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MINUTES - Regular - 2/23/2006 CITY OF SALEM 345 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL A Regular Meeting of the City Council was held in the Council Chamber on Thursday, February 23, 2006 at 7.00 P.M., for the purpose of transacting any and all business. Notice of this meeting was posted on February 17, 2006 at 10.51 A.M. Councillor Sargent was absent. Council President Jean M. Pelletier presided. Councillor Prevey moved to dispense with the reading of the record of the previous meeting. It was so voted. President Pelletier requested that everyone please rise to recite the Pledge of Allegiance. Councillor Furey took a moment of personal priviledge for best wishes to Jerry George for a speedy recovery. Councillor O'Leary moved and received unanimous consent to go to Communications from the Mayor, Received after the deadline of Tuesday noon, to allow the Mayor to make a presentation regarding the City of Salem Budget Deficit Reduction and Staff Re-Organization Plan. Mayor Kimberley Driscoll addressed the Council and audience regarding the Budget Deficit Reduction and Staff Re-Organization Plan. Councillor O'Leary moved to return to the regular portion of the Agenda. It was so voted. #146 —APPTS. TO DESIGN REVIEW BOARD The Mayor's appointment of the following to serve on the Design Review Board with the following terms, was adopted by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. Glenn Kennedy 108 Leach St., Salem Term to expire March 1, 2009 Ernest DeMaio 289 Essex St., Salem Term to expire March 1, 2009 Michael Blier 8 Broad St., Salem Term to expire March 1, 2007 Councillor O'Leary moved and received unanimous consent to let the appointees speak. 346 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL #147 — REAPPT. CONSTABLE The Mayor's reappointment of Paul Minsky to serve as a Constable for a term to expire February 6, 2009, was received and filed. #148 —APPR. CEMETERY— BURIAL The following Order, recommended by the Mayor, was adopted under suspension of the rules by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. ORDERED: That the sum of Six Thousand Dollars ($6,000.00) is hereby appropriated from the "Receipts Reserved — Sale of Vaults" account to the "Cemetery — Burial" account in accordance with the recommendation of Her Honor the Mayor. #149 —APPR. HARBORMASTER —VEHICLE REPAIR The following Order, recommended by the Mayor, was adopted under suspension of the rules by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. ORDERED: That the sum of Two Thousand Six Hundred and Sixty-Nine Dollars and Sixty- two cents ($2,669.62) is hereby appropriated from the "Receipts Reserved — Harbormaster" account to the "Harbormaster— Vehicle Repair" account in accordance with the recommendation of Her Honor the Mayor. #150 —APPR. CEMETERY— OVERTIME The following Order, recommended by the Mayor, was adopted under suspension of the rules by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. ORDERED: That the sum of One Thousand Five Hundred Dollars ($1,500.00) is hereby appropriated from the "Trust Fund — Perpetual Care Interest Income" account to the "Cemetery — Overtime" account in accordance with the recommendation of Her Honor the Mayor. CITY OF SALEM 347 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL #151 — REFERRAL OF PROJECT 96 SWAMPSCOTT ROAD TO MASS. DEVELOPMENT FINANCE AGENCY The following Order, recommended by the Mayor, was adopted by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. WHEREAS, the Massachusetts Development Finance Agency (the "Agency") has received an inquiry from Jacqueline's Wholesale Bakery, Inc., (the "Sponser", which term includes any parent, subsidiary or related affiliate entity) as a potential Sponser of a project to be financed by the Agency, to consist of certain industrial development facilities to be located in the City of Salem, Massachusetts, and being generally described as the financing and refinancing of: (1) the acquisition of certain real property and an existing commercial facility located at 96 Swampscott Road, Salem, Massachusetts to be owned by Jacqueline's Wholesale Bakery, Inc.; (11) the acquisition of equipment for the manufacturing facility; and (111) the renovation of a 22,250 sq. ft. space in a vacant condominium commercial building; all as more fully described in the Sponser's application for tax-exempt financing; WHEREAS, the Sponsor has made application to the Agency for the financing of the Project through the issuance of its Revenue bonds (the "Bonds"); WHEREAS, the Agency has notified the City in writing of such inquiry by the Sponsor, in