I. CONSENT CALENDAR

A.  APPROVAL OF COUNCIL JOURNALS

       February 7, 2006 - Regular Meeting

       February 7, 2006 - Closed Meeting Re: Collective Bargaining

B.  RESOLUTION – Town of Smithfield – Resolution in support of US Senate Bill 1479 and House Bill 3427, known as the Lyme and Tick-Bourne Disease Prevention, Education, and Research Act of 2005.

C.  RESOLUTION – Town of New Shoreham – Resolution in support of US Senate Bill 1479 and House Bill 3427, known as the Lyme and Tick-Bourne Disease Prevention, Education, and Research Act of 2005.

D.  ALCOHOLIC BEVERAGE LICENSE - CLASS F-1 – April 27^th, 28^th, & 29^th

      St. Mary’s Academy - Bay View, 3070 Pawtucket Avenue

E.  LETTER OF RESIGNATION – Carousel Park Commission – Robin Bothelo, Gail Hogan, Kathleen LaChance, Sharlene Damiani, and Marie Camille.

On motion of Councilman Midgley, seconded by Councilwoman Perry, and on a roll call vote, it is unanimously voted to remove the minutes of the February 7, 2006 Closed Meeting from the Consent Calendar and keep them closed. 

On motion of Councilman Midgley, seconded by Councilwoman Perry, and on a roll call vote, it is unanimously voted to approve the Consent Calendar.  It is noted for the record that Councilman Miranda and Caine are absent.

II. APPOINTMENTS

Personnel Hearing Board (By Councilman Miranda)

Manuel Sousa, 1449 South Broadway (02914)

On motion of Councilman Midgley, seconded by Councilwoman Perry, and on a roll call vote, it is unanimously voted to approve.  It is noted for the record that Councilman Miranda and Caine are absent.

Planning Board (Reappointment At-Large–Larisa)

Michael Robinson, 124 South Blossom Street (02914)

On motion of Councilwoman Perry, seconded by Councilman Midgley, and on a roll call vote, it is unanimously voted to approve.  It is noted for the record that Councilman Miranda and Caine are absent.

III. CITY COUNCIL SITTING AS LICENSING COMMISSIONERS

LICENSES REQUIRING PUBLIC HEARING

1)  B-Full Privilege Victualer (Transfer) 

2)  Vict/Over 50 (Transfer)

3)  Video (1) (Transfer)

4)  Video/Sunday (1) (Transfer) 

From: TLKC of RI, Inc., d/b/a North Broadway Pizza & Pub

To: Sax’s Steak & Pizza, LLC d/b/a Sax’s Steak & Pizza, 525 North Broadway

Attorney Jack Gannon is present and speaks for the applicant. 

Donna Buxbaum, Cardorna Street, is present and sworn in by the City Solicitor and states when this was North Broadway Pizza and Pub, it turned into a rowdy bar that had pool tables and no tables to sit at.  The neighbors are concerned with its past history and want to be assured that this won’t happen again and would like to know the hours of operation.

The applicant, Andreas Andrikopoulos, 33 Wagon Lane, Attleboro, MA, is present and sworn in by the Asst. City Solicitor.

Mr. Andrikopoulos states hours will be the same, 11am-10pm Monday-Thursday and 11am-1am on Friday and Saturday.  The pool tables and jukebox are gone.  Will be putting the booths back in.  Are not planning to have a “bar” atmosphere. 

Mayor Larisa states we usually grant the license for six months, will then review again in August and if there are no issues, will renew it for the remainder of the year.  The applicant states he has no problem with that.  Mayor Larisa states as long as there are no issues, the applicant wouldn’t need to come back before the Council again.  Once we hear from the Police Chief, we can just put it on the docket for approval for the remainder of the year.

On motion of Councilman Midgley, seconded by Councilwoman Perry, and on a roll call vote, it is unanimously voted to grant the licenses for six (6) months and to review it again at the August 15, 2006 Council Meeting.  If the Police Chief reports no issues occurred during that time, the license will be granted for the remainder of the year.  It is noted for the record that Councilman Miranda and Caine are absent.

Stipulations on licenses: 1) The kitchen must remain open anytime alcohol is being served. 2) Cannot serve alcohol after 12 midnight.  Subject to approvals from the Chief of Police, Building Inspector, Health Inspector and Fire Marshall. 

