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 | CITY OF CRANSTON RHODE ISLAND
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SPECIAL MEETING OF THE CITY COUNCIL
MINUTES
Monday, May 6, 2024 at 5:30 p.m.
Special Meeting of the City Council was held in the City of Cranston Council Chambers, Cranston City Hall, 869 Park Ave., Cranston, RI 02910, for the purpose of considering the following items listed on the agenda.
YouTube Livestream
The meeting was also live streamed on YouTube. Click the link below to view the meeting. https://www.youtube.com/channel/UCtE9vwA1B1PQHuftrNPcZjg.
This Special Meeting of the Cranston City Council has been called by the Council President, Jessica M. Marino, pursuant to the Cranston City Charter Section §3.07 and Section 2.04.060 of the City's Code of Ordinances.
The members of the City Council listed on the attached certification have been notified as provided for in §3.07 of the Charter: Jessica M. Marino (Council President), Lammis J. Vargas (Council Vice President), Councilman Christopher Paplauskas, Councilman Robert J. Ferri, Councilman Richard D. Campopiano, Councilwoman Nicole Renzulli, Councilwoman Kristen E. Haroian; Councilman John P. Donegan; and Councilman Daniel Wall.
I. CALL TO ORDER
The meeting was called to order at 5:54 P.M. by the Council President, Jessica M. Marino.
II. ROLL CALL
Roll was called by the Clerk. Stated as present: Councilman Robert J. Ferri, Councilwoman Nicole Renzulli, Councilwoman Kristen E. Haroian, Councilman John P. Donegan, Councilman Richard D. Campopiano, Councilman Christopher G. Paplauskas, Councilman Daniel Wall, Council Vice-President Lammis J. Vargas, and Council President Jessica M. Marino. Also present: David DiMaio, Budget Analyst; Stephen Angell, Legal Counsel; John Verdecchia Assistant Solicitor; Christopher Millea, Solicitor; Anthony Moretti, Chief of Staff; and Tracy Nelson, City Clerk
III. BUDGET ADOPTION
CONSIDERATION of overrides of Mayoral vetoes of amended appropriations or additions to the Fiscal Year 2024-2025 Budget, as approved by the Cranston City Council
(votes may be taken)
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of the Council amendment to Operating Budget Revenue item 1111-42712; Inspections - Administrative Penalties; increase in the amount of $15,000.
Discussion:
Director Moretti spoke. As mentioned at previous meetings, by increasing these revenues there’s a good chance of a deficit being reported at the end of the 2025 fiscal year. That’s not a good thing with the bond agencies. We will go out to bond this year. The administration will be honest about where the city stands and is going financially. This is not a wise override of the Mayor’s veto. Council is strongly urged not to override the Mayor’s veto based on that rationale.
Councilman Donegan offered a blanket statement regarding the revenue items. While analyzing the budget, the amendments that were proposed are in line with both historical and present fiscal year projections. They were reviewed with the Budget Auditor. They are appropriate amendments and adjustments to make. For that reason, he is confident in the numbers and overriding the Mayor’s vetoes.
Council President Marino concurred.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Revenue item 1112-49130; Finance – Other Revenue; increase in the amount of $750.
Discussion:
Director Moretti has the same comments for each override. He will not come up to object on each individual item.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Revenue item 1202-44500; Police – VIN Verification; increase in the amount of $15,000.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment Operating Budget Revenue item 1300-44101; Public Works – Street Opening Permits; increase in the amount of $15,000.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Revenue item 1302-44200; Highway Maintenance – Public Works Highway Misc; increase in the amount of $30,000.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Revenue item 1303-44300; Engineering – Inspection Fee Sub-Divisions; increase in the amount of $1,500.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Revenue item 1400-45000; Parks & Rec – Parks & Recreation Receipts; increase in the amount of $25,000.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Revenue item 0000-49135; State Aid, Taxes & General Revenue COVID-19 (ARPA); increase in the amount of $220,000.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1101-51100; Executive – Salary Schedule; reduction in the amount of $47,860.25.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1101-51300; Executive – Payroll Tax; reduction in the amount of $3,661.31.
Discussion:
Director Moretti spoke on all the amendments in the Executive budget. There are over 600 municipal employees on the payroll. Coincidentally, the Council saw fit to eliminate a position in the Mayor’s office as the only position in the City of Cranston to be eliminated. There will be a lack of opportunities in terms of efficiencies and seeking grant opportunities. Certainly, with constituent services, there will be a shift of responsibilities, and that will have an effect. We are losing an opportunity to be up to speed more on legislative initiatives going on at the state house, and federally. There was another reduction in the Mayor’s office of supplies, yet there is an increase in the Council budget. It was stated that it’s not punitive. These reductions don’t benefit the city. It would pay many dividends by retaining and not eliminating this position in city government.
President Marino responded. That position has been vacant for approximately nineteen months so if there are complaints relative to services not being done, that pre-dated this position being eliminated. Secondly, we do have a Council grant writer for the city. She is available, capable, and willing to assist the city with attaining grants. With respect to being punitive in nature, that absolutely is not the case. It’s a matter of fiscal responsibility and we differ in our perspectives as to this financial contribution. Relative to the staff at the executive level, the Council compromised by still allowing some of the executive salary raises to take place and there are other rank-in-file workers throughout the city who would have liked to have seen raises and didn’t obtain those. She does not hear gripes about the slight salary increases going as proposed in the Mayor’s budget that this Council did not override. She does not hear complaints about that being punitive.
Councilman Donegan agreed with Council President Marino and added, for anyone listening, a reminder, for the body as well, that a significant majority of line item changes were made with the intention to move money to the schools, which were level funded. The money that’s before us, the $81,000 for this position, those dollars went toward the schools and that is definitely something the residents of the city will benefit from. That’s why he supports the override, in addition to the reasons the Council President stated.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1101-51304; Executive – Group Life Ins; reduction in the amount of $192.00.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1101-51301; Executive – Pension; reduction in the amount of $4,814.74.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1101-51302; Executive – Hospitalization; reduction in the amount of $24,884.48.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1102-52217; City Council – Video Streaming; increase in the amount of $15,000.00.
Discussion:
Director Moretti spoke. There’s a question as to whether these funds can be legally used unilaterally by the Council to fund these items. You can say you can take them out next year, but that doesn’t happen in practicality. This is likely to lead to a structural deficit next year. The Mayor looked forward to being able to speak to the bond rating agencies about how Cranston made it without having to use ARPA funds this year. That was a key question with the bonding agencies. They’ve seen it around the country. Cranston had a program. Our bond rating, the city should be proud of it. The City Council should be proud of it. This is a blemish on being able to declare to the bond rating agencies that the City of Cranston is free of using ARPA funds and would not have a structural deficit. The Mayor would prefer to have clean books going forward instead of dependence on ARPA to fund certain earmarks Council feels they should.
Council President Marino stated these are one-time expenses. These are not recurring expenses. That was stated in previous budget hearings. It is worth reiterating this evening. That is a fact. That is the truth.
Councilwoman Renzulli stated for the record, as she did on the night of amendments that included these line items, that she does not disagree with the need to have updated video streaming or any other items in the list. She just doesn’t believe it is being done correctly by using ARPA funds within the budget. They should be used separately. Therefore, she will not be in favor of this tonight.
Council President Marino mentioned the four items briefly. Video streaming is for enhancements with the technology, one-time expense. Muni code is because we are well overdue for updating our municipal code which is typically done every ten years and we are on the verge of twenty years of it not being done. The ARPA funding being provided is based on cost estimates given for those two expenditures. The Sidewalk Program is a 50/50 program that has been in existence in the city for residents to seek funding to repair sidewalks. There is a desperate need throughout the city. ARPA funding for that is fully appropriate. Traffic Sign Materials is for the safety of our community. It is a one-time expenditure relative to safety signals in vicinity of schools to keep our children, families, pedestrians, and everyone safe.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget adding item 1105-52260; City Clerk – Muni Code; in the amount of $25,000.00.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1300-54802; DPW – Sidewalk Program; increase in the amount of $100,000.00.
