CITY OF EAST PROVIDENCE

RHODE ISLAND

JOURNAL SPECIAL COUNCIL MEETING

WORK SESSION OF CITY COUNCIL

August 29, 2016

Council Chambers, City Hall, 145 Taunton Avenue, East Providence, RI 02914

6:30 P.M. Open Session

 

*** Note Councilman Faria and Councilwoman Sousa Absent

 

I.                   CALL TO ORDER

 

Mayor Briden calls the meeting to order at 6:47PM

 

II.                SALUTE TO THE FLAG

 

III.             WORK SESSION

 

A.     Review and Discussion of the FY 2017-2018 Capital Budget

 

Acting City Manager Parella calls Wayne Barnes to the podium to provide an overview of the process.  Mr. Barnes explains that all department heads are invited to include their division heads for the anticipated 5 years purchases and projects.  FY2019 begins the first year for this go around.  Requests are prioritized by departments or divisions.  Some send this priority by year.  A deadline is put on each.  A spreadsheet is created.  The Planning Board and the Planning Department review and the product is then brought to the City Manager, Finance Director and Financial Advisor and they take a look at all projects and compile all the narratives and knowing what the outlay will be they formulate a list of projects with the goal of getting up to the $4 million. Wayne notes that since he has been here, the largest amount ever in the Capital Budget was $1.5 million and some years it was actually zero.   This year there is a lot of opportunity to really make a dent in these projects.  These go back to planning department and they put together an advisory memo for the planning board which is done by Charter.  They do this for the City Manager and then it goes before the planning board and they make their recommendations to the City Council and that is the document the Council has in their hands today. 

 

Paul Luba is called to the podium to answer the question as to how they arrived at the $4 million.  There were two components.  The first was the requirement to put revenues for school and city aide to a restrictive reserve fund until fully funded and at the point of fully funded, anything over this goes into a capital reserve fund and that entire 1% goes into the capital fund.  The second component is the synch fund $2.3 million of that fund is in there and adding those both together gets to around $4 million.

 

Assistant Mayor Britto asks about the reserve account and what is the exact total at this point.

 

Mr. Luba responds it is around $15 million however next year it will change into restricted and unrestricted accounts and the capital reserve is based on a lesser amount of taxes 1.2-1.3 next year and eventually the synch fund will go into debt payments for the school.  So that this year and next year may be the only two years with that substantial amount.

 

Councilman Botelho states at the last meeting they discussed the importance of forecasting.  They have the 20 year comprehensive plan and could he speak more on that. 

 

Mr. Luba states that is something different and the city is required to put a 5-10 year comprehensive plan together and present this to the council and have this approved and adds the planning department could explain better than he on that matter.  The financial forecast takes considerably less time.

 

Councilman Botelho states in part of the 5 year plan it talks about Taunton Avenue and Pawtucket Avenue sewers and wants to know if sewers are paid by the sewer use fee why are they listed. 

 

Director Coutu comes to the podium and explains that if they were to move forward it would get funded through the enterprise fund.  The city is almost 100% sewered with pockets on these two streets.  There is no urgency and they always leave them in the plan and other priorities usually take precedence.  For planning purposes going forward they plan for the rates to include those projects.   Next year they would have to have a rate analysis to cover those new sewers.  They have it listed as work which needs to get done or looked at.

 

Councilman Botelho notes that water supply issues are going to become a big issue and that there has been some discussion about the pipeline.

 

Director Coutu states yes and that these pipelines were put in during the mid-1960s.   

 

Councilman Botelho states that a tie in to Bristol County Water for emergencies was included in the 5 year plan and it should not be a surprise if it becomes urgent due to the age. 

 

Director Coutu states yes the water supply is a high issue and the internal system had to be resolved but the cross bay pipeline is still very important.

 

Councilman Botelho notes this year he is very happy as there is plenty of information not like last year.  He notes it is really good to see the future priorities lined up here as well.  He asks the City Manager about the request for a fence around the city hall parking lot.  

 

Acting City Manager Parella states it is a new line item as there is an emphasis on security and for this specific fiscal year shutters on the Senior Center for example are included as it is a storm shelter and should have those.  They created the line item specifically for public safety.  There is a huge concern for a long time due to a lot of foot traffic in the area and staff leave late particularly females and specifically the traffic from the north east end of the building utilizing this all day as a cut through.  He feels it is a safety issue.  It is not going to restrict it is going to direct the traffic and would look much like the fence at Providence Country Day School.  The northeast corner of the City Hall property along the sidewalk is a cut through heading north to south.  This would force the traffic to stay along the building and not walk through the parking lot. 

