2019 June – Board Meeting Minutes

 

DOWNRIVER UTILITY WASTEWATER AUTHORITY

JUNE 13, 2019 MEETING MINUTES

Taylor City Hall City Council Chambers

 

  1. Roll Call and Introductions

DUWA Chair Rick Sollars (Taylor) called the meeting to order at 9:05 AM and asked for roll call to be taken. At the time of the roll Call, voting representatives were in attendance from 9 communities: Allen Park, Belleville, Brownstown Township, Lincoln Park, Riverview, Romulus, Southgate, Taylor, and Wyandotte. A quorum (at least 7 members) was present.

  1. Approval of Agenda

Copies of the Agenda were made available prior to the meeting. A revised agenda was provided to the Board at the Board meeting, which included added Agenda Item 6d. Administrative: EPA WIFIA Letter of Interest for Project Financing (Attachment 1). Motion by DUWA Vice Chair Bill Matakas (Allen Park) and seconded by Dustin Lent (Southgate) to approve the revised Agenda. Motion passed unanimously.

  1. Approval of Minutes from May 9, 2019 Board Meeting

Copies of the meeting minutes from the May 9, 2019 Board Meeting were distributed by email prior to the meeting (Attachment 2). Motion by Doug Drysdale (Riverview) and seconded by Rick Rutherford (Belleville) to approve of the minutes. Motion passed unanimously.

  1. Legal Update

Attorney Dan Artaev, of Fausone Bohn, provided the Legal Update.

  • Attorney Artaev noted there were no new updates from the May 9 Legal Update.
  • Southgate-Wyandotte Drain Drainage District (SWRDDD) updates related to DUWA:
    • DUWA’s Attorney recently met with SWRDDD’s attorney, Craig Hupp, to discuss preparation of a SWRDDD Pump Station No 5 easement. When DUWA took over DSDS, DUWA and SWRDDD desired to create an easement and license, given the overlap of utility infrastructure through the parcels. Based on the meeting, a plan is in place to draft the easement. The Attorneys expect the easement to be drafted within a few months’ time.
    • A Discharge Agreement was prepared for execution at system transfer/closing between DUWA and SWRDDD that outlined the interrelated use of Pump Station No 5 and other items. This Agreement was not signed at closing due to a dispute by SWRDDD of a change in cost sharing methodology for the electric bill between DUWA and SWRDDD. Revised language has been introduced into the Agreement since the transfer date to satisfy the need to advance on the electrical split dispute. The revised language addresses the need for SWRDDD to review and investigate an optional method to split the bill over the next year. If an agreement is not put in place by July 2020, then the bill split will be per the recommendation of DUWA’s as-needed engineering firm, HRC, which was previously presented to the Technical Committee in late 2018. This recommendation shifts more of a payment obligation to SWRDDD than the current bill splitting of 92% to DUWA and 8% to SWRDDD.
  1. System Manager Update

System Manager Vyto Kaunelis, of OHM Advisors, provided a verbal summary of activities since the last meeting. A written summary was in the pre-meeting Board packet for the System Manager Report (Attachment 3), as well as a summary on biosolids efforts (Attachment 4).

a.  System Manager Report

System Manager Kaunelis noted the following highlights from the System Manager Report:

    • Active Construction:
      • Weiss: Retainage remains with DUWA on this contract.
      • HNTB: The teams are working on closing on the contract. Some work efforts are shifting between tasks. The total amount of the contract is not changed.
    • Electrical Inspection Repair: Veolia has engaged UIS as their subconsultant for this authorized work. Work continues forward.
    • DWTF Performance:
      • The Biosolids project is moving forward and will be further discussed later in the Agenda.
      • A large rain event occurred on May 1. A report on the rain event was prepared by Veolia and ASI given collected flow meter data (Attachment 5, after System Manager Report). This report was shared with the Technical Committee. An important item of note related to this May 1 event was that two weeks prior, a large amount of rain occurred. Thus, coming into the May 1 event, the DWTF was flowing at 100 MGD versus a typical dry weather flowrate of 50 MGD. This rain event is the second highest in terms of percent of rainfall volume. DWTF performed well during the rain event and took on flows above design capacity. A meeting will be set with the Communities to discuss further actions to take in the future to prevent basement backups. Related to basement backups – a PDF form for claims is available on DUWA’s website. A number of claims have been received by DUWA to date.
    • Budget & Rate Development: Based on an analysis by TetraTech, a request will be made later in the Agenda for adjustment of IPP Surcharge Rates.
    • SCADA Split: Eramosa completed the report on SCADA split options. The Technical Committee has reviewed the report and endorses implementation of Option B2, which is for DUWA to develop their own SCADA system.
    • SWRDDD: SWRDDD will hold a Board meeting later today. DUWA’s Professionals will attend to support advancement of the Alkali Sewer Repair work. DUWA is working with SWRDDD to divert dry weather flow to SWRDDD during the rehab work. DUWA is hoping for approval from SWRDDD at their Board meeting.

b. Biosolids Update 

    • OHM, Veolia, and HRC continue to work on development of suggested alternatives. These parties met with the Technical Committee to discuss the options. The Technical Committee recommends moving forward with the dryer option. No other options are being pursued at this time.
    • For the Drying option, the medium-temperature option may be pursued. There are three manufacturers that fit this category to provide for a competitive bid process for selection of a dryer.
    • The schedule for delivery of the dryer is the most critical, as the timing is such that the faster the system is in place and operational, the faster DUWA will save on landfill fees. The teams are looking at ways to accelerate the process.
    • Financing options are being identified – WIFIA, conventional, and Veolia. SRF is not currently being considered due to timing constraints of the process. The WIFIA option is available via a federal program. The interest rate for financing is equal to the treasurer’s rate, which is reasonable. A letter of Interest (LoI) requires development to be considered for this program. This is a substantial package that requires preparation with a due date of July 5, 2019. The Agenda included an informational item on this program. OHM, with support by Veolia, are developing the LoI.

After the update, System Manager Kaunelis received and responded to questions from the Board.  Discussion items included the safety of the medium-temperature dryers, and general items associated with the project’s scope, schedule, and budgetary cost. Subsequent to the discussion period, System Manager Kaunelis asked the Board if they supported the dryer option. The Board agreed with the approach – DUWA’s Professionals will continue to move forward the dryer option as the Biosolids project.

c. SCADA Split Update 

Eramosa has been assisting DUWA with considering split options. As already noted, the Technical Committee has endorsed moving forward on Option B2. Late yesterday, Eramosa provided a draft proposal for advancing Option B2, where DUWA separates from the system. This proposal was provided to the Board in hard copy at the meeting (Attachment 5).

Eramosa has prepared and provided a three-phased proposal for their services associated with the split. The proposal includes phases for Transition, Design, and Implementation/Construction. In the interest of time, it is ideal for the Board to move forward with Eramosa’s Transition phase (only) of the draft submittal. A revised, final proposal is expected to be provided to DUWA at the July meeting to support advancement of the Design and Implementation/Construction phases.

Motion by Bill Matakas (Allen Park) and seconded by Dustin Lent (Southgate) to approve the Transition phase of Eramosa’s SCADA proposal for a not-to-exceed fee of $9,300. Bill Turner (Brownstown) asked if the timing of the work would be revised passed on today’s authorization by the Board. System Manager Kaunelis noted it would; the schedule would move up. A roll call was made to advance the Transition services. The vote was approved by all attending members voting yes. Total weight of the vote in attendance was 84.471%.

  1. Requests for Authorizations

System Manager Lambrina Tercala, of OHM Advisors, provided the following requests to the Board.

a. Professional Services: PFM On-Going Engagement as Financial Advisor

A proposal for PFM to continue their engagement with DUWA as the Authority’s Financial Advisor was provided ahead of the meeting (Attachment 6).  The proposal includes PFM’s assist to DUWA on an annual basis with rate agency work, which may include but not be limited to gathering information from local units, placing the data in a rate agency-authorized form, updating overall cash flows, holding discussions with the rating agency, etc. The proposed fee is $2500 per year and assumes up to 15 hours’ worth of work effort.

