Title
The City of Detroit Board of Water Commissioners authorizes the Director to approve a Development Reimbursement Agreement with Henry Ford Health System, for water and sewer infrastructure improvements, for a total contract not to exceed amount of $2,500,000.00 and a term of (1) year. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of October 1, 2025
Item No. 2025-235
Contract No. 6007481
Contractor: Henry Ford Health System d/b/a Henry Ford Health
Address: One Ford Place, 4A, Detroit MI 48202
Total Contract Amount: $2,500,000.00
Term: 1 year (10/1/2025 - 09/30/2026)
TO: The Honorable
Board of Water Commissioners
City of Detroit
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Development Reimbursement Agreement with Henry Ford Health System d/b/a Henry Ford Health, a Michigan nonprofit corporation
MOTION
Upon recommendation of Samuel Smalley, Deputy Director, the City of Detroit Board of Water Commissioners authorizes the Director to approve a Development Reimbursement Agreement with Henry Ford Health System, for water and sewer infrastructure improvements, for a total contract not to exceed amount of $2,500,000.00 and a term of (1) year. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND AND JUSTIFICATION
Henry Ford Health owns certain real property and improvements located in the City of Detroit, and construction is currently underway for a Future of Health Development Project (“FOH”), which will include the expansion of Henry Ford Health’s medical campus, permitting it to deliver mission-based services to more residents of and visitors to the City of Detroit and Southeast Michigan.
In connection with the Detroit Water and Sewerage Department’s (DWSD) commitment to provide new water and sewer infrastructure to support the FOH and ensure long-term reliability and compliance with local and state standards, DWSD has agreed to cover the costs for certain infrastructure improvements within the project area and to reimburse Henry Ford Health, as the work is already underway, with completion set for November 2025. Given the value of these improvements to the entire water system, DWSD believes this Agreement has merit.
The infrastructure improvements include any and all labor, equipment and materials for: (i) the installation of approximately 1,600 LF of 12-inch Ductile iron pipe including valves, fittings, testing and connections; (ii) a new water main to be constructed on Lincoln Street and Milwaukee Avenue; and, (iii) the installation of approximately 1,200 LF of 30-inch, 24-inch, 18-inch and 16-inch RCP sewer pipe on Lincoln Street, Milwaukee Avenue and Baltimore Avenue. The assets will be turned over to DWSD’s control when complete. The City of Detroit/DWSD will be named as an insured on the indemnification policy, and the infrastructure has a one-year warranty that the work is free of defects.
The anticipated cost for this water and sewer infrastructure is $3,446,897.00. DWSD will remit $2.5 million to Henry Ford Health within thirty days from the date it approves the work. Henry Ford Health is responsible for the balance.
PROCUREMENT METHOD
The proposed contract was initiated by Requisition No. 540177 and was approved by Budget on 9/30/2025. An Exception to Competitive Solicitation was submitted and approved by the Director on 9/30/25. This contract was procured as a single source contract for the reasons stated in the justification and background. DWSD did not participate in the procurement process but did approve permits for the work contemplated.
SUMMARY
A. Contract Number: 6007481
B. Contract Term: 1 year (10/1/25 - 9/30/26)
C. Total Contract Amount: $2,500,000.00
D. Funding Source: I & E Bond
E. Projected Fiscal Year (FY) Contract Expenditures:
FY25-26: $2,500,000.00
F. GL String: 5740-20334-487801-617900-900449-30129-0000-000000 - 50% Water
5831-20310-497800-617900-900447-30129-0000-000000 - 50% Sewer
This proposed contract was presented to the Board of Water Commissioners Finance Committee on October 1, 2025. Pursuant to the DWSD Procurement Policy, this contract requires BOWC approval.