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Topic: Why Flint grants administration failed
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untanglingwebs
El Supremo

comment 7: If the City repairs the collapsing foundation for project number 1209, (Court Street Village) it should ensure that the program funds used for the project were only for necessary and reasonable costs and that the home meets property standards when the project is completed. The City did not include the source of the $28,000 that might be used to repair the collapsing foundation. If the City uses Program funds to repair the collapsing foundation, it should also ensure that the Program funds are not used for items that were previously completed using Program funds. If the City reimburses its treasury account $26,300from non-federal funds for rehabilitation costs associated with project 1209, this should resolve the issue and recommendations cited in this audit report applicable to the project.

comment 8: If the City sufficiently funds and completes the project, it should ensure that the program funds used for the project were only for necessary and reasonable costs,the additional Program funds are not used for items that were previously completed using Program funds,and that the home meets property standards when the project is completed.
Post Sat Apr 14, 2018 3:10 pm 
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untanglingwebs
El Supremo

comment 9. HUd's regulation at 24 CFR 92.503(b)(2) state that any Program funds invested in a project that is terminated before completion, either voluntarily or otherwise , must be repaired by a participating juisdiction. None of the homes had been fully rehabilitated and sold or rented to low ir moderate income households. Therefore, the City is required to reimburse its treasury account for the entire $126,751 in Program funds used for the acquisition and/or rehabilitation costs associated with the Flint West Village and Greaster Eastside projects.

Comment 10: The City did not provide documentation to support that it cancelled homebuyer acquisition and rehabilitation project number 1983 in HUD's System and decommitted $94, 356 in Program dunds remaining for the proect.


comment 11: The oldest disbursement associated with the City's inappropriate use of the $88, 943 in Program funds occurred in December 2001.
Post Sat Apr 14, 2018 3:22 pm 
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untanglingwebs
El Supremo

MOnitoring Review

The City was required to commit $303,385 in HOME funds between March 31, 2011 and July 31, 2011 in order to meet the commitment requirement.

The Integrated Disbursement and Information System (IDIS) is used to track activities, draw down funds and reduce staff time to prepare reports.

The HOME Open Projects Reports dated March 31, 2011 showed that Flint had 67 open HOME projects,50 of which were initially funded between 1996 and 2009.Of particular concern are the homeowner rehabilitation projects that were still open and were set up in 2006.

Finding #1 No completion data entered
Data entered into IDIS and in the HOME Open ProjectsReport identified 41 projects with fina ldraw downs that had not had their completion data entered into the IDIS within the 120 day limit.
Post Sat Apr 14, 2018 3:39 pm 
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untanglingwebs
El Supremo

The 41 had previously been cited but never corrected. HUD found an additional 18 projects that were noncompliant.

(HOME regulation 24 CFR 92.502(d)(1).

DCED stated causes because it cannot close the projects because the city created several IDIS identification numbers for the same address and IDIS will not allow them to be combined.

Staff had no explanation why they had not followed through on th August 2010 contact with the IDIS Technical Assistance Unit (TAU) to reolve the issue. The city had prepared a prliminary list of projects to be reconciled that only included 23 projects and could not explain why the "could not close" list was not addressed.
Post Sat Apr 14, 2018 3:49 pm 
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untanglingwebs
El Supremo

Concern #1 Slow individual Projects


As of April 1, 2011, the City had 18 projects that were open with no final draw. Of these 18...15 projects were committed on or before December 31,2009, with one set up in 2006 , 3 set up in 2006.3 set up in 2007 and 6 set up in 2008.

The City stated more staff persons had been added to help evaluate and close the the HOME projects,however those persons had not yet been trained.

NOTE: Eason disciplined and fired the whistleblowers, who were trained.

"Unattended projects are more apt to be vandalized and cost more to complete"

RECOMMENDATION
Review each of the pre 2009 projects and report why they are still open.the amount expended on each project and provide a projected date for completion.
Post Sat Apr 14, 2018 4:04 pm 
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untanglingwebs
El Supremo

Finding 2. HUD's regulations at 24 CFR 92.2 state that a commitment of Program funds occurs when a participating jurisdiction has (1) executed a legally binding agreement with a State recipient, subrecipient, or contractor to use a specific amount of program funds to produce affordable housing or provide tenant based rental assistance.;(2) executed a written agreement reserving a specific amount of funds to an organization; or (3) met the requirements to commit Program funds to a specific local project. If the project consists of rehabilitation or new construction,a commitment occurs when the participating jurisdiction and the project owner have executed a written, legally binding agreement under which construction can reasonably be expected to start within 12 months of the agreement date....
Post Tue Apr 17, 2018 12:57 pm 
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untanglingwebs
El Supremo

Searching the OIG audit site will provide audits back to 1997 and include Flint Housing.

