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HomeMy WebLinkAbout2013 EOCC Minutes2013 APR -9 f l i r : 04 MINUTES Elected Officers Compensation Commission Thursday, February 28, 2013 Tenth Floor Council Conference Room, City Hall 12:30 p.m. CALL TO ORDER Meeting called to order at 12:32 p.m. ROLL CALL Patricia Curran, Chair Cassie Alley, Vice Chair Brian T. Huggler, Member Don LeDuc, Member Lisa Speaker, Member OTHERS PRESENT Diana Bitely, Council Staff Don Kulhanek, Law APIaROVAL OF AGENDA COUIMISSIONER SPEAKER MADE A MOTION TO CORRECT CASSIE ALLEY'S NAWIE ON THE AGENDA. COMMISSIONER LEDUC SECONDED THE MOTION. MOTION CARRIED, 5-0. COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes None submitted. Election of officers for 2013 COMMISSIONER HUGGLER MADE A MOTION TO NOMICATE COMMISSIONER CURRAN AS CHAIRPERSON. COMMISSIONER SPEAKER SECONDED THE MOTION. MOTION CARRIED, 5-0. COMMISSIONER HUGGLER MADE A MOTION TO NOMINATE COMMISSIONER ALLEY AS VICE CHAIR. COMMISSIONER SPEAKER SECONDED THE MOTION. MOTION CARRIED, 5-0. Determininq EOCC Meetinq Schedule The Committee reached a consensus on the EOCC meeting schedule: Wednesday, March 6, 2013 @ 3:00 p.m., Finance and Health Team. Tuesday, March 19, 2013 @ 3:00 p.m., Mayor/Clerk Thursday, March 21, 2013 @ 12:00 p.m. — Council/municipal data Tuesday, March 26, 2013 @ 9:00 a.m. —work session Thursday, March 28, 2013 @ 9:00 a.m.- work session Tuesday, April 2, 2013 @ 9:00 a.m. - tentative Reports, Presentations, Commission Questions and Discussion None. Old Business None. New Business Staff is to compile the following information: Address list of all Commission members Conduct municipal survey of Ann Arbor, Grand Rapids, Livonia and Warren of salaries, fringe benefits, and full-time or part-time commitment, number of support staff, differences in pay scale for President and Vice President of Council Commission Member Comments Commissioner LeDuc requested that staff invite the Mayor's Financial Health Team in to discuss the upcoming budget year. ADJOURN The meeting adjourned at 1:04 p.m. _ Respectfully Submitted, Diana Bitely, Recording Secretary Lansing City Council Approved by the Commission on: E�EIVED MINUTES Elected Officers Compensation Commission Tuesday, March 19, 2013 Tenth Floor Council Conference Room, City Hall 3:00 p.m. CALL TO ORDER Meeting called to order at 3:00 p.m. ROLL CALL Commissioner Patricia Curran, Chair Commissioner Cassie Alley, Vice Chair Commissioner Brian T. Huggler Commissioner Don LeDuc Commissioner Liisa Speaker OTHERS PRESENT Lindsay Green, Council Staff Don Kulhanek, Law Angie Bennett, Finance Director APPROVAL OF AGENDA COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes Municipal Comparatives Report Ms. Bennett provided a brief overview of the Financial Health Team Report. She stated that the copy provided for the Committee members is an overview of the City's finances and recommendations from the Financial Health Team. Ms. Bennett stated that the City is facing several budget challenges and that most of the City's revenues are tied to declining property taxes, income taxes and State shared revenues which over the years have continue drop.. Much like other communities are revenues are decreasing but our expenses are rising. Ms. Bennett stated that the Financial Health Team Report provided is an extensive look at the pressures we are facing which include an aging infrastructure, loss of pollution and currently $9, 000,000 dollar deficit for the fiscal year 2013/2014. The good news is that property values have bottomed out and we some stabilization, but it will be another year or two before we start to see an increase in property taxes. Ms. Bennett explained that during economic challenges times, the City of Lansing has stop making investments in the infrastructure or capital improvements. For example, the roads, maintaining and resurfacing has been cut, and we should be putting more money towards pre - funding retirement healthcare. We have some tough choices to make as a City, how we are able to fund these long-term choices and how to modify our retirement plans to be able to address some of our long-term needs. Commissioner Curran asked Ms. Bennett if anyone had been able to look at what the effect of the Obama Care could have on City employees. Ms. Bennett stated that it is still too early to know that, but the administration is asking the same questions. Commissioner Curran asked Ms. Bennett whether Mr. Hannan is asking for concessions from the unions. Ms. Bennett stated that there are such recommendations in the Financial Health Team Report. The administration settled a contract with the Teamsters 214 group approximately 6 months ago and there were no wages increase to base, a cash bonus, and a change in the pension plan. The change to the pension is for new hires and it is