Finance Committee

REPORT OF THE FINANCE COMMITTEE JULY 21, 2010 A meeting of the Finance Committee was held on Wednesday, July 21, 2010 at 6:30 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-at-Large Barbara Pressly Alderman Kathy Vitale (6:35 p.m.) Alderman Arthur T. Craffey, Jr. (6:45 p.m.) Alderman Paul M. Chasse, Jr. (6:45 p.m.) Members not in Attendance: Also in Attendance: Alderman-at-Large Brian S. McCarthy (6:45 p.m.) Robert Gabriel, Purchasing Manager COMMUNICATIONS From: Mayor Donnalee Lozeau Re: 14 Court Street Emergency HVAC Repairs MOTION BY ALDERMAN CLEMONS TO ACCEPT AND PLACE ON FILE ON THE QUESTION Alderman Deane Do we have any additional information? Mayor Lozeau We have a contract that is going to be made available to the members. Alderman Deane That is supposed to be tonight – at the next regular… Mayor Lozeau It is right here Alderman Deane. I didn’t have a chance to make copies of it. I will provide it to the members. Alderman Deane On Monday? Mayor Lozeau I will try to get it copied this evening. Finance – 07/21/10 Page 2 Alderman Deane Oh I didn’t hear you. Thank you. Mayor Lozeau You are welcome. I just didn’t have enough time. Is there further discussion? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Catalog Interface Software Requested by Nashua Public Library (Value: $17,526) Account: 375-45050-7302-6704 Lost/Damaged Overdue & Fines – Library Account Balance Remaining After Purchase: $81,528 MOTION BY ALDERMAN CLEMONS TO ACCEPT AND PLACE ON FILE ON THE QUESTION Mayor Lozeau The reason we are moving to just accept it and place it on file is I would like the discussion to take place when we get to the resolution of the same nature. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Hunt Building Architectural Services Amendment #1 (Value: $45,000) Account: 720-3738 City Building Improvements – Hunt Bldg. Account Balance Remaining After Purchase: $1,055,000 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AUTHORIZE AMENDMENT NO. 1 TO THE CONTRACT WITH HDB/CRAM & FERGUSON, INC. FOR A NET CHANGE AMOUNT NOT-TO- EXCEED $45,000. SOURCE OF FUNDING IS ACCT. #720-3738 ON THE QUESTION Alderman Deane Thank you. When I looked in the second paragraph pertaining to the services would address water infiltration and mold concerns, I was under the impression that the public works department had started doing some work on that. I understand the historical value of this firm that has been retained because when we go back in time there were relations of part of the original design and construction of the Hunt building itself, but it seems like, if I remember correctly, anything we do there they get a percentage of. Anything. I am just wondering if there were some services, like this drainage; I thought the public works department was working on taking care of failed terracotta and the perimeter drains on the building and… Mayor Lozeau I would be happy to explain. I asked the same question because I didn’t want to have the work done twice. As you know we put CDBG money aside for this work. The design work has been done by public works, by the engineering department. This relates to the damage to the building from the infiltration not the actual infiltration work in design. Finance – 07/21/10 Page 3 They are looking at the damage to the foundation, the mold, all of those things that are a result of that water infiltration. Then they will likely pick up work as it relates to the water infiltration that is coming from the roof leaks that we have been unable to determine the location of, and what might be done there when we get our arms around that. Alderman Deane Is that a skylight that is leaking? Mayor Lozeau They are not sure what is leaking exactly. I was talking to Mr. Matthews about it earlier and one of the things they are looking at is potentially having a smoke test done through the roof drains and things like that to see if they can determine the leak. That is one of the options that has been put on the table because they are really having a hard time pinpointing where it is. The Fire Department offered to go over and hose down the roof and see what they could find out that way… Alderman Deane The problem with doing that is water seeks the point of least resistance so you could be having a leak… Mayor Lozeau Right. Alderman Deane You have them in here with these AC condensers. The leak may be over there, but the water travels and drips over here, which necessarily doesn’t mean the leak is right up above. Mayor Lozeau Right so that problem hasn’t been resolved Alderman Deane. So the primary focus of this contract with the architect is to get the project started, get the design development done, the contract documents for the contractors that are going to come in, help with the bidding and negotiation of that contract, and then do oversight of the work being built to spec. That is the primary function of this amendment. The contract has been somewhat inactive, but because they already did the majority of the work