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REPORT OF THE FINANCE COMMITTEE
JANUARY 4, 2017

A meeting of the Finance Committee was held on Wednesday, January 4, 2017, at 7:00 p.m. in the
Aldermanic Chamber.

Mayor Jim Donchess, Chairman, presided.

Members of the Committee present: Alderman-at-Large Mark S. Cookson, Vice Chair
Alderman-at-Large Lori Wilshire
Alderman-at-Large Michael B. O’Brien
Alderman Ken Siegel

Members not in Attendance: Alderman June M. Caron
Alderman Benjamin M. Clemons

Also in Attendance: Mr. Dan Kooken, Purchasing Manager
Mr. Bruce Codagnone, CIO/IT Division Director
Assistant Fire Chief Brian Rhodes, Nashua Fire Rescue

PUBLIC COMMENT - None
COMMUNICATIONS

From: Dan Kooken, Purchasing Manager
Re: Contract Award for (Value: $44,051)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD TWO CONTRACTS TO
TYCO INTEGRATED SECURITY AND ONE CONTRACT TO CUSTOM COMPUTER SPECIALISTS FOR A
TOTAL AWARD AMOUNT OF $44,051. FUNDS ARE AVAILABLE IN DEPARTMENT 122, INFORMATION
TECHNOLOGY; PROPERTY & CASUALTY FUND; LOSS PREVENTION PROGRAM

ON THE QUESTION

Alderman Siegel

| had some questions about some of the pricing here. | absolutely agree that the work has to get done but the
contract price was a little bit high. If | look at and I'll start with Tyco there is a cost of $13,028.83 for East Hollis
Street which has three doors to secure and | ended up looking up the parts and | have sources for $1,221.71
for the door controller and hardware, the transformer at $6,756 and looking at the cost difference between East
Hollis Street and the Lake Street work it’s about on the order of $1,000 per door difference between the other
hardware cost and installation. If | add all of this up | am trying to figure out where the rest of this money is
coming from because | see an item that says locksmith but | assume locksmith does work on each door and
since the total cost differential isn’t that high and then | see this $9,000 in extra cost and | just don’t know
where it came from. The quote from Tyco and I’m not blaming you guys and | understand why this is sole
sourced, we want to integrate it into our existing system but man, | just don’t get it. | understand the urgency to
get the work done because we want to protect personnel but man, I’m a little mystified about that and the Lake
Street cost. We are talking a $25,000 plus to do work in which | am looking at parts costs that are significantly
less and even if | look at a labor rate in the order of $100 to $200 per hour | still don’t get it. The next item was
the custom computer specialist and again, | look at the piece cost so the IP phones that they are quoting us at
$516.74 each, that seemed expensive and | went on-line and it’s $250 more than Metro-Line Direct, $269;
okay whatever so there is a little bit more of a mark-up but they have got cabling prices of $2,000 for cabling.
This is two fire stations, just doors and cabling. Even if they used Cat6 cable which would be overkill, that’s .50
cents per foot and you have $2,000 worth of cost here. Cat5E which is the right cable to use is .34 cents per
foot. Again, | don’t want to nickel and dime but I’m looking at these numbers and also when | see round

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numbers like that for cable I’m like that’s a big red flag. Then | see integration engineer costs of $9,020. To
integrate an IP phone literally you just plug it into a jack and | assume that most of the work is just putting the
video system in place. | saw the cost for that. | don’t understand where all of these extra costs are because
they are not broken out whereas | have other items in this agenda where | know they are getting these amount
of hours for these consultants doing these tasks and I’m not saying that they have to be broken out at the level
where the wastewater treatment plant purchases are but it sure is nice to have a reasonable idea of what it is
going on here. | wish | could have gotten this information to you in advance because | don’t mean to put you
on the spot so | apologize for that but | just don’t understand. | guess | am predisposed to be a bit skeptical
about Tyco because a few years ago when we reviewed the parking garage security system | felt like we were
getting raked over the coals on that one and | voted no on that.

Mr. Codagnone

One of the things is that because they are each separate locations they need a 4-port controller, that’s the
largest piece of the pie so it’s not even just securing the doors. We've seen anywhere from $1,500 to $2,000
per door to put all of the equipment in. The controller on the back end winds up being the highest cost.

Alderman Siegel
$1,221.79.

Mr. Codagnone

Yes, but to put it in and install it and patch it into the system back here, some of those configuration costs,
albeit they are not very broken out here, we have seen other quotes for $2,000 per door. The exact physical
doors, | haven’t seen them so when we talk about the wiring of the IP phones; | haven’t seen where the wires
have to run. In some locations they may need to rent a scissors jack to get up high and they also need a
couple of people because of OSHA standards. Some of the components when we look at custom computer
too is that we are doing the phone integration project right now although the fire station is not ready yet. We
are ready to go live with the North and South High Schools and the police department soon after that. Putting
these phones in, they have to be integrated into those systems and that’s a little bit different, we are kind of
doing things premature that way and the physical phones are video conferencing phones so they more
expensive than a typical IP phone.

Alderman Siegel
| looked up the exact phone and its $269.99 so yes they are more expensive than typical IP phones but they

are not $516.74 expensive. Did you ask them about some of these costs because it’s just not there? I’m
comfortable with us having to do this but not at this cost unless | can see something more detailed.

Mr. Codagnone

We can get more detail if you would like.

Alderman Cookson

| know that we are modeling this Safe Haven Program after the Manchester Fire Department and their
implementation of it. My question is when did we decide that it was necessary that we needed to have this
additional security in order to implement the Safe Haven Program in Nashua?

Assistant Chief Rhodes

Chief Galipeau and | visited Manchester on a couple of occasions. Our stations have zero security compared
to the fire stations in Manchester. The vast majority of the fire stations in Manchester have some form of a

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vestibule where one door is on the inside and one is on the outside but their buildings are secure. All of their
individuals have KeyFobs that an individual can get into the apparatus floor but cannot go anywhere else in
their buildings. From day one that was one of my concerns for our civilian staff and that’s the primary reason
why when we met with the Mayor | said we will do what we can do to help but we have civilian staff that were
not hired to do this job and they are not trained to handle this type of situation and | don’t think it’s fair to put
them in that predicament. Low and behold we have had six incidents at headquarters that have become very
disruptive for the staff. Not everyone follows directions and goes to the sign out front and they walk right in,
unabated into fire headquarters. It’s not a good situation. | had conversations with each one of our civilian
staff and explained to them that we care and we don’t want you to be exposed to this and that our SOP deals
directly and speaks directly to them as to their level of engagement or non-engagement that we expect from
them but unfortunately at this point we’ve had six incidents at headquarters and yesterday we had one at the
Fire Marshall’s office. We have sensitive personnel files and other sensitive city property and probably more
so at Lake Street because they do a lot of counter interactions with contractors and people in the business
community so we are trying to not cloud that experience. The staff is understanding but is very hopeful that it
is coming and that is how we sold it to them. There are many occasions where the chief or | may be at a
meeting and our two admins at headquarters are the only ones on that side of the building and it’s the same
thing at Lake Street. Hind sight being 20/20 we probably should have built these buildings a little different
because they can’t physically see someone until they walk into their space.

Alderman Cookson

Thank you for that explanation. Could you remind us, is the Safe Haven Program in Nashua, can they go to
any fire station? Is it just these two that we mentioned this evening that it’s not visible to your staff when
someone enters So it’s out of concern for their safety?

Assistant Chief Rhodes

It’s out of concern for their safety and because those are the only two locations where we have civilian staff as
well as the confidential documents that exist in each of those buildings.

