DOWNRIVER UTILITY WASTEWATER AUTHORITY
OCTOBER 8 & 22 (Special), 2020 MEETING MINUTES

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OCTOBER 8, 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 9 communities: Allen Park, Brownstown Township, Dearborn Heights, Ecorse, Lincoln Park, Riverview, Romulus, Taylor, and Wyandotte. A quorum (at least 7 members) was present.

Dustin Lent (Southgate) joined meeting shortly after Roll Call.

2. Approval of Agenda

Copies of the Agenda were made available prior to the meeting (Attachment 1). An amendment to the agenda was requested to move Item 4 to Item 6. Motion by Roberto Scappaticci (Romulus) and supported by Dave Flaten (Ecorse) to approve the amended Agenda.

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

3. Approval of Minutes from September 10, 2020 Board Meeting

Copies of the meeting minutes from the September 10, 2020 Board Meeting were distributed by email prior to the meeting (Attachment 2). Motion by Keith Boc (Taylor) and supported by Greg Mayhew (Wyandotte) to approve the minutes. A roll call vote was taken and the motion passed with an affirmative vote by all attending members. Motion passed unanimously.

4. System Manager Update

a. System Manager Monthly Report

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).

a. System Manager Monthly Report
System Manager Kaunelis noted the following highlights from the System Manager Report:
• EGLE approved the relocation of the sampling point at the DWTF. The EGLE engineer is now working to obtain the necessary approvals.
• The SCADA system implementation is complete, but additional testing of the wiring has been on hold due to COVID-19 travel restrictions. Eramosa is looking to schedule the remaining work.
• The 2019 flow metering data formatting issues have been resolved and the 2019 Collection System report is now finalized. Overall, the system is in fair to good condition and minor repairs have been made.
• The SEMCOG GIS work is complete and DUWA will be issuing the $30k grant reimbursement request for this work.

Jim Taylor (Van Buren Township) joined meeting during this discussion.

5. Biosolids Dryer Facility Project – GMP Presentation
Bill Hanley, the Construction Project Manager from Veolia, presented the 60% design and Guaranteed Maximum Price (GMP) (Attachment 5). The scope of the project included the relocation of two centrifuges and the removal of four filter belt presses while maintaining continuous operations of the dewatering system. The solids handling building layout was also presented. The anticipated schedule includes the 60% GMP approval by October 22, 2020 with the Phase 2 Notice to Proceed issued in November 2020. The dryer delivery is expected in April 2021 with system startup in late 2021. DUWA can expect to see a significant reduction in disposal costs at the beneficial use milestone in February 2022 prior to the final performance testing. The project is expected to be complete on April 16, 2022.

Several GMP scope changes were included in the most recent project cost estimate, and these include the thermal oil room addition to the exterior of the solids handling building, Screened Final Effluent system capacity upgrades, dust control in the truck bay, drainage manhole relocation from under the thermal oil room, dual disk pump replacement, and the inclusion of a boundary layer injection system. Success factors for the project include reducing the operating costs, mitigating DUWA’s risk with landfill availability for biosolids disposal, and environmental benefits with possible beneficial reuse options.

The updated Risk Register was presented and includes a Risk Register for both Walsh and DUWA. Walsh’s financial risk sums to ~$788k, which is ~3% of the project total, and includes items such as the potential for hazardous materials, additional electronic equipment, and geotechnical upgrades due to poor soil conditions. DUWA’s financial risk sums to ~$390k, which is about 1.5% of the project total, and includes any DUWA-directed changes during design or construction and sludge trucking disposal cost impacts or charges for delays or standby time.

