EMA, WHICH PROPOSED DWSD CUTS, TIED TO FICANO, HEISE

Mayor Dave Bing at podium, (l to r) Macomb County Public Works Commissioner Anthony Marrocco, Wayne County Executive Robert Ficano, Oakland County Water Resources Commissioner John McCulloch; McCulloch initiated motion that U.S. District Judge Sean Cox ruled on in February, which gave the suburbs domination over the Detroit Water Board.

By Jackson Anderson

Oct. 1, 2012

(VOD note: this excellent commentary was submitted today by a VOD reader.)

The media is not reporting that the company that received the $48 Million contract (EMA) is tied to the Robert Ficano Machine and Kurt Heise. No one is disclosing EMA’s connection to Wayne County going back to 1998 – here is the proof:

http://www.co.wayne.mi.us/documents/JMC-presentation-9-17-08-final.pdf

Slide from presentation referenced in link above; note EMA in bottom corner. Brian Hurding also presented the 81 percent cut DWSD proposal to the Water Board.

Dave Bing is in over his head and does not do any homework. He is just going along blindly because he does not care and it sounds like a good idea. Ficano’s people are running the City’s Water Department (James Fausone, water board chair, Matthew Schenk, DWSD COO, Woolfson, etc.).

Brian Hurding of EMA at Detroit Water Board meeting Sept. 7, 2012, where $46 million EMA contract was passed.

How can you justify a $48 million NO-BID CONTRACT to a EMA based on a 90-day self-serving review conducted after EMA (which was paid for by the first NO-BID Contract?) All that the Water Commissioners were given was a POWERPOINT PRESENTATION!

DAVE BING AND THE WATER COMMISSIONERS ARE GOING TO DECIMATE THE WATER DEPARTMENT (ELIMINATE 81% OF THE STAFF) BASED ON A SELF-SERVING POWERPOINT PRESENTATION BY AN OUT-OF STATE COMPANY?

Where is the expert review to confirm the viability of the proposal?

Where is the due diligence into EMA (they have a spotty history and have caused problems with other water systems) – Toronto is an example. New York may be another example (someone needs to check this out).

John McCulloch, Oakland Co. Water Board rep, Pam Turner, former DWSD interim director, Kurt Heise, then Wayne Co. Ficano appointee.

Where is the outcry over a $48 million dollar no-bid contract? How can you just say “the bidding process would take too long”?!!! Since when has that been an adequate justification for circumventing the bidding process? If it were Kwame Kilpatrick, then the news media would be calling it corruption.

Do you honestly believe that you can cut 81% of the staff with no effect on service?

Which staff will they cut?

Matthew Schenk, DWSD COO and former Ficano appointee.

They claim that they are going to cross-train people to do multiple jobs – so if a person calls in sick, we have effectively lost the equivalent of three people? As a practical matter, do you believe that you can make everyone do three jobs overnight? People are not fungible.

Do we want more unemployed people in the City (950 new unemployed residents??

Water Board chair and former Ficano appointee Walter Fausone.

This decision stinks and no one is probing into it. It is going to decimate the Water Department and potentially put the health of millions of people at risk. The media is just being bamboozled by the claim that there is a horseshoer title. Are we really that easily duped by the Ficano Machine?

For PDF of this story, click on EMA TIED TO FICANO, HEISE VOD.

Related articles:

http://www.freep.com/article/20120710/NEWS02/207100354/Ficano-s-ex-appointees-get-six-figure-jobs-at-Detroit-water-department

http://voiceofdetroit.net/2012/09/09/board-passes-48-m-5-yr-ema-contract-to-cut-81-of-detroit-water-workforce/

http://voiceofdetroit.net/2012/08/22/toronto-under-water-sewage-in-wake-of-ema-plan/

http://voiceofdetroit.net/2011/01/26/stop-takeover-of-detroits-water/  regarding State Rep. Kurt Heise’s proposal to take over DWSD. He was also a sponsor of Public Act 4.)

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CITY THREATENS TO SUSPEND, FIRE WATER WORKERS, BUT THEY CONTINUE STRIKE

VOD Update: As of Monday morning, Oct. 1, U.S. District Court Judge Sean Cox’s scheduler said no hearing has been set for today on the city’s motion to ban the strike. That does not mean Cox will not issue an order without a hearing, which he has done before. Workers say support on the picket lines from the community is vital. Below is a map of the location of the Wastewater Treatment Plant at 9300 W. Jefferson, Detroit.

