AGENDA. ‘Committee of the Ways and Means Monday, February 8, 2010 @ 12:45 p.m. ‘Tenth Floor Conference Room ~ City Hall Councitmember Cro! Wood, Chie CCouncimember Ere Hew, Vice Chair CCouneiimamber Tine Houghion, Member L. Call To Order IL Roll Call IL. Approval of Minutes © Jamary 25, 2010 IV. Public Comment 'Y. Discussion/Action 1. Appointment of Tricia Spain to the Board of Review 2. Update on Department Audits from the Internal Auditor «St. Vincent de Paul Society of Lansing Audit ‘© Westminster Presbyterian Church Audit * American Red Cross 3. Update on the Parking System 4, Fiscal Year 2009 Golf Deficit, . Letter from IBEW Local Union 665 Regarding the Contract for Construction at the Lansing ‘Wastewater Treatment Plant VI. Receipt of Communications VIL AdjournVIL Pending Update on IRS New Roles on Tx Iorease Prevention & Reconciliation Act ‘Waste Management on Reoyling and Refuse Luer irom the Tri-County Reporal Panning Commision Submiting Copy ofits Audit Report for Fiscal Year 2008 [Notice fom the State of Michigan Department of Treasury Regaing Golf Fund DeficitRL 4Ab x From the 1/21/2010 Counc ‘Meeting Packet REFERRED TO THE com! : IMI" OFFICE OF THE MAYOR WAYS AND MEANS aND THE ON oh Foo, Gy Has INTERNAL AUDITOR 124 W, Michigan Avenue Lansing, Michigan 48833-1694 (617) 483-4141 (voice) (617) 489-4479 (TDD) (617) 488-6066 (Fax) Virg Bemero, Mayor Jamuary 19, 2010 Council President A”Lynne Robinson and City Council Members 10° Floor City Hall ‘Lansing, MI 48933 ‘Dear President Robinson and City Council Members: Therewith submit for your confirmation the appointment of Tricia Spain, 1225 Woodbine Avenue to an At-Large position on the Board of Review, for a term to expire June 30, 2012. ‘Your confirmation of this appointment is eppreciated. Sincerely, ces Virg Bernero Mayor "Equal Opportunity EmployerCity Of Lansing Internal Audit 48-4159 To: A’Lynne Robinson, Council President ‘Virg Bemnero, Mayor Chris Swope, City Clerk Joan Jackson Johnson, Director HRSC FROM: —_Ammold C. Yer, Intemal Auditor DATE: Snary 10, 2009 SUBJECT: St Vincont de Paul Society of Lansing Audit BACKGROUND INFORMATION ‘The Human Relations and Community Services Department (HRCS) contracted with St. Vincent de Paul Society of Lansing (SVDP) on July 20, 2009 for the contract period July1, 2009 through June 30, 2010 to perform the following duties, This contract is for $50,000 and according to the contract ths is for Operating expenditures Program Goals: ‘A. Prevent discontinuation of utility service for City of Lansing households facing utility shut-off B. Assist with the reinstatement of utility service for City of Lansing households where service has been Shut-off C. Assist with housing expenses incurred by Lansing households that seek to retain there dwellings ‘or need assistance relocating because of housing displacement. Program Objectives: A. Providing screening for 200 different Lansing households 1. The program will target Lansing households of five (5) members or more that are at risks of being displaced from their dwellings because of utility service termination. 2. The utility payment assistance provided by the Contractor (SVDP) will average $250.00 per househola. 3. Households will be eligible to receive assistance once during the term of this Contract. Provide utility service payments for 130 different ligible Lansing households Collaborate with other agencies. Provide assistance with security depositor first month's rent expenses and/or other related needs (uch as furnishings or household items) presented by 10 Lansing households who must maintain residency in their current dwellings. Households will be eligible to receive assistance once during the term of this Contract yop (On August 26, 2009 the above contract was amended and added $25,000 for the following additional services. The contract period remained the same. According to the budget justification for the contracted project the original $50,000 and this amended amount of $25,000 are for Operating Expenses. A. Direct utility assistance; Housing relocation assistance with security deposits utility deposits; necessary household good items, as determined by staff $50,000. B. Mobile Food Pantry Basic needs assistance $25,000. svdpsocietyaudit.docAUDIT OBJECTIVES ‘The objectives in Auditing the St. Vincent de