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Jim Donchess
Mayor e City of Nashua

To: Board of Aldermen

From: Jim Donchess

Date: 5/17/18

Re: Independent Contract Agreement with Harbor Homes, Inc.

Pursuant to NRO § 5-74 (B), which states that a contract that extends from the current fiscal year into
succeeding fiscal year(s) in which no funds have been appropriated nor otherwise designated for this

City.

Pursuant to NRO § 5-90 (E
excess s of 91,000,000 s shi

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

@s\ THE CITY OF NASHUA "The Gate City’

Financial Services

Purchasing Department

May 10, 2018
Memo #18-141

TO: MAYOR JIM DONCHESS
FINANCE COMMITTEE

SUBJECT: INDEPENDENT CONTRACT AGREEMENT WITH HARBOR HOMES, INC. (VALUE:

$1,008,703)
DEPARTMENT:171 COMMUNITY SERVICES; FUND: GRANT FUNDS

Please see attached communication from Bobbie Bagley, Director of Public Health & Community Services
dated May 16, 2018 for the information related to this contract award.

The Director of Division of Public Health & Community Services and the Purchasing Department
recommend the award of this contract in the amount of $1,008,703 to Harbor Homes, Inc of Nashua,

NH.

A Gog

ofa

Purchasing Manager

Cc: B Bagley J Graziano

229 Main Street « Nashua, New Hampshire 03061 e Phone (603) 589-3330 e Fax (603) 589-3233

Jim Donchess
Mayor e City of Nashua

To: Board of Aldermen

From: Jim Donchess

Date: 5/17/18

Re: Independent Contract Agreement with Southern NH HIV/AIDS Task Force

Pursuant to NRO § 5-74 (B), which states that a contract that extends from the current fiscal year into
succeeding fiscal year(s) in which no funds have been appropriated nor otherwise designated for this
purpose shall be approved by the full Board of Aldermen before 1 contract shall become binding on the
City. : so

The Finance Committee app
at their May 16, 2018

Independent Cont
Manager’s Memo,
This is a three (3):

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

)) THE CITY OF NASHUA 7 ene

Financial Services

Purchasing Department

May 10, 2018
Memo #18-142

TO: MAYOR JIM DONCHESS
FINANCE COMMITTEE

SUBJECT: INDEPENDENT CONTRACT AGREEMENT WITH SOUTHERN NH HIV/AIDS TASK

FORCE (VALUE: $382,297)
DEPARTMENT: 171 COMMUNITY SERVICES; FUND: GRANT FUNDS

Please see attached communication from Bobbie Bagley, Director of Public Health & Community Services
dated May 16, 2018 for the information related to this contract award.

The Director of Division of Public Health & Community Services and the Purchasing Department
recommend the award of this contract in the amount of $382,297 to Southern NH HIV/AIDS Task Force
of Nashua, NH.

Respectfully,

Dan Kooken
Purchasing Manager

Ce: B Bagley J Graziano

229 Main Street e Nashua, New Hampshire 03061 » Phone (603) 589-3330 e Fax (603) 589-3233

APPOINTMENTS BY THE MAYOR

MAY 22, 2018
Downtown Improvement Committee
Danielle Skelley (New Appointment) Term to Expire: June 1, 2021
175 Main Street
Nashua, NH 03060
Nashua Airport Authority
David Heath (New Appointment) Term to Expire: August 31, 2020

7 Casey Circle
Nashua, NH 03063

| respectfully request that these appointments be confirmed.

Jim Donchess
Mayor

PUBLIC HEARING
MAY 17, 2018

A Public Hearing was conducted by the Board of Aldermen on Thursday, May 17, 2018, at 7:00 p.m.
at the Nashua High School North Auditorium, 8 Titan Way, Nashua, New Hampshire.

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

The prayer was offered by City Clerk Piecuch; Pledge of Allegiance was led by Alderman-at-Large
Lori Wilshire.

The roll call was taken with 14 members of the Board of Aldermen present; Alderman Caron was
recorded absent.