 

RELATED ARTICLES:

http://voiceofdetroit.net/2012/09/30/city-water-workers-strike-for-detroits-future-call-for-picket-line-support-beginning-oct-1/

http://voiceofdetroit.net/2012/09/30/the-detroit-water-workers-strike-must-win/

http://voiceofdetroit.net/2012/09/27/detroit-dwsd-debt-shows-wall-street-never-loses-on-bad-swaps/

http://voiceofdetroit.net/2012/09/09/board-passes-48-m-5-yr-ema-contract-to-cut-81-of-detroit-water-workforce/

http://voiceofdetroit.net/2012/08/22/contractor-ema-proposes-to-cut-81-percent-of-dwsd-jobs-workers-mobilize-for-strike/

http://voiceofdetroit.net/2012/08/22/toronto-under-water-sewage-in-wake-of-ema-plan/

http://voiceofdetroit.net/2012/08/19/former-head-engineer-weighs-in-on-dwsd-restructuring-plan/

http://voiceofdetroit.net/2012/08/12/picket-dwsd-huber-facility-wed-aug-15-4-pm-save-our-water-dept/

http://voiceofdetroit.net/2012/05/16/rally-at-afscme-negotiations-may-18-4-pm-water-board-bldg/

http://voiceofdetroit.net/2011/12/19/11652/

http://voiceofdetroit.net/2011/11/16/union-challenges-cox%e2%80%99s-water-dept-takeover-order/

http://voiceofdetroit.net/2011/11/10/cox-axes-detroiters-control-over-water-department/

http://voiceofdetroit.net/2011/10/03/council-hires-attorney-to-fight-cox-water-takeover-as-public-calls-for-%e2%80%98civil-disobedience%e2%80%99/

http://voiceofdetroit.net/2011/10/01/fox-2-news-colludes-with-judge-cox-in-water-takeover/

http://voiceofdetroit.net/2011/09/19/local-207-presents-solutions-for-watersewerage-problems/

http://voiceofdetroit.net/2011/09/14/sean-cox-right-wing-affiliations/

http://voiceofdetroit.net/2011/09/14/residents-demand-that-city-council-fight-water-takeover/

http://voiceofdetroit.net/2011/09/12/911-in-detroit%e2%80%94terrorist-judge-cox-strikes-water-department/

http://voiceofdetroit.net/2011/02/22/utility-privatizer-running-water-department/

http://voiceofdetroit.net/2011/02/13/judge-cox-mayor-bing-suburban-leaders-conspire-in-water-takeover-violate-city-charter/

http://voiceofdetroit.net/2011/02/06/detroit-people%e2%80%99s-control-of-water-the-only-answer/

http://voiceofdetroit.net/2011/01/07/the-feikens-enterprise/

http://voiceofdetroit.net/2011/01/06/history-of-the-feikens-enterprise/

http://voiceofdetroit.net/2010/12/26/one-man%e2%80%99s-war-against-detroit-contractor-corruption/

 

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CITY WATER WORKERS STRIKE ‘FOR DETROIT’S FUTURE;’ CALL FOR PICKET LINE SUPPORT BEGINNING OCT. 1

Detroit Wastewater Treatment plant workers outside the plant’s main gate Sunday afternoon, Sept. 30, 2012.

  •  Union locals call for mass community support on picket lines
  • Will top union leadership join the battle?

By Diane Bukowski 

September 30, 2012 

DETROIT – Declaring they are battling for the future of Detroit, workers at the city’s Wastewater Treatment Plant (WWTP) walked off the job at 10 a.m. today. The afternoon shift, scheduled to start at 3:30 p.m., was shut down as well.

Local 207 members discuss strike strategy.

The Detroit Water and Sewerage Department (DWSD) serves 40 percent of Michigan’s residents, and is the third largest system in the country. The wildcat exploded after Locals 207 and 2920 0f the American Federation of State, County and Municipal Employees (AFSCME) took strike votes last week. Local 207, with 950 members, is the largest city public worker union.

“It’s about time the city stood up,” said A.B., who has worked at the plant for 11 years. “Enough is enough! The water department is the only entity in the city making money. But they came to an 80 percent Black city, where police and fire and water have become the new Big Three, and said they want to put 1,000 more people out of work, just adding to the blight in Detroit.”

WWTP workers picketing at the back gate including father and his baby.

Fifty-seven percent of Detroit’s children now live in poverty, according to A Kids Count study by the Annie E. Casey Foundation released Sept. 26.

But two weeks ago, the Detroit Water Board approved a $46 million contract with the EMA Group to eliminate 81 percent of DWSD jobs. Rumors then circulated that U.S. District Court Judge Sean Cox, who oversees the WWTP under a federal consent decree, planned to issue an order Oct. 1 barring a strike.

Worker at front gate denounces EMA, which wants to cut 81 percent of DWSD workforce, has caused disastrous floods in Toronto due to sewage backups.

So WWTP workers jumped the gun.

