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RESOLUTION:

PURPOSE:

ENDORSERS:

COMMITTEE

ASSIGNMENT:

FISCAL NOTE:

LEGISLATIVE YEAR 2019

R-19-112

Recognizing Brian 8. McCarthy

Mayor Jim Donchess
Board of Aldermen

None.

ANALYSIS

This resolution recognizes Brian 8. McCarthy for his years of service and invaluable
contributions to the City of Nashua.

Approved as to form:

Office of Corporation Counsel

By: ‘Bates Cima

Date: | UY Aepbeain D01

O-18-032

Endorsers: Alderman Jan Schmidt
Alderman Richard A. Dowd
Alderwoman Mary Ann Melizzi-Golja
Alderman Tom Lopez
Alderman-at-Large Lori Wilshire

AUTHORIZING STOP SIGNS AND RIGHT AND LEFT TURN ONLY LANES AT THE

INTERSECTION OF PINE HILL ROAD AND CHARRON AVENUE

e Committee on Infrastructure Recommends: Final Passage

O-18-034

Endorsers: Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman-at-Large Brandon Michael Laws
Alderman Tom Lopez
Alderman Jan Schmidt
Alderwoman-at-Large Shoshanna Kelly

DESIGNATING PARKING ON CHESTNUT STREET FOR FIRE DEPARTMENT EMPLOYEES

e Committee on Infrastructure Recommends: Final Passage
NEW BUSINESS — RESOLUTIONS

R-19-107
Endorser: Mayor Jim Donchess
RELATIVE TO THE SUPPLEMENTAL APPROPRIATION OF $50,250 OF UNANTICIPATED REVENUE
FROM FUND #1000 “GENERAL FUND”, ACCOUNT #43295 “REVENUE FROM FEDERAL GRANT”
INTO FUND #7074 “SCHOOL SPECIAL EDUCATION EXPENDABLE TRUST FUND”

R-19-108
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $15,573 FROM THE STATE OF NEW
HAMPSHIRE DEPARTMENT OF ENVIRONMENTAL SERVICES, EXOTIC SPECIES PROGRAM AND
AUTHORIZING THE TRANSFER OF MATCHING FUNDS

R-19-109
Endorser: Alderman-at-Large Lori Wilshire
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK WATER WORKS, INC.
TO BORROW FUNDS FROM THE STATE OF NEW HAMPSHIRE DRINKING WATER AND
GROUNDWATER TRUST FUND

R-19-110
Endorser: Mayor Jim Donchess
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO A LEASE AGREEMENT WITH MAKEIT
LABS, CORP. FOR 25 CROWN STREET

R-19-111
Endorser: Mayor Jim Donchess
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF AN ADDITIONAL $138,937.92
FROM THE STATE OF NEW HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES
INTO TRANSIT GRANT ACTIVITY “FEDERAL TRANSIT AUTHORITY (“FTA”) OPERATING GRANT”

NEW BUSINESS — ORDINANCES
O-19-036

Endorser: Alderman Tom Lopez
DESIGNATING AN ADDITIONAL SECTION OF BOWERS STREET ONE-WAY EASTERLY

Q-19-037
Endorser: Alderman Ernest Jette
RAISING THE AGE TO PURCHASE, USE, AND POSSESS TOBACCO PRODUCTS AND
E-CIGARETTES FROM EIGHTEEN (18) TO TWENTY-ONE (21)

O-19-038
Endorsers: Alderwoman Mary Ann Melizzi-Golja
Alderman June M. Caron
AMENDING THE SIGN ORDINANCES RELATIVE TO ADDRESS NUMBERS OF GROUND SIGNS
PERIOD FOR GENERAL PUBLIC COMMENT
REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN

Committee announcements:

ADJOURNMENT

V2 PENNIGHUCK” 25 MANCHESTER STREET
PO BOX 1947
MERRIMACK, NH 03054-1947

(603) 882-5191
FAX (603) 913-2305

WWW.PENNICHUCK.COM

VIA HAND DELIVERY

January 30, 2019

EGEIWVE

Mr. Steven A. Bolton | JAN 3.0 2019
Corporation Counsel

City of Nashua By Le °g ee i
229 Main Street oO

Nashua, NH 03060

Re: — Request for Approval of Loan from the New Hampshire Drinking Water
and Groundwater Trust Fund to Pennichuck Water Works, Inc.

