DOWNRIVER UTILITY WASTEWATER AUTHORITY
AUGUST 10, 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 9:00 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, 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 Mayor Bill Bazzi (Dearborn Heights) and supported by Greg Mayhew (Wyandotte) to approve the Agenda. The motion passed unanimously by all attending members.

 

3. APPROVAL OF MINUTES FROM JULY 13, 2023 BOARD MEETING
Copies of the meeting minutes from the July 13, 2023 Board meeting were included in the pre-meeting Board packet (Attachment 2). Motion by Jeff Dobek (Riverview) and supported by Roberto Scappaticci (Romulus) 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 stated that the proposed bond amendment related to the payment schedule of the remaining $3.5M due to Wayne County as part of the system transfer was submitted to the Wayne County Corporate Counsel for review. Rumzei Abdallah, of Plante Moran, also provided Wayne County with a proposed payment schedule along with the proposed bond amendment. The payment schedule involves payment of the $3.5M over the course of five years ($700k per year) at 4% interest. The proposed bond amendment is expected to be included on the Wayne County Commissioners’ August 17th Board agenda for approval.

b. Resolution Regarding Intent to Reimburse from Proceeds of Revenue Bond
If DUWA decides to pursue municipal bonding, bonding assistance efforts will be required from PFM (DUWA’s financial advisor) and Dykema (DUWA’s bond counsel). It is standard practice to reimburse these bond assistance expenses from the proceeds of the bond. Fausone Bohn provided a Resolution regarding the intent to reimburse expenses from the proceeds of the bond (Attachment 4). This Resolution does not obligate DUWA to bond nor does it obligate DUWA to bond for a specific amount.

Mayor Bill Bazzi (Dearborn Heights) asked whether DUWA would receive the funds from the bond at the time of bond closing or if funds would be disbursed in installments, should DUWA decide to bond. Attorney Fausone responded that if DUWA decides to bond, PFM will perform an analysis to determine how much DUWA should bond and will develop the payment schedule for disbursement of funds.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Mayor Bill Bazzi (Dearborn Heights) to approve the prepared Resolution regarding intent to reimburse expenses from the proceeds of the revenue bonds if issued, and authorize the Chair to sign, on behalf of the Authority, all necessary documents. The motion passed unanimously by all attending members.

 

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 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:

• • • The Governor signed the proposed State Budget house bill which included $10M to be allocated to DUWA for critical improvements at the DWTF. OHM will coordinate with Senator Geiss’ office to understand the potential flexibility of use of these funds and whether restrictions apply. Senator Geiss has worked closely with the elected officials who serve on DUWA’s Board and has been supportive of DUWA receiving these funds. Plante Moran will perform a cash flow analysis to determine how much DUWA should bond considering the $10 earmark.
    • Black & Veatch will present their recommendation of UV equipment manufacturer later in the meeting. Three proposals were received in response to the Request for Proposals (RFP) for UV equipment manufacturer. Black & Veatch reviewed these proposals and presented their recommendation to the Technical Committee who agreed with the recommendation.
    • Three PLC-5s need to be replaced in the Solids Handling Building. Two proposals have been received to complete this work, but the scopes of work are not comparable. Veolia and OHM will work with these companies to develop similar scopes of work for comparison and review.
    • Veolia is developing a proposal to establish local limits for PFAS, which is an emerging contaminant. There are roughly six industrial users within DUWA’s service area that have known sources of PFAS. The IUs are working on mitigation measures in coordination with Veolia’s IPP Program. Development of PFAS local limits involves additional sampling and local limits calculations than what has been completed to date. The proposal for supplemental sampling will be circulated through the Technical Committee for recommendation before being brought forward to the Board for approval.
    • The next Strategic Planning workshop will be held immediately following the September Board meeting. The workshop will focus on identifying target areas or tactics for DUWA to consider implementing in response to the challenges that DUWA currently faces, as determined during the first workshop. Pre-meeting materials will be sent to the Board ahead of the workshop for review, and lunch will be served during the workshop.
    • The WIFIA loan included funding for four primary projects. Project 4 included a program of projects which included over a dozen small capital projects. Two of these small capital projects were requested to be removed from Project 4 based on their delayed timing and lower criticality. The EPA has approved the removal of these two sub-projects. The EPA noted that they will view Project 4 at a high level rather than assessing each sub-project. DUWA is required to achieve substantial completion of all four primary projects by December 31, 2025.

