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FINANCE COMMITTEE

APRIL 17, 2019

7:00 pm Aldermanic Chamber

ROLL CALL

PUBLIC COMMENT

PRESENTATION

Melanson Heath & Company - 2018 Annual Audit and Comprehensive Annual Finance Report (CAFR)

COMMUNICATIONS

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John L. Griffin, CFO/Comptroller
Melanson Heath Presentation — April 17, 2019

Dan Kooken, Purchasing Manager
Contract for NPD Window Project (Value: $134,500); Department: 150 Police; Fund: Bond

Dan Kooken, Purchasing Manager
Contract for Independent Consultant Services (Value: $22,000); Department: 183 Economic
Development; Fund: Tax Increment Financing District

Dan Kooken, Purchasing Manager
Contract for Legal Counsel Services for NMTC (Value: $56,500): Department: 183 Economic
Development; Fund: Performing Arts Center

Dan Kooken, Purchasing Manager
Fiscal Agent Agreement with City Arts Nashua (Value: $0); Department: 183 Economic Development
Fund: None

Tim Cummings, Economic Development Director
Notice of Change in Contract for Residential Brokerage Services with Louise Brochu

Tim Cummings, Economic Development Director
Memorandum of Agreement with Spectacle Management

UNFINISHED BUSINESS — None

NEW BUSINESS — RESOLUTIONS

R-19-129

Endorsers: Mayor Jim Donchess

Alderman-at-Large Ben Clemons
Alderwoman Mary Ann Melizzi-Golja
Alderwoman-at-Large Shoshanna Kelly
Alderman June M. Caron

Alderman Tom Lopez

Alderman-at-Large Brandon Michael Laws
Alderman Patricia Klee

AUTHORIZING THE CITY OF NASHUA TO ENTER INTO CONTRACTS WITH NASHUA
COMMUNITY COLLEGE, RIVIER UNIVERSITY, TOWN OF HUDSON, TOWN OF MERRIMACK,
SOUHEGAN VALLEY TRANSPORTATION COLLABORATIVE AND THE PLUS COMPANY FOR
TRANSIT SERVICES

R-19-132
Endorser: Mayor Jim Donchess
AUTHORIZING THE MAYOR TO ENTER INTO A SUCCESSOR “CONCESSION AGREEMENT”
WITH GRANITE DIAMOND, LLC

R-19-133

Endorsers: Mayor Jim Donchess
Alderwoman Mary Ann Melizzi-Golja
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman Tom Lopez
Alderwoman-at-Large Shoshanna Kelly
Alderman-at-Large David C. Tencza
Alderman Jan Schmidt

AUTHORIZING THE MAYOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH

SPECTACLE MANAGEMENT, INC.

NEW BUSINESS ~ ORDINANCES —- None
RECORD OF EXPENDITURES
GENERAL DISCUSSION

PUBLIC COMMENT

REMARKS BY THE ALDERMEN
POSSIBLE NON-PUBLIC SESSION

ADJOURNMENT

) THE CITY OF NASHUA “The Cate City’

Financial Services Division
Office of the Chief Financial Officer

TO: Members of the Board of Aldermen

FROM: be, ohn L. Griffin, CFO/Comptroller

DATE: April 9, 2019

RE: Melanson Heath Presentation — April 17, 2019

The purpose of this communication is to inform you that Mayor Donchess has scheduled a

‘presentation by Melanson Heath on Wednesday Apri! 17, 2019 in the Aldermanic Chambers.
This presentation will be the first agenda item for the Finance Committee that evening.

Mr. Scott McIntire of Melanson Heath, will review the results of the F¥2018 Annual Audit
as well as the attached Governance Letter. It would be most helpful if you could bring your
copy of the FY2018 Comprehensive Annual Financial Report (CAFR) with you as Mr.
McIntire will be frequently referring to the CAFR as part of his remarks.

