Drain Commissioner Jeff Wright led a team, which included the City of Flint, City of Lapeer, Sanilac County, Lapeer County, and Genesee County to examine our communities' water supply needs and to identify the long-term water supply options that are available. The study evaluated the regions long-term water supply options, below you will find the executive summary.

1. Introduction

The City of Flint (Flint), the Genesee County Drain Commissioner – Division of Water and Waste Services (GCDC-WWS), and the Greater Lapeer County Utilities Authority (GLCUA) are supplied water from the City of Detroit’s Department of Water and Sewerage (DWSD). Because of growing concerns regarding the reliability and cost of the DWSD supply, these utilities have considered other alternatives for water supply. The first formal study was completed in 1992; the most recent was completed in 2006.

This study considers two alternatives from the 2006 study. One alternative is the continued purchase of water from DWSD; the other alternative is the development of a new water supply from Lake Huron.

Both alternatives include the construction of a new pipeline. DWSD is planning the construction of a new pipeline to Flint to address concerns regarding reliability and capacity. Future water rates for either alternative will be increased similarly to recover the capital investment in new facilities.

The second alternative, development of a new water supply from Lake Huron, provides the opportunity to supply water to additional communities. Sanilac County has joined Flint, GCDC-WWS, and GLCUA as participants in this study of water supply alternatives.

A new governmental authority, the Karegnondi Water Authority (KWA), is planned to develop and operate the water supply. The KWA will be comprised of the communities supplied water.

2. Study Area
Figure 1 shows the study area.

3. Demands
The current maximum day demand of the communities within the study area is 54 mgd. Representatives of the communities within the study area have provided guidance regarding future demands. Alternatives studied are based on a projected future (25 year) maximum day demand of 76 mgd.

4. Alternative 1- Continued Supply by DWSD
Several options for continued DWSD supply to Flint, GCDC-WWS, and GLCUA have been discussed with DWSD representatives; however, there have been no formal negotiations or agreement regarding any particular option. Based upon these discussions, four options have been evaluated. Although all have similar results, analysis indicates that the Flint Transmission System option is the preferred option for Alternate No. 1 and it is this option that will be used for comparison to Alternate No. 2.

With this option, a 30-year contract with DWSD for water service is required. Flint, GCDC-WWS, and GLCUA will be responsible to construct and operate a portion of the Flint Transmission System (FTS), which DWSD is planning to construct in 2010. By constructing and operating a portion of the FTS; water can be purchased by Flint, GCDC-WWS, and GLCUA at a lower rate.

DWSD cost estimates the portion of the FTS to be constructed by Flint, GCDC-WWS, and GLCUA will be $348,000,000. Initially, operating costs are projected to be $724,000 per year. In exchange for the responsibility of constructing and operating the system, Flint, GCDC-WWS, and GLCUA will benefit through a 40% reduction in the purchase price of water from DWSD. Although the cost for purchasing water from DWSD will be reduced by 40%, the additional operating cost and debt recovery expense will increase the cost of water. The typical homeowner's monthly cost will increase by $7.00 to cover operating costs and debt retirement.

5. Alternative 2 – New Lake Huron Water Supply
The 2006 study evaluated several options for a new water supply. This study focuses on the alternative of delivering raw water from Lake Huron to participating communities for local treatment and distribution.

In 2002, GCDC-WWS purchased 230 acres of land adjacent to Lake Huron in southern Sanilac County. An intake will be constructed several miles out into Lake Huron and a pumping station will be built on this site. Raw water will be pumped through a pipeline to an inland reservoir.

Inland from the reservoir, pipelines will supply water for treatment facilities in Flint, GCDC-WWS, and GLCUA. Treatment facilities for Sanilac County can be located along the pipeline route.

Treatment by microfiltration has been planned for Sanilac County and GLCUA. A new conventional treatment plant is planned for GCDC-WWS. It is planned that raw Lake Huron water will be delivered to Flint's existing treatment plant.

The water system provides for twin pipelines, storage, backup equipment, and redundant processes to provide a reliable supply. Facilities have been planned with capacity for the 25-year demands shown in Table 1, and provisions for further expansion.

Figure 2 is a schematic illustrating the proposed water supply system.

6. Comparison of Alternatives
With the investments in facilities planned by DWSD, either of the alternatives considered are believed to provide a reliable, long-term water supply with sufficient capacity for the needs of the study area. Regardless of the alternative selected, a new pipeline and other facilities must be constructed. As a result, the cost of water will increase regardless of which alternative is selected.

Figure 3 shows the projected cost of water for each alternative. For demonstration purposes, the cost of water for the New Lake Huron Water Supply alternative does not include the cost of repayment of debt incurred for its construction. The graph shows that without the debt of constructing the new system (or once the debt for its construction is repaid), the cost of water from the new supply will be substantially less than continuing to purchase water from DWSD.

Analysis has shown that the difference in the cost of water between the alternative of continuing supply from DWSD and of constructing a new Lake Huron supply can provide for the capital investment to construct the new supply. If Alternative 2 (New Lake Huron Supply) is constructed and water rates are increased to the levels projected for Alternative 1 (future DWSD rates), then the difference can be used to payoff the bonds that were taken out to finance the construction of the new water supply. Following repayment of the bonds, the cost of water will be reduced to a fraction of what is expected if supply is continued from DWSD.

7. Implementation
Prior to a decision by the study participants on whether to continue to purchase water from the current supplier or to pursue development of a new supply, the KWA should be incorporated. Details regarding the structure and operating procedures of the authority should be developed and understood prior to a decision regarding an alternative. This will require that participants authorize that the articles of incorporation are developed. Following their completion, the KWA can be established through a vote of the participants as a decision is made regarding which alternative should be pursued.