Treasurer shall maintain the list and will update it annually to insure current compliance. A list of approved banks and savings and loans is included in Appendix 4. XI. SELECTION OF BROKER/DEALERS AND FINANCIAL INSTITUTIONS ACTING AS BROKER/DEALERS

79 Commission Policy Subject: Investment Policy Index: Page: 9 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 The Treasurer shall maintain a list of authorized broker/dealers and financial institutions that are approved for investment purposes, and it shall be the policy of the District to purchase securities only from those authorized institutions and firms. The Treasurer may rely on a list of approved broker/dealers utilized by the Treasurer s investment advisor. Such approved broker/dealers shall comply with the criteria above and the list shall be provided to the Treasurer whenever updated or upon request. To be eligible, a firm/bank must meet at least one of the following criteria: 1. be recognized as a Primary Dealer by the Federal Reserve Bank of New York; 2. report voluntarily to the Federal Reserve Bank of New York; 3. qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule); or 4. be an FDIC member and meet criteria in Section IX, "Selection of Banks and Savings and Loans as Depositories and Providers of General Banking Services." In the event that the District does not utilize an investment advisor, the Treasurer will be responsible for selecting those broker/dealers and other financial institutions that deal directly with the District. The selection will be based on a broker/dealer s or financial institution s expertise in public cash management and their ability to provide service to the District's account. Authorized broker/dealers shall also attest in writing that they have received a copy of this Policy. XII. SAFEKEEPING AND CUSTODY The Treasurer shall approve one or more financial institutions to provide safekeeping and custodial services for the District. A District approved Safekeeping Agreement shall be executed with each custodian bank prior to utilizing that bank's safekeeping services. Custodian banks will be selected on the basis of their ability to provide service to the District's account and the competitive pricing of their safekeeping related services. It is the objective of the District that all owned securities be perfected in the name of the District.

80 Commission Policy Subject: Investment Policy Index: Page: 10 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 All investments except non-negotiable Certificates of Deposit, Local Government Investment Pools and Money Market Mutual Funds, purchased by the District will be delivered by book entry and will be held in third-party safekeeping by a District approved custodian bank in the custodian bank's federal reserve account or the custodian bank's Depository Trust Company (DTC) account. The District s perfected ownership of all fed wirable book entry securities shall be evidenced by a safekeeping receipt issued to the District by the custodian bank who acts as the District s safekeeping agent. The safekeeping receipt shall state that the securities are held in the Federal Reserve System either in a Customer Account for the custodian bank, which will name the District as "customer," or in a Trust Account with the trust department named as agent for the District. All securities which are eligible for delivery through the Depository Trust Company (DTC) shall be held in the custodian bank s DTC participant account and the custodian bank shall issue a safekeeping receipt to the District evidencing that the securities are held by the DTC for the District as customer. All registered securities held by a custodian shall be registered in the name of the District or in the name of a nominee of the District or in the name of the custodian or its nominee or, if in a clearing corporation, in the name of the clearing corporation or its nominee. The District's custodian will be required to furnish the District with monthly reports of holdings of custodied securities as well as a report of monthly securities activity. XIII. PERFORMANCE BENCHMARKS The Treasurer shall periodically establish a benchmark yield for the District's investment portfolio, but in no case shall the static benchmark yield be less than the Local Government Pooled Investment Fund of the State of Wisconsin measured on an annualized basis. All fees involved with managing the portfolio should be included in the computation of the portfolio's rate of return. The Treasurer shall report semi-annually the results of the portfolio to the Commission. XIV. REPORTING At a minimum, the Treasurer shall prepare a quarterly report for the District s Executive Director on the investment earnings and performance results of the District's investment portfolio. The report

81 Commission Policy Subject: Investment Policy Index: Page: 11 of 11 Authority Statute: Date Issued: 9/22/97 Resolution: (02), , , , , , , ; Date Revised: 1/26/2015 7/25/2016 1/22/2018 shall include a listing of the investments held by the District and the historical cost, amortized cost and current market value of the portfolio. The Treasurer shall prepare, at least quarterly, a review of the portfolio's adherence to appropriate risk levels and a comparison between the portfolio's total return and the established investment objectives and goals. Investment accounting shall be performed in accordance with Generally Accepted Accounting Principles (GAAP) and the accounting standards promulgated by the Governmental Accounting Standards Board (GASB). XV. POLICY REVISIONS This Policy shall be reviewed periodically by the Treasurer and may be amended by the Metropolitan Sewerage Commission as conditions warrant. The data contained in the Annexes to this Policy may be updated by the Treasurer as necessary, provided the changes in no way effect the substance or intent of this Policy.

82 Commission Policy Appendix 2 Index No Approved Investment Advisors The following investment advisors have been approved by Milwaukee Metropolitan Sewerage District: LLC Insight Investment Dana Investment Advisors, Inc. NCM Capital Management Group, Inc.Piedmont Investment Advisors,

83 Item 12 COMMISSION FILE NO: DATE INTRODUCED: January 8, 2018 INTRODUCED BY: REFERRED BY COMMISSION CHAIRPERSON TO: Executive Director (Signature on File in the Office of the Commission) Policy, Finance, and Personnel Committee RELATING TO: Authorizing the Executive Director to Procure Online Advertising for the Marketing of Milorganite SUMMARY: The Commission is requested to authorize the Executive Director to expend an amount not to exceed $200,000 with Google for Milorganite online advertising through The 2018 Milorganite advertising plan includes strategies to increase the engagement of lawn and garden audiences through its website and YouTube channel. The goal is to target individuals who utilize internet key word searches for lawn and garden products, buying the ability to bring the brand to the top of the search results. Google charges a per-click fee once the consumer chooses to view the Milorganite website or to view a video. The per-click fee amount is based on an agreed upon sum established through potential advertisers bidding on a specific time frame and geographical market. While Google is not the only search engine that provides the paid search service (Yahoo, Microsoft Bing, etc.), it is considered the lead search engine, currently holding 64% of online search traffic. The dollar amount requested for this expenditure is consistent with the 2018 budget allocation for Milorganite marketing expenses. ATTACHMENTS: BACKGROUND KEY ISSUES RESOLUTION FISCAL NOTE S/W/MBE OTHER PFP_2018_Milorganite_Online_Advertising_legislative_file.docx COMMITTEE ACTION: COMMISSION ACTION: DATE: DATE:

84 BACKGROUND Authorizing the Executive Director to Procure Online Advertising for the Marketing of Milorganite The District s Milorganite website is part of an integrated marketing strategy (social media, radio, print, point of purchase materials, etc.) aimed at educating and inspiring consumers interested in lawn and garden topics. Viewers are finding value in the website s message, as demonstrated in over 663,600 unique visits and over 1,449,028 page views for 2017 (42% and 9% increases respectively over 2016). While organic searches comprise a significant percentage of the site s web traffic, a paid search strategy is also useful in competing against brands that may have greater consumer awareness. Google and YouTube advertising helps to deliver the Milorganite message to reach a national audience that is specifically searching for relevant lawn and garden information. The online search demographic skews more diverse (younger, educated, and affluent) than typical media aimed at lawn and garden customers. Milorganite sets a specific cost per-click bid as well as daily and overall campaign budgets. Online Advertising Target: Funds will be expended as follows: Seasonality spring, summer, fall Geographically southern, northern, growth markets (west) Key words related lawn and garden terms Video promote Milorganite videos on YouTube & Google networks Targeted viewing devices desktop, mobile/tablet Results from previous years have shown a marked increase of Milorganite website traffic and use of online content, with the following results attributed to the paid search campaign. 2