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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