City Council Finance Sub Committee

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 Finance SC Minutes Date: April 24, 2018 Time: 5:30 PM Location: City Council Chamber 375 Merrimack Street, 2nd Floor, Lowell, MA PRESENT: Present on Roll Call were C. Elliott, C. Milinazzo, and C. Nuon. Also present were Conor Baldwin (CFO), Nick Navin (Parking Director), Heather Varney (Asst. CFO), Sue LeMay (Assessor), C. Conway and Manager Donoghue. MEETING CALLED TO ORDER: C. Elliott called the meeting to order in the Council Chamber. ORDER OF BUSINESS: Manager Donoghue offered presentation entitled “Finance Subcommittee Parking Rate – April 24, 2018’. Manager Donoghue outlined meetings involved with adjusting rate and preparing the presentation. Manager Donoghue noted that there had been no increase in over 15 years and that there is a need for at least two new garages in the City and that the Parking Enterprise Fund would not be able to sustain itself with the costs associated with the new construction and maintenance of existing garages. Manager Donoghue noted that the analysis only addresses the construction of one garage and that the parking need in the area is much larger than originally anticipated. C. Milinazzo questioned the contract rate for the spaces made available for the new court house. Mr. Baldwin commented on the methodology used to adjust the rate which was to bring the costs up to present day dollars and sustain the enterprise fund. Mr. Baldwin commented on the financial projections and the debt service impact. C. Milinazzo requested projections for new rates be furnished. Manager Donoghue commented on need for second garage and to improve maintenance on all garages and further forecasted the amount of spaces that would need to be available in the Hamilton Canal District. C. Elliott commented on increases in the parking rate and the establishment of discounts for certain users. C. Elliott raised the issue of exploring privatizing the parking industry in the City. Mr. Navin commented on the various discount programs regarding parking in the City and the amount of spaces that City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov  (Page 2 of 2) are tied to those discounts. C. Elliott questioned what status of those spaces are if they are not used by entities. Mr. Navin noted spaces can be taken if not used and he further commented on the use of the garages by Lowell High School and Middlesex Community College. Mr. Navin noted that discounts are being reduces over with negotiations of new contracts. C. Elliott noted need for increased revenues are diminished by discount users. Manager Donoghue noted that UML reimburses some of the debt service on the garages as per current Master Agreement. C. Milinazzo commented on outreach for meeting and the possible grouping of businesses to take advantage of any discounts. C. Nuon recognized need to increase so to protect tax payers who do not use the garages but increase should be incremental. Mr. Baldwin noted that financial projections before the body do not include any projections for the construction of the new high school. C. Milinazzo noted that there must be balance struck and that the administration has moved in the right direction with striking that balance. C. Elliott noted need to discuss with stake holders downtown. C. Conway noted City must run like a business and have a cleaner approach to raising the rates and noted that there is compromise here. C. Elliott questioned maintenance plan. Manager Donoghue noted it was a deferred maintenance plan over extended time. Motion by C. Milinazzo, seconded by C. Nuon to request City Manager to discuss discount plan with certain business groups in the downtown. So voted. Motion by C. Milinazzo, seconded by C. Nuon to accept the report as a report of progress and to gather further information for discussion and to table discussion regarding assessments for later date. So voted. ADJOURNMENT: Motion to adjourn by C. Milinazzo, seconded by C. Nuon. So voted. Meeting adjourned at 6:27 PM. Michael Q. Geary, City Clerk City of Lowell • 375 Merrimack Street • Lowell, MA 01852 • www.lowellma.gov