I.       CALL TO ORDER

7:30 PM Meeting called to order on October 5, 2010 at Council Chambers, City of East Providence, East Providence, RI.

2.   Motion To:         Motion to return from Executive Session and to keep the minutes of Executive Session sealed.

II.     INVOCATION

III.    SALUTE TO THE FLAG

IV.     TO APPROVE THE CONSENT CALENDAR

All items under CONSENT CALENDAR are considered to be of a routine and noncontroversial nature by the City Council and will be enacted by one motion. There will be no separate discussion on these items unless a Council member so requests, in which event, the item will be removed from the CONSENT CALENDAR and will be considered in its normal sequence on the docket.

A. Vict/Not Over 25 - Transfer

B.  Holiday Sales

C.  Additional Hours

D. Council Journals

1.   Regular Council Meeting September 21, 2010

V.      PROCLAMATIONS & PRESENTATIONS

A. Karen Franks, 105 Elder Avenue (02915) Committee Member of the Sister City Brava Committee presenting a plaque to the City from a recent Sister City trip to Ribeira Grande, San Miguel, Azores.

VI.     LICENSES (Requiring Public Hearing and Not Requiring Public Hearing)

VII.   PUBLIC HEARINGS

A. SHOW CAUSE HEARINGS

B.  AN ORDINANCE APPROPRIATING $140,674,680 FOR

VIII.  NEW BUSINESS

A. CITY MANAGERS REPORT

B.  COUNCIL MEMBERS

1.   Resolution in support of maximum feasible car tax exemption. (by Mayor Larisa)

2.   Motion To:         Motion requesting a resolution be drafted in support of maximum feasible car tax exemption increase if further savings can be realized.

C.  RESOLUTIONS

All resolutions will appear on docket with the name of the resolution's sponsor.

1.   Unanimous consent is granted to allow Pond View and Neighbors to speak regarding this resolution.

D. INTRODUCTION OF ORDINANCES

All ordinances will appear on docket with the name of the ordinance's sponsor.

1.   Motion To:         Motion to dispense with the reading of the ordinance.

2.   Motion To:         An ordinance regarding the Village on the Waterfront Project

COMMENTS - Current Meeting:

ADOPTING THE EAST PROVIDENCE WATERFRONT SPECIAL

DEVELOPMENT DISTRICT PLAN (THE “REDEVELOPMENT PLAN”)

AND THE EAST PROVIDENCE WATERFRONT SPECIAL DEVELOPMENT

DISTRICT TAX INCREMENT FINANCING PLAN (THE “PROJECT PLAN”)

AND AUTHORIZING THE ISSUANCE OF BONDS TO FINANCE CERTAIN

PUBLIC INFRASTRUCTURE AND PUBLIC IMPROVEMENTS NECESSARY

IN CONNECTION WITH THE VILLAGE ON THE WATERFRONT PROJECT

WHEREAS, the City Council of the City of East Providence intends to designate the area within the City described in Exhibit A (the "Redevelopment Area") as a project and redevelopment area pursuant to chapters 31-33 of title 45 of the Rhode Island General Laws, the Redevelopment Act of 1956 (the "Redevelopment Act"); and

WHEREAS, it is the purpose and intent of the City Council to facilitate redevelopment of the Redevelopment Area to accommodate the City’s redevelopment initiatives; and

WHEREAS, the City is considering tax increment financing as a means of financing certain projects as described in the Project Plan; and

WHEREAS, pursuant to the Redevelopment Act and chapter 33.2 of title 45 of the Rhode Island General Laws (the "Tax Increment Financing Act") the City desires to raise funds for the projects by creating a tax increment and providing for issuance of tax increment financing bonds of the City secured by a tax increment pledge ("TIF Debt"); and

WHEREAS, the Tax Increment Financing Act requires as conditions precedent to the creation of a tax increment, that the City Council adopt a redevelopment plan and a project plan, including the designation of a tax increment area and the calculation of the tax increment to be derived from taxes levied on real and personal property situated in or otherwise assignable for purposes of property taxation in the tax increment area; and

