I.          THE CONSENT CALENDAR

A.    Approval of Council Journals

1.      Executive Session April 14, 2009

2.      Council Work Session April 14, 2009

B.     Letters

1.      Notice of Re-Scheduling of Public Hearing, Coastal Resources Management Council, Coastal Development Regulations/Aquidneck Island Special Area Management Plan

2.      Notice of Re-Scheduling of Public Hearing, Coastal Resources Management Council, Wetland Walkover Structures

3.      Notice of New Property Number, 155-157 Woodward Avenue (02914)

4.      Notice of New Property Number, 35 N. Hull Street (02914)

5.      RIDEM Office of Water Resources/Water Quality Certification Program, Tockwotten Home

6.      RIDOT Roadway Investment – Local Equity Aid Program (RI-LEAP) Public Workshop date change

7.      4/17/09 Letter of Resignation from Roberto DaSilva – Juvenile Hearing Board

C.    Cancellation/Abatement

D.    Alcoholic Beverage Class F

1. St. Brendan’s School, Fundraiser for Scholarship, in memory of Lauren Zarembka, 55 Turner Avenue (02915) May 30

2. Holy Ghost Beneficial Brotherhood of RI, Annual Feast, 51 North Phillips Street (02914) May 29,30,31

3. St. Martha’s Church, Annual Feast, 2595 Pawtucket Avenue (02914) June 5, 6, 7

4. Trinity Brotherhood, Annual Feast, 146 Sutton Avenue (02914) June 5, 6, 7

5. St. Francis Xavier, Annual Feast, 81 North Carpenter Street (02914) June 19, 20, 21

6. Holt Ghost Brotherhood Mariense, Annual Feast, 846 Broadway (02914) July 3, 4, 5

7. Teofilo Braga Club, Annual Feast, 26 Teofilo Braga Way (02914) July 10, 11, 12

8. Holy Ghost Brotherhood of Charity, Annual Feast, 59 Brightridge Avenue (02914) July 17, 18, 19

E.     Peddler-Ice Cream

1.Jhony A. Colonia, DBA Palagi’s Ice Cream, 55 Bacon Street, Pawtucket (02860)

F.     Hawker

1.Rhode Ilin Ice Cream LLC, 137 Park Drive (02915)

A motion is made by Councilwoman Perry to approve the Consent Calendar, seconded by Councilman DiTraglia and it is unanimous.   

A motion is made by Councilwoman Perry to keep the minutes from the Executive Session closed as listed on the Consent Calendar, seconded by Councilman DiTraglia and it is unanimous. 

II.        APPOINTMENTS

A.Historic District Commission (by Mayor Larisa)

1. David Kelleher, 36 Riverside Drive (02915)

A motion to accept the nomination is made by Councilman Cusack, seconded by Councilman DiTraglia and it is unanimous.

                   B.Carousel Commission (by Councilman Cusack)

                        1. Stephen Costa, 86 Woodward Avenue (02914)

A motion to accept the nomination is made by Councilman Cusack, seconded by Councilman DiTraglia and it is unanimous.

                   C.Juvenile Hearing Board (by Councilwoman Perry)

                  1. Anel Pichardo, 34 Commack Road (02914)

replacing Roberto DaSilva for a term expiring 11/1/09

A motion to accept the nomination is made by Councilwoman Perry, seconded by Councilman Coogan and it is unanimous.

III.       PUBLIC HEARINGS

A. ORDINANCES

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

CITY OF EAST PROVIDENCE

CHAPTER 477

IV.       NEW BUSINESS

A.        CITY MANAGERS REPORT

1.  2009 Recovery Act: Edward Byrne Memorial Justice                       

Assistance Grant Application

City Manager Brown stated as part of the Economic Stimulus package the Administration has funded the 2009 Edward Byrne Memorial Justice Assistance grants. These are monies allocated to law enforcement agencies. After the allocations are made they apply for the manner in which they want to use these funds.  It was determined the City would like to allocate the $95,000 toward the purchase of three additional police cruisers, the match the City has to come up with for this purchase is $2,954.  Roughly a month ago the Fleet Manager indicated the City should be securing the three frontline vehicles for the Police Department.  I am asking for Council approval to accept this grant application. 

A motion to accept is made by Councilwoman Perry, seconded by Councilman Cusack and it is unanimous.

