DOWNRIVER UTILITY WASTEWATER AUTHORITY
SEPTEMBER 14, 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 11 communities: Allen Park, Belleville, Brownstown Township, Lincoln Park, Riverview, River Rouge, 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 James Krizan (Lincoln Park) and supported by Mayor Tim Woolley (Taylor) to approve the Agenda. The motion passed unanimously by all attending members.

 

3. APPROVAL OF MINUTES FROM AUGUST 10, 2023 BOARD MEETING
Copies of the meeting minutes from the August 10, 2023 Board meeting were included in the pre-meeting Board packet (Attachment 2). Motion by Roberto Scappaticci (Romulus) 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 & Grysko, 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 was a typical month of activities as Fausone & Grysko assisted the System Manager with various contract matters and participated in virtual meetings with the Legal and Technical Committees. Attorney Fausone also stated that Fausone & Grysko worked with the Legal Committee on the Kruger Tolling Agreement as well as the Wayne County Bond Amendment that was submitted to Wayne County for approval.

b. Wayne County Bond Amendment Update
Attorney Fausone stated that the proposed Wayne County Bond Amendment was approved by the Wayne County Board of Commissioners at their September 7th meeting. As part of the system transfer, DUWA had a remaining payment of $3.5M due to Wayne County in September 2023. The approved bond amendment allows DUWA to pay the $3.5M over a five-year period such that payments in the amount of $700k are made each year with a 4% interest accrual. Fausone & Grysko worked closely with the Wayne County Corporate Counsel to address their questions, and the amendment was signed by Mr. Warren Evans as well as DUWA’s Chairperson. Dykema (DUWA’s bond counsel) is now working with the trustee to ensure the $700k payment will be made on October 1, 2023 as specified in the agreement, and that the September payment of the $3.5M is no longer required.

 

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 4).

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

• • • DUWA’s Biosolids ‘Small Group’ now meets on a weekly basis to discuss matters related to the project as well as items related to Walsh’s and Kruger’s contract closeouts.
    • OHM continues to work with Veolia OM, MEA (DUWA’s natural gas consultant), and Constellation (DUWA’s natural gas supplier) to determine how much natural gas to sell back to the market each month since the dryers have only been online intermittently.
    • DUWA secured a $10M grant through the State for the UV Disinfection Replacement project and other critical improvements. OHM will work with Plante Moran, Fausone & Grysko, and PFM to determine how much to bond and how to stabilize cash flow since the funds will be disbursed via reimbursements. EGLE’s Grant Department will administer the funds and EGLE will provide DUWA with a point of contact for communication.
    • DUWA received a request from a developer to tie-in the development’s new sanitary sewer directly into DUWA’s Goddard Interceptor in Romulus. This is the first request of its kind to be received since DUWA’s ownership, but similar requests were made in the past during Wayne County’s ownership. The proposed development is located on Harrison Street between Hildebrandt and Goddard in Romulus. The Sewer Use Ordinance allows developers to submit a Class A permit application to tie-in to DUWA’s interceptor if no local sewer is present within 300 feet of the property. The proposed development meets this criterion, and a Class A permit application is expected to be submitted to DUWA for review. The Class A permit application will also be posted to DUWA’s website for use with future requests. Requests like these are not expected to be frequent.
    • DUWA’s property insurance carrier requested that DUWA complete a Flood Emergency Response Plan (ERP) before the next insurance renewal. This was requested because the DWTF is located within a floodplain. OHM worked with Veolia to complete the Flood ERP, which was provided to DUWA’s insurance carrier for review.
    • OHM met with Aon, DUWA’s insurance carrier, earlier this week to discuss DUWA’s insurance renewal for 2024. Aon indicated that they expect the property insurance premium to increase between 10-20% and the general liability insurance premium to increase between 5-10%. These projections are similar to what have been presented in previous years, and DUWA’s premium increases tend to be on the lower end of the range. The insurance renewals will be presented to the Board in November for approval.
    • The next Strategic Planning workshop will be held immediately following this 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. A boxed lunch will be provided to attendees.

