CITY OF DETROIT WATER AND SEWERAGE DEPARTMENT INTRA-DEPARTMENTAL CORRESPONDENCE, May 3, 2011 10: Executive Management Team FROM: Darryl A. Latimer Deputy Director RE: Strategic Planning Initiative The fundamental clements of the new strategic planning initiative launched by the City and DWSD include: = Development of a five-year Capital Improvement Program (CIP) that provides a systematic plan for providing infrastructure within a prioritized framework; * Development of a Capital Financing plan that fulfills the agen fiduciary responsibilities and efticiently delivers needed services with minimal impact on ratepayer Based on our initial review of the existing CIPs, it has become apparent that these plans: ‘© Include major projects thal are, in many cases, based on operating strategies and scenarios that are no longer pertinent, or appropriate; © May not reflect current needs; # Ned to be subjected to a detailed review {o ensure that they are consistent with current needs and the overall initiative Therefore, effective immediately, ALL projects that have not yet been initiated are to be halted until Curther notice. Work can only procced with specific snd forntal authorization trom the office of the Assistant Director of Financial Servives prior ta the final authorization from the Deputy Director. includes task authorization of as nceded services, amendments and new constadts, In the meantime, we will be engaging in a detailed review of every project in the CIPs, striving to produce revised plans to be published by July 1. This process will require input {rom all areas of the Department. Your cooperation with this process will be appreciated. DALinw