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File #: 2023-427    Version: 1 Name:
Type: Resolution Status: Passed
File created: 11/9/2023 In control: Board of Directors Workshop Meeting
On agenda: 11/16/2023 Final action: 11/16/2023
Title: Resolution Regarding Approval of Schedule of Member Partner Bad Debt Recovery Credits #2023-2 Totaling $20,026,500 With Conditions Precedent Utilizing the Highland Park Bad Debt Recovery Credits Methodology
Sponsors: Nicolette Bateson
Indexes: Finance
Attachments: 1. 7B2.1 Board Letter Attachment Bad Debt Recovery 2023-427, 2. 7B3 Fully Executed Term Sheet by HP, GLWA, and SOM, 3. 7B4 Draft HP Bad Debt Credit Calculations 102323, 4. 7B5 CWW Resolution GLWA Highland Park 2023 with signature
Title
Resolution Regarding Approval of Schedule of Member Partner Bad Debt Recovery Credits #2023-2 Totaling $20,026,500 With Conditions Precedent Utilizing the Highland Park Bad Debt Recovery Credits Methodology
Body

Agenda of: November 16, 2023
Item No.: 2023-427
Amount: $20,026,500.00

TO: The Honorable
Board of Directors
Great Lakes Water Authority

FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority

DATE: October 25, 2023


RE: Resolution Regarding Approval of Schedule of Member Partner Bad Debt Recovery Credits #2023-2 Totaling $20,026,500 With Conditions Precedent

MOTION

Upon recommendation of Nicolette N. Bateson, Chief Financial Officer & Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), adopts Resolution #2023-427 to:
1. Approve the Schedule of Member Partner Bad Debt Recovery Credits #2023-2 totaling $20,026,500 with $5,026,500 for the water system and $15,000,000 for the sewer system with conditions precedent utilizing the Highland Park Bad Debt Recovery Credits Methodology;
2. Acknowledge that the following actions (collectively the "Conditions Precedent"), which provide indirect budget relief, are conditions precedent that must occur prior to the funding, application, and distribution of the credits:
a. Execution of the implementation agreements as described in the October 18, 2023 Term Sheet (attached) between the City of Highland Park, Great Lakes Water Authority, and the State of Michigan ("Term Sheet") including the successful implementation of the all-receipts trust;
b. Appropriation by State of Michigan of "a $5M grant for work to be conducted by GLWA on drinking water infrastructure" referenced in section 2.c. of the Term Sheet.";
c. Release by the State of Michigan and transfer to GLWA of "the $25M sewer infrastructure grant funds previously allocated in the FY 2023 budget to GLWA on or before December 31, 2023";
d. Payment of "$241...

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