I.       Executive Session

The City Council of the City of East Providence will meet in Executive Session pursuant to RI General Laws § 42-46-5 (a) (2)

II.     Regular Meeting

III.    Call to Order

IV.     Invocation

V.      Salute to the Flag

VI.     Consolidation Options

Both Mayor Rogers and School Committee Chair Tsonos gave opening remarks regarding facing the deficit and meeting the challenge head on.

A. Human Resources and Payroll

Both Mary Scanlon Director of Human Resources for the City and Patti Walen Human Resource Manager for the School Department spoke and gave a brief summary of what they do on their respective sides.  Mary Scanlon reminded everyone that on both sides they have to operate with the collective bargaining agreements. City Standards and in the case of teachers State standards need to be met. On the City-side 3 HR staff service 600 employees and on the School-side 3 HR service about 800 employees. Mary King Director of Finance for the School side spoke regarding payroll. Possible new computer technology was discussed to streamline payroll further. Chairman Tsonos brought up the idea of a performance audit. Discussion ensued regarding if a merge of the two departments could take place. Both departments stated that they need more resources and staff not less. Everyone agreed that both sides be asked to work on the possibility of consolidations and work with the City Manager and Superintendent on if this would be an option and how it would work and to have that reported back to Council. 

1.   Discussion of Differences in Qualifications & Certifications of Personnel

2.   Potential of One Location & Cross Training of Personnel

3.   Reevaluation of the number of employees

These three items were covered in the discussion referenced above.

B.  Health, Life & Dental Insurances

There was discussion regarding the cost of plans being the same for one family as another regardless of the number in the family.  Health care will be going up 14% roughly estimated cost around $375,000 for the City. Mary Scanlon stated all three are within RI Interlocal the City is part of a collaborative with 19 other communities.  If looking to change the City has to give a 90 day notice or else become committed to another full year.  If the City has a good year/low claims then they have a lower rate and vice versa. 

The City Manager stated that he asked Mary Scanlon to look into the health care which the State has which is United Health.

Mary Scanlon stated that there are 29 plans within the one plan so it is a big undertaking. 

Councilman Conley stated that Mary was right in that the City always goes after the co-share instead of where the big money might be which would be the plan design.

The Mayor asked if these increases from the health care companies have ever been challenged in a collective action from the cities and towns and maybe the Attorney General. 

Assistant Solicitor Craven stated it would be worth contacting Dan Beardsley of the League of Cities and Towns and he would be able to be very informative on this topic. 

The City Manager and the Superintendent were asked to oversee the bid process for life insurance as a cost saving measure. 

With unanimous consent Councilman Conley stated there was another area of insurance on both sides and which is public official and liability insurance which the City has through the trust, as part of a risk pool.  Adding one of the things happening now is that private insurers are starting to get back into the business of providing insurance to municipalities and school districts.  The court has repeatedly said, for purposes of liability, there is no difference between the municipality and the school department.  The City has been continuing to insure these separately and is paying two distinct premiums and should explore other opportunities for insurance.

Councilwoman Kleyla asked if there has been any response to if the City is eligible for the federal funds for the retirement reimbursement, that she had requested this information about two months ago. 

The Mayor asked for a response to this yesterday please.

Patti Whalen stated the schools did save money this year by going with a collaborative on the dental coverage. 

1.   Consolidation without violating contracts

2.   Investigate opportunities to RFP bids to find one company for all

These two items were covered in the discussion referenced above.

C.  Purchasing of Supplies and Servicing

Paul Airozo the City's Purchasing Agent and Mary King the Finance Director for the School Department discussed this topic.  Paul went through the process of a bid on the City-side, how gasoline is bought and how basic supplies are purchased. Mary King spoke from the School-side agreeing with Paul that the amount of money saved on items they share in common, such as stationary, may be small but that they would look into this. Both Paul and Mary continued that they will look at ways they can join together on certain purchases but there are many purchases that are just vastly different due to the nature of the business conducted on each side.  They were asked to work together to see where merging could take place, including a master list of needs and to work with the City Manager and the Superintendent to bring this information back to the Council. 

