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Finance Committee - 4/4/2018 Page 7

the present? For GM Pension, they might go out business, there might come a day when they have to pay
everything with nothing else coming in. That’s very unlikely if the United States continues as a country that is
very unlikely ever to occur, that New Hampshire would go out of existence or something like that. And if you
ask them, it’s not like they have nothing in the bank. They have $7.5 billion dollars. | think it is correct to say
that they have enough with no further contribution to pay about 10 years of benefits. So even if no one ever
paid anything else in, they could still carry on for 10 years. So that just shows you, it’s not like they are near
the edge or something like that.

When this requires such a severe sacrifice, nearly 10% of the City Budget is going into this, we are paying
higher taxes, we are giving up improvements in education and other services as well all to meet this goal of
100% when we know as a fact the day is never going to come when they really need to pay out all the benefits
because there always be more money coming in. Having been at the legislature a number of times on this and
some bills combined with the State’s decision that they are no longer to meet their obligation to pay 35% of
municipal pension costs, it’s very frustrating to try and deal with the issue. The legislators who are mostly in
control with the committee heads, David Hess’ committee, | forget what the name of the committee is right
now, but they are not that sympathetic to the municipal plight. They are mostly focused on this 100% goal,
kind of an abstraction really.

In fairness to them there is pressure from the financial industry, these accounting standards, the rating
agencies, to move to 100%. So they are under pressure but still for those who pay the bills, it's not a
comfortable situation.

Alderman O’Brien

Thank you Mr. Mayor. Mr. Mayor, | first would like to say | think you gave a very fair and accurate description
of what is going on. But my question is, just making us going to 2039 at 100% the wizards of Concord also cut
back on a lot of benefits, so newer people that are into the pension system aren’t getting the same benefits.
Nashua has a fairly good attrition rate as people have their careers and move on. Can we see something in
the future, some relief because of those changes or what they enacted up in Concord probably will give us no
relief at all.

Mr. McIntire

That’s a tough question for me to answer and | can see Mr. Alderman you are on Page 130, that for the
fluctuation from June 30, 2016 where the percent being funded is down to 58% is remembering that is
measured as of June 30, 2016. It is widely expected and | think the report just came out a couple of weeks
ago what your liability will be in June 2018. | suspect, given investment returns, that percentage comes back
up again. As the independent auditor to opine on whether or not your financial statements are in according
with Generally Accepted Accounting Principles | usually stay away from — thank you — you look like you might
be in agreement with me being ok.

Alderman O’Brien
| think | understand sir. Thank you.

Mayor Donchess

And they did reduce, there’s a two tier benefit program for City employees, particularly in Group 2. People
after a certain date, 2010 or something around then, they do not have the same level of pension benefits as
those already in the system.

Finance Committee - 4/4/2018 Page 8
Alderman O’Brien

And if | may Mr. Mayor, to me it is a dangerous situation where eventually you are going to be last person
receiving the old style benefit and then you have a whole bunch of people who basically had a lot taken away
from them. It’s going to be difficult as it goes on into the future.

Alderwoman Kelly

Yes | was wondering if you could just go over quickly on Page 38 where you talked about the issue of bonds
and then also the repayment. How are we doing as a City? How do we compare to other cities?

Mr. McIntire

Just before | address that question, Page 38, | talked a little about how there is really two perspectives of
accounting in here. There is long-term perspective or the full accrual basis of accounting and short-term
perspective which is modified accrual or essentially cash. On Page 38 in basic terms reconciles the two
different income statements or Statements of Revenues & Expenditures. The question here talks about
repayment of debt and how it deals with new issues as well. About a third of the way down the page you start
seeing some numbers in the millions. And | have on my notes here a couple of numbers circles. About a third
of the way down, Issuance of General Obligations Bonds and it’s in parenthesis, of $12.3 million dollars. Very
simply, in Fiscal Year 2017 you issued $12.3 in new general obligation bonds. Two rows below that you have
the repayment of debt. Debt issuances that go back some point in the past you are paying back $15.5 or you
paid back $15.5 during Fiscal Year 17. Very simply, you are paying off more debt in 2017 than you took on.

