DOWNRIVER UTILITY WASTEWATER AUTHORITY

AUGUST 13, 2020 MEETING MINUTES

VIRTUAL MEETING (due to COVID19)

1. Roll Call and Introductions

DUWA Chair Gail McLeod (Allen Park) called the virtual meeting to order at 9:00 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, Dearborn Heights, Ecorse, Lincoln Park, 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 Jim Taylor (Van Buren Township) and supported by Dustin Lent (Southgate) to approve the Agenda.

Due to the meeting being held virtually, a roll call vote was recommend by DUWA’s attorney for Board actions. A roll call vote was taken and the motion passed with 88.8% of the vote (affirmative vote by all attending members). Motion passed unanimously.

3. Approval of Minutes from July 9, 2020 Board Meeting

Copies of the meeting minutes from the July 9, 2020 Board Meeting were distributed by email prior to the meeting (Attachment 2). Motion by Roberto Scappaticci (Romulus) and supported by Doug Drysdale (Riverview) to approve the minutes. A roll call vote was taken and the motion passed with 88.8% of the vote (affirmative vote by all attending members). Motion passed unanimously.

4. Legal Update

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

a. General Counsel Monthly Report

Attorney Hayden provided a verbal summary of the monthly legal update. A written summary was provided in the pre-meeting Board packet (Attachment 3). Attorney Hayden noted the following highlights from the monthly legal update:

• Fausone Bohn is continuing to assist with the preparation of the WIFIA loan materials and is ensuring all requirements are met regarding the Davis-Bacon Act and American Iron and Steel Act.
• Bylaws allow for virtual/remote participation in DUWA board meetings as long as all deliberations and discussions can be heard by the public (Attachment 6). Roll call voting is recommended to ensure full transparency during voting.
• Details are being finalized for the SWRDDD Discharge Agreement (Attachment 5). A refined Agreement will be provided to the Board at a future meeting date.
• The SWRDDD Bypass Agreement (Attachment 4) for the Alkali sewer project has been approved by Southgate-Wyandotte, and there will be no charge for bypassing. A construction permit will need to be issued by Wayne County, but Southgate-Wyandotte can enforce the permit terms. Wayne County is reviewing the plans and specifications, and permit issuance is expected within 30 to 60 days. DUWA will pay a permit fee to SWRDDD consistent with typical Wayne County construction permit fees.

Motion by Roberto Scappaticci (Romulus) and supported by James Krizan (Lincoln Park) to authorize the Chair to execute the Bypass Agreement between DUWA and the Southgate Wyandotte Relief Drains Drainage District once terms have been negotiated to the satisfaction of the general counsel. A roll call vote was taken and the motion passed with 77.2% of the vote. Dustin Lent (Southgate) abstained from voting as he is on the Southgate-Wyandotte Board.

5. 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 7).

a. System Manager Monthly Report

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

• EGLE has requested additional information for their review of the Control Measures C memorandum. Responses to their request are under development.
• The 60% design submittal is nearing completion for the Biosolids Dryer Facility project. The Guaranteed Maximum Price (GMP) is expected to be delivered in September. Current indications show that the project cost is relatively in line with what was expected at this point in the project.
• Roof inspections were completed by PSI and they prepared a report defining next steps. Some immediate repairs were identified to be completed this fall totaling about $25k. Short-term replacements are also necessary totaling about $400k which exceeds the budgeted amount for this fiscal year, but may be able to be spread over two fiscal years.
• The July 10^th rain event produced localized flooding in the Southgate-Wyandotte area and on the plant site. There are some concerns that there may be blockages in the Southgate-Wyandotte outlet, and this is now being analyzed by Southgate-Wyandotte.
• Responses are due soon for the Rate Methodology RFP. Dick Hinshon (former DUWA Technical Advisor) has been secured as a part-time employee for OHM Advisors and will sit on the Selection Committee to assist in selecting a rate consultant and rate method review process.