compliance with Section 8 (a) of Chapter 23G of the Massachusetts General Laws, as amended, and; NOW, THEREFORE, BE IT ORDERED that the City Council acting in the name and behalf of the City of Salem, Massachusetts, hereby requires the Agency assume the role of an industrial development financing authority in financing the Project by issuance of the Bonds pursuant to Massachusetts General Laws Chapter 23G and Chapter 40D to finance the Project. Councillor O'Leary moved immediate reconsideration in the hopes it would not prevail. Reconsideration was denied. #152 — PARKING BOARD RECOMMENDATION FOR PARKING RATE INCREASES The following Order was received after the deadline of Tuesday Noon. Councillor O'Leary requested and received unanimous consent to suspend the rules. The following Order, recommended by the Mayor, was referred to the Committee of the Whole. ORDERED: That the following fees for parking garages and parking rate increases shall be effective upon adoption of this Order. I ask for your approval on the proposed parking rate 348 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL increases. In addition, I ask that the Council approve the enforcement of meter parking on Saturdays from 8.00 a.m. to 5.00 p.m., as well as the installation of meters at the Salem Willows: Parking Rates Current Rates Mayor's Proposals Est. Revenue Increase Per hour $1.50 $1.50 (no change) - Max per day (12 Hrs) $10.00 $12.00 - Overnight Parking $10.00 $12.00 - Overnight Parking (24 Hr) $20.00 $24.00 - Yearly Pass $375.00 $500.00 $46,875.00 Senior Resident Yearly pass $150.00 $200.00 $4,300.00 Senior Yearly Pass $200.00 $250.00 $2,500.00 Monthly Pass $55.00 $60.00 $750.00 Senior Resident Monthly Pass $20.00 $25.00 $500.00 Senior Monthly Pass $25.00 $30.00 $1,250.00 20 Stamps (12 hrs. each) $40.00 $60.00 $75,000.00 20 Stamps Senior Resident (12 hrs. each) $15.00 $20.00 $500.00 20 Stamps Senior (12 hrs. each) $20.00 $25.00 $1,250.00 100 Merchant Validation Stamps (1 hour) $25.00 $50.00 $38,000.00 Bridge St. Lot Daily Charge $2.00 $2.00 (no change) - Snow Emergency $1.00 $1.00 (no change) - Haunted Happenings Events $15.00 $15.00 (no change) - $5.00 after 5.00 p.m. - $5.00 $25,000.00 Other proposals include: Additional Mayor proposals Enforce meter parking on Saturdays, 8.00 a.m. to 5.00 p.m. $30,000.00 Installation of meters at Salem Willows $25,000.00 ESTIMATED INCREASE IN TOTAL REVENUE: $287,925.00 #153 - DECLARE SZETELA LANE SITE AS SURPLUS The following Order was received after the deadline of Tuesday Noon. Councillor O'Leary requested and received unanimous consent to suspend the rules. CITY OF SALEM 349 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL The following Order, recommended by the Mayor, was adopted by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. Councillor O'Leary moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied. ORDERED: That the Council hereby declares the Szetela Lane site, 1 Fort Avenue (Map 41, Lot 235), 3 Fort Avenue (Map 41, Lot 236), 4 Szetela Lane (Map 41, Lot 243), 1 Rear Fort Avenue (Map 41, Lot 244) and 20 Webb Street (Map 41, Lot 245), as surplus properties. #154 — ORDINANCE AMENDING BUILDING PERMIT APPLICATION FEE The following Order was received after the deadline of Tuesday Noon. Councillor O'Leary requested and received unanimous consent to suspend the rules. The following Ordinance, recommended by the Mayor, was adopted for first passage by unanimous roll call vote on 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. In the year two thousand and six An Ordinance to amend an Ordinance relative to Building Permit Application Fee Be it ordained by the City Council of the City of Salem, as follows: Section 1. Chapter 12, Section 2 (b) (2), is hereby amended to provide for a $1.00 increase in residential permit fees from $6.00 to $7.00 per thousand and a $1.00 increase in commercial permit fees from $10.00 to $11.00 per thousand. #155 — MAYOR SUBMITTING BUDGET DEFICIT REDUCTION AND STAFF RE- ORGANIZATION PLAN The following Order was received after the deadline of Tuesday Noon. Councillor O'Leary requested and received unanimous consent to suspend the rules. Mayor Driscoll gave a presentation regarding the following City of Salem Budget Deficit Reduction and Staff Re-Organization Plan. City of Salem Budget Deficit Reduction and Staff Re-Organization Plan Presentation to the Salem City Council February 23, 2006 350 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL Introduction As you know, the City of Salem is facing an estimated $3.5 million dollar deficit that must be closed by the end of this fiscal year. The deficit is due in large measure to chronic under funding of the City's health insurance trust account. In fact, nearly all of the city's reserves were depleted in the Fall of 2005 in order to fund a combination of unfunded health insurance costs and the prior year snow removal costs. In other words, we do not have reserve accounts to tap into now to help deal with the pending deficit. As such, it will be necessary for the City to undertake a series of sharp budget reductions, coupled with assorted revenue enhancement measures and an aggressive staff re-organization plan. Unfortunately, any budget reductions going forward will result in staff reductions, as the non-personnel accounts have already been severely reduced over the years. Moreover, the proposed staff reductions and resulting re-organization plan must be undertaken with an eye toward the Fiscal Year 2007 operating budget. Given the number of one time revenues used for the current budget cycle, much of the staff re-organization plan will be undertaken to help in the effort to develop a balanced budget for next fiscal year which commences July 1. Proposed Revenue Enhancements and Cost Saving Measures Health Insurance Savings The recent action by the City Council to accept the provisions of M.G.L. chapter 3213, section 18, a Massachusetts statute requiring all Medicare-eligible retirees who are currently on self- insured plans to move from self-insured coverage to a fully insured Medicare supplement plan, is estimated to save the City approximately $700,000 this fiscal year and next. This is a major cost saving initiative that will insure that all retirees over the age of 65 are treated consistently, while also providing greater control of costs associated with the City's Healthcare Insurance Trust account, the fastest rising municipal budget item for each of the last five years. Given the magnitude of the dollars involved, as well as the prior and current deficits related to the Health Insurance Trust (HIT) account, we are closely monitoring HIT expenditures and revenues. In so doing, we have determined that employee/retiree contributions for health insurance have been under funded for last fiscal year and this fiscal year. As you know, the City is self-insured for health insurance which means that at the beginning of each year we estimate the likely costs of our health benefits based on prior year trends related to claims, prescriptions, etc. We then assess employees and retirees 20% of the estimated cost and the City pays the remaining 80% of costs (please note that the employee/retiree percentage may vary depending on the insurance plan chosen by the employee/retiree). In reviewing the prior year reconciliation, it is clear that the City collected approximately $170,000 less than we should have for Fiscal Year 2005. In other words, total health benefits costs for FY2005 totaled $11,992,880, which means that employee/retiree contributions should have totaled $3,078,854. Unfortunately, the City only collected $2,909,687 from employees and retirees through payroll deductions/payments, and must now work with our employee groups to recoup CITY OF SALEM 351 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL the $170,000 owed for the prior year expenditures. In addition, based on our review of year to date health insurance expenses and revenues for this fiscal year, it would appear that same trend is repeating itself again this fiscal year. However, due to the increase of health care costs this year, the amount under funded by employee contributions is expected to be significantly higher than last year's figure. Since the fiscal year is not over, it is difficult to provide you with an exact amount that needs to be recouped from our employees, but we are estimating that it could be as much as $300,000 additional that needs to be collected. Please note that this circumstance should not be viewed as a slight toward our employees or the collective bargaining groups that represent them. In the past, municipal officials have routinely proposed adjustments to health care benefits and payroll deductions in order to ensure that the cost of benefits was collected in accordance with the 80/20 split between employer and employee. Unfortunately, the increases that were passed on to employees over the last two years (meaning this year and last) were not sufficient to keep pace with rising costs. The result being that the City has overpaid our portion of health insurance benefits and we must now work with employee groups to recoup the under funded portion of health care benefits. I anticipate being able to recover the $170,000 owed for FY2005 within the course of this fiscal year, subject to review and agreement with our collective bargaining units. As for the amounts owed for the current fiscal year, we are still working on proposed repayment options and will be discussing same with employee groups over the weeks ahead. Lastly, we are aggressively reviewing actual, as opposed to estimated, health insurance trust account expenditures on a monthly basis. While our estimated claims experience has not changed, our actual expenditures are showing a slightly lower deficit in the health insurance trust account than anticipated. As such, I am cautiously optimistic that our health insurance deficit will be closer to $2 million, as opposed to the earlier stated $2.2 million. However, I must caution the Council that we have more than one quarter remaining in the fiscal year and given our claims experience and prior year indiscretions related to funding health insurance, I want to be reasonably conservative regarding this item. Public Safety Overtime and Medical Supplementals As you know, both Police and Fire Department overtime accounts were funded at levels less than prior year expenditures. As a result, we anticipate a $337,347 deficit in under funded police and fire overtime costs this fiscal year. I have previously informed the Chiefs of both departments that it is unlikely we will have the funds necessary to support the supplemental requests they have identified for overtime. As such, these departments have prepared a plan of action assuming they will not have additional dollars to meet anticipated overtime needs, as noted below. Police Department Anticipated Police overtime requests total $153,347 and are primarily related to Haunted Happenings. In order to continue department operations without the necessary funding for overtime, the Department will eliminate two (2) civilian positions and seek to re-program any available non-personnel dollars, as well as any eligible state and federal grant funds, to off-set overtime costs. The Department also expects to curtail patrol functions for the remainder of 352 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL the fiscal year. This will likely impact Department operations at every level. The Department will do their best to prioritize calls for service, to ensure that responses to emergency calls are met in a timely manner. However, responses to non-emergency calls, including nuisances, parking matters, and other calls not requiring immediate responses will likely see a delayed response time. Fire Department Anticipated Fire overtime requests total $184,000 and are primarily related to contractual overtime obligations. In order to continue department operations with the necessary funding for overtime, the Department will need to prioritize staffing and apparatus levels at each of the City's four fire stations, based on public safety needs. In some instances, we may not be able to staff all four stations for every tour of duty. However, we are not proposing to close any station, but rather to provide the Chief with the flexibility to staff apparatus based on available personnel in a manner that best serves the public safety, given the limited dollars we have to work with for the remainder of the fiscal year. In addition to the $337,347.00 the city is statutorily required to fund approximately $113,000 in anticipated medical costs related to injured and retired police and fire personnel. These funds will have to be paid through a combination of cuts in other departments and/or supplemental funding. In addition, there are one-time costs associated with public safety employee retirements that were not budgeted that will also need to be paid for within this fiscal year. School SPED Expenditures As you may recall, the initial proposal to the Council on the estimated Fiscal Year 2006 budget deficit included $350,000 related to SPED Out of District expenditures. Following my presentation to the City Council, I informed the School Superintendent that it was unlikely the City would have reserves to cover the anticipated deficit and that he should prepare a plan of action to pay for these costs within the existing School Department budget. Since the initial presentation in January, the School Superintendent has informed me that the estimated SPED Out of District expenditures deficit has grown to $907,000. Unfortunately, the City is not in a position to fund any portion of this deficit. There simply are not reserves available for this expenditure. As such, the School Department is preparing to make budget reductions in order to address SPED expenditures. This will definitely result in the loss of personnel and the Superintendent is working with employee groups, collective bargaining representatives and members of the School Committee, regarding the impact of any such staff reductions. Sale of City Parcels As you are aware, we are hoping to raise a significant sum to put toward the budget deficit through the sale of several city-owed parcels. I think we all agree that using one-time revenues to plug deficits in the operating budget is not sound fiscal policy. However, given that we have less than six months remaining in this fiscal year, I don't believe we have an option related to the use of revenues generated from the sale of properties. The specific parcels we are proposing to sell include the following: CITY OF SALEM 353 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL The Flynntan site. This nearly 2 acre parcel has been taken by the City for non-payment of taxes totaling in approximately $900,000. We will be disposing of this property via a tax title auction that will take place on March 22, 2006. No further action is required by the City Council. The Endicott School. This .5 acre parcel is located just up the street from Flynntan. This parcel is being disposed of by the Planning Department through a Request for Proposal process. In addition, we have a re-zoning amendment pending before the City Council to enhance potential re- development of this site in a manner consistent with the abutting neighborhood. The Council has already voted to declare this property surplus, which paved the way for finalization of the RFP and solicitation of potential interested developers. The RFP has been finalized and proposals will be due into the Planning Department on March 29, 2006. Following the review of proposals, a recommendation will be made to the City Council for final disposition. The Szetela Lane site. This nearly 1.5 acre parcel has been previously discussed as a site for a senior center. At this point in time, no action has been taken by the Council relative to this site. I have asked the Building Inspector and the Planning Director to commence the in-house process for surplusing this site, so that it may be sold through an RFP process. That process has been completed and I have submitted a request to have the site declared surplus, so that it too may be sold via a Request for Proposal process. I am hopeful that we can raise from $1.2 to $1.5 million from the sale of these three sites to apply towards the deficit. Parking Revenue Enhancements The Parking Board recently undertook a review of parking rates at the city's garage and on-street facilities. A survey of comparable parking facilities in other communities indicates that our rates are artificially low. We have several rate structures (daily, monthly, yearly) for many different groups (residents, non-residents, seniors). This can be confusing and is not always equitable. In addition, the operating hours of many of our parking facilities and enforcement of on-street parking has been less frequent in the evenings and weekends. Given the fact that Salem is a destination for tourists and diners, it would serve the City well to increase operational hours and enforcement time periods. As such, I have submitted a summary of proposed actions related to parking and have prepared draft Orders for the items requiring action by the City Council. Included in this summary is a proposal to add meters at the Salem Willows. These meters would be located in the lower parking lot and the revenue from these meters would go directly toward the cost of seasonal staff to assist with trash pick-up and bath house maintenance at the Willows Park. This funding initiative is more directly tied to the re-organization plan, but I did want to mention it here since it relates to parking revenues. I am hopeful that we can raise from $250,000 to $290,000 per year from the additional parking revenue enhancements measures mentioned above. 354 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL Administrative Fee Enhancements As you know, the City recently increased mooring and slip fees to off-set expected increases in the Harbormaster's budget related to improving training and hourly wages of Assistant Harbormasters. In addition, I have asked all Department Heads to review the fees related to licenses or permits issued by the City. As a result of this effort, I have proposed increases to some administrative fees for review and action by the Council which will be submitted at a later date. In most instances, you will note that the fee charged by the City was lower than similar fees in surrounding communities. That initiative is still underway, and I expect to submit additional requests over the weeks and months