Search

AGENDA MEETING OF THE BOARD OF ALDERMEN JUNE 9, 2020

Meeting is being conducted remotely in accordance with Governor's Emergency Order #12 pursuant to Executive
Order 2020-04

Call in Number: 978-990-5298 Access Code: 273974

If anybody has a problem accessing the meeting via phone or Channel 16, please call 603-821-2049 and they will
help you connect.

1.

2.

Q(a).

PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER
PRAYER OFFERED BY CITY CLERK SUSAN K. LOVERING
PLEDGE TO THE FLAG LED BY ALDERMAN DAVID C. TENCZA
ROLL CALL

REMARKS BY THE MAYOR

RESPONSE TO REMARKS OF THE MAYOR

RECOGNITIONS

READING OF MINUTES OF PREVIOUS MEETINGS

Special Board of Aldermen......... 0... cccccee ccc ceneee eee eeeeecueseeteeaseeersnaaeeecneae sees 05/21/2020
Board of AIM@rmen...... 0... ce ccc cee cee cee ee eee nee eae cee eee een eae sees ee seen ener eee nee ten eneagegss 05/26/2020
Special Board of AIGErMen..............ccccccescscseceeeeeeeeeee se seeeeeserdteese ens sueges enea 05/27/2020

COMMUNICATIONS REQUIRING ONLY PROCEDURAL ACTIONS AND WRITTEN REPORTS
FROM LIAISONS

From: Len Fournier, Superintendent Woodlawn/Pinewood Cemeteries
Re: Requesting Joint Convention Meeting with the Woodlawn/Pinewood Cemetery Trustees

From: Linda McGhee, Deputy Planning Manager

Re: Referral from the Board of Aldermen on proposed O-20-014, allowing the temporary adjustment
of site plans by the Community Development Director or Designee to allow for greater outdoor
seating at restaurants

From: John L. Griffin, Chief Financial Officer/Comptroller
Re: Fire Union [AFF Local #789 Collective Bargaining Agreement

From: Dorothy Clarke, Esquire

Re: R-20-043 “Authorizing Pennichuck Corporation and Pennichuck East Utility, Inc. to enter into a
term loan and renew a fixed asset line of credit with CoBank, ACB” — letter from Pennichuck
without confidential financial documents

From: Donna Graham, Legislative Affairs Manager
Re: Communications Received from the Public

PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED UPON

THIS EVENING

9(b).

10,

11.

Keeping in mind the health and safety of our residents and employees, we are requesting that if
you wish to speak on agenda items, you submit your comments to include your name and address
via e-mail which will be accepted and placed on file with the minutes of the meeting. Please e-mail

your comments to: BOA@nashuanh.gov
COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Justin Kates, Director of Emergency Management
Re: Approving the 2019-2020 Memorandum of Understanding between Goodwill Industries of Northern

New England’s Goodwill VISTA Partnership and the City of Nashua

PETITIONS
NOMINATIONS, APPOINTMENTS AND ELECTIONS

Joint Convention with Trustees of Woodlawn/Pinewcod Cemeteries

REPORTS OF COMMITTEE

Finance Committee... 00.0.0. occ ccc ccc ccc cc cece ccc ceccecceeceecceceeteeseccveueecseeeeenres 05/21/2020

Joint Meeting — Committee on Infrastructure and Planning and Economic

Development Committee... beeen ee eee nee sane ee eee eeeaenee eae aeseeeaeaeneeens 05/27/2020
Personnel/Administrative Affairs Committee. Leek eee ee nee eee bed eee tas bed bee tae cae edness 06/01/2020
Budget Review Committee... 0.0... cece ccc cc eee eee cee sseseeeeeaee tenses ersgeeeaeeees 06/02/2020
Finance Committee... 0.00.0. cc cee cec eee cee nee eee eae cence ene ee ene eneneenes 06/03/2020

CONFIRMATION OF MAYOR'S APPOINTMENTS

Electric Aggregation Committee

Robert Blaisdell (New Member Appoiniment) Term to Expire: May 31, 2023

24 Railroad Square
Nashua, NH 03064-2278

Lawrence Lutton (New Member Appointmeni) Term to Expire: May 31, 2023

47 Concord Street
Nashua, NH 03064

UNFINISHED BUSINESS ~ RESOLUTIONS

R-20-033

Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien
Alderman Patricia Kiee
Alderman Richard A. Dowd
Alderman Linda Harriott-Gathright
Alderman Skip Cleaver
Alderman-at-Large Lori Wilshire

AUTHORIZING THE MAYOR TO EXECUTE A CONFIRMATORY DEED TO PENNICHUCK WATER

WORKS
° Budget Review Committee Recommends: Final Passage

R-20-039

Endorsers: Alderman-at-Large Lori Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman-at-Large David C. Tencza
Alderman Richard A. Dowd
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK WATER WORKS, INC. TO ISSUE

TAXABLE BONDS OF UP TO $75,000,000

* Budget Review Committee Recommends: Re-assigning to Pennichuck Special Water Committee

UNFINISHED BUSINESS — ORDINANCES

0-20-014, Amended

Endorsers: Mayor Jim Donchess
Alderman-at-Large Benjamin Clemons
Alderman-at-Large Lori Wilshire
Alderman-ai-Large Shoshanna Kelly
Alderman Jan Schmict
Alderman Patricia Klee
Alderman Thomas Lopez
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd

RELATIVE TO TEMPORARY AJUSTMENT TO SITE PLANS

e« Budget Review Committee Recommends: Final Passage as amended

O0-20-017
Endorser: Alderwoman-at-Large Shoshanna Kelly
AUTHORIZING FREE PARKING AT METERS AND PAY STATION SPACES THROUGH NOVEMBER 15,
2020
(tabled at BOA May 21, 2020 mtg)

NEW BUSINESS —- RESOLUTIONS

R-20-042
Endorser. Alderman-at-Large David C. Tencza
APPROVING THE COST ITEMS OF A SIDEBAR AGREEMENT BETWEEN THE NASHUA BOARD OF
FIRE COMMISSIONERS AND THE NASHUA FIREFIGHTERS ASSOCIATION |A.F.F. LOCAL 789
REGARDING VACATION ACCRUAL

R-20-043
Endorser: Alderman-at-Large Lori Wilshire
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK EAST UTILITY, INC. TO ENTER
INTO A TERM LOAN AND RENEW A FIXED ASSET LINE OF CREDIT WITH COBANK, ACB

R-20-044
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF AN ADDITIONAL $377,873.50 FROM
THE STATE OF NEW HAMPSHIRE, DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO
TRANSIT GRANT ACTIVITY “FEDERAL TRANSIT AUTHORITY (“FTA”) OPERATING GRANT”

R-20-045
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $190,000 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES CARES ACT FUNDING INTO
PUBLIC HEALTH AND COMMUNITY SERVICES GRANT ACTIVITY “FY2020 PUBLIC HEALTH CRISIS

RESPONSE”

R-20-046
Endorser. Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $159,460 FROM THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CARES ACT FUNDING INTO PUBLIC
HEALTH AND COMMUNITY SERVICES GRANT ACTIVITY “HOUSING OPPORTUNITIES FOR

PERSONS WITH AIDS (“HOPWA”)”

R-20-047
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $162,000 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO PUBLIC HEALTH AND
COMMUNITY SERVICES GRANT ACTIVITIES “FY21 AND FY22 HIV PREVENTION GRANT”

R-20-048
Endorser. Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $99,000 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO PUBLIC HEALTH AND
COMMUNITY SERVICES GRANT ACTIVITIES “FY21 AND FY22 STD PREVENTION GRANT”

R-20-049
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $97,500 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO PUBLIC HEALTH AND
COMMUNITY SERVICES GRANT ACTIVITIES “FY21 AND FY22 IMMUNIZATION PROGRAM OF
GREATER NASHUA”

R-20-050
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $52,500 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO PUBLIC HEALTH AND
COMMUNITY SERVICES GRANT ACTIVITIES “FY21 AND FY22 TUBERCULOSIS PROGRAM OF
GREATER NASHUA”

R-20-051
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $45,000 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO PUBLIC HEALTH AND
COMMUNITY SERVICES GRANT ACTIVITIES “FY21 AND FY22 HEALTHY HOMES AND LEAD
POISONING CASE MANAGEMENT”

NEW BUSINESS — ORDINANCES

0-20-020
Endorser: Mayor Jim Donchess
RELATIVE TO PERSONAL DAYS FOR UNAFFILIATED EMPLOYEES IN THE PUBLIC HEALTH AND
COMMUNITY SERVICES DIVISION

0-20-021
Endorser. Alderman Richard A. Dowd
AUTHORIZING A STOP SIGN ON LEE STREET AT ITS INTERSECTION WITH FOREST STREET

O-20-023
Endorser: Aiderman Ben Clemons
Alderman Patricia Klee
Alderman Michael B. O'Brien, Sr.
RELATIVE TO ADVERTISING SIGNAGE ON UMBRELLAS, AWNINGS, AND CANOPIES IN
CONNECTION WITH OUTDOOR DINING

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

ADJOURNMENT

Chairman Len Fournier - Superintendent Vice Chairman

NILES F, JENSEN JR. Mayor JIM DONCHESS - Ex-Officio DANIEL A. BUSLOVICH
Secretary 101 Kinsley Street Treasurer
BARBARA A. WHITMORE Nashua, New Hampshire 03060 DAVID G. FREDETTE

Phone: (603) 594-3354 Fax: (603) 594-3418

March 10, 2020

Nashua Board of Alderman
Attn: Donna L. Graham
City Hall

Nashua, NH 03060

Dear Donna,

Would you please schedule a Joint Convention with the Alderman to re-nominate Mark
Coulombe and Todd Whitney to new five year terms as Trustees of Woodlawn/Pinewood
Cemeteries.

Thank You,

Len Fournier

Superintendent

Woodlawn/Pinewood Cemeteries

CC: Niles Jensen, Chairmen of Trustees

Incorporated 1895

City of Nashua

Planning Department
229 Main Street
Nashua, New Hampshire 03061-2019

Planning & Zoning 603 589-3090
WEB www. nashuanh.gov

MEMORANDUM

Date: May 29, 2020

To: Ald. Lori Wilshire, President, and Board of Aldermen
Ald. David Tenceza, Chair and Planning & Economic Development
Committee
Ald. Michael B. O’Brien, Sr., Chair and Committee of Infrastrcture

From: Linda McGhee, Deputy Planning Manager

RE: Referral from the Board of Aldermen on proposed O-20-014, allowing the
temporary adjustment of site plans by the Community Development Director or
Designee to allow for greater outdoor seating at restaurants.

At the Nashua City Planning Board's regularly scheduled meeting of May 28, 2020
the Planning Board voted unanimously to make a favorable recommendation on O-
20-014, with the change that “No” fee shall be charged in the first paragraph.

If you have any questions concerning this notification, please contact me at 589-
3110.

cc: Mayor Jim Donchess
Donna Graham, Legislative Assistant
Susan Lovering, City Clerk
scott LeClair, Chair, NPCB
Sarah Marchant, Community Development Director

athe

THE CITY OF NASHUA

"The Gate City"

Financial Services Division

Office of the Chief Financial Officer
TO: President Lori Wilshire

Members of the Board of Aldermen

ce: Mayor Jim Donchess
FROM: John L. Griffin, Chief Financial Officer/Comptroller
DATE: June 2, 2020
RE: Fire Union [AFF Local #789 Collective Bargaining Agreement

The purpose of this communication is to provide a bit more detail regarding concerns that have
been raised about the affordability of the recently submitted collective bargaining agreement
between the City and the Nashua Fire Rescue [AFF Local #789 unit.

The Total Base Pay and Other Salary Costs on line 26 of the Cost Analysis shows that total
salary costs called for in the contract would rise 17.3% by July 1, 2022 (the start of FY23).
These costs would rise 4.2% in FY20, 3.8% in FY21, 4.2% in FY22 and 4.1% in FY 23. At the
end of the contract period, the base pay and other salary costs would increase from $15.0 million
to $17.6 million ($17.3%). The 3.5% increases in base pay for the four years of the contract do
not account for the complete increases in salaries.

Pension and Benefits costs are anticipated to rise from a base of $7.9 million in FY2019 to
approximately $9.4 million in FY2023, an increase of $1.5 million (18.1%) in these cost items.

On an average employee basis, the sum of these costs, also referred to in the analysis as the Total
Compensation Package, will increase from $134,916 in FY2019 to $158,601 in FY2023, an
increase of $23,685 (17.6%).

229 Main Street « Nashua, New Hampshire 03060 « Phone (603) 589-3173 « Fax (603)
589-3168

Steven A. Bolton
Corporation Counsel
BoltonS@nashuanh.gov

Dorothy Clarke
Deputy Corporation Counsel
ClarkeD@nashuanh.gov

Celia K. Leonard
Deputy Corporation Counsel
LeonardC@nashuanh.gov

CITY OF NASHUA
OFFICE OF CORPORATION
COUNSEL

FIRST MEMORANDUM

229 Main Street
P.O. Box 2019
Nashua, NH 03061-2019

T: (603) 589-3250
F: (603) 389-3259

Legai@nashuanh.gov

TO: Board of Aldermen

FROM: Office of Corporation Counsel
Dorothy Clarke, Esquire’| yy]

DATE: — June 3, 2020

RE: R-20-043 “Authorizing Pennichuck Corporation and Pennichuck East Utility, Inc. to
enter into a term loan and renew a fixed asset line of credit with CoBank, ACB” —

letter from Pennichuck without confidential financial documents

Attached please find a letter from Pennichuck with supporting information for Resolution

R-20-043 “Authorizing Pennichuck Corporation and Pennichuck East Utility, Inc. to enter into a

term loan and renew a fixed asset line of credit with CoBank, ACB”.

Please note that the letter references Attachment B-1, which is a confidential term sheet

for the term loan with CoBank, ACB, and Attachment B-2, which is a confidential term sheet for

the fixed asset line of credit renewal with CoBank, ACB. Those two attachments are not

included in the document attached to this memo. Those two documents, which are confidential

financial documents, will be provided to the Board separately.

VIA ELECTRONIC DELIVERY

May 22, 2020

Mr. Steven A. Bolton
Corporation Counsel
City of Nashua

229 Main Street
Nashua, NH 03060

Re: Pennichuck East Utility, Inc. — Request for Approval of Term Loan and renewal of Fixed
Asset Line of Credit with CoBank, ACB

Dear Attorney Bolton:

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

The purpose of this letter is to request that the City, acting in its capacity as sole shareholder,
approve resolutions authorizing Pennichuck’s regulated public water utility subsidiary,
Pennichuck East Utility, Inc. (““PEU”), to enter into a term loan with CoBank, ACB (“CoBank”).

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 11, 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.

-2-

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:

“(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.”

Proposed Term Loan Borrowing and FALOC extension/renewal from CoBank

PEU is a New Hampshire public utility corporation providing retail water service to
approximately 8,300 customers in the New Hampshire towns of Atkinson, Barnstead, Bow,
Chester, Conway. Derry, Exeter, Hooksett, Lee, Litchfield, Londonderry, Middleton, Pelham,
Plaistow, Raymond, Sandown, Tilton, Weare and Windham. PEU is wholly-owned by
Pennichuck which, in turn, is wholly-owned by the City.

PEU has entered into a Master Loan Agreement with CoBank dated as of February 9, 2010 (the
“Master Loan Agreement”), which provides the framework for CoBank to make loans to PEU from
time to time. A copy of the Master Loan Agreement is attached to this letter as Attachment A.

PEU requests the City’s approval for PEU to enter into a term loan with CoBank in an amount of
$803,275 with an amortization period of up to 25 years, with an interest rate to be determined
based on market conditions (currently estimated at approximately 4.3% per annum). A copy of
the CONFIDENTIAL term sheet for the term loan with CoBank is attached to this letter as
Attachment B-1.

The proceeds from the CoBank loan will be used to refinance and repay up to approximately
$803,275 of Fixed Asset Line of Credit (“FALOC”) borrowings by PEU, under its $3 million
FALOC with CoBank, which was used to fund capital improvements to the PEU water system
infrastructure during 2019, which were not funded by State of New Hampshire Drinking Water
Revolving Loan Fund (SRF) or NH Drinking Water and Groundwater debt or grants.

The FALOC with CoBank was approved by the Company's Board of Directors, the NH Public
Utilities Commission (“NHPUC”), and the City of Nashua as shareholder, in March of 2018 (in
NHPUC Order No. 26,117; Docket PWC 17-157), to provide for capital improvements financing
during each calendar year, with subsequent annual refinancing and repayment of amounts
borrowed with term loans, consistent with the Company’s allowed rate structure with the
NHPUC, under Order No. 26,179 (Docket DW 17-128).

With this request, the Company is also requesting approval to renew and extend the FALOC with
CoBank for a period of three years, past the current expiration date of the facility as of
September 30, 2020. A copy of the CONFIDENTIAL term sheet for the FALOC renewal with
CoBank is attached to this letter as Attachment B-2.

The CoBank loan will be secured by (i) a security interest in PEU*s equity interest in CoBank
(consisting of PEU’s $181,781 eared equity investment in CoBank from patronage dividends
received since 2010, and PEU’s right to receive future patronage dividends), and (11) the