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Board of Aldermen 6-23-2020 Page 49
Alderman Jette

Yes, thank you, Madam President. | too want to thank you and compliment you for arranging for public
comment. It was kind of disappointing that nobody from the public, | don’t know if they couldn't figure out
how to do it or just weren’t interested, just a couple of employees who took advantage of it. But thank you
for doing that.

Also, | took Alderman O’Brien’s invitation to look more closely at Manchester and | know he’s going to
accuse me of comparing apples and oranges again, maybe this is a grapefruit. When | look at the total
budget for Manchester’s Fire Department, it is $21 million dollars. Nashua’s is $27 million dollars. So we
are spending $6 million more on our Fire Department than Manchester is. | don’t pretend to know what the
significance of that is | just find it interesting. And | am sure that the Firefighters an the Union and the
Commissioners will, in the future, provide us with more data more information about wages and why they
feel that they are being unfairly compensated; and | look forward to hearing that. Thank you.

Alderman Tencza

Madam President, sorry just very quickly and | am disappointed by the comments about not having more
information about the Fire Fighter's Contract because there was a much longer public hearing where a lot
of that information was shared with us, not specifically as it relates to Alderman Jette’s concerns about
comparing the different cities and towns. But! mean I'll just say that | think the point of our meetings are
not to rehash everything that is said in the Committee meetings, but | think it would behoove members of
the Board if there is an important or something that they have questions about and look at the work that the
Committee did especially in this case where there was a negative recommendation by the Committee,
because | think that might have answered a lot of folks questions on this issue, at least. Thank you.

Alderman Cleaver

Yes, | would like to say that year after year Nashua is recognized as one of the safest cities in the country.
There’s two really good reasons for that: one is our excellent Police Department. They do a fantastic job
and everybody recognizes that. And the other reason, of course, is the Fire Department, they do an
equally great job and | am very disappointed in the outcome of the vote. | think they deserve this contract,
they negotiated in good faith with the City and we don’t want to rehash that again. But! just wanted to point
out that parity is a good thing, there’s no reason why the Fire Fighters who face the dangerous job should
not be near parity with the Police Department. | don’t think that should be a negative at all.

The other thing that | wanted to point out having created a lot of road races and events over the years, the
Police get detail money over time money a lot with construction and other things. Firefighters don’t have
that opportunity, even though they might be called out for a broken leg or whatever happens during the
event, they don’t get money for the details. That makes a lot of extra money for the Police Officers, which
they deserve. But when you look at parity, there’s a lot of different angles to look at. So thank you very
much.

President Wilshire

| just want to say that this was a difficult vote for me, I’ve always been a supporter of our Fire Department. It
wasn’t about the Fire Department, my vote — it was about the affordability of a contract, no matter whose it
was. | have the utmost respect for our Fire Department.

Alderman Harriott-Gathright

| too was sort of disappointed with the decision that was made tonight, because | remember when the Chief
talked about, you know, the training and all that our firefighters get that basically it doesn’t mean that those

other fire departments are getting that same type of training and on the job type of training as well as going

away for training.

Board of Aldermen 6-23-2020 Page 50

And | think that the equipment that they are afforded each year, because we do give equipment and
everything, that it also helps with the firefighters and what they have to do. The fact that they are also used
by other cities, they help wherever necessary, | just feel that we sort of let them down. And | do understand
the issue around money, that | do understand very well. But! also heard all the testimony over several
years how we have not given them. And with that said, | think that we all should be ashamed of ourselves
because it is just snowballing over and over again. | can’t say exactly where the money is supposed to
come from or what we need to do, but we have done an injustice to them not just this year but previous
years. Thank you.

