Madison Heights approves water, wastewater rate increases and awards road and service contracts
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Summary
Council approved a water and wastewater rate increase effective for bills processed on or after July 1, 2026, citing pass-through charges from the Great Lakes Water Authority and infrastructure needs; the council also awarded two road-construction contracts and approved two service contract extensions.
Madison Heights — The City Council voted to adopt new water and wastewater rates and approved several contracts for roads and services during its March 9 meeting.
City Manager Melissa Marsh told council the city passes on rate increases from the Great Lakes Water Authority (GLWA) and Oakland County and recommended rates for bills processed on or after July 1, 2026: $5.01 per unit for water and $7.29 per unit for wastewater. Marsh said the FY2027 fund budget is $15.4 million and estimated that an average residential user (12 units) would see an increase of about $8.28 per quarter.
Marsh and staff explained the increase supports both the pass-through commodity charge and ongoing capital investment in water-main replacements. Council discussed an ongoing regional response to frequent water-main failures tied to supplier systems; staff reported the city is part of a task force working with neighboring municipalities and that restoration costs attributed to GLWA events are approximately $641,000 year-to-date, with 104 water-main breaks recorded since July 1.
After discussion, Mayor Pro Tem Bill Muir moved to adopt a resolution setting the new rates; the motion passed by voice vote. Staff said they will mail postcards and distribute materials to explain the change to residents and listed several planned water-main projects that the rate increase will support.
On procurement, staff recommended (and council approved) awarding the 2026 R3 residential road projects to Delicio Contracting (Clinton Township) for $1,669,954.50 and awarding major and local sectional concrete repairs to Delicio Contracting for $625,583.90; funding for those projects is programmed in the FY2027 budget subject to final budget adoption.
Council also approved a contract extension with Duall Cleaning (custodial services) and a contract extension with Sunday Building (water and wastewater contractor). A council member asked whether affiliation with a local little-league organization posed a conflict of interest; the city attorney advised that affiliation without a personal financial interest did not, in itself, require recusal.
The meeting closed with community announcements and an adjournment at 7:48 p.m.