The total project cost estimate inclusive of the Phase 1 work ($9.3M), Veolia’s CPM work ($450k), Walsh’s Phase 2 bid ($16.6M), and DUWA’s 1.5% contingency ($390k) is about $26.7M. The amount committed to date only includes the Phase 1 work, which is about $9.3M or 35% of the project total. The Phase 2 work will cost about $17.4M, and has not yet been authorized. The next steps are either for the Board to approve the GMP as presented or take an off-ramp option. One off-ramp option involves terminating the relationship with Walsh and proceeding with a design-bid-build project approach using Wade Trim as the engineer (Walsh’s engineer), and then negotiating additional costs to finish the design and engineering during construction and soliciting competitive bids for construction. The other off-ramp option involves terminating the relationship with Walsh and proceeding with a new engineer under a design-bid-build project approach. The WIFIA Loan of $35M is anticipated to close in December 2020 and will help finance this project as well as the Alkali Sewer Rehab project, electrical system repairs, and other critical small capital projects. DUWA’s cash reserves and rate revenue for small capital projects will finance the remaining amount.

Steve Hitchcock (Romulus Legal Counsel) asked whether additional operation and maintenance costs were included in the annualized cost savings and net present value calculations. Bill Hanley responded that the net savings includes the dryer and O&M costs. System Manager Lambrina Tercala, of OHM Advisors, also responded that a breakdown of the O&M costs over the life of the system will be provided. Roberto Scappaticci (Romulus) asked what is included in Walsh’s $16.5M cost estimate as the significant cost increase from the indicative estimate ($21M) to the 60% cost model ($26.7M) is concerning and much of the work will be subcontracted out. Bill Hanley responded that Walsh’s cost estimate is the lump sum to finish the project and includes the risk register as well as potential change orders. This cost estimate is locked in and will not increase going forward. Walsh is soliciting bids to get competitive subcontractor pricing and is taking on the burden of handling any design conflict risks and executing the construction of the project. There is an 8.75% markup on all subcontractors. Chairperson McLeod (Allen Park) noted that it is nice to not have that burden to deal with. Roberto Scappaticci (Romulus) also asked whether there is any significant cost increases anticipated from Kruger. Bill Hanley responded that Walsh and Kruger have been coordinating throughout the project and Walsh has reviewed Kruger’s work such that significant cost increases are not expected from Kruger. Bill Turner (Brownstown Township) asked whether there would be another cost increase at the 90% cost model. Bill Hanley responded that Walsh’s $16.5M estimate is the firm fixed fee and includes final completion of the project.

Jim Taylor (Van Buren Township) asked what is included in the project allowances identified by Walsh. Bill Hanley responded that these include items such as cleaning, SCADA programming, and any other items that had an unclear scope making it difficult to assign a reasonable cost. Hanley also noted that the most significant scope change items in terms of cost are the thermal oil room addition and the drainage manhole relocation.

Roberto Scappaticci (Romulus) requested that DUWA professionals provide a formal recommendation on how to proceed. System Manager Kaunelis confirmed that a formal recommendation would be provided at the Special Board meeting on October 22, 2020. Jim Taylor (Van Buren Township) noted that while the cost estimates may be higher than anticipated, the review process is proceeding exactly as expected for a progressive Design Build project delivery, which is a new approach for the region and DUWA. Tim Muirhead (Veolia) also noted that if an off-ramp option was taken, the costs to DUWA per day for delay of the project to solicit competitive bids could offset any cost savings realized from the future design-bid-build bids received.

6. 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.
• Contract documents for the emergency roof repairs were prepared and included in the RFP soliciting the roofing contractor.
• Fausone Bohn has begun preparing draft contract documents for the selected rate consultant.
• The final Discharge Agreement has been executed. The Bypass Agreement is awaiting resolution of one outstanding technical item.
• The MI Supreme Court decision on the Governor’s emergency powers may impact the Open Meeting Act. Fausone Bohn will work on the protocol for conducting virtual, in-person, or hybrid meetings as desired and will update the Board on legal requirements for conducting such meetings.
• Fausone Bohn is assisting with legal issues that arise as the technical team reviews the GMP for the Biosolids project. An extension of time to reach agreement on the GMP will be necessary.

