Aldermen, Board of

A regular meeting of the Board of Aldermen was held Tuesday, May 12, 2015, at 7:30 p.m. in the Aldermanic Chamber. President David W. Deane presided; Deputy City Clerk Patricia Piecuch recorded. Prayer was offered by Deputy City Clerk Patricia Piecuch; Alderman McCarthy led in the Pledge to the Flag. President Deane Before I ask the Clerk to take the roll, Alderman Moriarty is participating by telephone and under the terms of the state law that allows him to do that, he needs to explain why he can’t attend, if he can hear us, and who he is with, if anyone. Alderman Moriarty stated the reason why he could not attend, confirmed that he could hear the proceedings and stated that he was alone. President Deane Acknowledged that those present could hear Alderman Moriarty as well. The roll call was taken with 13 members of the Board of Aldermen present; Alderman Moriarty was not in attendance but participated in the meeting via telecommunication; Alderwoman Mary Ann Melizzi-Golja were recorded absent. Her Honor Donnalee Lozeau and Corporation Counsel Stephen M. Bennett were also in attendance. President Deane Before we begin I am going to recognize Alderman McCarthy to make a motion so we can accept procedural motions without the roll call vote. MOTION BY ALDERMAN McCARTHY THAT THE RULES BE SO FAR SUSPENDED AS TO ALLOW FOR THE ACCEPTANCE OF PROCEDURAL ACTIONS WITHOUT OBJECTION A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED REMARKS BY THE MAYOR Mayor Lozeau I will begin this evening by sharing with you that earlier this evening the Nashua Preservation Alliance held their annual preservation achievement awards in Concord and I wanted to send out congratulations to the Stabile Companies for receiving the Rehabilitation and Adaptive Use Award for the Cotton Mill Project. This award celebrates the excellence and recognizes outstanding projects and the people behind them. Board of Aldermen – 5/12/15 Page 2 I would next go to my Fiscal 2016 budget. I’d like to set it up with some of the information that I share with you each year, such as the state of the local economy. Our unemployment rate in March was 4.8% which is well below the national average, the unadjusted rate for March of 5.6%. As far as housing goes in our community, the median purchase price for homes in Nashua for 2014, was $243,000 which represents an increase of 1.7% compared to the prior year which was $239,000. The monthly median gross rental cost including utilities for Nashua $1,222. The CPIU Northeast over the previous 12-month period March to March, decreased .4%. Food prices rose by 2.2% and the energy index decreased by 19.7% which is composed of gasoline, natural gas and electricity. I’d like to recap the 2015 budget. Last years adopted budget came in under the spending cap at 2.1% and we were able to continue the stable tax rate and there was a modest tax rate of 2.3%. The budget provided for continued investments in our infrastructure like our wastewater system upgrades, our capital improvement for buildings, the Broad Street School and fire department. We doubled the city paving budget and created a fund for paving so we brought that up to $2 million. We’ve had timely replacement of our capital equipment and we also completed the next phase of the Main Street Sidewalk project and that’s just a sample of our infrastructure investment. The proposed 2016 budget is my eight and final budget. The major challenges for 2016 were the employer pension cost that increased by $1.9 million in FY 16’ due to the biennial rate increases in the employer rates from the New Hampshire Retirement System. If you add in the FICA and Medi costs that brings that $1.9 million to $2.2 million. $2.1 million of that $2.2 million is attributable to schools, police and fire; and in that order. This budget fully funds this increase in pension costs. This year’s spending cap index, the gross domestic product implicit price deflator of state and local governments gives us a 1.5% spending cap. The proposed budget comes in under the spending cap by $105,000. This FY 16’ proposed budget is $244.8 million which represents a $4 million increase over FY 15’. This budget as presented is predicated on the passage tonight of R-15-137 as discussed and recommended for passage from the Budget Review Committee last evening and is on the agenda before you. As proposed, this budget does not require the passage of R-15-110 – Establishing an Expendable Trust Fund for Employee Pensions which is currently tabled at the full Board. I requested no more than a 1.5% increase over the 2015 levels for schools, police and fire and no more than 1% for all other divisional budgets. All divisions were able to meet this request with a few exceptions, of note school and fire. This budget funds the school budget at 1.68% which is $1.693 million above last year’s budget. The budget they presented and voted on out of the Board of Education was just under a 2% increase. They went back trying to get to 1.5% and had lengthy discussions and provided a list of items that could get them to the 1.68%. I believe the way that this has been done that we can avoid any layoffs due to budget cuts and instead be looking at those that are either are attrition or different choices that the school is making based on classroom size and priorities. The revenues in this budget; we continue to budget those conservatively. We have seen increases in local revenues like motor vehicles. We have continued depressed earnings on investments on historically low interest rates and of course state funding is always a concern. We are closely monitoring the potential impacts to Nashua from the decisions made by the state and so far we don’t anticipate any cuts for FY16’ to the city budget. We do however, see that