City Council

Office of the City Clerk City Hall • 375 Merrimack Street • Lowell, MA 01852 P: 978.674.4161 • F: 978.970.4007 www.LowellMA.gov Lowell City Council Michael Q. Geary City Clerk Regular Meeting Minutes Date: Jun 17, 2014 Time: 6:00 PM Location: City Council Chamber 375 Merrimack Street, 2nd Floor, Lowell, MA GENERAL PUBLIC HEARINGS 1. - GENERAL PUBLIC HEARINGS 1.1. 2014 / 442 - FY 15 Budget Public Hearing (Cont. from June 10, 2014). The Lowell City Council will hold Budget Hearings on the proposed Fiscal 2015, City of Lowell Budget on Tuesday June 17, 2014 at 6:00PM (continued from June 10, 2014) and on such other dates and times to be publicly announced by the City Council. The Hearing will be held in the City Council Chamber, City Hall. The public is invited to attend. Vote-Approve Budget FY'15 Roll call showed 9 present. (C. Martin arrived at 6:10 PM) Mayor Elliott Presiding. Motion to Suspend Rules to speak on energy matter by C. Mercier, seconded by C. Samaras. Adopted on Roll Call vote 8 yeas, 1 absent (C. Martin). So voted. C. Mercier noted that there was a change in the power carrier for the City and that the change would not affect the rate that had been agreed upon. Motion to accept the report as a report of progress by C. Milinazzo, seconded by C. Rourke. So voted. Motion to reopen budget hearing by C. Kennedy, seconded by C. Belanger. So voted. C. Kennedy noted the best approach would be to review by departments. C. Mercier noted there would be not cuts from her perspective and that each member should pose questions that they City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 2 of 7) may have. C. Belanger commented that there should be department review in order to clarify the tax increase. C. Samaras questioned the school budget process. C. Leahy noted that there should be a department review. M. Murphy commented that only the major department heads are in attendance. M. Elliott noted that if there were no objections it would be a department review. C. Mercier questioned line item Treasurer Dept. Robert Healy (Interim CFO) noted the items were estimates. C. Mercier questioned line items concerning Smart Growth areas. Mr. Healy outlined those items. C. Mercier questioned Medicaid costs. Conor Baldwin (Data Analyst) reviewed those costs. C. Rourke commented on revenue projections. Manager outlined the revenue estimates. Susan LeMay (City Assessor) outlined new growth projections. C. Rourke questioned free cash outlook. Manager commented on the use of free cash. C. Samaras commented charter school reimbursements. Manager noted the school spending element tied into the reimbursement. C. Samaras questioned the lottery amount available to the City. Manager noted that amount was included in local aid number. M. Elliott commented on the net school funding formula. C. Martin commented on the charter school reimbursement. Manager noted the money is approved and will be moved to the school side. C. Martin commented on the excise tax revenue estimates. Mr. Healy noted a better economic outlook and more aggressive collection approach increased the estimate. C. Martin noted the importance of growth in the budget. C. Martin commented on pension reserve remainder. Mr. Healy noted there was a limited amount remaining in the reserve. C. Martin questioned the positions in the budget. Manager noted that grant positions are included in the document and that there are no new budgeted positions. C. Belanger commented on tax lien redemption. Manager commented on how they were forecasted. C. Kennedy noted the excise tax estimate. Mr. Healy commented that it was a flexible account and is often used for free cash. C. Leahy commented on economic development aspect to budget. C. Leahy noted that school appearances need improvements as well as city streets. Ralph Snow (DPW Director) noted Chapter 90 money along with some city money is used for roads. Mr. Baldwin commented on the Capital Plan and road improvement. C. Leahy noted Lowell Memorial Auditorium funding. Mr. Healy commented on current agreement and city support will decline as years go on. C. Leahy noted that there should be more savings in garbage collection. Mr. Snow note tonnage will drop and rebates have been redeemed in FY 14 budget. C. Milinazzo commented on paybacks to the stabilization funds. Manager outlined plan to pay back. C. Milinazzo noted payments to Voke School are not counted towards net school spending. In Council the following Roll Calls were adopted for each department in FY 15 Budget: City Council – Motion to adopt $147,500 by C. Mercier, seconded by C. Kennedy. 