CC: Mayor Jim Donchess
Kimberly Kleiner, Chief of Staff

229 Main Street + Nashua, New Hampshire 03060 » Phone (603) 589-3173

MELANSON

ACCOUNTANTS * AUDHTORS

102 Perimeter Road
Nashua, NH 03063
(603)882-1111

melansonheath.con

City of Nashua, New Hampshire Additional Offices:

229 Main Street Andover, MA

Nashua, New Hampshire 03061 Greenfield, MA
Manchester, NH
Allsworth, ME

Dear Honorable Mayor and Board of Aldermen:

We have audited the financial statements of the City of Nashua, New Hampshire as of
and for the year ended June 30, 2018 and have issued our report thereon dated
December 26, 2018. Professional standards require that we advise you of the following
matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter, our responsibility, as described by profes-
sional standards, is to form and express an opinion about whether the financial state-
ments that have been prepared by management with your oversight are presented fairly,
in all material respects, in conformity with accounting principles generally accepted in the
United States of America. Our audit of the financial statements does not relieve you or
management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our
audit to obtain reasonable, rather than absolute, assurance about whether the financial
statements are free of material misstatement. An audit of financial statements includes
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for
the purpose of determining our audit procedures and not to provide any assurance
concerning such internal control.

We are also responsible for communicating significant matters related to the audit that
are, in our professional judgment, relevant to your responsibilities in overseeing the finan-
cial reporting process. However, we are not required to design procedures for the purpose
of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously com-
municated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team and others in our Firm have complied with all relevant ethical
requirements regarding independence. Safeguards that have been applied to eliminate
threats to independence or reduce them to an acceptable level include annual certification
by all Firm staff of independence, or when circumstances change during the year.

Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A
summary of the significant accounting policies adopted by the City is included in the notes
to the financial statements. There have been no initial selection of accounting policies
and no changes in significant accounting policies or their application during the year
ended June 30, 2018. No matters have come to our attention that would require us, under
professional standards, to inform you about (1) the methods used to account for
significant unusual transactions and (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative guidance or
consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by man-
agement and are based on management's current judgments. Those judgments are normally
based on knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events
affecting them may differ markedly from management's current judgments.

The most sensitive accounting estimates affecting the financial statements are:

e Estimated lives and depreciation methods for depreciable assets.

e Collectability of receivables.

e Net OPEB liability.

e Net pension liability.

e Accrued interest.
Management's estimates of the above are based on various criteria. We evaluated the
key factors and assumptions used to develop these estimates and determined that it is

reasonable in relation to the basic financial statements taken as a whole and in relation
to the applicable opinion units.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly
sensitive because of their significance to financial statement users. We noted no partic-
ularly sensitive disclosures affecting the City’s financial statements.

Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the per-
formance of the audit.

Uncorrected and Corrected Misstatements

As an added service to the City, we assisted in compiling the government-wide financial
statements, including consolidating various funds into governmental activities, converting
to the accrual basis of accounting, and recording all long-term assets, long-term liabilities,
and net position classifcations. This consolidation and conversion process was based on
information from the City’s accounting records.

For purposes of this communication, professional standards require us to accumulate all
known and likely misstatements identified during the audit, other than those that we
believe are trivial, and communicate them to the appropriate level of management. Fur-
ther, professional standards require us to also communicate the effect of uncorrected
misstatements related to prior periods on the relevant classes of transactions, account
balances or disclosures, and the financial statements as a whole and each applicable
opinion unit. We have not identified any uncorrected misstatements.

In addition, professional standards require us to communicate to you all material, cor-
rected misstatements that were brought to the attention of management as a result of our
audit procedures. There were no identified material misstatements, either individually or
in the aggregate, to the financial statements taken as a whole or to the applicable opinion
units.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with manage-
ment as a matter, whether or not resolved to our satisfaction, concerning a financial
accounting, reporting, or auditing matter, which could be significant to the City’s financial
statements or the auditors’ report. No such disagreements arose during the course of the
audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in
the letter dated December 26, 2018.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing
and accounting matters. Management informed us that, and to our knowledge, there were
no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings or Issues

In the normal course of our professional association with the City, we generally discuss a
variety of matters, including the application of accounting principles and auditing
standards, operating and regulatory conditions affecting the entity, and operational plans
and strategies that may affect the risks of material misstatement. None of the matters
discussed resulted in a condition to our retention as the City’s auditors.

Other Information in Documents Containing Audited Financial Statements

Pursuant to professional standards, our responsibility as auditors for other information in
documents containing the City’s audited financial statements does not extend beyond the
financial information identified in the audit report, and we are not required to perform any
procedures to corroborate such other information. However, in accordance with such
standards, we have read the information and considered whether such information, or the
manner of its presentation, was materially inconsistent with the presentation in the
financial statements.

Our responsibility also includes communicating to you any information which we believe
is a material misstatement of fact. Nothing came to our attention that caused us to believe
that such information, or its manner of presentation, is materially inconsistent with the
information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the Mayor and Board of

Aldermen and management of the City and is not intended to be and should not be used
by anyone other than these specified parties.

