Possible conflict of interest with US Water / Wade Trim and GSG ----------

From Bob Monette OPTECH --- FGUA have chosen to ignore the obvious conflict of interest which exists between your Executive Director, Mr. Robert Sheets and the selected firm US Water/Wade Trim. We understood in June that Mr. Sheets and his firm, GSG, have worked as a consultant on behalf of Wade Trim within the past twenty-four months.

Robert Sheets response ---The board of FGUA is aware that GSG prepared a Revenue Manual for Wade Trim to use with its clients in the State of Michigan two years ago. GSG was compensated for its work and has had no contractual relationships with Wade Trim in any proposal or other state since then.

FGUA is proposing to award this major contract to a firm that has priced their service over $ 21,000,000 million dollars higher than the lowest cost proposal of $ 58,000,000. The companies were each clearly told to give our most competitive price with our Proposal. You should not give them “high grades” for all their “promised services”, only to then let them bring their cost down to our price model after the selection. Their price is 36% higher than FUGA’s price for the project. You cannot possibly negotiate down from this price without a SIGNIFICANT reduction in customer service.