Search

LEGISLATIVE YEAR 2020

RESOLUTION: R-20-078
PURPOSE: Authorizing Pennichuck Corporation to renew and extend its
line of credit with TD Bank, N.A.
ENDORSERS: Alderman-at-Large Lori Wilshire
COMMITTEE
ASSIGNMENT:
FISCAL NOTE: None.
ANALYSIS

This resolution approves the proposal by Pennichuck Corporation to renew and extend its line of
credit with TD Bank, N.A. as described in the resolution.

Pennichuck has separately provided additional information on the proposal to the Board of
Aldermen.

Article [IX (3) of Pennichuck Corporation’s Articles of Incorporation and Article V §2 of the
Pennichuck Corporation’s by-laws requires City approval for the borrowing.

Approved as to form: Office of Corporation Counsel

By:

Date:

R-20-079

RESOLUTION

AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK WATER
WORKS, INC. TO ISSUE BONDS AND RENEW ITS FIXED ASSET LINE OF CREDIT
WITH TD BANK, N.A.

CITY OF NASHUA

In the Year Two Thousand and Twenty

WHEREAS, the City of Nashua is the sole shareholder of Pennichuck Corporation
(“Pennichuck’”) and each of its subsidiaries;

WHEREAS, Article IX (3) of the Articles of Incorporation of Pennichuck and Article V
§2 of the by-laws of Pennichuck require the approval of the sole shareholder (the City of
Nashua) for Pennichuck to create, incur, assume, or guarantee any indebtedness for borrowed
money, which includes contracting a loan on behalf of Pennichuck or its subsidiaries; and

WHEREAS, Pennichuck Water Works, Inc. (“PWW’) is a regulated New Hampshire
public water utility, and is a wholly owned subsidiary of Pennichuck which, in turn, is wholly
owned by the City of Nashua.

NOW, THEREFORE, BE IT RESOLVED by the Board of Aldermen of the City of
Nashua that the City approves allowing PWW to issue up to a total of $57,500,000 in an
aggregate principal amount of tax-exempt AMT bonds and/or other borrowings to raise proceeds
for the following purposes: (1) to finance up to $55,750,000 of PWW’s cost of constructing,
reconstructing, and replacing infrastructure, equipment, vehicles and all other fixed assets of the
company for the years 2020-2024; and (2) to fund up to $1,750,000 of various costs of issuance
of the new bonds, including transactional costs, capitalized interest, and, if necessary and
appropriate, credit enhancements such as a debt service reserve fund or other credit measure as
may be determined by PWW in response to prevailing market conditions; and

FURTHER, BE IT RESOLVED by the Board of Aldermen of the City of Nashua that the
City approves PWW entering into a renewal of its Fixed Asset Line of Credit with TD Bank,
N.A., allowing for annual borrowings of up to $12,000,000, pursuant to a security interest in
PWW’s accounts receivable and inventory, and pledge of the stock of PWW and an assignment
of its rights under the Money Pool Agreement and Cost Sharing Agreement (both as previously
approved and in place under the oversight of the New Hampshire Public Utilities Commission),
for the purpose of providing advances to be used for interim capital projects funding for the
capital project years 2020-2024 (bond issuance years 2021-2025).

LEGISLATIVE YEAR 2020

RESOLUTION: R-20-079

PURPOSE: Authorizing Pennichuck Corporation and Pennichuck Water
Works, Inc. to issue bonds and renew its fixed asset line of
credit with TD Bank, N.A.

ENDORSERS: Alderman-at-Large Lori Wilshire

COMMITTEE

ASSIGNMENT:

FISCAL NOTE: None.

ANALYSIS

This resolution approves the proposal by Pennichuck Corporation and one of their regulated
public water subsidiaries to issue bonds and renew a fixed asset letter of credit as described in the
resolution.

Pennichuck has separately provided additional information on the proposal to the Board of
Aldermen.

Article [IX (3) of Pennichuck Corporation’s Articles of Incorporation and Article V §2 of the
Pennichuck Corporation’s by-laws requires City approval for the borrowing.

Approved as to form: Office of Corporation Counsel

By:

Date:

R-20-080

RESOLUTION

RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $44,016 FROM THE
CENTER FOR TECH AND CIVIC LIFE (“CTCL”) INTO CITY CLERK GRANT
ACTIVITY “CTCL FY20 ELECTION ADMINISTRATION”

CITY OF NASHUA

In the Year Two Thousand and Twenty

RESOLVED by the Board of Aldermen of the City of Nashua that the City of Nashua is
authorized to accept and appropriate $44,016 from the Center for Tech and Civic Life (“CTCL”),
into City Clerk Grant Activity “CTCL FY20 Election Administration” for the purpose of
planning and operationalizing safe and secure election administration for the period of 6/15/2020

through 12/31/2020.

Origination Fees:

Principal Repayment:

Prepayment:

Capitalization:

Collateral:

Gaurantee:

Documentation:

2

date of the Term Loan; and (3) on no more than 5 separate balances at any
one time.

