| James T. Higgins, At Large | |
| Council President | |
| Antonio J. Albuquerque, District 1 | Jason B. Kirkpatrick, District 4 |
| Council Member | Finance Subcommittee Chair |
| E. Craig Dwyer, District 2 | Mia A. Ackerman, District 5 |
| Council Member | Board of Licensing, Vice-Chair |
| Kelley Morris District 3 | Bruce A. Lemois, At-Large |
| Council President, Pro Tem Ordinance Subcommittee Chair | Board of Licensing Chair Council Member |
MINUTES OF THE CUMBERLAND TOWN COUNCIL
WEDNESDAY, MARCH 18, 2009
EVERETT “MOE” BONNER, JR. COUNCIL CHAMBERS
45 BROAD STREET, CUMBERLAND, RHODE ISLAND
REGULAR SESSION
The meeting was called to order at 7:52p.m. by Council President Higgins.
The meeting opened with the pledge of allegiance to the flag.
MEMBERS PRESENT:
Council President Higgins, Councilors Dwyer, Ackerman, Lemois, Morris, and Kirkpatrick
Also present Daniel J. McKee, Mayor, Thomas E. Hefner, Town Solicitor and Sandra M. Giovanelli, Town Clerk
MEMBERS ABSENT:
Councilor Albuquerque
GENERAL ANNOUNCEMENTS:
1. A citation presented to Bethany Conway for her distinguished finalist for the Prudential Spirit of Community Award Honoring her outstanding community service
Mayor McKee began by recognizing Bethany Conway’s family that were present including Jim Conway who was a former Council member. He stated that he believes that it comes to their attention every once and while that some of the youth in the community that are giving of themselves in a volunteer way. He also added that every once and awhile one of the individuals who are working hard to make their community better and providing services for people in needs get recognized. He explained that tonight they recognize, Bethany Conway, as one of those individuals who has been named as a top honoree in the Prudential Spirit of Community Award Program relative to the work she began in 2005 where every Tuesday she visited Saint Francis Aid Facility Ministry House of Compassion. He mentioned that during her visits she would bring friends with her, cooked home cook meals for the people in the facility so it gives him great pleasure to just recognize for a job well done and representing their Town is a very positive way.
Council President Higgins stated that on behalf of the Council he expressed their appreciation for her achievements.
Councilor Ackerman announced that Wednesday, March 25th the Town’s Youth Commission will be hosting their first Students Speak Out at the Cumberland High School at 2:30p.m. and everyone is welcome.
UNANIMOUS CONSENT ITEMS
CONSENT AGENDA
A. Acceptance of Minutes of the Regular Town Council Meeting of March 4, 2009
B. DEPARTMENT REPORTS:
Parks and Recreation Department
C. COMMUNICATIONS:
1. C-09-07 – A request from the Town of West Warwick to support a resolution the adopted on February 17, 2009 supporting ending the Caruolo Act
MOTION BY COUNCILOR LEMOIS, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE. VOTE 6/0.
LICENSE:
A. VICTUALLING HOUSE LICENSE-
1. An application for a Fourth Class Victualling House transfer from Ahmad Chaudry to Munawar Ghumman for F & Z LLC d/b/a Gulf Express located at 3 Pine Swamp Road
Public Hearing opened at 7:56p.m.
Public Hearing closed at 7:57p.m.
MOTION BY COUNCILOR MORRIS, SECONDED BY COUNCILOR KIRKPATRICK AND IT IS UNANIMOUSLY VOTED TO APPROVE SUBJECT TO DEPARTMENT OF HEALTH APPROVAL, DIVISION OF TAXATION APPROVAL, PAYMENT OF LOCAL TAXES AND FIRE DEPARTMENT APPROVAL. VOTE 6/0.
B. HOLIDAY LICENSE:
1. An application for a Holiday License from Munawar Ghumman for F & Z LLC d/b/a Gulf Express located at 3 Pine Swamp Road
MOTION BY COUNCILOR MORRIS, SECONDED BY COUNCILOR LEMOIS AND IT IS UNANIMOUSLY VOTED TO APPROVE SUBJECT TO DEPARTMENT OF HEALTH APPROVAL, DIVISION OF TAXATION APPROVAL, PAYMENT OF LOCAL TAXES AND FIRE DEPARTMENT APPROVAL. VOTE 6/0.
