Committee on Ways and Means

AGENDA Committee on Ways and Means Friday, September 11, 2020 @ 8:30 a.m. https://us02web.zoom.us/j/82165699608; ID: 821 6569 9608; Dial In: (312) 626 6799 email comments prior to the meeting to sherrie.boak@lansingmi.gov Councilmember Wood, Chair Councilmember Spadafore, Vice Chair Council Member Jackson, Member 1. Call to Order 2. Approval of Minutes  August 28 , 2020 3. Public Comment on Agenda Items 4. Discussion/Action: A.) DISCUSSION- Fiscal Year 2021/2022 Budget Priorities 5. Other 6. Adjourn With Executive Order 2020-4, Governor Whitmer declared a statewide State of Emergency due to the spread of the novel coronavirus (COVID-19). To mitigate the spread of COVID-19 and to provide essential protections to vulnerable Michiganders and this State’s health care system and other critical infrastructure, it is crucial that all Michiganders take steps to-limit in-person contact, particularly in the context of large groups. Therefore, the above meetings will be conducted via audio/video conference. The meetings are being held electronically in accordance with the Open Meetings Act in an effort to protect the health and safety of the public. Members of the public wishing to participate in the meeting may do so by logging into or calling into the meetings using the website or phone number above, and meeting ID provided. Michigan Executive Order 2020-154 provides temporary authorization of remote participation in public meetings and hearings. Persons with disabilities who need an accommodation to fully participate in these meetings should contact the City Council Office at 517-483-4177 (TTY 711) 24 hour notice may be needed for certain accommodations. An attempt will be made to grant all reasonable accommodation requests.  DRAFT MINUTES Committee on Ways and Means Special Meeting Friday, August 28, 2020 @ 8:30 a.m. Via Zoom: https://us02web.zoom.us/j/84070360390; Meeting ID: 840 7036 0390; Dial In: (312) 626 6799 CALL TO ORDER The meeting was called to order at 8:31 a.m. Members Present via audio/video Council Member Carol Wood, Chair Council Member Peter Spadafore, Vice Chairperson Council Member Brian T Jackson, Member- unexcused OTHERS PRESENT Sherrie Boak, City Council Office Manager Kris Klein, LEDC Robert Widigan, Finance Director Jake Brower, Budget Director Jim Smiertka, City Attorney Judy Kehler, Chief Strategy Officer Brian McGrain, EDP Director Minutes MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE MINUTES FROM AUGUST 3, 2020 AS PRESENTED. MOTION CARRIED 2-0. Public Comment No public present at this time. Discussion/Action RESOLUTION – Grant Acceptance; Lansing Economic Development Corporation grant for Economic Recovery Resource Developer Position Mr. Klein was present with no ZOOM reception, so Mr. McGrain spoke on the subject. Mr. McGrain noted that they realized in the last months they have not able to go after grant funds to assist with COVID funding, and therefore with this grant they can pursue funding opportunities. Some funds might come to EDP but they will be funding for the City, and they will be searing large resources. The LEDC Board has approved the $100,000 for 12 months, and it could be a firm or individual. The have initiated the RFP. Mr. Klein joined the meeting and added that the position would have the core work plan development and work in conjunction with the City, pursue funding  DRAFT opportunities, collaborate with the City and private non-profits, organizations and businesses. They will also pursue match making funding with those organizations. Council Member Wood asked about expenses, and Mr. McGrain stated the personnel costs will be the major costs, and they are not interested in extending it if it is not working. Council Member Wood asked if the funds were State funds or LEDC funds. Mr. McGrain noted they were funds from the EDC through the City. The EDC has funds available for business financing and general funds and utilizing those funds. Council Member Wood asked if they would need those $100,000 funds for the parking bonds. Mr. McGrain stated he was not sure if there are funds with the EDC for the parking bonds, but that might be a discussion later. They are looking at these funds for a giant impact for the community, and they hope to have a firm that could devote someone’s time as a senior level personnel with already established contacts and hit the ground running. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION FOR THE GRANT ACCEPTANCE OF THE LEDC GRANT FOR ECONOMIC RECOVERY RESOURCE DEVELOPER POSITION. ROLL CALL VOTE, MOTION CARRIED 2-0. Mr. Smiertka asked Council Member Spadafore if Council would want a presentation Monday night at Council. Council Member Spadafore asked Council Member Wood if she felt she had enough information to summarize, she confirmed however also asked Mr. McGrain and Mr. Klein to attend to answer any questions. Council Member Wood then asked Mr. McGrain to forward the RFP to the Council Office Manager to forward onto the Committee. RESOLUTION – Grant Acceptance; Michigan Department of Treasury First Responder Hazard Pay Premiums Program; Hazard Pay for Law Enforcement Officers, Firefighters, Emergency Medical Technicians, Paramedics and Correction Officers- COVID Related Mr. Widigan reminded the Committee that they had applied in July 2020, and the Department of Treasury has not yet released the funds, however MML thinks it will be shortly. The only cost to the City match is FICA and Medicare, approximately $30,000. Council Member Wood asked if it would affect their retirement. Mr. Brower stated he would look into it, but it is taxable income and should be a fairly small amount. Council Member Spadafore asked if it is similar to a bonus, is a bonus affected by FAC, and Council Member Wood confirmed, and Mr. Smiertka suggested it might be part