 

Councilman Botelho states he thought the separate line item was a good idea in this day and age especially.   Over half the capital fund is vehicles and some people think it’s a lot but it is not and it is not from the EPPD due to their Google monies.  Last year they cut out for roads and now they are a year behind and replacing these vehicles is probably a good idea now.

 

Acting City Manager Parella states this money in the line item is specified as they talked about better surveillance many times in council minutes, regarding parks, and the carousel is a huge concern and with this line item they will set aside money to do this.   If they opted not to do the access, a control farb system internally should be installed also film on the glass in places like the city clerk office, the city manager office etc…the school department is purchasing this item.  Basically, a person can't get through it as it has a fine mesh in it.  These items are used for active shooter concerns and is short money.

 

Mayor Briden calls Paul Luba to the podium.  He asks about the total amount in the synch fund which is $13.4 and notes that they had designated $10 million for roads and that there is a $3.4 million balance which is kind of unaccounted for.   It was part of the pro formal analysis relative to the school bond debt service but the balance is yet to be determined.

 

Mr. Luba states that is right it is a surplus which doesn't have a home.  Unlike prior years they were saving the $2.3 million and increasing that synch account.  This year they are spending the $2.3million and last year they did roads and he understands the rationale that they need to do them.  He knows as they go forward with the new high school there is not a lot available to work with. 

 

Mayor Briden states he thinks that in order to really evaluate he really needs to have the budget as a whole to determine what they really can afford, what they need and what they can afford and they may need to forgo something to make the overall package affordable.  It helps and it's a good start but he needs to see this as part of an overall budget.  If there is a tax increase of say 3% they don't know yet then they will have to make decisions and judgement calls.

 

Assistant Mayor Britto notes for the next two years they would have $3.4 million remaining in the synch fund and they would continue to put money in that fund at the rate that they are for the next two years.

 

Mr. Luba states they are putting money in the capital fund not the synch fund this year.   The recommendation is to put it into additional capital, not roads, and adds that next year they can pretty much do what they want but they have to think what are the odds of synchronizing with the issuance of a bond and right now it’s not that good.  Each year it was $3.7 million and now its $2.3 million. 

 

Assistant Mayor Britto states if they continue to put that $2.3 million in a fund that would be $8 million not $3.4 million in two more years.

 

Mr. Luba states the council could make a decision this year not to put it in capital and put into whatever fund they want to call it and use for something else.  The $1.5 million has to be spent on capital the $2.3 million is their call.  The Finance Director thought it would be good to put it into capital this year and to get those items out of the way that they wouldn't be able to in the future.

 

Assistant Mayor Britto states they could continue to fund and Mr. Luba responds yes.

 

Councilman Botelho states the way to look at this is unlike the previous councils who never funded reoccurring operating expenses and he doesn't know why they did that in this case once the school project begins and the city has to make those debt payments it is going to get really tight really fast that is why he is impressed with the 5 year funding.   They have a very small window of opportunity to get these funded and future councils will say they just don’t have the money.  He paid close attention to Mr. Luba’s comments on the financial forecast and it is not as rosy as today.  If they plan appropriately they should be fine.  Cutting short these capital expenses when they have the opportunity now could present not funding these for 20 years.

 

Mr. Luba agrees they could make a decision on the $1.5 million and the $2.3 million and it doesn't mean that they have a million to lower taxes it just means a balance for next year.  Anything other than capital gets put into the operating budget and it never gets back.

 

Mayor Briden asks but couldn't they for sake of analyzing have $3.4 million in a synch fund looking at the alternative.  If they were to put the $2.3 million in then they would have $5.7 million and couldn’t they use that to pay future debt service on bonds.

 

Mr. Luba states yes and lower the total amount of debt and spend it on school construction so they wouldn’t need as much. 

 

Councilman Botelho states it is not a synch fund anymore it is a budget reserve fund and mentally it can alter your frame of reference.  Mayor Briden is right they have a couple more workshops with the broader spectrum of the budget he just really liked the 5 year projections for planning it gets them back on track and get things done. 

 

Mayor Briden calls the Fire Chief to the podium and asks that he please explain the items belonging to fire in the capital budget. 