Alderman Cookson

Mayor, when you introduced this program | thought that there was a statement that may have been made
during one of your opening comments at a Board of Aldermen meeting and | think it was in either November or
December and we had talked about the implementation of it and there was not going to be any additional cost
to run this program and then we came out and put aside $20,000 for AMR and Keystone to handle the
transportation costs and now we’ve got $44,000 worth of equipment to our fire houses. There is a cost to this
and whether it was known from day one but we have certainly modeled it after Manchester and | would have
assumed that because we modeled it after Manchester that we would be able to foresee some of these
expenses so | am having a really hard time swallowing the fact that from no cost it is now probably close to
$60,000 or $70,000. Is it a worthwhile program? Absolutely but | sort of feel like our hands are tied behind
our backs at this point because if we had known this up front we could have planned for it and done what we
needed to and now instead of a ready, aim, fire type of scenario we’ve already fired the gun and now we have
to go back and retrofit everything to make it the way it should have been.

Mayor Donchess

| think what happened is that we had been looking at the Manchester program for quite some time but we
didn’t have all of the tools that we needed to implement it, specifically the ability to have someone respond to
the fire station and then take the person to a place where the fire staff wouldn't have to be dealing with them
for more than 10 or 15 minutes and where they could be taking care of and directed to appropriate treatment.
Then in September and October we had seven fatalities in each of those months so | went up to Manchester
and met with Stephanie Bergeron of Serenity Place and | said we don’t have the ability at the moment to
respond immediately to the fire stations. If we do the program in Nashua can you come and pick the people

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up and she said it would be difficult but if there was a need maybe. There was obviously going to be a cost
involved. Then | spoke with Peter Kelleher of Harbor Homes and | said is there any reason why we shouldn’t
do that and he said there is a reason and it’s because we at Harbor Homes think given some grants that we
have received and we are now getting 11 medical respite beds and we have Maple Street so we think we can
meet that need. | think everyone that was involved was in a bit of a hurry because it seemed like the situation
was escalating and we had more people than ever before dying of overdoses plus the fire department was
doing so many Narcan administrations. We decided that even though we didn’t have the security features in
place that it was worth going ahead and coming back for the security features after we got the program off of
the ground. | think that what | said was that | thought that the...| was really referring to the operational costs,
that they would be limited and the estimate | had been given was around $20,000 for transportation for the
remainder of the year. That estimate is probably going to be low because we are getting many more reports
than...we’ve had sixteen people in four days show up in the first days of 2017 so Harbor Homes is working
with the situation to try to determine what their transportation costs are and they are stretched to the limit in
terms of the number of people that are showing up and they are doing such a good job that at least there is
some discussion of the fact that they are placing people so quickly that now the word is out that maybe the
best place to go is Nashua because Harbor Homes is doing such a good job. | think | mentioned the $20,000
and that was an estimate. | did not mention this because | was thinking of operational costs as opposed to a
one-time expense and because this seemed to be something we should have done anyway. | probably
should have mentioned it but as you pointed out, | didn’t so | apologize for that but | think it is a one-time
expense. We didn’t really even have a cost figure at that time but we were thinking it would cost a little bit
less.

Alderman Cookson

Thank you, Mr. Mayor, | appreciate that response. Your last comment leads to the question if the Safe
Havens Program is as successful as we want it to be and we address the epidemic and it’s no longer an
epidemic, would this need right now for the security and the keys and the doors and the phones and the video
to the fire alarm station, would that still be something that you would pursue if the Safe Haven Program is
successful and is ultimately not needed.

Assistant Chief Rhodes

Absolutely, the world we live in, this isn’t the Nashua that | came to in 1987. We have a lot of confidential
information and this is critical city infrastructure. This has been on my plate since | became the assistant
chief.

Alderman O’Brien

We are talking about a responsibility to our employees. We are not asking for all six stations for this special
security, we are only asking for two; fire alarm headquarters and the Fire Marshall’s office. | wonder if court
documents of arsonists and other types of juvenile offenses that are affected that the fire department does
handle, confidential information is being stored at the Lake Street station, well, it is and it needs a special type
of security. Assistant Chief Rhodes, do we already have a secure facility? How do | get into fire alarm?