LICENSES NOT REQUIRING PUBLIC HEARING

Holiday/Sales – (Change of Location Only) Subject to approvals from the Chief of Police, Building Inspector, Health Inspector and Fire Marshall.

Maxi Drug South, LP d/b/a Brook’s Pharmacy #207

From: 1050 Willett Avenue

To: 1080-1086 Willett Avenue

Joyce Franco, 4 Nicole Lane, Johnston, RI is present and sworn in by the City Solicitor.

On motion of Councilman Midgley, seconded by Councilwoman Perry, and on a roll call vote, it is unanimously voted to approve.  It is noted for the record that Councilman Miranda and Caine are absent.

LICENSING COMMISSIONERS RESUME SITTING AS CITY COUNCIL PUBLIC HEARING

IV. PUBLIC HEARINGS

ORDINANCES – FINAL PASSAGE  (Given first passage February 7, 2006.  Advertised-Providence Journal – February 10, 2006)

1)  The following is an ordinance amendment regarding no parking on Grosvenor Avenue (north side) from North Hull Street to North County Street

SECTION I.  Article X entitled “Stopping, Standing and Parking.” of Chapter 18 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled “Vehicles and Traffic.” Subsection 18-307 entitled “Parking prohibited at all times.” is amended by adding thereto the following:

GROSVENOR AVENUE (north side) from North Hull Street to North County Street during the hours of 8:00 a.m. and 9:00 a.m. and 2:00 p.m. to 3:00 p.m. school days. (Requested by: Director of Public Works)

V. NEW BUSINESS

A.  CITY MANAGER’S REPORT

1) Rescue Fee Account Proposal

Chief Brassill states that they maintain their own buildings and have many different issues at the fire stations as they are aging.  Propose to take 10% per month of the deposit to develop a special account for this purpose.  Project that approximately $50,000 per year will be put into this special account.  Asking for $50,000 investment out of this account initially so we can begin immediate prioritization and to start work on two of the four stations right away.  They are structurally sound and if we invest now, we could get another twenty-five years from each building. 

Chief Brassill also states a bid for a new rescue vehicle may be ready to go for the next Council meeting and will also be requesting to purchase a hazardous materials truck for response.  We have 26 trained members and have invested money in their training.  All we need now is the vehicle.  The other proposal is for Haz-Mat response billing.  Other communities are already doing this.  Based on the incident at Fuji Films, that would have billed out at approximately $30,000.  We are unable to do this without an ordinance in place.  Will have this proposal and explain the billing and fees schedules at the next meeting.  We are missing the opportunity to develop money to maintain our Haz-Mat team equipment and with no cost to the taxpayer.  Received a call from the Chief on the scene and the first thing Fuji asked was how much it would cost.  So people are well aware that billing is common in Haz-Mat responses and expect to pay. 

Mayor Larisa asks why can’t we bill without an ordinance.  Chief Brassill states there is no account to put it in or a system in place to bill it.  In the past, we’ve been able to get paid for destroyed equipment. 

Mr. Fazioli states the City Solicitor will provide a legal framework to collect that money because they could refuse to pay it and we have no policy in place to collect it.  Hopefully will have that policy finished soon to use another source of non-tax revenue to support some public safety equipment that we need. 

Mayor Larisa suggests that the Chief and the City Manager contact them and let them know what the bill would be and see voluntarily how much they’ll pay.  We may not be able to legally enforce it, but we can legally ask them for it.  The Chief states we could do that. 

On motion of Councilwoman Perry, seconded by Councilman Midgley, and on a roll call vote, it is unanimously voted to approve.  It is noted for the record that Councilman Miranda and Caine are absent.

2) Authorization to sell City Property – Cove Avenue

Mr. Fazioli states we adopted a plan to identify surplus properties in the City and sell them for capital improvement expenditures.  The property is Cove Avenue, also known as the Beacon Park Drive property, is two parcels, along with a paper street, amounting to approximately 50,000 square feet of property in Riverside.  Looking at approximately 5-6 lots that could be developed out of that property.  Would like Council’s permission to proceed on rezoning and to develop an RFP for the redevelopment of that property.  Jeanne Boyle gives more detail about the property.  Zoning presently is Open Space 1 and would propose it to be rezoned to Residential 4, which is consistent with the surrounding neighborhood.  Councilman Midgley states he would like a condition to be single-family houses only.

On motion of Councilman Midgley, seconded by Councilwoman Perry, and on a roll call vote, it is unanimously voted to approve.

