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LEGISLATIVE YEAR 2021

ORDINANCE: O-21-080

PURPOSE: Updating the Purchasing ordinances
SPONSOR(S): Mayor Jim Donchess

COMMITTEE

ASSIGNMENT: Personnel /Administrative Affairs Committee
FISCAL NOTE: Unable to determine.

ANALYSIS

This legislation updates the Purchasing ordinances as detailed in the legislation.

Approved as to form: Office of Corporation Counsel

Date: "7 N renee Jor

A special meeting of the Board of Aldermen was held Monday, November 22, 2021, at 7:00 p.m. in the aldermanic
chamber as well as via Zoom teleconference.

President Lori Wilshire presided; City Clerk Susan Lovering recorded.
Prayer was offered by Deputy City Clerk Allison Waite; Alderman Jan Schmidt 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.

Deputy City Clerk Waite 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 10 members of the Board of Aldermen present: Alderman Michael B. O’Brien, Sr.,
Alderman Patricia Klee, Alderman Richard A. Dowd, Alderman June M. Caron, Alderwoman Elizabeth Lu, Alderman
Ernest Jette, Alderman Jan Schmidt, Alderman Brandon Michael Laws (Zoom), Alderman Linda Harriott-Gathright,
Alderman Wilshire.

Alderwoman Shoshanna Kelly, Alderman Benjamin Clemons, Alderman Thomas Lopez, Alderman David C. Tencza,
and Alderman Skip Cleaver were recorded absent.

President Wilshire

Alderman Lopez is unable to join us this evening due to a work commitment.

Mayor James W. Donchess was also in attendance.

President Wilshire to turn the meeting over to Chairman of Budget Review Committee Richard A. Dowd.
Chairman Dowd

Yes tonight we’re going to have a public hearing on three Resolutions. They're all associated with basically the same
project. We'll go through each one of them separately but | would ask anybody giving public comment to not repeat
ourselves since it is the same project if at all possible and we'll move forward. The first is a public hearing on R-21-
190 - Relative to the Supplemental Appropriation of $3,650,000 of FY2021 (and this is going to be changed to 2022)
Unanticipated Revenue into the Division of Public Works Office Facility Capital Project. It is FY2022 unanticiapted
revenue and in the Budget Committee meeting we'll make a motion to amend. Right now, I'll hear testimony in favor.

PUBLIC HEARING

RELATIVE TO THE SUPPLEMENTAL APPROPRIATION OF $3,660,000 OF FY2021 UNANTICIPATED REVENUE
INTO THE DIVISION OF PUBLIC WORKS OFFICE FACILITY CAPITAL PROJECT

Alderman Jette

Isn't it customary to have a presentation on the Resolution?

Chairman Dowd

Yourre right. I'll ask Treasurer Fredette and Mr. Griffin to come up and Mr. Cummings.

Chairman Dowd

When you’re ready, would you introduce yourself for the record?

Special Board of Aldermen 11-22-2021 Page 2

Tim Cummings, Economic Development Director

Yes, absolutely. So, Mr. Chair, Tim Cummings, Director of Economic Development. I'm here also with Director
Fauteux who's here this evening relative to looking for full authorization for a DPW administrative office building
capitol building project. | want to thank Treasurer Fredette and CFO Griffin for joining us this evening as well, as we
would like to ask for your favorable approval of R-21-190, R-21-191, and R-21-192. This is legislation that would
allow us to proceed with all the sources of funds necessary to construct a $15.1 million building project.

So essentially, the financing plan outlines a few different sources of funds. We've already got authorized $6 million.
We already have $500,000. We have $3.6 million from the proceeds of the sale of Park Street, which is one of the
pieces of legislation before you this evening. We have $2 million available from unspent Broad Street Parkway funds,
which is again, one of the pieces of legislation before you and then we have a gap of just under $3 million. So we're
asking for new authorization of $3 million to create the entire amount necessary for the building project. So that is
essentially what we're here to try to do this evening. R-21-190 is the transfer of $3.6 million from | believe its
undesignated revenue to the DPW administrative office building capital project account.

R-21-191 is repurposing of the $2 million of the Broad Street Parkway funds that are available to us for the purposes
of the, again, DPW administrative office building.

