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| CITY OF EAST PROVIDENCE RHODE ISLAND JOURNAL OF REGULAR COUNCIL MEETING Tuesday, October 25, 2011 6:45pm Executive Session 6:00 PM Public Hearing |
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I. Call to Order
| Attendee Name | Title | Status | Arrived |
| William Conley Jr | Councilman | Present | |
| Michael DiGioia | Councilman | Present | |
| Katie Kleyla | Councilwoman | Present | |
| Thomas Rose Jr. | Assistant Mayor | Present | |
| Bruce Rogers | Mayor | Present | |
II. Salute to the Flag
III. Public Hearings
An Ordinance Appropriating $147,712,708 For The Support of the City Government For The Fiscal Year Ending October 31, 2012
THE COUNCIL OF THE CITY OF EAST PROVIDENCE HEREBY ORDAINS:
SECTION I. The receipts for the fiscal year ending October 31, 2012 have been established to amount to $147,712,708 made up as follows:
| RECEIPTS | |
| Beginning Balance | $3,500,000 |
| General Property Tax | $90,815,902 |
| Interest on Investments | $5,570 |
| Licenses and Permits | $1,216,096 |
| Rescue Fee Transfer | $979,130 |
| Smoke Detector Fund Transfer | $100,000 |
| Vehicle Detail Fee Transfer | $100,000 |
| Recycling Transfer | $95,000 |
| Fines, Forfeits, Penalties | $30,000 |
| Revenue from Other Agencies | $1,636,881 |
| Charges for Current Services | $948,017 |
| Revenue from City Agencies | $90,000 |
| Revenue transfer to school - dedicated to deficit reduction | $1,445,058 |
| Revenue Water Department | $8,318,418 |
| Revenue Wastewater Department | |
| Sewer Use Charge | $9,067,616 |
| Other Revenue | $2,100,000 |
| Revenue School Department | |
| Federal Sources | $1,700,000 |
| Other Revenue | $472,000 |
| State Sources | $25,093,020 |
| TOTAL RECEIPTS | $147,712,708 |
SECTION II. To defray the expenses of the City of East Providence for the fiscal year commencing November 1, 2011 and ending October 31, 2012, the sum of money, or so much thereof as are authorized by law indicated in the accompanying schedule, are hereby appropriated for the objects and purposes, and in the amounts expressed therein, provided that payments thereunder shall be subject to the provisions of the City Charter of the City of East Providence and also subject to the provisions of said City Charter relative to the manner and form of expenditures of money set forth in said Charter from the City Treasury.
SECTION III. All monies appropriated are to be expended by the various departments in the manner and form approved by the Director of Finance.
SECTION IV. The payment to the School Fund of the following estimated receipts, included in the appropriation of $75,035,178 for the support of the public schools for the City of East Providence fiscal year 2011-2012, shall be increased or decreased to conform with the actual amounts received from such sources during the fiscal year 2011-2012 except the City appropriation of property tax.
| REVENUE-SCHOOL DEPARTMENT | |
| Federal Sources | $1,700,000 |
| State Sources | $25,093,020 |
| City Appropriation of Property Tax | $46,325,100 |
| Other Revenue | $472,000 |
| Revenue transfer to school - dedicated to deficit reduction | $1,445,058 |
| TOTAL | $75,035,178 |
SECTION V. The purpose of this ordinance is to adopt the Budget for the fiscal year 2011-2012 which begins November 1, 2011 and ends October 31, 2012 as prepared and submitted by the City Manager, and to implement the recommendations as set forth in the City Manager's Budget Message by the approval of said recommendations as contained herein, or by other ordinances or resolutions of the City Council; all in accordance with the provisions of said Article.
SECTION VI. This ordinance shall take effect upon its passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.
Requested by: Finance Director
The City Manager speaks and gives opening remarks on how the deficit came about and on savings achieved so far. Comments include doing business differently.
Ellen Eggeman, Director of Finance makes the following adjustment to the budget:
In the Revenue-School Department section under City Appropriation the new number is a decreased to $47,800,511.00.
The new Total is now $75,718,589.00.
Testifying on the Budget:
1. Tom Grabley, 214 Riverside Drive
Discussion ensues regarding the deficit in the budget which the School Department left in. The City Manager states at the end of the night we will be left with a deficit on the School side of the budget and the Council will have to send it back to the School Committee to go back to the drawing board and find the cuts because the funds don't exist.
