Finance Committee

REPORT OF THE FINANCE COMMITTEE JULY 3, 2013 A meeting of the Finance Committee was held on Wednesday, July 3, 2013 at 7:00 p.m. in the Aldermanic Chamber. Mayor Donnalee Lozeau, Chair, presided. Members of the Committee present: Alderman-at-Large Lori Wilshire Alderman-at-Large David W. Deane Alderman-at-Large Barbara Pressly Alderman Paul M. Chasse, Jr. Alderman Arthur T. Craffey, Jr. Alderman June M. Caron PUBLIC COMMENT - None COMMUNICATIONS From: Robert Gabriel, Purchasing Manager Re: Main Street Curbing Change Order (Value: $34,768) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE CHANGE ORDER TO THE CONTRACT WITH CLASSIC CURB FOR A NET CHANGE IN THE AMOUNT OF $34,768. FUNDS ARE AVAILABLE IN DEPARTMENT 161, STREET; CAPITAL IMPROVEMENTS – STREET FUND; MAIN STREET PROJECT ON THE QUESTION Alderman Deane Will this do the entire block? Mayor Lozeau It will do the entire Block 3, both sides, east and west. Alderman Deane So each side of the street. Mayor Lozeau Yes, sir. Alderman Pressly I don’t expect you to remember since so many things are said, but I’ve asked repeatedly for a estimate on maintenance of the sidewalks and particularly around the granite parkway. Will this provide the funds for that granite also that forms the parkways that so many of us have asked about? Finance – 07/03/13 Page 2 Alderman Deane You mean the medians. Alderman Pressly Not only the median, but you’re putting these big, I call them mini parks, on the sidewalk and you have a granite curbing around them and you have plantings in them. Mayor Lozeau The plantings bed? Alderman Pressly Planting beds. They have granite around them. Mayor Lozeau Right. They’re granite planting beds. This is not that. This is the curbs along the sidewalk. We’ve done the contracts for the granite planting beds separately at finance. Alderman Pressly Has all of that already been funded for you? Mayor Lozeau No. There’s still more to come. Alderman Pressly Well then just to mention to you, I would expect to have some information as far as maintenance. I’m worried, and many people have expressed to me how difficult it’s going to be to remove snow around the granite beds. So I’d like to get sort of an idea. There’s many other things, and the sidewalks, and the design, that I think are going to require special attention in snow. Although I’ve asked and it’s been the president who said I’d find out eventually so I haven’t addressed it specifically to you before. Mayor Lozeau We have not done costs of winter maintenance, Alderman Pressly, but we are going to have less things on the sidewalks so I would anticipate that our costs would be less, not greater. Alderman Pressly Less things? What have been removed that will be less? Mayor Lozeau There were trees that were in the center of the sidewalks that were difficult to maneuver around so that will be less. The newspaper boxes are eventually all going to be gone and replaced with newspaper condominiums located in specific places. Some of the mailboxes are going to be on the side street instead Finance – 07/03/13 Page 3 of on the main street. We’ll have double trash cans and recycling but they’re located in different locations than the current trash cans. Alderman Pressly I noticed on the block that you’re doing now that there’s also a sidewalk level planting. Is that just going to be in that block or is that going to be up and down the street? Mayor Lozeau There will be more than one of those as well. Alderman Pressly So you haven’t done anything yet to determine what the maintenance of these new items are going to be. Mayor Lozeau We don’t believe that there will be any additional winter maintenance costs. Alderman Deane Is this 2014 money? Mayor Lozeau Yes it is, well actually it may not be. Mr. Griffin? It is 2014. Thank you. It is. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Main Street Sidewalk Electrical Improvements Blocks 2 & 3 (Value: $32,925) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO JOHNSON’S ELECTRICAL SUPPLY IN THE AMOUNT OF $32,925. SOURCE OF FUNDING IS DEPARTMENT 161, STREET; CAPITAL IMPROVEMENTS – STREET FUND; MAIN STREET PROJECT ON THE QUESTION Alderman Deane When we put all these outlets in, how are we going to control the use of it? Mayor Lozeau They’re going to be locked and unavailable to people unless we open them. Alderman Deane So no one can pull up and take a vacuum out of their car and start cleaning? Mayor Lozeau If they’re going to vacuum the sidewalk, maybe we can talk. Finance – 07/03/13 Page 4 Alderman Deane Is there a plan to run extra conduit? We had that conversation before. Are they going to run some extra conduit just in case something happens where they can get into another piece of pipe without having to do any excavation work? Mayor Lozeau I asked that question about the availability of getting into the conduit without having to excavate the sidewalk. They are going to have different, I’ll just call them junction boxes for our discussions, Alderman Deane That’s what they are. Mayor Lozeau In different locations where they will be able to access them without any excavation work necessary. Alderman Deane But say the pipe breaks. Junction boxes. I’m just looking at the cost of pipe compared to the cost of digging. If they were going to put extra pieces of conduit in and just leave a string in it so if something down the road some future use was needed or if there was an electrical problem and the wire shorted out and melted the conduit and they couldn’t get a piece of wire back through the pipe. Mayor Lozeau That certainly could happen. I will ask if they are putting additional conduit pipe. They are working on a master plan for all the electrical work. Alderman Deane Thank you. And this is 2014 money as well, correct? Mayor Lozeau Yes, it is. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract for Humane Society Animal Control Services for FY14 Requested by Community Services Department (Value $99,081) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND RENEW THE CONTRACT WITH HUMANE SOCIETY OF GREATER NASHUA IN THE AMOUNT OF $99,081. FUNDS ARE AVAILABLE IN DEPARTMENT 109, CIVIC & COMMUNITY; GENERAL FUND OPERATING BUDGET; 56, OUTSIDE AGENCIES MOTION CARRIED MOTION BY ALDERMAN CHASSE TO TAKE FROM THE TABLE THE COMMUNICATION REGARDING LANDFILL ENGINEERING SERVICES Finance – 07/03/13 Page 5 MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Landfill Engineering Services Requested by Solid Waste Department (Value: $80,000) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO SANBORN HEAD & ASSOCIATES IN AN AMOUNT NOT-TO-EXCEED $80,000. SOURCE OF FUNDING IS DEPARTMENT 168, SOLID WASTE; SOLID WASTE FUND; 53, PROFESSIONAL & TECHNICAL SERVICES ON THE QUESTION Mayor Lozeau My understanding is at the last finance meeting that I wasn’t able to attend the sole source letter was missing. Mr. Gabriel has provided that in the packet so it’s up for discussion this evening. Alderman Deane Why is there a not-to-exceed? They know what the scope of the work is. Mayor Lozeau Because the scope of the work actually can change depending on the hours. This is time that we’re looking at. We have last years. It was the same amount. I believe the year before was the same amount. I had intended to look today to find out what we spent last year compared to the $80,000. I didn’t have an opportunity to do it. But based on the work that they’re doing if you look here at the list, if they come across a problem, if there’s a problem with the gas collection, they have to put ten hours in instead of five hours in. Things like that. This gives the leeway to be able to do that work. So we wanted to make sure that we weren’t exceeding a dollar amount, but we also wanted to make sure that we had enough money in there to do the work that was required. As you can see in the contract, this includes all the work around all of the closed landfills, all the reporting, all the work around permitting. This is a company that we’ve been working with since we did our gas collection expansion. As you know we anticipate doing more expansion this year. It’s just to be able to give us the ability to do what needs to be done within their estimates but having some room should something come up. Actually this is one of these contracts that prior to my arrival was a contract that actually never used to come to finance. It was just something that they did at the landfill. When I discovered it and saw the cost associated with it, I said this actually should be something going through the finance committee. I think we’ve always been within the striking distance. I know we’ve never exceeded it because it’s a not-to-exceed contract. I’d be happy to get you the information about what the amount has been in the past. Alderman Deane When I look at the task description, I don’t understand what the annual financial assurances update does. When I look at Item 6 which is on page 5, there’s $12,000 built in for general engineering services. So that’s the contingency? Mayor Lozeau I wouldn’t call it a contingency; that’s actual engineering. It depends on the amount of engineering that will be done. It says general engineering services include routine matters of limited scope such as attending meetings with regulators, providing design, operation, air consultation relative to the landfill. Finance – 07/03/13 Page 6 Alderman Deane But out of the $80,000 what is the total value of the required services through the permitting for the closure? If we looked at this $80,000 this is a yearly evaluation that’s done of all the cells and the paperwork that has to be filed with the DES and things like that. What is the total value of that? There’s some numbers that is listed in Item No. 2. Then there’s an annual waste capacity evaluation. Is that for the landfill? Is that a requirement or just something we’re doing? Mayor Lozeau All of these are requirements. Alderman Deane So all of the requirements total $80,000. Mayor Lozeau Right. Alderman Deane So where would the extra money be, or what extra tasks would be involved. Mayor Lozeau It’s not necessarily an extra task. It may be less on something and more on something else. These are just their best estimates based on the work that we anticipate needing this year. Some of it is customary work that we do every year. Others may change depending on the scope. As I said this year we’re looking at an expansion potentially for the gas collection system. That may require more hours there. And less hours somewhere else. Alderman Deane What else is different? What other tasks are being added other than their normal. Mayor Lozeau That’s not an added task, Alderman Deane. It’s just something that may take more or less hours. They typically will look at the gas expansion. Some years we replace heads. Some years we expand the system. Some years we fix something that’s broken. Alderman Deane That’s Item No. 4, though, right? GCCS expansion construction services. Mayor Lozeau Right, but you asked what was new and I was just trying to explain that the gas expansion was not necessarily new. This year it may require more work than it required last year. I was just trying to give you an example Alderman Deane. Finance – 07/03/13 Page 7 Alderman Deane Just too open-ended for me. Alderman Caron I think on page five it kind of breaks down the numbers for the task and how much, but it also includes Roussell Park which is a big landfill which has to be monitored. They don’t have to do anything at New Searles anymore? Mayor Lozeau They have to do the air testing and monitoring the wells that are in which is what they have to do at most of them. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Single Stream Recycling Requested by Solid Waste Department (Value: Revenue Generating) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO CASELLA RECYCLING. FUNDS ARE AVAILABLE IN DEPARTMENT 168, SOLID WASTE; SCRAP METAL RECYCLING – SOLID WASTE ACCOUNT ON THE QUESTION Mayor Lozeau This is actually very exciting. It’s been awhile since we’ve been able to actually collect revenue on our recyclables so this is good news for us. Based on looking at the 2012 numbers on the formula that this bidder has provided, we would have received over $100,000 in revenue which is nice. Some of you may recall a few years back when it was actually costing us a significant amount and there was no market. So this is a big deal; so I’m really pleased to see this. Alderman Deane The public works director used to work for Casella, didn’t she? Mayor Lozeau I believe she did. Alderman Deane Is there any family ownership or any other involvement that she has with Casella Waste? Mayor Lozeau No. Finance – 07/03/13 Page 8 Alderman Deane Nothing? No patents, no nothing? Mayor Lozeau No, not that I’m aware of. Alderman Deane You would certainly think that she would bring that forward, right? Mayor Lozeau I have every confidence that if the director thought that there was a conflict, I would be made aware of it. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Broad Street Parkway Architectural Design Services (Value: $32,000) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO DENNIS MIRES IN AN AMOUNT NOT-TO-EXCEED $32,000. SOURCE OF FUNDING IS DEPARTMENT 160, PUBLIC WORKS ADMINISTRATION/ENGINEERING; CAPITAL PROJECTS FUND; BROAD STREET PARKWAY ON THE QUESTION Mayor Lozeau This is to do the work, Alderman Pressly, for once they take down the last building, the Gate City Fence buildings, this contract is to prepare the documents for the demolition and for the reconstruction of the wall that will be left when it comes down on the building that it abuts up against. This is a requirement of the historic resources department. Alderman Pressly Have we seen this or will we see the work once it’s done? The work has not been done yet, is that correct? Mayor Lozeau Right. This is the architectural design firm to prepare the bid documents and the work related to the reconstruction of the remaining wall. Alderman Pressly Will we be able to see the plan once it’s designed? Mayor Lozeau Sure. It’s really the wall will look the way that I think the end wall looks now. If you look at those buildings, I think you’ll recall, that you can see where they built them onto one another over the years. That wall now although it had been an exterior wall is an interior wall. Finance – 07/03/13 Page 9 Alderman Pressly What is the deadline for this and also what’s the status for the church that is there? Mayor Lozeau The deadline for this work, for taking down the building or for preparing this work? Alderman Pressly For taking it down and what is the status of finding another place for the church? Mayor Lozeau We’ve been working diligently with the church. I know that they have been speaking with different property owners. I think they may be close to having found something. That’s my understanding but I can’t confirm that right now. The deadline for taking down the building, I don’t think we have a hard and fast deadline yet. We’re on track getting this work done and we’ll probably know that in the next couple of months what we might be looking at. We’re certainly waiting for a final design and to bid out the parkway. Then we’ll probably have some of those deadlines a little closer for you. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Broad Street Parkway Archaeological Services Task 13 (Value: $61,959) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO HARTGEN ARCHAEOLOGICAL IN AN AMOUNT-NOT-TO EXCEED $61,959. FUNDS ARE AVAILABLE IN DEPARTMENT 160, PUBLIC WORKS ADMINISTRATION/ENGINEERING; CAPITAL PROJECTS FUND, BROAD STREET PARKWAY ON THE QUESTION Mayor Lozeau This is also a requirement of the historic resources division for us to check and make sure there aren’t any archaeological finds that we should make sure that we save. This project is going to go from the waste house towards Clocktower and at the end of the canal where the dam is in the MIllyard. That’s where their work is going to be. All the phases of the project are in here. Phase 1 will be to study that area first and then the historic resources folks will be responsible for whether they continue to do more work and which phase gets implemented. Alderman Deane What happened to the other two partners that are listed in the bid? I see there’s one with three partners with Hartgen. And there’s another one over here with only Hartgen. Are they somehow related to one another? Mayor Lozeau I have no idea. Finance – 07/03/13 Page 10 Alderman Deane It’s not like a Smith or a Jones type name. It just kind of interesting. One’s from Vermont, and one’s from New York. Mayor Lozeau I don’t know the answer. Alderman Deane Maybe their brothers that argued and went in different directions. Mayor Lozeau They could be sisters. Alderman Deane They could be sisters as well. Alderman Chasse Or a brother and a sister. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: FY13 Street Paving Program Change Order #1 (Value: $289,269) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD OF ALDERMEN APPROVAL, AUTHORIZE CHANGE ORDER #1 TO THE CONTRACT WITH SUNSHINE PAVING FOR A NET CHANGE IN THE AMOUNT OF $289,269. SOURCE OF FUNDING IS DEPARTMENT 161 STREET, CAPITAL IMPROVEMENTS FUND; FY13 PAVING ($226,782); DEPARTMENT 169, WASTEWATER, WASTEWATER FUND, SEWER STRUCTURES ($8,362); SEWER REHAB ($26,170); AND WASTEWATER OPERATING BUDGET ($27,955) ON THE QUESTION Mayor Lozeau This is our annual paving funds. Alderman Pressly I have a related question. During one of the budget meetings, you sort of casually mentioned that you were hoping to take the revenue coming from the return for the Pennichuck purchase and put it into paving. Is that one of these accounts? Mayor Lozeau No. Finance – 07/03/13 Page 11 Alderman Pressly Which paving program did you want to put it into? Mayor Lozeau Oh, I thought you meant was money going into one of these accounts. First of all, Alderman Pressly, I don’t think I was very casual about it. I think I was pretty specific that I was going to bring in legislation to look at the eminent domain recapture funds being put towards paving. Then we would be debating the one that you brought in relative to conservation and the one that I hope to bring in relative to paving. So yes, it would go into the street paving program. We have street paving program under street fund, capital improvement activity, and I would imagine that would be where it would go if that was supported by the Board. Alderman Pressly Have you sort of budgeted with the expectation of having those funds put in? Mayor Lozeau No, I have not. It would be additional funds. Alderman Pressly All the paving that you had planned for is funded and on track to take place? Mayor Lozeau This is our normal, customary amount that we’ve put in for the last few years. I’m just interested in adding to that amount. I’ve identified that as a source that I would support being added to and that debate hasn’t taken place. Alderman Pressly And since you’re on the Pennichuck Board, do you have any estimated idea when that will happen? Mayor Lozeau I don’t. I would imagine it could be any time within the next two months to the next four months. I really don’t know for certain. Alderman Deane Mr. Mendella, he still works for the city, right? Mayor Lozeau He does. Alderman Deane He has a long list. Finance – 07/03/13 Page 12 Mayor Lozeau The plan goes on endlessly. Alderman Deane Depending on the linear footage of work that would be required by this company to handle and whether they were outfitted to do it in an appropriate timeframe, you could spend tens of millions of dollars every year for paving. They have the