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untanglingwebs
El Supremo
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Business cooperating with FBI in Macomb County corruption case
Rizzo Environmental Services working with feds, sources say
By Mara MacDonald - Reporter , Derick Hutchinson
Posted: 7:21 PM, October 14, 2016
Updated: 7:21 PM, October 14, 2016
CLINTON TOWNSHIP, Mich. - As the feds bring the hammer down on politicians in Macomb County, sources said there's more to come.
Clinton Township trustee Dean Reynolds is the first of Macomb County's elected leaders to get taken down by the FBI, but Local 4 sources said he won't be the last.
Sources told Local 4's Mara MacDonald that Rizzo Environmental Services has been working for the feds for months as they probe politicians who are alleged to have been shaking businesses down for cash and favors.
Reynolds was running for Township Supervisor, which is going to be pretty hard now that he's accused of shaking down businesses in Macomb Country for nearly $70,000 in cash and high-priced favors, like a free lawyer to handle his divorce.
The key company Reynolds was allegedly squeezing for money was Sterling Heights-based Rizzo Environmental Services.
"We have cooperated with law enforcement straight along from the moment we were asked until now," Joseph Munem, of Rizzo Environmental Services, said.
Lawyers for Rizzo are limiting what the company can discuss, citing the ongoing criminal probe. Rizzo won an $18 million garbage contract in Clinton Township through the competitive bidding process, and recently won an extension. They were the lower bidder.
But the FBI's probe doesn't stop at Reynolds, and it doesn't stop at Rizzo, although it is the company detailed in the criminal complaint against Reynolds.
Political circles in the country are abuzz with who will be next to receive a visit from the FBI and be led out in handcuffs. The feds confirmed they have wiretaps and video of what they call "systematic corruption" in Macomb County.
Clinton Township is already moving to remove Reynolds from the board at Monday night's meeting. |
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Sat Oct 15, 2016 2:01 pm |
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untanglingwebs
El Supremo
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| Sources told Local 4's Mara MacDonald that Rizzo Environmental Services has been working for the feds for months as they probe politicians who are alleged to have been shaking businesses down for cash and favors. |
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Sat Oct 15, 2016 2:02 pm |
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untanglingwebs
El Supremo
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Home News Bribery, graft and conflicts of interest
Clinton Township trustee Reynolds charged with bribery as part of countywide FBI investigation
By Jameson Cook, The Macomb Daily
Posted: 10/13/16, 11:59 AM EDT | Updated: 13 hrs ago
36 Comments
A Clinton Township trustee running for township supervisor is accused of bribery that federal officials say is part of a wider corruption investigation focusing primarily on Macomb County municipal government.
Dean Reynolds, 49, allegedly engaged in a pattern of corrupt activity, demanding and accepting as much as nearly $100,000 in cash and free legal services in exchange for official acts as a trustee in connection with an $18 million contract with the township, according to U.S. Attorney Barbara McQuade and the criminal complaint.
“Reynolds unwittingly led the investigation to other criminal associates who are expected to be prosecuted in the near future,” says the 14-page complaint filed Wednesday in U.S. District Court in Detroit.
During the wider, longer investigation, officials have employed telephone wiretaps, consensual audio and video recordings by cooperative individuals, undercover operations, physical surveillance, telephone tracking warrants, and subpoenas of financial records and other documents, McQuade said in a news release.
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“Law enforcement is committed to seeking out and prosecuting corrupt public officials in all areas of the Eastern District (of Michigan), including suburban communities,” McQuade said.
“Today’s arrest should serve as a reminder to the public of the FBI’s longstanding record of successful public corruption investigations in the Detroit metropolitan area,” added David Gelios, FBI special agent in charge of the Detroit office.
Reynolds was arrested Thursday morning at his home after seven FBI agents showed up at the township hall to arrest him there. He appeared at the court in the afternoon and released on a $10,000 personal bond. He is scheduled to return to court Nov. 3 for a preliminary examination.
Reynolds, a Democrat, faces incumbent Republican Supervisor Robert Cannon in the Nov. 8 election. His name will appear on the ballot.
Cannon said Thursday noted the allegations have not been proven but are “disconcerting.”
“This is a sad day for all the good, honest, hardworking people in southeast Michigan,” Cannon said. “I hope and pray he is the only one on our Board (of Trustees) who is accused of this. This is going to reflect poorly on all the honest people in Macomb County.”
