Finance Committee

REPORT OF THE FINANCE COMMITTEE JANUARY 20, 2010 A meeting of the Finance Committee was held on Wednesday, January 20, 2010 at 7:00 p.m. in the Aldermanic Chamber. Mayor Donnalee Lozeau presided. Members of the Committee present: Alderman-at-Large David W. Deane, Vice Chair Alderman-at-Large Ben Clemons Alderman Kathy Vitale Alderman Arthur T. Craffey, Jr. Alderman Paul M. Chasse, Jr. Members not in Attendance: Alderman-at-Large Barbara Pressly Also in Attendance: ELECTION OF COMMITTEE CLERK Mayor Lozeau called for nominations for Committee Clerk ALDERMAN CRAFFEY NOMINATED ALDERMAN CLEMONS MOTION BY ALDERMAN DEANE TO CLOSE THE NOMINATIONS MOTION CARRIED ALDERMAN CLEMONS ELECTED AS COMMITTEE CLERK FOR THE 2010-2011 TERM COMMUNICATIONS From: Robert Gabriel, Purchasing Manager Re: Contract for Grant Administration of EECBG Funds (Value: $72,900) Account: 373-7002 FY10 Energy Efficiency & Conservation Block Grant (EECBG) Account Balance Remaining After Purchase: $482,000 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO DEB CHISHOLM IN A SUM NOT-TO-EXCEED $72,900. FUNDS ARE AVAILABLE IN ACCT. #373-7002 ON THE QUESTION Mayor Lozeau Before I open it up for committee discussion, I will point out, for the benefit of the new members, that some time ago in the last year, as you can see by the resolution included in the packet, we applied and received funding from the federal government relative to energy planning. We have hired the Jordan Institute as the company doing the energy assessment with a portion of that $800,000+, and it has become abundantly clear that the administration of this grant and the next steps in the coordination really needs a project manager. Deb has been helping us out. It is something that she participated in the grant writing. It seems to make sense to have her continue in this role. I am happy to open it up for discussion by members. Finance – 01/20/10 Page 2 Alderman Deane We are not going to be required to put a big sign up anywhere are we? Mayor Lozeau Not that I am aware of, certainly not at this stage. Alderman Deane What is the timeframe on this whole project? Mayor Lozeau Right now the first round of the grant is the $834,900. We anticipate the report by the Jordan Institute to be completed likely in February and then we will start drawing down the funds as we prioritize the energy plan that is going to be provided to us. Some may go for some of the city building work we are doing, some may go for other projects. I anticipate over the next three years, but I also believe that, based on whatever the components of the plan are that we are going to prioritize, there may be other funding available that we will apply for for further grants. Nashua was a direct recipient the last time, and we are under the impression that there is another round coming. In addition, we have been identified as one of three communities in the state’s grant for Beacon Project Communities, which is a competitive grant project throughout all 50 states. Nashua may have an opportunity to have further dollars for a project under that funding as well. This could go on for quite a while as we implement the plan. Alderman Deane She has a total cost of $72,900. Then she has it broken down and estimated hours per month. Obviously this must have a timeline on it to when it finally runs out. Mayor Lozeau What we are anticipating is for what we are signing Deb up to take responsibility for is a three- year window. I just wanted to make you aware that it could change. I am hopeful that the energy work that we are going to want to do in this community, it is certainly a priority of mine, and I know I share that with a lot of the Aldermen, but there are things we can do that will benefit us in the long run. Alderman Vitale If she is having a three-year window then are you going to come back if that is going to be extended? Mayor Lozeau Yes. We would come back and ask, and if anything changes between now and that three years, more funding comes in, we need anything to change, we would come back as well. Alderman Vitale Okay. Finance – 01/20/10 Page 3 Mayor Lozeau Is there further discussion? Alderman Chasse In the body of the resolution, right at the bottom, it says this funding shall be in effect from September 1, 2009 through August 31, 2012. That would be the three years? Mayor Lozeau That is correct. That is when we got approved and started the work. Is there further discussion? Alderman Deane The estimates on her sheet, I guess it would be the third page, they don’t seem to equate to a three-year timeframe. Maybe I am wrong. Mayor Lozeau It may not, but as you can see in her second line, she created the proposal with the assumption that the scope of items would be carried out over three years. For instance, right now there is not a lot of work that needs to be done by Deb because the Jordan Institute is pretty much carrying the heavy