George Karmo

Andy, xxxEND_PAGE:deq26_b174_1567_1569_1 It was good talking to you this morning. ¢ I’m referencing the Crain article attached related to City of Flint Water issues. As you are aware when TYJT completed its report for the State of Michigan Treasury ( assessment of Flint continuing with DWSD or partneting with Karegnondi Water Authority), we had recommended that Flint implement a program for leak detection of its water system. It was believed that the system experienced up to 50% leakage! We had indicated that the effort was necessary so that Flint could dramatically reduce the amount of water it needed to purchase from the Karegnondi Water Authority prior to designing and constructing the new pipe line. As you are aware, TYJT is knowledgeable of the Flint area water system and well experienced in conducting leak detections and water audits. We therefore ask, based on the fact that the State of Michigan maybe granting Flint some funds to do the leak detection (see attached article) that TYJT use its existing DTMB as-needed contract with the State to accomplish this task. Please let me know if you. need additional information. We will be available to immediately meet with representatives of the State and City of Flint to discuss this leak detection program. Regards, George Karmo, P.E., BCEE President ‘ Tucker, Young, J: acltetsa, Tull Inc. 615 Griswold Street Detroit, Michigan 48226 313-234-0337 office direct PPL [email protected] xxxEND_PAGE:deq26_b174_1567_1569_2 si wie oo a sgendei xxxEND_PAGE:deq26_b174_1567_1569_3

> Mr. Dillon: > We understand that Flint/Genesee County rejected DWSD's Final Offer. Was there anything in writing from Flint to that effect? If yes, is it possible to forward that to us? > > Regards, > George Karmo > ——Original Message-----

Thank you George. Sent from my iPad

> Mr. Dillon: > > We have reviewed DWSD's final offer to Flint/ Genesee County of April 24, 2013 and find it responsive to Flint's concerns and their water demand requirements. The offer appears to mitigate all the potential risks to Flint (joining KWA) identified by TYJT in our February 2013 Report to you and our subsequent meetings. > > We have one recommendation for consideration related to service redundancy (refer to bottom of page 2 and top of page 3 & Item 4, page 10 of the power point presentation material of DWSD's offer document): TYJT would recommend that Flint asks DWSD to construct the second redundant line from Imlay Station to Flint and possibly purchase the existing 72 inch Flint- Owned line from Baxter/Potter (FL-1) to the Flint WTP. This redundant line cost could either be allocated to the entire DWSD water system (common to all allocations) or the cost could be included under the new water rate to Flint (should push to be included in the common to all allocations). TYJT believes that this would result in the following benefits: > > 1. Since Flint is unable to cost- effectively bond capital, the cost of financing could be easily obtained by DWSD; > 2. DWSD has detailed and unique engineering experience for large and lengthy transmission mains design and construction; and > 3. Long term operation and maintenance of the piping would be the responsibility of one entity, thus mitigating in the future who may be responsible for water main failures (breaks, leaks, hydraulic transients, etc.). > > With the twin line, redundancy will be afforded to Flint's supply which will help in eliminating the dependency on the WTP/Flint River (except for the use of the high lift pumps) and thus generating tremendous O&M savings. > > Please let us know if need any additional support. > > Regards, > George Karmo, P.E., BCEE > TYJT/President > 313-234-0337 (direct office) > 313-402-0356 (cell)

Mr. Dillon: We have reviewed DWSD's final offer to Flint/ Genesee County of April 24, 2013 and find it responsive to Flint's concerns and their water demand requirements. The offer appears to mitigate all the potential risks to Flint (joining K WA) identified by TYJT in our February 2013 Report to you and our subsequent meetings. We have one recommendation for consideration related to service redundancy (refer to bottom of page 2 and top of page 3 & Item 4, page 10 of the power point presentation material of DWSD's offer document): TYJT would recommend that Flint asks DWSD to construct the second redundant line from Imlay Station to Flint and possibly purchase the existing 72 inch Flint- Owned line from Baxter/Potter (FL~1) to the Flint WTP. This redundant line cost could either be allocated to the entire DWSD water system (common to all allocations) or the cost could be included under the new water rate to Flint (should push to be included in the common to all allocations). TYJT believes that this would result in the following benefits: 1, Since Flint is unable to cost- effectively bond capital, the cost of financing could be easily obtained by DWSD; 2. DWSD has detailed and unique engineering experience for large and lengthy transmission mains design and construction; and 3. Long term operation and maintenance of the piping would be the responsibility of one entity, thus mitigating in the future who may be responsible for water main failures (breaks, leaks, hydraulic transients, etc.). With the twin line, redundancy will be afforded to Flint's supply which will help in eliminating the dependency on the WTP/Flint River (except for the use of the high lift pumps) and thus generating tremendous O&M savings. Please let us know if need any additional support. Regards, George Karmo, P.E., BCEE TYJT/President (direct office) B (cell) [email protected] none Original Message-----

1 xxxEND_PAGE:treasury01_b04_0379_0503_097 Headen, Frederick (T: reasury)