JOINT COUNTY SERVICES/FINANCE COMMITTEE MEETING

Approved 12/6/06

JOINT COUNTY SERVICES/FINANCE COMMITTEE MEETING

November 14, 2006

Minutes

County Services Committee

Members Present: Andy Schor, Debbie DeLeon, Dianne Holman, Dale Copedge, Mike Severino, Don Vickers and Board Chairperson Victor Celentino

Members Absent: None

Finance Committee

Members Present: Marc Thomas, Curtis Hertel, Mark Grebner, Lisa Dedden, Tina Weatherwax-Grant, Steve Dougan and Board Chairperson Victor Celentino

Others Present: Ed Dore, Bob Moore, Peter Cohl, Richard McNulty, Jerry Ambrose and others

Chairperson Schor called the County Services Committee to order and Chairperson Thomas called the Finance Committee to order at 7:03 p.m. in the Board of Commissioners Room, Third Floor, Ingham County Courthouse, Mason.

Additions to the Agenda

1. Substitute Resolution

Limited Public Comment

Ms. Klusack asked the Committee when the County would begin collecting the millage dollars. Comm. Hertel stated the millage funds will be collected in January. Ms. Klusack expressed her concern regarding the employees and the unions. She then asked that all residents pay the same fee to enter the Zoo.

Mr. Ambrose stated there has been discussion of levying the millage. The City appreciates the efforts of all involved in assuring the passage of the Zoo Millage. Mr. Ambrose also expressed his appreciation for County staff and the County Attorney regarding the development of the lease. An agreement will be reached between the City and the County in a timely manner.

(Comm. Copedge arrived at 7:07 p.m.)

1. Resolution to Levy the Potter Park Zoo Millage

County Services Committee:

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. BAHAR-COOK, TO APPROVE THE SUBSTITUTE RESOLUTION TO LEVY THE POTTER PARK ZOO MILLAGE.

Comm. Vickers requested clarification regarding the THEREFORE BE IT RESOLVED paragraph in the Resolution. Mr. Dore explained that Resolution #06-218 was adopted in August 2006.

Chairperson Schor distributed copies of the Substitute Resolution to the Committees.

Comm. Thomas requested an update regarding the negotiations. Mr. Dore explained there are long-term implications regarding the collective bargaining agreement and health benefits. Mr. Moore stated the Ingham County Parks and Recreation Commission (Parks) have concerns regarding working conditions at Potter Park/Zoo, the direction to hold the City employees harmless and the City’s recommendation to include the City’s work rules in the proposed Agreement. Parks supports County Draft Three of the proposed Agreement. Mr. Moore stated Parks has recommended the County stay with its original recommendation.

Comm. Hertel stated the City, the County and the UAW are making efforts to resolve the work rules issue. The UAW has agreed to negotiate the rules. The County is not accepting the City’s work rules in full.

Mr. McNulty recommended the Committees enter into a closed session if they wish to discuss the November 9 and November 14, 2006 County Attorney opinions.

MOVED BY COMM. SEVERINO, SUPPORTED BY COMM. NOLAN, TO ENTER INTO A CLOSED SESSION FOR THE PURPOSE OF DISCUSSING THE NOVEMBER 9 AND NOVEMBER 14, 2006 COUNTY ATTORNEY OPINIONS.

Comm. Grebner suggested the Committees not enter into a closed session to discuss the legal opinions. This is not the time to discuss the opinions.

Comm. Severino withdrew his motion to enter into a closed session.

Comm. Nolan withdrew her support of said motion.

Mr. McNulty explained there are two primary issues to be resolved. Those issues are retiree health benefits and the work rules. The County Controller and the City Attorney continue to work to resolve these issues. Progress is being made on these issues. The goals remain the same. Mr. McNulty explained one of the goals, which pertains to retiree health benefits, is to ensure the County’s liability is fixed and its liabilities are not extended beyond the millage period. In regard to the goal regarding the work rules issue, the goals are to avoid the alter ego status and the liability which goes with alter ego and to address the operational concerns of the Parks Board.

The County Attorneys’ office has had discussions with the City Attorney as late as this afternoon regarding this issue. It appears the County and the City may be able to move toward a middle ground regarding the work rules issue. Mr. McNulty stated he believes both parties are moving in the right direction.

