Budget Review Committee

BUDGET REVIEW COMMITTEE APRIL 30, 2014 7:00 PM Aldermanic Chamber ROLL CALL PUBLIC COMMENT COMMUNICATIONS From: David W. Deane, President, Board of Aldermen Re: Nashua Police Department Workload Assessment  Referred to Cmte – 4/22/14 From: Thomas F. Galligani, Jr., Economic Development Director Re: R-14-015: Approving a $100,000 Payment to Cotton Mill Square, LLC for Work on the Right Abutment of the Jackson Mills Dam UNFINISHED BUSINESS – None TABLED IN COMMITTEE R-14-015 Endorser: Alderman-at-Large Brian S. McCarthy APPROVING A $100,000 PAYMENT TO COTTON MILL SQUARE, LLC FOR WORK ON THE RIGHT ABUTMENT OF THE JACKSON MILLS DAM  Tabled 4/3/14 GENERAL DISCUSSION PUBLIC COMMENT REMARKS BY THE ALDERMEN POSSIBLE NON-PUBLIC SESSION ADJOURNMENT Board of Aldermen City of Nashua 229 Main Street David W. Deane Nashua, NH 03061-2019 President, Board of Aldermen (603) 589-3030 TO: Board of Aldermen FROM: David W. Deane, President, Board of Aldermen DATE: April 18, 2014 SUBJ: Nashua Police Department Workload Assessment Attached please find the Nashua Police Department’s Workload Assessment updated April, 2014. I look forward to discussing this at the upcoming Budget Review Committee meeting on April 30, 2014. Thank you. :sl attachment  To: Alderman David Deane, Chairman From: Thomas F. Galligani, Jr., Economic Development Director CC: Budge Review Committee Mayor Donnalee Lozeau Subject: R-14-015: APPROVING A $100,000 PAYMENT TO COTTON MILL SQUARE, LLC FOR WORK ON THE RIGHT ABUTMENT OF THE JACKSON MILLS DAM Date: April 15, 2014 Last September, the City of Nashua approved $100,000 to be provided to Cotton Mill Square, LLC from FY 2014 Escrows for the purpose of assisting with unexpected costs related to the Jackson Mills Dam improvement project. During the Budget Review Committee meeting on September 9, 2013, it was explained that more information and justification for the expenditure (engineered drawings, change orders, plans, etc.) would be provided. This memo and several supporting documents seek to provide background and justification for this request. Jackson Mills Dam Improvement Project Over the past three years, Cotton Mills Square, LLC (CMS) planned, permitted and constructed the first major improvement to the City-owned Jackson Mills Dam in 30 years. The central element to the project was the installation of an adjustable crest gate. The crest gate helps to minimize the impacts of flood events along the Nashua River in Downtown Nashua by allowing flood waters to pass over the dam. This improvement helps to keep upstream property from flooding, helping dozens of property owners from feeling the impact of flood events. CMS initiated and funded the project in order to remove the Cotton Storage Building from the 100 year flood plain, facilitating its restoration into 109 units of mixed income housing. The project also provides a much-needed structural upgrade to the 100 year old City-owned dam. In August of 2012, the City of Nashua signed separate agreements with Cotton Mill Square, LLC and Nashua Hydropower Associates (NHA) related to dam improvement project. Under the terms of the agreement with the City, CMS agreed to fund all project costs. CMS also pledged to reimburse NHA for all indirect and direct project costs (costs of staff to attend meetings, additional work NHA must undertake, lost generation revenue while the dam is off line, etc.). While the City of Nashua owns the Jackson Falls Dam, NHA maintains control over the Dam through a 30 year lease arrangement with the City. NHA operates the Dam, generates electricity and pays the City of Nashua a percentage of electricity generation revenue. When the lease with NHA expires at the end of 2014, the City will maintain full control over the Dam. Construction The HL Turner Company, the project engineer, designed and permitted the Dam improvement project between 2011 and 2013. Methuen Construction Company was hired in the spring of 2013, following a competitive bidding process. Construction began in July of 2013. City Hall, 229 Main Street PO Box 2019 Nashua, NH 03060 Phone: 603.589.3000 Fax: 603.594.3434 Nashuanh.gov | nashuadares.com In August of 2013, problems with the right dam abutment were uncovered. The right abutment was found to be 30 feet away from where all existing plans and exploratory testing had predicted. HL Turner notified the Federal Energy Regulatory Commission (FERC) and the NH DES Dam Bureau of the discovery. Both agencies sent representatives to the site to review the situation. They made additional recommendations related to shoring up the dam to a standard and scope beyond what had originally be approved by these agencies. This required that the dam be brought up to current standards. This significantly and unexpectedly increased total project related costs by over $200,000. CMS approached the City of Nashua about its willingness to share the cost of a remedy. After several meetings with City staff, the City agreed to propose limited funding to remedy the right abutment. A request for $100,000 was submitted and approved as part of the FY2014 Escrow process. City staff feels strongly that there is justification for this expenditure. These costs were unforeseen. A thoughtful reconstruction of the right abutment while the dam improvement project was underway creates a stronger dam that will be resilient for many, many years to come. This repair, combined with the improvements made as part of the dam improvement project adds strength and stability to this City-owned asset. To ensure that the work was done in a manner that was cost effective and long lasting, the City hired a Stephens Associates, a structural and hydraulic engineering consultant firm to review plans for the right abutment remedy developed by HL Turner. Stephens Associates were present at several construction