By Jim Bloch
Eileen Tesch, who records video editorials for Blue Water Healthy Living, made two accusations against Port Huron City Manager James Freed at the regular meeting of the city council, Sept. 8.
She accused Freed of working parttime for a recruiting firm, which she suggested was a conflict of interest, and of paying council member Bob Mozurak $12,000 for a painting job, which she considered unethical, all while was making more than $200,000 per year with the city.
Freed wasted no time in firing back at his accuser.
Freed’s city income
“That is a lie,” Freed said, referring to his city income, as heard on the recording of the meeting posted on YouTube. “What’s interesting about that lie is that she knows it’s not true, because I gave her 12 years of W-2s that I get from the city of Port Huron… So, she knows exactly what I make and it’s not nearly $200,000. I’m perplexed why she comes to every meeting and claims I make over $200,000 while she’s holding my W-2s.”
Tesch may have inadvertently answered his question during her public comment: “I’m here because he verbally attacked me in a public place and none of you ever said anything about it,” she said, referring to the council members.
Freed invited residents to pick up a copy of his W-2 form from City Clerk Cyndee Jonseck in the Municipal Office Center.
“His annual salary for 2024 was $173,959.50,” said Jonseck via email. “This year his salary will be $179,185.50.”
Freed’s 2024 W-2 from the city shows “Wages, tips, other comp” of $186,655.55.
“Please note that this also includes his auto and technology allowance,” Jonseck said.
Freed’s ‘side hustle’
Using her allotted four-minutes during the public comment portion the agenda, Tesch outlined her accusations.
“At the last Port Huron City Council meeting, I exposed that the current city manager, James Freed, has a side hustle, or should we say, inside hustle,” Tesch said. “He’s working for a company or owns the company – we’re still looking into that – but he’s listed as the lead executive recruiter for the recruiting firm called Pivot Group Municipal Services.”
Pivot’s website lists Kris Pence as principal of the firm, Freed as lead executive recruiter and Darin Dood as lead investigator.
“I questioned city council members last time – is this a conflict of interest? Is this an ethics violation?” Tesch asked. “I later learned that the HR department or some department sent out an ethics or conflict of interest questionnaire to all the employees.”
At the July 14 meeting – the same meeting at which Tesch made her original accusation — the council voted unanimously to receive and file the annual conflict of interest forms from the city’s director of finance. The “statements have been reviewed, and no discrepancies have been noted,” according to the notification.
“Question #5, particularly, asked city employees: Do you have approved outside employment in accordance with administration regulation 9-1?” said Tesch. “James Freed’s answer: ‘Yes, Pivot Group. Four to six hours a week after work.’ I contacted someone in Croswell, Michigan, his latest contract. The finance statement reported that he was paid – or the company was paid — $10,000…”
Under “Career Opportunities,” the Pivot website lists the city administrator job in Croswell and the city manager job in Boyne City.
Past clients of the company include the city of Albion, the village of Montrose, city of Portland, the Lapeer District Library, and the cities of Charlotte, Lapeer, Coldwater, Northville, Auburn Hills and Stanton.
“Now what was most revealing in this questionnaire,” said Tesch, “and that goes to all of you – the questionnaire says, regarding administrative regulation 9-1, that James Freed’s inside gig or outside employment must be approved by the city.”
Tesch said that some of the council members did not know about his Pivot Group work.
“Here he is, the city manager, making over $200,000 per year … and he’s got this outside gig going on. Who is he loyal to?” Tesch asked. “It’s one controversy after another…”
Freed said that he has been transparent about his consulting job.
“Every year I’m required to file a what’s called a conflict-of-interest form,” said Freed. “Every city employee, every council member is required to file that. On that form, we (can) list a whole host (of things), do we own property, do we do business with the city, just to make sure things are on the up and up. For the last four years, I have disclosed, and I have filed all the proper paperwork … (that I work) as a consultant in executive recruiting and municipal finance consulting.”
Freed said his consulting work consumes two to four hours a month, not two to four hours a week.
Freed said such work is common among city managers in the state and he called Tesch’s charge of unethical behavior “ridiculous.”
Mozurak’s painting
Tesch said Freed paid city council member Bob Mozurak $12,000 for a painting job.
“You couldn’t find any other painter?” Tesch asked. “We’ve got a controversial city manager and a council member that was appointed. $12,000. That’s a lot of dough between friends let alone people who are here to serve the public.”
Freed said that the city’s conflict of interest form asks employees to list any relationships that may give the appearance of impropriety. Freed listed Mozurak as a person he hired to do plaster repair and painting at his Port Huron home, which was built in 1937.
Freed said Mozurak is one of the most “highly respected painters and plaster repair people in the entire city.”
“Bob did a tremendous job…,” Freed said. “I think I paid him between $11.5 and $12 (thousand). If you compare, that’s actually on the cheap. He cut me a really good deal.”
Freed said he was not required to put that in his conflict-of-interest report.
“But I think if you give a council member some money, it should be disclosed to the public,” Freed said.
Private individuals are permitted to get their houses painted. But, where cities are required to seek sealed, competitive bids for larger purchases, private individuals are not.
Freed said that Mozurak independently had listed the Freed painting job on his disclosure form.
“So, we followed the public disclosure laws to the T,” said Freed.
He called Tesch’s accusations “disingenuous.”
Jim Bloch is a freelance writer based in St. Clair, Michigan. Contact him at bloch.jim@gmail.com.