9 yeas, so voted. Mayor - Motion to adopt $53,611 by C. Kennedy, seconded by C. Mercier. 9 yeas, so voted. C. Leahy commented on portrait. City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 3 of 7) City Clerk - Motion to adopt $335,477 by C. Mercier, seconded by C. Rourke. 9 yeas, so voted. City Manager - Motion to adopt $4,872,973 by C. Kennedy, seconded by C. Belanger. 9 yeas, so voted. City Manager – Lowell School System - Motion to adopt $50,000 by C. Milinazzo, seconded by C. Mercier. 9 yeas, so voted. City Manager – Marketing Development - Motion to adopt $330,000 by C. Kennedy, seconded by C. Belanger. 9 yeas, so voted. C. Belanger noted monies going to other areas besides marketing. Manager noted there was an addition to this item. C. Martin noted Lowell Auditorium should break even. City Manager – Contingency - Motion to adopt $295,000 by C. Martin, seconded by C. Mercier. 9 yeas, so voted. City Manager – Cable Access - Motion to adopt $250,200 by C. Rourke, seconded by C. Samaras. 8 yeas, 1 abstain (C. Martin), so voted. City Manager – Cultural Affairs & Special Events - Motion to adopt $116,023 by C. Belanger, seconded by C. Leahy. 8 yeas, 1 abstain (C. Samaras), so voted. C. Kennedy noted drop off in amount. Manager commented a position had been deleted. Finance - Motion to adopt $161,440 by C. Rourke, seconded by C. Mercier. 9 yeas, so voted. Auditing - Motion to adopt $496,241 by C. Samaras, seconded by C. Rourke. 9 yeas, so voted. Purchasing - Motion to adopt $398,742 by C. Rourke, seconded by C. Samaras. 9 yeas, so voted. Assessing - Motion to adopt $533,647 by C. Mercier, seconded by C. Martin. 9 yeas, so voted. C. Kennedy noted professional services line item. Ms. LeMay outlined the expenditure. Raymond Boutin, public speaker, commented on the effectiveness of the website regarding the assessing of property. C. Kennedy noted that the online information for Lowell is not adequate and needs improvement. Treasurer - Motion to adopt $895,607 by C. Milinazzo, seconded by C. Samaras. 9 yeas, so voted. C. Leahy commented on postage costs. C. Milinazzo commented on professional services line item. Manager noted they reviewed each line item before entry into the budget. M. Elliott requested report on professional services. C. Mercier commented on appeal process for demand notices. Human Relations - Motion to adopt $284,142 by C. Rourke, seconded by C. Belanger. 9 yeas, so voted. Management Information Systems - Motion to adopt $1,439,165 by C. Mercier, seconded by C. Milinazzo. 9 yeas, so voted. C. Kennedy questioned leasing expenditures and salaries. Law - Motion to adopt $1,290,706 by C. Rourke, seconded by C. Milinazzo. 9 yeas, so voted. M. Elliott relinquished Chair to Vice Chair Leahy at 7:25 PM. M. Elliott commented on the hiring of outside counsel and the rate that is being charged and further commented on the costs and use of surveillance in the City. City Solicitor O’Connor addressed the issue noting most costs associated with surveillance is related to Worker’s Comp cases and are minimal. M. Elliott City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 4 of 7) noted recent costs or litigation and noted it was out of hand. City Solicitor O’Connor noted that professional fees apply to all services during litigation. Motion by M. Elliott, seconded by C. Belanger to reduce line item for professional services by $25,000. Failed on Roll Call vote 3 yeas, 6 nays (C. Kennedy, C. Leahy, C. Martin, C. Mercier, C. Milinazzo, C. Samaras). So voted. On motion, C. Belanger noted costs were too high and too much of a burden on the taxpayer. Manager commented on budget item and how it was formulated. C. Martin