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APPOINTMENTS BY THE MAYOR

Business & Industrial Development Authority

Deborah Novotny (New Appointment)
65 McKenna Drive
Nashua, NH 03062

Cultural Connections Committee

Dominque Boutaud (New Appointment)
91 Bartemus Trail
Nashua, NH 03063

Nashua Airport Authority

Farrelll T. Woods (Reappointment)
162 Bush Hill Road
Hudson, NH 03061

Sandra Cushing Adams (Reappointment)
5 Scarborough Drive
Nashua NH 03063

Planning Board

Daniel Kelly (Reappointment)
9 Lilac Court
Nashua, NH 03062

| respectfully request that these appointments be confirmed.

SEPTEMBER 12, 2017

Term to Expire:

Term to Expire:

Term to Expire:

Term to Expire:

Term to Expire:

Jim Donchess
Mayor

September 30, 2018

September 30, 2020

August 31, 2022

August 31, 2018

March 31, 2020

A special meeting of the Board of Aldermen was held Tuesday, August 8, 2017, at 7:01 p.m. in the
Aldermanic Chamber.

President Brian S. McCarthy presided; City Clerk Patricia D. Piecuch recorded.

Prayer was offered by City Clerk Patricia D. Piecuch; Alderman-at-Large Mark S. Cookson led in the
Pledge to the Flag.

The roll call was taken with 13 members of the Board of Aldermen present; Alderman Clemons and
Alderwoman Melizzi-Golja were recorded absent.

Mayor James W. Donchess and Corporation Counsel Steven A. Bolton were also in attendance.
COMMUNICATIONS

MOTION BY ALDERMAN WILSHIRE THAT ALL COMMUNICATIONS BE READ BY TITLE ONLY
MOTION CARRIED

From: Brian S. McCarthy, President, Board of Aldermen
Re: Special Board of Aldermen Meeting

MOTION BY ALDERMAN WILSHIRE TO ACCEPT AND PLACE ON FILE
MOTION CARRIED

DISCUSSION

Discussion with Charles McIntyre, Director of the New Hampshire Lottery Commission regarding the keno
component of Senate Bill 191.

Director McIntyre

Good evening, and thank you for allowing me to attend. What you have before you is two different handouts.
One is a very basic description of how keno works, and one is a FAQ for would-be retailers from the State of
New Hampshire which runs through all the questions you may or may not have as to how the game operates.

In my past life, | was the Assistant Director of the Massachusetts Lottery. Before that | was an organized crime
prosecutor. | joke | went from discouraging bookies to becoming one. One of our jobs in Massachusetts was
to raise revenue. What we found was is about 2 % percent of all keno sales in Massachusetts are New
Hampshire residents focused on the borders. Five of the largest keno retailers in the world are on the borders
of New Hampshire and Massachusetts in Massachusetts, 3 actually form part of the border. In some cases the
parking is in New Hampshire and the building is in Massachusetts. VWWhat we found was we were selling a lot of
tickets to people from New Hampshire. | became the director of New Hampshire seven years ago. | moved
my family up here, my wife and two sons.

It was a good topic for a long time in Concord. They asked me about the math and numbers. The amount of
keno being spent in a location is very low. Its $5 - $10 is the most likely being spent. What is more likely is
people actually having a sandwich and a beer, spending more money in that respect. We found it actually
increases the overall spend of the location more than it does keno sales. This senate bill went 3 or 4 times
through and this latest version has the highest commission rate for stores in the US. There is no cost for
materials for the bars in question. The legislature wanted to make sure each jurisdiction that might have it or
has locations which are eligible which are pouring establishments only — no convenience stores, no
supermarkets — only those locations that actually pour liquor or spirits — beer and wine — and within the location
where those poured establishments pour. For example, Chili’s has a separate bar area. It would be only in the
bar, not in the restaurant. Those jurisdictions would have the ability of the vote of the citizens to approve or not
approve it, which is consistent with three years ago when the lottery was approved. It had to be voted on by
every city and town in New Hampshire. In fact there are still ten that have never authorized lottery sales for

Special Bd. of Aldermen — 08/08/17 Page 2

their stores. | ask that you consider as the legislative body SB191 to put the question to the voters on your
November election. With that, Mr. President, I’d be happy to answer any questions.

President McCarthy

| have just an observation to start with. There’s a background check required for the person operating the
keno establishment, who also has to have a liquor license. Does that imply that we don’t background check
people to get a liquor license?

Director McIntyre

No. It doesn't. It’s clearly duplication. In lots of cases that’s the case.

President McCarthy

We have a resolution on our agenda this evening for a first reading to put the ballot question on. | think the
reason we wanted to get that moving is, as | understand it, we can only put the question on the ballot on our
city election this November. If we didn’t do that, we couldn’t do it until 2 % years from now on the next one.

Director McIntyre

Yes. It’s good news, bad news. Yes, you would wait two years but if you go now, all the jurisdictions around
you have to wait until the spring town elections. Your businesses benefit from the traffic. Our hope is the
benefit to this to support the children in kindergarten and help you folks pay for full day kindergarten. It’s a four
hundred and some odd thousand dollars of new money that will come to Nashua which is obviously a great
benefit. It’s an additional product to sell where a town right near you already does sell, and retail behavior
knows no geography.

Alderman O’Brien

I’m very pleased to see the sellers will be able to get the largest percent. | see it’s all going to come back to
Nashua as a grant of $1,100 per kindergarten pupil. That’s fantastic. Do we get any additional monies from
the sale of kenos or is it going strictly to kindergarten fund?

Director McIntyre

The Constitution, Article 6B, all lottery funds have to go to the education trust fund. The education trust fund is
no longer funded by us. We're a part of it, but not the whole funding of it. It just goes to that and then it is
distributed by the formula by the legislature, how they suggest it every two years.

Alderman O’Brien

If a community chooses not to have keno, do they get any kindergarten funding out of this?

Director McIntyre

They would. | would submit the benefits aren’t just to kindergarten funding. Its other things. If enough
jurisdictions say that, my fear is they are going to rethink that formula because it was certainly a topic of
conversation with the law was passed. The belief is lots of towns would take this, particularly the ones that you
can drive the across the border to Mass. There’s New Hampshire plates in that parking lot who play keno. So,
the short answer is yes, but | think that would be shortsighted.

Special Bd. of Aldermen — 08/08/17 Page 3

Alderman Siegel

You think it would be shortsighted but, for example, a lot of the smaller municipalities might look at Nashua and
say Nashua will adopt this. They are big town so we'll ride on their coattails without having to approve keno.

Director McIntyre

I’m considered an expert in gaming on any many respects, so | don’t view keno on a good/bad question. If |
put keno up on this room, | virtually guarantee half of you wouldn’t even notice it was in the room. | guarantee
you also that things happen that are far worse than the television monitor in the corner. The premise of the
question, | don’t agree with that keno is a problem, negative or positive.

Alderman Siegel

| apologize for the...

Director McIntyre

Oh no, no worries there. Everybody jokes | went from being a prosecutor where a large portion of my job was
prosecuting gambling and then | ran the state lottery. I’ve never had a problem with it. Most of the time what |
found is no jurisdiction that has approved it has gone back on it, in Massachusetts anyway.

Mayor Donchess

Thank you for coming. When you started, you said some amount is going over the border. | missed what
those numbers are.

Director McIntyre

It’s about $920 million annually is bet in Massachusetts on keno. About 2 % percent of that is played by New
Hampshire citizens in Massachusetts annually. It’s not quite $25 million annually. They are play low dollar
value, $5 - $10 is the daily average wager amount, but they are also doing other stuff. They are buying
sandwiches, they are buying food, they are buying beer.

Mayor Donchess

If Keno were widely adopted in New Hampshire, how much do you think the educational trust fund would
realize from the keno sales?

Director Mcintyre
If it were Mass numbers, you would be looking about $30 million profitability. | would imagine you would max

out around $17 - $18 million annually. Our current estimates are for only about $9 million. If we do it wrong,
we get ten. If we get right, we should see around 12 — 15.

President McCarthy

$25 million from New Hampshire is going to Mass keno.

Director McIntyre

That’s gross dollars. About 70 percent goes to the player. It really benefits the bar owner. Most of the prices
are low dollar wins. He wins $100 in a bar or a tavern or a restaurant and then orders an extra appetizers.

Special Bd. of Aldermen — 08/08/17 Page 4
The bartender gets tipped heavy. Seventy percent goes to the player as prize money, 8 cents goes to the
tavern for hosting it. It costs us about 2 % - 3 cents to run it. One cent goes to compulsive gambling. The rest
is profit.

Alderman Moriarty

Has keno been shown to reduce the other lottery sales?

Director McIntyre

No. This is entirely additive. If we are successful in having this adopted, we will go from 1250 stores to 1500.
So, no. Not atall. I’m also happy to come back.

Alderman Schoneman

Just so the folks at home are clear, what’s the overall process for this to get onto the ballot? There’s also
public hearings.

President McCarthy

As | understand it, and this is a complex process like no other because of the way the legislation was written,
we have a resolution in front of us which will go through the normal process of going to the Personnel
Committee. If we want to put the question on the ballot in November, we have to approve it at our first meeting
in September because of the timeline to print the ballots. If that passes and we decide to put it on the ballot
then | believe we are required to hold a public hearing within 15 days of the election to get feedback on the
actual question of adopting keno.

Attorney Bolton

It's between 30 and 15 days before the election.

President McCarthy

Yes. So sometime in October we will have to hold a public hearing. We would, of course, accept public input
at the committee meeting where it is discussed beforehand.

Alderman Cookson

The public hearing being done between 15 and 30 days prior to the election. The ballots will have already
been printed at that point?

President McCarthy

Correct.

Alderman Cookson

So regardless of what input is provided at that public hearing, it will still be on the ballot.

President McCarthy

Yes. It’s a question for the voters. The process that they used is very similar to the town legislative process
and does not | believe takes the city form of government correctly into account because normally this would be

Special Bd. of Aldermen — 08/08/17 Page 5

left to the legislative body, which is the town meeting in the towns and this body in the cities, but we are doing
something by referendum instead.

Alderman Moriarty

To put a question on the ballot, does it require ten votes?

President McCarthy

| think it requires eight.

Attorney Bolton

A majority of those present and voting.

ADJOURNMENT

MOTION BY ALDERMAN WILSHIRE TO ADJOURN
MOTION CARRIED

The meeting was declared adjourned at 7:19 p.m.

Attest: Patricia D. Piecuch, City Clerk

Board of Aldermen — 8/8/17 Page 6

R-17-108
Endorsers: Mayor Jim Donchess
Alderman Richard A. Dowd
Alderman June M. Caron
Alderman-at-Large Michael B. O’Brien, Sr.
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF AN ADDITIONAL $97,923.28
FROM THE STATE OF NEW HAMPSHIRE, DEPARTMENT OF TRANSPORTATION INTO
GRANT ACTIVITY “CROWN STREET PARK AND RIDE” AND TO AUTHORIZE THE TRANSFER
OF MATCHING FUNDS IN THE AMOUNT OF $24,480.82
Given its second reading;

MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-17-108
ON THE QUESTION
Alderman Deane

So this fund is paving a parking lot is that what this does?

Mayor Donchess

So this is the park and ride that’s being constructed over on Crown Street behind where Makeit Labs is. This is
the property that we bought with federal funds and the project is being done that way as well. It will be a park
and ride until and will remain that way unless there’s a train station there. So this is a supplemental
appropriation to that. It will provide 250 spaces. The project is underway now. | mean they’re well on their
way. Once the project is completed, we will have the 250 spaces. We will not be allowed to charge for them
because of the federal funds involved but some of our businesses may want to use that parking lot. For
example BAE is leasing spaces right here downtown. They might want to use and they shuttle people from
downtown to their Canal Street facility. This is closer. They may want to use this and we certainly would work
with them to make that possible. This really just provides the funds necessary to complete the project.

Alderman Deane

So the residents that live in that area that don’t have adequate parking now can utilize this free of charge?
Mayor Donchess

| believe they will be able to yes. We won't be able to charge for it.

Alderman Deane

Well the property owners are already paying a $24,000 part of the contributions with their tax base. The
landlords over in that area will be happy that there’s going to be ample parking for everybody now.

Alderman Siegel

Are the landlords able to count these spaces as spaces to use for their apartments for occupancy purposes?

Mayor Donchess

Well | think they would. Of course the situation would change where there ever to be a train station because
then there would constant use. | suspect but I’m not sure how the Planning Board would treat that if the
landlord wanted to try to designate these spaces is where people would park at night or whatever. That’s a
question | had not really considered before.

Board of Aldermen — 8/8/17 Page 7
Alderman Deane
So who monitors it? Who cleans it? Who maintains it?

Mayor Donchess

It’s going to be monitored by the Community Development Department and will be plowed like we plow all of
our other parking lots.

Alderman Deane

So when it needs paving, any repairs, striping, anything like that the Community Development Department is
the division that’s going to take care of all of that?

Mayor Donchess

Correct.

Alderman Deane

We can find funding in their operating budget to do so?

Mayor Donchess

Well of course Community Development will monitor the project. Plowing of parking lots is done by the Traffic
Department. They would undertake this in the same way that we plow all the other parking lots.

Alderman Deane

Which falls under Community Development?

Mayor Donchess

Traffic Department is under Economic Development.

Alderman Deane

| stand corrected. Are they ready to...so the Economic Development Department and the Community

Development Department are the two divisions that are responsible for the maintenance, upkeep, and
oversight of this property?

Mayor Donchess
Correct.

Alderman Deane
Okay. Thank you.
Alderman Cookson

Roll call please.

Board of Aldermen — 8/8/17 Page 8
A viva voce roll call was taken which resulted as follows:

Yea: Alderman Wilshire, Alderman Deane, Alderman Dowd, Alderman Caron
Alderman Siegel, Alderman Schoneman, Alderman McGuinness,
Alderman O’Brien, Alderman Lopez, Alderman McCarthy 10

Nay: Alderman Cookson, Alderman LeBrun, Alderman Moriarty 3
MOTION CARRIED
Resolution R-17-108 declared duly adopted.

R-17-109
Endorsers: Mayor Jim Donchess
Alderman Tom Lopez
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Sean M. McGuinness
Alderwoman Mary Ann Melizzi-Golja
Alderman Ken Siegel
Alderman June M. Caron
Alderman Richard A. Dowd
Alderman-at-Large Brian S. McCarthy
ESTABLISHING AN EXPENDABLE TRUST FUND FOR THE PURPOSE OF ACCEPTING
CONTRIBUTIONS TO CONSTRUCT FUTURE SIDEWALKS AND BIKE TRAILS ALONG
NORTHEASTERN BOULEVARD AND TO TRANSFER $12,234.22 FROM CAPITAL
PROJECT ACTIVITY “NORTHEASTERN BOULEVARD SIDEWALKS / BIKE TRAILS”
INTO THE EXPENDABLE TRUST FUND
Given its second reading;

MOTION BY ALDERMAN MCGUINNESS FOR FINAL PASSAGE OF R-17-109
ON THE QUESTION

Alderman Deane

Who has authority over how this money is spent and on what projects it’s spent on?

Mayor Donchess

| think we’d have to come to at least the Finance Committee for approval of any contract of $10,000 or more. |
think the Finance Committee would have approval.

Alderman Deane

What about the project itself? We've constantly told by the Finance Committee’s authority pertaining to
account numbers and account balances in process but yet this is calling for sidewalks and bicycle trails.

Mayor Donchess
No this is future sidewalks and bicycle trails. So these are as yet undesignated.
Alderman Deane

The Board of Public Works has authority over sidewalks. Do they have authority over bike trails as well?

Board of Aldermen — 8/8/17 Page 9

Mayor Donchess

That is a good question. We can get a legal opinion on that. It probably would depend where the bike trail is.

Attorney Bolton

| don’t believe bike trails are mentioned specifically in the authority of the Board of Public Works but to the
extent that they are an extension of parks which many are, then they are under the Park oversight authority of
the Board of Public Works to the extent they're along side streets the same would apply. In other locations the
situation is probably different.

Alderman McCarthy

The resolution names the Board of Public Works as the agent to expend from the trust fund.
Alderman Deane

Okay my last question is the bike trail paved or is it dirt?

Attorney Bolton

As far as I’m concerned, it could be either.

Mayor Donchess

The contract though would still require Finance Committee approval assuming it’s more than $10,000.
Alderman Deane

| just go back in time Mayor when we looked at all of these expendable trust funds that we set up and we
ended up taking them and putting them into quadrant funds and now we’re deviating from that. That was back
in 2005 maybe. Thank you very much.

Alderman Cookson

Similar to a theme that was expressed on the last one, who’s going to maintain these sidewalks once these
funds are expended?

President McCarthy
That would be the responsibility of the Board of Public works.
Alderman Cookson

In a similar situation is the Board of Public works responsible them for the upkeep of the sidewalks on the
Broad Street Parkway?

President McCarthy
| would assume they are.
Alderman Cookson

You would assume so. Thank you. Are they responsible for the upkeep of any sidewalks within the city?