meetings, reviewed plans and coordinated with the NH DES Dam Bureau and the FERC. Their advice led to a design modification that saved the project in excess of $40,000. Result and Documentation The work to the right abutment was completed as part of the dam improvement project. The work related to the right abutment was accomplished as part of three separate project change orders. The total cost of this is summarized below: Project Change Order #6 $68,319.14 Project Change Order #6A -$6,524.93 Project Change Order #7 $110,827.50 Project Change Order #8 $47,868.92 Total Cost Increase $220,490.63 A number of supporting documents have been attached to this memo. They are summarized below:  20130913 Budget Review Cmte Excerpt pages 7-9 discussion of Jackson Falls Dam.pdf—The relevant discussion related to the Jackson Mills Dam project has been highlighted. This was part of the discussion of FY14 escrows during the Budget Review Committee meeting.  Excerpts of Construction meeting minutes- Right Abuttment.pdf—This document contains excerpt from the weekly job construction meeting minutes for the Jackson Mills Dam. Only the right abutment 2  discussions have been included. This functions as a timeline of how this issue was discovered and how it was resolved.  Jackson Mills Dam – Demolition Report.pdf—This is a document developed by HL Turner and documents with words and pictures the progress of the demolition of the old dam during the month of August 2013.  SK7 – Right Abutment Drawing.pdf—The initial plan to resolve the right abutment issue was developed by HL Turner. This solution was not chosen.  Right Abutment Drawings.pdf—The revised plan to resolve the right abutment issue was developed by HL Turner. It shows the solution to the right abutment that was implemented. This solution was a direct result of feedback and brainstorming by the City’s reviewing engineer, Stephens Associates.  Right Abutment Training Wall.pdf—This is a subsequent plan drawn by HL Turner. It shows a modification to the final solution, as suggested by the NH DES Dam Bureau.  Project Change Orders 6, 6A, 7, and 8  20140221 letter from P Becht LH Turner – right abutment is complete.pdf—This is a memo from Paul Becht of HL Turner (the engineer of record) which certifies that the dam improvement project is complete, including the additional work related to the right abutment. 3 Budget Review – 09/03/13 Page 7 Attorney Bennett I guess that would be neutral then. Alderman Deane Were there parameters put down prior to negotiations being started? Attorney Bennett Not in the sense of the prior round of negotiations. There are always cost considerations that not only the mayor but the board of trustees are aware of. Some of the trustees‟ thoughts on this is that they have employees who are not the most heavily benefited employees in the city. They have a group of employees who did agree to the contract, to the increased premiums and deductibles prior to the st expiration of their last contract. In fact they are the only union, at least before July 1 , to agree to the premium increases. I think that was a consideration. They had been one of the unions that had actually paid the increased deductibles and co-pays since 10-1-11. While some other unions have agreed to go back there for the premiums, they were not subject to the increased deductibles until such time as their contracts were approved. They have been doing it as long as the merit employees have here at the library. Alderman Deane I‟m just looking at everything else as a whole. A 2.5 and a 3 percent over these two years is just deserved for stepping up and being pro-active in meeting the negotiating demands that were put out there. I guess we‟ll have to wait and see what the other employer boards bring forward. Attorney Bennett That I believe is one consideration. I believe there were other considerations for this proposed contract. Alderman Deane I am well aware of the fact that they are not highly compensated employees although they do run a good operation over there. I just wish something could be done with the outside of that building. The city has to take some sort of corrective action to try to deal with that. It‟s a good place. It‟s a good place for kids, a good place for everybody. People over there work hard. I don‟t go to the library much. My granddaughter does, my daughter-in-law does, my wife does, my son does. You look at the internet today and then you look at the library and there‟s still a need for our public library. Attorney Bennett Article 40, Duration of Agreement. That‟s two years. It runs from this July 1st until June 30, 2015. MOTION CARRIED R-13-138 Endorser: Mayor Donnalee Lozeau RELATIVE TO THE RE-APPROPRIATION OF FISCAL YEAR 2014 ESCROWS MOTION BY ALDERMAN MELIZZI-GOLJA TO RECOMMEND FINAL PASSAGE Budget Review – 09/03/13 Page 8 ON THE QUESTION Mayor Lozeau Before the committee tonight is our customary escrow requests. You will see the amount is pretty typical of what we‟ve seen in past years with the exception of 2011. Otherwise, it‟s about the same. I‟m happy to take a walk through them. Ordinarily we take a walk through the unlikes. If you‟d like, I‟m happy to do that and then the likes or vice versa, however the committee pleasure is. Alderman Deane I have a question. My question pertains to the new accounting system. I think prior to implementing it when the escrow request came through the different five-digit commodity codes were made part. Now it‟s only a two-digit where all the five digits are in there. It‟s already been combined into one. Say you had a five-digit that was tire and tubes for the fire department. Now it is, I forget what the commodity code is, but now all those five digits are all combined into say outside services. Mayor Lozeau They actually always have been, Alderman Deane. We‟ve always budgeted at the two