OFFICIAL PROCEEDINGS OF THE ST. CLAIR RIVER

SEWER AND WATER AUTHORITY

March 1, 2005

The Regular Meeting of the St. Clair River Sewer and Water Authority was called to order at 7:00 p.m., March 1, 2005, by Chair Donald Beaudua at the St. Clair River Water Treatment Plant, 5111 Pointe Drive, East China, Michigan.

PRESENT: Chair Donald Beaudua, Vice-Chair Robert Allen, Secretary/Treasurer Sharon McCulloch, and Members Stuart Bogue and Ralph Knotts. Also present were: Sewer Plant Supt. Dion Pike, Water Plant Supt. Michael McLeod, Engr. Brian Slizewski of Wade-Trim, and Larry Allen of Stewart, Beauvais & Whipple, PC.

MINUTES: Motion to approve the minutes of the April 13, 2004 meeting was made by Allen, supported by Bogue and carried with all ayes.

NEW BUSINESS:

Chair Beaudua introduced and welcomed new member, Ralph Knotts, who has been appointed to fill the unexpired term of John Grabski who recently resigned. Mr. Knotts had previously served as the East China Township Board Alternate to the Authority.

Received a letter of resignation from John Grabski, dated 12/17/04 with regrets. Mr. Grabski had served on the Authority since September 1988 and was resigning due to his new work schedule. A letter of appreciation will be sent.

Election of Officers for 2005: A motion was made by Bogue to cast an unanimous ballot in order to retain the present officers for another year. Supported by Knotts, and carried with all ayes. The retained officers for 2005 are: Chair - Donald Beaudua, Vice-Chair - Robert Allen, and Secretary/Treasurer - Sharon McCulloch.

Proposal for 2004 Audit: Received letter of January 17, 2005 from Stewart, Beauvais & Whipple, P.C., outlining a proposal to conduct the annual audit for the year ended December 31, 2004 in the amount of $4,600.00. Larry Allen of SB&W noted that in the past, the proposal to do the Authority’s audit had been included in East China Township’s contract, but now, due to GASB 34 regulations, he felt it warranted a separate contract. The cost had always been figured and billed separately in prior years. Knotts had questions on the attached external peer review report from Burnside & Lang, PC. Mr. Allen explained that the findings in the letter did not pertain to any audits of East China’s, but if it had been chosen, Larry would notify the Township that it had been selected for the process. McCulloch noted that in the past the cost would be split evenly between the Water and the Sewer Authority funds, so each fund would be billed at $2,300., and Larry agreed that this is how it should be divided. Motion to accept the proposal of Stewart, Beauvais & Whipple to conduct the 2004 audit for the St. Clair River Sewer and Water Authority in the amount of $4,600. was made by McCulloch, and supported by Bogue. Roll call vote: Ayes: McCulloch, Knotts, Allen, Bogue, and Beaudua. Nays: None. Motion carried.

Water and Sewage Rate Analysis: Larry Allen of Stewart, Beauvais & Whipple, addressed the Authority in order to explain the relationship between the Authority and the Charter Townships of China and East China. He want to specifically explain the correlation between the Authority’s budgets and the fact that the two Townships must cover the expenditures through the establishment of the water and sewer rates to their own customers. He passed out work sheets outlining percentages of operations between the three entities. He noted that whatever the Authority spends gets divided between the two Townships based on these estimated percentages. Also used are the actual flow usages and actual expenditures for the water and sewer plants, and costs are calculated based on the percentage of water lines in each township and lines that are shared by both. Each township’s monthly billing is therefore only an estimate. When the annual audit is conducted, calculations are done based on actual flows so the Authority comes out even, and the Townships are either billed additional or credited. Mr. Allen also mentioned he has noticed that

in the last few years it seems that water consumption has decreased for the majority of his clients, so therefore revenues have dropped, often making it necessary to raise the rates just to cover increased costs of running the plants. There was discussion with Supt. McLeod regarding the large amount of unaccounted water usage this year which could be related to leaks. He is working with the DPW to have them report any large leaks or notify him when they are flushing hydrants so he can keep better track of the unmetered water for his records. Knotts felt we should try to find a way to increase water usage in order to gain additional revenue. Auditor Allen had questions regarding how water meters gauge usage and if this could result in the loss of water being metered. Bogue responded that as meters get older they read less accurately and should be replaced about every 10 years. He also explained the difference between 5/8" and 1" meters and when they should be used. Chair Beaudua thanked Mr. Allen for his presentation.

