FINANCE CONTROL BOARD, December 20, 2007  

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 Springfield.  It will take a huge effort to break down a top heavy administration, teach and instill new techniques.  At the moment, we have a catastrophe in our hands. 

 

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 Springfield schools.  Among them, a recent target among parents and students is that administration has failed to protect children’s health and safety.  Springfield is in the lowest rung for meeting federal health standards.  We have a crisis in diabetes 2, a crisis in brittle soft bones, a 42% obesity rate---way above national average, heart attacks on our sports fields from ADHD drugs weakening hearts, violence in schools, gunshots on our streets, and a 51% drop-out rate—people who can’t read or write and can’t get a job.

 

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 methamphetamines to control them in unnatural circumstances.  It’s the worst drug on the streets with the most serious complications.  That’s what Ritalin and Adderol are, methamphetamines.

 

            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 Springfield.  We could educate our children.  If you’d listen to one experienced teacher speak at the last school committee meeting, you would know how bad it is for teachers here. 

 

            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 family members working in the Springfield school system although her daughter did it on her own and she is a teacher...other things be as they may, the school committee appears to be and, in fact, may be unduly influenced.  Time is of the essence. Can this board please share with the public what you’re doing about our school superintendent?  (And I hear you’re going to.)

 

            Let me leave you with one analogy.  Kobe beef is a rare, exquisitely tender meat produced in Kobe, Japan.  You see, they put a little normal, energetic calf, a vulnerable calf that can’t speak for itself in a pen so that it can’t move, so it doesn’t develop muscles.  They feed it beer.  That little calf will never run in the sunshine, feel soft grass under its feet, little breezes waft by drifting clouds.  And so it’s for our little children...so it’s the same for our little children faced with seven relentless hours stuffed in classroom seats as MCAS drones on. 

 

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 Springfield.  Last year’s rate was 31.91.  If you went on the D[epartment] o[f] R[evenue] website, you will see three communities in Massachusetts with a business tax rate of higher than 30: Holyoke, West Springfield and Springfield and only twelve communities with a commercial rate higher than 25.  So, if you’re trying to locate a business here in Massachusetts and you do a quick search on the DoR website, you will see Springfield as having the third highest tax rate.  To increase the rate does not send a positive message to the business community here in Springfield. 

 

Very simple mathematics: the three fastest growing business communities in Western Massachusetts all have single rates. East Longmeadow has seen their industrial park take off.   Ludlow, the same thing.  The commercial activity along the Route 20 corridor in Wilbraham which has a single rate has been mind-boggling with all the new construction for commercial activities there.  You need to follow those leads.  You need to take a very, very bold move and substantially reduce that rate.  If you go again to the DoR website, you will see the average single-family residential home ranks (OK?) 299 out of 339 communities in Massachusetts.  And only 111 other communities have a split tax rate.  So we would ask that you take some bold action, reduce the rate considerably, continue to spur economic development in the city of Springfield.  If you did a very quick mathematical calculation, you would see that the business community subsidizes each and every single residential single family property over $500. due to that split in the gap.  So we would ask that you make a dramatic move on that and do it on behalf of the business community.  Thank you.

 

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 Springfield in a stronger financial position moving forward.  And a lot of times leadership is defined in times of turmoil and, certainly, I don’t think in the history of Springfield there’s ever been such a tumultuous time where difficult decisions had to be made.  And, having witnessed it personally, I can attest that every decision you ever made was based upon what was best for the city and not what was best politically for you.  And it’s with that political courage that we’re in a better state today.  I believe you’re going to be releasing some numbers this afternoon, and I think that alone is testimony to the leadership that you and the board have demonstrated.  And I’d be remiss if I didn’t recognize Tom Gloster who’s here and is one of the original four horsemen that really worked to put the city together, so thank you very much.  And as the torch is passed to Mayor-elect Sarno, I’m confident that he will continue the trend and, hopefully, we can turn the city around.  Thank you very much.

 

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 family members working for the school department.  He is their direct boss right now. 

 

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 families today.  So please take that into consideration when you’re voting today.  We have to do something to help the people in the city of Springfield.  We have to give them a reason why they want to stay.  It’s hard enough trying to convince them that we have so many schools that do so much beautiful work and we have so many excellent students that do it, but don’t credit that superintendent.  You credit those teachers in those classrooms that work day in and day out that bring these grades up on kids with 40 in a classroom.  So thank you all very much for your time and have a Merry Christmas, everyone of you.  Thank you.

 

CG:  Thank you.

 

WL:  Timothy Collins..

 

Timothy Collins:  Morning or good afternoon.  Happy holidays to everybody, Merry Christmas, Kwanza, whatever your pleasure. 

 

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 Springfield, over 1500 of them in their very first job.  The superintendent and his administration has embarked on another collaboration to intervene on one of our schools that’s right on the abyss of the Department of Education’s accountability system.  You know, I have been going around this system for the last two years saying that administration can’t do this alone and teachers can’t do this alone.  We need to come together, talk to one another, focus on one, two or three issues that we come to consensus on, that we need to do this one two or three things in order to improve this district.  And if we get a critical mass of people coming to consensus on that, I think we can improve things for the children of Springfield.  I think that spirit needs to be part of any contract for the superintendent.

 

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 Springfield.  Why are we still paying from port hole to porthole [sic] for legal help when we have sufficient legal minds here in the city of Springfield?  And I also say to you that any decision that you make that is contrary to the decisions of our own elected officials...that adds to a cost to this city, that cost ought to be borne by the state, not by the taxpayers of the city of Springfield. 

 

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 Central High School and transfers to Sci-Tech High School and graduates in four years is counted as a drop-out.  I know drop-outs are a problem, but it’s not 50%, and we need to get the Commonwealth of Massachusetts and the Department of Education to start reporting on these other communities and groups that are coming in and doing this study to give us honest data about what our real problems are.  Thank you for your time, and, once again, I hope you enjoy your holidays. 

 

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 Springfield leap back from its financial crisis.  Many decisions that this board has made have not been popular, and now another decision looms in the air, this time with regard to the contract for the school superintendent.  In all fairness I have to say Dr. Burke has made some good progress in the school system, some too small, but nevertheless, some progress have been made.  The city of Springfield...however, I am deeply concerned with Burke’s constant participation in the application process in other school districts.  The city of Springfield is not out of the woods quite yet.  The school system still has a persistent problem with truancy and with many of the issues that the school department still faces.  We need strong leaders that are willing to stay in Springfield for the long haul, not to stay in Springfield until something better comes up.  Dr. Burke’s constant participation in other school districts’ application process signals, at least to me, that he’s ready to leap out the city.  The city and the school department needs decisive and constant leadership.  The school committee must be completely out of their mind in asking the governor for authority over the superintendent’s contract.  That prerogative falls squarely upon you as it was created by the legislature.  Dr. Burke needs to convince us that he’s willing to stay in Springfield for the long haul.  Should this fall within his wisdom, besides to offer another contract to Dr. Burke, I strongly urge that the board include language that would keep the superintendent in Springfield and not to repeat the same contract that was offered to the police commissioner.  Thank you.

 

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 Springfield to expand, and for the city to attract new businesses, it’s important to have a strong blight reduction campaign in the city. 

 

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 Springfield; it’s been successful, but it needs to be strengthened.  We have people working hard to remediate graffiti, but it continues to progress.  It’s particularly noticeable on the highways along Route 91 and the exit ramps from Route 91.  Some of the...a few public buildings, some private buildings as well.  The highway areas, many of which are the responsibility of the state highway department are sadly neglected and need some help if they’re to remain graffiti free.  This is what we and visitors to the city see every day, and we need to show that the city’s in charge of its appearance not vandals who appear with a spray can or with a magic marker.  It’s important for the city to show that it’s in charge of its appearance.

 

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 November 29, 2007 entitled “Spreading the Misery.”  And the indication there is that a boarded up house is an attraction for vandals and prostitution and drug dealing and so forth.  The plumbing in boarded up properties is highly sought after, and vandals cause thousands of dollars in damage while harvesting maybe $25. or $50.out of...from the copper that they steal from these properties.  It’s another reason to be vigilant about boarded up houses. 

 

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 Springfield.  We have been down this path before and our civic buildings have suffered, specifically the long-silenced campanile. I urge the control board regardless of what Beacon Hill does to obtain funding for stabilization and repair.  Certainly there are other issues facing our city, but as you may or may not know, during the Civil War and despite its cost, President Lincoln urged completion of the capitol dome as the symbol of the union.  A recent editorial in the Boston Globe cautioned against Springfield trying to recapture its glory.  I say, “Why not?”  To paraphrase the late President Kennedy, this is absolutely one of those things we “must do not because it is easy, but because it is hard” and he was talking about going to the moon.  Surely we can and must ascend all 300 feet of the campanile and preserve it for succeeding generations.  As it stands mute and endangered with collapse, the campanile casts a silence over the city more deafening than any bell.  The campanile and municipal group are the city’s most defining feature and symbol.  I have read that the carillon in the campanile plays notes from Handel’s Messiah.  Hopefully, when the day comes when its notes are heard once again, we will find a city redeemed.  [Applause]

 

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 Springfield from the depths of its financial crisis to a place where we are able to plan for and invest substantial sums in its future.  Nothing can represent the work that has been done over the last four years or the five decades prior to it.

 

            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 Springfield.  When Mayor Ryan took office four years ago, at that time he restored calm to a city in crisis.  The city faced a $40million deficit.  In four short years, Mayor Ryan along with his outstanding team turned this city around.  It is a remarkable accomplishment, and today the city has close to $50million in reserves. 

 

            I have often said to my friends back home in Taunton that no one knows what it is like to sit behind the [mayor’s] desk day in and day out.  And, as a former mayor, Mayor Ryan, I know the challenges that you face, the heartaches that you suffered and the joy that you experienced, and, Mayor Ryan, you should be very proud of your four years as mayor.  And when you leave this beautiful building in a few weeks, hold your head high; you had a wonderful journey.  And when the historians look back at the Ryan years, they will write that Charlie Ryan was an outstanding leader, an honest man, a steady hand and a true gentleman.  And, Mr. Mayor, it has been a real pleasure for me serving with you over these past seven months.  I have enjoyed every minute of it, and thank you for your service, thank you for your dedication and commitment to this great city, thank you for being a good friend.  Job well done.  [Applause]

 

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 Taunton, that the last three and a half years, control board years, have been different.  I know we go back sooner or later to our original charter, but, God, there’s got to be a lesson somewhere in this, that for three and a half years, the city has moved profoundly forward in a professional way. 

 

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 family, family values.  He and his wife Joan, they were such a team, such an inspiration.  I mean just to survive bringing up 11 children, 10?, 45 grandchildren...just in that, even if he...even if the Mayor had not accomplished anything he accomplished in his professional life, think of what he has accomplished in his personal life and the role model that he has been for so many children and grandchildren.  And the city of Springfield is indeed fortunate to have had his leadership, and you will definitely be missed.  And I think you keep getting wiser, because the last few meetings, you’ve agreed with me on everything. [laughter]

 

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 Springfield, her involvement will be, obviously, quite important and will contribute significantly to the work of the committee.)    Control board member and chairman of the committee, James Morton.  There will also be two public safety experts on the committee.  And, in making these appointments it was important that a couple things happen: number one that we not put members in who may have...who might end up having a conflict interest because they may serve with the new police commissioner (doing so, of course, may create a difficult dynamic and so we wanted to avoid that.  So that was certainly an important factor.)  And another was we had some significant discussions with public safety experts from across Massachusetts, and the two people I’m about to mention are...received the highest marks.

 

The first of the two public safety experts will be Chief  Alan DeNaro. Chief DeNaro is the current police chief in Haverhill.  He...Haverhill is a large community, fairly large community, has a number of public safety challenges of its own.  His reputation is that of a reformer and a strong leader and strong manager in a police department.  He will serve on the...he is believed...we expect that he will serve the committee and the community quite well.

 

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 America.  Again, it’s an open competitive search process, and the deadline for the resumes is in January with the process to kick off with target completion date of the end of February.

 

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 Springfield city council?

 

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.

 

**MOTION PASSES 4 to 1; KW voting no.

 

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 Springfield.  About a year ago, Comcast approached the city and asked if it would be permitted to close down its cable studio in the VanSickle School.  Of course, initial interest was high on our side; we’d certainly like that space back for important educational uses, but as appropriately occurs in instances such as this, the control board, working with the city, initiated a review of the entire contract to ensure that we did not resolve one issue, but leave many other issues unresolved.

 

            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 Springfield costs that they agreed not to pass along, and that they are underfunding financial commitments that the company made to the city of Springfield.  The result for the residents has been higher cable studio...excuse me, higher cable television rates than we believe is appropriate.  We’ve had a number of discussions with the firm--the Mayor, myself and the law department—but these issues remain unresolved. 

 

The city is planning to initiate litigation on behalf of cable subscribers of Springfield to recover what we believe to be these substantial overcharges.  Based on the number of years and the nature of the non-compliance, we believe this exposure to be substantial.  While we cannot tell you the outcome and we can’t tell you....I can tell you that we believe Comcast owes cities[sic] and rate payers $10.8million in overcharges.  And due to the nature of the issues, we believe that triple damages apply, bringing the total potential value of lawsuit to almost $33million.  Again, I can’t tell you what a court may do, and I can’t tell you what a settlement may occur (if one does occur).  I can tell you, however, that we believe there to be substantial issues that must be resolved and litigation, which the city will engage in the near term, appears to remain the only option available to resolve this matter.  So I wanted to provide you that update on this issue.

 

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 – Homeless Resource Center

 

SL:  The next item on the agenda is a vote on an appropriation for the Homeless Resource Center...Joined again by Chief Development Officer Dave Panagore.

 

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 Worthington Street Homeless Resource Center proposed location.  In the lower left-hand corner, just to reconnoiter you, is the police station.  In the upper left is a Performance Food Group location.  The... we have before you a board order that is the result of a long-standing effort by the city and is part of the Mayor’s homeless strategy for the 2007 plan “Homes within Reach” to alleviate the homeless condition in Springfield. 

