Title
Authorization to Apply Member Partner Bad Debt Recovery Credits #2023-2 Totaling $20,026,500 Based Upon Achieving Satisfaction of Conditions Precedent Related to Highland Park Bad Debt Recovery
Body
Agenda of: June 26, 2024
Item No.: 2024-231
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 26, 2024
RE: Authorization to Apply Member Partner Bad Debt Recovery Credits #2023-2 Totaling $20,026,500 Based Upon Achieving Satisfaction of Conditions Precedent Related to Highland Park Bad Debt Recovery
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA):
1) Approves the Authorization to Apply Member Partner Bad Debt Recovery Credits #2023-2 Totaling $20,026,500 Based Upon Achieving Satisfaction of Conditions Precedent Related to Highland Park Bad Debt Recovery noting that the City of Highland Park received debt forgiveness through the settlement agreement and therefore is not due any additional credits; and
2) Authorizes staff to apply the above credits to the June 2024 services which are billed and due at varying dates after July 1, 2024; and
3) Authorizes staff to withhold the above credit to any community that has a past due balance that is related to the Highland Park matter until such amount is paid in full; and
4) Authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
A comprehensive settlement agreement between the State of Michigan, the City of Highland Park and GLWA has now been approved and executed by all parties and resolves many years of litigation between the Detroit Water & Sewerage Department, then the Great Lakes Water Authority, and Highland Park. This follows an October 2023 Term Sheet which outlined the terms of the global resolution.
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