 

Chief Elmasian states that in 2002 the department changed out most of its apparatus and what was purchased didn't service the city in the fashion hoped for.  When these items are purchased all at once they have to be replaced all at once and they have to get into planning ahead.  The ladder trucks are expensive items and this past year out of 241 days they were reduced to one ladder truck and there were 6 days when they had no ladder truck in the city at all.  They try to borrow a reserve from another community and these are few and far between.  They have to certify yearly.  They have no idea if others do.  They have had union grievances due to the ladder truck constantly being out of service.  In May, he asked the two ladder captains to give a report, they could purchase new for $1.5 million - $2 million. They could purchase a demo ladder truck through the manufacturer who uses them for themselves and uses them as demos but there is no guarantee they will meet the needs of the department.  Lastly, they could purchase a used one which is the quickest fix at $150,000 but purchasing for 10-20 years they would go through a lot of repairs.  It was the opinion of the two captains the best option was a new ladder truck.  The longer it is put off to replace one it is getting closer to replacing the other one.  Then the city is stuck doing two at once.  The vehicles are constantly being repaired at the city garage and according to them they will need more personnel there just in the repairs needed on a regular basis.   In the budget there is a request for a new rescue.   They need to get out of the culture of waiting so long to purchase and would like to do so every three years, they may be able to go as far as every five years but  once they get eight years out then they repurpose to another use and utility or give them to the city and repurpose.

 

Assistant Mayor Britto asks why not buy the demo.

 

Chief Elmasian states he thinks it's time to purchase a ladder tower.  The right vehicles would be to have a ladder tower at one end of the city and in Riverside a straight ladder a little less costly.

 

Assistant Mayor Britto asks what the cost is of the demo.

 

Chief Elmasian states there are four manufacturers and it would be $850,000-$1 million and it is a straight ladder with no ladder tower and that would be the optimal vehicle. 

 

Councilman Botelho asks how often a call for a ladder truck comes in. 

 

Chief Elmasian states that a still alarm, a local alarm, a municipal fire alarm and any call for fire or smoke in the building or accident on the highway calls for ladder trucks.

 

Councilman Botelho states what he is trying to understand and understand the importance of is that it doesn't seem like the apparatus gets used that much.  

 

Chief Elmasian states it is for building fires as it's a means of egress off of a flat roof if things get sour they have two options to get off that roof.

 

Councilman Botelho asks if they get as much use as engines.

 

Chief Elmasian states that engines are 67% of use.  They have not been replacing ladders at the same rate as engines.  They have a 20-25 year of use cap and the importance of rescue trucks speaks for itself.  Changing the culture in which the city purchases every 4 years is important.  They tried for a grant for half a million for all new monitors and they will put in again next year for this grant.  The air packs are going on 10 years old and they wrote a grant two chiefs ago and it was never followed through and they will write this grant again.  They are writing a grant to replace the ramp at station two in Riverside and roof work in Rumford and Riverside needs a fuel tank. 

 

Councilman Botelho asks if he is satisfied that these are the top 3 items in the capital and that these are his priority and Chief Elmasian states they are.  He adds that he has more but yes he would be glad to have these.

 

Mayor Briden calls Director Coutu to the podium. 

 

Director Coutu states every year they do the bulk of work all in house particularly the snow plow operations and they need to have the right equipment.   In years past, they have gone years with no new vehicles.  Last year their vehicle request went to roads.  The fleet is aging.  It is ok on the smaller trucks side but the big trucks are real old.  What they see in the request is one large 10 wheel dump and one mid-size and one back hoe which is used on a daily basis for projects at public buildings for repairs due to aging buildings at Sweetland and DPW garage fire panel, engineering division and the recent request for significant culverts under South Broadway.  The corrugated metal pipe rusted out and has holes in it creating sink holes in the past and it is in critical condition to get done before they face a complete washout which will cost 2-3 times more money to repair.   

 

Acting City Manager Parella announces that schools will close early tomorrow due to the heat.  The High School will close at 10:30AM, the Middle Schools will close at 11:15AM and the Elementary Schools will close at Noon. 

 

It is announced that the next workshop is scheduled for September 13, 2018 and this will be a full budget workshop.

 

IV.             ADJOURNMENT

 

A motion to Adjourn at 7:55PM is made by Councilman Botelho, seconded by Assistant Mayor Britto and on a roll call vote it is unanimous 3-0 with Councilman Faria and Councilwoman Sousa Absent. 

 

Approved By Council:  September 4, 2018

Attest:  _______________

            City Clerk