| | CITY OF EAST PROVIDENCE RHODE ISLAND JOURNAL OF REGULAR CITY COUNCIL MEETING AUGUST 11, 2009 7:00pm Executive Session 7:30pm Open Session | |
The City Council meets in the Council Chambers on Tuesday, August 11, 2009 and Mayor Joseph S. Larisa, Jr. calls the meeting to order at 7:46pm.
The invocation is read by Councilman Perry and the Salute to the Flag is led by Councilman DiTraglia.
| Present: | Joseph S. Larisa | ) | Mayor |
| | Robert E. Cusack | ) | Council Members |
| | Valerie A. Perry | ) | |
| | Bruce DiTraglia | ) | |
| | Brian G. Coogan | ) | |
| | Richard M. Brown | ) | City Manager |
| | James P. Briden | ) | City Solicitor |
| | Kim A. Casci | ) | City Clerk |
A motion is made by Councilman Cusack to return to open session and to keep the minutes from executive session closed, seconded by Councilman DiTraglia and on a roll call vote it is unanimous.
I. THE CONSENT CALENDAR
A. Letters
1. RI Ethics Commission New General Commission Advisory 2009-1: Nepotism, dated 7/22/09.
2. Coastal Resources Management Council proposed policy changes, dated 7/23/09.
3. Coastal Resources Management Council Semi-Monthly Meeting 7/28/09.
B. Hawker (90 day)
1. Capuano Holding Corp. LLC, 94 Indian Trail, Saunderstown (02874)
A motion is made by Councilman DiTraglia to approve the consent calendar, seconded by Councilwoman Perry and it is unanimous.
II. APPOINTMENTS
A. Municipal Court Judge
Harry W. Asquith, Jr., 49 Hoyt Avenue (02916)
Councilman Cusack explained that Harry Asquith is a local attorney adding that a letter of resignation had been received by current Municipal Court Judge Patrick Rogers who noted he appreciated the opportunity to serve but personal circumstances are pressing right now between his family and his law practice and he gave the Council notice that the resignation would be effective as of September 1st. Mr. Asquith will be sworn in at the Council meeting on September 1st. A resume for Mr. Asquith was presented and he has been an attorney for many years, originally from the town of Lincoln he has lived in East Providence for many years now. His wife Patricia Asquith is a Family Court magistrate. He is well known in the community of East Providence for many years as a girls soccer coach, he has an excellent demeanor and judicial temperament, a highly qualified attorney, worked in criminal matters, dispute resolution and has practiced in all court levels in Rhode Island. Pat Rogers instituted some reporting of court activity to the Council, attorney Asquith will continue that level of reporting and analysis to the Council. A letter thanking Municipal Court Judge Patrick Rogers for his service will be sent out.
A motion is made by Councilman Cusack to appoint, seconded by Councilman Coogan and on a roll call vote it is unanimous.
B. Historic District Commission (by Mayor Larisa)
Stephen Greenleaf, 30 Holbrook Avenue (02916)
Councilman Cusack stated Mr. Greenleaf is a practicing architect and will do an excellent job. The people who have come forward to serve on this commission have been stellar.
A motion is made by Councilman Cusack to appoint, seconded by Councilman Coogan and it is unanimous.
C. Zoning Board of Review – Alternate #1 (by Mayor Larisa)
Richard G. Croke, 85 Hazelwood Avenue (02914)
A motion is made to appoint by Councilwoman Perry, seconded by Councilman Cusack and on a roll call vote it is unanimous.
D. Zoning Board of Review – Alternate #2 (by Mayor Larisa)
Peter F. Midgley, 78 Smith Street (02915)
Councilman Coogan wanted to make clear that Mikel Perry whose term has expired was an excellent Zoning Board official and had done nothing wrong and a letter thanking him for his service should be sent. Councilman Cusack echoed that as well as he had served with Mikel Perry. Mayor Larisa agreed and a letter thanking him for his service will be sent out.
A motion is made to appoint by Councilwoman Perry, seconded by Councilman Cusack and on a roll call vote it is unanimous.
A motion is made by Councilwoman Perry to move the block party requests up on the docket, seconded by Councilman Cusack and it is unanimous.
1. Gaile Crowell, 8 Gorham Street, Rehoboth, MA requesting to address the Council regarding blocking the corner of Mauran Avenue and Warren Avenue connector to Water Street on Saturday, September 12th, not to interfere with access to the East Providence Yacht Club for the purposes of the “Nathan D. Crowell Memorial Fund “Block the Shot” Motorcycle Run which will end at Houlihans at 28 Water Street.
Ms. Crowell passed out maps. This is the second annual. The block would be for 1:30pm until 6:00pm. Ms. Crowell will let the Yacht Club know about the event the entrance to their club will not be blocked. This event is for a memorial scholarship benefit for her son Nathan, who was killed in a hockey accident while playing in a league in college and will benefit students at the East Providence High School interested in pursuing a career in the field he had chosen while in college which was law enforcement, FBI and CIA, and they are also sponsoring a hockey league for kids and equipment if they can’t afford to buy it, called Nathan Kids.
A motion to approve is made by Councilman Coogan, seconded by Councilman Cusack and it is unanimous.
2. Dean Ventre/Roger Morrell, 16 Outlook Avenue (02914) requesting to address the Council regarding a Block Party on Saturday, August 22 from 4:00pm-11:00pm blocking off Outlook Avenue from Hawthorne to Brightridge.
This is their 3rd annual block party, flyers were passed out and all neighbors are aware and they know of no objections. They will not have a band or a DJ just a small stereo.
A motion to approve is made by Councilman Coogan, seconded by Councilwoman Perry and it is unanimous.
A motion is made to return to the regular order of business by Councilman Cusack, seconded by Councilwoman Perry and it is unanimous.
