Duggan And Emergency Manager

Here are some emails related to Duggan and the selection of an emergency manager for Detroit. There may be more.

Duggan emails from sbanicki

Rationale of Emergency Manager Law

Here is why I believe the Emergency Manager law makes sense and should remain in place for Detroit. The primary argument opposing the law is it takes away the constitutional rights of citizens. I submit that the law creating an Emergency Manager is very similar to a citizen losing much of his rights when he disobeys the law. When a citizen is caught driving under the influence of alcohol he can lose his right to drive. When he is convicted of a felony he can lose his freedom and spend time in prison.

The same concept applies to school districts and cities. Both types of entities are created under the laws of the state of Michigan and are expected to comply with certain rules, regulations and laws. If the entity does not comply with the laws, including meeting certain standards, the state can take corrective action including putting the school district under the emergency manager law.

The rational for such a law is that every citizen of the city of Detroit is also a citizen of Michigan and therefore the state has some responsibility to look out for the best interest of its citizens. Below are questions and answers concerning the Emergency Manager Law prepared by Michigan State University.

Many people are upset because an Emergency Manager Law was turned down by the voters and then the legislature took the issue up and passed a similar law. I agree Snyder handled it poorly but the law was needed and Detroit indeed has an emergency. This may cost Snyder the election and I give him credit for doing what he believes was correct even if the result may be that he is a one term Governor.

Detroit Needs To Transfer Water and Sewer Department

It makes financial sense that the City dispose of the ownership of the Detroit Water and Sewage Department (DWSD). It is in need of significant capital improvements and it is too costly to operate.

The DWSD needs to make significant capitol improvements and it is not in position to do so. The cost of borrowing money by the DWSD is high because of its affiliation with Detroit. Time has also shown that the DWSD is not able to raise utility rates. The anticipated capital improvement program over the next four years totals $1.2 billion dollars, which the City does not have.

The tentative plan, created prior to Kevyn Orr, calls for the city to annually receive $50 million to transfer the DWSD's assets to a to be formed regional Authority.

Emergency Manager And Role Of Mayor And Council

Below is a bullet point description of the roles of Detroit's Mayor and City Council as per page 66 of the plan submitted to the City's Creditors on June 14, 2013.

• Mr. Orr acts in place of the mayor and city council.

• Detroit's local elected officials are prohibited from exercising any powers except as expressly authorized by PA 436 or as authorized in writing by Mr. Orr and subject to any conditions he may impose.

• On March 25, 2013 issued an order restoring the full salaries and benefits of the mayor and city council.

• On April 11, 2013, issued an order authorizing the mayor and city council to continue conducting the day-to-day business of the city, subject to limitations imposed by PA 436 and Mr. Orr's ultimate approval.

Slideshow Presentation of Detroit's Proposal To Creditors

All information below was taken from a presentation by the Emergency Manager of Detroit, Kevyn Orr, to Detroit's creditors on June 14, 2013.

Em plan 061413 horizontial 1