Finance Committee

REPORT OF THE SPECIAL FINANCE COMMITTEE SEPTEMBER 7, 2010 A special meeting of the Finance Committee was held on Tuesday, September 7, 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-at-Large Barbara Pressly Alderman Kathy Vitale Alderman Arthur T. Craffey, Jr. Members not in Attendance: Alderman Paul M. Chasse, Jr. Also in Attendance: David Bryson, Project Manager, Jordan Institute Jay Hunnewell, Building manager Mayor Lozeau For the record, Alderman Chasse provided notification he might not be able to join the committee for the special meeting tonight. COMMUNICATIONS MOTION BY ALDERMAN CLEMONS THAT THE RULES BE SO FAR SUSPENDED AS TO ALLOW FOR THE INTRODUCTION OF TWO COMMUNICATIONS RECEIVED AFTER THE AGENDA WAS PREPARED MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Revised Memo 11-042 Net Metering Project Construction Phase Change Order #1 (Value: $60,000) Account: 792-01310-3743 Construction - Net Metering Project Account Balance Remaining After Purchase: $43,468 MOTION BY ALDERMAN CLEMONS TO ACCEPT AND PLACE ON FILE ON THE QUESTION Alderman Deane Before we run through this, can we be enlightened as to the difference between this memo and the prior communication? Mayor Lozeau If you look on the memo, he put a line next to the paragraph that was changed and then he italicized the new language. It was because of the concern about the terminology that was used with ballpark. What we had said was that we would bring in that revised language for this meeting so that the record would reflect that we were voting consciously based on those decisions. Alderman Pressly Would you explain what you are looking at? Special Finance - 09/07/10 Page 2 Mayor Lozeau On the one that Mr. Gabriel just handed out Alderman Pressly, the net metering. Alderman Pressly Thank you. Mayor Lozeau On the back side you will see the line and the words in italic. It is the new language that he added. Basically he is explaining exactly what he did from the microphone last week, but he has put it in writing here so we could incorporate it into the record. Alderman Pressly So by approving this we accept this exchange? Mayor Lozeau We are just accepting this to be added to the record. Alderman Pressly May I bring up something that is related but not directly? Would it be possible to find out a total of how many ARRA funds have come to and benefited the City at this point? Mayor Lozeau Yes. Alderman Pressly Okay. Great. Mayor Lozeau I will work on seeing how quickly we can get that together. Alderman Pressly Okay. Mayor Lozeau There are not that many projects actually. Alderman Pressly I think it is really important to understand that at some point. Do you expect more coming in? They seem to be sprinkled throughout what we have been doing. Mayor Lozeau I have learned not to expect much of anything. Special Finance - 09/07/10 Page 3 Alderman Clemons I know that a few months ago I did receive ... Mayor Lozeau I thought I had sent out a spreadsheet. Alderman Clemons I can look for it although it would be a few months old, but. .. Mayor Lozeau It hasn't changed. Alderman Clemons Okay. Then I have that. I can get that to you. Alderman Pressly That would be great. Mayor Lozeau As a matter of fact I think Mr. Gilbar put it on line before he left. Alderman Clemons It is a lot of money. Alderman Pressly I think it would be important to recognize ... Mayor Lozeau It is not a lot of projects, but it is a good size amount. Alderman Clemons It is over $10 million. Alderman Pressly That the city has benefited from ... Alderman Clemons Yes. Alderman Pressly Okay. From the Federal funds. Special Finance - 09/07/10 Page 4 Alderman Clemons Yes. Alderman Deane In order to qualify for the SRF loan, we have to spend the money in total before we get reimbursed. Mayor Lozeau It is a reimbursement pretty much like all of our waste water projects. I don't think any of them are... Alderman Deane What happens to the $30,000 afterwards? Does that go back into the ... Mayor Lozeau If we spend less? Alderman Deane It says here "Under the ARRA program the change order cost will be covered by the SRF loan and qualifies for 50% being forgiven by the NHDES." So how is that forgiven? Is that 50°,10 of $60,000, which will be $30,000 is forgiven? Mayor Lozeau Right. Alderman Deane So that means there is $30,000 that will be left in this 792 account? Mayor Lozeau Yes. Alderman Deane This is still being negotiated and we are just approving a language change. Mayor Lozeau Basically. Alderman Deane That is what I thought. Thank you. MOTION CARRIED From: James J. Welch & Co., Inc. Re: City Hall Building Improvements MOTION BY ALDERMAN CLEMONS TO ACCEPT AND PLACE ON FILE MOTION CARRIED Special Finance - 09/07/10 Page 5 Alderman Pressly Is there any way in the future that this could be enlarged a little bit? It is awfully hard to read. Mayor Lozeau Certainly. Alderman Pressly It is very small. Mayor Lozeau Certainly. Alderman Pressly Thank you. Mayor Lozeau You are welcome. From: Robert Gabriel, Purchasing Manager Re: Contract Award for City Hall Building Improvements Construction Phase (Value: $1,127,425) Account: 617-01 CIP - Building Maintenance and General Repairs $616,622 Account Balance Remaining After Purchase: $37,683 Account: 717-3732 City Hall Building Repairs - Bond $510,803 Account Balance Remaining After Purchase: $0 MOTION BY ALDERMAN CLEMONS TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON APPROVAL BY THE FULL BOARD OF ALDERMEN, AWARD THE CONTRACT TO JAMES J. WELCH IN AN AMOUNT NOT-TO-EXCEED $1,127,425. SOURCE OF FUNDING IS ACCTS. #617-01 ($616,622) AND 717-3732 ($510,803) ON THE QUESTION Mayor Lozeau I am going to begin this evening first of all by thanking the committee for agreeing to a special meeting or at least coming tonight, it is important. We had tried very hard to have this on last week's agenda, but we were still in discussion and some negotiations. But we are a bit under a time constraint because of improvements that have to be done to the building before the snow flies. I have asked Mr. Hunnewell our Building Manager and Mr. David Bryson from the Jordan Institute to join us tonight for discussion about this project. It is over a million dollars, and I thought it would be very important for us to walk through and have a sense of it. As some of you recall and some of you don't, I will give you a bit of a snapshot. When I first came in as Mayor one of the things that I came to the Board of Aldermen with were what I consider to be very important in the City and that is infrastructure improvements. From my perspective, that includes our buildings, which I consider assets that we are also responsible to maintain. On that list of properties, we had City Hall, Mulberry Street, which is our Public Health building, our two city garages, the Hunt Building, which you may recall last month we approved the Hunt project going forward, the Court Street building, and we have been making progress. We had the library roof and so we have made some progress. Special Finance - 09/07/10 Page 6 We put cash aside for as much of City Hall as we could do with cash and then we approved a $4.5 million bond for city buildings in general. Tonight the two gentlemen here are going to walk us through. We are going to start with Mr. Bryson who is going to give us a snapshot of the Jordan Institute's assessment of City Hall, and then when he is done with that we will go through the project costs and the determination of the winning bid. Mr. Bryson if you wouldn't mind beginning with a snapshot of what you found at City Hall that needed to be done. David Bryson Thank you. We started by doing a building-wide assessment to check primarily focusing on all of the energy usage in this building. We started by looking at the building shell by doing a blower door test and we checked the insulation where we could. We checked the systems in the building meaning we checked the heating, the air conditioning, the ventilation. We checked the windows. From that we developed a report, which we have presented to you. I believe that you may have all been presented that report. Our focus really out of the report was to reduce the energy usage in this building, which we believe is achievable by 25%. Our primary focus really is on the mechanical equipment; the air conditioning units and the controls therein and to repair the heating system, particularly the steam traps. We did do an extensive steam trap survey on the building and determined that more than 50% of the traps were actually failed; not working, which results in a significant amount of loss of steam. We also determined that the windows needed to be replaced or we recommended that, and they are under a separate contract that has begun. We also recommended insulating the building particularly the high attic roof. When we started looking at the roofs, we determined that the roofs were at end of life and that they should be replaced and increase the insulation in those roofs at that time. Mayor Lozeau You will see that this contract bundled multiple items that seemed to make sense to do as a collective group. As Mr. Bryson said, the windows are under contract. D.L. King & Associates, Inc. is in the process of doing that actually. Last Friday we got the first new window in. For those of you that are interested, you will see it right next door to the parking lot on the left side of the building as you leave the door. If you park in that lot you will see that window. It is very noticeable that it is new, but it fits in beautifully. Before we get into some of how the bid went, the document that was passed out tonight changes the number for this bid to $1,052,000 so a savings of $75,425 without changing the scope of service. When this memo went to print they were still wrapping up with J.J. Welch on what could be done. If you want to walk us through the bid process