FINANCE COMMITTEE Regular meeting of the Finance Committee was held on Thursday, June 17, 2010 in the Council Chambers, City Hall, Cranston, Rhode Island. CALL MEETING TO ORDER: The meeting was called to order at 7:00 P.M. by the Chair. Present: Councilman Emilio L. Navarro, Chair Councilman Mario Aceto, Vice-Chair Councilman Paul H. Archetto Councilman Anthony J. Lupino Council President John E. Lanni, Jr. Absent: Council Vice-President Terence Livingston Also Present: Councilman Richard D. Santamaria, Jr. Councilman Robert J. Pelletier Robin Muksian-Schutt, Director of Administration Gerald Cordy, Deputy Director of Administration Evan Kirshenbaum, Assistant City Solicitor Robert Strom, Director of Finance Steve Woerner, City Council Internal Auditor Maria Medeiros Wall, City Clerk Rosalba Zanni, Assistant City Clerk/Clerk of Committees Heather Finger, Stenographer MINUTES OF THE LAST MEETING: On motion by Councilman Aceto, seconded by Council President Lanni, it was voted to dispense with the reading of the minutes of the last meeting and they stand approved as recorded. Motion passed unanimously. CORRESPONDENCE: OLD BUSINESS: • Ice Rink Financials update (Cont. 4/15/2010, 5/13/2010) Mr. Strom stated that in reviewing the financials through May, comparing income from last year to this year, our income has gone up in total of approximately 5 1/4 %; expenses has dropped $150,000. We are projecting a profit generated at this facility; net income of $36,000 for operating this building. He suggested 75% be put into a Reserve Account for the Ice Rink for any Capital Expenses for the Rink so we do not have to tape into our Bond Account. On motion by Councilman Aceto, seconded by Council President Lanni, it was voted to place this money in a restricted account for any repairs or any other expenses for this building. Motion passed unanimously. Councilman Aceto asked if the City has taken any legal action on the outstanding bills from the previous management company. Mr. Strom stated that this is in discussion, but we will be taking final legal action eventually, in probably 30-60 days. Councilman Aceto asked at what point we want to continue this issue. Council President Lanni stated that at the next meeting the Committee can get an update and take action then, if necessary. PUBLIC HEARING/NEW BUSINESS • City Council Internal Auditor’s Financial Analysis Mr. Woerner spoke regarding this analysis. $1.6 million shortfall from the Excise Tax, $2.5 million relates to items Auditors have been talking about for several years, such as taxes overpaid. • Motor Vehicle Tax Abatements No one appeared to speak in favor or to oppose. On motion by Councilman Lupino, seconded by Councilman Aceto, it was voted to recommend approval of this list of Abatements. Motion passed unanimously. • Tax Assessment Board of Review Decisions due to Taxes Assessed December 31, 2008 (informational only) No action. • Tax Interest Waiver Approvals No one appeared to speak in favor or to oppose. On motion by Councilman Aceto, seconded by Councilman Lupino, it was voted to recommend approval of this list of Tax Interest Waiver Approvals. Motion passed unanimously. • Tax Interest Waiver Denials No one appeared to speak in favor or to oppose. On motion by Councilman Aceto, seconded by Council President Lanni, it was voted to recommend approval of this list of Tax Interest Waiver Denials. Motion passed unanimously. • Resolution loan order authorizing the issue of $10,000,000 bonds of the City to finance the repair, resurfacing, construction and rehabilitation of public highways throughout the City of Cranston: authorizing the City to apply for federal and state advances for that purpose: authorizing the issue of $10,000,000 temporary notes for that purpose: and authorizing advances from the General Treasury for that purpose. On motion by Council President Lanni, seconded by Councilman Archetto, it was voted to recommend approval of this Resolution. Under Discussion: Councilman Aceto asked if the City has a prioritize list and if not, when will it become public. Ms. Schutt stated that she has a 150 page document in her office and the Council members are welcome to look at it. It lists every street in the City and gives it a rating not by priority. Councilman Navarro questioned the status of repairing or resurfacing of Rolfe St. and if this is part of this Resolution. Ms. Schutt stated that that is stimulus and is a separate account and we will be going out to bid for that soon. Roll call was taken on motion to recommend approval of this Resolution and motion passed unanimously. • *6-10-1S Ordinance ratifying modifications to the IAFF Local 1363 FY 2008-2011 collective bargaining agreement (July 1, 2008 - June 30, 2011). On motion by Councilman Aceto, seconded by Councilman Lupino, it was voted to recommend approval of this Ordinance. Under Discussion: Ms. Schutt thanked the Union on behalf of the Mayor, for coming forward again for a second time in concessions. Besides coming forward with savings, there are also significant structural changes and reducing composition in the Department. No one appeared to oppose. Roll call was taken on motion to recommend approval of this Ordinance and motion passed unanimously. • *6-10-2S Ordinance ratifying a new two year collective bargaining agreement with the IAFF Local 1363 FY 2011-2013 (July 1, 2011 – June 30, 2013). No one appeared to speak in favor or to oppose. On motion by Councilman Lupino, seconded by Councilman Archetto, it was voted to recommend approval of this Ordinance. Motion passed unanimously. • 6-10-3S Ordinance relating to the composition of personnel for the Cranston Fire Department (Fire Personnel Composition). No one appeared to speak in favor or to oppose. On motion by Council President Lanni, seconded by Councilman Archetto, it was voted to recommend approval of this Ordinance. Motion passed unanimously. • 6-10-4S Ordinance relating to the composition of personnel for the Cranston Police Department (Police Personnel Composition). No one appeared to speak in favor or to oppose. On motion by Council President Lanni, seconded by Councilman Archetto, it was voted to recommend approval of this Ordinance. Motion passed unanimously. MISCELLANEOUS BUSINESS: Councilman Aceto asked that for the next Finance Committee meeting, the Tax Assessor or Clerk’s Office provide any pilot agreement or any documents that the City may have with Johnson and Wales University for the property they have. The meeting adjourned at 7:20 P.M. Respectfully submitted., Rosalba Zanni Assistant City Clerk/Clerk of Committees