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Board of Aldermen 10-26-2021 Page 6

Alderman Linda Harriott-Gathright
Alderman Skip Cleaver
Alderman-at-Large Lori Wilshire
APPROVING THE COST ITEMS OF A SIDEBAR (MEMORANDUM OF AGREEMENT) BETWEEN THE CITY OF
NASHUA BOARD OF FIRE COMMISSIONERS AND THE NASHUA FIREFIGHTERS ASSOCIATION I.A.F.F. LOCAL
789 REGARDING MILITARY DUTY PAY
Given its first reading; Assigned to the BUDGET REVIEW COMMITTEE by President Wilshire

R-21-181
Endorsers: Alderman-at-Large Lori Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman June M. Caron
Alderman Linda Harriott-Gathright
Alderman Thomas Lopez
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK EAST UTILITY, INC. TO ENTER INTO A LOAN
WITH COBANK, ACB
Given its first reading; Assigned to the PENNICHUCK WATER SPECIAL COMMITTEE by President Wilshire

NEW BUSINESS —- ORDINANCES

O-21-072

Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.

Alderman Patricia Klee

Alderman Richard A. Dowd

Alderman June M. Caron

Alderman Thomas Lopez

Alderman Skip Cleaver

Alderman-at-Large David C. Tencza

Alderwoman Elizabeth Lu

Alderman Linda Harriott-Gathright

Alderman-at-Large Lori Wilshire
AUTHORIZING FREE HOLIDAY PARKING AT METERS IN ZONE III WHICH INCLUDES THE ELM STREET AND
HIGH STREET PARKING GARAGES FROM DECEMBER 6, 2021 THROUGH JANUARY 1, 2022

Given its first reading; Assigned to the COMMITTEE ON INFRASTRUCTURE by President Wilshire

PERIOD FOR GENERAL PUBLIC COMMENT
Laurie Ortolano

Laurie Ortolano, 41 Berkeley Street. | want to thank the Board of Aldermen members who brought forth the Letter to the
Editor or the OP ad that was published in The Telegraph and Union Leader for the no vote for the Charter change for the
Police Commission. | think that was appreciated by many of us and it's helpful in providing further education to the
community.

Secondly, I'd like to address I'd like the Board of Aldermen to maybe take an interest in looking at employee turnover in the
city. | find found out that there is no tracking of turnover for employees in any of the departments and | think it's important to
know the health of your workforce and why they're going. We did have a letter read into the record a few meetings ago that
attributed turnover in some areas to a group of citizens being too, you know, harsh or direct and trying to understand what
was going on. | don't think that can really be validated and | think your process for exit interviewing needs to be reviewed
because | don't think the department head who the employees work for should be conducting the exit interview. | think it
should be done somewhere else. | can tell you, if you recall, when the Police Department investigated the Assessing office
and they interviewed staff. If you look at those interviews, there were three or four staff members that said and expressed in
those interviews that they didn't agree with the removal of a Chief and they felt that a Chief had to be brought back. But that
had not been raised at that point by the administration because | don't think they felt comfortable telling the boss who made
the decision to remove them to bring that individual back. So I'm not certain what free dialog you get and if people are
leaving or moving on to jobs that are staying in the field within their field, they may not freely talk about why they exited from
a city job. So | think it's important for us to understand that and to gather that information from all departments in the city and

Board of Aldermen 10-26-2021 Page 7

assess the health of our city government in our departments. | would encourage you to start asking for those types of
reports and tracking what's happening within the city. Thank you.

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Alderman Jette

| just wanted to let the people out there know that we are aware of these audio problems that we're having. | Know the
staff is working hard and trying to figure out what the problem is. | encourage them to do whatever it takes to solve this
problem. My wife messaged me saying that she could not hear the speech that | gave.

Alderman Lopez

Do it again.

President Wilshire

You meant she was lucky.

Alderman Jette

I'll give her that speech tonight when | get home. | hope we can solve this problem.
Alderwoman Lu

Thank you. I'd like to just address the vote next week. Next Tuesday, voters will decide whether our city would be
improved by changing who appoints the Police Commissioners. These Police Commissioners approve the procedures
that ensure that eligibility for being hired, promoted, and promoted is determined by merit and not by influence or loyalty.
130 years ago, the city voters removed the power of appointment from the city elected officials and they placed it with the
Governor. Reporters for the Nashua Standard at that time, which was a newspaper with a wide circulation for nearly 100
years, quoted residents who believe that the then current system in which elected officials appointed the Police
Commissioners had resulted in corruption and political favoritism in the police department.