Roberto Scappaticci (Romulus) asked what the estimated $400k includes regarding the roof repairs/replacements. System Manager Kaunelis noted the report and scope of work will be provided at the next Technical Committee meeting.

b. Biosolids Dryer Facility Project

The biosolids dryer facility monthly progress report is provided in the pre-meeting Board package (Attachment 8). The 60% design submittal from the DBE team is nearing completion. The Guaranteed Maximum Price (GMP) is expected to be received in September. The Technical Committee will review both the 60% design submittal and GMP at its September meeting. During design, a building addition was added to the outside of the facility to accommodate the thermal oil skids. This addition is covered in the risk register’s contingency cost.

6. Requests for Authorizations

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

a. UPS Replacements

Uninterruptible Power Supplies (UPSs) provide emergency power to a load when input power fails. Veolia determined the amount of battery backup required and is requesting to replace 25 UPSs (Attachment 9). Veolia has worked with their equipment provider to procure the UPSs at a substantial discount compared to street pricing. This work was planned and budgeted for in the current FY Small Capital Budget at a cost of $15k. Veolia is requesting $12,813.40 for this work which includes equipment cost and overtime labor hours, and the markup will be waived. This project is not being considered for WIFIA funding due to its smaller dollar amount. This project was also recommended by the Technical Committee.

Jim Taylor (Van Buren Township) asked how Veolia came up with 25 UPS replacements. Kelly Irving (Veolia’s Program Manager) responded that each location was analyzed to determine a “right size” number of units needed based on what was really required.

Motion by Keith Boc (Taylor) and supported by Dustin Lent (Southgate) to authorize Veolia for a not-to-exceed fee of $12,813.40 in association with UPS replacements, per their July 29, 2020 proposal. A roll call vote was taken and the motion passed with 88.8% of the vote. Motion passed unanimously with all attending members.

b. DAF Improvements for Warehouse Storage

Veolia now uses the DAF (Dissolved Air Flotation) Building for warehouse storage. Reuse of the DAF Building presents a safety issue as there are long, deep trenches throughout the building that had been used to support the former DAF process treatment train. Veolia seeks to fill in the trenches to improve worker safety (Attachment 10). This project was not planned nor budgeted for in the FY Small Capital Budget and is not WIFIA loan eligible, but can be paid for via the rent credit revenue provided by Veolia to DUWA.

Two contractors submitted bids to provide backfill and compaction within the trenches and add a concrete topper. RJ&J revised their quote after fixing a calculation error in the square footage and is the apparent low bidder. Multiple Board commissioners noted that they have had previous positive experiences working with RJ&J Enterprises. This project was also recommended by the Technical Committee at a cost plus 10%.

The motion was revised (from that included in the pre-meeting packet) to award the project to RJ&J Enterprises at a cost of $13,440.90. Motion by Jim Taylor (Van Buren Township) and supported by Roberto Scappaticci (Romulus) to authorize Veolia for a not-to-exceed fee of $13,440.90 in association with improvements at the DAF Building, with RJ&J Enterprises as Veolia’s subcontractor. A roll call vote was taken and the motion passed with 88.8% of the vote. Motion passed unanimously with all attending members.

c. Walsh Phase 1 CO #1: No Fee, Contract End Date Extension

DUWA’s contract with Walsh projected a submittal date of September 4, 2020 for the Phase 1 GMP. Based on a revised schedule received by Walsh during contract negotiations, the revised Phase 1 GMP date was projected as September 18, 2020. This date was not modified in the contract. A no cost change order is requested for approval to align the contract with the proposed contract delivery period (Attachment 11). Walsh will provide an updated schedule for Phase 2 to determine whether this revised date will affect Phase 2 delivery.

Motion by Rick Rutherford (Belleville) and supported by Keith Boc (Taylor) to authorize the Chair or Vice Chair to sign Walsh’s Change Order No. 1 for a no cost change order to extend the Phase 1 GMP date from September 4 to September 18, 2020. A roll call vote was taken and the motion passed with 88.8% of the vote. Motion passed unanimously with all attending members.

