Correspondence among

Follow Up Flag: Follow up Flag Status: Flagged Rick Hammel just called to find out if Flint will participate in this project. | think we owe it to the proponents to give them an answer. Concern | had/have was based on what the engineering firm Tucker Young told me, i.e., that all the costs were not put into the analysis that supported the project. | think we should ask Tucker Young to help us review the rationale and get one of our CPAs to crunch some numbers. | saw we recently hired TY and suspect they will do some preliminary analysis pro bono. Dennis, | understand Dept of AG may support this project so we may consider having them at the table as we work through this. Sent from my iPad xxxEND_PAGE:treasury01_b03_0010_0378_094 Lake Huron Water Supply Study Karegnondi Water Authority o City of Flint o Genesee County Appendix 20 October 2012 Preliminary Engineering Report Update Final Report October 4, 2012 42 ROWE PROFESSIONAL 1 SERVICES COMPANY 540 S. Saginaw Street Suite 200 P.O. Box 3748 Flint, Mi 48502 xxxEND_PAGE:treasury01_b03_0010_0378_095 Lake Huron Water Supply Study Appendix 20 — PER Update 20.1 Introduction The September 2009 Preliminary Engineering Report — Lake Huron Water Supply (2009 Study) compared alternatives for a new regional water supply. Since the 2009 Study, Genesee County and the City of Flint have continued planning and confirmed the capacities to be provided for each. This memorandum updates the capital costs for the proposed new water supply based on the confirmed capacities. 20.2 KWA Water Supply Ongoing planning has resulted in modifications to the preliminary design developed in the 2009 Study. This cost update is based on the modified preliminary design. For this update, the KWA water supply is assumed to include the following primary components: e Water Supply Intake e Lake Huron Pumping Station (LHPS) «* Transmission Mains (Segment 1, Segment 2, and Flint Segment) * Intermediate Pumping Station (IPS) It is assumed that the new KWA supply will deliver raw water to a new WTP constructed and operated by Genesee County in western Lapeer County and to the City of Flint’s existing WTP. Construction of the new GCDC-WWS WTP and needed upgrades to the Flint WTP will be the responsibility of each agency and these costs are not included in KWA costs. 20.3 Economics Costs are based on the following criteria: e Assume construction occurs in 2013 through 2015 « Assume construction is financed by 25 year bonds at a rate of 5% e Assume engineering, legal, administration, and contingencies are 25% of construction cost e Adjust construction costs to the current Engineering News-Record Construction Cost Index (ENR CCT) which in August 2012 had a value of 9351 Costs for pump stations and the intake have been updated based on the current design concepts. New material costs for pipe have been obtained from pipe suppliers. Pipe sizes and lengths are revised