Councilman Conley stated the email the Council received, 2 pages, looked like a summary sheet, it contained no detail and was not a budget but a summary showing additional funding $7.2 million needed from the City. There is no way to analyze detail when no detail exists to help us make any decisions. This appears to be all the School Department gave the School Committee.
The City Manager stated the School has cut $1.25 that is proposed to be cut out in addition to the previous cuts. On the city side the additional cuts are $440,000 retiree changes added to the $746,000 healthcare changes plus the consolidation of the Municipal Court.
Discussion ensues regarding the unwillingness of the Council to request a waiver from the State to raise taxes.
Mayor Rogers stated that the City Council has to take some action tonight to either to eliminate the School deficit, raise taxes or send it back to the School Committee to rework the numbers because we can't afford it.
Councilman DiGioia asks if anyone from the School Committee or School Department is present.
Chairman Tsonos is present.
2. Anthony Ferreira, 44 Brightridge Avenue
2. Tom Riley, 3620 Pawtucket Avenue
Charlie Tsonos, Chairman School Committee, was called to the podium.
The Chairman stated that unfortunately when we took office under each rock that we look we found debt that this City owed. It was incredible what we found since December. We have asked for a deficit elimination plan since December. We received zero from the School Administration. We are still struggling with the prior debt. I wish this enthusiasm took place last year. We don't create these numbers. We have terminated employees, we have restructured, we have looked for places to cut and we have done a lot to try to cut this budget. We continue to do so. We are in the midst of negotiations with our school teachers.
4. Wesley Plante, 193 Waterman Avenue
5. Tony Gouviea, Bullocks Point Avenue
Mayor Rogers reads into the record an article regarding the City of Cranston and the Caroulo Action.
6. Jack Fahey, 2535 Pawtucket Avenue
Councilman Conley asks the Finance Director for informational purposes regarding setting the School Department up to fail. RI Department of Education does a lot of data initiative through RIDE and in that group they identify two items, district property tax capacity and what the district tax effort is. Director Eggeman explained what these were. The ability to pay and what do we actually contribute. Councilman Conley stated according to this analysis we spend $14,851 per student. Per thousand our capacity is $69 our tax effort is $126. This is double.
Chairman Tsonos stated the largest part of that capacity goes to special education. This is another perspective on those numbers.
7. Peter Spicola, 99 Burnside Avenue
8. Tom Riley
9. Elizabeth Sceppard, 212 Centre Street
10. Freddie Rybka, 90 Cozzens Avenue
The School Department Attorney came forward to speak regarding the question about reduction in force for special education. Thursday night there is a meeting.
Director Eggeman discussed the earlier question asked by Councilman Conley regarding the sewer use fee. First passage October 5th 2010 stated that the sewer rate would be set and in 2011 it increases $1.36 and this is expected to generate $1.6 million.
Councilman Conley stated that he has been requesting since last December to re-evaluate our agreement with the United Water contract. A restructuring could have a potential savings of over a million dollars.
A five minute recess is called.
10. Eileen Socha, Director of Library Services
Director Socha informed the Council that the Library Board of Trustees met and the recommendation was that the $150,000 was indeed too large of a cut and instead we are requesting a revised cut to $84,000 this would eliminate a gamble we were taking with applying for a waiver for grant and aid. One employee is retiring and we would cut out any overtime and reduce the part time salaries. All branches will remain open.
Discussion ensued on how to adjust the change in the library cut, where a $66,000 cut elsewhere has to take place.
Opposed to the full library cuts:
11. Mary Therese Martinez, 130 Miller Avenue
12. Tom Riley
12. Peter Eshwick, 133 Terrace Avenue
13. Tom West, 149 Terrace Avenue
14. Christopher LaRougue, 2 Spinnaker Drive
15. Ellen Goodman, 117 Warren Avenue
16. Lisa Perry, 99 Burnside Avenue
17. Peter Eshwick
Councilman DiGioia wants to know who is receiving raises as part of the consolidation plans.
The City Manager took each consolidation one at a time beginning with Facilities Management of the City and School. The School's manager retired and the City's manager has been in place in the consolidation as Superintendent of Public Buildings since June. The savings are the elimination on the school side, $97,220 the position taking over has received additional duties which are significant and the salary increase is $20,000 for a net savings of $77,200 in this fiscal year.
Councilman Conley was not in favor of the raises as part of the consolidations. We can find the extra $66,000 for library and relate it to the raises in all three proposals.
The City Manager stated this is the arrangement as discussed with the School Committee to share the cost of the base salary. We are asking a person to do another job and not paying them for it.
