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Topic: Did Puckett's mismangement lead to Stanley's recall?

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untanglingwebs
El Supremo

Canada Free Press
Because without America, there is no free world.

No voter approval for debt which taxpayers are on the hook for means no accountability for elected politicians
Will California Town become Another Flint, MI?
Katy Grimes image

By Katy Grimes —— Bio and Archives October 19, 2016



The town of Apple Valley, California, deep in the heart of the Victor Valley of San Bernardino County, has a ballot initiative battle grappling with accountability for bond debt. But it’s gotten political with citizens claiming elected members of the Apple Valley Town Council have ceased making decisions in the best interests of their community.

Nearly 4,000 Apple Valley residents signed petitions to bring Measure V to the Nov. 8 ballot to require voter approval of any Town project of $10 million or more, including the Town Council’s attempt to take over the existing Liberty Utilities’ water system.

The citizen-initiated Measure V, called the “Right to Vote on Debt Act,” was also unanimously approved by the Town Council to be on the Nov. ballot. But then the so-called Republican Apple Valley Town Council pulled a fast one and initiated and passed its own ballot Measure W, to compete with Measure V. San Francisco law firm Remcho, Johansen & Purcell was hired by the Apple Valley Town Council to write the alternative measure. This law firm represents the California Democratic Party, and wrote Gavin Newsom’s anti-gun measure Proposition 63.

If passed, Measure W would allow the town to continue its water system eminent domain acquisition efforts unencumbered by another election.

The town council’s Measure W would allow for some oversight, but specifically with acquisition of the water system excluded from voter approval.

The small print of the town council’s measure also finds that voter approval would in fact not apply if the Town Council

conducts a public hearing prior to issuing public debt;

certifies that projected revenues from the enterprise exceed the debt payments proposed;

certifies that debt will not be paid by the taxing power of the town; and

requires an annual independent audit to ensure that the proceeds of the debt are utilized in connection with the enterprise only.

Town Council Uses Taxpayer Funds for Campaign

Town Council-initiated Measure W proponents say the citizens’ Measure V “would slow the political process by requiring voter approval for other projects.”

However, the Apple Valley Town Council has taken it one step further and used public taxpayer dollars to fund their campaign for Measure W.

The town has also paid more than $50,000 to a Sacramento-based law firm for advice services related to Measure W.

Apple Valley recently issued its October-December “Our Town” newsletter, which is taxpayer-funded, to undermine the citizen-qualified initiative Measure V. This newsletter misrepresents and provides the voters of Apple Valley with a false comparison of the Town Council’s Measure W, and the People’s Voter-Approval Measure V.



It is illegal for the Town Council to expend any of its taxpayer resources to advocate for Measure W’s passage or against Measure V’s passage.

While the Newsletter lists a number of alleged “public concerns” regarding the provision of water services to the citizens of Apple Valley, the striking difference between Measures V and W is that the Apple Valley Town Council measure is nothing more than an attempt to undermine the initiative qualified by the 4,000 Apple Valley residents. The newsletter is neither impartial nor merely informational as the law demands.

When shenanigans like this take place, public trust in elected officials wanes.
Flint, Michigan and Apple Valley, California

Adding to the issues surrounding the dubious Measure W, The Apple Valley Citizens for Government Accountability has released a report exposing recently uncovered Flint Journal articles which show Apple Valley Assistant Town Manager for Finance, Marc Puckett, resigned from his position as Director of Finance for the City of Flint, MI, after it was shown that he had failed to transfer money to the city’s pension fund for two years, costing Flint taxpayers $1.1 million dollars. A subsequent independent audit of Puckett’s Finance Department showed widespread mismanagement and a lack of transparency which ultimately cost taxpayers, according to the Apple Valley Citizens for Government Accountability, a citizen’s watchdog group.

Puckett’s actions contributed to financial disaster and the ultimately poisoned water in Flint, says the Apple Valley Citizens for Government Accountability.

The Apple Valley Citizens for Government Accountability, released the report in September detailing alarming information about Marc Puckett, that raises questions of credibility for the Town government, and the Council’s push for the eminent domain acquisition of Liberty Utilities.

