Nancy Duncan

Nancy, As a follow-up to my voicemail, | am attaching additional information related to the funding request that Director Wyant spoke to John about. The request includes $3.9 million of one-time funding to keep Flint on the Great Lakes Water Authority system until December 2016. The request also includes $3 million of ongoing funding for additional expertise, sampling, and testing. Please let me know if you have any questions. Thanks, Amy Epkey, Deputy Director of Administration Michigan Department of Environmental Quality Phone: (517) 284-5002 xxxEND_PAGE:deq18_b535_3715_3715_1

altace a ia eaten Thanks Rick xxxEND_PAGE:executiveofficeemails20_b0272_1064_1064_1

1 know you've had enough email traffic on this, but for what it’s worth, Daddow thinks the number will be lower as a result of GM removing themselves from the system.

In follow-up to our meeting this morning, I’ve attached a spreadsheet outlining the Administration’s recommendation for addressing the Flint water situation. A formal supplemental revision will be forthcoming (hopefully later today). Nancy Puncan Deputy State Budget Director 517-373-0870 xxxEND_PAGE:executiveofficeemails21_b0269_0572_0572_1

Don’t disagree but we’re too far along now to change numbers. So, we'll use the $12M and as the year progresses we'll track it.

| agree with Dennis... Consistent with what I think we (Wayne & |) said at the DEQ meeting yesterday... the county drain commission has more knowledge & experience running a water system than we (Treasury) do. That is why we were trying to get some outside verification. We were not able to get an outside engineering firm engaged due to the timeframe. Our fallback was Jeff Wright - the drain commissioner. He calculated $13.2mm. We did a ‘back of the envelope’ analysis of $10.5mm late last week. That was based off an email we rec’d from Dennis that summarized the DWSD/City proposal. We were not a part of the $12mm calculation that is in the ‘public’ realm now. | believe that was a result of a meeting DEQ/Dan had with the City earlier this week. John indicated yesterday he would recommend/prefer to err on the side of caution for the amount requested from the legislature. Plus, keep in mind whatever number you choose assumes completion of KWA in June. If the project slips a month (& it very well could given it is a major capital project) the cost of the reconnect is going to go up a $1mm+ per month. If it is possible | would recommend using the $13.2mm (hoping the project will be done as scheduled) given the county is in the best position to make that estimate. We don’t have any info that would contradict that number.

| would say we need to add the $1.2 difference from somewhere. | suggest we hold on to the idea of the bottle deposit escrow as we can easily take $1m droit if need t. Sent from my iPhone

Sooke with Daddow this morning. He thinks the Larnm per month is a good number. Hf anything it could be a little lass because General Motors pulled out af the system.

1 xxxEND_PAGE:treasury01_b35_5648_6098_119 We're still carrying $12m as the cost to reconnect, and that’s the number the Governor is using too. John would like your assessment of the need given the information in this letter. We plan to send a supplemental request to the Legislature for our $6m share this afternoon.

Keeping you in the loop.

‘y>, "Fosdick, David (DTMB)" rey 2y>, "Weiss, Kurt (DTMB)" ater Summary for Governor The DHHS number changed slightly from $600k to $850k, bringing the total commitment $10.6m gross/$8.2m GF. Revised chart attached. 2k RR RR KR RK RK RRR a a ak a a ica koa akc ae ak akc a ak akc ak akc Original message: Attached is a summary of the funding commitments to address the Flint Water situation. The total state commitment is $10.4m; $7.9m of that amount is GF/GP. [The DHHS number needs to be verified tomorrow morning, but the final number should be close to this estimate.] The funding will address 4 priority areas: 1. Provision of filters for residential service; 2. 50% of the estimated cost to reconnect temporarily to the Detroit Water System; 3. Funding for testing water samples; and 4. Other state assistance (e.g., home/school/health facility inspections and follow-up for children with elevated blood levels). We are preparing a formal supplemental request to transmit to the Legislature tomorrow. John intends to talk with Rep. Pscholka and Sen. Hildenbrand about including this funding in HB 4102, the pending 1 xxxEND_PAGE:deq19_b02_0037_0259_095 supplemental bill now awaiting House concurrence. Assuming that they agree, we would ask for final action next week. Please let me know if you have any questions or concerns about our planned approach. Nancy xxxEND_PAGE:deq19_b02_0037_0259_096 City of Flint Water - Funding Solution State of Michigan Commitment EQ State Restricted Settlement Funds provided to HHS Emergency $1,000,000 einen ervices local office (FY16 appropriation). $2,016,000 — ° eee connection costs ~$1.3m/month x 9 mos. to be shared by state $6,000,000 EQ State Restricted Settlement Fund of $1m; balance GF/GP upport for plumbing inspectors to do schools (public and parochial) and Ith facilities (hospitals, Long Term Care, etc.). ufficient spending authority already exists lome and school inspections. 8:38 AM 10/8/2015 PRELIMINARY DRAFT xxxEND_PAGE:deq19_b02_0037_0259_097

