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the liabilities and obligations assumed by Service Provider under this contract. The City of
Nashua shall not maintain any insurance on behalf of Service Provider. Subcontractors are
subject to the same insurance requirements as Service Provider and it shall be the Service
Provider’s responsibility to ensure compliance of this requirement.

Service Provider will provide the City of Nashua with certificates of insurance for coverage as
listed below and endorsements affecting coverage required by the contract within ten calendar
days after the City issues the notice of award. The City of Nashua requires thirty days written
notice of cancellation of coverage. The certificates and endorsements for each insurance policy
must be signed by a person authorized by the insurer and who is authorized by the State of New
Hampshire. General Liability and Auto Liability policies must name the City of Nashua as
an _ additional insured and reflect on the certificate of insurance. Service Provider is responsible
for filing updated certificates of insurance with the City of Nashua's Risk Management
Department during the life of the contract.

« All deductibles and self-insured retentions above $100,000.00 shall be fully disclosed in
the certificate(s) of insurance.

= If aggregate limits of less than $2,000,000 are imposed on bodily injury and property
damage, Service Provider must maintain umbrella lability insurance of at least
$1,000,000. All aggregates must be fully disclosed on the required certificate of
insurance.

» The specified insurance requirements do not relieve Service Provider of its
responsibilities or limit the amount of its liability to the City or other persons, and Service
Provider is encouraged to purchase such additional insurance, as it deems necessary.

s The insurance provided herein is primary, and no insurance held or owned by the City of
Nashua shall be called upon to contribute to a loss.

# Service Provider is responsible for and required to remedy all damage or loss to any
property, including property of the City, to the extent caused by Service Provider or
anyone employed, directed, or supervised by Service Provider.

12. INDEMNIFICATION Regardless of any coverage provided by any insurance, Service
Provider agrees to indemnify and shall defend and hold harmless the City, its agents, officials,
employees and authorized representatives and their employees from and against any and all suits,
causes of action, legal or administrative proceedings, arbitrations, claims, demands, damages,
liabilities, interest, reasonable attorney’s fees, costs and expenses to the extent caused by any
negligent act, omission, or fault or willful misconduct, whether active or passive, of Service
Provider or of anyone acting under its direction or control or on its behalf in connection with or
incidental to the performance of this contract. Service Provider’s indemnity, defense and hold
harmless obligations, or portions thereof, shall not apply to liability to the extent caused by the
sole negligence or willful misconduct of the party indemnified or held harmless.

13. FISCAL CONTINGENCY. All payments under this contract are contingent upon the
availability to the City of the necessary funds. This contract shall terminate and the City's
obligations under it shall be extinguished at the end of any fiscal year in which the City fails to
appropriate monies for the ensuing fiscal year sufficient for the performance of this contract.

Nothing in this contract shall be construed to provide Service Provider with a right of payment
over any other entity. Any funds obligated by the City under this contract that are not paid to
Service Provider shall automatically revert to the City’s discretionary control upon the

completion, termination, or cancellation of the agreement. The City shall not have any
obligation to re-award or to provide, in any manner, the unexpended funds to Service Provider.
Service Provider shall have no claim of any sort to the unexpended funds.

14. | COMPENSATION. Review by the City of Service Provider's submitted monthly invoice
forms and progress reports for payment will be promptly accomplished by the City. If the City
disagrees with any portion of an invoice or requires additional information, it shall notify Service
Provider in writing of the amount in dispute and the specific reason for the objection within 10
days of receipt of invoice and The City shall pay all undisputed invoices of Service Provider in
full within 30 days of the submitted monthly invoice forms and progress reports.

15, COMPLIANCE WITH APPLICABLE LAWS. Service Provider, at all times, shall fully and
completely comply with all applicable local, state and federal laws, statutes, regulations,
ordinances, orders, or requirements of any sort in carrying out the obligations of this contract,
including, but not limited to, all federal, state, and local accounting procedures and requirements,
all immigration and naturalization laws, and the Americans With Disabilities Act. Service
Provider shall, throughout the period services are to be performed under this contract, monitor
for any changes to the applicable laws, statutes, regulations, ordinances, orders, or requirements,
shall promptly notify the City in writing of any changes to the same relating to or affecting this
contract, and shall submit detailed documentation of any effect of the change in terms of both
time and cost of performing the contract.