WHEREAS, the City Council is required by the Redevelopment Act to make certain findings, determinations and declarations in connection with the adoption of a redevelopment plan and a project plan; and

WHEREAS, Chevron Land and Development Company ("Chevron") is the designated developer of certain land located in the Redevelopment Area and Project Area (defined herein) and Chevron anticipates that it will develop the Village on the Waterfront (the "Village on the Waterfront Project") and incur capital expenditures of approximately $167,000,00 for such development; and

WHEREAS, pursuant to the Tax Increment Financing Act and the Project Plan adopted herein, the City shall designate a portion of the tax increment resulting from the Village on the Waterfront Project for the benefit of certain projects described in the Redevelopment Plan and the Project Plan, including the infrastructure and public improvements contemplated by the Village on the Waterfront Project (the ?TIF Projects?); and

WHEREAS, the City wishes to provide authorization, subject to Section 8 hereof, for the issuance of special obligation bonds and/or bond anticipation notes pursuant to the Tax Increment Financing Act in an aggregate amount not to exceed $17,694,000 to finance and refinance the TIF Projects related to the Village on the Waterfront Project; and

WHEREAS, TIF Debt will be payable solely from "project revenues" as defined in the Tax Increment Financing Act and the Project Plan; and

WHEREAS, project revenues will include tax increments, bond proceeds and betterment fees; and 

WHEREAS, it is intended that the betterment fees will be properly imposed on land and improvements comprising the Village on the Waterfront Project and serve as security for TIF Debt issued for the benefit of the Village on the Waterfront Project, such betterment fees to be paid over the term of any TIF Debt issued for he benefit of the Village on the Waterfront Project at the interest rate on such TIF Debt and for which the tax increment revenues will be a credit to the payment of betterment fees or special assessments; and

WHEREAS, project revenues do not include general funds of the City; and

WHEREAS, the TIF Debt will be a special obligation of the City payable solely from project revenues.

NOW THEREFORE, the City Council of the City of East Providence hereby makes the following findings, determinations and declarations with regard to the East Providence Waterfront Special Development District Plan (the ?Redevelopment Plan?) and the East Providence Waterfront Special Development District Tax Increment Financing Plan (the ?Project Plan?) both of which are incorporated by reference herein as required by Sections 45-32-13 through 45-32-18, Section 45-32-20 and Section 45-33.2-4(1) and (5) of the Rhode Island General Laws:

1.       The Redevelopment Plan and the Project Plan are feasible and conform to the comprehensive plan for the City of East Providence, and if carried out would promote the public health, safety, morals and welfare of the community, and would effectuate the purposes of the Redevelopment Act.

2.       The source of funds for carrying out the Redevelopment Plan shall be proceeds from the sale of TIF Debt issued by the City of East Providence and any other legally available revenues contemplated by the Redevelopment Plan.

3.       The Redevelopment Plan does not directly result in changes to streets except for the extension and construction of a portion of Waterfront Drive and entrance features at Lyon Avenue.

4.       The Redevelopment Plan does not presently provide for acquisition by the City of property by negotiation or by eminent domain.

5.       The Redevelopment Plan contemplates financial aid from the federal government.

6.       The Redevelopment Plan provides for the retention of controls and the establishment of any restrictions or covenants which may run with the real property sold, leased, or otherwise disposed of for private or public use as are necessary to effectuate the purposes of the Redevelopment Act.

7.       The findings of fact regarding “blighted and substandard conditions” set forth in the Redevelopment Plan are hereby accepted.  Based on those findings of fact, the Redevelopment Area designated below is hereby found to be a "blighted and substandard area" as that term is defined in Section 45-31-8 of the Redevelopment Act and requires clearance, replanning, redevelopment, rehabilitation and improvement.  Pursuant to Section 45-33.2-3(2) of the Tax Increment Financing Act, the Projects to be undertaken by the City are not required to be in a Redevelopment Area.

8.       That the Project Area designated below would not by private enterprise alone, and without either governmental subsidy or the exercise of governmental powers, be developed or revitalized in a manner so as to prevent, arrest, or alleviate the spread of blight or decay.