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). Three proposals were received in response to the UV Named Manufacturer Request for Proposal (RFP). Black & Veatch reviewed the proposals and presented their recommendation of UV equipment manufacturer to the Technical Committee for agreement. Black & Veatch will present their recommendation of UV equipment manufacturer to the Board later in the meeting. System Manager Tercala reminded the Board that there will only be one contract in place for this project. DUWA will contract directly with the General Contractor, who will then contract with the UV Named Manufacturer as their subcontractor. Early selection of the UV Named Manufacturer was necessary as the design of the UV system and UV channels will be influenced by the equipment provided by the Named Manufacturer.

Wayne County has not provided indication that DUWA will receive ARPA funding for the UV project. DUWA’s Project Plan for SRF funding through EGLE received a low score, thereby reducing DUWA’s chance of receiving low-interest SRF financing. Senator Peters had earmarked $2M to DUWA, but DUWA was recently notified that this funding was not approved. Senator Peters’ office encouraged DUWA to also apply to other State Representatives’ and State Senators’ portals for future funding requests to improve DUWA’s chances of receiving funding. However, DUWA has been approved to receive $10M through the State budget house bill.

Chairperson McLeod (Allen Park) asked if the Board Commissioners should notify the System Manager when the State Representatives’ and State Senators’ portals for funding requests are opened. System Manager Tercala responded that it would be appreciated if Board Commissioners could notify the System Manager when the funding request portals are opened as the System Manager will submit the funding requests on behalf of DUWA. Attorney Fausone noted that DUWA does not receive notice of when the portals are opened as these notifications are only provided to individual communities.

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 McCutcheon (legal counsel) from Kruger were also in attendance. The new troughs were installed on July 17th to prevent the material from bridging. The cake pump inlets were replaced, which provides more accurate readings so adjustments on other components can be made accordingly. The leveling screws were replaced and were installed in a different configuration to allow for easier access for maintenance. The cake bin was put back into service on July 26th. The North dryer was started on July 27th. After startup, one cake pump was not functioning properly, and was replaced with a spare on August 1st. The South dryer was started on August 4th, and both dryers have been in operation since that date. The redesigned BLIS system was installed to help reduce pressures in the pipes and increase the longevity of the pumps. With the use of the BLIS system, the pressures into the North dryer were within the desired range.

The dosing pumps are operating at 70% speed, and bucket tests have shown that the dosing pumps on the North dryer are operating within their desired ranges. It is expected that the dosing pumps on the South dryer are also operating at similar production capacities. One dosing pump on the North dryer had operational issues, potentially due to a damaged stator, so it was sent to Seepex, the pump manufacturer, for evaluation. A spare dosing pump was installed in its place. Dryer production will continue to slowly be increased to achieve design capacity. The BLIS system will be adjusted as the dryer capacity increases.

Kevin Lawrence (Van Buren Township) asked for the typical life expectancy of the pumps. Jason Nash responded that the motor assemblies typically last about 15 years, the rotors last about one year, and the stators last about two years. The wear parts (rotors and stators) have lasted roughly two months earlier this year. Seepex has not provided a specific answer on pump longevity. Mayor Bill Bazzi (Dearborn Heights) asked if an analysis has been performed to understand where the debris is coming from. Jason Nash responded that debris is not unique to DUWA as it is present in all wastewater treatment plants. The DWTF has screens to catch debris as small as half an inch, and a grinder is used to disintegrate the debris. These methods of debris-removal are common amongst other wastewater treatment plants as well. Yet, some debris still manages to pass through. Mayor Bill Bazzi (Dearborn Heights) asked if another filter or treatment stage could be installed to further disintegrate and catch debris. Jason Nash responded that Kruger is currently analyzing and evaluating potential options for debris-removal equipment. Chairperson McLeod (Allen Park) suggested that communities should reevaluate their landscaping practices and implement solutions, such as filtration, to prevent mulch from getting into the sanitary sewer system. Mayor Bill Bazzi (Dearborn Heights) added that some businesses store bags of mulch outside, and the communities should work with these businesses to limit the debris that comes from their property.

