DOWNRIVER UTILITY WASTEWATER AUTHORITY
September 12, 2024 Meeting Minutes
CITY OF TAYLOR COUNCIL CHAMBERS

1. ROLL CALL AND INTRODUCTIONS
Vice Chairperson Mayor Joseph Kuspa (Southgate) 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 9 communities: Brownstown Township, Ecorse, River Rouge, Riverview, 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), David Hall (Ecorse), Mayor Joseph Kuspa (Southgate), Roberto Scappaticci (Romulus), Jeff Dobek (Riverview), Lou Arapakis (River Rouge), Mayor Tim Woolley (Taylor), Kevin Lawrence (Van Buren Township), and Greg Mayhew (Wyandotte).

b. Other Meeting Attendees
Board meeting attendees present in the audience at the time of roll call introduced themselves as follows: Ed Smith (Brownstown Township Supervisor), Ralph Richard (City of Taylor), Jason Couture (DUWA Treasurer), Steve Hitchcock (Romulus attorney), Souheil Sabak (C.E. Raines), Rumzei Abdallah (Plante Moran), Jim Fausone (Fausone & Grysko; DUWA Legal), Doug Drysdale (DNS Financial Services, DUWA Accountant, Southgate Finance Director & Assistant City Manager), Dan Marsh (Southgate City Administrator), Alyssa Gunsoren (Riverview attorney), Jason Nash (Veolia CPM for Dryer project), Jason Tapp (Veolia OM), Travis Tuma (Veolia OM), Lambrina Tercala (OHM Advisors, DUWA System Manager), Aliyah Gilbert (OHM Advisors, DUWA System Manager).

 

2. APPROVAL OF AGENDA
Copies of the Agenda were made available prior to the meeting (Attachment 1). Motion by Roberto Scappaticci (Romulus) and supported by Mayor Tim Woolley (Taylor) to approve the Agenda. The motion passed unanimously by all attending members.

 

3. APPROVAL OF MINUTES FROM AUGUST 8, 2024 BOARD MEETING
Copies of the meeting minutes from the August 8, 2024 Board meeting were included in the pre-meeting Board packet (Attachment 2). Motion by Jeff Dobek (Riverview) and supported by Roberto Scappaticci (Romulus) to approve the minutes. The motion passed unanimously by all attending members.

 

4. LEGAL UPDATE
Attorney Jim Fausone, of Fausone & 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 assisted with the Request for Proposals for a new System Manager and the System Manager Transition Agreement.

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 local Councils/Boards of each member community must adopt the Resolution approving the revisions to the AOI in order for the revised AOI to take effect. Once the revised AOI are approved by the member communities, then DUWA can consider the same changes to the Bylaws, as applicable. The most significant change to the AOI besides the change in fiscal year is the loss of vote if a community fails to pay a financial obligation owed to DUWA for a period of 90 days (default) and if the default exists for an additional 90 days.

Mayor Tim Woolley (Taylor) asked if a summary of the revisions can be sent to the Board Commissioners so that their local Councils/Boards do not have to read through the entire document when considering approval of the changes. Attorney Fausone confirmed that the System Manager would provide a summary of the proposed changes to the AOI to the Board Commissioners. Mayor Joseph Kuspa (Southgate) suggested adding text to the first sentence on page 4 of the AOI such that it reads, “Annually, at its January meeting or as soon as practical, the Commission shall…” just in case the Board does not meet in January and to make sure the Board would not be in default of the AOI.

Motion by Roberto Scappaticci (Romulus) and supported by Greg Mayhew (Wyandotte) to recommend to the 13 community members of DUWA to adopt the Second Amended Articles of Incorporation, inclusive of the proposed additional text on page 4, to clarify certain matters and otherwise for the benefit of the Authority. The motion passed unanimously by all attending members.

