Title
Proposed Amendment No. 1
Contract No. 2100822/SCN-0000369
Rialto Warehouse Lease Agreement
O&M
Body
Agenda of: May 27, 2026
Item No.: 2026-172
Amount: Original Lease Amount: $2,669,082.30
Proposed Amendment No. 1 1,464,000.00
Contract Total: $4,133,082.30
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: April 30, 2026
RE: Proposed Amendment No. 1
Contract No. 2100822/SCN-0000369
Rialto Warehouse Lease Agreement
Vendor: Family Associates, LLC
Status: Amendment/Change Order
MOTION
Upon recommendation of William M. Wolfson, Deputy Chief Executive Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2100822/SCN-0000369, Proposed Amendment No. 1 “Lease Agreement “Rialto Warehouse Lease Agreement” with Family Associates, LLC, for an increased cost of $1,464,000.00 for a total cost not to exceed $4,133,082.30 and an increased duration of 762 days for a total duration of 2,678 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA currently leases the warehouse facility located at 19000 Rialto Street in Melvindale, Michigan (Rialto Facility), which provides critical storage space supporting enterprise-wide operations, including both water and wastewater systems.
Since 2021, the Rialto Facility has served as a centralized location for storing large equipment, materials, and supplies necessary to support system maintenance, capital projects, and emergency response activities across GLWA’s regional service area.
The Rialto Facility offers sufficient square footage, accessibility, and site functionality to accommodate GLWA’s operational needs. Its location and configuration allow for efficient staging and deployment of resources that support ongoing operations. GLWA continues to evaluate its long-term storage strategy and facility needs; however, the Rialto Facility remains a practical and effective solution to support current operational requirements.
JUSTIFICATION
The proposed lease extension for the Rialto Facility will allow GLWA to maintain continuity of operations by preserving access to essential storage space that supports both water and wastewater operations. The facility plays a key role in enabling efficient storage, staging, and deployment of equipment and materials necessary to maintain system reliability and respond to operational needs across the enterprise.
The two-year lease term provides operational flexibility while allowing GLWA additional time to evaluate long-term storage solutions and align facility planning with broader organizational objectives. Maintaining occupancy at the Rialto Facility avoids the operational disruption and costs associated with relocating equipment and materials, while continuing to provide a cost-effective solution in the current industrial market.
Execution of this amendment supports GLWA’s enterprise-wide operational needs while preserving flexibility to assess future facility requirements and potential alternatives.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,916 days (04/01/2021 - 06/30/2026)
Proposed Amendment No. 1 762 days (07/01/2026 - 08/01/2028)
New Contract Time 2,678 days (04-01/2021 - 08/01/2028)
PROJECT ESTIMATE
Original Contract Price $ 2,669,082.30
Proposed Amendment No. 1 1,464,000.00
New Contract Total $ 4,133,082.30
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this project.
Funding Source: Operations & Maintenance (O&M) Budget
Spend Category: Buildings - All Sewer
Cost Center(s): 884124 - Logistics and Materials
Fiscal Year Amount
FY 2021 Budget (Prorated) $127,099.30
FY 2022 Budget 508,396.60
FY 2023 Budget 508,396.60
FY 2024 Budget 508,396.60
FY 2025 Budget 508,396.60
FY 2026 Budget 508,396.60
FY 2027 Budget 702,720.00
FY 2028 Forecast 702,720.00
FY 2029 Forecast (Prorated) 58,560.00
Financial Plan Forecast $4,133,082.30
Proposed Contract Amount $4,133,082.30
Variance (positive / (negative)) 0.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on May 13, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.