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Finance Committee - 04/15/2020 Page 12

Some of our concrete pipe is in pretty bad shape so that is what we are focusing on. But Kenyon, as | said, is doing most
of the lining but we are looking at a lot more pipes with our other inspection crews as well. So we are looking at a lot of
pipe, but you know in the last ... this will be about 10 more miles of line and last year we did about 9. So overall, we are, |
would say we are doing pretty well comparatively.

Alderwoman Kelly

Can | ask a follow up please?

Mayor Donchess

Yes, of course.
Alderwoman Kelly
So you said you did 9 miles last year, 10 miles this year, are you anticipating another 10 miles the following year?

Dan Hudson, City Engineer

Yeah probably, | mean of course it depends a lot on what we sign, but we have been looking at the downtown area
prioritizing that area. As we get further away from downtown, sewers are newer, you are going to see more PVC sewer
and we wouldn’t expect to find nearly the amount of problems with those as we have with you know, hundred-year-old
concrete pipes. So next year | expect we will be requesting additional inspection work and lining work. But! can’t, you
know, | can’t know exactly what the long-term scope of this is.

The benefit of this program it is right now is we look at it and if we find something that needs to be lined, this contract has
lining included so we can quickly move and line the pipe before it becomes a problem. So we are able to be responsive
and cover a lot of ground with this contract so we feel this is money very well spent; prudent in the long-term, cost interest
in the City. So that’s why we are recommending that the work continue.

Alderwoman Kelly

Yeah, | agree with you 100% and | think it is work that needs to get done. Mr. Mayor | am sort of thinking about like the
paving program where we planned out a number of years with different milestones each year that we are trying to hit.
Would it give us any cost savings or any benefit of potential planning if we were to approach this this way instead of year
by year, just kind of adding on another 10 miles.

Mayor Donchess

| do see there is one difference with the paving or maybe more but the paving the condition is apparent. With an
inspection of all streets in Nashua (inaudible) cataloged the paving condition index with respect to every street and that’s
an ongoing process that a renewed evaluation that is done periodically and that’s what you use to decide how to pave.
But really it is somewhat of a year by year process because tentative lists of paving can change based upon new
inspection of streets. Sometimes streets deteriorate more quickly than others.

In this situation, the condition of the pipes (inaudible) inspection is part of the contract. It is a much more laborious
process with cameras and trying to (inaudible). It’s yard by yard really, right? (inaudible) a City Engineer so the City
Engineer may be able to correct me or elaborate on that.

Dan Hudson, City Engineer

Thank you, Mr. Mayor, | agree, | mean | don’t have a level of comfort until we have looked in the pipes and some of these
pipes haven't been looked at in a long time or never. So this is a good program, let’s see what we have. We actually
haven’t been doing it at this level years and years ago but | don’t think that was, you know, it is a good time to do it and
things are going well and we want to continue it because the better we can plan our long-term work. And some of that,
you know, some of that will be digging and we will need to plan that out over time if we can as well. We are trying to get
ahead of it, meaning be proactive, not be reactionary to these things. So yeah. | think like you said, you can’t see inside
the pipe until you go look inside the pipe. We are looking at every section of road at least once every three years and of
course people are driving on them every day too. So maybe we are playing catchup on getting our inventory identified but

Finance Committee - 04/15/2020 Page 13

this is something that is good to do and we would like to continue at this level until we get the core of the downtown at
least looked at.

Alderwoman Kelly

Thank you.

Mayor Donchess

Further discussion. Would the Clerk please call the roll?
A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman Laws, Alderman O’Brien, Mayor Donchess 7

Nay: 0

MOTION CARRIED

From: Dan Kooken, Purchasing Manager

Re: Purchase of Replacement Warehouse Box Truck (Value $45,728) Department: 181 Community Development;
Fund: Trust, Activity: CERF

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND AUTHORIZE THE

PURCHASE OF RECPLACEMENT WAREHOUSE BOX TRUCK IN THE AMOUNT OF $45,728 TO GRAPPONE FORD.

