Title
Request to Transfer a 24-Inch Watermain to FCA, US, LLC on Charlevoix Avenue between Conner Avenue and Conner Lane
Body
Agenda of: September 23, 2020
Item No.: 2020-343
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: September 23, 2020
RE: Request to Transfer a 24-Inch Watermain to FCA, US, LLC on Charlevoix Avenue between Conner Avenue and Conner Lane
MOTION
Upon recommendation of Randal M. Brown, General Counsel, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA):
1) Authorizes GLWA's Chief Executive Officer (CEO) to execute a Bill of Sale or any other related documents to transfer a 24-inch watermain to FCA, US, LLC on Charlevoix Avenue between Conner Avenue and Conner Lane; and
2) Authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Through the GLWA/DWSD water main arbitration negotiations, the parties' technical teams identified a 24" watermain located under Charlevoix Avenue as a candidate for decommissioning. The Charlevoix watermain starts at Conner Lane in the City of Detroit, goes east and ends at the border of the City of Grosse Pointe. The starting point of the main falls within FCA, US LLC's (commonly known as Fiat-Chrysler) plant grounds.
As the Board was considering the Arbitration Settlement Agreement, FCA approached GLWA about putting a structure on top of the 24" watermain within its plant grounds. GLWA objected.
After further discussions between GLWA, DWSD and FCA, it was determined that the watermain within FCA's plant grounds could be transferred to FCA.
GLWA conducted an internal valuation of the watermain to be transferred. The cast iron watermain was put in service in 1919. Although the useful life is 125 years, given the desire to decommission the entire length of the watermain and th...
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