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 several resolutions authorizing Pennichuck’s regulated public water utility subsidiary,
Pennichuck Water Works, Inc. (“PWW”), to borrow funds from the New Hampshire Drinking
Water and Groundwater Trust Fund (the “Trust Fund”).

Background. As part of the City’s acquisition of Pennichuck, in accordance with speciai
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.

Mr. Steven A. Bolton
Corporation Counsel
January 30, 2019
Page Two

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 Borrowings. Pennichuck requests the City’s approval for a loan from the Trust Fund
to PWW. The specifics of this loan are described below:

° under the proposal, PWW would enter into a new long-term loan from the Trust Fund
in the principal amount of $5,500,000 to fund the Merrimack River Raw Water Intake

project.

The Lender. The funds for this loan will be provided by the New Hampshire Drinking Water and
Groundwater Trust Fund. The Trust Fund is administered by the New Hampshire Department of
Environmental Services (“NHDES”). The Trust Fund provides public and private water systems
the opportunity to borrow funds on favorable terms at interest rates that are below commercial loan
rates. Pennichuck has received confirmation from the NHDES that funding is available for this
project.

Terms of the Borrowings. The loan will have favorable terms, which will be reflected in a
written Loan Agreement and Promissory Note issued by PWW, as required by the Trust Fund.
Amounts advanced pursuant to the loan during the construction period will accrue interest at a
rate of 1% per annum, and the total accrued interest will be due upon substantial completion of
the project. The terms of the Trust Fund loan will require repayment of the loan principai pius
interest over a period not to exceed 40 years, commencing six months after the project is
substantially complete. The current interest rate on the Trust Fund borrowing is 3.38% per
annum, though the final rate is not locked in until the loan commences its repayment period. The
loan will be unsecured. The corporate parent, Pennichuck, will provide an unsecured corporate
guaranty of the repayment of the loan in accordance with the terms of a Guaranty Agreement.

Approval by Pennichuck and PWW. The loan to finance the project and the guaranty of the
loan have been approved by the respective Boards of Directors of Pennichuck and PWW.

Pennichuck recommends that the City authorize (i) PWW to enter into the loan under the Trust
Fund, and (ii) Pennichuck to enter into the Guaranty Agreement for the loan.

Mr. Steven A. Bolton
Corporation Counsel
January 30, 2019
Page Three

Other Approvals. As a regulated public utility, PWW must obtain approval of the loan from the
New Hampshire Public Utilities Commission (“NHPUC”), which will approve the loan if it finds
the loan to be consistent with the public good. PWW will file a petition for approval with the
NHPUC in the last week of January or first week of February, 2019, and expects the NHPUC to
consider the petition promptly. Under the Trust Fund, the loan must also be approved by the
Governor and Executive Council.

Lower Costs Are Good for Customers. Pennichuck and its Board of Directors have
determined that the capital project to be financed by. the Trust Fund loan will allow PWW to
continue to provide safe, adequate and reliable water service to its customers on a cost-effective
basis. The terms of the financing through the Trust Fund are very favorable compared to other
alternatives and will result in lower financing costs than would be available under other debt
options. These lower financing costs will be passed on to customers.

Requested Approvals. For the reasons described above, Pennichuck respectfully requests that
the City, acting in its capacity as sole shareholder of Pennichuck and pursuant to Article [X(3) of
Pennichuck’s Articles of Incorporation, authorize the following actions:

RESOLVED, that the City hereby approves the borrowing by Pennichuck Water
Works, Inc. of up to $5,500,000 from the State of New Hampshire pursuant to the New
Hampshire Drinking Water and Groundwater Trust Fund to fund the Merrimack River
Raw Water Intake project;

FURTHER RESOLVED, that the City hereby approves the guaranty by Pennichuck
Corporation of the payment by Pennichuck Water Works, Inc. of the loan authorized in
the prior resolution; and

FURTHER RESOLVED, that the City hereby authorizes Pennichuck Corporation and
Pennichuck Water Works, Inc., their Boards of Directors, and their Officers, to take any
and all actions required to obtain all necessary approvals with respect to the actions
described in these resolutions and to execute and deliver such documents as are
necessary to effect the Trust Fund loan and the guaranty described in these resolutions.

