Governor Snyder, Since our meeting yesterday afternoon, we have learned from Miller Canfield that the City of Flint has
succeeded in Genesee County Circuit Court in substantially reducing the plaintiff's requested damages in the Shears
case. We are working with Miller Canfield and the City to get a solid estimate of the savings, but it appears to be
significant. in addition, Miller Canfield believes this decision will have a beneficial impact on the other water rate case
(Kincaid). As additional information is available we will keep you updated. Wayne
Wayne L. Workman
Deputy State Treasurer
Michigan Department of Treasury
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Workman, Wayne (TREASURY)
So we don't forget the money; Flint is now running a $14,000,000 deficit in the
WaterFund due to two lawsuits that have gone against the City. It has reduced what they can bill some folks have
stopped paying believing they will be getting big credits or refunds. Also water cont be shut off for nonpayment under
one suit
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( think this information is very helpful. It will not answer the main question about the quality of the water (DEQ is
working on that through Brad | believe), and the color and smell of the present water, but it does get us to the answers
to the less subjective issues. Frankly, the only way the issues will be totally resolved is when the KWA comes on line and
the water is perceived to be cleaner and healthier.
| am somewhat surprised that the leadership in Flint has not responded better to the community questions, which don’t
seem unreasonable at all. Seems like Harvey has a better network into some of the neighborhoods than the city
does. The KWA PR department definitely needs to do some outreach or they're headed down the same road as
DWSD. Do you know if they go out on a regular basis to the community and talk about the rates, costs, etc.?
Importance: High
All, Attached is a memo and water rate summary answering several of the questions raised by the Flint pastors. Please
let me know if you have any questions. Wayne
Wayne L. Workman
Deputy State Treasurer
Michigan Department of Treasury
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Allison, Dennis, and Beth: Attached is the periodic update on distressed local governments. Please pass on to the
Governor as appropriate. If you have any questions, please don’t hesitate to call. Wayne
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Why not, we haven’t anything else to do except spend our time chasing our tail. This issue isn’t going to go away until
we do some serious comms work in the city.
fi this does happen, we need te figure who would hand out the water. It should mot be the City. It would undercut every
point they are making. it probably should also be reserved for peanle who can't afford to buy water.
Might want to get Jarrod and Terry Stanton on this as well as Harvey. Otherwise it will get out
of hand. It's in the city's long term interest to make the KWA work and we can make the river
water safe, but we need to work with the ministers this week to help them out. It's tough for
everyday people to listen to financial issues and water mumbo jumbo when all they see is
problems. You can't expect the ministers to hold the tide on this problem.
How about cutting a deal with Ice Mountain or Bill Young and buying some water for the people
for atime? $250K buys a lot of drinking water and we could distribute it through the churches
while we continue to make the water even safer.
If we procrastinate much longer in doing something direct we'll have real trouble.
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In case you did not see this. Will be reviewing Water System info over the weekend. Maybe
something Monday, Tuesday latest. 1 need to edit also. Wayne
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AH: Attached olease find an update of issues and actions regarding cistressed local governments ane schoat districts
through November 2014. Let me know if you have any cneestions cr need additional information.
Wayne Workman | Deouty State Treasurer
State of Michigan | 430 WW. Allegan Street | Lansing, Mi 48g22
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The boil water advisory was lifted yesterday while | was talking to John Gleason. The source has still not been
identified and the plant and DEQ are working to figure it out. ! told Gleason that his suggestion to have
contingency plans for these water events makes great sense but | had to look into the specifics of using the
Guard and | would get back to him. This is more for DEQ and the Guard to assist with at this time but please
keep us posted on what the EM may share as far as updates.
All: Attached please find an update of issues and actions regarding distressed local governments and school districts
through August 7, 2014. Let me know if you have any questions or need additional information.
Wayne Workman | Deputy State Treasurer
State of Michigan | 430 W. Allegan Street | Lansing, Mi 4ag22
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