I.                   EXECUTIVE SESSION

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

A.    New Claims

1.      Steve Martins

2.      George & Tamara Primmer

B.     Disposition of City Owned Property

1.      260 Dover Avenue

Map 408, Block 2, Parcel 2

2.      33 Hoppin Avenue, Map 411, Block 17, Parcel 1

80 Burnside Avenue, Map 411, Block 17, Parcel 5

II.                CALL TO ORDER

Mayor Briden calls the meeting to order at 7:56PM

III.             SALUTE TO THE FLAG

IV.             TO APPROVE THE CONSENT CALENDAR

All items under “CONSENT CALENDAR” are considered to be of a routine and noncontroversial nature by the City Council and will be enacted by one motion.  There will be no separate discussion on these items unless a Council member so requests, in which event, the item will be removed from the “CONSENT CALENDAR” and will be considered in its normal sequence on the docket.

A.  Council Journals

1.   Regular Council Meeting September 16, 2014

2.   Executive Session August 19, 2014

3.   Executive Session September 2, 2014

B.  Alcoholic Beverage

V.                PUBLIC COMMENT

All persons wishing to make public comment shall sign a public comment sheet stating their name, address, and the subject of their comments.  Said comments should pertain to topics listed on the public Council docket.  Said public comment sheet shall be available on a desk at the entrance of the City Hall Chambers no later than forty-five (45) minutes before the call to order of any regularly scheduled council meeting and shall be delivered to the presiding officer no earlier than five (5) minutes before the call to order of the meeting.

A.    Wesley Moore – A grace period for property taxes

B.     Ken Goucher – Letter from City Manager (Mr. Goucher opts to speak under his Communication later on the docket)

C.     Laura McNamara, EP Chamber of Commerce – City Budget

D.    Phil Tirrell – City Budget

E.     Candy Seel – Disposition of 260 Dover Avenue

F.      Freddie Rybka – Offset tangibles

G.    David Silva – Sidewalk ADA

VI.             PROCLAMATIONS AND PRESENTATIONS

VII.          APPOINTMENTS

A.    Traffic Control (by Councilwoman Rossi)

Gary Conrad, Jr., 176 Walnut Street (02914)

A motion to approve the Appointment is made by Councilwoman Rossi, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

B.     Beautification Commission (by Councilwoman Rossi)

Richard Lawson 19 Plum Road (02915)

A motion to approve the Appointment is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous. 

C.     Beautification Commission (by Councilwoman Rossi)

Courtney Rook-Reposa, 219 Narragansett Avenue (02915)

A motion to approve the Appointment is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous. 

D.    Beautification Commission (by Councilwoman Capobianco)

Christine Pereira, 13 Berkeley Street (02914)

A motion to approve the Appointment is made by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

E.     Beautification Commission (by Councilwoman Capobianco)

Joe Rosario, 15 Henry Street (02914)

A motion to approve the Appointment is made by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

VIII.       LICENSES REQUIRING PUBLIC HEARING

Licenses are granted subject to all required approvals from State and City departments.

IX.             LICENSES NOT REQUIRING PUBLIC HEARING

Licenses are granted subject to all required approvals from State and City departments.

X.                PUBLIC HEARING - ORDINANCES FINAL PASSAGE

A.    An ordinance regarding a stop sign on Bell Avenue northbound and southbound traffic at Cove Street.

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.  Subsection (b) of Sec. 18-269 entitled “Stop and yield intersections designated; when stops required.” is amended by adding thereto the following:

Bell Avenue (northbound and southbound traffic) at Cove Street

SECTION II.  This ordinance shall take effect upon second passage and all ordinances and parts of ordinances inconsistent herewith are hereby repealed.

