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PLAINTIFF'S EXHIBIT emcj BF:town manager TOWN or PARADISE VALLEY 6401 EAST LINCOLN DRIVE town 06PARADISE VAUEV- Ara2NA 65253 PHONE: E6021 948-7411 m: (9021 851-3715 June 29, 1990 Edward G. Blundon City of Phoenix Water and Wastewater Department 1)55 North Fifth Street Phoenix, Arizona 85004 Subject: Town of Paradise Valley Proposal Purchase of Phoenix Water System Dear Mr. Blundon: The Town of Paradise Valley, our consultant, and our Council members are very appreciative to have the opportunity to consider the purchase of the Paradise Valley service area of your City's water system. The information that you have provided us has been thorough, complete, and in detail, so that an honest evaluation could be made. All Town of Paradise Valley Council members and our residents expected that the City of Pf'oenix would be our water providers in perpetuity. We are disappointed that the City of Phoenix does not wish to keep that goal. You are respectfully requested by this letter to reconsider your desire to sell- this small insignificant segment of your system. It is our understanding that there are two private water companies who have, or will be, submitting valid proposals to you. As you know, Paradise Valley Water Company has a longstanding relationship with the Town of Paradise Valley and we would be most comfortable with them if they would be the successful purchaser. Integration into their system would certainly be a logical step. Given our basic desire to have you continue to service us for the years ahead, and secondly, the knowledge of two private companies submitting proposals, the Town of Paradise Valley at this time will not submit a proposal to you for the purchase of that part of your system which serves Paradise Valley residents. As 1 said, we are not uncomfortable with you being our water provider and we have had a longstanding, amicable CAP CO JEN 0011999 Ed Blundon/City of Phoenix Water June 29, 1990 Page Two relationship with the City of Phoenix and again ask you to reconsider your efforts to sell to others. Thank you again for your consideration. 90JLB031/JLB CAP CO JEN 0012000