MINUTES - Special - 12/15/2011 (002)
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DECEMBER 15, 2011
SPECIAL MEETING OF THE CITY COUNCIL
A Special Meeting of the City Council was held in City Council Chambers on
Thursday, December 15, 2011 at 6:45 P.M. for the purpose of taking action on the setting
of the Tax Rate for Fiscal Year 2012 and related matters. Notice of this meeting was
posted on December 9, 2011 at 11:36 A.M.
Absent were Councillors Ronan, Prevey and Lovely.
Council President Jerry L. Ryan presided.
Councillor Pelletier moved to dispense of the reading of the previous meeting. It was so
voted.
Councillor Sargent recused himself and left the Chamber.
#767 – AUTHORIZE MAYOR TO ENTER INTO AGREEMENTS WITH DOMINION
ENERGY REGARDING THE SALEM HARBOR POWER PLANT
The following Order recommended by the Mayor, was adopted by roll call vote of 7
yeas, 0 nays, 4 absent. Councillors Sosnowski, Pinto, Pelletier, O’Keefe, McCarthy, Furey
and Ryan were recorded as voting in the affirmative. Councillors Sargent, Ronan, Prevey
and Lovely were recorded as absent.
ORDER: That the Mayor is herby authorized to enter into a Contribution Agreement by
and between Dominion Energy Salem harbor, LLC (“Dominion”), owner of the Salem
Harbor Station generating plant, and the City of Salem for calendar year 2012 whereby
Dominion shall make a contribution payment to the City of Salem for Fiscal Year 2012 in
the amount of $259,500.00 subject to the terms of the Agreement attached herto.
Councillor McCarthy moved suspension of the rules to allow the Mayor to speak. No
objection.
The Mayor explained the agreement.
CONTRIBUTION AGREEMENT FOR 2012
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This Contribution Agreement (“Agreement”) is made this 14 day of December,
2011, by and between Dominion Energy Salem Harbor, LLC (“Dominion”), a Virginia
limited liability company and the owner of the Salem Harbor Station generating plant (the
“Plant”), and the City of Salem (the “City”), each individually a “Party” and collectively the
“Parties.”
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DECEMBER 15, 2011
SPECIAL MEETING OF THE CITY COUNCIL
WHEREAS the City provides to the Plant public safety, traffic management and
other municipal services that require significant resources to maintain at their current
levels; and
WHEREAS Dominion recognizes that the City and its citizens would benefit from an
extraordinary contribution to help meet the capital needs associated with providing those
services;
NOW, THERFORE the Parties agree as follows:
1. Contribution: Dominion agrees to make a contribution in calendar year 2012 of
an amount which is the difference between $1,750,000 and the payment in lieu
of taxes made by Dominion consistent with the terms of the Payment in Lieu of
Taxes Agreement for Fiscal Year 2012 executed between the Parties this day
(the “2012 PILOT”).
2. Use of Contribution: The City agrees to use the contribution for exclusively
public purposes such as capital projects and/or replacement of longer-lived
assets such as vehicles and heavy equipment. Dominion and the City agree
that this contribution shall not be construed by Dominion or the City as a tax
payment or a payment made in lieu of a tax.
3. Timing: Dominion shall make the contribution for 2012 within ten (10) days after
the conditions precedent in the 2012 PILOT have been satisfied and a tax bill
for the third quarter of Fiscal Year 2012 has been received by Dominion.
CITY OF SALEM DOMINION ENERGY SALEM HARBOR, LLC
By: s/Kimberley Driscoll By: s/Alma Showalter
Mayor Controller – Taxation
Dominion Resources Services, Inc.
As Agent For: Dominion Salem Harbor, LLC
Councillor McCarthy moved for immediate reconsideration in the hopes it would not
prevail. Reconsideration was denied.
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DECEMBER 15, 2011
SPECIAL MEETING OF THE CITY COUNCIL
#768 – AUTHORIZE MAYOR TO ENTER INTO P.I.L.O.T AGREEMENT WITH
DOMINION
The following Order recommended by the Mayor, was adopted by roll call vote of 7
yeas, 0 nays, 4 absent. Councillors Sosnowski, Pinto, Pelletier, O’Keefe, McCarthy, Furey
and Ryan were recorded as voting in the affirmative. Councillors Sargent, Ronan, Prevey
and Lovely were recorded as absent.
ORDER: That the Mayor is herby authorized to enter into a Payment in Lieu of Taxes
Agreement by and between Dominion Energy Salem harbor, LLD (“Dominion”), owner of
the Salem Harbor Station generating plant, and the City of Salem for calendar year 2012
whereby Dominion shall make a payment in lieu of real and personal property taxes to the
City of Salem for Fiscal Year 2012 in the amount of $1,490,500 subject to the terms of the
Agreement attached hereto. (copy on file in the City Clerks Office may be viewed during
normal working hours)
Councillor McCarthy moved for immediate reconsideration in the hopes it would not
prevail. Reconsideration was denied.
Councillor Sargent returned to the Chambers.
