Title
Proposed Amendment No. 5 to Water Service Contract with City of River Rouge
Body
Agenda of: January 22, 2025
Item No.: 2025-028
Amount: Revenue Contract
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 16, 2025
RE: Proposed Amendment No. 5 to Water Service Contract with City of River Rouge
MOTION
Upon recommendation of David Jones, General Counsel, the Board of Directors (“Board”) of the Great Lakes Water Authority (“GLWA”), authorizes the Chief Executive Officer (“CEO”) to execute Amendment No. 5 to the 30-year water service contract with City of River Rouge; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On January 7, 2025, the River Rouge (“City”) City Council agreed to the terms of Amendment No. 5 (“Amendment”) to its water service contract with GLWA.
During the summer of 2024, the City experienced exceedances of its contractual max day flow rate. As a result, the parties discussed how the City can best manage its usage to the contract limits. In this Amendment, the City has agreed to the modification of certain terms and conditions of the contract to provide for more oversight and management of the City’s maximum day flow rate, including annual meetings with GLWA to review usage for calendar years 2025 and 2026. The City also agreed to a corrective action plan intended to assist the parties in understanding, by October 2025, the most appropriate contract value to reflect the City’s daily water use. No changes to the Exhibit A service area map or the Exhibit B contract values (i.e., max day, peak hour, annual volume) are modified by this Amendment.
JUSTIFICATION
Approval of this Amendment provides a mutually beneficial, stable, long-term framework for interactions between GLWA and the City.
BUDGET IMPACT
None. The changes resulting from this Amendment do not affect the revenues otherwise anticipated under the contract.
COMMITTEE REVIEW
This matter is being presented to the Legal Committee for consideration at its meeting on January 22, 2025.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.