YPSILANTI COMMUNITY UTILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING

Transcription

1 Agenda YPSILANTI COMMUNITY UTILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING Wednesday, July 25, :00 p.m. YCUA Administration Building 2777 State Road Ypsilanti, MI CALL TO ORDER 2. MINUTES OF PREVIOUS MEETING June 27, NEW BUSINESS A. Request to Approve Revised Purchasing Policy Dwayne Harrigan B. Request to Approve Purchase of Valves re: 2018 West Tertiary Filter Repairs in the Amount of $77,128 (O & M Expense Account No ) Scott D. Westover C. Request to Approve Award of Contract re: 2018 Road Repairs Phase 2 in the Amount of $215,325 (O & M Expense Account No ) Scott D. Westover D. Request to Approve Award of Bids re: Wastewater Treatment Plant Bulk Chemicals Purchase in the Approximate Amount of $550,000 (O & M Expense Account No ) Sreedhar Mullapudi E. Fund Balance Report Dwayne Harrigan F. Financial Report Authority Net Assets Report Dwayne Harrigan G. Usage Report Consumption Report Jeff Castro H. Attorney s Report Thomas E. Daniels I. Human Resources Report Kevin M. Welch J. Director s Report Jeff Castro 4. OLD BUSINESS 5. OTHER BUSINESS 6. STATEMENTS AND CHECKS 7. PUBLIC COMMENTS 8. ADJOURNMENT Last Revised: July 18, 2018

2 YCUA Board Meeting Schedule for 2018 All meetings are held at 4:00 p.m. in the Board Room of the YCUA Administrative Building, 2777 State Road, Ypsilanti, Michigan Wednesday, January 24 Wednesday, July 25 Wednesday, February 28 Wednesday, August 22 Wednesday, March 28 Wednesday, September 26 Wednesday, April 25 Wednesday, October 24 Wednesday, May 23 Wednesday, November 28 Wednesday, June 27 Wednesday, December 19* * Moved ahead from Wednesday, December 26 due to Christmas holiday. YCUA Board of Commissioners Term Expirations Brenda L. Stumbo, Chair 01/01/ /31/2020 Michael Bodary, Vice Chair - 08/21/ /16/2020 Jon R. Ichesco, Secretary / Treasurer - 02/17/ /17/2018 Larry J. Doe, Commissioner 01/01/ /31/2019 Keith P. Jason, Commissioner 03/12/ /31/ YCUA Committee Appointments per Board Meeting of February 28, 2018 Finance Committee Brenda L. Stumbo, Chair Larry J. Doe Jeff Castro Aaron Sprague Dwayne Harrigan Personnel Committee Keith P. Jason, Chair Brenda L. Stumbo Jeff Castro Kevin Welch Hearing Officers Jon R. Ichesco (to hear Township cases) Larry J. Doe (to hear City cases) Last Revised: March 8, 2018

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5 Director s Letter TO: YCUA Board Members FROM: Jeff Castro REFERENCE: Agenda Items - YCUA Board Meeting of July 25, 2018 Date: July 20, STATE ROAD YPSILANTI, MI Telephone No.: Fax No.: AGENDA ITEM: 3.A Request to Approve Revised Purchasing Policy DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25, 2018 PRESENTER: Dwayne Harrigan BACKGROUND: Included in your Board materials is a memo from YCUA Finance Director Dwayne Harrigan requesting approval of modifications to the purchasing policy to reflect an increase in the Class B requirement to $24,999 and an increase in the Class C requirement to $25,000 (Board approval). Also, the addition of his / her designee when the Director is absent. The other change is the elimination of Michigan Contractor and Builder magazine from the publishing list as it no longer exists. RATIONALE: This will allow the Authority to make purchases of up to $25,000 for timely repairs and maintenance without the delay of waiting for approval of the Board. RECOMMENDED ACTION: Approval of Revised Purchasing Policy

6 AGENDA ITEM: 3.B Request to Approve Purchase of Valves re: 2018 West Tertiary Filter Repairs in the Amount of $77,128 (O & M Expense Account No ) DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25, 2018 PRESENTER: Scott D. Westover BACKGROUND: Included in your Board materials is a memo from YCUA Engineering Manager Scott D. Westover requesting approval of a quote from Kennedy Industries, Inc. to supply two 30-inch diameter butterfly valves to be incorporated into the west tertiary filter repairs project. Last month, the Board authorized staff to obtain construction bids for the repair work. As noted on the quote, the valves have an extended lead time of 13 to 15 weeks between order and shipment. Consequently, in order to have the filter repairs completed prior to melting and / or rain events late next winter, it is felt that ordering the valves ahead of the construction contract and providing the materials to the construction contractor is the best course of action. Kennedy Industries, Inc. is the sole representative in the lower peninsula of Michigan for DeZurik, Inc., manufacturer of the butterfly valves used in the wastewater treatment plant. RATIONALE: Ordering materials and providing them to the construction contractor for installation allows for faster completion of the needed repairs. RECOMMENDED ACTION: Approval of Purchase of Valves re: 2018 West Tertiary Filter Repairs in the Amount of $77,128 (O & M Expense Account No ) AGENDA ITEM: 3.C Request to Approve Award of Contract re: 2018 Road Repairs Phase 2 in the Amount of $215,325 (O & M Expense Account No ) DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25, 2018 PRESENTER: Scott D. Westover BACKGROUND: Included in your Board materials is a memo from YCUA Engineering Manager Scott D. Westover requesting approval of the award of contract for the 2018 Road Repairs Phase 2 to Midwest Pavement Contracting, Inc. in the amount of $215,325. The project consists of permanent restoration of pavements disturbed by the Authority s excavations to operate, maintain, and repair water supply and / or wastewater infrastructure at various locations in both the City of Ypsilanti and Charter Township of Ypsilanti. All 2

7 restoration work will be completed in accordance with the agency having jurisdiction over the right-of-way or easement within which the repair is located. The project advertisement was posted on both the YCUA website and the Michigan Intergovernmental Trade Network and was also provided to several statewide project clearing houses. Sealed bids were received from three bidders on July 12, 2018 with the low, responsible bid from Midwest Pavement Contracting, Inc. The tabulation of bids is also included. The Authority has worked with Midwest Pavement Contracting, Inc., in the past and feels they are capable of performing the work. RATIONALE: Road cuts made during water and sewer maintenance need to be permanently repaired. RECOMMENDED ACTION: Award of Contract re: 2018 Road Repairs Phase 2 in the Amount of $215,325 (O & M Expense Account No ) AGENDA ITEM: 3.D Request to Approve Award of Bids re: Wastewater Treatment Plant Bulk Chemicals Purchase in the Approximate Amount of $550,000 (O & M Expense Account No ) DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25, 2018 PRESENTER: Sreedhar Mullapudi BACKGROUND: Included in your Board materials is a memo from YCUA Director of Compliance / Wastewater Operations Sreedhar Mullapudi requesting approval of the award of bids for the WWTP bulk chemicals purchase in the approximate amount of $550,000. Eight prospective bidders obtained bidding documents. Sealed bids were accepted June 11-27, Five prospective bidders submitted bids and a tabulation of the bids is also included. The WWTP uses sodium hydroxide for odor control and sulfur dioxide removal, sodium hypochlorite for odor control and disinfection, and aluminum sulfate to supplement phosphorus removal. The Authority currently has one-year purchase agreements in place for these chemicals which will expire on August 31, In order to fully evaluate all pricing options, the wastewater department requested bids for one-year and two-year contracts and an expiration date of August 31 which, moving forward, will allow correlation with the end of YCUA s fiscal year. Based on the unit cost for said chemicals for a 12-month contract, the Authority staff believes the 12-month pricing is better suited for YCUA s needs. Following is the recommendation and rationale for awarding 12-month purchase agreements with the following suppliers: 3