Assistant Chief Rhodes
Our fire alarm facility at 38 Lake Street is a secure facility that has an intercom system and automatic
electronic locks. There are two levels of security before someone could get into the actual dispatch center.

There is also video surveillance there.

Alderman O’Brien

Is this NFPA compliant issue that that facility has to be that secure?

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Assistant Chief Rhodes

Fire alarm, public safety, answering points, yes, by NFPA, they are required to be in a separate location in the
event of catastrophic event. They are supposed to be self-sufficient and secure because of the nature of the
work that they do.

Alderman O’Brien

So this would not be far-fetched to a building where we have secretaries that may not be able to handle
certain circumstances to add a level of security? They should be under the same protection as the NFPA
protects fire alarm. Do you know of any NFPA rules that say secure stations and locked stations to protect
municipal equipment?

Assistant Chief Rhodes

| do not. Not for fire stations. We have taken measures over the last few years, much to the chagrin of the
membership to shut the doors of a lot of our downtown fire stations during the day. It’s not something we like
to do but with a lot of the activity that goes on during the day and people wandering in; we’ve had that happen
at the East Hollis Street station. People expect their fire department to be open and accessible.

Alderman O’Brien

Have we ever had anybody in the dead of night come into a fire station uninvited and sleep on the floor and
some deputy chief gets up to have coffee in the morning and goes whoa?

Assistant Chief Rhodes

| believe so, yes.

Alderman Siegel

| think that what’s happened here is the circumstance in which Safe Stations is being implemented has
uncovered a more immediate need for something that needed to be done anyway. My main concern is yes let’s
do this but at a price that we don’t feel that we are being taking advantage of. | don’t understand why there
would not be a need for the other fire stations. Are they already secured?

Assistant Chief Rhodes

Currently all of our buildings have cypher locks on the exterior doors but none of these other locations employ
civilian employees. It is still a concern, the city’s investment in the infrastructure of the building but at this
point we were just looking to take care of our civilian employees with the hope that maybe with the new
integrated phone system that we might be able to at some point down the road secure these other facilities a
little bit better.

Alderman Siegel

| know that’s not part of the discussion this evening but | believe that is something that would clearly have to
come up. Your personnel need to remain safe in addition to the equipment. We live in a crazy world.

Why are we funding this from the Risk Management pool because this is explicitly for employee safety?

Mayor Donchess

| think it's customarily where we get the money. There has to be a pre-appropriated amount or a new
appropriation. Traditionally we have used the Risk Management pool when addressing these types of

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situations. It could come from contingency but this is the proposal. If we took it from contingency it would
require a transfer and not simply an approval of a contract but we could. Contingency would probably require
a resolution.

Alderman Siegel

| understand that in this particular case and | am kind of looking forward. We have had some experience, not
with this administration, with some creative uses of several of our funding sources and | want to keep us from
being too creative because that sort of just bypasses the approval process that we have in the budgetary
discussions that we have every year.

Alderman O’Brien

Mr. Codagnone, can you explain the vetting process that one goes through to look at these contracts? We as
Alderman put great faith in you to come up with the best deal possible. Is this the best deal possible?

Mr. Codagnone

Normally we would go through a bidding process but with the door access we are using the same company
that we’ve used across the city and historically they have been high in some places and low in other places
but they have also been very good at what they have done. It doesn’t always come down to the best price but
the best work. It took them over a year to do the parking garage because of the extreme weather we had that
year and they lost money. They will work very hard for us and they will do the right thing and if we need them
to make it transparent they will do that. If we have issues with it even if it’s not under warranty they will come
back and fix it so from a quality standpoint they are very good. On the IP telephony side this happens to be
the company that we are using right now to do the citywide telecom project for all city locations. Typically if
they quote $2,000 for cabling they are throwing that number out there almost as a not-to-exceed, granted that
should be spelled out there but if they don’t use it all then they don’t usually charge us that much.

