All:
I spoke with Mr. Craig at the DEQ and he was working on the current version of the Consent Order when I
called.
Mr. Craig indicated that the order is intended to temporarily reopen the lime disposal area so the WTP
upgrades can go forward. In the future the area would be evaluated for clean-up or capping (or other measures
after an environmental assessment occurs).
Mr. Craig stated that he hopes to send his comments back to the City’s attorney at Werner, Norcross & Judd
either tomorrow or Monday.
I requested periodic updates on the status of this project but if anyone wishes any follow-up, please let me
know.
Eric Cline | Unit Operations Specialist - Office of Fiscal Responsibility
State of Michigan | Michigan Department of Treasury
430 W. Allegan Street, 3rd Floor | Lansing, MI 48922
(517) 335-2078 | clinerl @michigan.gov
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 is 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.
xxxEND_PAGE:treasury01_b19_2589_2633_07
CITY OF FLINT
OFFICE OF THE EMERGENCY MANAGER
Darnell Earley, 1CMA-CM, MPA
Emergency Manager
ELECTRONIC COMMUNICATION
March 7, 2014
Ms. Sue McCormick
Detroit Water and Sewer Department
Detroit, Michigan
RE: DWSD Water Rates
Dear Ms. McCormick:
Thank you for the correspondence dated February 12, 2014 which provides Flint with the
option of continuing to purchase water from DWSD following the termination of the
current contract as of April 17, 2014.
Following DWSD’s April 17, 2013 notice of termination of the water service contract
between the City of Flint and DWSD, the City of Flint has actively pursued using the
Flint River as a temporary water source while the KWA pipeline is being constructed.
We expect that the Flint Water Treatment Plant will be fully operational and capable of
treating Flint River water prior to the date of termination. In that case, there will be no
need for Flint to continue purchasing water to serve its residents and businesses after
April 17, 2014.
We are aware that Genesee County has been in negotiations with DWSD to purchase
water from DWSD following the termination of our contract, and we understand that an
agreement may be imminent. Should that occur, there would be no further need for the
City to discuss with DWSD any continuing purchase of water. Should that not occur,
however, we would be interested, if Genesee County were to so request, to purchase
water from DWDS for some period of time. In such an event, our demand for water
would be only for the amount necessary to provide Genesee County with water. That
amount would be approximately half of the amount Flint is currently purchasing from
DWSD.
City of Flint ¢ 1101 S. Saginaw Street + Flint, Michigan 48502
www.cityofilint.com ¢ (810) 766-7346 « Fax: (810) 766-7218
xxxEND_PAGE:treasury01_b19_2589_2633_08
Ms. Sue McCormick
March 7, 2014
Page 2
However, in the very unlikely event that the City of Flint is not able to draw water from
the Flint River no later than April 17, 2014, then the City would like the option of
continuing to purchase water from DWSD for a period of time, up to the time water is
available from KWA.
Consequently, I am requesting that you clarify your proposal for the City of Flint to
continue purchasing water from DWSD under the following scenarios:
e Flint, upon the request of Genesee County, purchases water for sale to Genesee
County for up to 3 years, beginning April 17, 2014, in an amount approximately
50% of the volume currently purchased by the City;
« Flint purchases water from DWSD in approximately the same volume as
currently, for up to 3 years, beginning April 17,2014, with the ability to reduce
that volume by up to 50% during that period, upon 30 days notice to DWSD
e Flint purchases water from DWSD in approximately the same volume as
curtently, for up to 3 years, beginning April 17, 2014, with the ability to reduce
that volume by up to 50% during that period, upon 30 days notice to DWSD, and
further, to terminate the reduced volume purchase should Genesee County and
DWSD reach an agreement whereby Genesee County directly purchases water
m DWSD.
Thank you and please contact me if you have any questions. I look forward to your
response.
Sincerely,
Darnell Earley, ICMA-CM, MPA. f
Emergency Manager
City of Flint
xxxEND_PAGE:treasury01_b19_2589_2633_09
Koryzno, Edward (T reasury)