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Cost Benefit Analysis

Funding entities want to know how their money is spent and what benefit they
are receiving from the investment. When analyzing programs like drug courts, it is often
difficult to demonstrate a dollar for dollar Savings when funds from one category may be
diverted to another category within a funding agency's budget, and when there are
multiple benefits to society as a whole. For example, while we know that it costs up to
$30,000 per year to incarcerate an offender, it costs only $8,000 - $12,000 per year to
treat the offender in the community and reduce the likelihood the offender will appear in
jail again. Notwithstanding the value of the drug court expenditure, budgets cannot be
reduced by $30,000 per drug court participant. In an extensive report from the National
Institute of Justice published in June of 2014, the cost-benefit analysis is identified as an
approach to measure the impact and success of drug courts.

This type of analysis provides a framework to combine diverse impacts such as
costs and benefits. For example, drug courts provide benefits, e.g. less crime, lower
incarceration rates but also incurs costs, e.g. treatment, and time spent by staff involved
in the program. Ideally, the benefits will be greater than the costs. The cost-benefit
analysis for drug courts may tell us the effect the program had on the participants, the
criminal justice system and the community. It is less likely to identify the exact savings
to the court or corrections department for example.

In determining the costs of drug courts, some factors to consider include the
value of the time of the team members, cost of court processing the case, cost of
treatment and other services, and the cost of drug testing. Benefits of the program
include fewer arrests, less time spent in jail, increased employment, less use of public
assistance, less hospital costs, and an increase in child support for some. By assigning
a value to each of these factors, an analysis can be made of how the program benefits
the participants, the community and the state.

Nationwide, for every $1.00 invested in Drug Court, taxpayers save as much as
$3.36 in avoided criminal justice costs alone.

12

A regular meeting of the Board of Aldermen was held Tuesday, February 20, 2018, at 7:00 p.m. in the
Aldermanic Chamber.

President Brian S. McCarthy presided; City Clerk Patricia D. Piecuch recorded.

Prayer was offered by City Clerk Patricia D. Piecuch; Alderman-at-Large David C. Tencza 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 present.
MAYOR’S ANNUAL STATE-OF-THE-CITY ADDRESS

Good evening President McCarthy, Vice President Wilshire, members of the Board of Aldermen, School
Board, Fire Commission, and BPW, members of our legislative delegation, School Superintendent
Mosley, Police Chief Lavoie, Fire Chief Galipeau, city division directors and staff, and community
members. | want to thank my wife Vicki, who is here with me tonight, and our daughter Caroline, son-in-
law David and grandson Ajax for all the love and support you give me. Before we proceed, let’s have a
moment of silence for the grieving parents, families, students, teachers and community members from
Parkland, Florida who suffered a terrible tragedy, another senseless school shooting, this past week.
Thank you.

To all Nashua citizens:

When | became Mayor two years ago, | called on all Nashuans to come together and join in making
Nashua a livable city that works for everyone, in every neighborhood — an innovative, energetic, leading
21° century city for young families and for retirees, for children and for parents, for residents of the North
End, South Nashua and the inner city.

And you are answering the call. We are strengthening our economy with added jobs, new housing, and
a revitalized downtown. We are making smart, strategic investments by rethinking, rebuilding, and
enhancing our infrastructure. We are fighting the opioid epidemic with all our might. By focusing on our
children from cradle to college and career, we are preparing them for real life. We are getting involved,
and we are staying involved. We have made great progress over the past two years, and the state of the
city has never been stronger. But there is still much work to do.

Nashua was recently declared the “Safest City in the US” by WalletHub and just this month the “Best
Place to Live in New Hampshire” by Money Magazine. Such recognitions — and the city has received
many over the years — have been earned by the Nashuans of today and of the past, who have worked
together to make Nashua a great city.

The Board of Aldermen and | have been successful in working together and in resolving any differences
to get real results for the citizens of Nashua. We now have eight new members of the Board of
Aldermen, joining seven returning members. | look forward to continuing to work with President Brian
McCarthy and Vice President Lori Wilshire and with all our aldermen and alderwomen to move our city
forward.

Board of Aldermen — 2/20/18 Page 2

Growing Nashua’s Economy — More Jobs, New Businesses and Downtown Housing

We have made significant progress in growing our economy. We are adding hundreds of new jobs — 750
at BAE, 100 at UPS, 75 at Prudential Overall Supply, 100 at Boston Billiards, 50 at 44 Franklin Street,
and more at Gateway Hills. New companies have been coming to Nashua. Most recently Vybe
Software and D & P Bioinnovations have joined the growing group of innovation economy companies
that have located here.

We have started working with MIT on a project that will help us develop new strategies to grow jobs and
add businesses to our city. A team of graduate students and Economic Development Professor Karl
Seidman are currently studying Nashua’s economy, the Millyard, and entrepreneurship in Nashua.
Southern New Hampshire University has purchased two buildings at the Nashua Airport and is going to
re-establish pilot training there. Makerspace Makelt Labs on Crown Street is booming with new
members and activity.

When | ran for Mayor, | committed to new downtown housing and new energy and vitality in the heart of
Nashua. A reinvigorated downtown including new housing, a restored Nashua riverfront, a performing
arts center, additional stores and restaurants — is good for all Nashuans, because it will expand our tax
base and help pay for infrastructure, for schools, fire and police protection and for other services that
benefit Nashuans in all neighborhoods.

This spring, 200 units of housing will open in the mill-to-housing conversion on Franklin Street, and 150
units on Bridge Street are now renting. Hundreds of new residents will bring millions of dollars of
spendable income to downtown. Clocktower Place is moving forward with plans to convert the Picker
Building to 60 units of new housing and with plans to construct, from the ground up, 60 more units of new
housing in the Millyard.

Through the work of Paul Shea, Ben Ruddock, Cheryl Lindner and others from Great American
Downtown — and the active support of the Downtown Improvement Committee — we have new vitality
and activity downtown, including summer outdoor music festivals, a summer dance party, new holiday
lighting, Main Street pianos, an expanded farmers market and many other activities. We have seen new
and exciting businesses open and succeed in our downtown - including JajaBelle’s, Camaraderie, the
Flight Center, Aerial Moon Yoga, and Fuego to name a few. The Tailspinner Brewing Company will soon
be opening on Factory Street and Gauchos Brazilian Steakhouse is opening on Elm Street. WineNot
has expanded and moved to a larger location on Main Street.

Two years ago, we began developing a riverfront master plan for the downtown segment of the Nashua
River. The plan, which is now complete, includes continuous riverside walkways connected to Mine Falls
Park, enhanced access to the waterfront, and new green spaces and landscaping. We are beginning to
make long-term investments so that our downtown waterfront can be dramatically improved in its look
and feel and so the potential of this gem can be realized.

The plans for a performing arts center on Main Street are also moving ahead. This past November, we
asked the voters whether we should undertake this project, and their answer was “yes.” Once the
performing arts center is up and running, we will bring tens of thousands of people and millions of dollars
to Main Street and downtown.

/
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» Workers’ Compensation Coverage according to Statute of the State of New

Hampshire:
$100,000 / $500,000 / $100,000

The City of Nashua must be named as an additional insured on all liability certificates.

All bidders and subcontractors at every tier under the bidder will fully comply with NH RSA Chapter 281-
A,

‘Workers’ Compensation”. It is the responsibility of the CONTRACTOR to submit to the OWNER
certificates of insurance for the Designer and all other subcontractors prior to the start of the project. It
is the responsibility of the CONTRACTOR to provide the OWNER with updated certificates of insurance
for the CONTRACTOR and all subcontractors 10 days prior to the expiration of coverage. The OWNER
may, at any time, order the CONTRACTOR to stop work, suspend the contract or terminate the contract
for non-compliance. All subcontractors except for Designer are subject to the same insurance
requirements as the CONTRACTOR,

The successful bidder will be required to post a 100% Performance Bond and a 100% Payment Bond in
an amount equal to the Contract Award.

Pursuant to NRO 5-71 (A), the City of Nashua supports the concept of purchasing products which are
biodegradable, can be or have been recycled, or are environmentally sounds. Due consideration will be
given to the purchase of such products. If you are bidding on any such products which qualify, please so
indicate in a cover sheet by item number and description.

The City is exempt of all taxes. All bids must be FOB Nashua, NH. All bidders must comply with all
applicable Equal Employment Opportunity laws and regulations.

Pursuant to NRO 5-78 (F), the purchasing manager shall not solicit a bid from a contractor who is in
default on the payment of taxes, licenses or other monies due the city. Therefore, this bid request is

void as to anyone who is in default on said payments.

Respectfully,

4 op
i Pir —

an Kooken
Purchasing Manager
City of Nashua
KookenD@nashuanh.gov

RFPO609-031116 LED Street Lighting Conversion Project

Board of Aldermen — 2/20/18 Page 3

After all, the arts are a significant part of the country’s economy, constituting 4.2 percent of the US gross
national product — more than tourism or agriculture. Nashua needs to take greater advantage of the
economic benefits we can enjoy from an expanded arts scene. Nashua is fortunate to have one-of-a-
kind arts organizations and music venues. Positive Street Art and the International Sculpture
Symposium have brought new beauty to many corners of Nashua. The Riverwalk Café brings premier
musicians to Nashua in a cutting-edge downtown venue. | was proud that the City of Nashua won the
State Arts Commission’s Creative Community Award for being a hub of the arts in New Hampshire.

Attacking the Opioid Crisis

Two years ago we were facing the worsening national opioid crisis. Firefighters and EMTs were
responding to 911 overdose calls, and treatment professionals were working to get and keep people in
recovery. But we had no coordinated citywide strategy to attack this public health crisis. Now we have
taken action and developed a coordinated community response to the epidemic, and we are constantly
working to improve our plan of action.

In November, 2016 we started Nashua’s Safe Stations program to which over 1,400 people have
responded — people seeking to turn hopelessness into recovery. Thank you to NFR and our firefighters,
AMR, Harbor Homes, our hospitals and Public Health who have joined together to make this program
work. The number of 911 emergency overdose calls is down 24%. We still have tragic overdose
fatalities; one death is too many. But we are not seeing rising numbers of fatalities as there have been in
some parts of the country stricken by opioids.

Our Safe Stations program is one that is being used as a prototype elsewhere. The Mayor of Providence
cited Nashua’s successful Safe Stations program as the model for the similar program they launched this
year. The Nashua Police Department is getting drug dealers off our streets. The Police Department is
making almost 800 drug arrests per year, and Nashua has gained a reputation of being a place where it
is hard to sell heroin or fentanyl.

In early 2016, | launched the multi-disciplinary Mayor’s Opioid Task Force, which is working with Jan
Valuk and the Nashua Prevention Coalition to strengthen prevention efforts with our young people, and
with Greater Nashua Mental Health and others to expand treatment options. Just last month, we started
a pilot program of peer-to-peer recovery coaching with Jessica Parnell and Revive, a new recovery
center that opened last summer at 263 Main Street. Peer-to-peer coaching improves success rates for
people who are in recovery but still in the grips of the serious brain disease of addiction, which lasts long
after sobriety is achieved.

But we cannot be complacent. Harbor Homes is providing medical detox and treatment options,
including medication-assisted treatment, for those reporting to Safe Stations. These Safe Stations-
related treatment programs cost a lot of money and are currently causing Harbor Homes to suffer a
deficit of $400,000. Dave Mara, the state’s Drug Czar, attended our Safe Station’s breakfast last week
and understands the importance continuing the Sate Stations program. More support from the State of
New Hampshire and from Medicaid would be a huge help.

Board of Aldermen — 2/20/18 Page 4
Involving Our Citizens

Another goal of mine is to include more citizens in our city government. | have appointed dozens of
people to city boards and commissions, from the Planning Board to the Cultural Connections Committee.
Last year | announced that we would be offering a new Nashua City Academy, a multi-week course that
educates Nashua citizens about city government. | am happy to say that we graduated our first class
last June, and we are looking forward to welcoming 50 new citizen-students to our second City Academy
next month.

Making Smart Investments in Our Infrastructure

Nashua is making smart and strategic investments in our infrastructure — investments that benefit
everyone in every neighborhood. We need and deserve an infrastructure that is efficient, effective and
accountable to the people who pay for it. To maintain the quality of life we deserve, let’s repair the
streets and roads that are crumbling and modernize our sewage treatment plant and sewers. But we
must do this in a smart, strategic way so that we get what we pay for.

Potholes have been a serious problem this winter, and not just in Nashua. Some of our streets like
Kinsley are in bad shape. The combination of record cold temperatures, repeated freezing and thawing,
a lot of rain, and the poor condition of many streets have all contributed. The Street Department is
sending out numerous crews to fill potholes and they have filled over 2,000 potholes so far this winter.
Before | became Mayor, Nashua was only paving about 5 to 6 miles of its 300 miles of streets each year.
In order to help Nashuans from all neighborhoods, we have adopted a $37.5 million Paving Plan of
Action. Over 5 years we will dramatically improve the condition of Nashua’s streets. We have rated the
condition of all streets using real data and fact-based analysis. In 2017 we paved and crack-sealed 30
miles of streets. In 2018 we will do a lot more. We have made major improvements to the sewage
treatment plant after years of neglect. Also we will be rebuilding the red-listed bridge on Canal Street
near BAE.

For the residents in the Broad Street neighborhood and for drivers throughout Nashua, this last July, we
improved the intersections at Charron Avenue and Whole Foods/Turnpike Plaza. Enabling left turns
eliminates unnecessary waiting time and makes travelling around the city easier for thousands of
Nashuans. In the South End, especially at Exit 1, we have a problem with traffic congestion. For
residents of South Nashua, we have initiated discussions with the State DOT about the possibility of new
on and off ramps on the southbound lane of the Everett Turnpike at Gateway Hills. This is a long term
project, but we are committed to making it a reality in order to improve travel times for Nashuans in our
South End.

Being Careful with Our Tax Dollars

Since | have been Mayor, we have passed two budgets that have maintained and improved the quality of
schools and other services while keeping annual tax increases under three percent. And we have done
this despite a $2 million increase in the city’s mandatory contribution to the state pension system and
major increases in other fixed costs.

Board of Aldermen — 2/20/18 Page 5

But | want our budgeting to be accountable to the people who pay the bills, so | am announcing tonight
that this year | will be proposing the FY 2019 budget in mid-March rather than mid-May, two months
earlier than city budgets of a few years ago. This will give the Board of Aldermen and our citizens
additional time to examine and comment on our budget. The budget | will be proposing will be fiscally
responsible and will maintain the quality of the services that Nashuans rely upon.

The Challenge of State “Downshifting”

One of the city’s biggest budgetary challenges remains downshifting by the state legislature. It seems
that whenever there is a budget problem or wish at the state level, the solution is to impose additional
costs on or to reduce revenue to cities and towns. We call this “downshifting.” In order to control
property taxes, the state government needs to be a better partner of cities and towns. There are many
examples | could give you, but a big one is the cost of pensions for city employees. The city’s
contribution to the state-mandated and run pension fund has increased from $8 million to $23 million
over 10 years. The main causes for this increase are the state’s mismanagement of and recapitalization
of the pension system, and the state’s decision to breach its commitment to pay 35% of the annual
pension costs for municipal workers.

There was just a bill in the legislature, HB 413, that would partially make good on the state’s obligation by
funding 15% — as opposed to the original promise of 35% — of municipal pension costs. This initiative
would save Nashua taxpayers $3.4 million per year. However, the House voted by 6 votes to kill the
15% initiative, and then a reconsideration motion failed by a single vote. A majority of Nashua legislators
voted for HB 413, but | am sorry to say that some of our own representatives voted against the bill. If our
own delegation had voted unanimously for HB 413, it would have passed by 10 votes. The defeat of the
15% initiative means higher property taxes for all Nashuans.

Our Schools Are Critical

We cannot talk about the state of our city without recognizing the importance of our schools. Families
must have confidence that their kids will get the education they need to succeed in life. Employers need
to Know our graduates have the skills to perform in the workplace. Last fall, we opened full-day
kindergarten for 5-year-olds at all twelve elementary schools. And our students are excelling. In Nashua
we have more students acing Advanced Placement courses than in any other community in New
Hampshire.

Elm Street Middle School teams dominated the recent New Hampshire robotics tournament. The
Nashua South Math Team has been New Hampshire SMASH math champs for 9 years in a row. Main
Dunstable’s Destination Imagination Team — an afterschool activity that builds STEM skills — advanced to
the global finals. Nashua South won Public TV’s quiz show the Granite State Challenge two years in a
row.

We also have new direction, stability and purpose in our schools. Two years ago, our top three
professional school leaders departed, leaving those vital positions vacant. We now have Dr. Jahmal
Mosley in place for at least the next four years. Dr. Mosley is bringing strong leadership and direction to
our schools, and | am confident that he will take our schools to new heights.

Board of Aldermen — 2/20/18 Page 6

We have the chance to take another critical step in ensuring excellent education for every student in
every school — a four-year teachers contract that makes significant progress toward fairly paying our
teachers for the critical work they do in our classrooms. This contract will help stem the ongoing out-
migration of trained, seasoned teachers to neighboring districts, like Hollis-Brookline, Amherst and even
Manchester for the higher pay those districts offer to mid-career teachers.

We're improving our school infrastructure, too. We have invested in school safety. We completed
extensive renovations at Sunset Heights. In September, we cut the ribbon for the new playground at Dr.
Crisp. Our youth soccer and lacrosse leagues continue to grow, and we are actively working to meet
that demand. For our young athletes we completed two new fields near Charlotte Elementary. We will
finish a third field later this year.

A New Summer Jobs Program

For our young people, one goal is to create opportunities and expand horizons. A summer job can be a
transformative experience. | am announcing tonight that this coming summer we are beginning a new
city youth jobs program for Nashua high school students. Students will work in a variety of city
departments from Economic Development to Public Works. These young people will learn skills and
gain experience that will help prepare them for college, careers and adulthood.

Our First Family Day at Holman Stadium

| am also announcing tonight that for our kids and families we will be holding the first Family Day at
Holman Stadium this coming May 12. Varsity baseball players from Nashua North and Nashua South
will hold a clinic on the fields at Coach’s Corner for all the kids who may want to play baseball.
Combined with a family picnic, this should be a wonderful day at Holman.

Empowering Our Neighborhoods

Improving educational results for our kids, strengthening families and empowering our neighborhoods will
not only improve the quality of life for many Nashuans, but will also help make Nashua more resistant to
the scourge of opioids and more able to meet the needs of our businesses for well-educated, well-
prepared new employees.

In my last State of the City address, | told you that we were going to form a partnership to meet a
growing need — hungry kids who go home without knowing if they will have enough to eat. Fact-based
research shows that feeding hungry kids gets results; hungry kids cannot learn effectively. So, in our
Crown Hill neighborhood, home of the Dr. Crisp Elementary School, we formed a partnership including
the Nashua Soup Kitchen and Shelter, Southern New Hampshire Services, Dr. Crisp, the Salvation
Army, End 68 Hours of Hunger, and others. We called our program Nashua Meals for Kids. In July, we
began providing meals at different sites in Crown Hill. By the end of the summer, we had served over
7,000 meals to neighborhood children. Meals for Kids is ongoing and is now helping with evening and
weekend meals.

Last fall, we opened our Arlington Street Community Center at the freshly painted, carpeted, and
furnished Crown Hill Fire Station building located next to Dr. Crisp School. The idea behind the center is
to bring services that exist in Greater Nashua into the neighborhood and closer to the children and

Board of Aldermen — 2/20/18 Page 7

families. The community center was developed under the direction of the MBK board, which includes
representatives from many organizations: the Nashua School District, YMCA, Boys and Girls Club, the
Adult Learning Center, Lamprey Health, United Way, Nashua PD, Nashua PAL, Maverick Technical
Institute and various city divisions. Our Building and Risk Management Departments also dedicated
many hours to this project.

The community center is already alive with activity: an Early Learning Readiness program, teen
leadership groups, yoga, story time and puppet shows, ESL classes and more. Our aim is to bring about
a healthier, better connected, more striving and thriving Crown Hill neighborhood with stronger families
and improved student learning.

Our Age-Friendly City

In our inclusive city, one of the most pressing concerns for our seniors is property taxes. | am proud to
say that Nashua is New Hampshire’s most age-friendly community. We offer the largest senior property
tax credit of all the cities and towns of our state. The city also provides strong support to our Senior
Activity Center. Alderwoman June Caron and City Treasurer David Fredette are active on the board of
the center. | am looking forward to our first senior cookout, which the city and the Senior Activity Center
will be holding at Holman Stadium this summer.

More Affordable Homes for Young People and Families

For the young people and young families who are building the Nashua of the future, we need additional
housing options. Certainly many in the millennial generation will find the hundreds of new apartments in
the downtown mill conversions an attractive choice. However, we also need more choices for those
young families who want to own a home but cannot afford the $400,000 or $500,000 price tag carried by
many of Nashua’s new single family homes. We need to encourage the development of smaller homes
of 1,000 to 1,200 square feet on smaller lots that our young families can afford. Right now, such houses
are being built under density bonuses that are awarded to senior-only housing.

Tonight, | am announcing that | will propose to the Board of Aldermen, and to the Planning and
Economic Development Committee, chaired by Alderwoman Melizzi-Golja, a change in our zoning to
allow people of all ages, including young families, to buy in density-bonused developments of smaller
homes.

Commuter Rail for Nashua

We are also working to bring commuter rail to Nashua. Our preferred approach has been the proposed
Capitol Corridor Project, which would have established another transportation link to Boston, the engine
of New England’s economy. Amazon’s requirement of accessible commuter rail in its search for a
second headquarters shows how important rail is to 21* century businesses and employees. In 2016,
the legislature stopped the Capitol Corridor project. But in Nashua we didn’t give up.

So, we began working with the Boston Surface Rail Company to try to establish a privately-funded and
privately-run commuter rail service to Lowell and Boston. There are a number of obstacles to overcome,
but we are optimistic that this P3 could bring rail service to Nashua.

Board of Aldermen — 2/20/18 Page 8

The Nashua-Manchester region generates 35.1 percent of New Hampshire’s gross state product.
Investing in Nashua’s infrastructure will help build the state’s economy, make New Hampshire more
attractive to employers, and grow state tax revenues. Our message to the legislature should be —
paraphrasing Jerry Maguire — “Help us help you!”

Building a Greener Nashua

| also want to focus on our green initiatives. Last year, the city completed the buyout of the lease of the
Mine Falls Dam, a three-megawatt source of renewable energy. We also own the one-megawatt Jackson
Falls Dam. Together these dams will generate 5 million dollars in profit for the city over the next 10
years. We have completed the conversion of street lights to LED bulbs which will save 2.5 million dollars
in energy costs over 10 years. Just a few months back, we put eight new Compressed Natural Gas
buses on the road. These CNG buses will transport over 500,000 riders per year, and they produce
twenty to thirty percent less greenhouse gas emissions than our old diesel buses. We have formed an
Environment and Energy Committee whose engaged and committed members are working to develop
green initiatives for the city. We expect to bring forward some exciting opportunities during this coming
year.

Thank You to Nashua’s Involved Citizenry

The progress we have made is ultimately because you, the citizens of Nashua, have been active and
involved. Thank you for joining boards and commissions, for participating in town hall meetings and
coffee hours, for sharing your dreams and ambitions for our community, for attending downtown music
festivals and other events and patronizing downtown restaurants and businesses, for pitching in during
clean up days in Mine Falls Park and along the rail trail and the riverwalk, for putting on Santa in the
Park, for attending the City Academy, for volunteering or contributing to local non-profits. Thank you to
all for your dedication to Nashua and for believing in the power of Nashua’s potential.

And thank you to the 2,800 city employees who work every day to make Nashua a great city — our
firefighters, police officers and teachers, the employees who fix, patch and plow our streets, collect the
trash and recycling, care for our parks, playgrounds and green spaces, and the staff who work in public
health, in the public library, and in City Hall.

| look forward to working with all of you — with thousands of Nashua residents and employees — to
continue building a city that is welcoming and warm-hearted, inclusive and innovative, compassionate
and confident. Thank you to the great city of Nashua, and God Bless.

ADJOURNMENT

MOTION BY ALDERMAN WILSHIRE THAT THE FEBRUARY 20, 2018, MEETING OF THE BOARD
OF ALDERMEN BE ADJOURNED

MOTION CARRIED

The meeting was declared adjourned at 7:34 p.m.

Attest: Patricia D. Piecuch, City Clerk