2. An application for a Holiday License from Thanomsee Maurer for Spin City Cumberland LLC located at 3400 Mendon Road
MOTION BY COUNCILOR ACKERMAN, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE SUBJECT TO PAYMENT OF LOCAL TAXES. VOTE 6/0.
3. An application for a Holiday License from Scott M. Crowley for Homecare New England LLC located at 45 Industrial Road
MOTION BY COUNCILOR MORRIS, SECONDED BY COUNCILOR LEMOIS AND IT IS UNANIMOUSLY VOTED TO APPROVE. VOTE 6/0.
4. An application for a Holiday License from David A. Rossborough for Planet Fitness located at 1800 Mendon Road
MOTION BY COUNCILOR ACKERMAN, SECONDED BY COUNCILOR LEMOIS AND MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE. VOTE 6/0.
5. An application for a Holiday License from Paul F. D’Adamo for Bill’s Auto Parts located at 70 Macondray Street
MOTION BY COUNCILOR MORRIS, SECONDED BY COUNCILOR ACKERMAN AND IT IS UNANIMOUSLY VOTED TO APPROVE. VOTE 6/0.
FINANCE REPORT:
1. General Fund Report as of 2/28/09 for the current FY 2008-2009 period.
Thomas Bruce, the Finance Director, explained that they had forwarded information regarding an upcoming budget amendment which he indicated that this amendment is designed to provide for a balanced budget result for the end of the year. He added that what is important about it is especially the transmittal he sent today is that last week the governor’s amendments to his supplemental budget allowed the restoration of general revenue sharing to towns/cities and for Cumberland it was $744,000. He mentioned that they table he sent them today really provided relief in terms of some of the other areas that they were utilizing to save money and that ordinance should be presented at the next meeting scheduled for April 1st. He stated that the revenues themselves that are on that table that have deficiencies other than taxes and he mentioned that meal taxes are running very low with $110,000 account deficit for that item. He also report account deficit of $80,000 in building permits and $70,000 in recordings. Mr. Bruce explained that they have collected 81 percent of budget of the 2008 taxes during the current fiscal year which is the lowest collection rate since 2002. He further explained that the reason for this is the general economy, an increase in their delinquencies for real estate, their budget goal at the beginning of the year was very aggressive and in fact the uncollected budgeted amount is less than the actual receivable amount by about $200,000. He indicated that in terms of the 2009 taxes that budget objective is lowered which will help them control the tax increase for next year because the lowering by $400,000 increases their non taxed revenues lessening the burden on the tax levy so their tax increase will not be as high as it other wise would be.
Council President Higgins asked if the budget amendment was ready to be presented because if it were they are already having a special license commissioners meeting on Monday they could have a special meeting to put it on for presentation and permission to advertise.
Mr. Bruce stated that he would like to defer to the Mayor for that answer but he would like to mention that it is an unknown when the General Assembly is going to act on confirming this but some cities and town are falling in line with acting early.
Council President Higgins stated that he will leave the option open to them if they feel it is appropriate to put it on to get the ball rolling.
Mayor McKee added that they have worked hard to try to get some of that general revenue restored and he thinks that it is a good thing to plug the hole with use some kind of stimulus in this current budget. He explained that not only is it good for our community but it is also good for the other communities that would potentially be running large deficit then the stronger communities are going to have to fill in the gap. He went on record by stating that the idea of using the stimulus money to restore the money that was cut from the municipalities is good think for us locally and going forward in the 2010 budget they can manage what could potentially happen but to have something taken away so late in the budget year is why they are coming to the Council with a budget amendment.
Mr. Bruce continued his report presentation by stating that in regards to expenses he stressed that health insurance is doing well at slightly less than budget. He moved onto the topic of cash flow, as of February 28th, 18 percent of their receivables for the 2008 bill are not collected compared to previous years they are showing a weakness on tax payers coming in and paying as quickly as they have done in the past however for the month of February their cash flow projection shows 5.7 million from taxes their was no weakness in that regard. He mentioned that $1.1 million dollars is in their budget for revenue sharing which they were suppose to receive in March hasn’t be received and March and April are their worst cash flow months as they anticipate the tax bills which is why this year they are coming to the Council for early approval. He stressed that without the general revenue sharing they have problems and they have already started to holds bills for 30 day cycles and they have asked the School Department to do the same. He pointed out that the water bills will be going out shortly and will be due back on April 25th that is an amount of about $1 million dollars that will greatly help their cash flow. He concluded that their last ordinance tonight regard sewers, ordinance no. 09-06A, will actually bring in $400,000 to $500,000.
OLD BUSINESS:
A. ORDINANCES FOR PUBLIC HEARING:
1. #09-01A – An Ordinance Related to Sewer Lot Development Fee (lasted tabled from February 18, 2009)
Councilor Kirkpatrick explained that everyone should have before them the latest version of this ordinance dated March 17th. He further explained that the Finance Sub-Committee spent three evenings carefully reviewing the next 6 ordinances and currently the sewer fund has a $1.4 million dollar deficit which will continue to grow if the Town doesn’t address it. He stated that this ordinance relates to a sewer assessment of certain undeveloped lots which means that this would pertain to lots are currently not be charged an assessment.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO REPLACE 09-01A WITH 09-01A AS AMENDED. VOTE 6/0.
Public Hearing opened at 8:17p.m.
The Finance Director, Mr. Bruce, explained that the ordinance speaks clearly, especially in the first section, that there are numerous build able lots in the Town of Cumberland both improved and unimproved which are not adjacent to a public sewer system and so forth.
Council President Higgins asked if they are charging people a sewer assessment fee for lots that are not adjacent to a sewer system.
Mr. Bruce explained that they may in the future connect into an existing sewer system or new public sewer system without being charged an assessment so at the time of development this assessment is being levied on behalf of the Town to recapture the cost associated with said property for construction and infrastructure construction that has already been completed and paid for by the Town or the other users of the system. He further explained that as far as the worksheet attached in relation to the general assessment fee, the Finance Sub-Committee discussed taking a gage past sewer assessments that they have had three large groups which are listed on the page behind the fiscal note. He pointed out that they average $3,000 total of $9,000, an 80 to 90 percent, which he and David Carr reviewed all the roles and came up with this being the best logic. He informed that as per the committee’s discussion and decision they applied a future value interest factor of 1.8060 off the table attached to come up with a 2008 figure that covers the time between 1988 and 2008. He added that 1988 was the year that these three large groups concluded being built so what they have is an average but the value is being brought up to 2008 and that cost is approximately $5400 which is the assessment fee. He mentioned that even with this budget amendment they have right now and not last year but every year the Town has paid the interest on bonded debt so the logic is that these new undeveloped lots once they are assessed the fee do not have the benefit of that interest subsidy by the Town so they are going to take that value and they are going to apply a present value factor (second table attached to the fiscal note) of .853 and come up with an assessment amount of $4600. He clarified that he knows that they are going into the past they are bring the value up to present but going future for a 10 year payment period they are giving them the benefit everyone else had of the interest being paid for by the Town. Mr. Bruce indicated that all the percentages on all this present value discounting is 3 percent. He concluded that if a particular developer or sewer assessment payer wanted to pay the entire $4600 up front they would get the benefit of a pre-payment discount and that is a present value factor over 10 years at 3 percent of .744, a lump sum.
Council President Higgins asked when could they expect to start receiving repayment to the general fund per year.
Mr. Bruce relied that if the ordinance were to be affective immediately that leaves 3 months in the fiscal year for current year activity and he doesn’t think that he has under estimated it but the amount of revenue related to this item probably very small. He stated that he knows that with ordinance no. 09-06 he had provided an updated budget and in that budget there is a grand total of connection fees $190,000 but we have already collected about $100,000 of that.
