DOWNRIVER UTILITY WASTEWATER AUTHORITY
August 8, 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 11 communities: Allen Park, Brownstown Township, Dearborn Heights, Ecorse, Riverview, River Rouge, Romulus, Southgate, Taylor, Van Buren Township, and Wyandotte. A quorum (at least 7 members) was present.

a. DUWA Commissioners
The DUWA Board Commissioners present at the time of roll call introduced themselves as follows: Roxie Fairchild (Brownstown Township), Mayor Bill Bazzi (Dearborn Heights), David Hall (Ecorse), Mayor Joseph Kuspa (Southgate), Chairperson and Mayor Gail McLeod (Allen Park), Roberto Scappaticci (Romulus), Jeff Dobek (Riverview), Lou Arapakis (River Rouge), Mayor Tim Woolley (Taylor), Kevin Lawrence (Van Buren Township), Greg Mayhew (Wyandotte).

b. Other Meeting Attendees
Board meeting attendees present in the audience at the time of roll call introduced themselves as follows: Jim Taylor (Van Buren Township), Gerald Barr (Allen Park), Kerry Morgan (Riverview attorney), Steve Hitchcock (Romulus attorney), Souheil Sabak (C.E. Raines), Rumzei Abdallah (Plante Moran), Seth Harper (Plante Moran), Jim Fausone (Fausone & Grysko; DUWA Legal), Brandon Grysko (Fausone & Grysko; DUWA Legal), Doug Drysdale (DNS Financial Services, DUWA Accountant, Southgate Finance Director & Assistant City Manager), Jason Nash (Veolia CPM for Dryer project), Jason Tapp (Veolia OM), Travis Tuma (Veolia OM), Lambrina Tercala (OHM Advisors, DUWA System Manager), Mackenzie Chamberlain (OHM Advisors, DUWA System Manager).

 

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

 

3. APPROVAL OF MINUTES FROM JULY 11, 2024 BOARD MEETING
Copies of the meeting minutes from the July 11, 2024 Board meeting were included in the pre-meeting Board packet (Attachment 2). Motion by Jeff Dobek (Riverview) 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 the legal team supported matters and participated in meetings related to the Biosolids Dryer Project and developed proposed revisions to the Articles of Incorporation and Bylaws. The legal team also participated in various Legal Committee, Technical Committee, and Finance Committee meetings.

b. Proposed Changes to Articles of Incorporation
Attorney Fausone presented the draft revised Articles of Incorporation (AOI) that reflect the proposed change in the fiscal year from the current January – December period to the July – June period to align with the rate year (Attachment 4). The revised AOI also include several other minor changes, such as changing DUWA’s official mailing address to be at the DWTF instead of in Taylor. The proposed changes have been reviewed with the Board Officers over the past couple of months. The AOI were first adopted before DUWA took ownership of the system, and have not been updated since.

Attorney Fausone stated that no motion is being requested today, but encouraged the Board Commissioners to review the proposed changes and provide him with any questions or comments within the next couple of weeks. The revised AOI will then be brought to the Board for approval next month. Following Board approval, the revised AOI will need to be approved by each member community’s Council or Board to take effect.

c. Request to Set Special Meeting with Closed Session
Attorney Fausone stated that after recent discussions with the Board Officers, Chairperson McLeod (Allen Park) is going to call a Special Meeting with closed session to discuss the Biosolids Dryer Project contract status as well as the Dryer contract legal issues and litigation strategies. The Special Meeting will tentatively be held on September 19, 2024 at 10:00 AM at the Romulus Athletic Center in Romulus, which is the same location as the special meeting that was held back in February 2024 (Attachment 5).

In order to go into closed session, the Board must vote on a motion to hold a closed session meeting prior to the date of the Special Meeting. Each community’s Board Commissioners, alternate delegates, elected officials, and legal counsel are invited and encouraged to attend the Special Meeting. Lunch will be provided. Attorney Fausone also reminded the Board that the next regular Board meeting will take place on September 12, 2024 at the City of Taylor. OHM Advisors will send out a meeting invite for both the next regular Board meeting and the Special Meeting.

Mayor Bill Bazzi (Dearborn Heights) asked if the Technical Committee will be invited to attend the Special Meeting. Attorney Fausone responded that the Technical Committee will not be invited to attend. He added that he will inform the Legal Committee of the upcoming Special Meeting during the next Legal Committee meeting later this month.

