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Fred S. Teeboom
24 Cheyenne drive
Nashua, NH 03063

(603) 889-2316

fredtee@comcast.net
April 23, 2019

Lori Wilshire, President Board of Aldermen
Members of the Board of Aldermen

Mayor Donchess

City of Nashua, NH

Ref: (1) Communications on the BoA April 23, 2019 Agenda: from David Villiotti, Executive Director
Nashua Children’s Home, subject “Clarification of Mr. Teeboom’s Testimony at the April 8, 2019
Human Affairs Committee Public Hearing regarding the Nashua Children’s Home.”

(2) Spread Sheet, Analysis of CDBG and HOME funding, dated April 7, 2019
Dear President Wilshire

On your Agenda this evening under Communications for “Procedural Action” is a letter wherein the
Executive Director of the Nashua Children’s Home claims I gave false or erroneous testimony before the
Human Affairs Committee during the Public Hearing on April 8, 2019 concerning CDBG funding (ref.1)

] gave testimony during this Public Hearing wherein I summarized the applications submitted for CDBG
funding of $803,000 and HOME funding of $398,000 in a detailed spread sheet which you'll find
attached to the Minutes of this Public Hearing (Ref. 2), and also enclosed with this letter.

1 concluded that the applications were not adequately reviewed and validated by the Nashua Urban
Programs Department or by the Human Affairs Committee. On my direct question to the committee, “Do
you review these applications,” acting Chairwoman Caron stated “NO.” (see page 8 of the minutes).

For example, I determined that the Nashua Urban Programs Department collects $252,000 of the
$803,000 in CDBG funding for the combined “Administration” and “Project Delivery”, representing a
31% management fee, well in excess of the 20% HUD limit.

I cited several applicants, including $250,000 for repairing the roof of the City of Nashua’s Court Street
building. Together with the management fee, nearly 2/3 of the entire CDBG grant was requested by the
city. To its credit, the Human affairs Committee rejected the Court Street request.

I noted that the Executive Director of Entrepreneurship for All, a non-profit with an agency budget of $4
million serving 100 clients, earns a compensation of $185,000 and its Program manager earns $145,000.
I find that excessive compensation.

I asked the committee a few questions about the Nashua Children’s Home. The application listed 12
Nashua children to benefit from a request for $45,600 to replace windows at its Concord home. No one on
the committee could tell me how many children were served for its $5.1 million budget

The letter on your Agenda from Mr, Villiotti clarifies that Nashua Children’s Home serves 85 children.
With a budget of $5.1 million that means the support for each child costs, on average, $60,000. Is this
standard for these services?

The Nashua Children’s Home CDBG application states total compensation, salaries plus benefits, to be
$4.0 million. The letter from Mr. Villiotti clarifies that he employs a full-time staff of 70. That means the
employees, on average, earn a compensation of about $57,000. Is this standard for these services?

The application does not state Mr. Villiotti*s compensation; neither does Mr. Villiotti’s letter. Consulting
the Nashua Children’s Home Form 990 Non-Profit IRS filing I determined that Mr. Villiottis’
compensation in year 2017 was $139,129, It seems Executive Directors of non-profits are compensated a
great deal of money from their charitable grants, but none except Entrepreneurship for All reported this
on their CDBG applications.

Mr. Villiotti claims that if the Nashua children’s Home did not exist, the taxpayers of Nashua are “on the
hook” for $47,411 per student. He does not provide the basis for this figure, but I note in his CDBG
application and Form 990 filing that NH state and school district funding amount to about 85% of his
budget. This funding does not disappear when the Nashua Children’s Home goes away but would be
assigned to another caretaker, so I would consider this statement to be a self-serving misrepresentation.

I have done the research from available data, and intend to forward my findings to the HUD Regional
Office in Boston for an audit of Nashua’s administration of CDBG funding.

I request this letter be made part of the minutes of this evening’s board meeting.