in the report and that work is still valid, it seemed this was the most cost effective approach. Alderman Deane So this is additional work that they are going to be paid for and then we have the additional contractual percentage they get for overseeing the project when people are hired to go in and do the work. Say we get someone to do the air conditioning in there for $100,000 and they get a percentage of that bid price for overseeing the installation of the air conditioning say. I forget how that works. I think that is how that works. Mayor Lozeau I think originally it worked that way, but we had them come in and meet with us, and we talked about having finite numbers in that we had a budget and our intent was not to come in over a million dollars. They agreed to that. Finance – 07/21/10 Page 4 Alderman Deane So the original contract that they were hired under has changed? Mayor Lozeau Has been amended. Alderman Deane When was that done? Mayor Lozeau That is what is here now. Alderman Deane I’m talking about the percentage of the monies they get when… Mayor Lozeau That was changed as part of this amendment. They agreed to not do it that way, to give us specific prices, which is what this is, and then anything further would be the same. Alderman Deane What I am getting at is I was under the impression that any time we hired a sub-contractor to do work in there they got a percentage of that contractor’s base to oversee it. So now what you are telling me is this $45,000 is all they are going to get for all of the work they do up to that million dollars … Mayor Lozeau They could potentially come in and request more funds for any extended oversight that we may want them to do, but for this work here it is $45,000 irrespective. There is no additional cost percentage for work being done of others. You’re correct that is how the contract had been designed in the first instance. As part of this amendment, we have requested that not be the case and we have agreed to a price. Alderman Deane So they are the architect and they are going to do the design, development, contract documents, and bidding and negotiation phase services for the scope of work remaining to be done and generally outlined in the master plan. Mayor Lozeau Correct. Alderman Deane This isn’t going to offer any oversight? Finance – 07/21/10 Page 5 Mayor Lozeau There is some oversight being offered and we’re pushing for all oversight. I think we are going to probably achieve that. Alderman Deane But that is not what this says though. Mayor Lozeau I understand that. Alderman Deane So currently the scope of work is listed in that first sentence in the second paragraph and then the second sentence basically gives the layout of what the scope of work is. That is it. So the original contract that they signed will be amended with this first sentence, but they won’t be there to do any oversight. So that has been removed? Mayor Lozeau Their response to us Alderman Deane about complete oversight is they estimate complete oversight from beginning to end to be up to $15,000 in addition to this $45,000, but there will be some oversight within this $45,000. So we may come back with a second amendment depending on what the design work looks like and what we want to do, but when I talk about not exceeding a million dollars that includes their fees. Alderman Deane I’m still lost on this. The oversight has just been totally removed then from the original contract? Mayor Lozeau No. It has some oversight. What it doesn’t have is oversight for the entire job from beginning to end. That is some of what we are still working with them on, but what we have agreed to is this next phase that is here before you. Alderman Deane So this is almost like a separate contract then outside of the original one. Wouldn’t you kind of put it that way? You are amending your prior agreement, but it is like a total separate contract from the original one that was signed just for the scope of the work that is listed in the second sentence. Mayor Lozeau I understand what you are saying, but I don’t see it that way. What we did was we achieved getting out of costs that we couldn’t carry anymore of the percentage basis that you just mentioned, and instead got a fixed price for this scope of work. Alderman Deane What was their fee? Wasn’t it like 10% or something? It was kind of high. Finance – 07/21/10 Page 6 Mayor Lozeau I can’t recall what it was. Alderman Deane I remember when I served on that board every time we had problems with light bulbs and we had to buy light bulbs they would come and look at the problem and they would charge you to tell you that...it was insane. I can understand their expertise because of the historic nature of the building and not wanting to put anybody in there with a sawzall and sledgehammer chopping holes through the walls, etc. They were trying to keep things so they were architecturally aesthetic to the original design of the building and still get the same end result. Mayor Lozeau The other piece