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05-10-12 Ordinance Committee Minutes
TOWN COUNCIL MAJORITY OFFICE

ORDINANCE COMMITTEE

May 10, 2012
                                                                       
PRESENT Chair Rich Kehoe, Councillors Bill Horan and Eric Thompson

ALSO               
PRESENT       Michael Walsh, Finance Director
                

CALL TO ORDER   

Chair Kehoe called the meeting to order at 5:50 p.m.


APPROVAL OF MINUTES

January 31, 2012 Meeting

MOTION  By Eric Thompson
                seconded by Bill Horan
                to approve the January 31, 2012 meeting minutes.
Motion carried 3/0.


OPPORTUNITY FOR RESIDENTS TO SPEAK

None


OLD BUSINESS

Bidding Procedures: §10-7 RFQ for State and/or Federal Projects

The Chair reviewed the latest status of the bidding procedures and noted that in the last set of minutes for the January 31st Ordinance meeting, Rich Gentile, Assistant Corporation Counsel, was going to provide a draft of the bidding procedures to align the town’s bidding requirements regarding federally funded projects with the federal law dictating the procedure to be followed when using federal funds.  The Chair noted that the General Assembly recently passed legislation which may have the same effect as what we are attempting to do at the town level.  The Chair will ask Attorney Gentile to review that particular public act to determine if (1) it covers municipalities and therefore, we will not need to do anything further at the local level; or (2) if it does not cover municipalities, would the town ordinance reflect the similar language to what the General Assembly adopted.


NEW BUSINESS

Article 4 Solar Energy Tax Exemption: §10-24 Property Tax Exemption

Mike Walsh, Finance Director, reviewed the request for property tax exemption ordinance with regard to solar panels that are built on
municipal property with the electricity being used for the benefit of governmental buildings.  He noted that the current tax abatement
ordinances with regard to solar panels do not contemplate a third party coming in and building solar panels on governmental property – the
electricity generated by such panels being used for governmental buildings on that property.

Attorney Gentile noted that the state laws regarding tax abatements for solar equipment do not empower municipalities to abate taxes with
regard to solar panels on governmental property.  Therefore, the town cannot adopt such an ordinance.  Mike Walsh pointed out that
the contract that the Town Council will review on Tuesday (May 15th Town Council meeting) with regard to solar panels will include a
provision that addresses the property tax implications of the solar panels.  Mr. Walsh also noted that if the company installing the
solar panels has to pay property taxes the company will lose money on the project and therefore will not agree to build those solar panels.  
Additionally, Mr. Walsh stated that the town, over a twenty year period, would receive $800,000 in electricity cost savings and therefore it
does not need the property tax revenue in order for this project to inure to the benefit of the taxpayers.

The Committee agreed to take no further action, but will take up this issue of the contract at the regular Town Council meeting of May 15th.


ADJOURNMENT
MOTION  By Eric Thompson
                seconded by Bill Horan
                to adjourn (6:38 p.m.)
                Motion carried 3/0.


cc:  Mayor Leclerc
      Rich Gentile, Assistant Corporation Counsel
      Tim Bockus, Public Works Director