Hi Terry — We're planning to issue this appointment release at 3 p.m. I’m not sure if Jordan sent you an FYI yet. If you
have changes let me know, otherwise we'll issue at 3.
Thanks much!
Jess
Gov. Rick Snyder appoints Joel Ferguson to Flint
Receivership Transition Advisory Board
LANSING, Mich. - Gov. Rick Snyder today announced the appointment of Joel Ferguson, of Lansing,
to the Flint Receivership Transition Advisory Board.
The board was first named in April 2015 after the city of Flint transitioned back to loca! control.
1
xxxEND_PAGE:treasury01_b39_6977_7316_141
"| thank Joel for his willingness to serve on this important board and am confident his collaboration
with local leaders will help ensure ongoing financial stability in the city of Flint," Snyder said.
Ferguson is president of Ferguson Development and F&S Development and is chairman of the
Michigan State University Board of Trustees. He served in the U.S. Marine Corps and earned a
bachelor’s degree in elementary education from Michigan State University. He will represent
members with relevant professional experience and replaces David McGhee.
Other members of the City of Flint RTAB include: Frederick Headen, representing the State
Treasurer, Mike Finney, representing members with relevant professional experience, and Michael
Townsend, representing members with relevant professional experience. Members serve at the
pleasure of the governor.
For more information about Public Act 436 of 2012, the Local Financial Stability and Choice Act, visit
the Local Government Fiscal Health page on the Department of Treasury's web site
at
HAA
Jessica M. Broww
Communications Representative
Executive Office of Michigan Governor Rick Snyder
O: 517-335-6397
M: 517-388-3873
Brownj53 @michigan.gov
xxxEND_PAGE:treasury01_b39_6977_7316_142
Pleyte, Beth (Treasury)
Gary—
In reading the full e-mail string you reference, it indicates that the issues raised by Mr. Busch were discussed on a call
between DEQ staff and Treasurer Dillon. In the final e-mail of the string, DEQ Director Wyant notes that “all indications
are that we (DEQ) are supportive of KWA and its cost benefits...”
| would also clarify that the “approval” signed by Treasurer Dillon in April of 2013 dealt only with the eventual transition
to KWA, from DWSD (see page 209 of 338 in documents posted today).
Terry
Terry,
As |’m sure you're aware, there was a massive email release today regarding Flint water. One email (attached) contains
an email chain between the DEQ and Dept. of Treasury. One of the emails, a March 26, 2013, message from Stephen
Busch shows that using the Flint River for an extended period of time could lead to possible microbial and disinfection
by-product concerns. The city, under an apparent order from the emergency manager, switched to the river for its
drinking water source while awaiting the KWA.
Subsequently, the city’s drinking water, following the switch to the river, was found to contain TTHM and suffer from
multiple microbial problems (and an alleged connection to Legionella), as warned by Busch.
| wanted to see if treasury would comment on if Mr. Busch’s concerns in 2013 were taken seriously (or discussed at all)
when the city’s switch occurred and if Treasury took these concerns into consideration when signing off on the EM’s
orders that allowed the city’s switch to the river?
1am hoping for a response ASAP for my story.
Thanks.
Gary Ridley | The Flint Journal-MLive Media Group | 810-280-9516 | gridley@mlive.com
xxxEND_PAGE:treasury01_b39_6977_7316_063
Lamphier, Wendy (Treasury)
AP ASSOCIATED PRESS
foe
David Eggert 215 S, Washington Square, Suite 170
State government reporter Lansing, Ml 48933
T 517-482-8011
M 517-899-2991
deggert@ap org
www.ap.org
xxxEND_PAGE:treasury01_b39_6977_7316_068
Robert, Carla M. (T. reasury)
Thanks for the Pontiac release.
I appreciate that the task force is still working, but I still don't understand why that prevents the state from
saying when the EM decided to go with the river option (unless that's not known). Kurtz was clearly moving to
do so in the June 28, 2013 report where he mentions the "high consideration" given to using the river and/or a
combo of the river and DWSD. What I'm looking for is something that says he definitively went with the river
option on June 30 or Aug. 4 or whatever -- if possible.
What I am clear on is that Gov. Snyder wasn't involved in the discussions about using the river, and that then-
Treasurer Dillon's OK wasn't required under the law. Dillon told me he vaguely recalls that Kurtz report but
said the river issue didn't hit his desk as he best he remembers. The question of whether Flint would part ways
with DWSD and go with KWA, on the other hand, was something Dillon said he was very much involved in, as
was the governor.
Ed Kurtz was EM in Flint in June of 2013. | cannot speak to any requests made to DEQ. As Dave noted earlier...the
timeline and transition is the subject of a study by the Governor’s Flint Water Task Force, which is expected to finalize a
report next month.
On your Pontiac question(s}, see the attached press release from Sept. 2011.