7. Requests for Authorizations
System Manager Tercala provided the following requests to the Board.

a. Walsh First Amendment – Extension of GMP Negotiation Timing
Per the Phase 1 Progressive Design Build Agreement between Walsh and DUWA, upon receipt of Walsh’s GMP proposal (Phase 2), DUWA may either accept the GMP and issue a Notice to Proceed, enter into a negotiation with Walsh on the scope, GMP, and schedule to achieve a mutually acceptable basis on which to proceed, or reject the GMP. The Agreement allows the parties 21 days to come to an agreement on the GMP upon its receipt, which would be October 9, 2020. The DUWA team has been actively negotiating the scope and terms of the GMP with Walsh, however the next Special Board meeting is not scheduled until October 22nd, which exceeds the 21-day limit. A contract amendment is proposed to extend the 21-day limit to 60 days (November 17, 2020) which would allow for the GMP to be agreed upon at the Special Board meeting or at the November Board meeting, if necessary (Attachment 6).

Motion by Dave Flaten (Ecorse) and supported by James Krizan (Lincoln Park) to approve an amendment to the Progressive Design Build Agreement to extend the GMP negotiation period to 60 days. A roll call vote was taken; motion passed unanimously with all attending members.

b. Brownstown Overpayment
Communities are responsible for self-reporting their base sewer flow units to DUWA on a monthly basis. Brownstown Township is served by both the DUWA and South Huron Valley Utility Authority (SHVUA) sewer systems, and thus should subtract the flow units sent to SHVUA and only pay DUWA for units treated by DUWA. During the survey process for analyzing the Non-Residential User fees, the information provided by Brownstown Township showed that Brownstown Township ceased subtracting the SHVUA flow units from October 2019 through May 2020. The Township since revised the erroneous self-reporting forms and calculated an overpayment to DUWA of $326,570.03 (Attachment 7).

Beth Bialy, of Plante Moran, suggested that DUWA issue a refund check instead of setting up a 6-month repayment plan as the repayment plan would be spread over two fiscal years which would complicate the accounting. She also mentioned that DUWA may want to consider creating a policy detailing how to handle self-reporting errors in the future as two have already happened in a short time frame.

Brownstown Township has not yet paid DUWA for the months of June, July, and August, and there was thought that DUWA could just issue one check to the Township subtracting the amounts due for these three months. Offsets are currently discouraged; it is best practice to have a paper trail of transactions. Doug Drysdale (Riverview) suggested that this month’s invoice register be amended to include the full refund to Brownstown Township (Attachment 11).

Motion by Roberto Scappaticci (Romulus) and supported by Dustin Lent (Southgate) to amend the invoice register to include the full refund of $326,570.03 to Brownstown Township for overpayment. A roll call vote was taken and the motion passed with 87.6% of the vote. Brownstown Township abstained from this vote. Motion passed unanimously with all voting members.

c. Rate Consultant Recommendation and Request to Negotiate
Three proposals were received in response to the rate consultant RFP and interviews were conducted with each rate consultant. The cost proposals and scopes varied between the three bidders, especially in terms of the amount of time associated with meetings (Attachment 8). The selection criteria included the company’s qualifications and experience with systems similar to DUWA as well as the project approach and fee. Based on the proposals and interviews, the Selection Committee felt Raftelis was the most qualified company based on their experience, but their fee of $217k is unacceptably high due to a significant number of anticipated meetings. DUWA’s current rate year includes up to $50k for rate consultant efforts. Future budget and rate year setting processes will consider additional funds as necessary. The Selection Committee recommends Raftelis for the Board’s consideration, but plans to enter into negotiations to revise and reduce the scope and fee.

Motion by Roberto Scappaticci (Romulus) and supported by John Selmi (Dearborn Heights) to authorize members of the Selection Committee to commence contract negotiations with Raftelis with the intent to revise and reduce their Rate Consultant proposal fee for the Board’s future consideration. A roll call vote was taken and the motion passed with 93.9% of the vote. Motion passed unanimously with all voting members.

d. Emergency Roofing Construction Contract (WIFIA Prj 4-10)
The RFP for emergency roof repairs and maintenance at the DWTF was issued on September 14, 2020. An optional site visit and pre-bid meeting was held, and two bidders proposed on the project. PSI, DUWA’s roofing designer for this project, tabulated the bids and provided considerations for bid recommendation (Attachment 9). Both bids were in line with what was expected for the base bid. Bloom was the low bidder at $35,490, with $25,760 as the base bid and $9,730 in optional add-ons. This additional optional work is strongly encouraged to proceed on. The work will be funded by DUWA’s Small Capital Budget. DUWA budgeted up to $225k in roofing work for the current rate year, and $51,450 has been authorized to date for design and construction oversight services, leaving $173,550 remaining in the budget. This project is also WIFIA eligible (Project No 4-10). It is desired to complete these critical roof repairs before winter.

