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Finance Committee - 05/21/2020 Page 5

own building to make sure that our sprinkler systems are up to par. From what Kim Kleiner said with the air
compressor, we actually called it in the fire service a (inaudible) and that keeps the dry system dry. When the
dry system is no longer dry, the reason it is dry is because it is an area that will freeze. When the dry system is
no longer dry then you are paying a lot more money on broken pipes and damages and everything else. So
this is very much money well spent for fire protection and for the integrity of the building. | support this, thank
you.

Vice-Chairman Klee

Thank you, Alderman O’Brien. Ms. Kleiner, | just want to reiterate something that you said or just ask you, by
doing this now versus waiting for the 2 years or 2 % years when everything is going to need to be done again,
we would then disrupt the current occupants at that time, as well as possibly costing us even more money in
the end. And as Alderman O’Brien pointed out, if we don’t take care of this, we have the potential of other
issues going on. Is that correct?

Kim Kleiner, Director of Administrative Services

That is correct. So we would be concerned, just as Alderman O’Brien stated, that the dry system did not
remain dry which could cause several problems. But also because of if there’s any happy side to this, when
we closed City Hall, we also closed Court Street to the tenants, so it’s empty right now. We got the contractors
in there and we asked them to really work on this project while no one was in the building. They’ve been able
to do so; in fact we expect that it will be near completion next week which has really helped both the
contractors and any potential disruption to any programs which wouldn’t be the case most likely in two years.

Vice-Chairman Klee

Thank you very much. Sorry, Alderman O’Brien.

Alderman O’Brien

Yeah and please indulge me. You are in my level of expertise go figure. But anyways this is part of the normal
procedure. Sprinkler heads do have a life expectancy and they need to be changed. | can’t really, now you’ve
got me going back to the NFPA Books, | thought! retired. But they do need to be changed; if you don’t change
them then you can get what’s called in the business a “cold flow’ in other words the sprinkler head lets down
and again it is saving the taxpayer’s money to have a properly maintained, and may | give my usual PR for the
sprinkler system. There’s been about a 96 — there’s never been a loss of life in a properly operated sprinkler
system, a building that has been properly operated. So it goes a long way.

Vice-Chairman Klee

Nice to hear. Are there any other questions? Madam Clerk, could you please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderwoman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman O’Brien 5

Nay: 0
MOTION CARRIED
Alderwoman Lu

| have a quick question.

Finance Committee - 05/21/2020 Page 6

Vice-Chairman Klee

Sure, Alderman Lu?

Alderwoman Lu

Alderman O’Brien, why don’t | see him on my Finance Committee roster?

Alderman O’Brien

I’m on the Finance Committee.

Alderwoman Lu

| never thought you were. Thank you. | don’t know.

Alderman O’Brien

| can go if you want.

Vice-Chairman Klee

Oh no you don’t.

Alderwoman Lu

| just wondered.

Alderman O’Brien

Alderman Lu it is a late night.

Vice-Chairman Klee

Madam Clerk if you could continue? Thank you.

From: Dan Kooken, Purchasing Manager

Re: Contract for Two Year External Audit Contract with Melanson Heath (Value: $122,500) Department:
126 Financial Services; Funds: Professional and Technical Services $89,900; Department: 168 Solid
Waste; Funds: Professional and Technical Services $13,000; Department 169 Wastewater; Funds:
Professional and Technical Services $19,600

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND AUTHORIZE THE

TWO-YEAR EXTERNAL AUDIT CONTRACT WITH MELANSON HEATH IN THE AMOUNT OF $122,500.

FUNDS ARE AVAILABLE IN DEPARTMENT 126 FINANCIAL SERVICES; FUNDS: PROFESSIONAL AND

TECHNICAL SERVICES $89,900; DEPARTMENT: 168 SOLID WASTE; FUNDS: PROFESSIONAL AND

TECHNICAL SERVICES $13,000; DEPARTMENT 169 WASTEWATER; FUNDS: PROFESSIONAL AND

TECHNICAL SERVICES $19,600 BY ROLL CALL

ON THE QUESTION

Vice-Chairman Klee

Director Kleiner, would you speak to this or would it be Mr. Griffin or Mr. Kooken.

Finance Committee - 05/21/2020 Page 7

John Griffin, CFO

This would, Madam Chairman, this would be Mr. Griffin, CFO for the City.
Vice-Chairman Klee
Thank you, please go ahead Mr. Griffin.

