We need to advise Tom and Fred of the situation and set a call with Natasha and Pete
Sent from my iPhone
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CITY OF FLINT
Dayne Walling
Mayor
September 14, 2015
The Honorable Rick Snyder
Govemor, State of Michigan
P.O, Box 30013
Lansing, MI 48909
RE: Call for Additional Support for Flint Water Improvement Plan
Dear Governor Snyder:
On behalf of the Flint community, | am writing with a renewed request for additional support to
address Flint’s water challenges to ensure that water is affordable and secure for everyone in Flint
especially our vulnerable populations. I am asking for an additional $30 million in funds for Flint’s
infrastructure and a new healthy homes initiative.
Significant progress has been made throughout this year to increase water safety and quality and I
thank you for the involvement of your office, the Michigan Department of Environmental Quality,
and the Michigan Department of Treasury. A majority of items in the Water Improvement Plan
are completed or underway. Most importantly, Flint is now in compliance with the Safe Drinking
Water Act due in large part to the installation of the new carbon filter. The infrastructure systems
are being made more secure and efficient through the State grants. Now the City is committed to
following the recommendation of the Michigan Department of Environmental Quality to optimize
the treatment process, reduce corrosion and further minimize risks from lead.
The need to accelerate the City’s capital improvement investments remains and has been further
increased by the continued financial stress and legal issues. Previously I requested support for
replacement or forgiveness of payment to the Drinking Water Revolving Loan Fund due to Flint’s
status as a distressed community and the gap in funding in the adopted capital improvement plan.
I understand that the existing federal law does not allow the existing Drinking Water Revolving
Loans that Flint is carrying to be forgiven in retrospect but the need still exists. Flint owes
approximately $20 Million. One solution is for the State to grant a new $20 Million that is designed
as forgivable from the start. Another solution is to provide
Cry of Flmt © 1101S Saginaw Street * Flint, Michigan 48502
wiv cilyotflint com © (810! 766 - 7346 © Fae (810) 766 - 7218
xxxEND_PAGE:treasury01_b37_6553_6782_061
The Honorable Rick Snyder
September 14, 2015
Page 2
equivalent funding through an expansion of the grant program to Michigan’s Financially
Distressed Cities, Villages and Townships with a supplemental budget amendment in cooperation
with the State Legislature.
The community’s heightened concern about lead leeching into the water from old service lines and
home plumbing also needs to be addressed. We know that lead is an environmental contaminant
and there have been many programs in place over the years to address sources in paint and pipes.
Flint needs a new healthy homes initiative specifically focused on lead in water with $10 Million
to start the process of replacing service lines for the most vulnerable houscholds. Regardless of the
source and treatment of Flint’s water, this long term threat of lead in pipes needs to be removed in
the interest of public health.
My approach continues to be to work with you and your appointed officials, State Senator Ananich,
State Representatives Phelps and Neeley, Congressman Kildee, community groups, businesses,
churches, foundations, the Flint City Council, and all of the City of Flint and State and Federal
government personnel. We need every available expert and resource to address Flint’s water
problems.
Flint’s safety is my top priority. Just as the City and State have worked together on public safety,
we need additional support for fixing the water problems, We need $30 Million in new funds to
repair and update the city-wide infrastructure and to assist households in becoming lead-free. The
entire Flint community deserves sustainable, safe, secure and affordable water now and into the
future. Thank you for the consideration Governor and I look forward to future discussions.
Sincerely,
Dayne Walling
Mayor, City of Flint
CC: Flint City Council President Joshua Freeman; Congressman Dan Kildee; State Senator Jim
Ananich; State Representative Sheldon Neeley; State Representative Phil Phelps; EPA Regional
Administrator Dr. Susan Hedman; Chief of Staff Dennis Muchmore
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Weekly Conference Call Notes — Sept. 14, 2015
Allen Park —Sep. 11 — Mayor Matakas, B. Cady, M. Kibby, R. Byrne, E. Cline, P. Dostine
Priorities
o Payroll clerk is leaving Allen Park, going to Garden City. Allen Park will start interviews
for new payroll clerk Monday.