Motion by Mayor Tim Woolley (Taylor) and Mayor Joseph Kuspa (Southgate) to hold a closed session on September 19, 2024 during a special meeting of the DUWA Board for the reasons allowed per Open Meetings Act, MCL 15.268(e) and (h). A roll call vote was taken, and the motion passed with 86% of the vote (affirmative vote by all attending members).

d. Agreement for Continued Legal Services
Attorney Fausone stated that Fausone & Grysko’s legal services agreement with DUWA expires on October 20, 2024. If desired by the Board, Fausone & Grysko requests renewal of the legal services agreement to extend until December 31, 2027. DUWA’s other professional services contracts with Plante Moran and DNS Financial Services expire on December 31, 2024, thus Fausone & Grysko requests an extension of the agreement until December 31, 2027 to align with the proposed timelines of the other pending professional services contract renewals. It is also expected that the new System Manager contract will extend through December 31, 2027 as well. If the Board does not desire to continue working with Fausone & Grysko, then a Request for Proposals for legal services will need to be developed for public bid before the current contract expires in October. Fausone & Grysko proposes to continue providing legal services to DUWA at an hourly rate of $252 per hour for partners with a 4% annual increase in the hourly rate (Attachment 6).

Mayor Joseph Kuspa (Southgate) asked when the 4% increase in the hourly rate will be applied. Attorney Fausone responded that the $252 per hour rate will increase by 4% beginning in January 2025, then will increase by another 4% each year thereafter.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Mayor Bill Bazzi (Dearborn Heights) to authorize the Chair or Vice Chair to execute Fausone & Grysko’s legal services contract extension agreement. A roll call vote was taken, and the motion passed with 86% of the vote (affirmative vote by all attending members).

 

5. SYSTEM MANAGER UPDATE
System Manager Mackenzie Chamberlain, 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 7).

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

• • DUWA is still pending EGLE’s response to the NPDES Permit renewal response letter that was submitted in January 2024.
  • As it relates to the Biosolids Dryer Project, OHM has reached out to an alternate pump supplier and coating specialists to explore alternative options for pump rotor refurbishment. System Manager Lambrina Tercala can provide additional information upon request.
  • OHM has been working with DUWA’s natural gas supplier to assess the opportunity to sell off future months’ gas at more opportune times to achieve a larger payback. Options are also being explored to install an automated meter reading device at the DWTF to provide for near real-time readings to help assess and project DUWA’s natural gas usage.
  • HRC has reviewed the four bids received for the PLC-5 replacement project and their recommendation of contractor will be presented to the Technical Committee for consideration later this month. HRC’s proposal to provide construction administration services for the construction phase of the work will also be brought forward to the Technical Committee later this month for recommendation, then will be brought forward to the Board for approval in September.
  • The lab dishwasher at the DWTF has failed and requires replacement. Request to approve replacement of this dishwasher will be presented later in this meeting.
  • Under Professional Services Contracts, OHM has developed an RFP for a new System Manager as OHM’s contract expires in September. The RFP is under review by DUWA’s legal team and Officers and is planned to be publicly posted for bid later today. OHM is also working on compiling a Selection Committee to review the proposals. OHM will continue to support DUWA on the transition to the new System Manager and on the Biosolids Dryer Project closeout. Other Professional Services contracts expiring later this year include Fausone & Grysko, Plante Moran, and DNS Financial Services, all of whom will seek a contract renewal.
  • OHM is working with the Wayne County Airport Authority to explore potential grant funding opportunities that might be applicable for rehabilitation of the stretch of the Eureka Interceptor that extends under the airport runway as this interceptor has experienced structural degradation due to hydrogen sulfide attack and is recommended to be lined within the next 10-15 years per HRC’s review.
  • Under DWTF Items, a recent internal audit of the DWTF identified the need to develop a Spill Prevention, Control, and Countermeasures Plan as required by the EPA for the diesel storage tanks for the generators at the DWTF. A Pollution Incident Prevention Plan and Emergency Action Plan must also be prepared as required by EGLE. OHM reached out to DUWA’s three as-needed engineers to solicit their availability to develop these plans, and HRC was the only firm willing and available to assist with this effort. Their proposal to develop these plans has been reviewed and will be presented to the Technical Committee for recommendation later this month.
  • OHM is working with Veolia to draft an update to DUWA’s Sewer Use Ordinance to address some corrections that need to be made per EGLE’s recent audit of the Industrial Pretreatment Program. The revised SUO will be provided to Fausone & Grysko, the Technical Committee, and the Board for review. The revised SUO must take effect by December 31, 2024. It is expected that the SUO will be updated again in 2025 once the new PFAS local limits are finalized.
  • OHM continues to coordinate with DUWA’s insurance provider on DUWA’s cybersecurity needs and has also reached out to other entities to request similar cybersecurity assessment scopes for consideration.

b. UV Disinfection Replacement Project Update
System Manager Chamberlain provided an update on the UV Disinfection Replacement Project to the Board (Attachment 8). A pre-construction kickoff meeting was held on July 15th with Black & Veatch, CCC, Veolia, OHM, the UV Project Subcommittee, and EGLE. EGLE asked a variety of questions related to the proposed UV system shutdowns and temporary disinfection plan. CCC is in the process of developing a detailed project schedule and Maintenance of Plant Operations Plan, which should answer many of EGLE’s questions. A UV system shutdown was performed on July 23rd to allow CCC to perform additional data gathering of measurements, layouts, and pre-construction photos. During the shutdown, it was discovered that the bypass chamber effluent gate and control chamber gate are unable to close. At least one of these gates will need to be removed and replaced to allow for UV system isolation for construction activities.