Roberto Scappaticci (Romulus) asked if the contract requires unused natural gas to be sold back to the market or if the natural gas is sold to increase cash flow for other expenses. System Manager Tercala responded that DUWA entered into a contract with Constellation to receive a set volume of natural gas each month for 2023. This set volume was based on the assumption that both dryers would be in operation for the duration of 2023. With the dryers only intermittently online, much of the natural gas received is unused and is sent into storage. DUWA is only allowed to store a certain amount of natural gas, so some gas is sold back to the market to increase cash flow as well as to prevent DUWA from exceeding its storage threshold, which would result in fines. System Manager Tercala added that OHM tracks the amount of natural gas purchased compared to how much is sold back to the market on a monthly basis, and stated that this tracking spreadsheet will be provided to the Board at the next Board meeting.

Mayor Joseph Kuspa (Southgate) asked if the Class A permit application information can be shared out as it is a new application for DUWA. System Manager Tercala stated that a summary of the permit application process will be drafted and shared with the Board for better understanding.

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 5). Black & Veatch is progressing towards the 50% design which will also include a Basis of Design deliverable. The channel modification effort is expected to be more significant than was originally anticipated by Black & Veatch with Trojan’s proposed three banks per channel. The existing system has two banks per channel. There is consideration to install two UV banks per channel instead of the originally proposed three UV banks per channel to reduce the structural design effort of the channels. Black & Veatch will continue to work with Trojan to minimize the channel modifications needed.

OHM, Black & Veatch, and Veolia met with EGLE earlier this week to update them on the design effort. EGLE was advised the proposed project involves a straight, in-kind replacement of the UV system, utilizing the existing five channels to achieve peak permitted flows. It was also noted the new UV system will provide better efficiencies than the existing system.

c. Biosolids Dryer Facility Project
Jason Nash (Veolia CPM) provided an update on the Biosolids Dryer Facility project to the Board (Attachment 6). The dryers have been intermittently in operation since early August. When in operation, the dryers have reached up to 75% of their design capacity, but have not achieved additional throughput beyond the 75% capacity. The throughput through the dryers has fluctuated as adjustments to the Boundary Layer Injection System (BLIS) continued. Three dosing pumps failed within three weeks of being reinstalled after refurbishment. Upon inspection, it was determined that the rotors were refurbished instead of replaced. Seepex replaced the rotors under warranty and the dosing pumps were reinstalled, which then increased throughput into the dryers.

The BLIS is used to reduce pressures and friction losses which will reduce wear and tear on the pumps and increase pump longevity. The needle valves on the BLIS clog easily and when one valve clogs, the flow rates through the other needle valves are impacted, changing the consistency of the dewatered solids. Flow control valves were ordered to replace the needle valves. The flow control valves are reportedly less prone to clogs. The new valves will be installed next week. Additionally, three of the four cake pumps have been replaced and are back in service. One cake pump is still in repair. The cake pumps convey dewatered solids from the cake bin to the top of the dryer where the solids are then pressurized by dosing pumps into the dryer. It is expected that once the last cake pump is installed, the dryer can then achieve its full design capacity.

The condensing towers remove moisture from the air that comes from the dryers. It was discovered that the Screened Final Effluent (SFE) water contains bacteria that has been growing in the towers and has been clogging the system approximately every 20 days. The manufacturer performed testing and identified a chemical that will kill the bacteria so the towers can run for three to six months without cleaning, which is the expected frequency of routine maintenance on this system. The condensing towers will need to be placed out of service for two days in order to remove the clogged material, clean it, and replace it.

The stack temperature on the North Dryer’s thermal oil skid was found to be 200 degrees higher than normal. Kruger confirmed the gauge was reading accurately. It was discovered that there is a hole or crack that is allowing interior hot gas to pass directly through. The manufacturer believes there is an issue with the refractory in the heater and will be onsite the week of September 25th to repair the burner.

