Great Lakes Water Authority - Comprehensive Analysis Report

Summary

The Great Lakes Water Authority (GLWA) is a pivotal regional water and wastewater utility established in 2016 through a collaboration between the City of Detroit, the counties of Wayne, Oakland, and Macomb, and the State of Michigan. This formation aimed to provide a unified voice in the management of one of the largest water and wastewater utilities in the United States. GLWA's mission is to "exceed our customer's expectations by utilizing best practices in the treatment and transmission of water and wastewater, while promoting healthy communities and economic growth." Their vision is to be the "provider of choice dedicated to efficiently delivering the nation's best water and sewer services in partnership with our customers" through regional collaboration.

GLWA serves approximately 3.8 million residents across 112 communities in eight Southeast Michigan counties, providing drinking water treatment and distribution services to nearly 40% of Michigan's population. It also delivers safe wastewater services to nearly 30% of the state, covering the City of Detroit and 78 communities. The Authority plays a crucial role in the region's public health, safety, and economic prosperity by managing critical infrastructure formerly operated by the Detroit Water and Sewerage Department (DWSD).

1. Strategic Focus & Objectives

Core Objectives

GLWA's strategic focus is on delivering high-quality, reliable, and affordable water and wastewater services. Key objectives include:

Increasing the resiliency of water and wastewater systems.

Adhering to long-term planning recommendations.

Actively soliciting stakeholder input.

Ensuring efficient delivery of services, robust asset management, and effective capital improvement program execution.

Fostering peer-to-peer knowledge sharing among member communities.

Maintaining water charge stability and equity for member partners.

Achieving overall improved performance and resiliency, environmental compliance, long-term planning, and member partner satisfaction.

Specialization Areas

GLWA specializes in large-scale water treatment and distribution, as well as wastewater collection and treatment. Its unique value proposition lies in its regional collaborative governance model, ensuring diverse stakeholder input in managing essential public services. The Authority’s expertise extends to advanced biosolids management and smart water platform technologies.

Target Markets

GLWA's primary target market comprises residential, commercial, and industrial customers within its service area across 112 communities in eight Southeast Michigan counties for drinking water, and 78 communities for wastewater services. Its market positioning strategy emphasizes regional collaboration, infrastructure investment, and technological innovation to deliver reliable, high-quality, and affordable services.

2. Financial Overview

Funding History

GLWA's financial operations are supported by charges for drinking water and sewer services, covering operational, maintenance, and debt service costs.

Inaugural Bond Sale (2016): GLWA executed a $1.3 billion bond sale, achieving $309.1 million in savings. The Authority assumed approximately $4 billion of DWSD's debt.

Recent Bond Transactions: In June, GLWA issued $528.2 million of water system bonds and $435.1 million of sewer system bonds to fund capital improvements. A recent bond transaction also secured $250 million in new money for capital improvements and $46 million in cashflow savings through refinancing eligible bonds.

Bond Ratings: GLWA has received upgrades to its bond ratings from all three major bond rating agencies, achieving 'AA' category ratings from two agencies and an affirmation of its 'AA' rating from the third.

Five-Year Financial Plan: Established in 2017 with forecasts to FY 2023, this plan emphasizes cost control, transparency, and strong financial management.

Budgetary Control: In FY 2019, annual increases in both drinking water and sewerage budgets were held to one percent, maintaining a commitment to a four percent maximum increase to its revenue requirement. GLWA's system-wide charge increase has historically remained below the Consumer Price Index for Utilities (CPI-U).

Capital Assets: GLWA's net capital assets, after depreciation, total $4.5 billion, with $1.9 billion in the Water Fund and $2.6 billion in the Sewage Disposal Fund.

Annual Revenue: The estimated annual revenue is approximately $255 million.

Lease Agreement with City of Detroit: A 40-year lease agreement allocates $50 million per year to the City of Detroit for capital improvements to its retail system and/or its share of enhancements to the regional system. These lease payments must be used for water purposes.

3. Product Pipeline

For GLWA, "Product Pipeline" refers to critical infrastructure projects and system-wide operational enhancements aimed at ensuring the delivery of high-quality water and wastewater services.

Capital Improvement Plan (CIP): The FY23-27 CIP includes 182 projects, representing an investment of approximately $1.73 billion over five years, with a 10-year total of $3.26 billion. These projects focus on improving system reliability, redundancy, and operational efficiency, and protecting public health and safety. The CIP is updated annually using an updated project scoring methodology for transparent decision-making.

Biosolids Dryer Facility (BDF):

Description: The largest Biosolids Dryer Facility in the United States.

Development Stage: Inaugurated in 2016.

Target/Condition: Processes 700 million to 1.1 billion gallons of solids annually, converting 70% of biosolids into "Class A Exceptional Quality" fertilizer.

