Promising to bring stability and integrity to the job in the wake of Kwame Kilpatrick’s felonious reign, he avoided scandal but also failed to right the city’s finances and prevent the appointment of an emergency manager to run the city.

A novice politician when he first took office, it was a job the former businessman and NBA star never seemed completely comfortable holding. It didn’t help that his administration was plagued by frequent changes in top-tier appointees.

Given that he was never really able to fine a groove and failed to generate much enthusiastic support among throughout his time in office, the surprising thing about his announcement wasn’t that he won’t be seeking re-election, but rather that he will look into the possibility of running for Wayne County Chief Executive in 2014.

Considering the scandals surrounding current Chief Exec Bob Ficano, maybe Bing is figuring that a campaign based on restoring integrity to office could again be a winner.

Things seem to be getting more twisted every day.

On Wednesday, as Channel 7’s James Kiertzner reported, it was disclosed that, “Orr was part of Jones Day team making a pitch to Detroit and the state in January to do restructuring and negotiating with creditors to try to avoid a chapter 9 municipal bankruptcy.”

Ed Keelean, the city’s acting corporation counsel, delivered that info to council.

So, we have Orr and his Jones Day amigos making a pitch to state and city officials in January. Then, on March 11, the Bing administration announces that it has selected Jones Day to oversee restructuring of the city. Three days later, Orr is appointed by the state to be Detroit’s emergency manager. A that point he’s still a partner at Jones Day; he resigned from the firm one day after his appointment was confirmed.

On March 15, the day Orr starts work, Jones Day also begins working for the city.

If that all seems like an uncomfortably cozy arrangement that’s a little to coincidental to believe, well … don’t worry. The Bing administration, along with Keelean, say that the selection of Jones Day was made through a competitive bidding process and was done completely independent of Snyder and his decision to make Orr the emergency manager.

As we reported previously, one of Jones Day’s many corporate clients is Bank of America Merrill Lynch, which is involved in negotiations over a credit swap default that could cost the city as much as $400 million. (Bank of America Merrill Lynch is one of three creditors involved in those negotiations.)

Again, don’t worry. Keelean told the City Council that Jones Day has promised to seek conflict of interest waivers from any of the law firm’s clients involved in legal actions with the city.

The online publication The Am Law Daily checked with several experts, and the consensus was that there’s nothing inherently unethical with what’s happening here.

“A trio of ethics experts contacted by The Am Law Daily Wednesday agreed that Orr’s ties to Jones Day do not by themselves create a conflict of interest and that the city’s decision to employ a firm that Orr is familiar with and knows to be experienced in restructuring work is a smart one.”

As for the fact that Jones Day is already hard at work on behalf of Detroit, even though the council hasn’t approved the contract — which is worth as much as $3.2 million, with the firm billing more than $1,000 an hour for its top lawyers — that’s really not an issue either.

That’s because the council’s debate over the issue is just so much window dressing. It might be useful in helping bring out information that might not have been revealed otherwise — such as Keelean’s revelation that Orr was involved in trying to get Jones Day the contract early on — but ultimately, the council has no decision-making power. Although scheduled to vote on the contract on Tuesday, the decision of whether to enter into a contract like this is entirely up to Orr.

Titled “Detroit’s New Bankster Plutocracy,” the biting commentary, among other things, takes local mainstream media to task for failing to provide any meaningful critical analysis of the historic changes to municipal governance now under way in Detroit and a handful of other cities across the state. (A plutocracy, by the way, is a society ruled by the wealthy.)

