Hello all,
Here are the call notes from this week’s conversation with Flint.
Flint Weekly Call
12/23/15
Present:
E. Cline
P. Dostine
A. Heimann
R. Byrne
Mayor Weaver
Councilor Nelson
Not present:
F. Headen
W., Lamphier
N. Henderson
Water Update:
Mayor Weaver had a meeting with the EPA who suggested that “everything was going well” in regards to
treating the water.
Mayor has not received any calls from citizens complaining about cloudy/foul tasting water to date
People are bringing their water in to be tested for lead per the EPA’s request
Water billing injunction:
City received a favorable ruling on newest injunction, will allow the City to start shutting off water to residents
for non-payment starting in January.
Mayor Weaver suggested that there is significant confusion from residents and that many people think that the
courts ruled that they did not have to pay their bills at all. She suggested that the City needs to do a significant
public awareness campaign to notify people that they have to start paying their bills.
Mayor needs to develop a strategy for public outreach, some conversation was had about press releases,
postings on the City’s website and Public Service messages on the radio/Local Television.
DPW Executive Search
No significant updates about the Executive Search. Weaver has not had a chance to call Tom Adams, and may
get in touch with Joyce Parker from the MML in the meantime as well
There will be no call next week on 12/30
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Weekly Conference Call Notes — Dec. 28, 2015
Allen Park —Dec. 18 —Mayor Matakas, M. Kibby, B. Cady, E. Cline, P Dostine
Position & Classification Study ~ Study is progressing. Development of comparable
data is underway. Draft presentation is targeted for February 2016.
City Hall Flooding Insurance Issue — Discussion with Time Equities has not gone well.
The City noted that they are not easy to deal with and that Mr. Reeiiy threatened to sue
the City unless another payment of $200K was made. MML is to respond on this issue.
Weekly Calls — Calls on December 25 and January 1 will be cancelled.
January RTAB — Discussion of a possible movement of the RTAB meeting to the week
of January 11. M. Kibby stated that the City has a conflicting Pension Board meeting on
the 13 at I p.m.
Other Issues — 1) Audit is nearing finalization. City Council approval is pending. 2)
Mediation on the health care issue for the Gaydos case has been resolved. 3) Annual
Disclosure Training for staff has been completed. 4) 5 of 7 City Council members have
been enrolled for MML training.
fe) anny wishes to get guidance on Order 55-a regarding the sale of City Hall.
The City has not sent out proposals, as required by the EM Order but they
have received an unsolicited offer for the front 2.5 acres. The offer is for
$800K.
= The City’s appraisal was $250K for this piece of the property.
= The City wishes to know if they have authority to Counter Offer or must
they strictly follow the EM Order. The City wants to counter that the
buyer must remove the old City Hall.
= Eric indicated that he would follow-up on this issue.
o The Mayor inquired if there were any specific Orders that prohibited him from
delivering a State of the City Address.
He stated that Joyce prohibited him from doing so.
= Eric stated that he was not aware of any Order on-point but that the City
should consider how it wished to proceed.
= Eric also stated that if he became aware of any orders on this issue, he
would inform the City.
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Benton Harbor —Dec. 3 — D. Watson, R. Widigan, D. Hudson
e Weekly Priorities:
o CVTRS has been submitted to Treasury
o Audit: finishing up the comment portion, will present to Commission on the 14 of
December, if everything is finalized.
« fit is finished in time it will be presented to the RTAB in December.
co Two individuals have graduated from the police academy and have started
working.
o City has hired an additional three public safety officers, close to full staffing
levels in FD and PD
© Union Park improvements should be completed this spring
e Lawsuits: O'Brien, Unruh, and Lange
co Insurance carrier is looking for a commitment from the City of $300K —
settlement was last discussed at $1.7M.
© Looking to settle with Lange, he is looking for $595K, attormney’s think it’s only
worth $300-$400K.
© Worst case scenario is it goes to court, policy coverage limits will kick in.
© Will likely have another
e Federal Building:
© The deed to the building was transferred to the City in 2000, but the deed wasn’t
recorded.
o Tony’s final order states that the city shall Take any steps necessary, subject to
Board approval, to support and facilitate
©. the disposal of the Benton Harbor Federal Building property [Tax Parcel
Numbers 11-54-0340-0060-00-3 11-54-0340-0059-00-5, 155 Sixth Street and 109
Park Street, Benton Harbor, M7].
