Correspondence between

Just to keep you in the loop re: Flint media inquiry DEQ

Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Importance: High Wayne & lare tied up for the next hour+. Can you guys start looking at this.

Privilege Work Product -11-16-2015.pdf; Draft Flint Drinking Water Events Timeline 11-6-15.docx FYI

All- | finally found the document | was asking about yesterday (see attachment). It was embedded within a series of pdf’s Wayne had e-mailed last week. It indicates that support and a vote from electeds was a condition of Flint joining KWA. Terry xxxEND_PAGE:treasury01_b35_5648_6098_309 GENESEE COUNTY DRAIN COMMISSIONER'S OFFICE JEFFREY WRIGHT COMMISSIONER G-4808 BEECHER ROAD, FLINT, M1 48532 PHONE (810) 732-1890 FAX (810) 732-1474 FOR IMMEDIATE RELEASE CONTACT: Jeff Wright March 26, 2013 810-287-1925 What: Jeff Wright Statement on Flint City Council Approving Resolution to Join KWA. When: March 26, 2013 Additional Info: Jeff Wright, CEO of the KWA, today pralsed the Filnt City Council for voting to approve a tesolution to officially have the City of Fiint Join the KWA and Its’ water line, “t have sald from the beginning that this decision must be made by Flint’s City Council and Mayor,” sald Weight. “t appreciate the council voting the way they did, but even more than that, J am glad the residents of Filnt were able to have thelr voices heard via thelr elected officials.” The next step In the process will come with the KWA Board executing the contract for the City. *The most Important aspect from the vote Is the fact that we as an Authority can move forward knowing Flint's intentions,” sald Wright. Despite Emergency Manager Ed Kurtz publicly supporting the project, Wright had made a vote by council a condition of Flint Joining the KWA so the residents would have their say. “There is a basic tenet that government Is best when It has focal control. We saw that with the council vote. Nobody, whether they five In Flint, Grand Blanc, Davison, Fenton, or anywhere In Genesee County, should have these types of decisions made by people who live outside of thelr community,” sald Wright. At the next Water and Waste Advisory Board meeting a vote will be taken to award a contract for construction of the intake portion of the water Jine. All bids were submitted to the board at thale last meeting for review. @ tier xxxEND_PAGE:treasury01_b35_5648_6098_310 Workman, Wayne (TREASURY)

FYI— Would like to chat some time today... Obviously, any response would be coordinated with Gov’s office...

Agreed. They also voted 7-1 to leave DWSD Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

| noted in one of the slides that the council voted 7-1 to move back to DWSD and Jerry is quoted as not being in favor of it. | think they left out his reasoning for that and that would have been nice.

Finally M Live recognizes that DWSD kicked Flint off the system. Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

It looks ok to me as well

importance: High All- The Free Press is constructing a “timeline” of the Flint water situation...and I’ve been asked for the following: -dates for EM appointments, departures -the date Dillon signed off on KWA | am going to send some other pertinent dates and documentation. My planned response is below...please advise on any suggested changes. Flint EM dates for financial emergency declared in December 2011 Mike Brown, apptd 12-1-11 (when fin emer declared under PA 4 of 2011) Ed Kurtz, apptd 8-8-12 (when PA4 was repealed in Aug 2012, Brown couldn’t serve as EM, PA 72 back in effect) Mike Brown, apptd 7-4-13 (Kurtz retired; PA436 in effect) Darnell Earley, apptd 10-8-13 (Brown resigned) Gerald Ambrose, apptd 1-13-15 (Earley appointed DPS EM) Financial Emergency resolved, 4-29-15 (RTAB apptd) Other dates June 26, 2012 — Letter from EM Brown to DWSD seeking permission to blend river water with DWSD water (attached). Sept. 20, 2012 — Letter from EM Kurtz to DWSD requesting written permission to implement blending (attached). March 25, 2013 — The Flint City Council endorses joining KWA (see url below) http://blog council approves _re.ht mol April 11, 2013 — Treasurer Dillion sends letter to EM Kurtz (attached) noting conditional approval of move to KWA (pursuant to PA436), pending a review of DWSD’s last, best offer. April 16, 2013 — EM Kurtz informs Treasury that the City will join KWA (attached). April 17, 2013 —- DWSD transmits letter to EM Kurtz terminating service to Flint, effective April 17, 2014 {attached). April 17, 2014 — Water service from DWSD officially ends. xxxEND_PAGE:treasury01_b35_5648_6098_044 Dempkowski, Angela (Tr reasury)

