DOWNRIVER UTILITY WASTEWATER AUTHORITY
FEBRUARY 13, 2020 MEETING MINUTES
Taylor City Hall City Council Chambers

1. Roll Call and Introductions

DUWA Chair Gail McLeod (Allen Park) called the meeting to order at 9:04 AM and asked for roll call to be taken. At the time of roll call, voting representatives were in attendance from 11 communities: Allen Park, Belleville, Brownstown Township, Dearborn Heights, Ecorse, Riverview, Romulus, Southgate, Taylor, Van Buren Township, and Wyandotte. A quorum (at least 7 members) was present.  

2. Approval of Agenda

Copies of the Agenda were made available prior to the meeting (Attachment 1). Motion by Rick Rutherford (Belleville) and seconded by Bill Turner (Brownstown Township) to approve the Agenda. Motion passed unanimously.

3. Approval of Minutes from January 16, 2020 Board Meeting

Copies of the meeting minutes from the January 16, 2020 Board Meeting were distributed by email prior to the meeting (Attachment 2). Motion by Doug Drysdale (Riverview) and seconded by Jim Taylor (Van Buren Township) to approve the minutes. Motion passed unanimously.

 4. Legal Update

Attorney Hayden provided the Legal Update. The following items were highlighted:

DUWA is working with Wayne County on their request for extension of the Shared Service Agreement for continued electrical power and physical access to the SCADA system.

• The Biosolids Dryer Facility Selection Committee has been focusing on recommending vendors for the proposed equipment and also design-construction.

 a. Legal Considerations for Vehicle Transfer

In the current contract between DUWA and Veolia, 14 existing vehicles obtained from Wayne County were transferred to DUWA and then provided for Veolia’s use.  It was recognized at the time of transfer that the actual fleet needs would be developed during the initial stages of implementation and that alternative approaches for addressing the vehicles would be evaluated. Alternatives for ownership or transfer were previously provided to the Board for consideration. Alternative 2, presented at the January meeting, was removed from consideration, and Alternative 3 was added. The alternatives were outlined in a memo provided in the pre-meeting packet (Attachment 3).

• Alternative 1 consists of transferring the existing vehicles to Veolia and having them take over responsibility for vehicle ownership and replacements going forward, including rolling stock. This alternative was approved at the January Board meeting.
• Alternative 3 consists of Veolia purchasing 6 vehicles from DUWA and the remaining 8 vehicles would be sold by DUWA to a third party or by auction.

In comparing the alternatives, it was noted that ultimately, Alternatives 1 and 3 have the same ultimate outcome for DUWA, in that Veolia will be responsible for vehicle ownership and replacement. Alternative 3 takes the form of a more traditional transaction; however, proceeding with this Alternative would cost DUWA more than Alternative 1. Alternative 3 would also require more bookkeeping and active participation by the System Manager and the Board in the auction sale, and would provide no guarantee that the vehicles will sell at the listed Kelly Blue Book price points. Under Alternative 3, DUWA would also still be liable for the insurance until the vehicles are sold. There was some discussion on the fair consideration for the Alternative 1, due to turn over of the vehicles without a sale price. Attorney Hayden confirmed that both Alternatives 1 and 3 are legally supported. After additional discussion, the Board reaffirmed their January motion.

Motion by Dustin Lent (Southgate) and supported by Jim Taylor (Van Buren Township) to approve turnover of the existing fleet vehicles to Veolia effective February 28, 2020 and authorize the Chair or Vice Chair to execute Attachment 6 to Veolia’s O&M Agreement and allow the System Manager to assign vehicle titles to Veolia. Motion passed with all in favor.

5. System Manager Update

System Manager Lambrina Tercala, 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 the Biosolids Dryer Facility Project Delivery (Attachment 5).

a. System Manager Report

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

• The HMI (Human Machine Interface) on DWTF’s emergency generators has failed. Veolia is working with the manufacturer and Veolia’s electrical SME to find a simpler solution. Remedial opportunities will be presented to the Technical Committee once they are developed.
• NPDES Requirements: EGLE has requested NPDES permit holders perform a Vulnerability Assessment. DUWA will work with Veolia on best means to proceed.
• Construction Projects
  • SCADA Split
    • Implementation is awaiting Wayne County comments as it relates to SWRDDD monitoring needs.
    • OHM is working on receiving quotes from contractors for the misc. site work and electrical efforts.
  • An agreement with SWRDDD on the Alkali Sewer Repair flow diversion is expected to be executed by the SWRDDD at their next meeting. However, their next meeting has not yet been schedule.
• Flow Metering and Collection System
  • Individual community meetings on flooding prevention have been held with Allen Park, Ecorse, and Lincoln Park and have been very beneficial and informative.
  • DUWA is receiving a SEMCOG reimbursement grant for GIS updates as it relates to infrastructure under federally-owned roads. OHM will work with the Technical Committee on their desires for GIS updates.
• Land Beyond DWTF: A property owner is interested in providing a long-term lease for a 25-acre parcel of land near the DWTF. DUWA does not have immediate needs for this land, but it will be up for discussion at a later Board meeting.

b. Biosolids Update

• DUWA and Veolia toured GLWA’s NEFCO (biosolids) facility.
• The Selection Committee will provide recommendation of dryer manufacturer and the Design-Build Entity (DBE), later in the agenda.
• Two out of the three interested DBE’s agreed that DUWA’s cost estimate, inclusive of the contingency, is sufficient.
• PFM and Plante Moran are working on the cash flow model for the WIFIA Application. As of now, it appears, 51% of the project will be financed with existing cash reserves and the other 49% will be financed by the WIFIA low-interest loan.

