Correspondence among

In follow-up to our meeting this morning, attached is my memorandum regarding this matter. If you have any further questions, please let me know. Peter M Bade Chief Legal Officer City of Flint p 810 766 7146 f 8102322114 xxxEND_PAGE:treasury01_b20_2634_2931_260 DEPARTMENT OF LAW MEMORANDUM TO: ‘Wayne Workman Randall Byrne Fred Headen cc: Darnell Earley FROM: Peter M. Bade yw RE: Altemative Proposal for Sale of Water Transmission Main DATE: May 28, 2014 On May 12, 2014, Emergency Manager Darnell Earley presented to the Flint City Council a proposal for sale of a portion of the 72 inch water transmission main to the Genesee County Drain Commissioner. A special meeting of the Flint City Council was held on Monday, May 19, 2014 to discuss the proposal. Pursuant to MCL 141.1559(2), Council adopted a resolution rejecting the proposal. A second special meeting was scheduled on Wednesday, May 21, 2014 for the purpose of discussing an alternative proposal. At the May 21* meeting, Council members acknowledged they did not have an alternative proposal. However, pursuant to a motion by Councilman Sheldon Neeley, a resolution was adopted recommending the water main sale price be increased to $4 million dollars, with equal payments over two years. Pursuant to MCL 141.1559(2), Council had seven (7) days from the date of their rejection of the proposed action to submit to the local emergency financial assistant loan board an alternative proposal that would yield substantially the same financial result as the action proposed by the xxxEND_PAGE:treasury01_b20_2634_2931_261 Emergency Manager. Accordingly, the deadline for submission of Council’s alternative proposal was Tuesday, May 27, 2014. Council did not submit an alternative proposal to the local emergency financial assistant loan board. S:\P. MM to DEarley re Water Transmission Main 5-28-14.docx xxxEND_PAGE:treasury01_b20_2634_2931_262 Byrne, Randall (T Treasury)