 

The board request before you would facilitate the creation of a resource center on Worthington Street. This would represent the city’s portion of the financing.  This is approximately a $12million project in two buildings.  A $6million single-room occupancy revitalization of the Friends of the Homeless building on Worthington and a $6.7million resource center that would provide a day shelter, beds, medical, dental and food service—a comprehensive one-stop location.  In conjunction with the governor’s partnership plan for Springfield, where the governor announced $2million in HIF funding in addition to a variety of other funding sources such as a low...innovative use of low income housing tax credits, city and state HOME funds, and, additionally, a commitment from the Springfield community of $1million which is well on its way from my understanding.

 

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 Springfield, one dramatically enough or ironically enough on the steps of Symphony Hall.  If anything had to dramatize the absence of a credible homeless program in Springfield, that certainly did it.  We’ve made a lot of progress in the last several years.  It’s not easy.  It’s a struggle; every single step of the way is a struggle. 

 

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 Springfield to see this progress and I intend to make the motion that the $2million be appropriated. 

 

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 Putnam High School project.  Those bonds were issued in January in the amount of $12million for Putnam.  It was part of a larger $127million issuance, $38.5million of which was new money. That $12million issuance for Putnam, that money...that was appropriated as under municipal law when the bonds are authorized, there is also an appropriation to expend those monies. 

 

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 Putnam School Project

 

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 Putnam High School project.

 

CG:  Good afternoon.

 

Associate City Solicitor Kathy Breck:  Good afternoon. 

 

Director of Office of Capitol Construction Rita Coppola:  Good afternoon.  The construction manager...management at risk delivery method is...was voted by the School Building Commission as a sort of an alternative way to run this project.  And basically what it...what it does for us: anything over $5million is eligible to be run via this delivery method.  And it’s a...I don’t know how new it is in the state; it’s fairly new in the state.  It’s a...it comes under Section 149; it’s 149A of the Mass. General Laws.  

 

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 Forest Park?

 

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 familiar with it than I am.)   And then...and you get a point system that...it’s all contained in the statutes and then the city can decide, based on the reviewing of the...those proposals of who are the most qualified contractors and those folks get pre-qualified and then they get to go into the second phase of the process which has its own procedures where...which are all set forth in the general laws as well.  So it’s not based on the low bid, but they do propose in the second phase, they do propose what their fees would be, but they’re not proposing what their construction cost would be. 

 

JM:  OK.  Thank you.

 

KB:  So it’s not a process that we’re creating ourselves, and it’s not arbitrary or capricious.  And the same thing holds true for the subcontractors.  They have to be pre-qualified and they go through this process as well, the two-phase process. 

 

JM:  Thank you.

 

KW:  I have a question, Mr. Chairman.  Can you point to a school where this was done?  Is there another municipality that has done this or is Springfield first?

 

KB:  I think Quincy is using it right now and Salem.

 

KW:  Taunton?

 

RN:  No.

 

KB:  It’s only been in place in the past couple of years, so there are very few projects.

 

RC:  Not many.

 

KB:  Right, there are very few projects that would have had the opportunity to use it.

 

CVR:  Well, I think you mentioned before that DCAM is doing it, so that...

 

KB:  Yes.

 

CVR:  [to KW] which is of course really the building authority for the state.

 

RC:  Pretty regularly.

 

KB:  And also the state school...public school building authority...the colleges.

 

RC:  That’s right. The colleges.  Yeah

 

KB:  I’m not sure what it’s called.  I apologize, but they have used it.

 

RC:  That’s correct.

 

KB:  ...for many years under their own legislation.  It just wasn’t available for cities and towns to use until very recently.

 

KW:  Mr. Chairman, I think I should state that I am a member of the Springfield School Building Committee and I have previously voted on this in an affirmative action.

 

**MOTION PASSES UNANIMOUSLY..

 

Vote to Accept Grant Funds for Police Department

 

SL:  Thank you, Mr. Chairman.  The next item is a vote to accept grants for the police department.  Executive order 122010 functionally does two things.  It accepts two categories of grants: Byrne Memorial Task Force grant in the sum of $110,000., the governor’s highway safety grant for the sum of $112,000. and, just as we saw earlier with the appropriation for the Homeless Resource Center, we have the governor’s commitment to the city of Springfield for additional public safety personnel.  The governor’s office committed originally $500,000., now $560,000., for the hiring of additional police personnel in the city of Springfield.  So this order before you would authorize the acceptance of those three grants and would also authorize their expenditure for the purposes that the grant was received. 

 

CVR:  So moved.

 

KW:  Can I ask what the other two grants are for?

 

SL:  Sure.  Actually Patrolman Elliot, would join me up at the front?

 

CVR: Sergeant Elliot?

 

SL:  Sergeant, sorry.

 

CVR:  Yeah.  Oh, I’m sorry, not sergeant.

 

KW:  Well, I can figure out what the minutes police hiring initiative is, but just for clarification, if you could explain to me what the other two are for?

 

Patrolman Brian Elliot:  The task force grant is a drug enforcement collaboration between the District Attorney’s office, our department, the Holyoke Police Department...there’s several agencies involved...the drug enforcement agency as well.  Without giving specific details in deployment, it’s money that purchases overtime, hardware, software, various equipment that they use (surveillance equipment and so forth).  And the highway safety, it’s $112,000. that Governor Deval Patrick has made available through the Executive Office of Public Safety and Security; it’s five deployments that they define the times which we would deploy.  It’s in unison with all the other law enforcement agencies across the state.  They will be publicly announced.  We’re about to begin one now for the holiday season.  And the remaining $12,000. out of that $112,000. is for equipment purchases which have to be approved by the state such as LIDAR [Light Detection and Ranging] radar guns, software, hardware, things of that nature.

 

KW:  Thank you.

 

BE:  Thank you.

 

KW:  Good Luck.

 

**MOTION PASSES UNANIMOUSLY.

 

Vote on Residential Factor for Fiscal Year 2008

 

SL:  I’d would note that every time I see Patrolman Elliot, we’re getting to accept and spend somebody else’s money, so I hope to see you again soon, Brian. 

 

The next item on the agenda is the vote on the residential tax factor for 2008.  If the assessor, Steve O’Malley would join me.  As the...the control board has...the setting of the tax rate...the tax rate hearing has traditionally, under the control period, been conducted by the control b-...by the city council with the control board setting the residential factor, which is the allocation of taxes between the commercial/industrial and residential tax bases.  Steve is here to give you a presentation on the tax rate and on the...and the shift in the residential factor as well. 

 

SO’M:  Thank you.  Good morning, Mr. Chairman, Mayor Ryan, President Walsh, members of the commission[sic].  What we’ve tried to do in this presentation is to outline for you the three components that go into establishing this classified tax rate.

 

            In the first page that you look at in your presentation after the...  [On the PowerPoint slide] We’ve compared the total valuations for the city of Springfield from FY2007 or previous fiscal year to this year, FY 2008.  We’re showing you there the increase in the total dollars in the residential class in the but even though the total dollars went up, the percentage of the...those dollars to the entire taxable property in the city of Springfield went down.  In the commercial properties, both the total number of dollars in value went up in 08 plus the percentage went up slightly in 08.  The overall total value of the grand number for this value of taxable property in the city went from about $7.4billion to $7.8billion.

 

            On the next page, we break down those increases in both dollars and as a percentage over the previous year.  So we went up about $260million in residential value (or a 4.5% increase over the previous year).  And we went up about $113million (or about 6 .8%) increase in value [in industrial/commercial value]. 

 

Once they’ve been certified by the state, we need next to determine what our levy limit is for the current fiscal year.  This number’s made up of two main components: our previous year’s levy limit times 2.5% (that $145million that we raised last year times 2.5% is about $4million as you can see in the numbers at the bottom box [of the slide]) plus our new growth number which is also about $4million.  New growth in the city of Springfield this year—most of that money comes from the commercial/industrial and personal property, specifically the personal property.  We saw it in a significant increase in the commissioner certified values for the personal property accounts of the utilities, specifically Western New England Electric and Baystate Gas.  They had a significant investment in their infrastructure and all of that is personal property, and all of that is taxable as new growth. 

 

The total of that allowable levy increase over our previous year is about $8million or a levy for fiscal year 2008 of $153,506,032.  Now we have to determine how we’re going to break down the tax rate.  The city of Springfield, since it’s been eligible to classify it’s tax rate, first in FY 1983, we have always classified our tax rate here in the city.  There are three areas that you...that are normally considered.  One is what’s called the residential factor which, in fact, you will be voting on today.  The other one is the shift factor to the commercial properties.  The residential factor is a number under 1, the shift to the commercial/industrial and personal property tax group is a number over 1. 

 

We also consider in the city of Springfield what we call “the gap.”  The gap is the difference between that $73million that we...the 73% of the total value, of full fair cash value of the residential portion of the property and the percentage that we want the residential properties to take in the total levy.  In...historically over the last four or five years, we’ve tried to come in at about 14%.  So if you go back to the first page where we talk about the total levy in the class, in 1977...excuse me, fiscal year 2008, the residential property is about 77.32% of the total levy.  If we use those numbers, if you go to the next page, you’ll see an array of all the possible tax rates in the city that...  (The copy that you have in there is a little easier to read than the screen is.) 

 

There are, as you see, three pages from an overall tax rate of about $19.99 which would be a residential factor of 1 and a commercial factor of 1.  We are recommending that we go to the same 14% gap between the two or bring the residential portion of the levy down to about 63% which, on the last page underlined in red, you see that number at a commercial factor of 1.63, a residential rate of 81.532, and that results in a 63% of the total levy coming from the residential class down from what would be 77% if it were a residential...if there were no classification.  That results in tax rates of $16.03 and a commercial/industrial and personal property tax rate of $32.04. 

 

CVR:  $16.04?

 

SO’M:  $16.03 and $32.04.  On the next...as you see, we compare that to the previous years, fiscal year 07, when we had a residential rate of $16.04 and a commercial rate of $31.91.  The shift factor this year, as I said, would be 81.5382.   The commercial shift would be 1.64.  The residential share of the levy would be 63%, and the commercial/industrial and personal share of the levy would be about 37%.

 

            The last one is a comparison of the average single family house in the city of Springfield last...in fiscal year 07 was $146,300. which resulted in tax for the year of $2347.  This year, with the increase in values, the average single family residential home goes from $151,500 in value for a tax of $2429.  That tax rate was the rate that was approved...recommended by the mayor and approved by the city council yesterday and is the rate we recommend the control board approve today.

 

CVR:  Mr. O’Malley, you gave us a figure two or three days ago when you met with Mr. Lisauskas and me, and I think the board and the audience would be very interested in it.   You gave us a figure of 10 to 12 years ago...what was the gross value of all of our taxable properties, something in the $3billion area?

 

SO’M:  Yeah, we were about, I think, in 1990 before the real estate boom...

 

CVR:  I thought it was more like 1993, 1994...

 

SO’M:  It might have been that.

 

CVR:  It’s gone from let’s say $3.5billion to close to...

 

SO’M:  Correct; we’ve almost doubled our...

 

CVR:  Close to $8billion, isn’t it?

 

SO’M:  We’ve almost doubled our total over the previous year.

 

CVR:  It’s an astounding growth, and a lot of that was done in our bad years here, so, you know, I think the interesting and the encouraging thing to me is there’s a base on which we can rebuild.

 

SO’M:  Yes.  We still are underneath our...we still are underneath our levy limit.

 

CVR:  Oh I understand that.  I understand that.

 

SO’M:  So, we’re not...we have bumped it...in the past we have bumped up against that levy...that levy ceiling.

 

CVR:  OK. 

 

CG:  Member Nunes.

 

RN:  Mr. Chairman,  Mr. Lisauskas, new growth has been certified at $4million.  What did you estimate in the fiscal year 08 budget?

 

SL:  I believe it was approximately $2.5million.

 

RN:  Thank you.

 

JM:  Mr. Chairman.  Were you here during the presentation made by Russ Denver earlier?

 

SO’M:  Yes.

 

JM:  What would your response be to his comments?

 

SO’M:  I would expect nothing else from the president of the Chamber of Commerce than to recommend that we not classify the tax rate.  I was a member of the board of assessors...I’m a retread; I’ve come back to this job after a few years off.  But I was a member of the board when we did the first original classification of the tax rate back in fiscal 1983, and it’s the same tune, just a different singer.  But, you know, you can either...real estate tax [unintelligible] is taxes are a regressive tax, and you can’t make everybody happy.  I wish there was a magic number I could present to the commission that would make both the residential property owners happy and the commercial and industrial personal property owners happy...  I’ve...don’t know what that number is and I know that my fellow assessors throughout the commonwealth—nobody’s ever hit on that number.  You just can’t make everybody happy.

 

CG:  Leaving aside the general question of whether to have separate rates or not, I’m just curious what discussion if any there was about...there’s actually a choice here to slightly lower the residential rate and then moving up the residential rate despite the fact the commercial...

 

SO’M:  We’re well towards the bottom of that scale that’s available to us, but, as I said, it’s been the tradition in the city of Springfield over the last few years that the gap is the number that we try and hit.  We...in prior years, they had tried to every year lower the residential rate a little bit.  And there was a period they tried to lower the commercial and industrial and personal property rate at little bit, and it basically has settled into a familiar pattern of hit that gap.  And we kind of spread the burden of that two and a half percent increase and the increase in the levy over equally and fairly over both classes of taxable property.

 

CVR:  I would say this, at least an eight or nine year history of similar judgments or decisions as we’re asking for right now.  That there’s an imbalance we certainly understand and can accept that everybody would be happier if the business and commercial rate was lower.  By the same token, we’re trying to achieve the medium--not the happy medium, because it’s not happy for anybody--but the unhappy medium, but trying to be fair to and weighing it both.  And this is consistent with what we’ve been doing now for some periods of time in at least two straight administrations.