Alderman Deane, as you know, we don’t have a facilities department, we don’t have someone that can oversee work on all of our city buildings, and as we have passed legislation to get work done here at City Hall and other places, we’re coming on the time where we have to get a project manager on board to oversee this work. We all know what happens when we don’t have an experienced project manager on board. We only have to look to Riverside when the City said we can’t afford someone, we don’t have someone, hey so and so this is your job now, and it doesn’t work out the way we would like it to. It is hard to hold someone accountable that doesn’t have the skill set that we’re looking for. From my perspective, this buys us enough to keep the ball moving forward on what the next phase is and reserves some time for us to look at if we get the project manager on board for some of the city buildings is this something they will be able to take some role in as well and depending on what they are able to do it will make a difference on what we might do next with this architect. We’ve got the garages as you know, City Hall, Mulberry Street at some point, the Hunt, Court Street. Alderman Deane So in essence what you are saying is for $45,000 we will now have someone on the hook being HDB/CRAM & Ferguson, for a liability to the work that is being performed over there. So if there are problems we can turn on them and they will be liable because they are being paid for the oversight of this work that is going to be performed. Mayor Lozeau Yes. And again as I said the oversight isn’t everything. To get everything, they have proposed an additional between $10,000 and $15,000 depending on the designs that they come up with. But this is oversight for what is next. We will keep pushing to see how much we can get. I am not prepared to let any work go on there unless we have somebody that we are holding accountable for the work. Alderman Deane It is like Riverside. There was plenty of opportunity to pursue the deficiencies over there through the documents that were presented, and the City chose not to do it. Mayor Lozeau The problem would have been different though I am sure you would agree if we had a project manager that had the experience to do what needed to be done there. Finance – 07/21/10 Page 7 Alderman Deane The deficiency report that I saw just on the HVAC part of that I think one of our elementary school classes could have looked at it and said yeah there is something wrong here. Young children would have picked up on it, but that didn’t happen, and then we decided not to take any action on it. Thank you. I just wanted to try to understand. So Cram & Ferguson are going to be on the hook and they are going to be liable so if we have problems we have an avenue to go down and pursue. Mayor Lozeau At this stage, I would agree with that. Alderman Deane Thank you very much. Mayor Lozeau Is there further discussion on this item? Alderman Clemons I just would like to note the arrival of Alderman Vitale at 6:35 p.m., Alderman Craffey at 6:45 p.m. and Alderman McCarthy at 6:45 p.m. Mayor Lozeau Thank you. Further discussion? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Broad Street Parkway Planning Phase Contract Amendment #2 Requested By Division of Public Works (Value: $228,300) Account: 753-53075-3740 Broad Street Parkway Construction Project Account Balance Remaining After Purchase: $36,428,732 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AUTHORIZE, CONTINGENT UPON BOARD OF PUBLIC WORKS APPROVAL, AMENDMENT NO. 2 TO THE CONTRACT WITH HAYNER/SWANSON, INC. FOR A NET CHANGE IN THE AMOUNT OF $228,300. FUNDS ARE AVAILABLE IN ACCT. #753-53075-3740 MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Additional Truck Attachments Requested by Park Recreation Department (Value: $44,391) Account: 552-68045-6911 Vehicles – Park Recreation Account Balance Remaining After Purchase: $35,609 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO HOWARD P. FAIRFIELD IN THE AMOUNT OF $44,391. SOURCE OF FUNDING IS ACCT. #552-68045- 6911 Finance – 07/21/10 Page 8 ON THE QUESTION Mayor Lozeau I will point out that the Board of Public Works did support this. MOTION CARRIED Alderman Clemons I would note the arrival of Alderman Chasse. From: Robert Gabriel, Purchasing Manager Re: Contract Award for Electronics Recycling Requested by Solid Waste Department (Value: $100,000) Account: 801-59100-8300-8400 Miscellaneous Recycling Services Account Balance Remaining After Purchase: $23,000 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO UNIVERSAL RECYCLING TECHNOLOGIES IN AN AMOUNT NOT-TO-EXCEED $100,000. FUNDS ARE AVAILABLE IN ACCT. #801-59100-8300-8400 MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Milling & Pavement Treatment Program Requested by DPW Street Department Value: $99,454) Account: 590-23555 FY11 Prior Year Escrow Account Balance Remaining After Purchase: $20,546 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT, CONTINGENT UPON APPROVAL OF PRIOR YEAR ESCROW, TO HUDSON PAVING IN THE AMOUNT OF $99,454. SOURCE OF FUNDING IS ACCT. #590-23555 MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Sodium Bi-Sulfite Chemical for Wastewater Treatment Facility (Value: $70,000) Account: 802-45105-8500-8900 Sodium Bi-Sulfite - NWTF Account Balance Remaining After Purchase: $0 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO HOLLAND COMPANY AT A UNIT PRICE OF $1.44/GALLON WITH ESTIMATED FY11 PURCHASES TOTALING AN AMOUNT NOT-TO-EXCEED $70,000. FUNDS ARE AVAILABLE IN ACCT. #802-45105- 8500-8900 ON THE QUESTION Mayor Lozeau The members will note that the next four items are all of the chemicals related to the waste treatment facility. All but one of them were two year contracts with an option to renew for two one-year increments, and each of them you will see in this memo has a substantial savings over the prior year, which I really have to say that the Finance Manager over at public works and the Purchasing Manager really did a lot of heavy lifting to make that happen. I just didn’t want to let that go by, they really worked hard on it. Is there discussion on this item? MOTION CARRIED Finance – 07/21/10 Page 9 From: Robert Gabriel, Purchasing Manager Re: Purchase of Sodium Hydroxide and Sodium Hypochlorite Chemicals for Wastewater Treatment Facility (Value: $139,600) Account: 802-45104-8500-8900 Sodium Hydroxide – NWTF $9,600 Account Balance Remaining After Purchase: $0 Account: 802-45103-8500-8900 Sodium Hypochlorite – NWTF $130,000 Account Balance Remaining After Purchase: $0 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND EXTEND THE CONTRACTS WITH JONES CHEMICAL AT A UNIT PRICE OF $2.337/GALLON AND $0.7885/GALLON RESPECTIVELY, WITH ESTIMATED FY11 PURCHASES TOTALING AN AMOUNT NOT-TO-EXCEED $139,600. SOURCE OF FUNDING IS ACCTS. #: 802-45104-8500-8900 ($9,600) AND 802-45103-8500-8900 ($130,000) MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Polymer Chemicals for Wastewater Treatment Facility (Value: $160,000) Account: 802-45101-8500-8900 Polymer – NWTF Account Balance Remaining After Purchase: $0 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND EXTEND THE CONTRACT WITH BASF AT A UNIT PRICE OF $2.26/LB FOR THE Z-7587 AND $1.64/LB FOR THE Z-7878, WITH ESTIMATED FY11 PURCHASES TOTALING AN AMOUNT NOT-TO-EXCEED $160,000. FUNDS ARE AVAILABLE IN ACCT. #802-45101-8500-8900 ON THE QUESTION Mayor Lozeau This is the item that was an exception to what I just said about the next four chemicals. This one is a sole source, but they gave us the same price as last year. Is there discussion on this item? Alderman Deane I wonder if we could find a closed supplier than Suffolk, VA. Where does the City of Boston get their polymer from do you know? Mayor Lozeau No I don’t but I… Alderman Deane We should call them up and ask them. Mr. Gabriel maybe call up the treatment plant down there and say where do you get your polymer from? They would probably say Everett, MA or something. It is inclusive of the drop ship I guess right? Isn’t that what it says? Robert Gabriel I think they have a holding area up near the… Alderman Deane Oh they do? So they truck it and they stockpile it and then they ship it? Finance – 07/21/10 Page 10 Robert Gabriel …in the Boston area. Alderman Deane I guess if you google polymer factories you will probably only find one in the country right in Virginia somewhere? Mayor Lozeau They didn’t think there were a lot of them. It is kind of a specialty. Alderman Deane Someone has cornered the market Mayor. It might be a good way to make some money. Mayor Lozeau I don’t know. After what I learned about what they actually do and that they are electrically charged… Alderman Deane Well everybody needs it. Mayor Lozeau …what purpose they have. I am glad they have it, but that is enough. Alderman Deane Well we use 66,000 pounds of it over the years so. Mayor Lozeau We certainly do. Well we are contributing to the wastewater treatment plant on a regular basis let’s just say. Is there further discussion on this item? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Ferrous Chloride and Ferric Chloride Chemicals for Wastewater Treatment Facility (Value: $99,770) Account: 802-45106-8500-8900 Ferrous Chloride – NWTF $81,320 Account Balance Remaining after Purchase: $0 Account: 802-45116-8500-8900 Ferric Chloride – NWTF $18,450 Account Balance Remaining after Purchase: $0 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND EXTEND THE CONTRACT WITH KEMIRA WATER SOLUTIONS AT A UNIT PRICE OF $0.69/GALLON AND $0.84/GALLON, RESPECTIVELY, WITH ESTIMATED FY11 PURCHASES TOTALING AN AMOUNT NOT-TO-EXCEED $99,770. SOURCE OF FUNDING IS ACCTS. #802-45106-8500-8900 ($81,320) AND 802-45116-8500-8900 ($18,450) Finance – 07/21/10 Page 11 ON THE QUESTION Mayor Lozeau This is the last chemical item, and this one had the greatest savings. Alderman Deane Would Mr. Gabriel know if there is an area closer than Lawrence, Kansas where this is… Robert Gabriel It is the same situation. Alderman Deane They have vats around here filled with Ferrous Chloride and Ferric Chloride. Mayor Lozeau Is there further discussion on this item? MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Extension for Biosolid Sludge Proposal Requested by Wastewater Treatment Facility (Value: $537,000) Account: 802-59225-8500-8900 Sludge Disposal – NWTF Account Balance Remaining after Purchase: $173,000 MOTION BY ALDERMAN CLEMONS TO ACCEPT AND PLACE ON FILE ON THE QUESTION Mayor Lozeau Again, it is just we are holding discussion until we get to the resolution. MOTION CARRIED Mayor Lozeau Before I recognize the Clerk again, I just want to let the committee know that R-10-43 relative to the Holocaust Memorial, and R-10-38 relative to the towing contract, I am holding until the August 4th meeting of the Finance Committee. I just wanted to let people know. UNFINISHED BUSINESS - None NEW BUSINESS – RESOLUTIONS R-10-34 Endorser: Mayor Donnalee Lozeau APPROVING A THREE-YEAR AGREEMENT WITH SERIALS SOLUTIONS FOR THE AQUABROWSER LIBRARY BROWSING SOFTWARE Finance – 07/21/10 Page 12 MOTION BY ALDERMAN CLEMONS TO RECOMMEND FINAL PASSAGE ON THE QUESTION Mayor Lozeau This is one of the ones that we talked a little bit about at the last finance meeting. This is the public catalogue system. The one we talked about last time was kind of the infrastructure of their system. This is the piece that the general public will notice the most. It is here because it is a multi-year contract, which provided significant savings. Is there further discussion? Alderman Deane You have to utilize this by actually being at the library? Mayor Lozeau No; it is both on site and on line. Alderman Deane Okay. Mayor Lozeau Actually it is pretty interesting. You can search all 47 of the library databases with one search. The way it is today you go in and you search under books or under magazines or things like that. It will only search one kind of category at a time. This new search engine and public catalogue system will allow you to put something in and it searches everything they have to look in. It is pretty remarkable. Alderman Deane And this is what we are using now, the same feature? Mayor Lozeau No. What we use now is very different than this, the way it has been explained to me. Alderman Deane Why did we sole source it? Mayor Lozeau Because they are the only ones that provide this kind of comprehensive service. They would have liked us to have a longer contract than 3 years, but as the Library Director said the last time she was here, her concern is that as quickly as technology changes there may be something else 3 years from now that might better serve people. Alderman Deane I share her fear. Finance – 07/21/10 Page 13 Mayor Lozeau Any further discussion? MOTION CARRIED R-10-43 Endorser:Mayor Donnalee Lozeau Alderman-at-Large Barbara Pressly Alderman Arthur T. Craffey, Jr. Alderman Kathryn D. Vitale Alderman Diane Sheehan Alderman Michael J. Tabacsko Alderman-at-Large Brian S. McCarthy AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT WITH HOLOCAUST MEMORIAL IN NASHUA, INC. RELATIVE TO THE CONSTRUCTION OF A HOLOCAUST MEMORIAL AT ROTARY COMMON AND AUTHORIZING THE ACCEPTANCE OF THE HOLOCAUST MEMORIAL MOTION BY ALDERMAN DEANE TO TABLE MOTION CARRIED R-10-36 Endorser: Mayor Donnalee Lozeau APPROVING A THREE-YEAR AGREEMENT WITH RESOURCE MANAGEMENT, INC. FOR BIOSOLIDS RECYCLING SERVICES MOTION BY ALDERMAN CLEMONS TO RECOMMEND FINAL PASSAGE ON THE QUESTION Mayor Lozeau Is there discussion on this item? Alderman Deane Is there a sense of urgency with this? Mayor Lozeau Their contract has expired I believe. Moving forward makes sense. As you know, the Board of Public Works has supported moving forward. Alderman Deane The Board of Public Works took action on this? Mayor Lozeau I believe we did yes at the last meeting. Finance – 07/21/10 Page 14 Alderman Deane I don’t remember that… Mayor Lozeau Board of Public Works June 14th meeting. This had had a very long… Alderman Deane They took action on a contract. They didn’t take action on the resolution. There was nothing referred to the Board of Public Works at the last meeting. Mayor Lozeau You are correct, but the Board of Public Works took action to agree to award the contract to this company. It had had a very long contract before, and now this is a three year contract. We had this company probably nine years ago. I recall Alderman Deane when we talked a little bit about it there was some discussion about fuel charges. You were concerned about fuel charges, and over the 9 years that we had them in place as fuel prices, as some of you can remember, were going pretty astronomically high over that period, they would come in periodically and ask for a fuel surcharge, and we refused that because their contract didn’t call for it or allow it. This time when they came in with this three-year contract they did put in something for the first year for a $2/ton charge. That is why you see it go up by over 7% in the first year. But then in the next two