DWSD goes over contracts, collections from residential customers, and budget performance
Good afternoon. I’ll be live-tweeting today’s @DetroitWaterDep Finance Committee meeting for #DetroitDocumenters. The meeting is being held on Zoom, and begins at 1:45pm. @WDET @CitizenDetroit @Detour_Detroit @media_outlier
11:10 AM Mar 3, 2021 CST
Meeting details, documents and instructions on how to join this meeting can be found at https://dwsd.legistar.com/MeetingDetail.aspx?ID=828490&GUID=AC0A5D19-F4DC-4AEA-BFF9-CBC2F76891B0&Options=info|&Search=
And the agenda can be downloaded here: https://dwsd.legistar.com/View.ashx?M=A&ID=828490&GUID=AC0A5D19-F4DC-4AEA-BFF9-CBC2F76891B0
The Detroit Board of Water Commissioners combines all four of its committees into one meeting. Today’s meeting began at 1pm and is currently underway if anyone would like to join now. Finance is still scheduled to begin at 1:45pm.
Only commissioners and presenters are full meeting participants. The rest of us can join as members of a webinar. Basically view only. All requests for public comment had to be submitted prior to the meeting commencing at 1pm.
While the Finance Committee should be meeting now, the DWSD only scheduled 15 minutes for each committee and the PR Committee took 48 minutes. They have currently moved on to the Customer Service Committee. This meeting is running very late.
Correction: That was the HR Committee that ran overtime. At 2:15pm we have now moved on to the Capital Improvement Program and Operations Committee.
Finance Committee is beginning now. Commissioners Einheuser, Coleman, Forte and Kinloch all in attendance. Agenda and Minutes all approved, no public comments.
On to new business. The first item of new business is a contract with MDOT, serving as payment for a damaged traffic signal. DWSD has requested that MDOT repair it, but the damage was due to a water main leak, so it was DWSD’s fault.
The traffic signal is located on the SW corner of Fort St and Griswold. Estimated repair cost is $37,000.
Several commissioners joked that apparently a lot of contracts are approved in the amount of $37k. ?? https://t.co/cInXyGyghR
Next up is a contract with Mort Crim Communications, Inc. to provide DWSD with public relations and communication services. Not-to-exceed $1,399,616 over two years.
This was competitively bid. MCCI states on their website that their goal with DWSD is building “A human brand”. Examples of their work can be found here: https://mccicorp.com/work/detroit-water-and-sewerage-department/
The motion was approved. Discussion has moved on to a contract with Power Lighting & Technical Services to provide as-needed electrical services for Facility Operations. Not to exceed $200k over 2 years.
They are a Detroit-based business and this was competitively bid. Ericka Meah-Williams commented that Detroit has worked with them for several years and is happy with them. They get all the work done. Motion approved.
This contract also has a piggyback contract attached which adds another $1,340,000 over 21 months. This specific contract covers needs of three departments, and relates to the LED project. Commissioner Blackmon questioned “piggybacking” a contract.
It was answered that this avoids having to offer another new competitive bid for further work. No other questions were asked. Motion was approved.
Final item of new business is a contract with McGard LLC to provide DWSD specific hydrant locks, wrenches and keys. $450,000 over five years.
Illegally-tapped fire hydrants have been an issue in Detroit for years. https://detroit.cbslocal.com/2012/07/28/illegally-tapped-fire-hydrants-on-rise-in-detroit/
There are issues with vendors being delayed in getting tax clearances and this is throwing cogs in the process of contracting with vendors, who are at the mercy of the state to provide them clearances. The motion was approved.
Numbers are approaching a positive cash flow on the sewer side with steady growth of sewer meters, but they aren’t there yet. Revenues on water are trending below-budget.
$330K approved for Baker Tilly Invoices which lacked purchase orders. This began with a typo in number of years in their original contract, and they ended up working for DWSD without a contract. (it had expired)
Debra Pospiech took responsibility for telling them to continue working after the contract had lapsed. They have been continuing work without a paycheck since then. They have tax issues to clear up, but are waiting on the state for clearance.
Commissioner Coleman is expressing further frustration with the delays in the State of Michigan providing tax clearances. Pospiech says the BOWC has the authority to go ahead and pay them for services rendered, and the commissioners seem to all support this.
Pospiech recommends that DWSD make payment contingent on the clearance being issued. That is the motion on the floor. Gary Brown would rather pay them now as DWSD is sitting on a great deal of cash, and most vendors can’t afford to wait.
They’ve decided to waive the contingency and make this payment immediately. As this was the result of a rare typo, they don’t believe this will set a precedent. Motion approved with none opposed.
There are no other issues before the Committee. Meeting adjourned at 3:25pm. There were 17 commissioners, staff and presenters on this Zoom meeting, and another 32 attendees viewing it as a webinar.
This meeting flowed directly into a full Board of Water Commissioners meeting. In all four committee meetings and the full BOWC meeting, there were no public comments. (requests for comment had to be made prior to 1pm in order to be approved)