Stephens, in part, has this to say about the appointment of bankruptcy attorney Kevyn Orr as Detroit’s emergency manger (as well as the selection of his former firm, Jones Day, to oversee the city’s restructuring) and the potential outcome of the takeover engineered by Gov. Rick Snyder:

“… consider how little (practically zero) critical attention is focused either by dominant corporate media or prestigious intellectual elites on the extremely poor track record and policy ‘fit’ between the one-man corporate ‘emergency’ rule policy, and successful community revitalization, economic development and social progress.  In short, while an ‘emergency manager’ like Orr can slash spending and balance the municipal government budget, and may be able to negotiate credit extensions with Jones Day’s Wall Street clients (on favorable terms to creditors), he will then leave behind a community wracked by poverty, racism, crime, and looted infrastructure, with an eviscerated social capital and political leadership as a direct result of the state’s brutal, anti-democratic takeover.  Corporate media are blissfully untroubled by such elementary calculations of cost, benefit and agency.”

You can find the entire piece online here. If you are looking for the sort of thoughtful, well-documented lefty analysis, that is largely absent from local media, this is as good a place as any to start.

Two have been issued so far.

The first, signed on March 25, restored the salaries of Detroit’s mayor and City Council. See, under the law, the executive and legislative branches of government are immediately cut off once an EM is put in place. It’s up to the EM do decided if the duly elected officials will be allowed to draw salaries and benefits.

That way they are all certain to know exactly who it is that’s responsible for keeping their bread buttered. But that might just be the cynical view. So to would be the thought that Orr would want to keep a beholden council and mayor around to give his decisions the air of legitimacy, even though he doesn’t need their approval to do pretty much whatever he wants.

Or, we could take Orr’s words at face value and believe him when he declares, as he did in Order No. 1, that he’s “determined that, that the Mayor and City Couyncil will play a vital role in the collaborative process of addressing Detroit’s financial emergency, and ensuring continuity of essential services, and restoring financial stability….” That is why he’s decided that, “at the present time, the restoration of the salary, wages, compensation, and other benefits of the Mayor and the City Council is consistent with the financial and operating plan…”

We would think that phrase “at the present time” might be a little chilling to those whose salaries dangle from the thread held by Orr, but that’s just us.

Order No. 2 was Orr’s decision to accept the use of emergency vehicles — ambulances and police cruisers — being offered up by corporate donors. (Insert your favorite RoboCop joke here).

The answer it: We’re not completely sure. As with a lot of things related to the state’s medical marijuana law, these new changes could take a while to sort themselves out.

Take the change that extends from one to two years the time a state issued patient card is valid. At first glance, that looks like completely positive change. And maybe it is. But as attorney Matthew Abel points out, another change to the law — the one requiring doctors to conduct follow-ups after a patient has been certified to learn if the medicine is working.

What if that doesn’t occur? Does that mean, say, a low-income patient with no health insurance who gets a card for two years but doesn’t return to the doctor might be subject to prosecution?

And is there any law saying that a patient given prescription medicine for pain has to consult with a doctor afterward to verify that it is working?

The sponsor of one of the bills that went into effect Monday, State Rep. Phil Cavanaugh (D-Redford Township), told the Associated Press that lawmakers were concerned that certifications were too easy to obtain.

“Some out-of-state doctor from coming in, renting a hotel room, writing these things and then leaving town,” Cavanaugh told the wire service.

But in tightening regulations, did lawmakers create new obstacles for patients on low incomes, or those without medical insurance?

Take the provision that medical records need to be provided to doctors issuing certificates. What if no such records previously exist?

In some ways, it seems, changes that we’re intended to provide clarity might just have created new questions.

Stay tuned for more coverage of this issue by the Metro Times in coming weeks.

Sharpton, head of the National Action Network civil rights group, pledged that thousands of protestors from around the country will soon come to Detroit to stage a mass march and to participate in nonviolent civil disobedience actions.

“This is a local issue, but it is a national struggle,”  said Sharpton, who led a procession of about 100 people down W. Lafayette Street to the Theodore Levin U.S. Courthouse, where the lawsuit was filed late Wednesday.

“If you can get away with it in Detroit,” he added about the controversial law that took effect Thursday, “then it can happen all across the United States.”

The federal compliant was filed on behalf of specific Detroit municipal union officials, school board members and clergy, as well as various elected officials from the cities of Pontiac, Flint and Benton Harbor — which are also under the rule of emergency managers. Gov. Rick Snyder and state Treasurer Andy Dillion are named as defendants.