2.   Community Development Block Grant Budget

City Manager Brown stated the Council has before them the document containing the Community Development Block Grant allocations which the Council heard public comments on the previous two Council meetings. One question was would there be any additional funds because all possible allocations particularly in the service area were made.  We have received word that the City will receive an additional $16,731.40.  I have made preliminary recommendations to Council.  The first of which would be to fully fund the services allocation, by allocating $2,952 to the PAVE Program as Council seemed to have a great deal of interest in this program.  The EPPC have stated that they notice a nexus in their programs and PAVE and will work with the PAVE program to assist them in finding additional funds.  The other two areas that staff recommends are housing renovations an additional $10,000 and Family Services of Rhode Island’s Home for Abused Children which would receive the remainder$6,732.

Mayor Larisa stated the reason for the amount for the PAVE program is due to the maximum amount of the newly received funds which is allowed to go into that section.  Family Services was receiving zero and now will receive some funds.  The Housing Renovations will now be able to rehabilitate 11 homes instead of 10. 

Councilman Cusack questioned the amount this added up to as it appears to be higher than the $16,731. 

City Manager Brown indicated there is a mistake the increase is actually a total of $19,684 the $16,731 was the balance. 

Mayor Larisa stated they would like to assist the Samaritans but the only way to do that is to decrease the money just allocated to PAVE or under the public services section.

Councilman Coogan stated he would still give the funds to the Samaritans if the City couldn’t pull a bit from each of the others. 

Mayor Larisa recommended that the City put in $100 to put some money into the Samaritans which is a worthwhile program. 

Councilman Coogan stated he would still give the $500.

Mayor Larisa and Councilman Cusack stated that the City would still fund them the $100 which could help them next year with additional funding requests to the City. 

 A motion to approve the revised budget as presented at the last meeting and amended at this Council meeting by Councilman Cusack, seconded by Councilman DiTraglia...

Mayor Larisa interjected stating he just noticed the Big Brother allocation and due to the fact that he is on the Big Brother’s Advisory Board he asked to have the record reflect a new vote with Big Brother’s allocation removed.   

A motion to approve the revised budget as presented at the last meeting and amended at this Council meeting with Big Brother’s allocation removed is made by Councilman Cusack, seconded by Councilman DiTraglia and it is unanimous.

A motion is made to approve The Big Brother’s of Rhode Island allocation by Councilman Cusack, seconded by Councilman DiTraglia and it is unanimous with Mayor Larisa recusing himself.  

B.        REPORTS FROM OTHER CITY OFFICIALS

    1.Claims Committee Report (by City Solicitor James Briden)

Pursuant to R.I.G.L. § 42-46-5(a)(2), a motion is made by Councilwoman Perry, seconded by Councilman DiTraglia to convene in closed session for the purposes of discussing claims & litigation and the vote is unanimous. 

                                                                 NEW CLAIMS

ROBERT GOMES     $1475.74

RM No. 09-036, Claim No. 09-019

Claim for property damage to vehicle sustained as a result of a sink hole/void under the roadway.  See recommendation of the Director of Public Works.

Motion by:  Councilman Cusack                    Seconded by:  Councilman DiTraglia

Motion:  Deny the claim.

CLAUDETTE XAVIER        $100,000.00

RM No. 08-112, Claim No. 09-023

Claim for personal injuries sustained as a result of a slip and fall in the main lobby of City Hall.  Recommend referral to insurance carrier.

Motion by:  Councilman DiTraglia                 Seconded by:  Councilman Cusack

Motion:  Refer the claim to the insurance carrier.

A motion to accept the Claims Committee Report is made by Councilman Cusack, seconded by Councilman DiTraglia and it is unanimous.

C.        COUNCIL MEMBERS

1.      Use of playing fields by outside groups by Councilman Cusack

Councilman Cusack stated he placed this item on the docket because it is well known in the City that there are not enough fields for our kids to play on.  What happens is due to the fact that we have so few fields and there is a bit of negligence in caring for those fields we also have overuse by outside leagues.  The City uses those fields for the schools, the Parks and Recreation Department have programs where the fields are used and outside youth sports groups that are privately organized, funded and staffed, such as AYSO are using them as well.  What happens is the fields never get a rest and the turf deteriorates and the City then has wasted its investment renovating the fields and they can’t be used.  Outside groups serving kids outside of East Providence are advertising on line stating they are holding games at these fields and this is contributing to the overuse whether the outside groups are charged for that use or not.  We addressed this issue last year and it is happening yet again.  Another point is the field at Glenlyon is irrigated, last summer the water was never turned on and it deteriorated to the point that it could not be used. These regional outside teams need to find somewhere outside of East Providence to hold their games.  The number one priority should be for East Providence kids and we don’t want the fields to turn into dust bowls again after we have invested time and money in them.  The City Manager has looked into the situation with the Parks and Recreation Department and they have created a policy and procedure and it is my hope now that it  will be followed.  I will continue to work with the City Manager to assure these goals are achieved. 