now and your summary sheet and then we can open it up to questions. I thought you might appreciate knowing if you look in the documents that you have, after the memo you will see a contractor evaluation summary sheet, and that is how they determined the bidder. David Bryson Before the bid process we actually engaged or you engaged Colby Engineering to define and design what would be needed for the HVAC system, the heating, ventilation, and air conditioning system. They spent a significant amount of time in the building investigating existing conditions and making note of those, and then came up with the design. At that point, we went .forth with bidding the work as a bundle. Originally we had thought we would or we were recommending to bid the HVAC work separate than the structural and separate from the roof replacement, but we did determine it was a better idea to bid all of the work together. We thought we would have more clout with the contractors, the contractors would have more clout with the market itself, and that you would get better pricing. The other thing we thought was important was the coordination and communication would be far improved if we had a general contractor doing the work rather than a number of different contractors all working at different purposes or potentially. Special Finance - 09/07/10 Page 7 So we went through the bid process. We ended up inviting over 36 different general contractors. We ended up with 6 bids. We then interviewed the 2 low bidders and went through an in-depth interview process to determine how well they understood the scope of work, if they had thought anything was missing, and we gave them both a chance to revise their bids if they so chose, if they thought that something was missing. We then completed what we call the contractor evaluation form, which you have in your package. I say we, the project team, which consisted of myself and John Gaston from the Jordan Institute, Jay Hunnewell from the City, our architect/your architect Christopher Carly and two engineers; structural and mechanical. Independent of one another we went through this evaluation and filled out forms to determine really how well we thought the contractors understood the work, their ability to communicate, their ability to meet schedule, whether or not they had included any overtime in the project, and then we scored them. There are more points you will see on the sheet; all points we considered to be important from the perspective of getting the best quality job on budget, on time. At the end of all of that, they submitted them to me, and then I compiled this one sheet, which you have and is really an aggregate of everybody's score. We all determined independent of one another that we felt that J.J. Welch was going to give you the best product. We then met and presented this information to the Mayor and her team, and it was suggested that we go back and interview Meridian Construction. It was a local contractor. We did that a couple of days later and went through the same what we call a pre-award interview with them. We determined once again, we only scored Meridian after that one, the results showed that we still felt that J.J. Welch was the best bid. Not just the best bid, but the best contractor for the job. We then re-presented this information to the Mayor and came forth with our recommendation to go ahead with Welch. I think probably the most important thing with them is that they seem to have .the experience and grasp of a project of this size and be sensitive to the fact that this building is always going to be occupied during the project. From our perspective things like accounting for overtime, Welch was the only one that in fact did account for any overtime realizing that there will be work done before you open in the morning when for example they have to do any drilling or coring in the building, that sort of thing. They were very sensitive to that and they are experienced enough to know that they should include that in their bid. The other two bidders did not do so. That is a telling point for us. We felt that was one of the higher points on the list. They also communicated very well with us, and in any of the follow-up, were very quick to respond on any point that we asked. That helps us and ultimately will help you. Their ability to limit change orders and stay within budget to meet schedule, which was a critical thing for us, if the contractor cannot meet schedule as we come up against winter, it was really an impossible thing. In fact, we typically wouldn't single out anyone in particular, but Meridian did not believe the schedule would work. He was the only one who didn't. That didn't help him unfortunately. Mayor Lozeau I am sure that the committee has questions. Alderman Pressly Thank you. I am just curious why you extended it to Meridian because they are all New Hampshire firms. Is there any reason? David Bryson Yes. In the bidding they were ... Alderman Pressly And it seems their bottom line is pretty close. Special Finance - 09/07/10 Page 9 Mayor Lozeau Mr. Bryson the context of the question is we frequently in the City have had work that has been done on buildings and streets that has never really had an accurate as built drawing. So when we go back to do things we drill in the wrong place because the drawings weren't done or weren't done accurately. We're doing new drawings for this building. Who is ... David Bryson I see. Well then your question is related to what particular sector, to the structural work or to the ... Mayor Lozeau All of the work. He will want all of it. Alderman Deane All of the mechanical work in the building should have as-builts. Everybody starts with good intentions, but sometimes you run into a steel eye beam or... 1mean Jay knows that, he has been in the field long enough and in a commercial setting there is nothing greater than having a set of plans whereas when you run into problems or something needs to be changed or worked on, Jay will have a set of plans where he can just pull them out and say this is where the ductwork is, this is where the steam pipes are, this is where the wiring is, and things of that nature so that future people down the road will have some sort of a roadmap of what went on in this building. David Bryson I apologize for being slow on the uptake. The answer is that the engineers will, Colby Co., will be responsible for all of the engineering both the structural and the HVAC plans, the as builts. Alderman Deane Okay so we are going to get a set of plans ... David Bryson As builts from them. That is in their contract. Alderman Deane Okay, and then when the plans that they submit for their work change, we're going to get an amended or as built set of plans. Their original good intentions plans compared to what. .. David Bryson Correct. Once the job is finished, you will get a set of as builts that describe the job and the building as it is. Jay Hunnewell I believe prior to any changes to the mechanical work, it will have to be authorized by Colby Co., and through us, through a project communication. We would keep all of that documentation and make sure the as built reflected that. Alderman Deane Who is going to oversee the work while it is being done? Special Finance - 09/07/10 Page 10 David Bryson I will. I'm sorry as well Colby will be here periodically. It is in their contract to come and oversee the mechanical work. Mayor Lozeau Alderman Deane as you know, one of our challenges in the City is without a facilities department it is really hard to have someone responsible for all of the buildings. Mr. Hunnewell has a lot of responsibility for this building. One of the things that I am looking at as I mentioned before is hiring a project manager for all of the city projects that we are undertaking right now; the garages, this building, the Hunt Building, etc. We have project managers that are doing some components, but we don't have one overall person that is responsible for things and we should certainly do that. On this project, we do have work that has been done ahead of time; the engineering drawings on the HVAC, things like that have been done, and then Jordan is also, not only are you overseeing some of that with the engineering company, but you are going to do the testing at the end ... David Bryson And the commissioning. For example on Friday we will be doing a blower door test in the Human Resource Director's office to verify that the first two windows that have gone in are put in properly and there is not any air infiltration. We already had someone from Jordan here on Friday supervising the first installation. Alderman Deane Are we letting another contract with the Jordan Institute to participate in this? Mayor Lozeau No. That is part of what they are already doing. David Bryson That is part of our contract. Alderman Deane So there is no real clerk of the works, and I understand Mr. Hunnewell's situation. If they run into problems, if there are mechanical issues where the plumber runs into problems with the ductwork who is there to sort out the ... David Bryson I am here. I am the point of contact and then I communicate with the engineers to coordinate anything that has to be done different. If need be, we would get the mechanical here or the structural here or the electrical. Alderman Deane The engineers are Colby Co.? David Bryson Colby Co. Alderman Deane Where are they located? Special Finance - 09/07/10 Page 11 David Bryson They are in Portland. Alderman Deane Portland, ME? David Bryson Correct. Alderman Deane I didn't really have time to go through all of this. This looks like a pretty boilerplate document anyway. It seems like industry standards are in this. Is there anything special in this, out of the ordinary that the city is requiring people to do that others wouldn't normally do? David Bryson No. Alderman Deane Are we putting smoke