3) Emergency Telephone Calling System

Mr. Fazioli gives an update to the Council on emergency telephone calling systems, which would be used to issue alerts such as water main breaks, issues with water quality, etc. to our residents.  Hopefully by the end of Spring, we will have such a system in place. 

4) Collective Bargaining Negotiations

On motion of Councilwoman Perry, seconded by Councilman Midgley, it is unanimously voted to go into Executive Session at the end of the meeting in accordance with Section 42-46-5 of the “Exceptions” of Chapter 46 of the General Laws, pursuant to Section 42-46-5-(a)(2) [Collective Bargaining/Litigation], to discuss negotiations.  It is noted for the record that Councilman Miranda and Caine are absent.

5) School Budget Review Report

Mr. Fazioli gives a report on the school budget review and why it was done.  He discusses the School Department deficit in Fiscal 2004.  They also had annual operating deficits in 2000, 2001, 2002, and 2004.  Indications that Fiscal 2005 shows there should be a surplus in School Department based on audit work done.  I decided to ask for the School Department budget review not just because of 2006 budget proposal, but because of the chronic problem with the last 4-5 years of operating deficits.  The City has increased its appropriation to the School Department.  In 2004, the City assumed the debt service payments for the School Department, which would have be catastrophic for the City’s credit rating.  The City also assumed funding for the Crossing Guards and allocated 80% of the meal’s tax revenues to go towards deficit reduction.  The School Budget review does show a gap, largely from out of district tuition for special needs students, rising utilities costs, and to comply with IDA federal regulations relating to special education programs for out of district students.  The review gives a 5-year detailed analysis by line item of their revenues and expenditures, which will provide a good basis for future budgeting.  This report also gives a number of improvements and suggestions.  There is a deficit projected in Fiscal 2006 so we still have time to put a plan together to eliminate the deficit.  Have been in contact with the Office of the Auditor General to set up a meeting to look at alternatives, but funding options are limited.  Need to be more creative on how we attack this problem as a permanent solution so we don’t have the same problem over again.  The effects on a continual deficit in the School Department affect the entire City.  It is in our mutual interest to fix this permanently once and for all.  We’ve identified some areas where the School Department can save some money.  The City has implemented programs this fiscal year, which have controlled spending and employee benefits and we have shared this information with the School Department.  Our unions are under contract as well.  We have to sit down and negotiate with them; this has to be done. 

Mayor Larisa states we met with B&E Consulting and they reported that everyone gave full cooperation, all books were open for their review and they could talk to any school employee on any topic.  The City allocated 80% of the meals tax revenue towards reducing the budget.  We have contracts we cannot afford and there aren’t many options.  We could hit up the taxpayer for it, but we are trying to lower the tax rate to 3%.  The Auditor General will be coming in and I’m hoping he’ll be able to help us with negotiations with the unions.  We gave the schools an additional $2.2 million dollars, a 6% increase, and we still have a $1.2 million dollar deficit.  $3.7 million went to salaries, benefits and healthcare.  These are three areas the common resident cannot understand.  They do not have fully paid for health benefits.  They pay big amounts towards their health benefits.  On the School side, they pay nothing.  And we pay up to $660,000 per year to have School Department employees not take healthcare.  This has to end.  The School Committee voted 3-2 to end it, then voted 3-2 to bring it back in.   We cannot do this and continue to have the taxpayers be part of the solution. 

Co-pays and cost sharing on healthcare benefits have been done on the State level.  We’re going to have it when the Police and Fire contracts come out.  And this isn’t even a cost sharing on healthcare.  It’s on the prescription drug package.  We’ve heard over and over that when Police and Fire do it, they will do it.  Police and Fire will pay 20%, 25% and 30% of all prescription drug costs.  The teachers and school employees pay a flat $5 and $20.  If they did nothing else and took the same plan we have, we wouldn’t have a deficit.  $660,000 a year could be saved by that simple change.  There are only 3 ways to solve the deficit problem.  With more money from the State and Federal Government.  Need to go to the teachers and the unions to get some of it from these contracts we cannot afford.  And from property taxpayers, no choice there will have to be some portion paid from the City side.  Unless we can get changes and cuts on the School side and more money from the State and Federal government, we’re not going to have money on the City side to cover this problem.  In the old days, they would just let the taxpayer foot the bill.  But that doesn’t work.  Heating and electric costs have gone up.  All expenses are going up, but we can’t have these huge deficits and then I have people say to me that they don’t have healthcare or prescription coverage and we’re paying people $660,000 not to take healthcare and they aren’t paying anything towards their healthcare.  This Council unanimously voted for a charter amendment to give the Council control over collective bargaining agreements and we won’t be approving any unless there is a co-pay in there and reasonable prescription drug benefits.  But right now, it is out of our hands and we are trying our best to get it under control.  It’s a very difficult situation. 