Another way to look at this and | realize that this wasn’t part of the question, but the third number down from
the top on this page is your depreciation expense. How much did the assets that in all likelihood were acquired
by issuing bonds, those assets depreciated at about $16.5 million dollar and again referencing back to the
repayment of debt, slightly further down the page of $15.5. You see a nice relationship there, certainly there is
approximately $1 million dollar difference, but | have seen in other statements where the assets are
depreciating at a much faster rate than they are actually being paid off. There is some nice balance here that
you see on this page.

Now comparing it with other communities, that is extraordinarily difficult because communities are of all shapes
and sizes. A comment that | might add that hopefully might address some of your question deals with how
rapid communities pay off their debt. And again, this disclosure in here on that somewhere in the footnotes
and in general credit rating agencies will look at how much you have but more importantly how much of that
debt are you paying off in the next 10 years. | don’t have that number at my fingertips but | think you are quite
high, | think you are in the 70% to 74% in being paid off in 10 years. That | think would be viewed from a credit
rating agency standpoint as a rapid payout of your long-term bonds payable.

Alderwoman Kelly

Thank you very much.

Mayor Donchess

Are there any other questions?

Alderman Klee

I’m not sure if you can answer this but going back to Page 130 when we were talking about the 100% funding
of the pension plan and so on — | know that the State wants to do 100% for whatever the reasons are, for good

credit ratings and so. But what would be common for most businesses or municipalities or States? Is it like
85% or 90%, what would be good practice?

Finance Committee - 4/4/2018 Page 9
Mr. McIntire

They really run the gamut. For example and | am not trying to avoid your question, in New Hampshire virtually
all are involved in the one state system and you see the numbers on Page 130. Our firm does some work in
Massachusetts where probably one-third of the communities have their own pension plan. We have done
some work in Vermont where they have their own plans. A lot of it quite frankly depends upon the
demographics of certain communities. Some of those plans in Massachusetts are 88% to 94% funded. |
actually have one that is scheduled to be fully funded in about 3 years. There are other plans that we audit
with some of our Massachusetts communities that are below the percentage that you see on Page 130. There
really is a wide variation.

Mayor Donchess

The City does operate a single pension fund for Public Works. Public Works employees are the only
employees in Nashua that are not in the State System. We have a pension board, the last | learned, it’s in the
mid-80s% - the percentage of the liabilities that are funded was in the mid-80%s. There might have been a
little bit of a change, but obviously it’s in good shape as compared with this.

Alderman Klee

The question | am looking for is for credit rating, obviously 100% is going to give you a great credit rating, but
to maintain a good credit rating, that’s what I’m looking for. What are they looking for? Are they looking for an
80%, 85%? Obviously they are, for the most, they are not going to look for 45% for the credit rating.

Mr. McIntire

They probably are going to look as your unassigned fund balance and they are going to look at the
demographics of the community. Of course, the Net Pension Liability is going to come into play but that’s
going to be down on their check list of the things they are going to look at it. They are going to look at
management; they are going to look at policies and procedures that you have. If your unassigned fund
balance represented 10.8% of your expenditures, if that was fluctuating greatly, up one year, way down the
next back up a little bit. Those things probably even if it was one year got up to almost 11% but in the past it
fluctuated tremendously, that probably would not be viewed favorably. Remember that key unassigned fund
balance number didn’t really change and it’s been quite steady for a couple of years. I’m trying to focus in that
there is undoubtable a rating agency that will look at that pension liability but | truly think they are going to
focus on the unassigned fund balance and the other characteristics of the community.

Alderman Klee

Thank you. My concern was that | didn’t want to lose our good standing.

Mr. McIntire

The question and hopefully my answer contributes to what | said earlier as far as making sure | put it in
context. We think there we would be remiss if we didn’t talk about it because it is a significant liability. But |
think there are some factors that like me answering your question about rating agencies are more going to
focus on unassigned fund balance. Hopefully that puts it in perspective a little bit.

