Search

Finance Committee Page 7
March 2, 2016

Alderman Siegel

| understand in the long-term you can look at the balance sheet and say well Nashua is really good and we
have an 11% reserve and that’s great but year-to-year we have to do this path so year-to-year we have to
make a budget to account for this. As those numbers fluctuate beyond our control, something has to give.
That’s a big concern and that’s what makes it so much fun to sit here.

Mr. Mcintire

| understand.

Mayor Donchess

If our portion of the state pension fund is 5% and if we are at $195 million net liability that | think means that the
net liability of the whole system is 20 times that or $3.7 billion approximately, is that roughly correct?

Mr. McIntire

I’m not able to process the math that quickly. The math sounds like it makes sense to me and | haven’t done
the calculation. | think your underlying premise of what you are thinking is proper.

Mayor Donchess
Thank you very much for coming in and informing us about the audit.
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract Award for Field Day and Fireworks (Value: $14,500)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
ATLAS PYRO-VISION ENTERTAINMENT GROUP, INC. IN THE AMOUNT OF $14,500. FUNDS ARE
AVAILABLE IN DEPARTMENT 177, PARKS AND RECREATION; GENERAL FUND; 55, OTHER
SERVICES

ON THE QUESTION

Alderman Clemons

Just for a quick clarification, in reading this it looks like this is a multi-year contract, is that the case?

Mr. Kooken

We have an option for a second and third year but right now we are only at the first year and we may not take
the option for the second or third year. We can put it back out to bid next year.

Alderman Clemons

Okay so we are not committed to all three? It looked like they were giving us the discount if we went for all
three years but that’s not the case.

Finance Committee Page 8
March 2, 2016

Alderman Caron

| noticed that this isn’t the low bidder. Is Pyro-Vision someone that we have used before in the last ten years?
Mr. Kooken

It actually is the low bidder.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: School Zone Speed Radar Feedback Signs for Ordinance 0-15-074 (Value: $19,600)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND APPROVE THE PURCHASE FROM
MARLIN CONTROLS, INC. IN THE AMOUNT OF $19,600. SOURCE OF FUNDING IS DEPARTMENT 161,
STREETS; GENERAL FUND; 61, SUPPLIES & MATERIALS

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: 2016 Paving Program (Value: $2,677,902)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD OF
ALDERMEN APPROVAL, AWARD THE CONTRACT TO BROX INDUSTRIES, INC. IN THE AMOUNT OF
$2,677,902. FUNDS ARE AVAILABLE IN DEPARTMENT 161, STREET DEPART-MENT; GENERAL
PAVING AND PROPERTY SERVICES TRUST FUNDS; AND, DEPARTMENT 169, WASTEWATER, SEWER
STRUCTURES & SEWER REHAB

ON THE QUESTION
Alderman Clemons

How are the streets determined on this list?

Alderman Siegel

As a Board of Public Works liaison | will tell you that there is a program that is used that looks at a matrix of
traffic count and street condition based on observation. | will also say that there almost completely finished
with migrating to a brand new software system that we purchased last term and so it will be even more flexible
and formalized. My hope would be given that the format of the data is compatible with our GIS system that we
might even be able to incorporate it into that but I’m not sure about that. There is a logical system and it’s very
specifically designed to avoid any kind of favoritism in any Ward than another.

Alderman Clemons

I’ve heard that there’s a new piece of technology but | didn’t know if it were going to show different results than
what we are seeing here or if it’s just an easier way to calculate what we are already doing.

Alderman Siegel

It’s not clear whether it will show different results but last term there was a concern by the Board of Aldermen
about bonding a significant amount of money for paving citywide, specifically because we wanted to implement
the system and have it in place and get better detailed information. The company that we purchased this
software from is also doing a street-by-street survey. To the extent that we have had surveys done in the past

Finance Committee Page 9
March 2, 2016

and the data has been kept, it’s on an old DOS computer and the existing system is almost frightening but the
good news is that we’ve migrated prior to its expiration. | think they have been doing a fairly decent job
considering the technology that was available. This will be the last time that we have the streets determined
on this. | can only say for my own Ward anecdotally that the right streets were chosen. You can look at the list
that is incorporated here and you can correlate that with your own Ward and see if it makes sense.

Mayor Donchess

Once the new system is on-line we will be able to look at all 1,300 streets all at the same time and we will be
able to have a ranked order of street condition comprehensively all at once. It should result in a more objective
or acompletely objective analysis of what streets are in the worst shape.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Citywide Infiltration Inflow Analysis (Value: $168,893)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
WRIGHT-PIERCE IN THE AMOUNT OF $168,893. SOURCE OF FUNDING IS DEPARTMENT 169,
WASTEWATER; INFLOW AND INFILTRATION

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Biosolids Disposal Contract (Value: $1,215,000)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD OF
ALDERMEN APPROVAL, AWARD THE MULTI-YEAR CONTRACT TO CASELLA ORGANICS FOR A
THREE-YEAR TOTAL AMOUNT OF $1,215,000. FUNDS ARE AVAILABLE IN DEPARTMENT 169,
WASTEWATER; 54, PROPERTY SERVICES