8 Aluminum Sulfate: Recommendation to award agreement to lowest bidder, USALCO Michigan City Plant LLC, at $ per wet pound. Although USALCO has not provided services to the Authority previously, the credentials presented in the Bid indicate that USALCO is capable of providing the desired services. Sodium Hypochlorite: Recommendation to award agreement to lowest bidder, PVS Nolwood Chemicals, Inc. at $0.074 per wet pound. PVS Nolwood Chemicals is the current provider of Sodium Hypochlorite to the Authority. Sodium Hydroxide: Recommendation to award agreement to lowest bidder, JCI Jones Chemicals, Inc. at $0.088 per wet pound. JCI Jones Chemicals previously provided Sodium Hydroxide to the Authority. RATIONALE: Bulk chemicals are needed for odor control, disinfection, and phosphorous removal. RECOMMENDED ACTION: Approval of Award of Bids re: Wastewater Treatment Plant Bulk Chemicals Purchase in the Approximate Amount of $550,000 (O & M Expense Account No ) AGENDA ITEM: 3.E Fund Balance Report DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25, 2018 PRESENTER: Dwayne Harrigan BACKGROUND: The Fund Balance Report for the month is included in your Board materials. Please examine the information and any questions regarding the report or the figures can be answered at the Board meeting. RATIONALE: N/A RECOMMENDED ACTION: Informational only; no motion from the Board required AGENDA ITEM: 3.F Financial Report Authority Net Assets DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25,

9 PRESENTER: Dwayne Harrigan BACKGROUND: The Authority Net Assets Report for the month is included in your Board materials. Please examine the information and any questions regarding the report or the figures can be answered at the Board meeting. RATIONALE: N/A RECOMMENDED ACTION: Informational only; no motion from the Board required AGENDA ITEM: 3.G Usage Report Consumption Report DATE PREPARED: July 19, 2018 DATE OF MEETING: July 25, 2018 PRESENTER: Jeff Castro BACKGROUND: The Consumption Report for Authority usage for the month is included in your Board materials. Please examine the information and any questions regarding the report or the figures can be answered at the Board meeting. RATIONALE: N/A RECOMMENDED ACTION: Informational only; no motion from the Board required AGENDA ITEM: 3.H Attorney s Report DATE PREPARED: TBA DATE OF MEETING: July 25, 2018 PRESENTER: Thomas E. Daniels BACKGROUND: N/A RATIONALE: N/A RECOMMENDED ACTION: Informational only; no motion from the Board required

10 AGENDA ITEM: 3.I Human Resources Report DATE PREPARED: TBA DATE OF MEETING: July 25, 2018 PRESENTER: Kevin M. Welch BACKGROUND: N/A RATIONALE: N/A RECOMMENDED ACTION: Informational only; no motion from the Board required AGENDA ITEM: 3.J Director s Report DATE PREPARED: TBA DATE OF MEETING: August 23, 2017 PRESENTER: Jeff Castro BACKGROUND: N/A RATIONALE: N/A RECOMMENDED ACTION: Informational only; no motion from the Board required. Last Revised: July 20,

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12 Minutes YPSILANTI COMMUNITY UTILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING Wednesday, June 27, :00 p.m. YCUA Administration Building 2777 State Road Ypsilanti, MI Members Present: Brenda L. Stumbo, Michael Bodary, Jon R. Ichesco, and Keith P. Jason. Members Absent: Larry J. Doe. 1. CALL TO ORDER: Ms. Stumbo called the meeting to order at 4:00 p.m. 2. MINUTES OF THE PREVIOUS MEETING: Motion by Jason to receive and file the minutes of the May 23, 2018 meeting as presented. Support by Bodary. In favor: All. Opposed: None. (Motion carried.) 3. NEW BUSINESS: A. Request to Approve YCUA Resolution No re: Health Care Savings Plan Administration Kevin M. Welch Mr. Welch advised the Board that this resolution aligns YCUA s MERS retirement plan contract with current practice and the Authority s labor and employment agreements. He then outlined the change in more detail. Motion by Jason to approve YCUA Resolution No re: Health Care Savings Plan Administration. Support by Bodary. In favor: All. Opposed: None. (Motion carried.) B. Request to Approve YCUA Resolution No re: Adoption of the YCUA State Revolving Fund (SRF) Project Plan Dated June 29, 2018 and Designating an Authorized Representative (Restricted Funds Account No ) Scott D. Westover Mr. Westover advised the Board that this a requirement of the SRF loan process. He indicated that draft project plan was issued on May 24 th and a public hearing was held this past Monday. Mr. Westover explained that this is the final step prior to submitting the plan to the state. He pointed

13 BOARD MEETING MINUTES YPSILANTI COMMUNITY UTILITIES AUTHORITY June 27, 2018 Page 2 out that this does not commit YCUA to anything but it makes the Authority eligible for low-interest loans for six projects at the plant over the next five years. He then described the projects at length. Motion by Bodary to approve YCUA Resolution No re: Adoption of the YCUA State Revolving Fund (SRF) Project Plan Dated June 29, 2018 and Designating an Authorized Representative (Restricted Funds Account No ). Support by Ichesco. In favor: All. Opposed: None. (Motion carried.) C. Request to Approve Authorization to Seek Bids re: 2018 West Tertiary Filter Repairs (O & M Expense Account No ) Scott D. Westover Motion by Bodary to provide Authorization to Seek Bids re: 2018 West Tertiary Filter Repairs (O & M Expense Account No ). Support by Jason. In favor: All. Opposed: None. (Motion carried.) D. Request to Approve Authorization to Seek Bids re: 2018 WTUA Influent Pipes Replacement (O & M Expense Account No ) Scott D. Westover Motion by Jason to provide Authorization to Seek Bids re: 2018 WTUA Influent Pipes Replacement (O & M Expense Account No ). Support by Bodary. In favor: All. Opposed: None. (Motion carried.) E. Request to Approve - Award of Contract re: 2018 Drop Manholes Sanitary Sewer Rehabilitation in the Amount of $239, (O & M Expense Account No ) Scott D. Westover Motion by Bodary to approve Award of Contract re: 2018 Drop Manholes Sanitary Sewer Rehabilitation in the Amount of $239, (O & M Expense Account No ). Support by Ichesco. Mr. Westover advised the Board that this project includes 15 sewers that have been affected by hydrogen sulfite, which results from drops in hydraulic elevation. He indicated that the pipes are in need of rehabilitation before they collapse. Mr. Westover explained that this bid came in slightly lower than expected. Mr. Castro interjected that hydrogen sulfite causes corrosive acid that has caused failures at Rawsonville and Whittaker Roads. Mr. Bodary inquired as to the locations of these 15 sewers. Mr. Westover responded that all the locations are in the township. He pointed out that several locations in the city were examined and they were in acceptable condition. He then outlined the rehabilitation process in detail, which he