Sincerely,

((

Fred& Teebo

Encl.: Spread Sheet, Analysis of CDBG and HOME Funding Applications, Fred Teeboom, April 7, 2019

R-19-125 Analysis of CDBG and HOME Funding

Fred Teeboom 7 April 2019

=e

Organization/ Clients Project Agency FY20 salaries Director Request FY20 Request FY20 t
Name Served Budget Budget & benefits Comp. Task Award commen
Entrepeneurshp |40¢8 <30%AMI Exec Dir. 185K Excessive
for All 40ea 31%-50%AMI $592,000 $4.0M $2.9M Prog Mgr 145K micro enterprises $40,000 $40,000 Conaceineation
20ea 51%-80%AMI p atio
888ea <30%AMI Behind lot
Boys & Girls Club |428ea 31%-50%AMI | $140,000 $3.3M $2.0M 222 safes $40,000 $20,000 rehab
219ea 51%-80%AMI
Nashua Children's window .
22?
Hatie 12ea <30%AMI $45,600 $5.1M $4.0M 2? 7 replatenieint $45,600 $25,000 repair
358ea <30%AMI
Nashua PAL |21ea 31%-50%AMI $30,050 0.6M $0.2M 2??? fire safety $30,050 $20,000 repair
tea 51%-80%AMI
Nashua Soup a 299 asbetos
Kitchen & Shelter cpap ear gee (ss it $7.0M —s remediation $330,550 $75,000 rehab
Opportunity ann 99> accessiblity
netwaks eet $82,453 $3.3M $2.7M 227 iniproventeats $82,453 $40,000 rehab
250ea <30%AMI
PLUS Co. Oea 31%-50%AMI $77,500 12.7M $8.5M 22? HVAG replacement $77,500 $29,071 repair
74ea <30%AMI Heating system
Youth Council |18ea 31%-50%AMI | $57,806 $0.8M $0.6M 22? = hacet $57,806 $25,000 repair
Gea 51%-80%AMI P
low income : repair/
22? 22? 22?
Dan Stevens faniniesnters $27,660 2277 227 227 roof repair $27,660 $0 fanlordtreen.
Nashua , repair/
22? 22? 22? 22?
Gouirt Strack 227 $540,000 2?7 227 227 roof repair $250,000 $0 sublie blog,
Public Services | low-mod income | Grants for eligible activities through Citizens Advisory Cmt. (CAC) $98,700 $98,700 | 15% of $658,000
Housing Improve. : Minor rehab incl. code & safety corrections, essential repairs, accessibility. Grants for 0% loans &
(HIP) owner occupied |.,,i,.0, emergency repairs up to $5,000. $75,000 $75,000 emerg. grants
Rental Rehab : Essential repairs of residential rental properties containing 1-8 units. Owners provide
(pilot program) rental occupied | 10, match. Priority: French Hill, Crown Hill & Tree St. $61,785 $54,894 Oe ene
: 17% of grant
UPD CDBG Admin grant reports, etc $137,600 $137,600 (20% limit)
ea ae reviews, bid specs, construction management, etc $115,000 $115,000 14% of grant
. : hg to Housing
201 =
Contingency UPD letter April 4, 2019 $47,409 Improve't (HIP)
Total CDBG Funding $1 469,704 $802,674 54.6% of
requests
CHDO private non-profit organization to develop affordable housing $59,700 15% of grant
mandatory
Housing Devel. rehab or conversion to create affordable rental and/or home owner housing $298,500
Home Admin tech assistamnce, specs, reviewe, reports,etc $39,800] 10% of grant
Total HOME Funding $398,000

City of Manchester
A Resolution

WHEREAS, working people are entitled to all wages they have earned; and

WHEREAS, some employers seeR to minimize 2 labor costs by withholding wages from workers or
committing payroll fraud; and

WHEREAS, wage theft occurs when workers are not paid all their wages, denied minimum wage or
overtime pay they are due, are not paid at afl for the work they perform, their tips are stolen, or they
are called independent contractors when they are actually employees; and

WHEREAS, worker misclassification ts a deceptive effort by bad-acting employers to purposely
identify workers as independent contractors to avoid paying employment-related expenses such as
unemployment insurance and workers’ compensation; and

WHEREAS, misclassified workers are robbed of basic workplace protections under federal and state
law which have protected employees for more than a century, including the National Labor Relations
Act, the Occupational Safety and Health Act and the Americans with Disabilities Act; and

WHEREAS, by this unlawful activity, bad-acting employers save nearly 30% on worker-related
expenses due to misclassification, forcing employers who play by the rules to compete at a
disadvantage;

NOW, THEREFORE, BE IT RESOLVED, that I, Joyce Craig, Mayor of the City of Manchester,
do hereby state my support for Senate Bill 151 to give the NH Department of Labor the authority to
act immediately to protect workers from being taken advantage of and to hold employers accountable.
for deceptive labor practices; and

BE IT FURTHER RESOLVED, that I, Joyce Craig, Mayor of the City of Manchester, do hereby
oppose any deceptive practice by employers that resulis in not paying full wages due to their employees
or failing to secure workers’ compensation coverige for their employees;

And that this resolution be duly signed by the Mayor of Manchester.