digit. It‟s more noticeable now. Alderman Deane I disagree. Mayor Lozeau It‟s how it‟s been since I‟ve been here. There‟s a two-digit area. In that two-digit area there are multiple line items within it. We had more categories but that has changed based on best practices to have the system that we have which is the way accounting should be done. Mr. Chairman, if we‟re going to start with the unlike I would bring to your attention the $250,000 request for the gas collection system upgrade. Now you recall when we were doing the budget we had two items that we thought fell outside of the Spending Cap. One was the soil wall which is above it for 150. The other one was the gas collection system which our best estimate at the time was $250,000. When we learned that because we were paying cash and not bonding them that they would be subject to the Cap, we took it out of the budget. I told you that I would probably come during the escrow time with that. I wanted to let the committee know that our bid just came in. The number is actually $118,240 instead of the $250,000. That‟s a pretty good change here to the escrows. While I‟m talking about that I wanted to bring another item to the attention of the committee for consideration on how you would like to proceed, if at all you would like to proceed, which is separate and apart from these escrows. As you now the project on the Jackson Falls Dam has been ongoing for the past, I want to say at least three weeks that they‟ve actually been active, but we‟ve been working on it for a few years now getting to this point. There‟s good news and there‟s bad news. The good news is the dam is not going to fall down which I was a little nervous. It‟s a pretty old dam and I wondered how it held up over the years. They‟ve cut enough footage off of it to take a look inside. They had additional requirements all along on the project that had been pretty cost prohibitive. The good news is the dam is in good shape. The bad news is the embankment on the right side of the dam is not built as wide or as long as it should be for the dam that we have in place which we probably never would have discovered Budget Review – 09/03/13 Page 9 without taking the water down and doing this project. That cost associated with it is going to run somewhere between $60,000 and $100,000. One could make an argument that it shouldn‟t be a cost that the city bears because if this project wasn‟t happening we wouldn‟t have known it and we wouldn‟t have paid for it. I‟ve made that argument pretty effectively throughout this project when different things have come up. In this instance, I don‟t know that we can effectively make that same argument. The city owns this dam. It‟s a repair that probably should be made. It serves our interest as well. It really doesn‟t have anything to do with the crest gate. It would be good to have it there for the crest gate but it would be important to have it even if we didn‟t have the crest gate. It was my intention to get more information about that and maybe bring in a separate piece of legislation a little bit further down, a week or two from now. Because we have the savings here, I wanted to bring it to your attention because it‟s an opportunity to amend it and make it part of this legislation while you have it before you because it is escrow money that we‟re talking about. Or, I can bring it in on Friday as a separate piece to take up at another time. I wanted to put it out there so you were aware of it. I didn‟t want you to have to vote on it tonight if you preferred not to. It certainly can wait a couple more weeks if you prefer that as well. This is the first expense to the city for this project. As you recall early on when we talked about whether or not the city should contribute to this dam, I had raised the fact that we thought there was going to be a renegotiation for Clock tower of some of their mortgages and that the city was going to realize somewhere around $300,000 for that. I said if we did that I thought it would be reasonable for us to contribute that to the project because that‟s all in the same general area and money not coming from the operating budget. Finding this piece out at the end of last week, it seemed that it‟s not unreasonable for us to look at taking some responsibility for that part of the dam. I just wanted to put it on the table, Mr. Chairman. Alderman Wilshire Could you clarify for me again, Mayor, of the solid waste gas collection. The price to date is $118,240 and not the $250,000 that‟s listed? Mayor Lozeau Right. The bid just came in a week or two ago. We took it up at Board of Public Works, accepted the bid contingent on the escrows being supported. Yes, it is significantly less than what we thought it was going to be which is good news again. Chairman McCarthy We think the dam repairs will be about $100,000? Mayor Lozeau We think it shouldn‟t exceed $100,000. We actually have an engineer working on our behalf on the project keeping an eye on making sure we know what‟s happening and making recommendations. They are working on giving us some idea of an approach to do that work. We‟re pretty sure it won‟t be less than 16 or more than 100. We‟re hopeful that will be done soon and of course that would have to come back for approval for the contract and more information and we can provide the engineering drawings and that sort of thing. If we did it tonight it would just be a placeholder. Chairman McCarthy If we were to reduce the $250,000 to probably $120,000 just to deal with a round number, add $100,000 item, there would be $31,000 that would be left.  Jackson Mills Dam Improvement Project Project Meeting Minutes Excerpts related to Right Abutment Meeting Entry Date 2013-07-26 MC 1.8 TTG asked if MC had determined if there was ledge at the right side of the spillway. MC said they were not sure if that area consisted of ledge or an old structure. This would be determined once they can get into the construction area and demolition begins. 