CITY OF EAST PROVIDENCE
RHODE ISLAND
JOURNAL OF SPECIAL COUNCIL MEETING
November 14, 2013
Council Chambers, City Hall, 145 Taunton Avenue, East Providence, RI 02914
7:30 P.M. Open Session
Mayor Briden calls the meeting to order at 7:31PM.
A. COUNCIL MEMBERS
1. Acting City Manager Applicant Interviews with a Vote:
a. Steven T. Hartford
b. Paul Lemont
c. Paul Luba
d. Malcolm Moore
Malcolm Moore’s email to the City Council via the City Clerk thanking the Council for the honor to be included for consideration as Interim City Manager. At this time, he feels that he could not dedicate enough time to properly perform the duties of both positions, finance Director and City Manager, along with being the project manager for the conversion of the water billing system this month, the conversion of the waste water billing system next month, and the conversion of the HR/Payroll system the following month. Except for these additional duties, he knows he would have been able to perform both positions in the short term as he performed both positions in West Warwick the last year he was there.
Steven Hartford discussed his cover letter and resume and accomplishments.
He noted he is conservative with fiscal management. He works with the community, superintendent and town council. He was the first in the State of RI to create a consolidated finance model. There is one director for both town and school. He was asked to present that model to the East Providence Budget Commission in the summer of 2012. He is a reformer and looked for real savings in Westerly. He was also recognized for his fiscal budget management by Judge Flanders to assist by serving as Chair of the Wyatt Federal Detention Center in Central Falls which at one time was a significant source of revenue for the city but had turned into a looser for that city. During that time working with the city and the judge they restructured the organization at the Wyatt and are now in operating the black and on their way to becoming a revenue generator. This year he was recognized by peers across the state to be president of the city and town managers board league and on the board of coalition of community leaders a bipartisan group championing issues at the State House that are important to city and towns inside and outside of Westerly.
Mr. Hartford states that he has ability to serve today and begin tomorrow and he is a good candidate. He has not decided yet to apply for the permanent position and the Council still needs to have a city manager search and an open process. He would fill the spot for 2-3 months possibly as he has job possibilities in the future. He is a long standing member in a law firm. He is available to help and take the load off of the Council’s shoulders as they search for a permanent City Manager.
Councilwoman Capobianco asked why he left Westerly.
Mr. Hartford responded that he served almost 5 years very successfully under 2 councils prior. However, one individual wanted a change at the top and ultimately due to the support of change from the council it was better for his career to leave as the support from the majority of the council had dwindled so he accepted rather than to get into a dispute.
Councilwoman Rossi asked how large the population of Westerly was.
Mr. Hartford responded 25,000 thousand year round and it balloons to 50,000 in season. The area has a lot of 2nd home owners and tourists. There are about 3 thousand children in the system and the annual operative budget is around $100 million the size of the government is roughly half that of East Providence.
Mayor Rose stated that he had an excellent resume and looking at the information provided he has indicated that during his tenure in Westerly the bond rating increased.
Mr. Hartford stated that this was correct and what contributed to that was careful fiscal management and a determination to build a rainy day surplus fund. For 5 years in his tenure they completed the budget year with a surplus nearly a million dollars in one year. By careful management we built our unreserved fund from $6 million to $10 million and didn't expend any money on capital improvements except to the extent that the prior year’s surplus exceeded 10 percent of the annual operating fund which it did. We have a super finance director and president of the town council and chairman of the school committee. We made adjustments on a 3 month basis and ended up in a positive performance at the end of the budget year. State aid to Westerly went down $3 million over 2 years yet we were still able to complete the year in a budget surplus of $1 million. During Hurricane Sandy we recovered unreimbursed FEMA funds and still finished in the black by about $300,000. You must have a high level of communication when you consolidate and you need to be able to accept and to seed some authority to the either side for the greater good of the tax payer. We consolidated in 5 other support areas before we got to finance director.
Mayor Rose stated that regardless of the decision made today he was an excellent candidate and they hope that he will apply for the permanent position when it is posted.
Paul Lemont reviewed his resume and stated he is an East Providence resident and has been here all his life hunting, fishing, trapping and enjoying life in the City of East Providence. He attended East Providence High School with Coach Bill Stringfellow. He noted that he served as City Manager of East Providence for 14 years and served as the Seekonk Town Manager. He is a partner in Manchester and Lemont. The reason he has applied for this position is that when he saw the State was taking over he was incensed and embarrassed. Something went wrong and we were not watching what was going on in the City.
In his 14 years as City Manager the City never had a deficit but had a surplus every year and one of the top bond ratings in the State. East Providence was three times nominated for All American City status and this is still a record in the country. He wants to try to make the City a fun place to work again and it was a good place, to make people proud of this City. That means civility, adding every time he comes in he doesn’t see the smiling faces and he hears the gripes. It’s a great city and it deserves better than we have given it. He has the ability to come in and take over and take charge. The EPPD and EPFD issues are looming under the surface so he is desirous of coming back and straightening out an embarrassing situation for the City. He added that he doesn’t know why there wasn't an outcry in the City for the State coming in telling us what to do. What they did as damage has yet to be measured as a success. Slashing and cutting back does not help the City and in the long term he wants to see a growing City.
Assistant Mayor Cunha asked how he would instill this civility.