Roberto Scappaticci (Romulus) asked if Kruger has evaluated the adequacy of the size of the discharge lines into the dryer considering the clogging of debris in the lines. Mike Gutshall responded that the nozzles were sized specifically to optimize the dryer operation and performance. If the nozzle sizes were increased, then the solids ribbon would be larger, which would potentially result in inadequate drying of the solids and/or reduced production capacity of the dryers. He added that the dryers operate as expected once the material is placed on the dryers. Mayor Joseph Kuspa (Southgate) asked if there are other nozzle sizes available. Jason Nash responded that the manufacturer offers several nozzle sizes that could be used for this specific dryer system, and the largest nozzle size was selected. Jason Nash also added that DUWA’s dewatered solids are dryer than solids at other plants, which contributes to friction loss, but the BLIS system should help reduce friction in the lines.

Roberto Scappaticci (Romulus) asked if there is anything with DUWA’s dryer system that is unique compared to other dryer systems Kruger has installed. Mike Gutshall responded that there are no unique components to DUWA’s dryer system that he is aware of, but stated that he would follow up on this item. He added that Kruger’s third-party expert looked at the upstream processes and should provide his evaluation in his report. Keith Morris also added that Kruger always installs progressive cavity pumps for the dryer systems, but does not always use Seepex as the pump manufacturer. Roberto Scappaticci (Romulus) stated that Kruger’s third-party expert should provide additional information and recommendations related to the debris buildup considering that DUWA’s wastewater and debris content is typical of other wastewater streams, and yet the debris is causing clogging issues in the dryer system. It is important to understand what is causing the clogging and to develop recommendations to resolve it, such as an improved screening process. Jim Taylor (Walsh Small Group Consultant) asked when the report by John Shaw, Kruger’s third-party expert, will be available for review. Mike Gutshall responded that the report is expected to be received by August 16th.

Attorney Fausone asked how much dried solids are currently being produced now that both dryers are in operation. Jason Nash responded that one 100-yard truck is filled every 24 hours with 90-92% dried solids.

Attorney Kerry Morgan (Riverview’s attorney) noted that Seepex recommends the use of either a macerator or pre-conditioning screening and asked for detail on how a macerator is used. Jason Nash responded that a macerator has a steel plate with small holes and a cutter blade. As the wastewater flow goes through the holes, anything larger than the holes in the steel plate get cut until the debris fits through the holes. Attorney Fausone added that the DWTF is already equipped with what are called ‘muffin monsters’ that perform a similar function to grind debris. Jason Nash added that the ‘muffin monsters are set up differently as they have two rows of teeth that cut debris, but the configuration of the teeth could allow debris the size of a playing card to fit through if it falls in just the right spot. ‘Muffin monsters’ are effective enough for dewatering solids with centrifuges, but the dryer utilizes more restrictive piping and thus the ‘muffin monsters’ are not effective enough at cutting the debris to smaller sizes. Jason Nash added that the debris has only been discovered in the 9mm dosing nozzles downstream of the dosing pumps. Some fibrous material has been discovered on the new screws in the cake bin, but this is not a concern as of yet. The macerators sold by Seepex are about $30k each and currently have a 3-month lead time.

Attorney Kerry Morgan (Riverview’s attorney) asked if there is a location in the treatment train upstream of the dryer system where a filter with finer screening could be installed. Jason Nash responded that there is a location in the downstairs pipe gallery where a strainpress could be installed. He also stated that there is space available to replace the existing ‘muffin monsters’ with a macerator. He noted that without the use of the ‘muffin monsters’, the filters would blind in a matter of minutes, so it is important that the equipment can remove debris and clean itself.

