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HomeMy WebLinkAbout2019 EOCC MinutesMINUTES Elected Officers Compensation Commission Wednesday, February 6, 2019 @ 12:00 p.m. City Hall, City Council Conference Room, loth Floor CALL TO ORDER The meeting was called to order at 12:00 p.m. by Council Staff Sherrie Boak ROLL CALL Cassie Alley, Member- excused Gillian Dawson, Member Brian Huggler, Member Jeff McAlvey, Member Derek Melot, Member -excused Liisa Speaker, Member OTHERS PRESENT Sherrie Boak, Council Staff Jim Smiertka, Chief Deputy Attorney Sarah Lehr, Lansing State Journal CALL TO ORDER Ms. Boak called the meeting to order as the first meeting of the Commission. ROLL CALL Ms. Boak called roll call. EXCUSED ABSENCE MOTION BY MEMBER DAWSON, SECONDED BY HUGGLER TO EXCUSE MEMBER ALLEY AND MEMBER MELOT. MOTION CARRIED 4-0. APPROVAL OF AGENDA MOTION BY MEMBER HUGGLER, SECONDED BY MCALVEY TO APPROVE THE AGENDA. MOTION CARRIED 4-0. COMMUNICATIONS Ms. Boak briefly explained the materials in the packet, along with additional items from the 2015 and 2017 meetings. Member Speaker provided a more recent (2017) municipality comparison spreadsheet to be used, and Council staff was asked to make copies. BUSINESS Election of Officers for 2019 MOTION BY MEMBER HUGGLER, SECONDED BY DAWSON TO APPOINT MEMBER SPEAKER AS CHAIRPERSON. MOTION CARRIED 4-0. MOTION BY MEMBER MCALVEY, SECONDED BY SPEAKER TO APPOINT MEMBER DAWSON AS VICE CHAIRPERSON. MOTION CARRIED 4-0. Determinina EOCC 2019 Meetina_ Schedule Dates were set as follows: Wednesday, February 13, 2019 at 2:00 p.m. Wednesday, February 20, 2019 at 12:00 p.m. Thursday, March 7, 2019 at 12:00 p.m. Thursday, March 14, 2019 at 1:30 p.m. Reaorts. Presentations. Commission Questions and Discussion The Commission reviewed documents and determined they would keep the 2017 municipality comparison as the most recent working document, asked Council Staff to request updated information from HR on that document to include East Lansing and remove Rochester; request updated union contract information and updated director salaries. Council Staff was asked to invite Council Members, the Mayor and the Clerk to the next meeting on February 13, 2019. Council Staff was asked to invite Ms. Bennett, Finance Director, to the next meeting on February 13, 2019 to provide an updated financial overview similar to what was presented in 2017. Member Huggler confirmed that there have not been any new reports from the Financial Health Team, since he also sits on that Board. Council Staff was asked to request updated information from the Mayor's office on the cost of living and consumer price index. Old Business The Commission reviewed the spreadsheet that detailed all the recommendations the Commission had made in the past and Council Staff was asked to update the 2017 information to reflect the recommended tier/step that was proposed. New Business No new business Commission Member Comments No comments at this time. OTHER No other discussions were held. PUBLIC COMMENT No public comment. ADJOURN Adjourned at 12:29 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Approved by Committee on: February 13, 2019 MINUTES Elected Officers Compensation Commission Wednesday, February 13, 2019 @ 2:00 p.m. City Hall, City Council Conference Room, 101h Floor ROLL CALL Liisa Speaker, Chairperson Gillian Dawson, Vice Chairperson Brian Huggler, Member Jeff McAlvey, Member Derek Melot, Member Cassie Alley, Member - excused OTHERS PRESENT Sherrie Boak, Council Staff Jim Smiertka, Chief Deputy Attorney- arrived at 2:07 p.m. Chris Swope, City Clerk CALL TO ORDER Chairman Speaker called the meeting to order at 2:01 p.m. ROLL CALL Chairman Speaker called roll, all members present except Member Alley. EXCUSED ABSENCE MOTION BY MEMBER HUGGLER, SECONDED BY MELOT TO EXCUSE MEMBER ALLEY. MOTION CARRIED 5-0. APPROVAL OF AGENDA MOTION BY MEMBER HUGGLER, SECONDED BY DAWSON TO APPROVE THE AGENDA AS PRESENTED FOR FEBRUARY 13, 2019. MOTION CARRIED 5-0. APPROVAL OF MINUTES MOTION BY MEMBER MCALVEY, SECONDED BY DAWSON TO APPROVE THE MINUTES FROM FEBRUARY 6, 2019 AS PRESENTED. MOTION CARRIED 5-0. COMMUNICATIONS Ms. Boak distributed the up to date EOCC Past Recommendations spreadsheet with the details on the 2017 recommendation. BUSINESS Reoorts. Presentations. Commission Questions and Discussion Old Business Elected Officials Updates Ms. Boak stated to the Commission that of the Council Members, there were some out town for work, working and unable to attend or did not have an interest in speaking at this time to the Commission at this time. Ms. Boak stated to the Commission that Ms. Harkins from the Mayor's office was out ill, and wanted to reschedule to attend the next meeting on February 20, 2019. Mr. Swope spoke briefly on the changes in his office since 2017. That included the task now of being the administrator of the new Medical Marihuana Licensing Ordinance. Prior to this new responsibility he had 5 FT and 1 PT with temporary help during elections. He currently has 7 FT and 1 PT staff. Chairperson Speaker asked if the new responsibility required more travel time in the City. Mr. Swope confirmed he does have additional travel when is his office is required to check on locations of facilities. He concluded that he was not present to ask for anything specific from the Commission. Member Huggler asked Mr. Swope if he was surprised in 2017 when the Council rejected their recommended increase for him. Mr. Swope admitted he was, but thought it was a comparable recommendation with other communities. The Commission asked Mr. Swope how long he has been with the City, and was provided the details the he was elected in 2005 and sworn -in in 2006. He was then asked if he was making the same salary now that he was making in 2013, and he confirmed. Member Melot asked if in 2017 the Commission discussed an increase based on inflation. Member Huggler confirmed and stated in 2017 they proposed 2% to keep up with inflation for the Mayor and Clerk, but no increase for the Clerk. Consumer Price Index Information The Commission reviewed the documents, noting the difference between now and 2015 at 6.2%. Member Melot pointed out that there could be a large increase if they bring all elected officials up to inflation. Member Huggler agreed, stating again that is why in 2017 they attempted to gradually bring it up. The Commission discussed amongst themselves on bringing in Council Members to asked them questions on increases. Mr. Smiertka confirmed they could have them in attendance as long as there is no quorum and discuss their suggestions with them. The Commission also discussed an option of requesting a joint meeting with the Committee of the Whole and this Commission, individual discussions with an EOCC Member and an individual Council Member for their input. Mr. Smiertka stated to the Commission they could meet with individual Council Members one-on-one but the Commission could not hold any deliberations outside these Commission meetings. The Commission suggested a survey for Council Members to determine what their consideration would be, and also each Commission Member taking one Council Member and calling or meeting with them. The Commission asked for the specifics on who voted for and against the rejection in 2017. Ms. Boak pulled up the Committee of the Whole minutes and emailed the Clerk for specifics at the Council meeting. It was relayed to the Commission that at the Committee of the Whole (4/10/17) meeting it was unanimous with 7-0 (Council Member Brown Clarke was not present), and the same vote of unanimous at City Council. (4/10/17). Member McAlvey recommended to the Commission that the Clerk and Mayor receive increases. Member Melot opined that it was unusual for Council Members who are part time to make the determination if the Mayor and Clerk, who are full time, would or could get increases. Member Dawson suggested the when speaking to Council Members the Commission Members should point out that if an increase is not done now, it will be larger in the future to make up to inflation and eventually will be an impact on the City budget. Human Resources Information Ms. Boak stated that the HR Department stated they are still working on the Municipality Comparison spreadsheet. Noting they were asked to include East Lansing and eliminate Rochester. The Commission reverted back to the discussion on meeting with Council Members, and determined that Member Melot would draft a letter to the Mayor and Council President to be placed on a Council Agenda the night the Recommendation is referred so that each Commission Member can speak during a presentation on why they determined what they did. Mr. Smiertka spoke briefly on the timeline of the recommendation itself; submitted to the Clerk's office, placed on file and on the agenda, and then the recommendation will become effective 30 days after the filing with the Clerk, unless Council adopts a resolution, with 6 votes, to reject the recommendation within that time frame. Member McAlvey noted to the Commission that his belief is that to attract quality people to the positions, the City needs to offer increases for the Mayor and City Clerk. Member Melot stated he would have the letter for the Mayor and Council for their presentation at a future Council meeting at the Commission's February 20, 2019 meeting. The Commission briefly discussed with Mr. Smiertka the benefit items in the recommendation and what they can do and what could be tied to another benefit contract. New Business Finance Director Confirmed attendance for the 2/20/2019 meeting. Commission Member Comments No member comments at this time. OTHER No other items to discuss. PUBLIC COMMENT No public comment. ADJOURN Adjourned at 2:52 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Approved by Committee on: February 20, 2019 MINUTES Elected Officers Compensation Commission Wednesday, February 20, 2019 @ 12:00 p.m. City Hall, City Council Conference Room, loth Floor ROLL CALL Liisa Speaker, Chairperson Gillian Dawson, Vice Chairperson- excused Brian Huggler, Member- excused Jeff McAlvey, Member Derek Melot, Member Cassie Alley, Member OTHERS PRESENT Sherrie Boak, Council Staff Jim Smiertka, Chief Deputy Attorney Angela Bennett, Finance Director Samantha Harkins, Chief of Staff, Mayor's Office CALL TO ORDER Chairman Speaker called the meeting to order at 12:00 p.m. ROLL CALL Chairman Speaker called roll, all members present except Member Huggler and Member Dawson. EXCUSED ABSENCE Members Huggler and Dawson were excused. APPROVAL OF AGENDA MOTION BY MEMBER ALLEY, SECONDED BY MELOT TO APPROVE THE AGENDA AS PRESENTED FOR FEBRUARY 20, 2019. MOTION CARRIED 4-0. APPROVAL OF MINUTES MOTION BY MEMBER MELOT, SECONDED BY MCALVEY TO APPROVE THE MINUTES FROM FEBRUARY 13, 2019 AS PRESENTED. MOTION CARRIED 4-0. COMMUNICATIONS The packet contained an article from the Lansing State Journal on the pay scales for the City of East Lansing provided by Member Huggler prior to the meeting. The packet contained an email from Mark Lawrence with the Mayor's office clarifying that