Councilman Midgley states we’ve given the School Department 80% of the meal’s tax revenue.  That money was supposed to go to the City, not to the School.  The part that is most bothersome is the buybacks.  That is the only thing not governed by the contract.  It states we give a portion of the premium to the employee, and we’ve looked into it, and no premium is being paid to Blue Cross because the School is self-insured.  There are about 100 people getting over half a million dollars.  There is no premium and no obligation on the schools to give that money to them.  That should be one of the first things they cut and it has to be done.  The rest are negotiations and we will try to work those out.  It’s the small things, like co-pays on prescriptions paying a percentage rather than a flat dollar amount, to help give back to the City. 

Councilwoman Perry states it always is us against them and no one mentions the high costs of special education, high costs of fuel and buses, we always blame it on the teachers and the salaries and benefits, but there are many other reasons why the School Department has the problems they do.

Councilman Midgley states that there are other reasons, but they are not as easily addressed as the co-pay issue.  All their increases are for personal services, salaries and benefits. 

Mayor Larisa states it is not always us against them.  I spent an entire meeting a few weeks ago on how the City isn’t being treated fairly on the special needs program and how the formulas need to be changed.  We talked extensively on these issues with the State elected representatives, on the special education class sizes, on the Superintendent’s excellent proposal on transportation.  As Councilman Midgley pointed out, those are all federal and State items.  We have even less control over those than we do on the buybacks or the City items.  So it is a combination of the two.  On the City items, there is no problem with providing healthcare.  The problem is the contracts and healthcare is out of whack with everything else.  There is no contribution towards it.  And prescription drugs, you don’t see those low premiums anywhere, not even with Police and Fire.  The buybacks ended years ago in private business.  So the problem isn’t the benefits we’re providing, our teachers and employees do work very hard and they do deserve the best.  I’ve talked to some teachers and they said they wouldn’t mind paying a higher co-pay on prescriptions if it helps solve this problem.  But the unions won’t let them vote on it.  The City has stepped up to the plate and if we can get more money from the State and Federal government, we can have a solution to this problem.  The salaries and benefits aren’t the whole problem, but they are a big part of it. 

School Committee member Robert Faria states he looked to his legal counsel for guidance on the buyback issue.  I’m not saying not to do this.  I don’t want to get caught in appeals on this, but there is a right and wrong way to do this.  I think every union in the School Department should have some input on this, but the contracts bind us.  I got my legal counsel’s opinion, found out what the pros and cons were.  And that’s why I did what I feel was the right thing to do at the time. 

Mayor Larisa states the City Solicitor believes we would have a good chance with this.  And Councilman Caine and I believe there is a very good chance too.  I can see your side on this, but as Councilman Caine said if we go to the courts and we win, we save $660,000 a year.  If we lose, what have we done?  We made a decision to go with a sound public policy backing the taxpayers.  We have people out there hurting.  Even if we lose, we tried fighting for the taxpayers.  But this Council believes it is not contractually required.

Chairman Gouveia wants the taxpayers to know the plus and minus of the buybacks.  We keep hearing the cost to the taxpayer of $660,000, but that is not correct.  The School Department does have a premium.  There are 137 contracts out there that get buybacks.  That total cost of the buyback to the taxpayer is $629,636.  Where does the premium come in?  137 contracts cost the School Department an administrative premium to Blue Cross of $156,043.  We are not self-insured for dental and those 137 contracts cost the School Department $143,049.  For those who have been speaking about buybacks, you should have known this.  These two premiums come out to $299,092.  Those are known costs.  I agree with the Mayor and Councilman Midgley totally that the ideology of paying someone money for not taking a benefit is horrible and will be addressed during the next contract negotiations.  If you take the 137 contracts, if they don’t have children, that is 274 people.  The average prescription cost per contract last year was $1,748.  If 137 of the 274 people had average prescription costs of $1,748, that is a cost of $239,476 for a total savings about $70,000.  So when we hear $660,000, that is not real, take the net savings from that.  I still believe buybacks have to be done away with.  We do need help from our bargaining units.  They have to understand the taxpayer cannot keep footing the bill. 

