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A
SSOCIATED
N
EWSPAPERS OF
M
ICHIGAN
P
AGE
5
May 31, 2012
I
NKSTER
- W
AYNE
- W
ESTLAND
The Wayne City Council is set to
approve a budget for the 2012-2013
fiscal year that will bolster the fund
balance, but it will require more
money fromresidents to do it.
The council hosted a public
hearing last week about the pro-
posed 2012-2013 budget, as well as a
Street Lighting System Special
Assessment District that would
essentially charge residents and
business owners to keep the street-
lights on and functional.
The special assessment district
would generate about $528,000,
according to city documents.
“This recommendation was not
an easy one tomake, however it was
one that needed to be made,” City
Manager Robert English wrote in
his presentation to council.
The city estimated an increase of
about $327,000 in tax revenue for
2012-2013, which is still down about
$1.8 million from the 2010-2011
budget cycle. Overall, English said
he's proposing a budget with about
$18.1 million in revenue against
$17.3million in expenditures, allow-
ing the city to add about $828,000 to
the fund balance. The millage rates
would remain the same.
The city complied with three
Economic Vitality Incentive
Program (EVIP) requirements that
call for more streamlined govern-
ment operations, and therefore
received its full share of state
shared revenue, said English. The
requirements
include:
Accountability and Transparency,
Employee Compensation and
Consolidation of Services. Wayne
worked with Garden City to consoli-
date an emergency dispatch center
that is operated out of the Wayne
Police Department. This year they
will consolidate the parks and
recreation department with
Westland, resulting in the closure of
the Bailey Recreation Center in
Westland. Wayne and Westland will
also share a fire chief, the first step
in the consolidation of those two
departments. Wayne Fire Chief Mel
Moore retired earlier this month,
and Westland Fire Chief Mike
Reddy will be a contracted employ-
ee overseeing both departments.
That move alone will save Wayne
about $140,000, according to
English.
The cost of operating and main-
taining the street lights has gone
from about $492,000 to about
$628,000 over the course of the past
five years, according to English. The
SAD can be approved by a vote of
the council-voter approval is not
necessary. The outcome of that vote
wasn't known at press time, but
English said he would recommend
it for approval.
The budget will go into effect on
July 1.
The cost of operating and maintaining
the street lights has gone
from about $492,000 to about $628,000
over the course of the past five years.
”
Wayne budget expected to include assessment
Teamsters lose suit against retiree
A lawsuit filed by the Teamsters
Union seeking more than $80,000
from a Westland retiree was
recently dismissed in Wayne
CountyCircuit Court.
After providing more than 30
years of service and earning a pen-
sion of $2,100 per month, the
Teamsters slapped Basil Vargas
with the lawsuit, said Vargas' attor-
ney Charles E. Clos at Clos, Russell
& Wirth, P.C. in Westland. The
Teamsters, whomistakenly paid
benefits on behalf of Vargas,
sought to hold him liable for their
billing errors, Clos said.
Wayne County Circuit Court
Judge Daniel P.Ryan refused to
allow theTeamsters to
Proceedwith their claimonMay
18.
Pursuant to the terms of his pen-
sion, Vargas, who retired from
Teamsters in 1997, was to be pro-
vided health care benefits until age
65 when he became eligible for
Medicare
benefits. However, shortly after
he retired he became eligible for
Medicare benefits due to serious
health issues. Thereafter, each
time Vargas receivedmedical treat-
ment or
prescription medications he
provided both his Teamster insur-
ance and Medicare cards to his
medical providers.
Eleven years later, Teamsters
became aware that Medicare
shouldhave been the primary
health insurer and that they had
mistakenly paid benefits to third
party providers. Rather
than attempting to reconcile this
error with Medicare or seeking
reimbursement fromthe
medical providers that
Teamsters erroneously paid, they
suedVargas for reimbursement.
Prior to trial in this matter, Clos
successfully argued that the provi-
sions of the Employee Retirement
Income Securities Act (ERISA) gov-
erned the case and that under this
comprehensive statute, a plan
administrator such as Teamsters
was precluded from seeking recov-
ery for payment to third party med-
ical providers from the plan partic-
ipant. In this case, Vargas' counsel
further argued that recovery is only
allowed if the mistaken or overpay-
ments were actually received by
the retiree. Here, not only did
Vargas not receive any payments,
he was unaware that erroneous
paymentswere beingmade.
The significance of this ruling is
that Teamsters should no longer be
able to sue
their retirees seeking repay-
ment of benefits theTeamstersmis-
takenly makes to third party
providers, Clos said.
An appeal is expected.
Firing prompts lawsuit
Pamela Anderson, the former
court administrator and a mag-
istrate at the 21st District Court
in Inkster has filed suit against
that court and the Garden City
21st District Court claiming she
was fired as a result of the mis-
conduct hearings against former
Chief JudgeSylvia James.
Anderson claims in her suit
that she was terminated
because she participated in the
hearings regarding James' con-
duct. Anderson did testify in the
hearings prompted by a com-
plaint filed by the Michigan
Judicial Tenure Commission.
While James was found guilty of
misappropriation of the court
Community Service Account,
she has not been charged with
or found guilty of any criminal
offense.
The final determination
regarding James ability to serve
as a judge is expected by June
15 fromthe tenure commission.
Anderson filed suit in Wayne
County Circuit Court and names
JudgeRichardHammer, Jr., who
is now the chief judge at both
courts and the current adminis-
trator at the Inkster court, Sally
Huskins inher suit.
Huskins replaced Anderson
as court administratorMarch 9.
Anderson claims that her fir-
ing March 16 was a result of her
refusal to delete two cases from
the court computer systemwith-
out written instructions from
Hammer.
She alleges she has lost earn-
ing capacity, suffered emotional
distress, lost wages and suffered
damage toher reputation.
NOTICE
The Romulus Board of Education will conduct a study session on June
11, 2012 at 6pm to discuss the 2012-2013 Budget. The meeting will
be held in the Board of Education Office at 36540 Grant Rd.,
Romulus, MI 48174.
Publish: May 31, 2012
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The Eagle , Call
734-467-1900.