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Gary— In reading the full e-mail string you reference, it indicates that the issues raised by Mr. Busch were discussed on a call between DEQ staff and Treasurer Dillon. In the final e-mail of the string, DEQ Director Wyant notes that “all indications are that we (DEQ) are supportive of KWA and its cost benefits...” | would also clarify that the “approval” signed by Treasurer Dillon in April of 2013 dealt only with the eventual transition to KWA, from DWSD (see page 209 of 338 in documents posted today). Terry

Terry, As |’m sure you're aware, there was a massive email release today regarding Flint water. One email (attached) contains an email chain between the DEQ and Dept. of Treasury. One of the emails, a March 26, 2013, message from Stephen Busch shows that using the Flint River for an extended period of time could lead to possible microbial and disinfection by-product concerns. The city, under an apparent order from the emergency manager, switched to the river for its drinking water source while awaiting the KWA. Subsequently, the city’s drinking water, following the switch to the river, was found to contain TTHM and suffer from multiple microbial problems (and an alleged connection to Legionella), as warned by Busch. | wanted to see if treasury would comment on if Mr. Busch’s concerns in 2013 were taken seriously (or discussed at all) when the city’s switch occurred and if Treasury took these concerns into consideration when signing off on the EM’s orders that allowed the city’s switch to the river? 1am hoping for a response ASAP for my story. Thanks. Gary Ridley | The Flint Journal-MLive Media Group | 810-280-9516 | [email protected] xxxEND_PAGE:treasury01_b39_6977_7316_063 Lamphier, Wendy (Treasury)

The year-long extension ended up costing the city more than $80,000 for the two of them. So, even if we separate them and they individually don’t hit the $50,000 threshold, was there any requirement for Earley to sign a resolution or order to make this extension? He did so for the original 9 month contract, but not for the 1-year extension. It just seems odd that city money could be spent without any record on the city’s end. Gary Ridley | The Flint Journal-MLive Media Group | 810-280-9516 | [email protected]

Gary... It is my understanding that this issue wouldn’t have come to Treasury for approval. Under PA 436, only requested purchases/contracts of over $50,000 need approval by Treasury, if they were not competitively bid. The statutory provision is below: 141.1552 Additional actions by emergency manager; suspension of power of administrative officer and governing body; contracts subject to competitive bidding; sale or transfer of public utility; limitation. Sec. 12. (3) Except as otherwise provided in this subsection, any contract involving a cumulative value of $50,000.00 or more is subject to competitive bidding by an emergency manager. However, if a potential contract involves a cumulative value of $50,000.00 or more, the emergency manager may submit the potential contract to the state treasurer for review and the state treasurer may authorize that the potential contract is not subject to competitive bidding. xxxEND_PAGE:treasury01_b38_6783_6976_190

Terry, \'m working on a story over here and I’m hoping you could help me out. Flint Emergency Manager Darnell Earley apparently gave two Flint water investigators a contract extension, but | have been unable to find any actions by him approving the expenditure on the city side. Below, is an email | sent to city attorney Tony Chubb on the issue for your reference. [have a copy of the initial order appointing them for 9 months, copies of the county's motions to extend the contract and the eventual approval. However, | cannot find anything involving Earley approving these extensions (although | found multiple other resolutions/orders from the same time frame extending and/or modifying extensions for other contracts.) So, I’m trying to figure out if there is anything with the state approving this extension? Also, could you clarify the rules for me that Mr. Earley was required to follow in terms of approving such extensions? Thanks. Gary Ridley | The Flint Journal-MLive Media Group | 810-280-9516 | [email protected]