I.          THE CONSENT CALENDAR

A.    Approval of Council Journals

1.      August 11, 2009

B.     Letters

1.      Coastal Resources Management Council September Calendar.

2.      Notice of new property number, 91 Fairview Avenue. 

3.      Notice of new property number, 60 Crown Avenue.

C.    Cancellation/Abatements

D.    Alcoholic Beverage Class F-1

1.      St. Francis Xavier, Holy Ghost Fundraiser, 81 Carpenter Street (02914)

    September 19, 2009

E.     Alcoholic Beverage Class F-1

1.      St. Francis Xavier, Music Festival Fundraiser, 81 North Carpenter Street (02914)

F.     Wrecker/Tower

1. John DeSilveira III, DBA Veterans Towing, 5 Eastern Avenue (02914)

Councilwoman Perry requests the Wrecker/Tower License be moved from the Consent Calendar and placed on the regular docket.

A motion is made to approve the consent calendar without the Wrecker/Tower license by Councilwoman Perry, seconded by Councilman Cusack and on a roll call vote it is unanimous.

Mr. DeSilveira was not present.  A motion is made move this item to the next meeting and instruct Mr. DeSilveira to appear before Council at the October 6, 2009 Council meeting by Councilwoman Perry, seconded by Councilman DiTraglia and it is unanimous. 

II.        APPOINTMENTS

A. Carousel Park Commission – Alternate to Permanent replaces Chris Russo

By Councilwoman Perry

Luci Stoddard, 5 Carolina Avenue (02915)

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

The City Clerk is instructed to send a thank you letter to Chris Russo for his service. 

B. Carousel Park Commission – Alternate replaces Luci Stoddard

By Councilman DiTraglia

Marie Camille, 99 Wampanoag Trail, Apartment 1 (02915)

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

C. Harbor Management Commission – Reappointment By Councilman DiTraglia  

Michael Tracy, 2 Claire Street (02915)

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

D. Harbor Management Commission – Reappointment By Councilman DiTraglia

Steven M. Sheridan, 23 Carousel Drive (02915)

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

E. Harbor Management Commission – Reappointment By Councilman DiTraglia

George Parker, 35 Floyd Avenue (02915)                                                                                              

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

III.       PUBLIC HEARINGS- ORDINANCES FINAL PASSAGE

IV.       NEW BUSINESS

A. City Managers Report (By Director of Finance Jim McDonald)

1. “Distribution of Proposed City Manager’s budget.” 

The City Manager’s proposed budget, as delivered in the proposed budget books are handed out to the City Council members. 

Director McDonald stated the primary item tonight is to schedule the first public hearing for the budget for the next Council meeting this will leave adequate time for the advertising and the 10 day waiting period as described by State law.  This budget was prepared with a 3.5% tax increase.  The taxes will raise about $3.3 million, revenue from other sources primarily the State is down $3.5 million this has never happened before.  Last year the revenue sharing was $2.5 million and it is now 0.  Funds directed to Cities and Towns from slots was $300,000 that is now at 0.  The motor vehicle reimbursement from the State, this cut was not included in this budget as it was prepared beforehand and it is not law yet.  Prior to that funds had been reduced from 100% to 98% reimbursement costing the City about $200,000.  This total’s a loss of $3 million from the State.  All permits are down totaling about $200-300 thousand dollars.  Interest rates for short term money is down less than 1% the City used to bring in several hundred thousand and may not even bring in $100 thousand this year.  A negative $200,000 to operate the general fund and the school department is what the City is left with.  The total new revenue for the City is negative $200 thousand dollars.  The budget must be passed by October 24^th seven days before the end of the fiscal year.  If the Council does not have changes then the budget as proposed by the City Manager passes as law as of October 24^th. 

A motion is made to schedule the first Budget Hearing for the October 6, 2009 Council meeting by Councilman DiTraglia, seconded by Councilwoman Perry and it is unanimous. 

