DOWNRIVER UTILITY WASTEWATER AUTHORITY
JUNE 8, 2023 MEETING MINUTES
CITY OF TAYLOR COUNCIL CHAMBERS WITH VIRTUAL OPTION

1. ROLL CALL AND INTRODUCTIONS
DUWA Chair Gail McLeod (Allen Park) called the hybrid meeting to order at 9:06 AM and asked for roll call to be taken. At the time of roll call, voting representatives were in attendance from 8 communities: Allen Park, Belleville, Dearborn Heights, Lincoln Park, Riverview, River Rouge, Southgate, and Wyandotte. A quorum (at least 7 members) was present.

 

2. APPROVAL OF AGENDA
Copies of the revised Agenda were made available prior to the meeting (Attachment 1). Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Mayor Joseph Kuspa (Southgate) to approve the revised Agenda. The motion passed unanimously by all attending members.

 

3. APPROVAL OF MINUTES FROM JUNE 8, 2023 BOARD MEETING
Copies of the meeting minutes from the June 8, 2023 Board meeting were included in the pre-meeting Board packet (Attachment 2). Motion by Rick Rutherford (Belleville) and supported by Greg Mayhew (Wyandotte) to approve the minutes. The motion passed unanimously by all attending members.

 

4. LEGAL UPDATE
Attorney Jim Fausone, of Fausone Bohn, provided the Legal Update.

a. General Counsel Monthly Report
Attorney Fausone stated that a written summary of the monthly legal update was provided in the pre-meeting Board packet (Attachment 3). Attorney Fausone stated that it has been a typical month of activities as Fausone Bohn has been assisting the System Manager with various contract matters and has participated in virtual meetings with the Legal, Finance, and Technical Committees. Attorney Fausone also noted that during the COVID-19 pandemic, a special provision was added to the Open Meetings Act allowing for Board meetings to be conducted virtually. That special provision has since expired, and the Open Meetings Act now requires in-person attendance by voting Board members and does not require that virtual attendance be made available. Due to the technical challenges in conducting hybrid meetings with both in-person and virtual attendance availability, the Board Officers requested that Board meetings be conducted in-person only moving forward.

b. Wayne County Bond Amendment for Remaining Transfer Payment
As a part of the payment terms agreed upon when DUWA purchased the system from Wayne County, DUWA’s final payment to Wayne County in the amount of $3.5M is due September 27, 2023. Attorney Fausone stated that discussions with Wayne County have continued regarding the possibility of altering the bond payment terms to allow DUWA to extend the $3.5M payment over the course of up to five years. This request was presented to Wayne County in 2022 after DUWA experienced unanticipated increased operation and maintenance costs. Fausone Bohn has worked with Dykema, DUWA’s bond counsel, to develop the paperwork necessary to implement the proposed bond amendment (Attachment 4). The proposed amended payment terms include the first principal payment in the amount of $700k to be made on October 1, 2023 and each year thereafter through October 1, 2027. A 4% interest will be applied to the outstanding amount, and interest is to be paid semiannually on April 1st and October 1st of each year beginning in 2024 through 2027. DUWA also has the option to pay off the remaining amount ahead of schedule without penalty, if desired. This proposed payment plan would improve DUWA’s cash flow and would still allow Wayne County to contribute to its employees’ pension funds as planned.

Should the Board agree to the proposed bond amendment, it will be sent to the Wayne County Deputy General Counsel who will then circulate it to the Wayne County Commissioners for approval. Attorney Fausone encouraged Board members to reach out to their Wayne County Commissioners to inform them of the forthcoming proposed bond amendment and to encourage their support of the amendment.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Mayor Bill Bazzi (Dearborn Heights) to approve the prepared “Proceedings of the Board of Commissioners of the Downriver Utility Wastewater Authority” and authorize the Chair and Secretary to execute all necessary paperwork to implement the Amended and Restated Bond Payment and further authorize Bond Counsel and General Counsel to work with Wayne County and the bond Trustee for implementation of the Amended and Restated Bond payment. The motion passed unanimously by all attending members.

