April 12, 2010 Meeting Minutes

City Council Meeting
Minutes
April 12, 2010
Non public session to discuss contract negotiations in accordance with
RSA 91-A: 3, II (d) to be held following the City Council meeting.

City Council Chambers
7:00 p.m.

1. Mayor Bouley called the meeting to order at 7:00 p.m.

2. Invocation by Associate Pastor Darrin Forehand, Trinity Baptist Church.

3. Pledge of Allegiance.

4. Roll Call. Councilors Bennett, Blanchard, Bouchard, Mayor Bouley, Councilors Coen, DelloIacono, Grady, Keach, Nyhan, Patten, St. Hilaire, Shurtleff, Stetson, and Werner were present. Councilor McClure arrived late.

5. Approval of the March 8, 2010 meeting minutes.

Action: Councilor Nyhan moved approval of the March 8, 2010 meeting minutes. The motion was duly seconded and passed with no dissenting votes.

6. Presentation of a resolution in recognition of the Concord High School Boys Varsity Hockey Division I State Championship Victory.

Action: Due to conflicts in schedules, Concord High School Boys Varsity Hockey team were unable to attend this evening’s meeting.

7. Rundlett Middle School “If I were Mayor….” essay winner/presentations.

Action: Mayor Bouley recognized the essay winners Laura Braley, Meredith Dustin, Anna Stockman, Kristine Pedersen, and Hannah Linquata who read their winning essays. Flannery Black-Ingersell was also a winner but was unable to attend this evening’s meeting. Mayor Bouley explained that they will be taking each of the top essays and forwarding them to the Transportation Policy Advisory Committee in which members will look at the recommendations and try to incorporate them as to how to move forward in the city.

8. Labor Relations Committee report relative to the City Manager’s evaluation, in accordance with Section 21(b) of the City Charter. (To be submitted under separate cover)

Action: Councilor St. Hilaire explained that every year, pursuant to the City Charter, the City Council is required to determine whether the City Manager does a satisfactory job or not. He explained that each Councilor receives a questionnaire in January which are then submitted back to the committee which compiles all of the questionnaires into one final document. He added that once compiled, City Council meets and discusses the issues and how they feel that the City Manager has performed over the past year.

Mayor Bouley explained that it is the responsibility as a Council to take two votes this evening with the first being a public vote on whether the overall performance of the City Council Manager in office since last July has been satisfactory or unsatisfactory.

Councilor St. Hilaire moved that Council state that the City Manager has done a satisfactory job. The motion was duly seconded and passed with no dissenting votes.

Mayor Bouley explained that the second vote on the City Manager’s proposed contract is that the Council has reviewed the current contract and have made some suggested changes including: severance pay; salary; and retirement. He indicated that this contract is a public document and is available at the City Clerk’s office.

Councilor Nyhan moved approval of the contract changes. The motion was duly seconded and passed with no dissenting votes.

9. Agenda overview by the Mayor.

Consent Agenda Items

Note: Items listed as pulled from the consent agenda will be discussed at the end of the meeting following unfinished business.

Councilor St. Hilaire moved approval of the consent agenda, as amended, with items 41 and 45 moved to the end of the agenda for discussion. The motion was duly seconded. Councilor Shurtleff moved to remove item 10 because they found a different location. The consent agenda, as amended, passed with no dissenting votes.

Referral to Community Development

10. Street closure request from the Penacook Village Association (PVA) requesting permission to use the municipal parking lot located at the northeast corner of Village and East Streets in Penacook on Monday’s from 4:30 p.m. to 7:30 p.m.
June 7,2010 through October 11, 2010 for their Farmer’s Market.

Action: This item removed from the consent agenda. Request was withdrawn because another location was found.

Referral to General Services

11. Communication from Robert Baker suggesting the City of Concord investigate the possibility of using “Big Belly” solar trash compactors at local parks.

Items Tabled for a May 10, 2010 Public Hearing

12. Ordinance amending the Code of Ordinances, Title II, Traffic Code; Chapter 18, Parking; Article 18-1, Stopping, Standing, and Parking; Section 18-1-6, Parking, Prohibited at All Times in Designated Places, Schedule I; parking on the southern end of Storrs Street; together with report from the Deputy City Manager – Development.

13. Ordinance amending the Code of Ordinances, Title II, Traffic Code; Chapter 18, Parking; Article 18-3, Parking Meters; Section 18-3-10, Exceptions, Holiday Parking.

14. Ordinance amending the Code of Ordinances, Title II, Traffic Code; Chapter 19, Penalties; Article 19-1, Penalties, Procedure for Paying Penalties.

15. Ordinance amending the Code of Ordinances, Title II, Traffic Code; Chapter 18, Parking; Article 18-3, Parking Meters.

16. Ordinance amending the Code of Ordinances, Schedule II, Fines and Penalties appended to Chapter 1, Government Organization; Article 1-5, Fees, Fines and Penalties; Section 1-5-2, Fines and Penalties.

17. Ordinance amending the Code of Ordinances, Title II, Traffic Code; Chapter 18, Parking; Article 18-3-13, Restrictions on Use of Parking Lots and Parking Garages.

18. Resolution appropriating the sum of $665,000 including the authorization for the issuance of parking fund supported bonds and notes in the amount of $665,000 for installation of parking kiosks.

19. Resolution appropriating the sum of $155,790 in American Recovery and Reinvestment Act (ARRA) competitive energy efficiency Community Development Block Grant (EEGB) Funds for Energy Efficiency and Conservation Strategy Improvements to various city buildings, facilities and vehicles (CIP #325) and authorizing the City Manager to Enter into a contract for this purpose; together with report from the Deputy City Manager – Finance.

20. Resolution adopting the Penacook Village Tax Increment Finance Development Program and Financing Plan and Establishing the Penacook Village Tax Increment Finance District; together with a report from the Assistant for Special Projects. (For public hearing in May and final vote in June).

21. Resolution appropriating the sum of $408,816, including the authorization for the issuance of water fund supported bonds and notes to the amount of $250,000 and closing out capital projects in the amount of $92,816 and reserve and capital transfers of $66,000 for water main replacement in East, Crescent, and Walnut Streets.