G.    Council Members

1. Response to 2^nd Auditor General Letter (by Mayor Larisa)

The Auditor General rejected the City’s plan.  There is no other money to pay the deficit down without raising taxes beyond the 3.5% which the Council is not willing to do.  The Auditor General is upset the City doesn’t have a plan in case the City loses in court to the teacher’s union.  The plan is to enter into receivership whether he likes the idea or not.  The political courage he states in his letter is a tax increase like they did in North Providence.  That’s the easy thing to do just raise taxes the hard thing is to go into receivership and have the receiver rip up the contracts and start over with something the City can afford.  The City Council is not going to raise taxes beyond the 3.5% no matter what the Auditor General says, the General Assembly members from the City and other government officials cut all the aid to Cities and Towns.  The School Department is balancing their budget now.  If the State would leave the City alone and stop taking away City money we can survive this.  The Auditor General’s letter is the same old, same old, get in there and collect more in taxes from your residents.  This is not the right thing to do, to pay for pay increases and no health care co pays and buybacks on the backs of tax payers who are unemployed or paying 40% or more for their health insurance and some don’t have health insurance at all.  It’s not the right thing to do and we’re not going to do it. The Auditor General can haul the City into court and demand we pay but the City will be in the other court filing for receivership because we will not raise the taxes that high to cover these unaffordable contracts.  They can take away the City’s general revenue funds but they have already done that so what’s left to take away? Receivership means that the City does not have the final word over cuts, the contracts would be ripped up, they can change any term they want, it doesn’t look good to the credit market, it doesn’t look good to the State which is why the Auditor General doesn’t want it.  There are no good options when you have no money.  The Council does not decide to go into receivership lightly but we can’t take money from tax payers who can’t afford it. 

Councilwoman Perry asked is it worse to go into receivership or is it worse to pay high taxes?

Councilman Cusack explained for the tax payer receivership does not change the day to day workings of the City.  The trash still gets picked up everything still takes place.  The receiver has the power to negotiate contracts and raise taxes.  The bonded indebtedness would be current, they would get paid.  Services are maintained and the burden on the tax payer would rise but the amount we are paying to employees would go down.  Once receivership was done with a balanced budget with a cushion our rating would go up not down.  It is a giant reset button.  The people of North Providence aren’t getting anything better, no better services or education they are just paying 17% more.  The elderly don’t have mortgages by and large, they don’t have much income, we are a City of moderate income, when you raise the tax rate by $500 each and every year and then each year it raises more and more, this can tip people and force them out of their homes.  Where is the watchdog on the State level all these years as they have continually increased their spending? In RI we have about 1 million people in MA they have about 7 million people, in RI our budget is $7 billion dollars, if MA is 7 times the size of RI then their budget should be 7 times the budget but it’s only $24 billion, this tells you there has been run-away spending for a long time in RI . The Auditor General is appointed by the Speaker and we haven’t heard anything from the Auditor General on the State’s over spending only our responsibility to raise taxes.  The writing of this letter is a political statement to keep things status quo.  East Providence isn’t doing things the usual way. This letter is a prescription for going down the same road the State is going.  We are elected by the people of this City.  Employees of the City, receive 20 times more then they expend, that is why they don’t oppose the tax increases.  The City Council doesn’t want to lay people off it effects families and creates hardship in an already difficult time. However, we are going to run the City in a responsible manner. 

Councilman DiTraglia agreed and asked if the State of Rhode Island received a letter like this?  We are looking out for the tax payers in the City of East Providence.  The Auditor General has never sat down with any City official about any of this. The state just keeps taking from the Cities and Towns dn’t they realize what they are doing to the Cities and Towns of this State?  The Auditor General should be fired for sending a letter like this, it’s an embarrassment.  I don’t even want to raise the taxes the 3.5% certainly not 17%. 

Councilman Coogan added that he agrees with the Mayor and doesn’t even want to raise the taxes 3.5% and feels there are places the City can cut to save additional money. 

Mayor Larisa added the State takes away the money and at the same time demands we raise taxes.  Anything we try to pass to save money where they have taken money away doesn’t even make it for a vote at the General Assembly and our own delegation does nothing to help their own City. 

2. Initial thoughts on 2009-2010 City Budget (by Mayor Larisa)

The Council agreed that they needed further information and a full discussion on the budget books which were just presented to them.  There appears to be too many cuts on the City side there are some cuts that need to be made but some seem excessive. 

4.      North Broadway roadway and bridges.  (by Councilman Cusack)

This main thoroughfare has been deteriorating over the years.  The road has needed repair for a long time.  Over a period of time public works has looked at it.  Months ago the bridge was posted and then one day the State put in jersey barriers, it’s a venturi effect.  It is very dangerous.  At our request, Mayor Larisa, City Manager Brown, myself, DOT Director Lewis and his top engineers met and it was a very productive meeting.  They explained the plan and why it was posted and we asked them to accelerate it.  We found out there are two bridges and DOT thinsk they can get it into next year’s budget. There will be a design in the Fall and the bid will be awarded in March with construction to start in the Spring.  They are also looking at reconfiguring the Centre Street Intersection.  All of this hardship that people are dealing with is temporary and we are working on it with Director Steve Coutu.  We would like to do as much of the roadway as possible all the way up to the Fire Station on Greenwood Avenue if we can.