Sincerely,

Helonoonr Hoath

December 26, 2018

) THE CITY OF NASHUA “the Cate City"

Financial Services

Purchasing Department

April 11, 2079
Memo #19-140

TO: MAYOR DONCHESS
FINANCE COMMITTEE

SUBJECT: CONTRACT FOR NPD WINDOW PROJECT (VALUE: $134,500)
DEPARTMENT: 150 POLICE; FUND: BOND

Please see attached communications from Karen A. Smith, Business Manager dated April 3, 2019 for the
information related to this purchase.

Pursuant to § 5-78 Major purchases (greater than $10,000) A. All supplies and contractual services,
except as otherwise provided herein, when the estimated cost thereof shall exceed $10,000 shall be
purchased by formal, written contract from the lowest responsible bidder, after due notice inviting bids.

This contract is contingent upon BOA approval of the bond (April 23° BOA meeting).

The Nashua Police Department and the Purchasing Department recommend the award of this contract
for purchase of replacement windows in the amount of $134,500 from D.L. King & Associates of
Nashua, NH.

EEE

“Pan Kooken
Purchasing Manager

Ce: K Smith A Lavoie

229 Main Street « Nashua, New Hampshire 03061 e Phone (603) 589-3330 e Fax (603) 589-3233 |

NASHUA POLICE

DEPARTMENT Date: 3 April 2019
. ¥ he.

intradepartmental Communication

To: Dan Kooken, Purchasing Manager
From: Karen A. Smith, Business Manager

Subject: Nashua Police Department Windows Project

The Nashua Police Department is seeking professional services to install Kawneer windows as specified
in NPD Bid Specifications |FB1075-010319 attached. The bid is for 47 casement windows that are
approximately 39 years old in need of replacement with new windows to match windows currently installed
within the rest of the building. Bids were received from the below listed vendors.

VENDOR NAME ADDRESS AMOUNT
D.L. King & Associates 27 Tanglewood Dr $134,500
Nashua, NH
Timberline Glass & Mirror 108 Main St $112,012
Plaistow, NH incomplete bid package
received.

The Nashua Police Department recommends the order to D.L. King & Associates of Nashua, NH in the
amount of $134,500 contingent upon final approval of R-19-127 by the Board of Aldermen and Mayoral
approval to issue and sell bonds for funding for Police Department building improvements.

Sincerely,

Karen A. Smith
Business Manager

CONTRACT FOR PROFESSIONAL SERVICES

A CONTRACT BETWEEN

THE CITY OF NASHUA
229 MAIN STREET, CITY HALL, NASHUA, NH 03060

AND

H.L. Turner Group, Inc.

NAME AND TITLE OF PROFESSIONAL ENGINEER

27 LOCKE ROAD
CONCORD, NH 03301

ADDRESS OF PROFESSIONAL ENGINEER

WHEREAS, the City of Nashua, a political subdivision of the State of New Hampshire, from time
to time requires the services of a Professional Engineer ; and

WHEREAS, it is deemed that the services of a Professional Engineer herein specified are both
necessary and desirable and in the best interests of the City of Nashua; and

WHEREAS, Professional Engineer represents they are duly qualified, equipped, staffed, ready,
willing and able to perform and render the services hereinafter described;

Now, THEREFORE, in consideration of the agreements herein made, the parties mutually agree as
follows:

1. DOCUMENTS INCORPORATED. The following exhibits are by this reference incorporated herein and are
made part of this contract:

Exhibit A - General Conditions for Contracts
Exhibit B - The H.L. Turner Group, Inc. Dated May 11" Proposal
w/ a Preamble outlining a phased approach
Project Understanding / Scope of Work / Budget / Schedule and Basis for Fees

The Contract represents the entire and integrated agreement between the parties and supersedes prior
negotiations, proposals, representations or agreements, either written or oral. Any other documents which
are not listed in this Article are not part of the Contract.

In the event of a conflict between the terms of the Proposal and the terms of this Agreement, a written
change order and/or fully executed City of Nashua Purchase Order, the terms of this Agreement, the written
change order or the fully executed City of Nashua Purchase Order shall control over the terms of the

Proposal.

2. WORK TO BE PERFORMED Except as otherwise provided in this contract, Professional Engineer shall
furnish all services, equipment, and materials and shall perform all operations necessary and required to

AG Llof3