 

KW:  I’d like to bring up some of the points that were mentioned at the Springfield city council meeting when we voted on this.  And, Steve, I’ve heard you say many times that there’s not a lot of wiggle room here, that a lot of this is done by state formula.  So you have to follow certain guidelines.  The city council, however, was concerned that there doesn’t seem to be a lot of time given for deliberation of this issue and notice to the public, and that in real time, in December of 2007, there are concerns about mortgages and housing and that certainly won’t be reflected in the valuation that we do.

 

SO’M:  Yes.  We, quite frankly, we should have accomplished this goal of being able to set a tax rate much earlier in the year.  We ran up against a significant problem which was that this was a reeval[uation] year plus we installed this year a new software program, a gamma system, which slowed the process down somewhat and the time line of getting it....we...it’s commitment on the board of assessors to get this task done much earlier in the next fiscal year.  So that if it’s nec...if the council wishes to hold committee hearings or to do a road show in the neighborhoods with this, there’ll be more than adequate time for council to do that.  We’re required by law to hold a public hearing, and that was what we did yesterday. 

 

KW:  I was interested in you sharing your comments that you made about your concerns about the mortgage... mortgages today that you today just made yesterday about the city of Springfield being impacted.

 

SO’M:  You mean the sub prime market rate?

 

KW:  Yes.

 

SO’M:  We...we’ve always had foreclosures in almost every market and in...with the relationship of the sub prime mortgage market in a number of councilors raised the question about, you know, that we’re seeing this crisis in financing and it’s driven by this sub prime market.  They only represent, in the United States of America, only represent about 30% of all the mortgages issued. And, of those, only about 5% of the sub prime market ones are really failing.  In the city of Springfield, because our values are significantly lower than they are in areas where the impact of the collapse of the sub prime market is having a significant impact on real estate values such as Miami and Las Vegas where the average single family home is over $300,000., over $400,000. in some of the communities around Boston where you see the same number, we don’t...I personally don’t feel that the sub prime market is going to have that significant an impact on values in the city of Springfield, but it will in the real estate market as a whole nationwide and even as it will in some areas of the Commonwealth of Massachusetts.

 

KW:  Thank you.

 

CG:  Mr. Nunes.

 

RN:   Mr. Chairman, I’ve been advised by the city solicitor that I should not vote on this issue due to my position within the Department of Revenue

 

CG:  They always [unintelligible] the tax man.

 

CVR:  So it’s your fault. [laughter]

 

RN:  I do what I’m told.

 

**MOTION PASSES WITH 4 VOTES, RN abstaining.

 

Discussion of Delegated Authority

 

SL:  Item number XII on the agenda, discussion and approval of control board staffing and compensation.  As the board members are well aware, the ultimate goal of the control board is to restore home rule for the residents of Springfield.  And as we enter a transition phase of the last year and a half or so of the control board, the work of the board both continues and, to some extent, changes as it requires continued and expanded collaboration on many levels.  This will require substantially more staff time and work with other folks.  There are a number of critical improvements underway, and to pursue those and to continue along the path of transition (transitioning the city to home rule), additional staff is required.  This new staff position would be involved in a number of areas, including our up-coming governance efforts and our work to improve education, including additional public involvement in both areas.  The position would also shepherd important projects, under the direction of the control board, continuing to improve the quality and efficiency of the services and municipal management in Springfield. 

 

            The prior control board authorized the creation of such a position.  We have not, of course, acted upon that prior authorization, but I ask you today for your approval in creating and filling that position which would be known as a position of “project manager.”  The proposed salary for that project manager position would fall in the range of $60,000. to $70,000.

 

[Unintelligible comment from a board member]

 

SL:  Sure, sure OK.  And the second item under this with regard to control board compensation.  It’s a request for a raise for one of the members of the control board staff.  As you know, the chief development officer for the city, David Panagore, is both a control board employee and a critical part of our management team.  David’s Herculean efforts resulted in the retention of Performance Food Groups in Springfield which kept more than 200 jobs locally and is creating a growth capacity for more than 200 additional jobs.  The long-stalled projects, for many years stalled projects, of the York Street jail and Chapman Valve are now moving forward, and scores of derelict buildings have been demolished, removing blight from the neighborhoods.  The day-to-day management and improvement of the administration in code enforcement, zoning, planning, economic development and other areas all are reflections of his leadership and managerial capabilities within his department.

 

            I ask you permission to increase Mr. Panagore’s salary by $10,000. to $115,000.  This is of course...it has been some time since his last adjustment, so this is a part cost-of-living, but much more so and very much a reflection of his hard work and the fruitful work he has had on behalf of the taxpayers of Springfield.  He is, as I mentioned, an invaluable member of our team, and I would ask for your approval of both his salary adjustment and the authorization to create and fill the position of project manager.

 

CG:  I would just comment that these are recommendations I favor.  I think we’re all mindful, particularly those of us who are governor’s appointees and don’t necessarily live in Springfield, about keeping the expenses of the control board to a minimum.  (I think we’ve actually cancelled more costs than we’ve incurred since we’ve arrived.  We cancelled at least on significant consulting contract that would cost quite a bit more than everything we’re talking about here plus some.)  So I try to be very mindful of that, but I do favor these, because they’re essential for the work we need to do in this remaining phase, so I think I need to make that comment.  Are there any other comments or questions?

 

RN:  I want to make it part of the record that these...that this new position and the increase is not part of the city budget.

 

SL:  That’s correct.  It’s not part of the city’s budget.  Thank you, sir.

 

RN:  It’s the control board budget.

 

SL:  Yes, sir.

 

RN:  Funded by the Commonwealth.

 

SL:  Yes, sir.  Thank you.

 

KW:  I’d like to make a few comments, Mayor.  First or all, I think we need to be mindful of what Chairman Gabrieli said.  We’ve got to be cautious with the money.  Now this is money that the citizens of Springfield will have to repay, is that correct? 

 

SL:  Not for the costs incurred, but in the next six  months, yes, for the costs thereafter may be costs borne by the Commonwealth directly. 

 

KW:  Since the control board has an end date in sight, I do not think you should be adding more personnel.  I don’t disagree that Dave Panagore...I think he’s done an excellent job.  However, I think to have a salary increase goes against the grain of what is happening for everybody in the city of Springfield.  There are many people in the city of Springfield that do a very good job, and I don’t know if...I’d have to look to see if that kind of compensation is fair across the board, but I think at this point in time the control board should not be adding staff or spending more money that the citizens of Springfield have to repay, and I will be voting “no.” 

 

And also I have to say that I remain concerned about this word “governance” and what “governance” really means and what the whole purpose of this “governance” is, and I certainly believe in the integrity of the people that I have served with on the control board, and it has been a pleasure serving with you.  But the government in the city of Springfield should be decided by the residents of Springfield and not a board, and I would be very upset if this board tried to impose any kind of government on the city of Springfield that did not include the input of the citizens of Springfield, a charter review, or a vote.

 

SL:  And I think to that point, Ma’m, the...one of the reasons for the need for this position is just as you highlight that that has to be...that that needs to be a locally driven process.  And the control board has a great deal of experience and understanding of the municipal operations, but the future of government in Springfield must be defined locally.  But in order to facilitate the that process...in order to inform that process with the substantial lessons we have learned over the last four years, there’s the need for some additional staffing to be able to provide that information to the public.  You’re absolutely right, it is a locally driven process, and it has to be passed by the people of Springfield; it has to be something the people of Springfield accept.  But the control board needs to play an important facilitating role there, and this position is designed to do that.

 

KW:  And I’d might as well go one step forward and say I’m opposed to a city manager.  I support the concept of the mayor.

 

SL:  Thank you.

 

CG:  Any other discussion?

 

JM:  Very briefly, I would support a pay increase for Mr. Panagore, based upon the work that he’s done in the city thus far.  He’s reflected a tremendous commitment to the advancement of our city, works tirelessly, has a really good reputation within the business community, has done a lot to nurture relationships between the city and our business community which is essential as we move forward.  He’s an invaluable member of the city’s revitalization, and I would really encourage us to consider this pay increase for those reasons.  It would be an enormous loss if we were to loose him.

 

CVR:  I’d like to[unintelligible] upon what James Morton is saying.  I think Dave Panagore has been...it’s just....one of the inner circle in what has been accomplished around here.  I can’t say enough good things about him.  His intelligence, his tenacity, his work ethic, his skill. This is the best that Springfield’s ever had in economic development, and it’s under his leadership, and it’s got to continue.  And we’ve got another 18 months to go with the control board, and everybody wants it to be as productive as it possibly can be, and his efforts have got to be recognized .  He well deserves it, and it’s a miniscule investment in continued progress in this vital area.  The governor has said, the chairman has said, we’ve all said that going forward until the end of the control board a year and a half from now that economic development is one of the two or three defined things that have got to happen, because we’ve got to get on our own two feet, so far as tax revenue and jobs are concerned.  And this is the architect; this is the day-to-day architect.  The mayor’s involved significantly; you’re [SL] involved significantly, but the man who’s doing it 24/7 is Mr. Panagore, and I’m very, very happy that 2 ½ years ago he found his way to Springfield.

 

CG:  I would echo that and simply say as an example just to be [unintelligible] when I think about value in return, I don’t believe we’d be getting an extra million dollars from the state of Massachusetts for the homeless shelter which would either obligate us...the homeless resource center...to put up a million dollars more as a city or not have one.  So I think that’s a small example, and, you know, I think kind of return on investment is one I would always counsel.  So  any other comments or questions otherwise I’d seek a vote for it.

 

**MOTION PASSES 4 to 1, KW voting no.

 

 Discussion of Delegated Authority

 

SL:  Item XIII on the agenda.  At the last meeting of the control board, the control board requested that I put together a memorandum summarizing the delegation of authority from the control board both to the mayor and the executive director of the control board.  Before you is that memorandum, and just to summarize it in brief:

 

            The control board, under Chapter 169 of the Acts of 2004 has the ability to exercise the powers and duties of the mayor, the city council, the school committee and all relevant boards and commissions of city government.  The control board in a series of actions through 2004 and subsequent to that has delegated certain powers and duties for the administrative efficacy of the city to the mayor, to the executive director, generally speaking, working in concert.  And that has been a very close working relationship between my predecessor, Phil Puccia, and Mayor Ryan and a close working relationship between myself and Mayor Ryan, and as well, I think, a productive one as well. 

 

            As we look forward, the question arises with regard to the continued delegation of that authority, and the memorandum before you proposes a continued delegation of that authority in the same manner in which it has been administered to date. 

 

In the area of contracts, the current and proposed continued delegation of authority is for contracts below $500,000.—or, excuse me--$500,000. or below to be signed by the mayor.  And contracts above that amount, $500,000.01 and above to be executed by the chairman on behalf of the board.  There have been a series of different reporting relationships with regard to these contracts.  Even on the...many of the small dollar contracts, Mayor Ryan and I and Mayor Ryan and Phil Puccia had meetings to discuss both the services and the contract and the procurement that underlay both.

 

CVR:  And propriety.

 

SL:  And propriety.  Thank you.  And...yes...and that is proposed to continue.  As we will have a new mayor and myself as executive director, we propose again to continue that.  The relationship of that reporting would propose to be formalized as it was with Mayor Ryan and I.  It was formalized at times verbally, oftentimes, viewing the written record, and this would continue that review of written record from the departments to ensure propriety, appropriate processes, etc. are followed.  As this is a delegated authority of the control board, the control board has control and review and so provide a record for the board to review as we have now just to ensure that the processes are handled appropriately.

 

            Budget transfers to date have historically been by the executive director under delegated authority of the control board.  I propose that that continue.  These are transfers among existing line items.  The expenditure of grant funds has again been a cooperative working relationship between the mayor and executive director, particularly under Community Development Block Grant funds.  We, as the board knows, have engaged a study of the city and school department grant operations, which is yielding some very interesting preliminary results, and we’ll present those final results to you about ways to greatly improve all aspects of grant management in Springfield.  As a financial issue, again, the grants have largely been administered by the executive...by signed-off on by the executive director with the coopera---with the coordination with the mayor, particularly on CDBG funds.

 

Development activities have been a...have been the responsibility of the control board and in specific of our chief development officer David Panagore.  The city’s history of diffuse leadership and management of economic development when you juxtapose it related to the centralized leadership and management that we have now which has produced, as we discussed just a moment ago, some very substantial and positive results, it would appear prudent to continue that delegation of authority and that the chief development officer remain the central, single administrative agency for chief development...development  issues and bringing them to the control board as is appropriate.

 

With regard to personnel, in 2004, the control board delegated to the mayor and the executive director acting together the ability to...or the authority to appoint all mayoral appointees.  That goes from department heads and cabinet heads on down.  The order specifically references all mayoral appointees.  My proposal is that that continue.  It has worked well.  It has worked effectively, and I see working with Mayor-elect Sarno (soon to be Mayor Sarno) we have thus far developed a very close working relationship, and I’m sure that that will continue to be  productive one.

 

            Negotiations and re-organizations under the personnel have been the...been delegated to the executive director.  I propose that that continue.  And boards and commissions: as you all know that important functions in city government are conducted by volunteer boards and commissions.  There are a number of them with very substantial authority such as the Springfield Redevelopment Authority, the Parking Authority, the Housing Authority, the License Commission, the School Building Commission.  Those decisions on appointments have been...I know this was the case with the mayor and my predecessor Phil Puccia as well as myself.  We had significant consultation with regard to the appointments to boards and commissions and I would propose that that cooperative relationship, that that joint relationship for appointments to boards and commissions continue as well. 

 

RN:  Mr. Chairman, to summarize, nothing has changed.

 

SL:  That’s correct.  Yes.  Thank you.

 

CVR:  I want to congratulate you.  That’s an excellent summary of...on half a dozen different areas of relationship.

 

SL:  Thank you, Mayor.  Thank you..

 

KW:  And all that’s consistent with the authority of Chapter 169?

 

SL:  Yes it is.  It’s all the authority being...it’s some of the authority that the control board exercises, but it’s the delegated authority under Chapter 169, that’s correct.

 

KW:  And that would have been my question, too, that nothing is changing.

