Title
Approval of October 18, 2023, Term Sheet between GLWA, the State of Michigan, and Highland Park
Body
Agenda of: October 25, 2023
Item No.: 2023-385
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 23, 2023
RE: Approval of October 18, 2023, Term Sheet between GLWA, the State of Michigan, and Highland Park
MOTION
Upon recommendation of William M. Wolfson, Chief Administrative and Compliance Officer/ Interim General Counsel, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the attached October 18, 2023, Term Sheet between GLWA, the State of Michigan, and Highland Park; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Over the past decade, there has been litigation between GLWA and Highland Park, GLWA and the State of Michigan, and Highland Park related to Highland Park’s receipt of water and sewerage service from GLWA and the payments for those services as well as administrative matters related to the underlying claims. As a part of that litigation, the Court directed that GLWA, the State of Michigan, and Highland Park engage in a confidential mediation process. As a result of that mediation process, GLWA, the State of Michigan, and Highland Park entered into the attached Term Sheet which outlines a proposed resolution of their differences.
Paragraph 13 of the Term Sheet states:
13. This term sheet is conditional and dependent upon (a) final approval of terms by the Governor, (b) appropriation of funds from the legislature to the extent necessary, and (c) approval by the governing bodies of GLWA, and any other necessary party on or before October 26, 2023.
JUSTIFICATION
The attached Term Sheet has been executed by the State of Michigan and approved by Highland Park and now requires approval by the GLWA Board. If approved and effectuated, the Term Sheet will provide a basis for future relations amongst the parties and the continued provision of water and wastewater services to Highland Park.
BUDGET IMPACT
Approval of the attached Term Sheet does not impact GLWA’s FY 24 budget.
COMMITTEE REVIEW
This matter is being presented directly to the Board.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.