Title
The Board of Water Commissioners for the City of Detroit Water and Sewerage Department approves the Local System Capital Contribution Agreement between the Detroit Water and Sewerage Department and Great Lakes Water Authority, and authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote, including the execution of the Memorandum of Understanding.
Body
Agenda of June 21, 2023
Item No.: 2023-139
Amount: N/A
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary A Brown, Director, Detroit Water and Sewerage Department
RE: Local System Capital Contribution Agreement between Detroit Water and Sewerage Department and Great Lakes Water Authority.
MOTION
Upon recommendation and opinion of Gary A Brown, Director, and Samuel Smalley, Chief Operations Officer, the Board of Water Commissioners for the City of Detroit Water and Sewerage Department approves the Local System Capital Contribution Agreement between the Detroit Water and Sewerage Department and Great Lakes Water Authority, and authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote, including the execution of the Memorandum of Understanding.
JUSTIFICATION
Both Evergreen Farmington Sanitary District (EFSD) and Detroit Water and Sewerage Department (DWSD) are member partners of the Regional Sewer System. EFSD has requirements relative to compliance with its Administrative Consent Order 04995, dated August 14, 2019, (the ACO) as agreed to with the Michigan Department of Environmental Quality, now known as the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and, consequently, desires a higher maximum rate of discharge to the Regional Sewer System. DWSD and Great Lakes Water Authority (GLWA) are co-permitees on the National Pollutant Discharge Elimination System Permit MI 002282 (NPDES Permit), issued by EGLE. GLWA has requirements in the NPDES Permit to address untreated combined sewer overflows. DWSD is obligated to implement a green infrastructure program to remove storm water from the Local Sewer System pursuant to Part I. Section A.15.d.5.a and b. of the NPDES Permit with an approximate annual expenditure of $3,000,000.00.
GLWA’s Wastewater Master Plan identifies collaborative approaches for regional solutions for the mutual benefit of member partners of the Regional Sewer System.
DWSD identified a green infrastructure project that, if implemented, would remove storm water from approximately 218 acres of a residential neighborhood immediately west of the Rouge River and north of West Warren Avenue in the City of Detroit (the Far West Detroit Stormwater Improvements Project, a/k/a “Far West Project”). GLWA has identified Outfall B054 (West Warren Outfall) for improvements that, if implemented, would reduce the combined sewer overflow discharge frequency and volume from the West Warren Outfall. GLWA’s West Warren Outfall Project and DWSD’s Far West Project are jointly referred to as the West Warren Sewer Projects. Within the past
6 months, EFSD agreed to make a local system and regional system capital contribution as consideration to receive a higher maximum rate of discharge by EFSD to the Regional Sewer System. EFSD understood that DWSD and GLWA will use the funds for the design, construction assistance, and estimated construction costs based on competitive procurements for the West Warren Sewer Projects, which total an estimated $35,000,000.
Upon receipt of the aforementioned capital contribution and pursuant to the Local Capital Contribution Agreement, GLWA agrees to disburse the EFSD Local System Capital Contribution to DWSD for its design, construction assistance and estimated construction costs based on competitive procurements for the Far West Project in an amount not to exceed $31,557,845.00. EGLE agreed that the capital contribution made by EFSD for the Far West Project constitutes a part of DWSD’s obligation to spend approximately $3,000,000.00 annually on Green Infrastructure Projects under the NPDES Permit.
BUDGET IMPACT
The GLWA will hold the EFSD local contribution for the benefit of DWSD and will disperse those funds to DWSD as costs are incurred.
COMMITTEE REVIEW
This matter was presented to the Legal and Government Affairs Committee at its meeting on
June 7, 2023.