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£:00 PM

FINANCE COMMITTEE

MARCH 15, 2017
Aldermanic Chamber

ROLL CALL

PUBLIC COMMENT

COMMUNICATIONS

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John L. Griffin, CFO/Comptroller
Melanson Heath Presentation — March 15, 2017

Mayor Jim Donchess
McFarland Johnson Contract Amendment for Park and Ride Project Engineering

Mayor Jim Donchess
Hoyle Tanner and Associates Contract Amendment for Nashua Canal Pedestrian Bridge
Engineering Services

Dan Kooken, Purchasing Manager
NPD Main Electrical Panel and Breaker Upgrade (Value: $48,900)
Department: 150 Police; Fund: Trust Fund Building and Improvements

Dan Kooken, Purchasing Manager
NPD Main Fire Panel Replacement (Value: $26,532)
Department: 150 Police; Fund: Trust Fund Building and Improvement

Dan Kooken, Purchasing Manager

Purchase of One (1) Swat Robot (Value: $60,072)

Department: 150 Police; Fund: 2016 Department of Safety Homeland Security Tactical
and Hazmat Robot Grant

Dan Kooken, Purchasing Manager
Purchase of 2017 Fireworks Display (Value Not To Exceed: $15,500)
Department: 177 Parks And Recreation; Fund: General

Dan Kooken, Purchasing Manager

Contract for Portable Toilet Rental and Service (Value: $17,225)
Department: 166 Parking; Fund: General $660

Department: 177 Parks and Recreation; Fund: General and Trusts $13,925
Department: 169 Wastewater; Fund: Wastewater $2,640

Dan Kooken, Purchasing Manager
Four Hills Landfill Residential Setback Barrier Wall Construction — Change Order #3
(Value: $291,932); Department: 168 Solid Waste; Fund: Bond

Dan Kooken, Purchasing Manager
Contract for Primary Clarifier Upgrades — Study and Evaluation Phase (Value Not-To-Exceed
$95,500): Department: 169 Wastewater; Fund: SRF Loan

UNFINISHED BUSINESS — None

NEW BUSINESS — None
DISCUSSION

RECORD OF EXPENDITURES

PUBLIC COMMENT
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

DATE;

FROM: (v¥” John L. Griffin, CFO/Comptroller
March 7, 2017

RE: Melanson Heath Presentation — March 15, 2017

The purpose of this communication is to inform you that Mayor Donchess has scheduled a
presentation by Melanson Heath on Wednesday March 15, 2017 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 FY2016 Annual
Audit as well as the attached Governance Letter, It would be most helpful if you could bring
your copy of the FY2016 Comprehensive Annual Financial Report (CAFR) with you as Mr.
McIntire will be frequently referring to the CAFR as part of his remarks.

ACCOUNTANTS * AUDITORS

MELANSONI| pga

102 Perimeter Road

Nashua, NH 03063
(603) 882-1111
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, 2016 and have issued our report thereon dated
December 20, 2016. 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, 2016. 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.

@ Net OPEB obligation.

e Net pension liability.

Management's estimates of the above are based on various criteria. We evaluated the

+ ad te davolan en aatimnatae ane Alatercnsin and feat tt ten
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.

ENGINEERING CONSTRUCTION PHASE CONTRACT
For Professional Services for Treatment Works

Page 2 of 2

Part Ill Price Summary

Competitors Catalog Listings, In-house Estimates, Prior Quotes
(Indicate basis for price comparison)

Market Price(s)

Proposed Price

Total

Part IV Direct Labor by Category

14. Insert the appropriate work category in the table below. Work categories would include but not be limited to those categories
shown in the Contract Documents such as design, survey, subsurface, cadastral, O&M Manual, administration, inspection, record

drawings, start-up, special services etc.

un 2 | 3 2
z £ 5 < 2
“ o = = c <
s |% |3 2 3 8 6s | 2 & 2
a 5 3s £
-f/s i eg|a 5 ad é 2 2 ro @
Work 2 | @ 2 Ys|u P= 35 2 © 5 Ss 5
or —E | 6 = Ss] Oo 3 2s o Fa uw ra 3
category % ~ 5 Eg pa = S $ u oO i] @ 5
> © g 2 22 $ 8 = & 2 £ v o ry s
s/2 |§ |Z£|8 |e eR |=E/8 |S2/8 |£ ]E | 8
-=|2 |2 |zel]zelselee/E 1/4 | $2) 8s]/38 |= | 8
2/3 |3 |S2)8e)/ e828) 3e)/e|s | ES} ERS | gs | = 2 7
els |S |§s|§bl|se ee/2)/% | sF|/sBys |e | § |e 3
a | oa o &=/&3 |224| f£o/sa a Af|aa |= o fo FS] S
Project
rojec 26 | 12 1 8 0 2 4 0 2 0 0 2 0 57 $90 | $5,130
Director
Project
rojec 339 | 84 24 260 108 12 16 4 24 96 72 16 12 1067 | $70 | $74,690
Manager
sre 76 «| 24 0 273 24 8 34 0 48 94 12 25 0 618 $72 | $44,496
Associate
Associate | 0 0 0 225 60 0 0 60 |0 70 24 25 0 464 $53 | $24,592
Sr.
Principal 124 | 304 | 40 128 72 52 178 0 32 88 72 80 80 1250 | $48 | $60,000
Engineer
Principal 32 | 96 0 886 300 36 68 8 112 | 416 264 50 92 2360 | $43 | $101,480
Engineer
Engineer | 52 | 88 0 1126 | 284 0 0 0 96 332 92 90 80 2240 | $37 | $82,880
TOTALS | 8056 $393,268

Rev. 2020-11

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly
sensitive because of their significance to financial statement users. We noted no partic-
ularly sensitive disclosures affecting the City’s financial statements.