of the collective bargaining agreement. Council Member Wood asked if this goes back to March and Mr. Widigan confirmed it is the entire time frame. He added that he wanted to make the Committee aware the even though the funds have not been released yet by the State, they are being advised that once the funds are released they have to release them by 9/30/2020. Council Member Wood asked if this would be for employees who have retired since the COVID started, and Mr. Brower stated he believe they would because they were employees when the application was filed and they had to apply for a specific group and any active employees at the time. MOTION BY COUNCIL MEMBER SPADAFORE TO APPROVE THE RESOLUTION FOR THE GRANT ACCEPTANCE FOR THE DEPT. OF TREASURY FIRST RESPONDER HAZARD PAY PREMIUMS PRGRAM. ROLL CALL VOTE, MOTION CARRIED 2-0. Council Member Wood asked Mr. Widigan and Mr. Bower to look into any impact on retirement and report back before Monday’s meeting. DISCUSSION- Fiscal Year 2021/2022 Budget Priorities Council Member Wood noted to the Committee, that based on discussions from other Committees, those Committees are delaying discussions until after the 8/31/2020 Committee of the Whole meeting to get guidance.  DRAFT Other Council Member Wood asked Ms. Kehler and Mr. Widigan to look into what has been spent on outside counsel. Ms. Kehler and Mr. Widigan confirmed they will start working on that. Mr. Smiertka noted they no longer use Gallagher Bassett as the 3rd party because they changed insurance companies to Municipal Risk Managements. Council Member Wood asked what the potential is for having enough revenue to pay bonds for this year. Mr. Widigan stated at this time they have been working with finance, treasury and CSO on the cash flow summary. They are confident there are revenues to pay the bond. They are looking at a 20% reduction in income tax, and at this time the State is giving 101% in revenue sharing. Mr. Brower added that they are in the process of working on financial audits, and will have a better picture on where things stand when those are done. Council Member Spadafore asked Mr. Kehler, Mr. Widigan and Mr. Brower to estimate what the impact on the income tax will the effect of people working from home during COVID. Ms. Kehler stated she will work with the new Treasurer on assessing the Delta Twp., East Lansing and other areas. Mr. Widigan stated a conservative assumption is that 20% of the income taxes are coming from non-residents. Council Member Wood also asked Ms. Kehler what the impact will be if the State reduces leases due to staff working from home. Ms. Kehler stated they might not see that impact for 12-18 months. ADJOURN Adjourned at 9:06 a.m. Submitted by, Sherrie Boak, Council Office Manager Lansing City Council Approved by the Committee on________________  Draft – August 31, 2020 BY THE COMMITTEE OF THE WHOLE RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANSING WHEREAS, the Charter of the City of Lansing requires the Council to adopt an annual statement of Budget Policies and Priorities serving to guide the Administration in developing and presenting the Fiscal Year 2021–2022 Budget; and WHEREAS, the City Council established the following Mission; The City of Lansing’s mission is to ensure quality of life by: I. Promoting a vibrant, safe, healthy and inclusive community that provides opportunity for personal and economic growth for residents, businesses and visitors, II. Securing short- and long-term financial stability through prudent management of city resources, III. Providing reliable, efficient and quality services that are responsive to the needs of residents and businesses, IV. Adopting sustainable practices that protect and enhance our cultural, natural and historical resources, V. Facilitating regional collaboration and connecting communities; and WHEREAS, the standing committees of the City Council have met to evaluate the budget and recommend an annual statement of budget policies and priorities to guide the Administration in developing and presenting the Fiscal Year 2021–2022 budget. NOW, THEREFORE BE IT RESOLVED, that the Lansing City Council has established the following as its Fiscal Year 2021–2022 Budget Policies and Priorities and requests that the Administration review them and encourages that they, to the extent practical, be included in the Administration’s budget presented due to the City Council by the fourth Monday in March 2021. BE IT FURTHER RESOLVED, the Committee of the Whole has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the Committee on Development and Planning has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) -1-  Draft – August 31, 2020 BE IT FURTHER RESOLVED, the Committee on Equity, Diversity, and Inclusion has established the following priorities: 3. Item with proposed cost (if a cost is estimable) 4. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the Committee on Intergovernmental Relations has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the Committee on Personnel has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the Committee on Public Safety has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the Committee on Public Service has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the Committee on Ways and Means has established the following priorities: 1. Item with proposed cost (if a cost is estimable) 2. Item with proposed cost (if a cost is estimable) BE IT FURTHER RESOLVED, the City Council would like to continue its commitment, if funding is available, to:  Maintain and improve the City’s infrastructure;  Preserve and ensure clean, safe, well-maintained housing and neighborhoods;  Provide comprehensive and affordable recreational programs and youth and family services;  Explore alternatives for improved efficiency in service and delivery. -2-