David Worthington

Rick & Jeff: Valorie shared with me the bad news that Flint is passing up funding from the DWRF this year. Before this decision becomes set in stone, my program chief would like to know if the city would be able and willing to break the 7310-01 project into a smaller piece (or pieces) to make it affordable and get the benefit of the maximum principal forgiveness we can manage. | forget what the cost estimates were, but, for example, maybe the city could still apply for Torrey Road BS pumps and/or the Cedar Street electrical upgrade (Il assume the 24-inch transmission main was the biggest and most costly piece, and might not be dividable into smaller parts — however, if it could be, please consider that, too). Please try to get audience with Michael Brown and see if this “dumbed down” proposal would be a debt commitment the city could swallow — we can always extend the deadline for the Part | application. We can do a conference call on this if it would help. Thanks! David J Worthington, Project Manager Department of Environmental Quality Resource Management Division Revolving Loan Section Phone: (517) 373-4728 Fax: (517) 335-0743 E-mail: xxxEND_PAGE:deq01_b128_3703_3703_1

Hiss 4/16/2012 xxxEND_PAGE:deq01_b033_1845_3570_0646 002491 ° ; & © Page 2 of 2 David, Jeff I have completed my review of the preliminary plans for the Flint DWRF project that includes the 16, 24, and 30- inch transmission mains, Torrey Road pump station improvements, and Cedar Street pump station electrical improvements. These projects are essentially a re-proposal of the projects submitted for review and approval in 2009. The majority of our comments were addressed in the 2009 proposal. The 2012 proposal has not changed much and our review did not reveal any major concerns or need for revision. There were few minor questions that I discussed with you that should be clarified and are listed below. 1. The 24-inch transmission main appears to show a parallel 24-inch main in Dupont St between Pasadena and Myrtle Ave, What is the purpose of the parallel main? 2. The final stretch of 30-inch transmission piping on Flint WTP grounds from approx. Sta 404 +50 to the pump house is not shown. We are assuming that this stretch of piping will be shown on the final plans. If you have any questions, please don’t hesitate to call or e-mail me. Michael Prysby, P.E. Acting District Supervisor Resource Management Division Department of Environmental Quality 517 335-6122 > 4/16/2012 xxxEND_PAGE:deq01_b033_1845_3570_0647 002492 ® ® CITY OF FLINT INFRASTRUCTURE AND DEVELOPMENT UTILITIES DIVISION Dayne Walling Michael K. Brown Howard Croft Mayor Financial Manager Director June 14, 2012 Michael Prysby, P.E. pads : DEQ District Engineer H MDEQ Recource Mgt Division RESOURCE MANAGEMENT DIVISION Lansing District Office JUN 18 2012 LANSING DISTRICT Dear Mr. Prysby RE: — City of Flint Water Distribution System Operator In Charge Pursuant to the letters you sent in August and December 2011, the City of Flint hereby notifies the DEQ that we have an assigned Operator in Charge (OIC) of our water distribution system. That individual is Robert Bincsik. He is certified at the S-1 level. His Operator ID is 13784. | have enclosed the Operator and Backup Operator Designation Form with the necessary information as we discussed. Should you need additional information, please call me at (810) 766-7165, extension 2602. Sincerely, - Daugherty Duty’ Johnson Ill Utilities Administrator Attachment XC: Howard Croft, Director, Infrastructure and Development Department CITY HALL §=1101 S SAGINAW STREET FLINT, MICHIGAN 48502 TEL; 810-766-7135 FAX. 810-766-7249 xxxEND_PAGE:deq01_b033_1845_3570_0648 002493 xxxEND_PAGE:deq01_b033_1845_3570_0649 002494 ht 23/0 » & CITY OF FLINT INFRASTRUCTURE AND DEVELOPMENT UTILITIES DIVISION Dayne Walling Michael K. Brown Howard Croft Mayor Financial Manager Director May 9, 2012 Michael Prysby, P.E. ESOURCE MANAGEMENT DIVISIN Michigan Department of Environmental Quality 525 W. Allegan Street ANOINGS DIETRIC P.O. Box 30242 LANSING DISTRICT Lansing, MI 48909-7742 MAY 1 4 2012 Dear Mr. Prysby: The Karegnondi Water Authority (KWA) has the potential to be a major factor in our region's economic development efforts. The City of Flint is pleased to be a partner in the process and we pledge to offer our assets to support the development. We appreciate your technical support as we develop our components of the project. Sincerely, — +} J — eo Howard Croft, Director Infrastructure and Development HC/DJ/dls xc: Daughtery Johnson, Utilities Administrator CITY HALL 1101S.SAGINAW STREET FLINT, MICHIGAN 48502 TEL: 810-766-7135 FAX: 810-766-7249 xxxEND_PAGE:deq01_b033_1845_3570_0650 002495 xxxEND_PAGE:deq01_b033_1845_3570_0651 2 1-.. met a = <a re STATE OF MICHIGAN => ~ a oe DEPARTMENT OF ENVIRONMENTAL QUALITY RA Cees LANSING RICK SNYDER DAN WYANT GOVERNOR DIRECTOR May 7, 2012 Mr. Howard Kroft, City Administrator WSSN: 2320 City of Flint 1101 South Saginaw Street Flint, Michigan 48502-1416 Dear Mr. Kroft: SUBJECT: Flint Water Treatment Plant — Future Operation This letter confirms our May 1, 2012, meeting with you, Mr. Daugherty Johnson Ili, Utilities Administrator, Mr. Brent Wright, Water Plant Superintendent, and other water utility operators. Mr. Patrick Cook, Treatment Specialist, from the Department of Environmental Quality (DEQ), also attended the meeting. The purpose of the meeting was to discuss options for blending treated water from the Flint River with water purchased from the Detroit Water and Sewerage Department (DWSD) or blending Flint River water with raw water purchased from the Karegnondi Water Authority (KWA) and subsequent treatment at the Flint Water Treatment Plant (WTP). The city of Flint may elect to utilize their WTP for the blending of treated water from the Flint River with water purchased from DWSD or KWA provided that all applicable drinking water standards are maintained. Also, the city is encouraged to produce and distribute treated water that is comparable to the aesthetic quality of water purchased