Identified or Suspected Fraud

We have not identified or obtained information that indicates that fraud may have
occurred.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing with management relating to the
performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate

all known and likely misstatements identified during the audit, other than those that

we believe are trivial, and communicate them to the appropriate level of management.
Further, professional standards require us to also communicate the effect of uncorrected
misstatements related to prior periods on the relevant classes of transactions, account
balances or disclosures, and the financial statements as a whole and each applicable
opinion unit. We have not identified any uncorrected misstatements.

In addition, professional standards require us to communicate to you all material, cor-
rected misstatements that were brought to the attention of management as a result of
our audit procedures. There were no identified material misstatements, either individually
or in the aggregate, to the financial statements taken as a whole or to the applicable

opinion units.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with manage-
ment as a matter, whether or not resolved fo our satisfaction, concerning a financial
accounting, reporting, or auditing matter, which could be significant to the City’s finan-
cial statements or the auditor's report. No such disagreements arose during the course
of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included
in the letter dated December 20, 2016.

Management's Consultations with Other Accountants

In some cases, Management may decide to consult with other accountants about
auditing and accounting matters. Management informed us that, and to our knowledge,
there were no consultations with other accountants regarding auditing and accounting

matters.

Other Significant Matters, Findings or Issues

In the normal course of our professional association with the City, we generally discuss
a variety of matters, including the application of accounting principles and auditing
standards, operating and regulatory conditions affecting the entity, and operational
plans and strategies that may affect the risks of material misstatement. None of the
matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information in Documents Containing Audited Financial Statements

Pursuant to professional standards, our responsibility as auditors for other information in
documents containing the City’s audited financial statements does not extend beyond
the financial information identified in the audit report, and we are not required to perform
any procedures to corroborate such other information. However, in accordance with
such standards, we have read the information (if applicable) and considered whether
such information, or the manner of its presentation, was materially inconsistent with the
presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is
a material misstatement of fact. Nothing came to our attention that caused us to believe

that such information, or its manner of presentation, is materially inconsistent with the
information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the governing body and
management of the City and is not intended to be and should not be used by anyone
other than these specified parties.

Sincerely,

Molaro Hoath

December 20, 2016

Jim Donchess

Mayor - City oF NASHUA

February 17, 2017
To: Board of Aldermen Finance Committee
Re: McFarland Johnson contract amendment for Park and Ride project engineering

In June 2016, the City entered into a contract for engineering services with McFarland Johnson
for the Park and Ride project located at 25 Crown Street. This project is entirely funded by a NH
Department of Transportation grant.

During recent geotechnical work at the site required to plan and design stormwater management
for the project, elevated levels of a contaminant were found in one of the groundwater wells
sampled. This finding requires further investigation and notification to NH Department of
Environmental Services. Because this work was not planned within the scope of the project, a
contract amendment was necessary. The needed scope of work will be completed by sub-
contractor SanbornHead for the amount of $6,500 paid by the grant. Any additional groundwater
sampling or monitoring required during the construction of the project will be incorporated into
the construction budget.

229 Main Street * PO Box 2019 « Nashua, New Hampshire 03061-2019
603.589.3260 + fax 603.594.3450 * NashuaMayor@NashuaNH.gov
www.NashuaNH.gov

Jim Donchess

Mayor - Ciry oF NASHUA

February 17, 2017

To: Board of Aldermen Finance Committee

Re: Hoyle Tanner and Associates contract amendment for Nashua Canal pedestrian bridge
engineering services

In June 2016, the City entered into a contract for engineering services with Hoyle Tanner and
Associates for the pedestrian bridge over the Nashua Canal, with a crosswalk on Ledge Street
and a trail connection to the Heritage Rail Trail. This project is 80% funded by a NH
Department of Transportation grant with a 20% match from the City.

This contract amendment includes an additional $715 fee for geotechnical services not originally
budgeted for this project. The original boring location adjacent to Ledge Street had to be
relocated due to conflict with a large underground drainpipe. The boring done at this location
required five feet of rock coring not included in the original contract.

The additional fee associated with this contract amendment for geotechnical services is $715, of
that $143 is the match portion for which the City is responsible.

229 Main Street * PO Box 2019 « Nashua, New Hampshire 03061-2019
603.589.3260 + fax 603.594.3450 * NashuaMayor@NashuaNH.gov
www.NashuaNH.gov