Flint Journal articles published between 1999 and 2000 showed that Puckett’s behavior in Flint shows a frightening pattern that is evident today in how he handles Apple Valley residents’ tax dollars. He demonstrates an utter lack of transparency, and crafts budgets that we have routinely called a ≈íshell game for the way they obscure spending, said Diana J. Carloni, an Apple Valley resident and local attorney.

Flint Mayor Woodrow Stanley, was recalled two years after Puckett’s resignation, largely because of the financial mess in which his administration had left the City.

It was actually under Puckett’s tenure as Finance Director that Flint water bills from its city-owned water utility soared, with some residents experiencing a ten-fold increase, the report found.

Puckett went on to serve as Finance Director of the City of Costa Mesa for ten years, before being put on leave, and mysteriously resigning soon after, according to the Apple Valley Citizens for Government Accountability report.

“Did the Town Council know of his history, and how can we trust what Puckett is putting out there if he has been so elusive about his past history?” asked Katie Manning, a member of the watchdog group’s leadership committee.

“This news should certainly put a damper on the Town of Apple Valley’s assurances that they can handle taking over the privately owned water company, and their newly announced plans to become the Town¬πs electrical provider.”

In September, Puckett presented the third in a series of transparency reports detailing the cost of the town’s acquisition efforts of Liberty Utilities, Apple Valley’s water system, the vvdailypress reported:

“The 10-page report—first compiled more than a year ago by staff at the Council’s request—illustrates several financial numbers from Jan. 1, 2011, through the end of Aug. 2016, with $974,205 spent on attorney costs and a possible future expenditure estimate of $3.5 million.”

“The rates in Apple Valley are more than twice of what they are in Hesperia and the surrounding communities of Victorville, Adelanto and Barstow,” Puckett said. “Our water rates are excessively high. That is a complaint that we have continuously fielded from our residents.”

The transparency report revealed the town paid more than $47,000 for the advice services of Remcho, Johansen & Purcell LLC. The Daily Press previously reported that the services were related to Measure W, the town’s alternative to Measure V, the Liberty Utilities-backed “Right to Vote on Debt Act.”


In 2008, the Apple Valley Town Council selected John E. Brown, a partner in the law firm of Best Best & Krieger, to serve as town attorney. Best Best & Krieger is the same law firm which represented the city of Bell and were sued twice for failing to properly advise Bell on a $35-million bond offering in 2007. Bell’s top city officials including the mayor, four city council members, and the former city administrator were convicted on graft and corruption charges and sentenced to prison.

BB&K Attorney Brown has been overseeing the eminent domain acquisition of Liberty Utilities.

Interestingly, Mr. Brown is not alone. City of Claremont Attorney Sonia Carvahlo is also a partner of Best, Best & Krieger, the same law firm promoting an eminent domain takeover for the City of Claremont’s water system enterprise.

What could the motive be? Best, Best & Krieger partners have a financial interest and have and stand to generate substantial billings if the eminent domain takeover moves forward.

John Brown is also the City Attorney for other cities. From his bio:

He is the city attorney of Ontario, California, the town attorney of the Town of Apple Valley, California and Interim City Attorney of the City of La Habra Heights, California. He has served as the city attorney for cities throughout California since 1976.

Mr. Brown also acts as general counsel for a variety of other public agencies. He has served as general counsel to the Elsinore Valley Municipal Water District for more than 30 years and also acts as general counsel to the Hi-Desert Water District.

Citizens for Government Accountability member Greg Raven characterized the town’s efforts as an “insane jihad” against Liberty, who financially backed Measure V and the signature-gathering process, the Victorville Daily Press reported.

Measure W is nothing more than restatement of current law.

Measure V is simple—it’s about the right to vote on long-term debt, and does not prevent capital improvement projects for Apple Valley’s infrastructure. It was specifically written to exempt improvements to parks, streets, bridges and other community needs. It only applies to bonds for revenue generating enterprises like water or sewer services.

