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Special Board of Aldermen 09-21-2021 Page 19

have been the answers you wanted to hear, but, you know, trying to give you some answers. With the 100% funding, it
is in the abstract but, you know, there's not a magic day where you're 100% funded and you're 100% funded forever.
You could be 100% funded one day and 95 or 102 the following day depending on, you know, how the quarterly
eamings report did what it did to Wall Street.

When you talk about paying out the benefits not all at once, but you over the lifetime of all these generations of public
employees, and you're talking about somebody who can enter the plan in their 20s, or the 30s, work 20, 30, even 40
years, and then live another 20, 30, 40 years, and that's the horizon that you're looking at. A lot can happen in 60 to 70
years, you know, in the world. So if you're not shooting to be fully funded, you're much more vulnerable to shocks and
disruptions that it's gonna cost more to fund the plan than if you were in a stronger financial position. So, you know, |
think it's fair to say, you know, 100 is the goal. We may or may not be there because of layered amortization and maybe
always carrying a debt forward but if you think of it, you know, as a kink in the hose, this is this balloon that unfortunately
you folks are all dealing with in your budget right now. But getting through this pain and having the discipline to pay this
back up to a better funding ratio will prevent it from happening again in the future. Hopefully, you know, there's certainly
going to be a State in New Hampshire, as the Mayor alluded to, and | certainly hope there’s always going to be a
Nashua. The town where my kids grew up, people are going to want to live here like they still do now | believe.
Alderman Dowd

By the way, can you tell me what percentage of the people that are in the State retirement plan are eligible to retire?
Marty Karlon, Director of Communications and Legislative Affairs

Not off the top of my head. Basically if you're reached the minimum age requirements to retire, you can retire. So folks
who are older than 60 on the employee and teacher side can retire now if they're that old and the police and fire is age
and service requirements for folks that range anywhere from age 45 with 20 years to age 52 % with 25 years for the
newer hire. So there's always a pool but we don't tend to look at that and have a handy stat for you. | could research that
if you're interested in though.

Alderman Dowd

So you also alluded to that you're going to have a year-end report very soon?

Marty Karlon, Director of Communications and Legislative Affairs

Yeah those come out in December - the investment and the financial report.

Alderman Dowd

Not until December?

Marty Karlon, Director of Communications and Legislative Affairs

So we get these numbers from the actuary usually around Halloween or early November and then to finish the reports so
that the funded ratio and that information will be available.

Alderman Dowd

So do we get copies when that's available?

Marty Karlon, Director of Communications and Legislative Affairs
Sure.

Alderman Dowd

Thank you.

President Wilshire

Alderman Clemons.

Special Board of Aldermen 09-21-2021 Page 20
Alderman Clemons

Thank you, Madam President. | just wanted to give my two cents for whatever its worth. Probably worth a lot less in the
retirement system but. So my feeling on this is that the, you know, | understand the goal of the 100% and getting there.

| actually agree with it to an extent but the issue is, is that, and this is what Alderman Schmidt was referring to, and that is
that you also have to live in reality. The reality right now is that, you know, people are hurting still from the pandemic.
The pandemic still going on. You have a number of Aldermen here participating from home, myself included, just to be
overly cautious. So you still have an economy that's recovering. The biggest part of it, though, is to me the fact that the
State doesn't contribute a dime to this system. So, you know, | think that, in my opinion you know, we have a perfect
storm that happened this year. Certainly | can understand the argument that, you know and in theory, had the pension
plan been fully funded, that this wouldn't have been as drastic as a year or as tough for Nashua or other cities and towns
because we would have had that higher funding source.

But on the other hand, that's an artificial thing that was created via Statute because in all reality, the legislature could
have decided to relax some of those burdens that came down to Nashua in a number of different ways. They could
have, you know, not to overuse the phrase “kick the can down the road” but certainly they could have, you know, at least
delayed that 100% implementation to kind of give people who are living here in reality a break. | think it's incumbent
upon the legislature and it’s incumbent upon the people who are voting to understand who they're voting for and what
they stand for because people's livelihoods, and their taxes, and things like that it makes a difference. So when you hear
people, you know, that are putting these goals and they stick by them 100% no matter what, sometimes that's not the
way to go.

In my opinion, you want somebody in office who's going to be flexible. You want somebody who's going to understand
that things change and you need to be able to change with the times. So you know, | think we have some good people
from Nashua up there in that legislature but kind of what Alderman O’Brien said, | think some of the people in the rest of
the State, | don't think they understand the difficulties that some of us here in Nashua or another cities are facing. So it's
a little disappointing but regardless, that's my two cents and | appreciate the time. Thank you.

President Wilshire

Anyone else have any questions, comments? Seeing none.

Mr. Karlon and Miss Goodwin thank you so much for being here this evening. We really appreciate you taking the time
to come down to Nashua and explain to us the pension system. So thank you very much for being here.

Marty Karlon, Director of Communications and Legislative Affairs

Thanks for having us.

Jan Goodwin, Executive Director of NH Retirement System

Thank you for all the good questions.
President Wilshire

Thank you.

UNFINISHED BUSINESS

Motion to Forward to the Ballot the Citizens Petition Relative to a Citizens Petition Seeking to Amend the City Charter
Relative to the Nomination and the Confirmation of Appointments to the Nashua Board of Police Commissioners

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO FORWARD TO THE BALLOT THE CITIZENS PETITION
RELATIVE TO A CITIZENS PETITION SEEKING TO AMEND THE CITY CHARTER RELATIVE TO THE
NOMINATION AND THE CONFIRMATION OF APPOINTMENTS TO THE NASHUA BOARD OF POLICE
COMMISSIONERS BY ROLL CALL

ON THE QUESTION

Special Board of Aldermen 09-21-2021 Page 21
Alderman Dowd

Just for clarification through Corporation Counsel, it's | believe the legal opinion of legal counsel that we have no option
but to vote yes on this.

Steve Bolton, Corporation Counsel

The Board of Aldermen is required to order it placed on the ballot.
Alderman Dowd

That's what | was trying to get.

President Wilshire

Alderman Jette.

Alderman Jette

Thank you, Madam President. At the public hearing, former Alderman and County Commissioner Mike Soucy made the
assertion that our City Charter requires | think it's 10% of registered voters. He said that the Petition did not have a
sufficient amount of signatures and that basically that we could not put this on the ballot. | would through you | would like
to ask Corporation Counsel whether he has a response to that and can we be assured that we're doing the right thing by
moving this forward.

Steve Bolton, Corporation Counsel

I'll give you every assurance | can. The fact is the legislature which established the City Charter and less special act
regarding the Police Commission to begin with has more recently pursuant to the Constitution and the amendment to the
Constitution that was made in 1964 relative to city charters adopted locally has passed RSA chapter 49-B, which
provides as the Constitution authorizes, a way for municipalities to amend their charters.

In our case, the City Charter and 49-B:5 specifically deals with the percentage and the percentage of what is needed for
a citizens petition to reach the ballot and it's 15% of the total votes cast in the last municipal election. That is the current
law. What was done decades ago in the past by a different legislature has been superseded. Our City Clerk has gone
through the signatures and has certified to you that that 15% threshold was reached. So | don't know what analysis that
former police officer, former firefighter, former alderman, county commissioner Soucy is using. | don't know where he got
his legal education but | do not understand at all where he comes up with the idea that he has.

Alderman Jette

Thank you very much for that. It's probably just because, you know, when people look at our Charter as it's listed in our
online or in Charter itself, you know, says what he says it said but as you pointed out, it has been amended, you know,
by subsequent action by the legislature and perhaps even the Supreme Court has expressed an opinion about this. It
makes me think that in the future if we're re-elected, maybe two years from now at the next municipal election, we might
consider asking the voters whether or not they would authorize a Charter Commission that could look at our present
Charter so that when people look at the Charter it would be nice for the Charter to say what the current law is and not
say something that's different or there has been amended by the legislature. | Know the legislature can always amend it
but at least, you Know, we ought to have a Charter that when we look at it, you know, as much as possible states exactly
what the law is and not mislead people about what it is or require that they have to hire a lawyer to get an opinion about
what it means. | think our Charter needs updating so that it says what it means and it means what it says so that people
can look at it and understand it. But thank you for making that clear. Thank you.

Alderman Lopez

With respect Alderman Jette, | don't know if you need a Charter Commission on that and we have the Facebook
comment section. They can handle that for us.

Alderman Jette

I'm sorry. | didn't | didn't hear you. | didn't understand you.

AMENDMENT NO.1
TO
AGREEMENT BETWEEN
CITY OF NASHUA, NEW HAMPSHIRE
AND

WRIGHT-PIERCE
FOR
ENGINEERING DESIGN SERVICES

This AMENDMENT No.1 made the day of. , 2022, by and between The City of Nashua, New
Hampshire, (hereinafter called OWNER), and Wright-Pierce (hereinafter called ENGINEER).

WHEREAS, an AGREEMENT was entered into on January 10, 2022 between the OWNER and
ENGINEER, which AGREEMENT is entitled “Engineering Design Phase.”

hereinafter referred to as AGREEMENT.

WHEREAS, the OWNER desires the ENGINEER to perform additional design engineering for two (2)
additional projects that are located in the same general vicinity as the Dry Well Valve and Replacement design
project. These two (2) additional design projects, in addition to the Dry Well Valve and Replacement design
project, were recommended in the” Nashua WWTF 20-Year Facility Engineering Report, date July 28,
2021”. Amendment 1 Scope of Work, attached as EXHIBIT A - AMENDMENT 1 and Fee Schedule,
attached as EXHIBIT B - AMENDMENT 1.

Payment will be made in accordance with the original agreement based on hours and rates by labor category
with mark-up and incidental expenses in accordance with the attached fee, as modified for this amendment.

Original Amend-1 Amended
Tasks Contract Amount Contract
Amount Amount
Preliminary Design Dry Well and Pipe
Replacement
Initial Planning and Investigations $18,724 $0.00 $18,724
Preliminary Design Development $54,375 $0.00 $54,375
Prepare Draft Preliminary Drawings $27,351 $0.00 $27,351
Finalize Preliminary Design Report $5,350 $0.00 $5,350
Wash Press Chute Modifications
Preliminary Design $0.00 $12,553 $12,553
Final Design $0.00 $15,894 $15,894
Bidding Allowance $0.00 $553 $553
Screening Garage Odor Control
Preliminary Design $0.00 $13,528 $13,528
Final Design $0.00 $35,141 $35,141
Bidding Allowance $0.00 $631 $631
TOTALS | $105,800 $78,300 $184,100

Page 1 of 3

Special Board of Aldermen 09-21-2021 Page 22
Alderman Lopez

| said we have the Facebook comments section that can handle it.

Alderman Jette

Oh. Good point. Thank you.

Alderman Clemons

Thank you Madam President. Through you to Cooperation Counsel, my question is hypothetically, what would happen if
this motion failed?

Steve Bolton, Corporation Counsel

You could all go to jail. | don't think that would happen but theoretically was how you prefaced your question. You're
required by law to put this on the ballot.

Alderman Clemons
So may | continue?
President Wilshire
Yes.

Alderman Clemons

What happens if you know we don't vote on it? | mean it seems to me that | guess | don't understand why it's taking an
action of this Board if it's just something that automatically has to happen.

Steve Bolton, Corporation Counsel

Well Alderman Clemons that's a good question for State Representatives.

President Wilshire

If we only knew one.

Steve Bolton, Corporation Counsel

Because you had the public hearing that's required by law last week. | will tell you that RSA 49-B:5, V, B says within
seven days after the public hearing, the municipal officers — and that term is defined and in Nashua’s case it means the
Board of Aldermen - the municipal officers shall file with the municipal clerk a report containing the proposed petition
amendment and shall order the proposed amendment to be placed on the ballot at the next regular municipal election.
So that's what the legislature has said. This Board has to order it placed on the ballot. So why it isn’t automatic, | don't
know. The legislature in its great wisdom required YOU to order it placed on the ballot.

President Wilshire

You all set Alderman Clemons.

Alderman Clemons

Yep.

President Wilshire

Okay. Any further discussion? Seeing none, would the Clerk please call the roll?

A viva voce roll call was taken to which resulted as follows:

Special Board of Aldermen 09-21-2021 Page 23

Yea: Alderman O’Brien, Alderman Dowd, Alderman Caron, Alderman Lopez,

Alderman Jette, Alderman Schmidt, Alderman Laws, Alderman Cleaver,

Alderman Harriott-Gathright, Alderman Wilshire 10
Nay: Alderman Clemons 1
MOTION CARRIED
ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE SEPTEMBER 21, 2021, SPECIAL MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED, BY ROLL CALL

A viva voce roll call was taken to adjourn the Special Board of Aldermen meeting which resulted as follows:
Yea: Alderman O’Brien, Alderman Dowd, Alderman Caron,

Alderman Clemons, Alderman Jette, Alderman Schmidt,

Alderman Laws, Alderman Cleaver, Alderman Harriott-Gathright,

Alderman Wilshire 10
Nay: Alderman Lopez 1
MOTION CARRIED

The meeting was declared adjourned at 8:53 p.m.

Attest: Susan Lovering, City Clerk

Past - 1967:
In the beginning...

» RSA 100-A enacted, establishing NHRS

¢ Consolidates four separate plans for teachers,
police officers, firefighters and employees of
the state and political subdivisions

° Creates Group | for teachers and employees
and Group Il for police officers and firefighters,
each with its own benefit structure

o State pays 40% of employer contributions on
behalf of teachers

9/20/2021

Past - 1977:
The Employer Subsidy

» State reduces employer contribution subsidy
for teachers to 35% from 40%

> State creates 35% employer contribution
subsidy for police officers and firefighters
employed by political subdivisions

» Subsidy remained in place until it was
reduced beginning in 2009 and then
eliminated in 2011

Past - 1983:
Heads | win, tails you lose

» Legislature creates Special Account to fund

future COLA and OPEB benefits

e Funded by ‘excess earnings’ - or ‘gain-sharing’ -
when investment return exceeded the assumed rate
of return by a set percentage

° Subsequently determined to be in contravention of
the Internal Revenue Code as it shifted funds from
the pension trust and contributed to a structural
unfunded liability

9/20/2021

Past - 1984:
A Granite (State) Foundation

» NH Constitution amended (Part |, Article 36-a)

° Establishes that pension funds are for the exclusive
benefit of NHRS members and are not to be diverted
for any other purpose

° Requires Trustees to set actuarially sound employer
contribution rates and employers to pay the rates in
full

¢ Distinguishes NHRS from many systems where
annual funding level is at the discretion of the
legislature (e.g. Illinois, New Jersey, Kentucky)

Past - 1985:
Autonomy from the State

» NH Supreme Court rules in Sununu v NHRS

° Issue: Whether or not NHRS contracts had to be
approved by the Governor & Executive Council

° Decision: NHRS is not an Executive Branch agency
and operates for the exclusive benefit of its
members - largely taking retirement system
management and administration out of the political
realm

9/20/2021

Past - 1991:
Digging the Hole

> Following an actuarial valuation in 1989 which
indicated a dramatic increase in unfunded
liability from $3.9 million to $217.5 million, the
legislature in 1991 adopts the ‘Open Group
Aggregate’ actuarial method and sets the
assumed rate of return at 9.75%, both done for
the purpose of reducing employer contribution
rates

> Infringement of Board’s fiduciary duty to set
actuarially sound rates

>» Resulted in artificially depressed employer

contribution rates from 1991 to 2009

Past - 2007:
The Great Awakening

» Legislature replaces Open Group Aggregate
with ‘Entry Age Normal’ actuarial method and
creates 30-year amortization of liability to
begin in FY 2010
° Unfunded liability is determined to be $2.4 billion

> Funding for Special Account limited

» Legislature creates HB 876 Commission to
examine all aspects of the retirement system;
the first ‘Decennial Commission’

9/20/2021