Councilman Coogan asked if the Martin Middle School field was addressed last year.  

Councilman Cusack stated yes and was told it would not happen again.  I noticed on a website an outside organization was advertising they would be using it again.  When I contacted the City Manager he stated there is no permit issued for this use.  I asked that they be told they need to stop advertising they are using our field because we don’t know if they are making some kind of arrangement with the school and not going through the proper channels to obtain a permit. 

There is a fee schedule where they pay $75 a game, the case could be made that is a fair price, but before we charge anyone from the outside we need to determine first that the field is not being overused.   If they don’t have a permit then who is telling them they can use it?  I am going to speak with the School Department and let them know about this process and that there is overuse of the fields and that is why this policy is in place.  I would also like to know why the water wasn’t turned on at Glenlyon after we paid for an irrigation system.  Until an assessment is made as to current use and how much is ok we shouldn’t be allowing outside groups to use the fields.  To renovate a field costs $100,000 and their $75 a game will not pay for that. 

Mayor Larisa stated in the past Director Joe Crook would make all these assessments.  He asked the City Manager if the current Director is doing this. 

City Manager Brown replied they consider the events on an individual basis they have gotten further direction that we are more interested in supporting local activities then renting out.  We are also inquiring into the permits, some come in from an East Providence resident and seems to fall under the category of something we should do but then we find out they are contacting us for a more profitable activity. 

Mayor Larisa stated that Pierce Field charges a lot more and if there is rain there is no game on the field and the money from the rentals goes into maintaining the fields. 

City Manager Brown stated Pierce Field is operated differently and the charges are higher and do support the upkeep of the field. 

Councilman DiTraglia asked if the cost was $75 per game and was told yes.  He further stated our residents are having trouble using the fields and the fields are in poor condition.  Our taxpayers and kids don’t have time on their own fields and our residents come first and whatever is not used is the slot these outside teams should get. 

2.      Vote to support the repeal of the Caruolo Act by Mayor Larisa

Mayor Larisa stated several communities have passed resolutions to support the repeal of the Caruolo Act. For those who do not know this is the act that allows School Committees to sue the taxpayers in a community to get more funding for schools which would increase the tax rate.  In our community we are fortunate to have a current School Committee who is abiding by the tax cap. This is not happening in many Cities.  A suit in a Caruolo action means a tax increase.  Other Cities and Towns are asking us to join them in asking for the repeal of this act.  In our community we do not currently have an issue but since other communities support us I feel it is only fair for this Council to support them as well. 

Councilman Coogan stated he would vote for this but it seems we are discussing the Teacher’s every two weeks. 

Mayor Larisa stated that the problem he has is when you have a union spending tens of thousands of dollars on attorney’s fees and misleading information the taxpayers have a right to know.  I hear what you are saying but I value letting the people know what is going on. 

Councilman Coogan stated he understands this but feels the public knows what is going on.

A motion to approve the support to repeal the Caruolo Act is made by Councilman Cusack, seconded by Councilman DiTraglia and on a roll call vote it is unanimous.

3.      Police Chief Status by Mayor Larisa

There are a number of officers here tonight and I want to provide an update on the retirement of the Police Chief, especially due to some misinformation recently in the press.  Soon the City will embark on a search, an open search, inside and outside for a new chief to lead the department.  This could be someone already in the East Providence Police Department or someone from outside.  The City Manager will decide who will be the most qualified to lead the department.  The City’s position is that we are not going to limit our search to just the eleven in the East Providence Police Department that fill the qualifications outlined.  We don’t only hire from within when we hire a City Manager and we feel limiting our choice to only those in the department would be wrong as well.  In the interim, the City Manager will be appointing an Acting Chief who will be a member of the Rhode Island State Police.  There is rumor this is a State Police takeover, it is not.  A State Police takeover means there is wrongdoing in the department.  This is a request for an independent voice from the State Police to come in, give us an independent voice to report not to the Colonel but to the City Manager of our department, how it is running and if we can make improvements. This will be done while the City Manager is selecting a small committee to form a search inside and out for a new Chief.  It is not expected to take long 60-90 days at the most.  It is not intended to cast any aspersions on any member of the department all of which can apply for and win the Chief’s position.   At this time that is the City Manager’s position and he has the support of the Council. 