System Manager Tercala commented that there have been many issues with the various equipment items supplied by Kruger. The sludge bin is not providing the eight hours of holding time expected, there is significant buildup of dust in the dryer system, and there are issues with clogging of the condensing towers.

A question was raised at the last Board meeting about whether Kruger has installed macerators at other wastewater treatment plants where Kruger’s dryer equipment has been installed. Other Kruger sites do not use macerators; however, DUWA is now learning other sites have smaller screens at the headworks that remove much of the material that could clog the dosing nozzles. DUWA’s screens have a 12mm gap whereas other wastewater treatment plants use 3-5mm screens. The dosing nozzles are 9mm in diameter. Chairperson McLeod (Allen Park) commented that contrary to Kruger’s statements, the differences in screen size indicate that DUWA’s plant is in fact unique compared to other wastewater treatment plants that have used Kruger’s equipment.

Mayor Joseph Kuspa (Southgate) asked if using a finer screen has been considered. Jason Nash responded that the Veolia O&M team has installed a screen basket where the debris caught in the screens can be collected for further analysis. The debris will continue to be monitored before a decision is made to switch to a smaller screen size. Roberto Scappaticci (Romulus) asked the reason for waiting to change the screen size if it is known that the DWTF’s current screens allow larger debris to pass through. He expressed concern that the right solution is not being implemented due to the added costs noting that DUWA is already incurring additional costs in solids handling and disposal. Jason Nash responded that changing the screens is a very costly capital project as screens cost upward of $20M and the project would take six months to complete. He added that other solutions are being considered, such as addressing the issue operationally or screening only the material that goes to the solids handling facility. This solution would be much cheaper with an estimated cost of $1.5M. It is also important that the solution does not increase the effort required by Veolia’s O&M team. System Manager Tercala added that the task for Veolia O&M to open the nozzles and look for clogs takes about 10-15 minutes, which is not a big effort compared to implementing a large capital project to replace the screens at the headworks. Chairperson McLeod (Allen Park) commented that DUWA should not incur the cost of making the system right.

Jason Nash stated that screening was contemplated in the procurement phase of the project. System Manager Tercala followed and advised that Kruger did not define limits of their system. DUWA has existing grinders in place upstream of the Dryer project equipment. All project stakeholders were and are aware no additional sludge conditioning was put in place during the project. Further, Kruger did not indicate the limits of their equipment during the procurement or design phases to assess if additional sludge conditioning should be provided.

Mayor Tim Woolley (Taylor) stated that these issues continue to put more wear and tear on the other system components, which then requires DUWA to incur additional costs, such as those for solids disposal and natural gas.

Jeff Dobek (Riverview) asked when DUWA will consider pulling the performance bond. Attorney Fausone responded that the Fausone & Grysko team is working with Kruger’s legal counsel to develop a tolling agreement. He added that there is a challenge with pulling the performance bond because it would be difficult to find another company to complete this work since this is a unique system. It appears the technical issues are narrowing, but there is no indication when the issues will be resolved. Litigation would further lengthen the project’s timeline rather than working cooperatively with Kruger. Mayor Tim Woolley (Taylor) expressed his frustration with the numerous new issues that arise each month.

Mayor Joseph Kuspa (Southgate) asked what the dryer production chart should look like at optimal production. Jason Nash responded that the dryer production and dryer operating capacity lines should be equal and around the 90-100% range. It could be expected that there would be a drop in production for one or two days each month for maintenance. The dryers were at 0% capacity between May and July because the dryers were off to allow for repairs. The dryers were also off on August 20th to allow for maintenance and repair work on the cake bin and the cake pumps.