Matthew P Norman City CR

aented on: A At ' | | 5 . 2019

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2015 and 2014

(in thousands)
2015 2014

Financing Activities:

Borrowings (payments) on line of credit, net $ - $ (1,966)

Payments on long-term debt (42,484) (3,036)

Contributions in aid of construction 132 78

Proceeds from long-term borrowings 28,098 49,935

Debt issuance costs (232) (1,275)

Dividends paid (278) (277)
Net cash provided (used) by financing activities (14,764) 43,459
Increase (Decrease) in cash and cash equivalents (1,741) 1,949
Cash and cash equivalents, beginning of period 2,987 1,038
Cash and cash equivalents, end of period $ 1,246 $ 2,987

Supplemental Disclosure on Cash Flow and Non-cash Items
For the Years Ended December 31, 2015 and 2014 (in thousands)

2015 2014
Cash paid during the period for:
Interest $ 9,99] $ =. 9,809
Income taxes 233 93
Non-cash items:
Contributions in aid of construction 2,128 2,586
Forgiveness of debt 77 75

The accompanying notes are an integral part of these consolidated financial statements.

AGENDA MEETING OF THE BOARD OF ALDERMEN APRIL 23, 2019

1. PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER

2. PRAYER OFFERED BY CITY CLERK PATRICIA PIECUCH

3. PLEDGE TO THE FLAG LED BY ALDERMAN LINDA HARRIOTT-GATHRIGHT
4. ROLL CALL

5. REMARKS BY THE MAYOR

6. RESPONSE TO REMARKS OF THE MAYOR

7. RECOGNITIONS

8. READING OF MINUTES OF PREVIOUS MEETINGS AND PUBLIC HEARINGS

Board of Aldermen.. ; beet dee estes eeeneees 04/09/2019
Special Board of Aldermen Public Hrg: R 19- 4127. a 7 04/15/2019
Public Hearing conducted by Human Affairs Committee: R 419 126. beeee 04/08/2019
Public Hearing conducted by PEDC: Amended O-19-038.. bese 04/16/2019

9. COMMUNICATIONS REQUIRING ONLY PROCEDURAL ACTIONS AND WRITTEN REPORTS
FROM LIAISONS

From: David Villiotti, Executive Director, Nashua Children’s Home
Re: Clarification of Mr. Teeboom’s Testimony at the April 8, 2019 Human Affairs Committee
Public Hearing regarding the Nashua Children’s Home

From: Mayor Jim Donchess
Re: Administrative Services Director and Division

9(a). PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED UPON
THIS EVENING

9(b). COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Larry D. Goodhue, CEO/CFO, Pennichuck Corporation

Re: Annual Meeting of Sole Shareholder

e Pennichuck Special Water Cmte Recommends: Election of C. George Bower, Jay N. Lustig,
John D. McGrath, Preston J. Stanley, Jr., Deborah Novotny

10. PETITIONS
11. NOMINATIONS, APPOINTMENTS AND ELECTIONS

Appointments by the Mayor

12. REPORTS OF COMMITTEE

Budget Review Committee... ............ 0.0 cece cette eeteeeesteeeees 04/04/2019
Budget Review Committee... ............ 0.0 cece cette eee eeeeteeeeeseees 04/10/2019
Budget Review Committee... ............... cece eee eeeeeeeeeeeeeees 04/15/2019
Finance Committee... bee cee dee cee teste tee tee teste seettstetesteeseeee 04/17/2019
Human Affairs Committee .. beed eet cet eet tet etter tt tseeseetessesses. 04/08/2019

Pennichuck Water Special COMMItCC. eee cece cece eee 04/17/2019

Special Personnel/Administrative Affairs Committee................... 04/15/2019
Planning & Economic Development Committee......................... 04/16/2019

13. CONFIRMATION OF MAYOR'S APPOINTMENTS
UNFINISHED BUSINESS — RESOLUTIONS

R-18-073, Amended
Endorsers: Alderman-at-Large Brian S. McCarthy
Alderwoman-at-Large Shoshanna Kelly
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Jan Schmidt
Alderman Tom Lopez
Alderman-at-Large Brandon Michael Laws
Alderwoman Mary Ann Melizzi-Golja
PROPOSING AN AMENDMENT TO THE CITY CHARTER RELATIVE TO FILLING VACANCIES
ON ELECTED BOARDS BY MAJORITY VOTE OF THE REMAINING MEMBERS OF THAT
BOARD
e Personnel/Administrative Affairs Committee Recommends: Final Passage with Proposed
Amendments

R-19-118

Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.

Alderman Linda Harriott-Gathright

Alderman Richard A. Dowd

Alderman Patricia Klee

Alderman-at-Large Brandon Michael Laws

Alderman Tom Lopez

Alderman June M. Caron

Alderwoman Mary Ann Melizzi-Golja

Alderman Jan Schmidt

Alderman-at-Large Lori Wilshire
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF UP TO $218,486 FROM THE
STATE OF NEW HAMPSHIRE DEPARTMENT OF HEALTH AND HUMAN SERVICES INTO
TRANSIT GRANT ACTIVITY “FEDERAL TRANSIT AUTHORITY (“FTA”) OPERATING GRANT”
e Human Affairs Committee Recommends: Final Passage

R-19-121
Endorsers: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Linda Harriott-Gathright
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman Tom Lopez
Alderman June M. Caron
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large David C. Tencza
Alderman Jan Schmidt
Alderman-at-Large Lori Wilshire
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $43,113 FROM THE UNITED
STATES DEPARTMENT OF JUSTICE INTO POLICE GRANT ACTIVITY “2018 JUSTICE
ASSISTANCE GRANT (MULTI-JURISDICTIONAL)”
e Human Affairs Committee Recommends: Final Passage

R-19-127
Endorsers: Mayor Jim Donchess
Alderman-at-Large Lori Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Linda Harriott-Gathright
Alderman Richard A. Dowd
Alderman-at-Large Brandon Michael Laws
Alderman Tom Lopez
Alderwoman-at-Large Shoshanna Kelly
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large David C. Tencza
Alderman Jan Schmidt
Alderman-at-Large Ben Clemons
AUTHORIZING THE MAYOR AND CITY TREASURER TO ISSUE BONDS NOT TO EXCEED
THE AMOUNT OF TWO MILLION EIGHT HUNDRED THOUSAND DOLLARS ($2,800,000) FOR
POLICE DEPARTMENT HEATING, VENTILATION, AND AIR CONDITIONING SYSTEM (HVAC),
AND WINDOW IMPROVEMENTS
e Budget Review Committee Recommends: Final Passage
e Also assigned to Board of Police Commissioners: Favorable Recommendation Issued 4/18/2019

R-19-129
Endorsers: Mayor Jim Donchess
Alderman-at-Large Ben Clemons
Alderwoman Mary Ann Melizzi-Golja
Alderwoman-at-Large Shoshanna Kelly
Alderman June M. Caron
Alderman Tom Lopez
Alderman-at-Large Brandon Michael Laws
Alderman Patricia Klee
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO CONTRACTS WITH NASHUA
COMMUNITY COLLEGE, RIVIER UNIVERSITY, TOWN OF HUDSON, TOWN OF MERRIMACK,
SOUHEGAN VALLEY TRANSPORTATION COLLABORATIVE AND THE PLUS COMPANY FOR
TRANSIT SERVICES
e Finance Committee Recommends: Final Passage

R-19-132
Endorser: Mayor Jim Donchess
Alderwoman-at-Large Shoshanna Kelly
AUTHORIZING THE MAYOR TO ENTER INTO A SUCCESSOR “CONCESSION AGREEMENT”
WITH GRANITE DIAMOND, LLC
e Finance Committee Recommends: Final Passage

R-19-133

Endorsers: Mayor Jim Donchess
Alderwoman Mary Ann Melizzi-Golja
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman Tom Lopez
Alderwoman-at-Large Shoshanna Kelly
Alderman-at-Large David C. Tencza
Alderman Jan Schmidt

AUTHORIZING THE MAYOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH

SPECTACLE MANAGEMENT, INC.

e Finance Committee Recommends: Final Passage

Board of Aldermen 09-10-2019 Page 28
Alderman O’Brien

Madam President, may | remove the motion please?