the Cost of Living Index he provided the Commission at the last meeting, was indeed the Midwest Region; up 2.0% from 12/2017 to 12/2018. BUSINESS Reoorts. Presentations. Commission Questions and Discussion Elected Officials Uodates- Mavor's Office Ms. Harkins began by acknowledging the Commission for having her at the meeting, and stated per the Mayor that he was not asking for a raise. The City is in with a unique leadership having "strong mayor" government, which only exists in 22 of the 232 municipalities. In those 22 cases the Mayor is also the Chief Operating Manager. Member Speaker asked what communities in those 22 is equivalent in size to Lansing, and Ms. Harkins stated the closest would be Dearborn or Rochester Hills. The neighboring communities of East Lansing and Meridian Township have half of the population Lansing City does. Mr. Smiertka added that in the City, the Mayor has to perform the duties of Operating Officer and work with the political side also. Ms. Harkins added that in some communities the Mayor is appointed by Council, but in the City the Clerk, Mayor and Council are all elected so they do not report to each other. Ms. Harkins left the meeting. The discussion was held on what would be comparable for the City of Lansing on salaries spreadsheet, and Member Melot noted it would be Madison, Wisconsin. Finance Director Presentation Ms. Bennett distributed a financial overview to the Committee. Included in the handout were graphs outlining the budget revenues, including property taxes at 30%, income taxes at 29%, and State Revenues at 14%. The presentation then detailed the breakdown on each of those revenues. The final slides represented the budgeted expenditures with wages at 33% ($44.3 million) and fringe benefits at 37% ($49 million). Member Speaker asked if the current law amendments that speak to the court funding, particular to 54- A District Court would affect the City's future budgeting. Ms. Bennett confirmed that the court fines and fees to offset some of the budget, however the City does pay the majority of their budget, with only the Judges being funded by the State. If the funding changes per the way it is currently being proposed, the City will be affected because they would have to subsidize more. Member Melot stated that the City is going to be hit on their funding as the State continues to change their responsibilities. He then asked Ms. Bennett the number of full time City employees. Ms. Bennett answered the question by stating there are currently 870 full time employees, including police and fire. This lower by 1/3 from 2000. Member Melot pointed out to the Committee for consideration that with a 1/3 lower employees it is harder for the Mayor to manage the day to day activities of the City. Member McAlvey asked Ms. Bennett if the Commission recommended increases that would total $20,000, if the City had those funds available. Ms. Bennett stated they do with currently $12.5 million in reserves, however she added that they need to keep in mind the fringe benefits would change also and combined, wages and benefits are 70% of the General Fund. This would affect the long term finances. Member Melot asked if all contracts are in deliberation currently. Ms. Bennett confirmed that either they are currently in deliberations or will be starting July 1, 2019. Member Speaker referred back to the 2017 department head salaries, at which there was a position "Chief Operating Officer" that did not appear on the 2019 salaries. Ms. Bennett explained that the position was a person in dual -roll, and with the new Administration that position of "Chief Operating Officer" was not filled and the funds were reallocated. Old Business Member Melot provided a letter he drafted based on the conversation at the last meeting on and interest of the Commission attending a Committee of the Whole meeting or Council meeting to speak to the Council on their intentions. After a review of the letter, Chairperson Speaker signed the letter and provided to Ms. Boak to forward to Council President Wood. Chairperson Speaker then indicated that Member Huggler was able to speak to Council Member Wood before he left town and she agreed for the Commission to attend the Committee of the Whole meeting on March 11. 2019. After discussion by the Commission, it was determined the Commission Members that could attend (Melot and McAlvey) would present the Commission's recommendations and findings, but not formalize the recommendation letter for the Clerk until after the March 11, 2019 Committee presentation. Any formal presentation documents will be provided to Ms. Boak by Friday, March 8, 2019. The Commission briefly discussed their conversations they held individually with Council Members and discussed increases for the full time elected officials (Mayor and Clerk) based on the Cost of Living. Member McAlvey offered to research the Detroit Cost of Living and proposed doing comparable at the presentation to the Committee of the Whole. Member Speaker asked the Commission if any of them were considering increases for the Council. There was no consensus on an option. Mr. Smiertka reminded the Commission if they chose increases they could propose a percentage for July 1, 2019 and another one July 1, 2020 to break up the increase. Member Melot encouraged the Commission to consider the option of proposing to change the City Charter if their recommendation is rejected. This would allow the change from Council approval to another form of approval for elected officials pay and fringe benefits. Member Alley asked for Ms. Boak to inquire with the Clerk on how much time he is now devoted to the enforcement and licensing of medical marihuana. Mr. Smiertka confirmed his office has had to designate specific lawyers to the program also. Member Alley also asked if the Commission had held discussions on fringe benefits and if they considered the entire increase of 6%. The Commission confirmed they had not considered any changes to the fringe benefits. The Commission then determined they would consider in their recommendation an increase based on inflation for the Clerk and Mayor. Mr. Smiertka briefly noted to the Commission that in 1997 that Commission had considered and did draft an ordinance to remove the EOCC and give all decisions and recommendations to the City Council. It was determined that Member Speaker would start working on the draft recommendation and Member Melot would work on the presentation for the Committee of the Whole on March 11, 2019. This draft will be brought back to the Commission on March 7, 2019, Human Resources Information The Commission reviewed the recent municipality spreadsheet provided at the meeting and earlier in the day via email. It was noted the East Lansing salary for the City Manager did not match what was published in the LSJ article ($167, 000), and that instead of pulling the 2017 forward into this spreadsheet, HR just stated no response. Ms. Boak was asked to request that HR continue to update the spreadsheet and instead of stating "no response" carry the 2017 information and note that. New Business No new business. Commission Member Comments No member comments at this time. OTHER No other items to discuss. PUBLIC COMMENT No public comment. ADJOURN Adjourned at 1:04 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Approved by Committee on: March 7, 2019 MINUTES Elected Officers Compensation Commission Thursday, March 7, 2019 @ 12:00 p.m. City Hall, City Council Conference Room, 10th Floor ROLL CALL Liisa Speaker, Chairperson Gillian Dawson, Vice Chairperson- unexcused Brian Huggler, Member Jeff McAlvey, Member Derek Melot, Member Cassie Alley, Member -excused OTHERS PRESENT Sherrie Boak, Council Staff Amanda O'Boyle, Assistant City Attorney Jim Smiertka, Chief Deputy Attorney- arrived at 12:19 p.m. CALL TO ORDER Chairman Speaker called the meeting to order at 12:02 p.m. ROLL CALL Chairman Speaker called roll. EXCUSED ABSENCE Member Alley was excused. APPROVAL OF AGENDA MOTION BY MEMBER HUGGLER, SECONDED BY MELOT TO APPROVE THE AGENDA AS PRESENTED FOR MARCH 7, 2019. MOTION CARRIED 4-0. APPROVAL OF MINUTES MOTION BY MEMBER HUGGLER, SECONDED BY MELOT TO APPROVE THE MINUTES FROM FEBRUARY 20, 2019 AS PRESENTED. MOTION CARRIED 4-0. COMMUNICATIONS/BUSINESS Reoorts. Presentations. Commission Questions and Discussion The Committee reviewed the document response from the City Clerk on what additional time and labor has been involved since medical marihuana applications. The consensus of the Committee was that members have the document for reference at the Committee of the Whole March 11, 2019 for supporting documents in their presentation. The timeline from Member Melot was distributed, it was briefly reviewed and the consensus of the Committee was to have the last meeting on March 14th, 2019 at 1:30 p.m. They held discussions on when they will vote on the final determination. It was agreed that the presentation would get approval today and they would meet after the presentation to finalize their recommendation. Member McAlvey recommended changing the title of the presentation so it did not appear as a proposal they were looking for input on. The Committee then reviewed the draft that will be presented to the Committee of the Whole on March 11, 2019. Included in the document will be the Committees function, key factors, comparisons, inflation stats and determination. The Committee discussed interests they heard in adding increases in for Council Members, using the same inflation tables used for the Mayor and Clerk. Member Speaker voiced a concern with comparisons for Council because Lansing City Council is higher than comparable cities. Her other concern, she pointed out to the Committee, was that if Council does not want an increase due to it being an election year, they would be inclined to reject, which would reject the entire recommendation. Member McAlvey noted that in his conversations, that is the benefit to present to Council on March 11, 2019 before they make their final determination. Member Huggler recommended a slide in the presentation for the comparisons for Council and inflation. The Committee reviewed the most recent spreadsheet from HR on municipality comparisons and determined Council should be compared to Grand Rapids, Dearborn and Madison, WI because they are similar communities. Council Member McAlvey also suggested stating in their presentation that over the last couple years where there has been no increase, the City has provided percentage increases to all unions. Member Melot confirmed that he had looked at that when preparing the draft document and used the LFD who received an average of 1.74 increase and he was looking at using 1.99. He then referred the Committee to slide 9, which was a determination slide with a 2-step process adjusting the salary to inflation from 2015-2019. Then step 2 would be adopting inflation from 2020 and 2021 to get them in place by the time this Committee meetings again in 2021. This would be $17,000 per year for the Mayor and Clerk, but since there will now be increases for