22. Resolution appropriating the sum of $475,224, including the authorization for the issuance of bonds and notes in the amount of $285,000 and closing out capital projects of $57,324 and reserve and impact fee transfers of $132,900 to support implementation of the Penacook Village Tax Increment Finance District Development Program and Finance Plan. (For public hearing in May and final vote in June).

23. Resolution accepting and appropriating the sum of $15,900 from the New Hampshire Charitable Foundation for management and maintenance of municipal property; together with a report from the Assistant for Special Projects.

24. Resolution appropriating the sum of $175,000 from the Self Insurance Reserve Fund and the Recreational Impact Fee Fund to settle a lawsuit against the city and acquire two parcels of land - Map 72/A, Block 3, Lot 20, known as 472 North State Street; and Map 72/A, Block 3, Lot 8, known as Clarke Street; containing a total of 9.17 acres, for the purposes of recreational use; and authorizing the City Manager to enter into a purchase and sale agreement to purchase said parcels on behalf of and for the benefit of the City; together with a report from the Deputy City Solicitor.

25. Ordinance amending the Code of Ordinances, Title V, Administrative Code, Chapter 34 Personnel Rules and Regulations, Article 34-11, Civil Leave; together with report from the Deputy City Solicitor.

26. Ordinance amending the Code of Ordinances, Title V, Administrative Code, Chapter 34 Personnel Rules and Regulations, Article 34-11-1, Annual Leave; together with report from the Deputy City Solicitor.

27. Ordinance amending the Code of Ordinances, Title I, General Code; Chapter 14, Morals and Conduct; Article 14-2, Miscellaneous Police Regulations; together with report from the City Solicitor.

From the City Manager

28. Positive Citizen Comments.

29. Council meeting date calendar.

Consent Reports

30. Monthly Appropriation Transfer Report: March 2010.

31. Report from the Planning Board in response to a request by John Jordan to rezone 51 Tanner Street, Penacook, from Urban Commercial to Central Business Performance. (7-8)

32. Diminimus gifts and donations report from the Human Services Director requesting authorization to accept monetary gifts totaling $50 as provided for under the preauthorization granted by City Council.

33. Diminimus gifts and donations report from the Human Services Director requesting authorization to accept monetary gifts totaling $1,000 as provided for under the preauthorization granted by City Council.

34. Diminimus gifts and donations report from the Library Director requesting authorization to accept monetary gifts totaling $2,915 as provided for under the preauthorization granted by City Council.

35. Reports from the Rules Committee and the Legal Department in response to a communication from Anthony Schinella proposing a change to the City of Concord’s Municipal Charter. (12-9)

36. Report from the Public Safety Board in response to a communication from Councilor Keach requesting the Public Safety Board explore the possible formation of a Police Civilian Review Board. (4Sus2) (5-21)

37. Report from the Public Safety Board in response to a report from the Fire Chief regarding cost and performance issues with a municipally operated ambulance system. (5-29)

38. Report from the Public Safety Advisory Board in response to a report from the Assessing Department requesting that the City of Concord release building sketch information and allow access to assessing data by owner name on the on-line assessment information web-site. (1-26)

39. Finance Committee budget schedule and adoption date report from the Deputy City Manager – Finance. (Revised budget schedule submitted)

40. Report from the Deputy City Manager – Finance on the Concord Auditorium Contract Extension and User Fees.

41. Report from General Services in response to a communication from Mary Gile inquiring as to what the City of Concord is doing to protect residents, particularly children, from potentially harmful chemicals at city parks and fields. (3-7) (Pulled from the consent agenda by Councilor Blanchard)

Action: This item was removed for discussion at the end of the agenda.

42. Report from General Services and Recreation in response to a communication from the Concord High School Softball Booster Club pledging dollars towards the replacement of the softball dugouts at Memorial Field. (3-10)

43. Report from the Planning Board on tax title property on Basin Street.

44. Nominations to the Central NH Regional Planning Commission from the Planning Board.

45. Report from the Recreation Department regarding fundraising for July 4^th festivities. (Pulled from the consent agenda by Councilor Patten)

Action: This item was removed for discussion at the end of the agenda.

46. Report from Engineering Services with a post-construction assessment of traffic operations and safety regarding improvements made at the Mountain Road/Shaker Road/Cemetery Street intersection in 2007.

47. Report from the Traffic Operations Committee in response to a request from a resident of Liberty Street to consider installation of a painted crosswalk on Pleasant Street between the intersections of Fruit Street and Rumford Street.

48. Report from the City Manager; together with communication from the Friends Program requesting authorizing to install temporary ceremonial street signage within the City.

Consent Resolutions

49. Resolution authorizing the City Manager enter into a license agreement with Concord Power and Steam for installation of pump house and associated improvements at the City’s Hall Street Waste Water Treatment Plant for the purpose of withdrawing water from the Merrimack River; together with report from the Assistant for Special Projects.

50. Resolution authorizing the City Manager enter into a license agreement with Concord Power and Steam for installation of a private water supply line within the City’s Hall Street right-of-way for the purpose of transmitting water from the Merrimack River to a new electric and steam generation plant; together with report from the Assistant for Special Projects.

Consent Communications

Appointments

From the Mayor

**End of Consent Agenda**

51. April 12, 2010 Public Hearings

A. Ordinance amending the Code of Ordinances, Title I, General Code; Chapter 1, Government Organization, by amending Schedule I and II of Article 1-5, Fees, Fines and Penalties; together with report from the Deputy City Manager – Finance. (3-11)

Action: City Manager Tom Aspell provided a brief overview explaining that this years revisions are largely inflationary and market based noting that the departments were asked to limit increases to 2 ½ percent unless they were to go out and do a full scale marketing cost analysis.

Mayor Bouley opened the public hearings for items A and B. There being no public testimony, the Mayor closed the hearings.

B. Non-ordinance fees. (3-12)

Action: Public hearing for this item taken with public hearing A.