The complaint, authored by FBI Special Agent Robert Beeckman, charges that since approximately 2012, Reynolds accepted multiple bribes from the representative of a company that was seeking and secured a significant contract with Clinton Township. In total, Reynolds accepted between $50,000 to $70,000 in cash from the company representative. In addition, Reynolds is seen in video accepting an additional $17,000 in cash payments from an undercover agent of the FBI.
In exchange for the payments, Reynolds voted on the board of trustees in favor of the company’s contract, and Reynolds provided information about the votes of other trustees, officials said.
A representative of the company that received the contract was confronted last January by FBI agents with evidence of bribery, and he became a cooperating witness, officials said. The company representative worked with the FBI in compiling additional evidence against Reynolds as well as the owner of a second company who the feds say paid Reynolds a $4,000 bribe through the representative of the first company. Reynolds also was given another $3,000 from an undercover FBI agent portrayed as being from the owner of the second company who has been investigated previously, the complaint says.
“The owner of Company B has been the subject of FBI investigations in previous years, based on numerous bribery allegations,” the complaint says.
In a July 24, 2015, recorded telephone call, Reynolds suggests the contract with the first company has a total value of about $18 million, the complaint says. In an Aug. 14, 2015, call with Reynold’s divorce lawyer, the company representative says the contract is an extension of an existing deal, the complaint says. In a Sept. 1, 2015, conversation with a township employee, the company representative describes Reynolds as a “shakedown artist” but that the result is a “big increase” in the contract.
“The contract is increased by a million six a year, so you know, if everything works out right, worst case, a million four a year,” he says. “So it’s a big increase. You know what I mean.”
Cannon said the only contract in the township that is as high as $18 million is with trash hauler Rizzo Environmental Services. The existing contract effective in 2014 was extended last February in a unanimous vote due to Rizzo increasing its service by providing trash bins.
Cannon said he was very pleased with the deal with Rizzo which includes a $1.75 per month price increase in 2017, raising the monthly price to residents to $14.75. The next fee increase, also $1.75, would take place in 3-1/2 years.
“They (Rizzo) do a fantastic job in the community and by far have the best prices,” he said.
Rizzo won the contract from Waste Management in 2010 through the bid process. Rizzo in 2014 gained an extension in a 4-3 vote although it was accepted without seeking bids.
Joe Munem, the director of government affairs and public relations for Rizzo Environmental Services, issued a statement late Thursday evening.
“We have been contacted by a number of people asking for our perspective on events that were reported today. In this, as in all matters, we’re cooperating with the legal authorities. We will follow their guidance so long as it may be required in the coming weeks.
“We will continue to focus on delivery of our services, and to demonstrate to our employees, partners and customers that we remain the premier provider of environmental services in our community,” Munem said in the statement.
Township Treasurer William Sowerby said the allegations demonstrate the need for ethics policies and competitive bidding in government.
“It creates good, transparent government,” Sowerby said.
An ethics policy “lets elected officials know there is a proper way of serving your community and being respectful in your position,” he said.
The complaint alleges that the company seeking the contract extension paid for Reynolds’ lawyers in his divorce from Tammy Reynolds, a former member of the Chippewa Valley Board of Education. Reynolds was dissatisfied with the first lawyer so he was given a second lawyer. The divorce was entered in April, according to Macomb County Circuit Court records.
“Reynolds and Lawyer B conspired about how to hide the quid pro quo relations between (the company) and Reynolds,” the complaint says.
The complaint shows the Aug. 14, 2015, recorded telephone call, which is lengthy, during which the company representative and the second lawyer discuss how to hide Reynold’s payment of $5,000 for a psychological evaluation related to the divorce. Reynolds “doesn’t have a whole lot of assets, he’s been through bankruptcy you know, OK,” the lawyer says.
The lawyer in the call says Reynolds paying the $5,000 would be suspicious.
“The minute they go forward, and he coughs up 5K, she’s (Tammy Reynolds) going to ask where it came from, and they are gong to subpoena it,” the lawyer says, according to the complaint. “She’ll (Tammy Reynolds) start calling, you know, she’ll tell the papers.
“Find someone you guys do work with and that’ll loan him 5K. ... We’ll reimburse him or something.”
In a July 23, 2015, call, Reynolds complains about the initial divorce lawyer. He threatens to stop helping the company representative.
“(My wife) is going around ruining my reputation and it’s gonna affect my election, and something’s gonna happen if I don’t get her out of that house. And I’ll call f------ (the company representative) and tell him that, you can kiss my ass goodbye ... cause your damn attorney isn’t doing her job.”