Paul Lemont responded that he would have to see when he arrived but first he would instill that there is a leader. He would have regular department head meetings and lay the groundwork to where the City is going and for the City to once again take charge of itself. The attitude that one displays and shows affects this and we are not Woonsocket or Central Falls we are much better than that it that takes time but it can be done. When I walk in the City Clerks office and see everyone jammed in there, is that really the best way? A manager keeps that stuff from happening and the record shows I can do it.
Councilwoman Rossi stated that she had received calls both for and against Mr. Lemont. She feels that her biggest concern was with regard to the pension fund and how it became unfunded.
Mr. Lemont stated it wasn't unfunded it was actually 100 percent funded. Part of his background at the Gas Company was to develop a pension plan, back then it was kept in Fleet Bank. He brought in managers who split the fund portion in stocks and bonds and they hit it right in those years, when the market was rising, there were a couple of years when the City put in a minimal amount and that is true but it was 100 percent funded. He noted that he brought in Mike Fallon and created the plan that over the next couple of years was 20 percent funded and ultimately fully funded.
Paul Luba came to the podium and spoke stating that he was flattered to be considered but he was not a candidate for a permanent position. The interim position is one where he can really help set the stage for the permanent manager to come. The City of East Providence needs to move forward, we are still stuck in what happened in the last 2 years and we really can accomplish a lot. Managers will develop goals achieving and measuring how we are doing. However this is long term, the interim is to set the stage. What happened is not good but there is a really good future for us if we listen and communicate with each other. Hopefully you find a permanent City Manager quickly. It’s important that you identify the right candidate. In the interim he believes he could help keep the City moving forward and would not take any additional pay from what he is taking now.
Mayor Rose stated that his resume at the Robert Allen Group also talks about the fact that he was responsible for 55 associates in finance by the end of his tenure there. This included operations and reporting.
Mr. Luba stated that when the market collapsed no one wanted to buy fabric and in a short period of time they became consolidated and reduced the workforce and everyone had to pitch in so he had to wear quite a few hats.
Mayor Rose noted his resume also indicates he was a supervisor.
Mr. Luba stated that this is correct he did many audits. They handled Harvard and a few other schools. No matter who becomes your City Manager these are worthwhile goals to pursue and he would do his best to help them achieve these goals and move the City forward and take the role of finance advisor seriously.
Councilwoman Capobianco asked how this would affect his current position.
Mr. Luba stated he would need to abdicate it and they would fill it temporarily then when the City hires a permanent City Manager he would take the job back over.
Mayor Briden stated he has been working with Mr. Luba since September and also worked with him recently on the budget and expressed his thoughts regarding this working relationship. Mr. Luba’s resume is that he has a good professional background and he made our experience with the budget different from previous councils and enabled us to accomplish certain objectives. This was particularly true for those who met for long hours to cut the expenses and he was very effective in my opinion. He is at a level in his career where he can think creatively and wrap his arms around the whole thing with ease and what I observed was that we all gravitated to this individual. He was the new guy on the job and he was very impressive and that is why he is my pick for the interim position. We are fortunate to have a good individual and I would make a motion to appoint Mr. Luba as acting City Manager.
Councilwoman Rossi stated that on hearing from the three candidates she actually feels happy and comfortable with the solid people who are counting the beans. She heard from two other potential candidates and Mr. Hartford has excellent credentials however the city he managed is half the size. In the interim it’s twice the work. She appologized to Mr. Lemont if there is a misnomer regarding the pension she will have Director Moore and Mr. Luba double check everything. Mr. Lemont does come from the City and knows what the City needs and has done this before and she supports Mr. Lemont.
Councilman Cunha states that he thinks very highly of Mr. Luba but feels the City needs him where he is and makes a motion to appoint Mr. Lemont as Interim City Manager, Assistant Mayor Rose seconds the motion and on a roll call vote the motion passes 4-1 with Mayor Briden voting Nay.
Mayor Briden thanks all the candidates and notes the City is both excellent and fortunate to have such good choices this evening.
Councilwoman Rossi states the City is fortunate that both Paul Luba and Malcolm Moore had spent hours with the Council working on the budget and it’s been excellent to work with both of them and she doesn’t want to lose that.
Solicitor Chapman stated that procedurally salaries, terms and a hiring resolution need to be done to make it effective.
Councilwoman Rossi stated that Mr. Lemont seems pretty gung ho to get here and can that be worked out later? She invited Mr. Lemont to join the Council at the dais.
Mr. Lemont stated that he doesn’t need benefits and there is no need to put him into the retirement plan. He’ll start Monday morning.
Assistant Mayor Rose stated the base pay $125,000 can be placed in the hiring resolution.
Mr. Lemont agreed. He noted that he would also still like to remain as Vice Chair on CRMC and a Sr. Major in the Providence Marine Corp Artillery but that there is no financial gain for him in either.
Mayor Briden asked if there was a motion to go with the base that exists presently at $125,000 to be placed in a hiring resolution for Tuesday night and to be effective Tuesday.
Councilwoman Rossi asked that the Law Department put the hiring resolution together retro to Monday so that he could and hit the ground running.
A motion for a Hiring Resolution to be drafted by the Law Department retro to Monday is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous.
A motion to Adjourn is made by Assistant Mayor Rose, seconded by Councilwoman Rossi and on a roll call vote it is unanimous.