Requested by:  Councilwoman Rossi

A motion to approve the Ordinance for final passage is made by Councilwoman Rossi, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

XI.             PUBLIC HEARING

A.    ORDINANCE OF THE COUNCIL OF THE CITY OF EAST PROVIDENCE APPROPRIATING $172,040,750 FOR THE SUPPORT OF THE CITY GOVERNMENT FOR THE FISCAL YEAR ENDING OCTOBER 31, 2015

A motion to dispense with the reading of the ordinance is made by Councilwoman Rossi, seconded by Assistant Mayor Rose and on a roll call vote it is unanimous. 

SECTION I. The general fund receipts for the fiscal year ending October 31, 2015 have been established to amount to $172,040,750 made up as follows:

SECTION II. To defray the expenses of the City of East Providence for the fiscal year commencing November 1, 2014 and ending October 31, 2015, 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 $74,844,650 for the support of the public schools for the City of East Providence fiscal year 2014-2015, shall be increased or decreased to conform with the actual amounts received from such sources during the fiscal year 2014-2015 except the appropriation of property tax.

SECTION V. The purpose of this ordinance is to adopt the Budget for the fiscal year 2014-2015 which begins November 1, 2014 and ends October 31, 2015 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 Council of the City of East Providence; 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.

Advertised:  East Providence Post September 25, 2014

Mayor Briden stated the Council would discuss the budget then open up the discussion to the public for comment.  At which point, the Council would review and amend the budget with the goal of not including a tax increase.  He added this is a good objective and one that is attainable. The Mayor also stated that he met with the City Manager, the Finance Director and the Financial Advisor and after reviewing the budget, they too feel this is an attainable goal this year.  He also acknowledged the hard work of the Administration and Councilwoman Rossi who put together a list of possible cuts and it is a very good list and the Council greatly appreciates that effort. The Council wants to work with the Administration and the City Manager and wants a review of the proposed cuts to make sure the City works well in an operational sense. It is an important balance and the Mayor suggested that if the City Manager would meet with the Finance Director and the Fiscal Advisor for 15 - 20 minutes right now and then come back in with cuts which would allow for no tax increase relative to this budget this would be a good starting point.  The Council will recess and then come back and listen to their suggestions and then to the public.  All Council members were in favor of this recess.  

At 8:40 the open session resumes from recess.

The City Manager states this is his 15th budget for East Providence and thanked members of the Council, Mr. Luba and Mr. Moore as well as Department Heads. The City Manager reviewed the budget process up to this point. This year the budget which he presented to the Council called for a half a percentage point for a tax increase and a $10,000 tangible tax exemption. He noted they have tried to forge ahead to help get the City back on track.  He reviewed the recent two step upgrade in the City’s Bond Rating. Adding that it shows what can be done when people put their nose to grindstone. The City has turned the corner and that is why he wanted a slight tax increase to keep the momentum going as well as a $10,000 reduction in the tangible tax which businesses pay. He adds that however, he has heard the Mayor and the Council as well as the tax payers that the tax payers need a break and if we do without this tax increase for one year we will feel a little better about it next year. He concluded by saying there is no way around it next year however, there will need to be a tax increase. Councilwoman Rossi met with Director Moore and Financial Advisor Luba and he does not agree with some of the proposed cuts.  Departments need the right personnel to do the right things.  After breaking to look at the budget it is possible to do a 0% tax increase.  This has been the only time in 14 years that this has happened.  To offset it is recommended that the tangibles be reduced from $10,000 to $5,000.  After their previous meeting with Councilwoman Rossi her suggested cut of taking $200,000 out of TANS would work and then the City would take $50,000 out of the Tax Assessor’s revaluation fund.

Mayor Briden requested both Finance Director Moore and Financial Advisor Luba come to the podium. 

