Bay City officials say lobbying firm is bringing results; other elected leaders question the expense

By Shannon Murphy | The Bay City Times The Bay City Times

BAY CITY — For $10,000 a month, Bay City is paying a Washington, D.C., lobbying firm to be its voice in the nation’s capital.

The firm, called The Ferguson Group, says it helps Bay City by gaining access to federal legislators and agencies to advance city projects. And city officials are happy with the agency’s work so far.

“The city has big goals and big needs,” said Steven Black, Bay City’s Deputy City Manager of Economic Development. “And even if we are only partially successful with The Ferguson Group, we’ll receive a payment far greater than what we paid for this engagement.”

But Bay City’s representative in Congress, U.S. Rep. Dale Kildee, D-Flint, says claims are overstated that The Ferguson Group is winning the city federal dollars.

“(Past Times articles) mention that they helped secure money for the Uptown site,” Kildee said Friday. “I got them that money.”

Kildee says he’s never spoken with anyone from The Ferguson Group regarding Bay City or any other issues. And he disputes that the lobbying group played a significant role spurring recent investments by General Motors Co. in the Bay City Powertrain Plant.

He said the recent investments at Powertrain to build engine parts for the Chevrolet Volt and Cruze are the result of hard work by workers at the plant, union leaders and his staff.

“I’m chair of the Congressional Automotive Caucus,” Kildee said. “Every time we meet, we talk about Bay City and bringing more work there. I don’t recall ever seeing anyone from Ferguson there.”

Bay City’s relationship with The Ferguson Group began when the firm helped set up a Mayors Automotive Coalition, which former Bay City Mayor and current state Rep. Charles Brunner was part of and the city continues to be involved with.

As a member of the group, Brunner traveled to Washington, D.C., several times to meet with federal officials regarding the future of the automotive industry.

Bay City officials decided to retain The Ferguson Group as a lobbying firm in late 2009.

Last week, Bay City leaders agreed to extend the city’s contract with The Ferguson Group for at least one more year for $120,000, a cost similar to what other Michigan municipalities are paying the agency to represent them.

Commissioner John Davidson, 6th Ward, said he sees hiring the firm as a good use of city dollars.

“It’s just one foot in the door to find out what’s out there for the city to grow,” he said.

Black said funding for The Ferguson Group comes from the city’s Economic Opportunities Fund, which is replenished with money from the sale of tax-reverted properties.

He said “it’s hard to measure” the impact the company has had in Bay City, adding the firm does not provide the city with reports of what it has done, but that he speaks with company officials nearly every week for status updates.

Despite Kildee’s assertions, city leaders say The Ferguson Group was instrumental in helping the city receive a $200,000 Environmental Protection Agency grant for clean-up at the Uptown at RiversEdge site, a 40-acre, undeveloped parcel of land along the Saginaw River in downtown Bay City.

Black said this year, The Ferguson Group will focus on obtaining resources and funding for infrastructure and development of the Uptown site, as well as resources to improve sewer and water infrastructure and local roads and bridges.

Matt Ward is a partner with The Ferguson Group assigned to represent Bay City. He said the company isn’t a replacement for elected officials. Instead, he said the firm’s staff members serve as advocates for municipalities.

“We provide Bay City with the homework, the grunt work and the strategies to make the most smart and competitive requests to these congressional staff,” Ward said. “We’re just really the support staff.”

Ward said a lot of The Ferguson Group’s focus is on background work, including researching where funding is available, writing grants and preparing research for visiting politicians.

Randy Hannan, deputy chief of staff to Lansing Mayor Virg Bernero, says firms like The Ferguson Group can help municipalities navigate the sometimes turbulent waters of Washington.

“You’re not sure if you really know what you are doing to get the door to open and to find members of Congress to support you,” he said. “It’s a very difficult thing to do without the assistance of people that know Washington inside and out.”

The city of Lansing hired The Ferguson Group — for $120,000 per year — about three years ago and is one of about a dozen Michigan communities or organizations that employs the firm.

Lansing leaders credit the firm’s knowledge with helping bring about an $800 million trust fund for communities with now-defunct General Motors properties that need to be cleaned up and redeveloped. Lansing will receive about $15 million for cleanup, Hannan said.

“It would be nice if you could just drive out to Washington, knock on someone’s door and say, ‘We’d like to see this happen,’” he said. “But when you have what a lobbying firm brings to the table, that really helps you.”

Ward said while local officials are encouraged to travel to Washington and talk often with elected leaders, The Ferguson Group can help get access to elected officials from other states who can be helpful, as well as key staff in federal agencies that city officials may not know.

“Every senator or Congress member has an important role on committee,” Ward said. “We need to move things past people and make them understand why Bay City is important. It helps to have that national perspective we bring.”

Yet at least one Bay City resident feels the cost isn’t worth the payoff.

“I often wonder why they have to have lobbyists,” said Aaron Newberg. “You have Brunner in Lansing and representatives in Congress — isn’t that what they do?”

Newly elected U.S. Rep. Dan Benishek, R-Iron Mountain, who represents northern Bay County, said he has not met anyone from The Ferguson Group in Washington, although his tenure there has been just six weeks.

In general, Benishek said lobbyists can be effective tools for municipalities, but said cities must be fiscally responsible.

Bay City’s cost to hire The Ferguson Group is about average for other municipalities employing the firm, according to The Center for Responsive Politics, a nonprofit research group that tracks political spending.

Locally, Buena Vista Township in Saginaw County also has hired The Ferguson Group as a lobbying firm. City officials in Saginaw and Midland said they do not have lobbying firms.

Michael D. LaFaive, director of the Midland-based Mackinac Center’s Morey Fiscal Policy Initiative, said as Michigan continues to face fiscal challenges, it’s natural that communities will do all they can to try to get a chunk of federal money.

“I think they have to ask, ‘Has there been money generated from the federal government that exceeds what (a city) spends?’” he said. “The city government needs to show evidence that this lobbying works, especially before they layoff or threaten to layoff police or fire.”

And even Kildee, for his part, said The Ferguson Group could be doing things he is not aware of to secure money for the city.

“I have no objections to them having lobbyists if they feel they can afford it,” Kildee said. “The main thing is, I would like to meet with them so we can coordinate efforts.”