I failed. Going back on item number three approval of the agenda. I think I skipped over that. So there is no consent today because we didn't have the committee's. So is first, is there an approval of today's agenda or any changes?
Move approval?
Support? Discussion? All in favor? Aye. Thank you. All right. Now we're back on to public comment. I don't believe one more call for anyone in the audience with us today who would like to speak? All right. I'm not seeing anyone, anyone online who would like to raise their hand or unmute? No,
Mr. Chairman, and as you said, this is their opportunity to either raise their hand or press star nine on their telephone, and there are no hands up. So a final call would be in order. Okay. Last call
for public comments.
Not seeing anyone we do not see anyone
close that portion. We're on to communications. Are there any bill?
Mr. Chairman, there are no communications for the board at today's meeting. All
right, we're moving on to seven A which is old business. And Nikki, that is you. This is the resolution to approve the second quarter budget amendment which we have the third quarter on there later on in the agenda. We do.
And the the second quarter budget amendments is in your packet. These budget amendments were reviewed by the audit committee at their meeting on April 29 2024. As you might recall, any actions related to budget requires five board members to vote affirmatively. We were did not have five board members last month. So that's why this is being carried forward and the hence the delay and why you're seeing both today. So the significance, really of this budget amendment. The most material item really is this reflected the impact of the board's action to Pending conditions precedent being resolved. This budget amendment reflects potential member partner credits as it relates to resolution of the Highland Park matter. And fortunately, we were able to achieve increase investment earnings that helped to offset much of that cost. In addition, kind of a consistent theme that we've had increased utility costs, we did have a utility bill with the supplier that was resolved. And that presented a slight increase for this year, which we won't have in subsequent years. On personnel, there was a increase as it relates to us filling positions. You might recall, we are conservative when we present our budget, and only budget vacant positions at 25%. Anticipating that as the year precise seeds, and we have success in filling positions, we either cut other areas of the budget where there's understanding, or we maintain an unallocated reserve for that purpose. There was recognized, you might recall back in February, the board received a presentation a joint presentation from Ms. Porter, our chief operating officer for a water operations and Field Services and the bt muram or chief operating officer for wastewater services presented to you some potential compliance matters related to conversion control that would potentially be increasing our our chemical expenses. And so this year's budget was increased a modest amount to recognize that but still really plugged that into the budget. Anticipating that next year, we'll have a full 12 months. I would say that's really the highlights of the second quarter budget amendments that is being presented to you today.
Great. Thanks, Nikki. I know we did talk about this at the audit in May. Are there any questions? Or a motion?
I'll move the motion, Mr. Chairman.
Support. All right.
Any discussion?
So to the members of the audit committee? Is there anything in this particular report, Mr. Chairman, that we need to be mindful of thinking about looking at anything out of the ordinary? I think within the guardrails. Yep,
I think more importantly, it's the third and final budget amendment that we'll have later on the agenda that kind of ties the whole year up to that that one I think will be a little more important to go through.
Okay, thank you. Okay, of course, this
whole prior five affirmative votes are good.
We need a roll call or no,
you don't need a roll call.
All right, any other questions on the second quarter? Budget Amendment, if not all in favor, aye. All right, thank you. Moving on Nikki, we have another item old business from last month.
Yes is another item carried forward was Jackie Morgan, one of our managers and the CFO services team will present beside
me you.
Good afternoon. My name is Jacqueline Morgan. I am the State Revolving Fund Program Manager here at Great Lakes Water Authority. beginning on page 33 of your board book is the item to approve the resolution to adopt the city of Detroit Water Resource Department Water Systems Improvement Project Plan for the fiscal year 2025 Drinking Water State Revolving Fund consideration. DWSD is submitting this project for low interest funding consideration through the state of Michigan's Department of Environment Great Lakes and energy for Eagles Drinking Water State Revolving Fund who does secure capital improvement financing on behalf of DWSD in accordance with the foundational documents related to the establishment of Great Lakes Water Authority, and we geo WA is also the applicant. In order to be considered for the SRF funding, there must be a public hearing Hill to present a summary of the project and allow for public comments. After the public hearing a resolution to adopt the project plan must be approved and signed by the board and included with the final project planning documents submitted to Eagle by the June 1 deadline, which Eagle graciously extended for us. DWSD did hold a public hearing on March 2020 24 for the Water Systems Improvement Project Plan and was approved by the board on the same date to who does not need to hold a separate public hearing on this matter. But the GAO wa board of directors do need to adopt the attached resolution for the project plan. This item was previously presented and unanimously recommended for the Board to approve at the April 29 2024 audit committee meeting. We are asking that the Board approve the resolution to adopt the city Detroit Water Resource Department water systems and furlough project plan or fy 25. Drinking Water State Revolving Fund funding consideration. That was mine.
All right. Thank you, Jackie. Are there any questions?
If not, I'll make the motion to approve. Support.
All right. And discussion. Those in favor? Aye.
Very good. Chairman. This one does prior five votes in a roll call this past one. Okay. statements for Shazam because of what the state of Michigan asked for roll call. Okay.
Chairperson Baker? Yes. VICE CHAIRPERSON Miller? Yes. secretaries that Yes. Director Brown? Yes. Director Hendricks Yes. Director Quadra. LZ
Yes.
All right. Very good. Thank you. Thank you. We are moving on to new business aid as Jackie said still you are still meet.
It afternoon again, my name is Jacqueline Morgan, the State Revolving Fund program finance manager at Great Lakes Water Authority. beginning on page 63 of your board book. We have the item to approve the resolution approving the series ordinance authorizing issuance and sale of solution disposal system revenue bonds and an aggregate amount not to exceed $66,000,000.90 $6,901. This series ordinance is for two projects, one for the geo wa regional system, which is the Northwest interceptor to avoid combined sewer overflow sewer project and one local system project the DWSD West Chicago so stormwater improvements project. The Bond series authorized by this ordinance will support improvements to both the existing and local regional systems. This resolution authorizing Gao wa to issue loans insurance plans through the Clean Water State Revolving Fund, which this program offers low interest rate financing to eligible recipients for clean water projects. The low interest rate loans through this program will result in significant savings in comparison to a municipal bond interest rate and a similar market based transaction. I also do want to point Note that the series ordinance amount of 66 million also includes a 10% loan contingency amount to allow for any fluctuations in the final
award amount.
This item was previously presented and unanimously recommended for the Board to approve at the June 17 2024. Audit Committee meeting. This proposed action does authorize bonds to be issued and requires the final five affirmative vote by the board to proceed because it is issuing debt. And this concludes my items. Thank
you. All right.
Thank you, Jacqueline. So one for GL wa one for DWSD. DSD has the money. So you just have to go through the efforts to apply for the SRF. But you don't have to actually issue the debt. And we got some are pro dollars. So very good. All right. Any questions or a motion? So moved. Support. All right. Seeing no questions are all Commerce on? All right.
Thank you, Chairperson Baker? Yes. By sir person. Miller. Yes. Secretary sec. Yes, Director Brown? Yes. Director Hendra? Yes, Director quadros. Yes.
All right. Thank you very much. All right. Moving on. We have the resolution to adapt the third, third quarter third and fourth quarter budget.