detectors in all of the ductwork that is being installed? David Bryson Yes. Alderman Deane And will our enunciator panel that is in this building somewhere be able to handle the addition of all of these duct smokes? David Bryson Yes. Alderman Deane So there is no money being spent on the fire panel, there is no upgrade to a fire panel? David Bryson No, and that is my understanding. I can double check that with the engineers, but my understanding in review of the project is there is not. And we have spoken with the Fire Inspector, both Mr. Hunnewell and I spoke with the Fire Inspector about this. We have had guidance and clearance from him. Alderman Deane That the enunciator panel in its current configuration will handle all of the additional smokes that will be put in? Special Finance - 09/07/10 Page 12 Jay Hunnewell The panel in my office, the fire panel, is expandable and can accommodate the additional duct smokes, but in reference to the enunciator at the foyer, I can't answer that question. I don't know. Mayor Lozeau But if it needs to we will make sure that it does. Jay Hunnewell If it needs to, it will be. The fire panel in the maintenance shop is expandable and can accommodate the additional smokes, but I am not sure about the panel that is in the foyer, the front door. Alderman Deane So that could be a potential problem down the ... Jay Hunnewell Colby Co. did do an electrical evaluation of the building. It should be in the bid set to accommodate that. It is well documented, the current status of the electrical system. Alderman Deane Is that included in this bid? David Bryson Yes. Is your question about electrical? Alderman Deane About the electrical. David Bryson Yes. Alderman Deane What would that be under MEPs? David Bryson MEPs yes. Alderman Deane What is that acronym? David Bryson Mechanical, electrical, and plumbing. Special Finance - 09/07/10 Page 13 Alderman Deane So all of that is rolled into that $570,000, which is still at $570,000? David Bryson And that to cross reference - for example on page 6 of the memo here that Mr. Gabriel and Mr. Fredette have written, the table at the bottom. You will see it is written as mechanical,plumbing, and electrical. Alderman Deane What portion of the existing ductwork will remain? When you come in here this ceiling is a plenum in here I believe so now we are going to have all of the return as well as whatever, there may be some supply that is not mechanical, or this is probably the supply and the returns are on the walls I guess, but so it is all going to be mechanical, it is all going to be ducted? David Bryson Yes it is all going to be ducted. As much as possible, we are using the existing ductwork. For example, in this room ... Jay Hunnewell That is the supply right there. Returns are back here. And that is well documented in the plans that Colby Co. provided to us. We are going to use as much of the existing ductwork as possible. There will be some other areas where we are going to have to add some to provide proper HVAC to those areas. Alderman Deane And I take it their engineering ability will tell you whether it is sized properly or not? David Bryson Well we are counting on them as professionals to size things properly. Alderman Deane That seems to be a huge problem in this building; things aren't sized properly. David Bryson I think one of the reasons that happens is because you have had a hybrid of systems built over the years rather than have a holistic or complete approach to your system. Alderman Deane I know that is why now we are looking at the complete approach, but we are going to possible maintain some of the existing ... David Bryson Where we can absolutely because first of all it makes sense from an economic perspective, and also if it works for the space thing it makes sense to do. Special Finance - 09/07/10 Page 14 Alderman Deane What if it is not insulated? David Bryson Well they will all have these plenums here, are insulated between the - in some cases these ducts will not be insulated because we are not going to access them. The new where they are near the exterior walls or they need to be insulated some of the new are going to be insulated. Mayor Lozeau As you know, this building is an amazing challenge ... Alderman Deane I know. I am just thinking what is going to stop the ductwork from sweating if it is not insulated - moisture and condensation? Mayor Lozeau They have made those decisions everywhere where they could get at it right? There are a few spots where they weren't able to get at spaces to look at it right? A couple of locations in between the floors where you have to go down like in this room - anything that is in this floor or the downstairs ceiling so to speak is a bit of a challenge" but other than that you know the answers. David Bryson Alderman Deane there is quite a bit of air circulating up in the plenum. It is not as if they are in tightly confined space. I think that the moisture that those ducts may give off will not be excessive. It is not as if they are in really really tight spaces where it can't evaporate. Alderman Deane Is this ceiling a plenum? David Bryson This is ... Jay Hunnewell There is a little bit of space between this and the floor of the auditorium - very little. There is more space in other areas of the building, but there is not much space here between the floor of the auditorium. All the ductwork that supplies this Chamber is on this wall here and the return goes back through the ... Alderman Deane The returns are up over the doors in the room there. Jay Hunnewell Right. Special Finance - 09/07/10 Page 15 Alderman Deane But the air space up above here - those are all perforated tiles right? Jay Hunnewell There is a hard ceiling above that. Those are glued onto a lath and plaster ceiling. Alderman Deane How much flexible pipe are you going to allow? When I was looking in here it is where it is applicable to use, but there is big friction problems with that because of the rings inside and the insulation. Basically it is flexible duct that is insulated with almost like a dryer vent insulation around it, but you end up having friction issues because of the rings. Are we going to try to hard pipe as much as humanly possible, all of our connections are going to be metal to metal in lieu of using some of this stuff or do you know what the overall plan is? David Bryson I have looked at the plans to some degree and reviewed them with the engineers. I do not, and perhaps I could look at this before I stick my foot in my mouth, but I don't think there is very much use of flexible ducting in this program. Alderman Deane So everything is drawn with hard pipes so we are not going to see ... David Bryson Everything we have on our plan shows as you call it hard pipe, ducting as opposed to flexible. Alderman Deane Those are the plans. What are we using for filtration? Are we using electronic? Are we using some other sort of filter media or... Mayor Lozeau If you are not prepared to answer that tonight without the engineering company - certainly Alderman Deane has a lot of experience here and he can look at the plans ... Alderman Deane I don't have a lot of experience doing much of anything, I am just wondering what decisions have been made. We are being asked to approve over a million dollars worth of work and this is bundled up into a $579,000. It is like all of the steam radiators in the building with our forefathers going in and doing some renovation work and taking a building that probably at one point in time was pretty well balanced and knocked it out of balance - it is like the radiators in this room back here, you can't even touch them and then you get other radiators that there is coils and traps and so on and so forth that knock and ping and some that stay cold that never see any steam through them. How are they going to go about balancing all of that? David Bryson First of all when we did the steam trap survey it was to determine whether or not the steam system was worth keeping. When we looked at how many traps had failed and had read through the report and met with them, the gentleman who did the survey, it was explained to us that it was really and truly an accumulation of low or Special Finance - 09/07/10 Page 16 little maintenance over time that had led to the deterioration of the traps, and as well traps do fail. That is a known fact. They have a lifespan of about 3-5 years. Many of the traps ... Mayor Lozeau We have 150 in the building. David Bryson ... have not been replaced and simply weren't functioning at all. What we have proposed or what they proposed was to replace the traps. It was initially suggested that we replace all of the failed traps and then when we looked at the notion that the other half of the traps or other third of the traps would have to be replaced within the next 3 years it was recommended that we go ahead and replace them all now, and then go forth with a regular annual maintenance program so you would avoid this kind of future. You can look forward to having that as an annual expense, but you would at least reduce the chance of you getting failed traps again and not getting proper steam and getting backup in your system. Alderman Deane Am I to understand it is not a balance issue, it is a steam trap issue? David Bryson Well I'm not an expert in steam traps sir so I really can't - I know that they said it was a combination of malfunctioning systems and that you really can't get a balance in your system if you have steam being wasted. Jay Hunnewell On the heating side for the steam, the other component is the controls; the aging compressor and the boiler room, the condensation and oil in all of the lines throughout the building that are buried within the walls present a problem with the actuators on the steam radiators. What Colby Co. has engineered for City Hall is a building management system that