commented on item and how it increased. City Solicitor O’Connor noted that the line item now includes medical services as well. Manager noted the coast must be reviewed and there is movement towards keeping matters in house. C. Kennedy commented on the use of surveillance. City Solicitor O’Connor noted most use of surveillance is for Worker’s Comp and that costs have increased due to litigation in which there are potential conflicts present. C. Kennedy noted it was important to have litigation updated by the Law Department. Manager noted the policy is to limit the use of outside counsel. C. Samaras commented that there should be movement to reduce the costs. M. Elliott commented moving forward costs should be minimized. C. Kennedy noted there should be pursuit of savings in all departments. C. Rourke commented on last year spending. C. Martin noted the importance of the discussion and finds that the funding is not unreasonable. Vice Chair Leahy returned Chair to M. Elliott at 7:50 PM. Elections - Motion to adopt $259,418 by C. Mercier, seconded by C. Samaras. 9 yeas, so voted. Planning & Development - Motion to adopt $2,497,884 by C. Belanger, seconded by C. Martin. 9 yeas, so voted. C. Kennedy commented on line item regarding professional services. Diane Tradd (Interim DPD Director) outlined the expenditure. Police - Motion to adopt $24,877,047 by C. Rourke, seconded by C. Samaras. 8 yeas, 1 abstain (C. Kennedy), so voted. C. Milinazzo noted the introduction of 5 new officers. Supt, Taylor (LPD) outlined the expenditure and noted that overtime was level funded for the year. C. Belanger commented on overtime budget. C. Martin noted changes from proposed budget and Mr. Baldwin outlined the changes. C. Rourke commented on the use of money for police substations. C. Leahy commented on the number of cars on the force. Supt. Taylor noted the amount of cars in the force. C. Kennedy commented on Matrix Study and how it was used for budget purposes. Supt. Taylor noted the use of grant money in the department. C. Belanger commented on reimbursement costs and Supt. Taylor noted up tick was due implementation of reverse 911 system. C. Rourke noted the continued use of Crime Stopper program. Fire - Motion to adopt $17,517,241 by C. Leahy, seconded by C. Kennedy. 9 yeas, so voted. Lowell Public Schools - Motion to adopt $152,485,616 by C. Milinazzo, seconded by C. Mercier. 8 yeas, 1 abstain (C. Martin), so voted. Greater Lowell Technical School - Motion to adopt $6,998,741 by C. Mercier, seconded by C. Rourke. 8 yeas, 1 abstain (C. Martin), so voted. DPW Administration - Motion to adopt $1,395,168 by C. Samaras, seconded by C. Milinazzo. 9 yeas, so voted. C. Kennedy questioned utility costs. Mr. Snow and Mr. Baldwin outlined cost and energy savings. C. Martin noted the increases were small and questioned who had City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 5 of 7) oversight. Mr. Baldwin noted there was a grant funded position for oversight of costs. Mr. Healy commented on coming rebates. C. Leahy commented on solar fields. Mr. Healy outlined the programs. M. Elliott requested report regarding leasing of the solar fields. DPW Engineering - Motion to adopt $441,064 by C. Rourke, seconded by C. Milinazzo. 9 yeas, so voted. DPW Land & Buildings - Motion to adopt $2,528,810 by C. Kennedy, seconded by C. Belanger. 9 yeas, so voted. DPW Streets - Motion to adopt $1,253,187 by C. Kennedy, seconded by C. Belanger. 9 yeas, so voted. DPW Other – Waste Collection & Dispos - Motion to adopt $5,350,000 by C. Leahy, seconded by C. Martin. 9 yeas, so voted. C. Kennedy questioned line item. Mr. Snow outlined the item. C. Belanger commented on collection. DPW Other – Street Lighting - Motion to adopt $513,000 by C. Rourke, seconded by C. Mercier. 9 yeas, so voted. DPW Other – Snow & Ice - Motion to adopt $1,350,000 by C. Mercier, seconded by C. Milinazzo. 9 yeas, so voted. C. Martin questioned the line item and funding. Mr. Healy noted the base minimum that could be used in calculations. C. Leahy commented on private contracts for snow. Mr. Healy commented on the program. Parks - Motion to adopt $2,203,587 by C. Leahy, seconded by C. Kennedy. 