Budget Hearings - Law Department, Library, Board of Ethics

Detroit City Council
Libraries
Finance
Politics

Remote

Join meeting: https://cityofdetroit.zoom.us/j/85846903626

This assignment is for three budget hearings:
1:00 p.m. - Law Department
2:00 p.m. - Library
3:00 p.m. - Board of Ethics

Check the source website for additional information

Reporting

Edited and summarized by the Detroit - MI Documenters Team

Note-taking by Talia Gordon

Law Dept. budget looks lower because it doesn’t include Project Clean Slate or lawyers for ARPA-funded contracts; proposed increase for the library budget; proposed decrease for Ethics Board budget, already the lowest budget of all oversight agencies

Live reporting by Amelia Benavides-Colón

Law Dept. budget looks lower because it doesn’t include Project Clean Slate; proposed increase for the library budget; proposed decrease for Ethics Board budget

Amelia Benavides-Colón @benavides_colon
What’s up, Detroit!🌦️

I’ll be live-tweeting the Detroit City Council Budgets hearings today at 1 p.m. for #DETdocumenters

@media_outlier @BridgeDet313 @PlanetDetroit @freep @wdet @metrotimes @chalkbeatDET
@MichiganRadio @DetDocumenters @wxyzdetroit

09:25 AM Mar 17, 2023 CDT

Amelia Benavides-Colón @benavides_colon 2/88
Today’s plan:

Law Department - 1 p.m.
Library - 2 p.m.
Board of Ethics - 3 p.m.

Find the full agenda here: pub-detroitmi.escribemeetings.com/Meeting.aspx?I…
Amelia Benavides-Colón @benavides_colon 3/88
I'm joining the party late today as the official meeting kicked off at 10 a.m. and started with budget hearings for the Detroit Zoological Society and Detroit Employment Solutions

A public comment session also took place prior to me joining the Law Department hearing at 1 p.m.
Amelia Benavides-Colón @benavides_colon 4/88
The zoom room is open but the physical room is empty!

I'm guessing we are waiting for Councilmembers to return from a short recess.
Amelia Benavides-Colón @benavides_colon 5/88
Chairperson Fred Durhal called the meeting to order at 1:06 p.m. but technical difficulties are not letting us see the room.
Amelia Benavides-Colón @benavides_colon 6/88
All fixed! Councilmembers Mary Waters, James Tate and President Mary Sheffield are absent.

A quorum is present.
Amelia Benavides-Colón @benavides_colon 7/88
Here's the agenda for today's Law Department Budget Hearing: pub-detroitmi.escribemeetings.com/filestream.ash…
Amelia Benavides-Colón @benavides_colon 8/88
Corporate Counsel Conrad Mallett is in person along with three law department employees to answer questions about their FY2023-24 Budget.

According to the agenda, Council has eight major questions after conducting their analysis.
Amelia Benavides-Colón @benavides_colon 9/88
Councilmember Scott Benson asked why there is a budget reduction for 2024 compared to 2023, specifically a decrease of $4.2 million

Mallett said attorneys who work for the "Clean Slate" project have been moved to a non-department budget - which explains the decrease in budget
Amelia Benavides-Colón @benavides_colon 10/88
Don't worry though, this change will not impact any operations of the Clean Slate program - which works to expunge records from city residents

detroitmi.gov/departments/la…
Amelia Benavides-Colón @benavides_colon 11/88
Benson wants to know if the City is continuing to settle cases without taking them to trial after there was a rise in residents exploiting the city's settlements.

Mallett said he would be happy to return for a closed session to continue this discussion.
Amelia Benavides-Colón @benavides_colon 12/88
Mallett described the influx of settlements as a "plague on the city" for which his department is finding creative solutions for.
bridgedetroit.com/legal-settleme…
Amelia Benavides-Colón @benavides_colon 13/88
Benson is now asking what the dept plans to do to increase revenue.

Mallett said the current data management system has made it difficult for lawyers to clock their time, making it difficult for them to bill the department for the time they worked. A new system would fix this
Amelia Benavides-Colón @benavides_colon 14/88
Once the new system is in place, money will begin following in. Mallet said residents who are not responsible for the properties will be held accountable.
Amelia Benavides-Colón @benavides_colon 15/88
Councilmember Angela Whitfield-Calloway wants to know how many interns were hired to manage the 7,000 FOIA requests sent to the department in 2022.