integrates all of the components for the HVAC system along with the heating side that can be monitored and controlled and work together so that when the heat is on the AC is not running and vice versa. That is an energy efficiency measure that we can benefit from here. Mayor Lozeau There are a lot of things that they are just not working well together. And then we have the challenge of where we have put up walls and doors where there weren't walls and doors before for the system, which has knocked things out of balance as well. Alderman Deane So the system is going to be balanced when they are done? David Bryson Yes. Alderman Deane We are going to have equal heat out of all of the radiators in the building and ... David Bryson And control over that. Special Finance - 09/07/10 Page 17 Alderman Deane And they are getting rid of the pneumatic controls? Mayor Lozeau Yes. David Bryson Yes. Alderman Deane Are they going to flush all of the lines in the building out before they proceed somehow? Are they going to pressure test that and blow all of the crud out of these? David Bryson No. Alderman Deane No? David Bryson No. There is some concern about doing that, that the pipes may not withstand that. It has been recommended they don't do that. Alderman Deane What are we running on about half a pound of steam in this building if that? Jay Hunnewell Half a pound of steam? What are we pushing? We are pushing 5-8 pounds of steam right now. Alderman Deane Why? Jay Hunnewell It is the way that it was engineered in '07 I guess with a $35,000 engineering change and upgrade to the boiler room. I want to say it was in January of 2007. Mayor Lozeau It was. Jay Hunnewell So that will bring that pressure down quite a bit by doing the steam traps and upgrading the actuators and the controls. Special Finance - 09/07/10 Page 18 Alderman Deane I think the Empire State Building only has 6 pounds of steam. It is a little taller than this building. What are we carrying for contingency on this side of the project? Mayor Lozeau One hundred and ten thousand we are carrying for the project, $111,000 maybe. Alderman Deane So you are carrying about 10 % • Okay. I wanted to go up on the roof. What are we using? Are we using the black EPDM rubber membrane? David Bryson Now? Alderman Deane No. Is that what we are going to put up there? David Bryson White. Alderman Deane So you are going to use white PVC? David Bryson No EPDM. Jay Hunnewell It was the EPDM. I believe that is what is specified. David Bryson That is what is specked. Alderman Deane What is the life expectancy on that 20 years? David Bryson Yes. The spec calls for 20 year guarantee on the roof. Alderman Deane Would it be possible to get a price with the PVC in lieu of the EPDM? Special Finance - 09/07/10 Page 19 David Bryson I could speak with the architect and see if he would recommend that. Alderman Deane Is it black in color or it is white in color right for reflective ... David Bryson Right. Alderman Deane ... purposes for ... David Bryson My understanding is that the PVC, this goes back a couple of months, I will double check, but we could get a price. I think there is an issue with price on PVC. Mayor Lozeau They looked at both of them and recommended this. David Bryson This came with some investigation by the architect. Alderman Deane There is not a ballast going on top of that is there? David Bryson No there isn't. There is currently a stone ballast on this low roof. There is going to be no ballasts on this roof. There will be walkways to protect. Alderman Deane And the drainage is roof drains? David Bryson Roof drains and scuppers. Alderman Deane Are there scuppers already up there? David Bryson No there are no scuppers now. So there is no really emergency drain system perse. Special Finance - 09/07/10 Page 20 Alderman Deane All the terminations up on the parapet wall are going to be mechanical? David Bryson Yes. Alderman Deane It is all mechanical? They are going to take termination bar and screws and screw the joint between the back of the masonry parapet wall or... David Bryson I am going to have to refer to ... Jay Hunnewell It is all detailed in ... Alderman Deane Is it counter-flashed? Is there brick up there in the back - a block? David Bryson There is brick up there. It is counter-flashed. Alderman Deane So they are going to cut a riglet into that horizontal joint, run the rubber up, and then counter-flash down and then caulk that. .. Jay Hunnewell I believe that is the detail right there. It is pretty small. Alderman Deane Did we have a set of those plans in the Aldermanic Office? Jay Hunnewell I believe there are and I think they are also available on the web site. Alderman Deane The web site is nice for some stuff, but pulling that up. All I had was this spec document that I found. I think there was another one out there. I didn't see a set of plans like that. I will take another look. Mayor Lozeau If you would like a copy Alderman Deane we can make sure there is one put in your mailbox. Special Finance - 09/07/10 Page 21 Alderman Deane Then they get folded up. David Bryson We can give you a copy of this. Alderman Deane Yeah, I would just like to look at it. Jay Hunnewell You can have that one if you like. Alderman Deane It is not all marked up is it Jay? Jay Hunnewell Not yet, you can have a good clean one. Alderman Deane And the skylight is not going to be operable? David Bryson No. Mayor Lozeau Alderman Deane are you all set so others could ask questions? Alderman Deane For the time being yes thank you Mayor. Alderman Vitale With some of the things that would come with warrantees such as the membrane on the roof, how do we go about telling city employees about where they can walk and where they can't so the warrantee holds up? Jay Hunnewell • Hopefully there are no other city employees up on the roof other than maintenance and the occasional service contract person that we have up there servicing the unit. My intent was to keep everybody off of the roof and walkways will be installed to those units where people would walk so that they don't damage the roof. I think the flat roofs or the single membrane roofs are more stable than the ballasts roofs so you are not stepping on the rocks, which could potentially poke holes into the membrane. I think the EPDM roof will be a good system for City Hall. Does that answer the question? Special Finance - 09/07/10 Page 22 Alderman Vitale It does because I know from past experience that they are very sensitive. If there is indication that anybody walks on them, the warranty is void. Jay Hunnewell And that was a consideration in the project to do all of the roofs. We don't want to have to go back and repair a roof. All of the roofs are at their end of life anyway so now is the time to do the job and at the same time replace the mechanical equipment, and when it is all done in theory there will be little traffic on those roofs; only for maintenance of the equipment. Alderman Vitale And without going into some of the details for the most part then we have looked it over for all best practices involving each of the different areas; the skylights, the roofing, the MEPs, everything, we are using best practices? Jay Hunnewell Correct. Alderman Vitale And who all has looked over - it is that list of people then looked over each of those components for best practices? Jay Hunnewell Yes. Mayor Lozeau We have had actually a good team. We have had the project team that is identified in the memo and then I have had an in-house team. It has worked out very well so far. Jay Hunnewell We have been putting this together since I started employment here and that was in November of '08 so we have a considerable amount of time invested into this. We truly believe that this is what is best for City Hall. Otherwise we wouldn't be here before you this evening. Alderman Pressly Thank you. This is a city building and it is a huge project, and this might be a silly question, but do our inspectors, are you held accountable to our city hall inspectors as any other project in the city? Mayor Lozeau Yes. Alderman Pressly Okay. Special Finance - 09/07/10 Page 23 Jay Hunnewell Yes. The permit fees are waived. It is all in the bid set. But they will have to pull their permits in Community Development or in the Planning Department just as you would on the outside of City Hall, and the inspectors will come, inspect the work, and sign off on it as they would in any other building within the City of Nashua. Alderman Pressly Alderman Vitale touched upon it with the warranties and the guaranties. That is always a problem you know five years from now. How about maintenance, particularly with the items that you can't see that are inside the walls? Are you comfortable with the guarantees we have with the people doing the work that if something should run amuck that they would cover ordinary workmanship and costs? Jay Hunnewell I am comfortable with it. David Bryson We are very comfortable with it. At this point, we can also say that the general contractor has to choose his sub-contractors and negotiate with them so final choice hasn't been made, but we are very particular about two things; we want to be sure that you get a local contractor to do the work so that if there is any issue the contractor can be here if there is anything in terms of warranty and really out of the contract, because this is not part of it, we are strongly recommending that you have service contracts on all of your equipment moving forward so that they are serviced regularly and you avoid long'-term pain. Mayor Lozeau But maintenance plans and things like that we've got to document them, we have to put them in place, we have to demonstrate that we have followed through on that. Alderman Pressly That is part of the project? Mayor Lozeau That is part of what we have to do yes. David Bryson That is not part of this contract. This is