Local 207 Unit Chair Lakita Thomas said, “All the workers except for two were ready to walk out, and then those two changed their mind and came out with us too.”

The WWTP parking garage was empty, with “On Strike” signs posted on its locked gates.

Workers said the shutdown of the WWTP, which extracts sewage from water returning from tens of thousands of households before it enters the Detroit River,, will give the DWSD, EMA and Cox a taste of what it will be like if 81 percent of the workforce is cut.

“We went on strike today because we want that little dictator Sean Cox out of Detroit,” Local 207 steward Susan Ryan said. “We want DWSD under the control of the city. We are fighting for Detroit and all of its people. Everybody is welcome to join us on the picket line.”

“”A little child shall lead them:” workers picket at back gate of WWTP Sept. 30.

Local 207 Secretary-Treasurer Mike Mulholland said local members went to churches across Detroit this morning to mobilize support, and passed out fliers at a meeting of the Detroit General Retirees Sept. 25.

“This is just as much a battle for the retirees as it is for us, because under Detroit’s Public Act 4 consent agreement, their health care and other benefits are about to be cut. We all need to stand together in this fight,” Mulholland said.

Malcolm Garrett said, “We don’t want any more takeovers in Detroit. We’re sick and tired. We want them to leave Belle Isle alone and stop privatizing.”

Worker demands stop to takeover of Detroit, the world’s largest Black-majority city outside of Africa.

Detroit Mayor Dave Bing has signed a no-rent 90-year agreement to “lease” Belle Isle, the largest island park in the U.S., to the state. It has not yet been approved by City Council. The city is shutting down its 187-year-old Health Department this week, handing $60 million in federal grant funds over to a newly-concocted private “Institute for Population Health.”

It is also closing two other federally-funded departments. Over the last three decades, Detroit has privatized Detroit General Hospital, the Detroit Zoo, Cobo Hall, the Institute of Arts, Eastern Market, and many other city assets.

Workers picketed at all three main gates of the WWTP, sending reinforcements as needed to other gates.

Nicole Spicer with daughter Mya and two women co-workers on picket line.

At the front gate, Nicole Spicer sat with her two-year-old daughter Mya and two other women workers on the picket line.

“They’re trying to put us all out of a job,” she said. “We will not stand by quietly while they give our jobs to contractors. We work in the city, and we live in the city.”

At the back gate, a mother who brought her children said, “People who work here have been committed to their jobs, and to providing good water for everyone, but they want to take our pensions, and cut 81 percent cut of manpower. The people who are doing this don’t know much about DWSD anyway. It’s been 10 years since we’ve had a raise, but they keep raising water rates, and they want us to pay more for health care. Most people out here don’t make any more than $15,000 to $18,000. We can barely feed our families now!”

One worker carried a sign declaring, “EMA failed in Toronto, wasting $1.2 billion and causing flooding.”

Toronto subway’s Union Station under water in June, 2012.

The city of Toronto hired the EMA Group in 1996 to revamp its water department, and eventually cut large numbers of its sewage plant workforce.  In June of this year, Toronto’s subways and many neighborhoods experienced massive flooding due largely to sewage back-ups during a rainstorm. Such floods have been commonplace since the cutbacks. Toronto voted to spend $1.2 billion in 2005 on the system, but EMA’s plans have not worked.

Workers from other unions came out to support the DWSD workers as well as word of the walk-out broke.

Picketers cover street entrance to back gate. Plant security threatened to have them arrested, but Detroit police on the scene took no such action.

“This strike is happening in the wake of the victory of the Chicago Teachers Union,” said Martha Grevatt, of UAW Local 869. “It’s another example of workers standing up, not only for their jobs, but against the banks and corporations. Whether you work for a private company or in the public sector, your bosses are part of the 1 percent.”

Local 207’s newletter, “The Organizer,” said, “We need to send the message to the power that be, early and often during this strike, that the people of Detroit are tired of being dictated to, and victimized by the rich and powerful, and that we intend to win this strike.”

A spokesman for Detroit Mayor Dave Bing said in a statement, “There has been no interruption of water service. Other than that, we have no comment at this time.”

Al Garrett, President of Michigan AFSCME Council 25, threatens to “shut the city down” during Council meeting April 2.

Al Garrett, President of Michigan AFSCME Council 25, told Detroit’s City Council on April 2 that he would “shut the city down” as AFSCME did in during a city-wide strike in 1986 if the Council voted for the PA 4 consent agreement. It did so anyway, 5-4, on April 4.

On  July 17 , using the consent agreement, Bing and the state-appointed, corporate-dominated “Financial Advisory Board” imposed unilateral  “City Employment Terms” on the city’s workforce. The “CET” applied to every department except  DWSD, which Cox ordered to conduct separate negotiations, and the Detroit Department of Transportation, which is bound by federal regulations against union-busting.