1.   Discussion of the Bidding Process

2.   Create Master List of needs for the City

These two items were covered in the discussion referenced above.

3.   A five minute recess is called.

D. Discussion of New/Co-Location of City and School Adm.

The City Manager stated that he was concerned about a 6 million dollar grant to remodel the Fire Department.  He added that this got him thinking instead of remodeling creating a municipal complex.  Stating that it would be nice to put everyone in one complex and move all the people together and that it was his plan to move the Fire Department permitting into City Hall to work with the other permitting departments. 

Chairman Tsonos stated that this item ties into item number 6 and the Mayor agreed and stated we would defer further discussion until that item on the docket. 

Freddie Ryptka, 9 Cozzins Avenue requested to be allowed to ask a question regarding the medical packages on the City and School.

Mary Scanlon forward to answer this question stating she became aware last Friday of the renewal and is bringing it here this evening and that they only have 10 days to make a decision and will look at all possible alternatives within that time frame. 

E.  IT Consolidation and Efficiency – Use of Equipment &Personnel

Lori Fox, IT Director for the City and Kelly Aherns, IT Director for the School both testified and discussed their offices and the work they do.  Lori gave a background on IT for the City, job duties and answered questions regarding the fact that she serviced both the City and the School-side when she first was hired, however there was no IT staff on the school side at that time and there were only two people on the City-side herself and one staff person. The computers for the City are not hooked up to a generator and most computers are 5 years old. Vendors give different prices, one for City and one for Schools, shared internet and telecommunications need to be separate because of the e-rate funding based on the free and reduced lunch numbers so they cannot be co-mingled.  Sharing staff could be done like other communities such as Brookline, MA and Woodbridge, NJ. This shared service contract was passed out to the Council and the School Committee by Lori.  Kelly spoke stating that there is similar equipment and the ability to share PC technicians both Lori and she would need to sit down and take a look at both departments.  She added the Schools did not have much when she first arrived but it has been increased greatly since then and they have experienced an explosion of technology in the School Department. Both were asked to work together to find a way to consolidate these services by working with the City Manager and the Superintendent and have that reported back to Council. 

Paul Airozo came to the podium to address questions regarding surplus equipment to be sold on PropertyRoom.com.  Copy machines for both sides are different where Core is used for the Schools and Ikon is used for the City both are off the State MPA.  By going to these multi function machines and eliminating the desk top printers the City can save thousands of dollars a month.

Tom Riley, 3620 Pawtucket Avenue (02915) came forward to ask a question, if the cost of the backup generator is around $250,000-$300,000 has anyone considered the American Power Conversion units to support critical units in the event of a power outage?  Lori Fox addressed the question and stated the City does have some in the building which will keep up a server for about 45 minutes to an hour depending on the load, they also prevent spikes.  The City does have a very large APC unit at Fire Station 3 although she doesn’t have a price on that they tend to be quite expensive as well.

The City Manager stated he would look into why they couldn't state that this was a public safety issue and the computer system should have a backup generator and that he would look into this and get back to the Council. 

Mary King spoke and said they would certainly look into what services and equipment they could share. 

VII.   Public Hearings

A. Maintenance - One Department - One Facilities Mgr.

Ed Catelli, Superintendent of Public Buildings for the City came up to testify. The City Manager asked Ed to explain the resources on each side and to put a package together to merge the two departments. 

Ed stated that on the City-side about $125,000 is spent for HVAC, plumbing and electrical work that has to be jobbed out and on the School-side they have a number of employees with these specialties so that these items would not have to be outsourced.  There is one union on each side.  Ed stated a merger of these departments would be feasible to look at. 

Joe Tavares, Facilities Manager for the Schools was called to testify.  Joe is retiring in June of this year.  He provided a quick overview of maintenance at the School Department. 

The Mayor asked Ed if he could discuss collective bargaining but the City Manager asked them not to as they were still in negotiations. 

The Mayor stated with the merger of these departments there would be no lay off necessary because Joe is retiring and the City can really save tax dollars consolidating especially with the sharing of staff and specialty employees. 