FUNDS ARE AVAILABLE IN DEPARTMENT: 181 COMMUNITY DEVELOPMENT; FUND: TRUST, ACTIVITY: CERF,

BY ROLL CALL

ON THE QUESTION

Alderman Klee

| have a question Mr. Mayor. | am having a hard time hearing you.

Mayor Donchess

Can you hear me now?

Alderman Klee

Yes, | can. | have a question on this. | see that there are 2 vehicles that are going to be — and my question will be the

same for both. What do we do with the older ones? | was trying to look through it and | didn’t see ... | Know a lot of times

we put them up to auction but | didn’t know if we would be reusing these, if they were going up to auction. | don’t know if |
was just missing it but | tried looking a few times.

Mayor Donchess

Now is Ms. Marchant on here?

Sarah Marchant, Community Development Division Director
Yes, this isn’t mine.

Mayor Donchess

This is a mistake; the Agenda is wrong. So this says these are Community Development Vehicles, but these are really in
the Parks Department, excuse me, in the School Department, sorry. So is Shaun on here? It says Community
Development but it is really schools, right?

Finance Committee - 04/15/2020 Page 14

Shawn Smith, Plant Operations Director (School Department)
Yes for both of them.

Mayor Donchess

| don’t know why this says Community Development. But this is Shaun Smith, he doesn’t often come before us, but he is
the head of Grounds & Maintenance for the School Department.

Shawn Smith, Plant Operations Director (School Department)

This is my maiden voyage on this sort of platform so bear with me.

Mayor Donchess

So could you fill us in on what is going to happen with the vehicles that are being replaced?

Shawn Smith, Plant Operations Director (School Department)

Yes so, we have done two things, typically when | first replace vehicles they go into my stand-by fleet and | use those for
when a regular trades or grounds vehicle needs to go into the shop for any sort of repair. | also use them in the
summertime when our ranks swell and we bring on summer grounds personnel. But at any one time, | have two vehicles
typically sitting on the side that have been replaced with new vehicles. So what is going to happen this time, is those two

vehicles | have currently have sitting on the sideline will either go in as part of a trade to reduce the cost or go to Mr.
Kooken. A couple weeks ago he suggested that we go with the City Auction, which | am certainly willing to do.

Mayor Donchess

So the answer is the current replacement vehicles will either be traded in or auctioned to either reduce the purchase price
or bring in some funds, correct

Shawn Smith, Plant Operations Director (School Department)

That’s correct.

Alderman Klee

So Mr. Mayor, may | have a follow up then? So you said that they would go in as a possible trade-in or we would do the

auction. If we did the auction obviously it would be after we purchase this. So if we did the auction, would that money go
into revenue, would that come back to the CERF Funds, how would that be handled? If we didn’t do it as a trade-in.

Mayor Donchess

Good question. | think that it would actually come to the General Fund. It could be redirected into CERF if the Board of
Aldermen voted that way, but otherwise it would go into the General Fund.

Alderman Klee
That's fine, thank you.

Mayor Donchess

Any other questions or comments? Now we are on still the first one, the warehouse box truck. Is there any other
discussion? Would the Clerk please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderwoman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman Laws, Alderman O’Brien, Mayor Donchess 7

Finance Committee - 04/15/2020 Page 15

Nay: 0

MOTION CARRIED

From: Dan Kooken, Purchasing Manager

Re: Purchase of Replacement Grounds Maintenance Vehicle (Value $46,039), Department: 181 Community
Development; Fund: Trust, Activity: CERF

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND AUTHORIZE THE

PURCHASE OF REPLACEMENT GROUNDS MAINTENANCE VEHICLE IN THE AMOUNT OF $46,039 TO

GRAPPONE FORD. FUND ARE AVAILABLE IN DEPARTMENT: 181 COMMUNITY DEVELOPMENT; FUND: TRUST,

ACTIVITY: CERF, BY ROLL CALL

ON THE QUESTION

Mayor Donchess

So Community Development on this one is also wrong, this another school Department vehicle which Mr. Smith already
... but are there any other questions or comments? Could you please call the roll?

Alderwoman Lu

| do have a question, I’m sorry. Thank you. Isn’t the reference to Community Development in that reading simply stating
that the funds are available in Community Development? OK | misunderstood. Alright.

Mayor Donchess

| think it is a mistake because the funds are coming from the Capital Equipment Reserve Fund and these are clearly
School Department vehicles. So | don’t know, | think there was just an error in the Agenda as it was prepared.

Alderwoman Lu
Ok thank you.

Mayor Donchess

So we are talking about money coming from CERF, Capital Equipment Reserve Fund to purchase this School Department
Grounds Maintenance Vehicle. Any other discussion or questions? Could you please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman Laws, Alderman O’Brien, Mayor Donchess 7

Nay: 0

MOTION CARRIED

From: Dan Kooken, Purchasing Manager

Re: Contract with Caterpillar for Certified Rebuild for Compactor #52 (Value: Not-To-Exceed $500,000),
Department: 168 Solid Waste; Fund: Solid Waste

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND APPROVE THE CONTRACT

WITH CATERPILLAR FOR CERTIFIED REBUILD FOR COMPACTOR #52 IN A NOT-TO-EXCEED AMOUNT OF

$500,000 TO MILTON CAT. FUNDS ARE AVAILABLE IN DEPARTMENT:

168 SOLID WASTE; FUND: SOLID WASTE, BY ROLL CALL

ON THE QUESTION

Finance Committee - 04/15/2020 Page 16

Mayor Donchess

For our landfill, Superintendent is here.

Jeff Lafleur, Superintendent of Solid Waste

Yes Mayor, thank you so much. This is for the rebuild of our compactor, our 1999 compactor. It is no longer in service.
Right now we are using our dozer as a back-up. The back-up dozer is not heavy enough to compact trash the way we like
to or we need to. So this $500,000.00 will completely strip the 1999 compactor right down to the frame, repaint it, put in
all new parts and pieces and give us a four-year warranty on it.

Mayor Donchess
As | recall in our discussion, the rebuild compactor is as good as a new one. A new one would cost $1 million dollars.
Jeff Lafleur, Superintendent of Solid Waste

That is correct and it seems like we get even a better warranty on it. A new compactor we would only get a three-year
warranty. With this rebuild, we’d be getting a four-year warranty.

Mayor Donchess

What this thing does is clamps down the trash as you bring in every day.
Jeff Lafleur, Superintendent of Solid Waste

Exactly, it is the big steel-wheeled loader that we have.

Mayor Donchess

Any questions or comments? If not, could you please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman Laws, Alderman O’Brien, Mayor Donchess 7

Nay: 0
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract for (Value $1,271,700) Department: 170 Hydroelectric Operations; Funds: Bond

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND AWARD THE CONTRACT
FOR TURBINE REPLACEMENT AT JACKSON FALLS IN THE AMOUNT OF $1,271,700 TO MAVEL AMERICAS, INC.
FUNDS ARE AVAILABLE IN DEPARTMENT 170 HYDROELECTRIC OPERATIONS; FUNDS: BOND, BY ROLL CALL

ON THE QUESTION
Sarah Marchant, Community Development Director

Good evening, thank you all. So this is a project we’ve been before you several times with. Deb is here with me too if we
have more complicated questions that | can’t answer off the top of my head. But last June we were here before you for
the Bond Approval for Hydroelectric Facilities which included the rebuild of the Jackson Turbine. It also included funds for
the relicensing process of Mine Falls which we are well underway with. So this contract to rebuild Jackson Falls, this is
one of the three parts that go along with this. We were before you in January to bring on Turner Construction who is our
Construction Engineering Firm. This contract with Mavel is for the actual widget, the giant widget of the new turbine. It
was a long process with amazing help for Risk and Legal and Turner and certainly all of our efforts to get us here it is a bit
of a different kind of widget than we normally buy. But we are very much looking forward to this product, it is the best from

Finance Committee - 04/15/2020 Page 17

our RFP Process and it will be the best fit for us overall. It is a long process from approving a contract to getting a product
in the facility and so we really need to get moving on this. I’d be happy to answer any questions that you have.

Mayor Donchess

Questions or comments?

Alderman O’Brien

Alderman Mike O’Brien Mayor, can | ask a question?

Mayor Donchess

Of course.

Alderman O’Brien

Throw it out to the both of you, while we are doing this particular work at over $1 million dollars, we will still — it seems to
me unfortunately at the 1-megawatt capacity. And is that the top, because | am really hoping at the State Leve if we can
get that together, that we could do better than current 1 megawatt standing. And | just want to know if changing the
turbine, the propeller, you Know go to this or versus another type of thing. Would that increase the flow rate and would
this be the time to do that in anticipation? Because we are going to solve the problem at the State Level to increase our
megawatt capacity. Can you just speak on that, please?

Sarah Marchant, Community Development Director

I can. So this facility, one of the really critical things that saves us a lot of money and headache is this facility does not
have to be licensed. So we have to replace this turbine in-line with the current approvals that we have. If we go beyond
what we have, then we would have to go and apply for a licensing process like we are doing at Mines Falls which is a
many, potentially millions of dollars of work and licensing that has to be re-done every 30 years and opens us up to very
expensive studies and processes. So we are maximizing everything we can but we are staying within the limits of our
non-license on this facility at this time. The Mine Falls Dam we are greatly forward to taking advantage of the
improvements that will be coming from the State as you spoke about. But as a one megawatt we are enjoying that
metering at that facility right now.

Alderman O’Brien

Thank you for your answer.

Mayor Donchess

Any other questions or comments? Alright, will you please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman Laws, Alderman O’Brien, Mayor Donchess 7

Nay: 0
MOTION CARRIED

Mayor Donchess

That concludes our communications. Unfinished business we have none. And thank you everybody for participating and
coming to the meeting. The Alder people are not through yet but | think everybody else is, so thank you very much.

UNFINISHED BUSINESS — None

NEW BUSINESS — RESOLUTIONS - None

w MELANSON

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

e Obtain an understanding of internal control relevant to the audit in order to design 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. However, we
will communicate to you in writing concerning any significant deficiencies or material
weaknesses in internal control relevant to the audit of the financial statements that we
have identified during the audit.

e Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

e Conclude, based on the audit evidence obtained, whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to
continue as a going concern for a reasonable period of time.

Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, an unavoidable risk that some material misstatements or noncompliance may not be
detected exists, even though the audit is properly planned and performed in accordance with U.S.
GAAS and Government Auditing Standards of the Comptroller General of the United States of
America. Please note that the determination of abuse is subjective and Government Auditing
Standards does not require auditors to detect abuse.

Our responsibility as auditors is limited to the period covered by our audit and does not extend
to any other periods.

Compliance with Laws and Regulations

As previously discussed, part of obtaining reasonable assurance about whether the basic financial
statements are free of material misstatement, we will perform tests of the City’s compliance with
the provisions of applicable laws, regulations, contracts, and agreements. However, the objective
of our audit will not be to provide an opinion on overall compliance and we will not express such
an opinion.

800.282.2440 | melansoncpas.com

Finance Committee - 04/15/2020 Page 18

RECORD OF EXPENDITURES

MOTION BY ALDERMAN HARRIOT-GATHRIGHT THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE
CITY CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES FOR THE PERIOD FROM
MARCH 27, 2020 TO APRIL 9, 2020, BY ROLL CALL

ON THE QUESTION

Alderwoman Lu

| have a couple of questions about that.

Mayor Donchess

Go ahead.