The DHHS number (for follow-up on children with elevated blood levels} increased slightly from S00k to S&50k, bringing the total state commitment to SLG.Grn gross/S8.2m GFE. Revised chart attached,

Importance: High Attached is a summary of the funding commitments to address the Flint Water situation. The total state commitment is $10.4m; $7.9m of that amount is GF/GP. [The DHHS number needs to be verified tomorrow morning, but the final number should be close to this estimate.] The funding will address 4 priority areas: 1. Provision of filters for residential service; 2. 50% of the estimated cost to reconnect temporarily to the Detroit Water System; 3. Funding for testing water samples; and 4. Other state assistance (e.g., home/school/health facility inspections and follow-up for children with elevated blood levels). We are preparing a formal supplemental request to transmit to the Legislature tomorrow. John intends to talk with Rep. Pscholka and Sen. Hildenbrand about including this funding in HB 4102, the pending supplemental bill now awaiting House concurrence. Assuming that they agree, we would ask for final action next week. Please let me know if you have any questions or concerns about our planned approach. Nancy xxxEND_PAGE:executiveofficeemails19_b176_417_417_1

Importance: High Latest version of the Flint water issue. This is still a draft. Let me know if | have not accurately reflected your comments. NOTE: | have mac no aciustments for Tam Saxton’s latest e-mail on potential re-conmmerct costs. Assuming concurrence by the Governor, we are planning to transmit a formal supplemental raquest tornorrow. Mac DOULA. Denuty State Budget Director §47-2373-0870 xxxEND_PAGE:deq18_b352_3230_3230_1

I'm confused by this spreadsheet. At this morning’s meeting the supplemental (apart from the filters) discussed was for $6m to reconnect plus $1.5m for 10 FTEs, 8 of which | understood to be in MDHHS for nurse case managers and lead abatement investigators. This spreadsheet seems to be $1.5m short of this morning’s conversation. | don’t have a funding source for the positions in FY 2016. If we’re absorbing within existing resources lll need a GF transfer and work project to capture FY ’15 lapse.

Timothy (DHHS); Lyon, Nick (DHHS); Zimmer, Mike (LARA); Muchmore, Dennis (GOV); Hanley, Farah (DHHS); McNeely, Jacques (DTMB); Harkins, Chris (DTMB); Fosdick, David (DTMB); Kimmith, Dean (DTMB); Shoemaker, Lisa (DTMB); Harrison, Jennifer (DTMB); Roberts, John (DTMB); Starr, Scott (DTMB); Peruchietti, Cindy (Treasury); Epkey, Amy (DEQ)

(DTMB) <meneelyi@ <Fosdi za zoy>; Harrison, Jennifer (DTMB) <harris Starr, Scott (DTMB) <Starr3: ig; ‘>; Peruchietti, Cindy (Treasury) higan.gov>

(DTMB) <[email protected]>; Harkins, Chris (DTMB) Fosdick, David (DTMB) <[email protected]>; Kimmith, Dean (DTMB) <[email protected]>; Shoemaker, Lisa (DTMB) Harrison, Jennifer (DTMB) Roberts, John (DTMB) Starr, Scott (DTMB) <[email protected]>; Peruchietti, Cindy (Treasury) Epkey, Amy (DEQ) <[email protected]>