I.          CALL TO ORDER

Mayor Briden calls the meeting to order at 7:14PM.

II.        SALUTE TO THE FLAG

III.       WATER AND SEWER BILLS

The City Manager spoke stating the City will provide an explanation regarding water and wastewater.  He requested everyone in attendance keep in mind both units are separate enterprise funds and are not funded by the tax payers per se.  These funds have to balance by the end of the year.  If the City is billed, for example, a million dollars then the City has to bill a million dollars too.  The City does not get rich collecting this money and have to bring in the amount needed to pay off the water bills they receive.  He has been going over the bills with the Finance Director and the Financial Advisor and the Public Works Director and staff , they have gone over them with a fine tooth comb to find some areas to make things easier for residents.   While they have found some items, this all has to be balanced as the City can't go into a deficit.  He asked that people give the City the opportunity to explain and then the audience and Council can ask questions. Afterwards anyone with a question or problem can come in and see him or call him anytime.  He provided a background on how the City got into the problems it did with the wastewater treatment plant and the order it was under by the EPA. The cost of the project was $52 million and paying for the project ie:  paying for the bonds is what is driving the cost up as the payments kick in the price goes up.   The Narragansett Bay Commission has an ongoing project costing $600 million.  He added that until the City started the new and now properly functioning plant it had been ignored for a long time and was in very bad shape and the City was being fined daily for not repairing it.

Director Coutu provided a power point presentation.

The Council asked questions following the presentation.

Assistant Mayor Rose asked about the length of time left on the bonds, the cost of Narragansett Bay Commission as opposed to United Water. 

Director Coutu spoke to this and explained about the variable rates for ratepayers so that someone who doesn’t use a lot of water isn’t penalized and compared this to the flat rate which Narragansett Bay Commission uses.  There was also discussion on how the rate increases the more water used.

Councilman Cunha asked about the bond and the amortization and if it was possible to extend this or refinance now that the City’s bond rating is higher.   

It was explained by Director Coutu that the City sets the water rates to match the bond payments. 

Kevin Chandler Vice President of United Water was present and came forward to answer questions.

Both Assistant Mayor Rose and Councilman Cunha asked the City Manager to look at whether or not the bond could be extended for a longer period and/or refinanced.  They also requested the Solicitor review the contract with United Water.

Financial Advisor Luba discussed the issues which might be problematic such as the timing of the fiscal year and the fact that due to this timing the City has to borrow in anticipation of taxes and this issue stops them from being able to invest long term.

Assistant Mayor Rose and Councilwoman Rossi requested the City Manager explore a monthly period and a grace period.

The City Manager stated they could make the change over but it is complicated and not something that can happen overnight.  He listed reasons why this would take time to implement. 

Councilman Cunha requested a report from 2009 as to how the funds were dispersed.

Mayor Briden summarized that it would appear the Council is asking for research regarding monthly billing, the refinancing of the bonds and lower payments to adjust the rates downward as well as a review of an audit report on how the funds are dispersed. 

Councilwoman Rossi stated if anyone has a billing problem they should bring their bill to the Water Department for review and adjustment.

Jim Marvel agreed with the Council and stated that rate studies should be done every two years.

Assistant Mayor Rose stated he would like the City Manager to look into a 12 month billing cycle, look at how to better balance the rates and look into the 30 year bond option. 

Councilman Cunha added or a 20 year option but at a lower rate.

Mayor Briden asked that half of the current bill be due on December 10^th and other half to be due on January 5^th.

The City Manager agreed and told resident to contact them as they we will work with residents.   

Mayor Briden suggested the following motion:

Half of the current bill be due on December 10^th and other half to be due on January 5^th and to direct the City Manager to implement monthly billing and to ask that the Finance Director, Financial Advisor and the Director of Public Works with the Water Department review refinancing the bonds and that they review pertinent sections of the audit on where the money is going and to review regionalization and discuss this with the State Delegation and to direct the Legal Department to look at the water rate bill and adjustments as an ordinance using one in Indiana as a starting point and to conduct a rate study. 

Assistant Mayor Rose makes this motion and Councilwoman Capobianco seconds the motion and on a roll call vote it is unanimous. 

Councilman Cunha provided the information in Portuguese. 

He then thanked Mayor Briden and Councilwoman Rossi for their service to the citizens of East Providence and noted that he enjoyed working with them.

IV.       NEW BUSINESS

A.    Council Members

1.      Council Meeting December 2, 2014 (by Assistant Mayor Rose)

A motion by Assistant Mayor Rose for unanimous consent to discuss this item, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

A motion to move the Council meeting date of December 2, 2014 to Wednesday, December 10, 2014 is made by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

V.        ADJOURNMENT

A motion to adjourn at 9:35PM is made by Councilwoman Capobianco, seconded by Councilman Cunha and on a roll call vote it is unanimous.

Approved By Council:  December 16, 2014

Attest:  _______________

                 City Clerk