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Such application shall be supported by such data substantiating the CONTRACTOR’s right to
payment as the OWNER may reasonably require.
Application for Payment performed under this agreement shall be submitted directly to:

City of Nashua
Accounts Payable

PO Box 2019

Nashua, NH 03061-2019
Attn:

To facilitate the proper and timely payment of applications, the OWNER requires that all applications
contain a valid PURCHASE ORDER NUMBER.

4,

10.

Ls

12.

The CONTRACTOR warrants that title to all Work covered by an Application for Payment
will pass to the OWNER no later than the time of payment. The CONTRACTOR further
warrants that upon submittal of an Application for Payment, all Work for which Certificates
for Payment have been previously issued and payments received from the OWNER shall, to
the best of the CONTRACTOR’s knowledge, information and belief, be free and clear of
liens, claims, security interests or other encumbrances adverse to the OWNER’s interests.
OWNER shall make payments, for work satisfactorily completed and accurately invoiced, on
the basis of CONTRACTORs Application for Payment, within 30 days of approval by the
OWNER.

The CONTRACTOR shall promptly pay each SUBCONTRACTOR and material supplier out
of the amount paid to the CONTRACTOR on account of such entities’ portion of the Work.
The OWNER shall have no responsibility for the payment of money to a
SUBCONTRACTOR or material supplier.

An Application for Payment, a progress payment, or partial or entire use or occupancy of the
project by the OWNER shall not constitute acceptance of Work not in accordance with the
requirements of the Contract Documents.

Substantial completion is the stage in the progress of the Work when the Work or designated
portion thereof is sufficiently complete in accordance with the Contract Documents so the
OWNER can occupy or utilize the Work for its intended use.

When the Work or designated portion thereof is substantially complete, the CONTRACTOR
and OWNER shall establish responsibilities for completion and shall fix the time within
which the CONTRACTOR shall finish all items on the list accompanying the Certificate.
Warranties required by the Contract Documents shall commence on the date of Substantial
Completion of the Work or designated portion thereof unless otherwise provided in the
Certificate of Substantial Completion.

Upon receipt of a final Application for Payment, the OWNER will inspect the Work. When
he finds the Work acceptable and the Contract fully performed, the OWNER will promptly
issue a final Certificate for Payment.

Acceptance of final payment by the CONTRACTOR, a SUBCONTRACTOR or material
supplier shall constitute a waiver of claims by that payee except those previously made in
writing and identified by that payee as unsettled at the time of final Application for Payment.

AG-8

A regular meeting of the Board of Aldermen was held Tuesday, March 27, 2018, at 7:30 p.m. in the
Aldermanic Chamber.

President Brian S. McCarthy presided; Deputy City Clerk Judith Boileau recorded.

Prayer was offered by Deputy City Clerk Judith Boileau; Alderman Ken Gidge led in the Pledge
to the Flag.

The roll call was taken with 15 members of the Board of Aldermen present.
Mayor James W. Donchess and Corporation Counsel Steven A. Bolton were also in attendance.
REMARKS BY THE MAYOR

First | would like to welcome Dr. Mosley and our friends from the School Board and the School
Department to the meeting and | understand that Susan Porter is going to be sworn in as the most
recent member of the School Board. | would like to congratulate her and | am glad they came here for
the swearing in.

There are a couple of things on the Agenda that | wanted to mention. First the Ambulance Contract is
up for renewal under Communications. The contract, of course, is with AMR, they have been the
ambulance company for quite some time. They have done a very good job. This is for a one year
extension of the contract. The extension has been unanimously recommended by the Committee that
is in charge of supervising and evaluating their performance and they have done a very good job as |
said particularly with respect to the Safe Stations Program where Mr. Stawasz has been a particular
leader and | will mention that a little bit more in just a moment. | hope that you will agree with the
committee and approve the extension of the AMR contract.

Coming up this weekend on Saturday we have the Walk Against Heroin, beginning at 11:00 at Greeley
Park which comes down to City Hall and then goes back to Greeley Park. It’s led by a woman, a
Nashua Citizen, Darleen Pina, who has been leading all these marches and they take place several
time a year. It’s a very inspiring event and a lot of people usually show up, many people and many
families who have been touched very personally by the heroin crisis, by the opioid crisis. If you can
make it, | think it’s worth attending and showing your support for the many people who are working
against opioids and who have been tragically affected by the opioid crisis.

