Committee on Ways and Means

Regular Meeting

Lansing, MI · September 25, 2020

Minutes

MINUTES Committee on Ways and Means Special Meeting Friday, September 25, 2020 @ 8:30 a.m. https://us02web.zoom.us/j/84745102107; ID: 847 4510 2107; Dial In: (312) 626 6799 CALL TO ORDER The meeting was called to order at 8:30 a.m. Members Present via audio/video Council Member Carol Wood, Chair Council Member Peter Spadafore, Vice Chairperson-left meeting at 9:34 a.m. Council Member Brian T Jackson, Member- unexcused OTHERS PRESENT Sherrie Boak, City Council Office Manager Jim Smiertka, City Attorney Lisa Hagen, Assistant City Attorney Robert Widigan, Finance Director Judy Kehler, Chief Strategy Officer Heather Sumner, OCA Joel Mires J Roberts Julia Hillery Keller (no last name given) Kim Lawrence Linda Shanchez-Gazelle, HR Director Lowell Nash Marie Rosicky Mark Parker Dennis Parker Mickey (no last name given) Nancy (no last name given) Nick Tate, Deputy Mayor P Nash Robert Davis Ryan Wilcox Sandra Schultz Sara Morrison Scott Dedic Scott Ellis Susan Rouse William Wright Patricia Nash Sandra Schultz Amy Kraus Barb ( no last name given) Ben Bakken, FHT Cheryl Baker Dan Riedel Deb (no last name given) Debbie (no last name given) Del Costaine Elizabeth O’Leary, HR Eric Scorsone Eric Tumbarella Frank D Holmes Sam Colgrove Renee Korr Minutes MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE MINUTES FROM SEPTEMBER 10, 2020 AS PRESENTED. ROLL CALL VOTE, MOTION CARRIED 2-0. Public Comment No public comment at this time. Discussion/Action: UPDATE – RFP on External Auditing Firm (Finance Director) Mr. Widigan confirmed an RFP was issued and the City did receive five (5) interested parties, including the former Rehman Robson. The City chose Maner Costerisan based on experience with local governments and company responsibilities. Mr. Widigan confirmed they are currently working with this firm via weekly calls and providing them all the information they need. Council Member Wood asked if there was a signed contract, and was told they have signed on for 2020- 2024. Mr. Widigan stated he would work with the firm on scheduling the annual meeting with the Council President. No public comment at this time. DISCUSSION – CSO & Finance Director Update on Outside Counsel Expenses Mr. Smiertka acknowledged that based on the Committee request in August, his office began the initial work on this project since they would have all the initial documents. He added they no longer have a contract the 3rd party, Gallagher Bassett, they have become a member of the Michigan Municipal Authority and perform the administrative function. The OCA reviews all outside attorney bills, even if risk management engages. Over the last year there has been 30 law suits and any marihuana lawsuits have been handled in house; there is no criminal prosecution in this report, however it included the hiring of an auditor for expenses and expert witnesses. Mr. Smiertka concluded by stating when his office was complete with their role in this request, it went onto the CSO and Finance director, and in the future they intend to work with the Council Internal Auditor. Council Member Spadafore asked why the expenses have gone down, and Mr. Smiertka admitted that his predecessors practice was to send everything out. Council Member Wood asked about the IRS reporting. Mr. Widigan confirmed the City was successful with the fines and their work with Plante Moran. They have received word the fines were waived, however are waiting for the official letter in the mail. Council Member Wood asked for the OCA to provide a breakdown on the $165,290 spent on Plante Moran and Mr. Widigan stated he would confirm if those charges were coming out of the Finance department or the OCA. DISCUSSION – City Retiree Healthcare Barb (no last name given), inquired to how this would impact retirees already in a medical treatment. Mr. Costain, LPD retiree, spoke in opposition to the changes, appealing the retirees have no representation. Ms. Hillery spoke in opposition to the proposal and voice her concerns for retirees currently already in medical treatments. Mr. Ellis stated his confusion with the suggestion, since he sat on the FHT in the past and this was not suggested Ms. Riedel first noted she never got a letter that some retirees are referencing and then spoke in opposition to the proposed changes, and financial burden. Ms. Morrison spoke in opposition. Mr. Wright spoke in opposition and asked how the Mayor had obtained the company handling this. Mr. Mark Parker spoke in opposition to the proposed changes and lack of communication. He confirmed that when he was steward the union proposed cost proposals, but the City did not want to negotiate. Mr. Colgrove spoke in opposition, noting strikes might be considered if the City does not honor the good faith act and stick to arbitration. Ms. Korr spoke in opposition to how the Mayor determines where the funding goes. Mr. Parker stated he too was part of the FHT under Mayor Bernero and decisions were made but everyone was excluded. Mr. Parker went onto reference the Segal Report which provided 7 avenues the City could take and the actuarials that were done on that. Mr. Parker asked the City to provide details on what the impact of this will be. He concluded by stating his frustration in a recent contract negotiation 9 months earlier and this not being any topic of discussion at that time, therefore stated the City bargained in bad faith, and they should see the actuarial numbers so they can see the history and how the City got to where we are. Mr. Mires spoke in opposition to the changes. Mr. Wilcox spoke in opposition and short notice of the new plan. Council Member Wood asked Ms. Kehler to review the new plan, report how it came about and where it is currently. Council Member Wood set a special Committee on Ways and Means for Friday, October 2, 2020 at 8:30 a.m. Council member Spadafore left at 9:34 NO QUORUM OF COMMITTEE PRESENT AT THIS TIME SO MEETING IS ADJOURNED AT 9:34 A.M. AND ANY FURTHER DICUSSIONS AND COMMENTS ARE PART OF AN INFORMAITON MEETING. ADJOURN Adjourned at 9:34 a.m. Submitted by, Sherrie Boak, Council Office Manager Lansing City Council Approved by the Committee on October 2, 2020 TOPICS IN INFORMATIONAL PORTION Council was not present or part of any discussions on these proposed changes. Request on the cost for the firm handling this. (CSO) Who applied for this project. What was the criteria the Administration used to pick this specific company. What is the cost in hiring them. What was the RFP used to review the plans. Provide copies of the five (5) plans. Provide the actuarial used to determine what savings there could be. Provide the new plan. CSO, Finance and HR work on a comparison to show multiple options with different retirees; what their cost is now and what the cost will be with the new plan.