DUWA is in receipt of its first grant reimbursement from EGLE in the amount of about $635k for UV project expenses incurred to date. Another reimbursement request will be drafted as additional project invoices are accumulated over the coming months.

Attorney Kerry Morgan (Riverview’s attorney) asked if the Biosolids Dryer Project will have an impact on the UV project or the UV system operation. System Manager Tercala responded that these are two separate systems in that the biosolids dryers process the solids stream of waste and the UV system processes the liquid stream of the wastewater. Jason Tapp, of Veolia, added that although the systems are separate, the efficacy of the UV system could be impacted if there is a buildup or backlog of sludge in the sludge storage tanks. If there is a high concentration of sludge in the sludge storage tanks, the effluent wastewater could become turbid, or cloudy, with solids particles thereby reducing the efficacy and efficiency of the UV system as it would be more difficult for the UV rays to penetrate the water and inhibit the bacteria.

 c. Biosolids Dryer Facility Project
Jason Nash (Veolia CPM) provided an update on the Biosolids Dryer Facility project to the Board (Attachment 9). On July 6th, the North Dryer was shut down due to a failure of the cake pump motors, which were recently replaced with new 7.5 horsepower (hp) motors. The failures were due to the fan falling off the backside of the motor, which was caused by a manufacturer defect, not as a result of improper installation. The North Dryer then remained off for most of July. Between July 7th and 11th, there was an issue with the centrifuge electrical components which required the South Dryer to be shut down for a couple days. The week of July 15th was a planned system shutdown week to allow for installation of the new tungsten carbide rotors and urethane stators on all four cake pumps. The new rotors and stators are expected to have a longer life expectancy than the previous rotor and stator materials, but it is unclear how much longer of a life expectancy they will have. On July 22nd, both dryers were restarted. On July 31st, bucket tests were performed to evaluate the throughput capacities of the dryers. The bucket tests showed that the cake and dosing pumps on the North Dryer could meet 100% design capacity. Four of the dosing pumps on the South Dryer could meet 100% of their design capacity, but the other four dosing pumps could not as they still need to be rebuilt with the new rotors and stators as not enough parts were available at the time to perform the rotor and stator replacements on all dosing pumps.

The crusher is currently offline and being bypassed because it was undersized which caused clogging. Without the use of the crusher, it takes about 18 hours to fill a single trailer with dried solids. On several occasions, the dryers had to be shutdown in the evening once the trailer was full as there were no additional trailers available. The dryers remained offline until the next morning when another trailer arrived onsite. The beneficial reuse facility in Canada currently provides an additional trailer on Fridays to maintain dryer operation through the weekend, but they are reluctant to provide more trailers during the week due to the inconsistent operation of the dryers. The redesign of the crusher is currently in progress, and the redesign is expected to be released to the manufacturer by the end of this week for fabrication, which is anticipated to take about 10 weeks. Once the crusher is replaced, it should then take longer to fill each trailer which will help increase dryer runtime, and the volume of solids hauled per truckload should increase from 25-27 tons to about 35 tons per truckload.

On August 5th, it was discovered that the fire suppression control panel is no longer communicating with the company that monitors its functionality. This control panel was under warranty by Walsh, but the warranty has recently expired. Without the control panel, the fire suppression system inside the dryers will not automatically activate in the event of a fire in the dryers. Since the fire suppression system will no longer automatically operate, the dryers were shut down out of caution, and currently remain offline as the problem has not yet been resolved. Veolia OM is currently working with the control panel manufacturer to schedule a technician to come onsite to investigate the issue as this is beyond Veolia OM’s electrician’s capabilities. There was an issue with this same control panel that occurred about nine months ago, and it took about one month to resolve due to equipment lead times. Walsh’s two-year warranty on their equipment expired on July 15th, and the fire suppression control panel issue occurred in early August. However, since there was an issue with the control panel nine months ago that required replacement of parts, Veolia CPM will seek to obtain a 1-year warranty on the control panel from the date of the previous issue nine months ago.

The Joint Technical Committee (JTC) is currently focusing on analyzing DUWA’s grit content. Stantec is working with an analytical company to develop a proposal that involves sampling of the solids at the DWTF and performing a grit content analysis. The results of the grit analysis will then be compared to the grit content at other facilities in France that also utilize progressive cavity pumps in order to compare the pumps’ longevity considering grit content. No additional JTC meetings will be held until the grit analysis results are received. The project team continues to meet every Monday and Friday to discuss daily operations, and additional coordination via email is performed between meetings.

It was previously mentioned that a wastewater treatment facility in Texas was experiencing similar wear issues on their pumps. It was later determined that their process involves digestion, which DUWA does not utilize, and their pump wear issues were related to the trash received at the plant rather than grit content, so no further exploration of this facility’s issues will be warranted. The additional pump rotors and stators that were approved for purchase at last month’s Board meeting have been ordered. The electrical plugs that were approved for purchase at last month’s Board meeting to facilitate pump repairs and reduce pump downtime have been received at the DWTF and installation of these plugs will soon be scheduled.

The dryers have been running about 52% of the time since January 2024, which is a significant increase compared to the dryer runtimes in 2023. However, the dryers were offline for about two weeks in July due to the pump and centrifuge issues as well as the scheduled replacement of the dosing pump components.

Mayor Joseph Kuspa (Southgate) asked if the fan damaged the motor when it fell off and how long it took to repair. Jason Nash responded that the fan did not damage the motor from the fall, but without the fan, the motor overheated. The motor was covered under warranty by the pump manufacturer, and a replacement motor was received and installed the following week. Kruger also ordered another spare motor for the shelf.

Chairperson McLeod (Allen Park) requested that an addendum to the monthly biosolids update be provided that includes a description of the fire suppression control panel issues. Jason Nash confirmed that this would be provided. Mayor Joseph Kuspa (Southgate) asked if the fire suppression control panel is still under warranty. Jason Nash responded that Walsh’s warranty on the control panel expired on July 15th; however, since this control panel was replaced only nine months ago due to another issue, Veolia CPM will explore whether it can be replaced again under warranty. This will depend on what the issue is with the control panel, which is not yet known. Mayor Tim Woolley (Taylor) asked who monitors the fire suppression system control panel. Jason Nash responded that an external firm continuously monitors the control panel to verify that it is operational. If the external firm does not receive communication from the control panel, then they call the DWTF to inquire whether the control panel is operational. Jason Nash added that the fire suppression system within the dryers can be operated manually, but there are no cameras inside the dryers to monitor them. If a staff member were to witness a fire through one of the hatches on the dryers, it would take over a minute to get to the control panel to manually activate the fire suppression system, which is not efficient nor safe. Jason Tapp added that Veolia OM relies on the fire suppression company to call the DWTF notifying them of a fire. If an operator or supervisor cannot be reached when the fire suppression company calls the DWTF, then they automatically call 911.

Jeff Dobek (Riverview) asked how much the control panel repair will cost. Jason Nash responded that he does not have pricing for the control panel. Jeff Dobek (Riverview) suggested that once a cost is obtained, purchasing spare parts for the control panel should be considered to prevent future dryer shutdowns related to control panel issues. Jason Nash responded that spare control panel equipment is not typically purchased because control panels should last about 20 years. Roberto Scappaticci (Romulus) asked whether DUWA accepted Walsh’s equipment at contract closeout considering the performance of the equipment downstream of the dryers could not be fully proven as Kruger’s work with the dryers was not yet complete. Attorney Fausone responded that he would review the fire suppression control panel warranty and Walsh’s contract closeout documents to provide a response.

 

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

a. Biosolids Dryer Project: Extension of Jim Taylor Contract
Jim Taylor has been providing professional consulting services to DUWA since May 2023 in support of the Biosolids Dryer Project. He previously assisted with contract closeout negotiation efforts with Walsh, and he continues to support DUWA as a member of the Joint Technical Committee (JTC), which was recently formed in May 2024. The JTC aims to maximize the production of Class A biosolids by evaluating the equipment and operation of the entire Dryer process and developing system improvement recommendations for consideration by DUWA.

Jim Taylor’s efforts through June 30, 2024 have nearly totaled his contract’s current not-to-exceed fee of $11,600. Additional time and effort are needed for his continued participation in the JTC, so it is requested to increase his contract’s not-to-exceed fee from $11,600 to $15,200 to accommodate his continued efforts (Attachment 10). His monthly burn rate is about $1,200/month. The added $3,600 to his contract will provide for another three months of support at his current burn rate, which would accommodate his efforts at least through September 2024. His hourly rate of $120/hour will remain unchanged.

Mayor Joseph Kuspa (Southgate) asked if Jim Taylor’s contract could be revised to only include an hourly fee with no contract limit such that future requests for contract fee increases are not needed. System Manager Tercala responded that this request contemplated a contract fee increase to accommodate Jim Taylor’s efforts through September 2024. By the end of September 2024, and after the Special Board meeting, it is expected that there will be a plan in place as it relates to legal issues associated with the Biosolids Dryer Project, and Jim Taylor’s anticipated future support of the project will be better known at that time. Mayor Joseph Kuspa (Southgate) suggested that if a contract extension is requested for efforts beyond September 2024, then it should contemplate the removal of a contract limit.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Greg Mayhew (Wyandotte) to approve the increase in the not-to-exceed fee of Jim Taylor’s Professional Services Engagement contract to $15,200. The fee will be paid from DUWA’s Engineering Services line item of the budget.

b. Dykema Professional Services Payment for Bonding Efforts
While DUWA was applying for various grant and loan opportunities to fund the UV Disinfection Replacement Project, DUWA also initiated correspondence with PFM (DUWA’s Financial Advisor) and Dykema (DUWA’s Bond Counsel) to begin efforts to secure a municipal bond to fund the UV project, if deemed necessary. The initial efforts of the bonding process included adopting a Resolution to authorize publication of the Notice of Intent, which was adopted by the Board in November 2023 and was published in the Detroit Legal News shortly thereafter. The Board then authorized J.P. Morgan as the underwriter in January 2024, and then adopted the Bond Series Ordinance authorizing the issuance and sale of bonds in March 2024.

In the meantime, and thanks to Chairperson McLeod’s (Allen Park) advocacy efforts, DUWA was invited to submit an application for a Special Request Grant through Senator Geiss’ office. DUWA was later notified that it had been awarded $10M in grant monies through an earmark in the State’s budget. The official Grant Agreement was executed in March 2024. Given that the selected contractor’s bid value was lower than expected and less than the $10M grant value, it was determined that bonding would no longer be needed to fund the UV project.

Although bonding is no longer being pursued, PFM and Dykema contributed significant time and effort to advance upon the preliminary stages of the bonding process. Their efforts would have been reimbursed from the proceeds of the revenue bonds, but instead PFM and Dykema were requested to prepare invoices for their spent efforts related to the bonding process for payment by DUWA. Dykema’s invoice for $18,889.35 includes their bond counsel services associated with the initial efforts of the bonding process including preparation of the Notice of Intent Resolution, preparation of the Bond Authorizing Resolution and Series Ordinance, as well as participation in meetings and correspondence with DUWA and other financial personnel as it related to the bonding process (Attachment 11). Dykema’s invoice is included in this month’s invoice register, pending Board approval. PFM’s invoice is expected to be received in the coming weeks and payment of their invoice will be requested once received.

Motion by Mayor Joseph Kuspa (Southgate) and supported by Roberto Scappaticci (Romulus) to approve payment of Dykema’s invoice for $18,889.35 for their bond counsel services associated with the initial efforts of the bonding process for the UV project. This cost will be paid from DUWA’s Bond Issuance Fees line item of the budget.

c. Labware Dishwasher Replacement
The lab dishwasher at the DWTF used to clean and sanitize the equipment in the laboratory has failed and is beyond repair. The new dishwasher needs to have a deionized water flush, sterilization, and drying to ensure the lab equipment is properly cleaned such that it will not skew lab results. Purchase of a new dishwasher will also eliminate the time needed to manually clean the equipment.

Veolia solicited quotes from multiple vendors for a dishwasher replacement. Of the quotes received, Fisher Scientific provided the lowest quote of $17,023.88, inclusive of tax and shipping (Attachment 12). Veolia will not apply their 10% markup to this cost. The equipment will also carry a two-year warranty from the date of installation. The Technical Committee reviewed the request to purchase a new dishwasher for a higher price of $18,466 and recommended it for approval. Since then, a lower quote has been received.

Greg Mayhew (Wyandotte) asked if this is the same dishwasher model that was presented to the Technical Committee at their last meeting that had a higher price. Jason Tapp confirmed that the dishwasher requested today is the same dishwasher that was presented to the Technical Committee, but Veolia was since able to receive a lower price from an alternative supplier. He added that the dishwasher previously installed at the DWTF did not have a deionized water flush, which the new dishwasher will have, and which is necessary to clean the probes.

Roberto Scappaticci (Romulus) asked if there is additional warranty that can be purchased considering this is a heavily used machine. Jason Tapp responded that he will explore after-market warranty options, and if he finds one, Veolia will pay for the added warranty.

Motion by Mayor Bill Bazzi (Dearborn Heights) and supported by Roberto Scappaticci (Romulus) to authorize Veolia to purchase a lab dishwasher replacement for a not-to-exceed cost of $17,023.88. Costs will be paid from DUWA’s Small Capital budget line item.

 

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

a. Plant Performance
Travis Tuma, of Veolia, stated that no odor complaints have been received in recent weeks. Additionally, there is currently a very low solids inventory in the sludge storage tanks at the DWTF, which is ideal for plant operations. The DWTF is in very good shape as it is experiencing its lowest solids levels in the last eight months. The sludge inventory is healthy and at the optimal level for plant operations.

b. June 2024 MOR
The June 2024 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting packet (Attachment 13). Highlights from the summary and other updates included the following:

• • The DWTF remained in compliance in the month of June and there were no violations.
  • In June, the DWTF treated about 1.2B gallons, and the average daily flow was about 40 MGD. No bypass events occurred in June, and there has still only been one bypass event this year (which occurred in January).
  • One maintenance position remains open, and there are currently three interviews scheduled for this position.
  • Veolia continues to dose a small amount of ferric chloride for odor control. Peroxide was only dosed a couple of times this month when flows into the DWTF were low.
  • The hydrogen peroxide chemical supplier is in the process of installing the peroxide dosing cleaning system for the condensing towers associated with the biosolids dryers to reduce the rate of biofilm growth on the media within the towers. The peroxide dosing system will clean the media within the condensing towers while the towers are still in operation such that dryer downtime is reduced. Without the use of the peroxide dosing system, the media must be removed and cleaned about once per month which requires the dryers to be shut down. Installation of the peroxide dosing system is expected to be complete the last week of August and training of Veolia OM staff to operate the peroxide dosing system is scheduled to take place on August 26th and 27th.
    • The condensing towers were recently cleaned when the dryers were shut down for planned maintenance. During this time, the media within the condensing towers was removed, cleaned via an acid bath, and reinstalled. About 25% of the media was replaced due to damage. A lift had to be rented to pull the media from the towers. Cleaning of the media was a large job that took the entire week to complete.
  • Veolia OM staff completed a large maintenance job involving inspection of the tunnel pumps. The tunnel pumps are serviced annually as they are submersible pumps and are used to pump the wet weather flow from the tunnel to the DWTF headworks. A crane was rented to pull each of the four tunnel pumps up from 60 feet below grade. All four of the tunnel pumps were cleaned and inspected within one day. The inspections showed that the integrity of the pumps looked good as the seals, wearings, and impellers were all in good condition and there were no moisture issues under the seals.
  • A lot of preventative maintenance work was completed on the primary clarifier tanks.
  • In the Solids Handling Building, the air conditioning units in the electrical room were replaced after they overheated as June was a hot month. Air conditioning is critical in the electrical rooms where the variable frequency drives (VFD) operate as they generate a lot of heat. Some VFD panels even have their own air conditioning unit for cooling.
  • Routine maintenance was performed throughout DUWA’s collection system, which included checking and replacing the batteries on the flow meters.
  • Veolia’s Health and Safety Manager tracks the number of confined space entries performed each month. In June, 15 confined space entries were performed by the collection system team which sometimes involved blocking road traffic. All entries were performed successfully without injury.
  • Veolia received 235 Miss Dig tickets in June, of which 19 were emergency requiring a response within two hours. The number of tickets received appears to be slowing down as the end of construction season nears.

Greg Mayhew (Wyandotte) asked for clarification on the flooding that recently occurred in Wyandotte near the Southgate-Wyandotte Relief Drains Drainage District (SWRDDD) Pump Station #5 which Veolia operates. Jason Tapp stated that there has been some recent construction activity at this pump station that necessitated work on an access hatch. This hatch was supposed to be sealed by the contractor at the end of each day in case there was a need to turn on the pump station to pump flow to the Detroit River. However, the hatch was not properly sealed and was instead covered with plywood. During the large rain event that occurred in early August, the SWRDDD Pump Station #5 needed to operate to discharge flow to the Detroit River. However, since the hatch was not properly sealed, the pumped flow reached the ground surface breaching the plywood cover and flooding the road instead of being discharged to the river. The flooded water was pumped back to the DWTF for treatment, and no floodwaters reached receiving streams. Veolia notified EGLE of the occurrence and is working on developing a report documenting the issue. Although the floodwater was disinfected before it was pumped, this occurrence was still considered a Sanitary Sewer Overflow. It should be noted that this issue is associated solely with the SWRDDD and not DUWA. DUWA is not in violation.

c. Chemical & Sludge Price Updates
Jason Tapp presented the summary of commodity unit price changes to the Board (Attachment 14). There have been no recent significant increases on chemical unit pricing and no major changes to unit prices are expected. Savings on hauling costs are beginning to be realized with the new agreement with the landfill in Michigan to accept DUWA’s dewatered biosolids as this landfill is closer to the DWTF than the other out-of-state landfills that DUWA was previously utilizing. The Michigan landfill has no limitations on daily sludge volumes, however, it is still desired to maximize dryer production of dried solids as the dried solids are sent to the beneficial reuse facility in Canada.

June was also the first month that no surcharge fee was applied from the beneficial reuse facility in Canada. A surcharge fee is applied when fewer than 20 loads of dried solids are sent to the Canadian facility each month. In June, about 23 or 24 loads were sent to the Canadian facility. Currently, it takes about 18 hours to fill one trailer with dried solids without the use of the crusher. Often times, the dryers would fill the trailers so fast that no additional trailers were available, so the dryers had to be shut down until the next day when another trailer would arrive onsite. Once the crusher is replaced, the issue with the lack of trailers should be resolved as the crusher should provide a longer fill time of the trailers.

Jason Tapp presented the sludge hauling volume tracker to the Board (Attachment 15). In June, about 53% of the solids produced at the DWTF were dried and hauled to Canada for beneficial reuse. This is the highest percentage of dried solids production experienced since the dryers have been online. The dryers also ran more hours in the last couple months than they have since they were brought online. The dried solids production values in early 2023 are skewed because there was no available landfill outlet at that time so solids could only be put through the dryers and solids were backing up at the DWTF.

If the dryers remain offline for the next month while the fire suppression control panel issue gets resolved, additional loads of dewatered solids can still be sent to the landfill for disposal so there is no concern with compliance or with solids backing up at the DWTF. While not ideal, the sludge storage tanks have the ability to store about a week’s worth of sludge. In June, a high volume of solids was removed from the DWTF so there is currently a very low solids inventory in the sludge storage tanks, which is ideal for plant operations. The DWTF is in very good shape as it is experiencing its lowest solids levels in the last eight months. The sludge inventory is healthy and at the optimal level for plant operations.

d. Existing Disinfection System Remaining Life Update
Jason Tapp stated that the UV system is currently running well and is achieving the required fecal disinfection. There has been minimal maintenance needed on the bulbs and ballasts, and the OM team continues to perform routine cleaning of the system. Veolia continues to work with Trojan to replenish the inventory of OEM spare parts, as needed. Spare parts are inventoried on a monthly basis to identify any parts that need to be replenished for the shelf. There are currently enough spare bulbs to replace all bulbs on a single UV bank, however another 50 bulbs will be ordered. There are also currently enough ballasts to perform emergency ballast replacements when needed. Another dozen of quartz sleeves will be ordered as well.  

Veolia is also continuing to search for opportunities to purchase spare parts from auction sites or other facilities that are decommissioning their existing UV systems in preparation for installation of their new UV systems. Veolia OM estimates that they currently have enough spare parts to maintain operation of the existing UV system until the new UV system is commissioned.

 

8. TREASURER’S REPORT

a. Quarterly Financial Statement – 2024 Q2
Accountant Doug Drysdale (DNS Financial Services/Southgate) presented the Quarterly Financial Statement for 2024 Q2 (Attachment 16). The balance sheet compares DUWA’s balances as of June 30, 2024 to those at the beginning of the year. DUWA has about $500k less in cash than at the beginning of the year. DUWA’s Accounts Receivables has about $1M more than at the beginning of the year as some communities are behind on their self-reporting worksheets and invoices in the summer months tend to be higher than invoices in the winter months. The amounts in Fixed Assets and Accumulated Depreciation will be updated at the end of the year during the audit process. Insurance premiums are paid at the beginning of the year, but the total cost paid is spread out over the course of the year on the quarterly reports. Accounts Payable has about $700k less than at the beginning of the year largely because there have been very few capital expenditures since the beginning of the year.  The short and long-term liabilities account for principal and interest payments made on DUWA’s bonds. Additional bond payments will be due on October 1st. DUWA’s net revenue is a surplus of about $1.5M which is applied to the fund balance.

The Revenue and Expenditures report compares the 2024 Q2 balance to the 2023 Q2 balance. The targeted percentage of budget used through Q2 is 50%. Under Other Revenues, the line item for SRF Bonds – Project Reimbursements is no longer applicable as this line item was a placeholder for DUWA’s anticipated bonds that would have been issued for the UV project. As bonding is no longer being pursued, this line item will be removed as part of a future budget amendment. The line item for State Grants – Infrastructure accounts for the $10M earmark that DUWA was awarded from the State for the UV project. About $635k in grant reimbursements have been received to date.

Operating Revenue is about at 50% of the budget used as sewage disposal revenues are at about 57% of the budget and excess flow revenues are at about 42% of the budget, which evens out to about 50% of the budget overall. Revenues from industrial surcharges are $22k above what was budgeted for this year. Revenue earned from interest is at about 55% of the budget, and high interest rates continue to earn revenue for DUWA. Expenditures related to Debt Service are at about 63% of the budget and include the principal payments made on April 1st for DUWA’s bonds. Additional principal and interest payments in lesser amounts will be made in October. Administration expenses are at about 37% of the budget as there have been fewer efforts for engineering services to date. The audit fees and software maintenance expenses are over the 50% targeted budget because these fees are mostly paid in the first half of the year. Plant Operations is at about 46% of the budget. Sludge hauling expenses are at about 53% of the budget. The use of hydrogen peroxide was not contemplated during the budget development, so future peroxide expenses will need to be budgeted for as part of a pending budget amendment. About $321k has been spent in capital expenditures compared to the $20.5M budget, but this budget included the original cost estimate for the UV project which was much higher than the bids received to perform the work. DUWA’s net revenue is a surplus of about $1.5M

Chairperson McLeod (Allen Park) noted that while she helped advocate for DUWA to receive grant monies for the UV project, the receipt of the $10M grant was a team effort with the help of OHM and the other DUWA professionals. Roberto Scappaticci (Romulus) asked if the interest for the WIFIA loan received for the Biosolids Dryer Project has a fixed or fluctuating interest rate. Accountant Doug Drysdale (DNS Financial Services/Southgate) responded that the interest rate is fixed at 1.73%.