fyi

When or if you have the time click on the link to the Mayor interview Flint mayor to state: Approve plan “as fast as humanly possible” to help keep lead out of water 14s LINDSEY SMITI1. 16 HOURS AGO Share Twitter Facebook Googlet+ Email xxxEND_PAGE:treasury01_b37_6553_6782_196 Flint leaders issued a water advisory last week after health officials raised concerns about lead levels in children's blood tests. Credit Steve Carmody / Michigan Radio Flint hasn*t been using any corrosion-control method since it switched from Detroit’s water system in April 2014. Corrosion-control treatment helps keep lead out of drinking water. Since the switch, more kids are showing up with elevated levels of lead in their blood. Flint Mayor Dayne Walling says he wants to put corrosion-control treatment back in place, but he needs state approval first. The state says it’s going to take a little while to implement. “One of my requests to (Michigan’s) Department of Environmental Quality director is that (approval) be accelerated as fast as humanly possible,” Walling said. “Whatever decisions are coming next, we need that corrosion control in the water treatment process that we have now,” he said. Walling was a guest today on Stateside with Cynthia Canty. Listen Listen Listening... 0:00 16.01 Listen to Flint Mayor Dayne Walling on Stateside. Flint spokesman Jason Lorenz says MDEQ made the recommendation to put corrosion-control treatment into the water supply last month. But, he says, it needs MDEQ Director Dan Wyant’s official approval. There’s been some debate over whether Flint should have had corrosion control in place the entire time. MDEQ officials have argued to the U.S. Environmental Protection Agency that corrosion control is not technically required yet, because the Flint River is a new water source. “You have to have to do a full year of studying” the water chemistry as it behaves across the system before implementing corrosion control, MDEQ spokesman Brad Wurfel said. He says that’s the only way to know what corrosion-control treatment to use. That period of study was to be completed by June 30. As the DEQ reads federal regulations, Flint technically has up to two years after the study to install treatment. But Wurfel says an announcement on the state's decision will come by the end of this week, and "the prescription for optimizing the system for corrosion control is going to be done in Flint by the end of this year." "If 1 handed you a bag of chocolate chips and a sack of flour and said 'make cookies,’ you'd still need a recipe right? They need to get the results from that testing to understand how much of what to put in the (new water source),”" Wurfel said. "We have a plan to expedite this with the city ... and folks can take some comfort in that," Wurfel said. It's not clear yet how much the treatment will cost, but Wurfel says "this won't break the bank.” A state- appointed emergency manager made the interim switch to the Flint River to save the city money. Related: Have you missed parts of the Flint water story? Here's a quick rundown. The U.S. Environmental Protection Agency has not yet answered this question: Was Flint required to have some form of corrosion-control treatment the whole time? At face value, the EPA rules are clear, all water systems that serve more than 50,000 people must have some kind of corrosion control. xxxEND_PAGE:treasury01_b37_6553_6782_197 But when you switch water sources, there is apparently some room for interpretation. In approving updates to this federal regulation in 2000, the EPA noted that “water systems need to make treatment changes, on occasion, to react to changing circumstances.” In these cases, the rule does not “prevent a state from approving treatment changes,” but it’s not entirely clear if the state can approve having zero corrosion-control treatment. One key section of the rule change reads: “One commenter requested that EPA clarity in the cule language that (large water) systems are not required to have (corroston-contral treatment) physically present. EPA disagrees that this is appropriate.” “Vor large water systems, (the federal rule) does not eliminate the need to have any (corrosion-control treatment) in place, unless the water system can demonstrate to the satisfaction of the State that such treatment will have no effect on reducing the levels ef lead and copper at the tap ... EPA expects few, if any. large water systems can make this demonstration without (corrosion-control treatment).” Flint residents can be sure about one thing: This period of study and approval won’t happen the next time the city switches water sources. The city expects to stop using the Flint River when a new regional water system in Genesee County is completed, slated for the end of 2016. According the MDEQ’s Brad Wurfel, that’s because they won’t need to study the nature of the new water source — Lake Huron. Because Detroit's water system uses water from Lake Huron, Flint will be able to use the same corrosion-control treatment it did when it was hooked up to Detroit’s system. Related Program: Stateside with Cynthia Canty xxxEND_PAGE:treasury01_b37_6553_6782_198 Workman, Wayne (TREASURY)

