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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

) ) Plaintiff, ) ) v. ) ) City of Detroit, et al. ) ) Defendants. ) ____________________________________)

United States of America,

Honorable Sean F. Cox Case No. 77-71100

NOTICE OF JOINT STATEMENT OF THE UNITED STATES AND MICHIGAN FOLLOWING OCTOBER 12, 2012 NOTICE The United States of America, on behalf of the United States Environmental Protection Agency (“EPA”), and the State of Michigan, on behalf of the Michigan Department of Environmental Quality (“MDEQ”), hereby file this Joint Statement as a follow-up to the United States’ October 12, 2012 Notice. EPA and MDEQ have taken the opportunity to review presentations made by management consulting firm EMA to the Detroit Sewerage and Water Department (“DWSD”). These presentations were dated August 2012 and September 6, 2012 (“EMA’s Presentations” or “EMA’s Proposal”). In general, EMA made recommendations concerning a potential reorganization of DWSD and the deployment, use, and optimization of automation, technology, and systems control for the purpose of achieving greater efficiency and cost savings. EMA is not an environmental consultant and its Presentations do not deal directly with EPA’s and MDEQ’s areas of jurisdiction and expertise. Nevertheless, because EMA’s Proposal was raised in DWSD’s

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Motion for an Interim Order, EPA and MDEQ reviewed EMA’s Proposal to assess whether any aspects of it appear likely to affect DWSD’s compliance with its NPDES permit and the Clean Water Act (“CWA”), 33 U.S.C. §§ 1251 et seq. Since this Court’s October 12, 2012 status conference, representatives from DWSD and EMA presented and explained EMA’s Proposal to EPA and MDEQ. EPA and MDEQ also reviewed available public documentation concerning the Proposal. In addition, from November 6, 2012, through November 9, 2012, EPA, with the participation and assistance of MDEQ, conducted a Compliance Evaluation Inspection at the DWSD wastewater treatment plant. At this time, EPA and MDEQ take no position on the appropriateness of EMA’s Proposal. However, EPA and MDEQ have identified one aspect of the Proposal that, if implemented as written, could have a negative impact on CWA compliance: the significant projected reductions in staffing levels within DWSD’s wastewater operations group (“WWOG”). 1 DWSD informs EPA and MDEQ that the WWOG currently has over 600 employees. By contrast, after implementation of all recommended actions, EMA’s Proposal projects fewer than 150 WWOG employees. 2 In discussions with EPA and MDEQ, DWSD managers indicated that EMA’s projected staffing levels have not been adopted by DWSD and are only projections, not a plan. DWSD

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EPA and MDEQ do not, at this time, take a position or comment upon other recommendations in EMA’s Proposal, including, for example, job classification redesign, computerized maintenance management systems improvements, automation and IT support system changes, and control system upgrades.

August 2012 EMA PowerPoint Presentation at 16. The August 2012 Presentation lists 68 employees under the wastewater manager and 76 employees under the field/central services manager. Some of those 76 field/central services employees will perform duties currently undertaken by WWOG employees.

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represented that it intends to move forward with EMA’s proposed staffing actions (i.e., job classification redesign, team training, etc.) in a step-by-step, piloted manner, with time to evaluate and adjust as necessary. DWSD further represented that no recommended actions would be implemented that threatened safety or compliance. Safeguards already in place should help to minimize the risk that reductions in WWOG staffing levels might undermine DWSD’s ability to comply with its NPDES permit and the CWA: 1. DWSD entered into an Administrative Consent Order (“ACO”) and a First Amended ACO with MDEQ on July 8, 2011, and May 18, 2012, respectively. The ACO and First Amended ACO are Attachments 1 and 2 to this Notice. Under the ACO, DWSD was required to develop and submit a Staffing Plan that identified “the minimum number of maintenance and operations staff necessary to properly operate and maintain the Detroit WWTP and CSO facilities and a strategy for successful succession planning and training to ensure competent staff.” Att. 1 (ACO) ¶ 3.6. DWSD submitted that plan at the end of July 2011 and MDEQ subsequently approved it. The approved Staffing Plan is Attachment 3 to this Notice. 3 Under the approved Staffing Plan, the WWOG’s minimum staffing level for FY 2011/2012 is 645. Att. 3 (Staffing Plan) at 3. As of October 1, 2012, DWSD was required to staff the WWOG at 90% of the minimum staffing level. Att. 1 (ACO) ¶ 3.6.c. The Staffing Plan is an enforceable plan under the ACO. Id. ¶¶ 3.6.a, 4.5. Under the ACO, the WWOG’s minimum staffing level can be revised only by mutual agreement between MDEQ and DWSD in writing and incorporated by reference into the ACO. Id. ¶ 3.6.f.