Respectfully submitted,

PENNICHUCK CORPORATION

By: S Lh

Larry D. Goodhue
Chief Executive Officer

cc. Mayor James Donchess

Board of Aldermen — 3/22/16 Page 4

Mr. Jean Parent, 15 % Main Street

| am the president of JP Management, Inc. and | also own property in Nashua. | am totally against this bill for a
multitude of reasons, mainly because | believe it was underhanded and swept through under the carpet. None
of us knew what hit. | found out about it two hours prior to the meeting in the first week of March. | agree with
what the previous two speakers said. Not one of us was notified. This is an ordinance that affects us, why
were we not notified? There is already a due process now and | don’t have a problem with the code officials,
they are great. | don’t understand why we are going to have to put so much teeth now into it to give them more
power. Is this going to bite me in the back next year or the year after? We would like to have input. There’s a
time limit on this ordinance, ten days and | don’t agree that this is enough because some of these violations
can take longer than ten days. This bill seems ambiguous; it goes from verbal to citation to violation to fees
which can go up to $1,000 or more. It needs to be worded in a way that everyone can understand what you
are talking about. This bill gives too much power to them and too much power is not good. It’s great for the
people that don’t follow the code but most of us try to.

Mr. Don Thibault, 10 Caitlyn Circle
| think this should be either killed or re-written so that it’s fair.
Unidentified Speaker, P.O. Box 3854

We are here to ask the Board to table it and bring it back to committee so the landlords can have a say. Years
ago, like in 70’s or 80’s, the city used to withhold rent to bad landlords until the violations were taken care of
and they also did that with taxes. If you owed taxes and the city was providing welfare to a tenant they would
withhold the rent and | think that would be a better way to go after some of these out-of-town landlords. 99% of
us are not bad landlords but we also need to be heard when a bill comes through. We feel that we were blind-
sided. We are not against people having a good, clean home. Some of these landlords own two and three
family homes and they live in the building. All | am asking is that you please table it and bring it back to
committee so at least we can be heard. Maybe some tenants and landlords can get together so we can hear
both sides of the issues and maybe resolve. We used to have meetings with even the bad landlords and
explain to them that the landlords in Nashua are not going to put up with it and that their buildings need to be
as nice as ours. | don’t think fees will hurt them but | think if the city withholds the rent you will get their
attention.

MOTION BY ALDERMAN DEANE TO EXTEND PUBLIC COMMENT UNTIL EVERYONE HAS HAD A
CHANCE TO SPEAK
MOTION CARRIED

Mr. Daniel LaPointe, Tyngsborough, MA

| agree with everything everyone else has said. One thing I'll add is that a lot of things that would fail the code
is not broken by us; it’s broken by the tenants. Who will protect us? We receive the fines and we are
responsible for things they are constantly doing. It puts a strain on the landlord. We didn’t have a chance to
speak on our points and | think you should table it and have a meeting with the landlords.

Mr. Brad Whitney, 38 Fifield Street

| am in favor of what the other people have said so far. | read that the purpose of this change was so the city
could simplify the enforcement and save tax dollars and legal fees but when | look at it, it appears that the city
is solving that problem by transferring the city’s current responsibilities and current legal expenses onto the
landlord. I’ve been a landlord for 60 years and have never had any kind of a citation but we had a bad tenant
and the fire Marshall and the code enforcement people; the building was built in 1875 and they found loose
windows and weather stripping that had to be done. They found some trash in one of the hallways and
missing smoke detectors which the tenant did but we got blamed. The court officer said well | can call the
police and the police will come and arrest the tenant for removing the smoke detector. We get fines for the

Jim Donchess
Mayor e City of Nashua

To: Board of Aldermen
From: Mayor Jim Donchess

Date: 2/7/19

Pursuant to NRO 5-127.1D Capital Equipment reserve Fund, which states: “During that fiscal year, the

Although the cost this particular purchase i is under the CERF threshold, and. the item is: not part of the
CERF schedule, CERE purchases: for FY2019 are under budget bya proximately $350, ogo a

lam requesting the concurrence and approval of the full Board of Ald@rmen: for the purchase
replacement of the Payroll De ja Formax| EL 2002 Auto e | Pressure Sealer using
available CERF funds ee wees :

Cc ass
Sue Lovering, Legislative Affairs M
Larry Budreau, Human Resources: Directo :