Since that decision to allow the Governor to appoint city residents to the Police Commission, our Police Department has
developed into one of the most highly respected agencies in the country. Our high CALEA certification signifies the
strength of the department's policies and procedures in identifying quality candidates in officer development, and
retention, and promotion based on merit. Also since that time, our Police Department has been responsive and efficient in
identifying and thoroughly investigating crimes even when permitted by elected officials. This is in part because our
current system allows city elected officials no leverage to influence investigation or the hiring and promotions within the
department.

We've heard time to join the 20th century, and everyone else is doing it, and there is no corruption here. None of these
statements demonstrate that a vote to change the manner that Nashua residents are appointed to our Police Commission
would benefit our City. In fact, it's nearly impossible to prove what would happen here if things were different. If police
departments are successfully intimidated by pressure to hire or promote without merit elsewhere in New Hampshire, how
would we know? Anecdotal evidence does suggest that it happens all the time in other communities. In those
communities where elected officials appoint police commissioners, a lack of reported corruption says as much about what
comes to light under this system as it does about any freedom from political influence that that system creates. A change
of this type should not be a gamble. Change is not always good. So it's our difficult responsibility on Tuesday to decide
whether the person elected to the seat of Governor has acted fairly and appointed judiciously giving consideration to the
stated opinions and needs of our city.

Our city leaders can express the need for female representation or minority representation on the board. They did not do
that this year when it was time to consider the seat of the commissioner whose term had expired. Our city leaders did not
do that last year or the year before. Today our Police Commission is composed of three residents of Nashua each who
have at one time written a letter of interest to the Governor, who then interviewed them, and reviewed their qualifications.
These individuals were appointed or reappointed most recently by a Governor who won 60% of the ballots cast in
Nashua. This Governor won a majority in every ward in Nashua and this Governor has not been heavy handed in his
appointments. In a city who’s elected Board of Alderman and Mayor are all Democrats, he reappointed the selections
made by Maggie Hassan, his Democratic predecessor. No other names were put forward from Nashua elected officials.

Board of Aldermen 10-26-2021 Page 8

Proponents of his change say that a change will give Nashua better control of the police budget. In this budget season,
the Police Department proposed a budget 1.7% over the request of Mayor Donchess. City Hall meanwhile submitted a
budget 2.7% below last year's budget and the City Hall departments were praised held up as examples by the Mayor.
Examples of thrift, cooperation, and fiscal responsibility. Mayor Donchess then submitted a bill to give himself the power
to appoint and remove police commissioners. In October, Mayor Donchess announced that of the $10.5 million dollars of
surpluses from budgeted funds from 2021 fiscal year, which ended June 30", 2.4 million would go back to City Hall
essentially bringing funding for City Hall divisions not down by 2.7 at all but up to an increase of 5.3%. When our Mayor
compares our city departments’ budgets praising one and expressing displeasure at another, he divides and intimidates.

When surplus is used as an enticement in this way to create a narrative of a runaway police budget, then political
influence is on display. This is what it looks like. This referendum item is not needed to control budgets and it's not
needed to gain diversity of race and gender on our boards. Please vote no on #2 on Tuesday. Thank you.
Alderman Tencza

Thank you. So speaking of folks who have left the city recently, | just wanted to congratulate Director Justin Kates who
has left Emergency Management. In my time on the Board, Director Kates has really impressed me as someone who is
just thorough, and diligent, and real asset to the city. Like Director Marchant, | think he's choosing to pursue other
opportunities but certainly he will be missed here in the city and there will be big shoes to fill for whomever comes in and
takes over his position. | always felt like Director Marchant, | was just amazed at his budget presentations, how thorough
he was, and how really how much he knew about emergency management. | always felt that the city was in in really good
hands if it was ever emergency that we needed to respond to as well as his dedication to making Nashua a more resilient
city because we know that unfortunately in the future, there are going to be climate events that are gonna affect us. But
you know if we plan and work together as a city, we'll be able to get through them just fine.