Behaving more like left-wing, big government politicians, the Apple Valley Town Council maintains opposition to Measure V because it goes beyond the town councils’ plans to acquire the Apple Valley water system, and would cover other projects the town may want in the future. And they don’t want voter approval for acquisition of any enterprise that incurs public debt over $10 million.

No voter approval for debt which taxpayers are on the hook for means no accountability for elected politicians.
Katy Grimes -- Bio and Archives | Click to view 2 Comments

Articles with Megan Barth


Katy Grimes is an investigative journalist, Senior Correspondent with the Flash Report, ReaganBaby, and Senior Media Fellow with Energy and Environmental Institute. A longtime political analyst, she has written for The Sacramento Union, The Washington Examiner, Watchdog.org, The Pacific Research Institute’s CalWatchdog, The San Francisco Examiner, The Business Journal, E&E Legal, The Sacramento Bee, Legal Insurrection, Canada Free Press, and Laura Ingraham’s LifeZette, and can be heard regularly on many talk radio shows each week.
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untanglingwebs
El Supremo

Apple Valley Haunted By Squandering Of H2O System Purchase ...
sbcsentinel.com/2016/09/apple-valley-haunted-by-squandering-...

Sep 18, 2016 ... Assistant town manager Marc Puckett, who oversees Apple Valley's ... by means of a complaint to the California Public Utilities Commission,
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untanglingwebs
El Supremo

Apple Valley’s head of finance comes under fire
Wednesday
Posted Sep 14, 2016 at 1:26 PM Updated Sep 14, 2016 at 3:51 PM

By Matthew Cabe
Staff Writer

APPLE VALLEY — A report released Tuesday by a group aligned with Liberty Utilities alleges that a key town official's "failed tenure" as Flint, Michigan's director of finance "contributed to financial disaster and ultimately poisoned water" in that city.

The six-page report — released by the Apple Valley Citizens for Government Accountability — also contends a financial practice instituted by Marc Puckett during his tenure in Flint, which involved charging various accounts for things the general fund had paid for previously, is the same that "has been heavily criticized in the Town of Apple Valley" while Puckett has served as Assistant Town Manager in charge of finance.

CGA is outspoken against the town's eminent domain acquisition attempt of the water system owned by Liberty Utilities, Apple Valley, and CGA leadership said the report "should certainly put a damper on the Town of Apple Valley's assurances that they can handle taking over the water system."

Town Manager Frank Robinson characterized the report as a personal and mean-spirited attack made by "those on the losing side of a critical public policy issue."

"These character attacks have no bearing whatsoever on the exhaustive and transparent studies, legal briefs, appraisals and other reports that have presented to the public and the Town Council regarding acquisition of the water system," Robinson said via email. "We stand behind the integrity and competency of Mr. Puckett."

From 1992 to 1999, Puckett oversaw Flint's Finance Department. He was at the helm in January of '99 when that city forwarded $9 million to its pension system after failing to make transfers for about six months, according to the report that cites numerous articles published in the Flint Journal between 1999 and 2000.

Puckett abruptly resigned days after news of the transfer broke, and he revealed in a letter to then 6th Ward City Councilman Mark Horrigan that "deposits — made up of employer and employee contributions — have not been transferred as they should have been for more than two years," one Flint Journal article noted.

Not long after, former Flint Treasurer Jim Goodwin told the Flint Journal the untransferred amount "was up to $21 million at one point." At the time of his resignation, Puckett said he was considering a job offer received in December 1998.

The CGA report claims that the failed transfers, which were supposed to have been moved every two weeks from a cash account to a money market retirement system account, cost Flint $1.1 million due to lost interest that the fund would have made.

Puckett declined to comment on his time in Flint when the Daily Press contacted him in February; however, in the letter to Horrigan he stressed that "all monies in question ... have always been on deposit in the retirement fund," the Flint Journal reported.

He also said that "the money had simply not been transferred from one retirement fund to another." Puckett blamed the failed transfers on an internal auditor in his department, but the Journal reported that a grievance chairman with the American Federation of State, County and Municipal Employees described that blame as "appalling" in a letter to then City Administrator David Ready.