ON THE QUESTION

Alderman Siegel

| just wanted to point out some good news here. While this is a large number, our per ton disposal cost for the
bio solids has decreased significantly. | believe it went from something like $58 per wet ton to $40 and that is a
reflection of the desire for this type of bio solids | guess used in fuels but there is a market for it so that’s
helping us. In addition, the plants dewatering operation is far more efficient and so not only are we paying less
to get rid of this waste but we are dewatering more efficiently so we are actually carting less out. That was all
good news that we learned at Monday’s Board of Public Works meeting and | thought that was worth sharing.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: SCADA Upgrades Design Services (Value: $188,500)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
WOODARD & CURRAN IN THE AMOUNT OF $188,500. SOURCE OF FUNDING IS DEPARTMENT 169,
WASTEWATER; WERF; 81, CAPITAL OUTLAY/IMPROVEMENTS

MOTION CARRIED

Finance Committee Page 10
March 2, 2016

From: Dan Kooken, Purchasing Manager
Re: Pump Station Upgrades Design Services (Amendment 1) (Value: $15,000)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AUTHORIZE AMENDMENT #1

TO THE CONTRACT WITH WOODARD & CURRAN IN THE AMOUNT OF $15,000. FUNDS ARE
AVAILABLE IN DEPARTMENT 169, WASTEWATER; PUMP STATION UPGRADES

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Steam Boiler Water Treatment Services (Value: $2,492)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE ORDER #1 TO
THE CONTRACT WITH CLARITY WATER TECHNOLOGIES IN THE AMOUNT OF $2,492. SOURCE OF
FUNDING IS DEPARTMENT 169, WASTEWATER; 54, PROPERTY SERVICES

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Installation of Flow Meter (Value: $15,860)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
METHUEN CONSTRUCTION IN THE AMOUNT OF $15,860. FUNDS ARE AVAILABLE IN DEPARTMENT
169, WASTEWATER; WERF; 81, BUILDINGS & IMPROVEMENTS

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Roof Replacement (Value: $25,723)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE ORDER #2 TO
THE CONTRACT WITH ROCKWELL ROOFING IN THE AMOUNT OF $25,723. SOURCE OF FUNDING IS
DEPARTMENT 169, WASTEWATER; WERF; 81, CAPITAL OUTLAY/IMPROVEMENTS

MOTION CARRIED

UNFINISHED BUSINESS — None

NEW BUSINESS — None

DISCUSSION

Alderman Caron

| know that there are a lot of things for the wastewater treatment plant but I’m really glad that we are moving
along and making sure that plant is working and up-to-date and ongoing because it is important to the city that
we keep that viable and that we don’t have any structural or other fails. | am pleased with that. | know it’s a lot
of money but | think people have to understand that our wastewater treatment plant is very important to the
city.

Mayor Donchess

| think Mr. Simmons has been doing a very good job bringing it up to standard.

Finance Committee Page 11
March 2, 2016

Alderman Siegel

| would like to echo what Alderman Caron is saying. | want to point out that because of some of the
improvements we are going to end up saving some money; recouping some. There is a lot of money going out
but it’s saving because the plant is operating as it should be. Our anaerobic digester is finally functioning like it
is the way we paid for it so it’s very encouraging.

UNFINISHED BUSINESS — None
NEW BUSINESS — 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
TO FEBRUARY 12, 2016 TO FEBRUARY 285, 2016

MOTION CARRIED

PUBLIC COMMENT

POSSIBLE NON-PUBLIC SESSION

ADJOURNMENT

MOTION BY ALDERMAN WILSHIRE TO ADJOURN
MOTION CARRIED

The Finance Committee meeting was adjourned at 7:55 p.m.

Alderman Ken Siegel
Committee Clerk

FINANCE COMMITTEE
MARCH 2, 2016

7:00 PM Aldermanic Chamber
ROLL CALL

PUBLIC COMMENT

COMMUNICATIONS

From: John L. Griffin, CFO/Comptroller
Re: Melanson Heath Presentation
° Tabled 2/17/16

From: Dan Kooken, Purchasing Manager
Re: Contract Award for Field Day and Fireworks (Value: $14,500); Department: 177 Parks and |
Recreation; Fund: General; Account Classification: 55 Other Services

From: Dan Kooken, Purchasing Manager
Re: School Zone Speed Radar Feedback Signs for Ordinance 0-16-074 (Value: $19,600);
Department: 161 Streets; Fund: General; Account Category: 61 Supplies & Materials

From: Dan Kooken, Purchasing Manager

Re: 2016 Paving Program (Value: $2,677,902); Department: 161 Street; Fund: General: Activity:
Paving Department: 161 Street; Fund: Trust Account Category; 54 Property Services
Department: 169 Wastewater; Fund: Wastewater; Activities: Sewer Structures and Sewer Rehab

From: Dan Kooken, Purchasing Manager
Re: Citywide Infiltration Inflow Analysis (Value: $168,893); Department: 169 Wastewater; Fund:
Wastewater; Activity: Inflow and Infiltration

From: Dan Kooken, Purchasing Manager
Re: Biosolids Disposal Contract (Value: $1,215,000); Department: 169 Wastewater; Fund: Wastewater
Account Classification: 54 Property Services

From: Dan Kooken, Purchasing Manager
Re: SCADA Upgrades Design Services (Value: $188,500); Department: 169 Wastewater; Fund: WERF
Account Classification: 81 Capital Outlay/Improvements

From: Dan Kooken, Purchasing Manager
Re: Pump Station Upgrades Design Services (Amendment 1) (Value: $15,000); Department: 169
Wastewater; Fund: Wastewater; Activity: Pump Station Upgrades

From: Dan Kooken, Purchasing Manager
Re: Steam Boiler Water Treatment Services (Value: $2,492); Department: 169 Wastewater; Fund:
Wastewater; Account Classification: 54 Property Services

From: Dan Kooken, Purchasing Manager
Re: Installation of Flow Meter (Value: $15,860); Department: 169 Wastewater; Fund: WERF
Account Classification: 81 Buildings & Improvements

From: Dan Kooken, Purchasing Manager
Re: Roof Replacement (Value: $25,723); Department: 169 Wastewater, Fund: WERF
Account Classification: 81 Capital Outlay/Improvements

UNFINISHED BUSINESS — None
NEW BUSINESS — None
DISCUSSION

RECORD OF EXPENDITURES
PUBLIC COMMENT

POSSIBLE NON-PUBLIC SESSION

ADJOURNMENT

City of Nashua

Office of the Chief Financial Officer

229 Main Street - Nashua, NH 03060 (603) 589-3171
Fax (603) 589-3233

TO: Members of the Board of Aldermen
rf

FROM: a/ John L. Griffin, CFO/Comptroller

DATE} _February 1, 2016

RE: Melanson Heath Presentation — February 17, 2016

The purpose of this communication is to inform you that Mayor Donchess has scheduled a
presentation by Melanson Heath on Wednesday February 17, 2016 at 7:00 PM in the Aldermanic
Chambers. This presentation will be the first agenda item for the Finance Committee that
evening.

Mr. Scott McIntire, Partner at Melanson Heath, will review the results of the FY2015 Annual
Audit as well as the attached Governance Letter. It would be most helpful if you bring the
recently distributed FY2015 Comprehensive Annual Financial Report with you to the
presentation as Mr. McIntire will refer to the report during his presentation.

MELANSONI| si aNge)

ACCOUNTANTS * AUDITORS

102 Perimeter Road
Nashua, NH 03063
(603)882-111]

melansonheath.com

City of Nashua, New Hampshire

229 Main Street Additional Offices:

Nashua, New Hampshire 03061 Andover, MA
Greenfield, MA
Manchester, NH
Ellsworth, ME

Dear Honorable Mayor and Board of Aldermen:

We have audited the financial statements of the City of Nashua, New Hampshire as

of and for the year ended June 30, 2015 and have issued our report thereon dated
December 30, 2015. Professional standards require that we advise you of the following
matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter, our responsibility, as described by profes-
sional standards, is to form and express an opinion about whether the financial state-
ments that have been prepared by management with your oversight are presented fairly,
in all material respects, in conformity with accounting principles generally accepted in the
United States of America. Our audit of the financial statements does not relieve you or
management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our
audit to obtain reasonable, rather than absolute, assurance about whether the financial
statements are free of material misstatement. An audit of financial statements includes
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control over financial
reporting. Accordingly, as part of our audit, we considered the internal control of the City
solely for the purpose of determining our audit procedures and not to provide any assur-
ance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that
are, in our professional judgment, relevant to your responsibilities in overseeing the
financial reporting process. However, we are not required to design procedures for the
purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously
communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team and others in our Firm have complied with all relevant ethical
requirements regarding independence. Safeguards that have been applied to eliminate
threats to independence or reduce them to an acceptable level include annual certifica-
tion by all Firm staff of independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies.
A summary of the significant accounting policies adopted by the City is included in the
notes to the financial statements. There have been no new accounting policies and no
changes in significant accounting policies or their application during the year ended
June 30, 2015. No matters have come to our attention that would require us, under
professional standards, to inform you about (1) the methods used to account for sig-
nificant unusual transactions and (2) the effect of significant accounting policies in
controversial or emerging areas for which there is a lack of authoritative guidance or
consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by man-
agement and are based on management's current judgments. Those judgments are
normally based on knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility
that future events affecting them may differ markedly from management's current
judgments.

The most sensitive accounting estimates affecting the financial statements are:

e Estimated lives and depreciation methods for depreciable assets.

e Collectability of receivables.

e Net OPEB obligation.

e Net pension liability.
Management's estimates of the above are based on various criteria. We evaluated the
key factors and assumptions used to develop these estimates and determined that it is

reasonable in relation to the basic financial statements taken as a whole and in relation
to the applicable opinion units.