9.       That the Project Plan will afford maximum opportunity to privately financed development or revitalization consistent with the sound needs of the City as a whole.

10.     The facilities and other assistance are needed and that the financing of the project in accordance with the Project Plan is in the public interest.

11.     The City Council intends that the Project Area be redeveloped in accordance with the City’s Redevelopment Plan and Comprehensive Plan and intends that such redevelopment promote the health, safety and welfare of the City.

12.     The Village on the Waterfront Project expects to create approximately 92 permanent and 2000 temporary jobs.  It is expected that wages and benefits from such job will be in line with going market rates resulting in increased personal income tax for the State of Rhode Island

NOW THEREFORE, the City of East Providence ordains as follows:

SECTION 1.  The Redevelopment Plan, incorporated by reference herein, is adopted and approved as a redevelopment plan of the City of East Providence pursuant to chapters 31-33 of title 45 of the Rhode Island General Laws, the Redevelopment Act of 1956.  The Redevelopment Area is described in Exhibit A hereto.

The Redevelopment Area is designated as a Project Area for the purposes of the Tax Increment Financing Act.  The Project shall be identified as "Village on the Waterfront Project Number 2010-1."  The Redevelopment Plan is the official redevelopment plan for the Project Area.

SECTION 2.  There is hereby authorized, subject to Section 8 hereof, the issuance of special obligation bonds and/or bond anticipation notes pursuant to the Tax Increment Financing Act in an aggregate outstanding amount not to exceed    $17,694,000 to finance the TIF Projects contained in the Project Plan relating to the Village on the Waterfront Project (the ?Bonds?).

SECTION 3.  The Bonds shall be issued for the purpose of carrying out any project or projects described in the Project Plan including the TIF Project.  Without limiting the generality of the foregoing the Bonds shall be issued for Project Plan project costs, which may include interest prior to and during the carrying out of any such project and for a reasonable time thereafter, such costs, reimbursements and reserves as may be required by any agreement or arrangement securing the Bonds, and all other expenses with respect thereto, including, without limitation, reimbursement of expenses previously paid from any other source, incidental to planning, carrying out and financing any such project.

SECTION 4.  The Bonds shall be payable solely from "project revenues" including tax increment as defined in the Tax Increment Financing Act and shall not be deemed to be a pledge of the faith and credit or the taxing power of the  City.

SECTION 5.  The City hereby pledges not more than 62.5% of the tax increment resulting from the TIF Area (as defined in the Project Plan) comprising the Village on the Waterfront Project to the repayment of the Bonds.  Notwithstanding anything contained herein to the contrary, the debt service on the Bonds shall not exceed 50% of the estimated tax increment after buildout of a phase of development supporting a series of Bonds.

SECTION 6.  Each of the Bonds shall recite on its face that it is a special obligation bond or bond anticipation note, as the case may be, payable solely from "project revenues" as defined in the Tax Increment Financing Act pledged for its repayment.

SECTION 7.  The Bonds shall be dated and may be made redeemable before maturity with or without premium.  The Bonds may be issued in one or more series and may be initially issued into escrow and released from escrow upon satisfaction of certain development and project revenue generation milestones as determined by the Authorized Officers.  The Authorized Officers defined below shall determine the terms, details and manner of sale and other conditions of the Bonds and the security structure therefor for each issue of Bonds in accordance with the Tax Increment Financing Act and the Project Plan, including the manner in which tax increment received and to be received under the Tax Increment Financing Act and the Project Plan and other "project revenues" under the Act shall be escrowed, pledged or otherwise used to secure any such Bonds issue, and shall also determine the date or dates of the Bonds, their denomination or denominations, the place or places of payment of the principal and interest thereon, which may be at any bank or trust company within or without the state, their interest rate or rates, maturity or maturities, redemption privileges, if any, and the form and other details of the Bonds.

SECTION 8.   The Mayor, the City Manager and the Director of Finance (the ?Authorized Officers?) are authorized to negotiate and determine the terms and provisions of such documents required for the sale and issuance of the Bonds and the documents required to complete the project or projects described in the Project Plan, including a Trust Indenture, Series Indenture, Bond Purchase Agreement and an Escrow Funding Agreement and other necessary documents and certificates and are hereby authorized to execute and deliver such documents, the forms of which will be presented in substantially final form to the City Council for approval.

