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Special Board of Aldermen 03-21-2022 Page 3

So through this process and into the fall, the Joint Special School Building Committee was handed off the project by
the Board of Education and approved Harriman as the architect and Harvey Construction as the Construction
Manager. More recently, we’ve hired the Engineering Corporation as our consultant for traffic analysis and SLR
International as the GeoTech. We talked a little bit more about why we had to hire those two. We have other
consultants that we have to hire as time goes on.

Some things I’d hope to accomplish this summer with the bonded funds are install those two egress stairwells, replace
bathroom fixtures, and install ADA compliant bathrooms. So we have some individual one seater bathrooms in the
facility, but they’re not ADA compliant. For example, you go in there with wheelchair now and you don’t have the
swing space you need for the door. You have to have that if you’re in a wheelchair for ADA compliance. Stair railings
- particularly for the little kids are just too high. If you are going to the building, you'll see that. The handicap ramp |
talked about. Having been there now for a little over a half year, we’ve seen Some minor changes we want to make.
Dumpster enclosure, the high school program has been asking for an exterior basketball half court and we'd like to
accomplish that and then some site work. I'll talk about the traffic congestion here shortly.

So this slides just summarizes real quickly the cost - how we came up with close to $5 million in the bond request.
We've got pretty good numbers from Harvey Construction on the actual construction costs. We do have proposals
from the architect for their fees, consultants — I’ve named two of them for you before and there are four others that |
still need to hire. Effefanies, furniture, fixtures and equipment in many cases for Preschool we’re bringing their
furniture with them but there are other things we'll have to purchase to outfit the school. Any project | have particularly
relates to construction, | have contingency for and the architect also needs a contingency because they can’t foresee
every single thing, particular those hidden gremlins that are behind walls, site modifications, and then some IT security
issues that we're budgeting a little bit for and Alderman Dowd thought we should round it up to a nice even $5 million
dollars.

So Franklin Street, if you’re not familiar with it, on this slide we are looking at the east side and the west sides of the
school. These are where the emergency stairwells will be installed on the left hand side that’s the east; the stairwell
will almost right at the corner of that building. We've already made the provisions inside the third floor for a hallway to
meet up with that and then on the west side it’s going to be pretty much just to left of that small door that you see on
the first floor, the ground floor.

Just looking at it from the top of the schematic drawings from the architect, those were two egress stairwells would go
- left and right and they’re also showing the handicap ramp on the front of the school. So the way we’ve been able to
get through the ADA issues this year so far is the back entrance has handicap access. Talking to the school Principal
and the teachers, they'd still like to have the handicap ramp in the very front as well.

Just threw this in. It just shows the egress stairwells from the side — what they look like. We might want to consider
covering them but this doesn’t show that. So for icy, snowy weather, it’s something you probably want to consider.

So we'll start showing you several conditions around the site and that goes back to my discussion. Stairwell
modifications - these are the existing handrails that were built for hign school age students. So you can imagine a 4
or 5 year old can’t reach up there. So we have to provide lower rails. Restroom upgrades — | went into the first floor
this past week and looked in the same bathroom. They brought in little stools for the kids to stand on so they get to
the sink to wash their hands. You got sinks that are lower and we need to install those. The same thing with the
toilets. You can buy toilets that are suitable for little fannies so sit down and not have jump up to do what they do. So
we'd take care of all that.

This is the current dumpster. We originally had it on Winter Street (I'll talk about the streets in a second). That was
very congested. We worked with solid waste on the best place to put the dumpster short term and long term. So this
is on the west side of the building and that is where it is. That’s probably where it’s going to end up, but we want to
put a dumpster pad in there and have it fully enclosed with fencing as it should be particularly on a highly traveled
public street.

This gives you a better idea of the site itself. Where the white cursor points in the picture, that’s Winter Street. So the
building directly below it is 55 Franklin Street and that is our building. To the bottom of that is Franklin Street, to the
left is Charles, and to the right is Locust Street. Franklin Street to Charles Street is a major thoroughfare. To the
right, it goes to Main Street and to the left, it goes up to Amherst Street - also is major access to the neighborhood
which is off to the left. So an awful lot of traffic goes through there. It’s very narrow especially on Franklin Street
directly in front of the school and currently that is where we do our drop-offs and pick-ups. I’m looking for the right
word - tenuous, exciting, dangerous because you have people lined up there. You have parents dropping off their
kids. They can pull all the way over and open up their doors and other traffic is trying to get past them, so it’s nota

Special Board of Aldermen 03-21-2022 Page 4

good situation. That’s that side. So we've hired a traffic consultant to help us with this. They have come in and
started to do traffic counts. They've studied the site. They’re supposed to get back to us by the end of this month with
some recommendations. So currently there is about 80 students in the preschool. There are two sessions - morning
and afternoon. All of them are dropped off by their parents. There are no walkers at all. So you can imagine there is
quite a bit of traffic.