hybrid plan with defined contribution with a reduced multiplier. It will have go'from 8.4% to 1.25% and that the amount the employee would contribute towards that has been increased. Both the employee and employer would contribute 3%. Commissioner Curran asked what the salary reductions that are being asked for from employees are. Ms. Bennett stated that they are evaluating the use of furlough days and whether or not they will continue to be needed. The Financial Health Team recommended that furlough days become permanent but we are to waiting for the Mayor's review. Commissioner Curran requested that Ms. Bennett speak to Mr. Hannan regarding Department Heads and his staff compensation. Ms. Bennett stated that in the packet of compiled recommendations, there are references to evaluating the parking system and possibility of leasing operations, but she does not believe there are any suggestions to get rid of it completely. The topic of parking systems is discussed on pages 53 and 54 of the Financial Health Team Report. Commissioner Curran asked everyone to review the Municipal Reparative Report. Ira They review the documents. Commissioner LeDuc stated that a bigger sample was used last time, but that the conclusions was the Mayor and Council were correct and that the Clerk was receiving benefits that were much too low. Members of Commission continued to review the comparison information for Mayor and Clerk and found in the review that the Clerk's wages are still probably low. Commissioner Huggler stated that during this economic climate, if the Clerk is not requesting a pay raise, it is suggested to not provide one. Commissioner Curran stated that according to the chart provided, it looks like we are in line with the Council. Commissioner Curran requested Former Mayor Dave Hollister attend the next meeting, which is scheduled to be held on Thursday, March 21, 2013 at 12:00 p.m. She.would like to have information regarding Dearborn, Sterling Heights, Livonia, and Warren included in the comparison chart. It should include the mayors and their fringe benefits as well. Reports, Presentations, Commission Questions and Discussion None. Old Business None. New Business Commission Member Comments ADJOURN The meeting adjourned at 4:04 p.m. Respectfully Submitted, Lindsay Green, Recording Secretary Lansing City Council Approved by the Commission on: RECEIVED MINUTES Elected Officers Compensation Commission Thursday, March 21, 2013 Tenth Floor Council Conference Room, City Hall 12:00 p.m. CALL TO ORDER Meeting called to order at 12:00 p.m. ROLL CALL Commissioner Patricia Curran, Chair Commissioner Cassie Alley, Vice Chair Commissioner Brian T. Huggler Commissioner Don LeDuc Commissioner Liisa Speaker OTHERS PRESENT Lindsay Green, Council Staff Don Kulhanek, Law Councilmember Carol Wood COMMUNICATIONS None, BUSINESS SESSION Municipal Comparatives Report Lindsay Green explained to the Commission she was waiting for material from the other municipalities for the comparative report. Reports, Presentations, Commission Questions and Discussion Commissioner Curran welcomed Councilmember Wood to the meeting and asked her to begin her presentation. 1 Councilmember Wood stated that she was not here in her role as President of Council, but as Councilmember. She wanted to provide the Commission with some information she felt was important as they are making their decision. Councilmember Wood passed out a packet of material and explained to the Commissioners what the material consisted of. First was the resolution passed by eight member of Council when the item of reducing the number of meetings was put on the ballot. Within the resolution it indicated the on the Monday evening Council did not meet as a Council meeting they would meet as a Committee of the Whole. This was passed by the entire Council. The next document was the Council Committee and Board & Commissions Assignments. As explained to the Commission not only do Council members attend Council meetings, Committee of the Whole meetings, but they are also assigned Committee meeting. Council is also required sometimes by State Salute and by ordinance to sit on a variety of Boards & Commissions. These Boards sometimes also require subcommittee meeting. As an example Councilmember Wood is on Tri-County and Chair of that Board this year. We are required by the State to be on the Transportation Planning Commission Board in order to receive our Federal and State road dollars. This Board holds an Executive Committee meeting once a month for hour and half. She sits on the Transportation Subcommittee and this meets once a month for approximately an hour and half. There is the full Commission meeting once a month and that is a two hour meeting. This is just one example of a Board that a Council member is responsible for including their Council