additional funds that had been promised, such as the gas tax increase which we were supposed to have a share in is being talked about right now as not sharing it in. The catch up on rooms and meals that had been suspended and promised to come back in FY 16’, that’s being talked about not coming back. This budget does not include any anticipated increase of funds even though they may have been promised from the state. As we move forward I intend to share the budget summary sheet that we have been working on to show you exactly where those are and how much they are because although that we may see no cuts to our existing funds for FY 16’ I believe that we are in jeopardy for funds for FY 17’. I’d like to mention a couple of new items that you are going to see in this budget that I have proposed. Two of them stand out. One of them is we worked collaboratively with the library to look at the administrator position at the Hunt Memorial Building that has been a part-time position. We met with the Art’s Commission to talk about their needs and what they believe are the needs for the art’s in this community to have a coordinated, organized effort to help support that. While we weren’t able to meet the request by the Nashua Art’s Commission for a full-time director level position for the art’s, we were able to work with the library to turn that part-time position into a full-time position that we would call the Hunt’s Memorial Building and Art’s administrator. The library is willing to cover the cost of that additional part-time position to make it a full-time position and that position organizationally will report to the library which we believe will help us to have somebody in that position that brings some of the expertise we are looking at to the table and that’s an increase to the budget of $17,000. In addition, many of you know that I have been talking about our waterways regarding our concerns both with rivers, Board of Aldermen – 5/12/15 Page 3 canals, ponds, invasive species, pollution, and hydro dams. One of the recommendations of the Waterways Committee that met included the creation of a waterways manager position. I worked very hard with some of our cabinet level staff to talk about how we might manage the waterways and I think all of you would agree that none of our director’s really have the time in their current responsibilities to take on the added very full-time responsibilities of the waterways, particularly as we are looking at Mine Falls and what the future might hold for that. This budget funds a waterways manager position at $70,000 to be housed in the Community Development Division to report directly to the Director of Community Development and will take on, as proposed, the oversight of all of those things that I mentioned with the exception of the levy along the Merrimack River which I proposed stay with public works and engineering who has been working with the Army Corp. for those things that need to be done there. I think in the long-term that position should service well and if it’s anything like emergency management, it will likely bring in far more money than its salary would cost to the city and to our success with our waterways. I want to mention that the budget provides for other capital investments as well. Our CERF plan, the Capital Equipment Reserve Fund, in 2010, we put together a plan for the systematic replacement of our capital equipment and every year we work with the different divisions to confirm the costs are accurate and the replacement year is appropriate and the vehicle is necessary. We have also added in all of the other city departments. I think we have now included every city division in the CERF plan and new this year we have also included our transit buses. You’ll note a new budget page in the proposed budget on page 258 in the blue pages. The proposed CERF purchase for this fiscal year which reflects the discussions that you have been having in the Budget Committee. This year you will not a reduction from last year’s proposed FY 16’ plan primarily due to a longer than expected life span for some of our trash trucks. We were able to reduce the appropriation by about $800,000. Even better news, over the years we have talked about the good results of the decisions that we have collectively made regarding our healthcare benefits. We level funded the healthcare benefits appropriation; from 2009 to 2011 we were able to keep it level funded. As a result of projected cost increases we worked with the employees on strategies to minimize a sharp rise in our healthcare costs and increase the appropriation in FY 12’. As you recall the strategies were that we introduce planned designed changes such as increased co-pays and deductibles. We added the high deductible plan with the companion HSA and we have managed to keep our working rates stable and of course the employees were willing to take on a greater share of the working rate. In FY 12’ we increased that healthcare benefit appropriation, however we have experienced such great results regarding the cost savings and in large measure due to employee behavior based on some of the changes we have made, it allowed us to bring the appropriation back to the 2009 levels both in the FY 14’ and FY 15’ budget. We leveled it for a few years, went up a little bit anticipating an increase and brought it back down to the 2009 levels. We were also able to transition the over 65 retiree healthcare plan from the self-insured plan to a fully insured plan. As a result of all of these things we are proposing in this budget that we reduce that appropriation from $26 million to $25 million. I usually tell you about what I anticipate about a projected tax rate for the budget that I propose and each year I consistently tell you what’s important is a stable