2013-08-02 MTG. 2 TTG asked if the makeup of the right side of the dam had been determined. MC said this will be seen when demolition continues. NHA also reported a suspected sewer or drainage pipe near the right abutment of the dam. TTG and MC planned to look at plans at the City Engineer’s office after the meeting. (Post meeting note: After looking at the plans TTG and MC determined that this pipe was not near the construction area and should not be affected.) 2013-08-09 MC MTG. 3 MC has begun demolition near the right abutment. They have found the foundation of an old building at 112.40’. This appears to be made up of cut granite block and rock cemented together. There is rebar sticking out of the face of the abutment. There does not appear to be ledge here as anticipated. Demolition is to continue at this abutment today. 2013-08-16 MC 4.8 On the right side of the dam, demolition uncovered the fact that the abutment only extended down to elevation 110.0 and the abutment was founded on gravel. Furthermore the demolition indicated the original timber frame dam ended about 30-feet from the right abutment. This 30-foot zone originally consisted of some type of structure built from cut granite blocks. The top of the granite was at about 104. At elevation 100.0 it was gravel fill. Since the new spillway crest cap will be down at 104.5 +/-, the granite blocks will have to be removed. Additional demolition along the right abutment has been curtailed until the abutment can be stabilized and shored up. Several concepts have been discussed with Methuen Construction. TTG will provide a detailed concept sketch for pricing. 2013-08-23 TTG/MCC 5.8  On Tuesday, August 20th, TTG released a sketch for the work proposed at the right abutment. The work included driving sheeting along the right abutment.  On Wednesday and Thursday, the 21st and 22nd, MCC uncovered move granite blocks and concrete adjacent to the right abutment. It was concluded that sheeting could not be easily driven and that a new plan was needed.  On Thursday the 22nd, TTG, Stephens Associates and MCC met on site to review the current situation and come with an alternate plan for dealing with the right abutment. TTG prepared a plan involving placing concrete in a series of steps to create a working platform as well as to underpin the right abutment. The plan was send to all parties  including FERC.  On Friday morning MCC placed a grouping of concrete blocks and a 3,000 psi concrete mix into the excavation up to a level of 103.25. Stephens Associates expressed concern about making sure there was a proper cut-out at the upstream side of the excavation (i.e. upstream edge of the new crest cap.) It was agreed that MCC would perform some additional excavation along the upstream edge of the newly placed concrete to place a cut off wall. The depth of the wall would extend down to elevation 98 to insure that the bottom of the cutoff was in the natural dense till. The new concrete would extend to the right as far as possible to tie into an existing cut-off. Both Stephens Associates and NHDES stated that they would like to see waterstop used at all cold concrete joints. A bentonite waterstop, such as RX101was discussed and it was agreed that it would be acceptable. The RX-101 shall be located in from the edge of the concrete by at least 6-inches.  On Monday MCC will proceed with the second Placement of concrete up to Elevation 104.25 in preparation for underpinning the abutment wall. MCC also pointed out that until all the leveling concrete and underpinning concrete is in place, the demo hammer cannot be used for at least 7 days until the concrete has sufficiently cured. At the conclusion of the work on the right abutment, TTG will prepare an as-built. 2013-08-20 MCC/TTG 6.8 Work has been progressing on the right abutment per the plan. One section has been underpinned and a second wall section will be placed Tuesday morning. TTG has been carefully monitoring the work. Waterstop has been added at all cold joints between concrete placements. The upstream cut-off wall will be placed last when all the underpinning is done. While this work has been ongoing, MCC has whittled away at the earth slope just upstream of the right abutment. Some of the large stumps have been removed and the slope has been stabilized. Permanent armor stone or some other means will be required as a final means of stabilization. 2013-09-13 MCC/TTG 7.8 On Thursday the 12th the final underpinning wall for the downstream portion of the abutment was cast. Now work can begin on the forming the right abutment. No work shall be done on an upstream cutoff wall until a design can be generated to stabilize the soil slope. FERC wants to review the slope stabilization method. 2013-09-20 MCC/TTG 8.8 A meeting will take place on site following the construction meeting to discuss a solution for the right abutment. POST MEETING NOTE: TTG, HTE, NHDES and MCC met on site to discuss various options for the right abutment. The steep embankment makes this area very challenging. It was discussed that Methuen would remove some of the soil near the upstream side of the abutment and create a 1V:1.5H slope starting at elevation 115.0. This slope would start at the upstream corner of the existing abutment making sure to stay well clear of the utility pole. MCC will contact PSNH to get their assessment of the pole for the expected earthwork to be done. With the new layed back slope, an area will be excavated done to 105.0 +/- so that the existing underpinning slab can be extended. The remainder of the existing abutment will be underpinned. None of this slab and underpinning work shall be done until the new right  abutment has been formed and cast. Once the right