Mallett said the interns were not hired due to changes leaving nobody in charge of managing that project.
Amelia Benavides-Colón @benavides_colon 16/88
There is the expectation to hire two interns for 2023 and a staff member has been chosen to lead that project, Mallett said.
Amelia Benavides-Colón @benavides_colon 17/88
Whitfield-Calloway wants to know the plan to hire outside council from Detroit-based small law firms, including minority and women law firms. She said a conversation took place around this nine years ago and enough time has passed with no answers.
Amelia Benavides-Colón @benavides_colon 18/88
Mallett said this is a new idea, and the department needs 60 days to consider it.
Amelia Benavides-Colón @benavides_colon 19/88
Councilmember Durhal wants to know what the rate is for billable hours and what that entails.

Mallett said it depends on the nature of the service being offered.

There is a lot of commotion and giggles going on in the background, I think a member spilled a drink.
Amelia Benavides-Colón @benavides_colon 20/88
The average rate is $150 an hour for litigation and it depends on the intensity of the time put in, Mallett said.
Amelia Benavides-Colón @benavides_colon 21/88
Durhal also commented on the high number of settlements the city has been paying. What conversations does the department have around risk management?

Mallett said the Law Dept. is not driving this conversation, but the Risk Management Team is and they are involved in those talks
Amelia Benavides-Colón @benavides_colon 22/88
Councilmember Latisha Johnson wants to know how the department is minimizing exposure in high-publicity cases.

Mallett said it all starts with the tone of dept. the leadership of the Fire and Police Departments, which has shifted given the new circumstances facing the city
Amelia Benavides-Colón @benavides_colon 23/88
Johnson asked her question again. How do you minimize exposure?

Mallett said the law dept. is taking a more firm attitude in some of these instances and "I'll leave it there"

Mallett offered to discuss this in greater detail in a future closed session. Johnson agreed.
Amelia Benavides-Colón @benavides_colon 24/88
Johnson asked what the dept. does to train city employees to prevent themselves from facing civil suits.

Mallett said this is not something his dept. has ever done but they will take the suggestion. "We would be glad to cooperate but I don't know that we could lead it."
Amelia Benavides-Colón @benavides_colon 25/88
Councilmember Gabriela Santiago-Romero asked if the Clean Slate program offers wrap-around services.

Mallett said the program is tied jointly with DESC to provide job training and Clean Slate has become a direct link to improving employment.
Amelia Benavides-Colón @benavides_colon 26/88
Santiago-Romero said she was unclear about the answer to Whitfield-Calloway's question. Are there conversations taking place about hiring more minority law firms?

Mallett said yes, but the dept. has not been in communication with any firms who assist with immigration services
Amelia Benavides-Colón @benavides_colon 27/88
Councilmember Coleman Young II wants to know how many cases are being brought against individuals for property owners not taking care of their properties.

Mallett said BSEED issues a ticket, which is then paid (or not), but after that point, there is no way to regulate... 1/2
Amelia Benavides-Colón @benavides_colon 28/88
if a tenant has moved into a home that is not up to compliance. We only find out after the fact. According to HRD, 75% of rental properties in Detroit are owned by a handful of property owners. 2/2
freep.com/story/news/loc…
Amelia Benavides-Colón @benavides_colon 29/88
Mallett said the department has a list of 25 landlords, who own large numbers of rental properties in the city, who they plan to pursue litigation against.
Amelia Benavides-Colón @benavides_colon 30/88
Councilmember Young is asking if the city tracks the number of people who are wrongfully convicted.

Mallett said the tracking system is the lawsuits that are filed.
Amelia Benavides-Colón @benavides_colon 31/88
Young asked for an update on Right to Counsel, which ensures any Detroiter facing eviction and earning below 200% of the federal poverty threshold gets a lawyer.
cbsnews.com/detroit/news/d…

Mallett said they are currently determining how many citizens they will be able to help.
Amelia Benavides-Colón @benavides_colon 32/88
This concludes the Law Department budget hearing.

Next up... we are talking about Libraries, check out the agenda here:
pub-detroitmi.escribemeetings.com/filestream.ash…
Amelia Benavides-Colón @benavides_colon 33/88
Executive Director of Detroit Public Library Jo Anne G. Mondowney & Chief Financial Officer Antonio Brown is in person to go over the Library budget for FY2023-2024. According to the agenda it looks like Council has about 25 questions about the report.
Amelia Benavides-Colón @benavides_colon 34/88
Brown said DPL has reopened many of its branches except for Conley and Monteithm due to facility issues. Services hours have returned to 40 hours per week.
Amelia Benavides-Colón @benavides_colon 35/88
Total FY 2023 Budgeted Expenditure is $33,565,470 compared to $34,908,632 for FY 2024. The major bump is going to salaries and benefits.
Amelia Benavides-Colón @benavides_colon 36/88
Brown said DPL is facing some staffing issues. The FY2024 budget has 325 positions. As of Oct. 2022, the Library has a total of 210 active employees and 115 vacant positions.
Amelia Benavides-Colón @benavides_colon 37/88
Councilmember Durhal said his general concern lies with $30 million in revenue generated each year. In the years between 2019 and 2021, when DPL was closed due to COVID, and that revenue was still coming in, how were those expenses mitigated?
Amelia Benavides-Colón @benavides_colon 38/88
Brown said during the COVID shutdown, DPL partnered with the National Sanitation Foundation to determine best practices for staying open. Six branch locations were determined as safe to remain open and a mobile library was sent to the closed locations. detourdetroiter.com/detroit-mobile…
Amelia Benavides-Colón @benavides_colon 39/88
Brown said expenditures were reduced because of the decrease in employees on payroll. Many employees were placed on furlough and money left over was put back into the general fund.
Amelia Benavides-Colón @benavides_colon 40/88
Durhal pointed out how in FY2022 the Library's revenue exceeded expenditures by $6.6 million. What were the fund balances during that time, for 2020 and 2021, Durhal asked?

Brown said the balance of the fund has increased by $12 million from 2020 to 2022.
Amelia Benavides-Colón @benavides_colon 41/88
Durhal wants to know the plan for the current fund balance, given the current challenges facing DPL.

bridgedetroit.com/etroit-public-…
Amelia Benavides-Colón @benavides_colon 42/88
Brown said DPL has installed several HVAC systems, three new roofs, dealt with flooding at the Main Branch, and has a plan to replace the Main Library elevator once parts come in.

"We are using our fund balance for one-time capital expenditures," Brown said.
Amelia Benavides-Colón @benavides_colon 43/88
Councilmember Johnson said the Montieth Branch served as a community hub for members of the Jefferson Chalmers community. From her viewpoint it looked like the major repairs needed are around ADA accommodations. Are there plans to re-open any branches in FY 2023-24?
Amelia Benavides-Colón @benavides_colon 44/88
Brown said Chase and Hubbard are getting HVAC systems installed.

Conley, my childhood library 😉, is getting a new basement floor and needs some other repairs before it can be reopened.

Brown said the biggest obstacle is having staff to work at those branches when they re-open.
Amelia Benavides-Colón @benavides_colon 45/88
From a management standpoint, Skillman cannot be reopened due to the construction going on around that site, Brown said.

Montieth has structural damage, including needing a new roof, for which no capital funds have been identified.
Amelia Benavides-Colón @benavides_colon 46/88
Johnson said when she toured Monteith she was told the roof was replaced recently.

Johnson made a motion to put the DPL budget into executive session. Motion passed.
Amelia Benavides-Colón @benavides_colon 47/88
Councilmember Santiago-Romero asked for the timeline on Conley.

Brown said DPL has collected bids to repair the structural damage to the basement. Once a bid is chosen, a timeline will be in place.
Amelia Benavides-Colón @benavides_colon 48/88
Santiago-Romero said she doesn't see any fundraising in the revenue. Is this something that has been discussed?

Brown said internal discussions have taken place but nothing has been moved forward. Santiago-Romero offered her assistance in fundraising.
Amelia Benavides-Colón @benavides_colon 49/88
Santiago-Romero asked for the current salaries for employees. Mondowney said the salary is competitive.

Mondowney said to Councilmember Durhal, that a further discussion needs to take place about this budget so Council can better understand the situation.
Amelia Benavides-Colón @benavides_colon 50/88
Councilmember Young said he wished Mondowney would have come better prepared to discuss the details of this budget considering they are asking for approval.

Councilmember Waters asked what the current literacy programs are at DPL.
Amelia Benavides-Colón @benavides_colon 51/88
Mondowney said there are programs for all children and adults who need support. They also partner with Detroit Public Schools to provide services for youth.

Waters asked about the participation rate.Mondowney said they've had hybrid programs that are advertised and used commonly
Amelia Benavides-Colón @benavides_colon 52/88
Waters also offered her help with fundraising and hiring employees.

Councilmember Benson has questions about the fund budget, which is currently at $28 million and wants DPL to start thinking about building new state-of-the-art branches in communities.
Amelia Benavides-Colón @benavides_colon 53/88
Benson said he wants to see a large portion of the fund allocated for new state-of-the-art ($20 million) branches. Benson said he supports moving the budget to executive session so they can determine how to better use the fund budget. Benson said he wants to see Skillman open.
Amelia Benavides-Colón @benavides_colon 54/88
Construction is part of a healthy city, Benson said, so he hopes DPL will reconsider the decision to not re-open.

What would the cost be to make that branch whole, Benson asked?

Brown said a full report will be presented to Council in April about Skillman.
Amelia Benavides-Colón @benavides_colon 55/88
Mondowney said a library has not been built since 1981 and there were three built in the 1910s that have been retrofitted for modern use.

Since 2015 the fund balance has been used to restore six libraries.

Benson asked for a verbal commitment from Mondowney...1/2
Amelia Benavides-Colón @benavides_colon 56/88
to further talks about a new state-of-the-art library in the city. Mondowney requested to defer because she said the decision is not hers alone.

She said the Library System needs to be up to the 21st Century, not 'one library' being renovated to the 21st Century.
Amelia Benavides-Colón @benavides_colon 57/88
Benson committed himself to bettering the relationship with the Library and said he's committed.

Mondowney said former Mayor Coleman Young looked out for the Library, implying the current Council is not helping the Library in the same way.
Amelia Benavides-Colón @benavides_colon 58/88
Councilmember Young II said he didn't know that about his father.

Councilmember Whitfield-Calloway asked about the Sherwood Forest Branch.
Amelia Benavides-Colón @benavides_colon 59/88
Mondowney said the windows need to be replaced and there are plans to reopen soon.
Amelia Benavides-Colón @benavides_colon 60/88
Young II asked how many libraries are slated to re-open this year?

Brown said Chase and Hubbard will be open in the next few months, depending on the HVAC upgrades. Conley is also slated to open once repairs are done and staff is found.
Amelia Benavides-Colón @benavides_colon 61/88
Young II asked if DPL has applied for grants from the Institue of Museum Sciences and the Library of COngress.

Mondowney said they have in the past but not recently.
Amelia Benavides-Colón @benavides_colon 62/88
Young II has asked if DPL has applied for grants to offset tax captures.

Mondowney said no, she just asks that the city not tax capture.
Amelia Benavides-Colón @benavides_colon 63/88
Santiago-Romero made a motion to add to the resolution that the City to help DPL with fundraising efforts. Benson asked if it can expand beyond just fundraising.

Santiago-Romero revised her motion to work with the DPL to work with the City on fundraising efforts and efficiencies
Amelia Benavides-Colón @benavides_colon 64/88
Waters said she wants to see dedicated computer rooms in community libraries for students with no internet access at home.

Mondowney said there is a dedicated technology lab at one branch and other branches do have designated computer areas.
Amelia Benavides-Colón @benavides_colon 65/88
Whitfield-Calloway wants to know how the National Automotive History Collection, largest in the world, is being protected after being damaged by construction at the Hudson site.
Amelia Benavides-Colón @benavides_colon 66/88
Mondowney said the tremor of moving machines at the Hudson site activated DPL's water suppression system, damaging some of the collection. Insurance paid for all damages.
Amelia Benavides-Colón @benavides_colon 67/88
Young II asked if DPL has hired a lobbyist in D.C. about the tax captures.

Mondowney said they hired a lobbyist in 2017 but it is unclear whether the current legislation applies to DPL.
Amelia Benavides-Colón @benavides_colon 68/88
There is a conversation going on about a memo... I have to admit I am a little lost on this topic so I'll refer you to today's note-taker: outliermedia.org
Amelia Benavides-Colón @benavides_colon 69/88
Benson is asking about the expiring mileage.

Mondowney said DPL will be approaching Council soon about being added to the ballot.

Whitfield-Calloway said copies of the mystery memo are being made. Mondowney said to look at page 4 and how "contradictory" it is.
Amelia Benavides-Colón @benavides_colon 70/88
Waters made a motion to ask DPL to send a letter to D.C. asking them to remove Detroit from the tax capture legislation.

Young II reminded her this happened already, last year.

Waters made a motion to put the exception in the closing resolution.
Amelia Benavides-Colón @benavides_colon 71/88
Malik Washington joined the call via Zoom. Young II asked for Corporation Council to join the call as well but they were not immediately available.

Young II said public comment has been moved up to accommodate those in-person from the Library Committee.
Amelia Benavides-Colón @benavides_colon 72/88
We are starting with in-person commentors:

1: In support of ending library tax captures. Said they disagree with the way DPL is being managed

2: A member of the library commission said they would like Council to freeze or end the tax captures.
Amelia Benavides-Colón @benavides_colon 73/88
3: said the city raised the tax capture from last year by 25% and asks Council to approve a budget that has a fixed number for tax captures.

4: A long-time member of the library commission said they would like to freeze the tax capture.
Amelia Benavides-Colón @benavides_colon 74/88
4: said they've encountered a sense of disregard from City Council directed at DPL.

Councilmember Durhal said (for maybe the third time today) that the City Council does NOT raise tax captures. It is not possible. Durhal said Council "has done what they can from this table."
Amelia Benavides-Colón @benavides_colon 75/88
Councilmember Johnson wants to invite DPL's lobbyist to its executive session to hear more about tax captures and what they entail. Johnson said she's seen records of DPL opting out of tax captures on specific projects and she believes it can be done again.
Amelia Benavides-Colón @benavides_colon 76/88
There are eight virtual commentors.

1: asked Councilmember Durhal to find a way to make his ADA meetings online because residents are having difficulty attending in-person.

Durhal said they've found a solution and it's coming soon.
Amelia Benavides-Colón @benavides_colon 77/88
2: said City code requires the public to be made aware of any contracts before moving forward.

3: does not support the city being affiliated, or assisting, DPL. Said they should be independent institutions.
Amelia Benavides-Colón @benavides_colon 78/88
4: Thanked Council for its support of the Right to Counsel program but said there is no staff hired yet.

Young II closed public comment at 3:56 p.m.

5: had technical difficulties and was skipped

6: said the Law Dept. is corrupt
Amelia Benavides-Colón @benavides_colon 79/88
I need a quick water break - this meeting is keeping me on my toes!

Be back in 5!
Amelia Benavides-Colón @benavides_colon 80/88
Ok we're back in business folks and it's time for the Board of Ethics budget hearing.

Here's the agenda: pub-detroitmi.escribemeetings.com/filestream.ash…
Amelia Benavides-Colón @benavides_colon 81/88
Christal Phillips, Executive Director of the Board of Ethics, said the Ethics Board is made up of seven volunteers.

In 2022, the board held 10 total meetings and provides advisory opinions to the Mayor and City Council's Offices.
Amelia Benavides-Colón @benavides_colon 82/88
Phillips said 4,836 employees were trained in 2022 compared to 757 in 2021 and 448 in 2020, an increase of 539%.

The board also rolled out a new logo and Learning Management System in 2022.
Amelia Benavides-Colón @benavides_colon 83/88
Phillips said the Board of Ethics is the lowest-funded oversight agency in the city and the only one required to administer its own training.
Amelia Benavides-Colón @benavides_colon 84/88
The Board of Ethics is requesting an additional $125,000 in FY2023-24 to be used to procure the new Learning Management System.
Amelia Benavides-Colón @benavides_colon 85/88
Councilmember Johnson said she looks forward to working with Phillips in the future. Johnson asked how many investigations were conducted in the previous year, and how many complaints?

Phillips said in 2022-23 there were 3 investigations, 9 requests for advisory opinions.
Amelia Benavides-Colón @benavides_colon 86/88
Councilmember Durhal made a motion to move the budget into executive session for further discuss.

Motion approved.
Amelia Benavides-Colón @benavides_colon 87/88
The meeting was ended at 4:23 p.m.

This concludes my coverage of the Detroit City Council Budget Hearings on Friday, March 17, 2023

For more meeting coverage, check out documenters.org 🎉
Amelia Benavides-Colón @benavides_colon 88/88
If you believe anything in these notes is inaccurate, please email us at documenters@outliermedia.com with "Correction Request" in the subject line.

Attachments

Agency Information

Detroit City Council

www.detroitmi.gov

See Documenters reporting

The Detroit City Council is the legislative body of Detroit, Michigan, United States. The Council is responsible for the creation of local laws—called ordinances. Additionally they pass resolutions, motions, and the proposed city budget. The full-time council is required to meet every business day for at least 10 months of the year, with at least eight of these meetings occurring at a location besides city hall. The council may convene for special meetings at the call of the mayor or at least four members of council. Areas of responsibility for the Budget, Finance and Audit Committee include, Budget, Finance and the Auditor General.

City Council members are elected on the same cycle as the Mayor and will be elected in 2021. Seven members represent the seven council districts, while two members are elected at-large.

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