Michael Brown

Mike, | discussed with Wayne your concept to fund $11 million of necessary improvements at the city’s water plant by delaying existing water bond payments for 3 years. Wayne requested that you send a written proposal to both he and John Barton in Bond Finance so that they may evaluate it. Let me know if you have any additional questions. Ed Edward B. Koryzno, Jr. | Administrator - Office of Fiscal Responsibility State of Michigan | 430 W. Allegan Street, ist Floor | Lansing, MI 48922 (517) 373-4415 | (517) 373-0633 (fax) [email protected] = Think Green! Don't print this e-mail unless you need to. CONFIDENTIALITY NOTICE: This e-mail, and any attachments, is for the sole use of the intended recipient(s) and may contain information that is confidential and protected from disclosure under the law, Any unauthorized review, use, disclosure, or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy ail copies of the original message and attachments. Thank you 105 xxxEND_PAGE:treasury01_b07_0925_1052_117 Koryzno, Edward (T reasury)

Follow Up Flag: Follow up Flag Status: Flagged Gentlemen, Please find attached DWSD's proposals for Water Service to Flint. Two proposals are offerred based on the needs and interests of the City of Flint. Hard copies are in the mail. There remain some unknowns on the timing of various factors affecting the relationship between Flint and Genessee so while the rate proposals are firm, the illustrations remain subject to negotiations. We are pleased to advance either proposal through further negotiation to a contract. Happy Holidays! Best regards, Sue Sue F. McCormick, Director Detroit Water and Sewerage Department 735 Randolph, Room 506 Detroit, Michigan 48226 Office (313)224-4701 Fax (313)224-6067 [email protected] xxxEND_PAGE:treasury01_b03_0010_0378_295 Crry or DETRorr 735 RANDOLPH STREET Warer AND SEWERAGE DEPARTMENT Derrorr, Micuican 48226 OFFICE OF THE DirECTOR WWW.DETROITMI.GOV December 21, 2012 Mr. Ed Kurtz, Emergency Financial Manager City of Flint 1101 S. Saginaw Street Flint, Michigan 48502 Dear Mr. Kurtz: RE: Water Service Proposals to the City of Flint Thank you for the conversations over the most recent months that have allowed the Detrort Water and Sewerage Department (DWSD) to understand and appreciate the needs and concerns of the City of Flint as you approach your decision regarding the future water supply for the City. I am pleased to offer two (2) alternative proposals for continued service with DWSD. I hope that our conversations have demonstrated that DWSD is an organization that has been undergoing substantial change since the new Board of Commissioners was seated in April of 2011, and new authority granted them since. We continue to evolve on the path of operational and financial independence, and that movement has positioned us to be more responsive to our customers and demonstrate our ability to be more effective and efficient. While we acknowledge and appreciate the past, we are positive that our present and future are, and will be decidedly different, and that our customers and customer communities alike have begun to appreciate that over the past year. Please review the proposals attached. We remain prepared to evolve the proposals based on the City of Flint’s specific requirements, and take the City of Flint’s requirements to a final contract on a expedited timeline. Best regards, Sue F. McCormick Director SFM a Perens eran aed ial