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Ferndale negotiates lower GLWA peak-season usage factors; rate impact modest
Summary
City staff negotiated lower max-day and peak-hour values with the Great Lakes Water Authority, reducing design values and limiting the near-term bill impact; council approved the contract amendment and will reflect changes in FY27 rates.
The Ferndale City Council approved an amendment to its water-service contract with the Great Lakes Water Authority (GLWA) that recalibrates the city’s peak-season design values after staff negotiations.
Public works staff explained the amendment is a periodic reopener in the GLWA contract that uses June–August historical data and peak-hour metrics to set a municipality’s ‘‘readiness-to-serve’’ charges. Ferndale’s previously used values — a reported max day of 2.89 million gallons and a peak-hour factor of 3.10 — were adjusted in the amendment to a 2.6 max-day and a 3.03 peak-hour value.
Staff said the fixed (readiness-to-serve) portion of GLWA’s bills accounts for about 60% of a typical customer’s annual bill and that the negotiated change limits the increase to that portion to an estimated 4.6 percent relative to earlier projections. The amendment will take effect in the city’s FY27 rate structure, staff said.
Council members asked technical questions about how the values are calculated and whether changes in population, weather timing or large water users could reopen the contract; staff said they will continue operating the city’s storage and pumping strategy to manage peak fills and can reopen negotiations if a major new water user arrives.
The amendment was approved by roll call: Johnson — yes; Kelly — yes; Makolski — yes; Sabatini — yes; Leaks May — yes.