The Brentwood Program - High School Program - has | believe about 18 high schoolers enrolled currently. They are
all bused. There may be a couple that get dropped off by their parents, but mostly bused. So those are two or three
small buses that drop them off. Some of the ideas we’ve had is to go just past the main entrance off Franklin Street
and do a cut in for people to pull in to drop off kids. There is a fair amount of real estate to the left that we could cut in
as well for the buses to drop off. We've talked about the Winter Street, which is also a residential street and very
narrow so that’s the street to the north or above the school. We’ve talked about making that a one-way street, making
it so there is no parking on the street while school is in session. Those are things that your purview as Aldermen to
consider but | think we all need to wait for that traffic consultant to get back to us. We’ve also involved Dan Hudson,
the City Engineer, and he is aware of what we’re doing and he’s been part of our discussion. So those are the traffic
considerations.

This just gives you more of a surface level view to the left, you’re looking towards Main Street. You can see that’s just
a single lane going each way and then to the right is looking up Charles Street to the north. To the left, you’re looking
up Winter Street. You can see the Church in the background so you’re facing Main Street. There’s about 6 parking
spaces currently there and the center slide is the same street, just looking in the other direction. Then finally the far
right is looking up Locust Street. So that’s kind of the view around the site. You can see it’s basically a postage
stamp in the middle of the City. It’s not much land around it, not much room to work with hopefully working with a
consultant.

We've also talked to the Pastor of the Church who ran a school there before and how did he do it because had a first
through twelfth grade school there before. He actually used a parking lot. So there are four parking lot bays between
us and a church. He used one of them - the cued up the parent through one of those parking lots. So we currently
have easements to use the two center parking lots, so maybe we can work out something that way. That will be part
of what we look at.

These little snapshots are just pictures of the main entrance on the top left. The overhang is in pretty sad shape and
we're looking to do some work with that with bonded money. The next one over is the rear entrance. We’re looking to
replace the overhead door which is on the left-hand side of that.

The next slide over is the conference room which is on the second floor. We want to be able to close that in so you
can have some privacy when you’re having your conference rooms and right where that column is, is where one of the
ADA bathrooms would be constructed. Throughout the school, we have these old water fountains. | have no idea
how old those are. We have done water testing throughout the school and found for lead primarily. We found that
there is no lead so we’re in good shape that way. Bottom row, just different pictures of the basement. They’re
primarily currently using the basement for recess. So if you have inclement weather outside, then they'd go down
there and play. The other thing | want to do with the fire extinguishers on the right-hand side, they're just hanging on
hooks. Probably not a good idea. Both the preschoolers and high schoolers, so we want to put those in fire cabinets
inlaid into the walls so they don’t become something for kids to pull on.

We anticipate because of all the ESRA funded work is taking place this summer. The sum of our work is going to take
place the following summer so the bonded money is really a two summer issue. We do have asbestos in the school,
particularly in the flooring. Old carpeting being held by asbestos containing mastic or glue so we want to replace that.
When they constructed the school, the sheetrock itself was fine but the joint compound they used contained asbestos
so we have to be careful when working with that. We are actually looking to replace the asbestos on all the walls on
the third floor. I’m trying to figure out how to say this delicately - the clientele on the third floor can have control issues
and sometimes they put holes in walls. When you have sheet rock walls with asbestos in them, we have to call in
asbestos company to do the abatement then we can replace the sheetrock. So that becomes an expensive
proposition over time. So our feeling is let’s just get rid of that stuff and it’s not a hindrance, it’s doesn’t come with a
health threat for anybody, it’s just the best way to go. We'd do that the following summer. Roof membrane - we’d like
to replace. It is getting old. There’s a lot of roof penetrations that we'd like to get rid of that are no longer needed and
eventually put solar on the roof to reduce our footprint and reduce energy costs.

