DOWNRIVER UTILITY WASTEWATER AUTHORITY
January 11, 2024 Meeting Minutes
CITY OF TAYLOR COUNCIL CHAMBERS

 

1. ROLL CALL AND INTRODUCTIONS
DUWA Chair Gail McLeod (Allen Park) called the 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 10 communities: Allen Park, Belleville, Brownstown Township, Dearborn Heights, 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 Mayor Bill Bazzi (Dearborn Heights) and supported by Mayor Joseph Kuspa (Southgate) to approve the Agenda. The motion passed unanimously by all attending members.

 

3. APPROVAL OF MINUTES FROM DECEMBER 14, 2023 BOARD MEETING
Copies of the meeting minutes from the December 14, 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 Brandon Grysko, of Fausone & Grysko, provided the Legal Update.

a. General Counsel Monthly Report
Attorney Grysko stated that a written summary of the monthly legal update was provided in the pre-meeting Board packet (Attachment 3). Attorney Grysko stated that the legal team has been involved in many meetings over the last month on the Biosolids Dryer project and on bonding for the UV project. The team has also worked on closing out the Walsh contract. The office was also consulted for drafting the agreement for the Taco Bell Class A permit.

 

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:

• • • The Board received a draft document of responses to EGLE’s NPDES permit renewal. The draft response letter was also circulated to the Technical and Legal Committees. Questions and comments are to be provided to OHM no later than January 19th as DUWA’s response is due back to EGLE on January 26th.
    • OHM and Veolia OM discussed funding sources with Debbie Dingell’s office, who advised us of Water Resources Development Act (WRDA) funding. OHM worked with Veolia OM to identify biological phosphorus removal as a possible project to be funded by this funding source. Biological phosphorus removal will help stabilize operating costs versus chemical treatment options. WRDA projects require alignment with the Army Corps mission statement(s). This project would allow the system to be more sustainable (Ecosystem Restoration) and resilient in case of chemical supply disruption (Emergency Management).
    • The System Manager authorized two procurements related to the Biosolids Dryer condensing tower improvements, and these will be discussed later in the meeting.
    • DUWA utilizes Google Workspace for file sharing. DUWA maintains five Google account licenses for use by DUWA’s Professionals. The cost is $12/user/month which equates to $720 on an annual basis for use of Google Workspace.
• • 
    i. Veolia O&M Fee Comparison
    System Manager Tercala reviewed the Veolia O&M Fee Comparison provided in the pre-meeting packet (Attachment 5). This document compares the Veolia OM actual annual fees to the previously projected fees (at the time of system transfer). It should be noted that contract scope changes that occur throughout the year also impact the fees. For 2024, Veolia’s OM fee is about $500k more than projected.

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 progressing towards the 90% detailed design. Black & Veatch, OHM, and Veolia OM met to review the 50% design submittal as well as the results of their Computational Flow Dynamic (CFD) model. Trojan will review the CFD model results and provide written comments, if any, to Black & Veatch’s model conclusions.

c. Biosolids Dryer Facility Project
Jason Nash (Veolia CPM) provided an update on the Biosolids Dryer Facility project to the Board (Attachment 7). The North Dryer was started on December 1st and the South Dryer on December 6th. Issues arose on December 12th with the south condensing tower, which is the tower that removes moisture out of the air. In coordination with the manufacturer, it was determined that the top pad was allowing air to flow freely and was not condensing properly. Pump tests were performed on December 13th, and it was discovered that 6 pumps were operating at 40% reduced capacity after 1500 hours (the equivalent of 2 months 24/7). The South Dryer had a run time of 1200 hours and was still functioning at full capacity, but a significant capacity reduction was noticed between running the dryer for 1200 hours versus 1500 hours. There is a high amount of degradation occurring within this short period of time. Two rubber stators on the pumps will be replaced with urethane stators that are more abrasive-resistant which should increase the run times on these pumps.

On December 18th, the mist eliminator was moved from the north tower to the south tower while the north tower was offline. The new mist eliminator operated well for a short period of time, but then clogging occurred in early January. Last Friday, it was learned that the numbers that were used to determine condensing tower functionality were wrong, and the new values will change the way the condensing towers are going to be maintained going forward.