16. | NONDISCRIMINATION. If applicable or required under any federal or state law, statute,
regulation, order, or other requirement, Service Provider agrees to the following terms. Service
Provider will not discriminate against any employee or applicant for employment because of
physical or mental handicap in regard to any position for which the employee or applicant for
employment is qualified. Service Provider agrees to take affirmative action to employ, advance
in employment, or to otherwise treat qualified, handicapped individuals without discrimination
based upon physical or mental handicap in all employment practices, including but not limited to
the following: employment, upgrading, demotion, transfer, recruitment, advertising, layoff,
termination, rates of pay, or other forms of compensation and selection for training, including
apprenticeship.

Without limitation of the foregoing, Service Provider's attention is directed to 41 C.F.R. § 60-
1.4, and the clause entitled "Equal Opportunity Clause" which, by reference, is incorporated into
this contract, to 41 C.F.R. § 60-250 et seq. and the clause entitled "Affirmative Action
Obligations of Service Providers and Subcontractor for Disabled Veterans and Veterans of the
Vietnam Era," which, by reference, is incorporated in this contract, and to 41 C.F.R. § 60-471
and the clause entitled "Affirmative Action Obligations of Service Providers and Subcontractors
for Handicapped Workers," which, by this reference, is incorporated in this contract.

Service Provider agrees to assist disadvantaged business enterprises in obtaining business
opportunities by identifying and encouraging disadvantaged suppliers, consultants, and sub
consultants to participate to the extent possible, consistent with their qualification, quality of
work, and obligation of Service Provider under this contract.

In connection with the performance of work under this contract, Service Provider agrees not to
discriminate against any employee or applicant for employment because of race, creed, color,
national origin, sex, age, or sexual orientation. This agreement includes, but is not limited to, the

Board of Aldermen Page 12
September 14, 2016

Alderman Clemons

| will respectfully disagree with the previous speaker. Escrows are money that we have already taken
from our citizens. We've already collected that revenue and it’s sitting in the bank. The difference is that
we are taking a portion of that and we are carrying it over into the next year and in this case with the
pension money we are putting it into an account that we can then use for future expenses when the state
brings down the hammer on us. | have no problem with taking money that we have already collected
from our citizens and putting it away in a savings account for an expense that we know is coming. |
would rather do that than to tax those residents again in a separate budget next year.

Alderman Lopez

| would like to agree with Alderman Siegel and Alderman Clemons. If there is a bullet leaving the gun we
probably shouldn't stand its’ way. Alderman Schoneman’s concern is that he doesn’t want to override
the spending cap. We shouldn’t encourage a situation where we have to have that discussion. If the
need is not going to go away and it’s still going to be there next year but we have a way that has already
been given to us to solve the problem, | think we owe it to our constituents to start working on the
problem instead of waiting until we do have to make a very difficult decision.

Alderman Schoneman

Again, we are going to spend the money on the pension and to the fact that we are going to spend
whatever percentage next year our spending cap allows plus this $900,000 means that we are spending
more money. Ultimately, whether it’s this years or next year, every dollar we spend is taxpayer money
and it’s not money that they give us, it is money that we take from them. | don’t think there is anyone
who says they want to pay more taxes so to invoke the spending cap; what | am saying is that this ought
to be contained within that. | don’t approve of the spending more and this is a mechanism to spend
more.

Alderman Dowd

We discussed this at the Budget Review Committee and we know for the next two years there is a $2
million hit coming down from the state in’17 and ’18. It was explained that the money that we would be
putting in this escrow account is to be used partially to offset those two years in particular so that it’s not
as big of an impact on our budget. With this money being allocated for pensions in the next two budgets
there is still going to be a significant tightness of the budget. We can’t afford a $2 million hit in the ’17
budget and stay under the spending cap. We have two alternatives if we don’t have this money. We had
the discussion about overriding the spending cap which will increase the taxes to cover things that we
need to cover or we are going to have to cut services to the citizens that they need. There is absolutely
no way that we are going to find $2 million in the 17 budget without impacting city services. This is the
most prudent road from an economically standpoint, both for the city financially and the citizens of
Nashua.

