At some point we should state that MI Dept of EGLE is our regulatory unit of government and should our AMP draw in more capital than it should, we will have to reduce rates.
City of Jackson staff took immediate action following the notification of the LCR. It has been about a year and a half City Staff have delegated time to specifically work on funding this mandate. The above is an accurate time line of the discussion City of Jackson had about Lead Copper Rule, with business owners and community members.
Flint MI received $350M from State and $100M from Federal Govt for LSLR and other Health related costs. Lansing BWL (more information) performed the work before the Mandate was adopted Saginaw MI received $1M Grant for pilot LSLR – will have a lead rate increase beginning this year and continuing
Asst to City Manager reached out to each of these communities to better understand their funding resources. DWRF Drinking Water Revolving Fund is a revolving loan fund designed to assist water suppliers in satisfying the requirements of Safe Drinking Water Act Detroit- receives lease payment from GLWA in $50 Million annually. Detroit is also looking to bond 16.5 Million from DWRF. Total $500 Million SEMCOG membership of over 112 communities in Southeast MI project MI EGLE’s estimates are very low as they don’t include additional fees for (legal, staffing, permitting, equipment etc)
This chart shows what communities will pay based on a 10% increase for engineering, and associated fees.
1. Lansing BWL and the City of Lansing are separate entities. Like how Consumers Energy is a utility provider in the City of Jackson, Lansing BWL is a utility provider in the City of Lansing. LCR Mandate and legal decision from MI court of appeals states the Water Supply system must pay for the cost of LSL Replacement. The cost to Lansing BWL was their cost to replace from 2004-2016. Owning the service line from the main to the meter significantly decreases logistical and legal costs associated with performing the work on private property. Coordinating with City of Lansing infrastructure projects allowed Lansing BWL to fully replace LSL at a reduce price as cost of construction was reduced. Restoration of the property was at the expense of the municipality not Lansing BWL. After the LCR adoption prices for line replacement will increase as demand will be high for inspectors, licensed contractors, etc all around the State.
PA 113 of 1869 imposes limitations on Municipalities in the creation of water assistance programs.
LEAD SERVICE LINE
City of Jackson’s LSL Replacement
Prepared for: February 11, 2020 City Council Meeting
Prepared by Office of City Manager
Department of Public Works
“The purpose of the Lead and Copper Rule (LCR) is to protect public
health by minimizing lead and copper levels in drinking water. Lead and
copper enter drinking water mainly from corrosion of lead and copper
containing plumbing materials. The rule establishes action levels (AL) for
lead and copper based on a 90th percentile level of tap water samples. An
action level exceedance is not a violation but triggers other requirements
to minimize exposure to lead and copper in drinking water, including water
quality parameter monitoring, corrosion control treatment, source water
monitoring/treatment, public education, and lead service line
replacement. All community water supplies and no transient
noncommunity water supplies are subject to the LCR requirements.”
LEAD COPPER RULING
2018 LEAD COPPER RULE ADOPTED BY STATE OF
MICHIGAN DEPARTMENT OF ENVIRONMENTAL GREAT LAKES AND ENERGY -
(FORMALLY MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY)
CHANGES TO MICHIGAN
SAFE DRINKING WATER ACT
• Removal of all Lead
service lines in Michigan
beginning January 1, 2021
• Communities locate and
prioritize lead service line
• Action level for lead in
drinking water lowered
from 15 parts per billion
(ppb) to 12 (ppb) on
Jan . 1, 2025
• Banned partial
replacement of service
• Complete service line
inventory submitted to
EGLE by Jan. 1 2025
CITY OF JACKSON LEAD COPPER
"EGLE appreciates the City of Jackson's proactive
LSLR planning efforts and looks forward to further
discussions regarding implementation of these
requirements. I am providing a quick summary of
regulatory requirements relating to the
identification and removal of lead service lines
Director Drinking Water Environmental Health Division
Michigan Dept. of Environment Great Lakes & Energy
2. During 2020, water supplies may conduct planning activities in
preparation for ongoing LSLR replacement activities. Service line
replacement requirements begin the year after completion of the
PDSMI. The PDSMI deadline was January 1, 2020, therefore service line
replacement requirements begin in 2021. Water suppliers may choose
to begin service line replacement efforts in 2020, but LSLR is not
mandatory until 2021.
3. Beginning calendar year 2021, water suppliers must replace an average of 5%
of their LSLs per year, not to exceed 20 years, unless an alternate schedule in an
asset management plan is approved by the department. EGLE is currently
developing guidance and criteria by which water suppliers may apply for an
alternate replacement schedule. EGLE is reviewing recently received PDSMI
data and other information to help inform this guidance.