Also, | just want to wish everybody a happy and healthy Halloween this Sunday night. Hopefully people can go out and
enjoy their trick or treating. Even last year given that it's a holiday with that we're all masked up anyways, we could go out
and enjoy the outdoors. But even this year, it's important to stay safe and remember that we should still be safe as we're
going around.

And then finally, | think that next Tuesday's an important day. Thank you to Clerk Lovering and her staff and all the
volunteers in advance for all the work that they're going to do over the next week to get us ready for this election. | think
in a lot of ways, you know, this election, every election is about what kind of tone we want to set for the city. What kind of
leaders we want sitting around here and filling all of our other positions within the city. So please, every election is
important. It's a privilege for us that we get to go out and choose our elected officials. So if you're around or if you're not
around next Tuesday, please come out and vote and make your vote heard. Thank you.

Alderman Lopez

| just wanted to comment that last night Nashua Fire managed to put down a fire at Kinsley House of Pizza. This is the
second fire in two days that has displaced residents. So | would just caution residents and urge them check your smoke
detector batteries, make sure that you're keeping clutter away from heaters. Just be careful. As the weather gets colder
and we started to turn heaters on and you know there's more risk. Nashua Fire is quick, and they're fast, and they get the
job done, and they save lives. Even managed to save the cat but still destruction of property. It's dangerous and it puts
our firefighters in danger. So please just take whatever steps you can to mitigate the risk wherever you can.

A week from Thursday is going to be Veterans Day. We are having a Veterans Day Parade. I'm working with a group of
neighbors who are also trying to make sure that we're doing a meal for veterans who are staying over Dalainis House. So
if anybody would like to participate, you can buy a meal for veterans over at Joanne's Kitchen. It's right around the corner
here. $5 will buy them a ham dinner, macaroni and cheese, southwest style corn. So help us make that a great event for
everybody.

Alderman Clemons

Thank you, Madam President. I'll be brief. | just wanted to remind everyone go out and vote on Election Day which is
coming up on Tuesday, November 2. So this coming Tuesday. Normally | keep off my you probably notice | keep off my
camera because what | joke is that well it's not Halloween | don't want to scare people but now that it is, | figured I'd turn it
on real quick, say hello to everybody, and wish everybody Happy Halloween. Here | am. I'm just joking. Happy
Halloween everyone thanks.

Board of Aldermen 10-26-2021 Page 9
Alderman Caron

Yes, thank you. I'd like to echo Alderman Tencza’s remarks concerning voting. It is your right. If you're looking for
changes within any boards, commissions, or in this circle, this is the time for you to be heard. Whatever happens,
happens and we wish everyone good luck next Tuesday. Also please remember that people who are working the wards,
they are there at four and five o'clock in the morning until eight o'clock plus at night. So be kind to them. They're gonna
do the best they can under the circumstances that we have because of the protocols that are in place. So just be patient.
Always be patient. So | appreciate that and also Happy Halloween everyone. Get out there and carve your pumpkins.

Alderman Dowd

Yes, some good news. The middle school project is moving along very well. We have completed the acquisition of the
final piece of property. It's been registered and recorded. So we're good to go. The only thing we're waiting for now is
the final AOT approval from the State of New Hampshire and we will be starting the new middle school.

Fairgrounds has been completed and you will all be getting an invitation to the rededication ceremony which should be, |
believe, the first week of November but you'll get an invitation. That school turned out exceptionally well and they finally
get all of the new furniture. So it's been a good program.

Pennichuck Middle School is well underway. The south edition is moving along very well and is due to be ready in April
and the north addition barring all this rain and weather, we're hoping to pour the cement foundation. So that's going very
well. It will be completed at the end of next summer.

Also in that same area, the Pennichuck Water works their solar farm is underway and they're getting all the land ready
and also the power companies putting up several utility poles on the Pennichuck land. There's quite a bit of work that will
be happening there at the start right near the entrance of the school but that's all Pennichuck Water work’s project. So
thank you.

President Wilshire
Anyone else?
Alderman Klee

Thank you, Madam President. | just have two quick things. One is I'm looking forward to Halloween and praying that it
doesn't rain. It's one of my favorite times of the year. And this year it feels like it'd be a little bit more normal from last
year.

| wanted to echo what Alderman Jetty had said. | got two text messages. One from Alderman Schmidt who tried getting
off and coming back on as well to see if that helped and | think the same was with Alderman Laws. They were having a
hard time with the audio. It just kept kicking in and out. | wish your wife luck with your speech. It was very worth listening
to and my husband said that he'll just talk to your wife to get the highlights so. Thank you.

