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HomeMy WebLinkAbout2011 EOCC MinutesMINUTES Elected Officers Compensation Commission Tenth Floor City Council Conference Room, City Hall Friday, February 11, 2011 - 1:00 p.m. CALL TO ORDER Meeting called to order at 1:03 p.m. Roll Call Patricia Curran, Chair Don LeDuc, Vice Chair Thomas Hay, Member Brian T. Huggler, Member Joan Nelson, Nelson, Member _ OTHER PRESENT r+ti Don Kulhanek, Law c2S2 Karen Hulett, Council Staff -. Darnell Oldham, Jr. Citizen c; John Pollard, Citizen Susan Vila, LSJ Excused Absence APPROVAL OF AGENDA Mr. Kulhanek explained the official approval process of the Elected Officers Compensation Commission. Due to the current two (2) vacancies on the Commission, only five (5) members are serving in 2011. Therefore, four Commissioners equal a quorum and four votes are required to pass business items. Law and the EOCC Chairperson noted that the Commission has 45 days in which to conduct its business with a maximum of 15 meetings allowed. BUSINESS Election of 2011 EOCC Officers Joan Nelson nominated Patricia Curran to the position of Chair, seconded by Tom Hay. Motioned carried, 5-0. 2011 EOCC Chair Patricia Curran. Brian Huggler nominate Don LeDuc to the position of Vice Chair, it was seconded by Pat Curran. Motioned carried, 5-0. 2011 EOCC Vice Chair Don LeDuc. 2. Determination of 2011 EOCC Meetinq Schedule 2/16/11 1 st Meeting -Invite Jerry Ambrose -Financial Report 3/2/11 2"d Meeting -Invite Mayor, & City Clerk 3/8/11 3d Meeting -Invite City Council 3/16/11 4th Meeting 3/23/11 5th Meeting VOTE 3. Reports, Presentations, Commission Questions and Discussion March 24, 2011-Due Date — Recommendation to be submitted to the City Clerk to be placed on the City Council Agenda for 3/28/11 Commission Vacancies - Don LeDuc questioned what it would take to appoint individuals to fill the vacancies on the Commission. Don Kulhanek stated that it is unlikely to be able to fill the vacancies in time to be part of the 2011 EOCC session because it takes 30 days minimum to complete the process, and the Commission has only the next 45 days. Joan Nelson and Patricia Curran thought it best to proceed with the necessary steps in the process to fill the vacancies. Overview Chart of Revised EOCC Past Recommendations — The Commission reviewed the EOCC past recommendations. Law noted that the 2009 EOCC changes made to benefits were the most extensive of any previous Commission's recommendations in recent years. Invitation Letters for Upcominq Meetinqs - The Commission requested to send a letter inviting participants to the upcoming scheduled meetings. The participants include Finance, Mayor and City Councilmembers. Chart of Municipalities Comparison - Need Salary, benefits, part time, full time, etc. information gathered from the following cities: Ann Arbor, Grand Rapids, Livonia, and Warren. 4. Commissioners Comments Handlinq of Press Inquiry - Patricia Curran suggested that all press inquiries be directed only to the EOCC Chair. Public Contact List Request - Patricia Curran asked for the City Council Public Contact List. PUBLIC COMMENT John Pollard spoke regarding City Council meetings being shorter in time length. With incomes down for the population of Lansing, now would be the time for Council to meet longer. Neighborhood meetings in his opinion are not considered the same relevance of an actual City Council meeting. Even though Councilmembers are part time, the meetings have also been condensed by combining Committee of the Whole on Monday night with City Council meetings. He asked the EOCC to heavily consider in their decision making the actual time City Councilmembers spend working. He suggested that perhaps the City Councilmembers compensation be on a per diem basis. Darnell Oldham, Sr. emphasized that elected city officials should be servants not rock stars. He supported John Pollard comments. ADJOURN This meeting adjourned at 1:45 pm. Respectfully Submitted, Karen Hulett Recording Secretary Approved by the Commission on 2-16-11 MINUTES Elected Officers Compensation Commission Wednesday, February 16, 2011 Tenth Floor Council Conference Room, City Hall 12 Noon CALL TO ORDER Meeting called to order at 12:02 p.m. ROLL CALL Patricia Curran, Chair Don LeDuc, Vice Chair Thomas Hay, Member Brian T. Huggler, Member Joan Nelson, Member OTHERS PRESENT Don Kulhanek, Law Terese Horn, Council Staff Karen Hulett, Council Staff John Pollard, Citizen Darnell Oldham, Citizen Angela Bennett, Budget COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes BRIAN HUGGLER MADE A MOTION TO APPROVE OF THE MINUTES OF THE ELECTED OFFICERS COMPENSATION COMMISSION MEETING ON FEBRUARY 11, 2010, AS REVISED. MOTION CARRIED