Correspondence between

Emails where every selected person appears as a sender, recipient, or copied participant.

RE: Help finding EM orders on water investigator

Terry, I can find no information related to this topic. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury { Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail cliner|@michigan.gov CONFIDENTIALITY NOTICE: This e-mail, and any attachments, 1s for the sole use of the tended recipient(s) and may contain information that 1s confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 2s prohibited, If you are not the intended recipient, please contact the sender by reply e-maul, and delete/destroy all capies of the original message and attachments Thank you.

Water Related Civil Litigation.PDF

Thanks, Natasha L. Henderson, City Administrator 1101 S. Saginaw St. Flint, MI Email: Phone: (810) 237-2057 www.cityofflint.com xxxEND_PAGE:treasury01_b38_6783_6976_075 CITY OF FLINT Dr. Karen W. Weaver January 27, 2016 Mayor Treasurer Nick A. Khouri Michigan Department of Treasury Lansing, Michigan 48922 Re: Water Related Civil Litigation Dear Treasurer Khouri: In our letter of December 10, 2015, we requested the State of Michigan’s financial assistance with the cost of defending the Shears, et al v City of Flint, et al \awsuit. As stated in that letter, if plaintiffs were to be successful in that litigation, the financial impact on the City of Flint (City) would be catastrophic. As you are aware, the City hired the law firm of Miller Canfield to aid in its defense. Since the firm became involved defending this suit, the City has won favorable rulings before Circuit Court Judge Archie Hayman. These rulings included an amendment scaling back the scope of the August 17, 2015, preliminary injunction. Prior to this ruling the City was forecasting financial insolvency as early as this summer. Now, the City is permitted to charge water and sewer rates consistent with the Revenue Bond Act and the biennial budget adopted by former Emergency Manager Gerald Ambrose. Additionally, Judge Hayman has acknowledged that the City is not obligated to repay 15.7 million dollars from its general fund to its water and sewer fund. Put simply, while the costs to retain Miller Canfield have not been insubstantial, it has been money well spent. These rulings are clear victories for the City. They are a key step in ensuring Flint’s overall financial health and stability — both now and in the future. While these triumphs are important, the City has also moved to have the case dismissed. Although Judge Hayman denied the motion, the City believes it has strong grounds for appellate review. That appeal is currently pending before the Michigan Court of Appeals, and the City expectantly awaits a favorable ruling. Despite the successes in Shears, the City must still overcome significant economic challenges. Our City is confronting the most dire water related emergency faced by a municipality in recent memory. This is not hyperbole, Both Governor Snyder and President Obama have declared states of emergency in the City because of the water. What is more, our City’s infrastructure, reputation, and people have been irreparably damaged. As a result of this situation, the City is facing a significant amount of civil litigation. Several lawsuits have already been filed against the City. These include two class action suits. The first, Mays v Snyder, et al was brought in the Eastern District of Michigan; the second, Collins v Snyder, was brought against the City in Genesee County Circuit Court. The City expects to incur significant legal City of Flint 1101 8. Saginaw St. Rim J01 - Flint, Michigan 48502 | wau.cityvofflintcom > (S10) 766-7346 © Far: (810) 766-7218 xxxEND_PAGE:treasury01_b38_6783_6976_076 fees and costs in defending these two suits. Moreover, we believe these suits are only the first wave of suits to be filed. It is very likely that additional plaintiffs will file suits against the City in the future. As is the case with the Shears litigation, if the plaintiffs in any water related lawsuits are successful, the financial impact on the City would be catastrophic. Certainly, the financial progress and accomplishments achieved by emergency managers over the lust four years are at risk. Avoiding this catastrophic result must be a priority. And, given the potential liability posed by these cases all funds expended on competent, qualified legal counsel will be money well spent. We again acknowledge that under Public Act 436, the State does not assume liability for the actions of an emergency manager. However, without State assistance, the City simply cannot cope with the voluminous number of lawsuits it will soon be facing. Our City needs the resources and expertise of proven legal counsel, such as Miller Canfield, Unfortunately, the City cannot afford these costs. Therefore, we are asking the State to provide the necessary funding for outside legal counsel. The City and its residents have sacrificed much to attain fiscal stability and end the financial emergency. Our budget, which is already thin, has been stretched to the breaking point by the water crisis. Again, we need the State’s help. We would ask that you provide us with the financial assistance necessary to deal with all water related litigation both now and in the future. Respectfully submitted, Dr. Karen W. Weaver " Nitasha L. Hendergo: Mayor City Administrator SADBR\Municipal Folders\Water Litigation Treasury Cormespondence\Ltr to N Khouri re Water Sutts | 27 16 docx xxxEND_PAGE:treasury01_b38_6783_6976_077 Pleyte, Beth (Ti reasury)

RE: Treasury approvals regarding Flint WTP

To
Wayne Workman , Larry Steckelberg , Schafer, Suzanne K , Randall Byrne
All: Here is what | have that specifically pertains to the City’s Water System: April 10, 2015 — Lockwood, Andrews and Newnam for GAC Filter procurement and construction - $1,601,740. December 10, 2014 — Metron-Farnier for water meter purchases - $110,811. August 28, 2014 — Idexx Distribution for water testing supplies - $70,000. April 24, 2014 — Ozonia North America for Water Plant ozone generators - $55,815. March 18, 2014 — Zito Construction for initial watermain cut-in at the Water Plant - $676,300. March 11, 2014 - Metron-Farnier for water meter purchases - $199,645. February 25, 2014 — McNaughton-MckKay for electrical distribution upgrades at the Water Plant - $16,850. February 25, 2014 — Xylem Water Solution for a pump and large motor purchase - $277,000. ne ee oe February 25, 2014 — Newkirk for replacement of obsolete electrical equipment at the Water Plant - $852,000. ray Oo . February 20, 2014 — Purchase of High Voltage Distribution equipment for the Water Plant - $225,000. ray ary . December 16, 2013 — McNaughton-McKay for Water Plant Transformer Upgrade - $238,306. ry N . November 21, 2013 — Wachs Valve and Hydrant Services for Water Valve Exercising/Maintenance Program - $60,000. 13. November 21, 2013 — HD Supply Waterwork for Water Distribution Parts - $200,000. 14, November 15, 2013 - McNaughton-McKay for Cedar St. Pumping Station Switchgear Upgrades - $505,000. 15. November 15, 2013 - McNaughton-McKay for Water Plant Electrical Distribution Upgrades - $1,512,000. 16. November 15, 2013 - Lockwood, Andrews and Newnam for Water Plant Operations implementation - $1,133,800. 17. November 14, 2013 - McNaughton-McKay for Variable Frequency Drive - $349,710. 1 xxxEND_PAGE:treasury01_b41_7622_7971_133 18. September 24, 2013 - Ace-Saginaw for Asphalt Paving Materials - $194,062. 19. August 27, 2013 — Ace-Saginaw for Paving at the Water Service Center - $124,236. 20. August 27, 2013 — Rowe Engineering for Engineering Services - $149,600. Rob is also compiling his list. This will be forwarded as soon as it is finished. If there are any questions, let me know. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail chner!| @michigan.gov CONFIDENTIALITY NOTICE: This e-mail, and any attachments, 1s for the sole use of the intended recipient(s) and may contain wnformation that 1s confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 1s prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments Thank you.