14 BOARD MEETING MINUTES YPSILANTI COMMUNITY UTILITIES AUTHORITY June 27, 2018 Page 3 likened to putting a stent in an artery. Mr. Westover also explained that there will be no excavation required. In favor: All. Opposed: None. (Motion carried.) F. Request to Approve - Tetra Tech Engineering Proposal re: Willow Run Pump Station Generator Replacement in the Not-to-Exceed Amount of $36,500 (O & M Expense Account No ) Scott D. Westover Motion by Bodary to approve Tetra Tech Engineering Proposal re: Willow Run Pump Station Generator Replacement in the Not-to-Exceed Amount of $36,500 (O & M Expense Account No ). Support by Jason. Mr. Westover advised the Board that this proposal is for the design and bidding services for the generator that has exceeded its useful life and is in need of replacement, as was evidenced this past spring. The project was then discussed further. In favor: All. Opposed: None. (Motion carried.) G. Request to Approve - Change Order No. 1 re: 2017 Road Repairs Phase 2 in the Amount of $17, (O & M Expense Account No ) Scott D. Westover Motion by Ichesco to approve Change Order No. 1 re: 2017 Road Repairs Phase 2 in the Amount of $17, (O & M Expense Account No ). Support by Bodary. Mr. Westover advised the Board that this change order reflects a couple of locations that got larger between the bid and construction and a couple that were thicker than anticipated. He indicated that this is the first time in several years that there has been an increase. Mr. Westover explained that the contractor did a good job despite the changes. Mr. Castro interjected that some of the increase was due to jobs that were missed on the prior phase and were added to phase 2. Ms. Stumbo inquired as to whether there was a contingency. Mr. Westover responded that contingencies have not been requested the last couple of times. Mr. Bodary inquired as to the original contract amount. Mr. Westover responded that the original figure was about $202,600. Ms. Stumbo commented that perhaps it is time to consider once again including contingencies. In favor: All. Opposed: None. (Motion carried.)

15 BOARD MEETING MINUTES YPSILANTI COMMUNITY UTILITIES AUTHORITY June 27, 2018 Page 4 H. Authorization to Seek Bids re: Incinerator Emission Testing and Relative Accuracy Test Audit (O & M Expense Account No ) - Sreedhar Mullapudi Motion by Jason to provide authorization to Seek Bids re: Incinerator Emission Testing and Relative Accuracy Test Audit (O & M Expense Account No ). Support by Bodary. Mr. Mullapudi advised the Board that YCUA s air permit issued by the Michigan Department of Environmental Quality (MDEQ) requires annual emission testing to demonstrate compliance with permitted pollutants. He indicated that the tests are performed in accordance with established EPA procedures and guidelines. Mr. Mullapudi explained that the Relative Accuracy Test Audit will include temporary placement of an independent monitoring system to collect emissions data in parallel with the YCUA s on-site monitoring system. He pointed out that YCUA is required to conduct a Relative Accuracy Test Audit annually as a condition of the monitoring protocol which has been developed to comply with EPA s Maximum Achievable Control Technology Standard. Mr. Mullapudi also explained that the emission testing and Relative Accuracy Test Audit will include two separate mobilization efforts by the successful bidder. He further advised that staff anticipates that the initial mobilization effort will be for a Relative Accuracy Test Audit and will be scheduled between April and June. Mr. Mullapudi stated that the second mobilization effort for emission testing will most likely be scheduled in late November or early December. He acknowledged that, in order to fully evaluate all pricing options and improve logistics, the wastewater department plans to request bids for performing the required work in 2019 and In favor: All. Opposed: None. (Motion carried.) I. Request to Approve - Schwing Bioset Proposal re: Lime System Expansion in the Amount of $94,670 (O & M Expense Account No ) Sreedhar Mullapudi Motion by Bodary to approve Schwing Bioset Proposal re: Lime System Expansion in the Amount of $94,670 (O & M Expense Account No ). Support by Ichesco. In favor: All. Opposed: None. (Motion carried.) J. Request to Approve - Purchase of Main Scum Pumps in the Amount of $23,944 (Restricted Funds Account No ) Stacey L. Reynolds

16 BOARD MEETING MINUTES YPSILANTI COMMUNITY UTILITIES AUTHORITY June 27, 2018 Page 5 Motion by Bodary to approve the Purchase of Main Scum Pumps in the Amount of $23,944 (Restricted Funds Account No ). Support by Jason. Mr. Reynolds advised the Board that there are two main pumps that transport scum from the well to the concentrator and the collection system includes scum transfer pumps from the grit screen and primary and final settling tanks. He indicated that, when there are high flows, the main scum pump becomes overwhelmed. Ms. Stumbo inquired as to what the dollar amount is for Board approval requirement on purchases. Mr. Harrigan responded that the purchasing policy sets the limit at $10,000. Ms. Stumbo suggested that it be increased to $25,000 in order to make purchases like this less cumbersome for operations. Mr. Castro responded that a recommendation will be made at the next Board meeting. In favor: All. Opposed: None. (Motion carried.) K. Request to Approve - Purchase of Vehicles in the Amount of $132,084 (Motor Pool Expense Account No ) Stacey L. Reynolds Motion by Jason to approve Purchase of Vehicles in the Amount of $132,084 (Motor Pool Expense Account No ). Support by Bodary. Mr. Reynolds advised the Board that these bid requests were advertised on MITN and also hand delivered to local business. He indicated that sealed bids were received on June 8, Mr. Reynolds explained that four bidders each submitted a proposal for two one-ton extended cab short bed trucks and two one-ton maintenance service body trucks with the low, responsible bid from Jack Demmer Ford. He pointed out that the condition of the fleet is evaluated each year for age, mileage, type of service, reliability, and invested repair cost. Mr. Reynolds also explained that the last investment in the motor pool was in Mr. Bodary inquired as to who received the hand-delivered bid requests. Mr. Reynolds then listed the recipients. In favor: All. Opposed: None. (Motion carried.) L. Fund Balance Report Dwayne Harrigan Informational only; no motion from the Board required. M. Financial Report Authority Net Assets Dwayne Harrigan