ahead. Staff Re-Organization Plan Overview With the City facing a $3.5 million dollar budget deficit, it is abundantly clear we will need to make cutbacks in order to survive through the end of the fiscal year. But, rather than approaching this situation in a manner designed solely to deal with the short term deficit, we have attempted to look at the current operational structure with an eye toward balancing the budget in the next fiscal year and beyond with a goal of streamlining management, enhancing accountability and improving efficiencies. While I am hopeful that the proposal will be a good start toward achieving those objectives, the prime motivation governing the re-organization is the reduction of costs. That fact, coupled with the need to address the deficit in an extraordinary short period of time, means that this proposal is a starting point and likely to be modified and fine-tuned over the next several months. It is far from ideal and will require substantial sacrifices and patience on the part of city workers, councillors and citizens. I am confident that with time and improved finances, we can build on this model and have as our primary goal the betterment of city services. Summary of Department Re-Organization Currently, there are in excess of twenty department heads that report directly to the Mayor. This number of direct reports makes it difficult to communicate with each other on a regular basis, much less develop standards of accountability for citywide operations. As such, I am proposing that related municipal departments be organized into several divisions, headed up by one existing senior staff member. In addition, several staff and service consolidations are proposed as part of this structure. I have highlighted each division below in bold type, with a list of the city services to be provided by each. The personnel heading up each division will be part of the Senior Staff Management Team. CITY OF SALEM 355 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL Fire Division Inspectional Services Division Civil Defense/Emergency Preparedness Building Fire Prevention Electrical Fire Protection Health Licensing Police Division Plumbing Police Services Harbormaster Weights & Measures E-911 Dispatch Animal Control Ambulance Service Engineering Division Capital Improvement Plan (CIP) Legal Division Engineering and Plan Review Claims and Judgments Recycling and Conservation Programs In-house Legal Services Salem-Beverly Water Board South Essex Sewerage District Water/Sewer Billing and Meters Human Resources Employee Benefits Hiring and Recruitment Finance Division Labor Relations Auditing Parking Switchboard and Telephone Operations Assessing Procurement Collector Treasurer Info. Tech. Recreation and Community Services Div. Public Services Division Council on Aging Cemetery Golf Course Central Motors Library Park and Open Space Maintenance Recreation Public Property Maintenance Veterans Affairs Shade Tree Winter Island Street and Sidewalk Witch House Traffic Maintenance Water and Sewer Maintenance Planning and Community Dev. Community/Planning/Neighborhood Project Conservation Commission Historical Commission Market & Tourist Commission Planning Board Salem Redevelopment Authority Zoning Board of Appeals The personnel proposed to head up each division are, as follows: 356 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL Bruce Thibodeau, Engineering Division Richard Viscay, Finance Division Chief David Cody, Fire Division Tom Leckrone, Human Resources TBD, Inspectional Services Division Elizabeth Rennard, Legal Division Lynn Duncan, Planning and Community Development Chief Robert St. Pierre, Police Division Richard Rennard, Public Services Division Doug Bollen, Recreation and Community Services Division For some departments, the proposed re-organization will be a stark departure from current operating procedures. For others, there will be only minor adjustments necessary. However, please bear in mind that every department will be impacted and your patience and cooperation will be necessary as we embark on this auspicious journey to reform internal city operations in a manner that will decrease budget liabilities, while maintaining vital city services. In addition, given the magnitude of the proposed changes in the operation, it will take time to put all the pieces in place. My expectation is that the plan will be fully operational by July 1st, with several components in place prior to that date. We will need to work with our municipal boards and commissions, some of which have overlapping appointment responsibility for department heads, and with members of the Council on ordinance