list. I was talking to a fellow that lived on a street for 30 years and it’s never been paved, never been paved. He’s still waiting. The one thing about this indexing that I like, when I first got on the Board, street paving was about as political as it got. They were paving streets. That’s what it was all about. Then they put this indexing in, and I think it works great. These are the streets that need it. These are the streets with severe amount of deterioration. You don’t hear people arguing about it. Whatever they bring in and whatever approve to pave, it’s what the engineers have stated are the streets that are in the worse condition which is the way we should be doing it to begin with. There’s not enough money for paving, Alderman Pressly. Mayor Lozeau In addition, Alderman Deane, I’ve talked about what I’d like to really try to work on over the next few months is developing a paving plan for the city so we could have some idea of how can we get everything up to a certain level and then what would it cost to maintain it. We’re always chasing behind. You’re right. There are streets 30 years old that haven’t had it. There are streets that I think we could look at to do instead of a full pave even a shim coat. We tried that on Panther Drive a few years ago. It’s held up beautifully. It was a street that we had intended to pave and then we waiting during the Y project to see about some of the changes that were going to happen there. In the meantime, we shim coated that and it’s held up really well. It was more affordable than a full pave. It has prevented us from having to reclaim that street. There are things like that that I think we could look at that might make sense. With 765 lane miles, it’s like we could almost never stop paving if we had the resources. Alderman Pressly Is it fair to say the need is endless? There’s no amount of money that we can project that would satisfy the need? Mayor Lozeau I wouldn’t say that. I would say the need will be ongoing, but I believe that we could know what the number is and what that would mean. That’s part of what I would like to do. If what you’re trying to put on the table is this is a drop in the bucket so why take that money, I think that’s probably a fair argument that you’re going to have an opportunity to make at a later date. Alderman Pressly Just to clarify, I’ve had legislation for months into the water company to make sure that that money from Pennichuck is somehow put into a land conservation of some sort. It could even go into the river fund and still be appropriate. But that was hard earned money, and I’m sure the Parcel F folks will be watching pretty closely where that money is going. Thank you. Alderman Chasse Is there going to be a list coming out on the streets? Finance – 07/03/13 Page 13 Mayor Lozeau The list is on the back. It was a big packet this week. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Franklin Street Improvements (Value: $74,330) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO DBU CONSTRUCTION IN THE AMOUNT OF $74,330. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; STORM WATER ABATEMENT ON THE QUESTION Alderman Deane Who is the owner of 43? Mayor Lozeau That’s Grace Fellowship Church. We’ve been working with them over the past few years because of all the damage that they’ve had. It’s a bit of a usual situation there because some of the city sidewalk is actually part of their property. They’ve had basement flooding and things like that. We really did a comprehensive look at what was going on there. We actually dug it up last year and we discovered that our pipes are broken. Our catch basin that’s over there has been structurally compromised. Their roof leader pipes aren’t connected properly. They’re willing to work with us and contribute to the cost. That 74 should go down based on what they’re willing to do. We think it will be somewhere close to $30,000 that they might contribute to the project. Alderman Deane How does a transfer take place. We have a bid on the project. The negotiations are going to be done with Grace Fellowship. Whoever negotiates of the city is going to come up with a number. If we’re using money out of this wastewater account to pay for this storm water abatement fund, how does the money get replenished back into that fund when it’s received from Grace Fellowship? Mayor Lozeau We’ll complete the negotiations before the payment is completed to the company that receives this bid. It would be our intention that Grace would pay them directly their share of the cost. We won’t spend out of that account. Alderman Deane Did Grace Fellowship review this contract? Mayor Lozeau They have participated in it, yes. Alderman Deane Is there any mention of that in here? I didn’t see any. Finance – 07/03/13 Page 14 Mayor Lozeau They’ve just been participating with us all along. We’ve been working with them. Alderman Deane It’s just a strange situation. Mayor Lozeau It is a usual situation but I think it’s much cleaner for us to have a contract, an agreed to cost sharing and then we pay our portion and they pay their portion. Alderman Deane If we award the contract is there an approval part of the contract for Grace Fellowship to sign off on? Mayor Lozeau No. Alderman Deane So if Grace Fellowship does not pay their portion to the contractor who is responsible for paying the contractor? Mayor Lozeau We’ll be paying it. This contract is designed that the city would pay to have the work done. In good faith, we’ve been moving forward knowing that Grace is willing to contribute to the project. Either way we have to fix this. Alderman Deane I understand that. But if they renege on it, we’re paying for it anyways. Mayor Lozeau We are. I just don’t believe that will happen. Alderman Deane But we don’t have that in writing, right? Mayor Lozeau Actually we do have e-mails that have gone back and forth discussing it and talking about their willing to commit funds but we have not negotiated the final price. I am confident that the pastor that we’ve been dealing with will come through the way that he has expected to. We certainly can stop at a certain place and tell them they can worry about the rest, but I think we’ve been working in good faith and I hate to use the word “faith” when I’m talking about church but I guess maybe not, but I think we’re going to be okay. This is the worst case scenario for us. Finance – 07/03/13 Page 15 Alderman Deane But part of their drainage issues are part of the problem. Mayor Lozeau Right. Well we’re certainly not going to fix their roof leaders. They