Alderman Siegel

I’d like that to be explicit. The last thing | want to see is someone getting hurt because this is delayed. We do
meet every two weeks and I’m just not comfortable with this contract with what | see know. | guess I’d like to
ask Assistant Chief Rhodes what his sense is of the timing and if delaying it by two weeks...| mean I’ve got
the taxpayer responsibility and the responsibility as an Alderman to be careful and look out for our personnel.

Assistant Chief Rhodes

| think | can honestly say that our civilian employees understand how city government works and that we will do
the right thing but it can take time. In 49 days we’ve had 64 entrants into our program; yesterday we had 8 alone
and 4 of those were at headquarters with 2 of them being handled by our civilian staff. We could go another two
weeks and have no one or we could have another 6. We are just hopeful that there will be a resolution soon.

Alderman Wilshire

| really appreciate what the fire department is doing. | think all employees need to feel safe in their workplace
and | know that Alderman Siegel’s concerns are valid and | think he will support it once all of the ducks are ina
row. | don’t think two weeks is all that unreasonable and | intend to support it but | too would like to see the nuts
and bolts of the project.

Alderman Cookson

Once this is approved and it goes through the process that it needs to, how quickly does the solution get
implemented at these two locations?

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January 4, 2017

Mr. Codagnone

| don’t think we can answer that at this point in time because it’s really scheduling resources with the vendors. It
may take a couple of weeks after that.

Alderman Cookson

Okay so even if this got approved today nothing is happening tomorrow or in another two weeks?
Mr. Codagnone

Correct.

Alderman O’Brien

How long did it take to get this bid and contract in writing and how long if we went through a bid process again to
see if we can get another vendor that would be cheaper, what are we looking at?

Mr. Kooken

Purchasing wasn't involved in the quoting, it was Mr. Codagnone’s prerogative but | don’t think this is a situation
where we want to change vendors, | think we want to vet the numbers. Using another vendor would be counter-
productive because it’s consistent with all of the integration that we have going on.

Alderman O’Brien
In essence | agree with Alderman Siegel but | am going to vote for the current contract because | do wish to

save as much money for our taxpayers but when it comes down to the safety of our employees | have to put
that at a higher standard. | am not saying Alderman Siegel is not saying that.

Alderman Siegel

| believe if we decide to table it | don’t believe that we would be holding up the process because they are not
going to start tomorrow anyway.

Alderman Wilshire

| support this but | think Alderman Siegel has the right to ask for the nuts and bolts about how this contract was
made up and | will support it when it comes back to us, hopefully soon.

Assistant Chief Rhodes

| don’t think these intakes are ever going to go away. We didn’t get here overnight and we are not going to get
out of this in my lifetime. We appreciate you entertaining this.

MOTION BY ALDERMAN SIEGEL TO TABLE
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract Award for Design Engineering Services for the Water Booster Station Upgrade
(Value: Not-to-Exceed $105,600)

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January 4, 2017

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
WOODARD & CURRAN IN AN AMOUNT NOT-TO-EXCEED $105,600. SOURCE OF FUNDING IS
DEPARTMENT 169, WASTEWATER; SRF LOAN; WATER BOOSTER STATION

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract Award for Engineering Services for the Evaluation of the Wet Weather Facility
(Value: Not-to-Exceed $35, 100)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
WRIGHT PIERCE IN AN AMOUNT NOT-TO-EXCEED $35,100. FUNDS ARE AVAILABLE IN DEPARTMENT
169 WASTEWATER; WASTEWATER FUND

ON THE QUESTION

Alderman Siegel

The only comment | have and | am in favor of this is that we even have to be doing this at all. It’s a constant
source of aggravation that the wet weather facility, with all of the money that we paid, does not operate
properly, it’s ridiculous.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: | Award for Purchase and Installation of Siphon and Manhole Covers (Value: $49,875)