A motion was made and supported to approve PFM as DUWA’s continued Financial Advisor for assistance with rating agency work with a fee of $2500 per year. Motion passed unanimously. A roll call was taken. The vote was approved by all attending members voting yes. Total weight of the vote in attendance was 84.471%.

b. Budgeted, Capital Project: Industrial Water Booster Skid Replacement

Prior to presenting the Industrial Water Booster Skid Replacement proposal. System Manager Tercala invited Jason Tapp, Veolia’s Assistant Project Manager, to inform the Board and those members that attended the recent Technical Committee for why the Board package does not include request to approve replacement of the Screened Final Effluent (SFE) water system (aka ‘Big Blue’). At the Technical Committee, the SFE water system replacement was presented and recommended for advancement (by the Technical Committee).

Mr. Tapp advised the Board that the criticality of proceeding with the SFE water system replacement project has been lowered in priority. Veolia has worked hard to identify existing, available pumps and system components to provide redundancy in the event the SFE water system fails. As part of this work, Veolia identified (smaller) pumps that provide sufficient pressure to run the system. Veolia has commissioned this system and its performance is exceeding expectations. As such, funds previously allocated for the SFE water system replacement, which was budgeted in the rate package, are anticipated for reallocation to HVAC modifications that are necessary to advance before winter temperatures.

Veolia’s proposal for the Industrial Water Booster Skid replacement project was provided to the Board ahead of the meeting (Attachment 7). The proposal is for replacement of two (2) Industrial Water Skids. The equipment needs replacement due to deterioration. Veolia’s proposed work plan was discussed at the 5/30 Technical Committee. The Technical Committee recommended proceeding with the work. This work was planned and budgeted in the recent rate package. The rate package included a budget fee of $75k, with another $25k planned for the following rate year. The currently proposed costs are $88k.

A motion was made and supported to approve Veolia for the replacement of (2) Industrial Water Skids for a not-to-exceed fee of $88k. Motion passed unanimously.

c. Operations: MissDig Account Setup

At the May meeting, the Board approved a MissDig pilot program. Veolia will provide the labor and equipment to conduct the pilot program. The teams are now working with MissDig to develop a MissDig account to allow for future ticketing requests. Several steps are necessary to develop a MissDig account, including contract review and execution and payment of account fees. A memo associated with this request was circulated to the Board ahead of the meeting (Attachment 8).

System Manager Tercala asked the Board to approve a motion to execute the MissDig contract documents to permit the development of a MissDig account and also for approval of fees incurred by MissDig for the program. The account setup and Year 1 maintenance fee is expected to be less than $3k. This excludes future ticketing costs.

A motion was made and support to the DUWA Chair or Vice Chair to execute the MissDig contract documents and master agreements and pay the Year 1 account setup and maintenance fees with a not-to-exceed cost of $3k. Motion passed unanimously. 

d. Administrative: EPA WIFIA Letter of Intent for Project Financing

DUWA’s team of consultants is attempting to track all available funding sources for the potential dryer project. One funding mechanism that may be of use is WIFIA, which is administered by the EPA. System Manager Tercala provided highlights of the program and noted a summary sheet was provided to the Board ahead of the meeting (Attachment 9).

It is desirable for DUWA to maintain eligibility with WIFIA, and as such, would need to prepare a LoI by July 5, 2019. OHM Advisors seeks to prepare and submit the Letter of Interest on behalf of DUWA. Authorizing signatures may be necessary for the application. As such, System Manager Tercala requests the Board to authorize the Chair or Vice Chair to sign the necessary forms for the Letter of Interest package.

Motion by Dustin Lent (Southgate) and supported by Roberto Scappaticci (Romulus) to authorize the Chair or Vice Chair to sign the necessary forms for the WIFIA LoI package in consideration of the potential dryer project. Motion passed unanimously.