The letter said the employee blamed for failing to make the transfer "was never trained in this area because they are not authorized to do transfers to the pension fund," according to the Flint Journal. Prior to his resignation, Puckett did acknowledge he was to blame for failing to catch the employee's error.
More Video: Florence Page celebrates her 105th birthday Tuesday afternoon.

In the weeks after Puckett's resignation, the Flint Journal also reported on $6 million in misdirected property tax payments, as well as "millions of dollars in industrial facility taxes" that hadn't been paid to the state of Michigan since 1996.

Seven months after Puckett resigned, an audit "found significant deficiencies in the city's internal controls over financial reporting," the Flint Journal reported.

Meanwhile, some 17 years on, Citizens for Government Accountability leadership believes Puckett's actions can be linked to the water crisis in Flint that began in 2014 after that city changed its primary water source to the Flint River, a move that resulted in lead contamination and thrust the public health danger there into the national spotlight.

"Puckett's previous employer, Flint Mayor Woodrow Stanley, was recalled two years after Puckett's resignation, largely because of the financial mess his administration had left the City in," CGA leadership said in a statement. "The same year as Stanley's recall, the Michigan State Government appointed an Emergency Manager for Flint, which ultimately led to a switch to the Flint River as a water source, lead-filled pipes, and ultimately the #FlintWaterCrisis."

The statement added, "It was actually under Puckett's tenure as Finance Director that Flint water bills from its city-owned water utility soared, with some residents experiencing a ten-fold increase."

Robinson, however, praised Puckett's work, which includes helping to continue the town's 13-year streak of receiving the Distinguished Budget Presentation Award from the Government Finance Officers Association.

"Under Mr. Puckett's leadership, our financial stewardship has earned us accolades from national and international government accounting firms," Robinson said. "... We have exceeded the standards set by the California Society of Municipal Finance Officers, earning the Operating Budget Excellence Award for the first time in 2015, and again this year."

CGA demanded answers in light of the report on Puckett, who has been in charge of Apple Valley's finances since 2010. Diana Carloni, a former Hesperia mayor and member of CGA's leadership committee, said Puckett's "behavior in Flint shows a frightening pattern that is evident today in how he handles Apple Valley residents' tax dollars."

"He demonstrates an utter lack of transparency," Carloni said, "and crafts budgets that we have routinely called a 'shell game' for the way they obscure spending."

Matthew Cabe can be reached at MCabe@VVDailyPress.com or at 760-951-6254. Follow him on Twitter @DP_MatthewCabe.
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untanglingwebs
El Supremo

20160913 Investigation: Flint / Apple Valley Connection
waterwedoing.website/docs/2016/09/20160913-marc-puckett/repo...

Sep 13, 2016 ... Marc Puckett is currently the Town of Apple Valley Assistant Town ... That position was as Director of Finance for the City of Costa Mesa, CA, ...
Post Wed Mar 15, 2017 2:44 pm 
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untanglingwebs
El Supremo

CFGA - Apple Valley Citizens for Government Accountability
Investigation: Flint / Apple Valley Connection (September 13, 2016)

Apple Valley Citizens for Government Accountability was founded in 2015 over concerns of out-of-control spending and a lack of transparency by the Town of Apple Valley.

Specifically, there was a lack of scrutiny of unelected Town staff who were pursuing multiple eminent domain actions, embarking upon major debt spending projects, and neglecting investment in legitimate Town functions such as infrastructure and public safety in the Town’s budget.

Recently, in the shadow of the #FlintWaterCrisis, we discovered a connection and a pattern of mismanagement that connected Apple Valley with Flint, Michigan.
Marc Puckett — Current Apple Valley Assistant Town Manager/Former Flint, MI, Finance Director

Marc Puckett is currently the Town of Apple Valley Assistant Town Manager in charge of the Town’s finances. He is responsible for drafting the Town’s budget, for responsibly allocating taxpayer funds, and for investing taxpayer dollars, among other things.

Puckett was also the Director of Finance for the City of Flint, MI, from 1992 to 1999.

