City Council - Regular Meeting

Thank you. you Thank you. Thank you. Thank you. Thank you. Thank you. you Thank you.

can you turn on your microphone please yeah good evening the hour of 7 p.m. having arrived I will call to order this regular meeting of the Keene City Council this meeting is being broadcast live on the city of Keene YouTube channel and spectrum channel 1302 The video is also streamed on the City's website and is posted by the end of the next business day, barring any technical difficulties. If you would like to receive an electronic City Council packet to reference while viewing future broadcasts, please contact the City Clerk's office during business hours or go to the City's website and subscribe to the City Meeting's email list. The agenda is also accessible from any mobile device. Please call the roll.

Randy Alfilio.

Here.

Michelle A. Chalice. Here. Katherine I. Workman. Here. Brian J. Lake. Here. Jacob R. Favalese. Here. Laura E. Tobin. Here. Robert C. Williams. Here. Phillip M. Jones. Chris E. Roberts. Here. Bettina A. Chadbourne. Here. Edward J. Haas. Here. Laura E. Ruttle-Miller. Here. Molly V. Ellis. Here. Thomas F. Powers. Here. Mitchell H. Greenwald.

We are 14 as a quorum. I'd like to ask Councilor Haas to lead us in the Pledge of Allegiance.

I pledge allegiance to the flag of the United States of America and

with liberty and justice for all.

I'd like to recognize Councillor Greenwald for a motion to adopt the minutes of our previous meeting.

Thank you, Your Honor. I move to adopt the minutes of the June 18, 2026 meeting as presented. Second.

Seconded by Councillor Powers. Are there any comments, corrections on the minutes? Seeing none, all those in favor, please show your hand. It passes unanimously. Okay. Four announcements this evening. We are going to recognize July 4th in several ways in our announcements tonight. The first is to recognize the prelude to the 4th, the Swamp Bats Independence Day baseball game will begin at six thirty on friday evening uh... fireworks will follow estimated time is between nine thirty and nine forty five So it should be a good show, always is. And on July 4th, may the 4th be with you. Enjoy the Independence Day holiday. We've got a lot of events occurring in the city, beginning early in the morning with the 4 on the 4th Road Race, sponsored by Pathways for Keene. And dollars raised will benefit their work on rail trails throughout the city. It follows with the Monadnock 250th Independence Day celebration and should be a really good event. A lot of work's gone into it, a lot of people contributing to it. I guess I'll recognize Councilor Ellis. Are there some details you'd like to go over with the council?

No. Show up at 10 to 10.30 and be ready to either carry a banner or ride in the carriage. And it's going to be fun.

It will. It will indeed. So... If there are family members that are younger, any guidance on how we want to negotiate that, deal with it?

Did you have any thoughts you wanted to share?

I think definitely if there are younger people who've never walked in a parade and want to be alongside a family member I think that's entirely appropriate we've invited people youngsters on bikes to take part in the festivities if they do segue on bikes so the parade will begin at 11 o'clock there are some introductory kinds of things to note. One is that if you've got youngsters that are going to be on a bike and want to decorate their bike with streamers and things appropriate to the holiday, that opportunity will be at the Keene State College Spaulding Gym parking lot beginning at 930, people just need to bring their bikes, a parent if they need to be accompanied, and materials will be provided by the 250th committee. Those kids and family members that need to accompany them will line up in the parade and be at the forefront so that they don't get run over and so that they arrive safely at the destination downtown. Then at 1045, there will be a reading of the Declaration of Independence. We've got five members of the Mayor's Youth Council from Keene High School who are going to read the Declaration of Independence. They are skilled and ready to roll. If you are going to be with the carriage and that lineup begins at 1030, no later than 1030, at the Public Works building, that's an important timeline because those mobilized vehicles need to line up correctly and move from the Public Works building to Bruder Street, Baker Street, to Baker Street. And then they'll form into the parade in the order that has been worked out. And Court Blomquist, by the way, has been a real champion of the parade. And as Molly said, if you are with the city council's buggy, then you'll have joined the party at 350 Marlboro Street at 1030 to come up and be part of the carriage and procession. The banner will be accompanied by the carriage. Yes.

Make a slight change in Make sure everybody understands the banner is going to be in front of the horse, not behind it.

Can you turn on your microphone, please?

The banner will be in front of the horse carriage, not behind it. And those few of us that are going to start off carrying the banner will meet you at the corner of Baker and Main Street.

Correct.

At what time? Just by 11 o'clock?

Yeah, be there before 11, please. I know I need to be there for the reading of the declaration. So anyway, and then there's an afternoon of fun, because when the parade comes down to Railroad Square, there'll be a community sing-along led by some vocal groups and vocal leaders in our community, and that'll be patriotic songs. It'll be a lot of fun on Railroad Square. And then there are performances beginning at 1 o'clock by the Nelson Town Band, at 2 o'clock by the Keene Jazz Orchestra. There are other performances that are more band-like, a pop band that are on Main Street, so you can mosey around and move to the music. And the Colonial Theater will be open with a movie playing if you need to be cooled. There will be porta-potties both at the Wyman Tavern and at the Railroad Square. There'll be vendors and food vendors downtown. And there'll be a misting tent on Gilboa Ave. So the committee's done a really good job of trying to anticipate the needs of people. So I want to be very thankful to the primary contributors to this event. I'll give a shout-out because it's short-lived, but Savings Bank of Walpole, Cheshire Medical Center, Fenton Family Dealerships, and CNS Wholesale Grocers, and Mascoma Bank all stepped up with significant contributions. And there are other donors in the community, and if I started down that path, I'm probably leaving somebody out. But thank you to anybody who has contributed to this event, either with their volunteer labor or with their donations. So that's July 4th. I also want to thank folks who attended the council's fiscal policy workshop on Tuesday. I know the city manager will be following up with us with some of the policy changes, suggestions, and questions that needed to be followed up on. Other things that are happening in this month, there is a chronic disease day on July 10th. And I misplaced anything else that there was. Okay, we're moving on. Your Honor.

I have another one hot off the press for you, if I may.

Fire away.

Never say that.

Oh, sure. Yes, it is on.

Thank you very much. I can't see. July 17th, it's a Friday. The Keene Fire Department color guard will present the colors at the Red Sox game. So any opportunity you have to get yourself there or watch it on TV, 7 p.m. kicks off. Right about 7 when they do the color guard and they throw out the first ball. That's $1,900 for you. Thank you.

Okay. I'd like to then ask if our Parks and Recreation Director, Kara Fisk-Hennessy, could come and join me for a proclamation meeting. Thank you. Whereas July is recognized nationally as Parks and Recreation Month, and the 2016 The Power of Parks celebrates parks and recreation and the people who make these experiences possible. Whereas parks and recreation demonstrate the power of connection by providing spaces where relationships grow, cultures meet, and communities bond. And whereas parks and recreation demonstrate the power of play through playgrounds, programs, and youth sports that fuel creativity, joy, and lifelong learning. And whereas parks and recreations demonstrate the power of community by offering public spaces where everyone can gather, celebrate, and heal. And whereas parks and recreation demonstrate the power of nature by providing access to natural spaces and restore, inspire, and improve the quality of life. And whereas parks and recreation demonstrate the power of belonging by creating welcoming parks and programs where everyone feels valued. And whereas parks and recreation demonstrate the power of well-being by advancing health, resilience, and shared community benefits. Now, therefore, I as Mayor of the City of Keene do hereby proclaim July 2026 as Parks and Recreation Month in the City of Keene and encourage all residents to celebrate the power of parks by visiting our parks, participating in recreation programs, enjoying our trails and open spaces, and recognizing the dedicated staff, volunteers, and community partners who make these experiences possible. Thank you for your efforts, and please pass that on to your staff. You're small, but very active.

Indeed.

Thank you, Carol.

Thank you very much.

Thank you. Just a couple of quick words. We have a jam-packed July for National Park and Recreation Month, and we would love to see you at our pools for Water Workout Wednesdays and our pool parties. We would love to see you in our parks for pop-up parks. We would love to see you at Fuller Park, which is right out front of the Recreation Center for our summer concerts. We have so many things going on. Please take a look at our summer events calendar that we have up on our website and join us. Thank you.

Okay. If you want to note another day, it's still coming as far as application, but the Dig into Keene folks are going to have an event that coincides with other events on August 8th. And you might want to mark your calendars as a special day to be downtown and partake in the activities that the downtown group is going to sponsor. Okay. Moving on. We have a public hearing this evening on an application. Would the clerk please read?

I'd be happy to. Notice is hereby given that a public hearing will be held before the Keene City Council relative to an application for residential property revitalization zone tax relief under RSA 79E4-B, submitted by H.G. Johnson Real Estate on behalf of property owners Joe and Cheryl Bagster. for property located at 429 Elm Street. The purpose of the public hearing is to determine whether the structure at issue is a qualifying structure, whether any proposed rehabilitation qualifies as substantial rehabilitation, and whether there is a public benefit to granting the requested tax relief, and if so, for what duration. The owners are requesting the City Council consider sufficient relief that would allow for the rehabilitation and adaptive reuse of an existing barn on the property to create two new dwelling units. Copies of the application and background information are available during regular business hours at the office of the city clerk.

Thank you. To begin this public hearing, I want to recognize Community Development Director Paul Andrus for an introduction. Following that, I will recognize George Hansel, a representative of the owner, and HG Johnson Realty for a description of the scope of the application. Mr. Andrus, would you please?

Thank you very much. Before you this evening is an application submitted by Joe and Cheryl Baxter for residential property revitalization zone tax relief for the property located at 429 Elm Street. Property owners are represented this evening by Mr. Hansel of HT Johnson Real Estate who assisted them in preparing the application and provide an overview of the proposed project. so last year the RPRZ program was adopted to encourage the rehabilitation of existing residential properties and the creation of additional housing units through temporary tax relief staff conducted an administrative review of the application for completeness in accordance with the city's RPRZ program requirements and determined that the application was complete and as a result the committee recommended that this public hearing be scheduled in accordance with RSA 7090 The proposed project involves rehabilitating an existing barn on the property to create two new residential dwelling units while preserving the existing residential uses on the site. Once complete, the property would increase from three dwelling units to five dwelling units. The applicant estimates approximately $200,000 in rehab costs, and the proposed public benefit identified in the application is the creation of two additional housing units. This public hearing is the first step in the city's review process, and following the hearing, the application will be forwarded to the Finance Organization and Personnel Committee for its review and consideration of whether the proposed project provides a qualifying benefit under the city's program and the RSA 79E. The FOP Committee will then make a recommendation to City Council for its consideration. The purpose of tonight's hearing is to provide an opportunity for the council and members of the public to learn more about the proposed project and offer comments as part of the city review process. And so with that, I'll hand it over to Mr. Hansel for his overview.

Thank you, Paul. Thank you, Mr. Mayor, city councilors. So this is a pretty straightforward project. And I'd like to introduce Cheryl and Joe Baxter. They're the owners of the property. And they're what I would consider small to medium-sized local developers and residential property owners here in the city of Keene, really that group of people that, honestly, I wish we had 12 more of who are all working to create this kind of housing in the city. And we've been looking at this for a long, long time. I work with, and I'm George Hansel from HG Johnson Real Estate, working on behalf of the owners. I work with developers, large and small, trying to help them figure out how to do development on their properties. I would say Cheryl and Joe are on the smaller side, and to be perfectly frank with you, there are very limited supports or benefits or programs that folks that are doing a two unit development can really take advantage of. Most of them are designed for big projects where there's a lot of scale and a lot more money involved. And so this is a great opportunity for Cheryl and Joe and others that are doing this kind of work to try and get a modest benefit over a period of years and really have the city and you as the city council recognize their contribution of capital and their ingenuity in a lot of ways to try and convert an otherwise underutilized structure that already exists in the city and turn it into workforce housing so this is uh... the first one that i'm aware of that the city is or that I've done, certainly, and one of the first ones that's being utilized in this way. The property was really, as it exists today, it has three residential units on it. It was really a cottage court before a cottage court was a thing. We went through the process last year, and we actually got that designation as a cottage court. in order to do this new development and what we're talking about is taking an existing barn. There is a picture of it as it existed a few months ago in your packet. It's basically a garage that was used for storage for many years and converting that into two new units of housing. And so it is a pretty significant investment, a couple hundred thousand dollars to do that. They're actually raising sort of the roof, literally, of the barn to create some more head space in the second floor and have come up with a really creative design to create two apartments in there. It fits in really well with the existing use of the property. I don't really see any negative impacts to the neighborhood. I think this is just going to be an enhancement. And so what they're asking for is for you to consider as much as possible to give them some kind of relief and recognition for this investment. I understand this is going to FOP, so I'm going to keep my comments pretty short. And Cheryl, Joe, and I are happy to answer any questions if there are any. Thank you.

Okay. Counselors, questions for Mr. Hanselman? I might start with a couple. The estimated start date that's in our packet says that it was November 2025. Has the project

uh is it near completion the completion day was august 26. yeah so it's not near completion i would say at this point they did they did a lot of work on the shell of the building to get it ready but right now all the interior finishes still need to go in it's not near completion and that's something to kind of that i would look at I think this program may have a little ways to go as far as being really effective for this kind of development. Part of the problem we ran into was Cheryl and Joe started on this project last year and just sort of found out about the program and started working on it this year. And so that has created the timing of everything has created some moment of an issue, but we've been able to work with staff to make sure that there's still hopefully a good benefit if you approve this. But right now, it's just basically a shell. As I said, they've raised the roof to get some more height on the second floor, but they still have to do all the interior work. Do you have an estimated completion date? Hoping to have it done by the fall. I think Joe and Cheryl would like it done as soon as possible.

The other question, I noted the other questions that are part of the application. The Joe and Cheryl. I shouldn't have no trouble with that name. You are not living at that residence.

No, this is an investment property for them.

And I guess I'd just note, I think we just adopted our rules around this revitalization program. So I don't think your application would have been timely had we not adopted those rules. So I think things are occurring in the order that they could. Makes sense. Councilor Feblees.

Thank you, Mr. Mayor, and thanks to staff and the petitioner. Because this is our first one, I just want to make sure that I understand the kind of maximum range here, if the tax relief could provide my math in reading the resolution that we have adopting this is that we could potentially grant up to seven years because this is the five-year base and then an additional two years of tax relief for a project resulting in new residential units. Is that staff's understanding and interpretation of this as far as where our cap is? Mr. Yes, that's our understanding.

Mr. Right. I mean, it is your understanding, it's my understanding that The estimated value of the improvement is something to be left to the city assessor.

That's correct. Yes, that is the analysis that the assessor does. And the assessor has been on site very recently to just understand what the project is.

Councilor Tobin.

Thank you. I don't remember all of the guidelines that we set up around that, but I do, I'm looking here, so it was for no more than four dwelling units, and then this would become five, so I guess I'm just looking for clarification about that. Does that make sense, the question?

Yeah, this is a, I think we've looked at this, the guidelines on the program to understand it's a little gray in terms of how it's, how it can be interpreted for basically what we felt that it met the criteria because it was the two units itself and it wasn't the existing three. So we were looking at this as a creation of two units. Because the three are existing and it's, you know, we looked at it like from the standpoint of the actual structure itself that's being worked on.

Yeah, follow up.

I'm just reading what I'm seeing here and it says is at least 40 years old and contains no more than four dwelling units so that's just kind of what I'm looking to clarify that when we add by adding two units that becomes goes from three to five so is that still within the parameters we we feel like we have determined that we feel like it meets the the program guidelines and intent

Other questions, councillors? Councillor Haas.

Yeah, thank you, Your Honor. Not so much a question for the applicant, but this will go to FOP where the financials will be considered. I think it's important. I'd like to have the city assessor present at that meeting so he can speak in terms of this application, the assessed values, and how it's going to reflect the overall assessment of the city that's underway. Thank you.

Okay, I see no other hands. I will ask, are there people in the audience that wish to speak to this public hearing and this application? I'm not seeing any. Okay. If there are none and no further comments, questions, then I will close the public hearing. And if there are written comments that people wish to offer, they will be accepted by the city clerk's office up until 1 p.m. next Tuesday, July 7th. Written comments must be signed and submitted to the city clerk by that date and time to be included in the record. This matter, because of the tax abatement question, this matter actually, Councilor Haas, is going before the Finance Operations and Personnel Committee on July 9th. Because that's the only question that there really is here. The owner clearly can go ahead with the improvements. The question here for the council is, are these improvements qualified for the abatement program that's established through state statute and city ordinance? Okay. Thank you.

Thank you.

So, moving on to communications, we have a few.

We do, and our first communication is from Michael Giacomo of Let It Shine, and this is the annual request for the Keene Pumpkin Festival license, and that event is scheduled for October 17, 2026.

This is going to be referred to the Planning Licenses and Development Committee.

And our next communication is from Stephen Sureshik of the Yankee Bottle Club. This is a communication requesting support for the installation of a Keene Glass Company historical marker on the rail trail.

I think that's the Cheshire Rail Trail, right?

Cheshire Rail Trail, yes.

And we'll refer this to the finance... Organization and Personnel Committee because of the financial nature. That's really the only question that there is around this project at this point is the financing of any marker along that trail. Okay, next.

Next, we have a communication from Councillor Filio, and he is requesting consideration of an ordinance amendment that would regulate dogs at downtown events.

And we are referring this to the Planning, Licenses, and Development Committee, which is meeting this Wednesday, and we'll see how far they get on this.

Our next communication is from Eric Murphy, and Mr. Murphy has submitted a petition on behalf of residents of the Lincoln Street, Roxbury Street area, and this is related to safety improvements at the South Lincoln Street and Roxbury Street intersection.

We'll refer that communication to Municipal Services Facilities and Infrastructure Committee.

Okay. And our last communication is from Councillor Williams, and this communication requests the consideration for restricting the sale of seven hydroxymitragynine and concentrated Kratom products.

Well said. We'll refer this to Planning Licenses and Development Committee in the event that this does result with a request by the Council for the development of an ordinance. It keeps this then consistently in a single committee. Yes, Councillor Greenwald.

Thank you, Your Honor. Those of us that are not chemists, what is this?

I yield to Councillor Williams.

So there's a tree called the kratom tree that grows in Southeast Asia. And it has leaves that have some interesting chemical properties and has been used in Indonesia for generations as a tea. More recently it's been exported to the United States and some clever people have been able to figure out how to extract the more interesting chemicals from this leaf. And because it's marketed as an herbal supplement, it can be sold in gas stations and convenience stores without any regulation at all. And the problem is that some of these chemicals affect opiate receptors. in the brain and you know we've had some very tragic history in the past of opioids getting out of hand with Oxycontin then turning into a heroin epidemic. And I'm concerned that if we have these unregulated products available in stores without any restrictions at all, that could cause some serious problems for a lot of people. So I think we should take a look at this.

Okay, thank you.

yeah it'll be an interesting hearing with the PLD and yeah state legislature has dealt with this question in the past I don't think they've had they've developed any regulations or guidance around it yet so it'll but there's probably public record on this so yeah plenty of information available Okay. Moving on to, uh, council committees.

Yes. And with your permission, I'll read the first four into the record.

Yes. Well, I think, am I missing one?

Oh, I'm sorry. We have one before we get to that. Uh, our first item is a municipal services facilities and infrastructure committee report. related to a request from Councillor Haas for project information and signage and enhanced public outreach for capital projects. And on a vote of five to zero, the Municipal Services, Facilities, and Infrastructure Committee recommends the communication from Councillor Haas be referred to the city manager.

I recognize Councillor Greenewald for the motion.

I move to carry out the intent of the committee report. It's on.

It's always on. It doesn't look like it's on. Second.

I can't tell if it's on or not. It's always on.

It usually is red. Yes, it's on. It's on. Good.

Second.

Thank you. Thank you. Councillor Haas came to us with this very good idea. More public information is good. And the city manager said she would work with this, and therefore it's referred to her office. And I also note that I'm seeing signs around saying that this site, like on Winchester Street, is the site of a zoning issue. I know it becomes a little problematic of when do we notice, when don't we, and do we incur liability if we don't notice properly. So it's a good one for the city manager and city attorney.

Okay. We have a recommendation from the committee. No questions, I don't see any hands, so all those in favor? Thank you. The manager will get back to us with her thoughts on this. So the next four items, all are reports that are recommended as informational, so the clerk is going to read the four items, and then we'll consider is there anything that you want to separate out.

So the first is a Municipal Services Facility and Infrastructure Committee report, and this is related to a Communication from Elizabeth Hansel requesting the consideration for resolutions regarding single-use plastic reduction. The second is an MSFI report and relates to a communication from Skye Stevenson related to tree replacement along Maple Avenue. The third MSFI report was from Kenneth Cost. It was a communication updating the city on the stewardship of 100 Church Street and a request for a pocket park designation. And then finally, the fourth was a MSFI report updating on the downtown project

So all these reports, they're all in our packet. The public can take a look at our agenda and see those reports, but they're all recommended as informational and so accepted. And Councillor Greenewald?

It slowed down the process. We have a downtown coffee and hardhats scheduled for, just to remind the public,

It's in my note. Yeah, July 8th at 9 o'clock at the Transportation Center.

Meeting number 90. 91.

Correct. Okay. So those are filed as informational. Moving on to item D6.

And this is a finance organization and personnel committee report relative to the acceptance of a donation for the sustainability assistant planner. And on a vote of five to zero, the finance organization and personnel committee recommends that the city manager be authorized to do all things necessary to accept a donation of $25,000 per year in aggregate for three years beginning in fiscal year 2026-27 from various donors and that the money is allocated to fund a portion of the annual salary of the assistant planner sustainability position in the community development department.

I recognize Councilor Powers for a motion.

Thank you. I'll move to carry out the intent of the committee report.

Second. Seconded by Councilor Lake.

City Clerk really highlighted all the important details. $25,000 authorized as a city manager to accept that. I hope if we get a little extra, we'll take that too. $25,000 a year for three years, and it's to help with the additional cost. They're associated with changing this position from a three-quarter time to a full time with a primary responsibility towards sustainability. Recommend that we pass this unanimously. Thank you.

Thank you, Counselor. Any comments from the committee? We've gone through this one with the budget process. Okay. All those in favor? Motion carries unanimously. Thank you.

All right, Blake.

Moving on to D7.

And this is a Finance Organization and Personnel Committee report, and it is an informational update on the FY26 Fire Department budget.

And we'll file this as informational. It is something that we'll take up again. I think the manager has indicated that our August 6th meeting is going to cover a couple of departments that have had some budget pressure in the last fiscal year. Okay, moving on to D8.

Finance Organization and Personnel Committee report relative to property tax exemptions and credits review. On a vote of five to zero, the Finance Organization and Personnel Committee recommends that the city manager direct staff to draft resolutions for the following exemptions and credits with the following amounts. Deaf, severely hearing impaired exemption, $55,000. Blind exemption, $30,000. Elderly exemption 65 years to 75 years old, $55,000. Elderly exemption for 75 to 79 years old, $75,000. Elderly exemption 80 years plus, $100,000. Disabled exemption, $55,000. Income limits for the deaf, elderly, disabled exemptions for single, $40,000, and married, $60,000. Asset limits for the deaf, elderly, disabled exemptions single, 75,000, and married, 110,000, and also readopt the solar exemption. Further, on a vote of 4-0, the Finance Organization and Personnel Committee recommends that the City Manager direct staff to draft resolutions for the following exemptions and credits with the following amounts. Optional Veterans Credit, 450, All Veterans Credit, 450, and Service-Connected Disabled Veteran Credit, 4,500. And then finally on a vote of 4-0, the Finance Organization and Personnel Committee recommends amending the motion to include a resolution for RSA 72-28C, optional tax credit for combat service.

So you noticed in the clerk's reading of this item that there are three separate motions in the committee's report. And we're going to take each of those items up separately so that we can recognize a, allow Councilor Roberts to participate in the first vote. but to recuse himself on the other two motions that relate to veterans' tax credits for which he has a standing conflict of interest, which is on record. So seeing no exception, no objection to that, we'll take up the first item and recognize calls for powers for the motion.

Thank you, Your Honor. I move to carry out the intent of the committee report. Second.

Second.

Seconded by Councilor Chadford.

So I want to point out that we are not taking action on what we're doing is directing the manager to prepare all of the various proposals that need to come before FOP and then we'll come back to the entire city council for adoption. This is something we do periodically, mostly centered around re-evaluation of the city. There's quite a bit of work done in advance by the assessor's office and made recommendations to the committee, and we agreed with those recommendations. So I'd like to see his vote on the first part, the first section. Again, it's directing the city manager to get us more action before us. Thank you.

Calls for a house.

Thank you, Your Honor. Could you specify what's in the section, the first section, and then what's in the second section, the third section?

Yes. If you look at page 82 in your packet, it covers the first ten, nine or ten items. that the clerk read. So it recognizes deaf, severely hearing impaired, blind exemption, elderly exemptions, disabled exemption, and a solar exemption. Thank you, Your Honor.

Yeah, I wasn't sure if the solar exemption was in there. I need to recuse myself. I'm recipient of that exemption at this time. So I need to recuse from this vote. What did you say?

Okay.

I'll need to recuse myself as well. I do have that exemption for my tax bill.

What?

I'm sorry.

I'll need to recuse myself as well as I do receive that solar exemption on my tax bill for my property. Is that what I'm understanding?

Both counselors have taken note that they received this exemption, so in the same vein as anybody else, they are beneficiaries and are asking to exempt themselves from the vote.

I guess I'll join the club.

Me too. You have a solar panel and I have an exemption on property. Well, I'll turn to the attorney to offer any guidance. This is not the, this is the request to draft the resolution and not the resolution. So give us some guidance.

Well, under the rules, it's fully up to the city council to determine if the other councilors do have a conflict. The vote, even though it is about a resolution, there are the amounts assigned to it. And while that still could change, if the councilors feel that that's a financial interest that they would be receiving through that vote, that would be appropriate for them to raise that.

Councilor Lake.

Thank you, Mr. Mayor. I personally would say that the councilors shouldn't need to refuse themselves. I go back to the budget season, right? The councilors are going to be involved in a number of different things. If we're accepting these as a package and those councilors aren't making amendments to specifics that they are therefore affected by, I don't see where the conflict would be if, again, this is a package that we're recommending here. Just same thing for the budget.

So you're sort of interpreting this as there is no gain. Anybody in the city that has a solar panel could qualify for this exemption. So there's not a specific benefit that accrues to these counselors that doesn't exist for everybody else in the city. Is that the way that you would interpret this?

mean I think that that's a valid interpretation maybe the manager I'm not legal but I will add just that this is the readoption of the solar exemption so we already have this exemption in place and what this exemption does is whatever the value of your solar panels or your project is that assessed value is exempted from taxation so it's increased by the assessed value and then it's taken off so that there's no impact to your taxes from solar projects throughout the city of Keene.

Councilor Filio.

I agree with Councilor Lake. Over the years, obviously, we've gone back and forth on conflict. But if we get to this point, we could literally say, well, none of us can vote on increasing the budget because it affects all of us. It affects our tax rates individually. If we get to that point, we couldn't even vote on a budget. So, you know...

i appreciate the fact that we're very careful when we talk about conflicts i think we're crossing over a little bit to the point where we're going too far to the point we won't even be able to vote on the budget if we if we go down this this trail i i appreciate the counselors who raised the question because there is a benefit that they received but again anybody in the city would qualify for this benefit there's no Nothing that you've applied for that doesn't affect, that gives you any gain that anybody else in the city could receive? Councillor Fevelles.

Thank you, Mr. Mayor. I hear the points that Councillor Filio and Councillor Lake are making. I guess the council, when the veterans tax exemption came up, or tax credit came up, allowed Council Roberts to recuse himself, and so I'm maybe not sure why the committee would have split out the veterans' tax credit if the argument is going to be that if they're all in a package together, nobody has to recuse themselves. So I see a little bit of an inconsistency there. I don't know if other counselors do, but I'm maybe not as aligned with Counselor Lake and Filio on this, based less, I think, on their arguments and more on what we've done and what I view as a very similar situation on this very issue. Mr.

Counsel Roberts.

There's a couple reasons, excuse me, where I think I fit into a different category. First one is the perception. So when you're talking $4,300 off your tax bill, that really gives the perception that, oh, I'm doing something to personally gain. But as my job as a VSO, My job is to get as many people who I think deserve it qualified to get this tax exemption. And so over my nine years, there's about 25 people that I personally worked for and went through the system that are on this tax exemption. So you could come across what it is. You could say, hey, he's being picky and choosy who he wants to work with to get this tax exemption. So there's so much doubt and question that can be in, am I working for myself, or if I'm being fair with the people I work? to work for these and so normally yes i would say do i benefit any more than anybody else in my situation if i was just a regular disabled veteran no but part of my job then makes a big difference good thank you for that clarification uh counselor ellis

Thank you. I think a difference is that, for example, I don't have solar panels right now, but I would like to get them eventually. So should I recuse myself because I'm planning on getting them in the future? But nobody's planning on becoming a totally disabled veteran. So I don't think that... I think it becomes a little ridiculous if we all start accusing ourselves because maybe someday I'll buy a home and put solar panels on it and I could benefit. To me, that doesn't make sense.

Thank you. Thank you.

Thank you, Your Honor. I just want to thank the counselors who brought this to our attention. But I also want to remind us that it is still up to the council It's the councillor's responsibility to raise the question of a potential conflict of interest, but right now the question is do we accept that as a conflict of interest. So I'm almost ready to beg the question.

The question's been called. And I think we've debated it sufficiently. If you favor exempting those who received the solar exemption from this vote, please indicate you're in favor. Yeah, I couldn't hear you. Three counselors have said that they received the solar exemption. If you agree that because they received this exemption, they should be recused from this vote, please indicate by saying yes. Yes.

I just want to make sure that I understand because we just, so we had a conversation about whether they should be allowed to recuse themselves and I guess I would be curious after that discussion if they still feel the need to recuse themselves or not. I don't know if that makes sense but I don't want to, I don't know that I feel like I want to say no you can't vote or yes you have to vote.

Actually our rules say that it is the council's decision and not theirs. uh so i think we need to let this go question's been called i'd like to see the vote all those in favor of exempting counselors from this vote raise your hand two all those opposed to exempting I think they can. So there are four, five, six, nine, 11, 13. Well, it must be 12. Okay, 12 in opposition. All right, we're all voting on this motion. So there you go. I just wanted to ask Council Powers or the manager, are there any changes to these dollar amounts from previous years? There are, okay. They're no doubt noted in the discussion.

Yeah, the assessor brought forward an increase that was based on an anticipated increase in assessed values of 60%. So to equalize the value of the exemption so that those who are receiving the exemption now continue to get the same level of exemption he proposed these numbers.

Hence, we need a new resolution, a new ordinance. And in that ordinance, we'll note the changes that there are?

Yes.

Councilor Greenwald?

I just want to get this straight. So early in the year, we have to reaffirm?

Can you turn on your microphone, please?

Do we have to reaffirm the solar exemption every year?

The answer is no, but the assessor is going to add to that.

Dan Langell.

Good evening, Dan Langell, city assessor. The reason why I'm asking for the council to readopt the solar exemption this time is because the law has changed. In order to exempt properties that have net metering, then you have to readopt the solar because it happened after 2020. 2020 is when that new law came into place, and the council previously adopted it prior to that. So in order to allow net metering, you have to readopt it. Once it's readopted, that's it. Correct.

Thank you. Thank you, Your Honor.

I think it becomes upon us that we should be scrupulously careful of when we're voting for anything that essentially puts money in my pocket, in our pockets. Now, I understand the idea of a broader view of things, and I think about it in terms of, suppose a majority of the council had solar panels on their house. Would we all need to recuse ourselves? That would get a little funny. But at that point, maybe we need to reconsider how solar exemptions are considered and just build it into our city code that they're not taxed or something like that, rather than granting individual exemptions to individuals who take advantage of this. So I support the idea of exemptions, of course, promote different things and support some populations, but I'm uncomfortable with any time I'm voting on something that's giving me a direct benefit. Thank you.

Councillor Ruddle-Miller.

We didn't think this was going to take this long, did we? Thank you. I think it's on the record who is benefiting from this at this point. It's not hidden. Was there anyone else who has solar panels who would like to share with the group? I don't. But I think that we can just leave it. It will be in the Sentinel article. Everyone's aware, so...

Thank you. Okay, we have talked this through. All those in favor of directing our city leadership to prepare a resolution, please indicate by raising your hand. Motion carries unanimously, thank you. Okay, we're moving on to the second part of this. Councilor Powers.

Thank you, Your Honor. I move to carry out the intent of the committee report.

Second.

And this is the... Go ahead, Counselor.

So, Your Honor, this is for the three veterans' credits and exemptions. Once again, we visit this from time to time, particularly around the re-evaluation. The values and the credits themselves are really in the state statute, and we follow it and make it agreeable to what we do in the area. As we go through these, some of the comparisons that the assessor made is to look at what are comparables in other communities. So we're right in the middle of the pack in treating folks the way we should. Thank you. Okay.

Councilor Lake.

Thank you, Mr. Mayor. I just want to clarify. Is it just the three pieces? Are we handling the fourth one, which I believe we had amended to include in? Are we handling it separate? Yes, sir. We are. Okay.

Yes. Okay. We are dealing with just those three. Yes, sir. And ready for the vote? All those in favor? Motion carries with one exemption, one recusal. And so there was unanimous vote. And we'll move on to the third part of this.

Thank you, Your Honor. I move to carry out the intent of the committee report.

Second.

Seconded by Councilor Greenwald.

So in this case, after we got through going through all the listed elements, it came to our attention that there... show off. There may in fact be another exemption available for veterans and we did not have all the information available but we did not want to pass by without this opportunity so what we've done is directed as we have with all the rest the manager to draft an order or a resolution if we can to recognize that particular rsa rsa 72 colon 28c it's an optional credit for combat service thank you thank you comments or questions seeing none all in favor of this recommendation motion carries unanimously with one refusal

We're going to move to the city manager's report in just a moment. I just wanted to say two things. One, Councilor Powers, I think you win the dress code award for the evening. He read the memo. Because of the heat and the lack of air conditioning in this chamber, which we have some tonight, but not quite... what it ought to be and so we are we're waiving our dress code so that allowing but it was also the challenge was also that we consider wearing red white and blue in consideration of our patriotic 250th July 4th Independence Day celebration so if folks notice a more relaxed chamber it is because of suggestions made prior to the meeting. The second thing I wanted to do is I took the handoff from Councilor Ellis relative to the the fourth of july parade and uh menandoc 250th uh and and recited a few things but i do want to encourage uh everybody in the city do come down to main street that day this is going to be truly an exceptional parade uh molly i believe that there are 60 entries in the parade. Some of those are one-off, an antique car that somebody owns. But this is a community-wide and a region-wide event that represents many facets of our Menandoc region. So I do hope people will be exceptional and certainly take an hour to move the various groups and vehicles through the downtown area. Well, from Baker and Main Street to Railroad Square. And there will be some transportation on Main Street. So if people start off on Main Street but they are parked someplace else, we can get you closer by moving it. And do recognize, too, the Keene State College's in-kind contribution on this is to open up their parking lots mostly along Winchester Street, so there should be ample parking both in the downtown area if you get there early enough to seize one of those, and at Keene State College. If you access along Winchester Street, Winchester Street will not be obstructed during the day, only at the intersection during the parade. Yeah.

okay manager the report is all yours all mine all right good just a few things for you this evening We are about to have another Dinsmore Woods Walk. Our Parks and Rec Director secured both Alex Barrett, our contracted forester with Longview Forest, and Elisa Sargent, our Southwest Regional Stewardship Manager with the Society of Protection of New Hampshire Forest, for a post-harvest Dinsmore Walk. That is next Thursday, July 9th at 10 a.m., And if you are interested in attending, please park at the Jonathan Daniels School parking lot and start the Woods Walk from there. So I know this is something that many of you are very interested in. And the mayor already mentioned our fiscal policy workshop, and based on the feedback we received, staff will prepare a draft resolution incorporating the proposed changes. for the Finance Organization and Personnel Committee meeting next Thursday, where the Council will continue to review the proposed updates to the fiscal policy. And then the Downtown Infrastructure Improvements Project. We had our pre-construction meeting. There's a lot of people in this room. So it happened on Tuesday, June 30th. This meeting included our contractor, GPI, our engineering oversight consultants, our internal staff, DPW, water, sewer, Keene Police Department, fire, parking, communications, our ombudsman. We also had DES. And we had our utility reps. So utility, oh my gosh, Liberty's Utility, sorry. I had it backwards. Liberty's Utility. was of note because they are expected to start the work on July 13th and then Kinsella will begin on July 27th. And the hope is that Liberty will be able to accomplish their underground work on one side of the road, move to the other side so that then Kinsella could come in the two can attempt to stay out of each other's way so there's a lot of coordination going on with this project and a lot of technical ground was covered in regards to contract requirements funding requirements traffic plans but most importantly we stress the need for constant communication and coordination because honestly we will work really hard to coordinate all these things but things will change and they will evolve and the most important thing is to have the good information and to communicate that information. And that, I think, is a full-time job. And Councilor Greenewald already mentioned the next Coffee and Hard Hats meeting, which is July 8th. It's going to be the second Wednesday of each month at 9 a.m., and this next one will be at the Transportation Center. I have one more update for you. It's a little bit more complex, and it will be at the end of the evening tonight.

Thank you. A question, .

It's not a question. It's a statement. May I just kind of tack it on? Okay. It's just I was just talking to somebody this week who just moved to Keene literally this week and they were specifically noting that they've been registering their child for classes at Keene State. And he said in his personal life experience at University of Michigan and UPenn and all of these like very large universities, He said his experience in Keene and at Keene State so far has blown both of those places out of the water with how kind and personable and like caring everybody has been. And I know he's had some interactions with the city so far too. So I just wanted to say like I know I kind of think of Keene State and the city as one entity because of that's how I came here. But I'm just really proud to hear when people have been here for only a week that they have been so welcomed into the community so fast.

That's awesome. Thank you for sharing that.

Yeah, good job.

Even I got questions there and got back.

He said you were great.

I've never talked to you. Yeah, got it. Thanks. Okay. We are moving on then to ordinances for the first reading, and would the clerk please read that?

Certainly, we have a memorandum that was submitted by our Human Resources Director. It relates to Ordinance O-2026-12, and the recommendation is that Ordinance O-2026-12 relating to wage schedule revision be referred to the Finance Organization and Personnel Committee.

And we will do that. It's referred to FOP. Okay.

and we have one additional ordinance for first reading this was submitted by Steven Ringland and it relates to an zoning map amendment for zero Howard Street it's proposing to change the zoning designation from medium density to conservation and this is accompanied by ordinance Oh 2026 13 we'll refer this to the joint planning and PLD committee

And we move on now to resolutions.

We have one resolution this evening. This is a municipal services facilities and infrastructure committee report. relating to Resolution R202622A, relating to the absolute discontinuance of a portion of right-of-way across a portion of property located on Elm Street. And on a vote of 4-0, the Municipal Services, Facilities, and Infrastructure Committee recommends the adoption of Resolution R202622A with changes expressed by the City Attorney. And we have before us Resolution R202622A, related to the absolute discontinuance of Zero Elm Street, property across Zero Elm Street.

And Councilor Greenwald has put on the record previously a conflict of interest on this matter. It relates, he's got a business relationship with the petitioner and therefore is refused from voting on this matter. And I'd like to recognize Councilor Workman for the motion.

Thank you, Your Honor. I move to adopt Resolution R-2026-22-A. Second. Second.

Seconded by Councilor Fabulis. Thank you. Councilor Workman for the committee.

So we heard from the petitioner's attorney who provided the committee with an overview of how and why the resolution came to be before the committee. In essence, the resolution is a formality and necessary because of statute requirements to clarify historical records. The right-of-way was laid out in 1866 and never developed or utilized. The discontinuance is necessary as it impacts the property owner's plan to complete an 18-unit condominium project on the parcel. This resolution was drafted in collaboration with the necessary staff, and as outlined in the resolution, there is a water main that is currently located in the right of way that's to be moved within the existing traveled way of Elm Street, which makes it easier for the city to maintain. The only minor changes noted in the motion were the correction of the directions north, south, east, and west that were listed. So, like we said, MSFI committee recommended this adoption, and we hope you do the same.

Okay. Are there questions? 1866, a long time ago. All right. I see no hands or no comments, questions on this one. You've got the item in your packet. So taking a roll call? Just a simple show of hands. Okay, never mind. All those in favor of the motion is presented. Motion carries unanimously with one recusal. Okay. We have reached the conclusion of our meeting with the exception of, we'll stay in open session, but the manager has one further item.

Yes. Before, just point of order. Just before the manager speaks, there's an issue I wanted to bring up the last couple weeks. It just has to do with our rules of order. It has to do when a counselor calls a question. And we've kind of skirted away from that rule of order. When somebody calls a question, first of all, it needs a second. When it's called an executive, there's no further discussion, and it takes a two-thirds vote of the council to uphold that rule of order. If that rule of order is upheld, then the question is moved. But if that doesn't happen, we're not following the process. Procedurally correct. I just want to point it out because I think the last three council meetings somebody's made a motion to call the question We've said okay move on we can't that doesn't follow the rules of water per se I just wanted to point that out.

Thank you Review that and make sure we're consistent Okay

All right, so tonight I'd like to give you an update, and this update is related to the solar project that we are building at the airport. Now, if you remember, back in September of 2025, so last year, the council reviewed the financial package for the solar project. It's a five megawatt solar project. It's, I think, going to be the largest municipally owned mega... solar project in the state of New Hampshire. It's municipally owned. And one of the things that we talked about during this review was that there was an opportunity for a federal tax credit. So this 30 percent federal tax credit that in the past private developers have been taking advantage of and we in the past have not owned the project so we've not been able to utilize that credit. So we did a lot of work to get that project going within the timeline to try to safe harbor that tax credit. So you voted for the project, you authorized the bond, you authorized me to negotiate and execute the contract with revision and we did all of those things. So we also purchased the panels through revision because this is where it gets a little complicated. The big, beautiful bill changed things. And this was after we moved forward with this project. There was in July of 2025, there was the beginning of a conversation about the eligibility for what's called the 5% safe harbor. Now, the 5% safe harbor is when you buy 5% of the goods needed to build your solar project. And in this case, we bought solar panels. And Revision bought those panels and put them in their warehouse to make sure that we were eligible for the safe harbor. But after the bill, there was an IRS determination saying that projects over 1.5 megawatts would not be able to utilize the 5% safe harbor provision. Seems quite unfair since we were already well into this project. But at that time, we were looking at if there was another way for us to be able to access the tax credit. So in September of 2025, we moved forward. And then most recently, we had a meeting for another way to access the tax credit. In preparing for that meeting and this other way of accessing the tax credit has to do with buying by America. So buying a certain percentage of the products needed for the project in America and certifying that they are from American manufacturers. So this is a harder way to go to access the credit, but we were working with revision in an attempt to still go after that tax credit. So in preparation for this meeting last week, I did some homework trying to understand exactly what we needed to do and came across a recent court decision. On June 6, 2026, the federal court vacated the IRS notice, and that meant that now we are potentially eligible again for the 5% safe harbor that we had been working towards. Now, this is potentially $2.9 million. So, it's a big deal. So, Revision, who is closed this week, opened up, had an emergency meeting. We met with them and talked about the ways to access the credit. And if that order is not overturned, it's likely going to be appealed, and it'll be appealed at the federal court. If it's not overturned, we are in good shape. We won't know that until I think the 90 days is up, which is going to be mid-August. Too late for us to decide on whether we buy American steel for the racking system that we need to have in place for the solar project. So if we are to try to preserve the credit, the second avenue from accessing the credit, we would potentially need to do a purchase order with revision for American Steel. That could be about $200,000. So this is a $4.3 million project. It's a small change order comparatively, and it is within my scope to do the change order. However, the concern that I have is if I and to execute that change order, there needs to be a reasonable expectation that we will be able to get that American steel. The reason for that is we must also have the airport project up and in service by the end of 2027, so December of 2027. So I can't jeopardize that in-service date But at the same time, we take the risk that the court order could be appealed and overturned. So we were trying to understand the best avenue and analyzing these two options. I've asked Revision to go to their suppliers and find out if they can reasonably assure me that we can get the American steel without a significant delay. Because if we can, for a purchase order change of up to $200,000, It is worth it to preserve and have another avenue to access the credit, which could be potentially $2.9 million. If, though, they are unsure that they can get the steel within a reasonable amount of time, I do not want to jeopardize the first 5% safe harbor from the panels that we've already purchased and the court order that is currently in our favor. See the week I've had? So I've tried really hard to like condense this down because it's a complicated subject and there's a lot of nuances to it. Not to confuse it more, but I will. So the federal government is phasing out that credit. So originally, you could get 100% of that credit, that 30% rebate. Now, in 2026, it's down to 85%. That's the $2.9 million. If we did get the 5% Safe Harbor and the Buy America Steel, we could get the remaining amount of the tax credit, which could be about 400. I'm just doing rough numbers, which would be more than the cost of the change order. to buy the American steel. So, again, it's another incentive, but there's a second piece of that. So, I know, this is not, this is my life. There's a second piece of that. So the panels that we purchased in 2025 are not by America. So there's a total percentage for the project that has to be certified as by America or you have to have an exemption. In 2025, those modules were not available. And we would not have been able to buy them domestically. So I would need to get an independent agency to verify that. And this all gets submitted to the IRS. So I've contacted one. I'm waiting to hear back what the process would be, what their thoughts are, are they able to do that because that also impacts my decision as to whether or not to do the change order because we need both things to happen. You need the steel in a timely manner and you need an exemption for the panels because of the value of the panels from that Buy America clause in order to meet the overall percentage we need. So, next week will be decision time. And I will know, hopefully, whether or not we can get the study that we need related to the panels we purchased in 2025, and whether or not we can get the steel that we need in a timely fashion. If those things happen, I'll execute a purchase order change in the contract for up to $200,000. I will then be back to the council to amend your bond resolution by $200,000. So that's what I wanted to tell you and I did not want to make this decision without alerting you about all of these moving parts and take your questions or concerns tonight because I do need to make the decision next week if not next week probably the middle of the following week.

That was simple.

I tried to simplify it. So the two takeaways. One is the manager, I think you're trying to... act in the best interest of the city and have the greatest savings from this project that we can. You've acted in that manner from the get-go, and clearly there are hurdles in executing that. So great that you're staying on top of it and holding people accountable. The second is there's a bit of a catch-22, and you're making this initial bet that if you risk the $200,000, there's the potential of a $400,000 gain, which pays off the $200,000 and winds up with even greater savings on the project. So, I mean, this is a good thing, and I appreciate that you brought it to our attention because this was complicated from the get-go.

Very, very complicated. And I will just say that I had pretty much settled on the fact that we weren't going to get that original 5% safe harbor. until i found this and i have to tell you last week i was pretty much jumping out of my chair when i was preparing for the meeting i was like i think this court order reverses it and so i'm just excited that we have that opportunity again because going the other path is more work and it's not as guaranteed but I want to remind the council that even without these tax credits we did the analysis without the tax credits we are still saving or saving eight to thirteen million dollars in net savings afford that on this solar project over the next 25 years so Factoring in the cost. This is a net metering project. It's going the credits were coming from our net metering agreements and It's still a very very good project that makes a lot of financial sense But obviously I want to get as much money as we possibly can to offset the overall cost And make those savings more counselor families

Mr. Thank you, Mr. Mayor. And actually part of my comments were going to be that as I recall the initial discussion, recalled that we actually didn't think we were maybe going to get the five percent purchase in and um or five percent encumbrance or whatever the language they use is and so but the financials were going to make sense so i appreciate the manager bringing that up because i was going to clarify my understanding of that you said this was a federal court decision that you expected to be appealed do we have a sense of whether it is a favorable circuit for us oh geez i do not have that magic crystal ball it's going to be in the dc circuit which from my understanding can go either way

okay we're good uh thank you for the update and we'll hear more in a future council meeting okay seeing no further business before us this evening we are adjourned