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Topic: May 5, 2010 follow up misconduct complaint on Eason

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untanglingwebs
El Supremo

This letter to Peter Bade is dated May 5, 2010 and received by the City Attorney's office on May 12, 2010.

This letter is a follow-up from our interview with you and Angela Watkins and is our formal complaint regarding misconduct of Gregory A. eason, the City Administartor and de facto Director of Community and Economic Development.

We believe that Mr. Eason has violated the Flint City Charter, Federal Conflict of Interest regulations, City Purchasing Ordinance 18-21.5(e)(2), and Federal Procurement rules set forth at 24 Code of Federal Regulations Part 85, US Office of management and Budget (OMB) Circular A-187 Cost Principles for State, Local and Indian Tribal Governments, and OMB Circular A-102 Grants and Cooperative Agreements with State and Local Governments. We further believe Mr. Eason abused his position of authority as City Administrator and de facto Director of Department of Community and Economic Development (DCED), to influence and steer contracts and jobs to vendors and individuals.

It should be noted that Michael Brown was City Administrator under Mayor Donald Williamson's administration and became Acting mayor of the City of Flint on or about February 10, 2009 and served until August 4, 2009. Dayne walling was elected Mayor on August 4, 2009 and is the current Mayor.

Gregory A. Eason was a candidate for Mayor during the primary phase of the 2009 mayoral election. After he lost his mayoral bid, Mr. Eason publicly endorsed Dayne Walling for mayor. Mayor Walling hired Mr. Eason as City Administrator on or about August 14, 2009. Mr. Eason became the de facto Director of Community and Economic Development at the same time and continues in this position today, even though Wendy Johnson was appointed by City Council as Director of the Department on or about February 22, 2010. Mr. Eason controls all activities and directs the hiring of the personnel for DCED.

The Misconduct complaints of Gregory A. Eason are listed in this letter:

A) Contracts to Advanced Solutions Group, LLC (kate Fields is owner)

#1) Mr. Eason has a conflict of interest with regard to his business relationship with Advanced Solutions Group, LLC, an organization with which the City entered into a contract. The city solicited proposals from energy firms to prepare an energy strategy using funds from the Department of Energy and its Energy Efficiency Conservation Block Grant Program (EECBG). Four proposals were received. The City established an internal and external review process. Both committees final recommendation was to enter into a contract with Clean Energy Coalition (CEC) and Resource Recycling Systems (RRS). CEC/RRS was recognized as significantly more qualified and its bid price was significantly lower. Advanced Solutions bid price for Phase 1 work was $249,987, which Clean Energy Coalition (CEC) and Resource Recycling Systems (RRS) bid was $56,290 for Phase 1 work. A resolution to enter into a contract with Clean Energy Coalition (CEC) and Resource Recycling Systems (RRS) in the amount of $227,229 to perform all phases of the work was submitted for City Council action on or about June 17, 2009 (resolution #090709), under Mayor Michael Brown's administration.

City Council postponed approval and delayed action on this resolution for several meetings. During this time frame, Mr. Gregory Eason became the City Administrator. At the August 19, 2009 Finance Committee meeting, City Council dropped Resolution #090709 to award the contract to Clean Energy Coalition (CEC) and Resource recycling (RRS).

Mr. Eason had a business relationship with Ms. Fields, which is substantiated in her firms EECBG proposal that was submitted to DCED on may 18, 2010 pursuant to the RFP bid process. Mr. Eason was listed in her proposal as a subcontractor, and payment was proposed to Mr. Eason's firm, Visions Unlimited Consulting, in the amount of $7,725.

