Correspondence between

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

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

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