C. Resolution appropriating the sum of $1,586,000 and authorizing the issuance of bonds and notes for Route 3 Corridor (North) Improvements, CIP #35; together with a report from the City Engineer. (3-13) (Revised resolution together with report from the City Treasurer submitted)

Action: City Manager Tom Aspell provided a brief overview explaining that the next phase for the Fisherville Road/North State Street corridor project is coming up and this phase’s costs for the bonds was projected to be $1,586,000 and due to a savings of a $490,000 bond no longer needed for the Hutchins Street project, they were able to reduce this request from $1,586,000 to $1,096,000.

Mayor Bouley declared the hearing open. There being no public testimony, the Mayor closed the hearing.

D. Resolution approving a Steam Cost Performance Agreement with Concord Power and Steam, LLC for a guaranteed steam cost payment; together with a report from the Deputy City Manager—Development. (3-14) (Revised resolution; together with revised steam cost performance agreement and addendum report from the Deputy City Manager – Development submitted)

Action: There being no objection, the City Clerk read the titles for both items D and E.

Carlos Baia, Deputy City Manager – Development, provided a detailed overview explaining that at the March Council meeting the Mayor had indicated the desire to have the agreement vetted by an independent third party reviewer that has expertise in energy and energy commodities. He noted that subsequent to that meeting the city retained the services Beacon Integrated Solutions as well as the Madison Energy Group pointing out that the hiring of this consultant was undertaken without any cost to the taxpayers and that the costs were assumed by Concord Steam Corporation. He indicated that in 2007 Concord Steam Corporation, Peter Bloomfield and Mark Saltsman, President and Vice President, announced plans for a renewable energy facility to generate electricity and steam here in the City of Concord and came to the conclusion for that plan because they were in a facility at the State Hospital campus which was significantly aged, was not efficient and were approaching an expiration with their lease with the state. He indicated that they were seeking to build a facility that would provide much greater efficiency and provide lower steam rates in terms of heating for the winter season. He noted that they had purchased the 36 acre site in the south end of Concord commonly referred to as the South End Marsh right off Langdon Avenue, they sought land use approvals from the Planning Board and also from the Zoning Board that same year and were successful in both forums. Mr. Baia explained that in 2008, Mr. Saltsman and Mr. Bloomfield formed Concord Power and Steam LLC, the corporate entity that will actually operate the renewable generation facility and at that same time they came forward to the city indicating a need to have a payment in lieu of taxes established with the City of Concord. He noted that the reason for this request is primarily based upon the fact that they said that the realty is based on the assessed value that they anticipated for their plant, their construction they estimated would be in excess of $70 million that the ad valorem taxation would be so high in their estimation that it would prohibit the actual building of the plant and operation of the plant. He indicated that the state RSA’s actually provide an opportunity for a renewable energy facility to actually request a PILOT, it’s implicit that it is an incentive based program basically encouraging renewable energy making the state more energy independent. Mr. Baia explained that the city, when it was first approached, had some hesitation because the challenges for PILOTS is that it requires a significant amount of upfront research, negotiation and follow up which was expressed to the representatives from Concord Power and Steam. Nonetheless RSA 72 did stipulate that if the city has an existing payment in lieu of taxes for a renewable energy facility that the city is obligated to offer a comparable agreement. He pointed out that the city does have a PILOT with such an entity, Briar Hydro in Penacook, which was established for a five year term done in exchange for some concessions in terms of easements for the development of the tannery site. He noted that based upon this foundation, staff started to negotiate with Concord Power and Steam, starting off with a comparable agreement looking at the same formula used with Briar Hydro which was five percent of gross revenues for a payment, also to ensure that if the revenues decline in any given year that the city’s interests would be protected. He explained that the formula that they arrived at with Concord Power and Steam was five percent of gross revenue minus fuel costs and came up with a figure based on their pro forma of $546,000 after its first full year of operation. He noted that the third party review in analyzing the updated numbers realized that that number had actually increased and should be $564,000 so this item was amended in the report and resolution and was agreed to by Concord Power and Steam. He explained that another concern that staff had was that they wanted to make sure that there was an increase so they created a scenario that the PILOT payments would continue to increase based on an implicit price deflator, a cost of living adjustment. The reason staff used the implicit price deflator for this agreement is because it ties in to the other contracts that Concord Power and Steam has in terms of their energy side. He explained that the PILOT, the way it is structured, is that roughly 60 percent is the school and the city is roughly 40 percent; based upon the $564,000 you are looking at a payment of $338,400 for the Concord school district and $225,600 for the city. He pointed out that another element they had to account for besides the operating years were the construction years, what is going to be done during the roughly two years that it would take them to build the plant explaining that the formula that they ended up arriving at was one based on a combination of taking some construction value as well as taking some of the assessed land value. He gave an example of this formula contained within the report. He noted that once the construction period had ended, one of the other cautions that staff was very cognizant of was what happens if they have inflation and one of the things that they wanted to ensure was that by the time they got to the first full year operation the city wasn’t already behind. He explained that they added a clause that stated that the first full year will be the $564,000 but will also include the cumulative increase in the implicit price deflator for the two years of construction. Mr. Baia pointed out that another core component of the agreement are the notions of extensions and explained that the RSA currently stipulates that PILOT agreements are for five year terms and they do make an exception in cases where a plant needs to finance some operation of the construction, etc. Concord Power and Steam, because they haven’t built a plant, are looking for a significant amount of financing and they requested a term in essence to be approximately 17 years. He noted that this was something that was critical for the city to have reviewed by a third party consultant to ensure in fact that this was something that was an industry standard. The Beacon Group came back and clarified that in fact this was common place in the energy industry and that financing terms between 10 and 25 years are very much the norm. He added that they also reviewed all the other terms and found them to be in accordance with normal practices for this type of a project. He pointed out that another concern that they had with the extensions were the fact that they had drafted an initial agreement to be five years, the first two years of construction plus five and then two subsequent five year terms. Concord Power and Steam had indicated that they really wanted the extensions to be automatic so that there wouldn’t be any bumps in the road that would create a problem for them and basically take all their financial analysis out of adjustment. He noted that the third party reviewer stated that there is a better way to do this, the better way would be to create what they dubbed a look back period which is after the first term, the city would have the right to go back in, look at the average gross revenues over the five years and look at the average fuel costs for the five years and determine, if in fact, the city was getting a good deal. If it was found that the city should be owed more money based on those figures, the city would have that option and it would be built into the agreement, however, if the city found the opposite the city would still be protected because they would never go back, it would always be the previous years payment or higher. He noted that the plant itself is only on 14 acres out of 36 acre parcel and the remaining acreage is still going to be assessed under ad valorem taxation and those dollars will still be going to the various taxing authorities and will be in perpetuity. He added that Mr. Bloomfield and Mr. Saltsman are open to future development plans which would add more tax revenue and jobs to that part of town. Mr. Baia explained that another factor in this agreement that is ancillary to it is building permit revenue noting that this plant, if it’s estimated to be $72 million in construction would generate approximately $500,000 in building permit revenue. He pointed out another important consideration to the administration will be efficiency. He indicated that Concord Power and Steam applied to the State DES to have an exemption for an air pollution control device, they were granted an exemption of approximately $18 million bringing their value down for assessment purposes from $72 million to $54 million. He noted to take today’s tax rate of $21.67 and apply it to $54 million, there would be a total tax payment of $1,170,180 that they would be theoretically responsible for and of this tax payment, the city’s portion would be roughly $404,000. He added that another element is the steam cost performance agreement explaining that throughout the public meeting process that Concord Power and Steam held when they were going through their site plan review one of the things that they mentioned was the efficiencies, the lower cost to the Concord business people and property owners. He indicated that the city asked them to put it in writing, guarantee that there will be a reduction in cost and they came to an agreement where there would be a guarantee that the price will in fact be reduced to the City of Concord, a 20 percent reduction is proposed in the steam performance agreement that is under review this evening, 20 percent reduction between the last year at the old plant and the first year at the new plant. Should the city not see a 20 percent reduction, Concord Power and Steam will pay the City of Concord the difference, this on top of whatever PILOT payment they are already making. He explained that this is in perpetuity with this agreement so if Council approves the PILOT this evening and any extensions, this agreement would also be approved and the base year amount will always be adjusted so the city always has the guarantee that there will always be a 20 percent reduction.