have a responsibility to connect into the city piping. Alderman Deane But those are connected into the storm water. Mayor Lozeau I agree. What we would normally do with somebody is they would be responsible for making that connection. They would have to hire their own people and do it. Instead of them having to do that, they’re going to be able to work within the contract that we’ve already agreed to. It’s in their best interest to do that as well. As I said, they’ve been working with us. Alderman Deane I’d like to know. Mayor Lozeau When it’s done, what their price is. Alderman Deane Ya, how everything worked out. Mayor Lozeau I’d be happy to do that, not a problem. Alderman Pressly I notice that you plan to repair the sidewalk. That area seems particularly difficult because of the railroad tracks. If you look down the track area, there’s a lot of brick. How do they plan to feather in the sidewalks on Main Street into the railroad track area? Mayor Lozeau This part of the sidewalk, Alderman Pressly, where this problem is is down Franklin Street. It’s not on Main Street. Alderman Pressly But that church is. Mayor Lozeau I know but we’re not doing any work on the front. We’re doing work down Franklin Street. Finance – 07/03/13 Page 16 Alderman Pressly Nothing is being done in the front of the church or down the railroad tracks? Mayor Lozeau No. We had stopped at the railroad tracks on the sidewalk project. We’ve not yet done that other corner. I think eventually we will but not right now. Right now we’re working southerly. One of the reasons is because the railroad would like to do some work on that crossing. It would make sense for us to try to do that at the same time. Alderman Pressly It’s a rather unsightly area. So it’s something you would consider doing after the whole Main Street is done? Go back and do that section? Mayor Lozeau It’s something that we will consider as soon as the railroad gives us the timeline of the work they want to have done on the crossing. I don’t’ want to do that sidewalk work and then have them come in and do the rail. Alderman Pressly But the other side of the track is up to that? Mayor Lozeau It is. Alderman Pressly So the work will stop right there. There will be nothing done on the tracks or in front of the church. Mayor Lozeau Correct. Alderman Pressly And what you’re doing is on the side of the church. Mayor Lozeau That’s correct. Alderman Craffey I know exactly what you’re talking about on the side there. I’ve walked down there numerous times. I, too, share Alderman Deane’s concern so can I get a copy? Finance – 07/03/13 Page 17 Mayor Lozeau Sure. I’ll send it to the whole finance committee. I think best case scenario is 30, and we’ll see where we go. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Miscellaneous Sewerage Improvements Change Order #2 (Value: $409,917) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE, AND AUTHORIZE CHANGE ORDER #2 TO THE CONTRACT WITH ALBANESE D&S FOR A NET CHANGE IN THE AMOUNT OF $409,917. SOURCE OF FUNDING IS DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; SEWER REHAB AND SEWER STRUCTURES ON THE QUESTION Alderman Deane This equates to what I figure $607.28 a foot. Mayor Lozeau I’m not surprised. Expensive work getting into the sewers. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Digester Gas Shut Off Valve Requested by Nashua Wastewater Treatment Facility (Value: $12,000) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE PURCHASE FROM GH PHILBRICK & SONS IN THE AMOUNT OF $12,000. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; WASTEWATER FUND, 81, BUILDINGS AND IMPROVEMENTS ON THE QUESTION Alderman Deane Are they putting this in? Mayor Lozeau They are. The $12,000 includes installation. Alderman Deane I’ve worked with these people. They are very good. Mayor Lozeau Good to know. Finance – 07/03/13 Page 18 MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Ejection Pod Replacement Parts Requested by Nashua Wastewater Treatment Facility (Value: $11,034) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE, AND AUTHORIZE THE PURCHASE FROM DAVID SULLIVAN & ASSOCIATES IN THE AMOUNT OF $11,034. SOURCE OF FUNDING IS DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; 81, BUILDINGS AND IMPROVEMENTS ON THE QUESTION Alderman Deane It just seems like the treatment plant in particular is just stuck with so many, I don’t know if you want to call them products of abnormality but it seems like nobody else makes them. Once you put them in and everything is fit to them, you’re stuck with replacing it with in-kind replacement from the same manufacturer. Mayor Lozeau The ones that we have in this instance have lasted 25 years. They’ve been in there since 1988. Hopefully we’ll get 25 years out of the new ones too. On this one, Alderman Deane, we’re doing the labor. Alderman Deane Mayor, you know as well as I do nothing lasts like it used to any longer. Maybe that’s not true with wastewater parts but with everything else. Mayor Lozeau Well it could be. That shut off value that we just did only last five years and that’s expected. That’s its life expectancy. The life expectancy on these I think is closer to 20 years. Will we get 25 out of it, I’m not sure. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Dewatering and Grit System Upgrade Project Construction Phase Change Order #1 (Value: $26,868) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE , AND AUTHORIZE CHANGE ORDER #1 TO THE CONTRACT WITH T-BUCK CONSTRUCTION FOR A NET CHANGE IN THE AMOUNT OF $26,868. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; SLUDGE DEWATERING CONSTRUCTION ON THE QUESTION Alderman Deane Who did the engineering on this project? Mayor Lozeau The engineering on this? Finance – 07/03/13 Page 19 Alderman Deane When you read the additional task: also included is the lowering of the motor rails to avoid conflict with the existing roof drains and the replacement of the building scrubber pump number two which is antiquated equipment that would not properly integrate for the new control system for the new pump number one. Did somebody go in there and look at all of this? Mayor Lozeau Certainly. There are 11 items that you’re going to see on this some of which the value engineering we were able to deduct. Some we had to add. When you look through them all we ended up with an additional cost on a $4.4 million original contract of almost $27,000. The staff and the city engineers have told us that they are quite pleased with how this project has been going. Even though they’ve had a few things that have failed during the process that they had to replace that they had hoped would wait, it’s been going relatively well. I don’t have who did the engineering on this in front of me, but I think it’s going well. Yes, there are some things that have changed but you would expect that once you get in there and start taking presses out that have been in there more than 20 years. Alderman Deane But there were as-built drawings of the plant. Mayor Lozeau I believe there were. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Aeration and Secondary Clarifier Upgrades Construction Phase Change Order #3 (Value: $19,195) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE , AND AUTHORIZE CHANGE ORDER #3 TO THE CONTRACT WITH PENTA CORPORATION FOR A NET CHANGE IN THE AMOUNT OF $19,195. SOURCE OF FUNDING IS DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; AERATION AND SECONDARY CLARIFIER UPGRADES CONSTRUCTION ON THE QUESTION Mayor Lozeau Again a wastewater project. This is the big one with the aeration tanks where we have to empty them, recoat them. They’ve done the first tank. When they did that they found that the metal supports were worn and needed to be replaced and the squeegees that are at the bottom need a replacement. When they found that with the first tank, they knew that that’s what they were going to find in the second and third tank. While those tanks are still operational, they’re getting ahead of it and ordering those same items for those two tanks. MOTION CARRIED Finance – 07/03/13 Page 20 From: Robert Gabriel, Purchasing Manager Re: Contract Award for CSO 005 and 006 Screening and Disinfection Facility - Construction Phase Requested by Department of Public Works (Value: $11,733,801) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO METHUEN CONSTRUCTION IN THE AMOUNT OF $11,733,801. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; SCREENING AND DISINFECTION FACILITY – CONSTRUCTION ON THE QUESTION Mayor Lozeau This is the biggie. This is the one that we’ve been talking about, the screening and disinfection facility. It’s the last big part that we have to do for the treatment center and the wet weather facility, all in. This is the one that we’ve looked at different locations. We’ve been able to size it differently. This is going to go on Bancroft Street. It’s going to be underground instead of above ground. We’re very pleased with how the costs have come in compared to where we thought they might be. We were anticipating in 2008 that it was going to be about a $27 million cost. When we added the slue skate and we did the Harbor Ave separation it really helped us to bring the cost down. It’s about a two-year construction for this. This first item is the awarding of the construction contract. The next item on the agenda is the company that designed it and them being able to do the oversight of their design. That’s what this is here. Alderman Deane This is a lot of money. Mayor Lozeau It is. Alderman Deane The 20 percent from the New Hampshire DES State Aid Grant, how is that factored in? Mayor Lozeau We’re looking at the state revolving loan fund. Is that what you’re referring to? Alderman Deane State aid grant, yup. Mayor Lozeau There’s two separate things there. One is we’re eligible for the state revolving loan fund. The second one is we are eligible for the SAG grant, the legislature had suspended those this past legislative term. They have reauthorized those. We can apply but we don’t know if we’ll get it so that 20 percent has not been considered in this cost. It will be should we get it. Alderman Deane Is it 20 percent in total of both? Finance – 07/03/13 Page 21 Mayor Lozeau Of the construction and the oversight, yes. That’s my understanding. Might even consider the design that’s already been done which was, I want to just, just over $1 million for the design. It would be the three components together. That’s about a $15 million project when you put all three components in. Alderman Deane How long is it going to take to build this? Mayor Lozeau Two years with the anticipated construction. Alderman Deane How much contingency is built into this? Mayor Lozeau I don’t know the answer to that. I want to say it’s probably, 13 percent is what we’ve done on things of this size. I’m looking but I don’t see it. Alderman Deane That would be like $1.5 million. Mayor Lozeau That would be my guess. That’s pretty typical I think as long as we’re under 15 percent. Alderman Deane Any change orders would be done out in the field and approved. This is a not-to-exceed amount. Mayor Lozeau Yes. Alderman Wilshire I’m drawing a blank as to where Bancroft Street is. Mayor Lozeau That’s because you have never driven on it, I would bet, at least not as a street. It’s that little road that comes off of Bridge Street and goes near the David Deane Skateboard Park. Alderman Pressly That is part of the Renaissance Program. I think they are going to put a roadway over it, are they not? Finance – 07/03/13 Page 22 Mayor Lozeau Exactly. They are. Alderman Pressly They have apparently successfully incorporated this underground project in with their design work. It’s seems from what I’ve seen to be pretty nice. Mayor Lozeau When we started we were actually pretty much right in the middle of their project. Then we moved it to another location where it was going to be above ground but maybe in the basement of a building. I think everybody worked really well and collaboratively and creatively on this. I love the idea of it being underground. Alderman Pressly I agree. All the changes that have been made are aesthetically much more appealing. Mayor Lozeau Considering what’s going to be in this, that’s very appealing. Alderman Deane I don’t have problems with the project, I have problems with the contingency and the change orders and that process. That’s what I have a big problem with. Alderman Pressly May I ask the Alderman to elaborate a bit more. Alderman Deane You’re carrying $1.5 million for an unknown that is in this price. Mayor Lozeau That’s my estimate. I don’t know off the top of my head. Alderman Deane, I don’t know if you had a chance to read what was attached and whether you caught whether or not that was in there. I’d be happy to also let the committee know what that final contingency percentage and number is. I was just estimating based on prior contracts of this nature. Alderman Pressly Maybe if there’s anything left over it could go into paving. Mayor Lozeau That’s not how this works. This enterprise fund; it funds itself. Finance – 07/03/13 Page 23 Alderman Pressly Paving seems related. Mayor Lozeau Sometimes paving is related. The time will come for that debate, Alderman Pressly. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for CSO 005 and 006 Screening and Disinfection Facility Construction Phase Oversite Services (Value: $1,113,253) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO HAZEN & SAWYER IN AN AMOUNT NOT- TO-EXCEED $1,113,253. SOURCE OF FUNDING IS DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; SCREENING AND DISINFECTION FACILITY – ENGINEERING SERVICES ON THE QUESTION Mayor Lozeau This is as I described earlier for the oversight of the construction that we just adopted. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Contract Award for Stormwater MS4 Permit Evaluation (Value: $20,000) MOTION BY ALDERMAN CHASSE TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO AMEC ENVIRONMENT & INFRASTRUCTURE IN AN AMOUNT NOT-TO-EXCEED $20,000. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; STORMWATER ABATEMENT ON THE QUESTION Alderman Deane Why can’t they give you a set price? Mayor Lozeau Because it’s a very unknown process right now. In essence what has happened is some years back EPA came out with a draft permit that the communities complained and raised concerns about. It was a very expensive regulation attached to that permit. They came back with a new draft. This latest draft has gotten communities worked up again. As a matter of fact, there’s a joint effort of communities that have hired an attorney to fight this draft permit. The approach that we’d like to take is we’d like to strengthen our argument by reviewing the S4 permit with somebody who is qualified to do this to go through with it and be able to estimate for us what we think their cost might be and what we think the components are that we can make a good argument on in order for that permit to be changed again. The rough estimate that we got from EPA of the costs that they think, the additional costs for us for this, was $1.2 million. That was a little bit open ended. Right now we spend about $500,000 a year for this. They were adding triple the amount Finance – 07/03/13 Page 24 onto the cost we already have. When this company comes in and does the work for us, they’re not exactly sure what they are going to find or what we’re going to need as they find things. For instance one of the things we believe is the way they came up with the outfall data, when water goes into say the Merrimack River and they test it looking for certain things that are in it, we think the numbers that they are using to measure that outfall is old data that they shouldn’t be using anymore. But we’re not certain so this company is going to help us find that so we can make those arguments. It’s just kind of open-ended and we have a short timeframe. We have to get our comments back to DES by August 15th so we want to be able to do that and then we expect response back to c moment. We thought this was the right path for us to take. Alderman Deane Where is the scope of work? There was a sentence at the end of the memo that was given to the Board of Public Works. It says: “The scope of work is being developed.” Mayor Lozeau It’s Exhibit B at the end of the contract. They’re talking about the key assumptions, the deliverables, the tasks. The first one is the storm water program permit review and kickoff meeting. Task 2 is the comment letter to EPA. Then they go through assumptions about what we’ll do after the written comments. Task 3 is the compliance assistance. Then they have their contract timeline as Exhibit C. Alderman Deane Their first task is to write a letter. “Prepare a draft comment letter to the US EPA on behalf of the City of Nashua. AMEC will provide a draft comment letter with no more than two rounds of revisions following the city staff’s comments. A meeting will be held following the first draft of the comment letter and at least five days prior to the August 15 deadline to address any final staff comments. AMEC understands that the Mayor will be signing the letter and prior to the kickoff meeting, city staff will inform AMEC on the schedule to accommodate the review and signature.” Mayor Lozeau In other words, the comments are coming from the City of Nashua to the EPA, not from this company to the EPA. They are going to work with the city to discuss our current storm water program, potential obligations under the new permit as it’s been draft, a cursory review sign the information provided by us. Alderman Deane What are they, like a technical writing firm or something? Mayor Lozeau No, no. We don’t need somebody to write for us. We need somebody to be able to determine what the problems are going to be. The language in the draft permit may potentially impact the city’s overall storm water management program and what those are. They’ll review those permits. They will look at the assumptions made by EPA in their document and then they will follow through on what the comments are from the staff. This is our best strategy to try to work with EPA in a way that will help us to overcome and have changes made to this MS4 permit that we think will be in the city’s best interest and the envioronent’s best interest. Alderman Deane Who’s fighting the MS4 permit? Finance – 07/03/13 Page 25 Mayor Lozeau All of the communities that I’m aware in the State of New Hampshire. Different ones are taking a different approach. Some are sitting back and letting the bigger communities fight it. Some have hired an attorney as I said and they are working on their strategy on how to get it. We’re looking at hanging our hat on technical information, proving where we think there are weaknesses in the assumptions that they made in their draft permit. Then we’ll respond accordingly. This the approach that we’re recommending we take. Alderman Deane So this is to the EPA. Mayor Lozeau Correct. Alderman Deane And the smaller communities are sitting back and watching what happens, those that are adversely affected by this? Mayor Lozeau Yes. Some smaller communities are counting on the bigger ones. But there are some small communities that have joined with larger communities. Manchester is one of the ones leading the charge with an attorney. Our share of that would have been probably greater than this $20,000 if we took that approach. We’re just trying to take a different approach. Alderman Deane Litigation is costly as we all know. Mayor Lozeau We just think there’s an opportunity to put some of this on the table and get ahead of it. That’s what this is. MOTION CARRIED UNFINISHED