MOTION BY ALDERMAN SIEGEL TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
WILLIAM P. DAVIS EXCAVATION IN AN AMOUNT NOT-TO-EXCEED $49,875. SOURCE OF FUNDING IS
DEPARTMENT 169, WASTEWATER; WASTEWATER FUND

MOTION CARRIED

DISCUSSION
Alderman O’Brien

| would like to thank my colleagues, | thought that was a very good discussion on the fire department but |
would like to get the information that was alluded to. | did work a shift one night and when | got up to make
coffee for the crew there was a gentleman having coffee with me. Thank God he was a nice gentleman and
we got him to a proper shelter. It does happen and | am extremely concerned. We do have female employees
and we should really take that into consideration. | am sure my fire guys can take care of themselves but if
they go out on a call the doors go up and you don’t know what comes in. The secretaries in the office have no
way to monitor the apparatus floor and if anyone was coming in. This is something that we have to deal with in
2017. It’s not even in relation to the Safe Stations; it is just general common sense to secure a municipal
building.

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 DECEMBER 16, 2016, TO DECEMBER 29, 2016

MOTION CARRIED

PUBLIC COMMENT - None

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POSSIBLE NON-PUBLIC SESSION
ADJOURNMENT

MOTION BY ALDERMAN WILSHIRE TO ADJOURN
MOTION CARRIED

The Finance Committee meeting was adjourned at 7:54 p.m.

Alderman Ken Siegel
Committee Clerk

Government-Wide Financial Analysis

The following is a summary of condensed government-wide financial data for the current and prior
fiscal year (in thousands):

Govemmental Business-Type
Activities Activities Total
2021 2020 2021 2020 2021 2020

Current assets $ 304923 $ 278443 § 23,030 §$ 24,054 $ 327953 $ 302,497
Capital assets 362,520 333,460 178,108 W777 $40,628 310,577
Other noncurrent assets 119,745 123,435 — - 119,745 123,435

Total assets 787,188 735,338 201,138 201,17) 988,326 936,509
Deferred outflows of resources 97,681 45,103 953 348 98,634 45,451
Long-term liabilities 669,677 $84,361 67,608 80,835 737,285 665,196
Other liabilities 69.937 38,983 18,967 11,064 88,904 $0,047

Total liabilities 739,614 623,344 86,575 91,899 826,189 715,243
Deferred inflows of resources 136,191 128,112 3,634 660 139,825 428,772
Net investment in capital assets 235,154 224,166 106,737 102,882 341,891 327,048
Restricted 49.918 41,309 7,428 6,561 57,346 47,870
Unrestricted (276,008) (236,490) {2,283) (483) (278,291) (236,973)

Total net position $ 9064 § 28.985 $$ 111,882 $ 108960 $ 120946 $§ 137,945

As depicted in the table above, the largest portion of the City’s net position, $341.9 million, reflects
its investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related
outstanding debt used to acquire those assets. The City uses its capital assets to provide services
to citizens; consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.

An additional portion of the City’s net position, $57.3 million, represents resources that are subject
to external restrictions on how they may be used (i.e., grants, capital projects, contributions, etc.).
The remaining balance of net position ($278.3 million) is considered unrestricted and represents
the City's ongoing obligations to citizens and creditors.

At the end of the current fiscal year, while the City’s unrestricted net position reflects a negative
balance due to the impact of GASB 68 - Accounting and Financial Reporting for Pensions and
GASB 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than Pension
(OPEB). The City is able to report a positive net position for the government as a whole, as well as
for its separate Wastewater and Solid Waste activities. The same situation held true for the prior fiscal
year.

The restricted portion of net position $7.4 million reported within the City’s business-type

activities, primarily represents the regulatory funds set-aside for the closure of the Nashua Four
Hills Lined Landfill.

22