17 BOARD MEETING MINUTES YPSILANTI COMMUNITY UTILITIES AUTHORITY June 27, 2018 Page 6 Informational only; no motion from the Board required. N. Usage Report Consumption Report Jeff Castro Informational only; no motion from the Board required. O. Attorney s Report Thomas E. Daniels There was no Attorney s Report for the month. P. Director s Report - Jeff Castro Mr. Castro advised the Board that the lead and copper rule from the EPA and MDEQ is expected within the next month or two. He indicated that regional utilities are beginning to update their budgets to reflect what is coming in terms of increased sampling and analysis. Mr. Castro explained that many communities will be privatizing some of their lead and copper sampling and many will be adding to their staff. He pointed out that those communities that have lead service lines will have the responsibility to remove them, even those that are on the homeowners property. Mr. Castro also explained that the City of Ypsilanti and Ypsilanti Township have done a remarkable job over the last 20 years of replacing everything non-copper between the water main and the property line. Mr. Castro also advised the Board that PFAS is something that they will be hearing more and more about in the months to come. He indicated that PFAS is a chemical pollutant that is found in a multitude of products including fire retardant, water resistant, and non-stick materials. Mr. Castro explained that PFAS has been found in Great Lakes fish and currently, contributors are being identified and new limits set. He pointed out that the EPA and MDEQ have no intention to put anyone out of business but that there will be future pre-treatment requirements. Mr. Castro also explained that the Board is welcome to forward any inquiries to him or Mr. Mullapudi. He further advised that there is a great deal of information available including maps of groundwater sources. Mr. Castro stated that surface water sources are currently not a concern. He acknowledged that the threshold currently under consideration is 70 parts per trillion for drinking water and 11 parts per trillion for wastewater. Mr. Castro confirmed that 1 part per trillion is equivalent to one grain of sand in an Olympic-sized swimming pool. He explained that this is a learning process for all parties that will be half a decade in the works. Mr. Castro pointed out that YCUA will continue to update the Board. 4. OLD BUSINESS: There was no Old Business for the month.

18 BOARD MEETING MINUTES YPSILANTI COMMUNITY UTILITIES AUTHORITY June 27, 2018 Page 7 5. OTHER BUSINESS: There was no Other Business for the month. 6. STATEMENTS AND CHECKS: Motion by Ichesco to pay the current month s bills in the amount of $3,652, Support by Bodary. In favor: All. Opposed: None. (Motion carried.) 7. PUBLIC COMMENTS: There were no Public Comments for the month. 8. ADJOURNMENT: Motion by Bodary to adjourn the meeting at 4:31 p.m. Support by Ichesco. In favor: All. Opposed: None. (Motion carried.) Respectfully submitted, JON R. ICHESCO, Secretary - Treasurer

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20 Memo Date: July 18, STATE ROAD YPSILANTI, MI Telephone No.: Fax No.: TO: FROM: REFERENCE: JEFF CASTRO, Director DWAYNE HARRIGAN, Finance Director REQUEST UPDATE PURCHASING POLICY Request: This memorandum is to modify the purchasing policy to reflect an increase in Class B requirement to $24,999 and increase the Class C requirement to $25,000 (Board approval). Also, added the his/her designee when the Executive Director is absent. The other change is the eliminating of Michigan Contractor and Builder magazine from the publishing list as it no longer exists. Rationale: This will allow the Authority to make purchases of up to $25,000 for timely repairs and maintenance without the delay of waiting for approval of the Board. Please contact me with any questions or concerns regarding this recommendation.

21 YCUA Purchasing Policy I. Premise The purpose of this Purchasing Policy is to provide for institutional consistency and accountability over those funds entrusted to Authority stakeholders. This Policy outlines who is authorized to commit the Authority to Contracts (as defined herein) for the acquisition of Covered Good and/or Services (as defined herein) and establishes specific rules and obligations. This Policy also provides for sound internal controls to protect institutional assets, promote effectiveness and efficiency. II. Financial Classes and Requirements Class A - $1.00 through $2,499 Purchases under $1000 require prior approval from the Department Director. Purchases greater than $1,000 also require prior approval from the Executive Director or his/her designee. Class B - $2,500 through $24,999 Three (3) quotes must be solicited and at least two (2) must be received. These are not required to be sealed bids. Documentation of the quotes must be attached to the final Purchase Order sent to the Accounts Payable department. Any purchases made from a Sole Supplier require an explanation attached to the purchase requisition. Any deviation from the above procedure must be approved in advance by the Executive Director or his/her designee. Class C - $25,000 and Above Either a Request for Proposal (RFP) or a Sealed Bid (RFB) is required, as well as YCUA Board of Commissioner Approval. The YCUA Executive Director or his/her designee will make the final determination as to whether a Class C requisition requires a RFP or a RFB. The Primary Distinction between choosing a Request for Bid (RFB) versus a Request for Proposal (RFP) is as follows: Request for Bid (RFB): A solicitation in which the terms, conditions, and specifications are described and responses are not subject to negotiation (i.e. specifically known items: equipment, roof replacement) Request for Proposal (RFP): A solicitation in which it is not advantageous to set forth all the actual, detailed requirements at the time of solicitation and responses are subject to negotiation (i.e. software proposal). Public Notice of the RFP or RFB is recommended in at least two (2) advertising / informational mediums, unless a Sole Source Provider is the only available option. The initiating Department Director is responsible for placing the Notice(s) and for ensuring that the bid process is a sealed bid process (if RFB). A minimum of 10 business days is required from the date of an advertisement, to the date of the opening of sealed bids.

22 YCUA Purchasing Policy Last Updated: July 19, 2018 Page 2 Local Preference Provision The Ypsilanti Community Utilities Authority, believing there is a benefit to expending purchasing dollars within the local community, will give additional consideration to bids from local firms with a regular place of business within the YCUA Service Area (currently defined as including the Townships of Ypsilanti, Pittsfield, Superior, Augusta, Sumpter, York, Northville, Plymouth, Canton as well as the City of Ypsilanti). A copy of the bidder s business license must be included with their Official Bid, establishing the location of their business address. A post office box will not be acceptable, for these purposes, as a business address. In the event that the prima facie low bid or quote for a product or service shall be $250,000 or less, local businesses shall receive an allowance of three percent (3%) of their bids. This allowance shall be for the purpose of identifying a nominal low bidder only, and shall not affect the actual amount of the bid award. In the event the prima facie low bid or quote shall exceed $250,000, there shall be no local preference allowance. Nothing in this policy shall modify or constrain YCUA s power to reject any or all bids and to accept any proposal it considers to be in the best interest of the Ypsilanti Community Utilities Authority. For Non-Construction Projects, it is recommended that at least two of the following mediums be utilized: The Michigan Intergovernmental Trade Network website ( The YCUA website For Construction Projects, it is recommended that at least two of the following mediums be utilized: The Michigan Intergovernmental Trade Network website. The YCUA website Resource Note: for specific samples of the following, see earlier examples of YCUA RFPs, RFBs and Newspaper Advertisement Copy held in the YCUA intranet archive (department director restricted access, path as follows g:\deptdata\rfp History): III. Exceptions to the Purchasing Requirements 1. Emergency Items Items which, as the situation dictates, are required immediately in order to ensure the safety of the YCUA facility, its employees and/or its surrounding population. Emergency items must have the Verbal Approval of either the YCUA Executive Director prior to purchase. Documentation after the purchase event will be required to support this action, which will be reviewed by the YCUA Executive Director. Note: These emergency items must then go through the official Purchase Order process after the fact, to ensure proper authorizations. 2. Contracts and YCUA Board Approved Projects Certain large-scale, capital construction projects (See item II - Financial Classes and Requirements / Level C ) are currently exempt from the nominal Purchase Order process, but may be included under the umbrella of Blanket Purchase Orders (See item IV.3. Exceptions / Blanket Purchase Orders ).

