Krystal Crittendon Regarding Financial Advisory Board Report

Committee to Elect Krystal A. Crittendon

February 25, 2013

FOR IMMEDIATE RELEASE
CONTACT: Phillip Brown, 313 717 5077

Statement of Krystal Crittendon Regarding Financial Advisory Board Report

City can collect $800 million owed by businesses, says Crittendon

Detroit Mayoral Candidate Krystal Crittendon released this statement today in response to the Governor-appointed Financial Advisory Board’s release of findings after its 30-day review:

"The Financial Advisory Board's findings in their report concerning the City of Detroit's financial status should come as no surprise to anyone. The bottom line: the Report provides no justification for the appointment of an emergency financial manager, especially when it makes no mention of $800 million in accounts receivable owed to the City as confirmed by State Treasurer Andy Dillon.

“The FAB had already found the City to be in severe financial distress in 2012. The specific findings contained in the report regarding whether the City was in ‘severe financial distress,’ whether the City ‘had a plan in place to address the financial distress,’ and whether the City had a likelihood of fixing its financial problems, are findings which are required to be made and contained in a financial report to the Governor by a FAB empaneled under PA 72. No one reading the report should be shocked that these findings are included.

Rosa Parks Arrest Vigil and DDOT update

Cross posted from Occupy Detroit Transit

Saturday, December 1 at 3 pm a candle light vigil will be held at the Rosa Parks Transit Center. The event commemorates 57 years since Rosa Parks was arrested for failing to sacrifice her seat on a Birmingham Alabama bus to a white passenger. We need to bring awareness up of the history to present of the fight for Human Rights.

The 2nd floor lobby will have the vigil and recognition, awareness on the street at the transit center needs to be increased. This isn't a time for peaceful recognition of a key moment in the struggle. It is time to show there is still progress to be made.

DDOT Update

Detroit Department of Transportation (DDOT) has been routinely discussed as a public service that Mayor Bing's administration believes should be privatized. The people spoke up at the November 19 and 20 City Council sessions. We questioned the wisdom of entering into five contracts to provide "engineering services" which morphed into management services last year through closed door meetings of the Mayor's administration and a turnaround team.

The vote on November 20 turned down the contracts and requested an emergency interim contract be drawn not to exceed nine months for critical engineering services. This leaves DDOT without a senior management team as the Envisurage/TransPro contract fizzles out today, November 30. An audit of service provided by the contracting firm needs to be conducted by the Auditor General prior to payment of bonuses that are part of the contract.

"Reform Agenda" To Remove Detroit Department of Transportation

Can we shake free of the "Reform Agenda" put forth through the Financial Stability Agreement. Since Public Act 4 and 72 were repealed November 6 this agreement and operations under its guise need to be halted. In the plans according to the September 2012 Financial Advisory Board meeting:

• Create a new governance model by January 2013 to overcome challenges such as:
  • Collective bargaining agreements
  • Civil service bumping rights
  • Financial information systems
  • Divided responsibility and authority
• Timeline of outsourcing operations and management
  • Feb 2013 - Release of RFP
  • Mar 2013 - Formation of new authority
  • Jul 2013 - Outsource management vendor selected
  • Sep 2013 - New authority board approves selected vendor
  • Jan 2014 - New vendor begins management of DDOT

These plans would remove public transportation and replace it with privatized public service. Do you believe the public will be better served by a private entity? What manner of public discourse will they be required to have?

The next Financial Advisory Board meeting is scheduled for December 10, 2012 starting 2:00 pm at McGregor Conference Center on Wayne State University Ferry Mall, across from the Law Library. The State of Michigan needs to stop holding meetings and advancing an agenda that is not supported by law. Likewise City of Detroit administration (Mayor Bing, et al) need to step forward and assume responsibility to provide service to protect the people as their oath of office requires.

State & Region Transportation Update

November 27 the State Senate passed legislation (SB909, SB911, SB967) to create a regional transportation authority for South East Michigan. Additionally SB912 was passed regarding zoning of land for use by the regional transportation authority. The pressure was on from the Federal Transportation Authority as US Transportation Secretary Ray LaHood has promised $25 million for construction of the M-1 Light Rail project provided a regional transportation authority was created.

These bills are to be discussed at the State Transportation Committee meeting on December 5, 2012 at 10:30 am in Room 307 of the House Office Building in Lansing. Once approved through the House the bills would go to Governor Snyder for approval into law.

Troy Transit Center Underway

The Troy Transit Center (partially in Birmingham as well) began ground breaking on Tuesday November 28. Opposition was from the now-recalled former Mayor Janice Daniels. 

The 28,000 sq-ft center replaces an old Amtrak station on a 2.4-acre site at Maple Road and Coolidge Highway.

Financial Advisory Board meetings

Tuesday we received notice of the Detroit Financial Advisory Boaard meetings scheduled for today into December. These meetings will be held at McGregor Memorial Conference Center, 495 Ferry Mall, 2nd floor  rooms f-g-h.

The dates, with the exception of today, July 26 are on the second Monday of each month. Time for all meetings is 2:00pm.

When it comes to security there are three authorities: Wayne State University Security, Detroit Police, and State Police.

Notices for the meetings comes from the Michigan Treasury.

The FAB 9 and Dynamic Duo

Meet the Financial Advisory Board, CFO, and PMD that have taken control of the City of Detroit through the Financial Stability Agreement (Consent Agreement). Their first meeting was on June 15, 2012 as the final members were appointed.

Name	Age	Hometown	Appointed by	Experience	Education
Program Management Director
William "Kriss" Andrews	60	Novi	Gov. Rick Snyder and Detroit Mayor Dave Bing were to agree to a list of candidates for the post. Bing made the final selection.	Executive vice president and chief financial officer for the Auburn Hills-based Energy Conversion Devices. Formerly worked at the Southfield-based global business advisory firm BBK as senior managing director and co-leader of the North American automotive practice.	Bachelor's degree in accounting from Bradley University; MBA in finance and managerial economics from Northwestern University
What he said			"We know there are easier jobs in the world. There are easier ways to make a living. But it was challenging, and I thought I had a background where I could contribute greatly, so I decided to do it."
What others say			"Kriss' reputation as a certified turnaround manager is well-documented. I welcome him to the team and appreciate his commitment to assist in fiscally stabilizing our city." -- Bing
Chief Financial Officer
Jack Martin	71	Bloomfield Hills	Mayor Dave Bing	A certified public accountant and founder and chairman of Martin, Arrington, Desai & Meyers. Former Highland Park Public Schools emergency manager. Served as chief financial officer of the U.S. Department of Education and as chairman of the board and acting CEO of Home Federal Savings Bank of Detroit.	Bachelor's of science and MBA from Wayne State University
What he said			"While most of the discussion regarding the financial stability agreement focuses on deficit elimination, equal concern and work must focus on fixing the quality-of-life issues which are causing citizens to leave the city of Detroit."
What others say			"He brings critical expertise to my administration as we work to fiscally right the city." -- Bing
Financial Advisory Board
Robert Bowman	57	Harbor Springs	Governor Snyder and Mayor Dave Bing	President and CEO of Major League Baseball Advanced Media and a former state treasurer. President of the Michigan Education Trust, the nation's first prepaid college tuition program.	Bachelor's degree from Harvard University; MBA from the Wharton School at the University of Pennsylvania.
What he said			"I've worked in the public sector for 10-12 years, at every level, with hardworking, talented public employees. ... That said, it doesn't happen by magic, and it doesn't happen overnight. It takes a lot of hard work."
What others say			"These ... appointments set the tone for the caliber of people and the type of collaboration that is essential to the transformation of Detroit." -- Bing
Darrell Burks	55	Franklin	Governor Snyder	Senior partner at Price Waterhouse Coopers	Bachelor's degree from Indiana University
What he said			"The challenge is great, but it's not impossible, and we look forward to, in essence, grow the city of Detroit back to where it was in the '60s and '70s."
What others say			"I am pleased that we have been able to call on such uniquely talented individuals." -- Snyder
Ronald Goldsberry	69	Bloomfield Hills	Governor Snyder	Auto consultant for Deloitte Consulting. He was a vice president of global service business strategy for Ford and second African-American vice president in Ford history.
What he said			"I have a lot of experience with restructuring and complex financial issues. I've served in the community. I'm committed to the community. I understand the services that need to be provided."
What others say			"Ron Goldsberry is committed to a strong, revitalized Detroit. The reinvention of Michigan depends on it, and his participation will be beneficial" -- Snyder
Mary Beth Kuderik	52	Birmingham	City Council	Chief financial officer of the UAW Retiree Medical Benefits Trust
What he said			"I really believe strongly in the city of Detroit and the assets that it has."
What others say			"She has the one expertise that I believe will help the most: She not only designed and implemented the VEBA for the UAW and General Motors, but she was hired by (UAW chief) Bob King, who supports her being on this committee, by the way, and I just think that expertise in coming to help restructure health care is tremendous." -- Council President Pro Tem Gary Brown
W. Howard Morris	53	Detroit	City Council	President and chief investment officer for Prairie & Tireman investment firm	Bachelor's degree from Northwood University, MBA from the Wharton School at the University of Pennsylvania
What he said			"I have a vested interest this city. This is what I've been trained to do. I'm a financial guy. That's what this board is for. As far as the public stuff, I'm willing to withstand the potshots that come along with that."
What others say			"He has great credentials. He's a Detroiter. He's an African American. He graduated from the Wharton School. He's the most known of the 21 candidates we talked to. He's going to be a fine and outstanding candidate on this board." -- Brown
Eddie Munson	61	Rochester Hills	Mayor Bing	A certified public accountant and former partner at the auditing, tax and advisory company KPMG	Bachelor's degree from Jackson State University
What he said
What others say			"He's extremely knowledgeable, very focused. ... He's very committed to the community. He's got great financial background. He asks pointed questions in a reasonable way. That seems like the kind of person you need in this situation." -- Beth Ardisana, CEO of ASG Renaissance in Dearborn, and fellow board member of the Skillman Foundation
Sandra Pierce	54	Northville	Mayor Bing	President and CEO of Charter One Bank of Michigan	Bachelor's degree in business administration and MBA in finance from Wayne State University
What he said			"I think every one of the nine members on this committee are as critical as me, but someone needs to coordinate with the city and the state to get us together and on the agenda. I view my role as a coordination role."
What others say			"What you see is what you get. She doesn't live her life in a box. She is authentic, and she loves to have a good time." -- Shirley Stancato, CEO and president of New Detroit
Glenda Price	72	Detroit	Governor Snyder	Former president of Marygrove College and past provost at Spelman College in Atlanta	Bachelor's degree in medical technology, a master's in educational media and a doctorate in educational psychology from Temple University
What he said			"If there is anything that is too difficult for us to tackle, then we're the wrong people. What we must do is to understand that our responsibility is to address all of the issues that are identified ... and do the best that we can to put the city on the right path for future growth and development."
What others say			"Glenda Price shares our belief that a strong, financially viable Detroit is essential to Michigan's economic reinvention and success." -- Snyder
Ken Whipple	77	Bloomfield Hills	State Treasurer Andy Dillon	Former CEO of CMS Energy	Massachusetts Institute of Technology
What he said			"The agenda is pretty well set in terms of the things that need to be done. Our job is to try to provide what expertise and leverage we can to accelerate that agenda."
What others say			"He's a true gentleman, and he's got a great ability to analyze a problem and then develop a plan of action to address it." -- Jeff Holyfield, a spokesman for CMS Energy

This entire process had absolutely no public approval, met a lot of public resistance, and as such is a complete fall-out of the Law as given through the City Charter. You'll hear from the State of Michigan that our elected officials voted in favor of handing over the city and abdicating their responsibilities. Several City Council members will say they did what they felt was best for Detroit - that would make their choice a vote against their constituents.

We have moved into taxation without adequate representation. We encourage you to fill out an Ethics Complaint, have it notarized and turned in to the Board of Ethics.

Note the contents of the table above are from the The Detroit Free Press, June 16, 2012. Our display is shown as a table. Additional commentary has been added in italics.