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Finance Committee - 6/20/2018 Page 2

but if somebody had a good excuse and say “I lost it” are we missing a potential opportunity? So my question
directly is what is our procedure when this occurs in the bidding process?

Ms. Marchant

| would like to hand that over to the purchasing manager.

Dan Kooken, Purchasing Manager

I’d like to answer that. It is unfortunate. We could re-bid if we felt it was necessary, but they lost the bid and
the other person came in at a higher price, so they are the low bidder, they are the current supplier and costs
have went up on diesel particularly since our volume is going down.

Alderman O’Brien

| am satisfied, | just wonder if there was a potentially difference in the pricing. It appears not, it is what it is with
biofuel | am sure.

Ms. Marchant

And our volume is going down very significantly because our buses are now CNG and they were biodiesel so
there’s a massive drop here in volume which would also equal a little bit higher price per gallon.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Heritage Rail Trail Connection to Mine Falls Park (Value $502,623)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
GEORGE CAIRNS & SONS, INC., IN THE AMOUNT OF $502,623. SOURCE OF FUNDING IS
DEPARTMENT 181, COMMUNITY DEVELOPMENT; DOT GRANT

ON THE QUESTION

Mayor Donchess

Ms. Marchant is here on this, maybe you could give an explanation of this item?
Ms. Marchant

Sure, this is the Heritage Rail Trail project originally was a half million dollar grant in 2014 to connect the
Heritage Rail Trail down Everett Street with an ADA compliant ramp, a separated way down Everett Street and
a crosswalk at Ledge and a new pedestrian bridge over the canal into Mine Falls Park. This project, due to the
length of time and permitting went out to bid this Spring twice. The bids came back higher than anticipated.

As such, we were able to talk to DOT and then Federal Highway and then ask for additional funds because
several other TAP grants that went out in the region also came back significantly higher than anticipated as
construction costs have risen significantly.

So we were able to secure additional funding from Federal Highway and DOT to help offset these additional
costs and the rest is here before you.

Alderwoman Kelly

Thank you Mr. Mayor. So to clarify, we had half a million and now we are adding an additional half a million
through this grant?

Finance Committee - 6/20/2018 Page 3
Ms. Marchant

We are adding an additional, in grant funding, about $70,000.00 and the City is putting in about $80,000.00 so
it will be in total about $650,000.00 to complete the project.

Alderwoman Kelly

Thank you.

Mayor Donchess

And this is a contract for $502,000.00.
Ms. Marchant

Correct, for final construction.
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Purchase of Air Bags for all Ladders (Value: $21,285)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE PURCHASE
FROM HARRISON SHRADER ENTERPRISES IN THE AMOUNT OF $21,285. FUNDS ARE AVAILABLE IN
DEPARTMENT 152, FIRE; GENERAL FUND

ON THE QUESTION

Mayor Donchess
And NFR is here if anybody does have questions on this. Are there any questions or comments?
Alderman Laws

| am just curious, what are the air bags?

Mayor Donchess

Come on up Deputy.
Kevin Kerrigan, Deputy Fire Chief

Kevin Kerrigan, Nashua Fire. The airbags are just another tool that we have, we care about our ladders
because the ladders are strategically through the City and they respond to all car accidents. That is most of
the time where we use our air bags to lift heavy objects. So it can be an industrial accident or usually it is a car
rollover or something like that. They are at their end of life, they have about a 15 year life span and ours are
near that or at that. They are not something you can kind of test so we really should just replace them
because we don’t want them to fail if we are using and we know that they are at the end of their life.

Alderman O’Brien

If | may say so | had a situation where a lady came out of her apartment and went on to the concrete precast
stoop and got her foot wedged in-between the building and the stoop. The way to try to get that precast away
from the building so as to get her leg removed, we used the air bags and it worked famously and there was no
additional injury. They are multi-use.

NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

For the Year Ended June 30, 2021

Estimated useful lives are as follows:

Years
Land improvements 5-25
Buildings and improvements 10-39
Equipment 3-30

Compensated Absences - Employees earn vacation and sick leave as they provide services. Employees earn
1.25 sick days per month. Employees hired before July 1, 2014 may accumulate an unlimited number of
sick days and upon retirement will be paid out 20% of unused sick time at current rates of pay. Employees
hired after July 1, 2014 may accumulate up to 24 sick days and upon retirement will be paid out 50% of
unused stick time at the current rate. Vacation amounts accrue according to length of employment.
Employees may carry forward vacation days into the next year up to two times their annual accrual rate.

