New Bedford Audit Committee Meeting Summary - October 21, 2026

[The Audit Committee of the New Bedford City Council met on Wednesday, October 21, 2026, at 7:01 PM in the Council Chambers. Chair Sean Oliver presided over the meeting, joined by voting members Councilors Joseph Lopes and Ryan Pereira. Councilors-at-Large James Roy and Shane Burgo attended as non-voting members. The committee addressed three items: the status of monthly expenditure reports, the Mayor's recent staff hire, and the City's health insurance broker fees. The meeting concluded at 8:41 PM.]

Discussion Items

Item 1: Monthly Expenditure Reports (Matter ID #1155)

• City Auditor Quillan Lowney reported significant challenges in generating the monthly reports due to recent staffing reductions and the departure of the CFO. He offered to provide the committee with simplified "Munis printouts" and a cleaner version for the public website lacking narrative analysis until the office stabilizes. He also noted a change in invoice recording (using effective dates) could cause the numbers in any report to fluctuate over time.
• Councilor Pereira emphasized the transparency value of the reports. He requested a 5–6 month financial look-back for late December or January.
• Councilor Lopes requested that the reports highlight any line item exceeding 75% of the annual allocation.
• Outcome: Tabled. The City Auditor agreed to continue providing the requested data in simplified formats.

Item 2: Review of Mayor's New Staff Hire (Matter ID #1460)

• Chief of Staff Neil Mellow attended. He defended the necessity of filling the Special Assistant to the Mayor position, arguing the office requires full staffing despite budget cuts from an original personnel budget of $826,998. He disputed that the Council's cut to the position was binding under Massachusetts General Law Chapter 44. Mellow stated the office currently has a spending balance of $356,000 and is not projecting an immediate deficit.
• Councilor Burgo, the motion's author, argued the Council specifically targeted this position based on Mellow's representation during budget hearings that the role would be vacant on July 1. He asserted the intent was to capture savings by not filling an already vacant position.
• Councilor Pereira echoed this, stating he reviewed the budget video and confirmed Mellow's statements created the impression the position would not be filled. He accused the Administration of misleading the Council. Pereira also raised concerns about the use of the "Chief of Staff" title and requested the Mayor submit an ordinance to formally create a Chief Operating Officer position subject to Council confirmation.
• Councilor Lopes noted that Q1 spending (~$225,000) appeared to exceed a straight-line quarterly pro-rata of the budget, raising stewardship concerns.
• Outcome: The committee voted to refer the matter to the full City Council with a recommendation of no further action. (Voice vote, motion by Pereira/Lopes). Mr. Mellow agreed to relay the request for a formal COO ordinance to the Mayor.

Item 3: Health Insurance Brokers' Fees and Commissions (Matter ID #1462)

• Director of Personnel Jose Gouveia explained Lockton's compensation structure: a flat $40,000 annual fee (frozen for three years) plus commissions from insurance carriers, totaling approximately $300,000 annually (0.5% of total plan value). He defended the arrangement, stating it is cost-effective. A discrepancy arose regarding the contract length; Director Gouveia initially stated one year remained but later agreed with the Chair's summation that two years remained.
• Councilor Pereira requested a detailed three-year accounting of all commissions and contracts. He argued the city's fiscal crisis necessitates scrutinizing every cost, including broker fees, and questioned whether higher expenditure on consulting could yield net savings. He advocated for an open RFP process.
• Councilor Lopes questioned whether a fully fixed-fee contract could be cheaper than the existing commission structure.
• Director Gouveia committed to providing the requested documentation within three weeks.
• Outcome: Tabled. The Personnel Director is to compile a comprehensive report on all commissions and contracts for the committee's review before further discussion.

Key Outcomes

• Item 1 (Monthly Reports): Tabled. Auditor to provide simplified expenditure reports and a mid-year review.
• Item 2 (Mayor's Staff Hire): Referred to full Council with a recommendation of no further action.
• Item 3 (Health Insurance Brokers): Tabled. Director of Personnel to provide a full accounting of broker fees and contracts within three weeks for committee review.