RE: Message from "RNP002673A81665"

Importance: High Randy, | have reviewed our information and | can only confirm a few pieces of information that are highlighted: e December 20, 2012 - While | have no specific information on this listing, Treasury and the City met with TYJT on December 21 to review options on either going with KWA or staying with DWSD. | believe this was a presentation of TYJT’s preliminary report. | also have a reference that on December 21, the City received a new proposal from DWSD for water purchases. These points are outlined in a January 23, 2013 memo to the State Treasurer. ¢ March 12, 2015 —1 can confirm this is the date that Veolia released its report. We have a copy of this document. ® January 9, 2015 —1 have no specific information on this issue. However, it is worth noting that it was at this time that the TTHM issue also began. Much of our information from this period concerns this issue. The TTHM issue was not resolved until early September 2015. The earliest reference | see on a lead issue is late September. This is all of the information that | can find to cross-reference. Il should note that many of these events our office was not directly involved. If you have further questions, let me know. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone Cli ga Traverse City Office (231) 922-5228 E-mail cliner] @michigan.gov CONFIDENTIALITY NOTICE: This e-maul, and any attachments, 1s for the sole use of the intended recipient(s) and may contain information that 1s confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 1s prohibited. If you are not the intended recipient, please contact the sender by reply e-maul, and delete/destroy all copies of the original message and attachments Thank you.

