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Finance Committee - 9/5/2018 Page 4
Alderman Harriott-Gathright

You are getting matching funds or something on this one?

Chief Rhodes

With the Federal AFG Grant they say it is a 10% match but it isn’t a 10% match, | think it comes out to, my
math and | think your math would be $65,000.00 but it actually isn’t, it is $59,000.00 and change, the way the
Government computes it.

Mayor Donchess
So we are getting a $650,000.00 vehicle in essence for $59,000.00.

Chief Rhodes

Well the reality of it is we are getting closer to a $700,000.00 vehicle for the $650,000.00 for the $59,000.00
investment.

Mayor Donchess

Of local money.
Chief Rhodes

Of local money correct and we anticipate a minimum of 15 years before replacement.

Mayor Donchess

Any questions or discussion?
Alderman O’Brien

Thank you Mr. Mayor. Chief, as a former employee | don’t want to get too much but | compliment you and your
staff for looking at an item such as this and combining different vehicles and getting into one vehicle which is
fiscally prudent to the tax payer and will definitely assist this Department. To explain that further, could you say
what this vehicle is going to do because you mentioned technical equipment which | have an understanding
on, but could you explain to the people at home what this vehicle will be capable of doing and how much of an
asset it will be to this community?

Chief Rhodes

Absolutely and thank you for your kind words Alderman. So currently we provide hazardous materials
response to 19 communities that are in the Souhegan Valley. All of those neighboring communities pay
basically a stipend for all the things it takes to run a hazardous materials team; equipment and physicals and
training and there is a lot that goes into it. So that is a huge bonus to us as a community.

Right now we have two vehicles that are assigned to the Hazardous Materials Response and we have one
vehicle that is actually, well two of the vehicles are repurposed. One of the vehicles is | believe it was a
Bellavance old style hackney body beer delivery truck that we are still using. The second vehicle was a
commercial cab and chassis that started out life as one of the water supply vehicles that we had back in the
day and was turned into an air supply unit in-house by the mechanical division.

What that gives us is for fires which even today more so than before when Alderman O’Brien was there, we
really would with the onset of the cancer issue that is popping up in firefighters and all that, we are really

Finance Committee - 9/5/2018 Page 5
pushing self-contained breathing apparatus so we are using air quicker. That vehicle comes at fires that are
second alarm or greater. The problem we have now, as you can imagine, so that takes three employees to
bring these three trucks to an incident. Our plan is to incorporate that all into one vehicle. So we become a
more efficient organization but we can also get that equipment there much quicker.

And again, the equipment that we are replacing is getting rather long in the tooth sort to speak and like any
new vehicle we will get the warranty that comes with it. So we should have a few years here of very limited
mechanical expenditures for it.

Alderman Klee

Thank you. Chief Rhodes, one of the documents that | was looking at, the proposal and the bid, | was a little
confused when | was looking at it, | even wrote myself a note. | must be misinterpreting it but it talks about that
the item is $691,541.00 and then it says minus $13,000.00 for a trade-in allowance for the 1999 and it comes
up with $650,000.00 my math is different. | don’t come up with $650,000.00 at the bottom line. Is that also
including that $59,000.00 you were talking about?

Chief Rhodes

No that is the bottom line purchase price of the vehicle, $650,000.00. That price they do not reflect it in there
because we are not there yet, of the pre-pay option. That’s where that money doesn’t show up. It shows yes
that we are trading in two vehicles to them and we are going to repurpose the third vehicle.

Alderman Klee

Ok so the $650,000.00 is what we are paying for if we do the pre-pay and the $691,000.00 less the $13,000.00
would be if we didn’t do the pre-pay is that correct?

Chief Rhodes

At the end of the day we are paying $650,000.00 for a vehicle that is worth close to $691,000.00 and change.
Alderman Klee

Thank you.

Alderman Caron

Thank you, | think this is great work that your staff has gone to be able to get this kind of a grant of
$650,000.00. | think this is really good for the City and it just shows that we are looking every place we can to
get money from so kudos to you and your staff Chief.

Chief Rhodes

l’ll pass that on, thank you.

Alderman Caron

You're welcome.

Mayor Donchess

Thank you Chief for saving us this money and improving the Department and thank you for coming tonight.

