2019 May – Board Meeting Minutes

 DOWNRIVER UTILITY WASTEWATER AUTHORITY

MAY 9, 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 10 communities: Allen Park, Belleville, Brownstown Township, Lincoln Park, Riverview, Romulus, Southgate, Taylor, Van Buren Township, 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 (Attachment 1). Motion by DUWA Vice Chair Bill Matakas (Allen Park) and seconded by Dustin Lent (Southgate) to approve the Agenda. Motion passed unanimously.

  1. Approval of Minutes from April 11, 2019 Board Meeting

Copies of the meeting minutes from the April 11, 2019 Board Meeting were distributed by email prior to the meeting (Attachment 2). Jim Taylor (Van Buren Township) noted Item 1 of the minutes was in error, as it excluded reference to Van Buren Township as an attending community. Motion by Vice Chair Matakas (Allen Park) and seconded by Jim Taylor (Van Buren Twp) to approve of the amended minutes. Motion passed unanimously.

  1. Legal Update

Attorney Paul Bohn, of Fausone Bohn, provided the Legal Update.

  • Attorney Bohn advised the Board that the $500K Post-Closing Escrow is still with Wayne County. Wayne County is in the process of closing out their accounting and will remit remaining funds to DUWA by September 2019 rather than by March 2019. The legal teams will work on getting the time extension memorialized in writing.
  • Wayne County’s legal team is aware DUWA may request their (DUWA’s) own SCADA split.
  • DUWA and Wayne County legal teams are working on preparation of legal documents to satisfy easements. This will be a several year process.
  • Flood claims are an item DUWA is prepared to handle under Fausone Bohn contract.
  • The Davis v Southgate litigation case, where Bodman was re-assigned to DUWA, is nearing closure. Payment had been released, but the check was lost and expired. Reissue of payment is pending.
  1. System Manager Update

a. System Manager Report
b. Biosolids Update
c. SCADA Split 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 (Attachment 3), as well as a summary on biosolids efforts (Attachment 4). Highlights from the summaries and other updates included the following:

  • Biosolids: Hubble, Roth, and Clark (HRC), DUWA’s As-Needed Engineer, are in process of reviewing Veolia’s biosolid option recommendations. HRC has posed a few questions to Veolia’s recommendations, and Veolia is working on the details to address. In general, HRC’s review is positive and the dryer option appears to be viable. While Veolia has proposed their own product for the dryer option, there may be other manufacturers that can be considered. HRC has developed a draft report with their review comments. This report will be shared with the Technical Committee and Veolia. If the Technical Committee recommends the dryer option, then DUWA’s internal team will move forward on financial considerations to assess how to implement the project and finance. It is in the interest of DUWA to move forward quickly on this matter.
  • NPDES requirements: The Blending Work Plan was submitted to EGLE; formal approval was received at the end of April. HRC prepared and provided a formal proposal for the development of the Basis of Design which needs to be submitted to EGLE (per the approved Work Plan). HRC’s as-needed contract will be used as the contracting mechanism to complete the work; the work is less than $40K. Once the Basis of Design is complete, DUWA will have the opportunity to go out for bid for proposal from engineers for the design phase. The decision to go out for bid or remain with HRC will be by the Board.
  • Rain Events: Ecorse Creek levels increased and caused surface flooding and basement backups. OHM and Veolia are in data gathering mode. The DWTF performed well during the rain event. Design flow of DWTF is 225 MGD, and the DWTF was processing over 250 MGD over three straight days, which was very positive. Veolia is working with their flow metering subcontractor, ASI, to assess how the wet weather tunnel performed. The tunnel data is not available real time. Once this data is available and scrubbed, the teams will start analysis to assess how the collection system performed.
  • Southgate-Wyandotte Relief Drain Drainage District Flow: Recently, their flow meter was not operating properly. Veolia noticed the flows were higher, so they requested SWRDDD to go to manual mode.
  • Future Rates: Rates for the next rate year are on this meeting’s agenda. OHM continues to work with TetraTech on the IPP rate assessment. The teams expect to bring forward IPP rate assessment recommendations at the June Meeting.
  • SCADA: Eramosa has developed an approach and cost for DUWA to split from the existing system. This is a new approach than what was considered by Wayne County. This parallel system would be faster to implement. Also, DUWA would maintain control of the implementation work. The cost associated with the work is near $400k. The existing infrastructure is aging and will require replacement in the future. A new system helps satisfy the future need to replace the aging equipment. A call is planned with Wayne County for Tuesday to receive their initial reaction to the report and develop a direction for next steps.
  1. Request to Approve Payments and Authorizations