 

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

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

• • OHM developed a RFP for a new System Manager as OHM’s contract expires in September and they do not seek to renew at this time due to availability of key personnel. Two proposals were received in response to the RFP and interviews will be held with each firm next week.
  • Other Professional Services contracts expiring later this year include Plante Moran and DNS Financial Services, both of which will seek a contract renewal. The Finance Committee did not express concern with the renewal of contracts for these two firms.
  • The three as-needed engineering contracts are up for renewal and will be presented later in the meeting.
  • OHM and Veolia OM developed a Residuals Management Plan (RMP) and submitted it to EGLE for review. An EGLE-approved RMP will allow DUWA to land apply Class A biosolids. Land application of dried solids could be an alternative biosolids disposal outlet option besides landfilling or hauling to the beneficial reuse facility.
  • Due to the inconsistent operation of the dryers, DUWA has been selling off a considerable amount of unused natural gas each month. OHM has been working with Constellation and MEA to assess the opportunity to sell off future months’ nominated gas volumes during select months when market prices are higher.
  • OHM is drafting 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 may also include the new PFAS local limits, depending on when they are finalized. The revised SUO will be provided to the Technical Committee later this month, then will be brought to the Board for review. The revised SUO must take effect by December 31, 2024.

i. Authorization of OHM Advisors’ System Manager Transition Agreement
OHM Advisors currently serves as DUWA’s System Manager per the System Manager Agreement executed on September 9, 2021. The System Manager Agreement contract term expires on September 9, 2024, and OHM Advisors does not seek contract renewal. A Request for Proposals for a new System Manager was posted for public bid on August 8, 2024 and proposals were due on September 5, 2024. Proposals are currently under review by DUWA’s System Manager Selection Committee. The start date for the new System Manager is anticipated to be October 28, 2024, pending Board approval of the recommended firm.

Given that System Manager services will be necessary between the time the current System Manager Agreement expires and the start date of the new System Manager, OHM Advisors developed a System Manager Transition Agreement that recognizes the following activities proposed to be undertaken by OHM Advisors after the current System Manager Agreement expires:

• • • • Perform continued, routine System Manager services from the time period of September 9, 2024 through October 27, 2024.
      • Assist the new System Manager in their transition into the role for a period of six (6) months, with an assumed start date of October 28, 2024.
      • Attend and participate in meetings of DUWA or its professionals to provide assistance on issues that may arise as related to the biosolids dryer project for the length of this Agreement.

The proposed System Manager Transition Agreement has a contract term of 36 continuous months, which would provide for OHM’s assistance with continued support of the Biosolids Dryer Project until September 9, 2027, as needed (Attachment 6).

Jeff Dobek (Riverview) asked if there is an anticipated budgetary cost for the continued System Manager services during the transitional period considering that this effort was not planned nor budgeted. System Manager Tercala responded that the Agreement identifies key personnel and their hourly rates, and added that an anticipated budgetary cost can be provided based on an estimate of the hours to be spent during the transitional period. Attorney Fausone added that the System Manager will also continue to assist with matters related to the Biosolids Dryer Project, and their involvement and historical knowledge of the project will be critical to the legal team.

Motion by Roberto Scappaticci (Romulus) and supported by Jeff Dobek (Riverview) to authorize the Chair or Vice Chair to execute OHM Advisors’ System Manager Transition Agreement. A roll call vote was taken, and the motion passed with 73.7% of the vote (unanimous vote by all attending members).

b. UV Disinfection Replacement Project Update
System Manager Tercala provided an update on the UV Disinfection Replacement Project to the Board (Attachment 7). On September 5th, Black & Veatch, CCC, Veolia, OHM, and EGLE met to review construction sequencing options for Maintenance of Plant Operations. Additional discussions between CCC and Black & Veatch will be required to develop a plan that can be recommended to EGLE for approval.