5.      Preservation Grants and Awards. (by Councilman Cusack)

I have had the pleasure for the last eight years to serve on the Rhode Island Historic and Preservation Commission from time to time we have State money to allocate and this year there was  $200,000 in federal grants to distribute.  A panel of experts was convened to evaluate the applications and there were 57 applications coming from 32 communities around the State and it’s a highly competitive process.  The applications totaled over $700,000 a total of 16 grants were awarded.  One of the grants happens to be in the City of East Providence.  Out of a requested $18,000 we voted to allocate $15,000 for a full survey of the Phillipsdale section of East Providence which is a highly historic area.  There is going to be the possibility of another historic district in that area.  I would like to thank the Department of Planning for preparing a grant that was awarded in a highly competitive process.  In joining with Preserve Rhode Island  awards are being given out and this year for two projects in East Providence.  One is the Star Diner at 140 Newport Avenue and the other is the Rumford Chemical Works Rehabilitation as Rumford Center. 

6. Adoption of East Providence Guidelines for Liquor Violations Alcohol License Holders.  (by Councilwoman Perry)

We have been hearing a lot lately of the problems and fatal accidents from underage drinking.  The East Providence Prevention Coalition is working to stop this, we have been meeting, myself, the City Solicitor, the City Clerk, Sgt Andrews and members of the East Providence Prevention Coalition and have come up with some guidelines to address the liquor license holders when there are problems with underage drinking at their establishments.  The State does mandate training for servers but some people refuse to do this and we need to get guidelines on record.  There are a couple of changes to what is posted on the docket and I would like to call members of the East Providence Coalition come up to discuss these. 

East Providence Coalition members came up to explain the guidelines which are for the license holders, there are sanctions for the server, but currently none for the establishment.  These are just guidelines but will assist the Council in addressing the situation.  There was a suggestion to change the first offense of no minor from a written warning to up to a $250 fine with a show cause hearing.  There was a suggestion to add an expiration date of 3 years to the offenses so that 3 years after the first offense if the establishment has no further offenses then it would revert back to no offenses.  These guidelines are adopted from the Providence Liquor Board and derived from the Department of Business Regulations.  The City of Providence is looking at instituting a fine for the first offense.  EPPC does compliant checks with the police department to see if minors are being served, there have been 6 violators, half have been fined and the other half have not yet appeared. EPPC is offering training for every resident and anyone who is working in East Providence these are free training classes.  These notices will be mailed out to establishments.  The training is required by law and must be completed every 3 years. They noted they are not looking to penalize but to help establishments reach compliance to prevent these from happening. 

Mayor Larisa added that this would be going forward, those businesses that have violated already cannot now be made to adhere to the guidelines as we are passing them after the fact, going forward they will.  In the future the server should have had a hearing in Municipal Court before the owner of the establishment comes before Council.

Councilman Coogan wanted to know if a bench warrant would be issued for those who do not show up for court and Solicitor Briden stated if someone doesn’t appear in Municipal Court on a criminal matter such as this a bench warrant can be issued. 

EPPC explained that the server has to ask for an ID and the decoy has to say I don’t have an ID if they ask their age the decoy cannot lie and must state their age of 16 years old and there have been 16 year olds that were served in this City, so the server either served knowing the person was not 21 years of age or did not ask at all. 

East Providence Guidelines for Liquor Violations
Alcohol License holders

1^st Offense  Underage Drinking (no minor) Written Warning

1^st Offense  Underage Drinking (minor 17 and under) Show cause hearing: up to $500 per count

2^nd Offense  Underage Drinking (no minor) Show cause hearing: up to $250 per count

2^nd Offense  Underage Drinking (minor 17 and under) Show cause hearing: up to $1,000 per count and up to a 3 day closure

3^rd Offense  Underage Drinking (no minor) Show cause hearing:  up to $500 per count and a 5 day closure

3^rd Offense  Underage Drinking (minor 17 and under) Show cause hearing: 10 day closure or revocation

4^th Offense  Underage Drinking Up to $1,000 per count and/or 14 day closure or revocation

The Board of Licenses hereby adopts the guidelines referenced above.  In the event the Board departs said guidelines because of the presence of mitigating or aggravating circumstances, the Board shall state the reason for such departure on the record.

A motion is made to accept the guidelines with amendment 1. The first offense is amended to written warning and add show cause hearing; up to $250 and 2. If you have no other violations after your first offense for 3 years you will revert to first offense by Councilwoman Perry, seconded by Councilman Coogan and on a roll call vote it is unanimous.

6.      Just Bead It.  (by Councilwoman Perry)