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Special Bd. of Aldermen — 04/15/2019 Page 3

Alderwoman Kelly

Clearly we need to replace these; snowing inside does not make any sense. | was wondering | know you showed
us the heat map, do you have any idea how much you will save in costs in terms of heating and efficiency once
putting these new windows in?

Deputy Chief Carignan

So when we restarted the project a couple months ago, the Mayor had asked us to do this, however he had asked
us after the project had already been sent out to bid. So instead of spending the money to do the energy study,
we knew that they need to be done, so we opted to keep moving forward with the plan that we had. | am going to
discuss a study in 2011 an energy efficiency study, | will show you some of the results, that’s at the end of the
slide presentation. So | will get back to it and if you have some more questions we'll get an answer.

Alderman Dowd

Additionally the savings would be hard to calculate since part of this project is replacing the entire HVAC system.
So there is going to be a huge savings with a new, more efficient HVAC system as well. So the overall savings
will be far exceeded just fixing the windows.

Deputy Chief Carignan

Thank you. The second and probably the more important part of this project is the replacement of the HVAC
system. Again in 1999 several things were starting to fail as the building got 20 plus years old. We have what we
call a mechanical room, I'll get back to the pictures in a minute. This is part of our mechanical room. This is
original to the building in 1977 and it has been operating in the same manner since then. It is old and outdated
and continuous disrepair. As you can see the blue in the back, in the back upper right hand corner, that is part of
the HVAC system that manages the air flow in our gun range, our firing range, which is downstairs right below this
area. |’ll discuss that in a minute.

So in 1977 when this system began to fail a project was developed to replace it. That mechanical room was cut
out of the project because it was too expensive. Instead they opted to install hot water pumps, heat water pumps.

David Bailey, Captain Nashua Police Department

Just a correction, | think you said 1977, it was 2005 you meant for when they cut that out of the replacement, the
2005 upgrades to the HVAC System, that was originally on there and then the City asked to cut that out, so that
was cut out with the agreement with the Mayor at the time. If l’m not mistaken that was Streeter and that we
would come back in near future and seek additional funding to replace that.

Deputy Chief Carignan

So that has yet to be replaced and as a result of that, that room is still operating, however we had one piece of
equipment out on the roof that had failed at that time and that was also part of the system that was not to be
replaced; that has never been replaced. Without that system, it is forcing the heat water source pumps which are
operating throughout the system to do all of the work that is designed to do only half of the work. It is putting a lot
of stress on them and those are starting to break now.

Also, it should be noted that every piece of HVAC equipment, with the exception of the two heat water source
pumps we’ve replaced are operating off our 22 Refrigerant which in the year 2020 will no longer be available to
purchase and that is going to be an issue throughout the City that is going to have to be addressed. So different
portions of this mechanical room are breaking down. The mechanical room operates the air flow in our gun
ranges, | was talking about earlier. Vhat we started to find, one of the driving forces to fix this problem is that

Special Bd. of Aldermen — 04/15/2019 Page 4

several of our range officers had elevated lead levels. So we have had different companies come in and test the
lead throughout the range, we’ve had to go through an extensive cleaning and part of the problem was identified.
There are a couple of reports which you should all have. The air flow in that gun range is not properly designed

for what the officer's environment is now as they train. It is a single system that pushes the air across and down
the range back into the officer's faces as they are going through their training. We do use lead free ammunition,
however, there is still lead fragments in the primers and in the bullets as they are hitting into the back wall.

So we had that evaluated and we had a mechanical report completed by a company called SMRT and they
identified each of the parts that were failing and which needed to be replaced and some of these parts were 20
years past life. Just a couple of pictures to show you the age of the building. Several of these systems are run off
of fan belts and they are constantly breaking; they are constantly falling off. And if you are not doing daily
inspections you are going to miss that they are going off and again they will be running at less efficiency.

The last thing | want to address to you to answer your question Alderman Kelly in 2011 the City of Nashua did an
Energy Use Study relative to efficiency and assessment. You will notice in the green highlighted area that the
Nashua Police Department in 2011 was operating at 15% efficiency. The next highest | believe was 40 to 42% if |
am not mistaken. So back in 2011 we were operating at 15%. We haven’t made any changes so | would imagine
that number has gone significantly down. That is the situation we are at now. We are asking for the entire
system to be replaced based on the reports of the SMRT. Yes sir?

Alderman Lopez

So basically we are wasting tax payer money running a very inefficient system and we are potentially affecting the
health of our officers who are practicing their aim so that’s another good place for them to be and your windows
can be described as being a pain.

Deputy Chief Carignan

Correct.
Alderman Klee

First off, yes | agree with Alderman Lopez that it does need to be replaced. And | am really concerned over the
Officers testing high on lead levels and that being something caused by this building, a very unhealthy building it
sounds like to me. How many officers were there. One is too many so let me start with that.

