City of Port Wentworth 7224 GA Hwy 21 Port Wentworth, GA 31407 October 19, 2022 Clearwater Solutions LLC Steve Cawood, President 2178 Moores Mill Rd Auburn, AL 36830 RE: Addendum to October 5, 2022 Letter of Material Breach Dear Mr. Cawood, This letter serves as an addendum to the City’s October 5, 2022 letter to Clearwater Solutions LLC (“CWS”) showing additional material breaches of CWS's contract with the City of Port Wentworth. All of the City’s stated breaches and requests for reasonable curative steps in the October 5, 2022 letter are reiterated and the City continues to believe each breach is a material breach and requires serious curative steps, and such are reiterated and incorporated herein by reference. This letter serves notice upon CWS of additional and serious material breaches of which the City was not aware at the time of the October 5, 2022 initial letter. Specifically, this Addendum refers to deficiencies and defects at the City’s Wastewater Treatment Plant. The provisions of the contract of which CWS is in material breach with respect to the Wastewater Treatment Plant are numerous, and include multiple sections from Section 2 (CWS's General Obligations) and Section 3 (CWS's Specific Scope of Work For Water and Wastewater Services).CWS is hereby notified of additional multiple material breaches of the contract, generally and specifically described as follows: - Failure to maintain the Effluent Pump Station, including but not limited to: having only 1 pump in operation; ~ Failure to maintain the SBR Basins, including but not limited to: maintenance and replacing of basin #1 limitorque actuator, maintenance and repair of all fine air diffusers, and maintenance and repair of SBR #2 blower; Failure to maintain the SBR Basins, including but not limited to: repair, maintenance, and installation of all DO, pH, and TSS meters as all sensors have been removed from the basins and are laving in the walkways} + Failure to maintain the Digester, including but not limited to: maintenance, cleaning, and repair of sludge due to septic conditions; Failure to maintain the Headworks/Mechanical Bar Screen, including but not limited to: maintenance and repair or mechanical bar screen being out of service, and maintenance and repair of influent auto-sampler which was found to be inoperable and in pieces; + Failure to maintain the Laboratory, including but not limited to: supply and record keeping of materials for testing and accurate testing records} + Failure to maintain the chemical dosing system, including but not limited to: maintenance and repair of the PAC Storage Tank which had approximately 2 feet of sludge built up in the tank, and maintenance and repair of the caustic feed system which is inoperable as it is broken and cracked in multiple places; Failure to maintain the Belt Press, including but not limited to: repair and maintenance of the belt press; - Failure to maintain the UV System; - Failure to maintain SCADA, including but not limited to: repair and maintenance of communication between plant components} + Failure to maintain Oxygenator, including but not limited to: repair and maintenance of oxygenator system as it was inoperable as installed; and + Failure to maintain BioAir Scrubber, including but not limited to: improper recordation of components, repair and maintenance of multiple missing life rings/flotation devices, and repair and maintenance of Well 1 motor that has exposed wires creating an extremely unsafe electrical hazard. Pursuant to the contract, in order for the City to determine if CWS's proposed curative steps are reasonable, please describe in detail the curative steps CWS plans to address each and every listed breach. Such description should include: A) Description of the breach, including the nature and scope of the breach; B) Explanation as to the basis and cause of the breach, including dates of when CWS has been previously notified of problems or issues have arisen regarding the breach;C) Explanation whether CWS believes there is a breach’ D) Explanation, with supporting documentation, of all current policies, procedures, standard operating procedures, or other such rules and regulations CWS currently has for itself or for employees regarding the specific topic of the breach; E) Explanation of new or proposed changes to current policies, procedures, standard operating procedures, or other such rules and regulations CWS believes is part of its reasonable steps to cure the breach; F) Timeline of implementation of curative steps; G) Timeline of breach and issues to be actually cured; and H) Any other description, explanation, documentation, or other material that CWS believes would assist the City in assessing wither CWS's proposed curative steps are reasonable, CWS remains suspended from performing its duties outlined in the contract. Please provide the required and requested information before the end of the initial 30 day cure period, so that the City may appropriately consider the reasonableness of all of the CWS's proposed cures at the same time. ‘Thank you for your time and attention to this matter. Respectfully, Steve Davis, MPA CPM — City Manager, City of Port Wentworth