© Town Hall meeting scheduled for next week. Topic is 2 mill on ballot for street repair.
o City closing books. Audit to start next week.
Update on Bond Tender
o $1.3M so far. Cady said they are disappointed. Hoping that people waiting to last minute
(Sept 16) for every penny.
Fire contract Update
o Fireman are taking Allen Park to arbitration. They and the city cannot reach an agreement.
Cady said one of the problems is that all the city’s internal knowledge is gone.
oO
FDCVT Grant Application
© Allen Park is working on the grant. Looking to fund a LED replacement program and
purchase a portable generator.
°
Retiree Health Care Update
© The retiree have been switched to Humana. The under 65 and actives are with BCBS. Go
live for both is Oct. 1
°
Position/Classification Study Update
o Allen Park selected White Hall Group ($47K) to conduct third and final piece of the study:
city personnel/service efficiency study. Other two, Job Description and Salary Surveys,
MML did.
°
Beatom Lawsuit
eo Settled for $22.5K. MML is paying the cost.
Benton Harbor —Sept. 10 —D. Watson, R. Byrne, P. Dostine, E. Cline
Priorities
o Fri, Sept 11, Benton Harbor is unveiling its Sept 11 Monument. Expecting 1,000 people.
o BH still in negotiations with FOP and AFSCME. Darwin said it’s easy because the city
has no money.
°
Lange, O’Brien / Unruh Lawsuit
o No update, at a standstill.
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Update on Vacant position
o Assessor position. RFP went out. A company responded that Darwin likes, a mother and
son team. One works as an assessor for a small twp. One works in equalization for
Berrien County. The cost for their services is $10K less than former assessor. They are
committing to 2 years.
o Finance Director. Darwin forwarded Treasury the MML-headhunter specs for the
position. The headhunter is Kathy Eisinger (sp)
o Plante Moran is conducting the annual audit. Preliminary numbers show a $774K fund
balance. A Ronda Hildebrandt, interim finance director as described by Darwin, will be
helping out BH from now through the close of the audit. She will be at the offices 5 days
a week. Watson plans on asking her is she has any interest in applying for the finance job.
o Water Supervisor. BH posted the position. BH has an agreement with St Joseph to assist
them. The current supervisor is staying till Oct. 20. BH also advertised for a Distribution
Foreman.
o Community Development & Economic Director. The current director is staying till Nov,
she will help with transitioning the new hire when he/she gets on board. BH posted the
position already.
o BH’s political season is in full swing. Darwin noted that commission meetings are
ratcheting up.
FDCVT Grant
o Darwin plans to make an application in about 2 weeks. The focus will be using the
grant monies on the sanitary survey results mentioned below.
Sanitary Survey results
© Two areas were found to be deficient: the hydraulic and reliability systems.
New commissioner
o Darwin reported that the new commissioner is doing well. He’s been given the
Charter Code of Ethics and a copy of the ordinances.
Ecorse — August 25 — W. O’Neal, T. Sadowski, J. Pepperman, R. Byrne, P. Dostine, C.
Porubsky
Priorities:
Waiting to hear from Treasury on five-year budget, would like feedback. Randy: does the budget
reflect the consolidation with River Rouge? Current fiscal year doesn’t show anything, didn’t
budget for savings. Transferred salaries to professional services. Has some time to show savings.
Has leeway in PA 33.
Spoke with RR yesterday, have to put contract on hold. Things are heating up. If the deal does
not go thru, all Ecorse FF will be reduced to part-time. Would help with savings needed to
balance five-year. Current salaries are around $850-900K, thinks this would cut roughly in half.
Would pay RR around $400K. Would like to have shared command with the agency to cut down
on overtime costs. Their Public Safety gets a bonus, Ecorse has not had a raise in twelve years.
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Tim’s first day was yesterday. John and Tim will work together this week. John has volunteered
to be on call.