Chairperson McLeod (Allen Park) asked if videos could be provided that show the operation of the dosing pumps and nozzles. System Manager Tercala responded that the brief videos of the biosolids facility that were developed a few months ago included a look at the sludge ribbon being placed on the dryers. Mike Gutshall added that Kruger could provide some additional videos of this process as well.

 

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

a. UV Named Manufacturer Recommendation Associated with the UV Disinfection Replacement Project
Emily Schlanderer and Gary Hunter, of Black & Veatch, presented their recommendation of UV Named Manufacturer to the Board (Attachment 8). The existing UV equipment is no longer supported by Trojan and has reached the end of its useful life, thus it requires replacement. A Request for Proposals (RFP) was issued in June for solicitation of UV equipment suppliers. Proposals from Trojan Technologies, Xylem, and Veolia were received in response to the RFP.

Black & Veatch evaluated and compared the three proposals according to the scoring criteria, which included cost, history of installations, and proposed design. The three proposed UV systems use lamps that are more energy efficient, but Trojan’s proposed system would use fewer lamps than the other UV systems. Veolia had the lowest capital cost for their system, but Trojan had the lowest 20-year lifecycle cost when the annual operation and maintenance cost was considered. Trojan has also had experience with many similar-sized projects in the past ten years, whereas the other two systems have had limited installations. Trojan’s proposed system will fit into the existing facility with relatively minor modifications needed. Based on the scoring criteria, Trojan ranked the highest of the three vendors. Trojan’s proposed capital cost was $3.5M, which is lower than the previous $6.5M budgetary cost that they had provided during the SRF Project Plan development.

The RFP also included four potential bid alternates. Three of the alternates related to extending the standard warranty and warranty bond as well as replacing the existing NEMA 4X enclosures with NEMA 12 enclosures. These alternates are not recommended by Black & Veatch. Alternate D, however, is recommended by Black & Veatch as this alternate involves the early development of equipment shop drawings and submittals for Engineer review and approval during the design phase. This alternate will lock in the proposed equipment price and will allow the Named Manufacturer to submit shop drawings during the detailed design phase such that Black & Veatch’s design can be specifically developed to accommodate the Named Manufacturer’s equipment. This will also allow for the UV equipment to be ordered for fabrication shortly after the General Contractor contract is awarded since the shop drawings will already be developed and approved. This will shorten the overall construction schedule. Trojan Technologies’ proposal includes a fee of $60,000 for development of shop drawings. The recommendation of Trojan Technologies as the Named Manufacturer as well as the early development of shop drawings were recommended by the Technical Committee for approval.

Mayor Joseph Kuspa (Southgate) asked if one vendor would be responsible for the project. Attorney Fausone responded that a RFP will be issued later this year for solicitation of a General Contractor to construct the project once the design is complete. The capital cost of Trojan’s UV equipment will be written in the RFP as the locked-in price, and the General Contractor will be required to engage Trojan Technologies as its equipment manufacturer through a subcontract. DUWA will only maintain one contract for the project, and the contract will be with the General Contractor.

Motion by Greg Mayhew (Wyandotte) and supported by Mayor Tim Woolley (Taylor) to approve Trojan Technologies as the Named Manufacturer for the UV disinfection equipment, per Black & Veatch’s recommendation. The motion passed unanimously by all attending members.

Motion by Greg Mayhew (Wyandotte) and supported by Roberto Scappaticci (Romulus) to approve the issuance of a purchase order in the amount of $60,000 for early shop drawing development by Trojan Technologies, the selected Named Manufacturer for the UV disinfection equipment, per Black & Veatch’s recommendation. The motion passed unanimously by all attending members.

b. Walsh Release of Retainage Associated with the Biosolids Dryer Facility Project
Walsh, the progressive Design-Build (pDB) entity for the Biosolids Dryer Project, submitted a request for equitable adjustment (REA) for additional time and costs incurred due to project delays. The DUWA Small Group and Walsh met on May 23rd to review the terms of the REA, and DUWA requested that Walsh provide a revised REA to reflect the items discussed during that meeting. Walsh provided their revised REA on June 9th with a number of terms for consideration. One of those terms was request for release of retainage. Several small group meetings were held with DUWA’s Board Commissioners and members of DUWA’s Walsh Small Group to discuss this request. Based on these discussions, it is recommended to release a partial amount of the retainage to Walsh. The partial release of retainage is intended to be used by Walsh to pay and maintain its business relationships with its subcontractors that worked on the project (Attachment 9).