Jim Taylor (Van Buren Township) asked who would be performing the construction inspection and oversight. System Manager Tercala responded that PSI would be performing the inspection and oversight with coordination with Veolia.

Motion by Roberto Scappaticci (Romulus) and supported by Doug Drysdale (Riverview) to authorize the Chair or Vice Chair to execute an agreement with Bloom Roofing Systems, Inc. at a cost of $35,490, pursuant to satisfactory terms and conditions by DUWA’s legal team. A roll call vote was taken and the motion passed with 93.9% of the vote. Motion passed unanimously with all voting members.

8. Contract Operator Update

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

a. August 2020 MOR

The August 2020 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting packet (Attachment 10). Highlights from the summary and other updates included the following:

• There was a significant rain event at the end of August that required a secondary bypass, but no primary bypass. The plant performed well exceeding its secondary capacity of 125 MGD for over 18 hours.
• Plant operations were in compliance with all regulatory requirements and water quality standards.
• Many maintenance activities were completed including repairs on the IPS fine screen, primary settling tanks, secondary treatment, drain lines, and a water main.
• Over 200 preventative work orders and 20 corrective work orders were completed.
• The new permit limits for Phosphorous have caused increase ferric chloride consumption and a major cost impact to Veolia. Veolia is working on estimating the additional consumption needs for 2021 and beyond for DUWA’s budgeting purposes.

9. Treasurer’s Report

a. Pending Invoices

Accountant Doug Drysdale (DNS Financial Services; Riverview) presented the invoice register for a request for payment. The invoice register was provided in the pre-meeting packet (Attachment 11). The invoice register included 42 invoices due for a total of $3,232,466.14. Largest invoices included those to US Bank for SRF bond payments, Veolia for O&M services, flow monitoring, and utilities, Inland Waters for their effort on the Alkali Sewer Rehabilitation project, and Wyandotte for utility services. In addition to the 42 invoices, the invoice register was amended to include a refund of $326,570.03 to Brownstown Township for overpayment to DUWA due to errors in the self-reported sewer flow units. Motion by Roberto Scappaticci (Romulus) and supported by John Selmi (Dearborn Heights) to pay the amended invoice register. A roll call vote was taken and the motion passed with 93.9% of the vote. Motion passed unanimously with all attending members.

10. Public Comment

There was no public comment.

11. Other Business

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

12. Next Special Board Meeting Date: Thursday, October 22, 2020 (Virtual via Zoom)

Chairperson McLeod (Allen Park) reminded the Board that the next meeting would be a Special Board Meeting that will take place on Thursday, October 22, 2020 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 John Selmi (Dearborn Heights) and supported by Dustin Lent (Southgate) to adjourn the meeting. A roll call vote was taken and the motion passed with 93.9% of the vote at 11:11 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. September 10, 2020 DUWA Board Meeting Minutes
   3. Monthly Legal Update (by Fausone Bohn)
   4. System Manager Report for October 2020 Board Meeting (by OHM Advisors)
   5. 60% Design and GMP (Veolia CPM/Ewing)
   6. Biosolids Progressive Design Build Agreement – Extension of Time to Negotiate GMP (by Fausone Bohn)
   7. Brownstown Township Overpayment (by Plante Moran)
   8. Recommendation of Rate Consultant and Request to Negotiate
   9. 2020 Emergency Roof Repair and Maintenance (RFP-2020-04) Construction Authorization (WIFIA Prj 4-10)
   10. Monthly Operating Report for August 2020 (by Veolia)
   11. Invoice Register, dated October 13, 2020 (v3; by Doug Drysdale)

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DOWNRIVER UTILITY WASTEWATER AUTHORITY
OCTOBER 22, 2020 SPECIAL 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 9:01 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 Doug Drysdale (Riverview) and supported by James Krizan (Lincoln Park) to approve the Agenda.