This is correct. There will be no fourth quarter budget amendments. This year, everything is incorporated through the third quarter. This report begins on page 92 of your packet. I will note that this matter was reviewed by the audit committee at its meeting on June 17. That time they unanimously recommended for approval to the board. However, you'll see on page 93, under committee review, I have a note that it's a quality control. And entering into the system, we did notice an error, the debt service line of about $100,000 out of a line that's 228 million. The team still wanted to run this correction through to be to be able to present today. One of the nuances we have with the State Revolving Fund loan program is it's based on advances. So it's not like regular like when we take out marketplace bonds, we have bonds with a fixed debt service schedule with the SRF. It's a drawdown so monthly, we're recalculating what our principal and interest is based on the timing of the drawers. And that's what that adjustment was related to was to a refinements to the Draw schedule. And the pages that were changes where we have changes, it's highlighted in yellow, there's a red note there. And then the reports followed by documentation for the documentation overall, for our operating fund budget for the water system. It has been a rough year on water revenues. As we look at page 96. On the top row, suburban wholesale customer charges, we had a first quarter budget amendment, decreasing that by $4 million second quarter budget amendments by another 811,000. And then most recently, 2.5 million. So that's a decrease of over $7 million, this dollars this year, and our water charges, revenue. We were very helpful. We saw the dry hot weather previously. But as you know, it's been rainy since then, and weekly, the executive leadership team and others receive a report from a cross functional team. And this there was no good news in the past week that would have reversed what we're proposing to you today. So I think that's something we need to keep an eye on as we continue to evaluate the effects of climate change, are are charged models based on historical information. And the question always is, you know, how, how good is the past as a measure of the future. Other budget amendments we have for the third quarter again, increase in investment earnings, I will tell you we have put a very significant amount of time into increasing our internal capacity and getting very specific on our cash flow forecasts. I want to thank our project managers. Our engineers, give us very detailed monthly spend forecasts. So more we know about our cash flow forecast, the better we can be at making investment decisions. And and then just also been lucky that certainly the return has exceeded expectations for this year. So the water system we saw an additional $3 million in investment earnings as we forecasted through the end of the year. operations and maintenance expense we did wind up increasing that had a little bit in the water system largely utilities, Merit adjustments that were awarded in the past couple of months in offset by a slight decrease in improvement extension. But largely, the increase in investment earnings helped soften the other budget impacts that I mentioned. So that's where we're at with our water system overall, page 98 is a snapshot of our sewer system. So the column for the third quarter budget amendments, same story on investment earnings, an increase of 2.7 million, something that's new that we started this year that you may not have seen before, is we break out two separate lines, investment earnings unrestricted and investment earnings restricted, just daylighting. That even though this is our general operating fund, and these investment earnings offset the pressure on charges, revenue, that we can't, they're not fungible for us. So where you see it's restricted for debt, that's because that's money earned in our debt service, or our construction funds that relate to bonds. So those investment dollars stay with that money's earned in our general operating fund, and our improvement and extension fund are at our direction. So those remain unrestricted. In terms of operations and maintenance expense, we did have a $2.8 million increase in Oh, nm expense, I will say largely, that isn't necessarily due to cost increases, that was the owner operations team at the water resource recovery facility, to having some additional capacity and taking on a project that did involve the purchase of some pieces of equipment that were relatively costly, as well as the services to install that equipment. So they advanced as an operations on operating maintenance type project. And so to some extent, even though it's a higher spend, it's a good story that they were able to get that work done within this year's budget. Continuing on to page 108, is our construction fund for the water system. Really, what I want to point out there is where we're at, in terms of our forecasts for construction activity for this fiscal year, is a capital spending ratio, chose the 79.4%. As you know, our engineers, between the water and wastewater systems manage a program of over 160 projects, there's been some of that what might appear underspend is because there was a project that came in very high, the team took the initiative to say, you know, we could probably rebid this and save some money. And that's what happened. But that caused the timing delay. So I'd say a large portion of that is timing delay. Although we always continue to have internal conversations I managing program of this complexity. And using the capital spending ratio, I think, very effectively, to manage a large capital program with making sure that we're not over borrowing, or increasing charges beyond what they could be. And that's kind of a similar story on page 110. With the sewer system construction funds, that capital spending ratio is at 70%. Again, they're the wastewater teams experienced to significant projects with nearly double the cost increases, and we're talking very large dollar amounts. So with the time for them to retool their approach, we've seen a capital spending ratio at 70%. Overall, as far as we're ending the fiscal year, something we're always ever mindful of is we just went through a bond transaction and put together a 10 year forecast and official statements. And at the time, we're working on the documents, we had insight into many of these changes. So there is alignment between our recently released official statements and what I'm presenting to you in terms of the forecast for the year and nd numbers aligned with that. So with that, I would seek your approval of the quarterly budget amendments, as presented, which would really take the action in the form of approving the resolution that begins on page 120.
All right, thank you, Nikki. All right. Any questions? All right, is there a motion to approve?
It does require for five votes but not a roll call.
Okay. Thanks, Bill. Any other questions? If not all in favor? Aye. All right. Very good. Thank you, Nikki. Thank Thank you are still up right. For the rap service delivery authorization. I
think we got that separately, right? Yes.
Last week, your finances in July 1, it's been a little hectic.
So. So I'm back I'm like, Alright, so this the matter before you so, so we have our service delivery partners who deliver our water residential assistance program. There's three entities that we contract with Wayne Metro, Macomb Community Action and United Way. And we have multiple year contracts in place with them. However, because the rat budget is based on half percent of the board adopted budget, we don't know, we couldn't when we establish the contract with them, we didn't know what the half that half percent was each year. So really what we're bringing to you is to authorize an amendment to their contract to insert the budget amount for each year. And something new that we did this year, because we do get a lot of questions about rap is you'll see what's attached that we call a lot of residential assistance, program funding reports with a little bit of background about the rat program, and then different tables of kind of slicing and dicing the information in different ways. So the the total allocation that's calculated based on the board's final approved budget is $4,418,000. Table one of that report shows it by service area in us. So service area being among our member partner communities area one is city Detroit, area two city of Flint. Area three is largely Wayne County outside the city of Detroit, as well as the portions of Wayne and Monroe counties that we serve. Area four is Oakland County. area five is Macomb County with small portions of St. Clair in the peer counties that we serve. And you'll also see that this the budget is allocated 80% Direct Payment Assistance that includes arrearages and monthly payment systems, what's called conservation conservation which includes the home plumbing repairs, and then administration of the program for the city of Detroit. Rep allocation, the city of Detroit has a program called lifeline, which is the city of Detroit version. The other our other communities have the income base plan. So the Rab dollars are used to fund the Lifeline program as needed. Table two just reflects that the city of Detroit through the Detroit water and sewers department does include 1% of its budget set aside for rap. So when you look at the total resources that our region is committing to supporting assistance programs, it's nearly 6.7 million, you'll see the Mt. 6,670,000 at the bottom of that table tab of the next page table three again, and we presented a report to the audit committee back in March. But it was still based on estimated numbers. So we have updated this to come to the final calculation that 4.4 8 million. What was in the budget a doc document because it was an estimate was 4.5 million. So we are proposing, we will be proposing the first quarter 2025 budget amendment or the 181,000 to make sure that we're documenting that we are standing by the legal agreements that stood up the authority that it is in fact calculate at one half percent of revenues. And then there's tables that slice this information in different ways. The last page of the report really gets to the purpose of one line before you and that is to authorize the contract amendments to show you what that makes up. So with Wayne Metro be a contract amendment to establish the total rep allocation or budget for that contract at $2,594,900. to United Way for largely Oakland County for $1,006,100 and to the Macomb County or commute Macomb Community Action of 817,000. So the motion proposed. The cover of this memo represents those allocations, as well as authorizing the chief executive officer to take any actions next necessary to authorize to execute those amendments and carry out the program.
Alright, thank you, Nikki, any questions? Okay, I've just got a couple the First off, can they use more than 5%? towards conservation? That's just how we're allocating, but can they? Yeah, we
out with the allocation. That way, we have come to the board and Audit Committee and board at different times to then that, I would like to revisit the rep policy so that we can be maybe perhaps more agile, and adjusting that as the year goes through given certain parameters. So for example, Macomb County was able to secure a state grant or payment assistance. And, but they have they do a terrific job of delivering the conservation efforts. And so they're asked DeVos was we'd like to instead use some of the ramp dollars to amp up our conservation efforts to help lower people's bills and use the state dollars. So I think there's certain parameters, where we'd like to be able to execute that with reporting out to the board or bringing it sometimes it's a timeliness issue, because you get grants, and you have to spend them within a certain period of time. So they're
able to do that, or at least you're able to take it back to us. Yeah,
exactly.