Interest will be calculated on the actual number of days elapsed on the
basis of a year consisting of 360 days and shall be payable monthly in
arrears by the 20" day of the following month.

None.

In up to 300 consecutive monthly installments, each due on the 20° of the
month, with the first installment due on first month monthfollowing the
end of availability. The amount of each installment shall be the same
principal amount that would be due and payable if the loan was payable in
level installments of principal and interest and such schedule was
calculated using the “CoBank Base Rate” (to be defined) on the date of
the loan agreement; provided, however, that if on the date the loan is
made, the Borrower fixes the rate of interest on the entire principal
amount of the loan to the final maturity date thereof, then the rate utilized
in calculating the amortization schedule shal! be the rate of interest
accruing on the loan.

Balances bearing interest at the Weekly Quoted Variable Rate Option
may be prepaid without premium. Balances with a fixed interest rate may
be prepaid in whole or part, subject to a prepayment surcharge. The
surcharge shal! be in an amount equa! to the greater of: (1) the sum of the
present value of CoBank’s funding losses plus a yield of % of 1% on a per
annum basis or (2) $300.

The Loan will be capitalized in accordance with CoBank’s bylaws and
will be eligible for patronage.

The Loan will be unsecured: (1) except for CoBank’s statutory first lien
on all equity in CoBank; and (2) unless the Borrower desires to grants
liens to secure other debt, in which case the Borrower may grant liens to
CoBank and the holders of its other debt as long as CoBank and such
other holders share such liens pro rata and all collateral and
documentation evidencing same is approved by CoBank.

The term loan will be guaranteed by Pennichuck Corporation under the
existing guaranty agreement dated February 9, 2010 between CoBank and
Pennichuck Corporation to be amended as needed for this Loan.

CoBank's commitment is subject to the negotiation, execution, and
delivery of documentation satisfactory to CoBank and its counsel in all!
material respects. Such documentation will contain conditions precedent,
representations and warranties, covenants, events of default, remedies and
miscellaneous other provisions. Without limiting the foregoing, the

LEGISLATIVE YEAR 2020

RESOLUTION: R-20-080

PURPOSE: Relative to the acceptance and appropriation of $44,016 from
the Center for Tech and Civic Life (“CTCL”) into City Clerk
Grant Activity “CTCL FY20 Election Administration”

SPONSOR(S): Mayor Jim Donchess
COMMITTEE
ASSIGNMENT:
FISCAL NOTE: Fiscal impact is a $44,016 grant to be used for a specific
purpose.
ANALYSIS

This resolution authorizes the City to accept and appropriate funds from the Center for Tech and
Civic Life into City Clerk Grant Activity “CTCL FY20 Election Administration” for the purpose
of planning and operationalizing safe and secure election administration for the period of
6/15/2020 through 12/31/2020.

Approved as to account Financial Services Division

structure, numbers,

and amount: By:

Approved as to form: Office of Corporation Counsel
By:

Date:

R-20-081

RESOLUTION

APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT
BETWEEN THE NASHUA BOARD OF POLICE COMMISSIONERS AND NASHUA
POLICE COMMUNICATION EMPLOYEES N.E.P.B.A. LOCAL 125, I.U.P.A., AFL-CIO
FROM JULY 1, 2019 THROUGH JUNE 30, 2023 AND AUTHORIZING A RELATED
TRANSFER OF $186,145

CITY OF NASHUA

In the Year Two Thousand and Twenty

RESOLVED by the Board of Aldermen of the City of Nashua that the cost items of the
attached collective bargaining agreement between the Nashua Board of Police Commissioners
and the Nashua Police Communication Employees, N.E.P.B.A. Local 125, LU.P.A., AFL-CIO
are approved. The collective bargaining agreement covers the period from July 1, 2019 through
June 30, 2023.

In addition, this resolution authorizes the transfer of $186,145 from Department 194,
Contingency, Account #70150 “Contingency for Negotiations” into Department 150, Police,
Account #51900 “Payroll Adjustments” for the purpose of funding FY2021 base salary
adjustments contained in the agreement.

LEGISLATIVE YEAR 2020
RESOLUTION: R-20-081

PURPOSE: Approving the cost items of a collective bargaining agreement
between the Nashua Board of Police Commissioners and
Nashua Police Communication Employees N.E.P.B.A. Local
125, L.U.P.A., AFL-CIO from July 1, 2019 through June 30,
2023 and authorizing a related transfer of $186,145

ENDORSER(S): Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd

COMMITTEE
ASSIGNMENT:

FISCAL NOTE: The cost analysis is attached.

ANALYSIS

This resolution approves the cost items of a collective bargaining agreement between the Nashua
Board of Police Commissioners and Nashua Police Communication Employees N.E.P.B.A.
Local 125, I. U.P.A., AFL-CIO. The Agreement has a term of three years, from July 1, 2019
through June 30, 2023. The board of aldermen must vote whether or not to approve the cost
items of this contract within thirty days of receipt. RSA 273-A:3 II(c). The resolution also
authorizes the transfer of funds from “Contingency for Negotiations” into “Police-Payroll
Adjustments” to fund the FY2021 base salary adjustments contained in the collective bargaining
agreement.