Peter Donovan, Payrall Manager “
David Fredette, Treasurer/Tax Collector = .-~

229 Main Street + PO Box 2019 + Nashua, New Hampshire 03061-2019
603.589.3260 * fax 603.594.3450 * NashuaMayor@NashuaNH.gov
www. NashuaNH.gov

Ana

PETITION
FOR
STREET ACCEPTANCE

TO THE HONORABLE BOARD OF ALDERMEN OF THE CITY OF NASHUA:

Pursuant to the Nashua Revised Ordinances, Chapter 285, Article Ill, Sections 21-22, the
undersigned requests that the following described portion of:

PINE & CENTRAL STREETS

Said Pine Street is 40.00 feet wide and Central Street is 70.00 feet wide. A portion of the south side of Central
Street and the east side of Pine Street to be added to the Right of Way of the City of Nashua. As depicted on
olan entitled “City of Nashua Plan for Parcel 83-80 40 Pine Street“ Prepared for the City of Nashua, By the
Land Surveyor for the City of Nashua, Dated May 31, 2018 and recorded at Hillsborough County Registry of
Deeds plan #

To be accepted for public use and maintenance:

POINT OF BEGINNING AT A DRILL HOLE SET ON THE SOUTHEASTERLY SIDE OF CENTRAL STREET,
SAID POINT THE PROPERTY CORNER OF LOT 83-79 AND NOW OR FORMERLY HINCH CROWLEY
REALTY, THENCE

S17°22'47’E A DISTANCE OF 2.0 FEET TO A DRILL HOLE SET, AT THE NORTHEASTERN POINT OF
THE LOT 83-80 AND NOW OR FORMERLY CITY OF NASHUA AND LOT 83-79 AND NOW OR FORMERLY
HINCH CROWLEY REALTY, THENCE

$71°07'13’W A DISTANCE OF 27.69 FEET TO A DRILL HOLE SET, AT THE ANGLE POINT OF LOT 83-80
NOW OR FORMERLY CITY OF NASHUA, THENCE

$43°51'17”W A DISTANCE OF 22.07 FEET TO AN IRON PIN SET, AT THE ANGLE POINT OF LOT 83-80
NOW OR FORMERLY CITY OF NASHUA, THENCE

S71°54’57’°W A DISTANCE OF 3.66 FEET TO AN IRON PIN SET AT PINE STREET, AT THE PROPERTY
CORNER OF LOT 83-80 NOW OR FORMERLY THE CITY OF NASHUA, THENCE

N18°05'03”W A DISTANCE OF 12.06 FEET TO A DRILL HOLE SET AT THE INTERSECTION OF PINE
STREET AND CENTRAL STREET, THENCE

N71°07'13’E A DISTANCE OF 50.85 FEET TO AN IRON PIN AT THE POINT OF BEGINNING.

THE AREA OF THE PARCEL TO BE ADDED TO THE RIGHT OF WAY IS 237 S.F.

PETITION/STREET ACCEPTANCE:

The street acceptance is being petitioned by: )

i [as fie Meecacst! 9)

PETITIONER >

| certify that | have received a Mylar showing the limits of the street to be accepted and that said
street = been constructed in accordance with the approved plan.

E ent. 13, 2018 bh doh ev
DATE CITY ENGINEER
Petition introduced at Board of Aldermen Meeting JUNE 26, 2018
DATE
Public Hearing conducted by the Committee on Infrastructure:
JULY 25, 2018 7:00 P.M. ALDERMANIC CHAMBER
DATE TIME PLACE

Notice of this hearing was sent out to all abutters of that portion of the street for which acceptance
was requested, as listed on the attached list.

The foregoing petition was granted by the Board of Aldermen and Mayor on ‘AUGUST 14, 2018
DATE

Attest:

AUGUST 14, 2018
DATE

Qu

/ rr.
PUTY CITMSYERK

DUE TO LACK OF ABUTTER NOTIFICATION PETITION RESUBMITTED TO THE BOARD OF ALDERMEN

Petition introduced at Board of Aldermen Meeting

Public Hearing conducted by the Committee on Infrastructure: a

DATE TIME PLACE

Notice of this hearing was sent out to all abutters of that portion of the street for which
acceptance was requested, as listed on the attached list.

The foregoing petition was granted by the Board of Aldermen and Mayor on

DATE