Other Postemployment Benefits - For purposes of measuring the net OPEB liability, deferred outflows of
resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the
fiduciary net position of the New Hampshire Retirement System (NHRS) OPEB Plan and additions
to/deductions from NHRS's fiduciary net position have been determined on the same basis as they are
reported by NHRS. For this purpose, NHRS recognizes benefit payments when due and payable in
accordance with the benefit terms. Investments are reported at fair value, except for non-registered
commingled funds valued at net asset value (NAV) as a practical expedient to estimate fair value.

Pensions - For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net position
of the New Hampshire Retirement System (NHRS) and additions to/deductions from NHRS's fiduciary net
position have been determined on the same basis as they are reported by NHRS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms.

Net Position - Net position represents the difference between assets, deferred outflows of resources,
liabilities and deferred inflows of resources. The net investment in capital assets consists of capital assets,
net of accumulated depreciation, reduced by any outstanding balances of bonds, notes or other borrowings
used for the acquisition, construction or improvement of those assets. Net position is reported as restricted
when there are limitations imposed on their use either through enabling legislation adopted by the Authority
or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities and
deferred inflows of resources that are not included in the determination of net investment in capital assets
or the restricted components of net position.

The Authority’s policy is to first apply restricted resources when an expense is incurred for purposes for
which both restricted and unrestricted net position is available.

Revenues and Expenses

Operating Revenues and Expenses - Operating revenues for the Authority are those that result from
providing services and producing and delivering goods in connection with its principal ongoing operations.
Operating expenses, which include depreciation on capital assets, are necessary costs incurred to provide

143

Finance Committee - 6/20/2018 Page 4

Deputy Kerrigan

To that point, an air bag is very thin until you put air in it so it slides into things and as it expands it can move
things. They are a pretty useful tool.

Alderman Laws

| imagine it reduces potential damage to property.

Deputy Kerrigan

Yes.

Alderman Laws

Because instead of chiseling away at the concrete of a building you can throw in an air bag, ok, thank you.
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Utility Appraisals (Value: Not-To-Exceed $45,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
GEORGE E. SANSOUCY, PE, LLC, IN AN AMOUNT NOT-TO-EXCEED $45,000. SOURCE OF FUNDING
IS DEPARTMENT 132, ASSESSING; GENERAL FUND — OVERLAY

ON THE QUESTION

Mayor Donchess

We have a representative of the Assessing Department here in case there are questions or comments. Any
questions or comments?

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Purchase of Circulation Desk and Shelving (Value: $20,953)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
TUCKER LIBRARY INTERIORS, LLC, IN THE AMOUNT OF $20,953. FUNDS ARE AVAILABLE IN
DEPARTMENT 179, LIBRARY; GENERAL FUND

ON THE QUESTION

Alderman Laws

| don’t want to cause any issue by asking all these questions but sorry | apologize.

Mayor Donchess

We welcome questions, don’t worry about.

Finance Committee - 6/20/2018 Page 5
Alderman Laws

When you read the contract it says that we are responsible for the removal of the old desk and the addition of
new electrical wiring. It says that in the contract. Is the City going to pay for that, is the Library, | guess that

would be the City paying for it as well. But do we have a plan in place to take care of that because | imagine
that is at least a little bit of work.

Mayor Donchess

| can only assume what is going to happen which is that the Library will take care of that potentially with the
assistance of City Personnel like Jay Hunnewell but that this will be done in-house. But we can get a definite
answer on that if you want.

Alderman Laws

Just curiosity.

Dan Kooken, Purchasing Manager

| can find out and get back to you.

Mayor Donchess

Dan will get back.

Alderman Caron

Thank you. | agree with Alderman Laws, | think probably why the City is taking the old desk out is it cuts the
price down a little bit. But I’m not sure about the electrical. But usually, that’s what sometimes the
departments will do will have their own staff take it out so you don’t have that additional cost. So that could be
part of the reasoning.