Charter Sec. 53 permits the Board of Aldermen to transfer any unencumbered appropriation
balance or any portion thereof from one department, fund or agency to another.

NRO & 5-130, H provides that “when proposed legislation to transfer or reappropriate a
particular appropriation or portion thereof has had its first reading, such funds shall not be
expended or transferred while the legislation is pending”.

Approved as to account Financial Services Division

number and/or structure,

and amount: By:

Approved as to form: Office of Corporation Counsel
By:

Date:

City of Nashua
Police Communications Contract Analysis

Description
Number of Employees in Analysis

Base Pay

% Increase in Base Pay

$ Increase in Base Pay

One Time Base Pay Adjustments

Total Base Pay
Real Annual % Increase over Prior Year

Other Salary Costs
Overtime
Longevity
Additional Holiday Pay Essential Personnel
Educational Benefits
Total Other Salary Costs
$ Change over Prior Year
Real Annual Increase over Prior Year

Total Base Pay and Other Salary Costs
$ Change over Prior Year
% Change over Prior Year

Retirement Costs
Pension (NHRS - FY19 - 11.38%; FY20 & 21- 11.17%; FY22 & 23 - 14.06% )
FICA and Medicare (7.65%)

Total Retirement Costs

$ Change over Prior Year

% Change over Prior Year

Insurance Benefits Costs:

Medical Insurance Costs (See Notes Below)
Less: Employee Contributions (20%)
Subtotal - Medical Costs to City

Dental Insurance Costs (2% Inc in FY22 and FY23)

Life Insurance Costs (Increase based on Real Wage Increases)
Total Insurance Benefits Costs

$ Change over Prior Year
% Change over Prior Year

Total Costs

$ Change over Prior Year

% Change over Prior Year

Average Annual Total Compensation Package
Average Annual Increase per Employee
Average Percentage Increase per Employee

Medical Insurance Notes:

9/22/2020

FY19 FY20 FY21 FY22 FY22
21 21 21 21 21
870,365 $ 889,339 $ 1,020,940 1,039,470
2.18% 1.81% 2.00%

18,974 18,529 20,788

131,601

870,365 889,339 $ 1,020,940 $ 1,039,470 1,060,258
2.18% 14.80% 1.81% 2.00%

97,000 99,115 $ 113,781 $ 115,846 118,163
7,300 7,800 8,000 8,500 9,300
27,000 27,589 31,671 32,246 32,891
1,200 1,200 1,200 1,200 1,200
132,500 135,703 $ 154,652 $ 157,792 161,554
3,203 $ 18,949 $ 3,140 3,762
2.42% 13.96% 2.03% 2.38%

1,002,865 1,025,042 $ 1,175,593 $ — 1,197,262 4,221,812
22,177 $ 150,550 $ 21,669 24,550
2.21% 14.69% 1.84% 2.05%

113,989 114,363 $ 131,180 $ 168,166 171,618
76,627 78,324 89,841 91,499 93,377
190,617 192,687 $ 221,021 $ 259,665 264,995
2,070 $ 28,334 $ 38,644 5,330
1.09% 14.70% 17.48% 2.05%

239,250 267,135 $ 304,065 $ 329,910 357,952
(47,850) (53,426) (60,812) (65,982) (71,590)
191,400 213,709 $ 243,253 $ 263,928 286,362
11,759 11,759 15,391 15,699 16,013
1,183 1,183 1,488 1,515 1,545
204,342 226,651 $ 260,132 $ 281,142 303,920
22,309 33,481 21,010 22,778
10.9% 14.8% 8.1% 8.1%

1,397,824 1,444,380 $ 1,656,745 $ 1,738,069 4,790,727
46,556 $ 212,365 $ 81,324 52,658
3.3% 14.7% 4.9% 3.0%

66,563 68,780 $ 78,893 $ 82,765 85,273
2,217 $ 10,113 $ 3,873 2,508
3.3% 14.7% 4.9% 3.0%

Medical Insurance Costs (Assumes 11.7% Inc (FY20) 5.6% Inc (FY21) 8.5% for each year (FY22 - FY23)

FY2021 Subsciber Distribution: 13 HDHP with H.S.A., 4 HMO, 2 Waived

COLLECTIVE BARGAINING AGREEMENT

BETWEEN

NASHUA BOARD OF POLICE COMMISSIONERS

AND

NASHUA POLICE COMMUNICATION EMPLOYEES
N.E.P.B.A. LOCAL 125, |.U.P.A., AFL-CIO

-FY2017, FY2018, FY20149FY2020, FY2021, FY2022, FY2023
duly, 2016—June-30;2049July 1. 2019 — June 30, 2023