abutment is completely underpinned a new training wall shall be constructed at a 15-degree angle to the existing abutment. The training wall will be a continuation of the right abutment. The new training wall will be the same height as the new abutment – el. 120.0. Once the training wall is cast the area in back of the wall can be regraded and the slope can be stabilized with heavy armor stone. TTG will work up some sketches for all parties to review and comment. TTG will design the new reinforced cast-in-place concrete training wall. 2013-09-27 MCC/TTG 9.8 Upon review of the proposal submitted by TTG for a reinforced concrete training wall upstream of the right abutment, it was decided that TTG will look into some alternative, less costly solutions. MCC will provide input and will attempt, through some exploratory excavation, to uncover some of the area at the upstream end of the existing right abutment to determine the status of an old cut-off wall etc. Post Meeting Note: On Monday the 30th, MCC completed some exploratory excavation at the upstream end of the right abutment. The soil was taken down to about 105 to 106.0. Wood sheathing that was previously visible was discovered to extend down well below the 105 elevation. It is suspected that it extends down into the glacial till thus forming a cutoff wall at the corner of the right abutment. Also, it was discovered that the wing wall coming off the right abutment had been previously under pinned with concrete. MCC will move forward with the installation of the cut-off wall extension across the 30-foot zone over to where the dam starts. 2013-10-04 MCC/TTG 10.8 Methuen has completed the cutoff wall near the right abutment. The cutoff starts at the face of the right abutment and continues left until it intersects with the original dam about 30-feet away. The cut-off was founded at elevation 98.5. MCC is now proceeding with a slab and wall to underpin the remaining section of abutment. Discussion about stabilizing the earthen slope centered on construction of a stone wall. John stabile said stone is available through Continental Paving. He said they could even deliver it the site. MCC just has to let Continental know what size stone they will need. TTG (in collaboration with HTE) will come up with a design for the wall. 2013-10-11 MCC/TTG 11.8 MCC has completed the underpinning of the right abutment. A design for a stone wall upstream of the right abutment was prepared by HTE and a sketch of the proposed wall was distributed by TTG for comment. (Copy Attached). The estimated quantity of rock required for a 30-foot section of wall is about 200 tons. Brian wanted to make sure the top of the proposed wall extends at least a foot above the 100 year flood level. (POST Meeting Note – The 100 year flood level is 118.32 per TTG.) TTG and MCC are planning to go to Continental Paving’s pit off west Road after the meeting to look at the available rock they have. MCC will work up an estimate for construction of the stone wall based on supplying labor and minimal material such as the geotextile. John Stabile will be responsible for supplying all material from Continental’s pit to the site. For comparison, MCC will also work up a price for the previously proposed all cast in place concrete wall. 2013-10-18 MCC/TTG 12.8  CMS has approved the change order and given the go ahead for the construction of the rock wall at the upstream side of the right abutment. The top of the wall will be at 120, or about 1.6 feet above the 100-year flood level. Neil will start work on the wall on Monday. 2013-10-25 MCC 13.8 MCC has completed the construction of the right side rock retaining wall. POST MEETING NOTE: TTG and HTE reviewed the wall following the meeting and requested that MCC add some additional grout to fill in as many of the voids as possible. MCC will do the grouting next week. Key: Methuen Construction Company (MCC) – general contractor The HL Turner Group (TTG)—project engineer Cotton Mill Square (CMS)—developer of the Cotton Mill Square project and funder of the Jackson Mills Dam Improvement Project Nashua Hydropower Associates (NHA)—operator of the Jackson Mills Dam Stephens Associates—reviewing engineer hired by the City of Nashua New Hampshire Department of Environmental Services Dam Bureau (NHDES)—state dam regulatory agency Federal Energy Regulatory Commission (FERC)—federal dam regulatory agency  Jackson Mills Dam Crest Gate Project Report on the Demolition of the Dam Demolition on the existing spillway of the Jackson Mills Dam began on August 2, 2013. This report includes a daily summary of demolition and each day’s findings. August 2TH, 2013: Demolition began on August 2nd with the removal of the timber decking on the left side of the dam near the site of the new center pier. This section of the spillway was not part of the concrete cap that was installed in 1992. This timber decking appeared to have holes throughout. This timber can be seen in the photos below prior to removal. Several holes were found in this timber. One such hole can be seen in the lower left hand corner of the following photo. The timber decking was removed in several bays and it was observed that the composition of the dam included the large timbers making up the basic A-frame with solid concrete in between the timbers. August 5th, 2013: With the wood decking removed, this left only the A-frame timbers exposed along with the concrete filled bays. This is shown in the photo below. At this time, demolition was concentrated on the left side of the dam as rock boring activities were on going on the right side. August 7th 2013: Demolition near the left abutment continued. Methuen Construction used a hoe ram hammer to determine the thickness of the concrete. Two bays were explored and as far as could be determined, the dam appeared to be completely filled with