Along those lines | wanted to update you on the current status, we have had unfortunately 5 fatal OD’s
this month, the month of March, which is not a good month. Although for the first three months we are
on par, the same as last year with 8 fatalities. We are doing the right thing with the Safe Stations
Program. We meet every two weeks to evaluate the Program and to try to improve it. The fact-based
approach that we are developing along with AMR in terms of evaluating it has begun and AMR has
been very good in developing statistics and information regarding the people who report and those who
report to safe stations and many different respects. One thing that the analysis is showing and we are
continually trying to refine it, is it seems that the likelihood of a person who reports to Safe Stations, the
likelihood that they will OD after the report, is reduced by 62% as opposed to those who have not
reported to Safe Stations.

Another thing that seems clear, of course as we know, every single death is a tragedy but very few
people, a few but not many, have succumbed to a fatal overdose after reporting to Safe Stations and it
seems very obvious that the chances of succumbing to a fatal overdose are much, much reduced for
those who do report to Safe Stations. And of course this is due to the efforts of many people, including
many organizations, many people — Harbor Homes, the Fire Department, AMR, everybody who is
providing treatment. So it’s a big group, a community effort, so despite the fact that OD’s and some
fatalities continue it is doing a good job.

Board of Aldermen 03-27-2018 Page 2

The national trends are that overdoses and deaths were up significantly between 2016 and 2017 that
was not the case in Nashua. Thank God we were able to hold stable numbers as opposed to going up
like much of the nation. The Fire Department and Harbor Homes are continuing to get inquiries from
around the country regarding the program and asking advice and how other cities from Florida to
Rhode Island and other places could start and initiate a program. So | think it has gained an important
reputation and so | believe and | know we are doing the right thing. | wanted to update you and say |
appreciate all your support with respect to our on-going efforts.

This past weekend, we had the March for Our Lives staged by some of our High School students, Ben
Telerski and others. Alderwoman Shoshanna Kelly was very active in organizing that and it was a great
event. We had 500 or 600 people out in front of City Hall, the biggest rally | have ever witnessed. |
think people were inspired and the leadership by the young people, the high school students, was
extremely impressive and | have to think that over time this will have an effect in helping to bring
meaningful reform to our gun laws and reduce the rates of gun fatalities. So | wanted to congratulate
everybody who was involved in that effort.

Finally we also had the Meri Goyette Lunch on Sunday the 5™ Annual Meri Goyette Arts Lunch. A
number of you attended, Alderman McCarthy, Alderwoman Melizzi-Golja, Alderman Ken Gidge and
probably others. We raised some money for the endowment for the Performing Arts Center. We had
some great winners. The winners of the awards were Paul Shea, Michael Buckley, PRG Store right
next door and some of the Picker Artists who were able to successfully move from the Picker Building
to elsewhere in the Millyard. So overall, the event was really fun and we had a great turn out and | think
it's a wonderful event for the City and I’m glad at least some of the Board members were able to attend.
That’s all | have Mr. President.

RESPONSE TO REMARKS OF THE MAYOR

President McCarthy

Any responses to the remarks of the Mayor.
Alderwoman Melizzi-Golja

| would just like to join him in congratulating Ben and Alderwoman Kelly in organizing the March; | heard
it was very successful. | think that the parents of our students should be proud of the leadership they
are demonstrating. | would just add to the Mayor's comments about the luncheon that we also
celebrated Meri’s birthday, but | won't tell you how old she is, you'll have to ask her.

Alderwoman Kelly

| just want to respond as well. | think the leadership of the students was just so inspiring. But just also
the help that we had along the way from the City. The Police Department was incredible; people in the
City Clerk’s office just really came together and helped to get that off the ground. So | appreciate
everything.

Alderman Klee

| was unable to attend the march but | heard it was incredible and that you did a wonderful job. The
other thing is | wanted to mention about the Awareness March that the Mayor had spoken about. l’ve
spoken to Darlene and | really do think it’s important for as many of us that can go should go. It’s an
awareness, it’s healing and it’s to help break down walls to show that it’s not something we have to be
ashamed of. It’s something we have to bring out in the open and we have to talk and it takes a lot of
brave people to do that. And | went last year in the pouring rain and it was absolutely amazing to see
these people carrying pictures of their families and literally telling their stories. And this year they are

Board of Aldermen 03-27-2018 Page 3

going to put a line across and put pictures on it of all the people who have been lost and so on. And |
think it would be a great support. Hopefully the sun will be out this year.