III. LICENSES REQUIRING PUBLIC HEARING
A. CLASS B-FULL PRIVLEGE VICTUALER
1. Lucky’s American Bar & Grille, Inc., 1175 Warren Avenue (02914)
Joseph A. Kern, Jr., 223 Pleasant Street, Rehoboth, MA 02769
Jay Kern and Craig Breiner are principles owners, Josh Slepkow is the attorney. They have plans to do both the interior and exterior of the building as well as the parking lot and landscaping. Behind the building there was a lot of trash being dumped there and into the wetlands behind that and they have cleaned that up. The principles handed out sample menus as well as back ground information and programs featuring architectural plans for the inside and outside of the restaurant. They will employ 12 full time employees, 6 part time and an additional 2 employees to help manage. This will be a lunch and dinner restaurant with a full service bar. The launder mat will remain in service as part of the stores on the property in addition to another piece that is available for a business to rent. Perhaps in the Spring they may put a year round sun room in the back. They will open in 2-3 months. Lunches will cost around $14 and dinners around $22. In the end they will have invested over a million dollars in this project. Jay Kern had stated he has been with the Fish Company downtown for 22 years and Craig Breiner has been working with large corporate restaurants as a manager for a number of years.
A motion is made to approve by Councilman Coogan, seconded by Councilman Cusack and on a roll call vote it is unanimous.
IV. LICENSES NOT REQUIRING PUBLIC HEARING
A. VICT/OVER 50
1. Lucky’s American Bar & Grille, Inc., 1175 Warren Avenue (02914)
The license will be until 1:00am on the liquor, 11:00pm on the food.
A motion is made to approve by Councilman Coogan, seconded by Councilwoman Perry and on a roll call vote it is unanimous.
V. PUBLIC HEARING – ORDINANCES FINAL PASSAGE
A.The following ordinance provides for the collection of mattresses, box springs and other bedding materials by the refuse collection contractor for a fee of $15 for each item.
A motion to dispense with the reading of the ordinance is made by Councilwoman Perry, seconded by Councilman Cusack and it is unanimous.
AN ORDINANCE IN AMENDMENT OF CHAPTER 6 O F THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “GARBAGE AND REFUSE.” Which amends Subsection (4) entitled “Miscellaneous items” of Section 6-39 entitled “Recyclable materials established” by adding thereto the following:
c. Mattresses, box springs and other bedding materials. All residential bedding materials such as mattresses, box springs or other items with similar characteristics as determined by the director of public works shall be collected by the municipal refuse collection contractor as scheduled by the public works department and separated to be recycled at the Rhode Island Resource Recovery Corporation facility; and by adding:
Sec. 6-47. Mattress, box spring, bedding material collection fee.
The fee for collection of a mattress, box spring or other bedding material, as defined in section 6-39, is hereby fixed at $15.00 dollars for each item.
Requested by: Director of Public Works
Mr. Riley was asked to speak at this point in the docket as this is a public hearing and his docket request item is directly related to this ordinance.
A. Communications
1. Tom Riley, 3620 Pawtucket Avenue requesting to address the Council regarding opposition to proposed mattress collection charges.
Mr. Riley stated that non owner occupied property owners pay a 17% increase over owner occupied property owners. Non owner occupied property is presently paying more than residential and he states he pays more than $30,000 a year in taxes on his properties. A typical move out involving furniture and bedding costs over $2,000. If it’s $15 per item with box spring it’s $30. The ordinance reads per item is that headboard, footboard etc…Mayor Larisa stated it’s just for the bedding that is charged at the landfill, bedding material only, mattress and box spring. Mr. Riley continued these items are recycled, Cardi’s etc… bring the used beds to New York where they are stripped, rebuilt and are sold in a discount mattress store. There might be a better way to handle this then taking to the landfill. The City would need to centralize the collection of these. Mayor Larisa stated Resource Recovery is recycling them their fee to the City is $15. If there is a way to do a central collection and ship them to New York for less then pass this information on to Director Steve Mutter for research.
Mr. Riley asked how will charging a disposal fee to residents stop non residents from abandoning bedding? That answers the argument last Council meeting which was that non residents were dropping off mattresses.
Mayor Larisa said the City will pay to pick them up but the $15 charge per mattress that Resource Recovery charges is transferred to the mattress holder. It is the same thing the City does with appliances. Mayor Larisa added that Mr. Riley should speak with Director Mutter and if there are better ways to handle the situation the ordinance can be amended at that time, meanwhile the Council will vote this ordinance for second passage.
A motion to approve is made by Councilwoman Perry, seconded by Councilman Coogan and on a roll call vote there is one nay from Councilman DiTraglia.
B. “The following ordinance would allow the Fire Alarm Inspector to charge a fee of $100 for every re-inspection for the acceptance of a sprinkler system, suppression system or fire alarm system.”
A motion to dispense with the reading of the ordinance is made by Councilwoman Perry, seconded by Councilman Coogan and it is unanimous.
AN ORDINANCE IN AMENDMENT OF CHAPTER 5 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “FIRE PREVENTION”, which amends
Sec. 5-31 entitled “Inspection of nonresidential structures and dwelling generally” of Article II entitled “Inspections, Compliance and Violations of Fire Safety Code”
Sec. 5-31. Inspection of nonresidential structures and dwelling generally.
(a) The chief of the department or his designate is hereby authorized and directed to make inspections to determine the condition of any nonresidential structure or dwelling place of four or more units in order that he may perform the duty of safeguarding the health, safety and welfare of the occupants of nonresidential structures or dwelling places of four or more units, and of the general public. For the purpose of making such inspections the chief of the department or his designate is hereby authorized to examine and survey between the hours of 8:00 a.m. and 5:00 p.m. any nonresidential structure or dwelling place of four or more units. The chief of the department or his designate and the owner, occupant, or other person in charge of any nonresidential structure or dwelling place of four or more units may agree to an inspection by appointment at a time other than the hours provided in this section.
