MINUTES - Executive - 10/23/2003 CITY OF SALEM 279
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OCTOBER 23, 2003
EXECUTIVE SESSION
A Regular Meeting of the City Council was held in the Council Chamber on
Thursday, October 23, 2003 at 7:00 P.M. for the purpose of transacting any and all
business, at which time, the City Council, be recorded roll call vote, went into Executive
Session with the City of Salem Legal Department, to discuss the real estate appraisal for
the property owned by National Grid. Notice of this meeting was posted on October 17,
2003 at 9:19 A.M.
All Councillors were present.
Council President Thomas H. Furey presided.
Present were George Sansoucy P.E. Engineer and Fred Smith. They are
consultants and they appraise on special purpose utilities matters for Cities and Towns.
We work for your through Solicitor John Keenan on valuation and utility issues related to
National Grid and US Gen.
Councillor President Furey then called upon Solicitor John Keenan to address the
Council regarding the National Grid property issue.
Solicitor Keenan stated that PG&E generates electricity and National Grid
transmits the electricity. We brought in the experts to explain to you. The PG&E property
have two pieces of the puzzle there's PG&E who generates the electricity and National
Grid who transmit the electricity.
We put in for a request for approval of an agreement under the existing
Agreement for $877,767 million is the valuation of the property within the $300,000 is
toward transmission. No rhyme or reason except that was the agreement. That changed
this year FY04 through FY07 the agreement now splits the cost between the generation
from the transmission. The initial offer was $350,000 that changed to $400,000. They are
looking at other properties across the Country to see what they sold for. This portion of
the business is still regulated not deregulated. Now let me have the experts explain how
we cam to this value.
Fred Smith stated that the transmission property is still regulated the net book
value is $7.5 million. The appellate tax court states that if
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Personal property value is $14.75 million, $7 million real property for a total of around
$21.75 million.
Fred Smith stated transmission property still regulated appellate tax board net
280 CITY OF SALEM
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OCTOBER 23, 2003
EXECUTIVE SESSION
See canister in vault for minutes of Executive Session. Minutes cannot be released
without the approval from the City of Salem Legal Department.
On the motion of Councillor DeToma, the Executive Session adjourned, and the
regular meeting continued.
ATTEST: DEBORAH E. BURKINSHAW
CITY CLERK