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Home My WebLink About2009-03-18 - Revised REVISED MINUTES OF THE TWENTY-FIFTH MEETING OF THE LOCAL OFFICERS COMPENSATION COMMISSION OF THE CITY OF LIVONIA On March 18, 2009, the above meeting was held at the Livonia City Hall, 33000 Civic Center Drive, Livonia, Michigan, and was called to order by Scott Grace, the Chairperson, at 7:35 p.m. Roll was called with the following result: MEMBERS PRESENT: Maureen Simari Ronald Reinke John Murphy Glen Long, Jr. Richard Hayward Scott Grace MEMBERS ABSENT: None OTHERS PRESENT: Jack Kirksey, Mayor Robert Biga, Director of Human Resources Dennis Wright, Treasurer Maureen Cosgrove, Assistant City Clerk On a motion by Long, seconded by Murphy, it was: #01-09 RESOLVED, that the minutes of the June 28, 2007, Local Officers Compensation Commission Meeting are hereby approved as submitted. A roll call vote was taken with the following result: AYES: Simari, Reinke, Murphy and Grace. NAYS: None. PRESENT: Hayward. On a motion by Reinke, seconded by Simari, and unanimously adopted, it was: #02-09 RESOLVED, that Scott Grace is elected to serve as Chairperson of the Local Officers Compensation Commission for the year 2009. A roll call vote was taken with the following result: AYES: Simari, Reinke, Murphy, Hayward and Grace. NAYS: None. Minutes of the Local Officers Compensation Commission Meeting of March 18, 2009 2 On a motion by Reinke, seconded by Hayward, and unanimously adopted, it was: #03-09 RESOLVED, that Maureen Simari is elected to serve as Vice Chairperson of the Local Officers Compensation Commission for the year 2009. A roll call vote was taken with the following result: AYES: Simari, Reinke, Murphy, Hayward and Grace. NAYS: None. Mayor Kirksey entered the meeting at 7:40 p.m. and was present to answer questions of the Commissioners. He distributed a letter dated March 19, 2009 regarding recommendations for 2010 and 2011 elected officials salaries. He feels the Treasurer position salary should be increased to begin closing the gap that exists between the City Clerk and the City Treasurer. He also stated that based on the economic situation, he would normally be recommending a decrease in salaries; however he is opposed to this direction since most elected officials (including himself) plan to volunteer for a decrease in their compensation. Department Heads and possibly other employees will likely participate in this voluntary effort. Mayor stated that he has had some employees commit voluntarily to contribute 5% of their income this year and 5% next year. We have had a balanced budget this year, however department budgets may be reduced from 2% to 5% and next year from 5% to 10%; returning that money to the General Fund. We have a range because each department has been impacted differently. In the last few years we have had selective hiring and taken off the hiring freeze saved $5 million and no layoffs. Our goal is to layoff hopefully no one by next year. The fiscal year begins December 1st, property values will catch up with taxes. Next year could be a financial catastrophe. He is trying to create revenue; there are some companies that are interested in coming here. He is trying to find ways to do business differently and not spend as much money. He is asking unions to follow lead started with elected officials and department heads and voluntarily give back. Working on how you can give back without having to pay money on the taxes that you give back. The effects of Social Security and retirement details are to be worked out. Mayor would like to see wage structure kept in tact and people to voluntarily give back. Mayor stated that he is contributing about $11,000 of his salary which is $105,000. The only exception to what he said is the making Treasurer position salary equal to the Clerk position salary. The problem originated from previous governments looking at people and not the positions. Mr. Wright has taken a proactive stand and gone out to talk to businesses about delinquent taxes and worked out payment plans. Our tax collection in the middle of the session are 95% because the Treasurer has gone out of the office to collect. Asking for support to increase his salary in increments for equal compensation with the Clerk salary. Minutes of the Local Officers Compensation Commission Meeting of March 18, 2009 3 Mayor stated that letters will be going out to Fire and Police Chief. Mayor stated that he is now Director of Public Safety. Salary for the Director of Public Safety was $155,000. Mayor Kirksey left the meeting at 8:05 p.m. Dennis Wright, City Treasurer, entered at 8:05 p.m. to answer questions of the Commissioners. He stated some of his achievements for the last year. His first budget was 11½% under; saving the City $60,000. Mr. Wright stated