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 in the amount of about $100k was submitted to EGLE on September 11th and is pending EGLE’s review and approval.

i. Authorization of CCC’s Change Order 1 – No Fee, Contract Time Adjustment Only

CCC, the General Contractor for the UV Disinfection Replacement Project, has begun initial project efforts including developing a project schedule and Maintenance of Plant Operations plan as well as gathering additional data and measurements from a recent onsite visit. CCC has also submitted a request for a no fee Change Order to DUWA to extend the contract times by 25 calendar days based on the date that the Notice to Proceed was issued by DUWA (Attachment 8).

Bids were opened on March 27, 2024, the Notice of Award was issued to CCC on May 14, 2024, and the Notice to Proceed was issued to CCC on June 18, 2024. The Notice to Proceed was issued 25 days later than planned because several revisions to the Notice of Award documents provided by CCC, namely the Certificate of Insurance, were necessary, which delayed the issuance of the Notice to Proceed. The proposed adjustments to the contract times are as follows:

• • • Substantial Completion Date
      • Original: March 1, 2026
      • Proposed: March 26, 2026
    • Final Completion Date
      • Original: April 30, 2026
      • Proposed: May 25, 2026

The proposed final completion date of May 25, 2026 will still be ahead of the September 15, 2026 project completion deadline required by the UV Grant Agreement. This Change Order request was reviewed by Black & Veatch and the Technical Committee and was recommended for approval.

Motion by Mayor Tim Woolley (Taylor) and supported by Lou Arapakis (River Rouge) to approve CCC’s Change Order #1 to extend the UV project’s contract times by 25 calendar days. The motion passed unanimously by all attending members.

 c. Biosolids Dryer Facility Project
Jason Nash (Veolia CPM) provided an update on the Biosolids Dryer Facility project to the Board (Attachment 9). On August 6th, the dryers were shut down and the control panel was repaired. The dryers were restarted on August 15th. The dryers were shutdown again on August 27th as scheduled to allow for the hydrogen peroxide supplier to install the hydrogen peroxide dosing system for the condensing towers, which is working well so far. Peroxide is now being dosed on an as-needed basis and a continuous drip is dosed to continuously clean the condensing towers. During the shutdown, dryer cleaning was performed. The dust that accumulated on the bottom of the dryers was removed. Industrial hygienists were brought onsite to evaluate the air quality and whether the current personal protective equipment (PPE) requirements are sufficient.

At the July Board meeting, purchase of additional rotors and stators was approved. However, the pump manufacturer quoted the incorrect materials, as was discovered by OHM as the materials were being shipped to the DWTF. The correct materials are expected to ship to the DWTF this week or early next week. Tungsten carbide rotors and urethane stators for the dosing pumps are expected to ship today and should arrive early next week.

The crusher remains offline which results in trailers filling within 18 hours as opposed to 24 hours. One empty trailer is available each day so the dryers have to be shut down for a few hours each day once the available trailer is full and until another empty trailer arrives onsite. The beneficial reuse facility in Canada has offered an opportunity for a new long-term contract with higher fees that would add a third trailer to the site. However, the current dryer run time does not demonstrate the availability to fill a third trailer so this proposal is not being considered at this time. The crusher is expected to be delivered in December and installed in early January, at which time the proposed contract utilizing a third trailer could be reconsidered.

A wastewater treatment plant in France that utilizes biosolids dryers is being considered as a benchmark to DUWA for a grit study. This effort is being lead by Kruger. DUWA’s grit will be compared to the grit at the France wastewater treatment plant. The dosing pumps on the dryers at the France wastewater treatment plant have run times that are three to four times the run times of the dosing pumps on the dryers at the DWTF.

On the dryer system operation pie charts, the primary reason for recent dryer downtime is due to the fire suppression system issue and condensing tower work over the last month. There has also been some downtime associated with PLC and SCADA system issues as well as lack of available trailers.

