FOR THE RECORD. MY NAME IS ENRIQUE PEPEN DISTRICT FIVE CITY COUNCILOR AND I'M THE CHAIR OF BOSTON CITY COUNCIL COMMITTEE ON CITY SERVICES AND INNOVATION
TECHNOLOGY. TODAY'S AUGUST 14TH, 2025 THE EXACT TIME IS 10:03 A.M. THIS HEARING IS BEING RECORDED AND IS ALSO BEING LIVESTREAMED AT BOSTON GLOBE SLASH CITY
COUNCIL DASH TV AND BROADCAST UNEXPECTEDLY EIGHT RCN CHANNEL 82 AND FILES CHANNEL 964 WRITTEN COMMENTS MAY BE SENT TO THE COMMITTEE EMAIL KEY I.T
BOSTON OUR IT WILL BE MADE A PART OF THE RECORD AND AVAILABLE TO OUR COUNCILORS. PUBLIC TESTIMONY WILL BE TAKEN AT THE END OF THIS HEARING INDIVIDUALS WILL BE CALLED ON IN THE ORDER IN WHICH THEY SIGN UP AND WILL HAVE 2 MINUTES TO
TESTIFY. IF YOU ARE INTERESTED IN TESTIFYING IN PERSON PLEASE ADD YOUR TO THE SIGN UP SHEET NEAR THE ENTRANCE OF THE CHAMBER. IF YOU'RE LOOKING TO TESTIFY VIRTUALLY PLEASE EMAIL OUR CENTRAL STAFF LIAISON SHANE PAC
AT SHANE DODD PAC AT BOSTON OUR GOV FOR THE LINK YOUR NAME WILL BE ADDED TO THE LIST. TODAY'S HEARING IS ON TARGET 1371 ORDER FOR AN EXPEDITED HEARING ON THE CITY'S JULY 4TH
PAYROLL DELAY AND ITS IMPACT ON AFFECTED EMPLOYEES. THIS MATTER WAS SPONSORED BY COUNCILORS ERIN MURPHY AND FLYNN AND JOHN FITZGERALD AND WAS REFERRED TO THE COMMITTEE ON JULY 9TH, 2025.
TODAY I'M JOINED BY MY COLLEAGUES IN ORDER OF ARRIVAL COUNCILOR FLYNN AND COUNCILOR ERIC MURPHY. AH WE ARE ALSO JOINED BY TODAY'S PANELIST WHICH.
SCOTT FINN CITY AUDITOR. ALEX LAWRENCE CHIEF PEOPLE OFFICER. AND ASHLEY CRAWFORD BURGER CHIEF FINANCIAL OFFICER. I'LL START OFF WITH A QUICK OPENING REMARKS AND THEN I'LL PASS IT OVER TO THE SPONSORS.
SO THANKS TO COUNCILOR MURPHY. COUNCILOR FLYNN, COUNCILOR FITZGERALD FOR LEADING THIS DOCKET AND FOR INCLUDING MYSELF AND FOR INCLUDING MYSELF HERE AS A CHAIR. THANK YOU FOR THE PANELISTS FOR BEING HERE TODAY. UM, YOU KNOW, THIS IS A VERY
IMPORTANT TOPIC. THIS IS ONE THAT IMPACTS OUR CITY EMPLOYEES. THEY'RE THE FRONT WORKERS OF OUR CITY. WANT TO MAKE SURE THAT WE GOT THIS WHICH HAS GOT THIS RIGHT IN THE IN THE FUTURE AND THAT I KNOW THAT THIS IS SOMETHING THAT WE WERE ABLE TO RESOLVE
FOR SOME OF EXPEDITE. SO THANK YOU FOR FOR WHAT YOU DID BUT INTERESTED TO LEARN MORE OF WHAT WE CAN DO RIGHT MOVING FORWARD. I'LL PASS IT OVER TO MY COLLEAGUES FOR THEIR STATEMENTS . THANK YOU.
THANK YOU, CHAIR AND THANK YOU FOR GETTING THESE IMPORTANT HEARINGS THAT FILED ON SCHEDULE. I'M HAPPY THAT WE'RE HERE TO TALK ABOUT IT. SO GOOD MORNING.
THANK YOU EVERYONE HERE AND I KNOW MANY PEOPLE ARE LISTENING IN. WE'RE HERE TODAY BECAUSE THOUSANDS OF BOSTON EMPLOYEES, PEOPLE WHO DEDICATE THEIR CAREERS TO SERVING THIS CITY
WERE EXPECTING TO WAKE UP ON JULY 4TH WITH THEIR PAYCHECK ALREADY IN THE BANK THE DAY BEFORE. INSTEAD MANY WOKE UP TO EMPTY BALANCE RENT WAS DUE BILLS FOR
MANY HAD ALREADY PROCESSED, HOLIDAY PLANS HAD BEEN MADE AND FOR SOME FAMILIES THIS HURT TWICE AS MUCH BECAUSE MORE THAN ONE FAMILY WORKS FOR THE CITY. AND IN ONE CASE I WAS TALKING
TO A FAMILY WHO MOM AND DAD BUT ALSO IT WAS THEIR CHILD'S FIRST TIME WITH A SUMMER JOB AND WAS ALSO EXPECTING THEIR FIRST PAYCHECK AND HAD FOUND WEEKEND PLANS FOR THE 4TH OF JULY.
I UNDERSTAND THAT WHEN JULY 4TH FALLS ON A FRIDAY PAYDAY IT CAN CAUSE CONFLICT WHEN ESPECIALLY WHEN A FEDERAL HOLIDAY IS ON THE EVERY FRIDAY. BUT THIS IS NOT NEW AND IT'S
NOT UNIMAGINABLE IN THE PAST WHEN THIS EXACT SITUATION OCCURRED. THE CITY PAID EMPLOYEES ON THURSDAY BEFORE THE HOLIDAY SO NO ONE HAD TO GO INTO A LONG WEEKEND WITHOUT THEIR PAYCHECK .
THAT'S THE COMMON SENSE APPROACH AND IT'S THE OBLIGATION THE CITY HAS TO ITS WORKERS. THIS YEAR THAT DIDN'T HAPPEN. INSTEAD, MANY EMPLOYEES ARE
PENDING DEPOSIT DATE OF MONDAY SEVEN, THREE DAYS AFTER THE HOLIDAY BECAUSE BANKS WERE CLOSED ON FRIDAY AND THEY NEVER PROCESS ON SATURDAY AND SUNDAY THAT LEFT WORKERS WITH THE ACT
WITHOUT ACCESS TO THEIR OWN MONEY WHEN THEY NEEDED IT MOST . SOME BANKS WERE ABLE TO PROCESS DEPOSITS EARLY BUT OTHERS DID NOT. I ALSO UNDERSTAND THAT TOP CITY ADMINISTRATORS SPENT MUCH
OF THURSDAY ON THE PHONE WITH BANKS TRYING TO FREE UP FUNDS MAINLY FOR THEIR OWN CUSTOMERS. TO ME THAT'S REACTIVE, NOT PROACTIVE AND IN MANY CASES,
YOU KNOW, IT WAS ALMOST PROBABLY IMPOSSIBLE. I KNOW I DID SPEAK WITH THE TREASURER THAT DAY THAT YOU KNOW, KNOWING WHERE EVERYONE'S CHECKS GET DEPOSITED ALSO.
SO I KNOW THERE WAS SOME BIG BANKS AND THEY HAVE THE FUNDS TO BE ABLE TO FREE IT UP. BUT SOME OF OUR SMALLER CREDIT UNIONS THAT MANY OF OUR CITY EMPLOYEES DEPEND ON FOR THEIR MORTGAGES AND THEIR CAR
PAYMENTS WEREN'T ABLE TO DO THAT. AND I'LL BE HONEST THIS WASN'T JUST A THEORETICAL PROBLEM FOR ME. I HAD A FEW BILLS SET UP TO AUTO PAY THAT THURSDAY EXPECTING MY PAYCHECK TO BE
THERE AND BECAUSE IT WASN'T I GOT HIT WITH THREE OVERDRAFT FEES $75 IN CHARGES SIMPLY FOR PAYING MY BILLS ON TIME. IF THIS HAPPENED TO ME I CAN ONLY IMAGINE HOW MANY OTHER
THOUSANDS OF WORKERS WERE HIT WITH FEES. MANY OF US PAY OUR BILLS ONLINE AND SET UP OUR PAYMENTS SO WE DON'T FORGET OR GET YOU KNOW, ANY LATE FEES SENT.
SO I ALSO GOT CALLS AND TEXTS FROM EMPLOYEES THAT MORNING. ONE STORY I JUST WANT TO SHARE WAS A FAMILY DRIVING TO THE CAPE FOR THE 4TH OF JULY WEEKEND AND THEY PULLED OVER TO FILL UP THEIR GAS TANK AND THE
CARD WAS DECLINED SO THEY CHECKED THEIR BALANCE AND THAT'S WHEN THEY REALIZED THAT THEIR CHECK WASN'T THERE. AND SO WE DO TALK A LOT IN THIS CHAMBER AND I KNOW DURING BUDGET SEASON AND ANY TIME YOU COME BEFORE US WITH NEW
CONTRACTS WE TALK ABOUT, YOU KNOW, MAKING SURE THAT WE'RE PAYING OUR WORKERS A LIVABLE WAGE, THAT ONE JOB SHOULD BE ENOUGH BUT WE KNOW IN THE MOST EXPENSIVE CITY TO LIVE IN, YOU
KNOW, EVEN SOME OF OUR TOP PAID EMPLOYEES ARE LIVING PAYCHECK TO PAYCHECK SO IT'S NOT UNIMAGINABLE THAT MANY PEOPLE REALLY DO NEED TO MAKE SURE IN
1 TO 3 DAYS DELAY CAN CAUSE HAVOC FOR THEIR FOR THEMSELVES ESPECIALLY ON SUCH WHAT MANY PEOPLE LOOK FORWARD TO AND MAYBE THE ONLY WEEKEND THEY HAVE TO GET AWAY. SO THE RESULT OVERDRAFT FEES,
LATE RENT NOTICES CANCELED HOLIDAY PLANS AND UNNECESSARY STRESS FOR PEOPLE WHO HAVE ALREADY GIVEN UP SO MUCH FOR THIS CITY. SO TO ME THIS ISN'T JUST ABOUT A MISSED PAYDAY. IT'S ABOUT THE TRUST, RELIABILITY AND THE DIGNITY
OF WORK. SO I HOPE WE CAN FOCUS ON MAKING SURE IF THERE IS A WAY TO MAKE ANY EMPLOYEE WHOLE FOR ANY FINANCIAL HARM THEY MAY HAVE SUFFERED. AND JUST TALKING THROUGH AND
MAKING SURE LIKE HOW DO WE MAKE SURE THIS NEVER HAPPENS AGAIN? BECAUSE OFTENTIMES LIKE THE SIDEWALK HEARING WE HAD YESTERDAY, IT'S OFTEN ABOUT SETTING REASONABLE EXPECTATIONS, MAKING SURE THAT
OUR RESIDENTS KNOW WHAT TO EXPECT AND THAT YOU KNOW THE TRUST IN CITY GOVERNMENT. SO THANK YOU FOR BEING HERE. LOOKING FORWARD TO OUR CONVERSATION AND THANK YOU, JOE. OF COURSE. THANK YOU, COUNSELOR.