Councilman Coogan stated he does not have my support on this.  I feel as though there are quite a few men out there in our department that can do this job and usually it is the Major who takes over until a new Chief is hired from within the department. 

Councilman DiTraglia stated both interim and permanent should be chosen as Chief and he does not support this either. 

Mayor Larisa stated we will have Mr. Rossi come up in a minute but I just want to mention that I understand he represented to rank and file that myself and Councilman Cusack would not allow him to speak. This is false, the Council Rules of Procedure mandate including Council members that items go on the docket by 4:00pm on Thursday and he came in on Friday.  I also stated that anyone can speak if Council gives unanimous consent and I intend unless there is any objection to give Officer Rossi unanimous consent if he wishes to speak but it doesn’t have to do with any member of the Council not wanting him to speak but rather the Council Rules of Procedure which have to apply to all. 

Mayor Larisa made a motion for unanimous consent to allow Officer Rossi to come up and speak there are no objections and it is granted. 

John Rossi 29 Woodbine Street Riverside also President of the International Brotherhood of Police Officers Local 569 who represent members of the East Providence Police Department.

I respectfully suggest that the course of action that the majority of the City Council and City Manager are taking to bring in an interim chief from outside the department and hold a search for a new chief outside the department is in violation of our contract.  The whole truth of the matter is that this is against City Ordinance 12-2 which deals with the duties of the Police Chief and 12-4 which outlines the duties and powers of the Deputy Chief also known as the Major, Major DuBois.  The ordinance is quite clear that in the absence of the chief the next highest ranking officer will run the department.  The ordinance also is quite clear that when it comes to the duties and powers of the deputy chief that he runs the department in the absence of the Chief.  This is a vacancy nothing more, nothing less. There is no reason to bring a State Police officer in and it violates City Ordinance.  I don’t understand the Council’s thinking.  We talk about saving money, the City is going to have to reimburse the State Police for his salary.  That is probably more than the Major’s salary right now, who has a 30 year unblemished record, has been a deputy chief for 5 years and has run the department in the chief’s absence in the past. We have perfectly good people to run the department.  There is no criminal investigation going on or allegations of corruption.  The City made a sweetheart deal with the chief to leave, this is a power grab and a violation of our contract. 

Councilman Coogan asked what the percentage was of the most recent meeting on a vote on whether or not they want an outside chief to come in. 

John Rossi stated they had 72 members at a special meeting held yesterday and a motion was made regarding fulfilling our contract and it was a unanimous vote.  We are opposed to the State Trooper coming in and a search including outside the department.  We met with Solicitor Oliveirio, we have been very reasonable, we asked you to let the Major run the department if you want to do an outside search, it’s a violation of our contract, we would even agree to an expedited arbitration, no problem, but give us some breathing space.  All you are going to do is bring someone in that basically doesn’t need to be here, under the law they are not the police chief. 

Councilman Coogan stated since you voted no confidence in your chief what is the atmosphere now is there still inside fighting? 

John Rossi stated it is a mistake to think we are not united on this issue, we are to the man.  We are 100% opposed to this action, it has never been done, going back to 1898 the chiefs have all been East Providence Police Department officers.  If you go to the Labor Board and get the certificate from 1963 it has every member including the chief and the deputy in the bargaining unit.  That was changed in 1991 or 1992.  There used to be a test to become the chief or the deputy, we bargained them out of the unit in good faith and the City promised to fill the position as stated in the contract.  This was brought up in negotiations signed in July with City Manager Brown who didn’t want this to remain in there.  I gave him the bargaining history of what happened and stated it was going to remain in the contract.   Since we were receiving a 0% pay increase I did not feel it was unreasonable to leave them in there.  We took the 0% and now you’ll do what you want anyway.  There is no negotiation with this Council, its just litigation.  So we will litigate.  We are not answering to whoever you bring in because he is not the Chief of Police, he is not going to be recognized we are going to report to the rightful acting Chief Donald DuBois because that is what the law states.

Councilman Coogan asked if at any time the City Manager indicated anything different or did he flip flop on the issue.

John Rossi said no but there was an article in the Pawtucket Times by Donna Kerwin that quoted the City manager stating that it was absolutely untrue that the State Police were coming in to run the Department.  The City Manager stated he was misquoted, Donna Kerwin stated she did not misquote him.  There is the thought that we won’t be united and it is not going to happen.  We deliver the lowest crime rate per capita in the state.  Officer Toomey caught the miscreant that Councilman Cusack discussed who was destroying that field with a 4X4.  We do our job. The latest poll that Fazioli put out stated 85% of the people are happy with our services.  What are the State Police going to do here report back on an agency that works fine? 