His Honor Mayor James W. Donchess was also in attendance.
PUBLIC HEARING
R-18-019
RELATIVE TO THE ADOPTION OF THE FISCAL YEAR 2019 PROPOSED

BUDGET FOR THE CITY OF NASHUA GENERAL, ENTERPRISE,
AND SPECIAL REVENUE FUNDS

Alderman Dowd, Chairman of the Budget Review Committee

Good evening and welcome to the public hearing on the budget. Before | introduce the Mayor to give
a brief overview of the budget, | just want to go over the ground rules for the public hearing. I’m
going to go through the various departments in the budget. If you have a question on that particular
department, please come forward to the microphone here in front and ask your question. If the
Mayor or Mr. Griffin can’t answer the question, they may ask assistance from one of their Division
Directors who are here. Please give everyone an opportunity to ask their questions and limit any
statements to a reasonable length and only on a department that’s being currently discussed. With
that, | will turn it over to the Mayor.

Mayor Donchess

Thank you very much Mr. Chair. | am glad to be here again on the public hearing on the FY Fiscal
Year 2019 budget. We just have a few slides to kind of give an overview and then, of course, we will
be available to answer questions.

So you see this is just a cover page and John will go to the next. We have discussed a little bit about
this before, Mr. Chair. There are a number of challenges that we are facing as we look forward to
Fiscal Year 2019. First of all, probably foremost we have a State mandated, State ordered property
revaluation which could and we talked about the details and there is just a little bit more about it in
here could because of the great increases our homes have seen, the increases in value over the last
5 years, the State mandated and ordered revaluation could result in a potential shift from property
taxes from commercial onto residential. If the commercial properties have not gone up as much as
residential, so that presents an over-riding challenge for us in terms of minimizing, mitigating, or
limiting the effect of the State ordered revaluation.

As the second bullet point says, we need to make some tough decisions when funding city needs.
There are many things requested by many different departments that we did not include in the
budget. There are positions in the school department, the fire department requested more
dispatchers, which | am sure would be very helpful. We certainly need more police officers and we

City of Nashua

Public Works Division
9 Riverside Street
Nashua, NH 03062

Engineering Department

9 Riverside Street
Fax (603) 589-3169

Date:

To:

From:

Ce:

Re:

MEMO

May 23, 2016
Brian S. McCarthy, President of Board of Aldermen

Stephen Dookran, P.E., City Engineer
Sonia Shahnaj, P.E., Senior Staff Engineer

Mayor Jim Donchess
Lisa Fauteux, Director of Public Works

(R-16-038) Authorizing the Mayor to enter into an Amendment to the Railroad Agreement with
the State of New Hampshire and Pan Am Railways for the purpose of replacing a railway

highway crossing on East Hollis Street

- Request for the first and second reading at the May 24, 2016 meeting

The original three-way Agreement was executed in August 2015, but the work did not proceed essentially due to
financial hurdles involving the Railroad as they were unable to allocate funding to purchase materials needed for the
project. Since NHDOT does not have a policy of paying upfront, the Railroad and the NHDOT requested the City to
bear the upfront cost of the materials approximately in the amount of $130,000.00. The City will be fully reimbursed
by NHDOT for this cost after the project is complete. The timing is critical for the following reasons:

1. According to the NHDOT, who is administering the Federal funds, if the project is not completed in the 2016
Federal funding year which ends in September 2016, the funding will no longer be available for this project. In
order to complete this project by September 2016, the construction must begin no later than middle of July

2016.

2. The project is about 95% funded by FHWA and the remaining 5% is City’s share. Should the resolution be
referred to committees for recommendations, the current schedule for aldermanic meetings will put final
approval too late for the project and the City will be in jeopardy of losing Federal funding in the amount of
$606,299.87.

3. The City must make payment to the Railroad without delay for the Railroad to order the materials with long-
lead time to start construction by the July 2016 deadline.

The crossing on East Hollis Street has been in a deteriorated condition for many years and interim repairs have not
held up. This project will not only include the needed repairs but also upgrading the crossing to meet Federal railroad
safety standards. In addition to the improvements associated with railroad crossing, the project includes improvements
to curbing, sidewalk, new pavement and striping at the intersection.

