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Managing Editor SPRINGFIELD The Merrill Lynch controversy, a proposed privatization of the city's parking meter attendants, the search schedule for the new police commissioner and the purchase of the Old First Church were just some of the issues discussed at the Jan. 17 meeting of the Finance Control Board and the first meeting at which Domenic Sarno was a part as the mayor of Springfield. Sarno was joined on the new incarnation of the board by the 2008 City Council President Bud Williams. Board Chair Christopher Gabrieli opened the meeting with an update on the investigation into the investments by Merrill Lynch that have lost the city $12 million. Gabrieli noted that while he could not say much about the on-going investigation, he expressed confidence the city will recover all of the money. He added the decision to involve the Attorney General has already proven to be a productive one, although again, not much could be said publicly about the investigation. Gabrieli explained Attorney General Martha Coakley has legal powers the FCB and the lawyers it has hired to explore the situation do not have. And with a smile, Gabrieli added the Attorney General isn't charging the city for her services. There was no mention of a request for $50,000 by City Councilor James Ferrera III to hire a local attorney for a City Council-driven investigation. Besides a team of lawyers hired by the Finance Control Board to help investigate the matter and the Attorney General, the Secretary of State is also involved in the investigation. On Jan. 16, Sarno announced he had asked State Auditor A. Joseph DeNucci to undertake a full audit of the Merrill Lynch investment and an audit of all other current city investments. "I am putting forth a rigorous effort to find out exactly what transpired and how the city ended up where we are today," Sarno said, concerning his request to DeNucci. "I will not settle for anything less than an exhaustive and open review." Sarno said in a press briefing after the meeting that investments made by Merrill Lynch with the city's funds into the sub-prime mortgage market were illegal under state law. In response to the Merrill Lynch situation, the FCB voted to place short-term investments in the Massachusetts Municipal Depository Trust (MMDT). The MMDT was established in 1977 as an alternative investment vehicle for local governments and is operated by the State Treasurer's office. As of 2006, the MMDT serves more than 550 public entities within the Commonwealth and manages approximately $6.5 billion in public funds. *** The possible privatization of the city's on-street parking led to a discussion concerning accepting a contract with the Springfield Parking Authority (SPA), which would increase enforcement of parking rules and boost ticket revenues. Sarno and Williams both questioned the details of the contract and the process leading to offering a contract with the SPA. FCB Executive Director Stephen Lisauskas said there was no provision in the contract to protect the jobs of the four parking meter attendants currently employed by the Police Department. While Sarno said the increase in revenue is attractive, he does not want the four city employees to lose their jobs or, if they work for the SPA, their pay or benefits altered. The FCB tabled discussion of the contract. When it came to approving an $11 million bond that would finance the new fire station on White Street, continued demolition of derelict buildings, sidewalk and road repairs as well as the purchase of the Old First Church, Sarno expressed concern over the purchase of the church. Although he acknowledged the church is "woven into the fabric of Springfield," he said its future use must be compatible with the use of the former hotel building at 31 Elm St. He also questioned how the assessment of $800,000 was reached and said he would like to see the property become commercial and added to the tax rolls. Sarno said that as mayor-elect he was not consulted or informed of the purchase last month of the building by the Ryan Administration. David Panagore, the city's chief economic development officer, explained that a shuttered abandoned church was unacceptable so the city moved quickly to take steps to preserve the building for future re-use. The appraisal was determined through potential re-use of the building. Since the downtown area now has an office vacancy rate of over 20 percent, Panagore said he doesn't think the building could readily be used for offices. He said that with the Request for Proposals for the former hotel at 31 Elm St. is also an invitation to comment on how the church could be used to complement a development of the hotel. Panagore said the insurance estimate to replace the building in case of fire was actually $6 million. After the meeting, Sarno told Reminder Publications he was pleased with Panagore's explanation and said his concerns came from a lack of communication about the previous administration's actions. *** On the two searches being conducted by the FCB, Gabrieli announced that at the next meeting he would reveal the names of the independent committee who will select the new superintendent of schools. The group will either have five or seven members and Gabrieli said he would be the chair. He did not indicate that any member of the School Committee would be part of the group. Some members of the School Committee appealed to Gov. Deval Patrick last month that they and not the FCB should be in charge of finding the next superintendent. FCB member James Morton said that in the search for a new police commissioner the acceptance of applications will be closed Jan. 21. Review and scoring of those applications would begin on Jan. 22 and be completed by Feb. 6. Invitations for interviews would then be made with the first round of interviews made on Feb. 25. On March 10, the finalists would have public interviews. Morton said the process would be "open and transparent." *** During the speak-out portion of the meeting, several residents, including City Councilor Patrick Markey, expressed the need for the city to keep the students together at the Renaissance School of Expeditionary Learning. Space problems at the school's location at the Van Sickle Middle School have spurred discussions to split up the school's sixth through twelfth grades. Seventh grade student Jesse Lederman delivered a petition to the board and said that all of the ideas the students and teachers have given School Superintendent Dr. Joseph Burke have been rejected. Sarno said after the meeting that he thinks what the school is doing is "wonderful." "The school is working," he said. In the short term he is working with school department officials to keep the school intact at Van Sickle, but in the long run it will have to have a permanent home. Sarno said that he has asked Lisauskas to look into how the city's crossing guards are being treated; an issue raised by one crossing guard, Pat Stefanowicz. Stefanowicz said the crossing guards have not had a raise in 10 years and a meeting with former FCB Executive Director Phil Puccia a year ago did not produce any results. She said that crossing guards used to work about an hour a day, but now because of the increased number of students who walk to school they work up to four hours. | ||||||