(b) The fire department shall assess an inspection fee of one hundred ($100.00) dollars per inspection for any inspection performed by the fire department’s fire alarm inspector pursuant to Chapter 5 of the revised ordinances of the City of East Providence or any provision of the Rhode Island Fire Safety Code including any rule or regulation of the state fire marshal pertaining to the inspection for final approval of any approved fire alarm system or fire suppression system. In the case of any commercial, industrial, manufacturing, educational, religious or governmental use, the fee shall be payable by the licensee of the property inspected if the occupant of the property inspected holds any license issued by the State of Rhode Island and Providence Plantations Department of Labor and Training. Otherwise, the fee shall be payable by the lessee of the property inspected or, if none, then by the owner of the property. In the case of any residential property, the fee shall be payable by the owner of the property.
The fee shall be waived if, after the final acceptance inspection, no violation of any provision of the revised ordinances of the City of East Providence or the Rhode Island Fire Safety Code including any rule or regulation of the state fire marshal has been found. Each subsequent re-inspection shall constitute an inspection for which a separate fee of one hundred ($100.00) dollars shall be payable. The foregoing fee waiver provision shall not apply in the case of any inspection required for the board of licenses for the issuance or transfer of any license under its jurisdiction. No inspection fee shall be assessed against the City or any department, board, or commission thereof.
Requested by: Fire Chief
The Chief stated the intent of the ordinance is not to raise money however businesses are required by law to obtain a fire inspection and they are to notify the inspector when they are ready for inspection. The inspector works with them prior to go over all that they have to do. Then asked them to call when ready. Last week alone there was a repeat of four inspections because the business wasn’t ready after they had called the fire inspector to arrange the date. The City Manager stated the funds go into the Inspection Account and the City makes transfers from the accounts to cover the cost we incur operating the program. The Chief added roughly we do about 200 inspections a year at least on fire alarm systems so far this year we have gone back 30-40 times. With the initial inspection there is no fee. If it fails on the second inspection there would be a $100 fee. We make every effort to assist the business. If this becomes ordinance everyone will be aware of it and it can be put in bold print with the other fees that are already listed.
Councilman DiTraglia objected to the fee due to the fact that the inspector is being paid for 8 hours every day and that is what he is doing and he objects to any additional charges for businesses and stated that the ordinance is not business friendly.
The Chief noted this is only for new construction or any remodeling requiring an upgrade to any system.
Councilman Coogan asked what if it is split first violation $50, second $100.
Councilman DiTraglia disagreed and said it should be free.
A motion is made to approve by Councilman Cusack, seconded by Councilwoman Perry and on a roll call vote Councilman DiTraglia votes nay.
C. The following ordinance increases the water rates to $4.46 per hundred cu. Ft. effective November 1, 2009; $ 4.90 effective November 1, 2010; and $4.96 effective November 1, 2011.
A motion is made to dispense with the reading of the ordinance by Councilwoman Perry, seconded by Councilman Cusack and it is unanimous.
AN ORDINANCE IN AMENDMENT OF CHAPTER 17 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “UTILITIES.” Which amends Subsection (c) of Sec. 17-183 entitled “Charges to be based upon water consumption; rate” to read as follows:
(c) Effective November 1, 2009, the water consumption portion of the sewer charge shall be at a rate of $4.40 4.46 per hundred cubic feet of water used based upon the actual quarterly or monthly meter reading of water consumption less an annual exemption of 3,500 cubic feet. Such exemption shall be prorated quarterly or monthly for users of city water who are billed on a quarterly or monthly basis.
Effective November 1, 2010, the rate per hundred cubic feet of water will increase to $4.90.
Effective November 1, 2011, the rate per hundred cubic feet of water will increase to $4.96.
Requested by: Director of Finance
This is the waste water rate not the water rate. The current rate is $4.40 and it will be $4.46. Borrowing $10 million from Clean Water Financing who is using stimulus funds, the funds will provide for various repairs at the plant, $1.6 million will be forgiven for repayment. This is a revenue bond and we have to certify that we have revenue to repay the bond. These funds will be used for nitrogen reduction as mandated by DEM.
A motion is made to approve by Councilman Cusack, seconded by Councilwoman Perry and on a roll call vote it is unanimous.
C. The following ordinance approves the issuance of bonds not to exceed $6,000,000 to finance improvements to the East Providence water system.
A motion is made to dispense with the reading of the ordinance by Councilwoman Perry, seconded by Councilman Cusack and it is unanimous.