Jeff Dobek (Riverview) asked if DUWA has considered purchasing its own trailer for storing dried solids. Mayor Joseph Kuspa (Southgate) commented that this would require a financial cost/benefit analysis as well as consideration of insurance requirements. Jason Tapp responded that Veolia explored the option to purchase their own trailer, but the cost/benefit analysis was not in DUWA’s favor. Veolia would also bear the risk and responsibility in the event there was a spill. The beneficial reuse facility in Canada offers a trailer rental over the weekend at a cost of $600 per weekend, which has been beneficial to keep the dryers running throughout the weekend. A trailer may be worth purchasing once the dryers increase their run times and production and operate over 50% of their design capacity. Mayor Tim Woolley (Taylor) suggested revisiting the option to purchase a trailer once the new crusher is installed. Jeff Dobek (Riverview) asked if a macerator is still being considered. Jason Nash responded that a macerator is not currently being considered because it will not impact grit, it will only grind larger items rather than grit.

 

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

a. Thermal Oil Unit Spare Parts and Maintenance Services
Two thermal oil units were installed as part of the Biosolids Dryer Project. The O&M manual recommends that certain spare parts be kept on the shelf, however no spare parts were provided by the manufacturer during the installation and commissioning process of the thermal oil units. If one of the thermal oil units fails and there are no spare parts on the shelf, the dryers would have to be shut down until spare parts could be acquired and installed. Thus, the purchase of the thermal oil unit spare parts is considered critical to maintaining operation of the dryers.

Fulton, the equipment manufacturer, provided a quote to supply the necessary spare parts for $62,818 per thermal oil unit. Veolia reviewed the quote and determined that some of the spare parts were already in stock at the DWTF and others were not needed as some parts could be rebuilt instead of replaced. Veolia also determined that spare parts would only be needed for one thermal oil unit, not both, since the two units are identical. With removal of the redundant and unnecessary parts, the revised quote for the spare parts is $16,946.28 inclusive of tax and shipping and Veolia’s 10% markup (Attachment 10). Additional spare parts will be ordered on an as-needed basis. There is about a one week lead time for the spare parts.

The O&M manual also recommends that preventative maintenance services be performed on the thermal oil units on an annual and semi-annual basis. Maintenance services would include review of the system installation, resealing of the cover dresser plates, inspection of the heater and verification of its performance, and a final check to address any outstanding safety and operational issues. Since the equipment is proprietary to Fulton, only Fulton can perform this work. Fulton provided a quote to perform these maintenance services for a not-to-exceed fee of $20,844.96 inclusive of tax and shipping and Veolia’s 10% markup (Attachment 11). The Technical Committee reviewed the requests to purchase thermal oil unit spare parts and perform maintenance services and recommended them for approval.

Mayor Joseph Kuspa (Southgate) asked if the cost for maintenance services is an annual or semi-annual cost. Travis Tuma, of Veolia OM, responded that the cost for maintenance services is an annual cost and added that Veolia OM has the capacity to perform the semi-annual preventative maintenance services in-house. Roberto Scappaticci (Romulus) asked if sales or use tax applies to the purchase of the spare parts. System Manager Tercala responded that the purchase could be tax-exempt if DUWA purchased the spare parts directly, but Veolia OM is purchasing the spare parts so they are not tax-exempt.

Motion by Greg Mayhew (Wyandotte) and supported by Kevin Lawrence (Van Buren Township) to authorize Veolia OM to purchase the thermal oil unit spare parts from Fulton for a not-to-exceed fee of $16,946.28. The motion passed unanimously by all attending members.

Motion by Jeff Dobek (Riverview) and supported by Greg Mayhew (Wyandotte) to authorize Veolia to contract with Fulton to perform maintenance services on the thermal oil units for a not-to-exceed fee of $20,844.96. The motion passed unanimously by all attending members.

b. Recommendation of Contractor for HVAC Improvements Phase 2
The steam heating systems throughout the DWTF are in need of replacement. In 2019, Veolia’s capital projects experts reviewed the DWTF’s heating needs and proposed replacement of the existing steam heaters with either natural gas or electric heaters as steam systems are inherently high maintenance (in cost and effort). It was also proposed to install new gas-fired hot water heating systems in several of the buildings. Phase 1 of the suggested HVAC improvements involved servicing the two existing steam boilers to restore steam heat to the facilities served by the boilers. Phase 1 work was completed several seasons ago.