At the August 24, 2010 City Council meeting, Mr. Eason presented Resolution #090962 to replace Resolution #090709. Resolution #090962 requested authorization to award a contract to Advanced Solutions Group, LLC, The resolution was approved to develop the strategic plan and implementation of the plan at a price of $249,987. However, the Advanced Solutions contract executed on September 16,2009 in the same amount provided for strategic plan development only. The scope of the work in the Advanced Solutions contract did not include implementation of the EECBG plan. This replacement resolution resulted in a contract award to Advanced Solutions more than four times the amount of the community-recommended firm, Clean Energy Coalition (CEC) and Resource Recycling Sytems (RRS). We believe this action violates the City Charter and federal conflict of interest provisions as well as federal procurement regulations and OMB Circulars governing federal funds.

NOTE; Ms. Fields has subsequently billed the City for the full amount of her contract for development of the strategy only. No Phase Two work was completed under this contract.

#2) Mr. Eason tried to steer more funds to Advanced Solutions (Kate Fields is owner) by providing an additional $26,750 for the EECBG implementation component. In January 2010 Mr. Eason directed staff to prepare a resolution to award a contract for this work to Advanced Solutions. This resolution was presented to the Chief legal Officer and Finance Director for signatures and was approved and forwarded for Council action. we believe this action violates the City Charter and fedral conflict of interest provisions as well as federal procurement regulations ans OMB Circulars governing federal funds.

#3) Mr. Eason directed staff to give more federal funds to Advanced Solutions under the Neighborhood Stabilization Program (NSP). The City requested proposals for an energy audit firm for its Neighborhood Stabilization Program (NSP) of which Advanced Soltions was one of the bidders. The review committee recommended funding of two of the five bidders for $15,000 each. Mr. Eason directed that the entire $30,000 be awarded to Advanced Solutions. Resolution #091247 was approved by the City Council on December 21, 2009 in the amount of $30,000 for this contract. We believe this action violates the City Charter and federal conflict of interest provisions as well as federal procurement regulations and OMB Circulars governing federal funds.

In addition to the violations of federal and local law, we believe the actions above represent an abuse of Mr. Eason's position of authority, and gross waste of ARRA funds.

B) Mr Eason steered contractsand employment awards to Jacqueline Foster. Mr. Eason and Ms. Foster had a professional relationship prior to her receiving an emergency purchase contract, and subsequently becoming a temporary employee of the City of Flint. Ms. Foster was an employee of Jobs Central (now career Alliance) and worked for Mr. Eason when he was Executive Director of Jobs Central. She was a co-defendant on a sex discrimination case filed by a former employee, Sandra R. jackson, in Genesee County Circuit Court.

#1) Ms Foster is a consultant and owner of Proposals Plus. Mr. Eason steered a contract to her by retaining her company to perform relocation services for Greenview Manor tenants. This contract was authorized on or about december 17,2009, as a noncompetative comtract undr the City's emergency purchase provisions. The contract was awarded to Proposals Plus in the amount of $10,000 and was paid for by federal grant funds. Ms. Foster did not have any federal relocation experience and was actually paid for work not included in the scope of services, per directive from Mr. Eason. We believe this action violated the City Charter and federal conflict of interest provisions as well as federal procurement regulations and OMB Circulars governing federal funds.

#2) Mr. Eason created the position of Community development Administrator in DCED. This position is listed in the proposed City Budget issued on April 5, 2010 by Mayor Walling and Gregory Eason for the fiscal
year beginning July 1, 2010. Prior to the adoptin of this budget, on April 14, 2010, Mr. Eason hired Ms. Foster as a temporary employee in the position of Community Development Administrator in DCED. Hiring also occured prior to the completion of her consultant contract. We believe this action violates the City Charter and federal conflict of interest provisions as well as federal procurement regulations and OMB Circulars governing federal funds.

C) Mr Eason created this new position of Business Development manager in DCED. This position is listed in the proposed city budget issued on April 5, 2010 by Mayor Walling and Gregory Eason for the fiscal year beginning July 1, 2010. Priot to the adoption of this budget, on or about April 14, 2010, Mr. Eason hired his friend, Ricky Jordan, as a temporary employee in the position of Business manager. Their relationship stems from the 1980's when Mr. Eason was manager of the Oak Business Center and Mr. Jordan was a business tenant in the facility. We believe this action violates the City Charter and federal conflict of interest provisions as well as federal procurement and OMB Circulars governing federal funds.

