Title
Proposed Water Service Contract with City of Dearborn
Body
Agenda of: June 24, 2026
Item No.: 2026-247
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: June 22, 2026
RE: Proposed Water Service Contract with City of Dearborn
MOTION
Upon recommendation of Phyllis Hurks, General Counsel, the Board of Directors (“Board”) of the Great Lakes Water Authority (“GLWA”), authorizes the Chief Executive Officer (“CEO”) to execute a 30-year water service contract with the City of Dearborn; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On 6/23/2026, the Dearborn (“Member Partner”) City Council approved the terms of a new Water Service Contract (“Contract”) with GLWA. Except for the addition of an Exhibit C (described below), the Contract is based upon the model water contract presented to all other member partners, as subsequently amended, which was developed in partnership with the former Technical Advisory Committee, now One Water Partnership. The Contract has a thirty-year term and provides for, in part, pressure commitments by GLWA; maximum day and peak hour commitments by the Member Partner; the establishment of the One Water Partnership for a minimum term; notification and payment of charges; maintenance responsibilities of the Member Partner and GLWA; and water quality commitments by the Member Partner and GLWA. The Contract also establishes the Member Partner’s service area boundaries, future meter locations, and each party’s respective ownership and maintenance responsibilities.
Exhibit C is unique to Dearborn and contains a copy of the “Outline of Terms” previously negotiated between the parties. These terms may be summarized as follows:
By June 30, 2026, Dearborn will sign GLWA’s model contract, triggering an immediate reduction of its operational buffer and the start of meter installation and infrastructure assessments. Dearborn will remit most of its escrow funds to GLWA, enabling GLWA to install new transmission meters and conduct condition assessments on six priority mains by 2034.
Beginning in FY2035, Dearborn’s water charges will gradually shift to the standard methodology based on demonstrated usage, fully transitioning by FY2037. After all meters are active and providing reliable data, GLWA will bill Dearborn entirely on metered consumption.
Within 30 days of contract execution, Dearborn will transfer two major water mains (36-inch and 54-inch) to GLWA for $1.
JUSTIFICATION
Approval of this Contract provides a mutually beneficial, stable, long-term framework for interactions between GLWA and the Member Partner and incorporates annual system planning volumes, pressures, and maximum day and peak hour values that better reflect future Member Partner usage.
BUDGET IMPACT
The revenues expected to result from this Contract are reflected in the FY 2027 schedule of charges.
COMMITTEE REVIEW
This matter was presented to the Board of Directors’ Legal Committee at its June 24, 2026 meeting.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.