It is now proposed to advance on Phase 2 of the HVAC improvements, which involves replacing the existing steam boiler system with a natural gas hot water boiler. The system services three buildings: the Administration building, the UV building, and the former Solids Handling building. Hazen & Sawyer previously completed the design of the HVAC Improvements Phase 2 work in 2022. The design includes installation of a 300 MBH natural gas fired boiler as well as five natural gas unit heaters in the UV Building and two heaters in the former Solids Handling Building at the locations of the existing steam unit heaters. Hazen & Sawyer’s opinion of probable construction cost at that time was $621,000.

Veolia solicited quotes from two companies they felt were the most qualified to perform the work. Purvis and Foster declined the offer to bid due to a lack of staffing availability. Detroit Boiler Company submitted a proposal for $315,500 (Attachment 12). Given that Detroit Boiler Company’s quote was significantly less than Hazen & Sawyer’s cost estimate, Detroit Boiler Company met with Hazen & Sawyer at the DWTF on August 21^st to review the complete scope of the project. Following the site visit, Hazen & Sawyer felt comfortable that Detroit Boiler Company’s quote included the full scope of work involved. Veolia is also working with Detroit Boiler Company to obtain an acknowledgement that they will comply with the WIFIA federal cross-cutter requirements of the Davis-Bacon Act and American Iron and Steel. The Technical Committee reviewed the request to perform the HVAC Improvements Phase 2 work and recommended it for approval.

As Hazen & Sawyer developed the design for this project, they are also in the process of preparing a proposal to provide construction administration and construction engineering (CACE) services for the construction phase of the project. Their CACE proposal is currently in development and will be brought forward to the Board for approval next month.

Roberto Scappaticci (Romulus) requested a breakdown of costs between labor and parts. Jason Tapp, of Veolia, responded that the labor cost is expected to be high for a 10-week project. System Manager Tercala responded that she will work with Veolia OM and Hazen & Sawyer to obtain a breakdown of costs from Detroit Boiler Company. Roberto Scappaticci (Romulus) asked whether this project is urgent to complete. Jason Tapp, of Veolia, responded that since this is an HVAC project, it is critical to complete before the cold winter months. Attorney Fausone suggested that the motion be contingent upon the review of the cost breakdown by the Technical Committee.

Mayor Joseph Kuspa (Southgate) asked why only one quote was received for this work. Jason Tapp, of Veolia, responded that Veolia solicited quotes from multiple companies, but it was difficult to find companies with the capacity to perform such a large project.

Motion by Kevin Lawrence (Van Buren Township) and supported by Roberto Scappaticci (Romulus) to authorize Veolia to contract with Detroit Boiler Company to perform the HVAC Improvements Phase 2 work for a not-to-exceed fee of $315,500 contingent upon their acknowledgement that they will comply with the WIFIA funding requirements.

c. Recommendation of Contractor and Construction Engineering Services for PLC-5 Replacement Project
The DWTF is equipped with numerous Programmable Logic Controllers (PLC-5s) that are used to communicate with the SCADA system to allow for automatic operation of the various treatment equipment components throughout the DWTF. The three PLC-5s located in the Solids Handling Building are in need of replacement because they have reached the end of their useful lives. Additionally, the hardware has been discontinued by the manufacturer and is no longer supported, thus it is very difficult and expensive to acquire spare parts. The three PLC-5s that operate the solids handling equipment (such as the centrifuges and rotary lobe pumps) are extremely critical to plant operations because the solids handling equipment cannot be run manually without the PLC-5s as can some other treatment equipment in other parts of the plant. Thus, this is a priority project to advance on.