| heard this story in North Carolina last night. It is journalists at their worst Sent from my iPhone Begin forwarded message:

Attached is Dan W’s handout from the meeting this afternoon with the Governor's office et al. At this juncture DEQ appears to be the lead (with DCH). You will note this culminates with a press event this Friday in Flint where various listed ‘next steps’ will be announced. For us/Treasury in terms of our more immediate ‘homework’ assignment... We are checking whether distressed community $s can be used to purchase home filters. And we trying to confirm whether the state revolving fund (drinking water side) legislation could be amended to permit replacement of lead piping say from the curb to the residence, etc [#9]. Dan implied it was already permissible under Fed guidelines/rules. 14 xxxEND_PAGE:treasury01_b37_6553_6782_181 4124, 206 TS. Wan Flint Update 9/28 fone Yynltl beabeut Issues: - DWSD switch - Emergency Declaration - Edwards issue - Testing protocols Flint Drinking Water Action Plan 1. Governor Snyder names Dr. Eden Wells as Flint drinking water Public Health Advisor. . Action to date: Dr. Wells has been brought in and Is reviewing the Hurley Health information. All 13 Flint schools water will Immediately be tested to ensure that drinking waterissafe, Wel Chutis + till de Ruods Action to date: Phone call with Superintendent and Facilities manager to identify schools. Phone cail with Genesee County Public Health, DEQ and Flint schools aftemoon of 9/29 to discuss testing protocols and timeline. DEQ has volunteered to pay for testing. Checking with MDE on fund availability to replace lead lines if they are identified in the testing. . Advisories will be disseminated recommending citizens flush your cold water pipes, use only water from the cold water tap for drinking, cooking and especially for making baby formula. Action to date: This step has already started to occur. . Convene a safe drinking water “Technical Advisory Committee” to ensure best technology, practices and science Is being utilized, including EPA's expertise and assistance from their Office of Research and Development. Action to date: Committee will meet October 7. EPA will have Tom Burke, who heads up EPA's Office of Research and Development, participate on the a * : e abt Committee, a iABan Prof will alse passed Eyton! . Implementation of fully optimized corrosion controls in the Flint drinking water system. Action to date: Technical Advisory Committee is meeting October 7 to recommend this. Flint will submit permit application to DEQ October 8. Corrosion control will begin by end of October. hn us Want {ae eget “dn wt of GLWA mee xxxEND_PAGE:treasury01_b37_6553_6782_182 6. Expanded water testing of at risk properties. Action to date: EPA and DEQ have a conference call at 1:45 PM 9/29 to discuss additional testing locations and protocols. 7. Offer water testing at no cost to Flint residents to assure water is safe. Action to date: City is already affering. DEQ will be discussing cost issues with the City. ial 8. Offer|bottled water And premixed formula if test results Indicate high levels of leat. Wee i Ge <chenyy Action to date: DHHS evaluating. diag at “bocsl Sein 9. Accelerate water system improvements to address replacement of lead service lines. : ‘ Action to date: EPA has indicated that federal Drinking Water Revolving Loan money can be used to replace private service lines. State law needs to be changed to allow this to occur. _—_oooo K 10. Provide filters to residences of Flint. Action to date: Ananich has indicated United Way would supply some. Harvey to follow up with Meijer. dist ) cowe 4. &s YAMA 4 11. Expedite Completion of KWA. Action to date: DEQ had initial conversation with Drain Commissioner to indicate help in moving any remaining permits. Next Steps: 2 Press Conference in Filnt - Friday, October 2, 1:30 (yo oe ., \e- Participants as Mayor of Fiint Dan Wyant — Michigan Department of Environmental Quality Nick Lyon ~ Department of Community Health Susan Hedman — Region 5 Administrator or EPA Harvey Hollins — Governor's office Local Public Health Department oh €) plells “AN t: Leena Hew BRA urs * 1oaa0 Altns—> %50,000 [ Ypoitt Couardetisu | xxxEND_PAGE:treasury01_b37_6553_6782_183 