Alderwoman Lu

Thank you. General Fund under Financial Services, are several charges to revenue funds, motor vehicle revenue funds

and | wondered if anybody there has the or can look at Page #4 in the most recent week and just help me understand
that.

Mayor Donchess

How large is the check? What is the amount?

Alderwoman Lu

Well together they are about $3,000.00. There’s about 12 of them.
Mayor Donchess

| don’t think Mr. Fredette is here or Mr. Griffin, are you?

John Griffin, CFO

Mayor, can you hear me?
Mayor Donchess
Yeah this is Mr. Griffin, the CFO.

John Griffin, CFO

Yeah that question has come up before, Alderwoman Lu, that’s probably refund checks. But we can definitely get you the
specifics of these 12 items.

Alderwoman Lu

Oh that makes sense, right motor vehicle. Thank you. Can | ask another question? Do we do all of our own
snowplowing with City workers?

John Griffin, CFO

No.
Alderwoman Lu

No, oh we hire out also?

Finance Committee - 04/15/2020 Page 19

Mayor Donchess

It is a combination of City Workers, but also we have contract plowers.
Alderwoman Lu

| see.

Mayor Donchess

The Streets and the Parking Lots are also plowed via contract.
Alderwoman Lu

| see, OK. | was just curious about a payment to rent school, for the schools to rent them. | just didn’t know that. If we use
the schools, we pay rent?

Mayor Donchess

If the City uses a School for a City Meeting or anything else, we do not have to pay rent. But if a private party wants to
use a School Building for some reason, which occasionally does happen, they do pay a rental fee. Because the City
doesn't pay for the use of a School Building.

Alderwoman Lu

But why would it appear in the record of expenditures?

Mayor Donchess

What page?

Alderwoman Lu

Page #17. It’s Elite Performance Challenge and Spirit of Dance Performance?

Mayor Donchess

Who is the check written to?

Alderwoman Lu

Oh well | think it is Elite Performance Challenge.

Mayor Donchess

This is a School Department issue so we would have to check into this, which we would be glad to do. Mr. Griffin can talk
to the School Department and find out exactly what that is.

Alderwoman Lu

Oh that’s fine, it just didn’t seem logical to me.

Mayor Donchess

Mr. Griffin, you probably don’t know exactly what that check is, do you?

John Griffin, CFO

No but we can certainly check into it and provide it for the Members of the Committee. So is that on Page 17.

Finance Committee - 04/15/2020 Page 20

Alderwoman Lu

Let me see, | think | already turned the page, just one second.
Mayor Donchess

It was Page 17.

Alderwoman Lu

Yes.

Mayor Donchess

We can definitely check into that and get back to you.
Alderwoman Lu

Ok | just have | think one more question. In the expenditures from the previous period, there’s a $12.000.00 charge and it
is to an asset account and that just kind of confused me to see. | thought all of the accounts would be expenses.

Mayor Donchess

This is not the current record of expenditures? It is the previous one?

Alderwoman Lu

Correct.

Mayor Donchess

Do you have what page on the previous one it was?

Alderwoman Lu

Page 1.

Mayor Donchess

What is the item?

Alderwoman Lu

It’s the first one. It’s the very first item. It says the account is overlay, prior year asset, no prior year, not prior year asset.
Mayor Donchess

What the overlay is, is that is a reserve account that is used to resolve tax abatement cases.
Alderwoman Lu

Oh OK.

Mayor Donchess

There is always a discussion or a negotiation that takes place. Sometimes a lawsuit. But let’s just suggest in this case
there’s a settlement and the taxes for a year or more are reduced or the assessment is reduced pursuant to the appeal,
then the taxes that were paid by the tax payer on the higher assessment get refunded down to the level of the new
assessment. So if the taxpayer says they want to appeal their assessment, that’s called “Apply for an abatement” they
still have to pay the taxes that are billed to them. Then, if they are successful either in settling the case to resolve the