Correspondence between

Importance: High Please see the attached.

Harvey: Attached is a copy of the State Treasurer’s letter responding to one recently received from the Flint Mayor and City Administrator. It will be posted in todays’ mail. Thanks. Fred xxxEND_PAGE:treasury01_b40_7317_7621_044 [-S-I¢ STATE OF MICHIGAN RICK SNYDER EXECUTIVE OFFICE BRIAN GALLEY GOVERNOR LANSING UT, GOVERNOR PROCLAMATION DECLARATION OF EMERGENCY WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the state of Michigan in the Governor; and WHEREAS, under the Emergency Management Act, Act No. 390 of the Public Acts of 1976, as amended, MCL 30.401 to 30.421, the Governor is responsible for coping with dangers to this state or the people of this state presented by a disaster or emergency or threat thereof, and may issue executive orders and proclamations, having the force and effect of law to implement the Act; and WHEREAS, under Section 3 of the Emergency Management Act, 1976 Public Act 390, MCL 30.403, the Governor shall, by executive order or proclamation, declare a state of emergency if the Governor finds that an emergency has occurred or that the threat of an emergency exists; and WHEREAS, on April 25, 2014 the City of Flint, Michigan switched from the Detroit water system to the Flint River as a water source, the harmful effects of untreated water struck the city's water infrastructure, causing leaching of lead into the water which caused damage to the water system and potential negative health impacts to the citizens; and WHEREAS, the area affected includes parts of the City of Flint, within the County of Genesee; and WHEREAS, the damaged water infrastructure and leaching of lead into the city's water caused damage to public and private water infrastructure, and has either caused or threatened to cause elevated blood lead levels, especially in the population of children and pregnant women, and causing a potential immediate threat to public health and safety and disrupting vital community services; and WHEREAS, from October 1, 2015 to this date, the County of Genesee and the City of Flint have taken a number of actions to cope with the situation, including but not limited to, switching back to the Detroit water system on October 16th, declaring local states of emergency, activating the emergency response and recovery aspects of their emergency operations plan, marshaling GEORGE W. ROMNEY BUILDING ¢ 111 SOUTH CAPITOL AVENUE «* LANSING, MICHIGAN 48902 www.michigan.gov xxxEND_PAGE:treasury01_b40_7317_7621_045 and distributing required resources on a city-wide level, and issuing emergency public information and bulletins; and WHEREAS, local resources have been insufficient to address the situation, and additional assistance from voluntary organizations and the state is required to protect public health, safety, and property, and to lessen or avert the threat of more severe and long lasting impacts to the community; NOW, THEREFORE, I, RICHARD D. SNYDER, Governor of the state of Michigan, pursuant to the Constitution of the state of Michigan and provisions of Act No. 390 of the Public Acts of 1976, as amended, do hereby proclaim that a state of emergency exists in the aforementioned county and municipality; and FURTHER, the Emergency Management and Homeland Security Division of the Department of State Police shall coordinate and maximize all state efforts, and may call upon all state departments to utilize resources at their avail to assist in the emergency area pursuant to the Michigan Emergency Management Plan; and FURTHER, termination of this emergency will occur at such time as the threats to public health, safety, and property caused by the emergency no longer exist and appropriate programs have been implemented to recover from the effects of this emergency, but in no case longer than February 1, 2016, unless extended as provided by Act No. 390. Given under my hand and the Great Seal of the State of Michigan this 5th day of January in the Year of Our Lord, Two Thousand and Sixteen. ZA Engl RICHARD D. SNYDER GOVERNOR BY THE GOVERNOR: os OF STATE FILED WITH SECRETARY OF STATE on_! [S fice at 4:00 pm xxxEND_PAGE:treasury01_b40_7317_7621_046 RICK SNYDER DEPARTMENT OF TREASURY NICK A. KHOURI GOVERNOR LANSING STATE TREASURER STATE OF MICHIGAN Flint Water Quality Chronology — January 2016 Pre-Emergency Manager Status: Prior to November 28, 2011 1. 2, March 16, 2011 — Public Act 4 of 2011 becomes effective repealing Public Act 72 of 1990. August 26, 2011 — Notification of preliminary review sent to Flint Mayor. August 29, 2011 — Treasury staff begins preliminary review of Flint’s finances. September 12, 2011 — Treasurer sends preliminary review report sent to Governor indicating probable financial stress and recommends appointment of a review team. September 30, 2011 — Governor appoints a financial review team asking review team to produce a report within 30 days versus 60 days allowed by statute. October 5, 2011 — Review team begins its review of the City’s finances. November 7, 2011 — The review team issues its report to the Governor finding a financial emergency in the City of Flint. November 8, 2011 — The Governor declares a financial emergency in the City of Flint. November 28, 2011 — The Governor appoints Michael Brown as the Emergency Financial Manager. Emergency Manager Michael Brown: November 28, 2011 — August 8, 2012 1. June 26, 2012 — Letter from Flint EM Mike Brown to DWSD for permission to begin blending Flint River water with treated water from DWSD. The letter indicates that the DEQ is supporting this option and its implementation would save the City between $2M and $3M annually. . August 8, 2012 — Public Act 4 of 2011 is suspended while awaiting referendum vote on November 6, 2012. Public Act 72 of 1990 reinstated, which does not allow a former employee of the city to be an emergency financial manager. Michael Brown is required to step down. P.O BOX 30728 » LANSING, MICHIGAN 48908-8228 www michigan govétreasury « 517-373-3227 xxxEND_PAGE:treasury01_b40_7317_7621_047 Page 2 Emergency Financial Manager/Emergency Manager Ed Kurtz: August 8, 2012 — July 4, 2013 3. August 8, 2012 — ELB Order #2012-4, Appointment of Emergency Financial Manager, Edward J. Kurtz. 