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| CITY OF EAST PROVIDENCE RHODE ISLAND JOURNAL OF REGULAR COUNCIL MEETING Tuesday, April 17, 2012 6:45pm Executive Session 7:30 PM Regular Council Meeting |
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I. Call To Order
II. Salute To The Flag
III. Consent Calendar
1. Letters
1. Resolution from the Cumberland School Committee in support of a June 1 layoff notice date as provided in H7272.
2. Resolution from the Cumberland School Committee in opposition to binding arbitration H7617 and H7620.
3. Resolution from the Cumberland School Committee in opposition to contract continuation H7250 and S2532.
4. State Planning Council notice of public hearings “Rhode Island water 2030” State Guide Plan Element 721.
5. Resolution from the Town of Glocester in opposition to H7617 regarding binding arbitration.
6. Coastal Resources Management Council public notice for consideration of application of Richard and Doreen Ku, 13 White Avenue (02915).
7. Coastal Resources Management Council April 2012 Calendar.
8. Letter to East Providence City Council from Mr. and Mrs. DeCrecenzo, Jr. regarding tax exemption support for the Rhode Island Philharmonic Music School.
9. Letter to East Providence City Council from Lesya Kreshchuk regarding tax exemption support for the Rhode Island Philharmonic Music School.
10. Resolution from the Town of Narragansett regarding opposition to firefighter and police arbitration H7618 and H7619.
11. Resolution from the Town of Narragansett regarding opposition to municipal employee arbitration H7620.
12. Resolution from the Town of Narragansett regarding opposition to school employee arbitration H7617.
13. Resolution from the Town of Narragansett regarding opposition to continuation of teacher contracts H7250.
14. Coastal Resources Management Council Semi Monthly Meeting Notice, April 10, 2012 6PM, Corliss Auditorium, URI.
15. Resolution from the East Greenwich School Committee in support of a June 1 layoff notice date as provided in H7272.
16. Letter regarding a report of vote from the Burrillville Town Council regarding support for H7581 Public Utilities and Carriers - Public Transit Investment, RIPTA Funding.
17. Resolution from the Town of Exeter in support of a referendum relating to Code of Ethics as presented in the State Legislative Joint Resolutions S2369 and H7603.
18. Letter regarding a report of a vote from the Burrillville Town Council regarding support for S2673 and H7561 use of post office boxes for voter registration where voter does not receive home mail delivery.
19. Resolution from the Exeter Town Council in support of various pieces of legislation to help municipalities resolve their financial problems, H8006 and S2826, H8011 and S2828, H8010 and S2824, H8009 and S2825, H8008 and S 2823, H8012 and S2829 and H8007 and S2827.
2. Cancellation/Abatements
| Year | |
| 2011 | $2,891.59 |
| 2010 | $877.03 |
| 2004 | $25.97 |
| 2002 | $11.13 |
| Total | $3,805.72 |
3. Council Journals
April 3, 2012 Regular Council Meeting
A motion to approve the Consent Calendar is made by Councilwoman Kleyla, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.
IV. Public Comment
1. Joseph Tavares - Charter Commission
2. James Briden - Pond View
3. Tom Riley - Vote from PO Boxes and concerns
V. Licenses Not Requiring Public Hearing
1. Peddler/Hot Dogs Etc.
Francisco Garcia DBA Mac Dogs, 21 Evergreen Drive, Apartment 76, East Providence (02914)
The Mayor states that while he opposes peddlers and hawkers and will vote to possibly eliminate the licenses in December he will support this one right now as the others have already been granted and the applicant is an East Providence resident.
Motion to approve is made by Councilwoman Kleyla, seconded by Councilman DiGoia and on a roll call vote it is unanimous.
2. Hawker
Steven Yuppa DBA S & S Novelty, 52 Burgess Avenue (02914)
Councilman Conley states that he is concerned regarding the structure of the business taxes paid by East Providence businesses and that hawkers and peddlers are taking that business away from tax-paying businesses.
Mayor Rogers stated that a wholesale business such as this is something that the owned businesses can't compete with and it really hurts the local businesses especially on Holidays adding that he is going to be looking at not granting these kinds of licenses upon renewals in December. However, he will not oppose this license at this time as the others have already been approved until December and the owner and seller both reside in East Providence.
Councilman Conley added that though they reside in the City they are not paying all the other expenses and overhead as our local businesses and their tax money is going to another municipality who is getting all the benefits while our businesses are getting a detriment and that companies like this do this hawking all over the State taking advantage of holiday sales which the local businesses wait all year for.
Mayor Rogers vacates his seat as no motion is heard. Motion fails 3-2
VI. Public Hearing - Ordinances Final Passage
1. An ordinance regarding business registrations.
AN ORDINANCE IN AMENDMENT OF CHAPTER 8 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “LICENSES AND BUSINESS REGULATIONS”
SECTION I. Article I entitled “In General” of Chapter 8 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled “Licenses and Business Regulations” is amended to read as follows:
Sec. 8-12. Business registration required. Each business, including, but not limited to, wholesale, retail, commercial, professional service or manufacturing, whether by sole proprietorships, partnerships, corporations or any business entity, shall register its business, company, trade or office situated in the City of East Providence with the City Clerk. Each registration shall contain the name of the firm or business, the name of the owner or operator of the firm or business, the type of business to be conducted and other basic information.
Sec. 8-13. Fees. There shall be a fee for each registration. The registration fee shall be $25.00.
Sec. 8-13. Procedure; exemptions.
A. Upon registration of a business, a registration certificate shall be issued to the registrant. No other business of the same trade name shall be allowed to register once a certificate of registration has been issued without the approval of the prior registrant in writing. Every registration certificate shall expire the 30th day in November and shall be renewed annually. Upon payment of the required fee. In the first year, the fee will be collected by April 1 and then by December 1 of each subsequent year. No certificate shall be renewed if the business fails to provide proof from the Tax Collector that all municipal taxes have been paid to date. Every certificate of registration shall be placed in a conspicuous location in each business establishment.
B. Any business required to obtain a liquor, victualling or any other license to operate under any other section of the General Laws shall be exempt from the requirement of this statute.
Sec. 8-14. Violations and penalties. Any person, whether as principal, agent, employee, or otherwise, who violates any of the provisions set forth herein, shall be fined not exceeding $25.00 for each offense. The fines shall inure to the City, and each day that the violation continues shall be deemed to constitute a separate offense.
Sec. 8-16. Business Operating License--Applicability.
Every individual, partnership and/or corporation which has a premises within which is carried on an occupation or business for any purpose shall obtain a "license to operate" within the City of East Providence approved by the City Council and issued by the City Clerk. Every business license shall expire on the 31st day of May and shall be renewed annually upon approval and payment of all fees. No license shall be issued if the business fails to provide proof from the Tax Collector that all municipal taxes have been paid to date.
Sec. 8-17. Issuance of license; reasons for denial.
Licenses shall be issued provided that the named business does not adversely affect the health, welfare and safety of the citizens of said City. If any business entity is not in full compliance of the laws and ordinances within the City of East Providence which govern said businesses, the City Council, after notice and an opportunity to be heard is issued to said business, shall have the authority to deny or revoke said operating license until said business is in full compliance. Said City Council must believe that their action is in the best interest of the citizens of the City of East Providence and must show "good cause" to deny or revoke said license.
Sec. 8-18. Fee.
Each individual, partnership and/or corporation or other entity required to become licensed under this section shall pay a fee of $75.00 to the City of East Providence, said moneys to go to the general fund.
Sec. 8-19. Violations and penalties.
Anyone convicted of a violation of any of the provisions of this section shall be punishable as provided in Chapter 1, General Provisions, Section 1-16, of this Code.
Sec. 8-20. Payment of Taxes; Taxes to be paid prior to issuance or transfer of business license.
A. All licensed businesses in the City of East Providence requiring a business license to operate shall, at the time of the renewal or transfer of such license, show proof that all business-related taxes due to the City of East Providence have been paid before obtaining a business license.
B. These taxes shall include but not be limited to all tangible personal property taxes; all sewer service and assessments, and real estate taxes, where applicable; and all other local taxes relating to that particular business.
Sec. 8-21. Violations and penalties.
Any person or business violating any of the provisions hereof shall be subject to a fine not exceeding $100.00 for each offense and/or the immediate revocation of any existing business licenses and denial of any application for such business license.
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 Finance
Assistant Mayor Rose states this is the reason why we have issues paying insurance and taxes and taking care of the buildings and this is one of the reasons why we have removed the fee.
Tony Fereirra, 44 Brightridge Avenue testifies in favor of removing the fee. He also addresses the issue of Hawkers and how this affects the business where he works. How regularly businesses have to pay an inventory tax among other taxes that these types of vendors don't have to pay.
Councilwoman Kleyla asks about the status of the reimbursement process that she didn't want to charge the $25 but knew that the City was going to have to figure out a way to refund the checks with an antiquated system and added she would have been fine with stopping the fee next year so she will still not be supporting this.
Motion to approve is made by Assistant Mayor Rose, seconded by Councilman DiGoia and on a roll call vote Councilwoman Kleyla votes Nay, the motion passes 4-1.