years it is at the same 3.5% that it had been in prior years. This company, and one of the reasons that they have been recommended, is because they are really the only company that can manage the demand that we have in Nashua, and not just the removal of our bio-solids, but the responsibility for where they go and what kind of sludge removal we have. For instance, we have had, on more than one occasion we have had to have them take raw sludge out, which is very hard to find somebody willing to do that. This company has really from the staff’s perspective been very tried and true to deliver what we need at a reasonable rate. And they couldn’t find anybody that would do better. Alderman Deane The raw sludge removal was that during the time when we had a crack in the digester? Mayor Lozeau Right. Alderman Deane And they had to repair it? Mayor Lozeau Right. So then there was raw sludge instead, which is very different. We pull out about 175 wet tons a week. Alderman Deane Pull out what? Finance – 07/21/10 Page 15 Mayor Lozeau About 175 wet tons a week. Alderman Deane Well with these presses going in that is going to be reduced significantly. Mayor Lozeau And that is one of the reasons that this is a not to exceed because we are ensuring that things will be weighed and we are going to keep track of how that process goes. As our sludge gets better in the dewatering system and the presses, all of that stuff takes weight out of it, and of course the contract is based on the tonnage. It should only get better. Alderman Deane Any time you are paying by the ton and any of the weight you can pull out of an existing ton to reduce the capacity I guess that you are trucking even though a ton is a ton, but you are removing more volume… Mayor Lozeau Exactly. Is there further discussion on this item? Alderman Deane I’m of the opinion that sludge digester was one of the best things the city has done in a long time. If you look at that sludge that all used to be trucked down to the solid waste, down to the landfill – all day long. When the metal tires on the compactor cracked and they had to go in there and repair those things, what do you think they were full of? Mayor Lozeau Like I said I think it is great that there is a company that now owns our sludge and takes responsibility for it. Alderman Deane Well we had to purchase sludge too when we first fired the digester up. Not many people go out and buy that either, but we did. It is just a reality of life Mayor we have to deal with it. Mayor Lozeau And we are very fortunate that we have a system in place that does a really great job doing it. And by the way our sludge currently is at a quality that can be used in other communities and other community’s sludge can’t be used in their own communities. Alderman Deane Isn’t it a B grade biosolid? Mayor Lozeau Yes. Finance – 07/21/10 Page 16 Alderman Deane Can be spread on farmlands? Mayor Lozeau Correct. Alderman Deane Better than filling up the landfill with it. Mayor Lozeau I agree. As it gets better, it will actually be a little bit more in demand. Hopefully we are done on this unless anybody else would like to… MOTION CARRIED R-10-38 Endorser: Mayor Donnalee Lozeau APPROVING A FIVE-YEAR AGREEMENT WITH THE NASHUA TOWING AND RECOVERY ASSOCIATION MOTION BY ALDERMAN DEANE TO TABLE MOTION CARRIED R-10-46 Endorser: Mayor Donnalee Lozeau Alderman Diane Sheehan Alderman-at-Large David W. Deane APPROVING A FIVE YEAR THIRD AMENDMENT TO A LICENSE AGREEMENT WITH UNITED PARCEL SERVICE, INC. FOR PARKING ON WHIPPLE STREET FOR MINE FALLS PARK MOTION BY ALDERMAN CLEMONS TO RECOMMEND FINAL PASSAGE ON THE QUESTION Alderman Deane I believe again this contract was approved by the Board of Public Works, but the legislation was not referred to them at the last meeting. Mayor Lozeau Thank you. Alderman Deane I am wondering, how much of this parking lot – does the soccer program still really that big? Mayor Lozeau Yes. Finance – 07/21/10 Page 17 Alderman Deane I see them down there playing softball and I know there is soccer. Everything seems to dwindle down a little bit as the kids ..when you look at the enrollment there was at the schools the population in that area, the younger kids anyway is kind of down a little bit. It’s nice that UPS is willing to work with us. Mayor Lozeau And sharing the costs with the soccer group has helped as well. This contract used to be just an annual contract as you know. But the process of going through UPS to their headquarters… Alderman Deane It had to run up to the President of the company to get approved. Mayor Lozeau It has been a lot of work for the purchasing department so coming in with a multi-year contract seemed to make some sense. That is why it is here. Alderman Deane And there was no increase in the out years? It remained flat? Mayor Lozeau I am pretty sure it remains flat yes. Mr. Gabriel are you nodding yes, am I correct? Thank you. Alderman Deane Thank you. Mayor Lozeau Is there further discussion on this item? MOTION CARRIED NEW