Curry or Detrorr 735 RANDOLPH STREET ‘WATER AND SEWERAGE DEPARTMENT Detrorr, MIcHicAN 48226-2830 Orrice oF THE DirEcTOR WWW.DETROITMI.GOV September 30, 2015 Via email: and U.S. Mail Ms. Natasha L. Henderson, City Administrator City of Flint 1101 S. Saginaw St. Flint, Michigan 48502 Dear Ms. Henderson: Thank you for your inquiry regarding the possibility of reconnecting the City of Flint to the Detroit Water and Sewerage Department’s (DWSD) Water Supply system. Director McCormick has asked me to respond to you and provide a brief outline of the basis for that reconnection. However, I want to again emphasize what Ms. McCormick has previously stated to your City Council on this issue: DWSD is willing to sit down and talk with the City of Flint without pre-condition, if that is mutually desirable. I would be remiss if I did not point out that on June 12, 2015, the City of Detroit and the Great Lakes Water Authority (GLWA) executed a Lease Agreement that provides for the GLWA’s operation of the Regional Water Supply System. At present, we are transitioning management of the system from DWSD to the GLWA while certain Conditions Precedent of the Lease Agreement are satisfied. We have made substantial progress towards satisfying these Conditions Precedent with a goal of having GLWA commence full system operations on or before January 1, 2016. I can assure you that, like DWSD, the GLWA is concerned with the challenges Flint’s residents have faced in recent months, and will be willing to discuss service to your City. That said, here is a likely list of issues that would need to be addressed: 1) Rates: In Sue McCormick’s January 12, 2015 letter to Flint, she indicated that the rates Flint would pay for the remainder of the then current 2014-2015 Fiscal Year (FY) would be “the same rates Flint was paying as a terminated customer when it left the system but modified to include the 4% increase experienced by all other DWSD wholesale customers in 2014.” As we are now in the 2015-16 FY, that offer must be modified to include an additional adjustment similar to that which was received by other customers. In this regard we propose that the rates be adjusted as follows: a) Starting with the 2013-2014 FY terminated rate; and b) Adding a 4% adjustment to that rate to account for the 2014-2015 FY increases; and ¢) Adding an adjustment equal to the average Suburban Wholesale Charge Adjustment for the current 2015-2016 FY. This rate would remain in place until June 30, 2016, the end of the current 2015-2016 FY. xxxEND_PAGE:treasury01_b37_6553_6782_184 Ms. Natasha L. Henderson, City Administrator City of Flint September 30, 2015 Page 2 — oo pease d) Based upon the above considerations, the resulting rate structure is a fixed monthly rate of $662,100 and a commodity rate of $8.93/Mef for the current 2015-2016 FY. Please note that this rate structure is designed to be applicable to incremental water sales over and above water sales to the Genesee County Drain Commission. Depending on how water is provided to the combined GCDC/Flint customer, alternative rate structures may be appropriate, e) Additionally, DWSD recently changed its wholesale customer billing methodology as follows: Flint’s calculated share of the FY 2016 Budget is allocated 60% to the Fixed Monthly Charge and 40% to the Commodity Charge, which is consistent with the adopted FY 2015-2016 water wholesale rates f) In extending this proposal, our assumption is that the service provided is to Flint only and computations are based on data from our previous customer relationship. g) It is anticipated that under the management of the GLWA, the rates for the 2016-2017 FY will be computed using the same methodology as applied to all other Water Supply System customers. The proposed rate methodology is intended to ensure that Flint is treated fairly by using the average wholesale customer adjustment in the current Fiscal Year, and the same methodology as all other customers. 2) Term: DWSD understands that Flint’s current long-term desire is to receive water service from the KWA. Under these circumstances, Flint would be expected to remain a DWSD customer from the time of reconnection until the time it begins to receive service