Deputy Chief Carignan

So we have three range officers, three full-time range officers, one that had cycled out throughout the more recent
process. Each of the four had elevated lead levels. One of the officers was at a point where we almost had to
pull him out of his position and not allow him to be on the range. Now | would also like to say that the issue with
the air flow in there and the lead contamination was not 100% based on the HVAC system, that system was
blowing that air back at them being potentially dangerous for them. But that range is also original to the building,
it had never been deep cleaned. So we had to hire a company which we did within our own budget to come in
and clean all of the, we had to clean all of the filters and we had to repaint, we had to strip down the walls, take
out the floor, re-do the floor, repaint everything pull the ceiling down. So we had to a lot of deep clean in that
range which had never been done. We are hoping that in addition to stripping out a lot of the stuff, we don’t have
room in the building to put a lot of the stuff that we had on the range that we use for training. We've had to
basically we’ve had to find other places for them. We can tuck them in the garage, we put them outside in a
different closet, so by taking all the material out there we take out stuff that can contain and hold on to that lead
material.

We have changed to a lot of stainless steel and non pourable surfaces to not hold the lead; put tape strips down
that you can take the lead off the shoes as they are exiting. So we have made several changes that were

Special Bd. of Aldermen — 04/15/2019 Page 5

recommended by a company that specifically does ranges to help curb those lead levels. But the air flow system
in there is not pushing that back in an environment that keep it to them.

Alderman Klee

Yeah that was kind of what my second question was. So when it was pushing the air back into them, was that air
cycling into other areas of the station or the house sort to speak?

Deputy Chief Carignan

To answer your question simply is no. There is a pretty heavy secure door that closes that range off and it is
sound proof so it is pretty tightly sealed so that airflow is not getting pushed throughout the building. In 1977 we
had much different tactics, we would basically stand on a static line, the targets would move forward back and
forth and the officers would just shoot at the targets as they were moving. The training nowadays is a lot different,
| know the Chief has talked quite extensively on how well we train and how important it is that we train and using
Best Practices and Modern Techniques. We now have the targets, we engage the targets are static at the end
and we move back and forth to it. And some of our training includes moving forward, moving back, moving
sideways, up in front of cover. So it is no longer feasible to stand there and the way that air flow goes there’s only
one blower that sucks and pushes the air and it is constantly pushing it into the officers. So now the way we do
our training it is inefficient and if we need to change the system, now is the time to do the range portion as well.

Alderman Klee
Thank you very much.
Alderman Tencza

Just a couple questions. First assuming that this bond goes through, are you going to need an extra space or
have to lease space other places so that the normal routine operations of the Police Department go on as per
usual.

Deputy Chief Carignan

Well | guess the assumption would be that this old system is pretty old and pretty big and cumbersome, | am
assuming that any new system would be a little more efficient, a little bit more smaller.

Alderman Tencza

And I’m thinking, excuse me for cutting you off, but | am thinking while the work is going on | can imagine it would
be difficult to have them completely overhauling the HVAC System or even windows and still have the normal — |
mean you guys are running 24/7 over there at the building so it’s not like there is a lot of down time.

Deputy Chief Carignan

| believe that the timeframe of the window project is around fall of 2019 because we have already had the bid put
in. So that’s the optimal time for them to put in windows and we will be prepared to provide officers or for civilian
personnel to stand by while they do it. The HVAC System would be much longer down the road, because we
would have to get the designs created and studied. So we are looking at about a 25 to 27 week turnaround time
for them to get the designs complete and to be able to put the project out to bid. So it would be done in different
sections. We would, you know, there would be times where we are going to have to shut down operations in
different areas. Our gun range, we will know ahead of time what we will need to shut down and we will just plan
accordingly. We had to shut down for almost a month to clean the range and we just did different sets of training
qualified before and after and we just worked around our systems that we just have to make do. And it’s
important so we will make it work.

Maintenance, repairs and minor improvements are charged to expense as incurred. Improve-
ments which significantly increase the value of property, plant and equipment are capitalized.

Cash and Cash Equivalents

Cash and cash equivalents generally consist of cash, money market funds and other short-
term liquid investments with original maturities of three months or less.

Restricted Cash - RSF

This restricted cash balance consists of funds maintained for the Rate Stabilization Fund
(“RSF”), which was established in conformity with the requirements of NHPUC Order
25,292, as explained more fully in Note 12 of these financial statements. The RSF is an
imprest fund of $5 million, which is subject to funding above or below the imprest fund
balance, reflecting actual revenue performance as it relates to prescribed revenue levels
supported by the RSF. Of the approximately $5.7 million in restricted cash as of December
31, 2015 and in compliance with the rules governing the use of the RSF, approximately
$729,000 is reserved as a potential return to rate payers as a component of the new water
rates set as a result of the next promulgated rate case before the NHPUC, for which that
timing and occurrence is yet to be determined.