And then lastly, R-21-192 which is asking for authorization have an additional $3 million to bring us to that $15.1,
again, for the construction of the DPW administrative office building. | believe Treasurer Fredette could probably talk
to us about how we can accommodate this bonding and if | could, I'd ask him to speak a little bit about the next slide
or two.

David Fredette, Treasurer

Can everybody see that? If not, | have handouts that might be easier. Mr. Chairman this is a form that I've given to
you before in the past usually with a letter but | didn't have a lot of time to get this all done. So this is what itis. The
first, page 1, reflects bonds that have been approved but haven't been sold yet plus bonds that might happen in the
near future. The top part as you can see are items that are approved. The bottom part started on line 10 are items
that may be approved in the future. This is what | use to do the next page which is the back page of page two. What
this show you is column B represents — okay - this is the general fund. Bonds only. It does not include sewer and
those type of bonds. These are bonds that affect the tax rate directly. Column B is what our bond payments are on
Fiscal Year 2022 through Fiscal Year 2047. That represents all the bonds that was sold up to this fall.

Column C is strictly increase and decrease on year to year. So as you can see, we still have in 24, 25, 26, decreases
because the high school bonds are being paid off by then and it's also probably related to some funding bonds that
we've done over the years.

Column D is strictly a target budget that | created over the years that | give to our financial advisors saying that we
should try to live within this target anyways at least. We've been under it for quite a while.

And then column E represents if all the bonds on the first page was sold over a period of time, these would be
payments from Fiscal Year 2023 all the way through Fiscal Year 2050. Now the first column - 2022, that number was
what we budgeted but we had a sale this fall, which was very, very good. We sold over $65 million of bonds. The
majority of it was the middle school. The true interest cost was 1.8%. Much lower than what | had used when |
estimated. | think I've told you before | estimate on the high side everywhere. We received almost $7 million of
premium, which was a good number. That is the amount that we don't have to sell because it's cash given to us.
Even though that budget for 22 is 166, | know the actual is lower than that. Beginning in 2023, it's based on the sales
that we had plus the new ones. And as you can see, it goes up and down. Again, this column is very conservative
and close rates. It shows on the bottom here estimated rates 3 to 4%. That's very conservative. It does not include
receiving any premiums at all and we usually do. Like | said, this sale received almost $7 million. It was a big sale,
but we're going to have a couple big ones because the middle school has to be bonded — the rest of it. So, again, this
is something I've done usually once or twice a year and review it with the Budget Committee. | just updated it just
recently.

Chairman Dowd

Are there any questions relative to Treasurer Fredette’s presentation?

Special Board of Aldermen 11-22-2021 Page 3
Alderwoman Lu
Yes, thank you. Treasurer Fredette did you say it's a $65 million - that most recent one was $65 million?

David Fredette, Treasurer

Yes. 45 that was the middle school.
Alderwoman Lu
Okay.

David Fredette, Treasurer

Then 7 % was for paving and we had some other projects. | can't name everyone off, but those were the big ones. It
was Public Works mostly.

Alderwoman Lu

But if we also got $7 million in premium, then does that mean that we got more than $6.5 million? We got 13.5. Is that
what the premium is money coming in?

David Fredette, Treasurer

| don't understand your question. We got about $7 million in premium.

Chairman Dowd

The premiums or money that we don't have to bond. They're giving us that money.
Alderwoman Lu

Right. So $7 million in premium and then $6.5f million in debt?

David Fredette, Treasurer

No. We sold 65 plus million. We received about $7 million in premium.
Alderwoman Lu
Okay. | guess all I'm asking is premium like $7 million coming in?

David Fredette, Treasurer

Yes. We received cash towards the bonds. We have another Resolution to (inaudible) bonds. We had a bond for
$1.5 million for two fire vehicles - $1.5 million. We received cash for that completely, so we didn't have to sell the
bond. We got the cash. There was another one for revaluation of $1.3 million. We received full cash for that. So we
didn't have to sell anything. It's part of a whole competitive bid when it goes out. We had seven bidders or eight
bidders. | think JP Morgan wanted this on. It usually goes to the lower bidder usually. They're always very close in
all their bids. It's not an easy thing to fully understand. It takes quite a while but that’s how it works.