Committee announcements:

Alderman O’Brien

Thank you, Madam President. As you know, we have a Special Board of Aldermen Meeting tomorrow
night and immediately following we are going to jump right in to Infrastructure. Many of the things that are
on the Agenda for the Special Aldermen’s Meeting will be discussed immediately afterwards in the
Infrastructure Agenda. So please, stick around. You are more than welcome. Also to the public, what is,
we are expecting a presentation from Director Marchant for renovations to the Transit Center Plaza located
at 30 Elm Street behind City Hall. The renovations will include the updates for the plaza, the transit center
building and bus platform. So any of our citizens that use that facility, please tune in tomorrow night and
catch the presentation. And the meeting is at 7:00 correct? Thank you.

Alderman Dowd

Yes, Thursday night Joint Special School Building Committee Meeting, 7:00 — on-line meeting. | just
wanted to quickly state that we have commenced work at Fairgrounds Middle School. If you by there, you
will see the construction trailer, the area has been marked off for the portables that will be needed and they
are in the back of the school and they will be starting with the new security enhancements in the front of the
school. And very shortly thereafter we will be moving over and starting at Pennichuck as well. So a lot of
work going on and we will be approving some vendors contracts Thursday night.

Alderman Tencza

PEDC will be meeting Monday night, it’s actually a public hearing to discuss the Ordinance relating to
umbrellas on Main Street.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE JUNE 23, 2020, MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED BY ROLL CALL

A viva voce roll call was taken to adjourn the Board of Aldermen meeting which resulted as follows:
Yea: Alderman O’Brien, Alderman Klee, Alderwoman Kelly, Alderman Dowd,

Alderman Caron, Alderman Clemons, Alderman Lopez, Alderman Tencza,

Alderwoman Lu, Alderman Jette, Alderman Schmidt, Alderman Cleaver,

Alderman Harriott-Gathright, Alderman Wilshire 14
Nay: 0
MOTION CARRIED

The meeting was declared adjourned at 11:06 p.m.

Attest: Susan K. Lovering, City Clerk

AMENDED
ORDINANCE O-16-021

(8) A nen Commissioner representative-of volunteer from each subcommittee
shall report its findings to the Commission as a whole. The whole
Commission’s final funding recommendations shall be determined by a
vote of the five Commissioners.”

(9) The Urban Programs Department will provide administrative assistance to
the Commission.”

All ordinances or parts of ordinances inconsistent herewith are hereby repealed.

This legislation shall take effect upon passage.

AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT, NOTICES TO BE
PROVIDED SETTING FORTH THE PROVISIONS OF THIS NONDISCRIMINATION CLAUSE.

(2) THE CONTRACTOR WILL, IN ALL SOLICITATIONS OR ADVERTISEMENTS FOR
EMPLOYEES PLACED BY OR ON BEHALF OF THE CONTRACTOR, STATE THAT ALL
QUALIFIED APPLICANTS WILL RECEIVE CONSIDERATION FOR EMPLOYMENT
WITHOUT REGARD TO RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION,
GENDER IDENTITY, OR NATIONAL ORIGIN.

(3) THE CONTRACTOR WILL NOT DISCHARGE OR IN ANY OTHER MANNER
DISCRIMINATE AGAINST ANY EMPLOYEE OR APPLICANT FOR EMPLOYMENT
BECAUSE SUCH EMPLOYEE OR APPLICANT HAS INQUIRED ABOUT, DISCUSSED, OR
DISCLOSED THE COMPENSATION OF THE EMPLOYEE OR APPLICANT OR ANOTHER
EMPLOYEE OR APPLICANT. THIS PROVISION SHALL NOT APPLY TO INSTANCES IN
WHICH AN EMPLOYEE WHO HAS ACCESS TO THE COMPENSATION INFORMATION OF
OTHER EMPLOYEES OR APPLICANTS AS A PART OF SUCH EMPLOYEE'S ESSENTIAL
JOB FUNCTIONS DISCLOSES THE COMPENSATION OF SUCH OTHER EMPLOYEES OR
APPLICANTS TO INDIVIDUALS WHO DO NOT OTHERWISE HAVE ACCESS TO SUCH
INFORMATION, UNLESS SUCH DISCLOSURE IS IN RESPONSE TO A FORMAL
COMPLAINT OR CHARGE, IN FURTHERANCE OF AN INVESTIGATION, PROCEEDING,
HEARING, OR ACTION, INCLUDING AN INVESTIGATION CONDUCTED BY THE
EMPLOYER, OR IS CONSISTENT WITH THE CONTRACTOR'S LEGAL DUTY TO FURNISH
INFORMATION.