Councilman Coogan asked if he thought that the problem was the leadership because you voted no confidence. 

John Rossi stated your removal of him was your choice, the problem is gone.  An East Providence policeman with an unblemished record can’t run the police department?

Councilman Coogan stated let’s say we were to have the Major as the acting chief who can apply inside the department for the position of chief?

John Rossi replied Lt 5 years or more that is what the contract says and that is what we live by and that is all we are asking the Council to do.  We will have to do informational picketing because we live up to the letter of the law.  The Trooper is not going to find anything, it was false that internal affairs documents were being destroyed and we still have a problem with the IT Director going into our internal affairs files.  We would go to arbitration and if the City wins fine but don’t bring the Trooper in. I spoke with the Colonel there and I let him know that by their coming in they are violating our contract. 

Councilman Coogan stated he just wanted it known for the record that he was not in favor of the State Trooper coming in. 

Mayor Larisa stated we agree to disagree and Mr. Rossi was eloquent as usual in his presentation.  Let’s hope the reasonableness stays in place. This is not a hack coming in this is a State Police Trooper a member of one of the most highly recognized police forces in the United States of America and we hear we are not going to listen to him.  That is a problem.  And when we say everything is perfect I will not get into that tonight, but that is not true everything is not perfect within the police department, we have two no confidence votes and now that the Chief is gone everything is fine, that is not true we get letters on top of letters, phone calls and emails and discussion being brought to the Council including Councilman Coogan bringing them here.  We want to know what is going on in there, the public wants to know what is going on in there. Criminal activity no we do not believe it is that. However, there are morale problems and factions and this has been going on for a while.  All we want is an independent voice in there to let us know what is going on.  Does that mean that at the end of all this the City Manager won’t select someone from in the department, no it doesn’t, but what it means is the Union’s position that the City Manager can’t look outside and we think that is just wrong. Talking about the law, I have read the law a number of times, on the contract, the Police Union wanted from the beginning that we must hire from within and the City has resisted that for years.  There is a provision in the contract that says it’s the goal to hire from within so far as practicable the City will choose the permanent Chief from within if not practicable the City can go outside.  This provision does not mandate that it must come from inside and there is nothing saying the City Manager won’t choose from inside one of the 11 from inside may win but he has the right to chose from outside.  This is no mandate that is not what the language says.  On the ordinances referenced say in the absence of the chief the deputy chief shall run the department the City Manager is going to appoint a chief therefore the deputy chief will no longer be running the department the chief the City Manager is going to appoint will be called the acting chief.  So right now the deputy chief because there is no chief appointed is running the department.  Once the City Manager appoints the acting chief there is no department for the deputy chief to run because there will be a chief. We can agree to disagree on this but I hope cooler heads prevail because if things go crazy then we would have to wonder if there is a bigger problem than we know at the police department than we thought.  I am not going to get into the myriad of things week after week that this Council has heard and seen on investigations, officers being brought up to the State Police to give testimony and then they are told they are the target of investigations and have to plead the 5^th Amendment.  We are not going to get into all of this tonight because I could go on for an hour.  I don’t believe that requires us to go outside to pick a chief and the City Manager doesn’t either, all we want is an independent voice to come in, everything to work as it has, the dissidents who voted against the chief will have an independent voice to have their say.  At the end of the day if this all works out the City Manager may, might, probably will appoint someone from inside the department but if it doesn’t he has the right to appoint someone from outside. That’s all this is about it’s nothing more than that. 

Councilman Coogan stated that former Chief Dias was in the hallway and maybe we should call him up for his opinion. 

Mayor Larisa stated that we had unanimous consent for Officer Rossi as part of the union had asked to speak and at this time I do not believe we need to hear from others.  Of course everyone is welcome to come to speak at future council meetings by getting on the docket.

4.      Wanted:  Board and Commission Members by Councilwoman Perry

I was going through the various boards and commissions and we have quite a few vacancies.  Several years ago we put an article in the newspaper with the various boards and I would ask the City Clerk to prepare a press release. 

Mayor Larisa I would like the City Clerk to circulate the openings to the Council first in case they already have someone in mind and then do the press release.

City Manager Brown stated that the form for those interested in a position, if it is not still on the website, should be put back on. 

Councilwoman Perry said the form was up. 

Mayor Larisa asked if the vacancies were listed on the website. 

The City Clerk replied not at this time but adjustments to the website are being worked on.