Revenue and Expenditure Reports for November 2004: McCulloch reported that the Amended Budget figures won’t be adjusted until the December report, so a few line items are still showing deficits and that the audit for the year 2004 will take place shortly. Knotts had questions on the DPW Labor & Equipment Charges in the Water Fund. Larry Allen explained the difference between the Sewer and Water funds and how they are billed based on ownership of lines and the plants. Motion to accept the Revenue and Expenditure report for November 2004 as presented was made by Bogue, supported by Knotts, and carried with all ayes.

Replacement Fund Balances thru Dec. 31, 2004: The balance in the Sewer Plant Replacement Fund is reported at $261,187.49, while the Water Plant Replacement Fund is at $29,100.00 and the Water Plant Module Replacement Fund is at $25,000.00 thru 12/31/04. Knotts had questions regarding the "Contribution to the Replacement Funds" on the financial reports in that the amounts are budgeted as expenditures but nothing is showing as being expended by year-end. Larry Allen and McCulloch explained that this is one way of putting funds away for the future. It is shown as an expenditure in order to ascertain the amounts the two Townships need to contribute as revenue in order to cover the amount required. Since it is not expended, the amounts will be carried over in the fund balance of the replacement funds. Motion to accept the Replacement Reports as submitted thru 12/31/04 was made by Knotts, supported by Allen, and carried with all ayes.

Proposed 2005 Budgets: a) Sewer Authority: The proposed total is $553,135. compared to $546,035. in 2004. Supt. Pike referred to the $500. budgeted for "Conferences/Workshops" and noted that several of the Sewer Plant operators will need to take courses in order to keep up their license, so this may need to be increased to about $1,000., possibly by combining the $500. budgeted for "Safety Training Programs" which seldom gets charged. McCulloch explained the attached calculation sheet which shows how she arrived at the amount each township will need to contribute each month in order to cover the budget based on the reserve capacity figures. East China will pay $34,147.45/mo. compared to the 2004 rate of $34,201.25/mo., while China Township will be billed at $6,120.00/mo. compared to the 2004 rate of $5,593.35/mo. This is also based on the 2003 Audit percentage rate as calculated by Stewart, Beauvais &Whipple using actual sewage flows. The percentages are: East China - 93.19% and China - 6.81%. Larry Allen explained the "Schedule of Sewer Services to Townships" in relation to how much the Detroit Edison Company pays due to the reserve capacity clause in the contract with the Townships as well as for actual usage. As mentioned earlier, he reported that each year this schedule is prepared to determine whether each township paid their correct share based on actual flows. Bogue asked what the "State of Michigan Fees" account covered. McCulloch explained that it is for payment to the State for the cost of permits, such as the NPDES Permit.

b) Water Authority: The proposed total 2005 budget is $685,370. compared to $670,020. in 2004. The portion of the budget for "DPW-Water Lines Repair & Maintenance" is proposed to be $106,250., while the amount budgeted for "Water Plant Operations" is $579,120. Supt. McLeod asked why the amount for "Professional Services" was budgeted at $2,500. for 2005, but was $9,000. in 2004. McCulloch explained that in 2004 the cost of the Vulnerability Assessment Report for $8,700. was included in this account, but it is not required again this year. Attached was a worksheet which showed the calculations to determine what each Township will need to contribute each month. These are also based on percentages prepared in the 2003 Audit. The "Line Maintenance" portion is based on the percentage of water lines in each township: East China - 78.40% and China - 21.60%. The "Plant Expenses" percentages are based on actual water flows: East China - 91.40% and China - 8.60%. There is no reserve capacity factor in the contracts for the water plant. Based on these calculations, the amount each Township will contribute each month is: East China - $50,846./mo. compared to the 2004 rate of $50,515./mo; China - $6,043.50/mo in 2005, compared to $5,237./mo in 2004.

A motion was made by Allen, supported by McCulloch, to adopt the proposed St. Clair River Sewer and Water Authority budgets for the year 2005 as presented with adjustments. Carried with all ayes.

A Resolution regarding sewage rates had been presented, but after a short discussion with Auditor Allen, it was determined that this was not necessary as the Sewer Authority does not set sewer rates and each Township adopts a different rate. Motion to delete Item #9 from the agenda, the above-mentioned Resolution, was made by Allen, supported by Bogue, and carried with all ayes.