position. The next document was the schedule for the Budget Hearing for the month of April and May. Councilmember Wood explained to the Commissioners that during this time of the year we hold Council meeting every week. We also hold a Committee of the Whole meeting before the Council meeting and again after the Council meeting. What that means is every Monday night for two months you are attending a Budget Hearing and Council meeting from 5:30 pm to approximately 10:00 pm. The last document given to the Commissioners was Councilmember Wood's one month schedule of meeting involving'Council, outside Boards & Commissions, and community events. Councilmember Wood explained what the number of support staff working for Council was when she took office in 2000 and how that number has decreased to two and the internal auditor. Much of the research is now the responsibility of individual Council members on an issue. She also explained during these difficult budget years as employee have been asked to take furlough days that Council members have volunteer to return a portion of their pay each year to equal the same number of furlough day employees were forced to take. Commissioner Speaker questioned whether the time line presented included phone calls from constituents. Councilmember Wood said that she did not include the amount of time spent returning calls or emails. Depending on any given day and what the issue is that Council or the City is dealing with will determine how much time it may take to follow-up on an issue. 2 Commissioner Speaker asked about reading material and preparing for meeting. Councilmember Wood explained again that is the also the responsibility of the Council member to be informed about issues. Sometimes it requires attending meeting you are not assigned to but you attend in order to have a better understanding of the issue. Commissioner Alley asked about healthcare especially when looking at the unions. Councilmember Wood explained that a few years back the EOCC decided to take healthcare away from Council members and we no longer have that benefit. With regard to employee and healthcare over the year employees have agreed to enter into memorandums of understanding with the Administration and have been paying more for healthcare. Commissioner LeDue questioned some of the Financial Health Team finding and asked Councilmember Wood for her opinion. Councilmember Wood stated she was unsure as to whether the deficit was $9,000,000 or not due to how the Administration looks at the budget. For last four or five years employees have had to take furlough days but this $9,000,000 did not factor that into the budget. There are always choices as to whether to pay for one program or another and during these difficult times each must be examined to determine what service it is giving to the taxpayers. Commissioner LeDue asked Councilmember Wood thoughts on moving the pension system over to MERS. Councilmember Wood explained that serving on the both retirement system boards this was discuss at their meetings briefly this week. It is difficult to compare systems when you are not comparing apples to apples. Many of our plans have different multipliers for different bargaining groups and it far more complex than just turn our system over to someone else. Commissioner Speaker asked if as President is there more work, such as events that you are required to attend. Councilmember Wood stated yes. As President you are often asked to make presentation or attend event, along with your duties with the overseeing staff. Commissioner Huggler stated you indicated you are here representing yourself what is it you would like the Commission to do. Councilmember Wood explained based on the challenges we as a City are facing it is irresponsible to expect or ask for more money, but I hope the Commission will review the material I presented and see that this is more than a Monday night every other week. I would hope you would leave our pay the same. Commissioner Huggler asked whether you have talked to other Councilmembers about this. Councilmember Wood indicated that she had discussed it with some and they were of the same feeling. Commissioner Curran thanked Councilmember Wood for her presentation and said she thought it was very useful. Commissioner Curran asked Ms. Green whether we heard from other Council members who wished to address the Commission today. Ms. Green stated no. 3 Old Business None. New Business Commission Member Comments ADJOURN The meeting adjourned at 1:04 p.m. Respectfully Submitted, Lindsay Green, Recording Secretary Lansing City Council Approved by the Commission on: E r= -' E I �,�E� MINUTES Elected Officers Compensation Commission Tuesday, March 26, 2013 Tenth Floor Council Conference Room, City Hall 9:00 a.m. CALL TO ORDER Meeting called to order at 9:00 a.m. ROLL