AN ORDINANCE OF THE CITY OF EAST PROVIDENCE APPROVING THE FINANCING OF IMPROVEMENTS TO THE EAST PROVIDENCE WATER SYSTEM AND ALL ATTENDANT EXPENSES INCLUDING BUT NOT LIMITED TO ENGINEERING COSTS AND APPROVING THE ISSUANCE OF WATER REVENUE BONDS AND NOTES THEREFOR IN AN AMOUNT NOT TO EXCEED $6,000,000
WHEREAS, in the interest of public health and safety, the City of East Providence (the “City”) desires to make certain improvements to the City’s water system, which improvement together with all attendant expenses including but not limited to engineering costs in connection therewith are hereinafter referred to as, the “Project”;
WHEREAS, the Rhode Island Clean Water Finance Agency (the “Agency”) is offering a program (the “ARRA Program”) through which funds it will receive through the Federal Economic Stimulus Act, Public Law 111-5, known as the “American Recovery and Reinvestment Act of 2009” will be loaned to eligible borrowers for the purpose of financing high priority infrastructure projects needed to ensure clean water in the State of Rhode Island;
WHEREAS, a portion of the principal of all projects funded under the ARRA Program will be forgiven;
WHEREAS, the City desires to participate in the ARRA Program by borrowing an amount not to exceed Six Million Dollars ($6,000,000) from the Agency in accordance with Title VI of the Federal Clean Water Act and Title 46-12.8 of the Rhode Island General Laws, for the purpose of financing the Project;
WHEREAS, the City desires to issue an amount not to exceed Six Million Dollars ($6,000,000) water system revenue bonds (the “Bonds”) or interest bearing or discounted water system revenue notes (the “Notes”) in anticipation of the issue of said Bonds of the City, at one time, or from time to time for the purpose of evidencing the borrowing described above;
WHEREAS, Chapter 46-12.8 of the Rhode Island General Laws, pursuant to which the Bonds or Notes will be issued, provides that notwithstanding any municipal charter to the contrary, all local governmental units shall have the power to issue local governmental obligations payable solely from drinking water system revenues pursuant thereto without limit as to amount, and the amount of principal and premium, if any, and interest on the obligations shall not be included in the computation of any limit on the indebtedness of the local governmental unit or on the total taxes which may be levied or assessed by the local governmental unit in any year or on any assessment, levy, or other charge made by the local governmental unit on any other political subdivision or instrumentality of the State of Rhode Island;
WHEREAS, notwithstanding the foregoing provisions of Chapter 46-12.8 of the Rhode Island General Laws, the City desires to comply with the requirements set forth in Section 4.27 of the City Charter with respect to the issuance of bonds to the extent possible;
WHEREAS, the estimated maximum cost of the Project is $6,000,000;
WHEREAS, the period of usefulness of the Project is expected to be thirty (30) years; and
WHEREAS, the net debt of the City is not affected by the issuance of the Bonds or Notes as the Bonds and Notes will not be general obligations of the City but will be payable solely from drinking water system revenues.
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF EAST PROVIDENCE that:
SECTION 1. The sum of Six Million Dollars ($6,000,000) is appropriated for the purpose of financing the Project.
SECTION 2. In accordance with Chapter 46-12.8 of the Rhode Island General Laws, the Mayor and the Director of Finance are hereby authorized to borrow an amount not exceeding Six Million Dollars ($6,000,000) from the Agency, and to evidence such loan, such officers are hereby authorized to issue and refund on behalf of the City the Bonds, at one time, or from time to time in order to meet the foregoing appropriation.
SECTION 3. The said officers from time to time may issue and refund the Notes in anticipation of the issue of said Bonds.
SECTION 4. The Bonds and Notes shall be payable solely from drinking water system revenues. The City may issue bonds, notes, or other obligations on a parity with these Bonds as provided in the Trust Indenture (defined below). The manner of sale, amount, denominations, maturities, conversion or registration privileges, interest rates, medium of payment, and other terms, conditions and details of the Bonds or Notes may be fixed by the officers authorized to sign the Bonds or Notes.
SECTION 5. Pending the issuance of the Bonds under Section 2 hereof or pending or in lieu of the issue of Notes under Section 3 hereof, the Director of Finance, at the written direction of the City Council, may expend funds from funds of the City including the General Fund for the purposes specified in Section 1 hereof. Any advances made under this section shall be repaid without interest from the proceeds of the Bonds or Notes issued hereunder or from the proceeds of applicable federal or state assistance or from other available funds.
SECTION 6. The Mayor and the Director of Finance are also authorized, empowered and directed, on behalf of the City, to: (i) execute, acknowledge and deliver a Supplemental Indenture (the “Supplemental Indenture”) amending and supplementing the Trust Indenture dated April 1, 2004 by and between the City and U.S. Bank National Association (the “Trust Indenture”), and any and all other loan agreements, documents, certificates or instruments necessary to effectuate such borrowing; (ii) amend, modify or supplement the Trust Indenture, such Supplemental Indentures, the Bonds or Notes and any and all other loan agreements, documents, certificates or instruments at any time and from time to time, in such manner and for such purposes as such officers shall deem necessary, desirable or advisable; (iii) direct the Trustee with regard to investments of trust funds pursuant to the Trust Indenture, and (iv) do and perform all such other acts and things deemed by such officers to be necessary, desirable or advisable with respect to any matters contemplated by this Ordinance in order to effectuate said borrowing and the intent hereof.
SECTION 7. The Mayor and the Director of Finance are hereby authorized to deliver the Bonds or Notes to the purchaser and said officers are hereby authorized and instructed to take all actions, on behalf of the City, necessary to ensure that interest on the Bonds or Notes will be excludable from gross income for federal income tax purposes and to refrain from all actions which would cause interest on the Bonds or Notes to become subject to federal income taxes.
SECTION 8. This Ordinance is an affirmative action of the City Council of the City toward the issuance of the Bonds and Notes in accordance with the purposes of the laws of the State. This Ordinance constitutes the City’s declaration of official intent, pursuant to Treasury Regulation §1.150-2, to reimburse the City for certain capital expenditures for the Project paid on or after the date which is sixty (60) days prior to the date of this Ordinance, but prior to the issuance of the Bonds or Notes. Such amounts to be reimbursed shall not exceed Six Million Dollars ($6,000,000) and shall be reimbursed not later than eighteen (18) months after the later of (a) the date on which the expenditure is paid or (b) the date on which the Project is placed in service or abandoned but in no event later than three (3) years after the date on which the expenditure is paid.
