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Board Of Aldermen - Minutes - 5/24/2022 - P3

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Tue, 05/24/2022 - 00:00
Meeting Description
Board Of Aldermen
Document Type
Minutes
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
3
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_m__052420…

Board of Aldermen 05-24-2022 Page 3

Claudia Decker Term to Expire: May 24, 2025
59 Robinson Road
Hudson, NH 03051

There being no objection, President Wilshire accepted the nominations and referred them to the Personnel/Administrative
Affairs Committee.

REPORTS OF COMMITTEE

Task FOrce...... 0... cece eee eee teeta e eee ee eee e eee eeeee eee 03/30/2022, 03/31/2022

There being no objection, President Wilshire declared the reports of the March 30 and March 31, 2022 Task Force be
accepted and placed on file.

Joint Meeting — Committee on Infrastructure and Planning & Economic Development
COMMIttCE... 2... eee cece eee eee eee eee teeta eee ee ea ese ee eens ea eeeeaeseeeeegeeeteeeeesenaeess 03/30/2022, 03/31/2022

There being no objection, President Wilshire declared the reports of the March 30 and March 31, 2022 Joint Meeting of
Committee on Infrastructure and Planning & Economic Development Committee be accepted and placed on file.

Special Budget Review Committee...............c cece cece cee ee eee e eee eee ce eee eee ee ee eseeeeeeeeeaeeeeeaeaaes 04/11/2022

There being no objection, President Wilshire declared the report of the April 11, 2022 Special Budget Review Committee
be accepted and placed on file.

There being no objection, President Wilshire suspended the rules to allow for the oral report of the Budget Review
Committee meeting held last night regarding proposed Resolution R-22-032.

Alderman Dowd gave an oral report of the Budget Review Committee meeting of May 23, 2022 with respect to Resolution
R-22-032.

CONFIRMATION OF MAYOR'S APPOINTMENTS - None

UNFINISHED BUSINESS — RESOLUTIONS

R-22-032
Endorsers: Mayor Jim Donchess
Alderman Richard A. Dowd
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman John Sullivan
Alderman Patricia Klee
Alderman-at-Large Melbourne Moran, Jr.
Alderman Thomas Lopez
Alderman Alex Comeau
Alderman Derek Thibeault
Alderman-at-Large Lori Wilshire
APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN THE NASHUA
BOARD OF EDUCATION AND THE NASHUA TEACHERS’ UNION, LOCAL 1044, AFT, AFL-CIO, UNIT D, FOOD
SERVICE WORKERS FROM SEPTEMBER 1, 2021 THROUGH AUGUST 31, 2024
Given its second reading;

MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-22-032
MOTION CARRIED

Resolution R-22-032 declared duly adopted.

UNFINISHED BUSINESS — ORDINANCES

Page Image
Board Of Aldermen - Minutes - 5/24/2022 - P3

Board Of Aldermen - Minutes - 5/24/2022 - P4

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Tue, 05/24/2022 - 00:00
Meeting Description
Board Of Aldermen
Document Type
Minutes
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
4
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_m__052420…

Board of Aldermen 05-24-2022 Page 4

O-22-011
Endorsers: Alderman Alex Comeau
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman John Sullivan
Alderman-at-Large Melbourne Moran, Jr.
Alderman-at-Large Ben Clemons
Alderman Tyler Gouveia
Alderman John Cathey
AMENDING THE ZONING MAP BY REZONING LAND SITUATED NORTH AND SOUTH OF LAKE STREET AND
WEST OF PINE STREET FROM LOCAL BUSINESS (LB) TO LOCAL BUSINESS WITH MIXED USE OVERLAY
DISTRICT (LB/MU)
Given its second reading;

MOTION BY ALDERMAN MORAN FOR FINAL PASSAGE OF O-22-011
MOTION CARRIED
Ordinance O-22-011 declared duly adopted.

NEW BUSINESS — RESOLUTIONS

R-22-036
Endorsers: Alderman Patricia Klee
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman-at-Large Melbourne Moran, Jr.
Alderman Derek Thibeault
Alderman-at-Large Lori Wilshire
AUTHORIZING PENNICHUCK CORPORATION TO RENEW AND EXTEND ITS LINE OF CREDIT WITH TD BANK,
N.A.
Given its first reading; Assigned to the PENNICHUCK WATER SPECIAL COMMITTEE by President Wilshire

R-22-037
Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman John Sullivan
Alderman Patricia Klee
Alderman-at-Large Melbourne Moran, Jr.
Alderman Thomas Lopez
Alderman Richard A. Dowd
Alderman Derek Thibeault
Alderman-at-Large Lori Wilshire
RELATIVE TO THE ACCEPTANCE OF $1,031,630 FROM THE STATE OF NEW HAMPSHIRE DEPARTMENT OF
HEALTH AND HUMAN SERVICES INTO VARIOUS PUBLIC HEALTH AND COMMUNITY SERVICES GRANT
ACTIVITIES
Given its first reading; Assigned to the HJMAN AFFAIRS COMMITTEE by President Wilshire

R-22-038
Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Patricia Klee
Alderman-at-Large Melbourne Moran, Jr.
Alderman Thomas Lopez
Alderman-at-Large Ben Clemons
Alderwoman-at-Large Shoshanna Kelly
Alderman Alex Comeau
Alderman Richard A. Dowd
Alderman Tyler Gouveia
Alderman John Cathey
Alderman Derek Thibeault

Page Image
Board Of Aldermen - Minutes - 5/24/2022 - P4

Board Of Aldermen - Minutes - 5/24/2022 - P5

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Tue, 05/24/2022 - 00:00
Meeting Description
Board Of Aldermen
Document Type
Minutes
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
5
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_m__052420…

Board of Aldermen 05-24-2022 Page 5

Alderman-at-Large Lori Wilshire
AUTHORIZING THE MAYOR AND CITY TREASURER TO ISSUE BONDS NOT TO EXCEED THE AMOUNT OF
TWO MILLION AND FOUR HUNDRED FIFTY THOUSAND DOLLARS ($2,450,000) FOR WALNUT STREET
OVAL INTERSECTION PROJECT AND WEST PEARL STREET STREETSCAPING
Given its first reading; Assigned to the BUDGET REVIEW COMMITTEE, BOARD OF PUBLIC WORKS and SCHEDULE
A SPECIAL BOARD OF ALDERMEN PUBLIC HEARING AT 7:00 PM ON MONDAY, JUNE 27, 2022, by President
Wilshire

NEW BUSINESS — ORDINANCES

O0-22-018
Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman Alex Comeau
Alderman-at-Large Lori Wilshire
AMENDING ALDERMANIC JOINT COMMITTEES
Given its first reading; Assigned to the PERSONNEL/ADMINISTRATIVE AFFAIRS COMMITTEE by President Wilshire

PERIOD FOR GENERAL PUBLIG COMMENT

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Committee announcements:

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE MAY 24, 2022, MEETING OF THE BOARD OF ALDERMEN BE
ADJOURNED

MOTION CARRIED

The meeting was declared adjourned at 9:21 p.m.

Attest: Susan K. Lovering, City Clerk

Page Image
Board Of Aldermen - Minutes - 5/24/2022 - P5

Board Of Aldermen - Agenda - 5/24/2022 - P1

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Thu, 05/19/2022 - 14:38
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
1
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__052420…

AGENDA MEETING OF THE BOARD OF ALDERMEN MAY 24, 2022

7:30 PM Aldermanic Chamber and by Zoom

To Join Zoom meeting: https://usO2web.zoom.us/j/82870866730? pwd=YkdVa3FtUXg2RjJOW G16WIN4VnBQZz09
Meeting ID: 828 7086 6730 Passcode: 770834

To Join by Telephone: 1-929-205-6099
Meeting ID: 828 7086 6730 Passcode: 770834

If for some reason you cannot connect to Zoom, please contact us at (603) 589-3329 and they will help you with connectivity.
The public may also view the meeting via Channel! 16.

1. PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER
PRAYER OFFERED BY CITY CLERK SUSAN K. LOVERING
PLEDGE TO THE FLAG LED BY ALDERMAN ERNEST A. JETTE
ROLL CALL

REMARKS BY THE MAYOR

RESPONSE TO REMARKS OF THE MAYOR

RECOGNITIONS

on POP oO FF ODN

READING OF MINUTES OF PREVIOUS MEETINGS

Special Board of AIGErMen. 2.0.0.0... . cece cee cec eee eee eee c eee eee ce eee ee tees eeeeeeeeeeaeaeaeeeeaeaaens 04/11/2022
Board of Aldermen. .......... 2... 0cecccece cece cence ee cent ee eee eee e ene e tens esse ee eeeeeegeessieeeessnsses 04/12/2022

9. COMMUNICATIONS REQUIRING ONLY PROCEDURAL ACTIONS AND WRITTEN REPORTS
FROM LIAISONS

From: Matt Sullivan, Community Development Director

Re: Referral from the Board of Aldermen on proposed O-22-011 — Amending the Zoning Map by Rezoning Land
Situated North and South of Lake Street and West of Pine Street from Local Business (LB) to Local
Business with Mixed Use Overlay District (LB/MU)

From: Larry D. Goodhue, Chief Executive Officer of Pennichuck
Re: Pennichuck Corporation — Request for Approval to Renew and Extend its Line of Credit with TD Bank, N.A.

9(a). PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED UPON THIS EVENING
9(b). COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Jeffrey L. Snow, Superintendent of The Edgewood Cemetery

Re: Request for Joint Convention with The Edgewood

From: Mayor Jim Donchess

Re: Multi-Year Contract Award — Public Access Television Operations & Management
From: Mayor Jim Donchess

Re: Multi-Year Contract Award - Generator Maintenance for the Energy Recovery Facility
From: Mayor Jim Donchess

Re: Multi-Year Contract Award - Engineering Consulting at the Nashua Landfill

From: Mayor Jim Donchess

Re: Multi-Year Contract Award — Cybersecurity Software License & Maintenance

1

Page Image
Board Of Aldermen - Agenda - 5/24/2022 - P1

Finance Committee - Agenda - 5/18/2022 - P214

By dnadmin on Sun, 11/06/2022 - 21:42
Document Date
Wed, 05/18/2022 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 05/18/2022 - 00:00
Page Number
214
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__051820…

DocuSign Envelope ID: 6BE73965-BAEF-4791 -B930-DABA9714DC55

2.3.

2.4,

3.1.

4.1.

4.2.

4.3.

5.1.

‘@ DARKTRACE

Clause 9 and Clause 12 will not apply to Evaluations or Preview Products. APPLIANCES PROVIDED FOR THE PURPOSES OF
EVALUATION (“EVALUATION PRODUCTS”) AND PREVIEW PRODUCTS ARE PROVIDED “AS IS” AND, TO THE MAXIMUM EXTENT
PERMITTED BY APPLICABLE LAW: (i) DARKTRACE MAKES NO WARRANTIES, CONDITIONS, REPRESENTATIONS OR
UNDERTAKINGS OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE WITH RELATION TO SUCH
EVALUATION PRODUCTS OR PREVIEW PRODUCTS; AND (ii) IN NO EVENT SHALL DARKTRACE BE LIABLE TO CUSTOMER OR TO
THOSE CLAIMING THROUGH CUSTOMER FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGE OR
LOSS OF ANY KIND, OR ANY LOSS OF PROFITS, LOSS OF CONTRACTS, BUSINESS INTERRUPTIONS, LOSS OF OR CORRUPTION OF
INFORMATION OR DATA HOWEVER CAUSED AND WHETHER ARISING UNDER CONTRACT OR TORT (INCLUDING WITHOUT
LIMITATION NEGLIGENCE), EVEN IF DARKTRACE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

IF ANY LIMITATION, EXCLUSION, DISCLAIMER OR OTHER PROVISION CONTAINED IN CLAUSE 2.3 ABOVE IS HELD TO BE INVALID
FOR ANY REASON BY A COURT OF COMPETENT JURISDICTION AND DARKTRACE BECOMES LIABLE THEREBY FOR LOSS OR
DAMAGE THAT MAY LAWFULLY BE LIMITED, SUCH LIABILITY WHETHER IN CONTRACT, TORT OR OTHERWISE, SHALL NOT
EXCEED TEN THOUSAND POUNDS STERLING (£10,000).

OFFERING; ORDER PROCESS

Darktrace agrees to provide to Customer: (i) the number and type of Appliances; (ii) the Support Services; and (iii) the training
to be provided to Customer, if any, each as set out in the Product Order Form. The Product Order Form must be in writing and
reference this Agreement to be valid. The Product Order Form will be governed by this Agreement and any different or
additional terms presented with or in any communication, including but not limited to, Customer’s purchase order, are deemed
null and void and of no effect unless the additional terms are agreed upon by the Parties in writing prior to acceptance of that
Product Order Form.

HARDWARE

Hardware Products. Unless otherwise agreed in the Product Order Form, use of the Hardware is included in the Fees. The
Hardware is provided solely as the medium for delivery and operation of the Software, and must not be used for any other
purpose. Customer will be granted a licence to the Software on the terms of Clause 5 below.

Delivery. Darktrace will use commercially reasonable efforts to ship the Appliance(s) on the agreed delivery dates (in partial
or full shipments); provided, however, that Darktrace will in no event be liable for any delay in delivery or for failure to give
notice of delay. Darktrace may withhold or delay shipment of any order if Customer is late in payment or is otherwise in
default under this Agreement. Darktrace will deliver the Appliance FCA (Incoterms 2010) to the agreed Sites. In the absence
of specific shipping instructions from Customer, Darktrace will ship by the method of its choice. Unless otherwise agreed,
Customer will pay and be exclusively liable for all costs associated with shipping and delivery including without limitation,
freight, shipping, customs charges and expenses, cost of special packaging or handling and insurance premiums incurred by
Darktrace in connection with the shipment of the Appliance(s) to Customer. Darktrace will identify itself in all documents
related to the shipment of the Appliance(s) as the exporter of record from the applicable jurisdiction of export, and Customer
(or its agent, as applicable) as the importer of record into the country of delivery.

Title to Hardware. Title to the Hardware will remain with Darktrace for the entire Term. Upon termination for any reason,
or on expiration of the Term, Customer shall return the Hardware to Darktrace, securely and properly packaged, with carriage
(and insurance at Customer’s option) prepaid. Whilst the Hardware is in Customer’s possession, Customer must (a) clearly
designate the Hardware as Darktrace’s property; (b) hold the Hardware on a fiduciary basis as Darktrace’s bailee; (c) store
and use the Hardware in a proper manner in conditions which adequately protect and preserve the Hardware; (d) insure the
Hardware against all risks to its full replacement value; and (e) not sell, charge, pledge, mortgage or otherwise dispose of the
Hardware or any part of it or permit any lien to arise over the Hardware (or part thereof) and keep the Hardware free from
distress, execution and other legal process.

LICENCE GRANT FOR THE SOFTWARE AND RESTRICTIONS

Licence Grant for Software. In consideration of the Fees paid by Customer to Darktrace, and subject to the terms and
conditions of this Agreement and the Product Order Form, Darktrace grants to Customer a non-exclusive, non-transferable,
non-sublicensable licence for the Term to: (i) install and use the Appliance on the Site(s) or an Outsource Provider’s site(s) for
Customer’s or its Affiliate’s internal business purposes (provided that neither Customer nor its Affiliates may use the Appliance
or the Services as a commercial product or for the benefit of an unaffiliated third party); (ii) make a commercially reasonable
number of copies of the Documentation; provided however, that Customer must reproduce and include all of Darktrace's and
its suppliers' copyright notices and proprietary legends on each such copy;.

V09.12.2020 MCA SHRINKWRAP 2

Page Image
Finance Committee - Agenda - 5/18/2022 - P214

Board Of Aldermen - Agenda - 5/24/2022 - P2

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Thu, 05/19/2022 - 14:38
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
2
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__052420…

From: Tim Cummings, Economic Development Director
Re: ARPA Funding Framework

PETITIONS

NOMINATIONS, APPOINTMENTS AND ELECTIONS

Appointments by the Mayor

REPORTS OF COMMITTEE
Task FOrce....... 02.0: cccccceeceee cence eee ee eee ce ee eens eens ea eee ese eeeeeeseeeeeeeeeseesesersneees 03/30/2022, 03/31/2022
Joint Meeting — Committee on Infrastructure and Planning & Economic

Development Committee...............cccccccceee cece cee eee cease eeeeeeeeeeeeaeeeeeeeas 03/30/2022, 03/31/2022
Special Budget Review Commiittee............. 02.0: ccc ccceeeeceeeeceeeeeeeeeeeseeeneeeeaes 04/11/2022

10. CONFIRMATION OF MAYOR’S APPOINTMENTS

UNFINISHED BUSINESS — RESOLUTIONS

R-22-032
Endorsers: Mayor Jim Donchess

Alderman Richard A. Dowd
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman John Sullivan
Alderman Patricia Klee
Alderman-at-Large Melbourne Moran, Jr.
Alderman Thomas Lopez
Alderman Alex Comeau
Alderman Derek Thibeault
Alderman-at-Large Lori Wilshire

APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN THE NASHUA BOARD

OF EDUCATION AND THE NASHUA TEACHERS’ UNION, LOCAL 1044, AFT, AFL-CIO, UNIT D, FOOD SERVICE

WORKERS FROM SEPTEMBER 1, 2021 THROUGH AUGUST 31, 2024

e Budget Review Committee with anticipated recommendation for final passage

UNFINISHED BUSINESS — ORDINANCES

O-22-011
Endorsers: Alderman Alex Comeau

Alderman-at-Large Michael B. O’Brien, Sr.
Alderman John Sullivan
Alderman-at-Large Melbourne Moran, Jr.
Alderman-at-Large Ben Clemons
Alderman Tyler Gouveia
Alderman John Cathey

AMENDING THE ZONING MAP BY REZONING LAND SITUATED NORTH AND SOUTH OF LAKE STREET AND

WEST OF PINE STREET FROM LOCAL BUSINESS (LB) TO LOCAL BUSINESS WITH MIXED USE OVERLAY

DISTRICT (LB/MU)

e Planning and Economic Development Committee with recommendation for final passage

NEW BUSINESS — RESOLUTIONS

R-22-036
Endorser: Alderman Patricia Klee
AUTHORIZING PENNICHUCK CORPORATION TO RENEW AND EXTEND ITS LINE OF CREDIT WITH TD BANK,
N.A.

R-22-037
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE OF $1,031,630 FROM THE STATE OF NEW HAMPSHIRE DEPARTMENT OF
HEALTH AND HUMAN SERVICES INTO VARIOUS PUBLIC HEALTH AND COMMUNITY SERVICES GRANT
ACTIVITIES

Page Image
Board Of Aldermen - Agenda - 5/24/2022 - P2

Board Of Aldermen - Agenda - 5/24/2022 - P3

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Thu, 05/19/2022 - 14:38
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
3
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__052420…

R-22-038
Endorser: Mayor Jim Donchess
AUTHORIZING THE MAYOR AND CITY TREASURER TO ISSUE BONDS NOT TO EXCEED THE AMOUNT OF TWO
MILLION AND FOUR HUNDRED FIFTY THOUSAND DOLLARS ($2,450,000) FOR WALNUT STREET OVAL
INTERSECTION PROJECT AND WEST PEARL STREET STREETSCAPING

NEW BUSINESS — ORDINANCES

O0-22-018
Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
AMENDING ALDERMANIC JOINT COMMITTEES

PERIOD FOR GENERAL PUBLIC COMMENT

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN

Committee announcements:

ADJOURNMENT

Page Image
Board Of Aldermen - Agenda - 5/24/2022 - P3

Board Of Aldermen - Agenda - 5/24/2022 - P4

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Thu, 05/19/2022 - 14:38
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
4
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__052420…

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Page Image
Board Of Aldermen - Agenda - 5/24/2022 - P4

Board Of Aldermen - Agenda - 5/24/2022 - P5

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Thu, 05/19/2022 - 14:38
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
5
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__052420…

V2 PENNICHUCK?®

25 WALNUT STREET
PO BOX 428
NASHUA, NH 03061-0428

(603) 882-5191

FAX (603) 913-2305

WWW.PENNICHUCK.COM
VIA EMAIL
May 6, 2022

Mr. Steven A. Bolton
Corporation Counsel
City of Nashua

229 Main Street
Nashua, NH 03060

Re: Pennichuck Corporation — Request for Approval to Renew and Extend its
Line of Credit with TD Bank, N.A.

Dear Attorney Bolton:

Introduction. As you know, the City of Nashua, New Hampshire (the “City”) is the sole
corporate shareholder of Pennichuck Corporation (“Pennichuck” or the “Company”). The City
has been the sole shareholder since the acquisition of Pennichuck on January 25, 2012.

The purpose for this letter is to request that the City, acting in its capacity as sole shareholder,
approve resolutions authorizing Pennichuck Corporation to renew its current $4 million working
capital line of credit which expires June 30, 2022, with a new two-year term, but reviewable
annually for renewal and extension, with terms and conditions as included in the term sheet, attached
as Attachment A (to be treated as Confidential Information for Board of Aldermen usage only).

Background. As part of the City’s acquisition of Pennichuck, in accordance with special
legislation enacted by the State Legislature, and as unanimously approved by the Mayor and Board
of Aldermen on January | 1, 2011, the corporate structure of Pennichuck and its utility subsidiaries
was retained. This corporate structure was retained for several reasons. First, the Mayor and
Board of Aldermen desired to maintain stability and continuity for customers and employees of the
Pennichuck utilities and the communities they serve. Second, retaining the corporate structure
provided continuity for the existing relationships with regulatory agencies and financial/banking
partners. Third, the Mayor and Board of Aldermen unanimously agreed that the corporate
structure would encourage business-smart decisions and rely upon well-established governance
principles of corporate law, pursuant to Pennichuck’s Articles of Incorporation and its by-laws.

Shareholder Approval of Borrowings Required. Under Article IX of Pennichuck’s Articles of
Incorporation, the City, acting in its capacity as Pennichuck’s sole shareholder, must approve:

Page Image
Board Of Aldermen - Agenda - 5/24/2022 - P5

Board Of Aldermen - Agenda - 5/24/2022 - P6

By dnadmin on Mon, 11/07/2022 - 07:42
Document Date
Thu, 05/19/2022 - 14:38
Meeting Description
Board Of Aldermen
Document Type
Agenda
Meeting Date
Tue, 05/24/2022 - 00:00
Page Number
6
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/boa_a__052420…

-2-

“(3) any action to (A) create, incur or assume any indebtedness for borrowed money
or guarantee any such indebtedness of any person, (B) issue or sell any debt
securities or warrants or other rights to acquire any debt securities of the
[Pennichuck] Corporation or any of its Subsidiaries, or (C) guarantee any debt
securities of any person.”

Pennichuck Corporation Line of Credit. Pennichuck requests the City’s approval to renew and
extend its existing Line of Credit which will expire on June 30, 2022, with a new two-year Line
of Credit, at the current limit of $4 million. This line of credit facility will continue to be used for
working capital purposes only. In conjunction with this, and in conformity with the approved
modified rate methodology for Pennichuck Water Works, Inc. (PWW) under NHPUC docket

DW 16-806 and DW 19-084, and the approved modified rate methodology for Pennichuck East
Utility, Inc. (PEU) under NHPUC docket DW 17-128 and DW 20-156, fixed asset line of credit
(FALOC) borrowings will be facilitated at those subsidiary companies, which will be repaid
annually in their entirety with term loans and/or annual bond issuances. This extension of the
current W/C Line of Credit will extend this facility to a new maturity date of June 30, 2024.

Terms of the Line of Credit Borrowings. The replacement Line of Credit facility will include
the following terms:

* Term: The proposed Line of Credit will expire as of June 30, 2024 and is
reviewable annually for renewal and extension by the Bank.

* Interest Rate: Loans under the Line of Credit will bear interest at an annual rate
equal to the | Month Term SOFR plus 1.75%.

* Renewal Fee: The Line of Credit will charge a renewal fee of $4,000.

¢ Financial Covenants: The financial covenants that the Company must meet are
consistent with those under the Integrated Capital Finance Plan covenants at
PWW, as outlined as covenants 3 through 7 on the attached term sheet.
Additionally, the Company’s PWW subsidiary must maintain a S&P bond rating
of at least BBB+ (currently PWW is rated as an A+ stable credit by S&P), and an
annual “‘out of debt” requirement is included, which requires the Company to
fully pay off any Line of Credit balance for at least 30 consecutive days during
each fiscal year.

* Subordination: Consistent with the current line of credit, the Company’s
obligations to the City under its existing Senior Unsecured Note.

* Security: As currently exists, the Line of Credit will be secured by: the pledge of
stock of the subsidiary companies of Pennichuck Corporation (as is already in
place with the current expiring Line of Credit), as well as a pledge of the accounts
receivable and inventory of those subsidiaries, and additionally, the assignment of
the rights under the Money Pool Agreement and Cost Sharing Agreement, as
approved by the NHPUC for the regulated utilities of the Company.

* Dividends: The Line of Credit will restrict payment of dividends to the City (the
Company’s sole shareholder) only to those required to allow the City to meet its
obligations under the general obligation bonds issued to acquire the Company,
plus $500,000 in any year.

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Board Of Aldermen - Agenda - 5/24/2022 - P6

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