Federal attorneys would have to file an indictment for the case to proceed to a potential trial, officials said.
If convicted on the charges, Reynolds faces a maximum of 10 years in prison and a fine of up to $250,000.
Jameson Cook
My beat is the courts of Macomb County and general assignment. Read more of Jameson Cook's court coverage on his blog http://courthousedish.blogspot.com/ Reach the author at jamie.cook@macombdaily.com or follow Jameson on Twitter: @jamesoncook.
Full bio and more articles by Jameson Cook
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Sat Oct 15, 2016 2:19 pm |
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BillPayer
F L I N T O I D
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Trash Hauler in FBI Bribery Scandal Donated Generously to Politicians
October 15th, 2016, 7:45 AM
Share1
Featured_screen_shot_2016-10-14_at_8.12.17_am_23533
It's no surprise that a trash hauling company that does business around Metro Detroit would have generously contributed to politicians and special-interest groups.
Robert Snell of the Detroit News reports that Sterling Heights-based Rizzo Environmental Services, which finds itself in the middle of a large-scale FBI bribery investigation focused on Macomb County, has have
given more than $310,000 to politicians and special-interest groups
in recent years.
The company has suddenly been thrust in the public light since Thursday when federal authorities announced the first arrest and charges in the case against Clinton Township Trustee Dean Reynolds, a candidate for township supervisor, for allegedly
taking bribes in exchange for his vote on municipal contracts
.
In all, he his charged with accepting between $50,000 to $70,000 in cash from the company’s representative. Additionally, the feds allege that Reynolds accepted $17,000 in cash payments from an undercover agent of the FBI, with the payments being video recorded.
The News reports:
State and local campaign-finance records show dozens of contributions across Metro Detroit in recent years,
illustrating the scope of Rizzo’s political influence
at a time when the FBI and U.S. Attorney’s Office say they are investigating systemic corruption in southeast Michigan, primarily Macomb County.
A Rizzo spokesman acknowledged the company is cooperating with investigators after the
FBI said an unnamed businessman admitted bribing Reynolds in exchange for favorable treatment on an $18 million contract.
“In this, as in all matters, we’re cooperating with the legal authorities,” Rizzo spokesman Joseph Munem said in a statement. “We will follow their guidance so long as it may be required in the coming weeks.” Rizzo founder Chuck Rizzo Jr. and Chief Operating Officer Jeff Rizzo could not be reached for comment. |
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Sat Oct 15, 2016 2:31 pm |
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BillPayer
F L I N T O I D
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| I'm not sure about your local 4 post, it has conflicts with the deadline Detroit post. It seems to indicate at a minimum that Reynolds did not seek out the bribe with rizzo... So it's either third party interests (like Stanley is here), or the bribe can't from rizzo |
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Sat Oct 15, 2016 2:35 pm |
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untanglingwebs
El Supremo
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The two Macomb Daily stories have more FBI detail. The FBI has been working with Rizzo since January. They have tape recordings and video recording of Reynolds asking Rizzo and other firms for bribes. They also have other companies and possibly other trustees. This is a multi jurisdiction investigation with far reaching implications.
We may just have to wait until this plays out. The federal court will have the 14 page indictment. |
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Sat Oct 15, 2016 5:26 pm |
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untanglingwebs
El Supremo
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Sat Oct 15, 2016 5:57 pm |
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BillPayer
F L I N T O I D
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You're right, that does seem like a good source. As for speculation, they do seem to say that rizzo was confronted for taking a bribe... And then started working for them (FBI) .. so I guess it wasn't really incorrect.
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A representative of the company that received the contract was confronted last January by FBI agents with evidence of bribery, and he became a cooperating witness, officials said. The company representative worked with the FBI in compiling additional evidence against Reynolds as well as the owner of a second company who the feds say paid Reynolds a $4,000 bribe through the representative of the first company. Reynolds also was given another $3,000 from an undercover FBI agent portrayed as being from the owner of the second company who has been investigated previously, the complaint says.