that biggest thing that he concentrated on was collecting old taxes. The first year which was concluded in December 2008, delinquent taxes collection (2001-2007) was up 23% or $290,000. He pegged certain companies that were going bankrupt or leaving the City and walked into auction on Levan, and threatened to shut them down until they wrote him a check for $70,000. We were one of the few that collected from LaShish Restaurant. Also collected from Greenwood, Finish Line, Livonia Mall and collected from 8 companies that he received forwarding addresses to. He knocked on doors to collect taxes. He also stated that some small business owners are afraid of government and he built trust with some of the gas station and party store owners. He talked to them about how they could pay their taxes, sometimes including payment plans. The total tax collection for 2008 was $1,200,664 and 2007 was $976,000. Mr. Wright left the meeting at 8:10 p.m. Robert Biga, Director of Human Resources entered at 8:10 p.m. to answer questions of the Commissioners. Commissioner Grace asked which officials received cars. Mr. Biga stated that the Mayor, Clerk and Treasurer have cars. Mr. Reinke asked when the City Treasurer received a car. Mr. Biga responded that the Treasurer received an old Intrepid car this year. Discussion continued with regards to other benefits such as health insurance and 401K plans. Mr. Biga left the meeting at 8:25 p.m. Mr. Glen Long, Jr. entered the meeting at 8:27 p.m. Pursuant to the request of Commissioner Grace, handouts consisting of a “2008 Wage & Salary Survey” compiled by the Michigan Municipal League containing salary information of surrounding member communities, a “Base Salary and Consumer Price Index from December 1985 to 2008” for the LPOA, LLSA, LFFU, AFSCME Local 1917 and AFSCME Local 192 Unions, as well as a spreadsheet prepared by the Civil Service Department titled “Salary History for Last Ten Years – Elected, Appointed and Department Heads” were passed out. Commissioner Grace thanked Derrick Washington and the Civil Service Department for the requested information. Some discussion took place amongst the Commissioners relative to these handouts. Minutes of the Local Officers Compensation Commission Meeting of March 18, 2009 4 On a motion by Hayward, seconded by Reinke, and unanimously adopted, it was: #04-09 RESOLVED, that due to the current economic state and the budget problems facing the City of Livonia, the Local Officers Compensation Commission hereby determines that the salary for the Office of the Mayor be frozen at its current level of $105,000, to be paid on a bi-weekly basis for the 2010 and 2011 calendar year. On a motion by Reinke, seconded by Long, it was: #05-09 RESOLVED, that due to the current economic state and the budget problems facing the City of Livonia, the Local Officers Compensation Commission hereby determines that the salary for the City Council be frozen at its current level of $16,600, to be paid on a bi-weekly basis for the 2010 and 2011 calendar year. On a motion by Murphy, seconded by Simari, and unanimously adopted, it was: #06-09 RESOLVED, that due to the current economic state and the budget problems facing the City of Livonia, the Local Officers Compensation Commission hereby determines that the salary for the City Council President be frozen at its current level of $17,800, to be paid on a bi-weekly basis for the 2010 and 2011 calendar year. On a motion by Long, seconded by Hayward, and unanimously adopted, it was: #07-09 RESOLVED, that due to the current economic state and the budget problems facing the City of Livonia, the Local Officers Compensation Commission hereby determines that the salary for the Office of the City Clerk be frozen at its current level of $74,000, to be paid on a bi-weekly basis for the 2010 and 2011 calendar year. On a motion by Murphy, seconded by Hayward, and unanimously adopted, it was: #08-09 RESOLVED, that the Local Officers Compensation Commission hereby determines that the salary for the Office of the City Treasurer shall be set at $68,800, to be paid on a bi-weekly basis, for the calendar year 2010; FURTHER, that the salary for the calendar year 2011 shall be set at $70,900, to be paid on a bi-weekly basis. Mr. Grace will make a request to Mr. Biga for a review and recommendation regarding all benefits of elected officials. This information will be forwarded to the Mayor’s Office and the Commission. A Special Meeting or Study Meeting may be called in the near future. Minutes of the Local Officers Compensation Commission Meeting of March 18, 2009 5 The next Regular meeting of the Local Officers Compensation Commission will be in 2011. On a motion by Long, seconded by Hayward, and unanimously adopted, the meeting was adjourned at 8:58 p.m. Scott Grace, Chairperson /mc