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Sorry, some parts should have said "per month", not "per day." xxxEND_PAGE:treasury01_b31_4719_5108_331 Cousineau, Sara (T reasury)

Harvey, You had requested additional information on the fixed charges used in Flint's water rates. Hopefully the attached helps. I have also included some additional information showing that that many of the recent increases in rates were done prior to the EM being appointed. And also, a reminder that the system was in a deficit position when the EM came on board, making additional increases necessary. While the system is now solvent, it is not as strong as it once was. And the real challenge for all of is to figure out how to get rates down to an affordable level. But is cannot be done by simply reducing rates! I am sure you are aware that the Council voted last night to "do everything in their power" to return to the Detroit system. I am attaching my statement in response. Call if you have questions. Jerry xxxEND_PAGE:treasury01_b31_4719_5108_326 *syuauodwos ajed Jamas pue 19}eM ay) Jo [!EJap ay} S| BuIMO]}O4 “psemso} Sujod saiywoud Aay ay} ase Aypqepsojye pue ‘Ayjenb ‘AjYeS *SaSeas oul aunyny Susyjesapow pue sayes Suiziiqe}s Jo jeoS ay} yM apew aiam ‘powad wyaqu! ue 10J JaALY JUL]4 BY} 9ZI]IIN 0} UOIS!IDap ay) pue “yAAy ay] Ul AQUNOD aasaUay YM JaUYed 0} UOISIDap ay) BuIpNjoUt ‘suOISsIZap JBYIO “WajsAs aU) JO UOIIISOd jeIDUeUY ay} azI|IGeIS 0} Alessadau alam ‘TLOZ 232] u) Jadeuey AduUaSawy ue pausisse aye} ay} asojaq pay2eue asaM YoIYyM yo Auew ‘saseaou! ayes JUeIYIUTIS “ZL0@ ‘O€ aunr Aq uo!sod jelsueuy yoyap e JU) pauljsap peyY ‘AjjelmoUeUY ajqeys AJaA SEM Oe sueaA OT UeY} SJOW YIIYM ‘Wa}sAS JU] SUL *‘adueyo 10) suoiepuawwora. OU apew PTO? Ul Aj{D ay} 104 aUOp Apnjs ajes 18}3em ay) pue ‘ode suead AueW paysl|qejsa aiam ,Sasueyo paxly,, aq 0} peulwuayap sjunowe ay, *I[Iq siasn jeUapisal adesare ay} Jo %OP Aja}ewIxOsdde 10} syUNODIe J}I1q JaMaS PUR Ja]eEM JY) JO} BBseYD pax [210Y ayy WUI|4 Ul ‘agesn 0} payul| aq sny} ued pue Ajpowwos ayy Jo JUNOWe ayy YIM AeA JuayXa UJeLad e 0} Sulyeys pue ‘saqyy19N ‘sjesiways ‘puey 19430 ay} UO “sajdwiexa ae ‘ad|Asas 1qap Se [aM Se ‘BIN JONIYse.yu! UOIINGNySIP pue ‘quawWy}eas3 ‘Buipjing Suipnyjour ‘waysAs ay} 30 adueUajUJeWW pue UO]JeJ3dQ “pasn si AyjpowWWOD ay} Jo YINW Moy JO Ssajpsedas ojesado snwW YII4yM Waysds AQYIZN BY} JO JUNOWEe UjeY2d e s} a4ay) Jey) S| aBIeYo paxy ayy Jo JdaIu0) ay! ‘sanuanad ajesauad 0} BB1eY2 Aypouwod e pue adueys paxy e yoq saBsey> yun ‘swaysAs AueW a>!7 ‘ajesado 0} waysds ay} Jo Aqjiqe ay} BuljIajye INoY WM Sayed sonpad Ajduis youued 3uQ “ajzesado 0} Ajjenuue sanuanad UI UOITIW OLS Pue UOII|IWW G95 UaaMjaq Sspaau ‘Aepo} painyuo2 Ajjuauund se ‘Waysds ay! ‘000‘O0T Ajayewixosdde jo uoyjeindod e sansas mou ‘O00‘00Z UeY} alow yo UONe;Ndod e aruas 0y Ayoeded ay] sey YoIYM ‘WaysAs JUI]4 94} ‘Aja}euUNOJU) “passauppe aq jsnui YyoIyM sanss! ue pue ‘susajsAs 18430 0} UOS|JedWOD U! YSIY Alaa ae SadseY? Sully ‘YJUOW Jad s}so9 aBesane GYTS IW “¢ pungue s} aquapisai & Ul SJBSN JO JaqUUNU aBeJaAe BU} JI aUI] JO INO JOU SI ASN aM adesaAe ayy OS ‘suO]jed Sbd » SuuN Z) Aep sad suoyjed OOZ‘s Ajayeuxoidde jo uolduinsuos UO pased Ss} [JIG jeNUApisad aBesaAe By} 1Oy a}eUINSa je9UaB $,AIID aYL ‘Aep Jad suoye3 OO0’E pue 00‘ UBaMIaq Jo ‘Aep Jad J33eM JO SUO]|e3 COT pue 08 U2aMjaq Sasn UOSUad aZesaAe BY) JEU} BJeIpUI SIIJsSIVe}S jeABUaH S3DYVHO ALIGOWAWOS GNV GSXid - SALVY YSMAS/YSALVM TWILNAGISAY xxxEND_PAGE:treasury01_b31_4719_5108_327 ES ws] [wes TOOL POWLUOD | %L9 Eg L6$ bb'SS$ y ee | | wwoui | OBEYS | “pon pT {| yee | ee 298 AOVYAAV z6L Lo'evLs 8p'ves [sree O6'2z$ = | yy'sas$ 00'2 eBieyd | ALIGOWWOD | ej0uler | ALIGOWNWOD | Ia S2]Aag UYaMaAS B/S YaLVM "OAY 1230.1 40MOS ,oBseyD 40} @9]Al@S syuy SALVY YAMASMALYM LINN Yad ajyowles LINN FOYVHD «8/G 8BIeYD | Yad SODUVHO J4emes ALIGOWWOD | 89]419g 1832 | ALIGOWAWOD YaMas YALVM Jesp Jenuep|sey eBesoay xxxEND_PAGE:treasury01_b31_4719_5108_328 ASV %SE cyszs$ 28°8z$ 2ozs$ 6r78$ BELLIS Zhéch UStes beohh O96cS OGRE Tl YUL £002 LOZ LLOz Aine 0} JON poy2eUy seseeJou| “IAW ue JO JUaW]UIOdde 3y} 0} JoLd apew aim SasealdU! JUaIaI JY} JO yon Jey) “BAaMoOY ‘B]ON) “Pjoj-aary} Jsowwje — EO0Z aauIs AjUBIYIUTIS paseasdUI aAeY Jamas PU 197eM 10f SJaSN [eI]UaPISAs 0} SOD [[eE1BAO SASVIYONI JL ve LNADIY %ITE %O 9987$ 668 LO'6yLS "GOL be veh 7102 vlLO% Ain¢ Bny W3 Aq pojoeuy SOSPOIIU[ xxxEND_PAGE:treasury01_b31_4719_5108_329 ZSS'ELs pe}Dpjso1up, 2798'S pazajjsey 029'92$ syossy jeyde5 Wa Jepun Snye4g Loz e102 {suoTITIA Ul S}OSSy) JOMOG pur Joye, 3€00Z Uj UY BuUOI}s Ssay [1195 S! 1! ‘SANISOd Mou s! Wa}sAs ay} JO UOISOd jeIDUeUI) BYI APIUAA *ZTOZ Ul UOINISOd WOYap BU IIS Sem WaysAs Ayan ayy ‘“Yaseuew Aouadiawy ue Jo JuawWyUIOdde ay} 0} JOIJd ape saseasoUl JO aids U| “}IYap U! SBM Wa}sAs ay} Baym quod a1) 0} pauljzap pey uonisod jeiueuy ayy LLOZ Aq ‘“JaAaMOH “BuOINS SEM EQOZ U! WaISAS Jamas puke Ja1eM ay} Jo UOWIsOd ;B|DUeUY aUL waisAs Jamas pue 1312/4 34} JO UO!ISOg jeIDUeUIy 3Yy} Ul aSueY>D xxxEND_PAGE:treasury01_b31_4719_5108_330 Byrne, Randall (T reasury)

