Karegnondi Water Authority

Karegnondi Water Authority

Company type	Municipal corporation
Industry	Water supply
Founded	2010
Headquarters	United States
Area served	Mid-Michigan and the Thumb area of Michigan
Key people	Jeff Wright (CEO), Dayne Walling (former Chair), Gregory L. Alexander (Vice Chair)
Products	Water services

Karegnondi Water Authority (KWA) operates as a municipal corporation providing water services across Mid-Michigan and the Thumb area of Michigan. Its members encompass the cities of Flint and Lapeer, alongside the counties of Genesee, Lapeer, and Sanilac. The name "Karegnondi" originates from the Petan Indian language, meaning "lake," which was an early designation for Lake Huron.

Background

Flint inaugurated its first water treatment facility in 1917, followed by a second plant in 1952. At its industrial zenith, Flint’s treatment plants supplied up to 100 million gallons daily; however, by October 2015, this volume had diminished to 16 million gallons per day.

A Lake Huron pipeline was proposed by Flint in 1963 but was abandoned due to a profiteering scandal. As a result, Flint entered into a 30-year agreement in 1964 to buy water from the Detroit Water and Sewerage Department (Detroit Water). Flint then resold this water to the Genesee County Drain Commissioner, who distributed it to local municipalities. Officials in Genesee County opposed Detroit Water’s high pricing and frequent rate hikes, which were affected by surcharges related to elevation and distance.

Negotiations with Detroit Water were conducted exclusively through Flint rather than directly with Genesee County. Historically, Sanilac County depended on private wells without a centralized public water system. Meanwhile, Lapeer participates in the Greater Lapeer County Utilities Authority (GLCUA), which also procures water from Detroit Water.

Although customers like Flint City, Genesee County, and GLCUA consume only about 10% of Detroit Water’s supply, they are responsible for approximately 21% of its costs.

For many years, Genesee County officials have considered building a pipeline from Lake Huron originating at a 230-acre site located on the Sanilac-St. Clair County boundary. A feasibility study conducted in 2006 estimated the pipeline’s construction expenses at roughly $600 million but concluded that owning the infrastructure would be more economical over time compared to continuing to purchase water from Detroit.

In 2002, Genesee County purchased 326 acres including lakefront property from Detroit Edison for $2.7 million to facilitate the pipeline project.

Karegnondi Regional Water Planning Group

In May 2007, the Karegnondi Regional Water Planning Group was established by the Drain Commissioners of Genesee and Oakland Counties as a forerunner to the Authority.

By May 2009, environmental organizations had no objections to the Lake Huron pipeline proposal, provided that Genesee County submitted required permit applications. However, in June of that year, Cheboygan County Drain Commissioner Dennis G. Lennox threatened legal action aimed at revoking a permit for withdrawing water from Lake Huron due to concerns about its long-term sustainability.

In August 2009, the Michigan Department of Environmental Quality granted a permit under the 2008 Great Lakes Compact authorizing withdrawal of up to 85 million gallons per day for use by Genesee County, Flint, and prospective customers including Lapeer and Sanilac counties as well as the City of Lapeer.

Lennox filed an appeal against this permit issuance; nevertheless, by October Cheboygan County Commissioners chose not to back his challenge. On August 17, the Lapeer City Commission voted unanimously to join the Karegnondi Planning Group. Lapeer's anticipated contribution was approximately $100 million, which included funding for a water treatment plant.

Discussions regarding under which state statute to establish the authority took place through late 2009 and extended into November. By March 2010, former Genesee County Drain Commissioner Ken Hardin voiced opposition due to Flint’s financial difficulties and proposed collaboration with Detroit as an alternative regional solution. Meanwhile, bids were solicited for soil testing at the planned Lake Huron pumping station site.

On March 2, 2010, Lennox withdrew his appeal against the permit citing financial constraints. The Lapeer City Commission approved articles of incorporation in early April; shortly after, on April 13, the Genesee County Board also gave unanimous approval. The Lapeer County Board voted to join on April 24, followed by endorsements from both Lapeer City Commission and Flint City Council on April 26.

History

On October 26, 2010, the Karegnondi Water Authority (KWA) Board of Trustees held a meeting that included representatives from Flint (Mayor Dayne Walling), Lapeer (City Manager Dale Kerbyson), and the Drain Commissioners of Genesee (Jeff Wright), Lapeer (John Cosens), and Sanilac (Gregory L. Alexander). Walling was chosen as chair, with Wright appointed CEO and replaced on the Board by Genesee County Commissioner Chair Jamie Curtis. Alexander assumed the role of vice chair, Flint City Council President Delrico Loyd became treasurer, and Amy Planck was named secretary. Additionally, ten more Trustees were to be appointed based on anticipated water consumption.

In May 2011, DTE Energy showed interest in acquiring three million gallons daily of untreated Lake Huron water for its Greenwood facility. St. Clair County considered joining KWA, while Flint debated membership, with Mayor Walling advocating for it. By June, negotiations took place between the Detroit Water and Sewerage Department (DWSD) and KWA; the pipeline was projected to be operational by 2015.

On September 7, Rowe Engineering presented findings to Flint City Council indicating that maintaining service through Detroit Water was the costliest alternative; upgrading the Flint River plant ranked second in expense, whereas the KWA Lake Huron pipeline emerged as the most economical choice. Following Flint’s transition to Emergency Manager control in December, KWA sought a year-end decision regarding Flint's participation in the pipeline project.

