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Special Bd. of Aldermen — 06-25-2019 Page 13

| don’t think we should categorize this as a motor vehicle. Otherwise, what about all the stuff that Mr. Shafer has
raised, the Segway, the E-Bike, the Electric Wheelchair, | mean how is that different from this. What if it goes 10
and this goes 15 and we are going to say well they can’t? So | think it requires a little more discussion.

President Wilshire

| think it doesn’t require any more discussion.

Mayor Donchess

Later, | meant later, not right now.

President Wilshire

No | understand Mayor. But we have two other meetings and we need to move on. Thank you Mr. Briggs for
your presentation this evening and we look forward to a really good resolution to have these out there. Thank
you so much.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN TO ADJOURN
MOTION CARRIED

The meeting was declared adjourned at 7:26 p.m.

Attest: Patricia D. Piecuch, City Clerk

VeoRide — Nashua, NH Scooter Introduction
6/25/2019

Board of Aldermen Page 20
April 12, 2016

President McCarthy

Which meeting are you referring to?
Alderman Deane

The meeting we had upstairs about Burke Street.

President McCarthy

| actually wanted to attend that but | was out of town at a conference.
Alderman Deane

| think you ought to watch it.

Alderman Wilshire

| thought last Thursday’s meeting was very good. | wanted to thank President McCarthy for inviting the
Science Café panel in for the discussion on opioid’s last night and also Alderman LeBrun for his input on that.
It was beneficial for our citizens to see and hear what is going on.

President McCarthy

| would thank both the panel and Alderman LeBrun for their contributions. If nothing else, it is completely eye-
opening as to the magnitude of the problem that we are facing. If members of the Board have any ideas for
other groups that you would like to get in to talk to about that, | think it is probably something that; | mean |
certainly don’t believe that | Know enough about it to act coherently with respect a solution and | suspect some
of my colleagues feel the same way. Whatever we can do to educate the Board and to get solutions | would
be happy to hear them.

| want to extend my condolences to the family of Marvis Mellon. She passed away about 1 % weeks ago and
you will have noticed evidence of her public service earlier this evening when her name was called during the
Joint Convention of the Cemetery Board of Trustees. She served on that Board for years and she also served
at the Chairman of the Historical Society for quite a while. | had the pleasure of working with her on some
issues when | was first on the Board and she will be missed as a member of the Nashua community.

Alderman Lopez
| wanted to add that the Science Café was interesting and it was a very specific presentation and perspective
and | think it would be helpful for the Board to hear from people who specialize in recovery and addiction. The

presentation we had really focused on pharmacology and | think there are other elements of the issue that
should be looked at.

President McCarthy

If you can suggest the groups who we might want to talk to, | will try to arrange those.

Alderman Lopez

| would be happy to.

VeoRide eScooter: Parking and Safety Enhancements

Parking Enhancements

Actively Managed No Park Zones
VeoRide enforces no park zones

Scooter Display Parking Indicator
Displays no-parking zone or a
preferred parking zone on
350W REAR-DRIVE
scooter and app MOTOR

Allows for rideability up

Horizontal Detection Sensor 10% grade incline

Notifies the User if scooter is
lying on its side; local staff if
scooter is on its side, blocking
walkway

Integrated Chassis Lighting System
Rewards Active safety measure for low-light
pedestrian and automotive awareness

“Carrot and Stick” Parking

Provides incentives, warnings and
fines for Users to park properly

Safety Enhancements

10-inch wheels; Larger Platform
Bigger wheels and platform provide
more stable control

No-Ride Zone Shutdown
Shuts off electric power if ridden ina
no-ride zone

Dual Braking System
Equipped with brakes for both front
and rear wheels

Swapping Extended Battery
Battery maintenance by VeoRide staff;
higher low-end torque for hills

Quality and Safety Tested
eScooters have passed the most
stringent US consumer products testing

OO HEC OOS esis—saMeesS—~—‘“

Complement to Existing System

The existing service area will remain the same, bikes and scoot
will operate under the same rules. Please practice safe and
proper riding and parking practices.

xsF

Whip-Poor
@ Golf Club He

TOTA)

he River Casino

9 Woodlawn Cemetery

ao VeoRide

Special Thanks to Mayor Jim Donchess and
Julie Chizmas for their ongoing support.