Alderman Schoneman

We are spending more and | don’t see how spending more is prudent for the taxpayers. This is not a
problem that the citizens of Nashua caused; it’s a problem that we caused because our budgets are a
little too much anyway. Here we are avoiding the override question and finding a way to spend money
that skirts it.

Alderman Dowd

When we do our budget planning we take into account things that we can envision. We did not envision
the state reneging on their guarantee to pay 35% of the pension cost and sending it back to the cities.

Mortality rates were updated to be based on the Pub-2010 Healthy Retiree Mortality Tables
with credibility adjustments for each group (police and fire combined) and projected fully
generational mortality improvements using Scale MP-2019.

Actuarial assumptions also reflect benefit changes resulting from CH 340 laws of 2019
(HB 616), which grants a one-time, 1.5% COLA on the first $50,000 of an annual pension
benefit to members who retired on or before July 1, 2014, or any beneficiaries of such
member who is receiving a survivorship pension benefit. The COLA will take effect on the
retired member’s first anniversary date of retirement occurring after July 1, 2020. The
adjustment shall become a permanent addition to the member’s base retirement allowance.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of
the most recent actuarial experience study, which was for the period July 1, 2016 — June 30,
2019.

Target Allocations

The long-term expected rate of return on pension plan investments was selected from a
best estimate range determined using the building block approach. Under this method, an
expected future real return range 1s calculated separately for each asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return net of investment expenses by the target asset allocation
percentage and by adding expected inflation. The target allocation and best estimates of
arithmetic real rates of return for each major class are summarized in the following table:

Weighted Average
Average Long-
Target Term Expected
Allocation Real Rate of
Asset Class Percentage Return
Large cap equities 22.50 % 3.71%
Small’mid cap equities 7.50 4.15%
Total domestic equities 30,90
Int'l equities (unhedged) 13.00 3.96%
Emerging int'l equities 7.00 6.20%
Total international equities 20.00
Core bonds 9.00 0.42%
Global multi-sector fixed income 10.00 1,66%
Absolute return fixed income 6.00 0.92%
Total fixed income 25.00
Private equity 10.00 TAY
Private debt 5.00 4.81%
Total alternative investments 15.00
Real estate 10.00 2.95%
Total 100.00 %

80

following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising,
layoff or termination, rates of pay or other forms of compensation, and selection for training,
including apprenticeship.

Service Provider agrees, if applicable, to insert these provisions in all subcontracts, except for
subcontracts for standard commercial supplies or raw materials. Any violation of any applicable
provision by Service Provider shall constitute a material breach of the contract.

17. FEDERAL SUBCONTRACTING REQUIREMENTS. If Service Provider awards a subcontract
under this contract, Service Provider, if applicable, shall use the following alternative steps:

A. Using the services of the Small Business Administration and the Minority
Business Development Agency of the United States Department of
Commerce, as appropriate; and

B. Requiring the subcontractor, if it awards subcontracts, to take the
affirmative steps set forth in paragraph A.

If applicable, Service Provider agrees to complete and submit to the City a Minority Business
Enterprise/‘Woman Business Enterprise (MBE/WBE) Utilization Report (Standard Form 334)
within 30 days after the end of each fiscal quarter until the end of the contract.

18. | ENDORSEMENT. Service Provider shall seal and/or stamp and sign professional
documents including drawings, plans, maps, reports, specifications, and other instruments of
service prepared by Service Provider or under its direction as required under the laws of the State
of New Hampshire.

19, ASSIGNMENT, TRANSFER, DELEGATION, OR SUBCONTRACTING. Service Provider shall
not assign, transfer, delegate, or subcontract any rights, obligations, or duties under this contract
without the prior written consent of the City. Any such assignment, transfer, delegation, or
subcontracting without the prior written consent of the City is void. Any consent of the City to
any assignment, transfer, delegation, or subcontracting shall only apply to the incidents
expressed and provided for in the written consent and shall not be deemed to be a consent to any
subsequent assignment, transfer, delegation, or subcontracting. Any such assignment, transfer,
delegation, or subcontract shall require compliance with or shall incorporate all terms and
conditions set forth in this agreement, including all incorporated Exhibits and written
amendments or modifications. Subject to the foregoing provisions, the contract inures to the
benefit of, and is binding upon, the successors and assigns of the parties.