23 YCUA Purchasing Policy Last Updated: July 19, 2018 Page 3 a. If no Purchase Order is generated, a copy of the approved contract and/or Board Minutes should accompany the invoice to the Accounting department. 3. Blanket Purchase Orders Items that are purchased in bulk on a continuing basis (the same specific item; not various items from the same vendor). A Blanket Purchase Order may be issued at the beginning of the fiscal year to cover the entire year s estimated usage cost, and will be drawn against as the year proceeds. Determine your annual estimated usage, and create line items of equal amounts (i.e. one per month), totaling your annual expense requirements. If the activity exceeds the original Purchase Order amount, a new Purchase Order will have to be approved. Examples of Blanket Purchase Orders may include: office and copier supplies; chemicals and hardware; refuse and recycling services. The Director of Finance will review all requests for the use of Blanket Purchase Orders in order to coordinate organization-wide purchases of similar items. 4. Extendable and Cooperative Contracts - a. Extended and Cooperative Contracts- Contracts that have been competitively priced by other entities and extended to YCUA are exempt from section II requirements. YCUA Board of Commissioners Approval is still required if the contract is $25,000 or more. IV. Use of YCUA Credit Card 1. PURPOSE: To set forth the policy and procedure for the YCUA credit card program. 2. INTRODUCTION: The YCUA credit card program has been established to provide a convenient means with which to make allowable purchases. The HR Director, or his or her representative, is responsible for managing the card usage. The Finance Director is responsible for managing the cardholder account. 3. AUTHORIZED CARD USE: The credit card is limited for uses where a vendor will not establish an account with YCUA, easily accept a YCUA check or YCUA Purchase Order. The card is also available when the use of a credit card to purchase an item will better facilitate a necessary purchase such as an emergency. Examples include online purchases, hotel, airfare, conferences, emergencies, etc. The HR Director, or his or her representative will verify that all charges made with the card are in compliance with YCUA policies and procedures. There will be total monthly credit limit of $10, UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE:

24 YCUA Purchasing Policy Last Updated: July 19, 2018 Page 4 The credit card must never be used to purchase items for personal use or for non-ycua purposes, even if the employee intends to reimburse YCUA. 5. MAKING A PURCHASE WITH THE CREDIT CARD: a. There will be one credit card, held by the HR Director, or his or her representative. The card will not leave the HR Department, unless approved by the Executive Director. b. An employee seeking to purchase an item with the credit card will complete a credit card authorization form, and submit it to HR Director, or his or her representative. All normal required purchasing approvals, forms and signatures will be completed prior to using the credit card. Example, purchases over $1,000 require a purchase order and the preapproval of the Executive Director. c. The HR Director, or his or her representative, will complete the transaction or will coordinate the purchase with the employee seeking the purchase. d. When making purchases other than in person, such as via telephone, Internet, etc., the employee should give the merchant the account number on the YCUA credit card and print a receipt or the screen from the computer if an Internet purchase. The employee is responsible for obtaining all documentation related to the purchase made (packing slips, invoices, receipts, mail order form copies, computer receipts or screen printouts, etc.). e. The HR Director, or his or her representative, will reconcile the monthly statement and submit all receipts to Accounts Payable within two weeks prior to the payment due date. f. All credit card purchases must comply with our current purchasing and approval procedures. The use of the credit card does not eliminate the need to obtain competitive pricing, secure required approvals and complete appropriate forms. 6. MERCHANDISE RETURNS AND EXCHANGES: a. The employee making the original purchase is responsible for contacting the merchant when merchandise purchased with the credit card is not acceptable, such as incorrect, damaged, defective, etc., and arranging a return for credit or an exchange. b. If merchandise is returned for credit, the employee is responsible for obtaining a credit receipt from the merchant and turning the credit receipt into the HR Director, or his or

25 YCUA Purchasing Policy Last Updated: July 19, 2018 Page 5 her representative, within three (3) days. Receiving cash or checks to resolve a credit is prohibited. c. If merchandise must be exchanged, the employee is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation for the exchange is to be retained with the support documentation for that purchase. 7. VERIFICATION OF CHARGES: a. The HR Director, or his or her representative, is responsible for ensuring all charges made with the credit card comply with this policy. The HR Director, or his or her representative, is responsible for checking all transactions against the corresponding support documentation to verify their accuracy and appropriateness. b. Once a charge is made with the card, the HR Director, or his or her representative, will be provided with a copy of the receipt. c. If the employee disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the charge appears by the HR Director, or his or her representative. d. The HR Director, or his or her representative, is responsible for reviewing all transactions and verifying that each transaction is supported by adequate documentation and meets all the criteria for authorized card use. Discrepancies may result from insufficient support documentation, not meeting one or more of the criteria set forth in section 3, or the employee disputing the charge. All discrepancies must be investigated and resolved. The disposition of each discrepancy must be documented and retained with the Statement of Account and/or support documentation. The employee from whom the discrepancy occurred is responsible for the discrepancy. 8. SECURITY The HR Director, or his or her representative, must keep the credit card in a secure location at all times. Employees must not write the YCUA s credit card number where others can easily see it. It is prohibited to keep the YCUA s credit card number on file to use again.

26 YCUA Purchasing Policy Last Updated: July 19, 2018 Page 6 9. LOST, STOLEN OR DAMAGED CARD: a. The HR Director, or his or her representative, will report a missing card within 24 hours to the bank. b. After the above notification procedures are completed, the HR Director, or his or her representative, will receive a new credit card from the bank. c. If the credit card is found after being reported missing or stolen, the card is to be cut in half. The same procedure is to be followed for a damaged card.