Due to the meeting being held virtually, a roll call vote was recommended by DUWA’s attorney for Board actions. A roll call vote was taken and the motion passed with 88.7% of the vote (affirmative vote by all attending members). Motion passed unanimously.

3. Presentation of Walsh’s Revised Phase 2 GMP for the Biosolids Dryer Facility Project
Veolia’s CPM, Bill Hanley, presented the revised Phase 2 Guaranteed Maximum Price (GMP) for the Biosolids Dryer Facility project to the Board (Attachment 2). Goals of the GMP negotiation included reducing the GMP cost while increasing the project base scope, transferring project risks from DUWA to the DBE, transferring allowances to a fixed price and defined scope, and creating cost certainty. With the revised GMP, the project schedule still remains unchanged.

The original GMP lump sum cost was $16,585,000. The revised GMP lump sum cost is now $16,395,500 for a total net cost reduction of $189,500. The revised GMP reduced the original GMP while also adding additional scope items totaling approximately $344,500. The polymer system and SFE system allowances were defined and their costs were included in the revised GMP. Cost reductions were realized for the Walsh fee, value engineered roofing system to TPO system, Builder’s Risk insurance, concrete supervision, design completion consultant fees, and removal of allowances for permits, SCADA, and cleaning (Attachment 3).

Eight items on the Risk Register were transferred from DUWA to Walsh with no cost change including COVID-19 risk, underground unforeseen conditions, geotechnical upgrades, additional electrical equipment, existing hazardous materials, trench and plumbing drain modifications, miscellaneous oil removal, and the removal of unnecessary break room work. Walsh is taking the risk for 90% and 100% design and construction.

DUWA’s Risk Register includes the project contingency, which is about 1.5% of the project total. The SCADA contingency was removed as it is now defined in the GMP. The Builder’s Risk contingency was also removed as it is now included in Walsh’s GMP. A cost of $75k was added to the contingency for an additional conveyer or modifications to the truck load-out to optimize and maximize the loaded volume of each truck. With these revisions, DUWA’s Risk Register now totals $401,800, which is a slight increase from its original Risk Register total of $390,300.

With the aforementioned revisions, the total project cost is now $26,552,477, which is a $205,900 reduction from the previous project cost of $26,758,377. This new project total includes cost reductions on Veolia’s CPM Phase 2 cost and Walsh’s Phase 2 GMP as well as a slight cost increase in DUWA’s contingency.

The updated Project Proforma comparing the costs for landfilling the biosolids to the cost for the thermal belt drying project shows an annualized total cost savings of $817,240 and a total cost savings of $20,431,015 over a 25-year operational period. This is based on an engineer’s analysis. From a finance perspective, the engineer’s cost savings does not include the WIFIA debt, and since the WIFIA loan is required because of the project, it should be folded in. From a finance perspective, the annualized total cost savings may be more near $810,000.

It was also noted this project reduces the risk to finding a landfill willing to accept the biosolids and also reduces the cost for biosolids hauling. A Pro Forma sensitivity analysis was also completed for three scenarios: Worst Case (2-pup trailers, 100% tip fee), Mid-Point (2-pup trailers, 50% tip fee), and Best Case (2-pup trailers, 0% tip fee). The percent of tip fee is dependent on the volume of biosolids that would be landfilled versus used for beneficial reuse. The Best Case scenario Proforma shows an annualized cost savings of $2,131,625 and the Mid-Point scenario Proforma shows an annualized cost savings of $1,474,435, which might be the most realistic option (Attachment 4).

Based on the information presented, approval of the revised GMP is recommended as the project demonstrates an overall cost savings to the system and reduces DUWA’s risk with finding landfills willing to accept the current volume of raw, unstabilized biosolids.

