Correspondence among

City’s usage is 14 MGD/Day Timeline is 9 months until June 2016 Fixed Cost is $662,100 for 9 months or $5,958,900 Commodity Rate is $501,383/month Total Monthly Cost is $1,163,483 Cost until June 2016 is $10,471,347 The City does not know the cost to move the water plant into stand-by mode. However, they have indicated that there might be some reduced costs as lower chemical costs will be incurred. Eric Cline | Department Manager | State of Mictugan Michigan Department of Treasury | Local Government Financial Services Division | Fiscal Responsibility Section 430 W. Allegan Street, 3rd Floor | Lansing, MI 48922 Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-8228 E-mail cliner 1 @muchigan.gov CONFIDENTIALITY NOTICE: This e-mail, and any attachments, 1s far 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 1s prohibited. If you are not the intended recipient, please contact the sender by reply e-mail, and delete/destroy all copies of the orginal message and attachments Thank you. 14 xxxEND_PAGE:treasury01_b35_5648_6098_032

fyi... | have not looked at it but Brad sent us some 'stuff' (attached). Please check to see if any of it is worthwhile in adding to our document.

Importance: High council approves re.html Walling previously said the city would save $19 million over eight years by getting water from the KWA. “It’s a historic night in the City of Flint,” Walling said. “The savings will be less with the capacity level approved by city council because there will be increased treatment cost for the river water.” He said the DEQ told the city it needed to get 18 million gallons per day or there would have to be additional work done at Flint’s water plant. Flint’s water plant and the Flint River is currently the backup for Flint and Genesee County, however, the plant only operates four times per year. Tuesday’s meeting followed weeks of discussions and special meetings surrounding the resolution. “We got there,” Councilman Joshua Freeman said. “That’s the important thing.” “Going with Karegnondi is the best decision. We have no opinion on the economics of the decision,” said Rebecca Fedewa, Flint River Watershed Coalition executive director. “If we start drawing water out of the Flint River, we are at risk of having to start releasing water from our reservoirs.” xxxEND_PAGE:treasury01_b37_6553_6782_153 Stanton, Terry A. (Ti reasury)

Flint DEQ backgrounder. Some of the info may not be 100% accurate. Note the highlighted sections:

Fyi... see if the dates line up with yours. Basically the May ’14 date he refers to below is effect their ‘final final’ signoff on the use of the river. He had told us April of ’14.

Fyi I was also asked... somewhat related & in terms of the chronology you are working on: i) the City sold that section of pipeline to the County... would that impact an effort to reconnect to DWSD ? ii) confirm when KWA is going to be done. Anyway to pick up the schedule ? We can cover this when we talk @ 3:00