CALL Commissioner Patricia Curran, Chair Commissioner Cassie Alley, Vice Chair Commissioner Brian T. Huggler Commissioner Don LeDuc Commissioner Liisa Speaker OTHERS PRESENT Lindsay Green, Council Staff Don Kulhanek, Law COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes COMMISSIONER HUGGLER MADE A MOTION TO APPROVE THE MINUTES OF MOTION CARRIED, 5-0. Municipal Comparatives Report Reports, Presentations, Commission Questions and Discussion None. Old Business Commission LeDuc stated that informally the Mayor had indicated that he would like his salary restored to the amount before the Commission reduce it. The restoration would be, at his request, to $107,000. The Commission reduced his salary at his request from $107,000 to $102,000, so he's requesting for it to be restored. Mr. Kulhanek stated the Mayor's current salary is $101,650.00. Commissioner LeDuc stated it is not relevant to my report. The Mayor said he would have someone deliver a summary of the budget request. The Mayor said he was confident that he could justify restoring his salary politically and economically and asked for it to be presented to the group. The Mayor requested the cut in 2009. Commissioner LeDuc thinks in 2007 he requested reduction and EOCC voted no to keep him at the same level then in 2009 the Mayor made the request again and it was reduced. This restore take the Mayor to the salary level of pay as in 2002. The Mayor was aware that we had some comparable data and knew it was limited and Commission LeDuc told the Mayor we were hopeful of getting at least a brief summary of the budget. Commissioner LeDuc explained to the Mayor the EOCC would likely not be acting on anything today. That concluded the report. Commission LeDuc stated the Mayor felt this would be a justifiable restoration. The Mayor felt he had gone a long time without a raise and had taken the reduction voluntarily. Commission LeDuc doesn't think it's unjustified it's just taking it back to where it was. Commission Alley stated that this takes it back to the level of 11 years ago. Commissioner Speaker question how much does the city attorney make? Mr. Kulhanek stated $140,000 salary but believes she is giving back 5% of that. Commission Speaker questioned does the Mayor and Clerk do furlough days as well? Mr. Kulhanek was not sure. The Mayor did say all the Department Heads' salaries would remain the same and he doesn't anticipate furlough days for anyone. The Mayor also does not anticipate any layoffs and no furlough days for employees going forward. This will be possible due to adding approximately $46.00 to a utility bill divided over 12 month period for street lights and hydrants. Mr. Kulhanek passed out a handed out and indicated that this is a work in progress. After the last EOCC meeting we decided we need to revisit this and to review the law. In reviewing healthcare and the City has elected to go with the hard cap plan. The handout explains the information concerning the "hard cap" healthcare. Teamsters 214 is one bargaining group that has settle their contract with this provision and is subject to the hard cap. The EOCC should change the healthcare so for elected officials it coincides with what employees are getting. The suggestion is to change their 2 healthcare to just be afforded the opportunity to choose one of those three plans that are available to all employees now and pay the difference. The base plan is below the hard cap and therefore at no cost. That's the introduction to the issue. We think this is a change that needs to be made. Commission Curran questions whether this should be included. This would put everyone on equal ground. This doesn't affect the. Mayor as much as it does the City Clerk. The Mayor's wife is a school teacher so she receives those benefits. No one from Council or the Mayor's office has mentioned a change in healthcare. This looks like a technical thing and allows the City employees to choose from different plans and would open this up to the Clerk, but leaves Council alone. Commissioner Alley questioned should be looking at any kind of increase for the Clerk? Commissioner Curran stated we raised the Clerk's salary last time because it was low and it is now $72,000. Mr. Kulhanek handout included information on Public Act 152. Commissioner Curran asked whether any changes to healthcare will happen when if and when the healthcare plan (Obamacare) is implemented. Mr. Kulhanek is unaware of any at this time. We don't know a great deal about Obamacare and how it will be implemented. We are sure that whatever happens there will be some type of Obamacare implemented. Whatever the Commission's vote on now Obamacare is coming regardless. We are not recommending the assertion of any language in regard to Obamacare it's just something we'll have to deal with in the future. I will propose