City of Central Falls
Special City Council Meeting
City Hall Council Chambers
Wednesday, May 30, 2001
At 6:30 p.m.
A special meeting of the Central Falls City Council was held on the above date in the City Hall Council Chambers at 6:37 p.m.
Councilman Lazieh
Councilman Robichaud
Councilwoman Canavan
Councilman Leger
Councilman Noury
Quorum present.
Council President Noury presided and led the assembly in the Pledge of Allegiance.
Deferred to later in the meeting.
Exemption 42-46-5, Subsection 1 Job Performance of Independent Auditor Cayer, Prescott, Clune Chatellier.
Council President Noury stated that he was advised by the City Solicitor that an Executive Session would not be appropriate for this inquiry since the auditor is not an employee of the City as provided for in 42-46-5.
Motion to table was made by Councilman Leger and seconded by
Councilman Lazieh. All Agreed. So Voted.
A. Thanking Julianne Barsoum for her service of the Juvenile Hearing Board
B. Thanking Sister Mary William for her service of the Juvenile Hearing Board.
Motion to approve collectively was made by Councilman Lazieh and seconded by Councilman Robichaud. All Agreed. So Voted.
A.)- Letter from Chief DeNaro 5/22/2001 to Councilman Lazieh related to request for budget information.
B.) -Letter to Mayor Lee Matthews, City Solicitor James Briden, and Tax Assessor John Gancarski re: Assessment update.
Motion to accept collectively and place on file was made by Councilman Leger.
Councilwoman Canavan asked if Item B was in the packet.
Councilman Lazieh responded that he called to have it listed on Friday and submitted the letter in the Office today.
The City Clerk responded that she was not aware that the letter was for this meeting and prepared it for the next meeting.
Councilwoman Canavan stated that since Item B is not in the packet she motioned to table Item B.
Council President Noury stated that there is a motion on the floor.
Councilman Leger withdrew his motion.
Councilman Lazieh distributed the letter.
Councilwoman Canavan moved to accept Item A and place it on file. Seconded by Councilman Leger.
Council President Noury read the letter from Chief DeNaro and commented that he requested that the Deputy Finance Director be available for this meeting. He stated that he received a response from her stating that all her function with regards to preparing the budget was to provide data information and that she did not meet with Department Heads to discuss their budget. He stated that he wondered if maybe this was a little contradictory in that the letter directs the Council to seek all the information in the Finance Department when the Deputy stated that her role was minute. He said this seem to be in conflict.
Councilman Leger stated that at the last meeting a few of the Council members had a question on a line item and how that line item was accounted for. He said that he requested that information and was told that due to the lack of office staff the office could not provide that information in the time requested by him. He asked what is the Council suppose to do in order to get the information if they don't have time in the office.
Council President Noury commented on the procedures of Mr. Kuzmiski when he was finance director but perhaps the Council would have to call in each department head to inform the Council of their budget request. He stated that he proposed to have meetings next Monday and Wednesday and that he would call the Chief of Police and Chief of the Fire Department to schedule a meeting with them.
Councilwoman Canavan stated that it is usually the Finance Department that answers questions related to revenues. She asked who would answer those questions now.
Council President Noury stated that he would think that the Mayor would be able to respond to those questions.
Councilman Lazieh stated that he also wrote a similar letter to the Fire Chief asking for the same information and that he was advised by the Chief that the information was in the Finance Office.
Councilman Lazieh stated that this is the same information that was requested last year and that the Council is headed down the same road and that this will be a difficult process. He stated that the Council needs to know where the current budget is, what is proposed by the individual department head and what the changes are in the proposed budget.
Council President Noury stated that he contacted the Tax Assessor and asked him to attend a meeting to answer questions on the revaluation. He stated that he would ask questions about the revenues, the assessments etc.
On the motion all agreed. So Voted.
Motion was made by Councilwoman Canavan to table Item B seconded by Councilman Leger.
All Agreed. So Voted.
A) An Ordinance Establishing a Restrictive Receipt cash, Special Reserve Account. (Introduced by Councilman Noury)
So Introduced.
A) An Ordinance Amending Chapter 6 Article III (Bingo) (Introduced by Councilwoman Canavan)
Councilman Lazieh asked what the change is over the present language.