Public Hearing closed at 8:24p.m.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE AS AMENDED BY A ROLL CALL VOTE. VOTE 6/0.
Mr. Hefner stated that in looking at the fiscal note the figures that they have in the amended ordinance reflect everything except for a provision relating to a discount for payment up front for pre payment that would result in a fee amount of $3400.
Councilor Kirkpatrick moves to amend section 40-181 (b) to read, “if the owner upon issuance of certificate of occupancy pays a pre payment, the total fee would result in a fee amount of $3400.
Councilor Morris believes it should read that if the owner pre pays the entire total at the time of issuance of the certificate of occupancy pays a pre payment discounted amount of $3400.
Mr. Hefner recommends putting the amendment in Section 40-182 which refers to the manner of payment. He also recommended adding the language to line 7 of that section after “next nine (9) years”.
Council President Higgins commented that that section speaks to section 40-181 and that section doesn’t refer to any discount.
Mr. Hefner replied that section 40-182 refers to the assessment.
Council President Higgins stated that the actual fee is sited in the schedule of assessment not sited in the assessment section.
Mr. Hefner stated that he understood and that he has no problem with Councilor Morris’ language but he questions whether it should be more specific to also reference just $3400 because there are some of these projects where the fee maybe $80,000
Councilor Morris clarified that it is not only for the single family homes what they are stating is that they are suppose attach a present value factor .744 to any pre payment. She stated that if that is the case then maybe they have to say something like, if they have to pay 74 percent of the full assessment if the pre pay upon certificate of occupancy.
Mr. Bruce agreed that that would be a good solution with .744 multiplied by the fee listed.
Council President Higgins asked if the solution is to amend section 40-182, at the end of line 7, by adding unless set payments are pre paid the annual fee shall have a discount of .744.
Councilor Morris added that it seems that it is at the time the connection permit is applied for not at the time the certificate of occupancy is issued.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR DWYER AND IT IS UNANIMOUSLY VOTED TO AMEND SECTION 40-182 LINE 7 BY ADDING A NEW SENTENCE TO READ, “THE EARLY PRE PAYMENT OF THE TOTAL FEE SHALL RESULT IN A DISCOUNT OF 25.6 PERCENT”. VOTE 6/0.
MOTION BY COUNCILOR MORRIS, SECONDED BY COUNCILOR KIRKPATRICK AND IT IS UNANIMOUSLY VOTED TO APPROVE AS AMENDED BY A ROLL CALL VOTE. VOTE 6/0.
Council President Higgins explained that Councilor Lemois has requested to take the ordinances out of order and hear ordinance no. #09-05 out of order, hearing no objections, they proceeded to #09-05.
2. #09-02A – An Ordinance Amending Ordinance 05-28 Entitled “An Ordinance Amending Article III- Sewers - Ferncrest Drive & Willow Drive” (lasted tabled from February 18, 2009)
Councilor Kirkpatrick explained that this is relation to Ferncrest and Willow Drive which is situated behind of Dave’s Marketplace and the Finance Sub-Committee amended it so that each property owner would equally be assessed the fee for this oppose to by frontage because there seemed to be some inequities. He pointed out that Councilor Morris attend the Finance Sub-Committee meeting on this matter because it is in her district and she does support the ordinance as amended. He mentioned that this assessment is paid over a 20 year period without interest.
Public Hearing opened at 8:49p.m.
Public Hearing closed at 8:50p.m.
Council President Higgins asked if anyone knows how they came to charge for this type of item by frontage in the first place and what is the rational behind it.
Mayor McKee explained that it was a decision made dating back to the 1970s which has been followed since then.
Councilor Morris stated that she had her own take on it which she would like to explain because this was initially presented by frontage. She continued by stating that 20 years ago the difference in cost for frontage was a lot less because construction costs were a lot less but now a days when you talk about another $40 per foot it is going to be a lot more per each unit. She explained that whether you live on a lot that has 50 feet of frontage or 70 feet it may still have 3 bedrooms.
Council President Higgins clarified that the rational would be that the pipe that runs in the street in front of the house they are charging the owner for that pipe rather than the Town absorbing that cost.