draft Flint call topics

From
Patrick Dostine
To
Randall Byrne , Richard Cline , Deanna Hudson
Alex or Deanna, would one of you like to scribe this call. I will do the Lincoln Park one. Flint — Dec. 9 —- Mayor Weaver, N. Henderson, Nelson, F. Headen, W. Lamphiery, R. Byrne, E. Cline, P. Dostine, D. Hudson, A. Heimann dudit ». ake Situahed © Priorities/updates - 1) Ramer Deve > Akedy sai cated by viet : e Water L o Water Sewer fund - £) PhésPhate- Tetarren ~ Etec Werle Spl Contaiaeue ¢ Miscellaneous ~ 1) duly EPA UPpdat 5 MAY Mearhly Tew Watrr Rill teall's “aod Water Rates Heaviny —__ { H Qe incece Se rea) Ger Bor ete Patrick Dostine Adycarned te Bee 14 . Ly WAR ure Pending Far aid on Case Cenlcctiens 2) @SF State of Michigan 2) Ecen Gee Department of Treasury Local Government Financial Services Division fain New kwh) appesnte teint ug Cadillac Place —__~ Arh traties Scherw water —_——— Us. rterdest UPdakt rhet fand§ 3044 W Grand Blvd Detroit, MI 48202 (office) 313.456.1772 [email protected] | CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution ts prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments. $F PR Discctert Pp qi Wwerkeng well Jasen Letene Gee Murder Bettew Serve ene Mer, Prefs Svenal Maye® ca Beard Finance Five #'¢ VY S&S Spohiay eeczde Sogarficqant Drop Aeain§ Impacts Grants Wank Lb Apely Fre Grant egal anh bean fer Memal Tou - Hid hest Day 12-3) Teay Chubb ~ latices Chacly, MeClindaa- tater HR 1. Fetiqiventss wv May nee d how Aeiabeli ty Study Fer Dwar pears a teste Shure Fe PRY xxxEND_PAGE:treasury01_b26_3730_4111_033 Flint —Weekly Call 12/09/15 Present: Mayor Weaver N. Henderson Council President Nelson W. Lamphiery R. Byrne E. Cline P. Dostine D, Hudson A. Heimann Not Present: F. Headen Water Issue: 1. EPA- Corrosion control updates are happening daily 2. “Spill containment” is final step before corrosion control 3. Will start corrosion control “today or tomorrow”, but to date, they have not yet introduced the anti-corrosion Ortho phosphates. Public Safety: 1. Homicides are up in Flint. N. Henderson is confident that the new initiatives and partnerships will help reduce the number of violent crimes in the City, but these initiatives have not started yet. 2. Fires are down in the City significantly. e Concerns that this drop will affect their ability to receive federal grants e Looking for funding to receive an “Areal Truck” which will help them reach the tallest building in the City. Right now, any fire in that area requires assistance from partnerships with other communities. This type of ladder truck will cost and estimated $1M at least. 3. Dispatch arrangement is “working well”: e N Henderson told a story about meeting with a patrolmen who told her that he liked that they check in every hour. ¢ Mayor sits on the council as the representative from the City Legal issues: 1. Lost current head of counsel (did not catch the name) ¢ Will be filled with an interim, Tony Chubb. Chubb is currently the interim head of Human Resources e Vacancy as interim in HR will be filled by Charlie Mclendon, who is the City’s Labor Dispute counsel xxxEND_PAGE:treasury01_b26_3730_4111_034 2. Water litigation e Current lawsuit to stop the city from collecting water bills had been adjourned on December 8th, will be back in court on the 18" e Unclear whether or not this issue will be decided before Christmas © Have submitted a letter of request to the Treasury to help them pay for legal fees in this case Financial issues: 1. Still have a spending freeze in the City e Delinquent water bills are still not getting paid 2. State revenues, loan sources e City and Representative Kildee are looking for loan forgiveness from the State « Have had meetings with the DEQ to discuss Revolving Loan Fund — “Green Projects” © Fund requires that the city have a “reliability study” done, and though the City already has a standard reliability study conducted, they are required to do a special one. This may result in them asking for some money from the Treasury. « Audit has been completed, should have a small positive general fund fund balance. Public Relations 1. Jason Lorenz “no longer works with the City” 2. Townhall meeting ¢ Both the Mayor and N. Henderson attended, as well as over 200 participants e Topics/presentation included: Water, Public Safety, Economic Development (Though there wasn’t much time to talk about ED) xxxEND_PAGE:treasury01_b26_3730_4111_035 Nn 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CITY OF FLINT RECEIVERSHIP TRANSITION ADVISORY BOARD MEETING DECEMBER 9, 2015 2:00 p.m. Meeting before the RTAB Board at 41101 S. Saginaw, Flint, Michigan, on Wednesday, December 9, 2015. BOARD MEMBERS PRESENT: Frederick Headen - The Chairperson Robert McMahan David McGhee Beverly Walker-Griffea FROM THE CITY: Mayor Karen Weaver Kerry Nelson, City Council President Vicki VanBuren, City Council Member Eric Mays, City Council Member Natasha Henderson, Administrator Jody Lundquist, CFO OTHERS PRESENT: R. Eric Cline R. L. Mitchell Brian Larkin REPORTED BY: Mona Storm, CSR# 4460 xxxEND_PAGE:treasury01_b26_3730_4111_036 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MOTION INDEX ACTION I. LIT, QOmDr Iv. Call to order A. Roll Call B. Approval of Agenda C. Approval of 10-14-15 minutes UNFINISHED BUSINESS NEW BUSINESS: Mayor and Council President 2016 Meeting Schedule (attachment #2) Approval of Resolutions & Ordinances for City Council Meetings Resolutions from the Regular City Council meeting of October 12, 2015 (attachment #3) (Resolutions 828.1, 863, 864, 865, 872, 875, 876) a. Resolution #866 Resolutions from the Regular City Council meeting of October 26, 2015 (attachment #4) (Resolutions 886, 887, 888, 889, 890, 891, 892, 893) Resolutions from Regular City Council meeting of November 9, 2015 (attachment #5) (Resolutions 909, 910, 912, 913) Resolutions from the Special City Council meeting of November 18, 2015 (Attachment #6 (Resolutions 926, 927, 928, 929, 930, 931, 932, 933, 934) Resolutions from the Regular City Council meeting of November 23, 2015 (attachment #7) (Resolutions 929, 932, 936, 937) City Administrator Items 1. Budget to Actual - September 2015 (attachment #8) 2. Budget to Actual - October 2015 (attachment #9) Public Comment Adjournment PAGE w or fb b haw o 37 22 23 43 24 43 58 xxxEND_PAGE:treasury01_b26_3730_4111_037 1 Flint, Michigan 2 Wednesday, December 9, 2015 3 2:02 p.m. 4 THE CHAIRPERSON: The meeting will please be 5 in order. The time is 2:03. 6 First item of business roll call, please. 7 Let the record reflect that all four members of the 8 RTAB are present. 9 Item B, the Approval of the Agenda. I wish 10 to note two amendments to the Agenda: 1a One is under New Business, Item C 1, 12 Resolutions of the City Council meeting of 13 October 12th, 2015, Resolutions 872 and 875 were 14 already approved by the RTAB at its October meeting, so 15 please remove those two resolutions. 16 And then, secondly, with regards to -- still 17 under New Business, Resolutions from the Regular City 18 Council meeting of November 9th, there are four 19 resolutions listed there. But, upon further review, 20 there were no actions taken by the City Council at that 21 meeting that requires any approval by the RTAB so we'll 22 strike Item Number 3 in its entirety. 23 Are there other additions or changes to the 24 agenda, for this afternoon's meeting? 25 If not, 18 there a motion that the motion -- xxxEND_PAGE:treasury01_b26_3730_4111_038 10 11 12 13 14 15 16 17 18 19 20 24 22 23 24 25 that the agenda, as amended, be approved? MR. McMAHAN: So move. MR. McGHEE: Support. THE CHAIRPERSON: Without objection, the amended agenda is approved. Item C, the approval of the October 14, 2015 RTAB meeting minutes. There's Attachment 1. Are there any corrections or additions to those minutes? If not, is there a motion that the minutes of October 14 be approved at written? MR. McGHEE: So move. THE CHAIRPERSON: Is there support? MR. MCMAHAN: Support. THE CHAIRPERSON: Without objection, minutes of October 14 are approved. Item 2, Unfinished Business, there is none. Item 3, New Business, we have a standing agenda item for the Mayor and City Council President. we wish to welcome the new mayor who’s here with us this afternoon, Madam Mayor, we're glad to have you here. If you have any comments you'd like to make to this Board, please feel free. We're not going to hold you to the regular two minutes under Public Comment. MAYOR WEAVER: Well, thank you. And I am xxxEND_PAGE:treasury01_b26_3730_4111_039 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 glad to be here. And I'm glad to have had the opportunity to now have met everybody on the RTAB. Some of you I knew and now I've met everybody so I just wanted to say I'm glad that that's happened now. What I did was to go through the last set of minutes to see what had been reported out on so I did want to give an update about the last report. And, if you look at that, it was, of course, talking about water. So I do want to let you know that water is still our top priority here in the City of Flint. And, while we have made the move to go back to Detroit water, we still have issues with lead exposure. And so one of the things we have to be mindful of is that the community is still taking the necessary precautions, we don't want them to get comfortable and relaxed and think, okay, we've made this switch and everything is okay. So we want to keep that up in people's mind. But I have met with the State and what they have said is that they’ve agreed to continue to support the filter program. And, in fact, when we had our Town Hall meeting last night, we gave some out. And what we're doing differently is we're giving the replacements out along with the filters. But they have agreed to continue to support the filter program, so xxxEND_PAGE:treasury01_b26_3730_4111_040 10 1a 12 13 14 15 16 17 18 19 20 21 22 23 24 25 we're pleased about that. We've got to continue to monitor the Detroit water and utilize the best technical expertise that we have available. One of my concerns is that we know that, when the phosphate gets added, what we've been told is that there's going to be a visual impact and, while that's okay, I think it's going to be alarming to the community because they're going to say that, “You can't tell me cloudy water is good.” And so one of the things we know we have to do 1s we're going to do an increase with our PSAs because we do want to let them know ahead of time what to expect and -- but -- but that's the concern as -- is the trust factor. So we're trying to work on that trust factor and let people know what's going on. And we've been doing -- I think -- I believe we've been doing a really good job with notifying the public and letting them know what the issues are and what we've been doing and the necessary steps that we've been taking. But I know that's going to raise red flags for them, even though we know that's what's to be expected. And what I was told was that that would last anywhere from two to four months before we get to that maintenance dose. So we just need to let the public be xxxEND_PAGE:treasury01_b26_3730_4111_041 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 aware and we can continue. And when I spoke with Lynn Meyers and Julie Wells, they're going to continue that lead education program. But, because of everything that's going on, we do know that we still need State and Federal funding to help deal with this problem. So we're going to be working diligently towards that accomplishment. Flint needs help and we know that we don't have the funds necessary to be able to make all of the changes and to provide the supports that are needed. So that's just my update from the last report that was given. So I did want to have the opportunity to share that with you and let you know what our concerns are and what we're doing. Thank you. THE CHAIRPERSON: Okay. Thank you. MR. MCGHEE: Thank you. THE CHAIRPERSON: Thank you, Madam Mayor. Council President Nelson? MR. NELSON: Good afternoon. THE CHAIRPERSON: Good afternoon. MR. NELSON: I think most of you know me. But, since we had met last, I've took over the responsibility of -- I've worked with our new xxxEND_PAGE:treasury01_b26_3730_4111_042 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Madam Mayor, the City Administrator, we've come here and we've talked and meet. And briefly, you know, water is our top priority; the Mayor stressed that from day one in her Town Hall meeting, she stressed it, again, to bring that trust back in this community and I think that's what we want across the board. I will be at these meetings. I will not take this mic unless there is a difference in opinion. But, other than that, I will be here. I'm at your disposal, if you need us. Council Member VanBuren is here and Council Member Mays is always here. So you do have Council here present at all times. Thank you. THE CHAIRPERSON: Thank you. Item B is the proposed 2016 Meeting Schedule for the RTAB, which we have an Attachment 2. Any questions or comments about that? MR. MCMAHAN: Not at this time. THE CHAIRPERSON: Is there a -- a motion, then, that the proposed meeting schedule of 2016 for the RTAB be approved? MS. WALKER-GRIFFEA: So moved. THE CHAIRPERSON: Is there support? MR. MCMAHAN: Support. xxxEND_PAGE:treasury01_b26_3730_4111_043 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE CHAIRPERSON: Those in favor, please say "aye", BOARD MEMBERS: Aye. THE CHAIRPERSON: Opposed? Motion is adopted. Item C, under New Business, we have Resolutions from several City Council meetings to approve. We'll begin with those resolutions from the Regular City Council meeting of October 12, 2015, Resolutions 828.1, 863, 864, 865 and 876. Were there any questions or comments with respect to any of thase Resolutions? MR, MCMAHAN: No. THE CHAIRPERSON: If not, is there a motion that those Resolutions be approved? MR. McGHEE: So move. THE CHAIRPERSON: Is there support? MS. WALKER-GRIFFEA: Support. THE CHAIRPERSON: Those in favor, will you please say "aye". BOARD MEMBERS: Aye. THE CHAIRPERSON: Opposed? Motion is adopted.