specific language for you from Public Act 152. These will be the plans that will be inserted into the fringe benefit. The language would be a little bit different from what is here in the handout. We would insert the two recommendations into the fringe benefits summary for the Mayor and City Clerk and then for Councilmembers they would have the same option for three coverage's Councilmembers would have to pay 100 percent of three different plans. Commissioner Speaker questioned how many Councilmembers are purchasing the City's plan? Mr. Kulhanek stated he would check that out and report their current status. Commissioner Speaker stated could be unaffordable or do they have other options. Commissioner Curran asked is we have a consensus that would include this information in our recommendation? It's consistent with past practice so yes. Commissioner Curran explained the Board would have the draft copy of the letter from last meeting and we would like to start voting on Thursday. Mr. Kulhanek will bring the recommendations. 3 Mr. Kulhanek explained the information on the City of Dearborn, they did the 80/20 cost sharing, the opposite of the hard cap that were doing. Commissioner Curran will work with Mr. Kulhanek to draft a letter of recommendation. She questioned whether the Board wants to give the City Clerk an increase, as the Mayor will be getting 5% increase. Commissioner Speaker is concerned that if we restore the Mayor's salary and do a cost of living increase for the Clerk, why not council? Commissioner Huggler stated the Clerk's case he underpaid but the Council and Mayor are not. Commissioner Curran stated politically with the Council going to 26 meetings and we've given them a raise, their workload hasn't change but the perception is that it would. I'm sure there would be enough to give them a raise, especially if were not sure if any raises are going to be given to any city employees. Currently Council is at the 2002 rate plus no healthcare which they did have in 2002. Commissioner LeDue stated restoring the Mayor's salary and leaving everyone else staying where they are especially without a request from anyone else I am reluctant to push it. The consensus was to restoring the Mayor's salary to 2002 level. Next agenda — to finalize the recommendations and the letter of transmittal. Commissioner Curran asked do Board want to present this to Council or just forward it. The Commission members unanimously agree to forward it. We've never presented it before. New Business Don passed information on healthcare. Commission Member Comments ADJOURN The meeting adjourned at 9:47 p.m. Respectfully Submitted, Lindsay Green, Recording Secretary Lansing City Council Approved by the Commission on: 121 R �f1 T—'t r� n 1Ij aD,1�1 _9 r�•.� .^•.e MINUTES Elected Officers Compensation Commission Thursday, March 28, 2013 Tenth Floor Council Conference Room, City Hall 9:00 a.m. CALL TO ORDER Meeting called to order at 9:02 a.m. I:iil1'WN_11111 Commissioner Patricia Curran, Chair Commissioner Cassie Alley, Vice Chair Commissioner Brian T. Huggler Commissioner Don LeDuc Commissioner Liisa Speaker OTHERS PRESENT Lindsay Green, Council Staff Don Kulhanek, Law COMMUNICATIONS None. BUSINESS SESSION Approval of Minutes COMMISSIONER SPEAKER MADE A MOTION TO APPROVE THE MINUTES OF MARCH 21, 2013. MOTION CARRIED, 5-0. COMMISSIONER LEDUC MADE A MOTION TO APPROVE THE MINUTES OF MARCH 26, 2013. MOTION CARRIED, 5-0. Municipal Comparatives Report Reports, Presentations, Commission Questions and Discussion None. Old Business To Finalize the Recommendations and the Letter of Transmittal The members reviewed Mr. Kulhanek letter of transmittal. Commissioner Curran asked Mr. Kulhanek for the Clerk's actual salary. Mr. Kulhanek stated that it is $72,555.00. COMMISSIONER SPEAKER NiADE A MOTION TO RESTORE THE MAYOR'S SALARY TO $107,000.00. MOTION CARRIED, 5-0. COMMISSIONER HUGGLER MADE A MOTION TO CONTINUE THE SALARY OF THE CLERK AT $72,555.00. MOTION CARRIED, 5-0. COMMISSIONER LEDUC MADE A MOTION TO CONTINUE THE SALARY OF THE COUNCIL PRESIDENT AT $22,200 PER YEAR. MOTION CARRIED, 5-0. COMMISSIONER ALLEY MADE A MOTION TO CONTINUE THE COUNCIL VICE PRESIDENT'S SALARY AT $20,950.00. MOTION CARRIED, 5-0. COMMISSIONER HUGGLER MADE A MOTION TO CONTINUE THE SALARY OF COUNCILMEMBERS AT $20,200.00. MOTION CARRIED, 5-0. COMMISSIONER LEDUC MADE A MOTION TO ADOPT THE AMENDED AND RESTATED SUMMARY OF FRINGE BENEFITS INCLUDING THE HEALTHCARE REVISION. MOTION CARRIED, 5-0. COMMISSIONER LEDUC MADE A MOTION THAT WE FOLLOW THE PROCEDURE FOR APPROVAL OF THE MINUTES FROM THIS MEETING THAT WAS PREVIOUSLY FOLLOWED. MOTION CARRED, 5-0. New Business Commission Member Comments ADJOURN The meeting adjourned at 9:51 p.m. Respectfully Submitted, Lindsay Green, Recording Secretary 2 Lansing City Council Approved by the Commission on: