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George E. Sansoucy, PE, LLC

Engineers & Aopraisers
May 25, 2018

Steven Bolton, Esq.

City of Nashua

229 Main Street

P.O. Box 2019

Nashua, NH 03061-2019

RE: Proposed Public Service Company Valuation and Appeal Support Contracts
Dear Steve:

This letter will serve to confirm our agreement to represent the City of Nashua in the upcoming
BTLA appeals brought by Eversource Energy for multiple communities in New Hampshire.
Enclosed are two contracts related to these work tasks.

The second contract is for the representation before the BTLA. This is performed as a group where
you will now be the 66" client of ours, as of today, in that defense group. All of your billings will
be 1/66" of the total monthly bill for this work. The scope of this work is the common discovery
phase, including Nashua, the court-ready report development that includes all communities
individually into a combined narrative and combined appendix, the common income-based
valuation analysis and research applied to each community, the common market sales analysis and
research applied to each community, and the common depreciation analysis and research applied
to each community. All of this will be prepared in a single report with each community’s individual
summary valuation attached and tabulated.

This is the same procedure that we used in the previous case, and it worked very well. We expect
to update, improve, add to, and better explain the facts, figures, and calculations, regulatory
insights for value, and updated market sales in this new report, especially where previous criticism
and cross examination, I felt, legitimately exposed a lack of clarity in my work that should be
improved going forward.

The trial scope will include depositions, trial preparation, our offices’ support for the attorneys
regarding cross examination of Public Service by my non-testifying experts in this case, my
testimony, and, in the event of my demise, Brian Fogg’s testimony, and any technical support for
the brief after the testimony.

George E. Sansoucy, PE, LLC

7 Greenieaf Woods Drive, Unit 102, Portsmouth, NH 03801 Te! 603.431.7636 Fax 602.431.7415 mail@sansoucy.com
279 Main Street, Lancaster, NH 03584 Tel 603.788.4000 Fax 603.788.2798 gsansoucy@sansoucy.com
Remittance Address 89 Reed Rd., Lancaster, NH 03584

Mr. Steve Bolton
May 25, 2018
Page 2

By way of comparison, the last trial had 49 towns and cities that were our clients, Each was billed
approximately 2% over a period of 2 full years, under the same scope described above. The total
cost per community for 2 years was $8,442 or $4,221 per year at approximately a 2% billing each.
At this time, there are 66 communities and the billing split will be 1.52%. This may vary over the
next 2 years if more towns come in, or if a few towns settle. 1 think that the City can reasonably
budget and expect that these costs will not more than double in the next trial and we are expecting
something greater than the $8,000 but less than $16,000 over 2 years per client. Hudson, for
example, has budgeted $20,000 for this report and trial, to be conservative.

The first contract enclosed is a fixed price contract of $50,000 to prepare the valuation model and
template that all of our clients currently have for Eversource that is critical to streamlining the
computerization of the appraisal discussed in contract #2. In order to do this cost effectively for
the City, we recommend a revaluation contract for this year as you are doing a City-wide
revaluation (full statistical update). We can build the model for the City to be used at trial by
preparing the 2018 values of Eversource on a City-wide basis. Therefore, this first contract is a
revaluation of Eversource as of 4/1/2018 which will provide you new values for 2018 and a
template to go forward for 2014, 2015, 2016, and 2017. The discovery for the template will be as
of 12/31/2017 for 4/1/2018. The template will then provide for the common discovery in the court
case as agreed to by the company, the BTLA, and the attorneys for 4/1/2014, 4/1/2015, 4/1/2016,
and 4/1/2017, the cost of which will be bom in contract #2. This first contract will need to start
immediately in June to meet your 2018 valuation deadlines. It will dove-tail nicely into the time
frame that the template will be required for Nashua for the court-ready report and the court
exchange date of February 1, 2019.

I hope this proposal meets with your needs and approval, but please feel free to call with any
questions you wish. The only hanging issue in this is what to do with the remaining utilities in
Nashua for the 2018 full statistical update. If you’ want us to do all of them for the City,
coordinating with your revaluation contractor, we will need io engage this conversation very soon.

George E. Sansouicy, PE, LLC

Mr. Steve Bolton
May 25, 2018
Page 3

We would appreciate one signed copy of each contract returned for our records. Thank you in
advance for your response.

Very truly yours,

GEORGE E. SANSOUCY, P.E., LLC
George E. Sansoucy, P.E.

GES/It

Enclosures

Gearge E. Sansoucy, Pe, LLC

SUBJECT: A Contract to provide revaluation services and engineering consulting services to the
City of Nashua, New Hampshire to value, as of April 1, 2018 for ad valorem taxation purposes,
the utility properties owned by Eversource Energy located in the City of Nashua. The City of
Nashua, hereinafter called the Town, and George E. Sansoucy, P.E., LLC, a Professional Engineer
having a principal place of business at 7 Greenleaf Woods Drive, Unit 102, Portsmouth, New
Hampshire 03801 in the County of Rockingham, State of New Hampshire, hereinafter called

AGREEMENT

Sansoucy, hereby mutually agree as follows:

GENERAL PROVISIONS
1. IDENTIFICATION
1.1 Client: City of Nashua
1.1.1 Name: City of Nashua
229 Main Street
P. O. Box 2019
Nashua, NH 03061-2019
1.1.2 Contracting Official: The Honorable James Donchess
Mayor of Nashua
1.1.3. Authorized Contact: Steven Bolton, City Counsel
1.2 Consultant: George E. Sansoucy, P.E., LLC
1.2.1 Name: George E. Sansoucy, P.E., LLC
Address: 279 Main Street, Lancaster, NH 03584
Tel: (603) 788-4000; Fax (603) 788-2798
E-mail: gsansoucy “sansoucy.com
Remittance address: 89 Reed Road, Lancaster, NH 03584
City of Nashua, NH Page | of 7

Eversource Energy 2018 Revaluation
George E, Sansoucy, P.E., LLC
Prepared: 5/25/2018

2.

GENERAL SERVICES TO BE PERFORMED BY SANSOUCY

2.1

Scope of Work:

The scope of this work is for the revaluation of the Eversource Energy utility
property in the City of Nashua. A USPAP 2018/2019-compliant appraisal report
will be prepared for the utility and provided by October 1, 2018. The value will be
provided by September 1, 2018 or thereafter as soon as the revaluation land
schedules are completed by the City. The public utility property to be valued will
include utility land and land rights based on the City-wide mass appraisal land value
schedules provided by the City to us from the revaluation contractor, and all special
purpose improvements. Valuations will be prepared considering all three
approaches to value, including the cost, income, and sales comparison approaches.
Recommended easement values will also be provided. This revaluation will also
provide the basis for creating a template to be used with the 2014, 2015, 2016, and
possibly 2017 values before the Board of Tax and Land Appeals.

Sansoucy will defend its appraisals before all local judicial review bodies
designated by the City. Should the taxpayer challenge any valuation developed by
Sansoucy, Sansoucy will defend the value from the beginning of the valuation
process through the local abatement process as part of this contract, which will end
on August 30, 2019 for 2018 values. Should a defense be required beyond the local
abatement process, or should any settlement work after the local process be
required, additional charges on a time and material basis in accordance with the
attached rate sheet will apply.

Additional scope items as requested by the City Counsel will be performed on a
time and material basis in accordance with the attached rate sheet.

2.1.1 Scope of the Work Products

A USPAP 2018/2019-compliant appraisal report that contains facts, figures,
and calculations necessary for the reader to understand the report will be
prepared for Eversource Energy, including a copy of the report which will be
mailed directly to the New Hampshire Department of Revenue Administration

(DRA).

City of Nashua, NH Page 2 of 7
Eversource Energy 2018 Revaluation

George E. Sansoucy, P.E., LLC

Prepared: 5/25/2018

2.1.2 Services to be Provided by the City:

Sansoucy will provide the City with a detailed request for information to be
sent by the City to the utility. The City will provide access to City records, tax
maps, and information provided by the utility, and will request that the utility
provide information directly to Sansoucy.

The City will provide, where applicable, the following information to the best
of its ability:

* The company’s 2017 tax cards, including cell tower host sites, and
tax bills;

The company’s 2018 Inventory of Taxable Property Form PA-28;
The 2017 MS-1;

Copy of, or authorized access to, the most recent tax maps;

Any recent building permits;

Any current settlement agreements;

Any PILOTS for the company;

Any leases for cell towers or cellular carriers;

Any cell tower current use / land use change tax forms;

Any municipal GIS mapping indicating utility location and data;
Pole license / franchise agreements (cable/telephone/fiber
optic/attachers); and

® Most recent land valuation schedules.

2.1.3. Services to be Provided by Sansoucy:

Sansoucy will provide a USPAP 2018/2019-compliant appraisal report of the
listed utility property to the City and a copy will be mailed directly to the DRA.

2.2. Completion of Work:

All values will be provided to the City by September 1, 2018. The final appraisal
report to the Town will follow no later than October 1, 2018 with a copy to the
DRA no later than 12/31/2018.

2.3 Personnel:

All work will be overseen and reviewed by a DRA-certified Assessor or Assessor
Supervisor.

All personnel and necessary field assistants employed by Sansoucy will be
competent to perform the work they are called upon to do in a good and

Cuy of Nashua, NH Page 3 of 7
Eversource Energy 2018 Revaluation

George E. Sansoucy, P.E., ELC

Prepared: 5/25/2018

workmanlike manner and in accordance with all applicable laws and rules in effect
at the time of the agreement. Sansoucy will not hire or compensate, in any way, a
City officer or employee or any member of the family of such officer or employee
in the performance of such work under this contract. Sansoucy will notify the City
of the names of all field personnel, technical assistants, and professional personne!
who will work on this project.

All personnel performing ad valorcm valuation tasks will be approved by the State
of New Hampshire Department of Revenue Administration at an approval level
commensurate with their level of appraisal involvement. The Assessor Supervisors
are George Sansoucy and Brian Fogg, and the manager of field listings and assessor
assistant is Charelle Lucas.

2.4 Public Relations:

The City and Sansoucy, during the progress of the work, will use their best efforts
and that of their agents and employees to promote full cooperation and amiable
relations with the utility. All publicity and news releases, if any, will be sent out
only by the City, or its authorized representative(s), and not Sansoucy.

2.5 Confidentiality:

Sansoucy agrees to not disclose to anyone except to the City or its authorized
representative(s) any information discovered for any purpose, or to permit anyone
to use or peruse any of the data on file in connection with the report, unless
specifically authorized by the City or under the New Hampshire freedom of
information statutes.

2.6 Compensation and Terms:

The City of Nashua, in consideration of the services hereunder to be performed by
Sansoucy, agrees to pay Sansoucy a fixed fee of $50,000. Invoices are due and

payable upon receipt.

Should a taxpayer file for an abatement of taxes, Sansoucy will defend its values
through the local abatement process as part of this agreement.

Any assistance at BTLA or Superior Court hearings as well as any litigation support
in the future related to these valuations will be charged on a time and material basis
per the attached rate sheet.

City of Nashua, NH Page 4 of 7
Eversource Energy 2018 Revaluation

George E. Sansoucy, P_E., LLC

Prepared: 5/25/2018

3. INSURANCE,
3.1 Sansoucy will maintain public liability insurance and automobile insurance.

3.1.1 The public liability insurance will be in the form of commercial general liability
with limits of $1,000,000 each person and $1,000,000 each occurrence for
bodily injury disability, and $1,000,000 each occurrence for property damage
liability.

3.1.2 The automobile liability insurance will be in the form of comprehensive
automobile liability and will provide limits of $1,000,000 each accident.

3.2 Sansoucy will not be responsible for consequential or compensatory damages
arising from the late performance or non-performance of the agreement caused by
circumstances which are either outside Sansoucy’s scope of services, beyond
Sansoucy’s control, or as a result of non-performance of any other party, person, or
entity affecting this contract.

3.3 Sansoucy will provide a certificate of insurance confirming the required insurance
coverages and providing that the City will receive ten (10) days written notice of
the cancellation or material change in the required insurance coverage. All
insurance will be valid in the State of New Hampshire.

4. ASSIGNMENT.

This Contract and the duties of Sansoucy hereunder will not be assigned.

2. AMENDMENTS.

This Agreement will not be amended, waived or discharged, unless by mutual written
consent of both parties.

City of Nashua, NH Page 5 of 7
Eversource Energy 2018 Revaluation

George E. Sansoucy, P.E., LLC

Prepared: 5/25/2018

Date:

In witness thereof, the City of Nashua has caused these presents to be signed by its Mayor,
thereunto lawfully authorized and caused its corporate (if appropriate) seal to be affixed and
George E. Sansoucy, P.E., LLC has caused the same to be signed by his lawfully authorized
representative on the date and year first above written.

In the presence of: City of Nashua, New Hampshire
a by: —

Witness James Donchess, Mayor
In the presence of: George E. Sansoucy, P.E., LLC

a. ——
Cotad A fread! by: —

Witness George E. Sansoucy, P.E.
City of Nashua, NH Page 6 of 7

Eversource Energy 2018 Revaluation
George E. Sansoucy, PE, LEC
Prepared: 5/25/2018

GLS

George E. Sansoucy, PE, LLC _
2018
ENGINEERING AND APPRAISAL RATE SCHEDULE*

Principal engineers, senior appraisers, MBAs,

including court testimony and deposition attendance 0.0. ceeececeoceocecec cece. $290.00/hour
Research engineers, associates, Appraisers .0.........c.cceccecsesceseceecececseeccececececeeeeeeecceces $225.00/hour
Technical persommel ooo... ce ecceeeccseeescscssssssecsceseseseacssesteassvesseteseissseuceseesecereccesse., $175,00/hour
Clerical persone) 0.0... cccceccceeesccseesessevessussvsssuseceecesausavasascuesceseseveeteaeeseveceseeceeeecese $125.00/hour

* All rates are portal to portal from Lancaster, N.H. or Portsmouth, N.H. Rates
include general office expenses, such as: non-specific in-house copies, meals,
non-specific mileage, office supplies, non-specific postage, telecommunications
charges, and tolls.

Job-specific and identifiable expenses are billed at cost in addition to the rates
shown, including but not limited to: transportation (air fare, car rental, taxi fare,
specific parking, specific mileage, etc.), lodging, document printing and
reproduction, research materials such as publications, subscriptions, and
database purchases.

City of Nashua, NH Page 7 of 7
Eversource Energy 2018 Revaluation

George E. Sansoucy, P.E., LLC

Prepared; 5/25/2018