 

5. SYSTEM MANAGER UPDATE
Prior to presenting the System Manager report, System Manager Tercala requested that Board Commissioners notify the System Manager as soon as possible if there is a known schedule conflict with an upcoming Board meeting, as a quorum (at least 7 Board members in attendance) is necessary to conduct business.

System Manager Lambrina Tercala, of OHM Advisors, provided a verbal summary of activities since the last meeting. A written summary was provided in the pre-meeting Board packet for the System Manager Report (Attachment 5).

a. System Manager Monthly Report
System Manager Tercala noted the following highlights from the System Manager Report:

• • • OHM is working with Veolia to obtain proposals from SCADA integrators for the PLC-5 replacement work in the Solids Handling Building. This project was included as a WIFIA loan project and is a critical project to maintain plant operations. One proposal has been received to date, and another proposal is expected to be forthcoming for consideration by the Technical Committee.
    • A second Strategic Planning Workshop with SEMCOG is planned to be held on September 14th immediately following the Board meeting. The draft agenda will be circulated to the Board Officers for review once developed.
    • Proposals to engage PFM and Dykema for municipal bonding assistance for the Ultraviolet (UV) Disinfection Replacement project will be presented to the Board for approval later in the meeting.
    • As per WIFIA loan requirements, the Base Case Financial Model was updated by PFM and submitted to the EPA ahead of the June 30, 2023 deadline.
    • The WIFIA loan engineer and administrator assigned to DUWA by the EPA visited the DWTF yesterday to see the WIFIA loan-funded projects and to review the provided WIFIA compliance documentation. The EPA staff provided suggestions for improving the WIFIA compliance documentation so that DUWA will be prepared in the event of an audit by the EPA or Department of Labor. OHM will work with the WIFIA project teams to fill in the identified gaps in the documentation. Within the next few weeks, the EPA will also provide DUWA with a report summarizing their observations during the site visit as well as the recommendations identified for improving compliance documentation.
    • Johnson Matthey submitted a wastewater exemption application in February 2023, then hired an engineer to perform a flow study to quantify the amount of exemptible flow. Upon review of the flow balance, their wastewater exemption application was approved, and will take effect July 1, 2023 per the policy.
    • DUWA approved the wastewater exemption application for Superior Materials (formerly Best Concrete) in Brownstown Township, and the exemption will take effect beginning July 1, 2024. Superior Materials is a ready-mix concrete production site. The site has two water meters, one of which measures the flow that is used only in the production of concrete and is not discharged to the sanitary sewer.
    • This month’s invoice register includes an invoice from HRC for incidental as-needed services related to their efforts in compiling the requested WIFIA compliance documents in preparation for the EPA site visit.

Mayor Joseph Kuspa (Southgate) requested that an agenda and other workshop materials be provided for review ahead of the next Strategic Planning workshop to allow the Board to review and prepare for the workshop. System Manager Tercala confirmed that relevant materials would be provided ahead of the workshop.

b. UV Disinfection Replacement Project Update
System Manager Lambrina Tercala, of OHM Advisors, provided an update on the UV Disinfection Replacement Project to the Board (Attachment 6). Black & Veatch is continuing to work on the detailed design of the new UV system. Three proposals were received in response to the UV Named Manufacturer Request for Proposal (RFP). Black & Veatch is reviewing the proposals and will provide a recommendation of UV manufacturer to the Technical Committee for their consideration prior to requesting Board approval.

Senator Geiss earmarked $10M to DUWA for the UV project in her bill that was recently passed by both the House and Senate. The final step in the approval process is for the Governor to provide signature. It is uncertain at this time when the funds would be made available, if cross-cutters apply, and if DUWA is required to implement other projects in addition to the UV project as part of this funding. Senator Peters also earmarked $2M to DUWA for the UV project which would be approved during the budget approval process at the end of the year. As it is uncertain when funds would be made available if approved, DUWA still plans to engage PFM and Dykema for municipal bonding assistance to improve cash flow. The municipal bonding process takes about three months, so PFM and Dykema would not be immediately engaged. In the meantime, it is hopeful that DUWA will learn more about the anticipated timeline to receive funding in order to better gauge whether municipal bonding will be necessary.