Some more pictures. The left-hand slide that shows very old carpet. | have no idea how old that is but it does have
mastic underneath it. It contains asbestos. The tile floor right beside it is asbestos containing tile. Typically if those

Special Board of Aldermen 03-21-2022 Page 5

are 9 x 9, that’s a dead giveaway it contains asbestos. To the right, shows one of the instances where we hada
youngster decide to attack one of our sheetrock walls, so we covered it with cardboard until we could have it abated.

So if you go back to the slide where | went through the rough budget items, we did ask for contingencies. | talked
about that a little bit and I’m just laying it out here. So | set aside 10% of our construction budget for both our
contingency and for the architect. We don’t know what the traffic consultant is going to come back with us, | was just
talking with the architect and he suggested a 5% contingency for that. It may turn out we don’t change anything
physically with the site. It may just be extra lines, speed bumps on the road perhaps. We'd have to work with city
engineering to decide what the best thing to do there is but that’s just strictly contingency.

| talked about this already — furniture, fixtures, and equipment.

They're not only doing the ventilation system that I’ve talked about LED, but they’re also going to be replacing the
windows with more efficient windows. Since we’re doing so much work that involves electricity, they’re actually going
to be changing the electrical feed into the building which is probably original. Again, that’s all going to be funded
through the State Department of Education with those funds. | think that’s the end of my presentation if you have any
questions.

Chairman Dowd

Do any of the Aldermen have any questions for Mr. Smith?

Alderman Clemons

Thank you for the opportunity. In regards to the traffic, | know it’s an immediate concern and an immediate need but |
would hope also that you would put into some consideration the fact that at some point that area is probably going to
hook up to the Broad Street Parkway. | would think that there is a number of different considerations with what we are
going to do with Main Street and reconfiguring things like that. | don’t know if that was put on your radar but | know
that the immediate need is to figure out what to do right now but | just think that also needs to be under consideration
as well.

Shawn Smith, Director of Plant Operations, Nashua School District

May | respond?
Chairman Dowd
Yes.

Shawn Smith, Director of Plant Operations, Nashua School District

| was aware of that but we do have Dan Hudson on board as part of our team so hopefully he has that on his radar.

Alderman Clemons

Okay, thank you.

Chairman Dowd

That can also come out as well as part of the traffic study.
Alderman Klee

Thank you. This is my Ward and I’ve been getting a lot of complaints since the school started. Hence, we’ve got the
signs put up and all of that. There have been a lot of parents that have had concern that their little ones even though
they’re in-hand by nature of these types of students have a tendency to be a little bit more wandering and so on and
we have had a few that have walked out into the roads. When you've got people stopping and so and so, it is to
answer Alderman Clemons’, it is an immediate need and | know there aren’t many school buses but there’s still
enough school buses that are wreaking even more havoc. When September came, it was a real eye-opener to the
number of calls that | was getting. | was surprised and so and so. I’m really glad to see that we have this going. |
made a lot of noise about Pennichuck so they took Pennichuck away and put it in Ward 2. So maybe they'll take

Special Board of Aldermen 03-21-2022 Page 6

Franklin Street away from me and put it in Ward 4 who knows but while it’s in Ward 3, I’m going to make a lot of noise.
So anything that we can do sooner than later. This is a priority. It is a true safety issue for families and so on.

Just a quick question putting all that aside. When we move the Brentwood Program and all the other programs
basically up under this roof, | Know we had to move them from being under the JSSBC. I’m aware of it. There is cost
savings also isn’t there to moving all these under one roof, not having to transport these students. There is not quick
as much of an emotional toll on them as well putting them in one location. Is that correct and do we have any
numbers as to - you probably don’t have these numbers, but.

Shawn Smith, Director of Plant Operations, Nashua School District

| can speak very broadly. | think, again, don’t quote me on these. | think for Brentwood we were probably paying
$150,000 rent give or take.

Chairman Dowd
$200,000.

Shawn Smith, Director of Plant Operations, Nashua School District

It probably started at $150,000 and over the years it went up a little bit. | don’t Know what we're paying for church for
the Title One Program that was moved. | think the same is also going to be in staff. Brentwood probably isn’t going to
change except they will use the same nurse that the preschool would use but | would think for the preschool program,
that’s where you are going to start seeing the savings and staff - not the teachers themselves but the people that
would have to travel from school to school - psychiatrists, OT people, that sort of thing. But that’s really not my - | do
bricks and mortars and HVAC.