Chairperson Schor requested that the County Services and the Finance Committees receive regular updates regarding the progress of the negotiations with the City.

Comm. Nolan requested clarification regarding the term “alter ego status.” Mr. Cohl explained that being deemed an “alter ego” would result in the County assuming the existent collective bargaining agreements of the City for the duration of the agreements’ term. The parties would not be legally obligated to bargain during the term of the existent agreements. Mr. Cohl further explained the County would assume the City’s grievances, unfair labor practices and discrimination claims.

Mr. Cohl explained another primary issue facing the County is health care. The County’s goal is to ensure the County’s employees will receive health care and be held harmless. However, when a previous City employee is no longer employed by the County, the liability will revert back to the City. Current figures show that five employees could possibly cost the County $1.5 million. The County must ensure that it is protected in this matter. This protection is built into the proposal, draft three.

Comm. Severino requested clarification regarding the proposed amendment. He stated the County must maintain its bargaining position with the City. Chairperson Schor explained the amendment makes our position stronger. It indicates the millage funds will not be spent until an Agreement with the City has been reached and has been executed by all parties.

Comm. Severino stated the County made a promise to not levy the millage funds unless an agreement was reached and signed by November 14, 2006. The County is now changing its position on this matter. Comm. Severino stated the County should act in good faith by following what it has already put in writing.

Comm. Dougan asked if the Board of Commissioners will vote on the lease. Mr. Dore stated the lease would have to be approved by the Board. Comm. Dougan stated there are a number of issues that need to be resolved. He expressed his hope that a Board Leadership meeting will be scheduled in January.

Comm. Schafer stated there appears to be a lack of a quorum this evening on the part of the City. Mr. Dore stated one City representative is not present due to a family illness.

(Comm. Dedden arrived at 8:26 p.m.)

Comm. Holman requested clarification regarding the time limit for levying the millage. Mr. Dore explained that, due to tax laws, the County can only levy the millage on the winter tax bills. If this does not happen, the County will have to wait until next year to levy the millage.

Comm. Grebner stated the County should not feel constrained by any time limits. It should take as much time as needed to resolve each issue. The County does not realize its bargaining position. The City is asking the County for help. Comm. Grebner stated if the County maintains its position, the City will find a quorum to agree to our position. It is not the County’s problem if the City does not agree to our position. Comm. Grebner urged the Commissioners to understand that the County holds all the cards. The City Zoo employees will be hired into the County’s system. The County will not abide by the City’s work rules.

Mr. Dore agreed the County must do the right thing for its employees and its residents. The parties have come a long way in the negotiations. He encouraged the Board of Commissioners to draw a straight line regarding retiree health benefits and the work rules. The voters approved the millage to fund the Zoo. We are all proud of our County parks’ system. Mr. Dore respectfully requested the Board of Commissioners to allow the County Attorney and staff to bring a final agreement to the table.

Comm. Severino stated he will not vote in favor of the motion as a member of the County Services Committee. He stated he will wait to hear Comm. Grebner’s proposed amendments to determine how he will vote on the Board floor.

Chairperson Schor stated the residents have spoken. The Commissioners should vote to assess the millage. The County has several months to negotiate the lease. Chairperson Schor expressed his hope that the County Services Committee will vote in favor of the motion to amend and the motion.

MOTION CARRIED with Comms. Holman and Severino voting NO.

Finance Committee:

MOVED BY COMM. GREBNER, SUPPORTED BY COMM. HERTEL, TO APPROVE THE RESOLUTION TO LEVY THE POTTER PARK ZOO MILLAGE.

Comm. Grebner stated he did not understand Mr. Dore’s suggestion regarding health benefits. Mr. Dore explained the position that retirees and employees eligible for retirement will remain in the City’s plan. The County would contribute to the health care plan per our language in Draft 3. In relation to pensions, the City employees’ retirement will move into the MERS system. The employees have agreed to this position. Comm. Grebner suggested the City be given clear notice of the County’s position on this matter.

MOVED BY COMM. GREBNER, SUPPPORTED BY COMM. DOUGAN, TO AMEND THE RESOLUTION BY ADDING THE FOLLOWING LANGUAGE:

BE IT FURTHER RESOLVED, THAT THE POSITION OF THE INGHAM COUNTY BOARD OF COMMISSIONERS REGARDING RETIREE HEALTH CARE IS THAT IT BE LIMITED TO THE RATE OF PAYMENT FOR OTHER COUNTY EMPLOYEES.

Comm. Hertel stated he agrees with Comm. Grebner’s motion in principle; however, the City has come far from their original position. Comm. Grebner stated the City employees will be paid the same rate as our County retirees.

Chairperson Thomas stated he would support putting the amendment language in the Resolution if it is agreeable to the County and the City. Comm. Hertel stated the City has not agreed to this position as of this date.

MOTION TO AMEND CARRIED with Comm. Hertel voting NO.

MOVED BY COMM. GREBNER, SUPPORTED BY COMM. DOUGAN, TO AMEND THE RESOLUTION TO ADD THE FOLLOWING LANGUAGE:

BE IT FURTHER RESOLVED, THE INGHAM COUNTY BOARD OF COMMISSIONERS DECLARES ITS INTENTION TO INCORPORATE NEWLY HIRED EMPLOYEES, HIRED AFTER JULY 2, 2007, IN THE COUNTY’S COMPENSATION PLAN.

Comm. Dougan suggested the date in the motion be changed to January 1, 2007. Comm. Grebner accepted this as a friendly amendment to his proposed amendment.

Mr. McNulty suggested the date be changed to July 1, 2007. This is the date the lease will be effective. Comm. Dougan stated he would accept this date; however, he does not want the City to aggressively fill vacant positions between January and July 2007.

Comm. Hertel stated the County needs to allow sufficient time to negotiate with the union employees. Comm. Grebner stated the City park employees will be paid the same rate as a similar class of County Park employees.

Mr. Moore stated the Ingham County Parks employees do have a collective bargaining agreement which covers existing employees. The same agreement also contains a clause that employees not in the union will be covered by the collective bargaining agreement.

Chairperson Thomas asked what rate the City Zoo employees will be paid when they become Ingham County employees. Mr. Hailey explained that if the current Zoo collective bargaining agreement is assumed, the City employee pay rates would remain at the current levels until a new agreement is reached. Mr. Hailey further stated he sees potential problems with Comm. Grebner’s proposed amendment.

Comm. Nolan stated the County does not want to see the City add several new employees to the Zoo between January and July 2007. Any employees hired between January and July 1 should automatically be transferred into the County’s plan. Comm. Grebner stated the County should not be stuck with high costs which were established by the City of Lansing. Comm. Hertel stated the City employees signed a collective bargaining agreement. They have not signed any agreements with the County. He further stated he would not be comfortable telling the City employees their collective bargaining agreement is void. Comm. Grebner stated people not yet hired will receive the benefits of the agreement that was signed by the City.

MOTION TO AMEND FAILED with Comms. Grebner and Dougan voting YES.

MOVED BY COMM. GREBNER, SUPPORTED BY COMM. DOUGAN, TO AMEND THE RESOLUTION TO ADD THE FOLLOWING LANGUAGE:

BE IT FURTHER RESOLVED, THE INGHAM COUNTY BOARD OF COMMISSIONERS DECLARES ITS INTENTION TO IMPLEMENT WORK RULES AT THE ZOO WHICH ARE TYPICAL OF THOSE WHICH GOVERN OTHER EMPLOYEES IN THE INGHAM COUNTY PARKS DEPARTMENT AS OF JULY 2, 2007.

Comm. Grebner stated it should be clear that importing the City’s work rules will create problems with County employees. Chairperson Thomas clarified that the intent of Comm. Grebner’s motion to amend is to implement work rules at the Zoo. Comm. Grebner agreed that this would be the intent of the County entering negotiations with the City.

FRIENDLY AMENDMENT (PER COMM. WEATHERWAX-GRANT) TO REPLACE “INTENTION TO IMPLEMENT” WITH “INTENTION TO BARGAIN FOR”

Comm. Grebner explained the County would implement its standard work rules at the Zoo. Chairperson Thomas stated he would support Comm. Grebner’s motion to amend.

