2019 July – Board Meeting Minutes

 DOWNRIVER UTILITY WASTEWATER AUTHORITY

JULY 11, 2019 MEETING MINUTES

Taylor City Hall City Council Chambers

 

  1. Roll Call and Introductions

DUWA Vice Chair William Matakas (Allen Park) called the meeting to order at 9:00 AM and asked for roll call to be taken. At the time of the roll call, voting representatives were in attendance from 11 communities: Allen Park, Belleville, Brownstown Township, Ecorse, 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. A revised agenda was provided to the Board at the Board meeting, which included added Agenda Item 6g. SRF Capital Project: Reconciliation (Deduct) of Weiss SRF Contract and Agenda Item 6h. SRF Capital project: Time Extension Request of HNTB SRF Contract (Attachment 1). Motion by Roberto Scappaticci (Romulus) and seconded by Dustin Lent (Southgate) to approve the revised Agenda. Motion passed unanimously.

  1. Approval of Minutes from June 13, 2019 Board Meeting

Copies of the meeting minutes from the June 13, 2019 Board Meeting were distributed by email prior to the meeting (Attachment 2). Motion by Rick Rutherford (Belleville) and supported by Doug Drysdale (Riverview) to approve of the minutes. Motion passed unanimously.

  1. Legal Update

Jim Fausone, of Fausone Bohn, provided the Legal Update.

a. Easement Review Process

Attorney Fausone made note of the Easement memo that was distributed by email prior to the meeting (Attachment 3). The memo summarized the work Fausone Bohn is completing associated with development of easements. Wayne County will be assisting DUWA in the process of development of such easements associated with the property transfer.

Other legal items that were highlighted included the following:

    • The Davis v Southgate litigation case, where Bodman was re-assigned to DUWA, is nearing closure. Payment had been made. Per Bodman, the work should be complete by Summer to early Fall.
    • Fausone Bohn has received 2,300 notices of potential claims for the May 1 rain event. These are statutory notices only; no lawsuits have been brought forward.
    • DUWA is working with SWRDDD on use/easement and certain electrical charge issues. SWRDDD is working with their Technical Committee to develop an approach to these issues. The next SWRDDD Board meeting is in October.
  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 4), as well as a summary on biosolids efforts (Attachment 5).

a. System Manager Report

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

    • Active Construction: There are several warranty items that are outstanding. The teams are working together to resolve.
    • CCTV:
      • Year 1 CCTV work is underway at Riverdrive and Goddard.
      • DUWA received their annual right-of-way permit from Wayne County.
    • Flow Metering: May 1 rain event resulted in various flooding events. Several communities expressed interest in preventing future basement backups from occurring. OHM is working on potential action items to review with a core team. The items will be brought back to the Board if action is warranted.
    • Equipment Replacement Projects: Veolia is working on solutions for equipment replacements. One major item that has been brought up is heating at the Influent Pump Station. The existing system is steam heated. Veolia has prepared an approach for consideration to transition from steam to force air. The Technical Committee will be advised of this matter later this month. Approval of Phase I to repair the existing steam heating system is included in today’s agenda.
    • Signage: Existing signs at the DWTF still note ‘Wayne County.’ Veolia has looked at different signs to consider for replacement. DUWA will need to hold a policy discussion on how to handle new signage, including consideration of branding work or logo development.
    • SCADA Split: Eramosa provided their Transition Plan late yesterday. This has been provided to the Board in a separate hardcopy package (Attachment 6). This will be used as a communication tool to identify what work is happening when.
    • SWRDDD Board meeting was held on June 3. The Board approved the bypass request for the Alkali Sewer Repair work, subject to approval of an agreement to protect SWRDDD from the construction efforts. SWRDDD’s attorney is drafting the agreement, which will be circulated to Fausone Bohn and brought to the Board’s attention.

b. Biosolids Update/WIFIA Letter of Interest

    • DUWA’s professionals, along with Veolia, prepared a WIFIA Letter of Interest (LoI), which was submitted on July 3, 2019. EPA has received the LoI. They will review for eligibility by way of scoring criteria. DUWA will be advised if asked to apply for the funding by late Fall. This will be a three-month process.
    • WIFIA provides a subsidized loan for 49% of the project total. The rate is nearly the Treasury’s rate plus a percentage. DUWA is responsible for a 51% price match, if selected. WIFIA is a competitive program. Last year, 39 projects were awarded out of 60 interested entities.
  1. Requests for Authorizations

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

a. Budgeted, Capital Project: Implementation of SCADA Split

A request to authorize Eramosa for SCADA Split design and implementation services was provided in the pre-meeting package (Attachment 7). The request was to amend Eramosa’s ‘transition plan’ contract to include the design and implementation work. The total not-to-exceed cost of the work, including the previously approved transition plan efforts is $88,113.16.

A Motion was made to amend Eramosa’s contract to include the remaining design and implementation services associated with the SCADA split from $9,3000 to $88,113.16 for a not-to-exceed fee. Motion by Jim Taylor (Van Buren Township) and supported by Dustin Lent (Southgate). Motion passed unanimously.

b. Budgeted, Capital Equipment: DSDS Meter Replacements @ PD-2 & PA-3

A request to authorize Veolia for replacement of flow meters at PD-2 and PA-3 was provided in the pre-meeting package (Attachment 8). This request was budgeted in the current rate package. The rate package budgeted for up to $100k for the meter replacement effort. Based on updated quotes, the work can be completed for $29,636.08.

The work is to replace the meters with ADS Triton+ meters and salvage their Accusonic parts for spares.

Motion by Rick Rutherford (Belleville) and supported by Roberto Scappaticci (Romulus) for the meter replacement at PD-2 and PA-3 for a not-to-exceed fee of $29,636.08. Motion passed unanimously.

c. Budgeted, Capital Equipment: Rebuild of Tunnel Pump No 2

A request to authorize Veolia for rebuild of Tunnel Pump Number 2 was provided in the pre-meeting package (Attachment 9). This request was budgeted in the current rate package. The rate package budgeted up to $63,800 for the rebuild. Based on updated quotes, the work can be completed for $63,195.

Motion by Robert Scappaticci (Romulus) and supported by Dustin Lent (Southgate) to approve Veolia for a not-to-exceed fee of $63,195 to complete rebuild of Tunnel Pump No 2. Motion passed unanimously.

d. Budgeted, Capital Equipment: IPS Flow Meter Replacement

A request to authorize Veolia for replacement of six (6) flow meters at the Raw Pumps located in the Influent Pump Station was provided in the pre-meeting package (Attachment 10). As part of capital planning discussions during Rate Package development, replacement of four (4) flow meters were planned. These are large diameter magmeters sized from 18 to 36-inches. The budgeted cost was $154k. Because of Veolia’s global presence, they have achieved very competitive pricing with several key vendors. Veolia has leveraged their vendor pricing to provide for flow meter replacement of all six (6) of the Influent Pump Station (IPS) flow meters within the budgeted cost. Replacement of all 6 flow meters is necessary but was not planned due to other equipment replacement priorities.

Motion by Jim Taylor (Van Buren Township) and supported by Doug Drysdale (Riverview) to approve Veolia for a not-to-exceed fee of $154,000 to replace six IPS Flow Meters (No 1 through 6). Motion passed unanimously.

e. Critical Equipment Repair: Influent Pump Station Boilers 1 & 2

A request to authorize Veolia for repair of the existing HVAC boilers 1 & 2 at the Influent Pump Station was provided in the pre-meeting package (Attachment 11). Replacement of the boilers at the Influent Pump Station (IPS) with HVAC was planned as part of the rate package. The budgeted cost was $125k.

Veolia has investigated the scope and costs associated with the upgrade, and the current budget is not appropriate. Veolia has developed a phased approach to the work, which is outlined in Attachment 11. The request for the Board is to proceed with Phase I. Phase I is a $64k repair, which is within budget. The Phase I request is based on the need to restore a heat source before cold temperatures set in. The approach laid out in Phases 2 & 3 will be presented and discussed with the Technical Committee at the next meeting on July 25.

Motion by Doug Drysdale (Riverview) and supported by Jim Taylor (Van Buren Township) to approve Veolia for a not-to-exceed cost of $64,000 to complete the repairs to the existing steam boilers under Phase I work. Motion passed unanimously.

f. Emergency, Other: Fuel Charges related to CY2018 IPS Electrical Failure

As part of the emergency IPS electrical switch gear failure project, emergency generators were rented and used to maintain power. Work associated with the IPS switch gear project was not SRF-eligible, although it was completed by many of the same trades who were available on site under the SRF project.

Previously, fuel for the temporary generators was purchased directly by Wayne County from Chapp & Bushey Oil Company. Upon transfer, Veolia purchased the fuel to maintain power. Fuel costs are DUWA’s expense. A request to authorize payment to Veolia for the costs they incurred for fuel purchase was included in the pre-meeting package (Attachment 12). The total cost is $40,807.33.

Motion by Rick Rutherford (Belleville) and supported by Bill Turner (Brownstown) to approve payment to Veolia for $40,807.33 for fuel charges associated with the use of the IPS temporary emergency generators. Motion passed unanimously.

g. [ADDED] SRF Capital Project: Reconciliation (Deduct) of Weiss SRF Contract

A request to recommend Change Order (CO) No 6 to Weiss Construction associated with the SRF Project No 5420-01 was provided to the Board at the meeting (Attachment 13). The CO is for reconciliation of the contract price from $18,070,782.00 to $17,872,482.77. This is a decrease in fee of 8.56% (relative to Original Contract.)