SECTION 9. The Mayor and the Director of Finance are authorized to take all actions necessary to comply with federal tax and securities laws including Rule 15c2-12 of the Securities and Exchange Commission (the “SEC Rule”) and to execute and deliver a Continuing Disclosure Certificate in connection with the Bonds or Notes in the form as shall be deemed advisable by the Mayor and the Director of Finance in order to comply with the SEC Rule. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate, as it may be amended from time to time. Notwithstanding any other provision of this Ordinance or the Bonds or Notes, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered an event of default; however, any Bondholder or Noteholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section and under the Continuing Disclosure Certificate.
Requested by: Director of Finance
This is the Water Bond to borrow $6 million from Clean Water Finance Agency for water improvements to repair the water lines the anticipated forgiveness will be even better approximately 23% for the water bonds. About $1.3 million will be forgiven. There are fewer people looking to borrow so more funds are spread out. The total increase should be .15 cents and not until 2011. Both Mayor Larisa and Councilman Cusack made the point that the City is being required by DEM to do a lot of new things and in fact have saved millions by not building the new plant prior and then have to build a new plant for the new mandates, like Woonsocket has to do.
A motion to approve is made by Councilman Coogan, seconded by Councilman Cusack and on a roll call vote it is unanimous.
D. The following ordinance approves the issuance of bonds not to exceed $10,000,000 to finance improvements to the East Providence water system.
A motion to dispense with the reading of the ordinance by Councilwoman Perry, seconded by Councilman Cusack and it is unanimous.
AN ORDINANCE OF THE CITY OF EAST PROVIDENCE APPROVING THE FINANCING OF THE CONSTRUCTION, EQUIPPING, EXTENSION, REPLACEMENT, REPAIR AND REHABILITATION OF THE CITY’S SEWER LINES, SEWAGE COLLECTION, AND SEWAGE TREATMENT SYSTEM AND ALL PRELIMINARY AND INCIDENTAL EXPENSES AND APPROVING THE ISSUANCE OF WASTEWATER SYSTEM REVENUE BONDS AND NOTES THEREFOR IN AN AMOUNT NOT TO EXCEED $10,000,000.
WHEREAS, in the interest of public health and safety, the City of East Providence (the “City”) desires to make certain improvements to the City’s sewer system, including the construction, equipping, extension, replacement, repair and rehabilitation of the sewer lines, sewage collection, and sewage treatment system and all preliminary and incidental expenses in connection therewith (the “Project”);
WHEREAS, the Rhode Island Clean Water Finance Agency (the “Agency”) is offering a program (the “ARRA Program”) through which funds it will receive through the Federal Economic Stimulus Act, Public Law 111-5, known as the “American Recovery and Reinvestment Act of 2009” will be loaned to eligible borrowers for the purpose of financing high priority infrastructure projects needed to ensure clean water in the State of Rhode Island;
WHEREAS, a portion of the principal of all projects funded under the ARRA Program will be forgiven;
WHEREAS, the City desires to participate in the ARRA Program by borrowing an amount not to exceed Ten Million Dollars ($10,000,000) from the Agency in accordance with Title VI of the Federal Clean Water Act and Title 46-12.2 of the Rhode Island General Laws, for the purpose of financing the Project;
WHEREAS, the City desires to issue an amount not to exceed Ten Million Dollars ($10,000,000) wastewater system revenue bonds (the “Bonds”) or interest bearing or discounted wastewater system revenue notes (the “Notes”) in anticipation of the issue of said Bonds of the City, at one time, or from time to time for the purpose of evidencing the borrowing described above;
WHEREAS, Chapter 46-12.2 of the Rhode Island General Laws, pursuant to which the Bonds or Notes will be issued, provides that notwithstanding any municipal charter to the contrary, all local governmental units shall have the power to issue local governmental obligations payable solely from wastewater system revenues pursuant thereto without limit as to amount, and the amount of principal and premium, if any, and interest on the obligations shall not be included in the computation of any limit on the indebtedness of the local governmental unit or on the total taxes which may be levied or assessed by the local governmental unit in any year or on any assessment, levy, or other charge made by the local governmental unit on any other political subdivision or instrumentality of the State of Rhode Island;
WHEREAS, notwithstanding the foregoing provisions of Chapter 46-12.2 of the Rhode Island General Laws, the City desires to comply with the requirements set forth in Section 4.27 of the City Charter with respect to the issuance of bonds to the extent possible;
WHEREAS, the estimated maximum cost of the Project is $10,000,000;
WHEREAS, the period of usefulness of the Project is expected to be thirty (30) years; and
WHEREAS, the net debt of the City is not affected by the issuance of the Bonds or Notes as the Bonds and Notes will not be general obligations of the City but will be payable solely from wastewater system revenues.
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF EAST PROVIDENCE that:
SECTION 1. The sum of Ten Million Dollars ($10,000,000) is appropriated for the purpose of financing the Project.
SECTION 2. In accordance with Chapter 46-12.2 of the Rhode Island General Laws, the Mayor and the Director of Finance are hereby authorized to borrow an amount not exceeding Ten
Million Dollars ($10,000,000) from the Agency, and to evidence such loan, such officers are hereby authorized to issue and refund on behalf of the City the Bonds, at one time, or from time to time in order to meet the foregoing appropriation.
SECTION 3. The said officers from time to time may issue and refund the Notes in anticipation of the issue of said Bonds.
SECTION 4. The Bonds and Notes shall be payable solely from wastewater system revenues. The City may issue bonds, notes, or other obligations on a parity with these Bonds as provided in the Trust Indenture (defined below). The manner of sale, amount, denominations, maturities, conversion or registration privileges, interest rates, medium of payment, and other terms, conditions and details of the Bonds or Notes may be fixed by the officers authorized to sign the Bonds or Notes.
SECTION 5. Pending the issuance of the Bonds under Section 2 hereof or pending or in lieu of the issue of Notes under Section 3 hereof, the Director of Finance, at the written direction of the City Council, may expend funds from funds of the City including the General Fund for the purposes specified in Section 1 hereof. Any advances made under this section shall be repaid without interest from the proceeds of the Bonds or Notes issued hereunder or from the proceeds of applicable federal or state assistance or from other available funds.
SECTION 6. The Mayor and the Director of Finance are also authorized, empowered and directed, on behalf of the City, to: (i) execute, acknowledge and deliver a Trust Indenture by and between the City and a corporate trustee selected by said officers (the “Trust Indenture”), one or more Supplemental Indentures relating to the Bonds and any and all other loan agreements, documents, certificates or instruments necessary to effectuate such borrowing; (ii) amend, modify or supplement the Trust Indenture, such Supplemental Indentures, the Bonds or Notes and any and all other loan agreements, documents, certificates or instruments at any time and from time to time, in such manner and for such purposes as such officers shall deem necessary, desirable or advisable; (iii) direct the Trustee with regard to investments of trust funds pursuant to the Trust Indenture, (iv) enter into intermunicipal agreements or amend existing intermunicipal agreements with other municipalities utilizing the wastewater treatment facility and regional collection system with respect to sharing cost of the Project, and (v) do and perform all such other acts and things deemed by such officers to be necessary, desirable or advisable with respect to any matters contemplated by this Ordinance in order to effectuate said borrowing and the intent hereof.
SECTION 7. The Mayor and the Director of Finance are hereby authorized to deliver the Bonds or Notes to the purchaser and said officers are hereby authorized and instructed to take all actions, on behalf of the City, necessary to ensure that interest on the Bonds or Notes will be excludable from gross income for federal income tax purposes and to refrain from all actions which would cause interest on the Bonds or Notes to become subject to federal income taxes.
SECTION 8. This Ordinance is an affirmative action of the City Council of the City toward the issuance of the Bonds and Notes in accordance with the purposes of the laws of the State. This Ordinance constitutes the City’s declaration of official intent, pursuant to Treasury Regulation §1.150-2, to reimburse the City for certain capital expenditures for the Project paid on or after the date which is sixty (60) days prior to the date of this Ordinance, but prior to the issuance of the Bonds or Notes. Such amounts to be reimbursed shall not exceed Ten Million Dollars ($10,000,000) and shall be reimbursed not later than eighteen (18) months after the later of (a) the date on which the expenditure is paid or (b) the date on which the Project is placed in service or abandoned but in no event later than three (3) years after the date on which the expenditure is paid.
SECTION 9. The Mayor and the Director of Finance are authorized to take all actions necessary to comply with federal tax and securities laws including Rule 15c2-12 of the Securities and Exchange Commission (the “SEC Rule”) and to execute and deliver a Continuing Disclosure Certificate in connection with the Bonds or Notes in the form as shall be deemed advisable by the Mayor and the Director of Finance in order to comply with the SEC Rule. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate, as it may be amended from time to time. Notwithstanding any other provision of this Ordinance or the Bonds or Notes, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered an event of default; however, any Bondholder or Noteholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section and under the Continuing Disclosure Certificate.
Requested by: Director of Finance
This is the bond for wastewater treatment which was passed a few minutes ago to raise the rates.
A motion to approve is made by Councilman Cusack, seconded by Councilman Coogan and on a roll call vote it is unanimous.
Councilman Coogan asked a question of Director McDonald, who checks the work of the Finance Director all the votes I cast are based on this information. The reply was in the case of the rates, the numbers are certified by the consultant Chris Woodcock, by our bond advisor Southwest and the attorneys over look all the paperwork. Mayor Larisa stated that the Council’s job is to oversee and make sure it’s going to the right place and that people can afford it. We are under a mandate from DEM and then there are the water mains that need to be replaced then we have to find a way get the money to cover the repairs. The City Manager added that revenue estimating is what we do during the budget process and they do go through levels of review outside of City Hall by experts. Generally those meetings occur between the Finance Director and the consultants.
NEW BUSINESS
A. City Managers Report (by City Manager Brown)
1. Request for Qualifications CDBG City Sidewalk Replacement
The City has issued an RFQ for firms to do sidewalk repair using Community Development Block Grant money for construction companies and qualifications were submitted. The Director of Public Works and the City Engineer have recommended Catalano Construction, Narragansett Improvement and Tower Construction and are looking for Council approval of the three firms listed under the RFQ. There were four in total that had applied and one was deemed not qualified because they did not have a track record for the type of work we were looking for.
Steve Coutu came up to answer Councilman Coogan’s question regarding where tree roots have uprooted the concrete slabs and as a fix the City has been putting in packed stone dust, it has been working well and is also a cost savings. When trees have to be replaced the Tree Warden Mike Bartlett is looking for tree species that have roots that go down as opposed to spreading out.
Councilman Coogan also asked if there was a list of streets that would be getting paved this year. The Director of Public Works said no not unless we hear from the State on stimulus monies. There will be a list of sidewalks which will be done once we establish that. We prefer for cost purposes to stay basically in one area as opposed to many different areas with a number broken sections.
A motion to approve is made by Councilman Cusack, seconded by Councilman Coogan and on a roll call vote it is unanimous.
2. Implementation of ICMA Report on Police Department Staffing Levels
The City Manager set up a power point presentation. The purpose of which is to briefly discuss the implementation of the ICMA report on police staffing levels. The report was commissioned by a previous council and the City looked into staffing requirements for fire and police. The first report which was received was the police report in February or March and is on the City website. The report shows an analysis of work load, deployment of personnel and the response time for those personnel. We have an enormous amount of surplus time to get patrol work done when you compare the amount of people assigned to the workload. 1/3 of the work is direct service, 1/3 administrative tasks and the last 1/3 community activity and directed patrol. There is still a spread that allows us to make alterations in the man power in the police department. The opportunity exists to reduce staffing. There will be minimal or no affect on service delivery. With reductions in the patrol division, there is minimal manning to be considered, taking all this into account our personnel director has computed the minimal manning under the contract. This is 53 police officers, 8 detectives, 14 sergeants, 9 lieutenants and 3 captains. This would mean an authorized staffing of 87 versus what we have now 104. We could eliminate 17 positions and save over a million dollars. The school resource officers will be open to discussion. We are looking at eliminating a lot of the specialized units such as community policing, traffic officers and reducing the number of detectives and having the patrol pick up the slack of those specialized activities. There is sufficient time and flexibility within the patrol division to assume that responsibility. The budgeted versus the actual reduction indicates right now there are 104 budgeted officer with 100 filled, the reduction down to 87 based upon the actual numbers would be a total of 13 and we are still close to the million dollar range. This plan is doable and allowed under the collective bargaining agreement making those alterations within the specialized units.
Copies of the presentation and the whole report are available on the City’s website.
The City Manager stated this could be done through attrition or layoffs. Because of the cuts in State Aid the inclination is to move to immediate layoffs. The community policing and the traffic would go away as separate units but the activity under patrol would continue. When we make the reductions there will still be some over capacity but we do need to have some over capacity for officers interact in their patrol area and get reports done and other tasks. By contract the number of detectives is based on the number of patrol officers and once that number comes down we are allowed to decrease the number of detectives. The City Manager stated he is planning on implementing this because we have a budget shortfall which we must meet before the end of the fiscal year. This was for notification to the Council and the general public. You can put this off but every Council meeting you delay is resources I cannot recover by the end of the fiscal year. The City has to save about $1.2 million due to the loss in State aid. We might have some additional revenue and we will cut back on some expenses. There is a difference of at least $900,000 right now. This plan would be referred to personnel and we would have them take action immediately. There is nothing that I am aware of in making these reductions that would compromise public safety. If an incident occurs we can always bring people back to the scene to deal with that issue. The selection would be the last in the first out. This allows reductions to be made in the police department without having the baggage transferred to the new chief. We are also looking at other departments but this is the one I feel we can move on immediately. Councilman DiTraglia wanted to know why the City Manager couldn’t do a plan affecting all departments not just singling one out in order to spread out the layoffs among departments.
The City Manager replied that next year we will be looking at even more reductions as we receive even less in revenue sharing. The three largest areas of expense are Police, Fire and Public Works. While I appreciate the idea of equity among departments we have taken many steps such as subcontracting on trash collection, there is a study for the fire service, an RFP for custodial services but some of our departments right now are so small that making reductions in those departments would effectively eliminate the service completely and that is just not appropriate. We have been making reductions in our operating departments by just leaving positions unfilled. The study did go out to Council and it was on the website but we are nearing the end of the fiscal year and its crunch time.
Mayor Larisa stated we are trying to hold true to our 3.5% tax cap this council is an equal opportunity budget cutter. This is simply a function of what the City of East Providence can afford. 75% or more of our budget is on salaries and benefits so there is only so many other places we can go. The Governor and the General Assembly cut the budget to us in June which created a crisis beyond our regular crisis.
Councilman Cusack said 5% across the board can sound fair but some departments might be managed better than others so they really need to be looked at individually. If you have a 3 person department you can’t get rid of 1/3. The ICMA report states the police department is overstaffed. They may say they are not. But there is an independent consultant that says so. Nothing is perfect, the consultants can be wrong. It sounds good to say across the board but that is not necessarily feasible. Does it change the overstaffing in the police department even if there are say 3 jobs at City Hall that can be eliminated? These cuts are just the beginning we have to look at more next year as well.
B. Reports of Other City Officials
1. Claims Committee Report (by City Solicitor Briden)
Pursuant to R.I.G.L. § 42-46-5(a)(2), a motion is made by Councilman DiTraglia and seconded by Councilman Cusack to convene in closed session for the purposes of discussing claims & litigation. Upon a roll call vote: the motion is approved 5-0.
NEW CLAIMS
ARTHUR ARAUJO $Undetermined
RM No. 09-069, Claim No. 09-039
Claim for personal injuries sustained while in the process of being carried on a stretcher by rescue personnel. Recommend referral to insurance carrier..
Motion by: Councilwoman Perry Seconded by: Councilman DiTraglia
Motion: Refer the claim to the insurance carrier - unanimous.
MARION DOBOSZ $436.63
RM No. 09-066, Claim No. 09-036
Claim for property damage to vehicle sustained as a result of striking a pothole at the entrance of Bold Point Park. See recommendation of the Director of Public Works.
Motion by: Councilman DiTraglia Seconded by: Councilwoman Perry
Motion: Deny the claim - unanimous.
AMY KING $178.59
RM No. 09-065, Claim No. 09-035
Claim for reimbursement of expenses incurred for damage to vehicle sustained as a result of striking a pothole on North Broadway. See recommendation of the Director of Public Works.
Motion by: Councilman Cusack Seconded by: Councilman DiTraglia
Motion: Refer the claim to R.I. Department of Transportation - unanimous.
GERALD TAMEO $6,800.00
RM No. 09-064, Claim No. 09-037
Claim for property damage to wall that was struck by a police vehicle. Recommend referral to insurance carrier.
Motion by: Councilman DiTraglia Seconded by: Councilwoman Perry
Motion: Refer the claim to the insurance carrier - unanimous.
PENDING CLAIMS
NABIL RASHID $2230.00
RM No. 09-047, Claim No. 09-028
Claim for property damage to vehicle sustained when branches from a City tree fell on top of claimant’s vehicle. The Claims Committee voted at its meeting held on June 2, 2009 to deny the claim. Claimant asked for reconsideration and at its meeting held on July 21, 2009 the Claims Committee voted to defer the claim to the August meeting.
