FINANCE
CONTROL BOARD,
Present: Chairman Christopher Gabrieli, Mayor Charles V. Ryan, Robert Nunes, James Morton, City Council President Kateri Walsh, City Clerk Wayman Lee
Public Comment
Chairman Chris Gabrieli: My apologies to those of you who’ve been I appreciate your time for matters that require that amount of time on . I think you’ll hear some of those during the course of this meeting. We have a lot on the agenda today and look forward to getting into all of that. Before we do, we’ll start as we always do with speak-out. Mr. Lee?
City Clerk Wayman Lee: Our first speaker is Lois Smith.
Lois Smith:
Thank you and, Mr. Chairman Gabrieli and Mayor Ryan, control board
members, And, Mayor Ryan, you will be
missed, believe me. And I just wanted to
say that the decision to extend or deny School Superintendent Burke’s contract
is in your hands. The Springfield
Financial Control Board will decide what happens to 27,000 school
children. With continuing failure in the
city’s schools, there appears to be only one way to correct the educational
system. We must bring a new team of
players into the school administration starting at the top. We absolutely must apply techniques that are
successful in areas with demographics similar to
It is almost laughable to use MCAS scores as the measure of growth, success or failures. Students who don’t take the tenth grade MCAS test aren’t counted. And still we fail. The 51% drop-out rate is what we really have to look at. If they’ve dropped out before they take the tenth grade MCAS test, they aren’t even counted.
There’re many issues that pinpoint
the deficiencies in
Can this, after six tedious years under our present school superintendent be on the road to success?
Our first
obligation is to protect the health and safety of our children and next to educate them. Exercise mandated in our elementary schools
is a bare 15 minutes a day. Energetic
little children fight to stay awake, focus on studies, fidget and misbehave
resulting from being stuffed in their seats and being made to sit still for
seven hours of rigid school curriculum (and I do mean rigid) spelled out to the
moment, schools suggesting seeing a doctor for ADHD drugs; doctors prescribe it
without brain scans, resulting in consistent misdiagnosis of ADHD. We’re drugging little children with
methamphet
I’ve
researched ten simple things that could be implemented in schools. It would turn around the horrific truancy
problems, drop-out problems, failure-to-make-college-acceptance problems and,
most of all, cause teachers to want to stay in
I hope you
will do the right thing and immediately begin a search for a new
superintendent. I have talked with
experts who are willing to help in a search for a new superintendent. These are successful people with successful
schools. A group from this city will
tour a KIPP school in January (I’m going). I respectfully request to be part of
an impartial team to search and review applicants. As ms. Pepe said at the last school committee
meeting, that she and other candidates should not be part of a search or vote
on a new candidate as they each have f
Let me
leave you with one analogy.
I leave you with this thought: a new impartial committee. I want to participate. I respectfully ask to do that, and a new superintendent and a total reform and a reduction in administrative staff in that district. Thank you for listening to me.
WL: Our next speaker: Russell Denver.
Russell Denver:
Happy Holidays to the board.
Mayor Ryan, thank you for all your hard work. The citizens appreciate it. Thank you very much. I’m here to speak on the residential setting
of the tax rate and would ask that you reject the recommendation from Mayor
Ryan and the action of the city council yesterday. We believe that that action will further
deteriorate the business environment here in the city of
Very simple mathematics: the three
fastest growing business communities in
WL: Tim Rooke.
City Councilor Tim Rooke: Mr. Chairman, fellow members, Mayor Ryan and
President Walsh. I’m really here for a
simple reason and that is to thank Mayor Ryan for the leadership and the
responsible decisions you’ve made over the past four years to put
School Committeewoman Antonette Pepe: Good afternoon, everyone. I want to speak about a letter that was sent
to the governor by the school committee members. I was never notified nor consulted about this
letter. Neither was Mayor Ryan who is
chairperson of the school committee, but yet school committee members signed
this letter in protest of the control board’s action that you will make a
decision on Dr. Burke’s contract. The
part that bothered me—we have a mayor that wasn’t even consulted, myself...and
yet they allowed Chris Collins who hasn’t been sworn in, to sign this
document. they never asked Mayor-elect
Domenic Sarno; he never got a call either.
So my problems are is this: I did call the governor’s office and I said
to the governor...I told him exactly why none of us should be selecting or
voting on the contract of the superintendent being that we all have f
Secondly, how dare they say the MCAS scores are up? I asked the governor to take a look at the truancy. In one school from September to November, 10,000 times the kids were truant, in one school. In four schools, the number was 29,000. Last year the numbers were in the thousands. Let’s talk about also the students entering ninth grade and how many get to twelfth grade so how many percentages of twelfth graders are actually graduating? Half of them? So what have we got, 350, out of how many that entered and how many without a certificate of attainment?
So when this control board makes a decision today, I hope that decision is to do a search and I hope that decision is to undermine and upsert[sic] the authority of the school committee, because I think first of all the school committee acts independently when they don’t include the boss of all bosses which is the mayor in a decision like this. And how dare they justify what has gone on in this system for so many years. Look at the top heaviness of the administration. And before you renew any more contracts, please look at the people they are hiring, the people that are doing their jobs and not doing their jobs. That’s very important.
So I want to thank you very much
for taking this time out to hear what I had to say and I also want to like to
talk about the taxes a little bit. First
of all, my taxes have never decreased since I’ve owned They’ve consistently
gone up, sometimes at $400. at a clip one point. Secondly, we got hit with a trash fee. Third, the gas prices, the economy,
everything and it’s really taken its toll on the retired citizens. It’s taken its toll on the young f
CG: Thank you.