2. An ordinance amending parking fines.
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”
SECTION I. Section 18-11 entitled “Traffic fines” of Article I entitled “In General” of Chapter 18 entitled “Vehicles and Traffic” is amended to read as follows:
Sec. 18-11. Traffic fines.
Fines for violation of the motor vehicle regulations contained in this chapter are hereby fixed as follows:
(1) Defiance of corner law . . . . . $25.00 $35.00
(2) Operating motor vehicle in violation of posted restricted street…..25.00
a. First violation……..$ 85.00
b. Second violation….$110.00
c. Third violation……$150.00
(3) Parking at bus stop . . . . . 25.00 35.00
(4) Parking at crosswalk . . . . . 25.00 35.00
(5) Parking in front of driveway . . . . . 25.00 35.00
(6) Parking in front of hydrant . . . . . 25.00 45.00
(7) Parking in restricted area . . . . . 25.00 35.00
(8) Parking too far from curb . . . . . 25.00 35.00
(9) Parking with left wheel at curb . . . . . 25.00 35.00
(10) Violating time regulation . . . . . 25.00 35.00
(11) Parking in fire lane . . . . . 50.00 65.00
(12) Parking on sidewalk . . . . . 25.00 35.00
(13) For violation of snow emergency ordinance (plus towing and storage charges, if any) . . . . . 50.00 60.00
(14) Parking by commercial vehicles in restricted areas . . . . . 50.00 60.00
(15) Parking in disabled parking:
a. First violation . . . . . 75.00 100.00
b. Second violation . . . . . 150.00 175.00
c. Third violation . . . . . 300.00 325.00
All of the above traffic fines are subject to a four-dollar increase upon issuance of a summons for such violations. A $20.00 late fee will be applied to the above traffic fines if said fine is not paid within 10 days from the date noted as the date of the offense.
SECTION II. This ordinance shall take effect upon second passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.
Requested by: Chief of Police
A motion to approve is made by Councilwoman Kleyla, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.
3. An ordinance amendment regarding collection of taxes.
AN ORDINANCE IN AMENDMENT OF CHAPTER 16 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “TAXATION”
SECTION I. Section 16-51 entitled “Collection” of Article IV entitled “Property Tax on Ratable Real Estate and Tangible Personal Property and Excise Tax on Registered Motor Vehicles and Trailers” of Chapter 16 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled “Taxation.” is amended to read as follows:
Sec. 16-51. Collection.
VII. New Business
A. City Managers Report by City Manager Peter Graczykowski
1. Tree City USA Announcement
The City Manager stated that a Tree City USA announcement was sent to Tree Warden Michael Bartlett from the City's Parks Department that on Friday April 27th as part of Arbor Day East Providence has been selected as the host community this year. There will be a tree planting at the newly renovated Squantum Woods Park on Veterans Memorial Parkway and Council and public are invited to join in celebration.
2. Ordinance Regarding Waste Water Rates
The Wastewater rates discussion will be delayed until ordinances later on docket.
3. East Providence Budget Commission Activity Update
The Budget Commission update addresses 5 items, one is the United Methodist Elder Care Council March 6th vote supporting the special legislation for tax exemption. The Budget Commission under it's statue on April 5th reversed this with the reasons given as an adverse financial impact on the City and that it would also exempt the property statewide which the General Assembly noted.
Councilman Conley disagrees with the action and either one of the reasons. Stating that this passes the straight face test based on the presentation putting them on the tax rolls could result in up to $58,000 with no financial analysis to show the value in dollars for the service they provide. They provide services to our moderate and low income elderly who for the most part are uninsured at probably hundreds of thousands per month. Secondly the reasoning of exempting them statewide is not real, all that has to be done is to fix the resolution which leg council at the State House can fix as it goes forward and gets put into legislation. Adding that he doesn't accept the explanation provided although the Budget Commission is attempting to thwart the acts the elected officials have done.
Mayor Rogers stated he was very careful to represent the Council and abstained even though he disagreed with the Council's wishes he did support their decision and he would have been only one vote and would have lost but he made their wishes known.
The Budget Commission's passage of rainy day fund ordinance which would create a rainy day and capital reserve fund which is used for the repair of infrastructure the funding for this reserve fund would be achieved through limitation of expenditures and cannot exceed the 99% of revenue. When it reaches 10% of revenues you would have a 10% rainy day fund. The hope is that this ordinance will end up as an amendment to the Charter if passed by the Council. A copy has been provided in the Council packet.