Alderman O’Brien

| think just so the people at home who don’t see what we are looking at, the current desk has been there for 48
years so | think it has served its purpose. | was surprised to see it is not ADA compliant, so our citizens who
are using wheelchairs or anything, this will make it easier access as well as it should be and everything. It is
about time maybe for the Library which is our technical center to step up and to get in there so very much
needed; 48 years | think we have done well.

Alderman Laws

For the record | would like to say | completely agree with you and if I’m not mistaken, the Nashua Library is the

second largest library outside of Boston or north of Boston, right. So it is a gem of the City and | agree that it
needs that. It was just curiosity. It seems like a lot of work, then you have to pull permits.

Mayor Donchess

| would say that the top 3 are Manchester, Nashua and Portland, Maine. Portland has a pretty big library. So
does Manchester, so | don’t know where it ranks. Anyway, any other discussion or questions?

MOTION CARRIED

UNFINISHED BUSINESS — None

Finance Committee - 6/20/2018 Page 6

NEW BUSINESS — RESOLUTIONS

R-18-042
Endorser: Mayor Jim Donchess
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO A LEASE AGREEMENT WITH LIQUID
THERAPY, LLC FOR 14 COURT STREET, UNIT B.

Mayor Donchess

And Mr. Vayo is here to discuss this | believe, so why don’t you come up? This is on a referral from the Board
of Aldermen. Could you, Mr. Vayo please explain the proposal?

James Vayo, Downtown Specialist & OED Program Coordinator

Absolutely, thank you Mayor for the time and thank you Aldermen for giving me some time to explain this
project and this resolution before you. About six months ago | was approached by Stan Tremblay and Jason
Palmer, two individuals that know Nashua, one a resident, looking for space in Nashua that they could lease to
start a brewery. Director Cummings and myself met with them and toured a couple spaces and after some
time together discussing various sites, 14 Court Street was mentioned in conversation. We went to go look at
the space; they absolutely loved the space and wanted to be able to rent it.

In further discussion with Director Cummings and at the direction of Director Cummings, we looked at ways
that we could use our revolving loan fund to help them get this space into a condition where they could
habituate it. There are many things about the space that don’t meet the requirements for leasing it out. Over
the last six months, | have been meeting with them regularly to review their business plan, to review fit up plan
for the space and review a budget. They basically have come in at about $100,000.00, $125,000.00 in fit up of
the space. Through our loan fund that we manage, we are going to be able to give them a loan to make these
improvements to the space so they can occupy it.

As part of that overall process, one of the things that we came to terms with them about is that if you are willing
to make this investment and do this work, we can lend you the money, we would give you a break for a period
of time on the lease until the loan is paid back basically. And then you would pay regular rent. This is a really
good strategy for occupying this space because it takes an otherwise dead and vacant and unproductive space
that the City owns and manages and puts it in the control of a third party that has a vested interest in keeping
the space up to code and occupied and pleasant looking. Also, it also is a midterm investment to revenue that
the City will see. Starting in year 5 they will pay, | don’t have the numbers directly in front of me, but
approximately $30,000.00 a year. That amount of money will grow by year 10 to $37,000.00.

| think this is a good investment for the City and | am happy that it has gone through the process of vetting.
One other thing to note is Liquid Therapy is also working with Regional Economic Development Corp which is
our Region’s Economic Development Corporation. They also have a loan fund and have joined in with the City
of Nashua in lending them money for their equipment. So they are taking a position on their equipment and we
are taking a position on the building and those two things together are giving them the capital they need to
open their doors to the public. And so what | am hoping will happen is in early July we will be able to finalize
the lease with Liquid Therapy, they will begin construction and sometime at the end of August they will open
their doors and we will all be able to have a celebratory libation at Court Street.

Mayor Donchess

To be clear, this is the space in a fire station where the bays where the fire trucks used to be housed. Not only
the trucks but the wagons, right?

Finance Committee - 6/20/2018 Page 7
Alderman O’Brien

Right and prior to that were the horses, Mr. Mayor.

Mayor Donchess

That’s what | meant the horse wagons, right. Any questions or discussion?
Alderman O’Brien

Yes | just want to say that | am totally supportive this, particularly old buildings and when it was a fire station |
think you can know what my position being on the fire department, the affinity, you loved them, we lived in
them. They were our second home. To see it repurposed to this | think is good, | think it will draw a lot of
questions that come up from a lot of our constituents on what we were going to do with 14 Court Street. | think
this fits right into something that we can enjoy. How about access off of Main Street? You've got Library Walk
that comes right up there. So it would be just a finger coming up to go into enhancing that particular
neighborhood. To have it as a brewery as an ex-firefighter, retired firefighter, it’s a good thing. It fits within the
parameters. | think esthetically it will be pleasing to people but | do have one question out of this and to the
level of different breweries to which was an education to me, this would be a nanobrewey. Could you just
explain what a nano is for people like me who didn’t understand what a nano was?