Alderman O'Brien

Thank you, Madam President. | just want to recognize the Mayor. | know we had amplification microphone issues during
his remarks by the Mayor but sitting next to you with my new hearing aids, you sounded pretty good to me. You muddle
through correctly.

|, too, did hear from one particular citizen that says a way of tracking people who leave the city but just to remind, it might
need to be explored. In this State, its employees at will so that means employees and employers can leave or stay with
not much and | don't know if we really can legally track them. But it needs to be investigated in to take a look unless
there's some other venue.

And then | also would like to recognize as what Alderman Tencza said — Justin Kates who was our Emergency
Preparedness Director. | had the pleasure as being the Deputy Fire Chief and working with him for several years. When |
first heard that he came on board when they told me his name was Justin Kates as Emergency Preparedness, | thought
making it up but he had the most perfect name for the position. But top of his name, he did an extremely fine job and the
citizens and Nashua were greatly served by him and us on the Fire Department. Really appreciated the work he did. So
we wish him best luck in his new endeavors.

Board of Aldermen 10-26-2021 Page 10

Also, too, to our drivers out there - Halloween, be careful. Leaves, wet weather, slippery conditions, please watch out for
the kids.

Also, too, | agree with Alderman Lopez. Usually in the fire service we said around whenever you change the clock
change the batteries in your smoke detectors. It’s very wise advice. So thank you Alderman Lopez.

And finally, please get out there and vote. It is your right. That's what makes the whole political system tick. So please,
exercise your right and vote next Tuesday. Thank you Madam President.

President Wilshire

Thank you. I, too, want to weigh in on Director Marchant and Director Kates. Director Marchant has been a fabulous
Director of Community Development. She's done a lot for the city. She worked really hard to get this Master Plan done,
and she did, and | thank her for that, and for all the years she spent making it a better city. Justin Kates - the same. | think
he was a valuable employee. I'm sorry to see both of them go but Justin did a really good job for us here in the city and
will be missed.

Committee announcements:

Alderman O’Brien

Thank you. Just to remind everybody. There’s a joint meeting of the Committee of Infrastructure and PEDC. That will
tomorrow evening, Thursday night at 7 pm here in the chamber. If those you wish to wear your Santa hats, feel free to.
That will be because of O-21-072 allowing free holiday parking in Zone 3. It’s our annual gift for that.

President Wilshire

Could you clarify? You said tomorrow, but you said Thursday. So which is it?

Alderman O’Brien

Did | say Thursday? It’s actually Thursday?

Alderman Klee

No, it’s Wednesday.

President Wilshire

Tomorrow night, okay.

Alderman O’Brien

No, that's okay. I'm going to buy a calendar after this.

Alderman Lopez

Maybe someone will give one to you for Christmas.

Alderman O’Brien

| stand corrected. So it is Wednesday night. Thank you so much.

President Wilshire

Thank you.

Alderman Dowd

On Thursday, there will be a very short, | hope, Joint Special School Building Committee so we can pay some invoices.
We'll get an update from the construction manager and the architect and pay the invoices. It shouldn't be that long a

Board of Aldermen 10-26-2021 Page 11

meeting but masks are required for everyone to attend. The Board of Education has said anybody in the school at any
hour of the day must be wearing a mask.

Alderman Caron

Yes thank you. Well, Monday, November 1, is the Personnel meeting at seven o'clock. We do have at least six people
who are coming in for interviews. So it's really important that we have our committee members present because we did
have to cancel last month's Personnel Committee because we didn't have our quorum. So please, | know that Donna has
already received notification from at least three. So if the rest of you would contact her and let her know for sure, that'd be
great because | don't want to be scrambling and scrambling with Donna to find someone to fill in. Thank you.

President Wilshire

Other committee announcements? Committee announcement Alderman Lu?

Alderwoman Lu

No.

President Wilshire

Okay, that's what we're on. Any other committees? No. Okay.