27 Credit Card Authorization Form Employee Name: Date: Purchase Description: Estimated Amount to be Charged: Vendor Name: Department Director Approval Date: HR Approval: Date: Request to Take Card out of building Yes Executive Director Approval Date

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29 Memo Date: July 9, STATE ROAD YPSILANTI, MI Telephone No.: Fax No.: TO: FROM: CC: REFERENCE: JEFF CASTRO, Director SCOTT WESTOVER, P.E., Engineering Manager SREE MULLAPUDI, P.E., Director of Wastewater Operations STACEY REYNOLDS, Director of Maintenance Operations 2018 WEST TERTIARY FILTERS REPAIRS Request to Purchase Butterfly Valves Attached to this memorandum is a quote from Kennedy Industries, Inc. to supply two each 30 diameter butterfly valves to be incorporated into the west tertiary filter repairs project. Last month the Board authorized staff to obtain construction bids for the repair work. As noted on the quote, the valves have an extended lead time of 13 to 15 weeks between order and shipment. Consequently, in order to have the filter repairs completed prior to melting and/or rain events late next winter it is felt that ordering the valves ahead of the construction contract and providing the materials to the construction contractor is the best course of action. Kennedy Industries, Inc. is the sole representative in the lower peninsula of Michigan for DeZurik, Inc., manufacturer of the butterfly valves used in the wastewater treatment plant. Please contact me if you have any questions or need additional information. G:\YCUAproj\WWTP\ West Tertiary Filters Repairs\Butterfly Valve Request Memo.docx

30 QUOTATION DATE NUMBER PAGE 7/2/ of 1 B I L L T O YCU100 YPSILANTI COMMUNITY UTILITIES 2777 STATE ROAD YPSILANITI, MI Accepted By: Company: Date: PO#: ATTENTION: SCOTT WESTOVER SWESTOVER@YCUA.ORG WE ARE PLEASED TO PROPOSE THE FOLLOWING FOR YOUR CONSIDERATON: CUSTOMER REF/PO# QUOTE JOB TITLE DEZURIK,BUTTERFLY,30",BOS-US SLP MJH/JRW SHIPPING TYPE FREIGHT ALLOWED QTY DESCRIPTION UNIT PRICE EXTENDED 2.00 DEZURIK,BUTTERFLY,30",BOS-US $38, $77, BOS,30,US,L1,CI,NBR,NBR,DI-S4*GS-12-PC8*SEH90,SP DEZURIK UN-INTERUPTED RESILIENT SEATED BUTTERFLY VALVE, CAST IRON BODY, ASME 125/150# LUGGED END CONNECTIONS, NBR SEAT, NBR SHAFT SEAL, DUCTILE IRON DISC, 416 STAINLESS STEEL SHAFT, EXTERIOR COATING 4 MILS ENAMEL, G-SERIES CYLINDER, (2) STONEL SWITCH; MECHANICAL SPDT, SWITCHES TO INDICATE VALVE OPEN & CLOSED (2) SPEED CONTROLS *DIRECT REPLACEMENT OPTION FOR EXISTING VALVE * ***VALVES QUOTED DO NOT MEET AIS OR BUY AMERICAN*** WE DO NOT INCLUDE: TAXES, INSTALLATION OR ASSEMBLY OF ANY COMPONENTS. SHIPPING: WEEKS ARO WE APPRECIATE THIS OPPORTUNITY TO QUOTE AND LOOK FORWARD TO BEING OF FUTURE SERVICE. SINCERELY, MARK HEMEYER / JASON WENDECKER PLEASE MAKE ORDER TO: DEZURIK C/O KENNEDY INDUSTRIES HOLTZ DR, WIXOM, MI This quote is subject to and incorporates by reference Kennedy Industries, Inc.'s ("Kennedy") Terms & Conditions and Customer Warranty available at which will be provided by upon written request. Kennedy reserves the right to changes the Terms & Conditions and Customer Warranty for future orders. By accepting this quote and/or issuing a purchase order relative to this quote, buyer expressly agrees to the provisions set forth in the Terms & Conditions and Customer Warranty posted on Kennedy's website. CREDIT CARD PAYMENTS ARE SUBJECT TO AN ADDITIONAL 3% CHARGE NO TAXES OF ANY KIND ARE INCLUDED IN THIS PROPOSAL TOTAL: $77, P.O. Box Wixom, MI Holtz Drive Wixom, MI Phone: Fax:

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32 Memo TO: JEFF CASTRO, Director FROM: SCOTT WESTOVER, P.E., Engineering Manager CC: BOB FRY, Director of Service Operations REFERENCE: 2018 ROAD REPAIRS PHASE 2 Bid Opening Results Date: July 12, STATE ROAD YPSILANTI, MI Telephone No.: Fax No.: Sealed bids for the 2018 Road Repairs Phase 2 project were received and publicly read aloud at 2:00 p.m. on July 12, 2018 in the Engineering Department at the Eldon P. Ahles Administration Building. Three bidders each submitted a proposal. The Tabulation of Bids is attached to this memorandum. The low, responsible bid was received from Midwest Pavement Contracting, Inc., of Milford, Michigan in the amount of $215, The project consists of permanent restoration of pavements disturbed by Authority excavations to operate, maintain, and repair water supply and/or wastewater infrastructure at various locations in both the City of Ypsilanti and Charter Township of Ypsilanti. All restoration work will be completed in accordance with the agency having jurisdiction over the right-of-way or easement the repair is located within. The project advertisement was posted on both the Authority website and the Michigan Intergovernmental Trade Network, and was also provided to several statewide project clearing houses. It is recommended that 2018 Road Repairs Phase 2 contract be awarded to Midwest Pavement Contracting, Inc., of Milford, Michigan in the amount of $215, based on their unit price bid. The Authority has worked with Midwest Pavement Contracting, Inc., in the past and feels they are capable of performing the work. Please contact me if you have any questions or need additional information. G:\YCUAproj\ Road Repairs Phase 2\Bid Opening Results Memo.docx

33 Tabulation of Bids received July 12, 2018 Ypsilanti Community Utilities Authority Midwest Pavement 2018 Road Repairs Phase 2 Contracting, Inc. Best Asphalt, Inc. Bidigare Contractors, Inc E. Buno Road 6334 N. Beverly Plaza 939 S. Mill Street Milford, MI Romulus, MI Plymouth, MI Tel: (248) Tel: (734) Tel: (248) Checked: July 12, 2018 Fax: (248) Fax: (734) Item Description Quantity Unit Unit Cost Total Unit Cost Total Unit Cost Total 1 Bituminous Pavement Repair, 5" thick or less 80 syd $45.00 $3, $58.00 $4, $ $12, Bituminous Pavement Repair, greater than 5" thick to 8" thick 1,750 syd $76.50 $133, $86.00 $150, $ $315, Bituminous Pavement Repair, greater than 8" thick to 11" thick 125 syd $ $12, $ $12, $ $24, Bituminous Pavement Repair, greater than 11" thick 25 syd $ $5, $ $3, $ $5, Bituminous Pavement Joint Sealant 3,200 lft $1.50 $4, $1.00 $3, $5.00 $16, Concrete Sawing and Sealing 450 lft $5.00 $2, $6.50 $2, $8.00 $3, Concrete Pavement Repair, 8" thick or less 160 syd $ $20, $ $20, $ $32, Concrete Pavement Repair, greater than 8" thick 40 syd $ $8, $ $6, $ $9, Concrete Curb and Gutter Repair 350 lft $70.00 $24, $58.00 $20, $ $43, Total (items 1-9, incl.) $215, $224, $461, Credit for locations that do not require installation of aggregate base $0.00 $0.00 $0.00 (Applies to items 1-4, 7 and 8) No other bidders