Paul Society of Lansing contract withthe City of Lansing (ARCS) were to evaluate: ‘+ The compliance of expenditures to the objectives of the contract. # Totestthe out come for July1, 2009 to October 30, 2009 to the program objectives. CONCLUSIONS According to the program objective (A. 1.) for uility assistance, states that the program will target Lansing ‘Households of 5 or more. For the first 4 months 58% of the households were 5 or more, 35% were of 4 and 7% were 3 or less, The total number of households receiving utility assistance was 60. According to program objective (A. 2.) for utility assistance, states that the average assistance of $250 per household. No household received more than $250, ‘According to program objective (A. 3.) for utility assistance, states that households will receive assistance ‘once during the term ofthis contract. There were 5 last names that were reported twice and they all hed dierent addresses, thus it appears that there were no duplicate payments tothe same household, According to program objective (B.) for utility assistance, states that the target is to provide payments for 130 households. To date a total of 60 have received payments, According to program objective (C.) for utility assistance, states that there isto be collaboration with other agencies, According to the reports ths is being done According to program objective (D.) for rent assistance, states that the target is 10 Lansing households. To date there have been 10 households that have received assistance. ‘The Mobile Food Pantry Basic needs assistance amendment to the original contract is vague as to the description of services to be provided. Other expenses recorded on the reports from SVDP show the following totals expended as follows: {88,000 ($4,000 each) giftfood cards from Wal-Mart and Meijer’s. $1,401.69 for Food Pantry Workers, {$700.66 for car repairs. $1,340.36 for clotaing. $176.76 truck rental for relocation, $250 for Burlington Coat Factory Gift Card, SUMMARY. It appears that the goals for the Utility assistance and the Rent assistance are on track and are meeting the stated program objectives. ‘The lack of stated goals and program objectives for the Mobile Food Panty Basie needs assistance program makes it dificult to test for compliance. svdpsocietyaudit doc‘The $8,000 in GiftFood cards ($2,000) per month if continued at this rate would total $24,000 forthe contract period. This would leave $1,000 ofthe $25,000 as amended for this program availabe for other cost. Currently other expenditures are $1,401.69 for Food Pantry workers, the $1,340.36 for clothing and the $250 for Burlington Coat Factory would then exceed the total $25,000 or the expense for these cards would have to be reduced in order to stay in compliance with the contract amendment when taking into account these other expenditures that have been allowed in this program. ‘According to Meijer's these cards can be noted on the back of the card that they are not good for aleohol or cigarette purchases, According to Wal-Mart they cannot limit what purchases the cards may be used for. [As the budget justification for the $25,000 granted for the Mobile Food Panty Basic needs assistance program was approved for and allocated for operational expenses. Combine this with the lack of stated ‘goals I would find that the following expenditures are qot in compliance with the contracts and these ‘expenditures should be reimbursed to the City. ‘The $1,401.69 for Food Pantry Workers. ‘The $700.66 for Car Repairs The $1,340.36 for Clothes ‘The $250 for Burlington Coat Factory svdpsocietyandit docCity Of Lansing Internal Audit 483-4159 TO: ‘Lynne Robinson, Council President Virg Bernero, Mayor Chris Swope, City Clerk Joan Jackson Johnson, Director HRSC. FROM: Arnold C. Yerxa, Internal Auditor DATE: January 11, 2010 SUBJECT: Westminster Presbyterian Church Audit BACKGROUND IFNORMATION ‘The Human Relations and Community Services Department (HRCS) contracted with the Westminster Presbyterian church (WPC) on July 20, 2009 for the contract Period July 1, 2009 through June 30, 2010 to perform certain services and activities. The total contract is for $5,000. Program Goal: Assist low-income individuals and families to obtain personal and household items that are not ‘covered by assistance programs through the Michigan Department of Human Services. Program Objectives: A. Operate a personnel Needs Closet for five hundred (500 unduplicated) low-income clients within the City of Lansing, which shall include: 1. Personal grooming and hygiene supplies. 