As per the contract, the total amount of retainage withheld is equal to $819,775. The Guaranteed Maximum Price (GMP) included a cost estimate of about $10.9M for work performed by subcontractors. Retainage of 5% of the total cost to subcontractors was withheld, which totals $548,494.80. It is recommended to release partial retainage to Walsh for that amount for payment of subcontractor invoices. This would leave $271,280.20 remaining in retainage withheld from Walsh. Full release of retainage is not recommended because the equipment components supplied by Walsh that are located downstream of the dryers have not been proved out at their design capacities since the dryers have not yet operated at 100% of their design capacity.

Attorney Kerry Morgan (Riverview’s attorney) asked if DUWA should consider requiring a guarantee by Walsh that they will only use the release of retainage for payment of their subcontractor invoices. Attorney Fausone responded that DUWA cannot place a lien on Walsh to guarantee their payment to subcontractors.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Mayor Joseph Kuspa (Southgate) to approve the partial release of retainage to Walsh for payment of subcontractor invoices in the amount of $548,494.80. This fee would be paid from DUWA’s Capital Outlay budget line item. The motion passed unanimously by all attending members.

c. Builder’s Risk Insurance Extension Markup Associated with the Biosolids Dryer Facility Project
Walsh currently maintains a Builder’s Risk insurance policy with ACE American Insurance Company for their work on the Biosolids Dryer Project. This policy covers physical losses experienced during construction activities. At last month’s Board meeting, the Board approved Walsh to extend the insurance policy for a 6-month term beginning July 15, 2023 and terminating on January 15, 2024 for a direct cost of $15,505. At that time, Walsh’s proposed change order for the policy extension was not yet available, so the direct cost did not include Walsh’s 15% markup, which is allowed per their contract. Walsh’s proposed change order for this policy extension is now available and includes their 15% markup. The total cost for the 6-month extension of the insurance policy is $17,830.75, thus, payment of the remaining fee of $2,325.75 related to Walsh’s markup on the insurance policy extension is requested (Attachment 10).

Mayor Joseph Kuspa (Southgate) asked if this is expected to be the final insurance extension for the biosolids project. System Manager Tercala responded that Veolia CPM recommended the 6-month insurance extension.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Jeff Dobek (Riverview) to approve the additional cost of $2,325.75 for Walsh’s 15% markup on the 6-month extension of the Builder’s Risk insurance policy with ACE American Insurance Company. This fee would be paid from DUWA’s Capital Outlay budget line item. The motion passed unanimously by all attending members.

d. Wyandotte Request for Refund for Overpayment
Rumzei Abdallah, of Plante Moran, presented Wyandotte’s request for refund of overpayment to the Board (Attachment 11). On February 8, 2023, Todd Drysdale, City Administrator for the City of Wyandotte, made a formal request for refund of $211,156 due to overpayment per DUWA’s Overpayment Refund Policy. On the self-reporting forms, Wyandotte had been including all of the flow from the master meter readings, then added in flows from BASF (which were already in the master meter read), and then backed out only a portion of the added-in BASF flows, so some of the BASF flow was being double counted each month. The City corrected its self-reporting error after April 2022.

The City’s request also required adjustment for an unrelated matter. The City was taking exemptions for the hospital and the power plant that are now being disallowed. When the system was transferred to DUWA, DUWA allowed some of the existing Wayne County exemptions to stand until DUWA developed its own exemption process. The new exemption policy was adopted by the DUWA Board in July 2021, at which time all existing exemptions were disallowed, and only new DUWA-approved exemptions were allowed. Subtracting the disallowed exemptions from the original refund request results in a proposed refund amount of $168,939 to Wyandotte. This request was reviewed by the Finance Committee, and is recommended for approval.

