Title
The Board of Water Commissioners for the City of Detroit Water and Sewerage Department Approval of the 2018 Memorandum of Understanding ("2018 MOU") between the Detroit Water and Sewerage Department and the Great Lakes Water Authority.
Body
Agenda of June 20, 2018
Item No. 18-0138
Amount: N/A
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Debra N. Pospiech, Esq., Chief General Counsel, Detroit Water and Sewerage Department
RE: Approval of the Memorandum of Understanding ("2018 MOU") between the Detroit Water and Sewerage Department (DWSD) and the Great Lakes Water Authority (GLWA)
MOTION
Upon recommendation of Thomas Naughton, Chief Financial Officer (CFO) and Debra N. Pospiech, Esq., General Counsel, the City of Detroit Board of Water Commissioners:
1) Authorizes DWSD's Director, CFO and General Counsel to finalize, and the Director to execute on behalf of the DWSD, the 2018 Memorandum of Understanding ("MOU") between the DWSD and the GLWA;
2) Notes that five (5) votes are necessary for approval of this Resolution;
3) Notes that DWSD and GLWA shall create at a minimum four (4) binders including the 2018 MOU and supporting documentation. The binders shall be retained by both parties' CFOs and General Counsel and kept in their permanent storage; and
4) Authorizes the Director, CFO and General Counsel to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The concept of formation of a regional water authority arose as a part of the City of Detroit's Chapter 9 Bankruptcy. The formation of GLWA was discussed during mediation proceedings held as a part of the bankruptcy case. On June,12, 2015, the City of Detroit and GLWA entered into a Regional Water Supply Lease, a Regional Sewage Disposal Lease (collectively the "Leases") and a Water and Sewer Services Agreement ("WSSA"). On January 1, 2016, the Leases and WSSA became effective and govern the relationship betw...
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