Title
Contract No. 2300247
Approval for Water Residential Assistance Program (WRAP) Service Delivery Partner - Wayne Metropolitan Community Action Agency
Body
Agenda of: May 24, 2023
Item No.: 2023-121
Amount: $4,647,493
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: May 24, 2023
RE: Contract No. 2300247
Approval for Water Residential Assistance Program (WRAP) Service Delivery Partner - Wayne Metropolitan Community Action Agency
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer and Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into a one-year contract with an additional four (4) one-year options to renew Contract No. 2300247, at the same terms and conditions, to be exercised and approved by the CEO immediately following approval of the Budget for Water Residential Assistance Program (WRAP) Service Delivery Partner - Wayne Metropolitan Community Action Agency; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Water Residential Assistance Program (“WRAP”) provides assistance to qualifying low-income residents served by the Great Lakes Water Authority’s (“GLWA”) Member Partners through bill credits, arrearage payments and conservation measures such as minor plumbing repairs. The program is funded at an amount equal to one half of one percent (0.5%) of GLWA budgeted revenues with DWSD contributing additional local funding for the City of Detroit. WRAP is administered through local Service Delivery Partners such as County of Macomb (Macomb Community Action), United Way for Southeastern Michigan and, Wayne Metropolitan Community Action Agency.
The Program serves the entire GLWA service area which consists of and is defined for purposes of this Contract as follows:
Area 1: City of Detroit
Area 2: City of Flint
Area 3: Wayne (not including Detroit), Washtenaw, and Monroe Counties
Area 4: Oakland County
Area 5: Macomb, St. Clair, and Lapeer Counties
JUSTIFICATION
In March 2020, GLWA engaged Public Sector Consultants (PSC) to evaluate WRAP. One of the objectives identified was: “Codify decentralized program delivery model to expand direct assistance by community action agencies in Macomb and Oakland counties”. Since then, individual contracts with County of Macomb (Macomb Community Action), United Way for Southeastern Michigan and, Wayne Metropolitan Community Action Agency have been secured. All three contracts are set to expire on June 30, 2023. A new contract is proposed which will provide continuity of WRAP Services to Area 1, Area 2, and Area 3, Wayne, Washtenaw, and Monroe Counties and the City of Flint, serviced by Wayne Metropolitan Community Action Agency.
The new, proposed contract with Wayne Metropolitan Community Action Agency for WRAP Service Delivery in Area 1, Area 2, and Area 3 is for an initial term of one-year and provides for an additional four (4) one-year options to renew the contract, at the same terms and conditions, to be exercised and approved by the CEO immediately following approval of the Budget.
Because the WRAP amount available varies based on budgeted annual revenues, the proposed contract is structured with annual renewals in order to be able to update the dollar amount to align with GLWA’s adopted budget.
Table 1 (attached) provides the FY24 WRAP Budget by Area. The budget includes both the service delivery partner fee (not to exceed 15%) as well as amounts for payment assistance and conservation efforts. Note that the funds set aside for Area 1 (Detroit) are to be used in accordance with the DWSD Lifeline Policy and the contact between DWSD and Wayne Metro and are not constrained by the Administrative, Direct Assistance and Conservation breakdown of funding.
BUDGET IMPACT
The funding of this contract is paid from the budgeted WRAP funds each year and do not impact the annual budget.
COMMITTEE REVIEW
This matter was reviewed by the Audit Committee at its meetings on March 24, 2023 and on April 28, 2023. The Audit Committee unanimously recommends that the GLWA Board authorizes the CEO to enter into a one-year contract with an additional four (4) one-year options to renew Contract No. 2300247, at the same terms and conditions, to be exercised and approved by the CEO immediately following approval of the Budget for Water Residential Assistance Program (WRAP) Service Delivery Partner - Wayne Metropolitan Community Action Agency.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.