Comm. Grebner withdrew his previous motion to amend. Comm. Dougan withdrew his support of the same motion to amend.

MOVED BY COMM. GREBNER, SUPPORTED BY COMM. DOUGAN, TO AMEND THE RESOLUTION BY ADDING THE FOLLOWING LANGUAGE:

BE IT FURTHER RESOLVED, THAT THE BOARD OF COMMISSIONERS DECLARES ITS INTENTION NOT TO ASSUME THOSE PORTIONS OF THE CITY’S COLLECTIVE BARGAINING AGREEMENT REGARDING WORK RULES.

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. WEATHERWAX-GRANT, TO AMEND THE MOTION ABOVE TO ADD THE FOLLOWING LANGAUGE:

RATHER, THE INTENTION OF THE COUNTY IS TO ENTER INTO A MEMORANDUM OF UNDERSTANDING REGARDING OBJECTIVE WORK RULES WITH UAW 2256.

Comm. Hertel stated his proposed amendment would allow the Controller and those on the negotiation team to work with the union. The union has shown great strides in working on this matter. Comm. Hertel stated he believes his proposed amendment is a fair compromise.

FRIENDLY (PER COMM. WEATHERWAX-GRANT) TO ADD “BY JUNE 30, 2007.”

Mr. Dore suggested the County and the City negotiate the work rules issue. Comm. Grebner stated the County should not instruct the UAW. The County’s intention should be to reach an agreement with the UAW. Mr. Cohl stated it should be made clear the County will not assume the City’s work rules if an agreement is not reached with the union. Comm. Hertel indicated his disagreement with this statement.

Chairperson Thomas asked for clarification regarding the motion to amend the motion to amend. Comm. Weatherwax-Grant stated the language in the amendment would clarify the County’s intention. The County will not assume those portions of the City’s collective bargaining agreement regarding work rules. It is the intent of the motion to amend to instruct staff to negotiate a memorandum of understanding regarding objective work rules.

Comm. Hertel stated neither party will benefit if a lease is not signed. Mr. Dore stated the City and the County believe veto power is a potential problem.

Comm. Grebner suggested the County instruct its representatives to attempt to reach an understanding with the City regarding the work rules.

COMM. HERTEL MOTION TO AMEND: CARRIED UNANIMOUSLY.

COMM. GREBNER’S MOTION TO AMEND CARRIED UNANIMOUSLY.

MOVED BY COMM. DOUGAN, SUPPORTED BY COMM. GREBNER, TO AMEND THE RESOLUTION BY ADDING THE FOLLOWING LANGUAGE:

BE IT FURTHER RESOLVED, THE INGHAM COUNTY BOARD OF COMMISSIONERS REQUESTS THE CITY OF LANSING TO VOLUNTARILY IMPLEMENT A HIRING FREEZE TO THE MAXIMUM LEVEL ALLOWED IN ITS COLLECTIVE BARGAINING AGREEMENT DURING NEGOTIATIONS.

Comm. Hertel indicated his non-support of the above motion to amend. The Zoo currently needs to fill a vacant maintenance position. Comm. Weatherwax-Grant stated she is confident that Mr. Ambrose will take this Committee’s intentions to his colleagues.

MOTION FAILED with Comms. Dougan and Grebner voting YES.

MOVED BY COMM. DOUGAN, SUPPORTED BY COMM. GREBNER, TO AMEND THE RESOLUTION TO ADD THE FOLLOWING LANGAUGE:

BE IT FURTHER RESOLVED, THE INGHAM COUNTY BOARD OF COMMISSIONERS ASKS THE CITY OF LANSING TO ATTEMPT TO REINTEGRATE ITS EMPLOYEES FOR AT LEAST A 12 MONTH PERIOD FOLLOWING THE APPROVAL OF THE LEASE.

Mr. Ambrose stated the City employees know their choices and they will have the opportunity to make their choice June 30, 2007.

MOTION FAILED with Comm. Dougan voting YES.

Comm. Dougan stated he is not clear regarding how the County will consider Lansing residents who live in Eaton County. He would like to see that issue addressed.

MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY.

Announcements: None

Public Comment: None

The meeting adjourned at approximately 8:30 p.m.

Respectfully submitted,

Debra Neff