Council, Member Melot stated he would recalculate that figure. The consensus of the Committee is that no final letter of determination be drafted until after the Committee of the Whole meeting. Mr. Smiertka pointed out to the Committee that at that meeting the Committee of the Whole cannot make any recommendations or suggestions to them. Member Speaker asked if the topic of the increased work for the Clerk should be left off the table to justification at this time, and Member Melot agreed, stating there needs to be time for the item (marihuana) to come into full understanding at the State and local level to determine its impact fully, and so that could be re-evaluated in 2021. Ms. Boak asked for clarification on the years they will reference in their presentation and letter, as if it will be calendar year or budget year. Member Melot clarified it would be calendar year, using the annual inflation rates. MOTION BY MEMBER HUGGLER, SECONDED BY SPEAKER TO AUTHORIZE MEMBER MELOT AND MCALVEY TO PRESENT TO COUNCIL ON MARCH 11, 2019 AT THE COMMITTEE OF THE WHOLE MEEITNG THE PRESENTATION WITH THE MODIFICATIONS FROM THIS MEETING, CARRIED 4-0. Old Business Human Resources Information The spreadsheet on comparable municipalities from 3/7/2019 was reviewed earlier in the meeting. New Business No new business. Commission Member Comments No member comments at this time. OTHER No other items to discuss. PUBLIC COMMENT No public comment. ADJOURN Adjourned at 12:28 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Approved by Committee on: March 14, 2019 MINUTES Elected Officers Compensation Commission Thursday, March 14, 2019 @ 1:30 p.m. City Hall, City Council Conference Room, 10' Floor ROLL CALL Liisa Speaker, Chairperson Gillian Dawson, Vice Chairperson Brian Huggler, Member Jeff McAlvey, Member- arrived at 1:37 p.m. Derek Melot, Member Cassie Alley, Member OTHERS PRESENT Sherrie Boak, Council Staff Jim Smiertka, Chief Deputy Attorney Kyle Kaminski, Lansing City Pulse CALL TO ORDER Chairman Speaker called the meeting to order at 1:30 p.m. ROLL CALL Chairman Speaker called roll. EXCUSED ABSENCE APPROVAL OF AGENDA MOTION BY MEMBER ALLEY, SECONDED BY HUGGLER TO APPROVE THE AGENDA AS PRESENTED FOR MARCH 14, 2019. MOTION CARRIED 5-0. APPROVAL OF MINUTES MOTION BY MEMBER HUGGLER, SECONDED BY MELOT TO APPROVE THE MINUTES FROM MARCH 7, 2019 AS PRESENTED. MOTION CARRIED 5-0. COMMUNICATIONS/BUSINESS Reports, Presentations, Commission Questions and Discussion The Commission had made available to them minutes from a City Council meeting from 1983, emailed information from the City Attorney to Council Staff on explanations and opinions on Home Rule Act 117.5c; and questions on separation recommendations. Mr. Smiertka then explained an ordinance was adopted in 1973 and it must be read in connection with the State Statute, pursuant to the Home Rules City Act. That act provision requires the EOCC to make a decision on each member, and he his opinion was that Council can reject for each member. The Commission then discussed five (5) categories (Mayor, Clerk, President, Vice President, and Council Members) and if they should put in one recommendation letter as has been customary, because unless a Council Member calls the question to divide the answers, they can reject all if the Chair treats it all as one. The Commission then considered five (5) letters, one letter per recommendation; Mayor, Clerk, Council President, Vice President and Council Members. Member Melot asked Law if the Commission does five (5) letters, does the Council have the authority to pull together and take one action. Mr. Smiertka stated a Council Member Would have to move it that way, but with five (5) letters it will be referred as five (5) separate items. Member Speaker stated her interpretation of the Home Rule Act and the ordinance was the recommendation on each elected official and there was nothing to say it cannot be done in one letter, and if someone wanted to separate vote they could. Mr. Smiertka agreed. Member Melot recommended five (5) letters and Member Speaker recommended the option of three (3) letters with Council positions all listed in one letter. Council Member Alley asked her fellow Commission members what they were proposing to consider. Mr. Melot then provided his opinion and overview of how the presentation went with Council on Monday, stated he believed there is an overwhelming opinion they will reject, figuring his opinion five (5) would vote down anything, and they are not comfortable with the EOCC. Member McAlvey stated in his opinion, Council was not like that, but his impression was that they felt uncomfortable that they were determining how they got paid. Member Melot answered that in his opinion the EOCC exists to do the work and make the determination, and if Council does not want to formally act they do not have to, and in turn the recommendation would be in effect. Member Huggler's opinion from watching the meeting tape, he said, was that Council did not feel comfortable going back to 2017 on what they already overturned. The 20% in 2015, was large, and granted but at the time a lot to swallow, so he understood why they were reluctant in 2017. He saw that Council had stronger support of increases from 2018, but not the catch-up from 2015-2017. Member Gillian asked if the Commission could do multiple recommendations; one for each year. Mr. Smiertka stated they cannot go back 30 days out, and the determination should be of the salary the EOCC is important today. Member Speaker noted that the EOCC is making a recommendation, and it is Council's determination to accept or reject. Mr. Smiertka corrected and clarified that under the State Statue the EOCC makes the "determination" not a "recommendation" and anywhere it is stated as such it should be changed to "determination". Member Melot again stated he did not believe that Council understand they do not have to do anything. Mr. Smiertka noted to the Commission that what they saw from the Council on Monday was them signaling their personal preferences. Member McAlvey noted he did not hear a defined determination from the Council. Member Melot pointed out to the Commission their charge is to a determination of what is best for the City, regardless of how City Council will vote, and if in the end the result is no one gets anything, they need to consider the ordinance. The Commission began a discussion on proposed options and what was presented to the Council on Monday. Member Melot distributed a document that listed each of the five (5) positions: Mayor — 2019-$134,099; 2020-$136,781; 2021-$139,653 Clerk — 2019-$90,903; 2020-$92,721; 2021- $94,668 Council President — 2019-$27,813; 2020-$28,369; 2021-$28,965 Council Vice President — 2019-$26,247; 2020- $26,772; 2021-$27,334 Council Members — 2019-$25,496; 2020-$26,006; 2021-$26,552 Member Melot noted that he based the new numbers on starting with the 2018 inflation rate of 2.46% and 2019 inflation rate of 1.90% for the first increase, then the annual inflation rates for 2020 and 2021; taking them up until the EOCC meets again. The Commission reviewed and briefly discussed the letter, which would be drafted by Member Speaker. It was noted to change "recommendation" to "determination" wherever it appears, do five (5) letters and each would have three columns; 2019, 2020 and 2021. MOTION BY MEMBER HUGGLER, SECONDED BY MEMBER MELOT THAT THE COMMISSION DETERMINED THE SALARY BREAKDOWN DISTRIBUTED BY MEMBER MELOT TITLED "PROPOSAL FOR DETERMINATION, MARCH 2O19" WOULD BE LABELED "EXHIBIT A" OUTLINING THE FIGURES FOR 2019, 2020 AND 2021 FOR MAYOR, CLERK, COUNCIL PRESIDENT, COUNCIL VICE PRESIDENT AND COUNCIL MEMBERS. MOTION CARRIED 6-0. Mr. Smiertka acknowledged he would hand deliver the document (Exhibit A) to the finance department for verification of the numbers. MOTION BY MEMBER MELOT, SECONDED BY DAWSON TO APPROVE THE DETERMINATION IN EXHIBIT A, AS VERIFIED BY THE FINANCE DEPARTMENT, IN FIVE (5) SEPARATE LETTERS BASED ON THE POSITIONS LISTED. MOTION CARRIED 6-0. Member Melot asked if another meeting was needed to sign the letters, and Mr. Smiertka stated that they made their decision and took action on that in an open meeting so there was not need. Member Speaker stated she would finalize the letters, get a copy to Ms. Boak who will do the final formatting and send to each member individually for one last proof, and once finalized Ms. Boak will inform the Members and they can come into the office to sign the letters. It was confirmed with Mr. Smiertka that he would have finance verify the exact numbers. Old Business No old business. New Business No new business. Commission Member Comments Member McAlvey noted for the record that the Commission went to Council to ask for feedback; they got feedback, listened and both parties were receptive. OTHER No other items to discuss. PUBLIC COMMENT No public comment. ADJOURN Adjourned at 2:02 p.m. Respectively submitted by: Sherrie Boak, City Council Office Manager Placed on File Elected Officers Compensation Commission March 14, 2019 Council President Carol Wood Members of the Lansing City Council Tenth Floor City Hall Lansing, Michigan 48933 Dear President Wood and Councilmembers: The Elected Officers Compensation Commission (EOCC) met in committee during February and March 2019. The EOCC reviewed internal economic and financial documents and the current salary and benefit compensation packages of the Mayor, City Clerk, and members of the City Council. In addition, the EOCC compared various salary structures held by similar officers in comparable communities across Michigan and neighboring States. The following people attended the Commission meetings to answer questions and share their thoughts; Chris Swope, Samantha Harkins and Angela Bennett. In addition, the Commission presented to the City Council at their Committee of the Whole meeting on March 11, 2019. Our determination is based on the National and State economic climate, the current financial condition of the City, our review of executive and legislative responsibilities, and salary/benefit comparisons with other Michigan communities. The Commission considered the compensation history for all relevant positions going back as far as 1991, and considered the feedback from various executive officers and City staff. Our determination, which shall be implemented on January 1, 2019, makes changes to the compensation provided to the City Clerk. DETERMINATION Salaries The Commission determines that annual salaries, and respective effective dates, shall be as follows: January 1, 2019 January 1, 2020 January 1, 2021 City Clerk: $90,902.77 $92,720.83 $94,667.97 2 Fringe Benefits The Commission adopts by reference the Elected Officials summary of Fringe Benefits 2019, attached. The benefits are to be provided for the elected officials as set forth therein. However, it is intended that the elected officers who receive healthcare benefits, receive the same level and types of coverages as the City provides to its other employees. Therefore, if the State of Michigan legislates to alter