Roberto Scappaticci (Romulus) requested that Veolia O&M provide comment and input on the proposed solutions involving the dryer system since the O&M team will be maintaining the system into the future.

d. Pro Forma Update
Jason Nash (Veolia CPM) presented the updated pro forma to the Board (Attachment 7). The pro forma was updated by Tim Muirhead, of Veolia, based on the current status of dryer production and the current frequency of pump repairs. The pro forma assumes one dryer in operation at 70% capacity through the end of 2023 and assumes both dryers in operation at 80% capacity throughout 2024. The pro forma also assumes replacement of the pump rotors every four months, replacement of the pump stators every two months, and replacement of the cake pumps every three months. Based on these assumptions, the pro forma indicates that the total cost to DUWA in 2023 for sludge handling (hauling, disposal, chemicals, and utilities) is estimated to be about $3.5M compared to an estimated $5.3M if the solids were only dewatered and sent to the landfill (status quo). This results in about a $1.8M savings in 2023 compared to the status quo. The pro forma estimates a savings of about $2.6M in 2024 compared to the status quo cost. The savings are projected to increase each subsequent year.

The pro forma indicates that despite the many commissioning issues experienced with the dryers, DUWA is still realizing a cost savings with the use of the dryers. This pro forma demonstrates a realistic estimation of costs, but savings can be expected to increase beyond the pro forma estimations as the dryers reach their full operating capacities and with increased pump longevity.

Chairperson McLeod (Allen Park) asked why the cost for electricity and natural gas significantly increased between 2023 and 2024. Jason Nash responded that the increased costs for electricity and natural gas are due to the anticipated increased run times of the dryers. The pro forma assumed only one dryer in operation in 2023 but assumed both dryers to be in operation in 2024, which will increase the electricity and natural gas demand. Roberto Scappaticci (Romulus) asked if DUWA’s Accountant agrees with the values provided in the pro forma. System Manager Tercala responded that these inputs to the pro forma and DUWA’s budgets are from the technical team, not DUWA’s Accountant.

 

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

a. Wade Trim Assessment of Allen Park Tunnel Spur Sluice Gate
Veolia’s collection system team performed an inspection of the Allen Park Tunnel Spur sluice gate and discovered that the gate is inoperable due to electrical and control panel failures. The sluice gate is located at the intersection of Rosedale and Belmont in Allen Park. Wade Trim, one of DUWA’s as-needed engineers who also designed the tunnel, was requested to develop a proposal to perform a condition assessment of the sluice gate and to provide recommendations for repair.

Wade Trim’s proposal includes assessment of the existing condition of the electrical equipment and control panel, and also involves a confined space entry to assess the structural condition of the sluice gate and its components. Based on the condition assessments, Wade Trim will then develop recommendations for repair. Wade Trim’s proposed fee for this effort is $22,218 (Attachment 8). This request was reviewed by the Technical Committee and was recommended for approval.

Mayor Joseph Kuspa (Southgate) asked if any of DUWA’s other as-needed engineers provided proposals for the work and if the infrastructure failed earlier than expected. System Manager Johnson responded that Wade Trim was the engineer that designed the tunnel and thus had familiarity with the tunnel infrastructure so DUWA’s other as-needed engineers were not engaged. Jason Tapp added that the tunnel was installed in 1999 so the infrastructure is over 20 years old, which is a reasonable life expectancy for the sluice gate controls.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Jeff Dobek (Riverview) to authorize Wade Trim to perform a condition assessment of the Allen Park Tunnel Spur sluice gate for a not-to-exceed fee of $22,218. The fee would be paid from DUWA’s Tunnel Reserves. The motion passed unanimously by all attending members.

b. Secondary Clarifier Drive Repair and Tow-Bro Replacement
The secondary clarifier #3 arm caught the scum beach during normal operation causing an over-torque event. The two safety mechanisms in place, the shear pin and the electronic safety shut off, failed to trip the motor. Evoqua was onsite on August 17th to assess the damage, and they provided a quote for $29,444 for a replacement gear, drive tower seal, and shear pins. As a temporary fix, the Veolia O&M team removed the broken gear and installed a brass fitting and a new keyway to continuously run the clarifier. The Evoqua (OEM) replacement parts are necessary for a permanent fix.

