Eric Pocan

Natasha, | have been informed that the City of Flint is planning on submitting a Drinking Water Revolving Fund Project Plan by May 1, 2016 for ranking on the fiscal year 2017 project priority list. | will be the project manager for Flint and just wanted to provide you with an estimated timeline to prepare a project plan for submittal. The following is an estimated timeline that should be followed to have a plan ready by the May 1°* deadline date: February 1, 2016- Submit a draft project plan to the MDEQ for comments (Please see our Project Plan Preparation guidance on what information should be included in a project plan) March 1, 2016- Incorporate MDEQ comments into the draft project plan arch 9, 2016- Provide a mandatory 30-day notice for the public hearing and have the draft project plan available for the public to view April 9, 2016-Incorporate public comments into draft project plan prior to the public hearing. Make final project plan available to the public prior to the public hearing April 11, 2016- Hold public hearing on project plan. (The hearing can take place after 30 days of notice. If the hearing is held on the 30 day the plan will be rejected) April 25, 2016- Resolution of Project Plan Adoption (This can also be done on the same day as the hearing but the resolution should be voted on only after the project presentation and comments

Eric, Thank you for the quick follow up, I am including our Finance Director and Utility Administrator into the conversation so that we are all on the same page moving forward. The legal department has the draft resolution that you sent earlier and I intend to have it ready for you by the end of the month.

Howard, I just wanted to follow up our phone call this morning with an email summarizing our conversation. The city of Flint is eligible for a SAW grant totaling 2 million dollars and a local match is not required as a result of Flint’s disadvantaged status. However we wanted to make sure the city understands that a funding structure will need to be in place to implement the Wastewater Asset Management Plan. The following language was included in the SAW grant application: “SAW grant recipients for wastewater system asset management plans are required to make significant progress on the funding structure. Significant progress is defined as a 5-year plan to eliminate the (funding) gap with a minimum initial rate increase to close at least 10 percent of the funding gap. The first increase must be implemented within three years of the executed grant.” As a result of this language the city would need to submit a copy of their rate methodology within 2 4 years of the executed grant. If this requirement is not met the city would need to repay the grant with interest calculated from the date Grant funds were first drawn at a rate not to exceed 8 percent per year. If you have any additional questions feel free to contact me. Eric Pocan, Project Manager Department of Environmental Quality Office of Drinking Water and Municipal Assistance Revolving Loan Section 517-284-5416 Office xxxEND_PAGE:deq04_b133_3314_3315_1 Howard Croft Public Works Director City of Flint 1101 S. Saginaw Street Flint, MI 48502 PH# 810.766.7135 Ext.2043 [email protected] xxxEND_PAGE:deq04_b133_3314_3315_2