Aldermen, Board of
Regular MeetingNashua, NH · January 13, 2015
Minutes
A regular meeting of the Board of Aldermen was held Tuesday, January 13, 2015, at 7:30 p.m. in the
Aldermanic Chamber.
President David W. Deane presided; City Clerk Paul R. Bergeron recorded.
Prayer was offered by City Clerk Paul R. Bergeron; Alderman Dowd led in the Pledge to the Flag.
The roll call was taken with 15 members of the Board of Aldermen present.
Mayor Donnalee Lozeau and Corporation Counsel Stephen M. Bennett were also in attendance.
REMARKS BY THE MAYOR
Mayor Lozeau
Thank you, Mr. President. With this being the first Board meeting for 2015 I just wanted to extend my best
wishes to all of you and your families and our citizens of Nashua. I look forward to the New Year ahead and to
complete projects and make things happen that are in the best interest of our citizens. I think it’s kind of funny
that some projects that are underway were conceived before some of us in this room were born but some
things are worth waiting for and as the good book says, “for every time there is a season, there is a reason for
things.” When I first ran for Mayor 2007 I really believed that I was the right person at the right time for that job.
Serving as Mayor in Nashua, my lifelong home, has been an honor that I am sure will never be matched in my
lifetime. Just as 2007 was the right time for me to run and be elected Mayor, 2016 for me is the right time to
look forward to other opportunities and to search new ventures. Without taking up a lot of your time tonight, I
thought you should be the first group to know that I have decided not to seek re-election for a third term. As I
am sure you can appreciate and imagine, this is not a decision that I take lightly, I have given it a lot thought
and after 7 years of being in this position and the thing that we have accomplished together; I think there is
more that can be done and I want to make sure that I put the city in the best possible situation that I can when
the new administration takes over on January 3, 2016. It’s probably good news for some and not for others. I
am going to spend this last year still being the Mayor and doing my job. Just so we are clear I am going to be
paying attention to it and I am going to put all of my energy and attention onto it the way I always have and I
look forward to working with you and finishing projects that were slated to be finished this year and starting
ones that can be completed this year. In the very end, I will make sure that I leave this city in the best position
that I can. I wanted to give you the courtesy of letting you know as soon as I could and this being the first
meeting of the year I thought this would be a good time to do it. Thank you for your kind attention, as always,
this evening.
RESPONSE TO REMARKS OF THE MAYOR
Alderwoman Brown
I am disappointed to hear that Mayor, but thank you for letting us know with certainly enough time. I appreciate
your honesty.
Alderwoman Melizzi-Golja
I would also like to thank the Mayor for telling us in person rather than in an e-mail. Thank you for taking this
opportunity to let us know.
Alderman Siegel
I would like to thank the Mayor for her hard work. I know that sometimes we are on opposite sides of the issue
but nobody can deny how hard the Mayor works and how committed you are. Even though sometimes we are
on opposite ends of the spectrum on things and sometimes it’s actually funny or not…I really do appreciate the
fact that you do care. Thank you very much for your service and I know that you have a very difficult job and I
am sure it was a difficult decision.
Board of Aldermen - 1/13/15 Page 2
Alderman Moriarty
I want to thank you for respecting us and telling us in person.
Alderman Donchess
I would like to thank Mayor Lozeau for her service to the city. I first met her when she was in the legislature
and she fought very hard for Nashua for I believe 16 years in the legislature. Although sometimes we are on
opposite sides, if you look in the voting record, we are usually on the same side. I would like to thank her for
her at least 24 years of service in the public sector to the City of Nashua.
Alderman Soucy
This was a blind side and I can assure you that I won’t be running for your job either. I do want to thank you for
your many years of service and at no time have I ever questioned your integrity and that you have had the best
interest for the City of Nashua. I hope wherever you decide to move on to that you are comfortable there and I
am sure you will do a great job.
Alderman Sheehan
I will echo my colleague’s thanks for your service but I will add thank you for smashing the glass ceiling. You
are the first woman Mayor and I think that hopefully there will be more. I am not announcing anything as I
have no interest in it either but I think that it’s important for young women and young leaders to feel like
anything is possible and you made that very obvious to people. I thank you for being courageous enough to
run for something that nobody else had ever gotten with your qualifications.
Alderman McGuinness
You have always had my very best regards and I wish the best for you a year from now. I hope you are
heading somewhere that you are going to love and enjoy. It was a pleasure serving you for this short year that
I have been in office.
Alderman Caron
I too would like to thank you for making that announcement to us as a group. I think that was very courageous
of you because you could have held off a little longer and kept everybody in suspense. I have been here for
three years and I know that you and I butt heads because working for the city and knowing some of things that
I know; we were able to overcome some of those things and work hand in hand and I appreciate some of the
things that you were able to do for me personally and for some of the people in my ward. I respect you and I
think that wherever you go you do a fine job.
Alderman Chasse
Did you win the lottery?
Mayor Lozeau
No.
Alderman Chasse
It was enjoyable working with you all these years. I know that sometimes we are on different sides of the fence
but when we leave this horseshoe you will still be my friend.
Board of Aldermen - 1/13/15 Page 3
Alderman Schoneman
Mayor, thank you very much for the service that you have provided here. I have had a chance to work with
people over the years that have provided service to the country and to cities and municipalities and I have
thoroughly enjoyed working with you. I have learned a lot too, this has been an interesting year as my first
year in public service. Your job is very difficult, this job is very difficult and it’s difficult in ways that I didn’t really
appreciate before I got here. Observing your conduct and the way that you handle situations and people; it’s
been an inspiration. I am grateful for your service and I will miss seeing you in that chair.
Alderman Dowd
I thank you for your service but I look forward to supporting you for the next 12 months. You are not going
anywhere right now. There are still many things to do and accomplish.
Alderman McCarthy
I think in the time I have been on this Board, I have worked with four Mayors and have known a total of eight,
nine if you include the reincarnation of Josephus Baldwin that appeared around the time of the
sesquicentennial but I don’t count that for real. I don’t think there is any question that no Mayor has ever
worked harder for the City of Nashua or had more commitment to its furthering on. I look forward to working
with you for the remainder of the year.
President Deane
Thank you, Mayor. I appreciate working with you. I first met the Mayor over at the Senior Activity Center at
Davidson Landing when she was working with Southern New Hampshire Services and we championed that
effort that’s on Temple Street now. It’s been a success for our seniors. I look forward to spending the next 12
months with you. We still have things to do. Thank you for announcing it before the Board, I appreciate it.
Mayor Lozeau
I appreciate everyone’s kind words. I know you are surprised to have heard it tonight and I did not mean to
blind side you, I just wanted take the opportunity to tell you.
RECOGNITION PERIOD - None
READING MINUTES OF PREVIOUS MEETING
MOTION BY ALDERMAN McCARTHY THAT THE MINUTES OF THE BOARD OF ALDERMEN MEETING OF
DECEMBER 23, 2014, BE ACCEPTED, PLACED ON FILE AND THE READING SUSPENDED
MOTION CARRIED
COMMUNICATIONS
MOTION BY ALDERMAN MORIARTY THAT ALL COMMUNICATIONS BE READ BY TITLE ONLY
MOTION CARRIED
From: Mayor Donnalee Lozeau
Re: Operating Agreement with Essex Power Services, Inc.
MOTION BY ALDERMAN MORIARTY TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE CITY TO
ENTER INTO THE OPERATING AGREEMENT WITH ESSEX POWER SERVICES, INC.
MOTION CARRIED
Board of Aldermen - 1/13/15 Page 4
MOTION BY ALDERMAN CHASSE THAT THE RULES BE SO FAR SUSPENDED AS TO ALLOW FOR
THE INTRODUCTION OF TWO COMMUNICATIONS RECEIVED AFTER THE AGENDA WAS PREPARED
MOTION CARRIED
From: Mayor Donnalee Lozeau
Re: Additional Appointment
MOTION BY ALDERMAN CHASSE TO ACCEPT AND PLACE ON FILE
MOTION CARRIED
President Deane
The second communication is from James B. and Mary Cutter.