6. Requests for Authorizations

System Manager Tercala provided the following requests to the Board.

a. WIFIA Loan Application

DUWA’s team of Professionals continue to work on developing the WIFIA Loan Application and expect to submit the Application to EPA by March 2020. The application must include a non-refundable fee. The fee for DUWA’s application is $100,000, which represents an amount equal to 0.5% of the minimum threshold project cost to apply for a WIFIA loan ($20M). In addition to the application fee, the application will require signature and certification by DUWA once the legal and financial advisors recommend the document for submittal.

Two motions proceeded for submittal of the WIFIA Application after the discussion.

Motion by Roberto Scappaticci (Romulus) and supported by Keith Boc (Taylor) to release the application fee to the US EPA in the amount of $100,000 associated with DUWA’s Biosolids Dryer Facility and Other Critical Projects application. Motion passed unanimously.

Motion by Rick Rutherford (Belleville) and supported by Roberto Scappaticci (Romulus) to allow the Chair or Vice Chair to sign and certify the necessary paperwork to submit a complete WIFIA application to the EPA. Motion passed unanimously.

b. Veolia as Capital Project Manager for Biosolids Project

In August 2019, DUWA authorized Bill Hanley, of Veolia, to assist with procurement services associated with retaining a Design-Build Entity (DBE). Mr. Hanley provided great value to DUWA’s team with his design-build and construction experience. Veolia prepared a proposal (Attachment 7) to continue to assist DUWA with the Biosolids Dryer Facility project. The proposal is for capital project management (CPM) services associated with Phase I of the project. The contract total is $99,910 and includes a subconsultant for third-party validation of the DBE’s guaranteed maximum price. Veolia would bill at a combined hourly rate, not-to exceed fee based on the proposed schedule.

Motion by Jim Taylor (Van Buren Township) and supported by Keith Boc (Taylor) to authorize the Chair or Vice Chair to authorize Veolia for Phase I CPM services associated with the progression Design-Build Biosolids Dryer Facility project at a not-to-exceed cost of $99,910. A roll call vote was taken. The motion passed unanimously with all those in attendance, for a pass rate of 83.01%.

b. Selection Committee Recommendation for Dryer Manufacturer

The Selection Committee, comprised of DUWA Board members, DUWA legal counsel, and NEFCO staff, posted a Request for Proposal (RFP) for a dryer manufacturer. The bid was a competitive bid with a qualification-based selection. Four responses were received.

The Selection Committee independently reviewed and scored the proposals in accordance with the RFP. Two of the four highest ranked bidders were invited for interviews, and these included Huber and Kruger. After further review and consideration, the Selection Committee felt that both manufacturers met the needs of the project, and thus the delivery schedule and monetary costs were more closely considered. Ultimately, the Selection Committee recommended Kruger as the dryer manufacturer. Select portions of Kruger’s proposal are provided in Attachment 8.

Motion by Keith Boc (Taylor) and supported by Roberto Scappaticci (Romulus) to accept the recommendation of Kruger as the Dryer Manufacturer for the Biosolids Dryer Facility project and commence contract negotiation efforts with the intent to award contract in March 2020. Motion passed unanimously.

c. Selection Committee Recommendation for Design-Build Entity

The Selection Committee, comprised of DUWA Board members, DUWA legal counsel, and DUWA’s Capital Project Manager for the Biosolids Dryer Facility, posted a Request for Proposal (RFP) for a Design-Build Entity (DBE). The bid was a competitive bid with a qualification-based selection. Three responses were received.

The Selection Committee independently reviewed and scored the proposals in accordance with the RFP. Each DBE was invited for an interview due to their close scores and uniqueness of offerings.  After further review and consideration, the Selection Committee recommended Walsh as the DBE. Walsh will use Wade Trim, Tight & Bond, and Osborn Engineering as its subcontractors. Select portions of Walsh’s proposal are provided in Attachment 9.