BUSINESS - None NEW BUSINESS – None DISCUSSION Alderman Deane I saw a welcoming sight on Main Street on my way over here. It’s the first time I’ve seen Franny out all summer walking. If you don’t know who Franny is, I’ll talk to you after the meeting. He’s a downtown icon. He was hit by a car up on Amherst Street but he’s back. It was good to see him. The other thing Mayor, I didn’t want you to be taken by surprise during your activities hopefully tomorrow night unless, of course, it rains. The dugouts at Murray Field have been painted. I think you’re going to like the color. They’re the same color as the new trash trucks. Finance – 07/03/13 Page 26 Mayor Lozeau Mountain Dew green. Alderman Deane Oh, they are more than that. I couldn’t believe it when the guy started rolling it. I’m like: I hope that was a mistint that somebody gave you. Oh no. I looked at it and said I bet the Mayor will like that. It’s the same color green. We’ve been working diligently on that facility. Another thing, Mayor. I don’t know who made the call to close the pools when we had those tornadoes warnings, not watches, but that was a good move whoever made that. That was very smart on somebody’s part to get those people and tell them they had to leave. They had to seek shelter. The drainage on Courtland Street could not handle that monsoon that came through. A couple of the people I talked to I explained to them that we would have to put 40-inch lines in all the streets to handle that sort of water at that time. We had a lot of water in a short period of time. Mayor Lozeau We did. Alderman Deane Mayor, I got you a shirt. I wanted to show you this. I hope I got the right size. I tried. This is what the back of our jerseys say: One city, one goal. This is Nashua All-Stars, 12-year-old boys. I wanted to give you this shirt. I don’t know if you’re going to wear it. Mayor Lozeau Maybe I’ll wear it tomorrow for the festivities. Thank you. It’s very nice of you. Alderman Deane The boys participated in a tournament up in Swansey and they Merced everybody they played. In fact we Merced Keene, not once but twice which is a sweet thing. It’s a very good group of kids that are playing, coaches. We spent a lot of time on that field up there getting it ready for the state tournament. When we host in Nashua, we like to show the other communities, and the park department has been a tremendous amount of help. Alderman Caron Park-Rec. Alderman Deane Park-Rec, I’m sorry. The Park-Rec Department has been a tremendous amount of help to us. They always are when we have tournaments. They go above and beyond for us. We like to showcase our facilities to other communities. When the kids come and play they see the facilities that we have and they envy what the City of Nashua has for their kids to play on. And that’s all the facilities that we have. Thank you. Mayor Lozeau You’re welcome. It’s nice to have our kids feel good about their home turf. Finance – 07/03/13 Page 27 Alderman Deane And it’s nice playing at home too. Alderman Pressly I was told something that I thought was sort of interesting that we may have three nights of fireworks at Holman. Three nights in a row. Tonight is Silver Knights. Tomorrow is the Fourth of July, and the next night is Friday at Silver Knights. So it’s going to be a lot of activity taking place after dark at Holman Stadium the next three nights in a row. Mayor Lozeau If the weather holds up. Alderman Chasse Here comes the phone calls. Alderman Pressly That was a bit of a warning. Alderman Chasse Fireworks after 10 o’clock? Mayor Lozeau No, actually this year’s permit for the Silver Knights they have to be done by 10 o’clock. Alderman Pressly It’s just an interesting schedule. Mayor Lozeau We agree the Silver Knights could do that this year. I think it’s the right thing to do for people. Seeing we’re talking about the Fourth of July, just so everybody knows we are prepared, when Mr. Caggiano makes that decision tomorrow about what’s going to happen, we will put it up on the website as soon as we know. I know we’ve had trouble in the past about people that have waited until the last minute and then thought they’re not going to do it and have left and then were upset. They couldn’t figure how to find out. The website certainly doesn’t take care of everybody. I just wanted the aldermen to be aware so if you check it you’ll be able to tell them. Alderman Chasse Worried about the weather? Mayor Lozeau It’s been raining. It’s been a challenged. Finance – 07/03/13 Page 28 Alderman Chasse Ask the young lady over there to talk to Mother Nature. We’ll be all set. Mayor Lozeau It was raining the morning of my son’s outdoor wedding. The sun came out the minute they walked down to start the ceremony so I’m a very happy girl. I’m not going to complain about the weather in spite of other things Alderman Chasse No negative vibes. Mayor Lozeau No negative vibes, all positive. Alderman Caron And hopefully Mr. Caggianno has his little clicker for tomorrow’s fireworks as they go off so I get a count. Alderman Deane Did you leave it in your desk in the top drawer? Alderman Caron I probably left two of them in the desk. I want to congratulate the kids. I’ve been reading about the All- Stars, and I went Oh my God, they’re’ going to do really well. I’m really hopeful that they will have a good time this weekend and the weather will hold. I went by Murray Field but I didn’t notice the dugouts. Maybe they weren’t bright enough. Alderman Deane It started around six. It’s going on right now. RECORD OF EXPENDITURES MOTION BY ALDERMAN CHASSE THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES FOR THE PERIOD JUNE 14, 2013 TO JUNE 28, 2013 ON THE QUESTION Alderman Craffey Under general funding, an item for $158,873.92 to TSA Consulting. Mayor Lozeau Off the top of my head, I don’t know but I’ll let you know. Finance – 07/03/13 Page 29 Alderman Deane The warrant used to have a breakdown on the credit card use, or the record of expenditures. Mayor Lozeau We created one for the warrant. I thought the record of expenditures. Alderman Deane It says Citizens Bank. That’s all it says. Is it possible to have a breakdown of the credit card use and who the vendors are? Mayor Lozeau I’ll check on that. Alderman Deane Thank you. Alderman Pressly I just want to say Happy Fourth of July to everybody. MOTION CARRIED PUBLIC COMMENT POSSIBLE NON-PUBLIC SESSION ADJOURNMENT MOTION BY ALDERMAN CRAFFEY TO ADJOURN MOTION CARRIED The Finance Committee meeting was adjourned at 8:08 p.m. Alderman Paul M. Chasse, Jr. Committee Clerk