Aldermen, Board of

A special meeting of the Board of Aldermen was held Wednesday, December 21, 2011 at 8:19 p.m. in the Aldermanic Chamber. President Brian S. McCarthy presided; City Clerk Paul Bergeron recorded. Prayer was offered by City Clerk Paul Bergeron; Alderman Chasse led in the Pledge to the Flag. The roll call was taken with 11 members of the Board of Aldermen present; Alderman Vitale, Alderman Craffey, Alderman Melizzi-Golja, Alderman Sheehan were not in attendance. President McCarthy I would note that Alderman Vitale is away on family business. Alderman Melizzi-Golja had a previous engagement this evening. Alderman Sheehan is still recovering from surgery and is unable to attend. Alderman Craffey is dealing with a family medical emergency and our thoughts and prayers go out to him and his family this evening. Her Honor Mayor Donnalee Lozeau was also in attendance. PUBLIC HEARINGS Alderman-at-Large David W. Deane, Chair of the Budget Review Committee, conducted the following public hearings: R-11-167 AUTHORIZING THE MAYOR AND CITY TREASURER TO ISSUE BONDS NOT TO EXCEED THE AMOUNT OF FIFTEEN MILLION FOUR HUNDRED NINETY-TWO THOUSAND FOUR HUNDRED AND FIFTY-THREE DOLLARS ($15,492,453) FOR THREE WASTEWATER PROJECTS As provided for in NRO 5-28, a presentation on R-11-167 was given by Mayor Donnalee Lozeau. Mayor Lozeau Thank you, Mr. Chairman. R-11-167 is before you tonight simply because ordinarily the course of business would be that when the original resolution came in, and this one came in June, it would have said state revolving loan fund or bond. That resolution didn’t say that because a new person that was drafting did not realize that that was typical because as many of you know, we can’t always count on the state revolving loan fund to be there, although we anticipated it would have been at the time. It’s actually rather fortuitous though because at this time the rates that we can get for bonding are just over a percentage lower than the state revolving loan fund. So, it’s actually a very good thing. What this resolution speaks to includes the project that have the storage tank, the aeration blower upgrade and the dewatering equipment replacement which you may recall from the action taken in June. You probably also want to know that this information was included in the rate making process that we went through the last time that it was presented. I just thought you might be interested in that as well. Chairman Deane So when and if approved, we’ll have three different commodity codes for each one of the projects in the 700 lines? Spec. Bd. of Aldermen – 12/21/11 Page 2 Mayor Lozeau However accounting does it. I believe that’s generally how they do it. Chairman Deane Okay. Does anyone have any questions? Seeing none, I’ll now accept testimony in favor of R-11- 167. Testimony in Favor – None Testimony in Opposition – None Testimony in Favor – None Testimony in Opposition – None Chairman Deane declared the public hearing closed on R-11-167. R-11-169 CREATING A SPECIAL REVENUE FUND FOR PAYMENT OF THE ACQUISITION BOND FOR PENNICHUCK CORPORATION As provided for in NRO 5-28, a presentation on R-11-169 was given by Mayor Lozeau. Mayor Lozeau Thank you, Mr. Chairman. This special revenue fund is the way that we have determined to be the best to allow us to accept funds from Pennichuck Corporation to come into this fund and then be allowed to be spent paying down the debt that we will have having acquired the company. As you see in the analysis, it speaks to the state giving us the ability to restrict our revenues from specific sources to the expenditures that we are discussing tonight. We had some discussion at the last Board of Aldermen meeting when this was introduced trying to determine whether we could have anticipated this sooner and brought it in sooner. As I explained that evening, the process that we wanted to use in order to have the funds come into the city to pay this bond had to be approved by the PUC. So we were waiting to ensure that they would allow the process that we had presented to them; that that would be accepted. Once it was, we then worked with our financial advisers, legal counsel, to determine that the special revenue fund was the best way to accept those funds and that’s what is before you this evening. Chairman Deane The way I understand this is the only thing that the funds in this account are going to be used for is paying principal and interest, period. Nothing else. Mayor Lozeau That’s correct. Spec. Bd. of Aldermen – 12/21/11 Page 3 Chairman Deane Okay. Any questions? Being none, I’ll open the public hearing. Is there any testimony in favor of R- 11-169? Come up and state your name and address for the record. Testimony in Favor Geoff Daly, 48 Walden Pond. I am basically in agreement with the funding, but what I am not in agreement with is the way the wording is of the article. The way the mayor has just described it, the way you just asked, those funds will be used exclusively to pay off the principal, and I think that should have been part of the article reading at the topic. I hate to say it. It’s weasel words again. I think it needs to be clarified even if it means, like that first one, four or five or six lines. It needs to be made more clear so when one reads it. Yes, I know you’ve been through all the documentation, but I think this, we’ve got to fund it. We’ve got to get hold of Pennichuck, and the city has got to get a handle on it. But I think the way this is worded here is incorrect, but I am in favor of the company. But the way it’s worded should be changed. There should be somewhere around that occurring before it gets fully passed. Thank you. Testimony in Opposition – None Testimony in Favor – None Testimony in Opposition – None Alderman Deane declared the public hearings closed at 8:26 p.m. ADJOURNMENT MOTION BY ALDERMAN CHASSE THAT THE DECEMBER 21, 2011 SPECIAL MEETING OF THE BOARD OF ALDERMEN BE ADJOURNED MOTION CARRIED The meeting was declared adjourned at 8:27 p.m. Attest: Paul R. Bergeron, City Clerk