  1. Contract Operator Update

Kelly Irving, Veolia’s Program Manager, provided the Contract Operator update.

a. April 2019 MOR

An April 2019 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting package (Attachment 10). Highlights from the summary and other updates included the following:

    • Veolia continues to clean up the site from accumulated debris and overgrown brush.
    • Veolia is advancing operational changes with staff operators to improve on accountability and encourage team members to take initiative.
    • DWTF has been operating well, including during the early May wet weather event.

b. PFAS Update

A brief update on PFAS efforts was provided to the Board ahead of the meeting (Attachment 11). No significant concerns have been identified. Veolia’s IPP team will continue to monitor and communicate on these activities.

  1. Treasurer’s Report

a.  Request to Adopt Revised IPP Surcharge Rates

System Manager Kaunelis presented TetraTech’s review of the IPP program costs. The report was provided to the Board ahead of the meeting (Attachment 12). Based on TetraTech’s findings, it is advised to adopt increased IPP surcharge rates.

The IPP program includes three core revenue sources via rates or fees: industrial surcharges rates, significant industrial user and lab fees, and non-residential user fees. TetraTech’s analysis is for the surcharge component only. The other components will be advanced with final estimates for rate adjustments next year, once additional data is available to move forward on decision making.

The surcharge rate has not been changed in a while, and the analysis shows there is a 10-20% significant (upward) change that is justifiable. System Manager Kaunelis requested a motion to advance the proposed surcharge rates outlined on page 16, Table 20, of the TetraTech report.

Motion by William Matakas (Allen Park) and supported by Roberto Scappaticci (Romulus) to increase the surcharge rates of BOD to $0.325/lb, TSS to $0.242/lb, and total P to $2.417/lb, commencing as part of the rate year of July 1 through June 30. Motion passed unanimously.

System Manager Kaunelis noted future IPP rate modifications would coincide with rate packages.

b.  Pending Invoices

Treasurer Couture presented the invoice register with a request for payment. The invoice register was included in the pre-meeting package (Attachment 13). The invoice register included request for payment for 21 invoices for a total of $1,687,081.82. The request for payment is $1,687,081.82. Motion by Vice Chair Matakas (Allen Park) and supported by Roberto Scappaticci (Romulus) to pay the invoices. Motion passed unanimously.

  1. Public Comment

There was no public comment.

  1. Other Business

Chairman Sollars apologized for neglecting to introduce a new voting representative to the Board. The voting representative is Greg Mayhew, with the City of Wyandotte.

There were no items brought forth for consideration as “Other Business” items.

11. Next Meeting Date: July 11, 2019 (9:00 AM; Taylor City Hall)

Chairman Sollars (Taylor) reminded the Board that the next meeting would be the Board Meeting on Thursday, July 11, 2019 (9:00 a.m. Taylor City Hall).

  1. Adjournment

There being no other business, Chairman Sollars (Taylor) announced that a motion to adjourn would be in order. Motion by Doug Drysdale (Riverview) and supported by Dustin Lent (Southgate) to adjourn the meeting.  Motion passed unanimously at 10:10 AM.

Meeting Minutes Prepared by:

Lambrina Tercala, DUWA System Manager

Attachments

  1. Meeting Agenda
  2. May 9, 2019 DUWA Board Meeting Minutes
  3. System Manager Report for June 2019 Board Meeting (by OHM Advisors), including May 2019 Rain Event Summary (by Veolia and ASI)
  4. Biosolids Project Update (by OHM Advisors)
  5. SCADA Split Proposal (by Eramosa)
  6. Proposal for Continued Financial Advisory for Rate Agency (by PFM)
  7. Proposal for Industrial Water Booster Skid Replacement (by Veolia)
  8. Request to Authorize Payment for MissDig Program (by OHM Advisors)
  9. Request to Signed WIFIA Letter of Interest (by OHM Advisors)
  10. Monthly Operating Report for April 2019 (by Veolia)
  11. PFAS Summary (by Veolia)
  12. IPP and Surcharge Rate Study Update (by TetraTech)
  13. Invoice Register, dated June 7, 2019 (by DNS Financial Services)