Mr. Vayo

Through the Mayor to you it is basically a classification of the quantity of beer that you can brew in a given
year. So their classification with the, | forget what the federal entity is that manages the production of alcohol
products, but basically they are nano brewery plus, which means that they can also serve food. So they will
have a kitchen in the back along with a two barrel brewing system. They anticipate brewing somewhere in the
order of 2,000 gallons of beer a year. So that works out to roughly about 45 kegs. They are very small and
this is strategically a first step for them. If they are successful with their model they will look to ramp up over
time and make further investments.

Alderwoman Kelly

Thank you Mr. Mayor. | think this is a great idea and as an entrepreneur | love that spirit. | do have a question
about this fit up, so they are going to put $100,000.00 in the fit up. God forbid something happens we lease it
to them and in 5 years we end up back with the building. What is the cost to us to now use that as something
else?

Mr. Vayo

Alderman Kelly | would say that’s a great question and the way | can explain it best is we have a loan fund
that’s specific purpose is to lend to businesses to help them start up or expand and grow, or in some instances
restructure. Typically those loans are somewhere between $180,000.00 somewhere in that range. Itis a
program that the City has run for over 20 years. The program has just under $1 million dollars in capital total
and about 45% to 55% of that money is out lent at this point. So we have a pool of capital which part of my
primary role here in the City is to make sure that money gets lent out. So the Liquid Therapy meets the criteria
for lending and so we are going to let them borrow that money.

What is unique about Liquid Therapy in terms of us lending them capital is that they are not, they don’t meet
the traditional standard of collateral where they would have to have a certain amount of equipment or making a
certain amount of investments in something that could be recouped in order to give the loan. But since we
own the building and since we are only lending to the tenant fit up portion of the building, our collateral sort to
speak in this exchange or this loan is the building itself. So what would happen is if let’s say Liquid Therapy
didn’t make it as a business. We would have a fully fit up building which we could then lease out to another
party. So that’s our backdraft or safety on the funds that are being invested into the building.

Finance Committee - 6/20/2018 Page 8

Alderwoman Kelly

So | guess my question is are they doing enough construction that what if that were to occur, that we would
have to find a brewery to go in there, do you Know what | mean? It seems like that’s an intense amount of
construction. We can’t suddenly sell it to someone as office space.

Mr. Vayo

So this space doesn’t necessarily lend itself to an office use but it definitely could be repurposed for retail use.
We are not paying to buy any of their equipment, so the barrels that they brew in or the kegs or any of that,
that’s all being lent from Regional Economic Development Corp. What is left is walls, finishes, mechanical,
electrical, plumbing, the installation of bathrooms, the installation of a kitchen so all the fixtures such as sinks,
mop sinks, all that is going to stay in the building and basically make it that much easier for the next person to
fit it up in the event that they didn’t succeed which none of want to see but we have to plan for that and that is
what we have done.

Alderman Caron

Thank you, | think this is a great idea, my question because we know that Court Street has a lot of problems
maintenance-wise, how much money is the City paying for any repairs or things that need to be done to that
building or electrical or heating to get this up and running. Because | know you have an August date but is
there anything that is outstanding that needs to be done to that side of the building to make it usable?

Mayor Donchess

You want to answer that?

Mr. Vayo

I’m happy to. So the building improvements that are needed to make the space leasable are being addressed
by the tenant that is occupying the space. So all the improvements to the electrical which include the
installation of the subpanel, lighting, mechanical, ventilation, heating and cooling are all equipment that is going
to be tied into the tenant space at the tenant’s own cost.

Alderman Caron
Ok thank you.

Mayor Donchess

There is this caveat unrelated to this particular tenant, Jay Hunnewell and the building people have taken a
look at the roof but this is the entire roof for the entire building, over the theater, everything else. It is not in
good shape and should be replaced, but that should be done regardless of this. It is not tenant-specific. That
is not specific to these people.