Chairperson McLeod (Allen Park) asked if DUWA can proceed with the bonding approval process, and then decline it if it is determined to not be needed. System Manager Tercala responded that DUWA does not need to close on the bond if it is determined to not be necessary, but DUWA would still be required to reimburse PFM and Dykema for spent bond assistance efforts. System Manager Tercala added that the total project cost is not yet known, and that it is possible that the total project cost may be less than originally projected due to lower capital costs for the UV equipment.

c. Biosolids Dryer Facility Project
Jason Nash provided an update on the Biosolids Dryer Facility project to the Board (Attachment 7). Mike Gutshall (President), Keith Morris (VP of Operations), and Dulcie McCutchern (legal counsel) from Kruger were also in attendance. Both dryers have remained offline over the past month. The dosing pumps on the South dryer have been rebuilt and reinstalled, and the South dryer is ready for startup. The pump rebuilds are complete on the North dryer and this dryer is ready for startup as well. The dryers will be started once the BLIS system redesign is complete. Seepex, the pump manufacturer, visited the site to evaluate the pumps, and recommended that the discharge pressure on the pumps be less than 160 psi for longevity considering the medium to high grit content within the solids. The BLIS system was operational but did not provide the desired pressure reduction. It was determined that the pumps on the BLIS system were not big enough to pump enough lubricant into the piping system to reduce the pressure, so Kruger is currently working on the redesign of the BLIS system. Kruger is also evaluating the use of different lubricants, such as water and vegetable oil. The BLIS redesign is anticipated to be complete by July 23rd and testing is projected to begin on July 24th. The redesigned cake bins are being installed today, and Kruger will focus on installing the new cake bin troughs and inlets next week such that the dryers can be started the week of July 24th.

Due to the project delays and lack of production from the dryers, there has been an issue with solids backing up at the plant. This resulted in a compliance violation in June as the monthly average for total phosphorous exceeded the permit limit. Since then, Veolia worked with Synagro who provided Veolia with landfill space so that up to 10 trucks per day can now be filled with solids and hauled to the landfill for disposal. This is helping to reduce the solids storage levels at the DWTF. The use of PACl for phosphorous removal continues to be effective for settling out the phosphorous.

John Shaw, Kruger’s third-party consultant, is onsite today to review the processes within the Solids Handling Building with Walsh. Jason Nash and Jason Tapp will walk him through the rest of the DWTF this afternoon.

Mayor Tim Woolley (Taylor) stated that it appears Kruger is just experimenting with different possible solutions, and meanwhile the plant is unable to maintain compliance. System Manager Tercala responded that Kruger has been reactive to problems and needs to provide a firm commitment on the projected timeline to resolve the issues.

Mayor Bill Bazzi (Dearborn Heights) asked if a failure mode analysis was performed on the design concepts before they were implemented in order to save time and costs for testing. He also offered to provide failure mode analysis software options for consideration. Mike Gutshall responded that the recent challenges are a result of changed conditions, and that it is difficult to predict potential failure scenarios as conditions change. The dryers were running at similar capacities with lower pressures a year ago, but now the pressures have significantly increased, and the only factor that may have changed is the sludge content. Kruger is coordinating with other manufacturers and drawing on previous experiences at other facilities to determine how to optimize the system. Kruger has also hired John Shaw, a third-party consultant, to evaluate the abrasiveness of the sludge and the observed pressures to provide recommendations on how to best convey the sludge and optimize the system. Mayor Bill Bazzi (Dearborn Heights) asked how long the pressure test lasted for the BLIS system and if other lubricants besides water and vegetable oil have been considered. Jason Nash responded that the BLIS system was operated for about 30 minutes on two different days, for a total run time of about one hour at a pressure of 125 psi. The BLIS system was only operated on one pump, so the test was short so as to not damage the other pumps that were running without lubrication from the BLIS system. Jason Nash also stated that in addition to vegetable oil, polymer was also recommended to be used as a lubricant, but polymer can cause sludge expansion at high injection rates, so it was not the ideal lubricant for DUWA’s dryer system. Water has been used as a lubricant at other facilities. System Manager Tercala added that Kruger will bear the cost for the lubricants until the ultimate solution is implemented.