SECTION 9.   The Authorized Officers are authorized to prepare and deliver an Official Statement or Preliminary Limited Offering Memorandum, if required, in connection with the sale of the Bonds

SECTION 10.  The Bonds shall be signed by the Director of Finance, shall be countersigned by the Mayor, either manually or by facsimile, and shall bear the seal of the City or a facsimile thereof.

SECTION 11.  In case any officer whose signature or a facsimile of whose signature shall appear on any Bonds shall cease to be an officer before the delivery thereof, such signature or facsimile thereof shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until the delivery.

SECTION 12.  The City may sell the Bonds in such manner, either at limited public or private sale, and for such price, as the Authorized Officers may determine will best effect the purposes of this ordinance and the Tax Increment Financing Act.

SECTION 13.  Notwithstanding any provisions of any general or special law to the contrary, Bonds issued under the Tax Increment Financing Act and hereunder may provide for annual or more frequent installments of principal in equal, diminishing, or increasing amounts, with the first installment of principal to be due at any time within five (5) years from the date of the issuance of the bonds and the last installment of principal to be due not later than thirty-five (35) years from the date of the issuance of the Bonds.

SECTION 14.  The Authorized Officers are authorized to execute and deliver a Continuing Disclosure Certificate in connection with the Bonds, in such form as shall be deemed advisable by the Authorized Officers.  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 bond anticipation notes, failure of the City to comply with any Continuing Disclosure Certificate shall not be considered an event of default under such bonds or bond anticipation notes; 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 each Continuing Disclosure Certificate.

SECTION 15.  This ordinance shall take effect upon passage.

Requested By:  The Director of Planning

3.   Motion To:         An ordinance regarding increase in the annual fee of the fixed meter charge portion of sewer charge.

COMMENTS - Current Meeting:

AN ORDINANCE IN AMENDMENT OF CHAPTER 17 OF THE

REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE,

RHODE ISLAND, 1998, AS AMENDED, ENTITLED "UTILITIES."

SECTION I.  Subsection (b) of Sec. 17-183 entitled "Charges to be based upon water consumption; rate" of Chapter 17 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled "Utilities" is amended to read as follows:

          (b)  The fixed meter charge portion of the sewer charge shall be determined as follows:

Such fee shall be prorated quarterly or monthly for users of city water who are billed on a quarterly or monthly basis.

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

Requested by:  Director of Public Works

4.   Motion To:         An ordinance regarding the water consumption portion of sewer charge increase.

COMMENTS - Current Meeting:

AN ORDINANCE IN AMENDMENT OF CHAPTER 17 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED "UTILITIES."

SECTION I.  Subsection (c) of Sec. 17-183 entitled "Charges to be based upon water consumption; rate" of Chapter 17 of the ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled "Utilities"  is amended to read as follows:

(c) Effective November 1, 2009 2010, the water consumption portion of the sewer charge shall be at a rate of $4.46 6.42 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 2011, the rate per hundred cubic feet of water will increase to $5.35 7.78.

Effective November 1, 2011 2012, the rate per hundred cubic feet of water will increase to $5.41 8.09.

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

Requested by:  Director of Public Works

5.   Motion To:         An ordinance regarding water rates increase.

COMMENTS - Current Meeting:

AN ORDINANCE IN AMENDMENT OF CHAPTER 17 OF THE

REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE,

RHODE ISLAND, 1998, AS AMENDED, ENTITLED "UTILITIES."

SECTION I.   Subsection (a) of Sec. 17-36 entitled "Water rates." of Article II entitled "Water" of Chapter 17 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled "Utilities," is amended to read as follows:

(a)  The water rates for water furnished by the city to the consumer and measured by meter shall be billed at $2.85 3.35 per 100 cubic feet for all consumers.