“The owner of Company B has been the subject of FBI investigations in previous years, based on numerous bribery allegations,” the complaint says
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But you're right, it's too early to read to much into this story. It is alarming for our situation here in Flint though. |
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Sat Oct 15, 2016 7:03 pm |
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untanglingwebs
El Supremo
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| If there was a kickback or bribe, it should come out. |
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Sat Oct 15, 2016 9:44 pm |
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untanglingwebs
El Supremo
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Eastern District of Michigan
U.S. Attorneys » Eastern District of Michigan » News
Department of Justice
U.S. Attorney’s Office
Eastern District of Michigan
FOR IMMEDIATE RELEASE
Thursday, October 13, 2016
Clinton Township Trustee Arrested and Charged for Demanding and Taking Bribes
An elected Trustee of Clinton Township was arrested by the agents of the Federal Bureau of Investigation (FBI) today based on a criminal complaint charging him with demanding and taking bribes in exchange for his vote on municipal contracts, United States Attorney Barbara McQuade announced.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Dean Reynolds, 49, of Clinton Township, is charged with engaging in a pattern of corrupt activity, including demanding and accepting money and other things of value, in exchange for official acts as a Trustee. Reynolds’ arrest is part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County. The investigation has employed telephone wiretaps, consensual audio and video recordings by cooperative individuals, undercover operations, physical surveillance, telephone tracking warrants, and subpoenas of financial records and other documents.
The complaint charges that since approximately 2012, Reynolds accepted multiple bribes from the representative of a company that was seeking and that secured a significant contract with Clinton Township. In total, Reynolds accepted between $50,000 to $70,000 in cash from the company’s representative. In addition, Reynolds accepted an additional $17,000 in cash payments from an undercover agent of the FBI, with the payments being video recorded. In exchange for the money from the company representative, Reynolds sold his vote on the Board of Trustees in favor of the company’s contract, and Reynolds provided information about the votes of other Trustees.
“Corruption undermines the very nature of representative government, said U.S. Attorney McQuade. “Law enforcement is committed to seeking out and prosecuting corrupt public officials in all areas of the Eastern District, including suburban communities.”
“Today’s arrest should serve as a reminder to the public of the FBI's longstanding record of successful public corruption investigations in the Detroit Metropolitan area”, said, David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation. “Betrayal of the public trust for personal gain will always be an investigative priority of the FBI and our partners in Michigan”.
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Reynolds faces a maximum of ten years in prison and a fine of up to $250,000.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
Reynolds will be in federal court this afternoon at 1pm for his initial appearance on the criminal complaint.
The FBI requests that anyone having information regarding public officials accepting bribes is encouraged to contact the Detroit Division of the FBI at 313-965-2222. |
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Sun Oct 16, 2016 10:24 am |
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BillPayer
F L I N T O I D
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102 10/13/16 MOTION FEE PAID
RECEIPT# 00439897 AMT $20.00
103 SET NEXT DATE FOR: 10/17/16 10:00 AM
MOTION HEARING
RELIEF
REQUEST FOR HEARING ON A
MOTION/NOTICE OF HEARING/
PROOF OF SERVICE FILED
104 DEFT'S EMERGENCY MOTION FOR
DECLARATORY RELIEF FILED
105 10/14/16 MOTION FEE PAID
RECEIPT# 00439955 AMT $20.00
106 REMOVE NEXT EVENT: 10/17/16 10:00 AM
MOTION HEARING
107 SET NEXT DATE FOR: 10/19/16 9:15 AM
MOTION HEARING
ADJ'D FROM 10/17/16.
108 MOTION FEE PAID
RECEIPT# 00439971 AMT $20.00
109 SET NEXT DATE FOR: 10/19/16 8:30 AM
MOTION HEARING
INTERVENE
NOTICE OF HEARING & MOTION
FILED
110 AMENDED MOTION TO INTERVENE ON
BEHALF OF REPULIC SERVICES
FILED
111 REPUBLIC SERVICES' AMENDED
BRIEF OF ITS MOTION TO
INTERVENE FILED
112 CERTIFICATE OF SERVICE FILED
113 SET NEXT DATE FOR: 11/07/16 10:00 AM
SUMMARY DISPOSITION MOTION
NOTICE OF HEARING FILED
114 CITY OF FLINT'S MOTION & BRIEF
FOR SUMMARY DISPOSITION FILED
115 PROOF OF SERVICE FILED
116 10/17/16 PLTF'S ANSWER OT DEFTS'
EMERGENCY MOTION FOR
DECLARATORY RELIEF FILED
117 PROOF OF SERVICE FILED |
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Tue Oct 18, 2016 12:48 pm |
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BillPayer
F L I N T O I D
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118 10/18/16 REMOVE NEXT EVENT: 10/19/16 8:30 AM
MOTION HEARING
119 REMOVE NEXT EVENT: 10/19/16 9:15 AM
MOTION HEARING
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Arthur Woodson
The city pulled their motion for court today. Why do we still have two trash companies? The judge gave republic a 90 day contract. RTAB meets today at 1:00. The city is asking for $133,000 for Rizzo. |
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Wed Oct 19, 2016 6:57 am |
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untanglingwebs
El Supremo
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My friend just called me laughing about the dueling Trash Trucks. She and a relative were coming back from a shopping trip and went down Clio Road. They watched Republic driving down a street with no trash, so she stopped them and asked them why. They said they were making sure Rizzo didn't leave any trash behind.
