The repair shop indicates the faulty water pump is leaking into the distributor. Is this an accurate assessment.
Water pump replacement. on 1996 Pontiac Firebird
If you've got the V8 in that Formula you've got the Lt-1 5.7. engine. The distributor is located under/behind the waterpump, I changed my leaky waterpump Im sure some water got ON the distributor, IN IT, I dont believe so, the car ran great for over a year until the distributor(optispark) started to fail @ 80,000 plus miles. If your car is running great there is no need to replace that distributor at this time unless you want to shell out 500 plus dollars for a new gm part plus labor. Waterpump only, unless your car is running poorly. The first sign it is failing will be misfiring at all speeds and or popping from exhaust. Yes.. "brilliant engineering" another dumb "lets -bury -the most- important- part- of- the- ignition- system- so-it-is- a pain- to- get- to" move by gm. Despite this downfall they are great running cars.
This is common on these GM V8s. Sorry. Very expensive repair, because the design was not well thought out.