The other question is, the Board did not adjust the revenue budget did it in its process? No, it
didn't. It didn't. It was why then
it was just a typing thing. Or
it was around kerfluffle, for lack of better word,
we have to fix it going forward. Yes. Yeah. Very good. Thank
you. And that's part of documenting this. I've had some turnover on the team. And so it's just making sure that everybody understands what pieces belong in a
bucket for good. Thank you. Any other questions? Chairman Freeman,
thank you this. So this represents the FY 2025 funding for the rap program. Comparable to last year's funding amount, it is the it's a percentage, right? So so
it's calculated as half percent of each of the of the operating revenue, which includes charges revenues, and then we have some other miscellaneous charges, type revenues, that go into the calculation. And then it's allocated on a pro rata share the water system wrap based on a pro rata share of member partner allocated charges. And then same thing on the sewer system.
So we've got three entities that are listed here, Wayne, united, and Macomb? Who is the the auditor, if you will, that oversees the individual budgets for these three entities at year end, is that us? Or is that some independence.
So that is our so the entities provide the service, they provide a monthly report that gives detail as to the household that received assistance. Again, we keep this very confidential because it is it is information protected under FOIA. But the households receiving assistance, how much and arrearage they received, how much in repairs, and we're actually building out a multiple year database. Because now I think we're at a point where we could take this program to the next level, I think with this data start making some ass because we're running out of funding. Macomb County exhausted its funding this year, City of Flint doesn't get much because of the pro rata share that funding spent on doing a presentation in Oakland County tomorrow. I think we're approaching 90% of the stands of this year's budget in Oakland County. So the program is working. It's working very well. We're working on testimonials. And it's like it's life changing for people in terms of being maintain independence and being in their home.
And so that was really where I was going with this. And my next question. And that is are the are these three entities actually utilizing? Most if not all of the dollars? And you just answered that question for me. It is a it's being marketed, obviously to those who need it. And I'm happy to hear that each of them are utilizing the dollars that that are being allocated for this. It is a percentage, as you just indicated, and it is what it is. So there's no chance that there's additional dollars that would be going into this unless there's some what bylaw change on the part of the board or for what so that would be a
legal question that I would defer to Mr. Wilson or Mr. Jones.
Will the Mr. Jones check that? We have, we have advised the board but in essence, because of the manner that this program was created, which was a part of the City of Detroit's bankruptcy if you weren't able to obtain the easiest way would be to reopen the City of Detroit's bankruptcy. And in order to increase get to make that adjustment otherwise judgment and the percentage that is carved out in the right. bylaws. Yeah, otherwise you have to get unanimous approval of this court. And then you have to get approval the county commission for Wayne, Oakland and Macomb County. Well, I'm
here again to say something.
Detroit said 1%. We didn't we didn't open up any bankruptcy to get to 1%. Right. And if somebody makes the motion, I'll support it if it flipped once more money. Macomb County is running out of money. And Nikki said that this is life changing for people. And we're running out of money. This board can approve taking it from a half percent of the overall budget now. I'm not a lawyer, and certainly we'd have to get but it's precedents. Detroit didn't.
Detroit increased? Yeah. To 1%? The rap amount? Yes. Okay. To 1%. All right. At this. Listen, this is just a question out of curiosity. And I'm happy to hear Mr. Brown's input on labor. Mr. Chairman, I just had a couple of questions that need finance.
And that was with the approval of the board, we can find the communication on that if you if you want. But
I think eventually we'll be, you know, for discussion point. Now,
if somebody makes them out in your county or flan or Macomb County wants to help more? Well,
I will say I will say this, I think it's it's important, I can speak from Macomb is we did fully use it for the first time. However, we also have a million dollars this year, and next year to 2 million total in state funds. So you can say ramp might be fully spent. But there's still other funds that are out there. So I think you have a look at the big picture lease terms. And I
just remember in prior years, there was some debate discussion on whether the rap was being utilized properly, whether it was getting exposed across the authority region. If everybody knew about it, if everybody had a first opportunity to participate. It sounds like there has been some changes. And those changes have been positive. And that's that's a good thing. Where we weren't three or four years ago, when it seems that there weren't a lot of people.
And I would say for mobile phones, we still have work to do. And I think that the change in the provider is obviously I'd like to see another full calendar year of United Way handling Oakland County's use, because they're a little better. But I don't think we have enough data to say that that problem has actually been solved, at least.
We know that there's need out there. It's just a question of whether the source of the money can get to where it's needed most. And it seems like we're on the right path. Thank you, Mr. Chair.
I just want to add, whenever you're ready, I'm in support, I want to support
you and oh, man, how did you do it? Your attorney said you could do it. But
But before this board, did we, the legal staff of this board was the resolution that differences that was a community that wanted to balance voluntarily increased what it charged to its residents. Right. And so,
so let me take it one step further. If each county then said, I want to do that. That GL W is a whole Beach County, maybe all of them collectively. But would would that get around the two options? You
I think we should revisited the board is is is is interested in doing this, we can certainly revisit the substantial legal review that we had on this issue.
The issue with Detroit was Detroit have freed themselves to do it and use their own dollars. Right. As a as a community. We mean as a board. If all of the communities are just kind of put money into the pot.
They all collectively do it, then it's the same as the whole deal anyway doing it in theory. But yeah, I think at some point we should take it
to Jay's point. Another year of looking at how things are going in the respective communities will put us in a stronger position to take one side or the other or not
appreciate directors brown offering comments when it's in a tough spot to say the least mathematically as well as a need for services. And we strategize to do two things. One, we brought in another entity. G card is acronym The details that matter, but it's another entity to further facilitate moving resources to the need. The Community Foundation has funded to individuals beef up their capacity to get more money through. But I don't know the right number to ask for at this point. So I want to do a little bit more due diligence, but reserve the right to come back and talk about and ask. I've quantified the need immensely. But I didn't know what my options are in that space was thank you for putting it on the table. Thank you,
Nikki, when you're working with your people are working with Wayne Metro. Have they spoke about the fact that they could use more money for the suburban communities in Wayne County.
I'd say it's a universal statewide conversation going on about the need for water assistance.
Waiting List of so to speak of, you know, communities have like a waiting list of people in South get into or Melvindale or garden city waiting for some help with. So
way Metro has managed the resources to meet the needs. I know they have provided service in Flint, we did have to turn people away because we ran out of the resources. I have not received reports of anybody being turned away in Wayne County outside of city Detroit yet. But we're we're this is the first year where we're at about that 100% utilization. So so that is going on. I think one of the other things as related to a topic later on the agenda today, now that we have a contract with the city of Highland Park for water and sewer services, Island Park residents previously were not eligible for rap, but they now are.
Well, like Mark was saying dairy in Bremen as well. Perhaps we need to move it out. And, and we should talk about this. It makes you know, we should all do a little, as Mark said a little more due diligence. And perhaps we should be going in that direction. Get ahead of the game, as opposed to you know, people pounding on the table, please, please, please be ready. for that.
Mr. Chair, just just one final comment. I mean, there. I mean, there is legislation pending in Lansing that would charge every account in the state of Michigan to dollars to pooled dollars that would be available for these, these programs. And I know there are some counties in the state that that are not in support of that. And there are others that are I think that by the end of the year, if if the legislation passes, it will be done in lamed. Up. And so you may want to wait until that a decision is made either that legislation is dead and not going to go any further is also an opportunity for the federal government to extend a second year of live walk dollars that could also be used for these these programs. So you know, there are still some cards to be played before. Probably we should be looking at
my memory serves me correctly about three months ago, maybe maybe a little more longer than that. That was we had people here asking us to pass a resolution in support $2. And they were taking they were taking it to Lansing to et cetera. That's what you're speaking of. Yeah.
And the board did pass it.
We did pass that that motion. And we ever done it.
Oh, not you, man. Yeah. So no, Macomb objected. Oh, you did?
Oh, there it was. Gary
Gary's point. There even maybe additional state dollars to see if it's in the budget
or not? Yeah. And from the choice perspective, if all of that other dollar if all the other dollars came through, it still wouldn't be enough. And we'd still be at. I'm glad that we're at 1% as opposed to one to a half. That's we have, we have a great need. And in the past his body was good enough to transfer any dollars that they didn't spend in the suburbs to Detroit to allow us to use though. Now we've gotten much better at getting the money out the door. And as it Nicki said, it's there's still a need and life changing for some of these families to get this done. So we all I just have to keep fighting for long term funding that's fair and equitable to everybody. And that's that's how I would be fair and equitable. Everyone's. Well,
perhaps we could talk about what talking about this further at the July meeting? That's too soon. But certainly, as it's been playing out, it's been life changing for for a number of people. And so I'm I would, I wouldn't, I would appreciate having some further conversation.
