Correspondence between

With the declaration apparently the Mayor is appealing for Fed help to Cong. Kildee. That seems reasonable.

ari.gov>; Saxton, Thomas (Treasury) <Saxtor? @rnichigan.gov> Not very soon. They have only teen there 6 months and the City now has a very large deficit in the Water Fund. We talked with the new Mayor about it on Tuesday. | wil probably be in Flint next week with the Mayor ard Clty Administrator.

Fyi Sent from my iPhone Begin forwarded message:

1 don’t know why she would say this after all the work we’ve done to get it to this point. We set up the new deal with GLWA, got the money, along with the leadership of Ananich and that of the Republican leadership and Approps. folks, and Treasury is administering. We gave the city the $2M earlier so what's she talking about?

also have a voice mail from Rep Neeley’s office to call ASAP. Sure it is the same topic Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Yes, do you want an update? Jim Sygo should be in the loop also Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Importance: High Natasha Henderson is becoming a liability.

On it.

Mayor, The state appropriation is being made to the DEQ. | have copied Director Wyant and his Chief Deputy Jim Sygo on this. We recommend a conference call with DEQ, Mott and the City to agree on payment procedures. It will be necessary to have a list of expenditure amounts for water and any other equipment, services and supplies that will total up to the $12,000,000 budget. Treasury wil! participate and help any way, but it is important DEQ , Mott and the City agree on the process. We can participate in a call today or Friday. Wayne

We will advise the City to proceed immediately Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Here is the interim report from February also Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

Attached is the report. The report is fairly short & quickly identifies actions that should be taken.

Checking on it now Sent from my iPhone

A lot of complaints about Natasha these days. Of course, I have a lot of complaints about myself and this Flint thing. If I had acted more quickly on some of my minister's complaints we at least would have had a more robust discussion. Do we have a copy of the Veolia conclusions somewhere? xxxEND_PAGE:treasury01_b35_5648_6098_143 Dempkowski, Angela (T reasury)

Gentleman — I represent the Genesee County Drain Commissioner’s Office. The Commissioner requested that I send you the attached information regarding DWSD supplying water to Flint. Sincerely, Kevin Kilby Partner and Attorney at Law MeGraw Morris PC. 2075 W. Big Beaver Road Suite 750 Troy, Michigan 48084 Office: (248) 502-4000 Fax: (248) 502-4001 Cellular: [email protected] www.mcgrawmorris.com CONFIDENTIAL AND ATTORNEY / CLIENT PRIVILEGED: This e-mail and any attachments are confidential, intended for the addressee only and may be attorney/client privileged. If you are not the addressee, then please DO NOT read, copy or distribute the message or any 1 xxxEND_PAGE:treasury01_b35_5648_6098_134 attachment. Please reply to the sender that you received the message in error and delete it. Thank you. CIRCULAR 230 DISCLOSURE In accordance with U.S. Treasury regulations, if this message from McGraw Morris, P.C. (or any attachment) contains advice concerning one or more Federal tax issues, it is not a formal legal opinion and may not be used by any person for the avoidance of Federal tax penalties. xxxEND_PAGE:treasury01_b35_5648_6098_135 McGraw Morris ec. GRAND RAPIDS TROY SAGINAW THomas J. MCGRAW 2075 W. Bic BEAVER ROAD G. Gus Morris Suite 750 Craic R. NOLAND Troy, MICHIGAN 48084 Stacy J, BELISLE TELEPHONE: (248) 502-4000 KEVIN K, KILBY CHRISTOPHER J. RAITI Joun A, MULLETT FACSIMILE; (248) 502-4001 October 12, 2015 Via Email: [email protected] William M. Wolfson Chief Administrative and Compliance Officer/General Counsel, DWSD Interim General Counsel, GLWA 735 Randolph Street Detroit Michigan 48226 Re: Increase in average day and maximum peak day by GCDC Dear Mr. Wolfson: The Genesee County Drain Commissioner’s Office, Division of Water and Waste Services (“GCDC”) has been working diligently to fulfill the demands of the various state and federal agencies, Governor Snyder, and the people of the City of Flint (“Flint”), to provide Flint with water from the Detroit Water and Sewerage Department (“DWSD”). These efforts include placing approximately seven (7) miles of the seventy-two inch (72”) water transmission pipeline (“Pipeline”) that GCDC purchased

Agreed. They also voted 7-1 to leave DWSD Wayne L. Workman Deputy State Treasurer Michigan Department of Treasury

| noted in one of the slides that the council voted 7-1 to move back to DWSD and Jerry is quoted as not being in favor of it. | think they left out his reasoning for that and that would have been nice.

This will add to the $14, million deficit. We believe they may run out cash quite soon and have asked for a cash flow projection Sent from my iPhone

Follow Up Flag: Follow up Flag Status: Completed Let me check to sme if ican get someone to do a quick calculation

So we don't forget the money; Flint is now running a $14,000,000 deficit in the WaterFund due to two lawsuits that have gone against the City. It has reduced what they can bill some folks have stopped paying believing they will be getting big credits or refunds. Also water cont be shut off for nonpayment under one suit Sent from my iPhone Begin forwarded message:

1 wish we could get realistic rather than inflamed, but I'm afraid the flames have long ago been stoked by some missteps that occurred in the switchover to Flint River water. Let's see what we can do.