Alderman Klee

| think for the public to hear, | think it’s a cost savings. It’s an emotional savings not to have to transport them and
there must be a transportation cost because we were busing them to that location and there were other issues of
students needed to have a half day and so on. | do remember hearing at the JSSBC a lot of the issues that were
brought up to the School Board.

Speed bumps - Mr. Hudson is on it. The City seems to frown against speed bumps because of the plows but anything
we can get to slow that traffic down | would be very happy. Thank you.

Alderman Wilshire

Thank you. So Shawn | know you said you’re going to be replacing the asbestos containing sheetrock walls on the
third floor? Would you consider putting something other than sheet rock back up? | know where | work we have the
same population. They were really good at punching, and making holes, and then they’d fix it and the next day they
do it again. So it’s kind of like a game. So we ended up putting like a thicker board - like maybe four feet up because
when you punch up, you lose velocity a little bit. Just wondered while you're doing construction if you considered
something harder than sheet rock?

Shawn Smith, Director of Plant Operations, Nashua School District

So there’s actually abuse-resistant sheetrock that is much harder. Back when we built the South High School, we
gave Tim Nickerson a sledge hammer and we put some of these boards against the wall and we dared him to break
through the abuse-resistant sheetrock and he couldn’t. So we would probably do something like that up there.

Alderman Wilshire

Okay. Thank you.

Alderman Cathey

Thank you Shawn and thank you Chairman. This is the permanent long-term home for these particular
programs?

Special Board of Aldermen 03-21-2022 Page 7

Shawn Smith, Director of Plant Operations, Nashua School District

Yes it is.

Alderman Cathey

And this bond is to get the building in working order but then there will be more long-term costs down the road, or is
this like more than just bare minimum to get it operational where we wouldn’t have to then put more costs into it
almost right away or do you not know?

Shawn Smith, Director of Plant Operations, Nashua School District

So | was asked the exact same question recently. My view is that we will not have any costs, anything like this for a
very long time. All the major systems are being replaced. The HVAC systems are being replaced. The roof is being
replaced. We’re taking all the asbestos on the floor at least out of the school. The electrical system is being replaced.
The main parts of the school are made out of CMU - concrete masonry units if you don’t know what that means. So
it's a cement type thing and you have two holes. The holes are so you can put grout in it, and rebar, and stuff like
that. So | don’t expect there will be any major cost down the road. | put together a Capital Improvement Program for
the School District and | don’t foresee anything going in there in the next six years at least.

Alderman Cathey

Okay, great. Thank you Mr. Chair. Do we own the first parking lot when you see in the pictures have the cars already
parked in it or do we not own any of those lots?

Shawn Smith, Director of Plant Operations, Nashua School District

We do not own any of the lots. We just have the two middle lots - easement for those two. The first lot is used by the
— there’s a program right across the street from us - Plus Loft 34.

Alderman Cathey

Is there any possibility of maybe acquiring some of those lots at some point? Not the Loft 34 one but the other two
lots?

Shawn Smith, Director of Plant Operations, Nashua School District

We can ask. I’ve had that on the back of my mind. In fact, I’ve had my eye on that first lot too but | don’t know how
much flexibility there is.

Chairman Dowd
One of my action items to Shawn is to check alternatives to try to get that first lot.

Alderman Cathey

That would be great because we could have it right there.

Alderwoman Kelly

Thank you for bring this forward. It sounds like there is some good work to do to make this building in working order
for the students that go there. My question was actually about capacity. So, if we’re putting preschools in now, if our
preschool program grows, or the Brentwood Program grows, do you have enough space in this building to grow into?

Shawn Smith, Director of Plant Operations, Nashua School District

So | gave you the current number for the preschool. It’s about 80. Next year if we get all this done, it will grow to
about 200 and we feel that there is sufficient space for that. We figured that’s a pretty good number. That number will
stay pretty static. The High School Program, we are planning for it to grow to 30 to 35. So there’s excess capacity
there. Part of what we’re hoping will happen is there are already a couple of kids that come in from outside out District
and pay the District a good amount of money. Again, I’m not the financial guy but we’re hoping that once we get this

that includes delivery to the appropriate building, floorand room.

Set up willbe done at the same time/date the order isdelivered, unlessadvance mutual written agreement
isin place. Personnel representing the Contractor will have the proper installation certification, enabling
them to perform allinstallationsin accordance with manufacturer sguidelinesand specifications, and in
accordance to the approved installation floor plans. The Contractor willbe responsible for the conduct and
appearance of allinstallation personnel.

Failure of the Contractor to make a site vist doesnot relieve the Contractor of responsibility to fully
understand what isnecessary to accomplish a successful and complete installation.

Packaging:
chipmentsare to be properly packaged to meet accepted commercial standards. If productsare delivered

to the site ina damaged ordefective condition, the Contractor will offer the Sate of New Hampshire the
option of using those productsat a discounted rate with the same warrantee or temporary (substitute) similar
productsat no charge until the replacement productsarrives. The Contractor isresponsble to keep requesting
agency updated on the statusof productsthat are re-ordered due to defect ordamage.

Punch List:

The Contractor will perform a “walk through” of all new installationswith the agency’srepresentative, making
note of any damaged, missing, or miss ordered items, documenting them in the “punch list” along with
notation regarding how the partieshave agreed to resolve allproblems. The “punch list” willbe reviewed and
signed by both partiesand a copy left with the receiving agency’srepresentative. For ordersof $10,000 or less,
alldiscrepancies or problemsnoted in the “punch list” must be resolved before the Contractor's invoice willbe
paid by the Aate of New Hampshire. For ordersof $10,000 or more, 10% of the payment shall be withheld by
the Sate of New Hampshire from the Contractor sinvoice until such time all “punch list” itemsare resolved.

Warranty Requirements:

The Contractor willbe required to warranty all equipment/product awarded fora period of not lessthan the
manufacturer's United Sateswarranty standard period of time or standard number of yearsindicated by
manufacturer, from the date the itemsare received, inspected and accepted by the Sate of New Hampshire.
The warranty shall cover 100% of all parts, shipping, labor, installation, travel, lodging and expenses.

Return Charge:
There shall be no restocking or other return fee forthe return of manufacturersstandard product lines.

Custom manufactured itemsmay not be returned, unlessthe Sate determines the itemsdo not meet
specifications.

Storage Charges:

lf, during the term of thiscontract, a receiving agency notifiesthe Contractor lessthan 30 daysprior to the
agreed delivery date (which wasstated on the Purchase Order (PO), or under separate written agreement)
that the delivery willbe delayed by two (2) working daysor more, storage charges for “*large orders’ (as
defined below) may be billed to Sate of New Hampshire (to the agency requesting the delay).

“Storage fees shall be charged only on “large orders’ which are defined asorders requiring at least half a
tractor-trailer for delivery, orhaving a total net purchase price of $50,000 or more.

Siorage chargesare not to exceed the amount set for in the following schedule:
e Daily Billing Rate for Sorage Shall Not Exceed - $100a day
e Weekly Billing Rate for Storage Shall Not Exceed - $300 a week
e Monthly Billing Rate for Sorage Shall Not Exceed - $1,000 a month

Site Clean-Up/ Recycling of Packaging:
No packaging materialsand/or boxesare to be left at the delivery ste. The Contractor isresponsble for

removaland recycling of allpackaging materials.

Compliance:
Allproductswill be certified by the Contractor asbeing new, not used, or rebuilt, orhaving been used as

demonstration or evaluation equipment.

If proper delivery notice isnot given to agencies, delivery may be refused and Contractor will deliver at a later

RFB # 2166-19 Page 3

Special Board of Aldermen 03-21-2022 Page 8

established or more established and we have a more permanent location, then we'll bring more kids in from outside
our District. It will basically be another revenue stream.

Alderwoman Kelly

Thank you.

Chairman Dowd

Any other questions for Mr. Smith? And by the way, they also did look at building a new building but a) there weren’t
any lots available which you can get a reasonable price for and to build a new building, you’re talking somewhere
between $30-40 million and probably a 4-year effort. | don’t believe there was any bonding used to purchase the
building. We got it at a really reasonable price and the big expense for the towers was driven by the Fire Department.

Alderman Klee

Just a real quick question. You mentioned about the parking and so on, where do the staff and teachers park? That’s
my concern this being a neighborhood all around.

Shawn Smith, Director of Plant Operations, Nashua School District

So there are six or seven spots right behind the school. That’s primarily the Directors, and the Principals, and the
secretary. We have those two easement lots between the school and the church. So there are four lots. We have
the middle two.