MOTION BY ALDERMAN CHASSE TO ACCEPT AND PLACE ON FILE
MOTION CARRIED
PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED
UPON THIS EVENING
Mr. Sam Tamposi, Jr. – 39 Indian Rock Road
Our family owns the property located at 242 Main Street which is the site of the C.V.S. store and I am here
tonight asking for your support of the R-14-092 as amended. First of all I would like to thank many of the
Aldermen who I have had a chance to talk to about this over the last 30 days. There are several of you that I
haven’t had a chance to talk to but thank you very much for your time. I also want to thank the Finance
Committee members last week for allowing myself and Rich Lannan to engage in a dialogue with the
committee last Wednesday. As most of my comments are already part of that public record, there’s no need
for me to spend time on that. The crux of the matter is that C.V.S. needs 37 parking spots for a 25 year period
in order to make the project financially feasible for the redevelopment of the site which involves our property,
the Labine Family property; better known as where Giant of Siam used to be and Paul Charron’s property
where the Charron Medical Equipment Supply is located. The project has evolved as a joint effort among the
city, C.V.S., the hospital, and the three property owners. Tonight I just respectfully request your endorsement
of the proposed resolution as amended.
Mr. Rich Lannan, 70 Taggart Drive
No matter how much discussion there is about C.V.S. tonight I get a feeling that with the announcement
earlier that the front page will more about the Mayor deciding this tonight and C.V.S. will be hidden down on
page 23. I do want to thank the Finance Committee members for having an open discussion with us at their
meeting. I think it helped everybody and it was a good opportunity. I think it’s a very good and vital project for
the downtown. The economic benefit could be terrific and the risk reward of this project is that parking lot will
probably be continued being leased to Southern New Hampshire Medical Center for 25 years. The reward is
that nice new C.V.S. on the corner, potentially a garage office building, jobs, a parking garage and I think the
risk reward for this project is very clear and I would love your support as well.
Mr. Michael Broderick, 8 Boxwood Court
Mayor, thank you for your service and I’ll bring you some tomatoes this summer.
Mayor Lozeau
Not so many that I have to claim them.
Board of Aldermen - 1/13/15 Page 5
Mr. Broderick
I’d like to speak on R-15-103. Have we had an appraisal on this property at Mulberry Street? Also, is there
toxic waste, lead, or asbestos in that building? I think that’s important. What is the cost to tear it down, what
is the cost to build a new one? Would it be more advantageous to look at a new location and outfit that? I
would suggest that you go to a subcommittee to look at that before you vote to actually do this project. There
are a lot of things coming up in 2016; it’s going to be a very tough year with the Broad Street Parkway bond
coming up and you just did a radio communications bond looking at new telephone systems. How is this
going to affect the taxpayers in the city? I urge the Board to really look at that and not just automatically
approve something, especially in that it’s a very old building and you never know what you are going to find so
there are probably a lot of hidden costs in this project.
President Deane
If it gives you any reassurance that piece of legislation is set to be sent to the Infrastructure Committee for
review. I don’t believe final action will be taken tonight.
PETITIONS – None
NOMINATIONS, APPOINTMENTS, AND ELECTIONS
Appointments by the Mayor
The following Appointments by the Mayor were read into the record:
Cultural Connections Commission
Fouad Mahfuz (New Appointment) Term to Expire: January 31, 2018
265 Dutton Street #2
Lowell, MA 01852
Historic District Commission
Christopher Barrett Term to Expire: January 31, 2018
(Moving from Alternate to Full Member)
65B Manchester Street
Nashua, NH 03064
Hunt Memorial Building Board of Trustees
Brenda Baron (New Appointment) Term to Expire: December 31, 2019
5 Ashland Street
Nashua, NH 03064
MOTION BY ALDERMAN CHASSE TO ACCEPT THE APPOINTMENTS BY THE MAYOR AS
READ AND REFER THEM TO THE PERSONNEL/ADMINISTRATIVE AFFAIRS COMMITTEE
MOTION CARRIED
MOTION BY ALDERMAN CHASSE THAT THE RULES BE SO FAR SUSPENDED AS TO ALLOW
FOR AN APPOINTMENT BY THE MAYOR RECEIVED AFTER THE AGENDA WAS PREPARED
MOTION CARRIED
Board of Aldermen - 1/13/15 Page 6
Historic District Commission
Edward Weber (New Appointment) Term to Expire: March 31, 2015
4 Cabernet Court
Nashua, NH 03062
MOTION BY ALDERMAN CHASSE TO ACCEPT THE APPOINTMENT BY THE MAYOR AS
READ AND REFER IT TO THE PERSONNEL/ADMINISTRATIVE AFFAIRS COMMITTEE
MOTION CARRIED
Appointment by President of the Board of Aldermen
Auditorium Commission
John J. McAllister (Reappointment) Term to Expire: December 31, 2017
257 Wheeler Road
Hollis, NH 03049
MOTION BY ALDERMAN CHASSE TO ACCEPT THE APPOINTMENT BY THE PRESIDENT OF THE
BOARD OF ALDERMEN AS READ AND REFER IT TO THE PERSONNEL/ADMINISTRATIVE AFFAIRS
COMMITTEE
MOTION CARRIED
Appointment of Timothy Lavoie to the Capital Equipment Reserve Fund
Tabled 8/12/14
REPORTS OF COMMITTEE
Finance Committee ............................................................................ 01/07/15
There being no objection, President Deane declared the report of the January 7, 2015
Finance Committee accepted and placed on file.
Personnel/Administrative Affairs Committee ....................................... 12/22/14
There being no objection, President Deane declared the report of the December 22, 2014
Personnel/Administrative Affairs Committee accepted and placed on file.
Planning & Economic Development Committee ................................. 12/16/14
There being no objection, President Deane declared the report of the December 16, 2014
Planning & Economic Development Committee accepted and placed on file.
Planning & Economic Development Committee ................................. 01/06/15
There being no objection, President Deane declared the report of the January 6, 2015
Planning & Economic Development Committee accepted and placed on file.
WRITTEN REPORTS FROM LIAISONS – None
CONFIRMATION OF MAYOR'S APPOINTMENTS - None
Board of Aldermen - 1/13/15 Page 7
UNFINISHED BUSINESS – RESOLUTIONS
R-14-092, Amended
Endorsers: Mayor Donnalee Lozeau
Alderman-at-Large Lori Wilshire
Alderwoman Pamela T. Brown
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO AN AGREEMENT WITH CVS MANCHESTER
NH, LLC FOR FUTURE PARKING RIGHTS AT THE CITY OWNED
PARKING LOT LOCATED BEHIND CVS PHARMACY
Given its third reading;
MOTION BY ALDERMAN WILSHIRE FOR FINAL PASSAGE OF R-14-092 AS AMENDED
ON THE QUESTION
Alderman Donchess
This received the endorsement of the Finance Committee on a divided vote but I wanted to explain my thinking
on this as to why I don’t think this project on the whole is the best and we should not, in my opinion, proceed
with it. We have a C.V.S. that’s been at the corner for about 40 years and we have three structures on this
whole block that is encompassed by West Hollis/East Hollis Streets/Main Street/Medical Drive. The C.V.S.,
the Charron Medical Building, and the former Towers Motor Parts that was the Giant of Siam. What’s going to
happen is the C.V.S. wishes to expand in order to establish a drive-thru and it needs city property in order to
do that and wants to secure control of the city lot or most of it for 25 years. As part of this project, two of the
buildings are going to be torn down; Charron Medical and the Giant of Siam. The principle reason that I have
reservations about this is the city’s Master Plan. It says the following “Hollis and Main Street Intersection, the
regions 100% corner. There is no more important intersection to redevelop in Nashua than the intersection of
Hollis and Main Streets. The intersection is the regions 100% corner as it creates gateways to Main Street
from the east and west and south. All four corners of this intersection are currently underutilized and
underperforming. In a city with limited available land and relatively low scale buildings, three of the four
corners present opportunities to add significant square footage to the downtown inventory of office, retail,
institutional, and cultural space. Downtown’s largest new buildings should be sited at this intersection. A
series of distinct 4-6 story mixed use office buildings would create a center to the downtown. The buildings
would anchor both ends of Main Street by creating a strong center and transform an anonymous intersection
into the regions symbolic heart. Specifically to southeast corner, to truly create a 100% corner at Hollis and
Main, the southeast corner of the intersection should also be a redevelopment opportunity. At present this site
houses a service station (which now has been torn down), a drugstore (C.V.S.), a few miscellaneous
businesses and restaurants (which will be torn down), and surface parking for the medical center. The
proposed building configurations (proposed by the Master Plan) will not only define the corner the Hollis and
Main Streets as a gateway but with ground floor retail uses they will encourage pedestrian orientated street life.
