Finance Committee

REPORT OF THE FINANCE COMMITTEE APRIL 2, 2014 A meeting of the Finance Committee was held on Wednesday, April 2, 2014, at 7:28 p.m. in the Aldermanic Chamber. Mayor Donnalee Lozeau, Chair, presided. Members of the Committee present: Alderman-at-Large Daniel T. Moriarty, Vice Chair Alderman-at-Large David W. Deane Alderman Ken Siegel Alderman Paul M. Chasse, Jr. Alderwoman Pamela T. Brown Members not in Attendance: Alderman-at-Large Jim Donchess PUBLIC COMMENT - None COMMUNICATIONS From: Robert Gabriel, Purchasing Manager Re: Continued Services for Property Valuation Change Order #1 Requested by the Assessing Department (Value: $20,000); MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AUTHORIZE CHANGE ORDER #1 TO THE CONTRACT WITH HTE NORTHEAST FOR A NET CHANGE IN AN AMOUNT NOT-TO- EXCEED $20,000. FUNDS ARE AVAILABLE IN DEPARTMENT BS 1000 OVERLAY; GENERAL FUND ON THE QUESTION Mayor Lozeau This is the Assessing Department and the Legal Department requesting that we have our own expert looking at a problem in this Webster Square location off of Daniel Webster Highway. Alderman Deane Do we stand to lose more than the cost? Mayor Lozeau Yes we do. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Electric Utility Vehicles Requested by Park Recreation Department (Value: $33,716) MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AUTHORIZE THE PURCHASE FROM ABBOTS POWER EQUIPMENT IN THE AMOUNT OF $33,716. SOURCE OF FUNDING IS THE CAPITAL EQUIPMENT RESERVE FUND; 81, CAPITAL OUTLAY Finance – 04/02/14 Page 2 ON THE QUESTION Mayor Lozeau I’ll just point out that the CERF document has a tractor in there; Tractor 541 that the CERF Committee agreed would not be purchased. Instead Mr. Caggiano brought in kind of a packet of items that he wanted to purchase instead with those funds that were estimated to be used for that tractor. They included a chipper; they included these pieces of equipment and some standup mowers. Just so you know when you look on CERF, we talk about it in the memo being approved by the CERF Committee. It replaced that tractor. I’ve asked Treasurer Fredette to indicate on the CERF schedule that that indeed took place so we can keep track of it. Alderman Deane Is the tractor ever going to be purchased? Mayor Lozeau He doesn’t expect to purchase it in the next five to ten years. Alderman Deane The one issue is the volts on this. Mayor Lozeau It should be 120 on the memo. It says 110. Alderman Deane Somebody alerted you to that; I received a few phone calls from people in the community about that. Mayor Lozeau I just didn’t think there was a 110 volt. It’s 120, 240, and 480. Alderman Deane There was a point in time where 110 volts was appropriate but that’s not anymore. My concern was are we going to have to get a special charging system or is there a special charge to bring the standard 120 voltage down. Mayor Lozeau No. Alderman Deane I’ve spoken with a number of people. When you look at the hours on these existing pieces of equipment, like anything else it’s pretty much housed in a facility. Most of those hours are beat hours. It’s not regular. There’s more wear and tear in those hours than you would think. It’s going to be interesting to see how we make out with these pieces of equipment as compared to the gasoline powered vehicles that we have purchased in the past. Finance – 04/02/14 Page 3 Mayor Lozeau I’m looking for the bright side. They are having good luck with them. Keene State is using them; MIT is using them, UNH. There’s a few places that the staff talked to people about using them. This will cost us two cents a mile. It’s hard to argue it. Alderman Deane You look at a small pickup truck too. These are designed to be driven on turf. The weight is evenly distributed the way the tires are built. It reduces compaction and you’re not killing everything by driving over the turf areas. Alderman Moriarty I’m going to vote no against this primarily because it doesn’t make good financial sense to buy this. I’ll just mention why. The substantive part of it I’ll go to in a second but as far as I know the idea of electric golf carts is a thing of the 80s because golf courses around the country realized that they were such a pain in the neck. They are always dead. The people that use them, the convenience of the dead electric golf cart that you have to recharge is expensive compared to the utility of a gas cart. I suppose if you’re MIT and you have 20 of these things then you always have one that’s on the charger. If we have one, the thing is going to be dead. It’s going to be sitting there and we’re just going to burn man hours waiting for it to charge. Also the idea that being a green alternative is a fallacy. They may not burn gasoline but you have to burn fossil fuels to generate the electricity to charge the battery to propel it. You burn it, you convert it to electricity and then you transmission down the power lines and then you run a charger which is lossy in every stage and that thing is lossy so you end up with a net loss. If you want to be green, you want to burn the gasoline at the location where the power is needed. Now if we have nuclear power plants that’s different because you’d have a large power plant that could generate the electricity and volt green and then you’re not burning fossil fuel anyway. So those are the two reasons. It’s actually not green and it’s actually going to be a pain in the neck and we’ll probably have a lot of down time and a lot of wasted costs. Alderman Siegel I was at the BPW meeting and listened to Superintendent Caggiano discuss these. They seem like a good idea to me. I’d also like to point out, thank you, Madam Chair, for providing the CERF Committee meeting minutes where this was discussed and that substitution that you talked about as indicated in the December of 2013 minutes which are online now. I just wanted to point that out if anyone is interested in the discussion that centered that. Alderwoman Brown I plan on voting for this because it’s a savings to the city. Thank you. Alderman Deane The charging mechanisms that I see when I look at gasoline powered carts in today’s industry they aren’t purchased. All the carts are battery. The gasoline powered carts are normally only the rental ones they send out if some place is having something and they need “x” amount of carts. Then at night they go in under the chargers. I would imagine at the end of the day these things are just plugged in and left there. They get their mileage during the day out of them. I think it would be interesting to try this to see how it works. I don’t think they are going to have the charging problems with them. I just don’t. Finance – 04/02/14 Page 4 Mayor Lozeau The document that’s in with your packet talks about 45 miles on a single charge which is great particularly because they are going to be at the location. They are at Greeley Park and Holman Stadium. Nick Caggiano made it clear to me that he doesn’t consider this a golf cart because what it is capable of doing that a golf cart can’t do. I think he sold some of us on it. Out of the 8 units, to have 3 like this for a test run I think makes a lot of sense particularly where we have a lot of people in the general area. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Purchase of Concrete for Main Street Project 2014 Construction Season Requested by Street Department (Value: $35,000) MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO GRANITE STATE CONCRETE IN AN AMOUNT NOT-TO-EXCEED $35,000. FUNDS ARE AVAILABLE IN DEPARTMENT 161, STREETS; CAPITAL IMPROVEMENTS STREET FUND, MAIN STREET PROJECT ON THE QUESTION Alderman Deane This is the design? Mayor Lozeau Yes. Alderman Deane One of them says draft on it; the other one doesn’t say anything. Is one the draft and the other the final? West Pearl to Eldridge, are they both in draft form or is the West Pearl to Eldridge a draft? Mayor Lozeau Block 3 is no longer a draft in front of the area from Factory Street to High Street. The next block is still a draft. That’s the block that has Martha’s Exchange which they’ve come in and talked to you at a couple of meetings about potentially having to make some adjustments there. That would be why. Alderman Deane The crosswalk is going to be almost the same as the one on the bridge? Mayor Lozeau It is except it’s about ten feet shorter. The one on the bridge is just about 30 feet long. The one at the next two mid-block crossings is about 20 feet long. Alderman Deane I take it the little dots are trees? Finance – 04/02/14 Page 5 Mayor Lozeau Yes. Alderman Deane That are in the concrete? Mayor Lozeau Planters. Alderman Deane The planters are the highlighted and the little dots in the highlighted areas are the trees? Mayor Lozeau The new trees, yes. Alderman Deane In that entire block we’re looking at ten trees? Mayor Lozeau If you’re counting the dots I’m going to trust that you’re correct. It’s easier to see this map online. All of these maps are online. Alderman Chasse Was Granite State the only one that bid on this? Mayor Lozeau We had two companies the last cycle. We kind of had the main company and then the backup company. We didn’t have a lot of good luck with the second company. So much like the electrical work and the company we’re buying the poles from, we’re going to stick with this same company that we liked the results from. That’s why we’re sticking with them. Alderman Moriarty These do look better online. I took the time to look at them. Is there a schedule for the project and a budget for the project? Mayor Lozeau The schedule for the project is always the same. As soon as we can get out in April, we get out. The schedule is all weather dependent. The other mitigating factor is what we may find when we get in there. The budget is online, has been for the whole project for over a year now. Alderman Moriarty By schedule, I mean like what they call a “gantt chart” where you have Finance – 04/02/14 Page 6 Mayor Lozeau I know what I gantt chart is. Alderman Moriarty Like first you’re going to tear up the street and it’s going to take two weeks. Then you’re going to lay out this and it’s going to take two weeks. Then you’re going to do this and it’s going to take one week. Then you’re going to do this and it’s going to take three weeks and then it’s going to be done. And the cost of pulling up the street is this street. The cost of buying the granite is this much. The cost we’re going to estimate we are going to have this many cubic yards of cement. We need this much to budget. Not as opposed to we have allocated $40 million. What’s the listing, the budget and the schedule? Mayor Lozeau The budget breakout is online. The schedule is not. It has not been done in that manner because we have determined that we find things underground that change the schedule. If we have to rebuild a storm drain it’s going to delay what’s happening on the sidewalks. If we find conduit as we did on the other side with a vault of a business going out onto the sidewalk and seven inches of space to do work in, that’s going to change the schedule. So, it’s not broken down like that. In April we begin. The first thing that happens is we dig up to lay all the curb. That’s the first thing that happens. We have a contractor that comes in and lays the curb. All the sidewalks are torn up, trees are removed, that sort of thing. When they get in there they see what needs to be done and then they follow up. They place the forms after the excavation, they bring in the concrete. They lay the concrete depending on the weather. They come in and they do the mason work. Some of the businesses in the front we have to coordinate with them for their thresholds with the sidewalk. Some of the businesses in the front when we get in there we find that they have grates that are underground that were covered that have to be uncovered. It’s really very dependent on some of the businesses and what we find. It’s not as simple as we’re going to come into this room, take up the carpet in the first week and then the second week; it’s just not like that. Alderman Moriarty I’m not suggesting that it’s simple, but there must be a plan. I’m sure some sort of a plan, an approach and sequence of events and a list of items that you’re going to do. There’s nothing wrong with the concept of discovering things along the way and having to modify a schedule. It would seem prudent to have a schedule just like with the Broad Street Parkway. I would hope that there’s a schedule more than just we’re going to sort of start building a road and we’ll see when it ends. It seems like we’re taking that kind of approach. We’re just going to sort of stop. We’re going to start and then we’re just going to sort of make it up as we go and then we’ll be done when we’re done. Mayor Lozeau I don’t think it’s quite that silly. Alderman Moriarty Then if it’s not, is there a list? Mayor Lozeau Items in the order in which they happen? Finance – 04/02/14 Page 7 Alderman Moriarty Yes. Mayor Lozeau Yes. Alderman Moriarty And where is that? Mayor Lozeau I believe the engineer has that. I’ve not asked him to post that. Alderman Moriarty For the Main Street project? Mayor Lozeau Of course. Things have to go in order. Electrical happens first, the conduit gets run. They are managing the project with items that have to be done. We’re just not putting it in a sense of it will take one week for this or two weeks for this. Alderman Moriarty So there’s no estimates on how long you think it’s going to take for any of this to occur. Mayor Lozeau We estimate before we start the project and we work with the business. For instance, we’ve met with businesses along a certain block. We’ll go in and talk to them about when we’re going to be there. A business may say can you push it back a week or move it ahead a week. We may do that. There may be work that has to be done at that point that changes. For instance, 100 Main Street. That added three weeks to the project easily. Then we re-adjust and continue down with some excavation so they try to keep working as they go through it and modify what needs to be done. Martha’s Exchange is a great example. They are going to want us to skip the block that’s next up and come and do their block. That’s probably going to be a problem. If the Board of Aldermen approves an easement from Martha’s to be able to build that deck that they’ve been talking about, we’re going to need them to get their foundations in the ground for those pedestals. All of those things are going to have to take place and be coordinated. I’m not going to have staff sit down and lay out a schedule knowing that we don’t know what that schedule will be today. I’m not going to hold up the project while we figure that out. We’re going to start working in the same order that we have been working which we have been successful with. Alderman Moriarty I believe there should be a schedule that’s listed in detail. I believe there should be estimates on hours for each one. I believe there should be a timeline of all these events, and I believe there should be cost estimates on it. I’m trying to as the finance committee look at is this concrete request within the budget, but I don’t know what the budget is for concrete. I don’t know how it compares, whether that’s too high or too low. Because we have no way of knowing as we proceed whether we’re ahead or behind schedule or above or below budget. I don’t know. Finance – 04/02/14 Page 8 Mayor Lozeau Concrete is a very simple one to do. They are maintaining the same price that we’ve had for the project to date. We’re on budget for the concrete. We know how many pads we have to lay. What changes with that is how thick is the concrete or do we need a special addictive to the concrete because we need it to cure faster or slower. Do we have to make changes based on what I was describing in front of 100 Main Street on how thick that slab can be? We are within budget on that and the concrete budget is posted in part of the budget that’s up there. Alderman Moriarty I’m not asking for you to explain how the budget would be created or the schedule would be created if you’re going to create it. I’m simply requesting can I have a printout of the schedule and the printout of the budget so as these purchases come through I can compare them to that? Mayor Lozeau I’d be happy to print the budget off from online for you, but I do not have a schedule from week to week what’s going to happen there. We do weekly updates on it to all the merchants and we post it every week. The start of our week we say this is what we plan to do this week. At the end of the week, we say we accomplished this or we didn’t. It rained for four days; we did not do any work downtown. Alderman Moriarty I appreciate that approach. I don’t advise that as the approach. Mayor Lozeau I understand that. Alderman Moriarty For instance, the counter example is the Broad Street Parkway. Infrastructure for two years Mr. Vancor would come in and he would have it laid out. This is what we spent, here’s what we’re going to spend, here’s the timeline. It was like I can accept that. I think this should be planned out a little more thoroughly. Mayor Lozeau Thank you, I understand that. Alderwoman Brown I understand when I was first even for running for office; I was shocked that there was no project plan. Now that I’ve learned more about this process and all the problems that were encountered with the sidewalk project, I get it. I’m used to project plans with software development. They are more predictable, not completely predictable, but much more predictable than sidewalks, like as you mentioned the rain or any problems. Apparently we’ve encountered a lot of problems. I’m okay with that. It looks like it’s been working for the city so I plan on voting for this. Alderman Deane Figuring our yardage of concrete is relatively easy to do. It’s real simple to do. There’s a lot of things that affect concrete. There are products that will enhance its workable dry time to get on. There’s also a product which is relatively cheap that will delay the set process to be able to get on it. It’s just simply water. Finance – 04/02/14 Page 9 When you add water to it, you’ve changed the slump. You’ve now taken the portland and you’ve reduced the quality of the portland and you’ve lessened the strength of the concrete. I don’t think they are doing slump tests on this, and I don’t think they are vibrating any of the concrete. When I look at the memo here that was supplied to us, the other vendor had inferior quality product resulting in different finish pad colors and a rougher finish on the concrete pad surface, I’d like to better understand that. I think some of the discoloration was from the leaves that had fallen. I saw people out there pressure washing them. Number two, you can change the consistency and strength and the configuration of concrete real easy with water or not enough water or pouring it when it’s too cold or pouring it when it’s too hot or pouring it in pouring rain. The finish is all driven by who gets on it and what they are doing to it. Was this vendor ever brought down here and shown the finish product of the concrete they supplied? Did they understand that we were having trouble with their product? Mayor Lozeau I believe that the engineering department did speak to that vendor. There are two pads that they’re particularly concerned about. Alderman Deane Where are they, on the Main Street Bridge? Mayor Lozeau No. They are in front of 92 to 96 Main Street, just up above Enterprise Bank and next to where the new Mexican Restaurant is opening. They don’t think it’s going to present a problem, and they are going to look at how it wears. It’s primarily aesthetic in how it looks is really the biggest concern right now. They don’t think they are going to have any problems with it, but they think comparing it with the product that we have used, they stopped using that vendor based on that and stayed with this vendor they are recommending tonight. Alderman Moriarty and Alderman Deane, I clearly understand and I think I said it; it’s not hard to figure out the concrete budget. We’ve done that. Alderman Deane I’m not debating that. I want to take a look at that. That’s kind of concerning. If the concrete isn’t vibrated or there’s too much water added to it or if it sets too quick and whoever was to get on it couldn’t get on it at the appropriate time and they lost it, you’re going to have a lousy finish. Once concrete starts to set, believe me, I’ve done it before. I’ve poured four garage floors at the same time. I had no problem with the first two. The third one I struggled with, the fourth one I walked across. I never even got on the thing. When you don’t bring the lath up to the top of the concrete then the strength isn’t at the surface. I’ve noticed a lot of cracking too. Have you noticed that? Mayor Lozeau No. Alderman Deane Go down by Darrell’s Music and take a look at that. I don’t know if those expansion joints are being cut all the way down deep enough. I did notice some saw curves had been cut but that’s another issue. Alderwoman Brown This is like déjà vu. Even on the bottom of this memo it says that the superintendent of streets, the board of public works and this office recommend awarding the contract in this amount. I believe they are the Finance – 04/02/14 Page 10 experts. At least for myself, I will trust that decision. I am not the expert; they are the experts and they have been doing this for years and years and years. Again for us to walk in and say I don’t think it’s appropriate or the concrete is blah, blah, blah, I think that’s just wrong because it’s hurting the city. It’s hurting the city with this down time and not getting the project done. This project was budgeted, it was approved. Was it two years ago? Mayor Lozeau A few years now that we’ve been working on it. Alderwoman Brown For some of us to just step in and say no, I just disagree or no, I don’t like the way. There should be a project plan that I can look at. I just think that’s not appropriate. I’m going to vote for this. Alderman Deane It’s not appropriate to condemn somebody for asking any question. That’s against our code of conduct. What I’m reading here is what was provided to us. I just asked some questions about the concrete and the integrity issues that we had. I agree with cost that was generated. As the Mayor stated, they figured out the yardage and what they needed for that block. This is not causing any delays because the way the process works is they will get dig safe to go down which has been happening because I can see the lines in the street. Then they will go down and saw cut the asphalt out. They will get the curbing out and the curb company will come in. That’s the first thing they do is lay all that curb. Then they will put the asphalt back up to the edge of the curb. Then the work from the sidewalk side of the curb to the building begins. We haven’t held up anything by asking about the issues that we have with concrete from the prior vendor. I just had an interest in understanding what the problem was. Alderwoman Brown I would like to apologize. I certainly did not intend; I was not condemning you. I was not condemning the fact that you asked a question. I’m just condemning the issue that a couple weeks ago we had the memo from legal that said that this is what our authority is and this is the authority of BPW. My understanding is that the Board of Aldermen, we have not hired a separate attorney to decide whether that was an appropriate decision or not. Here it is the Department of Public of Works is requesting this, it was budgeted, it was approved and for us to say I think it’s just inappropriate. Mayor Lozeau I’m hopeful this is going to pass tonight. I don’t think we’ve said no yet. Alderman Siegel I was at the BPW meeting. I don’t have any problem with the concrete. I don’t’ have any problem with questions being asked. I don’t think that this is even remotely comparable because I actually do believe this was likely to pass. There’s no particular reason why there’s anything wrong with the way this was spec'd or the reason why it was spec’d as sole source. I do understand Alderman Deane’s question and I think it is entirely legitimate because there’s a number of reasons why concrete could fail. That said, Alderwoman Brown, I just wish that we didn’t try to drag the trucks back into this because I really don’t think they are a comparable issue. I think after the vote is taken we will see that they are not a comparable issue. Finance – 04/02/14 Page 11 Alderman Moriarty There was a resolution that was submitted last term which the alderman from ward four may not be aware of which was specifically to require that the Chairman of the Board of Public Works, being the Mayor, provide the Board of Aldermen timely schedule expenditures on the Main Street project. That resolution was eventually tabled in a good faith measure by the people in the Budget Review Committee and by the Board of Aldermen not grabbing at it because at one point there was no information coming at all about this project. Then we started getting information once every six months. I think there were two handouts, two pieces of paper that came out as a result of that resolution. That resolution was tabled in an attempt to give the Chairman of the Board of Public Works and the Mayor an opportunity to start providing information. There was plenty of notice to plan ahead for this. Obviously we all have a difference of opinion. I believe that we should have something of this substance, a legitimate schedule of significant detail even if we do change it and a budget put together. That was essentially promised to us two