Flint paid back the funds for Rowe engineering that I believe were for Smith Village. There is no explanation as to why the project was not set up properly in the system. I question Atkinson's allegations of having a well trained staff after she responded to HUD they were still being trained.
Post Tue Apr 17, 2018 1:07 pm 
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untanglingwebs
El Supremo

mayor throws kate fields and advanced solutions ... - genesee flint . com
goodmorningflint.blogspot.com/2011/.../mayor-throws-kate-fields-and-advanced.htm...
Jul 26, 2011 - From the Mayors announcement to council one corruption target of the FBI is an organization called Advanced Solutions rune by Kate Fields, she also instructs at University of Michigan Flint or at least did last year. Flint Mayor Walling strongly stated to the council and community that corruption will not be .
Post Tue Apr 17, 2018 1:17 pm 
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untanglingwebs
El Supremo

GENESEE FLINT . COM
LEGAL RIGHTS BRAND IDENTITY CAMPAIGN IN FAMILY LAW ( DIVORCE, CUSTODY, SUPPORT), BANKRUPTCY, COMMUNITY RESOURCE CONSUMPTION AND RIGHTS. " SEE WHATS LEGAL"

TUESDAY, JULY 26, 2011
MAYOR THROWS KATE FIELDS AND ADVANCED SOLUTIONS UNDER THE BUS IN FEDERAL INVESTIGATION
FLINT CITY COUNCIL 7/25/11


Yesterday 07/25/11 Droid thumb live blogged the Flint City Council meeting typos and all.. There Mayor Dayne Walling announced his full cooperation with an ongoing and rare FBI Investigation of City of Flint Activities. One Mayoral Opponent Daryl Buchanan had scheduled an emergency press conference last Friday on that issue.



From the Mayors announcement to council one corruption target of the FBI is an organization called Advanced Solutions rune by Kate Fields, she also instructs at University of Michigan Flint or at least did last year.



Flint Mayor Walling strongly stated to the council and community that corruption will not be tolerated in his administration. He pledged to be transparent to the voters and regularly report on this issue. He seemed to blame the controversy on past administration but was rebuked by Flint City Council member Sheldon Neely that essentially the implementation of the federal program that the aledged miss appropriations came from was done during the Walling watch.



My corrected face book notes follow. They are numbered in the order they were posted, but here modified. in the order they were origonally presented with contemporaneous thought and commentary.



The Mayor was given special privlage to address the Flint City Council.



1.Mayor Walling talked about the FBI investigations. He is co-operationg. Some candidates [ Darryl Buchanan] are taking cheap shots. No Flint City employee is going before a grand jury on these public corruptions charges the FBI is investigation. The FBI is suboening information from before his administration. If so that would be during the Buchanan /Williamson administration. Buchanan was city administrator Daryl Buchanan was City Administration and is fully responsible for anything that ocured the Williamson Mayoral terms that he held that position.



2. The Mayor welcomes the Federal oversight. Federal Funds allocated to Flint are being frozen by the Federal government. Flint cannot spend its federal money allocated to it.



3. Mayor Walling is notifying vendors that the source of payment for there efforts has dried up and they will not be paid until and if the funds are released by the Federal Government.What hard ship is being placed on these businessmen. You wonder why any firm would risk doing business with the City of Flint.



4.The Mayor is doing an external legal review. This topic degenerated into Councilperson Neeley proclaiming the Mayor was going to hire an outside attorney to investigate him and his administration. This review effort would be hird by hime and report to him.



5. There have been $450,000 in draw down of federal money that are being investigate amid allegations of public corruptions.

6. Flint Mayor Dayne Walling announced he welcomes early review by the FBI to stop corruption.



7.Walling pledged that he will not sweep problems under the rug in Flint its a big rug. Walling said we have a responsibility to be transparent. He will take questions from the council.



8. Flint Council person Josh Freeman asked how the external review will be paid for. Walling said out of the City Attorney Cost Center.



9.David Davenport was making noise and appeared ti be trying to disrupt the meeting.



10.Councilperson Neeley to Mayor Walling. A federal review of Flint is a serious matter and nnot to be brushed over.Walling responded ,there will be a whole series of issues. The Feds are suspending the funds until an investigation is completed.



11.Neeley to Mayor. What is the scope of review that you will assign to an attorney that you hire to investigate you?



12. Neeley to Mayor. The dollars in question were spent during your administration.



13. Neeley to Mayor. Ypu said prior administration but some time you Mr. Mayor will have to step up to the plate and take responsibility.

14. Walling said he has been proactive with his co-operation.



15.Neeley chastised the Mayor for blaming the council for weakening the city of flint purchasing guidelines when appropriating the federal money in question. There appears to be some council complicity in this issue. Ms. Fields was a darling of the Flint City Council and vilified by the Buchanan/Williamson Administration.



16.The Mayor of Flint Dayne Walling was strong in his presentation. He announced that he is freezing more of the money than the feds required. One thought is that he is punishing Fields and pulling all her funding. Pay backs can be hell. Council person Freeman asked if named Flint City employees were being suspended. I think he was talking about Steve Montel and Tracy Atkins. The Mayor said no, and appeared to dream up some sort of positive spin on that.



17.Kudos to the Mayor of Flint for going into the lions den to make this announcement and take questions directly from the council. Thats the toughness I expect from my Mayor of Flint.



18. Neeley chastised Flint City Council President Jackie Poplar for her rebunking of David Davenport. I think she went a little over the top but Davenport was fully co-operationg as this drew attention to him.Neeley said her relative and city department head Donna Polar was also talking loudly. Donna Poplar was talking to Barbara Griffiths Wilson said Ms Wilson later. My tjhought was that Jerry Springer has nothing on the turmoil of a Flint City Council meeting.



19.Flint City Council President than loudly announced the rules for the public to address the Flint City Council.



20. Alex Harris stopped by my seat to tell me some tidbits. The Federal Corruption charges are all on Wallings watch [ I doubt this] .



21. The public began to address the Flint City Council. The first speaker was the mother of a murdered child, heart rendering.



22. Looking at the council agenda another Attorney Dean Yeotis sewer lawsuit notice has been given concerning events of May 19 and 25. Have we not fixed this multi million dollar deficiency in out sewer system?



23.The mother of a murdered child is criticizing the recently announced cease fire a cowardly act by the city essentialy codeling criminal. My observatoin that we have had diversion programs for first ffendersfor decades this is just another variation.



24. David Davenport began has address toi the council talking about his alledged disruption of during Mayor Wallings presentation. He said he was laughing at the lies.



25.Davenport said that Walling is trying to blame the corruption charges on past city administrator Michael Brown.



26. David Davenport called anyone who supports Mayor Walling a criminal.



27. I continued my review of the city council agenda.

Item 110988 Settlement / Speer vs City of Flint. Violation of first amendment rights amount of $30,000 to Keith Speer and his attorney Leonard Kruse. The events surrounding this cause arose during and by the Buchanan/Williamson adminstration. Possible Buchanan should pay the money back to the city.



28. Other settlements, $12,500 to Charles Young, $30,000 to Kar;l Petrich, $75,000 to Christina Conely a whistleblower issue, $30,000 to Joseph Anderson.



29. Next public speaker Chris Delmoroney talked to signs on city property between the sidewalk and the road.



30. Council person Lawler refered the sign issue to the Flint City Attorney. I have a financial interest in this issue.



31. Mayor Walling was compared to Obama by one speaker.



32. Another speaker, Barbara Griffiths Wilson talked of the investigation of Buchanan when he was ombudsman for sexual harrassment, this eventually cost him his job and destroyed the reputation of that office by the removal and the protracted litigation. This speaker also was critical of Smiths residency.





33. Neeley then chastised Poplar for letting the previous speaker talk politics at the mike.

34. Flint City Council President interjected that it was the Flint Emergency Financial Manage that gave the Flint Journal a sweet heart tax abatement. He actualy blamed the state intervention on this issue. When the council would not approve the abatement because of its conditions were not met the Flint Journal used its then great power to go to the state , destroy the mayor office, cripple the council oversight power cause the appointment of an emergency financial manager that gave them what the wants and now took. I think that is what he ment..



35.Flint City Council President Jackie Poplar then turned to Neeley in response to his criticizing her and said. Mr. Neeley when Mr. Davenport called me a whore you did not defend me . Why are you defending others now. Neeley and Davenport erupted, probably the desired result that ended with Poplar ordering the Flint police officers present to escort Davenport from the chambers which they did.He went loud.



36. At the public mike Eric Mays joined the fray. He said the Feds are coming after City Administrator Greg Eason. There will be indictments before the November election. The FBI is investigating a sitting Mayor of Flint Michigan that has never happend before.



37. Mays said that the police are investigation absentee ballot abuse. Eric is know as the king of absentee ballot campaigns. With prior allegations of abuse that resulted in changes of the state law.



38. Mays [ I assume talking about his absentee ballot advocacy] declares he will affect the rsult of the August election. He says he has done it three times before. Thanks for the heads up Eric that will justify any amount of increased scrutiny of any absentee ballot you touched or caused to be sent to a voter.



39. Alex Harris sai what the Mayor is selling is a fraud.



40 Harris said, do not fall into the shame that the feds are not looking at Walling. There was a meeting of a Federal Grand Jury on this issue July 6th. The mayor announced tonite that he is hiring an attorney to investigate him. [ Could this be an attorney to defend him?].Alex Harris said that he has documentation that mayoral appointee Tracy Atkins is double dipping like former police chief Dicks was and he was charged.



41. Alex Harris asks why his close friend and very public political ally Kate Field of Advanced Solutions is being thrown under the political bus and having these federal charges directed at her.



42. Harris pointed out Walling lost the funding for Montel and Dawn but kept them employed by paying them from other cost centers. He said the Mayor Broke the Law and not there is a full cover up in progress.



44. End- I think the Mayor did the right thing tonite and showed his integrity and strength, just what we need in a Flint Mayor.-Terry Bankert 7/26 2011 on Flint City Council meeting of 7/25/11
Post Tue Apr 17, 2018 1:20 pm 
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untanglingwebs
El Supremo

Go to the City of Flint website and then city counccil and then agendas. They have removed the council meetings (of course how better to hide stuff when they have add on resolutions).
Pull up the minutes for the July 13 and July 22, 2009 finance Committee meetings.

July 13- Page 3- resolution # 090709
A one year contract for Clean Energy Coalition (CEC) and Resource Recycling Systems (RRS) for the Dept of Energy Grant not to exceed $227,229.00 that was given through the ARRA.
Just states discussed and then indicates entire council wants both bidders including Advanced Solutions to make presentations on July 22, 2009 under a special order.
Motion made by Ananich and seconded by Gonzales. Absent were Sims and Hill.

Ananich absent on the day presentations made. Sims makes motion to postpone, seconded by Poplar.

Note: Both Sims and Poplar had made references to helping kate with federal money. Nancy Jurkiewicz and others were blown away (shades of Granholm) when Sims demanded that the DCED find money for poor kate fields. This was following a land bank meeting where Kate pled her case for leniency on her seriously delinquent land contract with the Land Bank.. I have a recording of the meeting and kate was given a revised contract. She blamed the city for not giving her any more federal money although she had ceased requesting money and had not filed her IRS 990 as required .

On August 19th the resolution for Clean Energy was dropped. Motion made by Gonzales, seconded by Loyd with Nelson and Hill absent. Walling was mayor then and both he and Eason were shown as present.


The Federal Government strives to prevent collusion, contract rigging, croneyism and other forms of contract fraud requires grant recipients to have a written procurement procedure. The initial resolution was after that process had occurred and Fields did not win the grant. When she initially applied Greg Eason' s resume was in the packet as her future CEO. Obviously he could not be after he became City Administrator.

Ananich has a long history with kate. His father, former Ombudsman Jim Ananich and now deceased, was involved with kate in a number of social concerns after Ananich mother died. Both Councilman Ananich and the woman he has referred to as his mother served lengthy terms on the GECA board. When James Campbell died jim Ananich took over as President of the Board. This was a position he held until he was elected 7th ward president, when Josh freeman took over.

During his tenure as President of GECA, Ananich signed a $100,000 loan (Register of deeds) for the former bank property on Franklin near Davison Road. He also signed the papers to geant a tax waiver on this property stating it was used for storage. GECA could not continue paying the taxes and had over $3,000 in tax arrearages.

Without the minutes of council meetings you will have a hard time following the trail. I have them and will go to my files for the dates.


Sat May 28, 2011 7:49 am
Post Tue Apr 17, 2018 1:24 pm 
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untanglingwebs
El Supremo

ConcernedCitizen
F L I N T O I D

quote:
--------------------------------------------------------------------------------
untanglingwebs schreef:
Flint Mayor Dayne Walling on Wednesday confirmed that "federal entities" were at City Hall, but declined to identify what agencies.

He said his administration is "fully cooperating with a number of ongoing federal investigations," and he is not a subject of the investigation.

"I am committed to rooting out waste and fraud in Flint," he said.
--------------------------------------------------------------------------------





Dayne,

1) If you were fully "committed to rooting out waste and fraud in Flint", then you would have fulfilled you campaign promises to interview people for positions, getting the most qualified people without "baggage and questionable pasts". Instead you appointed people from Flint with some of the most questionable ethics and "baggage".

2) You hired people that were in violation of the Flint City Charter and did not have their pay approved as required by the Charter, yet you say that you are committed to rooting out waste! Better start in your own office!

3) When Wendy Johnson was hired, I posted about her lack of accountability in the Metawananee Hills Block Club and that Keep Genesee County Beautiful would not give them any more grants because the money was not accounted for and had disappeared. Wendy even had the nerve to try and blame members who had no access to Block Club records, let alone access to any moneys the Block Club received. Now Wendy Johnson is a major subject in this investigation and you have the nerve to say that you are "committed" to "rooting" out fraud in Flint. You brought it into your own house with open arms. Hell, you invited her in and paid her on top of it.

4) If you were not part of the investigation, then why were your computers seized? Why were you and Greg Eason kept separate from each other so you could not collaborate on a story to cover up? Mr. Walling, do you think we are all so naive?

5) In your press conference, you said that this was just to go over the accounts. Sorry, but accountant come in to go over the accounts. FBI shows up when the account are questionable. This is past just going over the accounts.


Hey Dayne, how do you look in orange?

_________________
"When people fear their government, there is TYRANNY.
When the government fears the people, there is Liberty"

Thu May 26, 2011 6:10 pm
Post Tue Apr 17, 2018 1:26 pm 
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untanglingwebs
El Supremo

Nov. 14, 2011

(Flint) More departures from Flint City Hall.

The Shafran News Bureau has learned that a 3rd employee from the Department of Community and Economic Development has received a layoff notice effective the end of the day today, Monday, Nov. 14.

We have also been told the city's treasurer tendered his resignation.

Mayor Walling tells us he does not have immediate plans to fill the vacancy left by the firing, last week, of Michael Townsend, who served as the city's Finance and Budget director.

Walling says he suspects an Emergency Financial Manager would likely take over such duties in the weeks ahead.

There was much more mayor Walling said after his swearing in ceremony in city council chambers.

Below is some of the information he shared with the Shafran News Bureau:

Nov 14, 2011

(FLINT) DOE SAYS IT WILL WITHDRAW OVER A MILLION DOLLARS FROM FLINT AFTER ENERGY GRANT INVESTIGATION

The Shafran News Bureau has learned that the federal Department of Energy concluded its investigation of Flint's $1.4 million dollar energy grant the end of October - days before the election.