20. CITY INSPECTION OF CONTRACT MATERIALS. The books, records, documents and
accounting procedures and practices of Service Provider related to this contract shall be subject
to inspection, examination and audit by the City, including, but not limited to, the contracting
agency, the Board of Public Works, Corporation Counsel, and, if applicable, the Comptroller
General of the United States, or any authorized representative of those entities.

21. DISPOSITION OF CONTRACT MATERIALS. Except for pre-existing works and/or other
intellectual property owned by Services Provider, any books, reports, studies, photographs,
negatives or other documents, data, drawings or other materials, including but not limited to
those contained in media of any sort (e.g., electronic, magnetic, digital) prepared by or supplied
to Service Provider in the performance of its obligations under this contract shall be the
exclusive property of the City and all such materials shall be remitted and delivered, at Service

Provider's expense, by Service Provider to the City upon completion, termination, or cancellation
of this contract. Alternatively, if the City provides its written approval to Service Provider, any
books, reports, studies, photographs, negatives or other documents, data, drawings or other
materials including but not limited to those contained in media of any sort (e.g., electronic,
magnetic, digital) prepared by or supplied to Service Provider in the performance of its
obligations under this contract must be retained by Service Provider for a minimum of four years
after final payment is made and all other pending matters are closed. If, at any time during the
retention period, the City, in writing, requests any or all of the materials, then Service Provider
shall promptly remit and deliver the materials to the City. Service Provider shall not use,
willingly allow or cause to have such materials used for any purpose other than the performance
of Service Provider's obligations under this contract without the prior written consent of the City.
Service Provider shall not be responsible for any claims arising out of the City’s extraction or
modification of the material, or for any claims arising out of the use of such materials by the City
for any other purpose than that which is expressly set forth under this Contract.

22. PUBLIC RECORDS LAW, COPYRIGHTS, AND PATENTS. Excluding Services Provider’s
pre-existing work and intellectual property, Service Provider expressly agrees that all documents
ever submitted, filed, or deposited with the City by Service Provider (including those remitted to
the City by Service Provider pursuant to paragraph 21), unless designated as confidential by a
specific statue of the State of New Hampshire, shall be treated as public records and shall be
available for inspection and copying by any person, or any governmental entity.

No books, reports, studies, photographs, negatives or other documents, data, drawings or other
materials including but not limited to those contained in media of any sort (e.g., electronic,
magnetic, digital) prepared by or supplied to Service Provider in the performance of its
obligations under this contract shall be the subject of any application for a copyright or patent by
or on behalf of Service Provider. The City shall have the right to reproduce any such materials.

Service Provider expressly and indefinitely waives all of its nghts to bring, including but not
limited to, by way of complaint, interpleader, intervention, or any third party practice, any
claims, demands, suits, actions, judgments, or executions, for damages or any other relief, in any
administrative or judicial forum, against the City or any of its officers or employees, in either
their official or individual capacity, for violations of or infringement of the copyright or patent
laws of the United States or of any other nation. Service Provider agrees to indemnify, to defend,
and to hold harmless the City, its representatives, and employees from any claim or action
seeking to impose liability, costs, and attorney fees incurred as a result of or in connection with
any claim, whether rightful or otherwise, that any material prepared by or supplied to Service
Provider infringes any copyright or that any equipment, material, or process (or any part thereof)
specified by Service Provider infringes any patent.

Service Provider shall have the right, in order to avoid such claims or actions, to substitute at its
expense non-infringing materials, concepts, products, or processes, or to modify such infringing
materials, concepts, products, or processes so they become non-infringing, or to obtain the
necessary licenses to use the infringing materials, concepts, products, or processes, provided that
such substituted or modified materials, concepts, products, or processes shall meet all the
requirements and be subject to all the terms and conditions of this contract.

23. FINAL ACCEPTANCE. Upon completion of all work under the contract, Service Provider
shall notify the City in writing of the date of the completion of the work and request
confirmation of the completion from the City. Upon receipt of the notice, the City shall confirm

to Service Provider in writing that the whole of the work was completed on the date indicated in
the notice or provide Service Provider with a written list of work not completed. With respect to
work listed by the City as incomplete, Service Provider shall promptly complete the work and
the final acceptance procedure shall be repeated. The date of final acceptance of a project by the
City shall be the date upon which the Board of Public Works or other designated official accepts
and approves the notice of completion.