Alderwoman Lu

| just wanted to let you know that | got a text saying Channel 16 had shut - the sound went out about 15 minutes ago.
President Wilshire

Thank you. Okay.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE OCTOBER 26, 2021, MEETING OF THE BOARD OF ALDERMEN BE
ADJOURNED, BY ROLL CALL

A viva voce roll call was taken which resulted as follows:
Yea: Alderman O’Brien, Alderman Klee, Alderman Dowd, Alderman Caron,

Alderman Clemons, Alderman Lopez, Alderman Tencza,

Alderwoman Lu, Alderman Jette, Alderman Cleaver, Alderwoman Harriott-Gathright,

Alderman Wilshire 12
Nay: 0
MOTION CARRIED

The meeting was declared adjourned at 8:24 p.m.

Attest: Allison Waite, Deputy City Clerk

A special meeting of the Board of Aldermen was held Monday, October 25, 2021, at 7:00 p.m. in the aldermanic
chamber as well as via Zoom teleconference.

President Lori Wilshire presided; Deputy City Clerk Allison Waite recorded.

Prayer was offered by Deputy City Clerk Allison Waite; Alderwoman-at-Large Shoshanna Kelly led in the Pledge to
the Flag.

To join by Zoom — please refer to the agenda or the website for the meeting link and telephone number.

Let’s start the meeting by taking a roll call attendance. When each member states their presence, please indicate if
participating via Zoom state why you are not meeting in person and whether there is anyone in the room with you during
this meeting which is required under the Right-To-Know Law.

City Clerk Lovering called the roll and asked them to state the reason he or she could not attend, confirmed that they
could hear the proceedings, and stated who was present with him or her.

The roll call was taken with 12 members of the Board of Aldermen present: Alderman Michael B. O’Brien, Sr.,
Alderman Patricia Klee, Alderwoman Shoshanna Kelly, Alderman Richard A. Dowd, Alderman June M. Caron,
Alderman Benjamin Clemons, Alderman Thomas Lopez (arrived at 7:04 p.m. via Zoom), Alderman David C. Tencza,
Alderwoman Elizabeth Lu, Alderman Ernest Jette, Alderman Brandon Michael Laws (via Zoom), Alderman Linda
Harriott-Gathright, Alderman Wilshire.

Alderman Jan Schmidt and Alderman Skip Cleaver were recorded absent.

Mayor James W. Donchess was also in attendance.

President Wilshire

As is customary, | will turn the public hearing over to Chairman of the Budget Review Committee Alderman Dowd.
Chairman Dowd

Yes, tonight we’re going to have a public hearing on R-21-177 Relative to the Supplemental Appropriation of $250,000
of FY2021 Assigned Fund Balance into Fund #6500 “Property & Casualty Self Insurance Fund”. Mayor | believe you
wanted to open?

Mayor Donchess

Yes, thank you Mr. Chair. So as you see from the Resolution, we are proposing to transfer $250,000 from what is
called the “Assigned Fund Balance”. Now these are funds held in reserve for — and these are designated for
unanticipated liabilities. That’s what we have here. You're going to hear — and I’m going to introduce Ms. Kleiner and
Ms. Deshaies in a moment - but what we have are a group of serious worker’s comp. cases — serious injuries. No
question apparently that they are work related and as a result of this group of very significant cases, the risk pool
which was estimated at about $4 million this year according to the actuaries is a little short in order to pay all of these
claims. So that’s the proposal. | will introduce now Ms. Kleiner and Ms. Deshaies to give you more of the details.

Chairman Dowd

They do have a presentation which they will introduce in a moment and give an explanation of the actions that are
being taken and then if members of the Board of Aldermen have questions.

Kim Kleiner, Administrative Services Director

We just have three brief slides. The main purpose of these slides is to ensure you that our property and casualty fund
is in good shape. It is stable. We are not seeing claims that are out of the ordinary. We're just in a situation this year
where the expenses last year brought the fund low. Now with the incurred but not received claims which get booked
to the previous fiscal year, it has brought the funding to a deficit.

Special Board of Aldermen 10-25-2021 Page 2
Chairman Dowd
We'll bring the presentation up. Alderman Lopez has joined us on Zoom.

Kim Kleiner, Administrative Services Director

So the first slide if you can see it. | realize it’s small. It has a lot of data. We do have copies of the presentation if
you'd like it. Ms. Deshaies has copies. This is to show you that relatively year to year our total revenue, total
expenses, and ending balance has stayed fairly steady from year to year. It’s quite consistent. What you'll see at the
top there is in 2021 with the booking of this $541,000 incurred but not received, for the first time brought the fund into
a deficit of about $211,000.