b. Community Self-Reporting Status Log
Accountant Doug Drysdale (DNS Financial Services/Southgate) presented the Community Self-Reporting Status Log (Attachment 17). Most communities are up to date on their self-reporting worksheets. Accountant Doug Drysdale (DNS Financial Services/Southgate) worked with Allen Park on their self-reporting worksheet and expects to receive their May 2024 worksheet within the next few days. He also recently received Ecorse’s March through May 2024 worksheets as their controller was out of the office for an extended period of time, and next month’s self-reporting status log will be updated accordingly. Accountant Doug Drysdale (DNS Financial Services/Southgate) is still working with Dearborn Heights’ new controller to get them caught up on their worksheets, which he expects to receive within the next month.

c. Aging AR
Accountant Doug Drysdale (DNS Financial Services/Southgate) presented the Aging Accounts Receivable report (Attachment 18). He stated that the total amount in the Accounts Receivable is approximately $1.5M of which 92% is current less than 30 days delinquent. No communities have outstanding payments over 30 days delinquent. The City of Taylor previously had three outstanding invoices because they were sent to their Department of Public Works and were never forwarded to the appropriate financial personnel for payment, but Treasurer Jason Couture (Taylor) provided Accountant Doug Drysdale (DNS Financial Services/Southgate) with payment of these invoices this week. There are some larger outstanding payments from industrial users related to their annual surcharge fees that are over 120 days delinquent. Accountant Doug Drysdale (DNS Financial Services/Southgate) continues to work with these industries to get them caught up on their payments, but it can be challenging to connect with the appropriate financial personnel with these corporate customers. Late fees will be assessed to those industries with outstanding payments over 60 days delinquent as of July 1, 2024.

d. Pending Invoices
Accountant Doug Drysdale (DNS Financial Services/Southgate) presented the invoice register for a request for payment (Attachment 19). The invoice register included 35 invoices due for a total of $1,970,183.44. There was a short turnaround time for invoice submittals this month so the invoice register has fewer invoices than normal. The largest invoices included those to Veolia for operation and maintenance services, unit cost reconciliations and credits on inaccurate pricing for chemicals in 2023, and capital projects and Wyandotte Municipal Services for utility services.

Motion by Mayor Bill Bazzi (Dearborn Heights) 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
Jeff Dobek (Riverview) commented that he recently read an article about the City of Warren’s plan to install a sludge incinerator at their wastewater treatment facility. The incineration of the sludge would also address concerns of PFAS contained within the sludge. He added that DUWA could consider incineration of sludge if space allows at the DWTF and if the dryers do not perform as expected. Chairperson McLeod (Allen Park) noted that the use of incinerators have come and gone over the years and that incinerators can also present compliance challenges with air pollution and air quality.

 

11. NEXT BOARD MEETING DATE: THURSDAY | SEPTEMBER 12, 2024 (9:00AM; IN-PERSON)
Chairperson McLeod (Allen Park) reminded the Board that the next meeting would take place on Thursday, September 12, 2024 at 9:00 AM in-person at Taylor City Hall. She noted that she will be absent for the next Board meeting, but Allen Park’s alternate Board Commissioner, Gerald Barr, will attend in her place.

She also reminded the Board that a Special Board meeting is scheduled to take place on Thursday, September 19, 2024 at 10:00 AM in-person at the Romulus Athletic Center in Romulus. She requested that the Board Commissioners encourage their alternate Commissioners and elected officials to attend.

 

12. ADJOURNMENT
There being no other business, Chairperson McLeod (Allen Park) announced that a motion to adjourn would be in order. Motion by Jeff Dobek (Riverview) and supported by Roberto Scappaticci (Romulus) to adjourn the meeting. The motion passed unanimously at 10:16 AM.

 

Meeting Minutes Prepared by:
Mackenzie Chamberlain  |  OHM Advisors, DUWA System Manager

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

Attachments:

1. Meeting Agenda
2. July 11, 2024 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone & Grysko)
4. Proposed Changes to Articles of Incorporation (by Fausone & Grysko)
5. Request to Set Special Meeting with Closed Session (by Fausone & Grysko)
6. Request for Legal Services Contract Renewal (by Fausone & Grysko)
7. System Manager Report for August 2024 (by OHM Advisors)
8. UV Disinfection Replacement Project Update (by OHM Advisors)
9. Biosolids Dryer Facility Project July 2024 Monthly Progress Summary (by Veolia CPM)
10. Request for Extension of James T. Taylor Engagement for Dryer Project Support
11. Dykema Invoice for Bond Counsel Services related to the UV Project
12. Request to Purchase Labware Dishwasher
13. Monthly Operating Report for June 2024 (by Veolia OM)
14. DWTF Unit Price Changes Summary (by Veolia OM)
15. Sludge Volume Tracker (by Veolia OM)
16. Quarterly Financial Statement – 2024Q2 (by Doug Drysdale)
17. Community Self-Reporting Status Log (by Doug Drysdale)
18. Aged Accounts Receivable Report, dated July 30, 2024 (by Doug Drysdale)
19. Invoice Register, dated August 2, 2024 (by Doug Drysdale)