WL: Timothy Collins..
Timothy Collins:
Morning or good afternoon. Happy
holidays to everybody, Merry Christmas,
I’m here to talk about the
superintendent’s contract. The
Springfield Education Association, the superintendent and the current
administration have embarked on several collaborations, one of them with the Rennie
Institute. Paul Reville has been working
with us facilitating that even before he became chairman of the Board of
Education. I believe fruit has been
borne from that collaboration, that testament to that is actions of the Board
of Education this week. that should be
included, a continuation of that in the new contract. The superintendent and his administration has
committed to reviewing on an on-going basis the new teacher evaluation and
development system and jointly, collaboratively make any mid-course changes
that are needed. I think that needs to be included in the
contract for superintendent, especially since 1960 teachers are in their first
five years in the city of
Also the Romney finance control board in their draconian way of dealing with this in bargaining last time around, we didn’t have sufficient time to thoroughly discuss some things that we settled on, because we had to get raises for teachers and stop the bleeding. One of them is the scripted lesson plans, another is the salary schedule unlike any other salary schedule in the Commonwealth of Massachusetts and possibly in New England, that gives our teachers in their first 12 years only a step raise where every other teacher in the Commonwealth of Massachusetts...where we’re competing for teachers gets a step raise and a cost of living raise. Also, clearly defining the teacher leader position and the instructional leadership position. We have an agreement to do that with the current administration—that needs to be part of the contract as well.
I also think we need to revisit some of the actions of the school committee over the last few years: the Springfield Public Schools pupil progression plan, its course requirement for graduation for our high school students mandating that all our secondary schools go to block scheduling and some other issues. I think the superintendent’s contract ought to require a review of these things, because again, I don’t think sufficient discussion or they weren’t given their due diligence. I am convinced that input from the professionals, on line professionals that work in the school, was not part of those decisions.
I also want to say to you that I’m
concerned that I saw Mr. Connolly, a lawyer from Morgan Brown and Joy here in
So my major concern is the schools. We need to implant in the superintendent’s contract continuation of a collaboration that sees to it that the on line professionals have a voice in what we’re going to work on.
IU do want to correct the misnomer
here [sic] that’s been stated in the newspapers, the 50% drop-out rate. We have a high drop-out rate; it’s not
acceptable, but that actually a ninth grade graduation cohort rate which means that a student entering ninth grade at
Central High School who takes five years to graduate and get his diploma is
counted as a drop-out. A student who enters
WL: Victor Davilla.
Victor Davilla:
Good afternoon, Mr. Chairman, Mayor Ryan, Councilor Walsh, fellow
members. Good afternoon to all of you
and Feliz Navidad to all. My name is
Victor Davilla. The control board has
been an important tool in helping the city of
WL:
Russell Seelig.
Russell Seelig: Good
afternoon to all of you. My name is
Russell Seelig. I’m here to talk about
the Community Development Block Grant funding for fiscal year ’09 that begins
July 1 of next year. My understanding is
that the funding is in the range of $7million and is money that should be spent
in two development areas. It’s a
princely sum. My main emphasis is on the
reduction of blight and crime in the city...a little bit of economic
development as well. And I guess in
order for economic development to be a reality, for those businesses now in
And I’m asking the control board to influence the spending of some of
the $7million specifically for greater emphasis on blight reduction. There are two subjects. One is graffiti and the other is boarded up
vacant houses, both of which detract significantly when they’re present. There’s now an active graffiti remediation
program within community development in
Boarded up housing, another issue that gives an appearance of blight in
the city, and we’re likely to see more of them before this mortgage crisis is
over. They’re also a blight on
neighborhoods, and there’s probably not much that the city can do in terms of
proliferation of boarded up houses, but it’s important that they remain secure
and that their sidewalks are free of snow and ice in the wintertime and that
they are not made into dumping grounds.
I’m suggesting that some of the CDBG $7million be allocated for at least
a half time and maybe a full time exterior housing inspector who would have the
responsibility of writing up delinquent property owners and reducing the
blighting effect of these properties.
Many of these properties are in Community Development areas.
Boarded up properties are also a crime magnet as indicated in an article
that you have. It’s an editorial from The New York Times dated
Thank you very much for your time.
WL: Our next speaker is Matt Szafranski.
Matt Szafranski:
I’d like to begin by saying thank you, Mr. Mayor, for your dedication
and service. You have been a model of
integrity in the city that has been in bad need of it for a long time, and I
trust that history will remember you for your service as a model. It appears once again that our state is
preparing itself for lower revenues. It
will not be long before this begins to effect
WL: Public speak-out...go right into...
Control Board Meeting
CG: Thank you very much. Mr. Lisauskas, I guess we’re starting with approval of the minutes, I believe.
**MINUTES APPROVED UNANIMOUSLY.
Executive Director Steve Lisauskas: Thank you, Mr. Chairman. Before we begin, there is a tradition of the control board that we present a plaque to out-going members in appreciation of their service to both the city and to the Commonwealth. This meeting is the last control meeting for Mayor Ryan and for President Walsh. Their service has been substantial and beneficial to both the taxpayers of the city, the city itself and to the Commonwealth. In recognition of their service, I would like to present both of them a plaque in appreciation; it reads: Presented to Charles V. Ryan and presented to Kateri B. Walsh in recognition and appreciation of your outstanding and dedicated service to the Springfield Finance Control Board. [Standing ovation.]