BUSINESS – ORDINANCES – None DISCUSSION Alderman Deane Thank you. I would like to know where I can find the account numbers for the stabilization or revitalization, that $1.5 million, where that is located in the Warrant and what the account numbers are. Mayor Lozeau I can’t tell you off the top of my head where that is, but I will be happy to provide it to you. Finance – 07/21/10 Page 18 Alderman Deane I tried to see where the $6,500 out of the Risk Management Department where that was. I couldn’t find that in the Warrant either. Was that out of 308? Mayor Lozeau Nobody will know that off the top of their head Alderman Deane, but I will be happy to provide you with that information. Mayor Lozeau And the contract for the work that was performed down there? Mayor Lozeau As I explained to you at the Finance meeting when that came up Alderman Deane, the P.O. was the contract. At the time, I told you that a contract was being drafted if the funding source required one. They did not require one. I have the draft, but we never signed it. It all happened in the course of a day or so. The P.O. is what we used as a contract. I verified with Legal that the P.O. is in fact a contract as it has terms and conditions, and that was filed with the City Clerk with all of the information as required. Alderman Deane I think that needs to be changed. When you look at the documents, the P.O. says we are paying $50,000 for some bricks. That is what it says. It doesn’t give any scope of what the money was spent on, how much it cost to put the roof on, who is paying rental on the fence that goes around the building. Whether you agree with the project or not, I still think there should be some more detail than just a P.O. that says we’re paying $50,000 for some bricks. I don’t think that is adequate information, and I think having the Legal Department saying a P.O. is good enough for a contract… Mayor Lozeau It wasn’t quite like that. Alderman Deane Well… Mayor Lozeau As you recall, the building was in the process of being demolished. There was a wrecking ball on site, there were people doing work, and they were taking the building down. The $50,000 stopped the work, covered the cost of the equipment likely that was out there, that was the price they gave us, and allowed us to keep the bricks on site and fence the site. The tarp was not part of that $50,000 contract and the rental on the fence is something that the City pays and that wasn’t part of the $50,000 contract. If you would like an accounting of where the money came from and which lines, I am more than happy to provide that information. Alderman Deane I have an interest in understanding how the money was spent. Finance – 07/21/10 Page 19 Mayor Lozeau I have no objection to that. Alderman Deane When you look at it, it is just doesn’t bode well when you look at the P.O. and that covers – I guess that covers the provision of 590G according to the Legal Department right; the P.O. is a contract so that covers the provision of the filing with the City Clerk’s Office when there is not time to convene the Finance Committee to make a decision on whether we should go forward or not with that. Mayor Lozeau Alderman Deane I have said on more than one occasion that had to be done the same day to stop the work. The building was coming down. All I could do was stop it. In order to stop it the only thing I could do was make an agreement with that company that was on site and pull a P.O. to get that to stop, and that is what we did. We checked with the funding source to verify that they would allow their dollars to be used for that, and we did it, and it was their dollars that we used for that not City dollars. I think that was clear last night in our committee discussion. I am not certain it was clear in… Alderman Deane That is not my point. Mayor Lozeau I understand that is not your point, but … Alderman Deane My point has nothing to do with the building. My point has to do with the process. My point has to do with disseminating something that is actually part of what is going on at least with some detail of what functions were performed, what scope of work was done, and what the cost was. And assigning $50,000 to a P.O. and calling it a contract and stating in the P.O. that it was to retain bricks, and that is basically what it said, but obviously there was more to the project than that. I always looked at this provision in the ordinances as being utilized when sewer lines collapse in a street. That has got to be fixed because it creates hardship and health issues to the community and a danger to anybody driving on the street or people that live in that portion of the community. Now it seems like the ordinance is being utilized for much greater things. I think in some instances decisions were made that I think this board should have had some say in. I really do. When it comes to a sewer line collapse in a street that is kind of – I wouldn’t see convening the Finance Committee for that. I think everybody is of an