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

Requested by:  Director of Public Works

6.   Motion To:         AN ORDINANCE ORDERING THE ASSESSMENT AND COLLECTION OF

COMMENTS - Current Meeting:

SECTION I.  That the City Council of the City of East Providence hereby orders the assessment and collection of a tax on ratable real estate, tangible personal property and an excise tax on registered motor vehicles and trailers in a sum not more than Ninety-six Million One Hundred Thousand ($96,100,000) Dollars nor less than Ninety-four Million Six Hundred Thousand ($94,600,000) Dollars. Said tax is for ordinary expenses, for the payment of interest and indebtedness, in whole or in part, of said city, and for other purposes authorized by law.

The Tax Assessor shall assess and apportion said tax on the inhabitants and ratable property of said city as of the 31st day of December, 2010 at twelve o'clock Eastern Standard Time, according to law, and shall on completion of said assessment, date and sign same and shall make out and certify to the City Treasurer of the City of East Providence, who is charged with the duties for the collection of taxes, on or before the 15th day of June, 2011 complete list of the names of the persons taxed and of the total value of all the real estate assessed against each person, and also the amount of registered motor vehicles and trailers assessed against each person, and also the total amount assessed against each person on said real estate, personal estate and registered motor vehicles and trailers, opposite the name of the person or persons assessed.  Upon receipt of the certified tax list by the City Treasurer, he shall proceed and collect said tax on the persons and estates liable thereof; said tax shall be due and payable on and between the 1st day of June 2011 and the 1st day of July, 2011 and provided further that if said tangible personal property and real estate taxes are paid in full on or before the 1st day of July, 2011, a discount of three per centum (3%) of the total taxes on said tangible personal property and real estate shall be granted, and all taxes remaining unpaid on the 1st day of July, 2011 shall carry until collected a penalty at the rate of twelve per centum (12%) per annum from the 1st day of June, 2011 upon said unpaid tax, however, said taxes may be paid in four installments; the first installment of twenty-five per centum (25%) on or before the 1st day of July, 2011, the second installment of twenty-five per centum (25%) on or before the 1st day of September, 2011, the third installment of twenty-five per centum (25%) on or before the 1st day of December, 2011 and the fourth installment of twenty-five per centum (25%) on or before the 1st day of March, 2012.

Each installment of taxes if paid on or before the last day of each installment period successively in order shall be free from any charge of interest.

If the first installment or any succeeding installment of taxes is not paid by the last date of the respective unpaid balance period or periods as they occur, then the whole tax or remaining unpaid balance of the taxes as the case may be shall immediately become due and payable and carry until collected a penalty at the rate of twelve per centum, (12%) per annum.

The City Treasurer shall, by advertisement in the public newspaper having circulation in the City of East Providence, notify all persons assessed to pay their respective taxes at his office on and between the said 1st day of June, and the 1st day of July, 2011 both days inclusive; said City Treasurer setting forth the hours during which his office shall remain open to receive said taxes.

SECTION II.  That any of said taxes not paid on or before the 1st day of March, 2012 shall forthwith be collected by levy upon the sale of real estate upon which it is assessed and by that or other due process of law in case of assessment upon personal property.

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

Requested By:  Director of Finance

7.   Motion To:         AN ORDINANCE AUTHORIZING THE DIRECTOR OF

COMMENTS - Current Meeting:

SECTION I.  The Director of Finance is authorized to borrow during the fiscal year ending October 31, 2011 such sums of money in anticipation of the sewer use fee revenue of the year 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.

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

Requested by:  Director of Finance

8.   Motion To:         AN ORDINANCE AUTHORIZING THE DIRECTOR OF

COMMENTS - Current Meeting:

SECTION I.  The Director of Finance is authorized to borrow during the fiscal year ending October 31, 2011 such sums of money in anticipation of the property taxes of the year 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 tax anticipation notes of a prior year to the extent permitted by law.

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

Requested by:  Director of Finance

E.  COMMUNICATIONS

Any person who submits a communication to the Council and wishes to speak on it must indicate this in writing by completing a "Docket Request Form"

IX.     ADJOURNMENT

1.   Motion To:         Motion to Adjourn at 12:45 A.M.

Approved By Council:  October 19, 2010

Attest:  _______________

                   City Clerk