Agenda

AGENDA Committee on Ways and Means Friday, September 25, 2020 @ 8:30 a.m. https://us02web.zoom.us/j/84745102107; ID: 847 4510 2107; Dial In: (312) 626 6799 email comments prior to the meeting to sherrie.boak@lansingmi.gov UPDATED 9/22/2020 Councilmember Wood, Chair Councilmember Spadafore, Vice Chair Council Member Jackson, Member 1. Call to Order 2. Approval of Minutes  September 11 , 2020 3. Public Comment on Agenda Items 4. Discussion/Action: A.) UPDATE – RFP on External Auditing Firm (Finance Director) B.) DISCUSSION – CSO & Finance Director Update on Outside Counsel Expenses C.) DISCUSSION – City Retiree Healthcare 5. Other 6. Adjourn With Executive Order 2020-4, Governor Whitmer declared a statewide State of Emergency due to the spread of the novel coronavirus (COVID-19). To mitigate the spread of COVID-19 and to provide essential protections to vulnerable Michiganders and this State’s health care system and other critical infrastructure, it is crucial that all Michiganders take steps to-limit in-person contact, particularly in the context of large groups. Therefore, the above meetings will be conducted via audio/video conference. The meetings are being held electronically in accordance with the Open Meetings Act in an effort to protect the health and safety of the public. Members of the public wishing to participate in the meeting may do so by logging into or calling into the meetings using the website or phone number above, and meeting ID provided. Michigan Executive Order 2020-154 provides temporary authorization of remote participation in public meetings and hearings. Persons with disabilities who need an accommodation to fully participate in these meetings should contact the City Council Office at 517-483-4177 (TTY 711) 24 hour notice may be needed for certain accommodations. An attempt will be made to grant all reasonable accommodation requests. DRAFT MINUTES Committee on Ways and Means Special Meeting Friday, September 11, 2020 @ 8:30 a.m. CALL TO ORDER The meeting was called to order at 8:30 a.m. Members Present via audio/video Council Member Carol Wood, Chair Council Member Peter Spadafore, Vice Chairperson Council Member Brian T Jackson, Member- unexcused OTHERS PRESENT Sherrie Boak, City Council Office Manager Jim Smiertka, City Attorney Lisa Hagen, Assistant City Attorney Council Member Spadafore asked the OCA to provide an opinion on if the Council rules and/or Charter address absences or unexcused absences from Committee meetings without a request for recusal or it only applies to Council meetings. Mr. Smiertka stated he would research the question and Council Member Spadafore stated he could provide the response in email if he chooses. Minutes MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE MINUTES FROM AUGUST 28, 2020 AS PRESENTED. ROLL CALL VOTE, MOTION CARRIED 2-0. Public Comment No public present at this time. Council Member Wood stated at 8:46 a.m. the Committee will pause the meeting for a moment of silence for 911 remembrance. Discussion/Action DISCUSSION- Fiscal Year 2021/2022 Budget Priorities Council Member Wood turned the discussion over to Council Member Spadafore. Council Member Spadafore looked for a reexamination on how the Information Technology budgets are allocated. Mr. Smiertka added that the Committee should look at other departments as well. Council Member Wood added to the discussion that there are also expenses with rentals such as DRAFT vehicles, costs for street lights, etc. Council Member Spadafore added to the discussion his question as to why it would cost approximately $8,000 per employee for Information Technology, he then presented his suggested budget priority: Encourage the Administration to focus in on budget allocations and centralize the fees and costs associated with items such as Information Technology, utilities, etc. The Committee was encouraged with this task because it would create transparency and an understanding of the budget when departments have to set their costs annually for their budget proposals. Council Member Wood proposed a budget priority asking for language that would recommend the Chief Strategy Officer provide reporting on short and long term resolution for revenues and expenses. Council Member Spadafore concurred with the recommendation. Council Member Wood asked that the Finance Director be invited to the next meeting to discuss the progress on the RFP Council was told went out for a new auditing firm. Mr. Smiertka updated the Committee on their request at the last meeting for a report on outside counsel expenses. He stated the OCA would be reviewing it today and then sharing with Finance. He then responded to the earlier request on unexcused absence from Committee meetings, he noted there is a provision on forfeiture of office. 8:46 a.m. Moment of Silence Mr. Smiertka continued his explanation of Charter 3-204 that spoke to attendance at meetings, that could address compel the appearance of absent members. He added that it could also allow for an ordinance that would require attendance leading to forfeiture of office. He offered to continued researching into the Charter and the Council rules. Council Member Spadafore asked for research on the recourse of unexcused absence. Other ADJOURN Adjourned at 8:50 a.m. Submitted by, Sherrie Boak, Council Office Manager Lansing City Council Approved by the Committee on________________ INTENTIONALLY BLANK