Under DUWA’s overpayment policy, refunds are limited to a 3-year period after the situation is brought to DUWA’s attention. In this case, the first notice of the overpayment occurred via email in December 2022, so the starting date for the refund goes back three years to December 2019 and ends with April 2022 since the error in self-reporting was corrected at that time. Per the policy, overpayments are to be repaid over three years starting with the next budget year. The City was also required to pay a $500 fee for the review of the overpayment request, and this fee was paid on June 30, 2023.

Mayor Joseph Kuspa (Southgate) asked Greg Mayhew (Wyandotte) if he was satisfied with the proposed refundable amount. Greg Mayhew (Wyandotte) responded that he had not heard of concerns related to the proposed refundable amount. Chairperson McLeod (Allen Park) asked how the refund would be paid to Wyandotte. Rumzei Abdallah responded that the refund would be applied as a credit on Wyandotte’s sewage disposal charge invoices.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Jeff Dobek (Taylor) to refund the City of Wyandotte for a total of $168,939 payable in three annual installments in January of 2024, 2025, and 2026 in an amount of $56,313 each year. 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. June 2023 MOR
The June 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:

• • • June was a dry month as the average flow into the plant was 36 MGD, which is lower than the annual average. A total of 1B gallons were treated in June.
    • 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 decreased, and no compliance violations occurred in July.
    • The DWTF is not receiving much glycol from the airport as the airport only discharges glycol when it rains, which requires the airport to drain their lagoons.
    • The PACl trial is ongoing and is proving to be very effective for phosphorous removal. Some ferric chloride is continuing to be added for odor control.
    • Veolia is engaging USP Technologies to perform a pilot study to dose hydrogen peroxide for odor control. The agreement is in the process of being finalized. Veolia will cover the cost to perform this pilot study.
    • There is currently one maintenance position, two operator positions, and one lab technician position open. There were two open positions in June, none in July, and now four in August. Some of the new employees discovered that the job was different than what they expected, so they decided not to continue.
    • The media in the condensing towers for the dryers was cleaned and replaced after it was discovered that the media was fouled. This was a large job as the work required the use of a manlift and crane.
    • Veolia has transitioned to a new maintenance and management tracking system called VAMS. This system is entirely digital so there is no longer a need to print out corrective maintenance work orders. All plant staff have tablets with which they can create and complete work orders. The Key Performance Indicators (KPIs) associated with the new VAMS system are different than the previous KPIs, but the new KPIs will be revised to track the items most beneficial for Veolia’s operations.
    • The screw conveyer company hosted a training for Veolia staff at the DWTF on how to perform a condition assessment of the drag chain conveyor, which is used to convey the dried product to the trucks. This system has only been run a few times because the dryers have been offline. The conveyor also experienced a failure yesterday, and the manufacturer will be onsite this week to investigate the cause of the failure and to make repairs.
    • There were 293 Miss Dig tickets received in June, of which 26 were emergency requiring a quick response time. 79 tickets required physical marking.

Attorney Kerry Morgan (Riverview’s attorney) asked if Veolia has studies on debris received at wastewater treatment plants and if it is known whether DUWA’s industrial users produce plastic pieces as were found in the dryer nozzles at the DWTF. Jason Tapp responded that he has asked his Veolia colleagues whether they have studies on debris, but it does not appear that they do. . Jason Tapp added that DUWA’s industrial users do not discharge plastic solids to the DWTF. Veolia monitors soluble constituents within the industrial users’ flow streams. Larger debris, fiber, and rags are typically attributed to domestic and commercial sources. Attorney Kerry Morgan (Riverview’s attorney) asked if macerators have been installed in other wastewater treatment plants. Keith Morris, of Kruger, responded that Kruger has not installed macerators at other plants, but he will check to see if other Veolia-operated plants have macerators.

