Correspondence between

Michelle, Thanks for the update. | understand EPA's position but what is left unaderessed by this decision is the fact that Genesee County realizes they will have to absorb the casts tentatively assigned to the city of Flint if the city dees not participate. If EPA feels the city isn’t committed ta this praject, then the total project casts or at least a much higher percentage of it should be assigned to Genesee County. The authority can’t construct just a portion of the project. They may be able te downsize some components but the resulting savings will not be proportional to the loss of the city’s contribution. Richard

Date: Wednesday, July 11, 2012 1:25:00 PM Michelle, Thanks for the update. | understand EPA’s position but what is left unaddressed by this decision is the fact that Genesee County realizes they will have to absorb the costs tentatively assigned to the city of Flint if the city does not participate. If EPA feels the city isn’t committed to this project, then the total project costs or at least a much higher percentage of it should be assigned to Genesee County. The authority can’t construct just a portion of the project. They may be able to downsize some components but the resulting savings will not be proportional to the loss of the city’s contribution. Richard

, Richarad- EPA has reviewed the documentation suomittad far the KWA project for the Genesee County and City of Hint water systems. They have come te the conclusion that Genesee should receive thelr committed share of S299M. However, their decision is that the City of Flint has not shawn cornmitment to the projects at this pcint, and therefore their survey should not reflect their potential share of the project. EPA’s rationale for their clecision is that it’s not their position to make decisions, or appear to be making endorsements, on projects when a clear decision has not yet been made at the local level. EPA’s decision doasn't change how the KWA project has bean addracsed in the Genesee County and City of Flint surveys. Genesee County will receive their share of the KWA project (8299M) and the KWA project will nat be added te the City of Flint survey. Thanks, Michelle Lee The Cadmus Group, Inc. 2620 Colonial Brive, Ste. A Helena, MT 59602 (406) 457-5225 xxxEND_PAGE:deq12_b208_0874_0874_1

Richard- EPA has reviewed the documentation submitted for the KWA project for the Genesee County and City of Flint water systems. They have come to the conclusion that Genesee should receive their committed share of $299M. However, their decision is that the City of Flint has not shown commitment to the projects at this point, and therefore their survey should not reflect their potential share of the project. EPA’s rationale for their decision is that it’s not their position to make decisions, or appear to be making endorsements, on projects when a clear decision has not yet been made at the local level. EPA’s decision doesn’t change how the KWA project has been addressed in the Genesee County and City of Flint surveys. Genesee County will receive their share of the KWA project ($299M) and the WA project will not be added to the City of Flint survey. Thanks, Michelle Lee The Cadmus Group, Inc. 2620 Colonial Drive, Ste. A Helena, MT 59601 406) 457-5225 michelle. [email protected] xxxEND_PAGE:deq01_b385_4222_4223_1 004223 xxxEND_PAGE:deq01_b385_4222_4223_2

Date: Wednesday, June 13, 2012 4:18:00 PM Below is Mike Prysby’s response to your question. As you can see, the county does not want their position to be publicly known at this time. | don’t know to what extent the county would “scale down” the project and I’m not sure they even know at this time because it is truly a last resort. Richard

Richard- We have decided to send the information for the KWA project to EPA for raview. Can you provide us with information regarding Genesee County's plans if the City of Flint doesn’t participate in the KWA project? Thanks, Michelle Lee The Cadmus Grou, free. 2620 Colonial Drive, Ste. A Helena, MT SS60L {400} 457-5225 michelle [email protected]

Richard We're going to have a group meeting tomerraw to discuss thase difficult projects like the KWA proadect. Vil fet you know what we decided after the rneeting. Michitle Lee The Cadmus Grour, fret, 2620 Colonial Drive, Ste. A Helena, MT 59601 {400} 457-5225 michelle [email protected]

Richard and Mike- xxxEND_PAGE:deq26_b058_0729_0731_2 We reviewed the letter from the City of Flint that you submitted to docurnent commitment by the City of Flint te participate in the KWA project. Based on the letter and the e-mail below, it appears that Flint is stil considering their options and are not cornmitted to the KWA project; therefore, we have not inchuded the KWA project in the City of Flint’s survey, Thanks, Michelle Lee The Cadmus Group, Inc. 2626 Colonial Grive, Ste. A Helena, MT 59607 {406} 457-5225 michelle [email protected]

Michelle, Michelle, if you are not willing to accept the city’s tentative cornmitment fis that an oxymeroan?) to KWA, will you adjust the percentages of this project that you assigned to Genesee County to reflect the fact that they will have to edsork the costs not being born by the city of Flint? There is no one else to pay the city’s share and the County has signed a contract to initiate this project with or without the city’s garticipation. {suspect the city wil end up participating in this project, but they may be using their current position for leverage in getting the Detroit Water & Sewerage Department to reconsider the current ban on blending water frorn other sources, ff they can achieve that goal, they could use 2 combination of DW5D treated water and raw water from the KWA that would allow thern to operate the Flint water treatrnent plant on a daily basis. Richard

Richard- l apologize for not getting back to you sooner, We can unlump the cost of the KWA project for the 2 systems If you can provide us with documentation of commitment by the City of Flint. The iast e-mail regarding Genesee County indicated the City of Flint was still unsure of buying into the KWA project and still working with the City of Detroit to purchase water. if you can get us additional documentation indicating commitment by the City of Flint by Tuesday (May 29%), we Can ununip this project. Thank You, Michelle Lee The Cadrnus Groun, Inc. 2626 Colonial Drive, Ste. A Helena, MT 59604 {406} AS7-5225

xxxEND_PAGE:deq12_b180_0750_0751_1 What happened to the decision to split or unlump the cost of the Karagnodi Water Authority to assign proportionate costs to Flint as well as Genesee County? | didn’t see a project on the Flint survey for this project. | guess | wasn’t clear how that was going to be resolved. xxxEND_PAGE:deq12_b180_0750_0751_2

Michelle, | was unaware that Flint did not include the Karengoodi Water Authority project in their original needs survey submittal. As suggested below, please unlump this project in order to assign refative costs to Flint and Genesee County and include a project on Flint’s survey for their share. | believe Mike Prysby is still trying to get an indication of ihe city’s commitment to participating in this project and at what percentage of the whole project. The representative of the Emergency Manager at the meeting | attended expressed his support for the city’s participation but indicated they were not quite ready to sign papers until a few more tees were crossed and eyes dotted. As | have stated previously, itis a political hot potato with Detroit not wanting to lose these customers and Flint currently operating under a state appointed Emergency Manager, but | think we may be able to get something to you by the end of the time for submitting modifications if not before data upload. Thanks. Richard

Date: Friday, April 27, 2012 3:36:00 PM Michelle, | was unaware that Flint did not include the Karengoodi Water Authority project in their original needs survey submittal. As suggested below, please unlump this project in order to assign relative costs to Flint and Genesee County and include a project on Flint’s survey for their share. | believe Mike Prysby is still trying to get an indication of the city’s commitment to participating in this project and at what percentage of the whole project. The representative of the Emergency Manager at the meeting | attended expressed his support for the city’s participation but indicated they were not quite ready to sign papers until a few more tees were crossed and eyes dotted. As | have stated previously, it is a political hot potato with Detroit not wanting to lose these customers and Flint currently operating under a state appointed Emergency Manager, but | think we may be able to get something to you by the end of the time for submitting modifications if not before data upload. Thanks. Richard