Restricted Cash — Bond Project Funds

This restricted cash balance consists of funds which resulted from the issuance of the Series
2014 and 2015 tax-exempt bonds in December of 2014 and October of 2015, respectively.
The new money proceeds, as described in Note 10, from those bond issuances are maintained
in a separate restricted cash account, and are subject to withdrawal as a reimbursement of
eligible capital project expenditures for the years 2014 through 2016, as defined by the
indenture and issuance documents associated with each offering. This fund was initially
funded at a level of $19.5 million, at the time the 2014 bonds were issued in December of
2014, then increased by approximately $7.5 million to approximately $27 million, with the
proceeds from the 2015 bond issuance, in October 2015. In the period beginning in
December of 2014 through December 31, 2015, a total of approximately $7.3 million has
been drawn from the fund for payment of closing costs and as reimbursements for qualifying
capital projects completed and “used and useful” during late 2014 and throughout 2015. In
late 2015, $17.2 million was drawn from these restricted cash amounts and invested in
financial instruments with varying maturities throughout 2016.

Restricted Cash — Bond Refund Escrow

This restricted cash balance consists of funds that resulted from the issuance of the Series
2014A tax-exempt bonds in December of 2014, as notated and fully described in Note 10 of
these audited financial statements. The refinance money proceeds, as described in Note 10,
from that bond issuance are maintained in a separate restricted cash account, pending the
completion of the refinance of existing tax-exempt bonds on January 20, 2015, the date at
which the required 30-day notice period to bondholders has expired from the date of
notification after the close of the December 15, 2014 bond closing. As of January 20, 2015,

12

Special Bd. of Aldermen — 04/15/2019 Page 6

Alderman Tencza

Just specifically on the gun range and having it be within the Police Department within that building specifically, |
mean has there been thought to either having some place that is off site that is not necessarily as contained as
the gun range at the Nashua Police Department. Has that been thought of, because regardless of the HVAC
system, right if you are shooting bullets in there, there is going to be a lot of lead floating around in the air. Not
just in that room but through the building.

Deputy Chief Carignan

There are a couple different things we can cover to answer your question. We have transitioned in this next
round of ammunition that we purchased, given that we’ve transferred guns over to 9 millimeter; we are buying
now completely lead-free rounds that even the primers no longer carry that lead product in them. Having the
range at the station allows us to bring officers in for what we call Quick Hitter Training, meaning we are not going
to spend a full day and tie up overtime on this training. If we have a certain issue we can cover, we will bring
them off the street, put them down in the range, engage in an exercise and then they can go right back on the
street. So they may be off the street for 20 to 25 minutes as opposed to a full 8 hour shift.

Another option is an outdoor range, like say at the landfill. Nashua is pretty limited to where you want bullets
flying outside of a building. We our rifle training, we do our high caliber weapons elsewhere at Hudson ranges.
We did look into whether or not it would be economically feasible to outsource our range training and do stuff, but
with the amount of officers that we have and the amount of training that we do to get either a private range or an
outdoor range, they wouldn’t be able to schedule the amount of times that we would need it. And a lot of those
private ranges have rules that don’t conform to our shooting, the tactics that we are using and we are trying. Like
| say, we do a lot of moving, we do a lot of engaging targets before we have to engage in shooting, a lot of
physical activity to get the heart rate up. So there’s a lot more to it that a lot of those ranges for insurance
purposes would not allow us to do.

Alderman Dowd

Any other questions? You might want to stay there in case a question comes up, also if we have any questions
relative to the bonding itself, Treasurer Fredette is here. | am going to start the Public Testimony.

Testimony in Favor - None
Testimony in Opposition - None
Testimony in Favor - None

Testimony in Opposition - None

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN TO ADJOURN
MOTION CARRIED

The meeting was declared adjourned at p.m.

Attest: Patricia Piecuch, City Clerk

Nashua Police

Window Replacement Project
HVAC Replacement Project

Window Replacement Project

Original portion of building built in 1979
There are 47 original windows in building

Many are failing causing ingress of weather
and energy losses

A bid (IFB1075-010319)was obtained from D.L.
King in the amount of $134,500 to replace the
47 failing windows

These windows will be the same as the
windows installed in 1999

Men’s Locker Room

Several windows leak water and snow causing damage to
sheetrock walls

Men’s Locker Room

Another example of gasket failure causing water damage to
sheetrock wall

Detective Bureau

Several windows no longer have a rubber gasket surrounding
the window allowing cold air, bugs, and moisture to enter the
building. This is also a large source of heat/energy loss
throughout the building