FW: KWA & Water Quality Chronology Timeline

Importance: High Randy, Per your request. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail cliner1 @michigan.gov CONFIDENTIALITY NOTICE: This e-mail, and any attachments, 1s for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 1s prohibited. if you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the onginal message and attachments Thank you.

RE: Join Me Wednesday for an Update on Flint Water

Rob, Go ahead and plan on attending. | did mention this to Wayne and he agrees we should at least be aware of this. Please report back on what transpires. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Drvision | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Fleor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail cliner]@michigan.gov CONFIDENTIALITY NOTICE: This e-maul, and any attachments, ts for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 4s prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments Thank you.

Flint Financial Reports

of Flint Cash and Investment Summary 8-31-2015.pdf Importance: High Randy, Per your request. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail cliner] @michigan.gov CONFIDENTIALITY NOTICE: Titus e-maul, and any attachments, 1s for the sole use of the intended recipient(s) and may contam information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 1s prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the original message and attachments Thank you.

Flint Weekly Call

To
Randall Byrne , Patrick Dostine , Deanna Hudson
Tracking: Recipient Delivery Byme, Randail (Treasury) Delivered 10/20/2015 503 PM Dostine, Patnick (TREASURY) Delivered 10/20/2015 5 03 PM. Hudson, Deanna (TREASURY) Delvered 10/20/2015 503 PM Heimann, Alexandr (TREASURY) Delivered 10/20/2015 5 03 PM All: Here are some talking points for the Weekly Call with Flint. e Weekly Priorities - ® Status of Water Transition to DWSD - £) De ® Utilities Update © Charter Commission Status - weeny Seetingg , Meth Funeling~ 7 © Miscellaneous ~ fre: Sens Pr etete ac es em wey Break Mesh camimns « Wate Raat? ~ L) Me Changes A Mev Likely » FOcuT - 2 St) barat 2) Aeteestent Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail [email protected] CONFIDENTIALITY NOTICE: Thus e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain mformation that 1s confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution 2s prohibited. If you are not the intended recipient, please contact the sender by reply e-maul, and delete/destroy all copies of the original message and attachments Thank you. 2) Devuwg te tere! vf 4 WATER Chen Phew PSF TER SH EE A Vie Red Met = PA comPega, Bey Papran Org Mecreng Need othe GYr CED rcuctee Moth 7 Varker uta gs Coty up Feontegl Deawee Mayoral Atvitew Joy fare ef Foaee 4@ 4 oa Nor €xPeetee Gl update Dew Colltetie iy? Me cue BT clays Te ATHY Shut-elts Car eguac on A ub uneeet wh bhig FM exehinag xxxEND_PAGE:treasury01_b36_6099_6552_087 Faint Wiardy | Dans _Aptesren ate [ofa] ism Randy | Grice | Paste “Sager Violtnce prduchen n crwore Lanny pa al ~fedurstig mundi pro ram | ee Cacanthy (01dhg WHOIS Ch aephicents) Ist quartic copdlere Mutable will Operr (3° ike —_ _ Ubigadon “Agthun wy ne pnee er unbee. 7 wire dofundiors MEN Dlanncact Maen ac tevin “see wing. + Ait pasate oe Set raeate ries MuLtpa ttars & quark ee Len Sirr ma maach ee are: Sat ye an - Bo wilhs ff et furs he He aan iv abe KALI Lw Lng lah ity GL Fe mull wi ; LAR Stay if Gok. fi {ews 1SSerS ay eaken. Seo Bie dics bls don oa tie 4g Mili den A Up Wont bb Bat we $ . Sauk off Go dye fis fon ctu date. [\siumeur CI mth Hey dit Stuuk off soe th ae Ss T xxxEND_PAGE:treasury01_b36_6099_6552_088 Byrne, Randall (T: reasury)