And if I
might beg the board’s forgiveness for just one moment, I also have the...on
behalf of the board, the distinct pleasure and, frankly, the honor to present
another small token of [reads] appreciation for his service to Mayor Charles V.
Ryan for his service to the people of this great city, a service which has
spanned five decades and has made an invaluable and indelible mark and an
incredible contribution to the city, to the quality of life and to the people
of Springfield. His eldership and vision
and his dedication in the reconstruction of the city and rebuilding its
finances has taken
This print which I’d like to present now ran in Harper’s Weekly in1891.
CVR: I remember it well. [laughter]
SL: It is a profile that the magazine ran of Springfield, and I would like to read the inscription on behalf of the board if I may: “Presented this, the 20th day of December 2007, with deep appreciation from the members of the Springfield Finance Control Board and staff who have had the pleasure of serving with Charles V. Ryan, a statesman whose unparalleled service to the people of Springfield and dedication to building a city government that is honest, fair, and effective serve as an inspiration to us all.” Thank you. [Standing ovation.]
CG: Mr. Lisauskas, are you available for Christmas shopping more broadly? You’ve done a fine job there; I am way behind. [Laughter]
SL: I have some availability on Saturday if you’d like.
Robert Nunes:
Thank you, Mr. Chairman. I would
like to take this opportunity to offer my heartfelt thanks to Mayor Ryan for
his years of service to the residents of
I have
often said to my friends back home in
CVR: Thank you
so much. I’m not sure whether there’s
any more of this. Let me just say that it’s been just a great privilege. It’s everything I ever hoped that government
could be, and I want to say to you, Bob, a mayor who I have great respect for,
six term mayor of
Whether it was the old board or the new board, we have adults who make decisions based on the data and the facts before them without recrimination, without politicking it, without getting even with anybody, but just because it’s in the best interest of the city. Why can’t it always be that way? Why can’t our boards and commissions always do it that way? Because look at the progress we can make when we do it in that fashion rather than another way.
But your words of affection and appreciation. Bob, mean a great deal to me, because they really symbolize...you know, we never knew each other until you walked in this building some seven months ago, but our friendship has been quick and instant, and I think a significant mutual respect. James I’ve known for some years and admire him so much. Chris is one of my heroes. And then you r predecessors on the board—it’s been a special time. Kateri , you and Domenic and Tim and Jose, each one of the representatives of the council, they’ve been precious.
And so it’s all a learning experience. It’s all something on a journey toward...our goal has got to be good government. We’ve got 150,000 people who count on us to do things the right way, the intelligent way and the responsible way, and I’m just hoping that some of this.... Control board isn’t here forever. Control board’s on a short leash right now, but when this all goes away, I’m just hoping that the men and women who represent this city on the school committee and in the city council will understand that for a brief time there was something that worked here, and that was noble and fine and did a great deal of good for the people of Springfield. That’s our ultimate and fundamental obligation.
And so I...you’re very, very nice to do this. I’m going to have to buy a bigger house for all these plaques, but it’s been a...it’s been a great trip and now I’ll go and do some other things with a lot of people I love very, very much and who I really haven’t paid enough attention to over the last few years. God bless you all and thank you so much for these honors. [Standing ovation]
CG: Well, I would only add that something that I never would have thought of as an inspiration to me in a moment of public opportunity to speak is in the minutes of the last meeting where member...it says member “Nunes remarked that he agreed with everything member Morton had said and he had nothing to add.” So please add to the minutes member Gabrieli, Chairman Gabrieli, agrees with everything that has been said by member Nunes, Mr. Lisauskas and others. Thank you for the opportunity to serve with you. I look forward to the opportunity to continue to provide that service in the spirit you just said with your successors. But it has been a[n] action packed period of time great learnings for me, great inspiration for me personally I know that’s how... Don’t mean to steal your thunder [indicates James Morton]....so speak for yourself, Mr. Morton.
James Morton: If I could have 30 to 60 seconds, I’ve worked for you, Mr. Mayor, and it was an honor. I now find myself working side-by-side with you, and it is an honor. When history is told, I hope that it includes the true history of our city under your leadership. You’ve done great things for all of us and we’re lucky to have had you as mayor during this really challenging time. Our future is incredibly brighter because of the hard work that you have done and the leadership that you’ve shown. You know we couldn’t be in a better position than we are right now at this moment in this time in our history. And a lot of that has to be credited directly to you, because you have been the leader of this city. Despite the presence of the control board or not, you were always the leader of our city, and where we are today has a lot to do with you. And if you can be described in a single word...in a signal word, it would be integrity, and that’s what you’ve brought to city government. And I respect you for it and have deep love and admiration for you, one man to another.
CVR: Thank you.
City Council President Kateri Walsh: I’d certainly like to add to that, to concur
with everything that has been said here today about the Mayor. Certainly, James, when you think of
integrity, you think of Charles Ryan not only in his career in the law, but his
career as a public servant. But I’d like
to add a different perspective. What I
like so much about the Mayor was his f
CVR: You’ve worn me down. [laughter]
CVR: Thank you. We got to get going on this agenda?
CG: Let’s go to the agenda. You would have wanted it that way. [laughter]
Update: Police
Commissioner Selection Committee
SL: Yes. Thank you, Mr. Chairman. The first item of business on the agenda after approval of the minutes is an update regarding the police commissioner selection committee. The members of the committee...just wanted to provide an update for all the members of the board. There has been some significant due diligence done, some significant work done, to identify five members of the committee, as you know, Mr. Chairman.