Chairperson McLeod (Allen Park) asked who indicated that the numbers were incorrect. Jason Nash responded that the condenser manufacturer provided the initial information and then informed the team last week that the numbers were wrong. System Manager Tercala clarified that the condenser tower manufacturer’s support is through Kruger’s contract. Mayor Tim Woolley (Taylor) asked if the incorrect information increased the rate at which the condensing tower began to fail. Jason Nash responded that the new information changes the cleaning requirements as condenser tower components will need to be cleaned more frequently. He added that the incorrect set points are likely the reason that the condensing tower failed more quickly. He also added that Stantec is on site to identify options for chemically cleaning the condensing towers with a clean-in-place system, which will reduce the manual labor needed for cleaning.

Mayor Joseph Kuspa (Southgate) asked if the condensing towers are being maintained at a higher frequency than was originally planned and if the increased maintenance frequency will translate to additional costs. Jason Nash responded that this information is very new, so its impact has not yet been incorporated into cost projections. The chemical cleaning process will have an associated chemical cost per month, but the cost is not yet known until the cleaning system is trialed. Jason Nash added that originally, it was understood that the towers were to be cleaned when there were two inches of water column, but the most recent information indicates that cleaning is needed when the water column reaches 1.25 inches. A substantial amount of cleaning is needed to meet the 1.25 inches requirement. Mayor Joseph Kuspa (Southgate) asked if there is an estimate of how much more the condensing towers will need to be cleaned compared to what was expected. Jason Nash responded that originally it was not expected to have to remove the towers for cleaning as they could just be flushed, but at this current biofouling rate, the water columns indicate cleaning is needed after 6-8 weeks. It is not yet understood how often the towers will have to be cleaned given the new information on the cleaning requirements.

Mayor Bill Bazzi (Dearborn Heights) asked if there is a process to confirm that this new information is correct and whether a root cause of the issue was determined. Jason Nash responded that the condensing tower manufacturer claimed the information came from a different application of the same condensing tower, so the original numbers were not uniquely specified for the DWTF. He added that they have asked the condensing tower manufacturer to confirm the new values are correct.

Jason Nash presented an updated pro forma that was provided as a day-of handout. The pro forma is currently under review by the System Manager as it was only provided to the project team yesterday. Jason Nash said the updated pro forma shows the costs with how the dryer system is operating currently. The first table in the updated pro forma is based on the dryers running at 80% capacity, and not the contracted 91% capacity. As of right now, the dryers typically run at about 78% uptime. It is projected to cost $4.45M to operate the dryers and dispose of biosolids in 2024, including the additional cost for labor. Without the dryer project, it would cost DUWA $5.75M for biosolids disposal at the landfill. Even with the current limited operation of the dryers, DUWA is still expected to realize a cost savings of $1.3M in 2024. The second table in the updated pro forma includes operating costs expected at 100% dryer system capacity with a 91% uptime, which is the requirement outlined in the contract. With operation of the dryers at their contract capacity, DUWA would realize an additional savings of $1.15M in 2024 compared to biosolids disposal at the landfill, for a total cost savings of $2.45M in 2024.

Mayor Tim Woolley (Taylor) asked what the average dryer runtime was in 2023 as the numbers in the pro forma that are based on 78% uptime may be too optimistic. Jason Nash and Jason Tapp explained that the numbers were determined based on scheduling preventative maintenance to complete multiple tasks when the dryers are taken offline so that the dryers do not need to be taken offline as frequently. The duration of uptime was calculated by reducing the offline days from 144 days to 52 days assuming maintenance is scheduled and coordinated ahead of time so that maintenance tasks can be completed simultaneously while the dryers are offline. Jason Nash and Jason Tapp used their experience from 2023 and anticipated maintenance for 2024 to develop the numbers. It was also assumed that the peroxide dosing system will be in place to perform the chemical cleaning of the condensing towers, and the associated chemical cost was included in the table.

Roberto Scappaticci (Romulus) asked if a scenario can be added to the pro forma to show costs if the dryers only operate at 40% uptime throughout 2024. Jason Nash responded that he will create a pro forma to show the estimated costs if the dryers operate at 40% uptime for the year. Mayor Joseph Kuspa (Southgate) asked if DUWA can expect to realize an additional 85-90% savings if the dryers operate as intended. Jason Nash confirmed this to be accurate.