9 yeas, so voted. C. Kennedy noted there should be help with funding certain parks in the City. Manager noted the increase in the Parks budget. C. Belanger commented on new track being funded by grants and city money. C. Rourke noted the need for the parks to be kept up for the children. C. Mercier commented on the importance of keeping the fields up. Cemetery - Motion to adopt $275,642 by C. Mercier, seconded by C. Samaras. 9 yeas, so voted. C. Kennedy commented on the salaries. Manger noted personnel request. Tom Belgarde commented on department having one employee and most work is contracted out. Recreation - Motion to adopt $696,395 by C. Mercier, seconded by C. Milinazzo. 7 yeas, 2 abstain (M. Elliott, C. Martin), so voted. Health - Motion to adopt $2,395,470 by C. Samaras, seconded by C. Rourke. 9 yeas, so voted. Council on Aging - Motion to adopt $305,771 by C. Kennedy, seconded by C. Leahy. 9 yeas, so voted. Veterans’ - Motion to adopt $1,275,901 by C. Kennedy, seconded by C. Belanger. 9 yeas, so voted. Library - Motion to adopt $1,247,470 by C. Kennedy, seconded by C. Mercier. 9 yeas, so voted. Unclassified – Debt Service - Motion to adopt $14,003,182 by C. Rourke, seconded by C. Milinazzo. 9 yeas, so voted. Unclassified – Workers Comp - Motion to adopt $625,000 by C. Leahy, seconded by C. Martin. 8 yeas, 1 abstain (C. Mercier), so voted. City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 6 of 7) Unclassified – Unemployment - Motion to adopt $540,000 by C. Milinazzo, seconded by C. Rourke. 9 yeas, so voted. Unclassified – Health Insurance - Motion to adopt $22,725,000 by C. Samaras, seconded by C. Rourke. 9 yeas, so voted. Unclassified – Retirement - Motion to adopt $20,411,365 by C. Martin, seconded by C. Kennedy. 9 yeas, so voted. Unclassified – Medicare Tax - Motion to adopt $2,500,000 by C. Belanger, seconded by C. Leahy. 9 yeas, so voted. Unclassified – Claims & Judgments - Motion to adopt $835,000 by C. Kennedy, seconded by C. Mercier. 9 yeas, so voted. Unclassified – Other Insurance - Motion to adopt $287,752 by C. Rourke, seconded by C. Samaras. 9 yeas, so voted. Unclassified – No. Middlesex - Motion to adopt $29,774 by C. Kennedy, seconded by C. Belanger. 9 yeas, so voted. General Fund - Motion to adopt $299,774,958 by C. Mercier, seconded by C. Milinazzo. 9 yeas, so voted. Wastewater Enterprise Fund - Motion to adopt $18,649,730 by C. Belanger, seconded by C. Kennedy. 9 yeas, so voted. C. Kennedy questioned professional service item. Mark Young (Director) outlined the item. C. Kennedy questioned the use of consultants at the facility. Mr. Young outlined the program. Parking Enterprise Fund - Motion to adopt $5,637,374 by C. Samaras, seconded by C. Belanger. 9 yeas, so voted. Water Enterprise Fund - Motion to adopt $8,590,415 by C. Martin, seconded by C. Leahy. 9 yeas, so voted. M. Elliott noted two positions in the budget. C. Kennedy commented that the department may need the positions in the future. Manager outlined the department budget. Lowell Memorial Auditorium - Motion to adopt $1,335,000 by C. Martin, seconded by C. Kennedy. 9 yeas, so voted. C. Belanger noted deficit and maintenance in the item. In Council, hearing held, hearing closed. Vote read twice. Roll Call vote to adopt FY15 Budget of $333,987,477. So voted. C. Kennedy complimented the work on the budget including revenue projections. C. Martin commented on the trends, goals and projections. C. Samaras noted it was a good job done. M. Elliott noted that many challenges were met in this budget. City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 7 of 7) VOTING Committee Member YES NO ABSTAIN RECUSE MOTION SECONDED Elliott, Rodney M. x Belanger, Corey x x Kennedy, Jr, Edward J. x x Leahy, John J. x Martin Jr., William F. x Mercier, Rita M. x Milinazzo, James L. x Rourke, Daniel P. x Samaras, William x ADJOURNMENT 2. - Time for meeting to stand adjourned. Motion to Adjourn by C. Mercier, seconded by C. Milinazzo. So voted. Adjourned at 9:25 PM. Submitted by: Michael Q. Geary, City Clerk City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov