Detroit residents surrounded by private security guards and Wayne County Sheriff Deputies during their protest against bank-imposed dictatorial rule over the United States' largest African American municipality. (Photo: Abayomi Azikiwe), a photo by Pan-African News Wire File Photos on Flickr.
11:52 am
detroitnews.com
Detroit — As City Council debates a controversial $3.4 million contract with the emergency manager's former law firm, Jones Day has already begun aiding the city in its restructuring work, Detroit's top lawyer said.
Interim Corporation Counsel Edward Keelean at a committee meeting on Wednesday told members the firm started working on March 15 "with my encouragement."
"There's a lot to do and they have resources to do a lot," Keelean said, adding Jones Day knows the contract still has to be approved.
Keelean said the firm is surveying the city's assets and liabilities and challenges including ongoing litigation and various budget issues being finalized for the upcoming fiscal year.
Wednesday's discussion over the six-month contract with the Washington, D.C., law firm comes a day after outraged residents gathered at Tuesday's City Council meeting to voice their opposition.
Council President Pro Tem Gary Brown and Kenneth Cockrel Jr. attended the committee meeting Wednesday that's chaired by Brenda Jones and includes members James Tate and Andre Spivey.
President Charles Pugh and members Kwame Kenyatta, JoAnn Watson and Saunteel Jenkins were not present at the committee as a whole session.
The committee ultimately approved a motion to vote on the contract at Tuesday's upcoming formal session, despite disagreement from Jones.
Jones, citing transparency, said she wanted to delay a vote on the contract to await a report from council's Research and Analysis Division.
"Does it matter whether or not we approve it Tuesday?" Jones asked her colleagues. "They are already doing work."
As Detroit's emergency manager, Kevyn Orr has the authority to approve or reject all city contracts.
Keelean said Orr initially joined members of his former firm at an initial meeting with Detroit over the legal services consulting contract, but it was before he was in the running for the emergency manager position, Keelean said.
Details of the Jones Day contract were negotiated between the firm and Mayor Dave Bing's office prior to Orr's appointment last month and did not involve him, Orr's spokesman, Bill Nowling has said.
Orr, who was a partner at Jones Day, has since resigned.
The state has agreed to pay 50 percent of the cost to retain such a firm, according to city administration.
Tate told Keelean Wednesday that he's concerned over the billable hourly rates outlined in the contract that he described as "extremely high."
The rates, Tate noted, range from $425 an hour to $1,050, for top attorneys at the firm.
Keelean told Tate that he believed the billing rates proposed by Jones Day were lower than a number of the other firms considered.
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