Letter from Synagro, dated 1/05/05: Synagro is the company which hauls the sludge from the Sewage Plant and land-applies it to farms in the area. The letter informed us that they are requesting a Consumer Price Index adjustment, which is allowed in our contract, based on the difference of the Oct. 2003 and Oct. 2004 CPI. The rate is 1.0235, so the cost per gallon to remove the sludge for 2005 will go from $0.0430/gallon to $0.0440/gallon. Additional fees also will be increased by this percentage. There was discussion on the procedure for removing the sludge and that in 2004 the costs were much higher than expected. Supt. Pike stated that this year better controls will be in place during the hauling process which should be scheduled for late summer or early fall. There was discussion on the rate of $375.60/hr. which is only charged when the company does a complete cleaning of the tank after the sludge is totally removed. This is not done every year, but it may be scheduled this year so we can examine the interior of the tank for leaks or other possible repairs.

Supt. Pike’s Sewer Plant Updates: Pike went through the "Annual Sewage Treatment Plant Report for 2004". Chair Beaudua asked to have both the Annual Water and Sewer Reports sent to the Township Boards for their review since it contained excellent information. It was noted that the Sewage Plant pumped 240.206 million gals. of sewage, up 38.081 million gals. due to heavier rainfall. Pike mentioned problems with the Belle River lift station. There was discussion regarding problems with manholes and in maintaining a program of checking for leaks by smoking the sewers. In 2005, proposed maintenance and repair projects are: 1) inspect the primary and/or secondary digestor infrastructure; 2) replacement of the grit chamber; and 3) deal with infiltration problems due to spring thaws and heavy rainfall. The National Pollutant Discharge Elimination System Permit (NPDES) was renewed in 2004 and will be in effect until 2008. Knotts had questions on the chart in the report regarding "Total Phosphates".

Other items: 1) Pike reported that the one sampler which had been retrofitted in order to maintain the correct temperature has been working correctly for about three months. He would now like to have the two additional samplers done at a cost of $600. each. Bogue moved to authorize the upgrade to the two samplers at $600. each with funds coming out of "Repairs & Maintenance", supported by McCulloch. Carried with a roll call vote: Ayes: Bogue, Allen, McCulloch, Knotts, and Beaudua; Nays: None. 2) Reviewed quotes from RS Technical for replacement of the ferric chloride pump, pressure relief valves, and backpressure relief valves. There will also be costs for electrical installation. Pike explained that the present metering pump is the original pump and needs to be replaced. Part of the quotes were to either upgrade the old pressure relief valve and backpressure relief valve to the new style for $519.71, or buy the new style for $594.00. We would require two sets. There was discussion that it made more sense to purchase the new style instead of converting the valves. Knotts moved to accept Quote #CO-3440 from RS Technical Services, dated 1/13/2005, for a Wallace & Tiernan metering pump at $1739.00 and for two (2) sets of Items #3, 5 & 6: the PM valve kits for $109.45, backpressure valve for $273. and relief valve for $321., with the estimated cost for installation at $500. by Michigan Industrial Controls. The total cost is not to exceed $4,000. Supt. Pike is also to confirm that Item #2-pump base and Item #4-diaphragm kit, are not required. Motion was supported by Allen. Roll call vote: Ayes: Bogue, Allen, McCulloch, Knotts, and Beaudua; Nays: None. Motion carried. 3) Presented quote from iWarp/Network Computers LLC for Broadband Satellite Dish/Modem and installation for $299.99 with monthly internet charge of $49.99 for use at the Sewage Plant. The present dial-up system is very slow for printing forms and the Comcast cable doesn’t extend down Recor Road. There was discussion about other options, so Pike will wait until next meeting. 4) Due to the new mercury testing program required by the State, Pike had several sites tested which may be high contributors of mercury such as the Dentist Office in China, DTE, the Hospital, and Continental Coatings. He had hoped to have the results for tonight, but they weren’t ready. If the results are high in any location, the State says we may have to ask them to install an amalgam trap which may cost about $1,000. Pike had questioned what happens if the company said "no" to installing the trap and who would dispose of the mercury which gets collected. The State said that we may have to install it ourselves. Engr. Slizewski asked if the Township’s ordinance specifies if this type of discharge is allowed in our system. There was discussion regarding mercury being in dental fillings and that the Dentist’s Office will most likely have a high mercury level. Pike will update us on what needs to be done when the results of the testing are in at the next meeting. 5) Ventilation system for ferric chloride day tank and 6) Grit chamber replacement: Pike confirmed with Engr. Slizewski about having someone come in this week to determine what needs to be done and when these projects can begin.