the amounts a City may pay towards providing its employees' healthcare or otherwise limits such healthcare coverage, the legislation shall also affect the elected officials when it affects other City employees. Additionally, should the City decide to substitute insurance carriers or methods of providing coverage for economic advantage in place of the healthcare described in the attached summary, the City may do so, provided the current level of benefits are maintained or improved. Pursuant to previously approved fringe benefits for Council members, they may purchase health care at their own expense. Other Compensation It is acknowledged that none of the elected officers earn compensatory, vacation, or sick time, and upon termination, they are not entitled to any compensation for the same. TRANSMITTAL We, the members of the Elected Officers Compensation Commission, respectfully, adopt the collective determinations now transmitted. ELE TED OFFICERS COP Lii Speaker C i person Brian Huggler Member �- V "I Jeff McAlvey Member TION COMMISSION Gillian Dawson Vice Chairperson 061-a-Z-1—F Cassie Alley MP�A Derek Melot Member City of Lansing ELECTED OFFICIALS Summary of Fringe Benefits 2019 Elected officials shall be eligible for City -provided health, dental, and life insurance coverage, and for participation in any deferred compensation program, as summarized below. Unless otherwise noted, this Summary of Fringe Benefits is operative on JULY 1, 2019. The last adopted recommended Summary of Fringe Benefits remains operative until that date. I. FOR THE MAYOR AND CITY CLERK ONLY: Health Insurance: The City of Lansing shall provide at the time of being sworn in or during an annual open enrollment period the following choice of medical insurances. Coverage will be effective the first (111) day of the month following the date the Mayor or Clerk, respectively, are sworn in. If an elected official chooses a non -base plan, he or she will be required to pay the difference between the base and non -base plan, in addition to any premium share. Elected officials selecting the base plan below will receive a $400 cash payment incentive for each plan year chosen. • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $20.00 co -pay for office visits. Prescription drug co -pays are $10/$20/$40 or $15/$25/$50 for Physician's Health Plan. This plan includes a $500 calendar year limit on preventative services, emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. The Base Plan is as provided above. If the Base Plan exceeds the state mandated hard cap amount, the elected official will pay the difference. If the elected official chooses to "buy up" to an optional plan (either Option 1 or Option 2) the elected official will be responsible for any cost differential between the Base Plan premium and the premium of the selected optional plan chosen. Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: The Mayor and City Clerk are eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Opt out: The Mayor and City Clerk will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Mayor or City Clerk provides written proof of coverage from another source. The Mayor or City Clerk who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Mayor or Clerk had alternate coverage. Dental Insurance: The City pays the full premium costs for the Dental plan provided by the City, coverage includes the Mayor and City Clerk and family members. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with an $1,500 maximum per person per contract year. Mayor and City Clerk and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,500.00 lifetime maximum per person. Coverage is effective the first day of the month M following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as the active Mayor and City Clerk. The Mayor and City Clerk shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Mayor or City Clerk respectively has at least fifteen (15) years of service with the City. AFLAC: The Mayor and City Clerk will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Life Insurance: The City pays the premium for a base $50,000 of group life and $50,000 Accidental Death and Dismemberment Insurance for the Mayor and City Clerk. Life insurance coverage for dependents is available for a reasonable cost to the Mayor and City Clerk, in accordance with the following schedule: Spouse $25,000 Unmarried child, age 14 days to 6 months $500 6 months to 23 years $ 2,000 Coverage is effective one (1) month and one (1) day following the commencement of service. Summaries are available in the Department of Human Resources. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Parkine/Transaortation: The Mayor and City Clerk shall have designated parking in the basement of City Hall. Vehicle: An automobile will be provided for the regular full time use of the Mayor. Deferred Compensation: The Mayor and City Clerk shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. The Mayor and City Clerk will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: In accordance with the City Charter, officials elected on or after October 1, 1990 shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Mayor or City Clerk's gross salary. The Plan is administered by Wells Fargo Bank. 2) The Mayor and City Clerk become eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self -direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the fund designated as the default fund. 3) The Mayor and City Clerk will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self -direction of their respective investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Mayor and City Clerk have the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Mayor and City Clerk will be vested for all City contributions. Should the Mayor and City Clerk leave at the end of three full years the elected official will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Mayor and City Clerk are also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Mayor and City Clerk shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: Optional: This is a one-time only option that must be made in writing within thirty (30) days after being officially sworn in or having elected to qualify on or before July 1, 2001. For all officials elected after October 29, 1990, the City agrees to provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to active Mayor and City Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Mayor and City Clerk have at least 15 years of service with the City and be at least 55 years of age. This coverage is available at a cost of 3.25% of the Mayor and City Clerk's respective gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree health benefits shall not include spouse or family coverage for a Mayor or City Clerk first elected after July 1, 2009. II. FOR CITY COUNCILMEMBERS: The fringe benefits designated in this Section II are for City Councilmembers. Health Insurance: Councilmembers shall have the option to purchase health care insurance, at their own expense. If chosen, coverage will be effective the first (1st) day of the month following the date the Councilmember is sworn in (commencement of service) or chosen during an annual open enrollment period. Current plans offered are: • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $15.00 co -pay for office visits. Prescription drug co -pays are $0/$15/$40. Emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: Councilmembers will be eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Dental Insurance: Councilmembers shall have the option to purchase this dental insurance, at their own expense, on the same terms and at the same rate as other part-time employees of the City for whom such coverage is available, currently UAW. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with a $1,500 maximum per person per benefit year. Councilmembers and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,000.00 lifetime maximum per person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as active Councilmembers. The Councilmember shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Councilmember has at least fifteen (15) years of service with the City. Councilmembers first taking office on or after January 1, 2010, shall not be eligible for this benefit. AFLAC: The Councilmembers will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Councilmembers first taking office on or after January 1, 2019 shall not be eligible for this benefit. Life Insurance: Councilmembers are not eligible for City provided group life and Accidental Death and Dismemberment Insurance. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. ParkinLY/Transnortation: Councilmembers shall have designated parking as provided by the Rules adopted by City Council. Deferred Comnensation: Councilmembers shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. Councilmembers will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: Officials elected on or after October 1, 1990 and first taking office before January 1, 2010, shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Councilmembers' gross salary. The Plan is administered by Wells Fargo. 2) The Councilmember becomes eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self direct the investment options of their retirement account. Failure to enroll_ prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the GIC (Guaranteed Investment Contract) Fund. 7 3) The Councilmember will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self direction of the Councilmember's investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Councilmember has the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Councilmember will be vested for all City contributions. Should the Councilmember leave at the end of three full years the Councilmember will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Councilmember is also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Councilmember shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: For all officials elected after October 29, 1990 and taking office before January 1, 2010 who exercised the option to participate in retiree healthcare, the City will provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to the active Mayor and Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Councilmember has at least 15 years of service with the City and be at least the age of 55. This coverage is available at a cost of 3.25% of the Council member's gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree Healthcare Oat out: Councilmembers who receive Retirement Health Care insurance will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Councilmember provides written proof of coverage from another source. Any Councilmember who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Councilmember had alternate coverage. Department of Human Resources, 8°i Floor, 124 W. Michigan, Lansing MI 48933. Phone: 483-4014 EQUAL OPPORTUNITY EMPLOYER Revised 4/21/04: Retiree dental Revised 03/28/2007: Vision Revised 03/30/09: Phased elimination