F Flint Water Crisis Public Archive

Correspondence between

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Andy Dillon Dennis Muchmore

RE: Flint water

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{don't remember what the shone call was about, obviously Flint alternative water supplies. But, itis mat the call where you told me you were going to approve the switch. { know which date that was aru it wasn't this one. 4s for the decision making on the switch, as | rernember tt, the Flint people dernanded you ga to KWA. They (asi remember you indicated Curtis, the Drain Commissioner, Gleason, Emerson and United Wey Brown?, thought it would serve the city bast in the long run to get out of DWSD. | remember you agenized over tt and quastioned the switch in several different conversations, Ultimately you felt that the clty would be back under local governance in the future and if that’s what they wanted you understood their concerns. | alse seern to remember discussions about the County Commission wanting the switch and their advocacy in the switch as well as the Flintlabor Council, it's a long time ago, andi con't have any metes on it as we had at least five ar six conversations on this, but] think this sounds correct. You were acting a¢ State Treasurer but really keeping us mugged But, | could have the specifics on this wrong...

Flint/DWSD

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Ed Kurtz and Kevyn Orr spoke this afternoon. Ed indicated that Flint will not accept the last offer from DWSD. His formal letter is attached. | spoke with both (separately) after the call. They both indicated that they had a good conversation, and that they sincerely look forward to working with the other in good faith over the next couple years. Kevyn indicated that he would follow up with Sue McCormack, and that his direction will be that there be no more talking to the press about the issue. Ed plans to stay silent on the deal until Monday, at which time he will address the issue in a matter of fact matter, and stay away from any divisive language regarding the issue.

Flint

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If Flint is going to go into some kind of regional authority, then we need to firewall the finances of water from the general city budget. How do we keep the city from using the water system as a cash flow tool? We need to help them avoid the problem that they have been guilty of in the past of capturing water monies from customers before remittance to the Authority and using it elsewhere. | suspect that is the motivation behind their desire to split off from DWSD. If the monies go to legacy debt it will help Flint immeasurably, if general fund then they'll never get on top of the situation. Right now their legacy debt is higher than their wages for current employees and that is obviously unsustainable. | realize I'm not telling you anything you don't already know, just re-emphasizing. xxxEND_PAGE:executiveofficeemails21_b0635_1479_1479_1

Re: KWA and City of Flint. URGENT

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Follow Up Flag: Follow up Flag Status: Flagged That is the $64,000 question. DEQ is firm that KWA is better. Are they an honest broker? I have to admit the engineering firm Treasury hired (Tucker Young) didn't make their case. No one on our side (DEQ or Treasury) sided with DWSD. J was the lone hold out but I couldn't argue against the defense Flint put forward against the TY report. Sent from my iPad

RE: DWSD Letter

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lthink Ed should respond to Moflorrnick. i wouldn't have reacted quite so negatively, but then that’s me. | weudd encourage him te always stress that they are open to new proposals, but haven't seen one. Bul, lm in me position to rewrite emails. i cio think that a clean closure on both sides is warranted. it’s not like KWA wouldn't still need a negotiating posture with CWSD. What was Sue‘s resporise to the request for a last best offer? | take it she wasn’t interested, or at least didn’t feel that she could offar any more than previously done? Schenk’s about as good as you can get in pubic life, so with Sue if they dan‘t have an offer, | can't figure out what we can do more, im really surprised that DW5E hasn’t responded with a final counter, Sounds like the well is pretty poisoned (no pun intended).

Re: Flint

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Follow Up Flag: Follow up Flag Status: Flagged We grilled them an that quite a bit. There is a maximum guaranteed price on key construction items and the path allegedly presents limited risk- rural, thru areas w no gas or water lines, existing easements etc. | was the skeptic but view of my staff and deq was universal in favor of kwa. | was won over as well. | can't make a legitimate case that financially this is worse for Flint unless today's threat from Shank (DWSD will bill Flint for past capex) is real. We are sorting thru that. | see lots of political downside as well. Community is invested in this. Sent from my iPhone

KWA

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Governor, based upon today's presentations to the DEQ by the City of Flint, KWA and the engineering firm (Tucker Young) Treasury hired to vet the options as to whether Flint should stay with DWSD or join KWA, I am recommending we support the City of Flint's decision to join KWA. The City's EM, Mayor and City Council all support this decision. Dan Wyant likewise concurs and will confirm via email. We have a briefing call tomorrow morning with Dennis and John to provide more background as to why we reached this conclusion. Flint's EM wants to sign the resolution asap as the project is moving forward with or without them and their participation affects the design and the construction season is upon them. I assume DWSD will make a last ditch effort to save the customer but I will not advise them of my recommendation until we brief Dennis and John. Regards, Andy Sent from my iPad xxxEND_PAGE:executiveofficeemails21_b0623_1464_1464_1

Fwd: Flint Water Supply Alternatives

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Follow Up Fiag: Follow up Flag Status: Flagged Governor and Dennis, Attached is the recommendation from the engineers we hired to advise us on the KWA project for Genesee/Flint. As you will see, they are recommending that Flint stay with DWSD. This has ramifications that merit further discussion. Dennis and Brom, can you schedule a mtg for follow up? Thanks, Andy Sent from my iPad Begin forwarded message:

Fwd: March Treasurer's Governor's Memorandum

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Governor, Flint summary says no near term exit despite Governor and Mayor's contrary wishes. I will dig into this more deeply and report back. KWA misrepresented based on my mtg w engineering firm this week. Report I got is that Flint should stay w DWSD. reece seen nemimsnen teens Not Responsive Not Responsive xxxEND_PAGE:executiveofficeemails20_b1834_4448_4449_1 Sent from my iPad Begin forwarded message:

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