Reports, Presentations, Commission Questions. and Discussion 1 Budget Presentation by Angie Bennett Ms. Bennett, Budget Manager, submitted an overview on the "Financial Update Given to City Council December 20, 2010" and a memo of February 14, 2011 from Jerry Ambrose to the W&M Committee, "Update to the FY 12 Budget Development". She reviewed some background leading up to the deficit, decrease of revenue sharing, property taxes, and income taxes. These have all decreased due to the poor economy. In the FY 2010 budget, revenue sharing was cut by $300,000. The loss in income tax revenue sharing and other areas, ended FY 2010 revenue shortfall of $4.5 million. However, expenses were also under, which helped, but still had to balance the budget by using funds out of the $10 million Reserve Fund, which left about $5.5 million. The Reserves Account was explained like a savings account. The City has two pots of reserve funds, money in the General Fund (Fund Balanced) and a separate Budget Stabilization Fund, which takes Council action. When the Reserve Fund is referred to, it considers both. Remaining in the Reserve Account in general funds is about a $.5 million and about $5 million in the Budget Stabilization Fund. She reported that the change in the multiplier for the auto industries affected the City's budget. There was $112.5 million allocated in the FY 2010 General Fund budget but revenues ended up short, $108 million. The adopted budget for FY 2011 is $109 million. This year's expenditure and revenues are on track; however, they are concerned about Property Tax and Income Tax is very volatile. They are trying to assess the effect of Income Tax. They have found that it is now stabilizing, but it is not to the amount the City use to receive. The continuing decline in property values and probable reductions in state revenue sharing along with the possibility of eliminating personal property tax are very much a concern. There is a deep concern also about healthcare and pension costs. When looking forward while in the process of developing the budget to begin July 2011, if costs continue as normal, they anticipate expenses being $118 million. They anticipate revenues of $103 million, leaving a projected gap of $15 million. However, there is a potential reduction in revenue taxes of $2 or 3 million. They figure the gap could grow to $20 million due to the potential decrease in personal tax. This is a substantial challenge. Ms. Bennett highlighted information obtained in the Financial Update Report given to Council on December 20, 2010. The projected General Fund gap trend is expected to last for a few years. The General Fund Budget Summaries compare the FY 2010 budget to the adopted FY 2011 budget and the General Fund Status Report is the FY 2011 budget as reported as of September 30, 2010. She reported that Administration would like to build back up the reserve level to 10%-15% of the general fund revenues. 2 Since Mayor Virg Bernero was elected Mayor, a balanced budget has been proposed and adopted. When the budget is finalized for the next fiscal year, it will be a balanced budget. Ms. Bennett explained that reserve funds are used for unplanned expenses, emergency needs. The ballot proposal for a formal increase in taxes if passed will increase revenues by about $8.5 million. The ballot proposal will go before the people in May, the Mayor will propose his budget in March, and it must be adopted in April. There will be a lot of education and debate on the proposed tax increase prior to the actual vote. Ms. Bennett explained the budget process put forth to departments outlining targets so departments know restraints. They review and ask to receive recommendations on the budget. Last year they consolidated efforts and had some success with cuts in healthcare for employees. In the current fiscal year, they incorporated many structural changes, park merger, and a number of things to align ourselves for the future. Commissioner Curran questioned if there has been any talk about raising city income taxes. Mr. Bennett indicated that there are restraints governed by the state statute. It would take state action to raise those taxes. We do not have a lot of flexibility in raising taxes. Ms. Bennett commented upon regionalization in order to save on costs. She reported on regionalization agreements established in the past, such as the zoo and currently the process of transferring the 911 Center to the County. There have been talks with the townships about consolidating police and fire. Commissioner Huggler questioned the revenue sharing factor. Ms. Bennett stated that when they figured the $15 million gap, they figured about a $2 million reduction in revenue sharing, about $12 million, but they now anticipate it may be more than that. Tomorrow night the Governor will announce the budget and Administration hopes to get a better idea of what will happen with state sharing revenues. There are two parts to revenue sharing, constitutional and statutory. At this time, they do not understand if there will be cuts to the whole thing or if there will be cuts to just half of it. The anticipated $2 million cut could now be up to $5 million. In consideration of the upcoming budget, Administration has asked department heads to consider their structure and make recommendations on cuts based on that. They will have to assess what is priority. They will need to look at what services should continue and what will need to change. There is consideration of cutting 15% - 20% of their budget. Commissioner LeDuc questioned if there are certain cuts recommended on compensation for employees or elected officials. Ms. Bennett indicated that she did not have that answer. 3 Ms. Bennett explained the process used to review the department's proposals. She explained that some scenarios brought forth on cuts would be acceptable but others would not. They also look at other approaches with Labor and other things to obtain cuts outside of the departments. The $601,000 for the Council budget includes salaries for Councilmembers, staff members, operation, and city events for the community. The figures and percentages used in the handout are numbers as of September 30, 2010. The forecast on expenditures and revenues going out and coming in at the same pace predicted to happen in 2015 now expected later. Ms. Bennett explained the property tax situation with respect to taxable value and state equalize value. When the taxable value is higher, taxes go up at inflationary rate but when taxable value drops at or below the SEV, the property tax will go down. She explained that about two -third of properties are at or below but are leveling off. The budget figures do not consider the taxes from the Accident Fund but the 2012 budget will reflect it. Old Business The Commission requested comparables be available at the next meeting. The Commission requested that comparables be sent out by e-mail prior to the meeting. New Business None. Commission Member Comments Mr. LeDuc questioned the value of the financial report presented by Ms. Bennett because it was not up to date. If things do not pick up, they will have no basis to do anything. PUBLIC COMMENT Mr. Pollard expressed his support of Mr. LeDuc comments. He voiced opposition to raising income tax. It was his opinion that taxes from the Accident Fund will not pay off due to the tax abatements granted them. State law allows the City their tax base up to 20 mills; however, the ballot proposal increases it beyond that. He suggested Council be paid on a per diem pay scale to be paid for what they do. G! Darnell Oldham commented about the attitude of the City Council. He suggested cutting pay for all Councilmembers. He supported Mr. LeDuc's comments about the Financial Report not being up to date and unhelpful and Mr. Pollards suggestion that the Council be paid on a per diem basis. The Commission requested Law to provide the Commission with a legal opinion on whether a per diem pay scale is allowable and if the Commission has the authority to do that. ADJOURN The meeting adjourned at 1:10 p.m. Respectfully Submitted, Terese Horn Recording Secretary Lansing City Council Approved by the Commission on: 3-2-11 5 MINUTES Elected Officers Compensation Commission Wednesday, March 2, 2011 Tenth Floor Council Conference Room, City Hall 12 Noon CALL TO ORDER Meeting called to order at 12:02 p.m. ROLL CALL Patricia Curran, Chair Don LeDuc, Vice Chair Thomas Hay, Member Brian T. Huggler, Member Joan Nelson, Member OTHERS PRESENT Don Kulhanek, Law Terese Horn, Council Staff Karen Hulett, Council Staff John Pollard, Citizen Darnell Oldham, Citizen Chris Swope, City Clerk APPROVAL OF AGENDA COMMISSIONER LEDUC MADE A MOTION TO ACCEPT THE AGENDA, SECOND BY COMMISSIONER NELSON. MOTION CARRIED, 5-0. COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes 1 COMMISSIONER LEDUC MADE A MOTION TO APPROVE OF THE MINUTES OF THE ELECTED OFFICERS COMPENSATION COMMISSION MEETING ON FEBRUARY 16, 2011, AS REVISED. MOTION CARRIED, 5-0. REPORTS, PRESENTATIONS, COMMISSION QUESTIONS, AND DISCUSSION Opinion on Per Diem Salary Mr. Kulhanek reported on his determination that the Commission could change compensation to the per diem. He highlighted his opinion. The EOCC acts under the authority of the Lansing City Charter and Lansing Code of Ordinances. He highlighted the definition of "salary." The EOCC may consider compensation other than salaries. As he understood the question to be if per diem could be used to compensate for services provided at meetings rather than for things associated with the meeting. He reported that he does not foresee a problem with changing the salary to a per diem basis. Municipal Comparatives Report Commissioner Curran questioned the reference to Councilmembers as an employee. Mr. Kulhanek referred to his opinion made in the 2009 session and clarified that Councilmembers have always been considered employees. COMMISSIONER LEDUC REQUESTED COPIES OF THE 2009 EOCC RECOMMENDATION. COMMISSIONER CURRAN SUGGESTED CONTACTING THE UNIONS AND TO PROVIDE THEM AN OPPORTUNITY TO SUBMIT IN WRITING A RECOMMENDATION. The Committee reviewed the comparatives from surrounding municipalities. It was noted that some governmental units were made of a different structure than Lansing and was governed with a week Mayor and strong Council. Update on Invites to Councilmembers Staff reported that the Council President and Councilmember Quinney have responded and plan on attending the next meeting. Discussion on Salaries Commissioner Huggles questioned how to budget if Councilmembers were paid on a per diem basis. Commissioner Curran commented about how quickly salary could increase if paid on a per diem basis for each meeting. Commissioner Huggler suggested dividing up the number of Council meetings to determine a per diem basis. However, it was noted that committees would also have to be considered. 2 Commissioner LeDuc indicated that he was considering setting a rate on a Council and Committee meetings basis of $200 for Council meetings and $100 for Committee meetings with a cap of $10,000 and $5,000. Mr. Kulhanek indicated that he could foresee a number of issues with this. He reported that Council meeting are still meeting 50 times a year but also every other week is a Committee of the Whole meeting. There was consideration to who and how member to committees were assigned and how often they meet. Commissioner Curran noted that Councilmembers attend City Boards as Lansing representative member. Mr. Kulhanek suggested that the Commission could consider a blend of base rate and a per diem for meetings or other services determined. However, it could get very complicated quickly. Commissioner Hay commented about committee day and times set by the Chair, which may conflict with a standing commitment of a member. Commissioner Nelson commented about Councilmembers attending neighborhood meetings and their involvement in the community through this venue. These meetings should be considered "work" not campaigning. Commissioner Hay voiced concern about paying on a per diem basis because it could result in the opposite effect and Councilmembers not attend meeting or stay in touch with constituents. Citv Clerk Chris Swope Interview Mr. Swope asked Commissioners to consider all factors; the economy, job requirement, and city revenue. He thanked the Commission for their diligent work. However, he did provide an opinion on the consideration of Councilmembers paid on a per diem basis. He explained his request to change the City Charter to reduce the number of required City Council meetings. He reported that he has asked the City Council to put this consideration on a ballot for a public vote. This would take five votes of Council or a petition of 4,000 signatures. The current practice is to hold a Committee of the Whole twice a month rather than holding a full Council meeting every week, and they have found that there are about the same number of action items within the year as when they held full Council meetings weekly. He asked the Commission, if a per diem basis is determined, to establish the per diem in a way not to discourage the Council from moving forward to a more efficient and effective Council meeting. In response to Commissioner Hay, Mr. Swope stated that he did not have a recommendation on his salary. Commissioner Curran questioned overtime use in the City Clerk's Office. Mr. Swope stated that there is overtime pay for his staff but not to him. Mr. Swope reported that his staff collected information outlining the frequency of meeting times for other municipalities and would be glad to provide it to the Commission. Continued Discussion on Salaries Commissioner Huggler noted that the Clerk is comparable to Ann Arbor and Livonia but others make more and with respect to the four comparisons, Council and Mayor are in the middle. Commissioner Nelson questioned reasoning for considering per diem basis. Commissioner LeDuc indicated it was something that he thought should be seriously considered but he is not strongly supportive of it. Lansing has a complex structure. Commissioner LeDuc recommended operating on the premise that things stay as they are except to update the language in the Elected Officials Fringe Benefits. He suggested it be a continuation package with exceptions. If acceptable, he suggested that a draft be prepared for consideration by the Commission at the next meeting. Commissioner Nelson commented that it was her opinion that the Councilmembers' salaries look reasonable. Commissioner Huggler commented that for the last 10 years salaries have remained the same other than the Clerk, which raised only about $4,500. Commissioner LeDuc voiced his support to have Randy Hannan back at the next meeting along with the Councilmembers. The next meeting is to be held on Tuesday, March 8th for 1.5 hours. Public Comment John Pollard maintained Councilmembers have cut their meetings in half. He suggested consideration of the population in the comparative municipalities and City's income. He supported per diem basis for Councilmembers. He commented about the cancelation of meetings. People are taking a hit and he believes it needs to be considered. He would like to see a tally of how many hours the Mayor worked for the City and how many hours worked to become Governor. He maintained the Mayor only attended 10% of City Council meetings. Mr. Oldham supported Mr. Pollard's comments about the Mayor. If the city is really in a crisis, every elected official should take a hit along with everyone else. He commented that elected officials had a great idea of what would be expected of them as an elected official when they took the job. He supported a per diem basis still be considered and to check with the County on how they do it. CI ADJOURN The meeting adjourned at 1:04 p.m. Respectfully Submitted, Terese Horn Recording Secretary Lansing City Council Approved by the Commission on: 3-8-11 MINUTES Elected Officers Compensation Commission Tuesday, March 8, 2011 Tenth Floor Council Conference Room, City Hall 12 Noon CALL TO ORDER Meeting called to order at 12:03 p.m. ROLL CALL Patricia Curran, Chair Don LeDuc, Vice Chair Thomas Hay, Member Brian T. Huggler, Member Joan Nelson, Member OTHERS PRESENT Don Kulhanek, Law Terese Horn, Council Staff Karen Hulett, Council Staff John Pollard, Citizen Darnell Oldham, Citizen Randy Hannan, Mayor's Office Abby Grimmah Channel 6 Rachel Thomas, Channel 10 APPROVAL OF AGENDA THE COMMISSION ACCEPTED THE AGENDA AS PRESENTED. COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes COMMISSIONER HAY MADE A MOTION TO APPROVE THE ELECTED OFFICERS COMPENSATION COMMISSION MINUTES FOR THE MEETING OF MARCH 2, 2011, AS SUBMITTED. MOTION SECOND BY DON LEDUC AND CARRIED, 5-0. REPORTS, PRESENTATIONS, COMMISSION QUESTIONS, AND DISCUSSION Mavor Representative Randv Hannan Mr. Hannan submitted in writing a recommendation from the Mayor for 2012 salaries and benefits for City of Lansing elected officials. He commented about the economic crisis and budget deficit. The challenge continues with significant declines in residential, commercial and industrial property tax revenues, reduction in state revenue sharing, and increase in cost for providing city services. The continued financial situation requires the city to make additional spending cuts, as well as asking Lansing residents to approve new revenues. He commented upon other aspects related to costs associated with personnel. The City does not have an option to raise city income tax without approval from the State; therefore, revenue options are limited. He reviewed past actions taken to reduce costs; reduced workforce through nutrition, elimination of comp time for department heads and Mayor's staff, restructuring of healthcare, and an increase in co -pays. The recommendation made by the Mayor in 2009 reducing salaries and other benefits was reviewed and appreciation expressed to the EOCC members for their actions taken. In light of the ongoing fiscal challenges, even though the Mayor's salary has not been increase since 2002, he recommended that salaries for elected officials are frozen at current levels for the next two years. The Mayor indicated that if employees must make more sacrifices, he would also. Commissioner Hay questioned the staff level in the Mayor's office. Mr. Hannan reported that they have five full time employees and approximately nine to eleven department heads. Council President Robinson's Written Report/Kathie Dunbar Interview Unforeseen circumstances transpired that prevented Council President Robinson and Council Vice President Dunbar from attending this meeting. The Commission reviewed a schedule highlighting general commitments of Council President Robinson in 2010. Staff explained that her chart is representation of Councilmembers commitments. Councilmember Derrick Quinnev Commissioner Curran explained unanticipated commitments also developed with Councilmembers Quinney and Wood requiring their attendance and involvement elsewhere, and, therefore, would not be able to attend today's meeting. She reviewed the volunteer give back information submitted by Councilmember Quinney and donation to a non-profit organization, and her understanding that all Councilmembers volunteered to give back 10% of their salary to the City. Councilmember Quinney recommended that EOCC freeze all elected officials salaries and benefits for the next two years. Update on Invites to Unions Staff reported that no responses were received to this date. Communication from Clerk Swope The Commission reviewed the information on the number of meetings held compared to resolutions adopted obtained in the letter from City Clerk Chris Swope. RECEIVED AND PLACED ON FILE. Draft of Fringe Benefits for 2011 from Don Kulhanek Mr. Kulhanek submitted, as requested, a revised copy of the Elected Officials Fringe Benefit proposed for 2012, including markups. The major change in the section for the Mayor and City Clerk was inserting "Mayor and City Clerk" for "eligible retirees" to make it read clearer. There were move significant changes in the section for City Councilmembers: • Wording "now serving" as it related to "City Councilmembers" was removed. • Health Insurance — Old language deleted on full health coverage. Councilmember are now in -line with the same terms as part-time employees, who must purchase these benefits. Language on when this benefit terminated deleted. • Vision Plan — Clean up language. • Opt Out — Was reorganized in a different location of the document. • Dental Insurance — Old language deleted on full health coverage. Councilmember are now in -line with the same terms as part-time employees, who must purchase these benefits. Language on when this benefit terminated deleted. • Retiree Dental Insurance — Language deleted and added to clarify. Those Councilmembers taking office after January 1, 2010 shall not be eligible for this benefit. • AFLAC — Remained the same with the exception of language in the last sentence which was changed to "Councilmembers first taking office after January 1, 2010 shall not be eligible for this benefit." • Life Insurance — Majority of the old language deleted to clarify elected official are not eligible for City provided group life and Accidental Death and Dismemberment Insurance. • Vacation — No Change. • Parking/Transportation — Removal of the last sentence that was unnecessary. • Deferred Compensation - A deletion to read more clearly. • Defined Contribution Retirement System — Language added to clarify those who formerly participated continue but those elected after Jan 1, 2010 are not eligible. Language added to clarify. • Retirement Health Care — Language changed to clarify that those who already are eligible remain eligible but new elected officials are not eligible. • Opt Out — This was moved to appropriately refer to the Retirement Health Care only for those who were eligible will continue to be able to opt out. Mr. Kulhanek reported that he did not have an opportunity to have Human Resources review this document. They may have some input on how this reads. The cover letter is also included with the fringe benefit. Direction was requested on how to formulate the letter. Mr. Kulhanek explained that within the last session, there was a problem with the letter as it relates to the fringe benefits. The documents worked off from the payroll system and that made the dollars off by a margin. Adjustments were made to the numbers to correct the them to reflect the intent of the Commission. Salaries were reduced 5% as intended. The correct numbers should be plugged into the letter for this year. Correction should be as follows: Mayor $101,650 City Clerk — $72, 555 Council President - $22,200 Council Vice President - $20,950 Councilmember - $20,200 Commissioner LeDuc suggested that the "elected officials" in part II of the Fringe Benefits should be referred to as "Councilmembers" and not as elected officials. Part I should also reflect "Mayor and City Clerk' and not "elected officials." The Dollar figures in the cover letter to reflect the revised Fringe benefits figures. Commissioner Curran reviewed Councilmember Quinney's report that the City Council volunteered to give back of 10% to the City and some also gave to United way or another non- profit organization. Commissioner Huggler questioned if the consensus of the Commission to leave everything alone and only consider salary. Commissioner Curran questioned if Councilmembers could be required to take furlough days. Commissioner Huggler questioned if the per diem is