Motion by Doug Drysdale (Riverview) and supported by Roberto Scappaticci (Romulus) to accept the recommendation of Walsh as the DBE for the Biosolids Dryer Facility project and commence contract negotiation efforts with the intent to award contract in March 2020. Motion passed unanimously.

d. Veolia’s DWTF Influent Sample Relocation Proposal

A proposal was provided in the pre-meeting packet (Attachment 10) for Veolia to furnish the necessary equipment for the relocation of the influent sample station at the DWTF. The influent sample station must be void of recycled wastewater to satisfy EGLE requirements and to ensure accurate sampling for DWTF data; however, the station is currently on a line that contains recycled wastewater from the DWTF. Original projections indicated a relocation cost upwards of $250k at the time of system transfer, but Veolia has done significant due diligence to value engineer a lower cost solution of $60,000. While the cost is $10,000 more than what is budgeted for Q1/Q2, the overall cost is considerably less. DUWA’s underbudget, small capital projects can accommodate the increase in Q1/Q2 spending. This request was presented to the Technical Committee on January 30, 2020 and was recommended for approval by the Committee.

Motion by Rick Rutherford (Belleville) and supported by Greg Mayhew (Wyandotte) to approve Veolia for a not-to-exceed fee of $60,000 associated with furnishing the necessary equipment for the relocation of the influent sample station. Motion passed unanimously.

e. Veolia’s PFAS/PFOA Sample Costs

As required by EGLE, Veolia completed periodic PFAS/PFOA sampling at the DWTF and within the collection system. Veolia incurred expenses for the sampling and analysis efforts. Samples were taken from September 2018 through September 2019 and cost a total of $7,229 per their invoice (Attachment 11). This cost is a passthrough, with no markup.  

Motion by Roberto Scappaticci (Romulus) and supported by Rick Rutherford (Belleville) to approve Veolia for a lump sum fee of $7,229 for reimbursement of September 2018 through September 2019 PFAS/PFOA costs. Motion passed unanimously.

7. Contract Operator Update

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

a. Staff Spotlight: Kurian Joychan, IPP Manager; Larry Koch, Regional Engineer

Veolia’s IPP Manager, Kurian Joychan, greeted the Board. Mr. Joychan oversees the industrial pretreatment program and routinely works with DWTF’s industrial users. He also oversees the DWTF’s Laboratory.

Larry Koch, a Regional Engineer for Veolia, was also unexpectedly in town and was asked to attend the Board Meeting by Veolia Program Manager, Kelly Irving. Mr. Koch performs much of the leg work for small capital projects and compiles costs as well as the write-ups that the Board reviews. He also supports Veolia’s projects in Milwaukee and helped with the rebuilding efforts in Louisiana after Hurricane Katrina.

b. December 2019 MOR

A December 2019 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting packet (Attachment 12). Highlights from the summary and other updates included the following:

• The DWTF is running well and in compliance.
• The DWTF bypassed two times in CY2019, which is likely a record low number.
• Influent flow meters have been installed at the Influent Pumping Station (IPS).

Program Manager Irving commented on the recent rain event in January noting that they almost had to bypass, but remained within capacity limits.

8. Treasurer’s Report

DUWA’s Treasurer Jason Couture (Taylor) was unable to attend the meeting. Doug Drysdale (Riverview; DUWA Accountant via DNS Financial Services) provided the Treasurer’s Report.

a. Quarterly Financial Statement – 2019Q4

Accountant Drysdale presented the unaudited revenue and expenditure report as of December 31, 2019. There were no comments or questions to the calendar.

b. Pending Invoices

Accountant Drysdale presented the invoice register for a request for payment. The invoice register was provided in the pre-meeting packet (Attachment 13). The invoice register included 33 invoices with 33 invoices due for a total of $1,520,864.48. Motion by Roberto Scappaticci (Romulus) and supported by Dave Flatten (Ecorse) to pay the invoices. Motion passed unanimously.

9. Public Comment

There was no public comment.

10. Other Business

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

11. Next Meeting Date: Thursday, March 12, 2020 (9:00 AM; Taylor City Hall)

Chairperson McLeod (Allen Park) reminded the Board that the next meeting would be the Board Meeting on Thursday, March 12, 2020 (9:00 a.m. Taylor City Hall).

12. Adjournment

There being no other business, Chairperson McLeod (Allen Park) announced that a motion to adjourn would be in order. Motion by Dustin Lent (Southgate) and supported by Doug Drysdale (Riverview) to adjourn the meeting.  Motion passed unanimously at 11:04 AM.

Meeting Minutes Prepared by:
Lambrina Tercala, OHM Advisors, DUWA System Manager

Attachments

1. Meeting Agenda
2. January 16, 2020 DUWA Board Meeting Minutes
3. DUWA Vehicle Turnover Memo – Additional Alternative
4. System Manager Report for February 2020 Board Meeting (by OHM Advisors)
5. Biosolids Dryer Facility Project Delivery
6. Request to Approve WIFIA Loan Application Fee and Certification of Application
7. Request to Engage Veolia for Phase I CPM Services for the Biosolids Project
8. Request to Approve Recommendation of Biosolids Dryer Manufacturer
9. Request to Approve Recommendation of Biosolids Dryer Design-Build Entity
10. Request to Approve Fees Associated with Influent Sampling Line Relocation
11. Request to Reimburse Veolia for PFAS/PFOA Sample Costs
12. Monthly Operating Report for December 2019 (by Veolia)
13. Balance Sheet for 2019 and Invoice Register, dated February 5, 2020 (by DNS Financial Services)