Greetings All, Attached is a brief overview of the information to be presented on Monday at the 1:00pm meeting with Steve Linder of the Sterling Corporation regarding Flint Water. The meeting will be held at the Sterling Corporation’s offices on 106 W. Allegan, Ste. 2 in Lansing. | have sent the appointment and here are the list of attendees: Harvey Hollins, Director, Governor's Office of Urban and Metropolitan Initiatives Gerald Ambrose, Flint Emergency Manager Natasha Henderson, Flint, City Manager Liane Shekter Smith, Chief, Office of Drinking Water and Municipal Assistance (DEQ) Stephen Busch, Office of Drinking Water and Municipal Assistance (DEQ) Brad Wurfel, Director of Communications (DEQ) Please let me know if you have any questions, thank you. Stacie Stacie Clayton, Assistant Director Harvey Hollins III, Director Governor's Office of Urban and Metropolitan Initiatives 3044 West Grand Boulevard, Ste. 14-650 Detroit, MI 48202 313.456.4994 (office) claytons3@michigan.gov xxxEND_PAGE:deq03_b083_0096_0096_1

Greetings All, Attached is a brief overview of the information to be presented on Monday at the 1:00pm meeting with Steve Linder of the Sterling Corporation regarding Flint Water. The meeting will be held at the Sterling Corporation’s offices on 106 W. Allegan, Ste. 2 in Lansing. | have sent the appointment and here are the list of attendees: Harvey Hollins, Director, Governor's Office of Urban and Metropolitan Initiatives Gerald Ambrose, Flint Emergency Manager Natasha Henderson, Flint, City Manager Liane Shekter Smith, Chief, Office of Drinking Water and Municipal Assistance (DEQ) Stephen Busch, Office of Drinking Water and Municipal Assistance (DEQ) 1 xxxEND_PAGE:executiveofficeemails21_b0935_2386_2387_1 Brad Wurfel, Director of Communications (DEQ) <SomnioGlobal_Ozone disinfection technology. pdf> xxxEND_PAGE:executiveofficeemails21_b0935_2386_2387_2

When: Monday, March 09, 2015 1:00 PM-2:00 PM (UTC-05:00) Eastern Time (US & Canada). Where: Sterling Corporation in the Hollister Building, 106 W. Allegan, Suite 2, Lansing, MI << File: SomnioGlobal_ Ozone disinfection technology.pdf >> Attendees Harvey Hollins, Director, Governor's Office of Urban and Metropolitan Initiatives Gerald Ambrose, Flint Emergency Manager Natasha Henderson, Flint, City Manager Liane Shekter Smith, Chief, Office of Drinking Water and Municipal Assistance (DEQ) Stephen Busch, Office of Drinking Water and Municipal Assistance (DEQ) Brad Wurfel, Director of Communications (DEQ) xxxEND_PAGE:deq04_b415_4661_4661_1

Jerry, Thank you very much. I believe IMCF equals 7480 gallons of water. If that is true then 10 units = 1 MCF. Best, Harvey Harvey, Quick response, subject to verification by Liz Murphy: Components of the average charge: $ 57.38 fixed-cost recovery charge $ 91.63 consumption charge $149.01 Consumption charge based on 7 units of water @$13.09 per unit 1 unit = 748 gallons of water There may be a way to convert a unit into an MCF, but I do not know it. Jerry Ms. Murphy, Thank you. The calculations in the table was provided by treasury and il was seeking clarification. barn not a water expert, but i learned that typically, most rates have two components. 1. Fixed-cost recovery charge This charge is based on the size of the water mater at the home or business. Most rasidential customers will have a meter between 5/3'"s of an inch and 2 inch. 2. Consumption Charge xxxEND_PAGE:executiveofficeemails21_b0840_2205_2207_1 This charge is based on the amount of water used. The rate for usage is determined by the distance and elevation of the horne or business from the water source. MCF is usect in rany place for caiculating rates; however, since Flint is currently not using this calculation, what are the cost components that make up the $149 ave. monthly charge to the resident? Best, Harvey

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