Discussion:
Councilwoman Renzulli clarified she is not basing her vote on the merit of each line item or program that could use this money, but based upon legal guidance that we should not be appropriating ARPA funds through the budget.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1202-53209; Fire – Traffic Signal Repairs; reduction in the amount of $35,000.00.
Discussion:
Director Moretti mentioned, as before, this potentially endangers vehicles traveling throughout our city by reducing traffic signal repairs. This is a great argument for safety. If there is not enough money for traffic lights in need of repair or replacement, that causes public safety concerns. It is not a wise move. Speaking with the Chief, it is a dangerous move.
Councilman Ferri asked Director Moretti why, if he felt these things were needed in the budget, and we should not be using ARPA money to do them, they weren’t budgeted in the first place.
Director Moretti pointed out that Council is reducing the budget. These things do not happen all in one year.
Councilman Ferri noted the reductions are being made in order to give the school department more money.
Director Moretti stated it is the Council’s responsibility to make that decision. Unfortunately, these two are public safety concerns. Council votes on it. The Mayor has a different opinion than the Council, apparently.
Councilman Donegan thanked Director Moretti. At the end of the day, regardless of votes, it’s a difference of opinion. We should just see nothing more than difference of policy on some of these things. He spoke about the math behind the change. The Mayor had submitted a line item of $85,000 for this. When you look back at the five most recent closed fiscal years, the average amount spent in this line item is $33,000. Only once has this line item gone over $30,000. The number Council reduced it to is $50,000. That is a $35,000 reduction, but still $18,000 over the average expenditure for those five closed fiscal years. Additionally, the current fiscal year is only running about $10,000 so Council is leaving quite a significant buffer to what the average historical spending is.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1302-54201; Highway – Snow Removal Equip Repairs; reduction in the amount of $15,000.00.
Discussion:
Director Moretti presented a similar argument. Given the cost of equipment, particularly anything to do with vehicles, costs are skyrocketing. They are only going up. They have not come down. We have been pretty lucky with the weather the last two years, but there’s a concern, given inflation, and the cost of repairs and materials, that it is most prudent to leave that money in the budget and not risk it. It’s not that the Mayor or the Administration believes that the other causes are not worthy. He just wanted to mention that also. But when determining priorities and trying to balance all considerations, that’s where the Mayor comes out on all this.
Councilwoman Renzulli agrees we have had some mild winters, but if we have a bad winter and we have broken equipment we cannot fix, our constituents are going to be upset when the roads can’t get plowed. This money is going to the schools, but if the roads can’t get plowed, the kids aren’t getting to school either. That’s where she stands on this.
Councilman Ferri reminded everyone that there are two brand new plows in the capital budget to be purchased this year.
Councilman Paplauskas, referring to the point his colleague just made about the two brand new plows, stated that, when they break, they will cost more money to fix.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1304-54008; Building Maintenance – City Supplies; reduction in the amount of $5,000.00.
Discussion:
Director Moretti stated the Mayor would like to not reduce the budget in both city supplies and electrical supplies, for the proper maintenance of city buildings. They don’t use excessive funds as it is. It’s another area where supplies have suffered from inflation. Our buildings are not getting younger. They are getting older. It is prudent to leave the money where it is right now.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment to Operating Budget Spending item 1304-54401; Building Maintenance – Electrical Supplies; reduction in the amount of $8,000.00.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
Discussion:
Director Moretti spoke. The Mayor feels this is an unnecessary reduction in diversity program opportunities. He appreciates being budget-minded; however, he feels this money would be beneficial. In the last year or so, the funds haven’t been used. The Mayor wants to direct the Personnel Director to step up that commission; and, as chair, could use the funds on programs to be determined. That’s the rationale.
Councilman Donegan reiterated that the amendments made in the budget were with the purpose to support the schools as well as several challenges that would be faced by the library. That’s where the $3,000 went. For the past several years this commission, which we all support and want to see thrive, has not met; and for the past several years has not spent a cent of the money that has been allocated to them. If there were programs planned, he believes this body would support them. As Councilman Campopiano stated in the budget hearings, if next year there’s a budget that puts this at [insert any number], Council would support it because we all want to see this thrive, but the reality is, it’s not meeting. People mentioned diversity training. His first term on the Council, a diversity training was done for department heads and members of the City Council, through a grant. We would all be supportive of something like that again. Personally, if the Mayor. or whichever Mayor or Administration comes in in January, wanted to appropriate ARPA funds to pay for a diversity commission , he would be all for spending money for that, but the $8,000 isn’t going to get you that.
Council Vice-President Vargas is in support of all items that have so far come before her, except one. This is the one item she is not going to be able to support. Everyone who knows her knows she is a supporter of the public school system and their staff. This is one item she would like to see remain as proposed in the budget. She emailed the Administration back in January and again today just asking where we stand and hopes the Personnel Director can get meetings going. She recalls the grant Councilman Donegan referred to. She hopes we can also evaluate and assess that and have the grant writer or the department reach out to different organizations that provide the training. For the record, she supports public schools and libraries, but this is the one item that she will not be in support of this evening.
Councilwoman Renzulli stated that, while the argument is this will go to the school and library, which support a more diverse population as the city changes, she thinks $3,000 is a small amount of money this commission could do more with than the schools or library. We are giving the schools a significant amount of money comparatively. She would like to see this stay where it is. She will not be in favor of cutting it.
Councilman Donegan has a question for legal on balancing out amendments that were made. What if there is an imbalance, based on whether or not the Council votes to override?
Atty. Angell stated the budget has to balance. It’s that simple. His recommendation, if the budget is out of balance after Council overrides whichever vetoes it wishes, that Council take a brief recess to consult with Budget Analyst DiMaio and examine that question.
Council Vice-President Vargas asked, if that $3,000 were to fail this evening, would there be an amendment to place that $3,000 in any line item this evening?
Atty. Angell answered no.
Council President Marino, as she stated in prior meetings, with regard to the $3,000 reduction for the Diversity Commission, takes pride in the fact that one of her early initiatives on Council, hand-in-hand with Vice-President Vargas, codified the Diversity Commission because previously it was just a resolution. We also appropriated significant funding to the Commission, which is led by the head of Human Resources, which is an administrative executive position. Yet despite doing that, they have not used the funds three years in, and they haven’t even convened in at least a year. The money that has been appropriated through this budget to this commission is still more than most other commissions. It’s not an easy decision to make, but if this commission were to have convened, then she would happily appropriate money to this commission. They can come to Council if that is to occur. But with the fact that it hasn’t occurred, she’s not in favor of giving more money that ends up as a surplus, that ends up going somewhere else in the budget at random. She would much rather see that $3,000 go to dedicated departments that do serve the community well.
Councilman Donegan appreciates all the comments. It is Council’s duty to pass a balanced budget. At this point, not overriding the vetoes would cause the budget to be imbalanced, and we can’t do that.
Council President Marino called for a brief recess at 6:31 P.M. and reconvened at 6:34 P.M.
Discussion continued:
Councilwoman Renzulli doesn’t understand why we have the option to override vetoes. We haven’t run into this situation before, but there must be a mechanism where a veto can be upheld and the budget can be balanced; otherwise, why would we have line-item veto in the first place.
Atty. Angell explained Section 6.09 of the Charter allows a variance. He understands the Budget Analyst has looked at that and concurs.
Budget Analyst DiMaio confirmed there is a provision, as Atty. Angell said, of 5%. He would just like clarification as to whether it refers to a reduction in expenses or a reduction in revenue. He wants to be sure this issue would fall into that category.
Council President Marino suggested having that discussion if the veto override fails.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
Discussion:
Director Moretti spoke. Here too is the disagreement that was addressed at the finance adoption night. The use of the ARPA funds is in question. We heard different attorneys have different perspectives. The Mayor and the Council have two different viewpoints in terms of legal advice being offered. What he recommends, versus having a disagreement amongst the two and just hard line driving through use of the ARPA funds, that perhaps there may be a friendly agreement to have the court decide. Not in an adversarial way, but in a cooperative and collaborative way where the City Council and the Mayor may want to get a judgement. It’s pretty much unchartered territory. The Mayor offers to go to the courts and have them decide. Not to face the Council in an adversarial fashion, but more-so in a cooperative fashion to see where the powers belong relative to use of these ARPA funds. That’s the recommendation of the Mayor.
Councilwoman Renzulli reminded everyone that a legal opinion was requested as to whether Council could use the ARPA funding in this way in the budget. One attorney said we could. Two gave the opinion we could not. As Council members we are supposed to seek legal advice. In her mind two is greater than one. She does not believe Council should be using the ARPA funding in this way. Whether we go to court in an adversarial manner or friendly it’s going to cost taxpayer money. She thinks it shouldn’t be used this way so that we don’t go to court.
Councilman Donegan has a tremendous amount of respect for the solicitors and appreciates their opinions. He also appreciates the opinion of the City Council’s attorney who disagrees. He finds it counter to our system of government from the federal, to state, to municipal level where the legislative branch is the body that has the power to appropriate funding. He believes Council is well within their realm to do so relevant to ARPA funds. It’s something Council has done in the past without legal challenge. He thinks Council is within their right to do so this evening.
Council President Marino feels it is worth echoing that Council has done these appropriations in budgets in the past without legal issue. There is currently disagreement in legal opinions. She feels very confident making these appropriations. As she stated previously, this is undeniably going to save the city money. Instead of borrowing money and paying interest, we are able to satisfy these projects without spending money on interest and going into debt. That is a savings to the taxpayers. The use of these funds for these capital projects is completely appropriate under ARPA, which needs to be allocated by December 31, 2024 or we lose these funds. For that reason, she will be in support. She called for the vote.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 202; Public Buildings – Police HQ HVAC Rehab; in the amount of $750,000.00.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 202; Public Buildings – Police Dispatch Room Reno; in the amount of $150,000.00.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
No discussion.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 200; School Dept – CHSE HVAC Boiler Upgrade; in the amount of $780,500.00.
Discussion:
Director Moretti provided slides. This is a continuation of a previous discussion that, financially, this is not the prudent thing to do. There are several projects totaling a little under $2.1 million being proposed to override the Mayor’s veto. There is no issue on the spending of these programs. The Council and Mayor are in sync relative to spending certain funds for these projects. The question is the method of spending. The Council proposed using ARPA funds. The Mayor strongly disagrees. He feels we should use bond money to do so. It is critical to make perfectly clear that RIDE’s C.O.O. has advised, as believed was the case, that use of ARPA funds would not qualify for the up to 74% cost share. You can’t double dip from the federal government and the state. In essence, the city would be forfeiting, in today’s dollars, $1.5 million, with a future value exceeding $2 million. In terms of the school projects totaling $2,062,750, using ARPA funds, the net cost to the city for bonding would be $0. Instead, the Mayor would rather use the city bonding with RIDE and the school department promising 74% reimbursement. The net effect in today’s dollars would be $536,315. You may say the Mayor is going to spend more money than the Council. Yes, on this particular project. Calculating future interest, it would be almost $800,000 by using bonding, at a 4.25% interest rate. The figures may not be exact, but they are materially correct. If we were to take that $2.1 million in ARPA funds and apply it to municipal projects, we could do them without bonding. Under Council’s plan, using up that $2 million, we would take out bonding on the $2 million and end up paying over $3 million at 4.25% interest. The numbers are difficult to understand but he is trying illuminate key points. Taking the two numbers on the previous slide, the Mayor would overspend the Council by $56,000; however, by not using on the municipal projects where the Mayor would prefer using the $2 million in ARPA, the difference in the two would be over $1.5 million in today’s dollars. In essence, that is the loss of the 74% RIDE reimbursement. If you apply interest, the Mayor’s plan saves about $2.3 million in time. The message is that a veto override really is just bad math. It’s black and white math with an asterisk to say we don’t know what the interest rate will be. There could be some immaterial differences in the calculations of interest. Materially, the point is made. It would not differentiate substantially. With that, the Administration feels very strongly they can save the taxpayers $1.5 million up front if we use the ARPA funds for municipal projects and not school projects. The Mayor endorses the spending of funds, but not ARPA funds for the school projects.
Councilwoman Renzulli appreciates the slides. She suggested doing this in the future. When this was originally brought forward, the original thought was that we would be able to use the ARPA funds and be able to get the 74% back. At the time, we commented that may not happen. Now that Mr. Moretti has confirmed that can’t happen, it’s kind of black and white that it’s not worth using ARPA funds on projects that we are already going to bond for that we will get 74% back. A lot of time was spent putting that bond resolution together. It’s going to the voters. All these projects can still get done. She noted that, by not doing this, the school will not lose any of their projects. It will just be funded differently. Not only should Council not be using ARPA funds like this in this budget; but, if we can use the ARPA funds on projects we have no chance of getting 74% back, then we are obviously going to save money.
President Marino referred to the slide that reads “veto override = bad math”, she disagrees with that equation. She thinks veto override, in this category, equals positive plus for our schools and we win as a city. The Mayor himself has said he prioritizes and values the schools. He has said publicly, in the press, that he is seeking to appropriate $1 million of ARPA funds to the schools, but looking to find a way to do it that avoids maintenance of effort. A way to do that is to utilize the ARPA funding through the capital improvements, which this Council is seeking to do. We have increased that by another $1,062,750. To be clear, our schools have many needs. This is a drop in the bucket of the many needs. Again, this is not lavish. These are essential things that need to be done. Let’s also remind ourselves that the $40 million bond is not a guarantee. Voters may disagree and vote that down. By passing these overrides this evening, we can ensure that we have appropriated, in a financially responsible way, funding that the city already has, without interest, and no further expense to the taxpayer, in a very appropriate allocation. We will be improving our schools. If the voters do approve the referendum, that frees up the school department to utilize that $40 million for additional things that are needed at the schools. Not one person in this room would say that $40 million is going to cover it all. There are many other essential needs for our schools. They can avail themselves of reimbursement for those essential fixes as well. For that reason, she is in favor of the veto override.
Councilman Donegan agreed. For reference, the school department did obtain $50 million worth of project approval from RIDE in the event that additional funding was to become available. As said, this frees up $2.1 million to now call up some of those other projects that the school was not anticipating getting done.
President Marino mentioned one other essential thing. The Administration referred to the $2.1 million in ARPA being used for other capital budget expenditures for municipal buildings. The Mayor, in proposing his budget, did not set forth any additional municipal building improvements in his capital budget. Again, we are up against the clock. The ARPA money needs to be allocated by year end. For those who are unaware, the process of coming up with the proposed budget is a very deliberate and thoughtful process that the Administration took many months to prepare. They set forth those capital expenditures to the Planning Commission, as required by the Charter, for approval or disapproval, before it came to Council as part of the Mayor’s budget. As we sit here this evening, looking at these veto overrides, we need to remember there is no other municipal budget building capital project before us.
Councilman Paplauskas wishes the line Director Moretti had at the end of his slide read “penny-wise = dollar foolish”. He thinks that’s the way we are going with this vote. These overrides are going to cost more money in the long run and 74% is going to be left on the table.
Director Moretti stated there is no question the city would lose $1.5 million in today’s value. It can’t be denied. The Mayor supports every one of those school programs. He doesn’t know why people might think the Mayor doesn’t support them. Those school projects are going to get done. The Council wants it. The Mayor wants it. Some of it depends on the residents. There are budgeted capital line items for city buildings and drainage and things like that. It would just be a shame to not take advantage of RIDE’s $1.5 million, or to just go out and overspend more money because you didn’t save the money here. It isn’t financially prudent. Given his accounting background, he can rely on these numbers.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 200; School Dept – Stone Hill Floor Replacement; in the amount of $223,000.00.
