Subject: Re: Draft on Detroit Infrastructure Commitment-dfp v. 3
From: "Ann O'Leary" <[email-masked]>
To: John Podesta <[email-masked]>
Cc: Jake Sullivan <[email-masked]>, Ron Klain <[email-masked]>, Karen Dunn <[email-masked]>, Kristina Costa <[email-masked]>, Sara Solow <[email-masked]>, Nikki Budzinski <[email-masked]>, Hartina Flournoy <[email-masked]>, Robby Mook <[email-masked]>
Date: Sun, 6 Mar 2016 15:26:31 -0500

URGENT UPDATE: Flint is good and happy to have this announced but Denver
does NOT want us to announce b/c worried about message of Denver taking on
more debt

Ann O’Leary
Sent from my iPhone
(510) 717-5518 (cell)

On Mar 6, 2016, at 1:46 PM, Ann O'Leary <[email-masked]> wrote:

Will do with Randi - weave in Clinton story and make sure they release it
before tonight's debate.

And for HRC's TPs at TONIGHT at debate - here is what I suggest and here is
background:

   - We need to insist on Congressional and State action to fix the water
   infrastructure in Flint and the molded, crumbling schools in Detroit, but
   we cannot wait for their action.
   - I am proud that unions and their pension funds have stepped up to
   offer help. In Flint, while the Mayor is awaiting the federal and state
   resources to remove and replace the lead pipes, the Union Labor Life
   Insurance Company (ULLICO) will offer up to $25 million in “gap financing”
   in the form of low-cost loans so Flint can start this work immediately.
   - And in Detroit, the American Federation of Teachers just announced
   they will work to make sure that union pension funds can also be used to
   renovate and overhaul classrooms and school infrastructure in Detroit’s 97
   pubic school buildings. Of course, the state must act as a partner in
   addressing Detroit's public school debts, but the unions are doing more
   than their part to help fix these egregious problems.

BACKROUND:
*FLINT*

·      *CGI/Labor Infrastructure Pension Funds* – In 2014, some of the
largest pension funds that handle union pensions made a CGI commitment,
pledging to invest over $10 billion in infrastructure projects nationwide.
President Clinton encouraged this fund to help with Mayor Weaver’s plans to
replace the city’s lead pipes. Mayor Weaver’s Fast Start Plan would replace
the city's 15,000 lead pipes in one year. This $55 million project would
target high-risk households first, and expand in phase two to replace pipes
for all Flint water customers. While the Mayor is awaiting the federal and
state resources for the project, Union Labor Life Insurance Company
(ULLICO) believes they can provide $25 to $30 million in “gap financing” in
the form of a low-cost loan. They also have experience investing in and
managing municipal water systems (Rialto, CA). The Building Trades are also
an important partner on the workforce side. The Mayor said one of their
biggest challenges is "lack of capacity" and manpower to move this project
and will be working with the building trades to get the manpower she needs. The
Plumbers Union has provided early help (Chelsea visited the Plumbers Hall
to thank them when she went to Flint), but the city will likely need to
draw on the skilled trades from around the region to complete a project of
this scale.

*DETROIT*

*Outline of Detroit Infrastructure Commitment Announcement*

•      The American Federation of Teachers (AFT) has partnered with the
Amalgamated Bank, the National League of Cities and the First Five Years
Fund to launch a $100 million Education Infrastructure Fund.

•      This revolving loan fund provides affordable, flexible capital loans
to public school systems for capital improvements and other infrastructure
upgrades for early childhood facilities and K-12.

•      It provides for acquisition, construction and term financing to
build or improve classrooms..

•      The capital needs of the Detroit public schools are critical and
growing. The city’s public schools have limited availability to adequate
facilities, and a dearth of low cost capital providers.

•      Access to affordable capital will allow Detroit schools to renovate
classrooms to provide for a healthy & safe learning environment.

•      The state of Michigan will serve as a critical backstop in the
restructuring lead by transition manager Judge Steven Rhodes.

•      The labor movement, together with its asset manager partners and
other stakeholders (North America’s Building Trades Unions and the Kresge
Foundation) commit to provide the following for Detroit’s schools;

o   Low-interest loans, technical and business assistance and energy audits
to upgrade heating and water systems, retrofit lighting and replace
inefficient windows, and provide for removal and abatement of lead, mold
and asbestos;

o   Work closely with the Mayor, community, Detroit Public School District
and Judge Rhodes and other stakeholders to renovate and overhaul classrooms
and school infrastructure in Detroit’s 97 pubic school buildings. This
effort is conditioned on local control and the state acting as a partner in
assuming and Detroit public schools debt, and in backing any new financing;

o   Other projects as mutually agreed;

o

•      *Our consortium sets a goal of deploying $50 million in capital over
the next year to achieve the goals outlined above*.
•      In the event the local landscape is stabilized and strengthened with
the return of local control to the people of Detroit and the creation of a
genuinely local entity with broad authority  to oversee new schools,
interventions, and closures, we anticipate exploring the possibility of
committing even more capital and support to all public schools in the City.”On
Sun, Mar 6, 2016 at 1:27 PM, John Podesta <[email-masked]> wrote:

> He's leaving for North Carolina so highlighting will need to be done on
> social or by her. We need Randi to weave Clintons into
> story if possible
>
>
> On Sunday, March 6, 2016, Ann O'Leary <[email-masked]> wrote:
>
>> Yes, my feeling is AFT and ULLICO announced these efforts and then WJC
>> highlights in next 48 hours. If that works, I'll get Randi out with it
>> today. Ok?
>>
>>
>> Ann O’Leary
>> Sent from my iPhone
>> (510) 717-5518 (cell)
>>
>> On Mar 6, 2016, at 1:14 PM, John Podesta <[email-masked]> wrote:
>>
>> Ann
>> Are you managing how and when this will get announced? It's moving fast
>> and Randi is driving but not sure how we fit into announcement
>>
>> ---------- Forwarded message ----------
>> From: *Randi Weingarten* <[email-masked]>
>> Date: Sunday, March 6, 2016
>> Subject: Draft on Detroit Infrastructure Commitment-dfp v. 3
>> To: John Podesta <[email-masked]>, John Podesta <
>> [email-masked]>, Ann O'Leary <[email-masked]>
>>
>>
>> John and Ann- this is a draft... Only a draft... Its gone back and forth
>> last nite and this am between AFT and Richard Tao of the Mayor's office....
>>
>>
>> <Outline of Announcement on Detroit Infrastructure Commitment-dfp v.
>> 2.docx>
>>
>>

-- 
Ann O'Leary
Senior Policy Advisor
Hillary for America
Cell: 510-717-5518