The regional authority will serve nearly 4 million customers
In a historic milestone, southeast Michigan’s first-ever regional water authority began operations Jan. 1, 2016. The Great Lakes Water Authority (GLWA) will provide wholesale customers throughout seven Southeast Michigan counties water and sewer service, and make capital improvements to the existing system, which it is now leasing from the City of Detroit for $50 million per year for the next 40 years.
“This is a historic moment for our region,” said Robert Daddow, chairman, GLWA Board. “The Great Lakes Water Authority is a testament to regional collaboration and cooperation. It took a lot of effort from the counties, the City of Detroit and other partners to get to this point. I am thrilled that we are advancing, and believe that there are lots of opportunities to look forward to this new year.”
The Detroit Water and Sewerage Department (DWSD) will maintain responsibility for local water and sewer infrastructure serving Detroit residents. All communities in the system will remain responsible for the collection of water bills from individual accounts within their municipalities.
“The standup of GLWA allows us to make improvements in our infrastructure that we have previously not had the funds to make,” said Gary Brown, Director, DWSD. “With the funds from the lease, we can focus our attention to updates and improvements from old water mains, to customer service and beyond. When the city’s system is improved, the benefits go beyond Detroit—we as a region all benefit.”
Satisfaction of Conditions Precedent
Prior the start of operations, the GLWA board declared that all conditions precedent outlined in the memorandum of understanding and the lease agreement had been satisfied. These conditions included the transfer of wholesale contracts from DWSD to GLWA, and 51 percent voluntary bondholder consent.
In an overwhelming consensus, 100 percent of communities voluntarily transferred their wholesale water and sewer contracts from DWSD to GLWA. Additionally, in early December the authority announced that it had well exceeded the 51 percent voluntary bondholder consent, achieving 67 percent. As a result, all of the outstanding DWSD debt will be assumed by GLWA.
“We are incredibly proud of what we have been able to accomplish thus far, and look forward to continuing to optimize the system for all users,” said Sue McCormick, CEO, GLWA. “This authority benefits the region as a whole. In the coming year you can expect to see new capital improvements, the start up of the Water Residential Assistance Program and the release of a Water Master Plan, developed in conjunction with our customer communities, which will serve as a blueprint for making the right capital investments for the regional water system over the next decade.”
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