Frederick Feaden

Treasury

Also known as Frederick Headen

101

Emails

Sep 2012–Feb 2016

Archive range

101 emails found.

Flint Police and Fire Chiefs

To
Thomas Saxton , Larry Steckelberg
importance: High See below the link to a Flint Journal article about the firing of the Police and Fire chiefs. The last paragraph refers to an interim Police chief. If accurate, it may be advisable for us to remind the Mayor that per the terms of the RTAB resolution she cannot name even an interim replacement without first submitting to the RTAB the minimum professional or occupational qualifications and the minimum/maximum salary range for the vacated positions. h xxxEND_PAGE:treasury01_b39_6977_7316_069 Osborne, Ken (TREASURY)

RE: emergency managers

Not in my view. The school districts that have had EFMs/EMs (Detroit, Highland Park, Inkster, and Muskegon Heights) have not fared well. Inkster was dissolved and the other school districts have had multiple EMs. Prior to 2011, I would have said the reason was that Act 72 drew an artificial distinction between fiscal matters and instruction/academics and granted EFMs authority only over the former. However, under both Acts 4 and 436, EMs have had control over both fiscal matters and 1 xxxEND_PAGE:treasury01_b38_6783_6976_164 instruction/academics and it appears to have made little difference in regards to lack of long-term success. It may be that because school finances are tied so closely to enrollments, that once enrollments begin a downward spiral, even an EM cannot cut enough, or quickly enough, to keep up.

RE: emergency managers

Here are three possibilities: 1, Village of Three Oaks. The EFM was appointed on December 1, 2008 and exited after only one year. The EFM resolved all financial issues (including cash flow and accounts payable), while working cooperatively with local officials. Indeed, so positive was the working relationship between the EFM and Village officials that for a number of years after the EFM’s departure, Village officials invited her back for annual events. City of Detroit. The EM was appointed on March 25. 2013 and was succeeded by a FRC on December 9, 2014, after guiding the City through the largest municipal bankruptcy in U.S, history in only 18 months. In doing so, the EM addressed three primary issues: first, a cash crisis that was projected to reach a cumulative deficit in excess of $100.0 million by June 30, 2013; second, recurring general fund deficits (the City had not experienced a positive year-end fund balance since fiscal year 2004); and third, long-term liabilities, including unfunded actuarial accrued pension liabilities and other post-employment benefits, that exceeded approximately $14 billion as of June 30, 2012. City of Hamtramck. The EM was appointed on July 1, 2013 and was succeeded by an RTAB on December 18, 2014. The EM addressed general fund operating deficits. In addition, unfunded liabilities (pension and other post-employment benefits) posed significant obstacles to long-term fiscal health. Actuarial evaluation had indicated the pension plan had $98.4 million in actuarial accrued liabilities, but only $55.8 million in pension assets (i.e., a funding ratio of only 56.8 percent). Fred xxxEND_PAGE:treasury01_b38_6783_6976_165

FW: Water Related Civil Litigation.PDF

FYI: During this morning’s weekly Local Government conference call with Flint officials, the City Administrator mentioned this letter and then forwarded a copy of it. I believe she also indicated she or the Mayor had provided acopy to Rich. I had not previously seen it. Oddly. the letter makes no mention of the State Treasurer's January 4, 2016, letter stating that Treasury would reimburse the City 75 percent of Shears related legal expenses up to $300,000 incurred by the City.

Flint RTAB - Letter of Resignation

From
Beverly Walker-Griffea
Mr. Headen: The attached letter is notice of my immediate resignation from the Flint Receivership Transition Advisory Board. Dr. Beverly Walker-Griffea xxxEND_PAGE:treasury01_b38_6783_6976_052 Beverly Walker-Griffea, Ph.D. 1520 E. Second Street Flint, MI 48503 QE <1!) February 1, 2016 The Honorable Governor Rick Snyder P.O. Box 30013 Lansing, Michigan 48909 Dear Governor Snyder: Thank you for the opportunity to serve the Flint community as a member of the Receivership Transition Advisory Board (RTAB). It is with regret that ] am writing to inform you of my decision to resign from the Board effective immediately. After considerable thought, I have decided that my work commitments and obligations during this crucial period in Flint’s history are too great for me to be able to fulfill the requirements of my position on the RTAB. If I can be of any assistance or service in the future, please do not hesitate to contact me. Looking Forward, BK Wie ye Beverly Walker-Griffea, Ph.D. xxxEND_PAGE:treasury01_b38_6783_6976_053 Robert, Carla M. (T reasury)