Mayor Joseph Kuspa (Southgate) asked how many systems Kruger has worked with that are of similar size to DUWA. Mike Gutshall responded that Kruger has worked with about 8 systems of similar size in the United States and many more globally. He added that he has not been involved with a dryer project that has taken this long to complete, but he has been involved with other types of projects that take some time to work through challenges and fine tune. Keith Morris added that DUWA’s dryer project has been more challenging than other similar projects. Mayor Joseph Kuspa (Southgate) asked if the dryer commissioning issues are related to a design issue or are just a matter of working out the kinks. Mike Gutshall responded that he does not believe the commissioning issues are design-related, but rather are related to optimization of system operation. He noted that the dryers were able to run at their design capacities for a couple of months until the capacity began decreasing due to worn parts. The focus now is to optimize the operation of the system to minimize the wear and tear on parts.

Mayor Joseph Kuspa (Southgate) asked why Kruger has taken so long to resolve the commissioning issues. Mike Gutshall responded that Kruger is addressing the problems as quickly as possible as they arise. He added that problems that arise outside of Kruger’s scope must be resolved before Kruger can test and commission their equipment. Project delays caused by others further delay Kruger’s ability to test and troubleshoot their equipment and the overall dryer operation. Kruger has also been leveraging their global purchasing power to expedite equipment needs. Even so, the pump rebuilds by the pump manufacturer have taken several months to complete, and other operational issues cannot be identified until the rebuilt pumps are back in service.

Chairperson McLeod (Allen Park) asked if Kruger has determined the cause of wear on the pumps. Mike Gutshall responded that it appears the abrasiveness of the sludge material and the high pressures have increased the rate of wear on the parts. John Shaw, Kruger’s third-party consultant, will evaluate these two factors and will identify ways to quantify abrasiveness of the sludge. Mayor Joseph Kuspa (Southgate) asked if the use of a larger pump would reduce the rate of wear on the pump components. Keith Morris responded that use of a larger pump would not reduce the wear on the pump components as the material characteristics, not the pump size, impact the wear rate.

Jim Taylor (Van Buren Township) asked why the abrasiveness of the sludge material was not evaluated at the beginning of the project. Mike Gutshall responded that Kruger does not typically evaluate abrasiveness of the sludge material as it is unclear how to quantify the abrasiveness. Keith Morris added that the pumps are currently providing a discharge pressure of 250 psi, which is much higher than the desired 160 psi. Last year, the pumps provided a discharge pressure of 140 psi. No equipment components have changed since then, which suggests that the sludge characteristics may have changed causing increased friction losses. The use of the BLIS system is expected to help reduce the friction losses and associated pressures. Additionally, Kruger will also look into other possible operational considerations.

Attorney Kerry Morgan (Riverview’s attorney) asked if the sludge will be diluted, and thus require more drying with increased natural gas demand, when the lubrication system is used. Mike Gutshall responded that the sludge will not be diluted with the use of the lubrication system. Attorney Kerry Morgan (Riverview’s attorney) also asked what John Shaw’s scope of work includes. Mike Gutshall responded that John Shaw, Kruger’s third-party consultant, will advise on how to quantify the abrasiveness of the sludge (as there is currently no grit index) and will provide recommendations for reducing the pressures downstream of the pumps.

Mayor Joseph Kuspa (Southgate) asked at what point Kruger will stop testing and tweaking and instead revisit the entire system design. Mike Gutshall responded that with the rebuilt pumps and operational BLIS system, Kruger will soon be able to determine the rate of wear on the pump components and will determine whether the wear rate is acceptable. Kruger will have more information on this within the next couple of weeks. Jeff Dobek (Riverview) stated that with the recent permit violation and with the additional costs associated with increased hauling, it is important to complete the project as soon as possible.

i. Builder’s Risk Insurance Extension
Walsh, the progressive Design-Build (pDB) entity for the Biosolids Dryer Project, currently maintains a Builder’s Risk insurance policy with ACE American Insurance Company for their work on the Biosolids Dryer Project. The Builder’s Risk insurance policy covers property loss exposures associated with construction activities. With the commissioning delays on the dryers, Walsh has extended the insurance policy four separate times for a total fee of $30,242 to maintain coverage during construction. The current insurance policy is set to expire on July 15, 2023.