Councilwoman Canavan responded that an annual report to the City goes to the State and restrictions
Listed unnecessary language and substituted it with to comply with state law. She stated that it's basically a housekeeping measure.
Motion to approve was made by Councilman Lazieh and seconded by Councilman Robichaud. All Agreed. So Voted.
B) An Ordinance Amending Chapter 6 Article IV "Mechanical & Electronic Amusement Devices, Amusement Centers, Billiard/Pool Room (Introduced by Councilwoman Canavan)
Councilwoman Canavan explained that this also is a housekeeping measure since this was in the entertainment section and moved it to the amusement sections.
Motion to approve was made by Councilman Lazieh and seconded by Councilman Leger.
Councilman Robichaud asked what would happen this year relative to the renewal of the license.
The City Clerk explained that the practice was of renewing the license was already in place and that this would just keep it in conformity with the licensing process.
On the motion all agreed. So Voted.
C) An Ordinance Establishing a 2nd Assistant City Solicitor. (Introduced by Council President Noury)
Council President Noury explained the Ordinance. He asked the City Solicitor that if there is a thin line through the word assistant in a few places in the ordinance does this or if he wanted to delete the word
assistant and just have legislative solicitor does this change the intent of have a second assistant city solicitor.
Council President Noury explained his intent to the Solicitor.
Solicitor Briden asked what does it mean by advertise.
Solicitor Briden stated that the fact that a line is draw through it doesn't change the intent.
Councilman Lazieh asked if the Council President intended to amend the Ordinance.
Council President Noury stated that he intended to change it because the way it is written would make one think that there is a first legislative solicitor.
Motion to amend to delete the word "assistant" throughout the ordinance was made by Councilman Lazieh and seconded by Councilwoman Canavan and Councilman Leger.
On motion 4 yes 1 opposed. (Councilman Robichaud voted no).
Council President Noury asked Councilman Robichaud if he is opposed to dropping the word assistant in the ordinance. Councilman Robichaud responded that he's opposed to the whole ordinance.
Motion to approve as amended was made by Councilwoman Canavan and seconded by Councilman Lazieh.
Councilman Robichaud stated that this Ordinance should not be acted on until a decision is made by the Judge and said that this should be tabled. He asked if this would be legal.
City Solicitor Briden stated that he has been told that Judge Silverstein is having a hearing on Friday on the issue. He stated that the Judge might make a decision on Friday.
Council President Noury responded that the Solicitor has not answered Councilman Robichaud's question as to whether this is legal.
Councilman Robichaud's question is can the Council make an ordinance before the Judge makes a decision.
Solicitor Briden stated that one approach would be to give it first passage and then wait to see what the judge's decision is before final passage or the Council could table it.
Council President Noury explained that what the Judge has before it is a request for a preliminary injunction on 5 legal questions, whether the investigative committee is legal, whether the Council has a right to hire an attorney, whether the Council has a right to amend the ordinance, whether the Council has a right to vacate and whether the Council has the right to hire outside legal counsel. He said those are for preliminary injunctions. He related that preliminary injunctions are very difficult to get granted. He said that the Judge may say the he will grant 2 on 3 of the questions and the he will not grant on 2 others but that he would want to hear the arguments at a later date in which case this would have to be adjudicated. He said that this Ordinance has nothing to do with what's before the Judge and that Mr. Oliverio will still be considered as far as the Council is concerned, until it is ruled otherwise, an employee of the City. He stated that the City Council has a right, as it was proven in the past, to create other officers as it sees fit. He referred to Attorney Newman and the Garvey Administration. He stated that all this is doing is creating a secondary position, which has no impact whatsoever on the question before the judge. He said if the Council feels that it wants to create another officer of the City it has the power to do that if it provides the appropriation in the operating budget to go along with that officer. He stated that he sees no reason why it's illegal.
Councilman Lazieh commented.
Motion to approve as amended was made by Councilman Lazieh and seconded by Councilman Leger.
| Councilman Lazieh | yes |
| Councilman Robichaud | no |
| Councilwoman Canavan | yes |
| Councilman Leger | yes |
| Councilman Noury | yes |
Motion carried 4 yes 1 no.
A) An Ordinance Amending Chapter 6 Article II Division 2 entitled "Entertainment" (Introduced by Councilwoman Canavan)
Public Hearing Opened. No comments. Public Hearing Closed.