WkI Conf Notes Oct. 19, 2015

Patrick Dostine State of Michigan Department of Treasury Local Government Financial Services Division, Office of Fiscal Responsibility Cadillac Place 3044 W Grand Blvd Detroit, MI 48202 (office) 313.456.1772 [email protected] xxxEND_PAGE:treasury01_b36_6099_6552_055 Weekly Conference Call Notes — Oct. 19, 2015 Allen Park —Oct. 16 —Mayor Matakas, M. Kibby, R. Byrne, E. Cline, P Dostine Priorities e White Hall auditors will be starting approximately Nov. 6. Audit should wrap up by end of December. Bond tender update e An institution which holds approximately 20% of the bonds that were tendered recently wants to sell. Tentatively a special council meeting and RTAB meeting is scheduled for Oct. 27 & 28 respectively to address the proposed acceptance of the offer. Park Street construction e Finished paving today. Walk through tomorrow with city engineers. If all goes well, road will be open next week. City said there are a few issues that have to be addressed by contractor. FDCVT Grant e The City submitted its grant Oct. 14. Retiree Health Changeover « B Cady said there have been some minor issues. Otherwise, 99% of the people are satisfied. Overall, actives saw an increase in their healthcare cost of 3.2%. Police realized an increase of 5.5%, Retiree healthcare lawsuit « Retirees filed an appeal. Allen Park is working with its attorneys. A hearing date has been set for Nov. 5. Miscellaneous e Allen Park was informed that the Governor may be appointing a new member to the RTAB. Benton Harbor —Oct. 8—D. Watson, R. Byrne, R. Widigan © Weekly Priorities: © Negotiations ongoing with ASFME and FOP — should be wrapped up shortly. = FOP is asking for everything EM Saunders took away. xxxEND_PAGE:treasury01_b36_6099_6552_056 © Election: Two for mayor, and there is a write-in candidate challenging every commission seat that is up for re-election. © Audit: Auditors will be on site next week, should be out by mid-November. o Budget amendments: Two amendments will go to the commission on the 19", reallocation of dollars, no change in bottom line. e Lange, O’Brien/Unruh Lawsuits: Plunkett & Cooney will hold a closed session on October 19 to update the Commission. o Lange still is asking for $595K o Timeframe: Noting will be done before the election is over — Treasury will set up a date for Darwin and the Mayor to come to Lansing to discuss the lawsuits. © Update on Vacant Positions: Personal committee approved the MML search proposal and moved it along to the full Commission. © Water Department Superintendent: Fleis & Vandenbrink Engineering, Inc. is asking for $2,500/week to provide the City with 4 individuals to run the plant. o Assessor: The City has identified an individual to hire, meetings are scheduled to discuss details. ¢ FDCVT Grant Applications: The City will be submitting 4 grant applications shortly. e City Manager Evaluation Discussion: One commissioner was hoping to “bridge the peace” between Darwin and the Commission. o The Commissioner wanted an update from the evaluation that took place six months ago. Priorities o Budget and 5-year budget. New controller has finished revising the budget and the 5-year budget. O’Neal said Ecorse council has approved the revised ‘15/’16 budget. Going to the Nov. RTAB. The revised 5-year budget has a projected fund balance of $1.5MM in 2021. Capital projects were revised in the ‘15/°16 budget as well as in the 5-year. Fire consolidation o O'Neal said today that Ecorse is counting on the $2MM FDCVT request to make the transition to an all part time fire department work. He asserts that the 5-year is balanced with this deal. OPEB benefit audit xxxEND_PAGE:treasury01_b36_6099_6552_057 o O’Neal said that the OPEB benefit audit, which Ecorse did in-house, will be done in a few days. Miscellaneous o Water rates. O’Neal said the city will be raising water rates. Plans on hiring an engineering firm to audit all the customers. o O'Neal promised to get Drew Van de Grift contract disclosure forms for: auditor, insurance, purchase of car, and Miller / Canfield legal services. o O’Neal said Ecorse is working on the list from the Wayne Workman memo dated Aug 10. Items include: developing a business plan for DPW; OPEB audit; Savings in fire department; budget for fill ARC payments. o O'Neal has a meeting with US Steel to discuss the company selling a piece of property to the city to use for parking. o Treasury will meet with O’Neal in the coming weeks. Flint — Oct. 14 —N. Henderson, Mayor Walling, J. Freeman, F Headen, Wendy, R. Byrne, E. Cline, P. Dostine « Priorities o Henderson bringing two amendments to Oct 14 RTAB: $2M budget adjustment (money from the Water Fund fund balance) and Agreements needing execution between Flint and DWSD, and Flint and Genesee County. o The city anticipates connecting to DWSD in the next few days. e Lawsuit © Miller Canfield still representing Flint in both the Kincaid and Shears lawsuits. Henderson repeated again that Flint will need assistance in maintaining Miller Canfield as counsel. e Public Safety o Fires are down in Flint. Because of that, Flint no longer qualifies for some grant dollars. © Tierl crimes (homicide, rape, armed robbery) are down in Flint. o. Chief of Police (and Flint) is participating in Violence Reduction Network (VRN), a Dept. of Justice initiative that provides technical assistance and other in- kind crime prevention assistance to cities with higher than average violent crime. Hamtramck — Oct. 8 — K. Powell, R. Byrne, R. Cline, P. Dostine, D. Van de Grift Priorities o Hamtramck has commenced work on the park in front of City Hall, Pope Park, and Veteran’s Park. xxxEND_PAGE:treasury01_b36_6099_6552_058 o Katrina and the City Council successfully attended the MML training in Traverse City, in compliance with EM Square’s final order and the directive of the RTAB. o At last month’s RTAB meeting, the Board denied the city’s current contract with their auditor of choice; the City must find another auditor. o Following the death of Councilman Walters, the Council disagrees about how the vacancy will be filled. Police Study o Katrina has only one potential study proposal; Treasury has requested additional proposals for comparison. o Ann Moise likely will be appointed to full-time chief after the election. Pension Study o Phase II will be skipped; Phase III is expected to begin soon. City Treasurer co Has been busy on some projects. Highland Park— Oct. 14—C. Square, R. Byrne © The collection firm has approximately $7M in past due accounts to collect. However, many of these accounts are no longer active. o Meadowbrook will be providing an updated report on OPEB costs which show a substantial reduction of the annual costs. The new estimated annual costs will be between $200K and $300K. o New water bills with the new water and sewer rates have been sent out to the customers. o Wade-Trim has opened its customer service center on Woodward Avenue. o BSA software installation has been completed. o The City will be submitting several FDCVT grant applications including master water meters, LED streetlights, and building improvements. o Wade-Trim has received several shipments of residential water meters that will be installed soon. Inkster — Sept 16 — M. Stuhldreher, R. Byrne, P. Dostine Priorities xxxEND_PAGE:treasury01_b36_6099_6552_059 a Redevelopment Ready Community program. Inkster is interested in following through with MEDC to achieve RRC certification. Treasury to forward brief report on the program’s requirements. Police chief o New chief is fully engaged. He's attended several