6-month and 12-month insurance extension options were provided for consideration, and Veolia CPM recommends the 6-month option for a fee of $15,505 (Attachment 8). The coverage would be extended from July 15, 2023 through January 15, 2024, for a fee of approximately $84.27 per day. Reimbursement of the cost will be coordinated with the Biosolids Project contract holders prior to contract closeout.

Mayor Joseph Kuspa (Southgate) asked what Builder’s Risk insurance covers and if it can be cancelled before its expiration date. System Manager Johnson responded that Builder’s Risk insurance covers property damage experienced as a result of construction activities, and it can be cancelled once construction is complete. If the coverage is cancelled before its expiration date, DUWA would receive a credit.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Rick Rutherford (Belleville) to approve Walsh to extend the Builder’s Risk insurance policy with ACE American Insurance Company for a 6-month term beginning on July 15, 2023 and terminating on January 15, 2024 for a fee of $15,505. The motion passed unanimously by all attending members.

 

6. OTHER REQUESTS FOR AUTHORIZATIONS AND APPROVALS
System Manager Mackenzie Johnson, of OHM Advisors, presented the following requests to the Board.

a. UV Disinfection Project Funding
DUWA is currently pursuing several funding opportunities to help minimize the rate impacts to users. It is expected that DUWA will be informed whether it will receive ARPA, federal, and/or SRF funding for this project by the end of this year, but given the unknown timing of the potential funding sources, DUWA will also consider municipal bonding. The municipal loan closing would be planned to occur in early 2024 at the latest.

PFM Financial Advisors serves as DUWA’s financial advisor and Dykema serves as DUWA’s bond counsel. Both entities have prepared proposed engagement letters to provide financial advisor and bond counsel services related to SRF or municipal bonding efforts (Attachment 9). PFM’s and Dykema’s fee structures are outlined in their proposed engagement letters.

Motion by Mayor Joseph Kuspa (Southgate) and supported by James Krizan (Lincoln Park) to authorize the Chair or Vice Chair to sign the Engagement Letter prepared by PFM for financial advisor services related to SRF or municipal bonding. If DUWA pursues SRF or municipal bonding, fees incurred will be paid from DUWA’s Financial Services line item of the budget. The motion passed unanimously by all attending members.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Jeff Dobek (Riverview) to authorize the Chair or Vice Chair to sign the Engagement Letter prepared by Dykema for bond counsel services related to SRF or municipal bonding. If DUWA pursues SRF or municipal bonding, fees incurred will be paid from DUWA’s Financial Services line item of the budget. The motion passed unanimously by all attending members.

b. Time Extension to James T. Taylor Contract
On February 16th, DUWA submitted a letter to Walsh requesting comment on the Biosolids Dryer Project’s delays and performance issues. Walsh, the progressive Design-Build (pDB) entity for the Biosolids Dryer Project, submitted a response to that letter in the form of a request for equitable adjustment (REA) for additional time and costs due to project delays. Walsh’s project work is near completion. The next steps with Walsh’s contract are for Walsh to complete outstanding work and known warranty items and close out the contract. DUWA has followed the Dispute Resolution process associated with the REA, and a small group of Board Commissioners and DUWA professionals was formed to work towards a resolution with Walsh.

At the May Board meeting, the Board approved Mr. Jim Taylor’s engagement for support of the small group for 90 days beginning May 1, 2023 and expiring August 1, 2023. Given that the Walsh contract dispute is not yet resolved, it is requested to extend his engagement for another 90 days beginning August 1, 2023 and terminating November 1, 2023 (Attachment 10). No other changes to the contract are proposed, and no additional fee is associated with the contract extension.