It is our understanding that the DOE letter sent to the mayor's office last week says the federal government plans to rescind what remains of the Energy Efficiency and Conservation Block Grant because of serious mismanagement in procurement, procedures and using unallowable costs.

Walling today told the News Bureau he'll appeal the decision. He also acknowleges the findings were turned over to the city days before the election - but they were not released publicly because the matter is being treated as a pending litigation.


Mon Nov 14, 2011 7:56 pm


The Department of Energy awarded the $1,147,900 (DOE) grant, a 3 year block grant to the City of Flint on August 10,2009 (days after Walling was elected) as part of the American Recovery and reinvestment Act of 2009 (ARRA).

On July 19,2011, the DOE sent a letter of suspension of the grant in response to allegations of serious mismanagement or misuse of the funding. The Doe conducted a 90 day review regarding concerns about the incurrence of unallowable costs, the use of imporoper procurement practices, the pursuing of activities beyond the approved scope of work, and other indicators of serious mismanagement.

Note, Webs did an indepth review of the improper procurement months ago.

Here are the DOE identified instances or areas of mismanagement or misuse of funds:

(1) Of the $327,617.71 spent to date, costs of $214,991 were questioned or unsupported in accordance with Office of Management and Budget Circular A-87 cost principles. These funds must be refunded to the Government within 30 days of the date of this letter.

Questioned costs include:
$34, 510.00 in City of Flint wages
$15,975.46 in other City of Flint costs
$ 527.48 in materials/supplies for the City of Flint

Total of $51,012,94 in Questioned City of Flint expenses.

Advanced Solutions Group Questioned costs:
$71,772.33 in wages
$ 4,272.91 in office supplies
$24,385.00 in professional services
$30,940.53 in administrative costs
$32,607.00 in profits

Of the $214, 991.25 in total questionable costs, $62,336.61 are unallowable costs. There may be some room for negotiation with the $33,371.77 in Unsupported costs and the $119,282.87 in unresolved costs.

(2) DOE has procurement standards under 10CFR600.236. These and the City of flint Procurement rules were violated:
multiple conflicts of interest
lack of justification for contractor selection when the contractor selected was not the lowest bidder
lack of required flow down to contractors of mandatory ARRA terms and conditions
Exceeding the strategy threshold amount of $250,000 defined in the grant terms and conditions
serious lack of attention to grant requirements and subcontractor management

(3) Knowingly submitted inaccurate and/or delinquent financial/performance reports, including a failure to submit the financial report and the performance report for the second quarter of both 2010 and 2011.

(4) audit reports for 2009 and 2010 noted several significant deficiencies and material weaknesses in the City of Flint's ability to manage Federal grants (note-I never saw any media reports on this nor do I remember council discussing this item)

(5) The Doe approved activities for the City of ZFlint identified in the grant over time shifted into activities which would not be approved and for which no prior approval was sought, such as the Swedish Biogas project for which the request for proposals included more recycling services than approved.

(6) The city continues to propose activities that are administrative in nature, which significantly exceed the grant's threshold of the greter than 10 percent or $75,000 administrative cost limit.

(7)To date, the City of Flint has reported neither energy savings nor physical activity to support energy efficiency in the City of Flint, nor reported the creation or retention of any meaningful numbers of jobs.


The City of Flint shall incue no new obligations and shall cancel as many outstanding obligations as possible.

The City can appeal this determination.

""Willful failure to participate with the DOE on termination of this black grant may necessitate referral of the City of Flint to the DOE debarment and suspension offical for possible exclusion from all federal transactions."
Post Wed Nov 16, 2011 9:49 am

May 25,2011 entitled City of Flint Grapevine-FBI in DCED and notes form M-live in November of 2009


Kate Fields lives with her mother (Humphey) on Maryland. She married Sprague before she went to California and obviously married Fields there. Oddly enough her URESA child support case is missing from the Genesee County Clerks office.
While the land bank evicts others for nonpayment of their land contracts, Kate and GECA got a pass at least twice. Kildee always made arrangements. She once wanted to work it off at an exorbitant amount of money doing counseling for people in danger of losing their properties.

She did not take the low bidder on her two houses on Delaware. There was to be five. MHSDA alleged Kate gave Agree construction an unfair advantage in the bid process. They relented because Arrow had a conflict of interest (Electrical Inspector Jesse Buchanan was their electrical contractor) and MAR withdrew.