(#721) – APPR. TO REDUCE GROSS AMOUNT TO BE RAISED BY TAXATION
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted.
ORDER: That the sum of One Million Dollars ($1,000,000. 00) is hereby
appropriated from the “Fund Balance Reserved for Appropriation – Free Cash” account to
reduce the gross amount to be raised by taxation when the Fiscal Year 2012 tax rate is
set in accordance with the recommendation of Her Honor the Mayor.
(#722) – APPR. TO REDUCE GROSS AMOUNT TO BE RAISED BY TAXATION
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted.
ORDER: That the sum of Nine Hundred Ninety-Seven Thousand, Forty-Two
Dollars ($997,042.00) is hereby appropriated from the following “Receipts Reserved for
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DECEMBER 15, 2011
SPECIAL MEETING OF THE CITY COUNCIL
Appropriation” accounts to reduce the gross amount to be raised by taxation when the
Fiscal Year 2012 tax rate is set in accordance with the recommendation of Her Honor the
Mayor.
(#726) – ACCEPT SEC. 4 CH. 73 ACTS OF 1986 FOR FY 2012
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted by roll call vote of 8 yeas, 0 nays, 3 absent. . Councillors
Sosnowski, Sargent, Pinto, Pelletier, O’Keefe, McCarthy, Furey and Ryan were recorded
as voting in the affirmative. Councillors Ronan, Prevey and Lovely were recorded as
absent.
ORDER: That the Mayor and City Council accept the provisions of Section 4,
Chapter 73 of the Acts of 1986 for Fiscal Year 2012, and that such additional exemptions
granted be 100% of the statutory exemption amounts, provided all other qualifications
specified in said Section 4, Chapter 73 of the Massachusetts General Laws are met.
(#730) – RESIDENTIAL FACTOR
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted by roll call vote of 6 yeas, 2 nays, 3 absent. Councillors
Sosnowski, Sargent, Pinto, McCarthy, Furey and Ryan were recorded as voting in the
affirmative. Councillors Pelletier,and O’Keefe were recorded as voting in the negative.
Councillors Ronan, Prevey and Lovely were recorded as absent.
ORDER: That the City of Salem adopt a Residential Factor of 86.5208 % for Fiscal
Year 2012.
Councillor O’Keefe moved for immediate reconsideration in the hopes it would not prevail.
Reconsideration was denied.
(#731) – OPEN SPACE EXEMPTION
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted by roll call vote of 8 yeas, 0 nays, 3 absent. Councillors
Sosnowski, Sargent, Pinto, Pelletier, O’Keefe, McCarthy, Furey and Ryan were recorded
as voting in the affirmative. Councillors Ronan, Prevey and Lovely were recorded as
absent.
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DECEMBER 15, 2011
SPECIAL MEETING OF THE CITY COUNCIL
ORDER: That the City of Salem NOT adopt an Open Space Exemption for Fiscal
Year 2012.
Councillor McCarthy moved for immediate reconsideration in the hopes it would not
prevail. Reconsideration was denied.
(#732) – RESIDENTIAL EXEMPTION
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted by roll call vote of 7 yeas, 1 nays, 3 absent. Councillors
Sosnowski, Sargent, Pinto, O’Keefe, McCarthy, Furey and Ryan were recorded as voting
in the affirmative. Councillor Pelletier was recorded as voting in the negative. Councillors
Ronan, Prevey and Lovely were recorded as absent.
ORDER: That the City of Salem NOT adopt a Residential Exemption for Fiscal
Year 2012.
Councillor McCarthy moved for immediate reconsideration in the hopes it would not
prevail. Reconsideration was denied.
(#733) – SMALL COMMERCIAL EXEMPTION
Held from the last meeting of December 8, 2011, the following Order recommended
by the Mayor, was adopted by roll call vote of 7 yeas, 1 nays, 3 absent. Councillors
Sosnowski, Sargent, Pinto, O’Keefe, McCarthy, Furey and Ryan were recorded as voting
in the affirmative. Councillor Pelletier was recorded as voting in the negative. Councillors
Ronan, Prevey and Lovely were recorded as absent.
ORDER: That the City of Salem NOT adopt a Small Commercial Exemption for
Fiscal Year 2012.
Councillor McCarthy moved for immediate reconsideration in the hopes it would not
prevail. Reconsideration was denied.
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DECEMBER 15, 2011
SPECIAL MEETING OF THE CITY COUNCIL
#769 – (#729) APPROPRIATION OF $20,000 TO MAYOR’S EXEPNSES FOR
DEMOLITION OF HOUSE
Councillor McCarthy offered the following report for the Committee on
Administration and Finance to whom was referred the matter of an Appropriation of
$20,000.00 from “Fund Balance – Free Cash” to “Mayor’s Expenses” for the demolition of
a house located at 38-40 Palmer Street, has considered said matter and would
recommend approval.
On the motion of Councillor O’Keefe the meeting adjourned at 7:55 P.M.
ATTEST: CHERYL A. LAPOINTE
CITY CLERK