concrete. August 8th 2013: Demolition moved to the area near the right abutment as the rock coring rig was moved to the left side of the dam. The hoe ram continued to hammer away on the concrete. As the concrete was removed, large, (1-inch diameter) twisted reinforcing steel was uncovered. August 9th, 2013: Demolition of the spillway continued near the right abutment. What was originally thought to be rock (as indicated on the contract documents) was in fact a combination of concrete and large granite blocks that seemed to form an apron or floor of an old spillway structure. Below the large blocks of granite, the Contractor uncovered gravel fill. During the demolition near the right abutment it was discovered that the 5-foot wide abutment extended to elevation 110.0 and that it was founded on gravel fill. The planned demolition cut line for the new spillway crest cap is about 5-feet below the bottom of this abutment. Paint marks on the right abutment indicate the elevations. Demolition was curtailed on the right side so as not to undermine the right abutment. Demolition of the concrete crest continued across the dam. August 10th, 2013: The majority of the spillway was demolished. The remov ed sections were solid concrete. August 12th, 2013: Demolition of the spillway continued to the planned cutline. As of this date, all indications supported the theory that the dam was filled solid with concrete. August 13th, 2013: Demolition continued, scraping the concrete down to the cutline, except near the right abutment where the existing spillway was mostly left intact to maintain stability of the right abutment wall. August 15th, 2013: Water entering the construction site through the cofferdam was draining through the dam on the right side was draining through a hole at the upstream edge of the demolition zone. Several explorations were completed to determine why the water was draining freely through the dam and if in fact there were voids below the concrete. A test hole was drilled on the left side of the dam near the site of the new center pier. The test hole was located about 12.5’ from the upstream face of the dam. The hole was drilled from the top of concrete (104.26’) to a depth of 4’ (100.26’). The depth of the hole was limited by the length of the drill steel on the pneumatic drill. This exploration confirmed that there was concrete at 100.26 or 4-feet below the demo line. A test pit was dug starting at EL. 104’ at the approximate location of the upstream edge of the crest cap, once again near the location of the proposed center pier. The test pit showed the depth of concrete to be approximately 1.5 to 2 feet thick and that the concrete was sitting atop rock rubble. The top of the rock rubble was at elevation 102.0 +/-. The test pit and the rock rubble can be seen in the photos below. A test pit was also dug 10’ from the right abutment wall. This test pit was dug to a depth of EL. 100.0’.Large, cut granite blocks were found at EL. 104.2’. The hole was dug to EL. 100’. At this point groundwater was in the hole and the only material present was soft, easily excavatable gravel. Pictures of this test pit can be seen below. The demolition work and exploration test pits revealed that the original dam ended approximately 30 feet from the right abutment. The apparent joint between the dam spillway and the material to the right side of the dam can be seen in the photo below. A third test pit was dug approximately 35 to 40 to the left of the right abutment. At elevation 102.7’ the bottom of the concrete was found and it appeared that below the concrete there was rock rubble, similar to the discovery on the right side. Locations of each test pit are shown in the plan view below. August 16th, 2013: A construction meeting was held on site followed by a site walk. Following the demolition of the existing dam two issues have come to light. Issue No. 1: As suspected, the original timber dam was filled with stone rubble up to an elevation of about 101.0 to 102.0. Above this elevation the original timber framed dam was filled with reinforced concrete. We plan to go ahead wi th a grouting program to address this issue. The exact details are yet to be finalized. Issue No. 2: On the right side of the dam at a distance of approximately 30-feet off the right abutment, the original timber framed dam ended. The 30-feet space between the end of the dam and the right abutment was filled with a combination of cut granite blocks and concrete and was founded on a gravel base. This includes the right abutment. This area may have served as a spillway or bypass for water flow, but the original intent of this area is unknown. Various concepts have been proposed to address this area. These plans are still in the works and will be forwarded as soon as they become available.  NOTES: 1. SHEETING TO BE PZ-27, 40' LONG SHEETS. 2. NEW ABUTMENT TO BE CONSTRUCTED ON 4'-0" 5'-0" 31'-0" WELL-COMPACTED IN SITU GRAVEL. 3. PZ-27 SHEETS TO BE ANCHORED TO TOP OF 40' SHEET EXISTING ABUTMENT. SHEETING TO SUPPORT EXISTING ABUTMENT. USE 1 ROW EXISTING OF 1 1 4 ABUTMENT ANCHOR RODS AT 12" O.C. w/ 8" MIN. NEW ABUTMENT (EXISTING GRADE) 126.2' EMBEDMENT. 4. SHEETING ALONG EXISTING ABUTMENT TO BE INSTALLED IN SECTIONS TO ALLOW FOR DEMOLITION TO BE COMPLETED AT 120.0' UPSTREAM & DOWNSTREAM EDGES OF NEW ABUTMENT. CUT SHEET HERE, USE TOP PIECES FOR NORTH / EXISTING 84" RCP SEWER LINE 5. PRESSURE GROUTING SHALL UTILIZE A SOUTH CUT-OFF SUPER FINE CEMENT GROUT SUCH AS ANCHOR SHEETS TO MULTIGROUTS MICRO-CEMENT OR EQUAL. DRILL & PRESSURE GROUT ABUTMENT ALONG BOTTOM OF ALL 6. AN INTERLOCK SEALANT SHALL BE APPLIED SHEETS 110.0' BETWEEN SHEETS. USE WADIT NON-TOXIC INTERLOCK SEALANT OR EQUAL. 