I'D RECOGNIZE THAT WE'VE ENJOYED MY COUNCILOR. FITZGERALD COUNSELOR FLYNN OR THANK YOU, MR CHAIR. THANK YOU TO COUNCILOR MURPHY
AND TO COUNCILOR FITZGERALD AS WELL FOR BRINGING THIS FORWARD AND PROUD TO PARTNER WITH THEM . AND I KNOW ALL OF MY CITY COUNCILORS CITY
COUNCIL COLLEAGUES ALSO RECEIVED CALLS DURING THIS PERIOD OF TIME AND RESPONDED APPROPRIATELY FROM THEIR CONCERN TO THEIR CONSTITUENTS AS WELL TRIED TO HELP THEIR
CONSTITUENTS THE BEST THEY COULD. THAT WAS A THAT WAS A TOP PRIORITY. I HAD ONE CALL AMONG MANY FROM A FROM A MOTHER PERSON.
HER SON WAS GOING TO COLLEGE AND SHE NEEDED TO GUARANTEE HIS SEAT AS A FRESHMAN IN COLLEGE AND SHE WAS GOING TO USE THAT MONEY TO SEND THE MONEY TO THE
COLLEGE. SHE WASN'T ABLE TO DO IT THAT DAY. SHE WENT TO HER HER MOTHER AN ELDERLY WOMAN. SHE WENT TO HER MOTHER AND BORROW THE MONEY SO SHE COULD
GET THE MONEY INTO THE COLLEGE ON TIME AND THEN SHE TOLD ME SHE WORKED THAT WEEKEND HERE IN BOSTON AS A AS A DEDICATED CITY EMPLOYEE FOR THE FOR THE RESIDENTS PROVIDING EXCEPTIONAL
BASIC CITY SERVICES. AND THAT'S WHY THAT'S WHY I'M HERE THAT'S WHY WE'RE ALL HERE IS WE WANT TO MAKE SURE THAT OUR CITY EMPLOYEES AND I HAVE A LARGE NUMBER IN MY DISTRICT.
I KNOW ENRIQUE. YOU DO TOO. AND AARON AND JOHN AS WELL. BUT AND THEN WE HAVE A LOT OF CITY EMPLOYEES AND THEY'RE OUR NEIGHBORS.
THEY'RE OUR THEY'RE OUR FAMILY MEMBERS. THEY'RE THEY COACH SPORTS TEAMS . THEY'RE ACTIVE IN THE COMMUNITY COMMUNITY CIVIC GROUPS AND WE RESPECT THEM.
BUT IT'S UNACCEPTABLE THAT CITY HALL MADE CRITICAL ERRORS IN PROCESSING THE PAYROLL FOR CITY EMPLOYEES ON JULY 4TH. AS I MENTIONED, MANY DEREK
DEDICATED CITY EMPLOYEES INCLUDING FIREFIGHTERS AND OTHERS WORKING OVER THE JULY 4TH LONG WEEKEND DID NOT RECEIVE THEIR PAY.
THIS ERROR REFLECTS POORLY ON OUR PAYROLL FINANCE, HUMAN RESOURCES DEPARTMENT AND THE ENTIRE CITY OF BOSTON INCLUDING THE CITY COUNCIL.
I HAVE ALSO PREVIOUSLY CALLED ON THE CITY OF BOSTON TO COVER LATE FEES. IN MY OPINION IT'S AN EMBARRASSMENT AND IT MUST NEVER HAPPEN AGAIN. THANK YOU, MR CHAIR. THANK YOU, COUNCILOR.
ONE ACKNOWLEDGE THAT WE'VE BEEN JOINED BY COUNCILOR WEBER. COUNCILOR FITZGERALD FLOOR IS YOURS. THANK YOU, CHAIR AND HAPPY TO BE HERE FOR THIS VERY IMPORTANT TOPIC.
LOOK, WE KNOW WE CAN'T CHANGE THE PAST. I MEAN, IT HAPPENED. FOLKS HAD TO GO THROUGH WHAT THEY HAD TO GO THROUGH AND IT WAS VERY UNFORTUNATE. I THINK MY COLLEAGUES I WON'T REITERATE WHAT THEY SAID BUT I
DO ECHO THEIR STATEMENTS IN THAT IT PUT A LOT OF PEOPLE IN A BIND IN THESE DAYS. YOU KNOW, THE SIGNS ARE COMING OFTEN AND SO EVERY SINGLE ONE WE CAN AVOID. WE SHOULD BE.
I THINK WHAT'S IMPORTANT HERE AND WHAT I LOOK FORWARD TO HEARING IS HOW THIS WILL NEVER HAPPEN AGAIN. THE STEPS WE HAVE TAKEN IN ORDER TO MAKE SURE THAT THIS DOESN'T HAPPEN BUT AND WHATEVER
REASON THIS DID OVER SAY DID OCCUR THAT WE HAVE FIGURED OUT WHY IT OCCURRED. BUT OTHER THAN THAT, YOU KNOW, I FEEL FOR THE FOLKS THAT HAD
THAT JULY 4TH KIND OF, YOU KNOW, TAKING THAT HIT AND HAVING A NOT AS AN EXCITING WEEKEND AS THEY WOULD HAVE LIKED TO HAVE HAD AND THAT STINKS FOR THOSE FAMILIES AND THOSE INDIVIDUALS.
BUT RIGHT NOW IT'S MUCH MORE IMPORTANT TO MAKE SURE WE FOCUS ON THE SOLUTION SO I LOOK FORWARD TO THAT. THANK YOU ALL. THANKS TO YOU. THANK YOU. COUNCILOR COUNCILOR WEBER. THANK YOU.
THANK YOU, CHAIR. YOU KNOW, AS A WORKERS RIGHTS ATTORNEY, ONE OF THE BIGGEST CASES I WORKED ON INVOLVED THE LATE PAYMENT OF WAGES TO WORKERS. I MEAN THAT WAS A STATE THAT
THE STATE OF IOWA HAD DELAYED MONTHS INTENTIONALLY. BUT HERE THAT'S NOT THE CASE. BUT YOU KNOW, I THINK IT'S ILLUSTRATED BY THAT CASE AND
OTHER CASES IT'S VERY IMPORTANT THAT WE PAY OUR WORKERS ON TIME THAT YOU KNOW, THERE'S TIME YOU KNOW, HERE WHERE WE I KIND OF WE KNEW WHAT WAS COMING IN
BEFORE AND I'M JUST INTERESTED TO HEAR LIKE, YOU KNOW, WHAT WE DID TO PLAN AND NOTIFY WORKERS BEFOREHAND AND AND HOW WE'RE GOING TO MAKE SURE THIS DOESN'T HAPPEN AGAIN AS COUNCILOR FITZGERALD SAID. SO THANK YOU VERY MUCH.
THANK YOU, COUNCILOR. ALL RIGHT. AND I'LL TURN IT OVER TO THE PENALTIES FOR THEIR OPENING STATEMENTS AND PRESENTATION. OKAY. THANK YOU. GOOD MORNING. THANKS FOR HAVING US HERE. I'M ASHLEY GROFF FROM CHIEF
FINANCIAL OFFICER. I'M JOINED BY ALEX LAWRENCE, OUR CHIEF PEOPLE OFFICER AND SCOTT FINN, CITY AUDITOR. THANK YOU FOR HAVING US HERE TODAY TO DISCUSS THE PAYROLL INCIDENT THAT OCCURRED AROUND THE JULY 4TH HOLIDAY.
OUR HOPE TODAY IS TO PROVIDE FLAHERTY AROUND WHAT HAPPENED. DESCRIBE THE STEPS WE TOOK TO MITIGATE THE IMPACT IN THE MOMENT AND SHARE CHANGES WE'VE PUT IN PLACE TO PREVENT THIS FROM HAPPENING IN THE FUTURE. FIRST AND FOREMOST, OF COURSE
WE WOULD LIKE TO APOLOGIZE TO THE EMPLOYEES WHO ARE IMPACTED BY THIS AND ALSO THANK THE MANY CITY EMPLOYEES MANY OF WHOM ARE ALSO EXPERIENCING ISSUES WITH THEIR PAY WHO SPRUNG TO ACTION TO ADDRESS THIS ISSUE AHEAD OF THE HOLIDAY WEEKEND.
JUST A LITTLE BIT ABOUT THE PROCESS WE GO THROUGH TO SET THESE PAYROLL DATES SO EVERY FALL CENTRAL PAYROLL WHICH IS HOUSED IN AUDITING AND OUR HUMAN RESOURCES DEPARTMENT SET THE PAYROLL CALENDAR FOR THE
UPCOMING CALENDAR YEAR. THIS INCLUDES 52 PAY PERIODS BOTH WEEKLY AND BIWEEKLY AND PAYCHECK DATES. ONCE THE PAYROLL CALENDAR IS REVIEWED, REVIEWED AND APPROVED
BY BOTH TEAMS, THOSE DATES ARE ENTERED MANUALLY INTO OUR SYSTEM. IN THIS CASE, ALTHOUGH THE ORIGINAL PAYROLL CALENDAR ACCOUNTED FOR THE JULY 4TH BANK CLOSURE WITH A THURSDAY JULY
3RD PAYCHECK DATE, THE ENTRY INTO OUR SYSTEM WAS ERRONEOUSLY MADE FOR FEBRUARY EXCUSE ME FRIDAY JULY 4TH FOR THE WEEK OF JUNE 30TH. CENTRAL PAYROLL CONDUCTED ITS USUAL PAYROLL CONFIRMATION
PROCESS AND RECONCILIATION PROCESS. ONCE THAT WAS COMPLETE CENTRAL PAYROLL EMAILS TREASURY TO NOTIFY THAT THAT PROCESS IS FINISHED AND THAT CHECKS ARE READY TO BE PROCESSED.
UPON REVIEWING PRINTED CHECKS, TREASURY STAFF DISCOVERED THAT THE PRINTED PAY DATE WAS FOR JULY 4TH. TREASURY STAFF QUICKLY CALLED CITIZENS BANK TO LEARN THEM, ALERT THEM OF THE ERROR AND
ALSO CALLED OUR LIAISON IN THE CITY'S DEPARTMENT OF INFORMATION TECHNOLOGY TO SEE IF THERE WAS ANYTHING WE COULD DO TO SYSTEMATICALLY CORRECT THE ERROR DUE TO THE
VAST VARIABILITY OF THE HUNDREDS OF BANKS THAT ARE AND BANKING INSTITUTIONS THAT OUR EMPLOYEES USE. WE QUICKLY PULLED TOGETHER A TEAM TO TRIAGE THE ISSUE AS
BEST WE COULD AND SPECIFICALLY WE WORK TO WORK WITH CITIZENS TO ENSURE THAT EMPLOYEES THAT RECEIVED PAPER PAYCHECKS HAD THE OPTION TO CASH THEIR CHECKS AT ANY CITIZENS BANK BRANCH
PRIOR TO JULY 4TH. WE ALSO SPRUNG TO ACTION TO CONTACT AS MANY BANKING PARTNERS AS POSSIBLE ESCALATING TO THE CEO, PRESIDENT OR SENIOR MOST REGIONAL MANAGER TO
REQUEST THAT THEY MAKE FUNDS AVAILABLE AS SOON AS POSSIBLE. MANY WERE ABLE TO ACCOMMODATE THE REQUEST AND FUNDS WERE MADE AVAILABLE BEFORE THE NEXT BUSINESS DAY BUT DESPITE THE
SIGNIFICANT EFFORT THAT WENT INTO CORRECTING THIS AND DUE TO THE FACT THAT THERE ARE HUNDREDS OF BANKING INSTITUTIONS THAT ARE EMPLOYEES USE MANY BANKS WERE NOT ABLE TO POST FUNDS UNTIL THE FOLLOWING BUSINESS DAY TO FURTHER
MITIGATE ANY ADVERSE IMPACTS. WE CONTACTED UNION PARTNERS AND ENCOURAGED EMPLOYEES TO CONTACT TREASURY IF ANY EMPLOYEE HAD EXPERIENCED OVERDRAFT FEES AS A RESULT OF THE DELAY. WE RECEIVED 20 REQUESTS TO
WAIVE OVERDRAFT FEES AND WE WERE ABLE TO WORK DIRECTLY WITH BANKS TO WAIVE THOSE FEES IN 18 OF THOSE INSTANCES. ON BEHALF OF THE EMPLOYEE, THE TWO THAT WE WERE NOT ABLE TO
ADDRESS THE BANKS WERE NOT ABLE TO WORK WITH US DIRECTLY AND SO WE CONNECTED THE EMPLOYEE WITH THE BANK AND ENCOURAGED THEM TO TO WORK TOGETHER. WE DON'T KNOW THE RESOLUTION OF THAT.