Moving into Fiscal 2022, our current year, what we realized we knew we were going to have some increase in our
property and liability policies. So this year instead of funding the fund $3.8 million, what you saw was a transfer at
budget time if you might remember of $4.2 million. So looking at the fund if we were to look at the fund today, that
$211,000 deficit has already decreased of a deficit to $49,000. What we do expect each year, we fund the account
twice. So half of the annual appropriation goes in July when the budget is passed and half of it goes in in January.
So we will have another $2.1 million that’s transferred as part of the budget process in January.

Looking at the expenses of Fiscal 2022 so far to date, we’re trending favorably. Most of the policies have been paid
and our claims are trending fine. So we’re not concerned with this but what we do need to do is bring the fund into a
health balance and that’s what the $250,000 will do. It will bring that $49,000 deficit that we see today to a roughly
$200,000.

So here we're just showing you from year to year, we have funded the account approximately the same amount. We
had a slight increase over in Fiscal 2020 but other than that, we’ve always averaged right around $3.8 million until this
year is when the Board of Aldermen approved the $4.2 million. To the right, you’re going to see the change in the
incurred but not received. That is a report that is prepared by our actuaries based on the trends and Ms. Deshaies is
going to tell you about everything that goes into that report. Her office works very hard to give the actuaries all the
data that they need to estimate that trend.

This last slide is just showing you these are our claims. So our automobile, our property, our general liability, and our
workman’s comp. As you can see, they have remained pretty consistent. We have our ups and downs, different
years but nothing out of the ordinary. Again this year we so far for Fiscal 2022, of course we’re not that far through it
so I'll do a little knock, but so far so good we are trending favorably. But what | will ask is Ms. Deshaies is going to
give you just a little bit about what goes into the incurred but not received report which is what we book for trending
claims. We just want to be careful to say that not necessarily will these claims hit but it is the actuaries doing their due
diligence so that we remain and keep our reserves in a health balance.

Jennifer Deshaies, Risk Manager

So as the Mayor said, the IBNR increase is basically being driven by three worker’s comp. claims. All of them back
injuries. All of them have had surgery these claimants and they've been out of work. Important to point out that the
increase that you’re seeing is for the life of the claim. That life of the claim changes. They’re living documents. So
cases are reserved at the worst case scenarios. They’re estimates. They change based on claim activity but that’s
not the only thing that goes into the IBNR. If you have changes in State and federal laws, costs of health care, claim
administration costs, if your number of claims fluctuates from one year to another, your State fees, collections,
subrogations, liens, insurance contribution versus self-insurance, the life span of a claim, your interest rate. So
there’s so much country-wide trending, inflation, all that goes into that number. It’s not just the claims and, again, that
number can change as the life of the claim. Claims are open for the life of a person. So it’s not budgetary year. That
increase is for the life of any claims that you see.

Chairman Dowd
Are you all set Ms. Deshaies?

Jennifer Deshaies, Risk Manager

Yes I’m all set. I’m sorry.

Special Board of Aldermen 10-25-2021 Page 3

Chairman Dowd

We have a question from Alderman Lopez

Alderman Lopez

Yeah and just for the record, |am alone. I’m in my office on Exit 1 and | just couldn’t get transportation back to the
Special Board without holding everybody up.

So my question is Ms. Kleiner had mentioned that we typically put funding into this budget bi-annually but this
particular year we went into a deficit. It sounds like over two-thirds of it you’ve already kind of pulled out of and we’re
looking for ways to do this in a more healthy manner. | want to understand the predictability of this situation. Is this
like a fall out from 2020 and we don’t want to account for it in our regular planning? Like there’s an ongoing global
disaster which the likelihood we’ve never seen. So you wouldn’t plan business as usual during that or is this
something maybe attributable to growth or changes in deficits? Is this something we should adjust for like maybe try
to review it every quarter instead of bi-annually?

