Detroit council to focus on its role, won't fight EM

Detroit — City Council members say they're focused on carving out their role under an emergency financial manager after the panel decided it will not pursue a legal challenge to Gov. Rick Snyder's selection of bankruptcy attorney Kevyn Orr.

Councilman Kenneth V. Cockrel Jr., in a statement released Thursday afternoon, said while he believes the appointment of an emergency financial manager is "premature," Snyder's announcement of Orr being named as the person to fill that role "means his arrival is imminent."

"Therefore, I believe that Council should now seek to do everything in its power to assist Mr. Orr in completing his tasks in an expedient manner," Cockrel said in the released statement. "I believe this is critical for the sake of preventing an EFM from having a long stay."

Orr will begin March 25 and be paid $275,000 a year and have an "open-ended" contract under the new emergency manager law. State officials hope he can complete the job within 18 months. Snyder spokeswoman Sara Wurfel said Orr will begin his emergency financial manager job on March 25 and then becomes emergency manager under Public Act 436 on March 28 when the new law takes effect.

Council President Charles Pugh through his office staff said: "it was good to hear that (Orr's) willing to hear all the voices and realizes one man cannot run this city alone."

During a press conference Thursday in Cadillac Place in the New Center area, Orr said he hoped to avoid confrontation with the city's unions and council members.

"Don't make me go to the bankruptcy court … I won't enjoy it," Orr said.

Earlier Thursday, Pugh told reporters that the council had a "spirited" discussion on a court challenge, but "we are not going to proceed legally, at the advice of our lawyers."

"There are more ways to fight than just with a lawsuit," Pugh said. "The reality is there are a multitude (of lawsuits) already ongoing anyway. The question is: are we going to join the flurry of lawsuits and at this time we're not, as a body. There are other ways to fight. Fighting for a significant role in the city that we love, in the city that we were elected to lead: That's our next fight."

Council met in a closed session Thursday for just more than an hour before the majority of the panel did not support a request to retain outside legal counsel and seek an appeal of the appointment. The measures were then withdrawn.

Council members Brenda Jones, Kwame Kenyatta and Saunteel Jenkins were not at the table Thursday.

"We have fought to make sure that City Council will have a significant place moving forward on how this city is developed," Pugh said, adding that state Treasurer Andy Dillon has said he wants council and the mayor involved in decision-making under emergency management.

"Putting together a budget is not just financial, putting together a budget is about the priorities of the community. That's some of the many things the mayor and council should be doing," Pugh said. "It's important to protect the citizens and make sure the public dollars are not being spent behind closed doors. Citizens need a voice at the table with how our money is being spent. Important decisions on the city's future shouldn't be made by one person who nobody knows."

Shortly after council's meeting, Snyder held a media briefing at Cadillac Place on Grand Boulevard, along with Mayor Dave Bing and Orr, a bankruptcy attorney, to talk about his decision.

Orr at the press briefing said "I feel compelled to do this job," and that he looks forward to working with city administration and council.

The Local Emergency Financial Assistance Loan Board, a panel consisting of three Snyder appointees, then approved the emergency financial manager request at a meeting in Lansing.

The governor received a report Wednesday from Chief Deputy State Treasurer Mary MacDowell detailing an appeal council members made in an effort to stop the emergency manager appointment at a hearing Tuesday in Lansing. During the hearing, council advocated for an expanded consent agreement with detailed milestones to correct its financial troubles. The city has been operating under a consent agreement with the state since April.

On March 1, Snyder declared Detroit was in a financial emergency and needed an emergency manager. But he gave city leaders 10 days to appeal his finding, as required by the 1990 law.Under a 1990 law, the loan board appoints emergency financial managers for distressed cities and school districts, but the governor is usually involved in the interviewing process.

Cockrel added the decision by treasury to deny City Council's appeal and Orr's appointment are disappointing but not unexpected.

"I had no delusions that the appeal process would produce a different outcome," he said, adding he did vote in support of the appeal because it was an option under law and wanted to clarify the facts.

Cockrel said it appears that an appeal in court could only be filed by the city's law department at the direction of Bing. Beyond that, it would be costly and drawn out and it would likely be unsuccessful.

Council members Andre Spivey and James Tate talked earlier Thursday about their hopes for a partnership with the emergency manager.

"There's still a lot of uncertainty," Spivey said, adding he doesn't know his first steps or the specific role of council.

"Council will remain in place and it's up to us to craft what our role will be under the emergency financial manager. We still have a job to do."

Spivey said the goal is to get the emergency financial manager in, turn a corner and get him out.

He said he will not leave his post on council.

"I will stay. I'm here," Spivey said. "I'm looking forward to getting petitions signed to move forward for the next term."

Tate said the city, community and state need to work collectively to move forward and tackle important issues, including crime. Tate has said council sought the appeal hearing this week to clarify the record and mischaracterizations in the state review team's report on Detroit's finances.

"What I would like to see is collaboration and cooperation," Tate said, noting he plans to seek a meeting with Orr.

Also on Thursday, an Ingham County circuit judge refused to hold a hearing on a lawsuit from Detroit activist Robert Davis seeking to head off Snyder's appointment of an emergency manager for Detroit. The suit was filed byCitizens United Against Corrupt Government headed by Davis.

Orr, 54, helped lead Chrysler through its 2009 bankruptcy and is a partner at the Jones Day law firm in Washington, D.C., which he now plans to leave.

cferretti@detroitnews.com

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