Finance Committee

The agenda for today’s meeting can be found via the link provided below👇🏼

https://dwsd.legistar.com/View.ashx?M=A&ID=828492&GUID=D068BF52-2CB0-47B6-8BA4-5B18B430E8BC

To join the @DWSD Finance Committee meeting online, visit https://cityofdetroit.zoom.us/j/81572635118. Passcode: 482262021.

A brief delay in meeting start time after a quorum was not initially present. A quorum is present at 1:03pm and the meeting has started.

There is a “walk-on” item (G) being added to today’s agenda that was approved.

We are moving into public comment.

The first public comment is Ms. Walker. Her concerns are related to the website posting meetings ahead of time. She did not see today’s meeting on the calendar yesterday.

Ms. Walker also addresses rate decreases and the residents who do not fall under requirements for CARES Act Relief.

Director Brown assured they would look into the issue of posting meetings in a reasonable time frame, prior to meetings. He also advised Ms. Walker that he is not aware of CARES Act being distributed so it’s not clear what funding she referenced.

The 2nd comment offered support for Hydrate Detroit, payment relief and further addressed concerns over water being shut off. Director Brown reassured the public that water is not being shut off right now & making sure Detroit resident’s have access to water is their top priority

The 3rd comment, Ms. Renee, touched on the human rights of having access to water. She supports water shut-offs being paused and payment relief. Director Brown says that DWSD agrees with her.

Director Brown urges the public to contact DWSD if they do not have water in their home so they can make sure it gets turned on and/or issues are appropriately addressed.

The 4th comment discussed the need for funding and the importance of DWSD putting forth the effort to secure what’s necessary for Detroit Residents. Director Brown reassured him that they are actively looking for grants to help @DetroitWaterDep customers.

5th public comment also addressed the importance of funding and relief efforts. Director Brown said that their efforts extend beyond just paying water bills for those in-need, it also extends into funding for repairs and long-term resolutions.

The next 4 public comments were not present to do so.

The last public comment is written. They offered support for @Water4Detroit and ensuring there’s payment relief and other support for Detroit residents.

This concludes public comment.

The communications items on today’s agenda include correspondence regarding the following:

1. April 2021 Contracts, Purchase Orders & Solicitations
2. Quarterly Litigation Report for Q2-FY2021
3. Purchase Order Authorization Thresholds

A motion to receive and file all 3 communications items is approved.

No unfinished business. And we’re onto New Business items.

The first item is a Lease of property located at 17161 Mack Ave., Detroit, MI to Laethem Automotive. Details are highlighted in yellow. https://t.co/wtybhwDEvc

The motion regarding the lease for the Mack Ave. property is approved.

The next item is an amendment to an existing contract using Sourcewell’s contract with Johnson Controls, Inc. and is for the purpose of HVAC Equipment, repairs and service. This is approved.

Next item is a new contract with Tri-County International Truck, Inc. to furnish parts & repair services for @DetroitWaterDep’s heavy duty trucks. This is a $250K contract for a 5-year term.

The company is the only one of it’s kind within 50-miles of Detroit. It’s conditional on the company obtaining the clearances to provide the contracted services. https://t.co/Ze0a1Z7W9a

The motion is approved for the new contract with Tri-County International Truck, Inc.

We are on New Business Item D. This is a 2nd Amendment to an existing contract with AIS Construction Equipment for continued repairs, parts & maintenance of John Deere equipment. The motion is approved.

The next item (E) is also for AIS Construction Equipment. This is a new contract that essentially extends the existing contract for John Deere repairs, parts and maintenance. This is approved.

Item F is a new DWSD Contract using Omnia Partners Cooperative Contract with Oracle America, Inc. dba Mythics Inc. for ongoing maintenance of Oracle Cloud licenses. The total contract amount is $4.2 million for a term of 2.5 years.

Director Brown mentions challenges Oracle faces with finding qualified applicants who live in Detroit to fill positions with Oracle. He emphasizes a need for access to opportunities for Detroiters.

The motion is approved for New Business Item (F) regarding a contract with Oracle for maintenance of Oracle Cloud licenses.

Item (G) is a new DWSD contract with Bill Jones Enterprise, Inc. dba Metro Airport Trucks to provide parts, maintenance and repairs services for Cummins Engines, Crane Carriers, Trucks & Autocar Trucks for $250K over a 5-year term.

This is approved.

We are now on to the walk-on item. Details aren’t on the agenda but can be viewed below. 👇🏼 https://t.co/C5xuIe9TZT

https://twitter.com/kayleighrenel/status/1379856726980198402

We are now onto Item H(now “I”).

This is a Water and Sewer Rate Review. This provides an outlook for FY 2022 water rates.

Among revenue increases, penalties and fees will increase by over 5%. This includes late fees and water-shut offs.

Commissioner Kinloch offered his support for the increases and says he believes these are reasonable. https://t.co/2AlCwwAi6U

Regarding draining service fees, penalties and fees are expected to increase 22.5%.

The Average Monthly Residential Bill is expected to increase in 2022 by $2.32. https://t.co/hzNRpWB12z

Mr. Rice, presenting this information, says that these rate changes are based on the volume decreases they’ve seen.

The motion to receive and file the Water and Sewer Rate Review for FY2022 is approved.

There will be a public hearing at the end of the month regarding rate reviews.

No additional information or details is provided by the Board of Water Commissioners.

The final item under New Business is a Finance Presentation for April 2021, presented by Michael Huber.

The presentation details the financial position for February 2021(not April) https://t.co/VBAKLJKz4b

There are 152 vacancies in personnel, which contributes $11.6 million in savings.

There was a 27.9% decrease in retail receipts and a 11.8% volume decrease in February 2021. https://t.co/RceWGuVX7y

Sewer collection rates was down 14.6% in February 2021 and volume was down 17%. https://t.co/RI36DM690f

Mr. Huber referred to the bottom right graph as he expressed the importance of payment relief programs and the impact residential customer payments have on DWSD’s revenue. https://t.co/7AfnryIB8b

Mr. Huber’s presentation has concluded. The Planning Calendar is approved, noting the next Committee meeting is May 5, 2021.

There was a public commenter who chimed in prior to adjournment. They said they submitted their information prior to 1:00PM but were skipped. They were cut off for an unknown reason, possibly disconnected.