Councilman Conley asks a question of the law department, does that mean that the ordinance is now codified? Solicitor Andreoni said yes. When the Budget Commission leaves the City the ordinance will be subject to same action as any other ordinance. Councilman Conley stated he was confused with the water rate ordinance and asked why is this one coming before Council? Solicitor Andreoni stated his opinion is they can do it themselves they don't have to come before the Council and do it. The City Manager stated that it was for non-legal reasons there is a difference regarding the sewer rates and we are asking for a parallel track. There will be two public hearings on the 19th and the 26th for more discussion from the public. The other ordinance will be before the Council to make it onto the Charter amendment list. The list is being developed, one discussion is to change of the fiscal year.
Councilman Conley asked what public policy requires that the rainy day fund get passed directly but the water rates ordinance be passed as a co-passage by the Council and Budget Commission?
The City Manager stated the Commission is asking for a parallel passage on this one not on the other.
Councilman Conley stated that if the Council chooses not to vote for the increase it won't become law then? If that's not the case then why is it coming here?
The City Manager responded simply for more exposure and public participation they are looking for Council support to do the right thing and support the fund.
Councilman Conley said the right thing is to do what was suggested in 2010 and get the whole transaction done instead of pursuing parallel tracks. The right thing is not to increase rates without realizing and redoing that deal.
Mayor Rogers stated from the Council perspective I agree with Councilman Conley. The Budget Commission has different scenarios on the water rates so that technically they may be convinced to do otherwise. There are not a lot of alternatives but there are scenarios.
The City Manager stated the review of the contract is not an option we have asked them and they have said no. Its a valid contract and they said no. Its a legal contract there is nothing we can do. The Budget Commission can do the administration or the Council.
Councilman Conley states that contracts are renegotiated all the time he received no documents about the negotiations or strategies. He doesn't think a lot took place.
Mayor Rogers stated I think they are looking for that debate publicly.
The City Manager continued his report stating that an amendment to an existing ordinance which deals with separation of service was completed by the Budget Commission. Eliminating the two weeks notice and removing the provision that temporary employees be laid off before full time employees and this is to assist in City in reorganization which may happen at some point
The approval of the engagement letter for the Bacon and Company was signed. The Letter for Council's reference negates the action the Council took on April 3rd 2012. This was discussed with Bacon and Company as they have a contract and have already performed the work. It's a $40,000 fee and the fee contained a $500 increase this item was brought to the attention of Budget Commission because its an existing contract and City doesn't want to be in violation. The Budget Commission felt it prudent to sign the letter.
Assistant Mayor Rose stated the work wasn't complete and they were supposed to come to Council and present and they didn't. They didn't do their part so why should we do ours
The EP Pension Board action and it's fiscal impact to the City is in the Council packet to keep the council informed. One of the assumptions is the rate of return. What interest can the pension plan expect to make because the Auditor General has to approve all the studies, the rate of return 8% the Budget Commission took the authority to rescind to 7.5%. This will decrease the funding estimated it will go down below 40%. We are already below the 60% which is critical if the economy improves then we will get to 60% funding that much quicker. Councilman Conley asked what table did you use and the City Manager responded the same table as the State.
B. Reports Of Other City Officials
1. School Committee Update by School Committee Member Council Liaison Chrissy Rossi
Ms. Rossi reviewed the upcoming school events and the newly formed non-profit to ensure continuance of middle school sports. The report was submitted for the record.
C. Council Members
1. Bi-Weekly Update (by Mayor Rogers)
The Mayor stated it was a mild winter and $200,000 was saved for lack of snow removal. The Budget Commission is taking $100,000 to pay debt and putting back in the fund $100,000 for Public Works to assist in equipment purchases or upgrades. The bill at the State legislature passed and was sent to Governor Chafee allowing cities and towns to create polling places with more voters saving tax payers money. Wednesday, April 18th at 6pm is the first meeting to allow the public to view the new ward lines. A local City business forum is being held on April 24th department heads and business community members will discuss local development obstacles which may occur. Please call Planning or the City Manager with questions. Tuesday, April 24th is the Presidential Primary polls are open 7am-9pm there are only 4 polling locations open in City Ward 1 Rumford Towers, Ward 2 the EP Senior Center, Ward 3 Martin Middle School, Ward 4 Oldham School. Thursday, April 26th the Budget Commission forum for Wards 1 and 2 will be at the EP Senior Center. For Arbor Day this year the City of EP is proud to have been chosen as the host community. This is the 20th consecutive year as a Tree City USA. At 10am on April 27th at the newly renovated Squantum Woods Park. On May 5th there is a walk, the walk to stop bullying in RI at Roger Williams Park it begins at 9am www.ripin.org for more information. The Mayor adds he will be there please join him.