Alderwoman Lu
Thank you.
Chairman Dowd

Any other questions for Treasurer Fredette? Any other questions for any part of Mr. Cummings presentation?

Special Board of Aldermen 11-22-2021 Page 4

Tim Cummings, Economic Development Director

| do have Mr. Chair just a couple more slides.
Chairman Dowd
Couple more slides.

Tim Cummings, Economic Development Director

Just | promise. Just a couple more. | wanted to provide the body with just some background on the design.
Chairman Dowd
Sure go ahead.

Tim Cummings, Economic Development Director

Thank you. So you know, we're looking at a two story building. | pulled a couple slides from the architect’s
presentation to the Joint Board of Infrastructure and Board of Public Works. It's a design team of Hoyle Tanner is the
civil and structural engineers. Ironwood Design is the landscape architect. We have mechanical, electrical, plumbing,
fire protection, engineers with VFW Engineering and AKF Code Consultants. They're our code compliance group.

As you may or may not know, we're looking at the Four Hills Landfill. We're looking to put the building right in and
around here with its own separate driveway. Here is the existing driveway up here. You could come in off of the
existing driveway or the new entry right in through here. We are not looking at the Cadillac of type buildings. This is
just a good, solid, basic building that will last the community for years. It's approximately a 25,000 square feet over
two floors. Here's just some landscaping to kind of show you how the building lays out.

So first, will programming. You got a couple of multi-purpose rooms in the first corner here, waiting/lobby area.
You've got locker rooms and toilets, bathrooms, conference rooms, the mechanicals, kitchen. This is like a break
room of sorts. Up here is the Engineering and Administration offices right up and along here. Again, a library which is
more like a conference room, waiting area. Here’s a view of what it looks like from the west, from the south, and then
finally just a perspective on the east, and then the entry. A very standard type building. It's similar to, you know,
many other comparable Public Works buildings if you're familiar with them in the area. Flat roof and that pretty much
wraps it up.

I'll tell you just a little bit about the timeline. We have been going through design. We are trying to wrap design up
now, which is where we are. We're trying to get the project bid in December and into January. We'd like to start
construction in the spring and we're trying to have it completed so we can have occupancy in the spring of 2023. So it
would be about a yearlong construction project if we can get it going in in the spring of 2022. So again, we costed this
project a couple of times. It shows you that our high costs are just about 105. Soft costs is about 3. Contingency at
1.4 brings us in at that total project cost of $15 million. And that's all | have, Mr. Chairman. Thank you.

Chairman Dowd

Director Cummings in these legislative actions that we're talking about tonight, those have all been through the Board
of Public Works, and the construction committee, and had been approved at that level, correct?

Tim Cummings, Economic Development Director

Yes and the Planning Board.
Chairman Dowd
And the Planning Board. Okay. Any questions from the Aldermen?

Alderman Caron

Yes thank you. Can you just run down who's supposed to be in that building besides the administrative office? Is
there any other group?

Special Board of Aldermen 11-22-2021 Page 5

Tim Cummings, Economic Development Director

Pretty much all the groups will be moved over? | think there's some Street Department personnel that may not move
over right away but my understanding the plan is all the other groups would be would be consolidating but | defer to
Director Fauteux.

Chairman Dowd

Director Fauteux would you like to come up and join us?

Lisa Fauteux, Public Works Director

That’s correct Director Cummings with the exception of Wastewater will stay - remain at the wastewater treatment
plant.

Alderman Caron

Okay thank you.
Chairman Dowd
Including Park & Rec., right? We don’t want to forget Park & Rec. do we Alderman Caron? Okay.

Alderman O’Brien

One thing | want to bring up. Thank you, Mr. Chairman. | at this time just want to, you Know, in part of the discussion
and everything with this as many of you know that this building will be built in adjacent to the Fire Department training
facility, which has all the props needed for the proper training when a firefighter gets into drill school to get on the Fire
Department. But it does not have showers and it does not have classroom facilities. To prove how a couple of
Divisions can work together, | thank Director Fauteux for it did opening up and have discussions with the Fire Chief
that some of the shower facilities can be used and perhaps some of the classrooms can be used on an as need type
of basis. So this will probably stop any requests from the Fire Department perhaps maybe in the future, you know, as
far as any classroom type of facility. So | love it when two different Divisions can get together and work for the
betterment of the whole city at large and this seems to be the case. | thank you Director Fauteux for your cooperation
with that.