understanding, but when we are dealing with a building that is privately owned that you want to stop tearing down I think that we should have convened and had a meeting and explained to people what was going on. I just think that should have been done. That is my feeling. We have this rooftop unit on 14 Court Street… Mayor Lozeau It isn’t the rooftop unit. Finance – 07/21/10 Page 20 Alderman Deane Pardon me? Mayor Lozeau It is not the rooftop unit. It was the… Alderman Deane Air handler. Mayor Lozeau Right. Alderman Deane But it says rooftop in the … Mayor Lozeau Well let’s take one at a time. As far as the Labine building, I don’t think I could have been more forthright with this board than I was. I used my remarks on more than one occasion to talk about that property. It was very clear to me that a majority of this board agreed that building should be saved. That demolition contract was going forward. They had a contract with the private owner to take the building down to the ground. Within that weekend span, I had less than a day to make a decision. Now if knocking a building down isn’t an emergency because we can’t put it back up…I understand your point and I understand your point if I was using it in a way that I think was contrary to how this board felt or if I was doing it without anybody knowing until I had an opportunity to skirt the board and do it another way. That is clearly not the case here. This information had been talked about from the day of the fire and all the way through. Whether it had an official convening of the Finance Committee to discuss it, you are right we did not. That decision had to be made, I made the decision. When you look at Court Street, when you are in a situation where we as the landlord have functions scheduled, contracts signed, payments made and you have a health and safety issue in there where a 1972 air handler stopped working and I have the maintenance building manager in my office, Risk in my office, and the person responsible for Court Street in my office saying it has a catastrophic failure, we cannot use it, it is 90 degrees in the theatre and there is a performance coming up within two days. That was at noon on a Friday. I had to make a decision. We could have convened the committee and all said yup it is broke, guess you should fix it. To me that was just as obvious as a sewer collapse because people… Alderman Deane Just as obvious as what? Mayor Lozeau As a sewer collapse. It is something that happened that had to be fixed. We had signed contracts at the time with Stagecoach, Peacock, and Actor Singers for performances in the month of July. Within that same day not only did we have to make sure that we could get the parts ordered and try not to have to move – our goal was to get it done and fixed by the end of July so the August performances could take place so we had to get things relocated, which we did within an hour, we had to make sure that we could get the parts, get the work done, Finance – 07/21/10 Page 21 and move forward. I couldn’t let people be in that theatre. It was 90 degrees without any bodies in it, imagine if we would have put the kids in there rehearsing. Alderman Deane Is the work completed? Mayor Lozeau The work will be completed by July 31st. The parts had to be ordered. Alderman Deane So between now and 31 July is there anything going on in there? Mayor Lozeau No. We have relocated. And this only affects the theatre not the office space that we are leasing, but the theatre itself. All three performances were relocated. Some of the performances have already taken place. But the school worked with us and relocated all of those performances to Nashua High School South. We were very fortunate because we all worked together. When there are circumstances like that and the staff comes in and works with me and makes recommendations, I have to count on them. I could have gone over and looked at the air handler, but frankly I knew that they were right, and I have quite a bit of confidence in our building manager. Alderman Clemons I just want to say that on both of those decisions, I think you made the right decision and I will back you up on them. Mayor Lozeau Thank you. I appreciate that. Is there further discussion? Alderman Pressly I would like to have the record show that I also support those two decisions. I believe that you did and the City did the right thing. Mayor Lozeau Thank you. I appreciate that. Is there anything further under discussion? Alderman Deane Thank you for your time Mayor. I appreciate it. Mayor Lozeau You are welcome. Finance – 07/21/10 Page 22 WARRANT MOTION BY ALDERMAN CLEMONS TO APPROVE WARRANT #1 IN THE TOTAL AMOUNT OF $11,657,633.62 OF WHICH $2,708,792.34 ARE ACCOUNTS PAYABLE, $6,616,851.69 ARE PAYROLL AMOUNTS, $63,362.70 ARE PREPAY AMOUNTS AND $2,268,626.89 ARE WIRE TRANSFERS MOTION CARRIED ADJOURNMENT MOTION BY ALDERMAN CHASSE TO ADJOURN MOTION CARRIED The Finance Committee meeting was adjourned at 7:20 p.m. Alderman-at-Large Ben Clemons Committee Clerk