 

SL:  No, nothing is changing.

 

CG:  [unintelligible]

 

SL:  If you would like to accept the results of that report.

 

CG:  I think that, you know, in initially asking you to do this, Mr. Lisauskas, what I wanted to make sure was (you know many of us are new).  Certainly the three of us [CG, RN and JM], came in with an on-going process here.  And, you know, 169 I think clearly gives this control board vast authority over financial and personnel decisions in the city of Springfield.  I think that the longer you are on this control board the more you realize what a significant span of control that is.  And as one looks towards doing a job well between now and 18 months from now and being able to hand off a job well at 18 months from now, it’s very important to have clarity on that.  Clearly since Mayor Ryan was the mayor at the time the control board came on board, there was a developed set of understandings about what authorities remain, you know, at the level of the executive director or this board as a whole and what authorities practically we should be delegated to the mayor and his staff acting alone even though ultimately acting under 169, we hold responsibility for all of those.

 

            I thought it was very important that...I thought it was very helpful to me (to be honest, a couple of these things, I wasn’t clear about...that we make sure it be clear and in writing and done before the end of this current mayoralty, so that all of us were clear that we understood them and you’re in a position to convey them accurately to the Mayor-elect, so that we can continue the successful mutual relationship, both during this period and after 18 months from now.  So thank you for...in a busy time, putting this together and, obviously, we look forward to working with Mayor-elect Sarno in the same convivial manner we hope as we’ve been able to work with Mayor Ryan.  Thank you for that report.

 

Presentation Regarding Free Cash

 

SL:  Thank you.  The next item on the agenda is a presentation of free cash.  Just as some background: as the members of the board certainly know, free cash as I think a commissioner of Department of Revenue many years ago said “is neither ‘free’ nor ‘cash,’” but it is...generally speaking...you can think of it as operating cash left over at the end of the year, generally speaking generated through sound financial management on the expense side as well as on the revenue side.  And some particular highlights in Springfield, for instance, are continued collection of  long-standing unpaid taxes, long-standing unpaid parking tickets, and other sources of revenue that have remained outstanding for some period of time.  Prior to the control board, the city had not certified positive free cash since 1989.  The city’s balance in 2003 was -$57million.

 

CVR:  -$37million.  It was -$52 before.  Then it went to -$37.  We started at -$37million.

 

SL:  Yes.  Thank you.   So -$37million, I believe in 04 when the control board began.  By the time the control board arrived, the city was projecting a substantial multi-million dollar deficit as well.  Hard decisions based on good management and administrative principals and techniques have brought us to a very different place in a short period of time.  The city posted free cash surpluses in FY 2005.  Again looking at 2004 where it was -$37million.  Prior to that negative in the $50millions...negative in the $50millions.  In 2005 posted a $6.8million free cash surplus and last year posted a $17.3million free cash surplus.  This remarkable turnaround is a reflection of hard work and sacrifice on the parts of many, but also truly a reflection of, I think, how the city was managed prior.  In a few short years, the control board and city have begun to improve the finances from very substantial surpluses...substantial deficits to strong surpluses, even after making substantial capital improvement investments, investments in school books and other operating and capital items.  Good management has facilitated these financial improvements, but equally as important, service improvements have been going on and, as I mentioned before, capital investments that meet the city’s...that are designed to meet the community’s needs.  The...I’ll share with you the free cash number this year, and I would ask as we do, that you keep a few things in mind.  First, the city owes the commonwealth $52million in its trust fund loan which at the present time must be repaid in five years.  The city...the lottery aid picture is not a rosy one.  Information coming from the state treasurer’s office is the possibility of a 2% reduction in lottery aid which would result in a $1million recurring reduction in aid to the city of Springfield. 

 

The...in the years that the commonwealth experiences financial problems, which I believe is approximately every seventh year or so, state aids cuts typically follow, last for an average of three years and cost an average of $11million per year.  That is...for a total of $33million over those three year periods.  So there is a need for some substantial financial reserves to be able to weather those storms.  And that substantial number is a reflection of the city’s very strong reliance on state aid to fund its operating and school department budget.

 

            As we look to our new free cash (and it is a large number), we need to remember the context above, the $52million trust fund loan, the potential of eroding revenue conditions, the very substantial financial needs of...of the capital needs of the city (approximately $420million), the city’s substantial unfunded pension mandate...unfunded pension liability of about $450million, and the fact that as a matter of prudence, the city should have approximately 10%of its budget in reserve....approximately $50million to $57million.  This would allow the city to weather any of the financial storms that it could certainly project in the immediate term while addressing strategic needs such as the addition of new police officers, investment in schools and other things that in prior years have resulted in direct layoffs. 

 

The number for the free cash certification...the free cash certification that we received just today from the Department of Revenue is $30, 453,077.  That’s $30,453,077.

 

[unintelligible exchange]

 

CVR:  And we want to thank Mr. Nunes...well, you were the messenger.  But that’s a total of better than $54million in the last three fiscal years contrasted to a 16 year drought with no money and running it into the ground to -$37million when we started.  So you get rid of the -$37million and you add $54million to it: a pretty good day’s work.

 

SL:  It is, and it’s certainly a reflection, Mayor, of the very hard work of a number of municipal officials, including our CFO Mary Tzambazakis, our budget and finance director TJ Plante, and our city auditor Mark Ianello.  And then the team of many financial professionals in the control board office.

 

CVR:  You’re absolutely right.  I’m very proud of that result.

 

SL:  I will...

 

CVR:  Now you’re going to give us the bad news.

 

SL:  I can bring to the control board in January a recommendation with regard to the use of this money, both desegregations into reserves, potential use for capital and potential use for other purposes as well. I’ll bring that to the board in January if that would be convenient for you.

 

CG:  I think that would be very good.  Obviously, it does reflect, to put it in simple terms, the fact that Springfield now has a little bit of reserves and is living within its means.  And I think that as we go into the next budget cycle, I think in the last year since I’ve been aware of and the last six months since I’ve been involved with the control board’s activities, we’ve begun to support selectively, I think, significant new investments, new police force, and additions in hires, the...some of the State Street work, the homeless resource center and others.  I think as we go into this next period where the long term contracts of the city allow for some fiscal stability, I think you and your staff providing us and together we providing to the city kind of a multi-year picture of what we could expect and hope for, what are our best case, what our worst case, what are in-between cases in terms of what’s recurring and what’s not recurring.  I believe some elements of these cash surpluses have been non-recurring, some of them recurring.  We certainly have to recognize, as you point out, that the state has indicated clearly risk on their annual aid levels and we can’t plan only for the good times.  Nonetheless, I also think that will create the opportunity for us to make some choices amongst three priorities: paying down the loan (we’re going to address the current payment schedule, but paying down the loan that we’re obliged to), providing for the level of service plus that of sort of cushion that any city should have which will no be approaching 10% of our budget which starts to be a healthy balance, I believe.  And, selectively, investments in the future of Springfield, so I think that’ll be an exciting dialogue and we’ll all look forward to having that...I think we need very much, though, that sort of five-year look so that we don’t start spending it all ahead of what we can really do, and recognize all of those, those needs.

 

SL:  Thank you.  I’ll have that for you in January.

 

CVR:  I think the other thing we should comment on: you said we owe $52million, but just to reinforce this for the audience that’s here:  $20million of that came, what, nine months ago, and it was clearly designated for potential future development, sitting somewhere in the bank, and there are no specific allocations for that money right now; that’s to be determined gong forward.  And it’s conceivable that it won’t be spent at all.

 

So the first $30million was essentially spent; $21million of the $30million was spent to balance the first year’s budget, the 04 budget which I anticipate would be out of balance by $20million and, as you know, we came within a hair’s breadth of getting a $20million grant (that finally disappeared, a circumstance we don’t need to go into) and it turned into a $52million loan.  But...so, of the $30million we’ve actually spent, $21million was to take the 04 budget which was under water the day we got here.  And so...but I’m not sure that...  I have some feeling that it may be that you’re not going to spend that last $20million.  Or, if you do spend it, you’re not going to spend the whole thing, because, again, the whole world has changed financially for us from the time we first began.

 

SL:  Yes.  Thank you.  Shall I proceed to the next item on the agenda or...?

 

Appropriation of Free Cash to Special Stabilization Reserve Fund

 

CG:  The item we’ve added from executive session.  That’s probably appropriate.

 

Unknown Speaker:  Are we doing item XV?.

 

CVR:  Where did the $13,925,000. order come in?

 

SL:  Thank you, Mayor.

 

CVR: Are you at that point now?

 

SL:  I am, yes.  As we look at the city having positive cash position for the first time in many years, one of the things that the city does is...

 

CVR:  This is on the CDO?

 

SL:  Yes, sir.

 

CVR:  OK.

 

SL:  ..invest its cash.  And we have been made aware recently of the fact one of the city’s investment firms is Merrill Lynch.  And Merrill Lynch has invested the city in a number of investment vehicles with the city’s cash.  And one of those investment vehicles is a mortgage-backed security known as a “collateralized debt obligation” or a CDO.  By way of background, Chapter 44, Section 55 of Massachusetts General Laws provides the investments...legal...lays out the legal investments for cities and towns.  And it is a appropriately restrictive list, generally speaking includes certificates of deposit, treasury bills and notes, and other governmental bonds. 

 

We have discovered that Merrill Lynch has invested the city outside of that legal list of investments, and that investment has become...we are...Merrill Lynch reports that that investment is impaired and substantially impaired.  There is no market for that investment at this point in time.  It is $13.925million investment.  Merrill Lynch estimates its value at $1.2million.  I would note that that estimate is just that—an estimate; there is not market for the investment, so there is...it’s difficult to guesstimate what the actual value of that investment would be.  It’s a mortgage-backed security; they report to us that the mortgages are performing, but we have that as an issue and a concern.  We have engaged...the control board has engaged the services of Goulston and Storrs, a law firm, to work with us to determine Merrill Lynch’s liability here.  We believe it is substantial, and we will be pursuing that with the assistance of Goulston and Storrs, the assistance of a number of associates...a number of actors at the state government level.  We’ve had conversations with the attorney general as well, productive conversations with the attorney general, and we’ll be pursuing this matter further. 

 

CG:  I’d like to make a...thank you. I’d like to try to make this clear, and I want to be careful in my selection of words given that [unintelligible] the litigation [unintelligible] pursuing here.  Approximately $14million of the city’s cash, managed by three different firms, but in this case in particular managed by Merrill Lynch, has been reported recently by Merrill Lynch to be significantly impaired in its value.  That is to say that they would estimate it at about 10%; that is a loss of as much as $12million.  We as a control board, obviously, are shocked and disappointed, retained as you mentioned Goulston and Storrs, a qualified law firm, to assist us in an investigation into what happened and a determination of what actions to take.  We discussed that at executive session today.

 

            We have also, in the process of that, gone and sought the advice and help of the attorney general’s office, and their conclusions, I think, are similar to the city solicitor’s, to Goulston’s and to our own.  And those are that at this point it would appear that Merrill Lynch is very much in the wrong here, and that we can reasonably take action to recover the city’s money.  Whether that action ends up being by private action, by the attorney general’s action, by both or other, you know, is yet to be determined. 

 

            As I’ve mentioned, since this is a subject of potentially significant litigation, I feel it’s important to emphasize real limits on what I think we can go into in detail on some of this, because what’s important for us to do here is get this cash back.  Now with strong management overall the city, strong cash reserves the city mean suppose there’s no immediate issue to the city, but we take very seriously our obligations to hold Merrill accountable for the city’s hard-earned cash reserves.

 

CVR:  I’d like to make a few comments.  First of all, this is an extremely serious matter.  It came to my attention somewhere between two and three weeks ago when Ed Pikula came to see me, because of a request he had gotten that day from the city auditor, Mark Ianello, with reference to these particular investments.  Since that time, we have worked hard to get on top of the facts.  I’m sure we don’t have all the facts yet.  But we’ve got many more than we had two or three weeks ago when we first learned about this.  I’m sure many of you have read and maybe haven’t focused on it (and you will begin to) about this sub-prime mortgage crisis that is happening in the United States and may be going beyond the United States (I don’t know), but it certainly is catching everybody’s attention, because of the fact that the big American banks and the big American investment banking houses have totally failed us as a society.   .

 

            And I’m old enough to have seen this happen two or three times.  I’m a child of the Depression, and all my folks ever used to talk about in my adolescent years and teen-aged years was the bitter lessons of the Depression and yet I’ve seen two or three significant crashes and set-backs.  And when you look at them, primarily and ordinarily, it happens because of the greed of men.  Greed: you can’t get enough money.  These are the richest part of our society.  They pay annual bonuses that would dwarf the salaries of this whole room put together, and yet they can’t get enough money. 

 

And so they went into a course of action several years ago evidently as we put the pieces back together to buttress up the market that was lending at high risk mortgage to people who, in many cases, were not going to be able to pay it back.  They certainly weren’t able to pay it back if anything took a downturn.  And then what happened here, the investment that Steve is talking about and that the chairman is referring to is an investment which is collateralized by a collection of these sub-prime mortgages. 

 

Steve pointed out that under the law of Massachusetts, the interesting thing and God bless the legislature; they can irritate us and frustrate us sometimes, but they’re some smart people, and 100 years ago, they passed a law (and they’ve modified it, but it’s essentially the same law) and that is it allows cities and towns to only go as far as the legislature lets it go.  And so we don’t have the power to do certain things, and when a city or town tries to do something that it doesn’t have the power to, it’s a nullity from day one.  It’s like it never happened, because of the fact it’s null and void ab initio and what this....  In translating it to this situation, we can invest—we or Worcester or New Bedford or anybody else—can invest short-term money (and that’s what this is, short-term money) for no longer than 365 days because of the fact money has a value in and of itself, and it’s prudent and it’s wise and it’s intelligent to do so, but it can only be in certain very, very safe and restricted investments.  And we don’t have the power to go buy Alaskan gold stocks or anything like that.  It has to be federal government obligations or it has to be CDs [certificates of deposit] from banks or other financial institutions or it has to be money market accounts that are registered with the SEC [Securities and Exchange Commission], so there’s a...you’re circumscribed, and intelligently you’re circumscribed. 