Questions?

A special meeting of the Board of Aldermen was held Monday, June 24, 2019, at 7:00 p.m. in the
Aldermanic Chamber.

Vice President Michael O’Brien presided; City Clerk Patricia Piecuch recorded.
Prayer was offered by City Clerk Patricia Piecuch; Alderman June M. Caron led in the Pledge to the Flag.

The roll call was taken with 10 members of the Board of Aldermen present; Alderman Wilshire, Alderman Gidge,
Alderman Harriott-Gathright, Alderman Jette and Alderman Clemons were recorded absent

His Honor, Mayor James W. Donchess and Corporation Counsel Steven A. Bolton were also in attendance.

President Wilshire turned the meeting over to Alderman Dowd, Chair of the Budget Review Committee,
to conduct the public hearing.

PUBLIC HEARING
R-19-142

AUTHORIZING THE MAYOR AND CITY TREASURER TO ISSUE BONDS
NOT TO EXCEED THE AMOUNT OF SIX MILLION TWO HUNDRED THOUSAND
DOLLARS ($6,200,000) FOR VARIOUS IMPROVEMENTS TO THE JACKSON MILLS
AND MINE FALLS HYDROELECTRIC FACILITIES

Vice President O’Brien

So that the rest of the Board knows | did hear from Alderman Wilshire and Alderman Gidge, both are on
excused absences due to illness. Tonight’s meeting will be a Public Hearing on R-19-142. | am going to call
on Sarah Marchant to give us a brief overview of R-19-142. There is a little presentation to hopefully explain it
better. Would you like to come up, however you can see best, my seat is available.

Sarah Marchant, Director Community Development gave a brief overview of R-19-142 before the Board heard
public testimony.

Ms. Marchant

Good evening, thank you very much. | have just a few slides and | will go through them quickly. If you have
questions, I’m more than happy to answer them. | have more information but | didn’t want to overload with
data. | am here to talk to you about our two hydroelectric facilities. A very, very brief history is that we, the
Jackson Mills Hydroelectric facility which is part of the Margarita’s Restaurant, you can actually enjoy a
beverage on the deck that is directly about our hydro plant was returned to the City’s ownership as of January
of 2015, it was December 30" or something like that. So we didn’t pay anything for it; there was originally a
lease. The City was part of the original construction, the hydro, the entity who was running it had a lease for
30 years. The lease ended it and suddenly we had a dam. And so that one we didn’t pay anything for. But we
have a 35 year old facility that is in need of some upgrades.

The second dam was the Mine Falls Dam, that was built about the same time. During the early ‘80’s there was
a lot of money through FERC who put in hydro facilities and that one was built at the same time. That had a
buyout provision so that the City had the opportunity to buy it out at a preset rate which we did exercise in April
of 2017. We paid just over $4 million dollars for the Mine Falls Dam at that time. We did a lot of studies, a lot
of work on it. We did a complete evaluation before we purchased that dam, we have a whole lot of, somewhat
of a mini-CIP if you will of wnat we knew needs to be invested, how we need to, what things needed to be
upgraded, what things don’t and how we can move forward with that one.

Another big different between the two dams is Jackson Mills is one megawatt and it is actually has an
exemption from Federal Licensing, from the FERC Licensing Process. So we can operate that without having
to get a license from FERC that has to be renewed every so often. The Mine Falls Dam is a 3 megawatt

Special Bd. of Aldermen — 06/24/2019 Page 2

facility and that one does not have a license exemption. So the license, we also knew about as part of this
process, is going to expire in and I'll talk about that on the next slide | think, in 2023. So that is driving a lot of
this. When the City acquired both dams, we put an RFP out and we have hired an operator who has been
operating them daily for us, Essex Power Services.