Councilor McClure inquired whether the 20 percent reduction is based on using the same amount of energy or if using less energy would it be on whatever the rate of use is. Mr. Baia responded that it is based on the tariff rates so whatever the rate is, regardless of the usage, the 20 percent is guaranteed off of the rate. He added that if they don’t see a reduction in the base rate then this is where the clause would trigger and obligate Concord Power and Steam to pay the city the difference. Councilor McClure noted that it was indicated that many of the buildings in the city use Concord Steam but as she understands it the city is in the process of converting many of its buildings to natural gas because it is less expensive and more efficient. She asked whether some of the businesses downtown are also considering converting to natural gas. Mr. Baia responded that he doesn’t doubt that they have considered it but is not familiar with how many are doing it or not. He indicated that there is a price associated with this and it is not a hidden fact that the steam rates have been high relative to the natural gas rate. He noted that he thinks this is one of the reasons why they are trying to build this facility to allow them to bring it down to become more competitive in the market place. City Manager Aspell added that the city has considered taking all of its buildings off of steam but has decided to wait to see whether or not this project will be successful or not.

Councilor Blanchard noted that it was indicated that Briar Hydro had a five year contract and pointed out that that was an extension on their previous contract. Mr. Baia explained that he was referring to the agreement that is in place today, the five year agreement.

Mayor Bouley declared the hearings open for items D and E.

Public Testimony

Michael Tucker asked that Council support Concord Steam indicating that they have been helping the community over the years and will continue to help as they grow as a company.

Peter Bloomfield, Concord Steam President, Mark Saltsman, Concord Steam Vice President, Richard Uchida, Attorney representing Concord Steam. Mr. Bloomfield indicated that there is a need for improving efficiency and getting more cost effective in this operation and this is really what their drive was in terms of building this new plant. He noted that this has been a challenge for over three years. He indicated that everyone likes to think that renewable energy is a good thing but the bottom line is that it ends up costing more than burning natural gas or coal and trying to find a utility that will sign a 20 year contract with them for the sale of electricity that is financeable has been an adventure. Referencing reducing the steam cost to the city, he added that it is not to the city but to all the other buildings downtown and that they are looking at being able to reduce their steam costs for a savings of roughly $1.5 million to all the building owners and residents who are presently on their steam system. The issue of why they are asking for something different from what the law reads in terms of standard assessment comes back to that since they generate electricity and sell electricity, they are put into the same pot as a regulated electric utility is which is based on what their system is valued at as an ongoing business as opposed to a normal real estate evaluation which is simply what the cost of the property is and what the cost of the buildings themselves are. He explained that their valuation, because they sell electricity, includes the value of all the equipment and the value of the contracts. Mr. Bloomfield noted that they want to be able to make this plant happen bringing significant advantages to the city including reduced costs for energy, there is well over 100 jobs associated with the plant with 20 new full time jobs, over 100 jobs generated because of where they are getting their fuel now is in the immediate environment around Concord, spending over $7 million a year buying wood fuel from the immediate neighborhood.

In respect to the agreement, Mr. Uchida stated that one of the critical parts of the agreement that city staff negotiated for at the recommendation of their experts was that they continue to use renewable energy sources as their primary fuel which is the whole basis for this agreement to begin with and has been built into the agreement. He noted that in addition to the property which will be able to be developed next to this plant, the remaining portion of the south end marsh that is on the property has been put into conservation as part of the Planning Board approval. He added that, when negotiating with city staff, they looked at other possible best uses on that property. Referencing other revenue that will flow into the city, he noted that there will be approximately $3 million in new piping infrastructure which will be taxable; rent paid on the Hall Street site in which they will be drawing water out of the river for the steam plant; impact fees; connection fees. He pointed out that where possible when the city or its experts have asked for them to change this agreement to provide additional protection to the city, even though in instances its represented more dollars out of their pockets than they had expected, they tried their best to accommodate those changes and can safely say in just about every instance, they agreed to those changes because they thought that this was the right thing to do.

Councilor Shurtleff asked if it would be their intent to preserve some of the old Boston and Maine Railroad buildings on the property. Mr. Bloomfield responded that if they can explaining that there are two remaining buildings that are still in recoverable condition and that they have spoken to people who have investigated what it may cost to rehabilitate them. He indicated that as part of the process of the steam plant project they don’t need to do anything with them in fact they are going to be using them as storage for their parts. Councilor Shurtleff stated that they are an important part of Concord’s history.

Councilor Blanchard indicated that the previous speaker had sent around some information in regards to Concord Power and Steam’s charitable donations, one being the sidewalk snow melt system on Theatre Street. She noted that Main Street Concord envisions a future of Main Street that would include a heated sidewalk and questioned whether Concord Power and Steam foresees this as a feasible thing that may happen. Mr. Saltsman responded that yes they do and that they have spoken to the Engineering Department as far as preliminary numbers.

Councilor McClure indicated that as she understands it Concord Power and Steam is guaranteeing the city 20 percent reduction in their tariff rates and inquired what they anticipate or what have they guaranteed to other customers. Mr. Bloomfield responded that other customers are not in the position that the city is and they have not guaranteed reductions to any of the customers but their projections are that they expect their steam rates to drop between 30 and 40 percent so they expect a significant reduction in the ultimate cost to their steam to all of their customers.

Referencing the 30 to 40 percent, Councilor Keach asked whether this would then make steam a more competitive product relative to natural gas and oil. Mr. Bloomfield responded that to be correct.

Roy Schweiker, Concord resident, referenced the history of the of the Briar Hydro PILOT agreement. He noted that overall he feels that this is a good proposal and likes the idea of supporting renewable energy. He indicated that there are only two things that he does not understand: how come the city isn’t getting the five percent on the fuel cost as well; the land is worth twice what the city assessment is and he would like to see the city capture the full value.

Mike Faye indicated that he works in the bio mass industry and is a promoter of renewable energy. He noted the fact that it wasn’t mentioned that this is a co-generation plant, combined heat and power that uses the waste heat as another resource of energy versus coal fired plants. He indicated that being able to use the heat to heat buildings after that initial burn and using the sustainable wood to power the plant is really what needs to be done. He implored Council to move toward the sustainability aspect of this, it’s the future and is where the city needs to go and if they need a little help to get them started, he feels that the sky is the limit. He stated that he feels that there is a big opportunity to do even more.

Tim Golde, Concord resident, asked that Council do anything they can to help aid this project to the tax base to help with the budget and the tax burden of the city. He noted that renewable energy does cost more but it’s the right thing to do, is what we have to do and he would like to see Concord be in the forefront. He implored Council to make this happen because it is the right thing to do.

Andrew Benson, Concord resident, pointed out that there is a scale problem explaining the Concord Power and Steam is going to go up against massive multi-national natural gas or coal corporations and their cost structure is significantly easier to deal with compared to Concord Steam because they are a small scale company so if some of the regulations and fees can be reduced, he feels that there would be a more fair playing field in terms of competing with the natural gas and coal companies.

Tim Sink, Greater Concord Chamber of Commerce President, spoke in support of the proposed resolution. He noted that he had the opportunity to review the staff report and though he can appreciate the PILOTS, they can create certain policy challenges and it really appears that the benefits for approving this outweigh any of the negatives. He made four points: the PILOT appears to be able to generate more property tax revenue than alternative developments on this site; the benefit to downtown in the form of reduced energy costs will make it more of a competitive business destination; if for any reason Concord Steam could not operate or cease to operate he would be concerned with the cost to create conversions for existing businesses; this will be much less of an impact on the neighborhood than when the Richmond project was being considered years ago.

Ira Pfeiffer, Concord resident, noted that a topic that hasn’t been brought up is if Concord Steam fails to get the tax reduction, there are 200+ buildings in the city that will have their own boilers and with those boilers there are no regulations on the emissions coming out whereas Concord Steam has strict restrictions. He added that he feels that this tax break would help the city build a better environment for future families.

Mark Cibrowski, Concord resident, spoke in favor of the proposed resolution. He indicated that he feels that this is a win-win and is going to produce more than twice as much tax revenue than any other comparable retail office project in that location.

Michael Trefethen spoke in favor of this proposal because it will generate more tax revenue and will provide local jobs.

There being no further public testimony, the Mayor closed the hearings.

E. Resolution approving and agreement for the payments in lieu of taxes (PILOT) for Concord Power and Steam, LLC, for the construction and operation of a renewable generation facility producing electricity and steam; together with a report from the Deputy City Manager--Development. (3-15) (Revised resolution; together with revised agreement for payments in lieu of taxes and addendum report from the Deputy City Manager – Development submitted)

Action: The public hearing for this item was taken with item D.

F. Resolution authorizing the expenditure of $350,000 and authorizing the issuance of $350,000 in bonds and notes for raw water metering and process improvements at the Hutchins Street Water Treatment Plant, CIP #88; together with report from the General Services Department. (3-16)

Action: Mayor Bouley opened the public hearing. There being no public testimony, the Mayor closed the hearing.

G. Resolution authorizing the expenditure of $75,000 and authorizing the issuance of bonds and notes for the refurbishment of the chemical feed equipment at pump station #2, the Pembroke Well Field, CIP #345; together with report from the General Services Department. (3-17)

Action: Mayor Bouley opened the public hearing. There being no public testimony, the Mayor closed the hearing.

April 12, 2010 Public Hearing Action

52. Ordinance amending the Code of Ordinances, Title I, General Code; Chapter 1, Government Organization, by amending Schedule I and II of Article 1-5, Fees, Fines and Penalties; together with report from the Deputy City Manager – Finance. (3-11)

Action: Councilor Bouchard moved approval. The motion was duly seconded and passed with no dissenting votes.

53. Non-ordinance fees. (3-12)

Action: Councilor Nyhan moved approval. The motion was duly seconded and passed with no dissenting votes.

54. Resolution appropriating the sum of $1,586,000 and authorizing the issuance of bonds and notes for Route 3 Corridor (North) Improvements, CIP #35; together with a report from the City Engineer. (3-13) (Revision resolution together with report from the City Treasurer submitted)

Action: Councilor Blanchard moved approval. The motion was duly seconded. Councilor Stetson moved to substitute the revised resolution. The motion was duly seconded and passed with no dissenting votes.

Councilor Blanchard’s motion, as amended, passed 15 to 0 on a roll call vote with Councilors Bennett, Blanchard, Bouchard, Mayor Bouley, Councilors Coen, DelloIacono, Grady, Keach, McClure, Nyhan, Patten, St. Hilaire, Shurtleff, Stetson and Werner voting yes.

55. Resolution approving a Steam Cost Performance Agreement with Concord Power and Steam, LLC for a guaranteed steam cost payment; together with a report from the Deputy City Manager—Development. (3-14) (Revised resolution; together with revised steam cost performance agreement and addendum report from the Deputy City Manager – Development submitted)

Action: Councilor Bennett moved approval. The motion was duly seconded. Councilor Stetson moved to substitute the revised resolution and agreement. The motion was duly seconded and passed with no dissenting votes.

Councilor Bennett’s motion, as amended, was approved with no dissenting votes.

56. Resolution approving and agreement for the payments in lieu of taxes (PILOT) for Concord Power and Steam, LLC, for the construction and operation of a renewable generation facility producing electricity and steam; together with a report from the Deputy City Manager--Development. (3-15) (Revised resolution; together with revised agreement for payments in lieu of taxes and addendum report from the Deputy City Manager – Development submitted)

Action: Councilor Bennett moved approval. The motion was duly seconded.

Councilor Blanchard indicated that it had been mentioned that the school district and city will be dividing 60/40 and inquired whether the county would be receiving anything. Mr. Baia responded that the state RSA stipulates that when a municipality enters into the PILOT agreement there is a provision for the school district in which the utility is locating to also receive a proportionate payment relative to proportion of the tax bill, which is where the 60/40 was received at. He noted that there is no provision in the RSA for any other taxing authority.

Councilor Stetson moved to substitute the revised resolution and agreement. The motion was duly seconded and passed with no dissenting votes.

Councilor Keach thanked the Mayor for proposing the extra step of hiring the consultant noting that it added an extra layer of transparency and answered a lot of questions in what is a fairly complex issue.

Councilor Blanchard thanked Carlos Baia for a very comprehensive report and presentation on this item.

Councilor St. Hilaire thanked Concord Steam for paying for the consultant even though Council was the ones who requested it.

Councilor Patten thanked Peter Bloomfield for appearing on his cable program and for answering the questions that he had.

The motion, as amended, passed with no dissenting votes.

57. Resolution authorizing the expenditure of $350,000 and authorizing the issuance of $350,000 in bonds and notes for raw water metering and process improvements at the Hutchins Street Water Treatment Plant, CIP #88; together with report from the General Services Department. (3-16)

Action: Councilor Nyhan moved approval. The motion was duly seconded and passed 15 to 0 on a roll call vote with Councilors Bennett, Blanchard, Bouchard, Mayor Bouley, Councilors Coen, DelloIacono, Grady, Keach, McClure, Nyhan, Patten, St. Hilaire, Shurtleff, Stetson and Werner voting yes.

58. Resolution authorizing the expenditure of $75,000 and authorizing the issuance of bonds and notes for the refurbishment of the chemical feed equipment at pump station #2, the Pembroke Well Field, CIP #345; together with report from the General Services Department. (3-17)

Appointments by the Mayor

Reports

59. Sanel Block Development Agreement Modification report from the Assistant for Special Projects – Sanel project.

Action: Matt Walsh, Assistant for Special Projects, provided an overview explaining that there have been some wrinkles in the financing that Mr. Duprey is pursuing for the project known as New Markets Tax Credits. He indicated that originally Mr. Duprey was going to retain a portion and still will retain a portion of that financing as a working reserve to pay operating expenses that his project will accrue after the construction is done. He explained that the wrinkle is that, under federal rules associated with that program, he can only retain a certain amount of dollars for an operating reserve and as such there is a need to come back to the Council and get their consent on some minor modifications toward the development agreement so they can move forward with the closing. He added that it is his understanding that a closing is planned approximately three weeks from now. He outlined the changes as follows: under the agreement the city was originally supposed to sell the Theatre Street parking lot for the sum determined by an independent party real estate appraiser of $200,000 but because of semantics, Mr. Duprey would like to pay $400,000 for that piece of property because of regulations associated with the New Markets Tax Credit program. Tied into this, Mr. Duprey is supposed to be leasing somewhere between 80 and 150 parking spaces in the Capital Commons parking garage at rates that were established and the New Markets Tax Credit period is for seven years and Mr. Duprey has proposed repaying that lease which would start a year from now on April 11^th and would like to pay the first six years of this lease agreement to the city by the end of the month. He noted that Mr. Duprey would like to take the $200,000 extra that he is paying for the lot and credit it against that lease payment. Mr. Walsh also indicated that he also asked for permission to take a portion of the parking space leases that he will have in the Capital Commons garage and instead of doing master lease agreement with the city for all of them, have the ability to have Concord Hospital have a separate lease agreement with the city but under the same terms and conditions that he has negotiated with the city previously. He explained that what that does is removes additional operating expense from his project which helps him get his operating reserve down underneath the limitations of the New Markets Tax Credit program. He explained that, under this proposed agreement, the city will get all the money it was supposed to get per the terms and conditions of the original agreement that was approved by Council in September 2009 and the only difference is that what the city is getting is being expedited. Mr. Walsh pointed out a typo on page three of his report where it estimated that it was $405,000 which is erroneous and should be $605,000. He noted that if Council was amenable to these changes, they would authorize the City Manager to enter into a side agreement to clarify these points of the development agreement with Mr. Duprey and within the next four weeks or so there will be about $605,000 flowing to the city.

Councilor Coen noted that last month the Ad-Hoc Parking Committee report indicated that proceeds from the Theatre Street parking would go into the parking fund to help offset the deficit. He asked whether that $400,000 would go into the parking fund. Mr. Walsh responded that it is the entire sales proceeds from the sale of the Theatre Street lot plus the net of the first six years of the parking space leases for the Capital Commons garage.

Jim Howard, Deputy City Manager – Finance, clarified that the prepayment of these lease charges to the developer will be deferred income until a period in time in which they are earned. He indicated that it is not revenue until it is actually earned and it is not earned until the period of time arises that that payment would be due.

Councilor St. Hilaire asked whether that excess that is not earned in a budgetary year is held in a trust. Mr. Howard responded that it is held in the parking fund on the balance sheet account under unearned revenue. Councilor St. Hilaire questioned whether it would earn income during that time period off the interest of what is not paid until the next year. Mr. Howard responded that interest will be earned on all the cash in the parking fund.

Councilor Keach inquired whether it would be legally allowed under accounting practices to count this as income in that first year. Mr. Howard responded that it probably would be legal but it wouldn’t be appropriate adding that it’s not necessary either.

Councilor Nyhan moved approval of the report. The motion was duly seconded and passed with no dissenting votes.

60. Concord Area Transit (CAT) Transit Service Plan. (For presentation in May)

Action: For presentation at the May City Council meeting.

New Business

Unfinished Business

61. Report from the Deputy City Manager - Community Development in response to a communication from Holly Carlson on behalf of Manchester Street businesses requesting City Council consider a zoning change to the existing sign ordinance. (4-10) (9-48) (10-39) (11-38) (12-40) (1-53) (2-47) (3-48) (Report tabled at the September 14, 2009 City Council meeting) (Additional report from the Deputy City Manager – Development submitted)

Action: This item remains on the table.

Comments, Requests by Mayor, City Councilors

Councilor Grady announced that community forums have been scheduled for Friday, April 16^th at 7:00 p.m. and Saturday, April 17^th at 10:00 a.m. in City Council Chambers. She noted that during these forums, staff hopes to receive public input regarding types of programs residents would like the city to offer, guidance as to whether the city should focus resources on trying to preserve and renovate the four existing facilities or whether the city should explore closure and consolidation of any or all of the current neighborhood facilities in order to build one or more citywide centers.

Councilor Bouchard announced that the Greater Concord Safe Communities Coalition is having a thank you appreciation breakfast for the city’s school bus drivers and crossing guards on Thursday, April 22^nd at 8:00 a.m. at the garage in which the buses are stored off of North Main Street. She noted that Councilors are invited to attend the breakfast to say thank you to the drivers and guards who protect the children on their way to and from school.

Councilor Keach expressed his condolences in the passing of a teacher at the Broken Ground School, Sue Ann Martin, who was a highly respected teacher who touched the lives of many young people in the community.

Councilor McClure thanked everyone who assisted, participated and attended the library forum last month. She indicated that over 150 people attended and even more that filled out surveys. She noted that they will be preparing a report for the May meeting because they are taking a number of comments that they received and doing some additional research and investigation into some of the issues and concerns that were brought up.

Referencing the budget, Mayor Bouley indicated that the city had received some disappointing news this past week as the state struggles with their financial difficulties, they are trying to make some difficult choices and as one of the proposed suggestions, there would be a change in the rooms and meals tax as well as cost to the retirement contribution that the city makes. He noted that as it is currently proposed it would be a loss to the city of approximately over $300,000. He noted that they will be watching this and monitoring this closely.

Comments, Requests by the City Manager

City Manager Aspell introduced Brian Lebrun, the new Deputy City Manager – Finance.

Consideration of items pulled from the consent agenda for discussion

Items 41 and 45 were pulled from the consent agenda to be discussed following unfinished business items on the agenda.

Action: Councilor Blanchard indicated that she too had seen the same movie in which Representative Gile had referred to in her communication and noted her concern that the city is still using pesticides on the fields and parks noting that there are products out there are not hazardous. She has observed some companies that place signs on lawns indicating that children and pets should not be on the lawn. She noted that the staff report only indicates that they fall within the jurisdiction of the Environmental Protection Agency which doesn’t necessarily mean that they are safe. She indicated that she would like to propose a policy to try to discontinue the use of pesticides on the city’s parks, fields and golf courses.

Councilor McClure indicated that Representative Giles would like to receive more information from General Services. Councilor McClure moved to refer this back to General Services asking them for a list of the pesticides that are used and whether 2,4-D is contained within any of the pesticides that the city applies to its fields. The motion was duly seconded.

Councilor Keach asked whether Councilor McClure would propose an ordinance or a policy that is more restrictive than federal law if this chemical is contained within the pesticides. Councilor McClure responded that the request is just informational at this point.

Councilor Werner wondered if staff could provide possible examination of alternative products that would accomplish the same end of controlling growth and weeds to ensure that the city providing safe products for use.

Councilor McClure noted that she supported Councilor Werner’s suggestion as part of an amendment to her motion.

City Manager Tom Aspell noted that as he understands, Council is requesting a list of the pesticides used by the city and any alternatives to those pesticides that may be considered safe. Councilor Werner responded yes adding that he would also like an examination of effectiveness and cost. Councilor McClure added that she would like to find out whether 2,4-D is in any of the pesticides that the city currently applies

Councilor St. Hilaire indicated that he feels that it is a good idea for the city to place flagging for 24 hours upon application of pesticides and whether the city currently does this as a warning and secondly, a cost benefit analysis assuming that the pesticides actually kill insects and bugs; it kills something more harmful than the chemicals being used.

Councilor Blanchard explained that there have been studies done that show that residences with beautiful lawns have a higher rate of cancer.

Mayor Bouley inquired whether pesticides are actually regulated by the state and not by local communities. He asked what the city can do as to good policy and practice versus what the city can and can’t do in terms of prohibiting. General Services Director Chip Chesley responded that there are two issues and that the first one that is hit upon is a legal issue. Referencing the movie, he explained that much of the movie talks about a principle that is in the Canadian Law and European Union Law that may not be held up in this country’s laws and would defer to legal entities to debate this. Mr. Chesley explained that the environmental policy in this country is that materials that are put in the environment is a health benefit risk assessment and an example of this is the drinking water being disinfected. He indicated that in developing these regulations, EPA does risk assessments because there are long term effects from chlorine. He added that the precautionary principle looks at regulatory matters in a different approach it says that if you are going to intercede in any fashion you have to look at what the impacts are of whatever that element is to intercede and look at those effects and may not necessarily look at the consequences of not putting that element into the environment. He used the mosquito spraying as an example. Mr. Chesley added that the materials currently used are regulated by the federal government, EPA and DES.

Councilor Blanchard indicated that what is being discussed this evening is only within the city and what the city can do its own properties and have not gotten to the point of even suggesting that the city outlaw or prohibit pesticides for everybody else.

Mayor Bouley explained that if Council is going to refer this back to General Services, he felt that it was worthwhile to prevent a third referral back and that is why he brought that matter up.

Mayor Bouley clarified the motion that this item is being referred back to General Services to look at what are the current city policies; what are the current pesticides used by the city; whether they contain 2,4-D; look at alternatives to the current use of the city’s pesticides; look at cost benefit analysis; look at the flagging issue that occurs.

Mr. Aspell questioned whether this was being just looked at for city parks, athletic fields and the golf course. The Council consensus was yes. Mr. Aspell pointed out that there is a lot of other city properties in which pesticides can be applied and noted that this is going to be a very comprehensive study and is going to take some time.

Councilor McClure noted that they are talking specifically about areas in the city that the city maintains, where children play and people are on the grass. It was confirmed that it would include parks, athletic fields and the golf course.

Mayor Bouley asked whether Council would be willing to consider what the legal issues are.

Councilor McClure noted that at the moment they are just talking about whether 2,4-D is one of the chemicals contained within the pesticides being used with the next question being whether the city wants to choose another alternative to protect the people in the parks or fields.

Councilor Bouchard asked whether the study would stop if the chemical is not contained within the pesticides being used.

Councilor McClure indicated that it is her understanding that 2,4-D is the one that is the concern.

Councilor Nyhan suggested that the city may just want to do the analysis because there may be other chemicals of concern. He noted that if staff is going to look at what is being put down, they should look at other chemicals as well explaining that he would hate to have to refer this item again next month and this is the opportunity to task resources once instead of twice.

Mr. Aspell noted that staff will bring back all the information to Council. He explained that the city employees are licensed to apply these products by the state but are unable to tell whether one chemical versus another is appropriate.

Referencing the golf course, Councilor St. Hilaire noted that Council may want to reconsider placing this in the mix because there are not usually children or pets on the grounds and the standard of how the grass is to look there is a lot different than the standard for a park.

Councilor Keach indicated that he is not entirely comfortable at all forming any city policy based on a movie. He noted that it deserves some inquiry but just an inquiry.

Councilor McClure indicated that she would like to know what is placed on the golf course.

City Manager Aspell asked whether the analysis would stop if it is determined that 2,4-D is not used in the pesticides.

Mayor Bouley noted that he is afraid that if the entire analysis within the motion is not completed, that this issue will be referred once again. It was agreed upon that the information contained within the motion would be done in the analysis back to Council.

There being no further Council discussion, the motion to refer back to General Service to look at current city policies; what are the current pesticides used by the city; whether they contain 2,4-D; look at alternatives to the current use of the city’s pesticides; look at cost benefit analysis; look at the flagging issue that occurs within city parks, athletic field and the golf course passed 10 to 5 on a show of hands vote.

45. Report from the Recreation Department regarding fundraising for July 4^th festivities. (Pulled from the consent agenda by Councilor Patten)

Action: Councilor Patten moved to table this report for another month explaining that he would like to try to get the donations needed for this year’s event.

Recreation Director David Gill explained that the total cost for the July 4^th fireworks is $10,000, $3,000 in expenses for police coverage, and $1,000 for General Services. He indicated that he is meeting tomorrow with the fireworks company and a local radio station to try to work the same deal as last year to get a reduction. He estimated that the city would need $9,000 to $10,000 in donations. He pointed out that they have currently received $2,400 in donations to date.

Councilor Nyhan inquired whether there is any opportunity to cut the show duration in half to save some money. Mr. Gill responded that the July 4^th minimum for all the fireworks is a $10,000 show.

The motion to table was duly seconded and passed with no dissenting votes.

Consideration of Suspense Items

Councilor St. Hilaire moved to consider the suspense items not previously advertised. The motion was duly seconded and passed with no dissenting votes.

4 Sus1 To be set for a May 10, 2010 Public Hearing
Ordinance amending the Code of Ordinances, Title V, Administrative Code; Chapter 30 Boards and Commissions; together with report from the City Clerks Office.

Action: Councilor Shurtleff moved to set this item for a May 10, 2010 public hearing. The motion was duly seconded and passed with no dissenting votes.

4 Sus2 To be set for a May 10, 2010 Public Hearing
Resolution amending the Energy and Environment Advisory Committee; together with report from Councilor Werner.

Action: Councilor Werner moved to set this item for a May 10, 2010 public hearing. The motion was duly seconded and passed with no dissenting votes.

Adjournment

The time being 9:20 p.m., Councilor Nyhan moved to enter into non-public session to discuss contract negotiations in accordance with RSA 91-A: 3, II (d). The motion was duly seconded and passed 15 to 0 on a roll call vote with Councilors Nyhan, Patten, St. Hilaire, Shurtleff, Stetson, Werner, Bennett, Bouchard, Mayor Bouley, Councilors Coen, DelloIacono, Grady, Keach, McClure and Blanchard voting yes.

A true copy; I attest:

Michelle Tiffany
Deputy City Clerk