2. Cleaning Kits (pails, mops, brooms and supplies) for clients, who have secured a dwelling. AUDIT OBJECTIVES ‘The objectives in auditing the WPC contract with the City of Lansing (HRCS) were to evaluate: ‘= The compliance of expenditures to the objectives of the contract. ‘© Totest the out come for July 1, 2009 to November 30, 2009. CONCLUSIONS ‘The expenditures by month have been July 2009 $305.45, August 2009, $489.89, September 2009 $1,384.80, October 2009 $1,783.24, and November 2009 $611.00, for a total of $4,574.38 and a remaining balance of $425.62. ‘The agency is required to submit quarterly reports to detail the number of clients served to help test the out come af the program. I have reviewed the first quarterly report forthe period of July 2009 through September 2009. As the second quarterly report is not due until January 20, 2010 it is not yet available to review, According to the first quarterly report there were 422 Lansing residents served. SUMMARY ‘This contract for grant monies from the City is based on a reimbursement basis, and a review of the ‘monthly reports submitted by WPC reflects that purchases are within the scope of the program objectives. erpresby.docBased on the number of clients to be served (500) and that in the first quarter 422 were served it appears that the target number will be reached. ‘westministerpresby.docTo: FROM: DATE: SUBJECT: City Of Lansing Internal Audit 185.4159 A’Lynne Robinson, Council President Virg Bernero, Mayor Chris Swope, City Clerk Joan Jackson Johnson, Director HRSC Amol C. Yerxa, Internal Auditor January 11, 2010 American Red Cross BACKGROUND IFNORMATION ‘The Human Relations and Community Services Department (HRCS) contracted with the American Red Cross, Mid-Michigan Chapter, Mid-Michigan Food Bank on July 21, 2009 for the contract Period July 1, 2009 through June 30, 2010 to perform certain services and activities. The total contract is for $30,000. Program Goal: Provide food and personal items to the food pantres and soup kitchens in the City of Lansing, ‘hich are members of the Mid-Michigan Food Bank Program Objectives: A B. ‘Acquire, vie donations from local retail stores, 1,750,000 pounds of fresh and frozen produce and meat, boxed and canned foods, dairy products, baked goods and personal hygiene items. Pick up donations in-store, safely transport, and inspect all donated product, Produce and meat items will be transported via reftigerated trucking. All foods shall be sorted and warehoused at Mid-Michigan Food Bank. Timely and efficient delivery, through the Mi-Michigan Food Bank, 1,750,000 pounds of surplus, bulk foods, dairy products and personal hygiene grooming items to agencies located in the City of Lansing that are members ofthe product distribution network assisting residents in need Measurable Outcome: Pursuant to “2A thru 2C” above, surplus product, bulk foods, dairy products and personal hygiene grooming items will be provide, at no cost, to fourteen thousand City of Lansing residents in need, as documented by reports generated by Contractor that are received from member organizations in the product distribution network. Contract Budget: ‘According to the Total Contract Budget the cost category for the grant from the City is in the Operating Expenses category. However in the Budget Justification for Contracted Project, the Cost Category is in the Personnel category. The description in the Budget Justification it states “Costs associated with the provision of the mobile food pantries to Lansing residents; $6,000 towards other expenses, including the need for refrigerated trucking at mobile food panties, as requested and approved by the City of Lansing”. AUDIT OBJECTIVES ‘The objectives in auditing the American Red Cross contract with the City of Lansing (HRCS) were to evaluate: americanredeross.doc‘+ The compliance of expenditures to the objectives of the contract. + To test the out come for July 1, 2009 to November 30, 2009. CONCLUSIONS [Atthis point the required reports have not been submitted to HRCS and they have placed a hold on