Garrett was not available for comment at press time. It remains to be seen if he will make good on his promise, and whether the leadership of the union movement across Michigan will join the battle.

The Wastewater Treatment Plant is located at 9300 W. Jefferson in downriver Detroit. Workers begin picketing at 6 a.m. every day and throughout three shifts. For information on how to support the strike, call 313-995-5691, 313-919-5011, or 313-492-9308. 

See next post  for Local 207’s statement on the strike and call for support.

Empty parking garage at Wastewater Treatment Plant.

 

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‘THE DETROIT WATER WORKERS STRIKE MUST WIN’

Local 207 workers on strike Sept. 30, 2012.

 

WWTP workers keep front gate shut down.

 

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DETROIT CITY RETIREES MOBILIZE TO STOP PENSION TAKEOVER

Detroit General Retirement System board held special meeting for retirees Sept. 25, 2012 to educate them on pension rights and upcoming threats.

 


_________________________________________________________

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JUDGE MAY DISMISS CASE AGAINST COP WHO KILLED AIYANA JONES, 7, AFTER CHILD’S FATHER IS TRIED

14-year-old Rafael Jones leads march for Justice for Aiyana and freedom for Charles Jones April 23 at Frank Murphy Hall in downtown Detroit, with his grandmother Mertilla Jones (l), and aunt LaKrystal Sanders (r) holding signs behind him.

Apparent collusion between court, attorneys for both sides, to get cop off

By Diane Bukowski 

September 29, 2012 

Killer cop Joseph Weekley, Jr (l), Aiyana Stanley-Jones (r); below is expert depiction of Aiyana’s killing by Weekley as she slept with her grandmother.

DETROIT – Wayne County Circuit Court Judge Cynthia Gray Hathaway delayed  ruling on a motion to dismiss charges against Detroit Officer Joseph Weekley, Jr., killer of Aiyana Stanley Jones, 7, during a hearing Sept. 28, until after the child’s father is tried for first-degree murder in another case.

Weekley faces involuntary manslaughter and firearms charges for shooting Aiyana through the head after a Detroit police “Special Response Team” conducted a military-style raid on her home in a poor east-side Detroit neighborhood March 16, 2010. A&E’s “First 48” was filming the midnight raid for national television.

Instead, world-wide media told the story of a little girl’s killing by Detroit police.

Charles Jones with his only daughter Aiyana. Jones also has six younger sons.

Weekley is free on personal bond, while Aiyana’s father Charles Jones and Chauncey Owens have been remanded without bail, charged with killing 17-year-old Je’Rean Blake two days earlier.  Wayne County Assistant Prosecutor Robert Moran is prosecuting both Weekley and Jones, in what some have termed a “conflict of interest.”

“It took him a few seconds to murder my baby in front of my eyes,” the child’s grandmother Mertilla Jones wept outside the court after the motion hearing. “But two and a half years later, they haven’t tried him yet. Instead they’re going after her father who’s still grieving for his child.”

Jones was sleeping on a front-room couch with Aiyana when police lobbed an incendiary grenade through a window overhead, and watched as Weekley shot her granddaughter to death.

Joseph Weekley at arraignment. He lives in wealthy Detroit suburb of Grosse Pointe.

During the hearing, the diminutive Weekley sat stone-faced in the courtroom and avoided looking at Jones as she passed by.

“They arrested me and held me in jail for days,” Jones said, “but the man who killed my baby hasn’t spent a minute in jail.”

Police claimed Jones had “interfered” with Weekley, but never charged her. According to witnesses, after racing Aiyana’s body out of the house, they terrorized the rest of the family, including infants and children, before arresting Owens. He lived in a flat upstairs from the Jones family.

Weekley and Charles Jones were arrested a year-and-a-half later, after a prolonged Michigan State Police investigation and secret one-man grand jury proceedings in front of Wayne County Circuit Court Judge Timothy Kenny. Kenny charged Weekley, while Wayne County Prosecutor Kym Worthy charged Jones and Owens.

Judge Cynthia Gray Hathaway

Hathaway, the prosecution and the defense appeared to collude during the Sept. 28 hearing.

“I’ve discussed the situation at length with Officer Weekley, and he absolutely agrees with me and quite frankly with the prosecutor and the court that his trial should be delayed,” defense attorney Steven Fishman said.

Moran had just explained that the prosecution is waiting for a ruling from the Michigan Supreme Court in Jones’ case. He and Owens face trial before Wayne County Circuit Court Judge Richard Skutt, who earlier barred the use of hearsay testimony by “jail-house snitch” Jay Schlenkerman against Jones.

Robert Moran

Moran at first called the Blake killing case a “companion case,” then corrected himself. The companion case in Weekley’s trial is that of Allison Howard, an A&E producer charged with perjury and interfering with an investigation of Aiyana’s killing.

Skutt said the testimony could be used against Owens, who Schlenkerman cited as his source, but not against Jones, under Michigan Rules of Evidence. He said that Schlenkerman, a six-time felon with a history of severe domestic abuse and drunk driving, appeared to have constantly prompted Owens to obtain an alleged statement that Charles Jones gave him the gun used to kill Blake.

Steven FIshman

The prosecution asked the Michigan Court of Appeals for leave to appeal. Instead, an appeals court panel consisting of Judges Michael Talbot, a member of the right-wing Federalist Society, Kurtis Wilder and Kirsten Kelly summarily reversed Skutt’s decision Aug. 13.

Jones’ attorneys, from the offices of nationally-known attorney Geoffrey Fieger, have asked the Supreme Court for leave to appeal that ruling, and according to Moran received a stay pending their decision.

“Our intent was to try that case first anyway,” Moran said. “The appellate office says they expect the Supreme Court to deny the application by the end of the year, since they don’t usually get involved in pre-trial proceedings.”

Hathaway held a lengthy secret sidebar with both Moran and Fishman prior to her ruling.

Aiyana’s aunt LaKrystal Sanders, grandmother Mertilla Jones, and mother Dominika Stanley at national police brutality coalition meeting in May.

“I basically called this pre-trial today to admonish both the prosecution and defense,” she said, although the hearing was listed in court records as a motion hearing. “ I don’t see how I can adequately decide on [the motion to dismiss] without receiving the indictment discovery, which is two to three feet high. I’m going to need time to review this material.”

She indicated that it would be best to postpone her ruling on the dismissal until after the Jones/ Owens trials, since that would give her time to review the discovery materials.

Hathaway has had the cases against Weekley and Howard since November 11, 2011.

Meanwhile, she scheduled another pre-trial hearing for Weekley for Oct. 29, after pre-trial hearings in the Jones/Owens case are held.

Jones’ trial had been set for Oct. 22.

In a civil case brought against him by Aiyana’s family members, Weekley’s attorneys are trying to delay that trial until after the Jones/Owens’ criminal trial. On Oct. 11, at 9 a.m. Wayne County Circuit Court Judge Daphne Means Curtis will hold a hearing on a defense motion for a stay of proceedings. A status conference is set for October 26, with trial scheduled for November 11, 2012.

Curtis earlier denied a defense motion for a “protective order” to seal records in the case, including depositions of the officers involved in the raid. She ruled that those depositions should go forward on the completion of the State Police investigation. It is unclear from court records, however, if the officers have been deposed. Defense attorneys from the firm of Plunkett & Cooney, paid by the City of Detroit, have however deposed many of those in the Jones family, according to Mertilla Jones.

Sky banner flown by the Justice for Aiyana Jones Committee across Detroit on the first anniversary of her death, May 16, 2012.

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PEOPLES’ RALLY: HANDS OFF BELLE ISLE! COUNCIL HEARING THURS. OCT. 4 1 PM

Phyllis McMillon, president of AFSCME Local 452, who represents city workers on Belle Isle, tells rally, Bing told a lie when he said we have 36 workers here. There are only four permanent workers, the rest are seasonal from April to September. The seasonals are being laid off Sept. 23, and the four permanent workers have been re-assigned even though the lease deal is not approved.”

  •  Detroiters rally on island to save largest  public river park in country
  • Union president says city workers re-assigned without lease approval
  • Councilman Kwame Kenyatta calls for public to weigh in at committee meeting Thurs. Oct. 4, 1 p.m.

By Diane Bukowski 

September 24, 2012 

(Note: story upcoming on Detroit City Council hearing on Belle Isle takeover Sept. 25, 2012, with analysis. Meanwhile, Councilman Kwame Kenyatta has set public discussion on the Belle Isle takeover for his committee meeting October 4, 2012.)  

DETROIT – Grass roots Detroiters, many from community groups, turned out Sept. 21 to save their beloved Belle Isle from a state takeover Sept. 21, rallying in front of a bright yellow banner declaring “Hands Off Belle, No More Takeovers, Occupy Detroit,” affixed to Picnic Shelter #2.

They were also mobilizing to defeat Public Act 4, popularly known as “The Dictator Act” in the coming November elections, vowing to go door-to-door in the community to educate people about the dangers of PA 4. It led to the April 4 “Fiscal Stability [consent] Agreement” which has stripped Detroit’s elected officials of most of their final powers. Even if Detroit’s City Council votes down a proposed state lease of Belle Isle, their decision can be overridden under that agreement, contrary to City Charter provisions.

Punco of the Black Motorcycle Riders Club pull up to rally, is greeted by Valerie Glenn of Free Detroit-No Consent.

“This is family here, real Detroiters,” declared Debra Taylor, who chaired the rally. “We purposely pulled together just grass roots folk who love our city and Belle Isle.”

They swelled the ranks to at least 100 on a rainy day. Among them was “Puncho,” who roared in on his brilliant white and chrome bike, representing the Black Motorcycle Riders Association. Although state proposals for an annual Belle Isle entry fee say that pedestrians, bicyclists and boaters can enter the island free, all vehicles including motorcycles would have to have a $10 annual state “Recreation Pass” to get on the island.Alert icon

Classic Chevy Caprice on island.

There are further fears that a proposed “public safety” force on the island, comprised primarily of state troopers including park rangers and conservation officers not familiar with Detroit, may hinder residents like Puncho and young Detroiters with their skillfully renovated classic cars from the 1960’s, 70’s, and 80’s, from enjoying the publicly-owned mecca on balmy summer week-ends.

(Great video of youth with classic cars on Belle Isle, motorcycles, and Nation of Islam brothers selling “The Final Call” and fruit, set to music; click on http://www.youtube.com/watch?v=8FbsooO0IFI&list=LPGU2BYYLCpqA&index=9&feature=plcp.)

“We must draw a line in the sand,” Monica Patrick Detroit No Consent told the crowd. “This is a family meeting. We will not tolerate tyranny in our own city.”

Beach on Lake Michigan at Jean Klock Park in Benton Harbor.

Cecily McClellan of Free Detroit No Consent compared the Belle Isle proposal to what has happened in Benton Harbor, where corporations including Whirlpool took over land adjacent to the publicly-owned Jean Klock Park, which has a gorgeous beach with a spectacular view of Lake Michigan.

“Benton Harbor residents have been impoverished, unemployed, and foreclosed on since the takeovers there,” McClellan, who has spoken at rallies in the small majority-Black city on Michigan’s west coast, said.

Some of Belle Isle ralliers, including Puncho, who denounced Mayor Dave Bing.

“They didn’t get bailed out like the banks did,” she said. “Here in Detroit, we have lost Cobo Hall and the water and sewerage department is facing an 81 percent cut in jobs. People are being laid off, shrinking our tax base. The same thing has happened with the Public Lighting Department, lights are out in most of our neighborhoods while we pay DTE to power them. It’s being done on purpose to set us up to fail. They’re doing the same thing on Belle Isle, laying off the staff who maintain it. Detroiters have voted millions in bonds for Belle Isle, but for some reason we can’t find it. Who wants to own Belle Isle, if you have no control or gain no benefit from the island?”

Phyllis McMillan, president of Recreation Department Local 542 of the American Federation of State, County and Municipal Employees , gave an eye-opening report on the reality of what has been happening to the island.

Grass roots crowd listens to speakers at Belle isle rally 9 22 12.

“This is no new thing,” McMillan said. “I’m here at 6 a.m. every morning, but we have no equipment to clean the island. We do the best we can anyway, even bending and stooping to pick up trash. Bing told a lie when he said we have 36 workers here. There are only four permanent workers, the rest are seasonal from April to September. The seasonals are being laid off Sept. 23, and the four permanent workers have been re-assigned even though the lease deal is not approved.”

Rally included rap.

She said Detroit City Councilman Andre Spivey was on the island earlier in the week to take a tour before dealing with the state proposal.

“He crouched down when he saw me because he didn’t want to hear the truth,” McMillan said. “The state’s lying in their proposal. They’re not going to put any more money into an island we own. None of that money is coming to the city, just like happened at the DIA, the Science Center, the Historical Museum, and Cobo Hall. They want Compuware to take over our payroll system.”

Monica Patrick speaks: Belle Isle for our children!

McMillan said Ingham County Circuit Court Judge Paula Manderfield invalidated two sections of the Detroit consent agreement in her ruling on a lawsuit by AFSCME Sept. 12, Sections 4.1 and 4.3, restoring collective bargaining rights that would force the city to negotiate terms of any changes to the Belle Isle workforce.

Although she said she would issue a written stay of her order while the City appealed, according to state records, she has not done so yet. But Mayor Dave Bing and Michigan Governor Snyder are proceeding as if she never ruled.

(Click on Manderfield decision 9 12 12, also Ingham judge strikes down 2 parts of Detroit consent agreement with state. )

Crowd listens to speakers.

As wind gusts and rain brought an end to the rally Attorney Jerry Goldberg of the Moratorium NOW! Coalition wrapped up it, pinpointing the devil behind the scenes.

“Driving to Belle Isle today, I thought of the recent report by the Pew Center which shows that 57 percent of Detroit’s children are living in poverty,” he said. “Detroit families need every single penny to survive and must not be charged to enter their own island. The banks have destroyed our neighborhoods with illegal mortgages and are holding the city hostage with billions in debt. Detroit paid $597 million to them just this past year. Public Act 4 is a bankers’ bill—it busts union contracts, but the banks get guaranteed payment of their debts. The fight against Public Act 4 is one step in the struggle, but we must go beyond that to take back our city, and force the state and the banks to pay reparations to Detroit.”

Jerry Goldberg, Cecily McClellan, Chris Griffiths

The rally was sponsored by Free Detroit-No Consent, Hood Research, and We the People of Detroit.

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DETROIT WATER/SEWER WORKERS AUTHORIZE STRIKE, ASK FOR SUPPORT FROM ALL CITY WORKERS, COMMUNITY

Worker marching with others at Coleman A. Young Center Aug. 2, 2012. Local 207 has been conducting periodic informational pickets to mobilize its members for the possibility of a strike.

VOD UPDATE SEPT. 27, 2012: Detroit’s AFSCME Local 207 , representing workers at the Detroit Water & Sewerage Dept., voted to authorize a strike yesterday, with 64 percent of members voting “YES,” according to union officials. Local 2920, representing clerical and other DWSD workers,  authorized a strike Sept. 25  if ongoing contract negotiations fail.  Union leaders are still negotiating, but have said that negotiations are so far not productive.  The Detroit Water Board recently approved a $46 million second-stage contract with the EMA Group, which involves cutting 81 percent of the DWSD workforce. The locals are asking all city workers to join to fight the city’s nullification of their union contracts under the Detroit PA 4 consent agreement, and severe lay-offs, wage and benefit reductions, and entire department cuts that have resulted. They are also asking for broad community support.

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DETROIT DWSD DEBT SHOWS WALL STREET NEVER LOSES ON BAD SWAPS

Marchers in downtown Detroit May 9, 2012 demand cancellation of Detroit’s debt to the banks.

News From Bloomberg

By Darrell Preston dpreston@bloomberg.net

September 13, 2012

JPMorgan Chase & Co. (JPM), the third-largest muni-bond underwriter, stood to gain more than just its share of $7.8 million in fees by helping Detroit’s water and sewer (87962MF) unit issue new debt after the city staved off insolvency.

AFSCME Local 207 Secretary-Treasurer Mike Mulholland pickets with large group of DWSD workers at DWSD Huber plant Aug. 15, 2012.

The municipal department’s $659.8 million June bond sale let it pay more than $300 million to banks, including JPMorgan, to end interest-rate swap agreements while raising its borrowing cost. The utility, with 1,978 employees, plans to fire four of every five workers, while debt service has climbed to more than 40 percent of revenue, internal documents show.

As cash-strapped cities from San Bernardino, California, to Harrisburg, Pennsylvania, grapple with insolvency, the Detroit example shows that Wall Street banks never lose. That’s especially true when it comes to arranging transactions to escape distressed debt and swaps initially sold by the lenders. Along with the fees, the deal helped banks such as UBS AG (UBSN), once an underwriter of the debt, recover payments to terminate swaps.

“Interest-rate transactions that have gone horribly wrong”

During an orgy of Wall Street predatory lending before the big bust in 2008, Detroit also borrowed $1.5 BILLION in pension obligation certficates from UBS and Siebert, Brandford and Shank. It has several times defaulted on the debt, and ended up having to commit to another $1 billion to UBS to stave off complete economic collapse, according to a report from the Detroit Financial Review Team appointed by Michigan Governor Rick Snyder under Public Act 4. The Swiss-based UBS is one of six banks being sued by Britain, the city of Baltimore, and other municipalities across the U.S. in the LIBOR interest-rate fixing scandal.

“They’re paying huge amounts of money for interest-rate transactions that have gone horribly wrong,” said Michael Greenberger, an expert on derivatives at the University of Maryland’s law school. “If this is a strategy that makes sense to do, then you do it, and you hire a banker. You can’t just walk to the corner store to underwrite bonds.”

Costly Swaps

Municipal borrowers from the Metropolitan Water District of Southern California (MWDSCZ) in Los Angeles to Italian towns and Harvard University in Cambridge, Massachusetts, have paid billions of dollars to banks to end interest-rate swaps that didn’t protect taxpayers from unforeseen changes in interest rates. In the bets on borrowing costs, a municipal issuer and another party exchange payments tied to interest-rate indexes.

DWSD bond graph from Bond Buyer magazine.

Obligations linked to swaps initially sold by Wall Street banks as hedges to save tax dollars have cost the Detroit utility more than $500 million to unwind, an amount added to its debt. Before paying $314 million to end some of the agreements in June, it spent $222 million raised in a December 2011 bond sale to end others.