All right. Any other
Exactly? What would you like? Like it to be an open discussion meeting? Or that's too soon, August board meeting, I understood. Would you like us to recirculate the legal advice that you've received before you took your previous action? Would you like this to be an open discussion? What is it that the sport would like
I for one, want to wait and get data retrieved. And I want to do what Gary just suggested, because we are not the only source of funds. Okay, she really being like you have for more than a year, pushing hard and listening hard about what are available sources out there. Because the money the need far exceeds what we are going to be able to come up with. So I would I wouldn't oppose waiting some time. I
have no objection to waiting. But I would like further dialogue about this, perhaps rain until the fall.
Time to bring it back around, in my mind is after my wife's done, okay. And after the legislation that's pending gets resolved. After those two gates have been cleared, then I think it's time to talk about when we bring it back.
If I may comment, from a staff perspective, we are building a database. Because again, we we see the funds getting utilized. We're trying to position ourselves for ass to foundations and other places in the future. The nice thing about rap is it's a consistent funding level source that you can count on the appropriation here, appropriation there, get people enrolled, and it's like, oh, now money's gone, I'm gonna have to wait again. So I think at a staff level, we'd be better prepared in the fall once we complete that database and analysis to kind of show you what our pitch book might look like. And have something that's more thoughtful for you to look at at that time.
Right. Very good. Pretty good. All right.
What do you need as chairman? We
have a motion.
I'll make it.
Further discussion. All in favor, aye. We're good. Thank you, Nikki. Thank you. All right, Bill, item D. Thank
you, Mr. Chairman, William Wilson, Chief Administrative and finance officer, before you is resolution 2024 2006, which is a salary adjustment for the CEO of post salary adjustment for fiscal year 2425. PEAT is approximately a 5% salary adjustment. And as indicated, in the resolution, the CEO did not participate in the mid year adjustment that was provided to other members of the team. And under her contract, it does require annual review, and then asked by this board to make an adjustment to our compensation, and without a motion to approve would be in order, but I'd be happy to take any questions you or your colleagues might have. All
right. Any questions or a motion?
I'll make the motion to approve. Support. Further discussion?
All in favor? Aye. Thank you, Bill. We're gonna build the next item. Mr. Chairman,
before you is resolution 2024 2002 1008. Sorry, bad eyes. And that is amendment number one to the CEOs employment agreement. Mr. Chairman, this, this amendment does two things. First, It amends the agreement to increase the annual bonus eligibility for the CEO from 5000 for meeting the expectations to 6000. And from 10,000 for exceeding expectations, to 12,500. And that that amount, hasn't happened previously adjusted in the tenure of this authority. And so this would be a realignment. The second thing that this amendment does is that it amends the exhibit B to cash and uses me to the contract to basically clean up other language in that exhibit. So that it is consistent. There made references some one time actions that took place and those have been deleted. So with that a motion to approve would be in order and I would note that this and it would require five of our votes.
Okay, very good. Any discussion? All right. See none. Is there a motion? So moved. For? All right. All in favor? Aye. Very good. All right. The Honorable Thank you chair we have, we did not have onr. So this is gonna take a little longer, but we have item F, go ahead.
So for chief operating officers, more info services for you is proposed change order number. We do have urgent contracts that allows us to support the system, especially with the ramp up of our programs such as about exercising
linear assets, of Thank you Sorry, as as well as the CIP, one of the things that we do is that when we have a disturbance in our system, we do try to allow time for a planning team to get in to check out that asset, it turns out that we had a water main break on a 24 mile. And upon doing that condition assessment, we found nine segments of pipe that were in need of immediate repair. We do have to have these type of contracts in place. We're asking for this specific change order to complete that work that has been initiated under this contract. In the next contract, I'll be talking about the replacement contract. But the reason why we proceeded with this change order is that we did not know where that new contract was going to land or who was going to acquire those services. So we thought it prudent in order to keep moving forward movement on the system to get this correction done since it was identified during the condition assessment. And so we are going to continue to move forward with this change order. Number five. And with that, I'll answer any additional questions, or any questions
on this? I just have one, it's more about the project itself. But you know, maybe is it peep from who's the project manager? Whoever the project manager is, maybe we can set up a time for for this person. And I have more, more questions on the project? Not okay, contract. Okay.
We can do that. Yeah, we can arrange it would be the person. Okay.
Thank you. No other questions? Is
there any I mean, I did attend the water analytic meeting, I think yesterday or the day before, and I thought that your team did a outstanding job at that meeting, going through the projects. Thanks, Shannon did most of the talking. But it was very informative. I think everybody in the room appreciated it.
Thank you. Thanks, Gary. Anything else? Is there a motion to approve?
Support?
All right, all in favor, aye. Very good. Next item chant or Scherl is the next the new contract for them.
So what you have before you is the replacement contract to the previous contract, it was a quality based selection, we did receive two responses. And we do have a staggered concurrent emergency contract. So considering what we can run into, we didn't want to exhaust any one resource, I wanted to make sure that the authority had ample resources to address whatever situation we were faced with. Whether it was an emergency or urgent, we want it to be able to adequately support our programs such as CIP valve, exercising and elsif. So we do have both of these contracts in place and one was up for renewal. And this is the new contract before you. And I believe Rickman was the winner yet. They won this again. So with that, I'll answer any questions.
Any questions? If not a motion to approve, to move approval
support.
All in favor? All right, thank you. All right. Maybe we have several items. First one being modifications to the sludge feeding system. Thank
you Mr. Chairman Navi muram Chief Operating Officer for wastewater operations. Before you is a request for an extension in time to waste construction for the incinerator sludge feed system, a complex to this project kind of has some history and we have discussed this several times at DOE on our committee. More specific The project was broken up into three phases. Two of the phases were complete. The third phase has had some performance related issues that our team has been working with the contractor on. We believe that we're at the homestretch, all those modifications have been made. And we are in the process of setting up for doing it 30 Day performance test, the requests before you is to extend the time in the contract to allow us to continue working with the contractor to complete the performance tests and with the hopes of closing out the project. And at this point, I'll take any questions.
All right, any questions? of either we I know we're extending it not any additional money or the project itself? Are you in negotiations with them in terms of damages or all that I don't need to get into it for interest.
So letters have been issued in as a notice. But there's there's a lot of complexity in this project that the team is working through. I'm not prepared to speak on that specifically. But the contractor has been put on notice on different issues, but it is a large project, and that is something that would
work. Okay. Thank you. Are there any other questions or a motion to approve
the move?
Their support support?
Okay. No further questions. All in favor? Aye. All right, maybe. Next item.
Thank you, Mr. Chairman, Nabil muram, Chief Operating Officer for wastewater operations, I request that we take item 2024 10, and 2024 2029. Together they are one is the contractor services. And the latter one is the consulting services associated with that project. This project is really a project that you know, proud to say that it is right at the heels of the completion. It really can contain two components. One is the ferric chloride system, or pump station one. This is a chemical that we add for phosphorus control, the project is complete and operational. The second component of this was to clean an activated sludge line between two of our solids handling processing facilities, the line had build up accumulation of what we refer to as Vivi night as a crystallization of phosphorus. It took a lot more iteration of cleaning than we had originally anticipated. We worked through the challenges with the contractor and the contractor performs several cleaning efforts. And through that we were able to achieve the performance that we had anticipated. However, unfortunately, because of those iterations, it did require some delay in time. But furthermore, we had delay from the Conrail, as we had worked with the railroad, as we do have a track on the plant grounds that we had to go under to perform this work. Because of that the project delay, we are requesting an extension in time to be able to complete the work and finish up the final punch list items prior to closing out the contract. And I can take any questions on this. Or
any questions on this one? Do you want to talk about the next one or just we want to vote on this one?