Additionally, the Tow-Bro assemblies on secondary clarifiers #1 and #3 are experiencing corrosion. The existing coating on the secondary clarifiers has started to fail over the years due to the corrosive conditions (oxygen-rich sludge) experienced by the clarifiers. Corrosion of the coating has exposed the Tow-Bro mechanisms to corrosion as well. The Veolia maintenance team has been patching holes on the Tow-Bros for the past few years, but the holes are getting larger and more numerous causing reduced efficiency of the clarifiers. Thus, Veolia proposes to replace the existing hot-dipped galvanized steel Tow-Bros with stainless steel Tow-Bros, which will last longer in corrosive conditions.

Veolia was authorized to replace two Tow-Bro assemblies last year and plans to replace one Tow-Bro assembly this year and another next year as was budgeted in the Small Capital Budget. Veolia will prioritize the Tow-Bro replacement based on the Tow-Bro that is in the worst condition. Veolia will perform the installation of the Tow-Bro in-house. Veolia received a quote from Evoqua for $131,985.28 for one stainless steel Tow-Bro assembly.

The cost to DUWA for both the gear replacement and Tow-Bro replacement, inclusive of taxes and Veolia’s 10% markup, is $187,257.97 (Attachment 9). These requests were reviewed by the Technical Committee and were recommended for approval.

Motion by James Krizan (Lincoln Park) and supported by Roberto Scappaticci (Romulus) to authorize Veolia to purchase a secondary clarifier gear replacement and Tow-Bro replacement from Evoqua for a not-to-exceed fee of $187,257.97. This fee will be paid from DUWA’s Capital Outlay budget line item. The motion passed unanimously by all attending members.

c. Secondary Clarifier #4 RAS Pump Repair
Return Activated Sludge (RAS) Pump #4 is a submersible pump installed in secondary clarifier #3 that is used to continuously pump the settled sludge from the bottom of the clarifier back into aeration. An internal seal failed within the pump allowing water to get inside the pump’s electric motor which caused a short. The pump was sent to Kennedy Industries for immediate repair. The cost to repair the pump was $29,995. Veolia is requesting reimbursement for the cost of this repair and is not applying their 10% markup to the cost (Attachment 10). Veolia O&M used a crane to perform the reinstallation of the pump. This request was reviewed by the Technical Committee and was recommended for approval.

Motion by Jeff Dobek (Riverview) and supported by Greg Mayhew (Wyandotte) to authorize payment to Veolia for a fee of $29,995 for reimbursement of expenses related to repair of RAS Pump #4. This fee will be paid from DUWA’s Capital Outlay budget line item. The motion passed unanimously by all attending members.

 

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

a. July 2023 MOR
The July 2023 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting packet (Attachment 11). Highlights from the summary and other updates included the following:

• • • The plant continues to perform well as zero bypasses have occurred this year. A large storm occurred in August, with some Downriver areas receiving up to four inches of rain. The plant reached its secondary treatment capacity of 137.5 MGD, but bypassing was not necessary.
    • There are currently two positions available, which Veolia hopes to fill in the next few weeks. Two other positions were recently filled. One of the available positions is for an electrician. The current electrician has agreed to work part-time until the position can be filled.
    • The PACl trial isongoing and is proving to be very effective for phosphorous removal. Some ferric chloride is continuing to be added for odor control. PACl has a higher cost than ferric chloride, but is dosed at a lower rate.
    • Veolia is engaging USP Technologies to perform a pilot study to dose hydrogen peroxide for odor control. Veolia is working to install the safety shower and offload the necessary equipment to prepare for the pilot study in the coming weeks.
    • An industrial water skid was installed in the basement to feed and lubricate mechanical seals throughout the facility.
    • Two electrical vaults were found to be flooded. Veolia worked with Wyandotte Municipal Services to shut down the electrical feeds to the vaults so that the Veolia crew could safely enter the vaults. The vaults were dewatered and weep holes were plugged. Veolia will continue to monitor the vaults to prevent water accumulation.
    • The clutch drive on primary clarifier #4 was replaced.
    • As a result of the over-torque event on secondary clarifier #3, the brass gear broke and the arm was bent. The arm was bent back into place using a laser level, and is now back in operation.
    • The sludge grinder #2 was inspected. The sludge grinder grinds the sludge into small pieces before feeding it to the centrifuge for dewatering. Each tank has its own grinder, and it is important that its teeth remain sharp.
    • New lighting was installed in certain areas of the plant that were dark at night. The dryers are continuously run throughout the night, so it is important that there is adequate lighting as employees drive around the DWTF at night.
    • Routine groundskeeping continues to be performed.
    • Flow metering calibrations and battery and sensor replacements continue to be performed on the flow meters and level sensors deployed throughout the collection system.
    • Job Safety Analyses (JSA) are performed for every major task. The JSAs help the managers and employees identify and mitigate risks before doing the job. If the risks cannot be mitigated, the task is not performed. Veolia has not had a serious safety incident since implementing the JSA training.
    • An audit was performed on the DWTF’s confined spaces. Some labeling and signs were added where necessary.
    • There were 208 Miss Dig tickets received in July, of which 33 were emergency requiring a quick response time. 36 tickets required a site visit for physical marking.

Jason Tapp added that a significant amount of O&M labor has been required to keep the dryers online. The dryers have required about three to four O&M employees per day to maintain their operation. This reduces the amount of time the O&M team has to spend on other areas of the DWTF. Mayor Joseph Kuspa (Southgate) asked if the additional O&M effort due to the dryer issues is being tracked. Jason Tapp confirmed that the additional O&M effort due to the dryer issues is being tracked and can be shared with the Board.

b. Chemical & Sludge Price Updates
Jason Tapp presented the summary of commodity unit price changes to the Board (Attachment 12). Unit prices of the chemicals have not changed since July. The cost for hauling and disposal of the dried solids to LaSalle increased from $36.50/ton to $40/ton beginning in August. With the dryers offline, the cost to DUWA for hauling and disposal of the dewatered solids was about $497k in July. This cost included the extra cost for the additional truck hauling that was needed for disposal of the dewatered solids that were building up at the plant. The cost for sludge hauling and disposal is expected to be lower in August and September now that the solids storage levels at the plant are back to normal and with the intermittent operation of the dryers.

c. Biosolids Disposal Outlets
Jason Tapp stated that the sludge storage levels at the plant have returned to normal. Most of the biosolids are now being dried with the dryers in operation. The dried solids are hauled in a 100-yard truck. The weight of the dried solids is so light that it can be difficult to achieve a weight of 40 tons, which is approximately the maximum weight the truck can transport. Veolia is identifying ways to increase solids compaction to maximize the amount of dried solids that are hauled. Veolia currently loads about 30-35 tons of dried solids per truckload.

d. Existing Disinfection System Performance & Remaining Life Update
Jason Tapp stated that the construction of the UV system is expected to begin in the spring of 2024. Veolia is continuing to work with other utilities who have recently upgraded their UV systems to acquire their spare parts from their decommissioned Trojan UV4000 systems. Veolia recently purchased spare ballasts from another facility with a recently decommissioned Trojan UV4000 system. The spare ballasts, which are OEM parts, cost $1,000 each compared to Trojan’s cost of $2,600 each. OEM spare parts are much more efficient and effective than spare parts from third-party vendors.