The five
members of the...who have been selected as members of the committee are
Mayor-elect Domenic Sarno (who’s here with us today); Dr. Lucie Lewis, a member
of the community who’s a senior level college administrator. (With education, of course, serving as one of
the most important businesses, if you will, in
The first of the two public safety
experts will be Chief Alan DeNaro. Chief
DeNaro is the current police chief in
And the fifth member is a gentleman by the name of Tom Robbins. Mr. Robbins is the retired superintendent and colonel of the Massachusetts State Police. He has decades of law enforcement experience that have given him both a breadth and a depth of experience and will make the membership of the committee...I think he can bring a real strength to it.
As a note, we have already received
a number of applications from the position...for the position...of police
commissioner. We have focused regionally,
but in the age of the internet, of course, we’re receiving applications from
other areas as well, and two of the applicants right now actually are senior
level managers from the largest and most diverse cities in
CG: Thank you very much. I’m pleased that we’ve been able to put together what I think is an excellent committee very quickly. I thank Mr. Morton for agreeing to chair it. It’s a very, very important process, and I think his link to this committee as well as his independence of thought and judgment will be essential, and I thank him for that. (It’s not as if there’s not plenty of time already spent on this work.) I think in having Dr. Lewis as a member of this community join in, of course, Mayor-elect Sarno electing to serve in his own capacity will give a strong voice locally. I believe the two police...experienced people we’ve been [unintelligible] to the table will bring technical expertise. We are very determined to stick to this February 28 goal. I congratulate you on getting an advertisement up even before the committee was selected so we have candidates, and I’ve discussed with Mr. Morton the processes we hope to go through staffed by you and the staff of the control board to move this along on that pace and to make sure that Mr. Fitchet who is a...automatically a finalist as well as any other finalist developed from the pool are properly assessed, publicly interviewed, and we make....get a recommendation to this control board by that deadline. I look forward to getting that done. Public safety remains crucial here. Thank you for expediting that work.
Questions from any of the members? I’d also, just for the record, remind that members of the control board not on the committee are welcome to find ways to participate in the process as we requested the last time, so whether those are current or....subsequent.
KW: I’d just like to...are we voting on this?
CG: No vote, just an update.
KW: I would just like to say that I’m opposed to the need for a selection committee. I believe we already have a candidate that we need, and that I believe that our city ordinances allow the mayor to be the appointing authority. Do you want the plaque back?
SL: No.
CG: Yes. [laughter] From what I read in the paper, you’re trying to expedite my plaque. [laughter] Next item?
KW: Don’t believe everything you read.
CG: That’s true.
Vote on Contract Extension: Eaton Planning
SL: The next item on the agenda, item IV, is a vote on contract extension for Eaton Planning.
Economic Development Director David Panagore: Mr. Mayor and board members. And, Mayor, thank you very much for the...my opportunity to serve with you over the past three and a half years. It’s been a tremendous experience. Thank you.
Board members, what we have before you this morning...or this afternoon now...is a request to amend a contract with Eaton Planning. For the past approximately two years, we’ve been engaged in a modernization and revision of the city’s zoning code. This is a comprehensive revision of a zoning code that substantially exists in a similar form entered into probably for the last 50 years to create modern items such as a single use table to modernize the zoning to provide for site plan review and other activities. There’s been a 17 member public committee made up of neighborhood people, business leaders, lawyers, planners. They’ve met for over 900 hours over the past two years and more than 20 to...about 25 sessions (depending on how you count it). They’ve been led in this endeavor by Eaton Planning and Chris Eaton, and she’s basically been spending the last two years working on this zoning.
We have funded their work, Eaton Planning’s work, through $110,000. worth of state grants, state technical assistance grants. We’ve extended...originally we got $90,000. from the state, but because they...in two grants (and they normally don’t award two grants, but they believe in our project.) They added an additional $20,000. to that in this past year. This work, given the size of the undertaking, requires more time and, in order to have an appropriate public process, we want to make sure over the next say, five or six months, that there’s appropriate time to bring this before the public, to have the public digest it, to provide public meetings and public comments. And the contract entered into under the provisions of Chapter 30B, the state procurement law, provides limitations on how much you can extend a contract. It does not contemplate circumstances such as these where you get into, essentially, what is a pin-hole of a project. (You begin to dig into something and discover there is a tremendous amount of work in cleaning up that needs to do. There are far more rooms up in the attic that need cleaning.)
Every week right now, the planning department spends approximately six hours on finalizing the nits and the gnats, because you need to cross the “t’s” and dot the “i’s” in any planning process, because zoning personifies the law of unintended consequences. If you push down one place, it pops up some place else.
So in that regard, we’re before the board requesting $38,500. in addition to...oh, $20,000 in addition to the $110,000. currently existent to the contract. These would be from city funds from the planning department. They currently exist. With these additional funds, we’d be able to go public with this project. The board has the authority to enter into this under Section 9B of Chapter 169 which provides the authority to the board to enter into sole source contracts and would be an amendment to the existing contract for Eaton Planning. We ask the board’s approval on this, and I’m prepared to answer any questions you may have.
JM: What’s the amount that you’re looking for?
DP: $20,000. on top of the...there’s an existing $110,000. $20,000.