Chairman Dowd
Any other questions? All right, I'll go back and I'll open it up to the public for testimony in favor.

TESTIMONY IN FAVOR - None

TESTIMONY IN OPPOSITION

Laurie Ortolano

Hi. Good evening. Laurie Ortolano, 41 Berkeley Street. | know we have three different items here and they're all
related. So | don't want to repeat myself too much but | also know | have a limited amount of time. So I'll be coming
back up.

A couple things regarding the facility. First of all on this one Resolution to use unanticipated revenue from 2022, | do
support using that revenue to pay down the bond on Burke Street that was purchased years ago when it wasn't the
correct building. | think you take out a bond on a facility, you don't end up being able to use the facility, you sell it, and
then you maintain all the debt, and then apply more debt. Fundamentally, | don't agree with that. So that's one
reason.

Secondly, this facility has morphed into something different from where it began. It started off as an office facility and
then it sort of became a facility that housed everyone except Wastewater, which is fine but | do have a concern that
there was never a traffic study done. All the equipment and heavy equipment is going to be in there and | see the city
time and time again skirt these traffic studies and we don't do them. We really didn't do a good one down at Costco.
We have the new buildings going in at the Henry Hanger Company and Corriveau Routhier where the road areas over

Special Board of Aldermen 11-22-2021 Page 6

there were a big concern. We did not look at the traffic impact over there and all of these vehicles - all of the heavy
equipment going in and out in that residential neighborhood, | don't think we really did justice to a traffic study. | think
traffic studies are important and | think it should have been - even if the public didn't come out and complain, | think
we have an obligation to do the work and verify what's going on down there. It's a lot of heavy equipment. | don't
even know how the timing works with making your schedules and your shifts work effectively pushing people out
when they're all consolidated in a parking lot with 170 spaces plus the space for all of the heavy equipment trucks that
will be rolling. So that's all I'm going to say on this part and then I'll talk about the other bonded pieces after. Thank
you.

Chairman Dowd
Anyone else want to speak in opposition?

Laura Colquhoun

Laura Colquhoun, 30 Greenwood Drive. First let me say that this agenda shows that the $3.65 million is from Fiscal
Year 2021 when in fact it is from Fiscal Year 2022. Maybe the Mayor and the Aldermen forgot that 141 Burke Street
sold in July of 2021 which happens to be the start of Fiscal Year 2022.

With that said, the city is now stating that they have extra money of $3.65 million from the sale of the 141 Burke Street
for the construction of the DPW building. Maybe this money should be applied to the outstanding loans that the
Nashua taxpayers are currently paying on this property which is approximately $4.7 million. The city also has $2
million in unexpended bond money from Broad Street Parkway. However, why is the city not applying this money to
the outstanding bonds of approximately $30 million that the taxpayers are still paying on this project?

The City of Nashua now wants to bond an additional $3 million for designing construction of this building. Well if you
add up all these figures, it comes up to $14,650,000 and not the $12,000,025 that the Mayor told the Finance
Committee on November 17, 2021 that would be the total price tag for the DPW building. We do not want this project
to turn into another PAC where the price tag just keeps going up. All Nashua residents are now having a hard time
due to inflation and it does not need the city to keep spending their property taxes when they do not have the money
to spend. Thank you.

Chairman Dowd

Ms. Colquhoun you may not have been on when | mentioned that we had caught the 2021 - 2022 issue and it will be
modified as an amendment to the Resolution at the Budget hearing following this public hearing.

Anyone else in opposition? Seeing none.

TESTIMONY IN FAVOR - None

TESTIMONY IN OPPOSITION

Laurie Ortolano

Laurie Ortolano, 41 Berkeley Street. Quickly if | could have an understanding of the protocol for a hearing. Am |
allowed to ask a question in a hearing? Y

Chairman Dowd
You can ask your question and it can be answered now or somebody can get back to you later with the answer.
Laurie Ortolano

Okay, so my question is since | did address my concerns with the parking and my belief is that we didn't have a
comprehensive parking study done. Was there a comprehensive parking study done? | mean a traffic study?