repair and upgrade work. The maintenance is really a separate issue. Mayor Lozeau I didn't mean to imply that it was part of the contract. I meant to imply that is our responsibility and we need to do that. I think that is one of the challenges that Jay much like I when I came along, you thought that there was some process in place for different things and there just wasn't one and there wasn't someone that you could say how come we don't have this. That is one of our priorities for this is to ensure that all of the work that gets done has a system in place. In addition, one of the things that I have been talking about is we also need to be bUdgeting accordingly in our capital dollars so that 20 years from now when the roof needs to be replaced, we have a plan. Special Finance - 09/07/10 Page 24 Alderman Pressly You read all the time about a contractor and the sub-contractor having a big legal battle over who is responsible and then in the meantime the project is in trouble. Do you have safeguards in place to avoid that? David Bryson Yes we do. The general contractor is who the City is dealing with. They are bonded. They are obliged to be responsible for the whole job. Whatever issue or dispute that they have with their subs is not our concern or your concern, it is their concern. They must deal with it. Alderman Pressly Thank you. Mayor Lozeau And the company that we have chosen has been in business for a very very long time, and I am sure by now has experience with sub-contractors that they are going to use for work. David Bryson On that score, we feel it is important to check references both with architects and owners who have worked with a contractor. That is part of my role. I have begun that process. I have gone down that path fairly far and am almost complete with it. All of the references we have had from Welch have been very good in terms of their ability to do a job on time, on budget, with minimal change orders, which is something that we consider important. I touched on this a little earlier in the contractor evaluation, but this is post evaluation when we actually go back and speak to the customers that they have worked with. More importantly or perhaps equally important is that they have a reputation of having excellent site supervision and project manager and excellent paperwork. That is the sort of detail that we were looking for with a general contractor; somebody that pays attention to those details who cares. They are a 150 year old company, they are 6th generation, and they are well experienced. We think that you will be in very good hands with them. Alderman Pressly Maybe their first generation worked on this building many years ago. David Bryson They haven't worked on this building. Alderman Pressly Thank you. Mayor Lozeau On some level, no matter what we do and no matter how many safeguards we make ... Alderman Pressly Things happen. Special Finance - 09/07/10 Page 25 Mayor Lozeau ... things happen. You find things you didn't expect to find. That is evident when we were looking at the roof and doing the work and determining we had a problem with the pockets that we talked about on the roof where the guirters are. That we need to get repaired before snow flies. I didn't expect that, but that is what we found. Alderman Pressly I agree with that. I have refurbished two buildings that are over 100 years old, and most of the surprises are not happy ones and expensive ones so you have to be prepared for that. Mayor Lozeau I think we have brought together a good couple of teams of people working on this and I think everything we could do we have done. I really think they sharpened their pencils. I think they did a great job. This last round has really been productive. Alderman Pressly Thank you. Alderman Deane On item #2 on the sheet that was handed out, can someone explain RTU 1-5 as well as RTU 5? Mayor Lozeau For the rooftop units. David Bryson You are referring to the pending alternates down the bottom? Alderman Deane Yes. David Bryson When we went through our first round of selection and interviews, we asked the engineers and the architect what they would suggest or could recommend that may be a way to reduce the overall cost of the project. These were some of the things that were put out. We went to Welch and King to get pricing from them to see what the deletions would cost. Now RTU 1-5 are the units over the west wing, over the low roof, and RTU-5 is the unit that services this room. I think the others delete skylights, provide ... Alderman Deane I just want to go back before you continue. So we have RTU 1-5 are units that are up on the roof? David Bryson Yes. RTUs are rooftop unit. Special Finance - 09/07/10 Page 26 Jay Hunnewell They are packaged roof top units. Alderman Deane And how many are there in total? David Bryson There are 5 on that roof. Alderman Deane And how old are they? David Bryson They are from the 1980s. Alderman Deane That price there is just evacuating the refrigerant and booming it off the roof? That doesn't include the installation of new... David Bryson This was a price to take them out of the contract, take them out of the bid, to deduct them out of the bid and not replace them just leave them as is. Mayor Lozeau But we are not proposing any of these things. David Bryson We're not proposing that. We did this just as an exercise to see if there were some things that were - how much they would cost, then we had a discussion as to what the impact would be of doing so. You can speak to this Jay, you live with this. Jay Hunnewell We came to the conclusion that it was inconceivable to remove them from the project. One of those rooftop units serves room 208 and a portion of the Planning Department over there that failed on me just last week. would not be in favor of deleting that from the package. Mayor Lozeau I just want to be clear that the bottom of the memo after that double line, we are not proposing that any of these things happen. It was merely a discussion and this was their response to that. Those things aren't coming out. Alderman Deane Okay so the $99,000 for ceiling replacement isn't happening? Special Finance - 09/07/10 Page 27 Jay Hunnewell That is correct. It is not happening. They are going to take down the existing ceilings and then they will put them back up when they are done doing their ductwork. They are going to re-install the ceilings. David Bryson On the original bid documents that was one of the two alternates. We requested that and the roller shades for the skylights to determine what the economic impact would be. Alderman Deane So they are going to take down all of the water stained tile and grid, replace the ductwork, and put it back up? Jay Hunnewell We will replace the water stained tile, but they will put the grid back up. Alderman Deane I notice you have removed insulation too ha? David Bryson We had looked at it. We didn't do it. Mayor Lozeau None of these are happening. Alderman Deane Who is balancing the systems afterwards? Is that the contractor? David Bryson The contractor balances the system. Alderman Deane So they are going to be balanced and certified by whom? David Bryson A commissioning agent. Alderman Deane Okay. Don't they normally bring a commissioned agent in to do the balancing? They bring someone in that is certified to ... David Bryson They bring someone in to certified, commissioning agent right? Special Finance - 09/07/10 Page 28 Mayor Lozeau We want to make sure that person is working on our behalf, which is why they are commissioned. David Bryson They are. It is always a third party. Alderman Deane If they are a commissioned agent and perform any hanky panky Mayor I am sure you will be right on top of them. The roof; how are we doing this? Are we going to go u'p and pull those units off and put the new curbs in, get all of the old roofing off, put the new roofing down, and then boom the units back up? David Bryson Yes. Alderman Deane What sort of a timeline are we looking at before they start on the roof or are their tools already up there? David Bryson No. There has not been any contract signed. Alderman Deane What is the timeline of their start date? Mayor Lozeau The roof will be October. David Bryson The roof itself starts in October. Mayor Lozeau It should complete in October too. We are about 6 days off of what we thought we would be at. David Bryson We have it scheduled right now for the 6th of October. This was the schedule included in the bid. We had also not really thought that we were going to be having this meeting when we did this schedule. We were anticipating that the project would have been approved last week when this was done. Alderman Deane It sounds to me like you are waiting for air conditioning season to end so the folks that work here won't be all ... David Bryson That was actually one of the fortunate things that we determined I think earlier in the season was that it was worthwhile waiting. As you all know it has been an incredibly hot summer and we didn't want to start that too Special Finance - 09/07/10 Page 29 soon. But we are now in a race against time to make sure all of the ductwork is put in and that the rooftop units are ordered as soon as possible so that they are here on time, and to get that roof buttoned up. Alderman Deane I think Mr. Hunnewell referred to this summer as the summer of the frozen evaporator coils and clogged up condensate drinks. Jay Hunnewell I did quite a bit of running around this building to keep it comfortable. Alderman Deane We have enjoyed some of that comfort in this room on evenings sometimes. I take it Mayor that we are using cash for this. Mayor Lozeau No actually Alderman Deane because I took some of the ARRA funds out, as I explained at the beginning of the meeting ... Alderman Deane We took $1.5 million out of all of those trust accounts. Most of that is gone now, been spent? Mayor Lozeau No