community events. He’s been in the neighborhoods. Chief is in the process of hiring an officer to work narcotics. Inkster Police administration has lots of training dollars. Mark said Inkster has $47K remaining from the FDCVT grant earmarked for training as well. Pastors o Mark had a meeting with Rev. George Williams, an outspoken critic of the upcoming Parks & Recreation millage. Mark stressed the importance of millage passing and that Rev Williams should at most remain neutral on the matter. °16 FDCVT grant o Inkster has not started its application process yet, but does plan to apply. Last year the city received $900K in grant monies from Treasury. Lincoln Park — Oct. 7 — B Coulter, R Byrne, E Cline, D. Van de Grift, P Dostine Priorities o PA 345. Another councilman has endorsed the millage. Three councilmen have now officially endorsed the millage, and one other councilman quietly supports it. Unions are behind the millage. The fire union has been doing mailings, meeting with residents. More neighborhood town hall meetings are planned. City Manager Matt Coppler o Brad stated that the new city manager is a “good fit” in the city. Transition is very smooth. Coppler will be sitting on the Downriver Sewage committee, taking over for Brad. Lincoln Park Retiree Lawsuit o A status conference will take place Oct. 20. FDCVT grant o LP is applying for grant to help with DTE street lighting change over. DTE said city would save $100K. LP contemplating using grant funds in police department. RTAB recruitment membership o Coulter has one name thus far. It has not been easy for Brad to find willing participants. Final Order xxxEND_PAGE:treasury01_b36_6099_6552_060 o Treasury told Brad it should have a draft FO soon. With the new city manager on board, Brad said a lot more time will be freed up for him to focus on other projects. Gabriel Roeder Smith lawsuit o Nota priority until after the election results and PA 345 is decided. City is conserving money for other legal matters at the moment. Attorneys for Lincoln Park will be drafting a demand letter for a cost of $7K to $10K. MEDC / MSHDA o LP meeting MSHDA Oct. 12 in Lansing. Treasury is invited to the meeting. Miscellaneous © City pursuing $1.5MM SRF funding for sanitary sewer line projects. o MML declined coverage in the retiree lawsuit because the issue at hand deals with modification of healthcare benefits. ° Pontiac — Oct, 16 - J. Sobota, N. Nazarko, R. Byrne, R. Widigan, P. Dostine e Weekly Priorities: o District Court Decision: On Oct 7 the City received an Adverse Arbitration Ruling. Can Treasury ask AG to get Letter from Treasury to the City and Court instructing them not to pay the amount decided by the arbitrator. Email sent 10/07 @ 11:25, it has been forwarded to Randy and Eric for review. o Next week’s call: CA and the Mayor will be at a homeland security conference. Should cancel next week’s. o Comprehensive Compensation Study: Sobota is looking for bids from Mark Notley, and the MML and Fox for the projects. Are there any other companies to get bids from? o City Demolitions: Information is handed off to At-Well. Have demolished 427 of 944 identified. 53 Have been repaired by owners, 56 were dismissed. 303 condemned to be demolished, 50 of the 303 are with hardest hit. That leaves 250 within the City, of that 40 are occupied. = Once completed, the blight issues will be mostly resolved. o Cemetery Endowment Funds: City is still responsible for cemetery still, would like to re-establish it and deposit $1M. The fund was drained by EFM Stampfler. Possibly do $500K each year over two years. = Note for future EMs, may wish to tell them not to touch endowment funds. e $6M with Gray Financial Group: No updates. Nevrus has talked with the director of the pension board and raised concerns. o The Director is going to speak with the GERS Board attorney. o The City Council being kept up-to-date on the issue. xxxEND_PAGE:treasury01_b36_6099_6552_061 Two-year Rolling Budget/Audit: © Two-year: Not been addressed due to the Council not acting on the budget amendment and no agreement on the Sherriff’s contract. = President Waterman said that Council will vote on the budget amendment this Thursday. co Audit: Last few details are being inputed, bulk is done. = Fund balance will be $10.8M Community Development Positions: HR director had identified 12 candidates total. Sent resumes and questions to the Mayor. The Mayor has asked Joe and HR Director to conduct the interviews. Joe would rater the Mayor be involved. Royal Oak Township — Oct 5— R. Burgess, R. Byrne, P. Dostine Priorities for the Week/Miscellancous Items o Hired an accountant — Nicholas Fedewa -- approximately $55 to $60 /hr. Fedewa was recommended by Pontiac Finance Director. He initially will work full time to catch the township up in the books. Produce a cash flow analysis from Aug till Dec. Work up till the end of the year. Treasury recommended the new accountant stay on pass the end of the fiscal and perhaps even longer. The work is needed. o Montgomery has reduced its price from $17K to $10K. Still no deal, no close out of this invoice. Robert requested an Order so he can void the contract. Treasury noted that Montgomery could still take the township to court over the matter. o There is an office employee that the township must provide rights and benefits under the union contract. Robert did not budget for these costs. The township attorney has counseled against eliminating her position or denying her benefits because she will grieve the case. FY ‘16 budget o Robert said a draft of the budget is completed. He’s met with all the directors and elected officials regarding their budgets. He’s ready to show it to the Board at the next meeting (Oct. 15) or maybe earlier for review. In the budget are CIPs which have $50,000 place holders. o Robert has distributed project applications for FY 16 CIPs to all the dept directors. That process is underway. o Robert said tax revenues will be slightly higher in FY ’16 budget. o Oakland Co told Robert that chargebacks for 2016 will be small. o In 2017, the Fire, Street and Disposal funds should all break even. o The projected fund balance for Year End FY 16 is approximately $200K, which is less than the 15 percent recommended of the total budget amount ($2MM). o No money budgeted for township offices. Robert said he would have to do an amended budget should the issue arise in ’16. o Treasury requested a copy of the draft budget. Police Update xxxEND_PAGE:treasury01_b36_6099_6552_062 o Robert met with Oak Park regarding police services. Last week Robert gave Oak Park a written proposal. Oak Park has promised a response in two to three weeks. Grant School o Robert said this is not a priority until ROT gets a police contract first. Township-owned house o Update: This property has not been sold yet for $975. At its last meeting, the Board approved the selling of the property, not the sale of it. At the same meeting, the Board did not approve of the rehabbing of the house for $3K. Municipal Risk (sp) sent a crew in to dry the basement out (the basement experienced water damaged due to clogged drains from area restaurants using them as grease bins) remove damaged drywall etc. It has been estimated that $3K of rehab on the house would elevate the house in price on the market from $10K to $30K. McKenna o In 2014 the township paid approximately $100K for McKenna’s services. This year, the figure is approximately $64K. Robert has talked to the DDA and Parks about what their share in the cost will be going forward. He hopes to get a reduced price