® Order 14-27, signed by Tony Saunders, issued an agreement for sale of
real estate with Prairie Real Estate.
" Does Darwin have to go back to the Commission to approve a sale that
was already approved by EM Saunders.
e Update on Vacant Positions:
o Finance Director: MML search was approved, needs RTAB approval.
o Water Department Superintendent: Still being advertised on the AWWA, MI
Rule Water, and City’s website.
o Assistant City Manager/Community Development Director: Darwin is
currently filling this roll.
= The City will likely use MML for this search.
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= Darwin has talked with Cornerstone Alliance and the Chamber of
Commerce.
© Assessor 1s on board, has been at city hall every day of the week, even though
he’s just part time (two days a week).
= City will likely not pass the AMAR (Audit of Minimum Assessing
Requirements) — will have to identify way to fix the situation.
« HUD pay back for an ineligible costs: Potential pay back of $60K.
o HUD will reduce future money to pack back $60K, likely over 5 years.
o HUD wants the city to work on doing more home repair, city doesn’t have the
funding in that allocation.
e City Manager Evaluation Discussion: No word.
* Commissioner Muhammad: will have to resign his seat when he takes the Mayor’s seat.
o He has set up a meeting with Darwin the week of Christmas.
© Priorities:
o Council will receive and file the audit tonight —- shows a decrease in fund balance,
had to “book liabilities for lawsuits and pensions”
« Ended with an overall debt of $34K
o Council will be approving a $1.9M payment on the E-Loan
" City would like a DEP schedule
o 47% cash fund balance — the restriction on the U.S. Steel payment has ended.
= However, this will drop after the $1.9M payment for debt service
o 5-year budget is being reviewed by treasury
« Wayne said to fund police and fire it is coming from PA 33 assessment
= Wayne said if the arc payment goes up, the city has a judgment levy
(Order) against it, the city can then levy it.
e Drew said that the city attorney needs to review the Order before
the next RTAB meeting.
e Wayne said he will read it and talk to the attorney about it
o City will do training every two months with employees ~ will have an employee
book everyone will sign.
o Wayne will be meeting with city council on an individual basis to discuss where
he would like to head in regards to city attomey and DPW.
= Wayne thinks he can bring a full time attorney on board for current cost or
less.
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SEV. Assessments:
o Decrease of 10% on residential tax base
= Roughly $250K.
Miscellaneous: Wayne stated the City is headed in the right direction, needs to do
various capital improvement projects, etc...
Flint — Dec. 23 — Mayor Weaver, Council President Nelson, R. Byrne, P. Dostine, E. Cline, A.
Heimann
Water Update:
Mayor Weaver had a meeting with the EPA who suggested that “everything was going
well” in regards to treating the water.
Mayor has not received any calls from citizens complaining about cloudy/foul tasting
water to date
People are bringing their water in to be tested for lead per the EPA’s request
Water billing injunction:
City received a favorable ruling on newest injunction, will allow the City to start shutting
off water to residents for non-payment starting in January.
Mayor Weaver suggested that there is significant confusion from residents and that many
people think that the courts ruled that they did not have to pay their bills at all. She
suggested that the City needs to do a significant public awareness campaign to notify
people that they have to start paying their bills.
Mayor needs to develop a strategy for public outreach, some conversation was had about
press releases, postings on the City’s website and Public Service messages on the
tadio/Local Television.
DPW Executive Search
No significant updates about the Executive Search. Weaver has not had a chance to call
Tom Adams, and may get in touch with Joyce Parker from the MML in the meantime as
well
There will be no call next week on 12/30
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Hamtramck — Dec. 17 — K. Powell, P. Dostine, D. Hudson
Miscellaneous
Evaluation of Katrina. Council went into closed session Dec. 15 to discussed Katrina’s
evaluation. She received high scores from the Mayor, Karpinski and Ian gave Katrina
high scores. Hassan, Miah, Musa and Zwolak gave low scores. The Mayor is compiling
the scores and will present the outcome to Katrina and the council in the near future.
Katrina said the closed session turned into a shouting match.
Human Resources
BS&A. A company came in for $2,100 to clean up files and train staff in BS&A. Finance
dept person — “Gia” -- received BS&A training to start doing payroll electronically rather
than paper and pencil. Katrina said first payroll under new system went out without a
“glitch”.
e Katrina still looking for HR director.