years ago when we tabled that resolution. That does not exist right now. Regardless of the opinion of the legal department which is just an opinion. My opinion is different than their opinion. Still my reasoning for voting against this is consistent with the legal department’s opinion because it’s purely based on saying that do the expenditures based on this project fit within the budget of the project. Since I don’t have a budget to compare it against I have no way of saying does it fit. To say that the finance committee’s only jurisdiction or only role or only authority is simply to find out whether this dollar value is available in an account number is to say we’re nothing more than the purchasing manager. Bob Gabriel can do that. Why do we need to even meet? Bob Gabriel can make that. Why even have a Finance Committee? If the legal department’s opinion is true that the only authority the finance authority is is essentially to do the job of the purchasing manager, that’s sort of a silly conclusion because that’s saying that the finance committee has no purpose. My interpretation is the finance committee does have a purpose. It’s to try to stay focused on the finances. I don’t have a budget for this particular project. I keep hearing that it was budgeted and approved by the board of aldermen, but the only line item I ever remember being approved was the $250,000 line item from two years ago. I may be mistaken, but I would like to see the budget for the two blocks even if it’s an estimate. I would like to see the schedule. Then I ask a finance committee member can look at this dollar value and as we proceed see if we think we’re in line with the finances which is a role that is a larger scope than the purchasing manger. Mayor Lozeau Alderman Moriarty, I would strongly disagree with your assessment on whether or not I provided information or not. That budget has been provided for a very long time, by the block, in summary, it’s been provided to the Board of Alderman every thirty days while the project is active. It has been for more than two years now. That legislation about reporting information out, I believe, was tabled because the information was being provided. The sticking point was over whether or not straight time labor should be included in the budget. I have provided that information and continue to do that so other than a schedule that says this is going to happen this week and that is going to happen the week after, we give you a schedule, we put the maps up. I spoke to you in January of this year where you asked me if I could provide the maps and the drawings for all of downtown even if they weren’t final drawings. By January 6th, those were all up on the website. I told you they would be. Chairman Moriarty I give you credit for that and I appreciate that. Mayor Lozeau The tree plan is up, the block plans are, what we plan to do next is there and every budget cycle that we’ve had since the initial budget has been approved in the Budget Committee. The sidewalk plan was presented to the Capital Improvements Committee, they voted in favor of that project, the Board of Public Works voted in favor of it. Finance – 04/02/14 Page 12 Chairman Moriarty Excuse me, I am on the Capital Improvements Committee and this year they did not vote for that. Mayor Lozeau You don’t vote for it every year. It’s an existing project. I came in, I presented it, they voted for it, the project was created, and it was begun. It doesn’t come back year after year. Now see it in uncompleted projects, you see it in the budget as it comes in. We budget about $500,000 each year for this project - on- going. The budget is slated to be under $3 million. There have been multiple meetings. It was presented. There was an engineering estimate presented to the Board of Alderman back in 2010 I believe as part of the Downtown Improvement Plan that VHB did so I don’t see it the same way you do. There’s actually a history of a project from the 70’s and the project going forward here. There were more than 45 conversations about it. I don’t see it the same way you see it. I would agree that’s there’s not a Monday through Friday plan, but there is certainly a season plan and our plan this season is that we are going to stay on the west side of Main Street and try to complete block 3, block 4, and get us up to City Hall. That’s the plan for this season. We stayed off of the east side of Main Street because of the church taking down it’s building which again, has been discussed publicly. The conduit on that side presents another challenge. I think we can make more progress staying on this side of Main Street. That’s the plan, the Finance Committee along with the Board of Public Works and others see it in increments as we move forward. We’ve approved the curbing, we’ve approved the electrical, now it’s the concrete, and that will happen every season until downtown is done. Frankly, I am really quite pleased with the work that our staff has done on this considering that we are building with no “as built” drawings from the work that was done in the 70’s. In Concord, they went out to bid twice now. Their first bid for