Alderman Lopez

| just want to comment. At the March For Our Lives rally, the Police were very professional, they were
also very engaging and polite. | think it was very reassuring to the public, | think it’s a great example of
positive Police presence where a lot of people who might have been looking anxiously around felt very
much like the Police were there serving them, protecting them and all that. So | just want to give credit
to the Police for how they handled that in particular. | also wanted to echo sentiments about the
Awareness is Healing Walk. Mayor Donchess you might have some competition for the number of
people who were at that, because the first year, if | remember correctly there were like 800 people. So
you might see just as much of a turn out as we saw last weekend. And | think that’s the take-away that
the Alderman should be looking at.

The opioid crisis is a tragedy, people are struggling for recovery every day and we are losing people.
We can’t afford to, these are people with dreams, and they are people with families, people that could
be leaders. And one of the things that I’ve seen at the Awareness is Healing Walk and in our own
neighborhoods, more and more people who are choosing recovery and they are supporting each other
in it, are becoming leaders and they are people who may have once been identified as part of the
statistical problem are stepping forward to become part of the solution. When you go to the Awareness
is Healing Walk, it’s not just about everything that is lost it's about the resolution for what we are going
to do. Programs like Revive, GateHouse, the necessary pieces to help people re-build their lives, those
are born out of these kinds of walks. So | encourage everybody to attend so you can be part of that.

RECOGNITION PERIOD — None

READING MINUTES OF PREVIOUS MEETINGS AND PUBLIC HEARING

There being no objection, President McCarthy declared the minutes of the Board of Aldermen
meetings of March 6, 2018, March 14, 2018, and the public hearing conducted by the Human
Affairs Committee on March 12, 2018, accepted, placed on file, and the readings suspended.

COMMUNICATIONS REQUIRING ONLY PROCEDURAL ACTIONS AND WRITTEN REPORTS
FROM LIAISONS — None

PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED
UPON THIS EVENING - None

COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Mayor Jim Donchess
Re: Ambulance Contract Extension (Value: $0); Department: 152 Fire

MOTION BY ALDERMAN O’BRIEN TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE ONE
YEAR EXTENSION TO THE AMBULANCE AGREEMENT WITH AMERICAN MEDICAL RESPONSE
OF MASSACHUSETTS, INC.

ON THE QUESTION

Alderman Lopez

The cost is zero but the value priceless.

Board of Aldermen 03-27-2018 Page 4
MOTION CARRIED

From: Patricia D. Piecuch, City Clerk
Re: Returns of Votes — Special Municipal Election held March 20, 2018

MOTION BY ALDERMAN CARON THAT THE RESULTS RECORDED ON THE CITY CLERK’S
RECORD OF RETURNS FOR THE BOARD OF EDUCATION RACE AT THE SPECIAL MUNICIPAL
ELECTION ON MARCH 20, 2018, BE DECLARED FINAL AND CONCLUSIVE, AND THAT SUSAN
PORTER,HAVING RECEIVED THE LARGEST NUMBER OF VOTES CAST, BE DECLARED
ELECTED TO THE OFFICE OF BOARD OF EDUCATION FOR A TERM TO EXPIRE JANUARY 5,
2020

MOTION CARRIED

President McCarthy declared Susan Porter duly elected to the Board of Education for a term to expire
January 5, 2020.

Oath of Office administered by Corporation Counsel.

There being no objection, President McCarthy suspended the rules to accept a communication
received after the agenda was prepared

From: Mayor Jim Donchess
Re: KRT Appraisal Contract

MOTION BY ALDERMAN WILSHIRE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT
TO KRT APPRAISAL IN THE AMOUNT OF $500,000

MOTION CARRIED

PETITIONS — None

NOMINATIONS, APPOINTMENTS AND ELECTIONS

Appointments by the Mayor
The following appointment was read into the record:

Environment and Energy Committee
Anita Arden Cala (New Appointment) Term to Expire: March 31, 2020

15 Taylor Street
Nashua, NH 03060

There being no objection, President McCarthy accepted the appointment by the Mayor as
read and referred it to the Personnel/Administrative Affairs Committee.