Alderman Klee

So that’s where they’re parking?

Shawn Smith, Director of Plant Operations, Nashua School District

Yes.

Alderman Klee

Thank you.

Chairman Dowd

There’s actually plenty of parking for the school if we could move the lot one closer to the school that would be great.
Alderman Klee

I'd rather them not just on the street where the residents are trying to park so thank you.

Alderman Sullivan

Thank you. Great presentation. This is the second time I’ve seen it. We saw it at the Joint Special and | liked the
program a lot. It’s a strategic plan where it does many things by doing one thing and that’s what | like about it.

My question is you mentioned - so we’re looking to bond $5 million to kind of bring it up to code if you will. You
mentioned ESSR grants. So what is the total construction cost to bring the building up to code? How much is ESSR
shouldering and obviously we know the bond is $5 million so what is that delta?

Shawn Smith, Director of Plant Operations, Nashua School District

I’m not sure | fully get the question but we’re looking between $5-6 million from ESSR.
Chairman Dowd

That’s not a grant. That’s free federal (free isn’t the right term), but its federal funding that doesn’t need to be paid

Special Board of Aldermen 03-21-2022 Page 9

back and that HVAC project we wouldn’t have to do now but the funds are available to do it. That defers any long
term additional maintenance costs for the building. You'll have a state of the art HVAC system and compliments of
the US government and most of it has to do with better air quality because of the pandemic.

Alderman Sullivan

So my question was from the sounds of it so I’m hearing it correctly, it sounds like the total cost all in on this project is
about $11 million.

Shawn Smith, Director of Plant Operations, Nashua School District

Yes.

Alderman Sullivan

$5 million from the bond and $5-6 million from ESSR.

Shawn Smith, Director of Plant Operations, Nashua School District

Yes. We spent about $360,000 last summer doing what we had to do. It was the fire alarm system, intercom system,
things like that.

Chairman Dowd

Any other questions? Okay, I'll now open it up to the public hearing. I'll now take any testimony in favor of
R-22-016. Please identify yourself and address.

TESTIMONY IN FAVOR

Laurie Ortolano

Laurie Ortolano, 41 Berkeley Street. | just have a question and | understand the project here. Was this bid out
separately or was this project piggybacked with the middle school renovation? Did you go for competitive bids on this
$5 million or was it folded in to what was going on with the middle school? I’m just curious. | don’t even know.

Chairman Dowd

It’s separate funding but — do you want to address the - we selected the firms that we are currently using and had
familiarity with the building because of the preliminary studies. Therefore it made more sense to use people we know
and to do the job at a reasonable price because cost is an effort so they were selected by the Joint Special School
Building Committee.

Laurie Ortolano

Okay. Thank you. And one other question. | notice that the contingency costs 10%, 5% they seem high but this is a
really volatile market for construction and does that in part drive it because it’s such a hard market to cost out your
materials. | don’t know when the $5 million was costed when we came up with that quote but certainly we're back into
high material costs, and inflation, and all that stuff. So do they bill that on the contingency amount? | remembered
when | did school projects, it seemed to me that contingencies were like 2% and 3% now they're 15. | think they need
it because of the volatility. Is that correct?

Chairman Dowd

Yes. Typically they are higher and in this particular project, they bid it conservatively. Again if we don’t spend any of
the $5 million, it doesn’t get bonded or it can be used for something else. The Board of Alderman would determine.
So we feel comfortable with the costs that have been programmed for steel and all that other thing. They took into
account what’s going on with the current market.

Laurie Ortolano

Okay. One last comment, not a question. | understand the selection and working with people we know but | also

Special Board of Aldermen 03-21-2022 Page 10

think it’s important to just remember that, you know, we expand our projects to people who have good reputations that
we might not know as well. If we are always tied to the same firm, it has a limitation and | just want you to bear that in
mind. That’s my only comment and other than that, | support what you're doing.

Chairman Dowd

All of the costs for materials and things are all bid out competitively.

Laurie Ortolano

Okay. Thank you.

Chairman Dowd

Anyone else want to speak in favor?

Lou Juris

Lou Juris here from 56 Haines Street. Good evening. | would support this effort to go ahead and bond these funds
and bring the school up to the codes and the construction and the necessary specifications so these younger learners
and also the learners who are going there for their high school program can certainly learn and graduate from high
school and move on and hopefully stay here in the community. So with that, | would urge passing of this motion.
Thank you.

Chairman Dowd

Anyone else who'd like to be heard in favor? Moving on testimony in opposition? No one in the chamber, no one
online. So once again, testimony in favor?

TESTIMONY IN OPPOSITION — None

TESTIMONY IN FAVOR

Laurie Ortolano

Laurie Ortolano, 41 Berkeley Street. Do you have a bond schedule for this or a cost payout for this done up that we
can actually have a copy?

Chairman Dowd
That would fall to the City Treasurer.

John Griffin, CFO/City Treasurer/Tax Collector

Good evening. John Griffin CFO/Treasurer/Tax Collector. As the resolution was put together, we costed out a level
principal payment and on the second page of the Resolution, the 20-year bond payment would be $315,625 annually.
The total $5 million plus the interest is $6,312,500. Just to put this project in perspective, the general fund debt
service adopted by the Board of Alderman in Fiscal 22 is $16.8 million. So $315,000 is less than 2% of that number.

As far as we move into Fiscal 23 budget, I’m in the process of working with my team to create what's called “a bond
sale”, which we notify the Aldermen these are all the projects, some approved, some not approved yet. We put
together the schedules of payments, General Fund, Enterprise Fund, and other funds - Highway in particular with the
paving program. We will have all those schedules and as this becomes a sale and I’m learning as we go as well too,
that we don’t need the $5 million this summer. Following Treasurer Fredette’s footsteps to avoid arbitrage and other
problems, we'll probably sell this in two chunks but it will be part of a comprehensive bond sale plan. We've been very
successful over the last few years taking advantage of the available rates, timing of the projects, and the bonding. So
we will be presenting. | will be presenting more of a comprehensive plan through a memo at the beginning schedules
and then a discussion.

The thing about bonding and we have a fair amount of high school bonds coming off, so paying those down and we
try to manage the increase in any given year to a reasonable level in the general fund. So we replace things as they

Special Board of Aldermen 03-21-2022 Page 11

need to be replaced. We rapidly pay off our debt. That’s one of - for those of you that maybe attended the 2012-2013
presentation by a financial advisor. We're looked upon favorably the rating agencies. That’s a sign of strength. So all
of that — | mean thank you for asking the question but that’s a kind of preview of the coming attraction that Alderman
Dowd and | have talked about with making sure we all understand the magnitude of the debt, that it's manageable, it’s
paid off rapidly, and it funds the necessary programs and initiatives that we need in the City. That’s a long-winded
answer but that’s the answer.

Laurie Ortolano

Thank you very much. | like to have this educational piece brought forward when we can see or talk about what’s
coming off and what stays on because | think the public has to understand that as we bond things. Even in the future
if we can have a table or something, it’s just really helpful to know that we’re not just keeping it on. We're eliminating
it as well, so thank you very much.

Chairman Dowd

Anyone else? Alderman Kelly?

Alderwoman Kelly

Can | just ask a clarifying question? | know we’re in the public hearing. CFO Griffin you said that the payment would
be $315,625 but that’s an average, correct? It’s not exactly what we're going to pay year-to-year? | just want to
clarify for anyone listening.

John Griffin, CFO/Treasurer/Tax Collector

Sure. Mr. Chairman if | may. That’s an estimate. It’s a 2.5% estimate. We hope to do better. We are planning on an
August sale which would include part of this if we had bought things and so forth but it’s an estimate. It’s level
principal. It’s kind of a complicated process because we usually get 9 to 12 bidders of paper so they have different
views on how they want to structure the repayments. So it could be a combination of level principal, or deferred
principal, things of that nature but we’re trying to make the debt service, especially the general fund subject to tax
revenue. We try to make it as reasonable as possible on the growth. So these are strategies we’ve used. Thank
you.

Alderwoman Kelly

Glad we have you hear.
Chairman Dowd
Okay seeing no one else in favor. Anyone in opposition? Seeing none.

TESTIMONY IN OPPOSITION - None

Chairman Dowd closed the public hearing on Resolution R-22-016 at 6:55 p.m.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE MARCH 21, 2022, SPECIAL MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED

MOTION CARRIED

The meeting was declared adjourned at 6:55 p.m.

Attest: Susan Lovering, City Clerk