Lawsuit re Flint

A couple reporters have asked for comment on a lawsuit filed this am against Nick and the Flint RTAB, the city of Flint and Natasha Henderson to comply with the safe drinking water act, including the replacement of lead service lines. After conferring with the Gov's office, they suggest the following: “We have not received or reviewed the lawsuit at this time and do not comment on current litigation. That said, the state's top priority is making sure the people of Flint immediately have access to safe, clean water, and that includes reaching every home to supply water, filters, replacement filter cartridges and water testing kits. The administration is also working with independent experts on testing of the water and will continue to work with them going forward." Want to be sure you are comfortable with this response. Please advise. xxxEND_PAGE:treasury01_b41_7622_7971_278 Schafer, Suzanne K. (Treasury)

Concerned Pastors for Sacial Action Litigation, 1-27-16

Importance: High Frank: Please find attached a copy of a complaint entitled Concerned Pastors for Social Action, Melissa Mays, ACLU, and Natural Resources Defense Council v State Treasurer, Flint RTAB, and Flint City Administrator. The case appears to have been filed this morning in United States District Court, Eastern District. I received a copy of the complaint by e-mail a short time ago. You will recall that plaintiffs served a Notice of Intent to Sue upon the defendants and your Office on November 16, 2015. In addition to the State Treasurer, Flint RTAB members, and City Administrator, the Notice of Intent to Sue also listed as defendants the Governor, now former DEQ Director Dan Wyant, and Flint Mayor Weaver. The latter three officials have been dropped from the filed complaint. Please consider this e-mail a request for legal representation for the State Treasurer and Flint RTAB members. Should you need further information or wish to discuss, let me know. Thanks. Fred xxxEND_PAGE:treasury01_b41_7622_7971_177 2:16-cv-10277-MAG-SDD Doc#1 Filed 01/27/16 Pgiof58 PgID1 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION CONCERNED PASTORS FOR SOCIAL ACTION; MELISSA MAYS; AMERICAN CIVIL LIBERTIES UNION OF MICHIGAN; and NATURAL RESOURCES DEFENSE COUNCIL, INC., Plaintiffs, v. Case No. 16-10277 NICK A. KHOURI, in his official Hon. capacity as Secretary of Treasury of the State of Michigan; FREDERICK HEADEN, in his official capacity as Chairperson of the Flint Receivership Transition Advisory Board; MICHAEL A. TOWNSEND, in his official capacity as Member of the Flint Receivership Transition Advisory Board; DAVID MCGHEE, in his official capacity as Member of the Flint Receivership Transition Advisory Board; MICHAEL A. FINNEY, in his official capacity as Member of the Flint Receivership Transition Advisory Board; BEVERLY WALKER-GRIFFEA, in her official capacity as Member of the Flint Receivership Transition Advisory Board; NATASHA HENDERSON, in her official capacity as City Administrator; and CITY OF FLINT, Defendants. / xxxEND_PAGE:treasury01_b41_7622_7971_178 2:16-cv-10277-MAG-SDD Doc#1 Filed 01/27/16 Pg2of58 PgID2 COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF INTRODUCTION 1. The water in Flint, Michigan is not safe to drink. It has not been safe to drink since April 2014, when city and state officials began using the Flint River as a source of drinking water and caused lead to leach into the city’s water supply. 2. This case is about the government's failure to comply with the federal law that requires cities to deliver safe drinking water to the public. The Safe Drinking Water Act directs officials who operate water systems to test drinking water for harmful contaminants and to treat the water to control for those contaminants. City and state officials’ complete disregard for those requirements is exposing the people of Flint to lead, a powerful toxin that is devastating to the human body. 3. Flint was once a prosperous city with a strong economy built around the automotive industry. But the closing and relocation of automotive plants over the past thirty years hurt the city’s economy and tax base, contributing to a shrinking population and resulting in increased unemployment, poverty, and crime. Flint is now a struggling city. More than forty percent of Flint residents live below the poverty level, and more 1 xxxEND_PAGE:treasury01_b41_7622_7971_179 2:16-cv-10277-MAG-SDD Doc#1 Filed 01/27/16 Pg3o0f58 PgID3 than a quarter of its working-age residents are unemployed. 4. In November 2011, in response to Flint’s budget deficit and mounting debt, Michigan Governor Rick Snyder declared a financial emergency in the city. He stripped local elected officials of all of their authority and installed a state-appointed Emergency Manager to take over and run the city’s operations. The Emergency Manager was not removable by Flint voters or otherwise accountable to the Flint electorate. 5. Tosave the city money, the Emergency Manager and other state officials decided to switch the city’s drinking water source from Lake Huron to the Flint River. The Flint River has long been known to residents as a contaminated dumping ground for nearby industries. In making this switch, city and state officials sent Flint River water flowing into the homes, schools, and churches in Flint without following federal requirements for treating and testing drinking water for lead. 6. These decisions have endangered the health of Flint’s residents. When run through the city’s aging metallic pipes, the corrosive Flint River water ate away at those pipes, causing lead to leach into drinking water. The people of Flint have been exposed and are still being exposed to high levels of lead in their water. In the past two years, the percentage of Flint 2 xxxEND_PAGE:treasury01_b41_7622_7971_180 2:16-cv-10277-MAG-SDD Doc#i Filed 01/27/16 Pg 4o0f58 PgID4 children with elevated levels of lead in their blood has doubled and in some areas has nearly tripled. 