24, TAXES. The City shall pay or retmburse Service Provider, as appropriate, for all
categories of taxes, other than income tax, including without limitation, use, sales consumer,
local license, levies, duties, and assessments of every nature due in connection with any work
performed under the contract. Service Provider is responsible to make any and all payroll
deductions required by law. The contract sum and agreed variations to it shall include all taxes
imposed by law. Service Provider hereby indemnifies and holds harmless the City from any
liability on account of Service Providers income and payroll taxes,.

25. | NON-WAIVER OF TERMS AND CONDITIONS. None of the terms and conditions of this
contract shall be considered waived by the City. There shall be no waiver of any past or future
default, breach, or modification of any of the terms and conditions of the contract unless
expressly stipulated to by the City in a written waiver.

26. RIGHTS AND REMEDIES. The duties and obligations imposed by the contract and the
rights and remedies available under the contract shall be in addition to and not a limitation of any
duties, obligations, rights, and remedies otherwise imposed or available by law.

27. PROHIBITED INTERESTS. Service Provider shall not allow any officer or employee of
the City to have any indirect or direct interest in this contract or the proceeds of this contract.
Service Provider warrants that no officer or employee of the City has any direct or indirect
interest, whether contractual, noncontractual, financial or otherwise, in this contract or in the
business of Service Provider. If any such interest comes to the attention of Service Provider at
any time, a full and complete disclosure of the interest shall be immediately made in writing to
the City. Service Provider also warrants that it presently has no interest and that it will not
acquire any interest, direct or indirect, which would conflict in any manner or degree with the
performance of services required to be performed under this contract. Service Provider further
warrants that no person having such an interest shall be employed in the performance of this
contract. If City determines that a conflict exists and was not disclosed to the City, it may
terminate the contract at will or for cause in accordance with paragraph 8.

In the event Service Provider (or any of its officers, partners, principals, or employees acting
with its authority) is convicted of a crime involving a public official arising out or in connection
with the procurement of work to be done or payments to be made under this contract, City may
terminate the contract at will or for cause in accordance with paragraph 8. Upon termination,
Service Provider shall refund to the City any profits realized under this contract, and Service
Provider shall be liable to the City for any costs incurred by the City in completing the work
described in this contract. At the discretion of the City, these sanctions shall also be applicable
to any such conviction obtained after the expiration or completion of the contract.

Service Provider warrants that no gratuities (including, but not limited to, entertainment or gifts)
were offered or given by Service Provider to any officer or employee of the City with a view
toward securing a contract or securing favorable treatment with respect to the awarding or
amending or making of any determinations with respect to the performance of this contract. If

City determines that such gratuities were or offered or given, it may terminate the contract at will
or for cause in accordance with paragraph 8.

The rights and remedies of this section shall in no way be considered for be construed as a
waiver of any other rights or remedies available to the City under this contract or at law.

28. ‘THIRD PARTY INTERESTS AND LIABILITIES. The City and Service Provider, including
any of their respective agents or employees, shall not be liable to third parties for any act or
omission of the other party. This contract is not intended to create any rights, powers, or interest
in any third party and this agreement is entered into for the exclusive benefit of the City and
Service Provider.

29. SURVIVAL OF RIGHTS AND OBLIGATIONS. The rights and obligations of the parties that
by their nature survive termination or completion of this contract shall remain in full force and
effect.

30. SEVERABILITY. In the event that any provision of this contract is rendered invalid or
unenforceable by any valid act of Congress or of the New Hampshire legislature or any court of
competent jurisdiction, or is found to be in violation of state statutes or regulations, the invalidity
or unenforceability of any particular provision of this contract shall not affect any other
provision, the contract shall be construed as if such invalid or unenforceable provisions were
omitted, and the parties may renegotiate the invalid or unenforceable provisions for sole purpose
of rectifying the invalidity or unenforceability.

31. MODIFICATION OF CONTRACT AND ENTIRE AGREEMENT. This contract constitutes the
entire contract between the City and Service Provider. The parties shall not be bound by or be
liable for any statement, representation, promise, inducement, or understanding of any kind or
nature not set forth in this contract. No changes, amendments, or modifications of any terms or
conditions of the contract shall be valid unless reduced to writing and signed by both parties.

32. CHOICE OF LAW AND VENUE. This contract shall be governed exclusively by the laws
of the State of New Hampshire and any litigation shall be brought in a court located in the State
of New Hampshire.

EXHIBIT B

Summary & Scope of Work

City of Nashua Office of Economic Development
Professional Services related to Hotel Market Study

Summary & Scope of Work

SCOPE OF SERVICES

The tasks that we will complete include:

Inspect both sites and the surrounding area.

Meet with you to discuss the attributes of the Nashua market including a discussion of the
planned developments and growth opportunities within the City. We will review all relevant
data that you provide to us.

Conduct a market supply and demand analysis of the Nashua lodging market which will
include interviews with competitive hotel managers, collection of data on proposed hotels,
and an analysis of current and future lodging demand generators.

Based on our research, we will prepare projections of occupancy and average room rate, and
financial projections for a proposed hotel on one of the subject sites. Per your direction, we
will assume that the proposed hotel would contain approximately 125 guest rooms and
would be developed as a nationally branded, select service hotel.

Gather industry data on the construction costs to develop a 125 room, select service hotel,
along with market based financing terms.

Based on the projected income stream for the Project, coupled with general development
costs and financing terms, coupled with required returns on investment, we will determine
the feasibility for hotel development. For the purpose of this analysis, we will ascribe no
value to the land assuming that the land is leased for $1.

Upon completion of our market research and analysis, we will prepare a brief memo (6-8
pages) that that addresses the following:

1. Market conditions. We will describe current and projected market supply and
demand factors that are relevant to the Project.

2. Project projections. We will present financial projections for the proposed Project
noting that the projections are subject to change based on more specific facility
assumptions and management structure.

3. Project feasibility. We will describe the financial feasibility of the Project, and
quantify Project shortfalls (the investment needed by the City for the Project to be
feasible).

Our brief report will be for your internal use only. The report, and our findings, may not be relied
upon by prospective developers to obtain financing or investment.

EXHIBIT C

LIMITATIONS OF THE STUDY

PINNACLE ADVISORY GROUP’S FINDINGS ARE SUBJECT TO THE FOLLOWING LIMITATIONS:

® It is expressly understood and agreed that Pinnacle’s study and reports do not include any
opinions or analysis regarding environmental, zoning, land use, licensing and/or other legal
and regulatory requirements for the project. Rather, such legal and regulatory issues are
beyond the scope of Pinnacle’s work and should be dealt with by the Client separately
through appropriate experts.

* Pinnacle offers no opinions that are legal in nature and expressly disclaims any responsibility
for same. The Client, and not Pinnacle, is responsible to ensure that the Project has all
necessary legal requirements to operate its business in accordance with the assumptions
made by Pinnacle in its reports.

* Pinnacle shall not be required to give testimony or appear in court or at a deposition by
reason of this assignment, with reference to the property in question unless arrangements
have been made previously therefore.

® Pinnacle shall not have responsibility to update its findings or analysis regarding the Project
to take into account changes in market or other conditions that occur subsequent to the
completion of its fieldwork. Rather, Pinnacle’s work shall be deemed completed as of the
date of its last report.

® Client shall indemnify, defend and hold harmless Pinnacle from and against all claims,
liabilities, damages, costs and expenses of any nature suffered or incurred by Pinnacle
(including, without limitation, reasonable attorneys’ fees) arising out of or in connection with
Pinnacle’s work under this Agreement. This provision shall survive termination or expiration
of this Agreement.

* Pinnacle shall use its expertise and best efforts in order to analyze the viability of the
proposed Project. However, it is understood and agreed that there are many factors that
may impact the success or failure of a business including those that are beyond the control of
any party such as general economic conditions, force majeure, acts of war or terrorism,
weather events, work stoppages, etc. As such, it is understood and agreed that nothing
contained in any work prepared by Pinnacle should be construed or considered as a
guarantee of actual performance of the Project and Pinnacle expressly disclaims any liability
therefore.