Elected Officers Compensation Commission

Regular Meeting

Lansing, MI · March 2, 2022

Minutes

MINUTES Elected Officers Compensation Commission Wednesday, March 2 @ 12:00 p.m. City Council Conference Room ROLL CALL Commissioner Speaker- Chairperson Commissioner Melot –Vice Chairperson Commissioner Member Huggler Commissioner Member McAlvey Commissioner Member Hoisington Commissioner Member Seabury Commissioner Member Young - excused OTHERS PRESENT Sherrie Boak, Council Staff Jim Smiertka, OCA Elizabeth O’Leary, Labor Negotiator Courtney Roberts, HR Jane DiSessa, Mayor’s Chief of Staff CALL TO ORDER Ms. Boak called the meeting to order ROLL CALL Chairperson Speaker called the meeting to order at 12:01 p.m. and did roll call. All members present except Member Young, who had informed the staff prior to the meeting. Minutes MOTION BY MEMBER HUGGLER AND SECOND BY MEMBER MELOT TO APPROVE THE MINUTES OF FEBRUARY 16, 2022 WITH THE CORRECTION TO MS. SPEAKER NAME. MOTION CARRIED 6-0. Public Comment No public present at this time. Discussion/Action ARPA Funds Ms. Boak clarified this was material requested at the last meeting and was obtained via the Resolution adopted by Council, in the packet. Per the meeting of February 16, 2022 Finance has been invited to the meeting of March 8, 2022 and will be able to elaborate then. Consumer Price Index Ms. Boak clarified this was material requested at the last meeting and was obtained via Mr. Lawrence with the Mayor’s office. Ms. DiSessa and Ms. O’Leary could not speak directly to this item, and it was determined that at the meeting of March 8, 2022 Finance has been invited to the meeting and will be able to elaborate. 2019 Community Comparisons – Pending Updates Ms. O’Leary and Ms. Roberts were able to provide an updated comparison dated 3/2/2022 which also included unsolicited information from Royal Oak on their elected official benefits. Ms. Roberts and Ms. O’ Leary informed the Committee they are still obtaining details from the outstanding communities and hope to have all the information before the next meeting. Past Recommendations Material was provided in the packet. Other Members held discussions with Ms. O’Leary and Ms. DiSessa on if the CPI is considered in negotiations at which Ms. O’Leary stated she is not able to speak on the negotiations. It was confirmed that Finance is included in negotiations. The Committee then asked about the City budget, and Ms. DiSessa returned to the meeting with information that there is a $230 million budget not including ARPA or the recent grants; of that $150 is General Fund. The ARPA of $24 million addresses revenue loss and was used in the general fund and parking, along with other needs. The Administration has determined instead of placing it in one year budget they are spreading those funds out over four (4) years. Mr. Smiertka suggested having Ms. Kehler, the Chief Strategy Officer present on the OPEB. Member Huggler proposed looking at suggestions from previous years where Council received salary but also per diem for each Council meeting; not the Committee meetings. Member Melot noted to the Committee that they need to consider that Council has full time jobs in addition to their elected position, and the Mayor and Clerk are full time employees. Member Hoisington asked if the Mayor had a vehicle and it was confirmed he is the only elected official with a vehicle. Member Hoisington then brought up the discussion on the Clerk’s duties for managing the Medical Marihuana Licenses. The members discussed what is tasked for that role, number of employees that handle it, what other tasks other communities might have and asked that the Clerk be asked again to attend the March 15, 2022 meeting and provide details on what steps/processes are taken with the Medical Marihuana division of his office. Mr. Smiertka noted it is not just the Clerk involved in those licensing, but building, code, LPD and OCA. The Members spoke briefly on the recommendation and proposing separate recommendations for the Clerk, Mayor and Council so Council can act on each one separately. Member Hoisington stated he would not be able to attend the meeting on 3/8/2022 and asked to call in. Mr. Smiertka stated the public can call in and listen but a member cannot. He can call in as a member of the public and listen but not be involved in the deliberation or decision unless in person. Member Hoisington stated he would not be at the March 15, 2022 meeting and Member McAlvey stated he too would not be at the March 15, 2022 meeting. Ms. Boak confirmed the following for March 8, 2022: Ms. Kehler will be present to provide an update on OPEB Ms. Kirkland to be present to speak to CPI, ARPA and revenue losses Ms. Sancez-Gazella to be present to speak on benefits in relation to elected official vs employees Ms. Boak confirmed that at this time the Mayor has declined the open invitation to the March 15, 2022 meeting, the Clerk has not responded, and there is only one Council Member who wishes to come and introduce himself because he is newly appointed. Ms. Boak was asked to reach out to the Clerk again and also ask him to report out on the Medical Marihuana process when he attends. Adjourn Adjourned at 12:55 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Approved as presented March 8, 2022

Agenda

Packet

AGENDA Elected Officers Compensation Commission AGENDA FOR MARCH 2, 2022 AT 12:00 PM Lansing City Hall, City Council Conference Room 124 W. Michigan Avenue, 10th Floor To provide input or ask questions on any item that is listed on the agenda, members of the public may contact the City Council at city.council@lansingmi.gov or (517) 483-4177 prior to the meeting. Liisa Speaks - Chairperson Derek Melot -Chairperson Thomas Hoisington Brian Huggler Jeff McAlvey Holli Seabury Steve Young 1. Call to Order 2. Roll Call 3. Minutes A. February 16, 2022 4. Public Comment on Agenda Items (Up to 3 Minutes) 5. Discussion/Action: B. ARPA Funds C. Consumer Price Index Information (CPI) D. 2019 Community Comparisons -Pending Updates E. Past Recommendations 6. Other 7. Adjourn 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. Page 1 of 16 MINUTES Elected Officers Compensation Commission Wednesday, February 16, 2022 @ 12:03 p.m. ROLL CALL Commissioner Chairperson Speaker Commissioner Vice Chairperson Melot Commissioner Member Huggler Commissioner Member McAlvey Commissioner Member Hoisington - absent Commissioner Member Seabaury Commissioner Member Young - excused OTHERS PRESENT Sherrie Boak, Council Staff Jim Smiertka, OCA CALL TO ORDER Ms. Boak called the meeting to order ROLL CALL Ms. Boak called roll and there were 5 members present, one excused and one unexcused. Public Comment No public present at this time. Discussion/Action Election of Officers MOTION BY MEMBER HUGGLER TO NOMINATE MEMBER SPEAKER AS CHAIRPERSON. SECOND BY MEMBER MCALVEY. MOTION CARRIED 5-0. MOTION BY MEMBER HUGGLER TO NOMINATE MEMBER MELOT AS VICE CHAIRPERSON. SECOND BY MEMBER SPEAKER. MOTION CARRIED 5-0. Chairperson Speaker lead the remaining of the meeting. 2022 Meeting Schedule The Commission determined the following dates: Wednesday, March 2, 2022 @ 12:00 p.m. Tuesday, March 8, 2022 @ 12:00 p.m. Tuesday, March 15, 2022 @ 11:00 a.m. Thursday March 24, 2022 @ 11:00 a.m. Past Material Request and Future Requests The Commission consensus was to request details on the recent ARPA funds the City received or will receive. They asked for the salary comparison spreadsheet be updated and include South Bend, Indiana. The Commission asked for all past materials to be obtain with the intent to review them at the Page 2 of 16 next meeting, March 2, 2022. Ms. Boak was asked to invite the HR and Finance Departments to the meeting on March 8, 2022. Ms. Boak was then asked to extend an invitation to all City elected officials to attend on March 15, 2022. The final letter will be written on March 24, 2022. Other Mr. Smiertka asked how the Commission wanted to proceed with the recent OMA on ADA compliance. The Commission determined that if a request for accommodations be made for the public they will accommodate. Commission Member Comments Member Melot noted that in the discussion this year the Commission should consider the responsibilities of the Clerk and Mayor to make sure their salary matches their lever of responsibilities. Excused Absences Member Young was excused because he notified the Commission in advance, Member Hoisington did not contact Commission in advance so he was marked absent. Adjourn Adjourned at 12:22 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Placed on File Page 3 of 16 RESOLUTION #2021-216 BYTHE COMMITTEE ONWAYS ANDMEANS RESOLVED BYTHE CITY COUNCIL OFTHE CITY OFLANSING WHEREAS, theAmerican Rescue Plan Actof2021 (ARPA) wassigned intolawonMarch 11,2021, establishing Coronavirus State andLocal Fiscal Recovery Funds (CSLFRF) by appropriating $45,570,000,000 under tomake payments tometropolitan cities; and WHEREAS, under theformula established under ARPA, theCityofLansing wasawarded 49,924,664tobepaid intwoseparate traunches of $24,962,332. The firstofwhich was received bytheCityofLansing on August 5,2021 andthesecond ofwhich willbe available 12months after thefirst payment; and WHEREAS, Sections 602(c)(1)and 603(c)1provide these funds maybeused asfollows: A. torespond tothepublic health emergency withrespect toCOVID-19oritsnegative economic impacts, including assistance tohouseholds, small businesses, and nonprofits, oraidtoimpacted industries such astourism, travel, andhospitality; and B. torespond toworkers performing essential workduring theCOVID-19public health emergency byproviding premium paytoeligible workers oftheState, territory, or Tribal government thatareperforming such essential work, orbyproviding grants to eligible employers thathave eligible workers whoperform essential work; and C. fortheprovision ofgovernment services totheextent ofthereduction inrevenue of such State, territory, orTribal government duetotheCOVID-19public health emergency relative torevenues collected inthemost recent fullfiscal yearoftheState, territory, orTribal government prior totheemergency; and D. tomake necessary investments inwater, sewer, orbroadband infrastructure. WHEREAS, theFiscal Year 2022 Budget adopted byCityCouncil onMay 16,2021 anticipated theuseofthefirsttraunch, thevastmajority ofwhich tobespent onrevenue lossbetween thegeneral fund and parking fund; NOW, THEREFORE, BEITRESOLVED, theLansing CityCouncil approves acceptance ofthe ARPA funds inthetotal amount of $49,924,664 awarded between thetwo traunches of $24,962,332; BEITFURTHER RESOLVED, theLansing CityCouncil approves theuseofthefirst traunch of $24,962,332forpublic health andeconomic impacts; provision ofgovernment services totheextent ofthereduction inrevenue totheCityduetoCOVID-19;premium pay; and necessary investments inwater, sewer, orbroadband infrastructure; BEITFURTHER RESOLVED, thatprior totheexpenditure orreimbursement ofARPA funds foranyuse, theAdministration shall determine whether ornotagiven useiseligible Page 4 of 16 pursuant tothelegislation orofficial guidance from U.S.Treasury, andshall document thebasis forthisdetermination along withtheestimated expenditure andprogrammatic data required tofulfill thereporting requirements established bythelegislation andU.S. Treasury. BEIT FINALLY RESOLVED, the Administration is authorized tocreate appropriate accounts andtomakethenecessary operating transfers for the expenditure and control of the balance of the funds. Page 5 of 16 Page 6 of 16 Page 7 of 16 Page 8 of 16 Page 9 of 16 Page 10 of 16 Page 11 of 16 Page 12 of 16 Page 13 of 16 2019 Salary and Fringe Benefit Survey **Wages are annual unless otherwise noted** City Population Type of Government City Clerk Council Member City Manager (if Mayor Benefits City Clerk Vehicle applicable) City Admin non- Ann Arbor, Michigan 121,477 Council/Manager $ 104,120.68 $16,588.86/ 35 meetings per year elected $ $223,600.00 $ 44,236.98 N/A N/A Approx. 24 City Council meetings. Council President: $17,267 Council Member: $14,409 Dearborn, Michigan Approximately 98,000 Council/Strong Mayor $79,992 They are also paid $100 per meeting up to 80 meetings. N/A $147,467 See attachment N/A Range $60,165 to a maximum of $84,310. The Clerk is currently at East Lansing, Michigan 48,579 Council/ Manager $77,392. $8,171.92/ annual- 32 meetings $143,309 $9,634 N/A N/A Flint, Michigan 70817.76 Reported $91,000.00 Reported in 96,448 Council/Strong Mayor in 2017 $20,800.00 Reported in 2017 N/A 2017 None No Same as full time city employees. Includes Health, 20% Required Contribution, Voluntary Enrollment Cafeteria Benefits (Disability, Not Applicable (We do Grand Rapids, Commission/ Life, Cancer, Flexible Spending), Retirement – Mandatory 6% employee contribution with matching employer contribution, Deferred have Mileage Michigan 198,829 Manager $104,052.00 $24,410/ 24 Meetings per year $ 250,000.00 $42,471.00 Compensation (Voluntary), Death Benefit $60,000.00 Reimbursement) President $26,640 Lansing, Michigan VP $25,140 Council: Option to purchase health and dental. 116,000 Council/ Strong Mayor $ 87,066.00 Members $24,240 N/A $ 128,400.00 Mayor and Clerk: Health, Dental, DC, Long Term Disability, Life Insurance N/A The Mayor is provided 2017 estimate was $12,760 Council President/annual $12,333 Council Council Members none (except OPERS) all others Health Insurance with same monthly premiums as all city employees, Life Insurance with a City vehicle for Lorain, Ohio 63,841 Council/ Strong Mayor $63,220 member/annual N/A $118,671 $25,000 (after 15 years service $12,500 after termination), OPERS work use Council President: $16,149 Council VP: $14,317 Madison, Wisconsin Alders make $13,271 The Council generally meets twice a month and then alders also are assigned to various committees with differing meeting Approximately 250,000 Council/ Strong Mayor $87,359-$117,935 schedules. N/A $141,342 The Mayor is eligible for the same benefits as other City employees. Alders do not receive benefits. N/A Mayor & Clerk: Longevity, Vacation, Health Insurance, Option for Heath Savings Account or Flex Spending Account, Retiree Health Care Funding Plan City 4% and Employee 1%, Disability & Life Insurance, Pension IRS Section 401a Plan 14% City, 3% Employee, Voluntary Deferred Comp 457 Plan City Council: Pension IRS Section 401a Plan 12% City contribution; after-tax voluntary employee contributions up to 12%, 45 month vesting for City contributions. Deferred Compensation 457 and Roth 457 Plans Employee voluntary pre-tax President $8,350 Members $6,577 (based on 32 meetings). contributions to annual legal maximums Rochester Hills, If there is more than 32 meetings, $60/ meeting .- Reported established by the IRS. AFLAC Supplemental Insurance Employee-pai d payroll deductions available for Hospital Intensive No, but can submit for Michigan 74,205 Council/ Strong Mayor $96,549.00 in 2017 N/A $ 116,276.00 Care, Cancer and Accident plans. Employee Assistance Pro gram .