So | am just going to go through what the revenue has looked like since we brought both of these one. The
green line is the total revenue; you can see the revenue numbers on the side and the years. Jackson, we
started halfway through the year of FY16 so the total revenue produced versus the operation and maintenance
is the red line and repairs. And then the net revenue is the balance of the two. You'll see on the Jackson, the
very drastic red and purple lines in the opposite directions. Since we have had Jackson again 35, you buy a
35 year old entity that needs some repair, or we didn’t buy it we were given it and it needed repairs. The
turbine has been down twice; once for 3 months this Fall and 6 months last year. So those repairs have been
very costly and they’ve also lost a lot of time where we are not operating, therefore we are not making money.
So that is some of the big problem here; but overall it has been a net positive experience.

In 2016 total net income was about $46,000.00 for the 5 months. FY17 $105,000.00; FY18 was negative
$178,000.00 as we put so much into repairs. And FY19 so far, even though we have been down for 3 months,
we have had so much water we are at a positive of almost $300,000.00 at the moment. So that’s kind of
where we’ve been with revenue there, net revenue.

So Mine Falls, again we bought in the Spring on ’17 we do have one turbine down now, it went off-line in
March maybe. But we have two turbines at Mine Falls and they don’t both run at the same time all the time.
They both run only at very high water; usually we run one and bring the other one in. So one has been down,
the other is still running. The revenue at Mine Falls is significantly higher and repairs, while they peaked a little
bit first buying it, we knew we had some initial capital, we have a longer term plan to do those investments over
time. This is very much a revenue generator so as general in 17 for the short year a total net revenue was
about $140,000.00. Last year we are $700,000.00 in the positive and so far this year we are at $600,000.00
and there is quite a bit more | think to come in because of the delay and how that works.

So | am here before you to ask for a bond for the improvements that we know are coming. We are trying to be
proactive at Jackson and not have emergency shut downs and expenditures that are unbudgeted for. With the
spending cap as you all know it’s very hard to just say well |’ll just need an extra $400,000.00 this year or |
need an extra bit this year. So we are working with Essex Power and HL Turner, who is the hydro experts, we
have put out an RFP for a new turbine at Jackson. Jackson is a very, very unique situation; there is no other
hydro-facility anywhere in the whole world that is exactly like that. It is a custom-made turbine that’s there right
now. So it’s not like we can say we just want to buy that kind off the shelf and let’s pop it in. And going out to
bid for this turbine this spring we have had four responses from some companies, you know, from all over the
world. It is unique; the costs are ... it’s just an expensive proposition. So about $4 million dollars of the bond
before you is for the new turbine at Jackson and not just the purchase, but all the engineering and the actual
fabrication and installation. It is, again, built into the side of a functioning restaurant and building; it is not the
easiest place to do major work on. We do have that beautiful crest gate which gives us a lot more control but it
is a major, major proposition and it is expensive and unique.

At the same time, the fish ladder which is probably the biggest part of the dam that you see; it is the big
wooden piece that goes back and forth. That is literally how the fish climb the ladder to get up. It is also 35
years old so there are some other things that as we upgrade the turbine it might change some flows so those
things, we’ve tried to pull all that together. We are talking about the improvements that have to be made there.
So this is a process that will take about 18 months from once we pick something to design, fabrication and
installation. So it is a big process and that’s why we’d like to get started before it breaks again so that we are
further along so we are not off-line for say 18 months or two years. So we keep running until we have it all
fabricated, we hope, that’s the goal.

Special Bd. of Aldermen — 06/24/2019 Page 3

In addition, even though it isn’t subject to Federal Licensing, we do get it inspected every year and because of
the age of the facility, just like when you buy a really old house, the home inspector comes in and says “Oh
you’re going to need to upgrade some of these things, some of these wooden components like the fish ladder
need to be upgraded a bit”. And also the fish species that we are most concerned about passing every year
has changed since this was first installed. We used to be really concerned about salmon but we have now
accepted the fact that we are never going to have salmon again and so now we are very concerned about
herring and eels and so they need slightly different things. So being able to modify everything to make sure we
are in compliance is important.