4. September 20, 2012 — Letter from Flint EM Ed Kurtz to DWSD requesting written permission to implement the blending option. Approval is requested by October 1, 2012. 5. October 31, 2012 — Analysis by the Flint Finance Director suggests that the annual cost to purchase water from DWSD will steadily increase to $23M per year by fiscal year 2020. 6. November 2012 — Treasury retains Tucker, Young, Jackson and Tull (TYJT) to evaluate the KWA proposal to the City of Flint. 7. November 6, 2012 — Letter from Flint Emergency Manager Ed Kurtz to State Treasurer Dillon that a proposal from DWSD is expected but that the initial assessment is that switching to KWA is in the best interest of the City of Flint. 8. January 11, 2013 — ELB Order #2013-2, Amending Contract of Emergency Financial Manager, Edward J. Kurtz. 9. February 6, 2013 — TYJT issues a final report to Treasury on the comparison between Karegnondi Water Authority (KWA) and DWSD. Analysis suggests that the KWA option is the cheaper option for the City of Flint. 10. March 2013 — DWSD contacts the City of Flint to begin direct negotiations on a contract extension. Multiple options are provided to the Flint Emergency Manager (EM) Ed Kurtz. 11. March 25, 2013 ~ The Flint City Council endorses joining KWA. 12. March 28, 2013 — Public Act 436 of 2012 becomes effective. 13. April 11, 2013 — State Treasurer Andy Dillon authorizes Flint EM Ed Kurtz, pursuant to Section 12(3) of P.A. 436 of 2012, to enter into a contract with KWA if a final offer from DWSD is either not received for rejected in good faith based upon specific objections. 14. April 15, 2013 - DWSD provides a best and final offer to the City of Flint. Analyses by Flint EM Ed Kurtz, the Department of Environmental Quality and Treasury’s Office of Fiscal Responsibility independently conclude that the KWA option is cheaper for the City of Flint. 15. April 16, 2013 —-Flint EM Ed Kurtz informs the State Treasurer that the City will join KWA. This decision was officially announced May 1, 2013. 16. April 17, 2013 - DWSD transmits a letter to Flint EM Ed Kurtz terminating service to the City of Flint, effective April 17, 2014. 17. June 26, 2013 — Groundbreaking for the Karegnondi Water Authority begins. Flint also requests full time use of the Flint Water Treatment Plant with Flint River water as a source. xxxEND_PAGE:treasury01_b40_7317_7621_048 Page 3 18. June 28, 2013 — Financing Contract between the City of Flint and KWA is approved. Effective August 1, 2013. This document was signed by EM Mike Brown. Emergency Manager Michael Brown: July 4, 2013 — October 8, 2013 19. July 4, 2013 — Michael Brown appointed Emergency Manager under PA 436 of 2012. 20. July 08, 2013 — The City retains Lockwood, Andrews & Newman engineering firm to get the City’s water plant up and running while the KWA pipeline is built. Emergency Manager Darnell Earley: October 8, 2013 — January 13, 2015 21. October 8, 2013 — Darnell Earley appointed as Emergency Manager under PA 436 of 2012. 22. February 19, 2014 — The KWA Board of Directors adopts Resolution 2014-01 and 2014- 02, authorizing KWA to bond for water line construction on-behalf of the City of Flint. 23. April 17, 2014 — Water service from DWSD officially ends. The City of Flint also conducts two separate public forums regarding the use of Flint River water, upgrades to the City’s water system and the overall cost of the switch to KWA. 24, April 25, 2014 — City conducts public event marking the transition to the use of Flint River water. DEQ information shows that transition complete by May 2015. 25. January 2, 2015 — The City issues a press release stating the City water system exceeds the TTHM maximum contaminant level. 26. January 9, 2015 — ELB Order #2015-1, Determination that Modification of Collective Bargaining Agreement Proposed by Emergency Manager Best Serves Interest of the Public (International Association of Firefighters Local 352) Emergency Manager Gerald Ambrose: January 13, 2015 — April 29, 2015 27. January 13, 2015 — Gerald Ambrose appointed Emergency Manager under PA 436 of 2012. 28. March 3, 2015 — Flint EM Jerry Ambrose provides a memorandum to Deputy State Treasurer Wayne Workman stating that a reconnection to DWSD will cost the City $10.1M/year and that water purchases could be as high as $1M/month. 29. March 12, 2015 — Veolia issues the final operational evaluation of the City’s water system. 30. April 29, 2015 — ELB Order #2015-2, Order of Approval of Emergency Loan, ($7,000,000) xxxEND_PAGE:treasury01_b40_7317_7621_049 Page 4 31. April 29, 2015 — Financial emergency resolved. Gerald Ambrose vacates Emergency Manager position and Governor appoints a Receivership Transition Advisory Board. Post Emergency Manager Status (Flint RTAB): April 29, 2015 - Present 32. September 3, 2015 — MDEQ testing of the City’s water shows TTHM levels are below the required action level. 33. September 25, 2015 ~ Genesee County Health Department and the City of Flint issues a lead advisory for residents to be aware of lead levels in drinking water after hearing concems from the medical community. 34. October 16, 2015 — The City of Flint reconnects to Detroit Water. 35. November 4, 2015 — The EPA issues its final report on high lead levels at three residences in the City. xxxEND_PAGE:treasury01_b40_7317_7621_050 Dempkowski, Angela (Ti reasury)