Mayor Larisa stated when this is completed we can give the website information to residents at a Council meeting. 

5.      Discussion of City cell phones by Councilman Coogan

I would like to remove this from the docket and wish not to discuss it. 

6.      Discussion of City Vehicles with vote to remove any personal use of a City vehicle with the exception of the City Manger by Councilman Coogan

I put this on the docket to see if we could save money, particularly with the Captains cars but I have learned since then for example, that Captain Hogan came back to work on the computers for five hours, Captain Barlow has come back at different times for homicides such as the one in Rumford, Captain Charboneau also comes back and checks on his officers on his own time.  I feel that the Police Department has been beat up enough at this time and I wish to remove this item. 

Mayor Larisa stated I was never in favor of this because of the reasons you stated but I never defined personal use as the use of commuting on duty but taking the vehicle on the weekends or when not working just using the cars to go to baseball games or on trips etc...  The City Manager has promised this doesn’t happen and we learned it may be happening and we are doing something about it.  Are you in favor of the Captains having the cars on personal time to do stuff?

Councilman Coogan responded about a particular instance with Captain Hogan that it was done on the way back from the department.

Mayor Larisa interjected that he is not talking about individual instances but talking about in the future to make sure it is not being used for personal use. 

Councilman Coogan stated the City Manager was supposed to get a signed contract from each City Worker that they were not supposed to use the cars for personal use and that was three months ago and I have waited on various reports and I am disgusted with the City Manager.

Mayor Larisa said he has the signed contracts on all City workers except the three captains so my question is are you in favor of personal use by the three captains? Not commuting just using the cars to go somewhere.

Councilman Coogan stated he is not in favor of the City Manager who takes a car home for personal use either, nobody should be doing that. Is the City Manager going to sign one of those forms as well?

Mayor Larisa stated he would strongly object to that because it was expressly part of the City Manager’s compensation package or the City could pay him $10,000 more and take away the car but he is entitled to use the car for local personal use as part of his compensation package.

Councilman Coogan stated he is not in favor of him using it at all for personal use.  He wants to remove this item from the docket.

Mayor Larisa did not object and the request is accepted.

D.        RESOLUTIONS

1. STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

CITY OF EAST PROVIDENCE

RESOLUTION NO 13.

A RESOLUTION DETERMINING CERTAIN MATTERS RELATING TO THE

TIME AND MANNER AT AND IN WHICH THE $2,000,000 BONDS OR NOTES

FOR THE PURPOSE OF FINANCING THE REPAIRS, RENOVATIONS AND IMPROVEMENTS TO CITY ROADS AND DRAINAGE SYSTEMS SHALL BE

ISSUED AND SOLD AND AUTHORIZING THE DIRECTOR OF FINANCE AND

THE MAYOR TO DETERMINE CERTAIN OTHER MATTERS RELATING HERETO

            Pursuant to Chapter 598/608 of the Rhode Island Public Laws of 2006 and a vote of the electorate on November 7, 2006, an amount not to exceed $5,000,000 is authorized for the purpose financing repairs, renovations, and improvements to City roads and drainage systems (hereinafter referred to as the “Project”).

            The Council of the City of East Providence has by Ordinance (Chapter 424) and by Ordinance (Chapter 451) appropriated an aggregate amount of $4,000,000 for the purpose of the Project, including retirement of the notes at the maturity thereof, authorized the issue of an aggregate amount of $4,000,000 bonds or notes in anticipation thereof to meet such appropriations and ordained that the City Council shall determine by resolution the time or times and manner at and in which said bonds or notes shall be issued and sold.  Notwithstanding the foregoing appropriations, the City has never issued more than $2,000,000 in notes for the Project.

            The City previously issued its $2,000,000 General Obligation Bond Anticipation Notes dated May 24, 2007 (the “2007 Notes”), which 2007 Notes were refunded by the City’s $2,000,000 General Obligation Bond Anticipation Notes dated May 28, 2008 (the “2008 Notes”) pursuant to such authority.

            The Director of Finance and the Mayor be and hereby are authorized to issue on behalf of the City, an amount not exceeding $2,000,000 bonds or notes of the City at one time or from time to time for the Project, including retirement of the 2008 Notes at the maturity thereof.

            The estimated maximum cost of the Project, including retirement of the 2008 Notes at the maturity thereof, is $2,000,000 and any unexpended sum from said appropriation shall be used for either the retirement of said bonds or notes issued in anticipation thereof or for the payment of interest thereon.  Prior to issuance of said bonds or notes, in anticipation thereof, funds may be advanced from the City’s general fund for Project costs or to retire the 2008 Notes at the maturity thereof, in which case proceeds of the bonds or notes issued hereunder will be used to reimburse the City for such advance.