Flint Call notes from this morning

From
Patrick Dostine
Categories: Blue Category Flint — Oct. 14 — N. Henderson, Mayor Walling, J Freeman, F Headen, Wendy, R. Byrne, E. Cline, P. Dostine e Priorities o Henderson bringing two amendments to Oct 14 RTAB: $2M budget adjustment (money from the Water Fund fund balance) and Agreements needing execution between Flint and DWSD, and Flint and Genesee County. o The city anticipates connecting to DWSD in the next few days. « Lawsuit o Miller Canfield still representing Flint in both the Kincaid and Shears lawsuits. Henderson repeated again that Flint will need assistance in maintaining Miller Canfield as counsel. « Public Safety © Fires are down in Flint. Because of that, Flint no longer qualifies for some grant dollars. o Tierl crimes (homicide, rape, armed robbery) are down in Flint. o Chief of Police (and Flint) is participating in Violence Reduction Network (VRN), a Dept. of Justice initiative that provides technical assistance and other in-kind crime prevention assistance to cities with higher than average violent crime. Patrick Dostine State of Michigan Department of Treasury Local Government Financial Services Division, Office of Fiscal Responsibility Cadillac Place 3044 W Grand Bivd Detroit, Ml 48202 (office) 313.456.1772 [email protected] xxxEND_PAGE:treasury01_b35_5648_6098_426 STATUS OF FLINT WATER: October 14, 2015 Flint Receivership Transition Advisory Board meeting today to consider budget amendments to pay for temporary reconnection to the Detroit water system Treasury staff from Bureau of Local Government will be meeting with City officials to review overall budget and cash conditions o Fund Balance in the General Fund is currently projected at $4M by June 30, 2016. This is a projected increase of $1M from FY 2014-2015 o Fund Balance in the Water Fund is currently projected at $6M, which is a decline of $8M due to non-payment of water bills Negotiations between the City of Flint, Genesee County and DWSD remain in progress to finalize the necessary agreements for the City to temporarily reconnect to the Detroit water system © Preparation of the pipeline to receive water from DWSD is underway. The City believes that a physical connection can be established this week © The City has requested clarification if it should begin receiving water from DWSD before the State Legislature takes action on the request $6M aid package Both the Kincaid and Shears lawsuits remain in litigation. Potential losses of $30M are possible. The City’s request to Treasury for financial assistance for outside legal consul is still pending xxxEND_PAGE:treasury01_b35_5648_6098_427 Weekly Critical Issues —October 14, 2015 e Allen Park— | have been advised that two new RTAB members are being appointed. They are Mark Wollenweber and Scott Lites. | have asked Eric to schedule an orientation for the new members before the next RTAB meeting on November 4". The brownfield issue.......... ® Benton Harbor-The lawsuit with the former Public Safety Director and two former employees is a major issue for the City. Darwin has indicated that it will cost the City $1.7M to settle these three cases. They are only partially insured. | have advised Darwin to seek the City Commission's approval for the Finance Director's Search. The cost is $10,000 for the MML Proposal. The City * Ecorse — The City is proposing a part-time fire department. Their five year financial plan has been revised, according to the City Administrator it is balanced. We are checking to see if the City Council has approved. © Flint — Lawsuit on water rates and the lead issues have Flint in a crisis mode. The City believes that they have reached an understanding with the Genesee County Drain Commission to reconnect to DWSD Natasha has sent me a revised cost ($250K to $350K) from Miller Canfield to represent the City in the Shéars and Kincaid cases, Treasury is determining the level of support, if any, to provide the City in this matter. | informed Natasha this morning that the legal representation is still being “discussed”. Flint RTAB meeting next week. e Hamtramck-We have several names for the RTAB position to replace Cathy. Segal has developed a work plan for phase 3 of the pension study that is being discussed. The City has hired Alan Young for audit services but that decision was rejected by the RTAB. Katrina wants to reorganize staff. Overtime last month was $60K, we are asking her to get quotes for a police study. Treasury will pay $25,000 for the study. e Highland Park-The City hired a collection firm to collect the past due water and sewer bills. Hiring a collection firm is a requirement of the loan agreement. Cathy has indicated that the OPEB savings of approximately $750K will be implemented by October 1. | will be receiving an OPEB report from Meadowbrook soon. The City has purchased $300,000 of new water meters as part to the FDCVT grant award and are installing them. The City Council conditionally approved the DWSD agreement but no word from DWSD or Great Lakes Water Authority. Regular billing of water and sewer customers has begun. The plans for the demolition of the High School Building are being reviewed. | expect the project will take place in the spring. e Lincoln Park-Brad is placing a PA 345 request on the November Ballot seeking approval of 6 mills to fund the City’s pension system. More City Council members are supporting the millage request. Brad has prepared a four month plan which is being updated. His exit will be in the first week of January. The new city manager, Matt Coppler is fitting in the organization. We will be discussing the final order with Brad next week. We are hoping to find several RTAB candidates soon. « — Inkster- the City won its appeal on the water billing lawsuit. Mark said the city will be discussing its options. The City is negotiating with Wayne County on its $4.9M sewer debt. A judgement levy for several years will be likely be placed on the July 2016 tax roll. Patrick and | will be xxxEND_PAGE:treasury01_b35_5648_6098_428 meeting Mark next week. Mark has indicated that the City is updating its Park and Rec Master Plan. | have encouraged Mark to meet with the ministers. Pontiac-Jane Di Sessa will start on October 26. A contract has been drafted but not signed as of yet. The Mayor and { will be meeting with two council members to discuss the hiring of an executive secretary and other issues. The Pontiac RTAB exit plan is nearing completion. The Mayor would like to do a study of the Phoenix Center. Problem with the GERS Board. River Rouge—the five year financial plan is not balanced yet. Do we want to exit without a balanced five year financial plan? ~The Mayor has drafted a revised plan that is even more favorable to Ecorse. The City was chosen by the Governor to be a part of the Rising Tide Initiative. Royal Oak Township- We may receive a proposal from Oak Park for police service. Additional discussions with Ferndale and Hazel Park are needed. The Township needs to submit another grant application for police funding. We have received Robert’s six month plan. Patrick will be assisting Robert on several items. Montgomery and Co. the accounting firm has submitted an invoice for $17,000. Robert has begun discussion on the new budget. He wants to hire Mr. Fedewa for accounting. Miscellaneous Items—the draft of the October Governor’s Memo is finished. Staffing update and lunch on Monday with staff. RTAB candidates are being vetted by the Governor’s Office. The draft exit plan for several communities is nearing completion. | sent a consent agreement template for your review. FOIA request from ACLU. | sent you a document on the date(s) the newly elected officials will take office in the distressed local units. Giarmarco contract update. Upcoming Town Hal! Meeting xxxEND_PAGE:treasury01_b35_5648_6098_429 Byrne, Randall (T. reasury)