Alderman Klee

It does, thank you.

Mayor Donchess

Any other questions or comments?

Finance Committee - 4/4/2018 Page 10

Alderman O’Brien

Yes thank you Mr. Mayor. | just want to say that as the liaison to the BPW pension board you are again pretty
accurate. We are in the mid-80’s in the funding and everything is going well with that, we have a great Board
as Mr. Griffin can say. We mostly work with Mr. Fredette, what is the company? But they are great advisors
and we meet monthly and we are meeting all the obligations. So it’s going very good on that end.

Mayor Donchess

They should have hired Alderman O’Brien to run the State system, we’d probably be better off.
Alderman O’Brien

| am content right where | am right now.

Mayor Donchess

If they had done that 20 years ago, maybe we'd be in better shape. Any other questions? Well thank you very
much for your presentation. As usual, a very good job.

COMMUNICATIONS

From: John L. Griffin, CFO/Comptroller
Re: Independent Auditors Presentation — April 4, 2018

There being no objection, Mayor Donchess accepted the communication and placed it on file.

From: Dan Kooken, Purchasing Manager
Re: NPD Purchase of Lenco Bearcat (Value: $301,309)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE PURCHASE
FROM LENCO ARMORED VEHICLES IN THE AMOUNT OF $301,309. FUNDS ARE AVAILABLE IN
DEPARTMENT 150 POLICE; CERF

ON THE QUESTION

Mayor Donchess

It would be helpful if you would introduce yourself to the committee and then just tell us a little bit about what
this purchase is.

Captain Eric Nordengren

Good evening Mr. Mayor, my name is Eric Nordengren and | am a Captain of the Nashua Police Department.
So this purchase is to replace our current Bearcat. Our current Bearcat is a 2003 vehicle and was the 6" ever
produced, it’s the first actually in New Hampshire. And with any type of mechanical or any type of vehicle we
are starting to experience on-going mechanical issues with it and being the purpose that it is intended for, it
obviously is becoming an issue as far as the reliability. Ve need that vehicle to be reliable obviously at all
times for the nature of what it is going to be asked to do; responding to critical incidents, any type of problem
that is going on in the City that requires a strong Police presence or SWAT Team response. The Bearcat is a
vehicle that we really rely on very heavily and that runs a gamut of warrant service to large venue protection is
now something what we use it for.

Finance Committee - 4/4/2018 Page 11

In the past year or so, starting in December 2016 there have been four incidents when the vehicle has failed, it
has simply broken down. One of the more recent being in October of 2017 for a barricade incident here in the
City, perhaps you remember seeing Manchester’s Bearcat on the page of the paper. That was because ours
simply broke down. Also in July we were doing some work at the 4!" of July Fireworks, again large venue
protection type of a detail and it broke down there too. We actually had to have it towed in from the venue. So
an on-going issue and just strategically it is very clear to us at the Department that it is time to try to move
forward and purchase a new vehicle.

Mayor Donchess

Any questions?

Alderman O’Brien

Thank you Mr. Mayor. Looking at the old one, the 2003, was that one a diesel?
Captain Nordengren

Yes.

Alderman O’Brien

| Know you are purchasing a diesel now. And is this vehicle, will it be garaged?
Captain Nordengren

It is garaged currently.

Alderman O’Brien

It is garaged, ok, because looking at the 2003 | see the mileage on it and | think if garaging with the New

England weather | think hopefully it will get better longevity out of them. But think it is definitely something for
the safety of the officers for sure is needed.

Captain Nordengren

And it is an officer safety issue but it is also for safety of the citizens because that’s what it is primarily
designed for, is for any type of critical incident like active shooter incident, which is obviously it’s a large
concern today. If you look at any type of photograph or video of any of the recent incidents whether it’s rural
Colorado, Las Vegas, Dallas, the Pulse Nightclub in Orlando, Florida, you will see a Bearcat at some point in
those incidents and helping to resolve the situation. Again that’s protecting the citizens but it is keeping the
officers safe as well. The mileage on our vehicle is obviously very low but this is a vehicle that will drive to an
incident here within the City and then maybe be idling there for a number of hours, you know, 10, 12, 24 hours.
So that’s where the wear and tear really starts to come in on the vehicle.

Alderman Laws

| called Lenco today just to talk to him today and they are very excited about the technological advances in the
one that you are getting over the one that we have. My concern would be, as you pointed out, the mileage is
low , I’m sure the hours were very high. What happens when the new one breaks? Do we fix it in house or do
we sent it back to them?

City of Nashua

Purchasing Department
Administrative Services Division (603) 589-3330
229 Main Street - Nashua, NH 03060 Fax (603) 594-3233

August 11, 2022
Memo #23-322

TO: Mayor Donchess
Finance Committee

SUBJECT: Playground Equipment for St. Andrews Park in the amount not to exceed $108,582.47
funded from 71625 Playground Equipment/Bond and 2062.77.17.30/Citywide
Playground Improvements

Please see attached communications from Bryan Conant, Superintendent of Parks & Recreation, dated July
28, 2022 for project specific details related to this purchase. Below please find a summary of the purchase
approval request:

Item: Playground structure and playground equipment for St. Andrews Park
Value: $108,582.47
Vendor: Miracle Recreation Equioment Company

Department: 177 Parks and Recreation
Source Fund: 71625 Playground Equipment/ Bond $75,000
2062.77.17.30/Citywide Playground Improvements $33,582.47

Ordinance: Pursuant to § 5-84 Special purchase procedures A/(3) Purchases which can be procured
through cooperative intergovernmental purchase agreements with other governmental jurisdictions.

The Board of Public Works (7/28/22 BPW meeting), Division of Public Works: Parks and Recreation, and
the Purchasing Department respectfully request your approval of this contract.

Regards,

Amy Girard

Purchasing Manager

Ce: B Conant
C O'Connor
K Kleiner

Finance Committee - 4/4/2018 Page 12

Captain Nordengren

Typically that will become a warranty issue as well. We have mechanics in-house that do some of the work on
ours. It would depend on exactly what goes wrong with it. If it's some type of equipment that we have on it as
far as infrared, it would go to Lenco. If it’s an engine issue it may go back, | believe these are Ford vehicles
still, it might go to the Ford dealership nearby or it might be something that our own mechanics at the
Department could fix as well.

Alderman Laws

| saw the warranty and it only covers three years and | imagine, | am hopeful that this will be the Police force
for 100 years. Thank you.

Mayor Donchess

Does anyone else have questions? All in favor?

MOTION CARRIED

Mayor Donchess

Mr. Vayo should come up, you are here for that?

From: Dan Kooken, Purchasing Manager
Re: Purchase of Fabrication and Delivery of Signs for Wayfinding Sign Package (Value: $208,958)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE PURCHASE TO
L&H SIGN COMPANY, INC. IN THE AMOUNT OF $208,958. SOURCE OF FUNDING
IS DEPARTMENT 183, ECONOMIC DEVELOPMENT; CAPITAL IMPROVEMENTS

ON THE QUESTION

James Vayo

Thank you for having me today. | will just give a quick synopsis of what is before you. The Economic
Development Division has been negotiating with L&H Signs for a contract for the fabrication of 78 signs for
Downtown Nashua Wayfinding. The signs are the result of over a year and a half to two year process which
Economic Development identified a need for an update of the existing Wayfinding signs followed by an RFP for
a designer/engineer to design a sign package which wrapped up the Summer of 2017 and then finally a bid
process in which fabrication installation quotes were received. Before you is basically a negotiated bid
package and a final contract. The signs will be used to basically replace what you may have seen downtown
in different locations as the Great American Downtown signs. They were built in 2004 and they are made of
aluminum and are covered with some kind of durable paint and they have just basically reached the end of
their life, they are oxidized, the paint is peeling off, in many locations the signs have been removed.

The new sign package will essentially help people from the arterial roads find parking in downtown and once
they park find civic destinations in and around Main Street such as the library, City Hall, parks, etc. Over this
summer and into next summer DPW will be taking on the responsibility for installing a portion of those signs
and we will be going back out to procure installation of the remaining signs as the time line carries on. That’s
in a nutshell the project before you.

Mayor Donchess

Questions or discussion?

Finance Committee - 4/4/2018 Page 13

Alderwoman Kelly

| Know you mentioned the durability of the last round of signs, what are we doing to make sure that the new
signs are going to be around for a lot longer?

Mr. Vayo

That’s a great question. The technology over the last 12 years has changed significantly. The original signs
were lettered and painted with machine so they would be spray painted on an aluminum base and then
assembled on the site. The new signs use a 3M technology that is used for many new roadway signs. It is
basically a highly reflective geometric sheet of vinyl that is sticky on the back and it gets mounted on to a sheet
of aluminum. The front side of it receives paint or ink from like an inkjet printer kind-of-style machine that is
very wide and can print very large signs.

What will happen is that the fabricator will print out the sign package based on the sign package that was put
together by Greenman Pedersen and they will mount them to aluminum sheets and then pair them up with the
appropriate pole type to mount it to the ground once they are shipped to Nashua. Something that is kind of
cool and unique about the signs today that didn’t exist in old signs is that when a car is driving towards it at
night or after twilight, the sign will emblazon it will light up from the reflectivity of the material which is pretty
unique.

Alderwoman Kelly

You seem to know a lot about it. Do we have a life expectancy? Do you know how long they are typically will
last with this new technology?

Mr. Vayo

What happens over time with the ink is that the color fades and so some of the signs that face south will color
fade faster than the signs that face north. But the underlying equipment, the black painted poles will be of a
similar quality as to the poles and street lights that were installed on Main Street. So they are a pretty high-
quality product and they should be durable for many years, decades. Then the aluminum sheet sign, if some
of them fade over time replacement of the sheet and the panel itself separate from the pole and installation
would be a much smaller project. So one of the benefits of the sign package is that over time we have the
flexibility to update signs if we want to with a very limited financial and labor impact. If | had to guess, another
12 years for the 3M part of the sign, the poles should last longer. If we want to update a sign because say we
built a new performing venue on Main Street, we’d be able to update some of the signs.

Alderwoman Kelly

Thank you.

Alderman O’Brien

Thank you. I’m looking at some of the art work, | think you did a wonderful job. | see there is quite a contrast
from what we have right now so it’s going to be white lettering on a black face so it will pronounce itself to

really hit what we want the people to respond to. And | do like the logo with the cityscape and everything. So |
think you did a good job in designing them.

Mr. Vayo

| can’t take any credit for that, Greenman Pedersen did a great job shepherding the process and gathering
input from our steering group that really oversaw the design process.

Finance Committee - 4/4/2018 Page 14
Alderman Klee

They look gorgeous. The one complaint that | get most from people that come downtown is that they don’t see
the parking signs of where it is. And | see that you’ve got this large Nashua with a big “P” on it, so are those
going to be replacing the current parking signs that we have in the downtown area?

Mr. Vayo

Yes the sign family breaks down a couple different way and exists physically in downtown in a way that the
signs don't exist today. We see the Gateway signs if you get off at any of the highways exits you see the Great
American Downtown sign, those will get replaced and they will have this motif of artwork. But as you make
your way into downtown there will be additional signs to point you to additional parking resources, the blue “P”
being an example. And there is something called the trailblazer too, so if there’s a long distance, say you are
on the Broad Street Parkway and you get off on Exit 6, you see a “Welcome to Downtown Nashua” sign and
then say you are a mile down the Broad Street Parkway and you are feeling like maybe you are on the wrong
road, there is a sign that is there that says “continue forward”. And so it’s really meant and designed by
Greenman Pedersen to meet standards of roadway identification until you get to the garage. So | think in this
specific package if you look at Exhibit B, there’s a quantity of roadway parking trailblazer signs so those will be
located throughout the downtown area to help people find the many parking resources that we have in
downtown.