Alderman Caron
Thank you, | appreciate that.

Mayor Donchess

Anyone else, questions, comments? One thing we should think about, which we have discussed a little bit, but
putting some kind of marker, neon or something down at the bottom of Library Walk to remind people that
there is step up in the back there. That wouldn’t be maybe specific to this business but it would be nice to kind

Finance Committee - 6/20/2018 Page 9

of activate that walk and get people to do that, think about that. Maybe you already have, you probably already
have.

Alderwoman Kelly

Yes Mr. Mayor, | was just wondering if you knew much more about the roof and if that is something we are
going to have to do before, | want to make sure | was clear.

Mayor Donchess

| don’t think we have to do the roof before, but we have to do it pretty soon.
Alderman Laws

Director Cummings last night at PEDC mentioned that he is putting together a package to present to us and |
think he gave us between $100,000.00 and $500,000.00 that is going to address the roof and any other
functional issues at Court Street. So he’s definitely working on it.

Alderman O’Brien

Yes just a question if anybody knows it. | imagine when that building was built it was slate, is it still slate?

Mayor Donchess

| do not. It’s not right, isn’t it shingles at this point?
Mr. Vayo

It is asphalt shingles.

MOTION BY ALDERWOMAN KELLY TO RECOMMEND FINAL PASSAGE
MOTION CARRIED

R-18-048

Endorsers: Mayor Jim Donchess
Alderman Ken Gidge
Alderman Linda Harriott-Gathright
Alderman Patricia Klee
Alderwoman Mary Ann Melizzi-Golja
Alderman Jan Schmidt
Alderman-at-Large Michael B. O’Brien, Sr.

Alderman-at-Large Brian S. McCarthy
AUTHORIZING A SUB-AGREEMENT BETWEEN THE NASHUA REGIONAL PLANNING
COMMISSION AND CITY OF NASHUA, NASHUA TRANSIT SYSTEM

Mayor Donchess

Ms. Marchant again is here on this one and the next one. So would you please explain to the committee the
purpose of this contract?

Finance Committee - 6/20/2018 Page 10
Ms. Marchant

Absolutely, as part of our federal funds from the FTA and our partnership with NH DOT we have an NPO
agreement with the Nashua Regional Planning Commission to help provide some of the services that we are
required to report on or some of the comprehensive planning that is required as part of the transit system. This
agreement defines what NRPC’s responsible for and what the City of Nashua is responsible for. NRPC gets
funds directly from the State of New Hampshire to help offset the cost of supporting NTS and some of the
transportation work that they do. This outlines what we are responsible for and what they are responsible for.

There are no new responsibilities here, there are no new costs here this is something that has been going on
for a very long time, we just have to renew it every 5 or 10 years and this is a renewal.

MOTION BY ALDERWOMAN KELLY TO RECOMMEND FINAL PASSAGE
MOTION CARRIED

R-18-049

Endorsers: Mayor Jim Donchess
Alderman Ken Gidge
Alderman Linda Harriott-Gathright
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman Tom Lopez
Alderwoman-at-Large Shoshanna Kelly
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Michael B. O’Brien, Sr.

Alderman-at-Large Brian S. McCarthy
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO A CONTRACT WITH THE SOUHEGAN
VALLEY TRANSPORTATION COLLABORATIVE FOR TRANSIT SERVICES

Mayor Donchess

And Ms. Marchant again will explain this proposed contract.
Ms. Marchant

Yes, thank you. This is a revenue contract; all the other ones came a little bit earlier in the year. This is a
contract by which Nashua Transit System provides service to SVTC, we provide the buses and the drivers, the
dispatch operation side of service. SVTC provides non-emergency medical trips to seniors, disabled and
others in a lot of the towns west of us here all the way as far out as Wilton, mainly in Milford, Amherst, Hollis,
Brookline and also goes over into, | think it might actually go almost as far as Lyndeborough now. It goes
pretty far west. They pay us an hourly fee for the services that we perform for them and this is a fabulous
contract for NTS because we can use it as direct matching funds to the FTA and it is one of the ways we keep
the City’s contribution down.

MOTION BY ALDERWOMAN KELLY TO RECOMMEND FINAL PASSAGE
MOTION CARRIED

Mayor Donchess
Now while you are here, can | ask a transit question?