(4) THE CONTRACTOR WILL SEND TO EACH LABOR UNION OR REPRESENTATIVE OF
WORKERS WITH WHICH HE HAS A COLLECTIVE BARGAINING AGREEMENT OR
OTHER CONTRACT OR UNDERSTANDING, A NOTICE TO BE PROVIDED ADVISING THE
SAID LABOR UNION OR WORKERS' REPRESENTATIVES OF THE CONTRACTOR'S
COMMITMENTS UNDER THIS SECTION, AND SHALL POST COPIES OF THE NOTICE IN
CONSPICUOUS PLACES AVAILABLE TO EMPLOYEES AND APPLICANTS FOR
EMPLOYMENT.

(5) THE CONTRACTOR WILL COMPLY WITH ALL PROVISIONS OF EXECUTIVE ORDER
11246 OF SEPTEMBER 24, 1965, AND OF THE RULES, REGULATIONS, AND RELEVANT
ORDERS OF THE SECRETARY OF LABOR.

(6) THE CONTRACTOR WILL FURNISH ALL INFORMATION AND REPORTS REQUIRED
BY EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, AND BY RULES, REGULATIONS,
AND ORDERS OF THE SECRETARY OF LABOR, OR PURSUANT THERETO, AND WILL
PERMIT ACCESS TO HIS BOOKS, RECORDS, AND ACCOUNTS BY THE ADMINISTERING
AGENCY AND THE SECRETARY OF LABOR FOR PURPOSES OF INVESTIGATION TO
ASCERTAIN COMPLIANCE WITH SUCH RULES, REGULATIONS, AND ORDERS.

(7) IN THE EVENT OF THE CONTRACTOR'S NONCOMPLIANCE WITH THE
NONDISCRIMINATION CLAUSES OF THIS CONTRACT OR WITH ANY OF THE SAID
RULES, REGULATIONS, OR ORDERS, THIS CONTRACT MAY BE CANCELED,
TERMINATED, OR SUSPENDED IN WHOLE OR IN PART AND THE CONTRACTOR MAY
BE DECLARED INELIGIBLE FOR FURTHER GOVERNMENT CONTRACTS OR
FEDERALLY ASSISTED CONSTRUCTION CONTRACTS IN ACCORDANCE WITH
PROCEDURES AUTHORIZED IN EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965,
AND SUCH OTHER SANCTIONS MAY BE IMPOSED AND REMEDIES INVOKED AS
PROVIDED IN EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, OR BY RULE,

AGENDA MEETING OF THE BOARD OF ALDERMEN JUNE 23, 2020

Meeting is being conducted remotely in accordance with Governor’s Emergency Order #12 pursuant to Executive
Order 2020-04

To join by Zoom meeting: https://usO2web. zoom. us//85494245358 ?pwd=cU42NUJhd2JVZ3EvOEd1Y 3pTV3RjUTO9
Meeting ID: 854 9424 5358

Password: 091623

To join by Zoom telephone: 1-929-205-6099

Meeting ID: 854 9424 5358

Password: 091623

If anybody has a problem accessing the meeting or Channel 16, please call 603-821-2049 and they will help you
connect.

1. PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER

2. PRAYER OFFERED BY CITY CLERK SUSAN K. LOVERING

3. PLEDGE TO THE FLAG LED BY ALDERWOMAN ELIZABETH LU
4. ROLL CALL

5. REMARKS BY THE MAYOR

6. RESPONSE TO REMARKS OF THE MAYOR

t. RECOGNITIONS

8. READING OF MINUTES OF PREVIOUS MEETINGS

Board of AIDErMen. ..... 0... cece ne eee nen e eee e eee dene tata tent eee eenae 06/09/2020
Special Board of AIDErMeN.......... 6. occ cece cee cee ee eee eee settee cena eetee cen eneenenens 06/10/2020
Special Board of AIDErMeN.......... 6. occ cece cee cee ee eee eee settee cena eetee cen eneenenens 06/16/2020

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

From: John L. Griffin, Chief Financial Officer/Comptroller
Re: NHRS Lower Assumed Rate of Return from 7.25 to 6.75 Percent

From: Kim Kleiner, Director of Administrative Services
Re: Health Insurance Fund and FY21 Health Insurance Enrollment by Union

From: Donna Graham, Legislative Affairs Manager
Re: Communications Received from the Public

From: John L. Griffin, Chief Financial Officer/Comptroller
Re: 7.03% Tax Rate Increase Projected for FY2022

From: Jim Donchess, Mayor
Re: Coronavirus Disease COVID-19

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

9(b). COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Tim Cummings, Economic Development Director

Re: Communication — Approval & Place on File A Contract for Great American Downtown to assist

with implementation of the Nashua Downtown Riverfront Project

From: Jim Donchess, Mayor

Re: Temporary Policy on Emergency Leave due to Coronavirus (COVID-19)— July 6, 2020

PETITIONS - None
NOMINATIONS, APPOINTMENTS AND ELECTIONS - None
10. REPORTS OF COMMITTEE
Human Affairs Committee......... 0... ccc ce cee ee eee cen ee teense ee eee eee eneee eas
Budget Review Committee. ..... 0.00. ccc cece cece eee eee een een ene ten ee ene eens
Pennichuck Special Water Committee......... 0.00 cceccece cee cece ene eens
Planning & Economic Development Committee............... 0c cee ee nee ne ees
Finance Committee... 2... ccc cece eee ee eee eee ee eae cea s ceeds bea ta teen ee eaten
11. CONFIRMATION OF MAYOR'S APPOINTMENTS - None
UNFINISHED BUSINESS — RESOLUTIONS

R-20-023, Amended
Endorsers: Mayor Jim Donchess

06/08/2020
06/10/2020
06/15/2020
06/16/2020
06/17/2020

RELATIVE TO THE ADOPTION OF THE FISCAL YEAR 2021 PROPOSED BUDGET FOR
THE CITY OF NASHUA GENERAL, ENTERPRISE, AND SPECIAL REVENUE FUNDS

e Budget ReviewCommittee Recommends: Final Passage as amended

R-20-026, Amended
Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.
Alderwoman Linda Harriott-Gathright
Alderman Patricia Klee
Alderwoman-at-Large Shoshanna Kelly
Alderman Jan Schmidt
Alderman Richard A. Dowd
Alderman-at-Large Lori Wilshire

ADOPTING THE 2020 CONSOLIDATED PLAN AND AUTHORIZING THE MAYOR TO APPLY FOR

AND EXPEND THE COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME

INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR FISCAL YEAR 2021
e Human Affairs Committee Recommends: Final Passage as amended

R-20-039
Endorser: Alderman-at-Large Lon Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman-at-Large David C. Tencza
Alderman Richard A. Dowd

AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK WATER WORKS, INC. TO ISSUE

TAXABLE BONDS OF UP TO $75,000,000
e Pennichuck Special Water Committee Recommends: Final Passage

R-20-040
Endorsers: Mayor Jim Donchess
Alderman Linda Harriott-Gathright
Alderman-at-Large David C. Tencza
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman Jan Schmidt
AUTHORIZING THE MAYOR AND CITY TREASURER TO BORROW FROM THE NEW HAMPSHIRE
DEPARTMENT OF ENVIRONMENTAL SERVICES STATE REVOLVING LOAN FUND AN ADDITIONAL
AMOUNT NOT TO EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) FOR
PUMP STATION UPGRADES
e Budget Review Committee Recommends: Final Passage