MOTION CARRIED

Finance Committee - 9/5/2018 Page 6

From: Dan Kooken, Purchasing Manager
Re: FY16 State Homeland Security Grant Program Inflatable Command Post Shelter (Value: $49, 155)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE PURCHASE
FROM ZUMRO AIR SHELTERS USA, LLC, IN THE AMOUNT OF $49,155. SOURCE OF FUNDING IS
DEPARTMENT 156, EMERGENCY MANAGEMENT; HOMELAND SECURITY GRANT

ON THE QUESTION

Mayor Donchess

We have Justin Kates, Emergency Management Director if you haven’t met him. Maybe Justin go ahead and
explain the idea.

Justin Kates, Emergency Management Director

Yes so this is a funded project through the Department of Homeland Security. We received this grant a few
years ago and have been having some challenges with the State who the funding passes through on the
specific model that we were authorized to purchase. But what we were able to agree upon was the model that
is before you this evening, it is an inflatable air shelter that can be set up stand-alone from any of our vehicles
or any of our buildings. This can be used as a command post for a longer term incident, whether it be
requested by the Fire Department, the Police Department, EMS, or any other organization.

It can also be used as a location to set up a medical treatment area for a special event or any sort of location
that doesn’t have some sort of a physical space for us to utilize. We can use that for medical treatment triage

or as an area to keep people warm or cool during extreme heat or extreme cold. So this is no match required
and we hope to start this process off of the purchase as soon as possible to get this thing in service this year.

Alderman O’Brien

Yes Mr. Kates in going over the specs | didn’t really see the size, maybe | didn’t pour over it. But what is the
capacity and the size that we are talking about?

Mr. Kates

| would say the closest thing that you could probably compare it to would be from the one that we are going to
be purchasing, it is probably from this column over to the wall, probably no more than 10 feet tall. Itis an
inflatable system so what it will end up doing is that it comes with a pump so it could be plugged into the wall
and you could inflate it that way or you could use SCBA bottles and attach those and use it to inflate. The time
that it takes to set that area up is no more than 5 or 6 minutes.

Alderman O’Brien

And follow up Mr. Mayor?

Mayor Donchess

Yes.

Alderman O’Brien

Would you not agree that, and I’ve had 15 years as a Deputy Chief, we could immediately set up a command

center in the early stages but when you get to a protracted incident that is going to take days, such as the
flooding we had in one of our neighborhoods several years ago. We were there for several days after. You

Finance Committee - 9/5/2018 Page 7

need a facility such as this to have a long-term command post and something available, and that can be easily
be broken down and reused again, am | correct in assuming all of that?

Mr., Kates

Yes absolutely.
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract for Hotel Market Study (Value: $15,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
PINNACLE ADVISORY GROUP IN THE AMOUNT OF $15,000. FUNDS ARE AVAILABLE IN
DEPARTMENT 183, ECONOMIC DEVELOPMENT; ESCROW FUNDS

ON THE QUESTION

Mayor Donchess

And why doesn’t Mr. Cummings come on up. This is of course Tim Cummings the Economic Development
Director. Would you please explain the objective here?

Tim Cummings, Economic Development Director

Yes Mr. Mayor and through you to the Committee, | am here this evening requesting $15,000.00 which is
money out of an escrowed account for real estate consulting services. The reason why is we have been
interested in developing, in the downtown area, some differing uses. We traditionally see mixed use housing
development in the downtown. We have been recently speaking to a few developers about the concept of a
hotel in the downtown. We received feedback that if we had some due diligence on our end to help provide
some data, we could have a more sophisticated and hopefully positive conversation. This is a consultant that
specializes in doing market studies for hotels, very well respected and is going to look at the downtown area
and help us understand what we can do to better position ourselves for that type of development in the
downtown area.

Mayor Donchess

| would add only that we approved an RFP some years ago to possibly develop the School Street Parking lot
and a hotel is a possibility for that. Right now we have had one hotel developer a little bit interested, but the
feedback we have gotten from people in the business is that if we had a marketing study that showed that this
is a feasible project for this market, particularly with this consultant who is the number one consultant in the
hotel industry, that we would greatly enhance our chances of persuading someone that this would make sense
in Nashua’s downtown. There hasn’t been a hotel built in downtown since at least that is still standing since
the Layton House.

Alderman O’Brien
Don’t forget the Old Tavern.

Mayor Donchess

The Old Tavern but sometime in the mid-18"/19" century so it has been a couple hundred years and maybe it
is time to get another hotel after all that time. That's the thought process. But are there any questions or
comments?

Finance Committee - 9/5/2018 Page 8
Alderman Laws

Well | just wanted to go on record as saying that this is one of those things that really excites me. I’ve said it
before the fact that Nashua downtown is so successful in spite of the fact that it has no hotel is baffling to me
and | think this is a sound investment for the City even if it turns out that it is not a financially viable option, just
to know and then we can move on with further project So thanks for that.

Alderman Harriott-Gathright

Is Park Street Parking lot, that’s the only place that you’ve looked at?

Mr. Cummings

So that is one of the sites. The contract actually scopes out the idea of three differing sites all within the
downtown area. The one site that is articulated is the School Street Parking lot.

Mayor Donchess

But if someone were interested in another site, we would try to make that possible as well. But that is one that
we have identified as a possibility that is City owned as opposed to privately owned.

Alderman O’Brien

Thank you, | just want to say | totally support this particularly where it is a feasibility study and everything
because | look at it, in order to get a great downtown if we are going to look at Nashua, it is going to be the
postcard of Main Street basically and that is our selling point. And as we look at different things that are going
to enhance our downtown, you just don’t do it all at once, it is all an integral puzzle that you piece together all
the different pieces. And this is one of the pieces that will be pieced together that in the future | really do see
that if we are custodians of our duty here as Aldermen to enhance the City to make it thrive, this is one of the
pieces of the puzzle that needs to go in that will enhance the City and make the downtown a very much strong
focal point for all our citizens and our guests as well. Thank you.

Alderwoman Kelly

Thank you. | also want to say that | support this. | think it would be a great move for downtown. | do have a
question about what he will be looking at from a feasibility standpoint. Is he looking at specifically is that site
feasible or is it overall, can the City of Nashua support a hotel downtown.

Mr. Cummings

So she is going to study specifically the market itself and whether the market is feasible and then in particular
look at, based on her experience and expertise in relationships with and in particular it is a certain type of hotel
to be exact. It is what is called a limited select flagged hotel, what is that? That is brands like a Hilton, I’m
sorry, a Marriot Courtyard, a Hilton product of like the Hilton Garden Inn or Embassy Suites. There are specific
types of brands within either the Hilton, the Marriott, the Hyatt chain. So that is a specific category or product
and then knowing that, what type of sites would actually be of interest to those types of brands. For instance,
frontage on Main Street or can it be off of Main Street and how big does it need to be to accommodate the
certain type of room count that is necessary. So those will all be part of the market study that occurs.

Alderwoman Kelly

Thank you.

Finance Committee - 9/5/2018 Page 9
Alderman Laws

Just had to ask, is parking going to be included in this?

Mr. Cummings

Well yes in regards to we know that parking has to be a component but we would like to leverage the current
parking structures if possible for the opportunity to maybe not necessarily need as much land directly for
parking because we can utilize our existing infrastructure.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract for Residential Real Estate Brokerage & Marketing Services (Value: $0)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
BROCKU REALTY GROUP

ON THE QUESTION

Mayor Donchess

Mr. Cummings, do you want to tell them what this is all about?

Mr. Cummings

Yes Mr. Mayor, thank you. So the contract that is before you, | just want to make sure it is clear, it is Brocku
Realty Group which is part of KW Realty Metropolitan which is the broker that the contract actually would be
signed with. Then there is the Realtors that work under the brokerage umbrella of KW Realty Metropolitan.
Why we are doing this is because we have a few surplus residential properties that have needed to be put
back on to the tax rolls. They mainly came about from two different ways; first being the Broad Street Parkway
and as that project is now closing out, there was some takings that occurred later one that have created now
this opportunity for some of those residential properties to actually go back out onto the private market. And
then if this Board recalls, we, about a year ago, took back some property that were delinquent in their taxes so
we are going to try to get these tax taking properties back on the tax rolls. We are looking to get a residential
broker to market and put these opportunities back out on to the market to hopefully get them back paying
taxes. So that is what this contract does and | would appreciate your favorable endorsement of it.

Mayor Donchess

One of these is West Hollis Street.

Mr. Cummings

Correct.

Mayor Donchess

Which we took for taxes, it needs a lot work so we are hoping to be able to sell it to a responsible party and get
the property upgraded. It’s like 44 or 42, | forget the number; 38 %. Anyway, any discussion or questions.

Finance Committee - 9/5/2018 Page 10
Alderman Caron

Thank you Mayor. | just have a question as to why we are doing this when we have over the past 8 years that
I’ve been on the Board we’ve always had Auctioneer do this? | know we’ve sold property from the Broad
Street Parkway that we had left over through that.

And my second part of the question is why are we going outside of the City when we have such great real
estate agents to utilize? Two questions in one, is that ok Mayor?

Mayor Donchess

Yes.
Alderman Caron

Alright, thank you.