I believe it's the same, it's really the support of the next one is also the same thing. It's just make sure that we have that continuity of construction administration
services. I did have one question on the CCA so no additional costs on this. Even though we've gone way past the days,
that is correct. No additional costs associated with
just what I get from straight with this. One motion would cover to these these two projects or do you need a separate motion for each
request is to take items i n k as a single motion and you
can i n k Okay, so I thought all right.
Okay. All right. Further discussion. Approval for i and k All in favor. Hi. Thank you. Alright, next JW.
Thank you, Mr. Chairman. The project before you is the renovation of the hazmat building. This project is was was awarded to LaSalle construction services. The project has progressed well. It is in its final phases, it is a facility that has met walk you pi within the WR F plant grounds. This renovation of the building has been tracking there's some final items that the city inspection has identified that as listed in the justification of this board letter. The request before you is an increase in costs to allow us to fund the additional services that's that was identified through the inspection, including oil, water separator and some additional pavement work. And then finally working through with the contractor on some potential general condition claims that have been submitted. This is something that our team is working through to develop the validity to it. And that is why we're asking for the provisional allowance that allows the team to negotiate the final amount. And then preceding that the remainder will be the remaining balance will be funded back to the gentleman.
Are there any questions?
So what's at stake is 176,200 106,000
is really what the team is negotiating through? That is correct.
Is that unusual Nivi that we give a thought I assume because you're taking the other two change orders to us, you want to get it all done in one fell swoop.
As it relates to bringing the item as a
for the See Item just because it's premature.
It is it is really to be able to advance. So to be able to that is a correct statement for us to be able to have enough provisionally allowance for us to close the project without having to come to
the board yet. Okay. But you'll go through legal and all that
we have we have discussed it. And we think that this approach gives the team enough flexibility to continue to do so I can be blunt, hold the contractors, feet to the fire while allowing the project to advance. So we have had a fair amount of internal discussion on that issue. Good.
Any other questions?
Or motion? To move forward?
All right. All in favor? Aye. Very good. All right, maybe Thank you. Presentation. You're still doing that. Yes. Maybe I have one question for you. Were you getting your PowerPoint ready. Newer acting CEO, do you make any changes to the organization?
There was some fear of that. Fortunately, we have a great team and everything went wonderful thing that time.
All right. So this is our this is our resiliency team progress update for the for 2024. And I wanted to kind of start off as always, really, just that repo. As always, I like to start with this graph. I know that this board has has seen this graph, but I feel that it is, it's so important to know that none of this work that I'm going to be presenting would have been done without this group. It is a complex project that is a complex list of activities. And this team has really stepped up and incorporated the needed services to be able to advance this project
forward
at a high level to give you some insight we have out of the 25 recommendations that were identified from the 2021 study investigation. Seven of them have been completed. 14 are currently in progress. One is dependent on the success of a pilot project at the Conner Creek storm pump station, and three are depending on the regional flood mitigation study. Later, I will explain some more details. But I am excited to say that two of the key things one being the electrical resiliency study kind of coming to its closure is going to really remove four of the In Progress items to complete it status. And with some successful conversations with the Army Corps, we believe that the three regional flood mitigation studies soon is going to go into the In Progress category. So that's a pretty significant move to have for us and being able to continue forward with the completion of this effort. I'm not going to really spend much time on these slides. This is really giving you the granularity of the summary table that I provided earlier. So to jump right in on this slide, this is the power resiliency study, preliminary results that we have identified and I'm going to explain the graph and also just the teams that effort so first, this is for all the nine sanitary combined sewer pump stations that GL wa operates. The there's technical memos associated with each one of these stations that looks at several scenarios and alternatives and costs associated with each one of those alternatives. And then finally, the draft summary memo that has been put together in in current state which is in preliminary phases. When you look at the The data table what you see is three columns really on the far right. The columns indicate the current existing availability, which availability is what is referred to as resiliency. So I'm going to take one step back and explain how this calculation is done. When we talk about resiliency, we talked about availability. What this project did was it incorporated availability of the station over a period of time specifically for us was a 30 year period. What we do is we leverage the tools that we have already created our wastewater asset management plan that has risk scoring associated with it, we conducted historical data, which is the outages that have occurred over the time of at the facilities and related to electrical equipment. And then finally, condition assessment, we went out open cabinets reviewed the conditions of the current equipment today. Based on that information, we plug this into a simulator. And the model runs over 10,000 scenarios of different outages based on Meantime, between failures, the different failures that have occurred, and based on that it produces a percentage of availability. So what this means that over that 30 year period of time, the availability of this station, for example, at Belle Isle is 99.7%, which is phenomenal. And then in some of the scenarios, you'll see that, for example, at Conner Creek, it's currently at 95%, which is still a pretty high percentage. But what this study allows us to do it says if you want to achieve 99.4% We need to invest $4 million into electrical reliability. And to give some context to the percentage increase. If you recall, many of the facilities that we have, are only supporting one leg of DTE. For example, at Conner pump station, we have two transformers. We have four generators, those four generators support one feed that comes in from the utility side. Most construction more modern construction would design the switchgear that allows you to have that generator service both feeds, so it could feed depending on which which feed goes out. Really the investments that have been identified is making modifications to the switch here so that the generators can support both feeds. And you can see that the percentage that we will come up to with the few facilities that we have is phenomenal, even though I will say that the percentage that we are holding today is commendable as well. And it is due to the history and the kind of the commitment of the organizations that have invested into our infrastructure.
To continue on with some of the some of the other remaining projects. What the intent with this is, is I wanted to make sure that we understood kind of where we are today. So with respect to the pump seals at the Conner Creek pump station, the project is progressing the new panels will be arriving soon. And we hope to have that project completed by before the end of the fiscal year this year. On the vacuum priming system this project is a little bit more complex. This is something that has not been done before at this facility we are kind of leveraging different technologies. So it has taken us some a little bit of more time to get this out for advertisement. But we hope that we can get this project moving soon and move moving forward and have it prepared for next year. As it relates to the pilot project that I refer to on the summary table, we are at 100% design. I will say this has been one one interesting journey as we have worked through this because the level of detail that we have to figure out of how to get a pump that size into an existing facility has been an engineering feat, and the team has done a great job walking through all those details and challenges. But the project has reached this 100% And now we are working with our procurement partners to get this project moving through the procurement process as it relates to the sanitary pump station, which is a replacement to the existing Connor pump station. This project is progressing well as well. We are we really spend quite a bit of time identifying the most optimum construction that we will be able to build at this location to minimize the impact to the community and also minimize the cost of the facility as a whole. This project is moving forward as well. And it's between 30 and 60% design. Route pump station improvements this project is pending award. This honorable board has approved it, we are pending to issue notice to proceed and it is one of the projects that has been awarded by SRF. One of the challenges that we are working through is the community impact. We have had several outreach programs with the residents with the community with council, and we have not had success in progressing the project forward through the the city's council because the requests to have more engagement with the community. I will say we are even having an engagement event today. With this project after this meeting, I will be leaving for event that we are hosting as the East Lake Baptist Church to do a complete design review. Some of the key concerns that we are hearing on this project is really the size of the facility. And the really the the ultimate bottom line with this is the purpose of the reason the size of the building is what it is, is because we are trying to minimize the impact to the community. Although the building is large, it is containing all the infrastructure that we need to do to maintain this facility. The alternative to this will be bringing in cranes and heavy equipment that would not be really desired to our understanding, but that is what we're going to discuss with the community and walk through those different alternatives with them. We hope to have that today at 530 at the East Lake Baptist Church. We also created a website for the fruit Pump Station project. So now we have a way that we can keep the community engaged and keep them updated as the project progresses. We have a q&a documentation in there that there are several common questions that we have received that we continue to update the website, making sure that we are making those connections with the community. This is really how all these pieces fit together. I apologize in your packet you do not have the final line item that I added to here but I thought it would be good to just kind of see where we are today and how all these pump stations and projects will kind of dovetail to each other. You can see at the bottom working my way up. This project is now has experienced some delays because of this, the work that we are doing through this engagement and we are hopeful that the project will progress forward. But it is starting to creep into the project schedule and we are monitoring that closely. And on track with the remaining project with the new sanitary station and the pump station one or the Conner Creek pump station rehab phase one, those projects are progressing and actually with phase one we are slightly ahead of schedule which is which is wonderful. Several other projects that are moving forward the regulator gates and the ISPs. These are facilities that are really intended to operate on every rain event on the smaller rain events. We made significant amount of investments and ensuring their operability so that in events that they are able to to function and provide the relief that's necessary. These projects are closing bows out. There is one last item that's remaining as you can see engineering director repairs which I will be bringing to this board next month as it relates to some of the as needed services that are needed for the ISD system to ensure their reliability as well. There was a component in that project for us to go and inspect the ISD outside the baselines to confirm equipment, resiliency, that kind of creek sewer project and rehab this project that debris removal is complete. That component is complete. We are working with the airport as it relates to some of the more grouting and repairs underneath the airport. And we are the a portion of this project as this board is aware we are requesting reimbursement from FEMA and we are continuing to work with FEMA on that reimbursement amount to the ers slip lining that is commencing soon between six and seven mile and that will hopefully be done before the end of fiscal year. or before end of calendar year. And then finally, we have made some changes to the Conner creek for Bayes, which allows us for better maintenance. Because of some of the challenges we ran into we did not have the tonnage that was necessary for us to comply with our contract, we negotiated with the contract that added the forebay to that work and negotiated a better rate for the smaller quantities that was found in the store, instead of what was originally bid. As I indicated with the flood resiliency study, this project is moving forward, I'm glad to see that and in here that we were identified and funded in the presidential approved budget for 50,000 for 2024, and 60,600 1500 1000, for 2024, and 600,000, for fiscal year 2025. And, and as soon as we have the signed agreement, we can start accruing our 50 50% commitment for in kind match. And I can speak to that. And as well, and I know the team has been working very hard on this. It is it is it is a complex matter. Finally, on the level sensors, a lot of work has been done with this. And this one, I am excited to kind of say as we're working towards completion, we're also highlighting tools that we were putting in place to harden our system and inform our team members. So first with the level sensors. One of the things we did as part of this project, as we were working through the level sensor effort, we determined that it makes more sense for us to engage the sanitary pump stations and give the team better tools, so that the calibration of the level sensors are on par station to station. And so what we did with the nine facilities, we went through installed different monuments, we did field measurements, we developed schematics and the graphics on the right shows you that monument. So now the technician doesn't have to assume they can measure directly from a monument down to where the level sensor needs to be because those are critical points. And then we also develop standard operating procedures and standards between stations so that there's consistency on how we calibrate across the board. Within all of our facilities.