amendments in order to finalize all the details related to the proposed re- organization plan. We are coordinating that information and will be before the Council and the respective boards/commissions to discuss these matters in more detail over the weeks ahead. Staffing Reductions and Timeline We have worked hard to avoid staff reductions where at all feasible, unfortunately given the current budget constraints it was impossible to reduce costs without substantial and meaningful layoffs of city personnel. We have strived to be as fair as possible with regard to staff cuts and the reductions reflect a balance between rank and file employees, as well as department heads. Layoffs will take effect as of March 17t", as we are trying to provide as much notice as possible to effected employees. In addition, we are working with the North Shore Workforce Investment Board (WIB) to provide training benefits and job counseling services to all laid off employees interested in utilizing these services. Please note that due to the nature of collective bargaining agreements and civil service rules, in some instances the individuals in the positions listed below will have seniority and will be able to "bump" a junior employee, thus remaining in the employ in the City albeit in a different post. Lastly, we have met with all the impacted employees and representatives from the respective collective bargaining units to inform them of the staffing reductions and to discuss impacts related to same. The staff reductions will take place in the following departments, by position as listed below CITY OF SALEM 357 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL Assessors Department Reduce (1) Principal Clerk Council on Aging Reduce Director of Council on Aging Park Department Reduce (3) Maintenance Craftsperson Personnel Police Reduce (2) Traffic Maintenance Personnel Public Works Reduce (1) Assistant Engineer* Reduce (1) Assistant Director Reduce (1) Fleet Manager Reduce (1) Administrative Assistant Reduce (1) Laborer Purchasing Department Reduce (1) Principal Account Clerk Recreation Department Reduce (1) Principal Clerk Reduce (1) Full-Time Winter Is. Manager to (1) Seasonal Winter Is. Manager *Position currently vacant Conclusion In closing, this has been an extremely difficult week. We have worked hard to limit staff reductions where at all feasible, unfortunately given the current budget constraints it was impossible to reduce costs without substantial and meaningful layoffs. We have strived to be as fair as possible with regard to staff cuts and the reductions reflect a balance between rank and file employees, as well as department heads and exempt staff members. I do not take this subject matter lightly and this surely will not be an easy time for the employees and departments impacted by staff reductions, or any of us remaining in place. While I am hopeful that additional cuts will not be necessary, I cannot say for certain that will be the case. I ask for your patience, support and sensitivity as we struggle with the difficult task of informing those that are impacted of these circumstances, while also trying to transition into a new staff re-organization plan. 358 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL Despite our current financial difficulties, I do believe that this crisis provides us with an opportunity to re-invent our local government operations to better serve the citizens of Salem The resulting re-organization plan is far from ideal, and will require substantial sacrifices and patience on the part of elected officials, employees and citizens. However, I am confident that with time and improved finances, we can build on this model and achieve our primary goal of delivering quality and cost effective city services. I look forward to working with the City Council to further discuss the impacts of the proposed budget deficit and staff re-organization plan. I appreciate the strong working relationship we have developed to date and look forward to our continued partnership as we work together to resolve our budgetary difficulties. #156 — MEET WITH FORMER FINANCE DIRECTOR REGARDING BUDGET DEFICIT Councillor Lovely introduced the following Order, which was adopted. ORDERED: That former Finance Director and School Business Manager Bruce Guy, be invited to appear before the Committee of the Whole to explain the past actions and participation in the current fiscal crisis. And that the School Committee, Superintendent and Mayor be invited. #157 — TAG DAY APPLICATION Councillor Lovely introduced the following Order, which was adopted. ORDERED: That the enclosed Tag Day application for Salem