7) Hiring new plant operator: Pike referred to the MI DEQ Deficiency Letter of Dec. 17, 2001, in which they recommend a staff of five (5) full time operators for the Sewage Plant. Presently there are only three operators besides the Superintendent, and when it was decided to split the two plants, the Sub-Committee had agreed that there should be four operators plus the Superintendent. Since the East China Township Board has the authority to hire personnel, Pike will approach them on this matter. 8) Supt. Pike informed the Authority that Operator Craig Harris, who had transferred from the DPW to the Sewage Plant, will not be eligible to write for his Wastewater License until May of 2006, as he doesn’t have the required 2,000 hours of experience in the Plant. He only has about 1,300 hours but Pike stated that he is doing very well in his duties and it shouldn’t be a problem. 9) There is a brown pick-up truck that is primarily used by Sewage Plant personnel, which requires about a $1,000. of work to keep it running safely, so Pike asked if we should put the money into it. There was discussion regarding whether the DPW should be responsible for any repairs since most equipment is purchased through their department. It was brought up that there should be some means of the Sewer Plant paying a rental fee to the DPW for the time equipment is used. Knotts suggested charging the water and sewer plants by the percentage it is used per year since the summer help use the vehicles in the summer months. Pike will approach the DPW Foreman regarding the repairs to the pick-up truck.

Supt. McLeod’s Water Plant Updates: 1) Annual Water Treatment Plant Report for 2004: The Plant treated 165.07 million gals. of water, down 1.23 million gals. from 2003 or a 1% decrease. After being replaced almost one year ago, he reported that the new membranes, plus the installation of the inline strainer, are doing an excellent job. There has not been a reoccurrence of failed MIT’s or leaking fibers. The Plant met all MIDEQ and USEPA drinking water requirements for 2004. The laboratory was inspected by the MIDEQ and received certification through May 27, 2007. Also included were a list of commercial water and sewer users as well as charts showing operation summaries, operating costs, and testing results. Supt. McLeod said he welcomed any suggestions for items that the Authority might like to see in this report for next year. 2) Update on painting water tanks: McLeod had inspection reports of the north and south tanks and reported that the south-end tank is due to be painted, while the north tank was done in 2000. He will get in contact with Engr. Slizewski to compare notes and to formulate a time-table. 3) There are cracks in the filter walls, but since it is not a critical situation, he’ll bring this up at a future meeting. 4) Supt. McLeod reported that the air compressors and air dryer needed emergency repairs done since water was getting in the dryer which could have caused major problems if it hadn’t been caught while doing a maintenance inspection. The parts and valve were ordered and installed. 5) Landscaping at Water Plant: Last summer there were very tall weeds coming up through the landscaping tarp and several dead shrubs around the Plant. In the future Mike would like to discuss this further in order to improve the landscaping problems by removing the existing stones, replacing the tarp and replacing the bushes. In reply to Chair Beaudua’s inquiry, McLeod reported that the new Water Plant Operator, Dwayne Loper, is working out very well.

Any Other Business: None.

There being no further business, Allen moved to adjourn at 9:48 p.m., supported by McCulloch. Carried with all ayes.

The next meeting is scheduled for April 19, 2005 at 7:00 p.m. at the Water Treatment Plant. (Date delayed one week per Bogue’s request.)

Donald K. Beaudua

Chair

Sharon M. McCulloch

Secretary/Treasurer

OFFICIAL PROCEEDINGS OF THE ST. CLAIR RIVER SEWER AND WATER AUTHORITY

April 19, 2005

The Regular Meeting of the St. Clair River Sewer and Water Authority was called to order at 7:00 p.m., April 19, 2005, by Chair Donald Beaudua at the St. Clair River Water Treatment Plant, 5111 Pointe Drive, East China, Michigan.

PRESENT: Chair Donald Beaudua, Vice-Chair Robert Allen, Secretary/Treasurer Sharon McCulloch, and Members Stuart Bogue and Ralph Knotts. Also present were Water Plant Supt. Michael McLeod,

Sewer Plant Supt. Dion Pike, and Engr. Brian Slizewski of Wade-Trim.