KW: May I ask
you, at this point in time, how this study impacts any zoning responsibilities
or authority of the
DP: It’s in draft form right now. The responsibilities of the city council...what we’ve attempted to do is to expedite the process, to provide site planning review at a technical level, to provide some site planning review in permitting by the planning board, and to maintain with the city council those projects of citywide high impact basis that, by their nature, would wind up in that body. (No matter what, you would find those projects there.) So it would be a shared authority between the bodies, but, again, it would...but again, it’s in draft form as developed by the committee, and it will be brought before the public for full review.
In no sense can I indicate that that is a final form or a final decision. In the end result, it will be what would be enacted that would be the law. Right now, it’s just a policy discussion.
CVR: David, did you indicate in your remarks how long it is...how many years has it been since a revision of this scope has happened of our zoning ordinance?
DP: Since it was originally passed, there was a major revision in the early 70s. There was some revisions of the residential codes in the mid-80s. But in terms of the entire zoning code, it has never actually happened. It has been, in that sense, a sedimentary. And so every layer just gets keep being added on top and when we not want a new zoning area, we just throw a new zoning area in. So the way the sections relate....
Modern code is now based around the idea of the look and the feel—it’s called “form-based code,” because what you’re most concerned about is not necessarily what happens inside the building, but you’re concerned about the impacts on the street (how many cars arrive, how far it’s set back from the street, what’s the look and the feel of your public realm). And we would be bringing those aspects to the zoning to preserve our neighborhoods, to allow for our industrial parks, but then as well to simplify it for developers. Right now, if you’re doing development in this city and you have a project, you cannot find a single place in our zoning code to look and ask whether your project is allowed. You need to flip between code sections repeatedly. Creating a use table alone would be a tremendous asset.
CVR: Well, I think it’s wonderful that we’ve gone this far really. I think the state’s been very good to us on this, front-ending this. And so some $30,000. I think is what you’re looking for now, and that’s going to get us to the finish line, is it?
DP: Yes, and I do apologize. I did misread. You are absolutely correct, Mr. Morton, it is actually...$20,000. was the amendment and I was right when I spoke the first time: $38,500. I do apologize.
CVR: But that will get us to the finish line.
DP. That will get us to the finish line.
CVR: That’s excellent.
**
Update – Litigation
SL: Thank you
. The next item on the agenda is update
regarding litigation. As members of the
board know, the city enters into a license agreement with a company, in this
case Comcast, to provide cable television services in
That review
of the contract (it was a very fulsome review of the contract) has found what
we believe to be substantial areas of non-compliance on the part of
Comcast. We believe that Comcast is passing
along to customers in
The city is planning to initiate
litigation on behalf of cable subscribers of
CVR: I’d like to add to that. There’s no question about it. The documentation is very clear that when Mayor Albano, representing the city, entered into this contract...some seven years ago, is it?
It was clear that certain costs would not be passed through to the subscribers, meaning the 30,000 or 40,000 households that pay the ever-increasing cost of cable television. It’s a clear as the nose on your face, and yet it came to our attention some six or eight months ago with the help of counsel that we had engaged to begin to advise us looking forward to a re-upping of the contract some two or three years from now that we had this very, very serious problem.
We have met two or three times with representatives of Comcast to no avail, and this is a very, very serious problem, because with 93A implications which really means unfair business practices which allows for the treble damages. And we felt we had no alternative in light of their refusal to satisfactorily come forward in a compromise negotiation, but to move forward. I would think also that, as the city, some two and a half or three years from now, looks at who it’s going to make a long-term cable contract with that, really, the conduct of Comcast in this situation is going to be a very, very relevant factor. So it’s a serious matter, and I think that we’re doing the responsible thing in moving forward in this lawsuit.
SL: Thank you very much.
Vote on Appropriation
–
SL: The next
item on the agenda is a vote on an appropriation for the
DP: Board chairman,
Mr. Mayor, council president, board members.
You have before you executive order 1220-06. In addition to that, a aerial of the site of
the
The board request before you would
facilitate the creation of a resource center on
This would represent the city’s commitment to the project of $2million to the project. The...there’s been on-going work with Friends of the Homeless. Bill Miller, the executive director of Friends of the Homeless is here as is our project manager, Gerry McCafferty...the...to answer any questions you may have. Bill and Gerry have been working very closely together, and over the past several weeks, we have been negotiating a land disposition agreement. The proposed site is city land. This would be subject to a land disposition agreement where the city would have effective controls over the design, pieces of the layout, your general requirements for the development project. They’re on about the fourth revision of the draft of the land disposition agreement, and they are down to the nits and gnats right now.
The state is looking forward to being...to seeing a proposal being made by February for the low-income tax credits, so timely action by this board would allow us to build...to be able to come before the state with the financial commitments in place. We would also be providing this funding on an on-going basis as the construction progresses. The cooperative relationship with the Springfield Housing Authority...again utilizing all the tools we have available working with the Springfield Housing Authority, we would hope to be able to work with them to be able to provide funding. We are continuing to work out that relationship right now. Project management services would be through...for the city, would be available through...under Gerry McCafferty’s auspices. And I’ve been working directly with Friends of the Homeless and Bill Miller to ensure that the project management leadership team at Friends of the Homeless is of the finest quality. And I come before you today having met personally with a number of the candidates and potential people on their team and can say that they have put in place a best of brand team.
With that, I come before you this morning to answer any questions and to request funding of $2million towards the development of a homeless resource center in Springfield as part of the Mayor’s strategy for ending homeless in the community.
CVR: Mr.