R-20-041
Endorsers: Alderman-at-Large David C. Tencza
Alderman-at-Large Ben Clemons
Alderman Skip Cleaver
Alderman Linda Harriott-Gathright
APPROVING THE COST ITEMS OF ACOLLECTIVE BARGAINING AGREEMENT BETWEEN THE
MAYOR AND THE BOARD OF FIRE COMMISSIONERS OF THE CITY OF NASHUA, NEW HAMPSHIRE
AND LOCAL #789, INTERNATIONAL ASSOCATION OF FIRE FIGHTERS FROM JULY 1, 2019 THROUGH
JUNE 30, 2023 AND AUTHORIZING A RELATED TRANSFER AND SUPPLEMENTAL APPROPRIATION
e Budget ReviewCommittee Recommends: Negative Recommendation

R-20-043
Endorsers: Alderman-at-Large Lori Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large David C. Tencza
Alderman Linda Harriott-Gathright
Alderman Thomas Lopez
Alderman Brandon Michael Laws
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK EAST UTILITY, INC. TO ENTER
INTO A TERM LOAN AND RENEW A FIXED ASSET LINE OF CREDIT WITH COBANK, ACB
e Pennichuck Special Water Committee Recommends: Final Passage

UNFINISHED BUSINESS — ORDINANCES
OQ-20-017

Endorsers: Alderwoman-at-Large Shoshanna Kelly
AUTHORIZING FREE PARKING AT METERS AND PAY STATION SPACES THROUGH NOVEMBER 15,
‘abled at BOA May 21, 2020 mtg)

NEW BUSINESS — RESOLUTIONS

NEW BUSINESS — ORDINANCES

PERIOD FOR GENERAL PUBLIC COMMENT

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN

Committee announcements:

ADJOURNMENT

) THE CITY OF NASHUA "7

Ae Financial Services Division
Office of the Chief Financial Officer

TO: President Lori Wilshire
Members of the Board of Aldermen

Ce: Mayor Jim Donchess
Jobn L. Griffin, Chief Financial Officer/Comptroller

June 10, 2020

NHRS Lower Assumed Rate of Returm from 7.25 to 6.75 Percent

The purpose of this communication is to advise the Board of Aldermen that the amounts paid to
the New Hampshire Retirement System (NHRS) could increase by at least $3.0 million in
FY2022. This mcrease could be more as there are many variables associated in the calculation
of the NHRS municipal employer rates. From an historical perspective, when NHRS reduced the
assumed rate of return from 7.75 to 7.25 percent (a 6.5% reduction) in May 2016, the City’s
FY2018 general fund pension budget increased by $2.3 million.

Yesterday, June 9, 2020, the Board of Trustees of the New Hampshire Retirement System voted
to reduce the retirement system’s investment assumption, lowering the assumed rate of return
from 7.25 to 6.75 percent (a 6.9% reduction). In the attached communication, the NHRS noted:

“Overall, the changes to actuarial assumptions approved this year are expected to increase the
2022-23 employer contribution rates.”

229 Main Street * Nashua, New Hampshire 03060 * Phone (603) 589-3173 » Fax (603)
589-3168

For Immediate Release: June 9, 2020
Contact: Marty Karlon, Public Information Officer, (603) 410-3594; public_relationsidinhrs.org

NHRS Trustees Reduce Assumed Rate of Return

Rate change is part of several adjustments to actuarial assumptions

CONCORD, NH — The Board of Trustees of the New Hampshire Retirement System (NHRS&, the retirement system}
voted June 9, 2020, to adopt revised actuarial assumptions based on the results of a four-year experience study
conducted by its consulting actuary. In an accompanying vote, the Board voted to reduce the retirement system's

investment assumption, lowering the assumed rate of return from 7.25 percent to 6.75 percent,

The new assumptions, which better reflect the retirement system's actual and anticipated experience, will be used in
the actuarial valuation for the fiscal year ending June 30, 2019. By statute, this valuation will be used by the Board in
September to determine employer contribution rates for fiscal years 2022 and 2023, Overall, the changes to actuarial

assumptions approved this year are expected to Increase in 2022-23 employer contribution rates.

