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
This Contribution Agreement (“Agreement”) is made this 14th 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.”
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:
- 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”).
- 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.
- 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.
#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 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.
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.
#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
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