Administration
Business Office
(603) 589-3140

Street/Traffic City Parks-Recreation
Department Engineer Department
(603) 589-4750 (603) 589-3120 (603) 589-3370

Solid Waste
Department
(603) 589-3410

Wastewater
Treatment Plant
(603) 589-3560

Special Board of Aldermen Public Hearing — 5/17/2018 Page 2

have for some time because of the opioid epidemic and the resulting problems. But we tried to stick
with keeping hopefully what we have without adding too much because we want to keep the budget
very tight.

One very significant issue in the budget is always the Capital Equipment Reserve Fund or CERF. We
have funded that a $1 million dollar level and as a result have talked with departments and deferred
purchases of some items of equipment into the next year or two. | think Mr. Chair when we get to the
issue of the escrows, which is going to come up in the fall, this is an area that we need to consider
backfilling at that time, as we have in prior budget years to help to contribute money into the CERF
fund making sure that we maintain the quality of equipment that we have and a reasonable
replacement schedule.

There are some cost pressures in the budget on non-salary items, you see that in the next line item.
Probably the most notable is that there is $600,000.00 increase in our solid waste costs. As you
know, we contribute tax money into the Solid Waste Enterprise Fund. One particular cost that has
gone up considerably is the disposal of the recycled items that we have. We have a contract with
Casella who is a major hauler and they dispose of the recycling that we collect curbside as well as the
recycling that people deliver to the landfill.

In talking with Public Works, the cost of disposal of about between 5,000 and 6,000 tons of recycled
material has gone from less than $1.00 a ton in July of 2017, so that’s about 10 months ago, gone
from less than $1.00 to now $82.00 a ton, which is the current rate. So it has gone up 100 times in 10
months. We have budgeted in the budget $400,000.00 to dispose of recycled items, which if the
current rate of $82.00 a ton holds, will probably be enough. However, Casella has warned that it is
possible, the recycling market is bad, and it is possible that costs could go up more than that, in
which case we might have to look at trying to find another source of funds or some emergency
measure. But right now it looks like we have budgeted enough, even though costs have gone up as
much as | have indicated.

We are concerned about some reductions as always in State revenue. One area where we are
seeing a reduction in revenue is the School Stabilization Grant which has a very long history but it
now is about $4 million of the total in-school aid that we got. $4 million of the school aid is the
Stabilization Grant and that is being reduced by about 10% or about $400,000.00 a year so we will be
getting $400,000.00 on the Stabilization Grant less in Fiscal 19 then we do in the current year which
is Fiscal 18. Those are some of the challenges.

In terms of our strategy for this year, first | presented the budget earlier than ever before. At the first
meeting in March, just a couple years ago it was the first meeting in May and the point here is to give
the Board of Aldermen more time to consider the budget in a more comfortable manner allowing a
few months rather than 4 to 6 weeks, both because of the challenges, the complexity of the budget
and because of the fact that we have a number of Aldermen who have not been through the budget
process before. | think it made the process much more constructive to have proposed the budget
back in March.

Again, one of our strategies is to limit the budget as much as possible to make sure that the
assessment has the least possible impact so that the budget itself doesn’t result in any significant
increase in property taxes. We have also tried to maintain level services in the face of the fiscal
challenges that | have outlined.

Here is a slide that you have seen before which just outlines the potential effect of the revaluation.
This is just a model, we are trying to make sure we maximize commercial values, but as you can see
here it could result in a shift of values. Residential properties currently represent about 62.5% of the
entire assessed value of the City of $8.5 billion dollars. That could go up as high as 66% and

Special Board of Aldermen Public Hearing — 5/17/2018 Page 3

therefore result in a shift. As discussed before, we have hired KRT and we are trying to minimize that
impact.