DPW Superintendent resigned last week. Will be brought to the RTAB next month. This
position was being paid salary plus overtime. Has been here around two years, Wayne thinks
he is overwhelmed administratively. Wayne is thinking of moving current employee into vacant
treasury position and give an applicant that has water/sewer billing experience the position of
DPW Administration Assistant. Wayne stated the bills are going out on time; has some problems
to address regarding fraud, etc.
OPEB Benefit Audit is also on the radar, Wayne is going to look at. Has to look at what a
couple people are paying for healthcare and ensure it is the correct amount. Pre-65 do not have
healthcare anymore, only ones grandfathered in (approximately % dozen or more). Wayne has
met with MERS multiple occasion. 7.75 rate of return, Wayne was using 8. Need to recalculate.
Prax Air: Got a call from Livese at Prax Air and stated there are things that need to be changed in
the resolutions to comply with law. Getting prep work ready, conducting pre-construction
meetings, etc.
Council voted to receive and file letter from Wayne Workman.
Flint — Sept 2 — Mayor Walling, N Henderson, J Freeman, Wendy, R Byrne, E Cline, P
Dostine
o Flint sent adjusted water bills out to customers; bill reflects 35% reduction per court
order. (So, even if stay is granted, customers will receive at least one newly adjusted bill.)
Henderson said financial impact of adjusted rate is approx. $600K per billing period. For
the year, projected to be $7M.
o Average water bill reduction for a 5/8” line is $18.00. Flint is still able to bill and collect
for water and sewer service charges.
© Class Action Suit. How many homes are affected? Flint officials have assumed the
impact is city-wide, some 30,000 customers. The city doesn’t know how many past,
foreclosed homes are a result of delinquent water bills. Mayor Walling and Henderson
said they are trying to determine this number.
o Flint can resume water shut-offs with the new, adjusted bills that just went out.
o Henderson has asked engineers to study the KWA project, to see what is essential, what
must remain. The engineers said there are two different scenarios: (1) June Plan, (2)
December Plan.
o First KWA bond payment ($6M) is due in Nov-15.
o Results from Quarterly Water Test. TTHM levels tested higher than the average in one
part of the city. Levels still within acceptable limit. Flint not required to send out
notifications.
o Flint still continuing its meter installation program.
xxxEND_PAGE:treasury01_b37_6553_6782_065
© Flint will be applying for this year’s FDCVT grant, $2M, for a property assessment
project.
o Watermain Break. The break is under the Flint River. City officials said they cannot fix
this in-house, will have to contract it out. Will need RTAB approval. A special meeting
may have to be called to address this issue.
o Public safety. Fires are down, but this means the city loses some eligibility for grants.
Homicides are still high, approx. 42 so far this year.
o The administrative assistant was hired, brought on, prior to the recent hiring freeze edict.
o Flint officials asked Treasury during the call if there was any assistance available to the
city for its suspended CIP.
Hamtramck — Sept. 10 — K. Powell, R. Byrne, P. Dostine, D. Van de Grift
Priorities
o Hamtramck is busy working on the park in front of City Hall, Pope Park, and Veteran’s
Park.
o Katrina attended a focus group meeting in A2 hosted by the MML. MML is exploring the
development of a program that would provide consultants to communities in financial
distress. Other participants included: Joyce Parker, Flint’s finance director, a Monroe
representative and someone from the GFOA.
© Hamtramck’s city council as well as Katrina will attend next week’s MML conference in
Traverse City.
o Hamtramck is signing contracts with an auditor to audit the city, a company to perform
sewer repairs, and someone to audit the housing fund. The city has yet to bid-out the
landscaping contract.
o No meeting date has been set yet between Katrina and the Wayne County Executive and
the Sheriff to discuss jail services.
Police Study
© Katrina reached out the ICMA who gave her a list of consultants to conduct a police
study. They included Tri Data, Wes Anderson & Assoc, McGrath Consulting, and Fitch.
o Treasury provided Katrina with a contact at the ICMA who may be able to assist with the
study.
Housing discrimination lawsuit
o There are 5 homes left to be built: Hamtramck is responsible for two, Habitat for
Humanity two, and MSHDA one. The cost to Hamtramck will be approximately $500K
of which the city will put on its winter tax rolls.
City Treasurer
© Has been busy on some projects.
xxxEND_PAGE:treasury01_b37_6553_6782_066
Inkster — August 13 — M. Stuhldreher, R. Byrne, P. Dostine, C. Porubsky
e Priorities/Misce.:
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DOJ employee came in to facilitate community group (resulted from Dent situation).
Richard Marsh is transitioning; Mark is getting used to new position/role.
Meeting with MSHDA on Monday; Mark will be in attendance.
Discussion will take place Monday at the Council meeting regarding Mark’s role as
Interim City Manager.
Final billing for search has been processed.
Police training is needed, but it is hard to send as they are short-staffed. Randy suggested
contacting Capt. Yes.
TIFA is declining; Mark will have to get money from GF. Debt was issued in 2010 and
has about 20 years left. This was in the long-term forecast and is not a surprise. Initial
projections were at 4-5%, actual rate of decline was 8-9%.
© Police Chief:
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Started Monday. Interim Chief Thomas is completely separated from the agency now, but
the two were able to spend some time together.
To Mark’s knowledge, the Chief has not met Captain Yesh yet, but has met some MSP
members, include Lt. Shaw.
Mark stated that the new Chief is straightforward, about business, articulate, and has
good people skills, Expects that the community will embrace him.
Randy would like to meet the new Chief and see the building.
e Chargebacks:
Q
°
Came back lower than budgeted.
$300K positive variance on GF, $100K negative on Sewer; everything together is $213K
positive variance.
Lincoln Park — Sept. 9 - B. Coulter, R. Byrne, E. Cline, D. Van de Grift, P. Dostine
Priorities:
o Cell Tower
°
°
o Should be completed next week. The City expects to gross about $350K.
PA 345 Issue
o The EM will be holding 3 town hall meetings with the Police and Fire chiefs. The
Mayor may also be invited.
© Information will also be placed on Cable TV and on the City’s social media sites.
o The EM noted that he is being careful not to violate state law regarding ballot
proposals.
FDCVT Grants
o Applications being developed.
co Retiree Lawsuit
xxxEND_PAGE:treasury01_b37_6553_6782_067
o Noactivity on this issue. Noted that MML will not provide insurance coverage. The
EM is deciding how to address this.
o Cost Recovery
o All information is being assembled for cost recovery regarding the tanker fire on I-
75.
o Jury Duty
o The EM is still scheduled for jury duty the week of September 21.
o Panhandling and Donation Bins — The EM is still considering the adoption of ordinances
regarding these issues.
o First Amendment issues must be taken into concern.
o May look at enforcing this through the Motor Vehicle Code.
FY 15-16 Budget
o Adopted.
City Manager
o Start date is anticipated at October 1.
4-Month Plan
o The EM indicated that this is moving forward.
MSHDA/MEDC
o No new information.
Exit Timeline
o Eric is to develop a draft Exit Timeline to share with the EM.
o Drew stated that the EM’s last day, based on the 18-month limit, is Thursday,
January 7, 2016.
Wayne County Sewer Issue
co This continues to be researched.
Pontiac — Sept. 11 — Councilman K. Williams, J. Sobota, , N. Nazarko, R. Byrne, P. Dostine, R.
Widigan
e Weekly Priorities:
eo Council will have a special meeting on Monday to take up the contact for the
Deputy Mayor and the Transition Advisor Position.
e Questions from Councilman Williams:
1. Is this a true transition?: Yes, it is.
xxxEND_PAGE:treasury01_b37_6553_6782_068
ow
Why is there no timeline in the contact for the transition advisor?: The timeline is
unknown, it may take 5 months or 10 months. Jerry is simply an advisor, period. The
idea is to limit the number of hours, hoping there is no need to re-new the contact.
. It would be prefer that there are limits on the advisor, council has no appetite to add
more “advisors”. Why not set the contract at 4 months and renew if it’s needed: We
will take to W. Workman.