In May 2012, Genesee County decided to sell 40 acres of Lake Huron land acquired in 2002, anticipating $350,000; this property was sold in January 2013 to the Genesee County Drain Commission for $346,000.

On January 11, 2013, KWA obtained final approval from the Army Corps of Engineers to proceed with construction of the pipeline intake. The following month, L. D'Agostini & Sons secured the contract for intake construction at $24.6 million, under the original $27 million estimate.

By April 12, officials from Oakland County voiced opposition to KWA due to concerns about increased costs for Detroit Water customers who remained with that system. L. D'Agostini & Sons also won a pump station contract valued at $11.05 million, achieving savings of $2.75 million compared to projected costs.

Flint City Council approved purchasing 16 million gallons per day from KWA on March 25, 2013, with a 7–1 vote. Emergency Manager Ed Kurtz and Mayor Walling ratified the decision on March 29 and submitted it to the State Treasurer.

DWSD issued a statement opposing Flint’s planned switch, warning of a potential "water war" and suggesting alternatives such as raw water sales. Genesee County Drain Commissioner Wright dismissed DWSD's stance as unprecedented and counterproductive.

On April 15, State Treasurer Andy Dillon granted permission for Kurtz to enter into a water purchase agreement with KWA. The agreement was signed by Emergency Manager Kurtz on April 16. The following day, after county and city officials rejected DWSD’s final offer, DWSD served Flint with a one-year termination notice for their contract. DWSD pursued payment for “stranded costs” related to previous system investments; however, Flint and Genesee declined while remaining open to discussions about acquiring the pipeline. Governor Rick Snyder convened all involved parties for a meeting on April 19.

Construction

The pipeline project’s groundbreaking ceremony took place on June 28, 2013, at the authority’s property located near Lake Huron.

By September 2013, the authority was in the final stages of negotiation with American Cast Iron Pipe Company to procure 67 miles of spiral weld and iron pipe along with fittings, bends, reducers, and hydrant tees for $84.1 million—significantly lower than the anticipated $104 million. Other contenders included Northwest Pipe with a bid of $81.2 million and Hansen Pipe at $101.8 million.

A planned $53 million bond issuance by Genesee County, originally set for August 1, was delayed due to Detroit’s bankruptcy proceedings. Subsequently, the county successfully issued $35 million in bonds in September.

On October 16, 2013, the board expanded with the addition of ten trustees, among them former state House Minority Leader Richard Hammel and prominent business figures such as Steve Landaal, president of Landaal Packaging.

In November 2013, American Cast Iron Pipe Company became the first firm to establish operations at Flint’s former Buick City location by acquiring land from the RACER Trust. The following month, a micro-tunnel boring machine manufactured in Germany commenced horizontal drilling approximately 60 feet beneath Lake Huron, with an anticipated completion timeline of 30 months.

By March 2014, the KWA issued bonds totaling $220 million that received favorable credit ratings, resulting in interest rates near or below 5%. On April 25, Flint temporarily reverted to using Flint River water as its main drinking supply while Genesee County continued purchasing water from Detroit.

In April discussions with the U.S. Environmental Protection Agency focused on environmental concerns regarding the endangered Northern riffleshell mussel inhabiting Sanilac County’s Black River. This led to considerations for a more expensive boring technique beneath the river instead of traditional open-cut methods.

E&L Construction Group secured the contract for the Imlay City intermediate pump station in May 2014 at $11.78 million—$6.82 million less than projected. The following month, Zito Construction Company from Grand Blanc was awarded a contract to install iron transmission mains along the pipeline route.

Flint emergency manager Darnell Earley completed the sale of a nine-mile section of pipeline in Eastern Genesee County to Genesee County for $3.9 million; this segment currently delivers Detroit water and will provide supply to eastern county areas once the Huron pipeline becomes operational.

During this period, Flint experienced worsening water system challenges culminating in a crisis marked by boil water advisories and lead contamination issues. The city reconnected to the Great Lakes Water Authority system on October 8, 2015.

At the KWA board meeting held on November 25, 2015, new members included Flint Mayor Karen Weaver, Flint City Councilman Eric Mays, and Laura Sullivan. Despite Mayor Weaver’s bid for chairmanship following Mayor Walling’s defeat, Sanilac Drain Commissioner Alexander was elected chair while Genesee County Commission Chair Curtis assumed vice chair responsibilities.

Operational

Connections to the new KWA water source commenced in 2017. Beginning in July, water was conveyed through the KWA pipeline from Lake Huron to the Genesee County treatment facility, which had been conducting treated water testing since August of that year. On November 21, 2017, Flint City Council narrowly approved a 30-year agreement with the Great Lakes Water Authority (GLWA) by a vote of 5-4. By November 27, northern loop communities—including Clio, Flushing, Montrose, Mt. Morris, as well as townships such as Davison and Vienna—started receiving treated water supplied via KWA and managed by Genesee County Drain Commission Water and Waste Division.

The southern cluster—comprising Burton, Swartz Creek, along with Clayton, Flint, and Grand Blanc townships—began receiving water from both KWA and Genesee Water on December 15, 2017.

See also

• Beecher Metropolitan Water and Sewer District
• Great Lakes Water Authority

External links

• , Genesee County Drain Commissioner, Division of Water & Waste Services