Signed Resolutions

Hello All: I have attached the signed copies. I will bring the signed copies for distribution in the meeting today. Thanks, Natasha L. Henderson, City Administrator City of Flint, Michigan xxxEND_PAGE:treasury01_b36_6099_6552_098 RESOLUTION NGO.: 1508732, presentep:___/0- /A- 15 ADOPTED: RESOLUTION AUTHORIZING A BUDGET AMENDMENT TO INCREASE THE WATER AND SEWER BUDGET BY $12,000,000.00 AND TO ALLOW FOR EXPENDITURES FROM THOSE FUNDS TO FACILITATE THE SWITCH BACK TO THE DWSD WATER SUPPLY BY THE CITY ADMINISTRATOR: Due to the serious health threat facing the residents of the City of Flint, the Administration has been diligently working toward a feasible and speedy resolution to the City’s water crisis; and Through the commitment of $6 million from the State of Michigan and $4 million from the C.S. Mott Foundation, a total of $10 million in contributions have been pledged to assist the City with the cost of purchasing water from the Detroit Water and Sewerage Department and its successor, the Great Lakes Water Authority, until the City is able to receive water from the Karegnondi Water Authority (KWA). The City Administrator and the Mayor have agreed to the acceptance of these funds. At this time, the KWA reports that construction is on schedule to be completed by June 30, 2016. The City estimates that the total cost to purchase water through DWSD will be $12 million for 9 months. The balance of $2 million not covered by the generous pledges of State and Local resources is the responsibility of the City, A budget amendment is necessary to reflect both an increase in revenues for the receipt of $10 million in assistance and $2 million of budgeted Use of Fund Balance and an increase in expenditures of $12 million for the purchase of DWSD water supply. IT IS RESOLVED that the Finance Department is authorized to process a budget amendment to the appropriate Water and Sewer funds to facilitate the switch back to the Detroit water system as soon as practicable. Specific revenue and expenditure line items will be provided by the Chief Financial Officer. eter M. Bade, City Attorney APPR APPROVED AS TO FINANCE: APPROVED BY THE FLINT CITY COUNCIL: ENTED TO CITY COUNCIL: 10/12/2015 ADOPTED BY CITY COUNCIL: 10/12/2015 xxxEND_PAGE:treasury01_b36_6099_6552_099 ISO08975° RESOLUTION NO.: pREsENTED:___/O~- /A = 15 ADOPTED: RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO TAKE NECESSARY ACTION TO CONVERT TO THE DETROIT WATER SYSTEM BY THE CITY ADMINISTRATOR: In order to promote the health, safety and welfare of this community, it is in the best interests of the City of Flint for the Detroit Water and Sewer Department (DWSD) to supply the City with treated water pending completion of the Karegnondi Water Authority; and In order for DWSD to supply the City with water, it will be necessary to utilize pipe owned by the Genesee County Drain Commission (GCDC); and The City, DWSD and GCDC are actively negotiating the terms of the necessary agreements to ensure this transition occurs as soon as possible; and IT IS RESOLVED that the City Administrator is hereby authorized to enter into agreements with DWSD and GCDC for conversion to the Detroit Water System. APPROVED AS TO FORM: fe M. HX APPROVED BY CITY COUNCIL: ESENTED TO CITY COUNCIL: 10/12/2015 ADOPTED BY CITY COUNCIL: 10/12/2015 xxxEND_PAGE:treasury01_b36_6099_6552_100 Dempkowski, Angela (Ti reasury)

Flint call tomorrow morning

From
Patrick Dostine
Flint — Oct. 14-9 AM, Call items h Mayer ria eA welt Tm Priorities - Vo are tcns 2H Fes Deeb [CA authored te cater inte Coubvact ® Water -2) Peep ct Fe section undemmey p Pesttbm Cee ctiey wi days > Wort Fee beg aetion 7 ® Connecting to DWSD © Agreements - M09 wl Ceanity Cag cing Sy Preghse bg Made * Legal counsel © Miscellaneous - Eccriwing H&n on wh te pay fer woo ; Phetes Fon Request Ge de ver Execs Patrick Dostine State of Michigan Department of Treasury Local Government Financial Services Division, Office of Fiscal Responsibility Cadillac Place 3044 W Grand Blvd Detroit, Mi 48202 (office) 313.456.1772 [email protected] Loader Por re ees = a) Bro - Ht Vv Kegel Fees Gor hawsarls - , ‘: Peorebe t4§ © Grate help wg Puscd Balance Coty Freky ro Pay Fer brands Pb eTerh Coney me Murs s ewer wivRav engevag Oa “ t ER Y in water CHEM — Sheuld beet aS 7a A 'e xxxEND_PAGE:treasury01_b35_5648_6098_194 Ryan, Howard (T reasury)

Flint Water Issue: Memorandum RTAB1.PDF

Importance: High FYI. | just received this from Natasha regarding the City’s request to reconnect to DWSD. The City is asking that the RTAB consider this tomorrow. | am in the process of sending this to the Board. It appears that the City is planning on taking the $2M from Fund Balance. Eric Cline | Department Manager | State of Michigan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228 E-mail cliner] @michigan.gov CONFIDENTIALITY NOTICE: This e-maul, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution as prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the onginal message and attachments Thank you.

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