Title
Water Residential Assistance Program (WRAP) Service Delivery Partner Funding Authorization for FY 2026 and Related Contract Amendments
Body
Agenda of: May 28, 2025
Item No.: 2025-143
Amount: $4,608,500
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: May 28, 2025
RE: Water Residential Assistance Program (WRAP) Service Delivery Partner Funding Authorization for FY 2026 and Related Contract Amendments
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer\Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA),
Authorize funding for Water Residential Assistance Program (WRAP) service delivery partners totaling $4,608,500 funded from the regional system WRAP dollars as presented in the FY 2026 WRAP Funding Report and approved FY 2026 budget, with the following allocation:
a. For Area 1 - City of Detroit, an amended contract with Wayne Metropolitan Community Action Agency in the amount for of $1,251,200;
b. For Area 2 - City of Flint, a new contract with Genesee County Community Action Resource Department in the amount of $27,000;
c. For Area 3 - Wayne County (Not Including Detroit) and Monroe County an amended contract with Wayne Metropolitan Community Action Agency for $1,144,000;
d. For Area 4 - Oakland County and Area 6 - Washtenaw County an amended contract with United Way for Southeastern Michigan for a total of $1,313,700, with the amount for of $1,250,000 for Area 4 and $63,700 for Area 6;
e. For Area 5 - Macomb, St. Clair, and Lapeer Counties, Macomb Community Action, an amended contract in the amount of $872,600;
and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Upon the approval of the Great Lakes Water Authority (GLWA) FY 2026 & FY 2027 Biennial Budget and FY 2026 charges by the Board of Directors, GLWA staff prepares an allocation of Water Residential Assistance Program funding by Service Delivery Partner GLWA. Service Delivery Partner contracts are in place, however the dollar amount of that contract is updated each year with the new WRAP funding amount based upon the approved budget. This report serves as a request for authorization to allocate FY 2026 WRAP funding by Service Delivery Partner and a request to amend the contracts for those amounts accordingly.
JUSTIFICATION
The annual WRAP budget is calculated at one-half of one percent (0.5%) of the regional system operating revenue as authorized in GLWA’s founding documents. Funding the WRAP program was a condition precedent to the establishment of authority and continues as required as part of the approved annual budget adopted by the GLWA Board of Directors.
The attached “FY 2026 Water Residential Assistance Program (WRAP) Funding Report” (Attachment 1) provides further background, analysis and calculations to support the WRAP annual budget and allocation of funding among service delivery partners and areas for FY 2026. Attachment 2 included with this Board letter summarizes those allocations by service delivery partner as requested in the proposed resolution.
BUDGET IMPACT
The GLWA Board of Directors approved the FY 2026 & FY 2027 biennial budget on February 26, 2025. These WRAP allocations were included as part of the approved budget.
COMMITTEE REVIEW
This matter was reviewed by the Audit Committee at its meeting on May 2, 2025. At the time of the Audit Committee meeting, the Affordability & Assistance team was having discussions with Genesee County Community Action Resource Department (GCCARD) to provide WRAP services for the City of Flint, as well as conversations with United Way for Southeastern Michigan (UWSEM) to provide WRAP services for Washtenaw County. Two options were presented to the Audit Committee for approval recapped below and as outlined in the attached Audit Committee cover memo (Attachment 3).
1. Maintain the current alignment of the WRAP service areas; OR
2. Realign the service areas to reflect the new relationships with GCCARD and UWSEM. The details of these options are outlined in the attached WRAP Funding Report.
Subsequent to the Audit Committee meeting, and based on discussions with Wayne Metro, GCCARD, and UWSEM, the recommendation is to proceed with option 2.
The Audit Committee unanimously recommended that the Great Lakes Water Authority Board of Directors approve the WRAP Service Delivery Partner Funding Authorization for FY 2026 and related contract amendments based on the two options above and authorize the CEO to take such other action as may be necessary to accomplish the intent of this vote.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.