City Council

Minutes were approved by the Finance Committee on May 20, 2024. CITY OF LACONIA - CITY COUNCIL SUBCOMMITTEE MEETING FINANCE COMMITTEE 6:15 P.M. 10/23/2023 - Minutes 1. CALL TO ORDER Chairman Lipman called the meeting to order at 6:20 PM 2. SALUTE TO THE FLAG Councilor Cheney led the salute to the flag 3. RECORDING SECRETARY Katie Gargano, City Clerk 4. ROLL CALL Clerk Gargano called the roll of the following committee members: Councilor Cheney, Councilor Soucy and Councilor Lipman. Councilor Lipman noted that all committee members were present this evening and a quorum was established. 5. STAFF IN ATTENDANCE Kirk Beattie, City Manager; Glenn Smith, Finance Director 6. ACCEPTANCE OF MINUTES FROM PREVIOUS MEETINGS 6.A. City Council Finance Subcommittee meeting minutes of July 24, 2023 Minutes of the July 24, 2023, Finance Subcommittee meeting were distributed to members of the City Council Finance Subcommittee on July 31, 2023. With no corrections or changes submitted to the Clerk’s Office, the minutes of July 24, 2023, were accepted as distributed. 7. FINANCE (Lipman (Chair), Cheney, Vacant) 7.A. Acceptance of bond bid related to the purchase of a replacement fire engine and sanitary sewer system improvements The purpose of the bond is to distribute the net cost of the acquisitions over a twenty-year period. The net cost of both items is $3,935,000, with $3,000,000 committed for sanitary sewer system projects and $935,000 for fire engine replacement. Issuance of these bonds was approved by the City Council under Resolution 2023-24 (Fire Engine) and 2023-25 (Sewer System Improvements) on September 11, 2023. On September 18, 2023, a bid request was distributed to Bank of New Hampshire, Franklin Savings  projects and $935,000 for fire engine replacement. Issuance of these bonds was approved by the City Council under Resolution 2023-24 (Fire Engine) and 2023-25 (Sewer System Improvements) on September 11, 2023. On September 18, 2023, a bid request was distributed to Bank of New Hampshire, Franklin Savings Bank, Northway Bank, TD Bank, Meredith Village Savings Bank, New Hampshire Municipal Bond Bank (NHMBB) and Newburyport Bank. Bank of New Hampshire and Franklin Savings Bank filed bids for this project. Both institutions filed proposals for one bond covering both projects. TD Bank declined to bid, noting they do not issue bonds for terms in excess of 10 years. No response was received from Meredith Village Savings Bank, Newburyport Bank or Northway Bank. NHMBB filed a letter of interest outlining their upcoming issue. All responses provided for a fixed interest rate, annual principal payments and semiannual interest payments. Rate and fee information is summarized below. FSB BNH Rate 5.35% 6.85% Prepay Penalty None Not Specified Fees $500 (est.) None The project has been proposed for inclusion in the January 2024 issue of the New Hampshire Municipal Bond Bank. Interest rates for this issue have not been finalized. For purposes of comparison, the most recent NHMBB issue offered a rate of 3.65%. Fiscal Impact: Interest cost ranges from $1,508,000 to $2,830,248 over the 20 year life of the bond, depending on which institution is selected as the successful bidder. FY25 costs range from $143,627 to $269,547. Manager Beattie began the conversation explaining that they are looking to finance the sanitary sewer updates and the replacement fire engine. These items were approved by the Council and sent to the Finance Committee to explore the financing options. The replacement ambulances have not been approved by the Council yet, but when they do, it will go back to the finance committee for financing approval. Manager Beattie said that we would be looking to bond the ambulances separately because they have a shorter useful life. Councilor Lipman stated that ideally, we would bond all of these items together, regardless of the useful life. They can have varying amounts of useful life under one bond. Councilor Soucy asked for an explanation of combining the bonds, Chairman Lipman explained his interpretation. Director Smith said it wasn’t what he understood by the bond bank. Director Smith spoke about the timeline deadlines for the January issuance with the bond bank, if that is where they choose to go. Director Smith said he will ask the bond attorney and if they agree, he agrees this would be a great way to go, by lumping it all together. The ambulances have a useful life of 10 years, the other items have a 20-year useful life. There was a brief discussion about prior rates at the bond bank, it is anticipated that even with the change in the economy the bond bank will come back lower than the other two bids received from the local banks. 7.B. Review of RFP responses relating to replacement ambulances The City Council has previously discussed the need to replace two ambulances which are nearing the end of their useful life. The Fire Chief was instructed to solicit bids for replacement ambulances that would meet the EMS needs of the City and its residents. Responses to the RFPs have now been received and are ready for review by the Finance Subcommittee, prior to Council approval of bonding for purchasing of the two ambulances. Chief Joubert will be present at this meeting to  7.B. Review of RFP responses relating to replacement ambulances The City Council has previously discussed the need to replace two ambulances which are nearing the end of their useful life. The Fire Chief was instructed to solicit bids for replacement ambulances that would meet the EMS needs of the City and its residents. Responses to the RFPs have now been received and are ready for review by the Finance Subcommittee, prior to Council approval of bonding for purchasing of the two ambulances. Chief Joubert will be present at this meeting to provide additional information. Manager Beattie stated that the ambulances have gone through the RFP process. Chief Joubert handed out an outline of the best options for the purchase of two ambulances. The core criteria looked at was delivery time, maintenance options, safety factors, and price. The RFP with the quickest delivery time was 27 months. Some RFP’s didn’t have delivery times because they didn’t know. There was an RFP that was chosen had the most safety features and training for all employees, it offered a multivehicle discount, a pay in full discount. The price is $981,262.00 for 2 ambulances. There was a discussion about downpayment options, and the savings or loss the city would see by keeping the money in the bank and earning interest versus taking the pay in full discount. Councilor Soucy asked who the company was that the fire department chose, Chief Joubert said since it hasn’t been awarded yet, he’d like to hold off in announcing who the company is. There was a discussion on the procedures to be followed between the finance committee and the council to get this approved and to hold the appropriate public hearings. The finance committee recommends that the council approve the purchase of two ambulances and schedule a public hearing. After the approval, the finance committee will hold another meeting. Chairman Lipman recalled that the last time they bonded with the bond bank, a representative was at City Hall to assist with any questions. Director Smith said he would call the bond bank in the morning. 7.C. Discussion of Welfare Guidelines regarding potential changes Finance Director Glenn Smith has requested the subcommittee discuss some proposed changes to the Welfare Guidelines to reflect what is happening currently. He will be present at the meeting to provide additional information. Director Smith said they are looking to make a couple of changes based off what they are seeing in the community. What they are seeing is people who can’t make rent, they’d like to add. Unemployed people to do work searches to also do apartment searches but they also must do childcare searches. Add a requirement that people enroll in a personal budgeting class that is offered by the community to better educate people. Councilor Lipman would like to see that people who are experiencing health issues or short-term issues do not have to meet the new requirements. Director Smith agreed short term issues wouldn’t be held to the same standards. 8. Any other business that may come before the Committee 9. ADJOURNMENT Chairman Lipman adjourned the meeting at 7:03PM Respectfully Submitted, 9. ADJOURNMENT Chairman Lipman adjourned the meeting at 7:03PM Respectfully Submitted, Katie Gargano, City Clerk