Chairman Dowd

Director Fauteux do you want to address that?

Special Board of Aldermen 11-22-2021 Page 7

Lisa Fauteux, Public Works Director

Yes, we did do a comprehensive traffic study and it is posted on our website under the Division of Public Works
website.

Chairman Dowd
Thank you. Also | think the heavy trucks we're talking about are already there. There's none that are going to be
stored in this building. There are no additional trucks going to be there because all the offices are going out there.

The trucks are all stored there now. You want to address that Director Fauteux.

Lisa Fauteux, Public Works Director

Certainly. So that's correct. The Street Department trucks will remain at the Street Department. The addition will be
the parking. There will be some vehicles from Park and Rec that will be moved over but the Solid Waste vehicles
already exist in that location.

Chairman Dowd

Thank you. Anyone else want to speak in opposition? Seeing none, I'll now close the public hearing on R-21-190 at
7:29 p.m.

The next Resolution is R-21-191 Changing the Purpose of $2 Million of Unexpended Bond Proceeds from the Broad
Street Parkway Project to the Division of Public Works Office Facility Project. Any additional information that wants to
be presented? No. All right.

R-21-191
CHANGING THE PURPOSE OF TWO MILLION DOLLARS ($2,000,000) OF UNEXPENDED BOND PROCEEDS
FROM THE BROAD STREET PARKWAY PROJECT TO THE DIVISION OF PUBLIC WORKS OFFICE
FACILITY PROJECT

TESTIMONY IN FAVOR - None

TESTIMONY IN OPPOSITION

Laurie Ortolano

Laurie Ortolano, 41 Berkeley Street. | could use some assistance. | have been looking at the boilerplate contract that
was given to the board members and was on the finance page. It's the AIA Contract regarding this project. Section
5.2 guarantee maximum price states that price set forth in the guaranteed maximum price amendment, as it is
amended from time to time. So it calls upon an amendment that's attached to the boilerplate and | haven't been able
to find the amendment. | wrote today to CFO Griffin and asked him if he could help me with that. But that
amendment is where there might be a force majeure clause called out and | want to understand a little more about
what guaranteed maximum price really means in these contracts. Because ordinarily there would be a force majeure
clause in there to allow that ceiling to go up in the event of unforeseen circumstances such as COVID and the
situation that's occurred.

I'm concerned that we put all our eggs in one basket. Harvey is a great company but they're doing the school.
They're doing this office facility and they're doing the art center. Leadership here will tell you they're incurring all the
risk. It's a maximum guaranteed price. So you know what if something goes wrong, they're gonna eat it. If there's a
cost overrun, that's 15% deleted. Well when you look at roughly projects that are $150 million, are they going to eat
$20 - 25 million? | tend to doubt that but | want to understand where this amendment is and it's nowhere to be found.
| think it's something we have to look at. Yeah I'm really concerned by that. Did board members receive the
amendment to the document the boilerplate document so that you could see what the specific contract is regarding
GMP?

Chairman Dowd

| believe the committee's involved receive it. | know Infrastructure and then the construction committee received. I'm
not sure about anyone else.

Special Board of Aldermen 11-22-2021 Page 8

Laurie Ortolano

Well, it's not in the DPW package and it's not in the Finance package from Wednesday night. Not the amendment.
The boilerplate document is there but | really can't find the amendment that would have the specific language. So I'm
not certain what it means that the guaranteed maximum price as it is amended from time to time. That seems to me
to open a door to say that these costs can be adjusted. And here's my concern. When Harvey came and gave a cost
estimate in August to the DPW facility, they talked about how difficult a time it is right now. We all know that and they
were hoping that things would settle out and calm down. I'm almost done, right?

Chairman Dowd

Yes.

Laurie Ortolano

I'll sit down and continue with — go on.

Chairman Dowd

All right. I'll answer the guaranteed maximum price. | have a little familiarity since I've done 12 schools. The
guaranteed maximum price says as long as nothing changes, that's all you'll pay. It could be less because if it costs
them less to do the project, the city gets the money back or doesn't have to spend it. The force majeure means that if
they are unrelated circumstances that cause exceedingly higher prices. With a review of Legal and the vote of the
committee, we can try to help them get whole. Not necessarily have to but we have the ability to.