Can we cail the Drain Commissioner immediately and encourage him to put a press on to complete KWA? xxxEND_PAGE:treasury01_b37_6553_6782_170 STATE or MICHIGAN RICK SNYDER EXECUTIVE OFFICE BRIAN CALLEY GOVERNOR LANSING LT, GOVERNOR CONTACTS: FOR IMMEDIATE RELEASE Sara Wurfel or Dave Murray, Governor's Office September 29, 2015 517-335-6397 Terry Stanton, Department of Treasury 517-335-2167 Gov. Rick Snyder awards Flint $2 million in Distressed Cities grants for water system infrastructure improvements Funding to be used for leak detection, waste incinerator replacement LANSING, Mich. — Gov. Rick Snyder today awarded Flint $2 million in grants for water system infrastructure improvements, part of an overall $8 million plan to help cities through the Financially Distressed Cities, Villages, and Townships Grant Program. Flint is among six municipalities receiving grants through the program. The city will use the funding to detect leaks in its water lines and replace its Water Pollution Control Facility Incinerator. “There are opportunities for the state government to assist Flint city leaders as they address issues related to the city’s water system,” Snyder said. “These grants will help recovering cities improve public services and infrastructure, improving the quality of life for ail residents.” The grants to Flint were announced today at the Haskell Community Center by Harvey Hollins, director of the state’s Office of Urban Initiatives and Wayne Workman, the state’s deputy treasurer. They were joined by Dan Wyant, director of the Michigan Department of Environmental Quality, Flint Emergency Manager Jerry Ambrose, Mayor Dayne Walling, state Senate Minority Leader Jim Ananich, state Reps. Sheldon Neeley and Phil Phelps. Flint was awarded $900,000 to aliow the city to hire a contractor to perform a leak detection survey of the city water lines. The city will receive a map of leak locations and an assessment of leak severity, allowing the city to prioritize leak repair. The project also covers the expense of conducting a water pipe line wall thickness condition assessment on a portion of the city’s pipes. The assessment will guide the city’s water main replacement program. The city also was awarded $1.1 million to shut down its current Water Pollution Control Facility incinerator and replace it with new facilities which will allow for the disposal of waste in landfills. The existing facilities are not up to federal Environmental Protection Agency standards. xxxEND_PAGE:treasury01_b37_6553_6782_171 Municipalities are eligible for the grants of they are experiencing one or more conditions indicative of “probable financial stress,” as defined by Public Act 436 of 2012, the Local Financial Stability and Choice Act. Under the grant program, funding may be used to pay for specific projects, services, or strategies that move a city, village, or township toward financial stability. There was $8 million appropriated for the program with a $2 million cap, per local unit. xxxEND_PAGE:treasury01_b37_6553_6782_172 Koryzno, Edward (T. reasury)

Follow Up Flag: Follow up Flag Status: Completed We will get going on this Sent from my iPhone ar.gov> wrote: On Sep 28, 2015, at 9:01 AM, Muchmore, Dennis (GOV) <muchmered@rnichig | know that I’m a broken record on this one, but | need some specific attention to Flint today. | need you all to reconstruct a timeline of events from the records we have relating to the Flint KWA DWSD controversy as it is becoming unwieldy. Please go back and review the Flint procedures and find the initial decision making process relating to the switchover. The first time | remember it is in 2012 (August | think) when the county started pitching the project at council. Then we instituted Mike Brown as EM and from there on it became to a certain extent our problem. However, if | remember right, this was a Flint idea from the start. Then, if you can trace the financial drivers of the decision to present day it would be important. | think for the most part the explanation you had in the distressed cities reports were helpful...my point being that this was an idea to help the city survive and without drastic changes it wouldn’t have, KWA being one of them. We'll take any other ideas that you have. xxxEND_PAGE:executiveofficeemails21_b0854_2235_2235_1

| know that I’m a broken record on this one, but | need some specific attention to Flint today. | need you all to reconstruct a timeline of events from the records we have relating to the Flint KWA DWSD controversy as it is becoming unwieldy. Please go back and review the Flint procedures and find the initial decision making process relating to the switchover. The first time | remember it is in 2012 (August | think) when the county started pitching the project at council. Then we instituted Mike Brown as EM and from there on it became to a certain extent our problem. However, if | remember right, this was a Flint idea from the start. Then, if you can trace the financial drivers of the decision to present day it would be important. | think for the most part the explanation you had in the distressed cities reports were helpful...my point being that this was an idea to help the city survive and without drastic changes it wouldn’t have, KWA being one of them. We'll take any other ideas that you have. xxxEND_PAGE:executiveofficeemails21_b0853_2234_2234_1

QY>; Khouti, Nick (TREASURY) eae awyant Dan (DEQ) OVD) argey>; Roberts, John OF fe We will have an update later today frorn our call with the City yesterday. Wayne L. Workman Deputy State Treasurer Michigan Bepartment of Treasury