7. Flint residents began raising concerns about the safety of their drinking water nearly two years ago. Government officials dismissed their concerns and insisted that the water was safe to drink. State officials even disregarded researchers’ findings that the water contained dangerously high levels of lead. Not until a national spotlight was focused on Flint did city and state officials belatedly acknowledge a problem. 8. Despite this far-too-late acknowledgement, the problems in Flint have not been fixed. Public trust has been eroded by government officials’ efforts to evade responsibility in this crisis. The damage done to city pipes from the Flint River water means that lead will continue to contaminate Flint’s drinking water. This contamination poses an ongoing health risk to the city’s residents, especially young children, who are most vulnerable to the effects of lead. 9. The harms suffered by Flint residents will not be addressed until city and state officials properly treat Flint’s water to control lead, properly test the water for lead contamination, promptly notify residents of testing results, and report their activities to state regulators, all as required 3 xxxEND_PAGE:treasury01_b41_7622_7971_181 2:16-cv-10277-MAG-SDD Doc#1 Filed 01/27/16 Pg5o0f58 PgID5 by the Safe Drinking Water Act. 10. Plaintiffs are individuals and citizens’ groups whose members live in homes served by Flint’s water system. They bring this suit as citizens to ensure that the water provided to their homes will no longer threaten their health, and to address the medical and health harms they have suffered. JURISDICTION AND VENUE 11. This Court has subject matter jurisdiction over this action pursuant to the Safe Drinking Water Act, 42 U.S.C. § 300j-8(a), and the federal-question jurisdiction statute, 28 U.S.C. § 1331. The Court may award Plaintiffs all necessary injunctive relief pursuant to the Safe Drinking Water Act, 42 U.S.C. § 300j-8(a), (e), and declaratory relief pursuant to the Declaratory Judgment Act, 28 U.S.C. §§ 2201-2202. 12. Venue is proper in this district under 28 U.S.C. § 1391(b)(2) because a substantial part of the events or omissions giving rise to Plaintiffs’ claims occurred in this judicial district, in Flint, Michigan. 13. Plaintiffs have provided Defendants, the Administrator of the US. Environmental Protection Agency (EPA), and the Michigan Attorney General with at least sixty days’ written notice of the violations of law 4 xxxEND_PAGE:treasury01_b41_7622_7971_182 2:16-cv-10277-MAG-SDD Doc#1 Filed 01/27/16 Pg6Gof58 PgID6 alleged here in the form and manner required by the Safe Drinking Water Act. 42 U.S.C. § 300j-8(b); 40 C.F.R. §§ 135.11-.13. A copy of Plaintiffs’ November 16, 2015 notice letter is attached as Exhibit A to this Complaint. THE PARTIES 14. Plaintiffs consist of organizational plaintiffs Concerned Pastors for Social Action (Concerned Pastors), American Civil Liberties Union of Michigan (ACLU-MI), and Natural Resources Defense Council, Inc. (NRDC), and individual plaintiff Melissa Mays. 15. Concerned Pastors is a nonprofit association of religious leaders and congregations from more than thirty predominantly African American churches and ministries in the City of Flint (City) and its surrounding communities. The association was founded nearly fifty years ago to protect the rights of the underserved and improve the lives of the people of Flint. Concerned Pastors has been organizing and advocating for safe drinking water in Flint for nearly two years. Its efforts include holding public rallies and meetings, liaising with state and local elected officials, and distributing thousands of cases of bottled water and water filters to community members. Concerned Pastors is committed to protecting the health of Flint’s children and families from the City’s contaminated drinking water. 5 xxxEND_PAGE:treasury01_b41_7622_7971_183 2:16-cv-10277-MAG-SDD Doc#1 Filed 01/27/16 Pg7of58 PgID7 Concerned Pastors is organized under the laws of Michigan and has an office address of 2200 Forest Hill, Flint, Michigan 48504. 16. Plaintiff ACLU-MI is a nonprofit organization founded in 1959. ACLU-MI's mission is to protect the freedoms and rights of all Michigan citizens. Through public education, advocacy, organizing, and litigation, ACLU-MI works to guarantee the benefits of our nation’s laws to everyone. ACLU-MI played a significant role in investigating the water problems in Flint while the City was under emergency management and exposing the lead contamination in its drinking water. ACLU-MI has approximately 9,000 members, more than ninety-five of whom live in Flint. ACLU-MI is incorporated under the laws of Michigan and has an office address of 2966 Woodward Avenue, Detroit, Michigan 48201. 17. Plaintiff NRDC is an international, nonprofit environmental organization. NRDC engages in research, advocacy, and litigation to protect public health and reduce the exposure of all communities to toxic substances. NRDC’s work includes advocacy aimed at ensuring that all Americans have access to safe and affordable drinking water that is free