Discussion:
Councilwoman Renzulli referenced Council President Marino’s comment that the voters have the option not to approve the bond. If the voters do not approve the bond, then the voters obviously don’t want their tax money to go to the schools. She thinks the voters will approve. Bonds have been approved overwhelmingly in the past. She agrees this work needs to be done, but if the voters do not, who are we to spend this ARPA money, which is essentially the voters’ money too. When Council spends money, they are spending it on behalf of the people of Cranston. If they make their voices heard and they want their money spent on that, then we will do it with the bond as originally planned in the beginning.
Councilman Paplauskas stated once, for all the school items, that he supports them getting done. He just doesn’t support the avenue for funding; by using ARPA funds and giving up the 74% reimbursement rate RIDE is offering and leaving money on the table. Again, he does support the projects getting done.
Council President Marino pointed out that use of ARPA funds does not require voter approval. Bond borrowing does.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
Discussion:
Councilwoman Renzulli clarified. She did not say the voters get to choose what ARPA is spent on. She said they get to choose if we go out to bond. If they approve the bond, it shows they think the schools need that money. They don’t have any actual say in the ARPA funding. Except, we did do a survey, and she doesn’t recall anyone saying anything about giving it to the schools. However, if the voters of the City of Cranston believe these projects need to be done, we already have an avenue to do that, through the bond. It is our choice what to spend ARPA money on, but it’s supposed to be about the will of the people.
Councilman Donegan believes each Council member ran on a pretty pro-Cranston-school agenda. He knows he and many others did. He feels confident that his constituency supports spending ARPA funds on this. He can sleep comfortably at night doing this.
Council President Marino reminded everyone that this override is to replace flooring in an elementary school that has asbestos flooring. It is clearly needed and ARPA funding is completely appropriate for that expenditure.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 200; School Dept – Stadium Floor Replacement; in the amount of $223,000.00.
Discussion:
Councilwoman Renzulli stated these are worthy items. The floors with asbestos obviously need to be replaced. That’s why these projects were put into the bond. She would like to note these floors will get replaced. We are discussing with what money they are going to be replaced. Replacing them with money we can get 74% back is actually more fiscally responsible so we can use this $2 million for something else.
Councilman Donegan pointed out that the $2 million that we can use this on are other school projects in which we will receive 74% back.
Council President Marino is confident, being a parent of two children, one who has graduated completely through Cranston public schools, and one that is in them, that there are additional schools, besides the ones on this list, that are in need of asbestos floor replacement. She looks forward to having additional projects, should the voters approve the $40 million bond referendum, and that those schools get it done, in addition to the schools allocated through ARPA, as an appropriate expenditure through the Council.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 200; School Dept – Rhodes Floor Replacement; in the amount of $223,000.00.
Discussion:
Councilman Campopiano stated for the record that he whole-heartedly supports the schools, and he commends his colleagues for putting this forward, but we have two clouds. First, is it legal to transfer this money? Secondly, while he is confident the $40 million bond will be passed, because schools are very important to the citizens of Cranston, he cannot support this. Though he does support the schools, he wishes there wasn’t a cloud of legality over it.
Council President Marino stated for the record, because facts matter, it’s not illegal. There’s a difference of opinion between the City Solicitor and the Council Attorney on the appropriation.
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 200; School Dept – Woodridge Floor Replacement; in the amount of $167,250.00.
No discussion
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
MOTION made by Councilman Donegan, SECOND by Councilman Ferri to override the Mayor’s veto of Council amendment approving the use of ARPA funds in lieu of bond proceeds for Capital Improvement item 200; School Dept – Dutemple Floor Replacement; in the amount of $223,000.00.
No discussion
VOTE: Ayes – 6 (Ferri, Haroian, Donegan, Wall, Vargas and Marino) / Nays – 3 (Renzulli, Campopiano, and Paplauskas). MOTION CARRIES.
Council President Marino announced the conclusion of the veto overrides.
IV. ADJOURNMENT (Vote may be taken)
MOTION made by Councilman Ferri, SECOND by Councilman Donegan to adjourn at 7:07 P.M. All Ayes
Minutes approved as written May 28, 2024
Attest: ____________________________
Tracy A. Nelson, City Clerk