Motion to approve was made by Councilman Leger and seconded by Councilman Robichaud.
All Agreed. So Voted.
Council President Noury explained to Mr. Chattellier, the City's auditor, why there could not be an executive session and stated that they would hold their question and answers at this time under public comments.
Council President asked Mr. Chattellier about the status of the Audit. He stated that the firm received the last piece of information from the Finance Department on May 14th. He said that about three to four weeks after that the company should be able to wrap it up. He stated that a large part of it is drafted already and that there are 5 or 6 open items where the firm has requested some additional information and a meeting has been set up with the administration and the firm has to clear up those items and he expects to have a draft to the Finance Department or Administration by the 15th of June.
Council President Noury asked what happens after that.
Mr. Chattellier stated that if all the open items are done then it's ready to be issued about 10 days and he expected that before the end of the month there would be a completed audit report.
Councilman Lazieh stated that he as well as other members of the Council wished to see this audit completed before December 31st. He stated that he found it very discouraging that only until May 15th that the auditors have been given the final administration. He stated that the Finance Committee and the Council has no idea of the standing of the City financially for almost a year. He stated that an audit of the City doesn't take a year to do and he spoke of budget, surplus and the use of the funds, encumbrances. He further commented on the delay of the audit.
Mr. Chattellier stated that the December 31st is the Auditor General's deadline and that in the normal course of events this should be a sufficient time for a number of reasons. He stated that it's his opinion also the opinion of most Finance Directors, other auditors and people who are involved in municipal finance that the audit should be a non event and that the Council should be getting ongoing information that relates to the current budget and that when the audit is delivered the discussion that would take place since the council would have the information during the current year on a monthly basis would be any differences between what had been reported and what is disclosed on the audit and that the audit should not be a sole source but an independent opinion on what the Council has been receiving up to this point. He stated there is part of the problem that the Council has because the Council hasn't gotten a complete picture because the audit hasn't got a complete picture. He stated that the key is to build a finance department or operate it in a manner that the information would be ongoing.
Councilman Lazieh asked if the Finance Office is computerized?
Mr. Chattellier stated that it's frustrating for the auditors as well as the Finance Department.
Councilman Lazieh stated that it's difficult to run a City on temporary help.
Mr. Chattellier stated that not only in Central Falls but also in many other places that the wages are a problem in recruiting someone. He stated that without a Finance Director the City is dealing with a capable person who deals mainly with the auditors but her time on this function is limited due to other duties. He suggested that if the Council made it their goal by pay restructuring, looking at what the jobs are and get someone in the Finance Department who can make that happen. He stated that he doesn't enjoy coming before Council's to explain why the audit is delayed.
Councilman Lazieh stated that he's sure that the firm did not bid on the audit with the intention that the audit would be delayed for over a year.
Mr. Chattellier stated that the person providing the information has gone above and beyond.
Councilman Lazieh stated that he knows that the Deputy Finance is very capable and cannot do this alone.
Councilman Lazieh asked that the Chairman of the City Council's Finance Committee be part of the meeting with the Deputy Finance Director and Mayor with the auditors.
Council President Noury responded that usually the auditor would present the Administration the audit and allow management some time to respond to it.
Mr. Chattellier commented on the protocol.
Council President Noury commented on the problems in the Finance Department.
Mr. Chattellier stated that it has to be an ongoing reporting which would give a clearer picture than any audit report, which is almost a year.
Council President Noury questioned Mr. Chattellier on the sale of the recycling truck for $90,000 and asked if it was proper for the City to take the amount off a bill owed by the City to the Company receiving the truck?
Mr. Chattellier responded that the Mayor called before the transaction and asked if it was proper which instead of exchanging checks it would be a convenience. He stated that he saw no problem with that as long as it was properly recorded in the books. He told him to record the full amount as a charge to the appropriation and the amount that was reduced for the sale of the truck should go into a miscellaneous item or the sale of equipment item or revenue item.
Councilman Lazieh stated that it was not budgeted. He stated that the line item did not previously propose to sell this piece of equipment and so the revenue account would not be credited for $90,000 of revenue coming in. He asked shouldn't that be reflected in the revenue account.
Councilman Lazieh that if in the normal business operation even in a municipality at no time previously did the City make a swap for convenience to sell a piece of equipment from a vendor and say take it off the books.