CPI
e Hamtramck is cancelling CPI’s contract. It will be on the Dec. 22 RTAB. The city wants
a list of temporary vendors approved while an RFP is put together to replace CPI.
*15 Budget
Audit discovered Detroit owes $500K to Hamtramck. Hamtramck must book Detroit’s
payment in FY °16, therefore Hamtramck’s FY °15 GF fund balance will drop from $1M
to $500K.
Katrina expects the audit to be completed 2" week in January.
Police overtime
This month police overtime is up $7K over last month. Katrina sent all the officers, at one
time, to get recertified on the gun range. Which hiked overtime.
Election fraud
No update.
Highland Park— Oct, 14—C. Square, R. Byrne
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The collection firm has approximately $7M in past due accounts to collect. However,
many of these accounts are no longer active.
Meadowbrook will be providing an updated report on OPEB costs which show a
substantial reduction of the annual costs. The new estimated annual costs will be
between $200K and $300K.
New water bills with the new water and sewer rates have been sent out to the customers.
Wade-Trim has opened its customer service center on Woodward Avenue.
BSA software installation has been completed.
The City will be submitting several FDCVT grant applications including master water
meters, LED streetlights, and building improvements.
Wade-Trim has received several shipments of residential water meters that will be
installed soon.
Inkster —- Nov. 19 — M. Stuhldreher, R. Byrne, A. Heimann, D. Hudson, P. Dostine
Election results commentary
Mayor. Mark said he’s new to politics, the attomey that represented the residents in the
water rates lawsuit which prevailed in the lower court but was overturned in the Circuit
Court.
Council and Mayor. Mark reported that the new members want to return to a strong mayor
form of government. They would do this by changing the city charter. There has also been
some talk, Mark reported, that they want the mayor to also assume city manager
responsibilities. Or, they want to hire a city manager and not do a national search.
The three incumbents whom are no longer on council (which includes Mayor Hampton)
take with them 50 years of combined experience.
Mark reported that the new council and mayor are less inclined to support the consent
agreement. Treasury should not be surprised if it receives a letter from the new mayor
requesting that the consent agreement come to an end.
Perhaps Mark and the new mayor will come up to Lansing to meet with Treasury officials.
Mark has planned an orientation for the new members on council. Five of the seven have
already been scheduled for a MML training class. The two that are not going are
incumbents. Mark requested grant dollars to cover the expense for sending council to the
forthcoming February MML conference in Frankenmuth to get both Level One and Two
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Parks and Recreation millage commentary
e This was a renewal millage (raises $400K annually for 10 years) that voters approved. It
basically means that the status quo is maintained; the millage keeps the doors open. Parks
and Rec is still stressed. Mark noted that 25% of the millage goes for heat and electricity
bills.
Senior Services millage commentary
* Millage will raise $200K annually for 10 years. This is a new millage.
RRC (Redevelopment Ready Certification) designation
e The city is in the process of updating its Master Plan. In the process, those working on the
plan are mindful to incorporate MEDC requirements and criteria necessary to be awarded
RRC certification.
Lincoln Park — Dec. 16 -B Coulter, M. Coppler R Byrne, D. Van de Grift, E. Cline, A.
Heimann, P Dostine
* Priorities / updates
© Fire contract is close to be extended through 2017, set to expire June 2016.
© Police dept. The city will be hiring 3 officers. Will be applying next year for a
COPS grant which pays 75 percent of the salaries and benefits for 2 offices.
e MSHDA
o A meeting is planned with MSHDA in January. The city has reached out to
Talmer Bank and Fifth-Third Bank regarding homeownership programs.
© Matt said the city is going to reach out to Jim Tischler from MSHDA next.
© Treasury will be scheduling a meeting in early January, the latest, to talk about
Lincoln Park’s Consolidated Plan and Action Plan.
© MERS
© No updates to report.
e Final Order
o Brad was informed about the AG’s comments on the Final Order: AG did not
want Matt Coppler’s job description included.
o Treasury informed Brad to be very careful when to release info to the council
about the Final Order. All agreed it will morning of Dec. 22.
e 2-year and 5-year
o 2-year budget arrived in Treasury this morning.
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3
© Treasury told Brad that the 2-year budget should contain as many of the “‘little’
funds as possible, be as complete as possible. This prevents any future
“tampering” by electeds when Brad exits.