The level sensor effort as a whole within the collection system, we have over 236 level sensors, and we are progressing well on advancing these projects. So this is a table that really gives you the the priorities that we have established from the criticality of the instruments and where we are with respect to progress. The dark blue line really represents our advancement from the last quarter presentation. Some of the projects are dependent on contracts, those are CIP contracts that we are monitoring as well. But overall, I am happy with this performance that the team is maintaining and progressing the level sensors within the collection system. So this is one of the fun tools that we have developed. That really gives a holistic look after event and gives our team more visibility into the system. As you can imagine, it's very difficult to maintain 236 level sensors, the sensors are spread out throughout the entire city. And it gives us and it takes it's very time consuming to go level sensor by level sensor. The tool that we developed is it's a diagnostic tool that really collects all the level sensors that we are operating within the city, inputs it into a graphical representation, which is our diagnostic tool you see in the graph. And it outputs a one dashboard, which really highlights these are the areas where there is anomalies. So it's really anomaly detection. It is saying that in a normal case, this is where the levels have been. But we are experiencing an anomaly. And based on that we can make a determination of where to send our team to be able to ensure quick turnaround of those level sensors so that we are prepared for the next storm. This graphic shows you a perspective of in that scenario, that location visual location of where we have potential faults that the team needs to be dispatched out to to make corrections. This graphic really gives you the details. If you notice how for example, there's a lot of D details here. But if this diagnostics here says that there's a lot of rain and the levels should in the sewer go up. We need to understand why the level sensor blind was the is the level sensor bad is the level sensitive clog is that have a lot of debris associated with it. This allows us to dispatch quickly instead of having to go instrument by instrument. This really gives us a quick diagnostic tool. And that is the summary of this quarters presentation. I'll take any questions. All right. Thank you, Naveen.
Gotta come whenever you need City Council's approval.
There's several committee meetings, we do need city council approval because this is we are utilizing the right away for the location of the fruit pump station because the two interceptors run right along fruit street. So we do need Council's approval to vacate the right away and allow us to relocate the right away around the facility.
I assume your meeting today at at the church is to try to get the support from the community that the city council is going to need in order to That
is correct. We have we have partnered with Councilwoman Johnson, she has been she has been been a significant amount of help, again, making sure that those connections with the communities are taking place. The event that we have is really been It's hosted by us but in partnership with Councilwoman Johnson and Councilman waters, to help us in communicating what this project is the benefits of the project moving forward. We have had, as I indicated several of these meetings. This is diving deeper into the design. There's concerns as it relates to the facade potentially. So we are going to present those and the reasoning behind those. And we hope that we walk away with a direction forward at the end of the day. Good luck. And I am always open to recommendations. As always,
we've more than happy to join. Yeah, I
mean, you can't you're not going to be able to change the size of the facility. But certainly the facade, the color of the building, the landscape should all be up for consideration to give them what they want. Absolutely. I mean, I'm sure there's lessons learned and the earlier you get them involved. city's going through something right now where we're trying to take 128 acres and turn them into solar fields. And that's, that's taking homes paying. It's a very complex issue. And the earlier you get started in kind of field, solar solar panels, a solar panel,
but 28 acres. Yes, yes.
But the earlier you get the community involved in the beginning, as opposed to going back now and having to try to convince them that obviously the better off you are
but you have a big roof. You're welcome to put some solar panels on.
I opted out to not do that.
We came earlier we did work with Fisher Stein on that issue and they
don't want them on buildings as you know they want them on on the ground next now.
I know the questions. The one question on the Conner Creek, the vacuum and the priming, the $4 million repaired or improvement that'll still be on we're not getting rid of those pumps. We're keeping those pumps right as part of the rehab.
So two specific two questions one the electrical resiliency you heard 4 million the 4 million is as around modifications to the electrical equipment Oh
okay.
The vacuum priming and the seal water work is really modifications to the existing pumps
and are we keeping those pumps
are those pumps for keeping now for the pilot project where we are replacing two of the pumps with vertical pumps. Those pumps we are disposing of those a cast iron pumps, the team doesn't really believe we will try to keep what we can. But those those have been installed since the 30s and then likely chance of us being able to wrench on a bolt that's on a cast iron is going to break the cast iron and we won't be able to recover.
Okay, very good. Well, thank you sue for having this on. To date, and maybe three or three years later, right, so it's good to get an update on the progress of the work. All right. Motion received file. Support. All in favor? Aye. All right. Thank you. Naveen. Bill, we have two legal items are the first one at least Yeah, I'll
take the first one. Thank you. Mr. Chairman. William Wilson, the chief administrative and Compliance Officer before you is resolution number 2024 to 30. This is an easement agreement between GL WA and the Rochester community schools. For a property located on twin Dequindre Road in Rochester. That is necessary for us to continue to work on our 96 inch main relocation, the payment to the schools would be in the amount of $16,520 for this easement. I will be happy to respond any questions you might
have any questions? There was a permanent easement.
I believe that it is.
Your motion? So moved. Good.
All right. Further discussion? Seeing none all in favor? Aye. All right, thank you. Geordi, we have a collective bargaining agreement.
Good afternoon, Jordi Kramer, Chief Organizational Development Officer, this is my first time presenting in front of you. It's exciting go easy on me. I'm bringing to you a collective bargaining agreement for the senior water system chemist Association. This is a three year contract. There are approximately 61 team members represented by this union. To give you some highlights of what we bargained. We are incorporating holidays and excused time off to match the hours. So we have some team members that work a 12 hour shift and their holiday pay will correlate with that we are increasing shift premium for the afternoon shift from 25 cents to 75 cents, and the midnight shift from 50 cents to $1.50. And we did include a $2,000 signing bonus. And I will add that there is no guarantee or automatic annual pay adjustment, which is consistent with our collective bargaining agreements is we are a performance based pay system. Team members are evaluated annually. And there is no change to retirement medical or other related benefits. I am open for any questions. All
right, any questions? So
the chemists they work 12 hours, four days a week is that they
have varying schedules, some work 12 And some work eight, it depends on on where they're assigned. But we this will correlate with their schedule. So if they were working an eight hour shift or 12 hour shift, they were only getting eight hours worth of holiday pay. So it does match. And also with the time off that they take they put in for 12 hours, their vacation time. PTO time is at 12 hours.
