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  2. Finance Committee - Minutes - 1/19/2022 - P6

Finance Committee - Minutes - 1/19/2022 - P6

By dnadmin on Sun, 11/06/2022 - 21:40
Document Date
Wed, 01/19/2022 - 00:00
Meeting Description
Finance Committee
Document Type
Minutes
Meeting Date
Wed, 01/19/2022 - 00:00
Page Number
6
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_m__011920…

Finance Committee — 01/19/2022 Page 6

don’t really agree. That’s not really in the law anywhere. So | think the Legal Department kind of disagrees. They sort of
lean towards the previous position but as | review the law, it says you have to approve contracts but it doesn’t say you’re
limited — it doesn’t say why we would not approve them. So at least my reading of the situation is if the Finance
Committee refused to go forward, probably we couldn't proceed and the purchase contract whatever would not be
executed or the purchase not made. But you would create a legal issue.

Alderman Cathey

Right. So essentially if we were to vote no on items similar to this one, we’d have this money sitting around in the budget
and it would essentially be kicked back to either the Budget Review Committee or the Board of Aldermen as a whole and
then they would have to figure out what to do with either that money or how to procure a vehicle then is needed in the
budget?

Mayor Donchess

Yes so in this case, the only distinction | would draw is the CERF is a trust account so it sort of remain in this situation in
the CERF trust account but would remain unexpended until the Board of Aldermen decided what to do.

When | mentioned when | was on the Finance Committee, this is how the issue of the committee the appearance came
up. So what happened was there was the suggestion by Public Works that a 10 wheeler truck be purchased for the
primary purpose of plowing in the winter time. A couple members of the committee said well what about a 6 wheeler, isn’t
that a more versatile vehicle? The Mayor said well no it’s not. This is for the main roads — Amherst Street, etc., and the
10 wheeler works the best. The committee said well we’d like to hear that from the fleet manager. Well the fleet manager
is not coming in. Okay. We refused the purchase. Went to a couple of meetings and then the fleet manager did come
and the fleet manager said a 10 wheeler is actually better. The committee approved the purchase of the 10 wheeler. So
we took the position at that time that the Finance Committee had the right to turn down for any reason. But the
accommodation was to bring the guy in, he answered our questions, we approved it. So you would have created at least
a legal issue but there’s certainly an argument that you have a right to turn anything down.

Alderman Cathey

| appreciate you clarifying that. My main concern was when I’m thinking through these decisions | want to make sure that
| understand the second and third order effects of said decisions. Just because | like or don’t like something, | don’t want
to vote yes or no. I'd like to understand what happens with the processes so | appreciate you clarifying that.

Mayor Donchess

So for your own reference, the Finance Committee is defined by the City Charter. If you look to the City Charter, the role
of the Finance Committee is determined there. Then there are some ordinances which also set forth the role of the
Finance Committee. Read those. They're not very long. | forget where they are exactly. Read those.

Alderman Klee

It’s Section 5-90. That’s the authority of the Finance Committee and then 5-122 is the composition and duties thereof.

Mayor Donchess

So if you read those —| don’t see anything in there that limits the discretion of the committee.

Alderman Comeau

| don’t want to put words in your mouth so stop me if | get this wrong. My layman’s understanding of it was more or less
that if it’s in the budget, it’s that we’ve given this department or entity permission in a very general sense. So in this case
for this item, we might have said something like you have permission to buy a piece of equipment up to a sort amount of
money. With this specific piece that we’re talking about tonight is now they’ve done that thing that we gave them
permission to and we’re approving or not approving the very specific actual purchase of this specific piece of equipment
with an actual dollar amount.

Mayor Donchess

That’s one way of putting, yes.

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Finance Committee - Minutes - 1/19/2022 - P6

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