Chairman, this is a red letter day and one we’ve been pointing to for a long
time. Within two weeks of [my] taking
office in January of 2004, two men froze to death here in the city of
I can’t tell you how grateful the city is to Governor Patrick’s initiative and leadership in providing $2million. And this again was a negotiation; this was a back and forth because we felt that, responsibly, we could and should put in the $2million you’re asking for today, but we knew we needed more help, because we had to get to $5million or $6million. And so we challenged the state to come up with $2million. The governor met that challenge, and then it’s very important to acknowledge and understand that the business community of this city is raising a fifth million dollars. And I can tell you, and it’s up to the people who are running the campaign to give whatever details that might be asked for, but that’s going very, very successfully, and I anticipate...I’m very optimistic that that’s going to...that’s going to happen also.
So you put it all together and you
put it under the leadership of Gerry McCafferty who’s done yeoman service and
Bill Miller and Bob Carroll and so many others up at the Friends of the
Homeless, and it’s a new day. And it’s
one that to me, we have a responsibility to worry about the humanitarian
concerns of this community. We didn’t
write the script around here, but we have to be responsive. And this, along with our Housing First
strategy, takes us a long way to dealing satisfactorily with a population that
is significantly underprivileged, but have been really forced to be
nomads. They vacate the shelter at 6:30
or 7:00 in the morning and you can’t come back in the door until 6:00 or 7:00
at night in the dead of winter. This is
not...this is not the way it’s supposed to be.
So I’m proud as a citizen of
KW: I second that.
CG: Any discussion?
RN: Do you have a time frame scheduled?
DP: Gerry[McCafferty], could you speak to that?
Gerry McCafferty: [speaking from the audience] We expect, provided all funding is in place, we expect ground breaking in the spring with an opening about a year and several months from now.
CG: From now or from then?
GMc: From now, so we’re looking at February, March of 2009 to open.
JM: Is there anyone here from the business community that can talk about their efforts?
GMc: [looking around the room] There is not. I can speak to some of that. I think they’re waiting to release themselves some of the fund raising they’ve done, but I believe they’re more than half way to the $1million mark. In addition, I think they are securing financing---some of this will be coming in terms of pledges, and they’re in the process of securing financing to get the $1million into the project now so that the pledges can be paid out over years.
DP: Under the leadership of Bob Schwartz of Peter Pan Bus Lines and Peter Straley, CEO of New England Health...Health New England.
CVR: And at least in the early stages, the generosity of Baystate Medical and Health New England has been outstanding, and so you have to have a pace setter in all of these things. They certainly fill the definition of pace setter in this drive for $1million. Yeah.
CG: I want to join in with you, Mayor, in saying this is one of the first issues that this new membership took up. And I do feel that both the city’s leadership and yours in setting out this goal to work something that is truly a public responsibility to address with both, as you say, humanitarian and, I believe, public safety and economic redevelopment benefits to the city, and it was certainly a fine moment when the state elected to match it and the private sector stepped up to a significant amount and it is a pleasure to have the financial capability to make this kind of investment and I’m enthusiastic to “third” your motion.
KW: Mr. Chairman, I’d like to ask a question. I mean February 2009 seems a long way off for...as the Mayor said...forced to be nomads. I mean is there....is there some other plan in place for temporary shelters so people do not have to be out on the street all day?
GMc: We have an existing day shelter. It’s very small and over-crowded and really doesn’t give us the opportunity to do the kinds of services we should be doing, and there are many people who don’t want to go there because it’s crowded, so we’re doing the best we can for this year, but are very much looking forward to this new facility opening.
KW: Thank you.
**MOTION PASSES UNANIMOUSLY.
Vote on Appropriation - Elimination of Liability from 2003 Furlough
SL: If Solicitor Pikula will please join me. The next item on the agenda is the 2003 furlough or repayment of the 2003 furlough. As the board is aware, in 2003, the city was clearly in financial distress and was required to take a number of actions to attempt to staunch the financial losses, one of which was a significant number of layoffs and another of which was to create a voluntary furlough program under which employees were entitled to or were allowed to delay two weeks of compensation for....(there are three different plans,)...but for, generally speaking, three weeks of vacation or other forms of compensation. So before you in122007 is an order requesting an appropriation to eliminate some of that furlough liability and, Ed, did you want to speak on it?
City Solicitor Ed Pikula: Sure. I could speak a little bit about this. The furlough plan was put into effect in 2003 when we faced a severe cuts from the Commonwealth’s aid that was being provided. What employees were faced with was a choice of two options. Option 1 was: “You’re going to work for two weeks without pay, but we will pay you when you separate from employment” or (and this is where we’re at now) “[You’re going to work for two weeks without pay, but we will pay you] when we have sufficient funds to pay you at the rate you’re making then.” Option 2 was: “Work two weeks, not get paid, but you can have three weeks of vacation,” and the problem was you had to use up that vacation by....and the deadline’s coming up the end of June 2008. So there’s a window to use those three weeks. This vote will eliminate the liability as to the Option 1. The people that have Option 2 would still have available whatever vacation they may have, that’s not being bought out. The only thing that’s happening here is to remove that liability from the books for the furlough pay that people have deferred.
[Turning to SL] Do you know the amount?
SL: I’m sorry, $169,092.22.