[b]She added so many extras that the houses had about a 50% subsidy rate. MSHDA declined to finance any more houses and refinanced the 2 houses so Kate did not have a problem with HUD monies. There was an issue with the sale of the houses. One woman did not show her exhusband residing with her and the other owner was a GM executive retiree. Gamblin was furious (former HUD chief)because the home were intended for moderate income families. MHSDA said she overbuilt for the area. DUH!
The lawsuit referenced against GECA was the BIngo supply company attempting to get payment for about $39K in Bingo supplies given to the company. GECA 990's revealed losses from the fundraising activities. (guidestar.com) A settlement was reached but GECA quit paying so the settlement was recently thrown out.
GECA refused to work with the Land Bank and had troubles paying their taxes. Despite over $3,000 in taxes owing MHSDA gave GECA money to renovate 3 houses, 2 on Delaware and 1 on Burns. After over a year on the market, Shelter of Flint bought the houses.
Ananich signed as GECA President for a $100k loan on the bank building on Franklin across from St Vincent De Paul. It was later refinanced and was recently signed over to the lender.
GECA has not filed a 990 since their 2005, and that was over a year late. They received a fine.
GECA was sued by Flint over three properties. HUD says construction on HOME properties must be started within one year orthe grant must be amended. Kate had spent nearly all of her administrative money and had not started construction. Two of the homes on Maryland were open and vacant. GECA did not secure them and they were condemned after they were heavily vandalized.
GECA did not reveal the third house had been sold on a land contract and GECA was buying it back from the land contract purchaser. No money had been spent on the house, so the money had to be returned to the City of Flint.
Also GECA's contract had a clause requiring them to disclose any tax or other liabilities to the city. They did not and DCED did not check.
GECA had rummage sales to try to save the organization. As previously noted they are late filing this years MIchigan nonprofit report.
Kate campaigned heavily for Walling and even did a TV 17 show for his campaign.


Last edited by untanglingwebs on Tue Apr 17, 2018 1:43 pm; edited 1 time in total
Post Tue Apr 17, 2018 1:32 pm 
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untanglingwebs
El Supremo

City of Flint appealing termination of $1.1-million energy grant and demand for repayment
Print Email Kristin Longley | klongley1@mlive.com By Kristin Longley | klongley1@mlive.com

on November 14, 2011 at 7:30 PM
FLINT, Michigan The city is appealing the U.S. Department of Energys decision to terminate the citys $1.1 million energy efficiency grant after the DOE alleged serious mismanagement and misuse of the funds.

In an Oct. 27 letter from federal officials to Flint Mayor Dayne Walling, the DOE also demanded that $214,991 of the money be repaid by the end of November.

The demand follows a federal review that found the $214,991 had been used for unallowable, unsupported or unresolved costs, according to the letter.

The money was part of $327,617 in energy grant money that had been spent by the city.

The city also failed to follow procurement standards for grant work, the letter said, including multiple conflicts of interest, lack of justification for choosing a contractor that wasnt the lowest bidder and serious lack of attention to grant requirements and subcontractor management, the letter states.

The letter says the city also knowingly submitted inaccurate or delinquent reports.

Flint Mayor Dayne Walling said the letter is being treated as a legal matter and he expects the DOEs final determination to change following the citys appeal.

City Attorney Peter Bade declined to comment on the details of the letter but issued a written statement on the matter.

This is a pending legal matter that is being reviewed with the assistance of outside counsel, he said. We are and have been fully cooperating with officials from the Department of Energy in an effort to resolve this matter.

The purpose of the grant, awarded under the federal stimulus program, was to focus on projects that could create or retain jobs and to reduce energy usage and energy costs in the community.

To date, the city of Flint has reported neither energy savings nor physical activity to support energy efficiency in the city of Flint, the DOE letter states. The projects identified by the city of Flint... do not meet this criterion.

The majority of the funds questioned by the department of energy are related to Advanced Solutions Group, a third-party contractor and consulting firm run by Kate Fields, former executive director of the Greater Eastside Community Association.

Fields was paid nearly $250,000 to prepare an energy efficiency and conservation strategy, which was submitted to the Department of Energy in December 2009 and resulted in the city being awarded the balance of the $1.1 million grant in March 2010.

Nearly $164,000 of the costs by Advanced Solutions Group and about $51,000 in costs by the city of Flint were identified in the letter to be unallowable, unsupported or unresolved, according to the letter.

Fields said she was unaware of the letter before The Flint Journal brought it to her attention Monday.

After reading a copy of the letter supplied by the Journal, Fields said she believes the figures referred to in the letter were provided to the Department of Energy by the city of Flint.

I think there are several errors here (in the DOE letter), she said.

Fields said she can account for all of her costs, which fall short of the total amount cited in the letter.

She said the city has not contacted her, but she had made numerous attempts to contact city officials without success.

The city should contact me and set up a meeting where they can discuss this, she said. I know my ducks are in a row.

She also said shes concerned the city will not be able to implement the grant.

The city lost the opportunity to save millions of dollars, she said. Thats what really concerns me.
Post Tue Apr 17, 2018 1:36 pm 
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untanglingwebs
El Supremo

EM 12-461
PRESENTED: 726-12.
Resolution Authorizing Payment to the Department of Energy
to Close the Local Energy Assurant Grant
BY THE EMERGENCY MANAGER:
On March 8, 2012, The City of Flint Emergency Manager ended the citys contract with Advanced Solutions
Group and AltEnergy to develop the Local Energy Assurance Plan in Resolutions 2012EM158 and
2012EM159. The Local Energy Assurance Plan Grant was awarded by the Department of Energy and managed
by the National Energy Technology Laboratories.
The City of Flint contacted NETL to request an extension to complete the Local Energy Assurance Plan. On
March 29th, NETL requested that the city provide a corrective action plan for completing the LEAP project.
The Corrective Action Plan was submitted requesting a six month extension and a budget amendment to
contract with new consultants to complete the energy assurance plan.. NETL did not approve the extension or
budget amendment during its May 8th response but requested the city provide additional detailed
documentation. With the grant end date being June 22,2012, the City of Flint was not confident that it would
be able to properly procure and execute a contract with a consultant to complete the project with less then a
month before the end of the grant period .
IT IS RESOLVED, that the Emergency Manager on behalf of the City of Flint shall authorize appropriate City
Officials to do all things necessary to return $110,292.06 to the Department of Energy for costs associated with
implementing the Local Energy Assurance Plan from Account Number 101-690.100-964.100 and close the Local Energy Assurance Plan grant.
Post Tue Aug 07, 2012 4:05 pm


March 15, 2013 at 7:44 am

Flint repays more than $26K in federal grant money
By Associated Press





Flint Cash-strapped Flint has repaid more than $26,000 related to a federal grant that was part of U.S. Department of Energy funding.

The Flint Journal reports that the city received the $1.1 million grant in 2009, but federal auditors and the FBI raided city hall two years later after concerns over how the grant was being used. The grant was suspended and then not reinstated the next year.

The city submitted a 2011 proposal for reinstatement, but the Energy Department found the proposal wasn't acceptable. The $26,000 closes out the grant. In 2011, auditors specifically had looked at how money for the weatherization of low-income housing was being spent.

Flint currently has a state-appointed emergency financial manager.


From The Detroit News: http://www.detroitnews.com/article/20130315/METRO/303150399#ixzz2NehyLrlX


DOE Rescinds Flint, Michigan Energy Efficiency Grant

By Jeanne Roberts on November 16, 2011
.

In another episode that seems to highlight the difficulties surrounding the U.S. Department of Energys (DOEs) allocation of loan and grant programs for renewable energy and energy efficiency, the city of Flint, Michigan just had its $1.1-million efficiency grant suspended for what the DOE is calling "serious mismanagement and misuse."

That, at least, is the wording in a letter the DOE sent to current Flint Mayor Dayne Walling. Flints grant is, like Solyndras federal loan, under investigation, and its hard to know who is more culpable in these failures; the DOE for handing out money so readily it has turned renewables and efficiency into a modern-day gold rush, or the city for failing to accurately document expenditures from the grant.



Not that a gold-rush in efficiency and renewables is bad. In fact, its the only way to get to President Obamas clean energy economy and wean the nation off foreign oil. Unfortunately, failures like Solyndra and Flint set progress in achieving that future back exponentially.

In Flints case, according to the DOE, the city failed to follow grant guidelines, presumably by not selecting the lowest bid when choosing contractors, and failing to manage the work of subcontractors who performed the energy efficiency updates. No evidence of actual misappropriation has been presented.

The citys finances were already in trouble, but that didnt seem to prevent Mayor Walling getting re-elected. It did result in the state suggesting an emergency manager (as yet unnamed) a move that some see as indicative of a potential state takeover.

The city council didnt fight when a state review panel declared a financial emergency; it has said it will appeal the DOEs suspension. In the meantime, the city is looking at how to repay the $214,991 in distributions under the grant which the federal agency has called unsupported.

Flint City Attorney Peter Bade has declined comment, but did submit a letter describing the issue as, a pending legal matter under review with outside counsel.

In an April 27 meeting, the Genesee County Board reviewed a recommendation from the Genesee County Community Action Resource Department, which administers block grants, to hire eight contractors under its DOE-ARRA funding for the rest of the program year (April 2011 through March 2012; see page Cool. The city of Flint is in Genesee County.
.

Tags: USD, clean energy economy, energy efficiency grant, Flint, Genesee County Community Action Resource Department, Michigan, Solyndra, U.S. Department of Energy (DOE), Dayne Walling, energy, energy efficiency grant, Flint, Michigan, oil, Peter Bade, U.S. Department of Energy


Jeanne Roberts is a freelance writer on environment and sustainability issues. In her previous life, she worked as both a reporter and a communications specialist for a major public utility. Her most recent book, Green Your Home, approaches environmentalism from a consumers perspective.
.


Ananich's role in this debacle made me hesitate about his election to replace Gleason. He was the one who initiated the change in the vendor from a company with 17 years of experience to a company operated by Kate Fields. Ananich was a long time member of the board of directors for the Greater Eastside Community Association, in which Kate Fields was the Executive Director. Ananich served as the President of the organization until he was elected to the Flint City Council and yet he never disclosed tat relationship per HUD rules and charter requirements.

Bade refused to disclose these issues to council, citing it as a " pending legal issue." The city must have really done some finagling in order to reduce the payback so significantly.
Post Fri Mar 15, 2013 7:44 pm


https://www.cityofflint.com/wp-content/uploads/EMA1532015.pdf





EM SUBMISSION NO.: 1~Ifl11 /53.2aS
PRESENTED: 3-31-/C
ADOPTED: -
BY THE EMERGENCY MANAGER:
RESOLUTION APPROVING THE PAYMENT OF FEDDEBT CASE IDENTIFICATION
NUMBER 2015079369A REGARDING THE EXPIRATION OF ENERGY EFFICIENCY AND
CONSERVATION BLOCK GRANT WITH THE CITY OF FLINT, MICHIGAN, GRANT
NUMBER 5C0001367