b. Chemical & Sludge Price Updates
Jason Tapp presented the summary of commodity unit price changes to the Board (Attachment 13). The cost paid by DUWA for sludge hauling and disposal was about $412k in June. This cost is expected to increase in July due to the dryers being offline and due to the additional truck hauling needed for disposal of the dewatered solids that have been building up at the plant. The cost for sludge hauling and disposal in August is expected to be lower as the solids storage levels at the plant have now returned to normal. Veolia will also begin tracking the cost for use of hydrogen peroxide for odor control once the pilot test system is online.

c. Biosolids Disposal Outlets
Jason Tapp stated that one of DUWA’s current haulers is allowing Veolia to use its landfill space through the end of the year so Veolia can remove enough of the sludge from the plant for it to return to its normal sludge storage levels. With the additional landfill capacity, Veolia filled 10-12 trucks per day with dewatered solids for disposal to the landfill in June and July. The sludge storage levels at the plant have since returned to normal. Most of the biosolids are now being dried and sent to LaSalle. Veolia does not anticipate experiencing another sludge inventory backup this year unless one of their landfill sites stops accepting sludge.

Greg Mayhew (Wyandotte) asked if hydrogen peroxide dosing is still needed for odor control now that the sludge levels at the plant have returned to normal. Jason Tapp responded that it is possible that hydrogen peroxide may no longer be needed for odor control, but Veolia wanted to have a backup option in place in case the sludge levels at the plant could not be sufficiently reduced. He added that hydrogen peroxide will only be dosed on an as-needed basis, and the dosing rate will be adjusted appropriately to meet odor control needs.

d. Existing Disinfection System Performance & Remaining Life Update
Jason Tapp stated that Veolia is continuing to work with Trojan to obtain spare parts 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. Veolia recently learned that a facility recently decommissioned their Trojan UV system and has many spare ballasts in their inventory that they are willing to provide Veolia. Ballasts are expensive and require replacement on a routine basis. Additionally, OEM spare parts are much more efficient and effective than spare parts from third-party vendors.

 

8. TREASURER’S REPORT

a. Quarterly Financial Report – 2023 Q2
Accountant Doug Drysdale (DUWA’s Accountant; DNS Financial Services) presented the Quarterly Financial Statement for Q2 of 2023 (Attachment 14). The targeted percentage of budget used is 50% for Q2. Operating revenue, which includes sewer disposal charges and industrial surcharges, is at about 48% of the budgeted amount as sewage disposal and excess flow charges are slightly behind. Industrial flow surcharges are at about 87% of the budgeted amount and IPP surveillance permit fees are at about 59% of the budgeted amount. These two items are helping to supplement the operating revenue budget since the sewer disposal and excess flow charges are currently under budget. SRF billings are at about 68% of the budgeted amount. About 60% of the SRF billings were sent to the communities in April, and the remaining 40% of the billings will be sent to the communities in October. DUWA had budgeted for $1M to be received from SRF bonding for project reimbursements, however no reimbursements have been received to date. Interest earnings are at 287% of the budgeted amount due to the increased interest rates. This has generated an unexpected source of revenue of about $150k per month.

Principal payments on debt service were paid in April. It is expected the promissory note of $3.5M to Wayne County will not be paid in full this year due to the renegotiated bond payment terms. A budget amendment will be forthcoming to account for this adjusted payment plan. Under Other Services, audit fees are at 153% of the budget used because the single audit effort related to the WIFIA loan was not anticipated to be needed this year. The budget will include fees for the single audit in future years. The percent of budget used for plant operations is nearing 50% as additional O&M and commodity invoices through Q2 were recently received. Much of the capital outlay budget remains unspent as very few capital projects have been advanced on. Most of the capital outlay budget used is related to the UV disinfection replacement project efforts.