2.5' THK. FOOTING 106.31' 7. CONTRACTOR SHALL PROVIDE A SUBMITTAL WHERE SHEETING 105.0' WITH CALCULATIONS FOR FINAL INTERSECTS INSTALLATION PROPOSED. EXISTING DAM, PRESSURE GROUT THIS INFILL WITH ZONE AFTER SHEETING IS GROUT TO MAKE 15' TO 16' INSTALLED A TIGHT SEAL CUT-OFF WALL TO ROCK PARALLEL & TIGHT TO EXISTING ABUTMENT 91.5' NORTH /SOUTH CUT-OFF USE SECTIONS CUT FROM 40' SHEETS EXTEND TO EXISTING DAM FIGURE: ARCHITECTS ENGINEERS 27 LOCKE ROAD CONCORD, NEW HAMPSHIRE 03301 BUILDING SCIENTISTS RIGHT ABUTMENT DESIGN T:603.228.1122 / F:603.228.1126 W:www.hlturner.com ISSUED AUG. 20, 2013 CONCORD NH HARRISON ME LYNDONVILLE VT PROJECT NUMBER: 3606-04 LITTLETON MA NEW HAVEN CT REFERENCE SHEET: 18" = 1'0" DATE:  TURNER GROUP T H E H. L. T U R N E R G R O U P I n c. 27 LOCKE ROAD, CONCORD, NH 03301-5417 TELEPHONE: 603-228-1122 FAX: 603-228-1126 February 21, 2014 Mr. Thomas Galligani Economic Development Director Office of the Mayor 229 Main Street PO Box 2019 Nashua, NH 03064 Subject: Jackson Mills Dam – Crest Gate Project Dear Mr. Galligani, This to officially inform you that all contracted work on the Nashua Dam Crest Gate Project was completed as of the end of December 2013, with the exception of a few punch list items. As discussed, during the course of the work, at the weekly on-site meetings, certain unforeseen conditions at the dam were discovered during construction, as they related to the dam and in particular the right abutment. Due the lack of a proper foundation, the right abutment required extensive underpinning with reinforced concrete, and a new rock retaining wall was required upstream of the abutment to provide protection for the abutment and the existing slope. As was discussed during these construction meetings, The City agreed to provide funds, in the amount of $100,000 to help defray the cost of rectifying these unforeseen conditions. By this letter I hereby certify that the work on the right abutment has been completed as part of this project. This work was satisfactorily completed in accordance with the design details provided by this office. In addition, all work was reviewed during construction and found to be acceptable by this office. Therefore, you will soon be receiving an invoice for this work from the Contractor, Methuen Construction Co., Inc. for the amount stipulated. If you have any questions or require any additional information, please do not hesitate to contact me. Sincerely, THE H. L. TURNER GROUP INC. Paul M. Becht, P.E. Project Manager PMB/vbp ARCHITECTS • ENGINEERS • BUILDING SCIENTISTS T. Galligani 02-21-14.docx 3606-04 Copyright 2014  AGREEMENT BETWEEN CITY AND COTTON MILL SOUARE. LLC REGARDING JACKSON MILLS DAM - AOQu≤r On this Is. day ofjunt, 2012, NOW COME, the City of Nashua (“the City”), a New Hampshire municipal corporation, having a principal place of business at 229 Main Street, Nashua, New Hampshire 03060 and Cotton Mill Square, LLC (“CMS”), a New Hampshire limited liability company, having a mailing address of 20 Cotton Road, Suite 200, Nashua, New Hampshire 03063, and say as follows: WHEREAS, the City has entered into an agreement with Nashua Hydro Associates, a New Hampshire limited partnership, (“NHA”) entitled “Agreement Regarding Jackson Mills Dam” (the “NRA Agreement”) to allow for the application for certain approvals (“Approvals”) and the construction of certain modifications (“Modifications”) to the Jackson Mills Dam located in Nashua, New Hampshire; WHEREAS, pursuant to said NRA Agreement, the City has been given certain rights regarding application for and construction of certain Modifications to the Jackson Mills Dam (the “Rights”); WHEREAS, pursuant to said NRA Agreement, the City has undertaken certain obligations to or for the benefit of NHA (the “Obligations”); WHEREAS, the City anticipates assigning the Rights to a third party independent contractor in order to pursue the Approvals and to construct the Modifications pursuant to the Approvals; WHEREAS, CMS has received approval from the City of Nashua Planning Board for the construction of multi-family housing within the existing Cotton Mill Building located on Front Street in Nashua, New Hampshire; and WHEREAS, as a beneficiary of a reduced 100 year flood zone resulting from the construction of the Modifications, CMS desires to participate in the application for Approvals and construction of the Modifications and agrees to assume the Obligations during the period of the application for Approvals and the construction of the Modifications in consideration for the assignment of the Rights by the City together with limited financial participation of the City. NOW, THEREFORE, the parties hereto, for the mutual promises and covenants contained herein, all of which are deemed good and valuable consideration, do hereby agree and say as follows: 1. The City shall assign the Rights under the NRA Agreement to CMS, its successors or assigns. 2. CMS, its successor or assigns shall assume all of the Obligations during the period of application for Approvals and the construction of the Modifications at its sole cost and expense, except as may be paid by the City in its sole discretion, and for itself, its contractors, agents and employees, shall hold harmless the City for any claim, damages, losses or liabilities, arising out of the exercise of the Rights or undertakings of the Obligations by CMS or its assigns and its contractors, agents and employees, and shall indemnify the City from and against any claims, damages, losses or liabilities made by any third parties arising out of the exercise of the Rights or the performance of the Obligations by CMS, its successors or assigns, and its contractors, agents and employees, excepting as to those matters caused by the negligence or willful or fraudulent acts of the City, its contractors, agents or employees. 