IF THERE ARE ADDITIONAL INSTANCES BEYOND THOSE 20 PLEASE WE WOULD LIKE TO KNOW ABOUT THEM SO THAT WE CAN WORK TO MAKE IT RIGHT AGAIN. WE SINCERELY APOLOGIZE FOR THE INCONVENIENCE AND DISTRESS THAT
THIS CAUSED OVER THE HOLIDAY WEEKEND GOING FORWARD. WE'VE ADDED ADDITIONAL CHECKPOINTS BETWEEN AUDITING TREASURY AND HUMAN RESOURCES TO IDENTIFY ISSUES EARLY AND PREVENT DELAYS LIKE THIS FROM
EVER HAPPENING AGAIN. SPECIFICALLY, WE NOW CHECK THE PAYROLL CALENDAR EVERY MONDAY AND TUESDAY AND THIS HAS BEEN ADDED TO CENTRAL PAYROLLS WRITTEN PROCESSES. WE'RE ALSO EXPLORING OPTIONS
WITHIN OUR SYSTEM TO UPLOAD A HOLIDAY CALENDAR TO OUR PAYROLL SYSTEM AUTOMATICALLY SO WE WILL NEVER HAVE TO INPUT THESE DATES MANUALLY EVER AGAIN. AND WE'VE ALSO IDENTIFIED
FUTURE INSTANCES IN THE NEXT YEAR AND OUR CAREFULLY PLANNING TO ENSURE THAT THIS WE WON'T RUN INTO THE SAME CHALLENGES. SPECIFICALLY WE KNOW THAT JUNETEENTH WILL FALL ON A
FRIDAY IN 2026 SO WE ARE ACUTELY AWARE OF THAT AND WILL YOU KNOW, BE EXTRA EXTRA CAREFUL THIS YEAR TO ENSURE THAT WE DON'T RUN INTO THE SAME ISSUE AS WE DID ON JULY 4TH.
SO AGAIN VERY SORRY FOR THE INCONVENIENCE AND SOME DISTRESS THAT THAT'S CAUSED OVER THE HOLIDAY WEEKEND. WE'RE AVAILABLE FOR YOUR QUESTIONS AND THANKS AGAIN FOR HAVING US.
THANK YOU. ANY OTHER OPENING STATEMENTS? OKAY. ALL RIGHT. I AM GOING TO TURN IT OVER TO THE FIRST ROUND OF QUESTIONS. WE WILL START OFF WITH THE
SPONSORS OF THOSE BASED ON THE ORDER OF ARRIVAL. SURE. STARTING OFF WITH COUNSELOR MURPHY. THANK YOU. THANK YOU FOR THAT. MY QUESTIONS HAVE SHIFTED A BIT
JUST BECAUSE I HAVE DIRECT QUESTIONS ON YOUR OPENING STATEMENT. SO THERE IS A PRINTED OUT SHEET PANEL THAT YOU CAN PHYSICALLY
SEE THE 52 WEEKS AND THE 26 WEEKS THAT ARE PAY AND THAT ONE SAID THURSDAY, JULY 3RD. BUT SOMEBODY PHYSICALLY ENTERED THE FOURTH, IS THAT WHAT WE'RE
SAYING? CORRECT. AND BUT DOESN'T THE WHEN THAT WAS ENTERED THOUGH WITH THE IN DECEMBER.
LIKE WHAT MONTH OR DATE DOES THAT GET DONE IN NOVEMBER OVER A YEAR. YES. SO OBVIOUSLY HUMAN ERROR CAN HAPPEN. WE'VE HAD HEARINGS IN HERE ABOUT THAT JUST HUMAN ERROR
CAUSING HAVOC SOMETIMES OR INCONVENIENCES. BUT DOES THE PHYSICAL ENTRY OF THE DATES GET SHOWN
SOMEWHERE ON A COMPUTER SCREEN WHERE SOMEONE THEN NEEDS TO CHECK IN LIKE DOESN'T SEVERAL DEPARTMENTS I KNOW WE TALK ABOUT AUDITING BUT HUMAN RESOURCES TREASURY DEPARTMENT
PAYROLL DEPARTMENT. AND SO IN THIS INSTANCE IT WAS CHECKED BY ONE OTHER PERSON WHO DID NOT IDENTIFY THE ERROR. AND SINCE THEN WE'VE REVIEWED
THE PROCEDURES IN MY OFFICE AS WELL AS IN TREASURY AND WE HAVE ADDED ADDITIONAL CHECKPOINTS THROUGHOUT OUR PROCESSES. SO WE HAVE A CHECKLIST EVERY WEEK ON HOW WE CONFIRM PAYROLL.
THERE'S BEEN MULTIPLE STEPS ADDED INTO THAT CHECKLIST TO THAT WHERE IT COULD BE HIT OFF THERE AS WELL AS MORE SIGN OFF FROM MYSELF AND THE TREASURER ON ANY CALENDARS. OKAY.
AND WHY WERE YOU MENTIONING CITIZENS BANK? THANK YOU. GOOD QUESTION. SO CITIZENS IS OUR MAIN BANKING PARTNER SO THEY DO ALL OF OUR YOU KNOW OUR MAIN BANKING SO WE
SEND THE MASTER OR PAYROLL FILE TO THEM AND THEN THEY DISTRIBUTE IT OUT TO THE SUB RECIPIENT BANKS RIGHT. SO CITIZENS CAN DO A LOT AND
YOU SAID ONLY 20 REQUESTS CAME IN FOR WHAT SO MAYBE A COUPLE HUNDRED BUT THEY HAVE $218.3 BILLION IN ASSETS MEMBERS PLUS
CREDIT UNION HAS 343 MILLION. HOW MANY OF THESE QUITE LIKE I SAID IN MY OPENING STATEMENT, THESE CREDIT UNIONS DON'T HAVE THE ABILITY ESPECIALLY THEY THEMSELVES ON A THURSDAY BEFORE
BANK LONG HOLIDAY WERE MAYBE THE PERSON WHO COULD HAVE MADE A DECISION. BUT I DO WANT TO ADDRESS ALSO THAT MANY OF THESE SMALLER CREDIT UNIONS THEY FINANCIALLY
CAN'T TAKE THAT ON. SO WE PUT THEM IN A POSITION WHERE IT WAS ALMOST LIKE AND THAT'S WHAT I WAS HEARING TOO OH WELL THIS CREDIT UNION WAS ABLE TO BECAUSE THIS PERSON GOT A CALL FROM LEW WHERE THIS ONE
WAS ABLE TO THIS BANK, YOU KNOW, WASN'T WILLING TO IT'S NOT THAT THEY'RE NOT WILLING TO PAY THE FINANCIALLY COULDN'T. SO TO COMPARE A SMALL CREDIT UNION IT'S LIKE COMPARING YOU
KNOW THE CORNER SHOP TO TARGET OR SOMETHING LIKE. SO WERE WHAT WHAT ARE WE DOING ABOUT THE SMALLER BANKS WHO WOULD OF COURSE AND HAS AND
THEY HAVE A MUCH MORE PERSONAL RELATIONSHIP WITH THEIR MEMBERS AND MANY ARE PROBABLY NEIGHBORS AND THEY KNOW THEM PERSONALLY AND THEY WEREN'T ABLE TO HELP THEM SO LIKE WERE WE REACHING OUT TO THOSE BANKS SAYING THAT
WE AS A CITY CAN HELP SUPPORT OR COVER THE COSTS WHERE WE TRYING TO MAKE SURE THAT THOSE DEPOSITS WERE CLEARING? SO WHAT WE DID IS WE TRIED TO
CAST AS WIDE OF A NET AS WE COULD WITH THE LIMITED TIME AND RESOURCES WE HAD TO TO ADDRESS THIS. SO WE TALKED TO SOME OF THE THE MAJOR BANKS IN THE AREA YOU
KNOW LIKE OUR ARE BANK OF AMERICA'S ARE YOU KNOW, THE ONES THAT WE KNOW A GOOD CHUNK OF OUR EMPLOYEES BANK WITH BECAUSE WE KNEW IF WE COULD MAKE PROGRESS THERE WE COULD COVER A LOT OF FOLKS THAT HAVE
THEIR DIRECT DEPOSITS WITH THOSE BANKS SO THERE WERE YOU KNOW WE COULDN'T CONTACT ALL OF THEM AND IT YOU KNOW, I DON'T THINK IT WAS NECESSARILY AN ISSUE OF US. YOUR POINT IS WELL TAKEN,
RIGHT? LIKE BEING ABLE TO SEE SOMEBODY DON'T HAVE THE ASSETS ARE ASKED TO THE BANKS WHEN WE CALLED WAS IF THEY COULD MAKE THE FUNDS AVAILABLE PRIOR TO THE THE
FOLLOWING BUSINESS DAY IN HOW WOULD THEY HAVE BEEN ABLE TO MAKE THE FUNDS AVAILABLE LIKE BECAUSE I WAS IN LINE ACTUALLY SO SOME OF MY CHECK GOES TO MEMBERS PLUS THAT'S WHERE MY
THREE INDIVIDUAL EIGHT FEATURE AND MORE GOES TO CITY OF BOSTON I WAS IN LINE SEEING PEOPLE TRYING TO CASH AND DIDN'T EVEN REALIZE IT WAS THE NEXT DAY THAT I WAS LIKE OH THAT'S WHY PEOPLE WERE TRYING TO HAVE
CHECKS CLEAR OR CASH AGAINST A DEPOSIT AND IT WASN'T HAPPENING. SO WHAT WAS THE ASK TO THE INDIVIDUAL BANKS WHEN WE CALLED THEM? YEAH IT WAS AGAIN IF THEY COULD MAKE SURE THAT THE FUNDS WERE
POSTED BEFORE JULY 7TH BUT I MEAN THE BANKS DON'T JUST HAVE RULES TO HOLD YOUR MONEY. THEY USUALLY HAVE RULES BECAUSE THEY HAVE THEIR OWN SYSTEMS IN PLACE LIKE WHERE DIDN'T THEY
HAVE TO OVERRIDE ON A THURSDAY BEFORE THE BIGGEST YOU KNOW I'M JUST YEAH AND IT WAS KIND OF AN EXTRAORDINARY ASK AND SO MANY WERE ABLE TO ACCOMMODATE IT WHICH WAS GREAT BUT AGAIN EITHER BECAUSE WE WEREN'T ABLE
TO TALK TO ALL OF THEM OR FOR OTHER REASONS I MEAN THEY WERE ALSO YOU KNOW, RIGHT BEFORE A HOLIDAY WEEKEND THEIR STAFF YOU KNOW, TIMING THERE WAS A LOT OF THINGS THAT WERE COMING TOGETHER.
YOU MENTIONED UNIONS AND THEN THERE WAS I GUESS SOME 20 CITY EMPLOYEES WERE TOLD THEY COULD TELL THE CITY ABOUT FEES AND THEY GOT WAIVED.
CAN YOU TALK THROUGH THAT AND WHY IT WAS ONLY CERTAIN WAS IT LABOR UNIONS YOU'RE REFERRING TO? YEAH. SO WE DID OUTREACH AND ALSO ENCOURAGE A LOT OF FOLKS WERE ALSO CALLING THE TREASURY DEPARTMENT AS WELL ON THE
THURSDAY AND THEN DAYS AFTER ABOUT THIS ISSUE WE TOOK DOWN EVERYONE'S INFORMATION PARTICULARLY IF THEY HAD A LATE OR AN EXCUSE ME AN OVERDRAFT FEE AND THEN WE WORKED WITH
THEIR BANK TO SEE IF THAT COULD BE WAIVED. SO I CALLED THE TREASURY DEPARTMENT. I HAD THREE OVERDRAFTS NOBODY TOLD ME AND I WAS ALSO
ADVOCATING FOR SAID RESIDENTS WHO WERE TELLING ME THEY HAD OVERDRAFT FEES AND I WAS NEVER TOLD NEVER MIND FOR MYSELF AS A CITY EMPLOYEE AND I WASN'T CALLING ABOUT MYSELF.
I WAS CALLING FOR RESIDENTS WHATEVER 70 I MEAN IT'S NOT I DON'T WANT TO WASTE $75 BUT YEAH, I'M NOT HERE TO SAY I WANT MY MONEY BACK BUT I AM TRYING TO SAY THAT I AM SOMEONE
WHO WAS HIT WITH THREE OVERDRAFT FEES AND I WAS NEVER TOLD WHEN I WAS SPEAKING TO THE TREASURY DEPARTMENT THAT THERE IS A PROCESS IN PLACE AND WHEN WE BROUGHT THIS TO THE FLOOR AS SOON AS WE COULD WHICH WAS THE
WEDNESDAY AFTER OR NO IT WAS BECAUSE THE HOLIDAY YOU KNOW IT WAS THE WEDNESDAY AFTER THAT LIKE WE WERE NEVER TOLD BY THE ADMINISTRATION LIKE OH, IF YOU ARE GETTING CALLS THERE WE ARE
GOING TO CALL ON BEHALF AND TRY TO ADVOCATE THAT THE BANK WAIVES THESE I MEAN 20 SEEMS LIKE A VERY LOW NUMBER LIKE WHAT WAS YOUR OUTREACH AND WHY DID THOSE PEOPLE GET THAT
BENEFIT AND NOT ALL CITY EMPLOYEES IF THERE ARE ADDITIONAL INSTANCES THAT HAVEN'T MADE IT TO US WE WANT TO KNOW ABOUT IT. LIKE HOW DID WE CHOOSE GOING FORWARD? FINE.
THANK YOU FOR SAYING THAT BUT HOW DID WE CHOOSE WHICH CITY EMPLOYEES GOT THE BENEFIT OF HAVING SOMEONE IN THEIR CORNER FIGHTING FOR THEM AND NOT ALL CITY EMPLOYEES? IT WE DON'T HAVE VISIBILITY
INTO EVERYONE'S INDIVIDUAL BANK ACCOUNTS AND SO WE RELIED ON FOLKS TO COMMUNICATE TO US THAT THEY HAD EXPERIENCED AN ISSUE AS A RESULT OF THIS PAYROLL SITUATION. AND SO IF WE TOOK THAT WHETHER
IT WAS DIRECTLY FROM AN EMPLOYEE OR THROUGH A UNION PARTNERS CATALOG TO THAT LIST GOT FOLKS BANKING USUALLY ON THAT LIST WITH US. I MEAN WITHOUT OBVIOUSLY I DON'T WANT ANYONE'S PERSONAL
BANKING INFORMATION SO WE CAN SEE LIKE WHAT LIST WAS BROUGHT TOGETHER AND WHICH RIGHTS LIKE WHICH CITY EMPLOYEES WERE ADVOCATED FOR.
I'LL HAVE TO CHECK I MEAN AGAIN, IT'S ALL PERSONAL INFORMATION. SO I MEAN THAT CAN BE YEAH I MEAN IT COULD BE INITIAL AS OR LIKE DEPARTMENT LIKE I'M JUST TRYING TO FIGURE OUT BECAUSE
YOU SAID THAT WE GOT YOU GOT CALLS BECAUSE WE WERE ALL AND I THINK EVERYONE HERE WHO HAD AN OPENING STATEMENT MENTIONED AND WE'VE BEEN TALKING ABOUT THIS SINCE IT HAPPENED BUT THAT WE WERE ALSO GETTING PERSONAL
CALLS LIKE WHAT CAN I DO? ARE THEY GOING TO HELP ME LIKE AND I THINK WELL THEY HAVEN'T TOLD US WE'RE LOOKING FORWARD TO THE HEARING BUT SO IT'S JUST A LITTLE DISCUSSION OF VERY DISCOURAGING THAT WE'RE HERE AT THE HEARING.
YOU KNOW, A MONTH LATER AND FINDING OUT THAT THERE WAS AN OPTION RIGHT, FOR FOR US TO ADVOCATE MORE FOR OUR RESIDENTS
OR FOR MYSELF IN THIS SECOND. THANK YOU FOR COUNCILOR FLYNN NOW SUPPLEMENTS THANK THANK YOU MR CHAIR WHEN DID THE
ADMINISTRATION FIRST BECOME AWARE THAT THE JULY 4TH HOLIDAY WOULD COINCIDE WITH A BI WEEKLY PAY DAY THIS YEAR THE CALENDAR
WAS DEVELOPED AND CIRCULATED IN NOVEMBER OF 2020. FOR WHAT THERE ARE STEPS AT THAT TIME TO ENSURE THAT THAT WAS IDENTIFIED ON THAT CALENDAR
THAT IT WAS A HOLIDAY AND THAT THE PAY DATE SHOULD BE THE THIRD. AND THEN WERE THERE ANY STEPS TO ENSURE THAT THE PAYCHECKS WOULD BE THERE ON TIME KNOWING THAT WE DO HAVE AN UPCOMING HOLIDAY?
SO BASED ON THE CALENDAR THAT WE HAD DEVELOPED FOR THE WHOLE CALENDAR YEAR, IT WAS IDENTIFIED FOR THAT REASON THE ERROR CAME AFTER THE FACT.
OKAY WHO WAS THE WHO WAS THE SENIOR PERS AND AND HUMAN RESOURCE RESOURCES ARE THE TREASURY ARE OR AUDITING THAT WAS PHYSICALLY IN THE BUILDING
ON THAT DAY WHEN THE CALL STARTED COMING IN MYSELF I WAS THERE SCOTT WAS IN THE OFFICE AND SO WAS JERICHO BRADLEY THE
TREASURER IN HOW TO DO HOW DID YOU FIRST HEAR ABOUT THIS? AS I MENTIONED IN MY OPENING STATEMENT WHEN THE TREASURY DEPARTMENT PRINTED THE CHECKS
THAT WAS WHEN WE FIRST HEARD THAT THERE WAS GOING TO BE AN ISSUE WHERE YOU CAUGHT FLAT FOOTED.
WHAT DO YOU MEAN BY THAT? DO YOU FEEL YOU WERE PREPARED? WERE YOU PREPARED TO DO YOUR JOB TO GET THOSE PAYCHECKS TO CITY EMPLOYEES ON TIME?
I THINK OBVIOUSLY THERE WAS A VERY CONDENSED TIMELINE AND A LOT OF DIRECT DEPOSITS THAT WERE IN PLAY HERE. I THINK THE TOTAL PAYROLL FILE WAS WORTH ABOUT $45 MILLION FOR
THAT WEEK AND SO I THINK WITH THE RESOURCES WE HAD AND THE TIME WE HAD WE ADDRESSED IT AS BEST WE COULD DID WE NOTIFIED
THE UNIONS PRIOR TO THE ARRIVAL OF THE PAYCHECKS THAT WE HAVE A MAJOR SNAFU. WE ARE HERE. YEAH. SO WE AND I MEAN THERE WAS A TON OF COMMUNICATION HAPPENING
ON THAT PARTICULAR DAY. I UNFORTUNATELY WASN'T PRESENT IN CITY HALL BUT WE WERE ALL WORKING AS MUCH AS WE COULD. SO YES, WE WERE CALLING OUR UNION PARTNERS WE EVENTUALLY ENDED UP SENDING A CITY WIDE BROADCAST.
I DO WANT TO ACKNOWLEDGE THAT I DO THINK THAT PROBABLY CAME LATER THAN IT SHOULD HAVE ANY TIME WE'RE SENDING A BROADCAST TO 19,000 EMPLOYEES WE ARE BALANCING ACCURACY, FLAHERTY
OF INFORMATION AND TIMELINESS AND I THINK IF I WERE TO KNOW EVERYTHING I KNEW TODAY, I THINK THAT SHOULD HAVE GONE OUT EARLIER THAN IT DID. SO I JUST WANT TO ACKNOWLEDGE THAT I THINK WE WERE TRYING TO
BALANCE THE FACT THAT IT WAS AS ASHLEY HAS EXPRESSED AND SCOTT HAS EXPRESSED A REALLY COMPLICATED MOVING TARGET AND WE FIND THAT WHEN WE DO LARGE SCALE COMMUNICATIONS WITH THIS LEVEL OF DETAILED INFORMATION THAT IF IT IS NOT ACCURATE WE
CAUSE MUCH MORE CONFUSION AND PANIC. BUT I DO THINK IN RETROSPECT I REALLY WISH WE HAD SENT THAT EARLIER. WE WERE JUST REALLY TRYING TO MAKE SURE WE HAD ACCURATE INFORMATION AND GIVING PEOPLE ALL THE POSSIBLE STEPS THEY
COULD TAKE TO REMEDIATE IT. I WANT TO ACKNOWLEDGE SAM DILLON FROM THE BOSTON FIREFIGHTERS UNION SEVEN 810
FOR THE WORK HE DID ON THAT DAY FIGHTING FOR CITY EMPLOYEES. LET ME ASK A QUESTION TO ALL THREE OF YOU. DO YOU THINK WE WERE CAUGHT FLAT FOOTED BECAUSE A LOT
OF PEOPLE ARE STILL WORKING REMOTELY? NO. AND I JUST WHAT KIND OF SORRY. NO, NO, NO, NOT OKAY.
DEWOLF TO ALL THREE OF YOU WORK FIVE DAYS A WEEK IN OFFICE. I DO. YES. YES. I WANTED TO CLARIFY SO SINCE I SAID I WASN'T HERE THAT DAY I WAS ON PTO THAT DAY I DIDN'T WORK THE ENTIRE DAY BECAUSE OF THIS BUT IT WAS NOT BECAUSE I WAS WORKING REMOTELY.
WE ALL WORK OUT THE PERSON YOU'RE ALL HERE FULL TIME? YEAH. ARE PEOPLE IN YOUR OFFICE? ARE THEY HERE FULL TIME? FIVE DAYS A WEEK IN MY OFFICE? NO, THE MAJORITY. I HAVE 38 EMPLOYEES.
36 ARE COVERED BY COLLECTIVE BARGAINING AGREEMENTS WHERE REMOTE WORK HAS BEEN REMOTE WORKING. HOW ABOUT YOU TWO? SO YEAH, WE PUT OUR HYBRID POLICY. THERE ARE PEOPLE WITHIN OUR
OFFICES THAT ARE ON APPROVED HYBRID SCHEDULES WHICH IS UP TO TWO DAYS OF REMOTE WORK. SO FOR SOME OF MY EMPLOYEES THAT'S ONE DAY SOME OF MY EMPLOYEES IT'S TWO THERE ARE SOME EMPLOYEES WHO ARE FRONT DESK EMPLOYEES AT WORK THAT WE
THINK IS IMPORTANT FOR THEM TO BE IN PERSON. SO IT'S A CASE BY CASE BASIS BASED ON THE INDIVIDUAL NATURE OF THE JOB DESCRIPTION. PEOPLE IN MY OFFICE, THE CFO IS OFFICE. WE'RE ALL IN FIVE DAYS A WEEK
WITH THE EXCEPTION OF TWO OTHER EMPLOYEES WHO ARE ON APPROVED HYBRID SCHEDULES AND I THINK SIMILAR TO WHAT SCOTT SAID THE TREASURY TEAM ALSO HAS A NUMBER OF UNION EMPLOYEES THAT ARE
COVERED BY THOSE COLLECTIVE BARGAINING AGREEMENTS. BUT THE TREASURER IS HERE. DO YOU DO YOU FEEL LIKE YOU LET
THE RESIDENTS CITY EMPLOYEES DOWN BY ACTIONS OR INACTIONS BY CITY OFFICIALS? SO OBVIOUSLY WE MISSED THE MARK AND HAVING THIS HAPPEN IN THE
FIRST PLACE. BUT I AM YOU KNOW, DESPITE THAT PROUD OF WHAT WE WERE ABLE TO ACCOMPLISH IN A SHORT PERIOD OF TIME. I KNOW WE DIDN'T GET TO EVERYONE. I THINK WE WERE ABLE TO DO A LOT IN A SHORT PERIOD OF TIME.
AND AGAIN, THE FACT THAT IT EVEN HAPPENED IS UNFORTUNATE AND I FEEL VERY CONFIDENT THAT WE WILL NOT SEE IT HAPPEN AGAIN . BUT AGAIN I THINK WE DID AS MUCH AS WE COULD WITH THE TIME
WE HAD TO ADDRESS IT. WELL THAT'S MY THAT'S MY MAJOR POINT. CERTAINLY IT'S AN EMBARRASSMENT TO THE CITY AND IT MUST NEVER HAPPEN AGAIN. THANK YOU, MR CHAIR.
THANK YOU, COUNCILOR COUNCILOR FITZGERALD. YES. MINUTES. THANK YOU, CHAIR IN AN INSTANCE LIKE THIS THERE'S ONLY SO MANY PROBING QUESTIONS YOU CAN ASK, RIGHT?
I MEAN WE AND I THINK MY MY TWO PREVIOUS COUNCILORS DID A GREAT JOB OF ASKING THOSE QUESTIONS. I GUESS I WOULD LIKE TO KNOW BUT WHILE ECHOING THAT WE DID
LET DOWN THE WORKERS FOR THE CITY OF BOSTON FOR SURE AND I BELIEVE THAT YOU GUYS FEEL THAT WAY TOO. COULD YOU FOCUS AGAIN ON THE SOLUTIONS AND JUST SORT OF REPEAT IT MAYBE GO MORE IN
DEPTH? I HEARD YOU TALK ABOUT THIS PROBABLY THE THE SOLUTIONS YOU PUT IN PLACE AND THE THINGS THAT WE'RE GOING TO DO. BUT IF YOU COULD JUST DESCRIBE THOSE A LITTLE BIT MORE SO
FOLKS CAN UNDERSTAND NOW HOW WE HOW THIS WILL NOT HAPPEN AGAIN. SCOTT LET ME TAKE SOMETHING SO THE FIRST THING THAT WE'VE IMPLEMENTED IS MORE CHECKPOINTS
DURING OUR CONFIRMATION PROCESS . SO EVERY MONDAY AND TUESDAY WE RUN CERTAIN PROCESSES TO CONFIRM PAYROLL AND CONFIRM ABSENCE BALANCES REVIEW
OF CHECK DATES IS IN THAT PROCESS AT MULTIPLE POINTS WE IMMEDIATELY PRINT THAT OF THE PAYROLL CALENDAR FOR THE REST OF THE YEAR AND MADE SURE THAT THE DATES WERE IN LINE AND
SIGNED OFF ON THAT. WHEN WE TALK ABOUT HOW WE GET THE DATES INTO THE SYSTEM IT IS A VERY MANUAL PROCESS AFTER WE DO THIS MASSIVE REVIEW OF THE WHOLE CALENDAR YEAR AND SO
THERE'S ADDITIONAL CHECKS IN PLACE FOR THAT AS WELL AS WELL AS MY SIGN OFF ON THAT JUST TO ENSURE THAT AT THE END OF THIS PROCESS IT'S VERY MANUAL WHICH
IS IT'S STILL MANUAL IT IS AT THE MOMENT BUT WE ARE ALSO EXPLORING AND WORKING WITH HUMAN RESOURCES AND THE DO A TEAM TO SEE IF WE CAN ADD IN A CALENDAR FUNCTION THAT WILL
GRAY OUT HOLIDAYS SO THAT WE WON'T EVEN HAVE THE OPTION TO SAVE ANYTHING IF WE HAVE A HOLIDAY CHOSEN WHICH WE BELIEVE IS GOING TO BE AVAILABLE TO US
WHICH WILL HELP SOLVE A LOT. BUT UNTIL WE GET THAT IN WE HAVE A LOT OF CHECKS AND SIGN UPS IN PLACE TO MAKE SURE IT DOESN'T HAPPEN. OKAY. IF I COULD JUST FOR A MOMENT I KNOW IT PROBABLY SOUNDS STRANGE
TO PEOPLE WHO AREN'T SORT OF DEEP IN THE WEEDS OF HOW OUR SYSTEMS WORK TO THINK THAT WE HAVE A MANUAL PROCESS HERE JUST AS SOMEONE WHO WORKED IN DO IT FOR A LARGE PORTION OF MY
CAREER WHEN YOU'RE AN EMPLOYER OF OUR SCALE WITH LIKE UNION AGREEMENTS OF OUR LEVEL OF COMPLEXITY THERE'S ONLY SO MUCH LIKE IT IT ACTUALLY TAKES A MASSIVE TEAM TO CREATE THE
SORT OF LEVEL OF COMPLEX SYSTEMS THAT ARE ABLE TO DO THE FUNCTIONS THAT OUR PAYROLL REQUIRES. SO LIKE WE JUST IT'S HARD TO UNDERSTATE HOW COMPLEX A PAYROLL PROCESS OF OUR SCALE
IS. AND SO IT SOUNDS IT CAN SOUND REALLY STRANGE TO PEOPLE OH YOU HAVE SOMEONE MANUALLY ENTERING THINGS BUT THAT JUST HAS TO DO WITH THE SORT OF LEVEL OF COMPLEXITY THAT OUR SYSTEMS REQUIRE.
THERE IS A TON OF WORK WE CAN DO TO MAKE THAT MORE AUTOMATED AND NOT SUBJECT TO HUMAN ERROR AND THAT'S WHY YOU SEE US CONTINUALLY COMING TO BUDGET AND REQUESTING FUNDS FOR THESE PROJECTS THAT SOUND REALLY FAR
REMOVED FROM THE THINGS PEOPLE CARE ABOUT. BUT THE WORK THAT OUR ADMINISTRATIVE TEAMS DO LIKE ARE THE WORK THAT ENSURES THIS STUFF HAPPENS. AND I JUST WANT TO SAY ONE MORE TIME THAT LIKE NO PERSON IN PAYROLL OR HUMAN RESOURCES OR
WHO IS DEDICATED THEIR PROFESSION TO THIS WANT SOMETHING LIKE THIS TO HAPPEN. THEY ARE COMING IN EVERY DAY NOT FOR THE WORK THAT IS GENERALLY LIKE USUALLY IF THEY'RE IF WE'RE ON THE FRONT PAGES LIKE SOMETHING HAS GONE WRONG THAT IS WHAT HAPPENED IN
THE CIRCUMSTANCE AND LIKE OBVIOUSLY YOU KNOW IT'S NOT JUST US WHO FEEL BAD ABOUT IT BUT ALL THE CITY WORKERS WHO WORK EVERY DAY TO MAKE SURE THESE SYSTEMS DO FUNCTION. AND SO, YOU KNOW, WE WE DO WANT TO HIGHLIGHT THE FACT THAT
THERE ARE REALLY LARGE TEAMS THAT WORK REALLY HARD TO PREVENT THINGS FROM LIKE THIS HAPPENING AND IT'S OBVIOUSLY DEEPLY REGRETTABLE THAT IT DID GREAT. I WOULD LIKE TO THERE WERE
SEVERAL BANKS THAT I THINK THAT DID HONOR THE PAY THE PAYROLLS RIGHT. DO YOU KNOW WHICH ONES AS I KNOW THE FIRE CREDIT UNION WAS ONE OF THEM WAS THE DO YOU GUYS KNOW LIST OF ANY OF OTHERS JUST
OFF THE TOP OF MY HEAD CITIZENS TD BANK BANK OF AMERICA WAS ABLE TO WORK WITH US. JPMORGAN CHASE WAS ABLE TO WORK WITH US. I THINK FOLKS WITH THAT BEING
TO THEM WERE PAID ON SATURDAY. THOSE ARE JUST THE ONES OFF THE TOP OF MY HEAD. BUT THERE WERE MANY MANY OTHERS AND I THINK ONE OF THE MOST INTERESTING THINGS GOING THROUGH THIS PROCESS WAS SEEING HOW MANY BANKS THAT OUR
EMPLOYEES BANK WITH HUNDREDS HUNDREDS OF ROUTING NUMBERS THAT WE NEEDED TO SORT THROUGH AND SORT OF MATCH TO DIFFERENT BANKS. IT WAS REALLY INCREDIBLE THE SCALE. YEAH.
AND JUST FINALLY BACK TO THE ISSUE AT HAND WHEN YOU FOUND OUT ON THE MONDAY WHEN THE CHECKS ARE PRINTED OR I'M SORRY WHEN THE CHECKS WERE PRINTED THAT SAID THE JULY 4TH DATE WHAT DAY WAS WHAT DAY WAS THAT?
I DON'T KNOW WHAT DAY IT WAS EXACTLY BUT WAS IT THAT WEEK OR WAS IT LIKE IT WAS THAT WEEK? IT WAS NOT WHAT WAS THAT RIGHT. BUT I IMAGINE AT THAT POINT ONCE IT'S PRINTED KNOWING THE COMPLEX PROCESS THAT HAS TO GO THROUGH THAT YOU GUYS PROBABLY
WENT OH SHOOT RIGHT LIKE THAT I WOULD FEEL THAT YOU TAKE LIKE YOU DO YOU YOU YOU PRETTY MUCH KNEW AT THAT POINT YOU WERE PAST THE POINT OF NO RETURN. THAT'S RIGHT. YEAH AND I THINK ACTUALLY DESCRIBE THAT WE TRIED TO SEE
WHAT WE COULD DO TO REVERSE IT AT THAT POINT AND IT JUST WAS TOO LATE AND AND I THINK WE SO WE DID TRY WE DID EXPLORE IF THERE WAS AN OPTION TO SORT OF LIKE PULL IT BACK AND REISSUE IT.
AND I THINK THE CONCERN WAS THAT WE WOULD HAVE CREATED MANY MORE PROBLEMS INSTANCES WHERE FOLKS WOULD HAVE BEEN DOUBLE PAID OR NOT BUT YOU KNOW SO IT WAS IT WAS TO THE RISKS WERE
TOO SIGNIFICANT AND UNKNOWN FOR US TO DECIDE TO PROCEED THAT WAY. I DON'T KNOW IF ANYONE BEING DOUBLE PAID WOULD CONSIDER THAT A RISK BUT THAT'S A RISK I WOULD ALWAYS TAKE. BUT YOU KNOW, I DO APPRECIATE
YOUR EFFORTS VERY OBVIOUSLY UPSET KNOWING IF I MISSED A PAYCHECK HOW QUICKLY THINGS GO DOWNHILL WITH MORTGAGE KIDS PAYMENTS, EVERYTHING.
IT REALLY DOES HAVE AN EFFECT. SO THANK YOU FOR YOUR TIME IN EXPLAINING IT AND THANK YOU. CHAIR THANK YOU, COUNSELOR. COUNSELOR RUBBER HI.
THANKS. SO I GUESS SO WHEN WHEN THE WHEN THE PAYCHECKS GET PRINTED AND YOU SEE THAT WAS THE UNDER WAS I GUESS ACTUALLY WAS IT
YOUR UNDERSTANDING THAT PEOPLE ARE GOING TO PAY PAID ON JULY 3RD BEFORE THAT FROM NOVEMBER 2024 TO THAT TIME? YES. CORRECT. SO OUR UNDERSTANDING OF THE
PAYROLL CALENDAR AS IT WAS SET WAS THAT IT WAS GOING TO BE JULY 3RD BUT IT WASN'T UNTIL WE NOTICED ON THE PRINTED CHECK THAT THE SYSTEM AND THE CALENDAR WERE OUT OF WHACK. OKAY.
AND I GUESS SO IS IS PART OF THE PROBLEM. I MEAN IF EVERYONE WAS GETTING PAID DIRECT DEPOSIT, WOULD THAT HAVE UNFORTUNATELY NO BECAUSE THE CHECK DATE WAS ON JULY 4TH
AND THAT WAS THE ISSUE. SO SOME BANKS WERE ABLE AND YOU KNOW, HAD A POLICY OF POSTING THOSE FUNDS EARLY AND OTHERS WOULDN'T POST UNTIL THE FOLLOWING BUSINESS DAY.
OKAY. AND I GUESS SO I GUESS HOW MUCH IS THE IS THIS BIWEEKLY THE
PAYROLL LIKE ARE LIKE THE TOTAL CITY PAYROLL SO IN THIS INSTANCE THE PAYROLL FOR THAT PARTICULAR WEEK WAS I THINK $45 MILLION.
AND DO YOU KNOW LIKE WHAT PERCENTAGE OF THAT GOT PAID OUT TIME OR SO BASED ON KIND OF SOME ROUGH MATH BACK OF THE NAPKIN AGAIN, THIS WAS LIKE AN EXERCISE ON ME ON FRIDAY AND
SATURDAY MORNING PIVOTING ROUTING NUMBERS AND TRYING TO FIGURE OUT WHAT I KNEW CERTAIN BANKS HAD BEEN PAID. I THINK BY SATURDAY WE THOUGHT THAT ABOUT 75% OF FOLKS HAD RECEIVED PAY BUT AGAIN HUNDREDS
OF BANKING INSTITUTIONS AND THIS WAS A KIND OF ROUGH BACK OF THE NAPKIN AND HAD JUST YOUR REVIEW WHERE YOU CALLING BANKS SO HOW MANY PEOPLE HAVE YOU PEOPLE ARE ON THIS TASK.
SO WE WERE CALLING BANKS ALL DAY ON THURSDAY TO ASK THEM TO PROCESS THOSE THEY WOULD GO OFF TO THEIR TEAMS CALL US BACK. WE WERE YOU KNOW, WE WERE WORKING WITH MANY AND AGAIN
REALLY FOCUSING ON BANKS. WE HAD RELATIONSHIPS WITH NEW SENIOR FOLKS AND THEN SOME OF THE LARGER INSTITUTIONS TO TRY AND YOU KNOW, BE AS EFFICIENT AS POSSIBLE. AND SO YES WE WERE WORKING WITH
ALL OF THEIR TEAMS. AND HOW MANY PEOPLE DID YOU HAVE MAKING THESE CALLS? THERE WAS A SMALL TEAM OF US AGAIN IT WAS MYSELF, THE MAYOR'S CHIEF OF STAFF WAS
ASSISTING AS WELL. OUR TREASURER WAS HELPING BUT I JUST ALSO THE ONE THING I DIDN'T FULLY APPRECIATE ON THE DAY WAS THAT IN ADDITION TO THIS PAYROLL INCIDENT HAPPENING
THAT PARTICULAR WEEK IS ONE OF OUR BIGGEST WEEKS FOR REGULAR PAYMENTS. SO IT'S THE FIRST WARREN OF THE FISCAL YEAR SO WE'RE MAKING OUR
PENSION PAYMENT, WE'RE MAKING OUR OPEB PAYMENTS. SO OVER ADDITION TO THIS WE WERE MAKING PAYMENTS AND BOUNCING OVER $1,000,000,000 OF PAYMENTS THAT WEEKEND. SO THERE WAS A LOT GOING ON IN
THE TREASURY DEPARTMENT ON THAT DAY. OKAY. AND THEN I GUESS SO I HAVE AN
EMAIL FROM THURSDAY, JULY 3209 TWO PEOPLE IN DALLAS. DID YOU SAY YOU WISH THAT YOU HAD GOTTEN THAT OUT EARLIER? I MEAN HOW EARLY COULD IT HAVE GOTTEN OUT?
I THINK IT WOULD HAVE PROBABLY DEPENDED ON THE QUALITY OF INFORMATION WE WANTED TO PROVIDE PEOPLE AND SO THAT'S WHAT I WAS SAYING IS LIKE EVERY TIME WE THINK ABOUT SENDING A CITY WIDE BROADCAST WE HAVE TO SORT OF BALANCE THE AMOUNT
OF COMPLETENESS AND ACCURACY WITH THE AMOUNT OF WITH TIMELINESS. AND SO YOU KNOW, I THINK WE COULD HAVE SAID HEY FOLKS, SOMETHING IS WRONG. SOME OF YOU MIGHT GET PAID.
SOME OF YOU YOU KNOW, WE COULD HAVE WE COULD HAVE PROBABLY GIVEN A VERSION OF THAT EMAIL THAT WOULD CALMED SOME PEOPLE DOWN ALSO CREATED A BUNCH OF HYSTERIA AND NOT PROVIDED A LOT OF FLAHERTY.
MAYBE THAT'S WHAT WE SHOULD HAVE DONE EARLIER BUT I THINK ULTIMATELY WE REALLY WHEN YOU'RE EMAILING A GROUP THAT IS THAT LARGE YOU REALLY IN OUR EXPERIENCE WANT TO MAKE SURE YOU HAVE COMPLETENESS OF INFORMATION.
SO IT'S A BALANCING ACT. AGAIN, I'M IN NO WAY SAYING THAT WE HIT THE PERFECT SCALE OF THAT BALANCE BUT IT WAS A DELIBERATE PROCESS WITH MANY PEOPLE TRYING TO THINK ABOUT WHAT IS THE RIGHT AMOUNT OF INFORMATION WE CAN GIVE
PEOPLE THAT IT'S ACTIONABLE FOR THEM. OKAY. AND THE EARLIEST THAT YOU COULD HAVE SENT SOMETHING OUT IS AFTER THAT AFTER THE PAYCHECKS WERE PRINTED AND THAT WAS WAS THAT MONDAY? I DON'T KNOW EXACTLY WHAT DAY
IT WAS. IT WAS YOU KNOW YEAH WE COULD HAVE MAYBE SENT TO THE SEND A DATE EARLY A DAY EARLIER. IT WOULDN'T HAVE BEEN COMPLETE INFORMATION ABOUT WHAT THE STEPS THEY COULD TAKE WERE TO MEDIATE THE PROBLEM PAYROLL WAS
NOT CONFIRMED UNTIL LATE ON MONDAY SO THE WHOLE PROCESS ABOUT NOTIFYING TREASURY AND TREASURY STARTING THEIR PROCESSES WASN'T UNTIL LAST TUESDAY MORNING BUT I DON'T EVEN THINK IT WAS AT THAT POINT.
BUT IT DEFINITELY WAS NOT MONDAY. OKAY SEE THAT THAT'S ALL I HAVE TO THANK YOU.
THANK YOU COUNCILOR. WHOEVER YOU KNOW, I AGREE A LOT OF MY COLLEAGUES HAVE ALREADY ASKED A LOT OF THE QUESTIONS THAT I THINK ARE POURING IN FOR THIS CONVERSATION AND TO KNOW THAT THERE ARE STEPS IN PLACE
TO PREVENT THIS FROM HAPPENING IN THE FUTURE. I HAVE MORE OF A CURIOSITY QUESTION AND I'M TALKING WITH DIFFERENT COLLEAGUES IN THE CITY. HOW IS IT DETERMINED THAT BASED ON YOUR BANK YOU GET PAID ON
DIFFERENT DAYS? I JUST WANT TO KNOW LIKE WHAT? HOW WAS THAT PLAYED OUT? WAS THAT BASED ON HOW THE BANK WORKS OR THE RELATIONSHIP WITH BANK IN THE CITY? I THINK THAT'S ENTIRELY BASED ON THE INDIVIDUAL BANK.
OKAY. SO I THINK LIKE TD FOR EXAMPLE AND I JUST KNOW THAT I DON'T BANK WITH TD PERSONALLY BUT I KNOW THIS FROM THEIR TELEVISION COMMERCIALS THEY HAVE A PROGRAM WHERE DIRECT DEPOSITS SHOW UP TWO DAYS EARLY, RIGHT? SO I THINK IT'S ENTIRELY
DEPENDENT ON THE INDIVIDUAL BANK YOU USE THAT MAKES SENSE. YEAH I HAVE SANTANDER AND I'M VERY MUCH I'M ONE OF THE LAST ONES TO GET PAID USUALLY OR THE DAY ALSO LOOKS LIKE I HAVE TO
GO TO A BANK BUT I'M JUST AGAIN JUST THANKFUL FOR THE FACT THAT MY COLLEAGUES REALLY DID ASK ALL THE QUESTIONS THAT I HAD. I AM GOING TO GIVE OPPORTUNITY FOR A SECOND ROUND OF QUESTIONS JUST IN CASE THERE'S ANY FOLLOW
UPS BANK COUNSELOR MURPHY THANK YOU. SO I DO JUST WANT TO GO BACK TO THAT POINT BECAUSE I I DID TALK TO A FEW OF THE SMALLER CREDIT
AND THEY DID FEEL AS THOUGH, YOU KNOW, MEMBERS WERE CALLING THEM SAYING WELL, THIS BANK DID IT. WHY CAN'T YOU? AND THEN MENTIONED JP MORGAN THEY HAVE $4 TRILLION AN ASSET.
RIGHT? SO YEAH, I MEAN THEY COULD HAVE PAID OUT $43 MILLION AND NOT EVEN NOTICE IT WAS MISSING FOR A FEW YEARS. SO I DO JUST WANT TO MAKE SURE THAT OUR BANKS THAT OBVIOUSLY
CARE ABOUT THEIR MEMBERS THAT IT ALMOST SEEMS LIKE WE MADE A MISTAKE HERE IN THE CITY AND THEN WE MADE IT THE PROBLEM OF THESE LOCAL BANKS WHO HAVE VERY GOOD RELATIONSHIPS AND WANT THEIR MEMBERS TO STAY
RIGHT I MEAN I DON'T KNOW IF HE MEANT IT BUT WE DON'T WANT YOU RIGHT. BUT MEMBERS DON'T WANT TO SAY I'M TAKING MY MONEY AND I'M CHANGING. I DIDN'T GET PAID ONCE AND THAT HAPPENS, RIGHT?
YOU LOSE CUSTOMERS FROM ONE BAD EXPERIENCE. SO IT'S VERY EASY FOR JPMORGAN TO FLOAT TO THEM. 43 MILLION IS NOTHING. SO ARE YOU SAYING THAT THE
CHECKS WHEN THE PHYSICAL CHECKS WERE PRINTED THERE WAS A HUMAN PERSON IN THE TREASURY DEPARTMENT WHO NOTICED IT AND WHAT DAY WAS THAT? THURSDAY.
NO, I, I AGAIN I DON'T KNOW WHICH DAY THE THE TREASURY DEPARTMENT PRINTED THE CHECKS BUT I DO KNOW THAT THERE WAS A PROCESS THEY WENT THROUGH AFTER
TO COMMUNICATE WITH CITIZENS BANK TO SEE IF AGAIN IF THERE WAS ANYTHING THAT CAN BE DONE TO ADDRESS IT COULD IT EVENT AS EARLY AS TUESDAY IT COULD HAVE BEEN I DON'T WE KNOW I MEAN
THIS WAS I MEAN JULY 3RD WAS 42 DAYS AGO AND WE KNOW THIS HEARING WAS FILED 37 DAYS AGO. SO I MEAN THE CITY KNEW I MEAN YOU WOULD WANT TO KNOW ANYWAY, I WOULD THINK. BUT THE CITY KNEW THAT THIS YOU
KNOW, CITY COUNCIL WAS GOING TO BE HOLDING A HEARING TO GET THESE ANSWERS RIGHT. SO IT IT COULD HAVE BEEN AS EARLY AS TUESDAY THAT THE CITY OF BOSTON KNEW THAT THERE COULD
BE A PROBLEM COMING UP ON THE LONG WEEKEND AND WE'RE NOT GOING TO SAY ANYTHING TILL THURSDAY AFTERNOON. YEAH, I THINK IN THIS INSTANCE IT WAS REALLY ABOUT TRYING TO
PROPERLY UNDERSTAND THE SCALE AND SCOPE OF THE PROBLEM, TRY TO FIX IT BEFORE I MEAN I CAN APPRECIATE A LITTLE BIT OF THAT RIGHT? BUT I'M THINKING LIKE TEENAGERS, RIGHT?
OH, MOM'S COMING HOME. LET'S TRY TO LIKE GET IN AS LIKE AS LITTLE TROUBLE AS WE CAN HERE. LET'S FIX SOME OF IT. BUT LIKE, SHOULDN'T WE ALWAYS OR AT LEAST BE NOTIFYING LIKE THE CITY COUNCIL LIKE THERE IS
A PROBLEM AND THIS IS COULD BE A REALLY BIG PROBLEM BECAUSE EVEN THOUGH 75% GOT PAID ON TIME NOT THAT I'D EVER WANT TO SEE BUT THAT MEANS 14,250 CITY
EMPLOYEES DID IT RIGHT SO NO, SORRY, THAT'S WRONG. THAT'S 74. THAT'S HOW MANY DID GET PAID ON BUT THAT'S STILL THOUSANDS OF LIKE WHAT? LIKE 4000 MORE THAN 4000 CITY
EMPLOYEES DIDN'T GET PAID AND WE KNEW ON TUESDAY AND THEN ON WEDNESDAY WE DEFINITELY KNOW WHEN AND ON THURSDAY AND WHEN THE LETTER WENT OUT. I KNOW THE COUNCIL WEBRE JUST
REFERENCE I THINK EVEN HAS IT PRINTED OUT IN FRONT OF THEM. DID IT EXPLAIN THEN THAT THERE PLEASE LET US KNOW IF YOUR CHECK DOESN'T GET DEPOSITED PLEASE REACH OUT TO THIS CITY
DEPARTMENT. HERE'S THE EMAIL AND PLEASE LET US KNOW THAT IF THERE ARE FEES OR ANY FINANCIAL BURDEN PLACED ON YOU BECAUSE OF OUR ERROR WE WILL MAKE SURE WE MAKE YOU
WHOLE. WAS THAT PART OF THE LETTER THAT WE SENT OUT TO CITY EMPLOYEES? SO THAT SPECIFICALLY WAS NOT PART OF THE LETTER. WE DID INCLUDE INFORMATION TELLING EMPLOYEES TO CONTACT
EITHER THEIR H.R. DEPARTMENT OR TO SUBMIT A TICKET THROUGH OUR BEACON PORTAL AND LIKE CHIEF LAWRENCE WAS SAYING, COULD WE HAVE NOTIFIED FOLKS ON WEDNESDAY?
YES. AND I THINK THAT EARLY BUT WE PROBABLY WOULD HAVE HOW MANY HAD VERY LITTLE INFORMATION TO GIVE YOU AT THAT SO YOU WOULD HAVE THE INFORMATION THAT BUT I MEAN WE'RE ALL ADULTS HERE.
I MEAN I THINK THAT'S DUMBING DOWN OUR CITY FOR US ASSUMING THAT THEY CAN'T MAKE THEIR OWN DECISIONS LIKE HEY, JUST GIVING YOU A HEADS UP THIS MAY HAPPEN. SO IF YOU NEED TO CALL YOUR MOM
TODAY BECAUSE YOUR DAUGHTER'S DEPOSIT LIKE COUNCIL FLYNN STORY OR YOU NEED TO MAKE SURE THAT YOU FILL YOUR GAS TANK NOW BEFORE YOU DRIVE TO THE CAPE AND REALIZE YOU CAN'T CHECK
INTO THE HOTEL BECAUSE THAT WAS ANOTHER STORY I HEARD LIKE THEIR FUNDS WEREN'T GOING TO BE AVAILABLE. THERE WAS A FAMILY WHO WAS ON A HOCKEY TOURNAMENT AND SHE'S LIKE I'VE GOT TO FIGURE OUT WHO CAN VENMO ME MONEY? I CAN'T CHECK OUT OF THE HOTEL
. I MEAN IT WAS BUT WE COULD HAVE WARNED PEOPLE EVEN THOUGH IT MAY NOT HAVE HAPPENED TO 75% OF YOU AND AT THAT POINT WE
DIDN'T KNOW HOW MANY BUT RIGHT . SO HOW MANY TICKETS WERE ENTERED? VERY FEW. RIGHT. BECAUSE DO WE THINK THOUGH THAT'S BECAUSE IT WASN'T MADE CLEAR TO OUR CITY FOR US THAT
THIS IS SOMETHING LIKE DID WE FOLLOW UP SAYING HEY, IT SEEMS AS THOUGH VERY, VERY LIKE ONLY 20 YOU SAY YEAH WE WERE SEE SO
WE RECEIVED 20 REQUESTS FOR WAIVER OF OVERDRAFT FEES AND ARE WE GOING TO SEND OUT ANOTHER COMMUNICATION SAYING OKAY SO PEOPLE BECAUSE SINCE
THEN MAYBE THEY NEVER WENT BACK AND READ THE NOW THAT YOU WERE IN AT THAT POINT YOU DIDN'T KNOW I MEAN I DIDN'T GET THE LETTERS IN THE MAIL AND YOU NEVER LIKE A THIN ENVELOPE FROM
YOUR BANK AND THEN I GOT TO AND THEN WHEN I GOT THE THIRD ONE I'M LIKE I THINK IT'S THE SAME ONE THING THEY KEPT TRYING TO PAY THIS ONE BILL WHICH WAS $47 BILL AND I GOT A $75 IN FEES. RIGHT.
IT HAPPENED TO A LOT OF PEOPLE ARE WE GOING TO LET CITY EMPLOYEES KNOW LIKE WE TOLD YOU THEN YOU MAY NOT HAVE NOTICED BUT HERE IS IT PUT IN A TICKET AND WE CAN TRY LIKE IF YOU HAVE
PROOF WITH YOUR BANK STATEMENT THAT THERE WERE FEES FROM THAT WEEKEND OF NOT GETTING PAID YET CERTAINLY IF THERE ARE ANY EMPLOYEES WHO HAVE RECEIVED OVERDRAFT FEES THEY SHOULD PUT IN A TICKET AND WE WILL WORK
WITH THEM TO WAIVE THEM. OKAY. YOU MENTIONED AND I TOTALLY CAN APPRECIATE THAT IT WAS THE BACK OF THE NAPKIN THE DAY OF AND SCRAMBLING THROUGH THE FRIDAY
INTO SATURDAY BECAUSE THERE WAS A CHANCE THAT MAYBE SOME WOULD GET IT SATURDAY BUT NOW LIKE I MENTIONED 42 DAYS LATER ARE WE
GOING TO GET A FULL REPORT OF EXACTLY HOW MANY LIKE TO GET THE ACTUAL DATA BECAUSE LIKE YOU'RE SAYING THAT IT'S STILL KIND OF THE DAY OF THIS IS WHAT YOU THE BEST YOU COULD DO WITH
THE NUMBERS? ARE WE GOING TO GET A A REAL ACCURATE NUMBER NOW THAT WE'RE A FEW PAYCHECKS OUT SINCE THEN? PROBABLY NOT BECAUSE THAT'S GOING TO BE DEPENDENT ON INDIVIDUAL BANKS AND ACCOUNTS.
RIGHT. AND LIKE I SAID, HUNDREDS OF BANKING INSTITUTIONS WE DON'T HAVE AS A CITY VISIBILITY INTO WHAT HAPPENS TO THAT PAYROLL FILE AFTER IT GOES TO CITIZENS AND CITIZENS SENDS IT
OUT TO THE SUB RECIPIENT BANKS. SO ALL I WAS DOING ON THE FRIDAY AND SATURDAY THAT'S ALL YOU COULD DO THEM. BUT NOW THAT WE CAN LOOK BACK, ARE WE GOING TO ASK EMPLOYEES THROUGH WHATEVER SYSTEM IS THE
MOST EFFECTIVE WAY TO COMMUNICATE? PLEASE LET US KNOW IF YOU DIDN'T BECAUSE THAT WOULDN'T DO YOU WANT THAT INFORMATION OR DO YOU SURE. JUST MOVE. I'M JUST OUT.
LIKE WHAT? THE ROLES THAT YOU PLAY DO YOU WANT TO FIND OUT LIKE WHAT WAS THE ACTUAL IMPACT OF IT? WE ALREADY KNOW WHAT HAPPENED BUT DO YOU WANT TO HAVE REAL
DATA KNOWING LIKE WHEN WE MADE THIS ERROR IT HAPPENED LIKE WE'RE GOING TO MOVE ON? WE HAVE TO WE DID RIGHT BUT WHAT IMPACT DID IT REALLY HAVE INSTEAD OF JUST KIND
OF GENERALLY ASSUMING LIKE MAYBE 75% AND MANY EMPLOYEES HAVE THEIR CHECK DEPOSITED INTO SEVERAL DIFFERENT ACCOUNTS. RIGHT? SO ONE EMPLOYEE COULD HAVE TWO, THREE OR FOUR DIFFERENT BANKS THAT YOU KNOW, AUTOPAY AND
OTHERS. SO BUT ARE WE GOING TO TRY TO GET A REAL ANSWER ON THAT SO THAT WE HAVE THAT AND IT WOULD HAVE TO TAKE COMMUNICATION WITH EMPLOYEES TO WANT TO SHARE IF THAT HAPPENED TO THEM?
YEAH. AND IT WAS SUCH A ROLLING TARGET OVER THE WEEKEND. RIGHT. SOME FOLKS WERE GETTING IT ON FRIDAY, SOME PEOPLE WERE GETTING IN ON SATURDAY. SO IT WAS KIND OF CHANGING AND EVOLVING OVER THE WEEKEND. I THINK WHAT WAS MOST IMPORTANT
TO US TO KNOW IS THAT EVERYONE WAS PAID BY THE MONDAY, RIGHT? THE NEXT BUSINESS DAY. SO KIND OF WHEN THAT IMPACT HIT SOMEONE OR WHEN IT DIDN'T, I THINK WE WERE MOST FOCUSED ON
UNDERSTANDING THAT EVERYONE WAS PAID 100% AGREE. BUT THE MONDAY AFTER THE LONG WEEKEND AND WE KNEW EVERYONE AT THAT POINT GOT PAID WAS MANY WEEKS AGO SO I'M NOT TALKING
ABOUT WHILE WE WERE IN THAT WEEKEND AND WE WERE TRYING TO FIGURE IT OUT. I'M SAYING NOW THAT WE ARE THIS MANY DAYS OUT, 42 DAYS OUT FROM THERE AND WE'RE NOT SCRAMBLING
AND DOING OUR BEST AND SACRIFICING WEEKEND WITH ALL OF THE THINGS YOU'VE ALREADY DESCRIBED THAT YOU KNOW, TOP ADMINISTRATORS WERE DOING LIKE SO WE'RE WEEKS AWAY I'M SAYING LIKE NOW THAT WE'RE IN AUGUST.
SURE. AND I JUST WANT TO SAY LIKE LIKE YOU SAID OUR EMPLOYEES ARE ARE THEY THEY COMMUNICATE WITH US ALL DAY EVERY DAY. THEY ARE REALLY AWARE OF THE SYSTEMS THAT THEY HAVE IN PLACE
SO CERTAIN TO GET IN TOUCH WITH US. WE GET THOUSANDS OF TICKETS EVERY DAY SO CERTAINLY ALL EMPLOYEES CAN PUT IN THE TICKET OR DO ALL OF THE MANY WAYS THEY TYPICALLY GET IN TOUCH WITH US
TO, LET US KNOW THAT THEY HAVE OVERDRAFT FEES AND WE'VE WORKED WITH THEM OVER. RIGHT. THANK YOU. THANK YOU, COUNCILOR FLYNN. THANK YOU, MR CHAIR.
AND MAYBE TO FOLLOW UP ON COUNCILOR MURPHY'S QUESTIONS WAS THERE AFTER ACTION REPORT DONE ABOUT THE SITUATION?
WHAT EXACTLY HAPPENED, WHY IT HAPPENED AND STEPS GOING FORWARD TO PREVENT IS THERE A WRITTEN DOCUMENT ON THAT NOT NOTICE MAYBE THERE'S SOMETHING
IN TREASURY OR AUDITING NOT A FORMAL WRITTEN DOCUMENT AS YOU DESCRIBED I THINK IN PREPARATION FOR THIS HEARING IT WAS HELPFUL FOR US TO SORT OF LAY OUT EXACTLY WHAT HAPPENED AND THEN WHAT WE'RE
DOING GOING FORWARD. SO WE DO HAVE, YOU KNOW, WRITTEN DOCUMENTATION OF THAT NOW. SO AS AS A CITY COUNCILOR I'M REQUESTING THAT THE CITY
OFFICIALS PRODUCE A WRITTEN DOCUMENT ABOUT EXACTLY WHAT HAPPENED, WHY IT HAPPENED, HOW WE MOVE FORWARD INCLUDING COMMENTS FROM HERE BUT A
WRITTEN DOCUMENT TO KIND OF CAPTURE THIS ENTIRE INCIDENT IS THAT IS THAT A REASONABLE REQUEST THAT I'M MAKING? YEAH. YEAH, ABSOLUTELY. SO YOU WOULD COMMIT TO DOING
THAT? SURE. YES, WE CAN SUBMIT A REPORT. WHEN DO YOU THINK THAT WOULD PLACE WE CAN TALK TO OUR TEAMS AND YOU KNOW SHOULDN'T BE TOO
TIME CONSUMING BUT THEN MY MY OTHER POINT AND OBVIOUSLY I'M NOT SINGLING OUT COUNCILOR WEBER BUT THERE'S THERE'S A LABOR LABOR LAWYER.
SO IF THIS INCIDENT HAPPENED IN THE PRIVATE SECTOR, WOULD THERE BE A WOULD THERE BE SOME TYPE OF INVESTIGATION FROM ANY
APPROPRIATE INVESTIGATIVE AGENCY SUCH AS YOU KNOW, SUCH AS THE COMMONWEALTH OF MASSACHUSETTS, SUCH AS THE FEDERAL GOVERNMENT?
I'M SAYING THAT I GUESS MY POINT IS DID BOSTON DO ANYTHING LEGALLY WRONG IN THIS ISSUE? I'M NOT AN ATTORNEY SO I DON'T
I CAN'T COMMENT ON DOES ANYBODY HAVE A COMMENT ON THAT SO SO IF IF A PRIVATE SECTOR COMPANY DID THE SAME EXACT THING IN BOSTON,
WOULD THERE BE AN INVESTIGATION FROM STATE OFFICIALS? I DON'T KNOW THE ANSWER TO THAT . I DON'T THINK ANY OF US ARE THE RIGHT PEOPLE TO ANSWER THAT QUESTION. I HAVE NO I'M NOT SURE.
OKAY. I JUST DON'T KNOW IF WHAT HAPPENED HERE IS IS POTENTIALLY A VIOLATION OF THE LAW.
I KNOW IT'S A MISTAKE BUT DOES THAT DOES THAT MEAN IT'S ALSO A VIOLATION OF THE LAW NOT NOT TO PAY YOUR EMPLOYEES ON TIME?
COULD THAT COULD THAT QUESTION BE COULD THAT QUESTION ALSO BE PART OF THE WRITTEN AND MAYBE WE CAN DO A LITTLE BIT
OF RESEARCH ON YOU KNOW, IS IT APPROPRIATE FOR SOMEONE TO DO AN OUTSIDE INVESTIGATION ON ON THIS? IS THAT SOMETHING YOU WOULD WELCOME? I AGAIN, I DON'T THINK ANY
OF US ARE REALLY IN A GOOD POSITION TO COMMENT ON LEGAL ISSUES LIKE THAT. SO WE CAN CERTAINLY TAKE THE QUESTION BUT I'M NOT ABLE TO COMMENT BUT I DON'T THINK THERE'S ANY AMBIGUITY ABOUT
WHAT HAPPENED HERE IN TERMS OF INVESTIGATION. I THINK WE'RE VERY CLEAR ON THE PROCEDURES THAT WENT WRONG AND THE STEPS WE NEED TO TAKE TO MITIGATE THEM. RIGHT. WE KNOW WHAT WENT WRONG.
IT WASN'T INTENTIONAL. BUT DOES THAT ALSO MAKE IT POTENTIALLY ANY TYPE OF VIOLATION OF STATE LAW?
I DON'T KNOW. THAT'S JUST I DON'T THINK ANY OF US SHOULD BE COMMENTING ON THAT. BUT WHO WOULD WOULD BE ABLE TO ANSWER THAT QUESTION?
I DON'T I DON'T KNOW. I MY GUESS IS SOMEONE FROM THE LAW DEPARTMENT. BUT IS THAT A QUESTION YOU COULD FORWARD TO THE LAW DEPARTMENT ON BEHALF OF THE CITY COUNCIL? YES. OKAY.
THANK YOU, MR CHAIRMAN. THANK YOU, COUNSELOR. COUNSELOR IF IT'S OR ANY FOR JUST ONE. OKAY. JUST A CLARIFYING QUESTION ON SOMETHING EARLIER ABOUT THE
COMMUNICATION THAT WENT OUT TO ALL PEOPLE BECAUSE I DON'T I DON'T BELIEVE I RECEIVED ANYTHING EITHER. BUT SO JUST TO I WANT TO MAKE SURE I UNDERSTOOD THAT NO COMMUNICATION WENT OUT TO ALL CITY EMPLOYEES THAT OFFERED
STEP A COMMUNICATION WENT OUT TO ALL CITY EMPLOYEES THAT SAID THIS IS WHAT TO DO IF YOU ARE NOT PAID. HERE ARE THE STEPS TO TAKE WHAT THE COMMUNICATION SPECIFICALLY SAID IS IT SHOULD YOU HAVE ANY
QUESTIONS TO WANT TO PUT IN A BEACON TICKET OR CALL YOUR REPRESENTATIVE WITH A PHONE NUMBER THAT WAS INCLUDED THERE? GOTCHA. AND SO WE WOULD HAVE GOT THAT TOO. I WAS THAT THAT WAS ALL BY EMAIL.
BY EMAIL EVERY CITY EMPLOYEE SHOULD HAVE RECEIVED THAT. I CAN SPECIFICALLY LOOK INTO WHY YOU MAY NOT NO, NO NO I'M NOT SAYING I DIDN'T IT VERY WELL COULD HAVE THAT'S I REMEMBER RIGHT THAT'S RIGHT. I JUST WANT TO MAKE SURE I WILL
DOUBLE CHECK MY OWN AND REREAD WHAT IT SAID AND I WILL LET YOU KNOW IF I DID NOT GET IT FOR WHATEVER REASON. THANK YOU.
THANK YOU, COUNSELOR. COUNSELOR WEBER AND I MEAN I GUESS JUST A COUNSELOR FLYNN'S POINT I MEAN AND I THINK IT
JUST ILLUSTRATES THE SERIOUSNESS OF THIS DISCUSSION IS YOU KNOW, THERE COULD BE LEGAL ISSUES, YOU KNOW, AND IT'S CERTAINLY THAT'S A POSSIBILITY.
SO YOU KNOW, I THINK IN TERMS OF MAKING SURE THAT WE PAY PEOPLE ON TIME IS VERY IMPORTANT AND OF YOU KNOW, I HOPE THAT THAT WE WILL MAKE
SURE THAT NOTHING LIKE THIS HAPPENS AGAIN, THAT PEOPLE GET PAID KNOW WHEN THEY'RE SUPPOSED TO BECAUSE THAT'S WHAT THE LAWS ARE THERE TO ENSURE THAT PEOPLE GET THEIR WAGES ON TIME.
SO THE THINGS I AM GOING TO GIVE THE PANEL AN OPPORTUNITY TO GIVE CLOSING REMARKS I DON'T THINK WE HAVE ANYTHING PREPARED AND THANKS AGAIN FOR GIVING US
THE OPPORTUNITY TO COME IN AND TALK ABOUT THIS. I APPRECIATE IT VERY MUCH AND I THINK I'LL JUST SPEAK ON BEHALF OF MY CO PANELISTS HERE OBVIOUSLY DEEPLY REGRETTABLE
AND LIKE TO APOLOGIZE TO THE EMPLOYEES OF THIS IMPACTED. THANK YOU. OH, GOOD. ALL RIGHT. THANK YOU SO MUCH FOR FOR BEING HERE. THANK YOU SO MUCH FOR TODAY'S
ANSWERS AND TODAY'S DISCUSSION IS HEARING ON DOCKET NUMBER 1371 IS ADJOURNED.
THANK