Roberto Scappaticci (Romulus) asked what the years of payback are for the Worst Case scenario Pro Forma and what the benefit is to taking an off-ramp option. System Manager Tercala responded that a useful life of 25 years was assumed, but the system could conceivability last up to 30 years based on its material of construction and limited mechanical parts. She also responded that DUWA knows changes need to be made to the existing biosolids operation, and this biosolids dryer facility project is the fastest solution. Another option would be to use a digester, but this project would take longer to implement and would delay the time of beneficial reuse. Additionally, a lot of time has been invested to understand the intricacies of the system and operations, and if a different engineer was selected as a part of the off-ramp option, more time would be needed to allow this engineer to become familiar with the system and operations.

Jim Taylor (Van Buren Township) asked if there are any legal risks with taking the off-ramp and choosing another engineer. Attorney Andrea Hayden responded that there are no legal risks to DUWA for choosing to take the off-ramp. DUWA would only be responsible for the Phase 1 GMP cost and DUWA and Wade Trim would need to determine who takes what project material and information. There is no off-ramp for Kruger, so DUWA owns the dryer. If DUWA decides to use a digester going forward, DUWA would have paid for a dryer that would not be used.

Kerry Morgan (Riverview Legal Counsel) asked whether Walsh’s costs would be replicated by another bidder. Bill Hanley, Veolia’s CPM, responded that Walsh is performing some of the work and the rest is subcontracted out. Their prices are competitive based on industry pricing. There is a potential for bids to be slightly lower, but it depends on the market. Prices may also be higher and there is a potential for delays. Dustin Lent (Southgate) noted that disposal costs are increasing and more landfills are tightening their regulations which would further increase the cost to DUWA.

Jim Taylor (Van Buren Township) stated that the off-ramp option is for the event that something has gone wrong, but this is not the case at this point, and DUWA has already seen cost savings. He stated that DUWA has explored the options and reviewed the progress to date and believes DUWA should move forward and approve the revised GMP. Chairperson McLeod (Allen Park) supported this statement and added that all of the information has been reviewed extensively and the cash clock is ticking.

4. Requests for Approvals Related to Biosolids Dryer Facility Project
System Manager Lambrina Tercala, of OHM Advisors, provided the following requests to
the Board.
a. Walsh Phase 2 Contract Amendment (2nd Contract Amendment)
DUWA needs an alternative approach for biosolids disposal from the current status quo, and it has been determined that a dryer facility is the best approach for DUWA. The revised GMP for the Biosolids Dryer Facility project was presented to the Board. The revised GMP includes a cost reduction from the original GMP and also includes minimization of DUWA’s risk costs associated with allowances and previous Risk Register items. DUWA can expect to see an Operation and Maintenance cost savings of about $1.825M per year and a total project cost savings of about $817k per year over the 25-year useful life period. Considering all options to reduce operating costs in the future, DUWA may recognize an annualized cost savings in the range of $817k/year (worst case) to $2.1M/year (best case) with the average near $1.45M/year. The revised GMP has been presented to DUWA’s Legal, Technical, and Finance Committees. This project is recommended for advancement as it demonstrates an overall cost savings to the system and reduces DUWA’s risk with a landfill’s willingness to accept disposal of its raw, unstabilized biosolids.

The Walsh Phase 2 Contract Amendment memorializes the Phase 2 contract price and also includes a substantial completion date, scope changes, and minor changes to exhibits (Attachment 5).

Motion by Dustin Lent (Southgate) and supported by Dave Flaten (Ecorse) to authorize the Chair or Vice Chair to execute Walsh’s Second Contract Amendment for their Phase 2 work in association with their GMP of $16,395,500 for design-build entity services associated with DUWA’s Biosolids Dryer Facility project. A roll call vote was taken and the motion passed with 88.7% of the vote. Motion passed unanimously with all attending members.

b. DUWA’s Project Contingency
DUWA’s project contingency was slightly revised as a part of the revised GMP. Eight items on the Risk Register were transferred from DUWA to Walsh with no cost change. DUWA’s Risk Register includes the project contingency, which is about 1.5% of the project total. The SCADA contingency was removed as it is now defined in the GMP. The Builder’s Risk contingency was also removed as it is now included in Walsh’s GMP. A cost of $75k was added to the contingency for an additional conveyer or modifications to the truck load-out to optimize and maximize the loaded volume of each truck. With these revisions, DUWA’s Risk Register now totals $401,800, which is a slight increase from its original Risk Register total of $390,300 (Attachment 6).