Councilor Morris agreed and added that back 20 years ago it really didn’t matter because there wasn’t that much of a difference but when they saw the numbers during the committee meeting they saw such a disparity where it didn’t make sense.
Council President Higgins asked if it is limited to the particular situation.
Councilor Morris replied that it is at this point.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE BY A ROLL CALL VOTE. VOTE 6/0.
3. #09-03A – An Ordinance Relating to Sewer Connection Fees (lasted tabled from February 18, 2009)
Councilor Kirkpatrick explained that based on their earlier passage of ordinance no. 09-01A as amended the Finance Sub-Committee recommends passage of this ordinance. He stated that this is for a connection fee shall be $1,000 per equivalent dwelling unit.
Public Hearing opened at 8:53p.m.
Public Hearing closed at 8:54p.m.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR LEMOIS AND IT IS UNANIMOUSLY VOTED TO APPROVE BY A ROLL CALL VOTE. VOTE 6/0.
4. #09-04A – An Ordinance Relating to Sewer Connections (lasted tabled from February 18, 2009)
Councilor Kirkpatrick explained that this is similar to ordinance no. 09-03A in relation to tie ins so again would be per equivalent based on ordinance no. 09-01A as amended and
Public Hearing opened at 8:54p.m.
Public Hearing closed at 8:55p.m.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE BY A ROLL CALL VOTE. VOTE 6/0.
5. #09-05 – An Ordinance Relating to Ethier Way Sewer Line (lasted tabled from February 18, 2009)
Public Hearing opened at 8:37p.m.
Councilor Kirkpatrick stated that this was part of the Finance Sub-Committee’s discussion over three evening and in addition Mr. Keenan came before them to provide some information about his situation at which time the Committee voted to move passage of this ordinance.
Council President Higgins asked for a brief explanation of the ordinance.
Mayor McKee explained that this ordinance is regarding a sewer line that was installed Ethier Way to take care of a long term of not only one home but potentially several homes. He added that he believes that they could have done this a little neater but in principle it is the same method as used on Crestwood Court and in this case Jim Keenan, who lives on Ethier Way, fronted about $60,000 of personal expense which they are obligated to take over the maintenance of the line. He pointed out that this was all done through proper engineering and inspections through the sewer department and at this time it would be in the best interest of the Town to purchase that line and reimburse Mr. Keenan for slightly less than 50 percent of his cost. He stated that the ordinance indicates that there are up to 10 families could tie in and that they could recover the $28,000.
Public Hearing closed at 8:41p.m.
Councilor Morris asked if they have any commitments from the neighbors to tie in at the $10,000 fee.
Mayor McKee replied that they do not have any commitments but they have had some inquires and they are waiting from some direction from the Town on how that would be done.
Councilor Morris stated that her only concern is that normally when they do these assessments for instance with Crestwood Court it would be by unit or by frontage so she questions if there is a way they could charge the people by frontage.
Mayor McKee reiterated that they could have done this a lot better but he thinks that if they had followed that practice early on to make people fully aware of what was going on then he would say that it was true however at this point they are trying to put together the best scenario possible.
Councilor Morris stated that she did attend the Finance Sub-Committee meeting and she does understand the history of this situation but she wants the public to understand that this system will serve at least 10 homes. She also wanted the public to know that this was carefully considered, that there is a history of promises made, that this system put in by Mr. Keenan will accommodate more than just the 3 or 4 houses and that there is an opportunity for the Town to do with this agreement.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE BY A ROLL CALL VOTE. VOTE 6/0.
6. #09-06A – An Ordinance Relating to Imposition of a Sewer Use Maintenance and Operation Fee (lasted tabled from February 18, 2009)
Councilor Kirkpatrick explained that this is in regards to the sewer use maintenance and operation fees similar to what they discussed with the Water Department in regards to a user fee for the cost of operation, maintenance and upgrade to the Town systems in the sewer. He added that over the years both users and non users have been contributing to the cost of the system and this would rectify that and they are also looking to increase the fee at this time. He concluded that the Finance Sub-Committee supports passage of this ordinance.