Attorney Steve Hitchcock (Romulus’ attorney) stated that it sounds like it is not yet known at what capacity the system can run consistently that would provide an accurate estimate of the costs associated with the normal wear and tear of the system. He added it is necessary to know if the design can handle the volume of sludge needed. Jason Nash responded that the pro forma shows the current repair maintenance costs, which include replacing pump rotors and stators every two months. He added that the North Dryer was run above 85% capacity for a couple weeks, and the South Dryer was run at 70% capacity, but was never run at full capacity. Pump failure occurred between 1200 to 1500 hours, and the time to failure did not appear to change based on the dryer capacity, which suggests the need to change stator materials to see if the more abrasive-resistant material will increase the pump run time before failure.

Attorney Kerry Morgan (Riverview’s attorney) asked if there may be a scenario of operating at a certain percent capacity that would result in annual replacement of the pumps rather than replacement every couple months. He asked if it would be realistic to operate at 10% capacity just to meet the maintenance and repair frequencies expected per the contract. Jason Nash responded that operation of the dryers in this manner would not be feasible with the current pump stator material type. If the pump stator material is changed to urethane, which is currently in progress on two pumps, operation of the dryers in this manner may be possible, but this would have to be trialed. Once the urethane stators are installed, the pumps will be run at 80%-100% capacity to see how many hours they can run before maintenance and repairs are needed. The true cause of the pump degradation is not yet known, but grit in the sludge may be a contributing factor. Attorney Kerry Morgan (Riverview’s attorney) asked if this issue is still in the diagnostic stage, and Jason Nash confirmed.

Attorney Steve Hitchcock (Romulus’ attorney) asked if there is a different pump manufacturer that could provide a pump that might work better for DUWA’s sludge. Jason Nash responded that no pump manufacturer will provide a guarantee on their product, and if grit is the cause of the pump degradation, then the pump manufacturer will suggest changing the stator material type as that is the preferred method rather than changing the design. Additional design modifications may also be needed with a different pump manufacturer. Mayor Joseph Kuspa (Southgate) stated that the dryer capacity at which the dryers operate as intended and with the maintenance frequencies expected in the contract needs to be determined. He also requested that Jason Nash provide monthly or weekly estimates of the dryer run times and capacities in order to better understand the dryer system’s reliability. Jason Nash responded that he will provide this information to the Board.

 

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

a. Biosolids Dryer Project Closeout Committee
System Manager Tercala stated that she had previously met with Board Officers to advise them that in May of last year, the Board had authorized a small group to support the Walsh project contract closeout. The small group’s purpose was to gain closeout of the Walsh contract. That group has completed its purpose. It is recognized that there is still a need to have that type of small advisory board associated with the Dryer Project given the issues that are currently at hand. A meeting was held with the Board Officers to discuss what that small group should look like. It was recommended that the small group include a representative from the legal team, the System Manager team, as well as the 2024 Board Officers (Attachment 8). The Officers were in agreement with the proposal and also discussed the option to have Technical Committee representatives. Jim Taylor supported the Walsh Small Group previously and the Officers suggested he be included again to provide input on technical items. Dearborn Heights’ Technical Committee representative was also suggested to be included in the small group. An update on the form of the new small group will be provided to the Board at a later date.

b. Biosolids Dryer Project Condenser Tower Reliability and Serviceability Needs
Motion #1:
System Manager Tercala reviewed the need for condenser tower improvements per Stantec’s advisement. Each dryer has a cylinder (condensing tower) that is responsible for evaporating the moisture from the biosolids. The towers have two different types of media in them: a demister and packed bed media. The demister is similar to a SOS pad, and the packed bed media is similar to a whiffle ball. Biofouling is occurring at both media types. This impacts the efficiency of the condenser towers and has impacted the ability to generate Class A biosolids on certain days. Further, fog has been observed in the dryers and water has accumulated and pooled at the bottom of the dryer system. Cooling water for the condenser towers is from screened final effluent (SFE), which is water taken from downstream of the UV system. City water is not used as SFE is much cheaper on an annual basis. However, the use of SFE has led to biofouling of the media, and it is necessary to minimize or eliminate the amount of biofouling in the towers as it is impacting the dryers’ efficiency and run times. Improvements to the towers were identified by Stantec (DUWA’s third-party advisor) along with their benefits and the engineer’s opinion of probable costs, as summarized in the pre-meeting packet (Attachment 9). Five recommended improvements were reviewed. The following two items already received System Manager authorization:

• • • • Procurement of spare condensing tower media – it was identified that dryer ‘down time’ would be reduced if there was more spare media on site. This increases condenser and dryer operating times and will eliminate shipping times to obtain replacement media. Cost has been quoted at $3,695.
      • Procurement of one spare condensing tower mist eliminator – this will eliminate the delay time for mist eliminator soak/cleaning, and will increase the condenser and dryer operating times. Cost has been quoted at $18,020.