of benefits for Councilmembers Revised 03/22/11: For clarity Revised 4/02/13: To provide for three tier optional health insurance plans in compliance with PA 152 of 2011, and other clarifications Revised 3/5/2015: For technical corrections and clarifications Revised 3/17/2017 For Clerk and Mayor Compensation Revised 3/14/19 for Compensation Fringe Benefits The Commission adopts by reference the Elected Officials summary of Frinae Benefits 2019, attached. The benefits are to be provided for the elected officials as set forth therein. However, it is intended that the elected officers who receive healthcare benefits, receive the same level and types of coverages as the City provides to its other employees. Therefore, if the State of Michigan legislates to alter the amounts a City may pay towards providing its employees' healthcare or otherwise limits such healthcare coverage, the legislation shall also affect the elected officials when it affects other City employees. Additionally, should the City decide to substitute insurance carriers or methods of providing coverage for economic advantage in place of the healthcare described in the attached summary, the City may do so, provided the current level of benefits are maintained or improved. Pursuant to previously approved fringe benefits for Council members, they may purchase health care at their own expense. Other Compensation It is acknowledged that none of the elected officers earn compensatory, vacation, or sick time, and upon termination, they are not entitled to any compensation for the same. TRANSMITTAL We, the members of the Elected Officers Compensation Commission, respectfully, adopt the collective determinations now transmitted. OFFICERS Brian Huggler Member n Jeff McAlvel Member TION COMMISSION Gillian Dawson Vice Chairperson Cassie Alley Member LAA Uy Derek Melot Member Elected Officers Compensation Commission March 14, 2019 Council President Carol Wood Members of the Lansing City Council Tenth Floor City Hall Lansing, Michigan 48933 Dear President Wood and Councilmembers: The Elected Officers Compensation Commission (EOCC) met in committee during February and March 2019. The EOCC reviewed internal economic and financial documents and the current salary and benefit compensation packages of the Mayor, City Clerk, and members of the City Council. In addition, the EOCC compared various salary structures held by similar officers in comparable communities across Michigan and neighboring States. The following people attended the Commission meetings to answer questions and share their thoughts; Chris Swope, Samantha Harkins and Angela Bennett. In addition, the Commission presented to the City Council at their Committee of the Whole meeting on March 11, 2019. Our determination is based on the National and State economic climate, the current financial condition of the City, our review of executive and legislative responsibilities, and salary/benefit comparisons with other Michigan communities. The Commission considered the compensation history for all relevant positions going back as far as 1991, and considered the feedback from various executive officers and City staff. Our determination, which shall be implemented on January 1, 2019, makes changes to the compensation provided to the Council Members. DETERMINATION Salaries The Commission determines that annual salaries, and respective effective dates, shall be as follows: January 1, 2019 January 1, 2020 January 1, 2021 Council Members: $25,308.19 $25,814.35 $26,356.45 2 City of Lansing ELECTED OFFICIALS Summary of Fringe Benefits 2019 Elected officials shall be eligible for City -provided health, dental, and life insurance coverage, and for participation in any deferred compensation program, as summarized below. Unless otherwise noted, this Summary of Fringe Benefits is operative on JULY 1, 2019. The last adopted recommended Summary of Fringe Benefits remains operative until that date. I. FOR THE MAYOR AND CITY CLERK ONLY: Health Insurance: The City of Lansing shall provide at the time of being sworn in or during an annual open enrollment period the following choice of medical insurances. Coverage will be effective the first (1S') day of the month following the date the Mayor or Clerk, respectively, are sworn in. If an elected official chooses a non -base plan, he or she will be required to pay the difference between the base and non -base plan, in addition to any premium share. Elected officials selecting the base plan below will receive a $400 cash payment incentive for each plan year chosen. • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $20.00 co -pay for office visits. Prescription drug co -pays are $10/$20/$40 or $15/$25/$50 for Physician's Health Plan. This plan includes a $500 calendar year limit on preventative services, emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. The Base Plan is as provided above. If the Base Plan exceeds the state mandated hard cap amount, the elected official will pay the difference. If the elected official chooses to "buy up" to an optional plan (either Option 1 or Option 2) the elected official will be responsible for any cost differential between the Base Plan premium and the premium of the selected optional plan chosen. Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: The Mayor and City Clerk are eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Out out: The Mayor and City Clerk will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Mayor or City Clerk provides written proof of coverage from another source. The Mayor or City Clerk who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Mayor or Clerk had alternate coverage. Dental Insurance: The City pays the full premium costs for the Dental plan provided by the City, coverage includes the Mayor and City Clerk and family members. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with an $1,500 maximum per person per contract year. Mayor and City Clerk and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,500.00 lifetime maximum per person. Coverage is effective the first day of the month rd following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as the active Mayor and City Clerk. The Mayor and City Clerk shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Mayor or City Clerk respectively has at least fifteen (15) years of service with the City. AFLAC: The Mayor and City Clerk will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Life Insurance: The City pays the premium for a base $50,000 of group life and $50,000 Accidental Death and Dismemberment Insurance for the Mayor and City Clerk. Life insurance coverage for dependents is available for a reasonable cost to the Mayor and City Clerk, in accordance with the following schedule: Spouse $25,000 Unmarried child, age 14 days to 6 months $500 6 months to 23 years $ 2,000 Coverage is effective one (1) month and one (1) day following the commencement of service. Summaries are available in the Department of Human Resources. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. ParkinLY/Transaortation: The Mayor and City Clerk shall have designated parking in the basement of City Hall. Vehicle: An automobile will be provided for the regular full time use of the Mayor. Deferred Comnensation: The Mayor and City Clerk shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. The Mayor and City Clerk will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: In accordance with the City Charter, officials elected on or after October 1, 1990 shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Mayor or City Clerk's gross salary. The Plan is administered by Wells Fargo Bank. 2) The Mayor and City Clerk become eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self -direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the fund designated as the default fund. 5 3) The Mayor and City Clerk will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self -direction of their respective investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Mayor and City Clerk have the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Mayor and City Clerk will be vested for all City contributions. Should the Mayor and City Clerk leave at the end of three full years the elected official will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Mayor and City Clerk are also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Mayor and City Clerk shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: Optional: This is a one-time only option that must be made in writing within thirty (30) days after being officially sworn in or having elected to qualify on or before July 1, 2001. For all officials elected after October 29, 1990, the City agrees to provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to active Mayor and City Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Mayor and City Clerk have at least 15 years of service with the City and be at least 55 years of age. This coverage is available at a cost of 3.25% of the Mayor and City Clerk's respective gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree health benefits shall not include spouse or family coverage for a Mayor or City Clerk first elected after July 1, 2009. H. FOR CITY COUNCILMEMBERS: The fringe benefits designated in this Section II are for City Councilmembers. Health Insurance: Councilmembers shall have the option to purchase health care insurance, at their own expense. If chosen, coverage will be effective the first (1st) day of the month following the date the Councilmember is sworn in (commencement of service) or chosen during an annual open enrollment period. Current plans offered are: • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $15.00 co -pay for office visits. Prescription drug co -pays are $0/$15/$40. Emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. G Benefit summaries and rate sheets are available in the Department of Human Resources Vision Plan: Councilmembers will be eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Dental Insurance: Councilmembers shall have the option to purchase this dental insurance, at their own expense, on the same terms and at the same rate as other part-time employees of the City for whom such coverage is available, currently UAW. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with a $1,500 maximum per person per benefit year. Councilmembers and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,000.00 lifetime maximum per person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance:, Eligible retirees shall be covered by the same insurance as active Councilmembers. The Councilmember shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Councilmember has at least fifteen (15) years of service with the City. Councilmembers first taking office on or after January 1, 2010, shall not be eligible for this benefit. AFLAC: The Councilmembers will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Councilmembers first taking office on or after January 1, 2019 shall not be eligible for this benefit. Life Insurance: Councilmembers are not eligible for City provided group life and Accidental Death and Dismemberment Insurance. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Parkine/Transaortation: Councilmembers shall have designated parking as provided by the Rules adopted by City Council. Deferred Comaensation: Councilmembers shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. Councilmembers will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem.: Officials elected on or after October 1, 1990 and first taking office before January 1, 2010, shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Councilmembers' gross salary. The Plan is administered by Wells Fargo. 2) The Councilmember becomes eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the GIC (Guaranteed Investment Contract) Fund. 7 3) The Councilmember will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self direction of the Councilmember's investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Councilmember has the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Councilmember will be vested for all City contributions. Should the Councilmember leave at the end of three full years the Councilmember will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Councilmember is also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Councilmember shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: For all officials elected after October 29, 1990 and taking office before January 1, 2010 who exercised the option to participate in retiree healthcare, the City will provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to the active Mayor and Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Councilmember has at least 15 years of service with the City and be at least the age of 55. This coverage is available at a cost of 3.25% of the Council member's gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree Healthcare Opt out: Councilmembers who receive Retirement Health Care insurance will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Councilmember provides written proof of coverage from another source. Any Councilmember who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Councilmember had alternate coverage. Department of Human Resources, 8"' Floor, 124 W. Michigan, Lansing MI 48933. Phone: 483-4014 EQUAL OPPORTUNITY EMPLOYER Revised 4/21/04: Retiree dental Revised 03/28/2007: Vision Revised 03/30/09: Phased elimination of benefits for Councilmembers Revised 03/22/11: For clarity Revised 4/02/13: To provide for three tier optional health insurance plans in compliance with PA 152 of 2011, and other clarifications Revised 3/5/2015: For technical corrections and clarifications Revised 3/17/2017 For Clerk and Mayor Compensation Revised 3/14/19 for Compensation Elected Officers Compensation Commission March 14, 2019 Council President Carol Wood Members of the Lansing City Council Tenth Floor City Hall Lansing, Michigan 48933 Dear President Wood and Councilmembers: The Elected Officers Compensation Commission (EOCC) met in committee during February and March 2019. The EOCC reviewed internal economic and financial documents and the current salary and benefit compensation packages of the Mayor, City Clerk, and members of the City Council. In addition, the EOCC compared various salary structures held by similar officers in comparable communities across Michigan and neighboring States. The following people attended the Commission meetings to answer questions and share their thoughts; Chris Swope, Samantha Harkins and Angela Bennett. In addition, the Commission presented to the City Council at their Committee of the Whole meeting on March 11, 2019. Our determination is based on the National and State economic climate, the current financial condition of the City, our review of executive and legislative responsibilities, and salary/benefit comparisons with other Michigan communities. The Commission considered the compensation history for all relevant positions going back as far as 1991, and considered the feedback from various executive officers and City staff. Our determination, which shall be implemented on January 1, 2019, makes changes to the compensation provided to the Council President. DETERMINATION Salaries The Commission determines that annual salaries, and respective effective dates, shall be as follows: January 1, 2019 January 1, 2020 January 1, 2021 Council President: $27,813.95 $28,370.23 $28,966.00 2 Fringe Benefits The Commission adopts by reference the Elected Officials summary of Fringe Benefits 2019. attached. The benefits are to be provided for the elected officials as set forth therein. However, it is intended that the elected officers who receive healthcare benefits, receive the same level and types of coverages as the City provides to its other employees. Therefore, if the State of Michigan legislates to alter the amounts a City may pay towards providing its employees' healthcare or otherwise limits such healthcare coverage, the legislation shall also affect the elected officials when it affects other City employees. Additionally, should the City decide to substitute insurance carriers or methods of providing coverage for economic advantage in place of the healthcare described in the attached summary, the City may do so, provided the current level of benefits are maintained or improved. Pursuant to previously approved fringe benefits for Council members, they may purchase health care at their own expense. Other Compensation It is acknowledged that none of the elected officers earn compensatory, vacation, or sick time, and upon termination, they are not entitled to any compensation for the same. TRANSMITTAL We, the members of the Elected Officers Compensation Commission, respectfully, adopt the collective determinations now transmitted. ELE TED OF RS CO ENSATION COMMISSION a��Jl� l i a Speaker i ian Dawson C�haa person Vice Chairperson CL Brian Huggler J Cassie Alley r Me ber \k Q Jeff McAlvey De'reK Melot Member Member City of Lansing ELECTED OFFICIALS Summary of Fringe Benefits 2019 Elected officials shall be eligible for City -provided health, dental, and life insurance coverage, and for participation in any deferred compensation program, as summarized below. Unless otherwise noted, this Summary of Fringe Benefits is operative on JULY 1, 2019. The last adopted recommended Summary of Fringe Benefits remains operative until that date. I. FOR THE MAYOR AND CITY CLERK ONLY: Health Insurance: The City of Lansing shall provide at the time of being sworn in or during an annual open enrollment period the following choice of medical insurances. Coverage will be effective the first (151) day of the month following the date the Mayor or Clerk, respectively, are sworn in. If an elected official chooses a non -base plan, he or she will be required to pay the difference between the base and non -base plan, in addition to any premium share. Elected officials selecting the base plan below will receive a $400 cash payment incentive for each plan year chosen. • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $20.00 co -pay for office visits. Prescription drug co -pays are $10/$20/$40 or $15/$25/$50 for Physician's Health Plan. This plan includes a $500 calendar year limit on preventative services, emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. The Base Plan is as provided above. If the Base Plan exceeds the state mandated hard cap amount, the elected official will pay the difference. If the elected official chooses to "buy up" to an optional plan (either Option 1 or Option 2) the elected official will be responsible for any cost differential between the Base Plan premium and the premium of the selected optional plan chosen. Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: The Mayor and City Clerk are eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. OW out: The Mayor and City Clerk will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Mayor or City Clerk provides written proof of coverage from another source. The Mayor or City Clerk who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Mayor or Clerk had alternate coverage. Dental Insurance: The City pays the full premium costs for the Dental plan provided by the City, coverage includes the Mayor and City Clerk and family members. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with an $1,500 maximum per person per contract year. Mayor and City Clerk and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,500.00 lifetime maximum per person. Coverage is effective the first day of the month 11 following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as the active Mayor and City Clerk. The Mayor and City Clerk shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Mayor or City Clerk respectively has at least fifteen (15) years of service with the City. AFLAC: The Mayor and City Clerk will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Life Insurance: The City pays the premium for a base $50,000 of group life and $50,000 Accidental Death and Dismemberment Insurance for the Mayor and City Clerk. Life insurance coverage for dependents is available for a reasonable cost to the Mayor and City Clerk, in accordance with the following schedule: Spouse $25,000 Unmarried child, age 14 days to 6 months $500 6 months to 23 years $ 2,000 Coverage is effective one (1) month and one (1) day following the commencement of service. Summaries are available in the Department of Human Resources. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Parkine/Transnortation: The Mayor and City Clerk shall have designated parking in the basement of City Hall. Vehicle: An automobile will be provided for the regular full time use of the Mayor. Deferred Comnensation.: The Mayor and City Clerk shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. The Mayor and City Clerk will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: In accordance with the City Charter, officials elected on or after October 1, 1990 shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Mayor or City Clerk's gross salary. The Plan is administered by Wells Fargo Bank. 2) The Mayor and City Clerk become eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self -direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the fund designated as the default fund. 3) The Mayor and City Clerk will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self -direction of their respective investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Mayor and City Clerk have the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Mayor and City Clerk will be vested for all City contributions. Should the Mayor and City Clerk leave at the end of three full years the elected official will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Mayor and City Clerk are also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Mayor and City Clerk shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: Optional: This is a one-time only option that must be made in writing within thirty (30) days after being officially sworn in or having elected to qualify on or before July 1, 2001. For all officials elected after October 29, 1990, the City agrees to provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to active Mayor and City Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Mayor and City Clerk have at least 15 years of service with the City and be at least 55 years of age. This coverage is available at a cost of 3.25% of the Mayor and City Clerk's respective gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree health benefits shall not include spouse or family coverage for a Mayor or City Clerk first elected after July 1, 2009. H. FOR CITY COUNCILMEMBERS: The fringe benefits designated in this Section II are for City Councilmembers. Health Insurance: Councilmembers shall have the option to purchase health care insurance, at their own expense. If chosen, coverage will be effective the first (1st) day of the month following the date the Councilmember is sworn in (commencement of service) or chosen during an annual open enrollment period. Current plans offered are: • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Oration 2 - includes a $15.00 co -pay for office visits. Prescription drug co -pays are $0/$15/$40. Emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. 