Title
Response to Highland Park’s March 4, 2026, Request for Decision on an “interim share change” in CSO charges per Wastewater Disposal Services Contract between GLWA and Highland Park
Body
Agenda of: March 11, 2026
Item No.: 2026-103
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: March 11, 2026
RE: Response to Highland Park’s March 4, 2026, Request for Decision on an “interim share change” in CSO charges per Wastewater Disposal Services Contract between GLWA and Highland Park
MOTION
Upon recommendation of William M. Wolfson, Interim General Counsel, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), Receives and files the March 4, 2026, City of Highland Park’s, “Request for Decision on an “interim share change” in CSO charges per Wastewater Disposal Services Contract between GLWA and Highland Park” (the Request), declines at this time to take further action on the Request; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
In 1999, as a part of the federal case of the United States of America v City of Detroit, et al., Case No 77-71100, (ED Mich), the Court entered an order approving a rate settlement agreement, often referred to as the 1999 Rate Settlement Agreement, which included an agreed allocation of capital costs incurred in the operation and maintenance of wet weather facilities (each, a Combined Sewer Overflow (CSO) facility) to alleviate CSOs. In oversimplified terms, the 1999 Rate Settlement Agreement established two CSO facility cost pools, one consisting of the City of Detroit, responsible for 83% of the CSO facility charges, and the other consisting of all other suburban customers, including Highland Park, that was responsible for 17% of the CSO facility charges. Subsequent orders of the Court in United States of America v City of Detroit, et al., Case No 77-71100, (ED Mich) See March 27, 2013, Order, p 13, indicated that unless otherwise agreed to by the customers, the provisions of the 1999 Rate Settlement Agreement remained in place following the final Order of Dismissal in that case.
In 2024, GLWA, Highland Park and the State of Michigan entered into a settlement in the separate case of City of Detroit, et al v Highland Park, WCC, No. 14-001974 CK. As a part of that settlement Highland Park became a contracted water and sewer customer of GLWA. As a part of the development of its charges, GLWA reaches out to customer communities to discuss their proposed water and sewer charges. Highland Park initially raised issues regarding those charges.
While other issues related to the charges were amicably addressed, Highland Park’s concern regarding its portion of the 17% CSO facility charge allocation pursuant to the Rate Settlement Agreement has not yet been resolved. Because the Federal Court’s Orders in United States of America vs City of Detroit, et al require agreement of GLWA’s customers before the Rate Settlement Agreement can be modified, GLWA referred Highland Park’s concerns to the One Water Partnership to create a CSO Cost Pool Task Force to review and determine whether there is customer agreement for a modification. The CSO Cost Pool Task Force is expected to meet on March 27, 2026, to take up Highland Park’s request and to consider a structure for its deliberations on that issue. In its March 4, 2026, communication Highland Park requests the Board to act independent of that task force and One Water Partnership process to “reconsider its approval of GLWA’s FY 2027 sewer charges, decide regarding Highland Park’s FY 2026 interim share change request and eliminate the illegal CSO tax that is embedded in them.”
JUSTIFICATION
The justification for the Board’s action is the subject of a privileged attorney-client communication received by the Board.
BUDGET IMPACT
There is no budgetary impact from this Resolution.
COMMITTEE REVIEW
This matter was presented directly to the Board at its March 11, 2026, meeting.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.