            The Director of Finance and the Mayor are also authorized, empowered and directed, on behalf of the City, to: (i) execute, acknowledge and deliver any and all other documents, certificates or instruments necessary to effectuate such borrowing; (ii) amend, modify or supplement the bonds or notes any and all other 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) 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 resolution in order to effectuate said borrowing and the intent hereof.

The Director of Finance together with the Mayor be, and hereby are, authorized to deliver the bonds or notes to the purchasers and said officers be, and hereby are, 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.

This resolution is an affirmative action of the City Council of the City toward the issuance of bonds or notes in accordance with the purposes of the laws of the State.  This resolution 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 resolution but prior to the issuance of the bonds or notes.  Such amounts to be reimbursed shall not exceed $2,000,000 and shall be reimbursed not later than eighteen (18) months after (a) the date on which the expenditure is paid or (b) the date the Project is placed in service or abandoned but in no event later than three (3) years after the date the expenditure is paid.

This resolution shall take effect upon passage.

A motion to dispense with the reading of the resolution is made by Councilwoman Perry, seconded by Councilman DiTraglia and it is unanimous. 

Finance Director McDonald came forward to explain that both resolutions are just renewals the bond and then the next resolution is a RAN revenue anticipation note which has to do with the wastewater department. Taking the BAN first, it was a bond that was authorized 3 years ago in 2006 the City sold the BAN which is a partial funding of that bond 2 years ago for $2 million.  Last year we renewed the BAN and did the same thing this year in order not to take on any further debt because of the financial situation, so we are deferring any new projects that the bond was authorized for.  The same thing is true of the RAN which is a funding of the waste water department from years ago, originally we sold the RAN for $2 million, we’ve reduced it down to the $600,000, I had hoped to eliminate the RAN this year but because we had a couple of major expenses, brakes at the waste water department and it cost us $650,000 for a major repair we’ll need this RAN for one additional year but there’s no additional money other than the nominal interest and we really have to pass this resolution because the alternative would be to pay back the BAN and the RAN and that is money we just don’t have.

Mayor Larisa asked, taking the BAN first, which is called a Bond Anticipation Note, the reason we don’t issue the bond is because it cost a lot of money to issue a bond and a $2 million dollar bond would be too expensive plus we would have to pay principal and interest immediately on that bond right?

Director McDonald stated that it is total of $5 million dollars, an authorization of which we have already spent the first $2 million but we are deferring any further expenditures, the necessity to borrow, until the economy comes into a better position.  Legally we can roll over a BAN for 5 years, at the end of 5 years we will have to either pay it back or issue a bond for the amount we choose at that time.

Mayor Larisa asked if we were in year 3 now.

Director McDonald stated this is the third rollover so we can have two more rollovers if we choose. 

Mayor Larisa stated this means we just pay interest which presumably would be pretty low in this environment on the BAN? And the same thing on the RAN?

Director McDonald stated that is correct. 

Councilman Cusack summarized that the $2 million has already been spent and this does not represent new spending but represents rolling over the funding of the old spending that has been done and we are not spending, though it’s been authorized, another $3 million though we need all of these infrastructure improvements that this money was originally intended for.  But we just don’t feel it’s the proper time right now to go ahead with those projects.  So this is the most cost effective way to continue to support the spending that has already taken place.

Director McDonald stated that was correct.

A motion to pass the resolution is made by Councilman Cusack, seconded by Councilman DiTraglia and on a roll call vote it is unanimous.

2. STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

CITY OF EAST PROVIDENCE

RESOLUTION NO. 14

A RESOLUTION AUTHORIZING THE DIRECTOR OF FINANCE

TO BORROW $600,000 IN ANTICIPATION OF CITY REVENUES

            Pursuant to Section 45-12-4.3 of the Rhode Island General Laws and Section 4-22 of the Charter of the City, the Director of Finance is authorized to borrow during the fiscal year ending October 31, 2009 $600,000 in anticipation of City revenues constituting sewer user charges as may be permitted by law for the purpose of meeting the current liabilities and expenses of the City and that the Director of Finance is authorized to issue the note or notes of the City therefore and to refund such note or notes and any revenue anticipation notes of a prior year to the extent permitted by law.

            The resolution shall take effect upon its passage.