The following three items are requested for Board authorization today:

• • • • Replace condensing towers’ DPIT sensing lines, which are indicators for the differential pressures. This will improve instrument accuracy and maintenance access as well as reduce O&M labor. Capital cost has been quoted at $22,000.
        • Stantec is currently soliciting bids for this work, but a cost authorization for a not-to-exceed amount is requested.
      • Install permanent condensing tower clean-in-place system for biofilm and scale removal – cleaning is currently performed out of place, but preference is for a clean-in-place system on the condensing towers. This will reduce the frequency of media removal from the condensing towers, reduce the maintenance duration, increase available dryer operating time, and reduce O&M labor. The capital cost has been estimated at $100,000 while the anticipated O&M cost is $5k-$10k per month. Cost authorization of a not-to-exceed amount of $100k is requested.
      • Install chemical system to add persistent disinfectant into the final effluent water supplied to condensing towers – this would reduce condenser tower maintenance, increase dryer operating time, improve operator control of flush water, replace hydrogen sulfide-oxidized copper with corrosion-resistant PVC, and reduce O&M labor. Capital cost has been quoted at $50k.
        • Stantec has indicated that this item is the linchpin that is preventing generation of Class A biosolids.

Stantec recommends these items to resolve the current condensation tower issues. Based on timing of this information, these requests were not presented to the Technical Committee for consideration, but the Walsh small group has been advised of this information.

Mayor Bill Bazzi (Dearborn Heights) asked who will be performing the recommended work. System Manager Tercala responded that Stantec has only reached out to one contractor so far to assess availability. This contractor has worked at the site before and performed well for Veolia OM. Other contractors may be solicited for bid. Mayor Joseph Kuspa (Southgate) commented that he is not comfortable with the idea of committing the amount of money requested today as there is uncertainty whether it will operate as intended and fully resolve the condensing tower issues. He asked whether the clean-in-place system has been used elsewhere and if there is confidence that it will operate as intended. System Manager Tercala responded that she will ask Stantec to provide technical comment to these questions. Jason Tapp, of Veolia OM, stated that he is unfamiliar with the system Stantec is suggesting so Veolia OM is relying on Stantec’s recommendation. However, he added that if this cleaning system does not work, city water would have to be used for cooling, which would add a $2M annual operating expense.

Mayor Joseph Kuspa (Southgate) clarified that he understands that item 5 relates to treating the water and reducing maintenance, but he wants to ensure that the clean-in-place system is reliable and proven due to the high cost. System Manager Tercala responded that both items are water treatment investments, and Jason Tapp indicated that if city water were used instead of the SFE water currently used, there would not be as much biomass accumulation. These requests are related to issues that are caused by the water quality of the SFE water. City water would require hardness treatment, which had been contemplated by Kruger during the design phase. Mayor Joseph Kuspa (Southgate) stated he would be more comfortable with the authorization knowing that these proposed improvements are capable of performing the cleaning necessary and have operated as intended at other facilities. Chairperson McLeod (Allen Park) asked if the motions can be made with the caveat that Stantec provides assurance that this is a proven technology. Roberto Scappaticci (Romulus) stated that he is uncomfortable with this authorization as there are still many unknowns with the system and it seems these authorizations relate to experimenting with the system to see what works.

Lou Arapakis (River Rouge) asked if the cost savings offset the $2M per year if city water was used. Jason Nash responded that if DUWA only landfilled the biosolids, the pro forma shows it would be an extra $1.2M per year, which does not cover the $2M cost for city water. Roberto Scappaticci (Romulus) asked what the original expected costs for water were and also asked why DUWA is requested to fund the replacement of the DPIT sensing lines that were built by someone else. System Manager Tercala responded that Kruger identified the need for the sensing lines and Walsh installed them. Veolia CPM and Kruger reviewed the installation per Kruger’s design. Kruger feels that the replacement of the sensing lines is something Walsh should do as they feel it is an installation issue. Walsh feels that if Kruger did not agree with the way it was installed, then they should not have approved its installation. Given this disagreement, it is currently being requested to be covered by DUWA at this time in order to move forward towards consistent operation of the dryers. The average daily cost savings of running the dryers is $7500 compared to the status quo in hauling biosolids to the landfill.