High School Color Guard be approved. #158 - (#137 4141) - GRANTING LICENSES Councillor Lovely offered the following report for the Committee on Ordinances, Licenses and Legal Affairs. It was voted to accept the report and adopt the recommendation. The Committee on Ordinances, Licenses and Legal Affairs to whom was referred the matter of granting certain licenses has considered said matter and would recommend that the following be granted PUBLIC GUIDE Mollie Stewart, 190 Essex St., Salem CITY OF SALEM 359 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL TAG DAY S.H.S. Girls Winter Track, February 25 & 26, 2006 S.H.S. Girls Soccer, September 16, 2006 S.H.S. Girls Soccer, October 14, 2006 TAXI OPERATOR Gerald Feldman, 116 Lafayette St., Salem Jamie Lopez, 25 Baker St., Lynn Albert Avallon, 98 Newbury St., Danvers #159 —APPR. CEMETERY— SEASONAL LABOR Councillor O'Leary offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation. The Committee on Administration and Finance to whom was referred the matter of an appropriation from "Trust Fund — Perpetual Care Interest Income" account to "Cemetery — Seasonal Labor" account has considered said matter and would recommend approval. #160 — (#494 OF 2005) - ORDINANCE RELATIVE TO SALARY CLASSIFICATION OF COLLECTOR / TREASURER Councillor O'Leary offered the following report for the Committee on Administration and Finance. It was voted to accept the report and adopt the recommendation. Councillor Bencal moved to amend the Treasurer pay group to 17. It did not pass by a roll call vote of 1 yea, 9 nays, 1 absent. Councillor Bencal was recorded as voting in the affirmative. Councillors Corchado, Furey, Lovely, O'Keefe, O'Leary, Pelletier, Prevey, Sosnowski and Veno were recorded as voting in the negative. Councillor Sargent was recorded as absent. The Committee on Administration and Finance to whom was referred the matter of an Ordinance relative to the Salary and Classification of Collector/ Treasurer has considered said matter and would recommend second and final passage by roll call vote of 9 yeas, 1 nay, 1 absent. Councillors Corchado, Furey, Lovely, O'Keefe, O'Leary, Prevey, Sosnowski, Veno and Pelletier were recorded as voting in the affirmative. Councillor Bencal was recorded as voting in the negative. Councillor Sargent was recorded as absent. Councillor O'Leary moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied. #161 -#165 — LICENSE APPLICATIONS 360 CITY OF SALEM FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL The following license applications were referred to the Committee on Ordinances, Licenses and Legal Affairs. PUBLIC GUIDE Hannah Diozzi, 20 Pleasant St., Salem Jeffrey Horton, 16 Garfield Ave., Beverly TAG DAY S.H.S. Softball, April 22, & May 20, 2006 S.H.S. Concert & Jazz Band, May 6, 2006 TAXI OPERATOR Hipolito Ozoria, 34 Prince St., Salem #166 -#167 — CLAIMS The following Claims were referred to the Committee on Ordinances, Licenses and Legal Affai rs. James Danforth, 16 Wentworth Dr., Beverly Roger A. Fruggiero, 11 Berrywood Ln., Salem #168 — CONSTABLE BOND The Constable Bond of Paul Minsky of 10 Orchard Rd., Swampscott, was referred to the Committee on Ordinances, Licenses and Legal Affairs and returned approved. (#81A) — ORDINANCE AMENDING MOORING AND SLIP FEES The matter of second and final passage of an Ordinance amending Chapter 10, Section 24, Mooring and Slip Fees, was then taken up. The Ordinance was adopted for second and final passage by roll call vote of 8 yeas, 0 nays, 1 absent, 2 present. Councillors Bencal, Corchado, Furey, O'Keefe, O'Leary, Prevey, Veno and Pelletier were recorded as voting in the affirmative. Councillors Lovely and Sosnowski were recorded as voting present. Councillor Sargent was recorded as absent. Councillor O'Leary moved for immediate reconsideration in the hopes it would not prevail. Reconsideration was denied. CITY OF SALEM 361 FEBRUARY 23, 2006 REGULAR MEETING OF THE CITY COUNCIL (#118) — ORDINANCE AMENDING SECOND HAND VALUABLES The matter of second and final passage of an Ordinance amending Chapter 34, Section 159, Dealers in Gold, Silver and Other Valuable Second Hand Items, was then taken up. The Ordinance was adopted for second and final passage. (#120) — ORDINANCE AMENDING COLLECTION OF OUTSTANDING PROPERTY TAXES The matter of second and final passage of an Ordinance amending Chapter 2, Section 466, Collection of Outstanding Property Taxes, was then taken up. The Ordinance was adopted for second and final passage by unanimous roll call vote of 10 yeas, 0 nays, 1 absent. Councillor Sargent was recorded as absent. On the motion of Councillor O'Keefe the meeting adjourned at 8.35 P.M.