2019 September – Board Meeting Minutes

 

DOWNRIVER UTILITY WASTEWATER AUTHORITY

SEPTEMBER 12, 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 9:03 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, 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 (Attachment 1). Motion by DUWA Vice Chair Bill Matakas (Allen Park) and seconded by Doug Drysdale (Riverview) to approve the Agenda. Motion passed unanimously.

  1. Approval of Minutes from August 8, 2019 Board Meeting

Copies of the meeting minutes from the August 8, 2019 Board Meeting were distributed by email prior to the meeting (Attachment 2). Motion by Jim Taylor (Van Buren Township) and seconded by Dustin Lent (Southgate) to approve the minutes. Motion passed unanimously.

  1. Election of Interim Secretary of 2019

DUWA Chair Rick Sollars (Taylor) presented the Election of Interim Secretary memo that was provided in the pre-meeting package (Attachment 3). The memo noted that DUWA Secretary Matt Coppler (Lincoln Park) would be leaving Lincoln Park in mid-September, and a new Secretary required election. Dustin Lent (Southgate) volunteered for the position.

Motion by Rick Rutherford (Belleville) and seconded by Dave Flatten (Ecorse) to elect Dustin Lent as DUWA Board Secretary for the remainder of CY2019. Motion passed unanimously.

  1. Legal Update

DUWA Attorney Andrea Hayden, of Fausone Bohn, provided the Legal Update.

  • Shared Service Agreement: As mentioned at the last Board meeting, the current Shared Service Agreement between DUWA and Wayne County will expire soon. An amendment to the Agreement for a 6-month extension is expected to be provided in the next two weeks. The Fausone Bohn team is working on comments to the Agreement. Further, after expiration of the extended Agreement, Wayne County is seeking to establish an Access Agreement to the DWTF for the next 1-3 years. The purpose of the Access Agreement is to 1) operate the SCADA system after DUWA splits from the existing system and 2) remove WC-owned records from the DWTF. The agreement would be a basic Access Agreement to complete these tasks. Ms. Hayden requested a motion to allow the Chair to authorize the two (separate) Agreements once they are to the satisfaction of DUWA’s General Counsel and System Manager.

Motion by Vice Chair Bill Matakas (Allen Park) and supported by Roberto Scappaticci (Romulus) to allow the Chair to authorize the extension of the Shared Service Agreement and future Access Agreement once they are to the satisfaction of DUWA’s General Counsel and System Manager. Motion passed unanimously.

  • Amendment to Veolia’s O&M Contract: A proposed third amendment to Veolia’s O&M Contract was provided in the pre-meeting packet (Attachment 4). The intent of the amendment is to extend the Agreement’s termination date, align the Agreement’s contract years with the calendar year, and adjust payment calculations accordingly.

Motion by Dustin Lent (Southgate) and supported by Vice Chair Bill Matakas (Allen Park) to authorize the third amendment. Motion passed unanimously.

  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 5), as well as a summary on the DWTF’s Basis of Design to minimize blending events (Attachment 6), and the biosolids efforts (Attachment 7).

a. System Manager Report

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

  • NPDES Permit Requirements: EGLE recently request review of DWTF’s local limits. The local limits define what parameters industrial users need to consider and/or monitor as it relates to the quality of discharged wastewaters. Based on a local limit sampling event, phosphorus and copper may require reduction (ie, lower limits). Veolia is developing a list of industrial users that may be impacted by the lower local limit.
  • Construction Projects: The team is coordinating with EGLE to close the SRF loan, and final decisions are being made on warranty work. Greg Tupancy, of Wayne County, has supported closure of the construction project since system transfer, via the Shared Service Agreement. Greg is expected to retire by the end of September.
  • SCADA system: Eramosa has developed draft design drawings, which have been reviewed by Veolia. Comments have been provided to Eramosa for inclusion in the final design.
  • Flow Metering & Collection System: The next Flood Prevention Team meeting will be Tuesday, September 17. The team was brought together based on the recent flooding event of May 1. All community participants are welcome to attend.
  • DWTF Performance:
    • The DWTF is running well.
    • The Technical Committee has reviewed the HVAC improvements in detail. This relates to the three-phase approach for transitioning from boilers to force air heating. The Technical Committee agreements that Phase 2 work should be accounted for in next year’s budget process.
  • Files: DUWA is currently renting space in a SWRDDD-owned facility across the street. Veolia feels they can better serve DUWA with efficiencies by moving the spare parts located in this rented facility back to the DWTF. As such, the lease is expected to end by April of next year. A renewal will not be requested.

b. Blending Basis of Design Submittal

System Manager Kaunelis noted the following highlights related to the Blending Basis of Design Submittal: 

  • The scope of the blending work remains similar to what was previously communicated. The intent of the work is to minimize wet weather blending events from DWTF. Some elements of the Basis of Design are very well defined. As such, there are items that Veolia may be able to self-perform, which will reduce the cost and/or time to implement.
  • The Basis of Design report was reviewed with the Technical Committee. No comments were received. The report was submitted to EGLE on August 30, 2019. A summary of the costs for the options was provided in the report; the total cost is less than $1M. The implementation timeline assumes design to be completed by November 2020 and construction by September 2022. 

c. Biosolids Update

  • OHM and Veolia’s Capital Projects Team are working on development of two requests for proposal (RFPs).
    • Dryer Equipment RFP:
      • Three vendors were initially identified as potential bidders. Each vendor was contacted and also visited the site to share information associated with their equipment. A fourth vendor that believes they can provide acceptable equipment also approached the team. If the fourth vendor meets the intent of the RFP, then it is possible they will be considered for selection. This fourth bidder heats the biosolids using hot water. A certified boiler technician is typically required for hot water service. The RFP will require there is no change to Veolia’s staffing needs (meaning, no extra certification requirements for their staff) to operate and maintain the equipment.
      • An Evaluation Committee has been assigned. It includes OHM, three community representative volunteers, and a representative from NEFCO. NEFCO is GLWA’s Dryer facility Contract Operator.
    • Progressive Design-Build RFP:
      • Veolia prepared a draft RFP for circulation to DUWA’s Professional Team – a second draft is expected shortly.
      • Veolia and OHM have been generating interest in potential bidders. There is very high interest in the project.
    • Evaluation Committees: Additional volunteers are welcome.
    • Schedule for RFP Distribution:
      • The intent of OHM, Veolia, and Fausone Bohn’s teams are to circulate draft RFPs to the Board, Technical Committee, and potential bidders within two weeks for review and comment. This process is expected to be helpful to resolve preliminary comments.
    • Advertising: The RFP will be posted to DUWA’s website. A courtesy link (to DUWA’s website) will also be provided on BidNet for the RFP.

d. Informational: SEMCOG Designated Management Agency Fee

System Manager Kaunelis informed the Board that SEMCOG has revised their approach for fee structure. Detail on this matter was provided in the pre-meeting package (Attachment 8). The revised approach provided a 14% reduction to DUWA from previous years. DUWA’s budgets will incorporate this fee going forward.

  1. Requests for Authorizations

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

a. Insurance Renewal 

An outline of the current status of the insurance market and rate increase projections was provided at the August Board meeting. Firm costs for insurance policy renewals and optional coverage was provided to the Board the day of the meeting (Attachment 9). Ms. Tercala presented the renewals and noted 15-month terms were provided, where available by the Carrier, as the rates were recommended as being favorable by Aon. Ms. Tercala requested the Board provide recommendation for 1) optional terrorism coverage, and 2) the Inland Marine insurable limit ($5M or $10M). Based on discussions, the Board stayed consistent with CY2019 insurance elections. Thus, terrorism coverage was rejected and the Inland Marine insurable limit remained at $5M. Based on these elections, the policy costs are as follows:

  • Property: $337,960 (15-month term)
  • Inland Marine: $78,875 (15-month term)
  • Liability: $129,560 (12-month term)

Motion by Dustin Lent (Southgate) and supported by Dave Flaten (Ecorse) to authorize the Chair or Vice Chair to execute Aon’s insurance proposal associated with the presented Liability, Inland Marine, and Property coverages. Motion passed unanimously.

The following terms applied to the motion:

  • Liability coverage is for a 12-month renewal and the terrorism premium was rejected.
  • Inland Marine coverage is for 15-month renewal with a $5M limit and the terrorism premium was rejected.
  • Property coverage is for 15-month renewal and the terrorism premium was rejected.

b. Aeration Sensor Replacement

A request to authorize the purchase of aeration sensor equipment was provided in the pre-meeting package (Attachment 10). As noted in the request, DUWA’s adopted Rate Package includes a budget of $50k for lighting upgrades for CY2019 Q3/Q4. At the time of transfer, much of the DWTF had inoperable lamps that required replacement for safety reasons. Veolia has worked to salvage available spare parts located across DWTF storage areas to bring the DWTF up to safety standards for adequate lighting. Thus, the current need for lighting upgrades in Q3/Q4 is no longer an immediate priority. These Q3/Q4 funds can be used for more critical repairs.

Veolia’s operation team identified that most of the oxygen and LEL sensors associated with the secondary treatment’s aeration trains are no longer working and require complete replacement. These sensors are critical to the operation team’s ability to assess the treatment efficiency through the aeration trains, as well as employee safety related to hazardous atmospheres.

Veolia coordinated with two suppliers for quotes for equipment replacement. Quotes were returned and include the following:

  • Premier Safety, Chesterfield, MI: $123,100
  • Forberg Scientific, Inc, Valley View, OH: $49,157.15

The pricing from Forberg was much more competitive because of the discount pricing Veolia is able to achieve due to their large footprint in the water/wastewater market. Forberg’s scope is for the equipment, installation, and startup/commissioning, but excludes sales tax. Forberg’s pricing aligns with the available funds previously earmarked for the lighting upgrade. The work qualifies for Veolia’s contractual markup of 10% to cover their additional costs. Ms. Tercala requested the Board to approve Veolia to procure the services from Forberg because of the critical nature of these sensors.

Motion by Rick Rutherford (Belleville) and supported by Jim Taylor (Van Buren Township) to approve Veolia for a not-to-exceed cost of $57,000 to engage Forberg’s and proceed with the replacement of the oxygen and LEL sensors. Motion passed unanimously.

  1. Contract Operator Update

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

a. Staff Spotlight: Sharisse Dixon, Office Manager 

Program Manager Irving introduced Sharisse Dixon, Office Manager, to the Board. Ms. Dixon is a long-time resident of the Downriver area. Ms. Dixon is responsible for managing administrative tasks at the DWTF. 

b. July 2019 MOR

A July 2019 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting package (Attachment 11). Highlights from the summary and other updates included the following:

  • A large safety audit was completed at the end of July.
    • Lighting upgrades and fall protection work was completed in coordination with the audit.
    • Teams are reviewing their PPE and training needs as well as written procedures.
  • Performance of DWTF was stable for the months of July and August.
    • Flows are down to 30-50 MGD, other than yesterday’s rainfall. Yesterday, the DWTF received 2” of rain, but it appears a majority of the service area received only 1”. The DWTF handled the flows well, with no bypass events. Part of this success is due to the Operations Team planning (ahead of storms).
  • MissDig Pilot Program is running smoothly. In average, DSDS received approximately 500-600 locates per month. The biggest challenge in deployment of the program is covering the large geography of the service area. A full time FTE is required because of this.
  • CCTV:
    • To complete the EC6 stretch at the Riverdrive Interceptor, the team is planning to enter the sewer and review the orifice plate from both sides, once flows subside.
    • An incident occurred last week, due to an inexperienced CCTV team (Veolia’s subcontractor), who pushed debris body into a storm manhole in Belleville’s local system. Fortunately, Belleville representatives were nearby and identified the error almost immediately, and thus, not much was pushed/discharged. The incident has been recorded with appropriate parties.
  • Staffing: Positions are mostly filled. An administrative professional was recently eliminated; the position is expected to be replaced with a Maintenance Technician or Laborer. One Maintenance Technician position remains open.
  • Industrial Pretreatment Program (IPP):
    • Veolia staff recently met with EGLE to review the IPP.
    • A recent sample of DWTF’s effluent was slightly elevated. Because of this, EGLE has requested DWTF complete quarterly sampling (up from semi-annual).
    • As previously reference, local limits review is ongoing. Copper and phosphorus limits are expected to be reduced. A reduction in the phosphorus limit is timely as of January 1, the DWTF’s discharge limit will be reduced from 1 mg/L to 0.7 mg/L.
  1. Treasurer’s Report

Treasurer Jason Couture (Taylor) provided the Treasurer’s Report.

a. Pending Invoices 

Treasurer Couture presented the invoice register for a request for payment. The invoice register was provided in the pre-meeting package (Attachment 12). The invoice register includes a request for payment for 15 invoices for a total of $406,821.41. This is a lower dollar month because the invoices exclude Veolia’s monthly fees due to a schedule challenge with Veolia’s finance team. The monthly fees will be included in next month’s invoice run. The current request for payment is $406,821.41. Motion by Vice Chair Bill Matakas (Allen Park) and supported Jim Taylor (Van Buren Township) to pay the invoices. Motion passed unanimously.

  1. Public Comment

There was no public comment.

  1. Other Business

System Manager Kaunelis reminded the Board of the Flood Prevention Meeting at DWTF on September 17, 2019 at 2:30 pm.

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

  1. Next Meeting Date: October 10, 2019 (9:00 AM; Taylor City Hall)

Chairman Sollars (Taylor) reminded the Board that the next meeting would be the Board Meeting on Thursday, October 10, 2019 (9:00 a.m. Taylor City Hall). It was noted the agenda included as part of the pre-meeting package (Attachment 1) incorrectly noted the Board date as October 12 rather than October 10.

  1. Adjournment

There being no other business, Chairman Sollars (Taylor) announced that a motion to adjourn would be in order. Motion by Dustin Lent (Southgate) and supported by Rick Rutherford (Belleville) to adjourn the meeting.  Motion passed unanimously at 10:30 AM.

Meeting Minutes Prepared by:

Lambrina Tercala, DUWA System Manager

 

Attachments

  1. Meeting Agenda
  2. August 8, 2019 DUWA Board Meeting Minutes
  3. Request for Election of Interim Secretary for 2019
  4. Proposed Third Amendment to Veolia’s O&M Contract
  5. System Manager Report for August 2019 Board Meeting (by OHM Advisors)
  6. Blending Basis of Design Update (by OHM Advisors)
  7. Biosolids Project Update (by OHM Advisors)
  8. 2019-2020 Designated Management Agency Service Charges Memo, dated July 30, 2019 (by SEMCOG)
  9. Request for Insurance Policy Renewal (by OHM Advisors & Aon)
  10. Request to Authorize Veolia for Procurement of Aeration Sensor Equipment (OHM Advisors)
  11. Monthly Operating Report for July 2019 (by Veolia)
  12. Invoice Register, dated September 5, 2019 (by DNS Financial Services)