this work came in at over $12 million. The second bit came in at $1.7 million more than their first bid. I think we are on track to do this right and when we are done it’s going to be paid for. It’ll be done and our staff will feel pretty remarkable about what they have accomplished. I understand that we don’t see eye to eye but I think the project is being managed quite well and I can understand if you don’t want to support it but the budget is up, it has been up, we are on budget, and we are on track to complete the project. Chairman Moriarty May I have a copy of that budget? Mayor Lozeau I will go on-line if you want. When we are done with the meeting, I will go into my office and pull it up and print it. Chairman Moriarty You are essentially saying that it’s either go get it yourself or yes. Mayor Lozeau We update it every 30 days on-line. If you want it in a paper form I’m happy to provide it. I didn’t realize that. I provide it to you, not a problem. Chairman Moriarty I misunderstood that the resolution was to have the information provided to the Board of Alderman as opposed to the information will be provided so that the Board of Alderman can go get it themselves by searching on-line and trying to find it. Finance – 04/02/14 Page 13 Mayor Lozeau You know that there’s a link on the homepage for the project that brings you right to the budget. Chairman Moriarty I went there and I saw the drawing. Mayor Lozeau The first thing that opens is the budget. Chairman Moriarty I went there and I looked and I saw the drawings and they were nice, I appreciate you putting them there. I am simply asking can I have… Mayor Lozeau Do you want a paper copy of the budget Alderman Moriarty? I am happy to provide it. Chairman Moriarty Please. Mayor Lozeau If there are any more aldermen who want a paper copy then just let me know. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Manchester Street Bridge Construction Phase Change Order #2 (Value: $9,860) MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AUTHORIZE CHANGE ORDER #2 TO THE CONTRACT WITH RS AUDLEY FOR A NET CHANGE IN THE AMOUNT OF $9,860. SOURCE OF FUNDING IS DEPARTMENT 160, PUBLIC WORKS ENGINEERING, CAPITAL PROJECTS FUND; MANCHESTER STREET BRIDGE ON THE QUESTION Mayor Lozeau You’ll note on both on your agenda and your memo that the motion read was different than what’s on your paper copy. It should be department 160, Administration and Engineering from the Capital Projects Fund, activity to the Manchester Street Bridge. Alderman Deane What was the original budgeted total for that project? Finance – 04/02/14 Page 14 Mayor Lozeau For the Manchester Street Bridge, I want to say it was $1.9 million. That’s the project where it is 80% state, 15% city, and 5% Merrimack. Alderman Deane Okay, so we have an original total of $1,972,435.80 and my question is what was carried for contingency for this project because that puts us over the originally approved total. Now it’s up to $1,989,000. Mayor Lozeau Correct, that’s why we are here, to ask for the additional money. Alderman Deane Where’s the money coming from? If it was budgeted originally at $1.9 million where are we going to get the additional money? Looking at the department, it’s showing it coming out of wastewater fund/ wastewater activity description sewer rehab and sewer structures. Mayor Lozeau That’s incorrect. We corrected that motion. It’s coming out of department 160 – Public Works, Administration and Engineering out of the Capital Projects Fund. Alderman Deane Okay, so the dollar amount in the Capital Projects Fund for the project that was… Mayor Lozeau It’s going to go up by this amount. Alderman Deane Where is the money going to come to cover the cost of the increase in the contract going up if it was budgeted for the $1.97 million to begin with? Mayor Lozeau It’s either coming from a contingency which I don’t know off the top of my head or its coming from engineering. I think they have taken money from some of their Capital Projects and are transferring it into the Manchester Street Bridge Project for $9,860.00. The state has approved their share and Merrimack has approved their share. Alderman Deane Have the transfers occurred, Mr. Griffin. Mr. Griffin Not yet. Finance – 04/02/14 Page 15 Mayor Lozeau We can let you know, Alderman Deane. Alderman Deane So there’s money being taken out of other projects. Mayor Lozeau I don’t know that for certain, I’m just telling you that that’s really the only option. There’s either a contingency or its coming from an unexpended line or another project. That’s really the only options. I do believe they carried a contingency. Alderman Deane I looked at the information that was provided to us and I couldn’t find – there’s some reductions in here, there’s a decrease. Mayor Lozeau In tree removal and things like that, right? Alderman Deane Yes, and there was also, I thought there was a decrease in concrete too. Mayor Lozeau They could very well be making it up right in the project costs. I’m not aware of the funds being transferred so I’m more comfortable assuming that it’s within the project. Alderman Deane Additional review of the