 

But what happened here is the investment that went was not within the permitted area.  And the representations were made that it was, and they were continued representations, and they were false representations. Or let me put it even more colloquially, they were lying about the nature of these.  And we have evidence that Merrill knew, knew the law that applied here, Chapter 44 Section 55; it’s not a mystery.  If you’re in the business, you know this law.  They knew they couldn’t do it and yet they did it. 

 

Now, are we the only one that’s been hurt?  No, we’re not.  We think we’re the tip of the iceberg.  This is not something we---you can go to Google and find out who else is invested.  But we know there’s company, because we’re talking of billions, hundreds of billions of dollars, which right now when one investment bank after another collectively are writing off bad debts from their own account.  The treasurer of Massachusetts, the treasurer of Massachusetts has the responsibility and the right to have a collective investment fund for the money that cities and towns might want to put into a collective investment fund.  We understand that $147million of the treasurer’s money has gone into this, and that the same problem exists.  In the state of Florida, school systems in the state of Florida can again go into a collective investment fund.  And you may have read of the run on the bank down there—there’s $2billion in the state of Florida a public school investment fund that now all of a sudden is not there because of the fact all of a sudden these funds were in these sub-prime collateralized debts.  A very, very serious thing. 

 

I think that the good news is this and I’m indebted to our chairman who, when we found out about this, got on it immediately.  He got in touch with some skillful lawyers—one of them is still here, Mr. Rosensweig, in the rear of the room--who have been on this case and for a good two or three weeks.  These are experts in ...these are giants in their field, and I couldn’t feel more comfortable .  I’m an attorney; I kind of know the territory.  I couldn’t feel more comfortable with the top notch talent that we have on our side.  I’m also persuaded that the attorney general of Massachusetts is very, very concerned about this which is to our advantage, because I think it’s critical that the attorney general plant the flag and say to Merrill Lynch or anybody else that “You can’t do this.  You can’t go and sell illegal securities to our cities and towns or to our collective state treasurer’s fund or anything like that.”  So there’s a good battle on here, and I think that the good  news is that I think we have an extremely strong case.  The bad news is that we find ourselves in this kind of victimized position.  We’ve got a lot of company and this is going to play out over the next whatever (six months or a year as the case may be) but...and I think that your order here that you’re going to suggest that we put this money into some sort of a segregated fund and wait this out. 

 

But to me, there’s an irony here that if some poor people go and break into a 7ll and clean out the cash register, they’re going to jail as bad guys.  But when you have people who can come and victimize pension funds, government entities, solitary investors or anything like that and get away with it because of the fact they wear expensive suits, something’s wrong.  And so I hope that the attorney general pursues these people, lets them know that we aren’t going to take anything less than full redemption for an answer, because of the fact that we never should have been victimized in the first place. 

 

And if Merrill Lynch wants to run its businesses this way, then it’s high time that everybody else in Massachusetts and New England know that they’d better watch out when Merrill Lynch comes along the street.  I’m sure that Mayor-elect Sarno is going to continue and feel just as aggrieved at this as I am and that the control board is, because this is our money.  We worked too hard to get this money, to take this city out of the ditch to have it hijacked by some people who came forward, tried to induce the city to invest in something--it was illegal from the first place and lied about the nature of these in spite of the fact that they were asked repeatedly whether or not this in essence was a legal and appropriate investment.  So, it’s a serious matter; it certainly takes a little bit of the bloom off the rose of  the outstanding news that you were able to give, Steve, a few minutes ago of $30million in addition in free cash.  But I’m confident and optimistic that in the last analysis, we’ll get that money back, and in the meantime, it’s...the city has got to realize it’s in a fight.  I don’t think that lace handkerchiefs or soft words are going to do it; I think we’ve got to be strong.  We’ve got to be strident.  We’ve got to be aggressive, because it’s our money and we’re entitled to get it back.

 

CG:  Do you have a motion?

 

SL:  I do, Mr. Chairman, the next item on the agenda, as Mayor Ryan indicated, is 122015 would segregate the value of that investment in a special stabilization reserve fund to ensure that that money is again [unintelligible]...

 

**MOTION PASSES UNANIMOUSLY.

 

Consideration of Trust Fund Repayment Plan

 

 SL:  The next item on the agenda is the consideration of trust fund repayment plan.  The control board at the last meeting authorized me to work with the secretary of Administration and Finance to develop a repayment plan along the five-year guidelines, the legal requirements...the five year legal requirements for the trust fund authorized under Chapter 169 of the Acts of 2004.  The proposal reflects the five-year repayment plan that is required under law.  The five-year repayment plan is a shortened repayment plan and for a loan of $52million, that’s quite a truncated period.  It would be of great assistance to the city of Springfield for that repayment plan to be extended.  However, the negotiations need to revolve around that which we are currently entitled to do. 

 

            So the repayment plan before you would disaggregate...would take the $32million that has currently been expended from the trust fund and break that up pro rata share over the five years of the repayment.  So that’s $6.4million per year.  In the last year, FY 2012, the city would repay the $20million in economic development stabilization reserve fund.  That money is slated for repayment in 2012.  If it is going to be expended, it has to develop a return on investment during the life of the loan.  In this instance, it’s a five-year loan so if we can find investments that pay back (pay themselves off) in those five years, paying it in 2012 makes sense to...makes sense as a schedule, because we will have achieved that return on investment.  If we’re not able to find those investments, then the money stays in the city’s accounts earning interest, costing us 0% and is then repaid in FY 2012.  So, in summary, the repayment plan is for FY 2008, $6.4million; FY09, $6.4million; FY10, $6.4million; FY11, $6.4million and FY12 $26.4million (the combination of the two).

 

CVR:  Mr. Lisauskas, President Walsh, to her credit, has taken the initiative to work primarily with Senator Buoniconti to look for a 20 year schedule of repayment, and I think it’s important that nobody reach a conclusion that because of the fact we’ve got this good news that we have today that all of a sudden we’ve got money coming out our ears, we’re like Betamillion Bashby.  We’re not there yet.  And I’m hoping that with the new mayor and the city council and with the cooperation of the legislative delegation that there is still a way to move forward in what I think is a sober and realistic way to look for a 20-year payback.  Let’s assume we have to pay back $30million.  That comes out to a little bit over $1.5 a year, something like that, and that’s very, very digestible; there’s no question about it.  But if we’re going to pay back with the schedule that you’re talking about here (and I’m not faulting you at all; I’m just looking for a discussion) if we do that, then we’re kind of back to short rations.  And there’s so much to be done. I mean, you know, we’ve made great strides on the infrastructure and repairing school buildings and etc. etc.  But one citizen here to day was talking about the whole area of code enforcement and, you know, we know, we know we’ve got huge problems.  The Mayor’s talking about additional police and so on and so forth.  And so, if really, we end up kind of in the next few years paying back this entire loan just because of the fact that all of a sudden nobody’s interested any more; they see us as healthy and “Now you’re on your own. God bless you and good luck to you and we’ll see you later” then I think that it really is just going to undercut our long range efforts to be stronger and more stable. 

 

I’m not saying that we shouldn’t repay the state, but I’m also aware of the fact that if we got the first $20million grant, that we were looking at a $20million grant and a $30million loan fund—if we got that, you know, we’d have very little to pay back right now.  But I would hope that President Walsh and Mayor Sarno and all the rest of the people who are responsible for the future of this city would, in spite of your suggested repayment schedule, would redouble their efforts to try and get the cooperation of the legislative delegation to give us a pay-back year-by-year of something that is really quite easily digestible, and it pays back our obligation, it cleans the books, but by the same token, it leaves some money for not only the unforeseen difficulties that none of us can predict right now, but also, even in the absence of that, some ability to fund the kind of initiatives that we should be doing or the kind of catch up expenses that have been eliminated or ignored for just so long.  I just think it’s prudent financial management if we can effect that. 

 

I guess I’m talking more to my colleagues in the city government than I am to you, because they’re the ones who, along with the board, obviously, that have got to influence the legislative delegation that what I’m talking about makes some sense.

 

RN:  Mr. Chairman, I would just ask that we revisit the schedule in June through the control board meeting in June prior to the first payment.

 

SL:  Sure, absolutely.

 

CG   I think earlier than that, but certainly no later than that.

 

RN:  No later than June, sure.

 

CG:  I think that’s part of this five-year plan that I brought up earlier is we have to recognize this blend of things.  I certainly agree with the Mayor and have expressed to the legislature and the governor my judgment of the need for a longer repayment schedule.  Mr. Morton, any comments?

 

JM:  I agree with what’s been said.

 

CG:  I didn’t mean to call on you.

 

KW:  Mr. Chairman, I certainly concur with what the Mayor had to say.  I can assure that we will continue to fight for the city of Springfield, follow your good example and that I am concerned about are we voting on this or this is just a report?  What...what impact this vote has that we take this what this sends to the delegation?  I mean will they still continue to fight if we take this vote?  What’s your sense?

 

SL:  I, I don’t...I haven’t broached that issue with the legislative delegation.  I would note that under 169, the control board is required to propose a repayment plan to the Secretary of Administration and Finance, so understanding our mutual interest in extending the term of the loan, we have to propose something based on the law that we have today.  So I would hope that the control board’s endorsement of this or any other plan on a five-year basis would not be perceived as a preference toward five years.

 

KW:  That’s my concern.

 

SL:  Yeah.  So I think we can...

 

CVR?:  There’s a danger in that, though.

 

SL:  My conversations with the Office of administration and Finance have included very substantial conversations about the need to extend this repayment period.

 

CVR:  Then why are we giving as our best shot a five-year payback?

 

CG:  The law is five-year payback.

 

CVR:  Oh, I know the law is.  I know that’s what the law is.  I understand that exactly, but when the overture from A& F was that we negotiate it, to me that...I mean that’s something in lieu of the law.  In other words, you’re going in a different direction.  Now if we’re saying that we’re going to go in essentially the same direction, because that’s what the law says...

 

CG:  Well, no, Mayor, I don’t think the overture was...an “overture” might be generous.  I think the order was we are not complying with the law.

 

CVR:  Oh, I didn’t realize that was the communication.

 

CG:  I believe that the communication was “Where is your five-year repayment schedule since you’re obliged under the law starting this fiscal year to make those payments,” and so...

 

CVR:  Can’t we phrase this in a different way?  Can’t we just come out and say we want a 20 year repayment? 

 

KW:  Why can’t it include the 20 year repayment that’s under negotiation in the legislature?

 

CVR:  They turn that down, then we gotta do this.

 

SL:  I think to do that...we’re not legally allowed to enter into an agreement for the twenty years.  It has to be five.  In  my discussions (and I believe in the letter as well), it indicated that we would like to revisit...the board would like to revisit this issue if an extension is provided.  A & F has agreed that that would be a prudent course of action, so that if we get a ten-year extension...a 15, 20 year extension—whatever the extension is-- they have agreed that we should resubmit a plan based on what the law is at that time.  Unfortunately, that’s not the law at the time, and we can only enter into the agreement that we’re allowed to, a five year agreement.

 

KW:  I...Mayor, this is great, we’re going out agreeing with each other that if you send this down, then I’m really concerned about the impact it will have, and, Mr. Chairman, do you have any sense or is it too soon for you to share anything that you may have learned from your relationship with the delegation about the 20 year repayment.

 

CG:  Well, I think I only know what you know, I think, President Walsh which there have been expressions of support from that...from the Springfield delegation.  No...nothing, however, has passed.  Again, my feeling is I don’t think this letter says that we think this is a good plan.  I think the letter really says that if we get to June 30, we actually have to write a check.  And we under the law also have to say what our actual annual payments are.  Now we could say we’ll send you $1.00 this year and $1.00 next year.  And maybe we could send a defiant letter and sort of leave it all to the back year 2012.  If I were the mayor then or the city council then, I don’t know that I’d want you to have kicked it up the field, so I think that this proposes something that would be painful, but financially feasible, and I think until and unless the legislature changes this, I’m not, you know, sure we have any other choice but than to allocate some money on an annual basis over this five years.  We don’t have the choice as a matter of civil disobedience, I don’t think, to say “we’re not going to pay at all, because now we don’t like the basis...now that we’ve spent some of the loan, we don’t like the basis that we got it on.”  I’ve been vociferous in my view that I think the fact that we are...have been very fiscally prudent really means that now that we have a number that troubles us all (we would rather not spend $6.4million this year from reserves for this), I think we have the opportunity to redouble our efforts and the need to redouble our efforts. 

 

And I’ve had a chance to discuss this with the Mayor-elect as well.  I don’t mean to put him on the spot; I know he feels as strongly as you do, Mayor, I think all of us do that a 20 year schedule feels fair and feasible....

 

CVR:  How would it be to table this letter for...until your next meeting?  I’m not going to be here, but it gives the new mayor a chance to weight in, it gives the...other people in the city government a chance to talk to the delegation, and I think it’s important to take their temperature.  Now it may be that they’re going to not help us; well, if so, so be it.  But by the same token, to just send this letter, I think you’ve kind of put yourself a little bit behind the eight-ball. 

 

CG:  Mr. Nunes has a comment.

 

RN:  You’re under obligation to notify A and F by the end of the year what the repayment schedule will be?

 

SL:  I’d have to take a look at 169; if I can get a copy, I’ll be able to.  Ed Pikula, city solicitor, will check on that to continue the discussion.

 

RN:  Again, we’re going to revisit this issue in the spring.  The first payment will not be made until June 2008.  And in the meantime, I think we can, you know, see what...see how the delegation feels, but I don’t see any harm in...  If you need a vote...do you need a vote today to establish this schedule?

 

SL:  Yes as it’s the control board’s scheduled pose, I would...

 

CVR:  Well, why do you need a vote?  Why do you need a vote today?

 

SL:  I...my comments were...we need a vote, and I think the Executive Office of  Administration and Finance has indicated that we are not in compliance, in their view, that we need to provide a repayment plan based upon the law.