4. By January 1, 2025, water suppliers must submit a complete distribution
system materials inventory (CDSMI) consisting of a robust, service line-
specific inventory of materials throughout the distribution system. During or
upon completion of the CDSMI, water suppliers may learn additional
information that requires adjustments to their LSLR program that began in
5. Water suppliers are required to report to EGLE annually on the status of
their LSLR activities.
1.By January 1, 2020, water suppliers were required to submit a
preliminary distribution system materials inventory (PDSMI) to EGLE.
This required suppliers to review existing service line records and
provide an informed estimate of service line materials throughout the
distribution system, with an emphasis on identification of lead service
lines and galvanized service lines that are or were downstream of lead
Lawsuit Filed by 4 Water Authorities
against Michigan Dept. of EGLE
Lead copper rule
December 11, 2018 dismissed:
“PLAINTIFFS HAVE NOT PRESENTED A
CONVINCING ARGUMENT AS TO WHY
THE [LEAD AND COPPER] RULES WERE
NOT RATIONALLY RELATED TO THE
MSDWA’S [MICHIGAN SAFE DRINKING
WATER ACT] PURPOSE . . . OF
‘ASSURING THE LONG-TERM HEALTH
OF (THE STATE’S) PUBLIC WATER
SUPPLIES AND OTHER VITAL NATURAL
RESOURCES. AS A RESULT, THE [LEAD
AND COPPER] RULES ARE NOT INVALID
IN THEIR SUBSTANCE.”
-JUDGE CHRISTOPHER MURRAY
CHIEF JUDGE OF MICHIGAN COURT OF
JULY 26, 2019
CITY OF JACKSON LSLR COMMUNITY
• 2014 Flint Water Crisis -spurs action at the state level regarding new practices in safe
• June 2018 -State of MI adopts Lead Copper Rule
• August 1, 2018- City staff meet with Senator Shirkey and Representative Alexander to
request support in rejection of the drafted LCR bill. Requested to draft a new bill that
would allow City to fix lead service lines without a State mandate.
• September 4, 2018- City of Jackson City Council files a concurrence in the GWLA
request for declaratory ruling.
• December 2018- GWLA, Detroit, and other SE Michigan Communities enter lawsuit
against MI Dept. of EGLE
• March 2019 –Jackson City Council approves increase to water rates to fund LSLR
• April 23, 2019 –Jackson DPW Director Jonathan Greene presents to the public the City
of Jackson’s proposed cost estimates for Lead Service Line Replacement
• August 12, 2019- Jackson City Manager presents City’s Proposed plan for Lead Service
Line Replacement at special meeting called by Jackson County Chamber of Commerce
• September 2019- Jackson City Council votes to eliminate tier rate
• September 11, 2019 - City Manager Patrick Burtch invited by Jackson County Chamber of
Commerce to discuss what lead service line replacements will cost businesses.
• September 19, 2019- City Administrative Staff meet in Lansing with MI Dept. of EGLE to
discuss the City's Asset Management Plan to fund LSLR. EGLE indicates the City cannot delay
• October 11, 2019- City Administrative Staff are invited by Julie Alexander to meet at One
Jackson Square with MI Dept. of EGLE. In attendance was Mike Shirkey, Michigan Dept. of
Corrections, Henry Ford Allegiance Health, Consumers Energy, Blackman Twp., Jackson
County Chamber of Commerce among others.
• October 2019-Michigan Court of Claims rejects final complaint and dismisses lawsuit
• January 27, 2020-Consumers Energy proposes contract to pay 52% of the residential rate in a
20 year contract
• January 28, 2020- Jackson City Council postponed voting on the Consumers Energy contract
until the February 11th meeting
• January 29, 2020-Consumers Energy sues the City of Jackson to revert to an expired agreement
giving them a 5th tier rated structure. The 5th tier would allow Consumers Energy to utilize more
drinking water and pay only 38% of the residential rate per consumption estimates.
The total cost of the program is $232,288,000. This includes
construction, engineering, service investigation, street
resurfacing, water main replacement, smart meter upgrades, and
office and equipment costs. Per line these costs are:
Construction: $ 7,857
Engineering: $ 786
Investigation: $ 442
Street Resurfacing: $ 5,000
Water Main Replacement: $ 1,429
Smart Meter Upgrades: $ 429
Staff/Supplies/Equipment: $ 649
Total Program Costs: $ 16,592
Lansing Board of
Water and Light
The City of
The City of Detroit The City of
The City of
SEMCOG The City of
The City of Flint EPA Group Avg.