Councilman Conley stated that he is against all of the consolidation proposals because they contain raises due to the times that we are in. Other people are being asked to do more work in their jobs no matter what sector they are in, if they have a job, are not being told they are getting raises. We don't know if we are achieving the right measurement for those raises. We are setting a precedent what is the baseline for that when that happens for example with the expertise for a Finance Director under consolidation. I believe it would be better spent on libraries than here.
The City Manager stated that his experience as an HR Director leads to this being pretty close to what you generally get.
Mayor Rogers stated that this consolidation adds 15-20 buildings to his management it's not just picking up a broom and adding a mop. He is doing two jobs instead of one now. He is doing an excellent job since he took over in June. Some of these duties are contractual. If we added extensive new duties to the contract and did not give additional fees we would receive a grievance.
Councilman DiGioia stated in this economic climate this is inappropriate and with these in the budget I will not support this budget.
The Mayor asked where are we going to get these savings if we take these out?
Councilman DiGioia stated the process is flawed.
Councilman Conley stated he cannot support it.
Councilwoman Kleyla called the question.
On a roll call vote Mayor Rogers, Aye, Assistant Mayor Rose, Aye, Councilwoman Kleyla, Aye, Councilman DiGioia, Nay, Councilman Conley, Nay.
The City Manager continued with the IT consolidation of the city and the school. The new IT Director will be from the school side, they bring 3 technical staff members with her from the school side. IT on the city side is a staff of one. We did have to consider the differences between school and city and how to share these resources to get more for the money you are spending. The city side current position will be a lower position now. This would be a combined staff of 5 people now between the city and the schools. This will allow us to introduce more technology. The savings are not as realized it is more a shared savings of staff.
School Committee member Rossi testified on this issue in support.
Councilman Conley stated everything he just said regarding the facilities director position, it is not about people or the job they do. The $20,000 recommendation has all the same issues it did on the other one and there is no savings, we are just taking $20,000 from our person and putting it on the other. He listed concerns on the MOA.
The Assistance Solicitor provided some clarification regarding the MOA.
On a vote there is a motion to accept the City Manager's recommendation by Assistant Mayor Rose, seconded by Councilwoman Kleyla and on a roll call vote, Mayor Rogers, Aye, Councilman DiGioia, Nay, Councilman Conley, Nay.
The City Manager continued with the Consolidation of Municipal Court. Summarizing what was already stated at the previous meeting.
Councilman Conley stated that he already stated his oppositions at the previous meeting and restated those oppositions.
Valerie Perry, 30 Wannamoisett Road, former City Clerk and the person who brought the court to the City of East Providence is here and would like to speak. A summary of her points are as follows:
With the exception of Councilman Conley no one is present who was present at the time of the inception of the court.
Valerie was the City Clerk for 14 years, served 6 years on the Council, previous to the Assistant to the City Manager.
In 1990 she was appointed as Clerk. In 1991, then Mayor Sullivan asked to bring a Municipal Court to the City.
She contacted all of the Municipal Courts throughout the State and researched the issue.
Legislation was introduced and it was established.
Court was on the 3rd floor at City Hall.
The City Clerk's office was wired into the court upstairs and she was the Court Administrator. At the time Mr. Conley was the City Solicitor. He never mentioned any separation of powers, he put the legislation together and she was appointed the Court Administrator.
She was in the courtroom and the other clerks took in the money. She trained the staff. The staff was appointed by the City Council and served at the pleasure of the Council, including the Bailiff and the Judge.
The Court staff joined a union and were accepted.
There are 23 Cities and Towns with Municipal Courts and 8 of them are administrated out of the City Clerk's Office.
There are no communities with a problem regarding separation of powers.
Councilman DiGioia stated part of the reason why he was not supporting it has to do with a violation of separation of powers and if you take that out of the equation, the raise and a violation of our Charter.
Valerie Perry came back to the podium asking what the violation of the Charter is.
Councilman DiGioia stated the term of years.
Valerie Perry stated there is nothing in the charter which says the term is two years. The City Council appoints a City Clerk but does not say every two years. Valerie Perry ready from the Charter the City Clerk section.
There are 8 city and town clerks appointed by the Council and East Providence is the only one that has been re-appointing every two years. Warwick never ever has to do this.
Assistant Solicitor Craven concurred with the legal interpretation. It doesn't say the clerk couldn't leave or she would be bound to the City for two years, it's just what she is paid and the perimeters of that.