Motion by Rick Rutherford (Belleville) and supported by Greg Mayhew (Wyandotte) to approve the extension of engagement of James T. Taylor by 90 days with a revised contract termination date of November 1, 2023. The motion passed unanimously by all attending members.

c. GoDaddy Website Product Renewals
DUWA’s website is currently maintained via a WordPress platform and through a GoDaddy account. The WordPress site and website security are set to expire on July 14, 2023. These products have been satisfactory under the previous 24-month term and thus are recommended to be renewed for another 24-month period. The ‘Ultimate’ Managed WordPress Option is proposed to be renewed for 24 months at a $21.99 monthly fee, or for $527.76 total. The ‘Advanced’ Website Security Option is proposed to be renewed at a $19.99 monthly fee, or $479.76 total (Attachment 11). Terms less than 12 months have higher monthly fees, and terms 12 months and longer have the same monthly fees as those listed above. The total cost for these two products for the 24-month period is $1007.52, excluding tax or other service fees. The request is for $1100 to account for taxes and other fees that may apply.

Mayor Joseph Kuspa (Southgate) asked if GoDaddy offered 12-month rates for these products. System Manager Johnson responded that 12-month rates are offered at the same monthly rates as the 24-month rates, and thus are not more favorable.

Motion by Rick Rutherford (Belleville) and supported by Mayor Joseph Kuspa (Southgate) to authorize the System Manager to renew DUWA’s GoDaddy website products for the requested 24-month options at a total cost of up to $1100. This cost would be paid from DUWA’s Printing & Publishing budget line item. The motion passed unanimously by all attending members.

 

7. CONTRACT OPERATOR UPDATE
Jason Tapp and Travis Tuma, of Veolia, provided the Contract Operator update.

a. May 2023 MOR
The May 2023 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 monthly phosphorous permit limit was exceeded in June. The violation occurred due to the buildup of solids at the plant combined with the increased flows due to wet weather. Since acquiring additional landfill space and increasing the number of truckloads sent to the landfill each day, the sludge levels at the plant have begun to decrease, and no compliance violations are expected in July.
    • The maximum flow into the plant in May was 71 MGD, and no bypasses have occurred yet this year.
    • The DWTF received some glycol from the airport in May, but that has since tapered off.
    • A lead maintenance mechanic recently passed his wastewater exam so he will now shift roles to be a full-time operator. As a result, one maintenance mechanic and two operator positions are currently open.
    • The PACl trial is ongoing and is proving to be very effective for phosphorous removal. The reduction in the use of ferric chloride has caused increased odor due to the increased amount of sludge that is recycled. Veolia is working with USP Technologies on a 3-month pilot study to dose hydrogen peroxide for odor control. USP Technologies will provide the chemicals and necessary safety equipment to perform the pilot study. Veolia will cover the approximate cost of $32k to perform this pilot study.
    • Tunnel Pump Station pumps 5 and 6 were pulled for routine maintenance. This effort required a crane to pull the pumps from 65 feet below grade.
    • The media in the condensing towers for the dryers was cleaned and replaced after it was discovered that the media was fouled. This work required the use of a manlift and crane.
    • The mixers used for aeration in the secondary treatment process were scrubbed and power washed. Some were leaking oil, and the failure points were identified. Veolia will create an annual preventative maintenance measure to proactively replace the seals on the gear boxes to prevent future oil leaks.
    • The lobes in the lobe pumps that feed the centrifuges with 2-3% dried solids were replaced. The lobe pump speeds are increased as parts (lobes) wear. When the speeds reach 80-90% of full capacity, the lobes are then replaced.
    • New monitors were installed in the control room for better visibility of the SCADA system. This has also assisted with training of new employees as different parts of the plant operations can be viewed simultaneously.
    •  A faulty power supply was replaced on the PLC-5 in the Solids Handling Building. The PLC-5s are critical components to plant operations as they connect the various plant processes to the SCADA system to allow for automatic operation. Without the PLC-5s, some treatment processes could be run manually, but the centrifuges and dryers in the Solids Handling Building would not be able to be operated manually. The existing PLC-5s have reached the end of their useful lives and will soon be scheduled for replacement.
    • Three motors were replaced on the cake pumps which pump sludge from the cake bin into the dryer. The motors were worn because the cake pumps were running above their Full Load Amp (FLA). With the upcoming installation of the new troughs for the cake bin, the motors should be able to run at lower speeds, below their shutoff set point.
    • The Veolia collection system team replaced the single-use flow meter battery packs with rechargeable battery packs that were fabricated in-house by Veolia’s electricians. The single-use battery packs were wasteful.
    • The 2022 CCTV inspection effort of the collection system is 95% complete. The CCTV contractor is working to finish up the work, but they have been delayed due to the full pipes from the recent rain events. Veolia secured a different contractor to perform the 2023 CCTV inspections, and this work will commence in the next couple of weeks. It is expected that the 2023 CCTV inspection effort will take 3-4 weeks to complete.
    • There were 240 Miss Dig tickets received in May, of which 15 tickets were emergency. This number of tickets is typical for the summer months.