D) Mr. Eason created the new Housing Development Administrator position in DCED. He tried to fill this job through a Request For Proposal (RFP) process and attempted to steer the contract to his friend Gregory A. Averyhardt. Mr. eason aborted this contract when this information became public and City Council questioned him about hiring mr. Averyhardt. We believe this action is indicative of Mr. Eason's ongoing behavior of abusing his position of authority to influence awards and steer contracts to his business and personal friends. We believe these actions violate the City Charter and federal conflict of interest provisions as well as federal procurement regulations and OMB Circulars governing federal funds.

Please investigate these matters.

Karen A. Morris
Carol freeman
Glenda Dunlap
suzanne Wilcox
Post Mon Dec 12, 2011 4:17 pm 
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untanglingwebs
El Supremo

Cathy Shafran developed a timeline and used it on her video for Shafran News Bureau.

August 2009 kate Fields gets the grant

December 2009- Morris starts complaints about irregularities in the admnistration of federal grants programs

April 1, 2010- all four females file complaints with the Civil Service Commission re: retaliation

April 14, 2010- threats made public at a departmental staff meeting

April 20,2010 - all 4 file a "violence in the workplace " charge against Eason

May 5, 2010-letter sent to Bade about concerns

May 26, 2010- letter sent to Department of Energy about energy grant concerns

June 1, 2010- Bade responds to DCED employees saying he received their May 5th letter re the DOE concerns and says the investigation could take weeks

June 2010- DOE audits energy grant

September 2, 2010-Morris suspended from her job without pay for 28 days

December 1, 2010- Morris files a violation of whistleblower protection act complaint

May 26, 2011 The investigative arm of the Department of Energy starts auditing the grant

july 19, 2011 - DOE sends letter suspending grant for 90 days pending review

October 27, 2011 DOE terminates grant

Cathy Shafran interviewed Bade in October of 2011 and he told her he knew nothing about the complaints until the feds moved in during the summer. This letter indicates he knew at least one year earlier.


This is the same scenario that played out in the investigative hearings. You could see a deflated Peter Bade when Neeley confronted him with the May 5th letter.

THE QUESTION IS DID BADE DELIBERATELY HIDE THE ISSUES RELATED TO THE ENERGY GRANT FOR NEARLY 18 MONTHS. IF SO, WHY IS HE STILL HERE? AND WHAT ROLE DID THE MAYOR PLAY IN THIS COVER-UP?


Last edited by untanglingwebs on Mon Dec 12, 2011 8:32 pm; edited 1 time in total
Post Mon Dec 12, 2011 4:43 pm 
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untanglingwebs
El Supremo

From the May 5, 2010 letter to Bade:

D) Mr. Eason created the new Housing Development Administrator position in DCED. He tried to fill this job through a Request For Proposal (RFP) process and attempted to steer the contract to his friend Gregory A. Averyhardt. Mr. Eason aborted this contract when this information became public and City Council questioned him about hiring Mr. Averyhardt. We believe this action is indicative of Mr. Eason's ongoing behavior of abusing his position of authority to influence awards and steer contracts to his business and personal friends. We believe these actions violate the City Charter and federal conflict of interest provisions as well as federal procurement regulations and OMB Circulars governing federal funds.

______________________________________________________________

This is the issue John Carpenter went to Council about as he was the lowest responsive bidder to the RFP.

Eason abandoned the RFP when he could not legitimately give the contract to Averyhardt and he would not give it to Carpenter. His excuse for not awarding the contract was that he had not budgeted enough money to meet Carpenter's bid.
Post Mon Dec 12, 2011 4:58 pm 
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