Valerie Perry added that the increase of salary should be brought up to the level that she should be, she makes almost $10,000 less than the deputy. If you bring in a Planning Director you are not going to bring them in less than someone who is under them. This position since she was there has been downgraded, East Providence is down near the bottom. It doesn't have to be a raise due to Municipal Court. The Clerk was always considered a Department Head when she was here.
Motion for approval by Councilwoman Kleyla, seconded by Assistant Mayor Rose, Councilman Conley, Nay, Councilman DiGioia, Nay, Mayor Rogers, Aye.
The City Manager's cuts and adjustments to the budget were explained again. The final number was stated.
The City Manager asked Council to approve post employee benefits, meaning that the benefits which were previously given to retirees be allowed to be adjusted. This would create uniformity. If you can consolidate into one or two programs your premiums will go down and asking them to pay more of a fair share in this day and age is not unheard of. It's been done in other places successfully. The Council would have to make this decision in the form of a vote. They were contractual at the time but are not now because the current bargaining unit cannot bargain for past employees. The Schools have already applied a similar method to their retirees, though not at a 100% compared to 0% on the City side.
Councilman DiGioia questioned possible legal action. The City Manager stated based on private unionized employers and other States it has been done and prevailed.
The Assistant Solicitor weighed in relaying what the State is currently looking to do.
Councilman Conley asked to see a thorough legal opinion. When a retiree receives their contract at the moment they retire for their years of service they have a contract that this is what they get when they retire. To unilaterally change a benefit they acquired at that moment the City would be undoing that moment in time. Co-pay could be seen as a slippery slope opening up the possibility of significant changes.
The Mayor asks what is the Council's pleasure. There is a motion to approve by Assistant Mayor Rose, seconded by Councilwoman Kleyla, under discussion she asked if anyone knows how this was handled on the school side. The City Manager stated that legally we are in the area that is new, that's not to say it's not the right thing to do, you proceed cautiously. Fiscally it is the right decision to make.
Chairman Tsonos stated they are pursuing the same issue.
On a roll call vote, Councilman Conley Nay, Councilman DiGioia Nay, Councilwoman Kleyla, Aye, Assistant Mayor Rose, Aye, Mayor Rogers, Aye.
Speaking against the motion:
1. John Faria, 20 Rowlely Street
What makes you think you will prevail when this goes to the arbitrator when a grievance is filed?
A discussion ensues on this topic. Mr. Faria stated that in the event of a challenge they will not prevail. This is a contract when they leave. This was a bad move on the part of the Council, making them pay the same amount without bargaining.
2. Chief Kluznik asked what exactly will they be paying? He stated he would be receiving many phone calls on this tomorrow.
The City Manager states a 20% premium share to provide uniformity.
Mayor Rogers asked under Roberts Rules of Order to reconsider his vote. The Assistant Mayor takes the Mayor's seat. The motion is made by the Mayor seconded by Councilwoman Kleyla.
Under discussion the Mayor stated that he wants to balance the budget but not create a hardship on the people of the community as far as raising taxes, following the comments I am not sure this is the right thing to do. I am not sure there is enough information. I want to help the deficit elimination on the school side but this may not be the way to do it.
The motion by the mayor is to not approve, seconded by Councilwoman Kleyla and on a roll call vote, Councilman Conley, Aye, Councilman DiGioia, Aye, Councilwoman Kleyla, Aye, Assistant Mayor Rose, Aye, Mayor Rogers, Aye.
Director Eggeman stated that at this point right now a deficit of $3.175 will be sent back to the School Committee to make further cuts.
Assistant Mayor Rose suggested the could raise the funds for the libraries if the estimate on the business permits went to $40 and to increase the Vin checks to $20.
Director Eggeman stated that based on recommendations of the analysis throughout the State the suggested $25 was a reasonable starting point.
Discussion ensues on this topic. This was decided not to be a viable option as they do not meet the requirements for ordinance changes.
Speaking on this topic:
1. Tom Riley
2. Freddie Rybka
Councilman DiGioia asked about the additional $750,000 to shift over to the School Department which we are sending over today, what if we give them $690,000 and keep the $60,000 for the Library.
A motion is made by Councilman DiGioia, to shift the shifted monies for the School Department $750,000 and take $66,000 and give that to the Library instead. On a roll call vote it is unanimous.
On the revenue side the City Manager calls Director Steve Coutu to the podium. The details are discussed regarding the contract to manage our sewer system. It is a 10 year contract with 2 years in. There is an extension option on the contract. Director Coutu explained the fully procured contract and extension. The effect on the current budget would be further funds of $1 million to reduce the deficit this budget.