The proposed buildings (as proposed by the Master Plan) would have retail businesses at street level with
offices above. The offices could be used by the hospital or physicians’ offices or other businesses seeking
space in the heart of downtown.” People have made the bird in the hand is better than two in the bush
argument and I get the point of that argument but to me, I believe that we need to be more optimistic about
what can be accomplished in Nashua and the downtown. I think we as the city should work together with Mr.
Tamposi who is an experienced and accomplished businessman and developer, with the hospital, and C.V.S.
to realize what is set forth in the Master Plan. Have C.V.S. on the ground floor and work to develop these 4-6
story office buildings at the center of our downtown as the Master Plan says. If we move forward with this
project then we will be tearing down more structures than we will be adding and we will be putting a one floor
pharmacy with a drive-thru at that essential corner instead of what is outlined in the Master Plan. If C.V.S. was
using its own land or the land that it is leasing to do its project then that would be fine but it needs city land to
do this expansion and drive-thru and that’s why we are involved. Finally, Mr. President, on the issue of what
we could accomplish, if you look for example north to the City of Concord, the Pleasant Street intersection with
Main Street is similar to the West Hollis Street intersection. It’s sort of the southern boundary of the central city
Board of Aldermen - 1/13/15 Page 8
and in the last 5 – 10 years Concord has had built directly on its Main Street two major office buildings, one
including a movie theatre and a restaurant and then more recently, further south another major office building.
That is what I think we should be looking for on Main Street. Why can Concord to this and not Nashua? Why
should we sell ourselves short and agree to allow for a period of at least 25 years city land to be used to
establish a drive-thru pharmacy on this central corner of Main Street? I think if we hold out for the better plan
in the long-run, even if it takes a few years, the city will be much better off.
Alderman McCarthy
I think quite the opposite. I think this agreement facilitates what the Master Plan anticipates. We had a
number of discussions with the hospital which is the reason why there is a three-party agreement in place that
allows the hospital to put a multi-story office building and parking garage on that corner and that is the most
likely office use. If we are looking at straight office space, I think Mr. Tamposi will tell you, as he has told me;
there is no demand whatsoever for upper floor office space in the downtown at the moment and probably won’t
be for many years to come because we have a sufficient inventory. I think things are simply different than they
were when the Master Plan was written. The Master Plan doesn’t anticipate the success that the hospital has
had and its expansion of downtown medical facilities. They are the most likely user of upper floor office and
that is exactly what the agreement anticipates. I don’t think we are going to see the kind of development in our
lifetimes that they Master Plan originally anticipated because things are different than they were 20 years ago
when that Master Plan was written. I think the agreement that we’ve got is a good one, I think it facilitates the
orderly development of downtown, and helps us with that corner; it allows for what we should have there and
frankly I intend to support it.
Alderman Soucy
Alderman Donchess, on this Master Plan, I know it’s been around for a while, are you aware of what the
timeline is on when they are to be supposed to be making this the corner with the large buildings? Are we
looking at another 20 years down the road?
Alderman Donchess
There is no timeline but this is the plan that the city developed and it’s still in force. It doesn’t really say by any
particular deadline. I think that if we were to work together with other parties this is the least potential for that
corner and we are giving up such a huge opportunity at that corner. I just don’t think that a drive-thru
pharmacy comes close enough to what is envisioned in the Master Plan to warrant giving C.V.S. 25 years
control over the city parcel.
Alderman Dowd
When I was Chairman of the Nashua Airport Authority we did a 20 year plan which we completed in 5 years.
That had changes to it so a plan that’s 20 years old is just that, it’s a 20 year old plan. The C.V.S. as we have
heard numbers of time is one of the busiest intersections in the State of New Hampshire and one of the busiest
in New England. It’s a convenience for the people of Nashua who use it day in and day. I bet I have been in
that C.V.S. about 20 times in a year. I don’t like the way that corner looks right now and I haven’t for a long
time. I think the plan they have in place is certainly going to improve the looks of that corner and the downtown
in general. There are not 10 people standing in line waiting to put money into a multi-story building. Look how
long the Trafalgar Square building was around with a foundation waiting to be built with upper floor office
space. Finally it was given up to another hotel. There is no demand right now for that kind of office space and
I don’t envision it for quite some time. I think this is a way that we can improve the looks of the downtown, we
can add to the functionality of people that want to be able to go there conveniently, particularly people that are
walking in the downtown area to get their prescriptions and I think it will be a vast improvement in the look of
this corner going forward. Downstream if there is that kind of demand for a building, I would like to see the one
across the street taken down and a new building built.
Board of Aldermen - 1/13/15 Page 9
Alderman Schoneman
I have been giving this careful thought and while the Master Plan may be old we still have a vision for
downtown and the vision that we have discussed for downtown is that is a pedestrian downtown. We have an
automobile focused downtown. We have talked about Main Street being a thoroughfare, just people passing
from south to north and north to south. My main concern about the C.V.S. is the drive-thru aspect. An anchor
store like C.V.S. on the first floor of a multi-store building could be great like Davis Square in Somerville but
that’s very much a walking city. I think that if we have a vision for this being a walking city then if we put in
infrastructure that caters to automobiles then we are going to have a potential difficulty. At some point we are
going to say well if we have this drive-thru here its encouraging traffic and not encouraging the walking that
we’d like to see. As much as I support the development of business, I don’t like the drive-thru aspect of this.
Alderman Sheehan
I am going to agree with all of my colleagues for the most part but I think what we need to do is look at what is
in common with what we are all saying. I don’t think that having a drive-thru makes it so you can’t walk. A lot
of people use the drive-thru because that’s what you need to do. I use Rite-Aid, which is also on Main Street
when I need to use a drive thru, I use C.V.S. because it’s about half the price for some of the prescriptions I
pay for out of pocket but if I have a sick kid then I am going through the drive-thru. I think that’s something
that’s important for some people who are not feeling well. I think what we need to look at in this is this is an
interim solution. We have somebody who wants to put in second and third floor offices but they are going to be
medical. It would be nice to have ones like Concord but we don’t have a lot of lobbyists in Nashua that have
office space that needs to be near Main Street, it’s a different sort of animal. This is a medical area and that’s
who wants to build here and this is what has come in. If we are looking at the fear of what’s going to happen at
the end of the first lease and then there’s another 10 year hang, what would most likely happen in business is
that it would get bought out. If there is a big opportunity somebody is not going to let a lease of 10 years with
37 spots. They are going to need the rest of the land in that instance and they are going to buy it out.
Chances are hopefully that we are going to see a parking garage and offices long before any of this happens.
These other properties are privately held and we can’t tell them what they have to do. We probably need to
revisit the Master Plan because it is outdated and it is supposed to be updated periodically. I think it’s obvious
that at some point it is going to be medical. I also think that this would get us over the hump and clean up a
decrepit looking building and a terrible and dangerous setup for parking. It’s market driven. When the market
is ready for an office we have an agreement in place which is our third party agreement. If something else
radically changes and someone wants to come in and build a big, beautiful building, they are going to buy out
leases; that’s just the way things work. There are multiple owners and I think we are standing in the way of a
good interim solution and I am going to be supporting this.
Alderman McCarthy
With regard to pedestrian downtown, once again this plan facilitates a better plan than the one we have got.
The building that is there is a suburban building design that’s the back of a parking lot that fronts 100% on the
corner. It provides no edge that looks like a pedestrian space. The new building is built on the corner up
against the sidewalk. The vehicle entrances are in the back so it’s actually more enticing for someone that’s a
pedestrian because they don’t have to dodge that parking lot which has two exits that both are so terrible that
we have to put no left hand turn instructions that we don’t enforce. This plan straightens that out so that it’s
safer to walk to that site.