Roberto Scappaticci (Romulus) asked if this item has been reviewed by the Legal and Technical Committees. Attorney Grysko stated that this authorization request has not been presented to the Legal Committee. System Manager Tercala stated this item has not been discussed with the Technical Committee based on timing of their meetings. Roberto Scappaticci (Romulus) stated that this request should be reviewed by these committees as he does not feel the sense of urgency to approve the request given that the system is not operating. System Manager Tercala stated that today’s request is based on Stantec’s technical advisement and expertise. The authorizations are being requested to save DUWA money in the long run. The amount DUWA pays for sludge hauling to landfills is excessive so approving the costs to get the dryers online and increase their efficiencies reduces current uncontrolled spending.

Roberto Scappaticci (Romulus) asked what the return on investment is compared to costs incurred if this work is not authorized. Jason Tapp responded that Veolia pays $44.50 per ton to haul and dispose of dried product from the dryer, and Stantec can provide insight as to what the total savings would be. System Manager Tercala stated that the cost of commodities, summarized in the pre-meeting board packet, shows the actual costs for solids handling and disposal of the biosolids compared to what was included within Veolia’s contract. When the system is not online, DUWA spends over $100k more on a monthly basis than what would be spent if the dryer system was online. Roberto Scappaticci (Romulus) asked if this would be considered a potential damage and whether DUWA would have the duty to mitigate its damages. Attorney Grysko responded that this would be considered a potential damage, and that in litigation, the plaintiff has the duty to mitigate its damages. DUWA would have to show the amount of damages.

Mayor Joseph Kuspa (Southgate) asked what the costs would be if everything is done to try to address the problem but it does not work. Attorney Grysko responded that it would likely have to be litigated. Mayor Joseph Kuspa (Southgate) asked if there would be a legitimate cost to litigate. Attorney Grysko responded that that would likely be DUWA’s claim and it would also show that DUWA has attempted to work with the failures prior to bringing forth litigation.

Mayor Tim Woolley (Taylor) asked if Stantec has been providing useful evaluations and information. Jason Tapp responded that he has been impressed with their information so far. Mayor Tim Woolley (Taylor) expressed frustration and stated that he feels like the Board continues to be asked for authorizations in high dollar amounts to fix things with the Dryer System. Mayor Bill Bazzi (Dearborn Heights) added that all Dryer Project costs authorized to date need to be tracked, particularly for litigation purposes. He suggested that costs authorized or incurred beyond the original quotes for the equipment or services should be reviewed each month to understand whether DUWA is actually saving costs by selecting the lowest bidder. This evaluation can be performed for future projects as well. Mayor Tim Woolley (Taylor) added that he understands costs would be higher without the dryer system, but actual costs incurred including additional maintenance and repair items should be tracked and evaluated to understand how much DUWA is actually saving with the current dryer system compared to the status quo of landfilling biosolids.

Mayor Joseph Kuspa (Southgate) stated that he wants assurance that these requested items are valid applications with proven technologies before authorizing these requests. System Manager Tercala responded that Kruger would likely state that they have not used the technology as it relates to biofouling minimization in a dryer system; however, Kruger may be able to state that they have installed a clean-in-place system with citric acid to address water hardness or another water quality issue. Stantec would be able to state that they have used a chemical cleaning process to address biofouling, but not on a dryer system. Mayor Joseph Kuspa (Southgate) asked about the media cleaning process and whether the cleaning chemicals used are proven to be effective. He also asked for confirmation that the chemicals to be used are effective after testing is complete. Jason Nash responded that there are multiple options for chemicals with different applications, but the challenge in selecting a cleaning chemical is attributed to the stainless steel material. Chlorine is the easiest and cheapest chemical to use, but it could degrade the material. A bleach solution does a great job of cleaning the media. Hydrogen peroxide is also an option as peroxide is an oxidizer, but a test will be needed to see how it interacts with the media and the inside of the condensing towers. Mayor Joseph Kuspa (Southgate) asked if the condensing tower is operational when cleaning. Jason Nash confirmed that the tower is operational when cleaning.

Roberto Scappaticci (Romulus) expressed frustration in that Veolia OM did not expect to have to clean the condensing towers, but now a cleaning system has to be installed. He added that the cleaning system is necessary to mitigate DUWA’s liability, but this should not be DUWA’s responsibility to fix if the problem lies with the system that was provided to DUWA. Lou Arapakis (River Rouge) asked if these problems would exist if city water was used. Jason Tapp responded that there would still be some biomass growth, but not nearly as much.

