Title
Proposed Amendment No. 5 to Water Service Contract with Village of Grosse Pointe Shores, a Michigan City
Body
Agenda of: February 28, 2024
Item No.: 2024-034
Amount: Revenue Contract
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: January 29, 2024
RE: Proposed Amendment No. 5 to Water Service Contract with Village of Grosse Pointe Shores, a Michigan City
MOTION
Upon recommendation of David Jones, General Counsel, the Board of Directors ("Board") of the Great Lakes Water Authority ("GLWA"), authorizes the Chief Executive Officer ("CEO") to execute Amendment No. 5 to the 30-year water service contract with Village of Grosse Pointe Shores, a Michigan City; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On December 12, 2023, the Grosse Pointe Shores ("City") City Council agreed to the terms of Amendment No. 5 ("Amendment") to its water service contract with GLWA.
On May 15, 2022, the City enacted a local, mandatory irrigation ordinance requiring all irrigation to occur between the hours of midnight and 6:00AM. In October 2023, the City requested that GLWA consider the effect of the ordinance on its contract flow rates. After conducting a review and discussion of the data with the City, the parties agreed to a reduction in the City's peak hour flow rate in consideration of the demonstrated, positive effect of the enforcement of the ordinance on its peak hour usage. No other contract values are modified by this Amendment. Accordingly, Exhibit B, attached, has been modified only to update the peak hour value.
JUSTIFICATION
Approval of this Amendment provides a mutually beneficial, stable, long-term framework for interactions between GLWA and the City and incorporates contract peak hour values that better reflect their future usage.
BUDGET IMPACT
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