tax rate. You’ve never seen a tax increase of greater than 2.9% and our low has been .86%. This year again the increase will be less than 3%; if the budget passes as proposed I anticipate it will actually be closer to 2.5%. I never go through a budget without looking at our 2017 challenges; the next years challenges. Based on the current information, the spending cap index for 2017 could be less than 1%. That’s a huge challenge for FY 17’. The state may have of course cut more funds which I am very worried about. The salary increases and associated pension costs will also continue to be a challenge for every budget year for the foreseeable future. I also want to take a moment to thank my budget team. Along with all of the division directors who work very diligently to watch their pennies and their dollars; I’ve had the same budget team since I’ve been here which include Dave Fredette, City Treasurer, Rose Evans, Account Manager, and of course our CFO, John Griffin. You cannot do this level of work with this level of detail and accuracy without really great professionals and I thank them as this has been a particularly difficult year. I extend the city’s sympathies to the family of Officer Keith Trombley who served our city with pride and compassion. He was a committed and caring volunteer. The Nashua Police Department has lost a member of their family. The Governor has authorized that the flag in Nashua be flown at half-staff tomorrow. I also extend our sympathies to the family of Commissioner Tim Lavoie who led a very full life. He served for more than 15 years on the Board of Public Works. He was incredibly knowledgeable, thoughtful and hard working. Both his accomplishments and his loss will be felt by the city for many years to come. As always, I thank you for your kind and lengthy attention this evening. Board of Aldermen – 5/12/15 Page 4 RESPONSE TO REMARKS OF THE MAYOR – None RECOGNITION PERIOD – None READING MINUTES OF PREVIOUS MEETING There being no objection, President Deane declared the minutes of the Board of Aldermen meeting of April 28, 2015, accepted, placed on file and the reading suspended. COMMUNICATIONS There being no objection, President Deane declared that all communications be read by title only. From: Nashua Senior Activity Center Re: Resolution R-14-099 There being no objection, President Deane declared the communication accepted and placed on file. From: Daniel Richardson Re: Business & Industrial Development Authority (BIDA) Event called “Nashua Developers Showcase” There being no objection, President Deane declared the communication accepted and placed on file. From: Mayor Donnalee Lozeau Re: Community Development - Amendment to First Transit Contract with the City of Nashua MOTION BY ALDERWOMAN BROWN TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE FIRST AMENDMENT TO THE MULTI-YEAR AGREEMENT WITH FIRST TRANSIT, INC. A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED From: Mayor Donnalee Lozeau Re: Information Technology – Enterprise Asset Management/Work Order System MOTION BY ALDERMAN MCCARTHY TO ACCEPT, PLACE ON FILE AND AWARD THE MULTI-YEAR CONTRACT TO CARTEGRAPH SYSTEMS, INC. IN THE AMOUNT OF $287,640 Board of Aldermen – 5/12/15 Page 5 A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED From: Mayor Donnalee Lozeau Re: Five (5) 2016 Multi-year Contract Awards for Nashua Solid Waste MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE FOLLOWING MULTI-YEAR CONTRACTS: TO CHEMSERVE ENVIRONMENTAL ANALYSTS IN AN ANNUAL AMOUNT OF $31,651; TO ENVIRONMENTAL COMPLIANCE SERVICES, INC. IN AN ANNUAL AMOUNT OF $15,284; TO UNIVERSAL RECYCLING TECHNOLOGIES, LLC, IN AN ANNUAL AMOUNT NOT-TO-EXCEED $75,000; TO INTERSTATE REFRIGERANT RECOVERY, INC., IN AN ANNUAL AMOUNT NOT-TO-EXCEED $20,000; AND, AT NO CHARGE TO OLDCASTLE LAWN & GARDEN A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED From: Mayor Donnalee Lozeau Re: Engineering - Two (2) Contract Awards Exceeding $1,000,000 MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACTS TO DEFELICE CORPORATION IN THE AMOUNTS OF $1,127,913 AND $2,616,213 A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED There being no objection, President Deane declared the rules suspended to accept a communication and appoint Alderman-at-Large Lori Wilshire as the alternate liaison member to the Board of Fire Commissioners. Board of Aldermen – 5/12/15 Page 6 Alderman McCarthy I have no objection to that; I’m just wondering if after the position is filled are we going to revisit these committee assignments because we’ve been filling them one-by-one and whoever is elected won’t have any assignments by the time they are sworn in. President Deane We’ve filled two so far. We can look at it or revisit it, whatever the Board wants to do with that. Thank you, Alderman Wilshire, for stepping up. PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED UPON THIS EVENING Mr. Fred Teeboom, 24 Cheyenne Drive I would like to say before I address two resolutions, I would like to say that the Mayor has brought in eight budgets and I think all eight have been below the spending cap and you must be congratulated on that. The significance of that is that if you can add to the Mayor’s budget it takes 2/3 vote on a roll call. If you say you can do it without layoffs then that’s especially impressive. I did not think you could pull this off without layoffs because we keep awarding contracts that way exceed the spending cap index. Somewhere over the line layoffs have to happen to stay within the spending cap, it’s just laws of physics. I’d like to address R-15-137. These days I usually watch wrestling but I have to watch channel 16 and I was amazed that R-15-137 before was amended and it appropriated $300,000 for a generator and $200,000 for operations at the wastewater. To my amazement, first Alderman Deane and then Alderman Siegel proposed to raise the money from $300,000 to $440,000 even though the police representative said $300,000 was adequate. They said there needed to be more money but they never talked about specifics other than these two Aldermen; one of them found out they wanted a 400 KW emergency back- up generator for the police department. $300,000 for a back-up generator is a lot of money. Since I have a degree in electrical engineering and computer engineering I was amazed that these Aldermen raised the amount to $440,000 without any evidence that the $300,000 would not be adequate. I decided to make some inquiries and I don’t have all of the details but you can buy Caterpillar rebuild that’s 400 KW for $135,000 and if you want to add housing to it would be $25,000. Shipping would be about $3,000 and a trailer would be another $10,000. Nowhere could I find anything costing any more than $300,000 so why would you amend this to $440,000? At the same time you reduced the operational cost of wastewater plant operations from $200,000 to $60,000. How can you do that unless you didn’t need the $200,000 in the first place? There is no credibility for amending it. The other thing I wanted to mention is R-15-133, that’s the Pennichuck $25.5 million bonding. That’s a large amount for a bond. $16 million is for refinancing and that makes sense. $7 million is for a new building and then $2 million for odds and ends like insurance. I’ve spend quite a bit of my life back in the days before the PUC, with the PUC, and having meetings on this Board, and during the Pennichuck takeover there was a thing called CF Downer Model. It’s a very complicated model, probably the most complicated you’ll ever see, certainly the most complicated that I have ever seen. Great numbers of interlocking spreadsheets but one spreadsheet is not all that complicated. When you look at this particular resolution the acquisition debt of Pennichuck when it was acquired in 2012 was $157 million – in debt. That’s what they pay the City of Nashua $8 million a year for, $707,000 per month. In 2041 it will go to zero, it’s a 30 year debt. At the same time Pennichuck is a completely financed operation. At this point there is not a penny of equity in it, it’s all debt financed. When you talk about capital expenditures it starts at zero and every year you borrow about $7 million and every year thereafter you just keep borrowing $7 million so the $156 million goes down, the capital debt; the infrastructure goes up. Guess what, in 2041 when the acquisition debt is down to zero they cut expenditure debt is at $149 million and because the debt is at that point paid off it stays at $149 million. Debt carried by Pennichuck by that model will always be carried with the $149 million after 2041. The total debt – when Nashua bought Pennichuck they paid $157 million but they also acquired all of the debt that Pennichuck had on the books around $65 million. The CF Downer Model took that into account and the total debt for Pennichuck is $230 million; not a penny of equity because all of the equity was bought out. In 2025 the debt model will peak at $264 million and in 2041 it will be lowered to $74 million and in 2051 it goes to $169 million and supposedly Board of Aldermen – 5/12/15 Page 7 the total debt will slowly diminish unless you buy more stuff. When Pennichuck borrows $7 million per year they are supposed to take care of all of the infrastructure; there is no separate account for buildings, to replace the building on Will Street. The problem I have with Pennichuck Committee when the questions were asked, Mr. Goodhue, CFO, none of the committee members have the slightest idea how this financing operates and I was not surprised because it’s very complicated. Alderman McCarthy probably understands it because he was there from the beginning and testified before the Public Utilities Commission. Alderman Moriarty talked about initial public offering. A utility has nothing to do with an initial public offering. It’s not Alderman Moriarty’s fault, he’s just not into the financing of the utility. Is Pennichuck Special Committee being briefed on the CF Downer Model which they are supposed to follow? I know the taxpayers are tired of paying $8.5 million. This year you are going to find in your budget book there is an (inaudible) for $8.5 million from Pennichuck, its revenue that pays the debt of the $157 million paid to buy the place. The Pennichuck Committee, they wouldn’t have a clue what was being presented to them. I suggest that Alderman Moriarty calls a special meeting and call in the Board of Directors and CFO and go through the CF Downer Model. No one is looking for profit, there are no shareholders or dividends to be paid but there’s a huge debt to be paid to the City of Nashua. PETITIONS – None NOMINATIONS, APPOINTMENTS AND ELECTIONS Joint Convention with the Woodlawn Cemetery Board of Trustees There being no objection, President Deane declared that the Board of Aldermen meet in Joint Convention with the Woodlawn Cemetery Board of Trustees for the purpose of electing two trustees. President Deane called for nominations. Trustee Niles Jensen nominated Charles Farwell, Jr. and John Economopoulos for five-year terms to expire March 31, 2020 There being no objection, President Deane declared the nominations closed. A Viva Voce Roll Call vote was taken on the appointment of Charles Farwell, Jr. and John Economopoulos to the Woodlawn Cemetery Board of Trustees for terms to expire March 31, 2020, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 18 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane, Daniel Buslovich, John Economopoulos, Charles Farwell, Jr., Niles Jensen, Jr., Mayor Lozeau Nay: 0 MOTION CARRIED President Deane declared Charles Farwell, Jr. and John Economopoulos duly appointed to the Woodlawn Cemetery Board of Trustees for terms to expire March 31, 2020. Oath of Office administered by Corporation Counsel Stephen Bennett. There being no objection, President Deane declared that the convention now arise. Board of Aldermen – 5/12/15 Page 8 Appointment by the Mayor The following appointment by the Mayor was read into the record: Cultural Connections Committee Andrew C. Smith (Reappointment) Term to Expire: March 31, 2018 175 Concord Street Nashua, NH 03064 There being no objection, President Deane accepted the appointment by the Mayor as read and referred it to the Personnel/Administrative Affairs Committee. REPORTS OF COMMITTEE Committee on Infrastructure .............................................................. 04/22/15 There being no objection, President Deane declared the report of the April 22, 2015 Committee on Infrastructure accepted and placed on file. Committee on Infrastructure .............................................................. 05/04/15 MOTION BY ALDERMAN DONCHESS TO ACCEPT THE REPORT OF THE COMMITTEE ON INFRASTRUCTURE OF MAY 4, 2015, PLACE ON FILE AND THAT THE BOARD OF ALDERMEN ACCEPT THE BID FROM T31 REAL ESTATE, LLC, IN THE AMOUNT OF $25,000 FOR THE PURCHASE OF 23 BUCK STREET A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Planning & Economic Development Committee .................................. 04/21/15 There being no objection, President Deane declared the report of the April 21, 2015 Planning & Economic Development Committee accepted and placed on file. Pennichuck Water Special Committee ................................................ 05/05/15 There being no objection, President Deane declared the report of the May 5, 2015 Pennichuck Water Special Committee accepted and placed on file. There being no objection, President Deane suspended the rules to give an Oral Report of the Budget Review Committee meeting held last night regarding Resolution R-15-137. President Deane gave an oral report of the Budget Review Committee meeting of May 4, 2015, with respect to R-15-137. There being no objection, President Deane declared the oral report accepted and placed on file. Board of Aldermen – 5/12/15 Page 9 WRITTEN REPORTS FROM LIAISONS - None CONFIRMATION OF MAYOR'S APPOINTMENTS – None UNFINISHED BUSINESS – RESOLUTIONS R-15-110 Endorser: Mayor Donnalee Lozeau ESTABLISHING AN EXPENDABLE TRUST FUND FOR STATE EMPLOYER PENSION COSTS AND APPROPRIATING $2,730,000 FROM FUND BALANCE ASSIGNED FOR THIS PURPOSE INTO THE EXPENDABLE TRUST FUND  Amended & Tabled – 2/24/15 R-15-117 Endorser: Mayor Donnalee Lozeau Alderwoman Pamela T. Brown Alderman-at-Large Brian S. McCarthy REQUESTING DESIGNATION OF A “DOWNTOWN – SIMON STREET ECONOMIC REVITALIZATION ZONE Given its second reading; MOTION BY ALDERMAN MCCARTHY TO AMEND R-15-117 IN ITS ENTIRETY BY REPLACING IT WITH THE GOLDEN ROD COPY PROVIDED WITH THE AGENDA A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED MOTION BY ALDERMAN MCCARTHY FOR FINAL PASSAGE OF R-15-117 AS AMENDED A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Resolution R-15-117 declared duly adopted as amended. Board of Aldermen – 5/12/15 Page 10 R-15-132 Endorser: Alderwoman Pamela T. Brown AUTHORIZING THE CONVEYANCE OF A DISCONTINUED PORTION OF HUGHEY STREET TO SHEYLA FRANCISCHETTI Given its second reading; MOTION BY ALDERWOMAN BROWN FOR FINAL PASSAGE OF R-15-132 A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Resolution R-15-132 declared duly adopted. R-15-133 Endorsers: Mayor Donnalee Lozeau Alderman-at-Large Lori Wilshire Alderman Sean M. McGuinness APPROVING THE PROPOSAL OF PENNICHUCK CORPORATION TO BORROW AND ISSUE UP TO TWENTY-FIVE MILLION FIVE HUNDRED THOUSAND DOLLARS ($25,500,000) IN AN AGGREGATE PRINCIPAL AMOUNT OF TAX-EXEMPT BONDS AND/OR OTHER BORROWINGS Given its second reading; MOTION BY ALDERMAN WILSHIRE FOR FINAL PASSAGE OF R-15-133 ON THE QUESTION Alderman Moriarty First of all I take exception to Mr. Teeboom’s assertion that I don’t understand how this all works. I agree that we should have a meeting to discuss this and that’s why we had a meeting last week. He could have attended and asked all his questions but he chose not to. I can confidently say that they are on track with what the projections were and my initial instinct when I heard the $25 million was to vote no and I made a point of visiting the leadership of Pennichuck and went through the finances and through the future and they were able to answer all of my questions. The other comment Mr. Teeboom made that I think needs to be pointed out is that an IPO, of course, I understand the difference between an IPO and Pennichuck, they are unrelated. I said that as analogy. My question was, I was thinking in defense of taxpayers who might be thinking if Pennichuck is bringing in all of this debt, then for goodness sakes, will the company have any value whatsoever and I asked the question what is the net worth of Pennichuck Corporation and it was answered several different ways. One of the ways that people are used to is the idea of taxation prior to an initial public offering; that is what that comment was. Anyway, I am confident that the leadership of Pennichuck is outstanding and they are doing a great job and we are going in the correct direction and I am going to vote for this. Alderman McCarthy I’ve actually talked to Pennichuck’s CFO several times about where we are with regard to the plan for the purchase and I’m happy that they are on track. To say that there’s no equity is probably not rigorously accurate. If you look at the corporation the day we bought it, the assets of the corporation had a certain Board of Aldermen – 5/12/15 Page 11 valuation and the company had a certain amount of debt. We financed the note to refinance the debt and also to buy out the equity that was owned by the shareholders and at the time there was substantial equity that was in the hands of shareholders. We now own that equity which has value to it. We have debt to cover the acquisition of that which we need to pay back and that debt is covered by what used to be the dividend to the owners based on the statutory rate of return that they were entitled to. We’ve replaced that with paying us to pay back the bond for the acquisition and that works out to giving us a substantial equity position in the company as time goes on. We’ve paid off either $16 or $24 million of that cost already so we own outright $16 million in equity in the corporation at this point. The PUC likes to see utilities at about 50% equity and 50% debt and while that model doesn’t actually apply to us because we don’t demand a profit over and above that required payoff, the outstanding operating debt, that’s pretty much where we are headed for with the company’s model of investing about $7 million per year to do expansion and to do replacement of the physical plant. When we get the debt paid off there will be substantial equity that’s owned by the city and the future earnings of the corporation will be based on that $7 million per year that’s being invested to increase the plant and enhance the value of the corporation. As that gets paid down our equity value will stay at about 50% in the company. That said, I have gone over with Mr. Goodhue on a couple occasions where we were and the fact that the rate case last year ended in no changes in the rates and that showed that the financial health of the organization was extremely good. We had anticipated that there might be a 1% or 2% rate hike required and that turned out to not be the case. I would point out that the appropriation filed two sets of paperwork with the PUC for that rate case, one was what the analysis was under city ownership and the other was what the analysis would have been under the original shareholder ownership. That rate increase would have been requested at about a little over 9% and 9.2% is about what the PUC would have granted so just in the time that we’ve owned it we have avoided a 8% rate increase based on city’s financing of the purchase rather than leaving it in the shareholder’s hands. Alderman Siegel I am also in favor of this. A lot of the money that’s going in here is for refinancing debt and the interest rates are at a historic low so now is the time to be borrowing plus some of the funds that are being made available at the state level may very well go away. This is money that’s worth getting, it’s refinancing bonds and its putting money towards infrastructure that needs to be replaced. Alderman McGuinness I also take exception to some of Mr. Teeboom’s comments to suggest that he might be the only one that understands this material. I concur with Alderman McCarthy and sitting on that committee I know that this is essentially a round of refinancing that saves a lot of money and it is appropriate to be reinvesting in some of our infrastructure going forward. The material being provided to us and the people are very thorough. A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Resolution R-15-133 declared duly adopted. Board of Aldermen – 5/12/15 Page 12 R-15-137 Endorsers: Mayor Donnalee Lozeau Alderman June M. Caron Alderman Richard A. Dowd Alderman-at-Large Lori Wilshire Alderwoman Mary Ann Melizzi-Golja RELATIVE TO THE SUPPLEMENTAL APPROPRIATION OF $300,000 OF UNANTICIPATED REVENUE TO THE POLICE DEPARTMENT FOR THE PURPOSE OF PURCHASING A GENERATOR AND $200,000 OF WASTEWATER FUND UNRESTRICTED NET ASSETS TO THE WASTEWATER DEPARTMENT FOR THE PURPOSE OF FUNDING UNANTICIPATED COSTS ASSOCIATED WITH PLANT OPERATIONS Given its second reading; MOTION BY ALDERMAN DOWD TO AMEND R-15-137 IN ITS ENTIRETY BY REPLACING IT WITH THE GOLDEN ROD COPY PLACED ON OUR DESKS THIS EVENING ON THE QUESTION Alderman Dowd The changes in the golden rod copy are basically the dollar amounts in the various places from $300,000 to $440,000 and from $200,000 to $60,000. It was pretty well explained by the President a few minutes ago the difference. A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-15-137 AS AMENDED BY ROLL CALL ON THE QUESTION Alderman Siegel I’d like to address a couple of Mr. Teeboom’s remarks and discussed why I am strongly in favor of this. First of all, I was at the meeting and I don’t think he accurately characterized what happened. There is a reason why we reduced the line item for wastewater to $60,000, and that was because we felt that we could attrition fund the other overtime and additional costs. There were other sources of funding that we could find. We actually in a sense are trying to save money, and I thought that was a fruitful discussion. The Mayor was there and I think her discussion and her points were helpful. I appreciate that. So why did we increase the police amount up from $300,000 to $440,000? We don’t’ have to spend the $440,000. This is anticipating the cost of a new generator. There’s transfer switch infrastructure. Mr. Teeboom is not the only electrical engineer here. Lehigh University, Class of ’83; Electrical Engineering, ’81 in Chemistry. I’ve got a lot of bases covered there, Mr. Teeboom. I appreciate your input, but I do understand what generators cost and some of the issues associated with them. This generator, one could ask, why are we spending the money now? The bottom line is we won’t have the money in a future budget. And, this generator doesn’t just backup the police infrastructure communications. That alone is critical, but it also is designed to keep the HVAC unit going. This isn’t just so our officers are Board of Aldermen – 5/12/15 Page 13 comfortable in their offices. I think they could suck it up if they have to. We have evidence rooms. We have things that need to be kept at proper temperatures so we don’t ruin our opportunities to prosecute people if need be. This generator is critical. That’s the bottom line. The current generator is worse than end-of-life. There are no spare parts. If that generator fails, our police department does not have communications. This to me is a very, very basic public safety issue. It’s a clear need and it is something that we have to solve immediately. We really don’t have an option. The police department may very well spend less than that $140,000. That is anticipating what the max is without a grant. If they spend less that’s money that we get back to us. This isn’t saying here’s a blank check; spend all this money. That was never part of the discussion. It wasn’t implied at all. This is something we need and we need it now. I think we would be irresponsible not to go through this. President Deane This purchase will go through the finance committee. They will have the details of the expenditures, the labor and everything else, as they move forward. A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Resolution R-15-137 declared duly adopted as amended. UNFINISHED BUSINESS – ORDINANCES O-15-047 Endorser: Alderman-at-Large David W. Deane UPDATING THE ORDINANCE ON OTHER SIGNS IN STREET RIGHTS-OF-WAY Given its second reading; MOTION BY ALDERMAN DONCHESS TO AMEND O-15-047 IN ITS ENTIRETY BY REPLACING IT WITH THE GOLDEN ROD COPY PROVIDED WITH THE AGENDA ON THE QUESTION Alderman Donchess As proposed the ordinance dealt with the obsolete use of the term “traffic committee” in Section 320-9. Obviously we don’t have the traffic committee anymore. It also replaced some obsolete language. For example, replacing the words “traffic department” with the words “public works.” It is essentially a housekeeping measure. The amendment which was adopted by the committee simply substituted the words “appropriate aldermanic committee” with the “infrastructure committee.” The point was if we change the committee structure again, as the city did when we went from the traffic committee to the infrastructure committee, by putting in these words, “appropriate aldermanic committee,” we won’t’ have to go back and again make this housekeeping change. Board of Aldermen – 5/12/15 Page 14 A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED MOTION BY ALDERMAN DONCHESS FOR FINAL PASSAGE OF O-15-047 AS AMENDED A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Ordinance O-15-047 declared duly adopted as amended. O-15-048 Endorser: Alderman David Schoneman AMENDING THE LOCATION OF PARKING SPACES ON LOWELL STREET Given its second reading; MOTION BY ALDERMAN SCHONEMAN FOR FINAL PASSAGE OF O-15-048 A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Ordinance O-15-048 declared duly adopted. Board of Aldermen – 5/12/15 Page 15 O-15-051 Endorsers: Alderman Sean M. McGuinness Alderman-at-Large David w. Deane Alderman Richard A. Dowd AUTHORIZING A STOP SIGN TRAVELING WEST ON PINE HILL ROAD AT ITS INTERSECTION WITH INDIAN ROCK ROAD Given its second reading; MOTION BY ALDERMAN MCGUINNESS FOR FINAL PASSAGE OF O-15-051 ON THE QUESTION Alderman McCarthy When we put the three-way stop in at that intersection, I think I was one of the people that fought against making it a four-way stop primarily because I just hate four-way stop signs. I think we have way too many of them and we put them in for all the wrong reasons. In this particular case, having watched the way that intersection works, and the way the traffic works through there since then, frankly the westbound traffic is kind of aggressive and that makes it very difficult for people at the other three stop signs to get out. I’m going to support it. It would be really nice if we all learned to drive in such a way that we didn’t have to do these things and could put in minimal traffic controls instead of maximal. President Deane Quite frankly, I think that area is a candidate for a roundabout, no doubt about it. Everybody hates them but what we looked at during the public meeting that the Mayor had, we had three options. We had the $85 stop sign, the $35,000 land acquisition and another lane or the $300,000 roundabout. I think everybody figured let’s put the stop sign up and see how it works. Alderman Dowd I have relatives in that area and travel through that intersection a lot. I concur that the traffic has become very aggressive going in that direction. It does make it very dangerous for people trying to come out of the side streets so I’m going to concur with the stop sign. Alderman McGuinness I sponsored the legislation and following the ward meeting, and I apologize to the chairman of the Infrastructure Committee, I did not make the meeting the other night – a family emergency, but that also was well attended. A constituent the other day a petition that was circulated a couple of years back with some 60 people signing that. I do not know why that didn’t go anywhere. There’s a lot of concern in the neighborhood. Personally, I live 100 yards from that intersection on Shelburne Ave., and it is a dangerous intersection. People are flying through there, particularly westbound. For the folks coming from Indian Rock Road and for people coming from Hollis, it is a dangerous intersection. I think it’s probably the most appropriate thing to do right now. It’s a solution and certainly a lot cheaper than a roundabout at $300,000 plus. I hope all the Aldermen will support me on this legislation. Board of Aldermen – 5/12/15 Page 16 A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Ordinance O-15-051 declared duly adopted. NEW BUSINESS – RESOLUTIONS Alderman McCarthy We probably don’t really need to do this but I’ll move. MOTION BY ALDERMAN MCCARTHY THAT THE RULES BE SO FAR SUSPENDED AS TO ALLOW FOR THE FIRST READING OF A RESOLUTION RECEIVED AFTER THE AGENDA WAS PREPARED A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED R-15-142 Endorser: Mayor Donnalee Lozeau RELATIVE TO THE ADOPTION OF THE FISCAL YEAR 2016 PROPOSED BUDGET FOR THE CITY OF NASHUA GENERAL, ENTERPRISE, AND SPECIAL REVENUE FUNDS Given its first reading; MOTION BY ALDERMAN MCCARTHY TO ACCEPT THE FIRST READING OF R-15-142, ASSIGN IT TO THE BUDGET REVIEW COMMITTEE, AND THAT A PUBLIC HEARING BE SCHEDULED FOR THURSDAY, JUNE 4, 2015, AT 7:00 PM AT THE NASHUA HIGH SCHOOL SOUTH AUDITORIUM A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED Board of Aldermen – 5/12/15 Page 17 NEW BUSINESS – ORDINANCES – None PERIOD FOR GENERAL PUBLIC COMMENT Mr. Jim Cutter, 86 Palm Street Our no parking sign was used to keep drivers from blocking our driveway for about 123 years before the Broad Street Parkway. Along with it were parking spaces that were a safe place from speeders for children going to Marguerite’s Place Day Care when left off and picked up. Instead of you should not try to fix something not broken, the Broad Street Parkway installed a street design with parking on only one side. Parking on only one side has actually caused crowded parking and the rest of the street now has an increased number of speeders. Our no parking sign was removed thinking O-00-24 had been invoked. It came to me while writing to you on April 16, that our no parking sign, parking spaces, are like driveways or fire hydrants and aren’t part of the Broad Street Parkway. So O-00-24 can’t be revoked. As you see, Mayor Lozeau has erroneously advised to verbally order our no parking sign removed. Now it should be replaced. Thank you. REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN Alderman McCarthy I extend my condolences to the Lavoie family, I worked with Tim for a number of years and was very sorry to hear about that. On a positive note I want to mention that next Tuesday at 6:00 p.m. in the auditorium the Art’s Commission will be hosting a discussion of potential sites for a performing art’s center. There are six sites that are being looked at for potential sites for an art’s center. The commission is creating a website through the Community Development Department and the Assessing Department’s GIS group to provide information on those sites and take commentary. The commentary will be open for the next two months or so. Alderman Dowd I would like to pass my condolences to the families of Officer Trombley and Commissioner Lavoie. Alderman Schoneman I too would like to pass my condolences to the families of Officer Trombley and Commissioner Lavoie. It’s at times like this that we realize the contributions that these two gentlemen made and all the people of the community who contribute. Alderman Chasse My condolences to both of the families. Alderman Caron My condolences to both the Lavoie and Trombley family’s as well. I worked with Commissioner Lavoie when I was at Parks & Recreation and he was very dedicated and involved so it is a loss to the city. On a happier note, the Fire & Fusion that the senior center had last Wednesday was a great success. Alderman McGuinness I would like to express my sadness that these two gentlemen have passed. Life is such a fragile thing and it’s sad, I send my condolences. Board of Aldermen – 5/12/15 Page 18 Alderman Soucy I extend my condolences, especially to the family of Keith Trombley. I never had the opportunity to serve with him but this was a young man just starting out his career with so much potential who was taking away from us decades before is time. We were the same uniform and that makes him my brother and my prayers go out to his family. Alderman Donchess I would like to join my colleagues in extending my condolences to the Trombley and Lavoie families. Alderman Siegel I had the privilege of serving with Tim Lavoie and we are not going to replace someone like Tim. My heart also goes out to the family of Officer Trombley. We should all be good and hug our children. Alderwoman Brown This is indeed sad news and I too extend my condolences to both the Lavoie and Trombley families as well. Alderman Wilshire I too send my condolences to Keith Trombley, so young and so much life ahead of him, it’s very sad and to the family of Commissioner Tim Lavoie, my condolences. On a happier note, I had a great time at the senior center’s Fire & Fusion event and I look forward to it next year. President Deane I to would like to send my condolences out to the families of Officer Trombley and to Tim Lavoie. I knew Tim for a long time and I served a four-year term as a member of the Board of Public Works and that’s where I met Tim. Tim was a special kind of a guy. He knew a lot about a lot of different things. He didn’t say much, he never really had to. He made a lot of good decisions for the city. His funeral mass is tomorrow at 11:00 a.m. at the Parish of the Resurrection and I plan on attending. It’s at 449 Broad Street if you want to attend. Committee announcements: Alderman Chasse On June 2nd and June 29th there are Personnel & Administrative Affairs Committee meetings. Board of Aldermen – 5/12/15 Page 19 ADJOURNMENT MOTION BY ALDERMAN CHASSE THAT THE MAY 12, 2015, MEETING OF THE BOARD OF ALDERMEN BE ADJOURNED A Viva Voce Roll Call was taken, which resulted as follows: Yea: Alderman McCarthy, Alderman Dowd, Alderman Schoneman, 13 Alderman Chasse, Alderman Caron, Alderman McGuinness, Alderman Soucy, Alderman Donchess, Alderman Moriarty, Alderman Siegel, Alderwoman Brown, Alderman Wilshire, Alderman Deane Nay: 0 MOTION CARRIED The meeting was declared adjourned at 8:57 p.m. Attest: Patricia Piecuch, Deputy City Clerk