Mayor Joseph Kuspa (Southgate) stated that he would like these requests to be reviewed by the Technical and Legal Committees for their input and approval. He also asked if there is a way to use a combination of city water and SFE water. System Manager Tercala responded that in order to support cycling information through the Committees, she can get a written statement from Stantec answering the technical questions and provide it to the Board and the Technical Committee. Attorney Grysko can cycle it through the Legal Committee for feedback. Mayor Bill Bazzi (Dearborn Heights) asked to amend the motion to stipulate that the Board accept the motion based on the Technical Committee’s recommendation.  

Roberto Scappaticci (Romulus) stated that he agrees that additional review is needed, and is concerned that most municipalities do not have a technical person who is familiar with and fully understands the dryer system and what the maintenance entails. He is also of the opinion that a legal review is needed prior to authorization. Attorney Grysko clarified that DUWA does have an obligation to mitigate damages to the best of its ability.

Attorney Kerry Morgan (Riverview’s attorney) asked how the $2M estimated cost for use of city water was developed, and whether Stantec should look into this option as an alternative. Jason Tapp responded that he generated the number based on a flow demand of 400 gallons per minute and stated that Stantec is aware of the cost estimate for consideration. Attorney Kerry Morgan (Riverview’s attorney) stated that he does not believe these requests are driven by imminency, but rather are driven by the additional time and labor that will be incurred to remove, clean, and replace the media.

System Manager Tercala asked Jason Nash to clarify each of the items and their purposes before the Board and indicate how critical they are to the project. Jason Nash provided information detailing why each item is crucial to the consistent and reliable operation of the dryer system. System Manager Tercala added that with these systems in place, a reduction in the dryer down time and labor effort associated with maintenance is expected. 

Mayor Joseph Kuspa (Southgate) stated that the items presented today are maintenance related and that the water saving estimate is the most accurate dollar figure available at this time.

Attorney Grysko expressed concern regarding receiving input from outside bodies and public decision making as he stated that it is the Board’s decision whether to authorize the request. Mayor Joseph Kuspa (Southgate) clarified that he would like to receive concurrence from the Technical and Legal committees as the Board would be more comfortable approving the requests with concurrence from both of those committees. Attorney Grysko stated that the Board can receive input from the Committees but cannot ask them to vote as it must be a Board decision. Mayor Bill Bazzi (Dearborn Heights) suggested that each individual reply to the System Manager if they have concerns, and the System Manager can inform the Board of any major concerns. System Manager Tercala stated she can circulate the information to the Committees. Roberto Scappaticci (Romulus) suggested that Survey Monkey be used to circulate the survey to the Committees to receive concurrence of lack thereof on the requests. The survey results could be shared with the Board at the next meeting. Attorney Grysko stated that this approach would be acceptable, but this will delay approval until the next meeting. Mayor Joseph Kuspa (Southgate) stated that soliciting feedback from the Technical and Legal Committees is encouraged prior to bringing future requests to the Board for approval.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Mayor Bill Bazzi (Dearborn Heights) to authorize the System Manager to solicit competitive bids and secure a contractor to perform recommended Items 3-5 for a not-to-exceed fee of $172,000 after the System Manager receives input from both the Technical and Legal Committees on this request. The costs will be paid from DUWA’s Capital Outlay – Biosolids Dryer Project budget line item. The motion passed unanimously by all attending members.

Motion #2:
System Manager Tercala presented the request for purchase of a scissor lift to be used by Veolia OM staff at the DWTF (Attachment 9). Jason Tapp, of Veolia OM, stated that he has been told that scissor lifts are not always readily available when they need them because they must be contracted out for rental. It would be beneficial to have one onsite because Veolia OM often does not know how long they will need to use the lift. Renting the equipment costs about $700/week. There is a business case to owning versus renting, especially to mitigate system downtime.

Greg Mayhew (Wyandotte) asked if the scissor lift can be used at other locations around the DWTF, and Jason Tapp confirmed that it can be used at other locations around the DWTF. Mayor Bill Bazzi (Dearborn Heights) asked who would be responsible for maintenance of the lift. Jason Tapp responded that Veolia would be responsible for handling the maintenance.