David, Jeff I have completed my review of the preliminary plans for the Flint DWRF project that includes the 16, 24, and 30- inch transmission mains, Torrey Road pump station improvements, and Cedar Street pump station electrical improvements. These projects are essentially a re-proposal of the projects submitted for review and approval in 2009, The majority of our comments were addressed in the 2009 proposal. The 2012 proposal has not changed much and our review did not reveal any major concerns or need for revision. There were few minor questions that I discussed with you that should be clarified and are listed below. |. The 24-inch transmission main appears to show a parallel 24-inch main in Dupont St between Pasadena and Myrtle Ave. What is the purpose of the parallel main? 2. The final stretch of 30-inch transmission piping on Flint WTP grounds from approx. Sta 404 +50 to the pump house is not shown. We are assuming that this stretch of piping will be shown on the final plans. If you have any questions, please don’t hesitate to call or e-mail me. Michael Prysby, P.E. Acting District Supervisor Resource Management Division Department of Environmental Quality 517 335-6122 = 4/12/2012 xxxEND_PAGE:deq01_b033_1845_3570_0645 002490 a ® Page | of 2 Prysby, Mike (DEQ) a a eee 34 oe

John or Matt, Just double-checking to see if you got this earlier note reprinted below. Do you foresee a concern about the LAFD etc. for Flint that would require extra early attention? Let me know if you have any questions, but please respond to me or Sonya if you can. If there might be a problem, perhaps it could be discussed at a future MFA/DEQ joint meeting? Thanks, David David J Worthington, Project Manager Department of Environmental Quality Resource Management Division Revolving Loan Section Phone: (517) 373-4728 Fax: (517) 335-0743 E-mail:

Hi John; Just a heads-up that another financially-strapped community, the city of Flint, is coming in with an application for a DWRF loan and “principal forgiveness” in the 4" quarter of 2012. Although my project schedule (see attached copy) with Flint does not require a Part | submittal until May 24, 2012, Wendy warned me that the city could need extra time to get LAFD approval and that they will need to be fully aware of the need for early submittal of a “long form” LAFD application as well as a budget “deficit reduction plan.” As you probably know, the governor appointed Michael K. Brown as the emergency financial manager for the city of Flint, and he is acting as the authorized representative for the DWRF loan project as well. Perhaps you know who the city’s bond attorney is and can alert him/her of the early deadlines for LAFD. What would you recommend we tell the city as far as anticipated deadlines for the “long form” and deficit reduction plans? I'll be happy to pass the word on for you once | know your expectations. We are trying really hard to get Flint to jump through all the right hoops and get this project off the ground with a big chunk of “forgiveness” as a bonus. 1 xxxEND_PAGE:treasury01_b03_0010_0378_042 Thanks! Note: the attached DWRF schedule is an unsigned draft copy, but Mr. Brown and DEQ have signed it and the dates have not changed. David J Worthington, Project Manager Department of Environmental Quality Resource Management Division Revolving Loan Section Phone: (517) 373-4728 Fax: (517) 335-0743 E-mail: worthingtond @michigai.gov xxxEND_PAGE:treasury01_b03_0010_0378_043 Pleyte, Beth (Treasury)

Jeff: In reply to your question for the city of Flint DWRF, below is the direct quote I got from Sonya Butler, our program chief: David Using the final PPL amounts, the GPR totals $13,022,000 in the fundable range. Half of the $13 million would be eligible for principal forgiveness ($6,511,000). Yet our GPR goal is $5,721,600. Our expectation is that Northville would be the project that would not receive 50% of their total GPR amount on the IUP. This leaves the remaining amount, $6,650,619, of principal forgiveness for Flint from the $13 million. This is my preference & the cleanest way to calculate how much Flint receives. Tf Flint wants to keep the same amount of work in FY¥12 & split it up in different quarters, we can keep with the above scenario & fund pieces of the work at 50%, If Flint reduces the amount of work they want to do, then the principal forgiveness amount may change. Keep in mind that ail PPL amounts are estimates so if the other fundable projects come in under bid, there's a potential that Flint could get more money. I hope this all makes sense, if not let me know. As you can see, it is complicated but the outlook for a subsidy in the neighborhood of 50% {or even more} principal forgiveness seems pretty good. Keep me in touch with how the city wants to proceed for a schedule (s) in FY 12. Thanks, David J Worthington, Project Manager Department of Exvironmental Quality Resource Management Division Revolving Loan Section (517) 373-4728: phone (317) 335-0743; fax 9/30/2011 xxxEND_PAGE:deq15_b131_0314_0316_3