additional payments, this grant isa lump sum payment with payments made in two payments during the fiscal year, SUMMARY ‘The required reports should be obtained and based on these report 2 decision should be made and supported in writing as to why the funding should be required to continue. americanredeross.docCity Of Lansing Internal Audit 482-4159 To: Carol Wood, Chair Ways and Means FROM: ‘Amnold C. Yerxa, Internal Auditor DATE: November 10, 2009 SUBJECT: Fund ‘The first schedule recaps the Parking Fund, 585 Fund, revenues by month for the months of July, August and September of FY 2009 and FY 2010. ‘My calculations show for FY 2009 that an average of $611,750 would be needed to meet the projected ‘Budget for the operations of the parking system. In FY 2009 July was below the monthly average but August and September were above the average. ‘My calculations show for FY 2010 that an average of $604,042 would be needed to meet the projected ‘budget for the operetions of the parking system. In each month there has not been enough revenue to meet the average. There has only been $1,193,151 in total operating revenue and to meet the monthly average of {$1,812,126 forthe first three months the parking system is $618,975 short. If the first three months history continues then the parking system would be $2,519,900 short in revenue as compared to the budget projection. ‘The above caloulation does not included the 513 Fund, (Building Authority), as the change in Net Assets does not come as a result in operating income for the parking system. ‘The second schedule recaps the Parking Fund Balance. My projection shows for FY 2010 thatthe beginning fund balance would be $12,813,993. During the FY 2010 budget process $6,000,000 of the fund balance was earmarked for the new eastside parking ramp. Thus the fund balance would be $6,813,993, before any adjustment is made for operating gain or loss for FY 2010. Summary: Based on the above potential loss of revenue, unless the expenditures are reduced in the same ratio as revenues the parking system fund balance will not last more than 3 years. (82,500,000 times 3 years). Update 11/12/09 In FY 2009 the Budget projected a need of $2,409,950 from fund balance to cover operating expenditures. However the net actual revenues and actual expenditures resulted in an excess of revenues by $1,238,765 and the net non-operating revenues and expenditures resulted in a net loss of $288,269 for a net increase in Assets of $994,442, Included jn the non-operating revenue for FY 09 is a gain on sale of capital assets in the amount of 81,493,405, ‘The Debit Service in the parking fund appears to be covered by the revenue in the Building Authority Fund. parkingrevi0.doeIn FY 2010 the budget projected an excess of operating revenues over operating expenditures in the amount of $1,213,806 which would result in no additional fund balance needed to be used for operating the parking fund. However based on the first quarter results, the annual it would appear that the Net Operating revenues less Net Operating expenditures will result in a decrease in net assets of $919,724. ‘The estimated Debt Service appears to be covered by the Building Fund. parkingrev10.doe,Parking Fund - Fund Balance Recap Prepared 11/10/09 “The Parking Fund in the aucit report combines the 613 Fund, Bulding Authority and the 685 Fund, Municipal Parking System. ‘The combined unrestricted Fund Balance as of July 1, 2009 was $12,001,142. FY 09 Fund Fund Combined 519 585 Total Revenues 3271267 10,787,714 14,058,984 Expenditures (2876248) _ (0,560,282 (13,246,130) Nt increase in Assets (405.581) 4,218,482 e185 ‘Based on the fact that the changes in the Restricted Assets are not known at this time, ‘The Best case scenario would be that all of the Net Change would relate tothe Unrestricted Assets. The following refiects this projacted scenario. Projected Parking Net Assets - Combined Funds Balance Beginning FY 2008 Invested in Capital Assets, net related Assets 5,686,270 Restricted for debt retirement 127,101 Restricted for capital projects 326,888 Unrestricted 12,001,142 Unrestricted Assets Beginning FY 2010 12,001,142 Plus change in Net Assets, 812,851 12,813,988 Loss projected for new Eastside Parking Ramp (6,000,000) Projected Net Assets available for Future 6,813,993 miscwks08 