off the chart. Commissioner Curran noted the number of meetings submitted by the Council President that could lead to an increase in salary. Commissioner Hay voiced his opposition to a salary on per diem basis. He commented about Mr. Swope's comment on the number of meetings attended compared to the number of resolutions adopted along with comments made last session by Councilmember Allen considering the number of community meetings attended. Commissioner Nelson indicated she did not support the per diem basis and her consideration of the salaries being in the middle of the row along with salaries, other than City Clerk, remaining the same for ten years. She recommended freezing the current salary levels. Commissioner Huggler voiced his support for a freeze or a small decrease in salary. Commissioner Hay made note about healthcare being removed at the last session. Commissioners Hay and LeDeuc supported a salary freeze. COMMISSIONER NELSON MADE A MOTION TO FREEZE THE SALARY FOR THE MAYOR OF $101,650. MOTION SECOND BY COMMISSIONER LEDUC. ROLL CALL: CURRAN, LEDUC, HAY, HUGGLER, NELSON; 5 YEAS, 0 NAYS. MOTION CARRIED, 5-0. 0 COMMISSIONER LEDUC MADE A MOTION TO FREEZE THE CLERK'S SALARY OF $72,555; MOTION SECOND BY COMMISSIONER HUGGLER. ROLL CALL: CURRAN, LEDUC, HAY HUGGLER, NELSON; 5 YEAS, 0 NAYS. MOTION CARRIED, 5-0. COMMISSIONER HAY MADE A MOTION TO FREEZE THE COUNCIL PRESIDENT SALARY OF $22,200. MOTION SECOND BY COMMISSIONER NELSON. ROLL CALL: CURRAN, LEDUC, HAY, HUGGLER, NELSON; 5 YEAS, 0 NAYS. MOTION CARRIED, 5-0. COMMISSIONER CURRAN MADE A MOTION TO FREEZE THE COUNCIL VICE PRESIDENT SALARY OF $20,950; MOTION SECOND BY COMMISSIONER HUGGLER. ROLL CALL: CURRAN, LEDUC, HAY, HUGGLER, NELSON; 5 YEAS, 0 NAYS. MOTION CARRIED, 5-0. COMMISSIONER HUGGLER MADE A MOTION TO FREEZE COUNCILMEMBERS SALARIES OF $20,200. MOTION SECOND BY COMMISSIONER LEDUC. ROLL CALL: CURRAN, LEDUC, HAY, HUGGLER, NELSON; 5 YEAS, 0 NAYS. MOTION CARRIED, 5-0. The Commission requested Mr. Kulhanek draft the letter along with the fringe benefits package. A quorum is not possible for the meeting of March 16, 2011, and Commissioner Hay is not available for the March 23, 2011 meeting but a quorum is possible. There was discussion on whether or not to vote on the Fringe Benefits. Mr. Kulhanek indicated he understood the situation and did not have the problem with voting on it with the understanding of the possibility of something major needing to be changed and requiring reconsideration at the next meeting. COMMISSIONER HAY MADE A MOTION TO ACCEPT THE DRAFT PROPOSAL ON ELECTED OFFICIALS FRINGE BENEFITS' CONTINUATION AS RECOMMENDED IN 2009 WITH THE REVISION TO THE LANGUAGE AS PROPOSED AND REVISION RECOMMENDED IN PART I OF "MAYOR AND CITY CLERK" IN PLACE OF "ELECTED OFFICIAL" AND PART II OF "COUNCILMEMBERS" REPLACING "ELECTED OFFICIALS" SUBJECT TO CHANGES THAT NECESSITATE A NEED FOR REVISION. ROLL CALL: CURRAN, LEDUC, HAY, HUGGLER, NELSON; 5 YEAS, 0 NAYS. MOTION CARRIED, 5-0. MEETING OF MARCH 16, 2011 CANCELLED. NEXT MEETING WILL BE ON MARCH 23, 2011. Public Comment Mr. Pollard submitted a copy of the resolution adopted by Ingham County Board of Commissioners outlining salaries and per diem basis for attending meetings. They get paid a per diem basis for attending standing committees and Board meetings. There is a way to control per diem. It is his opinion that the Mayor is overpaid. He voiced concern about the Council Meeting and COW meeting schedule. He commented about the population decrease in the City of Lansing. City has less money in the budget and voiced concern about no recommendation received on the deficit at this time. Lansing residents are to poor to have elected officials paid this much. Darnell Oldham opposed freezing salaries but instead should cut wages. ADJOURN The meeting adjourned at 1:00 p.m. Respectfully Submitted, Terese Horn Recording Secretary Lansing City Council Approved by the Commission on: 3/23/11 1'30 MINUTES Elected Officers Compensation Commission Tenth Floor, City Council Chambers, City Hall Wednesday, March 23, 2011 — 12:00 p.m. CALL TO ORDER t Meeting called to order at 12:00 p.m. r: ROLL CALL M` r: Patricia Curran, Chair i Don LeDuc, Vice Chair Brian T. Huggler, Member Joan Nelson, Member Excused Absence: Thomas Hay, Member PATRICIA CURRAN MADE A MOTION TO APPROVE THOMAS HAY'S ABSENCE AS EXCUSED. JOAN NELSON SECONDED, CARRIED 4-0. OTHERS PRESENT Don Kulhanek, Law Karen Hulett, Council Staff Andy Balaskovitz APPROVAL OF AGENDA THE COMMISSION ACCEPTED THE AGENDA AS PRESENTED. COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes COMMISSIONER LEDUC MADE A MOTION TO APPROVE THE ELECTED OFFICERS COMPENSATION COMMISSION MINUTES FOR THE MEETING OF MARCH 08, 2011, AS