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35 Memo Date: July 13, STATE ROAD YPSILANTI, MI Telephone No.: Fax No.: TO: FROM: CC: REFERENCE: JEFF CASTRO, Director SREE MULLAPUDI, Director of Wastewater Operations ALAN SCHOCK, Wastewater Operations Supervisor REQUEST APPROVAL TO AWARD BULK CHEMICAL BIDS YCUA Board provided approval to the Wastewater Department to seek sealed bids for the purchase of bulk chemicals (sodium hydroxide, sodium hypochlorite, and aluminum sulfate) at the May 27, 2018 Board Meeting. Sealed bids were accepted by the Wastewater Department from June 11, 2018 through June 27, Eight prospective bidders obtained bidding documents. Five prospective bidders submitted bids. A tabulation of the bids is attached. YCUA s Wastewater Treatment Plant uses sodium hydroxide for odor control and sulfur dioxide removal, sodium hypochlorite for odor control and disinfection, and aluminum sulfate to supplement phosphorus removal. YCUA currently has one year purchase agreements in place for these chemicals which will expire on August 31, In order to fully evaluate all pricing options, the Wastewater Department requested bids for one year and two year contracts and an expiration date of August 31 which moving forward will allow correlation with the end of YCUA s fiscal year. Based on the unit cost for the said chemicals for 12-month contract, the Authority staff believes the 12-month pricing is better suited for the Authority WWTP needs. Following is the recommendation and rationale for awarding 12-month purchase agreements with the following suppliers: Aluminum Sulfate: Recommendation to award agreement to lowest bidder, USALCO Michigan City Plant LLC, at $ per wet pound. Although USALCO has not provided services to the Authority previously, the credentials presented in the Bid indicate that USALCO is capable of providing the desired services. Sodium Hypochlorite: Recommendation to award agreement to lowest bidder, PVS Nolwood Chemicals, Inc. at $0.074 per wet pound. PVS Nolwood Chemicals is the current provider of Sodium Hypochlorite to the Authority. Sodium Hydroxide: Recommendation to award agreement to lowest bidder, JCI Jones Chemicals, Inc. at $0.088 per wet pound. JCI Jones Chemicals previously provided Sodium Hydroxide to the Authority Please contact me with any questions or concerns regarding this recommendation.

36 Bid Opening PROJECT NAME: Wastewater Treatment Plant Bulk Chemicals Place of Bid Opening: YCUA WWTP Library (Admin. Office) Bid Date: Tuesday, June 27, 2018 Bid Time local time: 2:00 p.m. EST COMPANY NAME Aluminum Sulfate (48.8% - Iron Free) Sodium Hydroxide (20% - Membrane Grade) Sodium Hypochlorite (15%) PVS Nolwood Chemicals, Inc. NO BID (12 mon) $0.094/LB (24 mon) NO BID (12 mon) $0.074/LB (24 mon) NO BID Chemtrade Chemicals US, L.L.C. (12 mon) $0.0856/LB (24 mon) $0.0880LLB NO BID NO BID USALCO Michigan City Plant, LLC (12 mon) $ (24 mon) NO BID NO BID NO BID Carcus Corporation (12 mon) $1.284/GAL NO BID NO BID (24 mon) NO BID JCI Jones Chemicals, Inc. Kemira NO BID (12 mon) $.088/LB (24 mon) NO BID (12 mon) $.078/LB (24 mon) NO BID NO BID NO BID NO BID Opened By: Sree Mullapudi Date: 6/27/18 YCUA (Present): Helen Dudley

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38 Fund Balance Report Ypsilanti Community Utilities Authority June 30, 2018 Current 08/15 08/16 06/17 08/17 03/18 04/18 05/18 06/18 Cash Operating 4,597,931 5,028,900 9,610,514 8,523,351 10,054,064 9,756,299 10,263,374 10,961,283 Restricted 9,186,686 9,240,696 8,733,329 9,981,402 10,480,740 10,481,984 10,487,563 10,488,775 Total Avaliable Cash 13,784,617 14,269,596 18,343,843 18,504,753 20,534,804 20,238,283 20,750,937 21,450,058 Bond Monies 124, , , , , , , ,021 Total Cash 13,908,638 14,393,617 18,467,864 18,628,774 20,658,825 20,362,304 20,874,958 21,574,079 Beginning Outstanding Debt 69,842,707 70,020,589 65,483,908 67,087,945 65,068,768 64,009,153 64,009,153 64,009,153 Consttruction Projects Snow Road Pump Storage(SRF 5425) Mcgregor Road PS (5634) (110,000) 523, ,125 14,270 Tyler Pond Trestiles (5617) 930, ,723 38,115 Michigan Ave (7320) 256,066 32,193 PEW System (SRF 5427) Retention Basin (SRF 5502) 7,162 (530,000) Factory Street Pump Station (SRF 5501) WWTP Grit Handling (SRF 5582) 1,172, ,424 44,516 4,901 Smokler Textile (DWRF 7383) 28,452 Debt Payments 49,492 (2,550,000) (1,050,000) (1,112,000) Endding Outstanding Debt 71,349,261 67,503,175 66,982,215 66,154,886 64,009,153 64,009,153 64,009,153 64,009,153

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40 YPSILANTI COMMUNITY UTILITIES AUTHORITY Statements of Net Assets June 30, audited 06/30/18 8/31/17 Assets Current assets: Cash and investments $ 10,803,461 $ 7,462,754 Receivables, net 4,748,292 5,886,845 Inventories 1,250,705 1,244,573 Prepaid items 107,001 66,928 Total current assets 16,909,459 14,661,100 Noncurrent assets: Restricted assets: Cash and investments 10,453,836 10,085,571 Funds on deposit with City of Ypsilanti 2,449,847 2,449,847 Receivables, long-term portion 201, ,813 Capital assets not being depreciated 6,757,861 6,757,861 Capital assets being depreciated, net 188,983, ,218,261 Current year capital outlay projects 2,790,326 - Unamortized bond issuance costs - - Total noncurrent assets 211,636, ,713,353 Total assets 228,546, ,374,453 Deferred outflow of resources Deferred pension amounts 3,495,559 3,757,182 Deferred loss on refunding 512, ,273 Total deferred outflow of resources 4,007,629 4,305,455 Liabilities Current liabilities: Accounts payable 2,564,248 3,465,874 Retentions, deposits and other liabilities 2,135,169 2,361,163 Accrued interest payable 845, ,418 Current maturities of long-term liabilities 5,186,136 4,297,525 Current maturities of accrued compensated absences 443, ,814 Total current liabilities 11,175,051 11,182,794 Long-term liabilities: Bonds payable 61,302,574 64,442,026 Capital leases payable - Environmental liability 591, ,456 Accrued compensated absences 443, ,814 Net pension liability 23,743,896 24,005,519 Total long-term liabilities 86,081,740 89,482,815 Total liabilities 97,256, ,665,609 Net assets Invested in capital assets, net of related debt 132,042, ,847,387 Restricted 12,903,683 12,535,418 Unrestricted (6,933,085) (14,368,506) Total net assets $ 138,013,332 $ 136,014,299 1