**MOTION PASSES UNANIMOUSLY.
Confirmation of
Appropriation – Putnam Project
SL: Thank you
very much. The next item on the agenda
is confirmation of appropriation of the Putnam Project. As the board may recall, in November of last
year, the control board (the prior control board) authorized the expenditure,
the issuance of bonds to finance a number of municipal projects, one of which
was the construction...the city’s share of the construction cost of the
The Massachusetts School Building Authority has indicated their preference that they would like a separate appropriation of that money just to make sure that we’re able to...this is part of making...entering into an agreement with the Commonwealth for their 90% reimbursement for the project. The one note, the original bond issuance for this project was $12million. The requested appropriation is $12.1million, still coming from the bond fund. The Commonwealth was able to provide us some additional reimbursement, so we have to match that additional reimbursement with $100,000. Ninety cents on the dollar is pretty good reimbursement, obviously. So my recommendation is that we do need...that the control board authorize the $12.1million appropriation as requested in order 1220-08.
**MOTION PASSES UNANIMOUSLY.
Vote on Construction
Management at Risk Method of Construction for
SL: Thank you
very much. The next item on the agenda
also relates to the Putnam project, and I would ask that Kathy Breck and Rita
Coppola please step to the mic. It is
with regard to the construction...adoption of a construction manager at risk
construction method for the
CG: Good afternoon.
Director of
And what it involves, basically, is that the city is allowed to pre-qualify a G[eneral] C[ontractor], if you will, for the project. It’s a benefit for us is, because we don’t have to go with the lowest bid on many projects, and projects such as this $120million to have to be bound by the lowest bid sometimes is not always in our best interest. So in this particular method, we bring the construction manager management at risk company on board during the design process, so that individual company is able to work with the architect which is also a benefit for the city, because we’ve got different eyes looking at the project. We’ve got construction eyes as well as architectural eyes and, of course, the owner looking at the project.
And then at some point mutually agreed upon by the architect, the owner and the CMR, as they call it, something called a “guaranteed maximum price” is set. And that’s an agreed upon price that the construction manager at risk company gives to the owner based upon...the law says it has to be set at least 60% point, but, in our benefit, we’re hoping to set it more at the 90% point of design, 95% even, so that we have a really good, firm G[uaranteed] M[aximum] P[rice] set by the CMR. That being the case, we feel comfortable at that point, the 90%, 95%, that we’ve got a really good handle on the budget.
And then what happens is the construction manager at risk company, who has all along been working with the designer, now becomes our GC for that agreed upon price. He, that company, then along with the owner and the architect pre-qualify subcontractors. Once again, to our benefit because we’re not having to select the low bidder. So these are sort of the benefits to it, and like I said, a project of this magnitude is something that we feel very important to do by this method. The Mass. School Building Authority encourages the use of this method, and that’s another very important point to bring up since they are funding 90% of this project. So I don’t know if Kathy has anything to add to that.
KB: Well, in the executive order that the board is being asked to review today, there are specific items that we would ask the board to approve in order to file our application with the Inspector General’s office for approval to use this method of construction for the project. And those are set out in order 122009 under the “now therefore.” The first bullet is that the finance control board would authorize the city to enter into a contract with a construction manager at risk firm for the Putnam project. The second bullet item is to approve the construction management plan which I hope is attached to the order, and that should be attached as Exhibit A. And that’s a plan that Ms. Coppola has worked very carefully with the city’s construction manager to put together, and it’s required by the Inspector General’s office as part of the application process, and that’s another thing that the board needs to approve in order for us to submit our application.
And then there are certain findings. In item 3, the board is being asked to make certain findings as to why this method would be a good method for this project and why the city would like to move forward with it. For the very reasons that Ms. Coppola’s explained: being able to pre-qualify and select the construction management at risk firm on the basis of their experience, their reputation, record of controlling costs, and not simply by the lowest bid; that the construction manager at risk will be able to provide pre-construction services during the design phase (which is fantastic for the city and, hopefully, will avoid a lot of costly re-design issues down the road).
We do have this opportunity to set the guaranteed maximum price; it’s a snap-shot in time; it’s the price as of the moment it’s set. Things may change down the road, but it’s an advantage to the city to have that. We can send certain packages of the work out to bid earlier than others to try to keep an accelerated scheduled for the project (if it’s a long-term project). We can monitor and audit the construction costs since it’s an open book, open price method of construction. It will foster a spirit of cooperation between the city, the architect, the construction firm and the contractors, because everyone’s got some ownership of the project. And last, but not least, the Mass. School Building Authority does encourage these.
So we’d ask the board to approve the executive order and this will enable the city, once we have our architect under contract which, hopefully, will be happening very soon to submit our application to the state. And, if there are any questions?
CVR: You indicated that the School Building Commission had voted for this?
RC: Yes, in a June meeting they voted on this.
CVR: Yeah. Would you...
KB: I think that following a presentation that you attended.
CVR: Up at
KB: Yes.
CVR: OK, fine. Let me ask you a question. I mean I certainly endorse what we’re doing, but I think, in the interest of full disclosure, what is the down side if any? I mean, how could anything go wrong or is this just all up-side, a win-win-win or is there a risk that these folks [indicates the control board] should know about?
RC: In my opinion, Mayor, the...there are certainly more up-sides than down. Let me say that first. The down side could come if we set what they are terming the “guaranteed maximum price,” if we set that too soon, and I just want to make sure that everybody understands what that is. Guaranteed maximum price...like I said...according to the law and you can set it at 60% must---the design must be at least 60%, OK.
CVR: Right. Well, won’t you have control over that?
RC: We do; we have say in that. Yes.
