Wortheimer is going over the communication between treasur and Kevyn Orr’s office and changes to documentation to the recommendation. Wortheimer wanted to know who spoke with whom, and there was a conference call between Treasury staffers and Jones Day attorneys
Dillon: I spoke to some lawyers over the phone, what they communicated to Kevyn Orr I don’t know.
Wortheimer: [talking about Dillon’s email and reads] “no mention of grs." What is grs?
Dillon: the general retirement system.
Wortheimer continues talking about Dillon’s email
Don’t think we are making the case in giving up so soon to reach an out of court settlement.”
Wortheimer: You believed that to be true when you wrote it on your computer July 10th?
Wortheimer shows a Dillon email that was in response to Kevyn Orr’s request for Chapter 9 where Dillon wrote, “I think there is a state court option to get retirees into a class.”
Wortheimer: Does this reflect your thinking at the time?
Dillon: Yes. That was my thought at the time I was never briefed at that time.
Wortheimer continues reading from the email with Dillon writing at the time, ‘I think we may want a take or leave it demand before we pull this trigger.”
Wortheimer: Was the trigger; Ch. 9?
Dillon: I thought that might have been beneficial.
Wortheimer: You write, 'I agreed with the recommendation but I don’t think that Orr made the case?” Was that the case in your mind?
Dillon: In the document that I read.
Wortheimer concludes his cross up next is Sharon Levine for AFSCME.
Levine is working on Dillon his recollections of the hiring of financial consultants, the city’s financial condition, and is moving into state revenue sharing.
Light Humor: At one point, there was an objection to a Levine question by the city. Asked and answered the attorney said. The judge said “many times.” Levine moved on.
On the subject of the tentative give back agreements struck with the city and its unions
Dillon: It would be a bad idea to enter into a three year collective bargaining agreement with unions.
Levine: Who told you?
Dillon: Huron consulting
Levine: Is it your belief the city’s pensions are underfunded?