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
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