A motion to approve the resolution is made by Councilman DiTraglia, seconded by Councilman Cusack and on a roll call vote it is unanimous.

E.         INTRODUCTION OF ORDINANCES

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

            CITY OF EAST PROVIDENCE

            CHAPTER

            AN ORDINANCE IN AMENDMENT OF CHAPTER 18 OF THE

            REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE,

            RHODE ISLAND, 1998, AS AMENDED, ENTITLED

            “VEHICLES AND TRAFFIC”

            THE COUNCIL OF THE CITY OF EAST PROVIDENCE HEREBY ORDAINS:

SECTION I.  Sec. 18-269 entitled “Stop and yield intersections designated; when stops required.” is amended by adding thereto the following:

VILLA STREET (northbound traffic) at Lincoln Avenue

SECTION II.  This ordinance shall take effect upon second passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.

Requested by:  Director of Public Works

A motion to accept the ordinance is made by Councilwoman Perry, seconded by Councilman Coogan and on a roll call vote it is unanimous.

A request by Antonio Silva for unanimous consent to speak is made.  Consent is given. 

Mr. Silva discussed the property taxes that are spent.  He expressed disgust at the city workers who are given money for membership to the gym.  This varies from union to union and non union. 

The City Manager stated these are in the contracts and they are working with the unions on contracts and are trying to have this item removed. The City Manager does not receive this compensation. The only other person who does not receive this is Solicitor Briden.  There are provisions in most of the collective bargaining agreements for the provision of fitness fees. 

Mr. Silva said this was a shame. 

Mayor Larisa stated this was not a contract approved by this council it is an old contract which the City Manager is negotiating now.

Councilman Cusack stated if you are asking us if we individually support certain provisions in the contract for example health club reimbursements and clothing allowances I think you will find most of us do not support this but we have inherited that contract. 

Mayor Larisa stated we are the only community in the state that caps your taxes at 3.5% this will be the fourth year in a row now. If you want to have the teachers have a 20% co-pay for their insurance we have to fight for it.  If we lose then your taxes will go up another $500 this year. 

Councilman Cusack asked Mr. Silva what would he do different, what would he do immediately.

Mr. Silva said we put you in here to protect the people. 

Councilman Cusack stated if we have contracts with employees and services we have to provide those things cost money. 

Mr. Silva said maybe you have too many employees, reduce the manpower city workers, police and fire. 

Councilman Cusack said other people may disagree.  It’s easy to say you are stealing money from us but we are the only community in the state to cap the tax increase at 3.5%.  To accuse us of not being responsible is itself irresponsible we are doing what we can to prevent the costs from going up even more.  There is difference between the valuation of your house and the tax bill you get.  If all the houses and businesses went down 20% and we held our tax rate to the same as the previous year then your taxes will be the same as the previous year because it still cost money to run the City. We hear what you are saying, a lot of people are in your same position, I can tell you I happen to think that we are over taxed in RI generally.  We are very highly taxed and I agree with you.  What we are trying to do here is to limit the spending as much as we can but we have contracts with employees we can’t just wave a wand and change.  What we are doing with the teachers now is unprecedented and we are taking actions to cut back the spending.  The teachers have had cash taken out of their paychecks and that is a pretty big sacrifice on their part. 

Mr. Silva said he doesn’t even have health insurance. 

Councilman Cusack said the next time that contract comes up we would be in favor of removing that item that you spoke about.

Mayor Larisa stated if you visit any community you would be hard pressed to see a Council and School Committee working so diligently to protect the taxpayer and capping the taxes at 3.5%. 

Mayor Larisa added one item before adjournment stating there was no sweetheart deal to get the Chief to retire. The $41,500 did not go to the Chief.  It was a contribution by the City into the Firemen and Police pension system the City makes several hundred thousand dollars of contributions on behalf of employees into the pension system every year. What the Chief got was $4,100 more in his pension two years early, he was entitled to something around $71,000 if he retired two years from now, what he requested and what the City agreed to was the $71,000 today, he is getting $4,100 two years early. There is no big cost, there is no or very little increase between having the Chief stay on or any other interim Chief stay on vs the State Trooper.  Yes we pay the Trooper for 60-90 days or the Chief for 60-90 days and the next Chief that comes on, inside or outside we pay that Chief’s salary anyway.

F.         ADJOURNMENT

A motion to adjourn is made at 8:40pm by Councilman Cusack, seconded by Councilman DiTraglia and it is unanimous.

Attest:                                                                                                  Approved:  May 19, 2009

__________

Kim A. Casci

City Clerk