Correspondence between

ATTOOOO1.htm; GM Tech Center Build 7000 water main break health concern; ATTO0002.htm f Fyi... Prn alrnost certain the Tech center is customer site piping. [will look into it and find out what really happened, it is custorner site piping, the responsihilities lie with the owner of the property.

With help from Amy, Jon, Steve and Jean — a draft is attached. Please let me know if you have comments. I’d like to send this out tomorrow. xxxEND_PAGE:deq21_b177_0616_0616_1

Date: Thursday, February 05, 2015 3:51:52 PM It looks OK to me. A few communities (Mt. Clemens, South Lyon) come to mind that had high individual TTHM results, but the averages never exceeded the MCL and they continue to remain below the MCL (as a result of operational changes).

FYI Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-284-6543

You've probably already received these materials, but just in case... -o--- Original Message-----

Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-284-6543

Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-284-6543

Reep in mind from my previous discussions with Preasury and the Director, DIWSD chimped Flint and the GCDC tozether {8% total lass}. Since GCDC was going KWA regardless of Flint, when we talked with Treasury about Hint ouiling out it would have really been only 3-4% revenue loss for PAWSD directly related to Flint, since GCDC was a last cause. GCDC pop. = 153,000 Flint pon. = 102,434 (2046 Census} Total population = 255,434

Kris — | think that the budget information for DWSE) is perfect. And we car use the press release as a basis for the 636 number, | think it might be useful to compare the number of people served by Flint to the nurnber of pecole served by the entire DWSD systern in order to check whether the 696 number is scaled appropriately based on population. Do you know how many peopie are served by Hint and the ruunber for all of DWSE? Vye ce'd Steve Busch in case he has ready access to the Flint numbers.

Did you want me to look into the follow-up items from the call? If | heard right, the items were: - operation costs - financial impact from the loss of Flint? | found a summary of the FY2014/2015 Financial Plan (attached) that might be helpful. The impact due to the loss of Flint is a little harder to quantify. | have heard that the loss of Flint as a customer will result in a $22 Million revenue loss (or 6 percent of total DWSD water revenue). That statement is noted in the attached press release. Let me know if you need anything else. xxxEND_PAGE:deq21_b269_0847_0847_1

Date: Monday, August 05, 2013 3:58:36 PM All — | recently spoke with Randall Byrne (Treasury) and agreed to try to help them with a couple of items. (Randy — sorry it’s taken me so long to get this note out). 1. Flint is considering selling the 72-inch pipeline. It was constructed in 1965 for $6.5M. How would you determine fair market price for such an item? | suggested getting quotes from a couple of contractors for what it would cost to install today and figure some kind of depreciation for a 50 year old pipeline. Other ideas? 2. Treasury is looking for contractors that could possibly operate a distribution system. Could you please provide a list of names/companies that are already doing this kind of work around the state? United Water and Earth Tech were the ones that came to mind. There must be others. Thanks much. Liane Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-373-9523 ** Effective August 12, 2013 my new number will be (517) 284-6543 xxxEND_PAGE:deq01_b026_1836_1836_1

Date: Monday, August 05, 2013 3:58:00 PM All — | recently spoke with Randall Byrne (Treasury) and agreed to try to help them with a couple of items. (Randy — sorry it’s taken me so long to get this note out). 1. Flint is considering selling the 72-inch pipeline. It was constructed in 1965 for $6.5M. How would you determine fair market price for such an item? | suggested getting quotes from a couple of contractors for what it would cost to install today and figure some kind of depreciation for a 50 year old pipeline. Other ideas? 2. Treasury is looking for contractors that could possibly operate a distribution system. Could you please provide a list of names/companies that are already doing this kind of work around the state? United Water and Earth Tech were the ones that came to mind. There must be others. Thanks much. Liane Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-373-9523 ** Effective August 12, 2013 my new number will be (517) 284-6543 xxxEND_PAGE:deq03_b017_0020_0020_1

Date: Monday, August 05, 2013 3:43:15 PM All — | recently spoke with Randall Byrne (Treasury) and agreed to try to help them with a couple of items. (Randy — sorry it’s taken me so long to get this note out). 1. Flint is considering selling the 72-inch pipeline. It was constructed in 1965 for $6.5M. How would you determine fair market price for such an item? | suggested getting quotes from a couple of contractors for what it would cost to install today and figure some kind of depreciation for a 50 year old pipeline. Other ideas? 2. Highland Park is looking at contracting out their water department for the near future. At this point, they would need a company that could manage their distribution system. Could you please provide a list of names/companies that are already doing this kind of work around the state? United Water and Earth Tech were the ones that came to mind. There must be others. Thanks much. Liane Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-373-9523 ** Effective August 12, 2013 my new number will be (517) 284-6543 xxxEND_PAGE:deq01_b025_1835_1835_1

Date: Monday, August 05, 2013 3:43:00 PM All — | recently spoke with Randall Byrne (Treasury) and agreed to try to help them with a couple of items. (Randy — sorry it’s taken me so long to get this note out). 1. Flint is considering selling the 72-inch pipeline. It was constructed in 1965 for $6.5M. How would you determine fair market price for such an item? | suggested getting quotes from a couple of contractors for what it would cost to install today and figure some kind of depreciation for a 50 year old pipeline. Other ideas? 2. Highland Park is looking at contracting out their water department for the near future. At this point, they would need a company that could manage their distribution system. Could you please provide a list of names/companies that are already doing this kind of work around the state? United Water and Earth Tech were the ones that came to mind. There must be others. Thanks much. Liane Liane J. Shekter Smith, P.E., Chief Office of Drinking Water and Municipal Assistance Michigan Department of Environmental Quality 517-373-9523 ** Effective August 12, 2013 my new number will be (517) 284-6543 xxxEND_PAGE:deq03_b016_0019_0019_1

The latest news release on the Flint/Genesee Detroit water negotiations. At this point | have not seen nor been asked to comment on this latest offer. The reporter noted in the comments that they are seeking a response from the Governor’s office. Given discussions that took place last week, | was anticipating a press conference would be held late today. Stephen Busch, P.E. Lansing and Jackson District Supervisor Office of Drinking Water and Municipal Assistance MDEQ 517-643-2314 xxxEND_PAGE:deq12_b060_0159_0159_1

Date: Friday, April 26, 2013 12:15:46 PM The latest news release on the Flint/Genesee Detroit water negotiations. At this point | have not seen nor been asked to comment on this latest offer. The reporter noted in the comments that they are seeking a response from the Governor’s office. Given discussions that took place last week, | was anticipating a press conference would be held late today. Stephen Busch, P.E. Lansing and Jackson District Supervisor Office of Drinking Water and Municipal Assistance MDEQ 517-643-2314 xxxEND_PAGE:deq01_b090_3635_3635_1

Liane J. Shekter Smith, P.£., Chief Office of Drinking Water and Municipal Assistance Michigan Departrnent of Environmental Quality §17-373-9523

Date: Monday, March 25, 2013 3:12:23 PM Here are my comments on the attached documents: Currently Flint receives water from DWSD and uses their water treatment plant as a back- up. Flint is currently in compliance with the SDWA as they stand with regard to reliability/redundancy. There is no regulatory reason for leaving the DWSD system. The issue of KWA vs. DWSD is mainly a question of cost. The February 2013 TYJT report indicates that there are economically viable options that would allow Flint to continue to receive water from DWSD. There is conflicting information on costs depending on the source, and | really don’t know which cost estimates are most correct. If there is a cost effective option for Flint to stay on the DWSD system, it should be pursued. O If Flint leaves the DWSD system, there will be ~30 miles of unused water infrastructure. The cost of maintaining excess water infrastructure and capacity in the DWSD system will be the burden of the customers that remain on the DWSD system. O The DWSD system has already undergone a significant reduction in water demand that continues to hurt their bottom line. The loss of an additional customer will only exacerbate the problem. Small water systems that receive water from the DWSD on the Imlay to Flint transmission line will likely be left to build their own water system (Imlay, Mayfield, Greater Lapeer Utilities Authority). With regard to Flint’s representation/decision making authority: For the last 10 years, DWSD has implemented a customer outreach program open to all customers known as the Technical Advisory Committee (TAC). TAC has developed Partnering agreements to work together on decisions regarding the DWSD system. The TAC has worked with DWSD to develop the latest rate structure, capital improvements program, etc. Historically, Flint has chosen not to participate on the TAC, but could do so going forward to make sure they have a say in the decisions relating to the DWSD system. DWSD is currently working on converting to a water authority. This new structure could allow for a seat on the Board of Water Commissioners.

Here are my comments on the attached documents: - Currently Flint receives water from DWSO and uses their water treatment plant as a back-up. Flint is currently in compliance with the SDWA as they stand with regard to reliability/redundancy. There is no regulatory reason for leaving the DWS5D system. The issue of KWA vs. DWS5D is mainly a question of cost. - The February 2013 TYJT report indicates that there are economically viable options that would allow Flint to continue to receive water fram DWSD. There is conflicting information on costs depending an the source, and | really don’t knaw which cost estimates are most correct. If there is a cost effective option for Flint to stay on the DWS5D system, it should be pursued. © if Flint leaves the DWSD system, there will be ~30 miles of unused water infrastructure. The cost of maintaining excess water infrastructure and capacity in the DWSD system will be the burden of the customers that remain on the DWSD system. O The DWSD system has already undergone a significant reduction in water demand that continues to hurt their bottom fine. The loss of an additional customer will only exacerbate the prablern. - Small water systems that receive water from the DWSD on the Imlay to Flint transmission line will likely be left to build their awn water system (imlay, Mayfield, Greater Lapeer Utilities Authority). With regard to Flint’s representation/decision making authority: - For the last 10 years, DW5D has implemented a customer outreach program apen to all customers known as the Technical Advisory Committee (TAC). TAC has developed Partnering agreements to wark together on decisions regarding the DWSD system. The TAC has worked with DWSD to develop the latest rate structure, capital improvements program, ete. Historically, Flint has chosen not to participate on the TAC, but could do so going forward to make sure they have a say in the decisions relating to the DWSD system. - DWSD is currently working on converting to a water authority. This new structure could allow for a seat on the Board of Water Commissioners.

Date: Monday, March 25, 2013 7:02:26 AM Ihave reviewed the documents and have prepared comments of which I will discuss with Steve today to include as part of our overall comments. Michael Prysby, P.E. District Engineer Office of Drinking Water and Municipal Assistance 517 335-6122

| have reviewed the documents and have prepared comments of which | will discuss with Steve today to include as part of our overall comments. Michael Prysby, P.E. District Engineer Office of Drinking Water and Municipal Assistance 517 335-6122

Date: Sunday, March 24, 2013 8:01:28 PM I will review the docs and try to have my comments in by Tuesday afternoon as well. Thanks, Kris

| will review the docs and try to have my comments in by Tuesday afternoon as well. Thanks, Kris

Upon further discussions with Richard, | wil take the goint position to coordinate this effort. For the most part my schedufe is open next week so loan accornmodate the executive office's needs. { fully anticipate meeting the Wednesday Morning deadline, if not Tuesday afternoon. Stephen Busch, FE. Lansing and Jackson District Superisor Office of Drinking Walter and Municipal Assistance MOEG 5L7-G43-23414