Flip side of the story. She then stopped a Rizzo truck and asked them why they were driving down a street that had already been picked up. It seems they were checking up on Republic. My friend could hardly stop laughing. What a fiasco.
With your attention to detail, you would make a good investigative reporter. I sincerely hope you encounter some good reporters like Ron Fonger as they can give tips on accessing public information and building contacts. Both Fonger and Jim Kiertzner were valuable resources or me and they gave god tips.
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You would be a trusted politician as you give all indications that you would serve honorably. |
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Wed Oct 19, 2016 7:55 am |
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untanglingwebs
El Supremo
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quote:
BillPayer schreef:
102 10/13/16 MOTION FEE PAID
RECEIPT# 00439897 AMT $20.00
103 SET NEXT DATE FOR: 10/17/16 10:00 AM
MOTION HEARING
RELIEF
REQUEST FOR HEARING ON A
MOTION/NOTICE OF HEARING/
PROOF OF SERVICE FILED
104 DEFT'S EMERGENCY MOTION FOR
DECLARATORY RELIEF FILED
105 10/14/16 MOTION FEE PAID
RECEIPT# 00439955 AMT $20.00
106 REMOVE NEXT EVENT: 10/17/16 10:00 AM
MOTION HEARING
107 SET NEXT DATE FOR: 10/19/16 9:15 AM
MOTION HEARING
ADJ'D FROM 10/17/16.
108 MOTION FEE PAID
RECEIPT# 00439971 AMT $20.00
109 SET NEXT DATE FOR: 10/19/16 8:30 AM
MOTION HEARING
INTERVENE
NOTICE OF HEARING & MOTION
FILED
110 AMENDED MOTION TO INTERVENE ON
BEHALF OF REPULIC SERVICES
FILED
111 REPUBLIC SERVICES' AMENDED
BRIEF OF ITS MOTION TO
INTERVENE FILED
112 CERTIFICATE OF SERVICE FILED
113 SET NEXT DATE FOR: 11/07/16 10:00 AM
SUMMARY DISPOSITION MOTION
NOTICE OF HEARING FILED
114 CITY OF FLINT'S MOTION & BRIEF
FOR SUMMARY DISPOSITION FILED
115 PROOF OF SERVICE FILED
116 10/17/16 PLTF'S ANSWER OT DEFTS'
EMERGENCY MOTION FOR
DECLARATORY RELIEF FILED
117 PROOF OF SERVICE FILED
For a clearer understanding I always try to pull the case and read the allegations.. You an imagine my anger when I found out years ago that a specific court clerk was reporting to a rival reporter what cases I reviewed. And later I had a clerk related to a "person of interest" in a story I was working on. (trash related story) |
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Wed Oct 19, 2016 8:04 am |
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untanglingwebs
El Supremo
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Tentative deal being finalized that would put Republic on the job
By Damon Maloney | Posted: Wed 12:11 PM, Oct 19, 2016 | Updated: Wed 4:05 PM, Oct 19, 2016
FLINT (WJRT) - (10/19/16) - A tentative deal is being finalized that would have Republic Services picking up trash in Flint through Nov. 12, 2018 at a cost of about $7.4 million.
City Council President Kerry Nelson said part of the deal includes starting a new bid process for a contract that would follow.
Both sides - lawyers for city council and the mayor’s administration - are working on final paperwork that will need to be approved by council and RTAB.
Nelson said he hopes to have council vote on the deal on Monday.
Right after Wednesday's RTAB meeting, a loud altercation erupted involving Flint's city administrator, a local pastor and others.
The ordeal stemmed from an exchange City Administrator Sylvester Jones and Pastor Allen Gilbert started during the meeting.
We're told it was over differences in the trash saga.
It continued when the meeting ended.
That's when councilman Eric Mays joined in. He says it was to try to cool the situation.
Mays accused community activist Arthur Woodson of touching him. Woodson says it didn't happen.
The city administrator and pastor eventually left the room together and entered an elevator.
Mays and Woodson continued to argue in the hallway. |
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Wed Oct 19, 2016 3:23 pm |
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