“The trustees have a legal obligation as fiduciaries to adopt actuarially reasonable assumptions, including the
assumed rate of return. The decision to adopt these assumptions is consistent with the Board's duty fo act in the best
interests of the retirement system's members and beneficiaries," said NHRS Executive Director George P. Lagos. “In
taking this action, the Board is responding responsibly to capital market projections, anticipated continued low, long-

term interest rates, and other economic and demographic data points that are key to projecting the pension system's
liabilities.”

The Board's decision to conduct an experiance study, which was recommended by GRS Consulting (GRS}, the
Tetirement system’s independent actuary, was made in December 2019. Lagos noted that “This study is based upon
actuarial experience for the period July 1, 2015, fo June 30, 2019, and does not take info consideration any market

volatility or potential economic impact related to the coronavirus (COVID-19) pandemic.”

Aciuaries conduct experience studies an a regular basis to assess the extent fo which their assumptions refiect plan
experience. New Hampshire iaw requires the retirement system's actuary to conduct an experience study at least
once every five years.

GRS calculates NHRS’ funded ratio, unfunded actuarial accrued liability (UAAL), and employer contribution rates
based on assumptions aboui many future events, such as the age when members will retire, their rate of salary
growth, how long they will live etter retirement, and how much the plan’s investments will earn, These assumptions
are based on detailed statistical models in accordance with national Actuarial Standards of Practice. However, they
are not facts; no one can predict future events. When the assumptions don't match the actual experience, there can
be an actuarial gain or loss. Put simply, gains reduce employer contribution rates, losses increase employer

contribution rates.

The New Hampshire Constitution (Part |, Article 36-a) requires NHRS Trustees to set actuarially sound empioyer

contribution rates and requires employers to annually pay those rates in full. Employer rates are calculated every two
years to reflect the cost of benefits as they accrue as well as pay down existing unfunded flabilities, The retirement
system's unfunded fiability is the difference between current assets and the value of benefits already accrued. This
unfunded liability - most of which is being paid off through 2039 — accounts for more than two-thirds of current
employer rates. Any increase in liabilities resuiting from revisions to actuarial assumptions included in the FY 2019

actuarial valuation will be amortized over a 20-year period ending in 2041.

Of all the assumpiions used to estimate the cost of a public pension plan, none has a larger effect on the plan’s
employer contribution rates than the investment return assumption. This is because, over time, earnings from

investments account for a majority of the retirement system's revenues.

in considering the assumed rate of return, NHRS Trustees heard capital market presentations from several
independent, expert sources, including NEPC, the retirement system's investment consultant. GRS, in its role as
consulting actuary, opined that an assumed rate of return within the range of 6,25 percent to 7.0 percent would be
considered as actuarially reasonable.

The fast time the assumed rate of return was changed was May 2046, when it was reduced from 7.75 percent to 7.25
percent.

According to February 2020 data compiled by the National Association of State Retirement Administrators (NASRA)
in its review of the nation’s largest public pension funds, the average assumed rate of return as of February 2020 was
7.22 percent. Among the 130 plans measured, 91, or 70 percent, have reduced their assumed rate of return since
fiscal year 2017, At that time, 15 public pension plans had an assumed rate of return of 6.75 percent or lower,

The 6.75 percent rate represents what NHRS Trustees believe the plan can realistically earn from its investments on
an annual basis, when averaged over the long-term. In any given year, investment-retutns are likely to be higher or
lower than the long-term assumed rate.

About NHRS

NHRS provides retirement, disability, and death benefits to its eligible members and their beneficlaries. The State of
New Hampshire and nearly 470 local government employers participate in NHRS for their employees, teachers,
firefighters, and police officers. NHRS has approximately 48,000 active members and 39,000 benefit recipients.
NHRS administers a defined benefit plan qualified as a tax-exempt entity under sections 401(a) and 501(a) of the
Internal Revenue Code.

# RF