lifting now. She would participate in a monthly meeting or our updates when we have them, but she wouldn’t do a lot of the other work that is identified here. When their work is completed then she may take on some more tasks, and then depending on how that task gets carried out whether we hire a company to put windows in, her work would be less. It is really hard to anticipate what is going forward without the plan being identified. Because we are allowed the administrative funds out of the grant, it seemed to make sense to get her in the process sooner rather than later. Alderman Deane Is her hourly rate basically $45? Mayor Lozeau Yes. Alderman Deane Is that throughout? It says it on the top. Mayor Lozeau And that is her hourly rate for the Brownfields work she does as well. It is pretty consistent. Alderman Deane So that is reflected throughout the scope of work and cost proposal that was submitted? Mayor Lozeau Yes. Finance – 01/20/10 Page 4 Alderman Deane Okay. Thank you. Mayor Lozeau You are welcome. Is there further discussion by members of the committee? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Legal Advisory Services Requested by City IT & Financial Services Division (Value: $20,000) Account: 722-53025-3735 ERP – Consulting Services Account Balance Remaining After Purchase: $7,455,528 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO ORR & RENO IN AN AMOUNT NOT-TO-EXCEED $20,000. SOURCE OF FUNDING IS ACCT. #722-53025-3735 ON THE QUESTION Alderman Deane Was this anticipated when the bond was originally floated for $7.4 million? Mayor Lozeau Yes it was. There are very few law firms that specialize in this kind of service. Also, I would point out because I am sure some of you noticed as well, on the Orr & Reno proposal on the back side of their letterhead is a section that speaks to billing rates. That is incorrect. There is a new blended rate, which is what gives the not to exceed $20,000. They had the opportunity to meet with our legal council and Mr. Gilbar and talk about some of the specifics, and because of that we were able to negotiate a blended rate. When you see those rates they look pretty expensive. Alderman Deane After they were selected there was some negotiation that went on? Mayor Lozeau There was. There were only two firms that responded, and of those two firms the only one with direct ERP experience was Orr & Reno, which is reflected in their cost. I think that is one of the reasons it is different than the other proposal. Alderman Deane Is there still an Aldermanic representative to the ERP? Mayor Lozeau Yes. Alderman Deane Who is that? Finance – 01/20/10 Page 5 Mayor Lozeau Alderman McCarthy I believe participates. Alderman Deane Thank you. Mayor Lozeau You are welcome. Is there further discussion on this item? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Transit Center Rehabilitation Design Phase Services Requested by Transit Department (Value $29,875) Account: 374-01319-7222-7200 – Construction Rehab – NTS – ARRA Account Balance Remaining After Purchase: $70,125 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO CMA ENGINEERS IN THE AMOUNT OF $29,875. FUNDS ARE AVAILABLE IN ACCT. #374-01319-7222-7200 ON THE QUESTION Alderman Chasse Did they ever take a look to see about enclosing the whole thing? Mayor Lozeau One of the things that I know is on the table is looking at the current design and any changes that might make sense. As you saw in the memo, they talked about how old the facility is and some of the challenges they are facing. I don’t know if total enclosure is anything that has been discussed, but I think they are pretty confident that this group will make recommendations about what should happen. One of the other things that I have brought to the table is that we should be looking at potentially having a taxi stand in some of that area, which may play into some of the building design and where it might be versus where the buses drive and things like that so we can take the taxis out from behind the garage where they park, the metered spaces, which presents a problem sometimes for the downtown businesses. We have been working with the taxi company about not doing that, but it seems as the transit is growing and different folks are coming in or going out for different reasons, having a taxi stand there seems to make some sense too. There are an awful lot of things on the table. We will see what the design comes back with. This is also going to compliment our energy efficiency efforts too because they will look at energy efficient lights, is the heating system right, should they be making changes to the ceilings, and things like that. Is there further discussion on this item? MOTION CARRIED Finance – 01/20/10 Page 6 Alderman Deane Mayor I have one question. This is more stimulus money right? Mayor Lozeau It is stimulus money, and the stimulus money that has been being able to be utilized