Separately, System Manager Tercala informed the Board that the American Council of Engineering Companies (ACEC) is looking for award nominations for their annual awards consideration. OHM Advisors intends to advance the award nomination for DUWA for its restructuring of the utility to provide long-term success. The Intent to Nominate form is due soon and OHM will work with the Chair or Vice Chair to sign the document. Marketing will be performed by OHM and nomination materials may include interviews, quotes, and pictures of community representatives.

7. Contract Operator Update

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

a. June 2020 MOR

The June 2020 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:

• There were no compliance violations in June.
• Flows were relatively low, and no bypass events occurred.
• Veolia is currently hiring for a collection system operator and a warehouse laborer.
• Many maintenance activities were completed in June due to the dryer weather. Maintenance was completed on the secondary clarifier, aerated grit fine screens, belt conveyer for the fine screens, and the primary settling tanks, among others.
• The July 10^th rain event caused localized flooding at the plant and also street flooding near SWRDDD’s Pump Station No 5.

8. Treasurer’s Report

a. Quarterly Financial Statement – 2020Q2

Doug Drysdale (Riverview) presented the Quarterly Financial Statement (Attachment 13). The balance sheet includes all transactions up to June 30, 2020. Some communities have since paid their invoices, but these are not reflected on this balance sheet. Other items are mostly in line with what is expected at this time of the year. The IPP surcharges are a little lower than usual due to AmeriCane Sugar being out of business. NRU fees are now being reported by all communities. Monthly interest earnings have decreased due to COVID-19 impacts on the treasury rates which have drastically decreased. Expenditures are slightly below 50% which is what is expected halfway through the year. A significant portion of the Capital Outlay is attributed to the Biosolids Dryer project, which is currently at $1.3M spent. Overall, the net revenue is about $841k less than the expenditures.

b. Pending Invoices

DUWA’s Treasurer Jason Couture (Taylor) presented the invoice register for a request for payment. The invoice register was provided in the pre-meeting packet (Attachment 17). The invoice register included 25 invoices due for a total of $584,923.27. Largest invoices included those to Veolia for flow monitoring services and the O2/LEL project, Walsh for their effort on the biosolids project, OHM for System Manager services, and Wyandotte for utility services. System Manager Tercala noted that the monthly invoice for Veolia’s O&M services is not included in this invoice register, but will be included for approval in next month’s invoice register. Motion by Rick Rutherford (Belleville) and supported by James Krizan (Lincoln Park) 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, September 10, 2020 (Virtual via Zoom)

Chairperson McLeod (Allen Park) reminded the Board that the next meeting would be on Thursday, September 10, 2020, and would be conducted virtually via Zoom.

12. Adjournment

There being no other business, Chairperson McLeod (Allen Park) announced that a motion to adjourn would be in order. Motion by Jim Taylor (Van Buren Township) and supported by Dustin Lent (Southgate) to adjourn the meeting. A roll call vote was taken and the motion passed with 88.8% of the vote at 10:01 AM. Motion passed unanimously with all attending members.

Meeting Minutes Prepared by:

Mackenzie Johnson, OHM Advisors, Engineer

Meeting Minutes Reviewed by:

Lambrina Tercala, OHM Advisors, DUWA System Manager

 Attachments

1. Meeting Agenda
2. July 9, 2020 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone Bohn)
4. Southgate Wyandotte Relief Drains Drainage District Bypass Agreement
5. Southgate Wyandotte Relief Drains Drainage District Discharge Agreement
6. Participation in DUWA Board Meetings by Electronic Means (by Fausone Bohn)
7. System Manager Report for August 2020 Board Meeting (by OHM Advisors)
8. DUWA Biosolids Dryer Facility Monthly Progress Summary (by Veolia)
9. Request for UPS Replacement Work from FY20-21 Small Capital Budget
10. Request for Safety Improvements at Existing DAF Building
11. Request to Revise Walsh’s Phase 1 GMP Delivery Date
12. Monthly Operating Report for June 2020 (by Veolia)
13. Quarterly Financial Statement – 2020Q2 (By Doug Drysdale)
14. Invoice Register, dated August 7, 2020 (by Doug Drysdale)