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

a. Secondary/Headworks/Lab Construction SRF Project – Weiss Pay Application

Weiss is the general contractor for DUWA’s State Revolving Fund Project No. 5420-01, Secondary/Headworks/Lab Renovation Project. The project is in the closeout phase. A request for motion was made to authorize payment to Weiss for Pay Application 30 for a total fee of $321,931.54. A retainage of $50,000 remains on the Weiss contract. The pre-meeting packet included recommendation for payment with backup material (Attachment 5). Motion by Doug Drysdale (Riverview) and supported by Roberto Scappaticci (Romulus) to approve Payment Application No. 30 to Weiss for a total fee of $321,931.54 in association with SRF Project No. 5420-01. Motion passed unanimously.

b. Veolia Proposal for Electrical System Condition Assessment & Repairs

Veolia has identified outstanding electrical system repairs that require attention. The need for these repairs were previously identified by Wayne County in 2012. With the electrical system being a critical asset, Veolia has requested to advance on these repairs and also complete routine system inspection work.

A presentation on the proposed work was presented to the Technical Committee on April 3, 2019. Three bids were received by Veolia for the proposed work. The Technical Committee recommended advancing the work with the apparent low bidder, UIS. Veolia will hold the contract and provide project management. UIS will perform the inspection and repair work as a subcontractor to Veolia. The total project fee is $532,320, which includes Veolia’s 10% markup ($48,928) for project management. UIS’s cost for inspection is $196,073 and the cost for repair is budgeted as $287,855.

The pre-meeting packet included recommendation for payment with backup material (Attachment 6). Motion by Vice Chair Matakas (Allen Park) and supported by Dustin Lent (Southgate) to approve Veolia for electrical system inspection and repair work for a total fee of $532,320. Motion passed unanimously.

 c. Veolia Proposal for MissDig Pilot Expenses

MissDig operations were not previously performed by Wayne County for the DSDS. DUWA’s Technical Committee has expressed interest for DUWA to complete MissDig activities. Since MissDig activities were not previously performed, the level of effort to execute a MissDig program for the service area is not yet known.

OHM and Veolia have worked together to develop a cost considerate approach to a pilot program to assess the overall MissDig needs of the system. Based on the pilot period findings, the teams will assess the staffing and operational expense associated with a formal MissDig program and provide recommendation to the Technical Committee and Board. The pre-meeting packet included recommendation for the pilot approach and associated cost (Attachment 7). The work would be performed under Amendment No. 2 to the current operations contract with Veolia.

The pilot program fees include a one-time expense of $14,465 (for the locator and start-up costs) and a monthly fee of $1,981.17 (for vehicle, insurance, etc). Motion by Jim Taylor (Van Buren Township) and supported by Doug Drysdale (Riverview) to approve Veolia’s MissDig pilot expenses and authorize the DUWA Chair or Vice Chair to execute Veolia’s Contract Amendment No 2. Motion passed unanimously. 

d. Veolia Expenses Associated with Dec 2018 & Feb 2019 Emergency Repairs

Two emergency response events have occurred since system transfer. Veolia is requesting payment for their rendered services associated with the emergency response work. The pre-meeting packet included recommendation of payment to Veolia for the expenses (Attachment 8).

December 2018 – Unplanned Electrical Outage: The facility experienced an outage of main power in December 2018. During this time, Ferndale provided services to Veolia to assist and troubleshoot the source(s) of power failure. Ferndale was utilized for this work as they were already on site to support the electrical work under the Weiss contract and were able to mobilize quickly.

Veolia is requesting a cost plus 10% payment for this work. Total project cost due to Veolia is $25,307.59.

February 2019 – Drain Line Sink Hole at DWTF: The facility experienced sink holes and two drain line collapses near the Biosolids Building at DWTF. RJ&J mobilized to assist Veolia with the underground work. Other companies were solicited for emergency response, but RJ&J was one of the few companies willing to mobilize quickly to assist with the repair. The work included excavation, removal and replacement of portions of the existing 24” and 8” drain lines, and limited concrete and mortar work.

Veolia is requesting a cost plus 10% payment for this work. Total project cost due to Veolia is $35,547.67. Motion by Rick Rutherford (Belleville) and supported by Todd Drysdale (Wyandotte) to approve Veolia’s emergency response expenses for a total fee of $60,855.26. Motion passed unanimously.