3. CMS, in the performance of the Obligations, shall pay to the City, any and all amounts of the reimbursements required under the NRA Agreement (“Reimbursements”) or pay the cost of any credits to be provided to NRA by the City against NRA’s rental obligations to the City under its Lease with the City, all as provided in the NRA Agreement; provided, however, by assuming the Obligations, CMS is not obligated to construct the Modifications as may be permitted by the Approvals, but once the construction of the Modifications has begun, it must be completed to the satisfaction of and acceptance by the City, and CMS shall post a completion bond to the benefit of the City and NRA in the amount of the cost of construction of the Modifications, satisfactory to the City to ensure completion of the Modifications once begun. 4. CMS, in accepting the Obligations, agrees to be bound by the terms and conditions of the NHA Agreement. 5. This Agreement may be terminated by either party in the event CMS elects not to pursue applications for the Approvals or to perform construction of the Modifications pursuant to the Approvals, or if the Modifications have not been completed within three (3) years of the date hereof. 6. Notices, requests, demands and other communications shall be in writing and shall be deemed to have been duly given when delivered in hand to such party or mailed by certified or registered mail, postage prepaid, return receipt requested at the addresses set forth hereinabove or at such other address as delivered by one party to the other. 7. CMS shall carry and maintain in effect during the performance of services: • General Liability insurance in the amount of $1,000,000 per occurrence; $3,000,000 aggregate; • $1,000,000 Combined Single Limit Automobile Liability; and • Workers’ Compensation Coverage in compliance with the State of New Hampshire statutes, $1 00,000/3500,000/$ 100,000. CMS shall maintain in effect at all times during performance all specified insurance coverage with insurers. None of the requirements as to types and limits to be maintained by CMS are intended to and shall not in any manner limit or qualify the liabilities and obligations assumed by CMS. The City of Nashua shall not maintain any insurance on behalf of CMS. Subcontractors are subject to the same insurance requirements as CMS and it shall be the CMS’ responsibility to ensure compliance of this requirement. The parties agree that CMS shall have the status of and shall perform all work as an independent contractor, maintaining control over all its consultants, sub consultants, contractors, or subcontractors.  CMS will provide the City of Nashua with certificates of insurance for coverage and endorsements affecting coverage. The City of Nashua requires thirty days written notice of cancellation or material change in coverage. General Liability, Employers’ Liability and Auto Liability polices must name the City of Nashua as an additional insured and reflect on the certificate of insurance. • All deductibles and self~insured retentions shall be fully disclosed in the certificate(s) of insurance. • If aggregate limits of less than $3,000,000 are imposed on bodily injury and property damage, CMS must maintain umbrella liability insurance of at least $2,000,000. All aggregates must be fblly disclosed on the required certificate of insurance. • The specified insurance requirements do not relieve CMS of its responsibilities or limit the amount of its liability to the City or other persons, and CMS is encouraged to purchase such additional insurance, as it deems necessary. • The insurance provided herein is primary, and no insurance held or owned by the City of Nashua shall be called upon to contribute to a loss. • CMS is responsible for and required to remedy all damage or loss to any property, including property of the City, caused in whole or part by CMS or anyone employed, directed, or supervised by CMS. Regardless of any coverage provided by any insurance, CMS agrees to indemnify and shall defend and hold harmless the City, its agents, officials, employees and authorized representatives and their employees from and against any and all suits, causes of action, legal or administrative proceedings, arbitrations, claims, demands, damages, liabilities, interest, attorney’s fees, costs and expenses of any kind or nature in any manner caused, occasioned, or contributed to in whole or in part by reason of any negligent act, omission, or fault or willful misconduct, whether active or passive, of CMS or of anyone acting under its direction or control or on its behalf in connection with or incidental to the performance of this contract. CMS indemnity, defense and hold harmless obligations, or portions thereof, shall not apply to liability caused by the sole negligence or willful misconduct of the party indemnified or held harmless. 8. This Agreement and the performance thereof shall be interpreted and governed as a contract under the laws of the State of New Hampshire. 9. Any dispute with respect to the terms and provisions contained in this Agreement or the performance thereof shall be settled by arbitration in accordance with the rules and regulations of the American Arbitration Association then in effect, the award rendered by the arbitrator’s decision shall be final and binding and judgment upon such award may be entered in any court having jurisdiction thereof. 10. This Agreement may be executed in any number of counterparts, each of which when so executed shall be an original, but all of the counterparts together shall constitute one in the same instrument. 11. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be deemed invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. IN WITNESS WHEREOF, we have hereunto set our hands on the day and year first above-written. CITY UA Witness Donnalee Lozeau, &layor, Duly Authorized COTrON MI SQUARE, LLC ~— 1S~a~7 B5StabiIenManaerDuI~AuthOnZed Witness F~2OIZsI2-2OO’docunrnIs’agreement between city & c.m rr darn [7-10 - f.naIj.docx