New Bedford Audit Committee Meeting – October 23, 2026

The New Bedford City Council Audit Committee met in Council Chambers, Room 214, City Hall, 133 William Street, at 7:01 p.m. Chair Sean Oliver (Ward 3) presided with Councilors Joseph Lopes (Ward 5) and Ryan Pereira (Ward 6). Councillors-at-Large James Roy and Shane Burgo were also present as non-voting participants. City Auditor Quillan Lowney, Chief of Staff Neil Mello, and Director of Personnel Jose Gouveia addressed the committee. The meeting covered three written motions: monthly departmental expenditure reports, the mayor’s new staff hire, and health insurance broker/consultant fees and commissions. Note: the agenda and transcript open with the date October 21, 2026, while the date provided for this summary is October 23, 2026.

Discussion Items

• Monthly expenditure reports (Matter #1155): The committee removed from the table a motion by Councilors Pereira, Oliver, and Morad requesting monthly reports for expenditures from every department and account. Auditor Lowney said his office is facing challenges from the decentralization of accounts payable, a reduced team, and the retirement of assistant auditors, which delayed the reports. He offered to provide the committee with raw Munis printouts and to publish a cleaner, simplified version without narrative write-ups on the city website. Councilor Pereira asked for an accurate five- or six-month financial lookback by mid-December or early January. Lowney cautioned that figures can change because invoices are now recorded at the effective service date, so prior-period numbers may be revised. Councilor Lopes asked Lowney to highlight any line item exceeding the expected percentage of the year, for example anything over 75 percent in the fourth quarter. The committee then tabled the item.

• Review of the mayor’s new staff hire (Matter #1460): Councilor Burgo’s motion asked the committee to review the position, compensation, funding source, and hiring process for the mayor’s newest employee. Chief of Staff Neil Mello explained that the mayor’s office hired a special assistant to the mayor, classified as an administrative manager in the city’s Unit C table at an M9 grade, with a salary of about $66,000. The position replaced Melissa Sears and provides scheduling, logistics, and direct support to the mayor. Mello said the mayor’s office has six staff; the mayor’s proposed budget already reduced personnel costs by about $67,000, and the council cut the mayor’s personnel budget by roughly $245,000, which he called a 35 percent reduction. He said the personnel budget was left at $582,000, with about $356,000 remaining after roughly $225,000 in first-quarter spending, and that the office was not currently projecting a deficit. He argued that council budget reductions limit appropriation authority but do not directly order the elimination of specific positions, citing Department of Revenue guidance, and that the mayor viewed the cut as unfair and targeted because following the council’s stated intent would require laying off an existing employee rather than eliminating a vacant position.

  Councilor Burgo responded that the council made its cut after Mello presented the administrative manager position as one that would not continue into the new fiscal year, so the council’s intent was to avoid filling a vacancy, not to fire a new hire. He also rejected the claim that the mayor’s office was singled out, citing a similar council cut involving a police department chief-of-staff title. Mello disputed that the position was vacant on July 1, saying Melissa Sears’ departure date was undetermined and that she transitioned out on a part-time basis before the new hire was recruited.

  Councilor Pereira said he had watched the budget presentation and believed Mello had indicated the position would not be filled on July 1; he expressed disappointment that the explanation had changed. Mello acknowledged possible miscommunication but denied an intent to mislead. Councilor Lopes asked for an actual first-quarter spending breakdown for the mayor’s office, and Mello and Lowney agreed to provide it. Pereira also questioned the informal role of Chief Operating Officer Christina Conley and asked whether the mayor would consider formalizing the COO position through an ordinance with council confirmation. Mello said the mayor would be open to considering it. Pereira said he could not support funding an informal COO or chief-of-staff title without a formal position and council oversight, but would have a different conversation if a formal ordinance were proposed.

• Health insurance broker and consultant fees (Matter #1462): Councilor Pereira’s motion requested a review of the city’s health insurance broker fees, consultant fees, and all commissions paid over the last three fiscal years. Personnel Director Jose Gouveia provided an overview of Lockton’s role. He said Lockton has a flat contract fee of $40,000 per year, frozen for three years, with about two more years remaining under the contract. He described additional commissions Lockton receives through other positions, including 1.17 percent on MedEx, a percentage on Boston Mutual based on participants, and 5 percent on stop-loss coverage above the threshold. Gouveia estimated Lockton’s total compensation at roughly $300,000 annually, equal to about 0.5 percent of the overall plan value, and said that is low compared with roughly $300,000 to $400,000 for similar work at comparably sized municipalities. He described Lockton’s services as including market analysis, regulatory compliance, annual RFPs, contract renewals, plan design proposals, and support for Public Employee Committee meetings.

  Gouveia also outlined cost-saving options that had been discussed with the PEC and administration: raising the family deductible from $875 to $1,000 and the individual deductible from $375 to $500, moving new employees to a 70/30 or 65/35 contribution split rather than the current 75/25 split, and adding an employee-plus-one coverage tier. He said an opt-out program was considered but not recommended because of the age mix of covered employees. He also noted that Fall River offers a dental plan and New Bedford does not, and that implementing a dental/vision benefit would require council follow-through.

  Councilor Pereira asked for an executive summary explaining how Lockton works on the city’s behalf, all relevant contracts including Trustmark and Boston Mutual, a breakdown of all commissions for the last three years, and information on the Blue Cross Blue Shield relationship. Gouveia said the city has been with Blue Cross Blue Shield since 2015 and that the next RFP process for carriers should begin around mid-year. He agreed to compile the requested information within three weeks, citing open enrollment as the reason for the timeline. Committee members discussed whether a bundled fixed-fee arrangement could be cheaper or more expensive and agreed to review the information at a future meeting.

Key Outcomes

• Item 1 was tabled; Auditor Lowney agreed to provide raw Munis reports to the committee and simplified public reports, with a target lookback in December or January.
• Item 2 was referred to the full City Council for no further action by a voice vote, after a motion by Councilor Pereira seconded by Councilor Lopes. The auditor and chief of staff were asked to provide a detailed first-quarter spending breakdown for the mayor’s office.
• Item 3 was tabled; Director Gouveia agreed to provide a comprehensive package on Lockton, carrier contracts, and commission data within three weeks, with further committee discussion planned for the next month.
• The committee adjourned at 8:41 p.m.