  1. Contract Operator Update

Ms. Irving and Mr. Jason Tapp, DWTF’s Assistant Project Manager for Veolia, provided the Contract Operator update.

a. March 2019 MOR

A March 2019 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting package (Attachment 9). Highlights from the summary and other updates included the following:

  • DWTF Performance through Recent Rain Event: The completed repairs and remedial work performed since late last year helped the DWTF maintain compliance through the mid-April rain event. Veolia staffed the DWTF with slightly more employees than normal during the rain event to ensure labor was available in the event of a system or maintenance issue. All primary tanks were in use and provided expected flow volumes in use.
  • Current Repair Work: Veolia is now focusing on less critical repair work, including maintained to scum gates on all clarifiers as well as lighting repairs.
  • Site Clean Up: Veolia continues to clean up the site from accumulated debris. A total of 12 dumpsters have been sent off site with waste. A typical year would include 3-4 dumpers only.
  • Vehicles: Veolia’s staff have received questions when driving the DUWA-owned fleet vehicles to perform IPP and collection system work. While these employees have their Veolia employee cards, the cars are not marked as service vehicles. Veolia provided a proposed decal to be installed on the vehicles to help to minimize field questions. Veolia will install the proposed decal and maintain it on the vehicles until DUWA selects an official logo.
  • Women on the Move: Veolia has a corporate STEM program called ‘Women on the Move.’ Veolia has reached out to local area school students to attend a day at the DWTF and talk to people from the wastewater industry. This event is expected to occur by end of month.
  1. Treasurer’s Report

a. Plante Moran 2018 DRAFT Financial Audit Update

Financial Consultant Beth Bialy, of Plante Moran, presented the status and general highlights of the 2018 draft financial audit. A copy of the audit was provided in the Board’s pre-meeting package (Attachment 10). Since the report is draft, no opinion is currently stated. An unmodified opinion is expected, which means no change is expected in the numbers, and that the finances are fairly stated.

b. Request to Adopt Proposed 2019 Rates

Accountant Doug Drysdale, of DNS Financial Services, presented the proposed 2019 rates for adoption. A copy of the proposed rates was provided in the Board’s pre-meeting package (Attachment 11). DUWA’s Finance Committee met on the proposed and recommended them for adoption. Meeting minutes from the Committee meeting were included in the pre-meeting package (also in Attachment 11). Subsequent to the Finance Committee meeting, DUWA’s Officers, DNS Financial, and System Mangers met to also review the rates.

Accountant Drysdale presented an overview of the rate package and how it related to the previous Plante Moran projections. The floor was open for question, but no questions were asked. Motion by Todd Drysdale (Wyandotte) and supported by Dustin Lent (Southgate) to approve the proposed rates. A roll call was taken. Support of the adoption of the rate package passed with all attending members voting yes. Total weight of the vote in attendance was 86.67%.

c. Quarterly Report for Period January through March 2019

Treasurer Jason Couture (Taylor) presented the first quarter 2019 financial quarterly report. The report was included in the pre-meeting packet (Attachment 12). Treasurer Couture presented an overview of the quarterly report, which included general guidance on percent burn rate. In general, because this is a first quarter lookback, the burn rate is generally 25%. However, it was noted that some items, such as the Industrial Surcharges revenue is tracking at 57.5% of budget generated. This is because of the influence of WCAA’s seasonal glycol contributions, which occur during the colder temperature months.

d. 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 39 invoices for a total of $2,250,057.00. The request for payment is $2,250,057.00. Motion by Vice Chair Matakas (Allen Park) and supported by Dustin Lent (Southgate) to pay the invoices. Motion passed unanimously.

  1. Public Comment

There was no public comment.

  1. Other Business

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

  1. Next Meeting Date: June 13, 2019 (9:00 AM; Taylor City Hall)

Chairman Sollars (Taylor) reminded the Board that the next meeting would be the Board Meeting on Thursday, June 13, 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 Vice Chair Matakas (Allen Park) and supported by Dustin Lent (Southgate) to adjourn the meeting.  Motion passed unanimously at 10:12 AM.

Meeting Minutes Prepared by:

Lambrina Tercala, DUWA System Manager

 

Attachments

  1. Meeting Agenda
  2. April 11, 2019 DUWA Board Meeting Minutes
  3. System Manager Report for May 2019 Board Meeting (by OHM Advisors)
  4. Bio-solids Project Update (by OHM Advisors)
  5. SRF No. 5420-01 Payment Application 30 (by Weiss)
  6. Proposal for Electrical System Condition Assessment & Repairs (by Veolia)
  7. Proposal for MissDig Pilot Expenses (by Veolia Water)
  8. Request for Payment for Emergency Repairs (by Veolia Water)
  9. Monthly Operating Report for March 2019 (by Veolia)
  10. DRAFT 2019 Financial Audit (by Plante Moran)
  11. Proposed 2019 Rate Package (by DNS Financial Services)
  12. 2019 First Quarter Quarterly Finance Report (by DNS Financial Services)
  13. Invoice Register, dated March 3, 2019 (by DNS Financial Services)