 

8. TREASURER’S REPORT

a. FY2023-24 Budget Amendment
Accountant Doug Drysdale (DUWA’s Accountant; DNS Financial Services) presented the Fiscal Year 2023 Budget Amendment (Attachment 13). The original budget included a payment of $3.5M to Wayne County for the remaining payment related to the system transfer. The amended bond agreement, described in the Legal Update, now allows the $3.5M payment to be made over five years, with the first $700k payment due in October 2023. The $3.5M payment was planned to be paid from DUWA’s rate stabilization reserve, but Accountant Drysdale will work with OHM and Plante Moran (DUWA’s financial consultant) to determine whether the reduced payment of $700k will be paid from DUWA’s rate stabilization reserve, or if it could possibly be paid from the revenues generated from interest earnings instead. The budget amendment also includes purchase orders that were authorized in 2022 that are now being carried forward into 2023.

Motion by James Krizan (Lincoln Park) and supported by Mayor Joseph Kuspa (Southgate) to approve the Fiscal Year 2023 budget amendment #1 as presented by the DUWA Accountant. The motion passed unanimously by all attending members.

b. Aging AR
Accountant Doug Drysdale (DUWA’s Accountant; DNS Financial Services) presented the Aging Accounts Receivable report (Attachment 14). Accountant Drysdale stated that the total amount in the Accounts Receivable is approximately $2.7M, of which $2.3M is current within 30 days. There have been many questions surrounding the new invoicing with the new rate methodology that is now in place. River Rouge has an outstanding invoice over 60 days because they discovered that they had underpaid due to errors on their self-reporting worksheet. This will be corrected with their next payment.

Accountant Drysdale also stated that he has received payment from DTE after working closely with their finance department over the past few months. He will continue to work with Worthington and Univar, as well as the other corporate customers, to get their aged invoices paid.

c. Pending Invoices
Accountant Doug Drysdale (DUWA’s Accountant; DNS Financial Services) presented the invoice register for a request for payment. The invoice register was provided in the pre-meeting packet (Attachment 15). The invoice register included 32 invoices due for a total of $8,044,384.14. The largest invoices included those to US Bank for SRF bond payments, Veolia for three months’ worth of O&M and unit cost reconciliations, and Wyandotte for utility services.

Motion by Greg Mayhew (Wyandotte) and supported by Kevin Lawrence (Van Buren Township) to pay the invoice register. The motion passed unanimously by all attending members.

 

9. PUBLIC COMMENT
There was no public comment.

 

10. OTHER BUSINESS

a. Strategic Planning Workshop Reminder: September 14, 2023
Chairperson McLeod (Allen Park) reminded the Board that DUWA’s second strategic planning workshop will be held immediately following today’s Board meeting in the City of Taylor Council Chambers.

 

11. NEXT BOARD MEETING DATE: Thursday, October 12, 2023 (9:00 AM; In-Person)
Chairperson McLeod (Allen Park) reminded the Board that the next meeting would take place on Thursday, October 12, 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 Joseph Kuspa (Southgate) and supported by Rick Rutherford (Belleville) to adjourn the meeting. The motion passed unanimously at 10:10 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. August 10, 2023 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone & Grysko)
4. System Manager Report for September 2023 (by OHM Advisors)
5. UV Disinfection Replacement Project Update (by OHM Advisors)
6. Biosolids Dryer Facility Project August 2023 Monthly Progress Summary (by Veolia)
7. Updated Pro Forma for the Biosolids Dryer Facility Project (by Veolia)
8. Wade Trim Proposal for Condition Assessment of the Allen Park Tunnel Spur Sluice Gate
9. Request to Purchase a Drive Repair and Tow-Bro Replacement for Secondary Clarifier #3
10. Request to Reimburse Veolia for Repair of RAS Pump #4
11. Monthly Operating Report for July 2023 (by Veolia)
12. DWTF Unit Price Changes Summary (by Veolia)
13. FY2023 Budget Amendment (by Doug Drysdale)
14. Aged Accounts Receivable Report, dated September 7, 2023 (by Doug Drysdale)
15. Invoice Register, dated September 7, 2023 (by Doug Drysdale)