Councilman Conley stated that he likes the idea but not doing it without a lot of information in front of us is not a good way of handling this. I would like to leverage it into something more. There is an incentive for them. Further discussion continues.
A motion is made by Councilman Conley to send this back to the City Manager for further study seconded by Councilwoman Kleyla and on a roll call vote it is unanimous.
The budget numbers are confirmed by Director Eggeman prior to be voted on.
Councilman Conley thanked the City Manager and the Finance Director but would not vote for the budget based on the raises.
A motion to approve the budget is made by Councilman Rose, seconded by Councilwoman Kleyla, Councilman DiGioia Nay, Councilman Conley, Nay, Mayor Rogers, Aye and the budget passed 3-2.
RESULT: ADOPTED [3 TO 2]
MOVER: Thomas Rose Jr., Assistant Mayor
SECONDER: Katie Kleyla, Councilwoman
AYES: Katie Kleyla, Thomas Rose Jr., Bruce Rogers
NAYS: William Conley Jr, Michael DiGioia
IV. New Business
A. City Managers Report by Peter Graczykowski
1. East Providence Fire Department
The Fire Chief was called to the podium. The City Manager provided a brief description on the Safer Grant. The City Manager does not recommend accepting the grant due to the increase in funding it requires going forward.
Councilman Conley stated there was financial analysis provided included a savings in the out years as well with a minimal cost going forward and negating the overtime.
The Chief explains their cost analysis as provided previously.
The Mayor stated due to the time constraint he would like to refer this to the November 1 docket and instructed the City Clerk to do so.
B. Introduction of Ordinances
1. An Ordinance Authorizing the Director Of Finance to Borrow Funds in Anticipation of Revenue
SECTION I. The Director of Finance is authorized to borrow during the fiscal year ending October 31, 2012 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: Ellen Eggeman
RESULT: ADOPTED [3 TO 2]
MOVER: Thomas Rose Jr., Assistant Mayor
SECONDER: Katie Kleyla, Councilwoman
AYES: Katie Kleyla, Thomas Rose Jr., Bruce Rogers
NAYS: William Conley Jr, Michael DiGioia
2. An Ordinance Authorizing the Director Of Finance to Borrow Funds in Anticipation of Taxes
SECTION I. The Director of Finance is authorized to borrow during the fiscal year ending October 31, 2012 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: Ellen Eggeman
RESULT: ADOPTED [3 TO 2]
MOVER: Katie Kleyla, Councilwoman
SECONDER: Thomas Rose Jr., Assistant Mayor
AYES: Katie Kleyla, Thomas Rose Jr., Bruce Rogers
NAYS: William Conley Jr, Michael DiGioia
3. An Ordinance Ordering the Assessment and Collection Of Property Tax on the Ratable Real Estate, Tangible Personal Property and an Excise Tax on Registered Motor Vehicles and Trailers
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-nine Million Three Hundred Thousand ($99,300,000) dollars nor less than Ninety-eight Million Three Hundred Thousand ($98,300,000) 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, 2011 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, 2012 complete list of the names of the persons taxed and of the total value of all the real estate and personal property 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 2012 and the 1st day of July, 2012 and provided further that if said tangible personal property, motor vehicle, and real estate taxes are paid in full on or before the 1st day of July, 2012, a discount of three per centum (3%) of the total taxes on said tangible personal property, motor vehicles, and real estate shall be granted, and all taxes remaining unpaid on the 1st day of July, 2012 shall carry until collected a penalty at the rate of twelve per centum (12%) per annum from the 1st day of June, 2012 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, 2012, the second installment of twenty-five per centum (25%) on or before the 1st day of September, 2012, the third installment of twenty-five per centum (25%) on or before the 1st day of December, 2012 and the fourth installment of twenty-five per centum (25%) on or before the 1st day of March, 2013.
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, 2012 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, 2013 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: Ellen Eggeman
RESULT: ADOPTED [3 TO 2]
MOVER: Katie Kleyla, Councilwoman
SECONDER: Thomas Rose Jr., Assistant Mayor
AYES: Katie Kleyla, Thomas Rose Jr., Bruce Rogers
NAYS: William Conley Jr, Michael DiGioia
V. Adjournment
1. Motion To: Adjourn
RESULT: APPROVED [UNANIMOUS]
MOVER: Katie Kleyla, Councilwoman
SECONDER: Thomas Rose Jr., Assistant Mayor
AYES: Conley Jr, DiGioia, Kleyla, Rose Jr., Rogers
Approved by Council: March 6, 2012