President Wilshire

| need a chance to speak.

Alderman O’Brien

Oh ok excuse me then. Then | concede my motion.

President Wilshire

So | equally feel that the students have presented a great project here. It was a great presentation, they
were really passionate about it but on the other hand so were the people from the Downtown Improvement
Committee passionate about the work they’ve been doing all this time downtown. What | would like to see
is this study that the students and the downtown people work together on so that it is beneficial to
everyone. Like Alderman Clemons says, if we give it one group, why don’t we just make it all free parking
for everybody. We are singling out one group and yes you are passionate about and yes the downtown
committee is passionate about it. But | don’t understand why the two can’t go through the study together
and hopefully come out with an outcome that works for everyone. So | will not be supporting it this evening
and | hope that the downtown study comes through and says, “Hey we can do this for this population” or
maybe the Library comes up with something, some controlled parking that you have to put your Library
Card in to get access to the parking lot.

Alderman Gidge

| want the money for the parking, | want people in the Library. If you really mean this, you come back to us
and bring back a picture of several hundred people standing in front of the Library and that may change the
minds of a lot of people here. More people downtown will soend more money. That may make up for it. So
that’s how | feel, | will vote for it.

Alderman Lopez

| feel like it is fundamentally unfair to keep telling the students that they need to do more work when they
did the work and they brought the presentation. The Downtown Improvement Committee did not review
their presentation, they didn’t even see the Ordinance, they don’t have minutes posted which is something
that | brought up in the last meeting and they still don’t have minutes posted. | think the students have
done their part here. | think the Downtown Improvement Committee is not universally in charge of parking
policy in Nashua, | think that’s our role. We can’t keep acting as though we are not doing something
actively here to prevent students from this coming forward. Because they have designed a plan that’s
workable and can work; we may talk about the rules of the road but we are literally the ones who set most
of the rules of the road.

| think if we are going to be honest, we need to be at least respectful of the students and the work that
they’ve put in and really give it the credibility it deserves. Because they did study the problem, | followed up
myself by looking at the parking spaces and | do not believe that everyone else has looked quite as closely
have. | think we are just responding to some comments that were made by two citizens on a Downtown
Improvement Committee.

President Wilshire

Alderman Lopez | don’t think anyone here has been disrespectful to any students.

Board of Aldermen 09-10-2019 Page 29
Alderman Lopez

| disagree.

President Wilshire

| don’t think anyone has Alderman Lopez. We can have a difference of opinion and that’s ok. Any group

that comes before us that makes a presentation doesn’t mean we have to vote in favor, that’s our
prerogative as a Board. | don’t think anyone has been disrespectful to the students.

Alderman Lopez

| don’t think it’s fair to say that the presentation that they made and the research that they did has the same
weight as a Committee is made up of adults, is obligated by City Ordinance to be posting minutes and isn’t
that so there’s no explanation of what they are doing. Whereas the students have been coming and doing
this in public and in full view of the public.

Alderwoman Kelly
I'd like to move the question please.
A viva voce roll call was taken which resulted as follows:
Yea: Alderman Gidge, Alderman Laws, Alderman Lopez
Alderman Caron, Alderwoman Kelly, Alderwoman Melizzi-Golja,
Alderman Tencza, Alderman Schmidt, Alderman Clemons,
Alderman Wilshire 8
Nay: Alderman O’Brien Alderman Harriott-Gathright, Alderman Dowd.
Alderman Klee, Alderman Clemons, Alderman Wilshire 6
MOTION CARRIED
President Wilshire
Is there further discussion on final passage of O-19-051 as amended? Would the Clerk please call the roll?
Alderwoman Kelly
We just called the roll.
Alderman Dowd
That was to move the question.
President Wilshire
That was to move the question.

Alderman Schmidt

That was the final. Oh move the question.