Mayor Joseph Kuspa (Southgate) asked if Veolia O&M can provide periodic updates on the percentage of design capacity at which the dryers are running when they are online as well as an indication of how other systems and wear parts are affected by the dryer operations. Jason Tapp confirmed that Veolia O&M can provide this information.

b. Chemical & Sludge Price Updates
Jason Tapp presented the summary of commodity unit price changes to the Board (Attachment 13). Sludge hauling continues to experience the largest unit cost increase since the beginning of the year. DUWA will receive a credit for sludge hauling and disposal for the months of February, March, and April because the cost for sludge hauling and disposal was less than the contract value as most of the biosolids went through the dryers. The sludge hauling and disposal cost for June will increase significantly due to the dryers being offline and due to the additional truck hauling for disposal of the dewatered solids. There has also been an increase in the unit cost for supplemental oxygen, which is used once the pipeline oxygen demand threshold has been exceeded. Supplemental oxygen is charged at a higher rate than pipeline oxygen. The unit prices for the other commodities have remained relatively stable. Veolia is continuing to track PACl usage for phosphorous removal, and the unit price for PACl has been locked in with Syangro through the rest of this year.

c. Biosolids Disposal Outlets
Jason Tapp stated that Synagro is allowing Veolia to use its landfill space for a few months until enough of the sludge is removed from the plant for it to return to its normal sludge storage levels. With the additional landfill capacity, Veolia is now filling 10-12 trucks per day with dewatered solids for disposal to the landfill. The plant is already in better shape and sludge storage levels are expected to improve over the next four weeks. Under normal conditions, the plant produces about 4-5 truckloads (20-yard trailers) of dewatered solids per day for disposal.

Attorney Kerry Morgan (Riverview’s attorney) asked if there are sludge storage tanks onsite at the DWTF. Travis Tuma responded that there are four sludge storage tanks onsite, and they are all full. They can hold approximately ¾ of a day’s worth of sludge. They are typically turned over quickly to maintain freshness. The primary and secondary clarifiers also provide some sludge storage as evidenced by the sludge blankets, which are compacted solids that settle out at the bottom of the tanks. Veolia takes samples at the clarifiers every four hours to monitor the thickness of the sludge blankets.

d. Existing Disinfection System Performance & Remaining Life Update
Jason Tapp stated that Veolia is continuing to work with Trojan to obtain spare parts, namely bulbs and ballasts, for the UV system. Trojan’s OEM spare parts are very expensive so Veolia is also coordinating with other utilities who have recently upgraded their UV systems to acquire their spare parts from their decommissioned Trojan UV4000 systems. OEM spare parts are much more efficient and effective than spare parts from third-party vendors. Veolia’s electrician is assigned to work on the UV system one day each week to make adjustments as needed to further extend its useful life. Given the availability of spare parts and the current performance of the UV system, Jason Tapp feels comfortable that the UV system can continue to be in operation for another 20 months.