xs(z1z'96z'e) eav'ous'z = ear 18ST Tease : 00'ste" Sve'L9e'e (Les'6zz) (vzz'616) gog'etz'b zeo'ezyT eee C095 VES ED'S tp'e6l'L vos'zll'y 009'8b2'L Jayen ISsi4 enjoy uo paseg O11 ISH poyooforg (eag'ze9'L) evy'oue'z. opr 1957 eave ooo'ste" gve'toe'e sou'eez'L (os6'6ov'z) rT aaa) 056 0S76 61 ESL 000'L¥E"L asuedxs, ye6png penuanoy pordopy remoy anuanay jeuonppe payalorg somypuodso (euon Pp (e807) ouoou payors seumypuodes Sueodo sonuanoy Bunesedo 0102 1284 [eos onuonsy Jeuonppe peoaloig pepeau enuenai jeuonippY (e807) auwoouy perselosg seumypuedxa Sunerado sonuonoy Buneiedo 6007 1894 129814 pun $89 G0/e1/L4 paseders pun4 wayskg BuredParking System Fund Recap of Major Maintenance accounts re on ‘Adopted Adjusted Encumbered ‘Budget Budget Expenses pee Parking Maint SSAPOIOOGE 1.954.095 960.919 Le some mo ae Seoul pane) eee none ee 'N Capitol 451,518 17,700 Bee ons oe fee te Aad ee a Aa oo eo Boe cone Peon cea nee ee Nona a em pee care roairvae 1 eel ere ‘The Increases in FY 09 are from Cary Forwards from FY 08. rmiscwks08.xls Balance 893,122 1443 ‘880,500 41,024,680 433,818 163,000 2,798,563 9.535 (12,723) 280,800 (673,700) 96,300 233,000 43,212sr eosywosI (08) esi'oe szr'sne UZ ece'e0e 7 a zor've eo leovzes esz'eyt = za1'9 sol'erh a us0'e) ab (ess) oF 16s'28 990'¥6 900'r6 st vt et a 69'6s © —z00'S0L_ 20'S zo0's04 uo e0-deg BOILEIOT 1 s20b ASTD 6OROWZ vey ezeze — sze'see © G80" ost've ——sze'uee. povep seutua saz Tere coeTs wets Le zee'se = S108 szt'08 oF eus'ezi eus'ezt 6 a ZL 9 9 e0e'ze e9e'ze y 60-Bny 0122101 Ane Lb tor'ves ea" zre'es Lec'ves ais'y weoeae oreoe —ean'ese «98 0 eve's poe've, ele'o2, errs e (@60'r) 360" z see'eoz ops'oaz = gae'Boz SEW b sone ‘enuanoy oN wpe1y yasq enusroy ¥N. wad, 920 sobed BOFBLILE JO BOTPTIGO Io 8801 AL TD se Ob Ad 19 002 dog Bn Aine anvonoy popicoay waishs Bupyedspegosymosiu isvors — gee'zes OBZ DaTTy— eeo'sy R'E ele'es = 61066 (Ob'S usizez —wal'vee = S027 goss © zaso 68 eol'4. — ge0'es reo enueney oNParking System Funé Recap of Major Maintenance accounts Prepared 11/13/09 Actual pius Adopted Adjusted Encumbered Budget Budget_-—Expenses FY 2008 Parking Maint 1,554,035 980,913 sGrand 14,166 12,723 Capitol 615,575 35,075 NGrand 1,899,140 874,460 NGapto! 451,518 47,700 Townsend 163,000 - Total FY 2009 4.697434 1,800,871 Fy 2010 I As Posted 11/12/08 Parking Maint 28,000 18,485, Grand - 12,723 8 Capitol 816,000 25,200 NGrand 125,000 698,700 NCapitot 416,000 19,700 ‘Townsend 233,000 - Total FY 2010 1,318,000 1,274,768 ‘The Increases in FY 09 are from Carry Forwards from FY 08. smiscwks08.xls Balance 593,122 1,443 580,500 1,024,680, 433,818 163,000 2,796,563 9.595 (12,723) 290,800 (673,700) 98,300 233,000 43,212| . Ki 24 | aiasie0m) ben | : STATS OF MICHIGAN JENNIFER M. GRANHOLM: DEPARTMENT OF Ti ROBERT J. KLEINE ‘GOVERNOR LANSING ‘STATE TREASURER ALL CORRESPONDENCE SHOULD REFER TO STATE ID NUMBER DEFICIT ELIMINATION. PLAN NOTIFICATION State ID Number 33-2020 January 4, 2010 | Mr. Jemy Ambrose, Financial Director + _ Pom be 41-10 Gnnes MesingPatet | City of Lansing REFERRED TO THE COMMITTEE ON - 124 West Michigan Avenue WAYS AND MEANS AND THE Lansing, Michigan 48933-1694 | INTERNAL AUDITOR Dear Mz. Ambrose: ‘We have received an audit report from your local’ ‘asiff Which indicates a deficit balance in one ot more funds as follows: FUND _. AMOUNT SOURCE OF INFORMATION | Golf $55,382 Audited Financial Statements 6/30/09, p. 96 ‘According to MCL 141.921 and Attomey General Opinion No. 6154, if a local unit of government ends its fiscal year in a deficit condition, the local unit of govemumient shall foumulate and file a finencial plan with the Department of Treasury within 90 days after the beginning of the fiscal year to correct the deficit The local unit of government shall file the financial plan with the Department of Treasury for evaluation and certification to ensure the | correction of the deficit condition. Upon certification by the Department of Treasury, the local ‘unit shall institute the plan. ‘Your deficit elimination plan is due within 30 days from the date of this letter. If the deficit elimination plan is not filed within that 30-day time period, we will recomrnend that 25% of your State-Shered Revenue be withheld pursuant to MCL 141.921@). The plan shopld identify exactly how the deficit is to be eliminated. . The following ate acceptable evidence to support a plan: 1. Certified copies of board/council resolutions (describing fimds and amounts) approving additional appropriations sufficient to eliminate the deficit and a copy of the journal entry ‘that shows that the transfer has been made ora trial balance.