it hasn't been spent, but. .. Alderman Deane Do you have the cash on hand to cover this before you go into the bond? Mayor Lozeau No. Well actually we may not have to let the bond right away. It depends on what part of the project is next. For instance, the bonds that we sold a month or so ago where I was excited about our 2.67% rate, included money for the parking garages - depending on how that schedule goes. The last thing I will do is look at bonding for this project, but we are likely going to take some of the bond and put it towards this, but I am hopeful to use some of the energy dollars for another project. For instance, if we are going to spend $300,000 on HVAC on Court Street, which would have been bonded out of the $4.5 million, that is a good opportunity to look at using the energy dollars for that if it makes sense. I just don't want to use them and end up spending more than we have to because of the strings that are attached to them, which is what was going to happen here at City Hall. Alderman Deane We can always put the check back in the envelope and mail it back to Obama and tell him thanks, but a little extravagant with the strings attached. Mayor Lozeau But if I can use it in other places where the strings aren't so tight we will use it. Special Finance - 09/07/10 Page 30 Alderman Deane So we don't really have the cash on hand to cover the total cost of this? Mayor Lozeau We have over $600,000 in cash. Alderman Deane So we only have $600,000 left. Mayor Lozeau But we have also spent some of it on this project as well; the engineering, the professional"services, the drawings, everything that needed to be done. Alderman Deane So Mr. Bryson basically the Jordan Institute is the Clerk of the Works and if there are problems with some of the drawings or somebody runs into a steel eye beam that they have to get a piece of ductwork through then the Colby Company is going to do the changes or whatever, but they have gone through this building thoroughly before they drew up ... David Bryson Yes, they have spent a lot of time here. Alderman Deane So hopefully we don't run into, but you are always going to run into some problem. It is just. .. Mayor Lozeau Inevitable especially in a building like this. Alderman Deane So that is who the Adam and Brian are? David Bryson Yes. And Mr. Hunnewell has spent a lot of time reviewing the drawings and in his short tenure here has gotten to know this building quite well. I've spent a fair bit of time in the building. We have reviewed the drawings together and had numerous conversations with Colby Co. engineers about them. We have caught a couple of things and we think while we may not have everything 100 0/0, we think we have become very familiar with the building. We're confident that Colby has done a really good job. They have been very committed. Alderman Deane Will a sub-contractor take ownership of everything that they pull off the roof like all of the old air handlers and stuff? Are they taking ownership ofthat? David Bryson In terms of disposal? They are responsible ... Special Finance - 09/07/10 Page 31 Alderman Deane Well they are responsible obviously by law for the refrigerant disposal, but what about the units themselves? Are they taking ownership of that? David Bryson Yes. Alderman Deane So it is up to them to figure out where to dispose of it? David Bryson Yes. Alderman Deane And I take it the rest of the demolition debris will be brought to our solid waste facility? David Bryson Yes. Alderman Deane And who is going to monitor the contractor? Is that going to be a free dump? Jay Hunnewell The tipping fees are waived, which I believe is typical for city projects of this nature. I will communicate with the superintendent, Mrs. Fauteux to ensure there is no abuse of the landfill by the contractors doing work here. If they are taking it to the landfill, it is coming from here it is not coming from a job they have going on somewhere else in town. Alderman Deane I wouldn't think anybody would show up with a half full truck, but. .. I'm just interested to see if the steam trap replacement is really going to have that much net affect. The other concern I have is the fact that we're not cleaning the oil out of the steam lines that run through the building for fear of the things blowing apart. It is kind of troubling. When you leave all of that residue in there and they start that system up it is just going to free up any of the oils that are embedded on the side of the pipe. It is just too bad they can't find a way to cleanse the system out before they load it up and then contaminate all of those traps. Somebody is going to be down there skimming oil out of those traps forever and a day to get things to work right if in fact there is any residue or rust or whatnot built up in the lines. I would imagine there is a possibility there might be. Jay Hunnewell We have been treating the water to the boiler for years. Fortunately that has been kept up. Water Chemicals, Inc. out of I believe it is Woburn, MA - we have a plan with them where they come in and add chemicals to the boilers for that. The oil that I was referring to earlier is in the pneumatic lines that go to the thermostats on the walls, and that is why those aren't functioning properly. We did investigate the flushing of the steam lines and there are pros and cons to it. Their advice to us was not to do it because you are going to free stuff up and could potentially cause problems by doing that as opposed to leaving it the way that it is. It was something that we considered ... Special Finance - 09/07/10 Page 32 Alderman Deane So let it free up on its own and give us a call when something goes wrong. You are never going to get all of that debris out of there and most of the oil that you have in a system is from when you set all of your piping in place. You do still get residual oil from many different things. It was like the Police Department when I worked with the Mayor's Husband when he was an Alderman and we looked at that, and none of that water was ever treated, ever. And then we had the contractor saying you could put a hammer to the pipe. Well Dave Lozeau called a guy, they came down, and they x-rayed the pipe and there was nothing wrong with it. It was hundreds of thousands of dollars worth of pipe they wanted to replace that had no problems. Sometimes it is good to look into things a little deeper than are done at times. This is just a huge project and I can't wait to drive by and see all of the blue tarps blowing off the roof and rain pouring down and buckets all over the place. October 6th is kind of a late start. It is a late start. If we have an October like we did last year you will be happy, but if we don't. .. Jay Hunnewell Occupant comfort wasn't the only reason why the rooftop units were left as is and the roof was left as is. I.T. has a pretty good sized server room that needs to be tempered. We don't want to affect that. We wait until it gets a little cooler and if we need to we can crack a window while they are doing the roof work and stuff of that nature. There are a lot of logistical challenges with doing this project and also remain functioning serving the city. It is going to be quite a challenge, but we look forward to it. Alderman Deane Are they taking the hood out of the print shop down in the basement? Jay Hunnewell That is not part of this project, but that area will be vented properly. Alderman Deane I thought I read that in the specs. Jay Hunnewell I don't believe the hood that is particular to the printing press is in this scope of work, but the ventilation system in that area will be changed out. Alderman Deane So there is going to be a normal air exchange... Jay Hunnewell That is correct. Alderman Deane ... as prescribed by law and all of the mini-split units on the outside down there, those are all being ... Special Finance - 09/07/10 Page 33 Jay Hunnewell Those will be relocated to the roof with the refrigerant lines going through a chase somewhere in the building to get to the roof, which makes it a little easier to maintain as they are centrally located. You don't see them from outside. They don't get vandalized from anybody that may be wondering around looking for something to do. They are out of sight out of mind. Alderman Deane So all of the electrical and everything is being ... David Bryson Yeah, won't be through the windows. Mayor Lozeau Right. Alderman Vitale Although we are not voting on it, where are we going to be staging the project from? Are we going to be using up any parking? Jay Hunnewell We have yet to define that completely, but whereas it is a large project, we have gotten some assistance from our neighbors in use of their overflow parking lots and stuff like that. We have this north side alleyway that we can use to stage construction vehicles or a crane, stuff of that nature. That is another logistical hurtle that we are going to have to overcome throughout this project, and there are many of them. Mayor Lozeau Certainly not going to be easy. Alderman Vitale Just wondering. Mayor Lozeau Yeah, it's got to be done and it is going to be a challenge, but I think people are doing good work. I appreciate it. Alderman Deane I just wanted to answer; Alderman Vitale was talking about the walkways earlier, normally that is a blue material that is put down and when the rubber is done they will set these pathways with the same type of material down for people to hopefully follow although most people seek the closest point, which is normally a straight line. Mayor Lozeau I don't think Mr. Hunnewell is going to let anybody up on that roof without him. Special Finance - 09/07/10 Page 34 Jay Hunnewell No. Alderman Deane And the entrance onto the roof is that still a hatch? Jay Hunnewell Yes it is. Alderman Deane And that is going to remain just the hatch? Is it going to be increased in size to ... Jay