41 YPSILANTI COMMUNITY UTILITIES AUTHORITY Statements of Revenues, Expenses and Changes in Net Assets For the eigth Months Ending June 30, 2018 (with comparative totals for same periods prior yr, and year ended 8/31/17) Unaudited Prior Year Prior Year Pro-rated YTD Data: YTD % Actual-YTD Same Periods FYE, audited YTD Budget Actual (Over)/ Actual (Over)/ 06/30/18 06/30/17 8/31/17 06/30/18 Under Budget Under Budget Operating revenue Water sales $ 13,992,252 $ 13,296,057 $ 17,650,152 $ 12,546,822 $ (1,445,430) % Sewage disposal sales 15,254,989 14,853,254 18,256,939 13,591,953 (1,663,036) % Surcharges and other usage fees: - Capital improvement surcharge 2,880,658 2,828,818 3,706,541 2,839,394 (41,265) -1.45% Construction reserve 210, , , ,520 20, % Environmental reserve 92,335 95, ,870 60,590 (31,745) % Capital cost recovery Other operating revenue 1,587,461 1,777,081 2,027,776 1,136,244 (451,217) % Sales discounts Total operating revenue 34,018,505 33,085,696 42,045,384 30,406,523 (3,611,983) % Operating expenses Water distribution 10,013,149 9,712,568 12,161,179 8,852,100 (1,161,049) % Wastewater treatment 13,379,583 13,752,662 17,754,991 12,969,273 (410,310) -3.16% Wastewater pump stations 969,817 1,152,559 1,468,251 1,083, , % Industrial surveillance 357, , , ,847 (9,431) -2.71% Transmission and distribution 6,357,300 6,063,547 8,233,710 6,036,503 (320,797) -5.31% Meter service 804, ,545 1,343, ,384 92, % Customer accounting and collections 416, , , ,350 79, % General and administration 1,414,017 1,468,000 2,008,192 1,560, , % Unallocated maintenance costs Total operating expenses 33,711,561 34,059,316 44,169,096 32,241,362 (1,470,199) -4.56% Operating income 306,944 (973,620) (2,123,712) (1,834,840) (2,141,784) % Non-operating income (expense) Investment earnings 132, , , ,500 55, % Connection fees 69,355 91, ,322 3,750 (65,605) % Debt service contribution Interest and amortization expense (1,931,249) (2,163,399) (2,097,371) (1,616,865) 314, % Gain (loss) on disposal of capital assets 1,147-4,993 - (1,147) Total non-operating income (expense) (1,728,518) (1,936,636) (1,811,455) (1,425,615) 302, % Net income (1,421,574) (2,910,256) (3,935,167) (3,260,455) (1,838,881) 56.40% Capital contributions 70, , ,470 Change in net assets (1,350,664) (2,382,249) (3,349,697) Special Item Net assets, beginning of year 139,363, ,386, ,386,887 Net assets, end of period $ 138,013,332 $ 144,004,638 $ 143,037,190 2

42 YPSILANTI COMMUNITY UTILITIES AUTHORITY Statements of Revenues (Historical), Expenses and Changes in Net Assets For the eigth Months Ending June 30, 2018 (with comparative totals for same periods prior four years) Unaudited Prior Year Prior Year Prior Year Prior Year Actual-YTD Actual- YTD Actual- YTD Actual- YTD Actual- YTD 06/30/18 06/30/17 06/29/16 06/30/15 06/30/14 Operating revenue Water sales $ 13,992,252 $ 13,296,057 $ 12,754,875 $ 11,379,782 $ 11,327,401 Sewage disposal sales 15,254,989 14,853,254 13,149,420 12,935,594 11,949,255 Surcharges and other usage fees: Capital improvement surcharge 2,880,658 2,828,818 2,835,539 2,711,089 2,759,367 Construction reserve 210, , , , ,617 Environmental reserve 92,335 95,904 85,148 80,906 79,229 Capital cost recovery Other operating revenue 1,587,461 1,777,081 1,431,453 1,338,617 1,401,859 Sales discounts Total operating revenue 34,018,505 33,085,696 30,477,220 28,665,576 27,734,728 Operating expenses Water distribution 10,013,149 9,712,568 9,288,617 8,016,019 7,986,519 Wastewater treatment 13,379,583 13,752,662 13,718,392 13,745,114 12,843,652 Wastewater pump stations 969,817 1,152, , , ,568 Industrial surveillance 357, , , , ,384 Transmission and distribution 6,357,300 6,063,547 5,684,516 5,608,985 5,746,058 Meter service 804, , , , ,204 Customer accounting and collections 416, , , , ,793 General and administration 1,414,017 1,468,000 1,461,037 1,414,451 1,437,013 Unallocated maintenance costs Total operating expenses 33,711,561 34,059,316 32,878,930 31,577,942 30,740,191 Operating income 306,944 (973,620) (2,401,710) (2,912,366) (3,005,463) Non-operating income (expense) Investment earnings 132, , , , ,014 Connection fees 69,355 91,443 49,368 13,224 30,658 Debt service contribution Interest and amortization expense (1,931,249) (2,163,399) (2,358,800) (2,481,535) (2,555,855) Gain (loss) on disposal of capital assets 1,147-7,099-21,587 Total non-operating income (expense) (1,728,518) (1,936,636) (2,180,430) (2,345,999) (2,383,596) Net income (1,421,574) (2,910,256) (4,582,140) (5,258,365) (5,389,059) Capital contributions 70, ,007 Change in net assets (1,350,664) (2,382,249) (4,582,140) (5,258,365) (5,389,059) Special Item (Bridge Rd Demo) Net assets, beginning of year 165,233, ,436, ,737, ,657, ,832,226 Net assets, end of period $ 163,882,894 $ 166,054,340 $ 170,155,449 $ 176,399,514 $ 188,443,167 3

43 City vs Township Sales Mix June 2018 Township City $14,000 $12,000 $11,781 $12,110 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $2,211 $3,145 4 $750 $2,434 Water sales Sewage disposal sales Surcharges and other usage fees $1,306 $281 Other operating revenue

44 Revenue - June 2018 YTD Other operating revenue $1,587, % Water sales $13,992, % Surcharges and other usage fees $3,183, % Wastewater Treatment sales $15,254, % 5