At Mine Falls one generator is down and we are doing a complete rehabilitation of it. There are some other
things when that goes off line that you fix if you are fixing things and you have a giant generator out of the way
you are going to fix those things while you can. But most of the bulk of the money that would go for Mine Falls
is the other repairs in that CIP that we have listed out for the next 5 years and all these licensing studies that
are required by the FERC License. The FERC re-licensing process is 5 years; we started last August with our
pre-application document and from that document FERC came back and they have requested 9 studies that
we conduct as the next phase. And we from these different, well US Fish & Wildlife, The National Marine
Services, NH Fish & Game, NH DES together requested nine studies. We have put out an RFP, we are
bringing on a specialist firm to help us conduct these studies. We are not fish specialists. We are going to
start negotiation on what those studies will and will not include. But these are studies that will cost a very
substantial amount of money over the next two seasons and so we need to be ready to do that so that is
included in this bond as well to keep us on track. | think that’s it. lm happy to answer questions if you have
more specific questions.

Vice President O’Brien

Just for a moment, tonight’s Hearing was supposed to be to receive testimony from the public. However |
know that many of us are on a tight schedule to be somewhere else. So we will open it up for brief questions,
but to remind you that it is also on the Budget Review Committee’s meeting, which is going to be immediately
following this. Director Marchant will you be available for the Budget Hearing as well?

Ms. Marchant

Yes.

Vice President O’Brien

So | will allow a limited amount of questioning.

Alderwoman Melizzi-Golja

Yes thank you. Director Marchant, in looking at the life of the bond that is being requested, what is the life
expectancy for the repairs that are being proposed.

Ms. Marchant

Excellent question. So the turbine, the new turbine and the rehabilitated turbine are expected to last another
30 years. The bond that is being proposed is a ten year bond, so certainly a lot longer than that. And the other
repairs that we are doing say fish ladder type repairs, all have those same kind of time frames associated with
them.

Alderwoman Melizzi-Golja

Ok thank you.

Special Bd. of Aldermen — 06/24/2019 Page 4
Alderman Laws

| was just wondering if the revenue generated from the Jackson is going to be included in the TIF for that area.
Ms. Marchant

That’s a great question, no. The revenue from that does not go to the TIF at this time.

Alderwoman Kelly

| just wanted to know if historically we Know what these would be at once they are at capacity because | know
both of them have been down for a while in terms of revenue generation.

Ms. Marchant

That’s a great question. So we look back at a 10 year average even though we didn’t own them, we have
pulled the FERC records to see what they have generated over a 10 year average. This past year has been
an incredible amount of water, incredibly high revenue which is a good thing in many ways, but it isn’t
necessarily an average. So we do believe that in an average flow year, that these would net a little under $1
million dollars, closer to $800,000.00, the two together.

Alderman Caron

My question is that money that we get from Mine Falls is that going to go pay off the bond?

Ms. Marchant

It goes to the General Fund but it certainly would off-set the bond costs.

Alderman Caron

Thank you.

Vice President O’Brien

And this may be a good segway, I'll let Alderman Klee make the decision, but currently the State is looking at
net metering which could affect this potential dam. I'll allow you a brief summation as to what is happening
right now.

Alderman Klee

It is being held off until this fall, it was vetoed by the Governor, as far as net metering was concerned to allow
greater than 1 up to 5 megawatts. | guess | would ask my question, are we exempt from the current net
metering of 1 megawatts?

Ms. Marchant

It's a great question. So at Jackson Falls we currently net meter. We get just under 10 cents a kilowatt hour,
right so 9.7 cents something like that . At Mine Falls we are not allowed to net meter. When we bought Mine
Falls it came with a longer term power purchase agreement that will expire in 2023, with our license as well
that we could net meter and we could make again almost twice, we were about 5.6 cents right now per kilowatt
hour at Mine Falls. So we could almost double our revenue at Mine Falls if we could net meter, which we can’t

do yet. But hopefully we are on our way there and it would make a very substantial difference in the amount of
revenue that we would be earning.