Hunnewell I am not sure if we are increasing the size, but I think it is getting replaced. I think a new one is in the bid. Alderman Deane Yeah a metal, but it is going to be sized so that if you have to get a coil up there or you have to get something we don't have to rent a crane to get it up on the roof? Jay Hunnewell I don't know if we got that specific in the bid documents to accommodate for something like that so the answer to your question is I don't know. I don't know if it will be sized to accommodate replacement parts for any units on the roof. David Bryson I have a comment on that because in fact the ladder going up to the attic is probably a tighter space than going in fact through the existing roof hatch. Mayor Lozeau Exactly. It goes through a closet on the third floor. David Bryson The access is . difficult from inside the building let alone from the attic. Alderman Deane Maybe that should be addressed. David Bryson It would require an awful lot of removal of existing masonry walls to increase that. Jay Hunnewell One of the things that we are conscious of with this project also is maintaining the architectural character of the building, and we have made that clear to the contractors as well that it is not just come in, throw it up, and build Special Finance - 09/07/10 Page 35 a soffit around it. We like the character of the building and we want to maintain that, the look of it; the rotunda, the second floor, the third floor. Mayor Lozeau The ladder that leads to the attic, which then leads to the hatch on the roof, you couldn't safely carry the kind of equipment you are talking about through that. Alderman Deane Is it an OSHA approved ladder or is it a wooden ladder or... Mayor Lozeau It is not an OSHA approved ladder. David Bryson It is a steel ladder. It made for that opening, and it is about I would say it is a good 13-14' up. Jay Hunnewell It is nine anyway. David Bryson Pardon me. Mayor Lozeau But then when you get to the top you can't stand, you have to duck and go through ... Jay Hunnewell The closet is probably a 3' x 3' closet with a ladder in it that you have to climb up to get to the attic and then you walk across a catwalk to get to another ladder that goes up probably another 6' through the hatch to get up onto the roof. Alderman Pressly Thank you. It used to be that public buildings would have flat roofs and then put vibrating machinery up on top of it and wonder why the membrane gave out quickly. I am assuming that you are not putting any mechanical machinery, anything up on the flat roof that would in any way cause ... Jay Hunnewell The mechanical equipment will sit on top of a raised curb, and the structural engineers have taken care to design it in such a way that it can handle the vibration of the equipment that is going to be placed on top of it. Yes that has been considered into the overall project and the roof replacement project. Alderman Pressly What machinery is up there? Special Finance - 09/07/10 Page 36 Jay Hunnewell The rooftop units that will be replaced. There will be a large one above the stage in the auditorium ... Alderman Pressly All of the aid conditioning units and all the ... Mayor Lozeau Yes. Alderman Pressly When I served many years ago that was a big deal. Mayor Lozeau They are locating them in the same place that they have always located them, but they are treating them differently so that they are not sitting on the membrane in a way that creates those hazards that ruin the structural integrity of the membrane. They are building for that. Jay Hunnewell That is correct. Currently there are many units on that roof that are sitting right on top of the roof, and they shouldn't be sitting on top of the roof they should be up on a raised curb and fastened properly to avoid those kinds of situations that you brought up. Mayor Lozeau Are there further questions on this item? Thank you gentlemen I appreciate you spending that much time with us this evening. The motion before you is to recommend final passage. MOTION CARRIED MOTION BY ALDERMAN CLEMONS TO TAKE FROM THE TABLE R-10-52 ON THE QUESTION Mayor Lozeau I asked you to table it until I got information. I have information, I am ready. Alderman Pressly We have another meeting upstairs that started at 7:30 p.m. Is this something that could wait? Mayor Lozeau What I had discussed to provide to everybody was the cell tower information. I was just going to distribute it, and then I was hoping we could take action on it. It goes to Public Works next week. I think everybody has had an opportunity to read it. We have had it for... Alderman Deane Don't we have a Finance Committee meeting next week Mayor? Special Finance - 09/07/10 Page 37 Mayor Lozeau No I don't think we do. I think the only item that is going to be on the agenda is going to be the Warrant. Alderman Deane If we didn't approve this tonight we could discuss it next week right if we had to? Mayor Lozeau We have a full Board of Aldermen meeting that night Alderman Deane. Because of the election the board meeting was moved to the 15th . Alderman Deane I know that. Mayor Lozeau I was really putting in my best effort to not have that happen. Alderman Deane Well let's get it out and go through the whole thing. Mayor Lozeau Let's start and see where we end up. Alderman Pressly I am a member of the committee upstairs that is the only thing. Mayor Lozeau I understand that. MOTION CARRIED Division Taken R-10-52 Endorser: Mayor Donnalee Lozeau Alderman Michael J. Tabacsko APPROVING A FIRST AMENDMENT AND MEMORANDUM OF FIRST AMENDMENT TO THE SITE LEASE AGREEMENT WITH STC FIVE LLC(SUCCESSOR-IN-INTEREST TO SPRINT SPECTRUM, L.P.) FOR THE FOUR HILLS LANDFILL CELL TOWER MOTION BY ALDERMAN CLEMONS TO RECOMMEND FINAL PASSAGE OF R-10-52 CONTINGENT UPON APPROVAL OF THE BOARD OF PUBLIC WORKS ON THE QUESTION Mayor Lozeau R-10-52 there are really just a few changes; the first one is it used to be a Sprint provider and now this company has taken it over so the first change is the name change. The second change was when they wanted to, in their original agreement, increase their term, they originally came to us I think it was in April and Special Finance - 09/07/10 Page 38 they started with 30 years and we negotiated it down to 20 years. There are four 5-year renewal terms. The other one that is significant is negotiating that the inspection of the tower structure took place by an independent third party. Those are the critical pieces here. The document that you have received gives you a synopsis of the current city cell phones and what is missing from what you have that you are going to want to mark, that first set of green boxes that all say Mine Falls Park, that is one tower that is City owned, it is 180' tall. The second green box where it says Holman Stadium in two of those, those are both City owned. I wanted them to say who owned which ones on here, but that just got missed. The David Deane Skateboard Park is the flagpole cell tower, and that is privately owned. The last one is the landfill, which is privately owned. That is what we are dealing with tonight. That is a 180' tower. Alderman Deane We own the Mine Falls Park tower? Mayor Lozeau We own Mine Falls. We own all of them except for the skateboard park and the landfill. There we merely own the land that they are on, which is what this lease is for. Alderman Deane Let's go back to the legislation then. Where are the changes in the legislation? Mayor Lozeau The changes in the legislation are... Alderman Deane Because you have to amend this if you are going to ... amend the legislation by vote right? Mayor Lozeau You mean amend this document that we just handed out? Alderman Deane No you have a piece of legislation with it and a contract attached. Mayor Lozeau I was just pointing out in that piece of legislation what the changes were. There are no new changes ... Alderman Clemons From the old contract. Mayor Lozeau ... from the old contract to the new one. I was just highlighting that there are three particular changes from the current contract. Alderman Deane They are already incorporated in this? Special Finance - 09/07/10 Page 39 Mayor Lozeau They are. The first one is on page 1 the name change is a noticeable change. The second change is #2 in page 2 where they have added four additional five-year renewal terms so that is a 20 year extension in their term. When they first came to us I was saying with this proposal, they wanted an additional 30 years and we negotiated to 20. One of the reasons, it is probably obvious to most of us, that they look for adding to their term on the pole is because they can't enter into contracts with those they are allowing to go on the pole without having a period of time that gives the return on investment for the people that are going on the pole. The other, what I consider significant change, is item #4, which is the inspection of the tower structure by an independent third party. I think that is important. Alderman Deane Who is covering the cost of that? Mayor Lozeau They are. And it is their responsibility if any issues are found to fix them at their expense. Alderman Vitale As the term gets longer and let's say our ability to communicate changes and so the tower is no longer needed, how long do they have to take a tower down if it is no longer in use say if it ever comes to that? As it gets longer and there is always a possibility that the way cell towers are used changes, how long do they have to take ... Mayor Lozeau It probably goes from a big dish to a square and they don't need that ... Alderman Vitale Right. Mayor Lozeau My understanding right now is that in the contract where somebody else, a private owner, owns the tower, it is their responsibility to take it down under agreed to terms. We are not specific in the contract on whether that is 30 days or 60 days. It is similar to this moving forward in the sense that we're not supposed to unreasonably withhold their ability to get an extra term or change owners or that sort of thing. It is that same kind of thing that dictates the okay now you are not using the tower any more, you are taking it down at your expense, this is how it goes. There are some provisions that speak to that, but I don't think they are as specific as we will take it down in 120 days, etc. Alderman Deane I don't think we are unreasonable people. You said we can't be unreasonable with allowing them to operate or deal with their subcontractors. Mayor Lozeau I was just making the parallel between that and them not being able to be unreasonable about when and how they take their tower down. Special Finance - 09/07/10 Page 40 Alderman Deane I thought that had been in language that was part of the original contract that was approved. I believe most of those contracts have a timeline for dismantling if they decided that it was no longer needed to operate their business or like Alderman Vitale alluded to, I don't know if we will ever see it in our lifetimes, but another way to get cellular service - they seem to still be throwing these things up all over the place. Although technology does change rather quickly, I don't think it is going to change that quickly. But I thought there was a dismantling line in those contracts. Maybe I am wrong. Mayor Lozeau . There is something in them, I just am not certain that they have an exact timeline. I think it we negotiate a reasonable timeline based on what needs to happen. I don't think I have with me the original contract ... Alderman Deane This is just an amendment it is not going to have all of that language. What are we bringing in for total revenue for this? Mayor Lozeau That is on the sheet that you are seeing. It goes up by the CPI annually. You will see what the annual revenue has been. Alderman Deane Boy there is enough money in that Mine Falls Park account they could probably buy a lawn mower over there for that facility - almost $100,000 a year. I think these towers worked out well for what we are doing with them. I know with the Holman one and the skate park one that are used to offset maintenance and costs there. We set those trust funds up and the money sits in those accounts. I think it is kind of a bonus. The Mine Falls Park one initially when they wanted to change the use of that money - that serves a good purpose. I bet you that account has probably over $400,000 in it by now. It is utilized for work, renovation, restoration, and whatever they have to do down there. That is an awfully large facility that requires a lot of maintenance. I am all set. Mayor Lozeau Is there further discussion on this item? MOTION CARRIED Mayor Lozeau I appreciate the committee's indulgence on that. DISCUSSION - None ADJOURNMENT MOTION BY ALDERMAN CLEMONS TO ADJOURN MOTION CARRIED The Finance Committee meeting was adjourned at 8:04 p.m. Alderman-at-Large Ben Clemons Committee Clerk  City of Nashua Central Purchasing 229 Main Street Nashua NH 03060 603-589-3330 Fax: 603-589-3344 September 7,2010 Revised Memo #11-042 TO: MAYOR LOZEAU FINANCE COMMITTEE SUBJECT: NET METERING PROJECT CONSTRUCTION PHASE CHANGE ORDER #1 (VALUE: $60,000) ACCOUNT: 792-01310-3743 CONSTRUCTION - NET METERING PROJECT ACCOUNT BALANCE REMAINING AFTER PURCHASE: $43,468 The Net Metering Project is an ARRA funded project that was awarded to Reilly Electric Division of Ostrow Electric Company, Inc., in an amount of $281,370.00. This construction project involves the installation of electrical equipment and power lines to allow for full production of electricity by an existing generator fueled by digester gas at the Wastewater Treatment Facility. The net metering equipment allows for inter- connection with the PSNH grid. The original bid was based on the design performed by consultant Stearns and Wheler. In late 2009 Stearns and Wheler coordinated the design with PSNH but did not receive any specific requirements at that time because of pending State regulations. Based on the new State regulations and resulting new design guidelines on Interconnecting and Distribution, dated March 3, 2010, PSNH completed its review of the project and recently issued comments on the Net Metering Project. The net result is that the following additional items need to be incorporated in the project: Change Order No.1 in the amount of $60,~OO.00 is for the following: Additional Equipment $60,000.00 e Provide utility (conduit and wiring) for a PSNH instrumentation meter (to be provided by PSNH) lID Provide an emergency shut down switch on the exterior of the Energy Recovery building. This includes conduit, wiring, an interior control panel and connection to the net metering equipment fll Provide for "gang" operation of the cut-out fuses on the new power pole such that the three cut out switches can operate simultaneously eJ Provide three 34,500-120V voltage transformers as specified in the attached sheets. The PSNH study of this project based on their recent design guidelines included a circuit analysis originally to be performed by Reilly Electric who will return a small credit to the City. Stearns and Wheler has developed drawings, schematics and specifications to meet the above PSNH requirements and submitted to Reilly Electric who is currently working with their subcontractors to determine the exact costs for this change order. 1  In order to stay as close as possible to the ARRA schedule and because of the lead time for ordering the new equipment we are seeking approval of the change order of $60,000 as an allowance for the purchase and installation of the additional equipment. This is an approximate cost developed by Reilley based on their experience with the purchase and installation of similar equipment. The exact price is still being developed by Reilly's subcontractor and is expected to take another two weeks. Several discussions I between the NHDES, the consultant, Stearns and Wheler and City Engineering staff concluded that Reillyrs estimate of $60,000 is fair and reasonable. The NHDES has suggested that the change order be executed as an allowance which is a common practice of theirs in lieu of having an exact cost figure. I Change Order 1 brings the total contract value to $341,370. Under the ARRA program the change order cost will be covered by the SRF loan and qualifies for 50% being forgiven by the NHDES. The Engineering and Wastewater Departments, Board of Public Works (August 2, 2010 meeting), and this Office respectfully request your agreement to authorize Change Order #1 to the contract with Reilly Electric, Worchester, MA for a net change in the amount of $60,000.00. Approval will result in a new contract value of $341,370. The source of funding is through account 792·01310·3743 Construction Phase - Net Metering Project. Respectfully, .~ f~ f(. , . Robert Gabriel Purchasing Manager Cc: D. Fredette B. Keating S. Dookran C. O'Connor 2 27 Congress Street, Salem, MA 01970 City Hall Building Improvements 229 Main St. Nashua, NH 03060 Change for 20 Aug 10 Bid 26 Aug 10 Bid 02 Sep 10 02Sep 10 Bid Break-Out Description Addendum 04 - Values Values Changes Values (Davis-Bacon) Demolition $18,725 ($5,050) $13,665 $13,665 Structural $53,646 ($3,542) $50,104 ($26,570) $23,534 Roofing $315,154 ($27,833) $287,321 (;~35,285) $252,036 Skylights $45,245 ($3,239) $42,006 ($10,000) $32,006 Insulation $15,790 ($2,834) $12,956 $12,956 MEP's $579,421 ($8,599) $570,822 $570,822 Interior work $68,857 ($7,288) $61,569 $61,569 General Conditions $101,982 $101,982 (.~>3,570) $98,412 Total Base Bid $1,198,820 !$58,39S} $1,140,425 (,$75,,425) $1,065,000 Accept Alternate 6 - Delete Insulation - (01 Sep 09) ($13,000) ($13,000) Total Bid wi Accepted Alternates $1,198,820 $1,127,425 $1,052,000 Pending Alternates: 1. Replace existing ceilings throughout $91,525 $7,965 $99,489 2. Delete RTU 1-5 ($35,532) ($17,842) ($53,375) 3. Delete RTU 6 ($8,766) ($3, (39) ($12,505) 4, Delete skylights ($38,938) $3,253 ($35,685) 5. Provide skylight shade $11,708 $11,708 6, Delete insulation ($16,905) $3,905 (;:;13,000) 7. Delete cleaning of existing ducts (.$13,000) $7,886 ($5)15) 8. Delete the Replacement of the Low Roof ($32,080) Unit Prices: 1 - Removal/Replacement of Roof Insulation - (Per SF) $3.60 $3.60 $3.60 2 - Removal & Replacement of Roof Deck - (Per SF) $33.20 $33.20 $33.20  CELL TOWER DATA SPREADSHEET 452-556-0-6911 452-555-0-6914 452-548-0-6365 Location Mine Falls Mine Falls Mine Falls Mine Falls Mine Falls Holman Holman David Deane Carrier AT&T Omnipoint Sprint MetroPCS US Cellular AT&T Omnipoint Sprint Square Footage 125 225 240 16 125 225 240 2304 Total Square Feet (including pad) 1600 1600 1600 1600 225 225 2000 2304 Pole Height 180 180 180 180 110 1I0 120 175 MOllthly Rental $ 2,422.41 $ 250.00 S 2.351.86 $ 2,200.00 $ 868.72 $ 2.672.41 $ 250.00 $ 2,322.46 $ 3.633.38 Upfront Payment $ Cell Tower $ $ $ 2 Light Poles $ 5,000.00 $ Annual Increase 3% 3% CPJ 3% 3% CPI Cost per Square Foot $ 19.38 $ 1.11 $ 9.80 $ 54.30 $ 21.38 $ 1.11 $ 9.68 $ 1.58 Initial Date 12/22/1998 4/15/1998 5/18/2000 9/15/2004 10/21/1998 4/15/1998 9/29/2000 1/13/1997 Initial Tenn 10 Years 15 Years 5 Years 5 Years 10 Years 15 Years 5 Years 5 Years # of Extensions 3-5 Years each 2-5 Years each 4-5 Years each 5- 5 Years each 3-5 Years each 2-5 Years each 3-5 Years each 3-5 Years each # of Co-Locators 0 0 0 0 I 0 0 2 Private & NPD Mine Falls Park Holman Stadium David Deane Total Monthly Revenue $ 8,092.99 $ 2,922.41 $ 2,322.46 AillIlW{ RCI'cnuc $ 97,115.88 $ 35,068.92 $ 27,869.52 I Total Combined Annual Ceil Tower Revenuel 15> 203,654.881 FYI0 Cell-Tower Lease Revenues Mine Falls $ 102,378.83 Holman Stadium $ 37,496.43 D. Dean Skate Park $ 31,914.27 Landfill Lease 43,207.80 Total Revenue $ 214,997.33 ===~== ,,-;, Ownel' of reI! lOwer ***Monthly Rental divided by Square Footage = Cost per Square Foot 9/7/2010