The money used to unwind the swaps would almost cover the utility’s $571.7 million in planned capital spending for the five years through June 2016, according to bond documents. Or it would be enough for the sewer system’s $519.8 million fiscal 2013 budget, with millions to spare.

Separate Entity

Part of Aug. 15, 2012 protest at DWSD Huber facility.

The department, while a part of a city that’s under state fiscal oversight, operates as a separate entity with its own board and serves areas outside the municipality. It provides water to 3.8 million people in Detroit and 124 other communities, as well as sewerage to 2.8 million people in the city and 76 more cities and towns.

Beyond the utility’s cost to end the swaps, it bought back auction-rate securities at a premium from proceeds of its bond sale in June and is paying a higher interest rate on the debt it sold to raise the money for the purchases. Trading in the bonds shows that the borrowing through a deal lead-managed by Goldman Sachs & Co. (GS) cost the city more than was necessary, because the price was too low.

AFSCME Local 207 President John Riehl (l) and Vice-President Lakita Thomas (r) consult with another member during protest at Coleman A. Young Municipal Center. Locals 207 and 2920 are taking strike votes Sept. 25 and 26.

“Detroit has a bad history in the bond market,” said John Riehl, president of the local public-workers union and a senior sewage plant operator for the utility. “They’ve done some foolish things over the years.”

No Comments

Naomi Patton, a spokeswoman for Mayor Dave Bing, didn’t immediately respond to a request for comment on Detroit’s borrowing history and referred questions about the June sale to utility officials.

Matthew Schenk, the utility’s chief operating officer, and James George, assistant finance director, didn’t respond to at least two telephone calls seeking comment on the deals. Tiffany Galvin, a Goldman Sachs spokeswoman, and Elizabeth Seymour of New York-based JPMorgan, also an underwriter, both declined to comment.

Karina Byrne, a UBS spokeswoman, didn’t respond to a request for comment. Another swap counterparty whose agreement was terminated in June was Loop Financial Products.

The transaction in June added to the utility’s financial pressures at a time when Detroit was trying to avoid insolvency that could have forced it to default on its debt. The city’s predicament added to the department’s reasons to get out from under the swaps.

Termination Triggers

Under terms of the derivative deals, appointment of a review team by the state to oversee the city’s finances was one event that could trigger termination and require the utility to make payments to unwind its swaps, according to bond documents. Continue reading

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SPAIN: PROTESTERS STORM PARLIAMENT TO STOP BANKS’ AUSTERITY MEASURES

Spaniards rage against austerity near Parliament

By ALAN CLENDENNING

Associated Press / September 25, 2012

MADRID (AP) — Spain’s government was hit hard by the country’s financial crisis on multiple fronts Tuesday as protestors enraged with austerity cutbacks and tax hikes clashed with police near Parliament, a separatist-minded region set elections seen as an independence referendum and the nation’s high borrowing costs rose again

More than 1,000 riot police blocked off access to the Parliament building in the heart of Madrid, forcing most protesters to crowd nearby avenues and shutting down traffic at the height of the evening rush hour.

Police used batons to push back some protesters at the front of the march attended by an estimated 6,000 people as tempers flared, and some demonstrators broke down barricades and threw rocks and bottles toward authorities.

Protestors march to the parliament against austerity measures announced by the Spanish government, in Madrid, Spain, Tuesday, Sept. 25, 2012. Spain’s Parliament has taken on the appearance of a heavily guarded fortress with dozens of police blocking access from every possible angle, hours ahead of a protest against the conservative government’s handling of the economic crisis. The demonstration, organized behind the slogan ‘Occupy Congress,’ is expected to draw thousands of people. It is due to start around 1730 GMT Tuesday. Madrid authorities said some 1,300 police would be deployed. The protestors call for Parliament to be dissolved and fresh elections held, claiming the government’s austerity measures show the ruling Popular Party misled voters to get elected last November. (AP Photo/Andres Kudacki)

Television images showed officers beating protesters in response, and an Associated Press television producer saw five people dragged away by police and two protesters bloodied. Spanish state TV said at least 28 were injured, including two officers, and that 22 people were detained. Independent Spanish media reported higher numbers that could not immediately be confirmed.

Spanish police haul a protester away.

The demonstration, organized with an ‘‘Occupy Congress’’ slogan, drew protesters from all walks of life weary of nine straight months of painful economic austerity measures imposed by Prime Minister Mariano Rajoy and his solid majority of lawmakers. Smaller demonstrations Tuesday attracted hundreds of protesters in Barcelona and Seville.

Angry Madrid marchers who got as close as they could to Parliament, 250 meters (yards) away, yelled ‘‘Get out!, Get out! They don’t represent us! Fire them!’’ Continue reading

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