Red Run 30 year contract in 2014
Contracts between Oakland County and Macomb County
via the Detroit Water and Sewage Department for stormwater
How does this fit into a Regional Water Authority
and who exactly pays the bill ?
When and if The Great Lakes Water and Sewer Authority (GLWA)
ever occurs, how does the lease operate for Warren, Michigan ?
Oakland County stormwater and CSO flows into the Clinton River
(via the Red Run in Warren,MI) and dumps into Lake St. Clair.
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Agenda of January 21, 2014
Item No. 13-0569
Amount: Revenue Contract Amendment No. 2
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Sue F. McCormick, Director
Water and Sewerage Department
DATE: January 21, 2014
RE: Proposed Amendment No. 2 to
Water Service Contract with
George W. Kuhn Drainage District
MOTION: Upon recommendation of Sue F. McCormick, Director,
the Board of Water Commissioners authorizes the Director,
upon approval and execution by the wholesale water customer,
to execute Amendment No. 2 to the 30-year water
service contract with the George W. Kuhn Drainage District.
This Amendment will amend the terms of the existing
water service contract between the parties,
and also authorizes the Director to take such other action as
may be necessary to accomplish the intent of this vote.
It is therefore requested that the Board of Water Commissioners
authorize the Director to enter into this contract amendment.
On November 19, 2013,
the George W. Kuhn Drainage District (“Customer”)
Board agreed to the terms of Amendment No. 2 (“Amendment”)
to the Water Service Contract with the City of Detroit.
This Amendment is the second of several regularly occurring
amendments as mandated by the terms of the standard
30-year water service contracts with DWSD’s wholesale customers.
Pursuant to Section 5.07 of the contract, DWSD
and the Customer agree to affirm or modify the
projected annual volume, pressure range,
and maximum day and peak hour values
(collectively, the “Values”) at year 2 of the contract,
year 5 of the contract, and every 5 years thereafter.
In this Amendment, the Customer has agreed to modify
the Values for the 2014 to 2018 period as
stated in the attached Exhibit B.
In addition, this Amendment incorporates new or
modified contract language that was negotiated
in October 2011 by DWSD through the
Technical Advisory Committee outreach process to
address several contract provisions that DWSD
and its customers believed required expansion
The language set forth in this Amendment
is identical to the language proposed in the
24 amendments that were approved by the
Board of Water Commissioners in February 2013.
The substantive changes are summarized as follows:
Establishes a new defined term, “Allocation Flow Rate”,
for a process that existed under the previous contract language,
but was not specifically defined.
The bulk of the modifications occur in this section.
In summary, the modifications provide:
a. Revised time lines throughout the section
to conform to actual practice;
b. A new time line for the annual notification of any
alleged customer violation of the maximum flow rate;
c. For the establishment of a meeting procedure to
validate an alleged flow rate violation and negotiate a remedy;
d. Clear guidelines for work group review and
recommendation on all flow rate violations;
e. Assurance that DWSD and the customer have the
right to present all relevant information during
the flow rate violation review process;
f. For the utilization of the new defined term,
“Allocation Flow Rate”, to describe a
previously existing process; and
g. For DWSD to apply the remedy for a flow rate violation
from the date of the first violation or some subsequent date.
Adds a mandate for DWSD review of customer construction
that may impact DWSD infrastructure.
This Amendment will amend the terms of the
existing water service contract between DWSD
and the Customer
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