Mr. Chattellier stated that he's not commenting on the propriety of selling City Property because there's a process for selling City Property and he's doesn't know if that was followed or not because he hasn't audited that, but that the presumption was that it was. He said that netting the check is just a convenience as long as it's recorded properly and from what he was told it was recorded properly.
Council President Noury stated that in the March Financial report it is recorded as revenue for $90,000.
Councilman Leger stated that the Council still hasn't received the answer on the expense side and that's the question that still out there. If it was a $200,000 and a $90,000 then the expense should still show $200,000 and not $110,000 and that's the question he asked the Finance Department.
Councilman Lazieh stated that it would be miscellaneous revenue that was not budgeted and should be a $90,000 surplus in the budget.
Mr. Chattellier stated that assuming that everything else zeroed out yes.
Councilwoman Canavan stated that the $90,000 could not be spent in this fiscal year.
Mr. Chattellier responded that assuming that everything happened the way Councilman Lazieh said then that would be correct. The question or the possibility exists that all the other revenue doesn't come in the way it was budgeted.
Councilman Lazieh stated that in this budget year the Administration has budgeted 14.7 beyond the 14.4 that the council appropriated besides the 14.7 he has an additional $90,000 which brings him over the 15 million.
Mr. Chattellier stated that the appropriation limits the administration on what can be spent on that particular line item. He stated that if the City spends every dollars that it has appropriated and received every dollars in revenue it budget then $90,000 sits there and isn't spent. He said if however, $90,000 in tax revenue falls short then that particular budget item doesn't stand-alone and say you can't spend that.
Councilman Lazieh stated that the question comes in a budget approved by the Council at 14.4 and the Mayor's spending a budget amount of 14.7 and the sale of $90,000 truck, which he didn't agree with.
Mr. Chattellier asked if the process was followed.
Councilman Lazieh responded yes.
Mr. Chattellier asked if the process was followed.
The City Clerk/Purchasing Agent Elizabeth Crowley responded yes.
The City Clerk repeated that it has been followed.
Councilman Lazieh responded that he doesn't agree with it.
Council President Noury asked for order.
The City Clerk stated to the City Council President that she feels that Councilman Lazieh is implying that she isn't doing her job and that she restated that the process was followed.
Councilman Lazieh responded that he didn't say that it wasn't followed but that he disagreed with it.
Council President Noury stated that the process was followed but the sale of the truck is what Councilman Lazieh disagrees with.
Councilman Lazieh repeated that he said that the process was followed but he doesn't agree with the decision. He then stated that he recently found out that the Administration has sold two more trucks that the Council told the administration not to sell.
Council President Noury asked if there were any other questions for Mr. Chatellier.
Councilman Lazieh stated that there are many questions but he has to wait until he sees it.
Mr. Chatellier stated that surplus is revenue for budgetary purposes but not for generally accepted accounting purposes and that if everything is as budgeted then the audit will show expenditures in excess of revenues.
Council President Noury thanked Mr. Chatellier for his time.
Councilman Lazieh asked about the award of the bid.
City Solicitor Briden commented the Ordinance regarding the Legislative Assistant Solicitor and stated that he will give his legal opinion some time next week regarding the Ordinance he doesn't want there to be a misunderstanding that he is not giving an opinion right on the moment.
Council President Noury stated to Mr. Briden that he had just stated earlier that there was no problem with the line being drawn through the word.
Mr. Briden responded that he didn't have a problem with that but he is talking about the overall ordinance since he hasn't researched it.
Council President Noury asked what he would research.
Mr. Briden responded that he hasn't researched the ordinance generally.
Council President Noury stated that it has already been established by Judge Weisburger that a previous Council through a Resolution under section 2-501 of the Charter created another officer of the City. Judge Weisburger already ruled on that.
Mr. Briden responded that he is familiar with the decision.
Council President Noury then stated that the Solicitor could go ahead and research the Ordinance but that he couldn't see how the Solicitor could rule that it wouldn't be legal to create another position.
Discussion continued.
None
None
Motion to adjourn was made by Councilman Leger and seconded by Councilwoman Canavan.
All Agreed. So Voted. Time 7:45 p.m.
___________________________
Elizabeth A. Crowley, CMC
City Clerk