Kim Kleiner, Administrative Services Director

Yes. So I'll just go back. The Board of Aldermen approves the amount that is transferred from the General Fund into
the Property & Casualty Fund. So for Fiscal 2022, you approved $4.2 million. That gets transferred. It’s been
practiced that that is transferred in two installments: one in July and one in January. That is just the practice of the
City. | would assume cash flow and other reasons but we do not think that this is a serious problem. We’re certainly
not raising any red flags. You see these types of trends go up and down. So back in 2018 for instance, you had one
year that you had an IBNR of $600,000 rise and then the next year it went down over $600,000. This is quite
common. This goes with the fluctuation of claims.

Our claims have remained fairly stable. So we don’t see this as a reason to adjust how we are being fiscally
responsible or how we are doing things. The Risk Department, our adjusters do an amazing job. They handle these
claims and they’re very well versed in what they need to do, how they need to book these reserves, as well as what to
expect a case to take the life of.

Chairman Dowd

Any other questions from the Aldermen?

Alderman Jette

Thank you Mr. Chairman. So | know that worker’s compensation is a system. It’s a no-fault system. So the fact that
we have these unusually large claims that the Mayor referred to doesn’t mean that the city violated some duty towards
the worker and it doesn’t mean that the worker did something wrong. | don’t know any of the details but these worker
comp. claims are just accidents that happen. If they are work related that they happen on the job or related to the job,
then the system provides for compensation to the worker. | want to hear from you some reassurance that this does
not reflect on any lack of worker safety on the part of the city, and that there’s nothing that the city is neglecting as far
as our workers are concerned, and that these claims just happen and doesn’t necessarily mean they’re going to
happen or going to happen in the future. Can you reassure me about that?

Kim Kleiner, Administrative Services Director

I'd like to ask Ms. Deshaies to speak to that.

Jennifer Deshaies, Risk Manager

These three cases are not the fault of, as you said, the employee or the city. They’re not safety concerns either. Two
of them were from firemen fighting fires and the third one was a motor vehicle accident in which the third party was at
fault.

Alderman Jette

Okay thank you.

Special Board of Aldermen 10-25-2021 Page 4

Chairman Dowd

Anyone else?

Alderwoman Lu

| just want to ask for some clarification. There’s been a lot of talk about when we have a public hearing whether it’s
time for us to ask questions or whether we’re meant to allow the public to ask questions or comment. | have
questions but having received this just now, | would be more ready to ask questions after I’ve looked at it.

Chairman Dowd

You can stay for the Budget hearing and you could also ask questions tomorrow night at the Board of Aldermen
meeting.

Alderwoman Lu

Exactly. Yeah, absolutely. | just wanted to kind of give a heads up that | may have a problem asking questions
tonight.

Chairman Dowd

| Know there’s been concern in the past about Aldermen asking questions but | feel that since the Board of Aldermen
are going to be voting on it, this is the item to ask the questions especially to clarify exactly what we’re addressing. So
it's not that we’re not going to open it up to the general public, although there’s nobody on line and nobody in the
chamber.

Alderwoman Lu

Just to follow up. | wonder if that demonstrates the difficulty of having a public hearing before a committee hearing.
The public hasn't had the change to look at the detail that we just got tonight. So thank you.

Chairman Dowd
It was the final decision made by the Board of Aldermen tomorrow night. Any other questions?
Alderman Klee

Thank you Mr. Chairman. | think kind of talking about what Alderman Lopez had mentioned about the predictability of
this. He mentioned that it’s three individuals. He mentioned that they all had surgery of some sort. | don’t want to ask
for anything specific but are we prepared if all the surgeries are done in one single year do we expect that year to be a
high cost year and perhaps the next year might not be? So | trust in your judgement and | agree with Director Kleiner
has said about that you’re all doing a wonderful job. | have no reason to deny that. So is this part of the predictability
that you’re kind of doing as far as your actuaries are concerned?

Jennifer Deshaies, Risk Manager

So the Claims Adjusters reserve these cases on the worst case scenario. So we base it off the medicals we receive
and our experience with handling these types of cases. So yes these cases have all been reserved if | may for worst
case. That doesn’t mean you're not going to see the reserve change due to let’s just say somebody returns to work
sooner than we think or they go another six weeks of PT. The surgeries have already have happened for every one of
these individuals.

Alderman Klee
So | guess | was little confused then and | do fairly understand workman’s comp. cases but you referred to these as

the claims are open for the life of a person. So that would mean that in five years down the road if they had additional
issues to that, it would still be part of that original workman’s comp. Is that correct?