2. Celebrate doing Business in East Providence (by Councilman Conley)
Councilman Conley stated that last Wednesday evening he had over 200 business people and representatives of businesses in East Providence from high-tech to icons. It really served as a rallying point for the business community in East Providence to come together and start to talk about what it is that has brought them and kept them in East Providence. As well as what they can do for each other and to identify the strengths the City has to respond and build on and what we don't do as well as we could be doing. This forum will serve as the beginning of a discussion and will become a resource for this Council as we go forward with an identifiable business policy. Adding that as a small business person in the City and an elected official he will put together ideas to be brought to the City Council to share with one another and create future business programs utilizing the energy and excitement which was generated that night as a resource to bring back to the Council for a business policy.
D. Resolutions
1. A resolution regarding tax exempt status for the RI Philharmonic School.
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
CITY OF EAST PROVIDENCE
WHEREAS, the City of East Providence is proud of the fact that the Rhode Island Philharmonic Orchestra & Music School is located within the City; and
WHEREAS, the Rhode Island Philharmonic Orchestra & Music School has been the leader in promoting the arts in Rhode Island and in fact throughout the United States; and
WHEREAS, the Rhode Island Philharmonic Orchestra & Music School is desirous of having its tax exempt status remain in effect as of December 31, 2011.
NOW, THEREFORE, BE IT RESOLVED that the East Providence City Council hereby supports the real and personal property of the Rhode Island Philharmonic Orchestra & Music School, a Rhode Island nonprofit corporation be designated tax exempt as of December 31, 2011 and thereafter.
Requested By: Councilman DiGioia, Councilman Conley and Councilwoman Kleyla
Councilman DiGioia stated that he appreciates the Philharmonic and it will be a travesty if the City loses it. He thanked the other members and made a motion to approve, the motion was seconded by Councilman Conley and under discussion the Mayor stated he supports this and feels on this item it will not be a hindrance on our various tax payers do to the service they are providing to our schools. He had previously asked to see their financial records which were provided and their situation is they are running a deficit and they offer a partnership to us so he will support, on a roll call vote it is unanimous.
E. Introduction Of Ordinances
1. An ordinance related to foreclosures.
AN ORDINANCE IN AMENDMENT OF CHAPTER 4 OF THE REVISED ORDINANCES OF THE CITY OF EAST PROVIDENCE, RHODE ISLAND, 1998, AS AMENDED, ENTITLED “BUILDINGS AND BUILDING REGULATIONS.”
SECTION I. Chapter 4 of the Revised Ordinances of the City of East Providence, Rhode Island, 1998, as amended, entitled “Buildings and Building Regulations.” is hereby amended to add the following:
Article IV. Foreclosure Requirements
Sec. 4-431. Foreclosure Requirements for Owner Occupied Residential Properties.
(A) Definitions
1. The City shall mean the City of East Providence.
2. Residential premises/property shall mean real property that is owner-occupied as an owner's principal resident, located within the City of East Providence, that is either a single-family or a structure containing not more than four residential units, and shall also include a residential condominium unit or a residential co-op unit occupied by an owner as an owner's principal resident.
3. Loan/mortgage conciliation conference coordinator shall mean an individual employed by a HUD-approved independent counseling agency to facilitate the discussion between the homeowner/mortgagor and the lender/mortgagee.
4. Loan/mortgage conciliation conference shall mean the formal discussion and negotiation taking place at the call of the loan/mortgage conciliation conference coordinator between the homeowner/mortgagor and the lender/mortgagee.
5. Homeowner shall mean an individual who owns and resides in residential real property located in the City of East Providence, and for whom such residential real property is a principal resident.
6. Lender shall mean an entity which has advanced funds secured by a mortgage on residential premises, and recorded in the Land Evidence Records of the City.
7. The Parties shall mean the homeowner/mortgagor and the lender/mortgagee
8. Rules and regulations shall mean any rules adopted by the City necessary for the proper enforcement of this Ordinance to interpret and secure its intent.
(B) Statement of Policy. It is hereby declared that residential mortgage foreclosure actions, caused in part by so-called sub-prime mortgage lending and predatory lending practices as well as unemployment and underemployment, have negatively impacted a substantial number of homeowners in the City. Increasing numbers of foreclosures leads to increases in unoccupied and unattended buildings in the City and cause the unnecessary and unwanted displacement of homeowners and tenants who desire to live in the City of East Providence.
(C) Purpose. The purpose of this ordinance is to protect the public by providing early, HUD-approved independent counseling agency supervised intervention in residential owner-occupied mortgage foreclosure cases which will assure timely determination of eligibility under various federal, state and local programs established to facilitate loan work-out and other solutions to permit residential homeowners, where possible, to retain their properties and permit lenders to move forward to auction/sale of the properties and recordation of a foreclosure deed upon conclusion of the process.
(D) Filing/Recording of Foreclosure Deed. From and after the effective date of this Ordinance, no deed offered by a lender/mortgagee to be filed with the City Clerk as a result of a mortgage foreclosure action shall be accepted and/or recorded in the Land Evidence Records of the City until and unless the following events have occurred:
a. The lender/mortgagee shall provide written notice to the City of its intent to foreclose on the subject residential property at the same time it issues notice to the homeowner/mortgagor of the foreclosure action. Such notice must include plat and lot information.
b. Said notice shall be filed by the lender/mortgagee with the City Clerk.
c. Following the filing of such notice, the Parties shall participate in a mandatory loan/mortgage conciliation conference at a location mutually convenient to the parties. Telephone participation by the lender/mortgagee is acceptable.
d. Said conciliation conference shall be scheduled at a time and place to be determined by the conciliation conference coordinator, but not later than twenty-one (21) days following the mailing of the notice of intent to foreclose. The Parties will be noticed by certified and first class mail.
e. Prior to the scheduled conciliation conference, the homeowner/mortgagor will be assigned a loan counselor to be provided by a HUD-approved independent counseling agency.
f. The homeowner/mortgagor shall cooperate in all respects with the housing counseling agency, providing all necessary financial and employment information. The homeowner/mortgagor shall complete any and all loan resolution proposals and applications as appropriate.
g. The conciliation conference will require the exchange of information provided as required by subsection (f) to the representative of the lender/mortgagee.
h. If after two attempts by the conciliation conference coordinator to contact the homeowner/mortgagor, the homeowner/mortgagor fails to respond to the conference coordinator's request to appear for the conciliation conference, or the homeowners/mortgagor fails to cooperate in any respect with the requirements outlined in this Ordinance, the requirements of the Ordinance will be deemed to be satisfied upon verification by the HUD- approved independent counseling agency that the required notice was sent; and if so, a certificate will be issued immediately by the HUD-approved independent counseling agency authorizing the lender/mortgagee to proceed with the foreclosure action including recording the foreclosure deed.
i. If, it is determined after a good faith effort made by the lender/mortgagee at the conciliation conference with the homeowner/mortgagor, that the Parties, cannot come to an agreement to re-negotiate the terms of the loan in an effort to avoid foreclosure, such good faith effort on behalf of the lender/mortgagee shall be deemed to satisfy the requirements of this Ordinance. A certificate certifying such good faith effort will be issued immediately by the HUD- approved independent counseling agency authorizing the lender/mortgagee to proceed with the foreclosure action to include recording the deed. Such a certification will be in the form of a document to be filed along with all other relevant documents with the City Clerk.
j. Upon the demand of the lender/mortgagee at any time following completion of the conciliation conference, if the lender/mortgagee is not invoking subsection (h), the HUD- approved independent counseling agency will immediately certify that the provisions of this Ordinance have been met.
k. The Parties shall complete the process required by this Ordinance within a period of forty- five (45) days from the initial notice provided in (a).
l. Cases involving premises which are not owner-occupied or which are not residential are not subject to the mandatory loan/mortgagee conciliation conference and may proceed directly to foreclosure and recordation of the deed concerning such property, presuming compliance with section 4-432.
m. Notwithstanding the foregoing, any lender/mortgagee which is headquartered within the State of Rhode Island and which services its own mortgages shall be deemed in compliance with the requirements of this section of:
(1) The lender/mortgagee provides homeowners forbearance relief requirements applicable to FHA-Insured Mortgages, as set forth in Chapter 8 of the HUD Handbook 4.330.1 Rev. 5, Administration of Insured Home Mortgages, as the same may be amended from time to time; and
(2) The deed offered by a lender/mortgagee to be filed with the City Clerk as a result of a mortgage foreclosure action contains a certification that the provisions of this sub-section have been satisfied.
n. The events set forth in paragraphs a through m shall not be required in the event that the aforementioned events are preempted by State law.
(E) Penalties. No deed offered by a lender/mortgagor to be filed with the City Clerk shall be accepted and/or recorded in the Land Evidence Records of the City if it is determined that the lender/mortgagor has failed in any respect with the requirements and provisions of this ordinance.
Sec. 4-432. Foreclosure Requirements for Rental Properties.
(A) Definitions
1. Bona Fide Tenant shall mean a person who has entered into a written or oral rental agreement with a homeowner or landlord (mortgage) with respect to a dwelling unit of a mortgaged residential premises no less than thirty (30) days prior to the foreclosure of the mortgagor's interest. Neither the mortgagor nor any member of his or her immediate family is a "bona fide tenant." The protections afforded a bona fide tenant exist regardless of whether the residential premises is or is not owner-occupied.
2. The City shall mean the City of East Providence
3. Rules and Regulations shall mean any rules adopted by the City necessary for the proper enforcement of this Ordinance to interpret and secure its intent.
(B) Notice to Bona Fide Tenants. Effective upon passage of this Ordinance, no bona fide tenant legally occupying a rental residential property within the City shall be forced to vacate that property in the event of a mortgage foreclosure action upon that property unless and until the following series of actions are taken:
a. Where any dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide tenant, and where the foreclosed mortgagor had provided essential services including, without limitation, heat, running water, hot water, electric, sewer or gas to such tenant, any successor in interest to be foreclosed mortgagor shall continue to provide the same essential services under the same terms and conditions to the tenant.
b. A successor in interest to a mortgagor shall provide notice to each bona fide tenant, as defined in Section (A) by mailing an envelope addressed to "Resident of Property Previously Subject to Foreclosure Sale" and by posing, in the same manner required for posting the notice of sale on the property to be sold, a written notice in English, Spanish and Portuguese stating the name and address of the successor in interest, and/or managing agent so that the tenant may know to whom the ongoing rental payments should be made.
c. Where a dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide tenant of the foreclosed mortgagor, the bona fide tenant assumes a month to month periodic tenancy governed by the provisions of Chapter 18, Title 34 of the Rhode Island General Laws, except in those instances in which the bona fide tenant has entered into a written rental agreement with a homeowner or landlord (mortgagor) with respect to a dwelling unit of a mortgaged residential premises. In such instances tenancy is assumed for the duration specified in the written agreement.
d. The lender/mortgagee shall provide notice to each bona fide tenant, as defined in Section (A), by mailing an envelope addressed to "Resident of Property Subject to Foreclosure Sale" and by posting, in the same manner required for posting the notice of sale on the property to be sold, at the same time notice is provided to the mortgagor, a written notice in English, Spanish and Portuguese: (i) stating that the real estate is to be sold in foreclosure, which may affect the tenant's right to continue to live in the property; (ii) stating the date, time and place of sale; (iii) providing the address and telephone number of Rhode Island Legal Services, and (iv) provide the name, address and telephone number of HUD-approved counseling agencies in Rhode Island. Failure of the lender/mortgagor to provide notice as provided herein shall not affect the validity of the foreclosure; however, no successor in interest to the mortgagor shall be permitted to initiate an action for possession of the premises against such bona fide tenant until notice as required herein, in addition to the notice required in subsection (d) is provided.
(C) Registration with the City Clerk. From and after the effective date of this Ordinance where any dwelling unit of a foreclosed mortgaged estate is occupied by a bona fide tenant, the successor in interest to be foreclosed mortgagor shall file with the City, through the City Clerk's Office a certificate of registration. Each Certificate of Registration shall state:
a. Name, address and telephone number of the lender/mortgagee.
b. Such description of each multiple dwelling/tenanted dwelling, by street number or otherwise, as will enable the easy location of same.
c. The name, address and telephone number of the agent appointed by the lender/mortgagee for the purpose of receiving service of process and other orders or notices.
d. The number of dwelling units in the building.
e. The names of all tenants and an identification of the type of lease said tenant is operating under.
f. The name and address, including the dwelling unit, apartment or room number of any person employed by the lender/mortgagor to provide regular maintenance service.
g. The name, address and telephone number of an individual representative of the lender/mortgagor who may be contacted at any time and who has the authority to make emergency decisions concerning the building and any repair thereto or expenditure in connection therewith.
h. The name and address of the fuel supplier, if any, and the grade of fuel oil used.
(D) Penalties. Any failure of a lender/mortgagee or successor in interest to a mortgagor to comply with the terms of this Ordinance will be penalized by a fine of not less than $1,000.00 per offense.
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: Assistant Mayor Rose
Assistant Mayor Rose explained that what this ordinance does is that it helps out those near foreclosure to work with banks more closely to get approval through HUD. It allows the people in the surrounding areas to have the banks stand up to their end of the bargain and keep the properties up. Assistant Mayor Rose makes a motion to approve and Councilman DiGioia asks for an update on the conflicts with case law which was brought up at the last meeting.
Solicitor Andreoni states that cities had to take the deeds and record them as State law preempts a refusal of the Clerk’s office. He contacted the solicitor in Warren and in Lincoln and he amended the section adding a letter "n" to cover that. He adds that he ran it by RIMFC and it seems to fit the case law.
Councilman Conley asks why not just take the offending language out?
Solicitor Andreoni stated it's a drafting question.
Councilman Conley asked what the decision said was it that the clerk couldn't refuse the acceptance? If so then if you remove that language then you solve the problem. Why is it that you chose instead to reference multitudes of sections of the statute?
Solicitor Andreoni stated it is not ambiguity if the state passes anything else we have covered it in our ordinance.
Councilman Conley thanked Assistant Mayor Rose adding this is a much needed added avenue of relief and it has worked well as indicated by the testimony of RIMFC his suggestion is that we delete the language which the court found for second passage, and delete the new language which creates ambiguity.
Mayor Rogers states this sound fair and requests the law department please check into this for second passage.
A motion to approve is made by Assistant Mayor Rose, seconded by Councilwoman Kleyla and on a roll call vote it is unanimous.
2. An ordinance regarding water rates.
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. Subsections (b) and (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:
(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.
(c) Effective November 1, 2011, the water consumption portion of the sewer charge shall be at a rate of $7.78 per 100 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, 2012, the rate per 100 cubic feet of water will increase to $8.64.
Effective November 1, 2013, the rate per 100 cubic feet of water will increase to $9.63.
Effective November 1, 2014, the rate per 100 cubic feet of water will increase to $10.74.
The fixed meter charge and water consumption rate portions of the sewer charge may be adjusted as early as November 1, 2013 pursuant to the findings of a new waste water rate study that the City will commission as expeditiously as possible, but no later than thirty (30) days after the passage of this ordinance; to analyze additional sewer charge distribution options, including but not limited to split sewer charge based on residential, commercial or industrial usage class. Such sewer charge adjustments shall only be made if the new sewer charge schedule retains coverage required by indentures.
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: City Manager
The City Manager states this is an ordinance regarding the waste water rates. The increase in the rates is unfortunately necessary because of a 2007 consent agreement with DEM. The City needs to borrow the funds for this project and we need the Council's consent. It's an enterprise fund you can only raise the revenue through the rates you cannot transfer those revenues and vise versa. The current rates do not cover the debt service which is in its final stage. This is about a $52 million project to meet the consent order from 2007. Previously I asked the Council to remove this item so the Budget Commission could study it further. The information in your packet goes through the history of the project and why we need the increase to the rates now. The fixed component charge you pay no matter how much you use and that is not changing. What it would do is change the volumetric rate, the more you use the more you pay to provide sufficient funding for the enterprise fund split rates? With a separation of residential vs commercial the answer is probably but it would need an in-depth study which will take months. No later than 30 days after, the City will commission a study in terms of how high the variable rate is.
Mayor Rogers states he thinks this is putting the cart before the horse the Budget Commission is coming here to do a presentation. We need to live up to the contract and are going to have to do something with the water rates before we present the scenario. We give first passage before we hear from people and if that is the case he will vote against first passage tonight for this reason.
Assistant Mayor Rose stated when are we supposed to see this presentation to Council?
The City Manager states there are two public hearings to receive comments from the public regarding going in a different direction.
Assistant Mayor Rose states he has a problem that the general public’s questions and comments should be heard first.
Councilman Conley asks that as part of the presentation he would like to see identified the percentage increases and tie that to a specific dollar increase for the median or average rate payer
The City Manager states about 11.5 and the impact on monthly charge increase is $4.49 per month average $60 per year the main reason is the consumption is always a factor that in whatever rate study you do you can't tell going out further than the 3 year max.
Assistant Mayor Rose makes a motion to defer until after the public comments, this is seconded by Councilwoman Kleyla and on a roll call vote it is unanimous.
F. Communications
1. Anthony Ferreira, 44 Brightridge Avenue (02914) requesting to address the Council regarding the budget.
Mr. Ferreira states that at a recent school committee meeting it was stated that the council was able to take care of the debt without the Budget Commission coming here. Mayor Rogers stated that is a tricky question there is the accrued deficit and the current deficit. We were about to settle the current deficit that evening and the then we were going to project out in the 5 year plan. The City Manager reiterates this in detail.
2. Freddie Rybka, 9 Cozzens Avenue (02915) requesting to address the Council regarding the budget.
Mr. Rybka states he agrees with Councilman Conley regarding contracts, he read the benefits for employees and wants to know why we can't renegotiate the water contract. The City Manager explained this is the 3rd year of a 10 year contract for operation and management it was approved in 2010 with a 10 year option to renew they might have a proposal after this if it is properly funded.
VIII. Adjournment
1. A motion to adjourn is made by Councilwoman Kleyla, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.
Approved By Council: May 1, 2012
Attest: _______________
City Clerk