Presentation of Findings Town of Hull, Massachusetts

Table of Contents Introduction Executive Summary Who is EMG? EMG’s Observations EMG’s Findings EMG’s Replacement Reserves Terms to Know Facility Condition Index (FCI) Executive Summary 5 Year Reserve Summary FCI Summary School Comparisons Facility Comparisons Capital Planning /Priorities School Priorities Facility Priorities

Introduction

Who is EMG Nationwide Track Record Offices 1. EMG is nationwide commercial due diligence and asset management firm which provides industry leading reliability, accuracy, and experience. 2. EMG is proud of a track record of over a million managed and completed projects across all 50 states. Since 1986, our team of environmental consultants, engineers, and project managers has provided thousands of highly satisfied clients with services around the life cycle of their facilities: from engineering and environmental assessments upon acquisition or financing, to capital planning and further to program and project management. 3. EMG’s Corporate Headquarters is located in Baltimore, Maryland with a secondary headquarters located in Arizona and two satellite offices in both California and Florida.

Scope of Services for Town of Hull Facility Condition Assessment (FCA) with MEP Inventory Asset Management Platform with Data Export to “SchoolDude” Preventative Maintenance Plan 1. EMG is nationwide commercial due diligence and asset management firm which provides industry leading reliability, accuracy, and experience. 2. EMG is proud of a track record of over a million managed and completed projects across all 50 states. Since 1986, our team of environmental consultants, engineers, and project managers has provided thousands of highly satisfied clients with services around the life cycle of their facilities: from engineering and environmental assessments upon acquisition or financing, to capital planning and further to program and project management. 3. EMG’s Corporate Headquarters is located in Baltimore, Maryland with a secondary headquarters located in Arizona and two satellite offices in both California and Florida.

3. Asset Management Platform The FCA Process Visualization of Needs Overall Condition/FCI Analysis Define Budget Prioritization of Needs Capital Planning Plan development Tracking Work Completed Deployment Interview Staff Data Collect Kick-off meeting Organization Setup Scheduling 1. Planning 2. Field Assessments 3. Asset Management Platform 4. Monitor Plan(s)

Terms to Know Expected Useful Life (EUL) Industry standard life expectancies. Effective Age Assessors’ professional opinion of an assets condition in terms of years as it relates to an asset’s EUL. Remaining Useful Life (RUL) Difference between the EUL of an asset and its assigned effective age. Short term considerations Assets whose effective age has either reached or exceeded their industry accepted EULs. Reserve Items A list of assets whose effective age has not yet attained their industry accepted EULs Current Replacement Value (CRV) Researched value to rebuild a facility.

FCA - Critical Data Points RUL Replacement Reserve Prioritization Capital Plan Cost Location Condition Quantity EUL eAge M/M/S So, we take all of this gathered data and place it into AssetCALC. Once we have identified all of these basic building blocks that makeup the observations/assets onsite, we process the information in a way which will allow us to view the data in a annual expression of needs. So, what does an annual expression of needs mean? What emerges is known in the industry as Replacement Reserves or Capital Needs tables. These tables

FCA – Typical Outputs Output Replacement Reserves Prioritization Systems and Conditions Table Facility Condition Index Capital Planning Work Completed

Sample Output - Replacement Reserves After all onsite data is gathered and the data is compiled for each facility, the resulting output is otherwise known as the Replacement Reserve / Capital Needs Tables. These tables calculate the overall needs of the facility and expresses those needs on a yearly basis for the length of a pre-defined term (10-years). These findings typically cover 5, 10, 12, 15, 20, 30 or 37-years and define the future needs for each facility throughout that term, in addition to any Short term considerations which may have been identified by the assessor.

FCA Output - Prioritization Building (100% weight) Component / System (10%) Plan Type (1,000%) Remaining Useful Life (1%)

Current Facility Weights - Priorities

FCA Output - Facility Condition Index Allows us to derive a single qualitative figure from a much larger and complex matrix of quantitative data.

Short term considerations A Single Number – FCI Short term considerations Current Replacement Value (CRV) Assessors' Objectiveness 1. After all of the data has been captured onsite and later compiled in AssetCALC (cost database) we are provided some key figures. These figures include the Short term considerations as well as the yearly Replacement Reserve Needs (RR). 2. To make these figures more useful, a standard industry approach has been developed to compare each of the above figures to the Current Replacement Value (CRV) facility. 3. These resulting percentages can be used to quickly and accurately chart a facility’s current condition as well as provide an easy to understand numerical value for a facility conditions. These percentages can also be used to forecast the future facility conditions when both the Replacement Reserve Needs are both met and/or left unabated. (Facility Needs) / CRV = FCI (%)

Facility Condition Index (FCI) What is the FCI percentage really telling us?

Executive Summary

Reserve Summary – 5 Year

FCI Summary

School Comparisons – Needs and CRVs

School Comparisons – FCI

School Comparisons – 3 Year FCI

School Comparisons – 5 Year FCI

Facility Comparisons – Needs and CRVs

Facility Comparisons– FCI

Facility Comparisons – 3 Year FCI

Facility Comparisons – 5 Year FCI

Capital Planning / Priorities

Top 10 School Priorities

Top 10 Town Facility Priorities

Minimum Funding Req. to Retain Fair Cond Minimum Funding Req.to Retain Fair Cond. Deferred all Costs thru Year 3

Minimum Funding Req. to Retain Fair Cond Minimum Funding Req.to Retain Fair Cond. Deferred all Costs thru Year 5

Minimum Funding Required to Retain Fair Condition at Year 5

10461 Mill Run Circle, Suite 1100 • Owings Mills, MD 21117 • www 10461 Mill Run Circle, Suite 1100 • Owings Mills, MD 21117 • www.EMGcorp.com • p 800.733.0660 Thank you for viewing If you have any questions, please contact Edward Beeghly, Asset Management Director with EMG at EBeeghly@EMGCorp.com or voice at 800.733.0660 ext. 7607