Pontiac — Dec. 11 - R. Widigan, Mayor Waterman, Deputy Mayor Jane Bais-DiSessa, J.
Sobota, N. Narzarko,
e Weekly priorities:
o HB 4462 passed the Senate by two votes, House went on holiday recess before it
was taken up.
" Joe and the Mayor stated this bill will have a strong negative financial
impact on Pontiac and other cities. Senate fiscal analysis of HB 4462 is
attached.
e Hardest Hit Funds: $753K possible loss, will have to be returned to Treasury
Department.
o Half ofthe homes in the city’s historic district (20) are owned by the county and
could be condemned.
= They will need historic districts approval prior to demo.
° PEG: City will be meeting with the school district on January 20 to go over the project.
o The project is $100K over what originally planned, after the city meets with the
school district they will begin the project.
o The City will be handling the funds and RFPs.
e $6M with Gray Financial Group: No update on the assessment from the legal
department.
« OPEB mediation: City is working with the attomey to finalize a counterproposal
e Phoenix Center: Attorneys are working on the legal side
o Working with council to get their input
© Budget process:
o Audit was released and posted to the website, sent to council, etc..
= Best audit the city has seen in years.
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Council training: Last week the city stated they were working on internal training — this
week they said they weren’t.
o Dept. Mayor will discuss attending MML training.
Royal Oak Township — Dec. 14 — Supervisor Squall, R. Burgess, P. Dostine, D. Hudson
°
fe]
°
Priorities
Burgess and Fedewa are working to complete reports that are owed to Treasury per the
Consent Agreement and F & O plan.
Burgess said with police service agreement still uncertain the township has only produced
a ‘16 budget. Can’t project without the police agreement in place. The 5-year is on hold.
Burgess put two Capital Improvement Projects into the ’16 budget. He is not currently
working on the 6-year CIP.
© The two projects are 1) Widening of Wyoming Road, and 2) Updating of the
accounting system.
Burgess said for years the township has paid $20K annually for use of Grant School.
MERS
o Burgess did not want to discuss this issue, He said he would like to bring it up during
the next call. (Note: Because the supervisor was on the line | think Burgess was
reluctant to talk about the MERS money.) =
e Police Update
Oo
The Supervisor said she had recently talked to the city of Southfield. The city told her it
was interested in providing police services, but currently was under-staffed. Southfield
said it was a year away from being at full capacity. Until then, it couldn't talk agreements
with the township.
Supervisor said Treasury told the township it could continue to collect the special
assessment while it looked for an agreement with a local unit.
Supervisor pledged to continue to work hard at finding a solution to the issue of no police
service.
Clerk
© Supervisor expressed great frustration at the Clerk’s unwillingness to perform her
statutory responsibilities.
o Supervisor said this happens every year around Christmas time.
o Supervisor will be sending a letter to Treasury requesting advice on handling the
situation.
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December 29, 2015
Dear Governor Snyder:
The Flint Water Advisory Task Force, which you appointed on October 21, 2015, has devoted
considerable effort and countless hours to our review of the contamination of the Flint water supply:
what happened, why it occurred, and what ts needed to prevent a recurrence in Flint or elsewhere in
the state. We have also been assessing ongoing mitigation efforts to help assure that short- and long-
term public health issues and water management concerns will be properly addressed to safeguard the
health and well being of the Flint community.
Shortly after we began our work, we recognized the immediate need for better coordination of the
state's response to the ongoing public health issues in Flint, and for assignment of a single person to
provide this coordination. We addressed these concerns in a letter to you on December 7, 2015, and you
responded with immediate adoption of these recommendations. We thank you for the commitment
your response demonstrates.
In our continuing efforts, we have now interviewed numerous individuals at state and local levels;
reviewed many documents, articles, and emails; and deliberated repeatedly as a group. Both individually
and as a group, we have visited Flint several times during the past several weeks to meet with citizens,
public health officials and healthcare prowders, individuals who have water management
responsibilities at the city and county levels, and other public officials.
It is clear to us, particularly as we listen to the people of Flint, that it is both critical and urgent to
establish responsibility for what happened in their community and to ensure accountabiltty. This is a
first step in a long process to re-establish the trust they no fonger have in their government and the
agencies whose responsibility it is ta protect their health. It is urgent because this deep distrust of
government continues to compromise the effective delivery of protective services designed to address
ongotng public health issues. It 1s for these reasons that we are sending this letter at this time.
We believe the primary responsibility for what happened in Flint rests with the Michigan Department
of Environmental Quality (MDEQ). Although many individuals and entities at state and local levels
contributed to creating and prolonging the problem, MDEQ is the government agency that has
responsibility to ensure safe drinking water in Michigan. {t failed in that responsibility and must be
held accountable for that failure.
The Safe Drinking Water Act (SDWA) places responsibility for compliance with its requirements on the
public water system. In this instance, the City of Flint had the responsibility to operate its water system
within SDWA requirements, under the jurisdiction of the MDEQ. The role of the MDEQ is to ensure
compliance with the SDWA through tts regulatory oversight as the primary agency having enforcement
responsibility for the Flint water system.
The MDEQ failed in three fundamental! ways.
Regulatory Failure
We believe that in the Office of Drinking Water and Municipal Assistance (ODWMA) at MDEQ, a culture
exists in which “technical compliance” is considered sufficient to ensure safe drinking water in Michigan.
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This minimalist approach to regulatory and oversight responsibility is unacceptable and simply
insufficient to the task of public protection. !t led to MDEQ’s failure to recognize a number of indications
that switching the water source in Flint would—and did—compromise both water safety and water
quality. The MDEQ made a number of decisions that were, and continue to be, justified on the basis that
federal rules “allowed” those decisions to be made. ODOWMA must adopt a posture that is driven not by
this minimalist technical comphance approach, but rather by one that is founded on what needs to be
done to assure drinking water safety.
A culture change must occur within ODWMA. It must be driven by a mission that ts aspirational
regarding the role of the MDEQ in ensuring the safety and the quality of Michigan's drinking water. We
believe, and have expressed to MDEQ Director Dan Wyant, that as a Great Lakes State, Michigan should
aspire to have the safest drinking water in the nation, rather than merely aiming for technical
compliance with regulatory requirements.
Failure in Substance and Tone of MDEQ Response to the Public
Throughout 2015, as the public raised concerns and as independent studies and testing were conducted
and brought to the attention of MDEQ, the agency’s response was often one of aggressive dismissal,
belittlement, and attempts to discredit these efforts and the individuals involved. We find both the tone
and substance of many MDEQ public statements to be completely unacceptable. In a real way, the
MDEQ represents the public, including the very individuals it treated dismissively and disrespectfully in
public statements. We recognize that the agency might disagree with the opinions of others on a variety
of issues, including testing protocol, interpretation of testing results, the requirements of federal law
and rules, and other matters. What is disturbing about MDEQ’s responses, however, is their persistent
tone of scorn and derision. In fact, the MDEQ seems to have been more determined to discredit the
work af others—who ultimately proved to be right—than to pursue its own oversight responsibility.
Failure in MDEQ Interpretation of the Lead and Copper Rule
The federal Lead and Copper Rule (LCR) is central to what happened in Flint, because that rule, at least
theoretically, is designed to prevent lead and copper contamination of drinking water. The federal LCR
calls for “optimized corrosion control treatment,” which the MDEQ did not require in the switch to the
Flint River. Prior to the switch, MDEQ staff instructed City of Flint water treatment staff that corrosion
control treatment (CCT) was not necessary until two six-month monitoring periods had been conducted.
The need for CCT would be evaluated after the results from those two monitoring periods were
reviewed. The decision not to require CCT, made at the direction of the MDEQ, led directly to the
contamination of the Flint water system.
The MDEQ seems to have taken different positions on whether tt faithfully followed the LCR tn the Flint
situation. It first maintained that it followed the LCR, then stated that it did not follow the rule properly,
and most recently claimed that a federal memorandum tssued by the US EPA in early November 2015
suggests that the original MDEQ interpretation was possibly correct.
We are not convinced. Even the MDEQ’s latest interpretation of the US EPA’s November memorandum
is overly legalistic and mtsunderstands the intent of the LCR, which is to minimize risks of lead and
copper exposure for human health.
We believe ODWMA’s single-minded legalistic focus is the heart of the problem, and it is part of the
“technical compliance” culture described above. ODOWMA should not be basing its actions solely on a
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legally possible interpretation of the LCR. It should be focusing on how to protect Michigan’s citizens