The Apple Valley Citizens for Government Accountability group has uncovered a pattern of mismanagement by Puckett during his time in Flint, MI, with direct repercussions for the taxpayers of Apple Valley.

The Flint Journal stated that Puckett had been "credited with helping to make up a multi-million dollar deficit by charging various accounts for things the general fund had paid for previously."¹ This same practice has been heavily criticized in the Town of Apple Valley, and the Town is currently being sued for Proposition 218 violations related to its recent sewer rate increases.
Marc Puckett resigns from Flint, MI, under cloud

Marc Puckett resigned from his position as Director of Finance for the City of Flint, MI, just days after an unusual $9 million transfer was made to the City’s pension system. According to Flint Journal articles published between January 1999 and September 2000, Flint city of cials discovered that the Finance Department under Puckett had failed to transfer money to the Pension Fund for two years, which ended up costing the City $1.1 million dollars due to lost interest that the fund would have been making.²

In an article published February 2, 2009, Puckett claimed that "These funds have always been in the retirement (system)."³ In another article, Puckett called the pension controversy "contrived because someone is running for mayor."4

After his resignation from the City of Flint, the amount that had not been transferred to the pension kept increasing, from $9 million at the time of the report,5 to $17 million a week later.6 When the final late transfer was finally made, the total would be up to $21 million.7

Even at the time of his resignation, Puckett claimed that "all monies in question … have always been on deposit in the retirement fund."8 Then after claiming "full responsibility" for non-transferred pension funds, he continued to blame employees underneath him, stating that he "failed to follow up to ensure that these work assignments were complete,"9 and blaming an internal auditor in his department.10

A Flint Journal article from February 24th states that the "city (of Flint) will deposit an additional $1.1 million into its retirement system…the minimum amount of interest officials say is owed to the fund because of past failures to transfer money to the proper pension accounts."11

This $1.1 million were funds that came directly out of taxpayers’ pockets, which would not have been necessary but for the shell game played by Marc Puckett.
Independent audit reveals true failings of Puckett’s tenure

Upon Puckett’s exit, the Flint City Council immediately called for an independent audit, and in addition to non-transferred pension funds, discovered the following:

Under Marc Puckett as retirement board secretary, the retirement system accounts had not been subject to a stand-alone audit.12
From 1996 to Puckett’s exit, the City incorrectly misdirected some $6 million in property tax payments.13
From 1996, to Puckett’s exit, Puckett as Finance Director failed to pay millions in industry facility and commercial facility taxes to the State Government. A previous audit done in 1996 determined that the city had not paid $12 million in taxes for the four previous years, and the payment was later made.14
The city violated state law by spending beyond the budget adopted by the City Council in certain areas.15
A lack of employees in the City Finance and Budget department resulted in transactions not being recorded on the city’s general ledger in a timely way, making it impossible to compare the city budget to its actual spending on a monthly or quarterly basis.16

Following his resignation and the fallout, multiple City Council members and city leaders criticized Puckett for the damage done to Flint — especially after Puckett cashed in on $6,000 of unused vacation time.17

"(Puckett) should have been terminated, not rewarded."
Former Flint City Council President Scott Kincaid18

"In previous years … Puckett often didn’t share information freely."
Former Flint Finance Director Matthew Grady (Puckett’s Successor)19

"Who could forget Marc Puckett, the former finance director who resigned after costing the city a million dollars for screwing up the pension funds?"
Andrew Heller, Flint Journal columnist20

"… the problem is they can’t get the figures (from Puckett’s department)."
Donald Phillips, Former Flint City Retirement Board Member on auditors’ requests21

"The person (Puckett) wasn’t telling us the truth."
Barry Williams, Former Flint City Councilman22

Puckett’s impact elsewhere

According to the Flint Journal, prior to his tenure in Flint, Puckett was red from his position as Director of Finance for the nearby City of Eastpointe, MI, for undisclosed reasons.23

At the time of his resignation from Flint, Puckett claimed that his resignation was not related to the pension flap, but instead due to the fact that he had accepted a governmental position elsewhere.24

That position was as Director of Finance for the City of Costa Mesa, CA, where he served in this position from 1999 to 2009.