0 Benefit summaries and rate sheets are available in the Department of Human Resources Vision Plan: Councilmembers will be eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Dental Insurance: Councilmembers shall have the option to purchase this dental insurance, at their own expense, on the same terms and at the same rate as other part-time employees of the City for whom such coverage is available, currently UAW. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with a $1,500 maximum per person per benefit year. Councilmembers and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,000.00 lifetime maximum per person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance:. Eligible retirees shall be covered by the same insurance as active Councilmembers. The Councilmember shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Councilmember has at least fifteen (15) years of service with the City. Councilmembers first taking office on or after January 1, 2010, shall not be eligible for this benefit. AFLAC: The Councilmembers will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Councilmembers first taking office on or after January 1, 2019 shall not be eligible for this benefit. Life Insurance: Councilmembers are not eligible for City provided group life and Accidental Death and Dismemberment Insurance. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Parkine/Transportation: Councilmembers shall have designated parking as provided by the Rules adopted by City Council. Deferred Compensation: Councilmembers shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. Councilmembers will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: Officials elected on or after October 1, 1990 and first taking office before January 1, 2010, shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Councilmembers' gross salary. The Plan is administered by Wells Fargo. 2) The Councilmember becomes eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the GIC (Guaranteed Investment Contract) Fund. 7 3) The Councilmember will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self direction of the Councilmember's investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Councilmember has the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Councilmember will be vested for all City contributions. Should the Councilmember leave at the end of three full years the Councilmember will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Councilmember is also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Councilmember shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: For all officials elected after October 29, 1990 and taking office before January 1, 2010 who exercised the option to participate in retiree healthcare, the City will provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to the active Mayor and Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Councilmember has at least 15 years of service with the City and be at least the age of 55. This coverage is available at a cost of 3.25% of the Council member's gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree Healthcare Ont out: Councilmembers who receive Retirement Health Care insurance will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Councilmember provides written proof of coverage from another source. Any Councilmember who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Councilmember had alternate coverage. Department of Human Resources, 8"' Floor, 124 W. Michigan, Lansing MI 48933. Phone: 483-4014 EQUAL OPPORTUNITY EMPLOYER Revised 4/21/04: Retiree dental Revised 03/28/2007: Vision Revised 03/30/09: Phased elimination of benefits for Councilmembers Revised 03/22/11: For clarity Revised 4/02/13: To provide for three tier optional health insurance plans in compliance with PA 152 of 2011, and other clarifications Revised 3/5/2015: For technical corrections and clarifications Revised 3/17/2017 For Clerk and Mayor Compensation Revised 3/14/19 for Compensation Elected Officers Compensation Commission March 14, 2019 Council President Carol Wood Members of the Lansing City Council Tenth Floor City Hall Lansing, Michigan 48933 Dear President Wood and Councilmembers: The Elected Officers Compensation Commission (EOCC) met in committee during February and March 2019. The EOCC reviewed internal economic and financial documents and the current salary and benefit compensation packages of the Mayor, City Clerk, and members of the City Council. In addition, the EOCC compared various salary structures held by similar officers in comparable communities across Michigan and neighboring States. The following people attended the Commission meetings to answer questions and share their thoughts; Chris Swope, Samantha Harkins and Angela Bennett. In addition, the Commission presented to the City Council at their Committee of the Whole meeting on March 11, 2019. Our determination is based on the National and State economic climate, the current financial condition of the City, our review of executive and legislative responsibilities, and salary/benefit comparisons with other Michigan communities. The Commission considered the compensation history for all relevant positions going back as far as 1991, and considered the feedback from various executive officers and City staff. Our determination, which shall be implemented on January 1, 2019, makes changes to the compensation provided to the Council Vice President. DETERMINATION Salaries The Commission determines that annual salaries, and respective effective dates, shall be as follows: January 1. 2019 January 1, 2020 January 1.2021 Council Vice President: $26,247.85 $26,772.81 $27,335.04 AA Fringe Benefits The Commission adopts by reference the Elected Officials summary of Frinee Benefits 2019. attached. The benefits are to be provided for the elected officials as set forth therein. However, it is intended that the elected officers who receive healthcare benefits, receive the same level and types of coverages as the City provides to its other employees. Therefore, if the State of Michigan legislates to alter the amounts a City may pay towards providing its employees' healthcare or otherwise limits such healthcare coverage, the legislation shall also affect the elected officials when it affects other City employees. Additionally, should the City decide to substitute insurance carriers or methods of providing coverage for economic advantage in place of the healthcare described in the attached summary, the City may do so, provided the current level of benefits are maintained or improved. Pursuant to previously approved fringe benefits for Council members, they may purchase health care at their own expense. Other Compensation It is acknowledged that none of the elected officers earn compensatory, vacation, or sick time, and upon termination, they are not entitled to any compensation for the same. TRANSMITTAL We, the members of the Elected Officers Compensation Commission, respectfully, adopt the collective determinations now transmitted. AED OFFICERS COMPENSATION COMMISSION 0� Speakery Gillian Dawson erson Vice Chairperson Brian Huggler Member Jeff McAlvey Member Cassie Alley Me ber AAA, �t Derek Melot Member City of Lansing ELECTED OFFICIALS Summary of Fringe Benefits 2019 Elected officials shall be eligible for City -provided health, dental, and life insurance coverage, and for participation in any deferred compensation program, as summarized below. Unless otherwise noted, this Summary of Fringe Benefits is operative on DULY 1, 2019. The last adopted recommended Summary of Fringe Benefits remains operative until that date. I. FOR THE MAYOR AND CITY CLERK ONLY: Health Insurance: The City of Lansing shall provide at the time of being sworn in or during an annual open enrollment period the following choice of medical insurances. Coverage will be effective the first (1S1) day of the month following the date the Mayor or Clerk, respectively, are sworn in. If an elected official chooses a non -base plan, he or she will be required to pay the difference between the base and non -base plan, in addition to any premium share. Elected officials selecting the base plan below will receive a $400 cash payment incentive for each plan year chosen. • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $20.00 co -pay for office visits. Prescription drug co -pays are $10/$20/$40 or $15/$25/$50 for Physician's Health Plan. This plan includes a $500 calendar year limit on preventative services, emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. The Base Plan is as provided above. If the Base Plan exceeds the state mandated hard cap amount, the elected official will pay the difference. If the elected official chooses to "buy up" to an optional plan (either Option 1 or Option 2) the elected official will be responsible for any cost differential between the Base Plan premium and the premium of the selected optional plan chosen. Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: The Mayor and City Clerk are eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Opt out: The Mayor and City Clerk will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Mayor or City Clerk provides written proof of coverage from another source. The Mayor or City Clerk who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Mayor or Clerk had alternate coverage. Dental Insurance: The City pays the full premium costs for the Dental plan provided by the City, coverage includes the Mayor and City Clerk and family members. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with an $1,500 maximum per person per contract year. Mayor and City Clerk and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,500.00 lifetime maximum per person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance:. Eligible retirees shall be covered by the same insurance as the active Mayor and City Clerk. The Mayor and City Clerk shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Mayor or City Clerk respectively has at least fifteen (15) years of service with the City. AFLAC: The Mayor and City Clerk will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Life Insurance: The City pays the premium for a base $50,000 of group life and $50,000 Accidental Death and Dismemberment Insurance for the Mayor and City Clerk. Life insurance coverage for dependents is available for a reasonable cost to the Mayor and City Clerk, in accordance with the following schedule: Spouse $25,000 Unmarried child, age 14 days to 6 months $500 6 months to 23 years $ 2,000 Coverage is effective one (1) month and one (1) day following the commencement of service. Summaries are available in the Department of Human Resources. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. ParkinL,/Transaortation: The Mayor and City Clerk shall have designated parking in the basement of City Hall. Vehicle: An automobile will be provided for the regular full time use of the Mayor. Deferred Comaensation: The Mayor and City Clerk shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. The Mayor and City Clerk will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: In accordance with the City Charter, officials elected on or after October 1, 1990 shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Mayor or City Clerk's gross salary. The Plan is administered by Wells Fargo Bank. 2) The Mayor and City Clerk become eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self -direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the fund designated as the default fund. 3) The Mayor and City Clerk will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self -direction of their respective investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Mayor and City Clerk have the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Mayor and City Clerk will be vested for all City contributions. Should the Mayor and City Clerk leave at the end of three full years the elected official will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave monies in the plan and continue to be invested tax deferred. 6) The Mayor and City Clerk are also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Mayor and City Clerk shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: Optional: This is a one-time only option that must be made in writing within thirty (30) days after being officially sworn in or having elected to qualify on or before July 1, 2001. For all officials elected after October 29, 1990, the City agrees to provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to active Mayor and City Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Mayor and City Clerk have at least 15 years of service with the City and be at least 55 years of age. This coverage is available at a cost of 3.25% of the Mayor and City Clerk's respective gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree health benefits shall not include spouse or family coverage for a Mayor or City Clerk first elected after July 1, 2009. II. FOR CITY COUNCILMEMBERS: The fringe benefits designated in this Section II are for City Councilmembers. Health Insurance: Councilmembers shall have the option to purchase health care insurance, at their own expense. If chosen, coverage will be effective the first (1st) day of the month following the date the Councilmember is sworn in (commencement of service) or chosen during an annual open enrollment period. Current plans offered are: • Base Plan - includes a $40.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $1000/single and $2000/ family in network deductible and 80% co-insurance. Emergency room services have a $250 co -pay and Urgent Care visits have a $60 co -pay. • Option 1 - includes a $30.00 co -pay for office visits. Prescription drug co -pays are $10/$40/$80. This plan includes a $500/single and $1000/ family in network deductible and 80% co-insurance. Emergency room services have a $150 co -pay and Urgent Care visits have a $50 co -pay. • Option 2 - includes a $15.00 co -pay for office visits. Prescription drug co -pays are $0/$15/$40. Emergency room services with a $50 co -pay, and a 50% co -pay for mental health and substance abuse services. R Benefit summaries and rate sheets are available in the Department of Human Resources. Vision Plan: Councilmembers will be eligible to purchase the Blue Cross Blue Shield VSP 12/12/12 Vision Plan. This plan provides vision exams, lenses and frames, and contact lenses with co -pays. Dental Insurance: Councilmembers shall have the option to purchase this dental insurance, at their own expense, on the same terms and at the same rate as other part-time employees of the City for whom such coverage is available, currently UAW. Coverage includes 100% coverage for cleaning; 50% coverage for treatment costs with a $1,500 maximum per person per benefit year. Councilmembers and dependents will also receive orthodontic coverage which provides fifty percent (50%) of treatment costs with a $3,000.00 lifetime maximum per person. Coverage is effective the first day of the month following thirty calendar days of service. Booklets and summaries are available in the Department of Human Resources. Retiree Dental Insurance: Eligible retirees shall be covered by the same insurance as active Councilmembers. The Councilmember shall become eligible for retiree dental insurance beginning at the date of termination of employment with the City, or at age fifty-five (55), whichever is later; provided the Councilmember has at least fifteen (15) years of service with the City. Councilmembers first taking office on or after January 1, 2010, shall not be eligible for this benefit. AFLAC: The Councilmembers will have the opportunity to pay for medical insurance premiums, unreimbursed medical expenses, and dependent care costs with pretax dollars through AFLAC. AFLAC also offers supplemental insurances that may be purchased on a pretax basis through payroll deduction. The maximum annual benefit for AFLAC medical insurance premiums and unreimbursed maximum medical expenses shall be the sum permitted by the Internal Revenue Code. The maximum benefit for AFLAC dependent care costs shall be the sum permitted by the Internal Revenue Code. Councilmembers first taking office on or after January 1, 2019 shall not be eligible for this benefit. Life Insurance: Councilmembers are not eligible for City provided group life and Accidental Death and Dismemberment Insurance. Vacation: No accrued time for sick leave, vacation, or personal time shall exist or be required. Part ing/Transvortation: Councilmembers shall have designated parking as provided by the Rules adopted by City Council. Deferred Compensation: Councilmembers shall be eligible to participate in the City's deferred compensation 457 plans as may be offered by the City. Currently those plans include Voya and T. Rowe Price. Councilmembers will be able to contribute up to the maximum allowed by the IRS annually through payroll deduction. Summaries are available in the Department of Human Resources. Defined Contribution Retirement Svstem: Officials elected on or after October 1, 1990 and first taking office before January 1, 2010, shall belong to the City of Lansing Defined Contribution Money Purchase Pension Plan. The Plan provides for: 1) A City contribution totaling 6% of the Councilmembers' gross salary. The Plan is administered by Wells Fargo. 2) The Councilmember becomes eligible for City contributions following six (6) months of service and must be enrolled in the Plan prior to completion of six (6) months of service in order to self direct the investment options of their retirement account. Failure to enroll prior to completion of six (6) months of service shall result in the City transferring monies into the Plan which shall default to the GIC (Guaranteed Investment Contract) Fund. 7 3) The Councilmember will be notified by the Department of Human Resources of the next quarterly enrollment session in order to receive their enrollment packet to facilitate timely enrollment and self direction of the Councilmember's investment decisions. Enrollment is initiated following the quarterly enrollment session. 4) The Councilmember has the option of contributing up to five percent (5%) of their compensation each Plan Year, subject to certain limits imposed by law. 5) At the end of three full years of service the Councilmember will be vested for all City contributions. Should the Councilmember leave at the end of three full years the Councilmember will have the following options: - Lump sum payment subject to applicable taxes; - Rollover monies into another tax deferred investment option; or - Leave mohies in the plan and continue to be invested tax deferred. 6) The Councilmember is also eligible for a City paid long-term disability policy which is administered by the selected vendor following the completion of six (6) months of service. The Councilmember shall receive information pertaining to the long-term disability policy at the quarterly enrollment session. Retirement Health Care: For all officials elected after October 29, 1990 and taking office before January 1, 2010 who exercised the option to participate in retiree healthcare, the City will provide retirement health care coverage up to 100% of the premium for the Base Plan health care coverage provided to the active Mayor and Clerk. Retirement health coverage shall begin at the date of termination of employment with the City, provided the Councilmember has at least 15 years of service with the City and be at least the age of 55. This coverage is available at a cost of 3.25% of the Council member's gross pay. This coverage shall be the same insurance coverage provided to the active Mayor and Clerk. Retirees shall convert to complementary coverage at their Medicare eligibility date. Retiree Healthcare Oat out: Councilmembers who receive Retirement Health Care insurance will be allowed to opt out of the City's health care plan annually, during the City's open enrollment period provided the Councilmember provides written proof of coverage from another source. Any Councilmember who opts out of the City's health care plan will be eligible to receive $1,800 in any year in which they receive coverage from another source. In addition, such payments will be made twice a year, by separate check, following the period of time the Councilmember had alternate coverage. Department of Human Resources, 8°i Floor, 124 W. Michigan, Lansing MI 48933. Phone: 483-4014 EQUAL OPPORTUNITY EMPLOYER Revised 4/21/04: Retiree dental Revised 03/28/2007: Vision Revised 03/30/09: Phased elimination of benefits for Councilmembers Revised 03/22/11: For clarity Revised 4/02/13: To provide for three tier optional health insurance plans in compliance with PA 152 of 2011, and other clarifications Revised 3/5/2015: For technical corrections and clarifications Revised 3/17/2017 For Clerk and Mayor Compensation Revised 3/14/19 for Compensation Ri