by the transit department has had very different expectations surrounding it than some of the other money that we will talk about later tonight. There is no local match to this and it is money that I sometimes will say I don’t necessarily have a problem sending back federal dollars because it still comes out of the same pockets, but if the federal dollars go back and just go to another community then I think we are being a little shortsighted if we benefit from them. This is one of those instances where if we didn’t have a need for it, which I think is demonstrated in this memo, it would go back and potentially be used by maybe not even somebody in the state. I have some concern about that. Alderman Deane I guess it is all conscious ridden right? Mayor Lozeau Correct. But when you look at the transit station with a ten year old facility, does it make sense to look at it and come up with a strategy on what is next for that building and how do we maintain it in the long run when opportunities like this aren’t here. I think this presents that opportunity for us that we wouldn’t have without it. From: Robert Gabriel, Purchasing Manager Re: Aerial Image Updates for GIS System (Value: $16,992) Account: 792-53032-3794 Stormwater Abatement – Flyover & Color Ortho Account Balance Remaining After Purchase: $230,798 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO AERIAL CARTOGRAPHICS OF AMERICA IN THE AMOUNT OF $16,992. SOURCE OF FUNDING IS ACCT. #792-53032-3794 ON THE QUESTION Alderman Deane To the committee, we had a pretty good discussion at the Public Works meeting about why we were doing this and why the engineering department wanted to be involved. It had to do with impermeable surface area. They will calculate all of the impervious; the roof, paving, and things of that nature for different site locations, which will help with drainage issues and things of that nature. Mr. Dookran did say it is going to be utilized during the Planning Board process and application process because the city will have a better handle on what the net impact will be when you put up X amount of square feet of building that has X amount of flat roof that gathers water and then where does it go scenario. I think it is good. I think the whole GIS system is a good improvement. It is a good investment in that area. Finance – 01/20/10 Page 7 Alderman Vitale I would agree with that. I know on the Zoning Board looking at the surfaces is one of the questions that gets asked quite often of the Planning Department. I would agree that is important. Mayor Lozeau Our GIS Director is very pleased too because he gets two components of this for less than the price of one that we used to add on prior to this. It will be a nice fit. Is there further discussion on this item? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Harbor Ave Area Sewer Separation Design Phase Services (Value: $445,000) Account: 792-53030-3791 Engineering Services – CIP – Facility $222,500 Account Balance Remaining After Purchase: $414,061 Account: 792-53030-3745 Engineering Services – CIP – CSO Flooding $222,500 Account Balance Remaining After Purchase: $977,500 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO HAYNER/SWANSON IN THE AMOUNT OF $445,000. FUNDS ARE AVAILABLE IN ACCTS. #792-53030-3791 ($222,500) AND 792-53030-3745 ($222,500) ON THE QUESTION Mayor Lozeau This also is something that the Board of Public Works took up and had a lengthy discussion about. Alderman Chasse Wasn’t this study already done? Mayor Lozeau This is because of the results of the study so the re-evaluation has said we can have a smaller disinfectant facility, which allows us to look at some of the other things in the system so based on those changes, this is recommended. It is part of that. Alderman Chasse So it is a re-evaluation. Mayor Lozeau The re-evaluation happened so now this is the work related to that re-evaluation that we should carry out. It takes care of basically the sewer discharge from the west side of Main Street that is un-separated, kind of goes down Bowers Street. This will pick up working on the problem surrounding Tyler Street, Prospect Street, Otterson, Harbor, Harbor Court, Crowley, Lyons, New Street, a whole area where we will be able to separate. It certainly won’t eliminate the flooding, but it will reduce it significantly. Frankly, it will make a difference in the kind of flooding we have so to speak. Finance – 01/20/10 Page 8 We are actually spending the same dollars, but getting more infrastructure for the work. Alderman Chasse So in other words all of those people in Ward 7 in this area should be very happy when this is all done. Mayor Lozeau I think they will be. Alderman Chasse And Alderman Flynn will also be happy and won’t be getting any more phone calls. Mayor Lozeau Well I can’t guarantee he won’t get any phone calls because this won’t eliminate it, but this will be a significant improvement. Is there further discussion on this item? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Haines Street Sewer Project Design & Engineering Services Amendment #1 (Value: $39,000) Account: 792-53030-3742 Sewer Project Engineering - DPW Account Balance Remaining After Purchase: $291,490 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON FINAL PASSAGE OF R-10-03, AUTHORIZE AMENDMENT NO. 1 TO THE CONTRACT WITH HAYNER/SWANSON, INC. FOR A NET CHANGE IN AN AMOUNT NOT- TO-EXCEED $39,000. SOURCE OF FUNDING IS ACCT. #792-53030-3742 ON THE QUESTION Mayor Lozeau This is related to the resolution that was brought in under suspension at the last board meeting. Chairman of the Budget Review Committee, Alderman Deane, I think the public hearing is it tomorrow night? Alderman Deane Yes. Mayor Lozeau Ordinarily we could talk about not having this on the Finance agenda prior to other things taking place, but as I mentioned that night when it came in under suspension of the rules, these dollars are stimulus dollars that were slated for another community in the state that could not perform the work as they had anticipated. The state had some funds left over, and because our project was already basically shovel ready and we were working on it, it allowed them to look at us so that we could quickly say to them well we have two acres more of this site that we would like to include. In order for them to stay on track with the money, and in this instance again not send it back to the feds, we have to take every opportunity we can to keep moving it through the process. The Finance – 01/20/10 Page 9 Board of Public Works took action on it, the resolution came in, and the public hearing was notified. It is Finance tonight. Hopefully the full Board will take it up at the next meeting, and then its Governor and Council meeting the next day, the 27th. That is one of the reasons it is here tonight. I am not so uncomfortable with the process in this sense. This is a project that the majority of the Board is familiar with and Public Works is familiar with, and our staff is comfortable with. It is a great opportunity to save about $125,000 and expand our project that we have been doing. I am glad we have the opportunity frankly. Is there further discussion? Alderman Clemons Just expanding on what you said, I have no problem with this at all. I think utilizing this money is smart, and I think we are going to get a lot of benefit out of it. Certainly the people in the Haines Street area are going to be very appreciative of this. I think it is the right thing to do. Alderman Deane I think you should explain the financing of the other $125,000. I don’t know if everybody is aware of it. Mayor Lozeau There are two components; one is the engineering costs, which the city will cover and the other is the actual construction project costs. The agreement that we have with the state, which we will explain more tomorrow night at the public hearing, is that they will pay 50% of the project and the city will pay 50% of the project. It is the state revolving loan fund, which we, for financial purposes, in the city treat almost like bonded money. It is money that we borrow at like 1%, 2% depending on where it is at that time, and we only have to pay half the project costs, which is pretty substantial. Did I miss anything Alderman Deane? Alderman Deane With interest. Mayor Lozeau With interest yes, but still overall it is a cost savings. This is a project that really – I don’t know that the city would have been in a position to take care of this problem on Haines Street where sewerage was flooding into people’s properties and has been for years. The worst problem of course was the spring of 2008 when we had 300 year floods in a row and it really brought the problem crashing into everybody’s forefront. Prior to that it was every couple of years something might happen. Had the loan program and the stimulus dollars not been available, I don’t know that this project would have been able to be affordable. It really is a great opportunity. The two components before you tonight are this piece, which is the engineering costs, and then the second piece, which is the construction, which we anticipate being some time in mid March. Is there further discussion on this item? Alderman Deane You know Mayor the other thing that you have to bring up about Park Construction is they have already got all of their equipment and everything is placed. There is no additional cost. The other thing is the relationship that company has with that neighborhood is of substantial Finance – 01/20/10 Page 10 importance. A lot of folks that I have spoken to up there are extremely happy with the professionalism, the way they are treated, and their driveways are ramped up. That company goes out of their way. They know of the massive disruption that causes in the neighborhood during the construction, but they go out of