HRC developed the design and bidding documents for the PLC-5 replacement work. In order to upgrade the PLC-5s, a conversion kit approach will be used, which involves replacement of the PLC-5 hardware but allows all field wiring to remain in place. This approach will also minimize downtime.  HRC’s opinion of probable construction cost for this work was $595,000. DUWA issued a Request for Proposals on June 7, 2024 and received bids from four contractors ranging in cost from $334k to $477k. Given that the bids received were significantly less than HRC’s cost estimate, interviews were held with each bidder to assess whether they understood the full scope of work. HRC’s cost estimate was significantly higher than the bids received because some companies can purchase materials and equipment at lower costs and A.W. Schultz indicated that they are looking to expand their footprint and would like to do more work with Veolia OM so they provided a very competitive bid price.

Upon review of the proposals and information gathered during the interviews and based on feedback from references, HRC recommends A.W. Schultz as the contractor to perform this work for a not-to-exceed fee of $341,600 (Attachment 13). Although L&S Electric was the lowest bidder, they had provided numerous exceptions to the contract terms and conditions and excluded critical portions of the project.

As HRC developed the design and bidding documents for the PLC-5 replacement work, they also propose to provide construction administration and construction engineering (CACE) services for the construction phase of the work. HRC proposes to utilize ICS Integration as their subcontractor to assist with several construction phase tasks. ICS Integration would assist HRC with submittal reviews and onsite construction observation. HRC proposes to provide CACE services for a not-to-exceed fee of $46,700, of which $15,000 would be dedicated to ICS Integration for their subcontractor services (Attachment 14). The Technical Committee reviewed the requests to perform the PLC-5 replacement work and authorize the CACE services and recommended them for approval.

Mayor Joseph Kuspa (Southgate) asked if the input/output (I/O) cards will be replaced as part of this project considering that they are dated. Jason Tapp, of Veolia, responded that the processor will be replaced and the old I/O rack will be used as part of this project along with installation of the conversion kit. The I/O cards will be replaced with updated versions.

Motion by Greg Mayhew (Wyandotte) and supported by Mayor Tim Woolley (Taylor) to authorize A.W. Schultz to perform the PLC-5 replacement work for a not-to-exceed fee of $341,600. The motion passed unanimously by all attending members.

Motion by Lou Arapakis (River Rouge) and supported by David Hall (Ecorse) to authorize HRC to perform construction administration and construction engineering services for the PLC-5 replacement work for a not-to-exceed fee of $46,700. A roll call vote was taken, and the motion passed with 73.7% of the vote (unanimous vote by all attending members).

d. As-Needed Engineering Services Contract Renewals
DUWA currently maintains contracts with Hazen & Sawyer, HRC, and Wade Trim to provide various as-needed engineering services that may arise. These firms were selected during a Request for Qualifications process conducted in 2021. Since then, these firms have provided a variety of engineering services including design of the PLC-5 replacements and HVAC improvements at the DWTF, condition assessment of the Allen Park Flushing Gate, and evaluation of pipe inspection videos, among others.

All three of the as-needed engineering contracts are set to expire on September 15, 2024. Per the contract terms, the contracts may be renewed in one-year increments by mutual written agreement of the Parties. Each of the three engineering firms indicated their interest in renewing their contract for another year through September 15, 2025. As their previous 3-year contracts only recognized their hourly billing rates from 2021 through 2024, each firm provided their proposed hourly billing rates for September 2024 through September 2025 (Attachment 15).

The System Manager is recommending a one-year extension to the existing contracts so the Authority only has one large change in consultants at this time – and that is the transition of the System Manager. When the engineering contracts are up for renewal again in 2025, the new System Manager can then work with DUWA’s Representatives to consider whether to continue extending these contracts or issue a new Request for Qualifications to reevaluate and consider other potential firms for these as-needed engineering services. The Technical Committee reviewed the request to extend the as-needed engineering contracts and recommended it for approval.