“Through its provisions, Public Act 436 establishes a new form of local government, previously unknown within the United States or the State of Michigan, where the people within local municipalities may be governed by an unelected official who establishes local law by decree,” the suit alleges.

The law, passed during a lame-duck session of the Legislature in December, allegedly violates protections guaranteed under the U.S. Constitution including due process, equal protection, collective bargaining rights and voting rights.

Among other things, it is alleged that, as a result of the way the law has been implemented, African-Americans are disproportionately targeted. Of the 10 cities no under either an emergency manager or a consent agreement, eight has African-American populations above 50 percent. In addition, 52 percent of the state’s African-American population is “now under the governance of an emergency manager or consent decree.

Organizations involved in the suit include Michigan AFSCME Council 25, Sharpton’s National Action Network, the Rev. Jesse Jackson’s Rainbow PUSH Coalition, the Detroit Council of Baptist Pastors, and the law firms Miller Cohen PLC and Bertram L. Marks’ Litigation Associates PLLC. Also involved are three nonprofit legal organizations: the Sugar Law Center for Social and Economic Justice; Detroit and Michigan Lawyers Guild; and New York’s Center for Constitutional Rights.

The complaint seeks a declaration that the law is unconstitutional, and an injunction preventing emergency managers from exercising any of the sweeping powers conveyed to them under PA 436.

At a press conference inside the Coleman A. Young Municipal Center, Orr touted the need for cooperation.

“I want to offer a sincere olive branch and opportunity to work together,” Orr, according to published reports, said of City Council. “I envision them participating in this process to the extent permitted by law.”

Outside in the snow, the talk was of resistance.

As with a press conference held last Friday, and at an event held Saturday at Detroit’s Historic King Solomon Baptist Church, both the speakers and the crowd of protesters were predominantly African-American.

The theme linking all three events was the call for a mass movement utilizing non-violent civil disobedience as a way to protest the state’s takeover of Michigan’s largest city. The issue of minority voting rights has been at the forefront of the debate.

In addition to Monday’s protest at city hall, the Rev. Charles Williams II planned to lead busloads of Detroiters in a protest outside the Cleveland offices of the Jones Day law firm. Orr was a partner at that firm until his appointment by the state to be emergency financial manager; Jones Day, according to news reports, is also the Bing administration’s choice to be the law firm hired to oversee the restructuring of Detroit city government.

The reason for doing so, Williams said during a public meeting Saturday, is that Detroiters protesting outside a Cleveland law firm is the kind of action that will generate widespread television coverage.

But what’s the plan beyond attempts to attract the media’s attention to their grievances?

Part of the answer to that question might be expanding the base of opposition.

Among those speaking outside city hall on Monday was Detroit attorney Jerome Goldberg, a leader of the Moratorium Now! anti-foreclosure movement.

At the protest, Goldberg passed out fliers that drew attention to his group’s investigation into so-called “credit default swaps” and the hundreds of millions of dollars they say these controversial deals have cost the city.

What he and other critics see are an emergency manager and law firm with strong ties to Wall Street and the big banks being given unprecedented control over the city’s fortunes.

In that respect, this protest is about more than voting rights in Detroit, or even the economic suffering the city has endured as the result of Wall Street’s predations.

“We must also link the struggle in Detroit with the plight of other cities throughout Michigan including Benton Harbor, Flint, Highland Park, Inkster, Ecorse, Muskegon as well as dozens of cities in California, Pennsylvania, Alabama, Rhode Island and other states facing a similar crisis,” the Moratorium Now! folks declared in the handout.

For some of those standing in the cold outside city hall, the question of the day — this first day of a history-making change in the governance of Detroit — is this: Will bridges be built and alliances formed, creating a true mass movement united in its opposition to what’s happening in Detroit and elsewhere; or will the main thrust of opposition remain what appears to be (on the surface anyway), a protest led mainly by African-Americans who, judging from the speeches so far, see this primarily as a voting rights issue?