John Griffin, CFO

By way of background | provided a Memo to Finance Chair Mayor James Donchess. Hopefully, that was
communicated to you folks as well. My recommendation is to keep the incumbent, Melanson Heath which has
an office locally in Nashua. They do a great job. They know our systems, Lawson, Munis being admins.
They’ve been auditing us for several years. What they do is, from time to time, they change principal, with the
principal on the engagement hours as they employed (inaudible). The audit culminates in the comprehensive
annual financial report, which you may recall when we reviewed it last year. We will set up a meeting going
forward. This year, it has been difficult with the remote meetings and so forth so they will need to get in to talk
to us on that. And on the Finance Committee Meeting, the $122,500.00 is the amount for this year and as you
mentioned in the reading of the request, not only do they do the General Fund Audit, but they also audit the
Solid Waste and Wastewater. So that’s a good deal for us.

On their end, they help us with the financial statements included in the CAFR, Comprehensive Annual
Financial Report. So we think it is a good amount, reasonable amount for the City. It is roughly 2 %2% over last
year. And the following year is around 2%, $125,000.00, it is in the Memo. So with your votes tonight you will
enable us to retain Melanson Heath and start working on the audit for this Fiscal Year, Fiscal 2020. If you
have any questions, Il’d be happy to answer them. Thank you.

Vice-Chairman Klee

Thank you, Mr. Griffin. Are there any questions?

Alderwoman Lu

| do have a question.

Vice-Chairman Klee

Go ahead Alderwoman Lu.

Alderwoman Lu

Thank you. Did any of the Committee receive the Memo to Mayor Donchess?

Vice-Chairman Klee

It was not attached to the Agenda that | could see, other than the original letter that requested this from Mr.
Kooken. We did not get that letter. Alderwoman Lu, do you have any specific that you feel that you need to
ask?

Alderwoman Lu

Well, | wanted to ask (inaudible) but | also wonder if, | think pursuant to 5883 this type of financial service

would be accompanied with a couple of things from the Purchasing Manager such as a description of the work
to be performed and the hourly rates not to exceed contract price and any exceptions to this solicitation. | think

Finance Committee - 05/21/2020 Page 8

things like that are usually part of the packet. This packet tonight seems very sparse and | don’t have a lot of
sense of, you know, | Know there aren’t bids required for this particular contract. But that is my comment.

Vice-Chairman Klee
And | cannot disagree with you, Alderwoman Lu. Usually our packet is much bigger. | don’t know what
happened, if we have seemed to have lost it. | went in and double-checked on the Agenda also to see if there

was something that was missing.

John Griffin, CFO

Madam Chair, if | may, included in the submittal for tonight’s review was the actual contract. Do you have the
contract?

Vice-Chairman Klee
No we don’t have it.

John Griffin, CFO

So what | could do is send you Committee Members the Memo that | just described to the Mayor and then |
would also send you the contract. The contract is very similar to ones that have been approved in the past and
that has all of the representations. It’s a multi-page document and it would have all the representations of the
services being provided. It culminates in a final rate. | could send that to you and the Committee Members. |
can’t do it tonight. I’ll certainly do it tomorrow morning early. The reason why we actually put this on the
Agenda with respect is so we can start scheduling the pre-audit work which is really important. It keeps down
the expense. The Melanson Heath Team usually try to pre-audit before close (inaudible) other things before
they get into the heavy audit, which usually takes place in August and October. So that’s why we didn’t
postpone this particular one until the next month’s meeting.

Vice-Chairman Klee
Before we go any further | am going to ask the members with that lack of information, so what if we weren't to
act on this today, and they weren’t able to do the audit, what would be the additional cost to this contract. |

think we need to know that before we act in any way.

John Griffin, CFO

It’s more of a time — they are not going to change the cost of the contract. It’s just that the senior accounting
manager, she schedules them and they fit everything in, in a timely fashion. Their fee for service, they have
people allocated, they don’t want to come in if they don’t have a bonafide agreement. So they are waiting for
this to have them work on our audit, the pre-audit side of it within the next few weeks.

Vice-Chairman Klee

And | appreciate that. | am going to take the question from Alderwoman Harriott-Gathright and then go back to
Alderwoman Lu.

Alderman Harriott-Gathright

Ok you spoke of a Memo, was it the Memo 20-105?

Finance Committee - 05/21/2020 Page 9

John Griffin, CFO

My particular Memo, Alderwoman Gathright, was dated to the Mayor, May 12". To Mayor Donchess, from
John Griffin and Rosemarie Evens, May 12 recommendation to extend Melanson Heath and Company
contract. This contract is its 2 years, we will also require next Tuesday Board of Aldermen approval. So |
would definitely go forward post-haste to get you this Memo as well as the actual contract.