Fyi... you almost can’t win Governor helped hush-hush delivery of water filters to Flint pastors Print Email y Ron Fonger | [email protected] The Flint Journal on September 29, 2015 at 101 PM 0 Reddit Email FLINT WATER e Governor helped hush-hush delivery of water filters to Flint pastors e City administrator asks Detroit about reconnecting Flint to Lake Huron e State Sen. Ananich joins call for disconnecting city from Flint River « Flint schools chief seeking water donations for students after lead warning » Clean water activists demand Detroit reconnection in Flint after lead study All Stories xxxEND_PAGE:treasury01_b37_6553_6782_178 Michigan Gov. Rick Snyder delivers his 2015 State of the State address in this Associated Press file photo Associated Press file photo FLINT, MI -- Gov. Rick Snyder quietly helped deliver 1,500 water filters to Flint last month -- even as state officials gave assurances that the city's tap water was safe and meeting all regulatory standards. Dave Murray, a spokesman for Snyder, confirmed that the filters, distributed by the Concerned Pastors for Social Action, came from a “corporate donor that does not wish to be recognized but cares deeply about the community." The donor "worked with the governor to provide 1,500 faucet filters to be distributed to city homes,” Murray said in an email. The state's involvement in the filter distribution was never publicized and pastors told The Flint Journal-MLive Tuesday, Sept. 29, that they were asked by staffers in the governor's office not to speak about it. Flint city Councilwoman Jackie Poplar raised the subject during a council committee meeting Monday, Sept. 28, as officials discussed the potential for Flint to reconnect to the Detroit Water and Sewerage Department. Recent testing and studies show lead levels have been rising -- both in water and children's blood. "Those filters came from the governor,” Poplar said. "The governor seems to be the one with the golden key" to make something happen, she said. Pastors involved with the giveaway of the filters, which were designed to remove total trihalomethanes (TTHM) as well as lead from water, said they accepted the condition that they not discuss the state's role in securing the equipment, said the Rev. Allen Overton. xxxEND_PAGE:treasury01_b37_6553_6782_179 Overton and the Rev. Alfred Harris said they thought the arrangement was odd, but did not want to jeopardize receiving the water filters, which Flint residents waited in line for and which were given away in just three hours. "If the water was OK, why would the governor work with someone to provide the filters?" Harris said Tuesday. "I think the state working with the private donor is an admission (that) the people needed some help." "Our objective was to help the people. (Now) everybody is trying to cover their behinds," Harris said. Flint took over treatment of its water supply from the city of Detroit in April 2014 and switched its water source from Lake Huron to the Flint River. In the 17 months since, the city has struggled to keep bacteria out of city water, was found in violation of the Safe Drinking Water Act because of TTHM levels, and last week declared a health advisory after a study showed elevated blood lead levels in children since the transition. Murray said the governor's office simply "did not want to draw attention to (the state's role in the filter donation), respecting the wishes of the donor.” "Our focus is on helping the people in Flint. We are grateful to the pastors for working with us on this," Murray said in an email. The Snyder spokesman said Flint water "does meet state and federal safety standards" but said the filters also are a benefit to customers with water quality issues such as discoloration and odor. "We are talking with other businesses and groups that might be able to expand the (filter) effort,” Murray's email says.