That there would be organized opposition to an emergency manager taking control of Detroit is something that could have been expected.  What remains to be seen now is how many people will participate in the nonviolent civil disobedience actions the Rev. Jesse Jackson and others on Friday said will soon be launched.

Jackson and another civil rights icon, U.S. Rep. John Conyers, were among a group who held a press conference at the Coleman A. Young Municipal Center to announce the call to action. A coalition of union, church, civil rights groups and progressive activists will be key to the effort.

In addition to calling for “mass demonstrations,” there are also plans to fight the newest incarnation of the state’s emergency manager law, PA 436 – passed during a lame-duck session of the Legislature in December after a majority of Michigan voters rejected the previous law a month earlier — in court. A federal lawsuit challenging the constitutionality of PA 436, which takes effect March 28, is expected to be filed next week.

In addition to that action, Conyers, a Detroit Democrat and ranking member on the House Judiciary Committee, and U.S. Rep. Gary Peters, another Democrat whose district includes part of Detroit, sent a letter to Comptroller General Gene L. Dodaro asking for a General Accounting Office investigation into the emergency manager law in Michigan.

“We write to request that the Government Accountability Office (GAO) conduct a study of the Michigan emergency manager law, including the operation of federally-funded programs (such as education, transportation, Medicaid, and public safety) in jurisdictions declared in financial crisis, and placed under the authority of an emergency financial manager,” the pair wrote in a letter dated March 21.

“We have previously observed that the unilateral appointment of an unelected emergency manager raises serious legal concerns, including questions about minority voting rights and the laws’ constitutional legitimacy. Our letter to you today, however, focuses on fiscal accountability issues,” the two added.

In addition to that, the U.S. Department of Education’s Office for Civil Rights has said it is opening an investigation into allegations that the state of Michigan “discriminated against black and Hispanic students and parents in the Detroit Public School District … based on race and national origin by appointing emergency managers to the District but not appointing emergency managers to similarly situated predominantly white suburban school districts.”

The letter points out that, in regard to the allegations, opening an “investigation in no way implies that OCR [Office for Civil Rights] has made a determination with regards to its merits.”

At Friday’s press conference, attorney Herb Sanders said that lawsuits and federal investigations alone won’t be enough to halt the takeover. “This is not the time to engage in cooling off,” he said.

The actions won’t be aimed only at protesting the appointment of an emergency manager. The intent will also be to agitate for policy changes that will help stabilize the city fiscally.

“We need an urban plan for reconstruction” from the federal government, Jackson said.

Al Garrett, president of AFSCME  Local 25, took aim at bondholders and criticized the new emergency manager law for making payment of debt a priority. The “scoundrels” on Wall Street, who saddled Detroit with bad bond deals much in the same way inner-city residents were targeted with predatory lending schemes, should take a hit before any more city services are cut.

Jackson and Conyers said, in essence, that Detroit and the rest of Michigan have become ground zero in a much larger fight to protect the democratic process. An organizing meeting will be held at 10 a.m. Saturday, March 22, at the ‪Historic King Solomon Baptist Church‎, 6100 14^th St., Detroit.

The Eclectablog story starts by drawing attention to a phenomenon referred to as “zombie foreclosures.” As the name implies, they are nasty things. We quote electablog:

“Last week, Dave Dayen reported at the National Memo that some banks have begun foreclosure proceedings on homeowners and then simply walked away before taking possession of the property. This leaves evicted homeowners on the hook financially for the home they are no longer permitted to live in. What’s worse is that the banks don’t even have to inform the homeowner or the city of Detroit which no longer receives any tax revenue from the property.”

From that item (which includes a helpful clip of Dayen’s appearance on MSNBC), the story shifts to a recent Bloomberg piece detailing how big bondholders – including the Bank of America affiliate Merrill Lynch — are benefitting from Detroit’s debt:

“The only winners in the financial crisis that brought Detroit to the brink of state takeover are Wall Street bankers who reaped more than $474 million from a city too poor to keep street lights working. …

“Banks including UBS AG, Bank of America Corp.’s Merrill Lynch and JPMorgan Chase & Co. have enabled about $3.7 billion of bond issues to cover deficits, pension shortfalls and debt payments since 2005, according to data compiled by Bloomberg. Liabilities rose to almost $15 billion, including money owed retirees, according to a state treasurer’s review.

“The debt sales cost Detroit $474 million, including underwriting expenses, bond-insurance premiums and fees for wrong-way bets on swaps, according to data compiled by Bloomberg. That almost equals the city’s 2013 budget for police and fire protection.”

As a business publication, Bloomberg can’t exactly be accused of mouthing lefty propaganda. The debt issue is a legitimate one, as is its connection to the foreclosure crisis. That’s why we wrote about it one month ago. You can read that story, titled “Foreclosures, fraud and the big fight,” here.

At stake is the ability of Detroit’s elected officials to have at least some say in choosing how the city will deal with the financial emergency it faces.

Here’s what’s going on:

Last November, Michigan voters went to the polls and, by a margin of 52 to 48 percent, repealed Public Act 4.  That extremely controversial law allowed appointed financial managers to take control of financially troubled municipalities and school districts.

In the wake of last year’s referendum, state Attorney General Bill Schuette authorized the reinstatement of PA 72, a law passed in 1990 that allowed for the appointment of emergency financial managers, who had less sweeping powers than those allotted to emergency managers.

Because PA 72 was automatically revoked when PA 4 was signed into law by Gov. Rick Snyder in 2011, critics on the left claimed it was illegal for Schuette to reinstate it, but those objections were made in vain.

In addition, the Republican-controlled Legislature quickly set about crafting a new emergency manager law to replace PA 4. As pointed out by Wayne State University Law School Professor John Mogk, the Legislature couldn’t just duplicate a law that has just been rejected by voters. There had to be some substantive difference between PA 4 and whatever the Legislature and Snyder decided to replace it with.

The result was PA 436, passed during December’s lame-duck session.

Because PA 4 was successfully attacked for being inherently undemocratic, the new law attempted to walk a fine line. Instead of completely taking away the authority of duly elected officials, as the old law did, PA 436, in effect, told them they were going to have to swallow some harsh medicine, but it at least gave them a small selection of pills to choose from.

In fact, the new law was titled the “Local Financial Stability And Choice Act.”

Under this new law, if the state determines a financial emergency exists, the elected officials governing a city or school district can select one of four options: consent agreement, emergency manager (receivership), neutral evaluation process (aka mediation), or Chapter 9 bankruptcy. (For bankruptcy to proceed, the governor would have to agree.)

But here’s where things get really tricky.

PA 436 doesn’t actually take effect until March 28. So, if the city’s attempts to appeal the governor’s decision fail, and someone is appointed to take control of Detroit between now and then, that appointee would technically be an emergency financial manager …

Until March 28, at which that emergency financial manager automatically become an emergency manager, and the city is denied the opportunity to choose one of the other three options.

That’s the way PA 436 was set up, explains Terry Stanton, spokesman for Michigan Treasurer Andy Dillon.

In other words, the “choice” provision touted in PA 436 applies only to units of government where financial problems come to a head after March 28. For cities such as Detroit, on the other hand, it will essentially be as if PA 4 was never repealed.

They will have an emergency manager calling the shots, with the authority to void union contracts and sell off public assets — just as they could under the previous law. The only substantive difference is they seek to have the emergency manager removed after 18 months.

The resolution introduced by Cockrel and passed by the council “urges Gov. Snyder to respect the right of Detroit’s citizens to choose their own financial destiny by allowing Detroit’s duly elected representatives to make this important decision under Public Act 436…”

Look for more reporting on this issue in next week’s News Hits column.