Alderman Harriott-Gathright

Alright, thank you.
Vice-Chairman Klee

So just so that | can clarify this to the rest of the members, when we approve or disapprove this, we have
another vote that happens at the Board of Aldermen on Tuesday. Correct me if | am wrong, Mr. Griffin. And if
we do pass this here with a recommendation, then the Board of Aldermen makes the final decision and we
have the Memo and we will make sure that all of the Board of Aldermen get that Memo. | don’t know what
happened, probably because we have been trying to rush things with COVID, something got slipped through
the crack. Am | correct on that?

John Griffin, CFO

Madam Chair, John Griffin, CFO — that would be much appreciated and in a Communication, | had ce’d Ms.
Graham and Mr. Kooken. Mr. Kooken has every intention of providing the Memo to the Full Board of Aldermen
and we can make sure we can attach these two documents. That may work as well. It usually comes in to
your folks as a Communication.

Vice-Chairman Klee

Thank you very much. | think | would like to keep going forward. But Alderwoman Lu, | would like to hear from
you. You are muted.

Alderwoman Lu

| am just wondering; | feel as though there is so much missing in this paperwork and would it be OK if |
abstained from this vote?

Vice-Chairman Klee

Well you can vote “no” if that’s how you feel? | am going to be honest with you. | don’t know if we can do an
“abstain”. | know on the State side, | know we can't abstain if we are there. | don’t believe you can hear, but
you know. Feel free to vote “no” if that’s how you feel.

Alderwoman Lu

Thank you.

Vice-Chairman Klee

And Alderman O’Brien did you have a question?

Alderman O’Brien

No | did not but | do agree with the no abstention.

Finance Committee - 05/21/2020 Page 10
Vice-Chairman Klee

OK thank you very much.

Vice-Chairman Klee

Alderwoman Kelly did you have a comment?

Alderwoman Kelly

| do not.

Vice-Chairman Klee

OK it’s getting to be a late night. If there are no other questions, Madam Clerk could you please take the roll?
A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman O’Brien 4

Nay: Alderwoman Lu 1

MOTION CARRIED

UNFINISHED BUSINESS - None

NEW BUSINESS — RESOLUTIONS —- None

NEW BUSINESS — ORDINANCES - None

RECORD OF EXPENDITURES

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT THAT THE FINANCE COMMITTEE HAS COMPLIED
WITH THE CITY CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES
FOR THE PERIOD FROM MARCH 1, 2020 TO MARCH 12, 2020 AND FOR THE PERIOD FROM

MARCH 13, 2020 TO MARCH 26, 2020 BY ROLL CALL

ON THE QUESTION

Vice-Chairman Klee

The reason we have these March 1°, March 12". March 13": and March 26" was we did not, | believe, have a
meeting during the month of April. So this is carrying this forward. They will also be, Mr. Griffin, there’s two

signed sheets for this particular one. Is that correct? Or just one?

Alderman Harriott-Gathright

It’s 2.
Vice-Chairman Klee

There’s two signature sheets for this one?

Finance Committee - 05/21/2020 Page 11

Alderman Harriott-Gathright

Yes.

Vice-Chairman Klee

Ok thank you. And are there any questions on this?
Alderwoman Lu

Yes, | have a question. Actually before, if | could just go back to the, are we voting on the other three items
that were on that Memo tonight? The $89,000.00 and the $13,000.00 and the $19,000.00.

Vice-Chairman Klee

Our past vote was for every one of the items within that Memo.

Alderwoman Lu

OK. So about this vote, | am just voting “no” because with less than six hour’s notice | didn’t have a chance to
(audible) it didn’t occur to me to do that back in March. So | haven’t looked at them and | can’t

Vice-Chairman Klee

OK. Are there any other questions? | know we haven’t gotten to the roll; | am asking if we have any
comments? If not, Madam Clerk could you please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman O’Brien 4

Nay: Alderwoman Lu 1
MOTION CARRIED
Vice-Chairman Klee

Ok the Motion carries with 4 to 1. Mr. Griffin, | just have a quick question for you. Alderman Lu did not vote for
this so she will not sign that, is that correct.

John Griffin, CFO

That would make sense, yes. If | could make just one final point of clarification if | may? Prior to each Finance
Committee Meeting, one of our staff members e-mails the Record of Expenditure to everybody and that seems
to be working well. So | just wanted to share that. So on a Friday before the meeting, which is generally on
Wednesday, hopefully each one of you have the opportunity to look at the Record of Expenditures. And as the
Chairman and Mayor Donchess has indicated, if you have any questions, feel free to send me an e-mail and
we will get you some responses.