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While the Staffing Plan is dated April 1, 2011, DWSD did not submit it to MDEQ until the end of July 2011 and MDEQ approved it on January 24, 2012. EPA and MDEQ recognize that the approved Staffing Plan is based, inter alia, on DWSD’s 2011 organizational structure and the automation, technology, and control systems then in place. Changes in these and other areas may well impact appropriate future minimum staffing levels. DWSD must secure the approval of MDEQ for any changes in minimum staffing levels.

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At this time, EPA and MDEQ have not identified a basis for seeking relief concerning DWSD’s consideration of EMA’s Proposal. EPA and MDEQ will continue to monitor WWOG staffing levels through the ACO already in place. 4 Because the extent to which specific elements of the Proposal will be implemented remains to be determined and because EMA’s recommendations and DWSD’s actions in the future may change, EPA and MDEQ reserve their right to review future developments to ensure continuing CWA compliance. By conducting this review and continuing to monitor the situation, EPA and MDEQ do not intend to impair DWSD’s efforts to undertake appropriate reorganization, automation, and/or technology and control systems upgrades that DWSD may deem necessary to improve

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The United States and Michigan are aware that, on November 20, 2012, the Detroit City Council rejected a part of the EMA Proposal that called for a $48 million contract between EMA and DWSD. We also are aware that DWSD recently proceeded with a smaller EMA contract involving job classification redesign, training, and implementation. There have been suggestions that EPA and/or MDEQ should take a position on the $48 million EMA contract (for example, by approving or disapproving it). While the United States and Michigan reserve the right to take all actions necessary to ensure compliance with the Clean Water Act and any other applicable federal or state laws, we are not aware, at this time, of any reason why the United States and Michigan would assert authority to approve or disapprove any contract between DWSD and EMA.

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efficiency, control costs, and address DWSD’s need for long-term strategic and financial planning.

Respectfully Submitted, FOR THE UNITED STATES OF AMERICA IGNACIA S. MORENO Assistant Attorney General Environment and Natural Resources Division FOR THE STATE OF MICHIGAN PAMELA J. STEVENSON Assistant Attorney General Environment, Natural Resources and Agriculture Division

s/ Annette M. Lang ANNETTE M. LANG Trial Attorney Environmental Enforcement Section Environment and Natural Resources Division P.O. Box 7611 Washington, D.C. 20044-7611 (202) 514-4213 (202) 616-6584 (fax) annette.lang@usdoj.gov

s/ with consent of Pamela J. Stevenson PAMELA J. STEVENSON Assistant Attorney General Environment, Natural Resources and Agriculture Division 6th Floor Williams Building 525 West Ottawa St. P.O. Box 30755 Lansing, Michigan 48909 (517) 373-7540

BARBARA L. MCQUADE United States Attorney Eastern District of Michigan By: s/ with consent of Peter A. Caplan PETER A. CAPLAN Assistant United States Attorney Eastern District of Michigan 211 W. Fort St., Suite 2001 Detroit, MI 48226 (313) 226-9784 P-30643 peter.caplan@usdoj.gov

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OF COUNSEL: Nicole Cantello Attorney-Advisor U.S. Environmental Protection Agency Region 5 (C-14J) 77 W. Jackson Blvd. Chicago, IL 60604

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CERTIFICATE OF SERVICE I hereby certify that on December 3, 2012, I electronically filed the foregoing paper with the Clerk of the Court using the ECF system which will send notification of such filing to counsel of record and that I caused copies of same to be mailed via U.S. mail as follows: Joseph W. Colaianne Oakland County Corporation Counsel 1200 N. Telegraph Rd. Suite 419 Bldg. 14E Pontiac, MI 48341-0419 Robert J. Hribar 16931 19 Mile Rd. Mount Clemens, MI 48044 John H. Fildew Fildew Hinks 26622 Woodward Ave. Suite 225 Royal Oak, MI 48067 Charles E. Lowe Lowe, Lewandowski 905 W. Ann Arbor Trail Plymouth, MI 48170

s/ Annette M. Lang Annette M. Lang

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ATTACHMENT 1

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ATTACHMENT 2

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ATTACHMENT 3

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