KB: The city will decide when they can...
CVR: So it’s nothing that’s going to...
RC: That’s exactly right, yes, the city ill decide.
CVR: That’s not going to happen over your objections.
RC: It will not, but, however, if it...I’m trying to answer a more general question of a down-side to this process. The...what we have learned one of the down-sides could be if that GMP is set too early, you do not get a good feeling. We do not anticipate doing that.
Kathy and I attended a conference recently with regard to this, and, in that conference, the moderator basically sort of emphasized to the crowd that you really should set it as late as possible.
No, I...I can’t think myself of a down-side to tell you the truth...of, for a project of this magnitude.
KB: Under a traditional system of bidding, you do have the pool of subcontractors sharpening their pencils and trying to get the lowest bid possible to submit and then you have the general contractors who....that need to select from that pool of sub-bidders and then they’re trying to sharpen their pencils and put in the best...their lowest bid.
But what I’ve found...I’ve been counsel for the School Building Commission for about 17 years, almost 18 years, give or take a few, and what usually has happened in our school building projects is that the bid price is not the project price. There’s always change orders and things that come up that weren’t anticipated or the contractor finds gaps in the design. That is always costly.
CVR: Yeah.
KB: You know, you have to add back in, so that what’s great about this process is that they’re working as a team, the designer is designing the project and the construction manager at risk is working with the designer to help with value engineering, constructability reviews, looking at different materials, and maybe phasing and sequencing of work to try to get a project that the contractor can make a profit on, but a legitimate profit and not an exorbitant amount of money, but the city gets to look at the books and find out exactly what it’s costing. And we may the construction manager the cost of the construction plus a fee that will be in the contract.
CVR: Rita, do you have any data that will...or anecdotes as to how widespread this method of construction is whether in the public sector or in the private sector?
RC: Well, in the private sector, it is being used quite frequently, yes. The public sector, it’s something fairly new. D[ivision] of C[apital] A[sset] M[anagement] does use it on a fairly regular basis, and DCAM has shared with us their success in using it. But the private sector...yes, it’s used quite often with a lot of success. Our...the architect that we have chosen for Putnam has used this process in the private sector, and they have also heralded the success of many of their projects with this CMR.
CVR: Good.
CG: We have 90% school building assistance.
CVR: Yes, on this project.
RC: That’s correct.
CG: About $220million.
RC: $121million....$121, yes.
CG: I assume the dilemma in part is, since the goal here is to get a true price, not a low bid that could get moved up and the construction managers at risk above that price. I assume the dilemma is as the spec gets developed, they may come back and say it’s more than $120million to get the technical vocational high school we want.
RC: Well, Mr. Chairman, just keep in mind that the $121million is the project cost. It does include the architect, OK? Right now, we have set a preliminary budget of $95million for the construction (which he has done), and we have directed our architect to submit his fee based on a $95million construction (which he has done) and we do anticipate that after the study phase, he returns the study phase to us with regard to, you know, the footprint could go here, it could go here, we recommend keeping this wing, but not this wing, whatever the choices might be and the School Building Commission votes on, that dollar amount, that $95million might change, yes. The architect has shared with us thus far that, in their opinion, they do not feel the $95million is sufficient, but they’re going to design to that, so...
KB: And they’ll be doing cost estimates at every phase to try to do a reality check to make sure the design will come in within our budget.
CG: I assume that’s...that by-play between the design and the costs, as opposed to happening, in a sense, over time as the cost potentially ascends over the original bids, happens in the design process, right?
RC: Yeah, you know...yes, and that’s a good point to bring up, because one of the really positive points about the CMR is that the...of course, as you may know, we do have an owner’s project manager for this project.... But the owner’s project manager, the architect, and the CMR are required to come up with cost estimates, three different, independent cost estimates in each phase that get compared against each other. So it’s... it is very good, because instead of the architect doing it sort of in a vacuum, putting it out to bid and then the bids coming in possibly too high, we have the G...the general contractor right in on the design phase and they can do their own cost estimates and then at that point say to the architect and the owner “Hey, you guys are way off on this line item” or, “You know, we think we can do this better here.” So it’s a real cooperative, positive effect that I think, at the end of the project, we’re going to reap the benefit (the owner will).
CVR: One of the speed traps that I think that goes into the thinking on behalf of this is that in the, let’s say, five to ten to twelve years ago, a series of schools were built. The overall experience was very, very bad in that there were enormous change orders so that you thought you were here and all of a sudden it was there. And your friend Tim Rooke is extremely eloquent on that, because it’s bothered him and he was in the city government for most of that time and felt that it was just plain out of control. So I do think that this, especially with the architect and the contractor working together and getting as far down the field as they possibly can, is going to, at least theoretically, eliminate the danger of some of that. But I think it’s something that the city government’s got to be enormously vigilant about, because school after school, after school, we got burned, and it cost us a tremendous amount of money.
RC: Mmm hmm. And we don’t anticipate that happening. Yeah.
CG: Mr. Morton?
JM: Do you have any thoughts on how we’re going to go about selecting this construction manager? What’s the process?
KB: There’s a
statutory process that applications through.
There’s a very detailed process set out in the general laws for the
pre-qualification that’s actually a two-phase process. First, there’s a pre-qualification process
that general contractors that who’d be interested in participating submit their
qualifications on a standard form. And
it’s a very thorough...it asks about their financials; it asks about their experience,
you know, their...on similar projects, their personnel. (Rita’s probably more f