Mayor Joseph Kuspa (Southgate) asked how valuable HRC has been to DUWA. System Manager Tercala responded that HRC has been very valuable to DUWA as they have been helpful and knowledgeable and have historical knowledge of the system. She added that they have been able to support most of the as-needed engineering opportunities that have been asked to quote whereas some of the other as-needed firms declined. Mayor Joseph Kuspa (Southgate) commented that HRC’s proposed rate schedule shows a large hourly rate increase and suggested that HRC’s contract renewal be postponed until additional information is received regarding their proposed rate schedule.

Motion by Mayor Tim Woolley (Taylor) and supported by Jeff Dobek (Riverview) to approve the one-year extension of the as-needed engineering services contracts with Hazen & Sawyer and Wade Trim through September 15, 2025 at each of the firm’s respective 2024-2025 hourly billing rates. A roll call vote was taken, and the motion passed with 73.7% of the vote (unanimous vote by all attending members).

 

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 the DWTF is running well and peroxide dosing for odor control was not necessary in July.

b. July 2024 MOR
The July 2024 Monthly Operating Report (MOR) was provided in the Board’s pre-meeting packet (Attachment 16). Highlights from the summary and other updates included the following:

• • The DWTF remained in compliance in the month of July and there were no violations.
  • In July, the DWTF treated about 1.3B gallons of wastewater. No bypass events occurred in July, and there has still only been one bypass event this year (which occurred in January).
  • One maintenance position remains open, and Veolia is currently interviewing candidates for this position.
  • Peroxide dosing for odor control was not necessary in July.
  • During the dryer shutdown, keyways and grub screws were found to be missing. Veolia staff tightened the screws and will keep an eye on them. Veolia is unsure whether the system was installed without the grub screws or if the constant expansion and contraction from the heating and cooling caused the screws to loosen and fall out. Future preventative maintenance efforts will include inspection of the grub screws.
  • Routine maintenance was performed on primary tank #3, which has been delayed due to wet weather.
  • The peroxide dosing system for the condensing towers was installed in the Solids Handling Building. The pad and safety shower were also installed, and signal wiring was run. This installation took a significant amount of time. The electrician had to source power to the peroxide dosing system from outside the building.
  • Veolia’s Health and Safety Manager tracks the number of confined space entries performed each month. In July, 6 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 297 Miss Dig tickets in July, of which 22 were emergency requiring a response within two hours.

c. Chemical & Sludge Price Updates
Jason Tapp presented the summary of commodity unit price changes to the Board (Attachment 17). There have been no recent significant increases on chemical unit pricing and no major changes to unit prices are expected. June was 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. A surcharge fee of $1,500 was applied in July as fewer than 20 loads of dried solids were delivered that month.

Jason Tapp presented the sludge hauling volume tracker to the Board (Attachment 18). 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. In July, about 47% of the solids produced at the DWTF were dried and hauled to Canada for beneficial reuse. 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.

d. Existing UV Disinfection System Remaining Life Update
Jason Tapp stated that the UV system is currently running well and is achieving the required fecal disinfection. Veolia recently secured another pallet of UV bulbs for a good price. There are now over 100 spare UV bulbs onsite that should last until the new UV system is online. 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.

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. Community Self-Reporting Status Log
Treasurer Jason Couture (Taylor) presented the Community Self-Reporting Status Log (Attachment 19). All communities except Dearborn Heights are up to date on their self-reporting worksheets. Accountant Doug Drysdale (DNS Financial Services/Southgate) and Treasurer Couture have been working with communities to make sure they remain up to date on their self-reporting worksheets, but they are also assessing late fees where warranted.