REPORTS OF COMMITTEE
Budget Review COmmittee........... cece cccccccceeeeesneeeeeeeeececneeeeeeeeeesentniseeeeteeeeeees 03/15/2018

There being no objection, President McCarthy declared the report of the March 15, 2018, Budget
Review Committee accepted and placed on file.

FINANCE COMMI*SE. .0 0... eee ccceccccuececcecceeececeeaveceueeecauceeeuceetaneettateetereettateeraess 03/21/2018

Board of Aldermen 03-27-2018 Page 5

There being no objection, President McCarthy declared the report of the March 21, 2018, Finance
Committee accepted and placed on file.

Human Affairs COMMIttee?.... oo cece ceeeccccececeuececeeceeeueceeaeeesaueeeraceesaeeentasess 03/12/2018

There being no objection, President McCarthy declared the report of the March 12, 2018, Human
Affairs Committee accepted and placed on file.

Planning & Economic Development ...0..00... 0. ccccccccec sees eneeeeeeeeeeeesnansaneeeeees 03/06/2018

There being no objection, President McCarthy declared the report of the March 6, 2018, Planning &
Economic Development Committee accepted and placed on file.

CONFIRMATION OF MAYOR'S APPOINTMENTS — None
UNFINISHED BUSINESS — RESOLUTIONS

R-18-007
Endorsers: Mayor Jim Donchess
Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd
Alderman Tom Lopez
Alderman June M. Caron
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Michael B. O’Brien, Sr.
Alderwoman-at-Large Shoshanna Kelly
AUTHORIZING THE FILING OF APPLICATIONS AND EXECUTION OF GRANT
AGREEMENTS WITH THE U.S. DEPARTMENT OF TRANSPORTATION FOR GRANTS
UNDER THE URBAN MASS TRANSPORTATION ACT OF 1964, AS AMENDED, FOR
FISCAL YEARS 2019 AND 2020
Given its second reading;

MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-18-007
MOTION CARRIED

Resolution R-18-007 declared duly adopted.

R-18-009
Endorsers: Mayor Jim Donchess
Alderman-at-Large Lori Wilshire
Alderman Linda Harriott-Gathright
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman Tom Lopez
Alderman June M. Caron
Alderwoman-at-Large Shoshanna Kelly
Alderwoman Mary Ann Melizzi-Golja
Alderman David C. Tencza
Alderman Jan Schmidt
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman-at-Large Brian S. McCarthy
RELATIVE TO THE TRANSFER OF CITY MATCHING FUNDS IN THE AMOUNT OF $2,985
FROM POLICE GRANT ACTIVITY “FY2018 VIOLENCE AGAINST WOMEN GRANT

Board of Aldermen 03-27-2018 Page 6

PROGRAM” INTO POLICE GRANT ACTIVITY “FY2017 VIOLENCE AGAINST WOMEN
GRANT PROGRAM”
Given its second reading;

MOTION BY ALDERMAN WILSHIRE FOR FINAL PASSAGE OF R-18-009
MOTION CARRIED

Resolution R-18-009 declared duly adopted.

R-18-010
Endorsers: Alderman-at-Large Brian S. McCarthy
Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd
Alderman June M. Caron
Alderwoman-at-Large Shoshanna Kelly
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large David C. Tencza
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Linda Harriott-Gathright
AUTHORIZING THE CITY TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH
THE CITY OF MANCHESTER, NEW HAMPSHIRE REGARDING A REMOTE DISPATCH
CENTER
Given its second reading;

MOTION BY ALDERWOMAN KELLY FOR FINAL PASSAGE OF R-18-010
MOTION CARRIED

Resolution R-18-010 declared duly adopted.

R-18-012
Endorsers: Mayor Jim Donchess
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Lori Wilshire
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman Linda Harriott-Gathright
Alderman June M. Caron
Alderwoman-at-Large Shoshanna Kelly
Alderman-at-Large David C. Tencza
Alderman-at-Large Michael B. O’Brien, Sr.
AUTHORIZING THE CITY OF NASHUA TO ENTER INTO CONTRACTS WITH NASHUA
COMMUNITY COLLEGE, RIVIER UNIVERSITY, TOWN OF HUDSON, TOWN OF MERRIMACK,
AND THE PLUS COMPANY FOR TRANSIT SERVICES
Given its second reading;

MOTION BY ALDERWOMAN MELIZZI-GOLJA FOR FINAL PASSAGE OF R-18-012
MOTION CARRIED

Resolution R-18-012 declared duly adopted.