1.   Collective bargaining issues

B.  Discussion of Finance Department - Administration and Control

The City Manager stated that with the departure of Don Gray, they have advertised for a Finance Director and are beginning to interview for the Finance Director position.  Retired Finance Director Jim McDonald is helping in the meantime along with the Treasurer Kevin Fitzgerald. 

The Mayor called up Mr. Fitzgerald to testify and Kevin stated the City Manager has not asked him to look into consolidating the City and School Finance Departments.  When asked about this he stated he didn't see consolidation as feasible. 

The Mayor called Mary Scanlon up to testify and she stated that the process for applicants for the position of Director of Finance has closed and that she is in the process of setting up a panel to conduct interviews for a Finance Director and if all goes well, the City should have a new finance director in about 6 weeks. 

A breakdown of the job duties in the various the divisions of the Finance Department were given by Mr. Fitzgerald. 

The Mayor asked why there was a computer information specialist in the Finance Department and not in the IT Department.  Mr. Fitzgerald stated that person was retired and had previously reported to him.  Currently Mr. Fitzgerald stated he is backed up by Lori Fox. 

Lori Fox came up and explained the situation and the 20 year old computer program to which she recommended utilizing the retired position dollars to purchase a new system. The previous position is valued about $93,000 and IT would absorb that position.  The retired person is now being paid $5,000 per month via the vendor she now works for because there was no backup for that position.

C.  Janitorial Advantages and Disadvantages of Consolidation

This was answered under item A.

D. Transportation

Chairman Tsonos stated he didn't see any commonality with this item.  Ray Linman, Director of Transportation was called up to testify.  He stated in looking toward the future he is negotiating with the current contractor to accept a little bit less.  Discussions took place regarding the RFP for the bus company and other companies that are available. 

1.    Singular Purpose

This item was covered in the discussion referenced above.

VIII.  Sale of School /City Buildings

The City Manager was asked about the status of the Grove Avenue School.  He stated the money goes to the City not the Schools as the deed is in the name of the City.  

Discussion ensued regarding where the funds from the sale of the building should go. 

The Mayor asked the City Manager to sit down with the Superintendent and discuss the funds and where they should go and then report back to the Council and that this item will be on the next docket for a vote.

Councilman Conley asked if it was correct that this was an agreement with the prior City Council and that this was presented to the Auditor General and the response from the School Finance Director was yes.  Mary King added that it was reallocated on more than one occasion as the sale didn't take place in the year it was supposed to.

Various vacant buildings were discussed with options regarding if they could be sold and how marketable they were, the buildings discussed were Waters School, Union Primary, Odd Fellows Hall, Weaver House and Vamco and adjacent homes Jeanne Boyle was called up to answer questions and weigh in on the status of the buildings.

IX.     TANS/Deficit Reduction

The City Manager stated there might be a surplus on the City side.  Meetings have been taking place with Superintendent Cirillo, former Finance Director Jim McDonald and Bond Counsel regarding deficit reduction with a plan to be submitted to the Auditor General.

The City Manager stated that there has not been a decision on TANS due to the fact that at the end the City does not have a way to pay. 

The Superintendent stated the meeting with bond counsel was enlightening and that the conversation needs to be continued and TANS are not totally off the table.  Adding the plan with the Auditor General has been going on for four years and was last rejected because it wasn't front loaded. 

Mary King the School's Finance Director stated because the City side has a surplus they wouldn't be able to borrow for TANS.

Councilman Conley stated traditionally the City needs TANS in anticipation of the tax money which is coming in because of the date end of our fiscal year but the equivalent of that money is coming in.  Whereas TANS issued to pay money that we already owe makes no sense whatsoever for deficit reduction purposes.  This is a credit card, adding debt to debt. 

The Mayor stated that we are going to have to find ways to cut and asked the various Department Heads to look for ways to cut or else the two elected bodies would have to do this.

X.      Adjournment

1.   Motion To:         A Motion to adjourn at 11:04PM included a moment of silence in remembrance Jon Carmichael the Martin Middle School student who committed suicide.

Approved By Council:  November 15, 2011

Attest:  _______________

                 City Clerk