SUBMITTED. MOTION SECOND BY BRIAN HUGGLER AND CARRIED, 4-0. C;7 w REPORTS, PRESENTATIONS, COMMISSION QUESTIONS. AND DISCUSSION Document Review and Discussion Initiated by Don Kulhanek, Law Don Kulhanek opened the discussion by noting that the information regarding the Mayor's vehicle was removed from the most previous placement within the 2009 EOCC Recommendation Letter and placed within the 2011 City of Lansing Elected Officials Summary of Fringe Benefits. Mr. Kulhanek also noted that the salaries listed in the 2011 Recommendation Letter are slightly different due to a miscalculation by the payroll system which was used previously in 2009. That is, the salaries in the 2011 Recommendation Letter are precise and correct, yet slightly different than the salaries listed in the 2009 document. Commissioner Joan Nelson asked if the Mayor's vehicle was mentioned in a letter from the Mayor, removing it from the Recommendation Letter. Don Kulhanek responded there was no letter. There was an inadvertent oversight at the last Elected Officers Compensation Commission meeting when the motions were made on Salaries and Fringe Benefit Summary. The motions and the vote did not include the car. Since, the motions did not include the vehicle; it was removed from the Recommendation Letter and place within the 2011 City of Lansing Elected Officials Summary of Fringe Benefits to preserve the original intent of the commission. Mr. Kulhanek said that the City of Lansing Human Resource Department, Lisa Thelen has also reviewed the 2011 City of Lansing Elected Officials Summary of Fringe Benefits document. She clarified that the Health Care benefit for Dental Care for Councilmembers was the UAW dental plan currently offered for part time employees. Ms. Thelen also requested to change the heading to Retiree Healthcare Opt Out. Don LeDuc offered that the Elected Officers Compensation Commission is maintaining the previously decided Fringe Benefits for Elected Officers as was decided prior to 2011. His suggestion is that the Fringe Benefit Summary document be further reduced in the future to reflect the conciseness of the 2011 Recommendation Letter. Don Kulhanek added that the Fringe Benefit Summary was created in the 1990's and is a document that has evolved over time. Don Kulhanek noted the named change for the current bank to Wells Fargo. The last change Mr. Kulhanek stated was the previous wording of "Elected Officials" under the Mayor and City Clerk Only Section was changed to Councilmembers under the City Councilmembers Section. Approval of EOCC 2011 Recommendation Letter to the Citv Council COMMISSIONER JOAN NELSON MADE A MOTION TO CORRECT AND RESTATE THE 2011 RECOMMENDATION LETTER TO THE CITY COUNCIL. MOTION SECOND BY COMMISSIONER DON LEDUC . ROLL CALL VOTE: PATRICIA CURRAN, CHAIR -YES DON LEDUC, VICE CHAIR -YES, THOMAS HAY, MEMBER -EXCUSED ABSENCE, BRIAN T. HUGGLER, MEMBER -YES, JOAN NELSON, MEMBER -YES; 4 YEAS, 0 NAYS. MOTION CARRIED, 4-0. 2 Approval of EOCC 2011 Citv of Lansina Elected Officials Summary of Frinae Benefits COMMISSIONER LEDUC MADE A MOTION TO CORRECT AND RESTATE THE 2011 CITY OF LANSING ELECTED OFFCIALS SUMMARY OF FRINGE BENEFITS. MOTION SECOND BY COMMISSIONER BRIAN HUGGLER. ROLL CALL VOTE: PATRICIA CURRAN, CHAIR - YES, DON LEDUC, VICE CHAIR -YES, THOMAS HAY, MEMBER -EXCUSED ABSENCE, BRIAN T. HUGGLER, MEMBER -YES, JOAN NELSON, MEMBER -YES; 4 YEAS, 0 NAYS. MOTION CARRIED, 4-0. Old Business None. New Business Don Kulhanek reviewed the final minutes approval process previously used by the Commission for the last 2011 EOCC meeting. The recording secretary would complete the minutes and email them to all Commissioners. After a two week period, if no one responds indicating corrections needed, the minutes would be deemed approved. If corrections are required, the secretary would make the changes and email them back to all Commissioners. Another two week period starts at that point to allow Commissioners time to respond indicating any further corrections. The process would continue as stated above until no changes are requested. At that time, the minutes would be deemed officially approved and submitted to the City Clerk. COMMISSIONER BRIAN HUGGLER MADE A MOTION TO USE THE ABOVE STATED FINAL MINUTES PROCESS. MOTION SECOND BY COMMISSIONER JOAN NELSON. ROLL CALL VOTE: PATRICIA CURRAN, CHAIR -YES, DON LEDUC, VICE CHAIR -YES, THOMAS HAY, MEMBER -EXCUSED ABSENCE, BRIAN T. HUGGLER, MEMBER -YES, JOAN NELSON, MEMBER -YES; 4 YEAS, 0 NAYS. MOTION CARRIED, 4-0. Commission Member Comments None. Public Comment None. ADJOURN The meeting adjourned at 12:35 p.m. Respectfully Submitted, Karen Hulett Recording Secretary Lansing City Council Approved by the Commission on: 4/19/11