Jordy did you say 61? Members are 5161 60.
The other questions? Do this kind of sets the pattern for the group groups.
Well, we're at the table right now with others. So we'll see where that goes. Hopefully that will get those wrapped up very quickly.
Good. Any other questions? Not a motion for support. All right. All in favor? Aye. Very good. Thanks, Jordan. I write reports. I think Bill.
No, there are no no reports with the parent. Okay. There will be one other matter that I did want to let the board aware
of their other. Okay. remarks, no chairperson remarks board member remarks? Any? Oak gentlemen,
thank you real quickly, I just wanted to express my thoughts about the conference that I attended, along with some other members of the board in Anaheim. And it was very, very interesting. Some of it I did not understand at first, but as time went on, they got into subjects about long range planning. Jody Cole did a great job with that and some of the other presenters among the Long Range Planning Committee and I felt it was really very worthwhile to be there. And, of course, we got a chance to brag about Cheryl Porter.
Yeah, very good.
Thank you.
Thank you. Any other comments? All right, we will move on to the CEOs report. A lot of good stuff this month. Suzanne.
There is a lot there are a lot of good things to report out on so thank you for that. So I am pleased to begin the report with the sharing that we received very favorable outcomes from the recent About transaction might recall, we were had on the heels of that, and we had a verbal update. And I wanted to make sure that we get this into the writing and the CEO reports is really important. So the outcomes included an affirmation of our strong credit ratings from all three rating agencies as well as reduction of the reserve requirement to zero, which allowed jail wa to use the funds in the existing reserve accounts to reduce the size of the transaction by $32.2 million across the two systems, and improve total cash flow savings of 130 point 4 million. So it's very, very good. I want to thank our chief financial officer and treasurer, Nikki Bateson, and her team as well as everyone who participated for their outstanding efforts, just six short months after our last bond transaction, an incredible amount of work goes into these transactions. And our team always rises to the challenges. So we always focus on our financial team, and they do an absolutely excellent job. But it is important to note that it takes the whole team to put these things together so many, many hours, hundreds of emails, lots and lots of coordination to get to this point. So thank you. Well done. I am pleased to announce that I have promoted Bill Wilson from Chief Administrative and compliance officer to the new role of Deputy Chief Executive Officer. This promotion is well earned and reflects his extraordinary abilities to provide this organization with counsel and leadership in a broad range of areas, including operations, human resources, emergency management, finance, legal and legislative bill is an incredibly insightful leader. You likely know this, you many of you have worked with him for a lot of years. And he is a dedicated public servant. No doubt about that. And he has worked tirelessly during his time at first DWSD. And now here at JL wa to help ensure that the people of Detroit and Southeast Michigan have access to clean, safe water. And I look forward to continuing to work with him in this new role. Congratulations, Phil. So while we're talking about Bill, I want to make sure that we point out that he was recently chosen by the State Bar of Michigan to receive the 2024 Frank J. Kelly, Distinguished Public Service Award at the state's bar meeting in September. This is
just to be clear, this is the Yeah.
It really is. So it is absolutely something we are we are very proud about. And I think what what this does, when I look at what this is, this is decades of dedicated public service, this is absolutely something that is not is not common. It's very uncommon, actually, it's given to a member of the State Bar. And I'm going to read exactly what it is because I think this is also important. It's really important to understand it's not just oh, he's a good public servant situation. There's some pretty significant things in here that I think characterize Bill's career in a way that is unusual. So he has served the public sector in a way that strengthens the American system of justice under the law demonstrates the highest standards of integrity, fairness, leadership, excellence, dedication to principle and dedication to the ideals of democracy and has made a significant lasting contribution to the nation, the state or the community in which the public servant lives or serves, which certainly, you have done. This is an amazing accomplishment. Certainly, I think all of us can see that. And we are so proud. The State Bar of Michigan has honored him with this prestigious award. Well done bill. So I threw in this not as rosy of a paragraph in here because I think it's important in the middle. This last week, we have our region has seen and been dealing with a stretch of volatile weather. You all know that our operations are weather affected, there's no doubt about it. High temperatures, strong winds, severe thunderstorms, some of us have personally experienced the devastation associated with this more than others. And it's been it's been pretty challenging for many, many of our of our residents. During this time, we experienced an unusually high number of momentary pressure fluctuations within the regional water transmission system, many of which were related to the weather. Fortunately, we were able to operate without significant impacts to the level of service that we provide our member partners. But this is always something we're watching for because we are very power dependent. Needs presentation was good director Brown, you were really clear. When we when we started the resiliency efforts that this report didn't need to sit on the shelf. And director Baker, you made the same comment that thank you for this. We report every single quarter Naveed team and the team that he put on that screen has been doing a great job. These are the times that test our ability to be resilient and we stood up the resiliency team as well. So I just thought it was important to note it, I had noticed it as I was watching what the system was doing in the last week or so. So pretty significant, happy that we were able to weather it without without events. So on to at the recent American Water Works Association Cheryl Porter, our chief operating officer water and Field Services was elevated to the president of the American Water Works Association. As you may know, Cheryl is the first out
so just wait till we got laughs right. We're gonna keep going. We got we got a lot to do here and unpack but well done. And we try every chance we can to let as many people know about this achievement as we can share, it was the first African American and the first woman of color to achieve this position. And this group's 143 year history. Very significant. And I can't tell you how proud I was to be there and witness the official gavel passing that marked her rise to this perceived prestigious position. It is without a doubt one of my proudest moments here at GL WA, to see her walk across that stage. I am certain that Cheryl will do great things as president not only for the water sector, but but for GL WA and for our member partners. And I know that director Brown has some additional statements to talk about Cheryl at this time.
Trouble
and some of this is going to be redundant, but I'm going to repeat it anyway. And you know, when I was I was on a Detroit City Council, so when you do these, these testimony or resolutions, they become a part of the city's archives, it becomes a part of the history so that 100 years from now, in case it's normal, that you won't be the first and when it's normal, people can go back and look and see. See what happened. So when I told the city council about these accomplishments, they were really fighting over who would sponsor the resolution because they want you to come before city council and take credit for what you're number one, you're a Detroiter, which raises the level with the City Council expeditiously. So let me say this is the Detroit City Council testimonio resolution to Miss Cheryl order was a member for many years of the Detroit water and sewer department, Board of Water commissioners. Whereas Michelle Porter has an extensive educational background holding a Bachelor of Science in chemistry from the University of Michigan, a juris doctorate from the University of Detroit law school, and an MBA from Madonna. Whereas Miss Porter is acting chief operating officer of the Great Lakes Water Authority GL WA, that's not acting anymore, whereas Miss Porter has maintained a prestigious career, overseeing five water treatment facilities and water transmissions to the Great Lakes water authorities member partner communities. And whereas Miss Porter has been an active member of the American Water Works Association since 2005, serving as a WWE a vice president and a WWE a finance committee member. Whereas aw WA is the water sectors oldest professional organization in the United States of America. Aw WA. Its mission is to provide solutions to effectively manage water, the world's most vital resource and whereas Miss Porter has been selected as the next president elect of the American Water Works Association and will be the first African American person and first woman of color to hold this the scheme physician and whereas Miss borders seeks to focus her leadership tenure on the community, protecting public health, safety and environment care, supporting my water sector colleagues through the high rate of challenges we all face and commitment, collaborating to make a difference through innovation and advancement and whereas this porter will begin her term As the American Water Works Association President Elect in June of 2024, we know that's already taking place at the conclusion, a WWE A's annual conference and exposition. Now therefore be it resolved. That council member of Red Deer Howell, the third and members of the Detroit City Council take great pleasure in honoring Michelle border for outstanding professional accomplishments, or commitment, stellar achievements, and excellence in leadership. Thank you for your exemplary service. And we wish you well and pray that God will continue to bless you.
So we will continue to talk about this for some time. Cheryl was president elect for a year she is now the president. And she will be then past president for a year. So we've got lots of good opportunities to talk about this amazing, amazing accomplishment. So I myself am going to walk up to the podium, because there are a lot of people I want to recognize today. I know we recognize bill, outstanding show outstanding, and we have a bunch of other outstanding things. So I'm going to take my time. Director Hendricks had told me take your time. So there's a lot going on. And I'm gonna do that right now. So let me just move over there.
Okay, so I am going to start folk with a focus on the operational side. So at the recent conference that we just talked about the AW wa conference, our Lake Huron Water Treatment Plant received the Partnership for safe waters, President's Award for water treatment, and our waterworks Park Treatment Plant received a five year director's award for water treatment. So I want to I want to bring up a few people from our water operations. Our plant manager Chris theory, this is Lake Huron, water treatment plants manager, Andre Savage, our waterworks Park plant treatment manager, and Ronald Hayes, who is our Director of water operations. These gentlemen certainly represent teams of people. So I just want to make sure that we get everybody here. So we're getting some good pictures, which is great, I want to congratulate you your collective efforts to provide water of unquestionable quality to our member partner communities. So I think it's just an amazing accomplishment. I think that it's important to note, these are national awards. And our people are just doing an absolutely outstanding job leading their teams providing water of unquestionable quality. So these are people and Cheryl's down through to Cheryl's area, and you can see the excellence is at every level. So well done, gentlemen.
Thank you very much. I'm glad you guys could be here. Okay, so also in the operations vein, and while we were at the conference, deal, who was named the water Research Foundation's 2024 subscriber of the year, this is in the research area of research and innovation. And I really want to call out and they couldn't be here today, in person. But Dr. John Norton is our director of research innovation in his team. It's a very small team, but a very mighty team. And they do an excellent job until WA is absolutely committed to making sure that we're at the forefront, right, it's important for us on water is important as water is for us to be always looking ahead and not not really just reacting to things but actually projected what's going to come forward. So this award honors assists subscribing utilities that have made notable improvements to their treatment, delivery and or management processes through the successful application of water Research Foundation project. So I was I was really happy to receive this award when we were out there. And one of the things that the director of the water Research Foundation said Is he said Sue, this was an easy choice this year. GL WA is certainly making big strides in what we're doing with research and it's very important that we do that. So well done. I'd like to give a round of applause even though it couldn't be to our to our research and innovations.
Okay, so now I'm gonna switch over to our administrative side with our organizational development group. And you might have noticed we have a number of guests that have filled the gallery today, many of them in our od team, and Jordi Kramer, would you come up and stand here with me and N od team members?
Would you please come up here as well?
Fill out the area here. All right. Organizational Development OD. So
our organizational development group sometimes people call this HR right human resources. The term the term that we use is organizational development a little bit broader than that 30 Kramer's, our chief of organizational development. And this team recently received two recognitions that I think are important to share. First, OD was selected by Crain's Detroit business, as its HR Team of the Year, pretty prestigious award team. And it takes a team to do that. So let's start with just applause there for the team. So Geordi likes to say that she and her team are working to put JL wa on the map and as an employer of choice in Southeast Michigan. That's their, their model that they use. And I think this award is a proof point that you guys are doing exactly that. So thank you for that. Secondly, the National Association for Business resources like the GL WA, as one of its first round of Michigan's best and brightest in wellness. The Wellness winning commute companies is what they call it, which are companies that provide employee health well being and workplace culture. And so this is a really strong focus of ours. We know that our people are the lifeblood of the organization, we spend a lot of time talking about kind of tricks associated with equipment, but the reality is the people are the ones that are keep it running. So the fact that we are focused and noticed in your team is actually bringing us on the map and wellness is really significant as well. So thank you all very much. Let's give him one more round of applause.
Well, that's my picture
I was gonna do names, but we've got a lot here. So we'll wait.
Okay, there it is.
Okay, so so I'm not done.
We got one more group.
We got it as od steps out. The last group that I want to acknowledge can't be here, because they are setting up over at the East Lake Baptist Church for that meeting that we've got that Naveen talked about. And that is our public affairs team. So Michelle, would you come up and just stand next to me for a minute while I while I while I recognize you and your team, thank you. So the National Academy of Television Arts and Sciences Michigan chapter has presented JL ws public affairs team with its second consecutive
me deal.
So GL wa one, the branded content category for the tap in recruitment campaign. You all have seen this, we've been advertising this. It's spectacular. We beat out five other nominees, including the likes of Henry Ford Health and the Detroit Lions. So how about that?
How about that?
I really want to state very specifically, people, right, so I brought Michelle's radowsky. Up here, she's the chief, also Curtis Burse. White, he you know, Stephanie burns, Jason Matthews, Brett McDonald, and the rest of the public affairs team, because it really took a team in I want to say a couple things about this, because I think it's really important because the focus was recruitment. And we all know that we have challenges in let's let's recruit lots of retirements, right? We have vacancies, let's fill those. But in, in my mind, that campaign helped on two fronts. First, it raised our profile as an organization and an employer, no doubt about that. Great, great statistics, we've seen that. But perhaps most importantly, it showed our team how important they are, and the value they bring to our organization. So one of the things that it did was it was so authentically done. And it represented the character of our workers, that it really helped our workers to see how much we value them. By putting effort into this, right? We didn't just do something that was, you know, me sitting at a desk or something, right? This was the people actually doing the work. And it allowed them to see how much we value them. And say, You know what, this is the kind of job right? This is the kind of job you can have, if you come here, look at these people. Right? So it was really, really significant. I don't think going in we thought it was going to do that. But the good work that your team did and how authentic it was, and then representing our team members, really was significant. So thank you, Michelle, and thank you to that team. One more round of applause for the claim.
Okay, so you contests. Oh, that's, that's, that's a lot, isn't it? Right, I was gonna say that's all. But I mean, pretty amazing. I'm so pleased to see. I mean, we know the good work. And we know the talent. We talk all the time about our talent. But it's nice to see external validation of that work. And y'all are just doing such a good chapter, just knocking it out of the park. So I appreciate you all. I hope that you feel that. And I'm just beaming with pride to be able to stand here in front of you and talk about all these good things that our team members are doing. So with that, I'm concluding my report.
Very nice. Well, one of the better SEO reports that gratulations to everyone truly, that is quite an accomplishment. In Me, new president a. Would you call it a PFD award? Very nice. All right. Are there any questions, comments or motion receiving file? For one favor? Hi, you're good. Thank you, Suzanne. Bill, you have one other matter?
I do. Mr. Chairman, I wanted to let the board know now that in all likelihood, we are going to ask you to meet twice in October, both on the ninth and then on the 23rd of October. And on the ninth what we intend to do is, is revisit the the finance presentation, as we did last year as sort of a kickoff of our budget season. And that will be that meeting will be focused solely or predominantly on that one.
Okay, very good. Anything else?
Nope.
That's it. All right. We have a clue. First closed session, Bill.
Thank you, Mr. Chairman, William Wilson, Deputy CEO. Mr. Chairman, the Open Meetings Act allows a public body to meet in closed session to discuss settlement or strategy and pending litigation, if and only if A public disclosure or discussion of that litigating or settlement position would have a detrimental effect on the public body's position. Mr. Chairman, I have reviewed the matter of DWSD versus Highland Park and DWR. A versus Highland Park and associated litigation with our general counsel team. It is our opinion that a public discussion of this litigation would have a detrimental effect on the settlement or litigating position of this utility. And for that reason, I would ask for the opportunity to meet with you in closed session and note that there is a two thirds affirmative roll call attached.
All right, very good. Is there a motion to go into closed session?
So moved the board?
Roll call please. sheperson
Baker, VICE CHAIRPERSON Miller, Secretary sec. Director brown director Hendra Yes, Director Clapper, Rosie.
Okay. And we do plan to come back after this and open session or an item. So with that we're in closed.