 

CVR:  Well, the statute says we’ve got to make the first 1/5 payment in 2008.  We’ve got six months to go in 2008.  Is there a separate statutory requirement that by Christmas of 2007 we’ve got to give them a schedule? 

 

City Solicitor Ed Pikula:   No.

 

CG:  The Grinch provision. [laughter]

 

KW:  What’s the difference in doing it in January?

 

EP:  The only requirement is [reads] “any such repayment schedule proposed by the finance control board and approved by the Secretary for Administration and Finance shall begin in fiscal 2008.”  But there is no time frame other than you have to make the payment.

 

CVR:  We’ve got time on our side.  I’m not saying that you put it in the deep freezer; you’ve got to come to grips with it, but [unintelligible] today.

 

KW:  And why would it reflect the money that we haven’t spent?

 

CG:  Well, we have to pay it back at some time.

 

RN:  We have to pay it back.

 

KW:  Right, but I mean all the money that you have spent; you just have the other in reserve.  And that would certainly, if they’re not going to go for the 20 year extension, that would certainly lessen the payments. 

 

CG:  Well, we have the $20million.  We’ve drawn down the $20million, so we have to pay it back.

 

CVR:  Yeah.  Give part of that back.

 

CG:  So look, I’m perfectly comfortable with reflecting my understanding not taking a vote and reflecting back the fact that we’ve had extensive discussion of this.  We understand our obligations and then, you know, we decided not to make this proposal, you know, here in December 2007.  But I do want to say, I think, pretty clearly: you can’t finish fiscal 2008 absent a schedule and a payment [unintelligible].

 

CVR:  Oh, you’re right.

 

CG:  So, I’m all for...I’m all for not this schedule, but it’s not under our jurisdiction.  And I believe that [unintelligible] the legislation you’re [KW] calling...we both seek was filed quite a long time ago.  So I think that we need to recognize that unless we can get the action from Beacon Hill broadly on it, this is, this is where we’re heading.  Let’s put it that way, so...

 

KW:  The city council did meet with the author of the legislation, Senator Buoniconti, who did indicate to us that there...he felt very strongly there would be positive movement on it.

 

CVR:  Yeah.

 

KW:  So maybe by the spring hopefully?

 

CVR:  I heard him say February, but...you know, there’s got to be that communication.

 

KW:  So. hopefully, we’ll have a different [unintelligible]

 

CG:  Perhaps we could pay them back in Merrill Lynch paper.  [laughter]

 

Transfer of Property to Commonwealth  

 

SL:  Thank you. The next item on the agenda is a transfer of property to the Commonwealth and, as the board is very well aware, the governor, the Commonwealth has made a substantial commitment to the city of Springfield in terms of its financial commitment both in creating the control board and the trust fund loan as well as in recent commitments by Governor Patrick to fund additional police officers and to fund the homeless resource center.  As a continuation of that effort and that support from the administration, the state government has requested the opportunity to conduct some economic development—economic redevelopment—work on a piece of property which is the order before you 122017 which is East Side Elliot Street property, the property commonly referred to as “Technical High School.”  This...they have, again, asked for the opportunity to redevelop it, I think that it’s a broad-based effort on the Commonwealth to continue their support to Springfield, but, being that the Commonwealth is going to try to redevelop it, it seems prudent at this time that it be developed and the...it would be prudent for the city to have the opportunity to develop it if the Commonwealth is not able to develop it in a relatively short order.  So one of the provisions in the agreement at the end of the first page includes a reverter clause which, by scrivener’s error, may say June 30, 2009, it should say 2008. 

 

Chief Development Officer David Panagore:  It’s been corrected.

 

SL:  Oh, I’m sorry.  I’m the scrivener and it’s my error it’s in there.  So this would transfer the property again known as Technical High School to the Commonwealth for a period of just about six months, and after that time, it would revert back to the city of Springfield if they’re not able to develop the property.

 

CVR:  My understanding is that you and the chairman have [unintelligible] in the governor’s office and also the legislative leadership in the house and this proposed transfer is [unintelligible] a reverter [unintelligible] no later than June 30, 2008.  Is it satisfactory to both of those entities?

 

SL:  Yes, sir.

 

DP:  And it would be to secure funding by June 30, 2008 not to complete the redevelopment of the building by June 30, 2008. 

 

CG:  Just to refresh us all, Mr. Panagore, what’s the status of that right now?  [unintelligible]

 

DP:  That building, Technical High School, has been...a portion of it was demolished well over a decade ago, almost...was it 20 years ago, Mayor, would you say?  An existing portion of that site is used to assist in development of the new federal court house.  It’s got a long history n the city, but in order to redevelop it, it’s what they would call “an upside down deal.”  It would require approximately between $6million and $10million worth of additional funds, gap financing, in order to redevelop that building as housing to establish maybe 40 units of housing.  In order to redevelop the building, you really need to find a public entity, and the Commonwealth has stepped forward as a priority project to examine how to actually redevelop that for the city.   But you would need, basically, a large subsidy in order to develop it for a productive use.  Without that, we wouldn’t be able to develop it.

 

CG:  So just to comment on it...on your statements, Mayor Ryan, I have spoken to both the governor’s office and to the legislative leadership.  They’ve indicated that they share a high priority for helping Springfield by investing in this site.   They have not yet determined what they think is the best use from a state point of view and are continuing their own discussions about that.  They would like there to be no ambiguity that we would welcome it.  And, therefore, I would like us to take this action today to sign over that land, recognizing that they may or may not be able to fully agree or fully fund it.  They’ve also supported our getting it back to the city as soon as, you know, a brief six months from now should there be no action taken.  But my understanding from my conversations with you, Mr. Panagore, and our conversations are that, you know, we should be thrilled at the prospect of the state using its own resources as they have pledged to do in the past to now follow up and actually do it, to develop a strategically located parcel once the court house reopens and one that has, as we understand it, kind of a net negative worth as things stand today and therefore not easily—not something I think you have as an easy prospect for redevelopment as chief development officer for the city.

 

DP:  Along State Street with the development of the federal court house with the improvements adjacent to the Quadrangle, museums quadrangle, the public library, Mattoon Street and Elliot Street.  It really is the final tooth in the development of the area.  The redevelopment of that building would be the final crowning jewel in the region down by the new federal building.

 

CVR:  I’m very happy to see it move forward.  It’s been in limbo for some time, but not only does this indicate significant...not commitment, but certainly it’s more than ambiguity to move forward on this.  But also that it’s a relatively short time frame, really is six and a half months from now and so we deed it today or authorize the deed today, and it will come back to us if by six and a half months (or whatever time is mutually extended).  But there has to be evidence of financing, full capacity, not only an oral commitment, but really the financial underpinnings have got to be developed.  So that’s progress; that’s moving forward.  I’m delighted to see it and delighted to see that both the house and the governor are agreed on this kind of methodology to move forward.

 

**MOTION PASSES UNANIMOUSLY.

 

Discussion Regarding Contract: Superintendent of Schools  

 

SL:  The last item under regular business is a discussion regarding the contract for the superintendent of schools.  As you are aware, there is obviously an employment agreement between the superintendent of schools and the school committee and, actually, it’s executed by the control board, so between the control board and the superintendent that has provisions in it that require that on or about December 1, the parties will meet to enter into discussions about extending that contract or entering into a new one.

 

We, the control board, did send a letter to the superintendent initiating those discussions, and we have...I have met with him on two occasions to discuss this issue and issues related to his contract.  So there...while there is in his contract there is not a date certain that says the negotiations must be finished by March 15 or January 15, it is...there is a need to...a need for definition as to the way to move forward if we are to....  The attorneys need to get together to negotiate another contract, and you have to start fleshing out operational performance requirements for a contract or a need to take other action.  The control board and/or the school committee would need to begin to take action in the immediate term to provide the opportunity for those discussions to occur or to provide the opportunity for a search and any other action that may be required.  So I want to...this item is on the agenda to facilitate a discussion of the control board’s...the path the control board wishes to follow in this.  We have met the contractual requirements to commence the discussions about extending or not.  And we have made a substantial amount of headway in that regard, but it is a contract that is the control board’s to enter.  And so it is put forward to the control board today in that vein.

 

CG:  So at the end of this conversation, our discussion, I’m going to seek a vote of this control board to make a decision as to whether to conduct a search for a superintendent or to extend the contract.  I think everyone’s aware that the school committee has discussed this in the past and more recently has strong feelings, has conveyed a letter, a believe there is a four to three majority in favor or a longer extension of Dr. Burke. I think that’s...I don’t know if they’ve actually formally voted, but I believe that’s what they’ve indicated.  I have sought, on behalf of the control board, legal opinion to clarify what seems clear to me from the statute, but nonetheless I’m not a lawyer so lots of things seem clear to me that lawyers disagree on. 

 

We do have that opinion that I think states pretty clearly (and I believe it’s your belief, too, Mayor, and I think it is the city solicitor’s as well) that it is the control board’s authority to make this decision.  I think we take it all very seriously.

 

We believe education is absolutely crucial to this city.  We also wish wherever possible to work very closely with local elected officials.   On this matter, I believe local elected officials disagree.  I believe the current Mayor in the past has expressed his opinion, the Mayor-elect has expressed his opinion, I believe a number of members of the city council present have done so as well, and I think the vote of four to three even suggests on the school committee a close call.  I have, just to be clear for the record, asked for and we contracted with a outside expertise for get a look at objectively what are the recent history of MCAS performance as well as certain other measures such as drop-out rates and the like.  We were lucky enough to get the services of probably the top person in Massachusetts for analyzing such data who was able to give us date comparing Springfield to ten other, nine other urban locations in Massachusetts that are good comparables and to help us look at individual cities.  We also had some qualitative information given us.  None of this was done as a formal evaluation of the superintendent.  It was to ground the on-going work we want to do in education, including this decision, but to ground it in a certain amount of facts.  There tends to be a lot of opinion, a lot of emotion around these things and for those of us particularly from outside we kind of wanted to start with a fact base. 

 

So I want to allow as much discussion as possible, but also recognizing that I look at us as having two priorities here: first and foremost and the one that’s our highest duty is to do what we think best for the success of the Springfield schools and for a group of students who face, in many cases, very high challenges. Secondly, an important but second priority, I think we want to show respect and gratitude to Dr. Burke who’s served the city for six years, and I think I know of few people who feel he deserves less than that. 

 

So I will say that the motion that I’d like to put on the floor is a motion that has several pieces to it, but the piece that I think we should entertain the discussion on is the key piece, is that in fact that the finance control board authorized the conducting of a search for a new superintendent.  I would seek the support of the control board for the same process as in the police chief discussion: to authorize me to work with others to form a committee of five which I would bring back to the next control board meeting as well as the selection of a formal outside consultant to do that.  I put that on the floor just to be clear that that’s I believe the consensus.  I don’t want to cut off discussion; I just want to be clear what the motion is that will be on the floor and happy to open it up for discussion on that element.  I’ve got a couple other pieces that I think are important, but are subsidiary to that.

 

KW:  I’d be happy to start it off.  I think this is a very different animal than the search for the police commissioner.  I think it’s very clear within the department that’s qualified already been through a search and I was very disappointed, as you know, that he was not named commissioner.  But I do think in the school department you should conduct a search.  I think there are many issues as you mentioned and we all know besides the MCAS,  the truancy, the drop-out rate...but more importantly, when we began public speak (and since this is my last meeting, I’d like to take credit for that), but when we began public speak and you had under Chairman Gabrieli we had the first meeting at STCC, I said to the chairman “Well, everybody that’s going to come down here, they’re going to talk about public safety.”  I was surprised that the majority of people that came down to that meeting—I would say, you know, 18 out of 20, talked about education.  In all our public speaks, education has been the top priority.  I think it’s very clear that there’s a sentiment in the city of Springfield that there needs to be a change, there needs to be dramatic leadership, and I support you on this one.  And I wish you good luck, because I do think that we are losing many young families in the city of Springfield because of their concerns about their children, their education and their safety in our schools.  And I’ve seen it happen in my own family, and I would like to reverse that trend. 

 

CG:  Any other discussion?

 

CVR:  Well, I’m glad to say something.  I think that...

 

KW:  Are you going to agree with me again?

 

CVR:  No, I think that...yes, I am...I am.  And I think that, you know, a lot of things are changing in the city.  I don’t think anything is immune from being looked at, evaluated.  I think one of the concerns that people have, I’ve always had, is that it’s clear that Dr. Burke has applied for other jobs from time to time, and what that says to me is that we have to make a decision whether or not change, if it’s going to occur, is going to occur on his timetable or the city’s timetable.  And the process of a search for anything, let alone a school superintendent for a significant system like this (27,000 youngsters, 4500 employees, 2600 teachers, etc.) is a pretty complex thing.  And I think that the downside is you don’t know what’s going to happen.  You don’t know who you’re going to get.  You can hypothesize that you’re going to get just the greatest educator from here to Vancouver, Canada, but the reality is that there’s a process and maybe the person who you’d love to have come here doesn’t...isn’t interested, isn’t going to apply.  But by the same token, if you take that attitude, you’re never going to make a change and I don’t think that the school department has achieved its full potential. 

 

And I’m certainly prepared to vote for the chairman’s motion.  Beyond that, I would say this: that I value the positive attributes of Dr. Burke, his character, his dedication to the public school system.  That should not be devalued in any way, shape or form.  He’s given it his all, and until we know who’s out there or who the finalists are, it’s impossible to make a judgment as to whether or not we’re better off or worse off.  And so I would...and I think it’s if we go for a search, but I would like to underscore, verbalize, the fact that I think it’s perfectly appropriate that if Dr. Burke wants to, that he become a candidate or...and I think that in the police chief or commissioner search, we’ve kind of talked about Deputy Fitchet being kind of a finalist.  In other words, it’s Fitchet against the world.  And it may very well be that Dr. Burke is entitled to that kind of treatment also...if he wants, if he wants.  I have no idea how he’s going to receive the news of this vote, but it’s something that...it’s a hard decision to make. 

 

I think that your predecessors would have made this decision a year ago except by that time it was clear from the signals from the new governor that probably the old control board wasn’t gong to stay very long, and so they felt, I think wisely and prudently, that they should not make a decision as significant as this, if in fact they were on their way out of office...that really if there was going to be change, that this was something that really should be done by their successors, and I think that was the right thing to do.  You’re here.  You’ve been here for seven or eight months.  You’ve gone through the learning curve.  You’ve got your feet on the ground.  You’re making your judgments based on what you now know rather than what you’ve been told. And so I think it’s the right thing to do.  I intend to support the motion. 

 

CG:  Mr. Morton.

 

JM:  I also intend to support the motion for the process to appoint a new superintendent.  I agree with  Mayor Ryan that, should Superintendent Burke want to be considered, that he should be considered.  And I’ve agreed with...I agree with everything that’s been said thus far.  I would just like to add that my concern is the drop-out rate, notwithstanding the comments made by Mr. Collins earlier, a 50% drop-out rate is not acceptable for a school district like ours.  There are other school districts in our Commonwealth that have a considerably better rate of graduation than we do here in Springfield, and those communities are not too dissimilar to ourselves.  And so if they can do it, we should be able to do it.  And the question becomes “Why aren’t we?”  And Superintendent Burke, with all due respect, has done a good job.  He’s taken advantage of the opportunity to create a school system that is able to secure important dollars and programs that he’s brought to Springfield, programs that I  think have made a difference like the International Baccalaureate Program has made a significant impact on our community.  I know a lot of graduates of that program that are now in college and are doing well.  However, again, losing as many youngsters as we are to not graduating is a public safety issue.  What are those young men and women doing with their lives if they don’t have a high school diploma?  We all know that the adult education system only serves about 5% of those that have the need for those services, so that’s 95% of those that are dropping out that are in theory not getting served and are falling to the wayside.  And we know what happens to people when they’re left to fall to the wayside.  So it seems to me we need to do something.  We owe it to ourselves to look at the other leadership opportunities that might be available to us.  And, again, we may not find better than Superintendent Burke, and if that’s the case, then that’s the choice we have.  But if we do find better, I think we owe it to our children to change the leadership in our school system.  And so I would favor a search. 

 

CG:  The full motion that I’d like to put in front of you has basically three parts.  I just want to highlight what the other two are.  I don’t know if you need me to repeat the first; I won’t unless you ask me to. 

 

CVR:  Do you want to move them?

 

CG:  Well, I’d like to ask the whole group, because I think they’re related.

 

KW:  [unintelligible]

 

CG:  Well, if you want me to, but...

 

CVR:  Only after we hear what you’ve got.

 

CG:  ...[unintelligible] what they are

 

CVR:  OK fine.

 

CG:  Secondly, I’d like to clarify that the, because this is consistent with the policies given us earlier about the division of duty between the control board and city personnel that...but I think it’s particularly important if we’re about to go into a period where the superintendent is in his final period “that the executive director is clearly appointed...is authorized to appoint and set the terms and conditions of employment of personnel necessary for the effective management and operation of the school department” (which is in fact his authority now) and that  “notwithstanding any prior delegation of authority the superintendent the hiring, firing of all school department positions other than teachers, paraprofessionals, vice-principals and principals” (that is to say above principal) “are subject to the approval of the executive director acting on behalf of the control board.”

 

And lastly, in relation to which makes (this last item may deserve its own motion, but I’ll put it on the table), there’s recently been discussion about the fact that there are hiring decisions being made above the level of principal that are brought to...or are potentially...or are subject to the 14 day notice period that we have to take action, and I would like the...to give the authority to the executive director to investigate any such hiring, including one recently made or offered, and if found to be inappropriate or not, the best choice to rescind that personnel action.”  So those are...the last one’s a little unrelated, but related and it’s all on one page.  ([to Mayor Ryan:]  You’re smiling at me )  And I’d be happy to take those separately or together as you prefer.

 

CVR:  Well, I don’t have any problem with what you’re saying there, but I think that it’s important to spell out and to hit head on one concern, otherwise if it [waves hand over CG’s papers]...

 

CG:  Why don’t I do the first three, because I think...?

 

CVR:  OK fine.  All right.

 

CG:  The first three are go ahead with the church, to authorize the chairman to appoint a committee of five (which I would bring back hopefully by the next meeting) and to hire an appropriate consultant.  And secondly, to clarify that what is I believe the status as it is that positions above the level of principal are decisions that must be made jointly, but with the executive director and are subject to his review.  Am I saying that part correctly, Steve?.

 

SL:  That is the current authority, yes.

 

CVR:  I had a different sense.   I thought you were reserving to the superintendent those peculiarly educational hirings...

 

CG:  Correct.

 

CVR:  ...in other words, not office staff, not central office, things like that, but principals, teachers...

 

CG:  Correct.  Above principal, we’re actually giving specifically to the executive director for this period of time, correct?

 

CVR:  Right and beyond that, it’s clearly the executive director’s decision.

 

SL:  I think there may be a difference between “above principal” and “teachers, paraprofessionals. vice-principals and principals.”  I think there may be administrators, for instance, in schools who don’t fall within that category.  So I think the Mayor’s  point of direct educational staff if you enunciate teachers, paraprofessionals, vice-principals and principals, that limits to direct educational and does not include...and that would place in the purview of the executive director administrative positions below principal.  so I think that has been a question thus far.

 

CG:  Thank you for the clarification.

 

KW:  I just need clarification.  What are you allowing the superintendent to decide?  I’m a little unclear here.  Anything to do with curriculum and instruction or, or...?

 

SL:  The delegation as it exists right now says, I believe, that the superintendent has the authority to make day-to-day personnel decisions up to a head count of 4,320 and below the rank of principal.  And that has led to a fair amount of questions as to what is below the rank of principal.  Is an administrator in a school below the rank of principal if they report to the principal or are the, as an administrator, considered central office staff?  So the question is if you enunciate “teachers, paraprofessionals, vice-principals and principals,” it’s limited to those direct educational people and does not involve the executive director in educational, pure educational, decisions, but rather would allow the executive director authorization in the administration and management and business positions inside of a school or centrally to review those decisions and act accordingly.

 

KW:  Review with the superintendent or review on your own?

 

SL:  I don’t know what the motion says, I’m sorry.

 

CVR:  Is there a simpler way to state what you’re trying to get to

 

SL:  It would be “subject to the approval of” so it would be working with...it would have to work with the superintendent.

 

KW:  OK.

 

SL:   So somebody would have to make the motion...make the movement and then it would be subject to the approval of the executive director working with and on behalf of the control board.

 

CVR:  No problem with that?

 

CG:  I think we’ve done a terrible job of explaining it, but I think we’re just clarifying all positions, outside of the four categories you described would require your [the executive director’s] authorization.

 

SL:  Yes.

 

CG:  As well as the superintendent’s.

 

SL:  Yes.  It’s my understanding, yes.

 

CVR:  That’s your motion there just restated

 

CG:  That’s my motion as best I could get out of...and then there... [laughter]

 

KW:  Are there going to be other motions?

 

CG:  No, I’m going to separate out the other motion, because I think people want some discussion on that.

 

CVR:  OK, fine.

 

KW:  I just feel it’s appropriate for me to make a statement here, because I...we’re all sort of dancing around it, but I do feel that this has...reflects on the Springfield city council and a colleague...

 

CG:  That is what I was [unintelligible]

 

CG:  Yeah.   OK.

 

CG:  This is just for the normal operation of the search and how to deal with normal operations [unintelligible].

 

CVR:  I’d like to second the chairman’s motion as it’s been stated up to this point.

 

SL:  So just to summarize, it would be to...

 

[unintelligible; laughter]

 

SL:  OK.

 

KW:  Just go with what you’ve got.

 

WL:  Let’s see if I can summarize:  Authorize the chairman to appoint a committee of five...and hire...with the use of a consultant..... Now, do you want to do the hiring and firing as separate to the [unintelligible]?

 

CG:  [unintelligible] in the second one; that’s simplest.  Do we all understand what that one is?  Let’s do them one at a time, OK?  Just the one you said.

 

WL:  Which one we’re going to do, hiring and firing or just the search committee?

 

CG:  The search including the consultant and the committee of five to conduct such search.

 

[Unknown member]:  Very good.

 

WL:  OK

 

RN:  So moved.

 

**MOTION PASSES UNANIMOUSLY.

 

CG:  Let me just comment as I should have said it before.  I want to reiterate this:  I think it’s clear when you study what’s going on here, that significant important progress has been made in specific areas over the last six years in spite of both very challenging fiscal and...situation as well as difficult labor negotiations and a lot of turn-over of teachers.  I think there are a lot of things to be proud of in the system, and I understand why the school committee is divided in its feelings.  I think this decision is as well-said by a couple of you a reflection on our desire to do the very, very best we can for the next period of time for Springfield, so I feel like I owe that to Dr. Burke based on the, all the work we’ve all done to put that clearly on the record from my perspective.

 

OK second motion, why don’t you [SL] state it?

 

SL:  The second motion would authorize the executive director to appoint and set the terms and conditions of employment for personnel necessary for the effective management and operation of the school department.  Would you like me to continue?

 

CG:  Is that in your opinion a restatement of what we...hang to that....Wayman?  [To  SL:]  Are you restating what you think we just said up here about which jobs are jointly and which jobs are uniquely?

 

SL:  No.  that is...you had mentioned that briefly at the beginning.  Why don’t you propose...lay out that motion.

 

SL:  The...yes, OK. 

 

CVR:  It seems to go in a different direction than what we...what you were saying before.

 

CVR:  I agree.  I’m a little ...

 

CVR:  What you’ve just said is all-inclusive...by you, all alone.  Little confusing.

 

SL:  My apologies, because I believe I  misunderstood myself, so you didn’t actually miss anything, Mr. Clerk.  The motion would be that the hiring, firing of all school department positions other than teachers, paraprofessionals, vice-principals and principals are subject to the review and approval of the executive director, acting on behalf of the control board.

 

CVR:  Is that...Oh, I’ll make that motion.

 

RN:  Second

 

KW:  Isn’t that what we just did?

 

CG:  No, that was the search.

 

KW:  Of just the search OK.

 

CVR:  No, we’ve done the search.

 

WL:  This is on the hiring and firing the position of teacher, paraprofessional, vice- principal and principal be subject to the review and approval of the executive director under the authority of the chairman of the control board.

 

**MOTION PASSES UNANIMOUSLY.

 

KW:  I reluctantly agree only because it’s the law.  I don’t agree with it in principle, but I agree with it because it’s the law.  I guess it’s a yes, a reluctant yes, small letters, please. [laughter]

 

CG:  So, the third matter under...and I think you’d like to speak our on it, President Walsh.

 

KW:  Yes.  the third matter would concern the--and I’m not sure what the status is...an individual on the Springfield city council accepting a position in the Springfield school department.  Is that what we’re all talking about?

 

CVR:  Yes.

 

KW:  And I...first of all, I don’t understand, and not that this is the place for the discussion, why the individual couldn’t do both, why someone who is...who would work in the school department can’t still stay on the Springfield city council.  I don’t know if that’s what we’re discussing today.  My preference would be if the individual was qualified and gets the job, and I certainly feel that experience in government should be considered highly and shouldn’t be a deterrent, that the individual can stay on the Springfield city council. 

 

CVR:  Well, I’d like to say something on this.  I knew nothing about this until I read yesterday morning’s paper in spite of the fact that I’m chairman of the school committee.  Dr. Burke never shared with me that he wanted to create a new position for an administrative head to run the International Baccalaureate program.  I’m surprised at that.  The article went on to say that he, after interviewing certain people, had recommended—and I am taking it just from the newspaper—recommended Councilor Mazza-Moriarty to fill this position. 

 

I’m quite familiar with the Baccalaureate program; I think it’s an excellent program; it’s been extended and expanded with, really, the unanimous support of the school committee over the last year or two.  It’s done a great job at Commerce for some five or six years now, and now it’s going on the middle school and the elementary school level, so this is extremely important.  And so I’m...if this makes sense, in other words, if this will give us a better Baccalaureate program, then I’m all for it.  But, again, I want to say that, strangely enough, the whole initiative was not shared with me.  I don’t know whether it was shared with other members of the committee.  And so I learned of it first from Mr. Lisauskas I think day before yesterday morning’s paper, and you [SL] told me that he had just shared it with you for the first time, so that’s two afternoons ago, and you had asked him for the paperwork on...because he indicated that Councilor Mazza-Moriarty had come out really flying colors, top of the list. 

 

And you asked him for the paperwork and then I said I want to see the paperwork.  When I read the paperwork, I saw that one of the unsuccessful applicants has her PhD in education and had run a program of this type, a Baccalaureate program, in another community for at least two years and that another applicant was a principal of longstanding, currently a principal, I believe, in Leominster, significant qualifications.  And as I went, and I don’t know who the others, the list that you got only contained the top three evidently.  And my reading of it is that she was less qualified than either one of the other two people I’m talking about.  I don’t know the people. 

 

I want to say this, that my relationship with Councilor Mazza is a very positive one.  I like her as a person.  I think she’s a valuable member of the city council.  I think she’s thorough, she works hard, she’s concerned about the city and everything, but that’s not the issue here.  The issue is whether or not we’re going to hire the most qualified person that we can find for any job, especially one that is as significant as this.  And we’ve got to stop playing games around here.  We’ve got a school department that really isn’t realizing its full potential.  The Baccalaureate program is one of those things that was created at significant expense to make it a better system and a more enticing system.  And so if we’re going indeed have an administrative head, it should be somebody who is extremely well-qualified. 

 

And so I don’t know what your fourth paragraph was going to say, but I really felt constrained in my last meeting (and I’m unhappy to find myself in this position, because I don’t want Mazza-Moriarty to misinterpret it).  My...is concerned with what we’re trying to accomplish around here and I just think that she’s not the most qualified on the list that I saw.  Now maybe can be convinced later.  I’m not going to be here, so, at the very least, I would hope that the executive director, under the authority, I guess, given you [SL] in the previous vote would reject that recommendation and to from there.  You might want to call for a new process.  I don’t think it would take that long.  But, you know, I think especially when you have somebody who’s in the government and that person who’s in the government all of a sudden goes into a significant position at considerable money... And I think of the public, it’s very cynical about what we do in government anyway, sitting out there and saying “Oh God, there they go again.” 

 

So, you know, let’s do it the right way.  And if, in fact...let the chips fall where they may.  If somebody’s got a PhD, that’s worth something.  If somebody is recognized enough in the educational world to be a principal for a significant amount of time in a major city in Massachusetts.  That counts for something.  And there are 4500 jobs in the school department.  I’m not saying that Councilor Mazza-Moriarty is not qualified for any of those jobs; she clearly is.  But I’m saying that on this particular job, I really felt badly when I saw yesterday’s paper, because I said “Oh God, for crying out loud, now we’ve got to talk about that tomorrow, too.”  So here we are.

 

KW:  Interesting note to end on.

 

CG:  Well my motion just to clarify, was, knowing that there were both public comments and member concerns about process and not even being entirely clear whether this is, as you say, Mayor, a recommendation, a hiring or whatever.  The executive director clarifies with me that whether an action has been taken or only a recommendation made, in any case, that we have as a body a 14 day period to review any such decisions.  And my recommendation was going to be that...my motion was going to be to simply say, to make clear that with regard to this particular action which is just a subset of all such decisions, that in the absence of enough information and, you know, on this particular thing to have an opinion of my own....

 

CVR:  Including me.

 

CG:  And you say the same thing.  I mean...I...you know the councilor better than I do.  I know her a bit, you know, but I have no notion of what...I don’t know the other people, I don’t know what the process really was.  To simply vote to specifically, because I think Mr. Lisauskas felt it’s a little less clear that if she’s actually been already hired (or anyone has) that 14 day period then is a control board right, not necessarily an executive director’s.  So I’m making clear that in this...that to the extent that we...it falls under that, we delegate to Mr. Lisauskas our authority as a group of five...to our powers as a group of five to look specifically at this hiring and take action as appropriate either to allow it to pass the hiring if it’s already been made (and that’s where I’m not clear on it) or if it hasn’t that if he finds that it wasn’t, you know, in the best interest something...you’ve raised, you know, real concerns about here, then to take that action.  So, but to delegate to him our authority, because we’re not going to meet again within 14 days.  And I don’t think...some of the members feel as I do that we don’t really want to be the hiring committee collectively for the school department for a position like this; we’re not qualified.

 

CVR:  That’s why it’s being delegated.

 

CG:  Correct.  That’s why I propose it explicitly here today. 

 

KW:  Mr. Chairman, I would be concerned that the hiring...if, if Councilor Mazza-Moriarty has been hired, I don’t know if there’s a contract or not, I would not like to see that rescinded and I don’t think it’s a deterrent to be in government and move on to another position.  And you know how I feel about the hiring, so I vote to support my colleague. 

 

CG:  So the motion is to delegate to him that action, not...

 

KW:  Well, someone’s already been hiring, I kind of think it’s a rotten thing to take it back, so...

 

CG:  None of us are enthusiastic.  We have this 14 day right, and I’m only asking for a motion to delegate our 14 day right, if it’s even relevant here, to Steve. 

 

CVR:  Do you have...would you read out the words?

 

CVR:  [reads] “To delegate to the executive director the authority to alter or rescind any personnel action or decision of the superintendent within 14 days after receipt...after receipt of notice of such action or decision.”  Yes, I’m doing it in general.  Yes, that’s my motion.  It’s a general motion elicited by this discussion, but it may come up at other moments. 

 

**MOTION PASSES 4 TO 1; KW voting no.

 

CG:  Again for the record, I just want to be clear.  I’m not voting on whether I think the councilor is qualified or not.  I don’t know.  I don’t even know if she has the job.  I’m only voting to delegate the authority we do clearly have broadly to you, Mr. Lisauskas, since the members of this group have expressed concerns about that and other situations. OK.

 

New Business;  Job of Coordinator of Police Civilian Review Board

 

CVR:  I have one item under new business.

 

CG:    Yes indeed.  We have an item under new business.

 

KW:  I think we’re going to be here until 2008.

 

CG:  I know.

 

CVR:  Well, God, you know... 

 

CG:  Mayor, are you filibustering?  [laughter]

 

CVR:  It’s like a filibuster, right, hanging in there?  What are your plans for tomorrow?

 

CG:  We have one item, I believe, of new business.

 

CVR:  Yeah and I’m sorry that Mayor Sarno isn’t here.  He’s been here most of the day, and I think that’s been very helpful for all of us.  But, again, I have to react to something I learned about in the press, and I’m troubled by it, because it has to do with the job of coordinator for the civilian review board which I think is an extremely important situation, and I’m not sure that the Mayor-elect has any realization that I think I personally have spent at least 100 hours on this issue in the last six to nine months.  And city solicitor Pikula has at least equaled my time if not exceeded it.  Commissioner Flynn was in on many of these meetings, too. 

 

But to set the stage properly, over the last 10 or 15 years, the relationship between the minority community and the police department has not been one that we can really look back on with any great pride.  There’s a volatility to this and a concern about it.  And I think we’ve made significant progress.  But it was clear when we went to the commissioner form rather than chief, and the then control board made a commitment, a public commitment, that as part of the change over that we would create a civilian review board.  At the same time, we had a bad incident happen in the South End involving Mr. Greer, and a suit was brought up before the MCAD [Massachusetts Commission against Discrimination].  The pastors’ council weighed in; they felt very offended on behalf of the community, and out of the whole MCAD thing came the suggestion that we meet somewhere in the middle and as a part of a...in addition to a monetary settlement with Mr. Greer (which was substantial) that there really be an acceptance of the idea of a civilian review board.  I think James Morton can speak eloquently to the history and to the significant importance of this.  I buy into it totally. 

 

            And so what we tried to do, realizing this isn’t something you do on the back of an envelope...if we hired what we thought was the best expert in the United States of America, a Professor McDevitt who’s primarily based at Northeastern University and who has really done the leg work and the spade work on civilian review boards in many, many cities of the United States.  And we brought him in here as our consultant and he worked with us painstakingly.  And then we met with the pastors’ council and the MCAD staff and we were finally able to fashion it and finally ended up several months ago when I, using my power as mayor, enacted an executive order which spells all this out.  The important thing...and I don’t believe that Domenic Sarno has ever seen this document—he’s free to see it, and I’d be delighted to share it with him, but it’s a big thick booklet that’s prepared by Professor McDevitt which talks about all of the aspects of the civilian review board, but with special emphasis on the identity or the necessity of a job as coordinator.  Someone’s got to run this thing.

 

            And I just have in front of me a couple of paragraphs from that report having to do with this job of coordinator of the civilian review board.  He makes it very, very clear that this is the lynchpin of the board.  He goes so far as to say that without a full-time, full-time coordinator the chances of this being a successful enterprise for the city of Springfield is very remote.  In other words, we’re not going to get to where we really conscientiously have to get to and want to get to unless we make the investment in a full-time coordinator, because not only is the coordinator the administrator of the process, he or she is to handle all the logistics of the many hearings and is also the communicator to the entire city of the reasons for the review board and the way it works and so we’ve got an awful lot invested in here.

 

And so I was very, very surprised when I heard that the new mayor had indicated that as part of the new duties of his new chief of staff, she would take over the, among other things, the responsibilities of coordinator of the civilian review board.   And that, as I understand is on the evening television news, he was stating that the present occupant of that job, Melinda Pellerin-Duck, would have no place in his administration.  Well, first of all, that’s no way to let somebody know that kind of news.  Secondly, my guess is he’s never read these words, but...and I have enough confidence in his common sense and judgment to realize when he’s better informed that he’s got to have a full-time coordinator.  And I don’t think he has any idea how busy he’s going to be and his chief of staff is going to be in trying to get on top of a very, very dynamic and volatile city.  And to compromise the effectiveness and the integrity of this job by having somebody do it on a part-time basis is seriously under-cutting what should happen.  And I would hope that the—I know that we talked earlier when you [SL] made your resume of the relationship between the mayor and the control board that no jobs...you know, that the control board really has, under the statute, the authority.  Through what’s happened, it’s been a shared authority, but the ultimate authority is in the control board. 

 

And I’m saying that first of all, Melinda Pellerin-Duck who’s been an employee—not only an employee--a treasured employee of the city for 27 years, who was teacher of the year in Massachusetts three years ago, honored with visits to the White House and to the governor’s office and everything else.  She was an ambassador of Springfield.  To be treated in such a shabby fashion is just absolutely unthinkable.  And she’s a woman of great significance, great accomplishment. great integrity of purpose.  She is a master communicator.  She was really the nuts and bolts of the International Baccalaureate program, frankly, for five years at Commerce, and in the last several years has developed a criminal justice program at Putnam.  And the main reason that I chose her for this job of coordinator was because of the fact that she was a master communicator.  She’s in—part of this is education.  Part of it is to say to people who are disaffected “Look at, we...we’re going to straighten up and fly right.  And one of the things we’re going to do is to make sure, not only there is a process, but the process has integrity and so on and so forth.”  And we’ve got so much riding on this that it’s not even funny. 

 

And so I’m hoping that...and I mean I’m glad to reach out to the new Mayor and I would like to have the executive director work with me on this.  I would hope that the control board would stand behind the concept of a full-time coordinator.  I’m not spending money for the sake of spending money.  I ‘m spending money because of the fact that this job demands it.  We have a department of 600 people, we spend $40million; this city can be off to the races very, very quickly if there isn’t the kind of respect in that police department that is entitled...that every single person, regardless of their race or color is entitled to.  And I can’t think of a better person or a person who really is a better ambassador of our city than Ms.Duck.  And I have great respect for the Mayor and also for Denise Jordan.  I think she’s an outstanding woman; I think she’ll do a bang up job for him as chief of staff, but I don’t think either one of them really understood not only the demands that are going to be made upon that office, because it’s just pandemonium 24/7, and it’s not going to die down just because you got a new mayor.  In fact, it will accentuate, and there’s a learning process somewhere in there, too. 

 

But this is a very important thing and I wanted to be able to voice it in front of the board and I was happy when I saw the Mayor-elect here earlier, because I figured this was we could be really essentially talking to each other.  But I have no pride of authorship.  I’m delighted to meet with him, but I am hoping that the would be some support for this, because this is really...this is part a Melinda Pellerin-Duck problem and it’s an even bigger problem as to whether or not this board is ready to stand behind the executive order that I issued in good faith long before the election, because of the fact that this was the culmination of a two-year commitment and a let’s say a six months journey in doing right and setting in motion something that should have been set in motion 10 or 15 years ago. 

 

I also am informed that there is no city in the United States of America with a program for civilian review board that does not have a full-time coordinator.  So here we are, change of administrations, we’d be the only one and it just isn’t going to work.  So I just wanted to...as I say, I will reach out to the Mayor, and talk to him about it, but I would like to, again, at least inform the board through what I’ve just said, and hope that the executive director can work with me and see if we can’t come to some happy medium ground that is going to serve what he’s interested in and also is preserve the integrity of this position.  And, and also the duty that I think that we as intelligent and responsible employers owe to a woman of high stature, an outstanding woman who has given of herself really for the better part of her adult life. 

 

JM:  I’d like to support what Mayor Ryan said.  We’ve spent a lot of time and effort in our city trying to develop better relationships between our police department and the community.  And the creation of the civilian review board was an important step in that process.

 

 We understand how volatile and fragile that relationship is.  It takes very little to tear it down, and so anything that we can do to support this position as a full-time position in our city is crucial.  A lot of ground work has been done; they’ve established an incredibly talented board, review board itself, that should be supported moving forward.  I’m hoping that Mayor-elect Sarno will see the value of this process and also recognize the importance of having a full-time person managing our civilian review board.  Again, this is...to create the civilian review board represents about 15 years of work on behalf of many of us here in our city to try to create the kind of relationship between the community and the police that is effective, that doesn’t create an “us and them” mentality, and that fosters the police and the community working together to solve the challenges that effect our city in the area of public safety.  This is such a crucial position. I’m just, you know, hoping that, you know, he’ll see the value in keeping the position as a full-time opportunity moving forward.

 

CVR:  I appointed nine citizens to this board of three Caucasian, three African-American, and three Hispanic. I think it’s an honor roll; I mean...and I want to tell you that, in the last year or two, I haven’t had any appointments to make that so caught the imagination of the people at large as this.  I was deluged with calls of responsible, significant people from all walks of life saying, “I’d love to be on there.”  So I think the citizenry understands how important this is, and I’m just very...Edgar Alejandro who many of you know who was appointed by the commission (I didn’t make the Mayor pick him the chairman).  The commission elected Edgar who was one of my appointees as a member as the chairman, an outstanding person; you go on from there.  So the nine people are top drawer.  This is a rare opportunity for this city to get ahead of the curve on something as volatile as and as important as our relations between the minority community especially... and it’s not just the minority community.  We have letters and complaints from citizens of all walks of life, all colors who feel in some way that they have not been treated respectfully or responsibly by the police department.  There’s always two edges to the story.  By the same token, this is a very serious matter, and I am hoping for the support of the board as we go forward in the next week or two to straighten this out.

 

KW:  Mr. Chairman, it seems we’re going to be ending with some dicey matters here.  Interesting a lot of the things we’ve discussed haven’t been that controversial, but today, we’ve really tackled a lot of subjects.  But I do not disagree with the need for a full-time coordinator for the civilian review board.  (I’m also going to put in a plug for Commissioner Fitchet who has the support of the African-American community.)  But I would have to say that I think the Mayor-elect, as Mayor Ryan did, has the right to name his own staff, and I think this is a pretty sticky situation here.  And, you know, he’s been elected; we’ve got to respect who he wants to have working closer, close to him and who he relies on for advice.

 

CG:  Any other new business?

 

**MEETING ADJOURNED.