The project contingency will be a set aside project cost where authorizations of expenses will be brought to the Board for consideration and approval. However, there may be cases where the Contractor encounters unexpected issues during construction. To address this, the motion is proposed to permit the Chair or Vice Chair to authorize the System Manager to approve contingency costs up to 10% of the total project contingency so that the Contractor does not have to wait until a future Board meeting for approval. The Board will be advised of all contingency cost expenses.

Motion by Jim Taylor (Van Buren Township) and supported by Roberto Scappaticci (Romulus) to accept Veolia CPM’s recommendation of the Biosolids Dryer Facility Project Owner’s contingency in an amount of $401,800. This motion also permits the Chair or Vice Chair to authorize the System Manager to approve time-sensitive contingency costs up to 10% of the total contingency budget. A roll call vote was taken and the motion passed with 88.7% of the vote. Motion passed unanimously with all attending members.

c. Veolia’s CPM – Phase 2 Proposal
In February 2020, DUWA authorized Bill Hanley of Veolia to assist with capital program management (CPM) services associated with the Biosolids Dryer Facility Phase 1 project. He has since provided great value to DUWA’s team with his design-build and construction experience. Veolia prepared a proposal to provide continued CPM services associated with Phase 2 of the project for a not-to-exceed fee of $430,350 (Attachment 7). Veolia CPM Phase 2 services include construction oversight, which would be performed by a Veolia team member in Bill Hanley’s group. The proposal also includes a resume for Dave Rossetti as an example of the qualifications for their oversight personnel. DUWA has requested to interview and approve Mr. Rossetti or another Veolia-recommended construction oversight candidate prior to project assignment.

Chairperson McLeod (Allen Park) asked whether the costs associated with the effort for hiring the oversight personnel was included in the Phase 2 proposal costs. System Manager Tercala responded that the hiring effort costs would be included as a part of OHM’s System Manager services to the Board and Veolia’s CPM services. Attorney Hayden noted that an edit was made to the proposal to include a statement that DUWA will receive qualifications from Veolia and will approve the said individual.

Motion by Keith Boc (Taylor) and supported by Roberto Scappaticci (Romulus) to authorize the Chair or Vice Chair to execute Veolia’s second contract amendment for inclusion of Phase 2 CPM services associated with the progressive Design-Build Biosolids Dryer Facility project at a not-to-exceed fee of $430,350. The agreement will be authorized upon acceptance of terms and conditions by legal. A roll call vote was taken and the motion passed with 88.7% of the vote. Motion passed unanimously with all attending members.

5. Public Comment
There was no public comment.

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

7. Next Meeting Date: Thursday, November 12, 2020 (Virtual via Zoom)
Chairperson McLeod (Allen Park) reminded the Board that the next meeting would be on Thursday, November 12, 2020, and would be conducted virtually via Zoom.

8. Adjournment
There being no other business, Chairperson McLeod (Allen Park) announced that a motion to adjourn would be in order. Motion by Rick Rutherford (Belleville) and supported by Dave Flaten (Ecorse) to adjourn the meeting. A roll call vote was taken and the motion passed with 88.7% of the vote at 9:47 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. Walsh Phase 2 GMP (v5, final) (by Walsh)
3. GMP Review for Phase 2 Biosolids Dryer Project (by Veolia CPM)
4. Biosolids Thermal Drying Project (Pro Forma Sensitivities) (by Veolia CPM)
5. Walsh Phase 2 Contract Amendment (Second Contract Amendment) (WIFIA Prj No 1)
6. DUWA’s Owner Contingency for Biosolids Dryer Facility Project (WIFIA Prj No 1)
7. Request to Engage Veolia’s Capital Team for Phase 2 Capital Project Manager Services Associated with the Progressive Design-Build Biosolids Dryer Facility Project