their way to try to keep everybody happy and keep life as normal as possible while the road is totally gone. They have done well. For the amount of work they have done in the city they have done an outstanding job. We have paid them good money to do the work they have done, but they are unlike prior contractors that the city has hired when we first got into the separation where we hired some doozies to do some work here that was just unbelievable. I will say it publicly because the problems that we had and the re-work we had to do, it cost us double in some instances. Dartmouth and Hill Street was one area in particular. Mayor Lozeau I know that engineering, when we started talking about projects like this, explained to me the cost of separation and why some of that was stopped and why we went to the Consent Decree and all of those different components. I think it has been, as you said Alderman Deane, a wonderful collaborative effort between a company that knows what they are doing and knows how to treat the customers that they are interacting with every day and the city staff who has been right on top of it communicating with residents as well. It is a model for how, if we could replicate that kind of service every time we go into an area in the city, we would be very well served. You are absolutely right. Is there further discussion on this item? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Haines Street Sewer Project Construction Change Order #3 (Value: $250,000) Account: 792-59232-3742 Sewer Construction – Haines Street Account Balance Remaining After Purchase: $41,490 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON FINAL PASSAGE OF R-10-03, AUTHORIZE CHANGE ORDER #3 TO THE CONTRACT WITH PARK CONSTRUCTION FOR A NET CHANGE NOT TO EXCEED $250,000. FUNDS ARE AVAILABLE IN ACCT. #792-59232-3742 ON THE QUESTION Alderman Chasse Would this be like while they are doing the project if they ever get up to a certain point and they see that the pipes are deteriorated that they are replacing them and that is why these change orders are coming in? Mayor Lozeau This is the project we were just speaking about. This is the additional site. If money wasn’t an object, we would probably take over what a 6 acre site over in that side of town. This is we knew that the Haines Street project could be significantly larger than it was, and when these funds became available, it was easy for us to say here is the next phase of it. That is why this has come. It is not so much that the pipes are deteriorating it is that we really need to separate them in that area because of how the flooding is and how low laying that area is. Finance – 01/20/10 Page 11 Alderman Chasse But they are replacing pipes if they are deteriorating, if they have to? Mayor Lozeau They are actually taking out the pipe. They are separating the sewer and storm water. So that is replacing those pipes. At the same time, Pennichuck and the gas company has been working hand in hand replacing some of their pipes as well. Alderman Chasse And this is all going to get paved when it is all completed? Mayor Lozeau This is the 50/50. We are paying 50% of the cost and the state is paying 50% of the cost. Alderman Chasse Thank you. Mayor Lozeau You are welcome. Alderman Deane When they did the modeling in this area, this trunk on Haines Street took a majority of both storm water and sewer from a lot of the side streets. The separation that heads down to Allds Street and goes into the lines down there and then whatever goes down to the treatment plant. With the modeling that they did with the size of piping, this created increased capacity to have some relief in those areas, even some of those side roads where the combined is still tied in. Mayor Lozeau And will stay tied in. Alderman Deane It will stay tied in until such time as money is available to separate it or until such time as the line collapses. As the Mayor stated earlier, that whole end of town could be done. You could go up into that area and start at Allds Street and do every street, but money is kind of an issue right now. This is the most problematic area. It is a low laying area. Alderman Flynn can attest to the fact when we had heavy downpours we had significant backups in houses, backups on front lawns, out in the streets. Hopefully this will rectify some of the problem. Mayor Lozeau Is there further discussion? MOTION CARRIED UNFINISHED BUSINESS – None Finance – 01/20/10 Page 12 NEW BUSINESS – None DISCUSSION - None WARRANT MOTION BY ALDERMAN CLEMONS TO APPROVE WARRANT #13 IN THE TOTAL AMOUNT OF $10,312,120.84 OF WHICH $2,660,308.44 ARE ACCOUNTS PAYABLE, $5,211,086.67 ARE PAYROLL AMOUNTS, $2,897.29 ARE PREPAY AMOUNTS AND $2,437,828.04 ARE WIRE TRANSFERS MOTION CARRIED ADJOURNMENT MOTION BY ALDERMAN CHASSE TO ADJOURN MOTION CARRIED The Finance Committee meeting was adjourned at 7:37 p.m. Alderman-at-Large Ben Clemons Committee Clerk