Correspondence among

FYI Lynne Adamczyk Executive Assistant Office of Governor Rick Snyder 517-373-3400 (0) 517-241-9412 (d) [email protected] xxxEND_PAGE:treasury01_b28_4390_4585_024 City oF Derroir 735 RANDOLPH STREET WATER AND SEWERAGE DEPARTMENT Detror, Micuican 48226-2830 OrFtce OF THE DIRECTOR WWW.DETROITMI.GOV January 12, 2015 Mr. Darnell Earley, Emergency Manager Mr. Dayne Walling, Mayor City of Flint 1101 S. Saginaw Street Flint, Michigan 48502 Dear Messrs. Earley and Walling: Regarding: Re-establishing Detroit Water and Sewerage Department Water Service I was recently referred to a report in MLive in which there was reference to the City of Flint (City) potentially re-visiting its decision to utilize Flint River water as a water source prior to the completion of the KWA pipeline. Within that report, there appeared to be some incorrect assumptions about the cost of water service from the Detroit Water and Sewerage Department (DWSD). | write to you today to express the willingness of DWSD to resume delivery of drinking water to the City and its residents. We have monitored the water quality issues that have troubled the City since May, 2014, and understand that many of the difficulties stem from the limited access to source water. Please know that DWSD is ready, willing and able to resume service to the City if you so desire. If the City is interested in a long term arrangement with DWSD, with this goal in mind, we offer that the City can immediately reconnect to the DWSD system at no additional charge to the City and at the same “expired contract” rate that the City was paying in April, 2014, modified to reflect the 4% increase experienced by all other wholesale customers in July, 2014. The resulting rate structure is a fixed monthly rate of $846,700 and a commodity rate of $14.92/Mcf. In order to facilitate contract negotiations, DWSD is willing to extend this rate to the City (and to Genesee County as the City’s partner and former customer) until June 30, 2015. We at DWSD take very seriously the matter of drinking water quality, and we are as concerned as you must be by the continued quality issues faced by the City. We are confident that DWSD can provide you with a solution for reliable, safe, high quality water on an expeditious timeline. Please contact me directly at (313) 224-4701 if you wish to discuss this offer further. Sincerely yours, ere Sue F. McCormick Director ce: Governor Rick Snyder — (via U.S. Mail) Flint City Council, (via U.S. Mail and Electronic Mail) Eric Mays; Jacqueline Poplar (c/o Jennie Johnson); Kerry Nelson (c/o Jennie Johnson); Joshua Freeman; Wantwaz Davis; Herbert Winfrey (c/o Jennie Johnson); Monica Galloway, Vicki VanBuren; Scott Kincaid (c/o Jennie Johnson) Jeff Wright, GCDC — (via Electronic Mail) Mayor Mike Duggan (via Electronic Mail) James Fausone, BOWC (via Electronic Mail) Robert Daddow, GLWA (via Electronic Mail) xxxEND_PAGE:treasury01_b28_4390_4585_025 Byrne, Randall (Treasury)