Mr. Luba spoke and stated that next year will be unique for East Providence and that a lot of things have fallen in line favorably. A few Council’s ago it was decided to restructure the debt and the City cashed in a lot of high interest bonds and re-issued them with lower interest rates. The end effect is saving a million dollars and the Council voted to take the entire million next year. Essentially, expenses go down by a million for this one time. What the City Manager has stated is true, the taxes next year would normally be expected to go up about a million dollars.  There are contracts with unions coming due and they have fixed raises and will add $500,000-$600,000 a year with health care typically going up and pensions going up along with all the other items such as electricity and fuel and that will get the City to a million dollars.  This equates to a 1-2 point tax increase next time. Where the City eases back is the Council’s choice.  If there is no property tax next year, keep in mind the City has the 5th highest tangible tax on businesses in the State. The school budget is receiving 2 million dollars more next year.  This is comprised of $800,000 from the City and $1.2 million from the State.  After reviewing the school budget, it is a very fiscally responsible and conservative budget.  With expenses in capital items and new hires in crucial places, the School is being managed responsibly.  The City's budget is a little over $69 million vs $68 million last year.  The one change is a re-class by leaving some $700,000 of expenses in departments where last year it had been taken, so it really isn't a true increase this year.  There is capital money set aside for road and building improvements.

Mayor Briden asked that in Mr. Luba’s opinion, if the Council were to have no tax increase and have the tangible exemption at $5,000 and cut $250,000 from the budget, would that be a responsible way to go?

Mr. Luba stated yes he thought so however, one thing the Council will have to be careful of is if they set the exemption at $10,000 it is hard to change it later. If the Council sets it at a more moderate amount they can go up next year. It may be more prudent to start off a little lower.

It’s been a good couple of years throughout the City and the East Providence High School has come a long way.   Money has been moved into Capital from $0 to $600,000 and the School is hoping to get to a million dollars.  The more they put in the more they get back.  The road construction is at $2 million this year and this was less than 0 two years ago.  There is now over $10 million in the Rainy Day Fund and the rest goes into Capital. Next year will be a tougher year if the Council doesn’t raise taxes they will have to reduce services. It’s a judgment call, .5% on the average house is $22 a year.  If people voted on a tax increase they would say they don't want it.

Assistant Mayor Rose stated that looking at the budget he understands the proposals and the City needs to go in this direction for both the businesses and the taxpayers. Every day is a step forward. Each year it shows through the budget but the Council has to concentrate over the next year to bring in businesses. The tax stabilization ordinance gives business a chance to expand and we need to work on bringing in more businesses to increase the revenues.

Councilwoman Rossi thanked Director Moore and Mr. Luba saying that they were a great tag team and people can’t imagine all the time they have spent crunching numbers and she thanks them for their time. 

Mr. Luba stated that they spent 7 hours with Councilwoman Rossi directly on the budget.  Every time someone is looking at it there are things that he and Director Moore can miss.  However, this year there is much less low hanging fruit than last year which means the City is running a tighter ship.

Councilwoman Rossi stated they went line by line and found $502,000 in cuts, a zero percent tax increase and held the $10,000 in tangible tax reductions.  She added that it is her opinion that the City needs a solid economic development plan to stabilize taxes. If they lower the tangible taxes then they are letting businesses know they want their business. Pawtucket and Seekonk are doing a great job at this. Councilwoman Rossi asked what businesses would be affected by a $5,000 reduction and what businesses would be affected by a $10,000 reduction.

Director Moore responded that all will be affected. Over 1500 bills are sent out with a $10,000 decrease, 48% of businesses would not receive bills.

Councilwoman Rossi stated if a business is not going to get a tax bill wouldn't they open their businesses in East Providence? More businesses mean more jobs and more disposable income and all of this will steer rather than drag down the City. She added that the cuts she is recommending are pretty modest and she didn't scalp anybody.

Assistant Mayor Rose stated that he doesn’t want to get to next year and see the City doesn’t have the ability to keep the $10,000 cut and have to take it away he feels a gradual increase in the tangible tax cut would be the better way to go, knowing that the City can sustain it is better.

Councilwoman Rossi stated more business coming in would stabilize the tax base.  She added that she took great pains to achieve all of the goals and that everybody got hit a little bit with the cuts.  While the Administration did a very good job with the budget and it is very prudent there is stuff the Council can eliminate.

The City Manager stated it is essential there be part time clerical help in the Planning Department to get the work out. The same thing is true in the Law Department. Not everyone appreciates this but they do a lot of work and he feels as though he has given the Council a very responsible budget.  There is no way to predict to the dime where it’s going to end up. By end of year we should have a surplus but if you cut this out that gap will get closer and closer. We can't afford the $10,000 cut in tangible tax this year, we can afford to put in the $5,000 in tangible cuts and see what happens. Pawtucket isn't doing any better. We are. Because of all that has happened we have the potential to move. There is a happy balance in this budget. Adding that he wanted the tax increase but with the $5,000 in the tangible tax reduction everyone gets a piece of something.

Assistant Mayor Rose stated that Pawtucket was looking to mimic East Providence’s tax stabilization.

Councilwoman Rossi stated yes that is great but these are nominal cuts.

Assistant Mayor Rose said the Central Garage, Police and Fire have been cut as far as they can.

The City Manager stated the Budget Commission and a previous City Manager decimated the Police Department to the point they are working doubles all the time.  The City has to add personnel.  The City has added 16 fire fighters and still is not up to where it should be.  Police have been added and still is not up to where it should be. The Police Union came off of a 0% increase for 2 years and we don't know where the negotiations are going to end up. There has to be money somewhere to maneuver to make this balance. If the Council cuts to the bone I can't do that.  Part of being a manager is finding ways to balance a budget.

Councilwoman Rossi stated that $28,000 for unreimbursed medical is not needed. She also stated that Self help receives money from CDBG funds.

The City Manager stated that he put the budget together as what is best for the City and he sees these cuts as nickel and dimmed and not giving them any leeway.

Councilwoman Rossi asked if the Council needed to double salaries.

The City Manager replied yes.

Mayor Briden opens up the Public Hearing.

Ken Goucher  - Against the .5% tax increase.

Phil Tirrel, 168 Becker Avenue – Notes that he is a member of the East Providence Chamber of Commerce and the incoming Chair.  They are always looking for small businesses to come and to stay in East Providence.  What the Council is doing for relief both on the property tax and the tangible tax is good and regarding the tangibles they would be willing to compromise as both are important reliefs. They would hate to see the $10,000 be taken away next year because the City couldn’t afford it.  He does sincerely believe that if we have this exemption new businesses will look at East Providence as a place to come and stay.

Dan Landry, 10 Larchmere Drive thanked Councilwoman Rossi for what she does for the taxpayers. He looked at the overtime for police and fire and the number of employees. The totals are very similar.

The Fire Chief came to the podium and explained the family medical leave act.  They can take up to 13 weeks and the City has no control over this.  The fire fighters working 4 days straight without a break is problematic.  The Labor Department is worried someone could get killed.  They have had a high number of injuries. The only way to save on overtime is to keep the numbers up. Their intent was to go over strength for when someone is out sick or on injury or vacation.  

Councilwoman Rossi stated that in total the cuts to fire where only $25,000.

The public hearing is closed. 

Councilwoman Capobianco called Mr. Luba to the podium and asked if East Providence was the first to offer any tax reduction in tangibles and if he was in favor of the $5,000 reduction to be able to sustain instead of a higher amount.

Mr. Luba stated for the reasons he has mentioned yes.  He is fine with $10,000 but if something were to happen, this number is harder to sustain and the City doesn’t want to drop anything.  It’s easier to increase than to decrease.