Motion by: Councilman DiTraglia Seconded by: Councilman Coogan
Motion: Approve the claim in the amount of $1115.00 - unanimous.
MISCELLANEOUS
RICHARD AMARAL
18 WEST DRIVE
NOTICE OF LIEN
Request of Richard Amaral to pay the City $6,000.00 in full settlement of the City’s lien in the amount of $8848.00 for expenses incurred for the demolition of a mobile home at 18 West Drive due to a fire.
Motion by: Councilman DiTraglia Seconded by: Councilwoman Perry
Motion: Defer the matter to the next meeting - unanimous.
IAFF LOCAL 850 & CITY OF EAST PROVIDENCE
IMPASSE IN COLLECTIVE BARGAINING
Motion by: Councilman DiTraglia Seconded by: Councilman Cusack
Motion: Accept oral status report - unanimous.
A motion to accept the Claims Committee Report is made by Councilwoman Perry, seconded by Councilman Coogan and it is unanimous.
E. Council Members
1. “Approval of School Committee Deficit Reduction Plan”. (by Mayor Larisa)
We have been working with the School Committee and have put together a plan, as required by the Auditor General, because for the first time ever the City was insolvent. We were in the negative, revenue less than our expenses on paper. The Auditor General gave us an order to pay it down. For the next year there is going to be $300,000 savings from the Superintendents Special Education Reintegration and the Meals Tax, which is City money and we give 80% to the Schools and have been doing this for years to pay down the debt. Prior school committees have inappropriately used that money for operating expenses instead of to pay down the debt. This time it’s going to be put in a lock box to pay the debt down. This will be $500,000 a year. There is a building that the School is going to try to sell for $350,000. That’s $1,150,000 in the next year and then the $500,000 each year plus the Special Education Reintegration savings will also go to pay down the debt. The commitment is to use the lock box money and pay down the debt and it is all within the City’s 3.5% tax cap. There will be a clear break to Schools and City on any increased revenue, for example if the split is 60/40 then that is how the revenue will be divided up. The Caroulo Action that was filed early in the term of the last school committee is going away they do not want to move forward.
Councilman Cusack noted this is a responsible effort to pay down the deficit and points out that deficit is owed to places, such as Meeting Street School and Bradley Hospital, schools that help by taking in our special needs students. No payments were being made. It’s a multiyear plan based on a lot of forbearance that these institutions are going to have to give us. There are the votes to put this City into receivership if that is the only option we have. We are not going to be North Providence and other communities asking to raise taxes 20%. That is ridiculous. The General Assembly has not allowed that to happen but on a new fiscal year if they allowed them to jump to a 17% increase. What will that do to homeowners?
A motion to approve is made by Councilman Cusack, seconded by Councilwoman Perry and on a roll call vote it is unanimous.
2. “Update on Teacher Union actions to accomplish a 10% or more property tax increase or municipal bankruptcy.” (by Mayor Larisa)
If the legislation is passed or we lose in the courts the plan above is not doable and we would need to go to bankruptcy and void all contracts. It appears that the State Labor Relations Board has continued on for so long because there are 6 members on the board and it’s currently a 3-3 vote. There is not only a city tax cap but a state tax cap. Salaries and benefits in a down economy have to be adjusted to balance the budget. The school committee has the right to cut salaries and benefits in a reasonable manner to balance the budget. This is going to be a big test the unions have a lot of power at the State House. Majority Leader Fox is pushing binding arbitration which is not good for Cities and Towns. Binding arbitration is what got cities and towns into this mess, it’s what regulated minimum manning and other items that cities and towns can’t adjust in a down economy. Binding arbitration is ok when times are good but when times are bad it only benefits the members of that union. The Council will put a resolution together opposing this. The Council usually works together or has a decent relationship with our state delegation members we have not heard one word from any of our state senators or representatives. Regarding any of these issues or our resolutions we have submitted so we can only assume they are against us and that is a disservice to the citizens of East Providence. If you are against us then at least have the guts to stand up and tell the council that you disagree and let the tax payers decide who is right on those issues. If bankruptcy happens it’s not going to be on the council is going to be on them.
3. Noise Ordinance for Single and Multi-family Dwellings (by Councilman DiTraglia)
A couple of weeks ago we gave out a permit and I was receiving calls from 11:00pm-1:00am that there was loud music playing. I received a petition from 28 people who complained about the noise. When I called the police station they said they have a permit. I let them know these permits have noise ordinances. They didn’t send anyone down until around 11:30pm and the officers said everything was ok. Maybe we can have a home and a noise ordinance for single and multifamily homes. Solicitor Briden believes we might have something that already covers that and will look into this further. I wanted to bring this up to remind people who take out these permits that you cannot make noise after 11:00pm. If there isn’t anything on the books then at the next council meeting we can put this on the docket.
The City Clerk explained they had a one day entertainment license. They were having a band. Council does not vote on these. The police department makes the approval. There is wording in the license giving the police the authority to go down even before the time limit on the license and have them keep down the noise if the officer feels it is necessary. We have had 20 one day entertainments licenses recorded so far this year. Some are for business that just want entertainment for that one night, maybe ½ dozen for residential. The chief approves or denies these licenses.
Councilman Cusack wanted to know if we can have the residential licenses come before the Council for approval, other Councilors agreed. Solicitor Briden was asked to investigate this.
F. Adjournment
The City Council Adjourns in honor of State Representative Tom Slater who recently passed away. A motion to adjourn is made by Councilman Coogan, seconded by Councilwoman Perry and it is unanimous.
Attest: Approved: September 1, 2009
_______________
Kim A. Casci
City Clerk