Title
Proposed Amendment No. 5 to Water Service Contract with Village of Romeo
Body
Agenda of: February 28, 2024
Item No.: 2024-035
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: January 29, 2024
RE: Proposed Amendment No. 5 to Water Service Contract with Village of Romeo
MOTION
Upon recommendation of David W. Jones, General Counsel, the Board of Directors (“Board”) of the Great Lakes Water Authority (“GLWA”), authorizes the Chief Executive Officer (“CEO”) to execute Amendment No. 5 to the 30-year water service contract with Village of Romeo; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On January 22, 2024, the Romeo (“Village”) Village Council agreed to the terms of Amendment No. 5 (“Amendment”) to its water service contract with GLWA.
In December 2022, the Ford Motor plant located in the Village reduced its full-time plant operations and the parties agreed to lower the contract max day and peak hour demands accordingly. By April 2023, the plant had reached the near total cessation of plant operations, further reducing the Village’s water demands. In October 2023, the Village requested that GLWA consider the near cessation of plant operations on its contract flow rates. After conducting a review and discussion of the 2023 data with the Village, the parties agreed to a reduction in the Village’s max day and peak hour flow rates in consideration of the demonstrated effect of the plant’s closure on its contract demands, and to a reduction in its estimated annual volume. Accordingly, Exhibit B, attached, has been modified to update the annual volume, minimum annual volume, max day, and peak hour values.
JUSTIFICATION
Approval of this Amendment provides a mutually beneficial, stable, long-term framework for interactions between GLWA and the Village and incorporates max day and peak hour values that better reflect their future usage.
BUDGET IMPACT
The revenues expected to result from this Amendment will be reflected in the FY 2024-2025 schedule of charges.
COMMITTEE REVIEW
This matter is being presented to the Legal Committee for consideration at its meeting on February 28, 2024.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.