Retiree healthcare and Phoenix Center litigation are two big issues. Healthcare
lawsuit must be resolved before RTABs exit?
Financial best practices have already been implemented,
limits to spending, fund balance policy, etc... RTAB/State has requested a 5-year
financial plan, that is out of council’s control: Mayor stated the requirement is to have
a two year budget and a five year projection, right now they are waiting on the
council to address and act on the two year budget. Sobota stated once the first two
years is finalized the five year protection will not be difficult.
a. Councilman Williams: how much of these bullet points must be
finalized/addressed before the RTAB can begin the transition and what are the
sticking points to transition out. Council needs a list of what THEY need to
take care of to help with transition. Most of the bullet points are in the hands
of the Mayor, Dept. Mayor, and CA.
b. How does the Council show the state that they are making progress/addressing
the checkpoints.
c. The benchmarks are left to interpretation as to how to complete them, need a
clear set of bullet points showing how the council moves towards local
government (referencing the contract).
d. The Council’s key goal is to have a legitimate plan as to how to transition.
e. Issue with the contract is it does not come back to the Council, there is no
renewal date. No problem with the council renewing it, the problem is that it’s
not an option.
Deputy Mayor Position Update: No vote was taken last night, the council agrees with
the Mayor’s choice. Debate on the salary. Council will meet on Monday at 5PM to
address.
© Raise in the salary was NOT mentioned to the council until last night. Last they
were informed the salary was $95K. With the salary at $107K it will be hard to
get four votes from the council.
o Residents do NOT want the Dept. Mayor making more money than the Mayor.
Transition Advisor Position Update: Comments from Mayor — Councilman Williams is
part of the old guard, looking for some sound bites and is a very ‘savvy’ councilman. Any
changes Treasury makes to the contract he will take to council and will say that they took
on Treasury and ‘won’.
© Mayor says that if changes are made to the contract it puts her in a precarious
situation.
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Community Development Positions: City is still accepting applications. HR director
will review and present to the council. Process closes soon.
Street Sweeper: Council is requesting to bring street sweeping ‘in-house’. No research
has been done as to the liability and cost of this undertaking.
Two-year Rolling Budget: This is being addressed by council and committees.
RTAB Agenda add-on requests: Mr. Sobota is requesting the RTAB address street
sweeping and DPW road stripping. He was informed the request must be submitted in a
memo by noon today.
Royal Oak Township — July 27— R. Burgess, D. Squalls, R. Byrne, P. Dostine, C. Porubsky
Priorities for the Week/Miscellaneous Items:
oO
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Set up meetings for this week or next with potential developers.
Code enforcement officers currently have dealership in court over taxes — Donna thinks
the best scenario would be for someone to buy both the dealership and motel next to it
and demolish the motel.
Donna: Finish F&O Plan.
Robert: Spoke with Finance on Thursday, need a cash flow analysis for the remainder of
the year and to create an amended budget.
Current on all bills with the exception of one.
Revenue sharing is anticipated to be the only income, but Robert thinks there is enough
money to make it thru the year.
Randy reminded the Twp. that a monthly financial report is required.
General fund renewal is on the ballot August 4; Donna and Robert would like to send a
flyer out. Randy cautioned them on the wording
Audit:
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Completed; Donna said that it was better than last years’ and didn’t highlight many
problems.
Robert stated that one of the things the audit noted was that an inventory needed to be
completed.
Donna wanted to know if the Board had to approve the audit — Randy said to ask Mr.
Wilkerson.
Police Update
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Donna will know soon after August 4 (election) more regarding Hazel Park.
Oak Park is not interested; very short meeting where annexation was suggested.
Ferndale: Over $1M, have not talked to.
Deadline is August 31; if not completed money will need to be returned.
Street Lighting:
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Completed last Friday, grant should close this week.
A rebate of $9700 is anticipated.
Bills should start being lower in September; the entire $10K budgeted for these may not
be needed.
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Dempkowski, Angela (Ti reasury)