The other thing is as we go along if we make changes to their contract - if we change the design and it happens a lot
in school projects because they’re so big, it's usually minor things for the most part. Then it has to be approved by
whichever committees are involved before you can change the contract for the added cost.

Also as we go along, we've had this happen several times on the school projects, when we go to do things the items
come in under the cost that was estimated and we do a change to the contract, the city gets that money back. So
that's the changes for the guaranteed maximum price. Everything stays the same. That's what they build it for. Mr.
Griffin did you want to add anything about the contract?

John Griffin, CFO

| actually Mr. Chairman, | don't have anything to add. | think you're a nice job explaining it. | think it's always a work
in progress with these contracts and | think they'll be able to fit in the underneath the proposed amount - the amount
of the guarantee price. That's what | have to offer. Thank you.

Chairman Dowd
There is also contingency built into the guaranteed maximum price and that can cover things as necessary. But if it's
not used, that money comes back to the city or never spent. Are there any other questions related to that? Okay.

Again, testimony in favor? See none.

TESTIMONY IN FAVOR - None

TESTIMONY IN OPPOSITION

Laurie Ortolano

Laurie Ortolano, 41 Berkeley Street. Just to continue where | left off. So do we have force majeure clauses in our
contracts?

Chairman Dowd

All of them.

a. one (1) public access channel for the broadcast of non-profit and non-commercial
programming

b. City’s shared community television production facility, located at 9 Riverside Street,
with production areas, editing facilitics and furnished office. Any management shall
be subject to oversight and the right to control by the City.

c. City’s community television automation broadcast and scheduling systems as
dedicated to the Public Access Television (currently channel 96)

d. City’s shared field production equipment (cameras, audio equipment, cabling, ctc.)

e. All other video equipment, office furniture, computers, office equipment, and telephones
found in these facilities and identified on Appendix “XXX” (“Inventory”).

Contractor agrees to fully, faithfully and timely perform all of the activities and services set
forth in the work plan (“Scope of Work”) and budget attached to this contract and fully
incorporated herein as Exhibit “XXX”. Before the renewal date of the agreement, Contractor
shall prepare and submit for review by the City a Work Plan containing operational goals,
objectives, benchmarks and a narrative description of actual operations planned for the
upcoming year. The foregoing shall address public access facility operations including but
not limited to training, programming, production of special events programming by Contractor
staff, equipment testing and maintenance activity and other customary access facility
operations. The City may give guidance and make reasonable suggestions regarding goals
and objectives contained in the Work Plan, and Contractor shall reasonably consider and
address possible incorporation of such City suggestions, but such action shall not constitute
authority or control over Contractor or Contractor’s decisions regarding management,
opcration and content of the public access television channel.

Contractor shall pay for pro-rated public utility and maintenance services to the facility,
including, but not limited to water, telephone, electric, heating, and janitorial/custodial. The
City shall provide maintenance (e.z. plumbing repairs, structural repairs, roof repairs, HVAC
repairs, trash pickup, road and landscape maintenance as necessary) of the facility.
Contractor and its employees and agents shall use and maintain the facilities and equipment
in a safe, secure and workmanlike manner.

Subject to the availability of appropriated funds, for which the City’s Contract Manager shall
seck Icgislative approval, City shall provide maintenance and repairs or when necessary
replacement, as and when reasonably requested by Contractor of the property noted in
Appendix XXX., as follows:

a. With respect to the facilities referenced in Section 3.B.1.a, such maintenance and repairs
shall include all necessary plumbing, media distribution, electrical, structural, roof, and
HVAC repairs, and security. For security, City shall provide a functioning security alarm
system sufficient to deter potential and reasonable security risks.

b. With respect to the Inventory referenced in Appendix XXX, and all video or other
equipment, office furniture, computers, office equipment, and telephones acquired after the
execution date of this contract and used by Contractor in the performance of its mission to
operate and manage the public access television resource (together with the Inventory,
referred to hereafter as “Equipment’’), the City shall be responsible for funding