Mr. Schimmel was appointed given his extensive experience with the emergency manager law and the expectation that
he would work collaboratively with local officials to address the financial emergency there.
Mr. Stampfler is certainly entitled to his opinion. One of the primary intents of PA 436 (and PA 4 when it was in effect)
was to provide an emergency manager with the tools necessary to address a local government financial emergency as
quickly and efficiently as possible so to begin the transition to full local control...as soon as is prudent and possible.
There is no statutory requirement for orders to be sent to the state. They are posted on the local unit’s website and
should be there unless removed, etc.
in July 2013, Mr. Kurtz retired and was replaced by Mike Brown, who could serve as EM pursuant to PA 436. Mr, Earley
replaced Mr. Brown when he stepped down in October 2013. Please do not attribute the following to me: It’s my
understanding a member of Mr. Brown’s family had fallen ill and he left to spend time with that individual.
Mr. Earley then was named EM for DPS in January 2015 and Mr. Ambrose was appointed...with the expectation he
would likely conclude his work by spring. He then left in April 2015, after indicating to the governor that the financial
emergency had been adequately addressed.
Terry,
Can you give me a short (one or two sentence) explanation for why various Flint EMs left the position?
I know why Ed Kurtz took over for Michael Brown in August 2012.
But why did Michael Brown return as EM in July 2013 and why did Darnell Early become EM in October
2013? Put another way, why did Ed Kurtz leave and why did Michael Brown stop being EM the second time?
xxxEND_PAGE:treasury01_b39_6977_7316_011
When Darnell Earley left Flint, was that because he'd been named EM of the Detroit Public Schools?
And did Jerry Ambrose's tenure end in April 2015 because that's when the governor determined that Flint's
fiscal emergency ended?
Thanks,
Scott
Terry,
I can find no information related to this topic.
Eric Cline | Department Manager | State of Michigan
Michigan Department of Treasury { Local Government Financial Services Division | Fiscal Responsibility Section
430 W. Allegan Street, 3rd Floor | Lansing, MI 48922
Lansing Office (517) 335-2078 | Cell Phone (517) 243-8450 | Traverse City Office (231) 922-5228
E-mail cliner|@michigan.gov
CONFIDENTIALITY NOTICE: This e-mail, and any attachments, 1s for the sole use of the tended recipient(s) and may contain
information that 1s confidential and protected from disclosure under the law. Any unauthorized review, use, disclosure, or distribution
2s prohibited, If you are not the intended recipient, please contact the sender by reply e-maul, and delete/destroy all capies of the
original message and attachments Thank you.
Terry, can you please give me a call when you get a few minutes? I just left you a voice message and said I
think it'd be easier to talk by phone rather than over email. I want to better understand interactions between
EMs, the treasurer, Treasury Department and the governor.
My number is 443-955-9390. I expect to be free all afternoon. As I said in the message, if you can give me a
couple minutes’ heads-up that you'll be calling, I can make sure I'm available to take the call.
Thanks,
Scott
The year-long extension ended up costing the city more than $80,000 for the two of them. So, even if we separate them
and they individually don’t hit the $50,000 threshold, was there any requirement for Earley to sign a resolution or order
to make this extension? He did so for the original 9 month contract, but not for the 1-year extension. It just seems odd
that city money could be spent without any record on the city’s end.
Gary Ridley | The Flint Journal-MLive Media Group | 810-280-9516 | gridley@mlive.com
Gary...
It is my understanding that this issue wouldn’t have come to Treasury for approval. Under PA 436, only requested
purchases/contracts of over $50,000 need approval by Treasury, if they were not competitively bid.
The statutory provision is below:
141.1552 Additional actions by emergency manager; suspension of power of administrative officer and governing
body; contracts subject to competitive bidding; sale or transfer of public utility; limitation.
Sec. 12.
(3) Except as otherwise provided in this subsection, any contract involving a cumulative value of $50,000.00 or more is
subject to competitive bidding by an emergency manager. However, if a potential contract involves a cumulative value
of $50,000.00 or more, the emergency manager may submit the potential contract to the state treasurer for review and
the state treasurer may authorize that the potential contract is not subject to competitive bidding.
xxxEND_PAGE:treasury01_b38_6783_6976_190
Emergency managers serve at the pleasure of the Governor. There is no set “end date.”
xxxEND_PAGE:treasury01_b39_6977_7316_012
There is a provision in PA 436 that after serving 18 months, an individual EM can be removed by a vote of the
legislative body (w mayoral support if a strong mayor system). If it were to vote out an EM, the local! unit would then
have to negotiate a consent agreement with the state.
Under PA 436, the State pays EMs...though salary is determined on a case-by-case basis. Contracts are posted on the
following web-page:
0,4679,7-121-1751 51556 64472---,00.htm!