Board of Aldermen 03-27-2018 Page 7

R-18-013
Endorsers: Mayor Jim Donchess
Alderwoman Mary Ann Melizzi-Golja
Alderman-at-Large Lori Wilshire
Alderman Linda Harriott-Gathright
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large Brandon Michael Laws
Alderman June M. Caron
Alderwoman-at-Large Shoshanna Kelly
Alderman Jan Schmidt
Alderman-at-Large Michael B. O’Brien, Sr.
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $378,117 FROM THE STATE
OF NEW HAMPSHIRE, DEPARTMENT OF TRANSPORTATION INTO TRANSIT GRANT
ACTIVITY “TRANSIT SERVICE EXPANSION”
Given its second reading;

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT FOR FINAL PASSAGE OF R-18-013
MOTION CARRIED

Resolution R-18-013 declared duly adopted.

R-18-014
Endorser: Mayor Jim Donchess
RELATIVE TO THE TRANSFER OF UP TO $50,000 FROM DEPARTMENT 194— CONTINGENCY,
ACCOUNT 70150 — CONTINGENCY, NEGOTIATIONS INTO VARIOUS SALARIES & WAGES
ACCOUNTS

Given its second reading;

MOTION BY ALDERMAN DOWD FOR FINAL PASSAGE OF R-18-014
MOTION CARRIED

Resolution R-18-014 declared duly adopted.

UNFINISHED BUSINESS — ORDINANCES

O-18-006
Endorsers: Mayor Jim Donchess
Alderman-at-Large Brian S. McCarthy
Alderwoman Mary Ann Melizzi-Golja
EXPANDING THE TAX INCREMENT FINANCING DEVELOPMENT DISTRICT UNDER RSA
162-K AND NRO 295-11, ESTABLISHED BY O-03-171 AND REPLACING THE TAX
INCREMENT FINANCING DEVELOPMENT PROGRAM AND FINANCING PLAN ADOPTED BY
R-03-197 AND
R-04-58
Given its second reading;

MOTION BY ALDERWOMAN MELIZZI-GOLJA FOR FINAL PASSAGE OF O-18-006
MOTION CARRIED

Ordinance O-18-006 declared duly adopted.

Board of Aldermen 03-27-2018 Page 8

NEW BUSINESS — RESOLUTIONS

R-18-020

Endorsers: Mayor Jim Donchess
Alderman-at-Large Lori Wilshire
Alderwoman Mary Ann Melizzi-Golja
Alderman June M. Caron
Alderman Jan Schmidt
Alderman-at-Large Michael B. O’Brien, Sr.
Alderwoman-at-Large Shoshanna Kelly
Alderman Tom Lopez
Alderman Patricia Klee
Alderman Richard A. Dowd
Alderman Linda Harriott-Gathright
Alderman Brandon Michael Laws

AUTHORIZING THE MAYOR TO APPLY FOR AND EXPEND THE COMMUNITY
DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME INVESTMENT PARTNERSHIP
PROGRAM FUNDS FOR FISCAL YEAR 2019

Given its first reading;

There being no objection, President McCarthy accepted the first reading of R-18-020, referred it to
the Human Affairs Committee and scheduled a public hearing for Monday, April 9, 2018, at 7:00
p.m. in the Aldermanic Chamber

NEW BUSINESS — ORDINANCES

O-18-010

Endorser: Alderwoman Mary Ann Melizzi-Golja

AMENDMENTS TO THE EXPLOSIVE MATERIALS CODE
Given its first reading; assigned to the PLANNING & ECONOMIC DEVELOPMENT COMMITTEE by
President McCarthy

PERIOD FOR GENERAL PUBLIC COMMENT - None

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN
Alderman Jette

| wanted to make several comments about things that we have tonight. Number one, the Special
Election, several people have talked to me about the Special Election and when | voted the people that
work at my Ward, several people expressed concerns about the way that we select people to replace
people who have resigned or where there is a vacancy. The people who work at the Ward are telling
me that, well we all Know that they work from 6:00 a.m. until 8 p.m., so that’s 14 hours, plus they have
to get there before to set up and they are after to take down. Some of them were looking for people,
they were short of people, so some people had to go to a training session, so they spent another couple
of hours learning how to do the job. These people are paid, but they are not paid very much, they are
volunteers, they do it out of a sense of civic duty. And they express to me how disappointed that they
were that so few people showed up. | don’t know why people didn’t show up, | don’t know if they didn’t
know about the election or if they knew about it and didn’t care. | don’t know if they didn’t care because
they don’t care or if they didn’t care because they felt that the two candidates were equally qualified and
it wasn’t that important to them which candidate won.

Board of Aldermen 03-27-2018 Page 9

The fact is that city-wide only 3.38% of eligible voters showed up for this election and the City Clerk’s
office today couldn't tell me exactly how much it cost because they don’t have all the numbers yet. |
know before they talked about it costing over $30,000.00. So it’s $30,000.00 that we don’t necessarily
have to spend, plus the people who man the polls are spending a lot of time doing this. So the poll
workers asked me, “isn’t there some better way we could do this” and | don’t know, | don’t know if there
is or not. | know that a lot of people feel very strongly that the only way to elect people is to have an
election, where all the voters have a chance to express their vote. | want to acknowledge the people
who talked to me about it and wondered if there is some alternative way to select a replacement during
a short-term, until a regular election could occur. And | don’t know what the answer is but I’ll be looking
into it.

The other thing that | wanted to talk about is as I’m sure you all have received a lot of complaints about
pot holes. And | am the liaison to the Board of Public Works. | conveyed the fact that people have
complained about pot holes to them. They have gone through the explanation and it’s on the web site,
you have all heard it a million times about how pot holes are created and during the winter there is not a
whole lot we can do about it, other than patch because it’s cold, it’s a cold patch and it doesn’t last very
long. It’s not a good solution until the weather improves when more permanent repairs can be made.
But some people have said that their cars have suffered damage as a result of the pot holes and |
wanted to make sure that people knew that you can report pot holes . The Department of Public Works
has a place that you can on-line go to DPWREQUESTS@NASHUANH.GOV and report a pot hole.
You can also call them at 589-4797. There is also, if you go on the web site, you'll find a nice little
chart, it’s at yourgov.cartegraph.com and it’s a little map. And on this little map with your cursor, you
can pinpoint where this a pot hole and click it and it automatically reports it to the Department of Public
Works. | did it this weekend and | got an acknowledgement that my report had been received and
hopefully that will translate into those pot holes being filled. | wanted people to know about that. And if
you suffer damage, you can also report it to the City Risk Management Department and make a claim
that way.

| also wanted to comment, as a new Alderman, | am constantly amazed at how fast things happen here.
I’m sure people watching have kind of wondered themselves, “what just happened”. But | wanted
people to know we just awarded a contract to KRT Appraisal to do a revaluation. And | have concerns
expressed to me about the revaluation and | wanted to take this opportunity to try to explain and if |
don’t do it well enough Mayor, I’m sure you will correct me. The City has to revalue the properties
every five years. To do a true revaluation we would hire a company to come in and visit every property
in the City inside and outside to determine how that value might have changed over the years. That is
a very expensive process, millions of dollars it would cost. So instead of doing that, we are doing,
which is perfectly acceptable and something that we have done for years now, it’s a statistical
revaluation where we hire a company. KRT Appraisals is going to look at all the properties in town and
re-evaluate them according to recent sales, comparable sales they are called. So if your property has
been appraised at let’s say $200,000.00 and similar houses like yours in your neighborhood have sold
for $300,000.00 because the values have gone up, this company is going to say we value your
property, based upon those comparable sales at a higher amount.

The problem that the Mayor has pointed out, is that for residential properties we have lots of information
about sales. During the past year there have been lots of sales and they compare your property to
recent sales of similar properties and determine pretty accurately what your property is worth, what the
fair market value of your property is worth today in today’s market. With commercial properties,
however, the information is not so readily available because there haven’t been many sales of
commercial properties. So the Mayor is afraid that while the residential properties are going to be
increased in value because of this new information, that commercial properties are going to stay the
same because we don’t have a lot of information about sales. He has proposed that KRT is going to do
this, they are going to look at commercial properties and re-value them not based on sales because
there is not a lot of information about sales, but rather based upon their income value. How much are
they renting their properties from or how much are similar properties being rented for and to determine
their value based upon their rental income. This appraisal company and the Mayor feel that this would