Roberto Scappaticci (Romulus) asked who would own the scissor lift and who would be purchasing it. System Manager Tercala responded that the expectation was that Veolia would purchase the lift. Roberto Scappaticci (Romulus) asked if the request is to authorize DUWA funds for Veolia to purchase the lift. System Manager Tercala confirmed this process, but noted that DUWA could also revisit the option to own its off-road vehicles. Roberto Scappaticci (Romulus) requested that the original contract with Veolia be reviewed to identify who is responsible for providing vehicles. He added that he agrees that Veolia needs the lift, but the contract should be reviewed to determine who is responsible for providing Veolia’s vehicles and equipment. System Manager Tercala responded that she will review the contract to see the exact language regarding vehicles and equipment as this is not an immediate need request. Since timing of this request is not critical, the request for motion was tabled.  

c. ESRI GIS License Renewals
DUWA’s GIS database is stored on an online platform hosted by ESRI. Veolia OM also has access to this GIS database so that they can make updates to the GIS as needed. Communities may also request a copy of DUWA’s GIS database if desired. The total cost for four GIS licenses for this year is $1,430 (Attachment 10). The cost increased by $130 compared to last year’s cost. Last year’s motion for renewal authorized the former cost, but the cost has now increased so a Board motion to authorize the increased cost is requested.

Motion by Rick Rutherford (Belleville) and supported by Roberto Scappaticci (Romulus) to approve the renewal of four ESRI ArcGIS Online software licenses for a total cost of $1,430. The licenses will be paid from DUWA’s Plant Operations – Miscellaneous Expenditures budget line item. The motion passed unanimously by all attending members.

d. Dykema Invoice for 2018 Wayne County Bond Amendment Support
Fausone & Grysko worked with Dykema (DUWA’s Bond Counsel) to understand nuances associated with the amendment of the 2018 Wayne County Bond to convert the $3.5M lump sum payment due in September 2023 to a payment plan over five years. Wayne County was amenable to the bond amendment and the bond amendment agreement was authorized by the Board and Wayne County. Dykema has provided an invoice in the amount of $13,395.66 for their services associated with support of the bond amendment (Attachment 11).

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Rick Rutherford (Belleville) to approve the payment of Dykema’s invoice in the amount of $13,395.66 for their effort in supporting the Wayne County Bond Amendment. This invoice will be paid from DUWA’s Attorney Fees line item of the budget. The motion passed unanimously by all attending members.

e. UV Disinfection Replacement Project – Bond Underwriting Services
System Manager Tercala introduced Kari Blanchett, of PFM, who acts as DUWA’s Financial Consultant, to present PFM’s recommendation of bond underwriter associated with the 2024 Series Bond.

The underwriter finds investors to purchase the bonds from the Authority. The underwriter offers the bonds for sale to investors, and investors will provide an offer to purchase the bonds. PFM issues a RFP for bond underwriter services and eight bids were received for a senior management underwriter. Per PFM’s review of the proposals, PFM recommends that J.P. Morgan be selected as the underwriting firm. J.P. Morgan was the underwriter for DUWA’s 2018 financing during the system transfer and DUWA was happy with their performance. J.P. Morgan also has a large capital position and can afford substantial bond purchases without the need for investors. J.P. Morgan also submitted the second lowest fee.

Chairperson McLeod (Allen Park) asked if this bond amount would be supplemental to the $10M that DUWA will receive from the State. System Manager Tercala responded that the bond is supplemental to the $10M earmark.

Motion by Jeff Dobek (Riverview) and supported by Mayor Bill Bazzi (Dearborn Heights) to approve J.P. Morgan as the bond underwriter for the Revenue Bonds to finance the UV Replacement Project and other critical projects and repairs. The motion passed unanimously by all attending members.

 

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

a. Plant Performance
Jason Tapp, of Veolia, reported that Veolia continues to dose ferric chloride for odor control. Hydrogen peroxide is not currently being dosed, but some hydrogen peroxide remains onsite that may be used for the cleaning system on the condensing towers.

b. November 2023 MOR
The November 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:

• • • • Veolia OM staff completed a large job with the condensing towers and the packing media.
      • Annual pump maintenance has been scheduled.
      • Some minor work and preventative maintenance was performed on several pumps to bring them back into service.
      • Ports and valves were installed on the hydrogen peroxide dosing system to help reduce fumes.

c. Chemical & Sludge Price Updates
Jason Tapp presented the summary of commodity unit price changes to the Board (Attachment 13). There have been no significant increases on chemical unit pricing, but the cost for sludge hauling has increased by a few dollars for 2024.

d. Existing Disinfection System Remaining Life Update
Jason Tapp stated that Veolia found wholesale spare parts to help extend the life of the existing UV system. The power on the UV system was turned down to 80% and the system is still able to kill the same amount of bacteria. The UV system is working well.