Mr. Cummings

So Mr. Mayor and through you to the Committee, first | will answer the latter which is we put this out for an
RFP, we wanted anyone interested in the Marketplace. | specifically reached out to five local realtors in
Nashua, made them aware of this opportunity. | thought we would at least get one, unfortunately we only got
one response and that response happens to be someone out of, works very much in the Nashua area, but has
hung their shingle with a shop out of Bedford, NH. So that stands to that very specific question.

And then relative to why going the direction of a brokerage as opposed to an auctioneer, we could go the
auctioneer route, | think the sentiment was with some of the staff here in the City and in particularly with the
Broad Street Parkway, we have to make sure we obtain and achieve certain values to make sure we are
meeting State and Federal criteria. Because sometimes certain monies were used and we have to make sure
we achieve fair market value. We thought we would have a better opportunity if we had someone out there
actively marketing these properties to try to achieve the highest price possible.

Mayor Donchess

| think, correct me if I’m wrong, Federal DOT has a lot of money in this project, doesn’t like the auction
approach and if we sell these properties for less than the appraised value, they have to be convinced that we
got as much as we could. They are less likely to be convinced at an auction than they are through this
approach. So part of this is to satisfy Federal DOT so they don’t penalize us and say that we didn’t get enough
for a property if it has to be sold for less than the appraisal.

Alderman Caron

Thank you. So are you saying that they weren’t happy with the previous selling of some of that property on
Broad Street?

Mayor Donchess
We've done most of the Federal DOT stuff by broker, haven’t we? No?
Alderman Caron

| don’t know.

Finance Committee - 9/5/2018 Page 11

Mayor Donchess

But they like this approach better, correct?
Alderman Caron

Ok and the other thing is would this be continued constantly or would you do an auction for 38 % West Hollis
Street which is small, how much money are you going to get for the market value for that, because it is in such
tough shape. It’s just a question because we haven't had this before, so | think it is important to understand
why we are shifting from one thing to another. | appreciate that if you went to local real estate agents and
nobody wanted to participate, well that is on them. My concern is that we tried to deal with our local
businesses and | appreciate your comments.

Mayor Donchess

With respect to 38, because the property is in such bad shape, what we really want at least | would say what
we really want is someone who will come in and do a good job rehabbing it, right? And there are certain non-
profits in the area that might be much more responsible owners and rehabbers of a property such as that
rather than someone who is just going to bid the most and then they'll milk it for whatever they can get out of it.
So in that instance, that property, there are others involved, but that one, we want to make sure we Sell to a
buyer of our choice as opposed to necessarily the highest bidder in order to reduce blight and slums in
downtown.

Alderman Caron

| agree, thank you.

Mr. Cummings

So just to echo what the Mayor was saying, the way you can do that and achieve that goal is through a P&S
process, a purchase & sales agreement where you can negotiate some of these terms and have them actually
in a binding contract as opposed to selling as is, whereas, absolute auction type sale where you are then once
we dispose of it, we are then left to whatever actually occurs there. So this gives the municipality more of an
opportunity and the direction of the potential future use of the site.

Mayor Donchess

Now this only authorizes the broker, this does not authorize the sale. So were we to arrive at a purchase price
or whatever with any potential buyer, that would have to come back to the Board of Aldermen for approval. So
all you are approving here is the idea of entering a contract with the broker. We would still have to approve the
sale. Why do you say no?

Mr. Cummings

Mr. Mayor if | may just add that it is my understanding that the Board of Aldermen already acted on a few of the
Broad Street Parkway properties in giving the ability for the City to sell them. So there was already a resolution.

Mayor Donchess

| am more focused on 38 West Hollis Street, at least with respect to 38 West Hollis Street, we would have to
come back and propose how we were going to go forward.

MOTION CARRIED

Finance Committee - 9/5/2018 Page 12

From: Dan Kooken, Purchasing Manager
Re: Contract for Phase 2 of Consulting Regarding Implementation of Fundraising for the
Performing Arts Center (Value: $48,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
FULL CIRCLE CONSULTING IN THE AMOUNT OF $48,000. SOURCE OF FUNDING IS DEPARTMENT
183, ECONOMIC DEVELOPMENT; PAC PROJECT COST

ON THE QUESTION

Mayor Donchess

Yes Mr. Cummings.

Mr. Cummings

Thank you Mr. Mayor. What is before you is the second phase of a two-phased proposal and if this Committee
recalls, | was here earlier in the summer where we introduced Phase | which we are well underway. The
Planning & Economic Development Committee will be getting an update on this project at their end of
September meeting. | will just say very quickly that the feasibility study, that Phase |, should be wrapping up
by mid-September. So this would be so we don’t lose any time, the continuation and making sure that we have
the consultant retained to then execute upon that feasibility study.

It was always understood to be approximately a $75,000.00 type contract and this is just the Phase II at
$48,000.00. | assume | will be getting a question as to where this money is coming from. | want to make sure
everyone understands, this money is coming from the Downtown Improvement Committee funding. They set
this money aside and that is the source of this funding. This project is obviously very near and dear to me and
will be critical for us to be able to move forward with the Performing Arts Center. Thank you.

Mayor Donchess

Discussion or questions?
Alderman Laws

So do you have a progress report? As you know, | sit on the Downtown Improvements Committee so this is
particularly important to me.

Mr. Cummings

So Mr. Mayor if | may, there will be a progress report at the PEDC September 18 meeting. | can tell you that
the feasibility study is well underway, it has been very warmly received; that there have been many meetings
with various stakeholders within the community throughout the summer. The initial feedback that I’ve gotten is
very positive. So we are well on our way, we are on track. | want to leave my comments there for right now. |
don’t want to bias anything here and we are still waiting on actually getting the official report back which is due
mid-September, September 15".

Alderman Laws

| want to reiterate, | think you and | have the same vision when it comes to the Performing Arts Center, | am
excited about that as well. The feedback that | am getting from the community though isn’t as positive as the
feedback that you are getting. People are very concerned, they are not hearing much about it, they don’t know
about the fundraising. So if there is any way | can light a fire under you, get us some information that | can
pass on to constituents, | would really appreciate that.

Finance Committee - 9/5/2018 Page 13

Mayor Donchess

Well you will get a report on the 18"", but | would say this in general, the fundraiser we have knows the Nashua
community very well. | did go the Soup Kitchen Fund Drive as well as others as well as the YMCA, and the
general approach taken by these professionals is that it is much more important to secure large gifts at the
beginning as opposed to going out, you know as much as we would like to have 100 people give $10.00 that
the way to manage a successful campaign is to secure large givers at the beginning and then move out from
there. So | think by taking a methodical, professional, proven approach, even though it takes more time, at
least in the beginning, the interviews are with people and organizations who can potentially give significant,
more than say you or | would probably be capable of. They can most successfully reach the goal.

| think part of the goal of course in addition to private sources who would contribute their own money is the new
market tax credit. We do have a consultant there; that is not a sure thing but it looks very favorable and we
have a separate consultant, this person also has some knowledge of that. We are pursuing that at the same
time. We just don’t want to tell you the results before the fundraiser is here and can kind of go through the
details with more knowledge than what we have. We don’t want to upstage her really, and let her provide you
directly the results of her work. But we think at that time there will be some recommendations as to how to
achieve some major gifts and how to most maximize our chances on the Performing Arts Center and how to
ultimately raise the amount of money we are looking for.

Anybody who wanted to give money right now can just send it to the Nashua Arts Commission and they will
hold small contributions at the present time. But the proven approach towards community fundraising, over
and over and over again, is you secure large gifts at the beginning. And those don’t come like you know, hey
could you give us you know, oh yeah sure, I'll write a check, those don’t come quickly or easy.

Alderman Laws

That makes perfect sense and again | support what is going on. The people | am hearing from are not people
looking to make donations though. They are the people who believe that this is a self-fulfilling prophesy of
electing a new Board of Aldermen, spending $15 million dollars of tax payer money and then nothing coming
out of it. That’s generally where my concern is, | understand September 18", seems like Christmas to me, |
am excited about it.

Mayor Donchess

Well Christmas in September? We will have it.
Alderman Caron

Yes thank you. | have to agree with Alderman Laws. | sat on the Board when we brought that legislation in and
that part of it was that $4 million dollars had to be in place before we would put any money down from that
bond to that facility. And believe me, | have been part of Performing Arts Centers for 30 some odd years and
so that is their concern, because the clock is ticking. Granted, you don’t want to give us all that information
until September 18", but that is the question that keeps coming up is are we going to pursue this even though
we don’t have that money. Because if we don’t have first $ 4 million dollars, are you ever going to have that
money that is going to sustain it or are we going to end up like we did before and have an issue that the City
has to carry the burden forever. And | don’t think that is what the City should be doing; they need to work in
partnership. | understand you are bringing consultants in and that’s a good thing if they are raising that money
but that is the question that | keep hearing, where is that $4 million dollars before you approve that final bond
issue. So | think it is important for you to understand that and for the public to know that people who sit in this
horseshoe are concerned as well. Thank you.