‘Mr. Jerry Ambrose Page 2 January 4, 2010 2, Projected budget approved by the legislative body as evidenced by a certified resolution itemizing yearly revenues by source, expenditures/expenses by activity, and changes in the fimd balance/retained earings through the year of the defici’s eventual elimination. There js a five-year limit for an approved plan; the plan must be amended if the deficit increases or the plen is not otherwise followed. For tax increment finance or. downtown development authorities, the ordinance or plan approving their existence is acceptable if it shows the flow of revenues and the priority of expenditures that would satisfy a deficit elimination plan for these funds as indicated in #2 above. 4, For drain or other special assessment-type funds that have deficits, which are not “covered” om the balance sheet by a long-term receivable and deferred revenue, a letter from the Drain Commissioner itemizing assessment levies which could not be recognized for the audited fiscal year due to’ generally accepted accounting principles, will suffice as a deficit elimination plan. . After receiving your plan, we will notify you in writing if additional information is needed or ‘that your plan has been certified, If you have any questions or concems, please do not hesitate to contact mie at (517) 373-0660. Our mailing adéress is Michigan Department of Treasury, Local ‘Audit and Finance Division, P.O. Box 30728, Lansing, MI 48909-8228. Sinterely, A — Gene Aitt, CFE, CGFM. Auditing Specialist Local Audit and Finance Division c:-buxis Swope, Cle ‘Amy Kraus, TreasurerRVI i OFFICE OF THE MAYOR ‘ath Floor, City Hall 124 W. Michigan Avenue Lensing, Michigan 48833-1694 (517) 483-4141 (voice) From the 1/25/10 Cound Meeting Packet (617) 483-4479 (TDD) (617) 483-6066 (Fax) REFERRED TO THE COMMITTEE ON WAYS AND MEANS AND THE INTERNAL AUDITOR Virg Bernero, Mayor TO: FROM: DATE: RE: City Council President A’Lynne Robinson and Council Members Mayor Virg Bemero January 20, 2010 FY 2009 Golf Deficit/FY 2009 Budget Carryforwards ‘The attached correspondence is forwarded for your review and appropriate action. VBith Attachment “Equal Opportunity Employer”‘Ving Bornero, Mayor City of Lansing Finance Department Interoffice Communication oe Jerry Ambrose, Chief of Staff ee) DATE: January 13, 2010 SUBJECT: FY 2009 Golf Deficit/F¥ 2009 Budget Camyforwards Attached, for Council approval, please find a budget transfer to address the $55,382 unrestricted net ‘asset deficit the Golf Fund incurred as of June 30, 2009, As discussed, it is imperative that action is talcen as soon as possible, so as to be able to respond to the Department of Treasury by February 4. Failure to respond by February 4 can result in the withholding of 25% of our State revenue sharing payments. ‘Also aftached for Council approval is «list of recommended budgetary carryforwards from the FY 2009 budget to the FY 2010 budget for each find. The timing of approval for the carryfowards is not neatly 4s urgent as the Golf Fund transfer; however, timely action is requested, as it affects available funding for departmental spending. =~BY THE COMMITTEE OF THE WHOLE RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANSING WHEREAS, the City must annually file a deficit reduction plan with the State for any City fund ‘ending a fiscal year with a deficit, WHEREAS, failure to have the plan accepted by the State results in withholding of City State Revenue Sharing payments and the denial of our Debt Qualification Statement needed for State approval for bonding for the City, Board of Water and Light, Tax Increment Financing Authority, Brownfield Authority, and Building Authority; ‘WHEREAS, the Golf find had a deficit of $55,382 for the 2009 fiscal year; ‘WHEREAS, the City has received a letter from the State requiring action to eliminate the deficit no later than February 4, 2010; NOW, THEREFORE, BE IT RESOLVED that the following FY 2009/2010 budget amendment bbe approved: General Fund Expenditures: Parks Operating 8(55,382) General