Features/Benefits: Retirement of six incinerators, reducing carbon dioxide equivalent emissions by approximately 56%, and lowering particulate, nitrogen oxides, and carbon monoxide emissions. Significantly reduces odors and truck traffic.

Wastewater Master Plan (WWMP):

Description: Comprehensive regional plan to ensure the wastewater system meets current and future needs for 40 years.

Development Stage: Initiated in 2017.

Target/Condition: Environmentally sustainable, reliable, and cost-efficient wastewater services.

Water Master Plan:

Description: Regional plan for water management.

Development Stage: Completed in 2015, covering July 2015 to June 2034.

Infrastructure Condition Assessments:

Description: Pilot program to assess water transmission mains and a valve exercising program.

Development Stage: Ongoing.

Target/Condition: Locating, inspecting, evaluating, exercising, and repairing thousands of valves to improve system reliability.

4. Technology & Innovation

Technology Stack

GLWA utilizes advanced technologies to enhance its water and wastewater management.

Biosolids Dryer Facility (BDF): This facility employs drying technology for resource recovery, converting wastewater biosolids into fertilizer, and significantly reducing environmental impact.

Regional Smart Water Platform (AURA):

Core Platforms/Technologies: A Geographic Information System (GIS)-based platform developed by Aquasight.

Proprietary Developments: Integrates standard data services, analytics, and advanced artificial intelligence (AI)-based insights.

Technical Capabilities: Incorporates built-in GIS boundaries with real-time data from over 5,965 total-coliform and bacteria sampling sites, 695 corrosion control and turbidity sites, and 3,100 lead and copper sampling sites. It also monitors 334 flow and pressure meter assets and integrates a live-weather radar system.

Benefits: Aids in pinpointing issues in the distribution system, optimizing the entire system, and detecting deterioration as water flows through the network.

Early-Warning Water Monitoring System: Employs high-tech sensor equipment at three intakes for real-time source water quality information, detecting changes like oil spills or chemical leaks, and allowing for immediate treatment adjustments.

Water Resource Recovery Facility (WRRF): Formerly a Wastewater Treatment Plant (WWTP), GLWA is transitioning this facility to produce its own energy for operations, demonstrating a commitment to energy efficiency. The facility has a maximum wastewater treatment capacity of 1890 million gallons per day.

5. Leadership & Management

Executive Team

Suzanne R. Coffey, Chief Executive Officer:

Professional Background: Became CEO on June 23, 2022, after serving as Interim CEO for nearly a year. Previously, she was GLWA's Chief Planning Officer since August 2015, also holding this role at DWSD. She spent 12 years as a manager in Oakland County's Water Resources Commissioner's office and was integral to the DWSD-GLWA transition efforts. Ms. Coffey is a licensed professional engineer in Michigan.

Notable Achievements: Championed GLWA's asset management, capital improvement program execution, and long-term planning efforts, including the Wastewater Master Plan.

Cheryl Porter, Chief Operating Officer, Water & Field Services:

Professional Background: Began her career as a Junior Chemist at DWSD and advanced to Water Production and Operations Manager. As COO of DWSD, she was part of the team that established GLWA in 2016. Holds a BS from the University of Michigan, an MBA from Madonna University, and a Juris Doctor from the University of Detroit Mercy's School of Law.

Key Contributions: Maintains State of Michigan operator certifications for Water Distribution (S-3) and Complete Treatment (F-1). Under her direction, GLWA's Water Works Park received the 2019 Directors Award for Water Treatment and the prestigious President's Award in 2020.

Ali Khraizat, CIP Director:

Professional Background: Holds the Director of Capital Improvement Planning role.

Key Contributions: Leads GLWA's Capital Improvement Planning efforts, focusing on system resiliency, long-term planning, and stakeholder engagement.

Jaye Quadrozzi, Vice-Chairperson, Board Representative for Oakland County:

Professional Background: An attorney with over 25 years of experience in complex commercial litigation. She has been an Oakland County representative on the Huron-Clinton Metropolitan Authority Board of Commissioners since 2013. Ms. Quadrozzi earned a Bachelor of Arts in philosophy and a Juris Doctor from the University of Michigan.

Notable Achievements: Named to Michigan Lawyers Weekly's "Influential Women of Law" Class of 2024. Represented Oakland County in the City of Detroit bankruptcy case.

Freman Hendrix, Board Secretary, Board Representative for the City of Detroit:

Professional Background: Extensive experience in municipal government, finance, and real estate, serving as Deputy Mayor and Chief of Staff for former Detroit Mayor Dennis Archer.

Key Contributions: Led strategic policy development and assisted Detroit in achieving its first balanced budget in decades and an upgraded national bond rating.