Alderman Siegel
As many of you know, I was against the initial deal but that deal is done. What I had problems was
encompassed in that deal. I think if you are doing your job properly you have to look at the world as it is and
make decisions based on current events. I voted in favor of this at Finance and I’ll agree with Mr. Lannan and
Mr. Tamposi; it was a very useful conversation to have. I’ll go through what led me to change my mind from
my initial decision. Within the 15 year window we have a very real risk and it’s not a real risk, it’s going to
Board of Aldermen - 1/13/15 Page 10
happen; there’s no guarantee that this site will not be developed by C.V.S. I know this as a franchisee of a
company. If we put a bullet in this deal required to have 20 year or more leases and they will walk if they can’t
get their sufficient parking spaces or drive-thru’s. We are focusing on the drive-thru as though C.V.S. is driving
because it is necessary for business. It doesn’t work that way, there’s a good chance there are people in their
corporate office that look at this and have a model for how the new developments are to be and they all have
to have a drive-thru and it became a requirement. Here we have the very real possibility inside of this 15 year
window where Mr. Cote from the hospital has told me that within the next couple of years it’s not likely that we
are going to see a development but it is likely that we will see that parking garage and office buildings and of
course, medical buildings are the most likely use and in fact, if you put the parking structure/medical buildings
there and the newly created C.V.S. façade you get fairly close to what’s achievable with the Master Plan. It’s
probably achievable as possible given that I agree with my colleague, Alderman Sheehan, that this is a
medical facility user and that’s it. Given that that has a high probability of happening in that 15 year time
window, if we say no to this we are going to kill a development for no particularly good reason and I think that’s
a problem because it’s not like everybody is racing to lease that space. They won’t lease it without that
guarantee so what happens if we put a bullet in this deal, someone else comes and they need to do a
development and they are going to need the parking because that’s required and now we are at the point
where we are resetting the clock and doing the same deal just with a different player and we’ve hurt a local
businessman that really doesn’t deserve that. That’s the 15 year window, its gets more complicated between
15 and 25 years. There’s an existing agreement with the hospital and C.V.S. that guarantees them the spaces
if the hospital takes over takes over the property and the amendments to what we have seen, the original
legislation, provide for the ability for the hospital to acquire that property after that 15 years and C.V.S. has to
honor the hospital’s acquisition of that so that their sublease becomes effective even if they didn’t control the
property the way we would like and I think that’s important. In this case we are betting that the donut that is
carved by those 37 spaces, which devalues that property, is going to create a situation where a viable tenant
paying a significant amount of tax revenue is going to build there in that window vs. the offset which is 100%
true which is that those spaces are going to be between 75% - 100% lease generating guaranteed income
from the existing hospital. That is a very tiny economic discrepancy over 10 years, I believe, and in fact, it’s so
small and it’s not even weighted against the probability of that happening so for that small thin read of
probability we are going to try to put a bullet in a deal that will get us a better development right now from a
local businessman that really doesn’t deserve to get run over by city government. I just think that’s something
that could send the wrong message. That’s why looking at something that I hated originally and I would have
completely restructured that deal to what we have now which is something we should do and that’s why I voted
for this and that was the decision process that I went through at the Finance Committee.
Alderwoman Brown
I have to admit that a lot of my comments have already been spoken for and I wish not to be redundant but I
was also in favor of this at the Finance Committee and I believe it’s a win/win for the city, for the hospital, and
C.V.S. There are three major pharmacies downtown, C.V.S., Rite-Aid, and Walgreens and C.V.S. is the only
one without a drive-thru. It has to be competitive and improving that corner will be a blessing I think to all of us.
We have a retailer that wants to expand and thrive and I believe it would be in the best interest of all of us. I
personally believe it will attract more people to the downtown area and I am definitely voting in favor of this.
Alderman Chasse
I am going to request a roll call. Secondly, I made a comment at that Finance Committee meeting which was
for something so important, where were the rest of the Aldermen? Everybody has got their mind made up
already; I say take a vote, Mr. President.
Alderman Moriarty
Why should you vote for this? It’s because the seniors use this parking lot and they will always use it. It’s a
short walk to the hospital. The parking lot in between C.V.S. and the hospital works nicely and the way C.V.S.
will be re-routed it will actually facilitate that and at some time in the future we are likely going to get the high
Board of Aldermen - 1/13/15 Page 11
rise parking lot. Another reason is because currently it is set back and you see the parking lot in front of the
building and it will be the building up front and the parking lot in the back. If we were to right form-based codes
which is something we talked about in PEDC recently, you would describe a building the way you would want it
to look downtown and the way we want buildings to look downtown are the way most of Main Street where you
have a very prominent sidewalk with a building that is very close to that sidewalk that has a certain image to it.
At that intersection, that building will come right up to the corner and g all the way around as opposed to
everybody driving through the intersection seeing a parking lot. If we were to draw a picture in our head as to
what we would like a building to look like on that corner, we would see what the drawings are for this building.
Finally, economically we are coming out of the worst recession we have had in a long time and we would like
to have a lot of development on Main Street and there are a few opportunities in the future to develop on Main
Street. We have a deal with two major entities in the city that are going to move forward and we could get the
ball rolling. It may not be perfect but at least we can get the ball rolling.
A viva voce roll call vote was taken which resulted as follows:
Yea: Alderman McCarthy; Alderman Dowd; Alderman Schoneman; 13
Alderman Caron; Alderman McGuinness; Alderman Sheehan;
Alderman Soucy; Alderman Moriarty; Alderman Siegel;
Alderwoman Melizzi-Golja; Alderwoman Brown; Alderman Wilshire;
Alderman Deane
Nay: Alderman Chasse; Alderman Donchess; 2
MOTION CARRIED
Resolution R-14-092 declared duly adopted as amended.
UNFINISHED BUSINESS – ORDINANCES - None
NEW BUSINESS – RESOLUTIONS
R-15-102
Endorser: Alderman Richard A. Dowd
Alderman-at-Large Lori Wilshire
Alderwoman Pamela T. Brown
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Diane Sheehan
Alderman June M. Caron
Alderman-at-Large Brian S. McCarthy
AUTHORIZING THE TRANSFER OF UP TO $650,000 FROM THE SCHOOL CAPITAL RESERVE
FUND INTO CAPITAL PROJECT ACTIVITY “SCHOOL IMPROVEMENTS”
FOR REPLACEMENT OF THE HIGH SCHOOLS’ RUBBERIZED GYM FLOORS
Given its first reading; assigned to the BUDGET REVIEW COMMITTEE by President Deane
R-15-103
Endorsers: Mayor Donnalee Lozeau
Alderman-at-Large Lori Wilshire
Alderwoman Pamela T. Brown
Alderwoman Mary Ann Melizzi-Golja
Alderman Richard A. Dowd
AUTHORIZATION TO OFFER TO PURCHASE LAND AND BUILDINGS AT 11-13 MULBERRY STREET
(MAP 82, LOT 26) FOR RELOCATION OF THE DIVISION OF PUBLIC HEALTH AND COMMUNITY
SERVICES
Board of Aldermen - 1/13/15 Page 12
Given its first reading; assigned to the COMMITTEE ON INFRASTRUCTURE and the NASHUA CITY
PLANNING BOARD by President Deane
R-15-104
Endorser: Mayor Donnalee Lozeau
ESTABLISHING AN EXPENDABLE TRUST FUND FOR APPROPRIATIONS FOR THE
PURPOSE OF OPERATING THE JACKSON MILLS DAM AND APPROPRIATING $240,000
FROM UNDESIGNATED FUND BALANCE INTO THE EXPENDABLE TRUST FUND
Given its first reading; assigned to the BUDGET REVIEW COMMITTEE by President Deane
NEW BUSINESS – ORDINANCES
O-15-038
Endorsers: Mayor Donnalee Lozeau
Alderman-at-Large Daniel T. Moriarty
Alderwoman Pamela T. Brown
AMENDING THE COMPOSITION OF THE CABLE TELEVISION ADVISORY BOARD
Given its first reading; assigned to the PERSONNEL/ADMINISTRATIVE AFFAIRS COMMITTEE by President
Deane
PERIOD FOR GENERAL PUBLIC COMMENT
Mr. James Cutter, 86 Palm Street
Dear President Deane,
Last year after I complained about a no parking sign had not been replaced after the sidewalk and street work
was finished, Lisa Fauteux, Director of Public Works and Steve Dookran, City Engineer did a study and agreed
the sign should be replaced. On September 4th a new sign was installed only to have Mayor Lozeau order it
removed 5 days later. Shortly after that I was surprised to learn our ordinance O-0-24 had been erroneously
revoked. Then I looked for the Aldermanic meeting dates when the readings and approval were done for O-
12-25 and found out that I was absent on October 9th and November 13th unable to correct anything. If present
I would have said our ordinances are permanent. The sign had been in place for about 12 years. It cannot be
revoked since sidewalk repair is the only reason the sign was out of the ground. Now we would like someone
to sponsor legislation to reinstate our ordinance O-0-24 and section 320-69 of O-0-25 to read as it was before.
Sincerely, Jim.
Mr. Robert Sullivan, 12 Stoney Brook Road
First off Mayor Lozeau, I wish you the best of luck. No one can deny that you are a hard worker and I wish you
and your husband all the best in the future.
The purpose of my speaking this evening is to follow up to a meeting I had some time ago regarding the
Business & Industrial Development Association (BIDA). I think it’s very important that the Board of Alderman
reinsert itself into this BIDA equation. I think the Board of Aldermen and I’m not insulting anyone, have
abdicated their responsibilities and the oversight regarding this Renaissance Project, especially the approval of
selling land for $1.00 that’s appraised at $1.77 million. Here are some of my concerns. About 12 weeks ago I
called several Aldermen and communicated by e-mail and no one knew what was going on with this project
back at that period of time. In fact, I sent minutes and also other issues that I was concerned with. I also
talked at the last meeting about delays in getting minutes posted and virtually no communications between the
Board of Aldermen and BIDA and I really believe that’s a liaison responsibility. I mentioned that I had sent
some questions a while back and I know that Alderman Deane requested that I send them back to him about a
week ago and I’m sure he is going to work on those. We
Board of Aldermen - 1/13/15 Page 13
had some discussions at the end of the meeting between myself with Alderman Sheehan and Alderman
McCarthy. Alderman Sheehan, you mentioned that I should attend the BIDA meetings and ask questions but if
you read the questions that I sent to the Board of Aldermen, to the Infrastructure Committee because I thought
that’s where they went but Alderman Donchess straightened me out on that one. These questions that I sent
are all policy questions that the Board of Aldermen have to address; they are not suitable to be sent to the
BIDA group. I’ll read a couple of questions. Is it appropriate for BIDA members to participate in decision
making efforts and then work for those entities that benefit from these decisions? I don’t think the BIDA group
members would answer that question and I thought my other six questions were similar. I appreciate your
input, Alderman Sheehan. Another major concern that I had was the conflicts of interests. There were two of
them that I am aware of and Alderman McCarthy spoke up and he wasn’t aware of the conflicts of interest to
the degree that I stated in my questions. As denoted in the July 18th minutes, a BIDA member resigned due to
a conflict of interest. What is the conflict? Is the nature of this conflict of interest similar to a former BIDA
member who resigned from BIDA in another conflict of interest to represent the Renaissance Group? If you
look in the minutes of the meetings, you’ll find that back on October 27, 2008, and individual resigned because
Renaissance asked this particular BIDA member to represent them on the Bridge Street Project. Another
question that I had was should not legislation be passed by the Board of Aldermen to prohibit BIDA members
from working for entities that benefit from the BIDA decisions for a one to two year period from the point of time
that decisions are made. I think that’s a legitimate question. Not only that but in the July 18th BIDA minutes
there was another person who resigned due to a perceived conflict of interest and this person was reinstated at
the full Board meeting just recently without a full vetting by the Personnel Committee. I don’t think that’s
appropriate. Alderman Sheehan, you also pointed out that the situation I was speaking about for the land was
just pertaining to land that one building was going to be put on but the rest of the property which is subject to
two different appraisals, I didn’t know that so that will be interesting to watch in the future. How is that going to
be appraised, are we going to give that land away too? Lot 40-34 and lot 40-48, it was agreed to sell that for
$1.00 and that land was appraised at $1.77 million. Pertaining to BIDA minutes not being posted on time, why
don’t we record those meetings and then just post an audio or make a commitment to get the minutes posted
within a two week timeframe. It was virtually months before some of these minutes were posted and there
were some very important decisions made and no one knew about them. Suggestion #2 is that the Board of
Aldermen need to insert themselves back into the BIDA development equation. If communications are not
improved then maybe, and this is not personal Alderman McCarthy, but a new liaison be assigned to ensure
proper information flow between BIDA and the Board of Aldermen because currently, this is not happening. As
recommended last November, schedule a public overview of this development project at a full Board meeting.
Topics to be discussed could be what has occurred thus far, what are the next steps and strategies? There
have been several concepts over the last several years with this Renaissance Project and it would be nice to
understand what the next one is going to be. Justify whatever effort is currently being considered. Provide
clear and understandable justification to whatever is being contemplated so that the public can understand it
and ask questions. Once the public overview meeting has been held, have quarterly informational meetings at
the full Board meeting. After the presentations, allow for question and answer sessions which also include
citizen questions. Regarding the David W. Dean Skateboard Park, leave it where it is. Let this gem be part of
the overall development of this area. The youth of the city are just as important as any development project.
Let the youth keep the place where they have and let the developers and the city develop around that.
Alderman Deane did a lot of work on that skateboard park, that’s why your name is on it. I know that you have
done a lot of work trying to look for an alternative space so I think this suggestion would relieve a lot of
pressure and stress that I think you felt over this even though it wasn’t your issue to bear. I thank you for that.
If the park has to be moved and a suitable site found, then let the developers pay for the cost of relocation.
This park was put in place and paid for and there was an announcement that the developers would pay for it in
the past and now they are not. If putting up apartment buildings is that justifiable then certainly the developers
can pay for the relocation and the resurrection of the David W. Deane Skateboard Park if necessary. Let’s see
what else can be done in that area within reason? Regarding the Planning and Economic Development
Committee, a lot of people have noticed that there has been a real good proactive effort in highlighting
potential economic development issues within the city and I’d like to thank Alderman Moriarty and his crew for
doing that. I think within the last year there has been more meetings and more good information than the
previous several years of that committee. Thank you for the opportunity to speak.
Board of Aldermen - 1/13/15 Page 14
REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Alderman Donchess
I wanted to take a moment to mention the passing of Adam Guereckis who served as a Ward 7 Alderman for
12 years from about 1984 through about 1996. I served with him for 7 years. He passed away just before the
year was out in 2014. He served with distinction here in the Aldermanic Chamber. He was a good,
compassionate man who was very service orientated being on the Harbor Homes Board of Directors for
decades. I think many people will miss him.
Alderwoman Melizzi-Golja
The last major event of the last calendar year was the swearing in of our new police chief and I want to
welcome him and wish him well in his new positon; Chief Lavoie.
Alderman Wilshire
Since I was the first to speak I didn’t by any means not to thank the Mayor or be premature about her leaving
because we still have a whole year to work with you. Also, my condolences to the Guereckis family. Adam
was a terrific guy and a great Alderman and a good service orientated citizen here in Nashua.
Mayor Lozeau
I appreciate the opportunity to speak about Mr. Guereckis. I didn’t say anything in my opening remarks
because I concentrated on something else and I didn’t want to mix the two. The Guereckis family, as many of
you know, followed many of them in their father’s footsteps about being dedicated to the community. I actually
served with Mr. Guereckis as a State Representative, that’s how I first met him. He was ending his term up
there as I was beginning and like many of you in this room had great respect for him and what he did for the
community. I had the opportunity to go to the wake and speak to his children. We did recognition for him and
he was unable to come and receive that recognition so I went to his home and presented it to him and he was
so excited about it. He was of the generation who really understood about the value of giving back and so I
appreciate his service to the community and we were lucky to have him.
Alderman McCarthy
I would like to extend my condolences to the Guereckis family and while my term didn’t overlap with Adam’s, I
knew him reasonably well from having run into him a lot when I was first on the Board; less so in recent years
as he became less able to get out a lot. When I was first on the Board I would speak to him a lot about things
that were going on and always valued his opinion. He will be sorely missed.
President Deane
I used to get an opinion from Mr. Guereckis every time it snowed. He would come out and say “David, don’t
leave any snow in front of my garage.” He was a great guy. He and his wife were very nice people.
Alderwoman Brown
I don’t have the information for the D.O.T. at the airport for this Thursday. Do either Alderman McCarthy or
Alderman Schoneman have it?
Alderman Schoneman
I know its Thursday and I think it’s at 5:30pm at the Daniel Webster College.
Board of Aldermen - 1/13/15 Page 15
Committee announcements:
Alderman Wilshire
Thursday, January 15th is the Human Affairs Committee at 7:00pm.
Alderman Moriarty
One week from today is the PEDC and then a week from tomorrow we have Finance.
Alderman Donchess
We have an Infrastructure Committee meeting at 7:00pm.
President Deane
I wanted to let the Board know that there is a Budget Review Committee meeting on February 9 th and I’ve
reached out to Representative Harvey and we have a tentative date of the 5th of February to meet with the
delegation. I’ve also reached out to both the police and fire departments to have them come in and have some
discussions about their operations and how things are trending in both of those departments prior to our
Budget session starting. We are going to meet with the police department on the 2 nd of March at 7:00 p.m. I
did speak with Chief Morrissey and he is speaking with the commissioner’s and will get back to me and we will
schedule that meeting as well.
ADJOURNMENT
MOTION BY ALDERMAN CHASSE THAT THE JANUARY 13, 2015, MEETING
OF THE BOARD OF ALDERMEN BE ADJOURNED
MOTION CARRIED
The meeting was declared adjourned at 8:46 p.m.
Attest: Paul R. Bergeron, City Clerk
Agenda
AGENDA MEETING OF THE BOARD OF ALPERMEN JANUARY 13. 2015
1. PRESIDENT DAVID W. DEANE CALLS ASSEMBLY TO ORDER
2. PRAYER OFFERED BY CITY CLERK PAUL R. BERGERON
3. PLEDGE TO THE FLAG LED BY ALDERMAN RICHARD A. DOWD
4. ROLL CALL
5. REMARKS BY THE MAYOR
6. RESPONSE TO REMARKS OF THE MAYOR
7. RECOGNITIONS
8. READING MINUTES OF PREVIOUS MEETING
Board of Aldermen 12/23/14
9. COMMUNICATIONS
From: Mayor Donnalee Lozeau
Re: Operating Agreement with Essex Power Services, Inc.
PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED
UPON THIS EVENING
10. PETITIONS
11. NOMINATIONS, APPOINTMENTS AND ELECTIONS
Appointments by the Mayor
Appointment by President of the Board of Aldermen
Appointment of Timothy Lavoie to the Capital Equipment Reserve Fund
• Tabled 8/12/14
12. REPORTS OF COMMITTEE
Finance Committee 01 /07/15
Personnel/Administrative Affairs Committee 12/22/14
Planning & Economic Development Committee 12/16/14
Planning & Economic Development Committee 01/06/15
13. WRITTEN REPORTS FROM LIAISONS
14. CONFIRMATION OF MAYOR'S APPOINTMENTS
UNFINISHED BUSINESS - RESOLUTIONS
R-14-092, Amended
Endorsers: Mayor Donnalee Lozeau
Alderman-at-Large Lori Wilshire
Alderwoman Pamela T. Brown
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO AN AGREEMENT WITH CVS
MANCHESTER NH, LLC FOR FUTURE PARKING RIGHTS AT THE CITY OWNED
PARKING LOT LOCATED BEHIND CVS PHARMACY
• Finance Committee Recommends: Final Passage as Amended
UNFINISHED BUSINESS - ORDINANCES
NEW BUSINESS - RESOLUTIONS
R-15-102
Endorser: Alderman Richard A. Dowd
AUTHORIZING THE TRANSFER OF UP TO $650,000 FROM THE SCHOOL CAPITAL
RESERVE FUND INTO CAPITAL PROJECT ACTIVITY "SCHOOL IMPROVEMENTS"
FOR REPLACEMENT OF THE HIGH SCHOOLS' RUBBERIZED GYM FLOORS
R-15-103
Endorsers:
Mayor Donnalee Lozeau
Alderman-at-Large Lori Wilshire
AUTHORIZATION TO OFFER TO PURCHASE LAND AND BUILDINGS AT 11-13 MULBERRY
STREET (MAP 82, LOT 26) FOR RELOCATION OF THE DIVISION OF PUBLIC HEALTH AND
COMMUNITY SERVICES
R-15-104
Endorser: Mayor Donnalee Lozeau
ESTABLISHING AN EXPENDABLE TRUST FUND FOR APPROPRIATIONS FOR THE
PURPOSE OF OPERATING THE JACKSON MILLS DAM AND APPROPRIATING $240,000
FROM UNDESIGNATED FUND BALANCE INTO THE EXPENDABLE TRUST FUND
NEW BUSINESS - ORDINANCES
0-15-038
Endorsers:Mayor Donnalee Lozeau
Alderman-at-Large Daniel T. Moriarty
AMENDING THE COMPOSITION OF THE CABLE TELEVISION ADVISORY BOARD
PERIOD FOR GENERAL PUBLIC COMMENT
REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Committee announcements:
ADJOURNMENT
Qßormafee l£ozeaa
MAYOR
To:
From:
Date: January 9,2015
Re: Operating Agreement with Essex Power Services, Inc.
As the Finance Committee has approved the above referenced item at its
January 7, 2015 meeting, I request the Board of Aldermen's concurrence and
approval of the Operating Agreement with Essex Power Services, Inc. for the
Jackson Mills Dam. Approval is 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 the contract
shall become binding on the City.
Attached please find Chief Financial Officer's Memo #15-144 regarding this
contract award.
229 Main Street • PO Box 2019 • Nashua, NH 03061-2019
603.589.3260 • fax 603.594.3450 • NashuaMayor@NashuaNH.gov
City of Nashua
Central Purchasing
229 Main Street
Nashua NH 03060
603-589-3330 Fax: 603-589-3344
December 31,2014
Memo #15-144
TO: MAYOR LOZEAU
FINANCE COMMITTEE
SUBJECT: CONTRACT AWARD TO ESSEX POWER SERVICES, INC FOR THE OPERATION OF
THE JACKSON MILLS DAM (VALUE: $45,000)
The City leased the Jackson Mills Dam and certain rights on the Nashua River by Lease dated July 18,
1984, as amended, to Nashua Hydro Associates ("NHA"). NHA built the Jackson Mills hydroelectric
project on the leased property ("Project"). Title to the Project was held by NHA during the Lease term.
The Lease expired on December 20, 2014 and at 12:01 am on December 21, 2014, the City took
ownership and control of the Project.
The City requires administrative, operating and maintenance services to continue the operation of the
Project. Essex Power Services, Inc. ("EPSI"), on behalf of NHA, has operated the Project since its
inception in 1984 and is intimately familiar with the operation, maintenance and administrative
requirements of the project. EPSI has in its employ personnel with the skills necessary to administer,
operate and maintain hydroelectric generating facilities and associated equipment. This contract is for
EPSI to continue to operate, maintain and administer the Project for the City for one year with a one year
option.
The proposed contract has not been completed as of the date of this communication and will be provided
as soon as possible via email prior to the January 7,2015 Finance Committee Meeting.
Ce: L. Fauteux
Page 1 of 12
CONTRACT FOR SERVICES
This Contract for services dated as of January > 2015 is by and between, the City of
Nashua, New Hampshire (the "City"), a New Hampshire municipal corporation, having a
principal place of business at 229 Main Street, Nashua, New Hampshire 03060 and Essex Power
Services, Inc., a Delaware corporation, ("EPSI") with its principal office at 55 Union Street, 4th
Floor, Boston, Massachusetts 02108.
WHEREAS, the City leased certain property and rights defined as the Water Power
Properties in Section 1 of a certain Lease dated July 18,1984 as amended by Amendment to Lease
dated November 21, 1984, (the "Lease") to Nashua Hydro Associates ("NHA"), which Water
Power Properties are located on the Nashua River in Nashua, NH;
WHEREAS, the City and NHA were also party to a certain multiparty Agreement dated
September 1, 1983, as amended by Amendment to Lease dated November 21, 1984, and Second
Amendment to Lease dated November 21, 1984 (the "Agreement"):
WHEREAS, NHA built or installed structures, improvements, equipment and fixtures on
and for the Water Power Properties (the "Improvements"), title to which was held by NHA during
the Lease term, and the Water Power Properties and Improvements are known as the Jackson Mills
hydroelectric project (together, the "Project"):
WHEREAS, pursuant to Section 9(e) of the Lease, at 12:01 am on December 21,2014, the
City took ownership and control of the Improvements and ownership and control of the Water
Power Properties reverted to the City;
WHEREAS, the City and EPSI are party to a Contract for Services dated December 19,
2014, with a thirty (30) day term for administrative, operating and maintenance services for the
operation of the Project (the "Interim Contract");
WHEREAS, the City requires administrative, operating and maintenance services to
continue the operation of the Project;
WHEREAS, EPSI, on behalf of NHA, has operated the Jackson Mills project since its
inception in 1984 and is intimately familiar with the operation, maintenance and administrative
requirements of the project;
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
Page 2 of 12
WHEREAS, EPSI has in its employ personnel with the skills necessary to administer,
operate and maintain hydroelectric generating facilities and associated equipment; and
WHEREAS, the City wishes for EPSI to continue to operate, maintain and administer the
Project.
NOW THEREFORE, in consideration of the mutual promises herein contained, the parties
agree as follows:
1. Purpose
This Contract for Services, entered into by and between the City and EPSI, sets forth the
terms and conditions under which EPSI will supply required administrative, operating,
and, maintenance services (the "Services") to the City for the Project.
2. Term
The term of the Contract for Services shall commence as of 12:01 am January , 2015
and continue until 11:59 pm December 31, 2015, with a one year option to extend
exercisable upon the City and EPSI's mutual agreement subject to the Extension Terms
described in Exhibit B. To exercise the extension, the City shall send written notice to
EPSI by September 1, 2015, unless the Contract for Services is earlier terminated in
accordance with this agreement, and EPSI shall have twenty (20) days to respond in
writing from the date the notice is sent by the City. If EPSI does not respond to the City in
writing within the twenty days, the extension shall be deemed to be granted.
3. Scope of Work
The Services are described in Exhibit A attached hereto and made a part hereof. Any
services requested by the City beyond the scope of those enumerated in Exhibit A may, at
the sole discretion of EPSI, be provided.
4. Citv Responsibilities
As owner of the Project the City shall be the entity named on all contracts, regulatory
correspondence and other legal documents. The City, at its sole discretion, may name
EPSI as its designee, to act on its behalf to take such action as necessary to ensure
continued operation of the Project.
The City shall obtain all property and liability insurance policies customarily maintained
for the protection of a hydroelectric project, and shall maintain such policies for the term of
this agreement.
City shall be responsible for paying for and providing utility services, including but not
limited to phone, electrical station and internet service (the "Utilities"). City shall ensure
that Utilities are available to the Project for the term of this Agreement.
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
Page 3 of 12
The City is responsible for any and all Project and Project Crestgate operating and
regulatory responsibilities as of the date of this Agreement.
5. EPSI responsibilities
EPSI agrees to make available, as necessary, qualified operating and administrative
personnel necessary to ensure continued safe and compliant operation of the Project
EPSI shall obtain and maintain insurance coverage for workers compensation in
accordance with state law for the term of this Agreement.
6. Compensation
The City shall pay EPSI for services performed within the scope of this contract according
to the schedule of compensation set forth in Exhibit B attached hereto.
7. Expenses
The City shall also reimburse EPSI for reasonable out-of-pocket expenses associated with
any services outside the scope of Exhibit A including, but not limited to, the following:
a) Consumables, and equipment rentals, maintenance and repair supplies
and miscellaneous hardware not normally used by EPSI in the operation
of hydroelectric plants.
8. Billing and Payment
Invoices for operating and maintenance and third party expenses are to be submitted by
EPSI to the City within 10 days of the end each month.
Administrative services shall be billed quarterly and will be included in the operating,
maintenance and third party March, June, September and December invoices. To the
extent additional administrative fees are due for Project generation in 2015 pursuant to
Exhibit B, EPSI will submit such invoice to the City by January 15,2016.
Payment in full is due within 30 days of receipt of invoices. Invoices shall be in such form
and reasonable detail as necessary to identify properly all costs.
9. Project Transition
The City acknowledges there may be certain costs necessary for the continued operation of
the Project (such as Utility expenses) that may not be assumed by the City. City shall
reimburse EPSI, for any such costs incurred after December 20, 2014 by EPSI or other
third parties until the City has assumed responsibility for those costs. These costs include,
but are not limited to, the Utilities described in Section 4.
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
Page 4 of 12
10. Assignment
Neither this Contract for Services nor any interest therein may be assigned by either party
without the prior written authorization of the other party. Any assignee must agree in
writing to be bound by the terms and conditions of this Contract for Services.
11. Status of Contractor
EPSI's status under this Contract for Services shall be that of an independent contractor
and neither EPSI nor its employees or agents shall be deemed employees or agents of the
City's. Notwithstanding the terms of this agreement, the City retains legal responsibility
to operate and maintain the Project.
12. Indemnification
EPSI shall indemnify and hold the City harmless from any and all liability, claims and
expenses of any kind (including reasonable attorney's fees) for any and all injury including
death to any and all persons whomsoever, and for any and all damage to property arising
from or in connection with the performance of EPSI's services hereunder. The City shall
indemnify and hold EPSI and EPSI's agents and employees harmless from any liability or
claim arising out of the City's performance in connection with this agreement.
13. Representations and Warranties by EPSI
EPSI makes no representations or warranties, expressed or implied, including but not
limited to, any representations and warranties as to the design or condition of the Project
14. Limitation of Liability
It is acknowledged and agreed that EPSI is not guaranteeing the level or production of
electric energy from the Project or the achievement of any particular operating results and
that EPSI shall not be liable for any loss of revenues resulting from any lack of production
of electric energy or the cost for the failure of any equipment or structures at the plant,
except to the extent caused by gross negligence or willful misconduct of EPSI. Nothing in
this section shall be construed to limit EPSI's obligations set forth elsewhere in this
Agreement.
15. Force Majeure
If either party is rendered wholly or partly unable to perform its obligations under this
Agreement because of Force Majeure, that party will be excused from whatever
performance is affected by the Force Majeure to the extent so affected; provided, however,
that:
a) The nonperforming party, within two weeks after it becomes aware of the
occurrence of the Force Majeure, give the other party written notice describing the
particulars of the occurrence;
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
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b) The suspension of performance is of no greater scope and of no longer duration
than is reasonably required by the Force Majeure;
c) No obligations of either party which arose before the occurrence causing the
suspension of performance are excused as a result of the occurrence;
d) The nonperforming party uses its best efforts to remedy its inability to perform; and
e) Nothing in this Agreement shall require a party to settle any strike, work stoppage
or other labor difficulty.
16. Notice
All notices, requests, demands, and other communication hereunder shall be in writing and
shall be deemed to have been duly given when delivered or mailed by registered or
certified mail, postage prepaid, by fax, or by any overnight delivery service that requires a
signature to effect delivery to the other party to the address set forth in the first paragraph
hereof or to such other address as their party may designate in writing.
Notices shall be addressed as follows:
If to the City, to:
For Administrative, Legal and Financial Matters
City of Nashua
Attention: Mayor
229 Main Street
Nashua, New Hampshire 03060
For Operating and Regulatory Matters
City of Nashua
Attention: Jackson Mills Dam Safety Officer
229 Main Street
Nashua, New Hampshire 03060
If to EPSI, to:
Essex Power Services, Inc.
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c/o Essex Hydro Associates
55 Union St. 4th Floor
Boston, MA
17. Entire Agreement
All agreements made by the parties hereto are contained in this Contract for Services, it
being the intention of the parties to incorporate in this contract their full and complete
understanding. No amendment, modification, or addition hereto shall have effect or be
binding unless in writing executed by each of the parties hereto.
18. Severability
If one or more of the provisions of this Contract for Services should be contrary to any
express provisions of law or contrary to the policy of express law, though not expressly
prohibited, then such covenant or covenants, agreement or agreements shall be null and
void and shall be deemed separable from the remaining provisions herein and shall in no
way affect the validity of this contract or the effect of any remaining provision.
19. Applicable Law
This Contract is intended to constitute a contract interpreted in accordance with the laws of
the State of New Hampshire.
20. Dispute Resolution
a) The parties shall attempt to resolve all disputes arising out of or in connection with
the interpretation or application of any of the provisions of this Contract for
Services or in connection with the determination of any other matters arising under
this Contract for Services (each, a "Dispute") by mutual agreement in accordance
with this Section 20. If any Dispute arises between the parties, then the disputing
party shall promptly notify the non-disputing party of the Dispute and each party
shall cause a mid-level officer of its management with decision-making authority
to meet at the offices of the non-disputing party, or at any other mutually agreed
location, and to negotiate and attempt to resolve the Dispute on an amicable basis
within twenty (20) days of the non-disputing party's receipt of notice of the
Dispute. If the parties fail to resolve the Dispute for any reason within the twenty
(20) day period identified above, then each party shall, within five (5) days after the
expiration of such period, nominate a senior officer of its management with
decision-making authority to meet at the offices of the non-disputing party, or at
any other mutually agreed location, to attempt to resolve the Dispute. If the
parties are unable to resolve the Dispute to their mutual satisfaction for any reason
within twenty (20) days after the nomination of such senior officers or, failing any
such nomination of a mid-level or senior officer, within sixty (60) days following
the date of delivery of the initial notice of Dispute, then each party shall be free to
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
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pursue any right or remedy available at law or in equity, subject to and in
accordance with this License.
b) Unless otherwise agreed in writing, the parties shall continue to perform their
respective obligations under this Contract for Services during any proceeding by
the parties in accordance with this Section 20.
c) In any judicial proceeding arising from or related to any Dispute, each of the parties
irrevocably consents and agrees that any legal action or proceedings with respect to
this Contract for Services shall be brought in a court of competent jurisdiction in
New Hampshire, and that, by execution and delivery of this Contract for Services,
each party (i) accepts the exclusive jurisdiction of the aforesaid court, (ii)
irrevocably agrees to be bound by any final judgment (after any and all appeals) of
any such court, (iii) irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of venue of any suit,
action, or proceedings with respect to this Contract for Services brought in any
such court, and further irrevocably waives, to the fullest extent permitted by law,
any claim that any such suit, action, or proceeding brought in any such court has
been brought in any inconvenient forum, (iv) agrees that service of process in any
such action may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such party at its
notice address set forth herein, or at such other address of which the other party
hereto shall have been notified and (v) agrees that nothing herein shall affect the
right to effect service of process in any other manner permitted by law.
(d) Should any Dispute result in a judicial proceeding, each of the parties knowingly,
voluntarily, and intentionally waives any right it may have to a trial by jury in
respect of any such proceeding. Furthermore, each of the parties waives any right
to consolidate any action in which a jury trial has been waived with any other action
in which a jury trial cannot be or has not been waived.
21. Counterparts
This Agreement may be executed by .pdf or facsimile signatures in any number of
counterparts, each of which shall be deemed an original, but all such counterparts shall
together constitute one and the same instrument.
22. Waiver
The failure of any party at any time or times to require performance of any provision of this
Contract for Services in no manner affects the party's right at a later time to enforce the
same. No waiver by any party of any breach of any term contained in this Contract for
Services in any one or more instances shall be deemed to be or construed as a further or
continuing waiver of such breach, or a waiver of any breach of any other term. No
representation, promise, inducement or statement of intention has been made by either
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
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party which is not embodied in this Contract for Services or in the documents referred to
herein, and neither party shall be bound by or liable for any alleged representation,
promise, inducement or statement of intention not set forth herein.
[Signature page follows.]
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IN WITNESS WHEREOF, we have hereunto set our hands effective on the day and year first
above-written.
CITY OF NASHUA
By:
Witness Donnalee Lozeau, Mayor, Duly Authorized
ESSEX POWER SERVICES, INC.
By:
Witness Thomas Tarpey, President, Duly Authorized
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
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EXHIBIT A
CONTRACT FOR SERVICES: SCOPE OF WORK
Administrative
1. General
EPSI shall render such administrative services as required to conduct administrative liaison
between the Project and the City, to compile any and all financial data required by the City,
to provide all other services required by federal, state and local regulatory bodies or
agencies, to provide such personnel services as necessary to administer operations of the
Projcct and the sale of Project energy, capacity and related environmental attributes and to
provide such other miscellaneous administrative services as the City shall require in the
normal course operating the Project.
2. Specific Responsibilities:
a) Provide annual budget estimating costs associated with running the project.
b) Provide project information for City financial statements (if necessary).
c) Compile necessary financial and administrative data for FERC reporting purposes.
d) Negotiate and sell the energy, capacity and environmental attributes of the project.
e) Prepare invoices for sale of energy, capacity and environmental benefits.
f) Prepare FERC and New Hampshire DES required reports or filings for signature by
the City and submission to the applicable agency
g) Conduct liaison with FERC and New Hampshire DES regarding all Project issues.
h) Monitor regulatory and state agencies to support on-going business activities.
i) Provide quarterly updates on the Project's operational performance including actual
generation, revenues and 3rd Party Vendor costs billed directly to EPSl.to the City's
designated point of contact.
Operations and Maintenance
1. General
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Provide such supervisory, operating and maintenance services as required to insure that the
Jackson Mills hydroelectric project is properly and reliably operated and maintained, that
repairs are undertaken and completed in a timely fashion, that the Project is in compliance
with all applicable laws, regulations, policies, orders and agreements of or with any court
or regulatory agency of competent jurisdiction, and that output for the Project is
maximized.
2. Specific Responsibilities:
a) Hire, train and schedule operators.
b) Determine periodic maintenance requirements and supervise their
implementation.
c) Supervise repairs of a usual and customary nature.
d) Provide operating, maintenance and repair personnel.
e) Acquire necessary third party services and material for operating
maintenance and repair tasks.
f) Respond to any other event not in the ordinary course of business.
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EXHIBIT B
CONTRACT FOR SERVICES: RATES
Administrative
a) Services will be paid as a variable fee based on the following formula:
b) During the term of this agreement, for generation up to 4,725,000 kilowatt hours ("kWhs")
EPSI will receive a fee equal to 20% of the Project's revenues with a minimum fee of
$45,000 plus 50% of any revenues attributable to generation over 4,725,000 kWhs (the
"Management Fee"). For purposes of Management Fee calculations, kWhs generated
during the Interim Contract shall be included in any calculations of total kWlis. Further,
the $7,000 owed to EPSI by the City per the Interim Contract shall be applied towards the
Management Fee for the first year of this Agreement.
Operations and Maintenance
a) Operations and Maintenance services will be billed at $44 per hour.
Third partv costs
a) Third party expenses will be billed at cost.
Extension Terms
a) Operations and Maintenance services will be billed at $45 per hour
b) For the purposes of Management Fee calculations, total kWhs shall be from January 1,
2016 through December 31,2016
20150105 EPSI City of Nashua Operating Agreement 1 year FINAL
APPOINTMENTS BY THE MAYOR
JANUARY 13, 2015
Cultural Connections Commission
Fouad Mahfuz (New Appointment) Term to Expire: January 31, 2018
265 Dutton Street #2
Lowell, MA 01852
Historic District Commission
Christopher Barrett Term to Expire: January 31,2018
(Moving from Alternate to Full Member)
65B Manchester Street
Nashua, NH 03064
Hunt Memorial Building Board of Trustees
Brenda Baron (New Appointment) Term to Expire: December 31, 2019
5 Ashland Street
Nashua, NH 03064
I respectfully request that these appointments be confirmed.
Donnalee Lozeau
Mayor
APPOINTMENT BY THE PRESIDENT OF THE BOARD OF ALDERMEN
JANUARY 13, 2015
Auditorium Commission
John J. McAllister (Reappointment) For a Term to Expire: December 31, 2017
257 Wheeler Road
Hollis, NH 03049
I respectfully request that this appointment be confirmed.
David W. Deane, President
Board of Aldermen