DUWA’s balance at the beginning of the year was about $37.5M and is now $38.8M due to the lack of spending on capital projects through Q2. The amount in Accounts Receivable has increased from $3.1M to $3.6M as the industrial surcharges billed in July are not yet reflected on the balance sheet. Some sewage disposal invoices are also still outstanding. There will be no change to the Fixed Assets or Depreciation until the end of the year when the audit is performed. The amount in Accounts Payable increased from $4.4M to $5.6M. Outstanding invoices from Veolia are planned to be paid this month. The short-term and long-term (bonds) liabilities remain unchanged and will be adjusted at the end of the year as principal bond payments are expensed at the end of the year. DUWA currently has a net profit of $832k through Q2.

Mayor Joseph Kuspa (Southgate) asked if a year-over-year comparison of the percentage of budget used could be provided noting that it is interesting that many budget items are less than the targeted 50% of budget used for Q2. Accountant Doug Drysdale responded that he will add additional columns to future quarterly financial reports to show the year-over-year percentage of budget used for comparison.

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 $3.3M, of which 97% is current within 60 days. No communities have outstanding invoices over 60 days.

Chairperson McLeod (Allen Park) asked for a status update on addressing the aging invoices over 120 days. Accountant Doug Drysdale responded that many of the aging invoices are attributed to DTE. It was discovered that the DTE invoices were still being sent to the decommissioned plant in River Rouge and were not being passed along to the appropriate person for payment. Accountant Doug Drysdale has since made contact with the appropriate finance person at DTE and expects their outstanding invoices to be paid within the next week. Additionally, it was discovered that the US Steel invoices were sent to the wrong person. Accountant Doug Drysdale will continue working with US Steel and the other corporate customers to obtain payment of their aging outstanding invoices.

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 32 invoices due for a total of $721,467.86. The largest invoices included those to Veolia for three months’ worth of unit cost reconciliations and flow metering and Wyandotte for utility services.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Roberto Scappaticci (Romulus) to pay the invoice register. The motion passed unanimously by all attending members.

 

9. PUBLIC COMMENT
Chairperson McLeod (Allen Park) stated that the City of Allen Park will be hosting a Styrofoam collection recycling event on September 16-17 from 9am to 3pm at the City’s Department of Public Works. A trailer will be dropped off on Friday and picked up on Monday. Chairperson McLeod (Allen Park) invited all DUWA community residents to participate as this event is not limited to only Allen Park residents. Chairperson McLeod (Allen Park) stated that she will share the flyer with the DUWA Board Commissioners to share with their communities, if desired.

 

10. OTHER BUSINESS
a. Strategic Planning Workshop Reminder: September 14, 2023
Chairperson McLeod (Allen Park) reminded the Board to RSVP for the next Strategic Planning Workshop that will be held immediately following the Board meeting on September 14, 2023 in the City of Taylor Council Chambers.

 

11. NEXT BOARD MEETING DATE: Thursday, September 14, 2023 (9:00 AM; In-Person)
Chairperson McLeod (Allen Park) reminded the Board that the next meeting would take place on Thursday, September 14, 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 Roberto Scappaticci (Romulus) to adjourn the meeting. The motion passed unanimously at 10:46 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. July 13, 2023 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone Bohn)
4. Bond Reimbursement Resolution (by Fausone Bohn)
5. System Manager Report for August 2023 (by OHM Advisors)
6. UV Disinfection Replacement Project Update (by OHM Advisors)
7. Biosolids Dryer Facility Project July 2023 Monthly Progress Summary (by Veolia)
8. UV Named Manufacturer Recommendation Associated with the UV Disinfection Replacement Project (by Black & Veatch)
9. Partial Release of Retainage to Walsh Associated with the Biosolids Dryer Facility Project
10. Walsh Markup of Builder’s Risk Insurance Policy Extension Associated with the Biosolids Dryer Facility Project
11. Refund for City of Wyandotte Overpayment Request
12. Monthly Operating Report for June 2023 (by Veolia)
13. DWTF Unit Price Changes Summary (by Veolia)
14. Quarterly Financial Statement for 2023 Q2 (by Doug Drysdale)
15. Aged Accounts Receivable Report, dated August 3, 2023 (by Doug Drysdale)
16. Invoice Register, dated August 4, 2023 (by Doug Drysdale)