Mayor Joseph Kuspa (Southgate) asked through what month the self-reporting worksheets need to be provided for rate setting efforts. Accountant Doug Drysdale (DNS Financial Services/Southgate) responded that the self-reported flows from December, January, and February must be provided by early April for development of the new rates which take effect in July. Self-reported flows for each month should be provided within two months of the data collection. Roberto Scappaticci (Romulus) asked if a time threshold should be set for reporting of self-reported flows considering that Romulus collects data every two months so there will be a continuous lag for providing the data. Accountant Doug Drysdale (DNS Financial Services/Southgate) responded that communities are allowed 60 days from month-end to provide the self-reported flows for that month. Most communities provide their self-reported flows within 60 days, and Romulus typically provides their self-reported flows within 90 days. Romulus also typically provides their self-reported flows for February near the end of April, which are then incorporated into the first draft of the rate package.

b. Aging AR
Accountant Doug Drysdale (DNS Financial Services/Southgate) presented the Aging Accounts Receivable report (Attachment 20). He stated that the total amount in the Accounts Receivable is approximately $2.3M of which 95% is less than 30 days delinquent. No communities have outstanding payments over 30 days delinquent. 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 are being assessed to those industries with outstanding payments over 60 days delinquent as of July 1, 2024.

c. Pending Invoices
Accountant Doug Drysdale (DNS Financial Services/Southgate) presented the invoice register for a request for payment (Attachment 21). The invoice register included 43 invoices due for a total of $5,598,179.76. The largest invoices included those to US Bank for debt payments, Veolia for operation and maintenance services and unit cost reconciliations, and Wyandotte Municipal Services for utility services.

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

 

9. PUBLIC COMMENT
There was no public comment.

 

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

 

11. NEXT BOARD MEETING DATE:

a. Special Meeting: Thursday | September 12, 2024 (10:00AM; In-Person)
Vice Chairperson Kuspa (Southgate) reminded the Board that the Closed Session Special Meeting will take place on Thursday, September 19, 2024 from 10:00 AM to 12:00 PM at the Romulus Athletic Center. She asked the Board Commissioners to encourage their alternates, Mayors, Township Supervisors, and municipal attorneys to attend. Attorney Fausone added that it is an important meeting to attend regarding the Biosolids Dryer Project. The meeting will be a closed session meeting with a request for action to be taken during the open session following the closed session.

b. Regular Meeting: Thursday | October 10, 2024 (9:00AM; In-Person)
Vice Chairperson Kuspa (Southgate) reminded the Board that the next regular meeting would take place on Thursday, October 10, 2024 at 9:00 AM in-person at Taylor City Hall.

 

12. ADJOURNMENT
There being no other business, Vice Chairperson Kuspa (Southgate) announced that a motion to adjourn would be in order. Motion by Mayor Tim Woolley (Taylor) and supported by David Hall (Ecorse) to adjourn the meeting. The motion passed unanimously at 10:23 AM.

 

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

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

Attachments:

1. Meeting Agenda
2. August 8, 2024 DUWA Board Meeting Minutes
3. Monthly Legal Update (by Fausone & Grysko)
4. Proposed Changes to Articles of Incorporation (by Fausone & Grysko)
5. System Manager Report for September 2024 (by OHM Advisors)
6. System Manager Transition Agreement (by OHM Advisors)
7. UV Disinfection Replacement Project Update (by OHM Advisors)
8. UV Disinfection Replacement Project Change Order Request (by Black & Veatch)
9. Biosolids Dryer Facility Project August 2024 Monthly Progress Summary (by Veolia CPM)
10. Request to Purchase Thermal Oil Unit Spare Parts
11. Request to Perform Maintenance Services on Thermal Oil Units
12. Request to Perform HVAC Improvements Phase 2 Work
13. Recommendation of Contractor for PLC-5 Replacement Project
14. HRC Construction Engineering Services Proposal
15. Request to Renew DUWA’s As-Needed Engineering Services Contracts
16. Monthly Operating Report for July 2024 (by Veolia OM)
17. DWTF Unit Price Changes Summary (by Veolia OM)
18. Sludge Volume Tracker (by Veolia OM)
19. Community Self-Reporting Status Log (by Doug Drysdale)
20. Aged Accounts Receivable Report, dated September 5, 2024 (by Doug Drysdale)
21. Invoice Register, dated September 5, 2024 (by Doug Drysdale)