 

8. TREASURER’S REPORT

a. Quarterly Financial Report – 2023 Q1
Accountant Doug Drysdale (DUWA’s Accountant; DNS Financial Services) presented the Quarterly Financial Statement for Q1 of 2023 (Attachment 14). The targeted percentage of budget used is 25% for Q1. Operating revenue, which includes sewer disposal charges and industrial surcharges, is at about 22% of the budgeted amount. Interest earnings are at 135% of the budgeted amount due to the increased interest rates. Under Other Revenue, there is a credit for about $10k for miscellaneous revenues because US Bank overpaid the SRF bond by about $10k. This has since been corrected. Debt service for the SRF, WIFIA, and senior liens is at about 50% of the budgeted amount because the first round of debt payments were due in April. Professional services related to engineering, administration, and finance are at about 17% of the budgeted amount because much of the budgeted engineering effort has not yet been used. The same is the case for the Capital Outlay as only 2% of the budgeted amount has been used through Q1. Plant operations are at about 21% of the budgeted amount noting that some of the Q1 unit price reconciliations for commodities have not yet been received. There is a net deficit of about $1.5M through Q1, but this is in large part due to paying over half of the bond payments in Q1.

DUWA’s balance at the beginning of the year was about $37.5M and is now $38.7M, but this does not include the bond payments that were made in April. The amount in Accounts Receivable has increased from $3.1M to $3.7M due to timing of collections from the communities. Most communities are current on their Accounts Receivable. There will be no change to the Fixed Assets until the end of the year when the audit is performed. The Other Assets line item includes $414k paid for insurance premiums for general liability. The amount in Accounts Payable increased from $4.4M to $8.1M due to the bond payments made in April. The short-term and long-term (bonds) liabilities remain unchanged. The total fund balance is about $104.5M.

b. Aging AR
Treasurer Jason Couture (Taylor) presented the Aging Accounts Receivable report (Attachment 15). Treasurer Couture stated that the total amount in the Accounts Receivable is approximately $702k, of which 92% is current within 30 days. Most of the aging AR is attributed to surveillance fees.

Chairperson McLeod (Allen Park) noted that DTE has many outstanding invoices over 120 days. Accountant Doug Drysdale (Southgate; DNS Financial Services) stated that he has been in communication with DTE and they are working on submitting payments for those invoices. He also noted that it can be difficult to make contact with the appropriate personnel at the larger corporate companies to notify them of their outstanding payments.

c. Pending Invoices
Treasurer Jason Couture (Taylor) presented the invoice register for a request for payment. The invoice register was provided in the pre-meeting packet (Attachment 16). The invoice register included 37 invoices due for a total of $3,596,850.30. The largest invoices included those to Veolia for three months’ worth of O&M and Wyandotte for utility services.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Mayor Bill Bazzi (Dearborn Heights) to pay the invoice register. The motion passed unanimously by all attending members.

 

9. PUBLIC COMMENT
Dan Horst, a Wyandotte resident, suggested that DUWA consider utilizing the hydrogen that he believes is being produced at the DWTF.

 

10. OTHER BUSINESS
There were no items brought forth for consideration as “Other Business Items”.

 

11. NEXT BOARD MEETING DATE: Thursday, August 10, 2023 (9:00 AM; In-Person)
Chairperson McLeod (Allen Park) reminded the Board that the next meeting would take place on Thursday, August 10, 2023 at 9:00 AM in-person at 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 Mayor Bill Bazzi (Dearborn Heights) and supported by Rick Rutherford (Belleville) to adjourn the meeting. The motion passed unanimously at 11:09 AM.

 

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. June 8, 2023 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone Bohn)
4. Amended and Restated Bond Payment to Wayne County Memo and Attached “Proceedings of the Board of Commissioners of the Downriver Utility Wastewater Authority” (by Fausone Bohn)
5. System Manager Report for July 2023 (by OHM Advisors)
6. UV Disinfection Replacement Project Update (by OHM Advisors)
7. Biosolids Dryer Facility Project June 2023 Monthly Progress Summary (by Veolia)
8.  Builder’s Risk Insurance Extension
9. Letters of Engagement for PFM and Dykema for Municipal Bonding Services
10. Time Extension of James T. Taylor Engagement for Walsh Contract Closeout Services
11. Request to Renew DUWA’s GoDaddy Products for Website Hosting
12. Monthly Operating Report for May 2023 (by Veolia)
13. DWTF Unit Price Changes Summary (by Veolia)
14. Quarterly Financial Statement for 2023 Q1 (by Doug Drysdale)
15. Aged Accounts Receivable Report, dated July 6, 2023 (by Doug Drysdale)
16. Invoice Register, dated July 6, 2023 (by Doug Drysdale)