Alderman Klee

Thank you.

Alderman Laws

| like them too, | think they are great. | am just wondering are you getting all of the signs that you can

anticipate wanting in the near future, because it would be a shame if you invest all this money up front and
then a couple months or years from now you’re like “oh man | should have done that”.

Mr. Vayo

That’s a great point. From the get-go with this design package there was an anticipation of potentially
reconfiguration of roads in the future or destinations that might arise that don’t exist today. This design
package is not a full suite of signs. It is Phase 1 of signs with the anticipation that a Phase II of signs will be
rolled out at a later date once there are some definitive answers about where things are going. Those signs
have been designed and so what we are actually doing the opposite where we are withholding purchasing
signs until we know definitively where we are going with certain roadway configurations in the future.

Alderman Laws

Thank you.

Mayor Donchess

| don’t see anyone’s hand up. All those in favor of the motion?

MOTION CARRIED

Finance Committee - 4/4/2018 Page 15

From: Dan Kooken, Purchasing Manager
Re: Contract for Utility Cut Degradation Study (Value: $24,400)

MOTION BY ALDERMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
STANTEC CONSULTING SERVICES, INC. IN THE AMOUNT OF $24,400. FUNDS ARE AVAILABLE IN
DEPARTMENT 160, ADMINISTRATION/ENGINEERING; PAVING BOND

ON THE QUESTION

Mayor Donchess

| can give a little background on this since there is no one else from Public Works here. The City has a policy
that requires when a utility cuts the street that the repair be done by the utility. But in addition to that the cities
of Manchester and Concord have a policy that provides that in addition to repair, the utility needs to contribute
to a paving fund for each cut that they make depending upon its size. We want to move forward to enact such
a policy requiring a contribution but Public Works believes that we are requiring a much more extensive repair
and more expensive repair than is required in Concord or Manchester and therefore we may not be able to
adopt the exact same cash reimbursement policy because we are requiring more extensive work on the
ground immediately.

The point here is to engage Stantec which is the expert that has been helping with all the paving analysis for a
number of years to help design this policy so that it will withstand logical and legal challenge. | didn’t mention
that Manchester and Concord had to litigate this issue with paving companies and they did win the case. So
we can anticipate possibly that we can see the same thing. So we want to be on very solid ground when we
propose a policy to you that has expert backing which takes into account the more extensive repair
requirements we have or which alters those repair requirements. We just want expert input as to how exactly
we should design this program. And that’s what this contract would do, hire and engage Stantec to do this
analysis and help us with this project.

Any discussion or questions? There is a Memo but it’s not crystal clear.
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract 2018 Pavement Management Analysis Update (Value: $52,700)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
STANTEC CONSULTING SERVICES, INC. IN THE AMOUNT OF $52,700. SOURCE OF FUNDING IS
DEPARTMENT 160, ADMINISTRATION/ENGINEERING; PAVING BOND

ON THE QUESTION

Mayor Donchess

And again | can give you some background on this. Stantec as you know, we have begun a 5 year paving plan
of action $37 million dollars worth of paving over the next 5 years including some of it in 2017. We repaved
and repaired about 30 miles of streets in 2017 including crack sealing. In 2018 we will pave over 30 miles and
crack seal some additional beyond that. As compared with two or three years ago, we were paving 5 or 6
miles so we are doing about 5 times as much. Public Works is proceeding to determine which streets should
be paved based upon a paving condition analysis which was done for every street by Stantec, the expert that
we just spoke about.

However, the condition of streets changes and the roads need to be periodically reviewed to determine
whether the PCI paving condition index which was determined several years is still the case, in other words,
upgrade. Half the streets were re-evaluated in 2017 and the proposal here is to look at the other half to make