Vice-Chairman Klee

| appreciate that Mr. Griffin and we did get that; she did e-mail that to us.

Finance Committee - 05/21/2020 Page 12
Alderwoman Lu

Could | ask a quick question?

Vice-Chairman Klee

Sure.

Alderwoman Lu

Mr. Griffin, is that new practice, just beginning this week?

John Griffin, CFO

No that would have been, this is Chief Financial Officer Griffin, that would have been done 3 meetings ago.
Alderwoman Lu
Really?

John Griffin, CFO

You should be getting, on a Friday, e-mail with the attachment being the Record of Expenditures and then we
put that on the web site under “Record of Expenditures” in the Financial Services Section.

Alderwoman Lu
| received — go head.
Vice-Chairman Klee

That’s ok, yes and she has been sending us those and the signature page has been attached to them within
the same e-mail | believe. I’m sorry, Alderwoman Lu.

Alderwoman Lu

My mistake. Thank you, Chairwoman Klee. So | think | got it for the first time this week, but regardless, this
week did we get all three of the periods and if so | apologize, because | got the e-mail but | assumed it was the
same thing that | typically pull from the web site. So | didn’t even look at what was e-mailed to me. | figured,
“Oh | can get that from the web site” and, in fact, | had already done that. I’m sorry if it was sent out. | didn’t
realize that.

John Griffin, CFO

No worries, | think we’ve all been dealing with the Zooms and COVID-19. We are all trying to adjust so |
appreciate your indulgence in that. But we want to make sure we get you the information that you need. David
Fredette and | are ready, willing, and able to answer any question you may have. Thank you.

Vice-Chairman Klee

And in all fairness, Alderwoman Lu, we were getting a bunch of e-mails all at the same time and | can see the
confusion. To be honest with you, when | first looked at them, | kept thinking, “Is this the same e-mail that |
was getting” and so on, | thought | had duplication. So we are all doing mistakes and so on, obviously. We are
still learning; we will get this down by the time we don’t have to do it anymore. So that passes 4 to 1. Motion
Carried. Madam Clerk?

Finance Committee - 05/21/2020 Page 13

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT THAT THE FINANCE COMMITTEE HAS COMPLIED
WITH THE CITY CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES
FOR THE PERIOD FROM MAY 1, 2020 TO MAY 14, 2020 BY ROLL CALL

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman O’Brien 5

Nay: 0
MOTION CARRIED

GENERAL DISCUSSION - None

REMARKS BY THE ALDERMEN

Alderwoman Lu

| did have one question. Just in the Melanson Memo, why did we vote for those expenditures under
$50,000.00? | thought they weren’t ‘usually included, | thought...

Alderman Harriott-Gathright

It's $10,000.00 isn’t it?

Vice-Chairman Klee

| believe its $25,000.00 and truthfully, | think it comes when there’s a grouping of them. Perhaps Mr. Griffin
can explain this. But oftentimes when there’s small amounts that add about to larger amounts, just out of

courtesy we get these this type of information. Am | correct, Mr. Griffin?

John Griffin, CFO

Yes that’s true. Just so it wasn’t so unclear it was the very first one that included a $15,000.00 Change Order
and a $13,000.00 so because that’s more than $25,000.00 Director Kleiner brought that in for your approval.

Vice-Chairman Klee

And on the second motion | think which is what | think Alderwoman Lu was referencing, the Melanson Health;
there is a $13,000.00 and a $19,000.00. | think those are the ones she was referencing.

John Griffin, CFO

Oh ok, thank you for that clarification. That contract is $122,500.00. We just split it up for your information. We
charge the General Fund, Financial Services, Solid Waste and Wastewater for their allocated share because
those are the Enterprise Funds. We are just splitting out where it is charged, the contract value is $122,500.00
which is greater than $25,000.00.

Vice-Chairman Klee
Thank you very much, | appreciate that and | appreciate your question also Alderwoman Lu because it helps

the public to understand as well as the rest of everybody here. So the total was $122,500.00 so | appreciate
your question. Thank you so much.

Finance Committee - 05/21/2020 Page 14
Alderwoman Lu
Thank you.

NON-PUBLIC SESSION - None

ADJOURNMENT
MOTION BY ALDERMAN O’BRIEN TO ADJOURN BY ROLL CALL
A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderwoman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman O’Brien 5

Nay: 0
MOTION CARRIED
The Finance Committee meeting was adjourned at 11:12 p.m.

Alderman Linda Harriott-Gathright
Committee Clerk