Re: State of the State-Flint Question

To
Unknown recipient
I just got a call from the Governor’s Legal Division indicating they thought Tom, or perhaps someone in Local Government, had, or was working on, a timeline of EM actions in Flint, specifically related to the decision to switch to KWA, leave DWSD, etc. They want this for the State of the State. Does anyone recall this? xxxEND_PAGE:treasury01_b40_7317_7621_176 Workman, Wayne (TREASURY)

RE: Update on Shears v City of Flint, 1-6-16

To
Unknown recipient
The biggest change is the refund time frame: nine months instead of roughly 48 months. However, | caution that the $3.0 million amount also is an estimate. We should have a better idea once the Circuit Court issues final orders and that has not yet happened. Sent from my iPhone xxxEND_PAGE:treasury01_b40_7317_7621_104

RE: Update on Shears v City of Flint, 1-6-16

To
Unknown recipient
Chris Trebilcock of Miller Canfield thinks the number is $3.0 million. However, he indicated that he keeps requesting info from the City, but has yet to receive it. The other thing to bear in mind is that the $30.0 million estimate, to the extent it was ever accurate, assumed refunds from September 2011 to roughly September 2015. We now are talking about a refund period of only nine months. Sent from my iPhone On Jan 6, 2016, at 6:18 PM, Khouri, Nick (TREASURY)

RE: State Treasurer’s Flint Letter

Only U.S. mail at this point. But, I will e-mail a copy this afternoon to the Mayor and City Administrator. On a related topic, I need to loop in Harvey on the proposed RTAB letter to Flint residents. Everyone (i.e., you, Wayne, Dave Murray) has signed off on the letter, but it was drafted before the Governor named Harvey as the point person for Flint issues.

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