Assistant Mayor Rose stated that as he previously noted the City is going in the right direction and it would be better to start off with a $5,000 tangible tax reduction.  At first he was opposed to this but now after hearing from everyone and discussing the issues he feels the City can look to increase this in the future and at this time, with these extended cuts, which were made by the Administration, he would make the following motion:

A motion is made to approve the $250,000 is cuts , which is the $200,000 in TANS and the $50,000 in the Assessor’s reserve fund for the revaluations and to have a $5,000 tax exemption in tangibles with a 0% tax increase, by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

XII.          NEW BUSINESS

A.    City Managers Report (by Acting City Manager, Paul Lemont)

1.      Roofing Issues – Odd Fellows Home, Pierce Field

The City Manager provided a roofing update.  The City completed the temporary repairs to the Odd Fellows Home. They are working on the small leaks at Pierce Field.  They are still waiting for a price regarding the roof, this should be in shortly. 

2.      Silver Spring Progress Update

Regarding the Silver Spring progress update, the City Manager called Wayne Barnes from the Planning Department to the podium.  The City Manager stated that they met with Assistant Mayor Rose. 

Councilwoman Capobianco noted that she has been also working on this for about 2 years.

Mr. Barnes stated this is a RI DEM funded project grant. A City match was required and it is a 50/50 match. The total project is $150,000 with a City match of $75,000. At this point, because this is a grant funded project, it is not a neighborhood build.  There are options for neighborhood participation such as landscaping but as far as the scope of work to spend the grant money on, it is a City project and will be contracted out.  The contract process is well underway. Contractors prequalified and were approved on September 2^nd.  The bidding will be sent out this week by the Engineering Department. 

Councilwoman Capobianco stated she received grant money for the basketball courts but the extension was denied however they are still working on this.

Mr. Barnes stated there have been neighborhood meetings to involve everyone

The City Manager requests to speak on a personal privilege to congratulate Director of Planning, Jeanne Boyle on receiving the Rhode Island Public Expenditure Council’s (RIPEC) Joseph Goodrich Award for Municipal Employees.

B.     Reports of Other City Officials

1.      Claims Committee Report (by City Solicitor Timothy Chapman)

Pursuant to R.I.G.L. § 42-46-5(a)(2), a motion is made by Councilman Rose and seconded by Councilwoman Rossi to convene in closed session for the purposes of discussing claims & litigation.  Upon a roll call vote:  Mayor Briden – Aye, Councilwoman Capobianco – Aye, Councilman Cunha - Absent, Councilman Rose – Aye, Councilwoman Rossi – Aye, the motion is approved 4-0. 

                                    EAST PROVIDENCE CLAIMS COMMITTEE

                                              CLAIMS & LITIGATION REPORT

                              TUESDAY, OCTOBER 7, 2014; ROOM 101; 7:00 P.M.

====================================================================

                                                                 NEW CLAIMS

STEVE MARTINS                                                                                                               $498.94

RM No. 14-072, Claim No. 14-050

Claim for reimbursement of expenses incurred and property damage sustained as a result of a water leak at the meter.  See recommendation of the Director of Public Works.

Motion by:  Councilwoman Rossi                              Seconded by:  Councilwoman Capobianco

Motion:  Approve the claim in the amount of $498.94.

GEORGE & TAMARA PRIMMER                                                                                 $5,685.00

RM No. 14-073, Claim No. 14-051

Claim for reimbursement of expenses incurred and property damage sustained as a result of a sewer backup.  Recommend referral to the insurance carrier.

Motion by:  Councilwoman Rossi                              Seconded by:  Councilwoman Capobianco

Motion:  Refer the claim to the insurance carrier.

A motion to approve the Claims Committee Report is made by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

C.    Council Members

1.      Community Gardens – Location and Funding (by Assistant Mayor Rose)

Assistant Mayor Rose requested this item be deferred. 

2.      Updates on the Website and IT Position (by Assistant Mayor Rose)

Assistant Mayor Rose requested this item be deferred. 

XIII.       ADJOURNMENT

A motion to Adjourn at 10:02PM is made by Assistant Mayor Rose, seconded by Councilwoman Capobianco and on a roll call vote it is unanimous. 

Approved By Council:  November 5, 2014

Attest:  _________________

                    City Clerk