The City of Flint is in receipt of correspondence from the Department of Treasury dated March17, 2015; andPursuant to an invoice from the U.S. Department of Energy dated January 9, 2015, the City failed to complete required reporting and was non-compliant with the grant terms and conditions, which requires the return of grant funds in the amount of $86,459.09; and

This debt is now considered delinquent, and payment is required as soon as practicable in the amount of $110,891.75, which includes all applicable fees, interest, and penalties as of March 17,
2015;
and

This payment shall be drawn from line item 101-690.100-964.100.
IT IS RESOLVED that the Emergency Manager hereby authorizes payment of the Fed Debt Case Identification Number 2015079369A, for the repayment of grant funds, applicable fees, interest and penalties as of March 17, 2015, relative to Block Grant Number SC0001367. Payment shall be drawn from appropriated funds in line item 101-690.100-964.100.

APPROVED AS TO FINANCE: LI / 1- A44. iSa
Dawn Steele, Deputy Finance Director

Ge&Id Ambr~e, Emergency Manager
S:\P. Bade\EM2OI 5\Resolutions\DOE Grant Fund Repayment 03.30.1 5.doc


DEPARTMENT OF THE TREASURY
BUREAU OF ThE FISCAL SERVICE
P. 0. BOX 830794
BIRMINGHAM, AL 35283-0794
March 17, 2015
City of Flint Michigan
11015 Saginaw St
Flint,MI 48502

FedDebt Case Identification: 2015079369A
Agency Debt Identification: 130496

Your unpaid delinquent debt owed to the Department of Energy, Office of Finance and Accounting Service Ctr, General Administrative, has been referred to the U.S. Department of the Treasury for collection. According to the records of the
Department of Energy, you owe $86,634.18.

Collection action will continue unless you make payment, within ten (10) days from the date of this letter, in the amount of $110,891.75, which includes all applicable fees, Interest, and penalties, as of today.
If you wish to avoid further collection action and additional charges, you must immediately pay your debt. Your check or money order should be made payable to the U.S. Treasuiy-FS. To ensure proper credit to your account, please
include the FedDebt Case Identification Number 2015079369A in the memo section of your payment Please note that we accept credit card payments via MasterCard, Visa, Discover, or American Express. Please send your payment with
the attached PAYMENT COUPON to: U.S. Department of the Treasury - FS
Debt Management Services
PostOfficeBox 979101
St. Louis, MO 63 197-9000
Post Tue Apr 17, 2018 1:41 pm 
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untanglingwebs
El Supremo

Flint City Council adjourns investigative hearing on grant spending; Process to continue next week
Print Email Kristin Longley | klongley1@mlive.com By Kristin Longley |
on November 22, 2011 at 11:36 PM, updated November 23, 2011 at 11:54 AM

Flint Mayor Dayne Walling (far left) looks on as (seated at the table from left to right) the city of Flint's Green Coordinator Steve Montle, Chief City Attorney Peter Bade and Assistant City Attorneys Thomas Kent and John Postulka listen to questions from Flint City Council members at an investigative hearing Tuesday in the council's chambers at Flint City Hall.
FLINT, Michigan -- On orders from a judge, the Flint City Council adjourned its investigative hearing at 10:30 this evening after questioning five witnesses about the city's energy grant spending.

Genesee County Circuit Court Judge Judith Fullerton earlier today put a four-hour time limit on the hearing after Mayor Dayne Walling's administration filed a lawsuit seeking to postpone the hearing because of the volume and scope of the information council was requesting.

Council members were also allowed to question up to eight witnesses, but only had time for five. Two were dismissed early and time ran out before council members were able to question Walling.

Council President Scott Kincaid said the city would reconvene the hearing at a later date, after the council receives the information it has requested by the court-ordered deadline of Nov. 30.

Councilman Dale Weighill urged the council to move forward quickly, as an emergency manager is likely to be appointed to take over the city in the next week or two.

"We won't have any authority," Weighill said, referring to state law that says local elected officials are removed of their powers once an emergency manager is appointed.

Kincaid said tonight's hearing, though at times combative between council members and members of the mayor's administration, was "normal" and typical of what goes on at such hearings.

"I think we were able to accomplish some of the stuff we're looking for," he said. "What's important is that we bring to light some of the issues that don't get talked about."

Council members took testimony from five people about their roles regarding the city's energy grant, which was terminated for "mismanagement" according to an Oct. 27 letter to the city from the U.S. Department of Energy.

Kincaid said the most informative portions of the hearing were regarding complaints made about the city's implementation of the grant.

"There was recognition early on that the grant wasn't being complied with," he said, adding that at least three of the witnesses talked about irregularities. "All of them identified issues with the Department of Energy grant that weren't being complied with."

The city received the grant in March 2010, but none of the projects had been completed by the time the grant was suspended in July 2011 pending a federal investigation that later led to the grant's termination, according to testimony.

Kincaid said city officials should have been more aggressive in pursuing grant activities.

"The bigger issue for me is we've potentially lost the grant," he said, adding that the money was to be used to make the city more energy efficient. "That could have saved us money in the long run."
Post Tue Apr 17, 2018 1:52 pm 
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