Recent Leadership Changes

Suzanne R. Coffey was appointed Chief Executive Officer on June 23, 2022, following her role as Interim Chief Executive Officer for approximately one year. As of January 1, 2026, the GLWA Board of Directors elected new officers: John J. Zech as board chair, Jaye Quadrozzi as vice chair, and Freman Hendrix as secretary.

6. Talent and Growth Indicators

Hiring Trends and Workforce

GLWA currently has 828 employees. The company experienced a 7% employee growth rate in the past year. The Great Lakes Water Authority was initially projected to have approximately 900 employees at its inception. The organization’s focus on regional collaboration and continuous improvement implies a commitment to retaining and developing its workforce.

7. Social Media Presence and Engagement

Digital Footprint

GLWA actively maintains a digital presence across platforms such as Twitter and Facebook, using the handle @glwatermi. The authority uses these channels to disseminate updates, fact sheets, and podcasts, fostering transparency and public education. Their website features an emergency banner to communicate critical system information, like boil water advisories, to the public.

8. Recognition and Awards

Industry Recognition

GLWA has received several significant awards and recognitions:

Utility of the Future Today Recognition: Awarded for four consecutive years by the National Association of Clean Water Agencies (NACWA), Water Environment Federation (WEF), Water Research Foundation (WRF), and the WateReuse Association. This recognition highlights GLWA's innovative technologies and pioneering practices, particularly in resource recovery, and acknowledges its organizational culture supporting Effective Utility Management and the operation of its Biosolids Dryer Facility.

Excellence in Management Gold Award (NACWA): Received in 2021, this award recognizes public clean water utilities for successfully implementing and sustaining programs that address management challenges. GLWA was one of only five utilities in the U.S. to receive this honor, specifically recognized for its commitment to sustainable programs exemplifying the 10 Attributes of Effectively Managed Water Sector Utilities, including its Capital Improvement Plan and Asset Management initiatives.

President's Award from the Partnership for Safe Water (PSW): GLWA's Water Works Park received this award in 2020, and the Southwest Water Treatment Plant received it in 2023.

American Council of Engineering Companies (ACEC) Awards: The Biosolids Dryer Facility received an Honor Award in the 2018 Engineering Excellence Awards Competition and a design award from the ACEC of Michigan.

9. Competitive Analysis

Major Competitors

As a regional public water and wastewater authority, GLWA does not operate in a traditional competitive market like private companies. Its "competitors" are more accurately considered peer utilities or benchmarks for operational excellence and service delivery. Key entities in related utility sectors that could serve as points of comparison or indirect competition for resources, talent, and regulatory compliance effectiveness include:

DTE Energy Company: A major energy utility in Michigan that, while not a direct water competitor, operates large-scale infrastructure and manages regulatory compliance.

Boston Water And Sewer Commission: A large municipal water and sewer authority that can be benchmarked for operational efficiency, service quality, and infrastructure management.

Other Local Municipal Water Departments: Various smaller municipal water departments within the Great Lakes region that GLWA collaborates with but also sometimes serves.

GLWA's unique structure, built on regional collaboration, distinguishes it from typical market competitors, emphasizing partnership over direct competition.

10. Market Analysis

Market Overview

The Great Lakes region's water and wastewater utility market is defined by vast freshwater resources, but it faces challenges from aging infrastructure, climate change impacts, and evolving regulatory requirements.

Total Addressable Market Size: Public water supplies in the Great Lakes Basin accounted for 5,165 million gallons per day (mgd) withdrawn in 2020, with 575 mgd consumed daily.

Growth Potential: Overall water usage in the Great Lakes region is reportedly decreasing due to conservation and management efforts.

Key Market Trends: The industry is increasingly focused on sustainable infrastructure, resource recovery (e.g., converting biosolids to fertilizer), and advanced monitoring technologies. Regional collaboration is a critical trend for addressing complex water challenges effectively.

Market Challenges and Opportunities: Challenges include deteriorating water quality from stagnation or aging infrastructure, and pressure fluctuations due to transmission line breaks. Opportunities lie in continued investment in infrastructure upgrades, implementing innovative treatment methods, and leveraging smart water platforms for efficiency and resiliency. GLWA’s Biosolids Dryer Facility and AURA platform exemplify these opportunities.

11. Strategic Partnerships

Regional collaboration is fundamental to GLWA's operational philosophy.

Member Partners: GLWA works with its 127 member municipalities across eight Southeast Michigan counties, viewing them as full partners. Collaborative forums are established to discuss wastewater, stormwater, green infrastructure, and water recreation objectives.

City of Detroit: The 40-year lease agreements with the City of Detroit for the operation of regional water and wastewater systems are foundational to GLWA's structure and existence.