MINUTES: Motion to approve the minutes of the meetings of June 15, 2004 and August 10, 2004 as presented was made by Knotts, supported by Bogue, and carried with all ayes.

NEW BUSINESS:

Insurance Renewal Adjustments: Received Memo from East China Township Office Manager Sandra Smith, outlining suggested options for the renewal of the Authority’s insurance policy through Burnham & Flower Agency. The period covered is June 1, 2005 thru June 1, 2006, and includes property coverage, wrongful acts, liability and inland marine. The suggested deductibles amounted to a savings of $6,000. There was discussion regarding inland marine coverage and whether it would be better to have the replacement coverage instead of the suggested ACV (actual cash value) coverage. The difference between the two coverages was about $470. Knotts made a motion to renew the annual Insurance Policy through Burnham & Flower Agency with the following options: property deductible @ $5,000., wrongful acts deductible @ $10,000., liability limit @ $3,000,000., and inland marine coverage @ replacement cost with $1,000. deductible. Motion supported by Allen and carried with a roll call vote: Ayes: Allen, Bogue, Knotts, McCulloch, and Beaudua. Nays: None.

Revenue and Expenditure Reports for December 2004 and January 2005: Reviewed the financial reports as presented. Beaudua had questions on the Sewer Authority report for January, "State of Michigan Fees" because the percentage of the budget used was already at 99.2%. McCulloch explained that this account is for the various permit fees due to the State and that we have already paid $4,464.70 which included the NPDES Fee. This should be all that are due in 2005. Knotts had questions on the "net effect" on the December report for the Water Authority as it was $135,075. and it seemed like we had overcharged the Townships for the year. McCulloch noted that the annual 2004 audit is now being conducted, and that this amount includes funds to be reserved for the replacement funds. The auditors will determine if the Townships paid their fair share based on actual flows and if there were overcharges, they will be credited on their next monthly billing. Motion by Bogue, supported by McCulloch, to accept the Revenue and Expenditure Reports as presented. Carried with all ayes.

Replacement Fund Balances thru April 4, 2005: It was reported that the balance in the Sewer Plant Replacement Fund is $269,981.14, while the Water Plant Replacement Fund is at $34,099.97, and the Water Plant Module Replacement Fund is at $31,250.03 thru 04/04/05. Motion to accept the Replacement Fund Reports as submitted was made by Allen, supported by Knotts, and carried with all ayes.

SEMCOG 2005 Designated Management Agency Service Fee: Received Memo from SEMCOG dated March 7, 2005 and billing for the annual DMA service fee for 2005 in the amount of $165.00. This had been tabled by the East China Township Board and forwarded to the Authority. Chair Beaudua has been doing a lot of research as to the origin of the original agreement and billing which came into play in 1978, when it had been presented as a township resolution. At that time, East China belonged to SEMCOG and was in the process of trying to obtain grants in order to construct the new wastewater treatment, and SEMCOG did assist in this respect. He has been questioning why we are still getting billed annually for this since East China no longer belongs to SEMCOG and whether China Township, who is also an owner of the Sewage Plant, receives a billing each year. McCulloch related that at least for the last two years, the funds to pay this bill had come from the Authority funds, so in that respect, China has been paying a portion. Beaudua suggested that we look into having a new resolution or contract drafted in the name of the Authority instead of with East China Township. The packet of information supplied with the invoice included the formula used to figure the amount billed which is based on our 2003 wastewater flow. McCulloch asked Supt. Pike if he recalls if he had supplied them with this figure of 27,022,059 cubic feet. Pike replied that the Sewage Plant supplies this information each year and is a total of all flows at the Plant. Beaudua asked if each township’s flow could be broken out, to which Pike replied that it could be done. Beaudua also felt that if a new agreement is written, it should stipulate a definite time limit, since the present one seems to be never-ending. There was discussion as to what SEMCOG actually does for the communities who belong to it, the best way to get a new agreement or resolution drafted in the Authority’s name, an equitable cost determination for each township, and for what time frame it should cover. Engr. Slizewski suggested that a 3-5 year time frame be set after which we would ask that SEMCOG supply us with evidence of the services it is providing so we could evaluate whether we would renew the agreement. Chair Beaudua will draft a letter to SEMCOG in the near future to incorporate these suggestions.