So looking at an overview of the FY19 Budget, the proposed the budget is $262,700,000.00. The
increase over the budget that the Board of Aldermen adopted last year in FY18 is 1.6%, that is the
leanest budget we have had in the city in a long time. In terms of revenues, we are still budgeting
revenues conservatively. We expect vehicle registrations, which is a significant source of revenue, to
remain about constant with FY18. We do have a continued low interest rate environment so that the
funds that we are earning on the City’s undesignated reserve fund, other reserve funds, and all the
money that the City has in the bank at various time, the income from that is very limited. Years ago
when | was Mayor before for example, the interest income we received on our deposits was actually
multimillion dollar source of revenue, now that’s really not the case anymore.

We do, as | mentioned before face the reduction in State aid in at least one area so that is
incorporated in the budget. The lawsuit that was brought in Superior Court and which was decided by
Judge Temple, the result was from at least the opinion of Judge Temple that the current spending
cap is not enforceable as a result of being in violation of State law. However, we wanted to make
sure that people understood what the effect of this budget would have been if the spending cap were
still in effect. We are giving you, therefore, as it says for illustrative purposes only again a very tight
budget which according to the calculation of John Griffin, the CFO is about $1,083,000.00 under what
the spending cap would have been if that were still enforceable and in effect.

In any event that | think Mr. Chair that gives you an overview of the budget and we will provide the
context with which we can discuss the budget as the public hearing goes forward.

Chairman Dowd

Thank you Mayor. | am going to start calling the departments and when | do, if you have any
questions or comments about that particular department, please come up to the microphone and ask
the question. And again, if the Mayor or CFO can’t answer it, we will have somebody from the
divisions answer it. We are only going to go through them once, so when we get to that particular
department and the division, if you have a question, please come up and talk to us. There are copies
of the budget for anyone that does not have one over here on the right stage.

Sequence in Which City Department Budgets will be Discussed:

Dept Revenue Appropriations
No. (Yellow (White Section)
Section)
GENERAL GOVERNMENT
101 | Mayor's Office 65
102 | Board Of Aldermen 73
103 | Legal Department 75
107 | City Clerk’s Office 32 79
109 | Civic And Community Activities 83
Tina Andrade

Iam so sorry to be late. But I hope I haven’t missed the Human
Services part of it. Is this the time that people are allowed to
speak?

Special Board of Aldermen Public Hearing — 5/17/2018 Page 4

Chairman Dowd

We are going department by department. Which is the..?
Tina Andrade

The appropriations to non-profit organizations.

Chairman Dowd

It has come up, 109? So you can provide comments. Please
identify yourself and address, for the record.

Tina Andrade

Certainly, Iam Tina Andrade, I live as 12 Mount Laurels Drive in
Nashua and I am here representing Home Health & Hospice. Iam
here because we had just gotten the information that we have been
in the budget appropriated of a little over $26,000.00. Home
Health & Hospice care is a Visiting Nurse Association and
Hospice and we were founded in Nashua in 1883. Of course, we
are a non-profit organization. We visit people in their homes and
care for them and in the community hospice house.

Our grant proposal was for $40,000.00. Last year, we received a
little over $38,000.00 and we were very grateful for that. Because
we are a non-profit organization, our mission is to care for people
whatever their financial circumstance is. It is a challenge, but we
have always had the cooperation of the community so that we
were able to do that. We work very hard to raise the funds so that
we can take care of folks that have fallen through the insurance
cracks.

Our proposal was to care for the indigent residents of Nashua. I
have worked for the organization for 14 years and on the first day
that I took the job, I opened a note that had come to me from the
family member of a patient and it said, “you are our angels at a
time in our lives when we needed you the most”. And I never
forgot that and the note is still on my desk and I have since then
literally hundreds of notes like that.

So the appropriation, which we are very grateful for, and we were
very grateful last year to get the funds that we got, but we are
under tremendous constraints by government reimbursements.
And in fact, those reimbursements don’t really pay for the care
that we are giving folks. When we take indigent residents of
Nashua there is no money for them so it is all from fund raising
that we can actually take these patients.

Now the other thing that I think is important to note is that for-
profit health care organizations that take care of folks in the home
setting, pick and choose the patients that they will care for. We