Puckett was placed on leave from his position in September of 2009, at which point he abruptly resigned. The city manager at the time stated that it was not for "financial malfeasance," but could not say "whether a criminal investigation was pending."25

Puckett later became head of the Town of Apple Valley’s Finance Department in 2010.
Puckett, Apple Valley, and the #FlintWaterCrisis

The Town of Apple Valley, under Marc Puckett’s leadership as head of the Finance Department, is seeking to take over a multi-million-dollar water company via eminent domain, and take on over $100 million in revenue bond debt to accomplish this. Also, with the departure of former Assistant Town Manager Dennis Cron,26 there would seem to be no remaining Town staff with water experience.

However, Marc Puckett has experience with the City of Flint’s Water Department.

In a Flint Journal article on April 3, 1996, entitled "Folks Soaked by Water Bills May Get Relief," customers were complaining about the outrageous increases in water bills by the City. Flint resident Colette Timlick, whose bill went from $70 to $700, said "The city has a monopoly. You can’t go anywhere else. You’re stuck, and that’s what angers people."27

In the article, Marc Puckett defended the water meter reads and stated there was a misconception about water meter malfunctions, stating it was "impossible for the meter to advance at a rate of speed faster than the water flow through it," and that it was "resident’s responsibility to check" remote readings.28

When the Flint Water Crisis hit, the fault laid not only on a switch to water supplied by the Flint River, but in the lead contaminated pipes that were the result of decades of non-investment in their water system.29 The switch to the Flint River water supply was the direct result of residents and politicians who thought their water bills were too high.

Many point to the start of problems with water bills and water quality to previous Mayor Woodrow Stanley, who was recalled in 2002 due to the financial state in which he left the city.30 The appointment of Flint’s Emergency Manager in 2002 (which led to the #FlintWaterCrisis) was a direct result of the financial wasteland left by the Stanley administration.

Who was in charge of finances during most of Stanley’s term as Mayor? Marc Puckett.

Questions that need to be answered.

This investigation by the Apple Valley Citizens for Government Accountability has led to some serious questions involving the financial health of the Town of Apple Valley, including:

Did the Town Council know about Puckett’s Flint, MI, past when he was hired in 2010?
Why was Marc Puckett put on leave in Costa Mesa before his resignation in 2009?
Why was Marc Puckett dismissed from his position in Eastpointe, MI, prior to working for Flint?
Is Marc Puckett’s Finance Department making correct pension transfers to its retirement fund?
Is Marc Puckett’s Finance Department paying the appropriate amount of taxes?
Will Marc Puckett under-invest in the Town’s water system, as he did in Flint, if a takeover is successful?
With Puckett’s approach to finance — which this group has often called a "shell game"—how do we know that the numbers that Puckett is presenting are reliable?

Lastly …

… will Apple Valley become the next Flint, Michigan?

Sources 1 Fonger, Ronald. "Finance Director Resigns Under Fire of Pension Flap." Flint Journal, February 3, 1999.
2 Fonger, Ronald. "Flint to Boost Pension Fund City to Add $1.1 Million." Flint Journal, February 24, 1999.
3 Fonger, Ronald. "Retirement Panel Urges ‘Immediate’ Audit of Plan." Flint Journal, February 2, 1999.
4 Fonger, Ronald. "Finance Director Resigns Under Fire of Pension Flap." Flint Journal, February 3, 1999.
5 Fonger, Ronald. "$9-Million Pension Fund Transfer Raises Questions." Flint Journal, January 30, 1999.
6 Fonger, Ronald. "Retirement Panel Urges ‘Immediate’ Audit of Plan." Flint Journal, February 2, 1999.
7 Fonger, Ronald. "Former Finance Director Lashes Back at Critics, Hints at Suit." Flint Journal, February 10, 1999.
8 Fonger, Ronald. "Finance Director Resigns Under Fire of Pension Flap." Flint Journal, February 3, 1999.
9 Ibid.
10 Fonger, Ronald. "Former Finance Director Lashes Back at Critics, Hints at Suit." Flint Journal, February 10, 1999.
11 Fonger, Ronald. "Flint to Boost Pension Fund City to Add $1.1 Million." Flint Journal, February 24, 1999.
12 Fonger, Ronald. "Retirement Board Splits Over Need for Independent Manager." Flint Journal, February 3, 1999.
13 Fonger, Ronald. "Audit Details Shortfalls In Financial Procedures." Flint Journal, September 9, 1999.
14 Fonger, Ronald. "Flint Could Owe State Millions Some Industrial Facilities Taxes That Have Not Been Paid Since 1996." Flint Journal, March 30, 1999.
15 Fonger, Ronald. "Audit Details Shortfalls In Financial Procedures." Flint Journal, September 9, 1999.
16 Ibid.
17 Fonger, Ronald. "Ex-Finance Director Cashes In on $6,000 in Unused Vacation Time." Flint Journal, March 26, 1999.
18 Ibid.
19 Fonger, Ronald. "Audit Details Shortfalls In Financial Procedures." Flint Journal, September 9, 1999.
20 Heller, Andrew. "City chaos makes good copy." Flint Journal, August 15, 2001.
21 Fonger, Ronald. "Retirement Panel Urges ‘Immediate’ Audit of Plan." Flint Journal, February 2, 1999.
22 Fonger, Ronald. "Former Finance Director Lashes Back at Critics, Hints at Suit." Flint Journal, February 10, 1999.
23 Machniak, Christofer. "City’s finance department: Better or worse?" Flint Journal, February 23, 2002.
24 Fonger, Ronald. "Finance Director Resigns Under Fire of Pension Flap." Flint Journal, February 3, 1999.
25 Pak, Ellen. "City puts finance chief on leave." Orange County Register, August 31, 2009.
26 Cabe, Matthew. "27 years of service." Apple Valley Review, December 16, 2015.
27 Angelo, Linda. "Folks Soaked by Water Bills May Get Relief." Flint Journal, April 3, 1997.
28 Ibid.
29 Kennedy, Merrit. "Lead-Laced Water in Flint: A Step-By-Step Look At the Makings of a Crisis ." NPR, April 20, 2016.
30 Jones, Tim. "Recall vote aggravates Flint’s crisis, tensions ." Chicago Tribune, March 18, 2002.
Post Wed Mar 15, 2017 2:49 pm 
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untanglingwebs
El Supremo

The Stanley administration demonstrates the need for proper vetting of key appointees.

Steve Waller- embezzlement of Adopt a Park funds
Makokha- prison for bribery, some which involved Harold Hampton and North End Police precinct
Embezzlement of money from farmer's market
Charles Winfrey-subject of campaign finance complaint for Mayor's Ball by interim Ombudsman Ramona Sain.
Post Wed Mar 15, 2017 2:59 pm 
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untanglingwebs
El Supremo

Apple valley, California even blames Puckett for the water crisis.
Post Wed May 03, 2017 5:13 pm 
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untanglingwebs
El Supremo

20010815 City chaos makes good copy - What are we doing?
https://www.waterwedoing.website/docs/2001/20010815-FJ-city-chaos.php
Aug 15, 2001 - Let me answer collectively: Are you nuts? This guy is black gold, copy-wise. Texas tea. And I'm Jed Clampett. Sure, the city needs a change in leadership. Sure, Flint's a mess and getting worse by the minute. And, sure, the Woodman simply hasn't done the job. But recall him? Hello? Leaders like this don't ...
Post Sun Mar 18, 2018 12:36 pm 
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untanglingwebs
El Supremo

Flint to boost pension fund (February 24, 1999)
City to add $1.1 million

By Ron Fonger, JOURNAL STAFF WRITER

The city will deposit an additional $1.1 million into its retirement system today — the minimum amount of interest officials say is owed to the fund because of past failures to transfer money to the proper pension accounts.

City Administrator David Ready said today’s transfer comes on top of $21 million in employee and employer contributions transferred since December when former Finance Department Director Marc Puckett reported the transactions had not been made for two years.

Puckett resigned abruptly from his position this month but has said the failure to make the transfers, despite warnings from auditors, was unintentional.

Members of the city Retirement Board continue to sort out how much the pension system is due because of lost interest income. Ready said, however, the $1.1 million represents an estimate by auditors of the interest earned on the $21 million while it was in the improper account.

Hugh Rose, vice chairman of the Retirement Board, said Tuesday that more money will be due the retirement system because of Puckett’s failure to see that the pension money was invested properly.

I think what it would have earned is greater than that ($1.1 million), Rose said during the board’s meeting Tuesday.

The board oversees an $860-million pension system.

A preliminary review of the matter by the Michigan Department of Treasury has concluded that while the city made employee and employer pension contributions for the two years in question, it failed to make transfers to the proper account within the retirement fund. The state’s investigation remains open.

Puckett has called the pension controversy an election-year attempt to try to get the mayor (Woodrow Stanley).

Ron Fonger covers Flint city government and Bishop Airport. He can be reached at (810) 766-6317.

Copyright Flint Journal / MLive Media Group (mlive.com). Used with permission.
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untanglingwebs
El Supremo

AFSCME Local 1600

February 5, 1999

Mr. David Ready
RE: Comments as reported on the news

I am writing to express my displeasure at the comments in the newspapers and on the television regarding the pension fund snafu. I am also sharing a copy of this letter with the council as the comments were made during the committee meetings for the Flint City Council.

I was appalled to hear where blame was being laid for this incident. I think it is time for people around city hall to start practicing what I would refer to as Trumanism. "The buck stops here".
Post Sun Mar 18, 2018 12:46 pm 
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untanglingwebs
El Supremo

With the description given in the media, there can only be one person in Finance you were referring to,and that employees coworkers, and others around City Hall know who it was you were referring to. Personally, I am tired of watching the hand signals that go into motion whenever there is an incident in City hall. The finger pointing starts until some laborer ends up with no one to point to.

Let me set the record straight (and in case of leaks, I will not be using the names of those employees to prevent any more embarrassment heading their way.)

The first employee who left the position as an accounting supervisor left on or about October 0, 1996. That employee position has not been filled. The employee referenced in the media was never trained in this area because they are not authorized to do transfers to the pension fund.
Post Sun Mar 18, 2018 12:58 pm 
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untanglingwebs
El Supremo

I have found through my own investigation that some supervisors were questioning why there was so much money in the accounts and questioned that months ago only to have the questions raised fall on deaf ears.

While the snafu appears to be an embarrassment, didn't the City gain some big benefits through this?

For example, the city's bond rating went up making it easier to sell bonds dor such things as the IMA renovations? The City also gained by obtaining funding for short term losns, did they not? Surely these were major pluses. A direct benefit of the "error" if you will.

I have refrained from going to the media with this, but I want you to know exactly how I feel about the good people of AFSCME Local 1600 catching the dirty end of the stick when something goes wrong. Yes, our members are not perfect, and yes we all make mistakes, but when something like this occurs and our members get the blame for things way beyond their control, it is time for someone to step up to the plate and say, "The Buck Stops Here."
Post Sun Mar 18, 2018 1:10 pm 
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untanglingwebs
El Supremo

It was somewhat refreshing to see Mr. Puckett take the heat for this in the Jornaland letter to the editor to Councilman Horrigan, "unfortunately, I failed to follow up on this to ensure that these work assignments were completed."

However, that was after a clerk and then an auditor were blamed for the fiasco.

It is my hope that in the future, there is some kind of pseudo investigation before the finger pointing starts. I learned in elementary school that when one finger is pointing out to others, there are still three pointing back at myself.

I hope that the employee(s) who feel unduly blamed for this mess, can recover from the embarrassment that this has caused them. Quite frankly, I never realized just how much authority our members had around city hall.

Cordially,
Guy F.Baumgart
Grievance committee Chair.
Post Sun Mar 18, 2018 1:28 pm 
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