Importance: High council approves re.html Walling previously said the city would save $19 million over eight years by getting water from the KWA. “It’s a historic night in the City of Flint,” Walling said. “The savings will be less with the capacity level approved by city council because there will be increased treatment cost for the river water.” He said the DEQ told the city it needed to get 18 million gallons per day or there would have to be additional work done at Flint’s water plant. Flint’s water plant and the Flint River is currently the backup for Flint and Genesee County, however, the plant only operates four times per year. Tuesday’s meeting followed weeks of discussions and special meetings surrounding the resolution. “We got there,” Councilman Joshua Freeman said. “That’s the important thing.” “Going with Karegnondi is the best decision. We have no opinion on the economics of the decision,” said Rebecca Fedewa, Flint River Watershed Coalition executive director. “If we start drawing water out of the Flint River, we are at risk of having to start releasing water from our reservoirs.” xxxEND_PAGE:treasury01_b37_6553_6782_153 Stanton, Terry A. (Ti reasury)

Flint DEQ backgrounder. Some of the info may not be 100% accurate. Note the highlighted sections:

Per our conversation, a quick correction: our history has it at May 2014. b xxxEND_PAGE:treasury01_b37_6553_6782_147 DRAFT City of Flint Water System Background Water Service Land Area 34 square miles 550+ miles of public water mains 250+ miles of water mains 75+ years old 70% of public water mains are unlined cast iron pipe Service population 99,763 Service connections 32,900 Flint Water System established in 1883 Flint Water Treatment Plant #2 completed in 1954 Connection to Detroit Water and Sewerage Department 1967 Flint Water Treatment Plant #2 rehabilitated 1999 — 2005 City of Flint Timeline December 2011 — Flint Emergency Financial Manager Appointed by Governor Snyder April 2013 — Flint rejects DWSD contract and instead joins the Karegnondi Water Authority April 2013 — DWSD sets termination of Flint water service contract to April 17, 2014 June 2013 — Karegnondi Water Authority groundbreaking June 2013 ~ Flint Requests full time use of Flint Water Treatment Plant with Flint River May 2014 — Flint stops purchasing DWSD. Starts using the City of Flint WTP and Flint River August 2014 - Flint E.Coli Bacteria violation, Partial System Boil Water Advisory August 2014 — Disinfection Byproducts, DEQ requests preemptive Operational Evaluation September 2014 — Flint Total Coliform Bacteria violation, Partial System Boil Water Advisory November 2014 — Disinfection Byproducts violation begins January 2015 — 1* 6 month lead and copper sampling completed 100 samples, 90% = 6 ppb April 2015 — Flint Financial Emergency Ends July 2015 - 2" 6 month lead and copper sampling completed 69 samples, 90% = 11 ppb August 2015 — Disinfection Byproducts return to compliance August 2015 — Flint required by DEQ to recommend and install Optimized Corrosion Control Treatment January 2016 — Flint plans to have Optimized Corrosion Control Treatment operational July 2016 — Planned connection to Karegnondi Water Authority (Lake Huron water to Flint WTP) xxxEND_PAGE:treasury01_b37_6553_6782_148 Stanton, Terry A. (T reasury)

FYI Sent from my iPhone Begin forwarded message:

i don’t know how you respond. Attached is an email } just sent to Dennis et al. We/Treasury don’t do the distressed cities $s. Shouldn’t that come from TED ? If the state gives Flint money; all of the urban communities will be standing in line. They all have problematic water systems.

Importance: High Guys... The Flint Journal is asking for a reaction from the Gov’s Office...on Walling’s “request.” The letter is attached and does indicate that Walling understands “forgiveness” is not an option on the existing loans...but that he seems to be requesting a “new” loan that could be forgiven...which | doubt is feasible or legal, etc. Please advise on what you feel is a most appropriate response... Should we say we “encourage” the city to apply for a distressed cities grant (total grant is only $5m) and suggest they work with their respective legislators to increase the grant limit, if they feel that is an appropriate avenue? If we do that, Dave will be asked if the G supports an increase...not sure we want to go there???