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File #: 2018-615    Version: 1 Name:
Type: Resolution Status: New Business
File created: 2/12/2018 In control: Board of Directors Workshop Meeting
On agenda: 2/14/2018 Final action:
Title: Great Lakes Water Authority Settlement Policy
Sponsors: Randal Brown
Indexes: General Counsel
Attachments: 1. GLWA Proposed Settlement Policy
Related files: 2018-629

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 wished their settlement authority was higher.

 

In addition, GLWA’s General Counsel reviewed prior settlements by GLWA. A majority of the settlements were below $250,000.00.

 

Last, the Settlement Policy includes reporting requirements by the GLWA General Counsel on actions that impact GLWA.

 

BUDGET IMPACT

The Settlement Policy does not impact the GLWA’s budget.

COMMITTEE REVIEW

This matter is being presented directly to the Board.

SHARED SERVICES IMPACT

The Settlement Policy does not impact the Shared Services Agreement.