Mr. Bruce stated that this fee is about 5 years and it is devoted to supplementing the budget reflecting operating and management fees for the budget period. He explained that during the past 3 years they have accumulated a deficit over 3 years of $1.4 million dollars but the idea was to the deficit of $1.4 million a component in it would be the operation and maintenance cost therefore $21 of the fee is devoted to deficit reduction. He mentioned that the bills are traditionally sent out in the March/April time frame every year and the sewer budget has not been adopted yet so they are going to be presenting one for passage. He added that the fiscal note states that the current budget in its working form is actually $147,000 short however for the first time they have a shot at a balanced budget to get this fund back on track. Mr. Bruce explained that the way to do that which he referenced in the fiscal note where there is $90,000 renewal and replacement account because things can go wrong that amount can be tapped into but doesn’t have to be used but if it is not spent it could cover much of that shortfall and in other accounts including revenue. He concluded that the $21 debt related charge supports a 7 year payment plan and they have to look at the decline of the sewer assessment fees that currently exist this year of $630,000 which next year drops to $320,000 so next years challenge is to make up that gap and this legislation is critical to that.
Public Hearing opened at 9:00p.m.
Public Hearing closed at 9:01p.m.
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR MORRIS AND IT IS UNANIMOUSLY VOTED TO APPROVE BY A ROLL CALL VOTE. VOTE 6/0.
Councilor Lemois stated for the record that they passed 6 quite detailed and complicated in about 30 minutes with a six to nothing vote for each one. He pointed out the time and effort that went into this that Councilor Kirkpatrick mentioned 3 different meeting prior to tonight’s hearings which he thanked the committee members Councilors Kirkpatrick, Dwyer, Albuquerque, the Administration and Councilors that participated. He explained that although it appeared that they passed these ordinances quickly that there were many hours but into this and many arguments that they had to come to compromise to so he stressed that this wasn’t simply a rubber stamped passage.
Mayor McKee explained that two of the main issues they are working on in terms of their auditing problems had to do with water and sewer. He added that the work that was done was difficult work to do what needed to be done but in the long run by balancing both the water and the sewer accounts they will be providing property tax relief.
NEW BUSINESS:
A. CLAIMS:
1. Ronald J. Creamer, Esq. c/o John Spangenberger
Referred to the Solicitor’s Office
2. Warren R. Wolf, Esq. c/o Scott J. Koziol
Referred to the Solicitor’s Office
Referred to the Finance Sub-Committee
B. RESOLUTIONS:
1. R-09-08 – A resolution approving the replacement of the Fire Alarm System for Town Hall and The Blackstone River Theater
Thomas Bruce explained that there was no bidding based on the sole source provision of Rhode Island General Laws 45-55.
Mr. Hefner explained that what this means is that this is a knox box and they only person that makes it is the Knox Company so they have exception through the normal bidding process when you have something that is only provided by one particular manufacturer.
Jim Conway, the Deputy Chief of the Valley Falls District explained that this process started back in 2005 when they started notify business owners who had master boxes that we would be replacing them to go to a radio box system for better technology. He added that they started to notify everyone in June of 2006 that they had until June of 2008 to have this completed which has passed. He has been meeting with the Mayor and they came up with an agreement that they would have to go before the Council to have the money appropriated so that the last two building in the Valley Falls be completed.
MOTION BY COUNCILOR LEMOIS, SECONDED BY COUNCILOR DWYER AND IT IS UNANIMOUSLY VOTED TO APPROVE. VOTE 6/0.
PUBLIC COMMENTS:
Councilor Lemois recognized and thanked Deputy Chief Conway for his assistance while off duty with a medical incident that occurred with his grandson.
ADJOURNMENT:
MOTION BY COUNCILOR KIRKPATRICK, SECONDED BY COUNCILOR ACKERMAN AND IT IS UNANIMOUSLY VOTED TO ADJOURN AT 9:14P.M. VOTE 6/0.
_________________________________________
Sandra M. Giovanelli, Town Clerk