quantities found this item to be estimated too high. This contract will be credited $9,600. That’s the #3 in the change order description. Then there was an increase in excavation costs. There’s no date on this. Mayor Lozeau Date on what? Alderman Deane This one where it says change order – it’s got a description/a reason for change orders but I don’t see a date on it. Alderman Siegel It says effective date upon city approval. Finance – 04/02/14 Page 16 Mayor Lozeau I think what you are looking for is when did change order #1 happen, is that what you are asking? Alderman Deane Yes. Mayor Lozeau Change order #1 was a $7,000 increase. Alderman Deane $7,566.50. Mayor Lozeau Right. Alderman Deane This one here is $9,800. Mayor Lozeau I don’t have the first change order information with me but we will get you the information on where the funds are coming from. Alderman Deane When you look at the front page of the change order – yes, I’d like to know that. Mayor Lozeau I’ll check. Alderman Chasse The worst part about this bill right here, the $9,800? It’s going to cost us less than $1,500 because we get the 15%. Mayor Lozeau No, I think this is our share. This amount is our 15%. Alderman Chasse The total bill is $9,860 and we get 15% of it, it’s less than $1,500. Mayor Lozeau Yes, that is correct. Finance – 04/02/14 Page 17 Alderman Chasse So we are talking $1,500 here? Mayor Lozeau That’s correct. Alderman Deane Can you explain that again? Alderman Chasse Because its $9,800 and we get 15%. 80% is coming from the state, 5% is coming from Merrimack, and the other 15% is ours so 15% is less than $1,500 for this change order for the City of Nashua. Am I right? Mayor Lozeau I believe you are. However, we are municipally managing this contract so we would show all of the dollar amounts. Like this $1.9 million is not all of ours. Alderman Deane I think if we are going to have these projects like this, then a breakdown should be done of where the funding is coming from. Right now, it’s just saying that it’s coming out of the capital projects and I guess you’d have to take it for granted, well, as long as we know that the state if paying for 80% of this… Mayor Lozeau The state is paying 80%. You don’t have to be led to believe that, that is a fact. We have a contract with them, they pay 80%, Merrimack pays 5%, and we pay 15%. I wish I were to catch that obvious point right in the beginning. Thank you Alderman Chasse. We are showing it all, the memo talks about it but I think Alderman Deane, what might be helpful if there are further change orders, is we should break it down to say that $9,860 is the total cost and then break down what our share is from that cost. That would be helpful. Alderman Deane When we look at a decrease in these items and we go back to a number similar in nature of the $9,600 credit, we benefit from that as well. Mayor Lozeau Yes, we benefit from that as well. Alderman Deane We had a $1,500 cost avoidance there. It’s just a little confusing to me. Mayor Lozeau I should have seen the obvious. Finance – 04/02/14 Page 18 Alderman Deane I wouldn’t expect you to see it. Mayor Lozeau I’m glad Alderman Chasse was here and saw it. Chairman Moriarty This is less than $10,000 but are you bringing this to us because you are just being nice or is did we trip a law that we were talking about last time? Mayor Lozeau I don’t know if it’s nice or not nice to bring it to you. The first change order was for $7,000, the second change order was $9,000 so it knocks it over the $10,000 mark which is why it’s here. Chairman Moriarty All I see is $9,860 in big bold numbers. Mayor Lozeau If you look here it says change order #1 in the amount of $7,567. Our policy has been that it doesn’t matter how many change orders you have, once you hit that $10,000 threshold, everything comes. MOTION CARRIED From: Robert Gabriel, Purchasing Manager Re: Aeration and Secondary Clarifier Upgrades Construction Phase Change Order #5 (Value: $16,627) MOTION BY ALDERMAN SIEGELTO ACCEPT, PLACE ON FILE AND AUTHORIZE CHANGE ORDER #5 TO THE CONTRACT WITH PENTA CORPORATION FOR A NET CHANGE IN THE AMOUNT OF $16,627. FUNDS ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER; WASTEWATER FUND; AERATION AND SECONDARY CLARIFIER UPGRADES ON THE QUESTION As you know, we have visited this item a few times in finance. The project is on-going. They found a faulty valve and this is to replace that. MOTION CARRIED UNFINISHED BUSINESS – None NEW BUSINESS - None HELD IN COMMITTEE O-14-011 Endorsers: Alderman-at-Large Jim Donchess Alderman-at-Large David W. Deane Finance – 04/02/14 Page 19 Alderman Ken Siegel Alderman David Schoneman Alderman Michael Soucy REGARDING FINANCE COMMITTEE APPROVAL OF CONTRACT AMENDMENTS  Held in Cmte – 3/19/14 DISCUSSION - None RECORD OF EXPENDITURES MOTION BY ALDERMAN SIEGEL THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURES FOR THE PERIOD MARCH 14, 2014 TO MARCH 28, 2014 MOTION CARRIED PUBLIC COMMENT – None POSSIBLE NON-PUBLIC SESSION ADJOURNMENT MOTION BY ALDERMAN CHASSE TO ADJOURN MOTION CARRIED The Finance Committee meeting was adjourned at 8:21 p.m. Alderman Ken Siegel Committee Clerk