Fund Transfer to the Golf Fund 55,382 Golf Fund Revenues: ‘Transfer fiom the General Fund 55,382 Golf Fund Retained Barings 55,382 Approved for placement on the City Council agenda: Brigham Smith, City Attorney Date:Twi a INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS Local Union 665 December 10, 2009 City of Lansing Chad Ganble, Public Service Detar AGENDA 7" Floor City Hall 124 W. Michigan Ave Lansing, MI 48933 RE: Beonomie Impact of Stimalus Money on Lansing Chad Gamble, Ithas come to my attention thet the contract for-construction at the Lansing Wastewater ‘Treatment Plant on Sunset Avenue has been awarded to Christman Constructors. Christman Constructors appears intent on using an electrical contractor from outside the Lansing ‘metropolitan statistical region, Feyenzylsra, to perform the electrical work on the job. Denyse Ferguson, president and CEO of the Lensing Economie Area Partnership (LEAP), recently stated that, “Spending $100 at a local business keeps about $73 in the local economy. ‘Spending the same amount at a non-locally owned business keeps just $43 in the local economy.” “Accordingly, the bid from Feyensylstra wes submitted for the amount of $669,500, equating to an ceonomic loss for the Lansing region of more than $200,000, The next higher bid was from a “Lansing ares contractor in the amount of $762, 900, The use of the local contractor in this instance, equates toa net gain. Investing the extra to hire local would generate atleast a 200% ‘e{um on investment forthe local economy. According to LEAP it would keep $556,917 circulating in the Lansing regional economy. encourage the admingetration anid the City of Lansing to intervene in this instance behalf of struggling Lansing area workers and consumers, Lansing area small businesses who need cvstomers, and the Lansing regional economy. It would be a travesty for th to use tax dollars end stimulus moneys to displace local workers and fe If outside workers and contractors are used to fill the job opportunites on this project, local working families suffer, Lansing’s tax base suffers, potential profits fopsmall business will be diminished, and the positive economic impact multiplier is reduced ooh fraction, 2, Sy Mpg, 2, Ro 5205 S. Pennsylvania Ave, + Lansing, MI 48911 517-393-5530 + Fax: 517-383-3521 + o-Mail: Ibewlocal665Qacd.net SBChad Gamble Page 2 of 2 December 10, 2009 | ‘Non-locel contractors on the job are likely o purchase their supplies, legal council, end even accounting services in their home communities, forfeiting Lansing’s economic growth i opportunity to anther community, Not only are their workers likely burning up gesoline driving i from another region to work here and spending littl or no money here, but the management teams for these companies may never spend a dime in Lansing. Profits from the contract will be spent somewhere else instead of being used to grow jobs in Lansing Several electrical contractors from the Lansing region (at least three) bid on the electrical contract, i.e. the bidding environment amongst local contractors creating jobs for local workers was competitive In this instance, the awarding of ob opportunities created by working men and women and businesses fom the Lansing area to workers and businesses from well outside the Lansing region is a distributive injustice end negligeit stewardship ofthe social and economic needs of those Lansing area residents who create these jobs. As the customer representative, your office has within it’s authority, the ability to avoid this ‘occasion of injustice. | am hopeful that this information helps you in your efforts to spend the scarce taxpayer resources responsibly and maximize benefit for Lansing. Lansing ares IBEW members are eager to get to work building projects right here in the City of Lansing. 11ook forward to assisting you in any way I can in creating jobs for Lansing area workers. We certainly need them, and our local economy needs them. ook forward to working to resolve this concer. Sincesely, a Michaels +2 President | ce: Lansing City Council President Derrick Quinney Lansing City Council Vice President A’Lynne Robinson Lansing Finance Director Jerry Ambrose ‘Mayor Virg Berero 5205 S. Pennsylvania Ave, » Lansing, MI 48914 517-393-5530 + Fax: 517-393-3521 : Ibewlocal665@acd.net : ~ “Sitio