- Reported in 2017 mileage reimbursement. Commission/ $40 per meeting- 24 Royal Oak, Michigan 59,112 Manager $72,922-$86,427 $20 per meeting- 24 meetings a year $121,236-$145,909 meeting a year N/A N/A All elected officials: Health Insurance Dental 401k (employee 4%, City 10%) $92,923.00 $125,642 (as reported Retirement Health Savings Account (employee 2%, City 2%) Flexible Spending Account option Warren , Michigan 135,022 Council/ Strong Mayor Reported in 2017 $31,412 (as reported by Sterling Heights) N/A by Sterling Heights) Life Insurance -Reported in 2017 N/A Page 14 of 16 EOCC Past Recommendations 3/25/1995 3/12/1991 1/1/1992 4/8/1993 Attempt to reject failed 3/21/1997 Rejected 1991 1992 1993 1994 6/1/1995 1/1/1996 6/1/1997 1/1/1998 Mayor $71,590 $74,095 3.49% No Increase No Increase $81,000 $85,000 $87,975 $91,054 Clerk $46,300 $48,152 4.00% No Increase No Increase $58,000 $58,000 $58,000 $59,000 Council $12,877 $13,392 4.00% No Increase No Increase $14,000 $14,000 $15,000 $15,000 Vice President $12,877 $13,392 No Increase No Increase $14,750 $14,750 $15,750 $15,750 President $12,877 $13,392 No Increase No Increase $15,500 $15,500 $16,500 $16,500 from 1996 (Accepted March 1999) Accepted March 2001 1997 1998 1/1/1999 7/1/1999 7/1/2000 7/1/2001 7/1/2002 Mayor Rejected Rejected $85,000 $90,000 $95,000 5.56% 102,000 7.35% $107,000 4.90% Clerk Rejected Rejected $58,000 $62,950 $67,900 7.86% $68,500 0.88% $69,100 0.88% Council Rejected Rejected $14,000 $17,000 $19,000 11.76% $20,200 3.16% $20,200 3.06% Vice President Rejected Rejected $14,750 $17,750 $19,750 11.27% $20,950 3.04% $20,950 2.70% President Rejected Rejected $15,500 $18,500 $21,000 13.50% $21,600 2.86% $22,200 2.78% Last Increase Self-suported Vision Care added Council Healthcare Removed 1/01/2010 2002 Rejected 4/24/2005 4/30/2007 Accepted 4/30/2009 7/1/2002 7/1/2003 7/1/2004 7/1/2005 7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2009 1/1/2010 7/1/2010 healthcare healthcare Mayor $107,000 $108,500 $110,000 No Increase No Increase No Increase No Increase 102,037 10%prem 10%prem $102,037 Clerk $69,100 $70,100 $71,100 No Increase No Increase No Increase No Increase $72,831 10%prem 10%prem $72,831 Council $20,200 $20,500 $20,800 No Increase No Increase No Increase No Increase $20,200 10%prem discontinue $20,200 Vice President $20,950 $21,250 $21,550 No Increase No Increase No Increase No Increase $20,950 10%prem discontinue $20,950 President $22,200 $22,500 $22,800 No Increase No Increase No Increase No Increase $22,200 10%prem discontinue $22,200 Accepted 3/22/2011 2013 Accepted 3/5/2015 1/1/2010 1/1/2010 1/1/2011 1/1/2011 March28, 2013 Effective 7/1/2015 Healthcare Salaries Salaries Salaries New Amount Fringe Benefit Mayor Discontinued No Increase $ 101,650 Mayor 107,000 Mayor Increase $ 128,400 Benefits & Vehicle Clerk Discontinued No Increase $ 72,555 Clerk $72,555 Clerk Increase $ 87,066 Benefits Council Discontinued No Increase $ 20,200 Council $20,200 Council Increase $ 24,240 Vice President Discontinued No Increase $ 20,950 Vice President $20,950 Vice President Increase $ 25,140 President Discontinued No Increase $ 22,200 President $22,200 President Increase $ 26,640 C.A. 09-23 Proposed- effective Proposed-effective 2017 7/1/2017 7/1/2018 Salaries New Amount New Amount Fringe Benefit STATUS Mayor Increase $ 129,684 $ 130,980 No Chg from 2015 Rejected Clerk Increase $ 87,936 $ 88,815 No Chg from 2015 Rejected Council NO CHANGE $ 24,240 $ 24,240 Rejected Vice President NO CHANGE $ 25,140 $ 25,140 Rejected President NO CHANGE $ 26,640 $ 26,640 Rejected Res 2017-095 Page 15 of 16 2019 Proposed Proposed Proposed Effective Effective Effective Salaries 1/1/2019 1/1/2020 1/1/2021 Fringe Benefit STATUS RES. # Mayor Increase $ 134,058.25 $ 136,739.42 $ 139,610.42 No Chg from 2015 Clerk Increase $ 90,902.77 $ 92,720.83 $ 94,667.97 No Chg from 2015 Council Pres. Increase $ 27,813.95 $ 28,370.23 $ 28,966.00 No Chg from 2010 Council VP Increase $ 26,247.85 $ 26,772.81 $ 27,335.04 No Chg from 2010 Council Mbr Increase $ 25,308.19 $ 25,814.35 $ 26,356.45 No Chg from 2010 2021 Effective Salaries 1/1/2021 Fringe Benefit Mayor NO CHANGE $ 139,610.42 No Chg from 2015 Clerk NO CHANGE $ 94,667.97 No Chg from 2015 Council Pres. NO CHANGE $ 28,966.00 No Chg from 2010 Council VP NO CHANGE $ 27,335.04 No Chg from 2010 Council Mbr NO CHANGE $ 26,356.45 No Chg from 2010 Page 16 of 16