Motion by Jim Taylor (Van Buren Township) and supported by Dustin Lent (Southgate) to allow DUWA’s System Manager and Accountant to recommend and approve the final

reconciliation (deduct) Change Order No 6 for the Weiss Construction Contract associated with SRF Project No 5420-01. Motion approved unanimously.

h. [ADDED] SRF Capital Project: Time Extension Request of HNTB SRF Contract

Project closeout is underway for the SRF Project No. 5420-01. A time extension request associated with HNTB’s engineering contract was provided to the Board at the meeting (Attachment 14). A time extension is necessary as warranty work associated with the ‘Valve Vault’ Valve may extend through November 2019. There is no change in contract maximum (cost) associate with this request.  The contract extension would change the end date from June 30, 2019 to November 30, 2019.

Motion by Dustin Lent (Southgate) and supported by Greg Mayhew (Wyandotte) to approve the Chair or Vice Chair to amend HNTB’s existing Engineering Contract to permit the time extension from June 30, 2019 to November 30, 2019 in association with the SRF Project No 5420-01. Motion approved unanimously.

  1. Contract Operator Update

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

a. May 2019 MOR

A May 2019 Monthly Operating Report (MOR) was provided ahead of the Board’s pre-meeting package (Attachment 15). Highlights from the summary and other updates included the following:

    • Solids inventory is under control.
    • Veolia is working with Waste Management to obtain better landfill disposal rates.
    • Veolia will be up to 48 FTEs in a couple of weeks. This will be the full staffing level.
    • UIS is on-site to complete electrical system rehabilitation work. This will be a several month process.
    • Preventative maintenance work is underway for several major equipment pieces, including the final clarifiers’ s sweeping mechanisms.
    • Condition assessments are underway, including pipe integrity testing.
    • Veolia has worked with the union to change weekend workday hours from 8-hours to 12-hours (eg 7a-7p). This will allow the plan to be better staffed.
    • CCTV work along Riverdrive and Goddard is complete with the exception of EC-6 area. A longer run cable is necessary. Veolia is identifying other companies to perform this work.
  1. Treasurer’s Report

a. FY2018 Audit Report

The Audit Report was distributed ahead of the pre-meeting package (Attachment 16). The report is from system transfer date to year end, December 31, 2018. Beth Bialy, of Plante Moran, provided overview of the audit findings.

A request for approval of the Audit was requested. The Board requested additional time to review. This action will be taken up at the August meeting.

b. Pending Invoices

Treasurer Jason Couture, of the City of Taylor, presented the invoice register with a request for payment. The invoice register was included in the pre-meeting package (Attachment 17). The invoice register included request for payment for 36 invoices for a total of $1,869,215.81. The request for payment is $1,828,408.48. Motion by Roberto Scappaticci (Romulus) and supported by Greg Mayhew (Wyandotte) to pay the invoices. Motion passed unanimously.

  1. Biosolids Project: Presentation on Progressive Design-Build Process 

Tim Muirhead, Vice President of Account Management, and Bill Hanley, Director of Capital Program Management, both of Veolia of North America, provided a 15-minute presentation on the progress Design-Build process and the role of a Capital Project Manager. Their PowerPoint is provided as Attachment 18.

  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: August 8, 2019 (9:00 AM; Taylor City Hall)

Vice Chairman Matakas (Allen Park) reminded the Board that the next meeting would be the Board Meeting on Thursday, August 8, 2019 (9:00 a.m. Taylor City Hall).

  1. Adjournment

There being no other business, Vice Chairman Matakas (Allen Park) 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 11:00 AM.

Meeting Minutes Prepared by:

Lambrina Tercala, DUWA System Manager

 

Attachments

  1. Meeting Agenda
  2. June 13, 2019 DUWA Board Meeting Minutes
  3. Summary of Easement Review and Procurement Process (by Fausone Bohn)
  4. System Manager Report for July 2019 Board Meeting (by OHM Advisors)
  5. Biosolids Project Update (by OHM Advisors)
  6. SCADA Split Transition Plan (by Eramosa)
  7. SCADA Split Proposal (by Eramosa)
  8. Request to Authorize Veolia for DSDS Meter Replacements @ PD-2 & PA-3
  9. Request to Authorize Veolia for Rebuild of Tunnel Pump No 2
  10. Request to Authorize Veolia for IPS Flow Meter Replacement
  11. Request to Authorize Veolia for Phase I HVAC services associated with repair of Boilers 1 & 2
  12. Request to Authorize Payment to Veolia for Fuel Charges Associated with CY2018 IPS Electrical Failure
  13. Request to Recommend Change Order No 6 to Weiss for SRF Project No 5420-01
  14. Request to Extend Contract Time to HNTB for engineering services associated with SRF Project No 5420-01
  15. Monthly Operating Report for May 2019 (by Veolia)
  16. DUWA FY2018 Audit Report (by Plante Moran)
  17. Invoice Register, dated July 3, 2019 (by DNS Financial Services)
  18. PowerPoint presentation regarding DUWA Biosolids Cake Disposition Thermal Drying Project, dated July 2019 (by Veolia)