Engr. Brian Slizewski related information about SEMCOG in which he was involved. When we were trying to obtain financing for the new Water Filtration Plant construction, SEMCOG, who is our regional planning system, had advised the Drinking Water Revolving Fund Board that our proposed facility was being oversized and was not just meeting an existing need. In fact, the plant was being sized to accepted engineering practices and luckily the DEQ and financing board ignored their comments. After hearing this, Knotts commented to Beaudua that he will no longer support belonging to SEMCOG either.

Knotts made a motion, that with all the explanations notwithstanding, we pay the SEMCOG Designated Management Agency Service Fee in the amount of $165.00 for the year 2005, from the Water Authority funds, supported by Bogue. Roll call vote: Ayes: Allen, Bogue, Knotts, McCulloch, and Beaudua. Nays: None. Carried.

Supt. McLeod’s Water Plant Updates: 1) Painting of south-end water tower. Supt. McLeod and Engr. Slizewski have started the process in motion by contacting Dixon Engineering who would provide the technical specifications and perform the inspections on the 500,000 gal. elevated water tower on Springborn Road. There was discussion on whether the Authority or East China Township would be in control of the project. By definition in our Water Transmission Facilities and Operation Maintenance Agreement, a tower is a "facility". The Authority is responsible for its operation and maintenance, but the Township Boards would have to authorize the costs for said maintenance as it is a capital expenditure. Bogue asked when the this tower had been last painted. Beaudua replied that when it was constructed, in 1992 or 1993. Engr. Slizewski passed out a "Proposed Project Budget" which he had estimated based on costs for painting the north-end tower. The cost was $292,300. for the interior and exterior painting and outlined how much would be paid to each company involved. In reply to Beaudua’s questions regarding the process involved, McLeod reported that he has been in contact with the DEQ to determine which method to use for the flushing, testing, etc., when the painting is completed. Bogue had concerns regarding the inspections and wants to make sure that the thickness of the paint applied is verified. There was additional discussion on who should sign the documents, etc., as well as what kind of lettering will be painted on the outside of the tank. East China has been setting aside funds the last two years to cover this expense in the amount of $150,000., with the intent to bill China Township for 10% of the costs which was past practice when the north-end tower was painted. Engr. Slizewski asked, that in order to get the process started, the Authority authorize funds to be paid to Wade-Trim to prepare the construction documents, and to Dixon Engineering to prepare the painting specifications. McCulloch wanted it clarified that these funds were not coming out of the Authority’s budget, but from Township funds. The two Township Boards will be notified of the estimated costs. Bogue made a motion that the St. Clair River Sewer and Water Authority authorize $5,000. for Wade-Trim Associates to prepare the construction documents and $3,000. for Dixon Engineering to prepare the painting specifications to paint the interior and exterior of the 500,000 gallon elevated south-end water tower. Supported by Knotts. Roll call vote: Ayes: Allen, Bogue, Beaudua, McCulloch, and Knotts. Nays: None. Carried. The work should take about a month to complete once started.

2) ZenoTrac Process Summary Report: 8/1/04 - 2/01/05: McLeod passed out copies of the latest report which outlines the Water Plant’s performance. This is a software program from ZENON which has been online since the spring of 2001 and aids in troubleshooting and monitoring the plant’s performance. If we want to get this report on a regular basis, we can let Mike know. 3) GIS Phase II: Wade-Trim has been working on the GIS system for the last few years. The program is a mapping system outlining the Township’s water and sewer infrastructure. Laminated prints of some of the maps were presented. This information will be very beneficial for the DPW in locating lines to make repairs. 4) Uninterruptable Power Supply for Computers: McLeod had the electrician check the UPS when there was trouble with the alarm system. This system runs every computer in the Water Plant. There are 20 batteries, with a 3-5 yr. life span, now on the 4^th year. He found that a few batteries are dead, so McLeod would like authorization to purchase all new batteries at $75.00 each, or a total of $1,500.00. There may also be an installation fee from Michigan Industrial Controls. Knotts moved to replace the 20 batteries in the UPS at a cost of $1,500.00 plus reasonable labor costs, supported by McCulloch and carried on a roll call vote: Ayes: Allen, Bogue, Knotts, McCulloch, and Beaudua. Nays: None. 5) Problems with ZenoTrac Modem: McLeod reported that the ZenoTrac program hasn’t been running correctly since January. ZENON had two programmers come to our Plant to install updates, and after that the downloads we send to ZENON are not going through correctly to the ZenoTrac system. They claim it is a modem problem and for $700. they will supply one and program it. Mike feels that since the problem occurred after ZENON people worked on the system, that it should be their cost. He’ll look into it further and report back next meeting.