Veolia OM will meet with EGLE to discuss maintaining plant operation during construction of the new UV system. EGLE has indicated that they are receptive to the idea of working on one UV channel at a time during construction so as to limit the channels that would be out of service simultaneously. A supplementary bleach system may also be considered to be used for disinfection, particularly during high flow events, if needed.

 

8. TREASURER’S REPORT

a. Aging AR
Treasurer Jason Couture (Taylor) presented the Aging Accounts Receivable report (Attachment 14). Treasurer Couture stated that the total amount in the Accounts Receivable is approximately $631k of which 57% is less than 90 days delinquent. He also noted that River Rouge has several outstanding invoices over 90 days totaling about $153k and Dearborn Heights has an outstanding invoice over 90 days in the amount of about $59k. Treasurer Couture asked the Board Commissioners of these two communities to work with their finance departments to submit payments for these invoices.

b. Pending Invoices
Treasurer Jason Couture (Taylor) presented the invoice register for a request for payment (Attachment 15). The invoice register included 25 invoices due for a total of $405,944.91. The largest invoices included those to Black & Veatch for engineering design of the UV project and Wyandotte Municipal Services for utility services.

Motion by Greg Mayhew (Wyandotte) and supported by Mayor Joseph Kuspa (Southgate) 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. CY2024 Board Officer Elections
Chairperson McLeod (Allen Park) introduced the proposed slate of Board Officers for 2024 as follows (Attachment 16):

• • • • Chair – Mayor Gail McLeod (Allen Park)
      • Vice Chair – Mayor Joseph Kuspa (Southgate)
      • Secretary – Roberto Scappaticci (Romulus)
      • Treasurer – Jason Couture (Taylor)

Motion by Rick Rutherford (Belleville) and supported by Mayor Bill Bazzi (Dearborn Heights) to elect Mayor Gail McLeod (Allen Park) as Chair. The motion passed unanimously by all attending members.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Roberto Scappaticci (Romulus) to elect Mayor Joseph Kuspa (Southgate) as Vice Chair. The motion passed unanimously by all attending members.

Motion by Jeff Dobek (Riverview) and supported by Mayor Tim Woolley (Taylor) to elect Roberto Scappaticci (Romulus) as Secretary. The motion passed unanimously by all attending members.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Rick Rutherford (Belleville) to elect Jason Couture (Taylor) as Treasurer. The motion passed unanimously by all attending members.

 

11. NEXT BOARD MEETING DATE: Thursday | February 8, 2024 (9:00 AM; In-Person)
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 Mayor Joseph Kuspa (Southgate) to adjourn the meeting. The motion passed unanimously at 11:23 AM.

 

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 Mayor Joseph Kuspa (Southgate) to adjourn the meeting. The motion passed unanimously at 11:16 AM.

 

Meeting Minutes Prepared by:
Kelly Quinlan  |  Fausone & Grysko

Meeting Minutes Reviewed by:
Lambrina Tercala, DUWA System Manager  |  OHM Advisors

 

ATTACHMENTS

1. Meeting Agenda
2. December 14, 2023 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone & Grysko)
4. System Manager Report for January 2024 (by OHM Advisors)
5. Veolia Annual O&M Fee Comparison (by OHM Advisors)
6. UV Disinfection Replacement Project Update (by OHM Advisors)
7. Biosolids Dryer Facility Project December 2023 Monthly Progress Summary (by Veolia)
8. Request for Establishment of Biosolids Dryer Project Closeout Committee
9. Biosolids Dryer Project Condensing Tower Reliability and Serviceability Needs
10. ESRI GIS Software License Renewal Quote
11. Dykema Invoice for Support of the 2018 Wayne County Bond Amendment
12. Monthly Operating Report for November 2023 (by Veolia)
13. DWTF Unit Price Changes Summary (by Veolia)
14. Aged Accounts Receivable Report, dated January 4, 2024 (by Doug Drysdale)
15. Invoice Register, dated January 4, 2024 (by Doug Drysdale)
16. 2024 Board Officer Elections