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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