Estimated LSL Replacement Cost/Per Unit Replacement Only
High Vs. Low
LSL Replacement Costs High LSL Replacement Costs Low
HOW OTHER MICHIGAN COMMUNITIES COMPARE
Saginaw MI: Estimates $60 Million full LSL Replacement in 25 years. Received $1 Million
Grant from the State in 2018
Detroit MI: Estimates $500 Million CIP and LSL Replacement program over 5 years,
bonded $16.5 Million for DWRF
SEMCOG (Southeast Michigan Council of Governments): $2.5 Billion over 20 years
Flint MI: Received $350 Million from State and $100 Million from Federal Government in
grants for LSL Replacement and Associated Health costs. Flint has not finished full LSL
SURVEY OF MICHIGAN COMMUNITIES
ESTIMATED LSL REPLACEMENT COSTS
Lansing Board of
Water and Light
The City of Saginaw The City of Detroit The City of
The City of Newark,
SEMCOG The City of Jackson The City of Flint EPA Group Avg.
Estimated LSL Replacement Cost/Per Unit Replacement
10% Construction/Associated Fees High vs. Low
LSL Replacement Costs High LSL Replacement Costs Low
WHAT WE LEARNED FROM
LANSING BOARD OF WATER & LIGHT
• OVER 90% OF LSL REPLACEMENTS FOR LANSING BWL CUSTOMERS WERE
DONE IN CONJUNCTION WITH CITY OF LANSING INFRASTRUCTURE UPDATES.
The City of Lansing and Lansing board of Water & Light are two separate entities. Lansing
Board of Water & Light is a municipally owned utility locating in the City of Lansing. The
cost of service replacements to Lansing BWL are confined to the utility and not a charge
directly to the City of Lansing.
• LANSING BOARD OF WATER AND LIGHT OWNS THE ENTIRE SERVICE LINE
FROM THE MAIN TO THE METER.
Lansing BWL worked to gain ownership of all of their service lines to reduce costs
associated with legal fees for access on private property. Lansing BWL owned all of their
service lines when they began their replacement program.
• LANSING BWL BEGAN LSLR IN 2004, AND COMPLETED 1500 LINE
REPLACEMENTS PER YEAR UNTIL THE RECESSION IN 2009. REPLACEMENTS
DROPPED TO 300 A YEAR UNTIL THE 2014 FLINT WATER CRISIS. LANSING BWL
COMPLETED FULL REPLACEMENTS IN 2016.
Applying the rate of inflation for materials and construction costs, the cost to replace a service line
would be 16% higher in 2020 than in 2016 when Lansing BWL completed their full LSL Replacement.
• ESTIMATED COSTS FOR LSLR TO LANSING BWL WERE $3700/UNIT-IF LANSING
BWL WERE TO PERFORM LSLR NOW OUTSIDE OF INFRASTRUCTURE UPDATES
COSTS WOULD BE $6,500 A LINE.
• RESTORATION OF PRIVATE/PUBLIC PROPERTY WAS DONE BY THE
GOVERNMENT ENTITY (CITY OF LANSING) WHEN PERFORMED IN
CONJUNCTION WITH INFRASTRUCTURE UPDATES.
City of Jackson Water Users
Michigan Dept Of Corrections
Henry Ford Allegiance Health
Sun Communities Inc.
Industrial Steel Treating
Jackson Tumble Finish
JSP International LLC
MI Dept. of
COSTS TO RESIDENTS IF TOP USER RECEIVES 0% DISCOUNT
After September 2019 City Council removed the tier
rate structure for large water users. City Council
determined it is inequitable to allow large water users a
discount of a precious resource.
Qualifying Customer Assistance Program at
or below 100% of Federal Poverty Level
Qualifying families with income limitations at 100%
or below the Federal poverty level would be eligible
for this program.
Customer Assistance Program
City of Jackson is currently working to provide an
Assistance Payment program for water customers.
PA 113 of 1869 imposes limitations on municipalities in
the formation of assistance programs. With help from
local legislators and other lobbying firms, the City may
be able to provide those with the fixed incomes
financial relief for water bills.
Qualifying Customer Assistance Program
at or below 80% of Federal Poverty Level
Qualifying families with income limitations at
80% or below the Federal poverty level would be
eligible for this program