Mayor Larisa states that we do all need to sit down and talk.  When we talk about Police and Fire, if the teachers agreed to the Police and Fire co-pay on prescription drugs, we could all go home right now.  This isn’t even a co-pay on healthcare.  There is no premium paid, we’re self-insured.  There is a Blue Cross administrative fee on claims paid.  That is not considered a premium.  My number showed 143 getting a buyback, Chairman Gouveia shows 137, but the big thing is that 25 of those people where there absolutely is no cost because they are already in the system, a husband and wife with both in the School Department.  So if we end the buyback, we’re not adding anybody.  That is a huge amount not accounted for in the 137.  The Blue Cross number, I don’t know where the $156,043 comes from because even if you add 100 people into the plan, if they have no claims, we pay Blue Cross nothing.  We only pay 10% of any claims they have.   The point is the buybacks could save significant money.  And we all agree it is just bad policy.  We can’t hide behind the contract and say we’re going to fix it three years from now.  This is something we can do right now.  I implore Chairman Gouveia and Mr. Faria to change their vote and fix this problem for November 1^st.  At least we’re making a move for the taxpayers.  We all need to work together to bring this to the table.

B.  REPORTS OF OTHER CITY OFFICIALS

CLAIMS COMMITTEE (By William J. Conley, Jr. City Solicitor)

No claims report.

C.  COUNCIL MEMBERS

1) “Snow Removal”

Councilwoman Perry states a few meetings back, a resident from Ward 3 addressed the Council on snow removal around the Kent Heights School and wants to report that the highway workers did an excellent job removing snow from the streets and the School Department did a wonderful job on the paths.  The paths are now clear and the children can walk safely to school.

2) “Warren Avenue Streetscape Kickoff”

Councilwoman Perry states that this kickoff will begin sometime in March.  Invitations will be sent out by the Planning Department and a ceremony will be held somewhere between Lyon Avenue and Broadway and will announce the time and date very soon.

D.  RESOLUTIONS

The following Resolution supports US Senate Bill 1479 and House Bill 3427, known as the Lyme and Tick-Bourne Disease Prevention, Education, and Research Act of 2005.

WHEREAS, the City of East Providence along with all communities within the State of Rhode Island have very high incidences of Lyme Disease and other tick borne illnesses; and

WHEREAS, cases of Lyme Disease and other tick-borne illnesses are increasing at an alarming rate; and

WHEREAS, surveillance has demonstrated a high correlation of the incidence of disease with the abundance of ticks and their geographic distribution; and

WHEREAS, the prevention of Lyme Disease and other tick-borne illnesses is best accomplished by a combination of public awareness, personal protection, and environmental measures; and

WHEREAS, laboratory tests for Lyme Disease and other tick-borne illnesses are not definitive, and consensus guidelines for diagnosis and treatment of long-term Lyme Disease have yet to be developed; and

WHEREAS, the East Providence City Council recognizes the seriousness and prevalence of Lyme Disease and other tick-borne illnesses with Southern New England; and

WHEREAS, the East Providence City Council encourages State and regional surveillance efforts and prevention initiatives that will provide a greater understanding of the transmission of Lyme Disease and other tick-borne illnesses.

NOW, THEREFORE, BE IT RESOLVED:  that the East Providence City Council requests our esteemed legislative delegation to vigorously support U.S. Senate Bill 1479 along with House Bill 3427, introduced to the 109^th Congress July 25, 2005 and July 26, 2005 respectively; and be it

FURTHER RESOLVED:  that the East Providence City Council calls for increased Federal funding for studies pertaining to the development of improved testing and treatment for Lyme Disease and other tick-borne illnesses; and be it

FURTHER RESOLVED:  that the City of East Providence asks for support from our State Legislature to direct the Rhode Island Department of Health to provide for the expansion of efforts concerning the prevention, education, treatment, and research activities relative to Lyme and other tick-borne diseases; and be it

FURTHER RESOLVED:  that a copy of this resolution be forwarded to the East Providence Legislative Delegation, Speaker of the House William Murphy, Senate President Joseph Montalbano, and to each municipality in the State of Rhode Island. (Requested By: Mayor Larisa)