Title
Great Lakes Water Authority Settlement Policy
Body
Agenda of: February 14, 2018
Item No.: 2018-615
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Randal M. Brown, General Counsel
DATE: February 12, 2018
RE: Great Lakes Water Authority Settlement Policy
MOTION
Upon recommendation of Randal M. Brown, General Counsel, the Board of Directors (Board) of the Great Lakes Water Authority ("GLWA") authorizes and adopts the attached settlement policy ("Settlement Policy") for resolving claims, administrative proceedings, mediations, arbitrations, and litigation ("Actions"):
(1) For and against GLWA ("GLWA Action(s)"); and
(2) Against the City of Detroit and/or the Detroit Water and Sewerage Department ("DWSD"), which allege liabilities in existence on or before December 31, 2015 and were transferred and/or assumed by GLWA, pursuant to Article IV of Regional Sewage Disposal System Lease and/or the Regional Water Supply System Lease ("DWSD Action(s)").
JUSTIFICATION
Currently, GLWA does not have a policy outlining the authority of GLWA's staff to settle claims and lawsuits without the Board's approval. This issue became relevant after the Board learned of two lawsuits, Michigan Warehousing v City of Detroit and United House of Prayer v City of Detroit in which GLWA's General Counsel recommended GLWA contribute to the settlement. To avoid any ambiguity in the GLWA staff's authority, Board Member Robert Daddow presented a proposed policy. GLWA's General Counsel used the framework of Board Member Daddow's proposed policy to draft the attached policy.
In drafting the attached policy, GLWA's General Counsel asked water supply and waste collection general counsels across the country for details on their respective settlement policies. The settlement authority granted without Board approval to others in GLWA's service sector ranged from $0.00 to $500,000.00. Many of the general counsels wis...
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