Supt. Pike’s Sewer Plant Updates: 1) a) Pike had contacted Ben Stewart at Synagro regarding their hourly rates per discussion at the last meeting. He confirmed that the hourly rate is only charged in the years when the digester is taken all the way down for a thorough cleaning. b) In regard to the mercury testing program, four sites other than the Sewer Plant were tested: the Hospital, DTE Plant, Continental Coatings, and the Dentist Office in China Township. The only one with a high mercury count was the Dentist Office, which had been expected. Other than that, the State said that our results looked good. After one year, if we can show that we are staying under the limits, we may be able to go from monthly testings to either quarterly or semi-annually. c) The ferric pump has been installed except for the wiring which should be completed within the week. d) Supt. Pike and DPW Foreman, Roger Malcolm, have been looking at companies to stop the leakage in some of the manholes. There are some hair-line cracks which may be repaired by either a relining process or spraying technique. Pike will try to obtain prices. McCulloch noted that this expense would be come out of the Township’s Sewer Fund, not the Authority, since it outside of the plant. e) Grit Chamber: Pike asked Brian Slizewski if he had any information, to which Brian replied that Wade-Trim is still working on obtaining information. 2) Pike reported that the cement steps on the dock side are crumbling and OSHA had recommended that they be repaired. He had one quote for $1600-1700. Brian suggested that they look around for other areas around the plant that may also need repair and have them all done at once. Beaudua and Knotts suggested a few names of contractors who Dion could contact for bids. 3) Hospital lift station: Due to several new subdivisions in the area of this lift station, this station may have to be upgraded. Brian said that there had been talk of also converting the Meisner Road lift station, and that some of the pumps may need upgrades soon. McCulloch again noted that the Township Board may have to be approached to make decisions for work on lift stations, not the Authority.

4) Pike explained the problems he is having because of the shortage of employees at the Sewage Plant when vacations and classes are taken by the employees and asked how he should go about getting another one hired. Beaudua noted that when the two plants were separated that a chart had been drawn up for future hiring. The Sewage Plant was to have one superintendent and four operators. Presently, there are only three operators. Although the Authority operates the plants, the personnel are hired through East China Township. McCulloch recalled that in a Deficiency Letter a few years ago from the MI DEQ, they had recommended that the Sewage Plant maintain a full time staff of five employees. Knotts made a motion to request that East China Township hire one additional employee for the Sewage Plant, with the qualifications and grade level information to be coordinated with the Superintendent. Motion supported by Allen and carried with all ayes.

5) Computer Upgrade: Pike reported that since his computer only has Windows 98 that he cannot have the new GIS system loaded at the Sewage Plant as it requires Windows XP. He noted that he did get authorization to have a satellite dish installed for the internet and it was installed today. There was discussion regarding what type of computer is required, the price range, and where it should be purchased. Pike noted that East China Township wanted to get any future computers all the same brand since they are able to get a government discount. Engr. Slizewski noted that "Scott" at Wade-Trim could advise us of what would be required on a computer to allow the GIS installation. He would be the contact person to install it when a new computer is purchased. Motion was made by Bogue, supported by Knotts, to authorize Supt. Pike to work with Scott at Wade-Trim to get the specifications in order to purchase a new computer for the Sewage Plant, with the cost not to exceed $700.00. Roll call vote: Ayes: Allen, Bogue, McCulloch, Knotts, and Beaudua. Nays: None. Motion carried. 6) Pike reported that the two samplers have been retrofitted by Serve-All Company to regulate the refrigeration units and are working properly.

Any Other Business: None.

There being no further business, Allen moved to adjourn at 9:24 p.m., supported by McCulloch. Carried with all ayes.

The next meeting is tentatively scheduled for June 14, 2005 at 7:00 p.m. at the Water Treatment Plant. Supt. Pike will not be able to attend this meeting.

Donald K. Beaudua

Chair

Sharon M. McCulloch

Secretary/Treasurer